Part 1: 1. What was Target's net income for the year ended January 30, 2016? 2. Did Target's net income increase or decrease from FYE 1/30/15 to FYE 1/30/16, and by how much 3. What was Target's accounting equation on 1/30/16? 4. Which of the following had the largest percentage change from FYE 1/30/15 to FYE 1/30/16: net sales; cost of sales; or selling, general, and administrative expenses? Show all computations. Part 2 1. Which accounts on Target's balance sheet are accrual-type accounts? 2. Which accounts on Target's balance sheet are deferral-type accounts? 3. Compare Target's 2015 net earnings (the year ended January 30, 2016) to its 2015 cash provided by operating activities. Which is larger? 4. First, compare Target's 2014 net income to its 2015 net income. Next, compare Target's 2014 cash provided by operating activities to its 2015 cash provided by operating activities. Which changed the most from 2014 to 2015, net earnings or cash provided by operating activities? 5. Why did Target's net earnings change so much from 2014 to 2015? Part 3: 1. What percentage of Target's total revenues end up as net earnings? 2. What percentage of Target's sales go to pay for the costs of the goods being sold? 3. What costs does Target include in its Cost of Sales account? 4. When does Target recognize revenue from the sale of gift cards? Part 4 en wat percentage omagees Sacs go to pay for the costs or 3. What costs does Target include in its Cost of Sales account? 4. When does Target recognize revenue from the sale of gift cards? Part 4: 1. What percentage of Target's total assets was comprised of inventory? 2. What cost flow method did Target use to account for its inventory? 3. Target had arrangements with some of its vendors such that it does not purchase or pay for merchandise inventory until the merchandise is sold to outside customers. Was the cost of these goods ever included in the Inventory account? Part 5: 1. What method of depreciation does Target use? 2. What types of intangible assets does Target have? 3. What are the estimated lives that Target uses for the various types of long-term assets? 4. As of January 30, 2016, what is the original cost of Target's Land; Buildings and improvements; and Fixtures and equipment? 5. What was Target's depreciation expense and amortization expense for 2015 (see the footnotes)? Part 6: 1. What percentage of Target's assets was being financed with liabilities versus shareholder's equity? 2. How does Target account for bank overdrafts, and how much overdrafts did it have as of January 30, 2016? 3. What was the average interest rate that Target paid on its borrowings? 4. Target reported Accrued and Other liabilities of $4,236 as of January 30, 2016. What was the largest subcategory of liabilities included in this account? Tune here to search chegg.com/homework-help/questions-and-answers/part-1-target-s-net-income-year- Booz Allen Sites W Yahoo Login | National Uni.. Connect - Class: Ac... NATIONAL U Chegg Study Textbook Solutions Expert Q&A Study Pack Practice PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and issuer Purchases of Equity Securities Our common stock is listed on the New York Stock Exchange under the symbol "TGT." We are authorized to issue up to 6,000,000,000 shares of common stock, par value $0.0833, and up to 5,000,000 shares of preferred stock, par value $0.01. At March 2, 2017, there were 15,067 shareholders of record. Dividends declared per share and the high and low closing common stock price for each fiscal quarter during 2016 and 2015 are disclosed in Note 31 of the Financial Statements. On January 11, 2012, our Board of Directors authorized the repurchase of $5 billion of our common stock and on June 9, 2015 expanded the program by an additional $5 billion for a total authorization of $10 billion. On September 20, 2016, our Board of Directors authorized a new $5 billion share repurchase program. We began repurchasing shares under this new authorization during the fourth quarter of 2016 upon completion of the previous $10 billion program. There is no stated expiration for the share repurchase programs. Under these programs, we repurchased 50.9 million shares of common stock in fiscal 2016, at an average price of $72.35, for a total investment of $3.7 billion. The table below presents Information with respect to Target common stock purchases made during the three months ended January 28, 2017, by Target or any affiliated purchaser of Target, as defined in Rule 10b-18(X3) under the Exchange Act. Dollar Value of Average Total Number of Shares that May Total Number Shares Purchased Yet Be Purchased of Shares as part of Publicly Under Publicly Period Purchased Announced Programs Announced Programs October 30, 2016 through November 25, 2016 Open market and privately negotiated purchases 802412 $ 67.23 802,412 $ 5,210,467,654 September 2016 ASR 1,286,423 67.67 1,286,423 5.246,730,198 November 27, 2016 through December 31, 2016 Open market and privately negotiated purchases 5.246,730,198 December 2016 ASR 4,618,451 7 6.77 4,618,451 4,892,156,933 January 1, 2017 through January 28, 2017 Open market and privately negotiated purchases 2,362,745 66.27 2,362,745 4.735,572.452 9,070,031 $ 71.90 9.070.031 $ 4.735 572,452 Represents the incremental shares received upon final settlement of the accelerated share repurchase agreement (ASR) initiated in third quarter 2016. Tot Type here to search Booz Allen Sites W NATION, Yahoo O Login | National Uni... Connect - Class: Ac... Chegg Study Textbook Solutions Expert Q&A Study Pack Pract Comparison of Cumulative Five Year Total Return 250 Target -- S&P 500 Index -- Poor Group Dollars 2012 2013 2014 2015 2016 2017 Fiscal Years Ended Januar 2012 Februaz? Februari January's January 2016 danuary 2 $ Target S&P 500 Index Peer Group 100.00 $ 100.00 100.00 124.97 $ 117.61 127.43 118.53 $ 141.49 154.12 158.98 1 61.61 191.03 160.89 $ 160.54 208.03 146.0 194.0 231.5 The graph above compares the cumulative total shareholder return on our common stock for the last five fiscal yea with the cumulative total return on the S&P 500 Index and a peer group consisting of 18 online, general merchandis department store, food, and specialty retailers, which are large and meaningful competitors (Amazon.com, Inc., Be Buy Co., Inc., Costco Wholesale Corporation, CVS Health Corporation, Dollar General Corporation, The Gap, Ing The Home Dennt