Target : Calculation of Consolidated EBIT and EBITDA

calculation of EBIT and EBITDA

quarterly, fiscal 2016 to present (d)

Background

We have presented earnings from continuing operations before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation and amortization (EBITDA), non-GAAP financial measures, because we believe they provide investors with 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, generally accepted accounting principles in the United States (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.

				2019								2018								2017 (a)
(millions) (unaudited)		3Q		2Q		1Q			4Q		3Q		2Q		1Q			4Q (b)		3Q		2Q		1Q
Net earnings from continuing operations	$	706	$	938	$	792	$	798	$	616	$	799	$	717		$	1,088	$	476	$	670	$	675
+ Provision for income taxes		195		279		229			216		97		223		210			(76)		135		307		355
+ Net interest expense		113		120		126			110		115		115		121			131		251		131		140
Earnings from continuing operations before
interest expense and income taxes (EBIT)		1,014		1,337		1,147			1,124		828		1,137		1,048			1,143		862		1,108		1,170
+ Depreciation and amortization (c)		637		624		644			647		592		603		631			668		642		585		581
EBITDA	$	1,651	$	1,961	$	1,791	$	1,771	$	1,420	$	1,740	$	1,679		$	1,811	$	1,504	$	1,693	$	1,751
				2016 (a)
(millions) (unaudited)		4Q		3Q		2Q			1Q
Net earnings from continuing operations	$	823	$	608	$	624	$	612
+ Provision for income taxes		387		310		315			282
+ Net interest expense		137		138		304			411
Earnings from continuing operations before
interest expense and income taxes (EBIT)		1,347		1,056		1,243			1,305
+ Depreciation and amortization (c)		614		576		576			553
EBITDA	$	1,961	$	1,632	$	1,819	$	1,858

1. Beginning with the first quarter 2018, we adopted the new accounting standards for revenue recognition, leases, and pensions. We are presenting certain prior period results on a basis consistent with the new standards and conformed to the current period presentation. We provided additional information about the impact of the new accounting standards on previously reported financial information in a Form 8-K filed on May 11, 2018.
2. The fourth quarter 2017 consisted of 14 weeks compared with 13 weeks in the comparable periods presented.
3. Represents total depreciation, including amounts classified within Cost of Sales on our Consolidated Statements of Operations.
4. Additional information as previously reported is available under "summary financials" on investors.target.com.

Last Updated: 11/20/2019

calculation of EBIT and EBITDA

annual, fiscal 2015 to present (e)

(millions) (unaudited)		2018		2017 (a) (b)		2016 (a)		2015 (a) (c)
Net earnings from continuing operations	$	2,930	$	2,908	$	2,666	$	3,321
+ Provision for income taxes		746		722		1,295		1,602
+ Net interest expense		461		653		991		607
Earnings from continuing operations before
interest expense and income taxes (EBIT)		4,137		4,283		4,952		5,530
+ Depreciation and amortization (d)		2,474		2,476		2,318		2,213
EBITDA	$	6,611	$	6,759	$	7,270	$	7,743

1. Beginning with the first quarter 2018, we adopted the new accounting standards for revenue recognition, leases, and pensions. We are presenting certain prior period results on a basis consistent with the new standards and conformed to the current period presentation. We provided additional information about the impact of the new accounting standards on previously reported financial information in a Form 8-K filed on May 11, 2018.
2. 2017 consisted of 53 weeks compared with 52 weeks in the comparable periods presented.
3. Includes a $620 million gain on sale of our former pharmacy and clinic businesses.
4. Represents total depreciation, including amounts classified within Cost of Sales on our Consolidated Statements of Operations.
5. Additional information as previously reported is available under "summary financials" on investors.target.com.

Last Updated: 11/20/2019