Target (TGT) 10-Q 23 Nov 22 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Oct. 29, 2022	Nov. 18, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 29, 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		460,310,088
Entity Central Index Key	0000027419
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Revenue	$ 26,518	$ 25,652	$ 77,725	$ 75,009
Cost of sales	19,680	18,206	58,283	52,202
Selling, general and administrative expenses	5,219	4,859	14,983	14,217
Depreciation and amortization (exclusive of depreciation included in cost of sales)	597	577	1,770	1,739
Operating income	1,022	2,010	2,689	6,851
Net interest expense	125	105	349	317
Net other (income) / expense	(12)	(6)	(35)	(356)
Earnings before income taxes	909	1,911	2,375	6,890
Provision for income taxes	197	423	471	1,488
Net earnings	$ 712	$ 1,488	$ 1,904	$ 5,402
Basic earnings per share (in dollars per share)	$ 1.55	$ 3.07	$ 4.11	$ 10.97
Diluted earnings per share (in dollars per share)	$ 1.54	$ 3.04	$ 4.09	$ 10.87
Weighted average common shares outstanding
Basic (in shares)	460.3	484.8	462.6	492.2
Diluted (in shares)	462.5	489.4	465.3	496.8
Antidilutive shares (in shares)	1.3	0	1.1	0
Sales
Revenue	$ 26,122	$ 25,290	$ 76,605	$ 73,995
Other revenue
Revenue	$ 396	$ 362	$ 1,120	$ 1,014

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Statement of Comprehensive Income [Abstract]
Net earnings	$ 712	$ 1,488	$ 1,904	$ 5,402
Other comprehensive income, net of tax
Pension benefit liabilities	11	21	33	63
Cash flow hedges and currency translation adjustment	150	5	312	6
Other comprehensive income	161	26	345	69
Comprehensive income	$ 873	$ 1,514	$ 2,249	$ 5,471

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Oct. 29, 2022	Jan. 29, 2022	Oct. 30, 2021
Assets
Cash and cash equivalents	$ 954	$ 5,911	$ 5,753
Inventory	17,117	13,902	14,958
Other current assets	2,322	1,760	1,865
Total current assets	20,393	21,573	22,576
Property and equipment
Land	6,214	6,164	6,146
Buildings and improvements	34,279	32,985	32,478
Fixtures and equipment	7,184	6,407	6,144
Computer hardware and software	2,899	2,505	2,447
Construction-in-progress	2,358	1,257	1,302
Accumulated depreciation	(22,013)	(21,137)	(20,602)
Property and equipment, net	30,921	28,181	27,915
Operating lease assets	2,596	2,556	2,539
Other noncurrent assets	1,705	1,501	1,381
Total assets	55,615	53,811	54,411
Liabilities and shareholders’ investment
Accounts payable	15,438	15,478	16,250
Accrued and other current liabilities	6,138	6,098	5,925
Current portion of long-term debt and other borrowings	2,207	171	1,176
Total current liabilities	23,783	21,747	23,351
Long-term debt and other borrowings	14,237	13,549	11,586
Noncurrent operating lease liabilities	2,590	2,493	2,494
Deferred income taxes	2,240	1,566	1,246
Other noncurrent liabilities	1,746	1,629	1,931
Total noncurrent liabilities	20,813	19,237	17,257
Shareholders’ investment
Common stock	38	39	40
Additional paid-in capital	6,558	6,421	6,381
Retained earnings	4,631	6,920	8,069
Accumulated other comprehensive loss	(208)	(553)	(687)
Total shareholders’ investment	11,019	12,827	13,803
Total liabilities and shareholders’ investment	$ 55,615	$ 53,811	$ 54,411

