TARGET CORP | 2013 | FY | 3

Quarterly Results (Unaudited)

Due to the seasonal nature of our business, fourth quarter operating results typically represent a substantially larger share of total year revenues and earnings because they include our peak sales period from Thanksgiving through the end of December. We follow the same accounting policies for preparing quarterly and annual financial data. The table below summarizes quarterly results for 2013 and 2012:

Quarterly Results
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Total Year
(millions, except per share data)
2013

2012

 
2013

2012

 
2013

2012

 
2013

2012 (a)

 
2013

2012 (a)

Sales
$
16,706

$
16,537

 
$
17,117

$
16,451

 
$
17,258

$
16,601

 
$
21,516

$
22,370

 
$
72,596

$
71,960

Credit card revenues
—

330

 
—

328

 
—

328

 
—

356

 
—

1,341

Total revenues
16,706

16,867

 
17,117

16,779

 
17,258

16,929

 
21,516

22,726

 
72,596

73,301

Cost of sales
11,563

11,541

 
11,745

11,297

 
12,133

11,569

 
15,719

16,160

 
51,160

50,568

Selling, general and administrative expenses
3,590

3,392

 
3,698

3,588

 
3,853

3,704

 
4,235

4,229

 
15,375

14,914

Credit card expenses
—

120

 
—

108

 
—

106

 
—

135

 
—

467

Depreciation and amortization
536

529

 
542

531

 
569

542

 
576

539

 
2,223

2,142

Gain on receivables transaction
(391
)
—

 
—

—

 
—

(156
)
 
—

(5
)
 
(391
)
(161
)
Earnings before interest expense and income taxes
1,408

1,285

 
1,132

1,255

 
703

1,164

 
986

1,668

 
4,229

5,371

Net interest expense
629

184

 
171

184

 
165

192

 
161

204

 
1,126

762

Earnings before income taxes
779

1,101

 
961

1,071

 
538

972

 
825

1,464

 
3,103

4,609

Provision for income taxes
281

404

 
350

367

 
197

335

 
305

503

 
1,132

1,610

Net earnings
$
498

$
697

 
$
611

$
704

 
$
341

$
637

 
$
520

$
961

 
$
1,971

$
2,999

Basic earnings per share
$
0.78

$
1.05

 
$
0.96

$
1.07

 
$
0.54

$
0.97

 
$
0.82

$
1.48

 
$
3.10

$
4.57

Diluted earnings per share
0.77

1.04

 
0.95

1.06

 
0.54

0.96

 
0.81

1.47

 
3.07

4.52

Dividends declared per share
0.36

0.30

 
0.43

0.36

 
0.43

0.36

 
0.43

0.36

 
1.65

1.38

Closing common stock price:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
High
70.67

58.86

 
73.32

61.95

 
71.99

65.44

 
66.89

64.48

 
73.32

65.44

Low
60.85

50.33

 
68.29

54.81

 
62.13

60.62

 
56.64

58.57

 
56.64

50.33

Note: Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and all other quarterly amounts may not equal the total year due to rounding.
(a) 
The fourth quarter and total year 2013 consisted of 13 weeks and 52 weeks, respectively, compared with 14 weeks and 53 weeks in the comparable prior-year periods.

U.S. Sales by Product Category (a)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Total Year
 
2013

2012

 
2013

2012

 
2013

2012

 
2013

2012

 
2013

2012

Household essentials
27
%
26
%
 
27
%
27
%
 
26
%
26
%
 
22
%
21
%
 
25
%
25
%
Hardlines
15

16

 
15

15

 
15

14

 
24

24

 
18

18

Apparel and accessories
20

20

 
20

20

 
20

20

 
17

18

 
19

19

Food and pet supplies
22

21

 
20

20

 
21

21

 
19

18

 
21

20

Home furnishings and décor
16

17

 
18

18

 
18

19

 
18

19

 
17

18

Total
100
%
100
%
 
100
%
100
%
 
100
%
100
%
 
100
%
100
%
 
100
%
100
%
(a) 
As a percentage of sales.

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