Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 29, 2016 | Nov. 17, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | TARGET CORP | |
Entity Central Index Key | 27,419 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 29, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 561,695,464 | |
Document Fiscal Year Focus | 2,016 | |
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. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Income Statement [Abstract] | ||||
Sales | $ 16,441 | $ 17,613 | $ 48,805 | $ 52,159 |
Cost of sales | 11,471 | 12,440 | 33,757 | 36,402 |
Gross margin | 4,970 | 5,173 | 15,048 | 15,757 |
Selling, general and administrative expenses | 3,339 | 3,736 | 9,741 | 10,745 |
Depreciation and amortization | 570 | 561 | 1,686 | 1,651 |
Earnings from continuing operations before interest expense and income taxes | 1,061 | 876 | 3,621 | 3,361 |
Net interest expense | 142 | 151 | 864 | 455 |
Earnings from continuing operations before income taxes | 919 | 725 | 2,757 | 2,906 |
Provision for income taxes | 311 | 249 | 910 | 1,006 |
Net earnings from continuing operations | 608 | 476 | 1,847 | 1,900 |
Discontinued operations, net of tax | 0 | 73 | 73 | 37 |
Net earnings | $ 608 | $ 549 | $ 1,920 | $ 1,937 |
Basic earnings per share | ||||
Continuing operations (in dollars per share) | $ 1.07 | $ 0.76 | $ 3.16 | $ 3 |
Discontinued operations (in dollars per share) | 0 | 0.12 | 0.12 | 0.06 |
Net earnings per share (in dollars per share) | 1.07 | 0.88 | 3.29 | 3.06 |
Diluted earnings per share | ||||
Continuing operations (in dollars per share) | 1.06 | 0.76 | 3.14 | 2.98 |
Discontinued operations (in dollars per share) | 0 | 0.11 | 0.12 | 0.06 |
Net earnings per share (in dollars per share) | $ 1.06 | $ 0.87 | $ 3.26 | $ 3.03 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 570.1 | 623.7 | 583.5 | 633.5 |
Dilutive impact of share-based awards (in shares) | 4.7 | 5.1 | 5 | 5.2 |
Diluted (in shares) | 574.8 | 628.8 | 588.5 | 638.7 |
Antidilutive shares (in shares) | 0.2 | 0 | 0.1 | 0 |
Dividends declared per share (in dollars per share) | $ 0.6 | $ 0.56 | $ 1.76 | $ 1.64 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 608 | $ 549 | $ 1,920 | $ 1,937 |
Other comprehensive income, net of tax | ||||
Pension and other benefit liabilities, net of taxes of $3, $8, $11 and $84 | 6 | 13 | 17 | 130 |
Currency translation adjustment and cash flow hedges, net of taxes of $1, $1, $2 and $2 | 0 | (1) | 5 | 0 |
Other comprehensive income | 6 | 12 | 22 | 130 |
Comprehensive income | $ 614 | $ 561 | $ 1,942 | $ 2,067 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other benefit liabilities, taxes | $ 3 | $ 8 | $ 11 | $ 84 |
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. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Assets | |||
Cash and cash equivalents, including short term investments of $0, $3,008 and $1,154 | $ 1,231 | $ 4,046 | $ 1,977 |
Inventory | 10,057 | 8,601 | 10,374 |
Current assets of discontinued operations | 62 | 322 | 399 |
Other current assets | 1,492 | 1,161 | 2,194 |
Total current assets | 12,842 | 14,130 | 14,944 |
Property and equipment | |||
Land | 6,106 | 6,125 | 6,118 |
Buildings and improvements | 27,518 | 27,059 | 26,912 |
Fixtures and equipment | 5,467 | 5,347 | 5,283 |
Computer hardware and software | 2,538 | 2,617 | 2,652 |
Construction-in-progress | 219 | 315 | 428 |
Accumulated depreciation | (16,946) | (16,246) | (15,921) |
Property and equipment, net | 24,902 | 25,217 | 25,472 |
Noncurrent assets of discontinued operations | 17 | 75 | 94 |
Other noncurrent assets | 842 | 840 | 941 |
Total assets | 38,603 | 40,262 | 41,451 |
Liabilities and shareholders’ investment | |||
Accounts payable | 8,250 | 7,418 | 8,904 |
Accrued and other current liabilities | 3,662 | 4,236 | 3,868 |
Current portion of long-term debt and other borrowings | 729 | 815 | 825 |
Current liabilities of discontinued operations | 1 | 153 | 261 |
Total current liabilities | 12,642 | 12,622 | 13,858 |
Long-term debt and other borrowings | 12,097 | 11,945 | 11,887 |
Deferred income taxes | 920 | 823 | 1,135 |
Noncurrent liabilities of discontinued operations | 18 | 18 | 36 |
Other noncurrent liabilities | 1,857 | 1,897 | 1,279 |
Total noncurrent liabilities | 14,892 | 14,683 | 14,337 |
Shareholders’ investment | |||
Common stock | 47 | 50 | 52 |
Additional paid-in capital | 5,598 | 5,348 | 5,314 |
Retained earnings | 6,031 | 8,188 | 8,359 |
Accumulated other comprehensive loss | |||
Pension and other benefit liabilities | (571) | (588) | (431) |
Currency translation adjustment and cash flow hedges | (36) | (41) | (38) |
Total shareholders’ investment | 11,069 | 12,957 | 13,256 |
Total liabilities and shareholders’ investment | $ 38,603 | $ 40,262 | $ 41,451 |
Consolidated Statements of Fin6
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Statement of Financial Position [Abstract] | |||
Cash and cash equivalents, short-term investments | $ 0 | $ 3,008 | $ 1,154 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.0833 | $ 0.0833 | $ 0.0833 |
Common stock, shares issued | 563,676,785 | 602,226,517 | 618,604,168 |
Common stock, shares outstanding | 563,676,785 | 602,226,517 | 618,604,168 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Operating activities | |||||
Net earnings | $ 608 | $ 549 | $ 1,920 | $ 1,937 | $ 3,363 |
Earnings from discontinued operations, net of tax | 0 | 73 | 73 | 37 | |
Net earnings from continuing operations | 608 | 476 | 1,847 | 1,900 | |
Adjustments to reconcile net earnings to cash provided by operations: | |||||
