GiftCards Through innovative designs that reinforce  our brand image and satisfy a wide range of gift-giving occasions, GiftCards are an important way for us to delight our guests and drive incremental sales and traffic  in our stores. According to a recent survey, more than 90 percent of guests who come to a Target store to redeem a GiftCard spend more than the value of the card. Store-Brand Credit Cards Our store-brand credit cards build guest loyalty and reinforce affinity with our brand through unique Rewards programs, special offers and customized marketing. They also generate a strong financial return. While our proprietary credit cards at Target, MervynGLYPH<213>s and Marshall FieldGLYPH<213>s create an important affinity with our guests and contribute meaningfully to our financial performance, other products and services are increasingly visible and valuable. Gift cards, for example, represent another form of branded payment that has experienced rapid growth in recent years. Since our first GiftCard was issued in 1999, GiftCards have enjoyed a substantial double- digit dollar increase every year. And, by applying the same differentiated and innovative approach to our GiftCards as to our merchandising and marketing, Target is among the largest issuers of gift cards in the world. The Target Visa exemplifies both our key strategic objec- tives and our core operating principles. Target Visa guests are more devoted Target shoppers and routinely spend 50 to 60 percent more at Target stores than other Target guests. This loyalty affirms our belief that the utility of the Target Visa card, in conjunction with programs such as Take Charge of Education (TCOE) and Target Rewards, delivers meaningful, incremental value and strengthens our bond with our guests. This bond is reinforced through the efforts of our own credit card team members. By maintaining direct access to our guests, we are able to acquire valuable information that helps us to more effectively serve their needs. Furthermore, our considerable experience in managing credit card operations over many decades has contributed to an operating efficiency consistent with industry leaders. Our credit card operations have achieved tremendous results. Yet, for all of our success, weGLYPH<213>re not standing still. We continue to pursue initiatives that expand our horizon beyond the traditional credit card business and leverage our scale and technology to generate profitable growth and improve our guestsGLYPH<213> experience. For example, our guest contact centers are staffed by specialists who handle all guest inquiries and correspondence from Target stores guest relations, our bridal and baby registries, Take Charge of Education and our credit card operations. In addition, by recognizing the parallels between credit and check payment models and applying our core credit card disciplines and tools to our in-store check authorizations, we have significantly reduced our returned check expenses. Vision and discipline continue to be the cornerstones of our approach as we propel our business forward. And as we grow, we remain firmly committed to our mission: to deliver financial products and services that drive sales, deepen guest relationships and sustain outstanding profitability. 11 Growing Fast, Growing Smart Target Visa From a financial perspective, Target Visa demonstrates our adherence to financial discipline and also clearly satisfies our primary objectives. Since the card was first introduced, our net yield on the Visa portfolio has steadily improved, and in 2003 our profit contribution from this portfolio was substantially above its prior year level.