Target 2007 Annual Report Download - page 35

In 2008, we expect to invest $4.5 billion to $4.7 billion in capital expenditures, including investments in
approximately 116 new stores, adding about 95 new locations, net of relocations and closings, and two
distribution centers that will open in 2008.
February 2, February 3,Number of Stores
2008 Opened Closed (a) 2007
Target general merchandise stores 1,381 85 15 1,311
SuperTarget stores 210 33 — 177
Total 1,591 118 15 1,488
Retail Square Feet (b)
(thousands)
Target general merchandise stores 170,858 11,621 1,569 160,806
SuperTarget stores 37,087 5,829 — 31,258
Total 207,945 17,450 1,569 192,064
(a) Includes 14 store relocations in the same trade area and 1 store closed without replacement.
(b) Reflects total square feet, less office, distribution center and vacant space.
Commitments and Contingencies
At February 2, 2008, 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) $ 16,726 $ 1,951 $ 3,487 $ 2,358 $ 8,930
Interest payments – long-term
debt (b) 12,314 922 1,619 1,299 8,474
Capital lease obligations 232 12 32 33 155
Operating leases (c) 3,694 239 360 252 2,843
Deferred compensation 662 176 148 125 213
Real estate obligations 1,078 856 220 2 —
Purchase obligations 663 351 303 9 —
Contractual cash obligations $ 35,369 $ 4,507 $ 6,169 $ 4,078 $ 20,615
(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. Includes $500 million of short-term
borrowings that are due in the first quarter of 2008.
(b) Includes payments on $2,400 million of floating rate debt secured by credit card receivables, $500 million of which matures in 2008,
$900 million of which matures in 2010, and $1,000 million of which matures in 12 monthly installments beginning in May 2012. These
payments are calculated assuming rates of approximately 3.3 percent, based on presumed LIBOR of 3.15 percent plus a spread, 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 20.
(c) Total contractual lease payments include $1,721 million of lease payments related to options to extend the lease term that are
reasonably assured of being exercised and also includes $98 million of legally binding minimum lease payments for stores opening
in 2008 or later. Refer to Note 21 for a further description of leases.
Note: Tax contingencies of $571 million, including interest and penalties, are not included in the table above because we are not
able to make reasonably reliable estimates of the period of cash settlement.
Real estate obligations include commitments for the purchase, construction or remodeling of real estate
and facilities. Purchase obligations include all legally binding contracts such as firm minimum commitments
for inventory purchases, merchandise royalties, purchases of equipment, marketing-related contracts,
software acquisition/license commitments and service contracts.
We issue inventory purchase orders in the normal course of business, which represent authorizations to
purchase that are cancelable by their terms. We do not consider purchase orders to be firm inventory
commitments; therefore, they are excluded from the table above. We also issue trade letters of credit in the
ordinary course of business, which are excluded from this table as these obligations are conditional on the
purchase order not being cancelled. If we choose to cancel a purchase order, we may be obligated to
reimburse the vendor for unrecoverable outlays incurred prior to cancellation.
17
PART II