SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 11-K

 


 

(Mark One)

 

ý

 

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

 

 

 

 

 

For the fiscal year ended December 31, 2007

 

 

 

 

 

OR

 

 

 

o

 

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

 

 

 

 

 

For the transition period from                      to                     

 

Commission File Number 1-6049

 

A.            Full title of the plan and address of the plan, if different from that of the issuer named below:  Target Corporation 401(k) Plan.

 

B.            Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

TARGET CORPORATION

 

1000 Nicollet Mall

Minneapolis, Minnesota 55403

 

 


 

 

AUDITED FINANCIAL STATEMENTS AND SCHEDULES

 

Target Corporation 401(k) Plan

Years Ended December 31, 2007 and 2006

With Report of Independent Registered Public Accounting Firm

 

 


 

Target Corporation 401(k) Plan

 

Audited Financial Statements and Schedules

 

Years Ended December 31, 2007 and 2006

 

 

Contents

 

Report of Independent Registered Public Accounting Firm

1

 

 

Audited Financial Statements

 

 

 

Statements of Net Assets Available for Benefits

2

Statements of Changes in Net Assets Available for Benefits

3

Notes to Financial Statements

4

 

 

Schedules

 

 

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

15

Schedule H, Line 4j – Schedule of Reportable Transactions

76

 

 

 


 

Report of Independent Registered Public Accounting Firm

 

The Board of Directors and Plan Participants
Target Corporation

 

We have audited the accompanying statements of net assets available for benefits of the Target Corporation 401(k) Plan (the Plan) as of December 31, 2007 and 2006, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2007 and 2006, and the changes in its net assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.

 

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets (held at end of year) as of December 31, 2007, and reportable transactions for the year then ended are presented for purposes of additional analysis and are not a required part of the financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole.

 

/s/ ERNST & YOUNG LLP

 

Minneapolis, Minnesota

June 16, 2008

 

1


 

Target Corporation 401(k) Plan

 

Statements of Net Assets Available for Benefits

(In Thousands)

 

 

 

December 31

 

 

 

2007

 

2006

 

Assets

 

 

 

 

 

Investments (at fair value)

 

$

4,707,724

 

$

4,859,089

 

Wrapper contracts (at fair value)

 

480

 

464

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Participant contributions

 

7,848

 

4,826

 

Employer contribution

 

8,005

 

3,120

 

Interest

 

323

 

2,858

 

Total receivables

 

16,176

 

10,804

 

Total assets

 

4,724,380

 

4,870,357

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Expenses payable

 

1,904

 

2,574

 

Total liabilities

 

1,904

 

2,574

 

 

 

 

 

 

 

Net assets reflecting all investments at fair value

 

4,722,476

 

4,867,783

 

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

 

(5,745

)

752

 

Net assets available for benefits

 

$

4,716,731

 

$

4,868,535

 

 

 

See accompanying notes.

 

2


 

Target Corporation 401(k) Plan

 

Statements of Changes in Net Assets Available for Benefits

(In Thousands)

 

 

 

Year Ended December 31

 

 

 

2007

 

2006

 

Additions to net assets attributed to:

 

 

 

 

 

Participant contributions

 

$

277,935

 

$

216,676

 

Employer contributions

 

175,490

 

135,339

 

Investment income:

 

 

 

 

 

Interest and dividends

 

61,436

 

56,507

 

Net realized and unrealized (depreciation) appreciation in fair value of investments

 

(149,196

)

277,941

 

Total additions

 

365,665

 

686,463

 

 

 

 

 

 

 

Deductions from net assets attributed to:

 

 

 

 

 

Benefits paid to participants

 

505,222

 

488,042

 

Trustee fees

 

994

 

1,206

 

Administration fees

 

11,253

 

12,411

 

Total deductions

 

517,469

 

501,659

 

Net (decrease) increase

 

(151,804

)

184,804

 

 

 

 

 

 

 

Net assets available for benefits:

 

 

 

 

 

Beginning of year

 

4,868,535

 

4,683,731

 

End of year

 

$

4,716,731

 

$

4,868,535

 

 

 

See accompanying notes.

 

3


 

Target Corporation 401(k) Plan


Notes to Financial Statements


December 31, 2007

 

1. Description of the Plan

 

Employees of Target Corporation (the Company) who meet certain eligibility requirements of age and hours worked can participate in the Target Corporation 401(k) Plan (the Plan). Under the terms of the Plan, participants can invest up to 80% of their current gross cash compensation in the Plan, within Employee Retirement Income Security Act (ERISA) limits.

 

Before January 1, 2007, participants vested in the Company’s matching deposits over time, beginning with the day they became eligible to participate in the Plan, in accordance with the following schedule:

 

Years

 

Vested
Percentage

 

 

 

 

 

Upon Eligibility

 

    20%

 

1

 

40

 

2

 

70

 

3

 

100

 

 

Beginning January 1, 2007, participants immediately became vested in the Company’s matching deposits both historically and prospectively.

 

Participant contributions are fully vested at all times. Prior to January 1, 2007, participants who left the Plan forfeited unvested company contributions, which were then used to reduce future company contributions. Total forfeitures for the year ended December 31, 2006, were $4,763,000. In 2007, the trust received the final forfeiture amount of $407,000 from the prior year, which reduced employer contributions for the year. Consistent with the new vesting guidelines, there were no forfeitures for the year ended December 31, 2007.

 

Participants are allowed to make contributions to the Plan, in any combination of before-tax and/or after-tax contributions, except for highly compensated participants. Highly compensated participants, as defined by the Internal Revenue Code (the Code), can only make before-tax contributions to the Plan. Participants can contribute up to the annual contribution limits established by the Internal Revenue Service (IRS) ($15,500 starting January 1, 2007, plus a $5,000 catch-up for participants age 50 and older).

 

4


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

1.   Description of the Plan (continued)

 

Participants may receive benefits upon termination, death, disability, or retirement as either a lump-sum amount equal to the vested value of their account or installments, subject to certain restrictions. Participants may also withdraw some or all of their account balances prior to termination, subject to certain restrictions.

 

Expenses paid by the Plan include the following: fund management fees (which are netted against investment interest income), trustee fees, monthly processing costs (including record-keeping fees), quarterly participant account statement preparation and distribution, and other third-party administrative expenses.

 

The Plan allows for two types of loans, one for the purchase of a primary residence and the other a general-purpose loan, both subject to certain restrictions as defined in the Plan. Participants may have one of each type of loan outstanding at any given time. Repayment of loans, including interest, is allocated to participants’ investment accounts in accordance with each participant’s investment election in effect at the time of the repayment.

 

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of the ERISA.

 

For more detailed information regarding the Plan, participants may refer to the Summary Plan Description available from the Company.

 

2.   Accounting Policies

 

Accounting Method

 

All investments are carried at fair market value except for fully benefit-responsive investment contracts, which are adjusted from fair value to contract value. Contract value represents contributions made under the contract, plus interest at the contract rate, less funds used to pay plan benefits. Common stock is valued at the quoted market price on the last business day of the plan year. Collective investment fund values are based on the fair value of the underlying securities (as determined by quoted market prices) as of the last business day of the plan year. Participant loans are valued at the unpaid principal balance, which approximates fair value.

 

5


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

2. Accounting Policies (continued)

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ significantly from those estimates.

 

Fully Benefit-Responsive Investment Contracts

 

As described in Financial Accounting Standards Board (FASB) Staff Position (FSP) AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP), investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.

 

The Plan invests in two synthetic investment contracts (synthetic GICs). As required by the FSP, the statement of net assets available for benefits presents the fair value of the fully benefit-responsive investment contracts as well as the adjustment from fair value to contract value for fully benefit-responsive investment contracts. The underlying investments of the synthetic GICs are valued at quoted market values on the last business day of the Plan’s year-end. The fair value of the wrap contracts for the synthetic GICs provided by the insurance companies is the replacement cost, and it is based on the wrap contract fees. The contract value of the fully-benefit responsive investment contracts represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses.

 

Recent Accounting Pronouncement

 

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 establishes a framework for measuring fair value under U.S. generally accepted accounting principles (GAAP), clarifies the definition of fair value within that framework, and expands disclosures about the use of fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15,

 

6


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

2.   Accounting Policies (continued)

 

2007. The Company adopted SFAS 157 as of February 3, 2008, subsequent to the Plan’s financial statement date. Plan management is currently evaluating the effect that the provisions of SFAS 157 will have on the Plan’s financial statements.

 

3.   Investments

 

At December 31, 2007, the Plan allows participants to allocate their investments among 13 investment funds. Participants may change their investment elections for existing account balances for past and future contributions on a daily basis.

 

The Plan’s investments are held by State Street Bank, the trustee. The Plan’s investments, including investments bought and sold, as well as investments held during the year, appreciated or depreciated in fair value as follows:

 

 

 

Net Appreciation
(Depreciation)
in Fair Value
During Year

 

 

 

(In Thousands)

 

Year ended December 31, 2007:

 

 

 

Collective investment funds

 

$

107,351

 

Target Corporation common stock

 

(256,547

)

 

 

$

(149,196

)

 

 

 

 

Year ended December 31, 2006:

 

 

 

 

Collective investment funds

 

$

175,473

 

Target Corporation common stock

 

102,468

 

 

 

$

277,941

 

 

7


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

3.   Investments (continued)

 

The fair values of individual investments representing 5% or more of the Plan’s net assets are as follows:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

 

 

Target Corporation common stock*

 

$2,201,451

 

$2,794,425

 

 

 

 

 

 

 

State Street Bank & Trust Co. S&P 500 Flagship Fund Class A*

 

354,503

 

282,403

 

 

 

 

 

 

 

Russell 3000 Index Lending

 

257,302

 

213,015

 

 

 

 

 

 

 

AIG Financial Products Group Annuity Contract No. 130221

 

300,440

 

290,459

 

 

 

 

 

 

 

Pacific Mutual Life Insurance Co. Group Annuity Contract No. 26255

 

300,440

 

290,459

 

 

*Indicates issuer is a party in interest to the Plan.

 

4.   The Stable Value Fund

 

The Plan invests in fully benefit-responsive synthetic GICs with two separate insurance companies as part of offering the Stable Value Fund (the Fund) investment option to participants. Contributions to this fund are invested in a portfolio of high-quality short- and intermediate-term U.S. bonds, including U.S. government treasuries, corporate debt securities, and other high-credit-quality asset-backed securities. The GIC issuer is contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan. There are no reserves against contract value for credit risk of the contract issuer or otherwise.

 

The Fund has entered into two wrap contracts with insurance companies under which the insurance companies provide guarantees with respect to the availability of funds to make distributions from this investment option. These insurance contracts are carried at contract value in the participants’ accounts.

 

8


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

4. The Stable Value Fund (continued)

 

Participant accounts in the Fund are credited with interest at a fixed rate that is reset quarterly. The primary variables impacting the future crediting rates include (1) the current yield of the assets underlying the contract, (2) the duration of the assets underlying the contracts, and (3) the existing difference between the fair value of the securities and the contract value of the assets within the insurance contract. The crediting rate of security-backed contracts will track current market yields on a trailing basis. The rate reset allows the contract value to converge with the fair value of the underlying portfolio over time, assuming the portfolio continues to earn the current yield for a period of time equal to the current portfolio duration.

 

To the extent that the underlying portfolio has unrealized and/or realized losses, a positive adjustment is made when reconciling from fair value to contract value under contract value accounting. As a result, the future crediting rate may be lower over time than the current market rates. Similarly, if the underlying portfolio generates unrealized and/or realized gains, a negative adjustment is made when reconciling from fair value to contract value, and in the future, the crediting rate may be higher than the current market rates. The insurance contracts cannot credit an interest rate that is less than zero percent.

 

Certain events limit the ability of the Plan to transact at contract value with the insurance company. Such events are limited to premature termination of the contracts by the Plan or plan termination. The plan sponsor has not expressed any intention to take either of these actions.

