Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Target Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Federal	556)	(84)	1,111)	1,013)	536)	257)
State	208)	33)	325)	281)	169)	116)
International	97)	107)	3)	68)	38)	51)
Current	861)	56)	1,439)	1,362)	743)	424)
Federal	256)	501)	423)	(118)	150)	263)
State	43)	82)	98)	(64)	29)	57)
International	(1)	(1)	1)	(2)	(1)	2)
Deferred	298)	582)	522)	(184)	178)	322)
Provision for income taxes	1,159)	638)	1,961)	1,178)	921)	746)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Target Corp. current decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Target Corp. deferred increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Target Corp. provision for income taxes decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Target Corp., effective income tax rate (EITR) reconciliation

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of the federal tax benefit	3.80%	3.00%	3.90%	3.30%	3.70%	3.60%
International	-1.30%	-2.10%	-1.30%	-1.20%	-1.40%	-1.30%
Excess tax benefit related to share-based payments	-0.30%	-1.60%	-0.80%	-1.00%	-0.40%	-0.30%
Federal tax credits	-0.80%	-1.50%	-0.50%	-0.60%	-0.80%	-1.10%
Other	-0.50%	-0.10%	-0.30%	-0.30%	-0.10%	-0.60%
Effective tax rate, before Tax Cuts and Jobs Act	21.90%	18.70%	22.00%	21.20%	22.00%	21.30%
Tax Cuts and Jobs Act	0.00%	0.00%	0.00%	0.00%	0.00%	-1.00%
Effective tax rate	21.90%	18.70%	22.00%	21.20%	22.00%	20.30%

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

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Item	Description	The company
Effective tax rate, before Tax Cuts and Jobs Act	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Target Corp. effective tax rate, before Tax Cuts and Jobs Act decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Target Corp., components of deferred tax assets and liabilities

US$ in millions

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Accrued and deferred compensation	392)	365)	441)	623)	264)	248)
Accruals and reserves not currently deductible	256)	233)	211)	192)	169)	181)
Self-insured benefits	180)	156)	141)	138)	124)	114)
Deferred occupancy income	118)	125)	133)	141)	148)	157)
Lease liabilities	1,468)	1,316)	1,245)	1,108)	1,000)	823)
Other	92)	142)	18)	55)	58)	40)
Gross deferred tax assets	2,506)	2,337)	2,189)	2,257)	1,763)	1,563)
Property and equipment	(3,015)	(2,613)	(2,265)	(2,003)	(1,767)	(1,557)
Leased assets	(1,276)	(1,115)	(1,089)	(996)	(880)	(731)
Inventory	(500)	(594)	(266)	(146)	(156)	(140)
Other	(187)	(205)	(130)	(82)	(74)	(95)
Gross deferred tax liabilities	(4,978)	(4,527)	(3,750)	(3,227)	(2,877)	(2,523)
Net deferred tax asset (liability)	(2,472)	(2,190)	(1,561)	(970)	(1,114)	(960)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

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Item	Description	The company
Gross deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Target Corp. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Target Corp. net deferred tax asset (liability) decreased from 2022 to 2023 and from 2023 to 2024.

Target Corp., deferred tax assets and liabilities, classification

US$ in millions

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
	Deferred tax assets (included in Other noncurrent assets)	8)	6)	6)	20)	8)	12)
	Deferred tax liabilities	2,480)	2,196)	1,566)	990)	1,122)	972)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

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Item	Description	The company
Deferred tax assets (included in Other noncurrent assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Target Corp. deferred tax liabilities increased from 2022 to 2023 and from 2023 to 2024.

Target Corp., adjustments to financial statements

US$ in millions

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Adjustment to Total Assets
Total assets (as reported)	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Less: Noncurrent deferred tax assets, net	8)	6)	6)	20)	8)	12)
Total assets (adjusted)	55,348)	53,329)	53,805)	51,228)	42,771)	41,278)
Adjustment to Total Liabilities
Total liabilities (as reported)	41,924)	42,103)	40,984)	36,808)	30,946)	29,993)
Less: Noncurrent deferred tax liabilities, net	2,480)	2,196)	1,566)	990)	1,122)	972)
Total liabilities (adjusted)	39,444)	39,907)	39,418)	35,818)	29,824)	29,021)
Adjustment to Shareholders’ Investment
Shareholders’ investment (as reported)	13,432)	11,232)	12,827)	14,440)	11,833)	11,297)
Less: Net deferred tax assets (liabilities)	(2,472)	(2,190)	(1,561)	(970)	(1,114)	(960)
Shareholders’ investment (adjusted)	15,904)	13,422)	14,388)	15,410)	12,947)	12,257)
Adjustment to Net Earnings
Net earnings (as reported)	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Add: Deferred income tax expense (benefit)	298)	582)	522)	(184)	178)	322)
Net earnings (adjusted)	4,436)	3,362)	7,468)	4,184)	3,459)	3,259)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

