UNITED STATES
SECURITIES AND EXCHANGE COMMISSION |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.0833 per share | TGT | New York Stock Exchange |
Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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☐
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Emerging growth company
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☐
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TARGET CORPORATION |
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2020 Form 10-K |
1
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Owned Brands | ||||||||
A New Day™ | Hearth & Hand™ with Magnolia | Shade & Shore™ | ||||||
All in Motion™ | heyday™ | Simply Balanced™ | ||||||
Archer Farms™ | Hyde & EEK! Boutique™ | Smartly™ | ||||||
Art Class™ | JoyLab™ | Smith & Hawken™ | ||||||
Auden™ | Knox Rose™ | Sonia Kashuk™ | ||||||
Ava & Viv™ | Kona Sol™ | Spritz™ | ||||||
Boots & Barkley™ | Made By Design™ | Stars Above™ | ||||||
Bullseye's Playground™ | Market Pantry™ | Sun Squad™ | ||||||
Casaluna™ | More Than Magic™ | Threshold™ | ||||||
Cat & Jack™ | Opalhouse™ | Universal Thread™ | ||||||
Cloud Island™ | Open Story™ | up & up™ | ||||||
Colsie™ | Original Use™ | Wild Fable™ | ||||||
Embark™ | Pillowfort™ | Wondershop™ | ||||||
Everspring™ | Project 62™ | Xhilaration™ | ||||||
Good & Gather™ | Prologue™ | |||||||
Goodfellow & Co™ | Room Essentials™ | |||||||
Exclusive Adult Beverage Brands | ||||||||
California Roots™ | Rosé Bae™ | Wine Cube™ | ||||||
Mystic Reef™ | The Collection™ |
TARGET CORPORATION |
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2020 Form 10-K |
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TARGET CORPORATION |
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2020 Form 10-K |
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TARGET CORPORATION |
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2020 Form 10-K |
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BUSINESS & RISK FACTORS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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RISK FACTORS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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RISK FACTORS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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RISK FACTORS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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RISK FACTORS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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RISK FACTORS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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RISK FACTORS & UNRESOLVED STAFF COMMENTS | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
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PROPERTIES | ||||||||
Stores as of
January 30, 2021 |
Stores |
Retail Sq. Ft.
(in thousands) |
Stores as of
January 30, 2021 |
Stores |
Retail Sq. Ft.
(in thousands) |
|||||||||||||||
Alabama | 22 | 3,132 | Montana | 7 | 777 | |||||||||||||||
Alaska | 3 | 504 | Nebraska | 14 | 2,005 | |||||||||||||||
Arizona | 46 | 6,080 | Nevada | 18 | 2,262 | |||||||||||||||
Arkansas | 9 | 1,165 | New Hampshire | 9 | 1,148 | |||||||||||||||
California | 307 | 36,968 | New Jersey | 47 | 5,992 | |||||||||||||||
Colorado | 42 | 6,244 | New Mexico | 10 | 1,185 | |||||||||||||||
Connecticut | 21 | 2,731 | New York | 87 | 10,289 | |||||||||||||||
Delaware | 3 | 440 | North Carolina | 51 | 6,540 | |||||||||||||||
District of Columbia | 5 | 342 | North Dakota | 4 | 554 | |||||||||||||||
Florida | 126 | 17,142 | Ohio | 64 | 7,829 | |||||||||||||||
Georgia | 50 | 6,814 | Oklahoma | 15 | 2,167 | |||||||||||||||
Hawaii | 7 | 1,111 | Oregon | 20 | 2,312 | |||||||||||||||
Idaho | 6 | 664 | Pennsylvania | 75 | 9,094 | |||||||||||||||
Illinois | 99 | 12,131 | Rhode Island | 4 | 517 | |||||||||||||||
Indiana | 32 | 4,185 | South Carolina | 19 | 2,359 | |||||||||||||||
Iowa | 21 | 2,859 | South Dakota | 5 | 580 | |||||||||||||||
Kansas | 17 | 2,385 | Tennessee | 30 | 3,816 | |||||||||||||||
Kentucky | 14 | 1,571 | Texas | 153 | 21,029 | |||||||||||||||
Louisiana | 15 | 2,120 | Utah | 14 | 1,950 | |||||||||||||||
Maine | 5 | 630 | Vermont | 1 | 60 | |||||||||||||||
Maryland | 40 | 4,960 | Virginia | 60 | 7,754 | |||||||||||||||
Massachusetts | 49 | 5,506 | Washington | 40 | 4,424 | |||||||||||||||
Michigan | 53 | 6,286 | West Virginia | 6 | 755 | |||||||||||||||
Minnesota | 73 | 10,315 | Wisconsin | 36 | 4,427 | |||||||||||||||
Mississippi | 6 | 743 | Wyoming | 2 | 187 | |||||||||||||||