 

As described in Note 2, because the synthetic GICs are fully benefit-responsive, contract value is the relevant measurement attribute for that portion of the net assets available for benefits attributable to the synthetic GICs. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. The average yields earned by the Fund at December 31, 2007 and 2006, are as follows:

 

Average yields for synthetic GICs

 

2007

 

2006

 

 

 

 

 

 

 

Based on actual earnings

 

5.21

%

5.42

%

Based on interest rate credited to participants

 

5.09

 

4.62

 

 

9


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

5. Nonparticipant-Directed Investments

 

The Company matches 100% of participants’ contributions up to 5% of each participant’s gross cash compensation. The Company’s contributions to the Plan are initially invested in the Target Corporation Common Stock Fund. As of January 1, 2007, all actively employed participants became fully vested in their employer match contributions. As a result, participants can immediately diversify the investment of employer match funds to other plan investment options. Prior to January 1, 2007, some of the investments of the Company’s stock could not be directed to other investment options because full vesting had not yet been achieved. At December 31, 2006, approximately $69 million in investments of the Company’s stock were deemed to be nonparticipant-directed investments. For the year ended December 31, 2006, employer contributions of nonparticipant-directed funds were $38 million. As of December 31, 2007, there were no nonparticipant-directed investments.

 

6. Transactions With Parties in Interest

 

During the plan year 2007 and 2006, the Plan engaged in the following exempt party-in-interest transactions related to the Company’s common stock:

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

 

 

Number of common shares purchased

 

7,254

 

2,444

 

Cost of common shares purchased

 

$

433,359

 

$

128,615

 

 

 

 

 

 

 

Number of common shares sold

 

11,935

 

6,432

 

Market value of common shares sold

 

$

753,077

 

$

349,323

 

Cost of common shares sold

 

$

323,235

 

$

160,034

 

 

 

 

 

 

 

Number of common shares distributed to plan participants

 

272

 

483

 

Market value of common shares distributed to plan participants

 

$

16,709

 

$

25,608

 

Cost of common shares distributed to plan participants

 

$

7,367

 

$

11,977

 

 

 

 

 

 

 

Dividends received (net of pass-through dividends)

 

$

22,912

 

$

21,650

 

 

During 2007 and 2006, the Plan received match-related dividends of $15,879,000 and $14,153,000, respectively, on the Company’s common stock.

 

10


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

7. Reconciliation of Financial Statements to Form 5500

 

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

 

 

Net assets available for benefits per the financial statements

 

$

4,716,731

 

$

4,868,535

 

Amounts allocated to withdrawing participants

 

(1,712

)

(2,105

)

Adjustment from contract value to fair value for fully benefit-responsive investment contracts

 

5,745

 

 

Participant contribution receivable

 

(7,847

)

 

Employer contribution receivable

 

(5,771

)

 

Net assets available for benefits per the Form 5500

 

$

4,707,146

 

$

4,866,430

 

 

The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

 

 

Benefits paid to participants per the financial statements

 

$

505,222

 

$

488,042

 

Amounts allocated to withdrawing participants at December 31, 2006

 

(2,105

)

(2,267

)

Amounts allocated to withdrawing participants at December 31, 2007

 

1,712

 

2,105

 

Benefits paid to participants per the Form 5500

 

$

504,829

 

$

487,880

 

 

11


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

7. Reconciliation of Financial Statements to Form 5500 (continued)

 

The following is a reconciliation of participant contributions available for benefits per the financial statements to the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

Participant contributions available for benefits per the financial statements

 

$

7,848

 

$

4,826

 

Participant contribution receivable

 

(7,847

)

 

Participant contributions available for benefits per the Form 5500

 

$

1

 

$

4,826

 

 

The following is a reconciliation of employer contributions available for benefits per the financial statements to the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

Employer contributions available for benefits per the financial statements

 

$

8,005

 

$

3,120

 

Employer contribution receivable

 

(5,771

)

 

Employer contributions available for benefits per the Form 5500

 

$

2,234

 

$

3,120

 

 

12


 

Target Corporation 401(k) Plan

 

Notes to Financial Statements (continued)

 

7. Reconciliation of Financial Statements to Form 5500 (continued)

 

