Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2015 | Nov. 19, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | TARGET CORP | |
Entity Central Index Key | 27,419 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 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 | 616,051,610 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 17,613 | $ 17,254 | $ 52,159 | $ 50,868 |
Cost of sales | 12,440 | 12,171 | 36,402 | 35,716 |
Selling, general and administrative expenses | 3,736 | 3,644 | 10,745 | 10,619 |
Depreciation and amortization | 561 | 535 | 1,651 | 1,584 |
Earnings from continuing operations before interest expense and income taxes | 876 | 904 | 3,361 | 2,949 |
Net interest expense | 151 | 146 | 455 | 730 |
Earnings from continuing operations before income taxes | 725 | 758 | 2,906 | 2,219 |
Provision for income taxes | 249 | 232 | 1,006 | 730 |
Net earnings from continuing operations | 476 | 526 | 1,900 | 1,489 |
Discontinued operations, net of tax | 73 | (174) | 37 | (485) |
Net earnings | $ 549 | $ 352 | $ 1,937 | $ 1,004 |
Basic earnings / (loss) per share | ||||
Continuing operations (in dollars per share) | $ 0.76 | $ 0.83 | $ 3 | $ 2.35 |
Discontinued operations (in dollars per share) | 0.12 | (0.28) | 0.06 | (0.76) |
Net earnings per share (in dollars per share) | 0.88 | 0.55 | 3.06 | 1.58 |
Diluted earnings / (loss) per share | ||||
Continuing operations (in dollars per share) | 0.76 | 0.82 | 2.98 | 2.33 |
Discontinued operations (in dollars per share) | 0.11 | (0.27) | 0.06 | (0.76) |
Net earnings per share (in dollars per share) | $ 0.87 | $ 0.55 | $ 3.03 | $ 1.57 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 623.7 | 634 | 633.5 | 633.6 |
Dilutive impact of share-based awards (in shares) | 5.1 | 5.6 | 5.2 | 5.1 |
Diluted (in shares) | 628.8 | 639.6 | 638.7 | 638.7 |
Antidilutive shares (in shares) | 0 | 2.3 | 0 | 4.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 549 | $ 352 | $ 1,937 | $ 1,004 |
Other comprehensive income, net of tax | ||||
Pension and other benefit liabilities, net of taxes of $8, $4, $84 and $12 | 13 | 7 | 130 | 21 |
Currency translation adjustment and cash flow hedges, net of taxes of $1, $1, $2 and $2 | (1) | (138) | 0 | (53) |
Other comprehensive income / (loss) | 12 | (131) | 130 | (32) |
Comprehensive income | $ 561 | $ 221 | $ 2,067 | $ 972 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other benefit liabilities, taxes | $ 8 | $ 4 | $ 84 | $ 12 |
Currency translation adjustment and cash flow hedges, taxes | $ 1 | $ 1 | $ 2 | $ 2 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Assets | |||
Cash and cash equivalents, including short term investments of $1,154, $1,520 and $4 | $ 1,977 | $ 2,210 | $ 718 |
Inventory | 10,374 | 8,283 | 9,957 |
Assets of discontinued operations | 451 | 1,333 | 808 |
Other current assets | 2,402 | 2,261 | 2,355 |
Total current assets | 15,204 | 14,087 | 13,838 |
Property and equipment | |||
Land | 6,118 | 6,127 | 6,111 |
Buildings and improvements | 26,912 | 26,613 | 26,439 |
Fixtures and equipment | 5,283 | 5,329 | 5,247 |
Computer hardware and software | 2,652 | 2,552 | 2,437 |
Construction-in-progress | 428 | 424 | 440 |
Accumulated depreciation | (15,921) | (15,093) | (14,641) |
Property and equipment, net | 25,472 | 25,952 | 26,033 |
Noncurrent assets of discontinued operations | 42 | 442 | 5,540 |
Other noncurrent assets | 978 | 923 | 1,050 |
Total assets | 41,696 | 41,404 | 46,461 |
Liabilities and shareholders’ investment | |||
Accounts payable | 8,904 | 7,759 | 8,839 |
Accrued and other current liabilities | 3,868 | 3,783 | 3,697 |
Current portion of long-term debt and other borrowings | 825 | 91 | 483 |
Liabilities of discontinued operations | 261 | 103 | 506 |
Total current liabilities | 13,858 | 11,736 | 13,525 |
Long-term debt and other borrowings | 11,951 | 12,705 | 12,623 |
Deferred income taxes | 1,316 | 1,321 | 1,195 |
Noncurrent liabilities of discontinued operations | 36 | 193 | 1,292 |
Other noncurrent liabilities | 1,279 | 1,452 | 1,453 |
Total noncurrent liabilities | 14,582 | 15,671 | 16,563 |
Shareholders’ investment | |||
Common stock | 52 | 53 | 53 |
Additional paid-in capital | 5,314 | 4,899 | 4,612 |
Retained earnings | 8,359 | 9,644 | 12,631 |
Accumulated other comprehensive loss | |||
Pension and other benefit liabilities | (431) | (561) | (401) |
Currency translation adjustment and cash flow hedges | (38) | (38) | (522) |
Total shareholders’ investment | 13,256 | 13,997 | 16,373 |
Total liabilities and shareholders’ investment | $ 41,696 | $ 41,404 | $ 46,461 |
Consolidated Statements of Fin6
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Statement of Financial Position [Abstract] | |||
Cash and cash equivalents, short-term investments | $ 1,154 | $ 1,520 | $ 4 |
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) | 618,604,168 | 640,213,987 | 634,378,337 |
Common Stock, shares outstanding (in shares) | 618,604,168 | 640,213,987 | 634,378,337 |
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 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | Jan. 31, 2015 | ||||
Operating activities | ||||||||
Net earnings | $ 549 | $ 352 | $ 1,937 | $ 1,004 | $ (1,636) | |||
Earnings / (losses) from discontinued operations, net of tax | 73 | (174) | 37 | (485) | ||||
Net earnings from continuing operations | 476 | 526 | 1,900 | 1,489 | ||||
Adjustments to reconcile net earnings to cash provided by operations: | ||||||||
Depreciation and amortization | 561 | 535 | 1,651 | 1,584 | ||||
Share-based compensation expense | 84 | 61 | ||||||
Deferred income taxes | (111) | (213) | ||||||
Loss on debt extinguishment | 0 | 285 | ||||||
Noncash (gains) / losses and other, net | (25) | (33) | ||||||
Changes in operating accounts | ||||||||
Inventory | (2,096) | (2,186) | ||||||
Other assets | 95 | 92 | ||||||
Accounts payable and accrued liabilities | 1,458 | 1,520 | ||||||
Cash provided by operating activities—continuing operations | 2,956 | 2,599 | ||||||
Cash provided by / (required for) operating activities—discontinued operations | 804 | (549) | ||||||
Cash provided by operations | 3,760 | 2,050 | ||||||
Investing activities | ||||||||
Expenditures for property and equipment | (1,129) | (1,362) | ||||||
Proceeds from disposal of property and equipment | 21 | 84 | ||||||
Proceeds from sale of business | 8 | 0 | ||||||
Cash paid for acquisitions, net of cash assumed | 0 | (18) | ||||||
Other investments | 12 | 88 | ||||||
Cash required for investing activities—continuing operations | (1,088) | (1,208) | ||||||
