Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 30, 2022 | Aug. 19, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-6049 | |
Entity Registrant Name | TARGET CORPORATION | |
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 $0.0833 per share | |
Trading Symbol | TGT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 460,262,630 | |
Entity Central Index Key | 0000027419 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Revenue | $ 26,037 | $ 25,160 | $ 51,207 | $ 49,357 |
Selling, general and administrative expenses | 5,002 | 4,849 | 9,764 | 9,358 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 572 | 564 | 1,173 | 1,162 |
Operating income | 321 | 2,467 | 1,667 | 4,841 |
Net interest expense | 112 | 104 | 224 | 212 |
Net other (income) / expense | (8) | (7) | (23) | (350) |
Earnings before income taxes | 217 | 2,370 | 1,466 | 4,979 |
Provision for income taxes | 34 | 553 | 274 | 1,065 |
Net earnings | $ 183 | $ 1,817 | $ 1,192 | $ 3,914 |
Basic earnings per share (in dollars per share) | $ 0.40 | $ 3.68 | $ 2.57 | $ 7.89 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 3.65 | $ 2.55 | $ 7.82 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 461.5 | 493.1 | 463.8 | 495.8 |
Diluted (in shares) | 463.6 | 497.5 | 466.8 | 500.4 |
Antidilutive shares (in shares) | 1.3 | 0 | 1 | 0 |
Sales | ||||
Revenue | $ 25,653 | $ 24,826 | $ 50,483 | $ 48,705 |
Cost of sales | 20,142 | 17,280 | 38,603 | 33,996 |
Other revenue | ||||
Revenue | $ 384 | $ 334 | $ 724 | $ 652 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 183 | $ 1,817 | $ 1,192 | $ 3,914 |
Other comprehensive income, net of tax | ||||
Pension benefit liabilities | 11 | 20 | 22 | 42 |
Cash flow hedges and currency translation adjustment | (28) | (8) | 162 | 1 |
Other comprehensive income | (17) | 12 | 184 | 43 |
Comprehensive income | $ 166 | $ 1,829 | $ 1,376 | $ 3,957 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Assets | |||
Cash and cash equivalents | $ 1,117 | $ 5,911 | $ 7,368 |
Inventory | 15,320 | 13,902 | 11,259 |
Other current assets | 2,016 | 1,760 | 1,604 |
Total current assets | 18,453 | 21,573 | 20,231 |
Property and equipment | |||
Land | 6,161 | 6,164 | 6,148 |
Buildings and improvements | 33,694 | 32,985 | 32,133 |
Fixtures and equipment | 6,744 | 6,407 | 5,892 |
Computer hardware and software | 2,684 | 2,505 | 2,260 |
Construction-in-progress | 2,245 | 1,257 | 944 |
Accumulated depreciation | (21,708) | (21,137) | (20,133) |
Property and equipment, net | 29,820 | 28,181 | 27,244 |
Operating lease assets | 2,542 | 2,556 | 2,503 |
Other noncurrent assets | 1,655 | 1,501 | 1,407 |
Total assets | 52,470 | 53,811 | 51,385 |
Liabilities and shareholders’ investment | |||
Accounts payable | 14,891 | 15,478 | 12,632 |
Accrued and other current liabilities | 5,905 | 6,098 | 5,600 |
Current portion of long-term debt and other borrowings | 1,649 | 171 | 1,190 |
Total current liabilities | 22,445 | 21,747 | 19,422 |
Long-term debt and other borrowings | 13,453 | 13,549 | 11,589 |
Noncurrent operating lease liabilities | 2,543 | 2,493 | 2,462 |
Deferred income taxes | 1,862 | 1,566 | 1,146 |
Other noncurrent liabilities | 1,575 | 1,629 | 1,906 |
Total noncurrent liabilities | 19,433 | 19,237 | 17,103 |
Shareholders’ investment | |||
Common stock | 38 | 39 | 41 |
Additional paid-in capital | 6,502 | 6,421 | 6,332 |
Retained earnings | 4,421 | 6,920 | 9,200 |
Accumulated other comprehensive loss | (369) | (553) | (713) |
Total shareholders’ investment | 10,592 | 12,827 | 14,860 |
Total liabilities and shareholders’ investment | $ 52,470 | $ 53,811 | $ 51,385 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
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) | 460,236,393 | 471,274,073 | 489,651,196 |
Common stock, shares outstanding (in shares) | 460,236,393 | 471,274,073 | 489,651,196 |
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. 30, 2022 | Jul. 31, 2021 | |
Operating activities | ||
Net earnings | $ 1,192 | $ 3,914 |
Adjustments to reconcile net earnings to cash (required for) provided by operating activities: | ||
Depreciation and amortization | 1,329 | 1,300 |