The following is a reconciliation of additions to net assets attributed to participant contributions per the financial statements to the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

Additions to net assets attributed to participant contributions per the financial statements

 

$

277,935

 

$

216,676

 

Participant contribution receivable

 

(7,847

)

 

Additions to net assets attributed to participant contributions per the Form 5500

 

$

270,088

 

$

216,676

 

 

The following is a reconciliation of additions to net assets attributed to employer contributions per the financial statements to the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

Additions to net assets attributed to employer contributions per the financial statements

 

$

175,490

 

$

135,339

 

Employer contribution receivable

 

(5,771

)

 

Additions to net assets attributed to employer contributions per the Form 5500

 

$

169,719

 

$

135,339

 

 

13


 

Target Corporation 401(k) Plan


Notes to Financial Statements (continued)

 

7. Reconciliation of Financial Statements to Form 5500 (continued)

 

The following is a reconciliation of total additions to net assets per the financial statements to total income per the Form 5500:

 

 

 

December 31

 

 

 

2007

 

2006

 

 

 

(In Thousands)

 

 

 

 

 

 

 

Total additions to net assets per the financial statements

 

$

365,665

 

$

686,463

 

Adjustment from contract value to fair value for fully benefit-responsive investment contracts

 

5,745

 

 

Participant contribution receivable

 

(7,847

)

 

Employer contribution receivable

 

(5,771

)

 

Total income per the Form 5500

 

$

357,792

 

$

686,463

 

 

9. Income Tax Status

 

The Plan has received a determination letter from the IRS dated September 12, 2001, stating that the Plan is qualified under Section 401(a) of the Code, and therefore, the related trust is exempt from taxation. Subsequent to the issuance of this determination letter, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan administrator believes that the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan, as amended, is qualified and the related trust is tax-exempt.

 

9. Risks and Uncertainties

 

The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.

 

14


 

Schedules

 


 

 Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

December 31, 2007

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

 Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH EQUIVALENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,701,650

 

*State Street Bank & Trust Co.

 

 

 

$

33,701,650

 

$

33,701,650

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMINGLED INVESTMENT FUNDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

227,641

 

Barclays Global Investors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Real Estate Index Fund

 

 

 

50,040,056

 

46,766,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,667,337

 

Barclays Global Investors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BGI S&P 500 Growth

 

 

 

131,508,916

 

154,958,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,845,963

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond Market Index Fund

 

 

 

176,552,330

 

199,961,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,657,185

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily EAFE

 

 

 

51,661,220

 

52,766,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,385,233

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Russell 3000 Fund

 

 

 

213,178,588

 

257,302,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15


 

 

 Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMINGLED INVESTMENT FUNDS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,731,389

 

Galliard Capital Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Synthetic Fund

 

 

 

$

20,000,000

 

$

30,660,458

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,625,903

 

Galliard Capital Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stable Return Fund

 

 

 

73,424,913

 

69,692,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,072,422

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily Emerging Markets Index Fund

 

 

 

167,092,656

 

204,873,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,046,310

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury Inflation Protected

 

 

 

67,566,712

 

72,655,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,249,524

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flagship FD Series A

 

 

 

254,151,149

 

354,502,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,120,197

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EAFE Series T

 

 

 

176,298,507

 

215,519,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,212,490

 

*State Street Bank & Trust Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Russell 2000 Fund

 

 

 

100,957,285

 

131,511,131

 

 

 

 

 

 

TOTAL COMINGLED INVESTMENT FUNDS

 

1,482,432,332

 

1,791,171,716

 

 

 

 

 

16


 

Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contract at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNTHETIC GUARANTEED INVESTMENT CONTRACTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American International Life Group (AIG) Financial Products Group Annuity Contract No. 130221, 5.05%

 

Aa2/AA

 

$

 

$

 

$

240,160

 

$

(2,843,863

)

$

297,596,197

 

 

 

Pacific Mutual Life Insurance Co. Group Annuity Contract No. 26255, 5.05%

 

Aa3/AA

 

 

 

240,160

 

(2,901,776

)

297,538,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,392,945

 

*State Street Bank & Trust Co

 

 

 

10,392,945

 

