Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 04, 2021 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 30, 2021 | ||
Current Fiscal Year End Date | --01-30 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 62,803,635,300 | ||
Entity Common Stock, Shares Outstanding | 498,616,180 | ||
Entity Central Index Key | 0000027419 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference | Portions of Target's Proxy Statement for the Annual Meeting of Shareholders to be held on June 9, 2021, are incorporated into Part III. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Total revenue | $ 93,561 | $ 78,112 | $ 75,356 |
Cost of sales | 66,177 | 54,864 | 53,299 |
Selling, general and administrative expenses | 18,615 | 16,233 | 15,723 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 2,230 | 2,357 | 2,224 |
Operating income | 6,539 | 4,658 | 4,110 |
Net interest expense | 977 | 477 | 461 |
Net other (income) / expense | 16 | (9) | (27) |
Earnings from continuing operations before income taxes | 5,546 | 4,190 | 3,676 |
Provision for income taxes | 1,178 | 921 | 746 |
Net earnings from continuing operations | 4,368 | 3,269 | 2,930 |
Discontinued operations, net of tax | 0 | 12 | 7 |
Net earnings | $ 4,368 | $ 3,281 | $ 2,937 |
Basic earnings per share | |||
Continuing operations (in dollars per share) | $ 8.72 | $ 6.39 | $ 5.54 |
Discontinued operations (in dollars per share) | 0 | 0.02 | 0.01 |
Net earnings per share (in dollars per share) | 8.72 | 6.42 | 5.55 |
Diluted earnings per share | |||
Continuing operations (in dollars per share) | 8.64 | 6.34 | 5.50 |
Discontinued operations (in dollars per share) | 0 | 0.02 | 0.01 |
Net earnings per share (in dollars per share) | $ 8.64 | $ 6.36 | $ 5.51 |
Weighted average common shares outstanding | |||
Basic (in shares) | 500.6 | 510.9 | 528.6 |
Diluted (in shares) | 505.4 | 515.6 | 533.2 |
Antidilutive shares (in shares) | 0 | 0 | 0 |
Sales | |||
Total revenue | $ 92,400 | $ 77,130 | $ 74,433 |
Other revenue | |||
Total revenue | $ 1,161 | $ 982 | $ 923 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 4,368 | $ 3,281 | $ 2,937 |
Other comprehensive income / (loss), net of tax | |||
Pension benefit liabilities | 102 | (65) | (52) |
Currency translation adjustment and cash flow hedges | 10 | 2 | (6) |
Other comprehensive income / (loss) | 112 | (63) | (58) |
Comprehensive income | $ 4,480 | $ 3,218 | $ 2,879 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Assets | ||
Cash and cash equivalents | $ 8,511 | $ 2,577 |
Inventory | 10,653 | 8,992 |
Other current assets | 1,592 | 1,333 |
Total current assets | 20,756 | 12,902 |
Property and equipment | ||
Land | 6,141 | 6,036 |
Buildings and improvements | 31,557 | 30,603 |
Fixtures and equipment | 5,914 | 6,083 |
Computer hardware and software | 2,765 | 2,692 |
Construction-in-progress | 780 | 533 |
Accumulated depreciation | (20,278) | (19,664) |
Property and equipment, net | 26,879 | 26,283 |
Operating lease assets | 2,227 | 2,236 |
Other noncurrent assets | 1,386 | 1,358 |
Total assets | 51,248 | 42,779 |
Liabilities and shareholders' investment | ||
Accounts payable | 12,859 | 9,920 |
Accrued and other current liabilities | 6,122 | 4,406 |
Current portion of long-term debt and other borrowings | 1,144 | 161 |
Total current liabilities | 20,125 | 14,487 |
Long-term debt and other borrowings | 11,536 | 11,338 |
Noncurrent operating lease liabilities | 2,218 | 2,275 |
Deferred income taxes | 990 | 1,122 |
Other noncurrent liabilities | 1,939 | 1,724 |
Total noncurrent liabilities | 16,683 | 16,459 |
Shareholders' investment | ||
Common stock | 42 | 42 |
Additional paid-in capital | 6,329 | 6,226 |
Retained earnings | 8,825 | 6,433 |
Accumulated other comprehensive loss | (756) | (868) |
Total shareholders' investment | 14,440 | 11,833 |
Total liabilities and shareholders' investment | $ 51,248 | $ 42,779 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Jan. 30, 2021 | Feb. 01, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, shares authorized (in shares) | 6,000,000,000 | 6,000,000,000 |
Common Stock, par value (in dollars per share) | $ 0.0833 | $ 0.0833 |
Common Stock, shares issued (in shares) | 500,877,129 | 504,198,962 |
Common Stock, shares outstanding (in shares) | 500,877,129 | 504,198,962 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Operating activities | |||
Net earnings | $ 4,368 | $ 3,281 | $ 2,937 |
Earnings from discontinued operations, net of tax | 0 | 12 | 7 |
Net earnings from continuing operations | 4,368 | 3,269 | 2,930 |
Adjustments to reconcile net earnings to cash provided by operations: | |||
Depreciation and amortization | 2,485 | 2,604 | 2,474 |
Share-based compensation expense | 200 | 147 | 132 |
Deferred income taxes | (184) | 178 | 322 |
Loss on debt extinguishment | 512 | 10 | 0 |
Noncash losses / (gains) and other, net | 86 | 29 | 95 |
Changes in operating accounts: | |||
Inventory | (1,661) | 505 | (900) |
Other assets | (137) | 18 | (299) |
Accounts payable | 2,925 | 140 | 1,127 |
Accrued and other liabilities | 1,931 | 199 | 89 |
Cash provided by operating activities—continuing operations | 10,525 | 7,099 | 5,970 |
Cash provided by operating activities—discontinued operations | 0 | 18 | 3 |
Cash provided by operations | 10,525 | 7,117 | 5,973 |
Investing activities | |||
Expenditures for property and equipment | (2,649) | (3,027) | (3,516) |
Proceeds from disposal of property and equipment | 42 | 63 | 85 |
Other investments | 16 | 20 | 15 |
Cash required for investing activities | (2,591) | (2,944) | (3,416) |
Financing activities | |||
Additions to long-term debt | 2,480 | 1,739 | 0 |
Reductions of long-term debt | (2,415) | (2,069) | (281) |
Dividends paid | (1,343) | (1,330) | (1,335) |
Repurchase of stock | (745) | (1,565) | (2,124) |
Stock option exercises | 23 | 73 | 96 |
Cash required for financing activities | (2,000) | (3,152) | (3,644) |
Net increase / (decrease) in cash and cash equivalents | 5,934 | 1,021 | (1,087) |
Cash and cash equivalents at beginning of period | 2,577 | 1,556 | 2,643 |
Cash and cash equivalents at end of period | 8,511 | 2,577 | 1,556 |
Supplemental information | |||
Interest paid, net of capitalized interest | 939 | 492 | 476 |
Income taxes paid | 1,031 | 696 | 373 |
Leased assets obtained in exchange for new finance lease liabilities | 428 | 379 | 130 |
Leased assets obtained in exchange for new operating lease liabilities | $ 262 | $ 464 | $ 246 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance (in shares) | 504,198,962 | ||
Beginning balance | $ 11,833 | $ 11,297 | $ 11,651 |
Net earnings | 4,368 | 3,281 | 2,937 |
Other comprehensive loss | 112 | (63) | (58) |
Dividends declared | $ (1,367) | $ (1,345) | $ (1,347) |
Repurchase of stock (in shares) | (5,700,000) | (16,000,000) | (27,200,000) |
Repurchase of stock | $ (609) | $ (1,521) | $ (2,070) |
Stock options and awards | $ 103 | $ 184 | 184 |
Ending balance (in shares) | 500,877,129 | 504,198,962 | |
Ending balance | $ 14,440 | $ 11,833 | $ 11,297 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance (in shares) | 504,200,000 | 517,800,000 | 541,700,000 |
Beginning balance | $ 42 | $ 43 | $ 45 |
Repurchase of stock (in shares) | (5,700,000) | (16,000,000) | (27,200,000) |
Repurchase of stock | $ 0 | $ (1) | $ (2) |
Stock options and awards (in shares) | 2,400,000 | 2,400,000 | 3,300,000 |
Stock options and awards | $ 0 | $ 0 | $ 0 |
Ending balance (in shares) | 500,900,000 | 504,200,000 | 517,800,000 |
Ending balance | $ 42 | $ 42 | $ 43 |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 6,226 | 6,042 | 5,858 |
Stock options and awards | 103 | 184 | 184 |
Ending balance | 6,329 | 6,226 | 6,042 |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 6,433 | 6,017 | 6,495 |
Net earnings | 4,368 | 3,281 | 2,937 |
Dividends declared | (1,367) | (1,345) | (1,347) |
Repurchase of stock | (609) | (1,520) | (2,068) |
Ending balance | 8,825 | 6,433 | 6,017 |
Accumulated Other Comprehensive (Loss) / Income | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | (868) | (805) | (747) |
Other comprehensive loss | 112 | (63) | (58) |
Ending balance | $ (756) | $ (868) | $ (805) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 2.70 | $ 2.62 | $ 2.54 |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | Summary of Accounting Policies Organization We are a general merchandise retailer selling products to our guests through our stores and digital channels. We operate as a single segment that includes all of our continuing operations, which are designed to enable guests to purchase products seamlessly in stores or through our digital channels. Nearly all of our revenues are generated in the United States (U.S.). The vast majority of our long-lived assets are located within the U.S. Consolidation The consolidated financial statements include the balances of Target and its subsidiaries after elimination of intercompany balances and transactions. All material subsidiaries are wholly owned. We consolidate variable interest entities where it has been determined that Target is the primary beneficiary of those entities' operations. Use of estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions affecting reported amounts in the consolidated financial statements and accompanying notes. Actual results may differ significantly from those estimates. Fiscal year Our fiscal year ends on the Saturday nearest January 31. Unless otherwise stated, references to years in this report relate to fiscal years, rather than to calendar years. Fiscal 2020, 2019 and 2018 ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively, and consisted of 52 weeks. Fiscal 2021 will end January 29, 2022, and will consist of 52 weeks. Accounting policies Our accounting policies are disclosed in the applicable Notes to the Consolidated Financial Statements. Certain prior-year amounts have been reclassified to conform to the current-year presentation. |
Coronavirus (COVID-19)
Coronavirus (COVID-19) | 12 Months Ended |
Jan. 30, 2021 | |
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 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 balance of the year. 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, we recorded $226 million of purchase order cancellation fees in Cost of Sales. |
Revenues
Revenues | 12 Months Ended |
Jan. 30, 2021 | |
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 (millions) 2020 2019 2018 Apparel and accessories (a) $ 14,772 $ 14,304 $ 13,434 Beauty and household essentials (b) 24,461 20,616 19,296 Food and beverage (c) 18,135 15,039 14,585 Hardlines (d) 16,626 12,595 12,709 Home furnishings and décor (e) 18,231 14,430 14,298 Other 175 146 111 Sales 92,400 77,130 74,433 Credit card profit sharing 666 680 673 Other 495 302 250 Other revenue 1,161 982 923 Total revenue $ 93,561 $ 78,112 $ 75,356 (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. Total revenues do not include sales tax because we are a pass-through conduit for collecting and remitting sales taxes. Generally, guests may return national brand merchandise within 90 days of purchase and owned and exclusive brands within one year of purchase. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of January 30, 2021, February 1, 2020, and February 2, 2019, the liability for estimated returns was $139 million, $117 million, and $116 million, respectively. We routinely enter into arrangements with vendors whereby we do not purchase or pay for merchandise until the merchandise is ultimately sold to a guest. Under the vast majority of these arrangements, which represent less than 5 percent of consolidated sales, we record revenue and related costs gross. We concluded that we are the principal in these transactions for a number of reasons, most notably because we 1) control the overall economics of the transactions, including setting the sales price and realizing the majority of cash flows from the sale, 2) control the relationship with the customer, and 3) are responsible for fulfilling the promise to provide goods to the customer. Merchandise received under these arrangements is not included in Inventory because the purchase and sale of this inventory are virtually simultaneous. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions. Gift Card Liability Activity (millions) February 1, 2020 Gift Cards Issued During Current Period But Not Redeemed (b) Revenue January 30, 2021 Gift card liability (a) $ 935 $ 739 $ (639) $ 1,035 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage. Guests receive a 5 percent discount on nearly all purchases and receive free shipping at Target.com when they use their Target Debit Card, Target Credit Card, or Target MasterCard (RedCards). The discount is included as a sales reduction and was $1.1 billion, $962 million, and $953 million in 2020, 2019, and 2018, respectively. Target Circle program members earn 1 percent rewards on nearly all non-RedCard purchases. As of January 30, 2021, deferred revenue of $72 million related to this loyalty program was included in Accrued and Other Current Liabilities. Amounts related to this program were insignificant at February 1, 2020. Credit card profit sharing – We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other – Includes advertising, Shipt membership and service revenues, rental income, and other miscellaneous revenues, none of which are individually significant. |
Cost of Sales and Selling, Gene
Cost of Sales and Selling, General and Administrative Expenses | 12 Months Ended |
Jan. 30, 2021 | |
Cost of Sales and Selling, General and Administrative Expenses [Abstract] | |
Cost of Sales and Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses The following table illustrates the primary items classified in each major expense category: Cost of Sales Selling, General and Administrative Expenses Total cost of products sold including Compensation and benefit costs for stores and headquarters, except ship from store costs classified as cost of sales Occupancy and operating costs of retail and headquarters facilities Advertising, offset by vendor income that is a reimbursement of specific, incremental, and identifiable costs Pre-opening and exit costs of stores and other facilities Credit cards servicing expenses Costs associated with accepting third-party bank issued payment cards Litigation and defense costs and related insurance recoveries Other administrative costs Note: The classification of these expenses varies across the retail industry. |
Consideration Received from Ven
Consideration Received from Vendors | 12 Months Ended |
Jan. 30, 2021 | |
Consideration Received from Vendors | |
Consideration Received from Vendors | Consideration Received from Vendors We receive consideration for a variety of vendor-sponsored programs, such as volume rebates, markdown allowances, promotions, and advertising allowances and for our compliance programs, referred to as "vendor income." Additionally, under our compliance programs, vendors are charged for merchandise shipments that do not meet our requirements (violations), such as late or incomplete shipments. Substantially all vendor income is recorded as a reduction of Cost of Sales. We establish a receivable for vendor income that is earned but not yet received. Based on historical trending and data, this receivable is computed by forecasting vendor income collections and estimating the amount earned. The majority of the year-end vendor income receivables are collected within the following fiscal quarter, and we do not believe there is a reasonable likelihood that the assumptions used in our estimate will change significantly. Not e 10 provides additional information. |
Advertising Costs
Advertising Costs | 12 Months Ended |
Jan. 30, 2021 | |
Advertising Costs | |
Advertising Costs | Advertising Costs Advertising costs, which primarily consist of newspaper circulars, digital advertisements, and media broadcast, are generally expensed at first showing or distribution of the advertisement. Reimbursements from vendors that are for specific, incremental, and identifiable advertising costs are recognized as offsets of these advertising costs within Selling, General and Administrative Expenses (SG&A Expenses). Net advertising costs were $1.5 billion , $1.6 billion, and $1.5 billion in 2020, 2019, and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Fair Value Measurements - Recurring Basis Fair Value as of (millions) Classification Pricing Category January 30, 2021 February 1, 2020 Assets Short-term investments (a) Cash and Cash Equivalents Level 1 $ 7,644 $ 1,810 Prepaid forward contracts (b) Other Current Assets Level 1 38 23 Equity securities (c) Other Current Assets Level 1 — 39 Interest rate swaps (d) Other Noncurrent Assets Level 2 188 137 (a) Carrying value approximates fair value because maturities are less than three months. (b) Initially valued at transaction price. Subsequently valued by reference to the market price of Target common stock. (c) Represents our investment in Casper common stock. (d) Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). See Note 17 for additional information on interest rate swaps. In 2020 and 2019, we recorded pretax losses of $19 million and $41 million, respectively, related to our investment in Casper within Net Other (Income) / Expense. We sold our investment during 2020. Significant Financial Instruments not Measured at Fair Value (a) As of January 30, 2021 As of February 1, 2020 (millions) Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,643 $ 12,787 $ 9,992 $ 11,864 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Jan. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments with an original maturity of three months or less from the time of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. Cash and Cash Equivalents (millions) January 30, 2021 February 1, 2020 Cash $ 307 $ 326 Short-term investments 7,644 1,810 Receivables from third-party financial institutions for credit and debit card transactions 560 441 Cash and cash equivalents (a) $ 8,511 $ 2,577 (a) We have access to these funds without any significant restrictions, taxes or penalties. As of January 30, 2021, and February 1, 2020, we reclassified book overdrafts of $240 million and $209 million, respectively, to Accounts Payable and $24 million and $23 million, respectively, to Accrued and Other Current Liabilities. |
Inventory
Inventory | 12 Months Ended |
Jan. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The vast majority of our inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Inventory cost includes the amount we pay to our suppliers to acquire inventory, freight costs incurred to deliver product to our distribution centers and stores, and import costs, reduced by vendor income and cash discounts. Distribution center operating costs, including compensation and benefits, are expensed in the period incurred. Inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jan. 30, 2021 | |
Other Current Assets | |
Other Current Assets | Other Current Assets Other Current Assets (millions) January 30, 2021 February 1, 2020 Accounts and other receivables $ 631 $ 498 Vendor income receivable 504 464 Prepaid expenses 171 154 Other 286 217 Total $ 1,592 $ 1,333 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, including assets acquired under finance leases, is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Depreciation expense for 2020, 2019, and 2018 was $2.5 billion, $2.6 billion, and $2.5 billion, respectively, including depreciation expense included in Cost of Sales. For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. Estimated Useful Lives Life (Years) Buildings and improvements 8-39 Fixtures and equipment 2-15 Computer hardware and software 2-7 We review long-lived assets for impairment when store performance expectations, events, or changes in circumstances—such as a decision to relocate or close a store or distribution center, discontinue a project, or make significant software changes—indicate that the asset's carrying value may not be recoverable. We recognized impairment losses of $62 million, $23 million, and $92 million during 2020, 2019, and 2018, respectively. For asset groups classified as held for sale, measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. We estimate fair value by obtaining market appraisals, obtaining valuations from third-party brokers, or using other valuation techniques. Impairments are recorded in SG&A Expenses. |
Other Noncurrent Assets
Other Noncurrent Assets | 12 Months Ended |
Jan. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |
Other Noncurrent Assets | Other Noncurrent Assets Other Noncurrent Assets (millions) January 30, 2021 February 1, Goodwill and intangible assets $ 668 $ 686 Company-owned life insurance investments, net of loans 450 418 Other 268 254 Total $ 1,386 $ 1,358 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill totaled $631 million and $633 million as of January 30, 2021, and February 1, 2020, respectively. No impairments were recorded in 2020, 2019, or 2018 as a result of the annual goodwill impairment tests performed. Intangible assets, net of accumulated amortization, totaled $37 million and $53 million as of January 30, 2021, and February 1, 2020, respectively, and primarily related to trademarks and customer relationships. We use both accelerated and straight-line methods to amortize definite-lived intangible assets over 4 to 15 years. The weighted average life of intangible assets was 8 years as of January 30, 2021. Amortization expense was $15 million, $13 million, and $14 million in 2020, 2019, and 2018, respectively, and is estimated to be less than $15 million annually through 2025. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Accrued and Other Current Liabilities | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and Other Current Liabilities (millions) January 30, 2021 February 1, 2020 Wages and benefits $ 1,677 $ 1,158 Real estate, sales, and other taxes payable 1,103 601 Gift card liability, net of estimated breakage 1,035 935 Income tax payable 473 129 Dividends payable 341 333 Current portion of operating lease liabilities 211 200 Workers' compensation and general liability (a) 169 155 Interest payable 79 69 Other 1,034 826 Total $ 6,122 $ 4,406 (a) We retain a substantial portion of the risk related to general liability and workers' compensation claims. We estimate our ultimate cost based on analysis of historical data and actuarial estimates. General liability and workers' compensation liabilities are recorded at our estimate of their net present value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We are exposed to claims and litigation arising in the ordinary course of business and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. When a loss is probable, we record an accrual based on the reasonably estimable loss or range of loss. When no point of loss is more likely than another, we record the lowest amount in the estimated range of loss and, if material, disclose the estimated range of loss. We do not record liabilities for reasonably possible loss contingencies, but do disclose a range of reasonably possible losses if they are material and we are able to estimate such a range. If we cannot provide a range of reasonably possible losses, we explain the factors that prevent us from determining such a range. Historically, adjustments to our estimates have not been material. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not believe that any of these identified claims or litigation will be material to our results of operations, cash flows, or financial condition. Commitments Purchase obligations, which include all legally binding contracts such as merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments, firm minimum commitments for inventory purchases, and service contracts, were $785 million and $676 million as of January 30, 2021, and February 1, 2020, respectively. These purchase obligations are primarily due within three years and recorded as liabilities when goods are received or services rendered. Real estate obligations, which include legally binding minimum lease payments for leases signed but not yet commenced, and commitments for the purchase, construction, or remodeling of real estate and facilities, were $2.1 billion and $1.4 billion as of January 30, 2021, and February 1, 2020, respectively. Over half of these real estate obligations are due within five years, a portion of which are recorded as liabilities. We issue inventory purchase orders in the ordinary course of business, which represent authorizations to purchase that are cancelable by their terms. We do not consider purchase orders to be firm inventory commitments. If we choose to cancel a purchase order, we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation. |
Commercial Paper and Long-Term
Commercial Paper and Long-Term Debt | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Commercial Paper and Long-Term Debt | Commercial Paper and Long-Term Debt As of January 30, 2021, the carrying value and maturities of our debt portfolio were as follows: Debt Maturities January 30, 2021 (dollars in millions) Rate (a) Balance Due 2021-2025 3.0 % $ 3,607 Due 2026-2030 3.0 3,392 Due 2031-2035 6.6 507 Due 2036-2040 6.8 936 Due 2041-2045 4.0 1,084 Due 2046-2050 3.8 1,117 Total notes and debentures 3.7 10,643 Swap valuation adjustments 183 Finance lease liabilities 1,854 Less: Amounts due within one year (1,144) Long-term debt and other borrowings $ 11,536 (a) Reflects the dollar weighted average stated interest rate as of year-end. Required Principal Payments (millions) 2021 2022 2023 2024 2025 Total required principal payments $ 1,056 $ 63 $ — $ 1,000 $ 1,500 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. 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 January 2020, we issued $750 million of 10-year unsecured fixed rate debt at 2.350 percent, and separately, we redeemed $1.0 billion of 3.875 percent unsecured fixed rate debt before its maturity. We recognized a loss on early retirement of approximately $10 million, which was recorded in Net Interest Expense. In March 2019, we issued $1.0 billion of 10-year unsecured fixed rate debt at 3.375 percent, and in June 2019, we repaid $1.0 billion of 2.3 percent unsecured fixed rate debt at maturity. We obtain short-term financing from time to time under our commercial paper program. Commercial Paper (dollars in millions) 2020 2019 2018 Maximum daily amount outstanding during the year $ — $ 744 $ 658 Average amount outstanding during the year — 41 63 Amount outstanding at year-end — — — Weighted average interest rate — % 2.36 % 2.00 % We have a committed $2.5 billion unsecured revolving credit facility that expires in October 2023. No balances were outstanding at any time during 2020, 2019, or 2018. Substantially all of our outstanding borrowings are senior, unsecured obligations. Most of our long-term debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants, which have no practical effect on our ability to pay dividends. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jan. 30, 2021 | |
