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 Target Reports Second Quarter 2016 Earnings
   Wednesday, August 17, 2016 6:30:01 AM ET

--Second quarter GAAP EPS from continuing operations of $1.07 and Adjusted EPS of $1.23 were above the high end of guidance(1).

--The Company is on pace to exceed its goal to save $2 billion in costs over the 2-year period ending in 2016.

--Second quarter comparable sales decreased 1.1 percent, in line with guidance of flat to down 2 percent.

--Comparable sales growth in Signature Categories outpaced total comparable sales by approximately 3 percentage points; digital channel sales increased 16 percent.

--Target returned $1.7 billion to shareholders in the second quarter through dividends and share repurchases.

--For additional media materials, please visit: https://corporate.target.com/press/multimedia/2016/08/target-q2-2016-earnings

Target Corporation (TGT ) today reported a second quarter 2016 comparable sales decrease of 1.1 percent and GAAP earnings per share (EPS) from continuing operations of $1.07, a decrease of 11.6 percent from second quarter 2015. Second quarter adjusted earnings per share from continuing operations(2) (Adjusted EPS), which excludes $161 million of pre-tax early debt retirement losses, were $1.23, an increase of 0.5 percent from second quarter 2015. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

 
----------------------------------------------------------------------------------------------------------------------------------------------------
(1) On May 18, 2016, Target provided second quarter 2016
Adjusted EPS guidance of $1.00 to $1.20 and noted that second
quarter GAAP EPS from continuing operations would include
approximately $0.17 of expense related to early debt retirement
losses.
(2) Adjusted EPS, a non-GAAP financial measure, excludes
losses on the early retirement of debt, charges and other financial
impacts related to the sale of the pharmacy and clinic businesses to
CVS, and the impact of certain discretely managed items, such as
discontinued operations, data breach expenses, restructuring costs,
and certain other gains and expenses. See the "Discontinued
Operations" and "Miscellaneous" sections of this release, as well as
the tables of this release, for additional information about the
items that have been excluded from Adjusted EPS.
----------------------------------------------------------------------------------------------------------------------------------------------------
 

"While we recognize there are opportunities in the business, and are addressing the challenges we are facing in a difficult retail environment, we are pleased that our team delivered second quarter profitability above our expectations," said Brian Cornell, chairman and CEO of Target. "Looking ahead, we remain focused on our enterprise priorities as we continue to see the benefits of investing in Signature Categories, store experience, new flex-format stores and digital capabilities. Although we are planning for a challenging environment in the back half of the year, we believe we have the right strategy to restore traffic and sales growth over time."

Third Quarter and Fiscal 2016 Guidance While Target has plans in place to strengthen results over time, based on the current retail environment the Company believes it is prudent to lower its expectations for comparable sales in the second half of the year. In both the third and fourth quarters of 2016, Target now expects comparable sales growth in the range of (2.0) percent to flat.

In third quarter 2016, Target expects both GAAP EPS from continuing operations and Adjusted EPS of $0.75 to $0.95.

For full-year 2016, Target now expects GAAP EPS from continuing operations of $4.36 to $4.76, compared with prior guidance of $4.76 to $4.96. The Company expects full-year 2016 Adjusted EPS of $4.80 to $5.20, compared with prior guidance of $5.20 to $5.40. The 44-cent difference between the guidance ranges for GAAP EPS from continuing operations and Adjusted EPS primarily reflects early debt retirement losses already reported in 2016.

Third quarter and full-year 2016 GAAP EPS from continuing operations may include the impact of certain discrete items which will be excluded in calculating Adjusted EPS. The Company is not currently aware of any such discrete items beyond those already reported in the first and second quarters of 2016.

Segment Results Second quarter 2016 sales decreased 7.2 percent to $16.2 billion from $17.4 billion last year, reflecting a 1.1 percent decrease in comparable sales combined with the removal of pharmacy and clinic revenues from this year’s results. Comparable digital channel sales grew 16 percent and contributed 0.5 percentage points to comparable sales growth. Segment earnings before interest expense and income taxes (EBIT), which is Target’s measure of segment profit, were $1,241 million in second quarter 2016, a decrease of 8.1 percent from $1,350 million in 2015.

