What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-11-24 compared with 2021-08-27 · 95 added, 95 removed, 229 unchanged (45% of the section changed)

1 unchanged sentence

Financial Summary

Second quarter 2021 included the following notable items:

• GAAP diluted earnings per share was $3.65.

• Adjusted diluted earnings per share was $3.64.

Third quarter 2021 included the following notable items:

• GAAP diluted earnings per share were $3.04.

• Adjusted diluted earnings per share were $3.03.

• Total revenue increased 13.3 percent, driven by an increase in comparable sales.

• Comparable sales increased 8.9 percent, driven by a 12.7 percent increase in traffic.

• Comparable sales increased 12.7 percent, driven primarily by a 12.9 percent increase in traffic.

◦ Comparable stores originated sales grew 9.7 percent.

◦ Comparable digitally originated sales increased 28.9 percent.

• Operating income of $2.5 billion was 7.2 percent higher than the comparable prior-year period.

Sales were $24.8 billion for the three months ended July 31, 2021, an increase of $2.1 billion, or 9.4 percent, from the comparable prior-year period.

Cash flow provided by operating activities was $3.4 billion for the six months ended July 31, 2021, a decrease of $1.7 billion, or (33.1) percent, from $5.1 billion for the six months ended August 1, 2020.

• Operating income of $2.0 billion was 3.9 percent higher than for the comparable prior-year period.

Sales were $25.3 billion for the three months ended October 30, 2021, an increase of $3.0 billion , or 13.2 percent, from the comparable prior-year period.

Cash flow provided by operating activities was $5.6 billion for the nine months ended October 30, 2021, a decrease of $1.4 billion , or (20.5) percent, from $7.0 billion for the nine months ended October 31, 2020.

The drivers of the operating cash flow decrease are described on page 21 .

Earnings Per Share Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 Change July 31, 2021 August 1, 2020 Change

Earnings Per Share Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 Change October 30, 2021 October 31, 2020 Change

GAAP diluted earnings per share $ 3.04 $ 2.01 51.6 % $ 10.87 $ 5.91 83.9 %

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We report after-tax return on invested capital (ROIC) because we believe ROIC provides a meaningful measure of our capital allocation effectiveness over time.

For the trailing twelve months ended July 31, 2021, after-tax ROIC was 31.7 percent , compared with 17.2 percent for the trailing twelve months ended August 1, 2020.

For the trailing twelve months ended October 30, 2021, after-tax ROIC was 31.3 percent, compared with 19.9 percent for the trailing twelve months ended October 31, 2020.

The calculation of ROIC is provided on page 20 .

Since the onset of the COVID-19 pandemic, we have experienced strong comparable sales growth and significant volatility in our sales category and channel mix, including same-day fulfillment options.

Since the onset of the COVID-19 pandemic, we have experienced strong comparable sales growth and significant volatility in our sales category and channel mix.

Supply Chain Disruptions

In recent months, we have seen increasing supply chain disruptions, including country of origin production and port delays.

Additionally, trucker and dockworker shortages, a broad-based surge in consumer demand, and other factors have led to industry-wide U.S.

port and ground transportation delays.

In response, we have taken various actions, including ordering merchandise earlier, securing ocean freight routes, and increased use of air transport for certain merchandise.

While our inventory position is over $2 billion higher than a year ago, if we are unable to continue to source enough inventory and move it through our supply chain to our stores on a timely basis, we may experience increased out-of-stocks and lost sales.

Some of these supply chain disruptions and resulting actions have resulted in increased costs.

The Gross Margin Rate analysis on page 16 provides additional information.

TARGET CORPORATION

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MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents

ANALYSIS OF OPERATIONS Index to Notes

ANALYSIS OF RESULTS OF OPERATIONS

Summary of Operating Income Three Months Ended Six Months Ended

(dollars in millions) July 31, 2021 August 1, 2020 Change July 31, 2021 August 1, 2020 Change

Analysis of Results of Operations

Summary of Operating Income Three Months Ended Nine Months Ended

(dollars in millions) October 30, 2021 October 31, 2020 Change October 30, 2021 October 31, 2020 Change

Sales $ 25,290 $ 22,336 13.2 % $ 73,995 $ 64,403 14.9 %

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Operating income $ 2,010 $ 1,935 3.9 % $ 6,851 $ 4,703 45.7 %

Rate Analysis Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

Rate Analysis Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Gross margin rate 28.0 % 30.6 % 29.5 % 29.1 %

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We believe that our ability to successfully differentiate our guests’ shopping experience through a careful combination of merchandise assortment, price, convenience, guest experience, and other factors will, over the long-term, drive both increasing shopping frequency (traffic) and the amount spent each visit (average transaction amount).

