Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
2-May-15 | 22-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | TARGET CORP | |
Entity Central Index Key | 27419 | |
Document Type | 10-Q | |
Document Period End Date | 2-May-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 638,491,711 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
Income Statement [Abstract] | ||
Sales | $17,119 | $16,657 |
Cost of sales | 11,911 | 11,748 |
Selling, general and administrative expenses | 3,514 | 3,376 |
Depreciation and amortization | 540 | 511 |
Earnings from continuing operations before interest expense and income taxes | 1,154 | 1,022 |
Net interest expense | 155 | 152 |
Earnings from continuing operations before income taxes | 999 | 870 |
Provision for income taxes | 348 | 299 |
Net earnings from continuing operations | 651 | 571 |
Discontinued operations, net of tax | -16 | -153 |
Net earnings | $635 | $418 |
Basic earnings per share | ||
Continuing operations (in dollars per share) | $1.02 | $0.90 |
Discontinued operations (in dollars per share) | ($0.03) | ($0.24) |
Net earnings per share (in dollars per share) | $0.99 | $0.66 |
Diluted earnings per share | ||
Continuing operations (in dollars per share) | $1.01 | $0.89 |
Discontinued operations (in dollars per share) | ($0.03) | ($0.24) |
Net earnings per share (in dollars per share) | $0.98 | $0.66 |
Weighted average common shares outstanding | ||
Basic (in shares) | 640.9 | 633.3 |
Dilutive impact of share-based awards (in shares) | 5.5 | 4.9 |
Diluted (in shares) | 646.4 | 638.2 |
Antidilutive shares (in shares) | 0 | 5.3 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $635 | $418 |
Other comprehensive income, net of tax | ||
Pension and other benefit liabilities, net of taxes of $71 and $4 | 109 | 7 |
Currency translation adjustment and cash flow hedges, net of taxes of $0 and $1 | 0 | 62 |
Other comprehensive income | 109 | 69 |
Comprehensive income | $744 | $487 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 |
Statement of Comprehensive Income [Abstract] | ||
Pension and other benefit liabilities, taxes | $71 | $4 |
Currency translation adjustment and cash flow hedges, taxes | $0 | $1 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (Unaudited) (USD $) | 2-May-15 | Jan. 31, 2015 | 3-May-14 |
In Millions, unless otherwise specified | |||
Assets | |||
Cash and cash equivalents, including short term investments of $2,073, $1,520 and $3 | $2,768 | $2,210 | $677 |
Inventory | 8,610 | 8,790 | 7,905 |
Assets of discontinued operations | 148 | 1,333 | 718 |
Other current assets | 1,672 | 1,754 | 1,723 |
Total current assets | 13,198 | 14,087 | 11,023 |
Property and equipment | |||
Land | 6,135 | 6,127 | 6,146 |
Buildings and improvements | 26,636 | 26,614 | 25,991 |
Fixtures and equipment | 5,011 | 5,346 | 4,909 |
Computer hardware and software | 2,395 | 2,553 | 2,138 |
Construction-in-progress | 576 | 424 | 906 |
Accumulated depreciation | -14,975 | -15,106 | -13,756 |
Property and equipment, net | 25,778 | 25,958 | 26,334 |
Noncurrent assets of discontinued operations | 458 | 442 | 5,605 |
Other noncurrent assets | 1,012 | 917 | 1,080 |
Total assets | 40,446 | 41,404 | 44,042 |
Liabilities and shareholders’ investment | |||
Accounts payable | 6,799 | 7,759 | 6,519 |
Accrued and other current liabilities | 3,673 | 3,783 | 3,626 |
Current portion of long-term debt and other borrowings | 112 | 91 | 1,466 |
Liabilities of discontinued operations | 64 | 103 | 429 |
Total current liabilities | 10,648 | 11,736 | 12,040 |
Long-term debt and other borrowings | 12,654 | 12,705 | 11,391 |
Deferred income taxes | 1,359 | 1,321 | 1,300 |
Noncurrent liabilities of discontinued operations | 207 | 193 | 1,321 |
Other noncurrent liabilities | 1,404 | 1,452 | 1,504 |
Total noncurrent liabilities | 15,624 | 15,671 | 15,516 |
Shareholders’ investment | |||
Common stock | 53 | 53 | 53 |
Additional paid-in capital | 5,170 | 4,899 | 4,512 |
Retained earnings | 9,441 | 9,644 | 12,743 |
Accumulated other comprehensive loss | |||
Pension and other benefit liabilities | -452 | -561 | -415 |
Currency translation adjustment and cash flow hedges | -38 | -38 | -407 |
Total shareholders’ investment | 14,174 | 13,997 | 16,486 |
Total liabilities and shareholders’ investment | $40,446 | $41,404 | $44,042 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Unaudited) (Parenthetical) (USD $) | 2-May-15 | Jan. 31, 2015 | 3-May-14 |
In Millions, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | |||
Cash and cash equivalents, short-term investments | $2,073 | $1,520 | $3 |
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 | 638,408,643 | 640,213,987 | 633,613,396 |
Common Stock, shares outstanding | 638,408,643 | 640,213,987 | 633,613,396 |
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 $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 | Jan. 31, 2015 | ||
Operating activities | |||||
Net earnings | $635 | $418 | ($1,636) | ||
Losses from discontinued operations, net of tax | -16 | -153 | |||
Net earnings from continuing operations | 651 | 571 | |||
Adjustments to reconcile net earnings to cash provided by operations: | |||||
Depreciation and amortization | 540 | 511 | |||
Share-based compensation expense | 26 | 20 | |||
Deferred income taxes | 18 | -37 | |||
Noncash (gains)/losses and other, net | -70 | -13 | |||
Changes in operating accounts: | |||||
Inventory | 180 | 372 | |||
Other assets | 138 | 127 | |||
Accounts payable and accrued liabilities | -766 | -736 | |||
Cash provided by operating activities—continuing operations | 717 | 815 | |||
Cash provided by/ (required for) operating activities—discontinued operations | 834 | -295 | |||
Cash provided by operations | 1,551 | 520 | |||
Investing activities | |||||
Expenditures for property and equipment | -352 | -471 | |||
Proceeds from disposal of property and equipment | 6 | 5 | |||
Other investments | 21 | 18 | |||
Cash required for investing activities—continuing operations | -325 | -448 | |||
Cash provided by/ (required for) investing activities—discontinued operations | 19 | -90 | |||
Cash required for investing activities | -306 | -538 | |||
Financing activities | |||||
Change in commercial paper, net | 0 | 306 | |||
Reductions of long-term debt | -14 | -31 | |||
Dividends paid | -333 | -272 | |||
Repurchase of stock | -477 | 0 | |||
Prepayment of accelerated share repurchase | -120 | 0 | |||
Stock option exercises and related tax benefit | 257 | 26 | |||
Cash (required for)/ provided by financing activities | -687 | 29 | |||
Effect of exchange rate changes on cash and cash equivalents | 0 | 9 | |||
Net increase in cash and cash equivalents | 558 | 20 | |||
Cash and cash equivalents at beginning of period | 2,210 | 695 | [1] | 695 | [1] |
Cash and cash equivalents at end of period | $2,768 | $715 | [2] | $2,210 | |
[1] | Includes cash of our discontinued operations of $25 million for the three months ended May 3, 2014. | ||||
[2] | Includes cash of our discontinued operations of $37 million for the three months ended May 3, 2014. |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents, discontinued operations | $37 | $25 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Investment (Unaudited) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | 2-May-15 | 3-May-14 | Jan. 31, 2015 |
Increase (Decrease) in Shareholders' Investment | |||
