Target (TGT) 10-Q 28 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	May 01, 2021	May 21, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 1, 2021
Document Transition Report	false
Entity File Number	1-6049
Entity Registrant Name	TARGET CORP
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0215170
Entity Address, Address Line One	1000 Nicollet Mall
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55403
City Area Code	612
Local Phone Number	304-6073
Title of 12(b) Security	Common stock, par value $0.0833 per share
Trading Symbol	TGT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		494,723,834
Entity Central Index Key	0000027419
Amendment Flag	false
Current Fiscal Year End Date	--01-29
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Revenue	$ 24,197	$ 19,615
Selling, general and administrative expenses	4,509	4,060
Depreciation and amortization (exclusive of depreciation included in cost of sales)	598	577
Operating income	2,374	468
Net interest expense	108	117
Net other (income) / expense	(343)	22
Earnings before income taxes	2,609	329
Provision for income taxes	512	45
Net earnings	$ 2,097	$ 284
Basic earnings per share (in dollars per share)	$ 4.20	$ 0.57
Diluted earnings per share (in dollars per share)	$ 4.17	$ 0.56
Weighted average common shares outstanding
Basic (in shares)	498.6	501
Diluted (in shares)	503.4	505.8
Antidilutive shares (in shares)	0	0.2
Sales
Revenue	$ 23,879	$ 19,371
Cost of sales	16,716	14,510
Other revenue
Revenue	$ 318	$ 244

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 2,097	$ 284
Other comprehensive income / (loss), net of tax
Pension benefit liabilities	22	22
Currency translation adjustment and cash flow hedges	9	(8)
Other comprehensive income	31	14
Comprehensive income	$ 2,128	$ 298

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Assets
Cash and cash equivalents	$ 7,816	$ 8,511	$ 4,566
Inventory	10,539	10,653	8,584
Other current assets	1,576	1,592	1,465
Total current assets	19,931	20,756	14,615
Property and equipment
Land	6,146	6,141	6,034
Buildings and improvements	31,710	31,557	30,756
Fixtures and equipment	5,496	5,914	5,486
Computer hardware and software	2,256	2,765	2,597
Construction-in-progress	973	780	803
Accumulated depreciation	(19,777)	(20,278)	(19,087)
Property and equipment, net	26,804	26,879	26,589
Operating lease assets	2,362	2,227	2,235
Other noncurrent assets	1,374	1,386	1,367
Total assets	50,471	51,248	44,806
Liabilities and shareholders’ investment
Accounts payable	11,637	12,859	9,625
Accrued and other current liabilities	5,788	6,122	4,619
Current portion of long-term debt and other borrowings	1,173	1,144	168
Total current liabilities	18,598	20,125	14,412
Long-term debt and other borrowings	11,509	11,536	14,073
Noncurrent operating lease liabilities	2,337	2,218	2,249
Deferred income taxes	1,169	990	1,122
Other noncurrent liabilities	1,899	1,939	1,781
Total noncurrent liabilities	16,914	16,683	19,225
Shareholders’ investment
Common stock	41	42	42
Additional paid-in capital	6,271	6,329	6,206
Retained earnings	9,372	8,825	5,775
Accumulated other comprehensive loss	(725)	(756)	(854)
Total shareholders’ investment	14,959	14,440	11,169
Total liabilities and shareholders’ investment	$ 50,471	$ 51,248	$ 44,806

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	May 01, 2021	Jan. 30, 2021	May 02, 2020
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	6,000,000,000	6,000,000,000	6,000,000,000
Common stock, par value (in dollars per share)	$ 0.0833	$ 0.0833	$ 0.0833
Common stock, shares issued (in shares)	496,093,160	500,877,129	499,919,691
Common stock, shares outstanding (in shares)	496,093,160	500,877,129	499,919,691
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000	5,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	Jan. 30, 2021	Aug. 01, 2020	May 02, 2020
Operating activities
Net earnings	$ 2,097	$ 1,380	$ 1,690	$ 284
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	667			641
Share-based compensation expense	79			49
Deferred income taxes	170			(4)
Gain on Dermstore sale	(335)			0
Noncash losses / (gains) and other, net	(30)			5
Changes in operating accounts:
Inventory	114			408
Other assets	(5)			11
Accounts payable	(1,205)			(280)
Accrued and other liabilities	(413)			170
Cash provided by operating activities	1,139			1,284
Investing activities
Expenditures for property and equipment	(540)			(751)
Proceeds from disposal of property and equipment	12			6
Proceeds from Dermstore sale	356			0
Other investments	7			1
Cash required for investing activities	(165)			(744)
Financing activities
Additions to long-term debt	0			2,480
Reductions of long-term debt	(21)			(17)
Dividends paid	(340)			(332)
Repurchase of stock	(1,310)			(686)
Stock option exercises	2			4
Cash (required for) / provided by financing activities	(1,669)			1,449
Net (decrease) / increase in cash and cash equivalents	(695)			1,989
Cash and cash equivalents at beginning of period	8,511		$ 4,566	2,577
Cash and cash equivalents at end of period	7,816	$ 8,511		4,566
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	69			103
Leased assets obtained in exchange for new operating lease liabilities	$ 189			$ 97

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	Jan. 30, 2021	Oct. 31, 2020	Aug. 01, 2020	May 02, 2020
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	500,877,129			499,919,691
Beginning balance	$ 14,440	$ 13,319	$ 12,578	$ 11,169	$ 11,833
Net earnings	2,097	1,380	1,014	1,690	284
Other comprehensive income (loss)	31	41	36	21	14
Dividends declared	$ (343)	(344)	(346)	(344)	$ (333)
Repurchase of stock (in shares)	(6,100,000)				(5,700,000)
Repurchase of stock	$ (1,208)				$ (609)
Stock options and awards	$ (58)	$ 44	37	42	$ (20)
Ending balance (in shares)	496,093,160	500,877,129			499,919,691
Ending balance	$ 14,959	$ 14,440	$ 13,319	$ 12,578	$ 11,169
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	500,900,000	500,800,000	500,300,000	499,900,000	504,200,000
Beginning balance	$ 42	$ 42	$ 42	$ 42	$ 42
Repurchase of stock (in shares)	(6,100,000)				(5,700,000)
Repurchase of stock	$ (1)
Stock options and awards (in shares)	1,300,000	100,000	500,000	400,000	1,400,000
Ending balance (in shares)	496,100,000	500,900,000	500,800,000	500,300,000	499,900,000
Ending balance	$ 41	$ 42	$ 42	$ 42	$ 42
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,329	6,285	6,248	6,206	6,226
Stock options and awards	(58)	44	37	42	(20)
Ending balance	6,271	6,329	6,285	6,248	6,206
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	8,825	7,789	7,121	5,775	6,433
Net earnings	2,097	1,380	1,014	1,690	284
Dividends declared	(343)	(344)	(346)	(344)	(333)
Repurchase of stock	(1,207)				(609)
Ending balance	9,372	8,825	7,789	7,121	5,775
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(756)	(797)	(833)	(854)	(868)
Other comprehensive income (loss)	31	41	36	21	14
Ending balance	$ (725)	$ (756)	$ (797)	$ (833)	$ (854)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		12 Months Ended
	May 01, 2021	May 02, 2020	Jan. 30, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.68	$ 0.66	$ 2.70

Accounting Policies

Accounting Policies	3 Months Ended
	May 01, 2021
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies These unaudited condensed consolidated financial statements are prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (U.S. GAAP) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statement disclosures in our 2020 Form 10-K. We use the same accounting policies in preparing quarterly and annual financial statements. . We operate as a single segment that is designed to enable guests to purchase products seamlessly in stores or through our digital channels. Nearly all of our revenues are generated in the U.S. The vast majority of our long-lived assets are located within the U.S. Due to the seasonal nature of our business, quarterly revenues, expenses, earnings, and cash flows are not necessarily indicative of the results that may be expected for the full year.

Coronavirus (COVID-19)

Coronavirus (COVID-19)	3 Months Ended
	May 01, 2021
Unusual or Infrequent Items, or Both [Abstract]
Coronavirus (COVID-19)	Coronavirus (COVID-19) The novel coronavirus (COVID-19) pandemic continues to evolve. In 2020, states and cities took 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. As the COVID-19 pandemic has evolved, we have experienced significant volatility in our sales category mix. Note 4 presents sales by category. Since the pandemic started in March 2020, we took various actions, including accelerating purchases of certain merchandise in our core categories and slowing or canceling purchase orders, primarily for Apparel and Accessories. As a result, during the quarter ended May 2, 2020, we recorded $216 million of purchase order cancellation fees in Cost of Sales.