Cash provided by / (required for) investing activities—discontinued operations | 19 | (208) | ||||||
Cash required for investing activities | (1,069) | (1,416) | ||||||
Financing activities | ||||||||
Change in commercial paper, net | 0 | 305 | ||||||
Additions to long-term debt | 0 | 1,993 | ||||||
Reductions of long-term debt | (72) | (2,062) | ||||||
Dividends paid | (1,017) | (874) | ||||||
Repurchase of stock | (2,179) | 0 | ||||||
Stock option exercises and related tax benefit | 344 | 88 | ||||||
Cash required for financing activities | (2,924) | (550) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 1 | ||||||
Net (decrease) / increase in cash and cash equivalents | (233) | 85 | ||||||
Cash and cash equivalents at beginning of period | 2,210 | 695 | [1] | 695 | [1] | |||
Cash and cash equivalents at end of period | $ 1,977 | $ 780 | [2] | $ 1,977 | $ 780 | [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 $62 million |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Nov. 01, 2014 | Feb. 01, 2014 |
Statement of Cash Flows [Abstract] | ||
Cash of discontinued operations | $ 62 | $ 25 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2015 | Nov. 01, 2014 | Jan. 31, 2015 | |
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance (in shares) | 640,213,987 | |||
Beginning balance | $ 13,997 | $ 16,231 | $ 16,231 | |
Net earnings | $ 549 | 1,937 | 1,004 | (1,636) |
Other comprehensive income | 12 | 130 | (32) | 292 |
Dividends declared | (1,039) | (1,273) | ||
Repurchase of stock | (2,185) | (46) | ||
Stock options and awards | 416 | 429 | ||
Ending balance | $ 13,256 | $ 13,256 | $ 16,373 | $ 13,997 |
Ending balance (in shares) | 618,604,168 | 618,604,168 | 634,378,337 | 640,213,987 |
Common Stock | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance (in shares) | 640,200,000 | 632,900,000 | 632,900,000 | |
Beginning balance | $ 53 | $ 53 | $ 53 | |
Repurchase of stock (in shares) | (27,300,000) | (800,000) | ||
Repurchase of stock | $ (2) | |||
Stock options and awards (in shares) | 5,700,000 | 8,100,000 | ||
Stock options and awards | $ 1 | |||
Ending balance | $ 52 | $ 52 | $ 53 | |
Ending balance (in shares) | 618,600,000 | 618,600,000 | 640,200,000 | |
Additional Paid-in Capital | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | $ 4,899 | 4,470 | $ 4,470 | |
Stock options and awards | 415 | 429 | ||
Ending balance | $ 5,314 | 5,314 | 4,899 | |
Retained Earnings | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | 9,644 | 12,599 | 12,599 | |
Net earnings | 1,937 | (1,636) | ||
Dividends declared | (1,039) | (1,273) | ||
Repurchase of stock | (2,183) | (46) | ||
Ending balance | 8,359 | 8,359 | 9,644 | |
Accumulated Other Comprehensive Income/(Loss) | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | (599) | $ (891) | (891) | |
Other comprehensive income | 130 | 292 | ||
Ending balance | $ (469) | $ (469) | $ (599) |
Consolidated Statements of Sh10
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | Jan. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 1.64 | $ 1.47 | $ 1.99 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Oct. 31, 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 Transaction | 9 Months Ended |
Oct. 31, 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) October 31, January 31, November 1, Inventory included in other current assets $ 456 $ 506 (a) $ 507 Other current assets 15 3 (a) 3 Other noncurrent assets — 12 (a) 12 Total $ 471 $ 521 $ 522 (a) Amounts have been updated to be comparable with the current period. 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 through the CCAA process. Discontinued Operations Three Months Ended Nine Months Ended (millions) October 31, November 1, October 31, November 1, Sales $ — $ 479 $ — $ 1,321 Cost of sales — 386 — 1,072 SG&A expenses — 250 — 685 Depreciation and amortization — 70 — 207 Interest expense — 19 — 57 Pretax loss from operations — (246 ) — (700 ) Pretax exit costs (a) (2 ) — (115 ) — Income taxes 75 72 152 215 Earnings / (losses) from discontinued operations $ 73 $ (174 ) $ 37 $ (485 ) (a) For the three and nine months ended October 31, 2015, pretax exit costs related to our ongoing support of the liquidation process and other professional fees. For the nine months ended October 31, 2015, pretax exits costs also included 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) October 31, January 31, November 1, Income tax benefit $ 181 $ 1,430 Inventory $ 603 Receivables from Canada Subsidiaries 312 326 Property and equipment, net 4,846 Receivables under the debtor-in-possession credit facility — 19 Other 899 Total assets $ 493 $ 1,775 Total assets $ 6,348 Capital lease obligations $ 1,198 Accrued liabilities $ 297 $ 296 Accounts payable and other liabilities 600 Total liabilities $ 297 $ 296 Total liabilities $ 1,798 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. On November 23, 2015, we reached a settlement with an entity that controls guaranteed leases representing approximately 30 percent of the recorded accrual. Under the settlement terms, this entity has subrogated to us their claims against the Canada Subsidiaries. The settlement amount is materially consistent with our previously recorded accrual. Income Taxes During the three and nine months ended October 31, 2015, we recognized net tax benefits of $75 million and $152 million , respectively, in discontinued operations, which primarily relate to our pretax exit costs and change in the estimated tax benefit from our investment losses 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 | 9 Months Ended |
Oct. 31, 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) October 31, January 31, November 1, Inventory included in other current assets $ 456 $ 506 (a) $ 507 Other current assets 15 3 (a) 3 Other noncurrent assets — 12 (a) 12 Total $ 471 $ 521 $ 522 (a) Amounts have been updated to be comparable with the current period. 