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Oct. 29, 2022	Jan. 29, 2022	Oct. 30, 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)	460,297,654	471,274,073	480,905,493
Common stock, shares outstanding (in shares)	460,297,654	471,274,073	480,905,493
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	9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021
Operating activities
Net earnings	$ 1,904	$ 5,402
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	2,004	1,952
Share-based compensation expense	177	187
Deferred income taxes	548	233
Gain on Dermstore sale	0	(335)
Noncash losses / (gains) and other, net	141	18
Changes in operating accounts:
Inventory	(3,215)	(4,305)
Other assets	(205)	(117)
Accounts payable	(224)	3,284
Accrued and other liabilities	(578)	(722)
Cash provided by operating activities	552	5,597
Investing activities
Expenditures for property and equipment	(4,323)	(2,483)
Proceeds from disposal of property and equipment	4	23
Proceeds from Dermstore sale	0	356
Other investments	16	14
Cash required for investing activities	(4,303)	(2,090)
Financing activities
Change in commercial paper, net	2,104	0
Additions to long-term debt	991	0
Reductions of long-term debt	(139)	(112)
Dividends paid	(1,339)	(1,116)
Repurchase of stock	(2,825)	(5,042)
Stock option exercises	2	5
Cash required for financing activities	(1,206)	(6,265)
Net decrease in cash and cash equivalents	(4,957)	(2,758)
Cash and cash equivalents at beginning of period	5,911	8,511
Cash and cash equivalents at end of period	954	5,753
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	116	234
Leased assets obtained in exchange for new operating lease liabilities	$ 203	$ 482

