UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)

August 19, 2008

 

Target Corporation

(Exact name of registrant as specified in its charter)

 

Minnesota

 

1-6049

 

41-0215170

(State or other jurisdiction
of incorporation)

 

(Commission File Number)

 

(IRS Employer
Identification No.)

 

 

 

 

 

1000 Nicollet Mall
Minneapolis, Minnesota

 

55403

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code  (612) 304-6073

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02.

Results of Operations and Financial Condition.

 

On August 19, 2008, Target Corporation issued a News Release containing its financial results for the three months ended August 2, 2008.  The News Release is attached hereto as Exhibit 99. Forward-looking statements in this release should be read in conjunction with the cautionary statements in Exhibit (99)A to Target Corporation’s 2008 first quarter Form 10-Q.

 

Item 8.01.

Other Events

 

On August 19, 2008, Target Corporation issued a News Release containing its financial results for the three months ended August 2, 2008.  The News Release is attached hereto as Exhibit 99. Forward-looking statements in this release should be read in conjunction with the cautionary statements in Exhibit (99)A to Target Corporation’s 2008 first quarter Form 10-Q.

 



 

Item 9.01.

Financial Statements and Exhibits.

 

 

 

(d)

Exhibits.

 

 

 

 

 

(99).

Target Corporation’s News Release dated August 19, 2008 containing its financial results for the three months ended August 2, 2008.

 

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

TARGET CORPORATION

 

 

Date:  August 19, 2008

/s/ Douglas A. Scovanner

 

 

Douglas A. Scovanner

 

Executive Vice President and Chief Financial Officer

 

 



 

EXHIBIT INDEX

 

Exhibit

 

Description

 

Method
of Filing

 

 

 

 

 

(99).

 

Target Corporation’s News Release dated August 19, 2008 containing its financial results for the three months ended August 2, 2008.

 

Filed Electronically

 


Exhibit 99

 

 

 

FOR IMMEDIATE RELEASE

 

TARGET CORPORATION SECOND QUARTER EARNINGS PER SHARE $0.82

 

                MINNEAPOLIS, August 19, 2008 — Target Corporation (NYSE:TGT) today reported net earnings of $634 million for the second quarter ended August 2, 2008, compared with $686 million in the second quarter ended August 4, 2007. Earnings per share in the second quarter increased 2.4 percent to $0.82 from $0.80 in the same period a year ago. All earnings per share figures refer to diluted earnings per share.

                “Our second quarter earnings per share modestly exceeded our expectations despite continued soft sales trends,” said Gregg Steinhafel, president and chief executive officer. “We continue to focus on driving our financial results through superior execution and discipline and by continuing to delight our guests with differentiated merchandise at a compelling value.”

 

Retail Segment Results

                Sales grew 5.7 percent in the second quarter to $15.0 billion in 2008 from $14.2 billion in 2007, due to the contribution from new store expansion slightly offset by a 0.4 percent decline in comparable store sales. Retail segment earnings before interest expense and income taxes (EBIT) were $1.1 billion in the second quarter of 2008, up 7.2 percent from $1.0 billion in 2007.

                Second quarter gross margin rate declined moderately from last year, driven by faster sales growth in lower margin rate categories, partially offset by increased margin rates within categories. Second quarter selling, general and administrative (SG&A) expense rate improved meaningfully from 2007, benefiting from continued productivity gains in stores, and disciplined control of expenses across the company.

 

Credit Card Segment Results

                The average receivables directly funded by Target in the second quarter declined 19.8 percent to $3.6 billion from $4.5 billion a year ago, reflecting the impact of JPMorgan Chase’s investment in the receivables portfolio, partially offset by a $1.8 billion increase in average receivables.

                Segment profitability in the quarter declined 65 percent to $74 million from $213 million in the same period a year ago, as a result of a decline in overall portfolio yield, combined with Target’s reduced investment in the portfolio. This yield decline is attributable to higher bad debt expense resulting from an increase in current period write-offs combined with additions to the reserve for future periods, as well as the impact on portfolio yields of lower interest rates.

