Target (TGT) 10-Q 27 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jul. 31, 2021	Aug. 20, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 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)		488,039,053
Entity Central Index Key	0000027419
Amendment Flag	false
Current Fiscal Year End Date	--01-29
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Revenue	$ 25,160	$ 22,975	$ 49,357	$ 42,590
Selling, general and administrative expenses	4,849	4,460	9,358	8,520
Depreciation and amortization (exclusive of depreciation included in cost of sales)	564	542	1,162	1,119
Operating income	2,467	2,300	4,841	2,768
Net interest expense	104	122	212	239
Net other (income) / expense	(7)	(11)	(350)	11
Earnings before income taxes	2,370	2,189	4,979	2,518
Provision for income taxes	553	499	1,065	544
Net earnings	$ 1,817	$ 1,690	$ 3,914	$ 1,974
Basic earnings per share (in dollars per share)	$ 3.68	$ 3.38	$ 7.89	$ 3.94
Diluted earnings per share (in dollars per share)	$ 3.65	$ 3.35	$ 7.82	$ 3.91
Weighted average common shares outstanding
Basic (in shares)	493.1	500.1	495.8	500.6
Diluted (in shares)	497.5	504.4	500.4	505.1
Antidilutive shares (in shares)	0	0	0	0
Sales
Revenue	$ 24,826	$ 22,696	$ 48,705	$ 42,067
Cost of sales	17,280	15,673	33,996	30,183
Other revenue
Revenue	$ 334	$ 279	$ 652	$ 523

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 1,817	$ 1,690	$ 3,914	$ 1,974
Other comprehensive income / (loss), net of tax
Pension benefit liabilities	20	22	42	44
Currency translation adjustment and cash flow hedges	(8)	(1)	1	(9)
Other comprehensive income	12	21	43	35
Comprehensive income	$ 1,829	$ 1,711	$ 3,957	$ 2,009

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 2020
Assets
Cash and cash equivalents	$ 7,368	$ 8,511	$ 7,284
Inventory	11,259	10,653	8,876
Other current assets	1,604	1,592	1,463
Total current assets	20,231	20,756	17,623
Property and equipment
Land	6,148	6,141	6,027
Buildings and improvements	32,133	31,557	30,946
Fixtures and equipment	5,892	5,914	5,665
Computer hardware and software	2,260	2,765	2,631
Construction-in-progress	944	780	811
Accumulated depreciation	(20,133)	(20,278)	(19,341)
Property and equipment, net	27,244	26,879	26,739
Operating lease assets	2,503	2,227	2,233
Other noncurrent assets	1,407	1,386	1,405
Total assets	51,385	51,248	48,000
Liabilities and shareholders’ investment
Accounts payable	12,632	12,859	10,726
Accrued and other current liabilities	5,600	6,122	5,057
Current portion of long-term debt and other borrowings	1,190	1,144	109
Total current liabilities	19,422	20,125	15,892
Long-term debt and other borrowings	11,589	11,536	14,188
Noncurrent operating lease liabilities	2,462	2,218	2,241
Deferred income taxes	1,146	990	1,121
Other noncurrent liabilities	1,906	1,939	1,980
Total noncurrent liabilities	17,103	16,683	19,530
Shareholders’ investment
Common stock	41	42	42
Additional paid-in capital	6,332	6,329	6,248
Retained earnings	9,200	8,825	7,121
Accumulated other comprehensive loss	(713)	(756)	(833)
Total shareholders’ investment	14,860	14,440	12,578
Total liabilities and shareholders’ investment	$ 51,385	$ 51,248	$ 48,000

