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) |