Balance | $13,997 | $16,231 | $16,231 |
Balance (in shares) | 640,213,987 | ||
Net earnings | 635 | 418 | -1,636 |
Other comprehensive income | 109 | 69 | 292 |
Dividends declared | -335 | -1,273 | |
Repurchase of stock | -483 | -46 | |
Stock to be received upon settlement of ASR | -20 | ||
Stock options and awards | 271 | 429 | |
Balance | 14,174 | 16,486 | 13,997 |
Balance (in shares) | 638,408,643 | 633,613,396 | 640,213,987 |
Common Stock | |||
Increase (Decrease) in Shareholders' Investment | |||
Balance | 53 | 53 | 53 |
Balance (in shares) | 640,200,000 | 632,900,000 | 632,900,000 |
Repurchase of stock (in shares) | -5,900,000 | -800,000 | |
Stock options and awards (in shares) | 4,100,000 | 8,100,000 | |
Balance | 53 | 53 | |
Balance (in shares) | 638,400,000 | 640,200,000 | |
Additional Paid-in Capital | |||
Increase (Decrease) in Shareholders' Investment | |||
Balance | 4,899 | 4,470 | 4,470 |
Stock options and awards | 271 | 429 | |
Balance | 5,170 | 4,899 | |
Retained Earnings | |||
Increase (Decrease) in Shareholders' Investment | |||
Balance | 9,644 | 12,599 | 12,599 |
Net earnings | 635 | -1,636 | |
Dividends declared | -335 | -1,273 | |
Repurchase of stock | -483 | -46 | |
Stock to be received upon settlement of ASR | -20 | ||
Balance | 9,441 | 9,644 | |
Accumulated Other Comprehensive Income/(Loss) | |||
Increase (Decrease) in Shareholders' Investment | |||
Balance | -599 | -891 | -891 |
Other comprehensive income | 109 | 292 | |
Balance | ($490) | ($599) |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Investment (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |
2-May-15 | 3-May-14 | Jan. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $0.52 | $0.43 | $1.99 |
Accounting_Policies
Accounting Policies | 3 Months Ended |
2-May-15 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies |
These financial statements should be read in conjunction with the financial statement disclosures in our 2014 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. Certain prior-year amounts have been reclassified to conform to the current year presentation. Unless otherwise noted, amounts presented within the Notes to Consolidated Financial Statements refer to our continuing operations. | |
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. |
Canada_Exit
Canada Exit | 3 Months Ended | |||||||||||
2-May-15 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Canada Exit | Canada Exit | |||||||||||
Background | ||||||||||||
On January 15, 2015, Target Canada Co. and certain other wholly owned subsidiaries of Target (collectively Canada Subsidiaries), comprising substantially all of our Canadian operations and our historical Canadian Segment, filed for protection (the Filing) under the Companies' Creditors Arrangement Act (CCAA) with the Ontario Superior Court of Justice in Toronto (the Court) and were deconsolidated. The Canada Subsidiaries are executing a liquidation process. As of May 2, 2015, all stores have been closed. | ||||||||||||
Loss on Discontinued Operations | Three Months Ended | |||||||||||
(millions) | ||||||||||||
May 2, | May 3, | |||||||||||
2015 | 2014 | |||||||||||
Sales | $ | — | $ | 393 | ||||||||
Cost of sales | — | 319 | ||||||||||
SG&A expenses | — | 218 | ||||||||||
Depreciation and amortization | — | 67 | ||||||||||
Interest expense | — | 19 | ||||||||||
Pretax loss from operations | — | (230 | ) | |||||||||
Pretax exit costs (a) | (34 | ) | — | |||||||||
Income taxes | 18 | 77 | ||||||||||
Loss on discontinued operations | $ | (16 | ) | $ | (153 | ) | ||||||
(a) The pretax exit costs primarily related to our ongoing support of the liquidation process, other professional fees, and a $4 million payment to the Canadian employee trust. | ||||||||||||
Recorded Assets and Liabilities | ||||||||||||
Assets and Liabilities of Discontinued Operations | ||||||||||||
(millions) | ||||||||||||
May 2, | January 31, | May 3, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Income tax benefit | $ | 264 | $ | 1,430 | Inventory | $ | 544 | |||||
Receivables from Canada Subsidiaries | 342 | 326 | Property and equipment, net | 5,025 | ||||||||
Receivables under the debtor-in-possession credit facility | — | 19 | Other | 754 | ||||||||
Total assets | $ | 606 | $ | 1,775 | Total assets | $ | 6,323 | |||||
Capital lease obligations | $ | 1,233 | ||||||||||
Accrued liabilities | $ | 271 | $ | 296 | Accounts payable and other liabilities | 517 | ||||||
Total liabilities | $ | 271 | $ | 296 | Total liabilities | $ | 1,750 | |||||
Accrued liabilities include estimated probable losses related to claims that may be asserted against us, primarily under guarantees of certain leases. The beneficiaries of those guarantees may seek damages or other related relief as a result of our exit from Canada. Our probable loss estimate is based on the expectation that claims will be asserted against us and negotiated settlements will be reached, and not on any determination that it is probable we would be found liable were these claims to be litigated. Our estimates involve significant judgment and are based on currently available information, an assessment of the validity of certain claims and estimated payments by the Canada Subsidiaries. We are not able to reasonably estimate a range of possible losses in excess of the year-end accrual because there are significant factual and legal issues to be resolved. We believe that it is reasonably possible that future changes to our estimates of loss and the ultimate amount paid on these claims could be material to our results of operations in future periods. Any such losses would be reported in discontinued operations. | ||||||||||||
DIP Financing | ||||||||||||
In conjunction with the Filing, the Court approved Target's agreement to provide a debtor-in-possession credit facility (the DIP facility) to the Canada Subsidiaries, which provides for borrowings under the facility up to $175 million. As of January 31, 2015, there was $19 million drawn and outstanding under the DIP facility, which was fully repaid in the first quarter of 2015. No amounts were drawn on the facility during the first quarter of 2015, and we do not expect any additional amounts to be drawn under the facility before it expires. | ||||||||||||
Income Taxes | ||||||||||||
During the fourth quarter of 2014, we recognized a tax benefit of $1,627 million in discontinued operations. The majority of this tax benefit has been received in the first quarter of 2015, and we expect to use substantially all of the remainder to reduce our 2015 estimated tax payments. |
Restructuring_Initiatives
Restructuring Initiatives | 3 Months Ended | |||||||||
2-May-15 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
Restructuring Initiatives | Restructuring Initiatives | |||||||||
In March 2015, we announced a headquarters workforce reduction intended to increase organizational effectiveness and provide cost savings that can be reinvested in our growth initiatives. As a result, we recorded $103 million of severance and other benefits-related charges within SG&A in the first quarter of 2015. The vast majority of these expenses will require cash expenditures by the end of the second quarter of 2015. These costs were not included in our segment results. | ||||||||||
First Quarter Restructuring Costs | 2015 | |||||||||
(millions) | ||||||||||
