Target (TGT) 10-Q 28 Aug 09 2010 Q2 Quarterly report Financial data

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	3 Months Ended Aug. 01, 2009	3 Months Ended Aug. 02, 2008	6 Months Ended Aug. 01, 2009	6 Months Ended Aug. 02, 2008
Sales	$14,567	$14,971	$28,928	$29,273
Credit card revenues	500	501	972	1,001
Total revenues	15,067	15,472	29,900	30,274
Cost of sales	9,914	10,304	19,851	20,202
Selling, general and administrative expenses	3,136	3,153	6,150	6,190
Credit card expenses	388	347	772	620
Depreciation and amortization	478	448	950	884
Earnings before interest expense and income taxes	1,151	1,220	2,177	2,378
Net interest expense
Nonrecourse debt collateralized by credit card receivables	24	48	51	67
Other interest expense	171	179	348	369
Interest income	(1)	(10)	(2)	(19)
Net interest expense	194	217	397	417
Earnings before income taxes	957	1,003	1,780	1,961
Provision for income taxes	363	369	664	724
Net earnings	$594	$634	$1,116	$1,237
Basic earnings per share (in dollars per share)	0.79	0.82	1.48	1.57
Diluted earnings per share (in dollars per share)	0.79	0.82	1.48	1.56
Weighted average common shares outstanding
Weighted average common shares outstanding, Basic (in shares)	752	770.3	752.1	787.9
Weighted average common shares outstanding, Diluted (in shares)	754.4	773.9	754.2	791.8

Consolidated Statements of Fina

Consolidated Statements of Financial Position (USD $)
In Millions	Aug. 01, 2009	Jan. 31, 2009	Aug. 02, 2008
Assets
Cash and cash equivalents, including marketable securities of $385, $302 and $904	$957	$864	$1,527
Credit card receivables, net of allowance of $1,004, $1,010 and $661	7,288	8,084	7,980
Inventory	7,528	6,705	7,313
Other current assets	1,910	1,835	1,800
Total current assets	17,683	17,488	18,620
Property and equipment
Land	5,726	5,767	5,687
Buildings and improvements	21,530	20,430	19,511
Fixtures and equipment	4,481	4,270	4,031
Computer hardware and software	2,540	2,586	2,498
Construction-in-progress	978	1,763	1,851
Accumulated depreciation	(9,543)	(9,060)	(8,426)
Property and equipment, net	25,712	25,756	25,152
Other noncurrent assets	838	862	1,368
Total assets	44,233	44,106	45,140
Liabilities and shareholders' investment
Accounts payable	6,233	6,337	6,606
Accrued and other current liabilities	3,004	2,913	3,030
Unsecured debt and other borrowings	517	1,262	1,723
Nonrecourse debt collateralized by credit card receivables	56
Total current liabilities	9,810	10,512	11,359
Unsecured debt and other borrowings	11,983	12,000	12,465
Nonrecourse debt collateralized by credit card receivables	5,458	5,490	5,467
Deferred income taxes	494	455	534
Other noncurrent liabilities	1,886	1,937	1,858
Total noncurrent liabilities	19,821	19,882	20,324
Shareholders' investment
Common stock	63	63	63
Additional paid-in-capital	2,822	2,762	2,707
Retained earnings	12,266	11,443	10,861
Accumulated other comprehensive loss	(549)	(556)	(174)
Total shareholders' investment	14,602	13,712	13,457
Total liabilities and shareholders' investment	$44,233	$44,106	$45,140
Common shares outstanding	751.9	752.7	755

1_Consolidated Statements of Fi

Consolidated Statements of Financial Position Parenthetical (USD $)
In Millions	Aug. 01, 2009	Jan. 31, 2009	Aug. 02, 2008
Statement of Financial Position
Cash and cash equivalents, marketable securities	$385	$302	$904
Credit card receivables, allowance	$1,004	$1,010	$661

