TARGET CORPTGT

TARGET CORP Fair Value Disclosure

10-KFiled Mar 11, 20262 min read
Fair Value Measurements
Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data).

Financial Instruments Measured on a Recurring Basis
Fair Value as of
(millions)ClassificationMeasurement LevelJanuary 31, 2026February 1, 2025
Assets  
Short-term investments (a)
Cash and Cash EquivalentsLevel 1$4,611 $3,893 
Prepaid forward contracts (b)
Other Current AssetsLevel 118 23 
Liabilities  
Interest rate swaps (c)
Other Current LiabilitiesLevel 21 — 
Interest rate swaps (c)
Other Noncurrent LiabilitiesLevel 254 125 
(a)Carrying value approximates fair value because maturities are less than three months.
(b)Initially valued at transaction price. Subsequently valued by reference to the market price of Target common stock.
(c)Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). See Note 18 for additional information on interest rate swaps.

Significant Financial Instruments Not Measured at Fair Value (a)
As of January 31, 2026As of February 1, 2025
(millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Long-term debt, including current portion (b)
$14,398 $13,732 $13,904 $12,953 
(a)The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature.
(b)The fair value of long-term debt is estimated using Level 2 inputs based on quoted prices for the instruments. Where quoted prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest rates. These amounts exclude commercial paper, fair value hedge adjustments, and lease liabilities.

Historical Timeline

Fiscal YearFiled
2026Mar 11, 2026Showing above
2025Mar 12, 2025
2024Mar 13, 2024
2023Mar 8, 2023
2022Mar 9, 2022
2021Mar 10, 2021
2020Mar 11, 2020
2019Mar 13, 2019
2018Mar 14, 2018
2017Mar 8, 2017
2016Mar 11, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance