Quantitative and Qualitative Disclosures About Market Risk
−Removed: As of January 30, 2021, our exposure to market risk was primarily from interest rate changes on our debt obligations, some of which are at a London Interbank Offered Rate (LIBOR).
+Added: As of January 29, 2022, our exposure to market risk was primarily from interest rate changes on our debt obligations and short-term investments, some of which are at a London Interbank Offered Rate (LIBOR).
Our interest rate exposure is primarily due to differences between our floating rate debt obligations compared to our floating rate short-term investments.
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In general, we expect our floating rate debt to exceed our floating rate short-term investments over time, but that may vary in different interest rate and economic environments.
−Removed: For example, our short-term investments as of January 30, 2021, exceeded our floating rate debt due to operating cash flow acceleration driven by strong operating results, as well as the temporary suspension of share repurchases and reduced capital expenditures in the uncertain environment.
+Added: For example, our short-term investments as of January 29, 2022, exceeded our floating rate debt due to operating cash flow acceleration driven by strong operating results.
See further description of our debt and derivative instruments in Notes 16 and 17 to the Financial Statements.
−Removed: The United Kingdom's Financial Conduct Authority has announced the intent to phase out LIBOR over the next several years.
+Added: The United Kingdom's Financial Conduct Authority has announced the intent to phase out LIBOR by June 2023.
We do not expect the phase out to materially impact our financial statements, liquidity, or access to capital markets.
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therefore, these liabilities fluctuate with changes in interest rates.
−Removed: Based on our balance sheet position as of January 30, 2021, the annualized effect of a 0.5 percentage point decrease in interest rates would be to decrease earnings before income taxes by $5 million.
+Added: Based on our balance sheet position as of January 29, 2022, the annualized effect of a 0.5 percentage point increase/(decrease) in interest rates would increase/(decrease) earnings before income taxes by $6 million.
In addition, we are exposed to market return fluctuations on our qualified defined benefit pension plan.
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To protect against declines in interest rates, we hold high-quality, long-duration bonds and derivative instruments in our pension plan trust.
−Removed: At year-end, we had hedged 65 percent of the interest rate exposure of our plan liabilities.
+Added: As of January 29, 2022, we had hedged 70 percent of the interest rate exposure of our plan liabilities.
+Added: TARGET CORPORATION
+Added: 2021 Form 10-K 32
+Added: MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES Index to Financial Statements
As more fully described in Note 23 to the Financial Statements, we are exposed to market returns on accumulated team member balances in our nonqualified, unfunded deferred compensation plans.
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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.