Target 2013 Annual Report Download - page 51

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We use the straight-line method to amortize leasehold acquisition costs primarily over 9 to 39 years and other definite-
lived intangibles over 3 to 15 years. The weighted average life of leasehold acquisition costs and other intangible
assets was 26 years and 7 years, respectively, at February 1, 2014. Amortization expense was $25 million, $22 million,
and $24 million in 2013, 2012 and 2011, respectively.
Estimated Amortization Expense
(millions) 2014 2015 2016 2017 2018
Amortization expense $ 27 $ 25 $ 22 $ 16 $ 11
15. Accounts Payable
At February 1, 2014 and February 2, 2013, we reclassified book overdrafts of $733 million and $564 million, respectively,
to accounts payable and $81 million and $82 million to accrued and other current liabilities.
16. Accrued and Other Current Liabilities
Accrued and Other Current Liabilities
(millions) February 1, 2014 February 2, 2013
Wages and benefits $ 887 $ 938
Real estate, sales and other taxes payable 669 624
Gift card liability (a) 521 503
Dividends payable 272 232
Project costs accrual 256 347
Straight-line rent accrual (b) 248 235
Income tax payable 221 272
Workers' compensation and general liability (c) 152 160
Interest payable 85 91
Other 623 579
Total $ 3,934 $ 3,981
(a) Gift card liability represents the amount of unredeemed gift cards, net of estimated breakage.
(b) Straight-line rent accrual represents the amount of rent expense recorded that exceeds cash payments remitted in connection with operating
leases.
(c) See footnote (a) to the Other Noncurrent Liabilities table in Note 22 for additional detail.
17. Commitments and Contingencies
Data Breach
In the fourth quarter of 2013, we experienced a data breach in which an intruder stole certain payment card and other
guest information from our network (the Data Breach). Based on our investigation to date, we believe that the intruder
accessed and stole payment card data from approximately 40 million credit and debit card accounts of guests who
shopped at our U.S. stores between November 27 and December 15, 2013, through malware installed on our point-
of-sale system in our U.S. stores. On December 15, we removed the malware from virtually all registers in our U.S.
stores. Payment card data used in transactions made by 56 additional guests in the period between December 16 and
December 17 was stolen prior to our disabling malware on one additional register that was disconnected from our
system when we completed the initial malware removal on December 15. In addition, the intruder stole certain guest
information, including names, mailing addresses, phone numbers or email addresses, for up to 70 million individuals.
Our investigation of the matter is ongoing, and we are supporting law enforcement efforts to identify the responsible
parties.
Expenses Incurred and Amounts Accrued
In the fourth quarter of 2013, we recorded $61 million of pretax Data Breach-related expenses, and expected insurance
proceeds of $44 million, for net expenses of $17 million ($11 million after tax), or $0.02 per diluted share. These
expenses were included in our Consolidated Statements of Operations as Selling, General and Administrative Expenses