Share-based compensation expense | 122 | 138 |
Deferred income taxes | 227 | 143 |
Gain on Dermstore sale | 0 | (335) |
Noncash losses / (gains) and other, net | 108 | 7 |
Changes in operating accounts: | ||
Inventory | (1,418) | (606) |
Other assets | (179) | 3 |
Accounts payable | (784) | (311) |
Accrued and other liabilities | (644) | (831) |
Cash (required for) provided by operating activities | (47) | 3,422 |
Investing activities | ||
Expenditures for property and equipment | (2,523) | (1,338) |
Proceeds from disposal of property and equipment | 4 | 15 |
Proceeds from Dermstore sale | 0 | 356 |
Other investments | 1 | (5) |
Cash required for investing activities | (2,518) | (972) |
Financing activities | ||
Change in commercial paper, net | 1,545 | 0 |
Reductions of long-term debt | (113) | (72) |
Dividends paid | (842) | (676) |
Repurchase of stock | (2,821) | (2,850) |
Stock option exercises | 2 | 5 |
Cash required for financing activities | (2,229) | (3,593) |
Net decrease in cash and cash equivalents | (4,794) | (1,143) |
Cash and cash equivalents at beginning of period | 5,911 | 8,511 |
Cash and cash equivalents at end of period | 1,117 | 7,368 |
Supplemental information | ||
Leased assets obtained in exchange for new finance lease liabilities | 107 | 182 |
Leased assets obtained in exchange for new operating lease liabilities | $ 97 | $ 386 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 30, 2022 | Apr. 30, 2022 | Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance (in shares) | 471,274,073 | 489,651,196 | 471,274,073 | |||||
Beginning balance | $ 10,774 | $ 12,827 | $ 13,803 | $ 14,860 | $ 14,959 | $ 14,440 | $ 12,827 | $ 14,440 |
Net earnings | 183 | 1,009 | 1,544 | 1,488 | 1,817 | 2,097 | 1,192 | 3,914 |
Other comprehensive income | (17) | 201 | 134 | 26 | 12 | 31 | $ 184 | $ 43 |
Dividends declared | $ (502) | (426) | (428) | (439) | $ (445) | (343) | ||
Repurchase of stock (in shares) | (12,500,000) | (6,600,000) | (12,500,000) | (12,700,000) | ||||
Repurchase of stock | $ 114 | (10) | (2,266) | (2,181) | $ (1,544) | (1,208) | ||
Accelerated share repurchase pending final settlement (in shares) | (12,500,000) | |||||||
Accelerated share repurchase pending final settlement | (2,750) | |||||||
Stock options and awards | $ 40 | (77) | $ 40 | 49 | $ 61 | (58) | ||
Ending balance (in shares) | 460,236,393 | 471,274,073 | 489,651,196 | 460,236,393 | 489,651,196 | |||
Ending balance | $ 10,592 | $ 10,774 | $ 12,827 | $ 13,803 | $ 14,860 | $ 14,959 | $ 10,592 | $ 14,860 |
Common Stock | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance (in shares) | 463,700,000 | 471,300,000 | 480,900,000 | 489,700,000 | 496,100,000 | 500,900,000 | 471,300,000 | 500,900,000 |
Beginning balance | $ 39 | $ 39 | $ 40 | $ 41 | $ 41 | $ 42 | $ 39 | $ 42 |
Repurchase of stock (in shares) | (3,600,000) | (100,000) | (9,800,000) | (8,800,000) | (6,600,000) | (6,100,000) | ||
Repurchase of stock | $ (1) | $ (1) | $ (1) | $ (1) | ||||
Accelerated share repurchase pending final settlement (in shares) | (8,900,000) | |||||||
Accelerated share repurchase pending final settlement | $ (1) | |||||||
Stock options and awards (in shares) | 100,000 | 1,400,000 | 200,000 | 200,000 | 1,300,000 | |||
Stock options and awards | $ 1 | |||||||
Ending balance (in shares) | 460,200,000 | 463,700,000 | 471,300,000 | 480,900,000 | 489,700,000 | 496,100,000 | 460,200,000 | 489,700,000 |
Ending balance | $ 38 | $ 39 | $ 39 | $ 40 | $ 41 | $ 41 | $ 38 | $ 41 |
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance | 5,592 | 6,421 | 6,381 | 6,332 | 6,271 | 6,329 | 6,421 | 6,329 |
Repurchase of stock | 870 | |||||||
Accelerated share repurchase pending final settlement | (751) | |||||||
Stock options and awards | 40 | (78) | 40 | 49 | 61 | (58) | ||
Ending balance | 6,502 | 5,592 | 6,421 | 6,381 | 6,332 | 6,271 | 6,502 | 6,332 |
Retained Earnings | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance | 5,495 | 6,920 | 8,069 | 9,200 | 9,372 | 8,825 | 6,920 | 8,825 |
Net earnings | 183 | 1,009 | 1,544 | 1,488 | 1,817 | 2,097 | ||
Dividends declared | (502) | (426) | (428) | (439) | (445) | (343) | ||
