Target (TGT) 10-Q 25 Nov 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Oct. 31, 2020	Nov. 20, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 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		500,773,141
Entity Central Index Key	0000027419
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Revenue	$ 22,632	$ 18,665	$ 65,222	$ 54,713
Selling, general and administrative expenses	4,647	4,153	13,167	11,728
Depreciation and amortization (exclusive of depreciation included in cost of sales)	541	575	1,660	1,717
Operating income	1,935	1,002	4,703	3,460
Net interest expense	632	113	871	359
Net other (income) / expense	5	(12)	16	(38)
Earnings from continuing operations before income taxes	1,298	901	3,816	3,139
Provision for income taxes	284	195	828	703
Net earnings from continuing operations	1,014	706	2,988	2,436
Discontinued operations, net of tax	0	8	0	11
Net earnings	$ 1,014	$ 714	$ 2,988	$ 2,447
Basic earnings per share
Continuing operations (in dollars per share)	$ 2.02	$ 1.38	$ 5.97	$ 4.75
Discontinued operations (in dollars per share)	0	0.02	0	0.02
Net earnings per share (in dollars per share)	2.02	1.40	5.97	4.77
Diluted earnings per share
Continuing operations (in dollars per share)	2.01	1.37	5.91	4.71
Discontinued operations (in dollars per share)	0	0.02	0	0.02
Net earnings per share (in dollars per share)	$ 2.01	$ 1.39	$ 5.91	$ 4.74
Weighted average common shares outstanding
Basic (in shares)	500.6	509.7	500.6	512.5
Diluted (in shares)	505.4	514.8	505.2	516.8
Antidilutive shares (in shares)	0	0	0	0
Sales
Revenue	$ 22,336	$ 18,414	$ 64,403	$ 53,997
Cost of sales	15,509	12,935	45,692	37,808
Other revenue
Revenue	$ 296	$ 251	$ 819	$ 716

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 1,014	$ 714	$ 2,988	$ 2,447
Other comprehensive income
Pension, net of tax	22	10	66	30
Currency translation adjustment and cash flow hedges, net of tax	14	(1)	5	2
Other comprehensive income	36	9	71	32
Comprehensive income	$ 1,050	$ 723	$ 3,059	$ 2,479

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Oct. 31, 2020	Feb. 01, 2020	Nov. 02, 2019
Assets
Cash and cash equivalents	$ 5,996	$ 2,577	$ 969
Inventory	12,712	8,992	11,396
Other current assets	1,601	1,333	1,440
Total current assets	20,309	12,902	13,805
Property and equipment
Land	6,063	6,036	6,040
Buildings and improvements	31,398	30,603	30,467
Fixtures and equipment	5,843	6,083	6,032
Computer hardware and software	2,706	2,692	2,636
Construction-in-progress	518	533	298
Accumulated depreciation	(19,755)	(19,664)	(19,089)
Property and equipment, net	26,773	26,283	26,384
Operating lease assets	2,208	2,236	2,151
Other noncurrent assets	1,371	1,358	1,401
Total assets	50,661	42,779	43,741
Liabilities and shareholders’ investment
Accounts payable	14,203	9,920	11,258
Accrued and other current liabilities	5,023	4,406	4,191
Current portion of long-term debt and other borrowings	131	161	1,159
Total current liabilities	19,357	14,487	16,608
Long-term debt and other borrowings	12,490	11,338	10,513
Noncurrent operating lease liabilities	2,196	2,275	2,208
Deferred income taxes	1,171	1,122	1,215
Other noncurrent liabilities	2,128	1,724	1,652
Total noncurrent liabilities	17,985	16,459	15,588
Shareholders’ investment
Common stock	42	42	42
Additional paid-in capital	6,285	6,226	6,006
Retained earnings	7,789	6,433	6,270
Accumulated other comprehensive loss	(797)	(868)	(773)
Total shareholders’ investment	13,319	11,833	11,545
Total liabilities and shareholders’ investment	$ 50,661	$ 42,779	$ 43,741

