Revenues

9 Months Ended

Oct. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

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

Revenues	Three Months Ended				Nine Months Ended
(millions)	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Apparel and accessories (a)	$	3,927	$	3,564	$	10,630	$	10,510
Beauty and household essentials (b)	6,103		5,125		18,172		15,172
Food and beverage (c)	4,397		3,717		13,158		10,899
Hardlines (d)	3,377		2,460		9,959		7,348
Home furnishings and décor (e)	4,506		3,527		12,395		9,985
Other	26		21		89		83
Sales	22,336		18,414		64,403		53,997
Credit card profit sharing	164		177		488		505
Other	132		74		331		211
Other revenue	296		251		819		716
Total revenue	$	22,632	$	18,665	$	65,222	$	54,713

(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 31, 2020, February 1, 2020, and November 2, 2019, the accrual for estimated returns was $182 million, $117 million, and $137 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	February 1, 2020		Gift Cards Issued During Current Period But Not Redeemed (b)		Revenue Recognized From Beginning Liability		October 31, 2020
(millions)
Gift card liability (a)	$	935	$	372	$	(549)	$	758

(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.