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Aug. 01, 2009	6 Months Ended Aug. 02, 2008
Operating activities
Net earnings	$1,116	$1,237
Reconciliation to cash flow
Depreciation and amortization	950	884
Share-based compensation expense	48	37
Deferred income taxes	64	14
Bad debt provision	600	437
Loss on disposal of property and equipment, net	74	24
Other non-cash items affecting earnings	28	106
Changes in operating accounts providing/ (requiring) cash
Accounts receivable originated at Target	154	(150)
Inventory	(823)	(533)
Other current assets	(59)	(104)
Other noncurrent assets	19	(17)
Accounts payable	(103)	(115)
Accrued and other current liabilities	30	(179)
Other noncurrent liabilities	(47)	(47)
Other		160
Cash flow provided by operations	2,051	1,754
Investing activities
Expenditures for property and equipment	(1,042)	(1,956)
Proceeds from disposal of property and equipment	24	17
Change in accounts receivable originated at third parties	42	(213)
Other investments	4	(53)
Cash flow required for investing activities	(972)	(2,205)
Financing activities
Reductions of short-term notes payable		(500)
Additions to long-term debt		3,557
Reductions of long-term debt	(754)	(503)
Dividends paid	(241)	(224)
Repurchase of stock		(2,815)
Stock option exercises and related tax benefit	9	21
Other		(8)
Cash flow required for financing activities	(986)	(472)
Net increase/ (decrease) in cash and cash equivalents	93	(923)
Cash and cash equivalents at beginning of period	864	2,450
Cash and cash equivalents at end of period	$957	$1,527

Consolidated Statements of Shar

Consolidated Statements of Shareholders Equity (USD $)
In Millions	Common Stock	Additional Paid-in Capital	Retained Earnings		Pension and Other Benefit Liability Adjustments	Derivative Instruments and Other	Total
Shareholders' investment, beginning balance at Feb. 02, 2008	$68	$2,656	$12,761		($134)	($44)	$15,307
Shares, issued, beginning balance at Feb. 02, 2008	818.7
Other comprehensive income
Shareholders' investment, beginning balance at Feb. 02, 2008	68	2,656	12,761		(134)	(44)	15,307
Shares, issued, beginning balance at Feb. 02, 2008	818.7
Statement of Shareholders Investment
Net earnings			2,214				2,214
Other comprehensive income
Pension and other benefit liability adjustments, net of taxes of $242 and $4, respectively					(376)		(376)
Unrealized losses on cash flow hedges, net of taxes of $2 and $1, respectively						(2)	(2)
Total comprehensive income							1,836
Dividends declared			(471)	[1]			(471)	[1]
Repurchase of stock, value	(5)		(3,061)				(3,066)
Repurchase of stock, shares	-67.2
Stock options and awards, value		106					106
Stock options and awards, shares	1.2
Shareholders' investment, ending balance at Jan. 31, 2009	63	2,762	11,443		(510)	(46)	13,712
Shares, issued, ending balance at Jan. 31, 2009	752.7
Statement of Shareholders Investment
Net earnings			1,116				1,116
Other comprehensive income
Pension and other benefit liability adjustments, net of taxes of $242 and $4, respectively					7		7
Unrealized losses on cash flow hedges, net of taxes of $2 and $1, respectively						1	1
Currency translation adjustment, net of taxes of $0						(1)	(1)
Total comprehensive income							1,123
Dividends declared			(249)	[1]			(249)	[1]
Repurchase of stock, value			(44)				(44)
Repurchase of stock, shares	-1.2
Stock options and awards, value		60					60
Stock options and awards, shares	0.4
Shareholders' investment, ending balance at Aug. 01, 2009	$63	$2,822	$12,266		($503)	($46)	$14,602
Shares, issued, ending balance at Aug. 01, 2009	751.9
[1]Dividends declared per share were $0.17 and $0.16 for the three months ended August 1, 2009 and August 2, 2008, respectively, and $0.33 and $0.30 for the six months ended August 1, 2009 and August 2, 2008, respectively. For the fiscal year ended January 31, 2009, dividends declared per share were $0.62.

2_Consolidated Statements of Sh

Consolidated Statements of Shareholders Equity Parenthetical (USD $)
In Millions	Pension and Other Benefit Liability Adjustments	Derivative Instruments and Other	Total
Pension and other benefit liability adjustments, tax	$242		$242
Unrealized losses on cash flow hedges, tax		2	2
Pension and other benefit liability adjustments, tax	4		4
Unrealized losses on cash flow hedges, tax		1	1
Currency translation adjustment, taxes		$0	$0

Accounting Policies

Accounting Policies
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Accounting Policies	1. Accounting Policies The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statement disclosures contained in the 2008 Form10-K for Target Corporation (the Corporation). The same accounting policies are followed in preparing quarterly financial data as are followed in preparing annual data. See Note 1 in our Form10-K for the fiscal year ended January31, 2009 for those policies. In the opinion of management, all adjustments necessary for a fair statement of quarterly operating results are reflected herein and are of a normal, recurring nature. We have performed an evaluation of events that have occurred subsequent to August1, 2009, and as of August28, 2009 (the date of the filing of this Form10-Q). There have been no subsequent events that occurred during such period that would require disclosure in this Form10-Q or would be required to be recognized in the Consolidated Financial Statements as of or for the three and six-month periods ending August1, 2009. 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.

