Business Context and Reporting Period
This Form 10-K is the annual report for Dayton Hudson Corporation (parent of Target Corp) for the fiscal year ended January 31, 1998. The company, incorporated in Minnesota in 1902, operates primarily through its Target division and Mervyn's subsidiary. The filing incorporates by reference the 1997 Annual Report to Shareholders and the Proxy Statement dated April 14, 1998. As of March 20, 1998, the aggregate market value of voting stock held by non-affiliates was approximately $19.6 billion.
Key Financial Metrics
The specific numerical values for revenue, profit, cash flow, margins, debt, and liquidity are not contained within the text of this cover document. These figures are explicitly incorporated by reference from the 1997 Annual Report to Shareholders (Pages 25-35 and 37) and the Summary Financial and Operating Data (Page 37). Consequently, this filing text does not provide a clear value for these specific metrics.
- Stock Split: All references to Common Stock reflect a two-for-one split in April 1998.
- Shares Outstanding: 438,699,386 shares of common stock as of March 20, 1998.
- Stock Price: $42.53 per share (closing price on March 20, 1998).
- Securitization: The company utilizes a special purpose subsidiary, Dayton Hudson Receivables Corporation (DHRC), to transfer credit card receivables to a trust.
Material Changes and Operational Updates
While specific financial variances are not detailed in this text, the following operational and structural changes are noted:
- Leadership Changes: Bart Butzer became President of Mervyn's in March 1997. Gerald L. Storch was appointed President, Credit and Senior Vice President, Strategic Business Development in May 1997.
- Capital Structure: A two-for-one common stock split occurred in April 1998.
- Reporting: The company reported December 1997 sales results via a Form 8-K dated January 8, 1998.
Guidance, Risks, and Contingencies
Management's discussion on performance objectives, financial condition, and outlook is incorporated by reference from the 1997 Annual Report (Pages 17-24). Specific risks and contingencies, including legal proceedings and commitments, are detailed in the 1997 Annual Report (Page 29) and the Proxy Statement. The filing includes cautionary statements relating to forward-looking information (Exhibit 99C).
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in the 1997 Annual Report to Shareholders (incorporated by reference), as they are absent from this cover document.
- Review the Summary Financial and Operating Data on Page 37 of the Annual Report for year-over-year comparisons (1993-1997).
- Confirm the impact of the April 1998 two-for-one stock split on historical share counts and per-share metrics.
- Examine the Proxy Statement dated April 14, 1998 for details on executive compensation and director ownership.
- Check the separate 10-K filing for Dayton Hudson Receivables Corporation (DHRC) for details on the credit card securitization transaction.