Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 10, 2021 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 0-25464 | ||
Entity Registrant Name | DOLLAR TREE, INC. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 26-2018846 | ||
Entity Address, Address Line One | 500 Volvo Parkway | ||
Entity Address, City or Town | Chesapeake, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23320 | ||
City Area Code | 757 | ||
Local Phone Number | 321-5000 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | DLTR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21,864,456,043 | ||
Entity Common Stock, Shares Outstanding | 233,420,925 | ||
Documents Incorporated by Reference | The information called for in Items 10, 11, 12, 13 and 14 of Part III, to the extent not set forth herein, is incorporated by reference to the definitive Proxy Statement for the Annual Meeting of Stockholders to be held June 10, 2021, which will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 30, 2021. | ||
Entity Central Index Key | 0000935703 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-30 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 25,509.3 | $ 23,610.8 | $ 22,823.3 |
Cost of sales | 17,721 | 16,570.1 | 15,875.8 |
Gross profit | 7,788.3 | 7,040.7 | 6,947.5 |
Selling, general and administrative expenses, excluding Goodwill impairment | 5,900.4 | 5,465.5 | 5,160 |
Goodwill impairment | 0 | 313 | 2,727 |
Selling, general and administrative expenses | 5,900.4 | 5,778.5 | 7,887 |
Operating income (loss) | 1,887.9 | 1,262.2 | (939.5) |
Interest expense, net | 147.3 | 162.1 | 370 |
Other expense (income), net | 0.8 | 1.4 | (0.5) |
Income (loss) before income taxes | 1,739.8 | 1,098.7 | (1,309) |
Provision for income taxes | 397.9 | 271.7 | 281.8 |
Net income (loss) | $ 1,341.9 | $ 827 | $ (1,590.8) |
Net income per share: | |||
Basic net income (loss) per share (usd per share) | $ 5.68 | $ 3.49 | $ (6.69) |
Diluted net income (loss) per share (usd per share) | $ 5.65 | $ 3.47 | $ (6.69) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,341.9 | $ 827 | $ (1,590.8) |
Foreign currency translation adjustments | 4.6 | (1.5) | (6) |
Total comprehensive income (loss) | $ 1,346.5 | $ 825.5 | $ (1,596.8) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,416.7 | $ 539.2 |
Merchandise inventories | 3,427 | 3,522 |
Other current assets | 207.1 | 208.2 |
Total current assets | 5,050.8 | 4,269.4 |
Property, plant and equipment, net of accumulated depreciation of $4,765.0 and $4,194.1, respectively | 4,116.3 | 3,881.8 |
Restricted cash | 46.9 | 46.8 |
Operating lease right-of-use assets | 6,324.1 | 6,225 |
Goodwill | 1,984.4 | 1,983.3 |
Trade name intangible asset | 3,100 | 3,100 |
Deferred tax asset | 23.2 | 24.4 |
Other assets | 50.3 | 43.9 |
Total assets | 20,696 | 19,574.6 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 250 |
Current portion of operating lease liabilities | 1,348.2 | 1,279.3 |
Accounts payable | 1,480.5 | 1,336.5 |
Income taxes payable | 86.3 | 62.7 |
Other current liabilities | 815.3 | 618 |
Total current liabilities | 3,730.3 | 3,546.5 |
Long-term debt, net, excluding current portion | 3,226.2 | 3,522.2 |
Operating lease liabilities, long-term | 5,065.5 | 4,979.5 |
Deferred income taxes, net | 1,013.5 | 984.7 |
Income taxes payable, long-term | 22.6 | 28.9 |
Other liabilities | 352.6 | 258 |
Total liabilities | 13,410.7 | 13,319.8 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, par value $0.01; 600,000,000 shares authorized, 233,383,199 and 236,726,563 shares issued and outstanding at January 30, 2021 and February 1, 2020, respectively | 2.3 | 2.4 |
Additional paid-in capital | 2,138.5 | 2,454.4 |
Accumulated other comprehensive loss | (35.2) | (39.8) |
Retained earnings | 5,179.7 | 3,837.8 |
Total shareholders’ equity | 7,285.3 | 6,254.8 |
Total liabilities and shareholders’ equity | $ 20,696 | $ 19,574.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, property, plant and equipment | $ 4,765 | $ 4,194.1 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (usd per share) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 233,383,199 | 236,726,563 |
Common stock, shares outstanding (in shares) | 233,383,199 | 236,726,563 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Balance at Beginning of Year (in shares) at Feb. 03, 2018 | 237,300,000 | ||||||
Balance at Beginning of Year at Feb. 03, 2018 | $ 7,182.3 | $ 2.4 | $ 2,545.3 | $ (32.3) | $ 4,666.9 | ||
Statement of Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (1,590.8) | (1,590.8) | |||||
Total other comprehensive income (loss) | (6) | (6) | |||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 200,000 | ||||||
Issuance of stock under Employee Stock Purchase Plan | 10 | 10 | |||||
Exercise of stock options (in shares) | 100,000 | ||||||
Exercise of stock options | 7.5 | 7.5 | |||||
Stock-based compensation, net (in shares) | 500,000 | ||||||
Stock-based compensation, net | 39.9 | 39.9 | |||||
Balance at End of Year (in shares) at Feb. 02, 2019 | 238,100,000 | ||||||
Balance at End of Year at Feb. 02, 2019 | 5,642.9 | $ (65.3) | $ 2.4 | 2,602.7 | (38.3) | 3,076.1 | $ (65.3) |
Statement of Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 827 | 827 | |||||
Total other comprehensive income (loss) | (1.5) | (1.5) | |||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||||
Issuance of stock under Employee Stock Purchase Plan | 9.4 | 9.4 | |||||
Exercise of stock options (in shares) | 0 | ||||||
Exercise of stock options | 5.8 | 5.8 | |||||
Stock-based compensation, net (in shares) | 400,000 | ||||||
Stock-based compensation, net | 36.5 | 36.5 | |||||
Repurchase of stock (in shares) | (1,900,000) | ||||||
Repurchase of stock | (200) | (200) | |||||
Balance at End of Year (in shares) at Feb. 01, 2020 | 236,700,000 | ||||||
Balance at End of Year at Feb. 01, 2020 | 6,254.8 | $ 2.4 | 2,454.4 | (39.8) | 3,837.8 | ||
Statement of Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,341.9 | 1,341.9 | |||||
Total other comprehensive income (loss) | 4.6 | 4.6 | |||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 200,000 | ||||||
Issuance of stock under Employee Stock Purchase Plan | $ 10 | 10 | |||||
Exercise of stock options (in shares) | 94,890 | 100,000 | |||||
Exercise of stock options | $ 7 | 7 | |||||
Stock-based compensation, net (in shares) | 400,000 | ||||||
Stock-based compensation, net | 67 | 67 | |||||
Repurchase of stock (in shares) | (4,000,000) | ||||||
Repurchase of stock | (400) | $ (0.1) | (399.9) | ||||
Balance at End of Year (in shares) at Jan. 30, 2021 | 233,400,000 | ||||||
Balance at End of Year at Jan. 30, 2021 | $ 7,285.3 | $ 2.3 | $ 2,138.5 | $ (35.2) | $ 5,179.7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,341.9 | $ 827 | $ (1,590.8) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Goodwill impairment | 0 | 313 | 2,727 |
Depreciation and amortization | 686.6 | 645.4 | 621.1 |
Provision for deferred income taxes | 30.7 | 9.1 | (12.1) |
Stock-based compensation expense | 83.9 | 61.4 | 63.1 |
Amortization of debt discount and debt-issuance costs | 4 | 6.9 | 57.2 |
Other non-cash adjustments to net income (loss) | 19 | 24.5 | 7.8 |
Loss on debt extinguishment | 0 | 0 | 114.7 |
Changes in operating assets and liabilities: | |||
Merchandise inventories | 97.1 | 13.6 | (369.2) |
Other current assets | 1.7 | (8.4) | (21.1) |
Other assets | (7) | 8.2 | 0.9 |
Accounts payable | 142.6 | (79.8) | 242.6 |
Income taxes payable | 23.6 | 2.7 | 28.5 |
Other current liabilities | 203.4 | 24.3 | (105.4) |
Other liabilities | 88.2 | (14.6) | 1.7 |
Operating lease right-of-use assets and liabilities, net | 0.6 | 36.5 | 0 |
Net cash provided by operating activities | 2,716.3 | 1,869.8 | 1,766 |
Cash flows from investing activities: | |||
Capital expenditures | (898.8) | (1,034.8) | (817.1) |
Proceeds from governmental grant | 0 | 16.5 | 0 |
Proceeds from (payments for) fixed asset disposition | 9.1 | (1.9) | 0.4 |
Net cash used in investing activities | (889.7) | (1,020.2) | (816.7) |
Cash flows from financing activities: | |||
Proceeds from long-term debt, net of discount | 0 | 0 | 4,775.8 |
Principal payments for long-term debt | (550) | (500) | (6,214.7) |
Debt-issuance and debt extinguishment costs | 0 | 0 | (155.3) |
Proceeds from revolving credit facility | 750 | 0 | 50 |
Repayments of revolving credit facility | (750) | 0 | (50) |
Proceeds from stock issued pursuant to stock-based compensation plans | 17 | 15.2 | 17.5 |
Cash paid for taxes on exercises/vesting of stock-based compensation | (16.9) | (25) | (23.2) |
Payments for repurchase of stock | (400) | (200) | 0 |
Net cash used in financing activities | (949.9) | (709.8) | (1,599.9) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.9 | (0.5) | (0.5) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 877.6 | 139.3 | (651.1) |
Cash, cash equivalents and restricted cash at beginning of year | 586 | 446.7 | 1,097.8 |
Cash, cash equivalents and restricted cash at end of year | 1,463.6 | 586 | 446.7 |
Cash paid for: | |||
Interest, net of amounts capitalized | 152.9 | 170.2 | 383.4 |
Income taxes | 357.7 | 266.8 | 277.5 |
Non-cash transactions: | |||
Accrued capital expenditures | $ 44.9 | $ 51.1 | $ 43.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Unless otherwise stated, references to “we,” “us,” and “our” in this annual report on Form 10-K refer to Dollar Tree, Inc. and its direct and indirect subsidiaries on a consolidated basis. We are a leading operator of discount retail stores in the United States and Canada. Below are those accounting policies that we consider to be significant. Principles of Consolidation The consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segment Information At January 30, 2021, we operate more than 15,600 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our 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 predominantly at the fixed price point of $1.00. The Dollar Tree segment includes our operations under the “Dollar Tree” and “Dollar Tree Canada” brands, 15 distribution centers in the United States and two distribution centers in Canada. 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 our operations under the “Family Dollar” brand and 11 distribution centers. Refer to Note 12 for additional information regarding our operating segments. Foreign Currency The functional currencies of certain of our international subsidiaries are the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions, which are included in “Other expense (income), net” have not been significant. Fiscal Year Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to January 31. References to “2020” or “fiscal 2020,” “2019” or “fiscal 2019,” and “2018” or “fiscal 2018” relate to the 52-week fiscal years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents at January 30, 2021 and February 1, 2020 includes $1,135.0 million and $287.6 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. We consider all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions process within three business days, and therefore are classified as cash and cash equivalents. Merchandise Inventories Merchandise inventories at our distribution centers are stated at the lower of cost or net realizable value, determined on a weighted-average cost basis. Cost is assigned to store inventories using the retail inventory method on a weighted-average basis. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are computed by applying a calculated cost-to-retail ratio to the retail value of inventories. Costs directly associated with warehousing and distribution are capitalized as merchandise inventories. Total warehousing and distribution costs capitalized into inventory amounted to $172.7 million and $169.7 million at January 30, 2021 and February 1, 2020, respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Leasehold improvements are amortized over the shorter of the estimated useful lives of the respective assets or the related lease terms. Amortization is included in “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. Costs incurred related to software developed for internal use are capitalized and amortized, generally over three years. Capitalized Interest We capitalize interest on borrowed funds during the construction of certain property and equipment. We capitalized $3.2 million, $2.4 million and $4.2 million of interest costs in the years ended January 30, 2021, February 1, 2020 and February 2, 2019, respectively. Insurance Reserves and Restricted Cash We utilize a combination of insurance and self-insurance programs, including a wholly-owned captive insurance entity, to provide for the potential liabilities for certain risks, including workers’ compensation, general liability and automobile liability. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering claims experience, exposure and severity factors and other actuarial assumptions. Dollar Tree Insurance, Inc., a South Carolina-based wholly-owned captive insurance subsidiary of ours, charges the operating subsidiary companies premiums to insure the retained workers’ compensation, general liability and automobile liability exposures. Pursuant to South Carolina insurance regulations, Dollar Tree Insurance, Inc. maintains certain levels of cash and cash equivalents related to its self-insured exposures. We also maintain certain cash balances related to our insurance programs, which are held in trust and restricted as to withdrawal or use. Lease Accounting In the first quarter of fiscal 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (Topic 842)” and subsequent amendments, using the optional effective date transition method provided by accounting pronouncement, ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” and recorded a cumulative effect adjustment to beginning retained earnings. Our reporting for the fiscal 2018 comparative period presented in the consolidated financial statements continues to be in accordance with Accounting Standards Codification (“ASC”) Topic 840, “ Leases. ” Adoption of the standard resulted in the recognition of Operating lease right-of-use assets and Operating lease liabilities of $6.2 billion and $6.1 billion, respectively, and a reduction to Retained earnings of $65.3 million, net of tax, as of February 3, 2019. For fiscal 2019, the adoption of the standard did not have a material impact on our consolidated statements of operations or consolidated statements of cash flows. Our lease portfolio primarily consists of leases for our retail store locations and we also lease vehicles and trailers, as well as distribution center space and equipment. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. We recognize expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of future lease payments. Inputs to the calculation of our incremental borrowing rate include the valuations and yields of our outstanding senior notes and their credit spreads over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification. Most leases include one or more options to renew and the exercise of renewal options is at our sole discretion. We do not include renewal options in our determination of the lease term unless the renewals are deemed to be reasonably certain. Operating lease expense for lease payments not yet paid is recognized on a straight-line basis over the lease term. The operating lease right-of-use asset is reduced by lease incentives, which has the effect of lowering the operating lease expense. Operating lease right-of-use assets are periodically reviewed for impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. We have real estate leases that typically include payments related to non-lease components, such as common area maintenance, as well as payments for real estate taxes and insurance which are not considered components of the lease. These payments are generally variable and based on actual costs incurred by the lessor. These costs are expensed as incurred as variable lease costs and excluded for the purpose of calculating the right-of-use asset and lease liability. A smaller number of real estate leases contain fixed payments for common area maintenance, real estate taxes and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use asset and lease liability. In addition, certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. These payments are expensed as incurred as variable lease costs. Our lease agreements do not contain any material residual value guarantees or material restrictive financial covenants. Purchased leases with terms which were either favorable or unfavorable as compared to prevailing market rates at the date of acquisition are amortized over the remaining lease terms, including, in some cases, an assumed renewal. Amortization expense, net of $48.1 million, $52.9 million and $65.4 million was recognized in “Selling, general and administrative expenses” in 2020, 2019 and 2018, respectively, related to these lease rights. Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of We review our long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets based on discounted cash flows or other readily available evidence of fair value, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In fiscal 2020, 2019 and 2018, we recorded charges of $4.6 million, $9.1 million and $13.0 million, respectively, to write down certain assets, including $3.8 million and $8.5 million in fiscal 2020 and fiscal 2019, respectively, to write down Operating lease right-of-use assets. These charges are recorded as a component of “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. Goodwill and Nonamortizing Intangible Assets Goodwill and nonamortizing intangible assets, including the Family Dollar trade name, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and nonamortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We perform a qualitative assessment to determine whether it is more likely than not that the Family Dollar trade name is impaired. If we determine that it is more likely than not that an impairment exists, we evaluate the Family Dollar trade name for impairment by comparing its fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. Subsequent to the evaluation of the Family Dollar trade name for impairment, we perform a goodwill impairment evaluation. In the event that a qualitative assessment of the fair value of a reporting unit indicates it is more likely than not that the fair value is less than the carrying amount, we then estimate the fair value of the reporting unit using a combination of a market multiple method and a discounted cash flow method. We recognize goodwill impairment for the amount by which the reporting unit’s carrying amount exceeds its estimated fair value, not to exceed the total carrying amount of goodwill allocated to the reporting unit. Our reporting units are determined in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” We perform our annual impairment testing of goodwill and nonamortizing intangible assets during the fourth quarter of each year. Refer to Note 3 for additional information on the results of the impairment tests. Revenue Recognition We recognize sales revenue, net of estimated returns and sales tax, at the time the customer tenders payment for and takes control of the merchandise. Taxes Collected We report taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions (i.e., sales tax) on a net (excluded from revenue) basis. Cost of Sales We include the cost of merchandise, warehousing and distribution costs, and certain occupancy costs in cost of sales. Vendor Allowances We receive vendor support in the form of cash payments or allowances through a variety of reimbursements such as purchase discounts, cooperative advertising, markdowns, scandowns and volume rebates. We have agreements with vendors setting forth the specific conditions for each allowance or payment. We either recognize the allowance as a reduction of current costs or defer the payment over the period the related merchandise is sold. If the payment is a reimbursement for costs incurred, it is offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. Pre-Opening Costs We expense pre-opening costs for new, expanded, relocated and re-bannered stores and for distribution centers, as incurred. Advertising Costs We expense advertising costs as they are incurred and they are included in “Selling, general and administrative expenses” within the accompanying consolidated statements of operations. Advertising costs, net of co-op recoveries from vendors, were $80.8 million, $102.9 million and $99.9 million in fiscal 2020, 2019 and 2018, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. We recognize a financial statement benefit for a tax position if we determine that it is more likely than not that the position will be sustained upon examination. We include interest and penalties in the provision for income tax expense and income taxes payable. We do not provide for any penalties associated with tax contingencies unless they are considered probable of assessment. Stock-Based Compensation We recognize expense for all share-based payments to employees and non-employee directors based on their fair values. Total stock-based compensation expense for 2020, 2019 and 2018 was $83.9 million, $61.4 million and $63.3 million, respectively. We recognize expense related to the fair value of restricted stock units (RSUs) and stock options over the requisite service period 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 closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. We account for forfeitures when they occur. Net Income (Loss) Per Share Basic net income (loss) per share has been computed by dividing net income (loss) by the weighted average number of shares outstanding. Diluted net income (loss) per share reflects the potential dilution that could occur assuming the inclusion of dilutive potential shares and has been computed by dividing net income (loss) by the weighted average number of shares and dilutive potential shares outstanding. Dilutive potential shares include all outstanding stock options and unvested RSUs after applying the treasury stock method. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jan. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Property, Plant and Equipment, Net Property, plant and equipment, net, as of January 30, 2021 and February 1, 2020 consists of the following: January 30, February 1, (in millions) 2021 2020 Land $ 238.7 $ 233.5 Buildings 1,524.0 1,395.5 Leasehold improvements 2,631.7 2,335.1 Furniture, fixtures and equipment 4,229.4 3,813.2 Construction in progress 257.5 298.6 Total property, plant and equipment 8,881.3 8,075.9 Less: accumulated depreciation 4,765.0 4,194.1 Total property, plant and equipment, net $ 4,116.3 $ 3,881.8 Depreciation expense was $631.1 million, $581.9 million, and $555.7 million for the years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. Other Current Liabilities Other current liabilities as of January 30, 2021 and February 1, 2020 consist of the following: January 30, February 1, (in millions) 2021 2020 Taxes (other than income taxes) $ 305.0 $ 183.3 Compensation and benefits 162.8 102.8 Insurance 115.4 112.0 Accrued construction costs 44.9 51.1 Accrued utilities 27.8 22.0 Other 159.4 146.8 Total other current liabilities $ 815.3 $ 618.0 |
