10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One) 

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 29, 2023

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number 1-6049

TARGET CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation or organization)

1000 Nicollet Mall, Minneapolis, Minnesota

(Address of principal executive offices)

41-0215170

(I.R.S. Employer Identification No.)

55403

(Zip Code)

612-304-6073

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0833 per share	TGT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐		Smaller reporting company	☐
		Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Total shares of common stock, par value $0.0833, outstanding at August 18, 2023, were 461,605,464.

TARGET CORPORATION

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated Statements of Operations	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Statements of Financial Position	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Shareholders’ Investment	5
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25
Signatures		26

FINANCIAL STATEMENTS	Table of Contents
	Index to Notes

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Statements of Operations
	Three Months Ended				Six Months Ended
(millions, except per share data) (unaudited)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Sales	$	24,384	$	25,653	$	49,332	$	50,483
Other revenue	389		384		763		724
Total revenue	24,773		26,037		50,095		51,207
Cost of sales	17,798		20,142		36,184		38,603
Selling, general and administrative expenses	5,184		5,002		10,209		9,764
Depreciation and amortization (exclusive of depreciation included in cost of sales)	594		572		1,177		1,173
Operating income	1,197		321		2,525		1,667
Net interest expense	141		112		288		224
Net other income	(16)		(8)		(39)		(23)
Earnings before income taxes	1,072		217		2,276		1,466
Provision for income taxes	237		34		491		274
Net earnings	$	835	$	183	$	1,785	$	1,192
Basic earnings per share	$	1.81	$	0.40	$	3.87	$	2.57
Diluted earnings per share	$	1.80	$	0.39	$	3.86	$	2.55
Weighted average common shares outstanding
Basic	461.6		461.5		461.3		463.8
Diluted	462.5		463.6		462.7		466.8
Antidilutive shares	2.9		1.3		2.4		1.0

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION Q2 2023 Form 10-Q 1

FINANCIAL STATEMENTS	Table of Contents
	Index to Notes

Consolidated Statements of Comprehensive Income
	Three Months Ended				Six Months Ended
(millions) (unaudited)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Net earnings	$	835	$	183	$	1,785	$	1,192
Other comprehensive income, net of tax
Pension benefit liabilities	1		11		3		22
Cash flow hedges and currency translation adjustment	(4)		(28)		(9)		162
Other comprehensive income (loss)	(3)		(17)		(6)		184
Comprehensive income	$	832	$	166	$	1,779	$	1,376

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION Q2 2023 Form 10-Q 2

FINANCIAL STATEMENTS	Table of Contents
	Index to Notes

Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)	July 29, 2023		January 28, 2023		July 30, 2022
Assets
Cash and cash equivalents	$	1,617	$	2,229	$	1,117
Inventory	12,684		13,499		15,320
Other current assets	1,797		2,118		2,016
Total current assets	16,098		17,846		18,453
Property and equipment
Land	6,504		6,231		6,161
Buildings and improvements	35,889		34,746		33,694
Fixtures and equipment	7,936		7,439		6,744
Computer hardware and software	3,178		3,039		2,684
Construction-in-progress	2,641		2,688		2,245
Accumulated depreciation	(23,201)		(22,631)		(21,708)
Property and equipment, net	32,947		31,512		29,820
Operating lease assets	2,840		2,657		2,542
Other noncurrent assets	1,321		1,320		1,655
Total assets	$	53,206	$	53,335	$	52,470
Liabilities and shareholders’ investment
Accounts payable	$	12,278	$	13,487	$	14,891
Accrued and other current liabilities	5,948		5,883		5,905
Current portion of long-term debt and other borrowings	1,106		130		1,649
Total current liabilities	19,332		19,500		22,445
Long-term debt and other borrowings	14,926		16,009		13,453
Noncurrent operating lease liabilities	2,798		2,638		2,543
Deferred income taxes	2,334		2,196		1,862
Other noncurrent liabilities	1,826		1,760		1,575
Total noncurrent liabilities	21,884		22,603		19,433
Shareholders’ investment
Common stock	38		38		38
Additional paid-in capital	6,610		6,608		6,502
Retained earnings	5,767		5,005		4,421
Accumulated other comprehensive loss	(425)		(419)		(369)
Total shareholders’ investment	11,990		11,232		10,592
Total liabilities and shareholders’ investment	$	53,206	$	53,335	$	52,470

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 461,600,640, 460,346,947, and 460,236,393 shares issued and outstanding as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively.

Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION Q2 2023 Form 10-Q 3

FINANCIAL STATEMENTS	Table of Contents
	Index to Notes

Consolidated Statements of Cash Flows
	Six Months Ended
(millions) (unaudited)	July 29, 2023		July 30, 2022
Operating activities
Net earnings	$	1,785	$	1,192
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	1,350		1,329
Share-based compensation expense	107		122
Deferred income taxes	141		227
Noncash losses / (gains) and other, net	11		108
Changes in operating accounts:
Inventory	815		(1,418)
Other assets	62		(179)
Accounts payable	(1,137)		(784)
Accrued and other liabilities	264		(644)
Cash provided by (required for) operating activities	3,398		(47)
Investing activities
Expenditures for property and equipment	(2,825)		(2,523)
Proceeds from disposal of property and equipment	6		4
Other investments	(2)		1
Cash required for investing activities	(2,821)		(2,518)
Financing activities
Change in commercial paper, net	—		1,545
Reductions of long-term debt	(72)		(113)
Dividends paid	(996)		(842)
Repurchase of stock	—		(2,646)
Shares withheld for taxes on share-based compensation	(121)		(175)
Stock option exercises	—		2
Cash required for financing activities	(1,189)		(2,229)
Net decrease in cash and cash equivalents	(612)		(4,794)
Cash and cash equivalents at beginning of period	2,229		5,911
Cash and cash equivalents at end of period	$	1,617	$	1,117
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	$	20	$	107
Leased assets obtained in exchange for new operating lease liabilities	337		97

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION Q2 2023 Form 10-Q 4

FINANCIAL STATEMENTS	Table of Contents
	Index to Notes

Consolidated Statements of Shareholders’ Investment
	Common	Stock		Additional				Accumulated Other
	Stock	Par		Paid-in		Retained		Comprehensive
(millions) (unaudited)	Shares	Value		Capital		Earnings		(Loss) / Income		Total
January 29, 2022	471.3	$	39	$	6,421	$	6,920	$	(553)	$	12,827
Net earnings	—	—		—		1,009		—		1,009
Other comprehensive income	—	—		—		—		201		201
Dividends declared	—	—		—		(426)		—		(426)
Repurchase of stock	(0.1)	—		—		(10)		—		(10)
Accelerated share repurchase pending final settlement	(8.9)	(1)		(751)		(1,998)		—		(2,750)
Stock options and awards	1.4	1		(78)		—		—		(77)
April 30, 2022	463.7	$	39	$	5,592	$	5,495	$	(352)	$	10,774
Net earnings	—	—		—		183		—		183
Other comprehensive loss	—	—		—		—		(17)		(17)
Dividends declared	—	—		—		(502)		—		(502)
Repurchase of stock	(3.6)	(1)		870		(755)		—		114
Stock options and awards	0.1	—		40		—		—		40
July 30, 2022	460.2	$	38	$	6,502	$	4,421	$	(369)	$	10,592
Net earnings	—	—		—		712		—		712
Other comprehensive income	—	—		—		—		161		161
Dividends declared	—	—		—		(502)		—		(502)
Stock options and awards	0.1	—		56		—		—		56
October 29, 2022	460.3	$	38	$	6,558	$	4,631	$	(208)	$	11,019
Net earnings	—	—		—		876		—		876
Other comprehensive loss	—	—		—		—		(211)		(211)
Dividends declared	—	—		—		(502)		—		(502)
Stock options and awards	—	—		50		—		—		50
January 28, 2023	460.3	$	38	$	6,608	$	5,005	$	(419)	$	11,232

TARGET CORPORATION Q2 2023 Form 10-Q 5

FINANCIAL STATEMENTS	Table of Contents
	Index to Notes

Consolidated Statements of Shareholders’ Investment
	Common	Stock		Additional				Accumulated Other
	Stock	Par		Paid-in		Retained		Comprehensive
(millions) (unaudited)	Shares	Value		Capital		Earnings		(Loss) / Income		Total
January 28, 2023	460.3	$	38	$	6,608	$	5,005	$	(419)	$	11,232
Net earnings	—	—		—		950		—		950
Other comprehensive loss	—	—		—		—		(3)		(3)
Dividends declared	—	—		—		(507)		—		(507)
Stock options and awards	1.3	—		(67)		—		—		(67)
April 29, 2023	461.6	$	38	$	6,541	$	5,448	$	(422)	$	11,605
Net earnings	—	—		—		835		—		835
Other comprehensive loss	—	—		—		—		(3)		(3)
Dividends declared	—	—		—		(516)		—		(516)
Stock options and awards	—	—		69		—		—		69
July 29, 2023	461.6	$	38	$	6,610	$	5,767	$	(425)	$	11,990

We declared $1.10 and $1.08 dividends per share for the three months ended July 29, 2023 and July 30, 2022, respectively, and $4.14 per share for the fiscal year ended January 28, 2023.