Missouri | 35 | 4,608 | ||||||||||||||||||
Total | 1,897 | 241,648 |
Stores and Distribution Centers as of January 30, 2021 | Stores |
Distribution
Centers (a)
|
||||||
Owned | 1,526 | 34 | ||||||
Leased | 214 | 10 | ||||||
Owned buildings on leased land | 157 | — | ||||||
Total | 1,897 | 44 |
TARGET CORPORATION |
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2020 Form 10-K |
12
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LEGAL PROCEEDINGS & MINE SAFETY DISCLOSURES | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
13
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EXECUTIVE OFFICERS | ||||||||
Name | Title and Business Experience | Age | ||||||
Katie M. Boylan |
Executive Vice President and Chief Communications Officer since February 2021. Senior Vice President and Chief Communications Officer from January 2019 to February 2021. Senior Vice President, Communications from June 2017 to January 2019. Vice President, Communications from December 2015 to June 2017.
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44 | ||||||
Brian C. Cornell | Chairman of the Board and Chief Executive Officer since August 2014. | 62 | ||||||
Michael J. Fiddelke | Executive Vice President and Chief Financial Officer since November 2019. Senior Vice President, Operations from August 2018 to October 2019. Senior Vice President, Merchandising Capabilities from March 2017 to August 2018. Senior Vice President, Financial Planning & Analysis from July 2015 to March 2017. | 44 | ||||||
Rick H. Gomez | Executive Vice President and Chief Food and Beverage Officer since February 2021. Executive Vice President and Chief Marketing, Digital & Strategy Officer from December 2019 to February 2021. Executive Vice President and Chief Marketing & Digital Officer from January 2019 to December 2019. Executive Vice President and Chief Marketing Officer from January 2017 to January 2019. Senior Vice President, Brand and Category Marketing from April 2013 to January 2017. | 51 | ||||||
A. Christina Hennington
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Executive Vice President and Chief Growth Officer since February 2021. Executive Vice President and Chief Merchandising Officer, Hardlines, Essentials and Capabilities from January 2020 to February 2021. Senior Vice President, Group Merchandise Manager, Essentials, Beauty, Hardlines and Services from January 2019 to January 2020. Senior Vice President, Merchandising Essentials, Beauty and Wellness from April 2017 to January 2019. Senior Vice President, Merchandising Transformation and Operations from August 2015 to April 2017. | 46 | ||||||
Melissa K. Kremer | Executive Vice President and Chief Human Resources Officer since January 2019. Senior Vice President, Talent and Organizational Effectiveness from October 2017 to January 2019. Vice President, Human Resources, Merchandising, Strategy & Innovation, from September 2015 to October 2017. | 43 | ||||||
Don H. Liu | Executive Vice President, Chief Legal & Risk Officer and Corporate Secretary since October 2017. Executive Vice President, Chief Legal Officer and Corporate Secretary from August 2016 to September 2017. Executive Vice President, General Counsel and Corporate Secretary of Xerox Corporation from July 2014 to August 2016. | 59 | ||||||
Michael E. McNamara | Executive Vice President and Chief Information Officer since January 2019. Executive Vice President and Chief Information & Digital Officer from September 2016 to January 2019. Executive Vice President and Chief Information Officer from June 2015 to September 2016. | 56 | ||||||
John J. Mulligan | Executive Vice President and Chief Operating Officer since September 2015. | 55 | ||||||
Jill K. Sando | Executive Vice President and Chief Merchandising Officer since February 2021. Executive Vice President and Chief Merchandising Officer, Style and Owned Brands from January 2020 to February 2021. Senior Vice President, Group Merchandise Manager, Apparel & Accessories and Home from January 2019 to January 2020. Senior Vice President, Home from May 2014 to January 2019. | 52 | ||||||
Mark J. Schindele | Executive Vice President and Chief Stores Officer since January 2020. Senior Vice President, Target Properties from January 2015 to January 2020. | 52 | ||||||
Cara A. Sylvester |
Executive Vice President and Chief Marketing & Digital Officer since February 2021. Senior Vice President, Home from March 2019 to February 2021. Vice President, Beauty & Dermstore from June 2017 to March 2019. From March 2014 to June 2017, Ms. Sylvester held different leadership positions in Housewares.
