Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) May 22, 2019
 
Target Corporation
(Exact name of registrant as specified in its charter)
Minnesota
 
1-6049
 
41-0215170
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
1000 Nicollet Mall, Minneapolis, Minnesota 55403
(Address of principal executive offices, including zip code)
(612) 304-6073
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange on Which Registered
Common Stock, par value $0.0833 per share
 
TGT
 
New York Stock Exchange
 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 

 




Item 2.02.             Results of Operations and Financial Condition.
 
On May 22, 2019, Target Corporation issued a News Release containing its financial results for the three months ended May 4, 2019.  The News Release is attached hereto as Exhibit 99.
 
Item 9.01.             Financial Statements and Exhibits.
 
(d)                                 Exhibits.
(99)
 


                        

2



SIGNATURE
 
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 hereunto duly authorized.
 
 
TARGET CORPORATION
 
 
Date: May 22, 2019
/s/ Cathy R. Smith
 
Cathy R. Smith
 
Executive Vice President and Chief Financial Officer


3
Exhibit
Exhibit 99


 https://cdn.kscope.io/7982eb0798233ad91cb31b07ddb8586d-releasebullseyea15.jpg

FOR IMMEDIATE RELEASE
Contacts:
John Hulbert, Investors, (612) 761-6627
 
Erin Conroy, Media, (612) 761-5928
 
Target Media Hotline, (612) 696-3400

Target Reports First Quarter 2019 Earnings
Results Include Better-Than-Expected Comparable Sales, Operating Income and EPS


First quarter comparable sales grew 4.8 percent on traffic growth of 4.3 percent.
First quarter comparable digital channel sales grew 42 percent, on top of 28 percent last year.
Comparable digital sales contributed 2.1 percentage points to Target’s overall comparable sales growth.
Same-day fulfillment services (Order Pick Up, Drive Up and Shipt) drove well over half of the Company’s digital sales growth.
First-quarter operating income of $1.135 billion was 9.0 percent higher than a year ago.
GAAP EPS from continuing operations were $1.53, up 15.1 percent from last year. Adjusted EPS were $1.53, up 15.9 percent from last year.
In the second quarter, Target expects low- to mid-single digit growth in its comparable sales.
The midpoint of Target’s second quarter EPS guidance of $1.52 to $1.72 represents high single digit growth compared with prior year GAAP EPS from continuing operations and double-digit growth compared with prior year Adjusted EPS.
For the fiscal year, Target continues to expect a low- to mid-single digit increase in comparable sales and both GAAP EPS and Adjusted EPS of $5.75 to $6.05.
For additional media materials, please visit:
https://corporate.target.com/article/2019/05/q1-2019-earnings

MINNEAPOLIS (May 22, 2019) - Target Corporation (NYSE: TGT) today announced its first quarter 2019 performance, including first quarter comparable sales growth of 4.8 percent driven


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Target Corporation Reports First Quarter 2019 Earnings - Page 2 of 12
by a 4.3 percent increase in comparable traffic. The Company reported GAAP earnings per share (EPS) from continuing operations of $1.53 in first quarter 2019, up 15.1 percent from $1.33 in first quarter 2018. First quarter Adjusted EPS were $1.53, up 15.9 percent from $1.32 in first quarter 2018. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.
“Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income and earnings per share,” said Brian Cornell, Chairman and CEO of Target Corporation. “Over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth. Target’s first quarter performance and market-share gains demonstrate that the model is working. Throughout this year, we will continue to extend the reach of our same-day fulfillment options, strengthen our portfolio of owned and exclusive brands, remodel and open more stores and invest in our team. We’re confident that we’re well-positioned to deliver strong financial performance in 2019 and beyond.”

Second Quarter and Full-Year 2019 Guidance
Target expects second quarter comparable sales growth in the low- to mid-single digit range, mid-single digit growth in operating income dollars and both GAAP EPS from continuing operations and Adjusted EPS of $1.52 to $1.72.
For full-year 2019, Target continues to expect a low- to mid-single digit increase in comparable sales, a mid-single digit increase in operating income, and both GAAP EPS from continuing operations and Adjusted EPS of $5.75 to $6.05.
Second quarter and full-year 2019 GAAP EPS from continuing operations may include the impact of certain discrete items which will be excluded in calculating Adjusted EPS. The Company is not currently aware of any such discrete items.

Operating Results
Total revenue of $17.6 billion increased 5.0 percent from $16.8 billion last year, reflecting sales growth of 5.1 percent combined with a 0.5 percent increase in other revenue.