Goodwill and Nonamortizing Inta
Goodwill and Nonamortizing Intangible Assets | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Nonamortizing Intangible Assets | Goodwill and Nonamortizing Intangible Assets Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the years ended January 30, 2021 and February 1, 2020 are as follows: (in millions) Dollar Tree Family Dollar Total Balance at February 2, 2019 $ 376.5 $ 1,920.1 $ 2,296.6 Foreign currency translation adjustments (0.3) — (0.3) Goodwill reassignment for re-bannered stores 47.6 (47.6) — Goodwill impairment — (313.0) (313.0) Balance at February 1, 2020 423.8 1,559.5 1,983.3 Foreign currency translation adjustments 1.1 — 1.1 Balance at January 30, 2021 $ 424.9 $ 1,559.5 $ 1,984.4 Goodwill is reassigned between segments when previously acquired stores are re-bannered between segments. The goodwill related to previously acquired re-bannered stores in 2020 was not material. In 2019, we reassigned $47.6 million of goodwill from Family Dollar to Dollar Tree as a result of re-bannering. Re-bannered stores are treated as new stores. Goodwill and other indefinite-lived intangible assets must be evaluated for impairment annually and may also be tested on an interim basis upon the occurrence of a triggering event or a change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual goodwill impairment evaluation in 2020 did not result in impairment. The 2019 and 2018 goodwill impairment evaluations indicated that the fair value of the Family Dollar reporting unit was lower than its carrying value resulting in $313.0 million and $2.73 billion non-cash pre-tax and after-tax goodwill impairment charges in the fourth quarters of fiscal 2019 and 2018, respectively, which were recorded as a component of “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. Our annual impairment evaluation of the Family Dollar trade name did not result in impairment charges during fiscal 2020, 2019 or 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Current taxes: Federal $ 279.5 $ 210.1 $ 245.6 State 87.4 52.5 47.8 Foreign 0.2 0.1 0.4 Total current taxes 367.1 262.7 293.8 Deferred taxes: Federal 32.6 39.2 0.3 State (3.8) (5.6) (12.3) Foreign 2.0 (24.6) — Total deferred taxes 30.8 9.0 (12.0) Provision for income taxes $ 397.9 $ 271.7 $ 281.8 A reconciliation of the statutory U.S. federal income tax (benefit) rate and the effective tax rate follows: Year Ended January 30, 2021 February 1, 2020 February 2, 2019 Statutory U.S. federal income tax (benefit) rate 21.0 % 21.0 % (21.0) % Effect of: State and local income taxes, net of federal income tax benefit 3.2 3.7 3.0 Non-deductible executive compensation 0.4 — — Incremental tax expense (benefit) of exercises/vesting of equity-based 0.2 (0.4) 0.1 State tax reserve release (0.5) — — Work Opportunity Tax Credit (1.6) (2.7) (2.0) Goodwill impairment — 6.0 43.7 Deferred tax rate change — 0.1 — Change in valuation allowance — (2.2) 0.3 Tax Cuts and Jobs Act — — (1.3) Other, net 0.2 (0.8) (1.3) Effective tax rate 22.9 % 24.7 % 21.5 % Goodwill Impairment In the fourth quarters of 2019 and 2018, we recorded goodwill impairment charges of $313.0 million and $2.73 billion, respectively, related to the Family Dollar goodwill, as further discussed in Note 3 . As the purchase of Family Dollar was a stock acquisition, carryover basis applied for tax purposes. The impairment charges are not deductible for federal or state tax purposes and therefore there is no tax benefit related to the impairments. Foreign Taxes United States income taxes have not been provided on accumulated but undistributed earnings of our foreign subsidiaries as we intend to permanently reinvest earnings. We do not consider the tax on the mandatory deemed repatriation of undistributed foreign earnings and profits to be material. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred tax assets (liabilities) follow: (in millions) January 30, February 1, Deferred tax assets: Operating lease liabilities $ 1,658.4 $ 1,621.8 Accrued expenses 72.9 26.0 Net operating losses, interest expense and credit carryforwards 95.5 102.2 Accrued compensation expense 47.2 31.6 State tax election 17.4 19.3 Other 3.2 2.4 Total deferred tax assets 1,894.6 1,803.3 Valuation allowance (16.8) (18.5) Deferred tax assets, net 1,877.8 1,784.8 Deferred tax liabilities: Property and equipment (410.5) (304.3) Operating lease right-of-use assets (1,587.2) (1,550.1) Other intangibles (840.4) (852.2) Inventory (4.8) (14.4) Prepaids (25.2) (24.1) Total deferred tax liabilities (2,868.1) (2,745.1) Deferred income taxes, net $ (990.3) $ (960.3) At January 30, 2021, we had certain state tax credit carryforwards, net operating loss carryforwards and capital loss carryforwards totaling $95.5 million. Some of these carryforwards will expire, if not utilized, beginning in 2021 through 2040. A valuation allowance of $16.8 million, net of federal tax benefits, has been provided principally for certain state credit carryforwards and net operating loss carryforwards. Since February 1, 2020, the valuation allowance has been decreased to reflect capital loss carryforwards, state credits and net operating losses expected to be utilized over the carryforward period. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred taxes will not be realized. Based upon the availability of carrybacks of future deductible amounts and our projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not the remaining existing deductible temporary differences will reverse during periods in which carrybacks are available or in which we generate net taxable income. Uncertain Tax Positions We are participating in the IRS Compliance Assurance Program (“CAP”) for fiscal 2020 and we have been accepted into the program for fiscal 2021. This program accelerates the examination of key transactions with the goal of resolving any issues before the tax return is filed. Our federal tax returns have been examined and all issues have been settled through the fiscal 2019 tax year. Several states completed their examinations during fiscal 2020. In general, fiscal 2017 and forward are within the statute of limitations for state tax purposes. The statute of limitations is still open prior to fiscal 2017 for some states. For fiscal 2020, we are participating in the CAP under the IRS’s bridge year program and as a result, the IRS will not be completing an audit on the 2020 tax return. The balance for unrecognized tax benefits at January 30, 2021 was $22.6 million. The total amount of unrecognized tax benefits at January 30, 2021 that, if recognized, would affect the effective tax rate was $17.9 million (net of the federal tax benefit). The following is a reconciliation of our total gross unrecognized tax benefits: (in millions) January 30, 2021 February 1, 2020 Beginning Balance $ 28.9 $ 35.4 Additions, based on tax positions related to current year 1.2 0.9 Additions for tax positions of prior years 3.4 4.8 Lapses in statutes of limitation (10.9) (12.2) Ending balance $ 22.6 $ 28.9 We believe it is reasonably possible that $6.0 million to $7.0 million of the reserve for uncertain tax positions may be reduced during the next 12 months principally as a result of the effective settlement of outstanding issues. It is also possible that state tax reserves will be reduced for audit settlements and statute expirations within the next 12 months. At this point it is not possible to estimate a range associated with the resolution of these audits. We do not expect any change to have a material impact to our consolidated financial statements. As of January 30, 2021, we have recorded a liability for potential interest and penalties of $2.6 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations We have commitments totaling $189.8 million related to agreements for software licenses and support, telecommunication services and store technology assets and maintenance for its stores. Letters of Credit We have $356.5 million in Letter of Credit Reimbursement and Security Agreements with various financial institutions, under which $209.6 million was committed to these letters of credit issued for routine purchases of imported merchandise at January 30, 2021. At January 30, 2021, we also have $98.7 million in standby letters of credit that serve as collateral for our large-deductible insurance programs and expire in fiscal 2021. Surety Bonds We have issued various surety bonds that primarily serve as collateral for utility payments at our stores and self-insured insurance programs. These bonds total $96.5 million and are committed through various dates through fiscal 2024. Contingencies We are defendants in legal proceedings including the class, collective, representative and large cases described below as well as individual claims in arbitration. We will vigorously defend ourselves in these matters. We do not believe that any of these matters will, individually or in the aggregate, have a material effect on our business or financial condition. We cannot give assurance, however, that one or more of these matters will not have a material effect on our results of operations for the quarter or year in which they are resolved. We assess our legal proceedings monthly and reserves are established if a loss is probable and the amount of such loss can be reasonably estimated. For matters that have settled, we reserve the estimated settlement amount even if the settlement has not been approved by the court. Many, if not substantially all, of our legal proceedings 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 we have determined that a loss is reasonably possible but not probable, we are 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. Our 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 us 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 The Food and Drug Administration (“FDA”) has alleged that we improperly sold certain topically applied, over the counter (“OTC”) products manufactured by certain Chinese factories that were on an import “alert” restriction issued by the FDA. We responded to the FDA by proposing enhanced procedures and processes for any OTC products we import from China. In December 2020, a former store manager brought a class action in California state court alleging we failed to reimburse employees for business expenses and in so failing, engaged in unfair competition. Actual or threatened California state court lawsuits have been filed against Dollar Tree and Family Dollar for similar employment-related claims brought under Private Attorney General Act (“PAGA”). These cases may allege violations such as failure to provide employees with compliant rest and meal breaks, suitable seating and overtime pay, reimburse business expenses, pay minimum wages for all time worked, provide accurate wage statements, and timely pay wages as well as other potential labor code violations. Lawsuits have been filed against Dollar Tree, Family Dollar and our vendors alleging that personal talc powder products caused cancer. We do not believe the products we sold caused the illnesses. We believe these lawsuits are insured and we are being indemnified by our third party vendors. Dollar Tree Resolved 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. We have reached an agreement and received final approval from the court. In August 2018, a former employee brought suit in California state court as a class action