21/08/2024 | Press release | Distributed by Public on 21/08/2024 10:39
MINNEAPOLIS, Aug. 21, 2024PRNewswire/ --
For additional media materials, please visit:
https://corporate.target.com/news-features/article/2024/08/q2-2024-earnings
Target Corporation (NYSE: TGT) today announced its second quarter 2024 financial results, which reflected a return to topline growth and strong profit performance.
The Company reported second quarter GAAP and Adjusted earnings per share1 (EPS) of $2.57, compared with $1.80in 2023. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.
1Adjusted EPS, a non-GAAP financial measure, excludes the impact of certain discretely managed items, when applicable. See the tables of this release for additional information. |
"We made a commitment to get back to growth in the second quarter, and the team delivered, all while expanding operating margins and growing EPS by more than 40% compared to last year. Importantly, our growth was driven entirely by traffic in stores and our digital channels, with double-digit growth in our same-day delivery services," said Brian Cornell, chair and chief executive officer of Target Corporation. "We also saw improving trends across our discretionary categories, most notably in apparel, and we're seeing continued strength in beauty. Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target."
Guidance
For the third quarter, the Company expects a 0 to 2 percent increase in its comparable sales, and GAAP and Adjusted EPS of $2.10to $2.40.
While the Company believes its full-year guidance range of a 0 to 2 percent increase in its comparable sales remains appropriate, it now believes the increase will more likely be in the lower half of that range. However, based on strong profit performance in the front half of the year, the Company now expects full-year GAAP and Adjusted EPS of $9.00to $9.70, up from the prior range of $8.60to $9.60.
Operating Results
Comparable sales increased 2.0 percent in the second quarter, reflecting a comparable store sales increase of 0.7 percent and a comparable digital sales increase of 8.7 percent. Total revenue of $25.5 billionin the second quarter was 2.7 percent higher than last year, reflecting a total sales increase of 2.6 percent and a 10.8 percent increase in other revenue. Second quarter operating income of $1.6 billionwas 36.6 percent higher than last year, driven by sales growth and a higher gross margin rate.
Second quarter operating income margin rate was 6.4 percent in 2024, compared with 4.8 percent in 2023. Second quarter gross margin rate was 28.9 percent, compared with 27.0 percent in 2023, reflecting the net impact of merchandising activities, including cost improvements that more than offset higher promotional markdown rates, combined with favorable category mix and lower book to physical inventory adjustments as compared to the prior year, partially offset by higher digital fulfillment and supply chain costs. Second quarter SG&A expense rate was 21.2 percent in 2024, compared with 20.9 percent in 2023, reflecting the combined impact of higher costs, including continued investments in pay and benefits, partially offset by disciplined cost management.
Interest Expense and Taxes
The Company's second quarter 2024 net interest expense was $110 million, compared with $141 millionlast year, primarily driven by an increase in interest income reflecting higher cash balances year-over-year.
Second quarter 2024 effective income tax rate was 22.9 percent, compared with the prior year rate of 22.2 percent, reflecting higher pretax earnings and lower discrete benefits as compared to the prior year.
Capital Deployment and Return on Invested Capital
The Company paid dividends of $509 millionin the second quarter, compared with $499 millionlast year, reflecting a 1.9 percent increase in the dividend per share.
The Company repurchased $155 millionof its shares in the second quarter, retiring 1.1 million shares of common stock at an average price of $145.94. As of the end of the quarter, the Company had approximately $9.5 billionof remaining capacity under the repurchase program approved by Target's Board of Directors in August 2021.
For the trailing twelve months through second quarter 2024, after-tax return on invested capital (ROIC) was 16.6 percent, compared with 13.7 percent for the trailing twelve months through second quarter 2023. The increase in ROIC reflects higher operating income, partially offset by higher average invested capital. The tables in this release provide additional information about the Company's ROIC calculation.
Webcast Details
Target will webcast its second quarter earnings conference call at 7:00 a.m. CTtoday. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on "Q2 2024 Target Corporation Earnings Conference Call" under "Events & Presentations"). A replay of the webcast will be provided when available. The replay number is 1-866-405-7299.
Miscellaneous
Statements in this release regarding the Company's future financial performance, including its fiscal 2024 third quarter and full-year guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended February 3, 2024. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.
About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website (corporate.target.com) and press center.
TARGET CORPORATION |
||||||||||||
|
||||||||||||
Consolidated Statements of Operations |
||||||||||||
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||
(millions, except per share data) (unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
Change |
|
August 3, 2024 |
|
July 29, 2023 |
|
Change |
Sales |
|
$ 25,021 |
|
$ 24,384 |
|
2.6 % |
|
$ 49,164 |
|
$ 49,332 |
|
(0.3) % |
Other revenue |
|
431 |
|
389 |
|
10.8 |
|
819 |
|
763 |
|
7.4 |
Total revenue |
|
25,452 |
|
24,773 |
|
2.7 |
|
49,983 |
|
50,095 |
|
(0.2) |
Cost of sales |
|
17,799 |
|
17,798 |
|
0.0 |
|
35,248 |
|
36,184 |
|
(2.6) |
Selling, general and administrative expenses |
|
5,392 |
|
5,184 |
|
4.0 |
|
10,560 |
|
10,209 |
|
3.4 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) |
|
626 |
|
594 |
|
5.3 |
|
1,244 |
|
1,177 |
|
5.7 |
Operating income |
|
1,635 |
|
1,197 |
|
36.6 |
|
2,931 |
|
2,525 |
|
16.1 |
Net interest expense |
|
110 |
|
141 |
|
(22.4) |
|
216 |
|
288 |
|
(25.1) |
Net other income |
|
(20) |
|
(16) |
|
20.3 |
|
(49) |
|
(39) |
|
24.2 |
Earnings before income taxes |
|
1,545 |
|
1,072 |
|
44.1 |
|
2,764 |
|
2,276 |
|
21.4 |
Provision for income taxes |
|
353 |
|
237 |
|
48.7 |
|
630 |
|
491 |
|
28.2 |
Net earnings |
|
$ 1,192 |
|
$ 835 |
|
42.7 % |
|
$ 2,134 |
|
$ 1,785 |
|
19.6 % |
Basic earnings per share |
|
$ 2.58 |
|
$ 1.81 |
|
42.5 % |
|
$ 4.62 |
|
$ 3.87 |
|
19.3 % |
Diluted earnings per share |
|
$ 2.57 |
|
$ 1.80 |
|
42.4 % |
|
$ 4.60 |
|
$ 3.86 |
|
19.3 % |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
462.5 |
|
461.6 |
|
0.2 % |
|
462.4 |
|
461.3 |
|
0.2 % |
Diluted |
|
463.5 |
|
462.5 |
|
0.2 % |
|
463.7 |
|
462.7 |
|
0.2 % |
Antidilutive shares |
|
2.3 |
|
2.9 |
|
|
|
1.8 |
|
2.4 |
|
|
Dividends declared per share |
|
$ 1.12 |
|
$ 1.10 |
|
1.8 % |
|
$ 2.22 |
|
$ 2.18 |
|
1.8 % |
TARGET CORPORATION |
||||||
|
||||||
Consolidated Statements of Financial Position |
||||||
(millions, except footnotes) (unaudited) |
|
August 3, 2024 |
|
February 3, 2024 |
|
July 29, 2023 |
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ 3,497 |
|
$ 3,805 |
|
$ 1,617 |
Inventory |
|
12,604 |
|
11,886 |
|
12,684 |
Other current assets |
|
1,817 |
|
1,807 |
|
1,797 |
Total current assets |
|
17,918 |
|
17,498 |
|
16,098 |
Property and equipment |
|
|
|
|
|
|
Land |
|
6,645 |
|
6,547 |
|
6,504 |
Buildings and improvements |
|
38,324 |
|
37,066 |
|
35,889 |
Fixtures and equipment |
|
8,690 |
|
8,765 |
|
7,936 |
Computer hardware and software |
|
3,437 |
|
3,428 |
|
3,178 |
Construction-in-progress |
|
830 |
|
1,703 |
|
2,641 |
Accumulated depreciation |
|
(24,851) |
|
(24,413) |
|
(23,201) |
Property and equipment, net |
|
33,075 |
|
33,096 |
|
32,947 |
Operating lease assets |
|
3,545 |
|
3,362 |
|
2,840 |
Other noncurrent assets |
|
1,457 |
|
1,400 |
|
1,321 |
Total assets |
|
$ 55,995 |
|
$ 55,356 |
|
$ 53,206 |
Liabilities and shareholders' investment |
|
|
|
|
|
|
Accounts payable |
|
$ 12,595 |
|
$ 12,098 |
|
$ 12,278 |
Accrued and other current liabilities |
|
5,749 |
|
6,090 |
|
5,948 |
Current portion of long-term debt and other borrowings |
|
1,640 |
|
1,116 |
|
1,106 |
Total current liabilities |
|
19,984 |
|
19,304 |
|
19,332 |
Long-term debt and other borrowings |
|
13,654 |
|
14,922 |
|
14,926 |
Noncurrent operating lease liabilities |
|
3,444 |
|
3,279 |
|
2,798 |
Deferred income taxes |
|
2,495 |
|
2,480 |
|
2,334 |
Other noncurrent liabilities |
|
1,989 |
|
1,939 |
|
1,826 |
Total noncurrent liabilities |
|
21,582 |
|
22,620 |
|
21,884 |
Shareholders' investment |
|
|
|
|
|
|
Common stock |
|
38 |
|
38 |
|
38 |
Additional paid-in capital |
|
6,831 |
|
6,761 |
|
6,610 |
Retained earnings |
|
8,030 |
|
7,093 |
|
5,767 |
Accumulated other comprehensive loss |
|
(470) |
|
(460) |
|
(425) |
Total shareholders' investment |
|
14,429 |
|
13,432 |
|
11,990 |
Total liabilities and shareholders' investment |
|
$ 55,995 |
|
$ 55,356 |
|
$ 53,206 |
|
Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 461,600,215, 461,675,441, and 461,600,640 shares issued and outstanding as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively. |
|
Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. |
TARGET CORPORATION |
||||
|
||||
Consolidated Statements of Cash Flows |
||||
|
|
Six Months Ended |
||
(millions) (unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
Operating activities |
|
|
|
|
Net earnings |
|
$ 2,134 |
|
$ 1,785 |
Adjustments to reconcile net earnings to cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
1,461 |
|
1,350 |
Share-based compensation expense |
|
149 |
|
107 |
Deferred income taxes |
|
16 |
|
141 |
Noncash losses / (gains) and other, net |
|
22 |
|
11 |
Changes in operating accounts: |
|
|
|
|
Inventory |
|
(718) |
|
815 |
Other assets |
|
(53) |
|
62 |
Accounts payable |
|
522 |
|
(1,137) |
Accrued and other liabilities |
|
(194) |
|
264 |
Cash provided by operating activities |
|
3,339 |
|
3,398 |
Investing activities |
|
|
|
|
Expenditures for property and equipment |
|
(1,313) |
|
(2,825) |
Proceeds from disposal of property and equipment |
|
2 |
|
6 |
Other investments |
|
6 |
|
(2) |
Cash required for investing activities |
|
(1,305) |
|
(2,821) |
Financing activities |
|
|
|
|
Reductions of long-term debt |
|
(1,076) |
|
(72) |
Dividends paid |
|
(1,017) |
|
(996) |
Repurchase of stock |
|
(155) |
|
- |
Shares withheld for taxes on share-based compensation |
|
(94) |
|
(121) |
Cash required for financing activities |
|
(2,342) |
|
(1,189) |
Net decrease in cash and cash equivalents |
|
(308) |
|
(612) |
Cash and cash equivalents at beginning of period |
|
3,805 |
|
2,229 |
Cash and cash equivalents at end of period |
|
$ 3,497 |
|
$ 1,617 |
TARGET CORPORATION |
||||||||
|
||||||||
Operating Results |
||||||||
Rate Analysis |
|
Three Months Ended |
|
Six Months Ended |
||||
(unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Gross margin rate |
|
28.9 % |
|
27.0 % |
|
28.3 % |
|
26.7 % |
SG&A expense rate |
|
21.2 |
|
20.9 |
|
21.1 |
|
20.4 |
Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales) |
|
2.5 |
|
2.4 |
|
2.5 |
|
2.3 |
Operating income margin rate |
|
6.4 |
|
4.8 |
|
5.9 |
|
5.0 |
|
Note: Gross margin rate is calculated as gross margin (sales less cost of sales) divided by sales. All other rates are calculated by dividing the applicable amount by total revenue. Other revenue includes $144 million and $286 million of profit-sharing income under our credit card program agreement for the three and six months ended August 3, 2024, respectively, and $169 million and $343 million for the three and six months ended July 29, 2023, respectively. |
Comparable Sales |
|
Three Months Ended |
|
Six Months Ended |
||||
(unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Comparable sales change |
|
2.0 % |
|
(5.4) % |
|
(0.9) % |
|
(2.8) % |
Drivers of change in comparable sales |
|
|
|
|
|
|
|
|
Number of transactions (traffic) |
|
3.0 |
|
(4.8) |
|
0.6 |
|
(2.0) |
Average transaction amount |
|
(0.9) |
|
(0.7) |
|
(1.4) |
|
(0.8) |
|
|
|
|
|
||||
Comparable Sales by Channel |
|
Three Months Ended |
|
Six Months Ended |
||||
(unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Stores originated comparable sales change |
|
0.7 % |
|
(4.3) % |
|
(2.1) % |
|
(1.8) % |
Digitally originated comparable sales change |
|
8.7 |
|
(10.5) |
|
5.0 |
|
(7.0) |
|
|
|
|
|
||||
Sales by Channel |
|
Three Months Ended |
|
Six Months Ended |
||||
(unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Stores originated |
|
82.1 % |
|
83.1 % |
|
81.9 % |
|
82.8 % |
Digitally originated |
|
17.9 |
|
16.9 |
|
18.1 |
|
17.2 |
Total |
|
100 % |
|
100 % |
|
100 % |
|
100 % |
|
|
|
|
|
|
|
|
|
Sales by Fulfillment Channel |
|
Three Months Ended |
|
Six Months Ended |
||||
(unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Stores |
|
97.9 % |
|
97.6 % |
|
97.8 % |
|
97.4 % |
Other |
|
2.1 |
|
2.4 |
|
2.2 |
|
2.6 |
Total |
|
100 % |
|
100 % |
|
100 % |
|
100 % |
|
Note: Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping merchandise from stores to guests, Order Pickup, Drive Up, and Shipt. |
Target Circle Card Penetration |
|
Three Months Ended |
|
Six Months Ended |
||||
(unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Total Target Circle Card Penetration |
|
17.7 % |
|
18.6 % |
|
17.9 % |
|
18.8 % |
Number of Stores and Retail Square Feet |
|
Number of Stores |
|
Retail Square Feet(a) |
||||||||
(unaudited) |
|
August 3, |
|
February 3, |
|
July 29, |
|
August 3, |
|
February 3, |
|
July 29, |
170,000 or more sq. ft. |
|
273 |
|
273 |
|
274 |
|
48,824 |
|
48,824 |
|
48,995 |
50,000 to 169,999 sq. ft. |
|
1,549 |
|
1,542 |
|
1,534 |
|
193,705 |
|
192,908 |
|
191,947 |
49,999 or less sq. ft. |
|
144 |
|
141 |
|
147 |
|
4,334 |
|
4,207 |
|
4,404 |
Total |
|
1,966 |
|
1,956 |
|
1,955 |
|
246,863 |
|
245,939 |
|
245,346 |
|
|
(a) |
In thousands; reflects total square feet less office, supply chain facilities, and vacant space. |
TARGET CORPORATION
Reconciliation of Non-GAAP Financial Measures
To provide additional transparency, we disclose non-GAAP adjusted diluted earnings per share (Adjusted EPS). When applicable, this metric excludes certain discretely managed items. However, there are no adjustments in any period presented. We believe this information is useful in providing period-to-period comparisons of the results of our operations. This measure is not in accordance with, or an alternative to, U.S. GAAP. The most comparable GAAP measure is diluted earnings per share. Adjusted EPS should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate Adjusted EPS differently, limiting the usefulness of the measure for comparisons with other companies.
Reconciliation of Non-GAAP Adjusted EPS |
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||
|
August 3, 2024 |
|
July 29, 2023 |
|
Change |
|
August 3, 2024 |
|
July 29, 2023 |
|
Change |
|
GAAP and adjusted diluted earnings per share |
|
$ 2.57 |
|
$ 1.80 |
|
42.4 % |
|
$ 4.60 |
|
$ 3.86 |
|
19.3 % |
Reconciliation of Non-GAAP Adjusted EPS Guidance |
Guidance |
||
(per share) (unaudited) |
Q3 2024 |
|
Full Year 2024 |
GAAP diluted earnings per share guidance |
$2.10 - $2.40 |
|
$9.00 - $9.70 |
Estimated adjustments |
|
|
|
Other (a) |
$ - |
|
$ - |
Adjusted diluted earnings per share guidance |
$2.10 - $2.40 |
|
$9.00 - $9.70 |
|
|
(a) |
Third quarter and full-year 2024 GAAP EPS may include the impact of certain discrete items, which will be excluded in calculating Adjusted EPS. The guidance does not currently reflect any such discrete items. In the past, these items have included losses on the early retirement of debt and certain other items that are discretely managed. |
Earnings before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation and amortization (EBITDA) are non-GAAP financial measures. We believe these measures provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and, for EBITDA, capital investment. These measures are not in accordance with, or an alternative to, GAAP. The most comparable GAAP measure is net earnings. EBIT and EBITDA should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate EBIT and EBITDA differently, limiting the usefulness of the measures for comparisons with other companies.
