Target 2015 Annual Report Download - page 52

14. Property and Equipment
Property and equipment is depreciated using the straight-line method over estimated useful lives or lease terms if
shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter
of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably assured
at the date the leasehold improvements are acquired. Depreciation and capital lease amortization expense for 2015,
2014, and 2013 was $2,191 million, $2,108 million, and $1,975 million, respectively. For income tax purposes,
accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility
pre-opening costs, including supplies and payroll, are expensed as incurred.
Estimated€Useful€Lives Life (Years)
Buildings and improvements 8-39
Fixtures and equipment 2-15
Computer hardware and software 2-7
Long-lived assets are reviewed for impairment when events or changes in circumstances, such as a decision to relocate
or close a store or make significant software changes, indicate that the asset's carrying value may not be recoverable.
For asset groups classified as held for sale, the carrying value is compared to the fair value less cost to sell. We
estimate fair value by obtaining market appraisals, valuations from third party brokers, or other valuation techniques.
Impairments (a)
(millions) 2015 2014 2013
Impairments included in segment SG&A $ 50 $ 108 $ 58
Unallocated impairments (b) 4 16 19
Total impairments $ 54 $ 124 $ 77
(a) Substantially all of the impairments are recorded in SG&A expense on the Consolidated Statements of Operations, primarily from completed
or planned store closures and software changes.
(b) For 2015, represents long-lived asset impairments from our decision to wind down certain noncore operations. For 2014 and 2013,
represents impairments of undeveloped land.
15. Other Noncurrent Assets
Other€Noncurrent€Assets
(millions)
January 30,
2016
January 31,
2015
Goodwill and intangible assets $277 $298
Company-owned€life€insurance€investments€(a) 308 322
Pension asset 66 1
Interest rate swaps€(b) 27 65
Other 162 193
Total $840 $879
(a) Company-owned life insurance policies on approximately 4,000 team members who have been designated highly compensated under
the Internal Revenue Code and have given their consent to be insured. Amounts are presented net of loans that are secured by some
of these policies.
(b) See Notes€10 and 21 for additional information relating to our interest rate swaps.
16. Goodwill and Intangible Assets
Goodwill totaled $133 million and $147 million at January€30, 2016 and January€31, 2015, respectively. During 2015,
we announced our decision to wind down certain noncore operations. As a result, we recorded a $35 million pretax
impairment loss, which included approximately $23 million of intangible assets and $12 million of goodwill. These costs
were included in SG&A on our Consolidated Statements of Operations, but were not included in our segment results.
No impairments were recorded in 2015, 2014 or 2013 as a result of the annual goodwill impairment tests performed.
47