Question

Did Target accrue a contingent liability for future costs related to the data breach? If so, how much was the liability as of February 1, 2014, and which specific costs did Target accrue?

a) Yes, $10 million for legal fees and customer compensation
b) No, there was no liability accrued
c) Yes, $50 million for PR campaigns and marketing
d) Yes, $100 million for cybersecurity measures

Answer 1

Target accrued a $100 million contingent liability for cybersecurity measures in response to the data breach.

Step-by-step explanation:

Yes, Target did accrue a contingent liability for future costs related to the data breach. As of February 1, 2014, Target had accrued $100 million for cybersecurity measures. This means that Target set aside $100 million to cover the costs of improving their cybersecurity systems to prevent future data breaches.