Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 01, 2015 | Aug. 20, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | TARGET CORP | |
Entity Central Index Key | 27,419 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 1, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 628,430,247 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 17,427 | $ 16,957 | $ 34,546 | $ 33,614 |
Cost of sales | 12,051 | 11,798 | 23,962 | 23,546 |
Selling, general and administrative expenses | 3,495 | 3,599 | 7,009 | 6,974 |
Depreciation and amortization | 551 | 537 | 1,090 | 1,049 |
Earnings from continuing operations before interest expense and income taxes | 1,330 | 1,023 | 2,485 | 2,045 |
Net interest expense | 148 | 433 | 305 | 585 |
Earnings from continuing operations before income taxes | 1,182 | 590 | 2,180 | 1,460 |
Provision for income taxes | 409 | 199 | 756 | 498 |
Net earnings from continuing operations | 773 | 391 | 1,424 | 962 |
Discontinued operations, net of tax | (20) | (157) | (36) | (309) |
Net earnings | $ 753 | $ 234 | $ 1,388 | $ 653 |
Basic earnings per share | ||||
Continuing operations (in dollars per share) | $ 1.21 | $ 0.62 | $ 2.23 | $ 1.52 |
Discontinued operations (in dollars per share) | (0.03) | (0.25) | (0.06) | (0.49) |
Net earnings per share (in dollars per share) | 1.18 | 0.37 | 2.17 | 1.03 |
Diluted earnings per share | ||||
Continuing operations (in dollars per share) | 1.21 | 0.61 | 2.21 | 1.51 |
Discontinued operations (in dollars per share) | (0.03) | (0.25) | (0.06) | (0.49) |
Net earnings per share (in dollars per share) | $ 1.18 | $ 0.37 | $ 2.16 | $ 1.02 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 635.8 | 633.5 | 638.3 | 633.4 |
Dilutive impact of share-based awards (in shares) | 5.2 | 4.9 | 5.4 | 4.9 |
Diluted (in shares) | 641 | 638.4 | 643.7 | 638.3 |
Antidilutive shares (in shares) | 0 | 5.1 | 0 | 5.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 753 | $ 234 | $ 1,388 | $ 653 |
Other comprehensive income, net of tax | ||||
Pension and other benefit liabilities, net of taxes of $5, $4, $76 and $8 | 8 | 7 | 117 | 14 |
Currency translation adjustment and cash flow hedges, net of taxes of $1, $1, $1 and $1 | 0 | 23 | 1 | 85 |
Other comprehensive income | 8 | 30 | 118 | 99 |
Comprehensive income | $ 761 | $ 264 | $ 1,506 | $ 752 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other benefit liabilities, net of taxes of $5, $4, $76 and $8 | $ 5 | $ 4 | $ 76 | $ 8 |
Currency translation adjustment and cash flow hedges, net of taxes of $1, $1, $1 and $1 | $ 1 | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Assets | |||
Cash and cash equivalents, including short term investments of $1,985, $1,520 and $3 | $ 2,742 | $ 2,210 | $ 766 |
Inventory | 8,269 | 8,290 | 7,929 |
Assets of discontinued operations | 97 | 1,333 | 693 |
Other current assets | 2,250 | 2,254 | 2,166 |
Total current assets | 13,358 | 14,087 | 11,554 |
Property and equipment | |||
Land | 6,120 | 6,127 | 6,109 |
Buildings and improvements | 26,726 | 26,613 | 26,231 |
Fixtures and equipment | 5,145 | 5,329 | 5,042 |
Computer hardware and software | 2,550 | 2,552 | 2,280 |
Construction-in-progress | 494 | 424 | 652 |
Accumulated depreciation | (15,452) | (15,093) | (14,182) |
Property and equipment, net | 25,583 | 25,952 | 26,132 |
Noncurrent assets of discontinued operations | 456 | 442 | 5,705 |
Other noncurrent assets | 989 | 923 | 1,064 |
Total assets | 40,386 | 41,404 | 44,455 |
Liabilities and shareholders’ investment | |||
Accounts payable | 6,944 | 7,759 | 6,986 |
Accrued and other current liabilities | 3,768 | 3,783 | 3,644 |
Current portion of long-term debt and other borrowings | 841 | 91 | 294 |
Liabilities of discontinued operations | 60 | 103 | 412 |
Total current liabilities | 11,613 | 11,736 | 11,336 |
Long-term debt and other borrowings | 11,883 | 12,705 | 12,625 |
Deferred income taxes | 1,319 | 1,321 | 1,233 |
Noncurrent liabilities of discontinued operations | 276 | 193 | 1,333 |
Other noncurrent liabilities | 1,353 | 1,452 | 1,495 |
Total noncurrent liabilities | 14,831 | 15,671 | 16,686 |
Shareholders’ investment | |||
Common stock | 53 | 53 | 53 |
Additional paid-in capital | 5,271 | 4,899 | 4,561 |
Retained earnings | 9,099 | 9,644 | 12,611 |
Accumulated other comprehensive loss | |||
Pension and other benefit liabilities | (444) | (561) | (408) |
Currency translation adjustment and cash flow hedges | (37) | (38) | (384) |
Total shareholders’ investment | 13,942 | 13,997 | 16,433 |
Total liabilities and shareholders’ investment | $ 40,386 | $ 41,404 | $ 44,455 |
Consolidated Statements of Fin6
Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Statement of Financial Position [Abstract] | |||
Cash and cash equivalents, short-term investments | $ 1,985 | $ 1,520 | $ 3 |
Common Stock, shares authorized (in shares) | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 |
Common Stock, par value (in dollars per share) | $ 0.0833 | $ 0.0833 | $ 0.0833 |
Common Stock, shares issued (in shares) | 630,446,029 | 640,213,987 | 633,644,605 |
Common Stock, shares outstanding (in shares) | 630,446,029 | 640,213,987 | 633,644,605 |
Preferred Stock, shares authorized (in shares) | 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 (in shares) | 0 | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | ||||
Operating activities | ||||||||
Net earnings | $ 753 | $ 234 | $ 1,388 | $ 653 | $ (1,636) | |||
Losses from discontinued operations, net of tax | (20) | (157) | (36) | (309) | ||||
Net earnings from continuing operations | 773 | 391 | 1,424 | 962 | ||||
Adjustments to reconcile net earnings to cash provided by operations: | ||||||||
Depreciation and amortization | 551 | 537 | 1,090 | 1,049 | ||||
Share-based compensation expense | 54 | 40 | ||||||
Deferred income taxes | (45) | (158) | ||||||
Loss on debt extinguishment | 0 | 285 | ||||||
Noncash (gains)/losses and other, net | (34) | 26 | ||||||
Changes in operating accounts: | ||||||||
Inventory | 18 | (130) | ||||||
Other assets | 156 | 179 | ||||||
Accounts payable and accrued liabilities | (697) | (318) | ||||||
Cash provided by operating activities—continuing operations | 1,966 | 1,935 | ||||||
Cash provided by/ (required for) operating activities—discontinued operations | 823 | (421) | ||||||
Cash provided by operations | 2,789 | 1,514 | ||||||
Investing activities | ||||||||
Expenditures for property and equipment | (710) | (881) | ||||||
Proceeds from disposal of property and equipment | 13 | 44 | ||||||
Proceeds from sale of business | 8 | 0 | ||||||
Cash paid for acquisitions, net of cash assumed | 0 | (20) | ||||||
Other investments | 38 | 46 | ||||||
Cash required for investing activities—continuing operations | (651) | (811) | ||||||
Cash provided by/ (required for) investing activities—discontinued operations | 19 | (171) | ||||||
Cash required for investing activities | (632) | (982) | ||||||
Financing activities | ||||||||
Change in commercial paper, net | 0 | 109 | ||||||
Additions to long-term debt | 0 | 1,993 | ||||||
Reductions of long-term debt | (54) | (2,039) | ||||||
Dividends paid | (665) | (545) | ||||||
Repurchase of stock | (1,237) | 0 | ||||||
Stock option exercises and related tax benefit | 331 | 55 | ||||||
Cash required for financing activities | (1,625) | (427) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 3 | ||||||
Net increase in cash and cash equivalents | 532 | 108 | ||||||