Second quarter EBITDA and EBIT margin rates were 11.2 percent and 7.7 percent, respectively, compared with 10.9 percent and 7.7 percent, respectively, in 2015. Second quarter gross margin rate was 31.3 percent, compared with 30.9 percent in 2015, reflecting the benefit of the sale of the Company’s pharmacy and clinic businesses and ongoing cost savings initiatives, partially offset by investments in promotions and increased digital shipping costs. Second quarter SG&A expense rate was 20.1 percent in 2016, compared with 19.9 percent in 2015, as the deleveraging impact of lower sales and investments in team offset benefits from the sale of the Company’s pharmacy and clinic businesses and continued expense discipline across the organization.

Interest Expense and Taxes from Continuing Operations The Company’s second quarter 2016 net interest expense was $307 million, compared with $148 million last year, driven by a $161 million charge related to the early retirement of debt. Second quarter 2016 effective income tax rate from continuing operations was 33.6 percent, compared with 34.6 percent last year. The decrease was primarily due to losses related to the early retirement of debt.

Capital Returned to Shareholders In second quarter 2016, the Company returned $1,680 million to shareholders, which consisted of:

-- Repurchasing 19.0 million shares of common stock at an average price of $70.91, for a total investment of $1,350 million.

-- Paying dividends of $330 million.

Since the beginning of the current $10 billion share repurchase program, the Company repurchased 125.0 million common shares at an average price of $70.57, for a total investment of approximately $8.8 billion.

For the trailing twelve months through second quarter 2016, after-tax return on invested capital (ROIC) was 15.8 percent, compared with 13.3 percent for the twelve months through second quarter 2015. Excluding the net gain on the sale of the pharmacy and clinic businesses, ROIC for the trailing twelve months through second quarter 2016 was 13.7 percent, reflecting higher profits on a modestly lower base of invested capital. See the "Reconciliation of Non-GAAP Financial Measures" section of this release for additional information about the Company’s ROIC calculation.

Discontinued Operations Second quarter net earnings from discontinued operations were $55 million, compared with after-tax losses of ($20) million last year. Second quarter 2016 net earnings from discontinued operations primarily reflect tax benefits from investment losses in Canada recognized upon court approval of Target Canada’s liquidation plan.

Conference Call Details Target will webcast its second quarter earnings conference call at 7:00 a.m. CDT today. Investors and the media are invited to listen to the call at Target.com/Investors (hover over "company" then click on "events & presentations" in the "investors" column). A telephone replay of the call will be available beginning at approximately 10:30 a.m. CDT today through the end of business on Aug. 19, 2016. The replay number is 855-859-2056 (passcode: 56082204).

Miscellaneous Statements in this release regarding third quarter, fourth quarter and full-year 2016 earnings per share and comparable sales guidance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company’s actual results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company’s Form 10-K for the fiscal year ended Jan. 30, 2016. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.

In addition to the GAAP results provided in this release, the Company provides Adjusted EPS for the three and six-month periods ended July 30, 2016, and Aug. 1, 2015. The Company also provides ROIC for the twelve-month periods ended July 30, 2016, and Aug. 1, 2015, respectively, which is a ratio based on GAAP information, with the exception of adjustments made to capitalize operating leases. Operating leases are capitalized as part of the ROIC calculation to control for differences in capital structure between the Company and its competitors. Adjusted EPS, capitalized operating lease obligations and operating lease interest are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Management believes Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company’s ongoing retail operations. Management believes ROIC is useful in assessing the effectiveness of its capital allocation over time. The most comparable GAAP measure for adjusted diluted EPS is diluted EPS from continuing operations. The most comparable GAAP measure for capitalized operating lease obligations and operating lease interest is total rent expense. Adjusted EPS, capitalized operating lease obligations and operating lease interest should not be considered in isolation or as a substitution for analysis of the Company’s results as reported under GAAP. Other companies may calculate Adjusted EPS and ROIC differently than the Company does, limiting the usefulness of the measure for comparisons with other companies.

About Target Minneapolis-based Target Corporation (TGT ) serves guests at 1,797 stores and at Target.com. Since 1946, Target has given 5 percent of its profit to communities, which today equals more than $4 million a week. For more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter.

