Target 2007 Annual Report Download - page 50

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11. Other Current Assets
Other Current Assets February 2, February 3,
(millions) 2008 2007
Deferred taxes $ 556 $ 427
Vendor income receivable 244 285
Other receivables (a) 353 278
Other 469 455
Total $1,622 $1,445
(a) Other receivables relate primarily to pharmacy receivables and merchandise sourcing services provided to third parties.
12. Property and Equipment
Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is computed
using the straight-line method over estimated useful lives or lease term if shorter. We amortize leasehold
improvements purchased after the beginning of the initial lease term over the shorter of the assets’ useful lives
or a term that includes the original lease term plus any renewals that are reasonably assured at the date the
leasehold improvements are acquired. Depreciation expense for 2007, 2006 and 2005 was $1,644 million,
$1,509 million and $1,384 million, respectively. For income tax purposes, accelerated depreciation methods
are generally used. Repair and maintenance costs are expensed as incurred and were $592 million,
$532 million and $474 million in 2007, 2006 and 2005, respectively. Pre-opening costs of stores and other
facilities, including supplies, payroll and other start-up costs for store and other facility openings, are
expensed as incurred.
Estimated useful lives by major asset category are as follows:
Asset Life (in years)
Buildings and improvements 8-39
Fixtures and equipment 3-15
Computer hardware and software 4
Long-lived assets are reviewed for impairment annually and also when events or changes in
circumstances indicate that the asset’s carrying value may not be recoverable. No material impairments were
recorded in 2007, 2006 or 2005 as a result of the tests performed.
13. Other Noncurrent Assets
Other Noncurrent Assets February 2, February 3,
(millions) 2008 2007
Cash value of life insurance (a) $ 578 $ 559
Prepaid pension expense 394 325
Interest rate swaps (b) 215 23
Goodwill and intangible assets 208 212
Other 164 93
Total $1,559 $1,212
(a) Company-owned life insurance policies on approximately 4,000 team members who are designated highly-compensated under the
Internal Revenue Code and have given their consent to be insured.
(b) See Notes 20 and 29 for additional information relating to our interest rate swaps.
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