Severance | $ | 99 | ||||||||
Pension and other | 4 | |||||||||
Total | $ | 103 | ||||||||
Accruals for restructuring costs are included in other current liabilities as of May 2, 2015 as follows: | ||||||||||
Restructuring-Related Liabilities | Severance | Pension and Other | Total | |||||||
(millions) | ||||||||||
Restructuring liability as of January 31, 2015 | $ | — | $ | — | $ | — | ||||
Charges during period | 99 | 4 | 103 | |||||||
Paid or otherwise settled | (28 | ) | (4 | ) | (32 | ) | ||||
Restructuring liability as of May 2, 2015 | $ | 71 | $ | — | $ | 71 | ||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||
2-May-15 | |||||||||||||||||||||
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 | ||||||||||||||||||||
(millions) | Pricing Category | May 2, | January 31, | May 3, | |||||||||||||||||
2015 | 2015 | 2014 | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||
Short-term investments | Level 1 | $ | 2,073 | $ | 1,520 | $ | 3 | ||||||||||||||
Other current assets | |||||||||||||||||||||
Interest rate swaps(a) | Level 2 | — | — | 1 | |||||||||||||||||
Prepaid forward contracts | Level 1 | 35 | 38 | 80 | |||||||||||||||||
Beneficial interest asset | Level 3 | 35 | 43 | 62 | |||||||||||||||||
Other noncurrent assets | |||||||||||||||||||||
Interest rate swaps(a) | Level 2 | 46 | 65 | 56 | |||||||||||||||||
Company-owned life insurance investments(b) | Level 2 | 332 | 322 | 313 | |||||||||||||||||
Beneficial interest asset | Level 3 | 25 | 31 | 46 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Other noncurrent liabilities | |||||||||||||||||||||
Interest rate swaps(a) | Level 2 | 20 | 24 | 35 | |||||||||||||||||
(a) See Note 7 for additional information on interest rate swaps. | |||||||||||||||||||||
(b) 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 $781 million at May 2, 2015, $773 million at January 31, 2015 and $800 million at May 3, 2014. | |||||||||||||||||||||
Significant Financial Instruments not Measured at Fair Value (a) | May 2, 2015 | January 31, 2015 | May 3, 2014 | ||||||||||||||||||
(millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | Amount | Value | ||||||||||||||||
Debt (b) | $ | 11,947 | $ | 13,542 | $ | 11,946 | $ | 14,089 | $ | 12,064 | $ | 13,721 | |||||||||
(a) The carrying amounts of certain other current assets, 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. |
Notes_Payable_and_LongTerm_Deb
Notes Payable and Long-Term Debt | 3 Months Ended | |||||||
2-May-15 | ||||||||
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 | |||||||
(dollars in millions) | May 2, | May 3, | ||||||
2015 | 2014 | |||||||
Maximum daily amount outstanding during the period | $ | — | $ | 590 | ||||
Average daily amount outstanding during the period | — | 279 | ||||||
Amount outstanding at period-end | — | 386 | ||||||
Weighted average interest rate | — | % | 0.1 | % | ||||
Data_Breach
Data Breach | 3 Months Ended | |||||||
2-May-15 | ||||||||
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, 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. | ||||||||
Data Breach Related Accruals | ||||||||
Each of the four major payment card networks has made a written claim against us regarding the Data Breach, either directly or through our acquiring banks. During the first quarter of 2015, we entered into a settlement agreement with MasterCard which was conditioned on the acceptance by issuers of at least 90 percent of the eligible MasterCard accounts by May 20, 2015. The issuers of the minimum percentage of eligible MasterCard accounts did not accept their alternative recovery offers by the deadline. We expect to dispute the claims that have been or may be made against us by the payment card networks regarding the Data Breach, including claims by MasterCard, and we think it is probable that our disputes would lead to settlement negotiations. 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. | ||||||||
In addition, more than 100 actions were filed in courts in many states on behalf of guests, payment card issuing banks, and shareholders, seeking damages or other related relief allegedly arising out of the Data Breach. The federal court actions (the “MDL Actions”) have been consolidated in the U.S. District Court for the District of Minnesota (“MDL Court”) pursuant to the rules governing multidistrict litigation and one remaining state court action has been stayed. In March 2015, Target entered into a Settlement Agreement that, upon approval of the MDL Court, will resolve and dismiss the claims asserted in the MDL Actions on behalf of a class of guests whose information was compromised in the Data Breach. Pursuant to the Settlement Agreement, Target has agreed to pay $10 million to class member guests, certain administrative costs associated with the settlement, and attorneys’ fees and expenses to class counsel as the Court may award. The claims asserted by payment card issuing banks and shareholders in the MDL Actions remain pending. One action was filed in Canada relating to the Data Breach. That action was dismissed, but is being appealed. State and federal agencies, including 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 accrual for estimated probable losses for what we believe to be the vast majority of actual and potential Data Breach related claims 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. | ||||||||
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) | 165 | 38 | ||||||
Payments made/received | (46 | ) | (17 | ) | ||||
Balance at January 31, 2015 | 171 | 60 | ||||||
Expenses incurred/insurance receivable recorded (a) | 3 | — | ||||||
Payments made/received | (7 | ) | (5 | ) | ||||
Balance at May 2, 2015 | 167 | 55 | ||||||
(a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below. | ||||||||
We recorded $3 million and $26 million of pretax Data Breach-related expenses during the three months ended May 2, 2015 and May 3, 2014, respectively, partially offset by expected insurance recoveries of $8 million during the three months ended May 3, 2014. These expenses primarily related to legal and other professional services and were included in our Consolidated Statements of Operations as Selling, General and Administrative Expenses (SG&A), but were not part of our segment results. | ||||||||
Since the Data Breach, we have incurred $256 million of cumulative expenses, partially offset by expected insurance recoveries of $90 million, for net cumulative expenses of $166 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. Since the Data Breach, we have received $35 million from our network-security insurance carriers of the $90 million accrued. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||
2-May-15 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||
Our derivative instruments primarily consist of interest rate swaps, which are used to mitigate interest rate risk. As a result of our use of derivative instruments, we have counterparty credit exposure to large global financial institutions. We monitor this concentration of counterparty credit risk on an ongoing basis. See Note 4 for a description of the fair value measurement of our derivative instruments and their classification on the Consolidated Statements of Financial Position. | ||||||||||
