Revenues

6 Months Ended

Aug. 03, 2019

Revenue from Contract with Customer [Abstract]

General merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably credit card profit sharing income from our arrangement with TD Bank Group (TD).



Revenues	Three Months Ended				Six Months Ended
(millions)	August 3, 2019		August 4, 2018		August 3, 2019		August 4, 2018
Apparel and accessories ^(a)	$	3,656	$	3,470	$	6,946	$	6,584
Beauty and household essentials ^(a)	5,076		4,784		10,047		9,401
Food and beverage	3,460		3,372		7,182		6,959
Hardlines	2,503		2,501		4,889		4,814
Home furnishings and décor	3,457		3,402		6,458		6,304
Other	31		23		62		46
Sales	18,183		17,552		35,584		34,108

Credit card profit sharing	168		167		328		333
Other	71		57		137		117
Other revenue	239		224		465		450

Total revenue	$	18,422	$	17,776	$	36,049	$	34,558


^(a)	We reclassified certain non-apparel baby merchandise sales totaling $398 million and $854 million for the three and six months ended August 3, 2019, respectively, and $373 million and $763 million for the three and six months ended August 4, 2018, respectively, from Apparel and Accessories to Beauty and Household Essentials.

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 August 3, 2019, February 2, 2019, and August 4, 2018, the accrual for estimated returns was $131 million, $116 million, and $114 million, respectively. We have not historically had material adjustments to our returns estimates.

Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance.



(millions)	February 2, 2019		Gift Cards Issued During Current Period But Not Redeemed ^(a)		Revenue Recognized From Beginning Liability			August 3, 2019
Gift card liability	$	840	$	317	$	(465	)	$	692


^(a)	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.