Target Reports Fourth Quarter and Fiscal 2012 Earnings

  Target Reports Fourth Quarter and Fiscal 2012 Earnings

   Adjusted EPS of $1.65 in the fourth quarter and $4.76 for full-year 2012

     GAAP EPS of $1.47 in the fourth quarter and $4.52 for full-year 2012

Business Wire

MINNEAPOLIS -- February 27, 2013

Target  Corporation (NYSE: TGT):

  *Target’s full-year 2012 adjusted earnings per share of $4.76 and GAAP
    earnings per share of $4.52 both exceeded the expected range provided at
    the beginning of the year.
  *In 2012, U.S. Retail Segment EBIT grew 5.3 percent on 5.1 percent sales
    growth.
  *The U.S. Credit Card Segment experienced a full-year 2012 spread to LIBOR
    of 9.1 percent, significantly better than expectations one year ago.
  *In 2012, the Company returned more than $2.7 billion to shareholders
    through dividends and share repurchase, representing more than 90 percent
    of net earnings.

Target  Corporation (NYSE: TGT) today reported fourth quarter net earnings of
$961 million, or $1.47 per share, and full-year net earnings of $2,999
million, or $4.52 per share. 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 $1.65 in fourth quarter 2012, up 10.1
percent from $1.49 in 2011. Full-year adjusted earnings per share were $4.76,
up 7.9 percent from $4.41 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 fourth quarter performance, particularly in the
face of a highly promotional retail environment and continued consumer
uncertainty,” said Gregg Steinhafel, chairman, president, and chief executive
officer of Target Corporation. “Outstanding discipline and execution by our
team allowed us to achieve our full-year financial and strategic goals in
2012. We believe these results position us well to deliver on significant
plans in 2013, including completion of the largest store opening program in
our company’s history with 124 stores in Canada and additional Target and
CityTarget locations in the U.S., investing in new processes and technology
that will improve our guests’ multichannel experience and closing the sale of
our credit card receivables.”

Fiscal 2013 Earnings Guidance

For fiscal 2013, the Company expects adjusted EPS of $4.85 to $5.05 and GAAP
EPS of $4.70 to $4.90. The difference between the adjusted and GAAP EPS ranges
reflects expected EPS dilution related to our Canadian Segment of
approximately (45) cents, partially offset by expected accounting impacts of
approximately 30 cents associated with the sale of Target’s entire consumer
credit card receivables portfolio to TD Bank Group, which the Company now
expects to close in first quarter 2013.

In first quarter 2013, the Company expects adjusted EPS of $1.10 to $1.20 and
GAAP EPS of $1.22 to $1.32. The difference between the adjusted and GAAP EPS
ranges reflects expected EPS dilution related to our Canadian Segment of
approximately (23) cents, more-than-offset by expected accounting impacts of
approximately 35 cents associated with the sale of Target’s entire consumer
credit card receivables portfolio to TD Bank Group.

U.S. Retail Segment Results

As previously reported, sales increased 6.8 percent to $22.4 billion in fourth
quarter 2012 from $20.9 billion last year, reflecting a 0.4 percent increase
in comparable-store sales combined with the contribution from new stores and
one additional accounting week^1. Segment earnings before interest expense and
income taxes (EBIT) were $1,677 million in the fourth quarter of 2012, an
increase of 3.2 percent from $1,625 million in 2011.

Fourth quarter EBITDA and EBIT margin rates were 9.8 percent and 7.5 percent,
respectively, compared with 10.3 percent and 7.8 percent in 2011. Fourth
quarter gross margin rate declined to 27.8 percent in 2012 from 28.4 percent
in 2011, reflecting the impact of the Company’s integrated growth strategies
combined with the impact of markdowns on seasonal merchandise. Fourth quarter
selling, general and administrative (SG&A) expense rate was 18.0 percent in
2012, compared with 18.1 percent in 2011.

Full-year 2012 sales increased 5.1 percent to $72.0 billion from $68.5 billion
in 2011, reflecting a 2.7 percent increase in comparable-store sales combined
with the contribution from new stores and one additional accounting week^1.
Full-year segment EBIT was $5,019 million in 2012, an increase of 5.3 percent
from $4,765 million in 2011.