Cash and cash equivalents at beginning of period | 2,210 | 695 | [1] | 695 | [1] | |||
Cash and cash equivalents at end of period | $ 2,742 | $ 803 | [2] | $ 2,742 | $ 803 | [2] | $ 2,210 | |
[1] | Includes cash of our discontinued operations of $25 million at February 1, 2014 | |||||||
[2] | Includes cash of our discontinued operations of $37 million |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | Aug. 02, 2014 | Feb. 01, 2014 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents, discontinued operations | $ 37 | $ 25 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 01, 2015 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | |
Increase (Decrease) in Shareholders' Investment | ||||
Balance | $ 13,997 | $ 16,231 | $ 16,231 | |
Balance (in shares) | 630,446,029 | 630,446,029 | 633,644,605 | 640,213,987 |
Net earnings | $ 753 | $ 1,388 | $ 653 | $ (1,636) |
Other comprehensive income | 8 | 118 | 99 | 292 |
Dividends declared | (691) | (1,273) | ||
Repurchase of stock | (1,243) | (46) | ||
Stock options and awards | 373 | 429 | ||
Balance | $ 13,942 | 13,942 | 16,433 | 13,997 |
Common Stock | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Balance | $ 53 | 53 | $ 53 | |
Balance (in shares) | 630,400,000 | 630,400,000 | 640,200,000 | |
Repurchase of stock | $ (1) | |||
Repurchase of stock (in shares) | (15,200,000) | (800,000) | ||
Stock options and awards | $ 1 | |||
Stock options and awards (in shares) | 5,400,000 | 8,100,000 | ||
Balance | $ 53 | $ 53 | $ 53 | |
Additional Paid-in Capital | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Balance | 4,899 | 4,470 | 4,470 | |
Stock options and awards | 372 | 429 | ||
Balance | 5,271 | 5,271 | 4,899 | |
Retained Earnings | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Balance | 9,644 | 12,599 | 12,599 | |
Net earnings | 1,388 | (1,636) | ||
Dividends declared | (691) | (1,273) | ||
Repurchase of stock | (1,242) | (46) | ||
Balance | 9,099 | 9,099 | 9,644 | |
Accumulated Other Comprehensive Income/(Loss) | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Balance | (599) | $ (891) | (891) | |
Other comprehensive income | 118 | 292 | ||
Balance | $ (481) | $ (481) | $ (599) |
Consolidated Statements of Sh10
Consolidated Statements of Shareholders' Investment (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 1.08 | $ 0.95 | $ 1.99 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Aug. 01, 2015 | |
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. |
Pharmacies and Clinics Transact
Pharmacies and Clinics Transactions | 6 Months Ended |
Aug. 01, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Pharmacies and Clinics Transaction | Pharmacies and Clinics Transaction On June 12, 2015, we entered into an asset purchase agreement with CVS Pharmacy, Inc. (CVS) to sell our pharmacy and clinic businesses for cash consideration of approximately $1.9 billion . The closing of the transaction is subject to regulatory approval and other customary conditions. Either party will be permitted to terminate the agreement if the closing has not occurred on or before March 15, 2016 (or September 15, 2016 solely in the event that, as of March 15, 2016, all conditions other than regulatory approval have been satisfied or waived). Following the closing, CVS will operate the pharmacy and clinic businesses in our stores on a long term basis. The agreement includes the sale of inventory and other assets. These currently held for sale assets have been classified as follows. (millions) August 1, January 31, August 2, Inventory included in other current assets $ 464 $ 500 $ 479 Other current assets 13 — — Other noncurrent assets — 13 12 Total $ 477 $ 513 $ 491 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 were closed. Loss on Discontinued Operations Three Months Ended Six Months Ended (millions) August 1, August 2, August 1, August 2, Sales $ — $ 449 $ — $ 842 Cost of sales — 367 — 686 SG&A expenses — 216 — 434 Depreciation and amortization — 70 — 137 Interest expense — 19 — 38 Pretax loss from operations — (223 ) — (453 ) Pretax exit costs (a) (80 ) — (113 ) — Income taxes 60 66 77 144 Loss on discontinued operations $ (20 ) $ (157 ) $ (36 ) $ (309 ) (a) For the three and six months ended August 1, 2015, the pretax exit costs related to our ongoing support of the liquidation process, other professional fees, and an increase to our accrual for the estimated probable losses related to claims that may be asserted against us, primarily under guarantees of certain leases. Recorded Assets and Liabilities Assets and Liabilities of Discontinued Operations (millions) August 1, January 31, August 2, Income tax benefit $ 234 $ 1,430 Inventory $ 510 Receivables from Canada Subsidiaries 319 326 Property and equipment, net 5,056 Receivables under the debtor-in-possession credit facility — 19 Other 832 Total assets $ 553 $ 1,775 Total assets $ 6,398 Capital lease obligations $ 1,240 Accrued liabilities $ 336 $ 296 Accounts payable and other liabilities 505 Total liabilities $ 336 $ 296 Total liabilities $ 1,745 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 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. Receivables from the Canada Subsidiaries primarily relate to loans made to fund the operations of the Canada Subsidiaries and receivables generated in the ordinary course of business prior to deconsolidation. To assess recoverability, we estimated the fair value of the underlying net assets of the Canada Subsidiaries available for distribution to their creditors in relation to the estimated creditor claims and the priority of these claims. 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. Our ultimate recovery is subject to the final liquidation value of the Canada Subsidiaries. Income Taxes During the second quarter of 2015, we recognized a net tax benefit of $60 million in discontinued operations, which primarily relates to our second quarter pretax exit costs and adjustments to the tax benefit from our investment loss in Canada. During the fourth quarter of 2014, we recognized a tax benefit of $1,627 million in discontinued operations. The majority of the tax benefit was received in the first quarter of 2015, and we expect to use substantially all of the remainder to reduce our 2015 estimated tax payments. |
Canada Exit
Canada Exit | 6 Months Ended |
Aug. 01, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Canada Exit | Pharmacies and Clinics Transaction On June 12, 2015, we entered into an asset purchase agreement with CVS Pharmacy, Inc. (CVS) to sell our pharmacy and clinic businesses for cash consideration of approximately $1.9 billion . The closing of the transaction is subject to regulatory approval and other customary conditions. Either party will be permitted to terminate the agreement if the closing has not occurred on or before March 15, 2016 (or September 15, 2016 solely in the event that, as of March 15, 2016, all conditions other than regulatory approval have been satisfied or waived). Following the closing, CVS will operate the pharmacy and clinic businesses in our stores on a long term basis. The agreement includes the sale of inventory and other assets. These currently held for sale assets have been classified as follows. (millions) August 1, January 31, August 2, Inventory included in other current assets $ 464 $ 500 $ 479 Other current assets 13 — — Other noncurrent assets — 13 12 Total $ 477 $ 513 $ 491 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 were closed. Loss on Discontinued Operations Three Months Ended Six Months Ended (millions) August 1, August 2, August 1, August 2, Sales $ — $ 449 $ — $ 842 Cost of sales — 367 — 686 SG&A expenses — 216 — 434 Depreciation and amortization — 70 — 137 Interest expense — 19 — 38 Pretax loss from operations — (223 ) — (453 ) Pretax exit costs (a) (80 ) — (113 ) — Income taxes 60 66 77 144 Loss on discontinued operations $ (20 ) $ (157 ) $ (36 ) $ (309 ) (a) For the three and six months ended August 1, 2015, the pretax exit costs related to our ongoing support of the liquidation process, other professional fees, and an increase to our accrual for the estimated probable losses related to claims that may be asserted against us, primarily under guarantees of certain leases. Recorded Assets and Liabilities Assets and Liabilities of Discontinued Operations (millions) August 1, January 31, August 2, Income tax benefit $ 234 $ 1,430 Inventory $ 510 Receivables from Canada Subsidiaries 319 326 Property and equipment, net 5,056 Receivables under the debtor-in-possession credit facility — 19 Other 832 Total assets $ 553 $ 1,775 Total assets $ 6,398 Capital lease obligations $ 1,240 Accrued liabilities $ 336 $ 296 Accounts payable and other liabilities 505 Total liabilities $ 336 $ 296 Total liabilities $ 1,745 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 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. Receivables from the Canada Subsidiaries primarily relate to loans made to fund the operations of the Canada Subsidiaries and receivables generated in the ordinary course of business prior to deconsolidation. To assess recoverability, we estimated the fair value of the underlying net assets of the Canada Subsidiaries available for distribution to their creditors in relation to the estimated creditor claims and the priority of these claims. 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. Our ultimate recovery is subject to the final liquidation value of the Canada Subsidiaries. Income Taxes During the second quarter of 2015, we recognized a net tax benefit of $60 million in discontinued operations, which primarily relates to our second quarter pretax exit costs and adjustments to the tax benefit from our investment loss in Canada. During the fourth quarter of 2014, we recognized a tax benefit of $1,627 million in discontinued operations. The majority of the tax benefit was 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 | 6 Months Ended |
Aug. 01, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Initiatives | Restructuring Initiatives During the six months ended August 1, 2015, we initiated a series of headquarters workforce reductions intended to increase organizational effectiveness and provide cost savings that can be reinvested in our growth initiatives. As a result, we recorded $11 million and $114 million of severance and other benefits-related charges within selling, general and administrative expenses (SG&A) during the three and six months ended August 1, 2015, respectively. The vast majority of these expenses will require cash expenditures. These costs were not included in our segment results. Restructuring Costs August 1, 2015 (millions) Three Months Ended Six Months Ended Severance $ 9 $ 108 Pension and other 2 6 Total $ 11 $ 114 Accruals for restructuring costs are included in other current liabilities. Restructuring-Related Liabilities (millions) Severance Pension and Other Total Restructuring liability as of January 31, 2015 $ — $ — $ — Charges during period 108 6 114 Paid or otherwise settled (94 ) (6 ) (100 ) Restructuring liability as of August 1, 2015 $ 14 $ — $ 14 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 01, 2015 | |
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 August 1, January 31, August 2, Assets Cash and cash equivalents Short-term investments Level 1 $ 1,985 $ 1,520 $ 3 Other current assets Interest rate swaps (a) Level 2 25 — — Prepaid forward contracts Level 1 36 38 40 Beneficial interest asset Level 3 29 43 56 Other noncurrent assets Interest rate swaps (a) Level 2 16 65 51 Company-owned life insurance investments (b) Level 2 331 322 314 Beneficial interest asset Level 3 19 31 41 Liabilities Other current liabilities Interest rate swaps (a) Level 2 16 — — Other noncurrent liabilities Interest rate swaps (a) Level 2 — 24 31 (a) See Note 9 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 $783 million at August 1, 2015 , $773 million at January 31, 2015 and $806 million at August 2, 2014 . Significant Financial Instruments not Measured at Fair Value (a) (millions) August 1, 2015 January 31, 2015 August 2, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Debt (b) $ 11,921 $ 13,365 $ 11,946 $ 14,089 $ 12,135 $ 13,553 (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 Long-Term Deb
Notes Payable and Long-Term Debt | 6 Months Ended |
Aug. 01, 2015 | |
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 1, August 2, August 1, August 2, Maximum daily amount outstanding during the period $ — $ 500 $ — $ 590 Average daily amount outstanding during the period — 148 — 214 Amount outstanding at period-end — 189 — 189 Weighted average interest rate — % 0.11 % — % 0.10 % |
Property and Equipment
Property and Equipment | 6 Months Ended |
Aug. 01, 2015 | |
Property, Plant and Equipment [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. We recognized impairment losses during each of the periods presented, primarily resulting from discontinued projects, store closures, and completed or planned land sales. Impairments (a) Three Months Ended Six Months Ended (millions) August 1, August 2, August 1, August 2, Total segment impairments $ 33 $ 46 $ 40 $ 59 Unallocated impairments (b) — 16 — 16 Total impairments $ 33 $ 62 $ 40 $ 75 (a) Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Operations. (b) Represents impairments of undeveloped land. |
Data Breach
Data Breach | 6 Months Ended |
Aug. 01, 2015 | |
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. In August 2015, we entered into a settlement agreement with Visa under which we will pay up to $67 million to eligible Visa card issuers worldwide that issued cards that Visa claimed to have been affected by the Data Breach. Our previously recorded accrual for estimated probable losses related to Visa is consistent with the settlement. We expect to dispute the remaining unsettled claims regarding the Data Breach that have been or may be made against us by the payment card networks. With respect to the three major payment card networks other than Visa, 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, and the Federal Trade Commission are investigating events related to the Data Breach, including how it occurred, its consequences and our responses. The SEC's Enforcement Division concluded its investigation during the second quarter of 2015 and does not intend to recommend an enforcement action against us. 