Dermstore Sale

Dermstore Sale	3 Months Ended
	May 01, 2021
Discontinued Operations and Disposal Groups [Abstract]
Dermstore Sale	Dermstore SaleIn February 2021, we sold our wholly owned subsidiary Dermstore LLC (Dermstore) for $356 million in cash and recognized a $335 million pretax gain, which is included in Net Other (Income) / Expense. Dermstore has historically represented less than 1 percent of our consolidated revenues, operating income and net assets.

Revenues

Revenues	3 Months Ended
	May 01, 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 Three Months Ended (millions) May 1, 2021 May 2, 2020 Apparel and accessories (a) $ 4,269 $ 2,619 Beauty and household essentials (b) 6,364 5,911 Food and beverage (c) 4,856 4,575 Hardlines (d) 3,946 2,974 Home furnishings and décor (e) 4,410 3,264 Other 34 28 Sales 23,879 19,371 Credit card profit sharing 171 166 Other 147 78 Other revenue 318 244 Total revenue $ 24,197 $ 19,615 (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 and office supplies, greeting cards and party supplies, and other seasonal merchandise. Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns. As of May 1, 2021, January 30, 2021, and May 2, 2020, the accrual for estimated returns was $196 million, $139 million, and $398 million, respectively. The accrual as of May 2, 2020, reflects the impact of the suspension of in-store merchandise returns and exchanges from March 26, 2020, to April 26, 2020, due to the COVID-19 pandemic. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Gift Card Liability Activity January 30, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability May 1, (millions) Gift card liability (a) $ 1,035 $ 234 $ (374) $ 895 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage. Credit card profit sharing — We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	May 01, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value measurements are reported in one of three levels reflecting the valuation techniques used to determine fair value. Financial Instruments Measured On a Recurring Basis Fair Value (millions) Classification Pricing Category May 1, 2021 January 30, 2021 May 2, 2020 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 6,895 $ 7,644 $ 3,605 Prepaid forward contracts Other Current Assets Level 1 37 38 23 Equity securities Other Current Assets Level 1 — — 18 Interest rate swaps Other Noncurrent Assets Level 2 149 188 228 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 — — 10 Significant Financial Instruments Not Measured at Fair Value (a) (millions) May 1, 2021 January 30, 2021 May 2, 2020 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,646 $ 12,335 $ 10,643 $ 12,787 $ 12,474 $ 14,781 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities.

Property and Equipment

Property and Equipment	3 Months Ended
	May 01, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and EquipmentWe review long-lived assets for impairment when store performance expectations, events, or changes in circumstances—such as a decision to relocate or close a store, office, 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 charges of $41 million and $35 million during the three months ended May 1, 2021, and May 2, 2020, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A).

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	May 01, 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 5 to the Consolidated Financial Statements provides the fair value and classification of these instruments. As of May 1, 2021, January 30, 2021, and May 2, 2020, we were party to interest rate swaps with notional amounts totaling $1.5 billion. We pay a floating rate and receive a fixed rate under each of these agreements. All of the agreements are designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during the three months ended May 1, 2021, and May 2, 2020. As of May 1, 2021, January 30, 2021, and May 2, 2020, we were party to forward-starting interest rate swaps with notional amounts totaling $250 million. We use these derivative financial instruments, which have been designated as cash flow hedges, to hedge the interest rate exposure of anticipated future debt issuances. As of May 1, 2021, Accumulated Other Comprehensive Loss (AOCI) included $17 million that will be reclassified and reduce Net Interest Expense when the forecasted transaction affects earnings. Effect of Hedges on Debt (millions) May 1, 2021 January 30, 2021 May 2, 2020 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,627 $ 1,677 $ 1,721 Cumulative hedging adjustments, included in carrying amount 132 183 228 Effect of Hedges on Net Interest Expense Three Months Ended (millions) May 1, 2021 May 2, 2020 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ (51) $ 91 Hedged debt 51 (91) Total $ — $ —

Income Taxes

Income Taxes	3 Months Ended
	May 01, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesFor the three months ended May 1, 2021, our effective tax rate was 19.6 percent compared with 13.9 percent for the three months ended May 2, 2020, as higher pretax earnings diluted the tax-rate benefit from fixed and discrete items, such as employee share-based compensation and the sale of Dermstore. Additionally, the favorable resolution of certain income tax matters resulted in a $44 million discrete tax benefit.