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43 | ||||||
Laysha L. Ward |
Executive Vice President and Chief External Engagement Officer since January 2017.
Executive Vice President and Chief Corporate Social Responsibility Officer from December 2014 to January 2017. |
53 |
TARGET CORPORATION |
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2020 Form 10-K |
14
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OTHER INFORMATION | ||||||||
TARGET CORPORATION |
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2020 Form 10-K |
15
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OTHER INFORMATION | ||||||||
Fiscal Years Ended | ||||||||||||||||||||
January 30, 2016 | January 28, 2017 | February 3, 2018 | February 2, 2019 | February 1, 2020 | January 30, 2021 | |||||||||||||||
Target | $ | 100.00 | $ | 90.84 | $ | 108.44 | $ | 109.33 | $ | 175.54 | $ | 292.98 | ||||||||
S&P 500 Index | 100.00 | 120.87 | 148.47 | 148.38 | 180.37 | 211.48 | ||||||||||||||
Current Peer Group | 100.00 | 111.09 | 159.84 | 166.68 | 201.97 | 280.21 | ||||||||||||||
Previous Peer Group | 100.00 | 111.11 | 160.34 | 167.11 | 202.85 | 283.29 |
TARGET CORPORATION |
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2020 Form 10-K |
16
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
EXECUTIVE OVERVIEW & FINANCIAL SUMMARY |
TARGET CORPORATION |
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2020 Form 10-K |
17
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
EXECUTIVE OVERVIEW & FINANCIAL SUMMARY |
Earnings Per Share From
Continuing Operations
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Percent Change | ||||||||||||||||
2020 | 2019 | 2018 | 2020/2019 | 2019/2018 | |||||||||||||
GAAP diluted earnings per share | $ | 8.64 | $ | 6.34 | $ | 5.50 | 36.3 | % | 15.4 | % | |||||||
Adjustments | 0.78 | 0.05 | (0.10) | ||||||||||||||
Adjusted diluted earnings per share | $ | 9.42 | $ | 6.39 | $ | 5.39 | 47.4 | % | 18.4 | % |
TARGET CORPORATION |
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2020 Form 10-K |
18
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
FINANCIAL SUMMARY & ANALYSIS OF OPERATIONS |
Summary of Operating Income | Percent Change | ||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2018 | 2020/2019 | 2019/2018 | ||||||||||||
Sales | $ | 92,400 | $ | 77,130 | $ | 74,433 | 19.8 | % | 3.6 | % | |||||||
Other revenue | 1,161 | 982 | 923 | 18.2 | 6.3 | ||||||||||||
Total revenue | 93,561 | 78,112 | 75,356 | 19.8 | 3.7 | ||||||||||||
Cost of sales | 66,177 | 54,864 | 53,299 | 20.6 | 2.9 | ||||||||||||
SG&A expenses | 18,615 | 16,233 | 15,723 | 14.7 | 3.2 | ||||||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales)
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2,230 | 2,357 | 2,224 | (5.4) | 6.0 | ||||||||||||
Operating income | $ | 6,539 | $ | 4,658 | $ | 4,110 | 40.4 | % | 13.3 | % |
Rate Analysis | 2020 | 2019 | 2018 | ||||||||
Gross margin rate | 28.4 | % | 28.9 | % | 28.4 | % | |||||
SG&A expense rate | 19.9 | 20.8 | 20.9 | ||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales) expense rate
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2.4 | 3.0 | 3.0 | ||||||||
Operating income margin rate | 7.0 | 6.0 | 5.5 |
TARGET CORPORATION |
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2020 Form 10-K |
19
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF OPERATIONS |
Comparable Sales | 2020 | 2019 | 2018 | ||||||||