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended							9 Months Ended
	Oct. 29, 2022	Jul. 30, 2022	Apr. 30, 2022	Jan. 29, 2022	Oct. 30, 2021	Jul. 31, 2021	May 01, 2021	Oct. 29, 2022	Oct. 30, 2021
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)			471,274,073	480,905,493				471,274,073
Beginning balance	$ 10,592	$ 10,774	$ 12,827	$ 13,803	$ 14,860	$ 14,959	$ 14,440	$ 12,827	$ 14,440
Net earnings	712	183	1,009	1,544	1,488	1,817	2,097	1,904	5,402
Other comprehensive income	161	(17)	201	134	26	12	31	$ 345	$ 69
Dividends declared	$ (502)	(502)	(426)	(428)	$ (439)	(445)	(343)
Repurchase of stock (in shares)	0				(8,800,000)			(12,500,000)	(21,500,000)
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	$ 56	40	(77)	$ 40	$ 49	61	(58)
Ending balance (in shares)	460,297,654			471,274,073	480,905,493			460,297,654	480,905,493
Ending balance	$ 11,019	$ 10,592	$ 10,774	$ 12,827	$ 13,803	$ 14,860	$ 14,959	$ 11,019	$ 13,803
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	460,200,000	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	$ 38	$ 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	100,000	1,400,000	200,000		200,000	1,300,000
Stock options and awards			$ 1
Ending balance (in shares)	460,300,000	460,200,000	463,700,000	471,300,000	480,900,000	489,700,000	496,100,000	460,300,000	480,900,000
Ending balance	$ 38	$ 38	$ 39	$ 39	$ 40	$ 41	$ 41	$ 38	$ 40
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	6,502	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	56	40	(78)	40	49	61	(58)
Ending balance	6,558	6,502	5,592	6,421	6,381	6,332	6,271	6,558	6,381
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	4,421	5,495	6,920	8,069	9,200	9,372	8,825	6,920	8,825
Net earnings	712	183	1,009	1,544	1,488	1,817	2,097
Dividends declared	(502)	(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	4,631	4,421	5,495	6,920	8,069	9,200	9,372	4,631	8,069
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(369)	(352)	(553)	(687)	(713)	(725)	(756)	(553)	(756)
Other comprehensive income	161	(17)	201	134	26	12	31
Ending balance	$ (208)	$ (369)	$ (352)	$ (553)	$ (687)	$ (713)	$ (725)	$ (208)	$ (687)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		12 Months Ended
	Oct. 29, 2022	Oct. 30, 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	9 Months Ended
	Oct. 29, 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	9 Months Ended
	Oct. 29, 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	9 Months Ended
	Oct. 29, 2022
Revenue from Contract with Customer [Abstract]
Revenues	Revenues 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 Nine Months Ended (millions) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Apparel and accessories (a) $ 4,367 $ 4,364 $ 13,223 $ 13,384 Beauty and household essentials (b) 7,465 6,980 21,726 20,070 Food and beverage (c) 5,748 5,074 16,521 14,617 Hardlines (d) 3,665 3,841 11,244 11,654 Home furnishings and décor (e) 4,832 4,989 13,750 14,147 Other 45 42 141 123 Sales 26,122 25,290 76,605 73,995 Credit card profit sharing 184 184 550 527 Other 212 178 570 487 Other revenue 396 362 1,120 1,014 Total revenue $ 26,518 $ 25,652 $ 77,725 $ 75,009 (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 October 29, 2022, January 29, 2022, and October 30, 2021, the accrual for estimated returns was $209 million, $165 million, and $210 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 October 29, (millions) Gift card liability (a) $ 1,202 $ 533 $ (772) $ 963 (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	9 Months Ended
	Oct. 29, 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 October 29, 2022 January 29, 2022 October 30, 2021 Assets Short-term investments Cash and Cash Equivalents Level 1 $ — $ 4,985 $ 4,818 Prepaid forward contracts Other Current Assets Level 1 27 35 44 Interest rate swaps Other Current Assets Level 2 53 17 12 Interest rate swaps Other Noncurrent Assets Level 2 341 135 116 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 147 — — Significant Financial Instruments Not Measured at Fair Value (a) (millions) October 29, 2022 January 29, 2022 October 30, 2021 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 12,505 $ 11,291 $ 11,568 $ 12,808 $ 10,605 $ 12,300 (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	9 Months Ended
	Oct. 29, 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 $5 million and $55 million for the three and nine months ended October 29, 2022, respectively. We recognized impairment charges of $3 million and $84 million for the three and nine months ended October 30, 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	9 Months Ended
	Oct. 29, 2022
Debt Disclosure [Abstract]
Commercial Paper and Long-Term Debt	Commercial Paper and Long-Term Debt In September 2022, we issued unsecured fixed rate debt of $1.0 billion at 4.5 percent that matures in September 2032. In connection with this issuance, we terminated certain of our forward-starting interest rate swaps. Note 7 provides additional information. We obtain short-term financing from time to time under our commercial paper program. For the nine months ended October 29, 2022, the maximum amount outstanding was $2.1 billion, and the average daily amount outstanding was $713 million, at a weighted average annual interest rate of 1.91 percent. As of October 29, 2022, $2.1 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	9 Months Ended
	Oct. 29, 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 $2.45 billion as of October 29, 2022, and $1.50 billion as of January 29, 2022, and October 30, 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 nine months ended October 29, 2022, and October 30, 2021. We were party to forward-starting interest rate swaps with notional amounts totaling $1.45 billion as of October 29, 2022, $2.15 billion as of January 29, 2022, and $1.25 billion as of October 30, 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 two years. In September 2022, we terminated forward-starting interest rate swap agreements that hedged $700 million of the $1.0 billion debt issuance described in Note 6 . The resulting gain of $109 million was recorded in Accumulated Other Comprehensive Loss (AOCI) and will be recognized as a reduction to Net Interest Expense over the term of the debt. Based on the fair value of our remaining forward-starting interest rate swaps as of October 29, 2022, AOCI included an unrealized gain of $394 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) October 29, 2022 January 29, 2022 October 30, 2021 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,294 $ 1,572 $ 1,609 Cumulative hedging adjustments, included in carrying amount (146) 77 114 Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ (168) $ (40) $ (223) $ (69) Hedged debt 168 40 223 69 Total $ — $ — $ — $ —

