Target 2011 Annual Report Download - page 28

and/or length of service. These company-paid benefits include a pension plan, 401(k) plan, medical and dental
plans, a retiree medical plan, disability insurance, paid vacation, tuition reimbursement, various team member
assistance programs, life insurance and merchandise discounts.
Working Capital
Because of the seasonal nature of our business, our working capital needs are greater in the months leading
up to our peak sales period from Thanksgiving to the end of December. The increase in working capital during this
time is typically financed with cash flow provided by operations and short-term borrowings.
Additional details are provided in the Liquidity and Capital Resources section in Item 7, Management’s
Discussion and Analysis of Financial Condition and Results of Operations.
Competition
In our U.S. Retail Segment, we compete with traditional and off-price general merchandise retailers, apparel
retailers, internet retailers, wholesale clubs, category specific retailers, drug stores, supermarkets and other forms
of retail commerce in the U.S. Our ability to positively differentiate ourselves from other retailers largely determines
our competitive position within the U.S. retail industry. In our Canadian Segment, we will compete with similar retail
categories and will be focused on positively differentiating ourselves within the Canadian retail market.
In our U.S. Credit Card Segment, our primary mission is to deliver financial products and services that drive
sales and deepen guest relationships at Target. Our financial products compete with those of other issuers for
market share of sales volume. Our ability to positively differentiate the value of our financial products primarily
through our rewards programs, terms, credit line management, and guest service determines our competitive
position among credit card issuers.
Intellectual Property
Our brand image is a critical element of our business strategy. Our principal trademarks, including Target,
SuperTarget and our ‘‘Bullseye Design,’’ have been registered with the U.S. Patent and Trademark Office. We also
seek to obtain and preserve intellectual property protection for our private-label brands.
Geographic Information
All of our revenues are generated within the United States and a vast majority of our long-lived assets are
located within the U.S. as well. As we expand our operations internationally, a modest percentage of our revenues
and long-lived assets will be located in Canada.
Available Information
Our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available
free of charge at www.Target.com (click on ‘‘Investor Relations’’ and ‘‘SEC Filings’’) as soon as reasonably
practicable after we file such material with, or furnish it to, the Securities and Exchange Commission (SEC). Our
Corporate Governance Guidelines, Business Conduct Guide, Corporate Responsibility Report and the position
descriptions for our Board of Directors and Board committees are also available free of charge in print upon request
or at www.Target.com/Investors.
Item 1A. Risk Factors
Our business is subject to a variety of risks. The most important of these is our ability to remain relevant to our
guests with a brand they trust. Meeting our guests’ expectations requires us to manage various strategic,
operational, compliance, reputational, and financial risks. Set forth below are the most significant risks that we face.
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