A method comprises providing a magnetic element including a free layer, a pinned layer, a nonmagnetic spacer layer between the free and pinned layers, and a pinning layer adjacent the pinned layer. The free layer is biased in a first direction. The pinned layer has a first layer having a first magnetization, a second layer having a second magnetization, and a nonmagnetic layer between the first and second layer. The first magnetization is pinned parallel to a second direction substantially perpendicular to the first direction and substantially perpendicular to the ABS. The second magnetization is antiparallel to the second direction. The pinning layer is oriented along the second direction. The method further comprises providing a hard bias structure having a hard bias magnetization, initializing the hard bias magnetization along the second direction, performing at least one thermal treatment, and resetting the hard bias magnetization substantially along the first direction.