Target takes $162m hit on data breach expenses

Target has so far booked $162 million in expenses related to the data breach it suffered in late 2013 which saw thieves steal the card details of tens of millions of customers.

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Target takes $162m hit on data breach expenses

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Reporting its full year financial results, the retailer says that it incurred breach-related expenses of $191 million in 2014, which was partially offset by the recognition of a $46 million insurance receivable. This was on top of fourth quarter 2013 net costs of $17 million.

More expenses could be on their way. In December, a judge gave financial institutions the go-ahead to proceed with their lawsuit against Target over losses associated with the attack. A class action suit is also in the pipeline.

Meanwhile, another retailer recently hit by hackers, Home Depot, says that it incurred a pre-tax net expense of $33 million, or $0.02 per diluted share, related to its data breach, of which $5 million was recognised in the fourth quarter.

In its results statement, the company says its fiscal 2015 diluted earnings-per-share guidance does not include an accrual for other possible losses related to the breach.

"Other than the breach-related costs contained in the Company's fiscal 2014 earnings, at this time the Company is not able to estimate the costs, or a range of costs, related to the breach."

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