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 7 provides the fair value and classification of these instruments. Under our swap agreements, we pay a floating rate equal to 1-month LIBOR and receive a weighted average fixed rate of 2.6 percent. The agreements have a weighted average remaining maturity of 6.9 years. As of January 30, 2021, and February 1, 2020, interest rate swaps with notional amounts totaling $1.5 billion were designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during 2020 and 2019. As of January 30, 2021, 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. As of January 30, 2021, a $5 million gain 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) January 30, 2021 February 1, 2020 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,677 $ 1,630 Cumulative hedging adjustments, included in carrying amount 183 137 Effect of Hedges on Net Interest Expense (millions) 2020 2019 2018 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 46 $ 130 $ 13 Hedged debt (46) (130) (13) Total $ — $ — $ — |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases We lease certain retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and nonlease components for new and reassessed leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores. Leases (millions) Classification January 30, 2021 February 1, 2020 Assets Operating Operating Lease Assets $ 2,227 $ 2,236 Finance Buildings and Improvements, net of Accumulated Depreciation (a) 1,504 1,180 Total leased assets $ 3,731 $ 3,416 Liabilities Current Operating Accrued and Other Current Liabilities $ 211 $ 200 Finance Current Portion of Long-term Debt and Other Borrowings 88 67 Noncurrent Operating Noncurrent Operating Lease Liabilities 2,218 2,275 Finance Long-term Debt and Other Borrowings 1,766 1,303 Total lease liabilities $ 4,283 $ 3,845 Note: We use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. (a) Finance lease assets are recorded net of accumulated amortization of $550 million and $441 million as of January 30, 2021, and February 1, 2020, respectively. Lease Cost (millions) Classification 2020 2019 2018 Operating lease cost (a) SG&A Expenses $ 332 $ 287 $ 251 Finance lease cost Amortization of leased assets Depreciation and Amortization (b) 105 82 65 Interest on lease liabilities Net Interest Expense 62 51 42 Sublease income (c) Other Revenue (15) (13) (11) Net lease cost $ 484 $ 407 $ 347 (a) 2020 includes $44 million of short-term leases and variable lease costs. Short-term and variable lease costs were insignificant for 2019 and 2018. (b) Supply chain-related amounts are included in Cost of Sales. (c) Sublease income excludes rental income from owned properties of $48 million, $48 million, and $47 million for 2020, 2019, and 2018, respectively, which is included in Other Revenue. Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2021 $ 289 $ 152 $ 441 2022 290 159 449 2023 283 158 441 2024 269 155 424 2025 256 154 410 After 2025 1,694 1,687 3,381 Total lease payments $ 3,081 $ 2,465 $ 5,546 Less: Interest 652 611 Present value of lease liabilities $ 2,429 $ 1,854 (a) Operating lease payments include $847 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $231 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Finance lease payments include $160 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $1.1 billion of legally binding minimum lease payments for leases signed but not yet commenced. Lease Term and Discount Rate January 30, 2021 February 1, 2020 Weighted average remaining lease term (years) Operating leases 12.6 13.2 Finance leases 15.8 15.4 Weighted average discount rate Operating leases 3.54 % 3.71 % Finance leases 3.68 % 4.23 % Other Information (millions) 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 284 $ 254 $ 231 Operating cash flows from finance leases 59 49 45 Financing cash flows from finance leases 70 57 80 |
Leases | Leases We lease certain retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and nonlease components for new and reassessed leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores. Leases (millions) Classification January 30, 2021 February 1, 2020 Assets Operating Operating Lease Assets $ 2,227 $ 2,236 Finance Buildings and Improvements, net of Accumulated Depreciation (a) 1,504 1,180 Total leased assets $ 3,731 $ 3,416 Liabilities Current Operating Accrued and Other Current Liabilities $ 211 $ 200 Finance Current Portion of Long-term Debt and Other Borrowings 88 67 Noncurrent Operating Noncurrent Operating Lease Liabilities 2,218 2,275 Finance Long-term Debt and Other Borrowings 1,766 1,303 Total lease liabilities $ 4,283 $ 3,845 Note: We use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. (a) Finance lease assets are recorded net of accumulated amortization of $550 million and $441 million as of January 30, 2021, and February 1, 2020, respectively. Lease Cost (millions) Classification 2020 2019 2018 Operating lease cost (a) SG&A Expenses $ 332 $ 287 $ 251 Finance lease cost Amortization of leased assets Depreciation and Amortization (b) 105 82 65 Interest on lease liabilities Net Interest Expense 62 51 42 Sublease income (c) Other Revenue (15) (13) (11) Net lease cost $ 484 $ 407 $ 347 (a) 2020 includes $44 million of short-term leases and variable lease costs. Short-term and variable lease costs were insignificant for 2019 and 2018. (b) Supply chain-related amounts are included in Cost of Sales. (c) Sublease income excludes rental income from owned properties of $48 million, $48 million, and $47 million for 2020, 2019, and 2018, respectively, which is included in Other Revenue. Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2021 $ 289 $ 152 $ 441 2022 290 159 449 2023 283 158 441 2024 269 155 424 2025 256 154 410 After 2025 1,694 1,687 3,381 Total lease payments $ 3,081 $ 2,465 $ 5,546 Less: Interest 652 611 Present value of lease liabilities $ 2,429 $ 1,854 (a) Operating lease payments include $847 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $231 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Finance lease payments include $160 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $1.1 billion of legally binding minimum lease payments for leases signed but not yet commenced. Lease Term and Discount Rate January 30, 2021 February 1, 2020 Weighted average remaining lease term (years) Operating leases 12.6 13.2 Finance leases 15.8 15.4 Weighted average discount rate Operating leases 3.54 % 3.71 % Finance leases 3.68 % 4.23 % Other Information (millions) 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 284 $ 254 $ 231 Operating cash flows from finance leases 59 49 45 Financing cash flows from finance leases 70 57 80 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings from continuing operations before income taxes were $5.5 billion, $4.2 billion, and $3.7 billion during 2020, 2019, and 2018, respectively, including $764 million, $653 million, and $565 million earned by our foreign entities subject to tax outside of the U.S. Tax Rate Reconciliation – Continuing Operations 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of the federal tax benefit 3.3 3.7 3.6 International (1.2) (1.4) (1.3) Tax Act (a) — — (1.0) Excess tax benefit related to share-based payments (1.0) (0.4) (0.3) Federal tax credits (0.6) (0.8) (1.1) Other (0.3) (0.1) (0.6) Effective tax rate 21.2 % 22.0 % 20.3 % (a) Represents the discrete benefit of the final adjustment to remeasure certain of our net deferred tax liabilities at the lower U.S. corporate income tax rate enacted by the Tax Cuts and Jobs Act of 2017 (Tax Act). Provision for Income Taxes (millions) 2020 2019 2018 Current: Federal $ 1,013 $ 536 $ 257 State 281 169 116 International 68 38 51 Total current 1,362 743 424 Deferred: Federal (118) 150 263 State (64) 29 57 International (2) (1) 2 Total deferred (184) 178 322 Total provision $ 1,178 $ 921 $ 746 . Net Deferred Tax Asset / (Liability) (millions) January 30, 2021 February 1, 2020 Gross deferred tax assets: Accrued and deferred compensation $ 623 $ 286 Accruals and reserves not currently deductible 192 147 Self-insured benefits 138 124 Deferred occupancy income 141 148 Lease liabilities 1,108 1,000 Other 55 58 Total gross deferred tax assets 2,257 1,763 Gross deferred tax liabilities: Property and equipment (2,003) (1,767) Leased assets (996) (880) Inventory (146) (156) Other (82) (74) Total gross deferred tax liabilities (3,227) (2,877) Total net deferred tax liability $ (970) $ (1,114) We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S. Internal Revenue Service (IRS) has completed exams on the U.S. federal income tax returns for years 2018 and prior. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before 2013. Reconciliation of Liability for Unrecognized Tax Benefits (millions) 2020 2019 2018 Balance at beginning of period $ 160 $ 300 $ 325 Additions based on tax positions related to the current year 35 28 58 Additions for tax positions of prior years 32 13 10 Reductions for tax positions of prior years (36) (69) (91) Settlements (10) (112) (2) Balance at end of period $ 181 $ 160 $ 300 If we were to prevail on all unrecognized tax benefits recorded, $99 million of the $181 million reserve would benefit the effective tax rate. In addition, the reversal of accrued penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. During the years ended January 30, 2021, February 1, 2020, and February 2, 2019, we recorded an expense / (benefit) from accrued penalties and interest of $(12) million, $(2) million, and $3 million, respectively. As of January 30, 2021, February 1, 2020, and February 2, 2019 total accrued interest and penalties were $12 million, $27 million, and $32 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefits with respect to our other unrecognized tax positions will increase or decrease during the next twelve months; however, an estimate of the amount or range of the change cannot be made at this time. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities Other Noncurrent Liabilities (millions) January 30, 2021 February 1, 2020 Deferred compensation $ 549 $ 493 Deferred occupancy income (a) 509 539 Income and other taxes payable 436 194 Workers' compensation and general liability 341 310 Pension benefits 57 107 Other 47 81 Total $ 1,939 $ 1,724 (a) To be amortized evenly through 2038. |
Share Repurchase
Share Repurchase | 12 Months Ended |
Jan. 30, 2021 | |
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 arrangements, and other privately negotiated transactions with financial institutions. Share Repurchase Activity (millions, except per share data) 2020 2019 2018 Total number of shares purchased 5.7 16.0 27.2 Average price paid per share $ 107.58 $ 95.07 $ 75.88 Total investment $ 609 $ 1,518 $ 2,067 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We maintain a long-term incentive plan (the Plan) for key team members and non-employee members of our Board of Directors. The Plan allows us to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards, or a combination of awards (collectively, share-based awards). The number of unissued common shares reserved for future grants under the Plan was 35.3 million as of January 30, 2021. Compensation expense associated with share-based awards is recognized on a straight-line basis over the required service period and reflects estimated forfeitures. Share-based compensation expense recognized in SG&A Expenses was $210 million, $152 million, and $134 million, and the related income tax benefit was $39 million, $27 million, and $26 million, in 2020, 2019, and 2018, respectively. Restricted Stock Units We issue restricted stock units and performance-based restricted stock units generally with 3-year cliff or 4-year graduated vesting from the grant date (collectively restricted stock units) to certain team members. The final number of shares issued under performance-based restricted stock units is based on our total shareholder return relative to a retail peer group over a 3-year performance period. We also regularly issue restricted stock units to our Board of Directors, which vest quarterly over a 1-year period and are settled in shares of Target common stock upon departure from the Board. The fair value for restricted stock units is calculated based on the stock price on the date of grant, incorporating an analysis of the total shareholder return performance measure where applicable. The weighted average grant date fair value for restricted stock units was $110.80, $80.01, and $72.65 in 2020, 2019, and 2018, respectively. Restricted Stock Unit Activity Total Nonvested Units Restricted Stock (a) Grant Date Fair Value (b) February 1, 2020 4,316 $ 72.93 Granted 1,833 110.80 Forfeited (358) 80.65 Vested (1,427) 70.55 January 30, 2021 4,364 $ 88.99 (a) Represents the number of shares of restricted stock units, in thousands. For performance-based restricted stock units, assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding restricted stock units and performance-based restricted stock units as of January 30, 2021 was 4.33 million. (b) Weighted average per unit . The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately be issued. As of January 30, 2021, there was $179 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted average period of 2.5 years. The fair value of restricted stock units vested and converted to shares of Target common stock was $151 million, $89 million, and $119 million in 2020, 2019, and 2018, respectively. Performance Share Units We issue performance share units to certain team members that represent shares potentially issuable in the future. Issuance is based upon our performance, generally relative to a retail peer group, over a 3-year performance period on certain measures primarily including sales growth, after-tax return on invested capital, and EPS growth. The fair value of performance share units is calculated based on the stock price on the date of grant. The weighted average grant date fair value for performance share units was $106.00, $86.81, and $70.94 in 2020, 2019, and 2018, respectively. Performance Share Unit Activity Total Nonvested Units Performance Share Units (a) Grant Date Fair Value (b) February 1, 2020 3,575 $ 72.80 Granted 786 106.00 Forfeited (746) 77.73 Vested (827) 62.50 January 30, 2021 2,788 $ 87.93 (a) Represents the number of performance share units, in thousands. Assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of January 30, 2021 was 2.13 million. (b) Weighted average per unit. The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately be issued. Future compensation expense for unvested awards could reach a maximum of $112 million assuming payout of all unvested awards. The unrecognized expense is expected to be recognized over a weighted average period of 1.7 years. The fair value of performance share units vested and converted to shares of Target common stock was $82 million, $50 million, and $43 million in 2020, 2019, and 2018, respectively. Stock Options In May 2017, we granted price-vested stock options to certain team members. Additionally, through 2013, we granted nonqualified stock options to certain team members. All outstanding stock options are vested and currently exercisable. Stock Option Activity Stock Options Total Outstanding Exercisable Number of Options (a) Exercise Price (b) Intrinsic Value (c) Number of Options (a) Exercise Price (b) Intrinsic Value (c) February 1, 2020 2,478 $ 55.72 $ 136 714 $ 56.02 $ 39 Granted — — Expired/forfeited — — Exercised/issued (2,011) 55.70 January 30, 2021 467 $ 55.81 $ 59 467 $ 55.81 $ 59 (a) In thousands. (b) Weighted average per share. (c) Represents stock price appreciation subsequent to the grant date, in millions. Stock Option Exercises (millions) 2020 2019 2018 Cash received for exercise price $ 23 $ 73 $ 96 Intrinsic value 161 59 50 Income tax benefit 41 15 12 |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jan. 30, 2021 | |
