Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 07, 2019 | Aug. 04, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | TARGET CORP | ||
Entity Central Index Key | 0000027419 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 42,763,636,334 | ||
Entity Common Stock, Shares Outstanding | 516,333,213 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Feb. 02, 2019 | Feb. 03, 2018 | [1] | Jan. 28, 2017 | [1] | ||
Total revenue | $ 75,356 | $ 72,714 | $ 70,271 | |||
Cost of sales | 53,299 | 51,125 | 49,145 | |||
Selling, general and administrative expenses | 15,723 | 15,140 | 14,217 | |||
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 2,224 | 2,225 | 2,045 | |||
Operating income | 4,110 | 4,224 | 4,864 | |||
Net interest expense | 461 | 653 | 991 | |||
Net other (income) / expense | (27) | (59) | (88) | |||
Earnings from continuing operations before income taxes | 3,676 | 3,630 | 3,961 | |||
Provision for income taxes | 746 | 722 | 1,295 | |||
Net earnings from continuing operations | 2,930 | 2,908 | 2,666 | |||
Discontinued operations, net of tax | 7 | 6 | 68 | |||
Net earnings | $ 2,937 | $ 2,914 | $ 2,734 | |||
Basic earnings per share | ||||||
Continuing operations (in dollars per share) | [2] | $ 5.54 | $ 5.32 | $ 4.61 | ||
Discontinued operations (in dollars per share) | [2] | 0.01 | 0.01 | 0.12 | ||
Net earnings per share (in dollars per share) | [2] | 5.55 | 5.32 | 4.73 | ||
Diluted earnings per share | ||||||
Continuing operations (in dollars per share) | [2] | 5.50 | 5.29 | 4.58 | ||
Discontinued operations (in dollars per share) | [2] | 0.01 | 0.01 | 0.12 | ||
Net earnings per share (in dollars per share) | [2] | $ 5.51 | $ 5.29 | $ 4.69 | ||
Weighted average common shares outstanding | ||||||
Basic (in shares) | 528.6 | 546.8 | 577.6 | |||
Diluted (in shares) | 533.2 | 550.3 | 582.5 | |||
Antidilutive shares (in shares) | 0 | 4.1 | 0.1 | |||
Sales | ||||||
Total revenue | $ 74,433 | $ 71,786 | $ 69,414 | |||
Other revenue | ||||||
Total revenue | $ 923 | $ 928 | $ 857 | |||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. | |||||
[2] | Per share amounts may not foot due to rounding |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 02, 2019 | Feb. 03, 2018 | [1] | Jan. 28, 2017 | [1] | |
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 2,937 | $ 2,914 | $ 2,734 | ||
Other comprehensive (loss) / income, net of tax | |||||
Pension and other benefit liabilities, net of tax | (52) | 2 | (13) | ||
Currency translation adjustment and cash flow hedges, net of tax | (6) | 6 | 4 | ||
Other comprehensive (loss) / income | (58) | 8 | (9) | ||
Comprehensive income | $ 2,879 | $ 2,922 | $ 2,725 | ||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | [1] |
Assets | |||
Cash and cash equivalents | $ 1,556 | $ 2,643 | |
Inventory | 9,497 | 8,597 | |
Other current assets | 1,466 | 1,300 | |
Total current assets | 12,519 | 12,540 | |
Property and equipment | |||
Land | 6,064 | 6,095 | |
Buildings and improvements | 29,240 | 28,131 | |
Fixtures and equipment | 5,912 | 5,623 | |
Computer hardware and software | 2,544 | 2,645 | |
Construction-in-progress | 460 | 440 | |
Accumulated depreciation | (18,687) | (18,398) | |
Property and equipment, net | 25,533 | 24,536 | |
Operating lease assets | 1,965 | 1,884 | |
Other noncurrent assets | 1,273 | 1,343 | |
Total assets | 41,290 | 40,303 | |
Liabilities and shareholders' investment | |||
Accounts payable | 9,761 | 8,677 | |
Accrued and other current liabilities | 4,201 | 4,094 | |
Current portion of long-term debt and other borrowings | 1,052 | 281 | |
Total current liabilities | 15,014 | 13,052 | |
Long-term debt and other borrowings | 10,223 | 11,117 | |
Noncurrent operating lease liabilities | 2,004 | 1,924 | |
Deferred income taxes | 972 | 693 | |
Other noncurrent liabilities | 1,780 | 1,866 | |
Total noncurrent liabilities | 14,979 | 15,600 | |
Shareholders' investment | |||
Common stock | 43 | 45 | |
Additional paid-in capital | 6,042 | 5,858 | |
Retained earnings | 6,017 | 6,495 | |
Accumulated other comprehensive loss | (805) | (747) | |
Total shareholders' investment | 11,297 | 11,651 | |
Total liabilities and shareholders' investment | $ 41,290 | $ 40,303 | |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common Stock, par value (in dollars per share) | $ 0.0833 | $ 0.0833 |
Common Stock, shares issued | 517,761,600 | 541,681,670 |
Common Stock, shares outstanding | 517,761,600 | 541,681,670 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||
Operating activities | ||||||
Net earnings | $ 2,937 | $ 2,914 | [1] | $ 2,734 | [1] | |
Earnings from discontinued operations, net of tax | 7 | 6 | [1] | 68 | [1] | |
Net earnings from continuing operations | 2,930 | 2,908 | [1] | 2,666 | [1] | |
Adjustments to reconcile net earnings to cash provided by operations: | ||||||
Depreciation and amortization | 2,474 | 2,476 | [1] | 2,318 | [1] | |
Share-based compensation expense | 132 | 112 | [1] | 113 | [1] | |
Deferred income taxes | 322 | (188) | [1] | 40 | [1] | |
Loss on debt extinguishment | 0 | 123 | [1] | 422 | [1] | |
Noncash losses / (gains) and other, net | 95 | 208 | [1] | (11) | [1] | |
Changes in operating accounts: | ||||||
Inventory | (900) | (348) | [1] | 293 | [1] | |
Other assets | (299) | (156) | [1] | 56 | [1] | |
Accounts payable | 1,127 | 1,307 | [1] | (166) | [1] | |
Accrued and other liabilities | 89 | 419 | [1] | (394) | [1] | |
Cash provided by operating activities—continuing operations | 5,970 | 6,861 | [1] | 5,337 | [1] | |
Cash provided by operating activities—discontinued operations | 3 | 74 | [1] | 107 | [1] | |
Cash provided by operations | 5,973 | 6,935 | [1] | 5,444 | [1] | |
Investing activities | ||||||
Expenditures for property and equipment | (3,516) | (2,533) | [1] | (1,547) | [1] | |
Proceeds from disposal of property and equipment | 85 | 31 | [1] | 46 | [1] | |
Cash paid for acquisitions, net of cash assumed | 0 | (518) | [1] | 0 | [1] | |
Other investments | 15 | (55) | [1] | 28 | [1] | |
Cash required for investing activities | (3,416) | (3,075) | [1] | (1,473) | [1] | |
Financing activities | ||||||
Additions to long-term debt | 0 | 739 | [1] | 1,977 | [1] | |
Reductions of long-term debt | (281) | (2,192) | [1] | (2,649) | [1] | |
Dividends paid | (1,335) | (1,338) | [1] | (1,348) | [1] | |
Repurchase of stock | (2,124) | (1,046) | [1] | (3,706) | [1] | |
Stock option exercises | 96 | 108 | [1] | 221 | [1] | |
Cash required for financing activities | (3,644) | (3,729) | [1] | (5,505) | [1] | |
Net (decrease) / increase in cash and cash equivalents | (1,087) | 131 | [1] | (1,534) | [1] | |
Cash and cash equivalents at beginning of period | [1] | 2,643 | 2,512 | 4,046 | ||
Cash and cash equivalents at end of period | 1,556 | 2,643 | [1] | 2,512 | [1] | |
Supplemental information | ||||||
Interest paid, net of capitalized interest | 476 | 678 | [1] | 999 | [1] | |
Income taxes paid | 373 | 934 | [1] | 1,514 | [1] | |
Leased assets obtained in exchange for new finance lease liabilities | 130 | 139 | [1] | 252 | [1] | |
Leased assets obtained in exchange for new operating lease liabilities | $ 246 | $ 212 | [1] | $ 148 | [1] | |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 02, 2019 | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Beginning balance (in shares) | 541,681,670 | 541,681,670 | ||||||||||||
Beginning balance | $ 11,651 | [1] | $ 10,915 | $ 11,651 | [1] | $ 10,915 | $ 12,965 | |||||||
Net earnings | $ 799 | $ 718 | $ 1,087 | $ 678 | 2,937 | 2,914 | [1] | 2,734 | [1] | |||||
Other comprehensive income / (loss) | (58) | 8 | [1] | (9) | [1] | |||||||||
Dividends declared | $ (1,347) | $ (1,356) | $ (1,359) | |||||||||||
Repurchase of stock (in shares) | (27,200,000) | (17,600,000) | (50,900,000) | |||||||||||
Repurchase of stock | $ (2,070) | $ (1,027) | $ (3,686) | |||||||||||
Stock options and awards | $ 184 | $ 197 | 313 | |||||||||||
Ending balance (in shares) | 517,761,600 | 541,681,670 | 517,761,600 | 541,681,670 | ||||||||||
Ending balance | $ 11,297 | $ 11,651 | [1] | $ 11,297 | $ 11,651 | [1] | $ 10,915 | |||||||
Adoption of ASC Topic 842 (Leases) | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Adoption of ASU | [1] | $ (43) | ||||||||||||
Common Stock | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Beginning balance (in shares) | 541,700,000 | 556,200,000 | 541,700,000 | 556,200,000 | 602,200,000 | |||||||||
Beginning balance | $ 45 | $ 46 | $ 45 | $ 46 | $ 50 | |||||||||
Repurchase of stock (in shares) | (27,200,000) | (17,600,000) | (50,900,000) | |||||||||||
Repurchase of stock | $ (2) | $ (1) | $ (4) | |||||||||||
Stock options and awards (in shares) | 3,300,000 | 3,100,000 | 4,900,000 | |||||||||||
Stock options and awards | $ 0 | $ 0 | $ 0 | |||||||||||
Ending balance (in shares) | 517,800,000 | 541,700,000 | 517,800,000 | 541,700,000 | 556,200,000 | |||||||||
Ending balance | $ 43 | $ 45 | $ 43 | $ 45 | $ 46 | |||||||||
Additional Paid-in Capital | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Beginning balance | 5,858 | 5,661 | 5,858 | 5,661 | 5,348 | |||||||||
Stock options and awards | 184 | 197 | 313 | |||||||||||
Ending balance | 6,042 | 5,858 | 6,042 | 5,858 | 5,661 | |||||||||
Retained Earnings As Adjusted | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Beginning balance | [1] | 6,495 | 5,846 | 6,495 | 5,846 | 8,196 | ||||||||
Net earnings | [1] | 2,937 | 2,914 | 2,734 | ||||||||||
Dividends declared | [1] | (1,347) | (1,356) | (1,359) | ||||||||||
Repurchase of stock | [1] | (2,068) | (1,026) | (3,682) | ||||||||||
Reclassification of tax effects to Retained Earnings | [1] | 117 | ||||||||||||
Ending balance | [1] | 6,017 | 6,495 | 6,017 | 6,495 | 5,846 | ||||||||
Accumulated Other Comprehensive (Loss) / Income | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Beginning balance | $ (747) | $ (638) | (747) | (638) | (629) | |||||||||
Other comprehensive income / (loss) | (58) | 8 | (9) | |||||||||||
Reclassification of tax effects to Retained Earnings | (117) | |||||||||||||
Ending balance | $ (805) | $ (747) | $ (805) | $ (747) | $ (638) | |||||||||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared per share (in dollars per share) | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.60 | $ 2.54 | $ 2.46 | $ 2.36 |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | Summary of Accounting Policies Organization We are a general merchandise retailer selling products to our guests through our stores and digital channels. 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 or through our digital channels. Nearly all of our revenues are generated in the United States (U.S.). The vast majority of our long-lived assets are located within the U.S. Consolidation The consolidated financial statements include the balances of Target and its subsidiaries after elimination of intercompany balances and transactions. All material subsidiaries are wholly owned. We consolidate variable interest entities where it has been determined that Target is the primary beneficiary of those entities' operations. Use of estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions affecting reported amounts in the consolidated financial statements and accompanying notes. Actual results may differ significantly from those estimates. Fiscal year Our fiscal year ends on the Saturday nearest January 31. Unless otherwise stated, references to years in this report relate to fiscal years, rather than to calendar years. Fiscal 2018 ended February 2, 2019 , and consisted of 52 weeks. Fiscal 2017 ended February 3, 2018 , and consisted of 53 weeks. Fiscal 2016 ended January 28, 2017 , and consisted of 52 weeks. Fiscal 2019 will end February 1, 2020, and will consist of 52 weeks. Accounting policies Our accounting policies are disclosed in the applicable Notes to the Consolidated Financial Statements. Certain prior-year amounts have been reclassified to conform to the current year presentation. Note 2 provides information about our adoption of new accounting standards for revenue recognition, leases, and pensions. |
Accounting Standards Adopted
Accounting Standards Adopted | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Adopted | Accounting Standards Adopted Revenue Recognition We adopted Accounting Standards Update (ASU) No. 2014-09— Revenue from Contracts with Customers (Topic 606) , as amended, as of February 4, 2018, using the full retrospective approach. The new standard did not materially affect our consolidated net earnings, financial position, or cash flows. The new standard resulted in minor changes to the timing of recognition of revenues for certain promotional gift card programs. For 2017 and 2016, we reclassified profit-sharing income under our credit card program agreement to Other Revenue from Selling, General and Administrative Expenses (SG&A Expenses). In addition, we reclassified certain advertising, rental, and other miscellaneous revenues, none of which was individually significant, from Sales and SG&A Expenses to Other Revenue. Leases We adopted ASU No. 2016-02— Leases (Topic 842) , as amended, as of February 4, 2018, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. In addition, we elected the hindsight practical expedient to determine the lease term for existing leases. Our election of the hindsight practical expedient resulted in the shortening of lease terms for certain existing leases and the useful lives of corresponding leasehold improvements. In our application of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our overall real estate strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $1.3 billion and $1.4 billion respectively, as of February 4, 2018. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as an adjustment to retained earnings. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. Pensions In 2018, we adopted ASU No. 2017-07— Compensation – Retirement Benefits (Topic 715) using the full retrospective approach. The new standard requires employers to disaggregate and present separately the current service cost component from the other components of net benefit cost within the Consolidated Statement of Operations. For 2017 and 2016, we reclassified $(59) million and $(88) million , respectively, of non-service cost components of net benefit cost to Net Other (Income) / Expense from SG&A Expenses on our Consolidated Statements of Operations. Effect of Accounting Standards Adoption on Consolidated Statement of Operations 2017 As Previously Reported Effect of the Adoption of ASC Topic 606 (Revenue Recognition) ASC Topic 842 (Leases) ASU 2017-07 (Pension) (millions, except per share data) (unaudited) 2017 As Adjusted Sales $ 71,879 $ (93 ) (a) $ — $ — $ 71,786 Other revenue — 928 (a) — — 928 Total revenue 71,879 835 — — 72,714 Cost of sales 51,125 — — — 51,125 Selling, general and administrative expenses 14,248 835 (a) (2 ) (b) 59 (c) 15,140 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,194 — 31 (b) — 2,225 Operating income 4,312 — (29 ) (59 ) 4,224 Net interest expense 666 — (13 ) (b) — 653 Net other (income) / expense — — — (59 ) (c) (59 ) Earnings from continuing operations before income taxes 3,646 — (16 ) — 3,630 Provision for income taxes 718 (2 ) 6 — 722 Net earnings from continuing operations 2,928 2 (22 ) — 2,908 Discontinued operations, net of tax 6 — — — 6 Net earnings $ 2,934 $ 2 $ (22 ) $ — $ 2,914 Basic earnings per share Continuing operations $ 5.35 $ 5.32 Discontinued operations 0.01 0.01 Net earnings per share $ 5.36 $ 5.32 Diluted earnings per share Continuing operations $ 5.32 $ 5.29 Discontinued operations 0.01 0.01 Net earnings per share $ 5.33 $ 5.29 Note: 2017 was a 53-week year. Per share amounts may not foot due to rounding. The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. Footnote explanations are provided on page 42. Effect of Accounting Standards Adoption on Consolidated Statement of Operations 2016 As Previously Reported Effect of the Adoption of ASC Topic 606 (Revenue Recognition) ASC ASU 2017-07 (Pension) (millions, except per share data) (unaudited) 2016 As Adjusted Sales $ 69,495 $ (80 ) (a) $ — $ — $ 69,414 Other revenue — 857 (a) — — 857 Total revenue 69,495 777 — — 70,271 Cost of sales 49,145 — — — 49,145 Selling, general and administrative expenses 13,356 777 (a) (4 ) (b) 88 (c) 14,217 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,025 — 20 (b) — 2,045 Operating income 4,969 — (16 ) (88 ) 4,864 Net interest expense 1,004 — (13 ) (b) — 991 Net other (income) / expense — — — (88 ) (c) (88 ) Earnings from continuing operations before income taxes 3,965 — (3 ) — 3,961 Provision for income taxes 1,296 — (1 ) — 1,295 Net earnings from continuing operations 2,669 — (2 ) — 2,666 Discontinued operations, net of tax 68 — — — 68 Net earnings $ 2,737 $ — $ (2 ) $ — $ 2,734 Basic earnings per share Continuing operations $ 4.62 $ 4.61 Discontinued operations 0.12 0.12 Net earnings per share $ 4.74 $ 4.73 Diluted earnings per share Continuing operations $ 4.58 $ 4.58 Discontinued operations 0.12 0.12 Net earnings per share $ 4.70 $ 4.69 Note: Per share amounts may not foot due to rounding. The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. (a) For 2017 and 2016, we reclassified $694 million and $663 million , respectively, of profit-sharing income under our credit card program agreement to Other Revenue from SG&A Expenses. In addition, we reclassified certain advertising, rental, and other miscellaneous revenues, none of which was individually significant, from Sales and SG&A Expenses to Other Revenue. (b) Relates to lease-term changes under the hindsight practical expedient. (c) Relates to non-service cost components reclassified to Net Other (Income) / Expense from SG&A Expenses. Effect of Accounting Standards Adoption on Consolidated Statement of Financial Position Effect of the Adoption of (millions) (unaudited) February 3, 2018 As Previously Reported ASC ASC February 3, 2018 As Adjusted Assets Cash and cash equivalents $ 2,643 $ — $ — $ 2,643 Inventory 8,657 (60 ) (a) — 8,597 Other current assets 1,264 60 (a) (24 ) (b) 1,300 Total current assets 12,564 — (24 ) 12,540 Property and equipment Land 6,095 — — 6,095 Buildings and improvements 28,396 — (265 ) (c) 28,131 Fixtures and equipment 5,623 — — 5,623 Computer hardware and software 2,645 — — 2,645 Construction-in-progress 440 — — 440 Accumulated depreciation (18,181 ) — (217 ) (c) (18,398 ) Property and equipment, net 25,018 — (482 ) 24,536 Operating lease assets — — 1,884 (d) 1,884 Other noncurrent assets 1,417 — (74 ) (e) 1,343 Total assets $ 38,999 $ — $ 1,304 $ 40,303 Liabilities and shareholders’ investment Accounts payable $ 8,677 $ — $ — $ 8,677 Accrued and other current liabilities 4,254 (14 ) (k) (146 ) (f) 4,094 Current portion of long-term debt and other borrowings 270 — 11 (g) 281 Total current liabilities 13,201 (14 ) (135 ) 13,052 Long-term debt and other borrowings 11,317 — (200 ) (g) 11,117 Noncurrent operating lease liabilities — — 1,924 (h) 1,924 Deferred income taxes 713 4 (24 ) 693 Other noncurrent liabilities 2,059 — (192 ) (i) 1,866 Total noncurrent liabilities 14,089 4 1,508 15,600 Shareholders’ investment Common stock 45 — — 45 Additional paid-in capital 5,858 — — 5,858 Retained earnings 6,553 10 (k) (69 ) (j) 6,495 Accumulated other comprehensive loss (747 ) — — (747 ) Total shareholders’ investment 11,709 10 (69 ) 11,651 Total liabilities and shareholders’ investment $ 38,999 $ — $ 1,304 $ 40,303 Note: The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. (a) Represents estimated merchandise returns, which were reclassified from Inventory to Other Current Assets. (b) Represents prepaid rent reclassified to Operating Lease Assets. (c) Represents impact of changes in finance lease terms and related leasehold improvements (net of accumulated depreciation) under the hindsight practical expedient and derecognition of approximately $135 million of non-Target owned properties that were consolidated under previously existing build-to-suit accounting rules. (d) Represents capitalization of operating lease assets and reclassification of leasehold acquisition costs, straight-line rent accrual, and tenant incentives. (e) Represents reclassification of leasehold acquisition costs to Operating Lease Assets. (f) Represents reclassification of straight-line rent accrual to Operating Lease Assets, partially offset by recognition of the current portion of operating lease liabilities. (g) Represents the impact of changes in financing lease terms for certain leases due to the election of the hindsight practical expedient. (h) Represents recognition of operating lease liabilities. (i) Represents derecognition of approximately $135 million of liabilities related to non-Target owned properties that were consolidated under previously existing build-to-suit accounting rules and reclassification of tenant incentives to Operating Lease Assets. (j) Represents the retained earnings impact of lease-term changes due to the use of hindsight, primarily from the shortening of lease terms for certain existing leases and useful lives of corresponding leasehold improvements. (k) Primarily represents the impact of a change in timing of revenue recognition for certain promotional gift card programs. |
Revenues
Revenues | 12 Months Ended |