Depreciation and amortization | 570 | 561 | 1,686 | 1,651 | |
Share-based compensation expense | 85 | 84 | |||
Deferred income taxes | 83 | (111) | |||
Loss on debt extinguishment | 422 | 0 | |||
Noncash losses and other, net | 12 | 37 | |||
Changes in operating accounts | |||||
Inventory | (1,455) | (2,096) | |||
Other assets | (13) | 95 | |||
Accounts payable and accrued liabilities | 103 | 1,475 | |||
Cash provided by operating activities—continuing operations | 2,770 | 3,035 | |||
Cash provided by operating activities—discontinued operations | 111 | 804 | |||
Cash provided by operations | 2,881 | 3,839 | |||
Investing activities | |||||
Expenditures for property and equipment | (1,184) | (1,129) | |||
Proceeds from disposal of property and equipment | 23 | 21 | |||
Proceeds from sale of business | 0 | 8 | |||
Other investments | 23 | 12 | |||
Cash required for investing activities—continuing operations | (1,138) | (1,088) | |||
Cash provided by investing activities—discontinued operations | 0 | 19 | |||
Cash required for investing activities | (1,138) | (1,069) | |||
Financing activities | |||||
Change in commercial paper, net | 89 | 0 | |||
Additions to long-term debt | 1,977 | 0 | |||
Reductions of long-term debt | (2,625) | (72) | |||
Dividends paid | (1,011) | (1,017) | |||
Repurchase of stock | (3,034) | (2,196) | |||
Prepayment of accelerated share repurchase | (120) | 0 | |||
Stock option exercises | 166 | 282 | |||
Cash required for financing activities | (4,558) | (3,003) | |||
Net decrease in cash and cash equivalents | (2,815) | (233) | |||
Cash and cash equivalents at beginning of period | 4,046 | 2,210 | 2,210 | ||
Cash and cash equivalents at end of period | $ 1,231 | $ 1,977 | $ 1,231 | $ 1,977 | $ 4,046 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 29, 2016 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance (in shares) | 602,226,517 | |||
Beginning balance | $ 12,957 | $ 13,997 | $ 13,997 | |
Net earnings | $ 608 | 1,920 | 1,937 | 3,363 |
Other comprehensive income | $ 6 | 22 | $ 130 | (30) |
Dividends declared | (1,022) | (1,378) | ||
Repurchase of stock | (3,038) | (3,445) | ||
Stock to be received upon settlement of ASR | (20) | |||
Stock options and awards | $ 250 | $ 450 | ||
Ending balance (in shares) | 563,676,785 | 563,676,785 | 618,604,168 | 602,226,517 |
Ending balance | $ 11,069 | $ 11,069 | $ 13,256 | $ 12,957 |
Common Stock | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance (in shares) | 602,200,000 | 640,200,000 | 640,200,000 | |
Beginning balance | $ 50 | $ 53 | $ 53 | |
Repurchase of stock (in shares) | (41,900,000) | (44,700,000) | ||
Repurchase of stock | $ (3) | $ (4) | ||
Stock options and awards (in shares) | 3,400,000 | 6,700,000 | ||
Stock options and awards | $ 0 | $ 1 | ||
Ending balance (in shares) | 563,700,000 | 563,700,000 | 602,200,000 | |
Ending balance | $ 47 | $ 47 | $ 50 | |
Additional Paid-in Capital | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | 5,348 | 4,899 | 4,899 | |
Stock options and awards | 250 | 449 | ||
Ending balance | 5,598 | 5,598 | 5,348 | |
Retained Earnings | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | 8,188 | 9,644 | 9,644 | |
Net earnings | 1,920 | 3,363 | ||
Dividends declared | (1,022) | (1,378) | ||
Repurchase of stock | (3,035) | (3,441) | ||
Stock to be received upon settlement of ASR | (20) | |||
Ending balance | 6,031 | 6,031 | 8,188 | |
Accumulated Other Comprehensive Income/(Loss) | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | (629) | $ (599) | (599) | |
Other comprehensive income | 22 | (30) | ||
Ending balance | $ (607) | $ (607) | $ (629) |
Accounting Policies
Accounting Policies | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies These financial statements should be read in conjunction with the financial statement disclosures in our 2015 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. |
Revenues
Revenues | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Revenues | Revenues In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue for the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. We must adopt the standard no later than the first quarter of 2018, which begins on February 4, 2018. We do not plan to early adopt the standard. Companies may use either a full retrospective or a modified retrospective approach to adopt the standard. While we are still evaluating the standard, including our adoption method, we do not expect the standard to materially affect our consolidated net income, financial position or cash flows. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Oct. 29, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations As part of a March 2016 settlement between Target Canada Co. and certain other wholly owned subsidiaries of Target (collectively, Canada Subsidiaries) and all of their former landlords, we agreed to subordinate a portion of our intercompany claims and make certain cash contributions to the Target Canada Co. estate in exchange for a full release from our obligations under guarantees of certain leases of the Canada Subsidiaries. The settlement was contingent upon the Canada Subsidiaries' creditors' and the court's approval of a plan of compromise and arrangement to complete the controlled, orderly, and timely wind-down of the Canada Subsidiaries (Plan). During the second quarter of 2016, a Plan was approved. The net pretax financial impact of the settlement and Plan was materially consistent with amounts previously recorded in our financial statements. For the nine months ended October 29, 2016, net earnings from discontinued operations primarily reflect tax benefits from investment losses in Canada recognized upon court approval of the Plan. During the three and nine months ended October 29, 2016, we received $21 million and $182 million , respectively, from the Target Canada Co. estate. During the second quarter of 2016, we made cash contributions of $27 million to the Target Canada Co. estate. Assets and Liabilities of Discontinued Operations (millions) October 29, January 30, October 31, Income tax benefit $ 41 $ 77 $ 181 Receivables from Canada Subsidiaries 38 320 312 Total assets $ 79 $ 397 $ 493 Accrued liabilities $ 19 $ 171 $ 297 Total liabilities $ 19 $ 171 $ 297 |
