Target 2015 Annual Report Download - page 49

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8. Restructuring Initiatives
In 2015, we initiated a series of headquarters workforce reductions intended to increase organizational effectiveness
and provide cost savings that can be reinvested in our growth initiatives. As a result, we recorded the following charges
within SG&A, the vast majority of which required cash expenditures:
Restructuring Costs (a)
(millions) 2015
Severance $ 128
Pension and other 10
Total $ 138
(a) Restructuring costs are not included in our segment results.
Accruals for restructuring costs are included in other current liabilities.
Restructuring-Related Liabilities
(millions) Severance
Pension and
Other Total
Restructuring liability as of January 31, 2015 $ — $ — $ —
Charges during period 128 10 138
Paid or otherwise settled (125) (10) (135)
Restructuring liability as of January 30, 2016 $ 3 $ — $ 3
9. Credit Card Receivables Transaction
In March 2013, we sold our entire U.S. consumer credit card portfolio to TD Bank Group (TD) and recognized a gain
of $391 million. This transaction was accounted for as a sale, and the receivables are no longer reported in our
Consolidated Statements of Financial Position. Consideration received included cash of $5.7 billion, equal to the gross
(par) value of the outstanding receivables at the time of closing, and a $225 million beneficial interest asset.
TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management
policies, and oversees regulatory compliance. We perform account servicing and primary marketing functions. We
earn a substantial portion of the profits generated by the Target Credit Card and Target MasterCard portfolios. We
earned $641 million, $629 million, and $555 million of net profit-sharing income during 2015, 2014, and 2013,
respectively, which reduced SG&A expense.
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