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 (millions) Liabilities Insurance Receivable Balance at February 1, 2014 $ 61 $ 44 Expenses incurred/insurance receivable recorded (a) 175 46 Payments made/received (54 ) (20 ) Balance at August 2, 2014 $ 182 $ 70 Balance at January 31, 2015 $ 171 $ 60 Expenses incurred/insurance receivable recorded (a) 12 — Payments made/received (15 ) (5 ) Balance at August 1, 2015 $ 168 $ 55 (a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below. We recorded $9 million and $12 million of pretax Data Breach-related expenses during the three and six months ended August 1, 2015 , respectively, primarily for legal and other professional services. We recorded $148 million and $175 million of pretax Data Breach-related expenses during the three and six months ended August 2, 2014 , respectively, partially offset by expected insurance recoveries of $38 million and $46 million , respectively. 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. These expenses were included in our Consolidated Statements of Operations as SG&A, but were not part of our segment results. Since the Data Breach, we have incurred $264 million of cumulative expenses, partially offset by expected insurance recoveries of $90 million , for net cumulative expenses of $174 million . Insurance Coverage To limit our exposure to losses relating to Data Breach and other claims, we maintained $100 million of network-security insurance coverage during the period that the Data Breach occurred, 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 Instrument
Derivative Financial Instruments | 6 Months Ended |
Aug. 01, 2015 | |
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 5 for a description of the fair value measurement of our derivative instruments and their classification on the Consolidated Statements of Financial Position. As of August 1, 2015 and August 2, 2014, three interest rate swaps with notional amounts totaling $1,250 million were designated as fair value hedges. No ineffectiveness was recognized during the three and six months ended August 1, 2015 or August 2, 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 (millions) Three Months Ended Six Months Ended Type of Contract Classification of (Income)/Expense August 1, August 2, August 1, August 2, Interest rate swaps Net interest expense $ (9 ) $ (9 ) $ (18 ) $ (13 ) 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 $25 million , $34 million and $43 million , at August 1, 2015 , January 31, 2015 and August 2, 2014 , respectively. |
Share Repurchase
Share Repurchase | 6 Months Ended |
Aug. 01, 2015 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase In June 2015, our Board of Directors authorized a $5 billion expansion of our existing share repurchase program to $10 billion . Under this program, through August 1, 2015, we have repurchased 65.1 million cumulative shares of common stock at an average price of $67.19 , for a total investment of $4.4 billion . In June 2015, we entered into an accelerated share repurchase agreement (ASR) to repurchase $250 to $350 million of our common stock under the existing share repurchase program. In July 2015, the contract was settled and we repurchased a total of 3.8 million shares under the ASR for a total cash investment of $314 million ( $82.67 per share). In April 2015, we entered into an ASR to repurchase $200 to $300 million of our common stock under the existing share repurchase program. In May 2015, the contract was settled and we repurchased a total of 3.3 million shares under the ASR for a total cash investment of $265 million ( $80.74 per share). Neither ASR was accounted for as a derivative instrument. Share Repurchases Six Months Ended (millions, except per share data) August 1, 2015 (a) August 2, 2014 (b) Total number of shares purchased 15.2 0.6 Average price paid per share $ 81.41 $ 55.36 Total investment $ 1,240 $ 34 (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 11 provides the details of our positions in prepaid forward contracts. (b) All of the shares reacquired were delivered upon the noncash settlement of prepaid forward contracts which had an original cash investment of $34 million and an aggregate market value at their settlement dates of $35 million . |
Pension, Postretirement Health
Pension, Postretirement Health Care and Other Benefits | 6 Months Ended |
Aug. 01, 2015 | |
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 Health Care Benefits Expense Pension Benefits Postretirement Health Care Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended (millions) Aug 1, Aug 2, Aug 1, Aug 2, Aug 1, Aug 2, Aug 1, Aug 2, Service cost $ 27 $ 28 $ 55 $ 56 $ 1 $ 1 $ 2 $ 2 Interest cost 39 37 77 75 1 — 1 1 Expected return on assets (65 ) (59 ) (130 ) (117 ) — — — — Amortization of losses 19 17 42 33 1 2 2 3 Amortization of prior service cost (3 ) (3 ) (6 ) (6 ) (5 ) (4 ) (9 ) (8 ) Settlement charges — — 2 — — — — — Total $ 17 $ 20 $ 40 $ 41 $ (2 ) $ (1 ) $ (4 ) $ (2 ) As a result of the restructuring initiatives discussed in Note 4, 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 , $8 million and $11 million of which was recognized during the three and six months ended August 1, 2015, respectively. 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 $1 million and $4 million for the three and six months ended August 1, 2015 , respectively, and pretax losses of $5 million and pretax income of $2 million for the three and six months ended August 2, 2014 , respectively. During the six months ended August 1, 2015 and August 2, 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 10. The settlement dates of these instruments are regularly renegotiated with the counterparty. Prepaid Forward Contracts on Target Common Stock (millions, except per share data) Number of Shares Contractual Price Paid per Share Contractual Fair Value Total Cash Investment August 1, 2015 0.4 $ 41.13 $ 36 $ 18 January 31, 2015 0.5 $ 41.11 $ 38 $ 21 August 2, 2014 0.7 $ 42.88 $ 40 $ 29 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Aug. 01, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (millions) Cash Flow Hedges Currency Translation Adjustment Pension and Other Benefits Total January 31, 2015 $ (22 ) $ (16 ) $ (561 ) $ (599 ) Other comprehensive income before reclassifications — (1 ) 99 98 Amounts reclassified from AOCI 2 (a) — 18 (b) 20 August 1, 2015 $ (20 ) $ (17 ) $ (444 ) $ (481 ) (a) Represents gains and losses on cash flow hedges, net of $1 million of taxes. (b) Represents amortization of pension and other benefit liabilities, net of $12 million of taxes. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Aug. 01, 2015 | |
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 Six Months Ended (millions) August 1, August 2, August 1, August 2, Sales $ 17,427 $ 16,957 $ 34,546 $ 33,614 Cost of sales 12,051 11,798 23,962 23,546 Gross margin 5,376 5,159 10,584 10,068 Selling, general and administrative expenses (a)(e) 3,475 3,473 6,883 6,817 Depreciation and amortization 551 537 1,090 1,049 Segment profit $ 1,350 $ 1,149 $ 2,611 $ 2,202 Restructuring costs (b)(e) (11 ) — (114 ) — Data Breach related costs (c)(e) (9 ) (111 ) (12 ) (129 ) Impairments (e) — (16 ) — (16 ) Card brand conversion costs (d)(e) — — — (13 ) Earnings from continuing operations before interest expense and income taxes 1,330 1,023 2,485 2,045 Net interest expense 148 433 305 585 Earnings from continuing operations before income taxes $ 1,182 $ 590 $ 2,180 $ 1,460 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 4 for more information on restructuring costs. (c) Refer to Note 8 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, impairments and card brand conversion costs equal consolidated SG&A expenses. Reconciliation of Segment Assets to Total Assets (millions) August 1, January 31, August 2, Segment assets $ 39,778 $ 39,569 $ 37,987 Assets of discontinued operations 553 1,775 6,398 Unallocated assets (a) 55 60 70 Total assets $ 40,386 $ 41,404 $ 44,455 (a) Represents the insurance receivable related to the Data Breach. |