Feb. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues General merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably credit card profit sharing income from our arrangement with TD Bank Group (TD). During 2018, we reclassified certain income streams, including credit card profit sharing income, to Other Revenue on our Consolidated Statements of Operations and conformed prior periods. Note 2 provides additional information. Revenues (millions) 2018 2017 2016 Apparel and accessories $ 15,004 $ 14,662 $ 14,304 Beauty and household essentials 17,726 17,025 16,550 Food and beverage 14,585 14,256 13,831 Hardlines 12,709 12,062 11,507 Home furnishings and décor 14,298 13,672 13,130 Other 111 109 92 Sales 74,433 71,786 69,414 Credit card profit sharing 673 694 663 Other 250 234 194 Other revenue 923 928 857 Total revenue $ 75,356 $ 72,714 $ 70,271 Merchandise sales – We record almost all retail store revenues at the point of sale. Digital channel originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Total revenues do not include sales tax because we are a pass-through conduit for collecting and remitting sales taxes. Generally, guests may return national brand merchandise within 90 days of purchase and owned and exclusive brands within one year of purchase. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of February 2, 2019 , February 3, 2018 , and January 28, 2017 , the liability for estimated returns was $116 million , $110 million , and $103 million , respectively. We have not historically had material adjustments to our returns estimates. We routinely enter into arrangements with vendors whereby we do not purchase or pay for merchandise until the merchandise is ultimately sold to a guest. Under the vast majority of these arrangements, which represent less than 5 percent of consolidated sales, we record revenue and related costs gross. We concluded that we are the principal in these transactions for a number of reasons, most notably because we 1) control the overall economics of the transactions, including setting the sales price and realizing the majority of cash flows from the sale, 2) control the relationship with the customer, and 3) are responsible for fulfilling the promise to provide goods to the customer. Merchandise received under these arrangements is not included in Inventory in our Consolidated Statements of Financial Position because the purchase and sale of this inventory are virtually simultaneous. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions. (millions) February 3, Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability February 2, Gift card liability $ 727 $ 645 $ (532 ) $ 840 (a) Net of estimated breakage. Guests receive a 5 percent discount on nearly all purchases and receive free shipping at Target.com when they use their Target Debit Card, Target Credit Card, or Target MasterCard (REDcards). The discount is included as a sales reduction in our Consolidated Statements of Operations and was $953 million , $933 million , and $899 million in 2018 , 2017 , and 2016 , respectively. Credit card profit sharing – We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other – Includes rental income, advertising, membership fees, and other miscellaneous revenues, none of which are individually significant. |
Cost of Sales and Selling, Gene
Cost of Sales and Selling, General and Administrative Expenses | 12 Months Ended |
Feb. 02, 2019 | |
Cost of Sales and Selling, General and Administrative Expenses [Abstract] | |
Cost of Sales and Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses The following table illustrates the primary items classified in each major expense category: Cost of Sales Selling, General and Administrative Expenses Total cost of products sold including • Freight expenses associated with moving merchandise from our vendors to and between our distribution centers and our retail stores • Vendor income that is not reimbursement of specific, incremental, and identifiable costs Inventory shrink Markdowns Outbound shipping and handling expenses associated with sales to our guests Payment term cash discounts Distribution center costs, including compensation and benefits costs and depreciation Import costs Compensation and benefit costs for stores and rd party bank issued Note: The classification of these expenses varies across the retail industry. |
Consideration Received from Ven
Consideration Received from Vendors | 12 Months Ended |
Feb. 02, 2019 | |
Consideration Received from Vendors | |
Consideration Received from Vendors | Consideration Received from Vendors We receive consideration for a variety of vendor-sponsored programs, such as volume rebates, markdown allowances, promotions, and advertising allowances and for our compliance programs, referred to as "vendor income." Additionally, under our compliance programs, vendors are charged for merchandise shipments that do not meet our requirements (violations), such as late or incomplete shipments. Substantially all consideration received is recorded as a reduction of Cost of Sales. We establish a receivable for vendor income that is earned but not yet received. Based on provisions of the agreements in place, this receivable is computed by estimating the amount earned when we have completed our performance. We perform detailed analyses to determine the appropriate level of the receivable in the aggregate. The majority of year-end receivables associated with these activities are collected within the following fiscal quarter. We have not historically had significant write-offs for these receivables. |
Advertising Costs
Advertising Costs | 12 Months Ended |
Feb. 02, 2019 | |
Advertising Costs | |
Advertising Costs | Advertising Costs Advertising costs, which primarily consist of newspaper circulars, digital advertisements, and media broadcast, are generally expensed at first showing or distribution of the advertisement. Advertising Costs (millions) 2018 2017 2016 Gross advertising costs $ 1,494 $ 1,476 $ 1,503 Vendor income — (19 ) (38 ) Net advertising costs $ 1,494 $ 1,457 $ 1,465 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
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) Classification Pricing Category February 2, February 3, Assets Short-term investments (a) Cash and Cash Equivalents Level 1 $ 769 $ 1,906 Prepaid forward contracts (b) Other Current Assets Level 1 19 23 Interest rate swaps (c) Other Noncurrent Assets Level 2 10 — Liabilities Interest rate swaps (c) Other Current Liabilities Level 2 3 — Interest rate swaps (c) Other Noncurrent Liabilities Level 2 — 6 (a) Carrying value approximates fair value because maturities are less than three months. (b) Initially valued at transaction price. Subsequently valued by reference to the market price of Target common stock. (c) Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). See Note 17 for additional information on interest rate swaps. Significant Financial Instruments not Measured at Fair Value (a) (millions) 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (b) $ 10,247 $ 10,808 $ 10,440 $ 11,155 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Feb. 02, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments with an original maturity of three months or less from the time of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. (millions) February 2, February 3, Cash $ 359 $ 337 Short-term investments 769 1,906 Receivables from third-party financial institutions for credit and debit card transactions 428 400 Cash and cash equivalents (a) $ 1,556 $ 2,643 (a) We have access to these funds without any significant restrictions, taxes or penalties. At February 2, 2019 and February 3, 2018 , we reclassified book overdrafts of $242 million and $358 million , respectively, to Accounts Payable and $25 million and $29 million , respectively, to Accrued and Other Current Liabilities. |
Inventory
Inventory | 12 Months Ended |
Feb. 02, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The vast majority of our inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Inventory cost includes the amount we pay to our suppliers to acquire inventory, freight costs incurred to deliver product to our distribution centers and stores, and import costs, reduced by vendor income and cash discounts. Distribution center operating costs, including compensation and benefits, are expensed in the period incurred. Inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Feb. 02, 2019 | |
Other Current Assets | |
Other Current Assets | Other Current Assets Other Current Assets (millions) February 2, February 3, 2018 As Adjusted Income tax and other receivables $ 632 $ 513 Vendor income receivable 468 416 Prepaid expenses 157 157 Other 209 214 Total $ 1,466 $ 1,300 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, including assets acquired under finance leases, is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Depreciation expense for 2018 , 2017 , and 2016 was $2,460 million , $2,462 million , and $2,305 million , respectively, including depreciation expense included in Cost of Sales. For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. Estimated Useful Lives Life (Years) Buildings and improvements 8-39 Fixtures and equipment 2-15 Computer hardware and software 2-7 We review long-lived assets for impairment when events or changes in circumstances—such as a decision to relocate or close a store or distribution center, make significant software changes or discontinue projects—indicate that the asset's carrying value may not be recoverable. We recognized impairment losses of $92 million , $91 million , and $43 million during 2018, 2017, and 2016, respectively. The impairment losses primarily resulted from planned or completed store closures, and for 2017, supply chain changes. For asset groups classified as held for sale, the carrying value is compared with the fair value less cost to sell. We estimate fair value by obtaining market appraisals, valuations from third party brokers, or other valuation techniques. Impairments are recorded in SG&A Expenses on the Consolidated Statements of Operations. |
Other Noncurrent Assets
Other Noncurrent Assets | 12 Months Ended |
Feb. 02, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Noncurrent Assets | Other Noncurrent Assets Other Noncurrent Assets (millions) February 2, February 3, 2018 As Adjusted Goodwill and intangible assets $ 699 $ 709 Company-owned life insurance investments, net of loans 380 383 Pension asset 11 46 Other 183 205 Total $ 1,273 $ 1,343 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill totaled $633 million and $630 million at February 2, 2019 and February 3, 2018 , respectively. In December 2017, we acquired Shipt, Inc., an online same-day delivery service platform, for approximately $550 million . We identified intangible assets of $40 million , primarily related to the tradename, customer relationships, and shopper lists, net tangible assets of $10 million , and goodwill of $500 million . The goodwill recorded primarily represents the value of significantly accelerating our ability to provide same-day delivery services to our guests. No impairments were recorded in 2018, 2017, or 2016 as a result of the annual goodwill impairment tests performed. Intangible assets, net of accumulated amortization, totaled $66 million and $79 million as of February 2, 2019, and February 3, 2018, respectively, primarily related to trademarks and customer relationships. We use both accelerated and straight-line methods to amortize definite-lived intangible assets over 4 to 15 years . The weighted average life of intangible assets was 8 years at February 2, 2019 . Amortization expense was $14 million , $14 million , and $13 million in 2018 , 2017 , and 2016 , respectively, and is estimated to be less than $15 million annually through 2023. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Accrued and Other Current Liabilities | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and Other Current Liabilities (millions) February 2, February 3, 2018 As Adjusted Wages and benefits $ 1,229 $ 1,209 Gift card liability, net of estimated breakage 840 727 Real estate, sales, and other taxes payable 601 670 Dividends payable 331 336 Current portion of operating lease liabilities 166 148 Workers' compensation and general liability (a) 142 141 Interest payable 62 67 Other 830 796 Total $ 4,201 $ 4,094 (a) We retain a substantial portion of the risk related to general liability and workers' compensation claims. We estimate our ultimate cost based on analysis of historical data and actuarial estimates. General liability and workers' compensation liabilities are recorded at our estimate of their net present value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We are exposed to claims and litigation arising in the ordinary course of business and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. When a loss is probable, we record an accrual based on the reasonably estimable loss or range of loss. When no point of loss is more likely than another, we record the lowest amount in the estimated range of loss and, if material, disclose the estimated range of loss. We do not record liabilities for reasonably possible loss contingencies, but do disclose a range of reasonably possible losses if they are material and we are able to estimate such a range. If we cannot provide a range of reasonably possible losses, we explain the factors that prevent us from determining such a range. Historically, adjustments to our estimates have not been material. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not believe that any of these identified claims or litigation will be material to our results of operations, cash flows, or financial condition. Commitments Purchase obligations, which include all legally binding contracts such as firm commitments for inventory purchases, merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments, and service contracts, were $992 million and $1,225 million at February 2, 2019 and February 3, 2018 , respectively. These purchase obligations are primarily due within three years and recorded as liabilities when goods are received or services rendered. Real estate obligations, which include legally binding minimum lease payments for leases signed but not yet commenced, and commitments for the purchase, construction, or remodeling of real estate and facilities, were $ 1,134 million and $ 1,110 million at February 2, 2019 and February 3, 2018 , respectively. Over half of these real estate obligations are due within five years , a portion of which are recorded as liabilities. We issue letters of credit and surety bonds in the ordinary course of business. Trade letters of credit totaled $1,746 million and $1,757 million at February 2, 2019 and February 3, 2018 , respectively, a portion of which are reflected in accounts payable. Standby letters of credit and surety bonds, relating primarily to insurance and regulatory requirements, totaled $403 million and $372 million at February 2, 2019 and February 3, 2018 , respectively. |
Commercial Paper and Long-Term
Commercial Paper and Long-Term Debt | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Commercial Paper and Long-Term Debt | Commercial Paper and Long-Term Debt At February 2, 2019 , the carrying value and maturities of our debt portfolio were as follows: Debt Maturities February 2, 2019 (dollars in millions) Rate (a) Balance Due 2019-2023 3.4 % $ 3,207 Due 2024-2028 3.3 2,179 Due 2029-2033 6.6 561 Due 2034-2038 6.8 1,109 Due 2039-2043 4.0 1,465 Due 2044-2048 3.7 1,726 Total notes and debentures 4.1 10,247 Swap valuation adjustments 7 Finance lease liabilities 1,021 Less: Amounts due within one year (1,052 ) Long-term debt and other borrowings $ 10,223 (a) Reflects the weighted average stated interest rate as of year-end. Required Principal Payments (millions) 2019 2020 2021 2022 2023 Total required principal payments $ 1,002 $ 1,094 $ 1,056 $ 63 $ — In October 2017, we issued unsecured fixed rate debt of $750 million at 3.9 percent that matures in November 2047. In addition to debt repaid at its maturity during 2017, during October 2017, we repurchased $344 million of debt before its maturity at a market value of $463 million . We recognized a loss on early retirement of approximately $123 million , which was recorded in Net Interest Expense in our Consolidated Statements of Operations. In April 2016, we issued unsecured fixed rate debt of $1 billion at 2.5 percent that matures in April 2026 and $1 billion at 3.625 percent that matures in April 2046. In addition to debt repaid at its maturity during 2016, during the first half of 2016, we repurchased $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 . We obtain short-term financing from time to time under our commercial paper program. Commercial Paper (dollars in millions) 2018 2017 2016 Maximum daily amount outstanding during the year $ 658 $ — $ 89 Average amount outstanding during the year 63 — 1 Amount outstanding at year-end — — — Weighted average interest rate 2.00 % — % 0.43 % In October 2018, we extended a committed $2.5 billion revolving credit facility by one year to October 2023. No balances were outstanding under our credit facility at any time during 2018 , 2017 , or 2016. Substantially all of our outstanding borrowings are senior, unsecured obligations. Most of our long-term debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants, which have no practical effect on our ability to pay dividends. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Feb. 02, 2019 | |
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. Note 7 provides the fair value and classification of these instruments. During 2018, we entered into two interest rate swaps, each with a notional amount of $250 million , under which we pay a variable rate and receive a fixed rate. We designated these swaps as fair value hedges. Under the swap agreements, we pay a floating rate equal to 1-month London Interbank Offered Rate (LIBOR) and receive a weighted average fixed rate of 2.9 percent . The agreements have a weighted average remaining maturity of 6.3 years. Under the two previously existing swap agreements, which mature during 2019, we pay a floating rate equal to 3-month LIBOR and receive a weighted average fixed rate of 1.8 percent . With the addition of the two swaps entered into during 2018, as of February 2, 2019 , four interest rate swaps with notional amounts totaling $1,500 million were designated as fair value hedges. As of February 3, 2018 , two interest rate swaps with notional amounts totaling $1,000 million were designated as fair value hedges. No ineffectiveness was recognized in 2018 or 2017 . $10 million of interest rate swap-related assets were classified within Other Noncurrent Assets and $3 million of interest rate swap-related liabilities were classified within Other Current Liabilities as of February 2, 2019. $6 million of designated interest rate swap-related liabilities were classified within Other Noncurrent Liabilities as of February 3, 2018. We recorded expense of $3 million during 2018 and income of $9 million and $24 million during 2017 and 2016, respectively, within Net Interest Expense on our Consolidated Statements of Operations related to periodic payments, valuation adjustments, and amortization of gains or losses on our interest rate swaps. |
Leases
Leases | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease certain retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores. Leases (millions) Classification February 2, February 3, Assets Operating Operating Lease Assets $ 1,965 $ 1,884 Finance Buildings and Improvements, net of Accumulated Depreciation (a) 872 836 Total leased assets $ 2,837 $ 2,720 Liabilities Current Operating Accrued and Other Current Liabilities $ 166 $ 148 Finance Current Portion of Long-term Debt and Other Borrowings 53 80 Noncurrent Operating Noncurrent Operating Lease Liabilities 2,004 1,924 Finance Long-term Debt and Other Borrowings 968 885 Total lease liabilities $ 3,191 $ 3,037 Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the incremental borrowing rate on January 31, 2016, for operating leases that commenced prior to that date. (a) Finance lease assets are recorded net of accumulated amortization of $371 million and $317 million as of February 2, 2019 and February 3, 2018, respectively. Lease Cost (millions) Classification 2018 2017 2016 Operating lease cost (a) SG&A Expenses $ 251 $ 221 $ 199 Finance lease cost Amortization of leased assets Depreciation and Amortization (b) 65 63 87 Interest on lease liabilities Net Interest Expense 42 42 36 Sublease income (c) Other Revenue (11 ) (9 ) (7 ) Net lease cost $ 347 $ 317 $ 315 (a) Includes short-term leases and variable lease costs, which are immaterial. (b) Supply chain-related amounts are included in Cost of Sales. (c) Sublease income excludes rental income from owned properties of $47 million for 2018, 2017, and 2016, which is included in Other Revenue. Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2019 $ 245 $ 98 $ 343 2020 238 98 336 2021 232 98 330 2022 226 99 325 2023 217 94 311 After 2023 1,746 974 2,720 Total lease payments $ 2,904 $ 1,461 $ 4,365 Less: Interest 734 440 Present value of lease liabilities $ 2,170 $ 1,021 (a) Operating lease payments include $778 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $341 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Finance lease payments include $127 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $193 million of legally binding minimum lease payments for leases signed but not yet commenced. Lease Term and Discount Rate February 2, February 3, Weighted average remaining lease term (years) Operating leases 14.2 15.2 Finance leases 15.4 15.4 Weighted average discount rate Operating leases 3.91 % 3.88 % Finance leases 4.64 % 4.64 % Other Information (millions) 2018 2017 2016 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 231 $ 198 $ 188 Operating cash flows from finance leases 45 42 36 Financing cash flows from finance leases 80 45 94 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In December 2017, the U.S. government enacted the Tax Cuts and Jobs Act tax reform legislation (the Tax Act), which among other matters reduced the U.S. corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. In 2017, we recorded a provisional $343 million net tax benefit primarily related to the remeasurement of certain deferred tax assets and liabilities, including $372 million of benefit from the new lower rate, partially offset by $29 million of deferred income tax expense from our foreign operations. During 2018, we completed our Tax Act accounting and recorded adjustments to previously-recorded provisional amounts, resulting in a $36 million tax benefit primarily related to the remeasurement of deferred tax assets and liabilities. Beginning with 2018, we are subject to a new tax on global intangible low-taxed income that is imposed on foreign earnings. We have made an accounting election to record this tax as a period cost and thus have not adjusted any of the deferred tax assets or liabilities of our foreign subsidiaries for the new tax. Net impacts of this new tax were immaterial and are included in our provision for income taxes for 2018. Earnings from continuing operations before income taxes were $3,676 million , $3,630 million , and $3,961 million during 2018 , 2017 , and 2016 , respectively, including $734 million , $722 million , and $336 million earned by our foreign entities subject to tax outside of the U.S. Tax Rate Reconciliation – Continuing Operations 2018 2017 As Adjusted 2016 As Adjusted Federal statutory rate 21.0 % 33.7 % 35.0 % State income taxes, net of the federal tax benefit 3.6 2.2 2.7 International (1.3 ) (4.6 ) (2.6 ) Tax Act (a) (1.0 ) (9.5 ) — Excess tax benefit related to share-based payments (0.3 ) (0.1 ) (0.6 ) Federal tax credits (1.1 ) (0.8 ) (0.7 ) Other (0.6 ) (1.0 ) (1.1 ) Effective tax rate 20.3 % 19.9 % 32.7 % (a) Represents the discrete benefit of remeasuring our net deferred tax liabilities at the new lower U.S. corporate income tax rate. Provision for Income Taxes (millions) 2018 2017 As Adjusted 2016 As Adjusted Current: Federal $ 257 $ 746 $ 1,108 State 116 105 141 International 51 59 6 Total current 424 910 1,255 Deferred: Federal 263 (229 ) 20 State 57 27 21 International 2 14 (1 ) Total deferred 322 (188 ) 40 Total provision $ 746 $ 722 $ 1,295 Net Deferred Tax Asset / (Liability) (millions) February 2, February 3, 2018 As Adjusted Gross deferred tax assets: Accrued and deferred compensation $ 248 $ 262 Accruals and reserves not currently deductible 181 162 Self-insured benefits 114 109 Deferred occupancy income 157 164 Leased assets 92 87 Other 40 42 Total gross deferred tax assets 832 826 Gross deferred tax liabilities: Property and equipment (1,557 ) (1,264 ) Inventory (140 ) (130 ) Other (95 ) (91 ) Total gross deferred tax liabilities (1,792 ) (1,485 ) Total net deferred tax liability $ (960 ) $ (659 ) Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year the temporary differences are expected to be recovered or settled. Tax rate changes affecting deferred tax assets and liabilities are recognized at the enactment date. We recognized a net tax benefit of $36 million and $372 million in 2018 and 2017, respectively, primarily because we remeasured our net deferred tax liabilities using the new lower U.S. corporate tax rate. Beginning in 2017, due to changes effected by the Tax Act and other reasons, we have not asserted indefinite reinvestment in our foreign operations. Because of this change, we recorded a deferred tax charge of $29 million during 2017. We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S. Internal Revenue Service has completed exams on the U.S. federal income tax returns for years 2015 and prior. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before 2009. Reconciliation of Liability for Unrecognized Tax Benefits (millions) 2018 2017 2016 Balance at beginning of period $ 325 $ 153 $ 153 Additions based on tax positions related to the current year 58 112 12 Additions for tax positions of prior years 10 142 6 Reductions for tax positions of prior years (91 ) (71 ) (16 ) Settlements (2 ) (11 ) (2 ) Balance at end of period $ 300 $ 325 $ 153 If we were to prevail on all unrecognized tax benefits recorded, $252 million of the $300 million reserve would benefit the effective tax rate. In addition, the reversal of accrued penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. During the years ended February 2, 2019 , February 3, 2018 , and January 28, 2017 , we recorded an expense / (benefit) from accrued penalties and interest of $3 million , $(12) million , and $1 million , respectively. As of February 2, 2019 , February 3, 2018 , and January 28, 2017 total accrued interest and penalties were $32 million , $29 million , and $45 million , respectively. It is reasonably possible that the amount of the unrecognized tax benefits with respect to our other unrecognized tax positions will increase or decrease during the next twelve months ; however, an estimate of the amount or range of the change cannot be made at this time. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities Other Noncurrent Liabilities (millions) February 2, February 3, 2018 As Adjusted Deferred occupancy income (a) $ 570 $ 600 Deferred compensation 472 503 Income tax 312 332 Workers' compensation and general liability 281 278 Pension benefits 40 41 Other 105 112 Total $ 1,780 $ 1,866 (a) To be amortized evenly through 2038. |
Share Repurchase
Share Repurchase | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase We periodically repurchase shares of our common stock under a board-authorized repurchase program through a combination of open market transactions, accelerated share repurchase (ASR) arrangements and other privately negotiated transactions with financial institutions. In an ASR arrangement, in exchange for an up-front payment, we receive an initial delivery of shares of our common stock and at settlement may receive additional shares, cash, or a combination of both. The total number of shares ultimately repurchased and, therefore, the average repurchase price paid per share, is determined upon settlement of the ASR based on the volume-weighted average price of our common stock during the term of the contract, less an agreed-upon discount. We retire shares in the period they are received and account for the up-front payment as a reduction to shareholders’ equity. Share Repurchases (millions, except per share data) 2018 2017 2016 Total number of shares purchased 27.2 17.6 50.9 Average price paid per share $ 75.88 $ 58.44 $ 72.35 Total investment $ 2,067 $ 1,026 $ 3,686 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We maintain a long-term incentive plan (the Plan) for key team members and non-employee members of our Board of Directors. The Plan allows us to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards, or a combination of awards (collectively, share-based awards). The number of unissued common shares reserved for future grants under the Plan was 19.3 million and 24.5 million at February 2, 2019 and February 3, 2018 , respectively. Compensation expense associated with share-based awards is recognized on a straight-line basis over the required service period and reflects estimated forfeitures. Share-based compensation expense recognized in SG&A Expenses was $134 million , $115 million , and $116 million in 2018 , 2017 , and 2016 , respectively. The related income tax benefit was $26 million , $26 million , and $43 million in 2018 , 2017 , and 2016 , respectively. Restricted Stock Units We issue restricted stock units and performance-based restricted stock units generally with three -year cliff or four -year graduated vesting from the grant date (collectively restricted stock units) to certain team members. The final number of shares issued under performance-based restricted stock units is based on our total shareholder return relative to a retail peer group over a three -year performance period. We also regularly issue restricted stock units to our Board of Directors, which vest quarterly over a one -year period and are settled in shares of Target common stock upon departure from the Board. The fair value for restricted stock units is calculated based on the stock price on the date of grant, incorporating an analysis of the total shareholder return performance measure where applicable. The weighted average grant date fair value for restricted stock units was $72.65 , $56.19 , and $74.05 in 2018 , 2017 , and 2016 , respectively. Restricted Stock Unit Activity Total Nonvested Units Restricted Stock (a) Grant Date Fair Value (b) February 3, 2018 3,763 $ 64.35 Granted 2,269 72.65 Forfeited (485 ) 66.25 Vested (1,732 ) 68.62 February 2, 2019 3,815 $ 66.86 (a) Represents the number of shares of restricted stock units, in thousands. For performance-based restricted stock units, assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding restricted stock units and performance-based restricted stock units at February 2, 2019 was 3,708 thousand . (b) Weighted average per unit . The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately be issued. At February 2, 2019 , there was $125 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted average period of 2.7 years. The fair value of restricted stock units vested and converted to shares of Target common stock was $119 million , $87 million , and $75 million in 2018 , 2017 , and 2016 , respectively. Performance Share Units We issue performance share units to certain team members that represent shares potentially issuable in the future. Issuance is based upon our performance relative to a retail peer group over a three -year performance period on certain measures including sales growth, return on invested capital, and EPS growth. The fair value of performance share units is calculated based on the stock price on the date of grant. The weighted average grant date fair value for performance share units was $70.94 , $55.93 , and $71.37 in 2018 , 2017 , and 2016 , respectively. Performance Share Unit Activity Total Nonvested Units Performance Share Units (a) Grant Date Fair Value (b) February 3, 2018 3,824 $ 68.23 Granted 1,121 70.94 Forfeited (741 ) 64.16 Vested (581 ) 74.15 February 2, 2019 3,623 $ 67.47 (a) Represents the number of performance share units, in thousands. Assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units at February 2, 2019 was 2,004 thousand . (b) Weighted average per unit. The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately be issued. Future compensation expense for unvested awards could reach a maximum of $144 million assuming payout of all unvested awards. The unrecognized expense is expected to be recognized over a weighted average period of 1.2 years. The fair value of performance share units vested and converted to shares of Target common stock was $43 million in 2018 , $30 million in 2017 , and $1 million in 2016 . Stock Options In May 2017, we granted price-vested stock options (price-vested options) to certain team members, which have met the market condition and will become exercisable in 2020 pending service condition achievement. Shares received upon exercise, net of exercise costs and taxes, are subject to a one -year post-exercise holding period. The fair value of the price-vested options was estimated using a lattice model. Through 2013, we granted nonqualified stock options to certain team members. All are vested and currently exercisable. Stock Option Activity Stock Options Total Outstanding Exercisable Number of Options (a) Exercise Price (b) Intrinsic Value (c) Number of Options (a) Exercise Price (b) Intrinsic Value (c) February 3, 2018 5,938 $ 54.53 $ 109 3,913 $ 53.97 $ 74 Granted — — Expired/forfeited (89 ) 53.85 Exercised/issued (1,859 ) 52.53 February 2, 2019 3,990 $ 55.49 $ 63 2,039 $ 55.38 $ 32 (a) In thousands. (b) Weighted average per share. (c) Represents stock price appreciation subsequent to the grant date, in millions. Stock Option Exercises (millions) 2018 2017 2016 Cash received for exercise price $ 96 $ 109 $ 219 Intrinsic value 50 34 103 Income tax benefit 12 13 40 At February 2, 2019 , there was $5 million of total unrecognized compensation expense related to nonvested price-vested options, which is expected to be recognized over a weighted average period of 1.3 years. The weighted average remaining life of exercisable options is 2.8 years, and the weighted average remaining life of all outstanding options is 4.0 years. No options vested in 2018 or 2017. The total fair value of options vested in 2016 was $9 million . |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Feb. 02, 2019 | |
Defined Contribution Plans | |
Defined Contribution Plans | Defined Contribution Plans Team members who meet eligibility requirements can participate in a defined contribution 401(k) plan by investing up to 80 percent of their eligible earnings, as limited by statute or regulation. We match 100 percent of each team member's contribution up to 5 percent of eligible earnings. Company match contributions are made to funds designated by the participant, none of which are based on Target common stock. In addition, we maintain a nonqualified, unfunded deferred compensation plan for approximately 2,100 current and retired team members whose participation in our 401(k) plan is limited by statute or regulation. These team members choose from a menu of crediting rate alternatives that are generally the same as the investment choices in our 401(k) plan, but also includes a fund based on Target common stock. We credit an additional 2 percent per year to the accounts of all active participants, excluding executive officers, in part to recognize the risks inherent to their participation in this plan. We also maintain a frozen nonqualified, unfunded deferred compensation plan covering approximately 50 participants. Our total liability under these plans was $517 million and $542 million at February 2, 2019 and February 3, 2018 , respectively. We mitigate our risk of offering the nonqualified plans through investing in company-owned life insurance and prepaid forward contracts that substantially offset our economic exposure to the returns of these plans. These investments 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. See Note 12 for additional information. Plan Expenses (millions) 2018 2017 2016 401(k) plan matching contributions expense $ 229 $ 219 $ 197 Nonqualified deferred compensation plans Benefits expense 18 83 58 Related investment expense (income) 6 (48 ) (38 ) Nonqualified plan net expense $ 24 $ 35 $ 20 |
Pension Plans
Pension Plans | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans We have qualified defined benefit pension plans covering team members who meet age and service requirements, including date of hire in certain circumstances. Effective January 1, 2009, our U.S. qualified defined benefit pension plan was closed to new participants, with limited exceptions. We also have unfunded nonqualified pension plans for team members with qualified plan compensation restrictions. Eligibility for, and the level of, these benefits varies depending on each team member's date of hire, length of service and/or team member compensation. Funded Status Qualified Plans Nonqualified Plans (millions) 2018 2017 2018 2017 Projected benefit obligations $ 3,928 $ 4,092 $ 30 $ 32 Fair value of plan assets 3,925 4,117 — — Funded / (underfunded) status $ (3 ) $ 25 $ (30 ) $ (32 ) Contributions and Estimated Future Benefit Payments Our obligations to plan participants can be met over time through a combination of company contributions to these plans and earnings on plan assets. We are not required to make any contributions to our qualified defined benefit pension plans in 2019. However, depending on investment performance and plan funded status, we may elect to make a contribution. Estimated Future Benefit Payments (millions) Pension Benefits 2019 $ 284 2020 202 2021 211 2022 219 2023 226 2024-2028 1,235 Cost of Plans Net Pension Benefits Expense (millions) Classification 2018 2017 2016 Service cost benefits earned SG&A Expenses $ 95 $ 86 $ 87 Interest cost on projected benefit obligation Net Other (Income) / Expense 146 140 134 Expected return on assets Net Other (Income) / Expense (246 ) (250 ) (256 ) Amortization of losses Net Other (Income) / Expense 82 61 46 Amortization of prior service cost Net Other (Income) / Expense (11 ) (11 ) (11 ) Settlement and special termination charges Net Other (Income) / Expense 4 1 2 Total $ 70 $ 27 $ 2 Assumptions Benefit Obligation Weighted Average Assumptions 2018 2017 Discount rate 4.28 % 3.93 % Average assumed rate of compensation increase 3.00 3.00 Net Periodic Benefit Expense Weighted Average Assumptions 2018 2017 2016 Discount rate 3.93 % 4.40 % 4.70 % Expected long-term rate of return on plan assets 6.30 6.55 6.80 Average assumed rate of compensation increase 3.00 3.00 3.00 The weighted average assumptions used to measure net periodic benefit expense each year are the rates as of the beginning of the year (i.e., the prior measurement date). Based on a stable asset allocation, our most recent compound annual rate of return on qualified plans' assets was 5.0 percent , 7.3 percent , 6.7 percent , and 6.0 percent for the 5 -year, 10 -year, 15 -year, and 20 -year time periods, respectively. The market-related value of plan assets, which is used in calculating expected return on assets in net periodic benefit cost, is determined each year by adjusting the previous year's value by expected return, benefit payments, and cash contributions. The market-related value is adjusted for asset gains and losses in equal 20 percent adjustments over a 5 -year period. We review the expected long-term rate of return annually and revise it as appropriate. Additionally, we monitor the mix of investments in our portfolio to ensure alignment with our long-term strategy to manage pension cost and reduce volatility in our assets. Our 2018 expected annualized long-term rate of return assumptions were 6.5 percent for domestic equity securities, 7.5 percent for international equity securities, 4.5 percent for long-duration debt securities, 7.5 percent for balanced funds, and 8.5 percent for other investments. These estimates are a judgmental matter in which we consider the composition of our asset portfolio, our historical long-term investment performance, and current market conditions. Benefit Obligation Change in Projected Benefit Obligation Qualified Plans Nonqualified Plans (millions) 2018 2017 2018 2017 Benefit obligation at beginning of period $ 4,092 $ 3,760 $ 32 $ 32 Service cost 94 85 1 1 Interest cost 145 139 1 1 Actuarial (gain) / loss (168 ) 270 — 1 Participant contributions 6 6 — — Benefits paid (241 ) (168 ) (4 ) (3 ) Benefit obligation at end of period (a) $ 3,928 $ 4,092 $ 30 $ 32 (a) Accumulated benefit obligation—the present value of benefits earned to date assuming no future salary growth—is materially consistent with the projected benefit obligation in each period presented. Plan Assets Change in Plan Assets Qualified Plans Nonqualified Plans (millions) 2018 2017 2018 2017 Fair value of plan assets at beginning of period $ 4,117 $ 3,785 $ — $ — Actual return on plan assets (66 ) 493 — — Employer contributions 109 1 4 3 Participant contributions 6 6 — — Benefits paid (241 ) (168 ) (4 ) (3 ) Fair value of plan assets at end of period $ 3,925 $ 4,117 $ — $ — Our asset allocation policy is designed to reduce the long-term cost of funding our pension obligations. The plan invests with both passive and active investment managers depending on the investment. The plan also seeks to reduce the risk associated with adverse movements in interest rates by employing an interest rate hedging program, which may include the use of interest rate swaps, total return swaps, and other instruments. Asset Category Current Targeted Actual Allocation Allocation 2018 2017 Domestic equity securities (a) 14 % 13 % 16 % International equity securities 9 9 10 Debt securities 45 47 44 Balanced funds 23 24 23 Other (b) 9 7 7 Total 100 % 100 % 100 % (a) Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets in both periods presented. (b) Other assets include private equity, mezzanine and high-yield debt, natural resources and timberland funds, multi-strategy hedge funds, derivative instruments, and real estate. Fair Value Measurements Fair Value at (millions) Pricing Category January 31, 2019 January 31, 2018 Cash and cash equivalents Level 1 $ 3 $ 4 Government securities (a) Level 2 631 531 Fixed income (b) Level 2 1,123 1,145 Derivatives Level 2 12 19 1,769 1,699 Investments valued using NAV per share (c) Cash and cash equivalents 100 185 Common collective trusts 828 966 Fixed Income 54 55 Balanced funds 952 959 Private equity funds 84 97 Other 138 156 Total plan assets $ 3,925 $ 4,117 (a) Investments in government securities and long-term government bonds. (b) Investments in corporate and municipal bonds. (c) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Position Valuation Technique Cash and cash equivalents Carrying value approximates fair value. Government securities and fixed income Valued using matrix pricing models and quoted prices of securities with similar characteristics. Derivatives Swap derivatives - Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Option derivatives - Valued at transaction price initially. Subsequent valuations are based on observable inputs to the valuation model (e.g., underlying investments). Amounts Included in Shareholders' Equity Amounts in Accumulated Other Comprehensive Income (millions) 2018 2017 Net actuarial loss $ 1,060 $ 1,001 Prior service credits (24 ) (35 ) Amounts in Accumulated Other Comprehensive Income (a)(b) $ 1,036 $ 966 (a) $772 million and $720 million , net of tax, at the end of 2018 and 2017 , respectively. (b) We expect 2019 net pension expense to include amortization expense of $51 million ( $38 million , net of tax) related to net actuarial loss and prior service credit balances included in Accumulated Other Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Feb. 02, 2019 | |
