Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2019 | May 24, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | TARGET CORP | |
Entity Central Index Key | 0000027419 | |
Document Type | 10-Q | |
Document Period End Date | May 4, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 512,334,476 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Revenue | $ 17,627 | $ 16,781 |
Cost of sales | 12,248 | 11,625 |
Selling, general and administrative expenses | 3,663 | 3,545 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 581 | 570 |
Operating income | 1,135 | 1,041 |
Net interest expense | 126 | 121 |
Net other (income) / expense | (12) | (7) |
Earnings from continuing operations before income taxes | 1,021 | 927 |
Provision for income taxes | 229 | 210 |
Net earnings from continuing operations | 792 | 717 |
Discontinued operations, net of tax | 3 | 1 |
Net earnings | $ 795 | $ 718 |
Basic earnings per share | ||
Continuing operations (in dollars per share) | $ 1.54 | $ 1.34 |
Discontinued operations (in dollars per share) | 0 | 0 |
Net earnings per share (in dollars per share) | 1.54 | 1.34 |
Diluted earnings per share | ||
Continuing operations (in dollars per share) | 1.53 | 1.33 |
Discontinued operations (in dollars per share) | 0 | 0 |
Net earnings per share (in dollars per share) | $ 1.53 | $ 1.33 |
Weighted average common shares outstanding | ||
Basic (in shares) | 515.7 | 536.9 |
Diluted (in shares) | 519.5 | 541 |
Antidilutive shares (in shares) | 0.1 | 2.2 |
Sales | ||
Revenue | $ 17,401 | $ 16,556 |
Other revenue | ||
Revenue | $ 226 | $ 225 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 795 | $ 718 |
Other comprehensive income | ||
Pension, net of tax | 10 | 13 |
Currency translation adjustment and cash flow hedges, net of tax | 3 | (3) |
Other comprehensive income | 13 | 10 |
Comprehensive income | $ 808 | $ 728 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Assets | |||
Cash and cash equivalents | $ 1,173 | $ 1,556 | $ 1,060 |
Inventory | 9,060 | 9,497 | 8,652 |
Other current assets | 1,374 | 1,466 | 1,164 |
Total current assets | 11,607 | 12,519 | 10,876 |
Property and equipment | |||
Land | 6,061 | 6,064 | 6,090 |
Buildings and improvements | 29,573 | 29,240 | 28,363 |
Fixtures and equipment | 5,401 | 5,912 | 5,135 |
Computer hardware and software | 2,553 | 2,544 | 2,511 |
Construction-in-progress | 574 | 460 | 639 |
Accumulated depreciation | (18,456) | (18,687) | (17,971) |
Property and equipment, net | 25,706 | 25,533 | 24,767 |
Operating lease assets | 2,019 | 1,965 | 1,958 |
Other noncurrent assets | 1,287 | 1,273 | 1,328 |
Total assets | 40,619 | 41,290 | 38,929 |
Liabilities and shareholders’ investment | |||
Accounts payable | 8,360 | 9,761 | 8,131 |
Accrued and other current liabilities | 3,823 | 4,201 | 3,630 |
Current portion of long-term debt and other borrowings | 1,056 | 1,052 | 283 |
Total current liabilities | 13,239 | 15,014 | 12,044 |
Long-term debt and other borrowings | 11,357 | 10,223 | 11,107 |
Noncurrent operating lease liabilities | 2,064 | 2,004 | 2,007 |
Deferred income taxes | 1,034 | 972 | 744 |
Other noncurrent liabilities | 1,808 | 1,780 | 1,869 |
Total noncurrent liabilities | 16,263 | 14,979 | 15,727 |
Shareholders’ investment | |||
Common stock | 43 | 43 | 44 |
Additional paid-in capital | 5,908 | 6,042 | 5,664 |
Retained earnings | 5,958 | 6,017 | 6,187 |
Accumulated other comprehensive loss | (792) | (805) | (737) |
Total shareholders’ investment | 11,117 | 11,297 | 11,158 |
Total liabilities and shareholders’ investment | $ 40,619 | $ 41,290 | $ 38,929 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Statement of Financial Position [Abstract] | |||
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.0833 | $ 0.0833 | $ 0.0833 |
Common stock, shares issued | 512,312,434 | 517,761,600 | 532,916,612 |
Common stock, shares outstanding | 512,312,434 | 517,761,600 | 532,916,612 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |||
May 04, 2019 | Feb. 02, 2019 | Aug. 04, 2018 | May 05, 2018 | |
Operating activities | ||||
Net earnings | $ 795 | $ 799 | $ 799 | $ 718 |
Earnings from discontinued operations, net of tax | 3 | 1 | ||
Net earnings from continuing operations | 792 | 717 | ||
Adjustments to reconcile net earnings to cash provided by operations | ||||
Depreciation and amortization | 644 | 631 | ||
Share-based compensation expense | 46 | 42 | ||
Deferred income taxes | 59 | 48 | ||
Noncash losses / (gains) and other, net | 10 | 40 | ||
Changes in operating accounts | ||||
Inventory | 438 | (55) | ||
Other assets | 17 | 26 | ||
Accounts payable | (1,402) | (604) | ||
Accrued and other liabilities | (281) | (333) | ||
Cash provided by operating activities—continuing operations | 323 | 512 | ||
Cash provided by operating activities—discontinued operations | 0 | 2 | ||
Cash provided by operations | 323 | 514 | ||
Investing activities | ||||
Expenditures for property and equipment | (655) | (827) | ||
Proceeds from disposal of property and equipment | 5 | 4 | ||
Other investments | 1 | 5 | ||
Cash required for investing activities | (649) | (818) | ||
Financing activities | ||||
Additions to long-term debt | 994 | 0 | ||
Reductions of long-term debt | (13) | (12) | ||
Dividends paid | (330) | (334) | ||
Repurchase of stock | (320) | (524) | ||
Accelerated share repurchase pending final settlement | (400) | (425) | ||
Stock option exercises | 12 | 16 | ||
Cash required for financing activities | (57) | (1,279) | ||
Net decrease in cash and cash equivalents | (383) | (1,583) | ||
Cash and cash equivalents at beginning of period | 1,556 | $ 1,060 | 2,643 | |
Cash and cash equivalents at end of period | 1,173 | $ 1,556 | 1,060 | |
Supplemental information | ||||
Leased assets obtained in exchange for new finance lease liabilities | 126 | 5 | ||
Leased assets obtained in exchange for new operating lease liabilities | $ 107 | $ 113 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Aug. 04, 2018 | |
Increase (Decrease) in Shareholders' Investment | ||||||
Beginning balance (in shares) | 517,761,600 | 532,916,612 | ||||
Beginning balance | $ 11,297 | $ 11,080 | $ 11,167 | $ 11,158 | $ 11,651 | $ 11,651 |
Net earnings | 795 | 799 | 622 | 799 | 718 | |
Other comprehensive income (loss) | 13 | (91) | 9 | 14 | 10 | |
Dividends declared | (330) | (336) | (338) | (341) | (333) | |
Repurchase of stock | (277) | (167) | (2) | (7) | (494) | |
Accelerated share repurchase pending final settlement | (400) | (450) | (525) | (425) | ||
Stock options and awards | $ 19 | $ 12 | 72 | 69 | $ 31 | |
Ending balance (in shares) | 512,312,434 | 517,761,600 | 532,916,612 | |||
Ending balance | $ 11,117 | $ 11,297 | $ 11,080 | $ 11,167 | $ 11,158 | $ 11,167 |
Common Stock | ||||||
Increase (Decrease) in Shareholders' Investment | ||||||
Beginning balance (in shares) | 517,800,000 | 521,800,000 | 526,100,000 | 532,900,000 | 541,700,000 | 541,700,000 |
Beginning balance | $ 43 | $ 43 | $ 44 | $ 44 | $ 45 | $ 45 |
Repurchase of stock (in shares) | (3,600,000) | (4,700,000) | (1,700,000) | (2,900,000) | (6,900,000) | |
Repurchase of stock | $ (1) | $ (1) | ||||
Accelerated share repurchase pending final settlement (in shares) | (3,000,000) | (3,500,000) | (4,600,000) | (2,900,000) | ||
Stock options and awards (in shares) | 1,100,000 | 700,000 | 900,000 | 700,000 | 1,000,000 | |
Ending balance (in shares) | 512,300,000 | 517,800,000 | 521,800,000 | 526,100,000 | 532,900,000 | 526,100,000 |
Ending balance | $ 43 | $ 43 | $ 43 | $ 44 | $ 44 | $ 44 |
Additional Paid-in Capital | ||||||
Increase (Decrease) in Shareholders' Investment | ||||||
Beginning balance | 6,042 | 5,867 | 5,788 | 5,664 | 5,858 | 5,858 |
Repurchase of stock | 163 | 170 | 225 | |||
Accelerated share repurchase pending final settlement | (153) | (163) | (170) | (225) | ||
Stock options and awards | 19 | 12 | 72 | 69 | 31 | |
Ending balance | 5,908 | 6,042 | 5,867 | 5,788 | 5,664 | 5,788 |
Retained Earnings | ||||||
Increase (Decrease) in Shareholders' Investment | ||||||
Beginning balance | 6,017 | 5,884 | 6,058 | 6,187 | 6,495 | 6,495 |
Net earnings | 795 | 799 | 622 | 799 | 718 | |
Dividends declared | (330) | (336) | (338) | (341) | (333) | |
Repurchase of stock | (277) | (330) | (171) | (232) | (493) | |
Accelerated share repurchase pending final settlement | (247) | (287) | (355) | (200) | ||
Ending balance | 5,958 | 6,017 | 5,884 | 6,058 | 6,187 | 6,058 |
Accumulated Other Comprehensive(Loss)/Income | ||||||
Increase (Decrease) in Shareholders' Investment | ||||||
Beginning balance | (805) | (714) | (723) | (737) | (747) | (747) |
Other comprehensive income (loss) | 13 | (91) | 9 | 14 | 10 | |
Ending balance | $ (792) | $ (805) | $ (714) | $ (723) | $ (737) | $ (723) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 0.64 | $ 0.62 | $ 2.54 |
Accounting Policies