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 through the CCAA process. Discontinued Operations Three Months Ended Nine Months Ended (millions) October 31, November 1, October 31, November 1, Sales $ — $ 479 $ — $ 1,321 Cost of sales — 386 — 1,072 SG&A expenses — 250 — 685 Depreciation and amortization — 70 — 207 Interest expense — 19 — 57 Pretax loss from operations — (246 ) — (700 ) Pretax exit costs (a) (2 ) — (115 ) — Income taxes 75 72 152 215 Earnings / (losses) from discontinued operations $ 73 $ (174 ) $ 37 $ (485 ) (a) For the three and nine months ended October 31, 2015, pretax exit costs related to our ongoing support of the liquidation process and other professional fees. For the nine months ended October 31, 2015, pretax exits costs also included 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) October 31, January 31, November 1, Income tax benefit $ 181 $ 1,430 Inventory $ 603 Receivables from Canada Subsidiaries 312 326 Property and equipment, net 4,846 Receivables under the debtor-in-possession credit facility — 19 Other 899 Total assets $ 493 $ 1,775 Total assets $ 6,348 Capital lease obligations $ 1,198 Accrued liabilities $ 297 $ 296 Accounts payable and other liabilities 600 Total liabilities $ 297 $ 296 Total liabilities $ 1,798 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. On November 23, 2015, we reached a settlement with an entity that controls guaranteed leases representing approximately 30 percent of the recorded accrual. Under the settlement terms, this entity has subrogated to us their claims against the Canada Subsidiaries. The settlement amount is materially consistent with our previously recorded accrual. Income Taxes During the three and nine months ended October 31, 2015, we recognized net tax benefits of $75 million and $152 million , respectively, in discontinued operations, which primarily relate to our pretax exit costs and change in the estimated tax benefit from our investment losses 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 | 9 Months Ended |
Oct. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Initiatives | Restructuring Initiatives In 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 $21 million and $135 million of severance and other benefits-related charges within selling, general and administrative expenses (SG&A) during the three and nine months ended October 31, 2015, respectively. The vast majority of these expenses require cash expenditures. These costs were not included in our segment results. Restructuring Costs October 31, 2015 (millions) Three Months Ended Nine Months Ended Severance $ 19 $ 127 Pension and other 2 8 Total $ 21 $ 135 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 127 8 135 Paid or otherwise settled (113 ) (8 ) (121 ) Restructuring liability as of October 31, 2015 $ 14 $ — $ 14 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 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 October 31, January 31, November 1, Assets Cash and cash equivalents Short-term investments Level 1 $ 1,154 $ 1,520 $ 4 Other current assets Interest rate swaps (a) Level 2 19 — — Prepaid forward contracts Level 1 34 38 42 Beneficial interest asset Level 3 23 43 50 Other noncurrent assets Interest rate swaps (a) Level 2 22 65 51 Company-owned life insurance investments (b) Level 2 325 322 322 Beneficial interest asset Level 3 15 31 37 Liabilities Other current liabilities Interest rate swaps (a) Level 2 12 — — Other noncurrent liabilities Interest rate swaps (a) Level 2 — 24 28 (a) See Note 10 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 $789 million at October 31, 2015 , $773 million at January 31, 2015 and $780 million at November 1, 2014 . Significant Financial Instruments not Measured at Fair Value (a) (millions) October 31, 2015 January 31, 2015 November 1, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Debt (b) $ 11,921 $ 13,322 $ 11,946 $ 14,089 $ 12,332 $ 13,779 (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 | 9 Months Ended |
Oct. 31, 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 Nine Months Ended (dollars in millions) October 31, November 1, October 31, November 1, Maximum daily amount outstanding during the period $ — $ 386 $ — $ 590 Average daily amount outstanding during the period — 51 — 160 Amount outstanding at period-end — 386 — 386 Weighted average interest rate — % 0.12 % — % 0.11 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets We review long-lived assets for impairment when events or changes in circumstances, such as a decision to discontinue a business, indicate that the asset’s carrying value may not be recoverable. We also review goodwill for impairment when events or circumstances indicate it is more likely than not the fair value of a reporting unit is below its carrying value. During the third quarter 2015, we announced our decision to wind down certain noncore operations. As a result, we recorded a $35 million pretax impairment loss, which included approximately $23 million of intangible assets and $12 million of goodwill. These costs were included in SG&A on our Consolidated Statements of Operations, but were not included in our segment results. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Oct. 31, 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 Nine Months Ended (millions) October 31, November 1, October 31, November 1, Total segment impairments $ 4 $ 18 $ 44 $ 77 Unallocated impairments (b) 4 — 4 16 Total impairments $ 8 $ 18 $ 48 $ 93 (a) Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Operations. (b) For the three and nine months ended October 31, 2015, represents long-lived asset impairments from our decision to wind down certain noncore operations. For the nine months ended November 1, 2014, represents impairments of undeveloped land. These costs were not included in our segment results. |
Data Breach
Data Breach | 9 Months Ended |
Oct. 31, 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 made a written claim against us regarding the Data Breach, either directly or through our acquiring banks. During the third quarter we entered into settlement agreements with two of the four payment card networks. We have resolved a claim from a third network and expect to resolve the remaining claim in the fourth quarter, both on terms consistent with our accrual. As previously reported, we entered into a Settlement Agreement to resolve and dismiss the claims asserted 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. That settlement received Court approval on November 17, 2015. Actions related to the Data Breach that remain pending are: (1) a class action brought on behalf of financial institutions; (2) one action previously filed in Canada; (3) several putative class action suits brought on behalf of shareholders; and (4) ongoing investigations by State Attorneys General and the Federal Trade Commission. Our accrual for estimated probable losses is based on actual settlements reached to date, discussions with the remaining two payment card networks and the expectation of negotiated settlements in the pending actions.We have not based our accrual on any determination that it is probable we would be found liable for the losses we have accrued were these claims to be litigated. While our estimates may change as new information becomes available, we do not believe any adjustments will be material. 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) 186 46 Payments made / received (69 ) (28 ) Balance at November 1, 2014 $ 178 $ 62 Balance at January 31, 2015 $ 171 $ 60 Expenses incurred / insurance receivable recorded (a) 38 — Payments made / received (95 ) (5 ) Balance at October 31, 2015 $ 114 $ 55 (a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as described below. We recorded $26 million and $38 million of pretax Data Breach-related expenses during the three and nine months ended October 31, 2015 , respectively. Along with legal and other professional services, expenses include an adjustment to the accrual in the third quarter of 2015 based on refined estimates of our probable exposure. We recorded $12 million of pretax Data Breach-related expenses during the three months ended November 1, 2014 . We recorded $186 million of pretax Data Breach-related expenses, partially offset by expected insurance proceeds of $46 million , for net expenses of $140 million during the nine months ended November 1, 2014. 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 $290 million of cumulative expenses, partially offset by expected insurance recoveries of $90 million , for net cumulative expenses of $200 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 | 9 Months Ended |
Oct. 31, 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 October 31, 2015 and November 1, 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 nine months ended October 31, 2015 or November 1, 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 Nine Months Ended Type of Contract Classification of (Income)/Expense October 31, November 1, October 31, November 1, Interest rate swaps Net interest expense $ (9 ) $ (9 ) $ (28 ) $ (23 ) 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 $20 million , $34 million and $38 million , at October 31, 2015 , January 31, 2015 and November 1, 2014 , respectively. |
Share Repurchase
Share Repurchase | 9 Months Ended |
Oct. 31, 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, we have repurchased 77.2 million shares of common stock through October 31, 2015 , at an average price of $68.86 , for a total investment of $5.3 billion . Share Repurchases Nine Months Ended (millions, except per share data) October 31, 2015 (a) November 1, 2014 (b) Total number of shares purchased 27.3 0.6 Average price paid per share $ 79.84 $ 55.36 Total investment $ 2,182 $ 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 12 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 | 9 Months Ended |
Oct. 31, 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 Nine Months Ended Three Months Ended Nine Months Ended (millions) Oct 31, Nov 1, Oct 31, Nov 1, Oct 31, Nov 1, Oct 31, Nov 1, Service cost $ 27 $ 28 $ 82 $ 84 $ — $ 2 $ 2 $ 4 Interest cost 38 37 115 112 — — 1 1 Expected return on assets (65 ) (58 ) (195 ) (175 ) — — — — Amortization of losses 20 16 62 49 9 1 11 4 Amortization of prior service cost (3 ) (2 ) (9 ) (8 ) (19 ) (4 ) (28 ) (12 ) Curtailment gain — — — — (43 ) — (43 ) — Settlement charges 1 — 3 — — — — — Total $ 18 $ 21 $ 58 $ 62 $ (53 ) $ (1 ) $ (57 ) $ (3 ) Effective April 1, 2016, we will discontinue the postretirement health care benefits that were offered to team members upon early retirement and prior to Medicare eligibility. This decision resulted in a $58 million reduction in the projected postretirement health care benefit obligation and a $43 million curtailment gain recorded in SG&A during the three months ended October 31, 2015. 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 $19 million of which was recognized during the three and nine months ended October 31, 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 loss of $2 million and pretax income of $2 million for the three and nine months ended October 31, 2015 , respectively, and pretax income of $1 million and $3 million for the three and nine months ended November 1, 2014 , respectively. During the nine months ended October 31, 2015 and November 1, 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 11. 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 October 31, 2015 0.4 $ 41.13 $ 34 $ 18 January 31, 2015 0.5 $ 41.11 $ 38 $ 21 November 1, 2014 0.7 $ 42.88 $ 42 $ 29 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Oct. 31, 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 — (3 ) 134 131 Amounts reclassified from AOCI 3 (a) — (4 ) (b) (1 ) October 31, 2015 $ (19 ) $ (19 ) $ (431 ) $ (469 ) (a) Represents gains and losses on cash flow hedges, net of $2 million of taxes. (b) Represents amortization of pension and other benefit liabilities, net of $2 million of taxes. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 31, 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 Nine Months Ended (millions) October 31, November 1, October 31, November 1, Sales $ 17,613 $ 17,254 $ 52,159 $ 50,868 Cost of sales 12,440 12,171 36,402 35,716 Gross margin 5,173 5,083 15,757 15,152 Selling, general and administrative expenses (a)(f) 3,650 3,632 10,533 10,450 Depreciation and amortization 561 535 1,651 1,584 Segment profit $ 962 $ 916 $ 3,573 $ 3,118 Restructuring costs (b)(f) (21 ) — (135 ) — Data Breach related costs (c)(f) (26 ) (12 ) (38 ) (140 ) Impairments (d)(f) (39 ) — (39 ) (16 ) Card brand conversion costs (e)(f) — — — (13 ) Earnings from continuing operations before interest expense and income taxes 876 904 3,361 2,949 Net interest expense 151 146 455 730 Earnings from continuing operations before income taxes $ 725 $ 758 $ 2,906 $ 2,219 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 9 for more information on Data Breach related costs. (d) Refer to Note 7 and Note 8 for more information on impairments. (e) Expense related to converting co-branded card program to MasterCard. (f) 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) October 31, January 31, November 1, Segment assets $ 41,148 $ 39,569 $ 40,051 Assets of discontinued operations 493 1,775 6,348 Unallocated assets (a) 55 60 62 Total assets $ 41,696 $ 41,404 $ 46,461 (a) Represents the insurance receivable related to the Data Breach. |
Pharmacies and Clinics Transa25
