|
|
Minnesota
|
|
41-0215170
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
1000 Nicollet Mall, Minneapolis, Minnesota
|
|
55403
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
||
|
||
|
||
|
||
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||
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||
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||
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||
|
|
|
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||
|
|
|
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||
|
Consolidated Statements of Operations
|
|
|
|
||||
|
Three Months Ended
|
||||||
(millions, except per share data) (unaudited)
|
April 30,
2016 |
|
|
May 2,
2015 |
|
||
Sales
|
$
|
16,196
|
|
|
$
|
17,119
|
|
Cost of sales
|
11,185
|
|
|
11,911
|
|
||
Gross margin
|
5,011
|
|
|
5,208
|
|
||
Selling, general and administrative expenses
|
3,153
|
|
|
3,514
|
|
||
Depreciation and amortization
|
546
|
|
|
540
|
|
||
Earnings from continuing operations before interest expense and income taxes
|
1,312
|
|
|
1,154
|
|
||
Net interest expense
|
415
|
|
|
155
|
|
||
Earnings from continuing operations before income taxes
|
897
|
|
|
999
|
|
||
Provision for income taxes
|
283
|
|
|
348
|
|
||
Net earnings from continuing operations
|
614
|
|
|
651
|
|
||
Discontinued operations, net of tax
|
18
|
|
|
(16
|
)
|
||
Net earnings
|
$
|
632
|
|
|
$
|
635
|
|
Basic earnings
/
(loss) per share
|
|
|
|
||||
Continuing operations
|
$
|
1.03
|
|
|
$
|
1.02
|
|
Discontinued operations
|
0.03
|
|
|
(0.03
|
)
|
||
Net earnings per share
|
$
|
1.06
|
|
|
$
|
0.99
|
|
Diluted earnings
/
(loss) per share
|
|
|
|
||||
Continuing operations
|
$
|
1.02
|
|
|
$
|
1.01
|
|
Discontinued operations
|
0.03
|
|
|
(0.03
|
)
|
||
Net earnings per share
|
$
|
1.05
|
|
|
$
|
0.98
|
|
Weighted average common shares outstanding
|
|
|
|
||||
Basic
|
598.3
|
|
|
640.9
|
|
||
Dilutive impact of share-based awards
|
5.5
|
|
|
5.5
|
|
||
Diluted
|
603.8
|
|
|
646.4
|
|
||
Antidilutive shares
|
—
|
|
|
—
|
|
Consolidated Statements of Comprehensive Income
|
|
||||||
|
Three Months Ended
|
||||||
(millions) (unaudited)
|
April 30,
2016 |
|
|
May 2,
2015 |
|
||
Net earnings
|
$
|
632
|
|
|
$
|
635
|
|
Other comprehensive income, net of tax
|
|
|
|
|
|
||
Pension and other benefit liabilities, net of taxes of $5 and $71
|
7
|
|
|
109
|
|
||
Currency translation adjustment and cash flow hedges, net of taxes of $1 and $0
|
5
|
|
|
—
|
|
||
Other comprehensive income
/
(loss)
|
12
|
|
|
109
|
|
||
Comprehensive income
|
$
|
644
|
|
|
$
|
744
|
|
Consolidated Statements of Financial Position
|
|
|
|
|
|
|
|
|
|||
(millions)
|
April 30,
2016 |
|
|
January 30,
2016 |
|
|
May 2,
2015 |
|
|||
Assets
|
(unaudited)
|
|
|
|
|
|
(unaudited)
|
|
|||
Cash and cash equivalents, including short term investments of $2,931, $3,008 and $2,073
|
$
|
4,036
|
|
|
$
|
4,046
|
|
|
$
|
2,768
|
|
Inventory
|
8,459
|
|
|
8,601
|
|
|
8,108
|
|
|||
Assets of discontinued operations
|
354
|
|
|
322
|
|
|
143
|
|
|||
Other current assets
|
1,099
|
|
|
1,161
|
|
|
2,037
|
|
|||
Total current assets
|
13,948
|
|
|
14,130
|
|
|
13,056
|
|
|||
Property and equipment
|
|
|
|
|
|
|
|
|
|||
Land
|
6,120
|
|
|
6,125
|
|
|
6,135
|
|
|||
Buildings and improvements
|
27,198
|
|
|
27,059
|
|
|
26,636
|
|
|||
Fixtures and equipment
|
5,112
|
|
|
5,347
|
|
|
5,004
|
|
|||
Computer hardware and software
|
2,437
|
|
|
2,617
|
|
|
2,394
|
|
|||
Construction-in-progress
|
242
|
|
|
315
|
|
|
576
|
|
|||
Accumulated depreciation
|
(16,060
|
)
|
|
(16,246
|
)
|
|
(14,966
|
)
|
|||
Property and equipment, net
|
25,049
|
|
|
25,217
|
|
|
25,779
|
|
|||
Noncurrent assets of discontinued operations
|
81
|
|
|
75
|
|
|
464
|
|
|||
Other noncurrent assets
|
830
|
|
|
840
|
|
|
969
|
|
|||
Total assets
|
$
|
39,908
|
|
|
$
|
40,262
|
|
|
$
|
40,268
|
|
Liabilities and shareholders’ investment
|
|
|
|
|
|
|
|
|
|||
Accounts payable
|
$
|
6,391
|
|
|
$
|
7,418
|
|
|
$
|
6,799
|
|
Accrued and other current liabilities
|
3,833
|
|
|
4,236
|
|
|
3,674
|
|
|||
Current portion of long-term debt and other borrowings
|
1,627
|
|
|
815
|
|
|
112
|
|
|||
Liabilities of discontinued operations
|
168
|
|
|
153
|
|
|
64
|
|
|||
Total current liabilities
|
12,019
|
|
|
12,622
|
|
|
10,649
|
|
|||
Long-term debt and other borrowings
|
12,596
|
|
|
11,945
|
|
|
12,585
|
|
|||
Deferred income taxes
|
841
|
|
|
823
|
|
|
1,249
|
|
|||
Noncurrent liabilities of discontinued operations
|
18
|
|
|
18
|
|
|
207
|
|
|||
Other noncurrent liabilities
|
1,889
|
|
|
1,897
|
|
|
1,404
|
|
|||
Total noncurrent liabilities
|
15,344
|
|
|
14,683
|
|
|
15,445
|
|
|||
Shareholders’ investment
|
|
|
|
|
|
|
|
|
|||
Common stock
|
49
|
|
|
50
|
|
|
53
|
|
|||
Additional paid-in capital
|
5,520
|
|
|
5,348
|
|
|
5,170
|
|
|||
Retained earnings
|
7,593
|
|
|
8,188
|
|
|
9,441
|
|
|||
Accumulated other comprehensive loss
|
|
|
|
|
|
|
|
|
|||
Pension and other benefit liabilities
|
(581
|
)
|
|
(588
|
)
|
|
(452
|
)
|
|||
Currency translation adjustment and cash flow hedges
|
(36
|
)
|
|
(41
|
)
|
|
(38
|
)
|
|||
Total shareholders’ investment
|
12,545
|
|
|
12,957
|
|
|
14,174
|
|
|||
Total liabilities and shareholders’ investment
|
$
|
39,908
|
|
|
$
|
40,262
|
|
|
$
|
40,268
|
|
Consolidated Statements of Cash Flows
|
|
|
|
||||
|
Three Months Ended
|
||||||
(millions) (unaudited)
|
April 30,
2016 |
|
|
May 2,
2015 |
|
||
Operating activities
|
|
|
|
|
|
||
Net earnings
|
$
|
632
|
|
|
$
|
635
|
|
Earnings / (losses) from discontinued operations, net of tax
|
18
|
|
|
(16
|
)
|
||
Net earnings from continuing operations
|
614
|
|
|
651
|
|
||
Adjustments to reconcile net earnings to cash provided by operations:
|
|
|
|
|
|
||
Depreciation and amortization
|
546
|
|
|
540
|
|
||
Share-based compensation expense
|
35
|
|
|
26
|
|
||
Deferred income taxes
|
12
|
|
|
18
|
|
||
Loss on debt extinguishment
|
261
|
|
|
—
|
|
||
Noncash (gains)
/
losses and other, net
|
(24
|
)
|
|
(19
|
)
|
||
Changes in operating accounts
|
|
|
|
|
|||
Inventory
|
142
|
|
|
180
|
|
||
Other assets
|
107
|
|
|
138
|
|
||
Accounts payable and accrued liabilities
|
(1,440
|
)
|
|
(757
|
)
|
||
Cash provided by operating activities—continuing operations
|
253
|
|
|
777
|
|
||
Cash (required for)
/
provided by operating activities—discontinued operations
|
(6
|
)
|
|
834
|
|
||
Cash provided by operations
|
247
|
|
|
1,611
|
|
||
Investing activities
|
|
|
|
|
|
||
Expenditures for property and equipment
|
(285
|
)
|
|
(352
|
)
|
||
Proceeds from disposal of property and equipment
|
3
|
|
|
6
|
|
||
Other investments
|
3
|
|
|
21
|
|
||
Cash required for investing activities—continuing operations
|
(279
|
)
|
|
(325
|
)
|
||
Cash provided by
investing activities—discontinued operations
|
—
|
|
|
19
|
|
||
Cash required for investing activities
|
(279
|
)
|
|
(306
|
)
|
||
Financing activities
|
|
|
|
|
|
||
Additions to long-term debt
|
1,979
|
|
|
—
|
|
||
Reductions of long-term debt
|
(863
|
)
|
|
(14
|
)
|
||
Dividends paid
|
(336
|
)
|
|
(333
|
)
|
||
Repurchase of stock
|
(898
|
)
|
|
(486
|
)
|
||
Prepayment of accelerated share repurchase
|
—
|
|
|
(120
|
)
|
||
Stock option exercises
|
140
|
|
|
206
|
|
||
Cash provided by
/
(required for) financing activities
|
22
|
|
|
(747
|
)
|
||
Net (decrease)
/
increase in cash and cash equivalents
|
(10
|
)
|
|
558
|
|
||
Cash and cash equivalents at beginning of period
|
4,046
|
|
|
2,210
|
|
||
Cash and cash equivalents at end of period
|
$
|
4,036
|
|
|
$
|
2,768
|
|
Fair Value Measurements - Recurring Basis
|
|
Fair Value at
|
||||||||||
(millions)
|
Pricing Category
|
April 30,
2016 |
|
|
January 30,
2016 |
|
|
May 2,
2015 |
|
|||
Assets
|
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|||
Short-term investments
|
Level 1
|
$
|
2,931
|
|
|
$
|
3,008
|
|
|
$
|
2,073
|
|
Other current assets
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swaps
(a)
|
Level 2
|
5
|
|
|
12
|
|
|
—
|
|
|||
Prepaid forward contracts
|
Level 1
|
35
|
|
|
32
|
|
|
35
|
|
|||
Beneficial interest asset
|
Level 3
|
16
|
|
|
19
|
|
|
35
|
|
|||
Other noncurrent assets
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swaps
(a)
|
Level 2
|
26
|
|
|
27
|
|
|
46
|
|
|||
Beneficial interest asset
|
Level 3
|
9
|
|
|
12
|
|
|
25
|
|
|||
Liabilities
|
|
|
|
|
|
|
|
|
|
|||
Other current liabilities
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swaps
(a)
|
Level 2
|
3
|
|
|
8
|
|
|
—
|
|
|||
Other noncurrent liabilities
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swaps
(a)
|
Level 2
|
—
|
|
|
—
|
|
|
20
|
|
Significant Financial Instruments not Measured at Fair Value
(a)
(millions)
|
April 30, 2016
|
|
January 30, 2016
|
|
May 2, 2015
|
|||||||||||||||
Carrying
Amount
|
|
Fair
Value
|
|
|
Carrying
Amount
|
|
Fair
Value
|
|
|
Carrying
Amount
|
|
Fair
Value
|
|
|||||||
Debt
(b)
|
$
|
13,280
|
|
$
|
14,974
|
|
|
$
|
11,859
|
|
$
|
13,385
|
|
|
$
|
11,878
|
|
$
|
13,542
|
|
Data Breach Balance Sheet Rollforward
(millions)
|
Liabilities
|
|
|
Insurance Receivable
|
|
||
Balance at January 31, 2015
|
$
|
171
|
|
|
$
|
60
|
|
Expenses incurred
(a)
|
3
|
|
|
—
|
|
||
Payments made
/
received
|
(7
|
)
|
|
(5
|
)
|
||
Balance at May 2, 2015
|
$
|
167
|
|
|
$
|
55
|
|
Balance at January 30, 2016
|
$
|
80
|
|
|
$
|
20
|
|
Expenses incurred
|
—
|
|
|
—
|
|
||
Payments made
/
received
|
(1
|
)
|
|
(4
|
)
|
||
Balance at April 30, 2016
|
$
|
79
|
|
|
$
|
16
|
|
Net Pension Benefits Expense
|
Three Months Ended
|
||||||
(millions)
|
Apr 30,
2016 |
|
|
May 2,
2015 |
|
||
Service cost
|
$
|
21
|
|
|
$
|
28
|
|
Interest cost
|
34
|
|
|
38
|
|
||
Expected return on assets
|
(64
|
)
|
|
(65
|
)
|
||
Amortization of losses
|
12
|
|
|
23
|
|
||
Amortization of prior service cost
|
(3
|
)
|
|
(3
|
)
|
||
Settlement charges
|
—
|
|
|
2
|
|
||
Total
|
$
|
—
|
|
|
$
|
23
|
|
(millions)
|
Cash Flow
Hedges
|
|
|
Currency
Translation
Adjustment
|
|
|
Pension and
Other
Benefits
|
|
|
Total
|
|
||||
January 30, 2016
|
$
|
(19
|
)
|
|
$
|
(22
|
)
|
|
$
|
(588
|
)
|
|
$
|
(629
|
)
|
Other comprehensive income before reclassifications
|
—
|
|
|
4
|
|
|
3
|
|
|
7
|
|
||||
Amounts reclassified from AOCI
|
1
|
|
(a)
|
—
|
|
|
4
|
|
(b)
|
5
|
|
||||
April 30, 2016
|
$
|
(18
|
)
|
|
$
|
(18
|
)
|
|
$
|
(581
|
)
|
|
$
|
(617
|
)
|
Business Segment Results
|
Three Months Ended
|
||||||
(millions)
|
April 30,
2016 |
|
|
May 2,
2015 |
|
||
Sales
|
$
|
16,196
|
|
|
$
|
17,119
|
|
Cost of sales
|
11,185
|
|
|
11,911
|
|
||
Gross margin
|
5,011
|
|
|
5,208
|
|
||
Selling, general, and administrative expenses
(d)
|
3,142
|
|
|
3,407
|
|
||
Depreciation and amortization
|
546
|
|
|
540
|
|
||
Segment profit
|
$
|
1,323
|
|
|
$
|
1,261
|
|
Restructuring costs
(a)(d)
|
—
|
|
|
(103
|
)
|
||
Pharmacy transaction-related costs
(b)(d)
|
(11
|
)
|
|
—
|
|
||
Data Breach-related costs
(c)(d)
|
—
|
|
|
(3
|
)
|
||
Earnings from continuing operations before interest expense and income taxes
|
1,312
|
|
|
1,154
|
|
||
Net interest expense
|
415
|
|
|
155
|
|
||
Earnings from continuing operations before income taxes
|
$
|
897
|
|
|
$
|
999
|
|
Reconciliation of Segment Assets to Total Assets
(millions)
|
April 30,
2016 |
|
|
January 30,
2016 |
|
|
May 2,
2015 |
|
|||
Segment assets
|
$
|
39,457
|
|
|
$
|
39,845
|
|
|
$
|
39,606
|
|
Assets of discontinued operations
|
435
|
|
|
397
|
|
|
607
|
|
|||
Unallocated assets
(a)
|
16
|
|
|
20
|
|
|
55
|
|
|||
Total assets
|
$
|
39,908
|
|
|
$
|
40,262
|
|
|
$
|
40,268
|
|
•
|
GAAP earnings per share were
$1.05
, including
$0.03
related to discontinued operations.
