Target 2012 Annual Report Download - page 47

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4MAR200909320639 11MAR201319003653
Item 8. Financial Statements and Supplementary Data
Report of Management on the Consolidated Financial Statements
Management is responsible for the consistency, integrity and presentation of the information in the Annual Report. The
consolidated financial statements and other information presented in this Annual Report have been prepared in accordance with
accounting principles generally accepted in the United States and include necessary judgments and estimates by management.
To fulfill our responsibility, we maintain comprehensive systems of internal control designed to provide reasonable assurance
that assets are safeguarded and transactions are executed in accordance with established procedures. The concept of
reasonable assurance is based upon recognition that the cost of the controls should not exceed the benefit derived. We believe
our systems of internal control provide this reasonable assurance.
The Board of Directors exercised its oversight role with respect to the Corporation’s systems of internal control primarily through
its Audit Committee, which is comprised of independent directors. The Committee oversees the Corporation’s systems of
internal control, accounting practices, financial reporting and audits to assess whether their quality, integrity and objectivity are
sufficient to protect shareholders’ investments.
In addition, our consolidated financial statements have been audited by Ernst & Young LLP, independent registered public
accounting firm, whose report also appears on this page.
Gregg W. Steinhafel John J. Mulligan
Chief Executive Officer and President Executive Vice President and
March 20, 2013 Chief Financial Officer
Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements
The Board of Directors and Shareholders
Target Corporation
We have audited the accompanying consolidated statements of financial position of Target Corporation and subsidiaries (the
Corporation) as of February 2, 2013 and January 28, 2012, and the related consolidated statements of operations,
comprehensive income, cash flows, and shareholders’ investment for each of the three years in the period ended February 2,
2013. Our audits also included the financial statement schedule listed in Item 15(a). These financial statements and schedule are
the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these financial statements
and schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial
position of Target Corporation and subsidiaries at February 2, 2013 and January 28, 2012, and the consolidated results of their
operations and their cash flows for each of the three years in the period ended February 2, 2013, in conformity with U.S. generally
accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the
basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
Corporation’s internal control over financial reporting as of February 2, 2013, based on criteria established in Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
March 20, 2013, expressed an unqualified opinion thereon.
Minneapolis, Minnesota
March 20, 2013
31
PART II