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31
The components of the 3.6% revenue decrease in fiscal 2013 (11-month) were as follows:
Comparable store sales impact (3.3)%
Net store changes (0.3)%
Non-comparable sales channels(1) (0.1)%
Impact of foreign currency exchange rate fluctuations 0.1 %
Total revenue decrease (3.6)%
(1) Non-comparable sales reflects the impact of revenue streams not included within our comparable store sales calculation, such as certain credit card
revenue, gift card breakage and sales of merchandise to wholesalers and dealers, as applicable.
Our gross profit rate decreased 0.7% of revenue in fiscal 2013 (11-month). Our Domestic and International segments
contributed a rate decrease of 0.6% of revenue and 0.1% of revenue, respectively. For further discussion of each segment's
gross profit rate changes, see Segment Performance Summary, below.
The SG&A rate increased 1.2% of revenue in fiscal 2013 (11-month). Our Domestic and International segments contributed a
rate increase of 0.8% of revenue and 0.4% of revenue, respectively. For further discussion of each segment's SG&A rate
changes, see Segment Performance Summary, below.
We recorded restructuring charges of $415 million in fiscal 2013 (11-month), which included $1 million of inventory write-
downs recorded in cost of goods sold. Our Domestic segment recorded $328 million of restructuring charges, including $1
million of inventory write-downs, in fiscal 2013 (11-month), and our International segment recorded $87 million of
restructuring charges in fiscal 2013 (11-month). These restructuring charges resulted in a decrease in our operating income in
fiscal 2013 (11-month) of 1.0% of revenue. We recorded $43 million of restructuring charges in fiscal 2012 (11-month recast),
which included $19 million of inventory write-downs recorded in cost of goods sold. Our Domestic and International segments
recorded $38 million and $5 million of restructuring charges, respectively, in fiscal 2012 (11-month recast). The restructuring
charges recorded in fiscal 2012 (11-month recast) resulted in a decrease in our operating income rate of 0.1% of revenue. For
further discussion of each segment’s restructuring charges, see Segment Performance Summary, below.
Our operating income decreased $2.0 billion, or 106.3%, and our operating loss as a percent of revenue decreased to 0.3% of
revenue in fiscal 2013 (11-month), compared to operating income of 4.6% of revenue in fiscal 2012 (11-month recast). The
decrease in our operating income was due to an increase in goodwill impairments, a decrease in gross profit as a result of a
decrease in revenue and a decline in the gross profit rate, an increase in restructuring charges and an increase in SG&A.
Segment Performance Summary
Domestic
The following table presents selected financial data for our Domestic segment for each of the past three fiscal years and fiscal
2012 (11-month recast) ($ in millions):
12-Month 11-Month 12-Month
Domestic Segment Performance Summary 2014 2013 2012 2012
(recast)
Revenue $35,831 $33,222 $34,102 $37,596
Revenue gain (decline) % 7.9 % (2.6)% n/a 1.4 %
Comparable store sales decline % (0.4)% (1.7)% (1.6)% (1.6)%
Gross profit $ 8,274 $ 7,789 $ 8,227 $ 9,179
Gross profit as a % of revenue 23.1 % 23.4 % 24.1 % 24.4 %
SG&A $ 7,006 $ 6,728 $ 6,554 $ 7,191
SG&A as a % of revenue 19.6 % 20.3 % 19.2 % 19.1 %
Restructuring charges $ 123 $ 327 $ 19 $ 24
Goodwill impairments $ — $ 3 $ — $ —
Operating income $ 1,145 $ 731 $ 1,654 $ 1,964
Operating income as a % of revenue 3.2 % 2.2 % 4.9 % 5.2 %