Share Repurchase

Share Repurchase	9 Months Ended
	Oct. 29, 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. We did not repurchase any of our shares during the three months ended October 29, 2022. Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Number of shares purchased — 8.8 12.5 21.5 Average price paid per share $ — $ 246.80 $ 211.57 $ 226.93 Total investment $ — $ 2,184 $ 2,646 $ 4,884 During the first quarter of 2022, we entered into an ASR arrangement to repurchase up to $2.75 billion of our common stock. 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	9 Months Ended
	Oct. 29, 2022
Retirement Benefits [Abstract]
Pension Benefits	Pension Benefits We provide pension plan benefits to eligible team members. Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) Classification October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Service cost benefits earned SG&A $ 22 $ 25 $ 68 $ 73 Interest cost on projected benefit obligation Net Other (Income) / Expense 29 24 88 72 Expected return on assets Net Other (Income) / Expense (59) (60) (176) (178) Amortization of losses Net Other (Income) / Expense 16 28 46 85 Amortization of prior service cost Net Other (Income) / Expense — 2 10 1 Total $ 8 $ 19 $ 36 $ 53

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Oct. 29, 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 Hedges Currency Translation Adjustment Pension Total (millions) January 29, 2022 $ 49 $ (19) $ (583) $ (553) Other comprehensive income (loss) before reclassifications, net of tax 316 (3) — 313 Amounts reclassified from AOCI, net of tax (1) — 33 32 October 29, 2022 $ 364 $ (22) $ (550) $ (208)

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Oct. 29, 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)	9 Months Ended
	Oct. 29, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenues Three Months Ended Nine Months Ended (millions) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Apparel and accessories (a) $ 4,367 $ 4,364 $ 13,223 $ 13,384 Beauty and household essentials (b) 7,465 6,980 21,726 20,070 Food and beverage (c) 5,748 5,074 16,521 14,617 Hardlines (d) 3,665 3,841 11,244 11,654 Home furnishings and décor (e) 4,832 4,989 13,750 14,147 Other 45 42 141 123 Sales 26,122 25,290 76,605 73,995 Credit card profit sharing 184 184 550 527 Other 212 178 570 487 Other revenue 396 362 1,120 1,014 Total revenue $ 26,518 $ 25,652 $ 77,725 $ 75,009 (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 October 29, (millions) Gift card liability (a) $ 1,202 $ 533 $ (772) $ 963 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 29, 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 October 29, 2022 January 29, 2022 October 30, 2021 Assets Short-term investments Cash and Cash Equivalents Level 1 $ — $ 4,985 $ 4,818 Prepaid forward contracts Other Current Assets Level 1 27 35 44 Interest rate swaps Other Current Assets Level 2 53 17 12 Interest rate swaps Other Noncurrent Assets Level 2 341 135 116 Liabilities Interest rate swaps Other Noncurrent Liabilities Level 2 147 — —
Schedule of Significant Financial Instruments Not Measured at Fair Value	Significant Financial Instruments Not Measured at Fair Value (a) (millions) October 29, 2022 January 29, 2022 October 30, 2021 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 12,505 $ 11,291 $ 11,568 $ 12,808 $ 10,605 $ 12,300 (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)	9 Months Ended
	Oct. 29, 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) October 29, 2022 January 29, 2022 October 30, 2021 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,294 $ 1,572 $ 1,609 Cumulative hedging adjustments, included in carrying amount (146) 77 114 Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swap designated as fair value hedges $ (168) $ (40) $ (223) $ (69) Hedged debt 168 40 223 69 Total $ — $ — $ — $ —

Share Repurchase (Tables)

Share Repurchase (Tables)	9 Months Ended
	Oct. 29, 2022
Equity [Abstract]
Schedule of Share Repurchase Activity (excluding ASR)	Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Number of shares purchased — 8.8 12.5 21.5 Average price paid per share $ — $ 246.80 $ 211.57 $ 226.93 Total investment $ — $ 2,184 $ 2,646 $ 4,884

