Target Says Credit Card Data Breach Cost It $162M In 2013-14

[InfoSec News <alerts () infosecnews org>]

http://techcrunch.com/2015/02/25/target-says-credit-card-data-breach-cost-it-162m-in-2013-14/

By Ingrid Lunden
Techcrunch.com
February 26, 2015

When it comes to data breaches, retailers are one of the biggest targets 
these days, and today we have some detail on the costs around one of the 
more high-profile attacks. Target today said that it has booked $162 
million in expenses across 2013 and 2014 related to its data breach, in 
which hackers broke into the company’s network to access credit card 
information and other customer data, affecting some 70 million customers.

The figure, revealed in the company’s Q4 earnings published today, 
includes $4 million in Q4, and $191 million in gross expenses for 2014, as 
well as $61 million gross for 2013. Target says that the gross number was 
offset in part by insurance receivables of $46 million for 2014 and $44 
million for 2013.

This is also not including whatever expenses Target may incur as a result 
of class action lawsuits filed after the breach, or wider damage to its 
reputation with customers. In January, a federal judge gave plaintiffs the 
nod to proceed with their class action case against the company.

Overall Target posted revenues of $21.8 billion, beating analyst 
estimates, and adjusted earnings per share of $1.50, beating its guidance. 
The company also recorded a pre-tax loss of $5.1 billion related to the 
company pulling out of operating in Canada. In pre-market trading, the 
company’s shares were up a little over 1% to $77.85 per share.

[...]

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