Restructuring Initiatives
Restructuring Initiatives | 9 Months Ended |
Oct. 29, 2016 | |
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 required cash expenditures and were not included in our segment results. An accrual for restructuring costs of $14 million was included in other current liabilities as of October 31, 2015. No balance remained as of October 29, 2016. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 29, 2016 | |
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 29, January 30, October 31, Assets Cash and cash equivalents Short-term investments Level 1 $ — $ 3,008 $ 1,154 Other current assets Prepaid forward contracts Level 1 28 32 34 Beneficial interest asset Level 3 10 19 23 Interest rate swaps (a) Level 2 — 12 19 Other noncurrent assets Interest rate swaps (a) Level 2 19 27 22 Beneficial interest asset Level 3 5 12 15 Liabilities Other current liabilities Interest rate swaps (a) Level 2 — 8 12 (a) See Note 9 for additional information on interest rate swaps. Significant Financial Instruments not Measured at Fair Value (a) (millions) October 29, 2016 January 30, 2016 October 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Debt (b) $ 11,802 $ 13,171 $ 11,859 $ 13,385 $ 11,857 $ 13,322 (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. 29, 2016 | |
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. For the three and nine months ended October 29, 2016, the maximum amount outstanding was $89 million and the average daily amounts outstanding were $3 million and $1 million , respectively, at a weighted average annual interest rate of 0.43 percent . At October 29, 2016, $89 million was outstanding. No balances were outstanding at any time during 2015. In April 2016, we issued unsecured fixed rate debt of $1 billion at 2.5% that matures in April 2026 and $1 billion at 3.625% that matures in April 2046. During the first half of 2016, we used cash on hand and proceeds from these issuances to repurchase $1,389 million of debt before its maturity at a market value of $1,800 million . We recognized a loss on early retirement of approximately $422 million , which was recorded in net interest expense in our Consolidated Statements of Operations. In October 2016, we obtained a committed $2.5 billion revolving credit facility that expires in October 2021. This new unsecured revolving credit facility replaced a $2.25 billion unsecured revolving credit facility that was scheduled to expire in October 2018. No balances were outstanding under either credit facility at any time during 2016 or 2015 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 29, 2016 | |
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. 29, 2016 | |
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 29, October 31, October 29, October 31, Total segment impairments $ 9 $ 4 $ 37 $ 44 Unallocated impairments (b) — 4 — 4 Total impairments $ 9 $ 8 $ 37 $ 48 (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. These costs were not included in our segment results. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 29, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our derivative instruments primarily consist of interest rate swaps, which we use to mitigate interest rate risk. As a result of our use of derivative instruments, we have counterparty credit 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 29, 2016 and October 31, 2015 , interest rate swaps with notional amounts totaling $1,000 million and $1,250 million , respectively, were designated fair value hedges. No ineffectiveness was recognized during the three and nine months ended October 29, 2016 or October 31, 2015 . As of October 29, 2016 , one interest rate swap with a notional amount of $250 million was not designated a fair value hedge because it was de-designated concurrent with the repurchase of debt during the first half of 2016. As of October 31, 2015 , two interest rate swaps, each with a notional amount of $500 million , were not designated fair value hedges. These two interest rate swaps had largely offsetting terms and matured during the second quarter of 2016. 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 $6 million , $15 million , and $20 million , at October 29, 2016 , January 30, 2016 , and October 31, 2015 , respectively. 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 29, October 31, October 29, October 31, Interest rate swaps Net interest expense $ (5 ) $ (9 ) $ (21 ) $ (28 ) |
Leases
