financial summary

2016 financial summary

  2016 2015 2014 2013 2012 (a)
Financial Results: (in millions)          
Sales (b) $69,495 $73,785 $72,618 $71,279 $73,301
Cost of sales 48,872 51,997 51,278 50,039 50,568
Gross Margin 20,623 21,788 21,340 21,240 22,733
Selling, general and administrative expenses (SG&A) 13,356 14,665 14,676 14,465 14,643
Credit card expenses 467
Depreciation and amortization 2,298 2,213 2,129 1,996 2,044
Gain on sale (c) (620) (391) (161)
Earnings from continuing operations before interest expense and income taxes (EBIT) 4,969 5,530 4,535 5,170 5,740
Net interest expense 1,004 607 882 1,049 684
Earnings from continuing operations before income taxes 3,965 4,923 3,653 4,121 5,056
Provision for income taxes 1,296 1,602 1,204 1,427 1,741
Net earnings from continuing operations 2,669 3,321 2,449 2,694 3,315
Discontinued operations, net of tax 68 42 (4,085) (723) (316)
Net earnings / (loss) $2,737 $3,363 $(1,636) $1,971 $2,999
Per Share:          
Basic earnings / (loss) per share          
Continuing operations $4.62 $5.29 $3.86 $4.24 $5.05
Discontinued operations 0.12 0.07 (6.44) (1.14) (0.48)
Net earnings / (loss) per share $4.74 $5.35 $(2.58) $3.10 $4.57
Diluted earnings / (loss) per share          
Continuing operations $4.58 $5.25 $3.83 $4.20 $5.00
Discontinued operations 0.12 0.07 (6.38) (1.13) (0.48)
Net earnings / (loss) per share $4.70 $5.31 $(2.56) $3.07 $4.52
Cash dividends declared $2.36 $2.20 $1.99 $1.65 $1.38
Financial Position: (in millions)          
Total assets $37,431 $40,262 $41,172 $44,325 $47,878
Capital expenditures (d) $1,547 $1,438 $1,786 $1,886 $2,345
Long-term debt, including current portion (d) $12,749 $12,760 $12,725 $12,494 $16,260
Net debt (d)(e) $11,639 $9,752 $11,205 $12,491 $16,185
Shareholders' investment $10,953 $12,957 $13,997 $16,231 $16,558
Segment Financial Ratios: (f)          
Comparable sales growth (g) (0.5)% 2.1% 1.3% (0.4)% 2.7%
Gross margin (% of sales) 29.7% 29.5% 29.4% 29.8% 29.7%
SG&A (% of sales) 19.2% 19.6% 20.0% 20.2% 19.1%
EBIT margin (% of sales) 7.1% 6.9% 6.5% 6.8% 7.8%
Other:          
Common shares outstanding (in millions) 556.2 602.2 640.2 632.9 645.3
Operating cash flow provided by continuing operations (in millions) (h) $5,329 $5,254 $5,157 $7,572 $5,615
Sales per square foot (d)(i) $290 $307 $302 $298 $299
Retail square feet (in thousands) (d) 239,502 239,539 239,963 240,054 237,847
Square footage growth (d) —% (0.2)% —% 0.9% 0.9%
Total number of stores (d) 1,802 1,792 1,790 1,793 1,778
Total number of distribution centers (d) 40 40 38 37 37
  1. (a) Consisted of 53 weeks.
  2. (b) The 2016 sales decline is primarily due to the Pharmacy Transaction. For 2012, includes credit card revenues.
  3. (c) For 2015, includes the gain on the Pharmacy Transaction. For 2013 and 2012, includes gains related to the sale of our U.S. credit card receivables portfolio.
  4. (d) Represents amounts attributable to continuing operations.
  5. (e) Including current portion and short-term notes payable, net of short-term investments of $1,110 million, $3,008 million, $1,520 million, $3 million, and $75 million in 2016, 2015, 2014, 2013, and 2012, respectively. Management believes this measure is an indicator of our level of financial leverage because short-term investments are available to pay debt maturity obligations.
  6. (f) Effective January 15, 2015, we operate as a single segment which includes all of our continuing operations, excluding net interest expense and the impact of certain other discretely managed items.
  7. (g) See definition of comparable sales in Form 10-K, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  8. (h) Prior year balances have been revised to reflect the impact of adopting ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, described further in Form 10-K, Item 8, Financial Statements and Supplementary Data, Note 26.
  9. (i) Represents sales per square foot which is calculated using rolling four quarters average square feet. The 2016 decrease is primarily due to the Pharmacy Transaction. Our former pharmacy and clinic businesses contributed approximately $16 to 2015 sales per square foot. In 2012, sales per square foot was calculated excluding the 53rd week in order to provide a more useful comparison to other years. Using total reported sales for 2012 (including the 53rd week) resulted in sales per square foot of $304.