Target (TGT) 10-Q 29 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	May 02, 2020	May 22, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 2, 2020
Document Transition Report	false
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
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		500,015,480
Entity Central Index Key	0000027419
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Revenue	$ 19,615	$ 17,627
Selling, general and administrative expenses	4,060	3,663
Depreciation and amortization (exclusive of depreciation included in cost of sales)	577	581
Operating income	468	1,135
Net interest expense	117	126
Net other (income) / expense	22	(12)
Earnings from continuing operations before income taxes	329	1,021
Provision for income taxes	45	229
Net earnings from continuing operations	284	792
Discontinued operations, net of tax	0	3
Net earnings	$ 284	$ 795
Basic earnings per share
Continuing operations (in dollars per share)	$ 0.57	$ 1.54
Discontinued operations (in dollars per share)	0	0
Net earnings per share (in dollars per share)	0.57	1.54
Diluted earnings per share
Continuing operations (in dollars per share)	0.56	1.53
Discontinued operations (in dollars per share)	0	0
Net earnings per share (in dollars per share)	$ 0.56	$ 1.53
Weighted average common shares outstanding
Basic (in shares)	501	515.7
Diluted (in shares)	505.8	519.5
Antidilutive shares (in shares)	0.2	0.1
Sales
Revenue	$ 19,371	$ 17,401
Cost of sales	14,510	12,248
Other revenue
Revenue	$ 244	$ 226

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 284	$ 795
Other comprehensive income
Pension, net of tax	22	10
Currency translation adjustment and cash flow hedges, net of tax	(8)	3
Other comprehensive income	14	13
Comprehensive income	$ 298	$ 808

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Assets
Cash and cash equivalents	$ 4,566	$ 2,577	$ 1,173
Inventory	8,584	8,992	9,060
Other current assets	1,465	1,333	1,374
Total current assets	14,615	12,902	11,607
Property and equipment
Land	6,034	6,036	6,061
Buildings and improvements	30,756	30,603	29,573
Fixtures and equipment	5,486	6,083	5,401
Computer hardware and software	2,597	2,692	2,553
Construction-in-progress	803	533	574
Accumulated depreciation	(19,087)	(19,664)	(18,456)
Property and equipment, net	26,589	26,283	25,706
Operating lease assets	2,235	2,236	2,019
Other noncurrent assets	1,367	1,358	1,287
Total assets	44,806	42,779	40,619
Liabilities and shareholders’ investment
Accounts payable	9,625	9,920	8,360
Accrued and other current liabilities	4,619	4,406	3,823
Current portion of long-term debt and other borrowings	168	161	1,056
Total current liabilities	14,412	14,487	13,239
Long-term debt and other borrowings	14,073	11,338	11,357
Noncurrent operating lease liabilities	2,249	2,275	2,064
Deferred income taxes	1,122	1,122	1,034
Other noncurrent liabilities	1,781	1,724	1,808
Total noncurrent liabilities	19,225	16,459	16,263
Shareholders’ investment
Common stock	42	42	43
Additional paid-in capital	6,206	6,226	5,908
Retained earnings	5,775	6,433	5,958
Accumulated other comprehensive loss	(854)	(868)	(792)
Total shareholders’ investment	11,169	11,833	11,117
Total liabilities and shareholders’ investment	$ 44,806	$ 42,779	$ 40,619

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	May 02, 2020	Feb. 01, 2020	May 04, 2019
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	499,919,691	504,198,962	512,312,434
Common stock, shares outstanding	499,919,691	504,198,962	512,312,434
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 02, 2020	Feb. 01, 2020	Aug. 03, 2019	May 04, 2019
Operating activities
Net earnings	$ 284	$ 834	$ 938	$ 795
Earnings from discontinued operations, net of tax	0			3
Net earnings from continuing operations	284			792
Adjustments to reconcile net earnings to cash provided by operations
Depreciation and amortization	641			644
Share-based compensation expense	49			46
Deferred income taxes	(4)			59
Noncash losses / (gains) and other, net	5			10
Changes in operating accounts
Inventory	408			438
Other assets	11			17
Accounts payable	(280)			(1,402)
Accrued and other liabilities	170			(281)
Cash provided by operations	1,284			323
Investing activities
Expenditures for property and equipment	(751)			(655)
Proceeds from disposal of property and equipment	6			5
Other investments	1			1
Cash required for investing activities	(744)			(649)
Financing activities
Additions to long-term debt	2,480			994
Reductions of long-term debt	(17)			(13)
Dividends paid	(332)			(330)
Repurchase of stock	(686)			(320)
Accelerated share repurchase pending final settlement	0			(400)
Stock option exercises	4			12
Cash provided by / (required for) financing activities	1,449			(57)
Net increase / (decrease) in cash and cash equivalents	1,989			(383)
Cash and cash equivalents at beginning of period	2,577		$ 1,173	1,556
Cash and cash equivalents at end of period	4,566	$ 2,577		1,173
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	103			126
Leased assets obtained in exchange for new operating lease liabilities	$ 97			$ 107