Repurchase of stock | (755) | (10) | (2,265) | (2,180) | (1,544) | (1,207) | ||
Accelerated share repurchase pending final settlement | (1,998) | |||||||
Ending balance | 4,421 | 5,495 | 6,920 | 8,069 | 9,200 | 9,372 | 4,421 | 9,200 |
Accumulated Other Comprehensive (Loss)/Income | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance | (352) | (553) | (687) | (713) | (725) | (756) | (553) | (756) |
Other comprehensive income | (17) | 201 | 134 | 26 | 12 | 31 | ||
Ending balance | $ (369) | $ (352) | $ (553) | $ (687) | $ (713) | $ (725) | $ (369) | $ (713) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Jul. 30, 2022 | Jul. 31, 2021 | Jan. 29, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 1.08 | $ 0.90 | $ 3.38 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jul. 30, 2022 | |
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 2021 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. |
Dermstore Sale
Dermstore Sale | 6 Months Ended |
Jul. 30, 2022 | |
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 represented less than 1 percent of our consolidated revenues, operating income and net assets. |
Revenues
Revenues | 6 Months Ended |
Jul. 30, 2022 | |
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 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Apparel and accessories (a) $ 4,617 $ 4,751 $ 8,856 $ 9,020 Beauty and household essentials (b) 7,208 6,726 14,261 13,090 Food and beverage (c) 5,268 4,687 10,773 9,543 Hardlines (d) 3,866 3,867 7,579 7,813 Home furnishings and décor (e) 4,647 4,748 8,918 9,158 Other 47 47 96 81 Sales 25,653 24,826 50,483 48,705 Credit card profit sharing 181 172 366 343 Other 203 162 358 309 Other revenue 384 334 724 652 Total revenue $ 26,037 $ 25,160 $ 51,207 $ 49,357 (a) Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as jewelry, accessories, and shoes. (b) Includes beauty and personal care, baby gear, cleaning, paper products, and pet supplies. (c) Includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service in our stores. (d) Includes electronics (including video game hardware and software), toys, entertainment, sporting goods, and luggage. (e) Includes furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of July 30, 2022, January 29, 2022, and July 31, 2021, the accrual for estimated returns was $175 million, $165 million, and $176 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 29, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability July 30, (millions) Gift card liability (a) $ 1,202 $ 423 $ (660) $ 965 (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. Other — Includes advertising, Shipt membership and service revenues, commissions earned on third-party sales through Target.com, rental income, and other miscellaneous revenues. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements are reported in one of three levels reflecting the significant inputs used to determine fair value. Financial Instruments Measured On a Recurring Basis Fair Value (millions) Classification Measurement Level July 30, 2022 January 29, 2022 July 31, 2021 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 189 $ 4,985 $ 6,439 Prepaid forward contracts Other Current Assets Level 1 26 35 44 Interest rate swaps Other Current Assets Level 2 34 17 — Interest rate swaps Other Noncurrent Assets Level 2 290 135 160 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 6 — — Significant Financial Instruments Not Measured at Fair Value (a) (millions) July 30, 2022 January 29, 2022 July 31, 2021 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 11,511 $ 11,529 $ 11,568 $ 12,808 $ 10,620 $ 12,594 (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. 30, 2022 | |
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 $27 million and $50 million for the three and six months ended July 30, 2022, respectively. We recognized impairment charges of $39 million and $81 million for the three and six months ended July 31, 2021, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A). |
Commercial Paper and Long-Term
Commercial Paper and Long-Term Debt | 6 Months Ended |
Jul. 30, 2022 | |