As of May 2, 2015, three swaps were designated as fair value hedges. 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. Including this swap, we had two swaps designated as fair value hedges at May 3, 2014. No ineffectiveness was recognized during the three months ended May 2, 2015 or May 3, 2014. | ||||||||||
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 | |||||||||
(millions) | ||||||||||
Type of Contract | Classification of (Income)/Expense | May 2, | May 3, | |||||||
2015 | 2014 | |||||||||
Interest rate swaps | Net interest expense | $ | (9 | ) | $ | (5 | ) | |||
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 $29 million, $34 million and $48 million, at May 2, 2015, January 31, 2015 and May 3, 2014, respectively. |
Share_Repurchase
Share Repurchase | 3 Months Ended | ||||||
2-May-15 | |||||||
Equity [Abstract] | |||||||
Share Repurchase | Share Repurchase | ||||||
We repurchase shares primarily through open market transactions under a $5 billion share repurchase program authorized by our Board of Directors in January 2012. | |||||||
During the first quarter of 2015, we entered into an accelerated share repurchase agreement (ASR) to repurchase $200 to $300 million of our common stock under the existing share repurchase program. Under the agreement, we prepaid $300 million and received an initial delivery of 2.2 million shares, which were retired, resulting in a $180 million reduction to shareholders' investment. Because the minimum repurchase will be $200 million, as of May 2, 2015, $20 million is included as an additional reduction to shareholders' investment and $100 million is included in other current assets in the Consolidated Statement of Financial Position. The ASR is not accounted for as a derivative instrument. | |||||||
In May 2015, the contract was settled and we received an additional 1.1 million shares, which were retired, and $35 million for the remaining amount not settled in shares. We repurchased a total of 3.3 million shares under the ASR for a total cash investment of $265 million ($80.74 per share). | |||||||
Share Repurchases (excluding ASR) | Three Months Ended | ||||||
(millions, except per share data) | May 2, | May 3, | |||||
2015 (a) | 2014 | ||||||
Total number of shares purchased | 3.7 | — | |||||
Average price paid per share | $ | 80.85 | $ | — | |||
Total investment | $ | 300 | $ | — | |||
Note: Accelerated share repurchase activity is omitted because the transaction was not fully settled as of May 2, 2015. | |||||||
(a) Includes 0.1 million shares delivered upon the noncash settlement of prepaid contracts which had an original cash investment of $3 million and an aggregate market value at their settlement dates of $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. |
Pension_Postretirement_Health_
Pension, Postretirement Health Care and Other Benefits | 3 Months Ended | |||||||||||||||
2-May-15 | ||||||||||||||||
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 | Three Months Ended | |||||||||||||||
(millions) | May 2, | May 3, | May 2, | May 3, | ||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 28 | $ | 28 | $ | 1 | $ | 1 | ||||||||
Interest cost | 38 | 38 | — | 1 | ||||||||||||
Expected return on assets | (65 | ) | (58 | ) | — | — | ||||||||||
Amortization of losses | 23 | 16 | 1 | 1 | ||||||||||||
Amortization of prior service cost | (3 | ) | (3 | ) | (4 | ) | (4 | ) | ||||||||
Settlement charges | 2 | — | — | — | ||||||||||||
Total | $ | 23 | $ | 21 | $ | (2 | ) | $ | (1 | ) | ||||||
As a result of the restructuring initiatives discussed in Note 3, we remeasured the assets and liabilities of our largest pension plan as of March 9, 2015. The remeasurement resulted in a $208 million reduction to the projected benefit obligation, primarily resulting from a 41 basis point increase in the discount rate used, and a $47 million reduction of plan assets. Subsequent to the remeasurement, the pension plan was overfunded, with plan assets of $3,725 million exceeding the projected benefit obligation of $3,604 million. We expect this remeasurement will reduce 2015 pension expense by $26 million, $3 million of which was recognized during the first quarter. | ||||||||||||||||
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 income of $3 million and $7 million for the three months ended May 2, 2015 and May 3, 2014, respectively. During the three months ended May 2, 2015 and May 3, 2014, we made no investments in prepaid forward contracts in our own common stock. 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 | Number of Shares | Contractual Price Paid per Share | Contractual Fair Value | Total Cash Investment | ||||||||||||
(millions, except per share data) | ||||||||||||||||
2-May-15 | 0.4 | $ | 41.13 | $ | 35 | $ | 18 | |||||||||
31-Jan-15 | 0.5 | $ | 41.11 | $ | 38 | $ | 21 | |||||||||
3-May-14 | 1.3 | $ | 48.81 | $ | 80 | $ | 63 | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||
2-May-15 | ||||||||||||||||
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 1, 2014 | $ | (25 | ) | $ | (444 | ) | $ | (422 | ) | $ | (891 | ) | ||||
Other comprehensive income before reclassifications | — | 61 | — | 61 | ||||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 7 | (b) | 8 | ||||||||||
May 3, 2014 | $ | (24 | ) | $ | (383 | ) | $ | (415 | ) | $ | (822 | ) | ||||
January 31, 2015 | $ | (22 | ) | $ | (16 | ) | $ | (561 | ) | $ | (599 | ) | ||||
Other comprehensive (loss)/income before reclassifications | — | (1 | ) | 99 | 98 | |||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 10 | (b) | 11 | ||||||||||
May 2, 2015 | $ | (21 | ) | $ | (17 | ) | $ | (452 | ) | $ | (490 | ) | ||||
(a) Represents gains and losses on cash flow hedges, net of $1 million of taxes for both three months ended May 2, 2015 and May 3, 2014, which is recorded in net interest expense on the Consolidated Statements of Operations. | ||||||||||||||||
(b) Represents amortization of pension and other benefit liabilities, net of $7 million and $4 million of taxes for the three months ended May 2, 2015 and May 3, 2014, respectively. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||
2-May-15 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting | Segment Reporting | |||||||||||
Our segment measure of profit is used by management to evaluate performance and make operating decisions. We operate as a single segment that includes all of our continuing operations, which are designed to enable guests to purchase products seamlessly in stores, online or through mobile devices. | ||||||||||||
Business Segment Results | Three Months Ended | |||||||||||
(millions) | May 2, | May 3, | ||||||||||
2015 | 2014 | |||||||||||
Sales | $ | 17,119 | $ | 16,657 | ||||||||
Cost of sales | 11,911 | 11,748 | ||||||||||
Gross margin | 5,208 | 4,909 | ||||||||||
Selling, general and administrative expenses (a)(e) | 3,407 | 3,345 | ||||||||||
Depreciation and amortization | 540 | 511 | ||||||||||
Segment profit | $ | 1,261 | $ | 1,053 | ||||||||
Restructuring costs (b)(e) | (103 | ) | — | |||||||||
Data Breach related costs (c)(e) | (3 | ) | (18 | ) | ||||||||
Card brand conversion costs (d)(e) | — | (13 | ) | |||||||||
Earnings from continuing operations before interest expense and income taxes | 1,154 | 1,022 | ||||||||||
Net interest expense | 155 | 152 | ||||||||||
Earnings from continuing operations before income taxes | $ | 999 | $ | 870 | ||||||||
Note: Amounts may not foot due to rounding. | ||||||||||||