Share Repurchase

Share Repurchase	3 Months Ended
	May 01, 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 Three Months Ended (millions, except per share data) May 1, 2021 May 2, 2020 Number of shares purchased 6.1 5.7 Average price paid per share $ 190.77 $ 107.58 Total investment $ 1,165 $ 609

Pension Benefits

Pension Benefits	3 Months Ended
	May 01, 2021
Retirement Benefits [Abstract]
Pension Benefits	Pension Benefits We provide pension plan benefits to eligible team members. Net Pension Benefits Expense Three Months Ended (millions) Classification May 1, 2021 May 2, 2020 Service cost benefits earned SG&A $ 24 $ 26 Interest cost on projected benefit obligation Net Other (Income) / Expense 24 30 Expected return on assets Net Other (Income) / Expense (59) (61) Amortization of losses Net Other (Income) / Expense 29 32 Amortization of prior service cost Net Other (Income) / Expense — (3) Total $ 18 $ 24

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	May 01, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Change in Accumulated Other Comprehensive Loss Cash Flow Currency Translation Adjustment Pension Total (millions) January 30, 2021 $ (3) $ (18) $ (735) $ (756) Other comprehensive income before reclassifications, net of tax 9 — — 9 Amounts reclassified from AOCI, net of tax — — 22 22 May 1, 2021 $ 6 $ (18) $ (713) $ (725)

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	May 01, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenues Three Months Ended (millions) May 1, 2021 May 2, 2020 Apparel and accessories (a) $ 4,269 $ 2,619 Beauty and household essentials (b) 6,364 5,911 Food and beverage (c) 4,856 4,575 Hardlines (d) 3,946 2,974 Home furnishings and décor (e) 4,410 3,264 Other 34 28 Sales 23,879 19,371 Credit card profit sharing 171 166 Other 147 78 Other revenue 318 244 Total revenue $ 24,197 $ 19,615 (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 and office supplies, greeting cards and party supplies, and other seasonal merchandise.
Schedule of Gift Card Liability	Gift Card Liability Activity January 30, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability May 1, (millions) Gift card liability (a) $ 1,035 $ 234 $ (374) $ 895 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	May 01, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value Measurements - Recurring Basis	Fair value measurements are reported in one of three levels reflecting the valuation techniques used to determine fair value. Financial Instruments Measured On a Recurring Basis Fair Value (millions) Classification Pricing Category May 1, 2021 January 30, 2021 May 2, 2020 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 6,895 $ 7,644 $ 3,605 Prepaid forward contracts Other Current Assets Level 1 37 38 23 Equity securities Other Current Assets Level 1 — — 18 Interest rate swaps Other Noncurrent Assets Level 2 149 188 228 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 — — 10
Significant Financial Instruments Not Measured at Fair Value	Significant Financial Instruments Not Measured at Fair Value (a) (millions) May 1, 2021 January 30, 2021 May 2, 2020 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,646 $ 12,335 $ 10,643 $ 12,787 $ 12,474 $ 14,781 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	May 01, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives	Effect of Hedges on Debt (millions) May 1, 2021 January 30, 2021 May 2, 2020 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,627 $ 1,677 $ 1,721 Cumulative hedging adjustments, included in carrying amount 132 183 228 Effect of Hedges on Net Interest Expense Three Months Ended (millions) May 1, 2021 May 2, 2020 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ (51) $ 91 Hedged debt 51 (91) Total $ — $ —

Share Repurchase (Tables)

Share Repurchase (Tables)	3 Months Ended
	May 01, 2021
Equity [Abstract]
Schedule of Share Repurchase (excluding ASR)	Share Repurchase Activity Three Months Ended (millions, except per share data) May 1, 2021 May 2, 2020 Number of shares purchased 6.1 5.7 Average price paid per share $ 190.77 $ 107.58 Total investment $ 1,165 $ 609

Pension Benefits (Tables)

Pension Benefits (Tables)	3 Months Ended
	May 01, 2021
Retirement Benefits [Abstract]
Schedule of Pension Plan Benefits	Net Pension Benefits Expense Three Months Ended (millions) Classification May 1, 2021 May 2, 2020 Service cost benefits earned SG&A $ 24 $ 26 Interest cost on projected benefit obligation Net Other (Income) / Expense 24 30 Expected return on assets Net Other (Income) / Expense (59) (61) Amortization of losses Net Other (Income) / Expense 29 32 Amortization of prior service cost Net Other (Income) / Expense — (3) Total $ 18 $ 24

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	May 01, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of the Changes in Accumulated Other Comprehensive Loss	Change in Accumulated Other Comprehensive Loss Cash Flow Currency Translation Adjustment Pension Total (millions) January 30, 2021 $ (3) $ (18) $ (735) $ (756) Other comprehensive income before reclassifications, net of tax 9 — — 9 Amounts reclassified from AOCI, net of tax — — 22 22 May 1, 2021 $ 6 $ (18) $ (713) $ (725)

