Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 28, 2023 | Nov. 17, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
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 $0.0833 per share | |
Trading Symbol | TGT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 461,661,800 | |
Entity Central Index Key | 0000027419 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-03 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Revenue | $ 25,398 | $ 26,518 | $ 75,493 | $ 77,725 |
Cost of sales | 18,149 | 19,680 | 54,333 | 58,283 |
Selling, general and administrative expenses | 5,316 | 5,219 | 15,525 | 14,983 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 616 | 597 | 1,793 | 1,770 |
Operating income | 1,317 | 1,022 | 3,842 | 2,689 |
Net interest expense | 107 | 125 | 395 | 349 |
Net other income | (25) | (12) | (64) | (35) |
Earnings before income taxes | 1,235 | 909 | 3,511 | 2,375 |
Provision for income taxes | 264 | 197 | 755 | 471 |
Net earnings | $ 971 | $ 712 | $ 2,756 | $ 1,904 |
Basic earnings per share (in dollars per share) | $ 2.10 | $ 1.55 | $ 5.97 | $ 4.11 |
Diluted earnings per share (in dollars per share) | $ 2.10 | $ 1.54 | $ 5.96 | $ 4.09 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 461.6 | 460.3 | 461.4 | 462.6 |
Diluted (in shares) | 462.6 | 462.5 | 462.7 | 465.3 |
Antidilutive shares (in shares) | 3 | 1.3 | 2.6 | 1.1 |
Sales | ||||
Revenue | $ 25,004 | $ 26,122 | $ 74,336 | $ 76,605 |
Other revenue | ||||
Revenue | $ 394 | $ 396 | $ 1,157 | $ 1,120 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 971 | $ 712 | $ 2,756 | $ 1,904 |
Other comprehensive income, net of tax | ||||
Pension benefit liabilities | 0 | 11 | 3 | 33 |
Cash flow hedges and currency translation adjustment | (5) | 150 | (14) | 312 |
Other comprehensive income (loss) | (5) | 161 | (11) | 345 |
Comprehensive income | $ 966 | $ 873 | $ 2,745 | $ 2,249 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Assets | |||
Cash and cash equivalents | $ 1,910 | $ 2,229 | $ 954 |
Inventory | 14,731 | 13,499 | 17,117 |
Other current assets | 1,958 | 2,118 | 2,322 |
Total current assets | 18,599 | 17,846 | 20,393 |
Property and equipment | |||
Land | 6,520 | 6,231 | 6,214 |
Buildings and improvements | 36,627 | 34,746 | 34,279 |
Fixtures and equipment | 8,490 | 7,439 | 7,184 |
Computer hardware and software | 3,312 | 3,039 | 2,899 |
Construction-in-progress | 2,000 | 2,688 | 2,358 |
Accumulated depreciation | (23,781) | (22,631) | (22,013) |
Property and equipment, net | 33,168 | 31,512 | 30,921 |
Operating lease assets | 3,086 | 2,657 | 2,596 |
Other noncurrent assets | 1,376 | 1,320 | 1,705 |
Total assets | 56,229 | 53,335 | 55,615 |
Liabilities and shareholders’ investment | |||
Accounts payable | 14,291 | 13,487 | 15,438 |
Accrued and other current liabilities | 6,099 | 5,883 | 6,138 |
Current portion of long-term debt and other borrowings | 1,112 | 130 | 2,207 |
Total current liabilities | 21,502 | 19,500 | 23,783 |
Long-term debt and other borrowings | 14,883 | 16,009 | 14,237 |
Noncurrent operating lease liabilities | 3,031 | 2,638 | 2,590 |
Deferred income taxes | 2,447 | 2,196 | 2,240 |
Other noncurrent liabilities | 1,852 | 1,760 | 1,746 |
Total noncurrent liabilities | 22,213 | 22,603 | 20,813 |
Shareholders’ investment | |||
Common stock | 38 | 38 | 38 |
Additional paid-in capital | 6,681 | 6,608 | 6,558 |
Retained earnings | 6,225 | 5,005 | 4,631 |
Accumulated other comprehensive loss | (430) | (419) | (208) |
Total shareholders’ investment | 12,514 | 11,232 | 11,019 |
Total liabilities and shareholders’ investment | $ 56,229 | $ 53,335 | $ 55,615 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
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) | 461,651,176 | 460,346,947 | 460,297,654 |
Common stock, shares outstanding (in shares) | 461,651,176 | 460,346,947 | 460,297,654 |
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. 28, 2023 | Oct. 29, 2022 | |
Operating activities | ||
Net earnings | $ 2,756 | $ 1,904 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Depreciation and amortization | 2,072 | 2,004 |
Share-based compensation expense | 176 | 177 |
Deferred income taxes | 252 | 548 |
Noncash losses / (gains) and other, net | 101 | 141 |
Changes in operating accounts: | ||
Inventory | (1,232) | (3,215) |
Other assets | (208) | (205) |
Accounts payable | 887 | (224) |
Accrued and other liabilities | 528 | (578) |
Cash provided by operating activities | 5,332 | 552 |
Investing activities | ||
Expenditures for property and equipment | (3,952) | (4,323) |
Proceeds from disposal of property and equipment | 24 | 4 |
Other investments | 18 | 16 |
Cash required for investing activities | (3,910) | (4,303) |
Financing activities | ||
Change in commercial paper, net | 0 | 2,104 |
Additions to long-term debt | 0 | 991 |
Reductions of long-term debt | (114) | (139) |
Dividends paid | (1,503) | (1,339) |
Repurchase of stock | 0 | (2,646) |
Shares withheld for taxes on share-based compensation | (124) | (179) |
Stock option exercises | 0 | 2 |
Cash required for financing activities | (1,741) | (1,206) |
Net decrease in cash and cash equivalents | (319) | (4,957) |
Cash and cash equivalents at beginning of period | 2,229 | 5,911 |
Cash and cash equivalents at end of period | 1,910 | 954 |
Supplemental information | ||
Leased assets obtained in exchange for new finance lease liabilities | 86 | 116 |
Leased assets obtained in exchange for new operating lease liabilities | $ 679 | $ 203 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Increase (Decrease) in Shareholders' Investment | |||||||||
Beginning balance (in shares) | 460,346,947 | 460,297,654 | 460,346,947 | ||||||
Beginning balance | $ 11,990 | $ 11,605 | $ 11,232 | $ 11,019 | $ 10,592 | $ 10,774 | $ 12,827 | $ 11,232 | $ 12,827 |
Net earnings | 971 | 835 | 950 | 876 | 712 | 183 | 1,009 | 2,756 | 1,904 |
Other comprehensive income (loss) | (5) | (3) | (3) | (211) | 161 | (17) | 201 | $ (11) | $ 345 |
Dividends declared | $ (513) | (516) | (507) | (502) | $ (502) | (502) | (426) | ||
Repurchase of stock (in shares) | 0 | 0 | 0 | (12,500,000) | |||||
Repurchase of stock | 114 | (10) | |||||||
Accelerated share repurchase pending final settlement (in shares) | 0 | ||||||||
Accelerated share repurchase pending final settlement | (2,750) | ||||||||
Stock options and awards | $ 71 | 69 | (67) | $ 50 | $ 56 | 40 | (77) | ||
Ending balance (in shares) | 461,651,176 | 460,346,947 | 460,297,654 | 461,651,176 | 460,297,654 | ||||
Ending balance | $ 12,514 | $ 11,990 | $ 11,605 | $ 11,232 | $ 11,019 | $ 10,592 | $ 10,774 | $ 12,514 | $ 11,019 |
Common Stock | |||||||||
Increase (Decrease) in Shareholders' Investment | |||||||||
Beginning balance (in shares) | 461,600,000 | 461,600,000 | 460,300,000 | 460,300,000 | 460,200,000 | 463,700,000 | 471,300,000 | 460,300,000 | 471,300,000 |
Beginning balance | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 | $ 39 | $ 39 | $ 38 | $ 39 |
Repurchase of stock (in shares) | (3,600,000) | (100,000) | |||||||
Repurchase of stock | $ (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 | 1,300,000 | 100,000 | 100,000 | 1,400,000 | ||||
Stock options and awards | $ 1 | ||||||||
Ending balance (in shares) | 461,700,000 | 461,600,000 | 461,600,000 | 460,300,000 | 460,300,000 | 460,200,000 | 463,700,000 | 461,700,000 | 460,300,000 |
Ending balance | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 | $ 39 | $ 38 | $ 38 |
Additional Paid-in Capital | |||||||||
Increase (Decrease) in Shareholders' Investment | |||||||||
Beginning balance | 6,610 | 6,541 | 6,608 | 6,558 | 6,502 | 5,592 | 6,421 | 6,608 | 6,421 |
Repurchase of stock | 870 | ||||||||
Accelerated share repurchase pending final settlement | (751) | ||||||||
Stock options and awards | 71 | 69 | (67) | 50 | 56 | 40 | (78) | ||
Ending balance | 6,681 | 6,610 | 6,541 | 6,608 | 6,558 | 6,502 | 5,592 | 6,681 | 6,558 |
Retained Earnings | |||||||||
Increase (Decrease) in Shareholders' Investment | |||||||||
Beginning balance | 5,767 | 5,448 | 5,005 | 4,631 | 4,421 | 5,495 | 6,920 | 5,005 | 6,920 |
Net earnings | 971 | 835 | 950 | 876 | 712 | 183 | 1,009 | ||
Dividends declared | (513) | (516) | (507) | (502) | (502) | (502) | (426) | ||
Repurchase of stock | (755) | (10) | |||||||
Accelerated share repurchase pending final settlement | (1,998) | ||||||||
Ending balance | 6,225 | 5,767 | 5,448 | 5,005 | 4,631 | 4,421 | 5,495 | 6,225 | 4,631 |
Accumulated Other Comprehensive (Loss)/Income | |||||||||
Increase (Decrease) in Shareholders' Investment | |||||||||
Beginning balance | (425) | (422) | (419) | (208) | (369) | (352) | (553) | (419) | (553) |
Other comprehensive income (loss) | (5) | (3) | (3) | (211) | 161 | (17) | 201 | ||
Ending balance | $ (430) | $ (425) | $ (422) | $ (419) | $ (208) | $ (369) | $ (352) | $ (430) | $ (208) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 1.10 | $ 1.08 | $ 4.14 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Oct. 28, 2023 | |
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 most recent 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. |
Revenue
Revenue | 9 Months Ended |