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Oct. 31, 2020	Feb. 01, 2020	Nov. 02, 2019
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	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 (in shares)	500,754,729	504,198,962	506,677,740
Common stock, shares outstanding (in shares)	500,754,729	504,198,962	506,677,740
Preferred stock, shares authorized (in shares)	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 (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Operating activities
Net earnings	$ 2,988	$ 2,447
Earnings from discontinued operations, net of tax	0	11
Net earnings from continuing operations	2,988	2,436
Adjustments to reconcile net earnings to cash provided by operations
Depreciation and amortization	1,848	1,905
Share-based compensation expense	161	116
Deferred income taxes	26	235
Loss on debt extinguishment	512	0
Noncash losses / (gains) and other, net	124	6
Changes in operating accounts
Inventory	(3,720)	(1,899)
Other assets	(174)	(10)
Accounts payable	4,287	1,473
Accrued and other liabilities	992	(121)
Cash provided by operating activities—continuing operations	7,044	4,141
Cash provided by operating activities—discontinued operations	0	18
Cash provided by operations	7,044	4,159
Investing activities
Expenditures for property and equipment	(2,009)	(2,403)
Proceeds from disposal of property and equipment	27	29
Other investments	(3)	14
Cash required for investing activities	(1,985)	(2,360)
Financing activities
Additions to long-term debt	2,480	994
Reductions of long-term debt	(2,395)	(1,041)
Dividends paid	(1,002)	(995)
Repurchase of stock	(741)	(959)
Accelerated share repurchase pending final settlement	0	(450)
Stock option exercises	18	65
Cash required for financing activities	(1,640)	(2,386)
Net increase in cash and cash equivalents	3,419	(587)
Cash and cash equivalents at beginning of period	2,577	1,556
Cash and cash equivalents at end of period	5,996	969
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	344	301
Leased assets obtained in exchange for new operating lease liabilities	$ 186	$ 334

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended							9 Months Ended
	Oct. 31, 2020	Aug. 01, 2020	May 02, 2020	Feb. 01, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019	Oct. 31, 2020	Nov. 02, 2019
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)			504,198,962	506,677,740				504,198,962
Beginning balance	$ 12,578	$ 11,169	$ 11,833	$ 11,545	$ 11,836	$ 11,117	$ 11,297	$ 11,833	$ 11,297
Net earnings	1,014	1,690	284	834	714	938	795	2,988	2,447
Other comprehensive income (loss)	36	21	14	(95)	9	10	13	$ 71	$ 32
Dividends declared	$ (346)	(344)	(333)	(336)	$ (338)	(341)	(330)
Repurchase of stock (in shares)	0				(3,000,000)			(5,700,000)	(10,800,000)
Repurchase of stock			(609)	(157)	$ (296)	59	(277)
Accelerated share repurchase pending final settlement					(450)		(400)
Stock options and awards	$ 37	42	(20)	$ 42	$ 70	53	19
Ending balance (in shares)	500,754,729			504,198,962	506,677,740			500,754,729	506,677,740
Ending balance	$ 13,319	$ 12,578	$ 11,169	$ 11,833	$ 11,545	$ 11,836	$ 11,117	$ 13,319	$ 11,545
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	500,300,000	499,900,000	504,200,000	506,700,000	511,300,000	512,300,000	517,800,000	504,200,000	517,800,000
Beginning balance	$ 42	$ 42	$ 42	$ 42	$ 43	$ 43	$ 43	$ 42	$ 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)
Accelerated share repurchase pending final settlement (in shares)					(2,500,000)		(3,000,000)
Stock options and awards (in shares)	500,000	400,000	1,400,000	100,000	900,000	300,000	1,100,000
Ending balance (in shares)	500,800,000	500,300,000	499,900,000	504,200,000	506,700,000	511,300,000	512,300,000	500,800,000	506,700,000
Ending balance	$ 42	$ 42	$ 42	$ 42	$ 42	$ 43	$ 43	$ 42	$ 42
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,248	6,206	6,226	6,006	6,114	5,908	6,042	6,226	6,042
Repurchase of stock				178		153
Accelerated share repurchase pending final settlement					(178)		(153)
Stock options and awards	37	42	(20)	42	70	53	19
Ending balance	6,285	6,248	6,206	6,226	6,006	6,114	5,908	6,285	6,006
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	7,121	5,775	6,433	6,270	6,461	5,958	6,017	6,433	6,017
Net earnings	1,014	1,690	284	834	714	938	795
Dividends declared	(346)	(344)	(333)	(336)	(338)	(341)	(330)
Repurchase of stock			(609)	(335)	(295)	(94)	(277)
Accelerated share repurchase pending final settlement					(272)		(247)
Ending balance	7,789	7,121	5,775	6,433	6,270	6,461	5,958	7,789	6,270
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(833)	(854)	(868)	(773)	(782)	(792)	(805)	(868)	(805)
Other comprehensive income (loss)	36	21	14	(95)	9	10	13
Ending balance	$ (797)	$ (833)	$ (854)	$ (868)	$ (773)	$ (782)	$ (792)	$ (797)	$ (773)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		12 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Feb. 01, 2020
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.68	$ 0.66	$ 2.62

