|
11. Segment Reporting
Our segment measure of profit is used by management to evaluate the return on our investment and to make operating decisions.
|
Business Segment Results |
|
Three Months Ended July 28, 2012 |
|
Three Months Ended July 30, 2011 |
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
|
(millions) |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
|
Sales/Credit card revenues |
|
$ |
16,451 |
|
$ |
328 |
|
$ |
— |
|
$ |
16,779 |
|
$ |
15,895 |
|
$ |
345 |
|
$ |
— |
|
$ |
16,240 |
|
|
Cost of sales |
|
11,297 |
|
— |
|
— |
|
11,297 |
|
10,872 |
|
— |
|
— |
|
10,872 |
|
|
Bad debt expense(a) |
|
— |
|
43 |
|
— |
|
43 |
|
— |
|
15 |
|
— |
|
15 |
|
|
Selling, general and administrative/ Operations and marketing expenses(a), (b) |
|
3,468 |
|
139 |
|
47 |
|
3,653 |
|
3,382 |
|
137 |
|
25 |
|
3,544 |
|
|
Depreciation and amortization |
|
505 |
|
3 |
|
22 |
|
531 |
|
494 |
|
4 |
|
11 |
|
509 |
|
|
Earnings/(loss) before interest expense and income taxes |
|
1,181 |
|
143 |
|
(69 |
) |
1,255 |
|
1,147 |
|
189 |
|
(36 |
) |
1,300 |
|
|
Interest expense on nonrecourse debt collateralized by credit card receivables (c) |
|
— |
|
3 |
|
— |
|
3 |
|
— |
|
18 |
|
— |
|
18 |
|
|
Segment profit/(loss) |
|
$ |
1,181 |
|
$ |
140 |
|
$ |
(69 |
) |
$ |
1,252 |
|
$ |
1,147 |
|
$ |
171 |
|
$ |
(36 |
) |
$ |
1,282 |
|
|
Unallocated (income) and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other net interest expense (c) |
|
|
|
|
|
|
|
181 |
|
|
|
|
|
|
|
173 |
|
|
Earnings before income taxes |
|
|
|
|
|
|
|
$ |
1,071 |
|
|
|
|
|
|
|
$ |
1,109 |
|
|
Business Segment Results |
|
Six Months Ended July 28, 2012 |
|
Six Months Ended July 30, 2011 |
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
U.S. |
|
Credit |
|
|
|
|
|
|
(millions) |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
Retail |
|
Card |
|
Canadian |
|
Total |
|
|
Sales/Credit card revenues |
|
$ |
32,989 |
|
$ |
657 |
|
$ |
— |
|
$ |
33,646 |
|
$ |
31,475 |
|
$ |
700 |
|
$ |
— |
|
$ |
32,175 |
|
|
Cost of sales |
|
22,838 |
|
— |
|
— |
|
22,838 |
|
21,710 |
|
— |
|
— |
|
21,710 |
|
|
Bad debt expense(a) |
|
— |
|
95 |
|
— |
|
95 |
|
— |
|
27 |
|
— |
|
27 |
|
|
Selling, general and administrative/ Operations and marketing expenses(a), (b) |
|
6,762 |
|
271 |
|
81 |
|
7,114 |
|
6,554 |
|
262 |
|
36 |
|
6,852 |
|
|
Depreciation and amortization |
|
1,009 |
|
7 |
|
44 |
|
1,060 |
|
1,002 |
|
9 |
|
11 |
|
1,022 |
|
|
Earnings/(loss) before interest expense and income taxes |
|
2,380 |
|
284 |
|
(125 |
) |
2,539 |
|
2,209 |
|
402 |
|
(47 |
) |
2,564 |
|
|
Interest expense on nonrecourse debt collateralized by credit card receivables (c) |
|
— |
|
5 |
|
— |
|
5 |
|
— |
|
37 |
|
— |
|
37 |
|
|
Segment profit/(loss) |
|
$ |
2,380 |
|
$ |
279 |
|
$ |
(125 |
) |
$ |
2,534 |
|
$ |
2,209 |
|
$ |
365 |
|
$ |
(47 |
) |
$ |
2,527 |
|
|
Unallocated (income) and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other net interest expense (c) |
|
|
|
|
|
|
|
361 |
|
|
|
|
|
|
|
337 |
|
|
Earnings before income taxes |
|
|
|
|
|
|
|
$ |
2,173 |
|
|
|
|
|
|
|
$ |
2,190 |
|
Note: The sum of the segment amounts may not equal the total amounts due to rounding.
(a) The combination of bad debt expense and operations and marketing expenses, less amounts the U.S. Retail Segment charges the U.S. Credit Card Segment for loyalty programs, within the U.S. Credit Card Segment represent credit card expenses on the Consolidated Statements of Operations.
(b) Loyalty program charges were $74 million and $66 million for the three months ended July 28, 2012 and July 30, 2011, respectively, and $138 million and $115 million for the six months ended July 28, 2012 and July 30, 2011, respectively. 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.
(c) The combination of interest expense on nonrecourse debt collateralized by credit card receivables and other net interest expense represent net interest expense on the Consolidated Statements of Operations.
|
Total Assets by Segment |
|
July 28, |
|
January 28, |
|
July 30, |
|
|
(millions) |
|
2012 |
|
2012 |
|
2011 |
|
|
U.S. Retail |
|
$ |
37,724 |
|
$ |
37,108 |
|
$ |
36,823 |
|
|
U.S. Credit Card |
|
5,751 |
|
6,135 |
|
5,931 |
|
|
Canadian |
|
3,850 |
|
3,387 |
|
2,745 |
|
|
Total |
|
$ |
47,325 |
|
$ |
46,630 |
|
$ |
45,499 |
|
|