Check out our previous Trends edition at Trending: Brazil Welcomes New President in Hope of Economic Resurgence. Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. The expected lease term is used in determining whether the lease is accounted for as an operating lease or a capital lease. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. But I've long been a skeptic when it comes to Target stock and truthfully, I still am. The increase was primarily due to changes in accounts payable activities and deferred taxes related to depreciation. The corporation continues to pull on its long trusted business model of family-oriented specialty department stores while updating its private lines and celebrity partnerships to maintain relevance with consumers.
I am very proud of our team and the role they played in these results and want to thank them for their hard work, loyalty and dedication. As a result, our share of profits from the credit card portfolio may be negatively impacted by increases in interest rates. Unanticipated changes in the pricing and other practices of those competitors may adversely affect our performance. The dividend is payable September 21, 2016 to shareholders of record at the close of business on September 7, 2016. Kohl's Corporation's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Still, looking forward, I'm not sure that Target stock is nearly as cheap as it looks.
In lieu of cash dividends, nonvested stock awards are granted restricted stock equivalents which vest consistently with the underlying nonvested stock awards. And they're being duplicated by most of the company's competitors, including Walmart. The actuary considers historical claims experience, demographic and severity factors and actuarial assumptions to estimate the liabilities associated with these risks. Bank National Association, as an Issuing Bank, a Swing Line Lender and a Syndication Agent, Wells Fargo Bank, National Association, as an Issuing Bank, a Swing Line Lender and a Syndication Agent, and Morgan Stanley Bank, N. As of February 2, 2013 , 739 of our 1,146 retail stores were subject to either a ground or building lease. Damage to the reputations whether or not justified of our brand names or any affiliated individuals, could arise from product failures, litigation or various forms of adverse publicity, especially in social media outlets, and may generate negative customer sentiment, potentially resulting in a reduction in sales, earnings, and shareholder value. Thus, the valuation of Target stock shouldn't be as high as it is.
Contributions are made at the discretion of the Board of Directors. Our typical lease has an initial term of 20-25 years and four to eight renewal options for consecutive five-year extension terms. A market failure scenario was employed as recent successful auctions of these securities were very limited. We establish valuation allowances for deferred tax assets when we believe it is more likely than not that the asset will not be realizable for tax purposes. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount which we believe is cumulatively greater than 50% likely to be realized. The income statement is also called the profit and loss statement.
Although these amounts are actuarially determined based on analysis of historical trends, the amounts that we will ultimately disburse could differ from these estimates. A lease is considered a capital lease if the net present value of the lease payments is greater than 90% of the fair market value of the property. Many of those associates are in entry level or part-time positions with historically high rates of turnover. A small amount of our merchandise is delivered directly to the stores by vendors or their distributors. Both the increased cost and lower availability of merchandise, raw materials, fuel and labor may also have an adverse impact on our cash and working capital needs as well as those of our suppliers. Failure to exercise such options would result in the recognition of accelerated depreciation expense of the related assets.
In 2013, we expect to open 12 new stores. Technological systems and improvements support our low-cost culture by enhancing productivity and providing the information needed to make key merchandising decisions. If we do not properly allocate our capital to maximize returns, we may fail to produce optimal financial results and we may experience a reduction in shareholder value. Learn more about Thomson Reuters products:. Certain states have proposed adjustments which we are currently appealing. We are encouraged by the performance of juniors and young men's as we enter the Back-to-School season.
Credit worthiness Credit default swap Negative The current level displays a negative indicator with a strengthening bias over the past 1-month. As internet sales continued to increase to more than 50% of its previous years sales, a third distribution plant has been acquired in Edgewood, Maryland 16. Allowances related to merchandise that has not yet been sold are recorded in inventory. We receive allowances from many of our merchandise vendors. While it is possible that one or more of these examinations may be resolved in the next year, it is not anticipated that a significant impact to the unrecognized tax benefit balance will occur. McDonald began his retail career in 1988.
We are temporarily reducing the number of remodels to approximately 30 stores in 2013 as we continue to evaluate and test different categories and space allocations in our stores. Markdown allowances and volume rebates are recorded as a reduction of inventory costs. Data may be intentionally delayed pursuant to supplier requirements. Vesting of performance-vested shares is contingent upon achievement of certain performance criteria, such as designated net income levels or sales levels that exceed those of a group of our peers. Management considers style, quality and price to be the most significant competitive factors in the industry. The calculations exclude trading commissions and taxes.
Unobservable inputs include expected redemption date and discount rate. Our ability to meet our labor needs while controlling costs is subject to external factors such as unemployment levels, prevailing wage rates, minimum wage legislation and changing demographics. Substantially all of our leases provide for a minimum annual rent that is fixed or adjusts to set levels during the lease term, including renewals. Schepp was promoted to Senior Executive Vice President, General Counsel and Secretary in May 2011 and is responsible for legal affairs and internal audit. We compete for customers, associates, locations, merchandise, services and other important aspects of our business with many other local, regional and national retailers. The increase in interest expense is primarily due to the net increase in our outstanding long-term debt.