(a) Beginning with the first quarter of 2015, segment EBIT includes the impact of the reduction of the the beneficial interest asset. For comparison purposes, prior year segment EBIT has been revised. | ||||||||||||
(b) Refer to Note 3 for more information on restructuring costs. | ||||||||||||
(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, restructuring costs, Data Breach related costs and card brand conversion costs equal consolidated SG&A expenses. | ||||||||||||
Reconciliation of Segment Assets to Total Assets | May 2, | January 31, | May 3, | |||||||||
(millions) | 2015 | 2015 | 2014 | |||||||||
Segment assets | $ | 39,785 | $ | 39,569 | $ | 37,680 | ||||||
Assets of discontinued operations | 606 | 1,775 | 6,323 | |||||||||
Unallocated assets (a) | 55 | 60 | 39 | |||||||||
Total assets | $ | 40,446 | $ | 41,404 | $ | 44,042 | ||||||
(a) Represents the insurance receivable related to the Data Breach. |
Canada_Exit_Tables
Canada Exit (Tables) | 3 Months Ended | |||||||||||
2-May-15 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement | As of May 2, 2015, all stores have been closed. | |||||||||||
Loss on Discontinued Operations | Three Months Ended | |||||||||||
(millions) | ||||||||||||
May 2, | May 3, | |||||||||||
2015 | 2014 | |||||||||||
Sales | $ | — | $ | 393 | ||||||||
Cost of sales | — | 319 | ||||||||||
SG&A expenses | — | 218 | ||||||||||
Depreciation and amortization | — | 67 | ||||||||||
Interest expense | — | 19 | ||||||||||
Pretax loss from operations | — | (230 | ) | |||||||||
Pretax exit costs (a) | (34 | ) | — | |||||||||
Income taxes | 18 | 77 | ||||||||||
Loss on discontinued operations | $ | (16 | ) | $ | (153 | ) | ||||||
(a) The pretax exit costs primarily related to our ongoing support of the liquidation process, other professional fees, and a $4 million payment to the Canadian employee trust. | ||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities | Recorded Assets and Liabilities | |||||||||||
Assets and Liabilities of Discontinued Operations | ||||||||||||
(millions) | ||||||||||||
May 2, | January 31, | May 3, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Income tax benefit | $ | 264 | $ | 1,430 | Inventory | $ | 544 | |||||
Receivables from Canada Subsidiaries | 342 | 326 | Property and equipment, net | 5,025 | ||||||||
Receivables under the debtor-in-possession credit facility | — | 19 | Other | 754 | ||||||||
Total assets | $ | 606 | $ | 1,775 | Total assets | $ | 6,323 | |||||
Capital lease obligations | $ | 1,233 | ||||||||||
Accrued liabilities | $ | 271 | $ | 296 | Accounts payable and other liabilities | 517 | ||||||
Total liabilities | $ | 271 | $ | 296 | Total liabilities | $ | 1,750 | |||||
Restructuring_Initiatives_Tabl
Restructuring Initiatives (Tables) | 3 Months Ended | |||||||||
2-May-15 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
Restructuring Costs | These costs were not included in our segment results. | |||||||||
First Quarter Restructuring Costs | 2015 | |||||||||
(millions) | ||||||||||
Severance | $ | 99 | ||||||||
Pension and other | 4 | |||||||||
Total | $ | 103 | ||||||||
Restructuring-Related Liabilities | Accruals for restructuring costs are included in other current liabilities as of May 2, 2015 as follows: | |||||||||
Restructuring-Related Liabilities | Severance | Pension and Other | Total | |||||||
(millions) | ||||||||||
Restructuring liability as of January 31, 2015 | $ | — | $ | — | $ | — | ||||
Charges during period | 99 | 4 | 103 | |||||||
Paid or otherwise settled | (28 | ) | (4 | ) | (32 | ) | ||||
Restructuring liability as of May 2, 2015 | $ | 71 | $ | — | $ | 71 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||
2-May-15 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements - Recurring Basis | 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 | ||||||||||||||||||||
(millions) | Pricing Category | May 2, | January 31, | May 3, | |||||||||||||||||
2015 | 2015 | 2014 | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||
Short-term investments | Level 1 | $ | 2,073 | $ | 1,520 | $ | 3 | ||||||||||||||
Other current assets | |||||||||||||||||||||
Interest rate swaps(a) | Level 2 | — | — | 1 | |||||||||||||||||
Prepaid forward contracts | Level 1 | 35 | 38 | 80 | |||||||||||||||||
Beneficial interest asset | Level 3 | 35 | 43 | 62 | |||||||||||||||||
Other noncurrent assets | |||||||||||||||||||||
Interest rate swaps(a) | Level 2 | 46 | 65 | 56 | |||||||||||||||||
Company-owned life insurance investments(b) | Level 2 | 332 | 322 | 313 | |||||||||||||||||
Beneficial interest asset | Level 3 | 25 | 31 | 46 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Other noncurrent liabilities | |||||||||||||||||||||
Interest rate swaps(a) | Level 2 | 20 | 24 | 35 | |||||||||||||||||
(a) See Note 7 for additional information on interest rate swaps. | |||||||||||||||||||||
(b) 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 $781 million at May 2, 2015, $773 million at January 31, 2015 and $800 million at May 3, 2014. | |||||||||||||||||||||
Fair Value Measurements, Significant Financial Instruments not Measured at Fair Value | |||||||||||||||||||||
Significant Financial Instruments not Measured at Fair Value (a) | May 2, 2015 | January 31, 2015 | May 3, 2014 | ||||||||||||||||||
(millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | Amount | Value | ||||||||||||||||
Debt (b) | $ | 11,947 | $ | 13,542 | $ | 11,946 | $ | 14,089 | $ | 12,064 | $ | 13,721 | |||||||||
(a) The carrying amounts of certain other current assets, 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. |
Notes_Payable_and_LongTerm_Deb1
Notes Payable and Long-Term Debt (Tables) | 3 Months Ended | |||||||
2-May-15 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Commercial Paper | We obtain short-term financing from time to time under our commercial paper program, a form of notes payable. | |||||||
Commercial Paper | Three Months Ended | |||||||
(dollars in millions) | May 2, | May 3, | ||||||
2015 | 2014 | |||||||
Maximum daily amount outstanding during the period | $ | — | $ | 590 | ||||
Average daily amount outstanding during the period | — | 279 | ||||||
Amount outstanding at period-end | — | 386 | ||||||
Weighted average interest rate | — | % | 0.1 | % | ||||
Data_Breach_Tables
Data Breach (Tables) | 3 Months Ended | |||||||
2-May-15 | ||||||||
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) | 165 | 38 | ||||||
Payments made/received | (46 | ) | (17 | ) | ||||
Balance at January 31, 2015 | 171 | 60 | ||||||
Expenses incurred/insurance receivable recorded (a) | 3 | — | ||||||
Payments made/received | (7 | ) | (5 | ) | ||||
Balance at May 2, 2015 | 167 | 55 | ||||||
(a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||
2-May-15 | ||||||||||
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 | |||||||||
(millions) | ||||||||||
Type of Contract | Classification of (Income)/Expense | May 2, | May 3, | |||||||
2015 | 2014 | |||||||||
Interest rate swaps | Net interest expense | $ | (9 | ) | $ | (5 | ) |
Share_Repurchase_Tables
Share Repurchase (Tables) | 3 Months Ended | ||||||
2-May-15 | |||||||
Equity [Abstract] | |||||||
Share Repurchase | We repurchased a total of 3.3 million shares under the ASR for a total cash investment of $265 million ($80.74 per share). | ||||||
Share Repurchases (excluding ASR) | Three Months Ended | ||||||
(millions, except per share data) | May 2, | May 3, | |||||