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION Q2 2023 Form 10-Q 6

FINANCIAL STATEMENTS	Table of Contents
INDEX	Index to Notes

INDEX TO NOTES
Notes to Consolidated Financial Statements		8
Note 1	Accounting Policies	8
Note 2	Revenue	9
Note 3	Fair Value Measurements	10
Note 4	Supplier Finance Programs	10
Note 5	Property and Equipment	11
Note 6	Commercial Paper and Long-Term Debt	11
Note 7	Derivative Financial Instruments	11
Note 8	Share Repurchase	12
Note 9	Pension Benefits	12
Note 10	Accumulated Other Comprehensive Income (Loss)	13

TARGET CORPORATION Q2 2023 Form 10-Q 7

FINANCIAL STATEMENTS	Table of Contents
NOTES	Index to Notes

Notes to Consolidated Financial Statements (unaudited)

1. 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.

TARGET CORPORATION Q2 2023 Form 10-Q 8

FINANCIAL STATEMENTS	Table of Contents
NOTES	Index to Notes

2. 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				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Apparel & accessories (a)	$	4,101	$	4,617	$	8,068	$	8,856
Beauty & household essentials (b)	7,513		7,208		15,195		14,261
Food & beverage (c)	5,392		5,268		11,389		10,773
Hardlines (d)	3,383		3,866		6,774		7,579
Home furnishings & décor (e)	3,955		4,647		7,810		8,918
Other	40		47		96		96
Sales	24,384		25,653		49,332		50,483
Credit card profit sharing	169		181		343		366
Other	220		203		420		358
Other revenue	389		384		763		724
Total revenue	$	24,773	$	26,037	$	50,095	$	51,207

(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 July 29, 2023, January 28, 2023, and July 30, 2022, the accrual for estimated returns was $177 million, $174 million, and $175 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, 2023		Gift Cards Issued During Current Period But Not Redeemed (b)		Revenue Recognized From Beginning Liability		July 29, 2023
(millions)
Gift card liability (a)	$	1,240	$	399	$	(679)	$	960

(a)Included in Accrued and Other Current Liabilities.

(b)Net of estimated breakage.

TARGET CORPORATION Q2 2023 Form 10-Q 9

FINANCIAL STATEMENTS	Table of Contents
NOTES	Index to Notes

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.

3. 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	July 29, 2023		January 28, 2023		July 30, 2022
Assets
Short-term investments	Cash and Cash Equivalents	Level 1	$	739	$	1,343	$	189
Prepaid forward contracts	Other Current Assets	Level 1	23		27		26
Interest rate swaps	Other Current Assets	Level 2	—		—		34
Interest rate swaps	Other Noncurrent Assets	Level 2	—		7		290
Liabilities
Interest rate swaps	Other Current Liabilities	Level 2	6		—		—
Interest rate swaps	Other Noncurrent Liabilities	Level 2	130		81		6

Significant Financial Instruments Not Measured at Fair Value (a) (millions)	July 29, 2023				January 28, 2023				July 30, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion (b)	$	14,147	$	13,344	$	14,141	$	13,688	$	11,511	$	11,529

(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.

4. 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.

Our outstanding vendor obligations eligible for early payment under these arrangements totaled $3.7 billion, $3.4 billion, and $4.6 billion as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively, and are included within Accounts Payable on our Consolidated Statements of Financial Position. Our outstanding vendor obligations do not represent actual receivables sold by our vendors to the financial institutions, which may be lower.

TARGET CORPORATION Q2 2023 Form 10-Q 10

FINANCIAL STATEMENTS	Table of Contents
NOTES	Index to Notes

5. Property and Equipment

We 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 $33 million for the three and six months ended July 29, 2023. We recognized impairment charges of $27 million and $50 million for the three and six months ended July 30, 2022, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A).

6. Commercial Paper and Long-Term Debt

We obtain short-term financing from time to time under our commercial paper program. For the six months ended July 29, 2023 and July 30, 2022, the maximum amounts outstanding were $90 million and $1.5 billion, respectively, and the average daily amounts outstanding were $2 million and $538 million, respectively, at a weighted average annual interest rate of 4.9 percent and 1.1 percent, respectively. No balances were outstanding as of July 29, 2023. As of July 30, 2022, $1.5 billion was outstanding and is classified within Current Portion of Long-Term Debt and Other Borrowings on our Consolidated Statements of Financial Position.

7. 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 July 29, 2023 and January 28, 2023, and $2.25 billion as of July 30, 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 six months ended July 29, 2023 and July 30, 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 $2.15 billion as of July 30, 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)	July 29, 2023		January 28, 2023		July 30, 2022
Long-term debt and other borrowings
Carrying amount of hedged debt	$	2,305	$	2,366	$	2,263
Cumulative hedging adjustments, included in carrying amount	(136)		(74)		22

TARGET CORPORATION Q2 2023 Form 10-Q 11

FINANCIAL STATEMENTS	Table of Contents
NOTES	Index to Notes

Effect of Hedges on Net Interest Expense	Three Months Ended				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges	$	(71)	$	49	$	(62)	$	(55)
Hedged debt	71		(49)		62		55
Gain on cash flow hedges recognized in Net Interest Expense	6		—		12		—
Total	$	6	$	—	$	12	$	—

8. 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 six months ended July 29, 2023.

Share Repurchase Activity	Three Months Ended				Six Months Ended
(millions, except per share data)	July 29, 2023		July 30, 2022 (a)		July 29, 2023		July 30, 2022 (a)
Number of shares purchased	—		12.5		—		12.5
Average price paid per share	$	—	$	211.58	$	—	$	211.57
Total investment	$	—	$	2,636	$	—	$	2,646

(a)    Includes activity related to the ASR arrangement that we entered into during the first quarter of 2022 because final settlement occurred in the second quarter of 2022. Under the ASR arrangement, we repurchased 12.5 million shares for a total cash investment of $2.6 billion. We did not enter into an ASR arrangement during any other periods presented.

9. Pension Benefits

We provide pension plan benefits to eligible team members.

Net Pension Benefits Expense		Three Months Ended				Six Months Ended
(millions)	Classification	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Service cost benefits earned	SG&A	$	19	$	23	$	39	$	46
Interest cost on projected benefit obligation	Net Other Income	42		30		83		59
Expected return on assets	Net Other Income	(67)		(58)		(134)		(117)
Amortization of losses	Net Other Income	1		15		1		30
Prior service cost	Net Other Income	8		10		11		10
Total		$	3	$	20	$	—	$	28

TARGET CORPORATION Q2 2023 Form 10-Q 12

FINANCIAL STATEMENTS	Table of Contents
NOTES	Index to Notes

10. 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)
Amounts reclassified from AOCI, net of tax	(9)		—		3		(6)
July 29, 2023	$	291	$	(23)	$	(693)	$	(425)

TARGET CORPORATION Q2 2023 Form 10-Q 13

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
FINANCIAL SUMMARY	Index to Notes

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Summary

Second quarter 2023 included the following notable items:

•GAAP and Adjusted diluted earnings per share were $1.80.

•Total revenue was $24.8 billion, a decrease of (4.9) percent, reflecting a total sales decrease of (4.9) percent and a 1.3 percent increase in other revenue.

•Comparable sales decreased (5.4) percent, reflecting a (4.8) percent decrease in traffic and a (0.7) percent decrease in average transaction amount.

◦Comparable stores-originated sales declined (4.3) percent.