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 Benefit Total February 3, 2018 $ (14 ) $ (13 ) $ (720 ) $ (747 ) Other Comprehensive Income / (Loss) before reclassifications, net of tax — (7 ) (107 ) (114 ) Amounts reclassified from AOCI, net of tax 1 (a) — 55 (b) 56 February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) (a) Represents amortization of gains and losses on cash flow hedges, net of taxes, which is recorded in Net Interest Expense on the Consolidated Statements of Operations. (b) Represents amortization of pension gains and losses, net of $19 million of taxes, which is recorded in SG&A Expenses on the Consolidated Statements of Operations. See Note 24 for additional information. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) Due to the seasonal nature of our business, fourth quarter operating results typically represent a substantially larger share of total year revenues and earnings because they include the November and December holiday sales period. We follow the same accounting policies for preparing quarterly and annual financial data. The table below summarizes quarterly results for 2018 and 2017 : Quarterly Results First Quarter Second Quarter Third Quarter Fourth Quarter Total Year (millions, except per share data) 2018 2017 2018 2017 2018 2017 2018 2017 (a) 2018 2017 (a) Sales $ 16,556 $ 15,995 $ 17,552 $ 16,410 $ 17,590 $ 16,647 $ 22,734 $ 22,734 $ 74,433 $ 71,786 Other revenue 225 228 224 224 231 227 243 249 923 928 Total revenue 16,781 16,223 17,776 16,634 17,821 16,874 22,977 22,983 75,356 72,714 Cost of sales 11,625 11,199 12,239 11,419 12,535 11,712 16,900 16,795 53,299 51,125 Selling, general, and administrative expenses 3,545 3,353 3,865 3,601 3,937 3,733 4,376 4,454 15,723 15,140 Depreciation and amortization (exclusive of depreciation included in cost of sales) 570 516 539 521 530 582 584 605 2,224 2,225 Operating income 1,041 1,155 1,133 1,093 819 847 1,117 1,129 4,110 4,224 Net interest expense 121 140 115 131 115 251 110 131 461 653 Net other (income) / expense (7 ) (15 ) (4 ) (15 ) (9 ) (15 ) (7 ) (14 ) (27 ) (59 ) Earnings from continuing operations before income taxes 927 1,030 1,022 977 713 611 1,014 1,012 3,676 3,630 Provision for income taxes 210 355 223 307 97 135 216 (76 ) 746 722 Net earnings from continuing operations 717 675 799 670 616 476 798 1,088 2,930 2,908 Discontinued operations, net of tax 1 3 — 1 6 2 1 (1 ) 7 6 Net earnings $ 718 $ 678 $ 799 $ 671 $ 622 $ 478 $ 799 $ 1,087 $ 2,937 $ 2,914 Basic earnings per share Continuing operations $ 1.34 $ 1.22 $ 1.50 $ 1.22 $ 1.17 $ 0.87 $ 1.53 $ 2.01 $ 5.54 $ 5.32 Discontinued operations — 0.01 — — 0.01 — — — 0.01 0.01 Net earnings per share $ 1.34 $ 1.23 $ 1.50 $ 1.22 $ 1.18 $ 0.88 $ 1.54 $ 2.01 $ 5.55 $ 5.32 Diluted earnings per share Continuing operations $ 1.33 $ 1.21 $ 1.49 $ 1.21 $ 1.16 $ 0.87 $ 1.52 $ 1.99 $ 5.50 $ 5.29 Discontinued operations — 0.01 — — 0.01 — — — 0.01 0.01 Net earnings per share $ 1.33 $ 1.22 $ 1.49 $ 1.22 $ 1.17 $ 0.87 $ 1.52 $ 1.99 $ 5.51 $ 5.29 Dividends declared per share $ 0.62 $ 0.60 $ 0.64 $ 0.62 $ 0.64 $ 0.62 $ 0.64 $ 0.62 $ 2.54 $ 2.46 Note: Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and all other quarterly amounts may not equal the total year due to rounding. 2017 amounts are adjusted to conform with current year presentation. Refer to Note 2. (a) The fourth quarter and full year 2018 consisted of 13 weeks and 52 weeks, respectively, compared with 14 weeks and 53 weeks in the comparable prior-year periods. |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization We are a general merchandise retailer selling products to our guests through our stores and digital channels. 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 or through our digital channels. Nearly all of our revenues are generated in the United States (U.S.). The vast majority of our long-lived assets are located within the U.S. |
Consolidation | Consolidation The consolidated financial statements include the balances of Target and its subsidiaries after elimination of intercompany balances and transactions. All material subsidiaries are wholly owned. We consolidate variable interest entities where it has been determined that Target is the primary beneficiary of those entities' operations. |
Use of estimates | Use of estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions affecting reported amounts in the consolidated financial statements and accompanying notes. Actual results may differ significantly from those estimates. |
Fiscal year | Fiscal year Our fiscal year ends on the Saturday nearest January 31. Unless otherwise stated, references to years in this report relate to fiscal years, rather than to calendar years. Fiscal 2018 ended February 2, 2019 , and consisted of 52 weeks. Fiscal 2017 ended February 3, 2018 , and consisted of 53 weeks. Fiscal 2016 ended January 28, 2017 , and consisted of 52 weeks. Fiscal 2019 will end February 1, 2020, and will consist of 52 weeks. |
Accounting policies | Accounting policies Our accounting policies are disclosed in the applicable Notes to the Consolidated Financial Statements. Certain prior-year amounts have been reclassified to conform to the current year presentation. Note 2 provides information about our adoption of new accounting standards for revenue recognition, leases, and pensions. |
Accounting Standards Adopted | Accounting Standards Adopted Revenue Recognition We adopted Accounting Standards Update (ASU) No. 2014-09— Revenue from Contracts with Customers (Topic 606) , as amended, as of February 4, 2018, using the full retrospective approach. The new standard did not materially affect our consolidated net earnings, financial position, or cash flows. The new standard resulted in minor changes to the timing of recognition of revenues for certain promotional gift card programs. For 2017 and 2016, we reclassified profit-sharing income under our credit card program agreement to Other Revenue from Selling, General and Administrative Expenses (SG&A Expenses). In addition, we reclassified certain advertising, rental, and other miscellaneous revenues, none of which was individually significant, from Sales and SG&A Expenses to Other Revenue. Leases We adopted ASU No. 2016-02— Leases (Topic 842) , as amended, as of February 4, 2018, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. In addition, we elected the hindsight practical expedient to determine the lease term for existing leases. Our election of the hindsight practical expedient resulted in the shortening of lease terms for certain existing leases and the useful lives of corresponding leasehold improvements. In our application of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our overall real estate strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $1.3 billion and $1.4 billion respectively, as of February 4, 2018. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as an adjustment to retained earnings. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. Pensions In 2018, we adopted ASU No. 2017-07— Compensation – Retirement Benefits (Topic 715) using the full retrospective approach. The new standard requires employers to disaggregate and present separately the current service cost component from the other components of net benefit cost within the Consolidated Statement of Operations. For 2017 and 2016, we reclassified $(59) million and $(88) million , respectively, of non-service cost components of net benefit cost to Net Other (Income) / Expense from SG&A Expenses on our Consolidated Statements of Operations. |
Revenues | Merchandise sales – We record almost all retail store revenues at the point of sale. Digital channel originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Total revenues do not include sales tax because we are a pass-through conduit for collecting and remitting sales taxes. Generally, guests may return national brand merchandise within 90 days of purchase and owned and exclusive brands within one year of purchase. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of February 2, 2019 , February 3, 2018 , and January 28, 2017 , the liability for estimated returns was $116 million , $110 million , and $103 million , respectively. We have not historically had material adjustments to our returns estimates. We routinely enter into arrangements with vendors whereby we do not purchase or pay for merchandise until the merchandise is ultimately sold to a guest. Under the vast majority of these arrangements, which represent less than 5 percent of consolidated sales, we record revenue and related costs gross. We concluded that we are the principal in these transactions for a number of reasons, most notably because we 1) control the overall economics of the transactions, including setting the sales price and realizing the majority of cash flows from the sale, 2) control the relationship with the customer, and 3) are responsible for fulfilling the promise to provide goods to the customer. Merchandise received under these arrangements is not included in Inventory in our Consolidated Statements of Financial Position because the purchase and sale of this inventory are virtually simultaneous. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions. Guests receive a 5 percent discount on nearly all purchases and receive free shipping at Target.com when they use their Target Debit Card, Target Credit Card, or Target MasterCard (REDcards). The discount is included as a sales reduction in our Consolidated Statements of Operations and was $953 million , $933 million , and $899 million in 2018 , 2017 , and 2016 , respectively. Credit card profit sharing – We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other – Includes rental income, advertising, membership fees, and other miscellaneous revenues, none of which are individually significant. |
Cost of Sales | Cost of Sales and Selling, General and Administrative Expenses The following table illustrates the primary items classified in each major expense category: Cost of Sales Selling, General and Administrative Expenses Total cost of products sold including • Freight expenses associated with moving merchandise from our vendors to and between our distribution centers and our retail stores • Vendor income that is not reimbursement of specific, incremental, and identifiable costs Inventory shrink Markdowns Outbound shipping and handling expenses associated with sales to our guests Payment term cash discounts Distribution center costs, including compensation and benefits costs and depreciation Import costs Compensation and benefit costs for stores and rd party bank issued Note: The classification of these expenses varies across the retail industry. Cost of Sales Total cost of products sold including |
Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses The following table illustrates the primary items classified in each major expense category: Cost of Sales Selling, General and Administrative Expenses Total cost of products sold including • Freight expenses associated with moving merchandise from our vendors to and between our distribution centers and our retail stores • Vendor income that is not reimbursement of specific, incremental, and identifiable costs Inventory shrink Markdowns Outbound shipping and handling expenses associated with sales to our guests Payment term cash discounts Distribution center costs, including compensation and benefits costs and depreciation Import costs Compensation and benefit costs for stores and rd party bank issued Note: The classification of these expenses varies across the retail industry. Selling, General and Administrative Expenses Compensation and benefit costs for stores and rd party bank issued |
Consideration Received from Vendors | Consideration Received from Vendors We receive consideration for a variety of vendor-sponsored programs, such as volume rebates, markdown allowances, promotions, and advertising allowances and for our compliance programs, referred to as "vendor income." Additionally, under our compliance programs, vendors are charged for merchandise shipments that do not meet our requirements (violations), such as late or incomplete shipments. Substantially all consideration received is recorded as a reduction of Cost of Sales. We establish a receivable for vendor income that is earned but not yet received. Based on provisions of the agreements in place, this receivable is computed by estimating the amount earned when we have completed our performance. We perform detailed analyses to determine the appropriate level of the receivable in the aggregate. The majority of year-end receivables associated with these activities are collected within the following fiscal quarter. We have not historically had significant write-offs for these receivables. |
Advertising Costs | Advertising Costs Advertising costs, which primarily consist of newspaper circulars, digital advertisements, and media broadcast, are generally expensed at first showing or distribution of the advertisement. |
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). |
Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments with an original maturity of three months or less from the time of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. |
Inventory | Inventory The vast majority of our inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Inventory cost includes the amount we pay to our suppliers to acquire inventory, freight costs incurred to deliver product to our distribution centers and stores, and import costs, reduced by vendor income and cash discounts. Distribution center operating costs, including compensation and benefits, are expensed in the period incurred. Inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory. |
Property and Equipment | Property and Equipment Property and equipment, including assets acquired under finance leases, is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Depreciation expense for 2018 , 2017 , and 2016 was $2,460 million , $2,462 million , and $2,305 million , respectively, including depreciation expense included in Cost of Sales. For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. |
Goodwill and Intangible Assets | We use both accelerated and straight-line methods to amortize definite-lived intangible assets over 4 to 15 years . |
Commitments | Commitments and Contingencies Contingencies We are exposed to claims and litigation arising in the ordinary course of business and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. When a loss is probable, we record an accrual based on the reasonably estimable loss or range of loss. When no point of loss is more likely than another, we record the lowest amount in the estimated range of loss and, if material, disclose the estimated range of loss. We do not record liabilities for reasonably possible loss contingencies, but do disclose a range of reasonably possible losses if they are material and we are able to estimate such a range. If we cannot provide a range of reasonably possible losses, we explain the factors that prevent us from determining such a range. Historically, adjustments to our estimates have not been material. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not believe that any of these identified claims or litigation will be material to our results of operations, cash flows, or financial condition. Commitments Purchase obligations, which include all legally binding contracts such as firm commitments for inventory purchases, merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments, and service contracts, were $992 million and $1,225 million at February 2, 2019 and February 3, 2018 , respectively. |
Derivative 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. Note 7 provides the fair value and classification of these instruments. |
Leases | Leases We lease certain retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores. |
Income Taxes | Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year the temporary differences are expected to be recovered or settled. Tax rate changes affecting deferred tax assets and liabilities are recognized at the enactment date. |
Share-Based Compensation | The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately be issued. The fair value for restricted stock units is calculated based on the stock price on the date of grant, incorporating an analysis of the total shareholder return performance measure where applicable. |
Pension Plans | Position Valuation Technique Cash and cash equivalents Carrying value approximates fair value. Government securities and fixed income Valued using matrix pricing models and quoted prices of securities with similar characteristics. Derivatives Swap derivatives - Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Option derivatives - Valued at transaction price initially. Subsequent valuations are based on observable inputs to the valuation model (e.g., underlying investments). The weighted average assumptions used to measure net periodic benefit expense each year are the rates as of the beginning of the year (i.e., the prior measurement date). Based on a stable asset allocation, our most recent compound annual rate of return on qualified plans' assets was 5.0 percent , 7.3 percent , 6.7 percent , and 6.0 percent for the 5 -year, 10 -year, 15 -year, and 20 -year time periods, respectively. The market-related value of plan assets, which is used in calculating expected return on assets in net periodic benefit cost, is determined each year by adjusting the previous year's value by expected return, benefit payments, and cash contributions. The market-related value is adjusted for asset gains and losses in equal 20 percent adjustments over a 5 -year period. |
Accounting Standards Adopted (T