Pharmacies and Clinics Transa24
Pharmacies and Clinics Transactions (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets Held for Sale Reclassified | The agreement includes the sale of inventory and other assets. These currently held for sale assets have been classified as follows. (millions) August 1, January 31, August 2, Inventory included in other current assets $ 464 $ 500 $ 479 Other current assets 13 — — Other noncurrent assets — 13 12 Total $ 477 $ 513 $ 491 |
Canada Exit (Tables)
Canada Exit (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement | As of May 2, 2015, all stores were closed. Loss on Discontinued Operations Three Months Ended Six Months Ended (millions) August 1, August 2, August 1, August 2, Sales $ — $ 449 $ — $ 842 Cost of sales — 367 — 686 SG&A expenses — 216 — 434 Depreciation and amortization — 70 — 137 Interest expense — 19 — 38 Pretax loss from operations — (223 ) — (453 ) Pretax exit costs (a) (80 ) — (113 ) — Income taxes 60 66 77 144 Loss on discontinued operations $ (20 ) $ (157 ) $ (36 ) $ (309 ) (a) For the three and six months ended August 1, 2015, the pretax exit costs related to our ongoing support of the liquidation process, other professional fees, and an increase to our accrual for the estimated probable losses related to claims that may be asserted against us, primarily under guarantees of certain leases. |
Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities | Recorded Assets and Liabilities Assets and Liabilities of Discontinued Operations (millions) August 1, January 31, August 2, Income tax benefit $ 234 $ 1,430 Inventory $ 510 Receivables from Canada Subsidiaries 319 326 Property and equipment, net 5,056 Receivables under the debtor-in-possession credit facility — 19 Other 832 Total assets $ 553 $ 1,775 Total assets $ 6,398 Capital lease obligations $ 1,240 Accrued liabilities $ 336 $ 296 Accounts payable and other liabilities 505 Total liabilities $ 336 $ 296 Total liabilities $ 1,745 |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | These costs were not included in our segment results. Restructuring Costs August 1, 2015 (millions) Three Months Ended Six Months Ended Severance $ 9 $ 108 Pension and other 2 6 Total $ 11 $ 114 |
Restructuring-Related Liabilities | Accruals for restructuring costs are included in other current liabilities. Restructuring-Related Liabilities (millions) Severance Pension and Other Total Restructuring liability as of January 31, 2015 $ — $ — $ — Charges during period 108 6 114 Paid or otherwise settled (94 ) (6 ) (100 ) Restructuring liability as of August 1, 2015 $ 14 $ — $ 14 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
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 August 1, January 31, August 2, Assets Cash and cash equivalents Short-term investments Level 1 $ 1,985 $ 1,520 $ 3 Other current assets Interest rate swaps (a) Level 2 25 — — Prepaid forward contracts Level 1 36 38 40 Beneficial interest asset Level 3 29 43 56 Other noncurrent assets Interest rate swaps (a) Level 2 16 65 51 Company-owned life insurance investments (b) Level 2 331 322 314 Beneficial interest asset Level 3 19 31 41 Liabilities Other current liabilities Interest rate swaps (a) Level 2 16 — — Other noncurrent liabilities Interest rate swaps (a) Level 2 — 24 31 (a) See Note 9 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 $783 million at August 1, 2015 , $773 million at January 31, 2015 and $806 million at August 2, 2014 . |
Fair Value Measurements, Significant Financial Instruments not Measured at Fair Value | Significant Financial Instruments not Measured at Fair Value (a) (millions) August 1, 2015 January 31, 2015 August 2, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Debt (b) $ 11,921 $ 13,365 $ 11,946 $ 14,089 $ 12,135 $ 13,553 (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 Long-Term D28
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
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 Six Months Ended (dollars in millions) August 1, August 2, August 1, August 2, Maximum daily amount outstanding during the period $ — $ 500 $ — $ 590 Average daily amount outstanding during the period — 148 — 214 Amount outstanding at period-end — 189 — 189 Weighted average interest rate — % 0.11 % — % 0.10 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Property, Plant and Equipment [Abstract] | |
Details of Impairment of Long-Lived Assets Held and Used by Asset | We recognized impairment losses during each of the periods presented, primarily resulting from discontinued projects, store closures, and completed or planned land sales. Impairments (a) Three Months Ended Six Months Ended (millions) August 1, August 2, August 1, August 2, Total segment impairments $ 33 $ 46 $ 40 $ 59 Unallocated impairments (b) — 16 — 16 Total impairments $ 33 $ 62 $ 40 $ 75 (a) Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Operations. (b) Represents impairments of undeveloped land. |
Data Breach (Tables)
Data Breach (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Data Breach Balance Sheet Rollforward | Expenses Incurred and Amounts Accrued Data Breach Balance Sheet Rollforward (millions) Liabilities Insurance Receivable Balance at February 1, 2014 $ 61 $ 44 Expenses incurred/insurance receivable recorded (a) 175 46 Payments made/received (54 ) (20 ) Balance at August 2, 2014 $ 182 $ 70 Balance at January 31, 2015 $ 171 $ 60 Expenses incurred/insurance receivable recorded (a) 12 — Payments made/received (15 ) (5 ) Balance at August 1, 2015 $ 168 $ 55 (a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as discussed below. |
Derivative Financial Instrume31
Derivative Financial Instruments (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
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 (millions) Three Months Ended Six Months Ended Type of Contract Classification of (Income)/Expense August 1, August 2, August 1, August 2, Interest rate swaps Net interest expense $ (9 ) $ (9 ) $ (18 ) $ (13 ) |
Share Repurchase (Tables)
Share Repurchase (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Equity [Abstract] | |
Share Repurchase | Neither ASR was accounted for as a derivative instrument. Share Repurchases Six Months Ended (millions, except per share data) August 1, 2015 (a) August 2, 2014 (b) Total number of shares purchased 15.2 0.6 Average price paid per share $ 81.41 $ 55.36 Total investment $ 1,240 $ 34 (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 11 provides the details of our positions in prepaid forward contracts. (b) All of the shares reacquired were delivered upon the noncash settlement of prepaid forward contracts which had an original cash investment of $34 million and an aggregate market value at their settlement dates of $35 million . |
Pension, Postretirement Healt33
