What changed in this filing

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Item 1. Financial Statements

2024-11-27 compared with 2024-08-30 · 53 added, 43 removed, 301 unchanged (24% of the section changed)

1 unchanged sentence

Consolidated Statements of Operations

Three Months Ended Six Months Ended

(millions, except per share data) (unaudited) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Three Months Ended Nine Months Ended

(millions, except per share data) (unaudited) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Sales $ 25,228 $ 25,004 $ 74,392 $ 74,336

22 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Ended Six Months Ended

(millions) (unaudited) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Three Months Ended Nine Months Ended

(millions) (unaudited) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Net earnings $ 854 $ 971 $ 2,988 $ 2,756

10 unchanged sentences

Consolidated Statements of Financial Position

(millions, except footnotes) (unaudited) August 3,

2024 February 3,

2024 July 29,

(millions, except footnotes) (unaudited) November 2, 2024 February 3,

2024 October 28,

Cash and cash equivalents $ 3,433 $ 3,805 $ 1,910

31 unchanged sentences

Common Stock Authorized 6,000,000,000 shares, $ 0.0833 par value;

461,600,215 , 461,675,441 , and 461,600,640 shares issued and outstanding as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively.

459,244,995 , 461,675,441 , and 461,651,176 shares issued and outstanding as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively.

Preferred Stock Authorized 5,000,000 shares, $ 0.01 par value;

6 unchanged sentences

Consolidated Statements of Cash Flows

Six Months Ended

(millions) (unaudited) August 3, 2024 July 29, 2023

Nine Months Ended

(millions) (unaudited) November 2, 2024 October 28, 2023

Operating activities

4 unchanged sentences

Deferred income taxes ( 58 ) 252

Noncash losses / (gains) and other, net 22 11

Noncash (gains) / losses and other, net ( 1 ) 101

Changes in operating accounts:

10 unchanged sentences

Financing activities

Additions to long-term debt 741 —

Reductions of long-term debt ( 1,112 ) ( 114 )

59 unchanged sentences

August 3, 2024 461.6 $ 38 $ 6,831 $ 8,030 $ ( 470 ) $ 14,429

We declared $ 1.12 and $ 1.10 dividends per share for the three months ended August 3, 2024, and July 29, 2023, respectively, and $ 4.38 per share for the fiscal year ended February 3, 2024.

Net earnings — — — 854 — 854

Other comprehensive loss

— — — — ( 4 ) ( 4 )

Dividends declared — — — ( 521 ) — ( 521 )

Repurchase of stock ( 2.4 ) — — ( 354 ) — ( 354 )

Stock options and awards — — 85 — — 85

November 2, 2024 459.2 $ 38 $ 6,916 $ 8,009 $ ( 474 ) $ 14,489

We declared $ 1.12 and $ 1.10 dividends per share for the three months ended November 2, 2024, and October 28, 2023, respectively, and $ 4.38 per share for the fiscal year ended February 3, 2024.

See accompanying Notes to Consolidated Financial Statements .

35 unchanged sentences

We also earn revenues from a variety of other sources, most notably credit card profit-sharing income from our arrangement with TD Bank Group (TD).

Revenue Three Months Ended Six Months Ended

(millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Revenue Three Months Ended Nine Months Ended

(millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Apparel & accessories (a)

24 unchanged sentences

Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns.

As of August 3, 2024, February 3, 2024, and July 29, 2023, the accrual for estimated returns was $ 193 million, $ 170 million, and $ 177 million, respectively.

As of November 2, 2024, February 3, 2024, and October 28, 2023, the accrual for estimated returns was $ 204 million, $ 170 million, and $ 207 million, respectively.

Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance.

1 unchanged sentence

2024 Gift Cards Issued During Current Period But Not Redeemed (b)

Revenue Recognized From Beginning Liability August 3,

Revenue Recognized From Beginning Liability November 2,

Gift card liability (a)

8 unchanged sentences

Credit card profit sharing — We receive payments under a credit card program agreement with TD.

Under the agreement, we receive a percentage of the profits generated by the Target Circle Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions.

TD underwrites, funds, and owns Target Circle Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance.

Under the agreement, we receive a percentage of the profits generated by the Target Circle credit card receivables in exchange for performing account servicing and primary marketing functions.

TD underwrites, funds, and owns Target Circle credit card receivables, controls risk management policies, and oversees regulatory compliance.

Other — Includes advertising revenue, commissions earned on third-party sales through Target.com, Shipt membership and service revenues, rental income, and other miscellaneous revenues.

2 unchanged sentences

Financial Instruments Measured On a Recurring Basis Fair Value

(millions) Classification Measurement Level August 3, 2024 February 3, 2024 July 29, 2023

(millions) Classification Measurement Level November 2, 2024 February 3, 2024 October 28, 2023

Short-term investments Cash and Cash Equivalents Level 1 $ 2,456 $ 2,897 $ 1,004

Prepaid forward contracts Other Current Assets Level 1 26 25 18

Interest rate swaps Other Noncurrent Assets Level 2 3 — —

Interest rate swaps Other Current Liabilities Level 2 — 3 7

1 unchanged sentence

Significant Financial Instruments Not Measured at Fair Value (a)

August 3, 2024 February 3, 2024 July 29, 2023

November 2, 2024 February 3, 2024 October 28, 2023

Value Carrying

11 unchanged sentences

We review long-lived assets for impairment when store performance expectations, events, or changes in circumstances—such as a decision to relocate or close a store, office, or distribution center, discontinue a project, or make significant software changes—indicate that the asset’s carrying value may not be recoverable.