Oct. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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). Revenue Three Months Ended Nine Months Ended (millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Apparel & accessories (a) $ 4,007 $ 4,367 $ 12,075 $ 13,223 Beauty & household essentials (b) 7,619 7,465 22,814 21,726 Food & beverage (c) 5,736 5,748 17,125 16,521 Hardlines (d) 3,192 3,665 9,966 11,244 Home furnishings & décor (e) 4,420 4,832 12,230 13,750 Other 30 45 126 141 Sales 25,004 26,122 74,336 76,605 Credit card profit sharing 165 184 508 550 Other 229 212 649 570 Other revenue 394 396 1,157 1,120 Total revenue $ 25,398 $ 26,518 $ 75,493 $ 77,725 (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 28, 2023, January 28, 2023, and October 29, 2022, the accrual for estimated returns was $207 million, $174 million, and $209 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 28, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability October 28, (millions) Gift card liability (a) $ 1,240 $ 466 $ (796) $ 910 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage. Other Revenue 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 revenue, 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. 28, 2023 | |
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 28, 2023 January 28, 2023 October 29, 2022 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 1,004 $ 1,343 $ — Prepaid forward contracts Other Current Assets Level 1 18 27 27 Interest rate swaps Other Current Assets Level 2 — — 53 Interest rate swaps Other Noncurrent Assets Level 2 — 7 341 Liabilities Interest rate swaps Other Current Liabilities Level 2 7 — — Interest rate swaps Other Noncurrent Liabilities Level 2 190 81 147 Significant Financial Instruments Not Measured at Fair Value (a) (millions) October 28, 2023 January 28, 2023 October 29, 2022 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 14,149 $ 12,485 $ 14,141 $ 13,688 $ 12,505 $ 11,291 (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, fair value hedge adjustments, and lease liabilities. |
Supplier Finance Programs
Supplier Finance Programs | 9 Months Ended |
Oct. 28, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Programs | Supplier Finance Programs We have arrangements with several financial institutions to act as our paying agents to certain vendors. The arrangements also permit the financial institutions to provide vendors with an option, at our vendors' sole discretion, to sell their receivables from Target to the financial institutions. A vendor’s election to receive early payment at a discounted amount from the financial institutions does not change the amount that we must remit to the financial institutions or our payment date, which is up to 120 days from the invoice date. We do not pay any fees or pledge any security to these financial institutions under these arrangements. The arrangements can be terminated by either party with notice ranging up to 120 days. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Oct. 28, 2023 | |
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 $64 million and $98 million for the three and nine months ended October 28, 2023, respectively. We recognized impairment charges of $5 million and $55 million for the three and nine months ended October 29, 2022, 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. 28, 2023 | |
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 three months ended October 28, 2023, there were no commercial paper amounts outstanding. For the three months ended October 29, 2022, the maximum amount outstanding was $2.1 billion and the average daily amount outstanding was $1.1 billion, at a weighted average annual interest rate of 2.8 percent. For the nine months ended October 28, 2023 and October 29, 2022, the maximum amounts outstanding were $90 million and $2.1 billion, respectively, and the average daily amounts outstanding were $1 million and $713 million, respectively, at a weighted average annual interest rate of 4.8 percent and 1.9 percent, respectively. No balances were outstanding as of October 28, 2023. 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 Statements of Financial Position. In October 2023, we obtained a new committed $1.0 billion 364-day unsecured revolving credit facility that will expire in October 2024 and terminated our prior 364-day credit facility. We also exercised our option to extend our existing five-year unsecured revolving credit facility, which has a maximum committed capacity of $3.0 billion and now expires in October 2028. No balances were outstanding under either credit facility at any time during 2023 or 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 28, 2023 | |