Defined Contribution Plans | |
Defined Contribution Plans | Defined Contribution Plans Team members who meet eligibility requirements can participate in a defined contribution 401(k) plan by investing up to 80 percent of their eligible earnings, as limited by statute or regulation. We match 100 percent of each team member's contribution up to 5 percent of eligible earnings. Company match contributions are made to funds designated by the participant, none of which are based on Target common stock. In addition, we maintain an unfunded, nonqualified deferred compensation plan for a broad management group whose participation in our 401(k) plan is limited by statute or regulation. These team members choose from a menu of crediting rate alternatives that are generally the same as the investment choices in our 401(k) plan, but also includes a fund based on Target common stock. We credit an additional 2 percent per year to the accounts of all active participants, excluding executive officers, in part to recognize the risks inherent to their participation in this plan. We also maintain a frozen, unfunded, nonqualified deferred compensation plan covering approximately 50 participants. Our total liability under these plans was $602 million and $551 million as of January 30, 2021, and February 1, 2020, respectively. We mitigate our risk of offering the nonqualified plans through investing in company-owned life insurance and prepaid forward contracts that substantially offset our economic exposure to the returns of these plans. These investments are general corporate assets and are marked to market with the related gains and losses recognized in the Consolidated Statements of Operations in the period they occur. Plan Expenses (millions) 2020 2019 2018 401(k) plan matching contributions expense $ 281 $ 237 $ 229 Nonqualified deferred compensation plans Benefits expense $ 86 $ 80 $ 18 Related investment (income) / expense (58) (53) 6 Nonqualified plans net expense $ 28 $ 27 $ 24 |
Pension Plans
Pension Plans | 12 Months Ended |
Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans We have a U.S. qualified defined benefit pension plan covering team members who meet eligibility requirements. This plan is closed to new participants. Active participants accrue benefits under a final average pay feature or a cash balance feature. We also have unfunded, nonqualified pension plans for team members with qualified plan compensation restrictions, as well as international plans. Eligibility and the level of benefits under all plans vary depending on each team member's full-time or part-time status, date of hire, age, length of service, and/or compensation. Funded Status Qualified Plan Nonqualified and International Plans (millions) 2020 2019 2020 2019 Projected benefit obligations $ 4,594 $ 4,492 $ 74 $ 66 Fair value of plan assets 4,588 4,430 11 11 Funded / (underfunded) status $ (6) $ (62) $ (63) $ (55) Contributions and Estimated Future Benefit Payments Our obligations to plan participants can be met over time through a combination of company contributions to these plans and earnings on plan assets. We are not required to make any contributions to our qualified defined benefit pension plan in 2021. However, depending on investment performance and plan funded status, we may elect to make a contribution. Estimated Future Benefit Payments (millions) Pension Benefits 2021 $ 280 2022 218 2023 226 2024 233 2025 239 2026 - 2030 1,279 Cost of Plans Net Pension Benefits Expense (millions) Classification 2020 2019 2018 Service cost benefits earned SG&A Expenses $ 103 $ 93 $ 95 Interest cost on projected benefit obligation Net Other (Income) / Expense 118 149 146 Expected return on assets Net Other (Income) / Expense (242) (248) (246) Amortization of losses Net Other (Income) / Expense 127 62 82 Amortization of prior service cost Net Other (Income) / Expense (11) (11) (11) Settlement charges Net Other (Income) / Expense 1 1 4 Total $ 96 $ 46 $ 70 Assumptions Benefit Obligation Weighted Average Assumptions 2020 2019 Discount rate 2.84 % 3.13 % Average assumed rate of compensation increase 3.00 3.00 Cash balance plan interest crediting rate 4.64 4.64 Net Periodic Benefit Expense Weighted Average Assumptions 2020 2019 2018 Discount rate 3.13 % 4.28 % 3.93 % Expected long-term rate of return on plan assets 6.10 6.30 6.30 Average assumed rate of compensation increase 3.00 3.00 3.00 Cash balance plan interest crediting rate 4.64 4.64 4.64 The weighted average assumptions used to measure net periodic benefit expense each year are the rates as of the beginning of the year (i.e., the prior measurement date). Our most recent compound annual rate of return on qualified plan assets was 10.2 percent, 9.0 percent, 7.6 percent, and 7.0 percent for the 5-year, 10-year, 15-year, and 20-year time periods, respectively. The market-related value of plan assets is used in calculating the expected return on assets. Historical differences between expected and actual returns are deferred and recognized in the market-related value over a 5-year period from the year in which they occur. We review the expected long-term rate of return annually and revise it as appropriate. Additionally, we monitor the mix of investments in our portfolio to ensure alignment with our long-term strategy to manage pension cost and reduce volatility in our assets. Our 2020 expected annualized long-term rate of return assumptions were 7.0 percent for domestic equity securities, 7.5 percent for international equity securities, 3.5 percent for long-duration debt securities, 7.0 percent for diversified funds, and 7.5 percent for other investments. These estimates are a judgmental matter in which we consider the composition of our asset portfolio, our historical long-term investment performance, and current market conditions. Benefit Obligation Change in Projected Benefit Obligation Qualified Plan Nonqualified and International Plans (millions) 2020 2019 2020 2019 Benefit obligation at beginning of period $ 4,492 $ 3,905 $ 66 $ 53 Service cost 97 90 6 3 Interest cost 117 146 1 3 Actuarial loss (a) 144 615 7 11 Participant contributions 7 11 — — Benefits paid (263) (275) (6) (4) Benefit obligation at end of period (b) $ 4,594 $ 4,492 $ 74 $ 66 (a) 2020 and 2019 actuarial losses relate to the decreases in the weighted average discount rate. (b) Accumulated benefit obligation—the present value of benefits earned to date assuming no future salary growth—is materially consistent with the projected benefit obligation in each period presented. Plan Assets Change in Plan Assets Qualified Plan Nonqualified and International Plans (millions) 2020 2019 2020 2019 Fair value of plan assets at beginning of period $ 4,430 $ 3,915 $ 11 $ 10 Actual return on plan assets 414 729 2 — Employer contributions — 50 4 5 Participant contributions 7 11 — — Benefits paid (263) (275) (6) (4) Fair value of plan assets at end of period $ 4,588 $ 4,430 $ 11 $ 11 Our asset allocation policy is designed to reduce the long-term cost of funding our pension obligations. The plan invests with both passive and active investment managers depending on the investment. The plan also seeks to reduce the risk associated with adverse movements in interest rates by employing an interest rate hedging program, which includes the use of derivative instruments. Asset Category Current Targeted Actual Allocation Allocation 2020 2019 Domestic equity securities (a) 15 % 16 % 14 % International equity securities 10 10 10 Debt securities 45 44 46 Diversified funds 25 25 25 Other (b) 5 5 5 Total 100 % 100 % 100 % (a) Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets in both periods presented. (b) Other assets include private equity, mezzanine and high-yield debt, natural resources and timberland funds, derivative instruments, and real estate. Fair Value Measurements Fair Value at (millions) Pricing Category January 31, 2021 January 31, 2020 Cash and cash equivalents Level 1 $ 19 $ 12 Derivatives Level 2 (5) 18 Government securities (a) Level 2 516 604 Fixed income (b) Level 2 1,424 1,330 1,954 1,964 Investments valued using NAV per share (c) Fixed income 68 64 Private equity funds 73 75 Cash and cash equivalents 115 163 Common collective trusts 1,122 961 Diversified funds 1,165 1,109 Other 102 105 Total plan assets $ 4,599 $ 4,441 (a) Investments in government securities and long-term government bonds. (b) Investments in corporate and municipal bonds. (c) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Position Valuation Technique Cash and cash equivalents Carrying value approximates fair value. Derivatives Swap derivatives - Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Government securities and fixed income Valued using matrix pricing models and quoted prices of securities with similar characteristics. Amounts Included in Shareholders' Investment Amounts in Accumulated Other Comprehensive Loss (millions) 2020 2019 Net actuarial loss $ 987 $ 1,138 Prior service credits (2) (13) Amounts in Accumulated Other Comprehensive Loss (a) $ 985 $ 1,125 (a) $735 million and $837 million, net of tax, at the end of 2020 and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Change in Accumulated Other Comprehensive Loss (millions) Cash Flow Currency Pension Total February 1, 2020 $ (12) $ (19) $ (837) $ (868) Other comprehensive income before reclassifications, net of tax 3 1 15 19 Amounts reclassified from AOCI, net of tax 6 (a) — 87 (b) 93 January 30, 2021 $ (3) $ (18) $ (735) $ (756) (a) Represents amortization of gains and losses on cash flow hedges, net of taxes, which is recorded in Net Interest Expense. (b) Represents amortization of pension gains and losses, net of $30 million of taxes, which is recorded in Net Other (Income)/Expense. See Note 24 for additional information. |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization We are a general merchandise retailer selling products to our guests through our stores and digital channels. We operate as a single segment that includes all of our continuing operations, which are designed to enable guests to purchase products seamlessly in stores or through our digital channels. Nearly all of our revenues are generated in the United States (U.S.). The vast majority of our long-lived assets are located within the U.S. |
Consolidation | Consolidation The consolidated financial statements include the balances of Target and its subsidiaries after elimination of intercompany balances and transactions. All material subsidiaries are wholly owned. We consolidate variable interest entities where it has been determined that Target is the primary beneficiary of those entities' operations. |
Use of estimates | Use of estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions affecting reported amounts in the consolidated financial statements and accompanying notes. Actual results may differ significantly from those estimates. |
Fiscal year | Fiscal year Our fiscal year ends on the Saturday nearest January 31. Unless otherwise stated, references to years in this report relate to fiscal years, rather than to calendar years. |
Revenues | 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. Total revenues do not include sales tax because we are a pass-through conduit for collecting and remitting sales taxes. Generally, guests may return national brand merchandise within 90 days of purchase and owned and exclusive brands within one year of purchase. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of January 30, 2021, February 1, 2020, and February 2, 2019, the liability for estimated returns was $139 million, $117 million, and $116 million, respectively. We routinely enter into arrangements with vendors whereby we do not purchase or pay for merchandise until the merchandise is ultimately sold to a guest. Under the vast majority of these arrangements, which represent less than 5 percent of consolidated sales, we record revenue and related costs gross. We concluded that we are the principal in these transactions for a number of reasons, most notably because we 1) control the overall economics of the transactions, including setting the sales price and realizing the majority of cash flows from the sale, 2) control the relationship with the customer, and 3) are responsible for fulfilling the promise to provide goods to the customer. Merchandise received under these arrangements is not included in Inventory because the purchase and sale of this inventory are virtually simultaneous. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions. Guests receive a 5 percent discount on nearly all purchases and receive free shipping at Target.com when they use their Target Debit Card, Target Credit Card, or Target MasterCard (RedCards). The discount is included as a sales reduction and was $1.1 billion, $962 million, and $953 million in 2020, 2019, and 2018, respectively. Target Circle program members earn 1 percent rewards on nearly all non-RedCard purchases. As of January 30, 2021, deferred revenue of $72 million related to this loyalty program was included in Accrued and Other Current Liabilities. Amounts related to this program were insignificant at February 1, 2020. Credit card profit sharing – We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other – Includes advertising, Shipt membership and service revenues, rental income, and other miscellaneous revenues, none of which are individually significant. |