Coronavirus (COVID-19) (Details

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

Dermstore Sale (Details)

Dermstore Sale (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2021	May 01, 2021	May 02, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Dermstore sale		$ 356	$ 0
Gain on Dermstore sale		$ 335	$ 0
Dermstore | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Dermstore sale	$ 356
Gain on Dermstore sale	$ 335

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 24,197	$ 19,615
Apparel and accessories
Disaggregation of Revenue [Line Items]
Revenue	4,269	2,619
Beauty and household essentials
Disaggregation of Revenue [Line Items]
Revenue	6,364	5,911
Food and beverage
Disaggregation of Revenue [Line Items]
Revenue	4,856	4,575
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	3,946	2,974
Home furnishings and decor
Disaggregation of Revenue [Line Items]
Revenue	4,410	3,264
Other
Disaggregation of Revenue [Line Items]
Revenue	34	28
Sales
Disaggregation of Revenue [Line Items]
Revenue	23,879	19,371
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	171	166
Other
Disaggregation of Revenue [Line Items]
Revenue	147	78
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 318	$ 244

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Revenue from Contract with Customer [Abstract]
Reserve	$ 196	$ 139	$ 398

Revenues - Gift Card Liability

Revenues - Gift Card Liability (Details) $ in Millions	3 Months Ended
	May 01, 2021USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 1,035
Issued During Current Period But Not Redeemed	234
Revenue Recognized From Beginning Liability	(374)
Ending balance	$ 895

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Assets
Prepaid forward contracts classified as Other Current Assets	$ 1,576	$ 1,592	$ 1,465
Interest rate swaps classified as Other Noncurrent Assets	1,374	1,386	1,367
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	1,899	1,939	1,781
Fair value measured on recurring basis | Level 1 | Casper Sleep Inc.
Assets
Equity securities classified as Other Current Assets	0	0	18
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts classified as Other Current Assets	37	38	23
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	6,895	7,644	3,605
Fair value measured on recurring basis | Level 2 | Interest rate swaps
Assets
Interest rate swaps classified as Other Noncurrent Assets	149	188	228
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	$ 0	$ 0	$ 10

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 10,646	$ 10,643	$ 12,474
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 12,335	$ 12,787	$ 14,781

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Property, Plant and Equipment [Abstract]
Impairment charges	$ 41	$ 35

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - USD ($)	May 01, 2021	Jan. 30, 2021	May 02, 2020
Interest Rate Swaps
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 1,500,000,000	$ 1,500,000,000	$ 1,500,000,000
Forward-Starting Interest Rate Swap
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	250,000,000	$ 250,000,000	$ 250,000,000
Gain to be reclassified	$ 17,000,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Effect of Hedges on Debt (Details) - Long-term debt and other borrowings - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	$ 1,627	$ 1,677	$ 1,721
Cumulative hedging adjustments, included in carrying amount	$ 132	$ 183	$ 228

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate swap designated as fair value hedges	$ (51)	$ 91
Hedged debt	51	(91)
Total	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	19.60%	13.90%
Income tax benefit recognized in period	$ 44

Share Repurchase (Details)

Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Equity [Abstract]
Number of shares purchased (in shares)	6.1	5.7
Average price paid per share (in dollars per share)	$ 190.77	$ 107.58
Total investment	$ 1,165	$ 609

Pension Benefits (Details)

Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Net Pension Benefits Expense
Service cost benefits earned	$ 24	$ 26
Interest cost on projected benefit obligation	24	30
Expected return on assets	(59)	(61)
Amortization of losses	29	32
Amortization of prior service cost	0	(3)
Total	$ 18	$ 24

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Millions	3 Months Ended
	May 01, 2021USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 14,440
Other comprehensive income before reclassifications, net of tax	9
Amounts reclassified from AOCI, net of tax	22
Ending balance	14,959
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(3)
Other comprehensive income before reclassifications, net of tax	9
Amounts reclassified from AOCI, net of tax	0
Ending balance	6
Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(18)
Other comprehensive income before reclassifications, net of tax	0
Amounts reclassified from AOCI, net of tax	0
Ending balance	(18)
Pension
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(735)
Other comprehensive income before reclassifications, net of tax	0
Amounts reclassified from AOCI, net of tax	22
Ending balance	(713)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(756)
Ending balance	$ (725)