Earnings Per Share

Earnings Per Share
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Earnings Per Share	2. Earnings Per Share Basic earnings per share (EPS) is net earnings divided by the weighted average number of common shares outstanding during the period. Diluted EPS includes the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued under performance share and restricted stock unit arrangements. Basic EPS Diluted EPS Three Months Ended Six Months Ended Three Months Ended Six Months Ended Earnings Per Share Aug.1, Aug.2, Aug.1, Aug.2, Aug.1, Aug.2, Aug.1, Aug.2, (millions, except per share data) 2009 2008 2009 2008 2009 2008 2009 2008 Net earnings $ 594 $ 634 $ 1,116 $ 1,237 $ 594 $ 634 $ 1,116 $ 1,237 Basic weighted average common shares outstanding 752.0 770.3 752.1 787.9 752.0 770.3 752.1 787.9 Incremental stock options, performance share units and restricted stock units 2.4 3.6 2.1 3.9 Weighted average common shares outstanding 752.0 770.3 752.1 787.9 754.4 773.9 754.2 791.8 Earnings per share $ 0.79 $ 0.82 $ 1.48 $ 1.57 $ 0.79 $ 0.82 $ 1.48 $ 1.56 For the August1, 2009 and August2, 2008 computations, 25.5 million and 10.2 million stock options, respectively, were excluded from the calculation of weighted average shares for diluted EPS because their effects were antidilutive.

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Fair Value Measurements	3. Fair Value Measurements The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liabilitys fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Assets and liabilities measured at fair value are categorized based upon the lowest level of significant input to the valuations. In determining fair value we use observable market data when available. Additionally, we consider both counterparty credit risk and our own creditworthiness in determining fair value. We attempt to mitigate credit risk to third parties by entering into netting and collateral arrangements. In those instances, the net exposure is then measured considering the counterpartys creditworthiness. In the first quarter of 2008, we adopted the fair value measurement guidance for financial assets and liabilities. In the first quarter of 2009, we adopted the fair value measurement guidance for nonfinancial assets and liabilities. The following table presents financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Recurring Basis Fair Value at August1, 2009 Fair Value at January31, 2009 Fair Value at August2, 2008 (millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents Marketable securities $ 385 $ $ $ 302 $ $ $ 904 $ $ Other current assets Prepaid forward contracts 59 68 109 Equity swaps 1 1 2 Interest rate swaps(a) 1 Other noncurrent assets Interest rate swaps(b) 131 163 79 Company-owned life insurance investments(c) 323 296 528 Total $ 768 $ 131 $ $ 667 $ 163 $ $ 1,543 $ 80 $ Liabilities Other noncurrent liabilities Interest rate swaps $ $ 14 $ $ $ 30 $ $ $ $ Total $ $ 14 $ $ $ 30 $ $ $ $ (a) Designated as an accounting hedge. (b) At August2, 2008, two interest rate swaps with a combined fair value of $15 million were designated as accounting hedges. (c) Company owned life insurance investments consist of equity index funds and fixed income assets. Amounts are presented net of loans that are secured by some of these policies of $196 million at August1, 2009, $197 million at January31, 2009, and $407 million at August2, 2008.