in Kann Cameration The morn Comi c Maan Buured Madel Type here to search Bt we e Booz Allen Sites W Yahoo Login | National Uni... Connect - Class: AC... @ NATIONAL U Chegg Study Textbook Solutions Expert Q&A Study Pack Practice (millions, except per share data) As of or for the Fiscal Year Ended 2016 2015 2014 2013 2012 $ 69,495 $ 73,785 $ 72,618 $ 71,279 $ 73,301 Sales 2,669 68 2,737 3,321 42 3,363 2,449 (4,085) (1,636) 2,694 (723) 1,971 3,315 (316) 2.999 5.05 Net Earnings /(Loss) Continuing operations Discontinued operations Net earnings / (loss) Basic Earnings /(Loss) Per Share Continuing operations Discontinued operations Basic eamings/loss) per share Diluted Earnings /(Loss) Per Share Continuing operations Discontinued operations Diluted earnings /(loss) per share Cash dividends declared per share 4.62 0.12 4.74 5.29 0.07 3.86 (6.44) (2.58) 4.24 (1.14) 3.10 5.35 4.57 5.00 4.58 0.12 4.70 2.36 5.25 0.07 5.31 2.20 3.83 (6.38) (2.56) 1.99 4.20 (1.13) 3.07 1.65 (0.48) 4.52 1.38 41,172 12,725 44,325 12,494 47,878 16,260 Total assets 37,431 40.262 Long-term debt, including current portion 12,749 12,760 Note: This information should be read in conjunction with MDSA and the Financial Statements. Consisted of 53 weeks. For 2012, includes credit card revenues. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Executive Summary Fiscal 2016 Included the following notable items: . GAAP earnings per share from continuing operations were $4.58. Adjusted earings per share were $5.01. Comparable sales decreased 0.5 percent, reflecting a 0.8 percent decrease in traffic. . Comparable digital channel sales growth of 27 percent contributed 1.0 percentage points of comparable sales growth Type here to search Biwi e CHICCO C ONJUJU PULJUCURYLO Booz Allen Sites | Yahoo Login | National Uni... Connect - Class: Ac... NATIONALU Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Earnings Per Share From Percent Change Continuing Operations 2016 2015 2014 2016/2015 2015/2014 GAAP diluted earings per share $ 4.58 $ 5.25 $ 3.83 (12.73% 37,2% Adjustments 0.42 (0.56) 0.39 Adjusted diluted earnings per share $ 5.01 $ 4.69 $ 4.22 6.7 % 11.3% Note: Amounts may not foot due to rounding. Adjusted dated eamings per share from continuing operations (Adjusted EPS), a non-GAAP metric, excludes the impact of certain tems not related to our routine retail operations Management believes that Adjusted EPS is meaningful to provide period-to-period comparisons of our operating results. A reconciliation of non-GAAP financial measures to GAAP measures is provided on page 21. We report after-tax return on invested capital (ROIC) from continuing operations because we believe ROIC provides a meaningful measure of our capital-allocation effectiveness over time. For the trailing twelve months ended January 28, 2017 ROIC was 15.0 percent, compared with 16.0 percent for the trailing twelve months ended January 30, 2016. Excluding the net gain on the Pharmacy Transaction, ROIC was 13.9 percent for the trailing twelve months ended January 30, 2016. A reconciliation of ROIC is provided on page 22 Analysis of Results of Operations Segment Results Percent Change (dollars in millions) 2016 2015 2014 2016/2015 2015/2014 Sales 69,495 $ 73,785 $ 72,618 (5.8)% Cost of sales 48,872 51,997 51.278 (6.0) Gross margin 20,623 21,788 21,340 (5.4) SG&A expenses 13,360 14,448 14,503 (75) EBITDA 7,263 7,340 6,837 (1.1) Depreciation and amortization 2,298 2,213 2,129 3.8 EBIT $ 4.965 $ 5.127 $ 4.708 (3.2)% 8.9% Note See Note 30 of our Financial Statements for a reconciliation of our segment results to earnings before income taxes and more information about items recorded outside of segment SGSA Sales include $3.815 million and $4,148 million related to our former pharmacy and clinic businesses for 2015 and 2014, respectively, and cost of sales include $3,076 million and $3,222 milion, respectively. The sale of these businesses had no notable impact on EBITDA or EBIT For 2016, 2015, and 2014, SG&A includes $063 million, 5641 milion, and 5620 million, respectively, of net profit sharing income from the arrangement with TD. ype here to search 0 Bt wie e 03 chegg.com/homework-help/questions-and-answers/part-1-target-s-net-income-year-e Booz Allen Sites W Yahoo Login | National Uni... Connect - Class: AC... NATIONAL UN Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Rate Analysis 2016 2015 2014 Gross margin rate 29.7% 29.5% 29.4% SG&A expense rate 19.2 19.6 20.0 EBITDA margin rate 10.5 9.9 9.4 Depreciation and amortization expense rate 3.3 3.0 2.9 EBIT margin rate 6.9 Note: Rate analysis metrics are computed by dividing the applicable amount by sales Excluding sales of our former pharmacy and clinic businesses, EBITDA margin rates were 10.5 percent and 10.0 percent for 2015 and 2014, respectively, and EBIT margin rates were 7.3 percent and 6.9 percent, respectively 7.1 6.5 Sales Sales include all merchandise sales, net of expected returns, and gift card breakage. Refer to Note 2 of the Financial Statements for a definition of gift card breakage. Digital channel sales include all sales initiated through mobile applications and our conventional websites. Digital channel sales may be fulfilled through our distribution centers, our vendors, or our stores. The decrease in 2016 sales reflects a decrease of approximately $3,815 million due to the Pharmacy Transaction and comnarahlo ales darrean of naman nantially feat with contribution fon t os Thincens 2015 Type here to search Biwi e B e 03 - LL. PL Booz Allen Sites Yahoo O Login | National Uni... Connect - Class: AC. NATIONAL UN chegg Study Textbook Solutions Expert Q&A Study Pack Practice Sales by Channel 2016 2015 2014 Stores 95.6% 96.6% 97.4% Digital 4.4 3.4 2.6 Total 100% 100% 100% Excluding sales of our former pharmacy and clinic businesses, stores and digital channels sales were 96.4 percent and 3.6 percent of total sales, respectively, for 2015 and 97.2 and 2.8 percent of total sales, respectively, for 2014 Comparable sales is a measure that highlights the performance of our existing stores and digital channel sales by measuring the change in sales for a period over the comparable, prior-year period of equivalent length. Comparable sales include all sales, except sales from stores open less than 13 months, digital acquisitions we have owned less than 13 months, stores that have been closed, and digital acquisitions that we no longer operate. We removed pharmacy and clinic sales from the 2015 sales amounts when calculating 2016 comparable sales. Comparable sales measures vary across the retail industry. As a result, our comparable sales calculation is not necessarily comparable to similarly titled measures reported by other companies. 