Second quarter 2012 EBIT was $(69) 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 9 cents in second quarter 2012.1

Interest Expense and Taxes

Net interest expense for the quarter was $184 million, including $19 million of interest on capitalized leases related to Target’s Canadian market entry. Net interest expense was $191 million in second quarter 2011.

The company’s effective income tax rate was 34.3 percent in second quarter 2012, including the favorable resolution of various income tax matters which benefited second quarter EPS by approximately 3 cents.

Capital Returned to Shareholders

In second quarter 2012, the company repurchased approximately 9.6 million shares of its common stock at an average price of $57.09, for a total investment of $549 million. The company also paid dividends of $198 million during the quarter.

Minneapolis-based Target Corporation serves guests at 1,772 stores across the United States and at Target.com.

Target Corp