Accounting Policies

Accounting Policies	9 Months Ended
	Oct. 31, 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.

Coronavirus (COVID-19)

Coronavirus (COVID-19)	9 Months Ended
	Oct. 31, 2020
Unusual or Infrequent Items, or Both [Abstract]
Coronavirus (COVID-19)	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, virtually all of our stores, digital channels, and distribution centers have remained open. Throughout the nine months ended October 31, 2020, guest shopping patterns changed significantly and unpredictably in reaction to the COVID-19 pandemic. Four of our five core merchandise categories have experienced significant sales growth throughout the year; however, sales of Apparel and Accessories declined significantly in the first quarter before rebounding in the second and third quarters. Note 3 pr ovides 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 first quarter of 2020, we recorded $216 million of purchase order cancellation fees in Cost of Sales.

Revenues

Revenues	9 Months Ended
	Oct. 31, 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 Nine Months Ended (millions) October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 Apparel and accessories (a) $ 3,927 $ 3,564 $ 10,630 $ 10,510 Beauty and household essentials (b) 6,103 5,125 18,172 15,172 Food and beverage (c) 4,397 3,717 13,158 10,899 Hardlines (d) 3,377 2,460 9,959 7,348 Home furnishings and décor (e) 4,506 3,527 12,395 9,985 Other 26 21 89 83 Sales 22,336 18,414 64,403 53,997 Credit card profit sharing 164 177 488 505 Other 132 74 331 211 Other revenue 296 251 819 716 Total revenue $ 22,632 $ 18,665 $ 65,222 $ 54,713 (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 October 31, 2020, February 1, 2020, and November 2, 2019, the accrual for estimated returns was $182 million, $117 million, and $137 million, respectively. 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, 2020 Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability October 31, 2020 (millions) Gift card liability (a) $ 935 $ 372 $ (549) $ 758 (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	9 Months Ended
	Oct. 31, 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 October 31, 2020 February 1, 2020 November 2, 2019 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 5,089 $ 1,810 $ 163 Prepaid forward contracts Other Current Assets Level 1 32 23 24 Equity securities (a) Other Current Assets Level 1 19 39 80 Interest rate swaps Other Noncurrent Assets Level 2 205 137 122 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 3 — — (a) Represents our investment in Casper Sleep Inc. common stock . Significant Financial Instruments Not Measured at Fair Value (a) (millions) October 31, 2020 February 1, 2020 November 2, 2019 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,641 $ 12,787 $ 9,992 $ 11,864 $ 10,246 $ 11,870 (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
	Oct. 31, 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 $2 million and $62 million during the three and nine months ended October 31, 2020, respectively. We recognized impairment charges of $7 million and $21 million during the three and nine months ended November 2, 2019, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A).

Commercial Paper and Long-Term

Commercial Paper and Long-Term Debt	9 Months Ended
	Oct. 31, 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. In October 2020, we repurchased $1.77 billion of debt before its maturity at a market value of $2.25 billion. We recognized a loss on early retirement of $512 million, which was recorded in Net Interest Expense. We obtain short-term financing from time to time under our commercial paper program. No balances were outstanding at any time during the nine months ended October 31, 2020. 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, with no balance outstanding as of November 2, 2019. In April 2020, we obtained a committed $900 million 364-day unsecured revolving credit facility. This new facility was in addition to our $2.5 billion unsecured revolving credit facility that expires in October 2023. We terminated the 364-day facility in November 2020. No balances were outstanding under either credit facility at any time during 2020 or 2019.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Oct. 31, 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 October 31, 2020, and November 2, 2019, we were party to interest rate swaps with notional amounts totaling $1.5 billion. 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 October 31, 2020, and November 2, 2019. As of October 31, 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 October 31, 2020, a $1 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) October 31, 2020 February 1, 2020 November 2, 2019 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,696 $ 1,630 $ 1,614 Cumulative hedging adjustments, included in carrying amount 203 137 122 Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ (36) $ 14 $ 66 $ 115 Hedged debt 36 (14) (66) (115) Total $ — $ — $ — $ —

Share Repurchase

Share Repurchase	9 Months Ended
	Oct. 31, 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 Nine Months Ended (millions, except per share data) October 31, 2020 November 2, 2019 (a) October 31, 2020 November 2, 2019 (a) Number of shares purchased — 3.0 5.7 10.8 Average price paid per share $ — $ 99.25 $ 107.58 $ 84.28 Total investment $ — $ 294 $ 609 $ 912 (a) This table excludes activity related to the ASR arrangement described below because final settlement had not occurred as of November 2, 2019. 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 was included as a reduction to Additional Paid-in Capital. Upon final settlement in the fourth quarter of 2019, we received an additional 0.2 million shares, which were retired, and $127 million for the remaining amount not settled in shares. In total, we repurchased 2.7 million shares under the ASR arrangement for a total cash investment of $323 million ($117.64 per share).

Pension Benefits

Pension Benefits	9 Months Ended
	Oct. 31, 2020
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 October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 Service cost benefits earned SG&A Expenses $ 25 $ 23 $ 76 $ 69 Interest cost on projected benefit obligation Net Other (Income) / Expense 30 37 89 111 Expected return on assets Net Other (Income) / Expense (61) (62) (182) (186) Amortization of losses Net Other (Income) / Expense 32 16 96 47 Amortization of prior service cost Net Other (Income) / Expense (3) (3) (9) (8) Settlement charges Net Other (Income) / Expense 1 — 1 — Total $ 24 $ 11 $ 71 $ 33

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Oct. 31, 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 loss before reclassifications, net of tax (1) — — (1) Amounts reclassified from AOCI, net of tax 6 — 66 72 October 31, 2020 $ (7) $ (19) $ (771) $ (797)

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Oct. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenues Three Months Ended Nine Months Ended (millions) October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 Apparel and accessories (a) $ 3,927 $ 3,564 $ 10,630 $ 10,510 Beauty and household essentials (b) 6,103 5,125 18,172 15,172 Food and beverage (c) 4,397 3,717 13,158 10,899 Hardlines (d) 3,377 2,460 9,959 7,348 Home furnishings and décor (e) 4,506 3,527 12,395 9,985 Other 26 21 89 83 Sales 22,336 18,414 64,403 53,997 Credit card profit sharing 164 177 488 505 Other 132 74 331 211 Other revenue 296 251 819 716 Total revenue $ 22,632 $ 18,665 $ 65,222 $ 54,713 (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, 2020 Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability October 31, 2020 (millions) Gift card liability (a) $ 935 $ 372 $ (549) $ 758 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 31, 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 October 31, 2020 February 1, 2020 November 2, 2019 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 5,089 $ 1,810 $ 163 Prepaid forward contracts Other Current Assets Level 1 32 23 24 Equity securities (a) Other Current Assets Level 1 19 39 80 Interest rate swaps Other Noncurrent Assets Level 2 205 137 122 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 3 — — (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) October 31, 2020 February 1, 2020 November 2, 2019 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,641 $ 12,787 $ 9,992 $ 11,864 $ 10,246 $ 11,870 (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
	Oct. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives	Effect of Hedges on Debt (millions) October 31, 2020 February 1, 2020 November 2, 2019 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,696 $ 1,630 $ 1,614 Cumulative hedging adjustments, included in carrying amount 203 137 122 Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ (36) $ 14 $ 66 $ 115 Hedged debt 36 (14) (66) (115) Total $ — $ — $ — $ —

Share Repurchase (Tables)

Share Repurchase (Tables)	9 Months Ended
	Oct. 31, 2020
Equity [Abstract]
Schedule of Share Repurchase (excluding ASR)	Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) October 31, 2020 November 2, 2019 (a) October 31, 2020 November 2, 2019 (a) Number of shares purchased — 3.0 5.7 10.8 Average price paid per share $ — $ 99.25 $ 107.58 $ 84.28 Total investment $ — $ 294 $ 609 $ 912 (a) This table excludes activity related to the ASR arrangement described below because final settlement had not occurred as of November 2, 2019.

