Target Corporation Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Target Corporation on October 26, 2005. The report addresses a significant accounting policy change regarding the adoption of Statement of Financial Accounting Standards No. 123R (SFAS No. 123R), "Share-Based Payment."
Key Financial Metrics
The filing does not provide specific current-period revenue, profit, cash flow, or debt figures. Instead, it discloses the restatement of prior period financial statements to reflect compensation costs under the new fair-value-based method. The filing includes restated exhibits for fiscal 2003 and 2004 covering:
- Consolidated Results of Operations
- Consolidated Statements of Financial Position
- Credit Card Contribution from Continuing Operations
Material Changes
The primary material change is the transition from the intrinsic value method (APB Opinion No. 25) to the fair-value-based method for share-based compensation transactions. Consequently, all prior period financial statements have been restated to recognize compensation cost in amounts previously disclosed in the Notes to the Consolidated Financial Statements under SFAS No. 123.
Management Commentary and Risks
Management elected to adopt SFAS No. 123R under the modified retrospective transition method for the year ended January 29, 2005. The filing notes that this change eliminates the previous accounting treatment for stock issued to employees. No specific forward-looking guidance, risks, or unusual items beyond the accounting restatement are detailed in this text.
Investor Verification Checklist
- Verify the impact of the SFAS No. 123R adoption on reported net income and earnings per share for fiscal years 2003 and 2004 by reviewing the attached restated exhibits.
- Confirm the specific dollar amounts of compensation cost recognized in the restated financial statements compared to the original filings.
- Review the restated Consolidated Statements of Financial Position for changes in equity and liabilities related to share-based payments.
- Check subsequent filings for the full fiscal 2005 results to understand the ongoing impact of the new accounting standard.