Business Context and Reporting Period
This Form 8-K was filed by Target Corporation on June 6, 2008. The report addresses a change in financial reporting methodology effective with the first quarter of fiscal 2008 ended May 3, 2008.
Key Financial Metrics
The filing does not provide specific current period revenue, profit, cash flow, margin, debt, or liquidity figures. Instead, it serves as a vehicle to present historical data for fiscal years 2005, 2006, and 2007 that has been restated to reflect new accounting classifications.
Material Changes Versus Prior Period
- Cost Reclassification: Target is reclassifying certain costs from Selling, General and Administrative Expenses (SG&A) to Cost of Sales.
- Segment Reporting: Financial results are now reported in two distinct segments: Retail and Credit Card.
- Historical Restatement: Quarterly and full-year historical information for the three most recently completed fiscal years has been updated to reflect these changes.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or discussion of specific risks and contingencies. The document is strictly informational regarding the presentation of historical financial data.
Investor Verification Checklist
- Review Exhibit (99)A for historical fiscal 2005-2007 data reflecting the reclassification of costs from SG&A to Cost of Sales.
- Review Exhibit (99)B for historical fiscal 2005-2007 data presented in the new Retail and Credit Card segment format.
- Compare the restated historical margins against previously reported figures to understand the impact of the cost reclassification on gross profit and operating income.