Cost of Sales | Cost of SalesTotal cost of products sold including |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Compensation and benefit costs for stores and headquarters, except ship from store costs classified as cost of sales Occupancy and operating costs of retail and headquarters facilities Advertising, offset by vendor income that is a reimbursement of specific, incremental, and identifiable costs Pre-opening and exit costs of stores and other facilities Credit cards servicing expenses Costs associated with accepting third-party bank issued payment cards Litigation and defense costs and related insurance recoveries Other administrative costs |
Consideration Received from Vendors | We receive consideration for a variety of vendor-sponsored programs, such as volume rebates, markdown allowances, promotions, and advertising allowances and for our compliance programs, referred to as "vendor income." Additionally, under our compliance programs, vendors are charged for merchandise shipments that do not meet our requirements (violations), such as late or incomplete shipments. Substantially all vendor income is recorded as a reduction of Cost of Sales. We establish a receivable for vendor income that is earned but not yet received. Based on historical trending and data, this receivable is computed by forecasting vendor income collections and estimating the amount earned. The majority of the year-end vendor income receivables are collected within the following fiscal quarter, and we do not believe there is a reasonable likelihood that the assumptions used in our estimate will change significantly. Not e 10 provides additional information. |
Advertising Costs | Advertising costs, which primarily consist of newspaper circulars, digital advertisements, and media broadcast, are generally expensed at first showing or distribution of the advertisement. Reimbursements from vendors that are for specific, incremental, and identifiable advertising costs are recognized as offsets of these advertising costs within Selling, General and Administrative Expenses (SG&A Expenses). |
Fair Value Measurements | Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). |
Cash Equivalents | Cash equivalents include highly liquid investments with an original maturity of three months or less from the time of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. |
Inventory | The vast majority of our inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Inventory cost includes the amount we pay to our suppliers to acquire inventory, freight costs incurred to deliver product to our distribution centers and stores, and import costs, reduced by vendor income and cash discounts. Distribution center operating costs, including compensation and benefits, are expensed in the period incurred. Inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory. |
Property and Equipment | Property and equipment, including assets acquired under finance leases, is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Depreciation expense for 2020, 2019, and 2018 was $2.5 billion, $2.6 billion, and $2.5 billion, respectively, including depreciation expense included in Cost of Sales. For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. |
Goodwill and Intangible Assets | We use both accelerated and straight-line methods to amortize definite-lived intangible assets over 4 to 15 years. |
Commitments and Contingencies | Contingencies We are exposed to claims and litigation arising in the ordinary course of business and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. When a loss is probable, we record an accrual based on the reasonably estimable loss or range of loss. When no point of loss is more likely than another, we record the lowest amount in the estimated range of loss and, if material, disclose the estimated range of loss. We do not record liabilities for reasonably possible loss contingencies, but do disclose a range of reasonably possible losses if they are material and we are able to estimate such a range. If we cannot provide a range of reasonably possible losses, we explain the factors that prevent us from determining such a range. Historically, adjustments to our estimates have not been material. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not believe that any of these identified claims or litigation will be material to our results of operations, cash flows, or financial condition. Commitments Purchase obligations, which include all legally binding contracts such as merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments, firm minimum commitments for inventory purchases, and service contracts, were $785 million and $676 million as of January 30, 2021, and February 1, 2020, respectively. These purchase obligations are primarily due within three years and recorded as liabilities when goods are received or services rendered. Real estate obligations, which include legally binding minimum lease payments for leases signed but not yet commenced, and commitments for the purchase, construction, or remodeling of real estate and facilities, were $2.1 billion and $1.4 billion as of January 30, 2021, and February 1, 2020, respectively. Over half of these real estate obligations are due within five years, a portion of which are recorded as liabilities. We issue inventory purchase orders in the ordinary course of business, which represent authorizations to purchase that are cancelable by their terms. We do not consider purchase orders to be firm inventory commitments. If we choose to cancel a purchase order, we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation. |
Derivative 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 7 provides the fair value and classification of these instruments. |
Leases | Leases We lease certain retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and nonlease components for new and reassessed leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores. |
Share-Based Compensation | The fair value for restricted stock units is calculated based on the stock price on the date of grant, incorporating an analysis of the total shareholder return performance measure where applicable.The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately be issued. |
Pension Plans | The weighted average assumptions used to measure net periodic benefit expense each year are the rates as of the beginning of the year (i.e., the prior measurement date). Our most recent compound annual rate of return on qualified plan assets was 10.2 percent, 9.0 percent, 7.6 percent, and 7.0 percent for the 5-year, 10-year, 15-year, and 20-year time periods, respectively.The market-related value of plan assets is used in calculating the expected return on assets. Historical differences between expected and actual returns are deferred and recognized in the market-related value over a 5-year period from the year in which they occur. Position Valuation Technique Cash and cash equivalents Carrying value approximates fair value. Derivatives Swap derivatives - Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Government securities and fixed income Valued using matrix pricing models and quoted prices of securities with similar characteristics. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenues (millions) 2020 2019 2018 Apparel and accessories (a) $ 14,772 $ 14,304 $ 13,434 Beauty and household essentials (b) 24,461 20,616 19,296 Food and beverage (c) 18,135 15,039 14,585 Hardlines (d) 16,626 12,595 12,709 Home furnishings and décor (e) 18,231 14,430 14,298 Other 175 146 111 Sales 92,400 77,130 74,433 Credit card profit sharing 666 680 673 Other 495 302 250 Other revenue 1,161 982 923 Total revenue $ 93,561 $ 78,112 $ 75,356 (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 Activity | Gift Card Liability Activity (millions) February 1, 2020 Gift Cards Issued During Current Period But Not Redeemed (b) Revenue January 30, 2021 Gift card liability (a) $ 935 $ 739 $ (639) $ 1,035 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements - Recurring Basis | Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Fair Value Measurements - Recurring Basis Fair Value as of (millions) Classification Pricing Category January 30, 2021 February 1, 2020 Assets Short-term investments (a) Cash and Cash Equivalents Level 1 $ 7,644 $ 1,810 Prepaid forward contracts (b) Other Current Assets Level 1 38 23 Equity securities (c) Other Current Assets Level 1 — 39 Interest rate swaps (d) Other Noncurrent Assets Level 2 188 137 (a) Carrying value approximates fair value because maturities are less than three months. (b) Initially valued at transaction price. Subsequently valued by reference to the market price of Target common stock. (c) Represents our investment in Casper common stock. (d) Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). See Note 17 for additional information on interest rate swaps. |
Schedule of Significant Financial Instruments not Measured at Fair Value | Significant Financial Instruments not Measured at Fair Value (a) As of January 30, 2021 As of February 1, 2020 (millions) Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,643 $ 12,787 $ 9,992 $ 11,864 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and Cash Equivalents (millions) January 30, 2021 February 1, 2020 Cash $ 307 $ 326 Short-term investments 7,644 1,810 Receivables from third-party financial institutions for credit and debit card transactions 560 441 Cash and cash equivalents (a) $ 8,511 $ 2,577 (a) We have access to these funds without any significant restrictions, taxes or penalties. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Current Assets | |
Other Current Assets | Other Current Assets (millions) January 30, 2021 February 1, 2020 Accounts and other receivables $ 631 $ 498 Vendor income receivable 504 464 Prepaid expenses 171 154 Other 286 217 Total $ 1,592 $ 1,333 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Estimated Useful Lives | Estimated Useful Lives Life (Years) Buildings and improvements 8-39 Fixtures and equipment 2-15 Computer hardware and software 2-7 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Noncurrent Assets | Other Noncurrent Assets (millions) January 30, 2021 February 1, Goodwill and intangible assets $ 668 $ 686 Company-owned life insurance investments, net of loans 450 418 Other 268 254 Total $ 1,386 $ 1,358 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accrued and Other Current Liabilities | |
Schedule of Accrued and Other Current Liabilities | Accrued and Other Current Liabilities (millions) January 30, 2021 February 1, 2020 Wages and benefits $ 1,677 $ 1,158 Real estate, sales, and other taxes payable 1,103 601 Gift card liability, net of estimated breakage 1,035 935 Income tax payable 473 129 Dividends payable 341 333 Current portion of operating lease liabilities 211 200 Workers' compensation and general liability (a) 169 155 Interest payable 79 69 Other 1,034 826 Total $ 6,122 $ 4,406 (a) We retain a substantial portion of the risk related to general liability and workers' compensation claims. We estimate our ultimate cost based on analysis of historical data and actuarial estimates. General liability and workers' compensation liabilities are recorded at our estimate of their net present value. |
Commercial Paper and Long-Ter_2
Commercial Paper and Long-Term Debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value and Maturities of Debt Portfolio | As of January 30, 2021, the carrying value and maturities of our debt portfolio were as follows: Debt Maturities January 30, 2021 (dollars in millions) Rate (a) Balance Due 2021-2025 3.0 % $ 3,607 Due 2026-2030 3.0 3,392 Due 2031-2035 6.6 507 Due 2036-2040 6.8 936 Due 2041-2045 4.0 1,084 Due 2046-2050 3.8 1,117 Total notes and debentures 3.7 10,643 Swap valuation adjustments 183 Finance lease liabilities 1,854 Less: Amounts due within one year (1,144) Long-term debt and other borrowings $ 11,536 (a) Reflects the dollar weighted average stated interest rate as of year-end. |
Schedule of Required Principal Payments | Required Principal Payments (millions) 2021 2022 2023 2024 2025 Total required principal payments $ 1,056 $ 63 $ — $ 1,000 $ 1,500 |
Schedule of Short-term Financing | We obtain short-term financing from time to time under our commercial paper program. Commercial Paper (dollars in millions) 2020 2019 2018 Maximum daily amount outstanding during the year $ — $ 744 $ 658 Average amount outstanding during the year — 41 63 Amount outstanding at year-end — — — Weighted average interest rate — % 2.36 % 2.00 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives | Effect of Hedges on Debt (millions) January 30, 2021 February 1, 2020 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,677 $ 1,630 Cumulative hedging adjustments, included in carrying amount 183 137 Effect of Hedges on Net Interest Expense (millions) 2020 2019 2018 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 46 $ 130 $ 13 Hedged debt (46) (130) (13) Total $ — $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Schedule of Leases | Leases (millions) Classification January 30, 2021 February 1, 2020 Assets Operating Operating Lease Assets $ 2,227 $ 2,236 Finance Buildings and Improvements, net of Accumulated Depreciation (a) 1,504 1,180 Total leased assets $ 3,731 $ 3,416 Liabilities Current Operating Accrued and Other Current Liabilities $ 211 $ 200 Finance Current Portion of Long-term Debt and Other Borrowings 88 67 Noncurrent Operating Noncurrent Operating Lease Liabilities 2,218 2,275 Finance Long-term Debt and Other Borrowings 1,766 1,303 Total lease liabilities $ 4,283 $ 3,845 Note: We use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. (a) Finance lease assets are recorded net of accumulated amortization of $550 million and $441 million as of January 30, 2021, and February 1, 2020, respectively. Other Information (millions) 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 284 $ 254 $ 231 Operating cash flows from finance leases 59 49 45 Financing cash flows from finance leases 70 57 80 |