Debt Disclosure [Abstract] | |
Commercial Paper and Long-Term Debt | Commercial Paper and Long-Term Debt We obtain short-term financing from time to time under our commercial paper program. For the six months ended July 30, 2022, the maximum amount outstanding was $1.5 billion, and the average daily amount outstanding was $538 million, at a weighted average annual interest rate of 1.1 percent. As of July 30, 2022, $1.5 billion was outstanding and is classified within Current Portion of Long-Term Debt and Other Borrowings on our Consolidated Statement of Financial Position. No balances were outstanding at any time during 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jul. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our derivative instruments consist of interest rate swaps used to mitigate interest rate risk. As a result, we have counterparty credit exposure to large global financial institutions, which we monitor on an ongoing basis. Note 4 to the Consolidated Financial Statements provides the fair value and classification of these instruments. We were party to interest rate swaps with notional amounts totaling $2.25 billion as of July 30, 2022, and $1.5 billion as of January 29, 2022, and July 31, 2021. 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 30, 2022, and July 31, 2021. We were party to forward-starting interest rate swaps with notional amounts totaling $2.15 billion as of July 30, 2022, and January 29, 2022, and $250 million as of July 31, 2021. 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 during the next three years. Based on the fair value of these swaps as of July 30, 2022, Accumulated Other Comprehensive Loss (AOCI) included an unrealized gain of $296 million. Any unrealized gain or loss at the time of debt issuance will be reclassified and impact Net Interest Expense as we record interest expense on the associated debt. Effect of Hedges on Debt (millions) July 30, 2022 January 29, 2022 July 31, 2021 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,263 $ 1,572 $ 1,649 Cumulative hedging adjustments, included in carrying amount 22 77 154 Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended (millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 49 $ 22 $ (55) $ (29) Hedged debt (49) (22) 55 29 Total $ — $ — $ — $ — |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended July 30, 2022 , our effective tax rate was 15.8 percent and 18.7 percent, respectively, compared with 23.4 percent and 21.4 percent for the three and six months ended July 31, 2021, respectively. For the three month period, the decrease reflects lower pretax earnings during the three months ended July 30, 2022, resulting in a larger tax rate benefit from ongoing and discrete tax items, compared with the prior year. For the six month period, the decrease reflects lower pretax earnings during the six months ended July 30, 2022, compared with the prior year, partially offset by the impacts of discrete tax benefits during the six months ended July 31, 2021, including the resolution of certain income tax matters. |
Share Repurchase
Share Repurchase | 6 Months Ended |
Jul. 30, 2022 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase We periodically repurchase shares of our common stock under a board-authorized repurchase program through a combination of open market transactions, accelerated share repurchase (ASR) arrangements, and other privately negotiated transactions with financial institutions. Share Repurchase Activity Three Months Ended Six Months Ended (millions, except per share data) July 31, 2022 (a) July 31, 2021 July 31, 2022 (a) July 31, 2021 Number of shares purchased 12.5 6.6 12.5 12.7 Average price paid per share $ 211.58 $ 233.81 $ 211.57 $ 213.06 Total investment $ 2,636 $ 1,535 $ 2,646 $ 2,700 (a) Includes activity related to the ASR arrangement entered in first quarter 2022 because final settlement occurred in second quarter 2022. Under the ASR arrangement, we repurchased 12.5 million shares for a total cash investment of $2.6 billion. We did not enter into any other ASR arrangements during the periods presented. |