TARGET CORPORATION

Q2 2021 Form 10-Q 14

MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents

ANALYSIS OF OPERATIONS Index to Notes

The increase in sales during the three and six months ended July 31, 2021, is due to a comparable sales increase of 8.9 percent and 15.3 percent, respectively, and the contribution from new stores.

The COVID-19 pandemic has affected the amount and mix of sales across channels and categories.

Comparable Sales Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

Comparable Sales Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Comparable sales change 12.7 % 20.7 % 14.4 % 18.7 %

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Average transaction amount (0.2) 15.6 0.3 15.7

Comparable Sales by Channel Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

TARGET CORPORATION

Q3 2021 Form 10-Q 14

MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents

ANALYSIS OF RESULTS OF OPERATIONS

Comparable Sales by Channel Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Stores originated comparable sales change 9.7 % 9.9 % 11.9 % 7.3 %

Digitally originated comparable sales change 28.9 154.5 27.8 163.9

Sales by Channel Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

Sales by Channel Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Stores originated 82.4 % 84.3 % 82.3 % 83.9 %

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Total 100 % 100 % 100 % 100 %

Sales by Fulfillment Channel Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

Sales by Fulfillment Channel Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Stores 96.7 % 96.1 % 96.5 % 96.2 %

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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.

Sales by Product Category Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

Sales by Product Category Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Apparel and accessories 17 % 18 % 18 % 17 %

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The collective interaction of a broad array of macroeconomic, competitive, and consumer behavioral factors, as well as sales mix and the transfer of sales to new stores, makes further analysis of sales metrics infeasible.

TARGET CORPORATION

Q2 2021 Form 10-Q 15

MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents

ANALYSIS OF OPERATIONS Index to Notes

We monitor the percentage of purchases that are paid for using RedCards (RedCard Penetration) because our internal analysis has indicated that a meaningful portion of the incremental purchases on RedCards are also incremental sales for Target.

Guests receive a 5 percent discount on virtually all purchases when they use a RedCard at Target.

RedCard sales increased for the three and six months ended July 31, 2021, and August 1, 2020;

RedCard sales increased for the three and nine months ended October 30, 2021, and October 31, 2020;

however, RedCard penetration declined as total Sales increased at a faster pace.

RedCard Penetration Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

RedCard Penetration Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Target Debit Card 11.7 % 12.2 % 11.8 % 12.2 %

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MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents

ANALYSIS OF OPERATIONS Index to Notes

ANALYSIS OF RESULTS OF OPERATIONS

Gross Margin Rate

For the three months ended July 31, 2021, our gross margin rate was 30.4 percent compared with 30.9 percent in the comparable prior-year pe riod.

For the three months ended October 30, 2021, our gross margin rate was 28.0 percent compared with 30.6 percent in the comparable prior-year pe riod.

This decrease reflected the net impact of

• pressure from higher merchandise and freight costs, partially offset by the benefit of low promotional and clearance markdown rates;

• the prior-year rate benefit from a second quarter 2020 change in our returns estimate for sales during the temporary returns suspension period;

• favorable category mix, reflecting strength in our higher-margin categories relative to our lower-margin categories;

• the benefit of a higher percentage of digital sales fulfilled through our lower-cost same-day fulfillment options.

For the six months ended July 31, 2021, our gross margin rate was 30.2 percent compared with 28.3 percent in the comparable prior-year pe riod.

This increase reflected

• merchandising benefits, including exceptionally low promotional and clearance markdown rates, partially offset by higher merchandise and freight costs;

• favorable category mix, reflecting strength in our higher-margin categories relative to our lower-margin categories;

• the benefit of a higher percentage of digital sales fulfilled through our lower-cost same-day fulfillment options.

• pressure from higher merchandise and freight costs and higher inventory shrink, partially offset by the benefit of historically low promotional and clearance markdown rates;

• supply chain pressure related to increased compensation and headcount in our distribution centers;

• favorable mix in the relative growth rates of higher and lower margin categories.

For the nine months ended October 30, 2021, our gross margin rate was 29.5 percent compared with 29.1 percent in the comparable prior-year pe riod.

This increase reflected the net impact of

• favorable mix in the relative growth rates of higher and lower margin categories;

• higher merchandise and freight costs partially offset by historically low promotional and clearance markdown rates;

• supply chain pressure related to increased compensation and headcount in our distribution centers, partially offset by the small net benefit of a higher percentage of digital sales fulfilled through our lower-cost same-day fulfillment options.

Selling, General, and Administrative Expense Rate

For the three months ended October 30, 2021, our SG&A expense rate was 18.9 percent compared with 20.5 percent for the three months ended October 31, 2020.

For the nine months ended October 30, 2021, our SG&A expense rate was 19.0 percent compared with 20.2 percent for the nine months ended October 31, 2020.

The decreases reflect the net leverage benefit from strong revenue growth.

TARGET CORPORATION

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MANAGEMENT'S DISCUSSION AND ANALYSIS Table of Contents

ANALYSIS OF OPERATIONS Index to Notes

Selling, General, and Administrative Expense Rate

For the three months ended July 31, 2021, our SG&A expense rate was 19.3 percent compared with 19.4 percent for the three months ended August 1, 2020.

For the six months ended July 31, 2021, our SG&A expense rate was 19.0 percent compared with 20.0 percent for the six months ended August 1, 2020.

The decreases reflect the continued leverage benefit from strong revenue growth, offset by pressure from increases in some expense categories—such as marketing—from lower-than-normal levels in 2020.

Change in Number of Stores Three Months Ended Six Months Ended

July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020

ANALYSIS OF RESULTS OF OPERATIONS

Change in Number of Stores Three Months Ended Nine Months Ended

October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020

Beginning store count 1,909 1,871 1,897 1,868

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Retail Square Feet Number of Stores Retail Square Feet (a)

July 31, 2021 January 30, 2021 August 1, 2020 July 31, 2021 January 30, 2021 August 1, 2020

October 30, 2021 January 30, 2021 October 31, 2020 October 30, 2021 January 30, 2021 October 31, 2020

170,000 or more sq.

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Net Interest Expense

Net interest expense was $104 million and $212 million for the three and six months ended July 31, 2021, respectively, compared with $122 million and $239 million, respectively, in the comparable prior-year period.

The decrease in net interest expense was primarily due to lower average debt balances for the three and six months ended July 31, 2021, compared with the prior-year periods.

Net interest expense was $105 million and $317 million for the three and nine months ended October 30, 2021, respectively, compared with $632 million and $871 million, respectively, in the comparable prior-year period.

The decrease in net interest expense was primarily due to a loss on early retirement of debt of $512 million for the three and nine months ended October 31, 2020, compared with the current-year periods.

Net Other (Income) / Expense

Net Other (Income) / Expense was $(7) million and $(350) million for the three and six months ended July 31, 2021, respectively, compared with $(11) million and $11 million, respectively, in the comparable prior-year periods.

The increase for the six months ended July 31, 2021, was due to the $335 million gain on the February 2021 sale of Dermstore.

Net Other (Income) / Expense was $(6) million and $(356) million for the three and nine months ended October 30, 2021, respectively, compared with $5 million and $16 million, respectively, in the comparable prior-year periods.

The nine months ended October 30, 2021, included the $335 million gain on the February 2021 sale of Dermstore.

Note 3 to the Financial Statements provides additional information.

Provision for Income Taxes

Our effective income tax rate for the three and six months ended July 31, 2021, was 23.4 percent and 21.4 percent, respectively, compared w ith 22.8 percent and 21.6 percent, respectively, in the comparable prior-year periods, reflecting significantly higher earnings during the current-year periods which diluted the tax rate impact of fixed deductions and discrete items.

The effective tax rate impact of higher earnings for the six months ended July 31, 2021, was offset by the resolution of certain income tax matters during the first quarter.

Our effective income tax rate for the three and nine months ended October 30, 2021, was 22.1 percent and 21.6 percent, respectively, compared w ith 21.9 percent and 21.7 percent, respectively, in the comparable prior-year periods.

TARGET CORPORATION

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Reconciliation of Non-GAAP Adjusted EPS Three Months Ended

July 31, 2021 August 1, 2020

October 30, 2021 October 31, 2020

(millions, except per share data) Pretax Net of Tax Per Share Amounts Pretax Net of Tax Per Share Amounts

GAAP diluted earnings per share $ 3.04 $ 2.01

Gain on investment (a)

Loss on debt extinguishment $ — $ — $ — $ 512 $ 379 $ 0.75

Loss on investment (a)

— — — 8 9 0.02

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Adjusted diluted earnings per share $ 3.03 $ 2.79

Reconciliation of Non-GAAP Adjusted EPS Six Months Ended

July 31, 2021 August 1, 2020

Reconciliation of Non-GAAP Adjusted EPS Nine Months Ended

October 30, 2021 October 31, 2020

(millions, except per share data) Pretax Net of Tax Per Share Amounts Pretax Net of Tax Per Share Amounts

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Gain on Dermstore sale $ (335) $ (269) $ (0.54) $ — $ — $ —

Loss on debt extinguishment — — — 512 379 0.75

Loss on investment (a)

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Amounts may not foot due to rounding.