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 3 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 28, 2023, January 28, 2023, and October 29, 2022. 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 28, 2023 and October 29, 2022. During 2023, we amended interest rate swaps with notional amounts totaling $1.5 billion to replace the London Interbank Offered Rate (LIBOR) with the daily Secured Overnight Financing Rate (SOFR) as part of our planned reference rate reform activities. These amendments did not result in any change to our application of hedge accounting or any impact to our consolidated financial statements. We were party to forward-starting interest rate swaps with notional amounts totaling $1.45 billion as of October 29, 2022. During 2022, we terminated all remaining forward-starting interest rate swap agreements. The resulting gains upon termination were recorded in Accumulated Other Comprehensive Loss and will be recognized as a reduction to Net Interest Expense over the respective term of the debt. Effect of Hedges on Debt (millions) October 28, 2023 January 28, 2023 October 29, 2022 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,245 $ 2,366 $ 2,294 Cumulative hedging adjustments, included in carrying amount (197) (74) (146) Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swaps designated as fair value hedges $ (60) $ (168) $ (123) $ (223) Hedged debt 60 168 123 223 Gain on cash flow hedges recognized in Net Interest Expense 6 — 18 — Total $ 6 $ — $ 18 $ — |
Share Repurchase
Share Repurchase | 9 Months Ended |
Oct. 28, 2023 | |
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 nine months ended October 28, 2023. Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Number of shares purchased — — — 12.5 Average price paid per share $ — $ — $ — $ 211.57 Total investment $ — $ — $ — $ 2,646 |
Pension Benefits
Pension Benefits | 9 Months Ended |
Oct. 28, 2023 | |
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 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Service cost benefits earned SG&A $ 19 $ 22 $ 58 $ 68 Interest cost on projected benefit obligation Net Other Income 42 29 125 88 Expected return on assets Net Other Income (67) (59) (201) (176) Amortization of losses Net Other Income — 16 1 46 Prior service cost Net Other Income — — 11 10 Total $ (6) $ 8 $ (6) $ 36 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Oct. 28, 2023 | |
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 28, 2023 $ 300 $ (23) $ (696) $ (419) Other comprehensive income (loss) before reclassifications, net of tax — (1) — (1) Amounts reclassified from AOCI, net of tax (13) — 3 (10) October 28, 2023 $ 287 $ (24) $ (693) $ (430) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Pay vs Performance Disclosure | |||||||||
Net earnings | $ 971 | $ 835 | $ 950 | $ 876 | $ 712 | $ 183 | $ 1,009 | $ 2,756 | $ 1,904 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Oct. 28, 2023 | |
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 revenue, Shipt membership and service revenues, commissions earned on third-party sales through Target.com, rental income, and other miscellaneous revenues. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | Revenue Three Months Ended Nine Months Ended (millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Apparel & accessories (a) $ 4,007 $ 4,367 $ 12,075 $ 13,223 Beauty & household essentials (b) 7,619 7,465 22,814 21,726 Food & beverage (c) 5,736 5,748 17,125 16,521 Hardlines (d) 3,192 3,665 9,966 11,244 Home furnishings & décor (e) 4,420 4,832 12,230 13,750 Other 30 45 126 141 Sales 25,004 26,122 74,336 76,605 Credit card profit sharing 165 184 508 550 Other 229 212 649 570 Other revenue 394 396 1,157 1,120 Total revenue $ 25,398 $ 26,518 $ 75,493 $ 77,725 (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 28, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability October 28, (millions) Gift card liability (a) $ 1,240 $ 466 $ (796) $ 910 (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. 28, 2023 | |
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 28, 2023 January 28, 2023 October 29, 2022 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 1,004 $ 1,343 $ — Prepaid forward contracts Other Current Assets Level 1 18 27 27 Interest rate swaps Other Current Assets Level 2 — — 53 Interest rate swaps Other Noncurrent Assets Level 2 — 7 341 Liabilities Interest rate swaps Other Current Liabilities Level 2 7 — — Interest rate swaps Other Noncurrent Liabilities Level 2 190 81 147 |
Schedule of Significant Financial Instruments Not Measured at Fair Value | Significant Financial Instruments Not Measured at Fair Value (a) (millions) October 28, 2023 January 28, 2023 October 29, 2022 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 14,149 $ 12,485 $ 14,141 $ 13,688 $ 12,505 $ 11,291 (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, fair value hedge adjustments, and lease liabilities. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
