TARGET CORPORATION calculation of after-tax return on invested capital (ROIC)
Numerator | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
(dollars in | Q3 (a) | Q2 (a) | Q1 (a) | Q4 (a) | ||||||||||||||||||||||||||||||||||
millions) (unaudited) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
Operating income | $ | 8,687 | $ | 8,611 | $ | 8,444 | $ | 6,539 | $ | 5,901 | $ | 4,968 | $ | 3,992 | $ | 4,658 | $ | 4,577 | $ | 4,395 | $ | 4,204 | $ | 4,110 | $ | 4,122 | $ | 4,150 | $ | 4,110 | $ | 4,224 | $ | 4,418 | $ | 4,601 | $ | 4,723 |
+ Net other income / | ||||||||||||||||||||||||||||||||||||||
(expense) | 358 | 346 | 350 | (16) | (46) | (28) | (26) | 9 | 45 | 42 | 33 | 27 | 35 | 41 | 51 | 59 | 69 | 80 | 93 | |||||||||||||||||||
EBIT | $ | 9,045 | $ | 8,957 | $ | 8,794 | $ | 6,523 | $ | 5,855 | $ | 4,940 | $ | 3,966 | $ | 4,667 | $ | 4,622 | $ | 4,437 | $ | 4,237 | $ | 4,137 | $ | 4,157 | $ | 4,191 | $ | 4,161 | $ | 4,283 | $ | 4,487 | $ | 4,681 | $ | 4,816 |
+ Operating lease | ||||||||||||||||||||||||||||||||||||||
interest (b) | 85 | 84 | 85 | 87 | 87 | 87 | 87 | 86 | 86 | 85 | 84 | 83 | 83 | 81 | 80 | 79 | 77 | 76 | 75 | |||||||||||||||||||
- Income taxes (c) | 1,947 | 1,918 | 1,864 | 1,404 | 1,277 | 1,076 | 855 | 1,045 | 1,043 | 937 | 878 | 856 | 524 | 589 | 692 | 867 | 1,413 | 1,564 | 1,633 | |||||||||||||||||||
Net operating profit | ||||||||||||||||||||||||||||||||||||||
after taxes | $ | 7,183 | $ | 7,123 | $ | 7,015 | $ | 5,206 | $ | 4,665 | $ | 3,951 | $ | 3,198 | $ | 3,708 | $ | 3,665 | $ | 3,585 | $ | 3,443 | $ | 3,364 | $ | 3,716 | $ | 3,683 | $ | 3,549 | $ | 3,495 | $ | 3,151 | $ | 3,193 | $ | 3,258 |
Denominator | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
(dollars in | Q3 (a) | Q2 (a) | Q1 (a) | Q4 (a) | ||||||||||||||||||||||||||||||||||
millions) (unaudited) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
Current portion of | ||||||||||||||||||||||||||||||||||||||
long-term debt | ||||||||||||||||||||||||||||||||||||||
and other | ||||||||||||||||||||||||||||||||||||||
borrowings | $ | 1,176 | $ | 1,190 | $ | 1,173 | $ | 1,144 | $ | 131 | $ | 109 | $ | 168 | $ | 161 | $ | 1,159 | $ | 1,153 | $ | 1,056 | $ | 1,052 | $ | 1,535 | $ | 1,044 | $ | 283 | $ | 281 | $ | 1,366 | $ | 1,365 | $ | 1,729 |
+ Noncurrent portion | ||||||||||||||||||||||||||||||||||||||
of long-term debt | 11,586 | 11,589 | 11,509 | 11,536 | 12,490 | 14,188 | 14,073 | 11,338 | 10,513 | 10,365 | 11,357 | 10,223 | 10,104 | 10,108 | 11,107 | 11,117 | 11,090 | 10,706 | 10,916 | |||||||||||||||||||
+ Shareholders' | ||||||||||||||||||||||||||||||||||||||
equity | 13,803 | 14,860 | 14,959 | 14,440 | 13,319 | 12,578 | 11,169 | 11,833 | 11,545 | 11,836 | 11,117 | 11,297 | 11,080 | 11,167 | 11,158 | 11,651 | 11,092 | 11,055 | 10,979 | |||||||||||||||||||
+ Operating lease | ||||||||||||||||||||||||||||||||||||||
liabilities (d) | 2,737 | 2,695 | 2,563 | 2,429 | 2,400 | 2,448 | 2,448 | 2,475 | 2,390 | 2,285 | 2,231 | 2,170 | 2,208 | 2,183 | 2,157 | 2,072 | 2,041 | 2,032 | 2,049 | |||||||||||||||||||
- Cash and cash | ||||||||||||||||||||||||||||||||||||||
equivalents | 5,753 | 7,368 | 7,816 | 8,511 | 5,996 | 7,284 | 4,566 | 2,577 | 969 | 1,656 | 1,173 | 1,556 | 825 | 1,180 | 1,060 | 2,643 | 2,725 | 2,291 | 2,680 | |||||||||||||||||||
- Net assets of | ||||||||||||||||||||||||||||||||||||||
discontinued | ||||||||||||||||||||||||||||||||||||||
operations | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 4 | 10 | 17 | |||||||||||||||||||
Invested capital | $ | 23,549 | $ | 22,966 | $ | 22,388 | $ | 21,038 | $ | 22,344 | $ | 22,039 | $ | 23,292 | $ | 23,230 | $ | 24,638 | $ | 23,983 | $ | 24,588 | $ | 23,186 | $ | 24,102 | $ | 23,322 | $ | 23,645 | $ | 22,478 | $ | 22,860 | $ | 22,857 | $ | 22,976 |
Average invested | ||||||||||||||||||||||||||||||||||||||
capital (e) | $ | 22,947 | $ | 22,502 | $ | 22,840 | $ | 22,134 | $ | 23,491 | $ | 23,011 | $ | 23,940 | $ | 23,208 | $ | 24,369 | $ | 23,652 | $ | 24,116 | $ | 22,832 | $ | 23,481 | $ | 23,090 | $ | 23,310 | $ | 22,690 | $ | 23,601 | $ | 23,639 | $ | 23,582 |
ROIC | 31.3 % | 31.7 % | 30.7 % | 23.5 % | 19.9 % | 17.2 % | 13.4 % | 16.0 % | 15.0 % | 15.2 % | 14.3 % | 14.7 % | 15.8 % | 16.0 % | 15.2 % | 15.4 % | 13.4 % | 13.5 % | 13.8 % |
- The trailing 12 months ended November 3, 2018, August 4, 2018, May 5, 2018, and February 3, 2018 consisted of 53 weeks compared with 52 weeks in the comparable periods presented.
- Represents the add-back to operating income to reflect 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 expense.
- Calculated using the effective tax rate for continuing operations.
- Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.
- 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.
- The effective tax rate for the trailing twelve months ended November 2, 2019, August 3, 2019, May 4, 2019, February 2, 2019, November 3, 2018, August 4, 2018, May 5, 2018, and February 3, 2018, includes discrete tax benefits of the Tax Cuts and Jobs Act (Tax Act). The effective tax rate for these periods also includes the impact of the new lower federal income tax rate.
Last Updated: 11/17/2021
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Target Corporation published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 11:47:09 UTC.
