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 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Federal	1,013)	556)	(84)	1,111)	1,013)	536)
State	236)	208)	33)	325)	281)	169)
International	101)	97)	107)	3)	68)	38)
Current	1,350)	861)	56)	1,439)	1,362)	743)
Federal	(184)	256)	501)	423)	(118)	150)
State	2)	43)	82)	98)	(64)	29)
International	2)	(1)	(1)	1)	(2)	(1)
Deferred	(180)	298)	582)	522)	(184)	178)
Provision for income taxes	1,170)	1,159)	638)	1,961)	1,178)	921)

Based on: 10-K (reporting date: 2025-02-01), 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).

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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 increased from 2023 to 2024 and from 2024 to 2025.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Target Corp. deferred decreased from 2023 to 2024 and from 2024 to 2025.
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 increased from 2023 to 2024 and from 2024 to 2025.

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

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
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	3.70%	3.80%	3.00%	3.90%	3.30%	3.70%
International	-1.10%	-1.30%	-2.10%	-1.30%	-1.20%	-1.40%
Excess tax benefit related to share-based payments	-0.10%	-0.30%	-1.60%	-0.80%	-1.00%	-0.40%
Federal tax credits	-0.80%	-0.80%	-1.50%	-0.50%	-0.60%	-0.80%
Other	-0.50%	-0.50%	-0.10%	-0.30%	-0.30%	-0.10%
Effective tax rate	22.20%	21.90%	18.70%	22.00%	21.20%	22.00%

Based on: 10-K (reporting date: 2025-02-01), 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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Target Corp. effective tax rate increased from 2023 to 2024 and from 2024 to 2025.

Target Corp., components of deferred tax assets and liabilities

US$ in millions

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Accrued and deferred compensation	423)	392)	365)	441)	623)	264)
Accruals and reserves not currently deductible	260)	256)	233)	211)	192)	169)
Self-insured benefits	207)	180)	156)	141)	138)	124)
Deferred occupancy income	109)	118)	125)	133)	141)	148)
Lease liabilities	1,600)	1,468)	1,316)	1,245)	1,108)	1,000)
Other	50)	92)	142)	18)	55)	58)
Gross deferred tax assets	2,649)	2,506)	2,337)	2,189)	2,257)	1,763)
Property and equipment	(2,830)	(3,015)	(2,613)	(2,265)	(2,003)	(1,767)
Leased assets	(1,425)	(1,276)	(1,115)	(1,089)	(996)	(880)
Inventory	(484)	(500)	(594)	(266)	(146)	(156)
Other	(203)	(187)	(205)	(130)	(82)	(74)
Gross deferred tax liabilities	(4,942)	(4,978)	(4,527)	(3,750)	(3,227)	(2,877)
Net deferred tax asset (liability)	(2,293)	(2,472)	(2,190)	(1,561)	(970)	(1,114)

Based on: 10-K (reporting date: 2025-02-01), 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).

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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 2023 to 2024 and from 2024 to 2025.
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 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.

Target Corp., deferred tax assets and liabilities, classification

US$ in millions

		Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
	Deferred tax assets (included in Other noncurrent assets)	10)	8)	6)	6)	20)	8)
	Deferred tax liabilities	2,303)	2,480)	2,196)	1,566)	990)	1,122)

Based on: 10-K (reporting date: 2025-02-01), 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).

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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.	Target Corp. deferred tax assets (included in Other noncurrent assets) increased from 2023 to 2024 and from 2024 to 2025.
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 2023 to 2024 but then slightly decreased from 2024 to 2025 not reaching 2023 level.

Target Corp., adjustments to financial statements

US$ in millions

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Adjustment to Total Assets
Total assets (as reported)	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Less: Noncurrent deferred tax assets, net	10)	8)	6)	6)	20)	8)
Total assets (adjusted)	57,759)	55,348)	53,329)	53,805)	51,228)	42,771)
Adjustment to Total Liabilities
Total liabilities (as reported)	43,103)	41,924)	42,103)	40,984)	36,808)	30,946)
Less: Noncurrent deferred tax liabilities, net	2,303)	2,480)	2,196)	1,566)	990)	1,122)
Total liabilities (adjusted)	40,800)	39,444)	39,907)	39,418)	35,818)	29,824)
Adjustment to Shareholders’ Investment
Shareholders’ investment (as reported)	14,666)	13,432)	11,232)	12,827)	14,440)	11,833)
Less: Net deferred tax assets (liabilities)	(2,293)	(2,472)	(2,190)	(1,561)	(970)	(1,114)
Shareholders’ investment (adjusted)	16,959)	15,904)	13,422)	14,388)	15,410)	12,947)
Adjustment to Net Earnings
Net earnings (as reported)	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Add: Deferred income tax expense (benefit)	(180)	298)	582)	522)	(184)	178)
Net earnings (adjusted)	3,911)	4,436)	3,362)	7,468)	4,184)	3,459)

Based on: 10-K (reporting date: 2025-02-01), 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).

