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2018 financial summary

  2018 2017
as adjusted (a)(b)		 2016
as adjusted (b)		 2015
as adjusted (b)		 2014 (b)
Financial Results (in millions)          
Sales (c) $74,433 $71,786 $69,414 $73,717 $72,618
Other revenue 923 928 857 777 —
Total revenue 75,356 72,714 70,271 74,494 72,618
Cost of sales 53,299 51,125 49,145 52,241 51,506
Selling, general and administrative expenses (SG&A) 15,723 15,140 14,217 15,406 14,676
Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,224 2,225 2,045 1,969 1,901
Operating income 4,110 4,224 4,864 4,878 4,535
Net interest expense (d) 461 653 991 607 882
Net other (income) / expense (e) (27) (59) (88) (652) —
Earnings from continuing operations before income taxes 3,676 3,630 3,961 4,923 3,653
Provision for income taxes (f) 746 722 1,295 1,602 1,204
Net earnings from continuing operations 2,930 2,908 2,666 3,321 2,449
Discontinued operations, net of tax 7 6 68 42 (4,085)
Net earnings / (loss) $2,937 $2,914 $2,734 $3,363 $(1,636)
Per Share
Basic earnings / (loss) per share
Continuing operations $5.54 $5.32 $4.61 $5.29 3.86
Discontinued operations 0.01 0.01 0.12 0.07 (6.44)
Net earnings / (loss) per share $5.55 $5.32 $4.73 $5.35 $(2.58)
Diluted earnings / (loss) per share
Continuing operations $5.50 $5.29 $4.58 $5.25 $3.83
Discontinued operations 0.01 0.01 0.12 0.07 (6.38)
Net earnings / (loss) per share $5.51 $5.29 $4.69 $5.31 $(2.56)
Cash dividends declared $2.54 $2.46 $2.36 $2.20 $1.99
Financial Position (in millions)
Total assets $41,290 $40,303 $38,724 $40,262 $41,172
Capital expenditures (g) $3,516 $2,533 $1,547 $1,438 $1,786
Long-term debt, including current portion (g) $11,275 $11,398 $12,591 $12,760 $12,725
Net debt (g)(h) $10,506 $10,267 $11,481 $9,752 $11,205
Shareholders' investment $11,297 $11,651 $10,915 $12,957 $13,997
Financial Ratios (g)
Comparable sales growth (i) 5.0% 1.3% (0.5)% 2.1% 1.3%
Gross margin (% of sales) 28.4% 28.8% 29.2% 29.1% 29.1%
SG&A (% of total revenue) 20.9% 20.8% 20.2% 20.7% 20.0%
Operating income margin (% of total revenue) 5.5% 5.8% 6.9% 6.5% 6.2%
Other
Common shares outstanding (in millions) 517.8 541.7 556.2 602.2 640.2
Operating cash flow provided by continuing operations (in millions) $5,970 $6,861 $5,337 $5,254 $5,157
Revenue per square foot (g)(j) $314 $298 $293 $310 $302
Retail square feet (in thousands) (g) 239,581 239,355 239,502 239,539 239,963
Square footage growth (g) 0.1% (0.1)% —% (0.2)% —%
Total number of stores (g) 1,844 1,822 1,802 1,792 1,790
Total number of distribution centers (g) 40 41 40 40 38
  1. Consisted of 53 weeks.
  2. The financial summary data for fiscal years 2017, 2016, and 2015 reflect the adoption of Accounting Standards Update (ASU) No. 2014-09—Revenue from Contracts with Customers (Topic 606). The financial summary data for fiscal years 2017 and 2016 reflect the adoption of Accounting Standards Update (ASU) No. 2016-02—Leases (Topic 842). The financial summary data for fiscal year 2015 does not reflect adoption of Topic 842 and the financial summary data for fiscal 2014 does not reflect adoption of Topic 606 and Topic 842. Note 2 to the Consolidated Financial Statements in Form 10-K, Item 8, provides additional information.
  3. The 2016 sales decline is primarily due to the December 2015 sale of our pharmacy and clinic businesses (Pharmacy Transaction) to CVS Pharmacy, Inc. 2015 and 2014 sales include $3,815 million and $4,418 million, respectively, related to our former pharmacy and clinic businesses.
  4. Includes losses on early retirement of debt of $123 million, $422 million, and $285 million for 2017, 2016, and 2014, respectively.
  5. For 2015, includes the gain on the sale of our pharmacy and clinic businesses.
  6. For 2018 and 2017, includes $36 million and $343 million, respectively, of discrete tax benefits related to the Tax Cuts and Jobs Act enacted in December 2017.
  7. Represents amounts attributable to continuing operations.
  8. Including current portion of long-term debt and other borrowings, net of short-term investments of $769 million, $1,131 million, $1,110 million, $3,008 million, and $1,520 million in 2018, 2017, 2016, 2015, and 2014, 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. For 2017 and earlier, only short-term investments held by U.S. entities were used to calculate net debt because amounts held by entities located outside the U.S. were restricted for use.
  9. See definition of comparable sales in Form 10-K, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  10. Represents revenue per square foot which is calculated using rolling four quarters average square feet. In 2017, revenue per square foot was calculated excluding the 53rd week in order to provide a more useful comparison to other years. Using total reported revenue for 2017 (including the 53rd week) resulted in revenue per square foot of $303. The 2016 decrease is primarily due to the Pharmacy Transaction. Our former pharmacy and clinic businesses contributed approximately $16 to 2015 revenue per square foot. Revenue per square foot for 2014 does not include profit sharing under our credit card program agreement which was classified as a reduction of SG&A expenses prior to adoption of Topic 606.

10-K Report

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