Target 10-Q 2021-10-30

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number 1-6049

TARGET CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation or organization)

1000 Nicollet Mall, Minneapolis, Minnesota

(Address of principal executive offices)

41-0215170

(I.R.S. Employer Identification No.)

55403

(Zip Code)

Registrant’s telephone number, including area code: 612/304-6073

Former name, former address and former fiscal year, if changed since last report: N/A

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer						☒			Accelerated filer									☐			Non-accelerated filer						☐
Smaller reporting company												☐			Emerging growth company									☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of registrant’s classes of common stock, as of the latest practicable date. Total shares of common stock, par value $0.0833, outstanding at November 19, 2021, were 479,123,918.

						Table of Contents
						Index to Notes

TARGET CORPORATION

TABLE OF CONTENTS

PART I			FINANCIAL INFORMATION
Item 1.			Financial Statements (unaudited)
			Consolidated Statements of Operations			1
			Consolidated Statements of Comprehensive Income			2
			Consolidated Statements of Financial Position			3
			Consolidated Statements of Cash Flows			4
			Consolidated Statements of Shareholders’ Investment			5
			Notes to Consolidated Financial Statements			7
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			13
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			23
Item 4.			Controls and Procedures			23
PART II			OTHER INFORMATION
Item 1.			Legal Proceedings			24
Item 1A.			Risk Factors			24
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			24
Item 3.			Defaults Upon Senior Securities			24
Item 4.			Mine Safety Disclosures			24
Item 5.			Other Information			24
Item 6.			Exhibits			25
Signature						26

			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

PART I. FINANCIAL INFORMATION

Consolidated Statements of Operations
			Three Months Ended												Nine Months Ended
(millions, except per share data) (unaudited)			October 30, 2021						October 31, 2020						October 30, 2021						October 31, 2020
Sales			$	25,290					$	22,336					$	73,995					$	64,403
Other revenue			362						296						1,014						819
Total revenue			25,652						22,632						75,009						65,222
Cost of sales			18,206						15,509						52,202						45,692
Selling, general and administrative expenses			4,859						4,647						14,217						13,167
Depreciation and amortization (exclusive of depreciation included in cost of sales)			577						541						1,739						1,660
Operating income			2,010						1,935						6,851						4,703
Net interest expense			105						632						317						871
Net other (income) / expense			(6)						5						(356)						16
Earnings before income taxes			1,911						1,298						6,890						3,816
Provision for income taxes			423						284						1,488						828
Net earnings			$	1,488					$	1,014					$	5,402					$	2,988
Basic earnings per share			$	3.07					$	2.02					$	10.97					$	5.97
Diluted earnings per share			$	3.04					$	2.01					$	10.87					$	5.91
Weighted average common shares outstanding
Basic			484.8						500.6						492.2						500.6
Diluted			489.4						505.4						496.8						505.2
Antidilutive shares			—						—						—						—

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION						Q3 2021 Form 10-Q			1

			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Comprehensive Income
			Three Months Ended												Nine Months Ended
(millions) (unaudited)			October 30, 2021						October 31, 2020						October 30, 2021						October 31, 2020
Net earnings			$	1,488					$	1,014					$	5,402					$	2,988
Other comprehensive income, net of tax
Pension benefit liabilities			21						22						63						66
Currency translation adjustment and cash flow hedges			5						14						6						5
Other comprehensive income			26						36						69						71
Comprehensive income			$	1,514					$	1,050					$	5,471					$	3,059

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION						Q3 2021 Form 10-Q			2