Full-year 2012 EBITDA and EBIT margin rates were 9.8 percent and 7.0 percent,
respectively, compared with 10.0 percent and 7.0 percent in 2011. Full-year
gross margin rate was 29.7 percent in 2012, compared with 30.1 percent in
2011, reflecting the impact of the Company’s integrated growth strategies.
Full-year SG&A expense rate was 19.9 percent in 2012, compared with 20.1
percent in 2011.


^1 The three- and twelve-month periods ended February 2, 2013 were 14- and
53-week periods, respectively, compared with 13- and 52-week periods in 2011.
The extra week has been excluded from the comparable-store sales calculation.


U.S. Credit Card Segment Results^2

Fourth quarter average receivables decreased 4.6 percent to $6.1 billion in
2012 from $6.4 billion in 2011. Fourth quarter 2012 portfolio spread to LIBOR
was $141 million, or 8.5 percent, compared with $111 million, or 6.9 percent,
in 2011. Performance in fourth quarter 2012 reflected a $10 million reduction
in the allowance for doubtful accounts, compared with a $1 million reduction
in fourth quarter 2011.

Average receivables for the full year decreased 5.1 percent to $6.0 billion in
2012 from $6.3 billion in 2011. Fiscal year 2012 portfolio spread to LIBOR was
$555 million, or 9.1 percent, compared with $663 million, or 10.5 percent, in
2011. Fiscal year performance reflected a $95 million reduction in the
allowance for doubtful accounts, compared with a $260 million reduction in
2011.


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


Canadian Segment Results

Fourth quarter and full-year 2012 EBIT was $(148) million and $(369) million,
respectively, 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 18 cents in fourth quarter 2012 and 48 cents in fiscal
2012^3.


^3 This 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.


Interest Expense and Taxes

Net interest expense for the fourth quarter was $204 million, compared with
$292 million in fourth quarter 2011. Full-year interest expense was $762
million in 2012, compared with $866 million in 2011. Decreases in fourth
quarter and full-year interest expense were due primarily to an $87 million
charge related to the early retirement of debt in fourth quarter 2011.

The Company’s effective income tax rate was 34.3 percent in the fourth quarter
and 34.9 percent for the full year 2012. The full-year 2012 effective income
tax rate includes the favorable resolution of various income tax matters that
benefited EPS by approximately 9 cents. In 2011, the favorable resolution of
various income tax matters increased fourth quarter EPS by approximately 10
cents and increased full-year EPS by approximately 12 cents.

Capital Returned to Shareholders

In fourth quarter 2012, the Company repurchased approximately 10.4 million
shares of its common stock at an average price of $61.96 for a total
investment of $645 million. The Company also paid dividends of $234 million
during the quarter.

For the full year, the Company repurchased approximately 32.2 million shares
of its common stock at an average price of $58.96 for a total investment of
$1.90 billion, and paid dividends of $869 million. Shares acquired in fiscal
2012 represent 4.8 percent of shares outstanding at the beginning of the
fiscal year.

Accounting Considerations

As a result of Target’s agreement to sell its entire consumer credit card
receivables portfolio to TD Bank Group, GAAP earnings reflect fourth quarter
and full-year pre-tax gains of $5 million and $161 million, respectively.
These gains are related to the accounting treatment of the consumer credit
card receivables as “held for sale” assets.

Miscellaneous

Target Corporation will webcast its fourth 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 March 1,
2013. The replay number is (855) 859-2056 (passcode: 78426370).