Pension, Postretirement Health Care and Other Benefits (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Pension and Postretirement Health Care Benefits Expense | 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 Health Care Benefits Expense Pension Benefits Postretirement Health Care Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended (millions) Aug 1, Aug 2, Aug 1, Aug 2, Aug 1, Aug 2, Aug 1, Aug 2, Service cost $ 27 $ 28 $ 55 $ 56 $ 1 $ 1 $ 2 $ 2 Interest cost 39 37 77 75 1 — 1 1 Expected return on assets (65 ) (59 ) (130 ) (117 ) — — — — Amortization of losses 19 17 42 33 1 2 2 3 Amortization of prior service cost (3 ) (3 ) (6 ) (6 ) (5 ) (4 ) (9 ) (8 ) Settlement charges — — 2 — — — — — Total $ 17 $ 20 $ 40 $ 41 $ (2 ) $ (1 ) $ (4 ) $ (2 ) |
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 (millions, except per share data) Number of Shares Contractual Price Paid per Share Contractual Fair Value Total Cash Investment August 1, 2015 0.4 $ 41.13 $ 36 $ 18 January 31, 2015 0.5 $ 41.11 $ 38 $ 21 August 2, 2014 0.7 $ 42.88 $ 40 $ 29 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the changes in accumulated other comprehensive income (AOCI) by component | (millions) Cash Flow Hedges Currency Translation Adjustment Pension and Other Benefits Total January 31, 2015 $ (22 ) $ (16 ) $ (561 ) $ (599 ) Other comprehensive income before reclassifications — (1 ) 99 98 Amounts reclassified from AOCI 2 (a) — 18 (b) 20 August 1, 2015 $ (20 ) $ (17 ) $ (444 ) $ (481 ) (a) Represents gains and losses on cash flow hedges, net of $1 million of taxes. (b) Represents amortization of pension and other benefit liabilities, net of $12 million of taxes. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
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 Six Months Ended (millions) August 1, August 2, August 1, August 2, Sales $ 17,427 $ 16,957 $ 34,546 $ 33,614 Cost of sales 12,051 11,798 23,962 23,546 Gross margin 5,376 5,159 10,584 10,068 Selling, general and administrative expenses (a)(e) 3,475 3,473 6,883 6,817 Depreciation and amortization 551 537 1,090 1,049 Segment profit $ 1,350 $ 1,149 $ 2,611 $ 2,202 Restructuring costs (b)(e) (11 ) — (114 ) — Data Breach related costs (c)(e) (9 ) (111 ) (12 ) (129 ) Impairments (e) — (16 ) — (16 ) Card brand conversion costs (d)(e) — — — (13 ) Earnings from continuing operations before interest expense and income taxes 1,330 1,023 2,485 2,045 Net interest expense 148 433 305 585 Earnings from continuing operations before income taxes $ 1,182 $ 590 $ 2,180 $ 1,460 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 4 for more information on restructuring costs. (c) Refer to Note 8 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, impairments and card brand conversion costs equal consolidated SG&A expenses. Reconciliation of Segment Assets to Total Assets (millions) August 1, January 31, August 2, Segment assets $ 39,778 $ 39,569 $ 37,987 Assets of discontinued operations 553 1,775 6,398 Unallocated assets (a) 55 60 70 Total assets $ 40,386 $ 41,404 $ 44,455 (a) Represents the insurance receivable related to the Data Breach. |
Pharmacies and Clinics Transa36
Pharmacies and Clinics Transactions (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Jun. 12, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Inventory included in other current assets | $ (8,269) | $ (8,290) | $ (7,929) | |
Other current assets | (2,250) | (2,254) | (2,166) | |
Other noncurrent assets | (989) | (923) | (1,064) | |
Assets | (40,386) | (41,404) | (44,455) | |
Pharmacy and Clinic Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration | $ 1,900 | |||
Restatement Adjustment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets | 477 | 513 | 491 | |
Inventory Reclass to Other Assets | Restatement Adjustment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Inventory included in other current assets | 464 | 500 | 479 | |
Other Current Assets Reclass From Inventory | Restatement Adjustment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other current assets | (500) | (479) | ||
Other Assets Reclass to Other Noncurrent Assets | Restatement Adjustment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other current assets | 13 | 0 | 0 | |
Other Noncurrent Assets Reclass From Other Assets | Restatement Adjustment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other noncurrent assets | $ 0 | 13 | 12 | |
Other Assets Reclass to Other Noncurrent Assets | $ 6 | $ 6 |
Canada Exit (Details)
Canada Exit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | ||
Loss on Discontinued Operations | ||||||
Loss on discontinued operations | $ (20) | $ (157) | $ (36) | $ (309) | ||
Canada Exit | ||||||
Loss on Discontinued Operations | ||||||
Sales | 0 | 449 | 0 | 842 | ||
Cost of sales | 0 | 367 | 0 | 686 | ||
SG&A expenses | 0 | 216 | 0 | 434 | ||
Depreciation and amortization | 0 | 70 | 0 | 137 | ||
Interest expense | 0 | 19 | 0 | 38 | ||
Pretax loss from operations | 0 | (223) | 0 | (453) | ||
Pretax exit costs | [1] | (80) | 0 | (113) | 0 | |
Income taxes | 60 | 66 | 77 | 144 | ||
Loss on discontinued operations | (20) | (157) | (36) | (309) | ||
Assets and Liabilities of Discontinued Operations | ||||||
Inventory | 510 | 510 | ||||
Income tax benefit | 234 | 234 | $ 1,430 | |||
Property and equipment, net | 5,056 | 5,056 | ||||
Receivables under the debtor-in-possession credit facility | 0 | 0 | 19 | |||
Receivables from Canada Subsidiaries | 319 | 319 | 326 | |||
Other | 832 | 832 | ||||
Total assets | 553 | 6,398 | 553 | 6,398 | 1,775 | |
Capital lease obligations | 1,240 | 1,240 | ||||
Accrued liabilities | 336 | 336 | 296 | |||
Accounts payable and other liabilities | 505 | 505 | ||||
Total liabilities | $ 336 | $ 1,745 | $ 336 | $ 1,745 | $ 296 | |
[1] | he pretax exit costs related to our ongoing support of the liquidation process, other professional fees, and an increase to our accrual for the estimated probable losses related to claims that may be asserted against us, primarily under guarantees of certain leases. |
Canada Exit (Details 2)
Canada Exit (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 01, 2015 | Jan. 31, 2015 | |
Canada Exit | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Tax benefit in discontinued operations | $ 60 | $ 1,627 |
Restructuring Initiatives (Cost
Restructuring Initiatives (Costs) (Details) - Aug. 01, 2015 - 2015 Restructuring - USD ($) $ in Millions | Total | Total |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 114 | |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 108 | |
Pension and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 6 | |
SG&A | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 11 | 114 |
SG&A | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 9 | 108 |
SG&A | Pension and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 2 | $ 6 |
Restructuring Initiatives (Liab
Restructuring Initiatives (Liabilities) (Details) - Aug. 01, 2015 - 2015 Restructuring - USD ($) $ in Millions | Total |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of | $ 0 |
Charges during period | 114 |
Paid or otherwise settled | (100) |
Restructuring liability as of | 14 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of | 0 |
Charges during period | 108 |
Paid or otherwise settled | (94) |
Restructuring liability as of | 14 |
Pension and Other | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of | 0 |
Charges during period | 6 |
Paid or otherwise settled | (6) |
Restructuring liability as of | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Financial assets and liabilities measured at fair value on a recurring basis | ||||
Other current assets | $ 2,250 | $ 2,254 | $ 2,166 | |