Accounting Policies | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies These unaudited condensed consolidated financial statements are prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States (U.S.) generally accepted accounting principles (U.S. GAAP) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statement disclosures in our 2018 Form 10-K. We use the same accounting policies in preparing quarterly and annual financial statements. Unless otherwise noted, amounts presented within the Notes to Consolidated Financial Statements refer to our continuing operations. 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 U.S. The vast majority of our long-lived assets are located within the U.S. Due to the seasonal nature of our business, quarterly revenues, expenses, earnings, and cash flows are not necessarily indicative of the results that may be expected for the full year. |
Revenues
Revenues | 3 Months Ended |
May 04, 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). Revenues Three Months Ended (millions) May 4, May 5, Apparel and accessories (a) $ 3,290 $ 3,113 Beauty and household essentials (a) 4,971 4,617 Food and beverage 3,722 3,587 Hardlines 2,385 2,313 Home furnishings and décor 3,001 2,903 Other 32 23 Sales 17,401 16,556 Credit card profit sharing 160 167 Other 66 58 Other revenue 226 225 Total revenue $ 17,627 $ 16,781 (a) For the three months ended May 4, 2019, and May 5, 2018, we reclassified certain non-apparel baby merchandise sales totaling $456 million and $390 million , respectively, from Apparel and Accessories to Beauty and Household Essentials. We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of May 4, 2019 , February 2, 2019 , and May 5, 2018 , the accrual for estimated returns was $124 million , $116 million , and $119 million , respectively. We have not historically had material adjustments to our returns estimates. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. (millions) February 2, Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability May 4, Gift card liability $ 840 $ 213 $ (322 ) $ 731 (a) Net of estimated breakage. 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 04, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements are reported in one of three levels reflecting the valuation techniques used to determine fair value. Fair Value Measurements - Recurring Basis Fair Value at (millions) Classification Pricing Category May 4, February 2, May 5, Assets Short-term investments Cash and Cash Equivalents Level 1 $ 419 $ 769 $ 311 Prepaid forward contracts Other Current Assets Level 1 21 19 21 Interest rate swaps Other Noncurrent Assets Level 2 23 10 — Liabilities Interest rate swaps Other Current Liabilities Level 2 1 3 — Interest rate swaps Other Noncurrent Liabilities Level 2 — — 10 Significant Financial Instruments not Measured at Fair Value (a) (millions) May 4, 2019 February 2, 2019 May 5, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (b) $ 11,243 $ 12,015 $ 10,247 $ 10,808 $ 10,442 $ 10,782 (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. |
Commercial Paper and Long-Term
Commercial Paper and Long-Term Debt | 3 Months Ended |
May 04, 2019 | |
Debt Disclosure [Abstract] | |
Commercial Paper and Long-Term Debt | Commercial Paper and Long-Term Debt During the three months ended May 4, 2019 , we issued $1,000 million of 10 -year unsecured fixed rate debt at 3.375 percent, in advance of the June 2019 maturity of $1,000 million of 2.3 percent unsecured fixed rate debt. We obtain short-term financing from time to time under our commercial paper program. For the three months ended May 4, 2019 , the maximum amount outstanding was $744 million , and the average daily amount outstanding was $140 million at a weighted average annual interest rate of 2.4 percent . For the three months ended May 5, 2018, the maximum amount outstanding was $658 million , and the average daily amount outstanding was $127 million at a weighted average annual interest rate of 1.8 percent . As of May 4, 2019 , and May 5, 2018, no balances were outstanding. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
May 04, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As required, we adopted Accounting Standards Update (ASU) No. 2017-12— Targeted Improvements to Accounting for Hedging Activities (Topic 815) , as of February 3, 2019. The new standard did not affect our consolidated net earnings, financial position, or cash flows. Our derivative instruments consist of interest rate swaps used to mitigate interest rate risk. As a result, we have counterparty credit exposure to large global financial institutions, which we monitor on an ongoing basis. Note 3 provides the fair value and classification of these instruments. In March 2019, we entered into interest rate swaps with a total notional amount of $1,000 million . With the addition of these swaps, as of May 4, 2019, we were party to seven interest rate swaps with notional amounts totaling $2,500 