Accounting Standards Adopted (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Impact of New Accounting Pronouncements | Effect of Accounting Standards Adoption on Consolidated Statement of Operations 2017 As Previously Reported Effect of the Adoption of ASC Topic 606 (Revenue Recognition) ASC Topic 842 (Leases) ASU 2017-07 (Pension) (millions, except per share data) (unaudited) 2017 As Adjusted Sales $ 71,879 $ (93 ) (a) $ — $ — $ 71,786 Other revenue — 928 (a) — — 928 Total revenue 71,879 835 — — 72,714 Cost of sales 51,125 — — — 51,125 Selling, general and administrative expenses 14,248 835 (a) (2 ) (b) 59 (c) 15,140 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,194 — 31 (b) — 2,225 Operating income 4,312 — (29 ) (59 ) 4,224 Net interest expense 666 — (13 ) (b) — 653 Net other (income) / expense — — — (59 ) (c) (59 ) Earnings from continuing operations before income taxes 3,646 — (16 ) — 3,630 Provision for income taxes 718 (2 ) 6 — 722 Net earnings from continuing operations 2,928 2 (22 ) — 2,908 Discontinued operations, net of tax 6 — — — 6 Net earnings $ 2,934 $ 2 $ (22 ) $ — $ 2,914 Basic earnings per share Continuing operations $ 5.35 $ 5.32 Discontinued operations 0.01 0.01 Net earnings per share $ 5.36 $ 5.32 Diluted earnings per share Continuing operations $ 5.32 $ 5.29 Discontinued operations 0.01 0.01 Net earnings per share $ 5.33 $ 5.29 Note: 2017 was a 53-week year. Per share amounts may not foot due to rounding. The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. Footnote explanations are provided on page 42. Effect of Accounting Standards Adoption on Consolidated Statement of Operations 2016 As Previously Reported Effect of the Adoption of ASC Topic 606 (Revenue Recognition) ASC ASU 2017-07 (Pension) (millions, except per share data) (unaudited) 2016 As Adjusted Sales $ 69,495 $ (80 ) (a) $ — $ — $ 69,414 Other revenue — 857 (a) — — 857 Total revenue 69,495 777 — — 70,271 Cost of sales 49,145 — — — 49,145 Selling, general and administrative expenses 13,356 777 (a) (4 ) (b) 88 (c) 14,217 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,025 — 20 (b) — 2,045 Operating income 4,969 — (16 ) (88 ) 4,864 Net interest expense 1,004 — (13 ) (b) — 991 Net other (income) / expense — — — (88 ) (c) (88 ) Earnings from continuing operations before income taxes 3,965 — (3 ) — 3,961 Provision for income taxes 1,296 — (1 ) — 1,295 Net earnings from continuing operations 2,669 — (2 ) — 2,666 Discontinued operations, net of tax 68 — — — 68 Net earnings $ 2,737 $ — $ (2 ) $ — $ 2,734 Basic earnings per share Continuing operations $ 4.62 $ 4.61 Discontinued operations 0.12 0.12 Net earnings per share $ 4.74 $ 4.73 Diluted earnings per share Continuing operations $ 4.58 $ 4.58 Discontinued operations 0.12 0.12 Net earnings per share $ 4.70 $ 4.69 Note: Per share amounts may not foot due to rounding. The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. (a) For 2017 and 2016, we reclassified $694 million and $663 million , respectively, of profit-sharing income under our credit card program agreement to Other Revenue from SG&A Expenses. In addition, we reclassified certain advertising, rental, and other miscellaneous revenues, none of which was individually significant, from Sales and SG&A Expenses to Other Revenue. (b) Relates to lease-term changes under the hindsight practical expedient. (c) Relates to non-service cost components reclassified to Net Other (Income) / Expense from SG&A Expenses. Effect of Accounting Standards Adoption on Consolidated Statement of Financial Position Effect of the Adoption of (millions) (unaudited) February 3, 2018 As Previously Reported ASC ASC February 3, 2018 As Adjusted Assets Cash and cash equivalents $ 2,643 $ — $ — $ 2,643 Inventory 8,657 (60 ) (a) — 8,597 Other current assets 1,264 60 (a) (24 ) (b) 1,300 Total current assets 12,564 — (24 ) 12,540 Property and equipment Land 6,095 — — 6,095 Buildings and improvements 28,396 — (265 ) (c) 28,131 Fixtures and equipment 5,623 — — 5,623 Computer hardware and software 2,645 — — 2,645 Construction-in-progress 440 — — 440 Accumulated depreciation (18,181 ) — (217 ) (c) (18,398 ) Property and equipment, net 25,018 — (482 ) 24,536 Operating lease assets — — 1,884 (d) 1,884 Other noncurrent assets 1,417 — (74 ) (e) 1,343 Total assets $ 38,999 $ — $ 1,304 $ 40,303 Liabilities and shareholders’ investment Accounts payable $ 8,677 $ — $ — $ 8,677 Accrued and other current liabilities 4,254 (14 ) (k) (146 ) (f) 4,094 Current portion of long-term debt and other borrowings 270 — 11 (g) 281 Total current liabilities 13,201 (14 ) (135 ) 13,052 Long-term debt and other borrowings 11,317 — (200 ) (g) 11,117 Noncurrent operating lease liabilities — — 1,924 (h) 1,924 Deferred income taxes 713 4 (24 ) 693 Other noncurrent liabilities 2,059 — (192 ) (i) 1,866 Total noncurrent liabilities 14,089 4 1,508 15,600 Shareholders’ investment Common stock 45 — — 45 Additional paid-in capital 5,858 — — 5,858 Retained earnings 6,553 10 (k) (69 ) (j) 6,495 Accumulated other comprehensive loss (747 ) — — (747 ) Total shareholders’ investment 11,709 10 (69 ) 11,651 Total liabilities and shareholders’ investment $ 38,999 $ — $ 1,304 $ 40,303 Note: The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. (a) Represents estimated merchandise returns, which were reclassified from Inventory to Other Current Assets. (b) Represents prepaid rent reclassified to Operating Lease Assets. (c) Represents impact of changes in finance lease terms and related leasehold improvements (net of accumulated depreciation) under the hindsight practical expedient and derecognition of approximately $135 million of non-Target owned properties that were consolidated under previously existing build-to-suit accounting rules. (d) Represents capitalization of operating lease assets and reclassification of leasehold acquisition costs, straight-line rent accrual, and tenant incentives. (e) Represents reclassification of leasehold acquisition costs to Operating Lease Assets. (f) Represents reclassification of straight-line rent accrual to Operating Lease Assets, partially offset by recognition of the current portion of operating lease liabilities. (g) Represents the impact of changes in financing lease terms for certain leases due to the election of the hindsight practical expedient. (h) Represents recognition of operating lease liabilities. (i) Represents derecognition of approximately $135 million of liabilities related to non-Target owned properties that were consolidated under previously existing build-to-suit accounting rules and reclassification of tenant incentives to Operating Lease Assets. (j) Represents the retained earnings impact of lease-term changes due to the use of hindsight, primarily from the shortening of lease terms for certain existing leases and useful lives of corresponding leasehold improvements. (k) Primarily represents the impact of a change in timing of revenue recognition for certain promotional gift card programs. The following table illustrates the primary items classified in each major expense category: Cost of Sales Selling, General and Administrative Expenses Total cost of products sold including • Freight expenses associated with moving merchandise from our vendors to and between our distribution centers and our retail stores • Vendor income that is not reimbursement of specific, incremental, and identifiable costs Inventory shrink Markdowns Outbound shipping and handling expenses associated with sales to our guests Payment term cash discounts Distribution center costs, including compensation and benefits costs and depreciation Import costs Compensation and benefit costs for stores and rd party bank issued Note: The classification of these expenses varies across the retail industry. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenues (millions) 2018 2017 2016 Apparel and accessories $ 15,004 $ 14,662 $ 14,304 Beauty and household essentials 17,726 17,025 16,550 Food and beverage 14,585 14,256 13,831 Hardlines 12,709 12,062 11,507 Home furnishings and décor 14,298 13,672 13,130 Other 111 109 92 Sales 74,433 71,786 69,414 Credit card profit sharing 673 694 663 Other 250 234 194 Other revenue 923 928 857 Total revenue $ 75,356 $ 72,714 $ 70,271 |
Schedule of Gift Card Liability | (millions) February 3, Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability February 2, Gift card liability $ 727 $ 645 $ (532 ) $ 840 (a) Net of estimated breakage. |
Cost of Sales and Selling, Ge_2
Cost of Sales and Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Cost of Sales and Selling, General and Administrative Expenses [Abstract] | |
Schedule of Primary Items Classified in each Major Expense Category | Effect of Accounting Standards Adoption on Consolidated Statement of Operations 2017 As Previously Reported Effect of the Adoption of ASC Topic 606 (Revenue Recognition) ASC Topic 842 (Leases) ASU 2017-07 (Pension) (millions, except per share data) (unaudited) 2017 As Adjusted Sales $ 71,879 $ (93 ) (a) $ — $ — $ 71,786 Other revenue — 928 (a) — — 928 Total revenue 71,879 835 — — 72,714 Cost of sales 51,125 — — — 51,125 Selling, general and administrative expenses 14,248 835 (a) (2 ) (b) 59 (c) 15,140 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,194 — 31 (b) — 2,225 Operating income 4,312 — (29 ) (59 ) 4,224 Net interest expense 666 — (13 ) (b) — 653 Net other (income) / expense — — — (59 ) (c) (59 ) Earnings from continuing operations before income taxes 3,646 — (16 ) — 3,630 Provision for income taxes 718 (2 ) 6 — 722 Net earnings from continuing operations 2,928 2 (22 ) — 2,908 Discontinued operations, net of tax 6 — — — 6 Net earnings $ 2,934 $ 2 $ (22 ) $ — $ 2,914 Basic earnings per share Continuing operations $ 5.35 $ 5.32 Discontinued operations 0.01 0.01 Net earnings per share $ 5.36 $ 5.32 Diluted earnings per share Continuing operations $ 5.32 $ 5.29 Discontinued operations 0.01 0.01 Net earnings per share $ 5.33 $ 5.29 Note: 2017 was a 53-week year. Per share amounts may not foot due to rounding. The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. Footnote explanations are provided on page 42. Effect of Accounting Standards Adoption on Consolidated Statement of Operations 2016 As Previously Reported Effect of the Adoption of ASC Topic 606 (Revenue Recognition) ASC ASU 2017-07 (Pension) (millions, except per share data) (unaudited) 2016 As Adjusted Sales $ 69,495 $ (80 ) (a) $ — $ — $ 69,414 Other revenue — 857 (a) — — 857 Total revenue 69,495 777 — — 70,271 Cost of sales 49,145 — — — 49,145 Selling, general and administrative expenses 13,356 777 (a) (4 ) (b) 88 (c) 14,217 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,025 — 20 (b) — 2,045 Operating income 4,969 — (16 ) (88 ) 4,864 Net interest expense 1,004 — (13 ) (b) — 991 Net other (income) / expense — — — (88 ) (c) (88 ) Earnings from continuing operations before income taxes 3,965 — (3 ) — 3,961 Provision for income taxes 1,296 — (1 ) — 1,295 Net earnings from continuing operations 2,669 — (2 ) — 2,666 Discontinued operations, net of tax 68 — — — 68 Net earnings $ 2,737 $ — $ (2 ) $ — $ 2,734 Basic earnings per share Continuing operations $ 4.62 $ 4.61 Discontinued operations 0.12 0.12 Net earnings per share $ 4.74 $ 4.73 Diluted earnings per share Continuing operations $ 4.58 $ 4.58 Discontinued operations 0.12 0.12 Net earnings per share $ 4.70 $ 4.69 Note: Per share amounts may not foot due to rounding. The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. (a) For 2017 and 2016, we reclassified $694 million and $663 million , respectively, of profit-sharing income under our credit card program agreement to Other Revenue from SG&A Expenses. In addition, we reclassified certain advertising, rental, and other miscellaneous revenues, none of which was individually significant, from Sales and SG&A Expenses to Other Revenue. (b) Relates to lease-term changes under the hindsight practical expedient. (c) Relates to non-service cost components reclassified to Net Other (Income) / Expense from SG&A Expenses. Effect of Accounting Standards Adoption on Consolidated Statement of Financial Position Effect of the Adoption of (millions) (unaudited) February 3, 2018 As Previously Reported ASC ASC February 3, 2018 As Adjusted Assets Cash and cash equivalents $ 2,643 $ — $ — $ 2,643 Inventory 8,657 (60 ) (a) — 8,597 Other current assets 1,264 60 (a) (24 ) (b) 1,300 Total current assets 12,564 — (24 ) 12,540 Property and equipment Land 6,095 — — 6,095 Buildings and improvements 28,396 — (265 ) (c) 28,131 Fixtures and equipment 5,623 — — 5,623 Computer hardware and software 2,645 — — 2,645 Construction-in-progress 440 — — 440 Accumulated depreciation (18,181 ) — (217 ) (c) (18,398 ) Property and equipment, net 25,018 — (482 ) 24,536 Operating lease assets — — 1,884 (d) 1,884 Other noncurrent assets 1,417 — (74 ) (e) 1,343 Total assets $ 38,999 $ — $ 1,304 $ 40,303 Liabilities and shareholders’ investment Accounts payable $ 8,677 $ — $ — $ 8,677 Accrued and other current liabilities 4,254 (14 ) (k) (146 ) (f) 4,094 Current portion of long-term debt and other borrowings 270 — 11 (g) 281 Total current liabilities 13,201 (14 ) (135 ) 13,052 Long-term debt and other borrowings 11,317 — (200 ) (g) 11,117 Noncurrent operating lease liabilities — — 1,924 (h) 1,924 Deferred income taxes 713 4 (24 ) 693 Other noncurrent liabilities 2,059 — (192 ) (i) 1,866 Total noncurrent liabilities 14,089 4 1,508 15,600 Shareholders’ investment Common stock 45 — — 45 Additional paid-in capital 5,858 — — 5,858 Retained earnings 6,553 10 (k) (69 ) (j) 6,495 Accumulated other comprehensive loss (747 ) — — (747 ) Total shareholders’ investment 11,709 10 (69 ) 11,651 Total liabilities and shareholders’ investment $ 38,999 $ — $ 1,304 $ 40,303 Note: The sum of "As Previously Reported" amounts and effects of the adoption of the new standards may not equal "As Adjusted" amounts due to rounding. (a) Represents estimated merchandise returns, which were reclassified from Inventory to Other Current Assets. (b) Represents prepaid rent reclassified to Operating Lease Assets. (c) Represents impact of changes in finance lease terms and related leasehold improvements (net of accumulated depreciation) under the hindsight practical expedient and derecognition of approximately $135 million of non-Target owned properties that were consolidated under previously existing build-to-suit accounting rules. (d) Represents capitalization of operating lease assets and reclassification of leasehold acquisition costs, straight-line rent accrual, and tenant incentives. (e) Represents reclassification of leasehold acquisition costs to Operating Lease Assets. (f) Represents reclassification of straight-line rent accrual to Operating Lease Assets, partially offset by recognition of the current portion of operating lease liabilities. (g) Represents the impact of changes in financing lease terms for certain leases due to the election of the hindsight practical expedient. (h) Represents recognition of operating lease liabilities. (i) Represents derecognition of approximately $135 million of liabilities related to non-Target owned properties that were consolidated under previously existing build-to-suit accounting rules and reclassification of tenant incentives to Operating Lease Assets. (j) Represents the retained earnings impact of lease-term changes due to the use of hindsight, primarily from the shortening of lease terms for certain existing leases and useful lives of corresponding leasehold improvements. (k) Primarily represents the impact of a change in timing of revenue recognition for certain promotional gift card programs. The following table illustrates the primary items classified in each major expense category: Cost of Sales Selling, General and Administrative Expenses Total cost of products sold including • Freight expenses associated with moving merchandise from our vendors to and between our distribution centers and our retail stores • Vendor income that is not reimbursement of specific, incremental, and identifiable costs Inventory shrink Markdowns Outbound shipping and handling expenses associated with sales to our guests Payment term cash discounts Distribution center costs, including compensation and benefits costs and depreciation Import costs Compensation and benefit costs for stores and rd party bank issued Note: The classification of these expenses varies across the retail industry. |
Advertising Costs (Tables)
Advertising Costs (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Advertising Costs | |
Schedule of Advertising Costs | Advertising Costs (millions) 2018 2017 2016 Gross advertising costs $ 1,494 $ 1,476 $ 1,503 Vendor income — (19 ) (38 ) Net advertising costs $ 1,494 $ 1,457 $ 1,465 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
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) Classification Pricing Category February 2, February 3, Assets Short-term investments (a) Cash and Cash Equivalents Level 1 $ 769 $ 1,906 Prepaid forward contracts (b) Other Current Assets Level 1 19 23 Interest rate swaps (c) Other Noncurrent Assets Level 2 10 — Liabilities Interest rate swaps (c) Other Current Liabilities Level 2 3 — Interest rate swaps (c) Other Noncurrent Liabilities Level 2 — 6 (a) Carrying value approximates fair value because maturities are less than three months. (b) Initially valued at transaction price. Subsequently valued by reference to the market price of Target common stock. (c) Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). See Note 17 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) 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (b) $ 10,247 $ 10,808 $ 10,440 $ 11,155 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | (millions) February 2, February 3, Cash $ 359 $ 337 Short-term investments 769 1,906 Receivables from third-party financial institutions for credit and debit card transactions 428 400 Cash and cash equivalents (a) $ 1,556 $ 2,643 (a) We have access to these funds without any significant restrictions, taxes or penalties. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Other Current Assets | |
Other Current Assets | Other Current Assets (millions) February 2, February 3, 2018 As Adjusted Income tax and other receivables $ 632 $ 513 Vendor income receivable 468 416 Prepaid expenses 157 157 Other 209 214 Total $ 1,466 $ 1,300 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Estimated Useful Lives | Estimated Useful Lives Life (Years) Buildings and improvements 8-39 Fixtures and equipment 2-15 Computer hardware and software 2-7 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Noncurrent Assets | Other Noncurrent Assets (millions) February 2, February 3, 2018 As Adjusted Goodwill and intangible assets $ 699 $ 709 Company-owned life insurance investments, net of loans 380 383 Pension asset 11 46 Other 183 205 Total $ 1,273 $ 1,343 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accrued and Other Current Liabilities | |
Schedule of Accrued and Other Current Liabilities | Accrued and Other Current Liabilities (millions) February 2, February 3, 2018 As Adjusted Wages and benefits $ 1,229 $ 1,209 Gift card liability, net of estimated breakage 840 727 Real estate, sales, and other taxes payable 601 670 Dividends payable 331 336 Current portion of operating lease liabilities 166 148 Workers' compensation and general liability (a) 142 141 Interest payable 62 67 Other 830 796 Total $ 4,201 $ 4,094 (a) We retain a substantial portion of the risk related to general liability and workers' compensation claims. We estimate our ultimate cost based on analysis of historical data and actuarial estimates. General liability and workers' compensation liabilities are recorded at our estimate of their net present value. |
Commercial Paper and Long-Ter_2
Commercial Paper and Long-Term Debt (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value and Maturities of Debt Portfolio | At February 2, 2019 , the carrying value and maturities of our debt portfolio were as follows: Debt Maturities February 2, 2019 (dollars in millions) Rate (a) Balance Due 2019-2023 3.4 % $ 3,207 Due 2024-2028 3.3 2,179 Due 2029-2033 6.6 561 Due 2034-2038 6.8 1,109 Due 2039-2043 4.0 1,465 Due 2044-2048 3.7 1,726 Total notes and debentures 4.1 10,247 Swap valuation adjustments 7 Finance lease liabilities 1,021 Less: Amounts due within one year (1,052 ) Long-term debt and other borrowings $ 10,223 (a) Reflects the weighted average stated interest rate as of year-end. |
Schedule of Required Principal Payments | Required Principal Payments (millions) 2019 2020 2021 2022 2023 Total required principal payments $ 1,002 $ 1,094 $ 1,056 $ 63 $ — |
Schedule of Short-term Financing | Commercial Paper (dollars in millions) 2018 2017 2016 Maximum daily amount outstanding during the year $ 658 $ — $ 89 Average amount outstanding during the year 63 — 1 Amount outstanding at year-end — — — Weighted average interest rate 2.00 % — % 0.43 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Schedule of Leases | Leases (millions) Classification February 2, February 3, Assets Operating Operating Lease Assets $ 1,965 $ 1,884 Finance Buildings and Improvements, net of Accumulated Depreciation (a) 872 836 Total leased assets $ 2,837 $ 2,720 Liabilities Current Operating Accrued and Other Current Liabilities $ 166 $ 148 Finance Current Portion of Long-term Debt and Other Borrowings 53 80 Noncurrent Operating Noncurrent Operating Lease Liabilities 2,004 1,924 Finance Long-term Debt and Other Borrowings 968 885 Total lease liabilities $ 3,191 $ 3,037 Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the incremental borrowing rate on January 31, 2016, for operating leases that commenced prior to that date. (a) Finance lease assets are recorded net of accumulated amortization of $371 million and $317 million as of February 2, 2019 and February 3, 2018, respectively. Other Information (millions) 2018 2017 2016 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 231 $ 198 $ 188 Operating cash flows from finance leases 45 42 36 Financing cash flows from finance leases 80 45 94 |
Schedule of Lease Cost | Lease Term and Discount Rate February 2, February 3, Weighted average remaining lease term (years) Operating leases 14.2 15.2 Finance leases 15.4 15.4 Weighted average discount rate Operating leases 3.91 % 3.88 % Finance leases 4.64 % 4.64 % Lease Cost (millions) Classification 2018 2017 2016 Operating lease cost (a) SG&A Expenses $ 251 $ 221 $ 199 Finance lease cost Amortization of leased assets Depreciation and Amortization (b) 65 63 87 Interest on lease liabilities Net Interest Expense 42 42 36 Sublease income (c) Other Revenue (11 ) (9 ) (7 ) Net lease cost $ 347 $ 317 $ 315 (a) Includes short-term leases and variable lease costs, which are immaterial. (b) Supply chain-related amounts are included in Cost of Sales. (c) Sublease income excludes rental income from owned properties of $47 million for 2018, 2017, and 2016, which is included in Other Revenue. |
Schedule of Maturity of Operating Lease Liabilities | Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2019 $ 245 $ 98 $ 343 2020 238 98 336 2021 232 98 330 2022 226 99 325 2023 217 94 311 After 2023 1,746 974 2,720 Total lease payments $ 2,904 $ 1,461 $ 4,365 Less: Interest 734 440 Present value of lease liabilities $ 2,170 $ 1,021 (a) Operating lease payments include $778 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $341 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Finance lease payments include $127 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $193 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Maturity of Finance Lease Liabilities | Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2019 $ 245 $ 98 $ 343 2020 238 98 336 2021 232 98 330 2022 226 99 325 2023 217 94 311 After 2023 1,746 974 2,720 Total lease payments $ 2,904 $ 1,461 $ 4,365 Less: Interest 734 440 Present value of lease liabilities $ 2,170 $ 1,021 (a) Operating lease payments include $778 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $341 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Finance lease payments include $127 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $193 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Rate Reconciliation - Continuing Operations | Tax Rate Reconciliation – Continuing Operations 2018 2017 As Adjusted 2016 As Adjusted Federal statutory rate 21.0 % 33.7 % 35.0 % State income taxes, net of the federal tax benefit 3.6 2.2 2.7 International (1.3 ) (4.6 ) (2.6 ) Tax Act (a) (1.0 ) (9.5 ) — Excess tax benefit related to share-based payments (0.3 ) (0.1 ) (0.6 ) Federal tax credits (1.1 ) (0.8 ) (0.7 ) Other (0.6 ) (1.0 ) (1.1 ) Effective tax rate 20.3 % 19.9 % 32.7 % (a) Represents the discrete benefit of remeasuring our net deferred tax liabilities at the new lower U.S. corporate income tax rate. |