Comparable sales change | 19.3 | % | 3.4 | % | 5.0 | % | |||||
Drivers of change in comparable sales | |||||||||||
Number of transactions | 3.7 | 2.7 | 5.0 | ||||||||
Average transaction amount | 15.0 | 0.7 | 0.1 |
Contribution to Comparable Sales Change | 2020 | 2019 | 2018 | ||||||||
Stores originated channel comparable sales change
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7.2 | % | 1.4 | % | 3.2 | % | |||||
Contribution from digitally originated sales to comparable sales
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12.1 | 1.9 | 1.8 | ||||||||
Total comparable sales change | 19.3 | % | 3.4 | % | 5.0 | % |
Sales by Channel | 2020 | 2019 | 2018 | ||||||||
Stores originated | 82.1 | % | 91.2 | % | 92.9 | % | |||||
Digitally originated | 17.9 | 8.8 | 7.1 | ||||||||
Total | 100 | % | 100 | % | 100 | % |
TARGET CORPORATION |
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2020 Form 10-K |
20
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF OPERATIONS |
Sales by Product Category | 2020 | 2019 | 2018 | ||||||||
Apparel and accessories | 16 | % | 19 | % | 18 | % | |||||
Beauty and household essentials | 26 | 27 | 26 | ||||||||
Food and beverage | 20 | 19 | 20 | ||||||||
Hardlines | 18 | 16 | 17 | ||||||||
Home furnishings and décor | 20 | 19 | 19 | ||||||||
Total | 100 | % | 100 | % | 100 | % |
RedCard Penetration | 2020 | 2019 | 2018 | ||||||||
Target Debit Card | 12.3 | % | 12.6 | % | 13.0 | % | |||||
Target Credit Cards | 9.2 | 10.7 | 10.9 | ||||||||
Total RedCard Penetration | 21.5 | % | 23.3 | % | 23.8 | % |
TARGET CORPORATION |
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2020 Form 10-K |
21
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF OPERATIONS |
Change in Number of Stores | 2020 | 2019 | ||||||
Beginning store count | 1,868 | 1,844 | ||||||
Opened | 30 | 26 | ||||||
Closed | (1) | (2) | ||||||
Ending store count | 1,897 | 1,868 | ||||||
Number of Stores and
Retail Square Feet |
Number of Stores |
Retail Square Feet (a)
|
|||||||||||||||
January 30, 2021 | February 1, 2020 | January 30, 2021 | February 1, 2020 | ||||||||||||||
170,000 or more sq. ft. | 273 | 272 | 48,798 | 48,619 | |||||||||||||
50,000 to 169,999 sq. ft. | 1,509 | 1,505 | 189,508 | 189,227 | |||||||||||||
49,999 or less sq. ft. | 115 | 91 | 3,342 | 2,670 | |||||||||||||
Total | 1,897 | 1,868 | 241,648 | 240,516 |
TARGET CORPORATION |
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2020 Form 10-K |
22
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
Reconciliation of Non-GAAP
Adjusted EPS |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(millions, except per share data) | Pretax | Net of Tax | Per Share Amounts | Pretax | Net of Tax | Per Share Amounts | Pretax | Net of Tax | Per Share Amounts | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP diluted earnings per share from continuing operations
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$ | 8.64 | $ | 6.34 | $ | 5.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | $ | 512 | $ | 379 | $ | 0.75 | $ | 10 | $ | 8 | $ | 0.01 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Loss on investment (a)
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19 | 14 | 0.03 | 41 | 31 | 0.06 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Tax Act (b)
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— | — | — | — | — | — | — | (36) | (0.07) | |||||||||||||||||||||||||||||||||||||||||||||||
Other (c)
