Target 2006 Annual Report Download - page 35

Spending for new stores, store expansions and remodels, and information systems hardware and
software, distribution capacity and other infrastructure to support store growth as a percentage of total
capital expenditures are shown below for each of the last three fiscal years.
Capital Expenditures
Percentage of Capital Expenditures
2006 2005 2004
New stores 61% 60% 64%
Remodels and expansions 12 12 12
Information technology, distribution and other 27 28 24
Total 100% 100% 100%
In 2007, we expect to invest $4.2 billion to $4.4 billion primarily in new stores, store expansions and
remodels, as well as information systems hardware and software, distribution capacity and other
infrastructure to support our planned growth. Our estimated 2007 store opening program reflects net
square footage growth of approximately 8 percent, including 115 to 120 new stores partially offset by
closings and relocations. We also expect to remodel approximately 40 to 45 stores, most of which will be
expanded. In addition, we expect to open two distribution centers in 2007.
Number of Stores
February 3, January 28,
2007 Opened Closed (a) 2006
Target general merchandise stores 1,311 94 22 1,239
SuperTarget stores 177 19 — 158
Total 1,488 113 22 1,397
Retail Square Feet (b)
(thousands)
Target general merchandise stores 160,806 12,860 2,372 150,318
SuperTarget stores 31,258 3,316 — 27,942
Total 192,064 16,176 2,372 178,260
(a) Includes 18 store relocations in the same trade area and four stores closed without replacement.
(b) Reflects total square feet, less office, distribution center and vacant space.
Commitments and Contingencies
At February 3, 2007, our contractual obligations were as follows:
Contractual Obligations
Payments Due by Period
Less than 1-3 3-5 After 5
(millions) Total 1 Year Years Years Years
Long-term debt (a) $ 9,897 $ 1,355 $ 2,268 $ 2,343 $ 3,931
Interest payments – long-term debt (b) 4,165 547 899 625 2,094
Capital lease obligations 249 15 30 32 172
Operating leases (c) 3,325 142 266 235 2,682
Deferred compensation 691 46 205 98 342
Real estate obligations 1,106 1,106 — — —
Purchase obligations 1,613 483 605 290 235
Contractual cash obligations $ 21,046 $ 3,694 $ 4,273 $ 3,623 $ 9,456
(a) Required principal payments only. Excludes Statement of Financial Accounting Standards No. 133, ‘‘Accounting for Derivative Instruments and
Hedging Activities,’’ fair market value adjustments recorded in long-term debt.
(b) Includes payments on $1,750 million of floating rate long-term debt secured by credit card receivables, $750 million of which matures in
2007, $900 million of which matures in 2010, and $100 million of which matures in 12 monthly installments beginning in October 2007.
These payments are calculated assuming rates of approximately 5.5 percent, based on a spread over presumed LIBOR of 5.35%, for each
year outstanding. Excludes payments received or made related to interest rate swaps. The fair value of outstanding interest rate swaps has
been provided in Note 21.
(c) Total contractual lease payments include $1,631 million related to certain options to extend the lease term that are reasonably assured of
being exercised and also includes $188 million of legally binding minimum lease payments for stores opening in 2007 or later. Refer to Note
22 for further description of leases.
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PART II