Segment Reporting (Tables)

3 Months Ended

May 03, 2014

Business Segment Results and Total Assets by Segment



Business Segment Results	Three Months Ended May 3, 2014								Three Months Ended May 4, 2013
(millions)	U.S.		Canadian			Total			U.S.		Canadian			Total
Sales	$	16,657	$	393		$	17,050		$	16,620	$	86		$	16,706
Cost of sales	11,748		319			12,067			11,509		53			11,563
Gross margin	4,909		74			4,983			5,111		33			5,143
Selling, general and administrative expenses ^(a)(e)	3,326		218			3,544			3,381		193			3,573
Depreciation and amortization	511		67			579			491		45			536
Segment profit	$	1,072	$	(211	)	$	860		$	1,239	$	(205	)	$	1,034
Gain on receivables transaction ^(b)						—								391
Reduction of beneficial interest asset ^(a)(e)						(18		)						(17		)
Data Breach related costs, net of insurance receivable^(c)(e)						(18		)						—
Card brand conversion costs ^(d)(e)						(13		)						—
Earnings before interest expense and income taxes						811								1,408
Net interest expense						170								629
Earnings before income taxes						$	641							$	779

Note: The sum of the segment amounts may not equal the total amounts due to rounding.

^(a) Our U.S. Segment includes all TD profit-sharing amounts in segment EBIT; however, under GAAP, some amounts received from TD reduce the beneficial interest asset and are not recorded in consolidated earnings.

^(b) Refer to Note 3 for more information on our credit card receivables transaction.

^(c) Refer to Note 5 for more information on Data Breach related costs.

^(d) Expense related to converting co-branded card program to MasterCard.

^(e) The sum of segment SG&A expenses, reduction of beneficial interest asset, Data Breach related costs and card brand conversion costs equal consolidated SG&A expenses.



Total Assets by Segment (millions)	May 3, 2014		February 1, 2014		May 4, 2013
U.S.	$	37,571	$	38,128	$	38,591
Canadian	6,323		6,254		5,435
Total segment assets	43,894		44,382		44,026
Unallocated assets ^(a)	148		171		208
Total assets	$	44,042	$	44,553	$	44,234

^(a) Represents the beneficial interest asset and insurance receivable related to the Data Breach of $108 million and $39 million, respectively, at May 3, 2014, and $127 million and $44 million, respectively, at February 1, 2014. Represents the beneficial interest asset at May 4, 2013.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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