Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TARGET CORP | a11-12537_18k.htm |
Exhibit 99
FOR IMMEDIATE RELEASE
|
Contacts: |
John Hulbert, Investors, (612) 761-6627 |
|
|
Morgan O’Murray, Financial Media, (612) 761-5818 |
|
|
Target Media Hotline, (612) 696-3400 |
Target Corporation Announces
First Quarter 2011 Financial Results
MINNEAPOLIS (May 18, 2011) — Target Corporation (NYSE: TGT) today reported net earnings of $689 million for the quarter ended April 30, 2011, compared with $671 million in the quarter ended May 1, 2010. Earnings per share in the first quarter increased 9.8 percent to $0.99 from $0.90 in the same period a year ago. All earnings per share figures refer to diluted earnings per share.
“Our first quarter financial performance was the result of stronger-than-expected profitability in our Credit Card Segment, which offset the impact of weaker-than-anticipated sales in our Retail Segment,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “Our PFresh remodel program and 5% REDcard Rewards loyalty program continue to deliver incremental traffic and sales in an environment where our guests remain cautious in their spending. Throughout the organization we’re focused on driving sales by providing value, quality and reliability to our guests and delivering on both halves of our Expect More. Pay Less. brand promise.”
– more –
U.S. Retail Segment Results
As previously reported, sales increased 2.8 percent in the first quarter to $15.6 billion in 2011 from $15.2 billion in 2010, due to a 2.0 percent increase in comparable-store sales and the contribution from new stores. Segment earnings before interest expense and income taxes (EBIT) were $1,062 million in the first quarter of 2011, a decrease of 4.2 percent from $1,108 million in 2010.
First quarter 2011 EBITDA and EBIT margin rates were 10.1 percent and 6.8 percent, respectively, compared with 10.7 percent and 7.3 percent in 2010. First quarter gross margin rate declined to 30.4 percent in 2011 from 31.3 percent in 2010, due primarily to the impact of the company’s PFresh remodel program and its 5% REDcard Rewards initiative. The company’s first quarter selling, general and administrative (SG&A) expense rate was 20.4 percent in 2011, down from 20.6 percent in 2010.
Canadian Segment Results
First quarter 2011 EBIT was $(11) million due to start-up expenses related to the company’s expected market entry in 2013.
U.S. Credit Card Segment Results
First quarter average receivables decreased 14.4 percent to $6.5 billion in 2011 from $7.5 billion in 2010. Average receivables directly funded by Target increased 6.0 percent in the first quarter to $2.5 billion from $2.4 billion in 2010.
First quarter bad debt expense was $12 million in 2011, down from $197 million in 2010, driven by improved trends in key measures of risk. Segment profit for the quarter was $194 million, compared with $111 million in first quarter 2010. Annualized segment pre-tax return on invested capital was 30.9 percent in first quarter 2011, compared with 18.8 percent in 2010.
Interest Expense and Taxes
Net interest expense for the quarter was $183 million, down from $187 million in first quarter 2010.
The company’s effective income tax rate was 36.3 percent in first quarter 2011, down from 36.4 percent in 2010.
Share Repurchase
In the first quarter 2011, the company repurchased approximately 15.4 million shares of its common stock at an average price of $53.32, for a total investment of $819 million.
Miscellaneous
Target Corporation will webcast its first quarter earnings conference call at 9:30am CDT today. Investors and the media are invited to listen to the call through the company’s website at www.target.com/investors (click on “Events + Presentations” and then “Archives + Webcasts”). A telephone replay of the call will be available beginning at approximately 11:30am CDT today through the end of business on May 20, 2011. The replay number is (800) 642-1687 (passcode: 20423412).
About Target
Minneapolis-based Target Corporation (NYSE:TGT) serves guests at 1,755 stores in 49 states nationwide and at Target.com. In addition, the company operates a credit card segment that offers branded proprietary credit card products. Since 1946, Target has given 5 percent of its income through community grants and programs; today, that giving equals more than $3 million a week. For more information about Target’s commitment to corporate responsibility, visit Target.com/hereforgood.
For more information, visit Target.com/Pressroom.