EBIT and EBITDA |
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||
(dollars in millions) (unaudited) |
|
August 3, 2024 |
|
July 29, 2023 |
|
Change |
|
August 3, 2024 |
|
July 29, 2023 |
|
Change |
Net earnings |
|
$ 1,192 |
|
$ 835 |
|
42.7 % |
|
$ 2,134 |
|
$ 1,785 |
|
19.6 % |
+ Provision for income taxes |
|
353 |
|
237 |
|
48.7 |
|
630 |
|
491 |
|
28.2 |
+ Net interest expense |
|
110 |
|
141 |
|
(22.4) |
|
216 |
|
288 |
|
(25.1) |
EBIT |
|
$ 1,655 |
|
$ 1,213 |
|
36.3 % |
|
$ 2,980 |
|
$ 2,564 |
|
16.2 % |
+ Total depreciation and amortization (a) |
|
743 |
|
683 |
|
8.8 |
|
1,461 |
|
1,350 |
|
8.2 |
EBITDA |
|
$ 2,398 |
|
$ 1,896 |
|
26.4 % |
|
$ 4,441 |
|
$ 3,914 |
|
13.5 % |
|
|
(a) |
Represents total depreciation and amortization, including amounts classified within Depreciation and Amortization and within Cost of Sales. |
We have also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.
After-Tax Return on Invested Capital |
|
|
||||
(dollars in millions) (unaudited) |
|
|
|
|
||
|
|
Trailing Twelve Months |
|
|
||
Numerator |
|
August 3, 2024 (a) |
|
July 29, 2023 |
|
|
Operating income |
|
$ 6,113 |
|
$ 4,706 |
|
|
+ Net other income |
|
102 |
|
65 |
|
|
EBIT |
|
6,215 |
|
4,771 |
|
|
+ Operating lease interest (b) |
|
146 |
|
102 |
|
|
- Income taxes (c) |
|
1,427 |
|
986 |
|
|
Net operating profit after taxes |
|
$ 4,934 |
|
$ 3,887 |
|
|
Denominator |
|
August 3, 2024 |
|
July 29, 2023 |
|
July 30, 2022 |
Current portion of long-term debt and other borrowings |
|
$ 1,640 |
|
$ 1,106 |
|
$ 1,649 |
+ Noncurrent portion of long-term debt |
|
13,654 |
|
14,926 |
|
13,453 |
+ Shareholders' investment |
|
14,429 |
|
11,990 |
|
10,592 |
+ Operating lease liabilities (d) |
|
3,786 |
|
3,104 |
|
2,823 |
- Cash and cash equivalents |
|
3,497 |
|
1,617 |
|
1,117 |
Invested capital |
|
$ 30,012 |
|
$ 29,509 |
|
$ 27,400 |
Average invested capital (e) |
|
$ 29,760 |
|
$ 28,454 |
|
|
|
||||||
After-tax return on invested capital |
|
16.6 % |
|
13.7 % |
|
|
|
|
(a) |
The trailing twelve months ended August 3, 2024, consisted of 53 weeks compared with 52 weeks in the prior-year period. |
(b) |
Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases were owned or accounted for as finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within SG&A. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between us and our competitors. |
(c) |
Calculated using the effective tax rates, which were 22.4 percent and 20.2 percent for the trailing twelve months ended August 3, 2024, and July 29, 2023, respectively. For the twelve months ended August 3, 2024, and July 29, 2023, includes tax effect of $1.4 billion and $1.0 billion, respectively, related to EBIT, and $33 million and $20 million, respectively, related to operating lease interest. |
(d) |
Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively. |
(e) |
Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period. |