Other noncurrent assets | 989 | 923 | 1,064 | |
Other noncurrent liabilities | 1,353 | 1,452 | 1,495 | |
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 | 783 | 773 | 806 | |
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 | 36 | 38 | 40 | |
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 | 1,985 | 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 | [1] | 25 | 0 | 0 |
Other noncurrent assets | [1] | 16 | 65 | 51 |
Other current liabilities | [1] | 16 | 0 | 0 |
Other noncurrent liabilities | [1] | 0 | 24 | 31 |
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 | [2] | 331 | 322 | 314 |
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 | 29 | 43 | 56 | |
Other noncurrent assets | $ 19 | $ 31 | $ 41 | |
[1] | See Note 9 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 (Deta42
Fair Value Measurements (Details 2) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Carrying Amount | ||||
Financial Instruments, Balance Sheet Groupings | ||||
Debt | [1],[2] | $ 11,921 | $ 11,946 | $ 12,135 |
Fair Value | ||||
Financial Instruments, Balance Sheet Groupings | ||||
Debt | [1],[2] | $ 13,365 | $ 14,089 | $ 13,553 |
[1] | The carrying amount and estimated fair value of debt exclude unamortized swap valuation adjustments and capital lease obligations. | |||
[2] | 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. |
Notes Payable and Long-Term D43
Notes Payable and Long-Term Debt (Details) - Commercial paper - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Debt Instrument Line Items | ||||
Maximum daily amount outstanding during the period | $ 0 | $ 500 | $ 0 | $ 590 |
Average daily amount outstanding during the period | 0 | 148 | 0 | 214 |
Amount outstanding at period-end | $ 0 | $ 189 | $ 0 | $ 189 |
Weighted average interest rate | 0.00% | 0.11% | 0.00% | 0.10% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | ||
Property, Plant and Equipment [Line Items] | |||||
Total impairments | [1] | $ 33 | $ 62 | $ 40 | $ 75 |
Total segment impairments | |||||
Property, Plant and Equipment [Line Items] | |||||
Total impairments | [1] | 33 | 46 | 40 | 59 |
Unallocated impairments | |||||
Property, Plant and Equipment [Line Items] | |||||
Total impairments | [1],[2],[3] | $ 0 | $ 16 | $ 0 | $ 16 |
[1] | Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Operations. | ||||
[2] | Represents impairments of undeveloped land. | ||||
[3] | The sum of segment SG&A expenses, restructuring costs, Data Breach related costs, impairments and card brand conversion costs equal consolidated SG&A expenses. |
Data Breach (Details)
Data Breach (Details) account in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 21 Months Ended | ||||
Aug. 31, 2015USD ($) | Aug. 01, 2015USD ($)credit_card_network | Aug. 02, 2014USD ($) | Feb. 01, 2014USD ($)account | Aug. 01, 2015USD ($)action | Aug. 02, 2014USD ($) | Aug. 01, 2015USD ($) | ||
Insurance Settlements Receivable [Roll Forward] | ||||||||
Expenses incurred | [1],[2] | $ 9,000,000 | $ 111,000,000 | $ 12,000,000 | $ 129,000,000 | |||
Data breach | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of credit and debit card accounts stolen | account | 40 | |||||||
Number of individuals whose personal information was stolen | account | 70 | |||||||
Number of major credit card networks | credit_card_network | 4 | |||||||
Number of actions filed seeking damages, more than | action | 100 | |||||||
Payment agreement | $ 10,000,000 | |||||||
Liabilities [Roll Forward] | ||||||||
Balance at | $ 168,000,000 | $ 171,000,000 | 61,000,000 | |||||
Expenses incurred/insurance receivable recorded | 9,000,000 | 148,000,000 | 12,000,000 | 175,000,000 | ||||
Payments made/received | (15,000,000) | (54,000,000) | ||||||
Balance at | 168,000,000 | 182,000,000 | $ 61,000,000 | 168,000,000 | 182,000,000 | $ 168,000,000 | ||
Insurance Settlements Receivable [Roll Forward] | ||||||||
Balance at | 55,000,000 | 60,000,000 | 44,000,000 | |||||
Expenses incurred/insurance receivable recorded | 38,000,000 | 0 | 46,000,000 | |||||
Payments made/received | (5,000,000) | (20,000,000) | ||||||
Balance at | $ 55,000,000 | $ 70,000,000 | $ 44,000,000 | 55,000,000 | $ 70,000,000 | 55,000,000 | ||
Expenses incurred | 264,000,000 | |||||||
Expected insurance recoveries | 90,000,000 | |||||||
Insurance Recoveries | 35,000,000 | |||||||
Net expense | $ 174,000,000 | |||||||
Network security insurance coverage | 100,000,000 | |||||||
Network security insurance coverage, deductible | 10,000,000 | |||||||
Network security insurance coverage, sublimit | $ 50,000,000 | |||||||
Subsequent event | Data breach | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency Settlement Agreement Amount | $ 67,000,000 | |||||||
[1] | Refer to Note 8 for more information on Data Breach related costs. | |||||||
[2] | The sum of segment SG&A expenses, restructuring costs, Data Breach related costs, impairments and card brand conversion costs equal consolidated SG&A expenses. |
Derivative Financial Instrume46
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015USD ($)swap | Aug. 02, 2014USD ($)swap | Aug. 01, 2015USD ($)swap | Aug. 02, 2014USD ($)swap | Jan. 31, 2015USD ($) | |
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | |||||
Amount of ineffectiveness recognized | $ 0 | $ 0 | $ 0 | $ 0 | |
Derivative Contracts - Effect on Results of Operations | |||||
Unamortized hedged debt valuation gains from terminated and de-designated interest rate swaps | 25,000,000 | 43,000,000 | 25,000,000 | 43,000,000 | $ 34,000,000 |
Interest rate swaps | |||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | |||||
Derivative, notional amount | 1,250,000,000 | 1,250,000,000 | 1,250,000,000 | 1,250,000,000 | |
Derivative Contracts - Effect on Results of Operations | |||||
Net interest expense | $ (9,000,000) | $ (9,000,000) | $ (18,000,000) | $ (13,000,000) | |
Designated as Hedging Instrument | |||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | |||||
Number of interest rate swaps | swap | 3 | 3 | 3 | 3 |
Share Repurchase (Details)
Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | 43 Months Ended | ||||||
May. 03, 2014 | May. 28, 2015 | Aug. 01, 2015 | Jul. 31, 2015 | Aug. 02, 2014 | [2] | Jan. 31, 2015 | Aug. 01, 2015 | Jun. 30, 2015 | May. 02, 2015 | ||
Share Repurchase Information | |||||||||||
Total number of shares purchased | 15.2 | [1] | 0.6 | 65.1 | |||||||
Average price paid per share | $ 81.41 | [1] | $ 55.36 | $ 67.19 | |||||||
Total investment | $ 1,240 | [1] | $ 34 | $ 4,400 | |||||||
Shares delivered upon noncash settlement of prepaid contracts | 0.1 | ||||||||||
Original cash investment of shares delivered upon noncash settlement | $ 1,243 | $ 46 | |||||||||
Repurchase of Share Repurchase Program 2015 | |||||||||||
Share Repurchase Information | |||||||||||
Stock repurchase program, authorized amount | 10,000 | 10,000 | $ 5,000 | ||||||||
Q2 ASR | |||||||||||
Share Repurchase Information | |||||||||||
Shares received | 3.8 | ||||||||||
Price paid per share | $ 82.67 | ||||||||||
Q2 ASR | Minimum | |||||||||||
Share Repurchase Information | |||||||||||
Stock repurchase program, authorized amount | 250 | 250 | |||||||||
Q2 ASR | Maximum | |||||||||||
Share Repurchase Information | |||||||||||
Stock repurchase program, authorized amount | 350 | $ 350 | |||||||||
Q2 ASR | June 1, 2015 to July 31, 2015 | |||||||||||
Share Repurchase Information | |||||||||||
Cash received | $ 314 | ||||||||||
