Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Aug. 02, 2014 | Aug. 22, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'TARGET CORP | ' |
Entity Central Index Key | '0000027419 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 2-Aug-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 633,716,483 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Sales | $17,406 | $17,117 | $34,456 | $33,823 | ||||
Cost of sales | 12,165 | 11,745 | 24,232 | 23,308 | ||||
Selling, general and administrative expenses | 3,816 | 3,698 | 7,409 | 7,287 | ||||
Depreciation and amortization | 606 | 542 | 1,186 | 1,079 | ||||
Gain on receivables transaction | 0 | 0 | 0 | [1] | -391 | [1] | ||
Earnings before interest expense and income taxes | 819 | 1,132 | 1,629 | 2,540 | ||||
Net interest expense | 453 | 171 | 622 | 801 | ||||
Earnings before income taxes | 366 | 961 | 1,007 | 1,739 | ||||
Provision for income taxes | 132 | 350 | 354 | 629 | ||||
Net earnings | $234 | $611 | $653 | $1,110 | ||||
Basic earnings per share (in dollars per share) | $0.37 | $0.96 | $1.03 | $1.74 | ||||
Diluted earnings per share (in dollars per share) | $0.37 | $0.95 | $1.02 | $1.72 | ||||
Weighted average common shares outstanding | ' | ' | ' | ' | ||||
Basic (in shares) | 633.5 | 634.8 | 633.4 | 638.4 | ||||
Dilutive impact of share-based awards (in shares) | 4.9 | [2] | 7.2 | [2] | 4.9 | [2] | 7.3 | [2] |
Diluted (in shares) | 638.4 | 642 | 638.3 | 645.7 | ||||
[1] | Refer to Note 3 for more information on our credit card receivables transaction. | |||||||
[2] | Excludes 5.1 million and 5.2 million share-based awards for the three and six months ended August 2, 2014, respectively, and 0.1 million and 2.2 million share-based awards for the three and six months ended August 3, 2013, respectively, because their effects were antidilutive. |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Unaudited) (Parenthetical) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Antidilutive share-based awards excluded from the calculation of weighted average shares for diluted EPS | 5.1 | 0.1 | 5.2 | 2.2 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $234 | $611 | $653 | $1,110 |
Other comprehensive income/(loss), net of tax | ' | ' | ' | ' |
Pension and other benefit liabilities, net of taxes of $4, $8, $8 and $34 | 7 | 12 | 14 | 52 |
Currency translation adjustment and cash flow hedges, net of taxes of $1, $(2), $1 and $7 | 23 | -100 | 85 | -129 |
Other comprehensive income/(loss) | 30 | -88 | 99 | -77 |
Comprehensive income | $264 | $523 | $752 | $1,033 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Pension and other benefit liabilities, taxes | $4 | $8 | $8 | $34 |
Currency translation adjustment and cash flow hedges, taxes | $1 | ($2) | $1 | $7 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (Unaudited) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 03, 2013 |
In Millions, unless otherwise specified | |||
Assets | ' | ' | ' |
Cash and cash equivalents, including short-term investments of $3, $3 and $249 | $803 | $695 | $1,018 |
Inventory | 8,918 | 8,766 | 8,441 |
Other current assets | 1,833 | 2,112 | 1,944 |
Total current assets | 11,554 | 11,573 | 11,403 |
Property and equipment | ' | ' | ' |
Land | 6,202 | 6,234 | 6,213 |
Buildings and improvements | 30,782 | 30,356 | 29,336 |
Fixtures and equipment | 5,466 | 5,583 | 5,351 |
Computer hardware and software | 2,683 | 2,764 | 2,532 |
Construction-in-progress | 735 | 843 | 1,456 |
Accumulated depreciation | -14,673 | -14,402 | -13,483 |
Property and equipment, net | 31,195 | 31,378 | 31,405 |
Other noncurrent assets | 1,706 | 1,602 | 1,354 |
Total assets | 44,455 | 44,553 | 44,162 |
Liabilities and shareholders’ investment | ' | ' | ' |
Accounts payable | 7,263 | 7,683 | 7,078 |
Accrued and other current liabilities | 3,767 | 3,934 | 3,705 |
Current portion of long-term debt and other borrowings | 306 | 1,160 | 1,833 |
Total current liabilities | 11,336 | 12,777 | 12,616 |
Long-term debt and other borrowings | 13,852 | 12,622 | 12,655 |
Deferred income taxes | 1,317 | 1,433 | 1,331 |
Other noncurrent liabilities | 1,517 | 1,490 | 1,540 |
Total noncurrent liabilities | 16,686 | 15,545 | 15,526 |
Shareholders’ investment | ' | ' | ' |
Common stock | 53 | 53 | 53 |
Additional paid-in capital | 4,561 | 4,470 | 4,335 |
Retained earnings | 12,611 | 12,599 | 12,285 |
Accumulated other comprehensive loss | ' | ' | ' |
Pension and other benefit liabilities | -408 | -422 | -480 |
Currency translation adjustment and cash flow hedges | -384 | -469 | -173 |
Total shareholders’ investment | 16,433 | 16,231 | 16,020 |
Total liabilities and shareholders’ investment | $44,455 | $44,553 | $44,162 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Unaudited) (Parenthetical) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 03, 2013 |
In Millions, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Cash and cash equivalents, short-term investments | $3 | $3 | $249 |
Common Stock, shares authorized | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 |
Common Stock, par value (in dollars per share) | $0.08 | $0.08 | $0.08 |
Common Stock, shares issued | 633,644,605 | 632,930,740 | 630,924,647 |
Common Stock, shares outstanding | 633,644,605 | 632,930,740 | 630,924,647 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Preferred Stock, shares issued | 0 | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 | 0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | ||
Operating activities | ' | ' | ||
Net earnings | $653 | $1,110 | ||
Adjustments to reconcile net earnings to cash provided by operations: | ' | ' | ||
Depreciation and amortization | 1,186 | 1,079 | ||
Share-based compensation expense | 42 | 55 | ||
Deferred income taxes | -304 | -136 | ||
Bad debt expense | 0 | [1] | 41 | [1] |
Gain on receivables transaction | 0 | [2] | -391 | [2] |
Loss on debt extinguishment | 285 | 445 | ||
Noncash (gains)/losses and other, net | 32 | -2 | ||
Changes in operating accounts: | ' | ' | ||
Accounts receivable originated at Target | 0 | 157 | ||
Proceeds on sale of accounts receivable originated at Target | 0 | 2,703 | ||
Inventory | -143 | -527 | ||
Other current assets | 303 | -56 | ||
Other noncurrent assets | 10 | 47 | ||
Accounts payable | -425 | 17 | ||
Accrued and other current liabilities | -156 | -403 | ||
Other noncurrent liabilities | 31 | -30 | ||
Cash provided by operations | 1,514 | 4,109 | ||
Investing activities | ' | ' | ||
Expenditures for property and equipment | -1,052 | -1,917 | ||
Proceeds from disposal of property and equipment | 44 | 48 | ||
Change in accounts receivable originated at third parties | 0 | 121 | ||
Proceeds from sale of accounts receivable originated at third parties | 0 | 3,002 | ||
Cash paid for acquisitions, net of cash assumed | -20 | -58 | ||
Other investments | 46 | 73 | ||
Cash (required for)/provided by investing activities | -982 | 1,269 | ||
Financing activities | ' | ' | ||
Change in commercial paper, net | 109 | -163 | ||
Proceeds from Issuance of Long-term Debt | 1,993 | 0 | ||
Reductions of long-term debt | -2,039 | -3,424 | ||
Dividends paid | -545 | -463 | ||
Repurchase of stock | 0 | -1,461 | ||
Stock option exercises and related tax benefit | 55 | 363 | ||
Cash (required for) financing activities | -427 | -5,148 | ||
Effect of exchange rate changes on cash and cash equivalents | 3 | 4 | ||
Net increase in cash and cash equivalents | 108 | 234 | ||
Cash and cash equivalents at beginning of period | 695 | 784 | ||
Cash and cash equivalents at end of period | $803 | $1,018 | ||
[1] | Includes net write-offs of credit card receivables prior to the sale of receivables on March 13, 2013 | |||
[2] | Refer to Note 3 for more information on our credit card receivables transaction. |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Investment (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Aug. 02, 2014 | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 |
Increase (Decrease) in Shareholders' Investment | ' | ' | ' | ' |
Balance | ' | $16,231 | $16,558 | $16,558 |
Balance (in shares) | ' | 632,930,740 | ' | ' |
Net earnings | 234 | 653 | 1,110 | 1,971 |
Other comprehensive income | 30 | 99 | -77 | -315 |
Dividends declared | ' | -606 | ' | -1,051 |
Repurchase of stock | ' | -35 | ' | -1,478 |
Stock options and awards | ' | 91 | ' | 546 |
Balance | 16,433 | 16,433 | 16,020 | 16,231 |
Balance (in shares) | 633,644,605 | 633,644,605 | 630,924,647 | 632,930,740 |
Common Stock | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Investment | ' | ' | ' | ' |
Balance | ' | 53 | 54 | 54 |
Balance (in shares) | ' | 632,900,000 | 645,300,000 | 645,300,000 |
Repurchase of stock | ' | 0 | ' | -2 |
Repurchase of stock (in shares) | ' | -600,000 | ' | -21,900,000 |
Stock options and awards | ' | 0 | ' | 1 |
Stock options and awards (in shares) | ' | 1,300,000 | ' | 9,500,000 |
Balance | 53 | 53 | ' | 53 |
Balance (in shares) | 633,600,000 | 633,600,000 | ' | 632,900,000 |
Additional Paid-in Capital | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Investment | ' | ' | ' | ' |
Balance | ' | 4,470 | 3,925 | 3,925 |
Stock options and awards | ' | 91 | ' | 545 |
Balance | 4,561 | 4,561 | ' | 4,470 |
Retained Earnings | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Investment | ' | ' | ' | ' |
Balance | ' | 12,599 | 13,155 | 13,155 |
Net earnings | ' | 653 | ' | 1,971 |
Dividends declared | ' | -606 | ' | -1,051 |
Repurchase of stock | ' | -35 | ' | -1,476 |
Balance | 12,611 | 12,611 | ' | 12,599 |
Accumulated Other Comprehensive Income/(Loss) | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Investment | ' | ' | ' | ' |
Balance | ' | -891 | -576 | -576 |
Other comprehensive income | ' | 99 | ' | -315 |
Balance | ($792) | ($792) | ' | ($891) |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Investment (Unaudited) (Parenthetical) (USD $) | 6 Months Ended | 12 Months Ended | |
Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Dividends declared per share (in dollars per share) | $0.95 | $0.79 | $1.65 |
Accounting_Policies
Accounting Policies | 6 Months Ended |
Aug. 02, 2014 | |
