Target 2006 Annual Report Download - page 25

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The following table summarizes the number of owned or leased stores and distribution centers at
February 3, 2007:
Distribution
Stores Centers
Owned 1,260 25
Leased 71 1
Combined (a) 157 3
Total 1,488 29 (b)
(a) Properties within the ‘‘combined’’ category are primarily owned buildings on leased land.
(b) The 29 distribution centers have a total of 41,460 thousand square feet.
We own our corporate headquarters buildings located in Minneapolis, Minnesota, and we lease and
own additional office space elsewhere in the United States. Our international merchandise sourcing
operations headquartered in New York, New York, have 39 office locations in 27 countries, all of which are
leased. We also lease office space in Bangalore, India, where we operate various support functions.
For additional information on our properties see also: Capital Expenditures section in Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations; Note 13 and
Note 22 of the Notes to Consolidated Financial Statements in Item 8, Financial Statements and
Supplementary Data.
Item 3. Legal Proceedings.
SEC Rule S-K Item 103 requires that companies disclose environmental legal proceedings involving a
governmental authority when such proceedings involve potential monetary sanctions of $100,000 or more.
We are a party to two administrative actions by governmental authorities involving environmental matters,
each of which may involve potential monetary sanctions in excess of $100,000. The allegations, both made
by the California Environmental Protection Agency Air Resources Board, each involve a non-food product
we formerly sold that contained levels of a volatile organic compound in excess of permissible levels. The
first allegation was made in March 2006, and we expect the sanctions for this matter will not exceed
$200,000. The second allegation was made in April 2006, and we expect the sanctions for this matter will
not exceed $500,000, for which the vendor is indemnifying Target. We previously reported an allegation
made by the United States Environmental Protection Agency in September 2005 that a product we formerly
sold contained a prohibited substance. This matter was settled in January 2007 with a payment of
$120,000. For description of other legal proceedings see Note 18.
The American Jobs Creation Act of 2004 requires SEC registrants to disclose if they have been required
to pay certain penalties for failing to disclose to the Internal Revenue Service their participation in listed
transactions. We have not been required to pay any of the penalties set forth in Section 6707A(e)(2) of the
Internal Revenue Code.
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable.
7
PART I