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 28, 2023 January 28, 2023 October 29, 2022 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,245 $ 2,366 $ 2,294 Cumulative hedging adjustments, included in carrying amount (197) (74) (146) Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended (millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swaps designated as fair value hedges $ (60) $ (168) $ (123) $ (223) Hedged debt 60 168 123 223 Gain on cash flow hedges recognized in Net Interest Expense 6 — 18 — Total $ 6 $ — $ 18 $ — |
Share Repurchase (Tables)
Share Repurchase (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity (excluding ASR) | Share Repurchase Activity Three Months Ended Nine Months Ended (millions, except per share data) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Number of shares purchased — — — 12.5 Average price paid per share $ — $ — $ — $ 211.57 Total investment $ — $ — $ — $ 2,646 |
Pension Benefits (Tables)
Pension Benefits (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plan Benefits | Net Pension Benefits Expense Three Months Ended Nine Months Ended (millions) Classification October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Service cost benefits earned SG&A $ 19 $ 22 $ 58 $ 68 Interest cost on projected benefit obligation Net Other Income 42 29 125 88 Expected return on assets Net Other Income (67) (59) (201) (176) Amortization of losses Net Other Income — 16 1 46 Prior service cost Net Other Income — — 11 10 Total $ (6) $ 8 $ (6) $ 36 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
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 28, 2023 $ 300 $ (23) $ (696) $ (419) Other comprehensive income (loss) before reclassifications, net of tax — (1) — (1) Amounts reclassified from AOCI, net of tax (13) — 3 (10) October 28, 2023 $ 287 $ (24) $ (693) $ (430) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 25,398 | $ 26,518 | $ 75,493 | $ 77,725 |
Apparel & accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,007 | 4,367 | 12,075 | 13,223 |
Beauty & household essentials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,619 | 7,465 | 22,814 | 21,726 |
Food & beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,736 | 5,748 | 17,125 | 16,521 |
Hardlines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,192 | 3,665 | 9,966 | 11,244 |
Home furnishings and decor | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,420 | 4,832 | 12,230 | 13,750 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30 | 45 | 126 | 141 |
Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,004 | 26,122 | 74,336 | 76,605 |
Credit card profit sharing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 165 | 184 | 508 | 550 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 229 | 212 | 649 | 570 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 394 | $ 396 | $ 1,157 | $ 1,120 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Accrual for estimated returns | $ 207 | $ 174 | $ 209 |
Revenue - Gift Card Liability (
Revenue - Gift Card Liability (Details) $ in Millions | 9 Months Ended |
Oct. 28, 2023 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 1,240 |
Gift Cards Issued During Current Period But Not Redeemed | 466 |
Revenue Recognized From Beginning Liability | (796) |
Ending balance | $ 910 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Assets | |||
Prepaid forward contracts and interest rate swaps classified as Other Current Assets | $ 1,958 | $ 2,118 | $ 2,322 |
Interest rate swaps classified as Other Noncurrent Assets | 1,376 | 1,320 | 1,705 |
Liabilities | |||
Interest rate swaps classified as Other Noncurrent Liabilities | 1,852 | 1,760 | 1,746 |
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | |||
Assets | |||
Prepaid forward contracts and interest rate swaps classified as Other Current Assets | 18 | 27 | 27 |
Fair value measured on recurring basis | Level 1 | Short-term investments | |||
Assets | |||
Short-term investments classified as Cash and Cash Equivalents | 1,004 | 1,343 | 0 |
Fair value measured on recurring basis | Level 2 | Interest rate swaps | |||
Assets | |||
Prepaid forward contracts and interest rate swaps classified as Other Current Assets | 0 | 0 | 53 |
Interest rate swaps classified as Other Noncurrent Assets | 0 | 7 | 341 |
Liabilities | |||
Interest rate swaps classified as Other Current Liabilities | 7 | 0 | 0 |
Interest rate swaps classified as Other Noncurrent Liabilities | $ 190 | $ 81 | $ 147 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Carrying Amount | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 14,149 | $ 14,141 | $ 12,505 |