◦Comparable digitally-originated sales declined (10.5) percent.

•Operating income of $1.2 billion was 273.0 percent higher than the comparable prior-year period. See Business Environment below for additional information.

Cash flow provided by operating activities was $3.4 billion for the six months ended July 29, 2023, compared with $47 million cash flow required for operating activities for the six months ended July 30, 2022. The drivers of the operating cash flow increase are described on page 21.

Earnings Per Share	Three Months Ended						Six Months Ended
	July 29, 2023		July 30, 2022		Change		July 29, 2023		July 30, 2022		Change
GAAP diluted earnings per share	$	1.80	$	0.39	357.6	%	$	3.86	$	2.55	51.1	%
Adjustments	—		—				—		0.03
Adjusted diluted earnings per share	$	1.80	$	0.39	357.6	%	$	3.86	$	2.59	49.2	%

Note: Amounts may not foot due to rounding. Adjusted diluted earnings per share (Adjusted EPS), a non-GAAP metric, excludes the impact of certain items. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of our operations. A reconciliation of non-GAAP financial measures to GAAP measures is provided on page 19.

We report after-tax return on invested capital (ROIC) because we believe ROIC provides a meaningful measure of our capital allocation effectiveness over time. For the trailing twelve months ended July 29, 2023, after-tax ROIC was 13.7 percent, compared with 18.4 percent for the trailing twelve months ended July 30, 2022. The calculation of ROIC is provided on page 20.

Business Environment

During the first two quarters of 2023, sales growth in our Frequency categories (Beauty & Household Essentials and Food & Beverage) was more than offset by accelerating decreases in our Discretionary categories (Apparel & Accessories, Hardlines, and Home Furnishings & Décor). This trend of decreased Discretionary category sales began in 2022. In response to this trend, during 2022 we took actions and employed strategies to align inventories with sales trends. These actions, as well as improvements in the supply chain, have resulted in decreased inventory as of July 29, 2023 compared with January 28, 2023 and July 30, 2022. These actions and improvements have also resulted in a reduction in costs related to managing elevated inventory levels and reduced our working capital investment.

Along with supply chain improvements, we have experienced a significant decrease in freight costs due to a decline in freight rates compared to 2022. We have also experienced lower digital fulfillment costs due to a decrease in digital sales and a continued shift by our guests to lower-cost same-day fulfillment options.

We continue to experience higher inventory shrink, as a percentage of sales, relative to historical levels — including significantly higher shrink rates at certain stores. We believe that this trend is pervasive across the retail industry. Increased shrink has had, and if current trends persist will continue to have, an adverse impact on our results of operations, including potential impairment of our long-lived assets.

The Gross Margin Rate analysis on page 17 and the Inventory section on page 21 provide additional information.

TARGET CORPORATION Q2 2023 Form 10-Q 14

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
FINANCIAL SUMMARY	Index to Notes

Analysis of Results of Operations

Summary of Operating Income	Three Months Ended						Six Months Ended
(dollars in millions)	July 29, 2023		July 30, 2022		Change		July 29, 2023		July 30, 2022		Change
Sales	$	24,384	$	25,653	(4.9)	%	$	49,332	$	50,483	(2.3)	%
Other revenue	389		384		1.3		763		724		5.5
Total revenue	24,773		26,037		(4.9)		50,095		51,207		(2.2)
Cost of sales	17,798		20,142		(11.6)		36,184		38,603		(6.3)
Selling, general and administrative expenses	5,184		5,002		3.6		10,209		9,764		4.6
Depreciation and amortization (exclusive of depreciation included in cost of sales)	594		572		3.9		1,177		1,173		0.4
Operating income	$	1,197	$	321	273.0	%	$	2,525	$	1,667	51.5	%

Rate Analysis	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Gross margin rate	27.0	%	21.5	%	26.7	%	23.5	%
SG&A expense rate	20.9		19.2		20.4		19.1
Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales)	2.4		2.2		2.3		2.3
Operating income margin rate	4.8		1.2		5.0		3.3

Note: Gross margin rate is calculated as gross margin (sales less cost of sales) divided by sales. All other rates are calculated by dividing the applicable amount by total revenue.

Sales

Sales include all merchandise sales, net of expected returns, and our estimate of gift card breakage. We use comparable sales to evaluate the performance of our stores and digital channel sales by measuring the change in sales for a period over the comparable prior-year period of equivalent length. Comparable sales include all sales, except sales from stores open less than 13 months, digital acquisitions we have owned less than 13 months, stores that have been closed, and digital acquisitions that we no longer operate. Comparable sales measures vary across the retail industry. As a result, our comparable sales calculation is not necessarily comparable to similarly titled measures reported by other companies. Digitally originated sales include all sales initiated through mobile applications and our websites. Our stores fulfill the majority of digitally originated sales, including shipment from stores to guests, store Order Pickup or Drive Up, and delivery via Shipt. Digitally originated sales may also be fulfilled through our distribution centers, our vendors, or other third parties.

Sales growth—from both comparable sales and new stores—represents an important driver of our long-term profitability. We expect that comparable sales growth will drive the majority of our total sales growth. We believe that our ability to successfully differentiate our guests’ shopping experience through a careful combination of merchandise assortment, price, convenience, guest experience, and other factors will, over the long-term, drive both increasing shopping frequency (number of transactions, or "traffic") and the amount spent each visit (average transaction amount).

TARGET CORPORATION Q2 2023 Form 10-Q 15

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
ANALYSIS OF RESULTS OF OPERATIONS

Comparable Sales	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Comparable sales change	(5.4)	%	2.6	%	(2.8)	%	3.0	%
Drivers of change in comparable sales
Number of transactions (traffic)	(4.8)		2.7		(2.0)		3.3
Average transaction amount	(0.7)		0.0		(0.8)		(0.3)

Comparable Sales by Channel	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Stores originated comparable sales change	(4.3)	%	1.3	%	(1.8)	%	2.3	%
Digitally originated comparable sales change	(10.5)		9.0		(7.0)		6.1

Sales by Channel	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Stores originated	83.1	%	82.1	%	82.8	%	81.9	%
Digitally originated	16.9		17.9		17.2		18.1
Total	100	%	100	%	100	%	100	%

Sales by Fulfillment Channel	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Stores	97.6	%	96.6	%	97.4	%	96.6	%
Other	2.4		3.4		2.6		3.4
Total	100	%	100	%	100	%	100	%

Note: Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping merchandise from stores to guests, Order Pickup, Drive Up, and Shipt.

Sales by Product Category	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Apparel & accessories	17	%	18	%	16	%	18	%
Beauty & household essentials	31		28		31		28
Food & beverage	22		21		23		21
Hardlines	14		15		14		15
Home furnishings & décor	16		18		16		18
Total	100	%	100	%	100	%	100	%

Note 2 to the Financial Statements provides additional product category sales information. The collective interaction of a broad array of macroeconomic, competitive, and consumer behavioral factors, as well as sales mix and the transfer of sales to new stores, makes further analysis of sales metrics infeasible.

We monitor the percentage of purchases that are paid for using RedCards (RedCard Penetration) because our internal analysis has indicated that a meaningful portion of the incremental purchases on RedCards are also incremental sales for Target. Guests receive a 5 percent discount on virtually all purchases when they use a RedCard at Target. For the three months ended July 29, 2023 and July 30, 2022, total RedCard Penetration was 18.6 percent and 20.1 percent, respectively. For the six months ended July 29, 2023 and July 30, 2022, total RedCard Penetration was 18.8 percent and 20.2 percent, respectively.

TARGET CORPORATION Q2 2023 Form 10-Q 16

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
ANALYSIS OF RESULTS OF OPERATIONS

Gross Margin Rate

Quarter-to-Date

Year-to-Date

For the three months ended July 29, 2023, our gross margin rate was 27.0 percent compared with 21.5 percent in the comparable prior-year period. For the six months ended July 29, 2023, our gross margin rate was 26.7 percent compared with 23.5 percent in the comparable prior-year period. For both the three and six months ended July 29, 2023, the increase reflected the net impact of

•merchandising benefit, including

◦lower clearance and promotional markdown rates and other costs compared with the prior-year, which included the impact of inventory impairments and other actions;

◦lower freight costs; and

◦retail price increases;

•lower digital fulfillment costs due to a decrease in digital volume and a shift by our guests to lower-cost same-day fulfillment options; and

•higher inventory shrink.