Accounting Policies [Abstract] | ' |
Accounting Policies | ' |
Accounting Policies | |
These financial statements should be read in conjunction with the financial statement disclosures in our 2013 Form 10-K. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. | |
Due to the seasonal nature of our business, quarterly revenues, expenses, earnings and cash flows are not necessarily indicative of the results that may be expected for the full year. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||
Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements - Recurring Basis | ||||||||||||||||||||||||||||||||||||
Fair Value at | Fair Value at | Fair Value at | ||||||||||||||||||||||||||||||||||
August 2, 2014 | February 1, 2014 | August 3, 2013 | ||||||||||||||||||||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | 249 | $ | — | $ | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||
Interest rate swaps(a) | — | — | — | — | 1 | — | — | — | — | |||||||||||||||||||||||||||
Prepaid forward contracts | 40 | — | — | 73 | — | — | 73 | — | — | |||||||||||||||||||||||||||
Beneficial interest asset(b) | — | — | 56 | — | — | 71 | — | — | 91 | |||||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||||||||||||||
Interest rate swaps(a) | — | 51 | — | — | 62 | — | — | 74 | — | |||||||||||||||||||||||||||
Company-owned life insurance investments(c) | — | 314 | — | — | 305 | — | — | 297 | — | |||||||||||||||||||||||||||
Beneficial interest asset(b) | — | — | 41 | — | — | 56 | — | — | 89 | |||||||||||||||||||||||||||
Total | $ | 43 | $ | 365 | $ | 98 | $ | 76 | $ | 368 | $ | 127 | $ | 322 | $ | 371 | $ | 180 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||||||
Interest rate swaps(a) | — | 31 | — | — | 39 | — | — | 45 | — | |||||||||||||||||||||||||||
Total | $ | — | $ | 31 | $ | — | $ | — | $ | 39 | $ | — | $ | — | $ | 45 | $ | — | ||||||||||||||||||
(a) See Note 7 for additional information on interest rate swaps. | ||||||||||||||||||||||||||||||||||||
(b) Note 3 includes a rollforward of the Level 3 beneficial interest asset. A one percentage point change in the forecasted credit EBIT yield would impact our fair value estimate by approximately $14 million. A one percentage point change in the forecasted discount rate would impact our fair value estimate by approximately $3 million. | ||||||||||||||||||||||||||||||||||||
(c) Company-owned life insurance investments consist of equity index funds and fixed income assets. Amounts are presented net of nonrecourse loans that are secured by some of these policies. These loan amounts totaled $806 million at August 2, 2014, $790 million at February 1, 2014 and $787 million at August 3, 2013. | ||||||||||||||||||||||||||||||||||||
Significant Financial Instruments not Measured at Fair Value (a) | 2-Aug-14 | 1-Feb-14 | 3-Aug-13 | |||||||||||||||||||||||||||||||||
(millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||||||||||||
Debt (b) | $ | 12,135 | $ | 13,553 | $ | 11,758 | $ | 13,184 | $ | 12,484 | $ | 14,018 | ||||||||||||||||||||||||
(a) The carrying amounts of accounts payable and certain accrued and other current liabilities approximate fair value due to their short-term nature. | ||||||||||||||||||||||||||||||||||||
(b) The carrying amount and estimated fair value of debt exclude unamortized swap valuation adjustments and capital lease obligations. |
Credit_Card_Receivables_Transa
Credit Card Receivables Transaction | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Credit Card Receivables Transaction | ' | |||||||||||||||
Credit Card Receivables Transaction | ' | |||||||||||||||
Credit Card Receivables Transaction | ||||||||||||||||
In March 2013, we sold our entire U.S. consumer credit card portfolio to TD Bank Group (TD) and recognized a gain of $391 million. This transaction was accounted for as a sale, and the receivables are no longer reported in our Consolidated Statements of Financial Position. Consideration received included cash of $5.7 billion, equal to the gross (par) value of the outstanding receivables at the time of closing, and a $225 million beneficial interest asset. Concurrent with the sale, we repaid the nonrecourse debt collateralized by credit card receivables (2006/2007 Series Variable Funding Certificate) at par of $1.5 billion, resulting in net cash proceeds of $4.2 billion. | ||||||||||||||||
TD now underwrites, funds and owns Target Credit Card and Target Visa consumer receivables in the U.S. TD controls risk management policies and oversees regulatory compliance, and we perform account servicing and primary marketing functions. We earn a substantial portion of the profits generated by the Target Credit Card and Target Visa portfolios. We classify this profit-sharing income in SG&A expense in the U.S. Segment. | ||||||||||||||||
Profit-Sharing Arrangement | Three Months Ended | Six Months Ended | ||||||||||||||
(millions) | August 2, | August 3, | August 2, | August 3, | ||||||||||||
2014 | 2013 | 2014 | 2013 (a) | |||||||||||||
Profit-sharing included in U.S. Segment EBIT | $ | 167 | $ | 183 | $ | 334 | $ | 288 | ||||||||
Reduction of beneficial interest asset (b) | (11 | ) | (29 | ) | (29 | ) | (45 | ) | ||||||||
Net impact to SG&A expense | $ | 156 | $ | 154 | $ | 305 | $ | 243 | ||||||||
(a) The U.S. Segment also earned credit card revenue prior to the close of the transaction. | ||||||||||||||||
(b) On a consolidated basis, profit-sharing income is offset by reductions of the beneficial interest asset. | ||||||||||||||||
The $225 million beneficial interest asset effectively represents a receivable for the present value of future profit-sharing we expect to receive on the receivables sold. Profit-sharing payments reduced the beneficial interest asset by $19 million and $39 million during the three and six months ended August 2, 2014, respectively, and $31 million and $45 million during the three and six months ended August 3, 2013. Revaluation adjustments increased the asset by $8 million and $10 million during the three and six months ended August 2, 2014, respectively, and increased the asset by $2 million during the three months ended August 3, 2013. There was no net revaluation adjustment for the six months ended August 3, 2013. As of August 2, 2014 and August 3, 2013, a beneficial interest asset of $98 million and $180 million, respectively, remains and is recorded within other current assets and other noncurrent assets in our Consolidated Statements of Financial Position. |
Notes_Payable_and_LongTerm_Deb
Notes Payable and Long-Term Debt | 6 Months Ended | ||||||||||||||
Aug. 02, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Notes Payable and Long-Term Debt | ' | ||||||||||||||
Notes Payable and Long-Term Debt | |||||||||||||||
We obtain short-term financing from time to time under our commercial paper program, a form of notes payable. | |||||||||||||||
Commercial Paper | Three Months Ended | Six Months Ended | |||||||||||||
(dollars in millions) | August 2, | August 3, | August 2, | August 3, | |||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Maximum daily amount outstanding during the period | $ | 500 | $ | 920 | $ | 590 | $ | 1,465 | |||||||
Average daily amount outstanding during the period | 148 | 301 | 214 | 394 | |||||||||||
Amount outstanding at period-end | 189 | 807 | 189 | 807 | |||||||||||
Weighted average interest rate | 0.11 | % | 0.19 | % | 0.1 | % | 0.14 | % | |||||||
In June 2014, we issued $1 billion of unsecured fixed rate debt at 2.3% that matures in June 2019 and $1 billion of unsecured fixed rate debt at 3.5% that matures in July 2024. We used proceeds from these issuances to repurchase $725 million of debt at a market value of $1 billion and for general corporate purposes, including the payment of $1 billion of debt maturities. We recognized a loss of $285 million on the early retirement, which was recorded in net interest expense in our Consolidated Statements of Operations. | |||||||||||||||
Concurrent with the sale of our credit card receivables portfolio in March 2013, we repaid $1.5 billion of nonrecourse debt collateralized by credit card receivables (the 2006/2007 Series Variable Funding Certificate). We also used $1.4 billion of proceeds from the transaction to repurchase at market value an additional $970 million of debt during the first quarter of 2013. We recognized a loss on this early retirement of $445 million, which was recorded in net interest expense in our Consolidated Statements of Operations. Refer to Note 3 for more information on our credit card receivables transaction. |
Property_and_Equipment_Notes
Property and Equipment (Notes) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Property, Plant and Equipment Impairment or Disposal [Abstract] | ' | |||||||||||||||
Property and Equipment | ' | |||||||||||||||
Property and Equipment | ||||||||||||||||
We review long-lived assets for impairment when events or changes in circumstances, such as a decision to relocate or close a store, make significant software changes or discontinue projects, indicate that the asset's carrying value may not be recoverable. For the three and six months ended August 2, 2014 and August 3, 2013, we recorded impairments primarily from decisions to discontinue projects and completed or planned land sales and store closures. | ||||||||||||||||
Impairments by Segment (a) | Three Months Ended | Six Months Ended | ||||||||||||||
(millions) | August 2, | August 3, | August 2, | August 3, | ||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
U.S. | $ | 46 | $ | 15 | $ | 59 | $ | 25 | ||||||||
Canadian | 2 | — | 2 | — | ||||||||||||
Total segment impairments | 48 | 15 | 61 | 25 | ||||||||||||
Unallocated impairments (b) | 16 | — | 16 | — | ||||||||||||
Total impairments | $ | 64 | $ | 15 | $ | 77 | $ | 25 | ||||||||
(a) Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Income. | ||||||||||||||||
(b) Represents impairments of undeveloped land. |
Data_Breach
Data Breach | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Data Breach | ' | |||||||
Data Breach | ||||||||