Schedule of Lease Cost | Lease Cost (millions) Classification 2020 2019 2018 Operating lease cost (a) SG&A Expenses $ 332 $ 287 $ 251 Finance lease cost Amortization of leased assets Depreciation and Amortization (b) 105 82 65 Interest on lease liabilities Net Interest Expense 62 51 42 Sublease income (c) Other Revenue (15) (13) (11) Net lease cost $ 484 $ 407 $ 347 (a) 2020 includes $44 million of short-term leases and variable lease costs. Short-term and variable lease costs were insignificant for 2019 and 2018. (b) Supply chain-related amounts are included in Cost of Sales. (c) Sublease income excludes rental income from owned properties of $48 million, $48 million, and $47 million for 2020, 2019, and 2018, respectively, which is included in Other Revenue. Lease Term and Discount Rate January 30, 2021 February 1, 2020 Weighted average remaining lease term (years) Operating leases 12.6 13.2 Finance leases 15.8 15.4 Weighted average discount rate Operating leases 3.54 % 3.71 % Finance leases 3.68 % 4.23 % |
Schedule of Maturity of Operating Lease Liabilities | Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2021 $ 289 $ 152 $ 441 2022 290 159 449 2023 283 158 441 2024 269 155 424 2025 256 154 410 After 2025 1,694 1,687 3,381 Total lease payments $ 3,081 $ 2,465 $ 5,546 Less: Interest 652 611 Present value of lease liabilities $ 2,429 $ 1,854 (a) Operating lease payments include $847 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $231 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Maturity of Finance Lease Liabilities | Maturity of Lease Liabilities (millions) Operating Leases (a) Finance Leases (b) Total 2021 $ 289 $ 152 $ 441 2022 290 159 449 2023 283 158 441 2024 269 155 424 2025 256 154 410 After 2025 1,694 1,687 3,381 Total lease payments $ 3,081 $ 2,465 $ 5,546 Less: Interest 652 611 Present value of lease liabilities $ 2,429 $ 1,854 (a) Operating lease payments include $847 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $231 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Rate Reconciliation - Continuing Operations | Tax Rate Reconciliation – Continuing Operations 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of the federal tax benefit 3.3 3.7 3.6 International (1.2) (1.4) (1.3) Tax Act (a) — — (1.0) Excess tax benefit related to share-based payments (1.0) (0.4) (0.3) Federal tax credits (0.6) (0.8) (1.1) Other (0.3) (0.1) (0.6) Effective tax rate 21.2 % 22.0 % 20.3 % (a) Represents the discrete benefit of the final adjustment to remeasure certain of our net deferred tax liabilities at the lower U.S. corporate income tax rate enacted by the Tax Cuts and Jobs Act of 2017 (Tax Act). |
Schedule of Provision for Income Taxes | Provision for Income Taxes (millions) 2020 2019 2018 Current: Federal $ 1,013 $ 536 $ 257 State 281 169 116 International 68 38 51 Total current 1,362 743 424 Deferred: Federal (118) 150 263 State (64) 29 57 International (2) (1) 2 Total deferred (184) 178 322 Total provision $ 1,178 $ 921 $ 746 |
Schedule of Net Deferred Tax Asset/(Liability) | Net Deferred Tax Asset / (Liability) (millions) January 30, 2021 February 1, 2020 Gross deferred tax assets: Accrued and deferred compensation $ 623 $ 286 Accruals and reserves not currently deductible 192 147 Self-insured benefits 138 124 Deferred occupancy income 141 148 Lease liabilities 1,108 1,000 Other 55 58 Total gross deferred tax assets 2,257 1,763 Gross deferred tax liabilities: Property and equipment (2,003) (1,767) Leased assets (996) (880) Inventory (146) (156) Other (82) (74) Total gross deferred tax liabilities (3,227) (2,877) Total net deferred tax liability $ (970) $ (1,114) |
Schedule of Reconciliation of Liability for Unrecognized Tax Benefits | Reconciliation of Liability for Unrecognized Tax Benefits (millions) 2020 2019 2018 Balance at beginning of period $ 160 $ 300 $ 325 Additions based on tax positions related to the current year 35 28 58 Additions for tax positions of prior years 32 13 10 Reductions for tax positions of prior years (36) (69) (91) Settlements (10) (112) (2) Balance at end of period $ 181 $ 160 $ 300 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other Noncurrent Liabilities (millions) January 30, 2021 February 1, 2020 Deferred compensation $ 549 $ 493 Deferred occupancy income (a) 509 539 Income and other taxes payable 436 194 Workers' compensation and general liability 341 310 Pension benefits 57 107 Other 47 81 Total $ 1,939 $ 1,724 (a) To be amortized evenly through 2038. |
Share Repurchase (Tables)
Share Repurchase (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Equity [Abstract] | |
Schedule of Share repurchases | Share Repurchase Activity (millions, except per share data) 2020 2019 2018 Total number of shares purchased 5.7 16.0 27.2 Average price paid per share $ 107.58 $ 95.07 $ 75.88 Total investment $ 609 $ 1,518 $ 2,067 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | Restricted Stock Unit Activity Total Nonvested Units Restricted Stock (a) Grant Date Fair Value (b) February 1, 2020 4,316 $ 72.93 Granted 1,833 110.80 Forfeited (358) 80.65 Vested (1,427) 70.55 January 30, 2021 4,364 $ 88.99 (a) Represents the number of shares of restricted stock units, in thousands. For performance-based restricted stock units, assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding restricted stock units and performance-based restricted stock units as of January 30, 2021 was 4.33 million. (b) Weighted average per unit . |
Schedule of Performance Share Unit Activity | Performance Share Unit Activity Total Nonvested Units Performance Share Units (a) Grant Date Fair Value (b) February 1, 2020 3,575 $ 72.80 Granted 786 106.00 Forfeited (746) 77.73 Vested (827) 62.50 January 30, 2021 2,788 $ 87.93 (a) Represents the number of performance share units, in thousands. Assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of January 30, 2021 was 2.13 million. (b) Weighted average per unit. |
Schedule of Stock Option Activity | Stock Option Activity Stock Options Total Outstanding Exercisable Number of Options (a) Exercise Price (b) Intrinsic Value (c) Number of Options (a) Exercise Price (b) Intrinsic Value (c) February 1, 2020 2,478 $ 55.72 $ 136 714 $ 56.02 $ 39 Granted — — Expired/forfeited — — Exercised/issued (2,011) 55.70 January 30, 2021 467 $ 55.81 $ 59 467 $ 55.81 $ 59 (a) In thousands. (b) Weighted average per share. (c) Represents stock price appreciation subsequent to the grant date, in millions. Stock Option Exercises (millions) 2020 2019 2018 Cash received for exercise price $ 23 $ 73 $ 96 Intrinsic value 161 59 50 Income tax benefit 41 15 12 |
Defined Contribution Plans (Tab
Defined Contribution Plans (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Defined Contribution Plans | |
Schedule of Plan Expenses | Plan Expenses (millions) 2020 2019 2018 401(k) plan matching contributions expense $ 281 $ 237 $ 229 Nonqualified deferred compensation plans Benefits expense $ 86 $ 80 $ 18 Related investment (income) / expense (58) (53) 6 Nonqualified plans net expense $ 28 $ 27 $ 24 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Recognition of Funded/(Underfunded) Status | Funded Status Qualified Plan Nonqualified and International Plans (millions) 2020 2019 2020 2019 Projected benefit obligations $ 4,594 $ 4,492 $ 74 $ 66 Fair value of plan assets 4,588 4,430 11 11 Funded / (underfunded) status $ (6) $ (62) $ (63) $ (55) |
Schedule of Estimated Future Benefit Payments | Estimated Future Benefit Payments (millions) Pension Benefits 2021 $ 280 2022 218 2023 226 2024 233 2025 239 2026 - 2030 1,279 |
Schedule of Net Pension Benefits Expense | Net Pension Benefits Expense (millions) Classification 2020 2019 2018 Service cost benefits earned SG&A Expenses $ 103 $ 93 $ 95 Interest cost on projected benefit obligation Net Other (Income) / Expense 118 149 146 Expected return on assets Net Other (Income) / Expense (242) (248) (246) Amortization of losses Net Other (Income) / Expense 127 62 82 Amortization of prior service cost Net Other (Income) / Expense (11) (11) (11) Settlement charges Net Other (Income) / Expense 1 1 4 Total $ 96 $ 46 $ 70 |
Schedule of Benefit Obligation Weighted Average Assumptions | Benefit Obligation Weighted Average Assumptions 2020 2019 Discount rate 2.84 % 3.13 % Average assumed rate of compensation increase 3.00 3.00 Cash balance plan interest crediting rate 4.64 4.64 |
Schedule of Net Periodic Benefit Expense Weighted Average Assumptions | Net Periodic Benefit Expense Weighted Average Assumptions 2020 2019 2018 Discount rate 3.13 % 4.28 % 3.93 % Expected long-term rate of return on plan assets 6.10 6.30 6.30 Average assumed rate of compensation increase 3.00 3.00 3.00 Cash balance plan interest crediting rate 4.64 4.64 4.64 |
Schedule of Change in Projected Benefit Obligation | Change in Projected Benefit Obligation Qualified Plan Nonqualified and International Plans (millions) 2020 2019 2020 2019 Benefit obligation at beginning of period $ 4,492 $ 3,905 $ 66 $ 53 Service cost 97 90 6 3 Interest cost 117 146 1 3 Actuarial loss (a) 144 615 7 11 Participant contributions 7 11 — — Benefits paid (263) (275) (6) (4) Benefit obligation at end of period (b) $ 4,594 $ 4,492 $ 74 $ 66 (a) 2020 and 2019 actuarial losses relate to the decreases in the weighted average discount rate. (b) Accumulated benefit obligation—the present value of benefits earned to date assuming no future salary growth—is materially consistent with the projected benefit obligation in each period presented. |
Schedule of Change in Plan Assets | Change in Plan Assets Qualified Plan Nonqualified and International Plans (millions) 2020 2019 2020 2019 Fair value of plan assets at beginning of period $ 4,430 $ 3,915 $ 11 $ 10 Actual return on plan assets 414 729 2 — Employer contributions — 50 4 5 Participant contributions 7 11 — — Benefits paid (263) (275) (6) (4) Fair value of plan assets at end of period $ 4,588 $ 4,430 $ 11 $ 11 |
Schedule of Asset Category | Asset Category Current Targeted Actual Allocation Allocation 2020 2019 Domestic equity securities (a) 15 % 16 % 14 % International equity securities 10 10 10 Debt securities 45 44 46 Diversified funds 25 25 25 Other (b) 5 5 5 Total 100 % 100 % 100 % (a) Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets in both periods presented. |
Schedule of Fair Value Measurements | Fair Value Measurements Fair Value at (millions) Pricing Category January 31, 2021 January 31, 2020 Cash and cash equivalents Level 1 $ 19 $ 12 Derivatives Level 2 (5) 18 Government securities (a) Level 2 516 604 Fixed income (b) Level 2 1,424 1,330 1,954 1,964 Investments valued using NAV per share (c) Fixed income 68 64 Private equity funds 73 75 Cash and cash equivalents 115 163 Common collective trusts 1,122 961 Diversified funds 1,165 1,109 Other 102 105 Total plan assets $ 4,599 $ 4,441 (a) Investments in government securities and long-term government bonds. (b) Investments in corporate and municipal bonds. (c) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Schedule of Amounts in Accumulated Other Comprehensive Income | Amounts in Accumulated Other Comprehensive Loss (millions) 2020 2019 Net actuarial loss $ 987 $ 1,138 Prior service credits (2) (13) Amounts in Accumulated Other Comprehensive Loss (a) $ 985 $ 1,125 (a) $735 million and $837 million, net of tax, at the end of 2020 and 2019, respectively. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Accumulated Other Comprehensive Income | Change in Accumulated Other Comprehensive Loss (millions) Cash Flow Currency Pension Total February 1, 2020 $ (12) $ (19) $ (837) $ (868) Other comprehensive income before reclassifications, net of tax 3 1 15 19 Amounts reclassified from AOCI, net of tax 6 (a) — 87 (b) 93 January 30, 2021 $ (3) $ (18) $ (735) $ (756) (a) Represents amortization of gains and losses on cash flow hedges, net of taxes, which is recorded in Net Interest Expense. (b) Represents amortization of pension gains and losses, net of $30 million of taxes, which is recorded in Net Other (Income)/Expense. See Note 24 for additional information. |
Coronavirus (COVID-19) (Details
Coronavirus (COVID-19) (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($)merchandiseCategory | |
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 | $ | $ 226 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 93,561 | $ 78,112 | $ 75,356 |
Sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 92,400 | 77,130 | 74,433 |
Apparel and accessories | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 14,772 | 14,304 | 13,434 |
Beauty and household essentials | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 24,461 | 20,616 | 19,296 |
Food and beverage | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 18,135 | 15,039 | 14,585 |
Hardlines | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 16,626 | 12,595 | 12,709 |
Home furnishings and decor | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 18,231 | 14,430 | 14,298 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 175 | 146 | 111 |
Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,161 | 982 | 923 |
Credit card profit sharing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 666 | 680 | 673 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 495 | $ 302 | $ 250 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Liability for estimated returns | $ 139 | $ 117 | $ 116 |
Percentage of sales accounted for as vendor sales to customers (as percent) | 5.00% | ||
Discount on purchases (as a percent) | 5.00% | ||
Discounts associated with REDcard rewards program | $ 1,100 | 962 | $ 953 |
Discount on purchase in Circle Program (as a percent) | 1.00% | ||
Deferred revenue related to loyalty program | $ 72 | $ 0 | |
National brand merchandise | |||
Disaggregation of Revenue [Line Items] | |||
Product return period | 90 days | ||
Exclusive brands | |||
Disaggregation of Revenue [Line Items] | |||
Product return period | 1 year |
Revenues - Gift Card Liability
Revenues - Gift Card Liability Activity (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
February 1, 2020 | $ 935 |
Gift Cards Issued During Current Period But Not Redeemed | 739 |