Pension Benefits (Tables)

Pension Benefits (Tables)	9 Months Ended
	Oct. 29, 2022
Retirement Benefits [Abstract]
Schedule of Pension Plan Benefits	Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) Classification October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 Service cost benefits earned SG&A $ 22 $ 25 $ 68 $ 73 Interest cost on projected benefit obligation Net Other (Income) / Expense 29 24 88 72 Expected return on assets Net Other (Income) / Expense (59) (60) (176) (178) Amortization of losses Net Other (Income) / Expense 16 28 46 85 Amortization of prior service cost Net Other (Income) / Expense — 2 10 1 Total $ 8 $ 19 $ 36 $ 53

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Oct. 29, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of the Changes in Accumulated Other Comprehensive Income (Loss)	Change in Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Currency Translation Adjustment Pension Total (millions) January 29, 2022 $ 49 $ (19) $ (583) $ (553) Other comprehensive income (loss) before reclassifications, net of tax 316 (3) — 313 Amounts reclassified from AOCI, net of tax (1) — 33 32 October 29, 2022 $ 364 $ (22) $ (550) $ (208)

Dermstore Sale (Details)

Dermstore Sale (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Feb. 28, 2021	Oct. 29, 2022	Oct. 30, 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		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 26,518	$ 25,652	$ 77,725	$ 75,009
Apparel and accessories
Disaggregation of Revenue [Line Items]
Revenue	4,367	4,364	13,223	13,384
Beauty and household essentials
Disaggregation of Revenue [Line Items]
Revenue	7,465	6,980	21,726	20,070
Food and beverage
Disaggregation of Revenue [Line Items]
Revenue	5,748	5,074	16,521	14,617
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	3,665	3,841	11,244	11,654
Home furnishings and decor
Disaggregation of Revenue [Line Items]
Revenue	4,832	4,989	13,750	14,147
Other
Disaggregation of Revenue [Line Items]
Revenue	45	42	141	123
Sales
Disaggregation of Revenue [Line Items]
Revenue	26,122	25,290	76,605	73,995
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	184	184	550	527
Other
Disaggregation of Revenue [Line Items]
Revenue	212	178	570	487
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 396	$ 362	$ 1,120	$ 1,014

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	Oct. 29, 2022	Jan. 29, 2022	Oct. 30, 2021
Revenue from Contract with Customer [Abstract]
Accrual for estimated returns	$ 209	$ 165	$ 210

Revenues - Gift Card Liability

Revenues - Gift Card Liability (Details) $ in Millions	9 Months Ended
	Oct. 29, 2022 USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 1,202
Gift Cards Issued During Current Period But Not Redeemed	533
Revenue Recognized From Beginning Liability	(772)
Ending balance	$ 963

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Oct. 29, 2022	Jan. 29, 2022	Oct. 30, 2021
Assets
Prepaid forward contracts and interest rate swaps classified as Other Current Assets	$ 2,322	$ 1,760	$ 1,865
Interest rate swaps classified as Other Noncurrent Assets	1,705	1,501	1,381
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	1,746	1,629	1,931
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts and interest rate swaps classified as Other Current Assets	27	35	44
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	0	4,985	4,818
Fair value measured on recurring basis | Level 2 | Interest rate swaps
Assets
Prepaid forward contracts and interest rate swaps classified as Other Current Assets	53	17	12
Interest rate swaps classified as Other Noncurrent Assets	341	135	116
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	$ 147	$ 0	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	Oct. 29, 2022	Jan. 29, 2022	Oct. 30, 2021
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 12,505	$ 11,568	$ 10,605
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 11,291	$ 12,808	$ 12,300

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Property, Plant and Equipment [Abstract]
Impairment charges	$ 5	$ 3	$ 55	$ 84

