Target 2015 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2015 Target annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

31. 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 they include our peak sales period of November and December.
We follow the same accounting policies for preparing quarterly and annual financial data. The table below summarizes
quarterly results for 2015 and 2014:
Quarterly Results First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
(millions,€except€per€share€data) 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Sales $ 17,119 $ 16,657 $ 17,427 $ 16,957 $ 17,613 $ 17,254 $ 21,626 $ 21,751 $ 73,785 $ 72,618
Cost of sales 11,911 11,748 12,051 11,798 12,440 12,171 15,594 15,563 51,997 51,278
Gross margin 5,208 4,909 5,376 5,159 5,173 5,083 6,032 6,188 21,788 21,340
Selling, general, and administrative
expenses 3,514 3,376 3,495 3,599 3,736 3,644 3,921 4,058 14,665 14,676
Depreciation and amortization 540 511 551 537 561 535 562 545 2,213 2,129
Gain on sale — — — — — — (620) — (620) —
Earnings before interest expense
and income taxes 1,154 1,022 1,330 1,023 876 904 2,169 1,585 5,530 4,535
Net interest expense 155 152 148 433 151 146 152 151 607 882
Earnings from continuing operations
before income taxes 999 870 1,182 590 725 758 2,017 1,434 4,923 3,653
Provision for income taxes 348 299 409 199 249 232 596 474 1,602 1,204
Net earnings from continuing
operations 651 571 773 391 476 526 1,421 960 3,321 2,449
Discontinued operations, net of
tax (16)(153)(20)(157)73 (174)5 (3,600)42 (4,085)
Net earnings/(loss) $ 635 $ 418 $ 753 $ 234 $ 549 $ 352 $ 1,426 $ (2,640) $ 3,363 $ (1,636)
Basic earnings/(loss) per share
Continuing operations $ 1.02 $ 0.90 $ 1.21 $ 0.62 $ 0.76 $ 0.83 $ 2.33 $ 1.51 $ 5.29 $ 3.86
Discontinued operations (0.03) (0.24) (0.03) (0.25) 0.12 (0.28) 0.01 (5.64) 0.07 (6.44)
Net earnings/(loss) per share $ 0.99 $ 0.66 $ 1.18 $ 0.37 $ 0.88 $ 0.55 $ 2.33 $ (4.14) $ 5.35 $ (2.58)
Diluted earnings/(loss) per share
Continuing operations $ 1.01 $ 0.89 $ 1.21 $ 0.61 $ 0.76 $ 0.82 $ 2.31 $ 1.49 $ 5.25 $ 3.83
Discontinued operations (0.03) (0.24) (0.03) (0.25) 0.11 (0.27) 0.01 (5.59) 0.07 (6.38)
Net earnings/(loss) per share $ 0.98 $ 0.66 $ 1.18 $ 0.37 $ 0.87 $ 0.55 $ 2.32 $ (4.10) $ 5.31 $ (2.56)
Dividends declared per share $ 0.52 $ 0.43 $ 0.56 $ 0.52 $ 0.56 $ 0.52 $ 0.56 $ 0.52 $ 2.20 $ 1.99
Closing common stock price:
High 83.57 62.54 85.01 61.38 80.87 63.93 78.23 77.13 85.01 77.13
Low 74.25 55.07 77.26 55.34 72.94 57.50 67.59 61.12 67.59 55.07
Note: 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 and all other quarterly amounts may not equal the total year due to
rounding.
U.S. Sales€by€Product€Category€(a) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Household essentials 28% 27% 28% 28% 28% 27% 21% 22% 26% 25%
Hardlines 14 15 14 15 13 15 24 24 17 18
Apparel and accessories 20 19 21 20 19 19 18 17 19 19
Food and pet supplies 22 23 20 20 22 21 19 19 21 21
Home furnishings and décor 16 16 17 17 18 18 18 18 17 17
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Supplemental information
Pharmacy (b) 6% 6% 6% 6% 6% 6% 3% 5% 5% 6%
(a) As a percentage of sales.
(b) Included in household essentials.
65