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Target Reports Third Quarter 2012 Earnings

  Target Reports Third Quarter 2012 Earnings

            Adjusted EPS of $0.90 Up 4.3% from Third Quarter 2011;
   GAAP EPS of $0.96 Includes 15-cent Gain from Pending Receivables Sale^1

Business Wire

MINNEAPOLIS -- November 15, 2012

Target  Corporation (NYSE: TGT) today reported third quarter net earnings of
$637 million, or $0.96 per share, which includes a 15-cent gain from the
pending sale of its credit-card receivables portfolio.^1 Adjusted earnings per
share, a measure the company believes is useful in providing period-to-period
comparisons of the results of its U.S. operations, were $0.90 in third quarter
2012, up 4.3 percent from $0.86 in 2011. A reconciliation of non-GAAP
financial measures to GAAP measures is provided in the tables attached to this
press release. All earnings per share figures refer to diluted earnings per
share.

“We’re pleased with Target’s third quarter financial performance, which
reflects superb execution across each of our business segments,” said Gregg
Steinhafel, chairman, president, and chief executive officer of Target
Corporation. “We are well-positioned to deliver strong fourth quarter
performance by offering compelling merchandise and unbeatable value through
initiatives liketheTarget/Neiman Marcus Holiday Collection, 5% REDcard
Rewards and our new Holiday Price Match which allow our guests to shop at
Target with confidence throughout the holiday season.”


^1Please refer to the detail provided in the reconciliation of GAAP to
adjusted EPS in the tables attached to this release.


Fiscal 2012 Earnings Guidance

For fourth quarter 2012, the company expects adjusted EPS of $1.64 to $1.74
and GAAP EPS of $1.45 to $1.55. The 19-cent difference between these ranges
reflects the expected EPS impact of expenses related to the company’s Canadian
market entry.

U.S. Retail Segment Results

As previously reported, sales increased 3.4 percent to $16.6 billion in third
quarter 2012 from $16.1 billion last year, reflecting a 2.9 percent increase
in comparable-store sales combined with the contribution from new stores.

Segment earnings before interest expense and income taxes (EBIT) were $963
million in the third quarter of 2012, an increase of 3.4 percent from $931
million in 2011. Third quarter EBITDA and EBIT margin rates were 8.9 percent
and 5.8 percent, respectively, compared with 9.1 percent and 5.8 percent in
2011. Third quarter gross margin rate declined to 30.3 percent in 2012 from
30.5 percent in 2011, reflecting the impact of the company’s integrated growth
strategies partially offset by underlying rate improvements within categories.
Third quarter selling, general and administrative (SG&A) expense rate was 21.4
percent in 2012, unchanged from 2011.

U.S. Credit Card Segment Results^2

Third quarter average receivables decreased 4.7 percent to $5.9 billion in
2012 from $6.2 billion in 2011. Third quarter 2012 portfolio spread to LIBOR
was $138 million, or 9.3 percent, compared with $158 million, or 10.2 percent,
in 2011. Performance in third quarter 2012 reflected a $20 million reduction
in the allowance for doubtful accounts, compared with a $49 million reduction
in third quarter 2011.


^2The Company intends to continue reporting a U.S. Credit Card segment until
the credit card receivables transaction with TD Bank closes in 2013. The
segment results will continue to be reported on the same basis as historical
results.


Canadian Segment Results

Third quarter 2012 EBIT was $(96) million, due to start-up expenses,
depreciation and amortization related to the company’s expected market entry
in 2013. Total expenses related to investments in Target’s Canadian market
entry reduced Target’s earnings per share by approximately 13 cents in third
quarter 2012.^3

Interest Expense and Taxes

Net interest expense for the quarter was $192 million, including $20 million
of interest on capitalized leases related to Target’s Canadian market entry.
Net interest expense was $200 million in third quarter 2011.

The company’s effective income tax rate was 34.5 percent in third quarter
2012, including the favorable resolution of various income tax matters that
benefited third quarter EPS by approximately 4 cents.

Capital Returned to Shareholders

In third quarter 2012, the company repurchased approximately 1.7 million
shares of its common stock at an average price of $62.90, for a total
investment of $104 million. The company also paid dividends of $236 million
during the quarter.

Year-to-date the company has repurchased approximately 21.8 million shares of
its common stock at an average price of $57.53, for a total investment of
$1.25 billion, and paid dividends of $635 million.