Pension Benefits
Pension Benefits | 6 Months Ended |
Jul. 30, 2022 | |
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 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Service cost benefits earned SG&A $ 23 $ 24 $ 46 $ 48 Interest cost on projected benefit obligation Net Other (Income) / Expense 30 24 59 48 Expected return on assets Net Other (Income) / Expense (58) (59) (117) (118) Amortization of losses Net Other (Income) / Expense 15 28 30 57 Amortization of prior service cost Net Other (Income) / Expense 10 (1) 10 (1) Total $ 20 $ 16 $ 28 $ 34 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Change in Accumulated Other Comprehensive Income (Loss) Cash Flow Currency Translation Adjustment Pension Total (millions) January 29, 2022 $ 49 $ (19) $ (583) $ (553) Other comprehensive income (loss) before reclassifications, net of tax 163 (1) — 162 Amounts reclassified from AOCI, net of tax — — 22 22 July 30, 2022 $ 212 $ (20) $ (561) $ (369) |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jul. 30, 2022 | |
Accounting Policies [Abstract] | |
Revenues | Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. Credit card profit sharing — We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other — Includes advertising, Shipt membership and service revenues, commissions earned on third-party sales through Target.com, rental income, and other miscellaneous revenues. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | Revenues Three Months Ended Six Months Ended (millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Apparel and accessories (a) $ 4,617 $ 4,751 $ 8,856 $ 9,020 Beauty and household essentials (b) 7,208 6,726 14,261 13,090 Food and beverage (c) 5,268 4,687 10,773 9,543 Hardlines (d) 3,866 3,867 7,579 7,813 Home furnishings and décor (e) 4,647 4,748 8,918 9,158 Other 47 47 96 81 Sales 25,653 24,826 50,483 48,705 Credit card profit sharing 181 172 366 343 Other 203 162 358 309 Other revenue 384 334 724 652 Total revenue $ 26,037 $ 25,160 $ 51,207 $ 49,357 (a) Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as jewelry, accessories, and shoes. (b) Includes beauty and personal care, baby gear, cleaning, paper products, and pet supplies. (c) Includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service in our stores. (d) Includes electronics (including video game hardware and software), toys, entertainment, sporting goods, and luggage. (e) Includes furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. |
Schedule of Gift Card Liability | Gift Card Liability Activity January 29, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability July 30, (millions) Gift card liability (a) $ 1,202 $ 423 $ (660) $ 965 (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. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured On a Recurring Basis | Fair value measurements are reported in one of three levels reflecting the significant inputs used to determine fair value. Financial Instruments Measured On a Recurring Basis Fair Value (millions) Classification Measurement Level July 30, 2022 January 29, 2022 July 31, 2021 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 189 $ 4,985 $ 6,439 Prepaid forward contracts Other Current Assets Level 1 26 35 44 Interest rate swaps Other Current Assets Level 2 34 17 — Interest rate swaps Other Noncurrent Assets Level 2 290 135 160 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 6 — — |
Schedule of Significant Financial Instruments Not Measured at Fair Value | Significant Financial Instruments Not Measured at Fair Value (a) (millions) July 30, 2022 January 29, 2022 July 31, 2021 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 11,511 $ 11,529 $ 11,568 $ 12,808 $ 10,620 $ 12,594 (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. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effect of Hedges on Debt and Net Interest Expense | Effect of Hedges on Debt (millions) July 30, 2022 January 29, 2022 July 31, 2021 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,263 $ 1,572 $ 1,649 Cumulative hedging adjustments, included in carrying amount 22 77 154 Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended (millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ 49 $ 22 $ (55) $ (29) Hedged debt (49) (22) 55 29 Total $ — $ — $ — $ — |