Pension Benefits (Tables)

Pension Benefits (Tables)	9 Months Ended
	Oct. 31, 2020
Retirement Benefits [Abstract]
Schedule of Pension Plan Benefits	Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) Classification October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 Service cost benefits earned SG&A Expenses $ 25 $ 23 $ 76 $ 69 Interest cost on projected benefit obligation Net Other (Income) / Expense 30 37 89 111 Expected return on assets Net Other (Income) / Expense (61) (62) (182) (186) Amortization of losses Net Other (Income) / Expense 32 16 96 47 Amortization of prior service cost Net Other (Income) / Expense (3) (3) (9) (8) Settlement charges Net Other (Income) / Expense 1 — 1 — Total $ 24 $ 11 $ 71 $ 33

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Oct. 31, 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 loss before reclassifications, net of tax (1) — — (1) Amounts reclassified from AOCI, net of tax 6 — 66 72 October 31, 2020 $ (7) $ (19) $ (771) $ (797)

Coronavirus (COVID-19) (Details

Coronavirus (COVID-19) (Details) $ in Millions	3 Months Ended	9 Months Ended
	May 02, 2020USD ($)	Oct. 31, 2020merchandiseCategory
Unusual or Infrequent Item, or Both [Line Items]
Number of core merchandise categories (in merchandise categories)		5
Coronavirus (COVID-19)
Unusual or Infrequent Item, or Both [Line Items]
Number of merchandise categories with significant sales growth		4
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		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 22,632	$ 18,665	$ 65,222	$ 54,713
Apparel and accessories
Disaggregation of Revenue [Line Items]
Revenue	3,927	3,564	10,630	10,510
Beauty and household essentials
Disaggregation of Revenue [Line Items]
Revenue	6,103	5,125	18,172	15,172
Food and beverage
Disaggregation of Revenue [Line Items]
Revenue	4,397	3,717	13,158	10,899
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	3,377	2,460	9,959	7,348
Home furnishings and decor
Disaggregation of Revenue [Line Items]
Revenue	4,506	3,527	12,395	9,985
Other
Disaggregation of Revenue [Line Items]
Revenue	26	21	89	83
Sales
Disaggregation of Revenue [Line Items]
Revenue	22,336	18,414	64,403	53,997
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	164	177	488	505
Other
Disaggregation of Revenue [Line Items]
Revenue	132	74	331	211
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 296	$ 251	$ 819	$ 716

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	Oct. 31, 2020	Feb. 01, 2020	Nov. 02, 2019
Revenue from Contract with Customer [Abstract]
Reserve	$ 182	$ 117	$ 137

Revenues - Gift Card Liability

Revenues - Gift Card Liability (Details) $ in Millions	9 Months Ended
	Oct. 31, 2020USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 935
Gift Cards Issued During Current Period But Not Redeemed	372
Revenue Recognized From Beginning Liability	(549)
Ending balance	$ 758

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Oct. 31, 2020	Feb. 01, 2020	Nov. 02, 2019
Assets
Prepaid forward contracts classified as Other Current Assets	$ 1,601	$ 1,333	$ 1,440
Interest rate swaps classified as Other Noncurrent Assets	1,371	1,358	1,401
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	2,128	1,724	1,652
Fair value measured on recurring basis | Level 1 | Casper Sleep Inc.
Assets
Equity securities classified as Other Current Assets	19	39	80
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts classified as Other Current Assets	32	23	24
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	5,089	1,810	163
Fair value measured on recurring basis | Level 2 | Interest rate swaps
Assets
Interest rate swaps classified as Other Noncurrent Assets	205	137	122
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	$ 3	$ 0	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	Oct. 31, 2020	Feb. 01, 2020	Nov. 02, 2019
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 10,641	$ 9,992	$ 10,246
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 12,787	$ 11,864	$ 11,870

