Target 2013 Annual Report Download - page 53

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Insurance Coverage
To limit our exposure to Data Breach losses, we maintain $100 million of network-security insurance coverage, above
a $10 million deductible. This coverage and certain other insurance coverage may reduce our exposure. We will pursue
recoveries to the maximum extent available under the policies. As of February 1, 2014, we have recorded a $44 million
receivable for costs we believe are reimbursable and probable of recovery under our insurance coverage, which
partially offsets the $61 million of expense relating to the Data Breach.
Other Contingencies
We are exposed to other claims and litigation arising in the ordinary course of business and use various methods to
resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents.
We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and
estimable liabilities. We do not believe that any of these identified claims or litigation will be material to our results of
operations, cash flows or financial condition.
Commitments
Purchase obligations, which include all legally binding contracts such as firm commitments for inventory purchases,
merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments
and service contracts, were $1,317 million and $1,472 million at February 1, 2014 and February 2, 2013, respectively.
These purchase obligations are primarily due within three years and recorded as liabilities when inventory is received.
We issue inventory purchase orders, which represent authorizations to purchase that are cancelable by their terms.
We do not consider purchase orders to be firm inventory commitments. If we choose to cancel a purchase order, we
may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation. Real estate
obligations, which include commitments for the purchase, construction or remodeling of real estate and facilities, were
$449 million and $1,128 million at February 1, 2014 and February 2, 2013, respectively. These real estate obligations
are primarily due within one year, a portion of which are recorded as liabilities.
We issue letters of credit and surety bonds in the ordinary course of business. Trade letters of credit totaled $1,441
million and $1,539 million at February 1, 2014 and February 2, 2013, respectively, a portion of which are reflected in
accounts payable. Standby letters of credit and surety bonds, relating primarily to insurance and regulatory
requirements, totaled $500 million and $486 million at February 1, 2014 and February 2, 2013, respectively.
18. Notes Payable and Long-Term Debt
At February 1, 2014, the carrying value and maturities of our debt portfolio were as follows:
Debt Maturities February 1, 2014
(dollars in millions) Rate (a) Balance
Due 2014-2018 4.5% $ 4,232
Due 2019-2023 4.0 2,215
Due 2024-2028 6.7 252
Due 2029-2033 6.5 769
Due 2034-2038 6.8 2,740
Due 2039-2043 4.0 1,470
Total notes and debentures 5.1 11,678
Swap valuation adjustments 53
Capital lease obligations 1,971
Less: Amounts due within one year (1,080)
Long-term debt $ 12,622
(a) Reflects the weighted average stated interest rate as of year-end.