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28 | 20 | 0.04 | (17) | (13) | (0.02) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other income tax matters (d)
|
— | (21) | (0.04) | — | — | — | — | (18) | (0.03) | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations
|
$ | 9.42 | $ | 6.39 | $ | 5.39 |
EBIT and EBITDA | Percent Change | ||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2018 | 2020/2019 | 2019/2018 | ||||||||||||
Net earnings from continuing operations | $ | 4,368 | $ | 3,269 | $ | 2,930 | 33.6 | % | 11.6 | % | |||||||
+ Provision for income taxes | 1,178 | 921 | 746 | 27.9 | 23.4 | ||||||||||||
+ Net interest expense | 977 | 477 | 461 | 105.1 | 3.3 | ||||||||||||
EBIT
|
$ | 6,523 | $ | 4,667 | $ | 4,137 | 39.8 | % | 12.8 | % | |||||||
+ Total depreciation and amortization (a)
|
2,485 | 2,604 | 2,474 | (4.6) | 5.3 | ||||||||||||
EBITDA
|
$ | 9,008 | $ | 7,271 | $ | 6,611 | 23.9 | % | 10.0 | % |
TARGET CORPORATION |
|
2020 Form 10-K |
23
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
After-Tax Return on Invested Capital | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Trailing Twelve Months | ||||||||||||||||||||
Numerator
|
January 30, 2021 | February 1, 2020 | ||||||||||||||||||
Operating income
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$ | 6,539 | $ | 4,658 | ||||||||||||||||
+ Net other income / (expense) | (16) | 9 | ||||||||||||||||||
EBIT | 6,523 | 4,667 | ||||||||||||||||||
+ Operating lease interest (a)
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87 | 86 | ||||||||||||||||||
- Income taxes (b)
|
1,404 | 1,045 | ||||||||||||||||||
Net operating profit after taxes | $ | 5,206 | $ | 3,708 |
Denominator
|
January 30, 2021 | February 1, 2020 | February 2, 2019 | |||||||||||||||||
Current portion of long-term debt and other borrowings | $ | 1,144 | $ | 161 | $ | 1,052 | ||||||||||||||
+ Noncurrent portion of long-term debt | 11,536 | 11,338 | 10,223 | |||||||||||||||||
+ Shareholders' investment | 14,440 | 11,833 | 11,297 | |||||||||||||||||
+ Operating lease liabilities (c)
|
2,429 | 2,475 | 2,170 | |||||||||||||||||
- Cash and cash equivalents | 8,511 | 2,577 | 1,556 | |||||||||||||||||
Invested capital | $ | 21,038 | $ | 23,230 | $ | 23,186 | ||||||||||||||
Average invested capital (d)
|
$ | 22,134 | $ | 23,208 |
After-tax return on invested capital | 23.5 | % | 16.0 | % |
TARGET CORPORATION |
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2020 Form 10-K |
24
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF FINANCIAL CONDITION |
TARGET CORPORATION |
|
2020 Form 10-K |
25
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF FINANCIAL CONDITION |
TARGET CORPORATION |
|
2020 Form 10-K |
26
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF FINANCIAL CONDITION |
Credit Ratings | Moody's | Standard and Poor's | Fitch | ||||||||
Long-term debt | A2 | A | A- | ||||||||
Commercial paper | P-1 | A-1 | F1 |
TARGET CORPORATION |
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2020 Form 10-K |
27
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
ANALYSIS OF FINANCIAL CONDITION |
TARGET CORPORATION |
|
2020 Form 10-K |
28
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
NEW ACCOUNTING PRONOUNCEMENTS & FORWARD-LOOKING STATEMENTS |
TARGET CORPORATION |
|
2020 Form 10-K |
29
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MANAGEMENT'S DISCUSSION AND ANALYSIS | ||||||||
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
TARGET CORPORATION |
|
2020 Form 10-K |
30
