EX-12 7 tgt-20140802xexhibit12.htm EXHIBIT
Exhibit (12)
TARGET CORPORATION
Computations of Ratios of Earnings to Fixed Charges for the
Six Months Ended August 2, 2014 and August 3, 2013
and for the Most Recent Five Fiscal Years

Ratio of Earnings to Fixed Charges | Six Months Ended |  | Fiscal Year Ended
(dollars in millions) | Aug 2, 2014 |  | Aug 3, 2013 |  |  | Feb 1, 2014 |  | Feb 2, 2013 |  | Jan 28, 2012 |  | Jan 29, 2011 |  | Jan 30, 2010 |
Earnings from continuing operations before income taxes | $ | 1,007 |  | $ | 1,739 |  |  | $ | 3,103 |  | $ | 4,609 |  | $ | 4,456 |  | $ | 4,495 |  | $ | 3,872 |
Capitalized interest, net | (5 | ) | (7 | ) |  | (14 | ) | (12 | ) | 5 |  | 2 |  | (9 | )
Adjusted earnings from continuing operations before income taxes | 1,002 |  | 1,732 |  |  | 3,089 |  | 4,597 |  | 4,461 |  | 4,497 |  | 3,863 |
Fixed charges: |  |  |  |  |  |  |  |
Interest expense (a) | 353 |  | 374 |  |  | 718 |  | 799 |  | 797 |  | 776 |  | 830 |
Interest portion of rental expense | 56 |  | 55 |  |  | 110 |  | 111 |  | 111 |  | 110 |  | 105 |
Total fixed charges | 409 |  | 429 |  |  | 828 |  | 910 |  | 908 |  | 886 |  | 935 |
Earnings from continuing operations before income taxes and fixed charges (b) | $ | 1,411 |  | $ | 2,161 |  |  | $ | 3,917 |  | $ | 5,507 |  | $ | 5,369 |  | $ | 5,383 |  | $ | 4,798 |
Ratio of earnings to fixed charges | 3.45 |  | 5.04 |  |  | 4.73 |  | 6.05 |  | 5.91 |  | 6.08 |  | 5.13 |

(a) Includes interest on debt and capital leases (including capitalized interest) and amortization of debt issuance costs. Excludes interest income, the loss on early retirement of debt and interest associated with uncertain tax positions, which is recorded within income tax expense.
(b) The six months ended August 2, 2014 and August 3, 2013, include the impact of a loss on early retirement of debt. The six months ended August 2, 2013 also includes the gain on sale of our U.S. credit card receivables portfolio.