MINNEAPOLIS, May 22, 2019 /PRNewswire/ --
- First quarter comparable sales grew 4.8 percent on traffic
growth of 4.3 percent.
- First quarter comparable digital channel sales grew 42
percent, on top of 28 percent last year.
-
- Comparable digital sales contributed 2.1 percentage points
to Target's overall comparable sales growth.
- Same-day fulfillment services (Order Pick Up, Drive Up and
Shipt) drove well over half of the Company's digital sales
growth.
- First-quarter operating income of $1.135 billion was 9.0 percent higher than a year
ago.
- GAAP EPS from continuing operations were $1.53, up 15.1 percent from last year. Adjusted
EPS were $1.53, up 15.9 percent from
last year.
- In the second quarter, Target expects low- to mid-single
digit growth in its comparable sales.
- The midpoint of Target's second quarter EPS guidance of
$1.52 to $1.72 represents high single digit growth
compared with prior year GAAP EPS from continuing operations and
double-digit growth compared with prior year Adjusted EPS.
- For the fiscal year, Target continues to expect a low- to
mid-single digit increase in comparable sales and both GAAP EPS and
Adjusted EPS of $5.75 to $6.05.
- For additional media materials, please
visit:
https://corporate.target.com/article/2019/05/q1-2019-earnings
Target Corporation (NYSE: TGT) today announced its first quarter
2019 performance, including first quarter comparable sales growth
of 4.8 percent driven by a 4.3 percent increase in comparable
traffic. The Company reported GAAP earnings per share (EPS)
from continuing operations of $1.53
in first quarter 2019, up 15.1 percent from $1.33 in first quarter 2018. First quarter
Adjusted EPS were $1.53, up 15.9
percent from $1.32 in first quarter
2018. The attached tables provide a reconciliation of non-GAAP to
GAAP measures. All earnings per share figures refer to diluted
EPS.
"Target had an outstanding first quarter, as our team delivered
a great experience for our guests and drove strong growth in
traffic, comparable sales, operating income and earnings per
share," said Brian Cornell, Chairman
and CEO of Target Corporation. "Over the last two years we have
made important investments to build a durable operating and
financial model that drives consumer relevance and sustainable
growth. Target's first quarter performance and market-share gains
demonstrate that the model is working. Throughout this year, we
will continue to extend the reach of our same-day fulfillment
options, strengthen our portfolio of owned and exclusive brands,
remodel and open more stores and invest in our team. We're
confident that we're well-positioned to deliver strong financial
performance in 2019 and beyond."
Second Quarter and Full-Year 2019 Guidance
Target expects second quarter comparable sales growth in the
low- to mid-single digit range, mid-single digit growth in
operating income dollars and both GAAP EPS from continuing
operations and Adjusted EPS of $1.52
to $1.72.
For full-year 2019, Target continues to expect a low- to
mid-single digit increase in comparable sales, a mid-single digit
increase in operating income, and both GAAP EPS from continuing
operations and Adjusted EPS of $5.75
to $6.05.
Second quarter and full-year 2019 GAAP EPS from continuing
operations may include the impact of certain discrete items which
will be excluded in calculating Adjusted EPS. The Company is not
currently aware of any such discrete items.
Operating Results
Total revenue of $17.6 billion
increased 5.0 percent from $16.8
billion last year, reflecting sales growth of 5.1 percent
combined with a 0.5 percent increase in other revenue.
First quarter sales growth of 5.1 percent reflected comparable
sales growth of 4.8 percent combined with the contribution from
non-mature stores. Comparable digital sales grew 42 percent,
contributing 2.1 percentage points to comparable sales
growth. Operating income was $1,135
million in first quarter 2019, up 9.0 percent from
$1,041 million in 2018.
First quarter operating income margin rate was 6.4 percent in
2019, compared with 6.2 percent in 2018. First quarter gross margin
rate was 29.6 percent, compared with 29.8 percent in 2018,
reflecting higher digital fulfillment and supply chain costs,
partially offset by the benefit of merchandising strategies. First
quarter SG&A expense rate was 20.8 percent in 2019, compared
with 21.1 percent in 2018. This performance reflected cost savings
in technology and a year-over-year timing benefit in marketing
expenses, combined with strong expense control across the Company
which offset continued pressure from wage growth.
Interest Expense and Taxes from Continuing Operations
The Company's first quarter 2019 net interest expense was
$126 million, compared with
$121 million last year. First quarter
2019 effective income tax rate from continuing operations was 22.4
percent, compared with 22.6 percent last year.
Shareholder Returns
The Company returned $608 million
to shareholders in first quarter 2019, including:
- Dividends of $330 million,
compared with $334 million in first
quarter 2018, reflecting a decline in share count partially offset
by a 3.2 percent increase in the dividend per share.
- Share repurchases totaling $277
million that retired 3.6 million shares of common stock at
an average price of $76.98.
At the end of the first quarter, the Company had approximately
$1.0 billion of remaining capacity
under its current $5 billion share
repurchase program.
For the trailing twelve months through first quarter 2019,
after-tax return on invested capital (ROIC) was 14.3 percent,
compared with 15.2 percent for the twelve months through first
quarter 2018. Excluding the discrete impacts of the Tax Cuts and
Jobs Act of 2017, ROIC was 14.1 percent for the trailing twelve
months ended May 4, 2019, compared
with 13.5 percent in the comparable prior-year period. See
the tables of this release for additional information about the
Company's ROIC calculation.
Conference Call Details
Target will webcast its first quarter earnings conference call
at 7:00 a.m. CDT today. Investors and
the media are invited to listen to the call at investors.target.com
(hover over "investors" then click on "events &
presentations"). A telephone replay of the call will be available
beginning at approximately 10:30 a.m.
CDT today through the end of business on May 24, 2019. The replay number is
866-419-8652.
Miscellaneous
Statements in this release regarding second quarter and
full-year 2019 earnings per share, operating income and comparable
sales guidance are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
statements are subject to risks and uncertainties which could cause
the Company's actual results to differ materially. The most
important risks and uncertainties are described in Item 1A of the
Company's Form 10-K for the fiscal year ended February 2, 2019. Forward-looking statements
speak only as of the date they are made, and the Company does not
undertake any obligation to update any forward-looking
statement.
About Target
Minneapolis-based Target
Corporation (NYSE: TGT) serves guests at more than 1,800 stores and
at Target.com. Since 1946, Target has given 5% of its profit to
communities, which today equals millions of dollars a week. For the
latest store count or for more information, visit
Target.com/Pressroom. For a behind-the-scenes look at Target, visit
Target.com/abullseyeview or follow @TargetNews on
Twitter.
TARGET
CORPORATION
|
|
Consolidated
Statements of Operations
|
|
|
|
Three Months Ended
|
|
|
(millions, except per share data) (unaudited)
|
|
May 4,
2019
|
|
May 5,
2018
|
|
Change
|
Sales
|
|
$
|
17,401
|
|
|
$
|
16,556
|
|
|
5.1
|
%
|
Other
revenue
|
|
226
|
|
|
225
|
|
|
0.5
|
|
Total
revenue
|
|
17,627
|
|
|
16,781
|
|
|
5.0
|
|
Cost of
sales
|
|
12,248
|
|
|
11,625
|
|
|
5.4
|
|
Selling, general and
administrative expenses
|
|
3,663
|
|
|
3,545
|
|
|
3.3
|
|
Depreciation and
amortization (exclusive of depreciation included in cost of
sales)
|
|
581
|
|
|
570
|
|
|
1.9
|
|
Operating
income
|
|
1,135
|
|
|
1,041
|
|
|
9.0
|
|
Net interest
expense
|
|
126
|
|
|
121
|
|
|
3.3
|
|
Net other
(income) / expense
|
|
(12)
|
|
|
(7)
|
|
|
67.0
|
|
Earnings from
continuing operations before income taxes
|
|
1,021
|
|
|
927
|
|
|
10.2
|
|
Provision for income
taxes
|
|
229
|
|
|
210
|
|
|
9.2
|
|
Net earnings from
continuing operations
|
|
792
|
|
|
717
|
|
|
10.5
|
|
Discontinued
operations, net of tax
|
|
3
|
|
|
1
|
|
|
|
Net
earnings
|
|
$
|
795
|
|
|
$
|
718
|
|
|
10.8
|
%
|
Basic earnings per
share
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1.54
|
|
|
$
|
1.34
|
|
|
15.1
|
%
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
|
Net earnings per
share
|
|
$
|
1.54
|
|
|
$
|
1.34
|
|
|
15.4
|
%
|
Diluted earnings
per share
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1.53
|
|
|
$
|
1.33
|
|
|
15.1
|
%
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
|
Net earnings per
share
|
|
$
|
1.53
|
|
|
$
|
1.33
|
|
|
15.4
|
%
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
Basic
|
|
515.7
|
|
|
536.9
|
|
|
(4.0)
|
%
|
Diluted
|
|
519.5
|
|
|
541.0
|
|
|
(4.0)
|
%
|
Antidilutive
shares
|
|
0.1
|
|
|
2.2
|
|
|
|
Dividends declared
per share
|
|
$
|
0.64
|
|
|
$
|
0.62
|
|
|
3.2
|
%
|
Note: Per share
amounts may not foot due to rounding.
|
TARGET
CORPORATION
|
|
Consolidated
Statements of Financial Position
|
|
(millions) (unaudited)
|
|
May 4,
2019
|
|
February 2,
2019
|
|
May 5,
2018
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,173
|
|
|
$
|
1,556
|
|
|
$
|
1,060
|
|
Inventory
|
|
9,060
|
|
|
9,497
|
|
|
8,652
|
|
Other current
assets
|
|
1,374
|
|
|
1,466
|
|
|
1,164
|
|
Total current
assets
|
|
11,607
|
|
|
12,519
|
|
|
10,876
|
|
Property and
equipment
|
|
|
|
|
|
|
Land
|
|
6,061
|
|
|
6,064
|
|
|
6,090
|
|
Buildings and
improvements
|
|
29,573
|
|
|
29,240
|
|
|
28,363
|
|
Fixtures and
equipment
|
|
5,401
|
|
|
5,912
|
|
|
5,135
|
|
Computer hardware and
software
|
|
2,553
|
|
|
2,544
|
|
|
2,511
|
|
Construction-in-progress
|
|
574
|
|
|
460
|
|
|
639
|
|
Accumulated
depreciation
|
|
(18,456)
|
|
|
(18,687)
|
|
|
(17,971)
|
|
Property and
equipment, net
|
|
25,706
|
|
|
25,533
|
|
|
24,767
|
|
Operating lease
assets
|
|
2,019
|
|
|
1,965
|
|
|
1,958
|
|
Other noncurrent
assets
|
|
1,287
|
|
|
1,273
|
|
|
1,328
|
|
Total
assets
|
|
$
|
40,619
|
|
|
$
|
41,290
|
|
|
$
|
38,929
|
|
Liabilities and
shareholders' investment
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
8,360
|
|
|
$
|
9,761
|
|
|
$
|
8,131
|
|
Accrued and other
current liabilities
|
|
3,823
|
|
|
4,201
|
|
|
3,630
|
|
Current portion of
long-term debt and other borrowings
|
|
1,056
|
|
|
1,052
|
|
|
283
|
|
Total current
liabilities
|
|
13,239
|
|
|
15,014
|
|
|
12,044
|
|
Long-term debt and
other borrowings
|
|
11,357
|
|
|
10,223
|
|
|
11,107
|
|
Noncurrent operating
lease liabilities
|
|
2,064
|
|
|
2,004
|
|
|
2,007
|
|
Deferred income
taxes
|
|
1,034
|
|
|
972
|
|
|
744
|
|
Other noncurrent
liabilities
|
|
1,808
|
|
|
1,780
|
|
|
1,869
|
|
Total noncurrent
liabilities
|
|
16,263
|
|
|
14,979
|
|
|
15,727
|
|
Shareholders'
investment
|
|
|
|
|
|
|
Common
stock
|
|
43
|
|
|
43
|
|
|
44
|
|
Additional paid-in
capital
|
|
5,908
|
|
|
6,042
|
|
|
5,664
|
|
Retained
earnings
|
|
5,958
|
|
|
6,017
|
|
|
6,187
|
|
Accumulated other
comprehensive loss
|
|
(792)
|
|
|
(805)
|
|
|
(737)
|
|
Total shareholders'
investment
|
|
11,117
|
|
|
11,297
|
|
|
11,158
|
|
Total liabilities
and shareholders' investment
|
|
$
|
40,619
|
|
|
$
|
41,290
|
|
|
$
|
38,929
|
|
Common Stock
Authorized 6,000,000,000 shares, $0.0833 par value; 512,312,434,
517,761,600 and 532,916,612 shares issued and outstanding at
May 4, 2019, February 2, 2019, and May 5, 2018,
respectively.
|
|
Preferred
Stock Authorized 5,000,000 shares, $0.01 par value; no shares
were issued or outstanding during any period presented.
|
TARGET
CORPORATION
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
Three Months
Ended
|
(millions) (unaudited)
|
|
May 4,
2019
|
|
May 5,
2018
|
Operating
activities
|
|
|
|
|
Net
earnings
|
|
$
|
795
|
|
|
$
|
718
|
|
Earnings from
discontinued operations, net of tax
|
|
3
|
|
|
1
|
|
Net earnings from
continuing operations
|
|
792
|
|
|
717
|
|
Adjustments to
reconcile net earnings to cash provided by operations
|
|
|
|
|
Depreciation and
amortization
|
|
644
|
|
|
631
|
|
Share-based
compensation expense
|
|
46
|
|
|
42
|
|
Deferred income
taxes
|
|
59
|
|
|
48
|
|
Noncash
losses / (gains) and other, net
|
|
10
|
|
|
40
|
|
Changes in operating
accounts
|
|
|
|
|
Inventory
|
|
438
|
|
|
(55)
|
|
Other
assets
|
|
17
|
|
|
26
|
|
Accounts
payable
|
|
(1,402)
|
|
|
(604)
|
|
Accrued and other
liabilities
|
|
(281)
|
|
|
(333)
|
|
Cash provided by
operating activities—continuing operations
|
|
323
|
|
|
512
|
|
Cash provided
by operating activities—discontinued operations
|
|
—
|
|
|
2
|
|
Cash provided by
operations
|
|
323
|
|
|
514
|
|
Investing
activities
|
|
|
|
|
Expenditures for
property and equipment
|
|
(655)
|
|
|
(827)
|
|
Proceeds from
disposal of property and equipment
|
|
5
|
|
|
4
|
|
Other
investments
|
|
1
|
|
|
5
|
|
Cash required for
investing activities
|
|
(649)
|
|
|
(818)
|
|
Financing
activities
|
|
|
|
|
Additions to
long-term debt
|
|
994
|
|
|
—
|
|
Reductions of
long-term debt
|
|
(13)
|
|
|
(12)
|
|
Dividends
paid
|
|
(330)
|
|
|
(334)
|
|
Repurchase of
stock
|
|
(320)
|
|
|
(524)
|
|
Accelerated share
repurchase pending final settlement
|
|
(400)
|
|
|
(425)
|
|
Stock option
exercises
|
|
12
|
|
|
16
|
|
Cash required for
financing activities
|
|
(57)
|
|
|
(1,279)
|
|
Net decrease in cash
and cash equivalents
|
|
(383)
|
|
|
(1,583)
|
|
Cash and cash
equivalents at beginning of period
|
|
1,556
|
|
|
2,643
|
|
Cash and cash
equivalents at end of period
|
|
$
|
1,173
|
|
|
$
|
1,060
|
|
TARGET
CORPORATION
|
|
Operating
Results
|
|
|
Three Months
Ended
|
Rate Analysis
(unaudited)
|
May 4,
2019
|
|
May 5,
2018
|
Gross margin
rate
|
29.6
|
%
|
|
29.8
|
%
|
SG&A expense
rate
|
20.8
|
|
|
21.1
|
|
Depreciation and
amortization (exclusive of depreciation included in cost of sales)
expense rate
|
3.3
|
|
|
3.4
|
|
Operating income
margin rate
|
6.4
|
|
|
6.2
|
|
Note: Gross
margin rate is calculated as gross margin (sales less cost of
sales) divided by sales. All other rates are calculated by dividing
the applicable amount by total revenue. Other revenue includes $160
million and $167 million of profit-sharing income under our credit
card program agreement for the three months ended May 4, 2019,
and May 5, 2018, respectively.
|
|
|
|
Three Months Ended
|
Comparable Sales
(unaudited)
|
May 4,
2019
|
|
May 5,
2018
|
Comparable sales
change
|
4.8
|
%
|
|
3.0
|
%
|
Drivers of change in
comparable sales
|
|
|
|
Number of
transactions
|
4.3
|
|
|
3.7
|
|
Average transaction
amount
|
0.5
|
|
|
(0.6)
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
Contribution to
Comparable Sales Change
(unaudited)
|
Three Months Ended
|
May 4,
2019
|
|
May 5,
2018
|
Stores channel
comparable sales change
|
2.7
|
%
|
|
1.9
|
%
|
Digital channel
contribution to comparable sales change
|
2.1
|
|
|
1.1
|
|
Total comparable
sales change
|
4.8
|
%
|
|
3.0
|
%
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
Three Months Ended
|
Sales by Channel
(unaudited)
|
May 4,
2019
|
|
May 5,
2018
|
Stores
originated
|
92.9
|
%
|
|
94.8
|
%
|
Digitally
originated
|
7.1
|
|
|
5.2
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
|
|
Three Months
Ended
|
REDcard
Penetration
(unaudited)
|
May 4,
2019
|
|
May 5,
2018
|
Target Debit
Card
|
13.1
|
%
|
|
13.5
|
%
|
Target Credit
Cards
|
10.4
|
|
|
10.6
|
|
Total REDcard
Penetration
|
23.5
|
%
|
|
24.1
|
%
|
Note: Amounts may not
foot due to rounding.
|
|
|
Number of Stores
and Retail Square Feet
(unaudited)
|
Number of
Stores
|
|
Retail Square Feet
(a)
|
May 4,
2019
|
February 2,
2019
|
May 5,
2018
|
|
May 4,
2019
|
February 2,
2019
|
May 5,
2018
|
170,000 or more sq.
ft.
|
272
|
|
272
|
|
274
|
|
|
48,603
|
|
48,604
|
|
48,951
|
|
50,000 to 169,999 sq.
ft.
|
1,501
|
|
1,501
|
|
1,502
|
|
|
188,918
|
|
188,900
|
|
189,258
|
|
49,999 or less sq.
ft.
|
78
|
|
71
|
|
53
|
|
|
2,276
|
|
2,077
|
|
1,477
|
|
Total
|
1,851
|
|
1,844
|
|
1,829
|
|
|
239,797
|
|
239,581
|
|
239,686
|
|
(a)
|
In thousands,
reflects total square feet less office, distribution center, and
vacant space.
|
TARGET CORPORATION
Reconciliation of Non-GAAP Financial Measures
To provide additional transparency, we have disclosed non-GAAP
adjusted diluted earnings per share from continuing operations
(Adjusted EPS). This metric excludes certain items presented below.
We believe this information is useful in providing period-to-period
comparisons of the results of our continuing operations. This
measure is not in accordance with, or an alternative to, generally
accepted accounting principles in the
United States (GAAP). The most comparable GAAP measure is
diluted earnings per share from continuing operations (GAAP EPS).
Adjusted EPS should not be considered in isolation or as a
substitution for analysis of our results as reported under GAAP.
Other companies may calculate Adjusted EPS differently, limiting
the usefulness of the measure for comparisons with other
companies.
|
|
Three Months
Ended
|
|
|
|
|
May 4,
2019
|
|
May 5,
2018
|
|
|
(millions, except
per share data) (unaudited)
|
|
Pretax
|
|
Net of Tax
|
|
Per Share
Amounts
|
|
Pretax
|
|
Net of Tax
|
|
Per Share
Amounts
|
|
Change
|
GAAP diluted earnings
per share from continuing operations
|
|
|
|
|
|
$
|
1.53
|
|
|
|
|
|
|
$
|
1.33
|
|
|
15.1
|
%
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax matters
(a)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5)
|
|
|
$
|
(0.01)
|
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
|
|
|
|
|
$
|
1.53
|
|
|
|
|
|
|
$
|
1.32
|
|
|
15.9
|
%
|
Note: Amounts
may not foot due to rounding.
|
(a)
|
Represents certain
income tax matters not related to current period
operations.
|
Earnings from continuing operations before interest expense and
income taxes (EBIT) and earnings before interest expense, income
taxes, depreciation and amortization (EBITDA) are non-GAAP
financial measures which we believe provide meaningful information
about our operational efficiency compared with our competitors by
excluding the impact of differences in tax jurisdictions and
structures, debt levels, and for EBITDA, capital investment. These
measures are not in accordance with, or an alternative to, GAAP.
The most comparable GAAP measure is net earnings from continuing
operations. EBIT and EBITDA should not be considered in isolation
or as a substitution for analysis of our results as reported under
GAAP. Other companies may calculate EBIT and EBITDA differently,
limiting the usefulness of the measure for comparisons with other
companies.
