Target (TGT) 10-Q 27 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Nov. 02, 2019	Nov. 22, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 2, 2019
Entity File Number	1-6049
Entity Registrant Name	TARGET CORP
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0215170
Entity Address, Address Line One	1000 Nicollet Mall
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55403
City Area Code	612
Local Phone Number	304-6073
Title of 12(b) Security	Common stock, par value $0.0833 per share
Trading Symbol	TGT
Entity Central Index Key	0000027419
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		506,737,121
Amendment Flag	false
Current Fiscal Year End Date	--02-01
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Revenue	$ 18,665	$ 17,821	$ 54,713	$ 52,379
Cost of sales	12,935	12,535	37,808	36,400
Selling, general and administrative expenses	4,153	3,937	11,728	11,347
Depreciation and amortization (exclusive of depreciation included in cost of sales)	575	530	1,717	1,639
Operating income	1,002	819	3,460	2,993
Net interest expense	113	115	359	352
Net other (income) / expense	(12)	(9)	(38)	(21)
Earnings from continuing operations before income taxes	901	713	3,139	2,662
Provision for income taxes	195	97	703	530
Net earnings from continuing operations	706	616	2,436	2,132
Discontinued operations, net of tax	8	6	11	7
Net earnings	$ 714	$ 622	$ 2,447	$ 2,139
Basic earnings per share
Continuing operations (in dollars per share)	$ 1.38	$ 1.17	$ 4.75	$ 4.01
Discontinued operations (in dollars per share)	0.02	0.01	0.02	0.01
Net earnings per share (in dollars per share)	1.40	1.18	4.77	4.02
Diluted earnings per share
Continuing operations (in dollars per share)	1.37	1.16	4.71	3.98
Discontinued operations (in dollars per share)	0.02	0.01	0.02	0.01
Net earnings per share (in dollars per share)	$ 1.39	$ 1.17	$ 4.74	$ 3.99
Weighted average common shares outstanding
Basic (in shares)	509.7	525.9	512.5	531.5
Diluted (in shares)	514.8	531.2	516.8	536.2
Antidilutive shares (in shares)	0	0	0	0
Sales
Revenue	$ 18,414	$ 17,590	$ 53,997	$ 51,699
Other revenue
Revenue	$ 251	$ 231	$ 716	$ 680

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Statement of Comprehensive Income [Abstract]
Net earnings	$ 714	$ 622	$ 2,447	$ 2,139
Other comprehensive income
Pension, net of tax	10	13	30	42
Currency translation adjustment and cash flow hedges, net of tax	(1)	(4)	2	(9)
Other comprehensive income	9	9	32	33
Comprehensive income	$ 723	$ 631	$ 2,479	$ 2,172

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Assets
Cash and cash equivalents	$ 969	$ 1,556	$ 825
Inventory	11,396	9,497	12,393
Other current assets	1,440	1,466	1,421
Total current assets	13,805	12,519	14,639
Property and equipment
Land	6,040	6,064	6,069
Buildings and improvements	30,467	29,240	29,090
Fixtures and equipment	6,032	5,912	5,784
Computer hardware and software	2,636	2,544	2,660
Construction-in-progress	298	460	384
Accumulated depreciation	(19,089)	(18,687)	(18,380)
Property and equipment, net	26,384	25,533	25,607
Operating lease assets	2,151	1,965	1,997
Other noncurrent assets	1,401	1,273	1,329
Total assets	43,741	41,290	43,572
Liabilities and shareholders’ investment
Accounts payable	11,258	9,761	11,959
Accrued and other current liabilities	4,191	4,201	4,096
Current portion of long-term debt and other borrowings	1,159	1,052	1,535
Total current liabilities	16,608	15,014	17,590
Long-term debt and other borrowings	10,513	10,223	10,104
Noncurrent operating lease liabilities	2,208	2,004	2,046
Deferred income taxes	1,215	972	970
Other noncurrent liabilities	1,652	1,780	1,782
Total noncurrent liabilities	15,588	14,979	14,902
Shareholders’ investment
Common stock	42	43	43
Additional paid-in capital	6,006	6,042	5,867
Retained earnings	6,270	6,017	5,884
Accumulated other comprehensive loss	(773)	(805)	(714)
Total shareholders’ investment	11,545	11,297	11,080
Total liabilities and shareholders’ investment	$ 43,741	$ 41,290	$ 43,572