Leases | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. We must adopt the standard no later than the first quarter of 2019, which begins on February 3, 2019. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. While we are still evaluating the standard, we plan to early adopt the standard during the second half of 2017. Our ability to early adopt is contingent on system readiness, including software procured from third-party providers. While we continue to assess all potential impacts, we believe the most significant impact relates to our accounting for retail-store and office-space real estate leases, which will be recorded as assets and liabilities on our balance sheet upon adoption. We do not believe the new standard will have a notable impact on our liquidity. The standard will have no impact on our debt-covenant compliance under our current agreements. |
Share Repurchase
Share Repurchase | 9 Months Ended |
Oct. 29, 2016 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase In September 2016, our Board of Directors authorized a new $5 billion share repurchase program. We will begin repurchasing shares under this new authorization upon completion of the current $10 billion program, under which we have repurchased 133.1 million shares of common stock through October 29, 2016 at an average price of $70.52 , for a total investment of $9.4 billion , excluding the initial share delivery and $350 million prepayment under the accelerated shares repurchase agreement (ASR) described below. During the third quarter of 2016, we entered into an ASR to repurchase $250 to $350 million of our common stock under the existing $10 billion share repurchase program. Under the agreement, we prepaid $350 million and received an initial delivery of 3.4 million shares, which were retired, resulting in a $230 million reduction to shareholders' investment. As of October 29, 2016, $20 million was included in the Consolidated Statement of Financial Position as an additional reduction to shareholders' investment because the minimum repurchase was $250 million . The remaining $100 million was included in other current assets. The ASR was not accounted for as a derivative instrument. In November 2016, the ASR settled. We received an additional 1.3 million shares, which were retired, and $36 million for the remaining amount not settled in shares. In total, we repurchased 4.6 million shares under the ASR for a total cash investment of $314 million ( $67.67 per share). Share Repurchases (excluding 2016 ASR) Nine Months Ended (a) (millions, except per share data) October 29, October 31, Total number of shares purchased 38.5 27.3 Average price paid per share $ 72.87 $ 79.84 Total investment $ 2,807 $ 2,182 Note: Accelerated share repurchase activity in 2016 is omitted because the transaction was not fully settled as of October 29, 2016. Also excludes shares withheld to settle employee statutory tax withholding related to the vesting of share-based awards. (a) Includes 0.2 million and 0.1 million shares delivered upon the noncash settlement of prepaid contracts during the nine months ended October 29, 2016 and October 31, 2015, respectively. These contracts had an original cash investment of $12 million and $3 million , respectively, and aggregate market value of $13 million and $7 million . These contracts are among the investment vehicles used to reduce our economic exposure related to our nonqualified deferred compensation plans. Note 13 provides the details of our positions in prepaid forward contracts. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the first quarter of 2016, we adopted Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As a result of adoption, we recognized $18 million of excess tax benefits related to share-based payments in our provision for income taxes for the nine months ended October 29, 2016. These items were historically recorded in additional paid-in capital. In addition, for each period presented, cash flows related to excess tax benefits are classified as an operating activity along with other income tax cash flows. Cash paid on employees' behalf related to shares withheld for tax purposes is classified as a financing activity. Retrospective application of the cash flow presentation resulted in increases to both net cash provided by operations and net cash required for financing activities of $79 million for the nine months ended October 31, 2015. Compensation expense each period continues to reflect estimated forfeitures. |
Pension and Other Benefits
Pension and Other Benefits | 9 Months Ended |
Oct. 29, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Benefits | Pension and Other Benefits Pension Benefits We provide pension plan benefits to certain eligible team members. Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) October 29, October 31, October 29, October 31, Service cost $ 20 $ 27 $ 61 $ 82 Interest cost 34 38 103 115 Expected return on assets (64 ) (65 ) (193 ) (195 ) Amortization of losses 12 20 37 62 Amortization of prior service cost (2 ) (3 ) (8 ) (9 ) Settlement charges — 1 — 3 Total $ — $ 18 $ — $ 58 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 $3 million and $2 million for the three and nine months ended October 29, 2016 , respectively, and pretax (loss)/income of $(2) million and $2 million for the three and nine months ended October 31, 2015 , respectively. During the nine months ended October 29, 2016 and October 31, 2015 , 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. At October 29, 2016 , January 30, 2016 and October 31, 2015 , we held asset positions in prepaid forward contracts for 0.4 million shares of our common stock, for a total cash investment of $17 million , $18 million and $18 million ( $41.11 per share) and a contractual fair value of $28 million , $32 million and $34 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) / Income | 9 Months Ended |
Oct. 29, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) / Income | Accumulated Other Comprehensive (Loss) / Income (millions) Cash Flow Hedges Currency Translation Adjustment Pension and Other Benefits Total January 30, 2016 $ (19 ) $ (22 ) $ (588 ) $ (629 ) Other comprehensive income before reclassifications — 2 3 5 Amounts reclassified from AOCI 3 (a) — 14 (b) 17 October 29, 2016 $ (16 ) $ (20 ) $ (571 ) $ (607 ) (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 $9 million of taxes. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 29, 2016 | |
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 29, October 31, October 29, October 31, Sales $ 16,441 $ 17,613 $ 48,805 $ 52,159 Cost of sales 11,471 12,440 33,757 36,402 Gross margin 4,970 5,173 15,048 15,757 Selling, general, and administrative expenses (d) 3,343 3,650 9,741 10,533 Depreciation and amortization 570 561 1,686 1,651 Segment profit 1,057 962 3,621 3,573 Impairments (a)(d) — (39 ) — (39 ) Restructuring costs (b)(d) — (21 ) — (135 ) Other (c)(d) 4 (26 ) — (38 ) Earnings from continuing operations before interest expense and income taxes 1,061 876 3,621 3,361 Net interest expense 142 151 864 455 Earnings from continuing operations before income taxes $ 919 $ 725 $ 2,757 $ 2,906 Note: Amounts may not foot due to rounding. (a) Refer to Note 7 and Note 8. (b) Refer to Note 4. (c) For the three months ended October 29, 2016, represents items related to the December 2015 sale of our former pharmacy and clinic businesses to CVS. For the three and nine months ended October 31, 2015, represents legal, professional services, and other costs related to the 2013 data breach. (d) The sum of segment SG&A expenses, restructuring costs, pharmacy transaction-related costs, data breach-related costs, and impairments equal consolidated SG&A expenses. Reconciliation of Segment Assets to Total Assets (millions) October 29, January 30, October 31, Segment assets $ 38,524 $ 39,845 $ 40,903 Assets of discontinued operations 79 397 493 Unallocated assets (a) — 20 55 Total assets $ 38,603 $ 40,262 $ 41,451 (a) Represents the insurance receivable related to the 2013 data breach. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue for the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. We must adopt the standard no later than the first quarter of 2018, which begins on February 4, 2018. We do not plan to early adopt the standard. Companies may use either a full retrospective or a modified retrospective approach to adopt the standard. While we are still evaluating the standard, including our adoption method, we do not expect the standard to materially affect our consolidated net income, financial position or cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. We must adopt the standard no later than the first quarter of 2019, which begins on February 3, 2019. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. While we are still evaluating the standard, we plan to early adopt the standard during the second half of 2017. Our ability to early adopt is contingent on system readiness, including software procured from third-party providers. While we continue to assess all potential impacts, we believe the most significant impact relates to our accounting for retail-store and office-space real estate leases, which will be recorded as assets and liabilities on our balance sheet upon adoption. We do not believe the new standard will have a notable impact on our liquidity. The standard will have no impact on our debt-covenant compliance under our current agreements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities of Discontinued Operations | Assets and Liabilities of Discontinued Operations (millions) October 29, January 30, October 31, Income tax benefit $ 41 $ 77 $ 181 Receivables from Canada Subsidiaries 38 320 312 Total assets $ 79 $ 397 $ 493 Accrued liabilities $ 19 $ 171 $ 297 Total liabilities $ 19 $ 171 $ 297 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
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 29, January 30, October 31, Assets Cash and cash equivalents Short-term investments Level 1 $ — $ 3,008 $ 1,154 Other current assets Prepaid forward contracts Level 1 28 32 34 Beneficial interest asset Level 3 10 19 23 Interest rate swaps (a) Level 2 — 12 19 Other noncurrent assets Interest rate swaps (a) Level 2 19 27 22 Beneficial interest asset Level 3 5 12 15 Liabilities Other current liabilities Interest rate swaps (a) Level 2 — 8 12 (a) See Note 9 for additional information on interest rate swaps. |
Schedule of Significant Financial Instruments not Measured at Fair Value | Significant Financial Instruments not Measured at Fair Value (a) (millions) October 29, 2016 January 30, 2016 October 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Debt (b) $ 11,802 $ 13,171 $ 11,859 $ 13,385 $ 11,857 $ 13,322 (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. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
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 29, October 31, October 29, October 31, Total segment impairments $ 9 $ 4 $ 37 $ 44 Unallocated impairments (b) — 4 — 4 Total impairments $ 9 $ 8 $ 37 $ 48 (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. These costs were not included in our segment results. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
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 29, October 31, October 29, October 31, Interest rate swaps Net interest expense $ (5 ) $ (9 ) $ (21 ) $ (28 ) |
Share Repurchase (Tables)
Share Repurchase (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Equity [Abstract] | |
Schedule of Share Repurchase (excluding ASR) | Share Repurchases (excluding 2016 ASR) Nine Months Ended (a) (millions, except per share data) October 29, October 31, Total number of shares purchased 38.5 27.3 Average price paid per share $ 72.87 $ 79.84 Total investment $ 2,807 $ 2,182 Note: Accelerated share repurchase activity in 2016 is omitted because the transaction was not fully settled as of October 29, 2016. Also excludes shares withheld to settle employee statutory tax withholding related to the vesting of share-based awards. (a) Includes 0.2 million and 0.1 million shares delivered upon the noncash settlement of prepaid contracts during the nine months ended October 29, 2016 and October 31, 2015, respectively. These contracts had an original cash investment of $12 million and $3 million , respectively, and aggregate market value of $13 million and $7 million . These contracts are among the investment vehicles used to reduce our economic exposure related to our nonqualified deferred compensation plans. Note 13 provides the details of our positions in prepaid forward contracts. |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Pension and Postretirement Health Care Benefits Expense | We provide pension plan benefits to certain eligible team members. Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) October 29, October 31, October 29, October 31, Service cost $ 20 $ 27 $ 61 $ 82 Interest cost 34 38 103 115 Expected return on assets (64 ) (65 ) (193 ) (195 ) Amortization of losses 12 20 37 62 Amortization of prior service cost (2 ) (3 ) (8 ) (9 ) Settlement charges — 1 — 3 Total $ — $ 18 $ — $ 58 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive (Loss) / Income (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
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 30, 2016 $ (19 ) $ (22 ) $ (588 ) $ (629 ) Other comprehensive income before reclassifications — 2 3 5 Amounts reclassified from AOCI 3 (a) — 14 (b) 17 October 29, 2016 $ (16 ) $ (20 ) $ (571 ) $ (607 ) (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 $9 million of taxes. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
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 29, October 31, October 29, October 31, Sales $ 16,441 $ 17,613 $ 48,805 $ 52,159 Cost of sales 11,471 12,440 33,757 36,402 Gross margin 4,970 5,173 15,048 15,757 Selling, general, and administrative expenses (d) 3,343 3,650 9,741 10,533 Depreciation and amortization 570 561 1,686 1,651 Segment profit 1,057 962 3,621 3,573 Impairments (a)(d) — (39 ) — (39 ) Restructuring costs (b)(d) — (21 ) — (135 ) Other (c)(d) 4 (26 ) — (38 ) Earnings from continuing operations before interest expense and income taxes 1,061 876 3,621 3,361 Net interest expense 142 151 864 455 Earnings from continuing operations before income taxes $ 919 $ 725 $ 2,757 $ 2,906 Note: Amounts may not foot due to rounding. (a) Refer to Note 7 and Note 8. (b) Refer to Note 4. (c) For the three months ended October 29, 2016, represents items related to the December 2015 sale of our former pharmacy and clinic businesses to CVS. For the three and nine months ended October 31, 2015, represents legal, professional services, and other costs related to the 2013 data breach. (d) The sum of segment SG&A expenses, restructuring costs, pharmacy transaction-related costs, data breach-related costs, and impairments equal consolidated SG&A expenses. Reconciliation of Segment Assets to Total Assets (millions) October 29, January 30, October 31, Segment assets $ 38,524 $ 39,845 $ 40,903 Assets of discontinued operations 79 397 493 Unallocated assets (a) — 20 55 Total assets $ 38,603 $ 40,262 $ 41,451 (a) Represents the insurance receivable related to the 2013 data breach. |
Discontinued Operations (Detail
Discontinued Operations (Details) - Canada Exit - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 29, 2016 | Jul. 30, 2016 | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash distribution received from affiliate | $ 21 | $ 182 | |||
Cash contribution paid to affiliate | $ 27 | ||||
Assets and Liabilities of Discontinued Operations | |||||
Income tax benefit | 41 | 41 | $ 77 | $ 181 | |
Receivables from Canada Subsidiaries | 38 | 38 | 320 | 312 | |
Total | 79 | 79 | 397 | 493 | |
Accrued liabilities | 19 | 19 | 171 | 297 | |
Total liabilities | $ 19 | $ 19 | $ 171 | $ 297 |
Restructuring Initiatives (Det
Restructuring Initiatives (Details) - 2015 Restructuring - USD ($) | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2015 | Oct. 29, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring balance | $ 14,000,000 | $ 14,000,000 | $ 0 |
SG&A | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and other benefits-related charges | $ 21,000,000 | $ 135,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Other current assets | |||
Other current assets | $ 1,492 | $ 1,161 | $ 2,194 |
Other noncurrent assets | |||
Other noncurrent assets | 842 | 840 | 941 |
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | |||
Other current assets | |||
Other current assets | 28 | 32 | 34 |
Fair value measured on recurring basis | Level 1 | Short-term investments | |||
Cash and cash equivalents | |||
Short-term investments | 0 | 3,008 | 1,154 |
Fair value measured on recurring basis | Level 2 | Interest rate swaps | |||
Other current assets | |||
Other current assets | 0 | 12 | 19 |
Other noncurrent assets | |||
Other noncurrent assets | 19 | 27 | 22 |
Other current liabilities | |||
Interest rate swaps | 0 | 8 | 12 |
Fair value measured on recurring basis | Level 3 | Beneficial interest asset | |||
Other current assets | |||
Other current assets | 10 | 19 | 23 |
Other noncurrent assets | |||
Other noncurrent assets | $ 5 | $ 12 | $ 15 |
Fair Value Measurements - Sch36
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Carrying Amount | |||
Financial Instruments, Balance Sheet Groupings | |||
Debt | $ 11,802 | $ 11,859 | $ 11,857 |
Fair Value | |||
Financial Instruments, Balance Sheet Groupings | |||
Debt | $ 13,171 | $ 13,385 | $ 13,322 |
Notes Payable and Long-Term D37
Notes Payable and Long-Term Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Jul. 30, 2016 | Oct. 29, 2016 | Apr. 30, 2016 | Oct. 31, 2015 | |
Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Repurchased amount | $ 1,389,000,000 | ||||
Market value | 1,800,000,000 | ||||
Loss on early retirement | $ 422,000,000 | ||||
Unsecured Debt | Unsecured Fixed Rate 2.5 % Debt Maturing April 2026 | |||||
Debt Instrument [Line Items] | |||||
Unsecured fixed rate debt | $ 1,000,000,000 | ||||
Interest rate | 2.50% | ||||
Unsecured Debt | Unsecured Fixed Rate 3.625 % Debt Maturing April 2046 | |||||
Debt Instrument [Line Items] | |||||
Unsecured fixed rate debt | $ 1,000,000,000 | ||||
Interest rate | 3.625% | ||||
Revolving Credit Facility | Credit Facility Expiring October 2021 | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 2,500,000,000 | $ 2,500,000,000 | |||
Revolving Credit Facility | Credit Facility Expiring October 2018 | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | 2,250,000,000 | 2,250,000,000 | |||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Maximum amount outstanding during period | 89,000,000 | 89,000,000 | |||
Average daily amount outstanding | $ 3,000,000 | $ 1,000,000 | |||
Weighted average interest rate | 0.43% | 0.43% | |||
Amount outstanding | $ 89,000,000 | $ 89,000,000 | $ 0 |
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 |
Impairment of intangible assets | 23 |
Impairment of goodwill | $ 12 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Total impairments | $ 9 | $ 8 | $ 37 | $ 48 |
Total segment impairments | ||||
Property, Plant and Equipment [Line Items] | ||||
Total impairments | 9 | 4 | 37 | 44 |
Unallocated impairments | ||||
Property, Plant and Equipment [Line Items] | ||||
Total impairments | $ 0 | $ 4 | $ 0 | $ 4 |
Derivative Financial Instrume40
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Oct. 29, 2016USD ($)instrument | Oct. 31, 2015USD ($)instrument | Oct. 29, 2016USD ($)instrument | Oct. 31, 2015USD ($)instrument | Jan. 30, 2016USD ($) | |
Derivative Contracts - Effect on Results of Operations (millions) | |||||
Amount remaining on unamortized hedged debt valuation gains | $ 6,000,000 | $ 20,000,000 | $ 6,000,000 | $ 20,000,000 | $ 15,000,000 |
Designated as Hedging Instrument | Interest Rate Swaps | |||||
Derivative Contracts - Effect on Results of Operations (millions) | |||||
Notional amount | 1,000,000,000 | 1,250,000,000 | 1,000,000,000 | 1,250,000,000 | |
Amount of ineffectiveness recognized | 0 | 0 | 0 | 0 | |
Not Designated as Hedging Instrument | Interest Rate Swaps | |||||
Derivative Contracts - Effect on Results of Operations (millions) | |||||
Notional amount | $ 250,000,000 | $ 1,000,000,000 | $ 250,000,000 | $ 1,000,000,000 | |
Number of derivative instruments | instrument | 1 | 2 | 1 | 2 |
Derivative Financial Instrume41
Derivative Financial Instruments - Derivative Contracts - Effect on Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Interest rate swaps | ||||
Derivative Contracts - Effect on Results of Operations (millions) | ||||
Net interest expense | $ (5) | $ (9) | $ (21) | $ (28) |
Share Repurchase - Narrative (D
Share Repurchase - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | 58 Months Ended | |
Nov. 23, 2016 | Oct. 29, 2016 | Nov. 23, 2016 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | Oct. 29, 2016 | |
Loss Contingencies [Line Items] | |||||||
Common stock repurchased (in shares) | 38.5 | 27.3 | |||||
Average price paid per share (in dollars per share) | $ 72.87 | $ 79.84 | |||||
Investment in shares repurchased | $ 2,807,000,000 | $ 2,182,000,000 | |||||
Prepayment for repurchase of common stock under accelerated share repurchase program | $ 350,000,000 | ||||||
Investment in shares repurchased and retired | 3,038,000,000 | $ 3,445,000,000 | |||||
Stock to be received upon settlement of ASR | $ (20,000,000) | ||||||
Shares delivered upon noncash settlement | 0.2 | 0.1 | |||||
Share Repurchase Program 2016 | |||||||
Loss Contingencies [Line Items] | |||||||
Authorized repurchase amount | 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | ||||
Share Repurchase Program 2015 | |||||||
Loss Contingencies [Line Items] | |||||||
Authorized repurchase amount | 10,000,000,000 | 10,000,000,000 | $ 10,000,000,000 | ||||
Common stock repurchased (in shares) | 133.1 | ||||||
Average price paid per share (in dollars per share) | $ 70.52 | ||||||
Investment in shares repurchased | $ 9,400,000,000 | ||||||
Prepayment for repurchase of common stock under accelerated share repurchase program | $ 350,000,000 | ||||||
Shares repurchased and retired | 3.4 | ||||||
Investment in shares repurchased and retired | $ 230,000,000 | ||||||
Stock to be received upon settlement of ASR | (20,000,000) | ||||||
Accelerated share repurchase included in other current assets | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Share Repurchase Program 2015 | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Authorized repurchase amount | 250,000,000 | 250,000,000 | 250,000,000 | ||||
Share Repurchase Program 2015 | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Authorized repurchase amount | $ 350,000,000 | 350,000,000 | $ 350,000,000 | ||||
Cash Investment | |||||||
Loss Contingencies [Line Items] | |||||||
Investment in shares repurchased | 12,000,000 | $ 3,000,000 | |||||
Prepaid Forward Contracts Market Value | |||||||
Loss Contingencies [Line Items] | |||||||
Aggregate market value | $ 13,000,000 | $ 7,000,000 | |||||
Subsequent Event | Share Repurchase Program 2015 | |||||||
Loss Contingencies [Line Items] | |||||||
Common stock repurchased (in shares) | 4.6 | ||||||
Investment in shares repurchased | $ 314,000,000 | ||||||
Shares repurchased and retired | 1.3 | ||||||
Prepayment amount returned | $ 36,000,000 | $ 36,000,000 | |||||
Accelerated share repurchase price per share (in dollars per share) | $ 67.67 |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Share Repurchases (excluding ASR) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Equity [Abstract] | ||
Total number of shares purchased | 38.5 | 27.3 |
Average price paid per share (in dollars per share) | $ 72.87 | $ 79.84 |
Total investment | $ 2,807 | $ 2,182 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in net cash provided by operations | $ 2,881 | $ 3,839 |
Increase in net cash required for financing activities | (4,558) | (3,003) |
Accounting Standards Update 2016-09, Statutory Tax Withholding Component | New Accounting Pronouncement, Early Adoption, Effect | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Excess tax benefits | $ 18 | |
Increase in net cash provided by operations | 79 | |
Increase in net cash required for financing activities | $ 79 |
Pension and Other Benefits - Sc
Pension and Other Benefits - Schedule of Net Pension and Postretirement Health Care Benefits Expense (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Net Pension Benefits Expense | ||||
Service cost | $ 20 | $ 27 | $ 61 | $ 82 |
Interest cost | 34 | 38 | 103 | 115 |
Expected return on assets | (64) | (65) | (193) | (195) |
Amortization of losses | 12 | 20 | 37 | 62 |
Amortization of prior service cost | (2) | (3) | (8) | (9) |
Settlement charges | 0 | 1 | 0 | 3 |
Total | $ 0 | $ 18 | $ 0 | $ 58 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - Forward Contracts - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Pretax gain (loss) | $ (3,000,000) | $ (2,000,000) | $ (2,000,000) | $ 2,000,000 | |
Investments | $ 0 | $ 0 | |||
Shares of common stock | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 |
Cash investment | $ 17,000,000 | $ 18,000,000 | $ 17,000,000 | $ 18,000,000 | $ 18,000,000 |
Share price (in dollars per share) | $ 41.11 | $ 41.11 | $ 41.11 | ||
Contractual fair value | $ 28,000,000 | $ 34,000,000 | $ 28,000,000 | $ 34,000,000 | $ 32,000,000 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive (Loss) / Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 12,957 | $ 13,997 | ||
Ending balance | $ 11,069 | $ 13,256 | 11,069 | 13,256 |
Net amount of taxes | 311 | $ 249 | 910 | 1,006 |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (19) | |||
Other comprehensive income before reclassifications | 0 | |||
Amounts reclassified from AOCI | 3 | |||
Ending balance | (16) | (16) | ||
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] | ||||
Beginning balance | (22) | |||
Other comprehensive income before reclassifications | 2 | |||
Amounts reclassified from AOCI | 0 | |||
Ending balance | (20) | (20) | ||
Pension and Other Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (588) | |||
Other comprehensive income before reclassifications | 3 | |||
Amounts reclassified from AOCI | 14 | |||
Ending balance | (571) | (571) | ||
Pension and Other Benefits | Amount reclassified from other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Net amount of taxes | 9 | |||
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (629) | $ (599) | ||
Other comprehensive income before reclassifications | 5 | |||
Amounts reclassified from AOCI | 17 | |||
Ending balance | $ (607) | $ (607) |
Segment Reporting - Business Se
Segment Reporting - Business Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Segment Reporting [Abstract] | ||||
Sales | $ 16,441 | $ 17,613 | $ 48,805 | $ 52,159 |
Cost of sales | 11,471 | 12,440 | 33,757 | 36,402 |
Gross margin | 4,970 | 5,173 | 15,048 | 15,757 |
Selling, general and administrative expenses | 3,343 | 3,650 | 9,741 | 10,533 |
Depreciation and amortization | 570 | 561 | 1,686 | 1,651 |
Segment profit | 1,057 | 962 | 3,621 | 3,573 |
Impairments | 0 | (39) | 0 | (39) |
Restructuring costs | 0 | (21) | 0 | (135) |
Pharmacy transaction related costs | 4 | 0 | ||
Data breach related costs | (26) | (38) | ||
Earnings from continuing operations before interest expense and income taxes | 1,061 | 876 | 3,621 | 3,361 |
Net interest expense | 142 | 151 | 864 | 455 |
Earnings from continuing operations before income taxes | $ 919 | $ 725 | $ 2,757 | $ 2,906 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Assets to Total Assets (Details) - USD ($) $ in Millions | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Segment Reporting Information 2 [Line Items] | |||
Total assets | $ 38,603 | $ 40,262 | $ 41,451 |
Assets of discontinued operations | |||
Segment Reporting Information 2 [Line Items] | |||
Total assets | 79 | 397 | 493 |
Segment assets | |||
Segment Reporting Information 2 [Line Items] | |||
Total assets | 38,524 | 39,845 | 40,903 |
Unallocated assets | |||
Segment Reporting Information 2 [Line Items] | |||
Total assets | $ 0 | $ 20 | $ 55 |