Share-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock option activity during 2022:

	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value
Outstanding at January 2, 2022	9,858	$	18.44
Granted	1,562	21.40
Exercised	(414)	13.82
Forfeited and/or expired	(116)	21.93
Outstanding at January 1, 2023	10,890	$	19.00	6.60	$	41,181
Vested or expected to vest at January 1, 2023	10,770	$	18.97	6.57	$	41,084
Exercisable at January 1, 2023	7,844	$	17.73	5.69	$	39,116

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted average grant date fair value of stock options was determined using the following assumptions:

	2022		2021		2020
Risk-free interest rate	3.00	%	0.70	%	0.22	%
Expected option life in years	4.75		4.50		4.50
Expected volatility	37.82	%	38.00	%	38.02	%
Expected dividend yield	2.34	%	2.03	%	1.72	%

Schedule of Non-vested Restricted Stock Units Activity

The following table summarizes activity of Restricted Shares during 2022:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 2, 2022	1,094	$	20.09
Granted	429	20.34
Vested	(279)	20.38
Forfeited	(58)	21.65
Non-vested at January 1, 2023	1,186	$	20.03

Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions

The input variables are noted in the table below:

	2022		2021		2020
Risk-free interest rate	1.71	%	0.20	%	1.38	%
Expected life in years	3.00		3.00		3.00
Expected volatility	52.33	%	49.47	%	23.26	%
Expected dividend yield (a)	0.00	%	0.00	%	0.00	%

_______________

(a)The Monte Carlo method assumes a reinvestment of dividends.

Schedule of Non-vested Performance-based Units Activity

The following table summarizes activity of performance shares at Target during 2022:

	Performance Condition Awards			Market Condition Awards
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Non-vested at January 2, 2022	505	$	20.48	422	$	24.52
Granted	207	21.94		148	30.70
Dividend equivalent units issued (a)	14	21.67		11	27.37
Vested	(75)	17.86		(99)	21.37
Forfeited	(67)	17.86		(20)	21.38
Non-vested at January 1, 2023	584	$	21.67	462	$	27.38

_______________

(a)Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no weighted average fair value associated with dividend equivalent units.

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total share-based compensation and the related income tax benefit recognized in the Company’s consolidated statements of operations were as follows:

	Year Ended
	2022		2021		2020
Stock options	$	9,072	$	9,256	$	8,499
Restricted shares (a)	7,106		6,677		6,507
Performance shares:
Performance condition awards	4,431		2,861		782
Market condition awards	3,929		3,225		2,521
Modifications, net	—		—		621
Share-based compensation	24,538		22,019		18,930
Less: Income tax benefit	(3,043)		(2,790)		(2,958)
Share-based compensation, net of income tax benefit	$	21,495	$	19,229	$	15,972

_______________

(a)2021 and 2020 include $19 and $213, respectively, related to retention awards in connection with the Company’s G&A Realignment Plan, which is included in “Reorganization and realignment costs.” See Note 5 for further information.