TARGET CORPORATION

Consolidated Statements of Operations

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Three Months Ended                                                                                                                                                            Six Months Ended                                                         
                                                                                     -------------------------------------------------------------------------------------------------------------------------------                                                                                    -------------------------------------------------------------------------------------------------------------------------------
(millions, except per share data) (unaudited)                                         July 30,                                               August 1,                                            Change                                        July 30,                                               August 1,                                       Change
                                                                                                           2016                                                                      2015                                                                                                                                     2016                                                                      2015
--------------------------------------------------------------- -------------------- ----------------------------------------------   -------------------- ------------------------------------------------------   -------------------- ----------------------------------------  -------------------- ----------------------------------------------   -------------------- ------------------------------------------------------   -------------------- ------------------------------
Sales                                                                                          $          16,169                                  $                  17,427                                                           (7.2 )%                                                  $          32,364                                  $                  34,546                                                 (6.3 )%
Cost of sales                                                       11,102               12,051                     (7.9 )                        22,286               23,962           (7.0 )
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Gross margin                                                                                               5,067                                                                         5,376                                                           (5.7 )                                                              10,078                                                                        10,584                                                 (4.8 )
Selling, general and administrative expenses                                                               3,249                                                                         3,495                                                           (7.0 )                                                               6,402                                                                         7,009                                                 (8.7 )
Depreciation and amortization                                          570                  551                      3.6        1,116                1,090            2.4  
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Earnings from continuing operations before interest expense and                                            1,248                                                                         1,330                                                           (6.2 )                                                               2,560                                                                         2,485                                                  3.0
income taxes
Net interest expense                                                   307                  148                    106.4          722                  305          137.4  
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Earnings from continuing operations before income taxes                                                      941                                                                         1,182                                                          (20.4 )                                                               1,838                                                                         2,180                                                (15.7 )
Provision for income taxes                                             316                  409                    (22.8 )                           599                  756          (20.8 )
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Net earnings from continuing operations                                                                      625                                                                           773                                                          (19.1 )                                                               1,239                                                                         1,424                                                (13.0 )
Discontinued operations, net of tax                                     55                  (20 )                                                     73                  (36 )                       
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------
Net earnings                                                                $             680               $                     753                     (9.7 )%                               $           1,312               $                   1,388           (5.5 )%
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Basic earnings/(loss) per share
  Continuing operations                                                                        $            1.07                                                     $                    1.21                                                          (11.6 )%                                                  $            2.10                                                     $                    2.23                                                 (5.9 )%
  Discontinued operations                                             0.09                (0.03 )                                                   0.12                (0.06 )                       
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------
    Net earnings per share                                                  $            1.17               $                    1.18                     (1.4 )%                               $            2.22               $                    2.17            2.2 %
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Diluted earnings/(loss) per share
 Continuing operations                                                                         $            1.07                                                     $                    1.21                                                          (11.6 )%                                                  $            2.08                                                     $                    2.21                                                 (5.9 )%
 Discontinued operations                                              0.09                (0.03 )                                                   0.12                (0.06 )                       
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------
   Net earnings per share                                                   $            1.16               $                    1.18                     (1.4 )%                               $            2.20               $                    2.16            2.2 %
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Weighted average common shares outstanding
  Basic                                                                                                    582.2                                                                         635.8                                                           (8.4 )%                                                              590.3                                                                         638.3                                                 (7.5 )%
  Dilutive impact of share-based awards                                4.6                  5.2                5.0                  5.4      
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ------------------------------
  Diluted                                                            586.8                641.0                     (8.5 )%                        595.3                643.7           (7.5 )%
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Antidilutive shares                                                    0.2       --                                   0.1       --      
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------
Dividends declared per share                                                $            0.60               $                    0.56                      7.1 %                                $            1.16               $                    1.08            7.4 %
--------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Note: Per share amounts may not foot due to rounding.
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Subject to reclassification
 