                Second quarter segment pre-tax return on invested capital declined to 8.2 percent in 2008 from a quarterly record 18.8 percent in 2007.

 

--more -

 


 

TARGET CORPORATION

Page 2

 

Interest Expense and Taxes

                Net interest expense for the quarter increased $63 million from second quarter 2007, due to higher average debt balances supporting capital investment, share repurchase and the receivables portfolio, slightly offset by lower average debt portfolio interest rates. Over the past four quarters, the company has invested $4.0 billion in capital expenditures, $4.9 billion in share repurchase and grown its investment in accounts receivable by $1.7 billion.

                The company’s effective income tax rate for the second quarter was 36.8 percent in 2008, down from 38.4 percent in 2007, due in part to favorable resolution during the quarter of specific tax uncertainties. For the full year, the company expects an effective income tax rate in the range of 37.5 to 38.0 percent.

 

Share Repurchase

                In the second quarter, under the share repurchase program announced in November 2007, the company repurchased approximately 33.8 million shares of its common stock at an average price of $49.30, for a total investment of $1.7 billion.

                Program-to-date through the end of the second quarter, the company has acquired approximately 90.8 million shares of its common stock at an average price per share of $51.61, reflecting a total investment of approximately $4.7 billion. The company expects to complete the program by the end of 2010 or sooner, and has nearly attained its previously stated expectation to complete half or more of the $10 billion authorization by the end of 2008.

 

Miscellaneous

                Target Corporation will webcast its second 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 “webcasts”). A telephone replay of the call will be available beginning at approximately 11:30am CDT today through the end of business on August 21, 2008. The replay number is (800) 642-1687 (passcode: 7389853).

                Forward-looking statements in this release, including expectations for effective tax rate and timing to complete the new share repurchase program, should be read in conjunction with the cautionary statements in Exhibit (99)A to the company’s first quarter 2008 Form 10-Q.

                Target Corporation's retail segment includes large, general merchandise and food discount stores, and a fully integrated on-line business called Target.com. In addition, the company operates a credit card segment that offers branded proprietary and Visa credit card products. The company currently operates 1,648 Target stores in 47 states.

Target Corporation news releases are available at www.target.com.

###

(Tables Follow)

 

Contacts: John Hulbert (Investors)

Lena Michaud (Financial Media)

(612) 761-6627

(612) 761-6796

 

 


 

TARGET CORPORATION

 

Consolidated Statements of Operations

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

Aug 2,

 

Aug 4,

 

 

 

Aug 2,

 

Aug 4,

 

 

 

(millions, except per share data) (unaudited)

 

2008

 

2007

 

Change

 

2008

 

2007

 

Change

 

Sales

 

$

14,971

 

$

14,167

 

5.7

  %

$

29,273

 

$

27,790

 

5.3

  %

Credit card revenues

 

501

 

453

 

10.4

 

1,001

 

871

 

14.9

 

Total revenues

 

15,472

 

14,620

 

5.8

 

30,274

 

28,661

 

5.6

 

Cost of sales

 

10,304

 

9,696

 

6.3

 

20,202

 

19,112

 

5.7

 

Selling, general and administrative expenses

 

3,153

 

3,071

 

2.7

 

6,190

 

5,934

 

4.3

 

Credit card expenses

 

347

 

182

 

90.9

 

620

 

351

 

76.5

 

Depreciation and amortization

 

448

 

404

 

11.0

 

884

 

796

 

11.1

 

Earnings before interest expense and income taxes

 

1,220

 

1,267

 

(3.8

)

2,378

 

2,468

 

(3.6

)

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonrecourse debt collateralized by credit card receivables

 

48

 

30

 

59.3

 

67

 

57

 

18.0

 

Other interest expense

 

179

 

125

 

43.0

 

369

 

237

 

55.9

 

Interest income

 

(10

)

(1

)

682.4

 

(19

)

(4

)

429.5

 

Net interest expense

 

217

 

154

 

40.8

 

417

 

290

 

