14 DAY TRIAL // Relying on currently available information, Target has updated the estimates for the expenses related to the breach of its systems discovered in December 2013, which resulted in data loss affecting up to 110 million customers.
A statement from the company informs that the forecast cost relating to the breach is $148 / €110.6 million, out of which $38 / €28.4 million are covered by insurance.
“Expenses for the quarter include an increase to the accrual for estimated probable losses for what the Company believes to be the vast majority of actual and potential breach-related claims, including claims by payment card networks,” reads the statement.
Target says that the estimates rely on proper evaluation, with current information, historical precedents and assessment of the validity of claims being contributing factors to the conclusion.
However, the company is aware of the fact that the numbers may change as new information is revealed, leading to potential material losses beyond the current forecast. On the other hand, determining such possible losses cannot be calculated at the moment.
“The accrual does not reflect future breach-related legal, consulting or administrative fees, which are expensed as incurred and not expected to be material in any individual period,” the statement also added.