TARGET CORPORATION

Consolidated Statements of Financial Position

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions)                                                                                        July 30,                                             January 30,                                            August 1,
                                                                                                                       2016                                                                     2016                                                                     2015
------------------------------------------------------------------------- -------------------- -------------------------------------------------   -------------------- -------------------------------------------------   -------------------- -------------------------------------------------
                                                                                                 (unaudited)                                                                                                 (unaudited)
Assets
Cash and cash equivalents, including short term investments of $303,                                     $              1,480                                                     $              4,046                                                     $              2,742
$3,008 and $1,985
Inventory (a)                                                                                                           8,631                                                                    8,601                                                                    8,261
Current assets of discontinued operations                                                                                  83                                                                      322                                                                      133
Other current assets (a)                                                          1,309           1,161           2,104  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Total current assets                                                                                                 11,503                                                                   14,130                                                                   13,240
Property and equipment
  Land                                                                                                                  6,111                                                                    6,125                                                                    6,120
  Buildings and improvements                                                                                           27,315                                                                   27,059                                                                   26,726
  Fixtures and equipment                                                                                                5,282                                                                    5,347                                                                    5,145
  Computer hardware and software                                                                                        2,504                                                                    2,617                                                                    2,550
  Construction-in-progress                                                                                                232                                                                      315                                                                      494
  Accumulated depreciation                                                      (16,510 )                          (16,246 )                          (15,452 )
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Property and equipment, net                                                                                          24,934                                                                   25,217                                                                   25,583
Noncurrent assets of discontinued operations                                                                               17                                                                       75                                                                      420
Other noncurrent assets                                                             834             840             950  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Total assets                                                                          $             37,288               $             40,262               $             40,193  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Liabilities and shareholders’ investment
Accounts payable                                                                                         $              6,811                                                     $              7,418                                                     $              6,944
Accrued and other current liabilities                                                                                   3,544                                                                    4,236                                                                    3,768
Current portion of long-term debt and other borrowings                                                                    647                                                                      815                                                                      841
Current liabilities of discontinued operations                                        1             153              60  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Total current liabilities                                                                                            11,003                                                                   12,622                                                                   11,613
Long-term debt and other borrowings                                                                                    12,063                                                                   11,945                                                                   11,817
Deferred income taxes                                                                                                     754                                                                      823                                                                    1,192
Noncurrent liabilities of discontinued operations                                                                          19                                                                       18                                                                      276
Other noncurrent liabilities                                                      1,872           1,897           1,353  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Total noncurrent liabilities                                                                                         14,708                                                                   14,683                                                                   14,638
Shareholders’ investment
  Common stock                                                                                                             48                                                                       50                                                                       53
  Additional paid-in capital                                                                                            5,562                                                                    5,348                                                                    5,271
  Retained earnings                                                                                                     6,579                                                                    8,188                                                                    9,099
  Accumulated other comprehensive loss
    Pension and other benefit liabilities                                                                                (576 )                                                                   (588 )                                                                   (444 )
    Currency translation adjustment and cash flow hedges                            (36 )                              (41 )                              (37 )
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
  Total shareholders’ investment                      11,577          12,957          13,942  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Total liabilities and shareholders’ investment             $             37,288               $             40,262               $             40,193  
------------------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Common Stock Authorized 6,000,000,000 shares, $.0833 par
value; 574,801,225, 602,226,517 and 630,446,029 shares issued and
outstanding at July 30, 2016, January 30, 2016 and August 1, 2015,
respectively.
 
Preferred Stock Authorized 5,000,000 shares, $.01 par
value; no shares were issued or outstanding at July 30, 2016,
January 30, 2016 or August 1, 2015.
 
(a) At August 1, 2015, $471 million of
pharmacy prescription inventory was included in other current
assets.
 
Subject to reclassification
 

TARGET CORPORATION

Consolidated Statements of Cash Flows

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        Six Months Ended
                                                                                                ---------------------------------------------------------------------------------------------------------------------------------------
(millions) (unaudited)                                                                               July 30,                                                   August 1,
                                                                                                                          2016                                                                          2015
-------------------------------------------------------------------------- -------------------- ------------------------------------------------------   -------------------- ------------------------------------------------------
Operating activities                                                                                                                                      
Net earnings                                                                                              $                   1,312                                                     $                   1,388
Earnings / (losses) from discontinued operations, net of tax                               73                  (36 )
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net earnings from continuing operations                                                                                       1,239                                                                         1,424
Adjustments to reconcile net earnings to cash provided by operations:
  Depreciation and amortization                                                                                               1,116                                                                         1,090
  Share-based compensation expense                                                                                               67                                                                            54
  Deferred income taxes                                                                                                         (79 )                                                                         (45 )
  Loss on debt extinguishment                                                                                                   422                                                                --
  Noncash (gains) / losses and other, net                                                                                       (14 )                                                                          26
  Changes in operating accounts
    Inventory                                                                                                                   (29 )                                                                          18
    Other assets                                                                                                                140                                                                           156
    Accounts payable and accrued liabilities                                           (1,466 )                                  (683 )
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash provided by operating activities--continuing operations                                                      1,396                                                                         2,040
Cash provided by operating activities--discontinued operations                 92                  823  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash provided by operations                                                             1,488                2,863  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Investing activities
  Expenditures for property and equipment                                                                                      (684 )                                                                        (710 )
  Proceeds from disposal of property and equipment                                                                               14                                                                            13
  Proceeds from sale of business                                                                                     --                                                                             8
  Other investments                                                                         1                   38  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash required for investing activities--continuing operations                                                      (669 )                                                                        (651 )
Cash provided by investing activities--discontinued operations     --                   19  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash required for investing activities                                                   (669 )                                  (632 )
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Financing activities
  Additions to long-term debt                                                                                                 1,979                                                                --
  Reductions of long-term debt                                                                                               (2,611 )                                                                         (54 )
  Dividends paid                                                                                                               (666 )                                                                        (665 )
  Repurchase of stock                                                                                                        (2,238 )                                                                      (1,251 )
  Stock option exercises                                                                  151                  271  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash required for financing activities                                                 (3,385 )                                (1,699 )
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net (decrease) / increase in cash and cash equivalents                                                                       (2,566 )                                                                         532
Cash and cash equivalents at beginning of period                                        4,046                2,210  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash and cash equivalents at end of period                                             $                   1,480               $                   2,742  
-------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                   
Subject to reclassification
                                                                                                                                                                                                                   