2014 2016 (0.5)% 2015 2.1% 1.3% Comparable Sales Comparable sales change Drivers of change in comparable sales: Number of transactions Average transaction amount (0.8) 0.3 1.3 0.8 (0.2) 2014 0.7% Contribution to comparable Sales Change Stores channel comparable sales change Digital channel contribution to comparable sales change Total comparable sales change Note: Amounts may not foot due to rounding. 2016 (1.51% 1.0 (0.5% 2015 1.3% 0.8 2.1% 0.7 1.3% ype here to search ORL wie B ou Chegu.CUM TUMEWUIR reipuuestions d 'answers portugu HCL CUM yale Booz Allen Sites W Yahoo O Login National Uni.. Connect - Class: AC... NATIONALUL Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Sales by Product Category Percentage of Sales 2016 2015 2014 Food, beverage, and pet supplies 22 21 21 Home furnishings and decor 1917 17 Total 100% 100% 100% Includes pharmacy, beauty, personal care, baby care, cleaning, and paper products. Pharmacy represented 5 percent and 6 percent in 2015 and 2014, respectively Includes dry grocery, dairy frozen food, beverages, candy, snacks, del, bakery, meat, produce, and pot supplies Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as intimate apparel, jewelry, accessories, and shoes Includes furniture, lighting, Kitchenware, small appliances, home decor, bed and bath, home improvement, automotive, and seasonal merchandise such as patio furniture and holiday decor Includes electronics (including video game hardware and software), music, movies, books, computer software, sporting goods, and toys. Further analysis of sales metrics is infeasible due to the collective interaction of a broad array of macroeconomic, competitive, and consumer behavioral factors, as well as sales mix and transfer of sales to new stores. TD offers credit to qualified guests through Target-branded credit cards: the Target Credit Card and the Target MasterCard Credit Card (Target Credit Cards). Additionally, we offer a branded proprietary Target Debit Card. Collectively, we refer to these products as REDcards. Guests receive a 5 percent discount on virtually all purchases and free shipping at Target.com when they use a REDcard. We monitor the percentage of sales that are paid for using REDcards (REDcard Penetration) because our internal analysis has indicated that a meaningful portion of incremental purchases on our REDcards are also incremental sales for Target. REDcard Penetration 2016 2015 2014 Target Credit Cards 112 11.2 10.1 9.7 Note: Excluding pharmacy and dinic sales, total REDcard penetration would have been 23.2 percent and 21.9 percent for 2015 and 2014 respectively. The sum of Target Credit Cards and Target Debit Card penetration may not equal Total REDcard Penetration due to rounding. Gross Margin Rate Type here to search At wie De op chegg.com/homework-help/questions and answers/part-1-target-s-net-income-year-end Booz Allen Sites Yahoo Login | National Uni... Connect - Class: AC. NATIONAL UNI Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Gross Margin Rate Our gross margin rate was 29.7 percent in 2016, 29.5 percent in 2015 and 29.4 percent in 2014. The 2016 increase was primarily due to the Pharmacy Transaction and favorable category sales mix, partially offset by increased shipping and digital fulfillment costs. Cost of goods savings helped offset the impact of a competitive promotional environment. The 2015 increase was primarily due to favorable category sales mix and lower promotional activity relative to the highly promotional period in 2014 following the 2013 data breach, partially offset by the impact of increased digital channel sales. Selling, General and Administrative Expense Rate Type here to search w e o e on chegg.com/homework-help/questions and answers/part-1-target-s-net-income-year-e Booz Allen Sites W Yahoo O Login | National Uni.. Connect - Class: AC... NATIONALU Chegg Study Textbook Solutions Expert Q&A Study Pack Practice The 2015 increase was primarily due to favorable category sales mix and lower promotional activity relative to the highly promotional period in 2014 following the 2013 data breach partially offset by the impact of increased digital channel sales Selling, General and Administrative Expense Rate Our SG&A expense rate was 19.2 percent in 2016, 19.6 percent in 2015 and 20.0 percent in 2014. The decrease in 2016 primarily resulted from the benefit of the Pharmacy Transaction and technology-related cost savings, partially offset by increased stores hourly payroll. The decrease in 2015 primarily resulted from cost saving initiatives and reduced marketing expense, partially offset by Investments in other initiatives, none of which were individually significant Store Data 2016 2015 1.792 1,790 Change in Number of Stores Beginning store count Opened Closed Ending store count (5) 1.802 2 (13) ,792 1 Type here to search chegg.com/homework-help/questions-and-answers/part-1-target-s-net-income-year Booz Allen Sites Yahoo O Login | National Uni.. Connect - Class: AC. NATIONAL Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Number of Stores and Number of Stores Retail Square Feet January 28, January 30, 2017 2016 170,000 or more sq.ft 276 278 50,000 to 169,999 sq.ft 1,504 1,505 49.999 or less sq. ft. 22 9 Total 1,802 1,792 in thousands, reflects total square foot less office, distribution center and vacant space Retail Square Feet January 28, January 30, 2017 2016 49,328 49.688 189,620 189,677 554 174 239,502 239,539 Other Performance Factors Other Selling. General and Administrative Expenses We recorded $(4) million, 5216 million, and $174 million of selling, general and administrative expenses outside of the segment during 2016, 2015, and 2014, respectively, because they relate to discretely managed matters. Additional Information about these discretely managed items is provided within Note 30 of the Financial Statements Net Interest Expense Net interest expense from continuing operations was $1,004 million, 5607 million, and $882 million for 2016, 2015 and 2014, respectively. Not interest expense for 2016 and 2014 included a loss on early retirement of debt of $422 million and $285 million, respectively. Provision for Income Taxes ype here to search we a Booz Allen Sites W Yahoo O Login | National Uni... Connect - Class: AC. NATIONAL UN Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Net Interest Expense Net interest expense from continuing operations was $1,004 million, $607 million, and $882 million for 2016. 2015. and 2014, respectively. Net interest expense for 2016 and 2014 included a loss on early retirement of debt of $422 million and $285 million, respectively. Provision for Income Taxes Our 2016 effective income tax rate from continuing operations increased to 32.7 percent, from 32.5 percent in 2015. driven primarily by the 2015 rate impact of the $112 million tax benefit from releasing the valuation allowance on a capital loss. This comparative rate impact was partially offset by $27 million of excess tax benefit in 2016 related to share-based payments after the adoption of Accounting Standards Update (ASU) No 2016-09, Improvements to Employee Share-Based Payment Accounting, and lower pretax earnings. Note 23 of the Financial Statements provides a tax rate reconciliation Our 2015 effective Income tax rate from continuing operations decreased to 32.5 percent, from 33.0 percent in 2014, driven primarily by the $112 million tax benefit from releasing the valuation allowance on a capital loss. This benefit was partially offset by a year-over year decrease in the favorable resolution of various income tax matters and the rate impact of higher pretax comings. The resolution of various income tax matters reduced tax expense by $8 million and $35 million in 2015 and 2014, respectively Discontinued Operations See Note 7 of the Financial Statements for information about our Canada exit. Reconciliation of Non-GAAP Financial Measures to GAAP 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 comparison 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 earings per share from continuing operations. 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 than we do, limiting the usefulness of the measure for comparisons with other companies 2016 2014 Netof milions, except per share data) Share Putxertak Amount Prata Amount Prats Amounts DBL wie Hoe 04 Type here to search Booz Allen Sites W Yahoo O Login National Uni... Connect - Class: AC. NATIONAL U Chegg Study Textbook Solutions Expert Q&A Study Pack Practice 2016 2015 Per Per 11 Per Net of Share Net of Share Net of (millons, except per share data) Pret Tax Amounts Pretax Tax Amounts Pretax Tax Amounts GAAP diluted earnings per share from continuing operations $ 4.58 $ 5.25 3.83 Adjustments Loss on early retirement of debt $ 422 $ 257 $ 0.44 $ - $ - S - $ 285 $ 173 $ 0.27 Gain on sale (620) (487) (0.77) - Restructuring costs 87 0.14 Data breach-plated costs, net of Insurance 28 0.04 94 0.15 Other 4) (2) 39 29 0 .05 0.03 Resolution of income tax matters (7) (0.01) (8) (0.01) (35) (0.06) Adjusted diluted earnings per share from continuing operations $ 5.01 $ 4.69 Note: Amounts may not foot due to rounding Refer to Note 6 of the Financial Statements Refer to Note 8 of the Financial Statements Refer to Note 19 of the Financial Statements For 2016, represents toms related to the Pharmacy Transaction. For 2015, represents impairments related to our decision to wind down certain noncore operations, as described in Note 16 of the Financial Statements. The 2014 amounts indude impairments of $16 million related to undeveloped and in the U.S. and $13 million of expense related to converting co-branded card program to MasterCard. We have also disclosed after-tax return on invested capital for continuing operations (ROIC), which is a ratio based on GAAP information, with the exception of adjustments made to capitalize operating leases. Operating leases are capitalized as part of the ROIC calculation to control for differences in capital structure between us and our competitors. We believe this metric provides a meaningful measure of the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently than we do, limiting the usefulness of the measure for comparisons with other companies. ype here to search BI w] e B e o HOOL Atenes a noo Logmahal Uni... Connect - Class: AL... U NATUNA Chegg Study Textbook Solutions Expert Q&A Study Pack Practie After-Tax Return on invested Capital Numerator Trailing Twelve Months January 28 January $ 4,969 $ 71 5,530 87 dollar in m ans) Earnings from continuing operations before interest expense and income taxes + Operating lease interest Adjusted earnings from continuing operations before interest expense and income taxes -Income taxes Net operating profit after taxes 5,040 1,648 3,392 5,617 1,827 3,790 $ $ January 3 January $ 815 91 Denominator dernos Current portion of long-term debt and other borrowings -Noncurrent portion of long-term debt + Shareholders' equity + Capitalized operating lease obligations - Cash and cash equivalents - Net assets of discontinued operations Invested capital Average Invested capital January, 28 1,718 11,031 10,953 1.187 2,512 62 $ 22,315 $ 22,608 11,945 12,957 1.457 4,046 226 22,902 23,713 12,634 13,997 1.490 2.210 1.479 24,523 $ $ $ After-tax return on invested capital 15.0% 16.0% Represents the add back to operating income driven by the hypothetical interest expense we would incur the property under our operating lases were owned or accounted for a capital es, using eight times our rating twelve months rent expense and an estimated interest rate of sx percent. See the following Reconciliation of Capitalized Operating Losses table for the adjustments to our GAAP totalrent expense to obtain the hypothetical capitalization of operating leases and related operating lease interest Calculated using the effective tax rate for continuing operations, which was 32.7 percent and 32.5 percent for the trailing twelve months ended January 28, 2017 and January 30, 2016. For the twelve months anded January 28, 2017 and January 30, 2016, includes tax affect of $1,624 million and $1.799 million, respectively related to EBIT and 323ion and 28 mion, respectively related to operating lease Ca d a mes our trang wave months ont expense Arre d on the invested capital the end of the current period and the invested capital at the end of the prior period Excluding the nation the Train ROC fai m oaded 2016 Type here to search I wie B Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Reconciliation of Capitalized Operating Leases Trailing Twelve Months JanuaryJanuarzo January $ $ (dollars in millions) Total rent expense Capitalized operating lease obligations (total rent expense x 8) Operating lease interest (capitalized operating lease obligations x 6%) 148 1,187 182 1.457 87 186 1,490 na Analysis of Financial Condition Liquidity and Capital Resources Our period-end cash and cash equivalents balance decreased to $2,512 million from $4,046 million in 2015. primarily reflecting deployment during 2016 of proceeds from the Pharmacy Transaction and payment of related taxes. Due to the timing of the sale late in 2015, we did not fully deploy the net proceeds by the end of 2015. Short-term investments of $1,110 million and $3,008 million were included in cash and cash equivalents at the end of 2016 and 2015, respectively. Our investment policy is designed to preserve principal and liquidity of our short-term investments. This policy allows Investments in large money market funds or in highly rated direct short-term instruments that mature in 60 days or less. We also place dollar limits on our investments in individual funds or instruments. Capital Allocation We follow a disciplined and balanced approach to capital allocation based on the following priorities, ranked in order of importance: first, we fully invest in opportunities to profitably grow our business, create sustainable long-term value, and maintain our current operations and assets, second, we maintain a competitive quarterly dividend and seek to grow it annually, and finally, we return any excess cash to shareholders by repurchasing shares within the limits of our credit rating goals. Cash Flows Our 2016 operations were funded by internally and externally generated funds. Operating cash flow provided by continuing operations was $5,329 million in 2016 compared with $5.254 million in 2015. These cash flows, combined with period year-end cash position, allowed us to invest in the business, fund early debt retirement and maturities, pay dividends, and repurchase shares under our share repurchase program. Proceeds from the Pharmacy Transaction are included in investing cash flows provided by continuing operations during 2015, Inventory Type here to search Btwie - De 02 Chegg'Study Textbook Solutions Expert Q&A Study Pack Practice Inventory Year-end inventory was $8,309 million, compared with $8,601 million in 2015. The decrease was due to our alignment of Inventory levels with the slowing sales trend while appropriately supporting instocks. Share Repurchases During 2016, 2015, and 2014 we returned $3,686 million, $3.441 million, and $41 million, respectively, to shareholders through share repurchase. See Part II, Item 5 of this Annual Report on Form 10-K and Note 25 to the Financial Statements for more information Dividends We paid dividends totaling $1,348 million ($2.32 per share) in 2016 and $1,362 million ($2.16 per share) in 2015, a per share increase of 7.4 percent. We declared dividends totaling $1,359 million ($2.36 per share) in 2016, a per share increase of 7.3 percent over 2015. We declared dividends totaling $1,378 million ($2.20 per share) in 2015, a per share increase of 10.6 percent over 2014. We have paid dividends every quarter since our 1967 initial public offering, and it is our intent to continue to do so in the future. Short-term and Long-term Financing Our financing strategy is to ensure liquidity and access to capital markets, maintain a balanced spectrum of debt maturities, and manage our net exposure to floating interest rate volatility. Within these parameters, we seek to minimize our borrowing costs. Our ability to access the long-term debt and commercial paper markets has provided us with ample sources of liquidity. Our continued access to these markets depends on multiple factors, including the condition of debt capital markets, our operating performance, and maintaining strong credit ratings. As of January 28, 2017 our credit ratings w as follows Type here to search O tw] e Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Moody's Standard and Poor's Fitch Credit Ratings Long-term debt Commercial paper A2 P.1 A-1 F2 If our credit ratings were lowered, our ability to access the debt markets, our cost of funds, and other terms for new debt issuances could be adversely impacted. Each of the credit rating agencies reviews its rating periodically and there is no guarantee our current credit ratings will remain the same as described above. In 2016, we funded our peak holiday sales period working capital needs through internally generated funds and the issuance of commercial paper. In 2015, we funded our peak holiday sales period working capital needs through internally generated funds. 2015 2016 89 $- Commercial Paper (dollars in millions) Maximum daily amount outstanding during the year Average amount outstanding during the year Amount outstanding at year-end Weighted average interest rate 2014 590 129 0.43% 0.11% We have additional liquidity through a committed $2.5 billion revolving credit facility obtained through a group of banks in October 2016 which expires in October 2021. This new unsecured revolving credit facility replaced a $2.25 billion unsecured revolving credit facility that was scheduled to expire in October 2018. No balances were outstanding under either credit facility at any time during 2016, 2015, or 2014 Most of our long-term debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants. Additionally, at January 28, 2017, no notes or debentures contained provisions requiring acceleration of payment upon a credit rating downgrade, except that certain outstanding notes allow the note holders to put the notes to us if within a matter of months of each other we experience both (i) a change in control and (ii) our long-term credit ratings are either reduced and the resulting rating is non-investment grade, or our long-term credit ratings are placed on watch for possible reduction and those ratings are subsequently reduced and the resulting rating is non-investment grade. We believe our sources of liquidity will continue to be adequate to maintain operations, finance anticipated expansion and strategic initiatives, fund debt maturities, pay dividends, and execute purchases under our share repurchase program for the foreseeable future. We continue to anticipate ample access to commercial paper