Pharmacies and Clinics Transaction (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets Held For Sale Classified | The agreement includes the sale of inventory and other assets. These currently held-for-sale assets have been classified as follows. (millions) October 31, January 31, November 1, Inventory included in other current assets $ 456 $ 506 (a) $ 507 Other current assets 15 3 (a) 3 Other noncurrent assets — 12 (a) 12 Total $ 471 $ 521 $ 522 (a) Amounts have been updated to be comparable with the current period. |
Canada Exit (Tables)
Canada Exit (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Discontinued Operations Three Months Ended Nine Months Ended (millions) October 31, November 1, October 31, November 1, Sales $ — $ 479 $ — $ 1,321 Cost of sales — 386 — 1,072 SG&A expenses — 250 — 685 Depreciation and amortization — 70 — 207 Interest expense — 19 — 57 Pretax loss from operations — (246 ) — (700 ) Pretax exit costs (a) (2 ) — (115 ) — Income taxes 75 72 152 215 Earnings / (losses) from discontinued operations $ 73 $ (174 ) $ 37 $ (485 ) (a) For the three and nine months ended October 31, 2015, pretax exit costs related to our ongoing support of the liquidation process and other professional fees. For the nine months ended October 31, 2015, pretax exits costs also included 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 Assets and Liabilities of Discontinued Operations | Assets and Liabilities of Discontinued Operations (millions) October 31, January 31, November 1, Income tax benefit $ 181 $ 1,430 Inventory $ 603 Receivables from Canada Subsidiaries 312 326 Property and equipment, net 4,846 Receivables under the debtor-in-possession credit facility — 19 Other 899 Total assets $ 493 $ 1,775 Total assets $ 6,348 Capital lease obligations $ 1,198 Accrued liabilities $ 297 $ 296 Accounts payable and other liabilities 600 Total liabilities $ 297 $ 296 Total liabilities $ 1,798 |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | Restructuring Costs October 31, 2015 (millions) Three Months Ended Nine Months Ended Severance $ 19 $ 127 Pension and other 2 8 Total $ 21 $ 135 |
Schedule of 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 127 8 135 Paid or otherwise settled (113 ) (8 ) (121 ) Restructuring liability as of October 31, 2015 $ 14 $ — $ 14 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 October 31, January 31, November 1, Assets Cash and cash equivalents Short-term investments Level 1 $ 1,154 $ 1,520 $ 4 Other current assets Interest rate swaps (a) Level 2 19 — — Prepaid forward contracts Level 1 34 38 42 Beneficial interest asset Level 3 23 43 50 Other noncurrent assets Interest rate swaps (a) Level 2 22 65 51 Company-owned life insurance investments (b) Level 2 325 322 322 Beneficial interest asset Level 3 15 31 37 Liabilities Other current liabilities Interest rate swaps (a) Level 2 12 — — Other noncurrent liabilities Interest rate swaps (a) Level 2 — 24 28 (a) See Note 10 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 $789 million at October 31, 2015 , $773 million at January 31, 2015 and $780 million at November 1, 2014 . |
Schedule of Significant Financial Instruments not Measured at Fair Value | Significant Financial Instruments not Measured at Fair Value (a) (millions) October 31, 2015 January 31, 2015 November 1, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Debt (b) $ 11,921 $ 13,322 $ 11,946 $ 14,089 $ 12,332 $ 13,779 (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 D29
Notes Payable and Long-Term Debt (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of 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 Nine Months Ended (dollars in millions) October 31, November 1, October 31, November 1, Maximum daily amount outstanding during the period $ — $ 386 $ — $ 590 Average daily amount outstanding during the period — 51 — 160 Amount outstanding at period-end — 386 — 386 Weighted average interest rate — % 0.12 % — % 0.11 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Impairments | 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 Nine Months Ended (millions) October 31, November 1, October 31, November 1, Total segment impairments $ 4 $ 18 $ 44 $ 77 Unallocated impairments (b) 4 — 4 16 Total impairments $ 8 $ 18 $ 48 $ 93 (a) Substantially all of the impairments are recorded in selling, general and administrative expense on the Consolidated Statements of Operations. (b) For the three and nine months ended October 31, 2015, represents long-lived asset impairments from our decision to wind down certain noncore operations. For the nine months ended November 1, 2014, represents impairments of undeveloped land. These costs were not included in our segment results. |
Data Breach (Tables)
Data Breach (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Data Breach Balance Sheet Rollforward | Data Breach Balance Sheet Rollforward (millions) Liabilities Insurance Receivable Balance at February 1, 2014 $ 61 $ 44 Expenses incurred / insurance receivable recorded (a) 186 46 Payments made / received (69 ) (28 ) Balance at November 1, 2014 $ 178 $ 62 Balance at January 31, 2015 $ 171 $ 60 Expenses incurred / insurance receivable recorded (a) 38 — Payments made / received (95 ) (5 ) Balance at October 31, 2015 $ 114 $ 55 (a) Includes expenditures and accruals for Data Breach-related costs and expected insurance recoveries as described below. |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of 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 Nine Months Ended Type of Contract Classification of (Income)/Expense October 31, November 1, October 31, November 1, Interest rate swaps Net interest expense $ (9 ) $ (9 ) $ (28 ) $ (23 ) |
Share Repurchase (Tables)
Share Repurchase (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Equity [Abstract] | |
Schedule of Share Repurchase | Share Repurchases Nine Months Ended (millions, except per share data) October 31, 2015 (a) November 1, 2014 (b) Total number of shares purchased 27.3 0.6 Average price paid per share $ 79.84 $ 55.36 Total investment $ 2,182 $ 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 12 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 Healt34
Pension, Postretirement Health Care and Other Benefits (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of 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 Nine Months Ended Three Months Ended Nine Months Ended (millions) Oct 31, Nov 1, Oct 31, Nov 1, Oct 31, Nov 1, Oct 31, Nov 1, Service cost $ 27 $ 28 $ 82 $ 84 $ — $ 2 $ 2 $ 4 Interest cost 38 37 115 112 — — 1 1 Expected return on assets (65 ) (58 ) (195 ) (175 ) — — — — Amortization of losses 20 16 62 49 9 1 11 4 Amortization of prior service cost (3 ) (2 ) (9 ) (8 ) (19 ) (4 ) (28 ) (12 ) Curtailment gain — — — — (43 ) — (43 ) — Settlement charges 1 — 3 — — — — — Total $ 18 $ 21 $ 58 $ 62 $ (53 ) $ (1 ) $ (57 ) $ (3 ) |