2015 (a) | 2014 | ||||||
Total number of shares purchased | 3.7 | — | |||||
Average price paid per share | $ | 80.85 | $ | — | |||
Total investment | $ | 300 | $ | — | |||
Note: Accelerated share repurchase activity is omitted because the transaction was not fully settled as of May 2, 2015. | |||||||
(a) Includes 0.1 million shares delivered upon the noncash settlement of prepaid contracts which had an original cash investment of $3 million and an aggregate market value at their settlement dates of $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. |
Pension_Postretirement_Health_1
Pension, Postretirement Health Care and Other Benefits (Tables) | 3 Months Ended | |||||||||||||||
2-May-15 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Net Pension and Postretirement Health Care Benefits Expense | 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 | Three Months Ended | |||||||||||||||
(millions) | May 2, | May 3, | May 2, | May 3, | ||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 28 | $ | 28 | $ | 1 | $ | 1 | ||||||||
Interest cost | 38 | 38 | — | 1 | ||||||||||||
Expected return on assets | (65 | ) | (58 | ) | — | — | ||||||||||
Amortization of losses | 23 | 16 | 1 | 1 | ||||||||||||
Amortization of prior service cost | (3 | ) | (3 | ) | (4 | ) | (4 | ) | ||||||||
Settlement charges | 2 | — | — | — | ||||||||||||
Total | $ | 23 | $ | 21 | $ | (2 | ) | $ | (1 | ) | ||||||
Prepaid Forward Contracts on Target Common Stock | The settlement dates of these instruments are regularly renegotiated with the counterparty. | |||||||||||||||
Prepaid Forward Contracts on Target Common Stock | Number of Shares | Contractual Price Paid per Share | Contractual Fair Value | Total Cash Investment | ||||||||||||
(millions, except per share data) | ||||||||||||||||
2-May-15 | 0.4 | $ | 41.13 | $ | 35 | $ | 18 | |||||||||
31-Jan-15 | 0.5 | $ | 41.11 | $ | 38 | $ | 21 | |||||||||
3-May-14 | 1.3 | $ | 48.81 | $ | 80 | $ | 63 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
2-May-15 | ||||||||||||||||
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 1, 2014 | $ | (25 | ) | $ | (444 | ) | $ | (422 | ) | $ | (891 | ) | ||||
Other comprehensive income before reclassifications | — | 61 | — | 61 | ||||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 7 | (b) | 8 | ||||||||||
May 3, 2014 | $ | (24 | ) | $ | (383 | ) | $ | (415 | ) | $ | (822 | ) | ||||
January 31, 2015 | $ | (22 | ) | $ | (16 | ) | $ | (561 | ) | $ | (599 | ) | ||||
Other comprehensive (loss)/income before reclassifications | — | (1 | ) | 99 | 98 | |||||||||||
Amounts reclassified from AOCI | 1 | (a) | — | 10 | (b) | 11 | ||||||||||
May 2, 2015 | $ | (21 | ) | $ | (17 | ) | $ | (452 | ) | $ | (490 | ) | ||||
(a) Represents gains and losses on cash flow hedges, net of $1 million of taxes for both three months ended May 2, 2015 and May 3, 2014, which is recorded in net interest expense on the Consolidated Statements of Operations. | ||||||||||||||||
(b) Represents amortization of pension and other benefit liabilities, net of $7 million and $4 million of taxes for the three months ended May 2, 2015 and May 3, 2014, respectively. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||
2-May-15 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Business Segment Results and Total Assets by Segment | We operate as a single segment that includes all of our continuing operations, which are designed to enable guests to purchase products seamlessly in stores, online or through mobile devices. | |||||||||||
Business Segment Results | Three Months Ended | |||||||||||
(millions) | May 2, | May 3, | ||||||||||
2015 | 2014 | |||||||||||
Sales | $ | 17,119 | $ | 16,657 | ||||||||
Cost of sales | 11,911 | 11,748 | ||||||||||
Gross margin | 5,208 | 4,909 | ||||||||||
Selling, general and administrative expenses (a)(e) | 3,407 | 3,345 | ||||||||||
Depreciation and amortization | 540 | 511 | ||||||||||
Segment profit | $ | 1,261 | $ | 1,053 | ||||||||
Restructuring costs (b)(e) | (103 | ) | — | |||||||||
Data Breach related costs (c)(e) | (3 | ) | (18 | ) | ||||||||
Card brand conversion costs (d)(e) | — | (13 | ) | |||||||||
Earnings from continuing operations before interest expense and income taxes | 1,154 | 1,022 | ||||||||||
Net interest expense | 155 | 152 | ||||||||||
Earnings from continuing operations before income taxes | $ | 999 | $ | 870 | ||||||||
Note: Amounts may not foot due to rounding. | ||||||||||||
(a) Beginning with the first quarter of 2015, segment EBIT includes the impact of the reduction of the the beneficial interest asset. For comparison purposes, prior year segment EBIT has been revised. | ||||||||||||
(b) Refer to Note 3 for more information on restructuring costs. | ||||||||||||
(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, restructuring costs, Data Breach related costs and card brand conversion costs equal consolidated SG&A expenses. | ||||||||||||
Reconciliation of Segment Assets to Total Assets | May 2, | January 31, | May 3, | |||||||||
(millions) | 2015 | 2015 | 2014 | |||||||||
Segment assets | $ | 39,785 | $ | 39,569 | $ | 37,680 | ||||||
Assets of discontinued operations | 606 | 1,775 | 6,323 | |||||||||
Unallocated assets (a) | 55 | 60 | 39 | |||||||||
Total assets | $ | 40,446 | $ | 41,404 | $ | 44,042 | ||||||
(a) Represents the insurance receivable related to the Data Breach. |
Canada_Exit_Details
Canada Exit (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 | Jan. 31, 2015 | ||
Loss on Discontinued Operations | |||||
Loss on discontinued operations | ($16) | ($153) | |||
Canada Exit | |||||
Loss on Discontinued Operations | |||||
Sales | 0 | 393 | |||
Cost of sales | 0 | 319 | |||
SG&A expenses | 0 | 218 | |||
Depreciation and amortization | 0 | 67 | |||
Interest expense | 0 | 19 | |||
Pretax loss from operations | 0 | -230 | |||
Pretax exit costs | -34 | [1] | 0 | [1] | |
Income taxes | 18 | 77 | |||
Loss on discontinued operations | -16 | -153 | |||
Pretax exit costs related to payment to Canada employee trust | 4 | ||||
Assets and Liabilities of Discontinued Operations | |||||
Inventory | 544 | ||||
Income tax benefit | 264 | 1,430 | |||
Property and equipment, net | 5,025 | ||||
Receivables from Canada Subsidiaries | 342 | 326 | |||
Other | 754 | ||||
Receivables under the debtor-in-possession credit facility | 0 | 19 | |||
Total assets | 606 | 6,323 | 1,775 | ||
Capital lease obligations | 1,233 | ||||
Accrued liabilities | 271 | 296 | |||
Accounts payable and other liabilities | 517 | ||||
Total liabilities | $271 | $1,750 | $296 | ||
[1] | The pretax exit costs primarily related to our ongoing support of the liquidation process, other professional fees, and a $4 million payment to the Canadian employee trust. |
Canada_Exit_Details_2
Canada Exit (Details 2) (Canada Exit, USD $) | 3 Months Ended | |
Jan. 31, 2015 | 2-May-15 | |
Canada Exit | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
DIP facility, provision for borrowings | $175,000,000 | |
Debtor-in-Possession Financing, Borrowings Outstanding | -19,000,000 | 0 |
Tax benefit in discontinued operations | $1,627,000,000 |
Restructuring_Initiatives_Cost
Restructuring Initiatives (Costs) (Details) (2015 Restructuring, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 2-May-15 |
Restructuring Cost and Reserve [Line Items] | |
Charges during period | $103 |
Severance | |
