the ultimate amount of these claims will likely include amounts for incremental counterfeit fraud losses and non-ordinary course operating expenses ( such as card reissuance costs ) that the payment card networks believe they or their issuing banks have incurred . in order for us to have liability for such claims , we believe that a court would have to find among other things that ( 1 ) at the time of the data breach the portion of our network that handles payment card data was noncompliant with applicable data security standards in a manner that contributed to the data breach , and ( 2 ) the network operating rules around reimbursement of operating costs and counterfeit fraud losses are enforceable . while an independent third-party assessor found the portion of our network that handles payment card data to be compliant with applicable data security standards in the fall of 2013 , we expect the forensic investigator working on behalf of the payment card networks nonetheless to claim that we were not in compliance with those standards at the time of the data breach . we base that expectation on our understanding that , in cases like ours where prior to a data breach the entity suffering the breach had been found by an independent third-party assessor to be fully compliant with those standards , the network-approved forensic investigator nonetheless regularly claims that the breached entity was not in fact compliant with those standards . as a result , we believe it is probable that the payment card networks will make claims against us . we expect to dispute the payment card networks ' anticipated claims , and we think it is likely that our disputes would lead to settlement negotiations consistent with the experience of other entities that have suffered similar payment card breaches . we believe such negotiations would effect a combined settlement of both the payment card networks ' counterfeit fraud loss allegations and their non-ordinary course operating expense allegations . we based our year-end accrual on the expectation of reaching negotiated settlements of the payment card networks ' anticipated claims and not on any determination that it is probable we would be found liable on these claims were they to be litigated . currently , we can only reasonably estimate a loss associated with settlements of the networks ' expected claims for non-ordinary course operating expenses . the year-end accrual does not include any amounts associated with the networks ' expected claims for alleged incremental counterfeit fraud losses because the loss associated with settling such claims , while probable in our judgment , is not reasonably estimable , in part because we have not yet received third-party fraud reporting from the payment card networks . we are not able to reasonably estimate a range of possible losses in excess of the year-end accrual related to the expected settlement of the payment card networks ' claims because the investigation into the matter is ongoing and there are significant factual and legal issues to be resolved . we believe that the ultimate amount paid on payment card network claims could be material to our results of operations in future periods . 17 litigation and governmental investigations in addition , more than 80 actions have been filed in courts in many states and other claims have been or may be asserted against us on behalf of guests , payment card issuing banks , shareholders or others seeking damages or other related relief , allegedly arising out of the data breach . state and federal agencies , including the state attorneys general , the federal trade commission and the sec are investigating events related to the data breach , including how it occurred , its consequences and our responses . although we are cooperating in these investigations , we may be subject to fines or other obligations , which may have an adverse effect on how we operate our business and our results of operations . while a loss from these matters is reasonably possible , we can not reasonably estimate a range of possible losses because our investigation into the matter is ongoing , the proceedings remain in the early stages , alleged damages have not been specified , there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified , and there are significant factual and legal issues to be resolved . further , we do not believe that a loss from these matters is probable ; therefore , we have not recorded a loss contingency liability for litigation , claims and governmental investigations in the fourth quarter . see note 17 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data . future costs we expect to incur significant investigation , legal and professional services expenses associated with the data breach in future periods . we will recognize these expenses as services are received . we also expect to incur additional expenses associated with incremental fraud and reissuance costs on target redcards . insurance coverage to limit our exposure to data breach losses , we maintain $ 100 million of network-security insurance coverage , above a $ 10 million deductible . this coverage and certain other insurance coverage may reduce our exposure . we will pursue recoveries to the maximum extent available under the policies . as of february 1 , 2014 , we have recorded a $ 44 million receivable for costs we believe are reimbursable and probable of recovery under our insurance coverage , which partially offsets the $ 61 million of expense relating to the data breach . story_separator_special_tag see note 20 of the notes to consolidated financial statements for further information . ( c ) real estate liabilities include costs incurred but not paid related to the construction or remodeling of real estate and facilities . ( d ) deferred compensation obligations include commitments related to our nonqualified deferred compensation plans . the timing of deferred compensation payouts is estimated based on payments currently made to former employees and retirees , forecasted investment returns , and the projected timing of future retirements . ( e ) estimated tax contingencies of $ 241 million , including interest and penalties , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 21 of the notes to consolidated financial statements for further information . ( f ) estimated loss contingencies , including those related to the data breach , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 17 of the notes to consolidated financial statements for further information . ( g ) real estate obligations include commitments for the purchase , construction or remodeling of real estate and facilities . ( h ) purchase obligations include all legally binding contracts such as firm