Revenue Recognized From Beginning Liability | (639) |
January 30, 2021 | $ 1,035 |
Advertising Costs (Details)
Advertising Costs (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Advertising Costs | |||
Net advertising costs | $ 1.5 | $ 1.6 | $ 1.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Assets | ||
Other Current Assets | $ 1,592 | $ 1,333 |
Other Noncurrent Assets | 1,386 | 1,358 |
Fair Value Measurements - Recurring Basis | Level 1 | Short-term Investments | ||
Assets | ||
Cash and Cash Equivalents | 7,644 | 1,810 |
Fair Value Measurements - Recurring Basis | Level 1 | Prepaid forward contracts | ||
Assets | ||
Other Current Assets | 38 | 23 |
Fair Value Measurements - Recurring Basis | Level 1 | Equity securities | ||
Assets | ||
Other Current Assets | 0 | 39 |
Fair Value Measurements - Recurring Basis | Level 2 | Interest rate swaps | ||
Assets | ||
Other Noncurrent Assets | $ 188 | $ 137 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 10,643 | $ 9,992 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 12,787 | $ 11,864 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Casper Sleep Inc. | ||
Marketable Securities [Line Items] | ||
Pretax gains (losses) recorded for equity securities investment | $ (19) | $ (41) |
Cash and Cash Equivalents - Nar
Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Cash and Cash Equivalents [Line Items] | ||
Credit and debit card transactions to be included in cash equivalents, maximum settlement period | 5 days | |
Accounts Payable | ||
Cash and Cash Equivalents [Line Items] | ||
Book overdrafts reclassified | $ 240 | $ 209 |
Accrued and Other Current Liabilities | ||
Cash and Cash Equivalents [Line Items] | ||
Book overdrafts reclassified | $ 24 | $ 23 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 307 | $ 326 |
Short-term investments | 7,644 | 1,810 |
Receivables from third-party financial institutions for credit and debit card transactions | 560 | 441 |
Cash and cash equivalents | $ 8,511 | $ 2,577 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Other Current Assets | ||
Accounts and other receivables | $ 631 | $ 498 |
Vendor income receivable | 504 | 464 |
Prepaid expenses | 171 | 154 |
Other | 286 | 217 |
Total | $ 1,592 | $ 1,333 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,500 | $ 2,600 | $ 2,500 |
Impairment losses | $ 62 | $ 23 | $ 92 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 8 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 39 years | ||
Fixtures and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Fixtures and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 15 years | ||
Computer hardware and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Computer hardware and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Other Noncurrent Assets (Detail
Other Noncurrent Assets (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Other Assets, Noncurrent [Abstract] | ||
Goodwill and intangible assets | $ 668 | $ 686 |
Company-owned life insurance investments, net of loans | 450 | 418 |
Other | 268 | 254 |
Total | $ 1,386 | $ 1,358 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 631,000,000 | $ 633,000,000 | |
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net intangible assets | $ 37 | $ 53 | |
Amortization expense | 15 | $ 13 | $ 14 |
Estimated Amortization Expense | |||
2021 | 15 | ||
2022 | 15 | ||
2023 | 15 | ||
2024 | 15 | ||
2025 | $ 15 | ||
Other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 4 years | ||
Other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 15 years | ||
Other | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 8 years |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Accrued and Other Current Liabilities | ||
Wages and benefits | $ 1,677 | $ 1,158 |
Real estate, sales, and other taxes payable | 1,103 | 601 |
Gift card liability, net of estimated breakage | 1,035 | 935 |
Income tax payable | 473 | 129 |
Dividends payable | 341 | 333 |
Current portion of operating lease liabilities | 211 | 200 |
Workers' compensation and general liability | 169 | 155 |
Interest payable | 79 | 69 |
Other | 1,034 | 826 |
Total | $ 6,122 | $ 4,406 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Loss Contingencies [Line Items] | ||
Letters of credit, outstanding | $ 2,000 | $ 1,500 |
Standby Letters of Credit and Surety Bonds | ||
Loss Contingencies [Line Items] | ||
Letters of credit, outstanding | 472 | 468 |
Purchase Obligations | ||
Loss Contingencies [Line Items] | ||
Purchase obligations | $ 785 | 676 |
Purchase obligation term | 3 years | |
Real Estate Obligations | ||
Loss Contingencies [Line Items] | ||
Real estate obligations | $ 2,100 | $ 1,400 |
Real estate obligation term | 5 years |
Commercial Paper and Long-Ter_3
Commercial Paper and Long-Term Debt - Schedule of Carrying Value and Maturities of Debt Portfolio (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 3.70% | |
Total notes and debentures | $ 10,643 | |
Swap valuation adjustments | 183 | |
Finance lease liabilities | 1,854 | |
Less: Amounts due within one year | (1,144) | $ (161) |
Long-term debt and other borrowings | $ 11,536 | $ 11,338 |
Due 2021-2025 | ||
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 3.00% | |
Total notes and debentures | $ 3,607 | |
Due 2026-2030 | ||
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 3.00% | |
Total notes and debentures | $ 3,392 | |
Due 2031-2035 | ||
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 6.60% | |
Total notes and debentures | $ 507 | |
Due 2036-2040 | ||
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 6.80% | |
Total notes and debentures | $ 936 | |
Due 2041-2045 | ||
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 4.00% | |
Total notes and debentures | $ 1,084 | |
Due 2046-2050 | ||
Notes Payable and Long-Term Debt | ||
Rate (as a percent) | 3.80% | |
Total notes and debentures | $ 1,117 |
Commercial Paper and Long-Ter_4
Commercial Paper and Long-Term Debt - Schedule of Required Principal Payments (Details) $ in Millions | Jan. 30, 2021USD ($) |
Required Principal Payments | |
2021 | $ 1,056 |
2022 | 63 |
2023 | 0 |
2024 | 1,000 |
2025 | $ 1,500 |
Commercial Paper and Long-Ter_5
Commercial Paper and Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2020 | Jan. 31, 2020 | Mar. 31, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||||||||
Gain (loss) on early retirement of debt | $ (512,000,000) | $ (10,000,000) | $ 0 | |||||
Balances outstanding | 0 | $ 0 | $ 0 | |||||
Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt repurchase face amount | $ 1,770,000,000 | |||||||
Debt repurchase amount paid | 2,250,000,000 | |||||||
Gain (loss) on early retirement of debt | $ (512,000,000) | |||||||
Unsecured Fixed Rate 2.250% Maturing 2025 | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured fixed rate debt | $ 1,500,000,000 | |||||||
Fixed interest rate (as percent) | 2.25% | |||||||
Unsecured Fixed Rate 2.650% Maturing 2030 | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured fixed rate debt | $ 1,000,000,000 | |||||||
Fixed interest rate (as percent) | 2.65% | |||||||
Unsecured Fixed Rate 2.35% Maturing 2021 | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured fixed rate debt | $ 750,000,000 | |||||||
Debt term | 10 years | |||||||
Fixed interest rate (as percent) | 2.35% | |||||||
Unsecured Fixed Rate 3.875% | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed interest rate (as percent) | 3.875% | |||||||
Debt repurchase face amount | $ 1,000,000,000 | |||||||
Gain (loss) on early retirement of debt | $ (10,000,000) | |||||||
Unsecured Fixed Rate 3.375% Maturing 2029 | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured fixed rate debt | $ 1,000,000,000 | |||||||
Debt term | 10 years | |||||||
Fixed interest rate (as percent) | 3.375% | |||||||
Unsecured Fixed Rate 2.3% Maturing June 2019 | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed interest rate (as percent) | 2.30% | |||||||
Debt repurchase amount paid | $ 1,000,000,000 | |||||||
Credit Facility Expiring October 2023 | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility | $ 2,500,000,000 |
Commercial Paper and Long-Ter_6
Commercial Paper and Long-Term Debt - Schedule of Commercial Paper (Details) - Commercial Paper - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Short-term Debt [Line Items] | |||
Maximum daily amount outstanding during the year | $ 0 | $ 744 | $ 658 |
Average amount outstanding during the year | 0 | 41 | 63 |
Amount outstanding at year-end | $ 0 | $ 0 | $ 0 |
Weighted average interest rate (as a percent) | 0.00% | 2.36% | 2.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - Designated - USD ($) | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Interest Rate Swap | ||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||
Weighted average fixed rate (as percent) | 2.60% | |
Average remaining maturity | 6 years 10 months 24 days | |
Notional amount | $ 1,500,000,000 | $ 1,500,000,000 |
Forward Starting Interest Rate Swap | ||
Derivative Contracts - Types, Statements of Financial Position Classification and Fair Values | ||
Notional amount | 250,000,000 | |
Gain to be reclassified | $ 5,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Effect of Hedges On Debt (Details) - Long-term debt and other borrowings - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of hedged debt | $ 1,677 | $ 1,630 |
Cumulative hedging adjustments, included in carrying amount | $ 183 | $ 137 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Interest rate swap designated as fair value hedges | $ 46 | $ 130 | $ 13 |
Hedged debt | (46) | (130) | (13) |
Total | $ 0 | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jan. 30, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, renewal term | 1 year |
Operating lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, renewal term | 50 years |
Operating lease, renewal term | 50 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
Operating lease assets | $ 2,227 | $ 2,236 |
Finance lease assets | 1,504 | 1,180 |
Total leased assets | 3,731 | 3,416 |
Liabilities, Current | ||
Operating | 211 | 200 |
Finance | 88 | 67 |
Liabilities, noncurrent | ||
Operating | 2,218 | 2,275 |
Finance | 1,766 | 1,303 |
Total lease liabilities | $ 4,283 | $ 3,845 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance lease assets, accumulated amortization | $ 550 | $ 441 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 332 | $ 287 | $ 251 |
Amortization of leased assets | 105 | 82 | 65 |
Interest on lease liabilities | 62 | 51 | 42 |
Sublease income | (15) | (13) | (11) |
Net lease cost | 484 | 407 | 347 |
Short-term and variable lease costs | 44 | 0 | 0 |
Rental income on owned properties | $ 48 | $ 48 | $ 47 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Millions | Jan. 30, 2021USD ($) |
Operating Leases | |
2021 | $ 289 |
2022 | 290 |
2023 | 283 |
2024 | 269 |
2025 | 256 |
After 2025 | 1,694 |
Total lease payments | 3,081 |
Less: Interest | 652 |
Present value of lease liabilities | 2,429 |
Finance Leases | |
2021 | 152 |
2022 | 159 |
2023 | 158 |
2024 | 155 |
2025 | 154 |
After 2025 | 1,687 |
Total lease payments | 2,465 |
Less: Interest | 611 |
Present value of lease liabilities | 1,854 |
Operating lease option to extend reasonably certain of being exercised | 847 |
Operating lease legally binding minimum payments for leases that have not yet commenced | 231 |
Financing lease option to extend reasonably certain of being exercised | 160 |
Financing lease legally binding minimum payments for leases that have not yet commenced | 1,100 |
Total | |
2021 | 441 |
2022 | 449 |
2023 | 441 |
2024 | 424 |
2025 | 410 |
After 2025 | 3,381 |
Total lease payments | $ 5,546 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
Weighted average remaining lease term (years) | ||
Operating leases | 12 years 7 months 6 days | 13 years 2 months 12 days |
Finance leases | 15 years 9 months 18 days | 15 years 4 months 24 days |
Weighted average discount rate | ||
Operating leases | 3.54% | 3.71% |
Finance leases | 3.68% | 4.23% |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 284 | $ 254 | $ 231 |
Operating cash flows from finance leases | 59 | 49 | 45 |
Financing cash flows from finance leases | $ 70 | $ 57 | $ 80 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Earnings from continuing operations before income taxes | $ 5,546 | $ 4,190 | $ 3,676 | |
Amount earned by foreign entities subject to tax | 764 | 653 | 565 | |
Unrecognized tax benefits that would impact effective tax rates | 99 | |||
Unrecognized tax benefits reserve | 181 | 160 | 300 | $ 325 |
Net expense (benefit) from accrued penalties and interest | (12) | (2) | 3 | |
Total accrued interest and penalties | $ 12 | $ 27 | $ 32 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Rate Reconciliation - Continuing Operations (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of the federal tax benefit | 3.30% | 3.70% | 3.60% |
International | (1.20%) | (1.40%) | (1.30%) |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Percent | 0 | 0 | (0.010) |
Excess tax benefit related to share-based payments | (1.00%) | (0.40%) | (0.30%) |
Federal tax credits | (0.60%) | (0.80%) | (1.10%) |
Other | (0.30%) | (0.10%) | (0.60%) |
Effective tax rate | 21.20% | 22.00% | 20.30% |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Current: | |||
Federal | $ 1,013 | $ 536 | $ 257 |
State | 281 | 169 | 116 |
International | 68 | 38 | 51 |
Total current | 1,362 | 743 | 424 |
Deferred: | |||
Federal | (118) | 150 | 263 |
State | (64) | 29 | 57 |
International | (2) | (1) | 2 |
Total deferred | (184) | 178 | 322 |
Total provision | $ 1,178 | $ 921 | $ 746 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Asset/(Liability) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Gross deferred tax assets: | ||
Accrued and deferred compensation | $ 623 | $ 286 |
Accruals and reserves not currently deductible | 192 | 147 |
Self-insured benefits | 138 | 124 |
Deferred occupancy income | 141 | 148 |
Lease liabilities | 1,108 | 1,000 |
Other | 55 | 58 |
Total gross deferred tax assets | 2,257 | 1,763 |
Gross deferred tax liabilities: | ||