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FINANCIAL STATEMENTS | ||||||||
INDEX |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||
TARGET CORPORATION |
|
2020 Form 10-K |
31
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FINANCIAL STATEMENTS | ||||||||
REPORTS |
/s/ Brian C. Cornell
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/s/ Michael J. Fiddelke | |||||||
Brian C. Cornell
Chairman and Chief Executive Officer March 10, 2021 |
Michael J. Fiddelke
Executive Vice President and Chief Financial Officer |
|||||||
TARGET CORPORATION |
|
2020 Form 10-K |
32
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FINANCIAL STATEMENTS | ||||||||
REPORTS |
TARGET CORPORATION |
|
2020 Form 10-K |
33
|
FINANCIAL STATEMENTS | ||||||||
REPORTS |
/s/ Brian C. Cornell
|
/s/ Michael J. Fiddelke | |||||||
Brian C. Cornell
Chairman and Chief Executive Officer March 10, 2021 |
Michael J. Fiddelke
Executive Vice President and Chief Financial Officer |
|||||||
TARGET CORPORATION |
|
2020 Form 10-K |
34
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FINANCIAL STATEMENTS | ||||||||
(millions, except per share data) | 2020 | 2019 | 2018 | ||||||||
Sales | $ | 92,400 | $ | 77,130 | $ | 74,433 | |||||
Other revenue | 1,161 | 982 | 923 | ||||||||
Total revenue | 93,561 | 78,112 | 75,356 | ||||||||
Cost of sales | 66,177 | 54,864 | 53,299 | ||||||||
Selling, general and administrative expenses | 18,615 | 16,233 | 15,723 | ||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales)
|
2,230 | 2,357 | 2,224 | ||||||||
Operating income
|
6,539 | 4,658 | 4,110 | ||||||||
Net interest expense | 977 | 477 | 461 | ||||||||
Net other (income) / expense | 16 | (9) | (27) | ||||||||
Earnings from continuing operations before income taxes | 5,546 | 4,190 | 3,676 | ||||||||
Provision for income taxes | 1,178 | 921 | 746 | ||||||||
Net earnings from continuing operations | 4,368 | 3,269 | 2,930 | ||||||||
Discontinued operations, net of tax | — | 12 | 7 | ||||||||
Net earnings | $ | 4,368 | $ | 3,281 | $ | 2,937 | |||||
Basic earnings per share | |||||||||||
Continuing operations | $ | 8.72 | $ | 6.39 | $ | 5.54 | |||||
Discontinued operations | — | 0.02 | 0.01 | ||||||||
Net earnings per share | $ | 8.72 | $ | 6.42 | $ | 5.55 | |||||
Diluted earnings per share | |||||||||||
Continuing operations | $ | 8.64 | $ | 6.34 | $ | 5.50 | |||||
Discontinued operations | — | 0.02 | 0.01 | ||||||||
Net earnings per share | $ | 8.64 | $ | 6.36 | $ | 5.51 | |||||
Weighted average common shares outstanding | |||||||||||
Basic | 500.6 | 510.9 | 528.6 | ||||||||
Diluted | 505.4 | 515.6 | 533.2 | ||||||||
Antidilutive shares | — | — | — |
TARGET CORPORATION |
|
2020 Form 10-K |
35
|
FINANCIAL STATEMENTS | ||||||||
(millions) | 2020 | 2019 | 2018 | ||||||||
Net earnings | $ | 4,368 | $ | 3,281 | $ | 2,937 | |||||
Other comprehensive income / (loss), net of tax
|
|||||||||||
Pension benefit liabilities
|
102 | (65) | (52) | ||||||||
Currency translation adjustment and cash flow hedges
|
10 | 2 | (6) | ||||||||
Other comprehensive income / (loss)
|
112 | (63) | (58) | ||||||||
Comprehensive income
|
$ | 4,480 | $ | 3,218 | $ | 2,879 |
TARGET CORPORATION |
|
2020 Form 10-K |
36
|
FINANCIAL STATEMENTS | ||||||||
(millions, except footnotes) | January 30, 2021 | February 1, 2020 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 8,511 | $ | 2,577 | ||||
Inventory | 10,653 | 8,992 | ||||||
Other current assets | 1,592 | 1,333 | ||||||