Business Environment on page 14 provides additional information.

TARGET CORPORATION Q2 2023 Form 10-Q 17

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
ANALYSIS OF RESULTS OF OPERATIONS

Selling, General, and Administrative Expense Rate

For the three months ended July 29, 2023, our SG&A expense rate was 20.9 percent compared with 19.2 percent for the comparable prior-year period. For the six months ended July 29, 2023, our SG&A expense rate was 20.4 percent compared with 19.1 percent for the comparable prior-year period. The increase reflected the deleveraging impact of lower sales and the net impact of cost increases across our business, including investments in team member pay and benefits.

Store Data

Change in Number of Stores	Three Months Ended		Six Months Ended
	July 29, 2023	July 30, 2022	July 29, 2023	July 30, 2022
Beginning store count	1,954	1,933	1,948	1,926
Opened	5	5	11	12
Closed	(4)	(1)	(4)	(1)
Ending store count	1,955	1,937	1,955	1,937

Number of Stores and	Number of Stores			Retail Square Feet (a)
Retail Square Feet	July 29, 2023	January 28, 2023	July 30, 2022	July 29, 2023	January 28, 2023	July 30, 2022
170,000 or more sq. ft.	274	274	273	48,995	48,985	48,798
50,000 to 169,999 sq. ft.	1,534	1,527	1,521	191,947	191,241	190,734
49,999 or less sq. ft.	147	147	143	4,404	4,358	4,256
Total	1,955	1,948	1,937	245,346	244,584	243,788

(a)In thousands; reflects total square feet less office, supply chain facilities, and vacant space.

Other Performance Factors

Net Interest Expense

Net interest expense was $141 million and $288 million for the three and six months ended July 29, 2023, respectively, compared with $112 million and $224 million in the respective comparable prior-year periods. The increase in net interest expense was primarily due to higher average debt levels in addition to higher floating interest rates for the three and six months ended July 29, 2023 compared with the prior-year periods.

Provision for Income Taxes

Our effective income tax rate for the three and six months ended July 29, 2023 was 22.2 percent and 21.6 percent, respectively, compared with 15.8 percent and 18.7 percent in the respective comparable prior-year periods.The increase reflects higher pretax earnings in the current year, resulting in a smaller tax rate benefit from ongoing and discrete tax items.

TARGET CORPORATION Q2 2023 Form 10-Q 18

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES	Index to Notes

Reconciliation of Non-GAAP Financial Measures to GAAP Measures

To provide additional transparency, we have disclosed non-GAAP adjusted diluted earnings per share (Adjusted EPS). This metric excludes certain items presented below. We believe this information is useful in providing period-to-period comparisons of the results of our operations. This measure is not in accordance with, or an alternative to, U.S. GAAP. The most comparable GAAP measure is diluted earnings per share. Adjusted EPS should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate Adjusted EPS differently, limiting the usefulness of the measure for comparisons with other companies.

Reconciliation of Non-GAAP Adjusted EPS	Three Months Ended
	July 29, 2023				July 30, 2022
(millions, except per share data)	Pretax	Net of Tax	Per Share		Pretax	Net of Tax	Per Share
GAAP and adjusted diluted earnings per share			$	1.80			$	0.39

Reconciliation of Non-GAAP Adjusted EPS	Six Months Ended
	July 29, 2023						July 30, 2022
(millions, except per share data)	Pretax		Net of Tax		Per Share		Pretax		Net of Tax		Per Share
GAAP diluted earnings per share					$	3.86					$	2.55
Adjustments
Other (a)	$	—	$	—	$	—	$	20	$	15	$	0.03
Adjusted diluted earnings per share					$	3.86					$	2.59

Note: Amounts may not foot due to rounding.

(a)Other items unrelated to current period operations, none of which were individually significant.

Earnings before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation, and amortization (EBITDA) are non-GAAP financial measures. We believe these measures provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and, for EBITDA, capital investment. These measures are not in accordance with, or an alternative to, GAAP. The most comparable GAAP measure is net earnings. EBIT and EBITDA should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate EBIT and EBITDA differently, limiting the usefulness of the measures for comparisons with other companies.

EBIT and EBITDA	Three Months Ended						Six Months Ended
(dollars in millions)	July 29, 2023		July 30, 2022		Change		July 29, 2023		July 30, 2022		Change
Net earnings	$	835	$	183	356.5	%	$	1,785	$	1,192	49.8	%
+ Provision for income taxes	237		34		591.2		491		274		79.4
+ Net interest expense	141		112		26.3		288		224		28.7
EBIT	$	1,213	$	329	268.8	%	$	2,564	$	1,690	51.8	%
+ Total depreciation and amortization (a)	683		650		5.0		1,350		1,329		1.5
EBITDA	$	1,896	$	979	93.6	%	$	3,914	$	3,019	29.6	%

(a)Represents total depreciation and amortization, including amounts classified within Depreciation and Amortization and within Cost of Sales.

TARGET CORPORATION Q2 2023 Form 10-Q 19

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES	Index to Notes

We have also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.

After-Tax Return on Invested Capital
(dollars in millions)
	Trailing Twelve Months
Numerator	July 29, 2023		July 30, 2022
Operating income	$	4,706	$	5,773
+ Net other income	65		54
EBIT	4,771		5,827
+ Operating lease interest (a)	102		88
- Income taxes (b)	986		1,282
Net operating profit after taxes	$	3,887	$	4,633

Denominator	July 29, 2023			July 30, 2022			July 31, 2021
Current portion of long-term debt and other borrowings	$	1,106		$	1,649		$	1,190
+ Noncurrent portion of long-term debt	14,926			13,453			11,589
+ Shareholders' investment	11,990			10,592			14,860
+ Operating lease liabilities (c)	3,104			2,823			2,695
- Cash and cash equivalents	1,617			1,117			7,368
Invested capital	$	29,509		$	27,400		$	22,966
Average invested capital (d)	$	28,454		$	25,183
After-tax return on invested capital	13.7		%	18.4		%

(a)Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases were owned or accounted for as finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within SG&A. Operating lease interest is added back to operating income in the ROIC calculation to control for differences in capital structure between us and our competitors.

(b)Calculated using the effective tax rates, which were 20.2 percent and 21.7 percent for the trailing twelve months ended July 29, 2023 and July 30, 2022, respectively. For the trailing twelve months ended July 29, 2023 and July 30, 2022, includes tax effect of $1.0 billion and $1.3 billion, respectively, related to EBIT and $20 million and $19 million, respectively, related to operating lease interest.

(c)Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.

(d)Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.

TARGET CORPORATION Q2 2023 Form 10-Q 20

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
ANALYSIS OF FINANCIAL CONDITION	Index to Notes

Analysis of Financial Condition

Liquidity and Capital Resources

Capital Allocation

We follow a disciplined and balanced approach to capital allocation based on the following priorities, ranked in order of importance: first, we fully invest in opportunities to profitably grow our business, create sustainable long-term value, and maintain our current operations and assets; second, we maintain a competitive quarterly dividend and seek to grow it annually; and finally, we return any excess cash to shareholders by repurchasing shares within the limits of our credit rating goals.

Our cash and cash equivalents balance was $1.6 billion, $2.2 billion, and $1.1 billion as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively. Our cash and cash equivalents balance included short-term investments of $739 million, $1.3 billion, and $189 million as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively. Our investment policy is designed to preserve principal and liquidity of our short-term investments. This policy allows investments in large money market funds or in highly-rated direct short-term instruments that mature in 60 days or less. We also place dollar limits on our investments in individual funds or instruments.

Operating Cash Flows

Cash flows provided by operating activities were $3.4 billion for the six months ended July 29, 2023, compared with $47 million of cash flows required for operating activities for the six months ended July 30, 2022. For the six months ended July 29, 2023, operating cash flows increased as a result of higher net earnings and an improvement in working capital, including lower inventory levels, compared with the six months ended July 30, 2022.

Inventory

Inventory was $12.7 billion as of July 29, 2023, compared with $13.5 billion and $15.3 billion at January 28, 2023 and July 30, 2022, respectively. The decrease from the balance as of July 30, 2022 primarily reflects actions taken to align inventory levels with sales trends and improvements in the supply chain, including reduced in-transit inventory.

The Business Environment section on page 14 provides additional information.