(a) Represented a (gain) / loss on our investment in Casper Sleep Inc., which was not core to our operations.

(a) Represented a loss on our investment in Casper Sleep Inc., which was not core to our operations.

We sold this investment during the fourth quarter of 2020.

(b) Includes civil unrest-related losses, net of associated insurance recoveries, and headquarters office space impairments, none of which were individually significant.

(b) Other items unrelated to current period operations, none of which were individually significant.

TARGET CORPORATION

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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) July 31, 2021 August 1, 2020 Change July 31, 2021 August 1, 2020 Change

EBIT and EBITDA Three Months Ended Nine Months Ended

(dollars in millions) October 30, 2021 October 31, 2020 Change October 30, 2021 October 31, 2020 Change

Net earnings $ 1,488 $ 1,014 46.8 % $ 5,402 $ 2,988 80.8 %

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Trailing Twelve Months

Numerator July 31, 2021 August 1, 2020

Numerator October 30, 2021 October 31, 2020

Operating income $ 8,687 $ 5,901

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Net operating profit after taxes $ 7,183 $ 4,665

Denominator July 31, 2021 August 1, 2020 August 3, 2019

Denominator October 30, 2021 October 31, 2020 November 2, 2019

Current portion of long-term debt and other borrowings $ 1,176 $ 131 $ 1,159

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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.

(b) Calculated using the effective tax rates, which were 21.2 percent and 21.4 percent for the trailing twelve months ended July 31, 2021, and August 1, 2020, respectively.

For the trailing twelve months ended July 31, 2021, and August 1, 2020, includes tax effect of $1.9 billion and $1.1 billion, respectively, related to EBIT, and $18 million and $19 million, respectively, related to operating lease interest.

(b) Calculated using the effective tax rates, which were 21.3 percent and 21.5 percent for the trailing twelve months ended October 30, 2021, and October 31, 2020, respectively.

For the trailing twelve months ended October 30, 2021, and October 31, 2020, includes tax effect of $1.9 billion and $1.3 billion, respectively, related to EBIT, and $18 million and $19 million, respectively, related to operating lease interest.

(c) Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.

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and finally, we return any excess cash to shareholders by repurchasing shares within the limits of our credit rating goals.

Our cash and cash equivalents balance was $7.4 billion, $8.5 billion, and $7.3 billion as of July 31, 2021, January 30, 2021, and August 1, 2020, respectively.

Our cash and cash equivalents balance includes short-term investments of $6.4 billion, $7.6 billion, and $6.4 billion as of July 31, 2021, January 30, 2021, and August 1, 2020, respectively.

Our cash and cash equivalents balance was $5.8 billion, $8.5 billion, and $6.0 billion as of October 30, 2021, January 30, 2021, and October 31, 2020, respectively.

Our cash and cash equivalents balance includes short-term investments of $4.8 billion, $7.6 billion, and $5.1 billion as of October 30, 2021, January 30, 2021, and October 31, 2020, respectively.

Our investment policy is designed to preserve principal and liquidity of our short-term investments.

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Operating Cash Flows

Cash flows provided by operating activities were $3.4 billion for the six months ended July 31, 2021, compared with $5.1 billion for the six months ended August 1, 2020 .

For the six months ended July 31, 2021, operating cash flows reflect stronger operating results, offset by increased inventory investment and higher net settlement of accounts payable, compared with the six months ended August 1, 2020.

Cash flows provided by operating activities were $5.6 billion for the nine months ended October 30, 2021, compared with $7.0 billion for the nine months ended October 31, 2020 .

For the nine months ended October 30, 2021, operating cash flows reflect stronger operating results, offset by increased inventory investment and lower accounts payable leverage, compared with the nine months ended October 31, 2020.

Additionally, operating cash flows for 2021 reflect a $1.1 billion increase in income tax payments.

Inventory was $11.3 billion as of July 31, 2021, compared with $10.7 billion and $8.9 billion at January 30, 2021, and August 1, 2020, respectively.

The increase over the balance as of August 1, 2020, reflects efforts to align inventory with sales trends.

Additionally, the lower inventory balance as of August 1, 2020, reflected the impact of elevated sell-through rates in longer lead-time merchandise categories.

Inventory was $15.0 billion as of October 30, 2021, compared with $10.7 billion and $12.7 billion at January 30, 2021, and October 31, 2020, respecti vely.

The increase over the balance as of October 31, 2020, reflects efforts to align inventory with sales trends.