Property and equipment | (2,003) | (1,767) |
Leased assets | (996) | (880) |
Inventory | (146) | (156) |
Other | (82) | (74) |
Total gross deferred tax liabilities | (3,227) | (2,877) |
Total net deferred tax liability | $ (970) | $ (1,114) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Liability for Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Reconciliation of Liability for Unrecognized Tax Benefits | |||
Beginning balance | $ 160 | $ 300 | $ 325 |
Additions based on tax positions related to the current year | 35 | 28 | 58 |
Additions for tax positions of prior years | 32 | 13 | 10 |
Reductions for tax positions of prior years | (36) | (69) | (91) |
Settlements | (10) | (112) | (2) |
Ending balance | $ 181 | $ 160 | $ 300 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation | $ 549 | $ 493 |
Deferred occupancy income | 509 | 539 |
Income and other taxes payable | 436 | 194 |
Workers' compensation and general liability | 341 | 310 |
Pension benefits | 57 | 107 |
Other | 47 | 81 |
Total | $ 1,939 | $ 1,724 |
Share Repurchase (Details)
Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Equity [Abstract] | |||
Total number of shares purchased (in shares) | 5.7 | 16 | 27.2 |
Average price paid per share (in dollars per share) | $ 107.58 | $ 95.07 | $ 75.88 |
Total investment | $ 609 | $ 1,518 | $ 2,067 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unissued common shares reserved for future grants (in shares) | 35.3 | ||
Total share-based compensation expense | $ 210,000,000 | $ 152,000,000 | $ 134,000,000 |
Related income tax benefit | 39,000,000 | $ 27,000,000 | $ 26,000,000 |
Future maximum compensation expense | 112,000,000 | ||
Unrecognized compensation expense related to stock options | $ 0 | ||
Weighted-average remaining life of currently exercisable options | 2 years 2 months 12 days | ||
Weighted-average remaining life of currently outstanding options | 2 years 2 months 12 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Grant date weighted average fair value (in dollars per share) | $ 110.80 | $ 80.01 | $ 72.65 |
Unrecognized compensation expenses | $ 179,000,000 | ||
Period for the unrecognized expense to be recognized | 2 years 6 months | ||
Fair value of shares vested | $ 151,000,000 | $ 89,000,000 | $ 119,000,000 |
Restricted Stock Units | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Restricted Stock Units | Cliff Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Units | Graduated Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Performance Share Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Grant date weighted average fair value (in dollars per share) | $ 106 | $ 86.81 | $ 70.94 |
Period for the unrecognized expense to be recognized | 1 year 8 months 12 days | ||
Fair value of shares vested | $ 82,000,000 | $ 50,000,000 | $ 43,000,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Activity and Performance Share Unit Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 4,316 | ||
Granted (in shares) | 1,833 | ||
Forfeited (in shares) | (358) | ||
Vested (in shares) | (1,427) | ||
Ending balance (in shares) | 4,364 | 4,316 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 72.93 | ||
Granted (in dollars per share) | 110.80 | $ 80.01 | $ 72.65 |
Forfeited (in dollars per share) | 80.65 | ||
Vested (in dollars per share) | 70.55 | ||
Ending balance (in dollars per share) | $ 88.99 | $ 72.93 | |
Number of outstanding units after applying actual or expected payout rates (in shares) | 4,330 | ||
Performance Share Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 3,575 | ||
Granted (in shares) | 786 | ||
Forfeited (in shares) | (746) | ||
Vested (in shares) | (827) | ||
Ending balance (in shares) | 2,788 | 3,575 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 72.80 | ||
Granted (in dollars per share) | 106 | $ 86.81 | $ 70.94 |
Forfeited (in dollars per share) | 77.73 | ||
Vested (in dollars per share) | 62.50 | ||
Ending balance (in dollars per share) | $ 87.93 | $ 72.80 | |
Number of outstanding units after applying actual or expected payout rates (in shares) | 2,130 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Stock Options Outstanding and Exercisable | ||
Beginning balance (in shares) | 2,478 | |
Granted (in shares) | 0 | |
Expired/ forfeited (in shares) | 0 | |
Exercised/issued (in shares) | (2,011) | |
Ending balance (in shares) | 467 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 55.72 | |
Granted (in dollars per share) | 0 | |
Expired/forfeited (in dollars per share) | 0 | |
Exercised/issued (in dollars per share) | 55.70 | |
Ending balance (in dollars per share) | $ 55.81 | |
Intrinsic value outstanding | $ 59 | $ 136 |
Number of options exercisable (in shares) | 467 | 714 |
Exercise price exercisable (in dollars per share) | $ 55.81 | $ 56.02 |
Intrinsic value exercisable | $ 59 | $ 39 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Stock Option Exercises (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Cash received for exercise price | $ 23 | $ 73 | $ 96 |
Intrinsic value | 161 | 59 | 50 |
Income tax benefit | $ 41 | $ 15 | $ 12 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021USD ($)individual | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | |
Defined Contribution Plans | |||
Maximum invested percentage of compensation by participants in defined contribution 401(k) plan | 80.00% | ||
Percentage match by company to team member's contribution | 100.00% | ||
Maximum employer contribution match, percentage of total compensation | 5.00% | ||
Unfunded nonqualified deferred compensation plan for members whose participation in 401(k) plan is limited, percent credited to accounts of active participants | 2.00% | ||
Nonqualified unfunded deferred compensation plan frozen in 1996, number of current active and retired participants (in number of individuals) | individual | 50 | ||
Total liability under the plans | $ 602 | $ 551 | |
Plan Expenses 401(k) plan | |||
401(k) plan matching contributions expense | 281 | 237 | $ 229 |
Nonqualified deferred compensation plans | |||
Benefits expense | 86 | 80 | 18 |
Related investment (income) / expense | (58) | (53) | 6 |
Nonqualified plans net expense | $ 28 | $ 27 | $ 24 |
Pension Plans - Schedule of Rec
Pension Plans - Schedule of Recognition of Funded/(Underfunded) Status (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,599 | $ 4,441 | |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligations | 4,594 | 4,492 | $ 3,905 |
Fair value of plan assets | 4,588 | 4,430 | 3,915 |
Funded / (underfunded) status | (6) | (62) | |
Nonqualified and International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligations | 74 | 66 | 53 |
Fair value of plan assets | 11 | 11 | $ 10 |
Funded / (underfunded) status | $ (63) | $ (55) |
Pension Plans - Schedule of Est
Pension Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Jan. 30, 2021USD ($) |
Estimated Future Benefit Payments | |
2021 | $ 280 |
2022 | 218 |
2023 | 226 |
2024 | 233 |
2025 | 239 |
2026-2030 | $ 1,279 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Pension Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |||
Service cost benefits earned | $ 103 | $ 93 | $ 95 |
Interest cost on projected benefit obligation | 118 | 149 | 146 |
Expected return on assets | (242) | (248) | (246) |
Amortization of losses | 127 | 62 | 82 |
Amortization of prior service cost | (11) | (11) | (11) |
Settlement charges | 1 | 1 | 4 |
Total | $ 96 | $ 46 | $ 70 |
Pension Plans - Schedule of Ben
Pension Plans - Schedule of Benefit Obligation Weighted Average Assumptions (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
Retirement Benefits [Abstract] | ||
Discount rate | 2.84% | 3.13% |
Average assumed rate of compensation increase | 3.00% | 3.00% |
Cash balance plan interest crediting rate | 4.64% | 4.64% |
Pension Plans - Schedule of N_2
Pension Plans - Schedule of Net Periodic Benefit Expense Weighted Average Assumptions (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.13% | 4.28% | 3.93% |
Expected long-term rate of return on plan assets | 6.10% | 6.30% | 6.30% |
Average assumed rate of compensation increase | 3.00% | 3.00% | 3.00% |
Cash balance plan interest crediting rate | 4.64% | 4.64% | 4.64% |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) | 12 Months Ended |
Jan. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual rate of return on qualified plan assets, period one | 10.20% |
Annual rate of return on qualified plan assets, period two | 9.00% |
Annual rate of return on qualified plan assets, period three | 7.60% |
Annual rate of return on qualified plan assets, period four | 7.00% |
Annual rate of return on qualified plan assets, period one | 5 years |
Annual rate of return on qualified plan assets, period two | 10 years |
Annual rate of return on qualified plan assets, period three | 15 years |
Annual rate of return on qualified plan assets, period four | 20 years |
Adjustment period | 5 years |
Domestic equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 7.00% |
International equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 7.50% |
Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 3.50% |
Balanced Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 7.00% |
Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Securities expected annualized rate of return (as percent) | 7.50% |
Pension Plans - Schedule of Cha
Pension Plans - Schedule of Change in Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $ 103 | $ 93 | $ 95 |
Interest cost | 118 | 149 | 146 |
Qualified Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 4,492 | 3,905 | |
Service cost | 97 | 90 | |
Interest cost | 117 | 146 | |
Actuarial loss | 144 | 615 | |
Participant contributions | 7 | 11 | |
Benefits paid | (263) | (275) | |
Benefit obligation at end of period | 4,594 | 4,492 | 3,905 |
Nonqualified and International Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 66 | 53 | |
Service cost | 6 | 3 | |
Interest cost | 1 | 3 | |
Actuarial loss | 7 | 11 | |
Participant contributions | 0 | 0 | |
Benefits paid | (6) | (4) | |
Benefit obligation at end of period | $ 74 | $ 66 | $ 53 |
Pension Plans - Schedule of C_2
Pension Plans - Schedule of Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 4,441 | |
Fair value of plan assets at end of period | 4,599 | $ 4,441 |
Qualified Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 4,430 | 3,915 |
Actual return on plan assets | 414 | 729 |
Employer contributions | 0 | 50 |
Participant contributions | 7 | 11 |
Benefits paid | (263) | (275) |
Fair value of plan assets at end of period | 4,588 | 4,430 |
Nonqualified and International Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 11 | 10 |
Actual return on plan assets | 2 | 0 |
Employer contributions | 4 | 5 |
Participant contributions | 0 | 0 |
Benefits paid | (6) | (4) |
Fair value of plan assets at end of period | $ 11 | $ 11 |
Pension Plans - Schedule of Ass
Pension Plans - Schedule of Asset Category (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 100.00% | |
Actual Allocation | 100.00% | 100.00% |
Domestic equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 15.00% | |
Actual Allocation | 16.00% | 14.00% |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 10.00% | |
Actual Allocation | 10.00% | 10.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 45.00% | |
Actual Allocation | 44.00% | 46.00% |
Diversified funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 25.00% | |
Actual Allocation | 25.00% | 25.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Targeted Allocation | 5.00% | |
Actual Allocation | 5.00% | 5.00% |
Equity securities, common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of total plan assets (less than) | 1.00% |
Pension Plans - Schedule of Fai
Pension Plans - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | $ 4,599 | $ 4,441 |
Fair value, Levels 1 and 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 1,954 | 1,964 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 19 | 12 |
Level 2 | Derivatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | (5) | 18 |
Level 2 | Government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 516 | 604 |
Level 2 | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 1,424 | 1,330 |
NAV | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 115 | 163 |
NAV | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 68 | 64 |
NAV | Private equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 73 | 75 |
NAV | Common collective trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 1,122 | 961 |
NAV | Diversified funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | 1,165 | 1,109 |
NAV | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets | $ 102 | $ 105 |
Pension Plans - Schedule of Amo
Pension Plans - Schedule of Amounts in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 987 | $ 1,138 |
Prior service credits | (2) | (13) |
Amounts in Accumulated Other Comprehensive Loss | 985 | 1,125 |
Amounts in AOCI, net of tax | $ 735 | $ 837 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 11,833 | $ 11,297 | $ 11,651 |
Other comprehensive income before reclassifications, net of tax | 19 | ||
Amounts reclassified from AOCI, net of tax | 93 | ||
Ending balance | 14,440 | 11,833 | 11,297 |
Provision for income taxes | 1,178 | 921 | 746 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (12) | ||
Other comprehensive income before reclassifications, net of tax | 3 | ||
Amounts reclassified from AOCI, net of tax | 6 | ||
Ending balance | (3) | (12) | |
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 | (18) | (19) | |
Pension | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (837) | ||
Other comprehensive income before reclassifications, net of tax | 15 | ||
Amounts reclassified from AOCI, net of tax | 87 | ||
Ending balance | (735) | (837) | |
Pension | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Provision for income taxes | 30 | ||
Accumulated Other Comprehensive (Loss) / Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (868) | (805) | (747) |
Ending balance | $ (756) | $ (868) | $ (805) |