0000950131-95-002495.txt : 19950914 0000950131-95-002495.hdr.sgml : 19950914 ACCESSION NUMBER: 0000950131-95-002495 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950729 FILED AS OF DATE: 19950908 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAYTON HUDSON CORP CENTRAL INDEX KEY: 0000027419 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-VARIETY STORES [5331] IRS NUMBER: 410215170 STATE OF INCORPORATION: MN FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06049 FILM NUMBER: 95572190 BUSINESS ADDRESS: STREET 1: 777 NICOLLET MALL CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123706948 FORMER COMPANY: FORMER CONFORMED NAME: DAYTON CORP DATE OF NAME CHANGE: 19690728 10-Q 1 FORM 10-Q 7-29-95 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended July 29, 1995 -------------- Commission file number 1-6049 ------ Dayton Hudson Corporation -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Minnesota 41-0215170 -------------------------------------------------------------------------------- (State of incorporation or organization) (I.R.S. Employer Identification No.) 777 Nicollet Mall Minneapolis, Minnesota 55402-2055 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (612) 370-6948 -------------------------------------------------------------------------------- None -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report.) The registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. The number of shares outstanding of common stock as of July 29, 1995 was 71,848,902. DAYTON HUDSON CORPORATION AND SUBSIDIARIES TABLE OF CONTENTS
PAGE NO. PART I FINANCIAL INFORMATION: ITEM 1 - FINANCIAL STATEMENTS Condensed Consolidated Results of Operations for the Three 1 Months, Six Months and Twelve Months ended July 29, 1995 and July 30, 1994 Condensed Consolidated Statements of Financial Position at July 2 29, 1995, January 28, 1995 and July 30, 1994 Condensed Consolidated Statements of Cash Flows for the Six 3 Months ended July 29, 1995 and July 30, 1994 Notes to Condensed Consolidated Financial Statements 4 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS 5-9 AND FINANCIAL CONDITION PART II OTHER INFORMATION: ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K 10 Signatures 11 Exhibit Index 12
PART I. FINANCIAL INFORMATION CONDENSED CONSOLIDATED Dayton Hudson Corporation RESULTS OF OPERATIONS and Subsidiaries (Millions of Dollars, Except Per Share Data) Three Months Ended Six Months Ended Twelve Months Ended ----------------------------------------------------------------------------------------------------------------------- JULY 29, July 30, JULY 29, July 30, JULY 29, July 30, (Unaudited) 1995 1994 1995 1994 1995 1994 ----------------------------------------------------------------------------------------------------------------------- REVENUES $5,236 $4,802 $9,993 $9,267 $22,037 $ 20,173 COSTS AND EXPENSES Cost of retail sales, buying and occupancy 3,896 3,519 7,400 6,772 16,264 14,783 Selling, publicity and administrative 941 874 1,834 1,694 3,771 3,423 Depreciation 143 131 283 260 554 508 Interest expense, net 108 105 215 211 430 432 Taxes other than income taxes 101 92 196 185 384 361 ----------------------------------------------------------------------------------------------------------------------- Total Costs and Expenses 5,189 4,721 9,928 9,122 21,403 19,507 ----------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 47 81 65 145 634 666 Provision for Income Taxes 19 32 26 57 249 257 ----------------------------------------------------------------------------------------------------------------------- NET EARNINGS $ 28 $ 49 $ 39 $ 88 $ 385 $ 409 ======================================================================================================================= PRIMARY EARNINGS PER SHARE $ 0.32 $ 0.62 $ 0.41 $ 1.10 $ 5.07 $ 5.45 FULLY DILUTED EARNINGS PER SHARE $ 0.32 $ 0.61 $ 0.41 $ 1.07 $ 4.87 $ 5.21 ======================================================================================================================= DIVIDENDS DECLARED PER COMMON SHARE $ 0.44 $ 0.42 $ 0.88 $ 0.84 $ 1.72 $ 1.66 AVERAGE COMMON SHARES OUTSTANDING (MILLIONS): Primary 72.3 72.0 72.2 72.0 72.1 71.9 Fully Diluted 72.4 76.3 72.3 76.3 76.3 76.2 ======================================================================================================================= See accompanying Notes to Condensed Consolidated Financial Statements.
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CONDENSED CONSOLIDATED STATEMENTS Dayton Hudson Corporation OF FINANCIAL POSITION and Subsidiaries JULY 29, January 28, July 30, (Millions of Dollars) 1995 1995* 1994 --------------------------------------------------------------------------------------------------- ASSETS (UNAUDITED) (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 175 $ 147 $ 169 Accounts receivable 1,596 1,810 1,418 Merchandise inventories 3,111 2,777 2,860 Other 172 225 129 --------------------------------------------------------------------------------------------------- Total Current Assets 5,054 4,959 4,576 PROPERTY AND EQUIPMENT 9,670 9,009 8,679 Accumulated depreciation (2,817) (2,624) (2,508) ------ ------ ------ Net Property and Equipment 6,853 6,385 6,171 OTHER 346 353 342 --------------------------------------------------------------------------------------------------- TOTAL ASSETS $12,253 $11,697 $11,089 =================================================================================================== LIABILITIES AND COMMON SHAREHOLDERS' INVESTMENT CURRENT LIABILITIES Notes payable and current portion of long-term debt $ 284 $ 209 $ 178 Accounts payable 2,165 1,961 1,842 Other 1,019 1,220 994 --------------------------------------------------------------------------------------------------- Total Current Liabilities 3,468 3,390 3,014 LONG-TERM DEBT 4,969 4,488 4,599 DEFERRED INCOME TAXES AND OTHER 581 582 545 CONVERTIBLE PREFERRED STOCK 355 360 365 LOAN TO ESOP (136) (166) (192) COMMON SHAREHOLDERS' INVESTMENT 3,016 3,043 2,758 --------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND COMMON SHAREHOLDERS' INVESTMENT $12,253 $11,697 $11,089 =================================================================================================== COMMON SHARES OUTSTANDING (MILLIONS) 71.8 71.7 71.6 ===================================================================================================
* The January 28, 1995 Consolidated Statement of Financial Position is condensed from the audited financial statements. See accompanying Notes to Condensed Consolidated Financial Statements. 2 CONDENSED CONSOLIDATED Dayton Hudson Corporation STATEMENTS OF CASH FLOWS and Subsidiaries
(Millions of Dollars) Six Months Ended --------------------------------------------------------------------- (Unaudited) JULY 29, July 30, 1995 1994 --------------------------------------------------------------------- OPERATING ACTIVITIES Net earnings $ 39 $ 88 Reconciliation to cash flow: Depreciation 283 260 Deferred tax provision (17) (38) Other noncash items affecting earnings 42 49 Changes in operating accounts providing/(requiring)cash: Accounts receivable 214 118 Merchandise inventories (334) (363) Accounts payable 204 188 Other (133) 6 --------------------------------------------------------------------- Cash Flow Provided by Operations 298 308 --------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures for property, net (760) (496) --------------------------------------------------------------------- Cash Flow Required for Investing Activities (760) (496) --------------------------------------------------------------------- Net Financing Requirements (462) (188) --------------------------------------------------------------------- FINANCING ACTIVITIES Increase in notes payable 157 - Additions to long-term debt 543 272 Reduction of long-term debt (144) (144) Dividends paid (73) (72) Other 7 (20) --------------------------------------------------------------------- Cash Flow Provided by Financing Activities 490 36 --------------------------------------------------------------------- Net Increase/(Decrease) in Cash and Cash Equivalents 28 (152) Cash and Cash Equivalents at Beginning of Period 147 321 --------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 175 $ 169 =====================================================================
Amounts in this statement are presented on a cash basis and therefore may differ from those shown elsewhere in this 10-Q report. Cash paid for interest (including interest capitalized) in the first six months of 1995 and 1994 was $216 million and $213 million, respectively. Cash paid for income tax payments was $158 million and $175 million during the first six months of 1995 and 1994, respectively. See accompanying Notes to Condensed Consolidated Financial Statements. 3 NOTES TO CONDENSED CONSOLIDATED Dayton Hudson Corporation FINANCIAL STATEMENTS and Subsidiaries ACCOUNTING POLICIES The accompanying condensed consolidated financial statements should be read in conjunction with the financial statement disclosures contained in the Corporation's 1994 Annual Shareholders' Report throughout pages 21-32. As explained on page 31 of the Annual Report, the same accounting policies are followed in preparing quarterly financial data as are followed in preparing annual data. In the opinion of management, all adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. Due to the seasonal nature of the retail industry, earnings for periods which exclude the Christmas season are not indicative of the operating results that may be expected for the full fiscal year. PER SHARE DATA Primary earnings per share equal net earnings, less dividend requirements on ESOP preferred stock, divided by the average number of common shares and common share equivalents outstanding during the period. Fully diluted earnings per share assumes conversion of the ESOP preferred stock into common stock, unless the conversion is not dilutive. Net earnings are adjusted for the additional expense required to fund the ESOP debt service which results from the assumed replacement of the ESOP preferred dividends with common stock dividends, unless the assumed conversion is not dilutive. For the three- and six-months ended July 29, 1995, fully diluted average common shares outstanding and fully diluted net earnings exclude the assumed conversion of ESOP preferred stock as it was not dilutive. Earnings per share are calculated independently for each of the periods presented and therefore the sum of the quarters may not equal the year-to-date or twelve-month amounts. References to earnings per share relate to fully diluted earnings per share. SUBSEQUENT EVENT Subsequent to the end of the second quarter, the Corporation entered into an accounts receivable securitization transaction. In this transaction, Dayton Hudson Receivables Corporation, a subsidiary, will sell to the public $400 million of fixed-rate certificates backed by the Corporation's credit card receivables. This issue of asset backed certificates will have a maturity of three years and a certificate rate of 6.10 percent. Proceeds from the sale of the certificates will be used to repay outstanding debt, to fund internal credit expansion and for general corporate purposes. 4 MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS AND FINANCIAL CONDITION SECOND QUARTER 1995 ANALYSIS OF OPERATIONS Second quarter net earnings were $28 million, compared with $49 million for second quarter last year. For the first half of 1995, net earnings decreased 56% to $39 million from $88 million for the same period a year ago. Earnings per share for the second quarter were $.32, compared with $.61 per share last year. For the six-month period ended July 29, 1995, earnings per share were $.41 compared with $1.07 for the same period last year. The following table illustrates the impact of the major factors contributing to the changes in earnings per share:
Three Six Months Months ------------------------------------------------------- 1994 Earnings Per Share $ .61 $ 1.07 Changes in earnings per share: Revenues .25 .55 Gross margin rate (.47) (.84) Operating expense rate (.06) (.38) Start-up expense .05 .04 Interest expense, net (.02) (.03) Corporate expense and other (.04) - ------------------------------------------------------- 1995 Earnings Per Share $ .32 $ .41 =======================================================
Our second quarter and six-month earnings shortfalls were primarily due to weak sales and earnings performance at Mervyn's. In addition, the Department Store Division's (DSD) earnings declined. Target continued to report solid results. The revenue increases reflect the continued strong sales volume growth at Target, as well as increased finance charge and late fee revenues at all three operating divisions. The overall gross margin rate was unfavorable to last year, reflecting increased promotional markdowns at both Mervyn's and DSD. The overall operating expense rate for the second quarter increased slightly compared with last year as a result of lower sales leveraging at Mervyn's and higher buying and occupancy costs at all three operating divisions combined with higher store payroll costs at Target partially offset by the positive effect of the business mix. The operating expense rate for the six-month period was higher due to lack of sales leverage at Mervyn's and increased buying and occupancy costs at all three operating divisions. Due to strong growth at Target, our lowest margin and expense rate division, the Corporation's overall revenue growth and operating expense rate were favorably affected, while the gross margin rate was unfavorably affected. 5 Revenues -------- For the three- and six-month periods ended July 29, 1995, total revenues increased 9% and 8%, respectively. Comparable-store revenues (revenues from stores open longer than a year) increased 3% and 2%, respectively. Revenues by business segment were as follows :
