SEC Filing Summary: Dayton Hudson Corporation (10-K)
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended January 29, 1994, for Dayton Hudson Corporation, a Minnesota-based retailer incorporated in 1902. The company operates through major divisions including Target, Mervyn's, and a Department Store Division. As of April 1, 1994, the company had 71,548,293 shares of common stock outstanding. A significant leadership change occurred on April 13, 1994, when Robert J. Ulrich succeeded Kenneth A. Macke as Chief Executive Officer.
Key Financial Metrics
Note: Specific consolidated revenue, net income, and cash flow totals are incorporated by reference from the 1993 Annual Report to Shareholders and are not explicitly stated in the provided text. The following metrics are derived from the included financial schedules.
- Capital Expenditures (Property & Equipment): Total additions for fiscal 1993 were $978 million, compared to $938 million in 1992.
- Depreciation Expense: Total depreciation charged to costs and expenses for 1993 was $498 million (up from $459 million in 1992).
- Short-Term Borrowings: The average balance of commercial paper outstanding during 1993 was $298 million with a weighted average interest rate of 3.2%. The maximum aggregate amount outstanding at any time was $896 million.
- Allowance for Doubtful Accounts: The balance at the end of 1993 was $35 million, with $53 million charged to expenses during the year.
- Advertising Costs: Total advertising costs for 1993 were $494 million.
- Other Taxes: Real and personal property taxes totaled $141 million; payroll taxes totaled $190 million.
Material Changes Versus Prior Period
- Asset Growth: Total Property and Equipment increased from $7,760 million at the end of 1992 to $8,283 million at the end of 1993, driven primarily by additions to Land ($130 million) and Buildings ($460 million).
- Depreciation Increase: Depreciation expense rose by approximately 8.5% year-over-year, reflecting the expansion of the asset base.
- Debt Utilization: The average balance of commercial paper decreased significantly from $460 million in 1992 to $298 million in 1993, and the weighted average interest rate dropped from 3.7% to 3.2%.
- Bad Debt Provision: Charges to expense for doubtful accounts decreased from $56 million in 1992 to $53 million in 1993.
Guidance, Outlook, and Risks
The provided text does not contain specific forward-looking guidance, earnings projections, or detailed management commentary regarding future market conditions. However, the following items are noted:
- Legal Proceedings: Disclosures regarding legal proceedings are incorporated by reference from the 1993 Annual Report (Page 25).
- Commitments and Contingencies: Details on commitments and contingencies are incorporated by reference from the 1993 Annual Report (Page 25).
- Accounting Policies: The company utilizes the LIFO (Last-In, First-Out) method for inventory valuation, with specific provisions detailed in the incorporated Annual Report.
- Leadership Transition: The filing highlights the transition of CEO duties from Kenneth A. Macke to Robert J. Ulrich effective April 13, 1994.
Investor Verification Checklist
- Verify the full Consolidated Results of Operations (Revenue, Net Income, EPS) in the 1993 Annual Report to Shareholders, as these figures are incorporated by reference and not listed in this text.
- Review the Commitments and Contingencies section (Page 25 of the Annual Report) for details on pending litigation and financial obligations.
- Confirm the impact of the LIFO provision on inventory valuation and cost of goods sold as detailed in the Annual Report.
- Assess the implications of the CEO transition on strategic direction and operational continuity.
- Examine the Capital Expenditure plan for 1994 to understand future liquidity requirements, given the $978 million spent in 1993.