Target‘s swift exit from Canada will reap about US$1.6 billion in tax breaks for the retailer in the United States, according to documents filed with the U.S. Securities and Exchange Commission.
The Minneapolis, Mn.-based company said it had already recognized the majority of the tax benefits in its first quarter filings and expected to book most of the rest before the end of 2015.
The filings said Target made a “strategic shift” in its business when it chose to exit Canada.
Target announced in January it would close all 133 Canadian stores, saying it would take years to turn a profit.
The retailer has been in court to iron out the details of its departure, with a variety of creditors that include landlords, suppliers and others impacted by the closures.
Liquidation companies have been overseeing the sale of Target’s inventory since last month.