|
•
|
Adjusted earnings per share from continuing operations were
$1.29
.
|
•
|
GAAP earnings per share includes a loss on early retirement of debt of $0.26.
|
•
|
First quarter comparable sales grew
1.2
percent, driven by traffic growth of
0.3
percent and a 0.9 percent increase in average transaction amount.
|
•
|
Digital channel comparable sales increased by 23 percent, contributing
0.6
percentage points to comparable sales growth.
|
•
|
We returned $1.2 billion to shareholders in the first quarter through dividends and share repurchase.
|
Earnings Per Share from Continuing Operations
|
Three Months Ended
|
|
|
|
||||||
April 30,
2016 |
|
|
May 2,
2015 |
|
|
Change
|
|
|||
GAAP diluted earnings per share
|
$
|
1.02
|
|
|
$
|
1.01
|
|
|
0.9
|
%
|
Adjustments
|
0.27
|
|
|
0.10
|
|
|
|
|||
Adjusted diluted earnings per share
|
$
|
1.29
|
|
|
$
|
1.10
|
|
|
16.5
|
%
|
|
Three Months Ended
|
|
|
|
||||||
(dollars in millions)
|
April 30,
2016 |
|
|
May 2,
2015
(a)
|
|
|
Percent
Change
|
|
||
Sales
|
$
|
16,196
|
|
|
$
|
17,119
|
|
|
(5.4
|
)%
|
Cost of sales
|
11,185
|
|
|
11,911
|
|
|
(6.1
|
)
|
||
Gross margin
|
5,011
|
|
|
5,208
|
|
|
(3.8
|
)
|
||
SG&A expenses
(b)
|
3,142
|
|
|
3,407
|
|
|
(7.8
|
)
|
||
EBITDA
|
1,869
|
|
|
1,801
|
|
|
3.8
|
|
||
Depreciation and amortization
|
546
|
|
|
540
|
|
|
1.2
|
|
||
EBIT
|
$
|
1,323
|
|
|
$
|
1,261
|
|
|
4.9
|
%
|
Rate Analysis
|
Three Months Ended
|
||||
|
April 30,
2016 |
|
|
May 2,
2015 |
|
Gross margin rate
|
30.9
|
%
|
|
30.4
|
%
|
SG&A expense rate
|
19.4
|
|
|
19.9
|
|
EBITDA margin rate
(a)
|
11.5
|
|
|
10.5
|
|
Depreciation and amortization expense rate
|
3.4
|
|
|
3.2
|
|
EBIT margin rate
(a)
|
8.2
|
|
|
7.4
|
|
Sales by Channel
|
Three Months Ended
|
||||
|
April 30,
2016 |
|
|
May 2,
2015
(a)
|
|
Stores
|
96.5
|
%
|
|
97.2
|
%
|
Digital
|
3.5
|
|
|
2.8
|
|
Total
|
100
|
%
|
|
100
|
%
|
Comparable Sales
|
Three Months Ended
|
||||
|
April 30,
2016 |
|
|
May 2,
2015 |
|
Comparable sales change
|
1.2
|
%
|
|
2.3
|
%
|
Drivers of change in comparable sales
|
|
|
|
|
|
Number of transactions
|
0.3
|
|
|
0.9
|
|
Average transaction amount
|
0.9
|
|
|
1.4
|
|
Selling price per unit
|
2.9
|
|
|
5.1
|
|
Units per transaction
|
(2.0
|
)
|
|
(3.6
|
)
|
Contribution to Comparable Sales Change
|
Three Months Ended
|
||||
|
April 30,
2016 |
|
|
May 2,
2015 |
|
Stores channel comparable sales change
|
0.6
|
%
|
|
1.5
|
%
|
Digital channel contribution to comparable sales change
|
0.6
|
|
|
0.8
|
|
Total comparable sales change
|
1.2
|
%
|
|
2.3
|
%
|
REDcard Penetration
|
Three Months Ended
|
||||
|
April 30,
2016 |
|
|
May 2,
2015 |
|
Target Debit Card
|
13.0
|
%
|
|
12.0
|
%
|
Target Credit Cards
|
10.4
|
|
|
9.4
|
|
Total REDcard Penetration
|
23.4
|
%
|
|
21.5
|
%
|
Change in Number of Stores
|
Three Months Ended
|
||||
|
April 30,
2016 |
|
|
May 2,
2015 |
|
Beginning store count
|
1,792
|
|
|
1,790
|
|
Opened
|
1
|
|
|
5
|
|
Closed
|
—
|
|
|
—
|
|
Ending store count
|
1,793
|
|
|
1,795
|
|
Number of Stores and
Retail Square Feet |
Number of Stores
|
|
Retail Square Feet
(a)
|
||||||||||
April 30,
2016 |
|
January 30,
2016 |
|
May 2,
2015 |
|
|
April 30,
2016 |
|
January 30,
2016 |
|
May 2,
2015 |
|
|
170,000 or more sq. ft.
|
278
|
|
278
|
|
280
|
|
|
49,688
|
|
49,688
|
|
50,036
|
|
50,000 to 169,999 sq. ft.
|
1,505
|
|
1,505
|
|
1,512
|
|
|
189,677
|
|
189,677
|
|
190,316
|
|
49,999 or less sq. ft.
|
10
|
|
9
|
|
3
|
|
|
211
|
|
174
|
|
62
|
|
Total
|
1,793
|
|
1,792
|
|
1,795
|
|
|
239,576
|
|
239,539
|
|
240,414
|
|
Adjusted EPS
|
|
Three Months Ended
|
||||||||||||||||||||||
|
|
April 30, 2016
|
|
May 2, 2015
|
||||||||||||||||||||
(millions, except per share data)
|
|
Pretax
|
|
|
Net of Tax
|
|
|
Per Share Amounts
|
|
|
Pretax
|
|
|
Net of Tax
|
|
|
Per Share Amounts
|
|
||||||
GAAP diluted earnings per share from continuing operations
|
|
|
|
|
|
$
|
1.02
|
|
|
|
|
|
|
$
|
1.01
|
|
||||||||
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss on early retirement of debt
|
|
$
|
261
|
|
|
$
|
159
|
|
|
$
|
0.26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring costs
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
64
|
|
|
0.10
|
|
||||||
Other
(b)
|
|
11
|
|
|
7
|
|
|
0.01
|
|
|
3
|
|
|
2
|
|
|
—
|
|
||||||
Resolution of income tax matters
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||||
Adjusted diluted earnings per share from continuing operations
|
|
|
|
|
|
$
|
1.29
|
|
|
|
|
|
|
$
|
1.10
|
|
After-Tax Return on Invested Capital
|
|
|
||||||||||
|
|
|
|
|
||||||||
Numerator
|
|
Trailing Twelve Months
|
|
|
||||||||
(dollars in millions)
|
|
April 30,
2016 |
|
|
May 2,
2015 |
|
|
|
||||
Earnings from continuing operations before interest expense and income taxes
|
|
$
|
5,688
|
|
|
$
|
4,667
|
|
|
|
||
+ Operating lease interest
(a)(b)
|
|
82
|
|
|
90
|
|
|
|
||||
Adjusted earnings from continuing operations before interest expense and income taxes
|
|
5,770
|
|
|
4,756
|
|
|
|
||||
- Income taxes
(c)
|
|
1,840
|
|
|
1,575
|
|
|
|
||||
Net operating profit after taxes
|
|
$
|
3,930
|
|
|
$
|
3,181
|
|
|
|
Denominator
(dollars in millions)
|
|
April 30,
2016 |
|
|
May 2,
2015 |
|
|
May 3,
2014 |
|
|||
Current portion of long-term debt and other borrowings
|
|
$
|
1,627
|
|
|
$
|
112
|
|
|
$
|
1,466
|
|
+ Noncurrent portion of long-term debt
|
|
12,596
|
|
|
12,585
|
|
|
11,315
|
|
|||
+ Shareholders' equity
|
|
12,545
|
|
|
14,174
|
|
|
16,486
|
|
|||
+ Capitalized operating lease obligations
(b)(d)
|
|
1,367
|
|
|
1,495
|
|
|
1,587
|
|
|||
- Cash and cash equivalents
|
|
4,036
|
|
|
2,768
|
|
|
677
|
|
|||
- Net assets of discontinued operations
|
|
249
|
|
|
335
|
|
|
4,573
|
|
|||
Invested capital
|
|
$
|
23,850
|
|
|
$
|
25,263
|
|
|
$
|
25,604
|
|
Average invested capital
(e)
|
|
$
|
24,556
|
|
|
$
|
25,434
|
|
|
|
After-tax return on invested capital
(f)
|
|
16.0
|
%
|
|
12.5
|
%
|
|
|
Reconciliation of Capitalized Operating Leases
|
|
Trailing Twelve Months
|
||||||||||||
(dollars in millions)
|
|
April 30,
2016 |
|
|
May 2,
2015 |
|
|
May 3,
2014 |
|
|||||
Total rent expense
|
|
$
|
171
|
|
|
$
|
187
|
|
|
$
|
199
|
|
||
Capitalized operating lease obligations (total rent expense x 8)
|
|
1,367
|
|
|
1,495
|
|
|
1,587
|
|
|||||
Operating lease interest (capitalized operating lease obligations x 6%)
|
|
82
|
|
|
90
|
|
|
n/a
|
|
Credit Ratings
|
Moody’s
|
Standard and Poor’s
|
Fitch
|
Long-term debt
|
A2
|
A
|
A-
|
Commercial paper
|
P-1
|
A-1
|
F2
|
Period
|
Total Number
of Shares
Purchased
|
|
|
Average
Price
Paid per
Share
|
|
|
Total Number of
Shares Purchased
as Part of the
Current Program
|
|
|
Dollar Value of
Shares that May
Yet Be Purchased
Under the Program
|
|
|
||
January 31, 2016 through February 27, 2016
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
3,249,514
|
|
|
$
|
70.20
|
|
|
3,249,514
|
|
|
3,193,382,756
|
|
|
|
February 28, 2016 through April 2, 2016
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
4,256,025
|
|
|
81.30
|
|
|
4,256,025
|
|
|
2,847,374,831
|
|
|
||
April 3, 2016 through April 30, 2016
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
3,891,877
|
|
|
81.98
|
|
|
3,891,877
|
|
|
2,528,305,154
|
|
|
||
Total
|
11,397,416
|
|
|
$
|
78.37
|
|
|
11,397,416
|
|
|
$
|
2,528,305,154
|
|
|
|
|
TARGET CORPORATION
|
||
|
|
||
|
|
||
Dated: May 25, 2016
|
By:
|
/s/ Cathy R. Smith
|
|
|
|
Cathy R. Smith
|
|
|
|
Executive Vice President and
|
|
|
|
Chief Financial Officer
|
|
|
|
(Duly Authorized Officer and
|
|
|
|
Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Robert M. Harrison
|
|
|
|
|
Robert M. Harrison
|
|
|
|
Senior Vice President, Chief Accounting Officer
|
|
|
|
and Controller
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
|
|
Description
|
|
Manner of Filing
|
|
|
|
|
|
(3)A
|
|
Amended and Restated Articles of Incorporation (as amended through June 9, 2010)
|
|
Incorporated by Reference
|
|
|
|
|
|
(3)B
|
|
Bylaws (as amended through November 11, 2015)
|
|
Incorporated by Reference
|
|
|
|
|
|
(10)C
|
|
Target Corporation SPP I (2016 Plan Statement) (as amended and restated effective April 3, 2016)
|
|
Filed Electronically
|
|
|
|
|
|
(10)D
|
|
Target Corporation SPP II (2016 Plan Statement) (as amended and restated effective April 3, 2016)
|
|
Filed Electronically
|
|
|
|
|
|
(10)G
|
|
Target Corporation Officer EDCP (2016 Plan Statement) (as amended and restated effective April 3, 2016)
|
|
Filed Electronically
|
|
|
|
|
|
(10)J
|
|
Target Corporation Officer Income Continuance Policy Statement (as amended and restated effective April 3, 2016)
|
|
Filed Electronically
|
|
|
|
|
|
(10)NN
|
|
Amendment to Target Corporation SPP III (2014 Plan Statement) (effective April 3, 2016)
|
|
Filed Electronically
|
|
|
|
|
|
(12)
|
|
Statements of Computations of Ratios of Earnings to Fixed Charges
|
|
Filed Electronically
|
|
|
|
|
|
(31)A
|
|
Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed Electronically
|
|
|
|
|
|
(31)B
|
|
Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed Electronically
|
|
|
|
|
|
(32)A
|
|
Certification of the Chief Executive Officer As Adopted Pursuant to 18 U.S.C. Section 1350 Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Filed Electronically
|
|
|
|
|
|
(32)B
|
|
Certification of the Chief Financial Officer As Adopted Pursuant to 18 U.S.C. Section 1350 Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Filed Electronically
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
Filed Electronically
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
Filed Electronically
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
Filed Electronically
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
Filed Electronically
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
Filed Electronically
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Filed Electronically
|
SECTION 1 INTRODUCTION; DEFINITIONS
|
1
|
|
|
|
|
1.1 History
|
1
|
|
1.2 Definitions
|
1
|
|
1.2.1 Actuarial Equivalent
|
1
|
|
1.2.2 Affiliate
|
1
|
|
1.2.3 Beneficiary
|
1
|
|
1.2.4 Board
|
1
|
|
1.2.5 Change-in-Control
|
1
|
|
1.2.6 Code
|
3
|
|
1.2.7 [Intentionally left blank]
|
3
|
|
1.2.8 Company
|
3
|
|
1.2.9 Officer
|
3
|
|
1.2.10 Officer EDCP
|
3
|
|
1.2.11 Participant
|
3
|
|
1.2.12 Participating Employer
|
3
|
|
1.2.13 Pension Plan
|
3
|
|
1.2.14 Plan
|
3
|
|
1.2.15 Plan Administrator
|
3
|
|
1.2.16 Plan Rules
|
3
|
|
1.2.17 Plan Statement
|
4
|
|
1.2.18 SPP IV
|
4
|
|
1.2.19 Termination of Employment
|
4
|
|
1.2.20 Trust
|
4
|
|
|
|
|
SECTION 2 PARTICIPATION
|
5
|
|
2.1 Eligibility
|
5
|
|
2.2 Termination of Participation
|
5
|
|
2.3 Rehire
|
5
|
|
2.4 Effect on Employment
|
5
|
|
|
|
|
SECTION 3 BENEFIT - TRADITIONAL FINAL AVERAGE PAY FORMULA
|
7
|
|
3.1 Amount of Pension
|
7
|
|
3.2 Rehire
|
7
|
|
|
|
|
SECTION 4 BENEFIT - PERSONAL PENSION ACCOUNT
|
8
|
|
4.1 Amount of Pension
|
8
|
|
4.2 Rehire
|
8
|
|
|
|
|
SECTION 5 VESTING
|
9
|
|
5.1 General Rule
|
9
|
|
5.2 Rehire
|
9
|
|
5.3 Transfers to Officer EDCP
|
9
|
|
|
|
|
SECTION 6 TRANSFERS
|
10
|
|
6.1 Benefit Distributions
|
10
|
|
6.2 Transfers to Officer EDCP
|
10
|
|
|
|
|
SECTION 7 NATURE OF INTEREST
|
11
|
|
7.1 Unfunded Obligation
|
11
|
|
7.2 Spendthrift Provision
|
11
|
|
7.3 Compensation Recovery (Recoupment)
|
11
|
|
|
|
|
SECTION 8 ADOPTION, AMENDMENT AND TERMINATION
|
12
|
|
8.1 Adoption
|
12
|
|
8.2 Amendment
|
12
|
|
8.3 Termination
|
12
|
|
|
|
|
SECTION 9 CLAIM PROCEDURES
|
14
|
|
9.1 Claim Procedures
|
14
|
|
9.2 Rules and Regulations
|
15
|
|
9.3 Limitations and Exhaustion
|
16
|
|
|
|
|
SECTION 10 PLAN ADMINISTRATION
|
18
|
|
10.1 Plan Administration
|
18
|
|
10.2 Conflict of Interest
|
18
|
|
10.3 Service of Process
|
19
|
|
10.4 Choice of Law
|
19
|
|
10.5 Responsibility for Delegate
|
19
|
|
10.6 Expenses
|
19
|
|
10.7 Errors in Computations
|
19
|
|
10.8 Indemnification
|
19
|
|
10.9 Notice
|
19
|
|
|
|
|
SECTION 11 CONSTRUCTION
|
20
|
|
11.1 ERISA Status
|
20
|
|
11.2 IRC Status
|
20
|
|
11.3 Rules of Document Construction
|
20
|
|
11.4 References to Laws
|
20
|
|
11.5 Appendices
|
20
|
|
(a)
|
Individuals who are Continuing Directors cease for any reason to constitute 50% or more of the directors of the Company; or
|
(b)
|
30% or more of the outstanding voting power of the Voting Stock of the Company is acquired or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by any Person, other than an entity resulting from a Business Combination in which clauses (x) and (y) of Section 1.2.5(c) apply; or
|
(c)
|