Schedule of Provision for Income Taxes | Provision for Income Taxes (millions) 2018 2017 As Adjusted 2016 As Adjusted Current: Federal $ 257 $ 746 $ 1,108 State 116 105 141 International 51 59 6 Total current 424 910 1,255 Deferred: Federal 263 (229 ) 20 State 57 27 21 International 2 14 (1 ) Total deferred 322 (188 ) 40 Total provision $ 746 $ 722 $ 1,295 |
Schedule of Net Deferred Tax Asset/(Liability) | Net Deferred Tax Asset / (Liability) (millions) February 2, February 3, 2018 As Adjusted Gross deferred tax assets: Accrued and deferred compensation $ 248 $ 262 Accruals and reserves not currently deductible 181 162 Self-insured benefits 114 109 Deferred occupancy income 157 164 Leased assets 92 87 Other 40 42 Total gross deferred tax assets 832 826 Gross deferred tax liabilities: Property and equipment (1,557 ) (1,264 ) Inventory (140 ) (130 ) Other (95 ) (91 ) Total gross deferred tax liabilities (1,792 ) (1,485 ) Total net deferred tax liability $ (960 ) $ (659 ) |
Schedule of Reconciliation of Liability for Unrecognized Tax Benefits | Reconciliation of Liability for Unrecognized Tax Benefits (millions) 2018 2017 2016 Balance at beginning of period $ 325 $ 153 $ 153 Additions based on tax positions related to the current year 58 112 12 Additions for tax positions of prior years 10 142 6 Reductions for tax positions of prior years (91 ) (71 ) (16 ) Settlements (2 ) (11 ) (2 ) Balance at end of period $ 300 $ 325 $ 153 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other Noncurrent Liabilities (millions) February 2, February 3, 2018 As Adjusted Deferred occupancy income (a) $ 570 $ 600 Deferred compensation 472 503 Income tax 312 332 Workers' compensation and general liability 281 278 Pension benefits 40 41 Other 105 112 Total $ 1,780 $ 1,866 (a) To be amortized evenly through 2038. |
Share Repurchase (Tables)
Share Repurchase (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
Schedule of Share repurchases | Share Repurchases (millions, except per share data) 2018 2017 2016 Total number of shares purchased 27.2 17.6 50.9 Average price paid per share $ 75.88 $ 58.44 $ 72.35 Total investment $ 2,067 $ 1,026 $ 3,686 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | Restricted Stock Unit Activity Total Nonvested Units Restricted Stock (a) Grant Date Fair Value (b) February 3, 2018 3,763 $ 64.35 Granted 2,269 72.65 Forfeited (485 ) 66.25 Vested (1,732 ) 68.62 February 2, 2019 3,815 $ 66.86 (a) Represents the number of shares of restricted stock units, in thousands. For performance-based restricted stock units, assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding restricted stock units and performance-based restricted stock units at February 2, 2019 was 3,708 thousand . (b) Weighted average per unit . Restricted Stock Unit Activity Total Nonvested Units Restricted Stock (a) Grant Date Fair Value (b) February 3, 2018 3,763 $ 64.35 Granted 2,269 72.65 Forfeited (485 ) 66.25 Vested (1,732 ) 68.62 February 2, 2019 3,815 $ 66.86 (a) Represents the number of shares of restricted stock units, in thousands. For performance-based restricted stock units, assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding restricted stock units and performance-based restricted stock units at February 2, 2019 was 3,708 thousand . (b) Weighted average per unit . |
Schedule of Performance Share Unit Activity | Performance Share Unit Activity Total Nonvested Units Performance Share Units (a) Grant Date Fair Value (b) February 3, 2018 3,824 $ 68.23 Granted 1,121 70.94 Forfeited (741 ) 64.16 Vested (581 ) 74.15 February 2, 2019 3,623 $ 67.47 (a) Represents the number of performance share units, in thousands. Assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units at February 2, 2019 was 2,004 thousand . (b) Weighted average per unit. |
Schedule of Stock Option Activity | Stock Option Activity Stock Options Total Outstanding Exercisable Number of Options (a) Exercise Price (b) Intrinsic Value (c) Number of Options (a) Exercise Price (b) Intrinsic Value (c) February 3, 2018 5,938 $ 54.53 $ 109 3,913 $ 53.97 $ 74 Granted — — Expired/forfeited (89 ) 53.85 Exercised/issued (1,859 ) 52.53 February 2, 2019 3,990 $ 55.49 $ 63 2,039 $ 55.38 $ 32 (a) In thousands. (b) Weighted average per share. (c) Represents stock price appreciation subsequent to the grant date, in millions. Stock Option Exercises (millions) 2018 2017 2016 Cash received for exercise price $ 96 $ 109 $ 219 Intrinsic value 50 34 103 Income tax benefit 12 13 40 |
Defined Contribution Plans (Tab
Defined Contribution Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Defined Contribution Plans | |
Schedule of Plan Expenses | Plan Expenses (millions) 2018 2017 2016 401(k) plan matching contributions expense $ 229 $ 219 $ 197 Nonqualified deferred compensation plans Benefits expense 18 83 58 Related investment expense (income) 6 (48 ) (38 ) Nonqualified plan net expense $ 24 $ 35 $ 20 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Recognition of Funded/(Underfunded) Status | Funded Status Qualified Plans Nonqualified Plans (millions) 2018 2017 2018 2017 Projected benefit obligations $ 3,928 $ 4,092 $ 30 $ 32 Fair value of plan assets 3,925 4,117 — — Funded / (underfunded) status $ (3 ) $ 25 $ (30 ) $ (32 ) |
Schedule of Estimated Future Benefit Payments | Estimated Future Benefit Payments (millions) Pension Benefits 2019 $ 284 2020 202 2021 211 2022 219 2023 226 2024-2028 1,235 |
Schedule of Net Pension Benefits Expense | Net Pension Benefits Expense (millions) Classification 2018 2017 2016 Service cost benefits earned SG&A Expenses $ 95 $ 86 $ 87 Interest cost on projected benefit obligation Net Other (Income) / Expense 146 140 134 Expected return on assets Net Other (Income) / Expense (246 ) (250 ) (256 ) Amortization of losses Net Other (Income) / Expense 82 61 46 Amortization of prior service cost Net Other (Income) / Expense (11 ) (11 ) (11 ) Settlement and special termination charges Net Other (Income) / Expense 4 1 2 Total $ 70 $ 27 $ 2 |
Schedule of Benefit Obligation Weighted Average Assumptions | Benefit Obligation Weighted Average Assumptions 2018 2017 Discount rate 4.28 % 3.93 % Average assumed rate of compensation increase 3.00 3.00 |
Schedule of Net Periodic Benefit Expense Weighted Average Assumptions | Net Periodic Benefit Expense Weighted Average Assumptions 2018 2017 2016 Discount rate 3.93 % 4.40 % 4.70 % Expected long-term rate of return on plan assets 6.30 6.55 6.80 Average assumed rate of compensation increase 3.00 3.00 3.00 |
Schedule of Change in Projected Benefit Obligation | Change in Projected Benefit Obligation Qualified Plans Nonqualified Plans (millions) 2018 2017 2018 2017 Benefit obligation at beginning of period $ 4,092 $ 3,760 $ 32 $ 32 Service cost 94 85 1 1 Interest cost 145 139 1 1 Actuarial (gain) / loss (168 ) 270 — 1 Participant contributions 6 6 — — Benefits paid (241 ) (168 ) (4 ) (3 ) Benefit obligation at end of period (a) $ 3,928 $ 4,092 $ 30 $ 32 (a) Accumulated benefit obligation—the present value of benefits earned to date assuming no future salary growth—is materially consistent with the projected benefit obligation in each period presented. |
Schedule of Change in Plan Assets | Change in Plan Assets Qualified Plans Nonqualified Plans (millions) 2018 2017 2018 2017 Fair value of plan assets at beginning of period $ 4,117 $ 3,785 $ — $ — Actual return on plan assets (66 ) 493 — — Employer contributions 109 1 4 3 Participant contributions 6 6 — — Benefits paid (241 ) (168 ) (4 ) (3 ) Fair value of plan assets at end of period $ 3,925 $ 4,117 $ — $ — |
Schedule of Asset Category | Asset Category Current Targeted Actual Allocation Allocation 2018 2017 Domestic equity securities (a) 14 % 13 % 16 % International equity securities 9 9 10 Debt securities 45 47 44 Balanced funds 23 24 23 Other (b) 9 7 7 Total 100 % 100 % 100 % (a) Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets in both periods presented. (b) Other assets include private equity, mezzanine and high-yield debt, natural resources and timberland funds, multi-strategy hedge funds, derivative instruments, and real estate. |
Schedule of Fair Value Measurements | Fair Value Measurements Fair Value at (millions) Pricing Category January 31, 2019 January 31, 2018 Cash and cash equivalents Level 1 $ 3 $ 4 Government securities (a) Level 2 631 531 Fixed income (b) Level 2 1,123 1,145 Derivatives Level 2 12 19 1,769 1,699 Investments valued using NAV per share (c) Cash and cash equivalents 100 185 Common collective trusts 828 966 Fixed Income 54 55 Balanced funds 952 959 Private equity funds 84 97 Other 138 156 Total plan assets $ 3,925 $ 4,117 (a) Investments in government securities and long-term government bonds. (b) Investments in corporate and municipal bonds. (c) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Summary of Valuation Techniques for Each Position | Position Valuation Technique Cash and cash equivalents Carrying value approximates fair value. Government securities and fixed income Valued using matrix pricing models and quoted prices of securities with similar characteristics. Derivatives Swap derivatives - Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Option derivatives - Valued at transaction price initially. Subsequent valuations are based on observable inputs to the valuation model (e.g., underlying investments). |
Schedule of Amounts in Accumulated Other Comprehensive Income | Amounts in Accumulated Other Comprehensive Income (millions) 2018 2017 Net actuarial loss $ 1,060 $ 1,001 Prior service credits (24 ) (35 ) Amounts in Accumulated Other Comprehensive Income (a)(b) $ 1,036 $ 966 (a) $772 million and $720 million , net of tax, at the end of 2018 and 2017 , respectively. (b) We expect 2019 net pension expense to include amortization expense of $51 million ( $38 million , net of tax) related to net actuarial loss and prior service credit balances included in Accumulated Other Comprehensive Income. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Accumulated Other Comprehensive Income | (millions) Cash Flow Hedges Currency Translation Adjustment Pension and Other Benefit Total February 3, 2018 $ (14 ) $ (13 ) $ (720 ) $ (747 ) Other Comprehensive Income / (Loss) before reclassifications, net of tax — (7 ) (107 ) (114 ) Amounts reclassified from AOCI, net of tax 1 (a) — 55 (b) 56 February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) (a) Represents amortization of gains and losses on cash flow hedges, net of taxes, which is recorded in Net Interest Expense on the Consolidated Statements of Operations. (b) Represents amortization of pension gains and losses, net of $19 million of taxes, which is recorded in SG&A Expenses on the Consolidated Statements of Operations. See Note 24 for additional information. |
Summary of Reclassification out of Accumulated Other Comprehensive Income | (millions) Cash Flow Hedges Currency Translation Adjustment Pension and Other Benefit Total February 3, 2018 $ (14 ) $ (13 ) $ (720 ) $ (747 ) Other Comprehensive Income / (Loss) before reclassifications, net of tax — (7 ) (107 ) (114 ) Amounts reclassified from AOCI, net of tax 1 (a) — 55 (b) 56 February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) (a) Represents amortization of gains and losses on cash flow hedges, net of taxes, which is recorded in Net Interest Expense on the Consolidated Statements of Operations. (b) Represents amortization of pension gains and losses, net of $19 million of taxes, which is recorded in SG&A Expenses on the Consolidated Statements of Operations. See Note 24 for additional information. |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | The table below summarizes quarterly results for 2018 and 2017 : Quarterly Results First Quarter Second Quarter Third Quarter Fourth Quarter Total Year (millions, except per share data) 2018 2017 2018 2017 2018 2017 2018 2017 (a) 2018 2017 (a) Sales $ 16,556 $ 15,995 $ 17,552 $ 16,410 $ 17,590 $ 16,647 $ 22,734 $ 22,734 $ 74,433 $ 71,786 Other revenue 225 228 224 224 231 227 243 249 923 928 Total revenue 16,781 16,223 17,776 16,634 17,821 16,874 22,977 22,983 75,356 72,714 Cost of sales 11,625 11,199 12,239 11,419 12,535 11,712 16,900 16,795 53,299 51,125 Selling, general, and administrative expenses 3,545 3,353 3,865 3,601 3,937 3,733 4,376 4,454 15,723 15,140 Depreciation and amortization (exclusive of depreciation included in cost of sales) 570 516 539 521 530 582 584 605 2,224 2,225 Operating income 1,041 1,155 1,133 1,093 819 847 1,117 1,129 4,110 4,224 Net interest expense 121 140 115 131 115 251 110 131 461 653 Net other (income) / expense (7 ) (15 ) (4 ) (15 ) (9 ) (15 ) (7 ) (14 ) (27 ) (59 ) Earnings from continuing operations before income taxes 927 1,030 1,022 977 713 611 1,014 1,012 3,676 3,630 Provision for income taxes 210 355 223 307 97 135 216 (76 ) 746 722 Net earnings from continuing operations 717 675 799 670 616 476 798 1,088 2,930 2,908 Discontinued operations, net of tax 1 3 — 1 6 2 1 (1 ) 7 6 Net earnings $ 718 $ 678 $ 799 $ 671 $ 622 $ 478 $ 799 $ 1,087 $ 2,937 $ 2,914 Basic earnings per share Continuing operations $ 1.34 $ 1.22 $ 1.50 $ 1.22 $ 1.17 $ 0.87 $ 1.53 $ 2.01 $ 5.54 $ 5.32 Discontinued operations — 0.01 — — 0.01 — — — 0.01 0.01 Net earnings per share $ 1.34 $ 1.23 $ 1.50 $ 1.22 $ 1.18 $ 0.88 $ 1.54 $ 2.01 $ 5.55 $ 5.32 Diluted earnings per share Continuing operations $ 1.33 $ 1.21 $ 1.49 $ 1.21 $ 1.16 $ 0.87 $ 1.52 $ 1.99 $ 5.50 $ 5.29 Discontinued operations — 0.01 — — 0.01 — — — 0.01 0.01 Net earnings per share $ 1.33 $ 1.22 $ 1.49 $ 1.22 $ 1.17 $ 0.87 $ 1.52 $ 1.99 $ 5.51 $ 5.29 Dividends declared per share $ 0.62 $ 0.60 $ 0.64 $ 0.62 $ 0.64 $ 0.62 $ 0.64 $ 0.62 $ 2.54 $ 2.46 Note: Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and all other quarterly amounts may not equal the total year due to rounding. 2017 amounts are adjusted to conform with current year presentation. Refer to Note 2. (a) The fourth quarter and full year 2018 consisted of 13 weeks and 52 weeks, respectively, compared with 14 weeks and 53 weeks in the comparable prior-year periods. |
Summary of Accounting Policie_2
Summary of Accounting Policies (Details) | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fiscal period duration | 364 days | 71 days | 364 days | |
Forecast | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fiscal period duration | 364 days |
Accounting Standards Adopted -
Accounting Standards Adopted - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Net other (income) / expense | $ (7) | $ (9) | $ (4) | $ (7) | $ (14) | $ (15) | $ (15) | $ (15) | $ (27) | $ (59) | [1] | $ (88) | [1] | ||
Buildings and improvements | $ 29,240 | 28,131 | [1] | $ 29,240 | 28,131 | [1] | |||||||||
Accounting Standards Update 2014-09 | Effect of the Adoption of | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Credit card profit sharing | 694 | $ 663 | |||||||||||||
Adoption of ASC Topic 842 (Leases) | Effect of the Adoption of | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Net lease assets | 1,300 | 1,300 | |||||||||||||
Net lease liabilities | 1,400 | 1,400 | |||||||||||||
Buildings and improvements | (265) | (265) | |||||||||||||
Liabilities derecognized associated with non-target owned properties | (135) | (135) | |||||||||||||
Adoption of ASC Topic 842 (Leases) | Effect of the Adoption of | Non-owned Properties Previously Consolidated | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Buildings and improvements | $ (135) | (135) | |||||||||||||
ASU 2017-07 (Pension) | Effect of the Adoption of | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Net other (income) / expense | $ (59) | $ (88) | |||||||||||||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Accounting Standards Adopted _2
Accounting Standards Adopted - Impact of New Accounting Standards on Revenue (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | $ 22,977 | $ 17,821 | $ 17,776 | $ 16,781 | $ 22,983 | $ 16,874 | $ 16,634 | $ 16,223 | $ 75,356 | $ 72,714 | [1] | $ 70,271 | [1] | |
Cost of sales | 16,900 | 12,535 | 12,239 | 11,625 | 16,795 | 11,712 | 11,419 | 11,199 | 53,299 | 51,125 | [1] | 49,145 | [1] | |
Selling, general and administrative expenses | 4,376 | 3,937 | 3,865 | 3,545 | 4,454 | 3,733 | 3,601 | 3,353 | 15,723 | 15,140 | [1] | 14,217 | [1] | |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 584 | 530 | 539 | 570 | 605 | 582 | 521 | 516 | 2,224 | 2,225 | [1] | 2,045 | [1] | |
Operating income | 1,117 | 819 | 1,133 | 1,041 | 1,129 | 847 | 1,093 | 1,155 | 4,110 | 4,224 | [1] | 4,864 | [1] | |
Net interest expense | 110 | 115 | 115 | 121 | 131 | 251 | 131 | 140 | 461 | 653 | [1] | 991 | [1] | |
Net other (income) / expense | (7) | (9) | (4) | (7) | (14) | (15) | (15) | (15) | (27) | (59) | [1] | (88) | [1] | |
Earnings from continuing operations before income taxes | 1,014 | 713 | 1,022 | 927 | 1,012 | 611 | 977 | 1,030 | 3,676 | 3,630 | [1] | 3,961 | [1] | |
Provision for income taxes | 216 | 97 | 223 | 210 | (76) | 135 | 307 | 355 | 746 | 722 | [1] | 1,295 | [1] | |
Net earnings from continuing operations | 798 | 616 | 799 | 717 | 1,088 | 476 | 670 | 675 | 2,930 | 2,908 | [1] | 2,666 | [1] | |
Discontinued operations, net of tax | 1 | 6 | 0 | 1 | (1) | 2 | 1 | 3 | 7 | 6 | [1] | 68 | [1] | |
Net earnings | $ 799 | $ 622 | $ 799 | $ 718 | $ 1,087 | $ 478 | $ 671 | $ 678 | $ 2,937 | $ 2,914 | [1] | $ 2,734 | [1] | |
Continuing operations (in dollars per share) | $ 1.53 | $ 1.17 | $ 1.50 | $ 1.34 | $ 2.01 | $ 0.87 | $ 1.22 | $ 1.22 | $ 5.54 | [2] | $ 5.32 | [1],[2] | $ 4.61 | [1],[2] |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.01 | [2] | 0.01 | [1],[2] | 0.12 | [1],[2] |
Net earnings per share (in dollars per share) | 1.54 | 1.18 | 1.50 | 1.34 | 2.01 | 0.88 | 1.22 | 1.23 | 5.55 | [2] | 5.32 | [1],[2] | 4.73 | [1],[2] |
Continuing operations (in dollars per share) | 1.52 | 1.16 | 1.49 | 1.33 | 1.99 | 0.87 | 1.21 | 1.21 | 5.50 | [2] | 5.29 | [1],[2] | 4.58 | [1],[2] |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.01 | [2] | 0.01 | [1],[2] | 0.12 | [1],[2] |
Net earnings per share (in dollars per share) | $ 1.52 | $ 1.17 | $ 1.49 | $ 1.33 | $ 1.99 | $ 0.87 | $ 1.22 | $ 1.22 | $ 5.51 | [2] | $ 5.29 | [1],[2] | $ 4.69 | [1],[2] |
As Previously Reported | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | $ 71,879 | $ 69,495 | ||||||||||||
Cost of sales | 51,125 | 49,145 | ||||||||||||
Selling, general and administrative expenses | 14,248 | 13,356 | ||||||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 2,194 | 2,025 | ||||||||||||
Operating income | 4,312 | 4,969 | ||||||||||||
Net interest expense | 666 | 1,004 | ||||||||||||
Net other (income) / expense | 0 | 0 | ||||||||||||
Earnings from continuing operations before income taxes | 3,646 | 3,965 | ||||||||||||
Provision for income taxes | 718 | 1,296 | ||||||||||||
Net earnings from continuing operations | 2,928 | 2,669 | ||||||||||||
Discontinued operations, net of tax | 6 | 68 | ||||||||||||
Net earnings | $ 2,934 | $ 2,737 | ||||||||||||
Continuing operations (in dollars per share) | $ 5.35 | $ 4.62 | ||||||||||||
Discontinued operations (in dollars per share) | 0.01 | 0.12 | ||||||||||||
Net earnings per share (in dollars per share) | 5.36 | 4.74 | ||||||||||||
Continuing operations (in dollars per share) | 5.32 | 4.58 | ||||||||||||
Discontinued operations (in dollars per share) | 0.01 | 0.12 | ||||||||||||
Net earnings per share (in dollars per share) | $ 5.33 | $ 4.70 | ||||||||||||
ASC Topic 606 (Revenue Recognition) | Effect of the Adoption of | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | $ 835 | $ 777 | ||||||||||||
Selling, general and administrative expenses | 835 | 777 | ||||||||||||
Provision for income taxes | (2) | |||||||||||||
Net earnings from continuing operations | 2 | |||||||||||||
Net earnings | 2 | |||||||||||||
Adoption of ASC Topic 842 (Leases) | Effect of the Adoption of | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Selling, general and administrative expenses | (2) | (4) | ||||||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 31 | 20 | ||||||||||||
Operating income | (29) | (16) | ||||||||||||
Net interest expense | (13) | (13) | ||||||||||||
Earnings from continuing operations before income taxes | (16) | (3) | ||||||||||||
Provision for income taxes | 6 | (1) | ||||||||||||
Net earnings from continuing operations | (22) | (2) | ||||||||||||
Net earnings | (22) | (2) | ||||||||||||
ASU 2017-07 (Pension) | Effect of the Adoption of | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Selling, general and administrative expenses | 59 | 88 | ||||||||||||
Operating income | (59) | (88) | ||||||||||||
Net other (income) / expense | (59) | (88) | ||||||||||||
Sales | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | $ 22,734 | $ 17,590 | $ 17,552 | $ 16,556 | $ 22,734 | $ 16,647 | $ 16,410 | $ 15,995 | $ 74,433 | 71,786 | [1] | 69,414 | [1] | |
Sales | As Previously Reported | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | 71,879 | 69,495 | ||||||||||||
Sales | ASC Topic 606 (Revenue Recognition) | Effect of the Adoption of | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | (93) | (80) | ||||||||||||
Other revenue | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | $ 243 | $ 231 | $ 224 | $ 225 | $ 249 | $ 227 | $ 224 | $ 228 | $ 923 | 928 | [1] | 857 | [1] | |
Other revenue | As Previously Reported | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | 0 | 0 | ||||||||||||
Other revenue | ASC Topic 606 (Revenue Recognition) | Effect of the Adoption of | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Total revenue | $ 928 | $ 857 | ||||||||||||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. | |||||||||||||
[2] | Per share amounts may not foot due to rounding |
Accounting Standards Adopted _3
Accounting Standards Adopted - Impact of New Accounting Standards on Financial Position (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Assets | |||||
Cash and cash equivalents | $ 1,556 | $ 2,643 | [1] | ||
Inventory | 9,497 | 8,597 | [1] | ||
Other current assets | 1,466 | 1,300 | [1] | ||
Total current assets | 12,519 | 12,540 | [1] | ||
Property and equipment | |||||
Land | 6,064 | 6,095 | [1] | ||
Buildings and improvements | 29,240 | 28,131 | [1] | ||
Fixtures and equipment | 5,912 | 5,623 | [1] | ||
Computer hardware and software | 2,544 | 2,645 | [1] | ||
Construction-in-progress | 460 | 440 | [1] | ||
Accumulated depreciation | (18,687) | (18,398) | [1] | ||
Property and equipment, net | 25,533 | 24,536 | [1] | ||
Operating lease assets | 1,965 | 1,884 | [1] | ||
Other noncurrent assets | 1,273 | 1,343 | [1] | ||
Total assets | 41,290 | 40,303 | [1] | ||
Liabilities and shareholders' investment | |||||
Accounts payable | 9,761 | 8,677 | [1] | ||
Accrued and other current liabilities | 4,201 | 4,094 | [1] | ||
Current portion of long-term debt and other borrowings | 1,052 | 281 | [1] | ||
Total current liabilities | 15,014 | 13,052 | [1] | ||
Long-term debt and other borrowings | 10,223 | 11,117 | [1] | ||
Noncurrent operating lease liabilities | 2,004 | 1,924 | [1] | ||
Deferred income taxes | 693 | ||||
Other noncurrent liabilities | 1,780 | 1,866 | [1] | ||
Total noncurrent liabilities | 14,979 | 15,600 | [1] | ||
Shareholders’ investment | |||||
Common stock | 43 | 45 | [1] | ||
Additional paid-in capital | 6,042 | 5,858 | [1] | ||
Retained earnings | 6,017 | 6,495 | [1] | ||
Accumulated other comprehensive loss | (805) | (747) | [1] | ||
Total shareholders' investment | 11,297 | 11,651 | [1] | $ 10,915 | $ 12,965 |
Total liabilities and shareholders' investment | $ 41,290 | 40,303 | [1] | ||
As Previously Reported | |||||
Assets | |||||
Cash and cash equivalents | 2,643 | ||||
Inventory | 8,657 | ||||
Other current assets | 1,264 | ||||
Total current assets | 12,564 | ||||
Property and equipment | |||||
Land | 6,095 | ||||
Buildings and improvements | 28,396 | ||||
Fixtures and equipment | 5,623 | ||||
Computer hardware and software | 2,645 | ||||
Construction-in-progress | 440 | ||||
Accumulated depreciation | (18,181) | ||||
Property and equipment, net | 25,018 | ||||
Operating lease assets | 0 | ||||
Other noncurrent assets | 1,417 | ||||
Total assets | 38,999 | ||||
Liabilities and shareholders' investment | |||||
Accounts payable | 8,677 | ||||
Accrued and other current liabilities | 4,254 | ||||
Current portion of long-term debt and other borrowings | 270 | ||||
Total current liabilities | 13,201 | ||||
Long-term debt and other borrowings | 11,317 | ||||
Noncurrent operating lease liabilities | 0 | ||||
Deferred income taxes | 713 | ||||
Other noncurrent liabilities | 2,059 | ||||
Total noncurrent liabilities | 14,089 | ||||
Shareholders’ investment | |||||
Common stock | 45 | ||||
Additional paid-in capital | 5,858 | ||||
Retained earnings | 6,553 | ||||
Accumulated other comprehensive loss | (747) | ||||
Total shareholders' investment | 11,709 | ||||
Total liabilities and shareholders' investment | 38,999 | ||||
ASC Topic 606 (Revenue Recognition) | Effect of the Adoption of | |||||
Assets | |||||
Inventory | (60) | ||||
Other current assets | 60 | ||||
Liabilities and shareholders' investment | |||||
Accrued and other current liabilities | (14) | ||||
Total current liabilities | (14) | ||||
Deferred income taxes | 4 | ||||
Total noncurrent liabilities | 4 | ||||
Shareholders’ investment | |||||
Retained earnings | 10 | ||||
Total shareholders' investment | 10 | ||||
Total liabilities and shareholders' investment | 0 | ||||
Adoption of ASC Topic 842 (Leases) | Effect of the Adoption of | |||||
Assets | |||||
Other current assets | (24) | ||||
Total current assets | (24) | ||||
Property and equipment | |||||
Buildings and improvements | (265) | ||||
Accumulated depreciation | (217) | ||||
Property and equipment, net | (482) | ||||
Operating lease assets | 1,884 | ||||
Other noncurrent assets | (74) | ||||
Total assets | 1,304 | ||||
Liabilities and shareholders' investment | |||||
Accrued and other current liabilities | (146) | ||||
Current portion of long-term debt and other borrowings | 11 | ||||
Total current liabilities | (135) | ||||
Long-term debt and other borrowings | (200) | ||||
Noncurrent operating lease liabilities | 1,924 | ||||
Deferred income taxes | (24) | ||||
Other noncurrent liabilities | (192) | ||||
Total noncurrent liabilities | 1,508 | ||||
Shareholders’ investment | |||||
Retained earnings | (69) | ||||
Total shareholders' investment | (69) | ||||
Total liabilities and shareholders' investment | 1,304 | ||||
Adoption of ASC Topic 842 (Leases) | Effect of the Adoption of | Non-owned Properties Previously Consolidated | |||||
Property and equipment | |||||
Buildings and improvements | $ (135) | ||||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | $ 22,977 | $ 17,821 | $ 17,776 | $ 16,781 | $ 22,983 | $ 16,874 | $ 16,634 | $ 16,223 | $ 75,356 | $ 72,714 | [1] | $ 70,271 | [1] |
Apparel and accessories | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 15,004 | 14,662 | 14,304 | ||||||||||
Beauty and household essentials | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 17,726 | 17,025 | 16,550 | ||||||||||
Food and beverage | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 14,585 | 14,256 | 13,831 | ||||||||||
Hardlines | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 12,709 | 12,062 | 11,507 | ||||||||||
Home furnishings and décor | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 14,298 | 13,672 | 13,130 | ||||||||||
Other | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 111 | 109 | 92 | ||||||||||
Sales | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 22,734 | 17,590 | 17,552 | 16,556 | 22,734 | 16,647 | 16,410 | 15,995 | 74,433 | 71,786 | [1] | 69,414 | [1] |
Credit card profit sharing | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 673 | 694 | 663 | ||||||||||
Other | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | 250 | 234 | 194 | ||||||||||
Other revenue | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Total revenue | $ 243 | $ 231 | $ 224 | $ 225 | $ 249 | $ 227 | $ 224 | $ 228 | $ 923 | $ 928 | [1] | $ 857 | [1] |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Liability for estimated returns | $ 116 | $ 110 | $ 103 |
Percentage of sales accounted for as vendor sales to customers (as percent) | 5.00% | ||
Description of timing for performance obligation | Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions. | ||
Discount on purchases (as a percent) | 5.00% | ||
Discounts associated with REDcard rewards program | $ 953 | $ 933 | $ 899 |
National brand merchandise | |||
Disaggregation of Revenue [Line Items] | |||
Product return period | 90 days | ||
Exclusive brands | |||
Disaggregation of Revenue [Line Items] | |||
Product return period | 1 year |
Revenues - Gift Card Liability
Revenues - Gift Card Liability (Details) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Gift card liability, beginning balance | $ 727 |
Gift Cards Issued During Current Period But Not Redeemed | 645 |
Revenue Recognized From Beginning Liability | (532) |
Gift card liability, ending balance | $ 840 |
Advertising Costs (Details)
Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Advertising Costs | |||
Gross advertising costs | $ 1,494 | $ 1,476 | $ 1,503 |
Vendor income | 0 | (19) | (38) |
Net advertising costs | $ 1,494 | $ 1,457 | $ 1,465 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | |
Assets | |||
Other Current Assets | $ 1,466 | $ 1,300 | [1] |
Other Noncurrent Assets | 1,273 | 1,343 | [1] |
Liabilities | |||
Other Noncurrent Liabilities | 1,780 | 1,866 | [1] |
Level 1 | Fair Value Measurements - Recurring Basis | |||
Assets | |||
Cash and Cash Equivalents | 769 | 1,906 | |
Level 1 | Prepaid forward contracts | Fair Value Measurements - Recurring Basis | |||
Assets | |||
Other Current Assets | 19 | 23 | |
Level 2 | Interest rate swaps | Fair Value Measurements - Recurring Basis | |||
Assets | |||
Other Noncurrent Assets | 10 | 0 | |
Liabilities | |||
Other Current Liabilities | 3 | 0 | |
Other Noncurrent Liabilities | $ 0 | $ 6 | |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 10,247 | $ 10,440 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 10,808 | $ 11,155 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | ||
Cash and Cash Equivalents [Abstract] | |||
Credit and debit card transactions to be included in cash equivalents, maximum settlement period | 5 days | ||
Cash and Cash Equivalents [Line Items] | |||
Cash | $ 359 | $ 337 | |
Short-term investments | 769 | 1,906 | |
Receivables from third-party financial institutions for credit and debit card transactions | 428 | 400 | |
Cash and cash equivalents | 1,556 | 2,643 | [1] |
Accounts Payable | |||
Cash and Cash Equivalents [Line Items] | |||
Bank Overdrafts | 242 | 358 | |
Accrued and Other Current Liabilities | |||
Cash and Cash Equivalents [Line Items] | |||
Bank Overdrafts | $ 25 | $ 29 | |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | |
Other Current Assets | |||
Income tax and other receivables | $ 632 | $ 513 | |
Vendor income receivable | 468 | 416 | |
Prepaid expenses | 157 | 157 | |
Other | 209 | 214 | |
Total | $ 1,466 | $ 1,300 | [1] |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,460 | $ 2,462 | $ 2,305 |
Total impairments | $ 92 | $ 91 | $ 43 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 8 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 39 years | ||
Fixtures and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Fixtures and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 15 years | ||
Computer hardware and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Computer hardware and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Other Noncurrent Assets (Detail
Other Noncurrent Assets (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | |
Other Assets, Noncurrent [Abstract] | |||
Goodwill and intangible assets | $ 699 | $ 709 | |
Company-owned life insurance investments, net of loans | 380 | 383 | |
Pension asset | 11 | 46 | |
Other | 183 | 205 | |
Total | $ 1,273 | $ 1,343 | [1] |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Goodwill [Line Items] | ||||
Goodwill | $ 633,000,000 | $ 630,000,000 | ||
Goodwill impairment charges | 0 | 0 | $ 0 | |
Net intangible assets | $ 66,000,000 | $ 79,000,000 | ||
Shipt | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 500,000,000 | |||
Purchase price | 550,000,000 | |||
Intangible assets acquired | 40,000,000 | |||
Tangible assets acquired | $ 10,000,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net intangible assets | $ 66 | $ 79 | |
Amortization expense | 14 | $ 14 | $ 13 |
Maximum | |||
Estimated Amortization Expense | |||
2019 | 15 | ||
2020 | 15 | ||
2021 | 15 | ||
2022 | 15 | ||
2023 | $ 15 | ||
Other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 4 years | ||
Other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 15 years | ||
Other | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 8 years |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | |
Accrued and Other Current Liabilities | |||
Wages and benefits | $ 1,229 | $ 1,209 | |
Gift card liability, net of estimated breakage | 840 | 727 | |
Real estate, sales, and other taxes payable | 601 | 670 | |
Dividends payable | 331 | 336 | |
Current portion of operating lease liabilities | 166 | 148 | |
Workers' compensation and general liability | 142 | 141 | |
Interest payable | 62 | 67 | |
Other | 830 | 796 | |
Total | $ 4,201 | $ 4,094 | [1] |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Loss Contingencies [Line Items] | ||
Trade letters of credit | $ 1,746 | $ 1,757 |
Standby Letters of Credit and Surety Bonds | ||
Loss Contingencies [Line Items] | ||
Trade letters of credit | 403 | 372 |
Purchase Obligations | ||
Loss Contingencies [Line Items] | ||
Purchase obligations | $ 992 | 1,225 |
Purchase obligation term | 3 years | |
Real Estate Obligations | ||
Loss Contingencies [Line Items] | ||
Real estate obligations | $ 1,134 | $ 1,110 |
Real estate obligation period | 5 years |
Commercial Paper and Long-Ter_3
Commercial Paper and Long-Term Debt - Schedule of Carrying Value and Maturities of Debt Portfolio (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | [1] |
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 4.10% | ||
Total notes and debentures | $ 10,247 | ||
Swap valuation adjustments | 7 | ||
Finance lease liabilities | 1,021 | ||
Less: Amounts due within one year | (1,052) | ||
Long-term debt and other borrowings | $ 10,223 | $ 11,117 | |
Due 2019-2023 | |||
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 3.40% | ||
Total notes and debentures | $ 3,207 | ||
Due 2024-2028 | |||
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 3.30% | ||
Total notes and debentures | $ 2,179 | ||
Due 2029-2033 | |||
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 6.60% | ||
Total notes and debentures | $ 561 | ||
Due 2034-2038 | |||
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 6.80% | ||
Total notes and debentures | $ 1,109 | ||
Due 2039-2043 | |||
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 4.00% | ||
Total notes and debentures | $ 1,465 | ||
Due 2044-2048 | |||
Notes Payable and Long-Term Debt | |||
Rate (as a percent) | 3.70% | ||
Total notes and debentures | $ 1,726 | ||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Commercial Paper and Long-Ter_4
Commercial Paper and Long-Term Debt - Schedule of Required Principal Payments (Details) $ in Millions | Feb. 02, 2019USD ($) |
Required Principal Payments | |
2019 | $ 1,002 |
2020 | 1,094 |
2021 | 1,056 |
2022 | 63 |
2023 | $ 0 |
Commercial Paper and Long-Ter_5
Commercial Paper and Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Oct. 28, 2017 | Jul. 30, 2016 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Nov. 03, 2018 | Apr. 30, 2016 | |
Debt Instrument [Line Items] | |||||||
Extension term | 1 year | ||||||
Balances outstanding | $ 0 | $ 0 | $ 0 | ||||
Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured fixed rate debt | $ 1,800,000,000 | ||||||
Repurchase amount of debt before maturity | $ 344,000,000 | 1,389,000,000 | |||||
Payment of debt maturities | 463,000,000 | ||||||
Loss on early retirement | 123,000,000 | $ 422,000,000 | |||||
Unsecured Fixed Rate 3.9 Percent Debt, Maturing November 2047 | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured fixed rate debt | $ 750,000,000 | ||||||
Fixed interest rate (as percent) | 3.90% | ||||||
Unsecured Fixed Rate 2.5 Percent Debt, Maturing April 2026 | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured fixed rate debt | $ 1,000,000,000 | ||||||
Fixed interest rate (as percent) | 2.50% | ||||||
Unsecured Fixed Rate 3.625 Percent Debt, Maturing April 2046 | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured fixed rate debt | $ 1,000,000,000 | ||||||
Fixed interest rate (as percent) | 3.625% | ||||||
Credit Facility Expiring October 2021 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility | $ 2,500,000,000 |
Commercial Paper and Long-Ter_6
Commercial Paper and Long-Term Debt - Schedule of Commercial Paper (Details) - Commercial Paper - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Short-term Debt [Line Items] | |||
Maximum daily amount outstanding during the year | $ 658 | $ 0 | $ 89 |
Average amount outstanding during the year | 63 | 0 | 1 |
Amount outstanding at year-end | $ 0 | $ 0 | $ 0 |
Weighted average interest rate (as a percent) | 2.00% | 0.00% | 0.43% |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) | 9 Months Ended | 12 Months Ended | ||
Nov. 03, 2018swap | Feb. 02, 2019USD ($)swap | Feb. 03, 2018USD ($)swap | Jan. 28, 2017USD ($) | |
Interest Rate Swaps Acquired | Designated | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Derivative, Number of Instruments Acquired | swap | 2 | 2 | ||
Average remaining maturity | 6 years 3 months 18 days | |||
Weighted average fixed rate (as percent) | 2.90% | |||
Interest Swap Acquired One | Designated | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Notional amount | $ 250,000,000 | |||
Interest Swap Acquired Two | Designated | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Notional amount | $ 250,000,000 | |||
Interest Rate Swaps Previous Agreement | Designated | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Derivative, Number of Instruments Acquired | swap | 2 | |||
Weighted average fixed rate (as percent) | 1.80% | |||
Interest Rate Swap | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Net interest income (expense) | $ (3,000,000) | $ 9,000,000 | $ 24,000,000 | |
Interest Rate Swap | Designated | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Notional amount | $ 1,500,000,000 | $ 1,000,000,000 | ||
Number of instruments | swap | 4 | 2 | ||
Amount of ineffectiveness recognized | $ 0 | $ 0 | ||
Interest Rate Swap | Designated | Other noncurrent assets | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Derivative asset | 10,000,000 | 4,000,000 | ||
Interest Rate Swap | Designated | Other current liabilities | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Derivative liability | $ 3,000,000 | |||
Interest Rate Swap | Designated | Other noncurrent liabilities | ||||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||||
Derivative liability | $ 6,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Feb. 02, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, renewal term | 1 year |
Operating lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, renewal term | 50 years |
Operating lease, renewal term | 50 years |
Leases - Lease Assets and LIabi
Leases - Lease Assets and LIabilities (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | |
Leases [Abstract] | |||
Operating | $ 1,965 | $ 1,884 | [1] |
Finance | 872 | 836 | |
Total leased assets | 2,837 | 2,720 | |
Liabilities, Current | |||
Operating | 166 | 148 | |
Finance | 53 | 80 | |
Liabilities, noncurrent | |||
Operating | 2,004 | 1,924 | [1] |
Finance | 968 | 885 | |
Total lease liabilities | 3,191 | 3,037 | |
Property, Plant and Equipment [Line Items] | |||
Finance lease accumulated amortization | 18,687 | 18,398 | [1] |
Finance Lease Assets | |||
Property, Plant and Equipment [Line Items] | |||
Finance lease accumulated amortization | $ 371 | $ 317 | |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 251 | $ 221 | $ 199 |
Amortization of leased assets | 65 | 63 | 87 |
Interest on lease liabilities | 42 | 42 | 36 |
Sublease income | (11) | (9) | (7) |
Net lease cost | 347 | 317 | 315 |
Rental income on owned properties | $ 47 | $ 47 | $ 47 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Millions | Feb. 02, 2019USD ($) |
Operating Leases | |
2019 | $ 245 |
2020 | 238 |
2021 | 232 |
2022 | 226 |
2023 | 217 |
After 2023 | 1,746 |
Total lease payments | 2,904 |
Less: Interest | 734 |
Present value of lease liabilities | 2,170 |
Operating lease option to extend reasonably certain of being exercised | 778 |
Operating lease legally binding minimum payments for leases that have not yet commenced | 341 |
Finance Leases | |
2019 | 98 |
2020 | 98 |
2021 | 98 |
2022 | 99 |
2023 | 94 |
After 2023 | 974 |
Total lease payments | 1,461 |
Less: Interest | 440 |
Present value of lease liabilities | 1,021 |
Financing lease option to extend reasonably certain of being exercised | 127 |
Financing lease legally binding minimum payments for leases that have not yet commenced | 193 |
Total | |
2019 | 343 |
2020 | 336 |
2021 | 330 |
2022 | 325 |
2023 | 311 |
After 2023 | 2,720 |
Total lease payments | $ 4,365 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Feb. 02, 2019 | Feb. 03, 2018 |
Weighted average remaining lease term (years) | ||
Operating leases | 14 years 2 months 12 days | 15 years 2 months 12 days |
Finance leases | 15 years 5 months | 15 years 4 months 24 days |
Weighted average discount rate | ||
Operating leases | 3.91% | 3.88% |
Finance leases | 4.64% | 4.64% |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 231 | $ 198 | $ 188 |
Operating cash flows from finance leases | 45 | 42 | 36 |
Financing cash flows from finance leases | $ 80 | $ 45 | $ 94 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||
Income Tax Disclosure [Abstract] | ||||||||||||||
Provisional net tax benefit related to Tax Cuts and Jobs Act | $ 343 | |||||||||||||
Income tax benefit related to lower rate | $ 36 | 372 | ||||||||||||
State and foreign deferred income tax expense on cumulative foreign earnings | 29 | |||||||||||||
Adjustment to previously-recorded provisional amount, tax benefit | 36 | |||||||||||||
Earnings from continuing operations before income taxes | $ 1,014 | $ 713 | $ 1,022 | $ 927 | $ 1,012 | $ 611 | $ 977 | $ 1,030 | 3,676 | 3,630 | [1] | $ 3,961 | [1] | |
Amount earned by foreign entities subject to tax | 734 | 722 | 336 | |||||||||||
Unrecognized tax benefits that would impact effective tax rates | 252 | 252 | ||||||||||||
Unrecognized tax benefits reserve | 300 | 325 | 300 | 325 | 153 | $ 153 | ||||||||
Net expense (benefit) from accrued penalties and interest | 3 | (12) | 1 | |||||||||||
Total accrued interest and penalties | $ 32 | $ 29 | $ 32 | $ 29 | $ 45 | |||||||||
Period of time, increase (decrease) in unrecognized tax benefit liability resulting from other unrecognized tax positions | 12 months | |||||||||||||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Rate Reconciliation - Continuing Operations (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 33.70% | 35.00% |
State income taxes, net of the federal tax benefit | 3.60% | 2.20% | 2.70% |
International | (1.30%) | (4.60%) | (2.60%) |
Tax Act | (1.00%) | (9.50%) | 0.00% |
Excess tax benefit related to share-based payments | (0.30%) | (0.10%) | (0.60%) |
Federal tax credits | (1.10%) | (0.80%) | (0.70%) |
Other | (0.60%) | (1.00%) | (1.10%) |
Effective tax rate | 20.30% | 19.90% | 32.70% |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |||
Current: | |||||||||||||
Federal | $ 257 | $ 746 | $ 1,108 | ||||||||||
State | 116 | 105 | 141 | ||||||||||
International | 51 | 59 | 6 | ||||||||||
Total current | 424 | 910 | 1,255 | ||||||||||
Deferred: | |||||||||||||
Federal | 263 | (229) | 20 | ||||||||||
State | 57 | 27 | 21 | ||||||||||
International | 2 | 14 | (1) | ||||||||||
Total deferred | 322 | (188) | [1] | 40 | [1] | ||||||||
Total provision | $ 216 | $ 97 | $ 223 | $ 210 | $ (76) | $ 135 | $ 307 | $ 355 | $ 746 | $ 722 | [1] | $ 1,295 | [1] |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Asset/(Liability) (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Gross deferred tax assets: | ||
Accrued and deferred compensation | $ 248 | $ 262 |
Accruals and reserves not currently deductible | 181 | 162 |
Self-insured benefits | 114 | 109 |
Deferred occupancy income | 157 | 164 |
Leased assets | 92 | 87 |
Other | 40 | 42 |
Total gross deferred tax assets | 832 | 826 |
Gross deferred tax liabilities: | ||
Property and equipment | (1,557) | (1,264) |
Inventory | (140) | (130) |
Other | (95) | (91) |
Total gross deferred tax liabilities | (1,792) | (1,485) |
Total net deferred tax liability | $ (960) | $ (659) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Liability for Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of Liability for Unrecognized Tax Benefits | |||
Beginning balance | $ 325 | $ 153 | $ 153 |
Additions based on tax positions related to the current year | 58 | 112 | 12 |
Additions for tax positions of prior years | 10 | 142 | 6 |
Reductions for tax positions of prior years | (91) | (71) | (16) |
Settlements | (2) | (11) | (2) |
Ending balance | $ 300 | $ 325 | $ 153 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | |
Other Liabilities Disclosure [Abstract] | |||
Deferred occupancy income | $ 570 | $ 600 | |
Deferred compensation | 472 | 503 | |
Income tax | 312 | 332 | |
Workers' compensation and general liability | 281 | 278 | |
Pension benefits | 40 | 41 | |
Other | 105 | 112 | |
Total | $ 1,780 | $ 1,866 | [1] |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Equity [Abstract] | |||
Total number of shares purchased | 27.2 | 17.6 | 50.9 |
Average price paid per share (in dollars per share) | $ 75.88 | $ 58.44 | $ 72.35 |
Total investment | $ 2,067 | $ 1,026 | $ 3,686 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unissued common shares reserved for future grants | 19.3 | 24.5 | ||
Total share-based compensation expense | $ 134,000,000 | $ 115,000,000 | $ 116,000,000 | |
Related income tax benefit | $ 26,000,000 | 26,000,000 | 43,000,000 | |
Weighted-average remaining life of currently exercisable options | 2 years 9 months 18 days | |||
Weighted-average remaining life of currently outstanding options | 4 years | |||
Fair value of options vested | $ 0 | $ 0 | $ 9,000,000 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Grant date weighted average fair value (in dollars per share) | $ 72.65 | $ 56.19 | $ 74.05 | |
Unrecognized compensation expenses | $ 125,000,000 | |||
Weighted-average period during which unrecognized compensation is expected to be recognized | 2 years 8 months 12 days | |||
Fair value of shares vested | $ 119,000,000 | $ 87,000,000 | $ 75,000,000 | |
Restricted Stock Units | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Units | Cliff Vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Stock Units | Graduated Vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Performance Share Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Grant date weighted average fair value (in dollars per share) | $ 70.94 | $ 55.93 | $ 71.37 | |
Weighted-average period during which unrecognized compensation is expected to be recognized | 1 year 2 months 12 days | |||
Fair value of shares vested | $ 43,000,000 | $ 30,000,000 | $ 1,000,000 | |
Future maximum compensation expense | 144,000,000 | |||
Price-vested Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expenses | $ 5,000,000 | |||
Weighted-average period during which unrecognized compensation is expected to be recognized | 1 year 3 months 18 days | |||
Post-exercise holding period required | 1 year |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Activity and Performance Share Unit Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 3,763 | ||
Granted (in shares) | 2,269 | ||
Forfeited (in shares) | (485) | ||
Vested (in shares) | (1,732) | ||
Ending balance (in shares) | 3,815 | 3,763 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 64.35 | ||
Granted (in dollars per share) | 72.65 | $ 56.19 | $ 74.05 |
Forfeited (in dollars per share) | 66.25 | ||
Vested (in dollars per share) | 68.62 | ||
Ending balance (in dollars per share) | $ 66.86 | $ 64.35 | |
Number of outstanding units after applying actual or expected payout rates | 3,708 | ||
Performance Share Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 3,824 | ||
Granted (in shares) | 1,121 | ||
Forfeited (in shares) | (741) | ||
Vested (in shares) | (581) | ||
Ending balance (in shares) | 3,623 | 3,824 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 68.23 | ||
Granted (in dollars per share) | 70.94 | $ 55.93 | $ 71.37 |
Forfeited (in dollars per share) | 64.16 | ||
Vested (in dollars per share) | 74.15 | ||
Ending balance (in dollars per share) | $ 67.47 | $ 68.23 | |
Number of outstanding units after applying actual or expected payout rates | 2,004 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Stock Options Outstanding and Exercisable | ||
Beginning balance (in shares) | 5,938 | |
Granted (in shares) | 0 | |
Expired/ forfeited (in shares) | (89) | |
Exercised/issued (in shares) | (1,859) | |
Ending balance (in shares) | 3,990 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 54.53 | |
Granted (in dollars per share) | 0 | |
Expired/forfeited (in dollars per share) | 53.85 | |
Exercised/issued (in dollars per share) | 52.53 | |
Ending balance (in dollars per share) | $ 55.49 | |
Intrinsic value outstanding | $ 63 | $ 109 |
Number of options exercisable (in shares) | 2,039 | 3,913 |
Exercise price exercisable (in dollars per share) | $ 55.38 | $ 53.97 |
Intrinsic value exercisable | $ 32 | $ 74 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Stock Option Exercises (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cash received for exercise price | $ 96 | $ 109 | $ 219 |
Intrinsic value | 50 | 34 | 103 |
Income tax benefit | $ 12 | $ 13 | $ 40 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019USD ($)individual | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Defined Contribution Plans | |||
Maximum invested percentage of compensation by participants in defined contribution 401(k) plan | 80.00% | ||
Percentage match by company to team member's contribution | 100.00% | ||
Maximum employer contribution match, percentage of total compensation | 5.00% | ||
Nonqualified unfunded deferred compensation plan for members whose participation in 401(k) plan is limited, number of employees (in number of individuals) | individual | 2,100 | ||
Unfunded nonqualified deferred compensation plan for members whose participation in 401(k) plan is limited, percent credited to accounts of active participants | 2.00% | ||
Nonqualified unfunded deferred compensation plan frozen in 1996, number of current active and retired participants (in number of individuals) | individual | 50 | ||
Total liability under the plans | $ 517 | $ 542 | |
Plan Expenses 401(k) plan | |||
401(k) plan matching contributions expense | 229 | 219 | $ 197 |
Nonqualified deferred compensation plans | |||
Benefits expense | 18 | 83 | 58 |
Related investment expense (income) | 6 | (48) | (38) |
Nonqualified plan net expense | $ 24 | $ 35 | $ 20 |
Pension Plans - Schedule of Rec
Pension Plans - Schedule of Recognition of Funded/(Underfunded) Status (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 3,925 | $ 4,117 | |
Qualified Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligations | 3,928 | 4,092 | $ 3,760 |
Fair value of plan assets | 3,925 | 4,117 | 3,785 |
Funded / (underfunded) status | (3) | 25 | |
Nonqualified Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligations | 30 | 32 | 32 |
Fair value of plan assets | 0 | 0 | $ 0 |
Funded / (underfunded) status | $ (30) | $ (32) |
Pension Plans - Schedule of Est
Pension Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Feb. 02, 2019USD ($) |
Estimated Future Benefit Payments | |
2019 | $ 284 |
2020 | 202 |
2021 | 211 |
2022 | 219 |
2023 | 226 |
2024-2028 | $ 1,235 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Pension Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 70 | $ 27 | $ 2 |
SG&A Expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost benefits earned during the period | 95 | 86 | 87 |
Net Other (Income) / Expense | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on projected benefit obligation | 146 | 140 | 134 |
Expected return on assets | (246) | (250) | (256) |
Amortization of losses | 82 | 61 | 46 |
Amortization of prior service cost | (11) | (11) | (11) |
Settlement and special termination charges | $ 4 | $ 1 | $ 2 |
Pension Plans - Schedule of Ben
Pension Plans - Schedule of Benefit Obligation Weighted Average Assumptions (Details) | Feb. 02, 2019 | Feb. 03, 2018 |
Retirement Benefits [Abstract] | ||
Discount rate | 4.28% | 3.93% |
Average assumed rate of compensation increase | 3.00% | 3.00% |
Pension Plans - Schedule of N_2
Pension Plans - Schedule of Net Periodic Benefit Expense Weighted Average Assumptions (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.93% | 4.40% | 4.70% |
Expected long-term rate of return on plan assets | 6.30% | 6.55% | 6.80% |
Average assumed rate of compensation increase | 3.00% | 3.00% | 3.00% |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) | 12 Months Ended |
Feb. 02, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Adjustments (as a percent) | 20.00% |
Adjustment period | 5 years |
Domestic equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 6.50% |
International equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 7.50% |
Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 4.50% |
Balanced Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 7.50% |
Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 8.50% |
5-Year | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual rate of return on qualified plan assets (as percent) | 5.00% |
Annual rate of return on qualified plan assets period | 5 years |
10-Year | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual rate of return on qualified plan assets (as percent) | 7.30% |
Annual rate of return on qualified plan assets period | 10 years |
15-Year | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual rate of return on qualified plan assets (as percent) | 6.70% |
Annual rate of return on qualified plan assets period | 15 years |
20-Year | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual rate of return on qualified plan assets (as percent) | 6.00% |
Annual rate of return on qualified plan assets period | 20 years |
Pension Plans - Schedule of Cha
Pension Plans - Schedule of Change in Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Qualified Plans | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Beginning balance | $ 4,092 | $ 3,760 |
Service cost | 94 | 85 |
Interest cost | 145 | 139 |
Actuarial (gain)/loss | (168) | 270 |
Participant contributions | 6 | 6 |
Benefits paid | (241) | (168) |
Ending balance | 3,928 | 4,092 |
Nonqualified Plans | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Beginning balance | 32 | 32 |
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Actuarial (gain)/loss | 0 | 1 |
Participant contributions | 0 | 0 |
Benefits paid | (4) | (3) |
Ending balance | $ 30 | $ 32 |
Pension Plans - Schedule of C_2
Pension Plans - Schedule of Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 4,117 | |
Ending balance | 3,925 | $ 4,117 |
Qualified Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 4,117 | 3,785 |
Actual return on plan assets | (66) | 493 |
Employer contributions | 109 | 1 |
Participant contributions | 6 | 6 |
Benefits paid | (241) | (168) |
Ending balance | 3,925 | 4,117 |
Nonqualified Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 4 | 3 |
Participant contributions | 0 | 0 |
Benefits paid | (4) | (3) |
Ending balance | $ 0 | $ 0 |
Pension Plans - Schedule of Ass
Pension Plans - Schedule of Asset Category (Details) | Feb. 02, 2019 | Feb. 03, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 100.00% | |
Actual Allocation | 100.00% | 100.00% |
Domestic equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 14.00% | |
Actual Allocation | 13.00% | 16.00% |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 9.00% | |
Actual Allocation | 9.00% | 10.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 45.00% | |
Actual Allocation | 47.00% | 44.00% |
Balanced funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 23.00% | |
Actual Allocation | 24.00% | 23.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 9.00% | |
Actual Allocation | 7.00% | 7.00% |
Equity Securities, Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of total plan assets (less than) | 1.00% | 1.00% |
Pension Plans - Schedule of Fai
Pension Plans - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | $ 3,925 | $ 4,117 |
Fair value, Levels 1 and 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 1,769 | 1,699 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 3 | 4 |
Level 2 | Government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 631 | 531 |
Level 2 | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 1,123 | 1,145 |
Level 2 | Derivatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 12 | 19 |
NAV | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 100 | 185 |
NAV | Common collective trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 828 | 966 |
NAV | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 54 | 55 |
NAV | Balanced funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 952 | 959 |
NAV | Private equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 84 | 97 |
NAV | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | $ 138 | $ 156 |
Pension Plans - Schedule of Amo
Pension Plans - Schedule of Amounts in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 1,060 | $ 1,001 |
Prior service credits | (24) | (35) |
Amounts in Accumulated Other Comprehensive Income (a)(b) | 1,036 | 966 |
Amounts in AOCI, net of tax | 772 | $ 720 |
Amortization expense expected in next fiscal year, before tax | 51 | |
Amortization expense expected in next fiscal year, net of tax | $ 38 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Beginning balance | $ 11,651 | [1] | $ 10,915 | $ 11,651 | [1] | $ 10,915 | $ 12,965 | |||||||||
Ending balance | $ 11,297 | $ 11,651 | [1] | 11,297 | 11,651 | [1] | 10,915 | |||||||||
Income tax expense (benefit) | 216 | $ 97 | $ 223 | 210 | (76) | $ 135 | $ 307 | 355 | 746 | 722 | [1] | 1,295 | [1] | |||
Net interest expense | 110 | 115 | 115 | 121 | 131 | 251 | 131 | 140 | 461 | 653 | [1] | 991 | [1] | |||
Selling, general and administrative expenses | 4,376 | 3,937 | 3,865 | 3,545 | 4,454 | 3,733 | 3,601 | 3,353 | 15,723 | 15,140 | [1] | 14,217 | [1] | |||
Net earnings | (799) | $ (622) | $ (799) | (718) | (1,087) | $ (478) | $ (671) | (678) | (2,937) | (2,914) | [1] | (2,734) | [1] | |||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Net earnings | 56 | |||||||||||||||
Cash Flow Hedges | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Beginning balance | (14) | (14) | ||||||||||||||
Other Comprehensive Income / (Loss) before reclassifications, net of tax | 0 | |||||||||||||||
Amounts reclassified from AOCI, net of tax | 1 | |||||||||||||||
Ending balance | (13) | (14) | (13) | (14) | ||||||||||||
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Net interest expense | 1 | |||||||||||||||
Currency Translation Adjustment | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Beginning balance | (13) | (13) | ||||||||||||||
Other Comprehensive Income / (Loss) before reclassifications, net of tax | (7) | |||||||||||||||
Amounts reclassified from AOCI, net of tax | 0 | |||||||||||||||
Ending balance | (20) | (13) | (20) | (13) | ||||||||||||
Pension and Other Benefit | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Beginning balance | (720) | (720) | ||||||||||||||
Other Comprehensive Income / (Loss) before reclassifications, net of tax | (107) | |||||||||||||||
Amounts reclassified from AOCI, net of tax | 55 | |||||||||||||||
Ending balance | (772) | (720) | (772) | (720) | ||||||||||||
Pension and Other Benefit | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Income tax expense (benefit) | 19 | |||||||||||||||
Selling, general and administrative expenses | 55 | |||||||||||||||
Accumulated Other Comprehensive (Loss) / Income | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||
Beginning balance | $ (747) | $ (638) | (747) | (638) | (629) | |||||||||||
Other Comprehensive Income / (Loss) before reclassifications, net of tax | (114) | |||||||||||||||
Amounts reclassified from AOCI, net of tax | 56 | |||||||||||||||
Ending balance | $ (805) | $ (747) | $ (805) | $ (747) | $ (638) | |||||||||||
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenue | $ 22,977 | $ 17,821 | $ 17,776 | $ 16,781 | $ 22,983 | $ 16,874 | $ 16,634 | $ 16,223 | $ 75,356 | $ 72,714 | [1] | $ 70,271 | [1] | |
Cost of sales | 16,900 | 12,535 | 12,239 | 11,625 | 16,795 | 11,712 | 11,419 | 11,199 | 53,299 | 51,125 | [1] | 49,145 | [1] | |
Selling, general, and administrative expenses | 4,376 | 3,937 | 3,865 | 3,545 | 4,454 | 3,733 | 3,601 | 3,353 | 15,723 | 15,140 | [1] | 14,217 | [1] | |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 584 | 530 | 539 | 570 | 605 | 582 | 521 | 516 | 2,224 | 2,225 | [1] | 2,045 | [1] | |
Operating income | 1,117 | 819 | 1,133 | 1,041 | 1,129 | 847 | 1,093 | 1,155 | 4,110 | 4,224 | [1] | 4,864 | [1] | |
Net interest expense | 110 | 115 | 115 | 121 | 131 | 251 | 131 | 140 | 461 | 653 | [1] | 991 | [1] | |
Net other (income) / expense | (7) | (9) | (4) | (7) | (14) | (15) | (15) | (15) | (27) | (59) | [1] | (88) | [1] | |
Earnings from continuing operations before income taxes | 1,014 | 713 | 1,022 | 927 | 1,012 | 611 | 977 | 1,030 | 3,676 | 3,630 | [1] | 3,961 | [1] | |
Provision for income taxes | 216 | 97 | 223 | 210 | (76) | 135 | 307 | 355 | 746 | 722 | [1] | 1,295 | [1] | |
Net earnings from continuing operations | 798 | 616 | 799 | 717 | 1,088 | 476 | 670 | 675 | 2,930 | 2,908 | [1] | 2,666 | [1] | |
Discontinued operations, net of tax | 1 | 6 | 0 | 1 | (1) | 2 | 1 | 3 | 7 | 6 | [1] | 68 | [1] | |
Net earnings | $ 799 | $ 622 | $ 799 | $ 718 | $ 1,087 | $ 478 | $ 671 | $ 678 | $ 2,937 | $ 2,914 | [1] | $ 2,734 | [1] | |
Basic earnings per share | ||||||||||||||
Continuing operations (in dollars per share) | $ 1.53 | $ 1.17 | $ 1.50 | $ 1.34 | $ 2.01 | $ 0.87 | $ 1.22 | $ 1.22 | $ 5.54 | [2] | $ 5.32 | [1],[2] | $ 4.61 | [1],[2] |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.01 | [2] | 0.01 | [1],[2] | 0.12 | [1],[2] |
Net earnings per share (in dollars per share) | 1.54 | 1.18 | 1.50 | 1.34 | 2.01 | 0.88 | 1.22 | 1.23 | 5.55 | [2] | 5.32 | [1],[2] | 4.73 | [1],[2] |
Diluted earnings per share | ||||||||||||||
Continuing operations (in dollars per share) | 1.52 | 1.16 | 1.49 | 1.33 | 1.99 | 0.87 | 1.21 | 1.21 | 5.50 | [2] | 5.29 | [1],[2] | 4.58 | [1],[2] |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.01 | [2] | 0.01 | [1],[2] | 0.12 | [1],[2] |
Net earnings per share (in dollars per share) | 1.52 | 1.17 | 1.49 | 1.33 | 1.99 | 0.87 | 1.22 | 1.22 | 5.51 | [2] | 5.29 | [1],[2] | 4.69 | [1],[2] |
Dividends declared per share (in dollars per share) | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.60 | $ 2.54 | $ 2.46 | $ 2.36 | |||
Sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenue | $ 22,734 | $ 17,590 | $ 17,552 | $ 16,556 | $ 22,734 | $ 16,647 | $ 16,410 | $ 15,995 | $ 74,433 | $ 71,786 | [1] | $ 69,414 | [1] | |
Other revenue | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenue | $ 243 | $ 231 | $ 224 | $ 225 | $ 249 | $ 227 | $ 224 | $ 228 | $ 923 | $ 928 | [1] | $ 857 | [1] | |
[1] | Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions. | |||||||||||||
[2] | Per share amounts may not foot due to rounding |