Commercial Paper and Long-Ter_2

Commercial Paper and Long-Term Debt (Details) - USD ($)	1 Months Ended	9 Months Ended
	Oct. 31, 2022	Oct. 29, 2022	Oct. 30, 2021	Sep. 30, 2022	Oct. 31, 2021
Debt Instrument [Line Items]
Maximum amount outstanding during period		$ 2,100,000,000
Average daily amount outstanding		713,000,000
Line of credit facility, outstanding balance		$ 0	$ 0
Unsecured Fixed Rate 4.5% Maturing 2032 | Unsecured Debt
Debt Instrument [Line Items]
Face amount				$ 1,000,000,000
Interest rate (percent)				4.50%
Credit Facility Expiring October 2027 | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity					$ 3,000,000,000
Commercial Paper
Debt Instrument [Line Items]
Weighted average interest rate		1.91%
Long-term debt, current maturity		$ 2,100,000,000	$ 0
Line of Credit | Credit Facility Expiring October 2023 | Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity	$ 1,000,000,000
Expiration period (in days)	364 days

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 29, 2022	Sep. 30, 2022	Jan. 29, 2022	Oct. 30, 2021
Unsecured Fixed Rate 4.5% Maturing 2032 | Unsecured Debt
Derivative Contracts - Effect on Results of Operations (millions)
Face amount		$ 1,000
Designated as Hedging Instrument | Interest Rate Swaps
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 2,450		$ 1,500	$ 1,500
Designated as Hedging Instrument | Forward-Starting Interest Rate Swap
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 1,450		$ 2,150	$ 1,250
Term of derivative (in years)	2 years
Derivative, amount of hedged item		$ 700
Gain to be reclassified	$ 109
Loss to be reclassified	$ 394

Derivative Financial Instrume_4

Derivative Financial Instruments - Effect of Hedges on Debt (Details) - Long-term debt and other borrowings - USD ($) $ in Millions	Oct. 29, 2022	Jan. 29, 2022	Oct. 30, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying amount of hedged debt	$ 2,294	$ 1,572	$ 1,609
Cumulative hedging adjustments, included in carrying amount	$ (146)	$ 77	$ 114

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swap designated as fair value hedges	$ (168)	$ (40)	$ (223)	$ (69)
Hedged debt	168	40	223	69
Total	$ 0	$ 0	$ 0	$ 0

Share Repurchase - Schedule of

Share Repurchase - Schedule of Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Equity [Abstract]
Number of shares purchased (in shares)	0	8.8	12.5	21.5
Average price paid per share (in dollars per share)	$ 0	$ 246.80	$ 211.57	$ 226.93
Total investment	$ 0	$ 2,184	$ 2,646	$ 4,884

Share Repurchase - Narrative (D

Share Repurchase - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021	Apr. 30, 2022
Equity [Abstract]
Authorized shares for accelerated stock repurchase, high end					$ 2,750
Accelerated share repurchase pending final settlement (in shares)			12.5
Total cash investment	$ 0	$ 2,184	$ 2,646	$ 4,884

Pension Benefits (Details)

Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
Net Pension Benefits Expense
Service cost benefits earned	$ 22	$ 25	$ 68	$ 73
Interest cost on projected benefit obligation	29	24	88	72
Expected return on assets	(59)	(60)	(176)	(178)
Amortization of losses	16	28	46	85
Amortization of prior service cost	0	2	10	1
Total	$ 8	$ 19	$ 36	$ 53

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions	9 Months Ended
	Oct. 29, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 12,827
Ending balance	11,019
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	316
Amounts reclassified from AOCI, net of tax	(1)
Ending balance	364
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	(3)
Amounts reclassified from AOCI, net of tax	0
Ending balance	(22)
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	33
Ending balance	(550)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(553)
Other comprehensive income (loss) before reclassifications, net of tax	313
Amounts reclassified from AOCI, net of tax	32
Ending balance	$ (208)