Target Corp., Financial Data: Reported vs. Adjusted

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Target Corp., adjusted financial ratios

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Net Profit Margin
Reported net profit margin	3.91%	2.58%	6.64%	4.73%	4.25%	3.95%
Adjusted net profit margin	4.19%	3.12%	7.14%	4.53%	4.48%	4.38%
Total Asset Turnover
Reported total asset turnover	1.91	2.02	1.94	1.80	1.80	1.80
Adjusted total asset turnover	1.91	2.02	1.94	1.80	1.80	1.80
Financial Leverage
Reported financial leverage	4.12	4.75	4.20	3.55	3.62	3.65
Adjusted financial leverage	3.48	3.97	3.74	3.32	3.30	3.37
Return on Equity (ROE)
Reported ROE	30.81%	24.75%	54.15%	30.25%	27.73%	26.00%
Adjusted ROE	27.89%	25.05%	51.90%	27.15%	26.72%	26.59%
Return on Assets (ROA)
Reported ROA	7.48%	5.21%	12.91%	8.52%	7.67%	7.11%
Adjusted ROA	8.01%	6.30%	13.88%	8.17%	8.09%	7.90%

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Target Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Target Corp. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Target Corp. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Target Corp., Financial Ratios: Reported vs. Adjusted

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	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Sales	105,803)	107,588)	104,611)	92,400)	77,130)	74,433)
Profitability Ratio
Net profit margin¹	3.91%	2.58%	6.64%	4.73%	4.25%	3.95%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	4,436)	3,362)	7,468)	4,184)	3,459)	3,259)
Sales	105,803)	107,588)	104,611)	92,400)	77,130)	74,433)
Profitability Ratio
Adjusted net profit margin²	4.19%	3.12%	7.14%	4.53%	4.48%	4.38%

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

2024 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 4,138 ÷ 105,803 = 3.91%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales
= 100 × 4,436 ÷ 105,803 = 4.19%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Target Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales	105,803)	107,588)	104,611)	92,400)	77,130)	74,433)
Total assets	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Activity Ratio
Total asset turnover¹	1.91	2.02	1.94	1.80	1.80	1.80
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales	105,803)	107,588)	104,611)	92,400)	77,130)	74,433)
Adjusted total assets	55,348)	53,329)	53,805)	51,228)	42,771)	41,278)
Activity Ratio
Adjusted total asset turnover²	1.91	2.02	1.94	1.80	1.80	1.80

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

2024 Calculations

¹ Total asset turnover = Sales ÷ Total assets
= 105,803 ÷ 55,356 = 1.91

² Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 105,803 ÷ 55,348 = 1.91

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Shareholders’ investment	13,432)	11,232)	12,827)	14,440)	11,833)	11,297)
Solvency Ratio
Financial leverage¹	4.12	4.75	4.20	3.55	3.62	3.65
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	55,348)	53,329)	53,805)	51,228)	42,771)	41,278)
Adjusted shareholders’ investment	15,904)	13,422)	14,388)	15,410)	12,947)	12,257)
Solvency Ratio
Adjusted financial leverage²	3.48	3.97	3.74	3.32	3.30	3.37

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ investment
= 55,356 ÷ 13,432 = 4.12

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ investment
= 55,348 ÷ 15,904 = 3.48

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Target Corp. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Shareholders’ investment	13,432)	11,232)	12,827)	14,440)	11,833)	11,297)
Profitability Ratio
ROE¹	30.81%	24.75%	54.15%	30.25%	27.73%	26.00%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	4,436)	3,362)	7,468)	4,184)	3,459)	3,259)
Adjusted shareholders’ investment	15,904)	13,422)	14,388)	15,410)	12,947)	12,257)
Profitability Ratio
Adjusted ROE²	27.89%	25.05%	51.90%	27.15%	26.72%	26.59%

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ investment
= 100 × 4,138 ÷ 13,432 = 30.81%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ investment
= 100 × 4,436 ÷ 15,904 = 27.89%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Total assets	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Profitability Ratio
ROA¹	7.48%	5.21%	12.91%	8.52%	7.67%	7.11%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	4,436)	3,362)	7,468)	4,184)	3,459)	3,259)
Adjusted total assets	55,348)	53,329)	53,805)	51,228)	42,771)	41,278)
Profitability Ratio
Adjusted ROA²	8.01%	6.30%	13.88%	8.17%	8.09%	7.90%

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,138 ÷ 55,356 = 7.48%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 4,436 ÷ 55,348 = 8.01%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Target Corp. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Target Corp. (NYSE:TGT)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Target Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Target Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)