Target 2013 Annual Report Download - page 29

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24
Other Performance Factors
Consolidated Selling, General and Administrative Expenses
In addition to our selling, general and administrative expenses recorded within our segments, we recorded certain
other expenses during 2013. These expenses included a $23 million workforce-reduction charge primarily related to
severance and benefits costs, a $22 million charge related to part-time team member health benefit changes, $19
million in impairment charges related to certain parcels of undeveloped land, and $17 million of Data Breach-related
costs, net of expected insurance proceeds. Additional information about these items is provided within the
Reconciliation of Non-GAAP Financial Measures to GAAP Measures on page 25.
Net Interest Expense
Net interest expense was $1,126 million in 2013. This increase of 47.7 percent, or $364 million, from 2012 was due
to a $445 million loss on early retirement of debt in 2013, partially offset by the benefit from 2013 debt reductions.
Net interest expense was $762 million for 2012. This decrease of 12.0 percent, or $104 million, from 2011 was primarily
due to an $87 million loss on early retirement of debt in 2011.
Provision for Income Taxes
Our effective income tax rate increased to 36.5 percent in 2013, from 34.9 percent in 2012, which was driven by the
net effect of increased losses related to Canadian operations combined with a lower year-over-year benefit from the
favorable resolution of various income tax matters. The resolution of various income tax matters reduced tax expense
by $16 million and $58 million in 2013 and 2012, respectively. A tax rate reconciliation is provided in Note 21 to our
Consolidated Financial Statements.
Our effective income tax rate increased to 34.9 percent in 2012, from 34.3 percent in 2011, primarily due to a lower
benefit associated with the favorable resolution of various income tax matters, combined with the effect of increased
losses related to Canadian operations. Various income tax matters were resolved in 2012 and 2011 which reduced
tax expense by $58 million and $85 million, respectively.