Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 04, 2018 | Aug. 27, 2018 | |
Document and Entity Information [Text Block] [Abstract] | ||
Entity Registrant Name | Dollar Tree Inc | |
Entity Central Index Key | 935,703 | |
Current Fiscal Year End Date | --02-02 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 237,888,437 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 4, 2018 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,525.6 | $ 5,281.2 | $ 11,079.3 | $ 10,568.3 |
Cost of sales | 3,861.7 | 3,653.4 | 7,715.8 | 7,313.4 |
Gross profit | 1,663.9 | 1,627.8 | 3,363.5 | 3,254.9 |
Selling, general and administrative expenses, excluding Receivable impairment | 1,281.4 | 1,205.7 | 2,543.4 | 2,393.1 |
Receivable impairment | 0 | 2.6 | 0 | 53.5 |
Selling, general and administrative expenses, excluding Receivable impairment | 1,281.4 | 1,208.3 | 2,543.4 | 2,446.6 |
Operating income | 382.5 | 419.5 | 820.1 | 808.3 |
Interest expense, net | 46.1 | 75.8 | 276.1 | 150.5 |
Other (income) expense, net | (1.3) | 0.1 | (1.1) | 0.4 |
Income before income taxes | 337.7 | 343.6 | 545.1 | 657.4 |
Income tax expense | 63.8 | 109.8 | 110.7 | 223.1 |
Net income | $ 273.9 | $ 233.8 | $ 434.4 | $ 434.3 |
Basic net income per share (usd per share) | $ 1.15 | $ 0.99 | $ 1.83 | $ 1.84 |
Diluted net income per share (usd per share) | $ 1.15 | $ 0.98 | $ 1.82 | $ 1.83 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 273.9 | $ 233.8 | $ 434.4 | $ 434.3 |
Foreign currency translation adjustments | (1.3) | 8 | (5.2) | 5 |
Total comprehensive income | $ 272.6 | $ 241.8 | $ 429.2 | $ 439.3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 647.3 | $ 1,097.8 | $ 693.3 |
Short-term investments | 0 | 0 | 4 |
Merchandise inventories, net | 3,288.2 | 3,169.3 | 2,928.5 |
Other current assets | 337.3 | 309.2 | 189.4 |
Total current assets | 4,272.8 | 4,576.3 | 3,815.2 |
Property, plant and equipment, net of accumulated depreciation of $3,448.2, $3,192.1 and $2,941.8, respectively | 3,316.1 | 3,200.7 | 3,115.4 |
Assets available for sale | 6.9 | 8 | 10.4 |
Goodwill | 5,023.9 | 5,025.2 | 5,025.2 |
Favorable lease rights, net of accumulated amortization of $270.8, $230.9 and $202.8, respectively | 334.5 | 375.3 | 420.4 |
Tradename intangible asset | 3,100 | 3,100 | 3,100 |
Other intangible assets, net | 4.7 | 4.8 | 4.9 |
Other assets | 44.7 | 42.5 | 40.8 |
Total assets | 16,103.6 | 16,332.8 | 15,532.3 |
Current liabilities: | |||
Current portion of long-term debt | 0 | 915.9 | 165.9 |
Accounts payable | 1,241.7 | 1,174.8 | 1,196.3 |
Income taxes payable | 14.1 | 31.5 | 0 |
Other current liabilities | 651.6 | 736.9 | 722.5 |
Total current liabilities | 1,907.4 | 2,859.1 | 2,084.7 |
Long-term debt, net, excluding current portion | 5,041.8 | 4,762.1 | 5,595 |
Unfavorable lease rights, net of accumulated amortization of $71.7, $61.1 and $51.2, respectively | 89.2 | 100 | 111.5 |
Deferred tax liabilities, net | 976 | 985.2 | 1,449.8 |
Income taxes payable, long-term | 30.1 | 43.8 | 41.6 |
Other liabilities | 411.6 | 400.3 | 389.5 |
Total liabilities | 8,456.1 | 9,150.5 | 9,672.1 |
Shareholders’ equity | 7,647.5 | 7,182.3 | 5,860.2 |
Total liabilities and shareholders’ equity | $ 16,103.6 | $ 16,332.8 | $ 15,532.3 |
Common shares outstanding | 237.9 | 237.3 | 236.8 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Statement of Financial Position [Abstract] | |||
Accumulated Depreciation | $ 3,448.2 | $ 3,192.1 | $ 2,941.8 |
Accumulated Amortization, Favorable Lease Rights | 270.8 | 230.9 | 202.8 |
Accumulated Amortization, Unfavorable Lease Rights | $ 71.7 | $ 61.1 | $ 51.2 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 434.4 | $ 434.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 304 | 305.2 |
Provision for deferred taxes | (9.4) | (6.8) |
Amortization of debt discount and debt-issuance costs | 51.7 | 8.4 |
Receivable impairment | 0 | 53.5 |
Other non-cash adjustments to net income | 49.1 | 49.2 |
Loss on debt extinguishment | (114.7) | 0 |
Changes in operating assets and liabilities | (175.7) | (168.6) |
Net cash provided by operating activities | 768.8 | 675.2 |
Cash flows from investing activities: | ||
Capital expenditures | (394.3) | (271.7) |
Proceeds from (payments for) fixed asset disposition | (0.4) | 2.1 |
Net cash used in investing activities | (394.7) | (269.6) |
Cash flows from financing activities: | ||
Principal payments for long-term debt | (5,432.7) | (569.3) |
Proceeds from long-term debt, net of discount | 4,775.8 | 0 |
Debt-issuance and debt extinguishment costs | (155.3) | 0 |
Repayments of revolving credit facility | (50) | 0 |
Proceeds from revolving credit facility | 50 | 0 |
Proceeds from stock issued pursuant to stock-based compensation plans | 10.2 | 14.9 |
Cash paid for taxes on exercises/vesting of stock-based compensation | (21.7) | (24.7) |
Net cash used in financing activities | (823.7) | (579.1) |
Effect of exchange rate changes on cash and cash equivalents | (0.9) | 0.4 |
Net decrease in cash and cash equivalents | (450.5) | (173.1) |
Cash and cash equivalents at beginning of period | 1,097.8 | 866.4 |
Cash and cash equivalents at end of period | 647.3 | 693.3 |
Cash paid for: | ||
Interest, net of amounts capitalized | 277.7 | 143.7 |
Income taxes | 169.2 | 363.8 |
Non-cash transactions: | ||
Accrued capital expenditures | $ 46.4 | $ 37.6 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Aug. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Dollar Tree, Inc. and its wholly-owned subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018 . The results of operations for the 13 and 26 weeks ended August 4, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 2, 2019 . In the Company’s opinion, the unaudited condensed consolidated financial statements included herein contain all adjustments (including those of a normal recurring nature) considered necessary for a fair presentation of its financial position as of August 4, 2018 and July 29, 2017 and the results of its operations and cash flows for the periods presented. The February 3, 2018 balance sheet information was derived from the audited consolidated financial statements as of that date. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This update replaced existing revenue recognition guidance in GAAP and requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted the standard in the first quarter of fiscal 2018 and the adoption of the standard did not have an impact on the Company’s condensed consolidated financial statements or its internal control over financial reporting. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on eight specific cash flow issues in an effort to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified within the statement of cash flows. This standard is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The Company adopted the standard in the first quarter of fiscal 2018, resulting in the classification of $124.5 million of cash paid for debt extinguishment as a financing activity in the accompanying unaudited condensed consolidated statement of cash flows for the 26 weeks ended August 4, 2018. In February 2016, the FASB issued ASU No. 2016-02, “ Leases,” which will replace existing lease accounting guidance. The new standard will require lessees to recognize right-of-use assets and corresponding lease liabilities on the balance sheet for all in-scope leases with a term of greater than 12 months and disclose certain quantitative and qualitative information about leasing arrangements. When implemented, lessees will be required to recognize and measure leases using a modified retrospective approach, with optional practical expedients. The update is effective for interim and annual reporting periods beginning after December 15, 2018. The Company will adopt the standard in the first quarter of fiscal 2019. The Company has engaged a third party to assist in its preparation for implementation and its evaluation of the impact of the new pronouncement on its consolidated financial statements. The Company continues to assess the effect the implementation will have on its existing accounting policies and the consolidated financial statements and expects the adoption of this pronouncement to result in a material increase in the assets and liabilities on its consolidated balance sheets, with an immaterial impact on its consolidated income statements and consolidated statements of cash flows. Additionally, the Company is implementing lease accounting software to assist in the quantification of the expected impact on the consolidated balance sheets and to facilitate the calculations of the related accounting entries and disclosures. The Company is also evaluating additional changes to its processes and internal controls to ensure it is compliant with the reporting and disclosure requirements of the standard. As of February 3, 2018, the Company had $7.4 billion in undiscounted future minimum operating lease commitments. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Aug. 04, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt at August 4, 2018 , February 3, 2018 and July 29, 2017 consists of the following: As of August 4, 2018 As of February 3, 2018 As of July 29, 2017 (in millions) Principal Unamortized Debt Discount, Premium and Issuance Costs Principal Unamortized Debt Discount, Premium and Issuance Costs Principal Unamortized Debt Discount, Premium and Issuance Costs Forgivable Promissory Note $ — $ — $ — $ — $ 7.0 $ — 5.25% Acquisition Notes, due 2020 — — 750.0 6.1 750.0 7.4 5.75% Acquisition Notes, due 2023 — — 2,500.0 30.8 2,500.0 33.4 Term Loan A-1 — — 1,532.7 3.4 1,615.7 4.1 Term Loan B-2 — — 650.0 8.6 650.0 9.5 $1.25 billion Tranche A Revolving Credit Facility — — — 12.6 — 15.2 5.00% Senior Notes, due 2021 300.0 (5.7 ) 300.0 (6.8 ) 300.0 (7.8 ) $1.25 billion Revolving Credit Facility, interest payable at LIBOR, reset periodically, plus 1.125%, which was 3.20% at August 4, 2018 — 11.4 — — — — Term Loan Facility, due 2020, interest payable at LIBOR, reset periodically, plus 0.95%, which was 3.03% at August 4, 2018 782.0 2.2 — — — — Senior Floating Rate Notes, due 2020, interest payable at LIBOR, reset quarterly, plus 0.70%, which was 3.04% at August 4, 2018 750.0 4.5 — — — — 3.70% Senior Notes, due 2023 1,000.0 8.4 — — — — 4.00% Senior Notes, due 2025 1,000.0 7.7 — — — — 4.20% Senior Notes, due 2028 1,250.0 11.7 — — — — Total $ 5,082.0 $ 40.2 $ 5,732.7 $ 54.7 $ 5,822.7 $ 61.8 Senior Credit Facilities On April 19, 2018, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, providing for $2.03 billion in senior credit facilities (the “Senior Credit Facilities”), consisting of a $1.25 billion revolving credit facility (the “Revolving Credit Facility”), of which up to $350.0 million is available for letters of credit, and a $782.0 million term loan facility (the “Term Loan Facility”). The Company borrowed the entire $782.0 million Term Loan Facility on April 19, 2018. The Revolving Credit Facility matures on April 19, 2023, subject to extensions permitted under the Credit Agreement. The Term Loan Facility matures on April 19, 2020. The loans under the Revolving Credit Facility bore interest at an initial interest rate of LIBOR, reset periodically, plus 1.25% and the loans under the Term Loan Facility bore interest at an initial interest rate of LIBOR, reset periodically, plus 1.00% , subject to adjustment based on (i) the Company’s credit ratings and (ii) the Company’s leverage ratio. Based on these factors, interest on the loans under the Revolving Credit Facility may range from LIBOR plus 1.00% to 1.50% and interest on the loans under the Term Loan Facility may range from LIBOR plus 0.875% to 1.25% . At August 4, 2018 , the Revolving Credit Facility bore interest at LIBOR plus 1.125% and the Term Loan Facility bore interest at LIBOR plus 0.95% . The Company pays certain commitment fees in connection with the Revolving Credit Facility. The Senior Credit Facilities allow voluntary repayment of outstanding loans at any time without premium or penalty, other than customary breakage costs with respect to LIBOR loans. There is no required amortization under the Senior Credit Facilities. The Senior Credit Facilities contain a number of affirmative and negative covenants that, among other things, and subject to certain significant baskets and exceptions, restrict the Company’s ability to incur subsidiary indebtedness, incur liens, sell all or substantially all of the Company’s (including the Company’s subsidiaries’) assets and consummate certain fundamental changes. The Senior Credit Facilities also contain a maximum rent-adjusted leverage ratio covenant and a minimum fixed charge coverage ratio covenant. The Credit Agreement provides for certain events of default which, if any of them occurs, would permit or require the loans under the Senior Credit Facilities to be declared due and payable and the commitments thereunder to be terminated. Senior Notes On April 19, 2018, the Company completed the registered offering of $750.0 million aggregate principal amount of Senior Floating Rate Notes due 2020 (the “Floating Rate Notes”), $1.0 billion aggregate principal amount of 3.70% Senior Notes due 2023 (the “2023 Notes”), $1.0 billion aggregate principal amount of 4.00% Senior Notes due 2025 (the “2025 Notes”) and $1.25 billion aggregate principal amount of 4.20% Senior Notes due 2028 (the “2028 Notes” and together with the 2023 Notes and the 2025 Notes, the “Fixed Rate Notes”; and the Fixed Rate Notes together with the Floating Rate Notes, the “Notes”). The Notes were issued pursuant to an indenture, dated as of April 2, 2018, between the Company and U.S. Bank National Association, as trustee, as supplemented by the First Supplemental Indenture dated as of April 19, 2018 (the “First Supplemental Indenture”). The Notes are unsecured, unsubordinated obligations of the Company and rank equal in right of payment to all of the Company’s existing and future debt and other obligations that are not, by their terms, expressly subordinated in right of payment to the Notes. The 2023 Notes mature on May 15, 2023 and bear interest at the rate of 3.70% annually. The 2025 Notes mature on May 15, 2025 and bear interest at the rate of 4.00% annually. The 2028 Notes mature on May 15, 2028 and bear interest at the rate of 4.20% annually. The Company is required to pay interest on the Fixed Rate Notes semiannually, in arrears, on May 15 and November 15 of each year, beginning on November 15, 2018, to holders of record on the preceding May 1 and November 1, respectively. The Floating Rate Notes mature on April 17, 2020 and bear interest at a floating rate, reset quarterly, equal to LIBOR plus 70 basis points. The Company is required to pay interest on the Floating Rate Notes quarterly, in arrears, on January 17, April 17, July 17 and October 17 of each year, beginning on July 17, 2018, to holders of record on the preceding January 3, April 3, July 3 and October 3, respectively. The Company may redeem the Floating Rate Notes in whole or in part at any time beginning on April 22, 2019 at a price equal to 100% of the principal amount of Floating Rate Notes being redeemed plus accrued but unpaid interest to, but excluding, the redemption date. The Company may redeem the Fixed Rate Notes of each series in whole or in part, at its option, at any time and from time to time prior to (i) in the case of the 2023 Notes, April 15, 2023, (ii) in the case of the 2025 Notes, March 15, 2025 and (iii) in the case of the 2028 Notes, February 15, 2028 (each such date with respect to the applicable series, the “Applicable Par Call Date”), in each case, at a “make-whole” price described in the First Supplemental Indenture plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, on or after the Applicable Par Call Date, the Company may redeem the Fixed Rate Notes of the applicable series, at any time in whole or from time to time in part, at a redemption price equal to 100% of the principal amount thereof. In the event of a Change of Control Triggering Event, as defined in the indenture, with respect to any series, the holders of the Notes of such series may require the Company to purchase for cash all or a portion of their Notes of such series at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. The indenture limits the ability of the Company and its subsidiaries, subject to significant baskets and exceptions, to incur certain secured debt. The First Supplemental Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or to be declared due and payable, as applicable. Repayments of Long-term debt in the first quarter of 2018 The Company redeemed its $750.0 million aggregate principal amount of 5.25% Acquisition Notes due 2020 (the “2020 Notes”) and accelerated the amortization of debt-issuance costs associated with the 2020 Notes of $6.1 million to the first quarter ended May 5, 2018. In connection with entry into the Credit Agreement and the offering of the Notes discussed above, the Company used the proceeds of borrowings under the Senior Credit Facilities, together with the net proceeds from the offering of the Notes and cash on hand to repay all of the outstanding loans under its existing senior secured credit facilities, including its Term Loan A-1 and Term Loan B-2, and redeem all of its outstanding 5.75% Acquisition Notes due 2023. The credit agreement governing the existing senior secured credit facilities, dated as of March 9, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Existing Credit Agreement”) was terminated and all of the guarantees of the obligations under the Existing Credit Agreement were terminated and all liens granted under the Existing Credit Agreement, including those equally and ratably securing the $300.0 million 5.00% Senior Notes due 2021 issued by the Company’s subsidiary, Family Dollar Stores, Inc., were released. Upon the termination of the Existing Credit Agreement, the Company paid certain lenders thereunder a prepayment premium of $6.5 million , which was equal to 1.00% of the outstanding principal amount of the Term Loan B-2 loans under the Existing Credit Agreement and is included in “Interest expense, net” on the accompanying unaudited condensed consolidated income statements for the 26 weeks ended August 4, 2018. The Company redeemed all of its outstanding $2.5 billion aggregate principal amount of 5.75% Acquisition Notes due 2023 and the indenture governing the notes was satisfied and discharged. The Company paid a redemption premium of $107.8 million , which was equal to 4.313% of the outstanding principal amount of the Acquisition Notes due 2023 and is included in “Interest expense, net” on the accompanying unaudited condensed consolidated income statements for the 26 weeks ended August 4, 2018. Related to the redemption of the 5.75% Acquisition Notes due 2023 and the repayment of the Company’s Existing Credit Agreement, the Company accelerated the expensing of approximately $41.2 million of amortizable non-cash deferred financing costs and expensed approximately $0.4 million in transaction-related costs to the first quarter ended May 5, 2018. Additionally, the Company capitalized approximately $36.9 million of deferred financing costs and recorded an original issue discount in connection with entry into the Credit Agreement and the offering of the Notes, which are being amortized over the terms of the Senior Credit Facilities and Notes. Debt Covenants As of August 4, 2018 , the Company was in compliance with its debt covenants. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Aug. 04, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate was 18.9% for the 13 weeks ended August 4, 2018 compared with 32.0% for the 13 weeks ended July 29, 2017 and 20.3% for the 26 weeks ended August 4, 2018 compared with 33.9% for the 26 weeks ended July 29, 2017 . The 2017 Tax Cuts and Jobs Act (“TCJA”) reduced the federal corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. As a result, the 2018 federal statutory tax rate is 21% . In the fourth quarter of 2017, the Company recorded a tax benefit based on currently available information and interpretations related to the TCJA, which are continuing to evolve, and as a result, the benefit is considered provisional. The Company will continue its analysis related to the TCJA as supplemental legislation, regulatory guidance, or evolving technical interpretations become available and will continue to refine such provisional amounts within the measurement period as provided by Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. The Company expects to complete its analysis no later than December 2018. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Aug. 04, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | LEGAL PROCEEDINGS The Company is a defendant in legal proceedings including those described below and will vigorously defend itself in these matters. The Company does not believe that any of these matters will, individually or in the aggregate, have a material effect on its business or financial condition. The Company cannot give assurance, however, that one or more of these matters will not have a material effect on its results of operations for the quarter or year in which they are resolved. The Company assesses its legal proceedings and reserves are established if a loss is probable and the amount of such loss can be reasonably estimated. Many if not substantially all of the contingencies described below are subject to significant uncertainties and, therefore, determining the likelihood of a loss and the measurement of any loss can be complex and subject to judgment. With respect to legal proceedings where the Company has determined that a loss is reasonably possible but not probable, the Company is unable to estimate the amount or range of the reasonably possible loss due to the inherent difficulty of predicting the outcome of and uncertainties regarding legal proceedings. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Management’s assessment of legal proceedings could change because of future determinations or the discovery of facts which are not presently known. Accordingly, the ultimate costs of resolving these proceedings may be substantially higher or lower than currently estimated. Dollar Tree Active Matters In April 2015, a distribution center employee filed a class action in California state court with allegations concerning wages, meal and rest breaks, recovery periods, wage statements and timely termination pay. The employee filed an amended complaint in which he abandoned his attempt to certify a nation-wide class of non-exempt distribution center employees for alleged improper calculation of overtime compensation. The Company removed this lawsuit to federal court. The court certified the case as a state-wide class action. In April 2015, a former store manager filed a class action in California federal court alleging, among other things, that the Company failed to make wage statements readily available to employees who did not receive paper checks. On November 7, 2017, the jury found in favor of the Company. The plaintiff has filed an appeal from the verdict. In April 2016, the Company was served with a putative class action in Florida state court brought by a former store employee asserting the Company violated the Fair Credit Reporting Act in the way it handled background checks. The plaintiff is seeking statutory damages of $100 to $1,000 per violation for the disclosure form claims. In July 2017, two former employees filed suit in federal court in California, seeking to represent a class of current and former non-exempt employees alleging that the Company’s dress code required them to purchase such distinctive clothing that it constituted a uniform and the Company’s failure to reimburse them for the clothing violated California law. The former employees seek restitution, damages, penalties and injunctive relief. The Company entered into a settlement agreement which was recently rejected by the court. The parties are reconsidering the terms of the settlement. The Company has accrued the amount in the rejected agreement. In August 2017, 43 current and former employees filed suit against the Company in state court in California alleging improper classification as exempt employees which they allege resulted in, among other things, their failure to receive overtime compensation, rest and meal periods, accurate wage statements, and final pay upon termination of employment. The Company removed the case to federal court. As required by that court’s order, each plaintiff refiled his or her case individually so that the cases would be tried individually and not as a class. In June 2018, the Company mediated the 43 cases together. The expected settlement amount is immaterial and has been accrued. In August 2017, a former employee brought suit in California state court on a Private Attorney General Act ("PAGA") representative basis alleging the Company failed to provide him and all other California store associates with suitable seating when they were performing cashier functions. The parties are engaged in discovery. Several lawsuits have been filed against Dollar Tree, Family Dollar and their vendors alleging that personal powder products caused cancer. The Company does not believe the products it sold caused the illnesses. The Company believes these lawsuits are insured and is being indemnified by its third party vendors. Dollar Tree Resolved Matters In November 2017, a current employee filed a PAGA representative action in California state court alleging the Company failed to make wage statements readily available to California store employees who do not receive paper checks. The lawsuit has been dismissed with prejudice. In February 2018, a current store manager filed a statewide class action in Missouri state court alleging the Company’s store managers are improperly classified as exempt employees thereby entitling them to overtime pay, liquidated damages and damages for unjust enrichment. The case was dismissed with prejudice. Family Dollar Active Matters In January 2017, a customer filed a class action in federal court in Illinois alleging the Company violated various state consumer fraud laws as well as express and implied warranties by selling a product that purported to contain aloe when it did not. The requested class is limited to the state of Illinois. The Company believes that it is fully indemnified by the entities that supplied it with the product. In April 2017, a former store employee filed a lawsuit in California state court alleging off the clock work primarily for bag checks, failure to provide rest and meal breaks, and related claims. The court granted the Company’s motion to compel arbitration and stayed the case pending the outcome of the arbitration proceedings. Subsequently, the court allowed the plaintiff to amend her complaint to include PAGA claims which are not subject to arbitration. However, those claims remain stayed pending the outcome of the arbitration proceeding. In December 2017, a former assistant store manager filed suit in California state court asserting PAGA claims on behalf of herself and other store managers and assistant store managers seeking wages for alleged off the clock work, noncompliant rest and meal breaks and related claims. In January 2018, a former store manager and a former assistant store manager filed suit in California state court asserting class claims on behalf of themselves and their respective classes seeking to recover for working off the clock, noncompliant rest and meal periods and related claims. In June 2018, a former store manager filed suit in California state court asserting class and PAGA claims on behalf of himself and a class of current and former employees for alleged off the clock work, alleged failure to receive compliant rest and meal breaks and related claims. In August 2018, a former store manager filed a nationwide collective action in federal court in Texas asserting that she and other similarly situated store managers were improperly classified as exempt employees and are therefore owed overtime pay and other related compensation. Family Dollar Resolved Matters In June 2017, a former store employee filed suit in California state court asserting PAGA claims on behalf of herself and other allegedly aggrieved employees alleging the Company willfully caused their work time to go under reported so they failed to receive pay for time worked and related claims. The lawsuit has been dismissed without prejudice. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As required, financial assets and liabilities are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The carrying amounts of Cash and cash equivalents and Accounts payable as reported in the Company’s unaudited condensed consolidated balance sheets approximate fair value due to their short-term maturities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table sets forth the Company’s financial assets and liabilities that are measured at fair value on a recurring basis: (in millions) August 4, February 3, July 29, Level 1 Short-term investments $ — $ — $ 4.0 Deferred compensation plan assets 22.5 20.7 19.4 Deferred compensation plan assets are held pursuant to deferred compensation plans for certain officers and executives. The deferred compensation plan assets are recorded in "Other assets" on the accompanying unaudited condensed consolidated balance sheets and a corresponding liability is recorded in "Other liabilities" on the accompanying unaudited condensed consolidated balance sheets. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The Company did not record any significant impairment charges during the 13 or 26 weeks ended August 4, 2018 . The aggregate fair values and carrying values of the Company’s long-term borrowings were as follows: August 4, 2018 February 3, 2018 July 29, 2017 (in millions) Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes and Acquisition Notes $ 4,288.7 $ 4,273.4 $ 3,684.6 $ 3,519.9 $ 3,745.7 $ 3,517.0 Level 2 Term loans 774.2 779.8 2,187.6 2,170.7 2,275.5 2,252.1 The fair values of the Company’s 5.00% Senior Notes due 2021 and the Notes (collectively, the “Senior Notes”), and the fair values of the 5.25% Acquisition Notes due 2020 and 5.75% Acquisition Notes due 2023 (together, “the Acquisition Notes”) that were redeemed during the first quarter of 2018, were determined using Level 1 inputs as quoted prices in active markets for identical assets or liabilities are available. The fair value of the Company’s Term Loan Facility and the fair values of the Term Loan A-1 and Term Loan B-2, which the Company prepaid in full during the first quarter of 2018, were determined using Level 2 inputs as quoted prices are readily available from pricing services, but the prices are not published. The carrying values of the Company’s Revolving Credit Facility at August 4, 2018 and the Company’s Tranche A Revolving Credit Facility at February 3, 2018 and July 29, 2017, approximated their fair values because the interest rates vary with market interest rates. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Aug. 04, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The following table sets forth the calculations of basic and diluted net income per share: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions, except per share data) 2018 2017 2018 2017 Basic net income per share: Net income $ 273.9 $ 233.8 $ 434.4 $ 434.3 Weighted average number of shares outstanding 237.9 236.7 237.7 236.5 Basic net income per share $ 1.15 $ 0.99 $ 1.83 $ 1.84 Diluted net income per share: Net income $ 273.9 $ 233.8 $ 434.4 $ 434.3 Weighted average number of shares outstanding 237.9 236.7 237.7 236.5 Dilutive effect of stock options and restricted stock (as 0.7 0.7 0.8 0.9 Weighted average number of shares and dilutive potential shares 238.6 237.4 238.5 237.4 Diluted net income per share $ 1.15 $ 0.98 $ 1.82 $ 1.83 For the 13 and 26 weeks ended August 4, 2018 and July 29, 2017 , substantially all of the stock options outstanding were included in the calculation of the weighted average number of shares and dilutive potential shares outstanding. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Aug. 04, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION For a discussion of the Company’s stock-based compensation plans, refer to “Note 9 - Stock-Based Compensation Plans” of the Company’s Annual Report on Form 10-K for the year ended February 3, 2018 . The Company’s stock-based compensation expense primarily includes the fair value of restricted stock units (RSUs) and employees’ purchase rights under the Company’s Employee Stock Purchase Plan. Stock-based compensation expense was $47.6 million and $40.1 million during the 26 weeks ended August 4, 2018 and July 29, 2017 , respectively. Restricted Stock The Company issues service-based RSUs to employees and officers and issues performance-based RSUs to certain officers of the Company. The Company recognizes expense based on the estimated fair value of the RSUs granted over the requisite service period, which is generally three years, on a straight-line basis or a shorter period based on the retirement eligibility of the grantee. The fair value of RSUs is determined using the Company’s closing stock price on the date of grant. The following table summarizes the status of RSUs as of August 4, 2018 and changes during the 26 weeks then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at February 3, 2018 1,525,252 $ 79.37 Granted 783,366 94.87 Vested (628,406 ) 79.78 Forfeited (37,368 ) 83.27 Nonvested at August 4, 2018 1,642,844 $ 86.53 |
SEGMENTS
SEGMENTS | 6 Months Ended |
Aug. 04, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS The Company operates a chain of more than 15,000 retail discount stores in 48 states and five Canadian provinces. The Company’s operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. The Company defines its segments as those operations whose results its chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Dollar Tree segment is the leading operator of discount variety stores offering merchandise at the fixed price of $1.00 . The Dollar Tree segment includes the Company’s operations under the “Dollar Tree” and “Dollar Tree Canada” brands, 12 distribution centers in the United States, two distribution centers in Canada and a Store Support Center in Chesapeake, Virginia. The Family Dollar segment operates a chain of general merchandise retail discount stores providing consumers with a selection of competitively-priced merchandise in convenient neighborhood stores. The Family Dollar segment consists of the Company’s operations under the “Family Dollar” brand, 11 distribution centers and a Store Support Center in Matthews, North Carolina. The Company measures the results of its segments using, among other measures, each segment’s net sales, gross profit and operating income. The Company may revise the measurement of each segment’s operating income, including the allocation of distribution center and Store Support Center costs, as determined by the information regularly reviewed by the CODM. If the measurement of a segment changes, prior period amounts and balances would be reclassified to be comparable to the current period’s presentation. Net sales by segment are as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Net sales: Dollar Tree $ 2,768.8 $ 2,586.9 $ 5,553.2 $ 5,158.6 Family Dollar 2,756.8 2,694.3 5,526.1 5,409.7 Total net sales $ 5,525.6 $ 5,281.2 $ 11,079.3 $ 10,568.3 Gross profit by segment is as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Gross profit: Dollar Tree $ 955.3 $ 895.8 $ 1,916.1 $ 1,792.5 Family Dollar 708.6 732.0 1,447.4 1,462.4 Total gross profit $ 1,663.9 $ 1,627.8 $ 3,363.5 $ 3,254.9 Depreciation and amortization expense by segment is as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Depreciation and amortization expense: Dollar Tree $ 65.8 $ 62.7 $ 129.7 $ 124.2 Family Dollar 86.8 88.7 174.4 181.1 Total depreciation and amortization expense $ 152.6 $ 151.4 $ 304.1 $ 305.3 Operating income by segment is as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Operating income: Dollar Tree $ 297.7 $ 289.1 $ 627.9 $ 604.5 Family Dollar 84.8 130.4 192.2 203.8 Total operating income $ 382.5 $ 419.5 $ 820.1 $ 808.3 Capital expenditures by segment are as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Capital expenditures: Dollar Tree $ 149.9 $ 87.7 $ 267.1 $ 153.4 Family Dollar 63.5 73.7 127.2 118.3 Total capital expenditures $ 213.4 $ 161.4 $ 394.3 $ 271.7 Total assets by segment are as follows: As of August 4, February 3, July 29, (in millions) 2018 2018 2017 Total assets: Dollar Tree $ 4,054.4 $ 4,113.4 $ 3,555.9 Family Dollar 12,049.2 12,219.4 11,976.4 Total assets $ 16,103.6 $ 16,332.8 $ 15,532.3 Total goodwill by segment is as follows: As of August 4, February 3, July 29, (in millions) 2018 2018 2017 Total goodwill: Dollar Tree $ 356.5 $ 347.1 $ 347.1 Family Dollar 4,667.4 4,678.1 4,678.1 Total goodwill $ 5,023.9 $ 5,025.2 $ 5,025.2 Goodwill is reassigned between segments when stores are rebannered between segments. In the 26 weeks ended August 4, 2018, the Company reassigned $10.7 million of goodwill from Family Dollar to Dollar Tree as a result of rebannering. There were no stores rebannered between segments in the 26 weeks ended July 29, 2017. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Aug. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This update replaced existing revenue recognition guidance in GAAP and requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted the standard in the first quarter of fiscal 2018 and the adoption of the standard did not have an impact on the Company’s condensed consolidated financial statements or its internal control over financial reporting. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on eight specific cash flow issues in an effort to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified within the statement of cash flows. This standard is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The Company adopted the standard in the first quarter of fiscal 2018, resulting in the classification of $124.5 million of cash paid for debt extinguishment as a financing activity in the accompanying unaudited condensed consolidated statement of cash flows for the 26 weeks ended August 4, 2018. In February 2016, the FASB issued ASU No. 2016-02, “ Leases,” which will replace existing lease accounting guidance. The new standard will require lessees to recognize right-of-use assets and corresponding lease liabilities on the balance sheet for all in-scope leases with a term of greater than 12 months and disclose certain quantitative and qualitative information about leasing arrangements. When implemented, lessees will be required to recognize and measure leases using a modified retrospective approach, with optional practical expedients. The update is effective for interim and annual reporting periods beginning after December 15, 2018. The Company will adopt the standard in the first quarter of fiscal 2019. The Company has engaged a third party to assist in its preparation for implementation and its evaluation of the impact of the new pronouncement on its consolidated financial statements. The Company continues to assess the effect the implementation will have on its existing accounting policies and the consolidated financial statements and expects the adoption of this pronouncement to result in a material increase in the assets and liabilities on its consolidated balance sheets, with an immaterial impact on its consolidated income statements and consolidated statements of cash flows. Additionally, the Company is implementing lease accounting software to assist in the quantification of the expected impact on the consolidated balance sheets and to facilitate the calculations of the related accounting entries and disclosures. The Company is also evaluating additional changes to its processes and internal controls to ensure it is compliant with the reporting and disclosure requirements of the standard. As of February 3, 2018, the Company had $7.4 billion in undiscounted future minimum operating lease commitments. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt at August 4, 2018 , February 3, 2018 and July 29, 2017 consists of the following: As of August 4, 2018 As of February 3, 2018 As of July 29, 2017 (in millions) Principal Unamortized Debt Discount, Premium and Issuance Costs Principal Unamortized Debt Discount, Premium and Issuance Costs Principal Unamortized Debt Discount, Premium and Issuance Costs Forgivable Promissory Note $ — $ — $ — $ — $ 7.0 $ — 5.25% Acquisition Notes, due 2020 — — 750.0 6.1 750.0 7.4 5.75% Acquisition Notes, due 2023 — — 2,500.0 30.8 2,500.0 33.4 Term Loan A-1 — — 1,532.7 3.4 1,615.7 4.1 Term Loan B-2 — — 650.0 8.6 650.0 9.5 $1.25 billion Tranche A Revolving Credit Facility — — — 12.6 — 15.2 5.00% Senior Notes, due 2021 300.0 (5.7 ) 300.0 (6.8 ) 300.0 (7.8 ) $1.25 billion Revolving Credit Facility, interest payable at LIBOR, reset periodically, plus 1.125%, which was 3.20% at August 4, 2018 — 11.4 — — — — Term Loan Facility, due 2020, interest payable at LIBOR, reset periodically, plus 0.95%, which was 3.03% at August 4, 2018 782.0 2.2 — — — — Senior Floating Rate Notes, due 2020, interest payable at LIBOR, reset quarterly, plus 0.70%, which was 3.04% at August 4, 2018 750.0 4.5 — — — — 3.70% Senior Notes, due 2023 1,000.0 8.4 — — — — 4.00% Senior Notes, due 2025 1,000.0 7.7 — — — — 4.20% Senior Notes, due 2028 1,250.0 11.7 — — — — Total $ 5,082.0 $ 40.2 $ 5,732.7 $ 54.7 $ 5,822.7 $ 61.8 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The following table sets forth the Company’s financial assets and liabilities that are measured at fair value on a recurring basis: (in millions) August 4, February 3, July 29, Level 1 Short-term investments $ — $ — $ 4.0 Deferred compensation plan assets 22.5 20.7 19.4 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculations of basic and diluted net income per share: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions, except per share data) 2018 2017 2018 2017 Basic net income per share: Net income $ 273.9 $ 233.8 $ 434.4 $ 434.3 Weighted average number of shares outstanding 237.9 236.7 237.7 236.5 Basic net income per share $ 1.15 $ 0.99 $ 1.83 $ 1.84 Diluted net income per share: Net income $ 273.9 $ 233.8 $ 434.4 $ 434.3 Weighted average number of shares outstanding 237.9 236.7 237.7 236.5 Dilutive effect of stock options and restricted stock (as 0.7 0.7 0.8 0.9 Weighted average number of shares and dilutive potential shares 238.6 237.4 238.5 237.4 Diluted net income per share $ 1.15 $ 0.98 $ 1.82 $ 1.83 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Net sales by segment are as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Net sales: Dollar Tree $ 2,768.8 $ 2,586.9 $ 5,553.2 $ 5,158.6 Family Dollar 2,756.8 2,694.3 5,526.1 5,409.7 Total net sales $ 5,525.6 $ 5,281.2 $ 11,079.3 $ 10,568.3 Gross profit by segment is as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Gross profit: Dollar Tree $ 955.3 $ 895.8 $ 1,916.1 $ 1,792.5 Family Dollar 708.6 732.0 1,447.4 1,462.4 Total gross profit $ 1,663.9 $ 1,627.8 $ 3,363.5 $ 3,254.9 Depreciation and amortization expense by segment is as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Depreciation and amortization expense: Dollar Tree $ 65.8 $ 62.7 $ 129.7 $ 124.2 Family Dollar 86.8 88.7 174.4 181.1 Total depreciation and amortization expense $ 152.6 $ 151.4 $ 304.1 $ 305.3 Operating income by segment is as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Operating income: Dollar Tree $ 297.7 $ 289.1 $ 627.9 $ 604.5 Family Dollar 84.8 130.4 192.2 203.8 Total operating income $ 382.5 $ 419.5 $ 820.1 $ 808.3 Capital expenditures by segment are as follows: 13 Weeks Ended 26 Weeks Ended August 4, July 29, August 4, July 29, (in millions) 2018 2017 2018 2017 Capital expenditures: Dollar Tree $ 149.9 $ 87.7 $ 267.1 $ 153.4 Family Dollar 63.5 73.7 127.2 118.3 Total capital expenditures $ 213.4 $ 161.4 $ 394.3 $ 271.7 Total assets by segment are as follows: As of August 4, February 3, July 29, (in millions) 2018 2018 2017 Total assets: Dollar Tree $ 4,054.4 $ 4,113.4 $ 3,555.9 Family Dollar 12,049.2 12,219.4 11,976.4 Total assets $ 16,103.6 $ 16,332.8 $ 15,532.3 Total goodwill by segment is as follows: As of August 4, February 3, July 29, (in millions) 2018 2018 2017 Total goodwill: Dollar Tree $ 356.5 $ 347.1 $ 347.1 Family Dollar 4,667.4 4,678.1 4,678.1 Total goodwill $ 5,023.9 $ 5,025.2 $ 5,025.2 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Undiscounted future minimum operating lease commitments | $ 7,400 | |
Accounting Standards Update 2016-15 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash paid for debt extinguishment | $ 124.5 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) | Aug. 04, 2018 | May 05, 2018 | Aug. 04, 2018 | Apr. 19, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 5,082,000,000 | $ 5,082,000,000 | $ 5,732,700,000 | $ 5,822,700,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 40,200,000 | 40,200,000 | 54,700,000 | 61,800,000 | ||
3.70% Note, Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 3.70% | |||||
4.00% Note, Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 4.00% | |||||
4.20% Note, Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 4.20% | |||||
Forgivable Promissory Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | 0 | 7,000,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 0 | 0 | 0 | 0 | ||
Acquisition Notes | 5.25% Acquisition Notes, due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | 750,000,000 | 750,000,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 0 | 0 | 6,100,000 | 7,400,000 | ||
Stated percentage | 5.25% | |||||
Acquisition Notes | 5.75% Acquisition Notes, due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | 2,500,000,000 | 2,500,000,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 0 | 0 | 30,800,000 | 33,400,000 | ||
Stated percentage | 5.75% | |||||
Loans Payable | Term Loan A-1 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | 1,532,700,000 | 1,615,700,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 0 | 0 | 3,400,000 | 4,100,000 | ||
Loans Payable | Term Loan B-2 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | 650,000,000 | 650,000,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 0 | $ 0 | 8,600,000 | 9,500,000 | ||
Senior Notes | 5.25% Acquisition Notes, due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 5.25% | 5.25% | ||||
Senior Notes | 5.75% Acquisition Notes, due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 5.75% | 5.75% | ||||
Senior Notes | 5.00% Note, Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 300,000,000 | $ 300,000,000 | 300,000,000 | 300,000,000 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ (5,700,000) | $ (5,700,000) | (6,800,000) | (7,800,000) | ||
Stated percentage | 5.00% | 5.00% | 5.00% | |||
Senior Notes | 3.70% Note, Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000,000,000 | $ 1,000,000,000 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 8,400,000 | $ 8,400,000 | 0 | 0 | ||
Stated percentage | 3.70% | 3.70% | ||||
Senior Notes | 4.00% Note, Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000,000,000 | $ 1,000,000,000 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 7,700,000 | $ 7,700,000 | 0 | 0 | ||
Stated percentage | 4.00% | 4.00% | ||||
Senior Notes | 4.20% Note, Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,250,000,000 | $ 1,250,000,000 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 11,700,000 | $ 11,700,000 | 0 | 0 | ||
Stated percentage | 4.20% | 4.20% | ||||
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 782,000,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | $ 1,250,000,000 | ||||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | $ 0 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 11,400,000 | 11,400,000 | 0 | 0 | ||
Revolving Credit Facility | Line of Credit | Tranche A Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 0 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 0 | 0 | 12,600,000 | 15,200,000 | ||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||||
Revolving Credit Facility | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 782,000,000 | 782,000,000 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 2,200,000 | 2,200,000 | 0 | 0 | ||
Revolving Credit Facility | Senior Floating Note | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 750,000,000 | 750,000,000 | 0 | 0 | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 4,500,000 | $ 4,500,000 | $ 0 | $ 0 | ||
London Interbank Offered Rate (LIBOR) | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.95% | 0.95% | 1.00% | |||
Debt instrument, interest rate, effective percentage | 3.03% | |||||
London Interbank Offered Rate (LIBOR) | Senior Floating Note | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.70% | |||||
Debt instrument, interest rate, effective percentage | 3.04% | |||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.125% | 1.25% | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Loans Payable | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.125% | |||||
Debt instrument, interest rate, effective percentage | 3.20% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Aug. 04, 2018 | May 05, 2018 | Aug. 04, 2018 | Apr. 19, 2018 |
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 101.00% | |||
Accelerated amortizable non-cash deferred financing costs | $ 41,200,000 | |||
Amortization of debt transaction-related costs | 400,000 | |||
Deferred financing costs | $ 36,900,000 | |||
Senior Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 2,030,000,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | 1,250,000,000 | ||
3.70% Note, Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Registered offering, amount | $ 1,000,000,000 | |||
Stated percentage | 3.70% | |||
4.00% Note, Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Registered offering, amount | $ 1,000,000,000 | |||
Stated percentage | 4.00% | |||
4.20% Note, Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Registered offering, amount | $ 1,250,000,000 | |||
Stated percentage | 4.20% | |||
Term Loan B-2 | ||||
Debt Instrument [Line Items] | ||||
Debt, prepayment premium, amount | $ 6,500,000 | |||
Debt, prepayment premium, percent | 1.00% | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 782,000,000 | |||
Line of credit facility, utilized amount | 782,000,000 | |||
Senior Floating Note | ||||
Debt Instrument [Line Items] | ||||
Registered offering, amount | $ 750,000,000 | |||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||
Fixed Rate Note | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||
Acquisition Notes | 5.25% Acquisition Notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 5.25% | |||
Repayments of debt | $ 750,000,000 | |||
Acceleration of amortization of debt issuance costs | 6,100,000 | |||
