- Section 1. Accounting Treatment
For this section, analyze and explain in detail the accounting treatment of the following areas for Target using the most recent annual report and disclosures.
- Fixed Assets
- Intangible Assets
- Liabilities (long term and short)
Consolidated Statements of Financial Position February 1, February 2, (millions, except footnotes) 2020 2019 Assets Cash and cash equivalents $ 2,577 $ 1,556 Inventory 8,992 9,497 Other current assets 1,333 1,466 Total current assets 12.902 12,519 Property and equipment Land 6.036 6,064 Buildings and improvements 30,603 29,240 Fixtures and equipment 6,083 5,912 Computer hardware and software 2,692 2,544 Construction-in-progress 533 460 Accumulated depreciation (19,664) (18,687) Property and equipment, net 26,283 25,533 Operating lease assets 2.236 1,965 Other noncurrent assets 1,358 1,273 Total assets $ 42.779 $ 41,290 Liabilities and shareholders' investment Accounts payable $ 9,920 $ 9,761 Accrued and other current liabilities 4,406 4,201 Current portion of long-term debt and other borrowings 161 1,052 Total current liabilities 14,487 15,014 Long-term debt and other borrowings 11,338 10,223 Noncurrent operating lease liabilities 2,275 2,004 Deferred income taxes 1,122 972 Other noncurrent liabilities 1,724 1,780 Total noncurrent liabilities 16,459 14,979 Shareholders' investment Common stock Additional paid-in capital 6,226 6,042 Retained earnings 6,433 6,017 Accumulated other comprehensive loss (868) (805) Total shareholders' investment 11,833 11,297 Total liabilities and shareholders' investment $ 42,779 $ 41,290 Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 504,198,962 shares issued and outstanding as of February 1, 2020; 517,761,600 shares issued and outstanding as of February 2, 2019. Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. 42 43 2019 2018 2017 3.281 $ 12 3.269 2.937 $ 7 2,930 2.914 6 2,908 2,604 147 178 10 29 2,474 132 322 2,476 112 (188) 123 208 95 505 18 140 199 7,099 18 7.117 (900) (299) 1,127 89 5,970 3 5,973 (348) (156) 1,307 419 6,861 74 6,935 Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Eamings from discontinued operations net of tax Net earnings from continuing operations Adjustments to reconcile net eamings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Loss on debt extinguishment Noncash losses / (gains) and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activitiescontinuing operations Cash provided by operating activities discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Cash paid for acquisitions, net of cash assumed Other investments Cash required for investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net (decrease) /increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes paid Leased assets obtained in exchange for new finance lease liabilities Leased assets obtained in exchange for new operating lease liabilities (3,027) 63 (3,516) 85 (2.533) 31 (518) (55) (3,075) 20 (2.944) 15 (3,416) 1,739 (2,069) (1.330) (1,565) 73 13.152) 1,021 1,556 2.577 $ (281) (1,335) (2,124) 96 (3,644) (1,087) 2,643 1,556 $ 739 (2,192) (1,338) (1,046) 108 (3.729) 131 2,512 2.643 $ 492 $ 696 678 934 476 $ 373 130 246 379 139 464 212 See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Financial Position February 1, February 2, (millions, except footnotes) 2020 2019 Assets Cash and cash equivalents $ 2,577 $ 1,556 Inventory 8,992 9,497 Other current assets 1,333 1,466 Total current assets 12.902 12,519 Property and equipment Land 6.036 6,064 Buildings and improvements 30,603 29,240 Fixtures and equipment 6,083 5,912 Computer hardware and software 2,692 2,544 Construction-in-progress 533 460 Accumulated depreciation (19,664) (18,687) Property and equipment, net 26,283 25,533 Operating lease assets 2.236 1,965 Other noncurrent assets 1,358 1,273 Total assets $ 42.779 $ 41,290 Liabilities and shareholders' investment Accounts payable $ 9,920 $ 9,761 Accrued and other current liabilities 4,406 4,201 Current portion of long-term debt and other borrowings 161 1,052 Total current liabilities 14,487 15,014 Long-term debt and other borrowings 11,338 10,223 Noncurrent operating lease liabilities 2,275 2,004 Deferred income taxes 1,122 972 Other noncurrent liabilities 1,724 1,780 Total noncurrent liabilities 16,459 14,979 Shareholders' investment Common stock Additional paid-in capital 6,226 6,042 Retained earnings 6,433 6,017 Accumulated other comprehensive loss (868) (805) Total shareholders' investment 11,833 11,297 Total liabilities and shareholders' investment $ 42,779 $ 41,290 Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 504,198,962 shares issued and outstanding as of February 1, 2020; 517,761,600 shares issued and outstanding as of February 2, 2019. Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. 42 43 2019 2018 2017 3.281 $ 12 3.269 2.937 $ 7 2,930 2.914 6 2,908 2,604 147 178 10 29 2,474 132 322 2,476 112 (188) 123 208 95 505 18 140 199 7,099 18 7.117 (900) (299) 1,127 89 5,970 3 5,973 (348) (156) 1,307 419 6,861 74 6,935 Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Eamings from discontinued operations net of tax Net earnings from continuing operations Adjustments to reconcile net eamings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Loss on debt extinguishment Noncash losses / (gains) and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activitiescontinuing operations Cash provided by operating activities discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Cash paid for acquisitions, net of cash assumed Other investments Cash required for investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net (decrease) /increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes paid Leased assets obtained in exchange for new finance lease liabilities Leased assets obtained in exchange for new operating lease liabilities (3,027) 63 (3,516) 85 (2.533) 31 (518) (55) (3,075) 20 (2.944) 15 (3,416) 1,739 (2,069) (1.330) (1,565) 73 13.152) 1,021 1,556 2.577 $ (281) (1,335) (2,124) 96 (3,644) (1,087) 2,643 1,556 $ 739 (2,192) (1,338) (1,046) 108 (3.729) 131 2,512 2.643 $ 492 $ 696 678 934 476 $ 373 130 246 379 139 464 212 See accompanying Notes to Consolidated Financial Statements
