Target 2006 Annual Report Download - page 18

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2006 (a) 2005 2004 2003 2002 2001
Financial Results: (in millions)
Sales $57,878 $51,271 $45,682 $40,928 $36,519 $32,602
Net credit card revenues 1,612 1,349 1,157 1,097 891 419
Total revenues 59,490 52,620 46,839 42,025 37,410 33,021
Cost of sales 39,399 34,927 31,445 28,389 25,498 23,030
Selling, general and administrative expenses (b) 12,819 11,185 9,797 8,657 7,505 6,612
Credit card expenses 707 776 737 722 629 313
Depreciation and amortization 1,496 1,409 1,259 1,098 967 820
Earnings from continuing operations
before interest expense and income taxes (c) 5,069 4,323 3,601 3,159 2,811 2,246
Net interest expense 572 463 570 556 584 470
Earnings from continuing operations before income taxes 4,497 3,860 3,031 2,603 2,227 1,776
Provision for income taxes 1,710 1,452 1,146 984 851 675
Earnings from continuing operations $ 2,787 $ 2,408 $ 1,885 $ 1,619 $ 1,376 $ 1,101
Per Share:
Basic earnings per share $ 3.23 $ 2.73 $ 2.09 $ 1.78 $ 1.52 $ 1.22
Diluted earnings per share $ 3.21 $ 2.71 $ 2.07 $ 1.76 $ 1.51 $ 1.21
Cash dividends declared $.460 $ .380 $ .310 $ .270 $ .240 $ .225
Financial Position: (in millions)
Total assets $37,349 $34,995 $32,293 $27,390 $24,506 $19,808
Capital expenditures $ 3,928 $ 3,388 $ 3,068 $ 2,738 $ 3,040 $ 3,002
Long-term debt, including current portion $10,037 $ 9,872 $ 9,538 $11,018 $11,090 $ 8,957
Net debt (d) $ 9,756 $ 8,700 $ 7,806 $10,774 $10,733 $ 8,873
Shareholders’ investment $15,633 $14,205 $13,029 $11,132 $ 9,497 $ 7,896
Financial Ratios:
Revenues per square foot (e)(f) $ 316 $ 307 $ 294 $ 287 $ 281 $ 277
Comparable-store sales growth (g) 4.8% 5.6% 5.3% 4.4% 2.2% 4.1%
Gross margin rate (% of sales) 31.9% 31.9% 31.2% 30.6% 30.2% 29.4%
SG&A rate (% of sales) 22.2% 21.8% 21.4% 21.2% 20.5% 20.3%
EBIT margin (% of revenues) 8.5% 8.2% 7.7% 7.5% 7.5% 6.8%
Other:
Common shares outstanding (in millions) 859.8 874.1 890.6 911.8 909.8 905.2
Cash flow provided by operations (in millions) $ 4,862 $ 4,451 $ 3,808 $ 3,188 $ 2,703 $ 2,601
Retail square feet (in thousands) 192,064 178,260 165,015 152,563 140,294 125,359
Square footage growth 7.7% 8.0% 8.2% 8.8% 11.9% 10.9%
Total number of stores 1,488 1,397 1,308 1,225 1,147 1,053
General merchandise 1,311 1,239 1,172 1,107 1,053 991
SuperTarget 177 158 136 118 94 62
Total number of distribution centers 29 26 25 22 16 14
(a) Consisted of 53 weeks.
(b) Also referred to as SG&A.
(c) Also referred to as EBIT.
(d) Including current portion and notes payable, net of marketable securities of $281, $1,172, $1,732, $244, $357 and $84, respectively. Management believes this measure is a more
appropriate indicator of our level of financial leverage because marketable securities are available to pay debt maturity obligations.
(e) Thirteen-month average retail square feet.
(f) In 2006, revenues per square foot were calculated with 52 weeks of revenues (the 53rd week of revenues was excluded) because management believes that these numbers provide
a more useful analytical comparison to other years. Using our revenues for the 53-week year under generally accepted accounting principles, 2006 revenues per square foot were $322.
(g) See definition of comparable-store sales in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Financial Summary – Continuing Operations