Statements in this release regarding full year and first quarter 2013 earnings
guidance, the closing of the credit card receivables transaction and timing
thereof, the deployment of proceeds and the transaction’s expected impact on
earnings performance 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 include: (i) the risk that the credit card
receivables transaction may not close or may not close on the expected
timeline, and (ii) the risks 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 twelve months ended
February 2, 2013 and January 28, 2012, respectively. 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 1,778 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                      Twelve Months Ended
                   February     January                    February     January
                   2,           28,                        2,           28,
(millions,
except per       2013       2012       Change     2013       2012       Change  
share data)
(unaudited)
Sales              $ 22,370     $ 20,937     6.8     %     $ 71,960     $ 68,466     5.1     %
Credit card       356       351      1.8        1,341     1,399    (4.1  ) 
revenues
Total revenues       22,726       21,288     6.8             73,301       69,865     4.9
Cost of sales        16,160       14,986     7.8             50,568       47,860     5.7
Selling,
general and          4,229        3,876      9.1             14,914       14,106     5.7
administrative
expenses
Credit card          135          162        (16.5 )         467          446        5.1
expenses
Depreciation
and                  539          564        (4.4  )         2,142        2,131      0.5
amortization
Gain on
receivables       (5     )   -        n/a        (161   )   -        n/a    
held for sale
Earnings
before
interest             1,668        1,700      (1.9  )         5,371        5,322      0.9
expense and
income taxes
Net interest      204       292      (30.2 )     762       866      (12.0 ) 
expense
Earnings
before income        1,464        1,408      4.0             4,609        4,456      3.4
taxes
Provision for     503       427      17.8       1,610     1,527    5.4    
income taxes
Net earnings     $ 961      $ 981      (2.0  ) %   $ 2,999    $ 2,929    2.4    %
Basic earnings   $ 1.48     $ 1.46     1.2    %   $ 4.57     $ 4.31     5.9    %
per share
Diluted
earnings per     $ 1.47     $ 1.45     0.9    %   $ 4.52     $ 4.28     5.6    %
share
Weighted
average common
shares
outstanding
Basic                648.8        669.7      (3.1  ) %       656.7        679.1      (3.3  ) %
Diluted           655.8     675.0    (2.8  ) %    663.3     683.9    (3.0  ) %
                                                                                             

Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.

Subject to reclassification

                                                            
                                                                             
TARGET CORPORATION
                                                                             
Consolidated Statements of Financial Position                               
                                               February 2,       January 28,
(millions)                                   2013           2012        
Assets                                         (unaudited)
Cash and cash equivalents, including           $  784            $  794
short-term investments of $130 and $194
Credit card receivables, held for sale            5,841             -
Credit card receivables, net of allowance         -                 5,927
of $0 and $430
Inventory                                         7,903             7,918
Other current assets                           1,860         1,810    
Total current assets                              16,388            16,449
Property and equipment
Land                                              6,206             6,122
Buildings and improvements                        28,653            26,837
Fixtures and equipment                            5,362             5,141
Computer hardware and software                    2,567             2,468
Construction-in-progress                          1,176             963
Accumulated depreciation                       (13,311  )     (12,382  )
Property and equipment, net                       30,653            29,149
Other noncurrent assets                        1,122         1,032    
Total assets                                 $  48,163      $  46,630   
Liabilities and shareholders' investment
Accounts payable                               $  7,056          $  6,857
Accrued and other current liabilities             3,981             3,644
Unsecured debt and other borrowings               1,494             3,036
Nonrecourse debt collateralized by credit      1,500         750      
card receivables
Total current liabilities                         14,031            14,287
Unsecured debt and other borrowings               14,654            13,447
Nonrecourse debt collateralized by credit         -                 250
card receivables
Deferred income taxes                             1,311             1,191
Other noncurrent liabilities                   1,609         1,634    
Total noncurrent liabilities                      17,574            16,522
Shareholders' investment
Common stock                                      54                56
Additional paid-in capital                        3,925             3,487
Retained earnings                                 13,155            12,959
Accumulated other comprehensive loss
Pension and other benefit liabilities             (532     )        (624     )
Currency translation adjustment and cash       (44      )     (57      )
flow hedges
Total shareholders' investment                 16,558        15,821   
Total liabilities and shareholders'          $  48,163      $  46,630   
investment
Common shares outstanding                      645.3         669.3    
                                                                             

Subject to reclassification

                                                            
                                                                             
TARGET CORPORATION
                                                                             
Consolidated Statements of Cash Flows
                                               Twelve Months Ended
                                               February 2,       January 28,
(millions)                                   2013           2012        
Operating activities                           (unaudited)
Net earnings                                   $   2,999         $   2,929
Reconciliation to cash flow
Depreciation and amortization                      2,142             2,131
Share-based compensation expense                   105               90
Deferred income taxes                              (14     )         371
Bad debt expense^(a)                               206               154
Gain on receivables held for sale                  (161    )         -
Noncash (gains)/losses and other, net              14                22
Changes in operating accounts:
Accounts receivable originated at Target           (217    )         (187    )
Inventory                                          15                (322    )
Other current assets                               (123    )         (150    )
Other noncurrent assets                            (98     )         43
Accounts payable                                   199               232
Accrued and other current liabilities              138               218
Other noncurrent liabilities                    120           (97     )
Cash flow provided by operations                5,325         5,434   
Investing activities
Expenditures for property and equipment            (3,277  )         (4,368  )
Proceeds from disposal of property and             66                37
equipment
Change in accounts receivable originated           254               259
at third parties
Other investments                               102           (108    )
Cash flow required for investing                (2,855  )      (4,180  )
activities
Financing activities
Change in commercial paper, net                    970               -
Additions to short-term debt                       -                 1,500
Reductions of short-term debt                      (1,500  )         -
Additions to long-term debt                        1,971             1,994
Reductions of long-term debt                       (1,529  )         (3,125  )
Dividends paid                                     (869    )         (750    )
Repurchase of stock                                (1,875  )         (1,842  )
Stock option exercises and related tax             360               89
benefit
Other                                           (16     )      (6      )
Cash flow required for financing                (2,488  )      (2,140  )
activities
Effect of exchange rate changes on cash         8             (32     )
and cash equivalents
Net decrease in cash and cash equivalents          (10     )         (918    )
Cash and cash equivalents at beginning of       794           1,712   
period
Cash and cash equivalents at end of period   $   784        $   794     
                                                                             

^(a)  Includes both bad debt expense on credit card receivables through the
end of the third quarter of 2012 and net write-offs of credit card receivables
during the fourth quarter of 2012.

Subject to reclassification



TARGET CORPORATION
                                                                     
U.S. Retail Segment
                                                                     
U.S. Retail
Segment          Three Months Ended                     Twelve Months Ended
Results
                 February     January                   February     January
                 2,           28,                       2,           28,
(millions)     2013       2012       Change    2013       2012       Change 
(unaudited)
Sales            $ 22,370     $ 20,937     6.8    %     $ 71,960     $ 68,466     5.1    %
Cost of         16,160    14,986   7.8       50,568    47,860   5.7   
sales
Gross margin       6,210        5,951      4.3            21,392       20,606     3.8
SG&A            4,028     3,786    6.4       14,342    13,774   4.1   
expenses^(a)
EBITDA             2,182        2,165      0.8            7,050        6,832      3.2
Depreciation
and             505       540      (6.5 )     2,031     2,067    (1.8 ) 
amortization
EBIT           $ 1,677    $ 1,625    3.2   %   $ 5,019    $ 4,765    5.3   %
                                                                                         

Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.
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 $83 million and $70 million for the three
months ended February 2, 2013 and January 28, 2012, respectively, and $300
million and $258 million for the twelve months ended February 2, 2013 and
January 28, 2012, 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         Twelve Months Ended   
Rate Analysis
                         February     January        February     January
                         2,            28,            2,            28,
(unaudited)            2013        2012        2013        2012    
Gross margin rate        27.8     %   28.4    %     29.7     %   30.1    %
SG&A expense rate        18.0          18.1           19.9          20.1
EBITDA margin rate       9.8           10.3           9.8           10.0
Depreciation and
amortization expense     2.3           2.6            2.8           3.0
rate
EBIT margin rate       7.5         7.8         7.0         7.0     
                                                                            

Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.
Rate analysis metrics are computed by dividing the applicable amount by sales.


Comparable-Store       Three Months Ended         Twelve Months Ended   
Sales
                         February     January        February     January
                         2,            28,            2,            28,
(unaudited)            2013        2012        2013        2012    
Comparable-store         0.4      %   2.2     %     2.7      %   3.0     %
sales change
Drivers of change in
comparable-store
sales:
Number of                (1.0)         0.4            0.5           0.4
transactions
Average transaction      1.4           1.8            2.3           2.6
amount
Selling price per        0.6           0.9            1.3           0.3
unit
Units per              0.7         0.9         1.0         2.3     
transaction
                                                                            

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         Twelve Months Ended   
                         February     January        February     January
                         2,            28,            2,            28,
(unaudited)            2013        2012        2013        2012    
Target Credit Cards      8.5      %   7.4     %     7.9      %   6.8     %
Target Debit Cards     7.0         3.4         5.7         2.5     
Total Store REDcard    15.5     %  10.8    %   13.6     %  9.3     %
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
                          February 2,   January     February 2,    January
                                          28,                         28,
(unaudited)             2013          2012      2013          2012
Target general            391             637         46,584         76,999
merchandise stores
Expanded food             1,131           875         146,249         114,219
assortment stores
SuperTarget stores        251             251         44,500          44,503
CityTarget stores       5             -         514           -
Total                   1,778         1,763     237,847       235,721
                                                                      

^(a) In thousands; reflects total square feet, less office, distribution
center and vacant space.