the consummation of a merger or consolidation of the Company with or into another entity, a statutory share exchange, a sale or other disposition (in one transaction or a series of transactions) of all or substantially all of the Company’s assets or a similar business combination (each, a “Business Combination”), in each case unless, immediately following such Business Combination, (x) all or substantially all of the beneficial owners (within the meaning of Rule 13d-3 under the Exchange Act) of the Company’s Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the voting power of the then outstanding shares of voting stock (or comparable voting equity interests) of the surviving or acquiring entity resulting from such Business Combination (including such beneficial ownership of an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), in substantially the same proportions (as compared to the other beneficial owners of the Company’s Voting Stock immediately prior to such Business Combination) as their beneficial ownership of the Company’s Voting Stock immediately prior to such Business Combination, and (y) no Person beneficially owns, directly or indirectly, 30% or more of the voting power of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity (other than a direct or indirect parent entity of the surviving or acquiring entity, that, after giving effect to the Business Combination, beneficially owns, directly or indirectly, 100% of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity); or
|
(d)
|
approval by the shareholders of a definitive agreement or plan to liquidate or dissolve the Company.
|
(a)
|
For purposes of determining entitlement to or the amount of benefits under the Plan, “Termination of Employment” means a severance of a Participant’s employment relationship with each Participating Employer and all Affiliates, for any reason.
|
(b)
|
For purposes of determining when a distribution will be made under the Plan, a “Termination of Employment” will be deemed to occur if, based on the relevant facts and circumstances to the Participant, the Participating Employer, all Affiliates and Participant reasonably anticipate that the level of bona fide future services to be performed by the Participant for the Participating Employer and all Affiliates will permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36-month period.
|
(c)
|
A bona fide leave of absence that is six months or less, or during which an individual retains a reemployment right, will not cause a Termination of Employment. In the case of a leave of absence without a right of reemployment that exceeds the time periods described in this paragraph, a Termination of Employment will be deemed to occur once the leave of absence exceeds six months.
|
(d)
|
Notwithstanding the foregoing, a Termination of Employment shall not occur unless such termination also qualifies as a “separation from service,” as defined under Code section 409A and related guidance thereunder.
|
2.1
|
Eligibility.
|
(a)
|
is an active participant in the Pension Plan; and
|
(b)
|
is an Officer.
|
(a)
|
A Participant with a Pension Plan benefit determined solely by the traditional final average pay formula will have his or her benefit under this Plan determined pursuant to Section 3.
|
(b)
|
A Participant with a Pension Plan benefit determined solely by the personal pension account formula will have his or her benefit under this Plan determined pursuant to Section 4.
|
(c)
|
A Participant with a Pension Plan benefit determined in part by the traditional final average pay formula and in part by the personal pension account formula will have his or her benefit under this Plan determined pursuant to Section 3 with respect to the period earning a traditional final average pay benefit under the Pension Plan, and Section 4 with respect to the period earning a personal pension account benefit under the Pension Plan.
|
2.4
|
Effect on Employment.
|
3.1
|
Amount of Pension.
|
(a)
|
The monthly pension benefit of the Participant transferred to this Plan as determined under Section 3 of SPP IV, and
|
(b)
|
The excess, if any, of:
|
(i)
|
The monthly pension benefit of the Participant as determined under the Pension Plan, based on the “traditional formula” (Article VI of the Pension Plan) if such formula were applied:
|
(A)
|
without regard to the maximum benefit limits imposed by Code section 415;
|
(B)
|
without regard to the maximum compensation limits imposed by Code section 401(a)(17); and
|
(C)
|
without regard to the alternative benefit formula of Sections 4.6(a)(3) and 4.6(b)(2) of the Pension Plan.
|
(ii)
|
The sum of:
|
(A)
|
The monthly pension benefit of the Participant as determined under the Pension Plan, based on the “traditional formula” (Article VI of the Pension Plan); and
|
(B)
|
The monthly pension benefit of the Participant transferred to this Plan as determined under Section 3 of SPP IV.
|
4.1
|
Amount of Pension
|
(a)
|
The pension benefit of the Participant transferred to this Plan as determined under Section 4 of SPP IV, and
|
(b)
|
the excess, if any, of:
|
(i)
|
The amount that would have been credited each quarter (including both “pay credits” and “interest credits”) to the Participant’s “personal pension account” under the Pension Plan (Article VII of the Pension Plan), if such account were applied:
|
(A)
|
without regard to the maximum benefit limits imposed by Code section 415; and
|
(B)
|
without regard to the maximum compensation limits imposed by Code section 401(a)(17).
|
(ii)
|
The sum of:
|
(A)
|
The amount of the credits actually made to the Participant’s “personal pension account” under the Pension Plan; and
|
(B)
|
The pension benefit of the Participant transferred to this Plan as determined under Section 4 of SPP IV.
|
6.1
|
Benefit Distributions.
|
(a)
|
On or about the April 30 (or the immediately preceding business day) immediately following the calendar year in which a Participant is first eligible to participate in this Plan and has a vested benefit, a Participant will have his or her vested benefit that is determined under this Plan transferred to the Officer EDCP. The transfer will be an amount equal to the actuarial lump sum present value on March 31 (or the immediately preceding business day) for the Participant’s SPP Benefit accrued through the preceding December 31. In the case of a Participant who is an executive officer, such transfer will be made and determined on or about the last business day prior to the end of the Company’s fiscal year.
|
(b)
|
Notwithstanding the foregoing, in the case of a Termination of Employment as defined under Section 1.2.19(a) or a Plan termination upon a Change-in-Control under Section 8.3.2 prior to the date in Section 6.2.1(a), the transfer will be made within 60 days following such event.
|
(a)
|
Any portion of the Participant’s benefit resulting from the receipt of compensation that is subject to recovery under the Recoupment Policy may be forfeited and, in such event, a corresponding adjustment will be made to the Participant’s benefit under this Plan.
|
(b)
|
If a Participant (or his or her Beneficiary) is entitled to receive a distribution under this Plan and the Participant is subject to a claim for recovery under the Recoupment Policy, then the Company may, subject to any limitations under Code section 409A, retain all or any portion of the Participant’s (or the Beneficiary’s) taxable distribution, net of state, federal or foreign tax withholding, to satisfy such claim.
|
(a)
|
To the extent necessary or reasonable to comply with any changes in law, the Board may at any time terminate this Plan, provided such termination satisfies the requirements of Code section 409A.
|
(b)
|
To the extent that a Participant’s benefit under the Plan will be immediately included in the income of the Participant, as determined by a court of competent jurisdiction or the Internal Revenue Service, to the extent permitted under Code section 409A, the Board may terminate this Plan,
in whole or in part, as it relates to the impacted Participant.
|
(a)
|
The Plan will be terminated effective as of the first date on which there has occurred both (i) a Change-in-Control under Section 1.2.5, and (ii) a funding of the Trust on account of such Change-in-Control (referred to herein as the “Plan termination effective date”) unless, prior to such Plan termination effective date,
|
(b)
|
The determination by the Board under paragraph (a) constitutes a determination that such termination will satisfy the requirements of Code section 409A, including an agreement by the Company that it will take such additional action or refrain from taking such action as may be necessary to satisfy the requirements necessary to terminate and liquidate the Plan under paragraph (c) below.
|
(c)
|
In the event the Board does not affirmatively determine not to terminate the Plan as provided in paragraph (a), such termination shall be subject to either (i) or (ii), as follows:
|
(i)
|
If the Change-in-Control qualifies as a “change in control event” for purposes of Code section 409A, transfer of all amounts under the Plan will be accelerated and distributed under the Officer EDCP.
|
(ii)
|
If the Change-in-Control does not
qualify as a “change in control event” for purposes of Code section 409A, transfer of all amounts under the Plan will be accelerated and distributed under the Officer EDCP.
|
(a)
|
If the claim is denied in whole or in part, the Plan Administrator shall notify the claimant of the adverse benefit determination within ninety (90) days after receipt of the claim.
|
(b)
|
The ninety (90) day period for making the claim determination may be extended for ninety (90) days if the Plan Administrator determines that special circumstances require an extension of time for determination of the claim, provided that the Plan Administrator notifies the claimant, prior to the expiration of the initial ninety (90) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.
|
(a)
|
the specific reasons for the adverse determination,
|
(b)
|
references to the specific provisions of the Plan Statement (or other applicable Plan document) on which the adverse determination is based,
|
(c)
|
a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary, and
|
(d)
|
a description of the claim and review procedures, including the time limits applicable to such procedure, and a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.
|
(a)
|
The sixty (60) day period for deciding the claim on review may be extended for sixty (60) days if the Plan Administrator determines that special circumstances require an extension of time for determination of the claim, provided that the Plan Administrator notifies the claimant, prior to the expiration of the initial sixty (60) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.
|
(b)
|
In the event that the time period is extended due to a claimant’s failure to submit information necessary to decide a claim on review, the claimant shall have sixty (60) days within which to provide the necessary information and the period for making the claim determination on review shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information or, if earlier, the expiration of sixty (60) days.
|
(c)
|
The Plan Administrator’s review of a denied claim shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
|
(a)
|
the specific reasons for the denial,
|
(b)
|
references to the specific provisions of the Plan Statement (or other applicable Plan document) on which the adverse determination is based,
|
(c)
|
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits,
|
(d)
|
a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain information about such procedures, and
|
(e)
|
a statement of the claimant’s right to bring an action under ERISA section 502(a).
|
(a)
|
No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made in accordance with the established claim procedures. The Plan Administrator may require that any claim for benefits and any request
|
(b)
|
All decisions on claims and on requests for a review of denied claims shall be made by the Plan Administrator unless delegated as provided for in the Plan, in which case references in this Section 9 to the Plan Administrator shall be treated as references to the Plan Administrator’s delegate.
|
(c)
|
Claimants may be represented by a lawyer or other representative at their own expense, but the Plan Administrator reserves the right to require the claimant to furnish written authorization and establish reasonable procedures for determining whether an individual has been authorized to act on behalf of a claimant. A claimant’s representative shall be entitled to copies of all notices given to the claimant.
|
(d)
|
The decision of the Plan Administrator on a claim and on a request for a review of a denied claim may be provided to the claimant in electronic form instead of in writing at the discretion of the Plan Administrator.
|
(e)
|
In connection with the review of a denied claim, the claimant or the claimant’s representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits.
|
(f)
|
The time period within which a benefit determination will be made shall begin to run at the time a claim or request for review is filed in accordance with the claims procedures, without regard to whether all the information necessary to make a benefit determination accompanies the filing.
|
(g)
|
The claims and review procedures shall be administered with appropriate safeguards so that benefit claim determinations are made in accordance with governing plan documents and, where appropriate, the plan provisions have been applied consistently with respect to similarly situated claimants.
|
(h)
|
The Plan Administrator may, in its discretion, rely on any applicable statute of limitation or deadline as a basis for denial of any claim.
|
(a)
|
the date the Participant knew (or reasonably should have known) of the general nature of the dispute giving rise to the action, or
|
(b)
|
the date the claim was denied.
|
(a)
|
no Participant or Beneficiary shall be permitted to litigate any such matter unless a timely claim has been filed under these administrative procedures and these administrative procedures have been exhausted, and
|
(b)
|
determinations by the Plan Administrator (including determinations as to whether the claim was timely filed) shall be afforded the maximum deference permitted by law.
|
10.1
|
Plan Administration.
|
(a)
|
Appoint one or more individuals or entities and delegate such of his or her powers and duties as he or she deems desirable to any individual or entity, in which case every reference herein made to Plan Administrator shall be deemed to mean or include the individual or entity as to matters within their jurisdiction. Such individual may be an officer or other employee of a Participating Employer or Affiliate, provided that any delegation to an employee of a Participating Employer or Affiliate will automatically terminate when he or she ceases to be an employee. Any delegation may be rescinded at any time; and
|
(b)
|
Select, employ and compensate from time to time such agents or consultants as the Plan Administrator may deem necessary or advisable in carrying out its duties and to rely on the advice and information provided by them.
|
SECTION 1 INTRODUCTION; DEFINITIONS
|
|
1
|
|
|
1.1 History
|
|
1
|
|
|
1.2 Definitions
|
|
1
|
|
|
1.2.1 Actuarial Equivalent
|
1
|
|
|
|
1.2.2 Affiliate
|
1
|
|
|
|
1.2.3 Beneficiary
|
1
|
|
|
|
1.2.4 Board
|
1
|
|
|
|
1.2.5 Change-in-Control
|
1
|
|
|
|
1.2.6 Code
|
3
|
|
|
|
1.2.7 [Intentionally left blank.]
|
3
|
|
|
|
1.2.8 Company
|
3
|
|
|
|
1.2.9 Officer
|
3
|
|
|
|
1.2.10 Officer EDCP
|
3
|
|
|
|
1.2.11 Participant
|
3
|
|
|
|
1.2.12 Participating Employer
|
3
|
|
|
|
1.2.13 Pension Plan
|
3
|
|
|
|
1.2.14 Plan
|
3
|
|
|
|
1.2.15 Plan Administrator
|
3
|
|
|
|
1.2.16 Plan Rules
|
3
|
|
|
|
1.2.17 Plan Statement
|
3
|
|
|
|
1.2.18 SPP V
|
3
|
|
|
|
1.2.19 Termination of Employment
|
4
|
|
|
|
1.2.20 Trust
|
4
|
|
|
|
|
|
|
||
SECTION 2 PARTICIPATION
|
|
5
|
|
|
2.1 Eligibility
|
|
5
|
|
|
2.2 Termination of Participation
|
|
5
|
|
|
2.3 Rehire
|
|
5
|
|
|
2.4 Effect on Employment
|
|
5
|
|
|
|
|
|
||
SECTION 3 BENEFIT - TRADITIONAL FINAL AVERAGE PAY FORMULA
|
|
7
|
|
|
3.1 Amount of Pension
|
|
7
|
|
|
3.2 Rehire
|
|
8
|
|
|
|
|
|
||
SECTION 4 BENEFIT - PERSONAL PENSION ACCOUNT
|
|
9
|
|
|
4.1 Amount of Pension
|
|
9
|
|
|
4.2 Rehire
|
|
10
|
|
|
|
|
|
||
SECTION 5 VESTING
|
|
11
|
|
|
5.1 General Rule
|
|
11
|
|
|
5.2 Rehire
|
|
11
|
|
|
5.3 Transfers to Officer EDCP
|
|
11
|
|
SECTION 6 TRANSFERS
|
|
12
|
|
6.1 Benefit Distributions
|
|
12
|
|
6.2 Transfers to Officer EDCP
|
|
12
|
|
|
|
|
|
SECTION 7 NATURE OF INTEREST
|
|
13
|
|
7.1 Unfunded Obligation
|
|
13
|
|
7.2 Spendthrift Provision
|
|
13
|
|
7.3 Compensation Recovery (Recoupment)
|
|
13
|
|
|
|
|
|
SECTION 8 ADOPTION, AMENDMENT AND TERMINATION
|
|
14
|
|
8.1 Adoption
|
|
14
|
|
8.2 Amendment
|
|
14
|
|
8.3 Termination
|
|
14
|
|
|
|
|
|
SECTION 9 CLAIM PROCEDURES
|
|
16
|
|
9.1 Claim Procedures
|
|
16
|
|
9.2 Rules and Regulations
|
|
18
|
|
9.3 Limitations and Exhaustion
|
|
18
|
|
|
|
|
|
SECTION 10 PLAN ADMINISTRATION
|
|
20
|
|
10.1 Plan Administration
|
|
20
|
|
10.2 Conflict of Interest
|
|
20
|
|
10.3 Service of Process
|
|
21
|
|
10.4 Choice of Law
|
|
21
|
|
10.5 Responsibility for Delegate
|
|
21
|
|
10.6 Expenses
|
|
21
|
|
10.7 Errors in Computations
|
|
21
|
|
10.8 Indemnification
|
|
21
|
|
10.9 Notice
|
|
21
|
|
|
|
|
|
SECTION 11 CONSTRUCTION
|
|
22
|
|
11.1 ERISA Status
|
|
22
|
|
11.2 IRC Status
|
|
22
|
|
11.3 Rules of Document Construction
|
|
22
|
|
11.4 References to Laws
|
|
22
|
|
11.5 Appendices
|
|
22
|
|
(a)
|
Individuals who are Continuing Directors cease for any reason to constitute 50% or more of the directors of the Company; or
|
(b)
|
30% or more of the outstanding voting power of the Voting Stock of the Company is acquired or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by any Person, other than an entity resulting from a Business Combination in which clauses (x) and (y) of Section 1.2.5(c) apply; or
|
(c)
|
the consummation of a merger or consolidation of the Company with or into another entity, a statutory share exchange, a sale or other disposition (in one transaction or a series of transactions) of all or substantially all of the Company’s assets or a similar business combination (each, a “Business Combination”), in each case unless, immediately following such Business Combination, (x) all or substantially all of the beneficial owners (within the meaning of Rule 13d-3 under the Exchange Act) of the Company’s Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the voting power of the then outstanding shares of voting stock (or comparable voting equity interests) of the surviving or acquiring entity resulting from such Business Combination (including such beneficial ownership of an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), in substantially the same proportions (as compared to the other beneficial owners of the Company’s Voting Stock immediately prior to such Business Combination) as their beneficial ownership of the Company’s Voting Stock immediately prior to such Business Combination, and (y) no Person beneficially owns, directly or indirectly, 30% or more of the voting power of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity (other than a direct or indirect parent entity of the surviving or acquiring entity, that, after giving effect to the Business Combination, beneficially owns, directly or indirectly, 100% of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity); or
|
(d)
|
approval by the shareholders of a definitive agreement or plan to liquidate or dissolve the Company.
|
(a)
|
For purposes of determining entitlement to or the amount of benefits under the Plan, “Termination of Employment” means a severance of a Participant’s employment relationship with each Participating Employer and all Affiliates, for any reason.
|
(b)
|
For purposes of determining when a distribution will be made under the Plan, a “Termination of Employment” will be deemed to occur if, based on the relevant facts and circumstances to the Participant, the Participating Employer, all Affiliates and Participant reasonably anticipate that the level of bona fide future services to be performed by the Participant for the Participating Employer and all Affiliates will permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36-month period.
|
(c)
|
A bona fide leave of absence that is six months or less, or during which an individual retains a reemployment right, will not cause a Termination of Employment. In the case of a leave of absence without a right of reemployment that exceeds the time periods described in this paragraph, a Termination of Employment will be deemed to occur once the leave of absence exceeds six months.
|
(d)
|
Notwithstanding the foregoing, a Termination of Employment shall not occur unless such termination also qualifies as a “separation from service,” as defined under Code section 409A and related guidance thereunder.
|
2.1
|
Eligibility.
|
(a)
|
is an active participant in the Pension Plan; and
|
(b)
|
is an Officer.
|
(a)
|
A Participant with a Pension Plan benefit determined solely by the traditional final average pay formula will have his or her benefit under this Plan determined pursuant to Section 3.
|
(b)
|
A Participant with a Pension Plan benefit determined solely by the traditional final average pay formula will have his or her benefit under this Plan determined pursuant to Section 3.
|
(c)
|
A Participant with a Pension Plan benefit determined in part by the traditional final average pay formula and in part by the personal pension account formula will have his or her benefit under this Plan determined pursuant to Section 3 with respect to the period earning a traditional final average pay benefit under the Pension Plan, and Section 4 with respect to the period earning a personal pension account benefit under the Pension Plan.
|
2.4
|
Effect on Employment.
|
3.1
|
Amount of Pension.
|
(a)
|
The monthly pension benefit of the Participant transferred to this Plan as determined under Section 3 of SPP V, and
|
(b)
|
The excess, if any, of:
|
(i)
|
The monthly pension benefit of the Participant as determined under the Pension Plan, based on the “traditional formula” (Article VI of the Pension Plan) if such formula were applied:
|
(A)
|
without regard to the maximum benefit limits imposed by Code section 415;
|
(B)
|
without regard to the maximum compensation limits imposed by Code section 401(a)(17);
|
(C)
|
without regard to the alternative benefit formula of Sections 4.6(a)(3) and 4.6(b)(2) of the Pension Plan; and
|
(D)
|
as if the definition of “certified earnings” for a plan year included compensation that would have been paid in the plan year in the absence of the Participant’s election to defer payment of the compensation to a later date pursuant to the provisions of a deferred compensation.
|
(ii)
|
The sum of:
|
(A)
|
The monthly pension benefit of the Participant as determined under the Pension Plan, based on the “traditional formula” (Article VI of the Pension Plan);
|
(B)
|
The pension benefit of the Participant transferred to this Plan as determined under Section 3 of SPP V, and
|
(C)
|
The pension benefit of the Participant as determined under Section 3 of the SPP I.
|
4.1
|
Amount of Pension.
|
(a)
|
The pension benefit of the Participant transferred to this Plan as determined under Section 4 of SPP V, and
|
(b)
|
the excess, if any, of:
|
(i)
|
The amount that would have been credited each calendar quarter (including both “pay credits” and “interest credits”) to the Participant’s “personal pension account” under the Pension Plan (Article VII of the Pension Plan), if such account were applied:
|
(A)
|
without regard to the maximum benefit limits imposed by Code section 415,
|
(B)
|
without regard to the maximum compensation limits imposed by Code section 401(a)(17), and
|
(C)
|
as if the definition of “certified earnings” for a plan year included compensation that would have been paid in the plan year in the absence of the Participant’s election to defer payment of the compensation to a later date pursuant to the provisions of a deferred compensation.
|
(ii)
|
The sum of:
|
(A)
|
The amount of the credits actually made to the Participant’s personal pension account under the Pension Plan;
|
(B)
|
The pension benefit of the Participant transferred to this Plan as determined under Section 4 of SPP V; and
|
(C)
|
The pension benefit of the Participant as determined under Section 4 of the SPP I.
|
6.1
|
Benefit Distributions.
|
(a)
|
On or about the April 30 (or the immediately preceding business day) immediately following the calendar year in which a Participant is first eligible to participate in this Plan and has a vested benefit, a Participant will have his or her vested benefit that is determined under this Plan transferred to the Officer EDCP. The transfer will be an amount equal to the actuarial lump sum present value on March 31 (or the immediately preceding business day) for the Participant’s SPP Benefit accrued through the preceding December 31. In the case of a Participant who is an executive officer, such transfer will be made and determined on or about the last business day prior to the end of the Company’s fiscal year.
|
(b)
|
Notwithstanding the foregoing, in the case of a Termination of Employment as defined under Section 1.2.19(a) or a Plan termination upon a Change-in-Control under Section 8.3.2 prior to the date in Section 6.2.1(a), the transfer will be made within 60 days following such event.
|
(a)
|
Any portion of the Participant’s benefit resulting from the receipt of compensation that is subject to recovery under the Recoupment Policy may be forfeited and, in such event, a corresponding adjustment will be made to the Participant’s benefit under this Plan.
|
(b)
|
If a Participant (or his or her Beneficiary) is entitled to receive a distribution under this Plan and the Participant is subject to a claim for recovery under the Recoupment Policy, then the Company may, subject to any limitations under Code section 409A, retain all or any portion of the Participant’s (or the Beneficiary’s) taxable distribution, net of state, federal or foreign tax withholding, to satisfy such claim.
|
(a)
|
To the extent necessary or reasonable to comply with any changes in law, the Board may at any time terminate this Plan, provided such termination satisfies the requirements of Code section 409A.
|
(b)
|
To the extent that a Participant’s benefit under the Plan will be immediately included in the income of the Participant, as determined by a court of competent jurisdiction or the Internal Revenue Service, to the extent permitted under Code section 409A, the Board may terminate this Plan,
in whole or in part, as it relates to the impacted Participant.
|
(a)
|
The Plan will be terminated effective as of the first date on which there has occurred both (i) a Change-in-Control under Section 1.2.5, and (ii) a funding of the Trust on account of such Change-in-Control (referred to herein as the “Plan termination effective date”) unless, prior to such Plan termination effective date,
|
(b)
|
The determination by the Board under paragraph (a) constitutes a determination that such termination will satisfy the requirements of Code section 409A, including an agreement by the Company that it will take such additional action or refrain from taking such action as may be necessary to satisfy the requirements necessary to terminate and liquidate the Plan under paragraph (c) below.
|
(c)
|
In the event the Board does not affirmatively determine not to terminate the Plan as provided in paragraph (a), such termination shall be subject to either (i) or (ii), as follows:
|
(i)
|
If the Change-in-Control qualifies as a “change in control event” for purposes of Code section 409A, transfer of all amounts under the Plan will be accelerated and distributed under the Officer EDCP.
|
(ii)
|
If the Change-in-Control does not
qualify as a “change in control event” for purposes of Code section 409A, transfer of all amounts under the Plan will be accelerated and distributed under the Officer EDCP.
|
(a)
|
If the claim is denied in whole or in part, the Plan Administrator shall notify the claimant of the adverse benefit determination within ninety (90) days after receipt of the claim.
|
(b)
|
The ninety (90) day period for making the claim determination may be extended for ninety (90) days if the Plan Administrator determines that special circumstances require an extension of time for determination of the claim, provided that the Plan Administrator notifies the claimant, prior to the expiration of the initial ninety (90) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.
|
(a)
|
the specific reasons for the adverse determination,
|
(b)
|
references to the specific provisions of the Plan Statement (or other applicable Plan document) on which the adverse determination is based,
|
(c)
|
a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary, and
|
(d)
|
a description of the claim and review procedures, including the time limits applicable to such procedure, and a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.
|
(a)
|
The sixty (60) day period for deciding the claim on review may be extended for sixty (60) days if the Plan Administrator determines that special circumstances require an extension of time for determination of the claim, provided that the Plan Administrator notifies the claimant, prior to the expiration of the initial sixty (60) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.
|
(b)
|
In the event that the time period is extended due to a claimant’s failure to submit information necessary to decide a claim on review, the claimant shall have sixty (60) days within which to provide the necessary information and the period for making the claim determination on review shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information or, if earlier, the expiration of sixty (60) days.
|
(c)
|
The Plan Administrator’s review of a denied claim shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
|
(a)
|
the specific reasons for the denial,
|
(b)
|
references to the specific provisions of the Plan Statement (or other applicable Plan document) on which the adverse determination is based,
|
(c)
|
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits,
|
(d)
|
a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain information about such procedures, and
|
(e)
|
a statement of the claimant’s right to bring an action under ERISA section 502(a).
|
(a)
|
No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made in accordance with the established claim procedures. The Plan Administrator may require that any claim for benefits and any request for a review of a denied claim be filed on forms to be furnished by the Plan Administrator upon request.
|
(b)
|
All decisions on claims and on requests for a review of denied claims shall be made by the Plan Administrator unless delegated as provided for in the Plan, in which case references in this Section 9 to the Plan Administrator shall be treated as references to the Plan Administrator’s delegate.
|
(c)
|
Claimants may be represented by a lawyer or other representative at their own expense, but the Plan Administrator reserves the right to require the claimant to furnish written authorization and establish reasonable procedures for determining whether an individual has been authorized to act on behalf of a claimant. A claimant’s representative shall be entitled to copies of all notices given to the claimant.
|
(d)
|
The decision of the Plan Administrator on a claim and on a request for a review of a denied claim may be provided to the claimant in electronic form instead of in writing at the discretion of the Plan Administrator.
|
(e)
|
In connection with the review of a denied claim, the claimant or the claimant’s representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits.
|
(f)
|
The time period within which a benefit determination will be made shall begin to run at the time a claim or request for review is filed in accordance with the claims procedures, without regard to whether all the information necessary to make a benefit determination accompanies the filing.
|
(g)
|
The claims and review procedures shall be administered with appropriate safeguards so that benefit claim determinations are made in accordance with governing plan documents and, where appropriate, the plan provisions have been applied consistently with respect to similarly situated claimants.
|
(h)
|
The Plan Administrator may, in its discretion, rely on any applicable statute of limitation or deadline as a basis for denial of any claim.
|
(a)
|
the date the Participant knew (or reasonably should have known) of the general nature of the dispute giving rise to the action, or
|
(b)
|
the date the claim was denied.
|
(a)
|
no Participant or Beneficiary shall be permitted to litigate any such matter unless a timely claim has been filed under these administrative procedures and these administrative procedures have been exhausted, and
|
(b)
|
determinations by the Plan Administrator (including determinations as to whether the claim was timely filed) shall be afforded the maximum deference permitted by law.
|
10.1
|
Plan Administration.
|
(a)
|
Appoint one or more individuals or entities and delegate such of his or her powers and duties as he or she deems desirable to any individual or entity, in which case every reference herein made to Plan Administrator shall be deemed to mean or include the individual or entity as to matters within their jurisdiction. Such individual may be an officer or other employee of a Participating Employer or Affiliate, provided that any delegation to an employee of a Participating Employer or Affiliate will automatically terminate when he or she ceases to be an employee. Any delegation may be rescinded at any time; and
|
(b)
|
Select, employ and compensate from time to time such agents or consultants as the Plan Administrator may deem necessary or advisable in carrying out its duties and to rely on the advice and information provided by them.
|
|
SECTION 1 INTRODUCTION; DEFINITIONS
|
1
|
|
|
||
|
1.1
|
Name of Plan; History
|
1
|
|
|
|
|
1.2
|
Definitions
|
2
|
|
|
|
|
|
1.2.1
|
Account
|
2
|
|
|
|
|
1.2.2
|
Affiliate
|
2
|
|
|
|
|
1.2.3
|
Base Salary
|
2
|
|
|
|
|
1.2.4
|
Beneficiary
|
2
|
|
|
|
|
1.2.5
|
Board
|
2
|
|
|
|
|
1.2.6
|
Bonus
|
2
|
|
|
|
|
1.2.7
|
Certified Earnings
|
3
|
|
|
|
|
1.2.8
|
Change-in-Control.
|
3
|
|
|
|
|
1.2.9
|
Code
|
3
|
|
|
|
|
1.2.10
|
[Intentionally left blank.]
|
4
|
|
|
|
|
1.2.11
|
Company
|
4
|
|
|
|
|
1.2.12
|
Company’s Fiscal Year
|
4
|
|
|
|
|
1.2.13
|
Crediting Rate Alternative
|
4
|
|
|
|
|
1.2.14
|
Deferral Credit
|
4
|
|
|
|
|
1.2.15
|
Disabled
|
4
|
|
|
|
|
1.2.16
|
Discretionary Credit
|
4
|
|
|
|
|
1.2.17
|
Earnings Credit
|
4
|
|
|
|
|
1.2.18
|
EDCP
|
4
|
|
|
|
|
1.2.19
|
Effective Date
|
4
|
|
|
|
|
1.2.20
|
Eligible Compensation
|
5
|
|
|
|
|
1.2.21
|
Employee
|
5
|
|
|
|
|
1.2.22
|
Enhancement
|
5
|
|
|
|
|
1.2.23
|
ERISA
|
5
|
|
|
|
|
1.2.24
|
ESBP
|
5
|
|
|
|
|
1.2.25
|
ESBP Benefit
|
5
|
|
|
|
|
1.2.26
|
ESBP Benefit Transfer Credits
|
5
|
|
|
|
|
1.2.27
|
Newly Eligible Employee
|
5
|
|
|
|
|
1.2.28
|
Officer
|
5
|
|
|
|
|
1.2.29
|
Participant
|
5
|
|
|
|
|
1.2.30
|
Participating Employer
|
6
|
|
|
|
|
1.2.31
|
Performance Share Award
|
6
|
|
|
|
|
1.2.32
|
Plan
|
6
|
|
|
|
|
1.2.33
|
Plan Administrator
|
6
|
|
|
|
|
1.2.34
|
Plan Rules
|
6
|
|
|
|
|
1.2.35
|
Plan Statement
|
6
|
|
|
|
|
1.2.36
|
Plan Year
|
6
|
|
|
|
|
1.2.37
|
Restoration Match Credit
|
6
|
|
|
|
|
1.2.38
|
Signing Bonus
|
6
|
|
|
|
|
1.2.39
|
SPP Benefit
|
6
|
|
|
|
|
1.2.40
|
SPP Benefit Transfer Credit
|
6
|
|
|
|
|
1.2.41
|
Specified Employee
|
6
|
|
|
|
|
1.2.42
|
Target 401(k) Plan
|
7
|
|
|
|
|
1.2.43
|
Target Pension Plan
|
7
|
|
|
|
|
1.2.44
|
Termination of Employment.
|
7
|
|
|
|
|
1.2.45
|
Trust
|
7
|
|
|
|
|
1.2.46
|
Unforeseeable Emergency
|
7
|
|
|
|
|
1.2.47
|
Valuation Date
|
7
|
|
|
|
|
1.2.48
|
Year of Service
|
8
|
|
|
|
|
|
|
|
|
|
|
SECTION 2 PARTICIPATION AND DEFERRAL ELECTIONS
|
9
|
|
|
||
|
2.1
|
Eligibility.
|
9
|
|
|
|
|
2.2
|
Special Rules for Participating Employees
|
9
|
|
|
|
|
2.3
|
Termination of Participation
|
9
|
|
|
|
|
2.4
|
Rehires and Transfers.
|
9
|
|
|
|
|
2.5
|
Effect on Employment.
|
10
|
|
|
|
|
2.6
|
Condition of Participation
|
10
|
|
|
|
|
2.7
|
Deferral Elections
|
11
|
|
|
|
|
2.8
|
Base Salary Deferrals
|
11
|
|
|
|
|
2.9
|
Bonus Deferrals
|
11
|
|
|
|
|
2.10
|
Performance Share Award Deferrals
|
12
|
|
|
|
|
2.11
|
Special Code Section 162(m) Deferral Elections
|
12
|
|
|
|
|
2.12
|
Cancellation of Deferral Elections.
|
13
|
|
|
|
|
|
|
|
|
||
|
SECTION 3 CREDITS TO ACCOUNTS
|
14
|
|
|
||
|
3.1
|
Elective Deferral Credit
|
14
|
|
|
|
|
3.2
|
Restoration Match Credit.
|
14
|
|
|
|
|
3.3
|
SPP Benefit Transfer Credits.
|
15
|
|
|
|
|
3.4
|
ESBP Benefit Transfer Credits.
|
16
|
|
|
|
|
3.5
|
Discretionary Credits
|
17
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 4 ADJUSTMENTS OF ACCOUNTS
|
18
|
|
|
||
|
4.1
|
Establishment of Accounts
|
18
|
|
|
|
|
4.2
|
Adjustments of Accounts
|
18
|
|
|
|
|
4.3
|
Investment Adjustment
|
18
|
|
|
|
|
4.4
|
Enhancement.
|
18
|
|
|
|
|
4.5
|
Account Adjustments Upon a Change-in-Control or Plan Termination.
|
19
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 5 VESTING
|
20
|
|
|
||
|
5.1
|
Deferral Credits and Restoration Match Credits
|
20
|
|
|
|
|
5.2
|
Discretionary Credits
|
20
|
|
|
|
|
5.3
|
Enhancement.
|
20
|
|
|
|
|
5.4
|
SPP Benefit Transfer Credit
|
20
|
|
|
|
|
5.5
|
ESBP Benefit Transfer Credit
|
20
|
|
|
|
|
5.6
|
Failure to Cooperate; Misinformation or Failure to Disclose
|
20
|
|
|
|
|
|
|
|
|||
|
SECTION 6 DISTRIBUTION
|
21
|
|
|
||
|
6.1
|
Distribution Elections
|
21
|
|
|
|
|
6.2
|
General Rule
|
21
|
|
|
|
|
6.3
|
Six-Month Suspension for Specified Employees
|
24
|
|
|
|
|
6.4
|
Distribution on Account of Death; Distribution Following Death
|
24
|
|
|
|
|
6.5
|
Distribution on Account of Unforeseeable Emergency.
|
24
|
|
|
|
|
6.6
|
Designation of Beneficiaries.
|
25
|
|
|
|
6.7
|
Facility of Payment.
|
26
|
|
|
|
|
6.8
|
Tax Withholding
|
27
|
|
|
|
|
6.9
|
Payments Upon Rehire
|
27
|
|
|
|
|
6.10
|
Application for Distribution
|
27
|
|
|
|
|
6.11
|
Acceleration of Distributions
|
27
|
|
|
|
|
6.12
|
Delay of Distributions
|
27
|
|
|
|
|
|
|
|
|
||
|
SECTION 7 SOURCE OF PAYMENTS; NATURE OF INTEREST
|
28
|
|
|
||
|
7.1
|
Source of Payments.
|
28
|
|
|
|
|
7.2
|
Unfunded Obligation
|
28
|
|
|
|
|
7.3
|
Establishment of Trust
|
28
|
|
|
|
|
7.4
|
Spendthrift Provision
|
28
|
|
|
|
|
7.5
|
Compensation Recovery (Recoupment)
|
29
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 8 ADOPTION, AMENDMENT AND TERMINATION
|
30
|
|
|
||
|
8.1
|
Adoption
|
30
|
|
|
|
|
8.2
|
Amendment.
|
30
|
|
|
|
|
8.3
|
Termination and Liquidation.
|
30
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 9 CLAIM PROCEDURES
|
32
|
|
|
||
|
9.1
|
Claims Procedure
|
32
|
|
|
|
|
9.2
|
Rules and Regulations.
|
33
|
|
|
|
|
9.3
|
Limitations and Exhaustion.
|
34
|
|
|
|
|
|
|
|
|
||
|
SECTION 10 PLAN ADMINISTRATION
|
36
|
|
|
||
|
10.1
|
Plan Administration
|
36
|
|
|
|
|
10.2
|
Conflict of Interest
|
36
|
|
|
|
|
10.3
|
Service of Process
|
36
|
|
|
|
|
10.4
|
Choice of Law
|
37
|
|
|
|
|
10.5
|
Responsibility for Delegate
|
37
|
|
|
|
|
10.6
|
Expenses
|
37
|
|
|
|
|
10.7
|
Errors in Computations
|
37
|
|
|
|
|
10.8
|
Indemnification
|
37
|
|
|
|
|
10.9
|
Notice
|
37
|
|
|
|
|
|
|
|
|
||
|
SECTION 11 CONSTRUCTION
|
38
|
|
|
||
|
11.1
|
ERISA Status
|
38
|
|
|
|
|
11.2
|
IRC Status
|
38
|
|
|
|
|
11.3
|
Rules of Document Construction
|
38
|
|
|
|
|
11.4
|
References to Laws
|
38
|
|
|
|
|
11.5
|
Appendices
|
38
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX A
|
39
|
|
|
(a)
|
the
limits imposed by Code section 401(a)(17) will not apply;
|
(b)
|
deferrals under Section 2.8 of this Plan are included as Base Salary; and
|
(c)
|
Bonus and Signing Bonus amounts are not included as Base Salary.
|
(a)
|
the limits imposed by Code section 401(a)(17) will not apply;
|
(b)
|
deferrals under Section 2.9 of this Plan are included as Bonus; and
|
(c)
|
Signing Bonus amounts are not included as Bonus.
|
(a)
|
Individuals who are Continuing Directors cease for any reason to constitute 50% or more of the directors of the Company; or
|
(b)
|
30% or more of the outstanding voting power of the Voting Stock of the Company is acquired or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by any Person, other than an entity resulting from a Business Combination in which clauses (x) and (y) of Section 1.2.8(c) apply; or
|
(c)
|
the consummation of a merger or consolidation of the Company with or into another entity, a statutory share exchange, a sale or other disposition (in one transaction or a series of transactions) of all or substantially all of the Company’s assets or a similar business combination (each, a “Business Combination”), in each case unless, immediately following such Business Combination, (x) all or substantially all of the beneficial owners (within the meaning of Rule 13d-3 under the Exchange Act) of the Company’s Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the voting power of the then outstanding shares of voting stock (or comparable voting equity interests) of the surviving or acquiring entity resulting from such Business Combination (including such beneficial ownership of an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), in substantially the same proportions (as compared to the other beneficial owners of the Company’s Voting Stock immediately prior to such Business Combination) as their beneficial ownership of the Company’s Voting Stock immediately prior to such Business Combination, and (y) no Person beneficially owns, directly or indirectly, 30% or more of the voting power of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity (other than a direct or indirect parent entity of the surviving or acquiring entity, that, after giving effect to the Business Combination, beneficially owns, directly or indirectly, 100% of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity); or
|
(d)
|
approval by the shareholders of a definitive agreement or plan to liquidate or dissolve the Company.
|
(a)
|
For purposes of determining entitlement to or the amount of benefits under the Plan, “Termination of Employment” means a severance of a Participant’s employment relationship with each Participating Employer and all Affiliates, for any reason.
|
(b)
|
For purposes of determining when a distribution will be made under the Plan, a “Termination of Employment” will be deemed to occur if, based on the relevant facts and circumstances to the Participant, the Participating Employer, all Affiliates and Participant reasonably anticipate that the level of bona fide future services to be performed by the Participant for the Participating Employer and all Affiliates will permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36-month period.
|
(c)
|
A bona fide leave of absence that is six months or less, or during which an individual retains a reemployment right, will not cause a Termination of Employment. In the case of a leave of absence without a right of reemployment that exceeds the time periods described in this paragraph, a Termination of Employment will be deemed to occur once the leave of absence exceeds six months.
|
(d)
|
Notwithstanding the foregoing, a Termination of Employment shall not occur unless such termination also qualifies as a “separation from service,” as defined under Code section 409A and related guidance thereunder.
|
(a)
|
is a “qualified employee” as that term is defined in the Target 401(k) Plan; and
|
(b)
|
is an Officer.
|
(a)
|
The Employee will become a Participant in this Plan immediately upon satisfying the requirements to participate hereunder.
|
(b)
|
The Employee’s deferral elections made under the EDCP will transfer to the Plan and continue as an election made under Section 2.
|
(c)
|
The Employee’s account maintained under the EDCP will be transferred to the Employee’s Account under this Plan.
|
(d)
|
The Employee’s distribution elections made under the EDCP (including any default distributions) will transfer to this Plan and continue as the distribution elections made under this Plan.
|
(e)
|
The Employee’s beneficiary designation made under the EDCP will be treated as the Employee’s Beneficiary designation under this Plan until changed in accordance with Section 6.7.
|
(a)
|
the first part of the election will apply with respect to the first paycheck issued during the applicable Plan Year through the last paycheck issued prior to the end of the Company’s Fiscal Year ending in the Plan Year, and
|
(b)
|
the second part will apply to the paychecks issued after the beginning of the Company’s Fiscal Year beginning in such Plan Year and issued prior to the end of such Plan Year.
|
(a)
|
The Bonus amounts that satisfy the requirements of performance-based compensation under Code section 162(m), and
|
(b)
|
All other Bonus amounts as determined by the Plan Administrator.
|
(a)
|
An election to defer Base Salary amounts for the Plan Year during which the hardship withdrawal was made will be cancelled. Further, no Base Salary deferral election will be effective for the next Plan Year if the hardship withdrawal occurs after June 30, and on or before December 31 of the calendar year.
|
(b)
|
Any election to defer Bonus or Performance Share Award amounts in effect at the time of the hardship withdrawal will be cancelled. Further, no deferral election for a Bonus related to service in the next Plan Year will be effective if the hardship withdrawal occurs after June 30, and on or before December 31 of the calendar year.
|
(a)
|
The maximum matching contribution percentage the Participant is eligible to receive on deferrals under the applicable Target 401(k) Plan multiplied by the Participant’s Base Salary and Bonus that is deferred under this Plan during the Plan Year; and
|
(b)
|
The maximum matching contribution percentage the Participant is eligible to receive on deferrals under the applicable Target 401(k) Plan multiplied by the Participant’s Plan Year Base Salary and Bonus that is not deferred under this Plan during the Plan Year and that exceeds the compensation limit in effect under Code section 401(a)(17) for such Plan Year;
|
(a)
|
the date of the Participant’s death; or
|
(b)
|
for any Participant not described in Paragraph (a) above, the last business day of the Plan Year.
|
(a)
|
A Participant who satisfies the requirements of Section 3.3.1 receives an initial SPP Benefit Transfer Credit on or about the April 30 (or immediately preceding business day) immediately following the calendar year in which the Participant becomes eligible under Section 3.3.1, in an amount equal to the actuarial lump sum present value on March 31 (or immediately preceding business day) for the Participant’s SPP Benefit accrued through the preceding December 31. In the case of Participant who is an Executive officer, such transfer will be made and determined on or about the last business day prior to the end of the Company’s Fiscal Year.
|
(b)
|
Upon a Plan termination on account of a Change-in-Control under Section 8.3.2, the Plan Administrator shall credit the initial SPP Benefit Transfer Credit to a Participant’s Account as of the Plan termination effective date in an amount equal to the actuarial lump sum present value on the Plan termination effective date.
|
(a)
|
For each Plan Year, the annual SPP Benefit Transfer Credit will be the difference between (i) the SPP Benefit determined as the last day of the Plan Year expressed as the actuarial lump sum present value on the determination date and (ii) the aggregate amount of the previous SPP Benefit Transfer Credits to the Participant’s Account increased by assumed earnings at an annual rate equal to the sum of the average of the applicable Stable Value Crediting Rate Alternative for the Plan Year plus two percent (2%) determined from the crediting date through the earlier of June 5, 2012 or the determination date and after June 5, 2012 at an annual rate equal to the sum of the average of the applicable Intermediate-Term Bond Crediting Rate Alternative for the Plan Year plus two percent (2%) from the later of June 5 or the crediting date through the determination date; provided that with respect to periods that a Participant does not receive the Enhancement on their Account, the annual rate will be equal to the average of the applicable Stable Value Crediting Rate Alternative, through June 5, 2012, or the Intermediate-Term Bond Crediting Rate Alternative, after June 5, 2012, as applicable.
|
(b)
|
If the amount of the annual or final SPP Benefit Transfer Credit is positive, a credit will be made to the Participant’s Account. If the amount of the SPP Benefit Transfer Credit is negative and (i) the Participant is an executive Officer on the determination date, or (ii) the Participant is an Employee and member of the Board, but was formerly an executive Officer, then the Plan Administrator, in its sole discretion, may cause such Participant’s Account to be debited by such negative amount. The debit will be made pro rata among all distribution options of the Plan other than fixed payment dates.
|
(c)
|
The annual SPP Benefit Transfer Credit (including a negative credit) will be made to the Participant’s Account as of the April 30 (or immediately preceding business day) following the determination date. In the case of a Participant who is an executive Officer, the Plan Administrator, in its sole discretion, may cause such transfer will be made and determined on or about the last business day prior to the end of the Company’s Fiscal Year.
|
(d)
|
For purposes of this section, “determination date” means on or about March 31; provided that in the case of a Participant who is an executive Officer, the Plan Administrator, in its sole discretion, may cause the “determination date” to be on or about the last business day prior to the end of the Company’s Fiscal Year.
|
(e)
|
Upon a Plan termination on account of a Change-in-Control under Section 8.3.2, the Plan Administrator shall credit to a Participant’s Account as of the Plan termination effective date an SPP Benefit Transfer Credit as determined in this Section 3.3.3 as of the Plan termination effective date.
|
(f)
|
Notwithstanding the foregoing, a Participant’s final SPP Benefit Transfer Credit will be determined within 60 days following his or her Termination of Employment as defined under Section 1.2.44(a).
|
(g)
|
Notwithstanding the foregoing, determination of the amount of a Participant’s SPP Benefit Transfer Credit under Paragraph (b) is subject to the calculation of the Participant’s SPP III benefit, if any, under Section A-4.3 of Appendix A.
|
(a)
|
For each Plan Year, the annual ESBP Benefit Transfer Credit will be the difference between (i) the ESBP Benefit determined as of the last day of the Plan Year as expressed as the actuarial lump sum present value on the determination date, and (ii) the aggregate amount of the previous ESBP Benefit Transfer Credits to the Participant’s Account increased by earnings at an annual rate equal to the sum of
|
(b)
|
The credit to the Participant’s Account will be made as of the April 30 (or immediately preceding business day) following the determination date.
|
(c)
|
For purposes of this section, “determination date” means on or about March 30.
|
(d)
|
Upon a Change-in-Control, the Plan Administrator shall credit to a Participant’s Account as of the date of the Change-in-Control an ESBP Benefit Transfer Credit as determined in this Section 3.4. as of the date of the Change-in-Control.
|
(e)
|
Notwithstanding the foregoing, a final annual ESBP Benefit Transfer Credit will be made to the Participant’s Account 60 days following a Participant’s Termination of Employment as defined under Section 1.2.44(a).
|
(a)
|
Installments.
A series of annual installments made over either five (5) years or ten (10) years commencing at a time provided under Section 6.2.2(a) or (b). For purposes of Code section 409A, installment payments will be treated as a series of separate payments at all times.
|
(b)
|
Lump Sum.
A single lump sum payment.
|
(a)
|
Termination of Employment.
Within 60 days following the Participant’s Termination of Employment, other than on account of death.
|
(b)
|
One-Year Anniversary of Termination of Employment.
Within 60 days following the one-year anniversary of the Participant’s Termination of Employment, other than on account of death.
|
(c)
|
Fixed Payment Date.
Within 60 days of January 1 of the calendar year elected by the Participant at the time of deferral. If a Participant has a Termination of Employment as defined in Section 1.2.44 prior to the fixed payment date, such amount shall be paid on the earlier of: (i) within 60 days following January 1 in the tenth year following the year of the Termination of Employment, or (ii) January 1 of the calendar year elected by the Participant at the time of deferral. The Plan Administrator will establish Plan Rules, procedures and limitations on establishing the number and times of the fixed payment dates available for Participants to elect.
|
(d)
|
Payouts in 2008 and 2009.
During 2007 and 2008, consistent with transition relief available under Code section 409A, and subject to Plan Rules:
|
(i)
|
Participants had an opportunity to elect during 2007 to receive a distribution of all or a portion of their Account valued as of December 31, 2007 to be distributed in January 2008.
|
(ii)
|
Participants had an opportunity to elect during 2007 to receive a distribution of all or a portion of their Bonus Deferral Credits for 2007 and Performance Share Awards in 2004, if any, to be credited under this Plan in 2008, to be distributed on the date such Bonus Deferral Credits or Performance Share Awards would otherwise have been credited to this Plan, or, with respect to such Performance Share Awards, such other date as specified in the election form.
|
(iii)
|
Participants had an opportunity to elect during 2008 to receive a distribution of all or a portion of their Account valued as of December 31, 2008 to be distributed in January 2009.
|
(iv)
|
Participants had an opportunity to elect during 2008 to receive a distribution of all or a portion of their Bonus Deferral Credits for 2008, if any, to be credited under this Plan in 2009, to be distributed on the date such Bonus Deferral Credits would otherwise have been credited to this Plan.
|
(a)
|
In the case of SPP Benefit Transfer Credits, other than those pursuant to Appendix A, Section A-4.3 - a single lump sum within 60 days following the one-year anniversary of the Participant’s Termination of Employment.
|
(b)
|
In the case of SPP Benefit Transfer Credits pursuant to Appendix A, Section A-4.3:
|
(i)
|
Twenty-four (24) monthly installment payments commencing within 60 days following the Participant’s Termination of Employment;
|
(ii)
|
Each monthly installment payment will be determined by dividing: (A) the amount of the vested portion of the Account attributable to Appendix A, Section A-4.3 and an amount of Earnings Credits equal to the investment adjustment that would have been credited on such SPP Benefit Transfer Credits at the Stable Value Crediting Rate Alternative through the most recent Valuation Date preceding the earlier of June 5, 2012 or date the installment is due, and after June 5, 2012, at the Intermediate-Term Bond Crediting Rate Alternative through the most recent Valuation Date preceding the date the installment is due, by (B) twenty-four (24), less the number of monthly installment payments that have previously been made from the Plan.
|
(c)
|
In all other cases - a single lump sum payment within 60 days following the Participant’s Termination of Employment.
|
(a)
|
Deferral and Restoration Match Credits.
|
(i)
|
Lump Sum Distribution.
If Deferral or Restoration Match Credits are due after the complete distribution of the Participant’s vested Account balance, or subaccount balance to which such Deferral or Restoration Match Credit relate, then such subsequent credits will be made to the Account and paid to the Participant in a single lump sum cash payment within 60 days of being credited to the Account.
|
(ii)
|
Installment Distribution.
If Deferral or Restoration Match Credits are due after a related installment distribution occurs, then such subsequent credits will be made to the Account and included in the Account balance to determine the amount of the remaining scheduled payments as applicable.
|
(b)
|
SPP or ESBP Benefit Transfer Credit.