Schedule of Prepaid Forward Contracts on Target Common Stock | 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 October 31, 2015 0.4 $ 41.13 $ 34 $ 18 January 31, 2015 0.5 $ 41.11 $ 38 $ 21 November 1, 2014 0.7 $ 42.88 $ 42 $ 29 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Oct. 31, 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 — (3 ) 134 131 Amounts reclassified from AOCI 3 (a) — (4 ) (b) (1 ) October 31, 2015 $ (19 ) $ (19 ) $ (431 ) $ (469 ) (a) Represents gains and losses on cash flow hedges, net of $2 million of taxes. (b) Represents amortization of pension and other benefit liabilities, net of $2 million of taxes. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Results and Reconciliation of Segment Assets to Total Assets | 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 Nine Months Ended (millions) October 31, November 1, October 31, November 1, Sales $ 17,613 $ 17,254 $ 52,159 $ 50,868 Cost of sales 12,440 12,171 36,402 35,716 Gross margin 5,173 5,083 15,757 15,152 Selling, general and administrative expenses (a)(f) 3,650 3,632 10,533 10,450 Depreciation and amortization 561 535 1,651 1,584 Segment profit $ 962 $ 916 $ 3,573 $ 3,118 Restructuring costs (b)(f) (21 ) — (135 ) — Data Breach related costs (c)(f) (26 ) (12 ) (38 ) (140 ) Impairments (d)(f) (39 ) — (39 ) (16 ) Card brand conversion costs (e)(f) — — — (13 ) Earnings from continuing operations before interest expense and income taxes 876 904 3,361 2,949 Net interest expense 151 146 455 730 Earnings from continuing operations before income taxes $ 725 $ 758 $ 2,906 $ 2,219 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 9 for more information on Data Breach related costs. (d) Refer to Note 7 and Note 8 for more information on impairments. (e) Expense related to converting co-branded card program to MasterCard. (f) 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) October 31, January 31, November 1, Segment assets $ 41,148 $ 39,569 $ 40,051 Assets of discontinued operations 493 1,775 6,348 Unallocated assets (a) 55 60 62 Total assets $ 41,696 $ 41,404 $ 46,461 (a) Represents the insurance receivable related to the Data Breach. |
Pharmacies and Clinics Transa37
Pharmacies and Clinics Transaction - Narrative (Details) $ in Billions | Jun. 12, 2015USD ($) |
Pharmacy and Clinic Business | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash consideration | $ 1.9 |
Pharmacies and Clinics Transa38
Pharmacies and Clinics Transaction - Schedule of Assets Held For Sale Reclassified (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Discontinued Operations and Disposal Groups [Abstract] | |||
Inventory included in other current assets | $ 456 | $ 506 | $ 507 |
Other current assets | 15 | 3 | 3 |
Other noncurrent assets | 0 | 12 | 12 |
Total | $ 471 | $ 521 | $ 522 |
Canada Exit - Schedule of Disco
Canada Exit - Schedule of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Earnings / (losses) from discontinued operations | $ 73 | $ (174) | $ 37 | $ (485) |
Canada Exit | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sales | 0 | 479 | 0 | 1,321 |
Cost of sales | 0 | 386 | 0 | 1,072 |
SG&A expenses | 0 | 250 | 0 | 685 |
Depreciation and amortization | 0 | 70 | 0 | 207 |
Interest expense | 0 | 19 | 0 | 57 |
Pretax loss from operations | 0 | (246) | 0 | (700) |
Pretax exit costs | (2) | 0 | (115) | 0 |
Income taxes | 75 | 72 | 152 | 215 |
Earnings / (losses) from discontinued operations | $ 73 | $ (174) | $ 37 | $ (485) |
Canada Exit - Schedule of Asset
Canada Exit - Schedule of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Inventory | $ 456 | $ 506 | $ 507 |
Total | 471 | 521 | 522 |
Canada Exit | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income tax benefit | 181 | 1,430 | |
Inventory | 603 | ||
Receivables from Canada Subsidiaries | 312 | 326 | |
Property and equipment, net | 4,846 | ||
Receivables under the debtor-in-possession credit facility | 0 | 19 | |
Other | 899 | ||
Total | 493 | 1,775 | 6,348 |
Capital lease obligations | 1,198 | ||
Accrued liabilities | 297 | 296 | |
Accounts payable and other liabilities | 600 | ||
Total liabilities | $ 297 | $ 296 | $ 1,798 |
Canada Exit - Narrative (Detail
Canada Exit - Narrative (Details) | Nov. 23, 2015 |
Canada Exit | Subsequent Event | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Percentage of recorded accrual | 0.30 |
Canada Exit - Income Taxes (Det
Canada Exit - Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2015 | |
Canada Exit | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax benefits | $ 75 | $ 1,627 | $ 152 |
Restructuring Initiatives - Nar
Restructuring Initiatives - Narrative (Details) - 2015 Restructuring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2015 | Oct. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance and other benefits-related charges | $ 135 | |
SG&A | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other benefits-related charges | $ 21 | $ 135 |
Restructuring Initiatives - Sch
Restructuring Initiatives - Schedule of Restructuring Costs (Details) - 2015 Restructuring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2015 | Oct. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Total | $ 135 | |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 127 | |
Pension and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 8 | |
SG&A | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | $ 21 | 135 |
SG&A | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 19 | 127 |
SG&A | Pension and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | $ 2 | $ 8 |
Restructuring Initiatives - S45
Restructuring Initiatives - Schedule of Restructuring-Related Liabilities (Details) - 2015 Restructuring $ in Millions | 9 Months Ended |
Oct. 31, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | $ 0 |
Charges during period | 135 |
Paid or otherwise settled | (121) |
Restructuring liability, ending balance | 14 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | 0 |
Charges during period | 127 |
Paid or otherwise settled | (113) |
Restructuring liability, ending balance | 14 |
Pension and Other | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | 0 |
Charges during period | 8 |
Paid or otherwise settled | (8) |
Restructuring liability, ending balance | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Other current assets | |||
Other current assets | $ 2,402 | $ 2,261 | $ 2,355 |
Other noncurrent assets | |||
Other noncurrent assets | 978 | 923 | 1,050 |