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 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	506,677,740	517,761,600	521,810,597
Common stock, shares outstanding	506,677,740	517,761,600	521,810,597
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	9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018
Operating activities
Net earnings	$ 2,447	$ 2,139
Earnings from discontinued operations, net of tax	11	7
Net earnings from continuing operations	2,436	2,132
Adjustments to reconcile net earnings to cash provided by operations
Depreciation and amortization	1,905	1,826
Share-based compensation expense	116	106
Deferred income taxes	235	261
Noncash losses / (gains) and other, net	6	85
Changes in operating accounts
Inventory	(1,899)	(3,796)
Other assets	(10)	(140)
Accounts payable	1,473	3,298
Accrued and other liabilities	(121)	(158)
Cash provided by operating activities—continuing operations	4,141	3,614
Cash provided by operating activities—discontinued operations	18	10
Cash provided by operations	4,159	3,624
Investing activities
Expenditures for property and equipment	(2,403)	(2,873)
Proceeds from disposal of property and equipment	29	39
Other investments	14	15
Cash required for investing activities	(2,360)	(2,819)
Financing activities
Change in commercial paper, net	0	490
Additions to long-term debt	994	0
Reductions of long-term debt	(1,041)	(268)
Dividends paid	(995)	(1,001)
Repurchase of stock	(959)	(1,485)
Accelerated share repurchase pending final settlement	(450)	(450)
Stock option exercises	65	91
Cash required for financing activities	(2,386)	(2,623)
Net decrease in cash and cash equivalents	(587)	(1,818)
Cash and cash equivalents at beginning of period	1,556	2,643
Cash and cash equivalents at end of period	969	825
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	301	29
Leased assets obtained in exchange for new operating lease liabilities	$ 334	$ 228

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended							9 Months Ended
	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Nov. 02, 2019	Nov. 03, 2018
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)			517,761,600	521,810,597				517,761,600
Beginning balance	$ 11,836	$ 11,117	$ 11,297	$ 11,080	$ 11,167	$ 11,158	$ 11,651	$ 11,297	$ 11,651
Net earnings	714	938	795	799	622	799	718	2,447	2,139
Other comprehensive income (loss)	9	10	13	(91)	9	14	10	$ 32	$ 33
Dividends declared	(338)	(341)	(330)	(336)	(338)	(341)	(333)
Repurchase of stock	(296)	59	(277)	(167)	(2)	(7)	(494)
Accelerated share repurchase pending final settlement	(450)		(400)		(450)	(525)	(425)
Stock options and awards	$ 70	53	19	$ 12	$ 72	69	31
Ending balance (in shares)	506,677,740			517,761,600	521,810,597			506,677,740	521,810,597
Ending balance	$ 11,545	$ 11,836	$ 11,117	$ 11,297	$ 11,080	$ 11,167	$ 11,158	$ 11,545	$ 11,080
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	511,300,000	512,300,000	517,800,000	521,800,000	526,100,000	532,900,000	541,700,000	517,800,000	541,700,000
Beginning balance	$ 43	$ 43	$ 43	$ 43	$ 44	$ 44	$ 45	$ 43	$ 45
Repurchase of stock (in shares)	(3,000,000)	(1,300,000)	(3,600,000)	(4,700,000)	(1,700,000)	(2,900,000)	(6,900,000)
Repurchase of stock	$ (1)				$ (1)		$ (1)
Accelerated share repurchase pending final settlement (in shares)	(2,500,000)		(3,000,000)		(3,500,000)	(4,600,000)	(2,900,000)
Stock options and awards (in shares)	900,000	300,000	1,100,000	700,000	900,000	700,000	1,000,000
Ending balance (in shares)	506,700,000	511,300,000	512,300,000	517,800,000	521,800,000	526,100,000	532,900,000	506,700,000	521,800,000
Ending balance	$ 42	$ 43	$ 43	$ 43	$ 43	$ 44	$ 44	$ 42	$ 43
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,114	5,908	6,042	5,867	5,788	5,664	5,858	6,042	5,858
Repurchase of stock		153		163	170	225
Accelerated share repurchase pending final settlement	(178)		(153)		(163)	(170)	(225)
Stock options and awards	70	53	19	12	72	69	31
Ending balance	6,006	6,114	5,908	6,042	5,867	5,788	5,664	6,006	5,867
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,461	5,958	6,017	5,884	6,058	6,187	6,495	6,017	6,495
Net earnings	714	938	795	799	622	799	718
Dividends declared	(338)	(341)	(330)	(336)	(338)	(341)	(333)
Repurchase of stock	(295)	(94)	(277)	(330)	(171)	(232)	(493)
Accelerated share repurchase pending final settlement	(272)		(247)		(287)	(355)	(200)
Ending balance	6,270	6,461	5,958	6,017	5,884	6,058	6,187	6,270	5,884
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(782)	(792)	(805)	(714)	(723)	(737)	(747)	(805)	(747)
Other comprehensive income (loss)	9	10	13	(91)	9	14	10
Ending balance	$ (773)	$ (782)	$ (792)	$ (805)	$ (714)	$ (723)	$ (737)	$ (773)	$ (714)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		12 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Feb. 02, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.66	$ 0.64	$ 2.54