Target Corp., Financial Data: Reported vs. Adjusted

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Target Corp., adjusted financial ratios

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net Profit Margin
Reported net profit margin	3.84%	3.85%	2.55%	6.55%	4.67%	4.20%
Adjusted net profit margin	3.67%	4.13%	3.08%	7.04%	4.47%	4.43%
Total Asset Turnover
Reported total asset turnover	1.84	1.94	2.05	1.97	1.83	1.83
Adjusted total asset turnover	1.85	1.94	2.05	1.97	1.83	1.83
Financial Leverage
Reported financial leverage	3.94	4.12	4.75	4.20	3.55	3.62
Adjusted financial leverage	3.41	3.48	3.97	3.74	3.32	3.30
Return on Equity (ROE)
Reported ROE	27.89%	30.81%	24.75%	54.15%	30.25%	27.73%
Adjusted ROE	23.06%	27.89%	25.05%	51.90%	27.15%	26.72%
Return on Assets (ROA)
Reported ROA	7.08%	7.48%	5.21%	12.91%	8.52%	7.67%
Adjusted ROA	6.77%	8.01%	6.30%	13.88%	8.17%	8.09%

Based on: 10-K (reporting date: 2025-02-01), 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).

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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
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 decreased from 2023 to 2024 and from 2024 to 2025.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Target Corp. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.

Target Corp., Financial Ratios: Reported vs. Adjusted

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	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Net sales	106,566)	107,412)	109,120)	106,005)	93,561)	78,112)
Profitability Ratio
Net profit margin¹	3.84%	3.85%	2.55%	6.55%	4.67%	4.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	3,911)	4,436)	3,362)	7,468)	4,184)	3,459)
Net sales	106,566)	107,412)	109,120)	106,005)	93,561)	78,112)
Profitability Ratio
Adjusted net profit margin²	3.67%	4.13%	3.08%	7.04%	4.47%	4.43%

Based on: 10-K (reporting date: 2025-02-01), 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).

2025 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 4,091 ÷ 106,566 = 3.84%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 3,911 ÷ 106,566 = 3.67%

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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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales	106,566)	107,412)	109,120)	106,005)	93,561)	78,112)
Total assets	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Activity Ratio
Total asset turnover¹	1.84	1.94	2.05	1.97	1.83	1.83
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	106,566)	107,412)	109,120)	106,005)	93,561)	78,112)
Adjusted total assets	57,759)	55,348)	53,329)	53,805)	51,228)	42,771)
Activity Ratio
Adjusted total asset turnover²	1.85	1.94	2.05	1.97	1.83	1.83

Based on: 10-K (reporting date: 2025-02-01), 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).

2025 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 106,566 ÷ 57,769 = 1.84

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 106,566 ÷ 57,759 = 1.85

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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 deteriorated from 2023 to 2024 and from 2024 to 2025.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Shareholders’ investment	14,666)	13,432)	11,232)	12,827)	14,440)	11,833)
Solvency Ratio
Financial leverage¹	3.94	4.12	4.75	4.20	3.55	3.62
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	57,759)	55,348)	53,329)	53,805)	51,228)	42,771)
Adjusted shareholders’ investment	16,959)	15,904)	13,422)	14,388)	15,410)	12,947)
Solvency Ratio
Adjusted financial leverage²	3.41	3.48	3.97	3.74	3.32	3.30

Based on: 10-K (reporting date: 2025-02-01), 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).

2025 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ investment
= 57,769 ÷ 14,666 = 3.94

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ investment
= 57,759 ÷ 16,959 = 3.41

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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 decreased from 2023 to 2024 and from 2024 to 2025.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Shareholders’ investment	14,666)	13,432)	11,232)	12,827)	14,440)	11,833)
Profitability Ratio
ROE¹	27.89%	30.81%	24.75%	54.15%	30.25%	27.73%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	3,911)	4,436)	3,362)	7,468)	4,184)	3,459)
Adjusted shareholders’ investment	16,959)	15,904)	13,422)	14,388)	15,410)	12,947)
Profitability Ratio
Adjusted ROE²	23.06%	27.89%	25.05%	51.90%	27.15%	26.72%

Based on: 10-K (reporting date: 2025-02-01), 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).

2025 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ investment
= 100 × 4,091 ÷ 14,666 = 27.89%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ investment
= 100 × 3,911 ÷ 16,959 = 23.06%

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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 improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Total assets	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Profitability Ratio
ROA¹	7.08%	7.48%	5.21%	12.91%	8.52%	7.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	3,911)	4,436)	3,362)	7,468)	4,184)	3,459)
Adjusted total assets	57,759)	55,348)	53,329)	53,805)	51,228)	42,771)
Profitability Ratio
Adjusted ROA²	6.77%	8.01%	6.30%	13.88%	8.17%	8.09%

Based on: 10-K (reporting date: 2025-02-01), 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).

2025 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,091 ÷ 57,769 = 7.08%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 3,911 ÷ 57,759 = 6.77%

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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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.

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)