minimum commitments for inventory purchases , merchandise royalties , equipment purchases , marketing-related contracts , software acquisition/license commitments and service contracts . ( note : we expect to extend certain merchandise contracts during the first quarter of 2014 , which could increase our minimum purchase commitment by approximately $ 1,500 million . ) we issue inventory purchase orders in the normal course of business , which represent authorizations to purchase that are cancelable by their terms . we do not consider purchase orders to be firm inventory commitments ; therefore , they are excluded from the table above . if we choose to cancel a purchase order , we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation . we also issue trade letters of credit in the ordinary course of business , which are excluded from this table as these obligations are conditioned on terms of the letter of credit being met . ( i ) we have not included obligations under our pension and postretirement health care benefit plans in the contractual obligations table above because no additional amounts are required to be funded as of february 1 , 2014 . our historical practice regarding these plans has been to contribute amounts necessary to satisfy minimum pension funding requirements , plus periodic discretionary amounts determined to be appropriate . off balance sheet arrangements : other than the unrecorded contractual obligations above , we do not have any arrangements or relationships with entities that are not consolidated into the financial statements . critical accounting estimates our analysis of operations and financial condition is based on our consolidated financial statements prepared in accordance with gaap . preparation of these consolidated financial statements requires us to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the consolidated financial statements , reported amounts of revenues and expenses during the reporting period and related disclosures of contingent assets 28 and liabilities . in the notes to consolidated financial statements , we describe the significant accounting policies used in preparing the consolidated financial statements . our estimates are evaluated on an ongoing basis and are drawn from historical experience and other assumptions that we believe to be reasonable under the circumstances . actual results could differ under other assumptions or conditions . however , we do not believe there is a reasonable likelihood that there will be a material change in future estimates or assumptions . our senior management has discussed the development and selection of our critical accounting estimates with the audit committee of our board of directors . the following items in our consolidated financial statements require significant estimation or judgment : inventory and cost of sales : we use the retail inventory method to account for the majority of our inventory and the related cost of sales . under this method , inventory is stated at cost using the last-in , first-out ( lifo ) method as determined by applying a cost-to-retail ratio to each merchandise grouping 's ending retail value . the cost of our inventory includes the amount we pay to our suppliers to acquire inventory , freight costs incurred in connection with the delivery of product to our distribution centers and stores , and import costs , reduced by vendor income and cash discounts . the majority of our distribution center operating costs , including compensation and benefits , are expensed to cost of sales in the period incurred . since inventory value is adjusted regularly to reflect market conditions , our inventory methodology reflects the lower of cost or market . we reduce inventory for estimated losses related to shrink and markdowns . our shrink estimate is based on historical losses verified by physical inventory counts . historically , our actual physical inventory count results have shown our estimates to be reliable . markdowns designated for clearance activity are recorded when the salability of the merchandise has diminished . inventory is at risk of obsolescence if economic conditions change , including changing consumer demand , guest preferences , changing consumer credit markets or increasing competition . we believe these risks are largely mitigated because our inventory typically turns in less than three months . inventory was $ 8,766 million and $ 7,903 million at february 1 , 2014 and february 2 , 2013 , respectively , and is further described in note 10 of the notes to consolidated financial statements . vendor income receivable : cost of sales and sg & a expenses are partially offset by various forms of consideration received from our vendors . this `` vendor

cash flows our 2013 operations were funded by both internally generated funds and proceeds from the sale of our consumer credit card receivables portfolio . cash flow provided by operations was $ 6,520 million in 2013 compared with $ 5,325 million in 2012 . our cash flows , combined with our prior year-end cash position , allowed us to pay current debt maturities , invest in the business , pay dividends and repurchase shares under our share repurchase program . concurrent with the sale of our u.s. credit card portfolio described in note 6 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data , we repaid the nonrecourse debt collateralized by credit card receivables ( 2006/2007 series variable funding certificate ) at par of $ 1.5 billion . also 25 during the first quarter of 2013 , we used $ 1.4 billion of the net proceeds received from the sale to repurchase , at market value , $ 970 million of debt . we have applied additional proceeds from the sale to reduce our debt and repurchase shares . year-end inventory levels increased from $ 7,903 million in 2012 to $ 8,766 million in 2013 , about half of which was for our 2013 canadian market entry . accounts payable increased by $ 627 million , or 8.9 percent over the same period . share repurchases during the first quarter of 2012 , we completed a $ 10 billion share repurchase program authorized by our board of directors in november 2007 , and began repurchasing shares under a new $ 5 billion program authorized by our board of directors in january 2012. during 2013 , we repurchased 21.9 million shares of our common stock for a total investment of $ 1,474 million ( $ 67.41 per share ) . we did not repurchase any shares during the second half of 2013 due to our performance and desire to maintain our strong investment grade credit ratings . during 2012 , we repurchased 32.2 million shares of our common stock for a total investment of $ 1,900 million ( $ 58.96 per share ) .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows our 2013 operations were funded by both internally generated funds and proceeds from the sale of our consumer credit card receivables portfolio . cash flow provided by operations was $ 6,520 million in 2013 compared with $ 5,325 million in 2012 . our cash flows , combined with our prior year-end cash position , allowed us to pay current debt maturities , invest in the business , pay dividends and repurchase shares under our share repurchase program . concurrent with the sale of our u.s. credit card portfolio described in note 6 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data , we repaid the nonrecourse debt collateralized by credit card receivables ( 2006/2007 series variable funding certificate ) at par of $ 1.5 billion . also 25 during the first quarter of 2013 , we used $ 1.4 billion of the net proceeds received from the sale to repurchase , at market value , $ 970 million of debt . we have applied additional proceeds from the sale to reduce our debt and repurchase shares . year-end inventory levels increased from $ 7,903 million in 2012 to $ 8,766 million in 2013 , about half of which was for our 2013 canadian market entry . accounts payable increased by $ 627 million , or 8.9 percent over the same period . share repurchases during the first quarter of 2012 , we completed a $ 10 billion share repurchase program authorized by our board of directors in november 2007 , and began repurchasing shares under a new $ 5 billion program authorized by our board of directors in january 2012. during 2013 , we repurchased 21.9 million shares of our common stock for a total investment of $ 1,474 million ( $ 67.41 per share ) . we did not repurchase any shares during the second half of 2013 due to our performance and desire to maintain our strong investment grade credit ratings . during 2012 , we repurchased 32.2 million shares of our common stock for a total investment of $ 1,900 million ( $ 58.96 per share ) .
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 Suspicious Activity Report : the ultimate amount of these claims will likely include amounts for incremental counterfeit fraud losses and non-ordinary course operating expenses ( such as card reissuance costs ) that the payment card networks believe they or their issuing banks have incurred . in order for us to have liability for such claims , we believe that a court would have to find among other things that ( 1 ) at the time of the data breach the portion of our network that handles payment card data was noncompliant with applicable data security standards in a manner that contributed to the data breach , and ( 2 ) the network operating rules around reimbursement of operating costs and counterfeit fraud losses are enforceable . while an independent third-party assessor found the portion of our network that handles payment card data to be compliant with applicable data security standards in the fall of 2013 , we expect the forensic investigator working on behalf of the payment card networks nonetheless to claim that we were not in compliance with those standards at the time of the data breach . we base that expectation on our understanding that , in cases like ours where prior to a data breach the entity suffering the breach had been found by an independent third-party assessor to be fully compliant with those standards , the network-approved forensic investigator nonetheless regularly claims that the breached entity was not in fact compliant with those standards . as a result , we believe it is probable that the payment card networks will make claims against us . we expect to dispute the payment card networks ' anticipated claims , and we think it is likely that our disputes would lead to settlement negotiations consistent with the experience of other entities that have suffered similar payment card breaches . we believe such negotiations would effect a combined settlement of both the payment card networks ' counterfeit fraud loss allegations and their non-ordinary course operating expense allegations . we based our year-end accrual on the expectation of reaching negotiated settlements of the payment card networks ' anticipated claims and not on any determination that it is probable we would be found liable on these claims were they to be litigated . currently , we can only reasonably estimate a loss associated with settlements of the networks ' expected claims for non-ordinary course operating expenses . the year-end accrual does not include any amounts associated with the networks ' expected claims for alleged incremental counterfeit fraud losses because the loss associated with settling such claims , while probable in our judgment , is not reasonably estimable , in part because we have not yet received third-party fraud reporting from the payment card networks . we are not able to reasonably estimate a range of possible losses in excess of the year-end accrual related to the expected settlement of the payment card networks ' claims because the investigation into the matter is ongoing and there are significant factual and legal issues to be resolved . we believe that the ultimate amount paid on payment card network claims could be material to our results of operations in future periods . 17 litigation and governmental investigations in addition , more than 80 actions have been filed in courts in many states and other claims have been or may be asserted against us on behalf of guests , payment card issuing banks , shareholders or others seeking damages or other related relief , allegedly arising out of the data breach . state and federal agencies , including the state attorneys general , the federal trade commission and the sec are investigating events related to the data breach , including how it occurred , its consequences and our responses . although we are cooperating in these investigations , we may be subject to fines or other obligations , which may have an adverse effect on how we operate our business and our results of operations . while a loss from these matters is reasonably possible , we can not reasonably estimate a range of possible losses because our investigation into the matter is ongoing , the proceedings remain in the early stages , alleged damages have not been specified , there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified , and there are significant factual and legal issues to be resolved . further , we do not believe that a loss from these matters is probable ; therefore , we have not recorded a loss contingency liability for litigation , claims and governmental investigations in the fourth quarter . see note 17 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data . future costs we expect to incur significant investigation , legal and professional services expenses