44.0

 

Earnings before income taxes

 

1,003

 

1,113

 

(9.9

)

1,961

 

2,178

 

(10.0

)

Provision for income taxes

 

369

 

427

 

(13.6

)

724

 

841

 

(13.9

)

Net earnings

 

$

634

 

$

686

 

(7.6

) %

$

1,237

 

$

1,337

 

(7.5

) %

Basic earnings per share

 

$

0.82

 

$

0.81

 

2.1

  %

$

1.57

 

$

1.57

 

0.2

  %

Diluted earnings per share

 

$

0.82

 

$

0.80

 

2.4

  %

$

1.56

 

$

1.55

 

0.4

  %

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

770.3

 

850.8

 

 

 

787.9

 

853.4

 

 

 

Diluted

 

773.9

 

857.4

 

 

 

791.8

 

860.1

 

 

 

 

 

Subject to reclassification


 

TARGET CORPORATION

 

Consolidated Statements of Financial Position

 

 

Aug 2,

 

Feb 2,

 

Aug 4,

 

(millions) (unaudited)

 

2008

 

2008

 

2007

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,527

 

$

2,450

 

$

555

 

Credit card receivables, net of allowance of $661, $570 and $509

 

7,980

 

8,054

 

6,397

 

Inventory

 

7,313

 

6,780

 

6,645

 

Other current assets

 

1,800

 

1,622

 

1,535

 

Total current assets

 

18,620

 

18,906

 

15,132

 

Property and equipment

 

 

 

 

 

 

 

Land

 

5,687

 

5,522

 

5,239

 

Buildings and improvements

 

19,511

 

18,329

 

16,483

 

Fixtures and equipment

 

4,031

 

3,858

 

3,516

 

Computer hardware and software

 

2,498

 

2,421

 

2,209

 

Construction-in-progress

 

1,851

 

1,852

 

2,848

 

Accumulated depreciation

 

(8,426

)

(7,887

)

(7,268

)

Property and equipment, net

 

25,152

 

24,095

 

23,027

 

Other noncurrent assets

 

1,368

 

1,559

 

1,307

 

Total assets

 

$

45,140

 

$

44,560

 

$

39,466

 

Liabilities and shareholders’ investment

 

 

 

 

 

 

 

Accounts payable

 

$

6,606

 

$

6,721

 

$

6,101

 

Accrued and other current liabilities

 

3,030

 

3,097

 

2,761

 

Unsecured debt and other borrowings

 

1,723

 

1,464

 

2,160

 

Nonrecourse debt collateralized by credit card receivables

 

-

 

500

 

-

 

Total current liabilities

 

11,359

 

11,782

 

11,022

 

Unsecured debt and other borrowings

 

12,465

 

13,226

 

8,252

 

Nonrecourse debt collateralized by credit card receivables

 

5,467

 

1,900

 

1,900

 

Deferred income taxes

 

534

 

470

 

408

 

Other noncurrent liabilities

 

1,858

 

1,875

 

1,930

 

Total noncurrent liabilities

 

20,324

 

17,471

 

12,490

 

Shareholders’ investment

 

 

 

 

 

 

 

Common stock

 

63

 

68

 

71

 

Additional paid-in capital

 

2,707

 

2,656

 

2,610

 

Retained earnings

 

10,861

 

12,761

 

13,451

 

Accumulated other comprehensive loss

 

(174

)

(178

)

(178

)

Total shareholders’ investment

 

13,457

 

15,307

 

15,954

 

Total liabilities and shareholders’ investment

 

$

45,140

 

$

44,560

 

$

39,466

 

Common shares outstanding

 

755.0

 

818.7

 

847.8

 

 

 

Subject to reclassification


 

TARGET CORPORATION

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

Six Months Ended

 

 

 

Aug 2,

 

Aug 4,

 

(millions) (unaudited)

 

2008

 

2007

 

Operating activities

 

 

 

 

 

Net earnings

 

$

1,237

 

$

1,337

 

Reconciliation to cash flow

 

 

 

 

 

Depreciation and amortization

 

884

 

796

 

Share-based compensation expense

 

37

 

42

 

Deferred income taxes

 

14

 

(65

)

Bad debt provision

 

437

 

182

 

Loss on disposal of property and equipment, net

 

24

 

35

 

Other non-cash items affecting earnings

 

106

 

61

 

Changes in operating accounts providing / (requiring) cash:

 

 

 

 

 

Accounts receivable originated at Target

 

(150

)

(64

)

Inventory

 

(533

)

(391

)

Other current assets

 

(104

)

(125

)

Other noncurrent assets

 

(17

)

(12

)

Accounts payable

 

(115

)

(475

)

Accrued and other current liabilities

 

(179

)

(161

)

Other noncurrent liabilities

 

(47

)

43

 

Other

 

160

 

-

 

Cash flow provided by operations

 

1,754

 

1,203

 

Investing activities

 

 

 

 

 

Expenditures for property and equipment

 

(1,956

)

(2,363

)

Proceeds from disposal of property and equipment

 

17

 

16

 

Change in accounts receivable originated at third parties

 

(213

)

(321

)

Other

 

(53

)

(69

)

Cash flow required for investing activities

 

(2,205

)

(2,737

)

Financing activities

 

 

 

 

 

Change in commercial paper, net

 

-

 

1,586

 

Reductions of short-term notes payable

 

(500

)

-

 

Additions to long-term debt

 

3,557

 

1,900

 

Reductions of long-term debt

 

(503

)

(1,253

)

Dividends paid

 

(224

)

(205

)

Repurchase of stock

 

(2,815

)

(940

)

Stock option exercises and related tax benefit

 

21

 

195

 

Other

 

(8

)

(7

)

Cash flow (required for) / provided by financing activities

 

(472

)

1,276

 

Net decrease in cash and cash equivalents

 

(923

)

(258

)

Cash and cash equivalents at beginning of period

 

2,450

 

813

 

Cash and cash equivalents at end of period

 

$

1,527

 

$

555

 

 

Subject to reclassification


 

TARGET CORPORATION

 

Retail Segment

 

Retail Segment Results

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

Aug 2,

 

Aug 4,

 

 

 

Aug 2,

 

Aug 4,

 

 

 

(millions) (unaudited)

 

2008

 

2007

 

Change

 

2008

 

2007

 

Change

 

Sales

 

$

14,971

 

$

14,167

 

5.7

 %

$

29,273

 

$

27,790

 

5.3

 %

Cost of sales

 

10,304

 

9,696

 

6.3

 

20,202

 

19,112

 

5.7

 

Gross margin

 

4,667

 

4,471

 

4.4

 

9,071

 

8,678

 

4.5

 

SG&A expenses (a)

 

3,126

 

3,046

 

2.6

 

6,139

 

5,885

 

4.3

 

EBITDA

 

1,541

 

1,425

 

8.2

 

2,932

 

2,793

 

5.0

 

Depreciation and amortization

 

443

 

401

 

10.8

 

876

 

788

 

11.1

 

EBIT

 

$

1,098

 

$

1,024

 

7.2

 %

$

2,056

 

$

2,005

 

2.6

 %

EBITDA is earnings before interest expense, income taxes, depreciation and amortization.

EBIT is earnings before interest expense and income taxes.

(a) New account and loyalty rewards redeemed by our guests reduce reported sales. Our Retail Segment charges the cost of these discounts to our Credit Card Segment, and the reimbursements of $27 million and $51 million for the three and six months ended August, 2 2008, respectively, and $25 million and $49 million for the three and six months ended August 4, 2007, respectively, are recorded as a reduction to SG&A expenses within the Retail Segment.

 

 

Retail Segment Rate Analysis

 

Three Months Ended

 

Six Months Ended

 

 

Aug 2,

 

Aug 4,

 

Aug 2,

 

Aug 4,

 

(unaudited)

 

2008

 

2007

 

2008

 

2007

 

Gross margin rate

 

31.2%

 

31.6%

 

31.0%

 

31.2%

 

SG&A expense rate

 

20.9%

 

21.5%

 

21.0%

 

21.2%

 

EBITDA margin rate

 

10.3%

 

10.1%

 

10.0%

 

10.0%

 

Depreciation and amortization expense rate

 

3.0%

 

2.8%

 

3.0%

 

2.8%

 

EBIT margin rate

 

7.3%

 

7.2%

 

7.0%

 

7.2%

 

 

 

Comparable-Store Sales

 

Three Months Ended

 

Six Months Ended

 

 

 

Aug 2,

 

Aug 4,

 

Aug 2,

 

Aug 4,

 

(unaudited)

 

2008

 

2007

 

2008

 

2007

 

Comparable-store sales

 

(0.4)%

 

4.9%

 

(0.6)%

 

4.6%

 

Comparable-store sales increases or decreases are calculated by comparing sales in current year periods with comparable, prior fiscal-year periods of equivalent length. The method of calculating comparable-store sales varies across the retail industry.

 

 

Number of Stores and Retail Square Feet

 

Number of Stores

 

Retail Square Feet (b)

 

 

 

Aug 2,

 

Aug 4,

 

Aug 2,

 

Aug 4,

 

 

 

(unaudited)

 

2008

 

2007

 

2008

 

2007

 

Change

 

Target general merchandise stores

 

1,417

 

1,345

 

176,171

 

165,672

 

6.3%

 

SuperTarget stores

 

231

 

192

 

40,828

 

33,890

 

20.5%

 

Total

 

1,648

 

1,537

 

216,999

 

199,562

 

8.7%

 

(b)  In thousands; reflects total square feet, less office, distribution center and vacant space.

 

 

Subject to reclassification


 

TARGET CORPORATION

 

Credit Card Segment

 

Credit Card Segment Results

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

Aug 2,

 

Aug 4,

 

 

 

Aug 2,

 

Aug 4,

 

 

 

(millions) (unaudited)

 

2008

 

2007

 

Change

 

2008

 

2007

 

Change

 

Finance charge revenue

 

$

340

 

$

305

 

11.3

 %

$

694

 

$

601

 

15.5

 %

Late fees and other revenue

 

121

 

109

 

10.4

 

229

 

197

 

15.8

 

Third party merchant fees

 

40

 

39

 

3.3

 

78

 

73

 

8.0

 

Total revenues

 

501

 

453

 

10.4

 

1,001

 

871

 

14.9

 

Bad debt expense

 

256

 

95

 

168.9

 

437

 

182

 

140.3

 

Operations and marketing expenses (a)

 

118

 

112

 

5.9

 

234

 

218

 

7.3

 

Depreciation and amortization

 

5

 

3

 

4.1

 

8

 

8

 

8.9

 

Total expenses

 

379

 

210

 

79.5

 

679

 

408

 

66.5

 

EBIT

 

122

 

243

 

(49.5

)

322

 

463

 

(30.6

)

Interest expense on nonrecourse debt collateralized by credit card receivables

 

48

 

30

 

59.2

 

67

 

57

 

17.9

 

Segment Profitability

 

$

74

 

$

213

 

(65.0

) %

$

255

 

$

406

 

(37.3

) %

Average receivables funded by Target (b)

 

$

3,636

 

$

4,534

 

 

 

$

4,952

 

$

4,648

 

 

 

Segment pretax ROIC (c)

 

8.2%

 

18.8%

 

 

 

10.3%

 

17.5%

 

 

 

 

(a) New account and loyalty rewards redeemed by our guests reduce reported sales. Our Retail Segment charges the cost of these discounts to our Credit Card Segment, and the reimbursements of $27 million and $51 million for the three and six months ended August, 2 2008, respectively, and $25 million and $49 million for the three and six months ended August 4, 2007, respectively, are recorded as an increase to Operations and Marketing expenses within the Credit Card Segment.