Q1 ASR | |||||||||||
Share Repurchase Information | |||||||||||
Shares received | 3.3 | ||||||||||
Price paid per share | $ 80.74 | ||||||||||
Q1 ASR | Minimum | |||||||||||
Share Repurchase Information | |||||||||||
Stock repurchase program, authorized amount | $ 200 | ||||||||||
Q1 ASR | Maximum | |||||||||||
Share Repurchase Information | |||||||||||
Stock repurchase program, authorized amount | $ 300 | ||||||||||
Q1 ASR | February 1, 2015 to May 28, 2015 | |||||||||||
Share Repurchase Information | |||||||||||
Cash received | $ 265 | ||||||||||
Cash Investment | |||||||||||
Share Repurchase Information | |||||||||||
Original cash investment of shares delivered upon noncash settlement | $ 34 | 3 | |||||||||
Prepaid Forward Contracts Market Value | |||||||||||
Share Repurchase Information | |||||||||||
Aggregate market value | $ 34.7 | $ 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 11 provides the details of our positions in prepaid forward contracts. | ||||||||||
[2] | All of the shares reacquired were delivered upon the noncash settlement of prepaid forward contracts which had an original cash investment of $34 million and an aggregate market value at their settlement dates of $35 million. |
Pension, Postretirement Healt48
Pension, Postretirement Health Care and Other Benefits (Details) - USD ($) $ in Millions | Mar. 09, 2015 | Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 30, 2016 |
Pension Benefits | ||||||
Net Pension and Postretirement Health Care Benefits Expense | ||||||
Service cost | $ 27 | $ 28 | $ 55 | $ 56 | ||
Interest cost | 39 | 37 | 77 | 75 | ||
Expected return on assets | (65) | (59) | (130) | (117) | ||
Amortization of losses | 19 | 17 | 42 | 33 | ||
Amortization of prior service cost | (3) | (3) | (6) | (6) | ||
Settlement charges | 0 | 0 | 2 | 0 | ||
Total | 17 | 20 | 40 | 41 | ||
Remeasurement reduction to projected benefit obligation | $ 208 | |||||
Remeasurement reduction to plan assets | $ 47 | |||||
Increase in discount rate used | 0.41% | |||||
Plan assets | 3,725 | 3,725 | ||||
Projected benefit obligation | 3,604 | 3,604 | ||||
Reduction to pension expense | 8 | 11 | ||||
Pension Benefits | Scenario, Forecast | ||||||
Net Pension and Postretirement Health Care Benefits Expense | ||||||
Reduction to pension expense | $ 26 | |||||
Postretirement Health Care Benefits | ||||||
Net Pension and Postretirement Health Care Benefits Expense | ||||||
Service cost | 1 | 1 | 2 | 2 | ||
Interest cost | 1 | 0 | 1 | 1 | ||
Expected return on assets | 0 | 0 | 0 | 0 | ||
Amortization of losses | 1 | 2 | 2 | 3 | ||
Amortization of prior service cost | (5) | (4) | (9) | (8) | ||
Settlement charges | 0 | 0 | 0 | 0 | ||
Total | $ (2) | $ (1) | $ (4) | $ (2) |
Pension, Postretirement Healt49
Pension, Postretirement Health Care and Other Benefits (Details 2) - Prepaid forward contracts - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | |
Prepaid Forward Contracts on Target Common Stock | |||||
Change in fair value for contracts indexed to Target common stock, recognized in earnings, pretax | $ 1,000,000 | $ 5,000,000 | $ 4,000,000 | $ 2,000,000 | |
Payments for derivative instrument, investing activities | $ 0 | $ 0 | |||
Number of Shares | 0.4 | 0.7 | 0.4 | 0.7 | 0.5 |
Contractual Price Paid per Share | $ 41.13 | $ 42.88 | $ 41.11 | ||
Contractual Fair Value | $ 36,000,000 | $ 40,000,000 | $ 36,000,000 | $ 40,000,000 | $ 38,000,000 |
Total Cash Investment | $ 18,000,000 | $ 29,000,000 | $ 18,000,000 | $ 29,000,000 | $ 21,000,000 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ (599) | ||||
Other comprehensive income before reclassifications | 98 | ||||
Amounts reclassified from AOCI | 20 | ||||
Balance at end of period | $ (481) | (481) | |||
Income tax expense (benefit) | 409 | $ 199 | 756 | $ 498 | |
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (22) | ||||
Other comprehensive income before reclassifications | 0 | ||||
Amounts reclassified from AOCI | [1] | 2 | |||
Balance at end of period | (20) | (20) | |||
Cash Flow Hedges | Amount reclassified from other comprehensive income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Income tax expense (benefit) | 1 | ||||
Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (16) | ||||
Other comprehensive income before reclassifications | (1) | ||||
Amounts reclassified from AOCI | 0 | ||||
Balance at end of period | (17) | (17) | |||
Pension and Other Benefits | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (561) | ||||
Other comprehensive income before reclassifications | 99 | ||||
Amounts reclassified from AOCI | [2] | 18 | |||
Balance at end of period | $ (444) | (444) | |||
Pension and Other Benefits | Amount reclassified from other comprehensive income | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Income tax expense (benefit) | $ 12 | ||||
[1] | Represents gains and losses on cash flow hedges, net of $1 million of taxes. | ||||
[2] | Represents amortization of pension and other benefit liabilities, net of $12 million of taxes. |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 17,427 | $ 16,957 | $ 34,546 | $ 33,614 | |
Cost of sales | 12,051 | 11,798 | 23,962 | 23,546 | |
Gross margin | 5,376 | 5,159 | 10,584 | 10,068 | |
Selling, general and administrative expenses | [1],[2] | 3,475 | 3,473 | 6,883 | 6,817 |
Depreciation and amortization | 551 | 537 | 1,090 | 1,049 | |
Segment profit | 1,350 | 1,149 | 2,611 | 2,202 | |
Restructuring costs | [2],[3] | (11) | 0 | (114) | 0 |
Data Breach related costs | [2],[4] | (9) | (111) | (12) | (129) |
Impairments | [5] | (33) | (62) | (40) | (75) |
Card brand conversion costs | [2],[6] | 0 | 0 | 0 | (13) |
Earnings from continuing operations before interest expense and income taxes | 1,330 | 1,023 | 2,485 | 2,045 | |
Net interest expense | 148 | 433 | 305 | 585 | |
Earnings from continuing operations before income taxes | 1,182 | 590 | 2,180 | 1,460 | |
Unallocated impairments | |||||
Segment Reporting Information [Line Items] | |||||
Impairments | [2],[5],[7] | $ 0 | $ (16) | $ 0 | $ (16) |
[1] | (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. | ||||
[2] | The sum of segment SG&A expenses, restructuring costs, Data Breach related costs, impairments and card brand conversion costs equal consolidated SG&A expenses. | ||||
[3] | Refer to Note 4 for more information on restructuring costs. | ||||
[4] | Refer to Note 8 for more information on Data Breach related costs. | ||||
[5] | Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Operations. | ||||
[6] | Expense related to converting co-branded card program to MasterCard. | ||||
[7] | Represents impairments of undeveloped land. |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Segment Reporting Information 2 [Line Items] | ||||
Total assets | $ 40,386 | $ 41,404 | $ 44,455 | |
Segment assets | ||||
Segment Reporting Information 2 [Line Items] | ||||
Total assets | 39,778 | 39,569 | 37,987 | |
Assets of discontinued operations | ||||
Segment Reporting Information 2 [Line Items] | ||||
Total assets | 553 | 1,775 | 6,398 | |
Unallocated assets | ||||
Segment Reporting Information 2 [Line Items] | ||||
Total assets | [1] | $ 55 | $ 60 | $ 70 |
[1] | Represents the insurance receivable related to the Data Breach. |
Uncategorized Items - tgt-20150
Label | Element | Value |
Common Stock [Member] | ||
Common Stock, Shares, Issued | us-gaap_CommonStockSharesIssued | 632.9 |