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 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)	489,651,196	500,877,129	500,252,831
Common stock, shares outstanding (in shares)	489,651,196	500,877,129	500,252,831
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	6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020
Operating activities
Net earnings	$ 3,914	$ 1,974
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	1,300	1,245
Share-based compensation expense	138	104
Deferred income taxes	143	(12)
Gain on Dermstore sale	(335)	0
Noncash losses / (gains) and other, net	7	86
Changes in operating accounts:
Inventory	(606)	116
Other assets	3	(14)
Accounts payable	(311)	795
Accrued and other liabilities	(831)	822
Cash provided by operating activities	3,422	5,116
Investing activities
Expenditures for property and equipment	(1,338)	(1,414)
Proceeds from disposal of property and equipment	15	10
Proceeds from Dermstore sale	356	0
Other investments	(5)	2
Cash required for investing activities	(972)	(1,402)
Financing activities
Additions to long-term debt	0	2,480
Reductions of long-term debt	(72)	(126)
Dividends paid	(676)	(662)
Repurchase of stock	(2,850)	(706)
Stock option exercises	5	7
Cash (required for) / provided by financing activities	(3,593)	993
Net (decrease) / increase in cash and cash equivalents	(1,143)	4,707
Cash and cash equivalents at beginning of period	8,511	2,577
Cash and cash equivalents at end of period	7,368	7,284
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	182	246
Leased assets obtained in exchange for new operating lease liabilities	$ 386	$ 142

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended						6 Months Ended
	Jul. 31, 2021	May 01, 2021	Jan. 30, 2021	Oct. 31, 2020	Aug. 01, 2020	May 02, 2020	Jul. 31, 2021	Aug. 01, 2020
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)		500,877,129		500,252,831			500,877,129
Beginning balance	$ 14,959	$ 14,440	$ 13,319	$ 12,578	$ 11,169	$ 11,833	$ 14,440	$ 11,833
Net earnings	1,817	2,097	1,380	1,014	1,690	284	3,914	1,974
Other comprehensive income (loss)	12	31	41	36	21	14	$ 43	$ 35
Dividends declared	$ (445)	(343)	(344)	(346)	$ (344)	(333)
Repurchase of stock (in shares)	(6,600,000)				0		(12,700,000)	(5,700,000)
Repurchase of stock	$ (1,544)	(1,208)				(609)
Stock options and awards	$ 61	(58)	$ 44	37	$ 42	(20)
Ending balance (in shares)	489,651,196		500,877,129		500,252,831		489,651,196	500,252,831
Ending balance	$ 14,860	$ 14,959	$ 14,440	$ 13,319	$ 12,578	$ 11,169	$ 14,860	$ 12,578
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	496,100,000	500,900,000	500,800,000	500,300,000	499,900,000	504,200,000	500,900,000	504,200,000
Beginning balance	$ 41	$ 42	$ 42	$ 42	$ 42	$ 42	$ 42	$ 42
Repurchase of stock (in shares)	(6,600,000)	(6,100,000)				(5,700,000)
Repurchase of stock		$ (1)
Stock options and awards (in shares)	200,000	1,300,000	100,000	500,000	400,000	1,400,000
Ending balance (in shares)	489,700,000	496,100,000	500,900,000	500,800,000	500,300,000	499,900,000	489,700,000	500,300,000
Ending balance	$ 41	$ 41	$ 42	$ 42	$ 42	$ 42	$ 41	$ 42
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,271	6,329	6,285	6,248	6,206	6,226	6,329	6,226
Stock options and awards	61	(58)	44	37	42	(20)
Ending balance	6,332	6,271	6,329	6,285	6,248	6,206	6,332	6,248
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	9,372	8,825	7,789	7,121	5,775	6,433	8,825	6,433
Net earnings	1,817	2,097	1,380	1,014	1,690	284
Dividends declared	(445)	(343)	(344)	(346)	(344)	(333)
Repurchase of stock	(1,544)	(1,207)				(609)
Ending balance	9,200	9,372	8,825	7,789	7,121	5,775	9,200	7,121
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(725)	(756)	(797)	(833)	(854)	(868)	(756)	(868)
Other comprehensive income (loss)	12	31	41	36	21	14
Ending balance	$ (713)	$ (725)	$ (756)	$ (797)	$ (833)	$ (854)	$ (713)	$ (833)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended
	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 2020
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.90	$ 2.70	$ 0.68

Accounting Policies

Accounting Policies	6 Months Ended
	Jul. 31, 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)	6 Months Ended
	Jul. 31, 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. Since the onset of the COVID-19 pandemic, we have experienced strong comparable sales growth and significant volatility in our sales category and channel mix, including same-day fulfillment options. Note 4 presents sales by category. We have taken 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	6 Months Ended
	Jul. 31, 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	6 Months Ended
	Jul. 31, 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 Six Months Ended (millions) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Apparel and accessories (a) $ 4,751 $ 4,084 $ 9,020 $ 6,703 Beauty and household essentials (b) 6,726 6,158 13,090 12,069 Food and beverage (c) 4,687 4,186 9,543 8,761 Hardlines (d) 3,867 3,608 7,813 6,582 Home furnishings and décor (e) 4,748 4,625 9,158 7,889 Other 47 35 81 63 Sales 24,826 22,696 48,705 42,067 Credit card profit sharing 172 158 343 324 Other 162 121 309 199 Other revenue 334 279 652 523 Total revenue $ 25,160 $ 22,975 $ 49,357 $ 42,590 (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 July 31, 2021, January 30, 2021, and August 1, 2020, the accrual for estimated returns was $176 million, $139 million, and $201 million, respectively. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Gift Card Liability Activity January 30, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability July 31, (millions) Gift card liability (a) $ 1,035 $ 378 $ (533) $ 880 (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	6 Months Ended
	Jul. 31, 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 July 31, 2021 January 30, 2021 August 1, 2020 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 6,439 $ 7,644 $ 6,370 Prepaid forward contracts Other Current Assets Level 1 44 38 26 Equity securities Other Current Assets Level 1 — — 27 Interest rate swaps Other Noncurrent Assets Level 2 160 188 239 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 — — 12 Significant Financial Instruments Not Measured at Fair Value (a) (millions) July 31, 2021 January 30, 2021 August 1, 2020 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,620 $ 12,594 $ 10,643 $ 12,787 $ 12,384 $ 15,457 (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	6 Months Ended
	Jul. 31, 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 $39 million and $81 million during the three and six months ended July 31, 2021, respectively. We recognized impairment charges of $25 million and $60 million during the three and six months ended August 1, 2020, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A).

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jul. 31, 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 July 31, 2021, January 30, 2021, and August 1, 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 and six months ended July 31, 2021, and August 1, 2020. As of July 31, 2021, January 30, 2021, and August 1, 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 July 31, 2021, Accumulated Other Comprehensive Loss (AOCI) included $6 million that will be reclassified and reduce Net Interest Expense when the forecasted transaction affects earnings. During August 2021, we entered into additional forward-starting interest rate swaps with notional amounts totaling $675 million. Effect of Hedges on Debt (millions) July 31, 2021 January 30, 2021 August 1, 2020 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,649 $ 1,677 $ 1,732 Cumulative hedging adjustments, included in carrying amount 154 183 239 Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended (millions) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 22 $ 11 $ (29) $ 102 Hedged debt (22) (11) 29 (102) Total $ — $ — $ — $ —

Income Taxes

Income Taxes	6 Months Ended
	Jul. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three and six months ended July 31, 2021, our effective tax rate was 23.4 percent and 21.4 percent, respectively, compared with 22.8 percent and 21.6 percent for the three and six months ended August 1, 2020, as higher pretax earnings diluted the tax-rate benefit from fixed and discrete items, such as employee share-based compensation and the Dermstore sale. A dditionally, for the six months ended July 31, 2021, the favorable resolution of certain income tax matters resulted in a $44 million discrete tax benefit.

Share Repurchase

Share Repurchase	6 Months Ended
	Jul. 31, 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 Six Months Ended (millions, except per share data) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Number of shares purchased 6.6 — 12.7 5.7 Average price paid per share $ 233.81 $ — $ 213.06 $ 107.58 Total investment $ 1,535 $ — $ 2,700 $ 609