(Millions of dollars) Three Months Ended Percentage Change ------------------- ------------------- JULY 29, July 30, All Comparable 1995 1994 Stores Stores ------- ------ ------ ---------- Target $3,514 $3,084 14% 6% Mervyn's 1,030 1,051 (2) (4) Department Store Division 692 667 4 4 ------ ------ -- -- TOTAL $5,236 $4,802 9% 3% ====== ====== == ==
Six Months Ended Percentage Change ------------------- ------------------- JULY 29, July 30, All Comparable 1995 1994 Stores Stores ------- ------- ------ ---------- Target $6,671 $5,903 13% 5% Mervyn's 1,944 2,011 (3) (5) Department Store Division 1,378 1,353 2 2 ------ ------ -- -- TOTAL $9,993 $9,267 8% 2% ====== ====== == ==
Target's strong revenue growth reflects new store growth combined with a 6% improvement in base business revenues. While Mervyn's total and comparable- store revenues declined in the second quarter and six-month period, we are optimistic that the repositioning efforts will result in steadily improving performance beginning with the third quarter. DSD's total and comparable- store revenues showed a modest improvement due to an increase in promotional efforts. Operating Profit ---------------- Overall operating profit declined 15% and 21% for the quarter and six-month period, respectively, primarily the result of weak sales and earnings at Mervyn's and lower earnings at DSD. (Operating profit is LIFO earnings from operations before corporate expense, interest and income taxes.) 6 TARGET reported a moderate improvement in operating profit for the three- and six-month periods compared with the same periods last year. The second quarter earnings growth was driven by strong revenue increases and lower charges for store closings and relocations. Excluding the effect of these charges, Target's operating profit was even with last year's exceptionally strong second quarter. The gross margin rate declined slightly in the second quarter due to slightly lower markup. Target's gross margin rate for the first half of 1995 was approximately equal to last year. Target's operating expense rate increased for the second quarter and six-month period principally due to higher store expenses associated with wage rate increases as well as enhanced guest services, partially offset in the second quarter by lower store closing and relocation expenses. MERVYN'S operating profit was essentially zero for the second quarter and six- month period. The gross margin rate deteriorated in both periods, reflecting a significant increase in promotional markdowns. The operating expense rates increased reflecting lower sales leveraging. In addition, for the six-month period the operating expense rate reflects increased marketing expenses. Looking forward, the promotional markdown rate for the fall season is expected to stabilize at second quarter 1995's level, but increase compared to the prior year, with the continuing implementation of Mervyn's promotional strategy. This increase is expected to be offset by higher markup and lower clearance markdowns. Mervyn's long-term objective is to balance its profit formula by restoring the gross margin rate to recent historical levels and by improving the operating expense rate leveraging through improved sales performance. The key components of Mervyn's new strategy, which will be fully implemented during the third quarter, include an increased emphasis on national brands, a higher percentage of merchandise on sale each week, greater use of advertising circulars, a broader assortment of merchandise, and the introduction of a California theme to merchandise and advertising. Through this strategy, Mervyn's repositioning efforts are expected to result in improving performance beginning in the third quarter. DSD'S second quarter and six-month operating profit declined compared to the same periods last year. The gross margin rates deteriorated due to increased promotional markdowns, partially offset by increased markup. The operating expense rates rose principally due to increases in marketing expenses, depreciation on newly remodeled stores and buying and occupancy costs partially offset by store efficiencies. In the second half of 1995, the impact of the accounts receivable securitization transaction will be reflected proportionately (based on respective receivable balances) in each division's operating profit results as a reduction of finance charge revenue as well as a reduction of bad debt expense. The net decrease in total operating profit in the second half of 1995 of approximately $9 million is expected to be offset by savings realized through reduced interest expense due to the replacement of debt with the proceeds from the accounts receivable securitization transaction. Other Performance Factors ------------------------- The last-in first-out (LIFO) provision was zero for the three- and six-month periods ended July 29, 1995 and July 30, 1994. Management does not currently expect a material LIFO charge or credit for the total year. The cumulative LIFO provision was $61 million at July 29, 1995 and January 28, 1995, and $80 million at July 30, 1994. 