^3This amount includes interest expense and tax expense that are not included
in the segment measure of profit. A reconciliation of non-GAAP measures is
included in the tables attached to this release.


Accounting Considerations

As a result of Target’s recently announced agreement to sell its credit card
receivables portfolio to TD Bank Group, third quarter 2012 GAAP earnings per
share reflect a pre-tax gain of $156 million due to a change in the accounting
treatment of its receivables from “held for investment” to “held for sale”.

Miscellaneous

Target Corporation will webcast its third quarter earnings conference call at
9:30 a.m. CST today. Investors and the media are invited to listen to the call
through the company’s website at www.target.com/investors (click on “events &
presentations”). A telephone replay of the call will be available beginning at
approximately 11:30 a.m. CST today through the end of business on November 16,
2012. The replay number is (855) 859-2056 (passcode: 39813512).

Statements in this release regarding fourth quarter 2012 earnings guidance are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements speak only as of the date they
are made and are subject to risks and uncertainties which could cause the
company’s actual results to differ materially. The most important risks and
uncertainties are described in Item 1A of the company’s Form 10-K for the
fiscal year ended January 28, 2012 and Form 10-Q for the fiscal quarter ended
July 28, 2012.

In addition to the GAAP results provided in this release, the company provides
adjusted diluted earnings per share for the three and nine months ended
October 27, 2012 and October 29, 2011. This measure is not in accordance with,
or an alternative for, generally accepted accounting principles in the United
States. The most comparable GAAP measure is diluted earnings per share.
Management believes adjusted EPS is useful in providing period-to-period
comparisons of the results of the company’s U.S. operations. Adjusted EPS
should not be considered in isolation or as a substitution for analysis of the
company’s results as reported under GAAP. Other companies may calculate
adjusted EPS differently than the company does, limiting the usefulness of the
measure for comparisons with other companies.

About Target

Minneapolis-based Target Corporation (NYSE:TGT) serves guests at 1,782 stores
across the United States and at Target.com. The company plans to open its
first stores in Canada in 2013. Since 1946, Target has given 5 percent of its
profit through community grants and programs; today, that giving equals more
than $4 million a week. For more information about Target’s commitment to
corporate responsibility, visit Target.com/hereforgood.

For more information, visit Target.com/Pressroom.

                                                                   
                                                                   
TARGET CORPORATION
                                                                         
Consolidated Statements of Operations
                   Three Months Ended                     Nine Months Ended
                   October      October                   October      October
                   27,          29,                       27,          29,
(millions,
except per       2012       2011       Change    2012       2011       Change 
share data)
(unaudited)
Sales              $ 16,601     $ 16,054     3.4    %     $ 49,589     $ 47,529     4.3    %
Credit card       328       348      (5.8 )     986       1,048    (6.0 ) 
revenues
Total revenues       16,929       16,402     3.2            50,575       48,577     4.1
Cost of sales        11,569       11,165     3.6            34,406       32,874     4.7
Selling,
general and          3,704        3,525      5.1            10,686       10,230     4.4
administrative
expenses
Credit card          106          109        (3.4 )         333          283        17.4
expenses
Depreciation
and                  542          546        (0.7 )         1,603        1,568      2.2
amortization
Gain on
receivables       (156   )   -        n/a       (156   )   -        n/a   
held for sale
Earnings
before
interest             1,164        1,057      10.1           3,703        3,622      2.3
expense and
income taxes
Net interest      192       200      (4.1 )     558       574      (2.7 ) 
expense
Earnings
before income        972          857        13.4           3,145        3,048      3.2
taxes
Provision for     335       302      10.8      1,107     1,100    0.6   
income taxes
Net earnings     $ 637      $ 555      14.8  %   $ 2,038    $ 1,948    4.6   %
Basic earnings   $ 0.97     $ 0.82     18.0  %   $ 3.09     $ 2.85     8.3   %
per share
Diluted
earnings per     $ 0.96     $ 0.82     17.6  %   $ 3.06     $ 2.84     7.9   %
share
Weighted
average common
shares
outstanding
Basic                654.8        673.2      (2.7 ) %       659.3        682.2      (3.4 ) %
Diluted           662.2     678.3    (2.4 ) %    665.8     686.9    (3.1 ) %
                                                                                           

