Business Segment Results	2012(a)										2011									2010


(millions)	U.S. Retail		U.S. Credit Card		Canadian			Total			U.S. Retail		U.S. Credit Card		Canadian			Total		U.S. Retail		U.S. Credit Card		Canadian		Total

Sales/Credit card revenues	$	71,960	$	1,341	$	—		$	73,301		$	68,466	$	1,399	$	—		$	69,865	$	65,786	$	1,604	$	—	$	67,390
Cost of sales		50,568		—		—			50,568			47,860		—		—			47,860		45,725		—		—		45,725
Bad debt expense (b)		—		196		—			196			—		154		—			154		—		528		—		528
Selling, general and administrative/Operations and marketing expenses (b)(c)		14,342		562		272			15,176			13,774		550		74			14,398		13,367		433		—		13,801
Depreciation and amortization		2,031		13		97			2,142			2,067		17		48			2,131		2,065		19		—		2,084

Segment EBIT (d)		5,019		570		(369	)		5,219			4,765		678		(122	)		5,322		4,629		624		—		5,252
Interest expense on nonrecourse debt collateralized by credit card receivables (e)		—		13		—			13			—		72		—			72		—		83		—		83

Segment profit/(loss)	$	5,019	$	557	$	(369	)	$	5,206		$	4,765	$	606	$	(122	)	$	5,250	$	4,629	$	541	$	—	$	5,169
Unallocated (income) and expenses:
Other net interest expense (e)									749										794								674
Adjustment related to receivables held for sale (f)									(152	)									—								—

Earnings before income taxes								$	4,609									$	4,456							$	4,495

Note: The sum of the segment amounts may not equal the total amounts due to rounding.

(a): Consisted of 53 weeks.
(b): The combination of bad debt expense and operations and marketing expenses, less amounts the U.S. Retail Segment charges the U.S. Credit Card Segment for loyalty programs, within the U.S. Credit Card Segment represent credit card expenses on the Consolidated Statements of Operations. For the fourth quarter of 2012, bad debt expense was replaced by net write-offs in this calculation.
(c): Effective with the October 2010 nationwide launch of our new 5% REDcard Rewards loyalty program, we changed the formula under which the U.S. Retail Segment charges the U.S. Credit Card Segment to better align with the attributes of the new program. Loyalty program charges were $300 million, $258 million and $102 million in 2012, 2011 and 2010, respectively. In all periods these amounts were recorded as reductions to SG&A expenses within the U.S. Retail Segment and increases to operations and marketing expenses within the U.S. Credit Card Segment.
(d): The combination of Segment EBIT and the adjustment related to receivables held for sale represents earnings before interest expense and income taxes on the Consolidated Statements of Operations.
(e): The combination of interest expense on nonrecourse debt collateralized by credit card receivables and other net interest expense represents net interest expense on the Consolidated Statements of Operations.
(f): Represents the gain on receivables held for sale recorded in our Consolidated Statements of Operations, plus the difference between U.S. Credit Card Segment bad debt expense and net write-offs for the fourth quarter of 2012.

Total Assets by Segment (millions)	February 2, 2013		January 28, 2012



U.S. Retail	$	37,404	$	37,108
U.S. Credit Card		5,885		6,135
Canadian		4,722		3,387

Total segment assets	$	48,011	$	46,630
Unallocated assets (a)		152		—

Total assets	$	48,163	$	46,630

(a): Represents the net adjustment to eliminate our allowance for doubtful accounts and record our credit card receivables at lower of cost (par) or fair value