7 Net interest expense increased $3 million ( $.02 per share) in the second quarter and $4 million ($.03 per share) in the first half of 1995 compared with the same periods last year as higher average debt balances were substantially offset by lower average portfolio interest rates. Looking forward, this trend is expected to continue through the second half of 1995. In addition, interest expense savings will be realized through the securitization of accounts receivable. The estimated annual effective income tax rate is 39.5% for 1995. This compares with an estimated rate of 39.0% in 1994. ANALYSIS OF FINANCIAL CONDITION Our financial condition remains strong. Our ratio of debt (including the present value of operating leases) to total capitalization was 60% at the end of second quarter 1995, compared with 59% a year ago and 57% at year end. The higher rate at the end of second quarter reflects the additional capital invested in new stores and store remodels, as well as credit expansion. At July 29, 1995, working capital was $1,586 million, or 2% higher than a year ago. Accounts receivable increased 13% compared to a year ago reflecting the planned growth of internal credit balances associated with changes in payment terms at DSD and Mervyn's, and the expansion of Target's proprietary credit card. Compared to year-end, accounts receivable decreased 12%, the typical reduction from a seasonal high balance. As a result of the securitization transaction, accounts receivable will be reduced by $400 million. Merchandise inventories and accounts payable increased 9% and 18%, respectively, compared to second quarter 1994, primarily as a result of new store growth and enhanced accounts payable leveraging. Also, due to new store growth, merchandise inventories and accounts payable increased 12% and 10%, respectively, compared to year-end. Capital expenditures for the first half of 1995 were $762 million, compared with $496 million for the same period a year ago. Approximately 64% of these expenditures were made by Target, 25% by Mervyn's, 10% by DSD and 1% by Corporate. Mervyn's capital expenditures primarily represent the acquisition and remodel of several real estate sites in the Minneapolis-St. Paul market. 8 STORE DATA At July 29, 1995, Target operated 645 stores in 32 states, Mervyn's operated 294 stores in 16 states and DSD operated 63 stores in nine states, for a total of 1,002 stores in 33 states. During the quarter, the Corporation opened 22 Target stores and seven Mervyn's stores. Retail square footage was as follows:
JULY 29, January 28, July 30, (In thousands) 1995 1995 1994 ------------------------------------------------- Target 68,198 64,446 61,331 Mervyn's 24,148 23,130 22,828 DSD 13,824 13,824 13,824 ------------------------------------------------- Total 106,170 101,400 97,983 -------------------------------------------------
9 PART II. OTHER INFORMATION --------------------------- Item 6. Exhibits and Reports on Form 8-K a) Exhibits (2). Not applicable (4). Instruments defining the rights of security holders, including indentures. Registrant agrees to furnish the Commission on request copies of instruments with respect to long-term debt. (10). Not applicable (11). Statements re Computations of Per Share Earnings (12). Statements re Computations of Ratios (15). Not applicable (18). Not applicable (19). Not applicable (22). Not applicable (23). Not applicable (24). Not applicable (27). Financial Data Schedule (99). Not applicable b) Reports on Form 8-K. Registrant did not file any reports on Form 8-K during the quarter ended July 29, 1995. 10 Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DAYTON HUDSON CORPORATION Registrant Date: September 8, 1995 By /s/ Douglas A. Scovanner ------------------------------- Douglas A. Scovanner Senior Vice President and Chief Financial Officer Date: September 8, 1995 By /s/ J.A. Bogdan ------------------------------- JoAnn Bogdan Controller and Chief Accounting Officer 11 Exhibit Index ------------- (11). Statements re Computations of Per Share Earnings (12). Statements re Computations of Ratios (27). Financial Data Schedule 12 EX-11 2 COMPUTATION OF PER SHARE EXHIBIT (11) DAYTON HUDSON CORPORATION AND SUBSIDIARIES COMPUTATIONS OF PER SHARE EARNINGS (MILLIONS OF DOLLARS, EXCEPT PER SHARE DATA)
