Target 2015 Annual Report Download - page 27

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Discontinued Operations
On January 15, 2015, Target Canada Co. and certain other wholly owned subsidiaries of Target (collectively Canada
Subsidiaries), comprising substantially all of our former Canadian operations and our former Canadian Segment, filed
for protection (the Filing) under the Companies' Creditors Arrangement Act (CCAA) with the Ontario Superior Court of
Justice in Toronto (the Court) and were deconsolidated. As a result, we recorded a pretax impairment loss on
deconsolidation and other charges, collectively totaling $5.1 billion. The Canada Subsidiaries are executing a liquidation
through the CCAA process.
Income from discontinued operations, net of tax, was $42 million during 2015.
In the fourth quarter of 2015, we reached settlements with two entities that controlled guaranteed leases representing
approximately 46 percent of the recorded accrual at that time. Under the settlement terms, these entities have
subrogated to us their claims against the Canada Subsidiaries. The settlement amounts were materially consistent
with our previously recorded accruals.
As part of a March 2016 settlement between the Canada Subsidiaries and all of their former landlords, we have agreed
to subordinate a portion of our intercompany claims and make certain cash contributions to the estate in exchange for
a full release from obligations under guarantees of certain leases. This agreement remains subject to creditor and
Court approval. The financial impact of this agreement is materially consistent with amounts recorded in our financial
statements.
For more information about our Canada exit, see Note 7 of the Financial Statements.
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