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Target Corporation Reports First Quarter 2019 Earnings - Page 3 of 12
First quarter sales growth of 5.1 percent reflected comparable sales growth of 4.8 percent combined with the contribution from non-mature stores. Comparable digital sales grew 42 percent, contributing 2.1 percentage points to comparable sales growth. Operating income was $1,135 million in first quarter 2019, up 9.0 percent from $1,041 million in 2018.
First quarter operating income margin rate was 6.4 percent in 2019, compared with 6.2 percent in 2018. First quarter gross margin rate was 29.6 percent, compared with 29.8 percent in 2018, reflecting higher digital fulfillment and supply chain costs, partially offset by the benefit of merchandising strategies. First quarter SG&A expense rate was 20.8 percent in 2019, compared with 21.1 percent in 2018. This performance reflected cost savings in technology and a year-over-year timing benefit in marketing expenses, combined with strong expense control across the Company which offset continued pressure from wage growth.

Interest Expense and Taxes from Continuing Operations
The Company’s first quarter 2019 net interest expense was $126 million, compared with $121 million last year. First quarter 2019 effective income tax rate from continuing operations was 22.4 percent, compared with 22.6 percent last year.

Shareholder Returns
The Company returned $608 million to shareholders in first quarter 2019, including:
Dividends of $330 million, compared with $334 million in first quarter 2018, reflecting a decline in share count partially offset by a 3.2 percent increase in the dividend per share.
Share repurchases totaling $277 million that retired 3.6 million shares of common stock at an average price of $76.98.
At the end of the first quarter, the Company had approximately $1.0 billion of remaining capacity under its current $5 billion share repurchase program.
For the trailing twelve months through first quarter 2019, after-tax return on invested capital (ROIC) was 14.3 percent, compared with 15.2 percent for the twelve months through first


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Target Corporation Reports First Quarter 2019 Earnings - Page 4 of 12
quarter 2018. Excluding the discrete impacts of the Tax Cuts and Jobs Act of 2017, ROIC was 14.1 percent for the trailing twelve months ended May 4, 2019, compared with 13.5 percent in the comparable prior-year period. See the tables of this release for additional information about the Company’s ROIC calculation.

Conference Call Details
Target will webcast its first quarter earnings conference call at 7:00 a.m. CDT today. Investors and the media are invited to listen to the call at investors.target.com (hover over “investors” then click on “events & presentations”). A telephone replay of the call will be available beginning at approximately 10:30 a.m. CDT today through the end of business on May 24, 2019. The replay number is 866-419-8652.

Miscellaneous
Statements in this release regarding second quarter and full-year 2019 earnings per share, operating income and comparable sales guidance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company’s actual results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company’s Form 10-K for the fiscal year ended February 2, 2019. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.


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Target Corporation Reports First Quarter 2019 Earnings - Page 5 of 12
About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at more than 1,800 stores and at Target.com. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. For the latest store count or for more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter.

# # #


Target Corporation Reports First Quarter 2019 Earnings - Page 6 of 12

TARGET CORPORATION
 
Consolidated Statements of Operations
 
 
Three Months Ended
 
 

(millions, except per share data) (unaudited)
 
May 4,
2019
 
May 5,
2018
 
Change
Sales
 
$
17,401

 
$
16,556

 
5.1
 %
Other revenue
 
226

 
225

 
0.5

Total revenue
 
17,627

 
16,781

 
5.0

Cost of sales
 
12,248

 
11,625

 
5.4

Selling, general and administrative expenses
 
3,663

 
3,545

 
3.3

Depreciation and amortization (exclusive of depreciation included in cost of sales)
 
581

 
570

 
1.9

Operating income
 
1,135

 
1,041

 
9.0

Net interest expense
 
126

 
121

 
3.3

Net other (income) / expense
 
(12
)
 
(7
)
 
67.0

Earnings from continuing operations before income taxes
 
1,021

 
927

 
10.2

Provision for income taxes
 
229

 
210

 
9.2

Net earnings from continuing operations
 
792

 
717

 
10.5

Discontinued operations, net of tax
 
3

 
1

 
 
Net earnings
 
$
795

 
$
718

 
10.8
 %
Basic earnings per share
 
 
 
 
 
 
Continuing operations
 
$
1.54

 
$
1.34

 
15.1
 %
Discontinued operations
 

 

 
 
