Target 2014 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2014 Target annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

Future Minimum Lease Payments
(millions) Operating Leases (a) Capital Leases (b) Rent Income Total
2015 $ 186 $ 123 $ (6) $ 303
2016 178 94 (5) 267
2017 170 58 (5) 223
2018 165 55 (4) 216
2019 154 54 (3) 205
After 2019 2,974 1,019 (13) 3,980
Total future minimum lease payments $ 3,827 $ 1,403 $ (36) $ 5,194
Less: Interest (c) 614
Present value of future minimum capital
lease payments (d) $ 789
Note: Minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. Minimum lease payments
also exclude payments to landlords for fixed purchase options which we believe are reasonably assured of being exercised.
(a) Total
contractual lease payments include $2,046 million related to options to extend lease terms that are reasonably assured of being
exercised and also includes $67 million of legally binding minimum lease payments for stores that are expected to open in 2015 or later.
(b) Capital
lease payments include $612 million related to options to extend lease terms that are reasonably assured of being exercised and
also includes $59 million of legally binding minimum lease payments for stores that are expected to open in 2015 or later. Capital leases
also include $41 million of legally binding payments for distribution centers opening in 2015.
(c) Calculated using the interest rate at inception for each lease.
(d) Includes the current portion of $63 million.
21. Income Taxes
Earnings from continuing operations before income taxes were $3,653 million, $4,121 million and $5,056 million during
2014, 2013 and 2012, including $261 million, $196 million and $161 million earned by our foreign entities subject to
tax outside of the U.S.
Tax Rate Reconciliation – Continuing Operations
Federal statutory rate
State income taxes, net of the federal tax benefit
International
Other
Effective tax rate
2014
35.0%
2.2
(2.3)
(1.9)
33.0%
2013
35.0%
2.4
(1.2)
(1.6)
34.6%
2012
35.0%
1.8
(1.0)
(1.4)
34.4%
Provision for Income Taxes
(millions)
Current:
Federal
State
International
Total current
Deferred:
Federal
State
International
Total deferred
Total provision
$
$
2014
1,074 $
116
7
1,197
(2)
10
(1)
7
1,204 $
2013
1,206 $
150
13
1,369
56
—
2
58
1,427 $
2012
1,521
144
9
1,674
64
6
(3)
67
1,741
50