associated with the data breach in future periods . we will recognize these expenses as services are received . we also expect to incur additional expenses associated with incremental fraud and reissuance costs on target redcards . insurance coverage to limit our exposure to data breach losses , we maintain $ 100 million of network-security insurance coverage , above a $ 10 million deductible . this coverage and certain other insurance coverage may reduce our exposure . we will pursue recoveries to the maximum extent available under the policies . as of february 1 , 2014 , we have recorded a $ 44 million receivable for costs we believe are reimbursable and probable of recovery under our insurance coverage , which partially offsets the $ 61 million of expense relating to the data breach . story_separator_special_tag see note 20 of the notes to consolidated financial statements for further information . ( c ) real estate liabilities include costs incurred but not paid related to the construction or remodeling of real estate and facilities . ( d ) deferred compensation obligations include commitments related to our nonqualified deferred compensation plans . the timing of deferred compensation payouts is estimated based on payments currently made to former employees and retirees , forecasted investment returns , and the projected timing of future retirements . ( e ) estimated tax contingencies of $ 241 million , including interest and penalties , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 21 of the notes to consolidated financial statements for further information . ( f ) estimated loss contingencies , including those related to the data breach , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 17 of the notes to consolidated financial statements for further information . ( g ) real estate obligations include commitments for the purchase , construction or remodeling of real estate and facilities . ( h ) purchase obligations include all legally binding contracts such as firm minimum commitments for inventory purchases , merchandise royalties , equipment purchases , marketing-related contracts , software acquisition/license commitments and service contracts . ( note : we expect to extend certain merchandise contracts during the first quarter of 2014 , which could increase our minimum purchase commitment by approximately $ 1,500 million . ) we issue inventory purchase orders in the normal course of business , which represent authorizations to purchase that are cancelable by their terms . we do not consider purchase orders to be firm inventory commitments ; therefore , they are excluded from the table above . if we choose to cancel a purchase order , we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation . we also issue trade letters of credit in the ordinary course of business , which are excluded from this table as these obligations are conditioned on terms of the letter of credit being met . ( i ) we have not included obligations under our pension and postretirement health care benefit plans in the contractual obligations table above because no additional amounts are required to be funded as of february 1 , 2014 . our historical practice regarding these plans has been to contribute amounts necessary to satisfy minimum pension funding requirements , plus periodic discretionary amounts determined to be appropriate . off balance sheet arrangements : other than the unrecorded contractual obligations above , we do not have any arrangements or relationships with entities that are not consolidated into the financial statements . critical accounting estimates our analysis of operations and financial condition is based on our consolidated financial statements prepared in accordance with gaap . preparation of these consolidated financial statements requires us to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the consolidated financial statements , reported amounts of revenues and expenses during the reporting period and related disclosures of contingent assets 28 and liabilities . in the notes to consolidated financial statements , we describe the significant accounting policies used in preparing the consolidated financial statements . our estimates are evaluated on an ongoing basis and are drawn from historical experience and other assumptions that we believe to be reasonable under the circumstances . actual results could differ under other assumptions or conditions . however , we do not believe there is a reasonable likelihood that there will be a material change in future estimates or assumptions . our senior management has discussed the development and selection of our critical accounting estimates with the audit committee of our board of directors . the following items in our consolidated financial statements require significant estimation or judgment : inventory and cost of sales : we use the retail inventory method to account for the majority of our inventory and the related cost of sales . under this method , inventory is stated at cost using the last-in , first-out ( lifo ) method as determined by applying a cost-to-retail ratio to each merchandise grouping 's ending retail value . the cost of our inventory includes the amount we pay to our suppliers to acquire inventory , freight costs incurred in connection with the delivery of product to our distribution centers and stores , and import costs , reduced by vendor income and cash discounts . the majority of our distribution center operating costs , including compensation and benefits , are expensed to cost of sales in the period incurred . since inventory value is adjusted regularly to reflect market conditions , our inventory methodology reflects the lower of cost or market . we reduce inventory for estimated losses related to shrink and markdowns . our shrink estimate is based on historical losses verified by physical inventory counts . historically , our actual physical inventory count results have shown our estimates to be reliable . markdowns designated for clearance activity are recorded when the salability of the merchandise has diminished . inventory is at risk of obsolescence if economic conditions change , including changing consumer demand , guest preferences , changing consumer credit markets or increasing competition . we believe these risks are largely mitigated because our inventory typically turns in less than three months . inventory was $ 8,766 million and $ 7,903 million at february 1 , 2014 and february 2 , 2013 , respectively , and is further described in note 10 of the notes to consolidated financial statements . vendor income receivable : cost of sales and sg & a expenses are partially offset by various forms of consideration received from our vendors . this `` vendor