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Property, Plant and Equipment [Abstract]
Impairment charges	$ 2	$ 7	$ 62	$ 21

Commercial Paper and Long-Ter_2

Commercial Paper and Long-Term Debt (Details) - USD ($)	1 Months Ended			9 Months Ended		12 Months Ended
	Nov. 25, 2020	Oct. 31, 2020	Apr. 30, 2020	Oct. 31, 2020	Nov. 02, 2019	Feb. 01, 2020	Mar. 31, 2020
Debt Instrument [Line Items]
Loss on debt extinguishment				$ (512,000,000)	$ 0
Commercial Paper
Debt Instrument [Line Items]
Average daily amount outstanding				0	55,000,000
Maximum amount outstanding during period					$ 744,000,000
Weighted average interest rate					2.40%
Amount outstanding					$ 0
Unsecured Debt
Debt Instrument [Line Items]
Repurchased face amount		$ 1,770,000,000		1,770,000,000
Market value of debt repurchased		2,250,000,000		2,250,000,000
Loss on debt extinguishment		(512,000,000)
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]
Line of credit facility, borrowing capacity			$ 900,000,000
Term of debt			364 days
Line of credit facility, outstanding balance				0
Credit Facility Expiring April 2021 | Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Term of debt	364 days
Credit Facility Expiring October 2023 | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity		$ 2,500,000,000		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 ($)	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Interest Rate Swaps
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 1,500,000,000	$ 1,500,000,000
Forward-Starting Interest Rate Swap
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	250,000,000
Loss to be reclassified	$ 1,000,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Effect of Hedges on Debt (Details) - Long-term debt and other borrowings - USD ($) $ in Millions	Oct. 31, 2020	Feb. 01, 2020	Nov. 02, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	$ 1,696	$ 1,630	$ 1,614
Cumulative hedging adjustments, included in carrying amount	$ 203	$ 137	$ 122

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate swap designated as fair value hedges	$ (36)	$ 14	$ 66	$ 115
Hedged debt	36	(14)	(66)	(115)
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
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Equity [Abstract]
Number of shares purchased (in shares)	0	3	5.7	10.8
Average price paid per share (in dollars per share)	$ 0	$ 99.25	$ 107.58	$ 84.28
Total cash investment	$ 0	$ 294	$ 609	$ 912

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
	Oct. 31, 2020	May 02, 2020	Feb. 01, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019	Feb. 01, 2020	Oct. 31, 2020	Nov. 02, 2019
Equity, Class of Treasury Stock [Line Items]
Number of shares purchased (in shares)	0			3				5.7	10.8
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				300					$ 300
Authorized shares for accelerated stock repurchase, high end				450					450
Settlement (payment) of purchase agreement			$ 127	$ (450)			$ 127		(450)
Number of shares purchased (in shares)			0.2	2.5
Shares receivable				$ 178					$ 178
Stock repurchased (in shares)							2.7
Prepaid repurchase amount			$ 323
Price paid per share (in dollars per share)							$ 117.64
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				$ 272

Pension Benefits (Details)

Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Net Pension Benefits Expense
Service cost benefits earned	$ 25	$ 23	$ 76	$ 69
Interest cost on projected benefit obligation	30	37	89	111
Expected return on assets	(61)	(62)	(182)	(186)
Amortization of losses	32	16	96	47
Amortization of prior service cost	(3)	(3)	(9)	(8)
Settlement charges	1	0	1	0
Total	$ 24	$ 11	$ 71	$ 33

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Millions	9 Months Ended
	Oct. 31, 2020USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 11,833
Other comprehensive loss before reclassifications, net of tax	(1)
Amounts reclassified from AOCI, net of tax	72
Ending balance	13,319
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(12)
Other comprehensive loss before reclassifications, net of tax	(1)
Amounts reclassified from AOCI, net of tax	6
Ending balance	(7)
Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(19)
Other comprehensive loss before reclassifications, net of tax	0
Amounts reclassified from AOCI, net of tax	0
Ending balance	(19)
Pension
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(837)
Other comprehensive loss before reclassifications, net of tax	0
Amounts reclassified from AOCI, net of tax	66
Ending balance	(771)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(868)
Ending balance	$ (797)