and as a PAGA representative suit alleging we failed to provide all non-exempt California store employees with compliant rest and meal breaks, accrued vacation, accurate wage statements and final pay upon termination of employment. We have reached an agreement to settle the matter and have received the court’s approval. In June 2020, a current employee filed a class action in California state court on behalf of herself and other non-exempt store employees in California alleging we failed to provide an effective illness and injury prevention program in our California stores and failed to provide personal protective equipment to our store employees thereby engaging in unfair business practices and creating a public nuisance. The court granted our request to compel arbitration which resolves the class action matter. The consumer dismissed the January 2020 class action that was filed against us in New York relating to Almond Milk sold by us. Family Dollar Active Matters In August 2020, a consumer class action was filed against us in New York alleging Smoked Almonds sold by us are mislabeled because the almonds do not go through a smoking process but rather acquire their smoky taste through the use of smoked flavoring. The legal claims include New York consumer protection laws, negligent misrepresentations, breach of warranties, fraud and unjust enrichment. In late 2019 and early 2020, personal injury and consumer class actions were filed alleging that we sold Zantac containing N- Nitrosodimethylamine, which is classified by the FDA as a probable carcinogen. Although all the suits were dismissed in December, 2020, on February 8, 2021, an Amended Master Personal Injury Complaint was filed against us and other retailers, manufacturers, and distributors alleging unjust enrichment, physical harm, loss of consortium, and death. In January 2021, a consumer class action was filed against us in Georgia for breach of warranty based on the allegation that the coffee we sold was mislabeled because the canister did not contain enough coffee to make the number of cups of coffee stated on the label. Please see the description above for talc and PAGA lawsuits against Family Dollar. Family Dollar Resolved Matters |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at January 30, 2021 and February 1, 2020 consists of the following: January 30, 2021 February 1, 2020 (in millions) Principal Unamortized Debt Discount and Issuance Costs Principal Unamortized Debt Discount, Premium and Issuance Costs 5.00% Senior Notes, due 2021 $ — $ — $ 300.0 $ (2.4) $1.25 billion Revolving Credit Facility, interest payable at LIBOR, reset periodically, plus 1.125%, which was 1.24% at January 30, 2021 — 5.3 — 7.7 Senior Floating Rate Notes, due 2020 — — 250.0 0.2 3.70% Senior Notes, due 2023 1,000.0 4.2 1,000.0 5.9 4.00% Senior Notes, due 2025 1,000.0 5.1 1,000.0 6.2 4.20% Senior Notes, due 2028 1,250.0 9.2 1,250.0 10.2 Total $ 3,250.0 $ 23.8 $ 3,800.0 $ 27.8 Maturities of long-term debt are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter $ — $ — $ 1,000.0 $ — $ 1,000.0 $ 1,250.0 Senior Credit Facilities On April 19, 2018, we 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”), which was scheduled to mature on April 19, 2020. 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) our credit ratings and (ii) our leverage ratio. We borrowed the entire $782.0 million Term Loan Facility on April 19, 2018 and repaid the entire amount in January 2019. The Revolving Credit Facility matures on April 19, 2023, subject to extensions permitted under the Credit Agreement. The loans under the Revolving Credit Facility bore interest at an initial interest rate of LIBOR, reset periodically, plus 1.25%, subject to adjustment based on (i) our credit ratings and (ii) our 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%. At January 30, 2021, the Revolving Credit Facility bore interest at LIBOR plus 1.125%. We pay 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. 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 our ability to incur subsidiary indebtedness, incur liens, sell all or substantially all of our (including our 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. In the first quarter of fiscal 2020, we preemptively drew $750.0 million on our Revolving Credit Facility to reduce our exposure to potential short-term liquidity risk in the banking system as a result of the COVID-19 pandemic, all of which was repaid by the end of the third quarter of fiscal 2020. Senior Notes On April 19, 2018, we 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 us 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 ours and rank equal in right of payment to all of our 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. We are 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 matured on April 17, 2020 and bore interest at a floating rate, reset quarterly, equal to LIBOR plus 70 basis points. We were 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. We may redeem the Fixed Rate Notes of each series in whole or in part, at our 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, we 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 us 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 our ability and that of our 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. Upon the acquisition of Family Dollar in 2015, we assumed the liability for $300.0 million of 5.00% Senior Notes that were due February 1, 2021. Repayments of Long-term Debt During the first quarter of 2018, we redeemed our $750.0 million acquisition notes and accelerated the amortization of debt-issuance costs associated with the notes of $6.1 million, which is included in “Interest expense, net” within the accompanying consolidated statements of operations for the year ended February 2, 2019. In connection with entry into the Credit Agreement and the offering of the Notes discussed above, we 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 the $2.2 billion then outstanding under our existing senior secured credit facilities and to redeem the remaining $2.5 billion then outstanding under our acquisition debt. This resulted in the acceleration of the expensing of $41.2 million of amortizable non-cash deferred financing costs and our incurring $114.3 million in prepayment penalties, which are reflected in “Interest expense, net” within the accompanying consolidated statements of operations for the year ended February 2, 2019. In the fourth quarter of 2019, we prepaid $500.0 million of our $750.0 million Floating Rate Notes and we repaid the remaining $250.0 million outstanding in the first quarter of 2020. In the fourth quarter of 2020, we repaid the $300.0 million 5.00% Senior Notes. Debt Covenants As of January 30, 2021, we were in compliance with our debt covenants. |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The lease cost for operating leases that was recognized in the accompanying consolidated statements of operations was as follows: Year Ended (in millions) January 30, 2021 February 1, 2020 Operating lease cost $ 1,551.2 $ 1,520.5 Variable lease cost 391.4 375.9 Short-term lease cost 9.7 14.8 Total lease cost* $ 1,952.3 $ 1,911.2 *Excludes sublease income, which is immaterial As previously disclosed in our Annual Report on Form 10-K for the year ended February 2, 2019 and in accordance with ASC 840, rental expense for the year ended February 2, 2019 was $1,411.3 million. As of January 30, 2021, maturities of lease liabilities were as follows: (in millions) 2021 $ 1,467.5 2022 1,372.0 2023 1,159.0 2024 939.9 2025 706.3 Thereafter 1,578.0 Total undiscounted lease payments 7,222.7 Less interest 809.0 Present value of lease liabilities $ 6,413.7 The future lease payments above exclude $236.8 million of legally binding minimum lease payments for leases signed but not yet commenced as of January 30, 2021. Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is as follows: January 30, 2021 February 1, 2020 Weighted-average remaining lease term (years) 6.1 6.4 Weighted-average discount rate 3.9 % 4.3 % The following represents supplemental information pertaining to our operating lease arrangements: Year Ended (in millions) January 30, 2021 February 1, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,519.4 $ 1,433.4 Right-of-use assets obtained in exchange for new operating lease liabilities 1,440.2 1,286.1 Distribution Center Lease and Related Bonds In May 2017, we entered into a long-term property lease (“Missouri Lease”) which includes land and the construction of a 1.2 million square foot distribution center in Warrensburg, Missouri (“Distribution Center Project”). The Distribution Center Project was completed in 2018 and our investment in the project of $96.9 million as of January 30, 2021 is reflected in “Property, plant and equipment, net.” The Missouri Lease commenced upon its execution in May 2017 and expires on December 1, 2032. We have two options to extend the Missouri Lease term for up to a combined additional ten years. Following the expiration of the lease, the property reverts back to us. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and Level 3 - Unobservable inputs in which there is little or no market data which require the reporting entity to develop its own assumptions. 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. Our 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. 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). We review certain store assets for evidence of impairment. The fair values are determined based on the income approach, in which we utilize internal cash flow projections over the life of the underlying lease agreements discounted based on our risk-adjusted rate. These measures of fair value, and related inputs, are considered a Level 3 approach under the fair value hierarchy. Refer to Note 1 under the caption “Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of” for information regarding the impairment charges recorded in fiscal 2020, 2019 and 2018. Our indefinite-lived intangible assets are recorded at carrying value, and, if impaired, are adjusted to fair value using Level 3 inputs. See Note 3 for further information regarding the process of determining the fair value of these assets. Fair Value of Financial Instruments The carrying amounts of Cash and cash equivalents, Restricted cash and Accounts payable as reported in the accompanying consolidated balance sheets approximate fair value due to their short-term maturities. The aggregate fair values and carrying values of our long-term borrowings were as follows: January 30, 2021 February 1, 2020 (in millions) Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,654.4 $ 3,231.5 $ 4,064.5 $ 3,779.9 The fair values of our Senior Notes were determined using Level 1 inputs as quoted prices in active markets for identical assets or liabilities are available. The carrying value of our Revolving Credit Facility approximates its fair value because the interest rates vary with market interest rates. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Preferred Stock We are authorized to issue 10,000,000 shares of Preferred Stock, $0.01 par value per share. No preferred shares are issued and outstanding at January 30, 2021 and February 1, 2020. Net Income (Loss) Per Share The following table sets forth the calculations of basic and diluted net income (loss) per share: Year Ended January 30, February 1, February 2, (in millions, except per share data) 2021 2020 2019 Basic net income (loss) per share: Net income (loss) $ 1,341.9 $ 827.0 $ (1,590.8) Weighted average number of shares outstanding 236.4 237.2 237.9 Basic net income (loss) per share $ 5.68 $ 3.49 $ (6.69) Diluted net income (loss) per share: Net income (loss) $ 1,341.9 $ 827.0 $ (1,590.8) Weighted average number of shares outstanding 236.4 237.2 237.9 Dilutive effect of stock options and restricted stock (as determined by 0.9 1.1 — Weighted average number of shares and dilutive potential shares 237.3 238.3 237.9 Diluted net income (loss) per share $ 5.65 $ 3.47 $ (6.69) At January 30, 2021 and February 1, 2020, substantially all of the stock options outstanding were included in the calculation of the weighted average number of shares and dilutive potential shares outstanding. As a result of the net loss for the year ended February 2, 2019, diluted net income (loss) per share excludes the impact of stock options and restricted stock (as determined by applying the treasury stock method) because the effect would be anti-dilutive. Share Repurchase Programs We repurchased 3,982,478 shares of common stock on the open market for $400.0 million in fiscal 2020 and we repurchased 1,967,355 shares of common stock on the open market for $200.0 million in fiscal 2019. We did not repurchase any shares of common stock in fiscal 2018. At January 30, 2021, we had $400.0 million remaining under Board repurchase authorization. Subsequently, on March 2, 2021, the Board increased the share repurchase authorization by $2.0 billion resulting in a total share repurchase authorization of $2.4 billion. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Dollar Tree Retirement Savings Plan We maintain a defined contribution profit sharing and 401(k) plan which is available to all full-time, United States-based employees over 21 years of age. Eligible employees may make elective salary deferrals. We may make contributions, at our discretion, to eligible employees who have completed one year of service in which they have worked at least 1,000 hours. Contributions to and reimbursements by us of expenses of the plan were recorded in the accompanying consolidated statements of operations as follows: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Cost of sales $ 7.4 $ 8.1 $ 8.7 Selling, general and administrative expenses 19.0 17.0 32.7 Total $ 26.4 $ 25.1 $ 41.4 Eligible employees vest in our profit sharing contributions based on the following schedule: • 20% after two years of service • 40% after three years of service • 60% after four years of service • 100% after five years of service All eligible employees are immediately vested in any company match contributions under the 401(k) portion of the plan. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Fixed Stock-Based Compensation Plans Under our 2011 Omnibus Incentive Plan (“Omnibus Plan”), we may grant to our employees, including executive officers and independent contractors, up to 4.0 million shares of our Common Stock plus any shares available under former plans which were previously approved by the shareholders. The Omnibus Plan permits us to grant equity awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), performance bonuses, performance share units (“PSUs”), non-employee director stock options and other equity-related awards. These awards generally vest over a three-year period with a maximum term of 10 years. No awards may be granted under the Omnibus Plan after March 16, 2021. Stock appreciation rights may be awarded alone or in tandem with stock options. When the stock appreciation rights are exercisable, the holder may surrender all or a portion of the unexercised stock appreciation right and receive in exchange an amount equal to the excess of the fair market value at the date of exercise over the fair market value at the date of the grant. No stock appreciation rights have been granted to date. Any restricted stock, RSUs or PSUs awarded are subject to certain general restrictions. The restricted stock shares or units may not be sold, transferred, pledged or disposed of until the restrictions on the shares or units have lapsed or have been removed under the provisions of the plan. In addition, if a holder of restricted shares or units ceases to be employed by us, any shares or units in which the restrictions have not lapsed will be forfeited. The 2013 Director Deferred Compensation Plan permits any of our directors who receive a retainer or other fees for Board or Board committee service to defer all or a portion of such fees until a future date, at which time they may be paid in cash or shares of our common stock, or receive all or a portion of such fees in non-statutory stock options. Deferred fees that are paid out in cash will earn interest at the 30-year Treasury Bond Rate. If a director elects to be paid in common stock, the number of shares will be determined by dividing the deferred fee amount by the closing market price of a share of our common stock on the date of deferral. The number of options issued to a director will equal the deferred fee amount divided by 33% of the price of a share of our common stock. The exercise price will equal the fair market value of our common stock at the date the option is issued. The options are fully vested when issued and have a term of 10 years. In conjunction with the acquisition of Family Dollar in 2015, we assumed the Family Dollar Stores, Inc. 2006 Incentive Plan (the “2006 Plan”). The 2006 Plan permitted the granting of a variety of compensatory award types, including stock options and performance share rights. Total stock-based compensation expense was recorded in the accompanying consolidated statements of operations as follows: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Cost of sales $ 15.4 $ 12.9 $ 12.1 Selling, general and administrative expenses 68.5 48.5 51.2 Total stock-based compensation expense $ 83.9 $ 61.4 $ 63.3 Excess tax benefit (deficit) on stock-based compensation $ (2.8) $ 3.8 $ (1.3) Restricted Stock We issue service-based RSUs to employees and officers and issue PSUs to certain of our officers. We recognize expense based on the estimated fair value of the RSUs or PSUs 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 and PSUs is determined using our closing stock price on the date of grant. Service-Based RSUs The following table summarizes the status of service-based RSUs as of January 30, 2021 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at February 1, 2020 1,049,081 $ 95.17 Granted 850,132 73.24 Vested (533,032) 91.05 Forfeited (100,965) 82.78 Nonvested at January 30, 2021 1,265,216 $ 83.16 The total fair value of the service-based restricted shares vested during the years ended January 30, 2021, February 1, 2020 and February 2, 2019 was $48.5 million, $55.5 million and $50.2 million, respectively. The weighted average grant date fair value of the RSUs granted in 2020, 2019 and 2018 was $73.24, $103.55 and $94.30, respectively. As of January 30, 2021, there was $53.5 million of total unrecognized compensation expense related to these RSUs which is expected to be recognized over a weighted-average period of 1.4 years. PSUs The following table summarizes the status of PSUs as of January 30, 2021 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at February 1, 2020 320,500 $ 99.29 Granted 428,377 74.46 Vested (221,876) 88.12 Forfeited (103,729) 85.84 Nonvested at January 30, 2021 423,272 $ 82.67 The total fair value of the PSUs vested during the years ended January 30, 2021, February 1, 2020 and February 2, 2019 was $19.6 million, $3.3 million and $4.2 million, respectively. The weighted average grant date fair value of the PSUs granted in 2020, 2019 and 2018 was $74.46, $103.71 and $94.90, respectively. As of January 30, 2021, there was $17.2 million of total unrecognized compensation expense related to these RSUs which is expected to be recognized over a weighted-average period of one year. Stock Options Stock options are valued using the Black-Scholes option-pricing model and compensation expense is recognized on a straight-line basis over the requisite service period. Options granted in 2020, 2019 and 2018 are immaterial. Certain of our directors elected to defer their compensation into stock options under the 2013 Director Deferred Compensation Plan. These options vest immediately and are expensed on the grant date. The following tables summarize information about options outstanding at January 30, 2021 and changes during the year then ended: Number of Shares Weighted Average Per Share Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding, beginning of period 205,893 $ 76.87 Granted 6,412 89.77 Exercised (94,890) 74.19 Forfeited (358) 76.97 Outstanding, end of period 117,057 $ 79.75 4.4 $ 2.6 Options vested and exercisable at January 30, 2021 117,057 $ 79.75 4.4 $ 2.6 |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 12 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | Segments and Disaggregated Revenue We operate a chain of more than 15,600 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our CODM regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income. The CODM reviews these metrics for each of our reporting segments. We may revise the measurement of each segment’s operating income, as determined by the information regularly reviewed by the CODM. If the measurement of a segment changes, prior period amounts and balances are reclassified to be comparable to the current period’s presentation. Corporate, support and Other consists primarily of store support center costs that are considered shared services and therefore these selling, general and administrative costs are excluded from our two reporting business segments. These costs include operating expenses for our store support centers in Chesapeake, Virginia and Matthews, North Carolina. During fiscal 2019, we consolidated our Matthews, North Carolina store support center with our store support center in Chesapeake, Virginia. Corporate, support and Other also includes the results of operations for our Summit Pointe property in Chesapeake, Virginia. Amounts for the years ended February 1, 2020 and February 2, 2019 have been reclassified to be comparable to the current year presentation. Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income (loss) before income taxes, is as follows: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Consolidated Statements of Operations Data: Net sales: Dollar Tree $ 13,265.0 $ 12,507.9 $ 11,712.1 Family Dollar 12,243.4 11,102.9 11,111.2 Corporate, support and Other 0.9 — — Consolidated Net sales $ 25,509.3 $ 23,610.8 $ 22,823.3 Gross profit: Dollar Tree $ 4,543.8 $ 4,342.9 $ 4,137.5 Family Dollar 3,243.6 2,697.8 2,810.0 Corporate, support and Other 0.9 — — Consolidated Gross profit $ 7,788.3 $ 7,040.7 $ 6,947.5 Operating income (loss): Dollar Tree $ 1,598.0 $ 1,670.2 $ 1,657.4 Family Dollar 655.6 (74.9) (2,312.8) Corporate, support and Other (365.7) (333.1) (284.1) Consolidated Operating income (loss) 1,887.9 1,262.2 (939.5) Interest expense, net 147.3 162.1 370.0 Other expense (income), net 0.8 1.4 (0.5) Income (loss) before income taxes $ 1,739.8 $ 1,098.7 $ (1,309.0) Depreciation and amortization expense: Dollar Tree $ 302.3 $ 277.7 $ 254.0 Family Dollar 352.6 337.9 345.3 Corporate, support and Other 31.8 30.1 22.1 Consolidated depreciation and amortization expense $ 686.7 $ 645.7 $ 621.4 As of January 30, February 1, (in millions) 2021 2020 Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 424.9 $ 423.8 Family Dollar 1,559.5 1,559.5 Consolidated Goodwill $ 1,984.4 $ 1,983.3 Total assets: Dollar Tree $ 8,669.3 $ 7,694.0 Family Dollar 11,562.2 11,484.9 Corporate, support and Other 464.5 395.7 Consolidated Total assets $ 20,696.0 $ 19,574.6 Additions to property, plant and equipment: Dollar Tree $ 470.4 $ 547.5 Family Dollar 362.1 425.2 Corporate, support and Other 66.3 62.1 Consolidated additions to property, plant and equipment $ 898.8 $ 1,034.8 Goodwill is reassigned between segments when previously acquired stores are re-bannered between segments. The goodwill related to previously acquired re-bannered stores in 2020 was not material. In 2019, we reassigned $47.6 million of goodwill from Family Dollar to Dollar Tree as a result of re-bannering. In addition, in the fourth quarters of 2019 and 2018, we recorded goodwill impairment charges of $313.0 million and $2.73 billion, respectively, to write down the Family Dollar goodwill. Refer to Note 3 for additional detail regarding impairment of the Family Dollar goodwill. Disaggregated Revenue The following table summarizes net sales by merchandise category for our segments: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Dollar Tree segment net sales by Consumable $ 6,407.0 48.3 % $ 6,155.3 49.2 % $ 5,703.8 48.7 % Variety 6,194.8 46.7 % 5,732.1 45.8 % 5,457.8 46.6 % Seasonal 663.2 5.0 % 620.5 5.0 % 550.5 4.7 % Total Dollar Tree segment net sales $ 13,265.0 100.0 % $ 12,507.9 100.0 % $ 11,712.1 100.0 % Family Dollar segment net sales by Consumable $ 9,367.8 76.5 % $ 8,604.7 77.5 % $ 8,466.7 76.2 % Home products 1,078.1 8.8 % 866.0 7.8 % 911.1 8.2 % Apparel and accessories 690.1 5.6 % 644.0 5.8 % 700.0 6.3 % Seasonal and electronics 1,107.4 9.1 % 988.2 8.9 % 1,033.4 9.3 % Total Family Dollar segment net sales $ 12,243.4 100.0 % $ 11,102.9 100.0 % $ 11,111.2 100.0 % |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following table sets forth certain items from our unaudited consolidated statements of operations for each quarter of fiscal year 2020 and 2019. The unaudited information has been prepared on the same basis as the audited consolidated financial statements appearing elsewhere in this report and includes all adjustments, consisting only of normal recurring adjustments, which management considers necessary for a fair presentation of the financial data shown. The operating results for any quarter are not necessarily indicative of results for a full year or for any future period. (dollars in millions, except diluted net income per share data) First Quarter 1 Second Third Fourth Fiscal 2020: Net sales $ 6,286.8 $ 6,277.6 $ 6,177.0 $ 6,767.9 Gross profit $ 1,794.9 $ 1,916.2 $ 1,924.4 $ 2,152.8 Operating income $ 365.9 $ 374.9 $ 465.5 $ 681.6 Net income $ 247.6 $ 261.5 $ 330.0 $ 502.8 Diluted net income per share $ 1.04 $ 1.10 $ 1.39 $ 2.13 Stores open at end of quarter 15,370 15,479 15,606 15,685 Comparable store net sales change 2 7.0 % 7.2 % 5.1 % 4.9 % Fiscal 2019: Net sales $ 5,808.7 $ 5,740.6 $ 5,746.2 $ 6,315.3 Gross profit $ 1,727.2 $ 1,648.5 $ 1,704.5 $ 1,960.5 Operating income 3,4 $ 385.5 $ 268.9 $ 358.4 $ 249.4 Net income 3,4,5 $ 267.9 $ 180.3 $ 255.8 $ 123.0 Diluted net income per share 3,4,5 $ 1.12 $ 0.76 $ 1.08 $ 0.52 Stores open at end of quarter 15,264 15,115 15,262 15,288 Comparable store net sales change 2 2.2 % 2.4 % 2.5 % 0.4 % ______________ 1 Easter was observed on April 12, 2020 and April 21, 2019. 2 The comparable store net sales change calculation includes only those stores that are open throughout both of the periods being compared, beginning after the first fifteen months of operation. 3 In 2019, the results of the annual goodwill impairment test showed that the fair value of the Family Dollar reporting unit was lower than its carrying value, resulting in a $313.0 million non-cash pre-tax and after-tax goodwill impairment charge in the fourth quarter of fiscal 2019. This goodwill impairment charge reduced diluted net income per share by $1.32 per share in the fourth quarter of 2019. 4 In the fourth quarter of 2019, we recorded an $18.0 million charge to our litigation reserve. The recognition of this liability reduced diluted net income per share in the fourth quarter of 2019 by $0.06. 5 In the fourth quarter of 2019, we evaluated our foreign net operating loss carryforwards and determined that we expect to utilize the carryforwards for which we previously had provided a valuation allowance. The reduction of the valuation allowance increased net income and diluted net income per share in the fourth quarter of 2019 by $24.6 million and $0.10 per share, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segment Information | Segment Information At January 30, 2021, we operate more than 15,600 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our 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 predominantly at the fixed price point of $1.00. The Dollar Tree segment includes our operations under the “Dollar Tree” and “Dollar Tree Canada” brands, 15 distribution centers in the United States and two distribution centers in Canada. |
Foreign Currency | Foreign Currency The functional currencies of certain of our international subsidiaries are the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions, which are included in “Other expense (income), net” have not been significant. |
Fiscal Year | Fiscal YearOur fiscal year is a 52-week or 53-week period ending on the Saturday closest to January 31. References to “2020” or “fiscal 2020,” “2019” or “fiscal 2019,” and “2018” or “fiscal 2018” relate to the 52-week fiscal years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents at January 30, 2021 and February 1, 2020 includes $1,135.0 million and $287.6 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. We consider all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions process within three business days, and therefore are classified as cash and cash equivalents. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories at our distribution centers are stated at the lower of cost or net realizable value, determined on a weighted-average cost basis. Cost is assigned to store inventories using the retail inventory method on a weighted-average basis. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are computed by applying a calculated cost-to-retail ratio to the retail value of inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Leasehold improvements are amortized over the shorter of the estimated useful lives of the respective assets or the related lease terms. Amortization is included in “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. Costs incurred related to software developed for internal use are capitalized and amortized, generally over three years. |
Capitalized Interest | Capitalized Interest We capitalize interest on borrowed funds during the construction of certain property and equipment. |
Insurance Reserves And Restricted Cash | Insurance Reserves and Restricted Cash We utilize a combination of insurance and self-insurance programs, including a wholly-owned captive insurance entity, to provide for the potential liabilities for certain risks, including workers’ compensation, general liability and automobile liability. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering claims experience, exposure and severity factors and other actuarial assumptions. Dollar Tree Insurance, Inc., a South Carolina-based wholly-owned captive insurance subsidiary of ours, charges the operating subsidiary companies premiums to insure the retained workers’ compensation, general liability and automobile liability exposures. Pursuant to South Carolina insurance regulations, Dollar Tree Insurance, Inc. maintains certain levels of cash and cash equivalents related to its self-insured exposures. We also maintain certain cash balances related to our insurance programs, which are held in trust and restricted as to withdrawal or use. |
Lease Accounting | Lease Accounting In the first quarter of fiscal 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (Topic 842)” and subsequent amendments, using the optional effective date transition method provided by accounting pronouncement, ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” and recorded a cumulative effect adjustment to beginning retained earnings. Our reporting for the fiscal 2018 comparative period presented in the consolidated financial statements continues to be in accordance with Accounting Standards Codification (“ASC”) Topic 840, “ Leases. ” Adoption of the standard resulted in the recognition of Operating lease right-of-use assets and Operating lease liabilities of $6.2 billion and $6.1 billion, respectively, and a reduction to Retained earnings of $65.3 million, net of tax, as of February 3, 2019. For fiscal 2019, the adoption of the standard did not have a material impact on our consolidated statements of operations or consolidated statements of cash flows. Our lease portfolio primarily consists of leases for our retail store locations and we also lease vehicles and trailers, as well as distribution center space and equipment. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. We recognize expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of future lease payments. Inputs to the calculation of our incremental borrowing rate include the valuations and yields of our outstanding senior notes and their credit spreads over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification. Most leases include one or more options to renew and the exercise of renewal options is at our sole discretion. We do not include renewal options in our determination of the lease term unless the renewals are deemed to be reasonably certain. Operating lease expense for lease payments not yet paid is recognized on a straight-line basis over the lease term. The operating lease right-of-use asset is reduced by lease incentives, which has the effect of lowering the operating lease expense. Operating lease right-of-use assets are periodically reviewed for impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. We have real estate leases that typically include payments related to non-lease components, such as common area maintenance, as well as payments for real estate taxes and insurance which are not considered components of the lease. These payments are generally variable and based on actual costs incurred by the lessor. These costs are expensed as incurred as variable lease costs and excluded for the purpose of calculating the right-of-use asset and lease liability. A smaller number of real estate leases contain fixed payments for common area maintenance, real estate taxes and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use asset and lease liability. In addition, certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. These payments are expensed as incurred as variable lease costs. Our lease agreements do not contain any material residual value guarantees or material restrictive financial covenants. Purchased leases with terms which were either favorable or unfavorable as compared to prevailing market rates at the date of acquisition are amortized over the remaining lease terms, including, in some cases, an assumed renewal. Amortization expense, net of $48.1 million, $52.9 million and $65.4 million was recognized in “Selling, general and administrative expenses” in 2020, 2019 and 2018, respectively, related to these lease rights. |
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of We review our long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets based on discounted cash flows or other readily available evidence of fair value, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In fiscal 2020, 2019 and 2018, we recorded charges of $4.6 million, $9.1 million and $13.0 million, respectively, to write down certain assets, including $3.8 million and $8.5 million in fiscal 2020 and fiscal 2019, respectively, to write down Operating lease right-of-use assets. These charges are recorded as a component of “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. |
Goodwill and Nonamortizing Intangible Assets | Goodwill and Nonamortizing Intangible Assets Goodwill and nonamortizing intangible assets, including the Family Dollar trade name, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and nonamortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We perform a qualitative assessment to determine whether it is more likely than not that the Family Dollar trade name is impaired. If we determine that it is more likely than not that an impairment exists, we evaluate the Family Dollar trade name for impairment by comparing its fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. Subsequent to the evaluation of the Family Dollar trade name for impairment, we perform a goodwill impairment evaluation. In the event that a qualitative assessment of the fair value of a reporting unit indicates it is more likely than not that the fair value is less than the carrying amount, we then estimate the fair value of the reporting unit using a combination of a market multiple method and a discounted cash flow method. We recognize goodwill impairment for the amount by which the reporting unit’s carrying amount exceeds its estimated fair value, not to exceed the total carrying amount of goodwill allocated to the reporting unit. Our reporting units are determined in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” |
Revenue Recognition And Taxes Collected | Revenue Recognition We recognize sales revenue, net of estimated returns and sales tax, at the time the customer tenders payment for and takes control of the merchandise. Taxes Collected We report taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions (i.e., sales tax) on a net (excluded from revenue) basis. |
Cost of Sales And Vendor Allowances | Cost of Sales We include the cost of merchandise, warehousing and distribution costs, and certain occupancy costs in cost of sales. Vendor Allowances We receive vendor support in the form of cash payments or allowances through a variety of reimbursements such as purchase discounts, cooperative advertising, markdowns, scandowns and volume rebates. We have agreements with vendors setting forth the specific conditions for each allowance or payment. We either recognize the allowance as a reduction of current costs or defer the payment over the period the related merchandise is sold. If the payment is a reimbursement for costs incurred, it is offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. |
Pre-Opening Costs | Pre-Opening Costs We expense pre-opening costs for new, expanded, relocated and re-bannered stores and for distribution centers, as incurred. |
Advertising Costs | Advertising CostsWe expense advertising costs as they are incurred and they are included in “Selling, general and administrative expenses” within the accompanying consolidated statements of operations. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. We recognize a financial statement benefit for a tax position if we determine that it is more likely than not that the position will be sustained upon examination. We include interest and penalties in the provision for income tax expense and income taxes payable. We do not provide for any penalties associated with tax contingencies unless they are considered probable of assessment. |
Stock-Based Compensation | Stock-Based Compensation We recognize expense for all share-based payments to employees and non-employee directors based on their fair values. Total stock-based compensation expense for 2020, 2019 and 2018 was $83.9 million, $61.4 million and $63.3 million, respectively. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share has been computed by dividing net income (loss) by the weighted average number of shares outstanding. Diluted net income (loss) per share reflects the potential dilution that could occur assuming the inclusion of dilutive potential shares and has been computed by dividing net income (loss) by the weighted average number of shares and dilutive potential shares outstanding. Dilutive potential shares include all outstanding stock options and unvested RSUs after applying the treasury stock method. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Property, plant and equipment, net, as of January 30, 2021 and February 1, 2020 consists of the following: January 30, February 1, (in millions) 2021 2020 Land $ 238.7 $ 233.5 Buildings 1,524.0 1,395.5 Leasehold improvements 2,631.7 2,335.1 Furniture, fixtures and equipment 4,229.4 3,813.2 Construction in progress 257.5 298.6 Total property, plant and equipment 8,881.3 8,075.9 Less: accumulated depreciation 4,765.0 4,194.1 Total property, plant and equipment, net $ 4,116.3 $ 3,881.8 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Property, plant and equipment, net, as of January 30, 2021 and February 1, 2020 consists of the following: January 30, February 1, (in millions) 2021 2020 Land $ 238.7 $ 233.5 Buildings 1,524.0 1,395.5 Leasehold improvements 2,631.7 2,335.1 Furniture, fixtures and equipment 4,229.4 3,813.2 Construction in progress 257.5 298.6 Total property, plant and equipment 8,881.3 8,075.9 Less: accumulated depreciation 4,765.0 4,194.1 Total property, plant and equipment, net $ 4,116.3 $ 3,881.8 |
Schedule of Other Current Liabilities | Other current liabilities as of January 30, 2021 and February 1, 2020 consist of the following: January 30, February 1, (in millions) 2021 2020 Taxes (other than income taxes) $ 305.0 $ 183.3 Compensation and benefits 162.8 102.8 Insurance 115.4 112.0 Accrued construction costs 44.9 51.1 Accrued utilities 27.8 22.0 Other 159.4 146.8 Total other current liabilities $ 815.3 $ 618.0 |
Goodwill and Nonamortizing In_2
Goodwill and Nonamortizing Intangible Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the years ended January 30, 2021 and February 1, 2020 are as follows: (in millions) Dollar Tree Family Dollar Total Balance at February 2, 2019 $ 376.5 $ 1,920.1 $ 2,296.6 Foreign currency translation adjustments (0.3) — (0.3) Goodwill reassignment for re-bannered stores 47.6 (47.6) — Goodwill impairment — (313.0) (313.0) Balance at February 1, 2020 423.8 1,559.5 1,983.3 Foreign currency translation adjustments 1.1 — 1.1 Balance at January 30, 2021 $ 424.9 $ 1,559.5 $ 1,984.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income tax provision (benefit) | The provision for income taxes consists of the following: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Current taxes: Federal $ 279.5 $ 210.1 $ 245.6 State 87.4 52.5 47.8 Foreign 0.2 0.1 0.4 Total current taxes 367.1 262.7 293.8 Deferred taxes: Federal 32.6 39.2 0.3 State (3.8) (5.6) (12.3) Foreign 2.0 (24.6) — Total deferred taxes 30.8 9.0 (12.0) Provision for income taxes $ 397.9 $ 271.7 $ 281.8 |
Federal statutory tax rate reconciliation | A reconciliation of the statutory U.S. federal income tax (benefit) rate and the effective tax rate follows: Year Ended January 30, 2021 February 1, 2020 February 2, 2019 Statutory U.S. federal income tax (benefit) rate 21.0 % 21.0 % (21.0) % Effect of: State and local income taxes, net of federal income tax benefit 3.2 3.7 3.0 Non-deductible executive compensation 0.4 — — Incremental tax expense (benefit) of exercises/vesting of equity-based 0.2 (0.4) 0.1 State tax reserve release (0.5) — — Work Opportunity Tax Credit (1.6) (2.7) (2.0) Goodwill impairment — 6.0 43.7 Deferred tax rate change — 0.1 — Change in valuation allowance — (2.2) 0.3 Tax Cuts and Jobs Act — — (1.3) Other, net 0.2 (0.8) (1.3) Effective tax rate 22.9 % 24.7 % 21.5 % |
Components of Deferred Tax Assets and Liabilities | Significant components of our net deferred tax assets (liabilities) follow: (in millions) January 30, February 1, Deferred tax assets: Operating lease liabilities $ 1,658.4 $ 1,621.8 Accrued expenses 72.9 26.0 Net operating losses, interest expense and credit carryforwards 95.5 102.2 Accrued compensation expense 47.2 31.6 State tax election 17.4 19.3 Other 3.2 2.4 Total deferred tax assets 1,894.6 1,803.3 Valuation allowance (16.8) (18.5) Deferred tax assets, net 1,877.8 1,784.8 Deferred tax liabilities: Property and equipment (410.5) (304.3) Operating lease right-of-use assets (1,587.2) (1,550.1) Other intangibles (840.4) (852.2) Inventory (4.8) (14.4) Prepaids (25.2) (24.1) Total deferred tax liabilities (2,868.1) (2,745.1) Deferred income taxes, net $ (990.3) $ (960.3) |
Reconciliation of Unrecognized Tax Benefits | The following is a reconciliation of our total gross unrecognized tax benefits: (in millions) January 30, 2021 February 1, 2020 Beginning Balance $ 28.9 $ 35.4 Additions, based on tax positions related to current year 1.2 0.9 Additions for tax positions of prior years 3.4 4.8 Lapses in statutes of limitation (10.9) (12.2) Ending balance $ 22.6 $ 28.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt at January 30, 2021 and February 1, 2020 consists of the following: January 30, 2021 February 1, 2020 (in millions) Principal Unamortized Debt Discount and Issuance Costs Principal Unamortized Debt Discount, Premium and Issuance Costs 5.00% Senior Notes, due 2021 $ — $ — $ 300.0 $ (2.4) $1.25 billion Revolving Credit Facility, interest payable at LIBOR, reset periodically, plus 1.125%, which was 1.24% at January 30, 2021 — 5.3 — 7.7 Senior Floating Rate Notes, due 2020 — — 250.0 0.2 3.70% Senior Notes, due 2023 1,000.0 4.2 1,000.0 5.9 4.00% Senior Notes, due 2025 1,000.0 5.1 1,000.0 6.2 4.20% Senior Notes, due 2028 1,250.0 9.2 1,250.0 10.2 Total $ 3,250.0 $ 23.8 $ 3,800.0 $ 27.8 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter $ — $ — $ 1,000.0 $ — $ 1,000.0 $ 1,250.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Operating lease information | The lease cost for operating leases that was recognized in the accompanying consolidated statements of operations was as follows: Year Ended (in millions) January 30, 2021 February 1, 2020 Operating lease cost $ 1,551.2 $ 1,520.5 Variable lease cost 391.4 375.9 Short-term lease cost 9.7 14.8 Total lease cost* $ 1,952.3 $ 1,911.2 *Excludes sublease income, which is immaterial Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is as follows: January 30, 2021 February 1, 2020 Weighted-average remaining lease term (years) 6.1 6.4 Weighted-average discount rate 3.9 % 4.3 % The following represents supplemental information pertaining to our operating lease arrangements: Year Ended (in millions) January 30, 2021 February 1, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,519.4 $ 1,433.4 Right-of-use assets obtained in exchange for new operating lease liabilities 1,440.2 1,286.1 |