Pension Benefits

Pension Benefits	6 Months Ended
	Jul. 31, 2021
Retirement Benefits [Abstract]
Pension Benefits	Pension Benefits We provide pension plan benefits to eligible team members. Net Pension Benefits Expense Three Months Ended Six Months Ended (millions) Classification July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Service cost benefits earned SG&A $ 24 $ 25 $ 48 $ 51 Interest cost on projected benefit obligation Net Other (Income) / Expense 24 29 48 59 Expected return on assets Net Other (Income) / Expense (59) (60) (118) (121) Amortization of losses Net Other (Income) / Expense 28 32 57 64 Amortization of prior service cost Net Other (Income) / Expense (1) (3) (1) (6) Total $ 16 $ 23 $ 34 $ 47

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 31, 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 1 — — 1 Amounts reclassified from AOCI, net of tax — — 42 42 July 31, 2021 $ (2) $ (18) $ (693) $ (713)

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jul. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenues Three Months Ended Six Months Ended (millions) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Apparel and accessories (a) $ 4,751 $ 4,084 $ 9,020 $ 6,703 Beauty and household essentials (b) 6,726 6,158 13,090 12,069 Food and beverage (c) 4,687 4,186 9,543 8,761 Hardlines (d) 3,867 3,608 7,813 6,582 Home furnishings and décor (e) 4,748 4,625 9,158 7,889 Other 47 35 81 63 Sales 24,826 22,696 48,705 42,067 Credit card profit sharing 172 158 343 324 Other 162 121 309 199 Other revenue 334 279 652 523 Total revenue $ 25,160 $ 22,975 $ 49,357 $ 42,590 (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 July 31, (millions) Gift card liability (a) $ 1,035 $ 378 $ (533) $ 880 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 31, 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 July 31, 2021 January 30, 2021 August 1, 2020 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 6,439 $ 7,644 $ 6,370 Prepaid forward contracts Other Current Assets Level 1 44 38 26 Equity securities Other Current Assets Level 1 — — 27 Interest rate swaps Other Noncurrent Assets Level 2 160 188 239 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 — — 12
Significant Financial Instruments Not Measured at Fair Value	Significant Financial Instruments Not Measured at Fair Value (a) (millions) July 31, 2021 January 30, 2021 August 1, 2020 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 10,620 $ 12,594 $ 10,643 $ 12,787 $ 12,384 $ 15,457 (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)	6 Months Ended
	Jul. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives	Effect of Hedges on Debt (millions) July 31, 2021 January 30, 2021 August 1, 2020 Long-term debt and other borrowings Carrying amount of hedged debt $ 1,649 $ 1,677 $ 1,732 Cumulative hedging adjustments, included in carrying amount 154 183 239 Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended (millions) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 22 $ 11 $ (29) $ 102 Hedged debt (22) (11) 29 (102) Total $ — $ — $ — $ —

Share Repurchase (Tables)

Share Repurchase (Tables)	6 Months Ended
	Jul. 31, 2021
Equity [Abstract]
Schedule of Share Repurchase (excluding ASR)	Share Repurchase Activity Three Months Ended Six Months Ended (millions, except per share data) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Number of shares purchased 6.6 — 12.7 5.7 Average price paid per share $ 233.81 $ — $ 213.06 $ 107.58 Total investment $ 1,535 $ — $ 2,700 $ 609

Pension Benefits (Tables)

Pension Benefits (Tables)	6 Months Ended
	Jul. 31, 2021
Retirement Benefits [Abstract]
Schedule of Pension Plan Benefits	Net Pension Benefits Expense Three Months Ended Six Months Ended (millions) Classification July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Service cost benefits earned SG&A $ 24 $ 25 $ 48 $ 51 Interest cost on projected benefit obligation Net Other (Income) / Expense 24 29 48 59 Expected return on assets Net Other (Income) / Expense (59) (60) (118) (121) Amortization of losses Net Other (Income) / Expense 28 32 57 64 Amortization of prior service cost Net Other (Income) / Expense (1) (3) (1) (6) Total $ 16 $ 23 $ 34 $ 47

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 31, 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 1 — — 1 Amounts reclassified from AOCI, net of tax — — 42 42 July 31, 2021 $ (2) $ (18) $ (693) $ (713)

