Target 2008 Annual Report Download - page 18

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2008 2007 2006 (a) 2005 2004 2003
Financial Results: (in millions)
Sales $62,884 $61,471 $57,878 $51,271 $45,682 $40,928
Credit card revenues 2,064 1,896 1,612 1,349 1,157 1,097
Total revenues 64,948 63,367 59,490 52,620 46,839 42,025
Cost of sales 44,157 42,929 40,366 35,788 32,226 29,057
Selling, general and administrative expenses (b) 12,954 12,670 11,852 10,324 9,016 7,989
Credit card expenses 1,609 837 707 776 737 722
Depreciation and amortization 1,826 1,659 1,496 1,409 1,259 1,098
Earnings from continuing operations
before interest expense and income taxes (c) 4,402 5,272 5,069 4,323 3,601 3,159
Net interest expense 866 647 572 463 570 556
Earnings from continuing operations before income taxes 3,536 4,625 4,497 3,860 3,031 2,603
Provision for income taxes 1,322 1,776 1,710 1,452 1,146 984
Earnings from continuing operations $ 2,214 $ 2,849 $ 2,787 $ 2,408 $ 1,885 $ 1,619
Per Share:
Basic earnings per share $ 2.87 $ 3.37 $ 3.23 $ 2.73 $ 2.09 $ 1.78
Diluted earnings per share $ 2.86 $ 3.33 $ 3.21 $ 2.71 $ 2.07 $ 1.76
Cash dividends declared $ 0.62 $ 0.54 $ 0.46 $ 0.38 $ 0.31 $ 0.27
Financial Position: (in millions)
Total assets $44,106 $44,560 $37,349 $34,995 $32,293 $27,390
Capital expenditures $ 3,547 $ 4,369 $ 3,928 $ 3,388 $ 3,068 $ 2,738
Long-term debt, including current portion $18,752 $16,590 $10,037 $ 9,872 $ 9,538 $11,018
Net debt (d) $18,562 $15,238 $ 9,756 $ 8,700 $ 7,806 $10,774
Shareholders’ investment $13,712 $15,307 $15,633 $14,205 $13,029 $11,132
Retail Segment Financial Ratios:
Comparable-store sales growth (e) (2.9%) 3.0% 4.8% 5.6% 5.3% 4.4%
Gross margin (% of sales) 29.8% 30.2% 30.3% 30.2% 29.5% 29.0%
SG&A (% of sales) (f) 20.4% 20.4% 20.3% 19.9% 19.6% 19.4%
EBIT margin (% of sales) 6.5% 7.1% 7.4% 7.5% 7.2% 7.0%
Other:
Common shares outstanding (in millions) 752.7 818.7 859.8 874.1 890.6 911.8
Cash flow provided by operations (in millions) $ 4,430 $ 4,125 $ 4,862 $ 4,451 $ 3,808 $ 3,188
Revenues per square foot (g)(h) $ 301 $ 318 $ 316 $ 307 $ 294 $ 287
Retail square feet (in thousands) 222,588 207,945 192,064 178,260 165,015 152,563
Square footage growth 7.0% 8.3% 7.7% 8.0% 8.2% 8.8%
Total number of stores 1,682 1,591 1,488 1,397 1,308 1,225
General merchandise 1,443 1,381 1,311 1,239 1,172 1,107
SuperTarget 239 210 177 158 136 118
Total number of distribution centers 34 32 29 26 25 22
(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 domestic marketable securities of $190, $1,851, $281, $1,172, $1,732 and $244, 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) See definition of comparable-store sales in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(f) New account and loyalty rewards redeemed by our guests reduce reported sales. Our Retail Segment charges these discounts to our Credit Card Segment, and the
reimbursements of $117 million, $114 million, $109 million, $98 million, $80 million and $67 million, respectively, are recorded as a reduction to SG&A within the Retail Segment.
(g) Thirteen-month average retail square feet.
(h) 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.
Financial Summary Continuing Operations