TARGET CORPORATION

Segment Results

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Three Months Ended                                                                                                                         Six Months Ended                                                     
                                                   --------------------------------------------------------------------------------------------------                                                                    -----------------------------------------------------------------------------------------------------------------------
(millions) (unaudited)                              July 30,                                         August 1,                                Change                                July 30,                                           August 1,                                Change
                                                                         2016                                           2015 (a)                                                                                                               2016                                                                2015 (a)
----------------------------- -------------------- ----------------------------------------------   ----------------------------------------------   -------------------- ------------------------  -------------------- ----------------------------------------------   -------------------- ----------------------------------------------   -------------------- ------------------------
Sales                                                        $          16,169                                $          17,427                                           (7.2 )%                                                  $          32,364                                  $          34,546                                           (6.3 )%
Cost of sales                     11,102     12,051     (7.9 )                        22,286       23,962     (7.0 )
----------------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ---- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---- --------------------
Gross margin                                                             5,067                                            5,376                                           (5.7 )                                                              10,078                                                                10,584                                           (4.8 )
SG&A expenses (b)                  3,256      3,475     (6.3 )                         6,398        6,883     (7.1 )
----------------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ---- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---- --------------------
EBITDA                                                                   1,811                                            1,901                                           (4.7 )                                                               3,680                                                                 3,701                                           (0.6 )
Depreciation and amortization        570        551      3.6        1,116        1,090      2.4  
----------------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ---- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---- --------------------
EBIT                                      $           1,241             $           1,350     (8.1 )%                               $           2,564               $           2,611     (1.8 )%
----------------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ---- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---- --------------------
Note: We operate as a single segment which includes all of our
continuing operations, excluding net interest expense and certain
other discretely managed items. Our segment operations are designed
to enable guests to purchase products seamlessly in stores, online,
or through mobile devices.
(a) Sales include $1,055 million and $2,128
million related to our former pharmacy and clinic businesses for
the three and six months ended August 1, 2015, respectively, and
cost of sales include and $840 million and $1,687 million,
respectively. The December 2015 sale of these businesses to CVS
had no notable impact on EBITDA or EBIT.
(b) SG&A includes $163 million and $321 million
of net profit-sharing income under our credit card program
agreement for the three and six months ended July 30, 2016,
respectively, and $159 million and $311 million for the three and
six months ended August 1, 2015, respectively.
                                                                                                                                                                                                                                                                                                                                                                           
