Target 2005 Annual Report Download - page 41

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29. Quarterly Results (Unaudited)
Due to the seasonal nature of our business, fourth quarter operating results typically represent a substantially larger share of total year revenues
and earnings because it includes the holiday shopping season. We follow the same accounting policies for preparing quarterly and annual
financial data. The table below summarizes quarterly results for 2005 and 2004:
First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
(millions, except per share data) 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
Total revenues $11,477 $10,180 $11,990 $10,556 $12,206 $10,909 $16,947 $15,194 $52,620 $46,839
Gross margin $ 3,615 $ 3,140 $ 3,839 $ 3,268 $ 3,829 $ 3,300 $ 5,061 $ 4,529 $16,344 $14,237
Earnings from continuing operations $ 494 $ 392 $ 540 $ 360 $ 435 $ 324 $ 939 $ 809 $ 2,408 $ 1,885
Earnings from discontinued operations,
net of taxes of $25, $19, $2 and $46 $—$40 $—$31 $—$4$—$— $—$75
Gain/ (loss) on disposal of discontinued
operations, net of taxes of $650, $132,
$(21) and $761 (a) $—$— $—$ 1,019 $—$ 203 $—$16 $—$ 1,238
Net earnings (b) $ 494 $ 432 $ 540 $ 1,410 $ 435 $ 531 $ 939 $ 825 $ 2,408 $ 3,198
Basic earnings per share (c)
Continuing operations $ .56 $ .43 $ .61 $ .40 $ .49 $ .36 $ 1.07 $ .91 $2.73 $ 2.09
Discontinued operations $—$ .04 $—$ .03 $—$— $—$— $—$ .08
Gain from discontinued operations $—$— $—$1.12 $—$ .23 $—$ .01 $—$ 1.37
Basic earnings per share (b) $ .56 $ .47 $ .61 $1.55 $ .49 $ .59 $ 1.07 $ .92 $2.73 $ 3.54
Diluted earnings per share (c)
Continuing operations $ .55 $ .43 $ .61 $ .39 $ .49 $ .36 $ 1.06 $ .90 $2.71 $ 2.07
Discontinued operations $—$ .04 $—$ .03 $—$— $—$— $—$ .08
Gain from discontinued operations $—$— $—$1.11 $—$ .23 $—$ .01 $—$ 1.36
Diluted earnings per share (b) $ .55 $ .47 $ .61 $1.53 $ .49 $ .59 $ 1.06 $ .91 $2.71 $ 3.51
Dividends declared per share (c) $ .08 $ .07 $ .10 $ .08 $ .10 $ .08 $ .10 $ .08 $ .38 $ .31
Closing common stock price
High $ 52.50 $ 45.63 $ 59.98 $ 46.43 $ 57.80 $ 50.02 $ 58.85 $ 52.43 $ 59.98 $ 52.43
Low $ 46.41 $ 38.59 $ 46.28 $ 40.80 $ 50.84 $ 40.42 $ 52.61 $ 48.50 $ 46.28 $ 38.59
(a) Minor tax adjustments related to the dispositions of Marshall Field’s and Mervyn’s were recorded in fourth quarter 2004.
(b) Target adjusted its method of accounting for leases related to a specific category of owned store locations on leased land, which resulted in a non-cash adjustment,
primarily attributable to an increase in the straight-line rent accrual, of $65 million ($.04 per share) in the fourth quarter of 2004.
(c) Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes
in average quarterly shares outstanding.