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	Feb. 01, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	504,198,962			512,312,434
Beginning balance	$ 11,833	$ 11,545	$ 11,836	$ 11,117	$ 11,297
Net earnings	284	834	714	938	795
Other comprehensive income (loss)	14	(95)	9	10	13
Dividends declared	$ (333)	(336)	(338)	(341)	$ (330)
Repurchase of stock (in shares)	(5,700,000)				(3,600,000)
Repurchase of stock	$ (609)	(157)	(296)	59	$ (277)
Accelerated share repurchase pending final settlement			(450)		(400)
Stock options and awards	$ (20)	$ 42	70	53	$ 19
Ending balance (in shares)	499,919,691	504,198,962			512,312,434
Ending balance	$ 11,169	$ 11,833	$ 11,545	$ 11,836	$ 11,117
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	504,200,000	506,700,000	511,300,000	512,300,000	517,800,000
Beginning balance	$ 42	$ 42	$ 43	$ 43	$ 43
Repurchase of stock (in shares)	(5,700,000)	(2,600,000)	(3,000,000)	(1,300,000)	(3,600,000)
Repurchase of stock			$ (1)		$ 0
Accelerated share repurchase pending final settlement (in shares)			(2,500,000)		(3,000,000)
Stock options and awards (in shares)	1,400,000	100,000	900,000	300,000	1,100,000
Ending balance (in shares)	499,900,000	504,200,000	506,700,000	511,300,000	512,300,000
Ending balance	$ 42	$ 42	$ 42	$ 43	$ 43
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,226	6,006	6,114	5,908	6,042
Repurchase of stock		178	0	153
Accelerated share repurchase pending final settlement			(178)		(153)
Stock options and awards	(20)	42	70	53	19
Ending balance	6,206	6,226	6,006	6,114	5,908
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,433	6,270	6,461	5,958	6,017
Net earnings	284	834	714	938	795
Dividends declared	(333)	(336)	(338)	(341)	(330)
Repurchase of stock	(609)	(335)	(295)	(94)	(277)
Accelerated share repurchase pending final settlement			(272)		(247)
Ending balance	5,775	6,433	6,270	6,461	5,958
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(868)	(773)	(782)	(792)	(805)
Other comprehensive income (loss)	14	(95)	9	10	13
Ending balance	$ (854)	$ (868)	$ (773)	$ (782)	$ (792)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		12 Months Ended
	May 02, 2020	May 04, 2019	Feb. 01, 2020
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.66	$ 0.64	$ 2.62

Accounting Policies

Accounting Policies	3 Months Ended
	May 02, 2020
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 2019 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.

Impact of Coronavirus (COVID-19

Impact of Coronavirus (COVID-19)	3 Months Ended
	May 02, 2020
Unusual or Infrequent Items, or Both [Abstract]
Impact of Coronavirus (COVID-19)	Impact of Coronavirus (COVID-19) On March 11, 2020 the World Health Organization declared the novel coronavirus disease (COVID-19) a pandemic, and on March 13, 2020 the United States declared a national emergency. States and cities have taken various measures in response to COVID-19, including mandating the closure of certain businesses and encouraging or requiring citizens to avoid large gatherings. To date all of our stores, digital channels, and distribution centers remain open. Throughout the quarter, guest shopping patterns changed significantly in reaction to the COVID-19 pandemic. Across our core merchandise categories, sales have grown significantly in Beauty and Household Essentials, Food and Beverage, Hardlines, and Home Furnishings and Décor, while declining significantly in Apparel and Accessories. Note 3 provides sales by category. In response to these changes, we have taken many actions, including accelerating purchases of certain merchandise in our core categories and slowing or canceling certain purchase orders, primarily for Apparel and Accessories. As a result of these actions, during the quarter ended May 2, 2020, we recorded $216 million of purchase order cancellation fees in Cost of Sales. From March 26, 2020, to April 26, 2020, we did not accept in-store merchandise returns and exchanges to protect our team members. We lengthened the return period for merchandise affected by this change. We continue to recognize sales net of expected returns. Our returns estimate for sales during the suspension period includes significant assumptions that, if actual results are substantially different, could result in material adjustments in future periods.

Revenues

Revenues	3 Months Ended
	May 02, 2020
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 2, May 4, Apparel and accessories (a) $ 2,619 $ 3,290 Beauty and household essentials (b) 5,911 4,971 Food and beverage (c) 4,575 3,722 Hardlines (d) 2,974 2,385 Home furnishings and décor (e) 3,264 3,001 Other 28 32 Sales 19,371 17,401 Credit card profit sharing 166 160 Other 78 66 Other revenue 244 226 Total revenue $ 19,615 $ 17,627 (a) Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as jewelry, accessories, and shoes. (b) Includes beauty and personal care, baby gear, cleaning, paper products, and pet supplies. (c) Includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service in our stores. (d) Includes electronics (including video game hardware and software), toys, entertainment, sporting goods, and luggage. (e) Includes furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. Merchandise sales – 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 2, 2020, February 1, 2020, and May 4, 2019, the accrual for estimated returns was $398 million, $117 million, and $124 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 1, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability May 2, (millions) Gift card liability (a) $ 935 $ 180 $ (335) $ 780 (a) Included in Accrued and Other Current Liabilities. (b) 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 02, 2020
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 2, February 1, May 4, Assets Short-term investments Cash and Cash Equivalents Level 1 $ 3,605 $ 1,810 $ 419 Prepaid forward contracts Other Current Assets Level 1 23 23 21 Equity securities (a) Other Current Assets Level 1 18 39 80 Interest rate swaps Other Noncurrent Assets Level 2 228 137 23 Liabilities Interest rate swaps Other Current Liabilities Level 2 — — 1 Interest rate swaps Other Noncurrent Liabilities Level 2 10 — — (a) Represents our investment in Casper Sleep Inc. common stock . Significant Financial Instruments Not Measured at Fair Value (a) (millions) May 2, 2020 February 1, 2020 May 4, 2019 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 12,474 $ 14,781 $ 9,992 $ 11,864 $ 11,243 $ 12,015 (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	3 Months Ended
	May 02, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and EquipmentWe 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 $35 million and $4 million during the three months ended May 2, 2020, and May 4, 2019, respectively. The impairment charges are recorded in Selling, General and Administrative Expenses (SG&A).

Commercial Paper and Long-Term

Commercial Paper and Long-Term Debt	3 Months Ended
	May 02, 2020
Debt Disclosure [Abstract]
Commercial Paper and Long-Term Debt	Commercial Paper and Long-Term Debt In March 2020, we issued unsecured fixed rate debt of $1.5 billion at 2.250 percent that matures in April 2025 and $1.0 billion at 2.650 percent that matures in September 2030. We obtain short-term financing from time to time under our commercial paper program. No balances were outstanding at any time during the three months ended May 2, 2020. 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, with no balance outstanding as of May 4, 2019. In April 2020, we obtained a committed $900 million 364-day unsecured revolving credit facility that expires in April 2021. This new facility is in addition to our $2.5 billion unsecured revolving credit facility that expires in October 2023. No balances were outstanding under either credit facility at any time during 2020 or 2019.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	May 02, 2020
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 4 to the Consolidated Financial Statements provides the fair value and classification of these instruments. As of May 2, 2020, and May 4, 2019, we were party to interest rate swaps with notional amounts totaling $1.5 billion and$2.5 billion, respectively. 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 2, 2020, and May 4, 2019. As of May 2, 2020, we were party to forward-starting interest rate swaps with notional amounts totaling $250 million to hedge the interest rate exposure of anticipated future debt issuances. We designated these derivative financial instruments as cash flow hedges. We assess, both at inception and on an ongoing basis, whether the derivative financial instrument is highly effective in offsetting changes in cash flows of the hedged item and whether it is probable that the hedged forecasted transaction will occur. As of May 2, 2020, a $10 million loss was recorded in Accumulated Other Comprehensive Loss and will be reclassified to Net Interest Expense when the forecasted transaction affects earnings. Effect of Hedges on Debt (millions) May 2, February 1, May 4, Current portion of long-term debt and other borrowings Carrying amount of hedged debt $ — $ — $ 999 Cumulative hedging adjustments, included in carrying amount — — (1) Long-term debt and other borrowings Carrying amount of hedged debt 1,721 1,630 1,515 Cumulative hedging adjustments, included in carrying amount 228 137 23 Effect of Hedges on Net Interest Expense Three Months Ended (millions) May 2, May 4, Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 91 $ 15 Hedged debt (91) (15) Total $ — $ —