# # #
TARGET CORPORATION
Consolidated Statements of Operations
|
|
|
Three Months Ended |
|
|
| ||||
|
|
|
April 30, |
|
May 1, |
|
|
| ||
|
(millions, except per share data) (unaudited) |
|
2011 |
|
2010 |
|
Change |
| ||
|
Sales |
|
$ |
15,580 |
|
$ |
15,158 |
|
2.8 |
% |
|
Credit card revenues |
|
355 |
|
435 |
|
(18.3 |
) | ||
|
Total revenues |
|
15,935 |
|
15,593 |
|
2.2 |
| ||
|
Cost of sales |
|
10,838 |
|
10,412 |
|
4.1 |
| ||
|
Selling, general and administrative expenses |
|
3,233 |
|
3,143 |
|
2.9 |
| ||
|
Credit card expenses |
|
88 |
|
280 |
|
(68.5 |
) | ||
|
Depreciation and amortization |
|
512 |
|
516 |
|
(0.7 |
) | ||
|
Earnings before interest expense and income taxes |
|
1,264 |
|
1,242 |
|
1.8 |
| ||
|
Net interest expense |
|
|
|
|
|
|
| ||
|
Nonrecourse debt collateralized by credit card receivables |
|
19 |
|
23 |
|
(15.9 |
) | ||
|
Other interest expense |
|
164 |
|
165 |
|
(0.5 |
) | ||
|
Interest income |
|
— |
|
(1 |
) |
(42.5 |
) | ||
|
Net interest expense |
|
183 |
|
187 |
|
(2.3 |
) | ||
|
Earnings before income taxes |
|
1,081 |
|
1,055 |
|
2.5 |
| ||
|
Provision for income taxes |
|
392 |
|
384 |
|
2.2 |
| ||
|
Net earnings |
|
$ |
689 |
|
$ |
671 |
|
2.7 |
% |
|
Basic earnings per share |
|
$ |
0.99 |
|
$ |
0.91 |
|
9.7 |
% |
|
Diluted earnings per share |
|
$ |
0.99 |
|
$ |
0.90 |
|
9.8 |
% |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
| ||
|
Basic |
|
692.6 |
|
739.9 |
|
|
| ||
|
Diluted |
|
697.4 |
|
745.7 |
|
|
| ||
Subject to reclassification
TARGET CORPORATION
Consolidated Statements of Financial Position
|
|
|
April 30, |
|
January 29, |
|
May 1, |
| |||
|
(millions) |
|
2011 |
|
2011 |
|
2010 |
| |||
|
|
|
(unaudited) |
|
|
|
(unaudited) |
| |||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, including marketable securities of $872, $1,129 and $1,015 |
|
$ |
1,474 |
|
$ |
1,712 |
|
$ |
1,578 |
|
|
Credit card receivables, net of allowance of $565, $690 and $930 |
|
5,721 |
|
6,153 |
|
6,330 |
| |||
|
Inventory |
|
7,696 |
|
7,596 |
|
7,249 |
| |||
|
Other current assets |
|
1,527 |
|
1,752 |
|
2,065 |
| |||
|
Total current assets |
|
16,418 |
|
17,213 |
|
17,222 |
| |||
|
Property and equipment |
|
|
|
|
|
|
| |||
|
Land |
|
5,989 |
|
5,928 |
|
5,803 |
| |||
|
Buildings and improvements |
|
23,197 |
|
23,081 |
|
22,332 |
| |||
|
Fixtures and equipment |
|
4,691 |
|
4,939 |
|
4,597 |
| |||
|
Computer hardware and software |
|
2,270 |
|
2,533 |
|
2,428 |
| |||
|
Construction-in-progress |
|
837 |
|
567 |
|
497 |
| |||
|
Accumulated depreciation |
|
(11,336 |
) |
(11,555 |
) |
(10,445 |
) | |||
|
Property and equipment, net |
|
25,648 |
|
25,493 |
|
25,212 |
| |||
|
Other noncurrent assets |
|
980 |
|
999 |
|
889 |
| |||
|
Total assets |
|
$ |
43,046 |
|
$ |
43,705 |
|
$ |
43,323 |
|
|
Liabilities and shareholders’ investment |
|
|
|
|
|
|
| |||
|
Accounts payable |
|
$ |
6,296 |
|
$ |
6,625 |
|
$ |
6,150 |
|
|
Accrued and other current liabilities |
|
3,279 |
|
3,326 |
|
3,183 |
| |||
|
Unsecured debt and other borrowings |
|
1,124 |
|
119 |
|
797 |
| |||
|
Nonrecourse debt collateralized by credit card receivables |
|
189 |
|
— |
|
67 |
| |||
|
Total current liabilities |
|
10,888 |
|
10,070 |
|
10,197 |
| |||
|
Unsecured debt and other borrowings |
|
10,640 |
|
11,653 |
|
10,642 |
| |||
|
Nonrecourse debt collateralized by credit card receivables |
|
3,776 |
|
3,954 |
|
4,152 |
| |||
|
Deferred income taxes |