million , compared with three interest rate swaps with notional amounts totaling $1,250 million as of May 5, 2018. We pay a variable rate and receive a fixed rate under each of these agreements. All of the agreements are designated as fair value hedges, and all were perfectly effective during the three months ended May 4, 2019, and May 5, 2018. The gains and losses on the interest rate swaps and underlying debt recognized in Net Interest Expense were immaterial for each period presented. The notional amounts of our interest rate swaps approximate the carrying amount of the associated debt primarily because the cumulative hedging adjustments included in the debt carrying amount were immaterial in each period presented. |
Share Repurchase
Share Repurchase | 3 Months Ended |
May 04, 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. Three Months Ended (millions, except per share data) May 4, May 5, Total number of shares purchased 3.6 6.9 Average price paid per share $ 76.98 $ 71.24 Total investment $ 277 $ 494 Note: Activity related to the first quarter 2019 and 2018 ASR arrangements described below is omitted because the transactions were not fully settled as of May 4, 2019, and May 5, 2018, respectively. During the first quarter of 2019, we entered into an ASR to repurchase $275 to $400 million of our common stock under the existing $5 billion share repurchase program. Under the agreement, we paid $400 million and received an initial delivery of 3.0 million shares, which were retired, resulting in a $247 million reduction to Retained Earnings. As of May 4, 2019, $153 million is included as a reduction to Additional Paid-in Capital. During the first quarter of 2018, we entered into an ASR to repurchase $225 to $425 million of our common stock. Under the agreement, we paid $425 million and received an initial delivery of 2.9 million shares, which were retired, resulting in a $200 million reduction to Retained Earnings. As of May 5, 2018, $225 million was included as a reduction to Additional Paid-in Capital. Upon settlement in the second quarter of 2018, we received an additional 0.2 million shares, which were retired, and $200 million for the remaining amount not settled in shares. In total, we repurchased 3.1 million shares under the ASR for a total cash investment of $225 million ( $73.06 per share). |
Pension Benefits
Pension Benefits | 3 Months Ended |
May 04, 2019 | |
Retirement Benefits [Abstract] | |
Pension Benefits | Pension Benefits We provide pension plan benefits to eligible team members. Net Pension Benefits Expense Three Months Ended (millions) Classification May 4, May 5, Service cost benefits earned SG&A Expenses $ 23 $ 24 Interest cost on projected benefit obligation Net Other (Income) / Expense 37 37 Expected return on assets Net Other (Income) / Expense (62 ) (62 ) Amortization of losses Net Other (Income) / Expense 16 21 Amortization of prior service cost Net Other (Income) / Expense (3 ) (3 ) Total $ 11 $ 17 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) / Income | 3 Months Ended |
May 04, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) / Income | Accumulated Other Comprehensive (Loss) / Income (millions) Cash Flow Hedges Currency Translation Adjustment Pension Total February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) Other comprehensive income before reclassifications, net of tax — 3 — 3 Amounts reclassified from AOCI, net of tax — — 10 10 May 4, 2019 $ (13 ) $ (17 ) $ (762 ) $ (792 ) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
May 04, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | Revenues Three Months Ended (millions) May 4, May 5, Apparel and accessories (a) $ 3,290 $ 3,113 Beauty and household essentials (a) 4,971 4,617 Food and beverage 3,722 3,587 Hardlines 2,385 2,313 Home furnishings and décor 3,001 2,903 Other 32 23 Sales 17,401 16,556 Credit card profit sharing 160 167 Other 66 58 Other revenue 226 225 Total revenue $ 17,627 $ 16,781 (a) For the three months ended May 4, 2019, and May 5, 2018, we reclassified certain non-apparel baby merchandise sales totaling $456 million and $390 million , respectively, from Apparel and Accessories to Beauty and Household Essentials. |