Accounting Policies

Accounting Policies	9 Months Ended
	Nov. 02, 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	9 Months Ended
	Nov. 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). Revenues Three Months Ended Nine Months Ended (millions) November 2, November 3, November 2, November 3, Apparel and accessories (a) $ 3,564 $ 3,219 $ 10,510 $ 9,803 Beauty and household essentials (a) 5,125 4,788 15,172 14,189 Food and beverage 3,717 3,611 10,899 10,570 Hardlines 2,460 2,478 7,348 7,292 Home furnishings and décor 3,527 3,476 9,985 9,781 Other 21 18 83 64 Sales 18,414 17,590 53,997 51,699 Credit card profit sharing 177 169 505 503 Other 74 62 211 177 Other revenue 251 231 716 680 Total revenue $ 18,665 $ 17,821 $ 54,713 $ 52,379 (a) We reclassified certain non-apparel baby merchandise sales totaling $406 million and $1,260 million for the three and nine months ended November 2, 2019 , respectively, and $403 million and $1,166 million for the three and nine months ended November 3, 2018 , 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 November 2, 2019 , February 2, 2019 , and November 3, 2018 , the accrual for estimated returns was $137 million , $116 million , and $125 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. Gift Card Liability Activity February 2, Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability November 2, (millions) Gift card liability $ 840 $ 386 $ (543 ) $ 683 (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	9 Months Ended
	Nov. 02, 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 November 2, February 2, November 3, Assets Short-term investments Cash and Cash Equivalents Level 1 $ 163 $ 769 $ 42 Prepaid forward contracts Other Current Assets Level 1 24 19 23 Interest rate swaps Other Noncurrent Assets Level 2 122 10 — Liabilities Interest rate swaps Other Current Liabilities Level 2 — 3 6 Interest rate swaps Other Noncurrent Liabilities Level 2 — — 7 Significant Financial Instruments Not Measured at Fair Value (a) (millions) November 2, 2019 February 2, 2019 November 3, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (b) $ 10,246 $ 11,870 $ 10,247 $ 10,808 $ 10,245 $ 10,396 (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.

Property and Equipment

Property and Equipment	9 Months Ended
	Nov. 02, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment We review long-lived assets for impairment when store performance expectations, events, or changes in circumstances—such as a decision to relocate or close a store or distribution center, discontinue projects, or make significant software changes—indicate that the asset’s carrying value may not be recoverable. We recognized impairment charges of $7 million and $21 million during the three and nine months ended November 2, 2019 , respectively, primarily resulting from store impairments. We recognized no impairment charges during the three months ended November 3, 2018 , and $85 million of impairment charges during the nine months ended November 3, 2018 , primarily resulting from planned store closures. The impairment charges are recorded in Selling, General and Administrative Expenses.