Investing Cash Flows

Cash required for investing activities increased to $2.8 billion for the six months ended July 29, 2023, compared to $2.5 billion for the six months ended July 30, 2022, due to capital investments.

Dividends

We paid dividends totaling $499 million ($1.08 per share) and $996 million ($2.16 per share) for the three and six months ended July 29, 2023, respectively, and $417 million ($0.90 per share) and $841 million ($1.80 per share) for the three and six months ended July 30, 2022, respectively, a per share increase of 20.0 percent. We declared dividends totaling $516 million ($1.10 per share) during the second quarter of 2023 and $502 million ($1.08 per share) during the second quarter of 2022, a per share increase of 1.9 percent. We have paid dividends every quarter since our 1967 initial public offering, and it is our intent to continue to do so in the future.

Share Repurchase

We did not repurchase any shares during the six months ended July 29, 2023. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds of this Quarterly Report on Form 10-Q and Note 8 to the Financial Statements for more information.

TARGET CORPORATION Q2 2023 Form 10-Q 21

MANAGEMENT'S DISCUSSION AND ANALYSIS	Table of Contents
ANALYSIS OF FINANCIAL CONDITION	Index to Notes

Financing

Our financing strategy is to ensure liquidity and access to capital markets, to maintain a balanced spectrum of debt maturities, and to manage our net exposure to floating interest rate volatility. Within these parameters, we seek to minimize our borrowing costs. Our ability to access the long-term debt and commercial paper markets has provided us with ample sources of liquidity. Our continued access to these markets depends on multiple factors, including the condition of debt capital markets, our operating performance, and maintaining strong credit ratings. As of July 29, 2023, our credit ratings were as follows:

Credit Ratings	Moody’s	Standard and Poor’s	Fitch
Long-term debt	A2	A	A
Commercial paper	P-1	A-1	F1

If our credit ratings were lowered, our ability to access the debt markets, our cost of funds, and other terms for new debt issuances could be adversely impacted. Each of the credit rating agencies reviews its rating periodically, and there is no guarantee our current credit ratings will remain the same as described above.

We have the ability to obtain short-term financing from time to time under our commercial paper program and credit facilities. Our committed $1.0 billion 364-day and $3.0 billion unsecured revolving credit facilities that will expire in October 2023 and October 2027, respectively, backstop our commercial paper program. No balances were outstanding under either credit facility at any time during 2023 or 2022. We did not have any balances outstanding under our commercial paper program as of July 29, 2023, and we had $1.5 billion outstanding as of July 30, 2022. Note 6 to the Financial Statements provides additional information.

Most of our long-term debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facilities also contain a debt leverage covenant. We are, and expect to remain, in compliance with these covenants. Additionally, as of July 29, 2023, no notes or debentures contained provisions requiring acceleration of payment upon a credit rating downgrade, except that certain outstanding notes allow the note holders to put the notes to us if within a matter of months of each other we experience both (i) a change in control and (ii) our long-term credit ratings are either reduced and the resulting rating is non-investment grade, or our long-term credit ratings are placed on watch for possible reduction and those ratings are subsequently reduced and the resulting rating is non-investment grade.

We believe our sources of liquidity, namely operating cash flows, credit facility capacity, and access to capital markets, will continue to be adequate to meet our contractual obligations, working capital and planned capital expenditures, finance anticipated expansion and strategic initiatives, fund debt maturities, pay dividends, and execute purchases under our share repurchase program for the foreseeable future.

New Accounting Pronouncements

We do not expect any recently issued accounting pronouncements to have a material effect on our financial statements.

TARGET CORPORATION Q2 2023 Form 10-Q 22

MANAGEMENT'S DISCUSSION AND ANALYSIS & SUPPLEMENTAL INFORMATION	Table of Contents
FORWARD LOOKING STATEMENTS & CONTROLS AND PROCEDURES	Index to Notes

Forward-Looking Statements

This report contains forward-looking statements, which are based on our current assumptions and expectations. These statements are typically accompanied by the words “expect,” “may,” “could,” “believe,” “would,” “might,” “anticipates,” or similar words. The principal forward-looking statements in this report include: our financial performance, statements regarding the adequacy of and costs associated with our sources of liquidity, the funding of debt maturities, the execution of our share repurchase program, our expected capital expenditures and new lease commitments, the expected compliance with debt covenants, the expected impact of new accounting pronouncements, our intentions regarding future dividends, the expected return on plan assets, the expected outcome of, and adequacy of our reserves for, claims, litigation, and the resolution of tax matters, and changes in our assumptions and expectations.

All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although we believe there is a reasonable basis for the forward-looking statements, our actual results could be materially different. The most important factors which could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors included in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended January 28, 2023, which should be read in conjunction with the forward-looking statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our primary risk exposures or management of market risks from those disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk of our Form 10-K for the fiscal year ended January 28, 2023.

Item 4. Controls and Procedures

Changes in Internal Control Over Financial Reporting

During the most recently completed fiscal quarter, there were no changes which materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this quarterly report, we conducted an evaluation, under supervision and with the participation of management, including the chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended (Exchange Act). Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective at a reasonable assurance level. Disclosure controls and procedures are defined by Rules 13a-15(e) and 15d-15(e) of the Exchange Act as controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed with the SEC under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

TARGET CORPORATION Q2 2023 Form 10-Q 23

SUPPLEMENTAL INFORMATION	Table of Contents
	Index to Notes

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For the quarterly period ended July 29, 2023, no response is required under Item 103 of Regulation S-K, nor have there been any material developments for any previously reported legal proceedings.

Item 1A. Risk Factors

There have been no material changes to the risk factors described in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended January 28, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On August 11, 2021, our Board of Directors authorized a $15 billion share repurchase program with no stated expiration. Under the program, we have repurchased 23.8 million shares of common stock at an average price of $223.52, for a total investment of $5.3 billion. As of July 29, 2023, the dollar value of shares that may yet be purchased under the program is $9.7 billion. There were no Target common stock purchases made during the three months ended July 29, 2023 by Target or any "affiliated purchaser" of Target, as defined in Rule 10b-18(a)(3) under the Exchange Act.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

On May 31, 2023, Brian C. Cornell, Target’s Chair of the Board and Chief Executive Officer, terminated a written plan for the sale of Target common stock that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act as they existed at the time of adoption. This written plan was adopted on December 2, 2022, was scheduled to expire on August 18, 2023, and provided for the sale of 105,000 shares of Target common stock in the aggregate. 35,000 shares of Target common stock were sold pursuant to the written plan prior to its termination.

TARGET CORPORATION Q2 2023 Form 10-Q 24

SUPPLEMENTAL INFORMATION	Table of Contents
	Index to Notes

Item 6. Exhibits

3.1		Amended and Restated Articles of Incorporation of Target Corporation (as amended through June 9, 2010) (filed as Exhibit (3)A to Target's Current Report on Form 8-K on June 10, 2010 and incorporated herein by reference).
3.2		Bylaws of Target Corporation (as amended and restated through January 11, 2023) (filed as Exhibit 3.2 to Target's Current Report on Form 8-K on January 12, 2023 and incorporated herein by reference).
31.1	**	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	**	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	***	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	***	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	**	Inline XBRL Instance Document
101.SCH	**	Inline XBRL Taxonomy Extension Schema Document
101.CAL	**	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	**	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	**	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	**	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	**	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

**	Filed herewith.
***	Furnished herewith.

TARGET CORPORATION Q2 2023 Form 10-Q 25

SUPPLEMENTAL INFORMATION	Table of Contents
	Index to Notes

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	TARGET CORPORATION
Dated: August 25, 2023	By:	/s/ Michael J. Fiddelke
			Michael J. Fiddelke
			Executive Vice President and
			Chief Financial Officer
			(Duly Authorized Officer and
			Principal Financial Officer)
		/s/ Matthew A. Liegel
			Matthew A. Liegel
			Senior Vice President, Chief Accounting Officer
			and Controller

TARGET CORPORATION Q2 2023 Form 10-Q 26

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

Certifications

I, Brian C. Cornell, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Target Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 25, 2023

/s/ Brian C. Cornell

Brian C. Cornell

Chair of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

Certifications

I, Michael J. Fiddelke, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Target Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 25, 2023

