Target 2014 Annual Report Download - page 52

Debt Maturities January 31, 2015
(dollars in millions) Rate (a) Balance
Due 2015-2019 4.9% $ 4,230
Due 2020-2024 3.8 3,209
Due 2025-2029 6.7 252
Due 2030-2034 6.5 770
Due 2035-2039 6.7 2,014
Due 2040-2044 4.0 1,471
Total notes and debentures 5.0 11,946
Swap valuation adjustments 61
Capital lease obligations 789
Less: Amounts due within one year (91)
Long-term debt $ 12,705
(a) Reflects the weighted average stated interest rate as of year-end.
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 $2,411 million and $1,285 million at January 31, 2015 and February 1, 2014, 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
$243 million and $358 million at January 31, 2015 and February 1, 2014, 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 $1,447
million and $1,420 million at January 31, 2015 and February 1, 2014, 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 $459 million and $486 million at January 31, 2015 and February 1, 2014, respectively.
18. Notes Payable and Long-Term Debt
At January 31, 2015, the carrying value and maturities of our debt portfolio were as follows:
Required Principal Payments
(millions) 2015 2016 2017 2018 2019
Total required principal payments $ 27 $ 751 $ 2,251 $ 201 $ 1,001
In June 2014, we issued $1 billion of unsecured fixed rate debt at 2.3% that matures in June 2019 and $1 billion of
unsecured fixed rate debt at 3.5% that matures in July 2024. We used proceeds from these issuances to repurchase
$725 million of debt before its maturity at a market value of $1 billion, and for general corporate purposes including
the payment of $1 billion of debt maturities. We recognized a loss of $285 million on the early retirement, which was
recorded in net interest expense in our Consolidated Statements of Operations.
Concurrent with the sale of our U.S. consumer credit card receivables portfolio, we repaid $1.5 billion of nonrecourse
debt collateralized by credit card receivables (the 2006/2007 Series Variable Funding Certificate). We also used $1.4
billion of proceeds from the transaction to repurchase, at market value, an additional $970 million of debt before its
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