EBIT and
EBITDA
|
|
Three Months Ended
|
|
|
(millions) (unaudited)
|
|
May 4,
2019
|
|
May 5,
2018
|
|
Change
|
Net earnings from
continuing operations
|
|
$
|
792
|
|
|
$
|
717
|
|
|
10.5
|
%
|
+ Provision for
income taxes
|
|
229
|
|
|
210
|
|
|
9.2
|
|
+ Net interest
expense
|
|
126
|
|
|
121
|
|
|
3.3
|
|
EBIT
|
|
$
|
1,147
|
|
|
$
|
1,048
|
|
|
9.4
|
%
|
+ Total depreciation
and amortization (a)
|
|
644
|
|
|
631
|
|
|
2.0
|
|
EBITDA
|
|
$
|
1,791
|
|
|
$
|
1,679
|
|
|
6.6
|
%
|
(a)
|
Represents total
depreciation and amortization, including amounts classified within
Depreciation and Amortization and within Cost of Sales.
|
We have also disclosed after-tax return on invested capital from
continuing operations (ROIC), which is a ratio based on GAAP
information. We believe this metric is useful in assessing the
effectiveness of our capital allocation over time. Other companies
may calculate ROIC differently, limiting the usefulness of the
measure for comparisons with other companies.
After-Tax Return
on Invested Capital
|
|
|
|
|
(dollars in
millions) (unaudited)
|
|
|
|
|
|
|
|
|
Trailing Twelve
Months
|
|
|
|
|
Numerator
|
|
May 4,
2019
|
|
May
5, 2018
(a)
|
|
|
|
|
Operating
income
|
|
$
|
4,204
|
|
|
$
|
4,110
|
|
|
|
|
|
+ Net other income /
(expense)
|
|
33
|
|
|
51
|
|
|
|
|
|
EBIT
|
|
4,237
|
|
|
4,161
|
|
|
|
|
|
+ Operating lease
interest (b)
|
|
84
|
|
|
80
|
|
|
|
|
|
- Income taxes
(c)(d)
|
|
878
|
|
|
692
|
|
|
|
|
|
Net operating
profit after taxes
|
|
$
|
3,443
|
|
|
$
|
3,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator
|
|
May 4,
2019
|
|
May 5,
2018
|
|
April 29,
2017
|
Current portion of
long-term debt and other borrowings
|
|
$
|
1,056
|
|
|
$
|
283
|
|
|
$
|
1,729
|
|
+ Noncurrent portion
of long-term debt
|
|
11,357
|
|
|
11,107
|
|
|
10,916
|
|
+ Shareholders'
equity
|
|
11,117
|
|
|
11,158
|
|
|
10,979
|
|
+ Operating lease
liabilities (e)
|
|
2,231
|
|
|
2,157
|
|
|
2,049
|
|
- Cash and cash
equivalents
|
|
1,173
|
|
|
1,060
|
|
|
2,680
|
|
- Net assets of
discontinued operations (f)
|
|
—
|
|
|
—
|
|
|
17
|
|
Invested
capital
|
|
$
|
24,588
|
|
|
$
|
23,645
|
|
|
$
|
22,976
|
|
Average invested
capital (g)
|
|
$
|
24,116
|
|
|
$
|
23,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax return
on invested capital (d)
|
|
|
14.3
|
%
|
|
|
15.2
|
%
|
|
|
|
|
After-tax return
on invested capital excluding discrete impacts of Tax Act
(d)
|
|
|
14.1
|
%
|
|
|
13.5
|
%
|
|
|
|
|
(a)
|
Consisted of 53
weeks.
|
(b)
|
Represents the
add-back to operating income driven by the hypothetical interest
expense we would incur if the property under our operating leases
were owned or accounted for as finance leases. Calculated using the
discount rate for each lease and recorded as a component of rent
expense within SG&A Expenses. Operating lease interest is added
back to Operating Income in the ROIC calculation to control for
differences in capital structure between us and our
competitors.
|
(c)
|
Calculated using the
effective tax rates for continuing operations, which were 20.3
percent and 16.3 percent for the trailing twelve months ended
May 4, 2019, and May 5, 2018, respectively. For the
trailing twelve months ended May 4, 2019, and May 5,
2018, includes tax effect of $861 million and $679 million,
respectively, related to EBIT, and $17 million and $13 million,
respectively, related to operating lease interest.
|
(d)
|
The effective tax
rate for the trailing twelve months ended May 4, 2019, and
May 5, 2018, includes discrete tax benefits of $36 million and
$343 million related to the Tax Cuts and Jobs Act (Tax
Act).
|
(e)
|
Total short-term and
long-term operating lease liabilities included within Accrued and
Other Current Liabilities and Noncurrent Operating Lease
Liabilities.
|
(f)
|
Included in Other
Assets and Liabilities.
|
(g)
|
Average based on the
invested capital at the end of the current period and the invested
capital at the end of the comparable prior period.
|
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SOURCE Target Corporation