Subject to reclassification

                                                                                                                          
                                                                                                                                        
TARGET CORPORATION
                                                                                                     
U.S. Credit Card Segment

U.S. Credit
Card Segment       Three Months Ended             Three Months Ended             Twelve Months Ended            Twelve Months Ended
Results
                   February 2, 2013               January 28, 2012               February 2, 2013               January 28, 2012
                                Annualized                     Annualized                     Annualized                     Annualized
(millions)       Amount     Rate^(d)       Amount     Rate^(d)       Amount     Rate^(d)       Amount     Rate^(d)
(unaudited)
Finance charge     $ 287        17.5       %     $ 282        17.6       %     $ 1,089      17.8       %     $ 1,131      17.9       %
revenue
Late fees and        48         2.9                 46         2.9                 173        2.8                 179        2.8
other revenue
Third party       21       1.3             23       1.4             79       1.3             89       1.4
merchant fees
Total revenues    356      21.7            351      21.9            1,341    22.0            1,399    22.1
Bad debt             55         3.4                 87         5.4                 196        3.2                 154        2.4
expense^(a)
Operations and
marketing            154        9.4                 145        9.0                 562        9.2                 550        8.7
expenses^(a)
Depreciation
and               3        0.2             4        0.2             13       0.2             17       0.3
amortization
Total expenses    212      12.9            236      14.7            771      12.6            721      11.4
EBIT                 144        8.8                 115        7.2                 570        9.3                 678        10.7
Interest
expense on
nonrecourse
debt
collateralized
by credit card    3                       17                      13                      72       
receivables
Segment profit   $ 141                    $ 98                     $ 557                    $ 606      
Average
receivables        $ 4,602                        $ 2,725                        $ 4,569                        $ 2,514
funded by
Target^(b)
Segment pretax    11.3  %                 14.3  %                 12.0  %                 24.1  %  
ROIC^(c)
                                                                                                                                        

Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.
^(a) The combination of bad debt expense and operations and marketing
expenses, less amounts the U.S. Retail Segment charges the U.S. Credit Card
Segment for loyalty programs, within the U.S. Credit Card Segment represent
credit card expenses on the Consolidated Statements of Operations. For the
three and twelve months ended February 2, 2013, fourth quarter bad debt
expense was replaced by net write-offs in this calculation. 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 $1,423 million for
the three and twelve months ended February 2, 2013, respectively, and $3,673
million and $3,801 million for the three and twelve months ended January 28,
2012, respectively, of receivables funded by nonrecourse debt collateralized
by credit card receivables.
^(c) ROIC is return on invested capital. This rate equals our segment profit
divided by average credit card receivables, at par, funded by Target,
expressed as an annualized rate. For the three and twelve months ended
February 2, 2013, the additional week in each period has been adjusted to
provide comparable results to the prior period.
^(d) As an annualized percentage of average credit card receivables, at par.
For the three and twelve months ended February 2, 2013, the additional week in
each period has been adjusted to provide comparable results to the prior
period.


Spread
Analysis -    Three Months Ended              Three Months Ended            Twelve Months Ended           Twelve Months Ended    
Total
Portfolio
                February 2, 2013                  January 28, 2012                February 2, 2013                January 28, 2012
                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            $   144       8.8%         ^(c)   $   115     7.2%         ^(c)   $   570     9.3%         ^(c)   $   678     10.7%        ^(c)
LIBOR^(a)                     0.2%                            0.3%                            0.2%                            0.2%
Spread to     $   141     8.5%        ^(c)  $   111    6.9%        ^(c)  $   555    9.1%        ^(c)  $   663    10.5%       ^(c)
LIBOR^(b)
                                                                                                                                           

Note: Numbers are individually rounded.
Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.
^(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.
For the three and twelve months ended February 2, 2013, the additional week in
each period has been adjusted to provide comparable results to the prior
period.



