TARGET CORPTGT

TARGET CORP Segments Disclosure

10-KFiled Mar 11, 20262 min read
Segment Reporting
Our Chief Operating Decision Maker (CODM)—our Chief Executive Officer—monitors our consolidated net earnings and operating income to evaluate performance and make operating decisions including whether to invest profits into capital projects, make equity or other investments, or return capital to shareholders. Consolidated assets as presented on our Consolidated Statements of Financial Position is the only view of assets regularly reviewed by our CODM. We operate as a single segment that includes all of our operations, which are designed to enable guests to purchase products seamlessly in stores or through our digital channels. Virtually all of our consolidated revenues are generated in the United States. The vast majority of our properties and equipment are located within the United States.

Business Segment Results   
(millions)
202520242023
Net sales
$104,780 $106,566 $107,412 
Cost of sales
Merchandising cost of sales (a)
67,980 68,884 70,652 
Supply chain and digital fulfillment costs (a)
7,531 7,618 7,176 
Total cost of sales75,511 76,502 77,828 
SG&A expenses (b)
21,535 21,969 21,462 
Depreciation and amortization (exclusive of depreciation included in cost of sales)
2,617 2,529 2,415 
Operating income
5,117 5,566 5,707 
Net interest expense445 411 502 
Net other income(95)(106)(92)
Earnings before income taxes4,767 5,261 5,297 
Provision for income taxes1,062 1,170 1,159 
Net earnings$3,705 $4,091 $4,138 
(a)Note 3 provides a description of Merchandising Cost of Sales and Supply Chain and Digital Fulfillment Costs.
(b)For 2025, includes $250 million related to business transformation costs described in Note 7 and $593 million of pretax net gains related to settlements of credit card interchange fee litigation matters described in Note 6.

Historical Timeline

Fiscal YearFiled
2026Mar 11, 2026Showing above
2025Mar 12, 2025
2018Mar 14, 2018
2017Mar 8, 2017
2016Mar 11, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance