Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 02, 2019 | Aug. 23, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Aug. 2, 2019 | |
Entity File Number | 001-11421 | |
Entity Registrant Name | DOLLAR GENERAL CORPORATION | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 61-0502302 | |
Entity Address, Address Line One | 100 MISSION RIDGE | |
Entity Address, City or Town | GOODLETTSVILLE | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37072 | |
City Area Code | 615 | |
Local Phone Number | 855-4000 | |
Title of 12(b) Security | Common Stock, par value $0.875 per share | |
Trading Symbol | DG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 257,068,296 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000029534 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 02, 2019 | Feb. 01, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 259,568 | $ 235,487 |
Merchandise inventories | 4,419,628 | 4,097,004 |
Income taxes receivable | 61,692 | 57,804 |
Prepaid expenses and other current assets | 178,250 | 272,725 |
Total current assets | 4,919,138 | 4,663,020 |
Net property and equipment | 3,020,406 | 2,970,806 |
Operating lease assets | 8,405,346 | |
Goodwill | 4,338,589 | 4,338,589 |
Other intangible assets, net | 1,200,111 | 1,200,217 |
Other assets, net | 33,939 | 31,406 |
Total assets | 21,917,529 | 13,204,038 |
Current liabilities: | ||
Current portion of long-term obligations | 555 | 1,950 |
Current portion of operating lease liabilities | 915,075 | |
Accounts payable | 2,727,079 | 2,385,469 |
Accrued expenses and other | 666,251 | 618,405 |
Income taxes payable | 3,310 | 10,033 |
Total current liabilities | 4,312,270 | 3,015,857 |
Long-term obligations | 2,573,483 | 2,862,740 |
Long-term operating lease liabilities | 7,480,871 | |
Deferred income taxes | 627,765 | 609,687 |
Other liabilities | 173,980 | 298,361 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock | ||
Common stock | 224,935 | 227,072 |
Additional paid-in capital | 3,292,902 | 3,252,421 |
Retained earnings | 3,234,944 | 2,941,107 |
Accumulated other comprehensive loss | (3,621) | (3,207) |
Total shareholders' equity | 6,749,160 | 6,417,393 |
Total liabilities and shareholders' equity | $ 21,917,529 | $ 13,204,038 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
Net sales | $ 6,981,753 | $ 6,443,309 | $ 13,604,938 | $ 12,557,772 |
Cost of goods sold | 4,832,817 | 4,468,436 | 9,453,726 | 8,720,650 |
Gross profit | 2,148,936 | 1,974,873 | 4,151,212 | 3,837,122 |
Selling, general and administrative expenses | 1,571,161 | 1,429,397 | 3,061,200 | 2,801,462 |
Operating profit | 577,775 | 545,476 | 1,090,012 | 1,035,660 |
Interest expense | 24,810 | 25,451 | 50,743 | 50,224 |
Other (income) expense | 1,019 | 1,019 | ||
Income before income taxes | 552,965 | 519,006 | 1,039,269 | 984,417 |
Income tax expense | 126,410 | 111,769 | 227,701 | 212,328 |
Net income | $ 426,555 | $ 407,237 | $ 811,568 | $ 772,089 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.65 | $ 1.53 | $ 3.14 | $ 2.89 |
Diluted (in dollars per share) | $ 1.65 | $ 1.52 | $ 3.13 | $ 2.88 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 257,793 | 266,457 | 258,407 | 267,362 |
Diluted (in shares) | 259,102 | 267,226 | 259,683 | 268,180 |
Dividends per share | $ 0.32 | $ 0.29 | $ 0.64 | $ 0.58 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 426,555 | $ 407,237 | $ 811,568 | $ 772,089 |
Unrealized net gain (loss) on hedged transactions, net of related income tax expense (benefit) of $86, $86, $172 and $172, respectively | 243 | 244 | 487 | 487 |
Comprehensive income | $ 426,798 | $ 407,481 | $ 812,055 | $ 772,576 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Unrealized net gain (loss) on hedged transactions, income tax expense (benefit) | $ 86 | $ 86 | $ 172 | $ 172 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balances at Feb. 02, 2018 | $ 235,141 | $ 3,196,462 | $ 2,698,352 | $ (4,181) | $ 6,125,774 |
Balances (in shares) at Feb. 02, 2018 | 268,733 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 772,089 | 772,089 | |||
Dividends per common share | (154,748) | (154,748) | |||
Unrealized net gain (loss) on hedged transactions | 487 | 487 | |||
Share-based compensation expense | 21,779 | 21,779 | |||
Repurchases of common stock | $ (3,225) | (346,313) | (349,538) | ||
Repurchases of common stock (in shares) | (3,685) | ||||
Other equity and related transactions | $ 424 | 3,992 | (1) | 4,415 | |
Other equity and related transactions (in shares) | 484 | ||||
Balances at Aug. 03, 2018 | $ 232,340 | 3,222,233 | 2,928,064 | (3,695) | 6,378,942 |
Balances (in shares) at Aug. 03, 2018 | 265,532 | ||||
Balances at May. 04, 2018 | $ 234,109 | 3,210,527 | 2,795,620 | (3,938) | 6,236,318 |
Balances (in shares) at May. 04, 2018 | 267,553 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 407,237 | 407,237 | |||
Dividends per common share | (77,091) | (77,091) | |||
Unrealized net gain (loss) on hedged transactions | 244 | 244 | |||
Share-based compensation expense | 9,373 | 9,373 | |||
Repurchases of common stock | $ (1,835) | (197,702) | (199,537) | ||
Repurchases of common stock (in shares) | (2,096) | ||||
Other equity and related transactions | $ 66 | 2,333 | (1) | 2,398 | |
Other equity and related transactions (in shares) | 75 | ||||
Balances at Aug. 03, 2018 | $ 232,340 | 3,222,233 | 2,928,064 | (3,695) | 6,378,942 |
Balances (in shares) at Aug. 03, 2018 | 265,532 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Transition adjustment upon adoption of accounting standard (see Note 1) | (41,316) | (41,316) | |||
Balances at Feb. 01, 2019 | $ 227,072 | 3,252,421 | 2,941,107 | (3,207) | 6,417,393 |
Balances (in shares) at Feb. 01, 2019 | 259,511 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 811,568 | 811,568 | |||
Dividends per common share | (165,147) | (165,147) | |||
Unrealized net gain (loss) on hedged transactions | 487 | 487 | |||
Share-based compensation expense | 24,505 | 24,505 | |||
Repurchases of common stock | $ (2,659) | (382,315) | (384,974) | ||
Repurchases of common stock (in shares) | (3,039) | ||||
Other equity and related transactions | $ 522 | 15,976 | 901 | (901) | 16,498 |
Other equity and related transactions (in shares) | 596 | ||||
Balances at Aug. 02, 2019 | $ 224,935 | 3,292,902 | 3,234,944 | (3,621) | 6,749,160 |
Balances (in shares) at Aug. 02, 2019 | 257,068 | ||||
Balances at May. 03, 2019 | $ 226,032 | 3,275,917 | 3,074,584 | (3,864) | 6,572,669 |
Balances (in shares) at May. 03, 2019 | 258,322 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 426,555 | 426,555 | |||
Dividends per common share | (82,391) | (82,391) | |||
Unrealized net gain (loss) on hedged transactions | 243 | 243 | |||
Share-based compensation expense | 10,874 | 10,874 | |||
Repurchases of common stock | $ (1,184) | (183,804) | (184,988) | ||
Repurchases of common stock (in shares) | (1,353) | ||||
Other equity and related transactions | $ 87 | 6,111 | 6,198 | ||
Other equity and related transactions (in shares) | 99 | ||||
Balances at Aug. 02, 2019 | $ 224,935 | $ 3,292,902 | 3,234,944 | $ (3,621) | 6,749,160 |
Balances (in shares) at Aug. 02, 2019 | 257,068 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Transition adjustment upon adoption of accounting standard (see Note 1) | $ 28,830 | $ 28,830 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Aug. 02, 2019 | May 03, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||||
Dividends per share | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.64 | $ 0.58 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 02, 2019 | Aug. 03, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 811,568 | $ 772,089 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 245,908 | 221,511 |
Deferred income taxes | 8,118 | 12,500 |
Loss on debt retirement | 1,019 | |
Noncash share-based compensation | 24,505 | 21,779 |
Other noncash (gains) and losses | 4,001 | 12,120 |
Change in operating assets and liabilities: | ||
Merchandise inventories | (321,085) | (292,934) |
Prepaid expenses and other current assets | (8,516) | (25,727) |
Accounts payable | 323,217 | 270,862 |
Accrued expenses and other liabilities | 58,614 | 61,096 |
Income taxes | (10,611) | 43,058 |
Other | (5,198) | (84) |
Net cash provided by (used in) operating activities | 1,130,521 | 1,097,289 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (293,060) | (370,968) |
Proceeds from sales of property and equipment | 1,467 | 1,349 |
Net cash provided by (used in) investing activities | (291,593) | (369,619) |
Cash flows from financing activities: | ||
Issuance of long-term obligations | 499,495 | |
Repayments of long-term obligations | (525) | (575,664) |
Net increase (decrease) in commercial paper outstanding | (280,700) | (149,400) |
Costs associated with issuance and retirement of debt | (4,384) | |
Repurchases of common stock | (384,974) | (349,538) |
Payments of cash dividends | (165,136) | (154,708) |
Other equity and related transactions | 16,488 | 4,376 |
Net cash provided by (used in) financing activities | (814,847) | (729,823) |
Net increase (decrease) in cash and cash equivalents | 24,081 | (2,153) |
Cash and cash equivalents, beginning of period | 235,487 | 267,441 |
Cash and cash equivalents, end of period | 259,568 | 265,288 |
Supplemental schedule of noncash investing and financing activities: | ||
Right of use assets obtained in exchange for new operating lease liabilities | 847,498 | |
Purchases of property and equipment awaiting processing for payment, included in Accounts payable | $ 82,055 | $ 77,541 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Aug. 02, 2019 | |
Basis of presentation | |
Basis of presentation | 1. Basis of presentation The accompanying unaudited condensed consolidated financial statements of Dollar General Corporation and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Such financial statements consequently do not include all of the disclosures normally required by U.S. GAAP for annual financial statements or those normally made in the Company’s Annual Report on Form 10-K, including the condensed consolidated balance sheet as of February 1, 2019 which was derived from the audited consolidated financial statements at that date. Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2019 for additional information. The Company’s fiscal year ends on the Friday closest to January 31. Unless the context requires otherwise, references to years contained herein pertain to the Company’s fiscal year. The Company’s 2019 fiscal year is scheduled to be a 52-week accounting period ending on January 31, 2020, and the 2018 fiscal year was a 52-week accounting period that ended on February 1, 2019. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the Company’s customary accounting practices. In management’s opinion, all adjustments (which are of a normal recurring nature) necessary for a fair presentation of the consolidated financial position as of August 2, 2019 and results of operations for the 13-week and 26-week accounting periods ended August 2, 2019 and August 3, 2018 have been made. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Because the Company’s business is moderately seasonal, the results for interim periods are not necessarily indicative of the results to be expected for the entire year. The Company uses the last-in, first-out (“LIFO”) method of valuing inventory. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels, sales for the year and the expected rate of inflation or deflation for the year. The interim LIFO calculations are subject to adjustment in the final year-end LIFO inventory valuation. The Company recorded a LIFO provision of $3.2 million and $3.4 million in the respective 13-week periods, and $6.6 million and $5.5 million in the respective 26-week periods, ended August 2, 2019 and August 3, 2018. In addition, ongoing estimates of inventory shrinkage and initial markups and markdowns are included in the interim cost of goods sold calculation. The Company adopted new accounting guidance related to leases as of February 2, 2019, using the modified retrospective approach. Under this approach, existing leases were recorded at the adoption date, and comparative periods were not restated and are presented under previously existing guidance. In addition, the Company elected the package of practical expedients permitted under the transition guidance in the standard, which among other things, allowed the carry forward of historical conclusions for lease identification, lease classification, and initial direct costs. The Company is accounting for leases with a term of less than one year under the short-term policy election. The Company also elected the practical expedient to not separate lease components from the non-lease components (typically fixed common-area maintenance costs at its retail store locations) for all classes of leased assets. The Company chose not to elect the hindsight practical expedient . Factors incorporated into the calculation of lease discount rates include the valuations and yields of the Company’s senior notes, their credit spread over comparable U.S. Treasury rates, and an index of the credit spreads for all North American investment grade companies by rating. To determine an indicative secured rate, the Company uses the estimated credit spread improvement that would result from an upgrade of one ratings classification by tenor. Adoption of the leasing standard resulted in right of use operating lease assets and operating lease liabilities of approximately $8.0 billion each as of February 2, 2019. The cumulative effect of applying the standard resulted in an adjustment to retained earnings of $28.8 million at February 2, 2019, primarily for the elimination of deferred gain on a 2013 sale-leaseback transaction. Because the standard was adopted under the modified retrospective approach, it did not impact the Company’s historical consolidated net income or cash flows. In February 2018, the FASB issued new accounting guidance for the reclassification of certain tax effects from accumulated other comprehensive income which gives entities the option to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (“TCJA”). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the TCJA’s change in US federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the TCJA but do not directly relate to the change in the federal tax rate. The Company adopted this standard in the first quarter of 2019 and recorded a transition adjustment of $0.9 million, which is reflected as a reclassification from accumulated other comprehensive loss to retained earnings in the accompanying condensed consolidated financial statements. In October 2016, the FASB issued amendments to existing guidance related to accounting for intra-entity transfers of assets other than inventory, which affected the Company’s historical accounting for intra-entity transfers of certain intangible assets. This guidance was effective for the Company in 2018. The amendments were applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance effective February 3, 2018 which resulted in an increase in deferred income tax liabilities and a decrease in retained earnings of $41.3 million. In January 2017, the FASB issued amendments to existing guidance related to the subsequent measurement of goodwill. These amendments modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Subsequent to adoption, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments should be applied on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. The Company currently does not anticipate a material effect on its consolidated results of operations, financial position or cash flows to result from the adoption of this guidance. |
Earnings per share
Earnings per share | 6 Months Ended |
Aug. 02, 2019 | |
Earnings per share | |
Earnings per share | 2. Earnings per share Earnings per share is computed as follows (in thousands, except per share data): 13 Weeks Ended August 2, 2019 13 Weeks Ended August 3, 2018 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 426,555 257,793 $ 1.65 $ 407,237 266,457 $ 1.53 Effect of dilutive share-based awards 1,309 769 Diluted earnings per share $ 426,555 259,102 $ 1.65 $ 407,237 267,226 $ 1.52 26 Weeks Ended August 2, 2019 26 Weeks Ended August 3, 2018 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 811,568 258,407 $ 3.14 $ 772,089 267,362 $ 2.89 Effect of dilutive share-based awards 1,276 818 Diluted earnings per share $ 811,568 259,683 $ 3.13 $ 772,089 268,180 $ 2.88 Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is determined based on the dilutive effect of share-based awards using the treasury stock method. Share-based awards that were outstanding at the end of the respective periods, but were not included in the computation of diluted earnings per share because the effect of exercising such awards would be antidilutive, were 0.6 million and 0.9 million in the respective 13-week periods, and 0.6 million and 0.9 million in the respective 26-week periods, ended August 2, 2019 and August 3, 2018. |
Income taxes
Income taxes | 6 Months Ended |
Aug. 02, 2019 | |
Income taxes | |
Income taxes | 3. Income taxes Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. Income tax reserves are determined using the methodology established by accounting standards for income taxes which require companies to assess each income tax position taken using the following two-step approach. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. The Company’s 2014 and earlier tax years are not open for further examination by the Internal Revenue Service (“IRS”). The IRS, at its discretion, may choose to examine the Company’s 2015 through 2017 fiscal year income tax filings. The Company has various state income tax examinations that are currently in progress. Generally, with few exceptions, the Company’s 2015 and later tax years remain open for examination by the various state taxing authorities. As of August 2, 2019, the total reserves for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $5.0 million, $1.0 million and $0.9 million, respectively, for a total of $6.9 million. This total amount is reflected in noncurrent other liabilities in the condensed consolidated balance sheet. The Company’s reserve for uncertain tax positions will not be reduced in the coming twelve months as a result of expiring statutes of limitations. As of August 2, 2019, approximately $5.0 million of the reserve for uncertain tax positions would impact the Company’s effective income tax rate if the Company were to recognize the tax benefit for these positions. The effective income tax rates for the 13-week and 26-week periods ended August 2, 2019 were 22.9% and 21.9%, respectively, compared to rates of 21.5% and 21.6%, respectively, for the 13-week and 26-week periods ended August 3, 2018. The tax rates for the 13-week and 26-week periods were higher than the comparable 13-week and 26-week periods in 2018 primarily due to an increase in state income taxes resulting from law changes, which was partially offset by greater tax benefits associated with share-based compensation. |
Leases
Leases | 6 Months Ended |
Aug. 02, 2019 | |
Leases | |
