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The allowance, recognized in an amount equal to the anticipated future write-offs based on delinquencies, risk scores, aging trends, industry risk trends and our historical experience, was $451 million at January 28, 2006 and $387 million at January 29, 2005. Substantially all accounts continue to accrue finance charges until they are written off. Accounts are written off when they become 180 days past due. They are also following SFAS 140 as it requires the receivables to be included of the financial subsidiaries including the trust.
Inventory is valued as per the retail inventory method using the Last In First out method...
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