Net earnings per share
 
$
1.54

 
$
1.34

 
15.4
 %
Diluted earnings per share
 
 
 
 
 
 
Continuing operations
 
$
1.53

 
$
1.33

 
15.1
 %
Discontinued operations
 

 

 
 
Net earnings per share
 
$
1.53

 
$
1.33

 
15.4
 %
Weighted average common shares outstanding
 
 
 
 
 
 
Basic
 
515.7

 
536.9

 
(4.0
)%
Diluted
 
519.5

 
541.0

 
(4.0
)%
Antidilutive shares
 
0.1

 
2.2

 
 
Dividends declared per share
 
$
0.64

 
$
0.62

 
3.2
 %
Note: Per share amounts may not foot due to rounding.




Target Corporation Reports First Quarter 2019 Earnings - Page 7 of 12

TARGET CORPORATION
 
Consolidated Statements of Financial Position
(millions) (unaudited)
 
May 4,
2019
 
February 2,
2019
 
May 5,
2018
Assets
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,173

 
$
1,556

 
$
1,060

Inventory
 
9,060

 
9,497

 
8,652

Other current assets
 
1,374

 
1,466

 
1,164

Total current assets
 
11,607

 
12,519

 
10,876

Property and equipment
 
 

 
 

 
 

Land
 
6,061

 
6,064

 
6,090

Buildings and improvements
 
29,573

 
29,240

 
28,363

Fixtures and equipment
 
5,401

 
5,912

 
5,135

Computer hardware and software
 
2,553

 
2,544

 
2,511

Construction-in-progress
 
574

 
460

 
639

Accumulated depreciation
 
(18,456
)
 
(18,687
)
 
(17,971
)
Property and equipment, net
 
25,706

 
25,533

 
24,767

Operating lease assets
 
2,019

 
1,965

 
1,958

Other noncurrent assets
 
1,287

 
1,273

 
1,328

Total assets
 
$
40,619

 
$
41,290

 
$
38,929

Liabilities and shareholders’ investment
 
 

 
 

 
 

Accounts payable
 
$
8,360

 
$
9,761

 
$
8,131

Accrued and other current liabilities
 
3,823

 
4,201

 
3,630

Current portion of long-term debt and other borrowings
 
1,056

 
1,052

 
283

Total current liabilities
 
13,239

 
15,014

 
12,044

Long-term debt and other borrowings
 
11,357

 
10,223

 
11,107

Noncurrent operating lease liabilities
 
2,064

 
2,004

 
2,007

Deferred income taxes
 
1,034

 
972

 
744

Other noncurrent liabilities
 
1,808

 
1,780

 
1,869

Total noncurrent liabilities
 
16,263

 
14,979

 
15,727

Shareholders’ investment
 
 

 
 

 
 

Common stock
 
43

 
43

 
44

Additional paid-in capital
 
5,908

 
6,042

 
5,664

Retained earnings
 
5,958

 
6,017

 
6,187

Accumulated other comprehensive loss
 
(792
)
 
(805
)
 
(737
)
Total shareholders’ investment
 
11,117

 
11,297

 
11,158

Total liabilities and shareholders’ investment
 
$
40,619

 
$
41,290

 
$
38,929

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 512,312,434, 517,761,600 and 532,916,612 shares issued and outstanding at May 4, 2019, February 2, 2019, and May 5, 2018, respectively.
 
Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.



Target Corporation Reports First Quarter 2019 Earnings - Page 8 of 12

TARGET CORPORATION
 
Consolidated Statements of Cash Flows
 
 
Three Months Ended
(millions) (unaudited)
 
May 4,
2019
 
May 5,
2018
Operating activities
 
 

 
 

Net earnings
 
$
795

 
$
718

Earnings from discontinued operations, net of tax
 
3

 
1

Net earnings from continuing operations
 
792

 
717

Adjustments to reconcile net earnings to cash provided by operations
 
 

 
 

Depreciation and amortization
 
644

 
631

Share-based compensation expense
 
46

 
42

Deferred income taxes
 
59

 
48

Noncash losses / (gains) and other, net
 
10

 
40

Changes in operating accounts
 
 

 
 

Inventory
 
438

 
(55
)
Other assets
 
17

 
26

Accounts payable
 
(1,402
)
 
(604
)
Accrued and other liabilities
 
(281
)
 
(333
)
Cash provided by operating activities—continuing operations
 
323

 
512

Cash provided by operating activities—discontinued operations
 

 
2

Cash provided by operations
 
323

 
514

Investing activities
 
 

 
 

Expenditures for property and equipment
 
(655
)
 
(827
)
Proceeds from disposal of property and equipment
 
5

 
4

Other investments
 
1

 
5

Cash required for investing activities
 
(649
)
 
(818
)
Financing activities
 
 

 
 

Additions to long-term debt
 
994

 

Reductions of long-term debt
 
(13
)
 
(12
)
Dividends paid
 
(330
)
 
(334
)
Repurchase of stock
 
(320
)
 
(524
)
Accelerated share repurchase pending final settlement
 
(400
)
 
(425
)
Stock option exercises
 
12

 
16

Cash required for financing activities
 
(57
)
 
(1,279
)
Net decrease in cash and cash equivalents
 
(383
)
 
(1,583
)
Cash and cash equivalents at beginning of period
 
1,556

 
2,643

Cash and cash equivalents at end of period
 
$
1,173

 
$
1,060

 



Target Corporation Reports First Quarter 2019 Earnings - Page 9 of 12

TARGET CORPORATION
 
Operating Results

 
Three Months Ended
Rate Analysis
(unaudited)
May 4,
2019
 
May 5,
2018
Gross margin rate
29.6
%
 
29.8
%
SG&A expense rate
20.8

 
21.1

Depreciation and amortization (exclusive of depreciation included in cost of sales) expense rate
3.3

 
3.4

Operating income margin rate
6.4

 
6.2

Note: Gross margin rate is calculated as gross margin (sales less cost of sales) divided by sales. All other rates are calculated by dividing the applicable amount by total revenue. Other revenue includes $160 million and $167 million of profit-sharing income under our credit card program agreement for the three months ended May 4, 2019, and May 5, 2018, respectively.

 
Three Months Ended
Comparable Sales
(unaudited)
May 4,
2019
 
May 5,
2018
Comparable sales change
4.8
%
 
3.0
 %
Drivers of change in comparable sales
 

 
 

Number of transactions
4.3

 
3.7

Average transaction amount
0.5

 
(0.6
)
Note: Amounts may not foot due to rounding.

Contribution to Comparable Sales Change
(unaudited)
Three Months Ended
May 4,
2019
 
May 5,
2018
Stores channel comparable sales change
2.7
%
 
1.9
%
Digital channel contribution to comparable sales change
2.1

 
1.1

Total comparable sales change
4.8
%
 
3.0
%
Note: Amounts may not foot due to rounding.
 
 
Three Months Ended
Sales by Channel
(unaudited)
May 4,
2019
 
May 5,
2018
Stores originated
92.9
%
 
94.8
%
Digitally originated
7.1

 
5.2

Total
100
%
 
100
%

 
Three Months Ended
REDcard Penetration
(unaudited)
May 4,
2019
 
May 5,
2018
Target Debit Card
13.1
%
 
13.5
%
Target Credit Cards
10.4

 
10.6

Total REDcard Penetration
23.5
%
 
24.1
%
Note: Amounts may not foot due to rounding.


Target Corporation Reports First Quarter 2019 Earnings - Page 10 of 12

 
Number of Stores and Retail Square Feet
(unaudited)
Number of Stores
 
Retail Square Feet (a)
May 4,
2019
February 2,
2019
May 5,
2018
 
May 4,
2019
February 2,
2019
May 5,
2018
170,000 or more sq. ft.
272

272

274

 
48,603

48,604

48,951

50,000 to 169,999 sq. ft.
1,501

1,501

1,502

 
188,918

188,900

189,258

49,999 or less sq. ft.
78

71

53

 
2,276

2,077

1,477

Total
1,851

1,844

1,829

 
239,797

239,581

239,686

(a) 
In thousands, reflects total square feet less office, distribution center, and vacant space.




Target Corporation Reports First Quarter 2019 Earnings - Page 11 of 12

TARGET CORPORATION
 
Reconciliation of Non-GAAP Financial Measures

To provide additional transparency, we have disclosed non-GAAP adjusted diluted earnings per share from continuing operations (Adjusted EPS). This metric excludes certain items presented below. We believe this information is useful in providing period-to-period comparisons of the results of our continuing operations. This measure is not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). The most comparable GAAP measure is diluted earnings per share from continuing operations (GAAP EPS). Adjusted EPS should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Other companies may calculate Adjusted EPS differently, limiting the usefulness of the measure for comparisons with other companies.
 
 
Three Months Ended
 
 
 
 
May 4, 2019
 
May 5, 2018
 
 
(millions, except per share data) (unaudited)
 
Pretax

 
Net of Tax

 
Per Share Amounts

 
Pretax

 
Net of Tax

 
Per Share Amounts

 
Change

GAAP diluted earnings per share from continuing operations
 
 
 
 
 
$
1.53

 
 
 
 
 
$
1.33

 
15.1
%
Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax matters (a)
 
$

 
$

 
$

 
$

 
$
(5
)
 
$
(0.01
)
 
 
Adjusted diluted earnings per share from continuing operations
 
 
 
 
 
$
1.53

 
 
 
 
 
$
1.32

 
15.9
%
Note: Amounts may not foot due to rounding.
(a) 
Represents certain income tax matters not related to current period operations.

Earnings from continuing operations before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation and amortization (EBITDA) are non-GAAP financial measures which we believe provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and for EBITDA, capital investment. These measures are not in accordance with, or an alternative to, GAAP. The most comparable GAAP measure is net earnings from continuing operations. EBIT and EBITDA should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Other companies may calculate EBIT and EBITDA differently, limiting the usefulness of the measure for comparisons with other companies.
EBIT and EBITDA
 
Three Months Ended
 
 

(millions) (unaudited)
 
May 4,
2019
 
May 5,
2018
 
Change
Net earnings from continuing operations
 
$
792

 
$
717

 
10.5
%
+ Provision for income taxes
 
229

 
210

 
9.2

+ Net interest expense
 
126

 
121

 
3.3

EBIT
 
$
1,147

 
$
1,048

 
9.4
%
+ Total depreciation and amortization (a)
 
644

 
631

 
2.0

EBITDA
 
$
1,791

 
$
1,679

 
6.6
%
(a) 
Represents total depreciation and amortization, including amounts classified within Depreciation and Amortization and within Cost of Sales.



Target Corporation Reports First Quarter 2019 Earnings - Page 12 of 12

We have also disclosed after-tax return on invested capital from continuing operations (ROIC), which is a ratio based on GAAP information. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.
After-Tax Return on Invested Capital
 
 
(dollars in millions) (unaudited)
 
 
 
 
 
 
Trailing Twelve Months
 
 
Numerator
 
May 4,
2019
 
May 5,
2018 (a)
 
 
Operating income
 
$
4,204

 
$
4,110

 
 
+ Net other income / (expense)
 
33

 
51

 
 
EBIT
 
4,237

 
4,161

 
 
+ Operating lease interest (b)
 
84

 
80

 
 
- Income taxes (c)(d)
 
878

 
692

 
 
Net operating profit after taxes
 
$
3,443

 
$
3,549

 
 

Denominator
 
May 4,
2019
 
May 5,
2018
 
April 29,
2017
Current portion of long-term debt and other borrowings
 
$
1,056

 
$
283

 
$
1,729

+ Noncurrent portion of long-term debt
 
11,357

 
11,107

 
10,916

+ Shareholders' equity
 
11,117

 
11,158

 
10,979

+ Operating lease liabilities (e)
 
2,231

 
2,157

 
2,049

- Cash and cash equivalents
 
1,173

 
1,060

 
2,680

- Net assets of discontinued operations (f)
 

 

 
17

Invested capital
 
$
24,588

 
$
23,645

 
$
22,976

Average invested capital (g)
 
$
24,116

 
$
23,310

 
 
After-tax return on invested capital (d)
 
14.3
%
 
15.2
%
 
 
After-tax return on invested capital excluding discrete impacts of Tax Act (d)
 
14.1
%
 
13.5
%
 
 
(a) 
Consisted of 53 weeks.
(b) 
Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases were owned or accounted for as finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within SG&A Expenses. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between us and our competitors.
(c) 
Calculated using the effective tax rates for continuing operations, which were 20.3 percent and 16.3 percent for the trailing twelve months ended May 4, 2019, and May 5, 2018, respectively. For the trailing twelve months ended May 4, 2019, and May 5, 2018, includes tax effect of $861 million and $679 million, respectively, related to EBIT, and $17 million and $13 million, respectively, related to operating lease interest.
(d) 
The effective tax rate for the trailing twelve months ended May 4, 2019, and May 5, 2018, includes discrete tax benefits of $36 million and $343 million related to the Tax Cuts and Jobs Act (Tax Act).
(e) 
Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities.
(f) 
Included in Other Assets and Liabilities.
(g) 
Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.