Leases | 4. Leases As of August 2, 2019, the Company’s primary leasing activities were real estate leases for most of its retail store locations and certain of its distribution facilities. Many of the Company’s store locations are subject to build-to-suit arrangements with landlords which typically carry a primary lease term of up to 15 years. The Company does not control build-to-suit properties during the construction period. Store locations not subject to build-to-suit arrangements are typically shorter-term leases. Certain of the Company’s leased store locations have variable payments based upon actual costs of common area maintenance, real estate taxes and property and liability insurance. In addition, some of the Company’s leased store locations have provisions for variable payments based upon a specified percentage of defined sales volume. The Company’s leased distribution facilities are subject to operating lease agreements, with the exception of one distribution facility which is subject to a financing transaction. The Company’s lease agreements generally do not contain material restrictive covenants. Most of the Company’s leases include one or more options to renew and extend the lease term. The exercise of lease renewal options is at the Company’s sole discretion. Generally, a renewal option is not deemed to be reasonably certain to be exercised until such option is legally executed. The Company’s leases do not include purchase options or residual value guarantees on the leased property. The depreciable life of leasehold improvements are limited by the expected lease term. All of the Company’s leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the condensed consolidated balance sheet. At August 2, 2019, the weighted-average remaining lease term for the Company’s leases is 10.2 years, and the weighted average discount rate is 4.4%. For the 26-week period ended August 2, 2019, operating lease cost of $622.4 million and variable lease cost of $120.0 million were reflected as selling, general and administrative expenses in the condensed consolidated statement of income. Cash paid for amounts included in the measurement of operating lease liabilities of $626.3 million was reflected in cash flows from operating activities in the condensed consolidated statement of cash flows for the 26-week period ended August 2, 2019. The scheduled maturity of the Company’s operating lease liabilities is as follows: (In thousands) 2019 $ 634,593 2020 1,238,277 2021 1,182,516 2022 1,112,780 2023 1,037,980 Thereafter 5,180,000 Total lease payments (a) 10,386,146 Less imputed interest (1,990,200) Present value of lease liabilities $ 8,395,946 a) Excludes approximately $0.7 billion of legally binding minimum lease payments for leases signed which have not yet commenced. |
Current and long-term obligatio
Current and long-term obligations | 6 Months Ended |
Aug. 02, 2019 | |
Current and long-term obligations | |
Current and long-term obligations | 5. Current and long-term obligations Current and long-term obligations consist of the following: August 2, February 1, (In thousands) 2019 2019 Revolving Facility $ — $ — 3.250% Senior Notes due April 15, 2023 (net of discount of $962 and $1,084) 899,038 898,916 4.150% Senior Notes due November 1, 2025 (net of discount of $526 and $562) 499,474 499,438 3.875% Senior Notes due April 15, 2027 (net of discount of $356 and $375) 599,644 599,625 4.125% Senior Notes due May 1, 2028 (net of discount of $449 and $471) 499,551 499,529 Unsecured commercial paper notes 86,200 366,900 Capital lease obligations — 10,977 Tax increment financing due February 1, 2035 5,835 6,360 Debt issuance costs, net (15,704) (17,055) 2,574,038 2,864,690 Less: current portion (555) (1,950) Long-term portion $ 2,573,483 $ 2,862,740 At August 2, 2019, the Company maintained a $1.25 billion senior unsecured revolving credit facility (the “Revolving Facility”) that provides for the issuance of letters of credit up to $175.0 million and is scheduled to mature on February 22, 2022. Borrowings under the Revolving Facility bear interest at a rate equal to an applicable interest rate margin plus, at the Company’s option, either (a) LIBOR or (b) a base rate (which is usually equal to the prime rate). The applicable interest rate margin for borrowings as of August 2, 2019 was 1.10% for LIBOR borrowings and 0.10 % for base-rate borrowings. The Company is also required to pay a facility fee, payable on any used and unused commitment amounts of the Revolving Facility, and customary fees on letters of credit issued under the Revolving Facility. As of August 2, 2019, the commitment fee rate was 0.15%. The applicable interest rate margins for borrowings, the facility fees and the letter of credit fees under the Revolving Facility are subject to adjustment from time to time based on the Company’s long-term senior unsecured debt ratings. The Revolving Facility contains a number of customary affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to: incur additional liens; sell all or substantially all of the Company’s assets; consummate certain fundamental changes or change in the Company’s lines of business; and incur additional subsidiary indebtedness. The Revolving Facility also contains financial covenants which require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. As of August 2, 2019, the Company was in compliance with all such covenants. The Revolving Facility also contains customary events of default. As of August 2, 2019, the Company had no outstanding borrowings, outstanding letters of credit of $6.7 million, and borrowing availability of $1.24 billion under the Revolving Facility that, due to its intention to maintain borrowing availability related to the commercial paper program described below, could contribute incremental liquidity of $976.1 million. In addition, as of August 2, 2019, the Company had outstanding letters of credit of $42.7 million which were issued pursuant to separate agreements. As of August 2, 2019, the Company had a commercial paper program under which the Company may issue unsecured commercial paper notes (the “CP Notes”) from time to time in an aggregate amount not to exceed $1.0 billion outstanding at any time. The CP Notes may have maturities of up to 364 days from the date of issue and rank equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company intends to maintain available commitments under the Revolving Facility in an amount at least equal to the amount of CP Notes outstanding at any time. As of August 2, 2019, the Company’s condensed consolidated balance sheet reflected outstanding unsecured CP Notes of $86.2 million classified as long-term obligations due to its intent and ability to refinance these obligations as long-term debt. An additional $181.0 On April 10, 2018, the Company issued $500.0 million aggregate principal amount of 4.125% senior notes due 2028 (the “2028 Senior Notes”), net of discount of $0.5 million, which are scheduled to mature on May 1, 2028. Interest on the 2028 Senior Notes is payable in cash on May 1 and November 1 of each year. The Company incurred $4.4 million of debt issuance costs associated with the issuance of the 2028 Senior Notes. Effective April 15, 2018, the Company redeemed $400.0 million aggregate principal amount of outstanding 1.875% senior notes due 2018 (the “2018 Senior Notes”). There was no gain or loss associated with the redemption. The Company funded the redemption price for the 2018 Senior Notes with proceeds from the issuance of the 2028 Senior Notes. |
Assets and liabilities measured
Assets and liabilities measured at fair value | 6 Months Ended |
Aug. 02, 2019 | |
Assets and liabilities measured at fair value | |
Assets and liabilities measured at fair value | 6. Assets and liabilities measured at fair value Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The Company does not have any fair value measurements categorized within Level 3 as of August 2, 2019. The following table presents the Company’s liabilities required to be measured at fair value as of August 2, 2019, aggregated by the level in the fair value hierarchy within which those measurements are classified. Quoted Prices in Active Markets Significant for Identical Other Significant Total Fair Assets and Observable Unobservable Value at Liabilities Inputs Inputs August 2, (In thousands) (Level 1) (Level 2) (Level 3) 2019 Liabilities: Long-term obligations (a) $ 2,645,339 $ 92,035 $ — $ 2,737,374 Deferred compensation (b) 27,278 — — 27,278 (a) Included in the condensed consolidated balance sheet at book value as Current portion of long-term obligations of $555 and Long-term obligations of $2,573,483. (b) Reflected at fair value in the condensed consolidated balance sheet as Accrued expenses and other current liabilities of $2,131 and noncurrent Other liabilities of $25,147. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Aug. 02, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 7. Commitments and contingencies Legal proceedings From time to time, the Company is a party to various legal matters in the ordinary course of its business, including actions by employees, consumers, suppliers, government agencies, or others. The Company has recorded accruals with respect to these matters, where appropriate, which are reflected in the Company’s consolidated financial statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. In the 13-week period ended August 2, 2019, the Company recorded an accrual of Except as described below and based on information currently available, the Company believes that its pending legal matters, both individually and in the aggregate, will be resolved without a material adverse effect on the Company’s consolidated financial statements as a whole. However, litigation and other legal matters involve an element of uncertainty. Adverse decisions and settlements, including any required changes to the Company’s business, or other developments in such matters, including without limitation those matters disclosed in Note 6 to the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2019 under “ Wage and Hour/Employment Litigation,” Consumer/Product Litigation In December 2015 the Company was first notified of several lawsuits in which plaintiffs allege violation of state law, including state consumer protection laws, relating to the labeling, marketing and sale of certain Dollar General private-label motor oil. Each of these lawsuits, as well as additional, similar lawsuits filed after December 2015, was filed in, or removed to, various federal district courts of the United States (collectively “the Motor Oil Lawsuits”). On June 2, 2016, the United States Judicial Panel on Multidistrict Litigation (“JPML”) granted the Company’s motion to centralize the Motor Oil Lawsuits in a matter styled In re Dollar General Corp. Motor Oil Litigation , Case MDL No. 2709, before the United States District Court for the Western District of Missouri (“Motor Oil MDL”). Subsequently, plaintiffs in the Motor Oil MDL filed a consolidated amended complaint, in which they sought to certify nationwide classes and multiple statewide sub-classes and for each putative class member some or all of the following relief: compensatory damages, injunctive relief, statutory damages, punitive damages and attorneys’ fees. The Company’s motion to dismiss the allegations raised in the consolidated amended complaint was granted in part and denied in part on August 3, 2017. To the extent additional consumer lawsuits alleging violation of laws relating to the labeling, marketing and sale of Dollar General private-label motor oil have been or will be filed, the Company expects that such lawsuits will be transferred to the Motor Oil MDL. In May 2017, the Company received a Notice of Proposed Action from the Office of the New Mexico Attorney General (the “New Mexico AG”) which alleges that the Company’s labeling, marketing and sale of certain Dollar General private-label motor oil violated New Mexico law (the “New Mexico Motor Oil Matter”). The State is represented in connection with this matter by counsel for plaintiffs in the Motor Oil MDL. On June 20, 2017, the New Mexico AG filed an action in the First Judicial District Court, County of Santa Fe, New Mexico pertaining to the New Mexico Motor Oil Matter. ( Hector H. Balderas v. Dolgencorp, LLC , Case No. D-101-cv-2017-01562). The Company removed this matter to New Mexico federal court on July 26, 2017, and it was transferred to the Motor Oil MDL. ( Hector H. Balderas v. Dolgencorp, LLC , D.N.M., Case No. 1:17-cv-772). On April 23, 2019, the matter was remanded to state court, and on May 3, 2019, the Company moved to dismiss the action. On September 1, 2017, the Mississippi Attorney General (the “Mississippi AG”), who also is represented by the counsel for plaintiffs in the Motor Oil MDL, filed an action in the Chancery Court of the First Judicial District of Hinds County, Mississippi in which the Mississippi AG alleges that the Company’s labeling, marketing and sale of certain Dollar General private-label motor oil violated Mississippi law. ( Jim Hood v. Dollar General Corporation Jim Hood v. Dollar General Corporation On January 30, 2018, the Company received a Civil Investigative Demand (“CID”) from the Office of the Louisiana Attorney General requesting information concerning the Company’s labeling, marketing and sale of certain Dollar General private-label motor oil (the “Louisiana Motor Oil Matter”). In response to the CID, the Company filed a petition for a protective order on February 20, 2018 in the 19 th In re Dollar General Corp. and Dolgencorp, LLC , Case No. 666499). The Company’s petition is pending. On August 20, 2018, plaintiffs moved to certify two nationwide classes relating to their claims of alleged unjust enrichment and breach of implied warranties. In addition, plaintiffs moved to certify a multi-state class