Restructuring Cost and Reserve [Line Items] | |
Charges during period | 99 |
Pension and other | |
Restructuring Cost and Reserve [Line Items] | |
Charges during period | 4 |
SG&A | |
Restructuring Cost and Reserve [Line Items] | |
Charges during period | 103 |
SG&A | Severance | |
Restructuring Cost and Reserve [Line Items] | |
Charges during period | 99 |
SG&A | Pension and other | |
Restructuring Cost and Reserve [Line Items] | |
Charges during period | $4 |
Restructuring_Initiatives_Liab
Restructuring Initiatives (Liabilities) (Details) (2015 Restructuring, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 2-May-15 |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of | $0 |
Charges during period | 103 |
Paid or otherwise settled | -32 |
Restructuring liability as of | 71 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of | 0 |
Charges during period | 99 |
Paid or otherwise settled | -28 |
Restructuring liability as of | 71 |
Pension and other | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of | 0 |
Charges during period | 4 |
Paid or otherwise settled | -4 |
Restructuring liability as of | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 2-May-15 | Jan. 31, 2015 | 3-May-14 | |||
In Millions, unless otherwise specified | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Other current assets | $1,672 | $1,754 | $1,723 | |||
Other noncurrent assets | 1,012 | 917 | 1,080 | |||
Other noncurrent liabilities | 1,404 | 1,452 | 1,504 | |||
Fair value measured on recurring basis | Company-owned life insurance investments | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Company-owned life insurance investments | 781 | 773 | 800 | |||
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Other current assets | 35 | 38 | 80 | |||
Fair value measured on recurring basis | Level 1 | Short-term investments | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Cash and cash equivalents | 2,073 | 1,520 | 3 | |||
Fair value measured on recurring basis | Level 2 | Interest rate swaps | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Other current assets | 0 | [1] | 0 | [1] | 1 | [1] |
Other noncurrent assets | 46 | [1] | 65 | [1] | 56 | [1] |
Other noncurrent liabilities | 20 | [1] | 24 | [1] | 35 | [1] |
Fair value measured on recurring basis | Level 2 | Company-owned life insurance investments | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Other noncurrent assets | 332 | [2] | 322 | [2] | 313 | [2] |
Fair value measured on recurring basis | Level 3 | Beneficial interest asset | ||||||
Financial assets and liabilities measured at fair value on a recurring basis | ||||||
Other current assets | 35 | 43 | 62 | |||
Other noncurrent assets | $25 | $31 | $46 | |||
[1] | See Note 7 for additional information on interest rate swaps. | |||||
[2] | The carrying amount and estimated fair value of debt exclude unamortized swap valuation adjustments and capital lease obligations. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 2-May-15 | Jan. 31, 2015 | 3-May-14 | |||
In Millions, unless otherwise specified | ||||||
Carrying Amount | ||||||
Financial liabilities | ||||||
Debt | $11,947 | [1],[2] | $11,946 | [1],[2] | $12,064 | [1],[2] |
Fair Value | ||||||
Financial liabilities | ||||||
Debt | $13,542 | [1],[2] | $14,089 | [1],[2] | $13,721 | [1],[2] |
[1] | The carrying amounts of certain other current assets, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. | |||||
[2] | The carrying amount and estimated fair value of debt exclude unamortized swap valuation adjustments and capital lease obligations. |
Notes_Payable_and_LongTerm_Deb2
Notes Payable and Long-Term Debt (Details) (Commercial paper, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 |
Commercial paper | ||
Debt Instrument Line Items | ||
Maximum daily amount outstanding during the period | $0 | $590 |
Average daily amount outstanding during the period | 0 | 279 |
Amount outstanding at period-end | $0 | $386 |
Weighted average interest rate | 0.00% | 0.10% |
Data_Breach_Details
Data Breach (Details) (USD $) | 3 Months Ended | 9 Months Ended | 18 Months Ended | |||||
2-May-15 | 3-May-14 | Feb. 01, 2014 | Jan. 31, 2015 | 2-May-15 | ||||
action | account | |||||||
credit_card_network | ||||||||
Insurance Settlements Receivable [Roll Forward] | ||||||||
Expenses incurred | $3,000,000 | [1],[2] | $18,000,000 | [1],[2] | ||||
Data breach | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of credit and debit card accounts stolen | 40,000,000 | |||||||
Number of individuals whose personal information was stolen | 70,000,000 | |||||||
Number of major credit card networks | 4 | |||||||
Number of actions filed seeking damages, more than | 100 | |||||||
Payment agreement | 10,000,000 | |||||||
Liabilities [Roll Forward] | ||||||||
Balance at | 171,000,000 | 61,000,000 | 52,000,000 | |||||
Expenses incurred/insurance receivable recorded | 3,000,000 | [3] | 26,000,000 | [3] | 165,000,000 | [3] | ||
Payments made/received | -7,000,000 | -35,000,000 | -46,000,000 | |||||
Balance at | 167,000,000 | 52,000,000 | 61,000,000 | 171,000,000 | 167,000,000 | |||
Insurance Settlements Receivable [Roll Forward] | ||||||||
Balance at | 60,000,000 | 44,000,000 | 39,000,000 | |||||
Expenses incurred/insurance receivable recorded | 0 | [3] | 8,000,000 | [3] | 38,000,000 | [3] | ||
Payments made/received | -5,000,000 | -13,000,000 | -17,000,000 | |||||
Balance at | 55,000,000 | 39,000,000 | 44,000,000 | 60,000,000 | 55,000,000 | |||
Expenses incurred | 256,000,000 | |||||||
Expected insurance recoveries | 90,000,000 | |||||||
Insurance Recoveries | 35,000,000 | |||||||
Net expense | 166,000,000 | |||||||
Network security insurance coverage | 100,000,000 | |||||||
Network security insurance coverage, deductible | 10,000,000 | |||||||
Network security insurance coverage, sublimit | $50,000,000 | |||||||
[1] | Refer to Note 6 for more information on Data Breach related costs. | |||||||
[2] | The sum of segment SG&A expenses, restructuring costs, Data Breach related costs and card brand conversion costs equal consolidated SG&A expenses. | |||||||
[3] | 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 | |||
2-May-15 | 3-May-14 | Jan. 31, 2015 | Mar. 31, 2014 | |
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Amount of ineffectiveness recognized | $0 | $0 | ||
Derivative Contracts - Effect on Results of Operations | ||||
Unamortized hedged debt valuation gains from terminated and de-designated interest rate swaps | 29,000,000 | 48,000,000 | 34,000,000 | |
Designated as Hedging Instrument | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Number of interest rate swaps | 3 | 2 | ||
Interest rate swaps | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Derivative, notional amount | 250,000,000 | |||
Derivative Contracts - Effect on Results of Operations | ||||
Net interest expense | ($9,000,000) | ($5,000,000) |
Share_Repurchase_Details
Share Repurchase (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 4 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 | Jan. 31, 2015 | 28-May-15 | 28-May-15 | |
Share Repurchase Information | ||||||
Total number of shares purchased | 3.7 | [1] | 0 | |||
Average price paid per share | $80.85 | [1] | $0 | |||
Total investment | $300 | [1] | $0 | |||
Total number of shares purchased | 0.1 | |||||
Total cash investment | 483 | 46 | ||||
Repurchase of Share Repurchase Program 2012 | ||||||
Share Repurchase Information | ||||||
Stock repurchase program, authorized amount | 5,000 | |||||
Accelerated Share Repurchase Agreement | ||||||
Share Repurchase Information | ||||||
Reduction to shareholders' investment | 180 | |||||
Additional reduction to shareholders' investment | 20 | |||||
Amount included in other current assets | 100 | |||||
Shares received | 2.2 | [1] | ||||
Accelerated Share Repurchase Agreement | Subsequent Event | ||||||
Share Repurchase Information | ||||||
Shares received | 1.1 | 3.3 | ||||
Price paid per share | $80.74 | |||||
Accelerated Share Repurchase Agreement | Minimum | ||||||
Share Repurchase Information | ||||||
Stock repurchase program, authorized amount | 200 | |||||
Accelerated Share Repurchase Agreement | Maximum | ||||||
Share Repurchase Information | ||||||
Stock repurchase program, authorized amount | 300 | |||||
Accelerated Share Repurchase Agreement | February 1, 2015 to May 2, 2015 | ||||||
Share Repurchase Information | ||||||
Cash received | 300 | |||||
Accelerated Share Repurchase Agreement | May 2015 | Subsequent Event | ||||||
Share Repurchase Information | ||||||
Cash received | -35 | -35 | ||||
Accelerated Share Repurchase Agreement | February 1, 2015 to May 28, 2015 | Subsequent Event | ||||||
Share Repurchase Information | ||||||
Cash received | -265 | -265 | ||||
Cash Investment | ||||||
Share Repurchase Information | ||||||
Total cash investment | 3 | |||||
Prepaid Forward Contracts Market Value | ||||||
Share Repurchase Information | ||||||
Aggregate market value | $7 | |||||
[1] | Includes 0.1 million shares delivered upon the noncash settlement of prepaid contracts which had an original cash investment of $3 million and an aggregate market value at their settlement dates of $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. |
Pension_Postretirement_Health_2
Pension, Postretirement Health Care and Other Benefits (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 09, 2015 | 2-May-15 | 3-May-14 | Jan. 30, 2016 |
Pension Benefits | ||||
Net Pension Expense and Postretirement Healthcare Expense | ||||
Remeasurement reduction to projected benefit obligation | $208 | |||
Remeasurement reduction to plan assets | 47 | |||
Increase in discount rate used | 0.41% | |||
Plan assets | 3,725 | |||
Projected benefit obligation | 3,604 | |||
Reduction to pension expense | 3 | |||
Net Pension and Postretirement Health Care Benefits Expense | ||||
Service cost | 28 | 28 | ||
Interest cost | 38 | 38 | ||
Expected return on assets | -65 | -58 | ||
Amortization of losses | 23 | 16 | ||
Amortization of prior service cost | -3 | -3 | ||
Settlement charges | 2 | 0 | ||
Total | 23 | 21 | ||
Pension Benefits | Scenario, Forecast | ||||
Net Pension Expense and Postretirement Healthcare Expense | ||||
Reduction to pension expense | 26 | |||
Postretirement Health Care Benefits | ||||
Net Pension and Postretirement Health Care Benefits Expense | ||||
Service cost | 1 | 1 | ||
Interest cost | 0 | 1 | ||
Expected return on assets | 0 | 0 | ||
Amortization of losses | 1 | 1 | ||
Amortization of prior service cost | -4 | -4 | ||
Settlement charges | 0 | 0 | ||
Total | ($2) | ($1) |
Pension_Postretirement_Health_3
Pension, Postretirement Health Care and Other Benefits (Details 2) (Prepaid forward contracts, USD $) | 3 Months Ended | 12 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 | Jan. 31, 2015 |
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 | $3,000,000 | $7,000,000 | |
Payments for derivative instrument, investing activities | 0 | 0 | |
Number of Shares | 0.4 | 1.3 | 0.5 |
Contractual Price Paid per Share | $41.13 | $48.81 | $41.11 |
Contractual Fair Value | 35,000,000 | 80,000,000 | 38,000,000 |
Total Cash Investment | $18,000,000 | $63,000,000 | $21,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | ($599) | ($891) | ||
Other comprehensive income before reclassifications | 98 | 61 | ||
Amounts reclassified from AOCI | 11 | 8 | ||
Balance at end of period | -490 | -822 | ||
Income tax expense (benefit) | 348 | 299 | ||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | -22 | -25 | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 1 | [1] | 1 | [1] |
Balance at end of period | -21 | -24 | ||
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 | ||
Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | -16 | -444 | ||
Other comprehensive income before reclassifications | -1 | 61 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Balance at end of period | -17 | -383 | ||
Pension and Other Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | -561 | -422 | ||
Other comprehensive income before reclassifications | 99 | 0 | ||
Amounts reclassified from AOCI | 10 | [2] | 7 | [2] |
Balance at end of period | -452 | -415 | ||
Pension and Other Benefits | Amount reclassified from other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Income tax expense (benefit) | $7 | $4 | ||
[1] | Represents gains and losses on cash flow hedges, net of $1 million of taxes for both three months ended May 2, 2015 and May 3, 2014, which is recorded in net interest expense on the Consolidated Statements of Operations. | |||
[2] | Represents amortization of pension and other benefit liabilities, net of $7 million and $4 million of taxes for the three months ended May 2, 2015 and May 3, 2014, respectively. |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 | ||
Segment Reporting [Abstract] | ||||
Sales | $17,119 | $16,657 | ||
Cost of sales | 11,911 | 11,748 | ||
Gross margin | 5,208 | 4,909 | ||
Selling, general and administrative expenses | 3,407 | [1],[2] | 3,345 | [1],[2] |
Depreciation and amortization | 540 | 511 | ||
Segment profit | 1,261 | 1,053 | ||
Restructuring costs (b)(e) | -103 | [2],[3] | 0 | [2],[3] |
Data Breach related costs | -3 | [2],[4] | -18 | [2],[4] |
Card brand conversion costs | 0 | [2],[5] | -13 | [2],[5] |
Earnings from continuing operations before interest expense and income taxes | 1,154 | 1,022 | ||
Net interest expense | 155 | 152 | ||
Earnings from continuing operations before income taxes | $999 | $870 | ||
[1] | Beginning with the first quarter of 2015, segment EBIT includes the impact of the reduction of the the beneficial interest asset. For comparison purposes, prior year segment EBIT has been revised | |||
[2] | The sum of segment SG&A expenses, restructuring costs, Data Breach related costs and card brand conversion costs equal consolidated SG&A expenses. | |||
[3] | Refer to Note 3 for more information on restructuring costs. | |||
[4] | Refer to Note 6 for more information on Data Breach related costs. | |||
[5] | Expense related to converting co-branded card program to MasterCard. |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | 2-May-15 | Jan. 31, 2015 | 3-May-14 | |||
In Millions, unless otherwise specified | ||||||
Segment Reporting Information | ||||||
Total assets | $40,446 | $41,404 | $44,042 | |||
Segment assets | ||||||
Segment Reporting Information | ||||||
Total assets | 39,785 | 39,569 | 37,680 | |||
Assets of discontinued operations | ||||||
Segment Reporting Information | ||||||
Total assets | 606 | 1,775 | 6,323 | |||
Unallocated assets | ||||||
Segment Reporting Information | ||||||
Total assets | $55 | [1] | $60 | [1] | $39 | [1] |
[1] | Represents the insurance receivable related to the Data Breach. |