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PART I
Item 1. Business
General
Target Corporation (Target, the Corporation or the Company) was incorporated in Minnesota in 1902. We offer our
customers, referred to as "guests," everyday essentials and fashionable, differentiated merchandise at discounted
prices. Our ability to deliver a preferred shopping experience to our guests is supported by our strong supply chain
and technology infrastructure, an ingrained devotion to innovation, and our disciplined approach to managing our
business and investing in future growth.
Prior to the first quarter of 2013, we operated a U.S. Credit Card Segment that offered credit to qualified guests through
our branded credit cards: the Target Credit Card and the Target Visa Credit Card. In the first quarter of 2013, we sold
our U.S. consumer credit card portfolio, and TD Bank Group (TD) now underwrites, funds and owns Target Credit Card
and Target Visa consumer receivables in the U.S. We perform account servicing and primary marketing functions and
earn a substantial portion of the profits generated by the portfolio. Refer to Note 7 of the Consolidated Financial
Statements included in Item 8, Financial Statements and Supplementary Data (the Financial Statements) for more
information on the credit card receivables transaction.
Prior to January 15, 2015, we operated a Canadian segment. On January 15, 2015, we announced our exit from the
Canadian market and Target Canada Co. and certain other wholly owned subsidiaries of Target filed for protection (the
Filing) in Canada under the Companies' Creditors Arrangement Act (CCAA) with the Ontario Superior Court of Justice
in Toronto. Following the Filing, we no longer consolidate our Canadian retail operation. Canadian financial results
prior to the Filing are included in our financial statements and classified within discontinued operations. See Item 7,
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) and Note 6 of the
Financial Statements for more information. Effective January 15, 2015, we operate as a single segment that includes
all of our continuing operations, which are designed to enable guests to purchase products seamlessly in stores, online
or through mobile devices.
Unless otherwise noted, discussion of our business and results of operations in this Annual Report on Form 10-K refers
to our continuing operations.
Financial Highlights
For information on key financial highlights and segment financial information, see the items referenced in Item 6,
Selected Financial Data, MD&A and Note 28 of the Financial Statements.
Seasonality
A larger share of annual revenues and earnings traditionally occurs in the fourth quarter because it includes the peak
sales period from Thanksgiving to the end of December.
Merchandise
We sell a wide assortment of general merchandise and food through our store and digital channels. Our general
merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items while
our SuperTarget stores offer a full line of food items comparable to traditional supermarkets. Our urban format stores,
CityTarget and TargetExpress, offer edited general merchandise and food assortments. Our digital channels include
a wide assortment of general merchandise, including many items found in our stores, along with a complementary
assortment such as additional sizes and colors sold only online.
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