Total current assets | 20,756 | 12,902 | ||||||
Property and equipment | ||||||||
Land | 6,141 | 6,036 | ||||||
Buildings and improvements | 31,557 | 30,603 | ||||||
Fixtures and equipment | 5,914 | 6,083 | ||||||
Computer hardware and software | 2,765 | 2,692 | ||||||
Construction-in-progress | 780 | 533 | ||||||
Accumulated depreciation | (20,278) | (19,664) | ||||||
Property and equipment, net | 26,879 | 26,283 | ||||||
Operating lease assets | 2,227 | 2,236 | ||||||
Other noncurrent assets | 1,386 | 1,358 | ||||||
Total assets | $ | 51,248 | $ | 42,779 | ||||
Liabilities and shareholders' investment | ||||||||
Accounts payable | $ | 12,859 | $ | 9,920 | ||||
Accrued and other current liabilities | 6,122 | 4,406 | ||||||
Current portion of long-term debt and other borrowings | 1,144 | 161 | ||||||
Total current liabilities
|
20,125 | 14,487 | ||||||
Long-term debt and other borrowings | 11,536 | 11,338 | ||||||
Noncurrent operating lease liabilities | 2,218 | 2,275 | ||||||
Deferred income taxes | 990 | 1,122 | ||||||
Other noncurrent liabilities | 1,939 | 1,724 | ||||||
Total noncurrent liabilities | 16,683 | 16,459 | ||||||
Shareholders' investment | ||||||||
Common stock | 42 | 42 | ||||||
Additional paid-in capital | 6,329 | 6,226 | ||||||
Retained earnings | 8,825 | 6,433 | ||||||
Accumulated other comprehensive loss | (756) | (868) | ||||||
Total shareholders' investment | 14,440 | 11,833 | ||||||
Total liabilities and shareholders' investment | $ | 51,248 | $ | 42,779 |
TARGET CORPORATION |
|
2020 Form 10-K |
37
|
FINANCIAL STATEMENTS | ||||||||
(millions) | 2020 | 2019 | 2018 | ||||||||
Operating activities | |||||||||||
Net earnings
|
$ | 4,368 | $ | 3,281 | $ | 2,937 | |||||
Earnings from discontinued operations, net of tax
|
— | 12 | 7 | ||||||||
Net earnings from continuing operations | 4,368 | 3,269 | 2,930 | ||||||||
Adjustments to reconcile net earnings to cash provided by operations: | |||||||||||
Depreciation and amortization | 2,485 | 2,604 | 2,474 | ||||||||
Share-based compensation expense | 200 | 147 | 132 | ||||||||
Deferred income taxes | (184) | 178 | 322 | ||||||||
Loss on debt extinguishment | 512 | 10 | — | ||||||||
Noncash losses / (gains) and other, net
|
86 | 29 | 95 | ||||||||
Changes in operating accounts: | |||||||||||
Inventory | (1,661) | 505 | (900) | ||||||||
Other assets | (137) | 18 | (299) | ||||||||
Accounts payable | 2,925 | 140 | 1,127 | ||||||||
Accrued and other liabilities | 1,931 | 199 | 89 | ||||||||
Cash provided by operating activities—continuing operations | 10,525 | 7,099 | 5,970 | ||||||||
Cash provided by operating activities—discontinued operations
|
— | 18 | 3 | ||||||||
Cash provided by operations | 10,525 | 7,117 | 5,973 | ||||||||
Investing activities | |||||||||||
Expenditures for property and equipment | (2,649) | (3,027) | (3,516) | ||||||||
Proceeds from disposal of property and equipment | 42 | 63 | 85 | ||||||||
Other investments | 16 | 20 | 15 | ||||||||
Cash required for investing activities | (2,591) | (2,944) | (3,416) | ||||||||
Financing activities | |||||||||||
Additions to long-term debt | 2,480 | 1,739 | — | ||||||||
Reductions of long-term debt | (2,415) | (2,069) | (281) | ||||||||
Dividends paid | (1,343) | (1,330) | (1,335) | ||||||||
Repurchase of stock | (745) | (1,565) | (2,124) | ||||||||
Stock option exercises | 23 | 73 | 96 | ||||||||
Cash required for financing activities | (2,000) | (3,152) | (3,644) | ||||||||