Commercial Paper and Long-Term

Commercial Paper and Long-Term Debt	9 Months Ended
	Nov. 02, 2019
Debt Disclosure [Abstract]
Commercial Paper and Long-Term Debt	Commercial Paper and Long-Term Debt In March 2019, we issued $1,000 million of 10 -year unsecured fixed rate debt at 3.375 percent, and in June 2019, we repaid $1,000 million of unsecured 2.3 percent fixed rate debt at maturity. Our commercial paper program provides a source of short-term financing. For the nine months ended November 2, 2019 , the maximum amount outstanding was $744 million , and the average daily amount outstanding was $55 million at a weighted average annual interest rate of 2.4 percent . For the nine months ended November 3, 2018 , the maximum amount outstanding was $658 million , and the average daily amount outstanding was $54 million at a weighted average annual interest rate of 1.9 percent . As of November 2, 2019 , no balances were outstanding. As of November 3, 2018 , $490 million was outstanding and is classified within Current Portion of Long-Term Debt and Other Borrowings on our Consolidated Statement of Financial Position.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Nov. 02, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments 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 , and in June 2019, interest rate swaps with a total notional amount of $1,000 million matured. As of November 2, 2019 , and November 3, 2018 , we were party to interest rate swaps with notional amounts totaling $1,500 million . 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 and nine months ended November 2, 2019 , and November 3, 2018 . Effect of Hedges on Debt (millions) November 2, February 2, November 3, Current portion of long-term debt and other borrowings Carrying amount of hedged debt $ — $ 996 $ 993 Cumulative hedging adjustments, included in carrying amount — (3 ) (6 ) Long-term debt and other borrowings Carrying amount of hedged debt 1,614 508 491 Cumulative hedging adjustments, included in carrying amount 122 10 (7 ) Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) November 2, November 3, November 2, November 3, Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 14 $ (4 ) $ 115 $ (7 ) Hedged debt (14 ) 4 (115 ) 7 Total $ — $ — $ — $ —

Share Repurchase

Share Repurchase	9 Months Ended
	Nov. 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. Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) November 2, 2019 November 3, 2018 November 2, November 3, Number of shares purchased 3.0 6.3 10.8 19.0 Average price paid per share $ 99.25 $ 84.00 $ 84.28 $ 76.38 Total investment $ 294 $ 526 $ 912 $ 1,451 Note: This table excludes activity related to the ASR arrangements described below because final settlement had not occurred as of November 2, 2019 , and November 3, 2018 , respectively. During the third quarter of 2019, we entered into an ASR arrangement to repurchase $300 to $450 million of our common stock. Under the agreement, we paid $450 million and received an initial delivery of 2.5 million shares, which were retired, resulting in a $272 million reduction to Retained Earnings. As of November 2, 2019 , $178 million is included in the Consolidated Statement of Financial Position as a reduction to Additional Paid-in Capital. During the third quarter of 2018, we entered into an ASR arrangement to repurchase $325 to $450 million of our common stock. Under the agreement, we paid $450 million and received an initial delivery of 3.5 million shares, which were retired, resulting in a $287 million reduction to Retained Earnings. As of November 3, 2018 , $163 million was included as a reduction to Additional Paid-in Capital. Upon final settlement in the fourth quarter of 2018, we received an additional 2.2 million shares, which were retired, and $3.6 million for the remaining amount not settled in shares. In total, we repurchased 5.7 million shares under the ASR arrangement for a total cash investment of $446 million ( $77.98

Pension Benefits

Pension Benefits	9 Months Ended
	Nov. 02, 2019
Retirement Benefits [Abstract]
Pension Benefits	Pension Benefits We provide pension plan benefits to eligible team members. Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) Classification November 2, November 3, November 2, November 3, Service cost benefits earned SG&A Expenses $ 23 $ 24 $ 69 $ 72 Interest cost on projected benefit obligation Net Other (Income) / Expense 37 37 111 110 Expected return on assets Net Other (Income) / Expense (62 ) (62 ) (186 ) (185 ) Amortization of losses Net Other (Income) / Expense 16 20 47 61 Amortization of prior service cost Net Other (Income) / Expense (3 ) (3 ) (8 ) (8 ) Settlement charges Net Other (Income) / Expense — 1 — 4 Total $ 11 $ 17 $ 33 $ 54

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) / Income	9 Months Ended
	Nov. 02, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive (Loss) / Income	Accumulated Other Comprehensive (Loss) / Income Change in Accumulated Other Comprehensive Income Cash Flow Hedges Currency Translation Adjustment Pension Total (millions) February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) Other comprehensive income before reclassifications, net of tax — 2 — 2 Amounts reclassified from AOCI, net of tax — — 30 30 November 2, 2019 $ (13 ) $ (18 ) $ (742 ) $ (773 )

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Nov. 02, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenues Three Months Ended Nine Months Ended (millions) November 2, November 3, November 2, November 3, Apparel and accessories (a) $ 3,564 $ 3,219 $ 10,510 $ 9,803 Beauty and household essentials (a) 5,125 4,788 15,172 14,189 Food and beverage 3,717 3,611 10,899 10,570 Hardlines 2,460 2,478 7,348 7,292 Home furnishings and décor 3,527 3,476 9,985 9,781 Other 21 18 83 64 Sales 18,414 17,590 53,997 51,699 Credit card profit sharing 177 169 505 503 Other 74 62 211 177 Other revenue 251 231 716 680 Total revenue $ 18,665 $ 17,821 $ 54,713 $ 52,379 (a) We reclassified certain non-apparel baby merchandise sales totaling $406 million and $1,260 million for the three and nine months ended November 2, 2019 , respectively, and $403 million and $1,166 million for the three and nine months ended November 3, 2018 , 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. Gift Card Liability Activity February 2, Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability November 2, (millions) Gift card liability $ 840 $ 386 $ (543 ) $ 683 (a) Net of estimated breakage.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Nov. 02, 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 November 2, February 2, November 3, Assets Short-term investments Cash and Cash Equivalents Level 1 $ 163 $ 769 $ 42 Prepaid forward contracts Other Current Assets Level 1 24 19 23 Interest rate swaps Other Noncurrent Assets Level 2 122 10 — Liabilities Interest rate swaps Other Current Liabilities Level 2 — 3 6 Interest rate swaps Other Noncurrent Liabilities Level 2 — — 7
Schedule of Significant Financial Instruments not Measured at Fair Value	Significant Financial Instruments Not Measured at Fair Value (a) (millions) November 2, 2019 February 2, 2019 November 3, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (b) $ 10,246 $ 11,870 $ 10,247 $ 10,808 $ 10,245 $ 10,396 (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.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Nov. 02, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives	Effect of Hedges on Debt (millions) November 2, February 2, November 3, Current portion of long-term debt and other borrowings Carrying amount of hedged debt $ — $ 996 $ 993 Cumulative hedging adjustments, included in carrying amount — (3 ) (6 ) Long-term debt and other borrowings Carrying amount of hedged debt 1,614 508 491 Cumulative hedging adjustments, included in carrying amount 122 10 (7 ) Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) November 2, November 3, November 2, November 3, Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 14 $ (4 ) $ 115 $ (7 ) Hedged debt (14 ) 4 (115 ) 7 Total $ — $ — $ — $ —

Share Repurchase (Tables)

Share Repurchase (Tables)	9 Months Ended
	Nov. 02, 2019
Equity [Abstract]
Schedule of Share Repurchase (excluding ASR)	Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) November 2, 2019 November 3, 2018 November 2, November 3, Number of shares purchased 3.0 6.3 10.8 19.0 Average price paid per share $ 99.25 $ 84.00 $ 84.28 $ 76.38 Total investment $ 294 $ 526 $ 912 $ 1,451 Note: This table excludes activity related to the ASR arrangements described below because final settlement had not occurred as of November 2, 2019 , and November 3, 2018 , respectively.