Investing Cash Flows

Investing cash flows included capital investments of $1.3 billion and $1.4 billion for the six months ended July 31, 2021, and August 1, 2020, respectively.

We now expect full-year capital investments of approximately $3.5 billion compared with our previous expectation of $4 billion, reflecting the re-timing of some projects into next year.

F or the six months ended July 31, 2021, investing cash flows includes $356 million of proceeds from the sale of Dermstore.

We paid dividends totaling $336 million ($0.68 per share) and $676 million ($1.36 per share) for the three and six months ended July 31, 2021, respectively, and $330 million ($0.66 per share) and $662 million ($1.32 per share) for the three and six months ended August 1, 2020, respectively, a per share increase of 3.0 percent.

We declared dividends totaling $445 million ($0.90 per share) during the second quarter of 2021 and $344 million ($0.68 per share) during the second quarter of 2020, a per share increase of 32.4 percent.

Investing cash flows included capital investments of $2.5 billion and $2.0 billion for the nine months ended October 30, 2021, and October 31, 2020, respectively.

For the nine months ended October 31, 2021, investing cash flows includes $356 million of proceeds from the sale of Dermstore.

We paid dividends totaling $440 million ($0.90 per share) and $1.1 billion ($2.26 per share) for the three and nine months ended October 30, 2021, respectively, and $340 million ($0.68 per share) and $1.0 billion ($2.00 per share) for the three and nine months ended October 31, 2020, respectively, a per share increase of 32.4 percent and 13.0 percent, respectively.

We declared dividends totaling $439 million ($0.90 per share) during the third quarter of 2021 and $346 million ($0.68 per share) during the third quarter of 2020, a per share increase of 32.4 percent.

We have paid dividends every quarter since our 1967 initial public offering, and it is our intent to continue to do so in the future.

Share Repurchase

We returned $2.7 billion to shareholders through share repurchase during the six months ended July 31, 2021.

We returned $4.9 billion to shareholders through share repurchase during the nine months ended October 30, 2021.

See Part II , Item 2 , Unregistered Sales of Equity Securities and Use of Proceeds of this Quarterly Report on Form 10-Q and Note 9 to the Financial Statements for more information.

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Our continued access to these markets depends on multiple factors, including the condition of debt capital markets, our operating performance, and maintaining strong credit ratings.

As of July 31, 2021, our credit ratings were as follows:

As of October 30, 2021, our credit ratings were as follows:

Credit Ratings Moody’s Standard and Poor’s Fitch

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Each of the credit rating agencies reviews its rating periodically, and there is no guarantee our current credit ratings will remain the same as described above.

Fitch raised our long-term debt rating from A- to A during the three months ended July 31, 2021.

We obtain short-term financing from time to time under our commercial paper program.

No balances were outstanding at any time during the six months ended July 31, 2021, an d August 1, 2020.

We have additional liquidity through a committed $2.5 billion revolving credit facility that expires in October 2023.

No balances were outstanding at any time during 2021 or 2020.

No balances were outstanding at any time during the nine months ended October 30, 2021, an d October 31, 2020.

In October 2021, we obtained a committed $3.0 billion unsecured revolving credit facility that will expire in October 2026.

This new facility replaced our $2.5 billion unsecured revolving credit facility that was set to expire in October 2023.

No balances were outstanding under either credit facility at any time during 2021 or 2020.

Most of our long-term debt obligations contain covenants related to secured debt levels.

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We are, and expect to remain, in compliance with these covenants.

Additionally, as of July 31, 2021, no notes or debentures contained provisions requiring acceleration of payment upon a credit rating downgrade, except that certain outstanding notes allow the note holders to put the notes to us if within a matter of months of each other we experience both (i) a change in control and (ii) our long-term credit ratings are either reduced and the resulting rating is non-investment grade, or our long-term credit ratings are placed on watch for possible reduction and those ratings are subsequently reduced and the resulting rating is non-investment grade.

Additionally, as of October 30, 2021, no notes or debentures contained provisions requiring acceleration of payment upon a credit rating downgrade, except that certain outstanding notes allow the note holders to put the notes to us if within a matter of months of each other we experience both (i) a change in control and (ii) our long-term credit ratings are either reduced and the resulting rating is non-investment grade, or our long-term credit ratings are placed on watch for possible reduction and those ratings are subsequently reduced and the resulting rating is non-investment grade.

We believe our sources of liquidity will continue to be adequate to maintain operations, finance anticipated expansion and strategic initiatives, fund debt maturities, pay dividends, and execute purchases under our share repurchase program for the foreseeable future.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis