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†2007 cash flow from operations was $312. Cash flow from operations was impacted in 2007 by the securitization accounting change and, to a lesser extent, growth in
credit accounts receivable. 2007 adjusted cash flow from operations of $975 is a non-GAAP financial measure and is calculated as follows: cash flow from operations of
$312, plus the impact of $1,083 related to accounts receivable, and less the impact of $420 related to the investment in asset-backed securities, both primarily related to
the securitization accounting change. We believe that adjusted cash flow from operations is a useful measure for investors to understand the effect of the securitization
accounting change in comparing 2007 results to other years. It should not be considered a substitute for cash flow from operations.
2006 2007 2008 2009 2010
7.5 3.9 (9.0) (4.2) 8.1
2007†
5.06 5.41
5.16 5.20 1,251 1,177
1,142 975
848
8.1
10.2
12.8 12.9
7.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
5.56
2006 2008 2009 2010
(Adjusted total)
26.5 26.7 28.7 29.8
2006 2007
37.5 37.4
2008
34.5
2009
35.5
2010 2006 2007 2008 2009 2010
36.7 28.8
423
2006 2007 2008 2009 2010
368 397
435
388
Total Retail Business
Credit Business
312
25.5 25.9
24.5 25.4 25.5
Fiscal Year 2010 2009 % Change
Net sales $9,310 $8,258 12.7
Earnings before income taxes 991 696 42.5
Net earnings 613 441 39.0
Earnings per basic share 2.80 2.03 37.9
Earnings per diluted share 2.75 2.01 36.8
Cash dividends paid per share 0.76 0.64 18.8
SALES PER SQUARE FOOT ($)
SAME-STORE SALES PERCENTAGE CHANGE
GROSS PROFIT
(As a Percentage of Net Sales)
SG&A EXPENSE
(As a Percentage of Net Sales)
EARNINGS BEFORE INCOME TAXES
(As a Percentage of Total Revenues)
INVENTORY TURN
(Cost of Sales and Related Buying and
Occupancy Divided by Average Inventory)
CASH FLOW FROM OPERATIONS ($)
SCORECARD
Dollars in millions except per share and per square foot amounts