8-KOther EventsExhibits & Filings

TARGET CORP 8-K Report, Corporate Update (Apr 16, 2013)

Filed April 16, 2013For Securities:TGT

Summary

This Form 8-K filing by Target Corporation announces a significant change in its financial reporting structure, effective with the first quarter of fiscal 2013. The company will discontinue reporting a separate U.S. Credit Card Segment. Instead, income from its profit-sharing arrangement with TD Bank USA, N.A., will be recognized within the U.S. Segment as an offset to selling, general, and administrative (SG&A) expenses. This change necessitates a reclassification of historical credit card revenues and expenses to align with the new reporting format. This strategic shift aims to simplify the presentation of Target's financial performance by consolidating credit card-related income and expenses into its primary operating segments. Investors will now see a clearer view of the U.S. and Canadian retail operations, with credit card profitability integrated into the overall U.S. segment results. The filing includes historical data for fiscal years 2010, 2011, and 2012, restated to reflect this new segmentation, allowing for better comparability of past performance against future results.

Key Highlights

  • 1Target Corporation is eliminating its U.S. Credit Card Segment for financial reporting purposes, starting with the Q1 fiscal 2013 report.
  • 2Credit card profit-sharing income (net of expenses) with TD Bank USA, N.A., will now be reported within the U.S. Segment.
  • 3This income will be presented as an offset to Selling, General & Administrative (SG&A) expenses in the U.S. Segment.
  • 4Historical financial data for fiscal years 2010, 2011, and 2012 has been restated to reflect the new two-segment structure (U.S. and Canadian).
  • 5The change is intended to provide a more streamlined view of Target's operational performance.
  • 6The Chief Financial Officer, John J. Mulligan, signed the report, indicating executive acknowledgment of the reporting change.

Frequently Asked Questions

The primary change is Target Corporation's decision to discontinue reporting a separate U.S. Credit Card Segment. Instead, it will be integrated into the U.S. Segment, with associated income recognized as an offset to SG&A expenses.

Target's financial reporting will now consist of two main segments: U.S. and Canadian. Credit card profit-sharing income, net of expenses, will be part of the U.S. Segment's SG&A, offering a simplified view of the company's core retail operations.

The change is intended to simplify financial reporting and provide investors with a clearer, more comparable view of the company's performance by consolidating credit card-related financial activities into the broader U.S. operating segment.

Yes, the filing includes Exhibit (99) which provides restated historical financial information for fiscal years 2010, 2011, and 2012, reflecting the new U.S. and Canadian segment structure and the reclassification of credit card revenues.