Share Repurchase (Tables)
Share Repurchase (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity (excluding ASR) | Share Repurchase Activity Three Months Ended Six Months Ended (millions, except per share data) July 31, 2022 (a) July 31, 2021 July 31, 2022 (a) July 31, 2021 Number of shares purchased 12.5 6.6 12.5 12.7 Average price paid per share $ 211.58 $ 233.81 $ 211.57 $ 213.06 Total investment $ 2,636 $ 1,535 $ 2,646 $ 2,700 (a) Includes activity related to the ASR arrangement entered in first quarter 2022 because final settlement occurred in second quarter 2022. Under the ASR arrangement, we repurchased 12.5 million shares for a total cash investment of $2.6 billion. We did not enter into any other ASR arrangements during the periods presented. |
Pension Benefits (Tables)
Pension Benefits (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plan Benefits | Net Pension Benefits Expense Three Months Ended Six Months Ended (millions) Classification July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Service cost benefits earned SG&A $ 23 $ 24 $ 46 $ 48 Interest cost on projected benefit obligation Net Other (Income) / Expense 30 24 59 48 Expected return on assets Net Other (Income) / Expense (58) (59) (117) (118) Amortization of losses Net Other (Income) / Expense 15 28 30 57 Amortization of prior service cost Net Other (Income) / Expense 10 (1) 10 (1) Total $ 20 $ 16 $ 28 $ 34 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Loss | Change in Accumulated Other Comprehensive Income (Loss) Cash Flow Currency Translation Adjustment Pension Total (millions) January 29, 2022 $ 49 $ (19) $ (583) $ (553) Other comprehensive income (loss) before reclassifications, net of tax 163 (1) — 162 Amounts reclassified from AOCI, net of tax — — 22 22 July 30, 2022 $ 212 $ (20) $ (561) $ (369) |
Dermstore Sale (Details)
Dermstore Sale (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Dermstore sale | $ 0 | $ 356 | |
Gain on Dermstore sale | $ 0 | $ 335 | |
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. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 26,037 | $ 25,160 | $ 51,207 | $ 49,357 |
Apparel and accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,617 | 4,751 | 8,856 | 9,020 |
Beauty and household essentials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,208 | 6,726 | 14,261 | 13,090 |
Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,268 | 4,687 | 10,773 | 9,543 |
Hardlines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,866 | 3,867 | 7,579 | 7,813 |
Home furnishings and decor | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,647 | 4,748 | 8,918 | 9,158 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47 | 47 | 96 | 81 |
Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,653 | 24,826 | 50,483 | 48,705 |
Credit card profit sharing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 181 | 172 | 366 | 343 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 203 | 162 | 358 | 309 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 384 | $ 334 | $ 724 | $ 652 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Accrual for estimated returns | $ 175 | $ 165 | $ 176 |
Revenues - Gift Card Liability
Revenues - Gift Card Liability (Details) $ in Millions | 6 Months Ended |
Jul. 30, 2022 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 1,202 |
Gift Cards Issued During Current Period But Not Redeemed | 423 |
Revenue Recognized From Beginning Liability | (660) |
Ending balance | $ 965 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Assets | |||
Prepaid forward contracts and interest rate swaps classified as Other Current Assets | $ 2,016 | $ 1,760 | $ 1,604 |
Interest rate swaps classified as Other Noncurrent Assets | 1,655 | 1,501 | 1,407 |
Liabilities | |||
Interest rate swaps classified as Other Noncurrent Liabilities | 1,575 | 1,629 | 1,906 |
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | |||
Assets | |||
Prepaid forward contracts and interest rate swaps classified as Other Current Assets | 26 | 35 | 44 |
Fair value measured on recurring basis | Level 1 | Short-term investments | |||
Assets | |||
Short-term investments classified as Cash and Cash Equivalents | 189 | 4,985 | 6,439 |
Fair value measured on recurring basis | Level 2 | Interest rate swaps | |||
Assets | |||
Prepaid forward contracts and interest rate swaps classified as Other Current Assets | 34 | 17 | 0 |
Interest rate swaps classified as Other Noncurrent Assets | 290 | 135 | 160 |
Liabilities | |||
Interest rate swaps classified as Other Noncurrent Liabilities | $ 6 | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Carrying Amount | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 11,511 | $ 11,568 | $ 10,620 |
Fair Value | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 11,529 | $ 12,808 | $ 12,594 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Impairment charges | $ 27 | $ 39 | $ 50 | $ 81 |
Commercial Paper and Long-Ter_2
Commercial Paper and Long-Term Debt (Details) - USD ($) | 6 Months Ended | |
Jul. 30, 2022 | Jul. 31, 2021 | |
Debt Instrument [Line Items] | ||
Maximum amount outstanding during period | $ 1,500,000,000 | |
Average daily amount outstanding | $ 538,000,000 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.10% | |
Long-term debt, current maturity | $ 1,500,000,000 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Interest Rate Swaps | |||
Derivative Contracts - Effect on Results of Operations (millions) | |||
Notional amount | $ 2,250 | $ 1,500 | $ 1,500 |
Forward-Starting Interest Rate Swap | |||
Derivative Contracts - Effect on Results of Operations (millions) | |||
Notional amount | 2,150 | $ 2,150 | $ 250 |
Loss to be reclassified | $ 296 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Effect of Hedges on Debt (Details) - Long-term debt and other borrowings - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Carrying amount of hedged debt | $ 2,263 | $ 1,572 | $ 1,649 |
Cumulative hedging adjustments, included in carrying amount | $ 22 | $ 77 | $ 154 |
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. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Gain (loss) on fair value hedges recognized in Net Interest Expense | ||||
Interest rate swap designated as fair value hedges | $ 49 | $ 22 | $ (55) | $ (29) |
Hedged debt | (49) | (22) | 55 | 29 |
Total | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 15.80% | 23.40% | 18.70% | 21.40% |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Equity [Abstract] | ||||
Number of shares purchased (in shares) | 12.5 | 6.6 | 12.5 | 12.7 |
Average price paid per share (in dollars per share) | $ 211.58 | $ 233.81 | $ 211.57 | $ 213.06 |
Total investment | $ 2,636 | $ 1,535 | $ 2,646 | $ 2,700 |
Accelerated share repurchase pending final settlement (in shares) | 12.5 |
Pension Benefits (Details)
Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Net Pension Benefits Expense | ||||
Service cost benefits earned | $ 23 | $ 24 | $ 46 | $ 48 |
Interest cost on projected benefit obligation | 30 | 24 | 59 | 48 |
Expected return on assets | (58) | (59) | (117) | (118) |
Amortization of losses | 15 | 28 | 30 | 57 |
Amortization of prior service cost | 10 | (1) | 10 | (1) |
Total | $ 20 | $ 16 | $ 28 | $ 34 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 6 Months Ended |
Jul. 30, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 12,827 |
Ending balance | 10,592 |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 49 |
Other comprehensive income (loss) before reclassifications, net of tax | 163 |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | 212 |
Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (19) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | (20) |
Pension | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (583) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | 22 |
Ending balance | (561) |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (553) |
Other comprehensive income (loss) before reclassifications, net of tax | 162 |
Amounts reclassified from AOCI, net of tax | 22 |
Ending balance | $ (369) |