|
916 |
|
934 |
|
916 |
| |||
|
Other noncurrent liabilities |
|
1,596 |
|
1,607 |
|
1,819 |
| |||
|
Total noncurrent liabilities |
|
16,928 |
|
18,148 |
|
17,529 |
| |||
|
Shareholders’ investment |
|
|
|
|
|
|
| |||
|
Common stock |
|
57 |
|
59 |
|
62 |
| |||
|
Additional paid-in capital |
|
3,345 |
|
3,311 |
|
3,010 |
| |||
|
Retained earnings |
|
12,398 |
|
12,698 |
|
13,098 |
| |||
|
Accumulated other comprehensive loss |
|
(570 |
) |
(581 |
) |
(573 |
) | |||
|
Total shareholders’ investment |
|
15,230 |
|
15,487 |
|
15,597 |
| |||
|
Total liabilities and shareholders’ investment |
|
$ |
43,046 |
|
$ |
43,705 |
|
$ |
43,323 |
|
|
Common shares outstanding |
|
689.0 |
|
704.0 |
|
738.9 |
| |||
Subject to reclassification
TARGET CORPORATION
Consolidated Statements of Cash Flows
|
|
|
Three Months Ended |
| ||||
|
|
|
April 30, |
|
May 1, |
| ||
|
(millions) (unaudited) |
|
2011 |
|
2010 |
| ||
|
Operating activities |
|
|
|
|
| ||
|
Net earnings |
|
$ |
689 |
|
$ |
671 |
|
|
Reconciliation to cash flow |
|
|
|
|
| ||
|
Depreciation and amortization |
|
512 |
|
516 |
| ||
|
Share-based compensation expense |
|
21 |
|
25 |
| ||
|
Deferred income taxes |
|
100 |
|
109 |
| ||
|
Bad debt expense |
|
12 |
|
197 |
| ||
|
Non-cash (gains)/losses and other, net |
|
19 |
|
(119 |
) | ||
|
Changes in operating accounts: |
|
|
|
|
| ||
|
Accounts receivable originated at Target |
|
149 |
|
201 |
| ||
|
Inventory |
|
(99 |
) |
(70 |
) | ||
|
Other current assets |
|
84 |
|
(56 |
) | ||
|
Other noncurrent assets |
|
14 |
|
(35 |
) | ||
|
Accounts payable |
|
(330 |
) |
(361 |
) | ||
|
Accrued and other current liabilities |
|
(53 |
) |
63 |
| ||
|
Other noncurrent liabilities |
|
(16 |
) |
17 |
| ||
|
Cash flow provided by operations |
|
1,102 |
|
1,158 |
| ||
|
Investing activities |
|
|
|
|
| ||
|
Expenditures for property and equipment |
|
(632 |
) |
(407 |
) | ||
|
Proceeds from disposal of property and equipment |
|
1 |
|
12 |
| ||
|
Change in accounts receivable originated at third parties |
|
271 |
|
238 |
| ||
|
Other investments |
|
(10 |
) |
(18 |
) | ||
|
Cash flow required for investing activities |
|
(370 |
) |
(175 |
) | ||
|
Financing activities |
|
|
|
|
| ||
|
Reductions of long-term debt |
|
— |
|
(1,170 |
) | ||
|
Dividends paid |
|
(174 |
) |
(126 |
) | ||
|
Repurchase of stock |
|
(812 |
) |
(378 |
) | ||
|
Stock option exercises and related tax benefit |
|
16 |
|
69 |
| ||
|
Cash flow required for financing activities |
|
(970 |
) |
(1,605 |
) | ||
|
Net decrease in cash and cash equivalents |
|
(238 |
) |
(622 |
) | ||
|
Cash and cash equivalents at beginning of period |
|
1,712 |
|
2,200 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
1,474 |
|
$ |
1,578 |
|
Subject to reclassification
TARGET CORPORATION
U.S. Retail Segment
|
|
|
Three Months Ended |
|
|
| ||||
|
U.S. Retail Segment Results |
|
April 30, |
|
May 1, |
|
|
| ||
|
(millions) (unaudited) |
|
2011 |
|
2010 |
|
Change |
| ||
|
Sales |
|
$ |
15,580 |
|
$ |
15,158 |
|
2.8 |
% |
|
Cost of sales |
|
10,838 |
|
10,412 |
|
4.1 |
| ||
|
Gross margin |
|
4,742 |
|
4,746 |
|
(0.1 |
) | ||
|
SG&A expenses(a) |
|
3,173 |
|
3,126 |
|
1.5 |
| ||
|
EBITDA |
|
1,569 |
|
1,620 |
|
(3.1 |
) | ||
|
Depreciation and amortization |
|
507 |
|
512 |
|
(0.8 |
) | ||
|
EBIT |
|
$ |
1,062 |
|
$ |
1,108 |
|
(4.2 |
)% |
EBITDA is earnings before interest expense, income taxes, depreciation and amortization.
