Target 2012 Annual Report Download - page 69

We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S.
Internal Revenue Service has completed exams on the U.S. federal income tax returns for years 2010 and prior. With
few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities
for years before 2003.
Reconciliation of Liability for Unrecognized Tax Benefits
(millions) 2012 2011 2010
Balance at beginning of period $236 $ 302 $ 452
Additions based on tax positions related to the current year 10 12 16
Additions for tax positions of prior years 19 31 68
Reductions for tax positions of prior years (42) (101) (222)
Settlements (7) (8) (12)
Balance at end of period $216 $ 236 $ 302
If we were to prevail on all unrecognized tax benefits recorded, $142 million of the $216 million reserve would
benefit the effective tax rate. In addition, the reversal of accrued penalties and interest would also benefit the
effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax
expense. During the years ended February 2, 2013, January 28, 2012 and January 29, 2011, we recorded a benefit
from the reversal of accrued penalties and interest of $16 million, $12 million and $28 million, respectively. We had
accrued for the payment of interest and penalties of $64 million, $82 million and $95 million at February 2, 2013,
January 28, 2012 and January 29, 2011, respectively.
It is reasonably possible that the amount of the unrecognized tax benefits with respect to our other unrecognized
tax positions will increase or decrease during the next twelve months; however, an estimate of the amount or range
of the change cannot be made at this time.
24. Other Noncurrent Liabilities
Other Noncurrent Liabilities February 2, January 28,
(millions) 2013 2012
Workers’ compensation and general liability (a) $ 467 $ 482
Deferred compensation 479 421
Income tax 180 224
Pension and postretirement health care benefits 170 225
Other 313 282
Total $1,609 $1,634
(a) We retain a substantial portion of the risk related to general liability and workers’ compensation claims. Liabilities associated with these
losses include estimates of both claims filed and losses incurred but not yet reported. We estimate our ultimate cost based on analysis of
historical data and actuarial estimates. General liability and workers’ compensation liabilities are recorded at our estimate of their net
present value.
25. Share Repurchase
We repurchase shares primarily through open market transactions under a $5 billion share repurchase program
authorized by our Board of Directors in January 2012. During the first quarter of 2012, we completed a $10 billion
share repurchase program that was authorized by our Board of Directors in November 2007.
Share Repurchases
(millions, except per share data) 2012 2011 2010
Total number of shares purchased 32.2 37.2 47.8
Average price paid per share $58.96 $50.89 $52.44
Total investment $1,900 $1,894 $2,508
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PART II