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      Three Months Ended                                                                 Six Months Ended
                                                                             ---------------------------------------------------------------------------                     ------------------------------------------------------------------------------------
Segment Rate Analysis                                              July 30,                     August 1,                         July 30,                         August 1,
(unaudited)                                                                             2016                                            2015                                                 2016                                                2015
------------------------------------------------------- -------------------- -------------------------  -------------------- -------------------------  -------------------- ----------------------------------  -------------------- -------------------------
Gross margin rate                                                             31.3 %                       30.9 %                                                   31.1 %                       30.6 %
SG&A expense rate                                                             20.1                                            19.9                                                     19.8                                            19.9
EBITDA margin rate (a)                                                        11.2                                            10.9                                                     11.4                                            10.7
Depreciation and amortization expense rate                                     3.5                                             3.2                                                      3.4                                             3.2
EBIT margin rate (a)                                        7.7       7.7                7.9       7.6  
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Note: Rate analysis metrics are computed by dividing the applicable
amount by sales.
(a) Excluding sales of our former pharmacy and
clinic businesses, EBITDA margin rates were 11.6 percent and 11.4
percent for the three and six months ended August 1, 2015,
respectively, and EBIT margin rates were 8.2 percent and 8.1
percent, respectively.
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Three Months Ended                                                                                    Six Months Ended
                                                                             ---------------------------------------------------------------------------                     ------------------------------------------------------------------------------------
Sales by Channel                                                   July 30,                     August 1,                         July 30,                         August 1,
(unaudited)                                                                             2016                                          2015 (a)                                               2016                                              2015 (a)
------------------------------------------------------- -------------------- -------------------------  -------------------- -------------------------  -------------------- ----------------------------------  -------------------- -------------------------
Stores                                                                        96.7 %                                          97.3 %                                                   96.6 %                                          97.2 %
Digital                                                     3.3       2.7                3.4       2.8  
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Total                                                       100 %                        100 %                                 100 %                        100 %
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
(a) Excluding sales of our former
pharmacy and clinic businesses, stores and digital channels sales
were 97.1 percent and 2.9 percent of total sales, respectively,
for the three and six months ended August 1, 2015.
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Three Months Ended                                                                                    Six Months Ended
                                                                             ---------------------------------------------------------------------------                     ------------------------------------------------------------------------------------
Comparable Sales                                                   July 30,                     August 1,                         July 30,                         August 1,
(unaudited)                                                                             2016                                            2015                                                 2016                                                2015
------------------------------------------------------- -------------------- -------------------------  -------------------- -------------------------  -------------------- ----------------------------------  -------------------- -------------------------
Comparable sales change                                                       (1.1 )%                                          2.4 %                                         -- %                                           2.4 %
Drivers of change in comparable sales
  Number of transactions                                                      (2.2 )                                           1.6                                                     (0.9 )                                           1.3
  Average transaction amount                                                   1.1                                             0.8                                                      1.0                                             1.1
    Selling price per unit                                                     2.6                                             3.8                                                      2.8                                             4.5
    Units per transaction                                  (1.5 )                       (2.9 )                                (1.7 )                       (3.2 )
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Note: Amounts may not foot due to rounding.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Contribution to Comparable Sales Change                                                                  Three Months Ended                                                                                    Six Months Ended
(unaudited)
                                                                             ----------------------------------------------------------------------                          -------------------------------------------------------------------------------
                                                                 July 30,                     August 1,                         July 30,                         August 1,
                                                                   2016                                            2015                                                 2016                                                2015
                                                        -------------------------  -------------------- -------------------------  -------------------- ----------------------------------  -------------------- -------------------------
Stores channel comparable sales change                                        (1.6 )%                                          1.8 %                                                   (0.5 )%                                          1.7 %
Digital channel contribution to comparable sales change     0.5       0.6                0.6       0.7  
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Total comparable sales change                              (1.1 )%                       2.4 %                      -- %                        2.4 %
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Note: Amounts may not foot due to rounding.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Three Months Ended                                                                                    Six Months Ended
                                                                             ---------------------------------------------------------------------------                     ------------------------------------------------------------------------------------
REDcard Penetration                                                July 30,                     August 1,                         July 30,                         August 1,
(unaudited)                                                                             2016                                          2015 (a)                                               2016                                              2015 (a)
------------------------------------------------------- -------------------- -------------------------  -------------------- -------------------------  -------------------- ----------------------------------  -------------------- -------------------------
Target Debit Card                                                             12.7 %                                          12.0 %                                                   12.9 %                                          12.0 %
Target Credit Cards                                        11.1      10.1               10.7       9.8  
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Total REDcard Penetration                                  23.9 %                       22.1 %                                23.6 %                       21.8 %
------------------------------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- --------------------
Note: Amounts may not foot due to rounding.
(a) Excluding pharmacy and clinic sales, total
REDcard penetration was 23.2 percent and 22.9 percent for the
three and six months ended August 1, 2015, respectively.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Stores and Retail Square Feet                                                              Number of Stores                                                                                                             Retail Square Feet (a)
(unaudited)
                                                                                                                            -------------------------------------------------------------------------------------------------------------------                             -------------------------------------------------------------------------------------------------------------------------
                                                       July 30,                    January 30,                   August 1,                     July 30,                      January 30,                     August 1,
                                                                                                                  2016                                            2016                                            2015                                             2016                                              2016                                              2015
                                        -------------------- -------------------- -------------------- -------------------------  -------------------- -------------------------  -------------------- -------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------
170,000 or more sq. ft.                                                                                                       278                          278                          280                                            49,688                         49,688                         50,036
50,000 to 169,999 sq. ft.                                                                                                   1,505                                           1,505                                           1,514                                           189,732                                           189,677                                           190,608
49,999 or less sq. ft.                             14         9         5         300         174          92  
--------------------------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Total                                           1,797     1,792     1,799     239,720     239,539     240,736  
--------------------------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(a) In thousands: reflects total square feet, less
office, distribution center and vacant space.
 