			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)			October 30, 2021						January 30, 2021						October 31, 2020
Assets
Cash and cash equivalents			$	5,753					$	8,511					$	5,996
Inventory			14,958						10,653						12,712
Other current assets			1,865						1,592						1,601
Total current assets			22,576						20,756						20,309
Property and equipment
Land			6,146						6,141						6,063
Buildings and improvements			32,478						31,557						31,398
Fixtures and equipment			6,144						5,914						5,843
Computer hardware and software			2,447						2,765						2,706
Construction-in-progress			1,302						780						518
Accumulated depreciation			(20,602)						(20,278)						(19,755)
Property and equipment, net			27,915						26,879						26,773
Operating lease assets			2,539						2,227						2,208
Other noncurrent assets			1,381						1,386						1,371
Total assets			$	54,411					$	51,248					$	50,661
Liabilities and shareholders’ investment
Accounts payable			$	16,250					$	12,859					$	14,203
Accrued and other current liabilities			5,925						6,122						5,023
Current portion of long-term debt and other borrowings			1,176						1,144						131
Total current liabilities			23,351						20,125						19,357
Long-term debt and other borrowings			11,586						11,536						12,490
Noncurrent operating lease liabilities			2,494						2,218						2,196
Deferred income taxes			1,246						990						1,171
Other noncurrent liabilities			1,931						1,939						2,128
Total noncurrent liabilities			17,257						16,683						17,985
Shareholders’ investment
Common stock			40						42						42
Additional paid-in capital			6,381						6,329						6,285
Retained earnings			8,069						8,825						7,789
Accumulated other comprehensive loss			(687)						(756)						(797)
Total shareholders’ investment			13,803						14,440						13,319
Total liabilities and shareholders’ investment			$	54,411					$	51,248					$	50,661

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 480,905,493, 500,877,129 and 500,754,729 shares issued and outstanding as of October 30, 2021, January 30, 2021, and October 31, 2020, respectively.

Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION						Q3 2021 Form 10-Q			3

			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Cash Flows
			Nine Months Ended
(millions) (unaudited)			October 30, 2021						October 31, 2020
Operating activities
Net earnings			$	5,402					$	2,988
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization			1,952						1,848
Share-based compensation expense			187						161
Deferred income taxes			233						26
Gain on Dermstore sale			(335)						—
Loss on extinguishment of debt			—						512
Noncash losses / (gains) and other, net			18						124
Changes in operating accounts:
Inventory			(4,305)						(3,720)
Other assets			(117)						(174)
Accounts payable			3,284						4,287
Accrued and other liabilities			(722)						992
Cash provided by operating activities			5,597						7,044
Investing activities
Expenditures for property and equipment			(2,483)						(2,009)
Proceeds from disposal of property and equipment			23						27
Proceeds from Dermstore sale			356						—
Other investments			14						(3)
Cash required for investing activities			(2,090)						(1,985)
Financing activities
Additions to long-term debt			—						2,480
Reductions of long-term debt			(112)						(2,395)
Dividends paid			(1,116)						(1,002)
Repurchase of stock			(5,042)						(741)
Stock option exercises			5						18
Cash required for financing activities			(6,265)						(1,640)
Net (decrease) / increase in cash and cash equivalents			(2,758)						3,419
Cash and cash equivalents at beginning of period			8,511						2,577
Cash and cash equivalents at end of period			$	5,753					$	5,996
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities			$	234					$	344
Leased assets obtained in exchange for new operating lease liabilities			482						186

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION						Q3 2021 Form 10-Q			4

			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Shareholders’ Investment
			Common						Stock						Additional												Accumulated Other
			Stock						Par						Paid-in						Retained						Comprehensive
(millions) (unaudited)			Shares						Value						Capital						Earnings						(Loss) / Income						Total
February 1, 2020			504.2						$	42					$	6,226					$	6,433					$	(868)					$	11,833
Net earnings			—						—						—						284						—						284
Other comprehensive income			—						—						—						—						14						14
Dividends declared			—						—						—						(333)						—						(333)
Repurchase of stock			(5.7)						—						—						(609)						—						(609)
Stock options and awards			1.4						—						(20)						—						—						(20)
May 2, 2020			499.9						$	42					$	6,206					$	5,775					$	(854)					$	11,169
Net earnings			—						—						—						1,690						—						1,690
Other comprehensive income			—						—						—						—						21						21
Dividends declared			—						—						—						(344)						—						(344)
Stock options and awards			0.4						—						42						—						—						42
August 1, 2020			500.3						$	42					$	6,248					$	7,121					$	(833)					$	12,578
Net earnings			—						—						—						1,014						—						1,014
Other comprehensive income			—						—						—						—						36						36
Dividends declared			—						—						—						(346)						—						(346)
Stock options and awards			0.5						—						37						—						—						37
October 31, 2020			500.8						$	42					$	6,285					$	7,789					$	(797)					$	13,319
Net earnings			—						—						—						1,380						—						1,380
Other comprehensive income			—						—						—						—						41						41
Dividends declared			—						—						—						(344)						—						(344)
Stock options and awards			0.1						—						44						—						—						44
January 30, 2021			500.9						$	42					$	6,329					$	8,825					$	(756)					$	14,440

TARGET CORPORATION						Q3 2021 Form 10-Q			5

			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Shareholders’ Investment
			Common						Stock						Additional												Accumulated Other
			Stock						Par						Paid-in						Retained						Comprehensive
(millions) (unaudited)			Shares						Value						Capital						Earnings						(Loss) / Income						Total
January 30, 2021			500.9						$	42					$	6,329					$	8,825					$	(756)					$	14,440
Net earnings			—						—						—						2,097						—						2,097
Other comprehensive income			—						—						—						—						31						31
Dividends declared			—						—						—						(343)						—						(343)
Repurchase of stock			(6.1)						(1)						—						(1,207)						—						(1,208)
Stock options and awards			1.3						—						(58)						—						—						(58)
May 1, 2021			496.1						$	41					$	6,271					$	9,372					$	(725)					$	14,959
Net earnings			—						—						—						1,817						—						1,817
Other comprehensive income			—						—						—						—						12						12
Dividends declared			—						—						—						(445)						—						(445)
Repurchase of stock			(6.6)						—						—						(1,544)						—						(1,544)
Stock options and awards			0.2						—						61						—						—						61
July 31, 2021			489.7						$	41					$	6,332					$	9,200					$	(713)					$	14,860
Net earnings			—						—						—						1,488						—						1,488
Other comprehensive income			—						—						—						—						26						26
Dividends declared			—						—						—						(439)						—						(439)
Repurchase of stock			(8.8)						(1)						—						(2,180)						—						(2,181)
Stock options and awards			—						—						49						—						—						49
October 30, 2021			480.9						$	40					$	6,381					$	8,069					$	(687)					$	13,803

We declared $0.90 and $0.68 dividends per share for the three months ended October 30, 2021, and October 31, 2020, respectively, and $2.70 per share for the fiscal year ended January 30, 2021.

See accompanying Notes to Consolidated Financial Statements.

TARGET CORPORATION						Q3 2021 Form 10-Q			6

			FINANCIAL STATEMENTS			Table of Contents
			INDEX			Index to Notes

INDEX TO NOTES
Notes to Consolidated Financial Statements									7
Note 1						Accounting Policies			8
Note 2						Coronavirus (COVID-19)			8
Note 3						Dermstore Sale			8
Note 4						Revenues			9
Note 5						Fair Value Measurements			10
Note 6						Property and Equipment			10
Note 7						Commercial Paper and Long-Term Debt			10
Note 8						Derivative Financial Instruments			10
Note 9						Share Repurchase			11
Note 10						Pension Benefits			11
Note 11						Accumulated Other Comprehensive Loss			12

TARGET CORPORATION						Q3 2021 Form 10-Q			7

			FINANCIAL STATEMENTS			Table of Contents
			NOTES			Index to Notes

Notes to Consolidated Financial Statements (unaudited)

1. Accounting Policies

These unaudited condensed consolidated financial statements are prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (U.S. GAAP) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statement disclosures in our 2020 Form 10-K.

We use the same accounting policies in preparing quarterly and annual financial statements.

We operate as a single segment that is designed to enable guests to purchase products seamlessly in stores or through our digital channels. Nearly all of our revenues are generated in the U.S. The vast majority of our long-lived assets are located within the U.S.

Due to the seasonal nature of our business, quarterly revenues, expenses, earnings, and cash flows are not necessarily indicative of the results that may be expected for the full year.

2. Coronavirus (COVID-19)

The novel coronavirus (COVID-19) pandemic continues to evolve. In 2020, states and cities took various measures in response to COVID-19, including mandating the closure of certain businesses and encouraging or requiring citizens to avoid large gatherings. To date, virtually all of our stores, digital channels, and distribution centers have remained open.

Since the onset of the COVID-19 pandemic, we have experienced strong comparable sales growth and significant volatility in our sales category and channel mix, including same-day fulfillment options. Note 4 presents sales by category. We have taken various actions, including accelerating purchases of certain merchandise in our core categories and, early in the pandemic, slowing or canceling purchase orders, primarily for Apparel and Accessories. As a result, during the quarter ended May 2, 2020, we recorded $216 million of purchase order cancellation fees in Cost of Sales.

3. Dermstore Sale

In February 2021, we sold our wholly owned subsidiary Dermstore LLC (Dermstore) for $356 million in cash and recognized a $335 million pretax gain, which is included in Net Other (Income) / Expense. Dermstore has historically represented less than 1 percent of our consolidated revenues, operating income, and net assets.

TARGET CORPORATION						Q3 2021 Form 10-Q			8

			FINANCIAL STATEMENTS			Table of Contents
			NOTES			Index to Notes

4. Revenues

General merchandise sales represent the vast majority of our revenues. 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).

Revenues			Three Months Ended												Nine Months Ended
(millions)			October 30, 2021						October 31, 2020						October 30, 2021						October 31, 2020
Apparel and accessories (a)			$	4,364					$	3,927					$	13,384					$	10,630
Beauty and household essentials (b)			6,980						6,103						20,070						18,172
Food and beverage (c)			5,074						4,397						14,617						13,158
Hardlines (d)			3,841						3,377						11,654						9,959
Home furnishings and décor (e)			4,989						4,506						14,147						12,395
Other			42						26						123						89
Sales			25,290						22,336						73,995						64,403
Credit card profit sharing			184						164						527						488
Other			178						132						487						331
Other revenue			362						296						1,014						819
Total revenue			$	25,652					$	22,632					$	75,009					$	65,222

*(a)*Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as jewelry, accessories, and shoes.

*(b)*Includes beauty and personal care, baby gear, cleaning, paper products, and pet supplies.

*(c)*Includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service in our stores.

*(d)*Includes electronics (including video game hardware and software), toys, entertainment, sporting goods, and luggage.

*(e)*Includes furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school and office supplies, greeting cards and party supplies, and other seasonal merchandise.

Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns. As of October 30, 2021, January 30, 2021, and October 31, 2020, the accrual for estimated returns was $210 million, $139 million, and $182 million, respectively.

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

Gift Card Liability Activity			January 30, 2021						Gift Cards Issued During Current Period But Not Redeemed (b)						Revenue Recognized From Beginning Liability						October 30, 2021
(millions)
Gift card liability (a)			$	1,035					$	502					$	(631)					$	906

*(a)*Included in Accrued and Other Current Liabilities.

*(b)*Net of estimated breakage.

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 Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance.

TARGET CORPORATION						Q3 2021 Form 10-Q			9

			FINANCIAL STATEMENTS			Table of Contents
			NOTES			Index to Notes

5. Fair Value Measurements

Fair value measurements are reported in one of three levels reflecting the valuation techniques used to determine fair value.

Financial Instruments Measured On a Recurring Basis									Fair Value
(millions)			Classification			Pricing Category			October 30, 2021						January 30, 2021						October 31, 2020
Assets
Short-term investments			Cash and Cash Equivalents			Level 1			$	4,818					$	7,644					$	5,089
Prepaid forward contracts			Other Current Assets			Level 1			44						38						32
Equity securities			Other Current Assets			Level 1			—						—						19
Interest rate swaps			Other Current Assets			Level 2			12						—						—
Interest rate swaps			Other Noncurrent Assets			Level 2			116						188						205
Liabilities
Interest rate swaps			Other Noncurrent Liabilities			Level 2			—						—						3

Significant Financial Instruments Not Measured at Fair Value (a) (millions)			October 30, 2021									January 30, 2021									October 31, 2020
Carrying Amount			Fair Value						Carrying Amount			Fair Value						Carrying Amount			Fair Value
Long-term debt, including current portion (b)			$	10,605		$	12,300					$	10,643		$	12,787					$	10,641		$	12,787

*(a)*The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature.

*(b)*The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities.

6. Property and Equipment

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 $3 million and $84 million during the three and nine months ended October 30, 2021, respectively. We recognized impairment charges of $2 million and $62 million during the three and nine months ended October 31, 2020, respectively. These impairment charges are included in Selling, General and Administrative Expenses (SG&A).

7. Commercial Paper and Long-Term Debt

In October 2021, we obtained a committed $3.0 billion unsecured revolving credit facility that will expire in October 2026. This new facility replaced our $2.5 billion unsecured revolving credit facility that was set to expire in October 2023. No balances were outstanding under either credit facility at any time during 2021 or 2020.

8. Derivative Financial Instruments

Our derivative instruments consist of interest rate swaps used to mitigate interest rate risk. As a result, we have counterparty credit exposure to large global financial institutions, which we monitor on an ongoing basis. Note 5 to the Consolidated Financial Statements provides the fair value and classification of these instruments.

As of October 30, 2021, January 30, 2021, and October 31, 2020, we were party to interest rate swaps with notional amounts totaling $1.5 billion. 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 nine months ended October 30, 2021, and October 31, 2020.

TARGET CORPORATION						Q3 2021 Form 10-Q			10

			FINANCIAL STATEMENTS			Table of Contents
			NOTES			Index to Notes

As of October 30, 2021, we were party to forward-starting interest rate swaps with notional amounts totaling $1.25 billion. As of January 30, 2021, and October 31, 2020, we were party to forward-starting interest rate swaps with notional amounts totaling $250 million. We use these derivative financial instruments, which have been designated as cash flow hedges, to hedge the interest rate exposure of anticipated future debt issuances during the next three years. As of October 30, 2021, Accumulated Other Comprehensive Loss (AOCI) included a gain of $15 million that will be reclassified and reduce Net Interest Expense as we record interest expense on the associated debt.

Effect of Hedges on Debt (millions)						October 30, 2021						January 30, 2021						October 31, 2020
Long-term debt and other borrowings
Carrying amount of hedged debt						$	1,609					$	1,677					$	1,696
Cumulative hedging adjustments, included in carrying amount						114						183						203

Effect of Hedges on Net Interest Expense			Three Months Ended												Nine Months Ended
(millions)			October 30, 2021						October 31, 2020						October 30, 2021						October 31, 2020
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swap designated as fair value hedges			$	(40)					$	(36)					$	(69)					$	66
Hedged debt			40						36						69						(66)
Total			$	—					$	—					$	—					$	—

9. 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 arrangements, and other privately negotiated transactions with financial institutions.

Share Repurchase Activity			Three Months Ended												Nine Months Ended
(millions, except per share data)			October 30, 2021						October 31, 2020						October 30, 2021						October 31, 2020
Number of shares purchased			8.8						—						21.5						5.7
Average price paid per share			$	246.80					$	—					$	226.93					$	107.58
Total investment			$	2,184					$	—					$	4,884					$	609

10. Pension Benefits

We provide pension plan benefits to eligible team members.

Net Pension Benefits Expense						Three Months Ended												Nine Months Ended
(millions)			Classification			October 30, 2021						October 31, 2020						October 30, 2021						October 31, 2020
Service cost benefits earned			SG&A			$	25					$	25					$	73					$	76
Interest cost on projected benefit obligation			Net Other (Income) / Expense			24						30						72						89
Expected return on assets			Net Other (Income) / Expense			(60)						(61)						(178)						(182)
Amortization of losses			Net Other (Income) / Expense			28						32						85						96
Amortization of prior service cost			Net Other (Income) / Expense			2						(3)						1						(9)
Settlement charges			Net Other (Income) / Expense			—						1						—						1
Total						$	19					$	24					$	53					$	71

TARGET CORPORATION						Q3 2021 Form 10-Q			11

			FINANCIAL STATEMENTS			Table of Contents
			NOTES			Index to Notes

11. Accumulated Other Comprehensive Loss

Change in Accumulated Other Comprehensive Loss			Cash Flow Hedges						Currency Translation Adjustment						Pension						Total
(millions)
January 30, 2021			$	(3)					$	(18)					$	(735)					$	(756)
Other comprehensive income (loss) before reclassifications, net of tax			7						(1)						—						6
Amounts reclassified from AOCI, net of tax			—						—						63						63
October 30, 2021			$	4					$	(19)					$	(672)					$	(687)

TARGET CORPORATION						Q3 2021 Form 10-Q			12

			MANAGEMENT'S DISCUSSION AND ANALYSIS			Table of Contents
			FINANCIAL SUMMARY			Index to Notes