The SPP Benefit Transfer Credit other than those pursuant to Appendix A, Section A-4.3 or ESBP Benefit Transfer Credit, as applicable, arising after a Participant’s Termination of Employment pursuant to Sections 3.3.3(f) and 3.4.1(e) shall be distributed as follows:
|
(i)
|
For amounts accruing prior to January 1, 2014, in a single lump sum within 60 days following the Termination of Employment; and
|
(ii)
|
For amounts accruing on or after January 1, 2014,
|
(A)
|
If the SPP Benefit Transfer Credit is due after the complete distribution of the Participant’s vested Account balance, or subaccount balance to which such Credit relates, then such Credit will be made to the Account and paid to the Participant in a single lump sum payment within 60 days of being credited to the Account;
|
(B)
|
If the SPP Benefit Transfer Credit is due after a related installment distribution occurs, then such subsequent Credit will be made to the Account and included in the Account balance to determine the amount of the remaining scheduled payments as applicable; and
|
(C)
|
If the SPP Benefit Transfer Credit is due prior to the commencement of payment to which such credit relates, distribution shall be made at the time and in the manner elected by the Participant or pursuant to the Plan’s rule, all as provided in Section 6.2.2.
|
(a)
|
Each Participant may designate one or more primary Beneficiaries or secondary Beneficiaries to receive all or a specified part of such Participant’s vested Account in the event of such Participant’s death. If fewer than all designated primary or secondary Beneficiaries predecease the Participant, then the amount of such predeceased Beneficiary’s portion shall be allocated to the remaining primary or secondary Beneficiaries, as the case may be.
|
(b)
|
The Participant may change or revoke any such designation from time to time without notice to or consent from any spouse, any person named as Beneficiary or any other person.
|
(c)
|
No such designation, change or revocation shall be effective unless completed and filed with the Plan Administrator in accordance with Plan Rules during the Participant’s lifetime.
|
(a)
|
fails to designate a Beneficiary,
|
(b)
|
designates a Beneficiary and thereafter revokes such designation without naming another Beneficiary, or
|
(c)
|
designates one or more Beneficiaries and all such Beneficiaries so designated fail to survive the Participant, such Participant’s vested Account, shall be payable to the first class of the following classes of automatic Beneficiaries:
|
(a)
|
If there is not sufficient evidence that a person designated as a Beneficiary was living at the time of the death of the Participant, it shall be deemed that the Beneficiary was not living at the time of the death of the Participant.
|
(b)
|
The automatic Beneficiaries specified in Section 6.6.2 and the Beneficiaries designated by the Participant shall become fixed at the time of the Participant’s death (subject to Section 6.6.3) so that, if a Beneficiary survives the Participant but dies before the receipt of all payments due such Beneficiary hereunder, such remaining payments shall be payable to the representative of such Beneficiary’s estate.
|
(c)
|
If the Participant designates as a Beneficiary the person who is the Participant’s spouse on the date of the designation, either by name or by relationship, or both, the dissolution, annulment or other legal termination of the marriage between the Participant and such person shall automatically revoke such designation. The foregoing shall not prevent the Participant from designating a former spouse as a beneficiary on a form that is both executed by the Participant and received by the Plan Administrator (i) after the date of the legal termination of the marriage between the Participant and such former spouse and (ii) during the Participant’s lifetime.
|
(d)
|
A finalized marriage (other than a common law marriage) of a Participant subsequent to the date of filing of a Beneficiary designation shall revoke such designation unless the Participant’s new spouse had previously been designated as the Beneficiary.
|
(e)
|
Any designation of a nonspouse Beneficiary by name that is accompanied by a description of relationship to the Participant shall be given effect without regard to whether the relationship to the Participant exists either then or at the Participant’s death.
|
(f)
|
Any designation of a Beneficiary only by statement of relationship to the Participant shall be effective only to designate the person or persons standing in such relationship to the Participant at the Participant’s death.
|
(a)
|
to the duly appointed guardian, conservator or other legal representative of such individual, or
|
(b)
|
to a person or institution entrusted with the care or maintenance of the incompetent or disable Participant or Beneficiary, provided such person or institution has satisfied the Plan Administrator that the payment will be used for the best interest and assist in the care of such individual, and provided further, that no prior claim for said payment has been made by a duly appointed guardian, conservator or other legal representative of such individual.
|
(a)
|
To the extent necessary or reasonable to comply with any changes in law, the Board may at any time terminate and liquidate this Plan, provided such termination and liquidation satisfies the requirements of Code section 409A.
|
(b)
|
To the extent that a Participant’s benefit under the Plan will be immediately included in the income of the Participant, as determined by a court of competent jurisdiction or the Internal Revenue Service, to the extent permitted under Code section 409A, the Board may terminate and liquidate this Plan,
in whole or in part, as it relates to the impacted Participant.
|
(a)
|
The Plan will be terminated effective as of the first date on which there has occurred both (i) a Change-in-Control under Section 1.2.8, and (ii) a funding of the Trust on account of such Change-in-Control (referred to herein as the “Plan termination effective date”) unless, prior to such Plan termination effective date, the Board affirmatively determines that the Plan will not be terminated as of such effective date. The Board will be deemed to have taken action to irrevocably
|
(b)
|
The determination by the Board under paragraph (a) constitutes a determination that such termination will satisfy the requirements of Code section 409A, including an agreement by the Company that it will take such additional action or refrain from taking such action as may be necessary to satisfy the requirements necessary to terminate and liquidate the Plan under paragraph (c) below.
|
(c)
|
In the event the Board does not affirmatively determine not to terminate the Plan as provided in paragraph (a), such termination shall be subject to either (i) or (ii), as follows:
|
(i)
|
If the Change-in-Control qualifies as a “change in control event” for purposes of Code section 409A, payment of all amounts under the Plan will be accelerated and made in a lump sum as soon a administratively practicable but not more than 90 days following the Plan termination effective date, provided the requirements of Treasury Regulation Section 1.409A-3(j)(4)(ix)(B) have been satisfied.
|
(ii)
|
If the Change-in-Control does not qualify as a “change in control event” for purposes of Code section 409A, payment of all amounts under the Plan will be accelerated and made in a lump sum as soon as administratively practicable but not more than 60 days following the 12 month anniversary of the Plan termination effective date, provided the requirements of Treasury Regulation Section 1.409A-3(j)(4)(ix)(C) have been satisfied.
|
(a)
|
If the claim is denied in whole or in part, the Plan Administrator shall notify the claimant of the adverse benefit determination within ninety (90) days after receipt of the claim.
|
(b)
|
The ninety (90) day period for making the claim determination may be extended for ninety (90) days if the Plan Administrator determines that special circumstances require an extension of time for determination of the claim, provided that the Plan Administrator notifies the claimant, prior to the expiration of the initial ninety (90) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.
|
(a)
|
The specific reasons for the adverse determinations,
|
(b)
|
references to the specific provisions of this Plan Statement (or other applicable Plan document) on which the adverse determination is based,
|
(c)
|
a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary, and
|
(d)
|
a description of the claim and review procedures, including the time limits applicable to such procedure, and a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.
|
(a)
|
The sixty (60) day period for deciding the claim on review may be extended for sixty (60) days if the Plan Administrator determines that special circumstances
|
(b)
|
In the event that the time period is extended due to a claimant’s failure to submit information necessary to decide a claim on review, the claimant shall have sixty (60) days within which to provide the necessary information and the period for making the claim determination on review shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information or, if earlier, the expiration of sixty (60) days.
|
(c)
|
The Plan Administrator’s review of a denied claim shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
|
(a)
|
the specific reasons for the denial,
|
(b)
|
references to the specific provisions of this Plan Statement (or other applicable Plan document) on which the adverse determination is based,
|
(c)
|
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits,
|
(d)
|
a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain information about such procedures, and
|
(e)
|
a statement of the claimant’s right to bring an action under ERISA section 502(a).
|
(a)
|
No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made in accordance with the established claim procedures. The Plan Administrator may require that any claim for benefits and any request for a review of a denied claim be filed on forms to be furnished by the Plan Administrator upon request.
|
(b)
|
All decisions on claims and on requests for a review of denied claims shall be made by the Plan Administrator unless delegated as provided for in the Plan, in which
|
(c)
|
Claimants may be represented by a lawyer or other representative at their own expense, but the Plan Administrator reserves the right to require the claimant to furnish written authorization and establish reasonable procedures for determining whether an individual has been authorized to act on behalf of a claimant. A claimant’s representative shall be entitled to copies of all notices given to the claimant.
|
(d)
|
The decision of the Plan Administrator on a claim and on a request for a review of a denied claim may be provided to the claimant in electronic form instead of in writing at the discretion of the Plan Administrator.
|
(e)
|
In connection with the review of a denied claim, the claimant or the claimant’s representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information necessary to make a benefit determination accompanies the filing.
|
(f)
|
The time period within which a benefit determination will be made shall begin to run at the time a claim or request for review is filed in accordance with the claims procedures, without regard to whether all the information necessary to make a benefit determination accompanies the filing.
|
(g)
|
The claims and review procedures shall be administered with appropriate safeguards to that benefit claim determinations are made in accordance with governing plan documents and, where appropriate, the plan provisions have been applied consistently with respect to similarly situated claimants.
|
(h)
|
The Plan Administrator may, in its discretion, rely on any applicable statute of limitation or deadline as a basis for denial of any claim.
|
(a)
|
the date the Participant knew (or reasonably should have known) of the general nature of the dispute giving rise to the action, or
|
(b)
|
the date the claim was denied.
|
(a)
|
no Participant or Beneficiary shall be permitted to litigate any such matter unless a timely claim has been filed under these administrative procedures and these administrative procedures have been exhausted, and
|
(b)
|
determinations by the Plan Administrator (including determinations as to whether the claim was timely filed shall be afforded the maximum deference permitted by law.
|
(a)
|
Appoint one or more individuals or entities and delegate such of his or her powers and duties as he or she deems desirable to any individual or entity, in which case every reference herein made to Plan Administrator shall be deemed to mean or include the individual or entity as to matters within their jurisdiction. Such individual may be an officer or other employee of a Participating Employer or Affiliate, provided that any delegation to an employee of a Participating Employer or Affiliate will automatically terminate when he or she ceases to be an employee. Any delegation may be rescinded at any time; and
|
(b)
|
Select, employ and compensate from time to time such agents or consultants as the Plan Administrator may deem necessary or advisable in carrying out its duties and to rely on the advice and information provided by them.
|
(a)
|
The monthly pension benefit the Participant would be entitled to under the Target Pension Plan, based on the “traditional formula,” if such formula were applied
|
(i)
|
without regard to the maximum benefit limitation required by Code section 415;
|
(ii)
|
without regard to the maximum compensation limitation under Code section 401(a)(17);
|
(iii)
|
as if the definition of “certified earnings” under the Target Pension Plan for a plan year included compensation that would have been paid in the plan year in the absence of the Participant’s election to defer payment of
|
(iv)
|
without regard to the alternative benefit formula of Sections 4.6(a)(3) and 4.6(b)(2) of the Target Pension Plan.
|
(b)
|
The monthly pension benefit the Participant is entitled to receive under the Target Pension Plan on account of the “traditional formula.”
|
(a)
|
The amount that would have been credited each quarter (including both “pay credits” and “interest credits”) to the Participant’s “personal pension account” under the Target Pension Plan, if such account were applied:
|
(i)
|
without regard to the maximum benefit limitations required by Code section 415;
|
(ii)
|
without regard to the maximum compensation limitation under Code section 401(a)(17);
|
(iii)
|
as if the definition of “certified earnings” under the Target Pension Plan for a calendar quarter included compensation that would have been paid during such calendar quarter in the absence of the Participant’s election to defer payment of the compensation to a later date pursuant to the provisions of a deferred compensation plan;
|
(iv)
|
as if a distribution had been made from such account equal to any SPP Benefit Transfer Credits made under Section 3.3.
|
(b)
|
The amount of the credits actually made to the Participant’s “personal pension account” under the Target Pension Plan.
|
(a)
|
The monthly pension benefits determined under Section A-4.1(a) determined by treating the Participant as five (5) years older than his or her actual age solely for purposes of determining the early commencement factor (but in no case shall the Participant’s age be deemed to be greater than age 65); provided, however, the early commencement factor shall be equal to the factor in effect under this Paragraph (a) on February 1, 2013, or, if greater, the Participant’s actual early commencement factor under the Target Pension Plan.
|
(b)
|
The monthly pension benefits determined under Section A-4.1(a).
|
I.
|
CONCEPTS
|
A.
|
GENERAL
|
B.
|
ELIGIBILITY
|
C.
|
REASSIGNMENT
|
D.
|
SPIN-OFF
|
E.
|
DISQUALIFICATION AND REDUCTION
|
F.
|
INTERPRETATION
|
II.
|
APPLICATION
|
A.
|
ELIGIBILITY PERIOD - DEFINITION
|
B.
|
ELIGIBILITY PERIOD - USE
|
1.
|
Reassignment to a position within the Corporation for which he or she is no longer designated as an Officer, or
|
2.
|
A downgrade in Pay Level as set forth in A. above.
|
C.
|
PAYMENT PERIOD - DEFINITION
|
D.
|
PAYMENTS
|
1.
|
Amount
|
a.
|
Base Compensation
|
b.
|
Performance Bonus
|
c.
|
Adjustment
|
d.
|
Installment Payments
|
2.
|
Commencement
|
3.
|
Set-Off and Withholding
|
a.
|
Reduction
|
b.
|
Adjustments
|
4.
|
Recovery of Payments
.
|
E.
|
DEATH OF EXECUTIVE
|
1.
|
Unless the Executive has otherwise designated in unrevoked writing, acknowledged in writing by the CEO, the surviving spouse of the Executive, if any, will be entitled to all remaining Payments.
|
2.
|
If the Executive has otherwise effectively designated in unrevoked writing, acknowledged in writing by the CEO, then Payment will be made to or for the account of the person or persons so designated as identified by the Corporation.
|
3.
|
In the absence of effective prior written designation by the Executive and of a known surviving spouse, the Corporation shall pay any remaining Payments to the Executive’s estate.
|
4.
|
In the interest of providing uninterrupted income to authorized beneficiaries of the Executive, any Officer-ICP Payment made with reasonable care and in good faith by the Corporation shall conclusively constitute Payment by the Corporation in accordance with and satisfaction of the entitlement of the Executive and Executive's beneficiaries under Officer-ICP. No interest or other charge shall be payable by the Corporation or its representatives on any Payment delayed by the Corporation to permit reasonable verification of authorized recipient(s).
|
F.
|
DISQUALIFICATION
|
1.
|
No Executive will be disqualified from receipt of future Officer-ICP Payments by reason of any act or omission of anyone other than the Executive or one or more persons acting pursuant to the conscious and effective control of the Executive. Disqualification will be interpreted as follows:
|
a.
|
While Employed in the Corporation
|
b.
|
After Notice of Termination
|
1)
|
Unauthorized removal, use or disclosure of strategic or operating plans, trade secrets, customer lists, internal systems or other significant proprietary information of or concerning the Corporation or its personnel, the use or disclosure of which is intended or likely to cause loss or reduction of business advantage or substantial injury to the Corporation or its management, business opportunities or interests.
|
2)
|
Expressing or endorsing publication of untrue statements which are intended or likely to receive broad public attention and to bring the Corporation or its interests, methods or representatives into disrepute.
|
3)
|
Providing materially false or misleading information concerning post-termination employment, or failure or refusal promptly and accurately to provide required information, verification or authorization required by the CEO as provided in this Statement and affecting any Officer-ICP payment due from the Corporation.
|
4)
|
Solicitation of or an offer to an employee within the Corporation to accept employment elsewhere, where the selection of or offer to the recruited employee was based in the whole or in part upon Executive's knowledge or experience concerning the employee which was acquired by the Executive while employed within the Corporation or through one or more personal acquaintances employed within the Corporation.
|
5)
|
Exercising the discretion, authority or powers of an office or position held by an Executive after Notice of Termination, and whether or not before an Employment Severance Date, unless specifically authorized or directed in writing in advance by an authorized executive of the Corporation.
|
2.
|
Recoupment
|
a.
|
If the Committee determines Officer-ICP Payments are subject to recovery by the Corporation under this Section II.F.2. and the Recoupment Policy, the Committee shall be entitled, in its discretion, to demand repayment or cancellation of all or a portion of the maximum amount that can be recovered or cancelled.
|
b.
|
Pending a determination by the Committee on the application of this Section II.F.2. and the Recoupment Policy to a recipient of Officer-ICP Payments, the Committee shall have the authority to suspend any payments under the Officer-ICP.
|
c.
|
Upon a determination by the Committee that Officer-ICP payments are subject to recovery by the Corporation, the Corporation shall have the right, to the extent permitted by law (and without causing payments to become taxable under Section 409A of the Code), to set-off amounts due the Corporation under this Section II.F.2. and/or the Recoupment Policy against any amount owed by the Corporation to the recipient of Officer-ICP Payments under the Officer-ICP or any non-qualified deferred compensation plan.
|
d.
|
An amendment of the Recoupment Policy shall not be treated as an amendment of the Officer-ICP under Section II.M.
|
3.
|
Preservation of Rights
|
G.
|
COMPETITIVE EMPLOYMENT
|
1.
|
Purpose of Set-Off
|
2.
|
Competitors Identified
|
3.
|
Criteria
|
a.
|
Selective Potential Detriment
|
b.
|
Preservation of Employment Opportunities
|
c.
|
Relevant Considerations
|
4.
|
Officer-ICP Payment Reduction
|
a.
|
Reporting
|
b.
|
Verification and Reconciliation
|
H.
|
REASSIGNMENT AND SPIN-OFF
|
1.
|
Reassignment and Other Adjustments
|
2.
|
Spin-Off
|
I.
|
REPORTING
|
J.
|
INTERPRETATION
|
1.
|
Any decision of the CEO will be: (1) Final and conclusive of the rights and obligations of all affected parties and (2) Applied uniformly as to all Executives then similarly situated (subject to subsequent Officer-ICP amendment); and (3) Not subject to separate determination or review by any public or private agency or authority except as expressly provided in this Statement.
|
2.
|
References to compensation and other monetary rates or measurements in this Statement and its applications are in current dollars, unadjusted by reason of inflation, deflation or otherwise.
|
3.
|
Any portion of a full calendar month or year will be prorated on a full calendar basis, without differential related to such considerations as working days or holidays. Any portion of a day will be treated as a full day, and measurement days will begin and end at midnight, current time. The fiscal year of the Corporation will be treated for all purposes as it is for financial reporting purposes.
|
4.
|
In the event of application or interpretation of Officer-ICP to an individual Executive who is a Director of the Corporation, or otherwise in its sole discretion, the Board of Directors of the Corporation or its authorized committee shall have and may exercise the sole, exclusive and final authority and discretion of the CEO for any purpose under Officer-ICP.
|
K.
|
RELEASE
|
L.
|
GENERAL
|
M.
|
AMENDMENT
|
1.
|
Effective Date of Change
|
2.
|
Notice of Amendment
|
3.
|
Acquiescence
|
4.
|
Adjustment
|
N.
|
APPLICABLE LAW
|
O.
|
DEFINITIONS
|
1.
|
“Cash Compensation”
|
2.
|
“
CEO”
|
3.
|
“Corporation”
|
4.
|
“Directly Competitive Employment” (or “DCE”)
|
5.
|
“Employment Severance Date”
|
7.
|
“Notice of Termination” (or “Notice”)
|
8.
|
“Payments” (or “ICP Payments”)
|
9.
|
“Reassignment”
|
10.
|
“Spin-Off”
|
11.
|
“Change in Control”
|
(a)
|
Individuals who are Continuing Directors cease for any reason to constitute 50% or more of the directors of Target, or
|
(b)
|
30% or more of the outstanding voting power of the Voting Stock of Target is acquired or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by any Person other than an entity resulting from a Business Combination in which clauses (x) and (y) of subparagraph (c) apply, or
|
(c)
|
the consummation of a merger or consolidation of Target with or into another entity, a statutory share exchange, a sale or other disposition (in one transaction or a series of transactions) of all or substantially all of Target’s assets or a similar business combination (each, a “Business Combination”), in each case unless, immediately following such Business Combination, (x) all or substantially all of the beneficial owners (within the meaning of Rule 13d-3 under the Exchange Act) of Target’s Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the voting power of the then outstanding shares of voting stock (or comparable voting equity interests) of the surviving or acquiring entity resulting from such Business Combination (including such beneficial ownership of an entity that, as a result of such transaction, owns Target or all or substantially all of Target’s assets either directly or through one or more subsidiaries), in substantially the same proportions (as compared to the other beneficial owners of Target’s Voting Stock immediately prior to such Business Combination) as their beneficial ownership of Target’s Voting Stock immediately prior to such Business Combination, and (y) no Person beneficially owns, directly or indirectly, 30% or more of the voting power of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity (other than a direct or indirect parent entity of the surviving or acquiring entity, that, after giving effect to the Business Combination, beneficially owns, directly or indirectly, 100% of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity), or
|
(d)
|
approval by the shareholders of a definitive agreement or plan to liquidate or dissolve Target.
|
(i)
|
“Continuing Director” means an individual (A) who is, as of June 8, 2011, a director of Target, or (B) who becomes a director of Target after June 8, 2011, and whose initial appointment, or nomination for election by Target’s shareholders, was approved
|
(ii)
|
“Voting Stock” means all then-outstanding capital stock of Target entitled to vote generally in the election of directors of Target;
|
(iii)
|
“Person” means any individual, firm, corporation or other entity and shall include any group comprised of any person and any other person with whom such person or any affiliate or associate (as defined in Rule 14a-1(a) of the Exchange Act) of such person has any agreement, arrangement or understanding, directly or indirectly, for the purpose of acquiring, holding, voting or disposing of any capital stock of Target;
|
(iv)
|
“Target” means Target Corporation, a Minnesota corporation, and any successor thereof; and
|
(v)
|
“Exchange Act” means the Securities Exchange Act of 1934, as amended and in effect from time to time, and the regulations promulgated thereunder.
|
12.
|
“Pay Level”
|
NOTE:
|
Additional Definitions for particular purposes are contained in the text.
|
P.
|
CHANGE IN CONTROL
|
1.
|
If an Executive’s employment with the Corporation is terminated, whether involuntarily or by the Executive for “good reason” (as defined in Section II.P.5), within two years following a Change in Control, an Executive shall be eligible for Officer-ICP Payments.
|
2.
|
To the extent the Officer ICP-Payments are not subject to Code Section 409A (including pursuant to a short-term deferral exception under Treasury Regulation Section 1.409A-1(b)(4) and separation pay plan exception under Treasury Regulation Section 1.409A-1(b)(9)), or such Change in Control qualifies as a “change in control event” under Code Section 409A, the Officer-ICP Payments shall be made in a lump sum payment within 20 days of the Executive’s separation of service, as defined under Code Section 409A; provided that if the Executive is a Specified Employee, the distribution of any such Officer-ICP Payments subject to Code Section 409A will be made 6 months after the separation of service, as defined under Code Section 409A. The lump sum amount shall be determined by discounting the periodic Officer-ICP Payments by a rate equivalent to the annual prime rate as published in the Wall Street Journal on the first business day following the Officer-ICP Payments.
|
3.
|
To the extent the Officer-ICP Payments are subject to Code Section 409A, (after considering any exceptions to Code Section 409A, including the short-term deferral exception under Treasury Regulation Section 1.409A-1(b)(4) and separation pay plan exception under Treasury Regulation Section 1.409A-1(b)(9)) and such Change in Control does not qualify as a change in control event under Code Section 409A, the Officer-ICP Payments shall be made according to the payment schedule set forth in Section II.D of this Statement; provided that if the Executive is a Specified Employee, the distribution of any such Officer-ICP Payments subject to Code Section 409A will be made 6 months after Executive’s separation from service, as defined under Code Section 409A.
|
4.
|
Except for the Release required by Section II.K of this Statement, all other obligations or restrictions of Executive under this Statement shall terminate.
|
5.
|
For purposes of this Section II.P, “good reason” shall mean any material diminution of the Executive’s position, authority, duties or responsibilities (including the assignment of duties materially inconsistent with the Executive’s position or a material increase in the time Executive is required by the Corporation or its successor to travel), any reduction in salary or in the Executive’s aggregate bonus and incentive opportunities, any material reduction in the aggregate value of the Executive’s employee benefits (including retirement, welfare and fringe benefits), or relocation to a principal work site that is more than 40 miles from the Executive’s principal work site immediately prior to the Change in Control.
|
6.
|
If an Executive’s employment was terminated prior to a Change in Control, such Executive is receiving or is entitled to receive Officer-ICP Payments that will continue after the Change in Control, and the Change in Control qualified as a “change in control event” for purposes of Code Section 409A, then, subject to the six month delay for Specified Employees in effect under Section II.D.2, the Officer-ICP Payments due after such change in control event will be accelerated and paid to Executive in a lump sum as soon as practicable, but not more than 90 days following such change in control event. The lump sum under this Section II.P.6 will be calculated in the same manner as the lump sum calculated under Section II.P.2 above.
|
Q.
|
CERTAIN REDUCTION OF PAYMENTS BY THE CORPORATION
|
1.
|
Anything in this Officer-ICP to the contrary notwithstanding, the provisions of this Section Q shall apply to an Executive if the Auditor determines that each of a and b below are applicable.
|
a.
|
Payments hereunder, determined without application of this Section Q, either alone or together with other payments in the nature of compensation to the Executive which are contingent on or accelerated by a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation, or otherwise, would result in any portion of the payments hereunder being subject to an excise tax on excess parachute payments imposed under Code Section 4999.
|
b.
|
The excise tax imposed on the Executive under Section 4999 of the Code on excess parachute payments, from whatever source, would result in a lesser net aggregate present value of payments and distributions to the Executive (after subtraction of the excise tax) than if payments and distributions to the Executive were reduced to the maximum amount that could be made without incurring the excise tax.
|
2.
|
Under this Section Q the payments under this Officer-ICP shall be reduced (but not below zero) so that the present value of such payments and distributions shall equal the Reduced Amount. The “Reduced Amount” (which may be zero)
|
3.
|
If the Auditor determines that this Section Q is applicable to an Executive, it shall so advise the Corporation. The Corporation shall then promptly give the Executive notice to that effect together with a copy of the detailed calculation supporting such determination which shall include a statement of the Reduced Amount. Such notice shall also include a description of which and how much of the payments shall be eliminated or reduced (as long as after such election the aggregate present value of the payments equals the Reduced Amount.) For purposes of this Section Q, present value shall be determined in accordance with Section 280G of the Code. All the foregoing determinations made by the Auditor under this Section Q shall be made as promptly as practicable after it is determined that parachute payments will be made to the Executive if an elimination or reduction is not made. As promptly as practicable following the election hereunder, the Corporation shall pay to or for the benefit of the Executive such amounts as are then due to the Executive under this Officer-ICP and shall promptly pay to or for the benefit of the Executive in the future such amounts as become due to the Executive under this Officer-ICP.
|
4.
|
As a result of the uncertainty in the application of Section 280G of the Code at the time of the initial determination by the Auditor hereunder, it is possible that payments under this Officer-ICP will have been made which should not have been made (“Overpayment”) or that additional payments which will have not been made could have been made (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Auditor, based upon the assertion of a deficiency by the Internal Revenue Service against the Corporation or the Executive which the Auditor believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment shall be treated for all purposes as a loan to the Executive which the Executive shall repay together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by the Executive if and to the extent such payment would not reduce the amount which is subject to the excise tax under Section 4999 of the Code. In the event that the Auditor, based upon controlling precedent, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid to or for the benefit of the Executive together with interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code.
|
5.
|
In making its determination under this Section Q, the value of any non-cash benefit shall be determined by the Auditor in accordance with the principles of Section 280G(d)(3) of the Code.
|
6.
|
All determinations made by the Auditor under this Section Q shall be binding upon the Corporation and the Executive.
|
Dated:
3/24/2016
|
TARGET CORPORATION
By:
/s/ Stephanie Lundquist
Stephanie Lundquist
EVP & Chief HR Officer
|
|
|
Ratio of Earnings to Fixed Charges
|
Three Months Ended
|
|
Fiscal Year Ended
|
|||||||||||||||||||
(dollars in millions)
|
Apr 30,
2016 |
|
May 2,
2015 |
|
|
Jan 30,
2016 |
|
Jan 31,
2015 |
|
Feb 1,
2014 |
|
Feb 2,
2013 |
|
Jan 28,
2012 |
|
|||||||
Earnings from continuing operations before income taxes
|
$
|
897
|
|
$
|
999
|
|
|
$
|
4,923
|
|
$
|
3,653
|
|
$
|
4,121
|
|
$
|
5,056
|
|
$
|
4,621
|
|
Capitalized interest, net
|
5
|
|
3
|
|
|
16
|
|
(1
|
)
|
(14
|
)
|
(12
|
)
|
6
|
|
|||||||
Adjusted earnings from continuing operations before income taxes
|
902
|
|
1,002
|
|
|
4,939
|
|
3,652
|
|
4,107
|
|
5,044
|
|
4,627
|
|
|||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
(a)
|
157
|
|
157
|
|
|
616
|
|
619
|
|
641
|
|
721
|
|
750
|
|
|||||||
Interest portion of rental expense
|
27
|
|
27
|
|
|
108
|
|
108
|
|
108
|
|
106
|
|
110
|
|
|||||||
Total fixed charges
|
184
|
|
184
|
|
|
724
|
|
727
|
|
749
|
|
827
|
|
860
|
|
|||||||
Earnings from continuing operations before income taxes and fixed charges
|
$
|
1,086
|
|
$
|
1,186
|
|
|
$
|
5,663
|
|
$
|
4,379
|
|
$
|
4,856
|
|
$
|
5,871
|
|
$
|
5,487
|
|
Ratio of earnings to fixed charges
|
5.90
|
|
6.45
|
|
|
7.82
|
|
6.02
|
|
6.48
|
|
7.10
|
|
6.38
|
|
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.
|
Date: May 25, 2016
|
|
/s/ Brian C. Cornell
|
Brian C. Cornell
|
Chairman and Chief Executive Officer
|
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.
|
Date: May 25, 2016
|
|
/s/ Cathy R. Smith
|
Cathy R. Smith
|
Executive Vice President and Chief Financial Officer
|
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.
|
Date: May 25, 2016
|
|
/s/ Brian C. Cornell
|
Brian C. Cornell
|
Chairman and Chief Executive Officer
|
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.
|
Date: May 25, 2016
|
|
/s/ Cathy R. Smith
|
Cathy R. Smith
|
Executive Vice President and Chief Financial Officer
|