Receivables
Rollforward      Three Months Ended                        Twelve Months Ended
Analysis
                   February         January                    February          January     
                   2,                28,                        2,                 28,
(millions)       2013           2012       Change     2013            2012        Change
(unaudited)
Beginning
credit card        $ 5,836           $ 6,144      (5.0  ) %     $ 6,357            $ 6,843       (7.1  ) %
receivables,
at par
Charges at           2,152             1,750      23.0            6,294              5,098       23.5
Target
Charges at           1,221             1,306      (6.5  )         4,709              5,192       (9.3  )
third parties
Payments             (3,449 )          (3,077 )   12.1            (12,286 )          (11,653 )   5.4
Other             264           234      13.5       950            877       8.3   
Period-end
credit card      $ 6,024   ^(a)  $ 6,357    (5.2  ) %   $ 6,024    ^(a)  $ 6,357     (5.2  ) %
receivables,
at par
Average credit
card             $ 6,102        $ 6,398    (4.6  ) %   $ 5,992         $ 6,314     (5.1  ) %
receivables,
at par
Accounts with
three or more
payments (60+
days) past due
as a              2.7    %       3.3    %             2.7     %       3.3     %  
percentage of
period-end
credit card
receivables,
at par
Accounts with
four or more
payments (90+
days) past due
as a              1.9    %       2.3    %             1.9     %       2.3     %  
percentage of
period-end
credit card
receivables,
at par
                                                                            
Allowance for
Doubtful           Three Months Ended                           Twelve Months Ended
Accounts
                   February          January                    February           January
                   2,                28,                        2,                 28,
(millions)       2013           2012       Change     2013            2012        Change
(unaudited)
Allowance at
beginning of       $ 345             $ 431        (20.1 ) %     $ 430              $ 690         (37.7 ) %
period
Bad debt             55                87         (36.6 )         196                154         27.3
expense
Write-offs^(b)       (98    )          (124   )   (21.2 )         (424    )          (572    )   (25.8 )
Recoveries^(b)    33            36       (7.0  )     133            158       (15.2 )
Segment
allowance at     $ 335     ^(a)  $ 430      (22.0 ) %   $ 335      ^(a)  $ 430       (22.0 ) %
end of period
As a
percentage of
period-end        5.6    %       6.8    %             5.6     %       6.8     %  
credit card
receivables,
at par
Net write-offs
as an
annualized
percentage of     4.2    %       5.5    %             4.9     %       6.6     %  
average credit
card
receivables,
at par
                                                                                                         

^(a) We continue to recognize an allowance for doubtful accounts and bad debt
expense within our U.S. Credit Card Segment, which allows us to evaluate the
performance of the portfolio. The allowance for doubtful accounts is
eliminated in consolidation to present the receivables at the lower of cost
(par) or fair value. Period-end credit card receivables, at par, less the
segment allowance at the beginning of the three months ended February 2, 2013,
when the receivables were first classified as held for sale, plus the gain on
receivables held for sale of $161 million for the twelve months ended February
2, 2013 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.

Subject to reclassification


TARGET CORPORATION
                                                                                    
Canadian Segment

Canadian Segment     Three Months Ended                     Twelve Months Ended  
Results
                     February     January                    February     January
                     2,           28,                        2,           28,
(millions)         2013       2012      Change     2013       2012      Change  
(unaudited)
Sales                $  -         $  -        -        %     $  -         $  -        -        %
Cost of sales        -         -      -            -         -      -       
Gross margin            -            -        -                 -            -        -
SG&A                 118       20     478.8        272       74     268.7   
expenses^(a)
EBITDA                  (118  )      (20  )   478.8             (272  )      (74  )   268.7
Depreciation and     30        20     52.5         97        48     103.2   
amortization^(b)
EBIT               $  (148  )  $  (40  )  268.1   %   $  (369  )  $  (122 )  203.5   %
                                                                                               

Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.
^(a) SG&A expenses include start-up costs consisting primarily of
compensation, benefits and third-party service expenses.
^(b) Depreciation and amortization results from depreciation of capital lease
assets and leasehold interests. For the three and twelve months ended February
2, 2013, the lease payment obligation also gave rise to $20 million and $78
million of interest expense, respectively, compared with $19 million and $44
million for the three and twelve months ended January 28, 2012, respectively,
recorded in our Consolidated Statements of Operations.