In the fourth quarter of 2013, we experienced a data breach in which an intruder stole certain payment card and other guest information from our network (the Data Breach). Based on our investigation to date, we believe that the intruder installed malware on our point-of-sale system in our U.S. stores and stole payment card data from up to approximately 40 million credit and debit card accounts of guests who shopped at our U.S. stores between November 27 and December 17, 2013. In addition, the intruder stole certain guest information, including names, mailing addresses, phone numbers or email addresses, for up to 70 million individuals. | ||||||||
Payment Card Network Loss Contingencies | ||||||||
In the event of a data breach where payment card data is or may have been stolen, the payment card networks’ contracts purport to give them the ability to make claims for reimbursement of incremental counterfeit fraud losses and non-ordinary course operating expenses (such as card reissuance costs) that the payment card networks believe they or their issuing banks have incurred as a result of the event. For us to have liability for such claims, we believe that a court would have to find that, among other things, (1) at the time of the Data Breach the portion of our network that handles payment card data was noncompliant with applicable data security standards in a manner that contributed to the Data Breach, and (2) the network operating rules around reimbursement of operating costs and counterfeit fraud losses are enforceable. While an independent third-party assessor found the portion of our network that handles payment card data to be compliant with applicable data security standards in the fall of 2013, the forensic investigator working on behalf of the payment card networks claimed in first quarter 2014 that we were not in compliance with those standards at the time of the Data Breach. | ||||||||
During the second quarter of 2014, payment card networks composing a substantial portion of impacted payment cards made preliminary written or oral claims against us. We believe it is probable that the remaining payment card networks will also make claims against us. We expect to dispute the claims that have been or may be made against us, and we think it is probable that our disputes would lead to settlement negotiations consistent with the experience of other entities that suffered similar payment card breaches. We believe such negotiations would effect a combined settlement of the payment card networks' counterfeit fraud loss allegations and their non-ordinary course operating expense allegations. Our accruals for estimated probable loss discussed below include what we believe to be the vast majority of both actual and potential claims from the payment card networks. | ||||||||
Litigation and Governmental Investigations | ||||||||
In addition, more than 100 actions have been filed in courts in many states, along with one action in Canada, and other claims have been or may be asserted against us on behalf of guests, payment card issuing banks, shareholders or others seeking damages or other related relief allegedly arising out of the Data Breach. State and federal agencies, including the State Attorneys General, the Federal Trade Commission and the SEC, are investigating events related to the Data Breach, including how it occurred, its consequences and our responses. Our accruals for estimated probable loss discussed below include what we believe to be the vast majority of both actual and potential claims from these matters. | ||||||||
Expenses Incurred and Amounts Accrued | ||||||||
Data Breach Balance Sheet Rollforward | Liabilities | Insurance receivable | ||||||
(millions) | ||||||||
Balance at February 1, 2014 | $ | 61 | $ | 44 | ||||
Expenses incurred/insurance receivable recorded (a) | 26 | 8 | ||||||
Payments made/received | (35 | ) | (13 | ) | ||||
Balance at May 3, 2014 | 52 | 39 | ||||||
Expenses incurred/insurance receivable recorded (a) | 148 | 38 | ||||||
Payments made/received | (19 | ) | (7 | ) | ||||
Balance at August 2, 2014 | $ | 182 | $ | 70 | ||||
(a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below. | ||||||||
In the second quarter of 2014, we recorded $148 million of pretax Data Breach-related expenses and expected insurance proceeds of $38 million, for net expenses of $111 million. These expenses were included in our Consolidated Statements of Operations as Selling, General and Administrative Expenses (SG&A), but were not part of our segment results. Along with legal and other professional services, these expenses included an increase to the accrual for estimated probable losses for what we believe to be the vast majority of actual and potential breach-related claims, including claims by the payment card networks. Our probable loss estimate is based on the expectation of reaching negotiated settlements, and not on any determination that it is probable we would be found liable for the losses we have accrued were these claims to be litigated. Given the varying stages of claims and related proceedings, and the inherent uncertainty surrounding them, our estimates involve significant judgment and are based on currently available information, historical precedents and an assessment of the validity of certain claims. Our estimates may change as new information becomes available and, although we do not believe it is probable, it is reasonably possible that we may incur a material loss in excess of the amount accrued. We are not able to estimate the amount of such reasonably possible excess loss exposure at this time because many of the matters are in the early stages, alleged damages have not been specified, and there are significant factual and legal issues to be resolved. The accrual does not reflect future breach-related legal, consulting or administrative fees, which are expensed as incurred and not expected to be material to our consolidated financial statements in any individual period. | ||||||||
During the six months ended August 2, 2014, we recorded $175 million of Data Breach-related expenses, partially offset by expected insurance proceeds of $46 million, for net expenses of $129 million. Since the Data Breach, we have incurred $236 million of cumulative expenses, partially offset by expected insurance recoveries of $90 million, for net cumulative expenses of $146 million. | ||||||||
Insurance Coverage | ||||||||
To limit our exposure to losses relating to data breach and other claims, we maintain $100 million of network-security insurance coverage, above a $10 million deductible and with a $50 million sublimit for settlements with the payment card networks. This coverage, and certain other customary business-insurance coverage, has reduced our exposure related to the Data Breach. We will pursue recoveries to the maximum extent available under the policies. As of August 2, 2014, we have received $20 million from our network-security insurance carriers. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||
Aug. 02, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
Our derivative instruments primarily consist of interest rate swaps, which we use to mitigate interest rate risk. As a result of our use of derivative instruments, we have counterparty credit risk with large global financial institutions. We monitor this concentration of counterparty credit risk on an ongoing basis. See Note 2 for a description of the fair value measurement of our derivative instruments and their classification on the Consolidated Statements of Financial Position. | |||||||||||||||||
In June 2014, we entered into two interest rate swaps, each with a notional amount of $500 million, under which we pay a variable rate and receive a fixed rate. In March 2014, we entered into an interest rate swap with a notional amount of $250 million, under which we pay a variable rate and receive a fixed rate. We designated these swaps as fair value hedges. As of August 3, 2013, one swap was designated as a fair value hedge. No ineffectiveness was recognized during the three or six months ended August 2, 2014 or August 3, 2013. | |||||||||||||||||
Periodic payments, valuation adjustments and amortization of gains or losses on our derivative contracts had the following effect on our Consolidated Statements of Operations: | |||||||||||||||||
Derivative Contracts - Effect on Results of Operations | Three Months Ended | Six Months Ended | |||||||||||||||
(millions) | |||||||||||||||||
Type of Contract | Classification of (Income)/Expense | August 2, | August 3, | August 2, | August 3, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest rate swaps | Net interest expense | $ | (9 | ) | $ | (7 | ) | $ | (13 | ) | $ | (15 | ) | ||||
The amount remaining on unamortized hedged debt valuation gains from terminated or de-designated interest rate swaps that will be amortized into earnings over the remaining lives of the underlying debt totaled $43 million, $52 million and $63 million, at August 2, 2014, February 1, 2014 and August 3, 2013, respectively. |
Share_Repurchase
Share Repurchase | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Share Repurchase | ' | |||||||||||||||
Share Repurchase | ||||||||||||||||
We repurchase shares primarily through open market transactions and the noncash settlement of prepaid forward contracts related to nonqualified deferred compensation plans under a $5 billion share repurchase program authorized by our Board of Directors in January 2012. No shares were repurchased through open market transactions during the three and six months ended August 2, 2014. | ||||||||||||||||
Share Repurchases | Three Months Ended | Six Months Ended | ||||||||||||||
(millions, except per share data) | August 2, 2014 (a) | August 3, 2013 (b) | August 2, 2014 (a) | August 3, 2013 (b) | ||||||||||||
Total number of shares purchased | 0.6 | 13.3 | 0.6 | 21.9 | ||||||||||||
Average price paid per share | $ | 55.36 | $ | 69.57 | $ | 55.36 | $ | 67.41 | ||||||||
Total investment | $ | 34 | $ | 927 | $ | 34 | $ | 1,474 | ||||||||
