Target 2006 Annual Report Download - page 44

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Consolidated Statements of Cash Flows
(millions) 2006 2005 2004
Operating activities
Net earnings $ 2,787 $ 2,408 $ 3,198
Earnings from and gain on disposal of discontinued operations, net of taxes —— (1,313)
Earnings from continuing operations 2,787 2,408 1,885
Reconciliation to cash flow
Depreciation and amortization 1,496 1,409 1,259
Share-based compensation expense 99 93 60
Deferred income taxes (201) (122) 233
Bad debt provision 380 466 451
Loss on disposal of property and equipment, net 53 70 59
Other non-cash items affecting earnings (35) (50) 73
Changes in operating accounts providing / (requiring) cash:
Accounts receivable originated at Target (226) (244) (209)
Inventory (431) (454) (853)
Other current assets (30) (28) (37)
Other non-current assets 5(24) (147)
Accounts payable 435 489 823
Accrued liabilities 389 351 319
Income taxes payable 41 70 (91)
Other non-current liabilities 100 2 (16)
Other —15 (1)
Cash flow provided by operations 4,862 4,451 3,808
Investing activities
Expenditures for property and equipment (3,928) (3,388) (3,068)
Proceeds from disposal of property and equipment 62 58 56
Change in accounts receivable originated at third parties (683) (819) (690)
Other investments (144) ——
Proceeds from sale of discontinued operations —— 4,881
Cash flow (required for) / provided by investing activities (4,693) (4,149) 1,179
Financing activities
Additions to long-term debt 1,256 913 10
Reductions of long-term debt (1,155) (527) (1,487)
Dividends paid (380) (318) (272)
Repurchase of stock (901) (1,197) (1,290)
Stock option exercises and related tax benefit 181 231 215
Other (5) (1) —
Cash flow required for financing activities (1,004) (899) (2,824)
Cash flows of discontinued operations
Required for operations —— (549)
Required for investing activities —— (44)
Required for financing activities —— (33)
Net cash required for discontinued operations —— (626)
Net (decrease) / increase in cash and cash equivalents (835) (597) 1,537
Cash and cash equivalents at beginning of year 1,648 2,245 708
Cash and cash equivalents at end of year $ 813 $ 1,648 $ 2,245
Amounts presented herein are on a cash basis and therefore may differ from those shown in other sections of this Annual Report. Consistent with
the provisions of Statement of Financial Accounting Standards (SFAS) No. 95, ‘‘Statement of Cash Flows,’’ cash flows related to accounts
receivable are classified as either an operating activity or an investing activity, depending on their origin.
Cash paid for income taxes was $1,823, $1,448, and $1,742 during 2006, 2005, and 2004, respectively. Cash paid for interest (net of interest
capitalized) was $584, $468, and $480 during 2006, 2005, and 2004, respectively.
See accompanying Notes to Consolidated Financial Statements.
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