Target 2007 Annual Report Download - page 18

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2007 2006(a) 2005 2004 2003 2002
Financial Results: (in millions)
Sales $61,471 $57,878 $51,271 $45,682 $40,928 $36,519
Credit card revenues 1,896 1,612 1,349 1,157 1,097 891
Total revenues 63,367 59,490 52,620 46,839 42,025 37,410
Cost of sales 41,895 39,399 34,927 31,445 28,389 25,498
Selling, general and administrative expenses (b) 13,704 12,819 11,185 9,797 8,657 7,505
Credit card expenses 837 707 776 737 722 629
Depreciation and amortization 1,659 1,496 1,409 1,259 1,098 967
Earnings from continuing operations
before interest expense and income taxes (c) 5,272 5,069 4,323 3,601 3,159 2,811
Net interest expense 647 572 463 570 556 584
Earnings from continuing operations before income taxes 4,625 4,497 3,860 3,031 2,603 2,227
Provision for income taxes 1,776 1,710 1,452 1,146 984 851
Earnings from continuing operations $ 2,849 $ 2,787 $ 2,408 $ 1,885 $ 1,619 $ 1,376
Per Share:
Basic earnings per share $ 3.37 $ 3.23 $ 2.73 $ 2.09 $ 1.78 $ 1.52
Diluted earnings per share $ 3.33 $ 3.21 $ 2.71 $ 2.07 $ 1.76 $ 1.51
Cash dividends declared $ .54 $ .46 $ .38 $ .31 $ .27 $ .24
Financial Position: (in millions)
Total assets $44,560 $37,349 $34,995 $32,293 $27,390 $24,506
Capital expenditures $ 4,369 $ 3,928 $ 3,388 $ 3,068 $ 2,738 $ 3,040
Long-term debt, including current portion $16,590 $10,037 $ 9,872 $ 9,538 $11,018 $11,090
Net debt (d) $15,238 $ 9,756 $ 8,700 $ 7,806 $10,774 $10,733
Shareholders’ investment $15,307 $15,633 $14,205 $13,029 $11,132 $ 9,497
Financial Ratios:
Revenues per square foot (e)(f) $ 318 $ 316 $ 307 $ 294 $ 287 $ 281
Comparable-store sales growth (g) 3.0% 4.8% 5.6% 5.3% 4.4% 2.2%
Gross margin rate (% of sales) 31.8% 31.9% 31.9% 31.2% 30.6% 30.2%
SG&A rate (% of sales) 22.3% 22.2% 21.8% 21.4% 21.2% 20.5%
EBIT margin (% of revenues) 8.3% 8.5% 8.2% 7.7% 7.5% 7.5%
Other:
Common shares outstanding (in millions) 818.7 859.8 874.1 890.6 911.8 909.8
Cash flow provided by operations (in millions) $ 4,125 $ 4,862 $ 4,451 $ 3,808 $ 3,188 $ 2,703
Retail square feet (in thousands) 207,945 192,064 178,260 165,015 152,563 140,294
Square footage growth 8.3% 7.7% 8.0% 8.2% 8.8% 11.9%
Total number of stores 1,591 1,488 1,397 1,308 1,225 1,147
General merchandise 1,381 1,311 1,239 1,172 1,107 1,053
SuperTarget 210 177 158 136 118 94
Total number of distribution centers 32 29 26 25 22 16
(a) Consisted of 53 weeks.
(b) Also referred to as SG&A.
(c) Also referred to as EBIT.
(d) Including current portion and short-term notes payable, net of marketable securities of $1,851, $281, $1,172, $1,732, $244 and $357, 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