Net increase / (decrease) in cash and cash equivalents
|
5,934 | 1,021 | (1,087) | ||||||||
Cash and cash equivalents at beginning of period | 2,577 | 1,556 | 2,643 | ||||||||
Cash and cash equivalents at end of period | $ | 8,511 | $ | 2,577 | $ | 1,556 | |||||
Supplemental information | |||||||||||
Interest paid, net of capitalized interest | $ | 939 | $ | 492 | $ | 476 | |||||
Income taxes paid | 1,031 | 696 | 373 | ||||||||
Leased assets obtained in exchange for new finance lease liabilities | 428 | 379 | 130 | ||||||||
Leased assets obtained in exchange for new operating lease liabilities | 262 | 464 | 246 |
TARGET CORPORATION |
|
2020 Form 10-K |
38
|
FINANCIAL STATEMENTS | ||||||||
(millions) |
Common
Stock Shares |
Stock
Par Value |
Additional
Paid-in Capital |
Retained
Earnings
|
Accumulated Other
Comprehensive
(Loss) / Income
|
Total | ||||||||||||||
February 3, 2018 | 541.7 | $ | 45 | $ | 5,858 | $ | 6,495 | $ | (747) | $ | 11,651 | |||||||||
Net earnings | — | — | — | 2,937 | — | 2,937 | ||||||||||||||
Other comprehensive loss | — | — | — | — | (58) | (58) | ||||||||||||||
Dividends declared | — | — | — | (1,347) | — | (1,347) | ||||||||||||||
Repurchase of stock | (27.2) | (2) | — | (2,068) | — | (2,070) | ||||||||||||||
Stock options and awards | 3.3 | — | 184 | — | — | 184 | ||||||||||||||
February 2, 2019 | 517.8 | $ | 43 | $ | 6,042 | $ | 6,017 | $ | (805) | $ | 11,297 | |||||||||
Net earnings | — | — | — | 3,281 | — | 3,281 | ||||||||||||||
Other comprehensive loss | — | — | — | — | (63) | (63) | ||||||||||||||
Dividends declared | — | — | — | (1,345) | — | (1,345) | ||||||||||||||
Repurchase of stock | (16.0) | (1) | — | (1,520) | — | (1,521) | ||||||||||||||
Stock options and awards | 2.4 | — | 184 | — | — | 184 | ||||||||||||||
February 1, 2020 | 504.2 | $ | 42 | $ | 6,226 | $ | 6,433 | $ | (868) | $ | 11,833 | |||||||||
Net earnings | — | — | — | 4,368 | — | 4,368 | ||||||||||||||
Other comprehensive income | — | — | — | — | 112 | 112 | ||||||||||||||
Dividends declared | — | — | — | (1,367) | — | (1,367) | ||||||||||||||
Repurchase of stock | (5.7) | — | — | (609) | — | (609) | ||||||||||||||
Stock options and awards | 2.4 | — | 103 | — | — | 103 | ||||||||||||||
January 30, 2021 | 500.9 | $ | 42 | $ | 6,329 | $ | 8,825 | $ | (756) | $ | 14,440 |
TARGET CORPORATION |
|
2020 Form 10-K |
39
|
FINANCIAL STATEMENTS | ||||||||
NOTES |
TARGET CORPORATION |
|
2020 Form 10-K |
40
|
FINANCIAL STATEMENTS | ||||||||
NOTES |
Revenues
(millions)
|
2020 | 2019 | 2018 | ||||||||
Apparel and accessories (a)
|
$ | 14,772 | $ | 14,304 | $ | 13,434 | |||||
Beauty and household essentials (b)
|
24,461 | 20,616 | 19,296 | ||||||||
Food and beverage (c)
|
18,135 | 15,039 | 14,585 | ||||||||
Hardlines (d)
|
16,626 | 12,595 | 12,709 | ||||||||
Home furnishings and décor (e)
|
18,231 | 14,430 | 14,298 | ||||||||
Other | 175 | 146 | 111 | ||||||||
Sales | 92,400 | 77,130 | 74,433 | ||||||||
Credit card profit sharing | 666 | 680 | 673 | ||||||||
Other | 495 | 302 | 250 | ||||||||
Other revenue | 1,161 | 982 | 923 | ||||||||
Total revenue | $ | 93,561 | $ | 78,112 | $ | 75,356 |
TARGET CORPORATION |
|
2020 Form 10-K |
41
|
FINANCIAL STATEMENTS | ||||||||
NOTES |
Gift Card Liability Activity
(millions)
|
February 1, 2020 |
Gift Cards
Issued During
Current Period
But Not
Redeemed (b)
|
Revenue
Recognized From Beginning Liability |
January 30, 2021 | |||||||||||||||||||
Gift card liability (a)
|
$ | 935 | $ | 739 | $ | (639) |