Income Taxes

Income Taxes	3 Months Ended
	May 02, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended May 2, 2020 , our effective tax rate was 13.9 percent compared with 22.4 percent for the three months ended May 4, 2019

Share Repurchase

Share Repurchase	3 Months Ended
	May 02, 2020
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 (millions, except per share data) May 2, May 4, Number of shares purchased 5.7 3.6 Average price paid per share $ 107.58 $ 76.98 Total investment $ 609 $ 277 Note: This table excludes activity related to the first quarter 2019 ASR arrangement described below because final settlement had not occurred as of May 4, 2019. During the first quarter of 2019, we entered into an ASR arrangement to repurchase $275 to $400 million of our common stock. 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 was included as a reduction to Additional Paid-in Capital. Upon final settlement in the second quarter of 2019, we received an additional 1.2 million shares, which were retired, and $60 million for the remaining amount not settled in shares. In total, we repurchased 4.2 million shares under the ASR arrangement for a total cash investment of $340 million ($80.21 per share). In March 2020, we suspended share repurchase activity.

Pension Benefits

Pension Benefits	3 Months Ended
	May 02, 2020
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 2, May 4, Service cost benefits earned SG&A Expenses $ 26 $ 23 Interest cost on projected benefit obligation Net Other (Income) / Expense 30 37 Expected return on assets Net Other (Income) / Expense (61) (62) Amortization of losses Net Other (Income) / Expense 32 16 Amortization of prior service cost Net Other (Income) / Expense (3) (3) Total $ 24 $ 11

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	May 02, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Change in Accumulated Other Comprehensive Loss Cash Flow Currency Translation Adjustment Pension Total (millions) February 1, 2020 $ (12) $ (19) $ (837) $ (868) Other comprehensive income before reclassifications, net of tax (7) (1) — (8) Amounts reclassified from AOCI, net of tax — — 22 22 May 2, 2020 $ (19) $ (20) $ (815) $ (854)

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	May 02, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenues Three Months Ended (millions) May 2, May 4, Apparel and accessories (a) $ 2,619 $ 3,290 Beauty and household essentials (b) 5,911 4,971 Food and beverage (c) 4,575 3,722 Hardlines (d) 2,974 2,385 Home furnishings and décor (e) 3,264 3,001 Other 28 32 Sales 19,371 17,401 Credit card profit sharing 166 160 Other 78 66 Other revenue 244 226 Total revenue $ 19,615 $ 17,627 (a) Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as jewelry, accessories, and shoes. (b) Includes beauty and personal care, baby gear, cleaning, paper products, and pet supplies. (c) Includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service in our stores. (d) Includes electronics (including video game hardware and software), toys, entertainment, sporting goods, and luggage. (e) Includes furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise.
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 1, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability May 2, (millions) Gift card liability (a) $ 935 $ 180 $ (335) $ 780 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	May 02, 2020
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 2, February 1, May 4, Assets Short-term investments Cash and Cash Equivalents Level 1 $ 3,605 $ 1,810 $ 419 Prepaid forward contracts Other Current Assets Level 1 23 23 21 Equity securities (a) Other Current Assets Level 1 18 39 80 Interest rate swaps Other Noncurrent Assets Level 2 228 137 23 Liabilities Interest rate swaps Other Current Liabilities Level 2 — — 1 Interest rate swaps Other Noncurrent Liabilities Level 2 10 — — (a) Represents our investment in Casper Sleep Inc. common stock .
Significant Financial Instruments Not Measured at Fair Value	Significant Financial Instruments Not Measured at Fair Value (a) (millions) May 2, 2020 February 1, 2020 May 4, 2019 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 12,474 $ 14,781 $ 9,992 $ 11,864 $ 11,243 $ 12,015 (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)	3 Months Ended
	May 02, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives	Effect of Hedges on Debt (millions) May 2, February 1, May 4, Current portion of long-term debt and other borrowings Carrying amount of hedged debt $ — $ — $ 999 Cumulative hedging adjustments, included in carrying amount — — (1) Long-term debt and other borrowings Carrying amount of hedged debt 1,721 1,630 1,515 Cumulative hedging adjustments, included in carrying amount 228 137 23 Effect of Hedges on Net Interest Expense Three Months Ended (millions) May 2, May 4, Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 91 $ 15 Hedged debt (91) (15) Total $ — $ —

