Target 2015 Annual Report Download - page 35

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range of loss and disclose the estimated range. We do not record liabilities for reasonably possible loss contingencies,
but do disclose a range of reasonably possible losses if they are material and we are able to estimate such a range.
If we cannot provide a range of reasonably possible losses, we explain the factors that prevent us from determining
such a range. Historically, adjustments to our estimates have not been material.
We believe the accruals recorded in our consolidated financial statements properly reflect loss exposures that are both
probable and reasonably estimable. With the exception of Canada Exit-related loss exposures, we do not believe any
of the currently identified claims or litigation may materially affect our results of operations, cash flows, or financial
condition. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable
ruling were to occur, it may cause a material adverse impact on the results of operations, cash flows, or financial
condition for the period in which the ruling occurs, or future periods. Refer to Note 7 of the Financial Statements for
further information on the Canada Exit-related contingencies, respectively.
New Accounting Pronouncements
In February 2016, the FASB issued ASU No. 2016-02, Leases, to require organizations that lease assets to recognize
the rights and obligations created by those leases on the balance sheet. The new standard is effective in 2019, with
early adoption permitted.€ We are currently evaluating the effect the new standard will have on our financial statements.
We do not expect that any other recently issued accounting pronouncements will have a material effect on our financial
statements.
Forward-Looking Statements
This report contains forward-looking statements, which are based on our current assumptions and expectations. These
statements are typically accompanied by the words "expect," "may," "could," "believe," "would," "might," "anticipates,"
or words of similar import. The principal forward-looking statements in this report include: our financial performance,
statements regarding the adequacy of and costs associated with our sources of liquidity, the expected impact of the
pharmacies and clinics sale transaction on our financial performance and the anticipated use of proceeds, the continued
execution of our share repurchase program, our expected capital expenditures, the impact of changes in the expected
effective income tax rate on net income, the expected compliance with debt covenants, the expected impact of new
accounting pronouncements, our intentions regarding future dividends, contributions and payments related to our
pension plan, the expected returns on pension plan assets, the timing and financial impact of discontinuing
postretirement health care benefits that were offered to team members upon early retirement and prior to Medicare
eligibility, the expected timing and recognition of compensation expenses, the effects of macroeconomic conditions,
the adequacy of our reserves for general liability, workers' compensation and property loss, the expected outcome of,
and adequacy of our reserves for investigations, inquiries, claims and litigation, including those related to the 2013
data breach and discontinuing our Canadian operations, expected changes to our contractual obligations and liabilities,
the expected ability to recognize deferred tax assets and liabilities and the timing of such recognition, the process,
timing and effects of discontinuing our Canadian operations, the resolution of tax matters, changes in our assumptions
and expectations, and the expected benefits and timing of cash disbursements related to restructuring activities.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although we believe there
is a reasonable basis for the forward-looking statements, our actual results could be materially different. The most
important factors which could cause our actual results to differ from our forward-looking statements are set forth on
our description of risk factors in Item€1A to this Form€10-K, which should be read in conjunction with the forward-looking
statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake
any obligation to update any forward-looking statement.
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