Target 2015 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2015 Target annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Future€Minimum€Lease€Payments
(millions) Operating€Leases€(a) Capital€Leases€(b) Rent€Income Total
2016 $186 $130 $(21) $ 295
2017 183 73 (19)237
2018 178 71 (18)231
2019 167 70 (17)220
2020 157 69 (17)209
After 2020 2,842 1,277 (286)3,833
Total future minimum lease payments $3,713 $1,690 $(378) $ 5,025
Less: Interest€(c) 831
Present value of future minimum capital
lease payments€(d) $859
Note: Minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. Minimum lease payments
also exclude payments to landlords for fixed purchase options which we believe are reasonably assured of being exercised.
(a) Total contractual lease payments include $1,995 million related to options to extend lease terms that are reasonably assured of being
exercised and also includes $90 million of legally binding minimum lease payments for stores that are expected to open in 2016 or later.
(b) Capital lease payments include $614 million related to options to extend lease terms that are reasonably assured of being exercised and
also includes $311 million of legally binding minimum lease payments for stores that are expected to open in 2016 or later.
(c) Calculated using the interest rate at inception for each lease.
(d) Includes the current portion of $59 million.
23. Income Taxes
Earnings from continuing operations before income taxes were $4,923 million, $3,653 million, and $4,121 million during
2015, 2014, and 2013, including $373 million, $261 million, and $196 million earned by our foreign entities subject to
tax outside of the U.S.
Tax Rate Reconciliation – Continuing Operations 2015 2014 2013
Federal statutory rate 35.0%35.0%35.0%
State€income€taxes,€net€of€the€federal€tax€benefit 3.0 2.2 2.4
International (2.3)(2.3)(1.2)
Change in valuation allowance (2.3)— —
Other (0.9)(1.9)(1.6)
Effective tax rate 32.5%33.0%34.6%
Provision€for€Income€Taxes
(millions) 2015 2014 2013
Current:
Federal $1,652 $1,074 $1,206
State 265 116 150
International 7 7 13
Total current 1,924 1,197 1,369
Deferred:
Federal (272)(2)56
State (50)10 —
International — (1)2
Total deferred (322)7 58
Total provision $1,602 $1,204 $1,427
53