Subject to reclassification


TARGET CORPORATION
                                                                             
Reconciliation of Non-GAAP Financial Measures

                   Three Months Ended                 Twelve Months Ended
                   February   January                 February     January
                   2,         28,                     2,           28,
(unaudited)      2013      2012      Change     2013       2012           Change
GAAP diluted
earnings per       $  1.47    $  1.45       0.9   %   $  4.52      $  4.28               5.6    %
share
Adjustments        0.18     0.04               0.24      0.13        
Adjusted
diluted          $  1.65   $  1.49    10.1  %  $  4.76    $  4.41          7.9    %
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 February
2, 2013
Segment profit     $  1,677   $  141      $ 1,817     $  (148  )   $  -               $  1,669
Other net
interest                                    181          20           -                  201
expense^(a)
Adjustment
related to
receivables                                -         -         4             4      
held for
sale^(b)
Earnings
before income                               1,636        (168  )      (4   )             1,464
taxes
Provision for
income                                     557       (51   )    (3   ) ^(e)      503    
taxes^(c)
Net earnings                              $ 1,079   $  (117  )  $  (1   )       $  961    
Diluted
earnings per                       $ 1.65    $  (0.18 )  $  -           $  1.47   
share^(d)
Three Months
Ended January
28, 2012
Segment profit     $  1,625   $  98       $ 1,723     $  (40   )   $  -               $  1,683
Other net
interest                                   169       19        87    ^(f)     275    
expense^(a)
Earnings
before income                               1,554        (59   )      (87  )             1,408
taxes
Provision for
income                                     545       (16   )    (102 ) ^(e)      427    
taxes^(c)
Net earnings                              $ 1,009   $  (43   )  $  15          $  981    
Diluted
earnings per                       $ 1.49    $  (0.06 )  $  0.02        $  1.45   
share^(d)
                                                                                      
Twelve Months
Ended February
2, 2013
Segment profit     $  5,019   $  557      $ 5,576     $  (369  )   $  -               $  5,206
Other net
interest                                    672          78           -                  749
expense^(a)
Adjustment
related to
receivables                                -         -         (152 )         (152   )
held for
sale^(b)
Earnings
before income                               4,904        (447  )      152                4,609
taxes
Provision for
income                                     1,744     (132  )    (3   ) ^(e)      1,610  
taxes^(c)
Net earnings                              $ 3,160   $  (315  )  $  155         $  2,999  
Diluted
earnings per                       $ 4.76    $  (0.48 )  $  0.23        $  4.52   
share^(d)
Twelve Months
Ended January
28, 2012
Segment profit     $  4,765   $  606      $ 5,371     $  (122  )   $  -               $  5,250
Other net
interest                                   663       44        87    ^(f)     794    
expense^(a)
Earnings
before income                               4,708        (166  )      (87  )             4,456
taxes
Provision for
income                                     1,690     (47   )    (117 ) ^(e)      1,527  
taxes^(c)
Net earnings                              $ 3,018   $  (119  )  $  30          $  2,929  
Diluted
earnings per                       $ 4.41    $  (0.17 )  $  0.04        $  4.28   
share^(d)
                                                                                                

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 adjustment related to receivables held for sale, favorable
resolution of various income tax matters and the loss on early retirement of
debt. 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.
Note: The three and twelve months ended February 2, 2013 consisted of 14 weeks
and 53 weeks, respectively, compared with 13 weeks and 52 weeks in the
comparable prior-year periods.
^(a) Represents interest expense, net of interest income, not included in U.S.
Credit Card segment profit. For the three and twelve months ended February 2,
2013, U.S. Credit Card segment profit included $3 million and $13 million of
interest expense on nonrecourse debt collateralized by credit card
receivables, respectively, compared with $17 million and $72 million in the
respective prior year periods. These amounts, along with other net interest
expense, equal consolidated GAAP net interest expense.
^(b) Represents the gain on receivables held for sale recorded in our
Consolidated Statements of Operations, plus the difference between U.S. Credit
Card Segment bad debt expense and net write-offs for the three months ended
February 2, 2013.
^(c) Taxes are allocated to our business segments based on income tax rates
applicable to the operations of the segment for the period.
^(d) For the three and twelve months ended February 2, 2013, average diluted
shares outstanding were 655.8 million and 663.3 million, respectively. For the
three and twelve months ended January 28, 2012, average diluted shares
outstanding were 675.0 million and 683.9 million, respectively.
^(e) Represents the effect of the resolution of income tax matters. The
results for the three and twelve months ended February 2, 2013 also include a
$(2) million and $55 million tax provision/(benefit) for the adjustment
related to receivables held for sale, respectively, while the results for the
three and twelve months ended January 28, 2012 include the tax effect of the
loss on early retirement of debt of $32 million in both periods.
^(f) Represents the loss on early retirement of debt.

Subject to reclassification

Contact:

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