/s/ Michael J. Fiddelke

Michael J. Fiddelke

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Target Corporation, a Minnesota corporation (“the Company”), for the quarter ended July 29, 2023, as filed with the Securities and Exchange Commission on the date hereof (“the Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the officer's knowledge:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 25, 2023

/s/ Brian C. Cornell

Brian C. Cornell

Chair of the Board and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Target Corporation, a Minnesota corporation (“the Company”), for the quarter ended July 29, 2023, as filed with the Securities and Exchange Commission on the date hereof (“the Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the officer's knowledge:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 25, 2023

/s/ Michael J. Fiddelke

Michael J. Fiddelke

Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jul. 29, 2023	Aug. 18, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 29, 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		461,605,464
Entity Central Index Key	0000027419
Amendment Flag	false
Current Fiscal Year End Date	--02-03
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

XML

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Revenue	$ 24,773	$ 26,037	$ 50,095	$ 51,207
Cost of sales	17,798	20,142	36,184	38,603
Selling, general and administrative expenses	5,184	5,002	10,209	9,764
Depreciation and amortization (exclusive of depreciation included in cost of sales)	594	572	1,177	1,173
Operating income	1,197	321	2,525	1,667
Net interest expense	141	112	288	224
Net other income	(16)	(8)	(39)	(23)
Earnings before income taxes	1,072	217	2,276	1,466
Provision for income taxes	237	34	491	274
Net earnings	$ 835	$ 183	$ 1,785	$ 1,192
Basic earnings per share (in dollars per share)	$ 1.81	$ 0.40	$ 3.87	$ 2.57
Diluted earnings per share (in dollars per share)	$ 1.80	$ 0.39	$ 3.86	$ 2.55
Weighted average common shares outstanding
Basic (in shares)	461.6	461.5	461.3	463.8
Diluted (in shares)	462.5	463.6	462.7	466.8
Antidilutive shares (in shares)	2.9	1.3	2.4	1.0
Sales
Revenue	$ 24,384	$ 25,653	$ 49,332	$ 50,483
Other revenue
Revenue	$ 389	$ 384	$ 763	$ 724

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 835	$ 183	$ 1,785	$ 1,192
Other comprehensive income, net of tax
Pension benefit liabilities	1	11	3	22
Cash flow hedges and currency translation adjustment	(4)	(28)	(9)	162
Other comprehensive income (loss)	(3)	(17)	(6)	184
Comprehensive income	$ 832	$ 166	$ 1,779	$ 1,376

XML

Consolidated Statements of Financial Position - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Assets
Cash and cash equivalents	$ 1,617	$ 2,229	$ 1,117
Inventory	12,684	13,499	15,320
Other current assets	1,797	2,118	2,016
Total current assets	16,098	17,846	18,453
Property and equipment
Land	6,504	6,231	6,161
Buildings and improvements	35,889	34,746	33,694
Fixtures and equipment	7,936	7,439	6,744
Computer hardware and software	3,178	3,039	2,684
Construction-in-progress	2,641	2,688	2,245
Accumulated depreciation	(23,201)	(22,631)	(21,708)
Property and equipment, net	32,947	31,512	29,820
Operating lease assets	2,840	2,657	2,542
Other noncurrent assets	1,321	1,320	1,655
Total assets	53,206	53,335	52,470
Liabilities and shareholders’ investment
Accounts payable	12,278	13,487	14,891
Accrued and other current liabilities	5,948	5,883	5,905
Current portion of long-term debt and other borrowings	1,106	130	1,649
Total current liabilities	19,332	19,500	22,445
Long-term debt and other borrowings	14,926	16,009	13,453
Noncurrent operating lease liabilities	2,798	2,638	2,543
Deferred income taxes	2,334	2,196	1,862
Other noncurrent liabilities	1,826	1,760	1,575
Total noncurrent liabilities	21,884	22,603	19,433
Shareholders’ investment
Common stock	38	38	38
Additional paid-in capital	6,610	6,608	6,502
Retained earnings	5,767	5,005	4,421
Accumulated other comprehensive loss	(425)	(419)	(369)
Total shareholders’ investment	11,990	11,232	10,592
Total liabilities and shareholders’ investment	$ 53,206	$ 53,335	$ 52,470

XML

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 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)	461,600,640	460,346,947	460,236,393
Common stock, shares outstanding (in shares)	461,600,640	460,346,947	460,236,393
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

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Operating activities
Net earnings	$ 1,785	$ 1,192
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	1,350	1,329
Share-based compensation expense	107	122
Deferred income taxes	141	227
Noncash losses / (gains) and other, net	11	108
Changes in operating accounts:
Inventory	815	(1,418)
Other assets	62	(179)
Accounts payable	(1,137)	(784)
Accrued and other liabilities	264	(644)
Cash provided by (required for) operating activities	3,398	(47)
Investing activities
Expenditures for property and equipment	(2,825)	(2,523)
Proceeds from disposal of property and equipment	6	4
Other investments	(2)	1
Cash required for investing activities	(2,821)	(2,518)
Financing activities
Change in commercial paper, net	0	1,545
Reductions of long-term debt	(72)	(113)
Dividends paid	(996)	(842)
Repurchase of stock	0	(2,646)
Shares withheld for taxes on share-based compensation	(121)	(175)
Stock option exercises	0	2
Cash required for financing activities	(1,189)	(2,229)
Net decrease in cash and cash equivalents	(612)	(4,794)
Cash and cash equivalents at beginning of period	2,229	5,911
Cash and cash equivalents at end of period	1,617	1,117
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	20	107
Leased assets obtained in exchange for new operating lease liabilities	$ 337	$ 97

XML

Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended						6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jan. 28, 2023	Oct. 29, 2022	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)		460,346,947		460,236,393			460,346,947
Beginning balance	$ 11,605	$ 11,232	$ 11,019	$ 10,592	$ 10,774	$ 12,827	$ 11,232	$ 12,827
Net earnings	835	950	876	712	183	1,009	1,785	1,192
Other comprehensive income (loss)	(3)	(3)	(211)	161	(17)	201	$ (6)	$ 184
Dividends declared	$ (516)	(507)	(502)	(502)	$ (502)	(426)
Repurchase of stock (in shares)	0				(12,500,000)		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	$ 69	(67)	$ 50	56	$ 40	(77)
Ending balance (in shares)	461,600,640		460,346,947		460,236,393		461,600,640	460,236,393
Ending balance	$ 11,990	$ 11,605	$ 11,232	$ 11,019	$ 10,592	$ 10,774	$ 11,990	$ 10,592
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	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	$ 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)		1,300,000		100,000	100,000	1,400,000
Stock options and awards						$ 1
Ending balance (in shares)	461,600,000	461,600,000	460,300,000	460,300,000	460,200,000	463,700,000	461,600,000	460,200,000
Ending balance	$ 38	$ 38	$ 38	$ 38	$ 38	$ 39	$ 38	$ 38
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	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	69	(67)	50	56	40	(78)
Ending balance	6,610	6,541	6,608	6,558	6,502	5,592	6,610	6,502
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	5,448	5,005	4,631	4,421	5,495	6,920	5,005	6,920
Net earnings	835	950	876	712	183	1,009
Dividends declared	(516)	(507)	(502)	(502)	(502)	(426)
Repurchase of stock					(755)	(10)
Accelerated share repurchase pending final settlement						(1,998)
Ending balance	5,767	5,448	5,005	4,631	4,421	5,495	5,767	4,421
Accumulated Other Comprehensive (Loss)/Income
Increase (Decrease) in Shareholders' Investment
Beginning balance	(422)	(419)	(208)	(369)	(352)	(553)	(419)	(553)
Other comprehensive income (loss)	(3)	(3)	(211)	161	(17)	201
Ending balance	$ (425)	$ (422)	$ (419)	$ (208)	$ (369)	$ (352)	$ (425)	$ (369)

XML

Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		12 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jan. 28, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 1.10	$ 1.08	$ 4.14

XML

Accounting Policies

6 Months Ended

Jul. 29, 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.