We recognized impairment charges of $ 36 million for the three and six months ended August 3, 2024, and $ 33 million for the three and six months ended July 29, 2023.

We recognized impairment charges of $ 1 million and $ 37 million for the three and nine months ended November 2, 2024, and $ 64 million and $ 98 million for the three and nine months ended October 28, 2023.

These impairment charges are included in Selling, General and Administrative (SG&A) Expenses.

5 unchanged sentences

The arrangements can be terminated by either party with notice ranging up to 120 days.

Our outstanding vendor obligations eligible for early payment under these arrangements totaled $ 3.7 billion, $ 3.4 billion, and $ 3.7 billion as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively, and are included within Accounts Payable on our Consolidated Statements of Financial Position.

Our outstanding vendor obligations eligible for early payment under these arrangements totaled $ 4.7 billion, $ 3.4 billion, and $ 4.5 billion as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively, and are included within Accounts Payable on our Consolidated Statements of Financial Position.

Our outstanding vendor obligations do not represent actual receivables sold by our vendors to the financial institutions, which have historically been lower.

Commercial Paper and Long-Term Debt

In July 2024, we repaid $ 1.0 billion of 3.5 percent unsecured fixed rate debt at maturity.

In September 2024, we issued $ 750 million of unsecured debt with a fixed rate of 4.5 percent that matures in September 2034.

We obtain short-term financing from time to time under our commercial paper program.

There was no commercial paper outstanding at any time during the six months ended August 3, 2024.

For the six months ended July 29, 2023, the maximum amount outstanding was $ 90 million, and the average daily amount outstanding was $ 2 million, at a weighted average annual interest rate of 4.9 percent.

No balances were outstanding as of July 29, 2023.

There was no commercial paper outstanding at any time during the three and nine months ended November 2, 2024, or during the three months ended October 28, 2023.

For the nine months ended October 28, 2023, the maximum amount outstanding was $ 90 million, and the average daily amount outstanding was $ 1 million, at a weighted average annual interest rate of 4.8 percent.

In October 2024, we obtained a new committed $ 1.0 billion 364-day unsecured revolving credit facility that will expire in October 2025 and terminated our prior 364-day facility.

No balances were outstanding under our credit facilities at any time during 2024 or 2023.

Derivative Financial Instruments

2 unchanged sentences

Note 3 to the Consolidated Financial Statements provides the fair value and classification of these instruments.

In July 2024, an interest rate swap with a notional amount of $ 250 million matured.

We were party to interest rate swaps with notional amounts totaling $ 2.20 billion as of August 3, 2024, and $ 2.45 billion as of both February 3, 2024, and July 29, 2023.

We were party to interest rate swaps with notional amounts totaling $ 2.20 billion as of November 2, 2024, and $ 2.45 billion as of both February 3, 2024, and October 28, 2023.

We pay a floating rate and receive a fixed rate under each of these agreements.

All of the agreements are designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during the three and six months ended August 3, 2024, and July 29, 2023.

Effect of Hedges on Debt

August 3, 2024 February 3, 2024 July 29, 2023

Long-term debt and other borrowings

Carrying amount of hedged debt $ 2,113 $ 2,316 $ 2,305

Cumulative hedging adjustments, included in carrying amount ( 79 ) ( 126 ) ( 136 )

All of the agreements are designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during the three and nine months ended November 2, 2024, and October 28, 2023.

TARGET CORPORATION

2 unchanged sentences

NOTES Index to Notes

Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended

(millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Effect of Hedges on Debt

November 2, 2024 February 3, 2024 October 28, 2023

Long-term debt and other borrowings

Carrying amount of hedged debt $ 2,088 $ 2,316 $ 2,245

Cumulative hedging adjustments, included in carrying amount ( 105 ) ( 126 ) ( 197 )

Effect of Hedges on Net Interest Expense Three Months Ended Nine Months Ended

(millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Gain (loss) on fair value hedges recognized in Net Interest Expense

4 unchanged sentences

Share Repurchase

We periodically repurchase shares of our common stock under a board-authorized repurchase program through a combination of open market transactions, accelerated share repurchase (ASR) arrangements, and other privately negotiated transactions with financial institutions.

Share Repurchase Activity Three Months Ended Six Months Ended

(millions, except per share data) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

We periodically repurchase shares of our common stock under a board-authorized repurchase program through a combination of open market transactions, accelerated share repurchase arrangements, and other privately negotiated transactions with financial institutions.

Share Repurchase Activity Three Months Ended Nine Months Ended

(millions, except per share data) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Number of shares purchased 2.4 — 3.5 —

3 unchanged sentences

We provide pension plan benefits to eligible team members.

Net Pension Benefits Expense Three Months Ended Six Months Ended

(millions) Classification August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Net Pension Benefits Expense Three Months Ended Nine Months Ended

(millions) Classification November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Service cost benefits earned SG&A Expenses $ 19 $ 19 $ 58 $ 58

4 unchanged sentences

Total $ ( 9 ) $ ( 6 ) $ ( 19 ) $ ( 6 )

TARGET CORPORATION

Q3 2024 Form 10-Q 12

FINANCIAL STATEMENTS Table of Contents

NOTES Index to Notes

Accumulated Other Comprehensive Income (Loss)

3 unchanged sentences

Amounts reclassified from AOCI, net of tax ( 13 ) — — ( 13 )

August 3, 2024 $ 274 $ ( 25 ) $ ( 719 ) $ ( 470 )

November 2, 2024 $ 270 $ ( 25 ) $ ( 719 ) $ ( 474 )

TARGET CORPORATION

3 unchanged sentences

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-Q

Item 1. Financial Statements