EBIT is earnings before interest expense and income taxes.
(a) Loyalty Program discounts are recorded as reductions to sales in our U.S. Retail Segment. Effective with the October 2010 nationwide launch of our new 5% REDcard Rewards loyalty program, we changed the formula under which our U.S. Credit Card segment reimburses our U.S. Retail Segment to better align with the attributes of the new program. In the three months ended April 30, 2011, these reimbursed amounts were $49 million, compared with $17 million in the corresponding period in 2010. In all periods these amounts were recorded as reductions to SG&A expenses within the U.S. Retail Segment and increases to operations and marketing expenses within the U.S. Credit Card Segment.
|
|
|
Three Months Ended |
| ||
|
U.S. Retail Segment Rate Analysis |
|
April 30, |
|
May 1, |
|
|
(unaudited) |
|
2011 |
|
2010 |
|
|
Gross margin rate |
|
30.4 |
% |
31.3 |
% |
|
SG&A expense rate |
|
20.4 |
% |
20.6 |
% |
|
EBITDA margin rate |
|
10.1 |
% |
10.7 |
% |
|
Depreciation and amortization expense rate |
|
3.3 |
% |
3.4 |
% |
|
EBIT margin rate |
|
6.8 |
% |
7.3 |
% |
U.S. Retail Segment rate analysis metrics are computed by dividing the applicable amount by sales.
|
|
|
Three Months Ended |
| ||
|
Comparable-Store Sales |
|
April 30, |
|
May 1, |
|
|
(unaudited) |
|
2011 |
|
2010 |
|
|
Comparable-store sales |
|
2.0 |
% |
2.8 |
% |
|
Drivers of changes in comparable-store sales: |
|
|
|
|
|
|
Number of transactions |
|
0.4 |
% |
2.2 |
% |
|
Average transaction amount |
|
1.6 |
% |
0.7 |
% |
|
Units per transaction |
|
4.4 |
% |
1.3 |
% |
|
Selling price per unit |
|
(2.6 |
)% |
(0.7 |
)% |
The comparable-store sales increases or decreases above are calculated by comparing sales in fiscal year periods with comparable prior year periods of equivalent length.
|
|
|
Three Months Ended |
| ||
|
REDcard Penetration |
|
April 30, |
|
May 1, |
|
|
(unaudited) |
|
2011 |
|
2010 |
|
|
Target credit penetration |
|
5.9 |
% |
4.4 |
% |
|
Target debit penetration |
|
1.7 |
% |
0.5 |
% |
|
Total store REDcard penetration |
|
7.6 |
% |
4.9 |
% |
Represents the percentage of Target store sales that are paid for using REDcards.
|
|
|
Number of Stores |
|
Retail Square Feet(a) |
| ||||||||
|
Number of Stores and Retail Square Feet |
|
April 30, |
|
January 29, |
|
May 1, |
|
April 30, |
|
January 29, |
|
May 1, |
|
|
(unaudited) |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2011 |
|
2010 |
|
|
General merchandise |
|
953 |
|
1,037 |
|
1,285 |
|
116,462 |
|
127,292 |
|
160,250 |
|
|
Expanded grocery assortment |
|
550 |
|
462 |
|
204 |
|
73,253 |
|
61,823 |
|
27,199 |
|
|
SuperTarget |
|
252 |
|
251 |
|
251 |
|
44,681 |
|
44,503 |
|
44,503 |
|
|
Total |
|
1,755 |
|
1,750 |
|
1,740 |
|
234,396 |
|
233,618 |
|
231,952 |
|
(a) In thousands; reflects total square feet, less office, distribution center and vacant space.
