What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-03-10 compared with 2020-03-11 · 63 added, 32 removed, 47 unchanged (67% of the section changed)

5 unchanged sentences

Financial Highlights

For information on key financial highlights, see Part II , Item 6 , Selected Financial Data , and Part II , Item 7 , Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A).

For information on key financial highlights, see Part II , Item 7 , Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A).

A larger share of annual revenues and earnings traditionally occurs in the fourth quarter because it includes the November and December holiday sales period.

6 unchanged sentences

Approximately one-third of 2020 sales was related to our owned and exclusive brands, including but not limited to the following:

A New Day™ Hyde & EEK!

A New Day™ Hearth & Hand™ with Magnolia Shade & Shore™

All in Motion™ heyday™ Simply Balanced™

Archer Farms™ Hyde & EEK!

Boutique™ Smartly™

All in Motion™ JoyLab™ Smith & Hawken®

Archer Farms® Kona Sol™ Sonia Kashuk®

Art Class™ Made By Design™ Spritz™

Auden™ Market Pantry® Stars Above™

Ava & Viv® More Than Magic™ Sun Squad™

Boots & Barkley® Opalhouse™ Sutton & Dodge®

Cat & Jack™ Open Story™ Threshold™

Cloud Island™ Original Use™ Universal Thread™

Colsie™ Pillowfort™ up & up®

Everspring™ Project 62™ Wild Fable™

Good & Gather™ Prologue™ Wondershop™

Goodfellow & Co™ Room Essentials® Xhilaration®

Hearth & Hand™ with Magnolia Shade & Shore™

heyday™ Simply Balanced™

Exclusive Brands

California Roots™ Isabel Maternity™ by Ingrid & Isabel® The Collection

Defy & Inspire™ Just One You® made by carter's® Wine Cube®

Fieldcrest® Kristin Ess Who What Wear™

Hand Made Modern® Rosé Bae™

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

5 unchanged sentences

(CVS) operates pharmacies and clinics in our stores under a perpetual operating agreement from which we generate annual occupancy income.

Customer Loyalty Program s

In 2020, we announced a partnership with Ulta Beauty under which we will operate Ulta Beauty at Target , a shop-in-shop experience debuting on Target.com and in more than 100 Target locations beginning in 2021, with plans to scale to hundreds more over time.

Customer Loyalty Programs

Our guests receive a 5 percent discount on nearly all purchases and receive free shipping at Target.com when they use their Target Debit Card, Target Credit Card, or Target™ MasterCard ® (collectively, RedCards™).

We also seek to drive customer loyalty and trip frequency through our Target Circle program, where members earn 1 percent rewards on nearly all non-RedCard purchases and other benefits.

We also seek to drive customer loyalty and trip frequency through our Target Circle program, where members earn 1 percent rewards on nearly all non-RedCard purchases, among other benefits.

The vast majority of merchandise is distributed to our stores through our network of distribution centers.

3 unchanged sentences

(Shipt), and through guest pick-up at our stores.

Our stores fulfill the majority of the digitally originated sales, which allows improved product availability, faster delivery times, and reduced shipping costs.

As of February 1, 2020, we employed approximately 368,000 full-time, part-time, and seasonal employees, referred to as "team members." Because of the seasonal nature of the retail business, employment levels peak in the holiday season.

We offer a broad range of company-paid benefits to our team members.

Eligibility for and the level of benefits vary depending on team members' full-time or part-time status, compensation level, date of hire, and/or length of service.

Company-paid benefits include a 401(k) plan, medical and dental plans, disability insurance, paid vacation, tuition reimbursement, various team member assistance programs, life insurance, a pension plan (closed to new participants, with limited exceptions), and merchandise and other discounts.

We believe our team member relations are good.

Our stores fulfill the majority of the digitally originated sales, which allows improved product availability, faster fulfillment times, reduced shipping costs, and allows us to offer guests a suite of same-day fulfillment options such as Order Pickup, Drive Up, and Shipt.

Human Capital Management

At Target, our purpose is to help all families discover the joy of everyday life.

In support of this purpose we invest in our team, our most important asset, by giving them opportunities to grow professionally, take care of themselves, each other and their families, and to make a difference for our guests and our communities.