XML

Revenue

6 Months Ended

Jul. 29, 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				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Apparel & accessories (a)	$	4,101	$	4,617	$	8,068	$	8,856
Beauty & household essentials (b)	7,513		7,208		15,195		14,261
Food & beverage (c)	5,392		5,268		11,389		10,773
Hardlines (d)	3,383		3,866		6,774		7,579
Home furnishings & décor (e)	3,955		4,647		7,810		8,918
Other	40		47		96		96
Sales	24,384		25,653		49,332		50,483
Credit card profit sharing	169		181		343		366
Other	220		203		420		358
Other revenue	389		384		763		724
Total revenue	$	24,773	$	26,037	$	50,095	$	51,207

(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 July 29, 2023, January 28, 2023, and July 30, 2022, the accrual for estimated returns was $177 million, $174 million, and $175 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, 2023		Gift Cards Issued During Current Period But Not Redeemed (b)		Revenue Recognized From Beginning Liability		July 29, 2023
(millions)
Gift card liability (a)	$	1,240	$	399	$	(679)	$	960

(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.

XML

Fair Value Measurements

6 Months Ended

Jul. 29, 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	July 29, 2023		January 28, 2023		July 30, 2022
Assets
Short-term investments	Cash and Cash Equivalents	Level 1	$	739	$	1,343	$	189
Prepaid forward contracts	Other Current Assets	Level 1	23		27		26
Interest rate swaps	Other Current Assets	Level 2	—		—		34
Interest rate swaps	Other Noncurrent Assets	Level 2	—		7		290
Liabilities
Interest rate swaps	Other Current Liabilities	Level 2	6		—		—
Interest rate swaps	Other Noncurrent Liabilities	Level 2	130		81		6

Significant Financial Instruments Not Measured at Fair Value (a) (millions)	July 29, 2023				January 28, 2023				July 30, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion (b)	$	14,147	$	13,344	$	14,141	$	13,688	$	11,511	$	11,529

(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.

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Supplier Finance Programs

6 Months Ended

Jul. 29, 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.

Our outstanding vendor obligations eligible for early payment under these arrangements totaled $3.7 billion, $3.4 billion, and $4.6 billion as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively, and are included within Accounts Payable on our Consolidated Statements of Financial Position. Our outstanding vendor obligations do not represent actual receivables sold by our vendors to the financial institutions, which may be lower.

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Property and Equipment	6 Months Ended
	Jul. 29, 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 $33 million for the three and six months ended July 29, 2023. We recognized impairment charges of $27 million and $50 million for the three and six months ended July 30, 2022, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A).

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Commercial Paper and Long-Term Debt	6 Months Ended
	Jul. 29, 2023
Debt Disclosure [Abstract]
Commercial Paper and Long-Term Debt	Commercial Paper and Long-Term DebtWe obtain short-term financing from time to time under our commercial paper program. For the six months ended July 29, 2023 and July 30, 2022, the maximum amounts outstanding were $90 million and $1.5 billion, respectively, and the average daily amounts outstanding were $2 million and $538 million, respectively, at a weighted average annual interest rate of 4.9 percent and 1.1 percent, respectively. No balances were outstanding as of July 29, 2023. As of July 30, 2022, $1.5 billion was outstanding and is classified within Current Portion of Long-Term Debt and Other Borrowings on our Consolidated Statements of Financial Position.

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Derivative Financial Instruments

6 Months Ended

Jul. 29, 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 July 29, 2023 and January 28, 2023, and $2.25 billion as of July 30, 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 six months ended July 29, 2023 and July 30, 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 $2.15 billion as of July 30, 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)	July 29, 2023		January 28, 2023		July 30, 2022
Long-term debt and other borrowings
Carrying amount of hedged debt	$	2,305	$	2,366	$	2,263
Cumulative hedging adjustments, included in carrying amount	(136)		(74)		22

Effect of Hedges on Net Interest Expense	Three Months Ended				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges	$	(71)	$	49	$	(62)	$	(55)
Hedged debt	71		(49)		62		55
Gain on cash flow hedges recognized in Net Interest Expense	6		—		12		—
Total	$	6	$	—	$	12	$	—

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Share Repurchase

6 Months Ended

Jul. 29, 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 six months ended July 29, 2023.

Share Repurchase Activity	Three Months Ended				Six Months Ended
(millions, except per share data)	July 29, 2023		July 30, 2022 (a)		July 29, 2023		July 30, 2022 (a)
Number of shares purchased	—		12.5		—		12.5
Average price paid per share	$	—	$	211.58	$	—	$	211.57
Total investment	$	—	$	2,636	$	—	$	2,646

(a)    Includes activity related to the ASR arrangement that we entered into during the first quarter of 2022 because final settlement occurred in the second quarter of 2022. Under the ASR arrangement, we repurchased 12.5 million shares for a total cash investment of $2.6 billion. We did not enter into an ASR arrangement during any other periods presented.

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Pension Benefits

6 Months Ended

Jul. 29, 2023

Retirement Benefits [Abstract]

Pension Benefits

Pension Benefits

We provide pension plan benefits to eligible team members.

Net Pension Benefits Expense		Three Months Ended				Six Months Ended
(millions)	Classification	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Service cost benefits earned	SG&A	$	19	$	23	$	39	$	46
Interest cost on projected benefit obligation	Net Other Income	42		30		83		59
Expected return on assets	Net Other Income	(67)		(58)		(134)		(117)
Amortization of losses	Net Other Income	1		15		1		30
Prior service cost	Net Other Income	8		10		11		10
Total		$	3	$	20	$	—	$	28

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jul. 29, 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)
Amounts reclassified from AOCI, net of tax	(9)		—		3		(6)
July 29, 2023	$	291	$	(23)	$	(693)	$	(425)

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended						6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jan. 28, 2023	Oct. 29, 2022	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Pay vs Performance Disclosure
Net earnings	$ 835	$ 950	$ 876	$ 712	$ 183	$ 1,009	$ 1,785	$ 1,192

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Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jul. 29, 2023 shares	Jul. 29, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Brian C. Cornell [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 31, 2023, Brian C. Cornell, Target’s Chair of the Board and Chief Executive Officer, terminated a written plan for the sale of Target common stock that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act as they existed at the time of adoption. This written plan was adopted on December 2, 2022, was scheduled to expire on August 18, 2023, and provided for the sale of 105,000 shares of Target common stock in the aggregate. 35,000 shares of Target common stock were sold pursuant to the written plan prior to its termination.
Name	Brian C. Cornell
Title	Chair of the Board and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	false
Adoption Date	December 2, 2022
Rule 10b5-1 Arrangement Terminated	true
Termination Date	May 31, 2023
Brian C. Cornell, Trading Arrangement, Common Stock Sold In Aggregate [Member] | Brian C. Cornell [Member]
Trading Arrangements, by Individual
Aggregate Available	105,000	105,000
Brian C. Cornell, Trading Arrangement, Common Stock Sold Pursuant To Written Plan Of Termination [Member] | Brian C. Cornell [Member]
Trading Arrangements, by Individual
Aggregate Available	35,000	35,000

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Accounting Policies (Policies)

6 Months Ended

Jul. 29, 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.

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Revenue (Tables)

6 Months Ended

Jul. 29, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue

Revenue	Three Months Ended				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Apparel & accessories (a)	$	4,101	$	4,617	$	8,068	$	8,856
Beauty & household essentials (b)	7,513		7,208		15,195		14,261
Food & beverage (c)	5,392		5,268		11,389		10,773
Hardlines (d)	3,383		3,866		6,774		7,579
Home furnishings & décor (e)	3,955		4,647		7,810		8,918
Other	40		47		96		96
Sales	24,384		25,653		49,332		50,483
Credit card profit sharing	169		181		343		366
Other	220		203		420		358
Other revenue	389		384		763		724
Total revenue	$	24,773	$	26,037	$	50,095	$	51,207

(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, 2023		Gift Cards Issued During Current Period But Not Redeemed (b)		Revenue Recognized From Beginning Liability		July 29, 2023
(millions)
Gift card liability (a)	$	1,240	$	399	$	(679)	$	960

(a)Included in Accrued and Other Current Liabilities.

(b)Net of estimated breakage.

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Fair Value Measurements (Tables)

6 Months Ended

Jul. 29, 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	July 29, 2023		January 28, 2023		July 30, 2022
Assets
Short-term investments	Cash and Cash Equivalents	Level 1	$	739	$	1,343	$	189
Prepaid forward contracts	Other Current Assets	Level 1	23		27		26
Interest rate swaps	Other Current Assets	Level 2	—		—		34
Interest rate swaps	Other Noncurrent Assets	Level 2	—		7		290
Liabilities
Interest rate swaps	Other Current Liabilities	Level 2	6		—		—
Interest rate swaps	Other Noncurrent Liabilities	Level 2	130		81		6

Schedule of Significant Financial Instruments Not Measured at Fair Value

Significant Financial Instruments Not Measured at Fair Value (a) (millions)	July 29, 2023				January 28, 2023				July 30, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion (b)	$	14,147	$	13,344	$	14,141	$	13,688	$	11,511	$	11,529

(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.