Subject to reclassification
 

TARGET CORPORATION

Reconciliation of Non-GAAP Financial Measures

To provide additional transparency, we have disclosed non-GAAP adjusted diluted earnings per share from continuing operations (Adjusted EPS). This metric excludes certain items presented below. We believe this information is useful in providing period-to-period comparisons of the results of our continuing operations. This measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The most comparable GAAP measure is diluted earnings per share from continuing operations. Adjusted EPS should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Other companies may calculate Adjusted EPS differently than we do, limiting the usefulness of the measure for comparisons with other companies.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted EPS                                                                                                                                                                                                                                                       Three Months Ended                                                                                                                                                                                                    
                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                        July 30, 2016                                                                                                                                                                                     August 1, 2015
                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions, except per share data) (unaudited)                                                                      Pretax                                                     Net of                                                  Per Share                                Pretax               Net of                               Per Share                            Change
                                                                                                                                                                                                                       Tax                                                                       Amounts                                                                                                                 Tax                                                                       Amounts
-------------------------------------------------------------- -------------------- ------------------------------------------------------   -------------------- ------------------------------------------------------   -------------------- ------------------------------------------------------   -------------------- ----------------------------------  -------------------- -----------------------------------   -------------------- ------------------------------------------------------   -------------------- ------------------------------
GAAP diluted earnings per share from continuing operations                                                                                                                                                          $                    1.07                                                                                                                                   $                    1.21                                                (11.6 )%
Adjustments
 Loss on early retirement of debt                                                             $                     161                                                     $                      98                                                     $                    0.17                                                     $          --                                $          --                                  $          --
 Restructuring costs (a)                                                                                 --                                                                --                                                                --                                                                            11                                                        8                                                       0.01
 Other (b)                                                                                                           (7 )                                                                          (4 )                                                                       (0.01 )                                                                           9                                                        5                                                       0.01
 Resolution of income tax matters                                  --       --       --       --                 (5 )              (0.01 )                       
-------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- - -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------
Adjusted diluted earnings per share from continuing operations                                                                                             $                    1.23                                                       $                    1.22            0.5 %
-------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------------------------------------------------- ---------------------------------------------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                       Six Months Ended
                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                        July 30, 2016                                                                                                                                                                                                        August 1, 2015
                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions, except per share data) (unaudited)                                                                      Pretax                                                     Net of                                                  Per Share                                Pretax                                  Net of                                                  Per Share                            Change
                                                                                                                                                                                                                       Tax                                                                       Amounts                                                                                                                 Tax                                                                       Amounts
-------------------------------------------------------------- -------------------- ------------------------------------------------------   -------------------- ------------------------------------------------------   -------------------- ------------------------------------------------------   -------------------- ----------------------------------  -------------------- -----------------------------------   -------------------- ------------------------------------------------------   -------------------- ------------------------------
GAAP diluted earnings per share from continuing operations                                                                                                                                                                                                $                    2.08                                                                                                                                                                         $                    2.21                                                 (5.9 )%
Adjustments
 Loss on early retirement of debt                                                             $                     422                                                     $                     257                                                     $                    0.43                                                     $          --                                $          --                                  $          --
 Restructuring costs (a)                                                                                 --                                                                --                                                                --                                                                           114                                                       72                                                       0.11
 Other (b)                                                                                                            4                                                                             3                                                                --                                                                            12                                                        7                                                       0.01
 Resolution of income tax matters                                  --                   (3 )                        --       --                 (8 )              (0.01 )                       
-------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- - -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------
Adjusted diluted earnings per share from continuing operations                                                                                             $                    2.51                                                       $                    2.32            8.2 %
-------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------------------------------------------------- ---------------------------------------------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Note: Amounts may not foot due to rounding.
(a) Costs related to our corporate restructuring
announced during the first quarter of 2015.
(b) For the three and six months ended July 30,
2016, represents contract termination charges, severance and other
items related to the December 2015 sale of our former pharmacy and
clinic businesses to CVS. For the three and six months ended
August 1, 2015, represents costs related to the 2013 data breach.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