Schedule of Gift Card Liability | Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. (millions) February 2, Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability May 4, Gift card liability $ 840 $ 213 $ (322 ) $ 731 (a) Net of estimated breakage. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 04, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements - Recurring Basis | Fair value measurements are reported in one of three levels reflecting the valuation techniques used to determine fair value. Fair Value Measurements - Recurring Basis Fair Value at (millions) Classification Pricing Category May 4, February 2, May 5, Assets Short-term investments Cash and Cash Equivalents Level 1 $ 419 $ 769 $ 311 Prepaid forward contracts Other Current Assets Level 1 21 19 21 Interest rate swaps Other Noncurrent Assets Level 2 23 10 — Liabilities Interest rate swaps Other Current Liabilities Level 2 1 3 — Interest rate swaps Other Noncurrent Liabilities Level 2 — — 10 |
Schedule of Significant Financial Instruments not Measured at Fair Value | Significant Financial Instruments not Measured at Fair Value (a) (millions) May 4, 2019 February 2, 2019 May 5, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (b) $ 11,243 $ 12,015 $ 10,247 $ 10,808 $ 10,442 $ 10,782 (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. |
Share Repurchase (Tables)
Share Repurchase (Tables) | 3 Months Ended |
May 04, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase (excluding ASR) | Three Months Ended (millions, except per share data) May 4, May 5, Total number of shares purchased 3.6 6.9 Average price paid per share $ 76.98 $ 71.24 Total investment $ 277 $ 494 Note: Activity related to the first quarter 2019 and 2018 ASR arrangements described below is omitted because the transactions were not fully settled as of May 4, 2019, and May 5, 2018, respectively. |
Pension Benefits (Tables)
Pension Benefits (Tables) | 3 Months Ended |
May 04, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plan Benefits | Net Pension Benefits Expense Three Months Ended (millions) Classification May 4, May 5, Service cost benefits earned SG&A Expenses $ 23 $ 24 Interest cost on projected benefit obligation Net Other (Income) / Expense 37 37 Expected return on assets Net Other (Income) / Expense (62 ) (62 ) Amortization of losses Net Other (Income) / Expense 16 21 Amortization of prior service cost Net Other (Income) / Expense (3 ) (3 ) Total $ 11 $ 17 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) / Income (Tables) | 3 Months Ended |
May 04, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Income (AOCI) by Component | (millions) Cash Flow Hedges Currency Translation Adjustment Pension Total February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) Other comprehensive income before reclassifications, net of tax — 3 — 3 Amounts reclassified from AOCI, net of tax — — 10 10 May 4, 2019 $ (13 ) $ (17 ) $ (762 ) $ (792 ) |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 17,627 | $ 16,781 |
Apparel and accessories | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,290 | 3,113 |
Apparel and accessories | Reclassified Revenue from Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (456) | (390) |
Beauty and household essentials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,971 | 4,617 |
Beauty and household essentials | Reclassified Revenue from Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 456 | 390 |
Food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,722 | 3,587 |
Hardlines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,385 | 2,313 |
Home furnishings and décor | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,001 | 2,903 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32 | 23 |
Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17,401 | 16,556 |
Credit card profit sharing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 160 | 167 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 66 | 58 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 226 | $ 225 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Reserve | $ 124 | $ 116 | $ 119 |
Revenues - Gift Card Liability
Revenues - Gift Card Liability (Details) $ in Millions | 3 Months Ended |
May 04, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 840 |
Gift Cards Issued During Current Period But Not Redeemed | 213 |
Revenue Recognized From Beginning Liability | (322) |
Ending balance | $ 731 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Assets | |||
Prepaid forward contracts classified as Other Current Assets | $ 1,374 | $ 1,466 | $ 1,164 |
Interest rate swaps classified as Other Noncurrent Assets | 1,287 | 1,273 | 1,328 |
Liabilities | |||
Interest rate swaps classified as Other Noncurrent Liabilities | 1,808 | 1,780 | 1,869 |
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | |||
Assets | |||
Prepaid forward contracts classified as Other Current Assets | 21 | 19 | 21 |
Fair value measured on recurring basis | Level 1 | Short-term investments | |||