Subject to reclassification
TARGET CORPORATION
Canadian Segment
|
|
|
Three Months Ended |
|
|
| ||||
|
Canadian Segment Results |
|
April 30, |
|
May 1, |
|
|
| ||
|
(millions) (unaudited) |
|
2011 |
|
2010 |
|
Change |
| ||
|
Sales |
|
$ |
— |
|
$ |
— |
|
— |
% |
|
Cost of sales |
|
— |
|
— |
|
— |
| ||
|
Gross margin |
|
— |
|
— |
|
— |
| ||
|
SG&A expenses(a) |
|
11 |
|
— |
|
100.0 |
| ||
|
EBITDA |
|
(11 |
) |
— |
|
100.0 |
| ||
|
Depreciation and amortization |
|
— |
|
— |
|
— |
| ||
|
EBIT |
|
$ |
(11 |
) |
$ |
— |
|
100.0 |
% |
(a) SG&A expenses include our Canadian Segment start-up costs. These costs consisted primarily of legal, payroll, and consulting expenses.
EBITDA is earnings before interest expense, income taxes, depreciation and amortization.
EBIT is earnings before interest expense and income taxes.
TARGET CORPORATION
U.S. Credit Card Segment
|
|
|
Three Months Ended |
|
Three Months Ended |
| ||||||
|
|
|
April 30, 2011 |
|
May 1, 2010 |
| ||||||
|
U.S. Credit Card Segment Results |
|
Amount |
|
Annualized |
|
Amount |
|
Annualized |
| ||
|
(millions) (unaudited) |
|
(in millions) |
|
Rate(d) |
|
(in millions) |
|
Rate(d) |
| ||
|
Finance charge revenue |
|
$ |
292 |
|
18.1 |
% |
$ |
350 |
|
18.5 |
% |
|
Late fees and other revenue |
|
42 |
|
2.6 |
|
59 |
|
3.1 |
| ||
|
Third party merchant fees |
|
21 |
|
1.3 |
|
26 |
|
1.4 |
| ||
|
Total revenues |
|
355 |
|
22.0 |
|
435 |
|
23.0 |
| ||
|
Bad debt expense |
|
12 |
|
0.8 |
|
197 |
|
10.5 |
| ||
|
Operations and marketing expenses(a) |
|
125 |
|
7.8 |
|
100 |
|
5.3 |
| ||
|
Depreciation and amortization |
|
5 |
|
0.3 |
|
4 |
|
0.2 |
| ||
|
Total expenses |
|
142 |
|
8.8 |
|
301 |
|
16.0 |
| ||
|
EBIT |
|
213 |
|
13.2 |
|
134 |
|
7.1 |
| ||
|
Interest expense on nonrecourse debt collateralized by credit card receivables |
|
19 |
|
|
|
23 |
|
|
| ||
|
Segment profit |
|
$ |
194 |
|
|
|
$ |
111 |
|
|
|
|
Average gross credit card receivables funded by Target(b) |
|
$ |
2,504 |
|
|
|
$ |
2,361 |
|
|
|
|
Segment pretax ROIC(c) |
|
30.9 |
% |
|
|
18.8 |
% |
|
| ||
(a) Loyalty Program discounts are recorded as reductions to sales in our U.S. Retail Segment. Effective with the October 2010 nationwide launch of our new 5% REDcard Rewards loyalty program, we changed the formula under which our U.S. Credit Card segment reimburses our U.S. Retail Segment to better align with the attributes of the new program. In the three months ended April 30, 2011, these reimbursed amounts were $49 million, compared with $17 million in the corresponding period in 2010. In all periods these amounts were recorded as reductions to SG&A expenses within the U.S. Retail Segment and increases to operations and marketing expenses within the U.S. Credit Card Segment.
(b) Amounts represent the portion of average gross credit card receivables funded by Target. These amounts exclude $3,959 million for the three months ended April 30, 2011, and $5,186 million for the three months ended May 1, 2010, of receivables funded by nonrecourse debt collateralized by credit card receivables.
(c) ROIC is return on invested capital, and this rate equals our segment profit divided by average gross credit card receivables funded by Target, expressed as an annualized rate.
(d) As an annualized percentage of average gross credit card receivables.
|
|
|
Three Months Ended |
|
Three Months Ended |
| ||||||
|
|
|
April 30, 2011 |
|
May 1, 2010 |
| ||||||
|
|
|
Yield |
|
Yield |
| ||||||
|
Spread Analysis - Total Portfolio |
|
Amount |
|
Annualized |
|
Amount |
|
Annualized |
| ||
|
(unaudited) |
|
(in millions) |
|
Rate |
|
(in millions) |
|
Rate |
| ||
|
EBIT |
|
$ |
213 |
|
13.2 |
%(c) |
$ |
134 |
|
7.1 |
%(c) |
|
LIBOR(a) |
|
|
|
0.2 |
% |
|
|
0.2 |
% | ||
|
Spread to LIBOR(b) |
|
$ |
209 |
|
13.0 |
%(c) |
$ |
129 |
|
6.9 |
%(c) |
(a) Balance-weighted average one-month LIBOR.
(b) Spread to LIBOR is a metric used to analyze the performance of our total credit card portfolio because the vast majority of our portfolio earns finance charge revenue at rates tied to the Prime Rate, and the interest rate on all nonrecourse debt securitized by credit card receivables is tied to LIBOR.
(c) As a percentage of average gross credit card receivables.
|
|
|
Three Months Ended |
|
|
| ||||
|
Receivables Rollforward Analysis |
|
April 30, |
|
May 1, |
|
|
| ||
|
(millions) (unaudited) |
|
2011 |
|
2010 |
|
Change |
| ||
|
Beginning gross credit card receivables |
|
$ |
6,843 |
|
$ |
7,982 |
|
(14.3 |
)% |
|
Charges at Target |
|
1,002 |
|
719 |
|
39.5 |
| ||
|
Charges at third parties |
|
1,251 |
|
1,426 |
|
(12.3 |
) | ||
|
Payments |
|
(3,001 |
) |
(2,989 |
) |
0.4 |
| ||
|
Other |
|
191 |
|
122 |
|
56.2 |
| ||
|
Period-end gross credit card receivables |
|
$ |
6,286 |
|
$ |
7,260 |
|
(13.4 |
)% |
|
Average gross credit card receivables |
|
$ |
6,463 |
|
$ |
7,547 |
|
(14.4 |
)% |
|
Accounts with three or more payments (60+ days) past due as a percentage of period-end gross credit card receivables |
|
3.3 |
% |
5.3 |
% |
|
| ||
|
Accounts with four or more payments (90+ days) past due as a percentage of period-end gross credit card receivables |
|
2.4 |
% |
3.8 |
% |
|
| ||
|
|
|
Three Months Ended |
|
|
| ||||
|
Allowance for Doubtful Accounts |
|
April 30, |
|
May 1, |
|
|
| ||
|
(millions) (unaudited) |
|
2011 |
|
2010 |
|
Change |
| ||
|
Allowance at beginning of period |
|
$ |
690 |
|
$ |
1,016 |
|
(32.1 |
)% |
|
Bad debt expense |
|
12 |
|
197 |
|
(93.8 |
) | ||
|
Write-offs(a) |
|
(184 |
) |
(318 |
) |
(42.0 |
) | ||
|
Recoveries(a) |
|
47 |
|
35 |
|
36.5 |
| ||
|
Allowance at end of period |
|
$ |
565 |
|
$ |
930 |
|
(39.2 |
)% |
|
As a percentage of period-end gross credit card receivables |
|
9.0 |
% |
12.8 |
% |
|
| ||
|
Net write-offs as a percentage of average gross credit card receivables (annualized) |
|
8.5 |
% |
15.0 |
% |
|
| ||
(a) Write-offs include the principal amount of losses (excluding accrued and unpaid finance charges), and recoveries include current period principal collections on previously written-off balances. These amounts combined represent net write-offs.
Subject to reclassification