Target 2015 Annual Report Download - page 55

Canada Exit
See Note 7 for information related to Canada exit-related contingent liabilities.
Other Contingencies
We are exposed to other claims and litigation arising in the ordinary course of business and use various methods to
resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents.
We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and
estimable liabilities. We do not believe that any of these identified claims or litigation will be material to our results of
operations, cash flows, or financial condition.
Commitments
Purchase obligations, which include all legally binding contracts such as firm commitments for inventory purchases,
merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments,
and service contracts, were $1,950 million and $2,411 million at January€30, 2016 and January€31, 2015, respectively.
These purchase obligations are primarily due within three years and recorded as liabilities when inventory is received.
We issue inventory purchase orders, which represent authorizations to purchase that are cancelable by their terms.
We do not consider purchase orders to be firm inventory commitments. If we choose to cancel a purchase order, we
may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation. Real estate
obligations, which include commitments for the purchase, construction or remodeling of real estate and facilities, were
$279 million and $243 million at January€30, 2016 and January€31, 2015, respectively. These real estate obligations
are primarily due within one year, a portion of which are recorded as liabilities.
We issue letters of credit and surety bonds in the ordinary course of business. Trade letters of credit totaled $1,510
million and $1,447 million at January€30, 2016 and January€31, 2015, respectively, a portion of which are reflected in
accounts payable. Standby letters of credit and surety bonds, relating primarily to insurance and regulatory
requirements, totaled $438 million and $459 million at January€30, 2016 and January€31, 2015, respectively.
20. Notes Payable and Long-Term Debt
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03
amended ASC 835-30 Interest-Imputation of Debt Interest, to simplify the presentation of deferred issuance costs by
requiring they be classified as a direct reduction of the debt balances.€We have retrospectively adopted this ASU for
the year ended January 30, 2016. As a result, $63 million and $71 million of deferred issuance costs have been
reclassified from Other noncurrent assets to Long-term debt and other borrowings in our Consolidated Statements of
Financial Position as of January 30, 2016 and January 31, 2015, respectively.
At January€30, 2016, the carrying value and maturities of our debt portfolio were as follows:
Debt€Maturities January 30, 2016
(dollars in millions) Rate€(a) Balance
Due 2016-2020 4.8% $ 5,268
Due 2021-2025 3.5 2,104
Due 2026-2030 6.7 244
Due 2031-2035 6.5 762
Due 2036-2040 6.7 2,010
Due 2041-2045 4.0 1,471
Total notes and debentures 4.9 11,859
Swap valuation adjustments 42
Capital lease obligations 859
Less: Amounts due within one year (815)
Long-term debt $11,945
(a) Reflects the weighted average stated interest rate as of year-end.
50