Credit Card Receivables

Credit Card Receivables
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Credit Card Receivables	4. Credit Card Receivables Credit card receivables are recorded net of an allowance for expected losses. The allowance, recognized in an amount equal to anticipated future write-offs of existing receivables, was $1,004 million at August1, 2009, $1,010 million at January31, 2009 and $661 million at August2, 2008. This allowance includes provisions for uncollectible finance charges and other credit-related fees. We estimate future write-offs based on historical experience of delinquencies, risk scores, aging trends, and industry risk trends. Substantially all accounts continue to accrue finance charges until they are written off. Total receivables past due ninety days or more and still accruing finance charges were $340 million at August1, 2009, $393 million at January31, 2009 and $267 million at August2, 2008. Accounts are written off when they become 180 days past due. Under certain circumstances, we offer payment plans to cardholders that restructure the terms of finance charges and minimum payments that meet the accounting definition of a troubled debt restructuring (TDRs). These concessions are made on an individual cardholder basis for economic or legal reasons specific to each individual cardholders circumstances. As a percentage of period end gross receivables, receivables classified as TDRs were 6.5 percent at August1, 2009, 4.9 percent at January31, 2009, and 3.6 percent at August2, 2008. Receivables classified as TDRs are treated consistently with other aged receivables in determining our allowance for doubtful accounts. As a method of providing funding for our credit card receivables, we sell on an ongoing basis all of our consumer credit card receivables to Target Receivables Corporation (TRC), a wholly owned, bankruptcy remote subsidiary. TRC then transfers the receivables to the Target Credit Card Master Trust (the Trust), which from time to time will sell debt securities to third parties either directly or through a related trust. These debt securities represent undivided interests in the Trust assets. TRC uses the proceeds from the sale of debt securities and its share of collections on the receivables to pay the purchase price of the receivables to the Corporation. We consolidate the receivables within the Trust and any debt securities issued by the Trust, or a related trust, in our Consolidated Statements of Financial Position based upon the applicable accounting guidance. The receivables transferred to the Trust are not available to general creditors of the Corporation. The payments to the holders of the debt securities issued by the Trust or the related trust are made solely from the assets transferred to the Trust or the related trust and are nonrecourse to the general assets of the Corporation. Upon termination of the securitization program and repayment of all debt securities, any remaining assets could be distributed to the Corporation in a liquidation of TRC. In the second quarter of 2008, we sold an interest in our credit card receivables to a JPMorgan Chase affiliate (JPMC). The interest sold represented 47 percent of the receivables portfolio at the time of the transaction. This transaction was acc

Contingencies

Contingencies
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Contingencies	5. Contingencies We are exposed to claims and litigation arising in the ordinary course of business and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not believe that any of the currently identified claims or litigation will materially affect our results of operations, cash flows or financial condition.

Notes Payable

Notes Payable
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Notes Payable	6. Notes Payable We obtain short-term financing from time to time under our commercial paper program, a form of notes payable. There were no amounts outstanding under our commercial paper program at August1, 2009, January31, 2009, or August2, 2008.

Derivative Financial Instrument

Derivative Financial Instruments
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Derivative Financial Instruments	7. Derivative Financial Instruments Derivative financial instruments are reported at fair value on the Consolidated Statements of Financial Position. Our derivative instruments have been primarily interest rate swaps. We use these derivatives to mitigate our interest rate risk. We have counterparty credit risk resulting from our derivative instruments. This risk lies primarily with two global financial institutions. We monitor this concentration of counterparty credit risk on an ongoing basis. Historically, the majority of our derivative instruments were designated as hedge instruments in accordance with applicable accounting guidance. The changes in market value of an interest rate swap, as well as the offsetting change in market value of the hedged debt, were recognized within earnings in the current period. We assessed at the inception of the derivative hedge whether the hedge was highly effective in offsetting changes in fair value or cash flows of hedged items. Ineffectiveness resulted when changes in the market value of the hedged debt were not completely offset by changes in the market value of the interest rate swap. For those derivative contracts whose terms met the conditions of the short-cut method, 100 percent hedge effectiveness was assumed. There was no ineffectiveness recognized during the three and six months ended August1, 2009 and August2, 2008 related to our hedges. At August1, 2009, we had no derivative instruments designated as accounting hedges. During the first quarter of 2008, we terminated certain pay floating interest rate swaps with a combined notional amount of $3,125 million for cash proceeds of $160 million, which are classified within other operating cash flows in the Consolidated Statements of Cash Flows. Because these swaps were designated as hedges, concurrent with their terminations, we stopped making market value adjustments to the associated hedged debt. Gains realized upon termination are being amortized into earnings over the remaining life of the associated hedged debt. Additionally, during 2008, we de-designated certain pay floating interest rate swaps, and upon de-designation, these swaps no longer qualified for hedge accounting treatment. As a result of the de-designation, the unrealized gains on these swaps determined at the date of de-designation are being amortized into earnings over the remaining lives of the previously hedged items. Total net gains amortized into net interest expense for terminated and de-designated swaps were $15 million during each of the three months ended August1, 2009 and August2, 2008. Total net gains amortized into net interest expense for terminated and de-designated swaps were $33 million and $26 million during the six months ended August1, 2009 and August2, 2008, respectively. The amount remaining on unamortized hedged debt valuation gains from terminated and de-designated interest rate swaps that will be amortized into earnings over the remaining lives totaled $230 million, $263 million and $221 million, at August1, 2009, January31, 2009 and August2, 2008. Simultaneous to the de-designations during 2008, we entered into pay fixed swaps to econo