Three Months Ended Six Months Ended Twelve Months Ended ---------------------------------- ---------------------------------- --------------------------------- July 29, 1995 July 30, 1994 July 29, 1995 July 30, 1994 July 29, 1995 July 30, 1994 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Earnings Shares Earnings Shares Earnings Shares Earnings Shares Earnings Shares Earnings Shares -------- ------ -------- ------ -------- ------ -------- ------ -------- ------ -------- ------ Primary Computations -------------------- Net earnings $ 28 $ 49 $ 39 $ 88 $ 385 $ 409 Less: Dividend requirements on ESOP preferred shares, net of tax benefit on unallocated shares (5) (4) (10) (9) (19) (17) ----- ------ ----- ----- ----- ----- Adjusted net earnings $ 23 $ 45 $ 29 $ 79 $ 366 $ 392 ===== ====== ===== ===== ===== ===== Average common shares outstanding 71.8 71.6 71.8 71.6 71.7 71.5 Average number of common share equivalents: Stock options 0.2 0.2 0.1 0.2 0.2 0.2 Performance shares 0.3 0.2 0.3 0.2 0.2 0.2 ---- ---- ---- ---- ---- ---- Adjusted common equivalent shares outstanding--primary 72.3 72.0 72.2 72.0 72.1 71.9 ==== ==== ==== ==== ==== ==== PRIMARY EARNINGS PER SHARE $0.32 $ 0.62 $ .41 $1.10 $5.07 $5.45 ===== ====== ===== ===== ===== ===== Fully Diluted Computations -------------------------- Net earnings $ 28 $ 49 $ 39 $ 88 $ 385 $ 409 Less: Dividend requirements on ESOP preferred shares, net of tax benefit on unallocated shares (5)/a/ - (10/a/ - - - Less: Earnings impact of assumed ESOP preferred share conversion, net of tax benefit on unallocated shares -/a/ (3) -/a/ (6) (13) (12) ----- ------ ----- ----- ----- ----- Adjusted net earnings $ 23 $ 46 $ 29 $ 82 $ 372 $ 397 ===== ====== ===== ===== ===== ===== Average common and common equivalent shares-primary 72.3 72.0 72.2 72.0 72.1 71.9 Additional common stock equivalents attributable to application of the treasury stock method 0.1 0.1 0.1 0.1 - - Assumed conversion of ESOP preferred shares -/a/ 4.2 -/a/ 4.2 4.2 4.3 ---- ---- ---- ---- ---- ---- Adjusted common equivalent shares outstanding--fully diluted 72.4 76.3 72.3 76.3 76.3 76.2 ==== ==== ==== ==== ==== ==== FULLY DILUTED EARNINGS PER SHARE $0.32 $ 0.61 $0.41 $1.07 $4.87 $5.21 ===== ====== ===== ===== ===== ===== AVERAGE ALLOCATED ESOP PREFERRED SHARES OUTSTANDING (IN MILLIONS) 2.5 2.1 2.4 2.0 2.1 1.6 ==== ==== ==== ==== ==== ====
/a/ ESOP preferred shares are not dilutive. See Notes to Condensed Consolidated Financial Statements. EX-12 3 COMPUTATIONS OF RATIO EXHIBIT (12) DAYTON HUDSON CORPORATION AND SUBSIDIARIES COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES FOR THE SIX MONTHS ENDED JULY 29, 1995 AND JULY 30, 1994 AND FOR THE FIVE YEARS ENDED JANUARY 28, 1995 (MILLIONS OF DOLLARS)
Six Months Ended Fiscal Year Ended --------------------- -------------------------------------------------------- July 29, July 30, Jan 28, Jan 29, Jan 30, Feb 1, Feb 2, 1995 1994 1995 1994 1993 1992 1991 ------- ------- ------ ------ ------ ----- ------ Earnings: Consolidated net earnings............... $ 39 $ 88 $ 434 $ 375 $ 383 $ 301 $ 412 Income taxes............................ 26 57 280 232 228 171 249 ----- ----- ------ ------ ------ ----- ------ Total earnings...................... 65 145 714 607 611 472 661 ----- ----- ------ ------ ------ ----- ------ Fixed charges: Interest expense........................ 226 217 439 459 454 421 333 Dividends on preferred stock (pre-tax basis)...................... 19 19 39 39 39 39 39 Interest portion of rental expense...... 32 25 56 45 43 39 46 ----- ----- ------ ------ ------ ----- ------ Total fixed charges................. 277 261 534 543 536 499 418 Less: Dividends on preferred stock (pre-tax basis)...................... (19) (19) (39) (39) (39) (39) (39) Capitalized interest.................... (8) (3) (7) (5) (6) (11) (8) ----- ----- ------ ------ ------ ----- ------ Fixed charges in earnings............ 250 239 488 499 491 449 371 ----- ----- ------ ------ ------ ----- ------ Earnings available for fixed charges....... $ 315 $ 384 $1,202 $1,106 $1,102 $ 921 $1,032 ===== ===== ====== ====== ====== ===== ====== Ratio of earnings to fixed charges......... 1.14 1.47 2.25 2.04 2.06 1.85 2.47 ===== ===== ====== ====== ====== ===== ======
EX-27 4 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from Dayton Hudson Corporation's Form 10-Q for the second quarter ended July 29, 1995 and is qualified in its entirety by reference to such financial statements. 1,000,000 6-MOS FEB-03-1996 JAN-29-1995 JUL-29-1995 175 0 1651 55 3111 5054 9670 2817 12253 3468 4969 355 0 72 2944 12253 9802 9993 7400 7400 2270 43 215 65 26 39 0 0 0 39 0.41 0.41