Pension Benefits (Tables)

Pension Benefits (Tables)	9 Months Ended
	Nov. 02, 2019
Retirement Benefits [Abstract]
Schedule of Pension Plan Benefits	Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) Classification November 2, November 3, November 2, November 3, Service cost benefits earned SG&A Expenses $ 23 $ 24 $ 69 $ 72 Interest cost on projected benefit obligation Net Other (Income) / Expense 37 37 111 110 Expected return on assets Net Other (Income) / Expense (62 ) (62 ) (186 ) (185 ) Amortization of losses Net Other (Income) / Expense 16 20 47 61 Amortization of prior service cost Net Other (Income) / Expense (3 ) (3 ) (8 ) (8 ) Settlement charges Net Other (Income) / Expense — 1 — 4 Total $ 11 $ 17 $ 33 $ 54

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive (Loss) / Income (Tables)	9 Months Ended
	Nov. 02, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of the Changes in Accumulated Other Comprehensive Income (AOCI) by Component	Change in Accumulated Other Comprehensive Income Cash Flow Hedges Currency Translation Adjustment Pension Total (millions) February 2, 2019 $ (13 ) $ (20 ) $ (772 ) $ (805 ) Other comprehensive income before reclassifications, net of tax — 2 — 2 Amounts reclassified from AOCI, net of tax — — 30 30 November 2, 2019 $ (13 ) $ (18 ) $ (742 ) $ (773 )

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 18,665	$ 17,821	$ 54,713	$ 52,379
Apparel and accessories
Disaggregation of Revenue [Line Items]
Revenue	3,564	3,219	10,510	9,803
Apparel and accessories | Reclassified Revenue from Contract with Customer
Disaggregation of Revenue [Line Items]
Revenue	(406)	(403)	(1,260)	(1,166)
Beauty and household essentials
Disaggregation of Revenue [Line Items]
Revenue	5,125	4,788	15,172	14,189
Beauty and household essentials | Reclassified Revenue from Contract with Customer
Disaggregation of Revenue [Line Items]
Revenue	406	403	1,260	1,166
Food and beverage
Disaggregation of Revenue [Line Items]
Revenue	3,717	3,611	10,899	10,570
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	2,460	2,478	7,348	7,292
Home furnishings and décor
Disaggregation of Revenue [Line Items]
Revenue	3,527	3,476	9,985	9,781
Other
Disaggregation of Revenue [Line Items]
Revenue	21	18	83	64
Sales
Disaggregation of Revenue [Line Items]
Revenue	18,414	17,590	53,997	51,699
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	177	169	505	503
Other
Disaggregation of Revenue [Line Items]
Revenue	74	62	211	177
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 251	$ 231	$ 716	$ 680

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Revenue from Contract with Customer [Abstract]
Reserve	$ 137	$ 116	$ 125

Revenues - Gift Card Liability

Revenues - Gift Card Liability (Details) $ in Millions	9 Months Ended
	Nov. 02, 2019USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 840
Gift Cards Issued During Current Period But Not Redeemed	386
Revenue Recognized From Beginning Liability	(543)
Ending balance	$ 683

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Assets
Prepaid forward contracts classified as Other Current Assets	$ 1,440	$ 1,466	$ 1,421
Interest rate swaps classified as Other Noncurrent Assets	1,401	1,273	1,329
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	1,652	1,780	1,782
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts classified as Other Current Assets	24	19	23
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	163	769	42
Fair value measured on recurring basis | Level 2 | Interest rate swaps
Assets
Interest rate swaps classified as Other Noncurrent Assets	122	10	0
Liabilities
Interest rate swaps classified as Other Current Liabilities	0	3	6
Interest rate swaps classified as Other Noncurrent Liabilities	$ 0	$ 0	$ 7

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 10,246	$ 10,247	$ 10,245
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 11,870	$ 10,808	$ 10,396

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Property, Plant and Equipment [Abstract]
Impairment charges	$ 7	$ 0	$ 21	$ 85

