Target Corporation (NYSE:TGT) announced today that it has completed the sale of its entire consumer credit card portfolio to TD Bank Group (TSX and NYSE: TD) for $5.7 billion, the gross value of the outstanding receivables (“par”) at the time of closing. As previously announced, the two companies have entered into a seven-year program agreement under which TD will also underwrite, fund and own future Target Credit Card and Target Visa receivables in the United States. Under the program agreement, TD will control risk management policies and oversee regulatory compliance and Target will continue to perform account servicing functions. "We’re pleased that we’ve completed the sale of our credit card portfolio," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation. "We look forward to working with TD Bank Group, a premier financial institution, to provide innovative financial products to our guests and profitably grow the portfolio over time." Under the seven-year program agreement, which applies to Target’s U.S. credit card operations, Target will maintain the current deep integration between its financial services operations and its retail operations. The agreement does not have any impact on Target’s 5% REDcard Rewards program. Target team members will continue to provide all servicing for Target Credit Card and Target Visa accounts. The portfolio sale and program agreement are designed to have minimal impact on Target's current cardholders, guests and the Target team members who support financial products and services. Accounting Considerations, Earnings Impacts and Deployment of ProceedsAs previously announced, Target’s fiscal 2012 GAAP earnings per share reflected a pre-tax gain of $161 million related to the accounting treatment of the consumer credit card receivables as “held for sale” assets. In addition, in first quarter 2013 Target estimates it will recognize an additional pre-tax gain of approximately $393 million on the sale of its portfolio. At the time of the company’s October 23, 2012 announcement of the sale agreement with TD, Target posted details on the accounting aspects of this transaction on its investor relations website, available at www.Target.com/investors. Target expects to deploy proceeds from the sale in a manner that will preserve its strong investment-grade credit ratings. Specifically, the company expects to apply approximately 90 percent of net transaction proceeds to reduce the company’s net debt position, with the remainder applied to share repurchase over time. Concurrent with this release Target announced that it has commenced tender offers to apply cash proceeds of up to $1.2 billion to retire certain long-term debt securities.