Share Repurchase (Tables)

Share Repurchase (Tables)	3 Months Ended
	May 02, 2020
Equity [Abstract]
Schedule of Share Repurchase (excluding ASR)	Share Repurchase Activity Three Months Ended (millions, except per share data) May 2, May 4, Number of shares purchased 5.7 3.6 Average price paid per share $ 107.58 $ 76.98 Total investment $ 609 $ 277 Note: This table excludes activity related to the first quarter 2019 ASR arrangement described below because final settlement had not occurred as of May 4, 2019.

Pension Benefits (Tables)

Pension Benefits (Tables)	3 Months Ended
	May 02, 2020
Retirement Benefits [Abstract]
Schedule of Pension Plan Benefits	Net Pension Benefits Expense Three Months Ended (millions) Classification May 2, May 4, Service cost benefits earned SG&A Expenses $ 26 $ 23 Interest cost on projected benefit obligation Net Other (Income) / Expense 30 37 Expected return on assets Net Other (Income) / Expense (61) (62) Amortization of losses Net Other (Income) / Expense 32 16 Amortization of prior service cost Net Other (Income) / Expense (3) (3) Total $ 24 $ 11

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	May 02, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of the Changes in Accumulated Other Comprehensive Loss	Change in Accumulated Other Comprehensive Loss Cash Flow Currency Translation Adjustment Pension Total (millions) February 1, 2020 $ (12) $ (19) $ (837) $ (868) Other comprehensive income before reclassifications, net of tax (7) (1) — (8) Amounts reclassified from AOCI, net of tax — — 22 22 May 2, 2020 $ (19) $ (20) $ (815) $ (854)

Impact of Coronavirus (COVID-_2

Impact of Coronavirus (COVID-19) (Details) $ in Millions	3 Months Ended
	May 02, 2020USD ($)
Cost of Sales | Coronavirus (COVID-19)
Unusual or Infrequent Item, or Both [Line Items]
Purchase order cancellation fees	$ 216

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 19,615	$ 17,627
Apparel and accessories
Disaggregation of Revenue [Line Items]
Revenue	2,619	3,290
Beauty and household essentials
Disaggregation of Revenue [Line Items]
Revenue	5,911	4,971
Food and beverage
Disaggregation of Revenue [Line Items]
Revenue	4,575	3,722
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	2,974	2,385
Home furnishings and decor
Disaggregation of Revenue [Line Items]
Revenue	3,264	3,001
Other
Disaggregation of Revenue [Line Items]
Revenue	28	32
Sales
Disaggregation of Revenue [Line Items]
Revenue	19,371	17,401
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	166	160
Other
Disaggregation of Revenue [Line Items]
Revenue	78	66
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 244	$ 226

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Revenue from Contract with Customer [Abstract]
Reserve	$ 398	$ 117	$ 124

Revenues - Gift Card Liability

Revenues - Gift Card Liability (Details) $ in Millions	3 Months Ended
	May 02, 2020USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 935
Gift Cards Issued During Current Period But Not Redeemed	180
Revenue Recognized From Beginning Liability	(335)
Ending balance	$ 780

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Assets
Prepaid forward contracts classified as Other Current Assets	$ 1,465	$ 1,333	$ 1,374
Interest rate swaps classified as Other Noncurrent Assets	1,367	1,358	1,287
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	1,781	1,724	1,808
Fair value measured on recurring basis | Level 1 | Casper Sleep Inc.
Assets
Equity securities classified as Other Current Assets	18	39	80
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts classified as Other Current Assets	23	23	21
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	3,605	1,810	419
Fair value measured on recurring basis | Level 2 | Interest rate swaps
Assets
Interest rate swaps classified as Other Noncurrent Assets	228	137	23
Liabilities
Interest rate swaps classified as Other Current Liabilities	0	0	1
Interest rate swaps classified as Other Noncurrent Liabilities	$ 10	$ 0	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 12,474	$ 9,992	$ 11,243
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 14,781	$ 11,864	$ 12,015

