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 20123.
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.
About Target
Minneapolis-based Target Corporation 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.
Target