Other noncurrent liabilities | |||
Interest rate swaps | 1,279 | 1,452 | 1,453 |
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | |||
Other current assets | |||
Other current assets | 34 | 38 | 42 |
Fair value measured on recurring basis | Level 2 | Interest rate swaps | |||
Other current assets | |||
Other current assets | 19 | 0 | 0 |
Other noncurrent assets | |||
Other noncurrent assets | 22 | 65 | 51 |
Other current liabilities | |||
Interest rate swaps | 12 | 0 | 0 |
Other noncurrent liabilities | |||
Interest rate swaps | 0 | 24 | 28 |
Short-term investments | Fair value measured on recurring basis | Level 1 | |||
Cash and cash equivalents | |||
Short-term investments | 1,154 | 1,520 | 4 |
Beneficial interest asset | Fair value measured on recurring basis | Level 3 | |||
Other current assets | |||
Other current assets | 23 | 43 | 50 |
Other noncurrent assets | |||
Other noncurrent assets | 15 | 31 | 37 |
Company-owned life insurance investments | Fair value measured on recurring basis | Level 2 | |||
Other noncurrent assets | |||
Other noncurrent assets | $ 325 | $ 322 | $ 322 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Company-owned life insurance investments | Fair value measured on recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan amounts | $ 789 | $ 773 | $ 780 |
Fair Value Measurements - Sch48
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Carrying Amount | |||
Financial Instruments, Balance Sheet Groupings | |||
Debt | $ 11,921 | $ 11,946 | $ 12,332 |
Fair Value | |||
Financial Instruments, Balance Sheet Groupings | |||
Debt | $ 13,322 | $ 14,089 | $ 13,779 |
Notes Payable and Long-Term D49
Notes Payable and Long-Term Debt (Details) - Commercial Paper - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Debt Instrument Line Items | ||||
Maximum daily amount outstanding during the period | $ 0 | $ 386 | $ 0 | $ 590 |
Average daily amount outstanding during the period | 0 | 51 | 0 | 160 |
Amount outstanding at period-end | $ 0 | $ 386 | $ 0 | $ 386 |
Weighted average interest rate | 0.00% | 0.12% | 0.00% | 0.11% |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Pretax impairment loss | $ 35 |
Intangible assets | 23 |
Goodwill | $ 12 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Total impairments | $ 8 | $ 18 | $ 48 | $ 93 |
Total segment impairments | ||||
Property, Plant and Equipment [Line Items] | ||||
Total impairments | 4 | 18 | 44 | 77 |
Unallocated impairments | ||||
Property, Plant and Equipment [Line Items] | ||||
Total impairments | $ 4 | $ 0 | $ 4 | $ 16 |
Data Breach - Narrative (Detail
Data Breach - Narrative (Details) - Data Breach individual in Millions, account in Millions | 3 Months Ended |
Feb. 01, 2014accountindividual | |
Loss Contingencies [Line Items] | |
Number of credit and debit card accounts stolen (up to) | account | 40 |
Number of individuals whose personal information was stolen (up to) | 70 |
Data Breach - Data Breach Relat
Data Breach - Data Breach Related Accruals (Details) - Data Breach $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2015credit_card_network | Oct. 31, 2015USD ($)actioncredit_card_network | |
Loss Contingencies [Line Items] | ||
Number of major payment card networks | credit_card_network | 2 | 4 |
Settlement amount to class member guests | $ | $ 10 | |
Canada | ||
Loss Contingencies [Line Items] | ||
Number of actions filed in court | 1 |
Data Breach - Schedule of Data
Data Breach - Schedule of Data Breach Balance Sheet Rollforward (Details) - Data Breach - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Liabilities | ||||
Beginning balance | $ 171 | $ 61 | ||
Expenses incurred / insurance receivable recorded | $ 26 | $ 12 | 38 | 186 |
Payments made / received | (95) | (69) | ||
Ending balance | 114 | 178 | 114 | 178 |
Insurance Receivable | ||||
Beginning balance | 60 | 44 | ||
Expenses incurred / insurance receivable recorded | 0 | 46 | ||
Payments made / received | (5) | (28) | ||
Ending balance | $ 55 | $ 62 | $ 55 | $ 62 |
Data Breach - Schedule of Dat55
Data Breach - Schedule of Data Breach Balance Sheet Rollforward Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 24 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | |
Loss Contingencies [Line Items] | |||||
Cumulative expenses incurred | $ 26 | $ 12 | $ 38 | $ 140 | |
Data Breach | |||||
Loss Contingencies [Line Items] | |||||
Pretax Data Breach-related expenses | $ 26 | $ 12 | 38 | 186 | |
Insurance proceeds | $ 0 | 46 | |||
Cumulative expenses incurred | $ 290 | ||||
Expected insurance recoveries | 90 | ||||
Net cumulative expense | $ 200 | ||||
Data Breach | SG&A | |||||
Loss Contingencies [Line Items] | |||||
Net expense | $ 140 |
Data Breach - Insurance Coverag
Data Breach - Insurance Coverage (Details) - Data Breach - USD ($) | 9 Months Ended | 24 Months Ended |
Oct. 31, 2015 | Oct. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Network-security insurance coverage | $ 100,000,000 | |
Deductible amount | 10,000,000 | |
Sublimit for settlements | $ 50,000,000 | |
Amount from network-security insurance carriers | $ 35,000,000 | |
Amount accrued | $ 90,000,000 |
Derivative Financial Instrume57
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($)swap | Nov. 01, 2014USD ($)swap | Oct. 31, 2015USD ($)swap | Nov. 01, 2014USD ($)swap | Jan. 31, 2015USD ($) | |
Derivative Contracts - Effect on Results of Operations (millions) | |||||
Amount of ineffectiveness recognized | $ 0 | $ 0 | $ 0 | $ 0 | |
Amount remaining on unamortized hedged debt valuation gains | 20,000,000 | 38,000,000 | 20,000,000 | 38,000,000 | $ 34,000,000 |
Interest Rate Swaps | |||||
Derivative Contracts - Effect on Results of Operations (millions) | |||||
Notional amount | $ 1,250,000,000 | $ 1,250,000,000 | $ 1,250,000,000 | $ 1,250,000,000 | |
Designated as Hedging Instrument | |||||
Derivative Contracts - Effect on Results of Operations (millions) | |||||
Number of interest rate swaps | swap | 3 | 3 | 3 | 3 |
Derivative Financial Instrume58
Derivative Financial Instruments - Derivative Contracts - Effect on Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Interest rate swaps | ||||
Derivative Contracts - Effect on Results of Operations (millions) | ||||
Net interest expense | $ (9) | $ (9) | $ (28) | $ (23) |
Share Repurchase - Narrative (D
Share Repurchase - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | 46 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Jun. 30, 2015 | |
Loss Contingencies [Line Items] | ||||
Cumulative shares of common stock repurchased (in shares) | 27.3 | 0.6 | 77.2 | |