Redemption premium | $ 107,800,000 | |||
Redemption premium, percentage | 4.313% | |||
Acquisition Notes | 5.75% Acquisition Notes, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 5.75% | |||
Debt instrument, face amount | $ 2,500,000,000 | |||
Senior Notes | 3.70% Note, Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 3.70% | 3.70% | ||
Senior Notes | 4.00% Note, Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 4.00% | 4.00% | ||
Senior Notes | 4.20% Note, Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 4.20% | 4.20% | ||
Senior Notes | 5.25% Acquisition Notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 5.25% | 5.25% | ||
Senior Notes | 5.75% Acquisition Notes, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 5.75% | 5.75% | ||
Senior Notes | 5.00% Note, Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 5.00% | 5.00% | 5.00% | |
Debt instrument, face amount | $ 300,000,000 | |||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.125% | 1.25% | ||
London Interbank Offered Rate (LIBOR) | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.95% | 0.95% | 1.00% | |
London Interbank Offered Rate (LIBOR) | Senior Floating Note | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.70% | |||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Minimum | London Interbank Offered Rate (LIBOR) | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.88% | |||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Maximum | London Interbank Offered Rate (LIBOR) | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.25% |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.90% | 32.00% | 20.30% | 33.90% |
Federal statutory tax rate | 21.00% |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) | 1 Months Ended | |||
Jun. 30, 2018Employee | Aug. 31, 2017Employee | Jul. 31, 2017Employee | Apr. 30, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Loss contingency, number of plaintiffs | Employee | 43 | 43 | 2 | |
Minimum | Fair Credit Reporting Act Violations | ||||
Loss Contingencies [Line Items] | ||||
Damages sought, per violation | $ 100 | |||
Maximum | Fair Credit Reporting Act Violations | ||||
Loss Contingencies [Line Items] | ||||
Damages sought, per violation | $ 1,000 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value Measurements (Details) - USD ($) $ in Millions | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investments | $ 0 | $ 0 | $ 4 | |
Long-term debt | 5,082 | 5,732.7 | 5,822.7 | |
Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investments | 0 | 0 | 4 | |
Deferred compensation plan assets | 22.5 | 20.7 | 19.4 | |
Secured Senior Notes and Acquisition Notes | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, fair value | 4,288.7 | 3,684.6 | 3,745.7 | |
Long-term debt | 4,273.4 | 3,519.9 | 3,517 | |
Long term debt - term loans | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, fair value | 774.2 | 2,187.6 | 2,275.5 | |
Long-term debt | 779.8 | 2,170.7 | 2,252.1 | |
5.00% Note, Due 2021 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt | $ 300 | $ 300 | $ 300 | |
Stated percentage | 5.00% | 5.00% | ||
5.25% Acquisition Notes, due 2020 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated percentage | 5.25% | |||
5.75% Acquisition Notes, due 2023 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated percentage | 5.75% |
NET INCOME PER SHARE Schedule o
NET INCOME PER SHARE Schedule of Earnings per share, basic and diluted (table details) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 273.9 | $ 233.8 | $ 434.4 | $ 434.3 |
Weighted Average Number of Shares Outstanding (shares) | 237.9 | 236.7 | 237.7 | 236.5 |
Basic net income per share (usd per share) | $ 1.15 | $ 0.99 | $ 1.83 | $ 1.84 |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0.7 | 0.7 | 0.8 | 0.9 |
Weighted average number of shares and dilutive potential shares outstanding (shares) | 238.6 | 237.4 | 238.5 | 237.4 |
Diluted net income per share (usd per share) | $ 1.15 | $ 0.98 | $ 1.82 | $ 1.83 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 47.6 | $ 40.1 |
Compensation expense, period | 3 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, beginning (in shares) | 1,525,252 | |
Number of shares, granted (in shares) | 783,366 | |
Number of shares, vested (in shares) | (628,406) | |
Number of shares, forfeited (in shares) | (37,368) | |
Number of shares, end (in shares) | 1,642,844 | |
Number of shares, beginning (USD per share) | $ 79.37 | |
Number of shares, granted (USD per share) | 94.87 | |
Number of shares, vested (USD per share) | 79.78 | |
Number of shares, forfeited (USD per share) | 83.27 | |
Number of shares, ending (USD per share) | $ 86.53 |
SEGMENTS (Details)
SEGMENTS (Details) | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2018USD ($) | Jul. 29, 2017USD ($) | Aug. 04, 2018USD ($) | Jul. 29, 2017USD ($) | Feb. 03, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 5,525,600,000 | $ 5,281,200,000 | $ 11,079,300,000 | $ 10,568,300,000 | |
Gross profit | 1,663,900,000 | 1,627,800,000 | 3,363,500,000 | 3,254,900,000 | |
Depreciation and amortization expense | 152,600,000 | 151,400,000 | 304,100,000 | 305,300,000 | |
Operating income (loss) | 382,500,000 | 419,500,000 | 820,100,000 | 808,300,000 | |
Capital expenditures | 213,400,000 | 161,400,000 | 394,300,000 | 271,700,000 | |
Assets | 16,103,600,000 | 15,532,300,000 | 16,103,600,000 | 15,532,300,000 | $ 16,332,800,000 |
Goodwill | 5,023,900,000 | 5,025,200,000 | $ 5,023,900,000 | 5,025,200,000 | 5,025,200,000 |
Number of retail discount stores | 15,000 | ||||
Number of states stores operating in | 48 | ||||
Number Of Canadian provinces | 5 | ||||
Number of reportable segments | 2 | ||||
Dollar Tree | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,768,800,000 | 2,586,900,000 | $ 5,553,200,000 | 5,158,600,000 | |
Gross profit | 955,300,000 | 895,800,000 | 1,916,100,000 | 1,792,500,000 | |
Depreciation and amortization expense | 65,800,000 | 62,700,000 | 129,700,000 | 124,200,000 | |
Operating income (loss) | 297,700,000 | 289,100,000 | 627,900,000 | 604,500,000 | |
Capital expenditures | 149,900,000 | 87,700,000 | 267,100,000 | 153,400,000 | |
Assets | 4,054,400,000 | 3,555,900,000 | 4,054,400,000 | 3,555,900,000 | 4,113,400,000 |
Goodwill | 356,500,000 | 347,100,000 | 356,500,000 | 347,100,000 | 347,100,000 |
Price Point | $ 1 | ||||
Number of distribution centers | 12 | ||||
Goodwill, transfers in (out) | $ 10,700,000 | ||||
Family Dollar | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,756,800,000 | 2,694,300,000 | 5,526,100,000 | 5,409,700,000 | |
Gross profit | 708,600,000 | 732,000,000 | 1,447,400,000 | 1,462,400,000 | |
Depreciation and amortization expense | 86,800,000 | 88,700,000 | 174,400,000 | 181,100,000 | |
Operating income (loss) | 84,800,000 | 130,400,000 | 192,200,000 | 203,800,000 | |
Capital expenditures | 63,500,000 | 73,700,000 | 127,200,000 | 118,300,000 | |
Assets | 12,049,200,000 | 11,976,400,000 | 12,049,200,000 | 11,976,400,000 | 12,219,400,000 |
Goodwill | $ 4,667,400,000 | $ 4,678,100,000 | $ 4,667,400,000 | $ 4,678,100,000 | $ 4,678,100,000 |
Number of distribution centers | 11 | ||||
Goodwill, transfers in (out) | $ (10,700,000) | ||||
CANADA | Dollar Tree | |||||
Segment Reporting Information [Line Items] | |||||
Number of distribution centers | 2 |