In the fourth quarter with the decisions we’re announcing today, we expect to recognize approximately $5.4 billion of pretax losses in continued– in discontinued operations. Driven primarily by the write down of the Corporation’s investment in Target Canada. Along with the costs associated with exit or disposal activities and quarter-to-date Canadian segment operating losses prior to today’s filings. While these estimates represent the vast majority of the total expected pretax exit cost for the Corporation, we currently expect some additional cost in 2015 in a range around $275 million pretax. However, it is very important to note that the vast majority of our exit costs are non-cash. The cash cost of exit for Target Corporation are expected to be in the range of $500 million to $600 million, the majority of which will occur in FY15.
For perspective, these exit cost are comparable to a single year of the Canada’s operating cash needs given current performance. Also, importantly, we have sufficient resources to accommodate these cash costs given cash on hand and the ongoing cash generation of our US operations. Over the past 18 months many of you have spoken with me about the outsized impact the Canadian segment has had on our capital structure and our ability to return cash to shareholders. As we mentioned in the release this morning, the exit from Canada is expected to increase Target’s earnings in FY15 and our cash flow beginning in 2016.
So while our credit metrics are not yet in a position to allow us to resume share repurchase, this announcement moves our metrics in the right direction and will allow Target to resume share repurchase much more quickly than if we had continued to operate in Canada. I want to pause
here and reiterate our commitment to maintaining our current investment grade credit ratings, meaning we will continue to manage the timing and magnitude of any future repurchase activity with a goal of maintaining those ratings. Before we concluded, I want to provide a little more color on our outlook for fourth-quarter performance of our US business. As we outlined in our third-quarter conference call, we saw very strong results in November which continued through the Black Friday weekend.
Consistent with our holiday season experience for more than a decade, we saw a lull in traffic and sales for the first three weeks of December. After which we saw a strong surge in traffic and sales in the days leading up to and after Christmas. Combined with the benefit of robust digital sales, which we now expect to exceed 40% for the quarter, we’re expecting to report fourth-quarter US comparable sales growth of around 3%, driven primarily by traffic growth and better than our prior guidance of about 2%. With these incremental sales, we’re seeing better-than-expected profits as well. And we’re now expecting adjusted EPS reflecting results from continuing operations of $1.43 to $1.47 which is about $0.06 higher than our expectations for the US segment performance at the beginning of the quarter.
We began 2014 with the daunting task of working to help our US business recover from the devastating impact of the data breach. A little more than a year later, it’s clear that our US business has fully healed from those dark days. But that is not enough and we’re not yet where we need to be in the US. With today’s decisions we can focus all of our resources to go beyond healing the US business and continue our work to make it stronger. As Brian mentioned, we have great assets in the US including a strong brand, great stores, loyal guests and an outstanding team. Over the next several years, we will build capabilities on top of that foundation to enable Target to become a leading Omni channel retailer and fully recapture our merchandising authority in signature categories. With that we’ll conclude today’s prepared remarks. Now Brian and I will be happy to respond to your questions.
Operator
At this time, if you would like to ask a question, please press *1 on your telephone keypad. Again that is *1 for questions. We will pause for just a moment to compile the Q&A roster.
Our first question comes from the line of Matt Nemer.