                                                          
                                                                             
TARGET CORPORATION
                                                                             
Consolidated Statements of Financial Position
                              October 27,       January          October 29,
                                                28,
(millions)                  2012           2012          2011        
Assets                        (unaudited)                        (unaudited)
Cash and cash
equivalents, including        $  1,469          $  794           $  821
short-term investments of
$800, $194 and $66
Credit card receivables,         5,647             -                -
held for sale
Credit card receivables,
net of allowance of $0,          -                 5,927            5,713
$430 and $431
Inventory                        9,533             7,918            9,890
Other current assets          1,846         1,810        1,948    
Total current assets             18,495            16,449           18,372
Property and equipment
Land                             6,188             6,122            6,069
Buildings and                    27,800            26,837           26,850
improvements
Fixtures and equipment           5,280             5,141            5,153
Computer hardware and            2,418             2,468            2,457
software
Construction-in-progress         1,365             963              546
Accumulated depreciation      (12,982  )     (12,382 )     (12,035  )
Property and equipment,          30,069            29,149           29,040
net
Other noncurrent assets       1,015         1,032        1,035    
Total assets                $  49,579      $  46,630     $  48,447   
Liabilities and
shareholders' investment
Accounts payable              $  8,050          $  6,857         $  8,053
Accrued and other current        3,631             3,644            3,273
liabilities
Unsecured debt and other         2,528             3,036            2,313
borrowings
Nonrecourse debt
collateralized by credit      1,500         750          500      
card receivables
Total current liabilities        15,709            14,287           14,139
Unsecured debt and other         14,526            13,447           12,897
borrowings
Nonrecourse debt
collateralized by credit         -                 250              3,259
card receivables
Deferred income taxes            1,279             1,191            1,199
Other noncurrent              1,713         1,634        1,689    
liabilities
Total noncurrent                 17,518            16,522           19,044
liabilities
Shareholders' investment
Common stock                     55                56               56
Additional paid-in               3,854             3,487            3,431
capital
Retained earnings                13,069            12,959           12,340
Accumulated other
comprehensive loss
Pension and other benefit        (581     )        (624    )        (516     )
liabilities
Currency translation
adjustment and cash flow      (45      )     (57     )     (47      )
hedges
Total shareholders'           16,352        15,821       15,264   
investment
Total liabilities and       $  49,579      $  46,630     $  48,447   
shareholders' investment
Common shares outstanding     654.5         669.3        671.4    
                                                                             

                                                            
                                                                             
TARGET CORPORATION
                                                                             
Consolidated Statements of Cash Flows                                 
                                               Nine Months Ended             
                                               October 27,       October 29,
(millions) (unaudited)                       2012           2011        
Operating activities
Net earnings                                   $   2,038         $   1,948
Reconciliation to cash flow
Depreciation and amortization                      1,603             1,568
Share-based compensation expense                   74                61
Deferred income taxes                              73                397
Bad debt expense                                   141               67
Gain on receivables held for sale                  (156    )         -
Non-cash (gains)/losses and other, net             (15     )         76
Changes in operating accounts:
Accounts receivable originated at Target           97                120
Inventory                                          (1,615  )         (2,294  )
Other current assets                               (98     )         (131    )
Other noncurrent assets                            -                 49
Accounts payable                                   1,193             1,428
Accrued and other current liabilities              (109    )         (360    )
Other noncurrent liabilities                    122           46      
Cash flow provided by operations                3,348         2,975   
Investing activities
Expenditures for property and equipment            (2,338  )         (3,750  )
Proceeds from disposal of property and             35                7
equipment
Change in accounts receivable originated           192               253
at third parties
Other investments                               86            (114    )
Cash flow required for investing                (2,025  )      (3,604  )
activities
Financing activities
Change in commercial paper, net                    -                 1,211
Additions to long-term debt                        1,971             1,000
Reductions of long-term debt                       (1,024  )         (272    )
Dividends paid                                     (635    )         (549    )
Repurchase of stock                                (1,230  )         (1,693  )
Stock option exercises and related tax             279               66
benefit
Other                                           (16     )      1       
Cash flow required for financing                (655    )      (236    )
activities
Effect of exchange rate changes on cash         7             (26     )
and cash equivalents
Net increase (decrease) in cash and cash           675               (891    )
equivalents
Cash and cash equivalents at beginning of       794           1,712   
period
Cash and cash equivalents at end of period   $   1,469      $   821     
                                                                             