(b) Amounts represent the portion of average credit card receivables funded by Target. These amounts exclude $4,875 million and $3,528 million for the three and six months ended August 2, 2008, respectively, and $2,184 million and $2,022 million for the three and six months ended August 4, 2007, respectively, of receivables funded by nonrecourse debt collateralized by credit card receivables.

(c) ROIC is return on invested capital, and this rate represents segment profitability divided by average receivables funded by Target, expressed as an annualized rate.

 

Spread Analysis - Total Portfolio

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

Six Months Ended

 

 

 

Aug 2, 2008

 

Aug 4, 2007

 

Aug 2, 2008

 

Aug 4, 2007

 

 

 

Yield

 

Yield

 

Yield

 

Yield

 

 

 

Amount

 

Annualized

 

Amount

 

Annualized

 

Amount

 

Annualized

 

Amount

 

Annualized

 

(unaudited)

 

(in millions)

 

Rate

 

(in millions)

 

Rate

 

(in millions)

 

Rate

 

(in millions)

 

Rate

 

EBIT

 

$

122

 

5.8%

(b)

$

243

 

14.5%

(b)

$

322

 

7.6%

(b)

$

463

 

13.9

%(b)

LIBOR (a)

 

 

 

2.5%

 

 

 

5.3%

 

 

 

2.7%

 

 

 

5.3

%

Spread to LIBOR (c)

 

$

70

 

3.3%

(b)

$

154

 

9.2%

(b)

$

208

 

4.9%

(b)

$

286

 

8.6

%(b)

 

(a) Balance-weighted average one-month LIBOR rate

(b) As a percentage of average receivables

(c) 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.

 

Receivables Rollforward Analysis

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

Aug 2

,

Aug 4

,

 

 

Aug 2

,

Aug 4

,

 

 

(millions) (unaudited)

 

2008

 

2007

 

Change

 

2008

 

2007

 

Change

 

Beginning receivables

 

$

8,420

 

$

6,510

 

29.3

 %

$

8,624

 

$

6,711

 

28.5

 %

Charges at Target

 

1,021

 

1,049

 

(2.6

)

1,968

 

1,991

 

(1.2

)

Charges at third parties

 

2,258

 

2,202

 

2.5

 

4,406

 

4,091

 

7.7

 

Payments

 

(3,358

)

(3,205

)

4.8

 

(6,988

)

(6,549

)

6.7

 

Other

 

300

 

350

 

(14.2

)

631

 

662

 

(4.6

)

Period-end receivables

 

$

8,641

 

$

6,906

 

25.1

 %

$

8,641

 

$

6,906

 

25.1

 %

Average receivables

 

$

8,511

 

$

6,718

 

26.7

 %

$

8,479

 

$

6,670

 

27.1

 %

Accounts with three or more payments (60+ days) past due as a percentage of period-end receivables

 

4.5%

 

3.5%

 

 

 

4.5%

 

3.5%

 

 

 

Accounts with four or more payments (90+ days) past due as a percentage of period-end receivables

 

3.1%

 

2.3%

 

 

 

3.1%

 

2.3%

 

 

 

 

Allowance for Doubtful Accounts

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

Aug 2,

 

Aug 4,

 

 

 

Aug 2,

 

Aug 4,

 

 

 

(millions) (unaudited)

 

2008

 

2007

 

Change

 

2008

 

2007

 

Change

 

Allowance at beginning of period

 

$

590

 

$

504

 

17.2

 %

$

570

 

$

517

 

10.4

 %

Bad debt provision

 

256

 

95

 

168.9

 

437

 

182

 

140.3

 

Net write-offs

 

(185

)

(90

)

106.2

 

(346

)

(190

)

82.8

 

Allowance at end of period

 

$

661

 

$

509

 

29.8

 %

$

661

 

$

509

 

29.8

 %

As a percentage of period-end receivables

 

7.6%

 

7.4

%

 

 

7.6%

 

7.4

%

 

 

Net write-offs as a percentage
of average receivables (annualized)

 

8.7%

 

5.4

%

 

 

8.2%

 

5.7

%

 

 

 

Subject to reclassification