Average price (in dollars per share) | $ 79.84 | $ 55.36 | $ 68.86 | |
Total investment | $ 2,182 | $ 34 | $ 5,300 | |
Repurchase of Share Repurchase Program 2015 | ||||
Loss Contingencies [Line Items] | ||||
Authorized expansion amount of existing share repurchase program | $ 5,000 | |||
New amount of existing share repurchase program | $ 10,000 |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | 46 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | Jan. 31, 2015 | Oct. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Total number of shares purchased | 27.3 | 0.6 | 77.2 | |
Average price paid per share | $ 79.84 | $ 55.36 | $ 68.86 | |
Total investment | $ 2,182 | $ 34 | $ 5,300 | |
Shares delivered upon noncash settlement of prepaid contracts (in shares) | 0.1 | |||
Original cash investment of shares delivered upon noncash settlement | $ 2,185 | $ 46 | ||
Cash Investment | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Original cash investment of shares delivered upon noncash settlement | 3 | 34 | ||
Prepaid Forward Contracts Market Value | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Aggregate market value | $ 7 | $ 35 |
Pension, Postretirement Healt61
Pension, Postretirement Health Care and Other Benefits - Schedule of Net Pension and Postretirement Health Care Benefits Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Pension Benefits | ||||
Net Pension and Postretirement Health Care Benefits Expense | ||||
Service cost | $ 27 | $ 28 | $ 82 | $ 84 |
Interest cost | 38 | 37 | 115 | 112 |
Expected return on assets | (65) | (58) | (195) | (175) |
Amortization of losses | 20 | 16 | 62 | 49 |
Amortization of prior service cost | (3) | (2) | (9) | (8) |
Curtailment gain | 0 | 0 | 0 | 0 |
Settlement charges | 1 | 0 | 3 | 0 |
Total | 18 | 21 | 58 | 62 |
Postretirement Health Care Benefits | ||||
Net Pension and Postretirement Health Care Benefits Expense | ||||
Service cost | 0 | 2 | 2 | 4 |
Interest cost | 0 | 0 | 1 | 1 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of losses | 9 | 1 | 11 | 4 |
Amortization of prior service cost | (19) | (4) | (28) | (12) |
Curtailment gain | (43) | 0 | (43) | 0 |
Settlement charges | 0 | 0 | 0 | 0 |
Total | $ (53) | $ (1) | $ (57) | $ (3) |
Pension, Postretirement Healt62
Pension, Postretirement Health Care and Other Benefits - Pension and Postretirement Health Care Benefits Narrative (Details) - USD ($) $ in Millions | Mar. 09, 2015 | Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | Jan. 30, 2016 |
Postretirement Health Care Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Curtailment gain | $ 43 | $ 0 | $ 43 | $ 0 | ||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Remeasurement reduction to projected benefit obligation | $ 208 | |||||
Curtailment gain | 0 | $ 0 | 0 | $ 0 | ||
Increase in discount rate | 41.00% | |||||
Remeasurement reduction to plan assets | $ 47 | |||||
Plan assets | 3,725 | 3,725 | ||||
Projected benefit obligation | 3,604 | 3,604 | ||||
Reduction in pension expense | 8 | $ 19 | ||||
Pension Plan | Scenario, Forecast | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Reduction in pension expense | $ 26 | |||||
SG&A | Postretirement Health Care Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Remeasurement reduction to projected benefit obligation | 58 | |||||
Curtailment gain | $ 43 |
Pension, Postretirement Healt63
Pension, Postretirement Health Care and Other Benefits - Other Benefits (Details) - Prepaid forward contracts - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | Jan. 31, 2015 | |
Prepaid Forward Contracts on Target Common Stock | |||||
Pretax income (loss) | $ (2,000,000) | $ 1,000,000 | $ 2,000,000 | $ 3,000,000 | |
Investments in prepaid forward contracts | $ 0 | $ 0 | |||
Number of Shares (in shares) | 0.4 | 0.7 | 0.4 | 0.7 | 0.5 |
Contractual Price Paid per Share (in dollars per share) | $ 41.13 | $ 42.88 | $ 41.11 | ||
Contractual Fair Value | $ 34,000,000 | $ 42,000,000 | $ 34,000,000 | $ 42,000,000 | $ 38,000,000 |
Total Cash Investment | $ 18,000,000 | $ 29,000,000 | $ 18,000,000 | $ 29,000,000 | $ 21,000,000 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (599) | |||
Other comprehensive income before reclassifications | 131 | |||
Amounts reclassified from AOCI | (1) | |||
Balance at end of period | $ (469) | (469) | ||
Net amount of taxes | 249 | $ 232 | 1,006 | $ 730 |
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 | 3 | |||
Balance at end of period | (19) | (19) | ||
Cash Flow Hedges | Amount reclassified from other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Net amount of taxes | 2 | |||
Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (16) | |||
Other comprehensive income before reclassifications | (3) | |||
Amounts reclassified from AOCI | 0 | |||
Balance at end of period | (19) | (19) | ||
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 | 134 | |||
Amounts reclassified from AOCI | (4) | |||
Balance at end of period | $ (431) | (431) | ||
Pension and Other Benefits | Amount reclassified from other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Net amount of taxes | $ 2 |
Segment Reporting - Business Se
Segment Reporting - Business Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 17,613 | $ 17,254 | $ 52,159 | $ 50,868 |
Cost of sales | 12,440 | 12,171 | 36,402 | 35,716 |
Gross margin | 5,173 | 5,083 | 15,757 | 15,152 |
Selling, general and administrative expenses | 3,650 | 3,632 | 10,533 | 10,450 |
Depreciation and amortization | 561 | 535 | 1,651 | 1,584 |
Segment profit | 962 | 916 | 3,573 | 3,118 |
Restructuring costs | (21) | 0 | (135) | 0 |
Data Breach related costs | (26) | (12) | (38) | (140) |
Impairments | 39 | 0 | 39 | 16 |
Card brand conversion costs | 0 | 0 | 0 | (13) |
Earnings from continuing operations before interest expense and income taxes | 876 | 904 | 3,361 | 2,949 |
Net interest expense | 151 | 146 | 455 | 730 |
Earnings from continuing operations before income taxes | $ 725 | $ 758 | $ 2,906 | $ 2,219 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Assets to Total Assets (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Segment Reporting Information 2 [Line Items] | |||
Total assets | $ 41,696 | $ 41,404 | $ 46,461 |
Assets of discontinued operations | |||
Segment Reporting Information 2 [Line Items] | |||
Total assets | 493 | 1,775 | 6,348 |
Segment assets | |||
Segment Reporting Information 2 [Line Items] | |||
Total assets | 41,148 | 39,569 | 40,051 |
Unallocated assets | |||
Segment Reporting Information 2 [Line Items] | |||
Total assets | $ 55 | $ 60 | $ 62 |