Assets | |||
Short-term investments classified as Cash and Cash Equivalents | 419 | 769 | 311 |
Fair value measured on recurring basis | Level 2 | Interest rate swaps | |||
Assets | |||
Interest rate swaps classified as Other Noncurrent Assets | 23 | 10 | 0 |
Liabilities | |||
Interest rate swaps classified as Other Current Liabilities | 1 | 3 | 0 |
Interest rate swaps classified as Other Noncurrent Liabilities | $ 0 | $ 0 | $ 10 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Carrying Amount | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 11,243 | $ 10,247 | $ 10,442 |
Fair Value | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 12,015 | $ 10,808 | $ 10,782 |
Commercial Paper and Long-Ter_2
Commercial Paper and Long-Term Debt (Details) - USD ($) | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Maximum amount outstanding during period | $ 744,000,000 | $ 658,000,000 |
Average daily amount outstanding | $ 140,000,000 | $ 127,000,000 |
Weighted average interest rate | 2.40% | 1.80% |
Amount outstanding | $ 0 | $ 0 |
Unsecured Fixed Rate 3.375 Percent Debt, Maturing 2029 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Face amount | $ 1,000,000,000 | |
Term of debt | 10 years | |
Interest rate | 3.375% | |
Unsecured Fixed Rate 2.3 Percent Debt, Maturing June 2019 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Face amount | $ 1,000,000,000 | |
Interest rate | 2.30% |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - Interest Rate Swaps $ in Millions | 1 Months Ended | ||
Mar. 31, 2019USD ($) | May 04, 2019USD ($)swap | May 05, 2018USD ($)swap | |
Derivative Contracts - Effect on Results of Operations (millions) | |||
Notional amount of derivatives acquired | $ 1,000 | ||
Number of interest rate swaps | swap | 7 | 3 | |
Notional amount | $ 2,500 | $ 1,250 |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Share Repurchases (excluding ASR) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Equity [Abstract] | ||
Total number of shares purchased | 3.6 | 6.9 |
Average price paid per share (in dollars per share) | $ 76.98 | $ 71.24 |
Total investment | $ 277 | $ 494 |
Share Repurchase - Narrative (D
Share Repurchase - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | May 05, 2018 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Aug. 04, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and retired | $ 277,000,000 | $ 167,000,000 | $ 2,000,000 | $ 7,000,000 | $ 494,000,000 | ||
Share Repurchase Program 2017 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized shares for accelerated stock repurchase, low end | $ 225,000,000 | 275,000,000 | 225,000,000 | ||||
Authorized shares for accelerated stock repurchase, high end | 425,000,000 | 400,000,000 | 425,000,000 | ||||
Settlement of purchase agreement | 425,000,000 | 400,000,000 | $ 200,000,000 | $ 425,000,000 | $ 200,000,000 | ||
Authorized repurchase amount | $ 5,000,000,000 | ||||||
Repurchase of stock (in shares) | 3 | 0.2 | 2.9 | 3.1 | |||
Stock repurchased and retired | $ 225,000,000 | $ 247,000,000 | $ 200,000,000 | ||||
Shares receivable | $ 153,000,000 | ||||||
Prepaid repurchase amount | $ 225,000,000 | ||||||
Price paid per share (in dollars per share) | $ 73.06 |
Pension Benefits - Schedule of
Pension Benefits - Schedule of Pension Plan Benefits (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Net Pension Benefits Expense | ||
Service cost benefits earned | $ 23 | $ 24 |
Interest cost on projected benefit obligation | 37 | 37 |
Expected return on assets | (62) | (62) |
Amortization of losses | 16 | 21 |
Amortization of prior service cost | (3) | (3) |
Total | $ 11 | $ 17 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) / Income (Details) $ in Millions | 3 Months Ended |
May 04, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 11,297 |
Ending balance | 11,117 |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (13) |
Other comprehensive income before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | (13) |
Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (20) |
Other comprehensive income before reclassifications, net of tax | 3 |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | (17) |
Pension | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (772) |
Other comprehensive income before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | 10 |
Ending balance | (762) |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (805) |
Other comprehensive income before reclassifications, net of tax | 3 |
Amounts reclassified from AOCI, net of tax | 10 |
Ending balance | $ (792) |