We have also disclosed after-tax return on invested capital from continuing operations (ROIC), which is a ratio based on GAAP information, with the exception of adjustments made to capitalize operating leases. Operating leases are capitalized as part of the ROIC calculation to control for differences in capital structure between us and our competitors. We believe this metric provides a meaningful measure of the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently than we do, limiting the usefulness of the measure for comparisons with other companies.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
After-Tax Return on Invested Capital                                                                                                                                                                                                          
                                                     
-------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------
Numerator                                                                                                                            Trailing Twelve Months
                                                                                          --------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions) (unaudited)                                                                 July 30,                                                         August 1,
                                                                                                                       2016                                                                                2015
-------------------------------------------------------------------- -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------
Earnings from continuing operations before interest expense and                                     $                         5,605                                  $                         4,974
income taxes
+ Operating lease interest (a)(b)                                                          77                         90  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted earnings from continuing operations before interest expense                                                          5,682                                                                               5,064
and income taxes
- Income tax effect (c)                                                                 1,791                      1,694  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net operating profit after taxes                                                 $                         3,891               $                         3,370      
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------
                                                                                                                                                                                                                                                                   
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Denominator                                                                                       July 30,                                                         August 1,                                         August 2,
(dollars in millions) (unaudited)                                                                                      2016                                                                                2015                                                                 2014
-------------------------------------------------------------------- -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------
Current portion of long-term debt and other borrowings                                              $                           647                                                     $                           841                                                     $                 294
+ Noncurrent portion of long-term debt                                                                                       12,063                                                                              11,817                                                                    12,551
+ Shareholders’ equity                                                                                                       11,577                                                                              13,942                                                                    16,433
+ Capitalized operating lease obligations (b)(d)                                                                              1,274                                                                               1,497                                                                     1,573
- Cash and cash equivalents                                                                                                   1,480                                                                               2,742                                                                       766
- Net assets of discontinued operations                                                    80                        217            4,653
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------
Invested capital                                                                 $                        24,001               $                        25,138               $              25,432
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------
Average invested capital (e)                                                     $                        24,569               $                        25,286    
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                     
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------
After-tax return on invested capital (f)                                                 15.8 %                                        13.3 %                       
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------
(a) Represents the add-back to operating income
driven by the hypothetical capitalization of our operating leases,
using eight times our trailing twelve months rent expense and an
estimated interest rate of six percent.
(b) See the following Reconciliation of
Capitalized Operating Leases table for the adjustments to our GAAP
total rent expense to obtain the hypothetical capitalization of
operating leases and related operating lease interest.
(c) Calculated using the effective tax rate for
continuing operations, which was 31.5% and 33.4% for the trailing
twelve months ended July 30, 2016 and August 1, 2015. For the
trailing twelve months ended July 30, 2016 and August 1, 2015,
includes tax effect of $1,767 million and $1,664 million,
respectively, related to EBIT and $24 million and $30 million,
respectively, related to operating lease interest.
(d) Calculated as eight times our trailing
twelve months rent expense.
(e) Average based on the invested capital at the
end of the current period and the invested capital at the end of
the comparable prior period.
(f) Excluding the net gain on the sale of our
pharmacy and clinic businesses, ROIC was 13.7 percent for the
trailing twelve months ended July 30, 2016.
 

Capitalized operating lease obligations and operating lease interest are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The most comparable GAAP measure is total rent expense. Capitalized operating lease obligations and operating lease interest should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP.

                                                    
------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Reconciliation of Capitalized Operating Leases                                                                                                          Trailing Twelve Months
                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions) (unaudited)                                                         July 30,                                          August 1,                                         August 2,
                                                                                                               2016                                                                 2015                                                                 2014
------------------------------------------------------------------- -------------------- ---------------------------------------------   -------------------- ---------------------------------------------   -------------------- ---------------------------------------------
Total rent expense                                                                                 $            159                                  $            187                                  $            197
Capitalized operating lease obligations (total rent expense x 8)                                              1,274                                                                1,497                                                                1,573
Operating lease interest (capitalized operating lease obligations x        77          90         n/a  
6%)
------------------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- ----- --------------------

Subject to reclassification

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160817005420r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160817005420/en/

SOURCE: Target Corporation

Target Corporation 
John Hulbert, Investors, 612-761-6627 
or 
Erin Conroy, Media, 612-761-5928 
or 
Target Media Hotline, 612-696-3400


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