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|
Business Segment Results |
|
Three Months Ended October 29, 2011 |
|
Three Months Ended October 30, 2010 |
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
|
(millions) |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
|
Sales/Credit card revenues |
|
$ |
16,054 |
|
$ |
348 |
|
$ |
— |
|
$ |
16,402 |
|
$ |
15,226 |
|
$ |
379 |
|
$ |
— |
|
$ |
15,605 |
|
|
Cost of sales |
|
11,165 |
|
— |
|
— |
|
11,165 |
|
10,562 |
|
— |
|
— |
|
10,562 |
|
|
Bad debt expense(a) |
|
— |
|
40 |
|
— |
|
40 |
|
— |
|
110 |
|
— |
|
110 |
|
|
Selling, general and administrative/ Operations and marketing expenses(a), (b) |
|
3,433 |
|
143 |
|
18 |
|
3,594 |
|
3,319 |
|
114 |
|
— |
|
3,433 |
|
|
Depreciation and amortization |
|
525 |
|
4 |
|
17 |
|
546 |
|
529 |
|
5 |
|
— |
|
533 |
|
|
Earnings/(loss) before interest expense and income taxes |
|
931 |
|
161 |
|
(35) |
|
1,057 |
|
816 |
|
150 |
|
— |
|
967 |
|
|
Interest expense on nonrecourse debt collateralized by credit card receivables |
|
— |
|
18 |
|
— |
|
18 |
|
— |
|
20 |
|
— |
|
20 |
|
|
Segment profit/(loss) |
|
$ |
931 |
|
$ |
143 |
|
$ |
(35) |
|
$ |
1,039 |
|
$ |
816 |
|
$ |
130 |
|
$ |
— |
|
$ |
947 |
|
|
Unallocated (income) and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest expense |
|
|
|
|
|
|
|
184 |
|
|
|
|
|
|
|
175 |
|
|
Interest income |
|
|
|
|
|
|
|
(2) |
|
|
|
|
|
|
|
(1) |
|
|
Earnings before income taxes |
|
|
|
|
|
|
|
$ |
857 |
|
|
|
|
|
|
|
$ |
773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
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|
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|
Nine Months Ended October 29, 2011 |
|
Nine Months Ended October 30, 2010 |
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
|
(millions) |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
|
Sales/Credit card revenues |
|
$ |
47,529 |
|
$ |
1,048 |
|
$ |
— |
|
$ |
48,577 |
|
$ |
45,509 |
|
$ |
1,220 |
|
$ |
— |
|
$ |
46,729 |
|
|
Cost of sales |
|
32,874 |
|
— |
|
— |
|
32,874 |
|
31,267 |
|
— |
|
— |
|
31,267 |
|
|
Bad debt expense(a) |
|
— |
|
67 |
|
— |
|
67 |
|
— |
|
445 |
|
— |
|
445 |
|
|
Selling, general and administrative/ Operations and marketing expenses(a), (b) |
|
9,988 |
|
405 |
|
53 |
|
10,446 |
|
9,689 |
|
307 |
|
— |
|
9,997 |
|
|
Depreciation and amortization |
|
1,527 |
|
13 |
|
28 |
|
1,568 |
|
1,532 |
|
14 |
|
— |
|
1,545 |
|
|
Earnings/(loss) before interest expense and income taxes |
|
3,140 |
|
563 |
|
(81) |
|
3,622 |
|
3,021 |
|
454 |
|
— |
|
3,475 |
|
|
Interest expense on nonrecourse debt collateralized by credit card receivables |
|
— |
|
55 |
|
— |
|
55 |
|
— |
|
64 |
|
— |
|
64 |
|
|
Segment profit/(loss) |
|
$ |
3,140 |
|
$ |
508 |
|
$ |
(81) |
|
$ |
3,567 |
|
$ |
3,021 |
|
$ |
390 |
|
$ |
— |
|
$ |
3,411 |
|
|
Unallocated (income) and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest expense |
|
|
|
|
|
|
|
522 |
|
|
|
|
|
|
|
505 |
|
|
Interest income |
|
|
|
|
|
|
|
(3) |
|
|
|
|
|
|
|
(2) |
|
|
Earnings before income taxes |
|
|
|
|
|
|
|
$ |
3,048 |
|
|
|
|
|
|
|
$ |
2,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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(a) The combination of bad debt expense and operations and marketing expenses, less amounts reimbursed to the U.S. Retail Segment, within the U.S. Credit Card Segment represent credit card expenses on the Consolidated Statements of Operations.
(b) Loyalty Program discounts are recorded as reductions to sales in our U.S. Retail Segment. Effective with the October 2010 nationwide launch of our new 5% REDcard Rewards loyalty program, we changed the formula under which our U.S. Credit Card Segment reimburses our U.S. Retail Segment to better align with the attributes of the new program. In the three and nine months ended October 29, 2011, these reimbursed amounts were $74 million and $189 million compared with $26 million and $60 million in the corresponding periods in 2010. In all periods these amounts were recorded as reductions to SG&A expenses within the U.S. Retail Segment and increases to operations and marketing expenses within the U.S. Credit Card Segment.
Note: The sum of the segment amounts may not equal the total amounts due to rounding.
|
Total Assets by Segment |
|
|
|
|
|
|
|
|
(millions) |
|
October 29, 2011 |
|
January 29, 2011 |
|
October 30, 2010 |
|
|
U.S. Retail |
|
$ |
39,142 |
|
$ |
37,324 |
|
$ |
38,617 |
|
|
U.S. Credit Card |
|
5,978 |
|
6,381 |
|
6,332 |
|
|
Canadian |
|
3,327 |
|
— |
|
— |
|
|
Total |
|
$ |
48,447 |
|
$ |
43,705 |
|
$ |
44,949 |
|
|