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Property, Plant and Equipment [Abstract]
Impairment charges	$ 35	$ 4

Commercial Paper and Long-Ter_2

Commercial Paper and Long-Term Debt (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Apr. 30, 2020	May 02, 2020	May 04, 2019	Feb. 01, 2020	Mar. 31, 2020
Commercial Paper
Debt Instrument [Line Items]
Maximum amount outstanding during period			$ 744,000,000
Average daily amount outstanding		$ 0	$ 140,000,000
Weighted average interest rate			2.40%
Amount outstanding			$ 0
Unsecured Fixed Rate 2.250 Percent Debt, Maturing 2025 | Unsecured Debt
Debt Instrument [Line Items]
Face amount					$ 1,500,000,000
Interest rate					2.25%
Unsecured Fixed Rate 2.650 Percent Debt, Maturing 2030 | Unsecured Debt
Debt Instrument [Line Items]
Face amount					$ 1,000,000,000
Interest rate					2.65%
Credit Facility Expiring April 2021 | Revolving Credit Facility
Debt Instrument [Line Items]
Term of debt	364 days
Line of credit facility, borrowing capacity	$ 900,000,000
Line of credit facility, outstanding balance		0		$ 0
Credit Facility Expiring 2023 | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity		2,500,000,000
Line of credit facility, outstanding balance		$ 0		$ 0

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - USD ($)	3 Months Ended
	May 02, 2020	May 04, 2019
Interest Rate Swaps
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 1,500,000,000	$ 2,500,000,000
Forward-Starting Interest Rate Swap
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	250,000,000
Loss to be reclassified	$ 10,000,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Effect of Hedges on Debt (Details) - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Current portion of long-term debt and other borrowings
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	$ 0	$ 0	$ 999
Cumulative hedging adjustments, included in carrying amount	0	0	(1)
Long-term debt and other borrowings
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	1,721	1,630	1,515
Cumulative hedging adjustments, included in carrying amount	$ 228	$ 137	$ 23

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate swap designated as fair value hedges	$ 91	$ 15
Hedged debt	(91)	(15)
Total	$ 0	$ 0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details)	3 Months Ended
	May 02, 2020	May 04, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	13.90%	22.40%

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 02, 2020	Feb. 01, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019
Equity [Abstract]
Number of shares purchased (in shares)	5.7				3.6
Average price paid per share (in dollars per share)	$ 107.58				$ 76.98
Total investment	$ 609	$ 157	$ 296	$ (59)	$ 277

Share Repurchase - Narrative (D

Share Repurchase - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended					6 Months Ended
	May 02, 2020	Feb. 01, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019	Aug. 03, 2019
Equity, Class of Treasury Stock [Line Items]
Number of shares purchased (in shares)	5.7				3.6
Stock repurchased and retired	$ 609	$ 157	$ 296	$ (59)	$ 277
Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Authorized shares for accelerated stock repurchase, low end					275
Authorized shares for accelerated stock repurchase, high end					400
Settlement (payment) of purchase agreement				$ 60	$ 400	$ 60
Number of shares purchased (in shares)				1.2	3
Shares receivable					$ 153
Stock repurchased (in shares)						4.2
Prepaid repurchase amount						$ 340
Price paid per share (in dollars per share)						$ 80.21
Retained Earnings
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired	$ 609	$ 335	$ 295	$ 94	277
Retained Earnings | Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired					$ 247

Pension Benefits (Details)

Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Net Pension Benefits Expense
Service cost benefits earned	$ 26	$ 23
Interest cost on projected benefit obligation	30	37
Expected return on assets	(61)	(62)
Amortization of losses	32	16
Amortization of prior service cost	(3)	(3)
Total	$ 24	$ 11

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Millions	3 Months Ended
	May 02, 2020USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 11,833
Other comprehensive income before reclassifications, net of tax	(8)
Amounts reclassified from AOCI, net of tax	22
Ending balance	11,169
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(12)
Other comprehensive income before reclassifications, net of tax	(7)
Amounts reclassified from AOCI, net of tax	0
Ending balance	(19)
Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(19)
Other comprehensive income before reclassifications, net of tax	(1)
Amounts reclassified from AOCI, net of tax	0
Ending balance	(20)
Pension
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(837)
Other comprehensive income before reclassifications, net of tax	0
Amounts reclassified from AOCI, net of tax	22
Ending balance	(815)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(868)
Ending balance	$ (854)