Fair Value | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 12,485 | $ 13,688 | $ 11,291 |
Supplier Finance Programs (Deta
Supplier Finance Programs (Details) - USD ($) $ in Billions | 9 Months Ended | ||
Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | |
Payables and Accruals [Abstract] | |||
Payment timing (in days) | 120 days | ||
Maximum days for termination notice (in days) | 120 days | ||
Outstanding obligation | $ 4.5 | $ 3.4 | $ 4.5 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Impairment charges | $ 64 | $ 5 | $ 98 | $ 55 |
Commercial Paper and Long-Ter_2
Commercial Paper and Long-Term Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Debt Instrument [Line Items] | ||||
Maximum amount outstanding during period | $ 2,100,000,000 | $ 90,000,000 | $ 2,100,000,000 | |
Average daily amount outstanding | $ 1,100,000,000 | $ 1,000,000 | $ 713,000,000 | |
Weighted average interest rate (in percent) | 2.80% | 4.80% | 1.90% | |
Line of credit facility, outstanding balance | $ 0 | $ 0 | ||
Revolving Credit Facility | Credit Facility Expiring October 2028 | Subsequent Event | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 3,000,000,000 | |||
Expiration period (in days) | 5 years | |||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding of short term debt | 0 | |||
Long-term debt, current maturity | $ 2,100,000,000 | $ 0 | $ 2,100,000,000 | |
Line of Credit | Revolving Credit Facility | Credit Facility Expiring October 2024 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 1,000,000,000 | |||
Expiration period (in days) | 364 days | |||
Line of Credit | Revolving Credit Facility | Credit Facility Expiring October 2023 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Expiration period (in days) | 364 days |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Interest Rate Swaps | |||
Derivative Contracts - Effect on Results of Operations (millions) | |||
Notional amount | $ 2,450 | $ 2,450 | $ 2,450 |
Interest Rate Swaps | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Derivative Contracts - Effect on Results of Operations (millions) | |||
Notional amount | $ 1,500 | ||
Forward-Starting Interest Rate Swap | |||
Derivative Contracts - Effect on Results of Operations (millions) | |||
Notional amount | $ 1,450 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Effect of Hedges on Debt (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Carrying amount of hedged debt | $ 2,245 | $ 2,366 | $ 2,294 |
Cumulative hedging adjustments, included in carrying amount | $ (197) | $ (74) | $ (146) |
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt and other borrowings | Long-term debt and other borrowings | Long-term debt and other borrowings |
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. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Gain (loss) on fair value hedges recognized in Net Interest Expense | ||||
Interest rate swaps designated as fair value hedges | $ (60) | $ (168) | $ (123) | $ (223) |
Hedged debt | 60 | 168 | 123 | 223 |
Gain on cash flow hedges recognized in Net Interest Expense | 6 | 0 | 18 | 0 |
Total | $ 6 | $ 0 | $ 18 | $ 0 |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Equity [Abstract] | ||||
Accelerated share repurchase pending final settlement (in shares) | 0 | |||
Number of shares purchased (in shares) | 0 | 0 | 0 | 12,500,000 |
Average price paid per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 211.57 |
Total investment | $ 0 | $ 0 | $ 0 | $ 2,646 |
Pension Benefits (Details)
Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Net Pension Benefits Expense | ||||
Service cost benefits earned | $ 19 | $ 22 | $ 58 | $ 68 |
Interest cost on projected benefit obligation | 42 | 29 | 125 | 88 |
Expected return on assets | (67) | (59) | (201) | (176) |
Amortization of losses | 0 | 16 | 1 | 46 |
Prior service cost | 0 | 0 | 11 | 10 |
Total | $ (6) | $ 8 | $ (6) | $ 36 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 9 Months Ended |
Oct. 28, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 11,232 |
Amounts reclassified from AOCI, net of tax | (10) |
Ending balance | 12,514 |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (419) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) |
Ending balance | (430) |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 300 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | (13) |
Ending balance | 287 |
Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (23) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | (24) |
Pension | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (696) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | 3 |
Ending balance | $ (693) |