We are among the largest private employers in the U.S., and our workforce has varying goals and expectations of their employment relationship, from team members looking to build a career to students, retirees and others who are seeking to supplement their income in an enjoyable atmosphere.

We seek to be an employer of choice to attract and retain top talent no matter their objectives in seeking employment.

To that end, we strive to foster an engaged, diverse, inclusive, safe, purpose-driven culture where employees, referred to as "team members," have equitable opportunities for success.

As of January 30, 2021, we employed approximately 409,000 full-time, part-time, and seasonal team members.

Because of the seasonal nature of the retail business, employment levels peak in the holiday season.

We also engage independent contractors, most notably in our Shipt subsidiary.

Talent Development and Engagement

We offer a compelling work environment with meaningful experiences and abundant growth and career-development opportunities.

This starts with the opportunity to do challenging work and learn on the job and is supplemented by programs and continuous learning that help our team build skills at all levels, including programs focused on specialized skill development, leadership opportunities, coaching, and mentoring.

Our talent and succession planning process supports the development of a diverse talent pipeline for leadership and other critical roles.

We monitor our team members’ perceptions of these commitments through a number of surveys and take steps to address areas needing improvement.

TARGET CORPORATION

2020 Form 10-K 3

BUSINESS Table of Contents

Index to Financial Statements

Diversity and Inclusion

We champion workplace diversity and inclusion and focus on developing, advancing, and recruiting diverse talent.

We monitor the representation of women and racially or ethnically diverse team members at different levels throughout the company and disclose the composition of our team in our annual Workforce Diversity Report (which, beginning with our 2019 report, includes demographic information using the categories disclosed in our EEO-1 report).

Developing teams where team members feel heard, respected, and included is a core Target value and is also fundamental to creating an inclusive guest experience.

Compensation and Benefits

Our compensation and benefits are designed to support the financial, mental, and physical well-being of our team members and their families.

We believe in paying team members equitably, regardless of gender, race or ethnicity, and we regularly review the pay data of U.S.

team members to confirm that we are doing so.

Our compensation packages include a $15 per-hour minimum starting wage for US hourly team members (who comprise the vast majority of our team), a 401(k) plan with matching contributions up to five percent of eligible earnings, paid vacation and holidays, family leave, merchandise and other discounts, disability insurance, life insurance, healthcare and dependent care flexible spending accounts, tuition reimbursement, various team member assistance programs, an annual short-term incentive program, long-term equity awards, and health insurance benefits.

Eligibility for, and the level of, benefits vary depending on team members’ full-time or part-time status, work location, compensation level, and tenure.

Workplace Health and Safety

We strive to maintain a safe and secure work environment and have specific safety programs.

This includes administering a comprehensive occupational injury- and illness-prevention program and training for team members.

In 2020 we invested more than $1 billion in the well-being, health, and safety of our team members and guests.

We extended certain benefits to our team members in light of the COVID-19 pandemic, including bonuses, fully-paid leaves for up to 30 days, free back-up dependent care, and a variety of mental, emotional, and physical wellness resources.

We also enacted dozens of safety, social distancing, and cleaning measures designed to protect our team and guests during the COVID-19 pandemic.

Working Capital

8 unchanged sentences

Pay Less." brand promise, and our "Bullseye Design," have been registered with the United States (U.S.) Patent and Trademark Office.

We also seek to obtain and preserve intellectual property protection for our owned brands.

We also seek to obtain and preserve intellectual property protection for our brands.

TARGET CORPORATION

2020 Form 10-K 4

BUSINESS Table of Contents

BUSINESS & RISK FACTORS Table of Contents

Index to Financial Statements

3 unchanged sentences

Available Information

Our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge at investors.target.com as soon as reasonably practicable after we file such material with, or furnish it to, the U.S.

Our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge at investors.target.com as soon as reasonably practicable after we file such material with, or furnish it to, the U.S.

Securities and Exchange Commission (SEC).

In addition, the SEC maintains a website (http://www.sec.gov) that contains information we electronically file with, or furnish to, the SEC.

Our Corporate Governance Guidelines, Code of Ethics, Corporate Responsibility Report, and the charters for the committees of our Board of Directors are also available free of charge in print upon request or at investors.target.com.

Information on our website is not part of this or any other report we file with, or furnish to, the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business