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Derivative Financial Instruments (Tables)

6 Months Ended

Jul. 29, 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)	July 29, 2023		January 28, 2023		July 30, 2022
Long-term debt and other borrowings
Carrying amount of hedged debt	$	2,305	$	2,366	$	2,263
Cumulative hedging adjustments, included in carrying amount	(136)		(74)		22

Effect of Hedges on Net Interest Expense	Three Months Ended				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges	$	(71)	$	49	$	(62)	$	(55)
Hedged debt	71		(49)		62		55
Gain on cash flow hedges recognized in Net Interest Expense	6		—		12		—
Total	$	6	$	—	$	12	$	—

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Share Repurchase (Tables)

6 Months Ended

Jul. 29, 2023

Equity [Abstract]

Schedule of Share Repurchase Activity (excluding ASR)

Share Repurchase Activity	Three Months Ended				Six Months Ended
(millions, except per share data)	July 29, 2023		July 30, 2022 (a)		July 29, 2023		July 30, 2022 (a)
Number of shares purchased	—		12.5		—		12.5
Average price paid per share	$	—	$	211.58	$	—	$	211.57
Total investment	$	—	$	2,636	$	—	$	2,646

(a)    Includes activity related to the ASR arrangement that we entered into during the first quarter of 2022 because final settlement occurred in the second quarter of 2022. Under the ASR arrangement, we repurchased 12.5 million shares for a total cash investment of $2.6 billion. We did not enter into an ASR arrangement during any other periods presented.

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Pension Benefits (Tables)

6 Months Ended

Jul. 29, 2023

Retirement Benefits [Abstract]

Schedule of Pension Plan Benefits

Net Pension Benefits Expense		Three Months Ended				Six Months Ended
(millions)	Classification	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Service cost benefits earned	SG&A	$	19	$	23	$	39	$	46
Interest cost on projected benefit obligation	Net Other Income	42		30		83		59
Expected return on assets	Net Other Income	(67)		(58)		(134)		(117)
Amortization of losses	Net Other Income	1		15		1		30
Prior service cost	Net Other Income	8		10		11		10
Total		$	3	$	20	$	—	$	28

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jul. 29, 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)
Amounts reclassified from AOCI, net of tax	(9)		—		3		(6)
July 29, 2023	$	291	$	(23)	$	(693)	$	(425)

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Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 24,773	$ 26,037	$ 50,095	$ 51,207
Apparel & accessories
Disaggregation of Revenue [Line Items]
Revenue	4,101	4,617	8,068	8,856
Beauty & household essentials
Disaggregation of Revenue [Line Items]
Revenue	7,513	7,208	15,195	14,261
Food & beverage
Disaggregation of Revenue [Line Items]
Revenue	5,392	5,268	11,389	10,773
Hardlines
Disaggregation of Revenue [Line Items]
Revenue	3,383	3,866	6,774	7,579
Home furnishings and decor
Disaggregation of Revenue [Line Items]
Revenue	3,955	4,647	7,810	8,918
Other
Disaggregation of Revenue [Line Items]
Revenue	40	47	96	96
Sales
Disaggregation of Revenue [Line Items]
Revenue	24,384	25,653	49,332	50,483
Credit card profit sharing
Disaggregation of Revenue [Line Items]
Revenue	169	181	343	366
Other
Disaggregation of Revenue [Line Items]
Revenue	220	203	420	358
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 389	$ 384	$ 763	$ 724

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Revenue - Narrative (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Revenue from Contract with Customer [Abstract]
Accrual for estimated returns	$ 177	$ 174	$ 175

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Revenue - Gift Card Liability (Details) $ in Millions	6 Months Ended
	Jul. 29, 2023 USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 1,240
Gift Cards Issued During Current Period But Not Redeemed	399
Revenue Recognized From Beginning Liability	(679)
Ending balance	$ 960

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Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Assets
Prepaid forward contracts and interest rate swaps classified as Other Current Assets	$ 1,797	$ 2,118	$ 2,016
Interest rate swaps classified as Other Noncurrent Assets	1,321	1,320	1,655
Liabilities
Interest rate swaps classified as Other Noncurrent Liabilities	1,826	1,760	1,575
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts
Assets
Prepaid forward contracts and interest rate swaps classified as Other Current Assets	23	27	26
Fair value measured on recurring basis | Level 1 | Short-term investments
Assets
Short-term investments classified as Cash and Cash Equivalents	739	1,343	189
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	34
Interest rate swaps classified as Other Noncurrent Assets	0	7	290
Liabilities
Interest rate swaps classified as Other Current Liabilities	6	0	0
Interest rate swaps classified as Other Noncurrent Liabilities	$ 130	$ 81	$ 6

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Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Carrying Amount
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 14,147	$ 14,141	$ 11,511
Fair Value
Financial Instruments, Balance Sheet Groupings
Long-term debt, including current portion	$ 13,344	$ 13,688	$ 11,529

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Supplier Finance Programs (Details) - USD ($) $ in Billions	6 Months Ended
	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Payables and Accruals [Abstract]
Payment timing (in days)	120 days
Maximum days for termination notice (in days)	120 days
Outstanding obligation	$ 3.7	$ 3.4	$ 4.6

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Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Property, Plant and Equipment [Abstract]
Impairment charges	$ 33	$ 27	$ 33	$ 50

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Commercial Paper and Long-Term Debt (Details) - USD ($)	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Debt Instrument [Line Items]
Maximum amount outstanding during period	$ 90,000,000	$ 1,500,000,000
Average daily amount outstanding	$ 2,000,000	$ 538,000,000
Weighted average interest rate (in percent)	4.90%	1.10%
Commercial Paper
Debt Instrument [Line Items]
Long-term debt, current maturity	$ 0	$ 1,500,000,000

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Derivative Financial Instruments - Narrative (Details) - Designated as Hedging Instrument - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Interest Rate Swaps
Derivative Contracts - Effect on Results of Operations (millions)
Notional amount	$ 2,450	$ 2,450	$ 2,250
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			$ 2,150

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Derivative Financial Instruments - Effect of Hedges on Debt (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying amount of hedged debt	$ 2,305	$ 2,366	$ 2,263
Cumulative hedging adjustments, included in carrying amount	$ (136)	$ (74)	$ 22
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

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Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges	$ (71)	$ 49	$ (62)	$ (55)
Hedged debt	71	(49)	62	55
Gain on cash flow hedges recognized in Net Interest Expense	6	0	12	0
Total	$ 6	$ 0	$ 12	$ 0

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Share Repurchase - Schedule of Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Equity, Class of Treasury Stock [Line Items]
Accelerated share repurchase pending final settlement (in shares)			0
Number of shares purchased (in shares)	0	12,500,000	0	12,500,000
Average price paid per share (in dollars per share)	$ 0	$ 211.58	$ 0	$ 211.57
Total investment	$ 0	$ 2,636	$ 0	$ 2,646
Share Repurchase Program 2022
Equity, Class of Treasury Stock [Line Items]
Accelerated share repurchase pending final settlement (in shares)				12,500,000
Total investment				$ 2,600

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Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Net Pension Benefits Expense
Service cost benefits earned	$ 19	$ 23	$ 39	$ 46
Interest cost on projected benefit obligation	42	30	83	59
Expected return on assets	(67)	(58)	(134)	(117)
Amortization of losses	1	15	1	30
Prior service cost	8	10	11	10
Total	$ 3	$ 20	$ 0	$ 28

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Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions	6 Months Ended
	Jul. 29, 2023 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 11,232
Amounts reclassified from AOCI, net of tax	(6)
Ending balance	11,990
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(419)
Ending balance	(425)
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	300
Amounts reclassified from AOCI, net of tax	(9)
Ending balance	291
Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(23)
Amounts reclassified from AOCI, net of tax	0
Ending balance	(23)
Pension
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(696)
Amounts reclassified from AOCI, net of tax	3
Ending balance	$ (693)