TARGET CORPORATION
                                                                     
U.S. Retail Segment
                                                                     
U.S. Retail
Segment          Three Months Ended                     Nine Months Ended
Results
                 October      October                   October      October
                 27,          29,                       27,          29,
(millions)     2012       2011       Change    2012       2011       Change 
(unaudited)
Sales            $ 16,601     $ 16,054     3.4    %     $ 49,589     $ 47,529     4.3    %
Cost of         11,569    11,165   3.6       34,406    32,874   4.7  
sales
Gross margin       5,032        4,889      2.9            15,183       14,655     3.6
SG&A            3,553     3,433    3.5       10,315    9,988    3.3  
expenses^(a)
EBITDA             1,479        1,456      1.6            4,868        4,667      4.3
Depreciation
and             516       525      (1.7 )     1,526     1,527    (0.1 ) 
amortization
EBIT           $ 963      $ 931      3.4   %   $ 3,342    $ 3,140    6.4   %

EBITDA is earnings before interest expense, income taxes, depreciation and
amortization.
EBIT is earnings before interest expense and income taxes.
^(a) Loyalty program charges were $78 million and $74 million for the three
months ended October 27, 2012 and October 29, 2011, respectively, and $217
million and $189 million for the nine months ended October 27, 2012 and
October 29, 2011, respectively. In all periods, these amounts were recorded as
reductions to SG&A expenses within the U.S. Retail Segment and increases to
operations and marketing expenses within the U.S. Credit Card Segment.

                                                                      
U.S. Retail Segment         Three Months Ended       Nine Months Ended   
Rate Analysis
                              October      October     October    October
                              27,           29,          27,         29,
(unaudited)                 2012        2011       2012      2011    
Gross margin rate             30.3      %   30.5     %   30.6    %   30.8    %
SG&A expense rate             21.4          21.4         20.8        21.0
EBITDA margin rate            8.9           9.1          9.8         9.8
Depreciation and
amortization expense          3.1           3.3          3.1         3.2
rate
EBIT margin rate            5.8         5.8        6.7       6.6     
Rate analysis metrics are computed by dividing the applicable amount by sales.
                                                                
Comparable-Store Sales        Three Months Ended       Nine Months Ended   
                              October       October      October     October
                              27,           29,          27,         29,
(unaudited)                 2012        2011       2012      2011    
Comparable-store sales        2.9       %   4.3      %   3.7     %   3.4     %
change
Drivers of change in
comparable-store sales:
Number of transactions        0.5           0.3          1.0         0.4
Average transaction           2.4           4.1          2.7         3.1
amount
Selling price per unit        1.2           1.6          1.6         0.2
Units per transaction       1.2         2.5        1.0       2.9     
The comparable-store sales increases or decreases above are calculated by
comparing
sales in fiscal year periods with comparable prior-year periods of equivalent
length.
                                                                
REDcard Penetration           Three Months Ended       Nine Months Ended   
                              October       October      October     October
                              27,           29,          27,         29,
(unaudited)                 2012        2011       2012      2011    
Target Credit Cards           8.0       %   6.9      %   7.6     %   6.5     %
Target Debit Cards          6.0         2.6        5.2       2.1     
Total Store REDcard         14.0      %  9.5      %  12.8    %  8.6     %
Penetration
Represents the percentage of Target store sales that are paid for using
REDcards.


Number of
Stores and    Number of Stores                  Retail Square Feet^(a)
Retail
Square Feet
                October   January   October     October   January   October
                27,         28,         29,         27,         28,         29,
(unaudited)   2012      2012      2011      2012      2012      2011
Target
general         395         637         640         47,038      76,999      77,349
merchandise
stores
Expanded
food            1,130       875         875         146,087     114,219     114,218
assortment
stores
SuperTarget     251         251         252         44,500      44,503      44,681
stores
CityTarget    5         -         -         514       -         -
stores
Total         1,781     1,763     1,767     238,139   235,721   236,248
^(a) In thousands; reflects total square feet, less office, distribution center and
vacant space.


                                                                                                             
TARGET CORPORATION
                                                                                            
U.S. Credit Card Segment
                                                                                        
U.S. Credit
Card Segment       Three Months Ended         Three Months Ended         Nine Months Ended          Nine Months Ended
Results
                   October 27, 2012           October 29, 2011           October 27, 2012           October 29, 2011
                               Annualized                 Annualized                 Annualized                 Annualized
(millions)       Amount    Rate^(d)     Amount    Rate^(d)     Amount    Rate^(d)     Amount    Rate^(d)
(unaudited)
Finance charge     $ 265       18.0       %   $ 279       18.1       %   $ 801       17.9       %   $ 849       18.0       %
revenue
Late fees and        44        3.0              47        3.1              126       2.8              133       2.8
other revenue
Third party       19      1.3           22      1.4           59      1.3           66      1.4
merchant fees
Total revenues    328     22.3          348     22.5          986     22.1          1,048   22.2
Bad debt             46        3.1              40        2.6              141       3.2              67        1.4
expense
Operations and
marketing            138       9.4              143       9.2              409       9.2              405       8.6
expenses^(a)
Depreciation
and               3       0.2           4       0.3           11      0.2           13      0.3
amortization
Total expenses    187     12.7          187     12.1          561     12.5          485     10.3
EBIT                 141       9.6              161       10.4             425       9.5              563       11.9
Interest
expense on
nonrecourse
debt
collateralized
by credit card    3                    18                   8                    55      
receivables
Segment profit   $ 138                 $ 143                 $ 417                 $ 508     
Average
receivables        $ 4,393                    $ 2,427                    $ 4,557                    $ 2,443
funded by
Target^(b)
Segment pretax    12.5  %               23.6  %               12.2  %               27.7  %  
ROIC^(c)

^(a) See footnote (a) to our U.S. Retail Segment Results table for an
explanation of our loyalty program charges.
^(b)  Amounts represent the portion of average credit card receivables, at
par, funded by Target. These amounts exclude $1,500 million and $1,395 million
for the three and nine months ended October 27, 2012, respectively, and $3,754
million and $3,843 million for the three and nine months ended October 29,
2011, respectively, of receivables funded by nonrecourse debt collateralized
by credit card receivables.
^(c)  ROIC is return on invested capital, and this rate equals our segment
profit divided by average credit card receivables, at par, funded by Target,
expressed as an annualized rate.
^(d)  As an annualized percentage of average credit card receivables, at par.

                                                                                                                               
Spread
Analysis -    Three Months Ended              Three Months Ended              Nine Months Ended               Nine Months Ended
Total
Portfolio
                October 27, 2012                  October 29, 2011                  October 27, 2012                  October 29, 2011
                Yield                             Yield                             Yield                             Yield
                Amount      Annualized          Amount      Annualized          Amount      Annualized          Amount      Annualized
(unaudited)   (in         Rate             (in         Rate             (in         Rate             (in         Rate
                millions)                         millions)                         millions)                         millions)
EBIT            $   141       9.6    %   ^(c)     $   161       10.4   %   ^(c)     $   425       9.5    %   ^(c)     $   563       11.9   %   ^(c)
LIBOR^(a)                     0.2    %                          0.2    %                          0.2    %                          0.2    %
Spread to     $   138     9.3    %   ^(c)   $   158     10.2   %   ^(c)   $   415     9.3    %   ^(c)   $   552     11.7   %   ^(c)
LIBOR^(b)

Note: Annualized rates are calculated on a standalone basis.
^(a) Balance-weighted one-month LIBOR.
^(b) Spread to LIBOR is a metric used to analyze the performance of our total
credit card portfolio because the majority of our portfolio earns finance
charge revenue at rates tied to the Prime Rate, and the interest rate on all
nonrecourse debt collateralized by credit card receivables is tied to LIBOR.
^(c)  As an annualized percentage of average credit card receivables, at par.

                                                                              
Receivables
Rollforward      Three Months Ended                    Nine Months Ended          
Analysis
                   October         October                October         October
                   27,             29,                    27,             29,
(millions)       2012          2011       Change   2012          2011       Change
(unaudited)
Beginning
credit card        $ 5,905         $ 6,202      (4.8  ) % $ 6,357         $ 6,843      (7.1  ) %
receivables,
at par
Charges at           1,456           1,205      20.8        4,142           3,348      23.7
Target
Charges at           1,143           1,283      (10.9 )     3,488           3,886      (10.2 )
third parties
Payments             (2,902 )        (2,784 )   4.2         (8,837 )        (8,577 )   3.0
Other             234          238      (2.1  )   686          644      6.4   
Period-end
credit card       5,836   ^(a)  6,144    (5.0  )   5,836   ^(a)  6,144    (5.0  )
receivables,
at par
Average credit
card             $ 5,893       $ 6,181    (4.7  )  $ 5,952       $ 6,287    (5.3  )
receivables,
at par
Accounts with three or more payments (60+ days) past due as a percentage
of period-end
credit card       2.8    %      3.3    %           2.8    %      3.3    %  
receivables,
at par
Accounts with four or more payments (90+ days) past due as a percentage
of period-end
credit card       1.9    %      2.2    %           1.9    %      2.2    %  
receivables,
at par
                                                                      
Allowance for
Doubtful           Three Months Ended                     Nine Months Ended
Accounts
                   October         October                October         October
                   27,             29,                    27,             29,
(millions)       2012          2011       Change   2012          2011       Change
(unaudited)
Allowance at
beginning of       $ 365           $ 480        (23.8 ) % $ 430           $ 690        (37.7 ) %
period
Bad debt             46              40         15.3        141             67         109.8
expense
Write-offs^(b)       (95    )        (122   )   (21.0 )     (326   )        (448   )   (27.1 )
Recoveries^(b)    29           33       (12.6 )   100          122      (17.6 )
Segment
allowance at      345     ^(a)  431      (20.1 )   345     ^(a)  431      (20.1 )
end of period
As a percentage of period-end credit
card
receivables,      5.9    %      7.0    %           5.9    %      7.0    %  
at par
Net write-offs as an annualized percentage of
average credit
card              4.5    %      5.7    %           5.1    %      6.9    %  
receivables,
at par

^(a) Period-end credit card receivables, at par, less the segment allowance of
$345 million, plus the gain on receivables held for sale of $156 million
represents credit card receivables, held for sale as reported on the
Consolidated Statements of Financial Position.
^(b)  Write-offs include the principal amount of losses (excluding accrued and
unpaid finance charges), and recoveries include current period collections on
previously written-off balances. These amounts combined represent net
write-offs.

                                                                             
TARGET CORPORATION
                                                                                                 
Canadian Segment
                                                                         
Canadian Segment     Three Months Ended                       Nine Months Ended
Results
                     October       October                    October       October
                     27,           29,                        27,           29,
(millions)         2012       2011       Change    2012       2011       Change 
(unaudited)
Sales                $  -          $  -          -      %     $  -          $  -          -      %
Cost of sales        -         -       -           -         -       -      
Gross margin            -             -          -               -             -          -
SG&A                 72        18      317.4       154       53      188.4  
expenses^(a)
EBITDA                  (72  )        (18  )     317.4           (154 )        (53  )     188.4
Depreciation and     24        17      36.7        67        28      139.3  
amortization^(b)
EBIT               $  (96  )   $  (35  )   177.2  %   $  (221 )   $  (81  )   171.5  %

EBITDA is earnings/(loss) before interest expense, income taxes, depreciation
and amortization.
EBIT is earnings/(loss) before interest expense and income
taxes.
^(a)  SG&A expenses include start-up costs consisting primarily of
compensation, benefits and consulting expenses.
^(b)  Depreciation and amortization results from depreciation of capital lease
assets and leasehold interests. For the three and nine months ended October
27, 2012, the lease payment obligation also gave rise to $20 million and $58
million of interest expense, respectively, compared with $15 million and $25
million for the three and nine months ended October 29, 2011, respectively,
recorded in our Consolidated Statements of Operations.


TARGET CORPORATION
                                                                              
Reconciliation of Non-GAAP Financial Measures
                                                                    
                   Three Months Ended                    Nine Months Ended
                   October     October                   October      October
                   27,         29,                       27,          29,
(unaudited)      2012      2011      Change      2012       2011          Change
GAAP diluted
earnings per       $ 0.96      $  0.82       17.6  %     $  3.06      $  2.84             7.9    %
share
Adjustments       (0.06 )    0.04                0.06      0.09       
Adjusted
diluted          $ 0.90    $  0.86    4.3   %   $  3.12    $  2.93         6.8    %
earnings per
share
A detailed
reconciliation
is provided
below.
                                                                    
(millions,                     U.S.
except per       U.S.      Credit     Total       Canadian   Other         Consolidated
share data)        Retail      Card        U.S.                                        GAAP Total
(unaudited)
Three Months
Ended October
27, 2012
Segment profit     $ 963       $  138      $ 1,100       $  (96   )   $  -             $  1,005
Other net
interest                                     168            20           -                189
expense^(a)
Gain on
receivables                                 -          -         (156 )        (156   )
held for sale
Earnings
before income                                932            (116  )      156              972
taxes
Provision for
income                                      337        (33   )    31    ^(d)    335    
taxes^(b)
Net earnings                               $ 595      $  (83   )  $  125        $  637    
Diluted
earnings per                       $ 0.90     $  (0.13 )  $  0.19       $  0.96   
share^(c)
Three Months
Ended October
29, 2011
Segment profit     $ 931       $  143      $ 1,074       $  (35   )   $  -             $  1,039
Other net
interest                                    167        15        -            182    
expense^(a)
Earnings
before income                                907            (50   )      -                857
taxes
Provision for
income                                      323        (15   )    (6   ) ^(d)    302    
taxes^(b)
Net earnings                               $ 584      $  (35   )  $  6          $  555    
Diluted
earnings per                       $ 0.86     $  (0.05 )  $  0.01       $  0.82   
share^(c)
                                                                                       
Nine Months
Ended October
27, 2012
Segment profit     $ 3,342     $  417      $ 3,759       $  (221  )   $  -             $  3,539
Other net
interest                                     491            58           -                550
expense^(a)
Gain on
receivables                                 -          -         (156 )        (156   )
held for sale
Earnings
before income                                3,268          (279  )      156              3,145
taxes
Provision for
income                                      1,187      (80   )    -     ^(d)    1,107  
taxes^(b)
Net earnings                               $ 2,081    $  (199  )  $  156        $  2,038  
Diluted
earnings per                       $ 3.12     $  (0.30 )  $  0.23       $  3.06   
share^(c)
Nine Months
Ended October
29, 2011
Segment profit     $ 3,140     $  508      $ 3,648       $  (81   )   $  -             $  3,567
Other net
interest                                    494        25        -            519    
expense^(a)
Earnings
before income                                3,154          (106  )      -                3,048
taxes
Provision for
income                                      1,144      (30   )    (15  ) ^(d)    1,100  
taxes^(b)
Net earnings                               $ 2,010    $  (76   )  $  15         $  1,948  
Diluted
earnings per                       $ 2.93     $  (0.11 )  $  0.02       $  2.84   
share^(c)

Note: Our segment measure of profit is used by management to evaluate the
return on our investment and to make operating decisions. To provide
additional transparency, we have disclosed non-GAAP adjusted diluted earnings
per share, which excludes the impact of our planned 2013 Canadian market
entry, the gain on receivables held for sale and favorable resolution of
various income tax matters. We believe this information is useful in providing
period-to-period comparisons of the results of our U.S. operations. The sum of
the non-GAAP adjustments may not equal the total adjustment amounts due to
rounding.

^(a)  Represents interest expense, net of interest income, not included in
U.S. Credit Card segment profit. For the three and nine months ended October
27, 2012, U.S. Credit Card segment profit included $3 million and $8 million
of interest expense on nonrecourse debt collateralized by credit card
receivables, compared with $18 million and $55 million in the respective prior
year periods. These amounts, along with other net interest expense, equal
consolidated GAAP net interest expense.
^(b)  Taxes are allocated to our business segments based on estimated income
tax rates applicable to the operations of the segment for the period.
^(c)  For the three and nine months ended October 27, 2012, average diluted
shares outstanding were 662.2 million and 665.8 million, respectively, and for
the three and nine months ended October 29, 2011, average diluted shares
outstanding were 678.3 million and 686.9 million, respectively.
^(d)  Represents the effect of the resolution of income tax matters. The
results for the three and nine months ended October 27, 2012 also include a
$57 million tax effect related to the gain on receivables held for sale.

Contact:

Target Corporation
John Hulbert, Investors, 612-761-6627
or
Stacey Wempen, Financial Media, 612-761-6785
or
Target Media Hotline, 612-696-3400
 
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