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	6 Months Ended
	Feb. 28, 2021	Jul. 31, 2021	Aug. 01, 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		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 25,160	$ 22,975	$ 49,357	$ 42,590
Apparel and accessories
Disaggregation of Revenue [Line Items]
Revenue	4,751	4,084	9,020	6,703
Beauty and household essentials
Disaggregation of Revenue [Line Items]
Revenue	6,726	6,158	13,090	12,069
Food and beverage
Disaggregation of Revenue [Line Items]
Revenue	4,687	4,186	9,543	8,761
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	3,867	3,608	7,813	6,582
Home furnishings and decor
Disaggregation of Revenue [Line Items]
Revenue	4,748	4,625	9,158	7,889
Other
Disaggregation of Revenue [Line Items]
Revenue	47	35	81	63
Sales
Disaggregation of Revenue [Line Items]
Revenue	24,826	22,696	48,705	42,067
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	172	158	343	324
Other
Disaggregation of Revenue [Line Items]
Revenue	162	121	309	199
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 334	$ 279	$ 652	$ 523

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 2020
Revenue from Contract with Customer [Abstract]
Reserve	$ 176	$ 139	$ 201

Revenues - Gift Card Liability

Revenues - Gift Card Liability (Details) $ in Millions	6 Months Ended
	Jul. 31, 2021USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 1,035
Gift Cards Issued During Current Period But Not Redeemed	378
Revenue Recognized From Beginning Liability	(533)
Ending balance	$ 880

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 2020
Assets
Prepaid forward contracts classified as Other Current Assets	$ 1,604	$ 1,592	$ 1,463
Interest rate swaps classified as Other Noncurrent Assets	1,407	1,386	1,405
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	1,906	1,939	1,980
Fair value measured on recurring basis | Level 1 | Casper Sleep Inc.
Assets
Equity securities classified as Other Current Assets	0	0	27
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts classified as Other Current Assets	44	38	26
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	6,439	7,644	6,370
Fair value measured on recurring basis | Level 2 | Interest rate swaps
Assets
Interest rate swaps classified as Other Noncurrent Assets	160	188	239
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	$ 0	$ 0	$ 12

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 2020
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 10,620	$ 10,643	$ 12,384
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 12,594	$ 12,787	$ 15,457

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Property, Plant and Equipment [Abstract]
Impairment charges	$ 39	$ 25	$ 81	$ 60

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - USD ($)	Aug. 27, 2021	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 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
Loss to be reclassified		$ 6,000,000
Forward-Starting Interest Rate Swap | Subsequent Event
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 675,000,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Effect of Hedges on Debt (Details) - Long-term debt and other borrowings - USD ($) $ in Millions	Jul. 31, 2021	Jan. 30, 2021	Aug. 01, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	$ 1,649	$ 1,677	$ 1,732
Cumulative hedging adjustments, included in carrying amount	$ 154	$ 183	$ 239

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swap designated as fair value hedges	$ 22	$ 11	$ (29)	$ 102
Hedged debt	(22)	(11)	29	(102)
Total	$ 0	$ 0	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	23.40%	22.80%	21.40%	21.60%
Discrete tax benefit			$ 44

Share Repurchase (Details)

Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Equity [Abstract]
Number of shares purchased (in shares)	6.6	0	12.7	5.7
Average price paid per share (in dollars per share)	$ 233.81	$ 0	$ 213.06	$ 107.58
Total investment	$ 1,535	$ 0	$ 2,700	$ 609

Pension Benefits (Details)

Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Net Pension Benefits Expense
Service cost benefits earned	$ 24	$ 25	$ 48	$ 51
Interest cost on projected benefit obligation	24	29	48	59
Expected return on assets	(59)	(60)	(118)	(121)
Amortization of losses	28	32	57	64
Amortization of prior service cost	(1)	(3)	(1)	(6)
Total	$ 16	$ 23	$ 34	$ 47

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Millions	6 Months Ended
	Jul. 31, 2021USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 14,440
Other comprehensive income before reclassifications, net of tax	1
Amounts reclassified from AOCI, net of tax	42
Ending balance	14,860
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(3)
Other comprehensive income before reclassifications, net of tax	1
Amounts reclassified from AOCI, net of tax	0
Ending balance	(2)
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	42
Ending balance	(693)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(756)
Ending balance	$ (713)