and long-term financing ype here to search Otwie De 04 chegg.com/homework-help/questions and answers/part-1-target-s-net-income-year-en Booz Allen Sites W Yahoo Login National Uni E Connect - Class: AC... NATIONAL UM Chegg. Study Textbook Solutions Expert Q&A Study Pack Practice Capital Expenditures $2.000 $1.785 $1.547 $1,438 $587 Existing store investments $1,072 $ (Milions) New stores (a) $500 $381 Information technology, supply chain, and other 2016 2015 2014 (a) In addition to these cash investments, we entered into leases related to new stores in 2016, 2015, and 2014 with totalture minimum lease payments of $550 million, $335 million, and $85 million, respectively Capital expenditures increased in 2016 from the prior year because we increased our investments in existing stores, including remodels and guest experience enhancements. These increases were partially offset by continued efficiency gains in technology. Capital expenditures decreased in 2015 from the prior year as we opened fewer large-format stores and realized efficiency gains in technology, partially offset by increased guest experience and supply chain investments. As noted in the footnote to the chart presented above, we substantially increased our investments in leases in 2016 and 2015. We expect capital expenditures in 2017 to increase to approximately $2.0 billion to $2.5 billion as we accelerate the rate of store remodels and flexible format store openings, and continue to make supply chain investments. We also expect our rate of investment in store leases to continue to increase. Type here to search w] e a e os theyy.com/ EWUIR lepiquesuulis diludliswers/part diyetle m e yeden Booz Allen Sites W Yahoo O Login National Uni... Connect - Class: AC... NATIONAL UNL Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Commitments and Contingencies 3 398 198 609 107 216 31 Contractual Obligations as of Payments Due by Period January 28, 2017 Less than 1-3 3-5 After 5 (millions) Total 1 Year Years Years Years Recorded contractual obligations: Long-term debt $ 11,814 S 1,683 $ 1,203 $ 2,150 $ 6,778 Capital lease obligations 1.963 174 178 1,529 Deferred compensation 515 121224 Real estate liabilities Tax contingencies Unrecorded contractual obligations: Interest payments - long-term debt 6,308 819 710 4,269 Operating leases 3,876 364 2,916 Purchase obligations 1,762 814 232 Real estate obligations 185 Future contributions to retirement plans Contractual obligations $ 26,506 $ 3,375 $ 3,553 $ 3,630 $ 15,948 Represents principal payments only. See Note 20 of the Financial Statements for further information These payments also include $348 million and $269 million of legally binding minimum lease payments for stores that are expected to open in 2017 or later for capital and operating lases, respectively. See Note 22 of the Financial Statements for further information The timing of deferred compensation payouts is estimated based on payments currently made to former employees and retirees, forecasted Investment retums, and the projected timing of future retirements Real estate abities include costs incurred but not paid related to the construction or remodeling of real estate and facilities Estimated tax contingencies of $222 million, including interest and penalties and primarily related to continuing operations, are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement. See Note 23 of the Financial Statements for further information Purchase obligations include all legally binding contracts such as fimm minimum commitments for inventory purchases, merchandise royalties, equipment purchases, marketing-related contracts, software acquisition license commitments, and service contracts. We issue Inventory purchase orders in the normal course of business, which represent authorizations to purchase that are cancelable by the terms. We do not consider purchase orders to be firm inventory commitments, therefore, they are excluded from the table above. If we choose to cancel a purchase order, we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation We also issue trade letters of credit in the ordinary course of business, which are excluded from this table as these obligations are conditioned on terms of the letter of credit being met Real estate obligations include commitments for the purchase, construction, or remodeling of real estate and facilities. We have not included obligations under our pension plans in the contractual obligations table above because no additional amounts are required to be funded as of January 28, 2017. Our Historical practice regarding these plans has been to contribute amounts necessary to satisfy minimum pension funding requirements, plus periodic discretionary amounts determined to be appropriate ype here to search I w] e o e Booz Allen Sites y Yahoo O Login | National Uni... Connect - Class: AC. NATIONAL UM Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Of Balance Sheet Arrangements: Other than the unrecorded contractual obligations noted above, we do not have any arrangements or relationships with entities that are not consolidated into the financial statements. Critical Accounting Estimates Our consolidated financial statements are prepared in accordance with GAAP, which requires us to make estimates and apply judgments that affect the reported amounts. In the Notes to Consolidated Financial Statements, we describe the significant accounting policies used in preparing the consolidated financial statements. Our management has discussed the development, selection, and disclosure of our critical accounting estimates with the Audit & Finance Committee of our Board of Directors. The following items require significant estimation or judgment: Inventory and cost of sales: Our inventory is valued at the lower of cost or market. We reduce Inventory for estimated losses related to shrink and markdowns. Our shrink estimate is based on historical losses verified by physical inventory counts. Historically, our actual physical Inventory count results have shown our estimates to be reliable. Market adjustments for markdowns are recorded when the salability of the merchandise has diminished. We believe the risk of inventory obsolescence is largely mitigated because our inventory typically turns in less than three months. Inventory was $8,309 million and $8,601 million at January 28, 2017 and January 30, 2016, respectively, and is further described in Note 12 of the Financial Statements. Vendor income: We receive various forms of consideration from our vendors (vendor income). principally eamed as a result of volume rebates, markdown allowances, promotions, and advertising allowances. Substantially all vendor income is recorded as a reduction of cost of sales. We establish a receivable for vendor income that is eamed but not yet received. Based on the agreements in place, this receivable is computed by estimating when we have completed our performance and when the amount is earned. The majority of the year-end vendor income receivables are collected within the following fiscal quarter, and we do not believe there is a reasonable likelihood that the assumptions used in our estimate will change significantly Historically adjustments to our vendor income receivable have not been material. Vendor income receivable was $385 million and $384 million at January 28, 2017 and January 30, 2016, respectively. Vendor income is described further in Note 4 of the Financial Statements. ype here to search Booz Allen Sites y Yahoo Login | National Uni... Connect - Class: AC. NATIONAL UN Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Our 2016 expected long-term rate of return on plan assets of 6.8 percent is determined by the portfolio composition, historical long-term investment performance, and current market conditions. A one percentage point decrease in our expected long-term rate of return would increase annual expense by $37 million. The discount rate used to determine benefit obligations is adjusted annually based on the interest rate for long-term high-quality corporate bonds, using yields for maturities that are in line with the duration of our pension liabilities. Our benefit obligation and related expense will fluctuate with changes in interest rates. A 0.5 percentage point decrease to the weighted average discount rate would increase annual expense by $30 million. Based on our experience, we use a graduated compensation growth schedule that assumes higher compensation growth for younger, shorter-service pension-eligible team members than it does for older, longer-service pension- eligible team members. Pension benefits are further described in Note 28 of the Financial Statements. Legal and other contingencies: We believe the accruals recorded in our consolidated financial statements properly reflect loss exposures that are both probable and reasonably estimable. We do not believe any of the currently identified claims or litigation may materially affect our results of operations, cash flows, or financial condition. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, it may cause a material adverse impact on the results of operations, cash flows, or financial condition for the period in which the ruling occurs, or future periods. Refer to Note 19 of the Financial Statements for further information on contingencies New Accounting Pronouncements Refer to Note 2 and Note 22 of the Financial Statements for a description of new accounting pronouncements related to revenues and leases, respectively. We do not expect any other recently issued accounting pronouncements will have a material effect on our financial statements. Forward-Looking Statements This report contains forward-looking statements, which are based on our current assumptions and expectations. These statements are tunirally accompanied by the word "amertem could hellen Su m at anticiantes Type here to search 0 Bt w] e B e o Booz Allen Sites y Yahoo Login | National Uni... Connect - Class: AC... NATIONAL UN Chegg Study Textbook Solutions Expert Q&A Study Pack Practice LIBOR-plus fared to our floatiments by approcentage point Item TA. Quantitative and Qualitative Disclosures About Market Risk At January 28, 2017, our exposure to market risk was primarily from interest rate changes on our debt obligations, some of which are at a LIBOR-plus floating-rate. Our interest rate exposure is primarily due to differences between our floating rate debt obligations compared to our floating rate short term investments. At January 28, 2017, our floating rate debt exceeded our floating rate short-term investments by approximately $140 million. Based on our balance sheet position at January 28, 2017, the annualized effect of a 0.1 percentage point increase in floating interest rates on our floating rate debt obligations, net of our floating rate short-term investments, would not be significant. In general, we expect our floating rate debt to exceed our floating rate short-term investments over time, but that may vary in different interest rate environments. See further description of our debt and derivative Instruments in Notes 20 and 21 to the Financial Statements. We record our general liability and workers' compensation liabilities at net present value; therefore, these liabilities fluctuate with changes in interest rates. Based on our balance sheet position at January 28, 2017, the annualized effect of a 0.5 percentage point decrease in interest rates would be to decrease eamings before income taxes by $7 million In addition, we are exposed to market retum fluctuations on our qualified defined benefit pension plans. The value of our pension liabilities is inversely related to changes in interest rates. A 0.5 percentage point decrease to the weighted average discount rate would increase annual expense by $30 million. To protect against declines in interest rates, we hold high-quality, long-duration bonds and interest rate swaps in our pension plan trust. At year-end, we had hedged 55 percent of the interest rate exposure of our funded status. As more fully described in Notes 15 and 27 to the Financial Statements, we are exposed to market returns on accumulated team member balances in our nonqualified, unfunded deferred compensation plans. We control the risk of offering the nonqualified plans by making investments in life insurance contracts and prepaid forward contracts on our own common stock that offset a substantial portion of our economic exposure to the returns on these plans. The annualized effect of a one percentage point change in market returns on our nonqualified defined contribution plans (inclusive of the effect of the investment vehicles used to manage our economic exposure) would not be significant. There have been no other material changes in our primary risk exposures or management of market risks since the prior year. ype here to search Dwie oe om Booz Allen Sites y Yahoo O Login | National Uni... - Connect - Class: Ac... NATIONAL U Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Consolidated Statements of Operations 2016 69,495 $ 48,872 20,623 13,356 2,298 2015 73,785 $ 51,997 21,788 14,665 2,213 (620) 2014 72,618 51,278 21,340 14,676 2,129 4,969 1,004 3,965 1,296 2,669 68 2,737 $ 5,530 607 4,923 1.602 3,321 4,535 882 3,653 1,204 2.449 (4,085) (1,636) 42 $ 3,363 $ (millions, except per share data) Sales Cost of sales Gross margin Selling, general and administrative expenses Depreciation and amortization Gain on sale Earnings from continuing operations before interest expense and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) Basic earnings /(loss) per share Continuing operations Discontinued operations Net earnings/(loss) per share Diluted earnings /(loss) per share Continuing operations Discontinued operations Net earnings/(loss) per share Weighted average common shares outstanding Basic Dilutive effect of share-based awards Diluted Antidilutive shares Dividends declared per share Note: Per share amounts may not foot due to rounding. See accompanying Notes to Consolidated Financial Statements. 4.62 $ 0.12 4.74 $ 5.29 $ 0.07 5.35 $ 3.86 (6.44) (2.58) $ 4.58 $ 0.12 4.70 $ 5.25 $ 0.07 5.31 $ 3.83 (6.38) (2.56) $ 577.6 4.9 582.5 0.1 2.36 $ 627.7 5.2 632.9 634.7 5.4 640.1 3.3 $ 2.20 $ 1.99 ype here to search 8t wie B Booz Allen Sites W Yahoo O Login National Uni... Connect - Class: AC. NATIONALU Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Consolidated Statements of Comprehensive Income $ 2016 2,737 $ 2015 3,363 S 2014 (1,636) (millions) Net Income/(loss) Other comprehensive (loss)/income, net of tax Pension and other benefit liabilities, net of tax benefit of $9, $18, and $90 Currency translation adjustment and cash flow hedges, net of provision for taxes of $2. $2, and $2 Other comprehensive (loss) /income Comprehensive income/loss) (13) (27) (139) (9) 2,728 $ (3) (30) 3,333 $ 431 292 (1.344) $ See accompanying Notes to Consolidated Financial Statements. Type here to search Dat we aeg Booz Allen Sites Yahoo O Login | National Uni. Connect - Class: AC... NATIONAL UN Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Consolidated Statements of Financial Position January 28, January 2016 $ 2,512 $ 8,309 69 4,046 8,601 322 1,161 14,130 1.100 11,990 (millions, except footnotes) Assets Cash and cash equivalents, including short-term investments of $1,110 and $3,008 Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities 6,106 27,611 5,503 2,651 200 (17,413) 24,658 6,125 27,059 5,347 2,617 315 (16,246) 25,217 771 37,431 $ 840 40.262 $ 7,252 $ 3,737 1,718 7,418 4.236 815 153 12,708 11,031 861 12,622 11,945 823 18 1,860 1,897 Type here to search i wo e chegg.com/homework-help/questions-and-answers/part-1-target-s-net-income-year-el Booz Allen Sites W Yahoo O Login National Uni.. Connect - Class: AC... NATIONAL UM Chegg Study Textbook Solutions Expert Q&A Study Pack Practice 18 Liabilities and shareholders' investment Accounts payable 7,252 $ 7,418 Accrued and other current liabilities 3,737 4,236 Current portion of long-term debt and other borrowings 1,718 815 Liabilities of discontinued operations 153 Total current liabilities 12,708 12,622 Long-term debt and other borrowings 11,031 11,945 Deferred income taxes 861 823 Noncurrent liabilities of discontinued operations 18 Other noncurrent liabilities 1,860 1,897 Total noncurrent liabilities 13.770 14.683 Shareholders' investment Common stock Additional paid-in capital 5,661 5,348 Retained earings 5,884 8,188 Accumulated other comprehensive loss Pension and other benefit liabilities (601) (588) Currency translation adjustment and cash flow hedges (41) Total shareholders' investment 10.953 12,957 Total liabilities and shareholders Investment S 37.431 40.262 Common Stock Authorized 6,000,000,000 shares $0.0833 par value: 556,156,228 shares issued and outstanding at January 28, 2017;602, 228,517 shares issued and outstanding at January 30, 2016. Preferred Stock Authorized 5,000,000 shares $0.01 par value; no shares were issued or outstanding at January 28, 2017 or January 30, 2016. See accompanying Notes to Consolidated Financial Statements (37) pe here to search w] e a e - OP Booz Allen Sites W Yahoo O Login | National Uni... Connect - Class: AC. NATIONAL U Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Consolidated Statements of Cash Flows 2016 2015 2014 2.737 $ 3.363 $ (1.536) (4 085) 2,669 3,321 2.449 2.298 113 2213 115 (322 (620) 422 57 293 (316) (115) (543) 5.329 227 579 5.254 millions) Operating activities Net earnings / loss) Earnings / losses) from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net oamings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains) /losses and other, net Changes in operating accounts: Inventory Other assets Accounts payable and accrued liabilities Cash provided by operating activities continuing operations Cash provided by required for operating activities discontinued operats Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Cash paid for acquisitions, net of cash assumed Other investments Cash (required for provided by investing activities continuing operation Cash provided by required for investing activities discontinued operations Cash required for provided by Investing activities Financing activities Change in commercial paper, net Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net (decreaso)/Increase in cash and cash equivalents Cash and casheuvent at besinning of nariad 5.436 5.958 (1.547) (1.438) (1,786) 1,575 (20) (1.473) (1473) (1.926) (80) 1.977 2.541) (1.348) 3.706) 221 (5,497) (1,534) 406 (85) (1.362) (3,483) 300 (4,630) 1,836 2210 1,993 (2.079) (1.205) (26) 373 (1,024) 1,515 Type here to search Btwe at Was Target's Online Rajasthan University X | Chegg Tutors Online Tuto x chegg.com/homework-help/questions-and-answers/part-1-target-s-net-income-year- Booz Allen Sites y Yahoo O Login | National Uni. E Connect - Class: AC... NATIONAL Chegg Study Textbook Solutions Expert Q&A Study Pack Practice (1.4733 (85) (1.362) (3.483) Other investments Cash required to provided by ng ac c ording Cash provided by required for investing acties Cash required for provided by investing act Financing activities Change in commercial paper.net Addition to long