Income Taxes

Income Taxes
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Income Taxes	8. Income Taxes We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 1999. We accrue for the effects of open uncertain tax positions and the related potential penalties and interest. There were no material adjustments to our recorded liability for unrecognized tax benefits during the three and six months ended August1, 2009. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions will increase or decrease during the next 12 months; however, we do not expect the change to have a significant effect on our consolidated results of operations or financial position.

Share Repurchase

Share Repurchase
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Share Repurchase	9. Share Repurchase During the three months ended August1, 2009, we repurchased 0.5 million shares of our common stock, for a total cash investment of $20 million (average price per share of $41.13), all of which was paid in prior periods. During the six months ended August1, 2009, we repurchased 1.2 million shares of our common stock, for a total cash investment of $42 million (average price per share of $34.62), of which $33 million was paid in prior periods. All shares reacquired during the three and six months ended August1, 2009 were delivered upon settlement of prepaid forward contracts. The prepaid forward contracts settled during the three months ended August1, 2009 had a total cash investment of $20 million and an aggregate market value of $21 million at their respective settlement dates. The prepaid forward contracts settled during the six months ended August1, 2009 had a total cash investment of $42 million and an aggregate market value of $44 million at their respective settlement dates. In November2008 we announced a temporary suspension to our open-market share repurchase program. See Note 10, Pension, Postretirement Health Care and Other Benefits, for further details of our prepaid forward contracts. During the three months ended August2, 2008, we repurchased 33.8 million shares of our common stock, for a total cash investment of $1,668 million ($49.30 per share), of which $233 million was paid in prior periods. During the six months ended August2, 2008, we repurchased 64.3 million shares of our common stock for a total cash investment of $3,241 million ($50.37 per share), of which $372 million was paid in prior periods. Of the repurchases during the three and six months ended August2, 2008, 20 million and 30 million shares, respectively, were acquired through the exercise of call options. Since the inception of our current share repurchase program, which began in the fourth quarter of 2007, we have repurchased 94.9 million shares of our common stock, for a total cash investment of $4,882 million (average price per share of $51.44).

Pension, Postretirement Health

Pension, Postretirement Health Care and Other Benefits
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Pension and Post Retirement Health Care Plans	10. Pension, Postretirement Health Care and Other Benefits We have qualified defined benefit pension plans covering team members who meet age and service requirements, including in certain circumstances date of hire. We also have unfunded, nonqualified pension plans for team members with qualified plan compensation restrictions. Benefits are provided based on years of service and team member compensation. Upon retirement, team members also become eligible for certain health care benefits if they meet minimum age and service requirements and agree to contribute a portion of the cost. Net Pension Expense and Pension Benefits Postretirement Health Care Benefits Postretirement Healthcare Three Months Ended Six Month Ended Three Months Ended Six Months Ended Expense Aug.1, Aug.2, Aug.1, Aug.2, Aug.1, Aug.2, Aug.1, Aug.2, (millions) 2009 2008 2009 2008 2009 2008 2009 2008 Service cost $ 25 $ 23 $ 50 $ 46 $ 2 $ 1 $ 3 $ 2 Interest cost 31 29 62 58 2 2 4 4 Expected return on assets (44 ) (40 ) (88 ) (80 ) Recognized losses 6 4 12 8 Recognized prior service cost (1 ) (1 ) (2 ) (2 ) Total $ 17 $ 15 $ 34 $ 30 $ 4 $ 3 $ 7 $ 6 In the 2009 first quarter, we made a discretionary contribution of $100 million to our qualified defined benefit pension plan. We also maintain a nonqualified, unfunded deferred compensation plan for approximately 3,500 current and retired team members whose participation in our 401(k)plan is limited by statute or regulation. These team members choose from a menu of crediting rate alternatives that are the same as the investment choices in our 401(k)plan, including Target common stock. We credit an additional two percent per year to the accounts of all active participants, excluding executive officer participants, in part to recognize the risks inherent to their participation in a plan of this nature. We also maintain a nonqualified, unfunded deferred compensation plan that was frozen during 1996, covering 11 current and 51 retired participants. In this plan, deferred compensation earns returns tied to market levels of interest rates plus an additional six percent return, with a minimum of 12 percent and a maximum of 20 percent, as determined by the plans terms. We control some of our risk of offering the nonqualified plans by investing in vehicles that offset a substantial portion of our economic exposure to the returns of the plans. These investment vehicles include company owned life insurance on approximately 3,600 highly compensated, current and former team members who have given their consent to be insured and prepaid forward contracts in our own common stock. All of these investments are general corporate assets and are marked-to-market with the related gains and losses recognized in the Consolidated Statements of Operations in the period they occur. The total change in fair va

Segment Reporting

Segment Reporting
	6 Months Ended Aug. 01, 2009 USD / shares
Notes to Consolidated Financial Statements
Segment Reporting	11. Segment Reporting Our measure of profit for each segment is a measure that management considers analytically useful in measuring the return we are achieving on our investment. Business Segment Results Three Months Ended August1, 2009 Three Months Ended August2, 2008 Credit Credit (millions) Retail Card Total Retail Card Total Sales/Credit card revenues $ 14,567 $ 500 $ 15,067 $ 14,971 $ 501 $ 15,472 Cost of sales 9,914 9,914 10,304 10,304 Bad debt expense(a) 303 303 256 256 Selling, general and administrative/ Operations and marketing expenses(a), (b) 3,115 106 3,221 3,126 118 3,244 Depreciation and amortization 474 4 478 443 5 448 Earnings before interest expense and income taxes 1,064 87 1,151 1,098 122 1,220 Interest expense on nonrecourse debt collateralized by credit card receivables 24 24 48 48 Segment profit $ 1,064 $ 63 1,127 $ 1,098 $ 74 1,172 Unallocated (income) and expenses Other interest expense 171 179 Interest income (1 ) (10 ) Earnings before income taxes $ 957 $ 1,003 (a) The combination of bad debt expense and operations and marketing expenses within the Credit Card Segment represent credit card expenses on the Consolidated Statements of Operations. (b) New account and loyalty rewards redeemed by our guests reduce reported sales. Our Retail Segment charges the cost of these discounts to our Credit Card Segment, and the reimbursements of $21 million for the three months ended August1, 2009 and $27 million for the three months ended August2, 2008 are recorded as a reduction to SGA expenses within the Retail Segment and an increase to operations and marketing expenses within the Credit Card Segment. Note: The sum of the segment amounts may not equal the total amounts due to rounding. Business Segment Results Six Months Ended August1, 2009 Six Months Ended August2, 2008 Credit Credit (millions) Retail Card Total Retail Card Total Sales/Credit card revenues $ 28,928 $ 972 $ 29,900 $ 29,273 $ 1,001 $ 30,274 Cost of sales 19,851 19,851 20,202 20,202 Bad debt expense(a) 600 600 437 437 Selling, general and administrative/ Operations and marketing expenses(a), (b) 6,109 213 6,322 6,139 234 6,373 Depreciation and amortization 942 7 950 876 8 884 Earnings before interest expense and income taxes 2,026 152 2,177 2,056 322 2,378 Interest expense on nonrecourse debt collateralized by credit card receivables 51 51 67 67 Segment profit $ 2,026 $ 101 2,126 $ 2,056 $ 255 2,311 Unallocated (income) and expenses Other interest expense 348 369 Interest income (2 ) (19 ) Earn

Document and Entity Information

Document and Entity Information (USD $)
	6 Months Ended Aug. 01, 2009	Aug. 26, 2009	Aug. 02, 2008
Document and Entity Information
Entity Registrant Name	TARGET CORPORATION
Entity Central Index Key	0000027419
Document Type	10-Q
Document Period End Date	2009-08-01
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$33,662,914,485
Entity Common Stock, Shares Outstanding		751,859,198