(a) All of the shares reacquired were delivered upon the noncash settlement of prepaid forward contracts. These contracts had an original cash investment of $34 million and an aggregate market value at their settlement dates of $34.7 million. These contracts are among the investment vehicles used to reduce our economic exposure related to our nonqualified deferred compensation plans. Note 9 provides the details of our positions in prepaid forward contracts. | ||||||||||||||||
(b) 0.1 million and 0.2 million, respectively, of the shares repurchased were delivered upon the noncash settlement of prepaid forward contracts. These contracts had an original cash investment of $7 million and $14 million, and an aggregate market value at their respective settlement dates of $8 million and $17 million. Note 9 provides the details of our positions in prepaid forward contracts. |
Pension_Postretirement_Health_
Pension, Postretirement Health Care and Other Benefits | 6 Months Ended | |||||||||||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Pension, Postretirement Health Care and Other Benefits | ' | |||||||||||||||||||||||||||||||
Pension, Postretirement Health Care and Other Benefits | ||||||||||||||||||||||||||||||||
Pension and Postretirement Health Care Benefits | ||||||||||||||||||||||||||||||||
We provide qualified defined benefit pension plans, unfunded nonqualified pension plans and certain postretirement health care benefits to eligible team members. | ||||||||||||||||||||||||||||||||
Net Pension and Postretirement | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||||||||||||||||||
Health Care Benefits Expense | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
(millions) | Aug 2, | Aug 3, | Aug 2, | Aug 3, | Aug 2, | Aug 3, | Aug 2, | Aug 3, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Service cost | $ | 28 | $ | 29 | $ | 56 | $ | 59 | $ | 1 | $ | 1 | $ | 2 | $ | 3 | ||||||||||||||||
Interest cost | 37 | 34 | 75 | 69 | — | 1 | 1 | 1 | ||||||||||||||||||||||||
Expected return on assets | (59 | ) | (58 | ) | (117 | ) | (117 | ) | — | — | — | — | ||||||||||||||||||||
Amortization of losses | 17 | 25 | 33 | 50 | 2 | 2 | 3 | 3 | ||||||||||||||||||||||||
Amortization of prior service cost | (3 | ) | (2 | ) | (6 | ) | (5 | ) | (4 | ) | (4 | ) | (8 | ) | (8 | ) | ||||||||||||||||
Total | $ | 20 | $ | 28 | $ | 41 | $ | 56 | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (1 | ) | |||||||||||||
Other Benefits | ||||||||||||||||||||||||||||||||
We offer unfunded nonqualified deferred compensation plans to certain team members. We mitigate some of our risk of these plans through investing in vehicles, including company-owned life insurance and prepaid forward contracts in our own common stock, that offset a substantial portion of our economic exposure to the returns of these plans. These investment vehicles are general corporate assets and are marked to market with the related gains and losses recognized in the Consolidated Statements of Operations in the period they occur. | ||||||||||||||||||||||||||||||||
The total change in fair value for contracts indexed to our own common stock recognized in earnings was pretax losses of $5 million and pretax income of $2 million for the three and six months ended August 2, 2014, respectively, and pretax income of $1 million and $12 million for the three and six months ended August 3, 2013. During the six months ended August 2, 2014 we made no investments in prepaid forward contracts in our own common stock. During the six months ended August 3, 2013, we invested $6 million in such investment instruments. Adjusting our position in these investment vehicles may involve repurchasing shares of Target common stock when settling the forward contracts as described in Note 8. The settlement dates of these instruments are regularly renegotiated with the counterparty. | ||||||||||||||||||||||||||||||||
Prepaid Forward Contracts on Target Common Stock | August 2, | February 1, | August 3, | |||||||||||||||||||||||||||||
(millions, except per share data) | 2014 | 2014 | 2013 | |||||||||||||||||||||||||||||
Number of Shares | 0.7 | 1.3 | 1 | |||||||||||||||||||||||||||||
Contractual Price Paid per Share | $ | 42.88 | $ | 48.81 | $ | 45.01 | ||||||||||||||||||||||||||
Fair Value | $ | 40 | $ | 73 | $ | 73 | ||||||||||||||||||||||||||
Total Cash Investment | $ | 29 | $ | 63 | $ | 46 | ||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
(millions) | Cash Flow | Currency | Pension and | Total | ||||||||||||
Hedges | Translation | Other | ||||||||||||||
Adjustment | Benefits | |||||||||||||||
February 2, 2013 | $ | (29 | ) | $ | (15 | ) | $ | (532 | ) | $ | (576 | ) | ||||
Other comprehensive income before reclassifications | — | (30 | ) | 28 | (2 | ) | ||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 12 | (b) | 13 | ||||||||||
4-May-13 | $ | (28 | ) | $ | (45 | ) | $ | (492 | ) | $ | (565 | ) | ||||
Other comprehensive income before reclassifications | — | (101 | ) | — | (101 | ) | ||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 12 | (b) | 13 | ||||||||||
3-Aug-13 | $ | (27 | ) | $ | (146 | ) | $ | (480 | ) | $ | (653 | ) | ||||
February 1, 2014 | $ | (25 | ) | $ | (444 | ) | $ | (422 | ) | $ | (891 | ) | ||||
Other comprehensive income before reclassifications | — | 61 | — | 61 | ||||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 7 | (b) | 8 | ||||||||||
3-May-14 | $ | (24 | ) | $ | (383 | ) | $ | (415 | ) | $ | (822 | ) | ||||
Other comprehensive income before reclassifications | — | 22 | — | 22 | ||||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 7 | (b) | 8 | ||||||||||
2-Aug-14 | $ | (23 | ) | $ | (361 | ) | $ | (408 | ) | $ | (792 | ) | ||||
(a) Represents gains and losses on cash flow hedges, net of $1 million of taxes, which is recorded in net interest expense on the Consolidated Statements of Operations. | ||||||||||||||||
(b) Represents amortization of pension and other benefit liabilities, net of $4 million of taxes for the three months ended May 3, 2014 and August 2, 2014, respectively, and $8 million for the three months ended May 4, 2013 and August 3, 2013. |
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||
We operate as two segments: U.S. and Canadian. Our segment measure of profit is used by management to evaluate the return on our investment and to make operating decisions. | ||||||||||||||||||||||||
Business Segment Results | Three Months Ended August 2, 2014 | Three Months Ended August 3, 2013 | ||||||||||||||||||||||
(millions) | U.S. | Canadian | Total | U.S. | Canadian | Total | ||||||||||||||||||
Sales | $ | 16,957 | $ | 449 | $ | 17,406 | $ | 16,841 | $ | 275 | $ | 17,117 | ||||||||||||
Cost of sales | 11,798 | 367 | 12,165 | 11,556 | 188 | 11,745 | ||||||||||||||||||
Gross margin | 5,159 | 82 | 5,241 | 5,285 | 87 | 5,372 | ||||||||||||||||||
Selling, general and administrative expenses (a)(e) | 3,462 | 216 | 3,678 | 3,462 | 207 | 3,669 | ||||||||||||||||||
Depreciation and amortization | 537 | 70 | 606 | 493 | 49 | 542 | ||||||||||||||||||
Segment profit | $ | 1,160 | $ | (204 | ) | $ | 957 | $ | 1,330 | $ | (169 | ) | $ | 1,161 | ||||||||||
Data Breach related costs, net of insurance receivable (c)(e) | (111 | ) | — | |||||||||||||||||||||
Reduction of beneficial interest asset (a)(e) | (11 | ) | (29 | ) | ||||||||||||||||||||
Undeveloped land impairments (e) | (16 | ) | — | |||||||||||||||||||||
Earnings before interest expense and income taxes | 819 | 1,132 | ||||||||||||||||||||||
Net interest expense | 453 | 171 | ||||||||||||||||||||||
Earnings before income taxes | $ | 366 | $ | 961 | ||||||||||||||||||||
Business Segment Results | Six Months Ended August 2, 2014 | Six Months Ended August 3, 2013 | ||||||||||||||||||||||
(millions) | U.S. | Canadian | Total | U.S. | Canadian | Total | ||||||||||||||||||
Sales | $ | 33,614 | $ | 842 | $ | 34,456 | $ | 33,462 | $ | 361 | $ | 33,823 | ||||||||||||
Cost of sales | 23,546 | 686 | 24,232 | 23,067 | 241 | 23,308 | ||||||||||||||||||
Gross margin | 10,068 | 156 | 10,224 | 10,395 | 120 | 10,515 | ||||||||||||||||||
Selling, general and administrative expenses (a)(e) | 6,788 | 434 | 7,222 | 6,842 | 400 | 7,242 | ||||||||||||||||||
Depreciation and amortization | 1,049 | 137 | 1,186 | 984 | 94 | 1,079 | ||||||||||||||||||
Segment profit | $ | 2,231 | $ | (415 | ) | $ | 1,816 | $ | 2,569 | $ | (374 | ) | $ | 2,194 | ||||||||||
Data Breach related costs, net of insurance receivable (c)(e) | (129 | ) | — | |||||||||||||||||||||
Reduction of beneficial interest asset (a)(e) | (29 | ) | (45 | ) | ||||||||||||||||||||
Undeveloped land impairments (e) | (16 | ) | — | |||||||||||||||||||||
Card brand conversion costs (d)(e) | (13 | ) | — | |||||||||||||||||||||
Gain on receivables transaction (b) | — | 391 | ||||||||||||||||||||||
Earnings before interest expense and income taxes | 1,629 | 2,540 | ||||||||||||||||||||||
Net interest expense | 622 | 801 | ||||||||||||||||||||||
Earnings before income taxes | $ | 1,007 | $ | 1,739 | ||||||||||||||||||||
Note: The sum of the segment amounts may not equal the total amounts due to rounding. | ||||||||||||||||||||||||
(a) Our U.S. Segment includes all TD profit-sharing amounts in segment EBIT; however, under GAAP, some amounts received from TD reduce the beneficial interest asset and are not recorded in consolidated earnings. | ||||||||||||||||||||||||
(b) Refer to Note 3 for more information on our credit card receivables transaction. | ||||||||||||||||||||||||
(c) Refer to Note 6 for more information on Data Breach related costs. | ||||||||||||||||||||||||
(d) Expense related to converting co-branded card program to MasterCard. | ||||||||||||||||||||||||
(e) The sum of segment SG&A expenses, reduction of beneficial interest asset, Data Breach related costs, undeveloped land impairments and card brand conversion costs equal consolidated SG&A expenses. | ||||||||||||||||||||||||
Total Assets by Segment | August 2, | February 1, | August 3, | |||||||||||||||||||||
(millions) | 2014 | 2014 | 2013 | |||||||||||||||||||||
U.S. | $ | 37,889 | $ | 38,128 | $ | 37,810 | ||||||||||||||||||
Canadian | 6,398 | 6,254 | 6,172 | |||||||||||||||||||||
Total segment assets | 44,287 | 44,382 | 43,982 | |||||||||||||||||||||
Unallocated assets (a) | 168 | 171 | 180 | |||||||||||||||||||||
Total assets | $ | 44,455 | $ | 44,553 | $ | 44,162 | ||||||||||||||||||
(a) Represents the beneficial interest asset and insurance receivable related to the Data Breach of $98 million and $70 million, respectively, at August 2, 2014, and $127 million and $44 million, respectively, at February 1, 2014. Represents the beneficial interest asset at August 3, 2013. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Fair Value Measurements - Recurring Basis | ' | |||||||||||||||||||||||||||||||||||
Fair Value Measurements - Recurring Basis | ||||||||||||||||||||||||||||||||||||
Fair Value at | Fair Value at | Fair Value at | ||||||||||||||||||||||||||||||||||
August 2, 2014 | February 1, 2014 | August 3, 2013 | ||||||||||||||||||||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | 249 | $ | — | $ | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||
Interest rate swaps(a) | — | — | — | — | 1 | — | — | — | — | |||||||||||||||||||||||||||
Prepaid forward contracts | 40 | — | — | 73 | — | — | 73 | — | — | |||||||||||||||||||||||||||
Beneficial interest asset(b) | — | — | 56 | — | — | 71 | — | — | 91 | |||||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||||||||||||||
Interest rate swaps(a) | — | 51 | — | — | 62 | — | — | 74 | — | |||||||||||||||||||||||||||
Company-owned life insurance investments(c) | — | 314 | — | — | 305 | — | — | 297 | — | |||||||||||||||||||||||||||
Beneficial interest asset(b) | — | — | 41 | — | — | 56 | — | — | 89 | |||||||||||||||||||||||||||
Total | $ | 43 | $ | 365 | $ | 98 | $ | 76 | $ | 368 | $ | 127 | $ | 322 | $ | 371 | $ | 180 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||||||
Interest rate swaps(a) | — | 31 | — | — | 39 | — | — | 45 | — | |||||||||||||||||||||||||||
Total | $ | — | $ | 31 | $ | — | $ | — | $ | 39 | $ | — | $ | — | $ | 45 | $ | — | ||||||||||||||||||
(a) See Note 7 for additional information on interest rate swaps. | ||||||||||||||||||||||||||||||||||||
(b) Note 3 includes a rollforward of the Level 3 beneficial interest asset. A one percentage point change in the forecasted credit EBIT yield would impact our fair value estimate by approximately $14 million. A one percentage point change in the forecasted discount rate would impact our fair value estimate by approximately $3 million. | ||||||||||||||||||||||||||||||||||||
(c) Company-owned life insurance investments consist of equity index funds and fixed income assets. Amounts are presented net of nonrecourse loans that are secured by some of these policies. These loan amounts totaled $806 million at August 2, 2014, $790 million at February 1, 2014 and $787 million at August 3, 2013. | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Significant Financial Instruments not Measured at Fair Value | ' | |||||||||||||||||||||||||||||||||||
Significant Financial Instruments not Measured at Fair Value (a) | 2-Aug-14 | 1-Feb-14 | 3-Aug-13 | |||||||||||||||||||||||||||||||||
(millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||||||||||||
Debt (b) | $ | 12,135 | $ | 13,553 | $ | 11,758 | $ | 13,184 | $ | 12,484 | $ | 14,018 | ||||||||||||||||||||||||
(a) The carrying amounts of accounts payable and certain accrued and other current liabilities approximate fair value due to their short-term nature. | ||||||||||||||||||||||||||||||||||||
(b) The carrying amount and estimated fair value of debt exclude unamortized swap valuation adjustments and capital lease obligations. |
Credit_Card_Receivables_Transa1
Credit Card Receivables Transaction Credit Card Receivables Transaction (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Credit Card Receivables Transaction | ' | |||||||||||||||
Profit-Sharing Arrangement | ' | |||||||||||||||
Profit-Sharing Arrangement | Three Months Ended | Six Months Ended | ||||||||||||||
(millions) | August 2, | August 3, | August 2, | August 3, | ||||||||||||
2014 | 2013 | 2014 | 2013 (a) | |||||||||||||
Profit-sharing included in U.S. Segment EBIT | $ | 167 | $ | 183 | $ | 334 | $ | 288 | ||||||||
Reduction of beneficial interest asset (b) | (11 | ) | (29 | ) | (29 | ) | (45 | ) | ||||||||
Net impact to SG&A expense | $ | 156 | $ | 154 | $ | 305 | $ | 243 | ||||||||
(a) The U.S. Segment also earned credit card revenue prior to the close of the transaction. | ||||||||||||||||
(b) On a consolidated basis, profit-sharing income is offset by reductions of the beneficial interest asset. |
Notes_Payable_and_LongTerm_Deb1
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended | ||||||||||||||
Aug. 02, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Commercial Paper | ' | ||||||||||||||
Commercial Paper | Three Months Ended | Six Months Ended | |||||||||||||
(dollars in millions) | August 2, | August 3, | August 2, | August 3, | |||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Maximum daily amount outstanding during the period | $ | 500 | $ | 920 | $ | 590 | $ | 1,465 | |||||||
Average daily amount outstanding during the period | 148 | 301 | 214 | 394 | |||||||||||
Amount outstanding at period-end | 189 | 807 | 189 | 807 | |||||||||||
Weighted average interest rate | 0.11 | % | 0.19 | % | 0.1 | % | 0.14 | % | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Property, Plant and Equipment Impairment or Disposal [Abstract] | ' | |||||||||||||||
Impairments by Segment | ' | |||||||||||||||
Impairments by Segment (a) | Three Months Ended | Six Months Ended | ||||||||||||||
(millions) | August 2, | August 3, | August 2, | August 3, | ||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
U.S. | $ | 46 | $ | 15 | $ | 59 | $ | 25 | ||||||||
Canadian | 2 | — | 2 | — | ||||||||||||
Total segment impairments | 48 | 15 | 61 | 25 | ||||||||||||
Unallocated impairments (b) | 16 | — | 16 | — | ||||||||||||
Total impairments | $ | 64 | $ | 15 | $ | 77 | $ | 25 | ||||||||
(a) Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Income. | ||||||||||||||||
(b) Represents impairments of undeveloped land. |
Data_Breach_Tables
Data Breach (Tables) | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Data Breach Balance Sheet Rollforward | ' | |||||||
Expenses Incurred and Amounts Accrued | ||||||||
Data Breach Balance Sheet Rollforward | Liabilities | Insurance receivable | ||||||
(millions) | ||||||||
Balance at February 1, 2014 | $ | 61 | $ | 44 | ||||
Expenses incurred/insurance receivable recorded (a) | 26 | 8 | ||||||
Payments made/received | (35 | ) | (13 | ) | ||||
Balance at May 3, 2014 | 52 | 39 | ||||||
Expenses incurred/insurance receivable recorded (a) | 148 | 38 | ||||||
Payments made/received | (19 | ) | (7 | ) | ||||
Balance at August 2, 2014 | $ | 182 | $ | 70 | ||||
(a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Aug. 02, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Contracts - Effect on Results of Operations | ' | ||||||||||||||||
Periodic payments, valuation adjustments and amortization of gains or losses on our derivative contracts had the following effect on our Consolidated Statements of Operations: | |||||||||||||||||
Derivative Contracts - Effect on Results of Operations | Three Months Ended | Six Months Ended | |||||||||||||||
(millions) | |||||||||||||||||
Type of Contract | Classification of (Income)/Expense | August 2, | August 3, | August 2, | August 3, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest rate swaps | Net interest expense | $ | (9 | ) | $ | (7 | ) | $ | (13 | ) | $ | (15 | ) |
Share_Repurchase_Share_Repurch
Share Repurchase Share Repurchase (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Share Repurchases | ' | |||||||||||||||
Share Repurchases | Three Months Ended | Six Months Ended | ||||||||||||||
(millions, except per share data) | August 2, 2014 (a) | August 3, 2013 (b) | August 2, 2014 (a) | August 3, 2013 (b) | ||||||||||||
Total number of shares purchased | 0.6 | 13.3 | 0.6 | 21.9 | ||||||||||||
Average price paid per share | $ | 55.36 | $ | 69.57 | $ | 55.36 | $ | 67.41 | ||||||||
Total investment | $ | 34 | $ | 927 | $ | 34 | $ | 1,474 | ||||||||
(a) All of the shares reacquired were delivered upon the noncash settlement of prepaid forward contracts. These contracts had an original cash investment of $34 million and an aggregate market value at their settlement dates of $34.7 million. These contracts are among the investment vehicles used to reduce our economic exposure related to our nonqualified deferred compensation plans. Note 9 provides the details of our positions in prepaid forward contracts. | ||||||||||||||||
(b) 0.1 million and 0.2 million, respectively, of the shares repurchased were delivered upon the noncash settlement of prepaid forward contracts. These contracts had an original cash investment of $7 million and $14 million, and an aggregate market value at their respective settlement dates of $8 million and $17 million. Note 9 provides the details of our positions in prepaid forward contracts. |
Pension_Postretirement_Health_1
Pension, Postretirement Health Care and Other Benefits (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Net Pension and Postretirement Health Care Benefits Expense | ' | |||||||||||||||||||||||||||||||
Net Pension and Postretirement | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||||||||||||||||||
Health Care Benefits Expense | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
(millions) | Aug 2, | Aug 3, | Aug 2, | Aug 3, | Aug 2, | Aug 3, | Aug 2, | Aug 3, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Service cost | $ | 28 | $ | 29 | $ | 56 | $ | 59 | $ | 1 | $ | 1 | $ | 2 | $ | 3 | ||||||||||||||||
Interest cost | 37 | 34 | 75 | 69 | — | 1 | 1 | 1 | ||||||||||||||||||||||||
Expected return on assets | (59 | ) | (58 | ) | (117 | ) | (117 | ) | — | — | — | — | ||||||||||||||||||||
Amortization of losses | 17 | 25 | 33 | 50 | 2 | 2 | 3 | 3 | ||||||||||||||||||||||||
Amortization of prior service cost | (3 | ) | (2 | ) | (6 | ) | (5 | ) | (4 | ) | (4 | ) | (8 | ) | (8 | ) | ||||||||||||||||
Total | $ | 20 | $ | 28 | $ | 41 | $ | 56 | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (1 | ) | |||||||||||||
Prepaid Forward Contracts on Target Common Stock | ' | |||||||||||||||||||||||||||||||