10,392,945

 

 

 

 

39,852

 

IMC Home Equity Ln Tr

 

 

 

41,141

 

39,738

 

 

 

 

939,641

 

Cit Mtg Ln Tr

 

 

 

939,641

 

928,412

 

 

 

 

260,000

 

Cit Mtg Ln Tr

 

 

 

260,000

 

250,653

 

 

 

 

460,000

 

Cit Mtg Ln Tr

 

 

 

460,000

 

454,503

 

 

 

 

254,676

 

CWABS Inc

 

 

 

254,974

 

249,475

 

 

 

 

964,224

 

HSBC Home Equity Ln Tr

 

 

 

964,224

 

929,271

 

 

 

 

652,343

 

Impac Cmb Tr

 

 

 

652,343

 

622,830

 

 

 

 

900,499

 

Lehman XS Tr

 

 

 

900,499

 

845,557

 

 

 

 

234,888

 

Morgan Stanley Abs Cap I Inc T

 

 

 

235,255

 

214,592

 

 

 

 

383,753

 

Revolving Home Equity Ln Tr

 

 

 

383,753

 

368,963

 

 

 

 

5,000,000

 

SLM Student Ln Tr

 

 

 

4,998,647

 

4,958,000

 

 

 

 

465,098

 

Structured Asset Sec Corp

 

 

 

469,676

 

458,811

 

 

 

 

1,006,317

 

Structured Asset Secs Corp

 

 

 

1,005,688

 

942,636

 

 

 

 

 

17


 

Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNTHETIC GUARANTEED INVESTMENT CONTRACTS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,609,531

 

Wamu Mtg Pass Through Ctfs

 

 

 

$

14,415

 

$

5,974

 

$

 

$

 

$

 

889,923

 

Wells Fargo Mtg Bkd Secs

 

 

 

893,072

 

881,338

 

 

 

 

2,405,913

 

Wells Fargo Mtg

 

 

 

2,389,749

 

2,379,222

 

 

 

 

1,500,000

 

GMAC Coml Mtg Sec Inc

 

 

 

1,572,188

 

1,561,829

 

 

 

 

524,630

 

Mortgage Cap Fdg Inc

 

 

 

542,705

 

524,312

 

 

 

 

11,150

 

Federal Home Ln Mtg Pc Gtd

 

 

 

9,854

 

11,147

 

 

 

 

328,178

 

Federal Home Ln Mtg Pc Gtd

 

 

 

301,178

 

328,726

 

 

 

 

91,175

 

First Horizon

 

 

 

89,219

 

89,681

 

 

 

 

173,940

 

Adjustable Rate Mortgage Trust

 

 

 

170,787

 

171,586

 

 

 

 

2,000,000

 

Banc Amer Coml Mtg Inc

 

 

 

1,972,188

 

1,951,314

 

 

 

 

223,207

 

Bear Stearns Adjustable Rate

 

 

 

219,231

 

219,758

 

 

 

 

562,742

 

Bear Stearns ARM Tr

 

 

 

552,367

 

555,579

 

 

 

 

1,915,605

 

Bear Stearns Alt A Tr

 

 

 

1,919,945

 

1,900,892

 

 

 

 

674,765

 

Cwalt Inc

 

 

 

674,737

 

632,487

 

 

 

 

474,600

 

Cwalt Inc

 

 

 

475,193

 

462,734

 

 

 

 

443,375

 

Cwalt Inc

 

 

 

443,375

 

432,045

 

 

 

 

870,041

 

Cwalt Inc

 

 

 

870,041

 

842,948

 

 

 

 

632,717

 

Cwalt Inc

 

 

 

632,717

 

613,028

 

 

 

 

696,758

 

Cwalt Inc

 

 

 

696,747

 

672,898

 

 

 

 

 

18


 

Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNTHETIC GUARANTEED INVESTMENT CONTRACTS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

615,923

 

Cwalt Alt Ln Tr

 

 

 

$

615,923

 

$

582,859

 

$

 

$

 

$

 

297,460

 

CWMBS Inc

 

 

 

292,701

 

292,858

 

 

 

 

204,034

 

CWMBS Inc

 

 

 

199,363

 

200,365

 

 

 

 

832,872

 

CWMBS Inc

 

 

 

815,564

 

818,548

 

 

 

 

145,619

 

Credit Suisse First Boston Mtg

 

 

 

148,918

 

144,806

 

 

 

 

33,047

 

Credit Suisse First Boston Mtg

 

 

 

1,632

 

730

 

 

 

 

64,312

 

Credit Suisse First Boston Mtg

 

 

 

4,341

 

708

 

 

 

 

62,242

 

Credit Suisse First Boston Mtg

 

 

 

4,746

 

2,135

 

 

 

 

644,571

 

Credit Suisse First Boston

 

 

 

90,441

 

80,572

 

 

 

 

1,000,000

 

Credit Suisse Coml Mtg Tr

 

 

 

1,005,000

 

987,619

 

 

 

 

831,902

 

Dsla Mtg Ln Tr

 

 

 

831,902

 

810,348

 

 

 

 

902,134

 

GMACM Mtg Ln Tr

 

 

 

881,475

 

886,368

 

 

 

 

2,000,000

 

Ge Coml Mtg Corp

 

 

 

2,007,422

 

1,991,488

 

 

 

 

53,653

 

Government Natl Mtg Assn

 

 

 

61,228

 

63,112

 

 

 

 

64,063

 

Government Natl Mtg Assn

 

 

 

74,011

 

78,638

 

 

 

 

80,393

 

Government Natl Mtg Assn

 

 

 

91,552

 

94,545

 

 

 

 

15,991

 

Government Natl Mtg

 

 

 

17,689

 

18,714

 

 

 

 

739,115

 

Harborview Mtg Ln Tr

 

 

 

711,398

 

725,434

 

 

 

 

1,233,808

 

Harborview Mtg Ln Tr

 

 

 

1,233,808

 

1,170,209

 

 

 

 

831,323

 

IMPAC Secd Assets Corp

 

 

 

831,323

 

770,595

 

 

 

 

548,955

 

Indymac MBS Inc

 

 

 

538,212

 

544,681

 

 

 

 

 

19


 

Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNTHETIC GUARANTEED INVESTMENT CONTRACTS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

683,758

 

Indymac MBS Inc

 

 

 

$

648,288

 

$

670,662

 

$

 

$

 

$

 

664,442

 

JP Morgan Mtg Tr

 

 

 

651,361

 

656,391

 

 

 

 

2,000,000

 

J P Morgan Chase Coml Mtg

 

 

 

1,990,859

 

1,995,705

 

 

 

 

929,860

 

J P Morgan Mtg Tr

 

 

 

912,134

 

909,989

 

 

 

 

877,557

 

JP Morgan Mtg Tr

 

 

 

868,747

 

863,291

 

 

 

 

1,111,381

 

Lehman Xs Tr

 

 

 

1,111,381

 

1,030,116

 

 

 

 

1,268,665

 

Lehman Xs Tr

 

 

 

1,268,665

 

1,179,929

 

 

 

 

698,428

 

Luminent Mtg Tr

 

 

 

687,297

 

659,360

 

 

 

 

835,764

 

Mastr Adj Rate Mtg Tr

 

 

 

835,372

 

813,300

 

 

 

 

1,671,527

 

Mastr Adj Rate Mtgs Tr

 

 

 

1,664,345

 

1,670,357

 

 

 

 

139,247

 

Mastr Adj Rate Mtgs Tr

 

 

 

140,988

 

136,949

 

 

 

 

793,296

 

Residential Fdg Mtg Secs I Inc

 

 

 

765,530

 

780,170

 

 

 

 

592,287

 

Residentail Accredit Lns Inc

 

 

 

585,994

 

565,602

 

 

 

 

105,669

 

Structured Adj Rate Mtg Ln Tr

 

 

 

104,282

 

104,579

 

 

 

 

467,581

 

Structured Adj Rate Mtg Ln Tr

 

 

 

462,229

 

463,689

 

 

 

 

273,741

 

Structured Asset Secs Corp

 

 

 

267,689

 

268,784

 

 

 

 

858,167

 

Structured Asset Mtg Invts II

 

 

 

858,167

 

858,163

 

 

 

 

606,013

 

Structured Asset Mtg Invts II

 

 

 

606,013

 

572,867

 

 

 

 

1,499,824

 

Structured Asset Mtg Invts

 

 

 

1,499,356

 

1,431,579

 

 

 

 

2,000,000

 

Structured Asset Mtg Invys II

 

 

 

1,995,000

 

1,948,501

 

 

 

 

341,793

 

Wamu Mtg Pass Through Ctfs

 

 

 

333,596

 

334,895

 

 

 

 

 

20


 

Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNTHETIC GUARANTEED INVESTMENT CONTRACTS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,000,000

 

Wamu Mtg Pass Through Ctfs

 

 

 

$

979,961

 

$

978,812

 

$

 

$

 

$

 

658,118

 

Wamu Mtg

 

 

 

658,118

 

629,453

 

 

 

 

606,757

 

Wamu Mtg

 

 

 

9,670

 

1,797

 

 

 

 

744,697

 

Wamu Mtg Pass Through Ctfs

 

 

 

744,697

 

721,209

 

 

 

 

2,000,000

 

Wachovia Bk Coml Mtg Tr

 

 

 

1,986,094

 

1,956,126

 

 

 

 

792,632

 

Wamu Mtg

 

 

 

792,632

 

747,834

 

 

 

 

863,759

 

Wamu

 

 

 

863,759

 

792,955

 

 

 

 

1,757,983

 

Washington Mut Mtg Pass Thru C

 

 

 

1,757,983

 

1,696,597

 

 

 

 

1,515,201

 

Wells Fargo Mtg Backed Secs

 

 

 

1,418,606

 

1,439,182

 

 

 

 

1,874,838

 

Wells Fargo Alternative Ln

 

 

 

1,893,891

 

1,893,890

 

 

 

 

450,000

 

Midamerican Energy Hldgs Co N

 

 

 

454,005

 

444,485

 

 

 

 

1,150,000

 

Anz Cap Tr I

 

 

 

1,150,000

 

1,131,566

 

 

 

 

225,000

 

Aspen Ins Hldgs Ltd

 

 

 

212,963

 

219,213

 

 

 

 

350,000

 

Bear Stearns Cos Inc

 

 

 

348,978

 

339,303

 

 

 

 

550,000

 

Capital One Finl Corp

 

 

 

549,736

 

538,205

 

 

 

 

400,000

 

Chase Manhattan Corp New

 

 

 

423,932

 

428,687

 

 

 

 

600,000

 

Citigroup Inc

 

 

 

611,988

 

614,835

 

 

 

 

1,200,000

 

Credit Suisse First Boston USA

 

 

 

1,190,045

 

1,188,605

 

 

 

 

950,000

 

Credit Suisse First Boston USA

 

 

 

882,037

 

919,988

 

 

 

 

1,200,000

 

Fleet Boston Corp

 

 

 

1,336,142

 

1,257,699

 

 

 

 

350,000

 

Hartford Finl Svcs Group Inc

 

 

 

348,719

 

352,904

 

 

 

 

 

21


 

Target Corporation 401(k) Plan

 

EIN: 41-0215170

Plan #002

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)

 

Face Amount

 

 

 

Contract

 

 

 

 

 

 

 

 

 

 

 

Amount or

 

 

 

Issuer

 

 

 

Investments

 

Wrapper

 

Adjustment

 

 

 

Number of

 

Identity of Issue and

 

Moody’s/

 

 

 

at Fair

 

Contracts at

 

to Contract

 

Contract

 

Shares/Units

 

Description of Investment

 

S&P Rating

 

Cost

 

Value

 

Fair Value

 

Value

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNTHETIC GUARANTEED INVESTMENT CONTRACTS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

325,000

 

Huntington Natl Bk Columbus OH

 

 

 

$

313,719

 

$

323,095

 

$

 

$

 

$

 

550,000

 

Istar Finl Inc

 

 

 

549,758

 

488,395

 

 

 

 

175,000

 

JPMargan Chase + Co Formerly