Commercial Paper and Long-Ter_2

Commercial Paper and Long-Term Debt (Details) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 31, 2019	Nov. 02, 2019	Nov. 03, 2018	Jun. 30, 2019
Commercial Paper
Debt Instrument [Line Items]
Maximum amount outstanding during period		$ 744,000,000	$ 658,000,000
Average daily amount outstanding		$ 55,000,000	$ 54,000,000
Weighted average interest rate		2.40%	1.90%
Amount outstanding		$ 0	$ 490,000,000
Unsecured Fixed Rate 3.375% 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% Debt, Maturing June 2019 | Unsecured Debt
Debt Instrument [Line Items]
Face amount				$ 1,000,000,000
Interest rate				2.30%

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Nov. 02, 2019	Jun. 30, 2019	Mar. 31, 2019	Nov. 03, 2018
Designated as Hedging Instrument | Interest Rate Swaps
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 1,500	$ 1,000	$ 1,000	$ 1,500

Derivative Financial Instrume_4

Derivative Financial Instruments - Effect of Hedges on Debt (Details) - USD ($) $ in Millions	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Current portion of long-term debt and other borrowings
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	$ 0	$ 996	$ 993
Cumulative hedging adjustments, included in carrying amount	0	(3)	(6)
Long-term debt and other borrowings
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	1,614	508	491
Cumulative hedging adjustments, included in carrying amount	$ 122	$ 10	$ (7)

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate swap designated as fair value hedges	$ 14	$ (4)	$ 115	$ (7)
Hedged debt	(14)	4	(115)	7
Total	$ 0	$ 0	$ 0	$ 0

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		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Equity [Abstract]
Number of shares purchased (in shares)	3	6.3	10.8	19
Average price paid per share (in dollars per share)	$ 99.25	$ 84	$ 84.28	$ 76.38
Total investment	$ 294	$ 526	$ 912	$ 1,451

Share Repurchase - Narrative (D

Share Repurchase - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended							6 Months Ended	9 Months Ended
	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 02, 2019	Nov. 02, 2019	Nov. 03, 2018
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired	$ 296	$ (59)	$ 277	$ 167	$ 2	$ 7	$ 494
Stock repurchased (in shares)	3				6.3				10.8	19
Share Repurchase Program 2017
Equity, Class of Treasury Stock [Line Items]
Authorized shares for accelerated stock repurchase, low end					$ 325					$ 325
Authorized shares for accelerated stock repurchase, high end					450					450
Settlement (payment) of purchase agreement				$ 3.6	$ (450)			$ 3.6		(450)
Repurchased and retired stock (in shares)				2.2	3.5
Shares receivable					$ 163					$ 163
Prepaid repurchase amount								$ 446
Stock repurchased (in shares)								5.7
Price paid per share (in dollars per share)								$ 77.98
Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Authorized shares for accelerated stock repurchase, low end	$ 300								$ 300
Authorized shares for accelerated stock repurchase, high end	450								450
Settlement (payment) of purchase agreement	$ (450)								(450)
Repurchased and retired stock (in shares)	2.5
Shares receivable	$ 178								$ 178
Retained Earnings
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired	295	$ 94	$ 277	$ 330	171	$ 232	$ 493
Retained Earnings | Share Repurchase Program 2017
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired					$ 287
Retained Earnings | Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired	$ 272

Pension Benefits (Details)

Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Net Pension Benefits Expense
Service cost benefits earned	$ 23	$ 24	$ 69	$ 72
Interest cost on projected benefit obligation	37	37	111	110
Expected return on assets	(62)	(62)	(186)	(185)
Amortization of losses	16	20	47	61
Amortization of prior service cost	(3)	(3)	(8)	(8)
Settlement charges	0	1	0	4
Total	$ 11	$ 17	$ 33	$ 54

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) / Income (Details) $ in Millions	9 Months Ended
	Nov. 02, 2019USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 11,297
Other comprehensive income before reclassifications, net of tax	2
Amounts reclassified from AOCI, net of tax	30
Ending balance	11,545
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	2
Amounts reclassified from AOCI, net of tax	0
Ending balance	(18)
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	30
Ending balance	(742)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(805)
Ending balance	$ (773)