relating to their claims of breach of implied warranties and multiple statewide classes relating to alleged unfair trade practices/consumer fraud, unjust enrichment and breach of implied warranty claims. The Company opposed the plaintiffs’ certification motion. On March 21, 2019, the court granted the plaintiffs’ certification motion as to 16 statewide classes regarding claims of unjust enrichment and 16 statewide classes regarding state consumer protection laws. Subsequently, the court certified an additional class, bringing the total to 17 statewide classes. The court denied plaintiffs’ certification motion in all other respects. On June 25, 2019, the United States Court of Appeals for the Eighth Circuit granted the Company’s Petition to Appeal the lower court’s certification rulings. The Company is vigorously defending these matters and believes that the labeling, marketing and sale of its private-label motor oil comply with applicable federal and state requirements and are not misleading. The Company further believes that these matters are not appropriate for class or similar treatment. At this time, however, it is not possible to predict whether these matters ultimately will be permitted to proceed as a class or in a similar fashion or the size of any putative class or classes. Likewise, no assurances can be given that the Company will be successful in its defense of these matters on the merits or otherwise. The Company now believes that a loss in this matter is both probable and reasonably estimable, and during the 13-week period ended August 2, 2019, recorded an accrual for an amount that is immaterial to the Company’s consolidated financial statements as a whole. |
Segment reporting
Segment reporting | 6 Months Ended |
Aug. 02, 2019 | |
Segment reporting | |
Segment reporting | 8. Segment reporting The Company manages its business on the basis of one reportable operating segment. As of August 2, 2019, all of the Company’s operations were located within the United States with the exception of certain product sourcing operations in Hong Kong and China, which collectively are not material with regard to assets, results of operations or otherwise to the condensed consolidated financial statements. The following net sales data is presented in accordance with accounting standards related to disclosures about segments of an enterprise. 13 Weeks Ended 26 Weeks Ended August 2, August 3, August 2, August 3, (in thousands) 2019 2018 2019 2018 Classes of similar products: Consumables $ 5,428,005 $ 4,988,063 $ 10,641,160 $ 9,760,451 Seasonal 854,093 792,513 1,591,071 1,483,544 Home products 375,068 345,161 750,781 699,794 Apparel 324,587 317,572 621,926 613,983 Net sales $ 6,981,753 $ 6,443,309 $ 13,604,938 $ 12,557,772 |
Common stock transactions
Common stock transactions | 6 Months Ended |
Aug. 02, 2019 | |
Common stock transactions | |
Common stock transactions | 9. Common stock transactions On August 29, 2012, the Company’s Board of Directors authorized a common stock repurchase program, which the Board has since increased on several occasions. Most recently, on March 13, 2019, the Company’s Board of Directors authorized a $1.0 billion increase to the existing common stock repurchase program. As of August 2, 2019, a cumulative total of $7.0 billion had been authorized under the program since its inception and approximately $1.0 billion remained available for repurchase. The repurchase authorization has no expiration date and allows repurchases from time to time in the open market or in privately negotiated transactions. The timing and number of shares purchased depends on a variety of factors, such as price, market conditions, compliance with the covenants and restrictions under the Company’s debt agreements and other factors. Repurchases under the program may be funded from available cash or borrowings, including under the Company’s Revolving Facility and issuance of CP Notes discussed in further detail in Note 5. Pursuant to its common stock repurchase program, during the 26-week periods ended August 2, 2019 and August 3, 2018, the Company repurchased in the open market approximately 3.0 million shares of its common stock at a total cost of $385.0 million and approximately 3.7 million shares of its common stock at a total cost of $349.5 million, respectively. The Company paid a quarterly cash dividend of $0.32 per share during each of the first and second quarters of 2019. On August 28, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share, which is payable on or before October 22, 2019 to shareholders of record on October 8, 2019. The amount and declaration of future cash dividends is subject to the sole discretion of the Company’s Board of Directors and will depend upon, among other things, the Company’s results of operations, cash requirements, financial condition, contractual restrictions and other factors that the Board may deem relevant in its sole discretion. |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Aug. 02, 2019 | |
Earnings per share | |
Schedule of computation of earnings per share | Earnings per share is computed as follows (in thousands, except per share data): 13 Weeks Ended August 2, 2019 13 Weeks Ended August 3, 2018 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 426,555 257,793 $ 1.65 $ 407,237 266,457 $ 1.53 Effect of dilutive share-based awards 1,309 769 Diluted earnings per share $ 426,555 259,102 $ 1.65 $ 407,237 267,226 $ 1.52 26 Weeks Ended August 2, 2019 26 Weeks Ended August 3, 2018 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 811,568 258,407 $ 3.14 $ 772,089 267,362 $ 2.89 Effect of dilutive share-based awards 1,276 818 Diluted earnings per share $ 811,568 259,683 $ 3.13 $ 772,089 268,180 $ 2.88 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 02, 2019 | |
Leases | |
Schedule of operating lease liabilities maturity | (In thousands) 2019 $ 634,593 2020 1,238,277 2021 1,182,516 2022 1,112,780 2023 1,037,980 Thereafter 5,180,000 Total lease payments (a) 10,386,146 Less imputed interest (1,990,200) Present value of lease liabilities $ 8,395,946 a) Excludes approximately $0.7 billion of legally binding minimum lease payments for leases signed which have not yet commenced. |
Current and long-term obligat_2
Current and long-term obligations (Tables) | 6 Months Ended |
Aug. 02, 2019 | |
Current and long-term obligations | |
Schedule of current and long-term debt obligations | August 2, February 1, (In thousands) 2019 2019 Revolving Facility $ — $ — 3.250% Senior Notes due April 15, 2023 (net of discount of $962 and $1,084) 899,038 898,916 4.150% Senior Notes due November 1, 2025 (net of discount of $526 and $562) 499,474 499,438 3.875% Senior Notes due April 15, 2027 (net of discount of $356 and $375) 599,644 599,625 4.125% Senior Notes due May 1, 2028 (net of discount of $449 and $471) 499,551 499,529 Unsecured commercial paper notes 86,200 366,900 Capital lease obligations — 10,977 Tax increment financing due February 1, 2035 5,835 6,360 Debt issuance costs, net (15,704) (17,055) 2,574,038 2,864,690 Less: current portion (555) (1,950) Long-term portion $ 2,573,483 $ 2,862,740 |
Assets and liabilities measur_2
Assets and liabilities measured at fair value (Tables) | 6 Months Ended |
Aug. 02, 2019 | |
Assets and liabilities measured at fair value | |
Schedule of assets and liabilities measured at fair value | Quoted Prices in Active Markets Significant for Identical Other Significant Total Fair Assets and Observable Unobservable Value at Liabilities Inputs Inputs August 2, (In thousands) (Level 1) (Level 2) (Level 3) 2019 Liabilities: Long-term obligations (a) $ 2,645,339 $ 92,035 $ — $ 2,737,374 Deferred compensation (b) 27,278 — — 27,278 (a) Included in the condensed consolidated balance sheet at book value as Current portion of long-term obligations of $555 and Long-term obligations of $2,573,483. (b) Reflected at fair value in the condensed consolidated balance sheet as Accrued expenses and other current liabilities of $2,131 and noncurrent Other liabilities of $25,147. |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Aug. 02, 2019 | |
Segment reporting | |
Schedule of net sales grouped by classes of similar products | 13 Weeks Ended 26 Weeks Ended August 2, August 3, August 2, August 3, (in thousands) 2019 2018 2019 2018 Classes of similar products: Consumables $ 5,428,005 $ 4,988,063 $ 10,641,160 $ 9,760,451 Seasonal 854,093 792,513 1,591,071 1,483,544 Home products 375,068 345,161 750,781 699,794 Apparel 324,587 317,572 621,926 613,983 Net sales $ 6,981,753 $ 6,443,309 $ 13,604,938 $ 12,557,772 |
Basis of presentation (Details)
Basis of presentation (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 02, 2019USD ($) | Aug. 03, 2018USD ($) | Aug. 02, 2019USD ($) | Aug. 03, 2018USD ($) | Jan. 31, 2020period | Feb. 01, 2019period | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Fiscal year, number of weeks | period | 52 | 52 | ||||||
Merchandise inventories | ||||||||
LIFO provision | $ 3,200 | $ 3,400 | $ 6,600 | $ 5,500 | ||||
New accounting guidance | ||||||||
Lease, Practical Expedients, Package [true false] | true | |||||||
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true | true | ||||||
Lease, Practical Expedient, Use of Hindsight [true false] | false | |||||||
Operating lease assets | $ 8,405,346 | $ 8,405,346 | ||||||
Operating lease liabilities | 8,395,946 | 8,395,946 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 28,830 | $ (41,316) | 28,830 | $ (41,316) | ||||
Accounting Standards Update 2016-02 | ||||||||
New accounting guidance | ||||||||
Operating lease assets | $ 8,000,000 | |||||||
Operating lease liabilities | 8,000,000 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 28,800 | |||||||
Accounting Standards Update 2016-16 | ||||||||
New accounting guidance | ||||||||
Increase in deferred income tax liabilities | $ 41,300 | |||||||
Increase (Decrease) in retained earnings | $ (41,300) | |||||||
Accounting Standards Update 2018-02 | ||||||||
New accounting guidance | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 900 | $ 900 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | |
Net Income | ||||
Basic Earnings | $ 426,555 | $ 407,237 | $ 811,568 | $ 772,089 |
Diluted Earnings | $ 426,555 | $ 407,237 | $ 811,568 | $ 772,089 |
Shares | ||||
Shares outstanding, basic | 257,793 | 266,457 | 258,407 | 267,362 |
Effect of dilutive share-based awards | 1,309 | 769 | 1,276 | 818 |
Shares outstanding, diluted | 259,102 | 267,226 | 259,683 | 268,180 |
Per Share Amount | ||||
Basic earnings per share (in dollars per share) | $ 1.65 | $ 1.53 | $ 3.14 | $ 2.89 |
Diluted earnings per share (in dollars per share) | $ 1.65 | $ 1.52 | $ 3.13 | $ 2.88 |
Share-based awards outstanding excluded from computation of diluted earnings per share | 600 | 900 | 600 | 900 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | |
Income taxes | ||||
Reserves for uncertain tax benefits | $ 5 | $ 5 | ||
Interest accrued related to uncertain tax benefits | 1 | 1 | ||
Potential penalties accrued related to uncertain tax benefits | 0.9 | 0.9 | ||
Reserves for uncertain tax benefits included in noncurrent Other liabilities | 6.9 | 6.9 | ||
Reserve for uncertain tax positions that would impact effective tax rate if recognized | $ 5 | $ 5 | ||
Effective income tax rates (as a percent) | 22.90% | 21.50% | 21.90% | 21.60% |
Leases (Details)
Leases (Details) $ in Millions | 6 Months Ended |
Aug. 02, 2019USD ($) | |
Leases | |
Weighted-average remaining lease term | 10 years 2 months 12 days |
Weighed average discount rate | 4.40% |
Cash paid for operating leases | $ 626.3 |
Operating lease cost | 622.4 |
Variable lease cost | $ 120 |
Maximum | |
Leases | |
Typical period of primary lease term for operating lease, build-to-suit, maximum | 15 years |
Leases - Lease liabilities (Det
Leases - Lease liabilities (Details) $ in Thousands | 6 Months Ended |
Aug. 02, 2019USD ($) | |
Leases | |
2019 | $ 634,593 |
2020 | 1,238,277 |
2021 | 1,182,516 |
2022 | 1,112,780 |
2023 | 1,037,980 |
Thereafter | 5,180,000 |
Total lease payments (a) | 10,386,146 |
Less imputed interest | (1,990,200) |
Present value of lease liabilities | 8,395,946 |
Payments on leases not yet commenced | $ 700,000 |
Current and long-term obligat_3
Current and long-term obligations (Details) - USD ($) | Apr. 15, 2018 | Aug. 02, 2019 | Aug. 03, 2018 | Feb. 01, 2019 | Apr. 10, 2018 |
Current and long-term obligations | |||||
Debt issuance costs, net | $ (15,704,000) | $ (17,055,000) | |||
Current and long-term obligations | 2,574,038,000 | 2,864,690,000 | |||
Less: current portion | (555,000) | (1,950,000) | |||
Long-term obligations | 2,573,483,000 | 2,862,740,000 | |||
Repayment of long-term debt | $ 525,000 | $ 575,664,000 | |||
Loss on debt retirement | $ 1,019,000 | ||||
Senior unsecured credit facility | LIBOR loans | |||||
Current and long-term obligations | |||||
Variable rate basis | LIBOR | ||||
Spread on variable rate (as a percent) | 1.10% | ||||
Senior unsecured credit facility | Base-rate loans | |||||
Current and long-term obligations | |||||
Variable rate basis | base rate | ||||
Spread on variable rate (as a percent) | 0.10% | ||||
Senior unsecured credit facility, Revolving Facility | |||||
Current and long-term obligations | |||||
Current and long-term obligations | $ 0 | ||||
Maximum financing under credit agreements | $ 1,250,000,000 | ||||
Commitment fee rate | 0.15% | ||||
Borrowing availability under credit facility | $ 1,240,000,000 | ||||
Borrowing availability except for amount reserved for commercial paper program | 976,100,000 | ||||
Senior unsecured credit facility, Revolving Facility | Letters of credit | |||||
Current and long-term obligations | |||||
Maximum financing under credit agreements | 175,000,000 | ||||
Letters of credit outstanding | 6,700,000 | ||||
1.875% Senior Notes due April 15, 2018 | |||||
Current and long-term obligations | |||||
Stated interest rate (as a percent) | 1.875% | ||||
Loss on debt retirement | $ 0 | ||||
Principal amount of notes redeemed | $ 400,000,000 | ||||
3.25% Senior Notes due April 15, 2023 | |||||
Current and long-term obligations | |||||
Current and long-term obligations | 899,038,000 | 898,916,000 | |||
Discount on debt issuance | $ 962,000 | $ 1,084,000 | |||
Stated interest rate (as a percent) | 3.25% | 3.25% | |||
4.150% Senior Notes due Nov 1, 2025 | |||||
Current and long-term obligations | |||||
Current and long-term obligations | $ 499,474,000 | $ 499,438,000 | |||
Discount on debt issuance | $ 526,000 | $ 562,000 | |||
Stated interest rate (as a percent) | 4.15% | 4.15% | |||
3.875% Senior Notes due April 15. 2027 | |||||
Current and long-term obligations | |||||
Current and long-term obligations | $ 599,644,000 | $ 599,625,000 | |||
Discount on debt issuance | $ 356,000 | $ 375,000 | |||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||
4.125% Senior Notes due May 1, 2028 | |||||
Current and long-term obligations | |||||
Current and long-term obligations | $ 499,551,000 | $ 499,529,000 | |||
Discount on debt issuance | $ 449,000 | $ 471,000 | $ 500,000 | ||
Debt issue costs | 4,400,000 | ||||
Amount borrowed | $ 500,000,000 | ||||
Stated interest rate (as a percent) | 4.125% | 4.125% | 4.125% | ||
Unsecured commercial paper notes | |||||
Current and long-term obligations | |||||
Current and long-term obligations | $ 86,200,000 | $ 366,900,000 | |||
Maximum maturity | 364 days | ||||
Maximum aggregate borrowing amount | $ 1,000,000,000 | ||||
Weighted average interest rate (as a percent) | 2.50% | ||||
Unsecured commercial paper notes | Wholly-owned subsidiary | |||||
Current and long-term obligations | |||||
Long-term obligations | $ 181,000,000 | ||||
Capital lease obligations | |||||
Current and long-term obligations | |||||
Current and long-term obligations | 10,977,000 | ||||
Tax increment financing due February 1, 2035 | |||||
Current and long-term obligations | |||||
Current and long-term obligations | 5,835,000 | $ 6,360,000 | |||
Letter Of Credit Outside Of Revolving Facility | |||||
Current and long-term obligations | |||||
Letters of credit outstanding | $ 42,700,000 |
Assets and liabilities measur_3
Assets and liabilities measured at fair value (Details) $ in Thousands | Aug. 02, 2019USD ($) |
Reported amount | Current portion of long-term debt obligations | |
Liabilities: | |
Long-term obligations | $ 555 |
Reported amount | Long-term obligations | |
Liabilities: | |
Long-term obligations | 2,573,483 |
Reported amount | Accrued expenses and other current liabilities | |
Liabilities: | |
Deferred compensation | 2,131 |
Reported amount | Noncurrent Other liabilities | |
Liabilities: | |
Deferred compensation | 25,147 |
Fair value measurements on recurring basis | Balance at the end of the period | |
Liabilities: | |
Long-term obligations | 2,737,374 |
Deferred compensation | 27,278 |
Fair value measurements on recurring basis | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | |
Liabilities: | |
Long-term obligations | 2,645,339 |
Deferred compensation | 27,278 |
Fair value measurements on recurring basis | Significant Other Observable Inputs (Level 2) | |
Liabilities: | |
Long-term obligations | $ 92,035 |
Commitments and contingencies -
Commitments and contingencies - Legal proceedings (Details) - Pending litigation $ in Millions | Mar. 21, 2019item | Aug. 02, 2019USD ($) | Aug. 20, 2018item | Jun. 02, 2016item |
Legal proceedings | ||||
Expected possible loss | $ | $ 31 | |||
Motor Oil MDL | ||||
Legal proceedings | ||||
Number of nationwide classes | 2 | 2 | ||
Number of statewide classes regarding unjust enrichment | 16 | |||
Number of statewide classes regarding consumer protection laws | 16 |
Segment reporting (Details)
Segment reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019USD ($)segment | Aug. 03, 2018USD ($)segment | Aug. 02, 2019USD ($)segment | Aug. 03, 2018USD ($)segment | |
Net sales data for classes of similar products | ||||
Net sales | $ 6,981,753 | $ 6,443,309 | $ 13,604,938 | $ 12,557,772 |
Number of reportable segments | ||||
Number of reportable operating segments | segment | 1 | 1 | 1 | 1 |
Consumables | ||||
Net sales data for classes of similar products | ||||
Net sales | $ 5,428,005 | $ 4,988,063 | $ 10,641,160 | $ 9,760,451 |
Seasonal | ||||
Net sales data for classes of similar products | ||||
Net sales | 854,093 | 792,513 | 1,591,071 | 1,483,544 |
Home products | ||||
Net sales data for classes of similar products | ||||
Net sales | 375,068 | 345,161 | 750,781 | 699,794 |
Apparel | ||||
Net sales data for classes of similar products | ||||
Net sales | $ 324,587 | $ 317,572 | $ 621,926 | $ 613,983 |
Common stock transactions (Deta
Common stock transactions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Aug. 28, 2019 | Mar. 13, 2019 | Aug. 02, 2019 | May 03, 2019 | Aug. 03, 2018 | Aug. 02, 2019 | Aug. 03, 2018 |
Common stock transactions | |||||||
Aggregate purchase price | $ 184,988 | $ 199,537 | $ 384,974 | $ 349,538 | |||
Cash dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.64 | $ 0.58 | ||
Subsequent event | |||||||
Common stock transactions | |||||||
Cash dividend declared (in dollars per share) | $ 0.32 | ||||||
Common Stock | |||||||
Common stock transactions | |||||||
Shares acquired under share repurchase program | 1,353 | 2,096 | 3,039 | 3,685 | |||
Aggregate purchase price | $ 1,184 | $ 1,835 | $ 2,659 | $ 3,225 | |||
Common Stock | Pursuant to Authorized Repurchase Program | |||||||
Common stock transactions | |||||||
Common stock repurchase program, increase in the authorized amount | $ 1,000,000 | ||||||
Common stock repurchase authorization | 7,000,000 | 7,000,000 | |||||
Remaining authorization available under the common stock repurchase program | $ 1,000,000 | $ 1,000,000 | |||||
Shares acquired under share repurchase program | 3,000 | 3,700 | |||||
Aggregate purchase price | $ 385,000 | $ 349,500 |