Prepaid Forward Contracts on Target Common Stock | August 2, | February 1, | August 3, | |||||||||||||||||||||||||||||
(millions, except per share data) | 2014 | 2014 | 2013 | |||||||||||||||||||||||||||||
Number of Shares | 0.7 | 1.3 | 1 | |||||||||||||||||||||||||||||
Contractual Price Paid per Share | $ | 42.88 | $ | 48.81 | $ | 45.01 | ||||||||||||||||||||||||||
Fair Value | $ | 40 | $ | 73 | $ | 73 | ||||||||||||||||||||||||||
Total Cash Investment | $ | 29 | $ | 63 | $ | 46 | ||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Summary of the changes in accumulated other comprehensive income (AOCI) by component | ' | |||||||||||||||
(millions) | Cash Flow | Currency | Pension and | Total | ||||||||||||
Hedges | Translation | Other | ||||||||||||||
Adjustment | Benefits | |||||||||||||||
February 2, 2013 | $ | (29 | ) | $ | (15 | ) | $ | (532 | ) | $ | (576 | ) | ||||
Other comprehensive income before reclassifications | — | (30 | ) | 28 | (2 | ) | ||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 12 | (b) | 13 | ||||||||||
4-May-13 | $ | (28 | ) | $ | (45 | ) | $ | (492 | ) | $ | (565 | ) | ||||
Other comprehensive income before reclassifications | — | (101 | ) | — | (101 | ) | ||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 12 | (b) | 13 | ||||||||||
3-Aug-13 | $ | (27 | ) | $ | (146 | ) | $ | (480 | ) | $ | (653 | ) | ||||
February 1, 2014 | $ | (25 | ) | $ | (444 | ) | $ | (422 | ) | $ | (891 | ) | ||||
Other comprehensive income before reclassifications | — | 61 | — | 61 | ||||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 7 | (b) | 8 | ||||||||||
3-May-14 | $ | (24 | ) | $ | (383 | ) | $ | (415 | ) | $ | (822 | ) | ||||
Other comprehensive income before reclassifications | — | 22 | — | 22 | ||||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 7 | (b) | 8 | ||||||||||
2-Aug-14 | $ | (23 | ) | $ | (361 | ) | $ | (408 | ) | $ | (792 | ) | ||||
(a) Represents gains and losses on cash flow hedges, net of $1 million of taxes, which is recorded in net interest expense on the Consolidated Statements of Operations. | ||||||||||||||||
(b) Represents amortization of pension and other benefit liabilities, net of $4 million of taxes for the three months ended May 3, 2014 and August 2, 2014, respectively, and $8 million for the three months ended May 4, 2013 and August 3, 2013. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Business Segment Results and Total Assets by Segment | ' | |||||||||||||||||||||||
Business Segment Results | Three Months Ended August 2, 2014 | Three Months Ended August 3, 2013 | ||||||||||||||||||||||
(millions) | U.S. | Canadian | Total | U.S. | Canadian | Total | ||||||||||||||||||
Sales | $ | 16,957 | $ | 449 | $ | 17,406 | $ | 16,841 | $ | 275 | $ | 17,117 | ||||||||||||
Cost of sales | 11,798 | 367 | 12,165 | 11,556 | 188 | 11,745 | ||||||||||||||||||
Gross margin | 5,159 | 82 | 5,241 | 5,285 | 87 | 5,372 | ||||||||||||||||||
Selling, general and administrative expenses (a)(e) | 3,462 | 216 | 3,678 | 3,462 | 207 | 3,669 | ||||||||||||||||||
Depreciation and amortization | 537 | 70 | 606 | 493 | 49 | 542 | ||||||||||||||||||
Segment profit | $ | 1,160 | $ | (204 | ) | $ | 957 | $ | 1,330 | $ | (169 | ) | $ | 1,161 | ||||||||||
Data Breach related costs, net of insurance receivable (c)(e) | (111 | ) | — | |||||||||||||||||||||
Reduction of beneficial interest asset (a)(e) | (11 | ) | (29 | ) | ||||||||||||||||||||
Undeveloped land impairments (e) | (16 | ) | — | |||||||||||||||||||||
Earnings before interest expense and income taxes | 819 | 1,132 | ||||||||||||||||||||||
Net interest expense | 453 | 171 | ||||||||||||||||||||||
Earnings before income taxes | $ | 366 | $ | 961 | ||||||||||||||||||||
Business Segment Results | Six Months Ended August 2, 2014 | Six Months Ended August 3, 2013 | ||||||||||||||||||||||
(millions) | U.S. | Canadian | Total | U.S. | Canadian | Total | ||||||||||||||||||
Sales | $ | 33,614 | $ | 842 | $ | 34,456 | $ | 33,462 | $ | 361 | $ | 33,823 | ||||||||||||
Cost of sales | 23,546 | 686 | 24,232 | 23,067 | 241 | 23,308 | ||||||||||||||||||
Gross margin | 10,068 | 156 | 10,224 | 10,395 | 120 | 10,515 | ||||||||||||||||||
Selling, general and administrative expenses (a)(e) | 6,788 | 434 | 7,222 | 6,842 | 400 | 7,242 | ||||||||||||||||||
Depreciation and amortization | 1,049 | 137 | 1,186 | 984 | 94 | 1,079 | ||||||||||||||||||
Segment profit | $ | 2,231 | $ | (415 | ) | $ | 1,816 | $ | 2,569 | $ | (374 | ) | $ | 2,194 | ||||||||||
Data Breach related costs, net of insurance receivable (c)(e) | (129 | ) | — | |||||||||||||||||||||
Reduction of beneficial interest asset (a)(e) | (29 | ) | (45 | ) | ||||||||||||||||||||
Undeveloped land impairments (e) | (16 | ) | — | |||||||||||||||||||||
Card brand conversion costs (d)(e) | (13 | ) | — | |||||||||||||||||||||
Gain on receivables transaction (b) | — | 391 | ||||||||||||||||||||||
Earnings before interest expense and income taxes | 1,629 | 2,540 | ||||||||||||||||||||||
Net interest expense | 622 | 801 | ||||||||||||||||||||||
Earnings before income taxes | $ | 1,007 | $ | 1,739 | ||||||||||||||||||||
Note: The sum of the segment amounts may not equal the total amounts due to rounding. | ||||||||||||||||||||||||
(a) Our U.S. Segment includes all TD profit-sharing amounts in segment EBIT; however, under GAAP, some amounts received from TD reduce the beneficial interest asset and are not recorded in consolidated earnings. | ||||||||||||||||||||||||
(b) Refer to Note 3 for more information on our credit card receivables transaction. | ||||||||||||||||||||||||
(c) Refer to Note 6 for more information on Data Breach related costs. | ||||||||||||||||||||||||
(d) Expense related to converting co-branded card program to MasterCard. | ||||||||||||||||||||||||
(e) The sum of segment SG&A expenses, reduction of beneficial interest asset, Data Breach related costs, undeveloped land impairments and card brand conversion costs equal consolidated SG&A expenses. | ||||||||||||||||||||||||
Total Assets by Segment | August 2, | February 1, | August 3, | |||||||||||||||||||||
(millions) | 2014 | 2014 | 2013 | |||||||||||||||||||||
U.S. | $ | 37,889 | $ | 38,128 | $ | 37,810 | ||||||||||||||||||
Canadian | 6,398 | 6,254 | 6,172 | |||||||||||||||||||||
Total segment assets | 44,287 | 44,382 | 43,982 | |||||||||||||||||||||
Unallocated assets (a) | 168 | 171 | 180 | |||||||||||||||||||||
Total assets | $ | 44,455 | $ | 44,553 | $ | 44,162 | ||||||||||||||||||
(a) Represents the beneficial interest asset and insurance receivable related to the Data Breach of $98 million and $70 million, respectively, at August 2, 2014, and $127 million and $44 million, respectively, at February 1, 2014. Represents the beneficial interest asset at August 3, 2013. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Other current assets | $1,833 | $1,944 | $2,112 | |||
Other noncurrent assets | 1,706 | 1,354 | 1,602 | |||
Other noncurrent liabilities | 1,517 | 1,540 | 1,490 | |||
Effect of 1% change in forecasted credit EBIT yield on estimated fair value | 14 | 0 | 0 | |||
Effect of 1% change in forecasted discount rate on estimated fair value | 3 | 0 | 0 | |||
Company-owned life insurance investments | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Company-owned life insurance investments | 806 | 787 | 790 | |||
Level 1 | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Total | 43 | 322 | 76 | |||
Level 1 | Short-term investments | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Cash and cash equivalents | 3 | 249 | 3 | |||
Level 1 | Prepaid forward contracts | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Other current assets | 40 | 73 | 73 | |||
Level 2 | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Total | 365 | 371 | 368 | |||
Total | 31 | 45 | 39 | |||
Level 2 | Company-owned life insurance investments | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Other noncurrent assets | 314 | [1] | 297 | [1] | 305 | [1] |
Level 2 | Interest rate swaps | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Other current assets | 0 | [2] | 0 | [2] | 1 | [2] |
Other noncurrent assets | 51 | [2] | 74 | [2] | 62 | [2] |
Other noncurrent liabilities | 31 | [2] | 45 | [2] | 39 | [2] |
Level 3 | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Total | 98 | 180 | 127 | |||
Level 3 | Beneficial interest asset | Fair value measured on recurring basis | ' | ' | ' | |||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Other current assets | 56 | [3] | 91 | [3] | 71 | [3] |
Other noncurrent assets | $41 | [3] | $89 | [3] | $56 | [3] |
[1] | Company-owned life insurance investments consist of equity index funds and fixed income assets. Amounts are presented net of nonrecourse loans that are secured by some of these policies. These loan amounts totaled $806 million at August 2, 2014, $790 million at February 1, 2014 and $787 million at August 3, 2013. | |||||
[2] | See Note 7 for additional information on interest rate swaps. | |||||
[3] | Note 3 includes a rollforward of the Level 3 beneficial interest asset. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 03, 2013 | |||
In Millions, unless otherwise specified | ||||||
Carrying amount | ' | ' | ' | |||
Financial liabilities | ' | ' | ' | |||
Total debt | $12,135 | [1],[2] | $11,758 | [1],[2] | $12,484 | [1],[2] |
Fair Value | ' | ' | ' | |||
Financial liabilities | ' | ' | ' | |||
Total debt | $13,553 | [1],[2] | $13,184 | [1],[2] | $14,018 | [1],[2] |
[1] | The carrying amount and estimated fair value of debt exclude unamortized swap valuation adjustments and capital lease obligations. | |||||
[2] | The carrying amounts of accounts payable and certain accrued and other current liabilities approximate fair value due to their short-term nature. |
Credit_Card_Receivables_Transa2
Credit Card Receivables Transaction (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | |||||||
Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | |||||
Nonrecourse | Credit card receivables | |||||||||
Accounts, Notes, Loans and Financing Receivable | ' | ' | ' | ' | ' | ' | ||||
Gain on receivables transaction | $0 | $0 | $0 | [1] | $391,000,000 | [1] | ' | $391,000,000 | ||
Consideration from sale of consumer credit card portfolio | ' | ' | ' | ' | ' | 5,700,000,000 | ||||
Consideration in form of beneficial interest asset | ' | ' | ' | ' | ' | 225,000,000 | ||||
Repayment of 2006/2007 Series Variable Funding Certificate at par | ' | ' | ' | ' | 1,500,000,000 | ' | ||||
Net cash proceeds from sale of consumer credit card portfolio | ' | ' | ' | ' | ' | 4,200,000,000 | ||||
Profit-sharing income recognized from credit card portfolio sale transaction | 167,000,000 | 183,000,000 | 334,000,000 | 288,000,000 | [2] | ' | ' | |||
Reduction in the beneficial interest asset related to the profit sharing agreement | -11,000,000 | [3],[4],[5] | -29,000,000 | [3],[4],[5] | -29,000,000 | [3],[4],[6] | -45,000,000 | [2],[3],[4],[6] | ' | ' |
Profit-sharing income recognized, net of offsetting, with reduction in beneficial interest asset | 156,000,000 | 154,000,000 | 305,000,000 | 243,000,000 | [2] | ' | ' | |||
Decrease in beneficial interest asset related to profit-sharing payments related to sold receivables | 19,000,000 | 31,000,000 | 39,000,000 | 45,000,000 | ' | ' | ||||
Net revaluation adjustment in the beneficial interest asset | 8,000,000 | 2,000,000 | 10,000,000 | 0 | ' | ' | ||||
Beneficial interest asset | $98,000,000 | $180,000,000 | $98,000,000 | $180,000,000 | ' | ' | ||||
[1] | Refer to Note 3 for more information on our credit card receivables transaction. | |||||||||
[2] | The U.S. Segment also earned credit card revenue prior to the close of the transaction. | |||||||||
[3] | The sum of segment SG&A expenses, reduction of beneficial interest asset, Data Breach related costs, undeveloped land impairments and card brand conversion costs equal consolidated SG&A expenses. | |||||||||
[4] | On a consolidated basis, profit-sharing income is offset by reductions of the beneficial interest asset. | |||||||||
[5] | Our U.S. Segment includes all TD profit-sharing amounts in segment EBIT; however, under GAAP, some amounts received from TD reduce the beneficial interest asset and are not recorded in consolidated earnings. | |||||||||
[6] | Represents the beneficial interest asset and insurance receivable related to the Data Breach of $98 million and $70 million, respectively, at August 2, 2014, and $127 million and $44 million, respectively, at February 1, 2014. Represents the beneficial interest asset at August 3, 2013. |
Notes_Payable_and_LongTerm_Deb2
Notes Payable and Long-Term Debt (Details) (USD $) | 1 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Aug. 02, 2014 | Aug. 03, 2013 | Mar. 31, 2013 | 4-May-13 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Secured | Unsecured | Unsecured | Commercial paper | Commercial paper | Commercial paper | Commercial paper | Unsecured Debt, Maturing June 2019 | Unsecured Debt, Maturing July 2024 | Debt Repurchase 1 | Debt Repurchase 2 | ||||
Unsecured | Unsecured | |||||||||||||
Debt Instrument Line Items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum daily amount outstanding during the period | ' | ' | ' | ' | ' | ' | $500,000,000 | $920,000,000 | $590,000,000 | $1,465,000,000 | ' | ' | ' | ' |
Average daily amount outstanding during the period | ' | ' | ' | ' | ' | ' | 148,000,000 | 301,000,000 | 214,000,000 | 394,000,000 | ' | ' | ' | ' |
Amount outstanding at period-end | ' | ' | ' | ' | ' | ' | 189,000,000 | 807,000,000 | 189,000,000 | 807,000,000 | ' | ' | ' | ' |
Weighted average interest rate | ' | ' | ' | ' | ' | ' | 0.11% | 0.19% | 0.10% | 0.14% | ' | ' | ' | ' |
Face amount of unsecured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,000,000,000 | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.30% | 3.50% | ' | ' |
Repurchase of additional debt | 725,000,000 | ' | ' | ' | 970,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,000,000,000 |
Loss on repurchase of debt instrument | 285,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt amount repaid | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds from the sale to repurchase additional debt | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on early retirement | ' | $285,000,000 | $445,000,000 | ' | ' | $445,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ||||
Tangible asset impairment charges | $64 | [1] | $15 | [1] | $77 | [1] | $25 | [1] |
Business segments | ' | ' | ' | ' | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ||||
Tangible asset impairment charges | 48 | [1] | 15 | [1] | 61 | [1] | 25 | [1] |
Business segments | US Segment | ' | ' | ' | ' | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ||||
Tangible asset impairment charges | 46 | [1] | 15 | [1] | 59 | [1] | 25 | [1] |
Business segments | Canadian Segment | ' | ' | ' | ' | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ||||
Tangible asset impairment charges | 2 | [1] | 0 | [1] | 2 | [1] | 0 | [1] |
Segment reconciling items | ' | ' | ' | ' | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ||||
Tangible asset impairment charges | $16 | [1],[2] | $0 | [1],[2] | $16 | [1],[2] | $0 | [1],[2] |
[1] | Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Income. | |||||||
[2] | Represents impairments of undeveloped land. |
Data_Breach_Details
Data Breach (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Aug. 02, 2014 | Aug. 02, 2014 | Aug. 02, 2014 | Aug. 02, 2014 | ||||||
Data breach | Data breach | Data breach | Data breach | Data breach | Data breach | Data breach | |||||||||||
account | United States | Canada | |||||||||||||||
action | action | ||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Data breach, number of credit and debit card accounts stolen | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ||||||
Data breach, number of individuals whose personal information was stolen | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ||||||
Data breach, number of actions filed seeking damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 1 | ||||||
Loss Contingency Accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Data breach, liability, beginning balance | ' | ' | ' | ' | $52 | $61 | ' | $61 | ' | ' | ' | ||||||
Data breach, expense incurred | 111 | [1],[2] | 0 | [1],[2] | 129 | [1],[3] | 0 | [1],[3] | 148 | [4] | 26 | [4] | ' | 175 | 236 | ' | ' |
Data breach, payments made | ' | ' | ' | ' | -19 | -35 | ' | ' | ' | ' | ' | ||||||
Data breach, liability, ending balance | ' | ' | ' | ' | 182 | 52 | 61 | 182 | 182 | ' | ' | ||||||
insurance Settlements Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Data breach, insurance settlements receivable, beginning balance | ' | ' | 44 | ' | 39 | 44 | ' | 44 | ' | ' | ' | ||||||
Data breach, insurance receivable recorded | ' | ' | ' | ' | 38 | [4] | 8 | [4] | ' | 46 | ' | ' | ' | ||||
Data breach, cash received | ' | ' | ' | ' | -7 | -13 | ' | -20 | -90 | ' | ' | ||||||
Data breach, insurance settlements receivable, ending balance | 70 | ' | 70 | ' | 70 | 39 | 44 | 70 | 70 | ' | ' | ||||||
Data breach, net expense | ' | ' | ' | ' | 111 | ' | ' | 129 | 146 | ' | ' | ||||||
Data breach, network security insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ||||||
Data breach, network security insurance coverage, deductible | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ||||||
Data breach, network security insurance coverage, sublimit | ' | ' | ' | ' | ' | ' | ' | ' | $50 | ' | ' | ||||||
[1] | The sum of segment SG&A expenses, reduction of beneficial interest asset, Data Breach related costs, undeveloped land impairments and card brand conversion costs equal consolidated SG&A expenses. | ||||||||||||||||
[2] | Our U.S. Segment includes all TD profit-sharing amounts in segment EBIT; however, under GAAP, some amounts received from TD reduce the beneficial interest asset and are not recorded in consolidated earnings. | ||||||||||||||||
[3] | Refer to Note 6 for more information on Data Breach related costs. | ||||||||||||||||
[4] | Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | |
instrument | instrument | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | |||
swap | ||||||||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of derivative instruments designated as accounting hedge | 1 | ' | 1 | ' | ' | ' | ' | ' | 2 | ' |
Derivative, notional amount | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | $250,000,000 |
Amount of ineffectiveness recognized | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Derivative Contracts - Effect on Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Classification of (income)/expense, net interest expense | ' | ' | ' | ' | -9,000,000 | -7,000,000 | -13,000,000 | -15,000,000 | ' | ' |
Unamortized hedged debt valuation gains from terminated and de-designated interest rate swaps | $63,000,000 | $43,000,000 | $63,000,000 | $52,000,000 | ' | ' | ' | ' | ' | ' |
Share_Repurchase_Details
Share Repurchase (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Jan. 28, 2012 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | ||||||
Repurchase of share repurchase program 2012 | Cash investment | Cash investment | Cash investment | Cash investment | Prepaid forward contracts market value | Prepaid forward contracts market value | Prepaid forward contracts market value | Prepaid forward contracts market value | |||||||||||
Share Repurchase Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Total number of shares purchased | 0.6 | [1] | 13.3 | [2] | 0.6 | [1] | 21.9 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repurchase of stock, average price per share (in dollars per share) | $55.36 | [1] | $69.57 | [2] | $55.36 | [1] | $67.41 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total investment | $34,000,000 | [1] | $927,000,000 | [2] | $34,000,000 | [1] | $1,474,000,000 | [2] | ' | $34,000,000 | $7,000,000 | [1] | $34,000,000 | $14,000,000 | [1] | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | ' | ' | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Total number of shares purchased | ' | 0.1 | ' | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Aggregate market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,700,000 | $8,000,000 | $34,700,000 | $17,000,000 | ||||||
[1] | All of the shares reacquired were delivered upon the noncash settlement of prepaid forward contracts. These contracts had an original cash investment of $34 million and an aggregate market value at their settlement dates of $34.7 million. These contracts are among the investment vehicles used to reduce our economic exposure related to our nonqualified deferred compensation plans. Note 9 provides the details of our positions in prepaid forward contracts. | ||||||||||||||||||
[2] | 0.1 million and 0.2 million, respectively, of the shares repurchased were delivered upon the noncash settlement of prepaid forward contracts. These contracts had an original cash investment of $7 million and $14 million, and an aggregate market value at their respective settlement dates of $8 million and $17 million. Note 9 provides the details of our positions in prepaid forward contracts. |
Pension_Postretirement_Health_2
Pension, Postretirement Health Care and Other Benefits (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Pension Benefits | ' | ' | ' | ' |
Net Pension and Postretirement Health Care Benefits Expense | ' | ' | ' | ' |
Service cost | $28 | $29 | $56 | $59 |
Interest cost | 37 | 34 | 75 | 69 |
Expected return on assets | -59 | -58 | -117 | -117 |
Amortization of losses | 17 | 25 | 33 | 50 |
Amortization of prior service cost | -3 | -2 | -6 | -5 |
Total | 20 | 28 | 41 | 56 |
Postretirement Health Care Benefits | ' | ' | ' | ' |
Net Pension and Postretirement Health Care Benefits Expense | ' | ' | ' | ' |
Service cost | 1 | 1 | 2 | 3 |
Interest cost | 0 | 1 | 1 | 1 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of losses | 2 | 2 | 3 | 3 |
Amortization of prior service cost | -4 | -4 | -8 | -8 |
Total | ($1) | $0 | ($2) | ($1) |
Pension_Postretirement_Health_3
Pension, Postretirement Health Care and Other Benefits (Details 2) (Prepaid forward contracts, USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 |
Prepaid forward contracts | ' | ' | ' | ' | ' |
Prepaid Forward Contracts on Target Common Stock | ' | ' | ' | ' | ' |
Change in fair value for contracts indexed to Target common stock, recognized in earnings, pretax | ($5,000,000) | $1,000,000 | $2,000,000 | $12,000,000 | ' |
Number of Shares | 0.7 | 1 | 0.7 | 1 | 1.3 |
Contractual Price Paid per Share | ' | ' | 42.88 | 45.01 | 48.81 |
Fair Value | 40,000,000 | 73,000,000 | 40,000,000 | 73,000,000 | 73,000,000 |
Total Cash Investment | 29,000,000 | 46,000,000 | 29,000,000 | 46,000,000 | 63,000,000 |
Payments for derivative instrument, investing activities | ' | ' | $0 | $6,000,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||||
In Millions, unless otherwise specified | Aug. 02, 2014 | 3-May-14 | Aug. 03, 2013 | 4-May-13 | Aug. 02, 2014 | Aug. 03, 2013 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||
Balance at beginning of period | ($822) | ($891) | ($565) | ($576) | ($891) | ($576) | ||||
Other comprehensive income before reclassifications | 22 | 61 | -101 | -2 | ' | ' | ||||
Amounts reclassified from AOCI | 8 | 8 | 13 | 13 | ' | ' | ||||
Balance at end of period | -792 | -822 | -653 | -565 | -792 | -653 | ||||
Income tax expense (benefit) | 132 | ' | 350 | ' | 354 | 629 | ||||
Cash Flow Hedges | ' | ' | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||
Balance at beginning of period | -24 | -25 | -28 | -29 | -25 | -29 | ||||
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 | ' | ' | ||||
Amounts reclassified from AOCI | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] | ' | ' |
Balance at end of period | -23 | -24 | -27 | -28 | -23 | -27 | ||||
Cash Flow Hedges | Amount reclassified from other comprehensive income | ' | ' | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||
Income tax expense (benefit) | 1 | 1 | 1 | 1 | ' | ' | ||||
Currency Translation Adjustment | ' | ' | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||
Balance at beginning of period | -383 | -444 | -45 | -15 | -444 | -15 | ||||
Other comprehensive income before reclassifications | 22 | 61 | -101 | -30 | ' | ' | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ' | ' | ||||
Balance at end of period | -361 | -383 | -146 | -45 | -361 | -146 | ||||
Pension and Other Benefit | ' | ' | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||
Balance at beginning of period | -415 | -422 | -492 | -532 | -422 | -532 | ||||
Other comprehensive income before reclassifications | 0 | 0 | 0 | 28 | ' | ' | ||||
Amounts reclassified from AOCI | 7 | [2] | 7 | [2] | 12 | [2] | 12 | [2] | ' | ' |
Balance at end of period | -408 | -415 | -480 | -492 | -408 | -480 | ||||
Pension and Other Benefit | Amount reclassified from other comprehensive income | ' | ' | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ||||
Income tax expense (benefit) | $4 | $4 | $8 | $8 | ' | ' | ||||
[1] | Represents gains and losses on cash flow hedges, net of $1 million of taxes, which is recorded in net interest expense on the Consolidated Statements of Operations. | |||||||||
[2] | Represents amortization of pension and other benefit liabilities, net of $4 million of taxes for the three months ended May 3, 2014 and August 2, 2014, respectively, and $8 million for the three months ended May 4, 2013 and August 3, 2013. |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | ||||
segment | ||||||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ||||
Number of business segments | ' | ' | 2 | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Sales | $17,406 | $17,117 | $34,456 | $33,823 | ||||
Cost of sales | 12,165 | 11,745 | 24,232 | 23,308 | ||||
Gross margin | 5,241 | 5,372 | 10,224 | 10,515 | ||||
Selling, general and administrative expenses | 3,678 | [1],[2] | 3,669 | [1],[2] | 7,222 | [1],[3] | 7,242 | [1],[3] |
Depreciation and amortization | 606 | 542 | 1,186 | 1,079 | ||||
Segment profit | 957 | 1,161 | 1,816 | 2,194 | ||||
Reduction of beneficial interest asset | -11 | [1],[2],[4] | -29 | [1],[2],[4] | -29 | [1],[3],[4] | -45 | [1],[3],[4],[5] |
Tangible asset impairment charges | -64 | [6] | -15 | [6] | -77 | [6] | -25 | [6] |
Gain on receivables transaction | 0 | 0 | 0 | [7] | -391 | [7] | ||
Data Breach, related costs, net of insurance receivable | -111 | [1],[2] | 0 | [1],[2] | -129 | [1],[8] | 0 | [1],[8] |
Card brand conversion costs | ' | ' | -13 | [1],[9] | 0 | [1],[9] | ||
Earnings before interest expense and income taxes | 819 | 1,132 | 1,629 | 2,540 | ||||
Net interest expense | 453 | 171 | 622 | 801 | ||||
Earnings before income taxes | 366 | 961 | 1,007 | 1,739 | ||||
U.S. | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Sales | 16,957 | 16,841 | 33,614 | 33,462 | ||||
Cost of sales | 11,798 | 11,556 | 23,546 | 23,067 | ||||
Gross margin | 5,159 | 5,285 | 10,068 | 10,395 | ||||
Selling, general and administrative expenses | 3,462 | [1],[2] | 3,462 | [1],[2] | 6,788 | [1],[3] | 6,842 | [1],[3] |
Depreciation and amortization | 537 | 493 | 1,049 | 984 | ||||
Segment profit | 1,160 | 1,330 | 2,231 | 2,569 | ||||
Canadian | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Sales | 449 | 275 | 842 | 361 | ||||
Cost of sales | 367 | 188 | 686 | 241 | ||||
Gross margin | 82 | 87 | 156 | 120 | ||||
Selling, general and administrative expenses | 216 | [1],[2] | 207 | [1],[2] | 434 | [1],[3] | 400 | [1],[3] |
Depreciation and amortization | 70 | 49 | 137 | 94 | ||||
Segment profit | -204 | -169 | -415 | -374 | ||||
Business segments | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Tangible asset impairment charges | -48 | [6] | -15 | [6] | -61 | [6] | -25 | [6] |
Undeveloped Land | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Tangible asset impairment charges | ($16) | [1] | $0 | [1] | ($16) | [1] | $0 | [1] |
[1] | The sum of segment SG&A expenses, reduction of beneficial interest asset, Data Breach related costs, undeveloped land impairments and card brand conversion costs equal consolidated SG&A expenses. | |||||||
[2] | Our U.S. Segment includes all TD profit-sharing amounts in segment EBIT; however, under GAAP, some amounts received from TD reduce the beneficial interest asset and are not recorded in consolidated earnings. | |||||||
[3] | Represents the beneficial interest asset and insurance receivable related to the Data Breach of $98 million and $70 million, respectively, at August 2, 2014, and $127 million and $44 million, respectively, at February 1, 2014. Represents the beneficial interest asset at August 3, 2013. | |||||||
[4] | On a consolidated basis, profit-sharing income is offset by reductions of the beneficial interest asset. | |||||||
[5] | The U.S. Segment also earned credit card revenue prior to the close of the transaction. | |||||||
[6] | Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Income. | |||||||
[7] | Refer to Note 3 for more information on our credit card receivables transaction. | |||||||
[8] | Refer to Note 6 for more information on Data Breach related costs. | |||||||
[9] | Expense related to converting co-branded card program to MasterCard. |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 03, 2013 | |||
In Millions, unless otherwise specified | ||||||
Segment Reporting Information | ' | ' | ' | |||
Total assets | $44,455 | $44,553 | $44,162 | |||
Beneficial interest asset | 98 | 127 | ' | |||
Insurance settlements receivable, current | 70 | 44 | ' | |||
U.S. | ' | ' | ' | |||
Segment Reporting Information | ' | ' | ' | |||
Total assets | 37,889 | 38,128 | 37,810 | |||
Canadian | ' | ' | ' | |||
Segment Reporting Information | ' | ' | ' | |||
Total assets | 6,398 | 6,254 | 6,172 | |||
Total segment assets | ' | ' | ' | |||
Segment Reporting Information | ' | ' | ' | |||
Total assets | 44,287 | 44,382 | 43,982 | |||
Unallocated assets | ' | ' | ' | |||
Segment Reporting Information | ' | ' | ' | |||
Total assets | $168 | [1] | $171 | [1] | $180 | [1] |
[1] | Represents the beneficial interest asset and insurance receivable related to the Data Breach of $98 million and $70 million, respectively, at August 2, 2014, and $127 million and $44 million, respectively, at February 1, 2014. Represents the beneficial interest asset at August 3, 2013. |