Maturities of lease liabilities | As of January 30, 2021, maturities of lease liabilities were as follows: (in millions) 2021 $ 1,467.5 2022 1,372.0 2023 1,159.0 2024 939.9 2025 706.3 Thereafter 1,578.0 Total undiscounted lease payments 7,222.7 Less interest 809.0 Present value of lease liabilities $ 6,413.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair values and carrying values of long-term borrowings | The aggregate fair values and carrying values of our long-term borrowings were as follows: January 30, 2021 February 1, 2020 (in millions) Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,654.4 $ 3,231.5 $ 4,064.5 $ 3,779.9 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of basic and diluted net income (loss) per share | The following table sets forth the calculations of basic and diluted net income (loss) per share: Year Ended January 30, February 1, February 2, (in millions, except per share data) 2021 2020 2019 Basic net income (loss) per share: Net income (loss) $ 1,341.9 $ 827.0 $ (1,590.8) Weighted average number of shares outstanding 236.4 237.2 237.9 Basic net income (loss) per share $ 5.68 $ 3.49 $ (6.69) Diluted net income (loss) per share: Net income (loss) $ 1,341.9 $ 827.0 $ (1,590.8) Weighted average number of shares outstanding 236.4 237.2 237.9 Dilutive effect of stock options and restricted stock (as determined by 0.9 1.1 — Weighted average number of shares and dilutive potential shares 237.3 238.3 237.9 Diluted net income (loss) per share $ 5.65 $ 3.47 $ (6.69) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined Contribution Plan Expenses Table | Contributions to and reimbursements by us of expenses of the plan were recorded in the accompanying consolidated statements of operations as follows: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Cost of sales $ 7.4 $ 8.1 $ 8.7 Selling, general and administrative expenses 19.0 17.0 32.7 Total $ 26.4 $ 25.1 $ 41.4 |
Defined Contribution Plan Vesting Schedule Table | Eligible employees vest in our profit sharing contributions based on the following schedule: • 20% after two years of service • 40% after three years of service • 60% after four years of service • 100% after five years of service |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Total stock-based compensation expense was recorded in the accompanying consolidated statements of operations as follows: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Cost of sales $ 15.4 $ 12.9 $ 12.1 Selling, general and administrative expenses 68.5 48.5 51.2 Total stock-based compensation expense $ 83.9 $ 61.4 $ 63.3 Excess tax benefit (deficit) on stock-based compensation $ (2.8) $ 3.8 $ (1.3) |
Schedule of Restricted Stock Units Activity | The following table summarizes the status of service-based RSUs as of January 30, 2021 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at February 1, 2020 1,049,081 $ 95.17 Granted 850,132 73.24 Vested (533,032) 91.05 Forfeited (100,965) 82.78 Nonvested at January 30, 2021 1,265,216 $ 83.16 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the status of PSUs as of January 30, 2021 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at February 1, 2020 320,500 $ 99.29 Granted 428,377 74.46 Vested (221,876) 88.12 Forfeited (103,729) 85.84 Nonvested at January 30, 2021 423,272 $ 82.67 |
Schedule of Stock Option Activity | The following tables summarize information about options outstanding at January 30, 2021 and changes during the year then ended: Number of Shares Weighted Average Per Share Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding, beginning of period 205,893 $ 76.87 Granted 6,412 89.77 Exercised (94,890) 74.19 Forfeited (358) 76.97 Outstanding, end of period 117,057 $ 79.75 4.4 $ 2.6 Options vested and exercisable at January 30, 2021 117,057 $ 79.75 4.4 $ 2.6 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income (loss) before income taxes, is as follows: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Consolidated Statements of Operations Data: Net sales: Dollar Tree $ 13,265.0 $ 12,507.9 $ 11,712.1 Family Dollar 12,243.4 11,102.9 11,111.2 Corporate, support and Other 0.9 — — Consolidated Net sales $ 25,509.3 $ 23,610.8 $ 22,823.3 Gross profit: Dollar Tree $ 4,543.8 $ 4,342.9 $ 4,137.5 Family Dollar 3,243.6 2,697.8 2,810.0 Corporate, support and Other 0.9 — — Consolidated Gross profit $ 7,788.3 $ 7,040.7 $ 6,947.5 Operating income (loss): Dollar Tree $ 1,598.0 $ 1,670.2 $ 1,657.4 Family Dollar 655.6 (74.9) (2,312.8) Corporate, support and Other (365.7) (333.1) (284.1) Consolidated Operating income (loss) 1,887.9 1,262.2 (939.5) Interest expense, net 147.3 162.1 370.0 Other expense (income), net 0.8 1.4 (0.5) Income (loss) before income taxes $ 1,739.8 $ 1,098.7 $ (1,309.0) Depreciation and amortization expense: Dollar Tree $ 302.3 $ 277.7 $ 254.0 Family Dollar 352.6 337.9 345.3 Corporate, support and Other 31.8 30.1 22.1 Consolidated depreciation and amortization expense $ 686.7 $ 645.7 $ 621.4 As of January 30, February 1, (in millions) 2021 2020 Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 424.9 $ 423.8 Family Dollar 1,559.5 1,559.5 Consolidated Goodwill $ 1,984.4 $ 1,983.3 Total assets: Dollar Tree $ 8,669.3 $ 7,694.0 Family Dollar 11,562.2 11,484.9 Corporate, support and Other 464.5 395.7 Consolidated Total assets $ 20,696.0 $ 19,574.6 Additions to property, plant and equipment: Dollar Tree $ 470.4 $ 547.5 Family Dollar 362.1 425.2 Corporate, support and Other 66.3 62.1 Consolidated additions to property, plant and equipment $ 898.8 $ 1,034.8 |
Disaggregation of Revenue | The following table summarizes net sales by merchandise category for our segments: Year Ended January 30, February 1, February 2, (in millions) 2021 2020 2019 Dollar Tree segment net sales by Consumable $ 6,407.0 48.3 % $ 6,155.3 49.2 % $ 5,703.8 48.7 % Variety 6,194.8 46.7 % 5,732.1 45.8 % 5,457.8 46.6 % Seasonal 663.2 5.0 % 620.5 5.0 % 550.5 4.7 % Total Dollar Tree segment net sales $ 13,265.0 100.0 % $ 12,507.9 100.0 % $ 11,712.1 100.0 % Family Dollar segment net sales by Consumable $ 9,367.8 76.5 % $ 8,604.7 77.5 % $ 8,466.7 76.2 % Home products 1,078.1 8.8 % 866.0 7.8 % 911.1 8.2 % Apparel and accessories 690.1 5.6 % 644.0 5.8 % 700.0 6.3 % Seasonal and electronics 1,107.4 9.1 % 988.2 8.9 % 1,033.4 9.3 % Total Family Dollar segment net sales $ 12,243.4 100.0 % $ 11,102.9 100.0 % $ 11,111.2 100.0 % |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The operating results for any quarter are not necessarily indicative of results for a full year or for any future period. (dollars in millions, except diluted net income per share data) First Quarter 1 Second Third Fourth Fiscal 2020: Net sales $ 6,286.8 $ 6,277.6 $ 6,177.0 $ 6,767.9 Gross profit $ 1,794.9 $ 1,916.2 $ 1,924.4 $ 2,152.8 Operating income $ 365.9 $ 374.9 $ 465.5 $ 681.6 Net income $ 247.6 $ 261.5 $ 330.0 $ 502.8 Diluted net income per share $ 1.04 $ 1.10 $ 1.39 $ 2.13 Stores open at end of quarter 15,370 15,479 15,606 15,685 Comparable store net sales change 2 7.0 % 7.2 % 5.1 % 4.9 % Fiscal 2019: Net sales $ 5,808.7 $ 5,740.6 $ 5,746.2 $ 6,315.3 Gross profit $ 1,727.2 $ 1,648.5 $ 1,704.5 $ 1,960.5 Operating income 3,4 $ 385.5 $ 268.9 $ 358.4 $ 249.4 Net income 3,4,5 $ 267.9 $ 180.3 $ 255.8 $ 123.0 Diluted net income per share 3,4,5 $ 1.12 $ 0.76 $ 1.08 $ 0.52 Stores open at end of quarter 15,264 15,115 15,262 15,288 Comparable store net sales change 2 2.2 % 2.4 % 2.5 % 0.4 % ______________ 1 Easter was observed on April 12, 2020 and April 21, 2019. 2 The comparable store net sales change calculation includes only those stores that are open throughout both of the periods being compared, beginning after the first fifteen months of operation. 3 In 2019, the results of the annual goodwill impairment test showed that the fair value of the Family Dollar reporting unit was lower than its carrying value, resulting in a $313.0 million non-cash pre-tax and after-tax goodwill impairment charge in the fourth quarter of fiscal 2019. This goodwill impairment charge reduced diluted net income per share by $1.32 per share in the fourth quarter of 2019. 4 In the fourth quarter of 2019, we recorded an $18.0 million charge to our litigation reserve. The recognition of this liability reduced diluted net income per share in the fourth quarter of 2019 by $0.06. 5 In the fourth quarter of 2019, we evaluated our foreign net operating loss carryforwards and determined that we expect to utilize the carryforwards for which we previously had provided a valuation allowance. The reduction of the valuation allowance increased net income and diluted net income per share in the fourth quarter of 2019 by $24.6 million and $0.10 per share, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 30, 2021USD ($)provincestorestate$ / shares | Oct. 31, 2020store$ / shares | Aug. 01, 2020store$ / shares | May 02, 2020store$ / shares | Feb. 01, 2020USD ($)store$ / shares | Nov. 02, 2019store$ / shares | Aug. 03, 2019store$ / shares | May 04, 2019store$ / shares | Jan. 30, 2021USD ($)distribution_centerprovincestorestatesegment$ / shares | Feb. 01, 2020USD ($)store$ / shares | Feb. 02, 2019USD ($)$ / shares | Feb. 03, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of retail discount stores | store | 15,685 | 15,606 | 15,479 | 15,370 | 15,288 | 15,262 | 15,115 | 15,264 | 15,685 | 15,288 | ||
Number of states/provinces the Company operates in | state | 48 | 48 | ||||||||||
Number of reporting business segments | segment | 2 | |||||||||||
Money market securities valued at cost, in cash and cash equivalents | $ 1,135,000,000 | $ 287,600,000 | $ 1,135,000,000 | $ 287,600,000 | ||||||||
Warehousing and distribution costs capitalized into inventory | $ 172,700,000 | $ 169,700,000 | 172,700,000 | 169,700,000 | ||||||||
Interest Costs Capitalized | 3,200,000 | 2,400,000 | $ 4,200,000 | |||||||||
Amortization expense, net | 48,100,000 | |||||||||||
Amortization expense, net | 52,900,000 | 65,400,000 | ||||||||||
Impairment charge for certain store assets | 4,600,000 | 9,100,000 | 13,000,000 | |||||||||
Operating lease, impairment loss | 3,800,000 | 8,500,000 | ||||||||||
Advertising costs | 80,800,000 | 102,900,000 | 99,900,000 | |||||||||
Stock-based compensation expense | $ 83,900,000 | $ 61,400,000 | $ 63,300,000 | |||||||||
Diluted net income (loss) per share (usd per share) | $ / shares | $ 2.13 | $ 1.39 | $ 1.10 | $ 1.04 | $ 0.52 | $ 1.08 | $ 0.76 | $ 1.12 | $ 5.65 | $ 3.47 | $ (6.69) | |
Operating lease right-of-use assets | $ 6,324,100,000 | $ 6,225,000,000 | $ 6,324,100,000 | $ 6,225,000,000 | $ 6,200,000,000 | |||||||
Operating lease liabilities | 6,413,700,000 | 6,413,700,000 | 6,100,000,000 | |||||||||
Stockholders' equity | $ (7,285,300,000) | (6,254,800,000) | $ (7,285,300,000) | (6,254,800,000) | (5,642,900,000) | $ (7,182,300,000) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Stockholders' equity | 65,300,000 | |||||||||||
Software Development | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life (in years) | 3 years | |||||||||||
Buildings | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life (in years) | 39 years | |||||||||||
Buildings | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life (in years) | 40 years | |||||||||||
Furniture, fixtures and equipment | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life (in years) | 3 years | |||||||||||
Furniture, fixtures and equipment | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life (in years) | 15 years | |||||||||||
Dollar Tree | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Merchandise fixed price | $ 1 | |||||||||||
Family Dollar | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of distribution centers | distribution_center | 11 | |||||||||||
United States | Dollar Tree | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of distribution centers | distribution_center | 15 | |||||||||||
Canada | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of states/provinces the Company operates in | province | 5 | 5 | ||||||||||
Canada | Dollar Tree | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of distribution centers | distribution_center | 2 | |||||||||||
Retained Earnings | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Stockholders' equity | $ (5,179,700,000) | $ (3,837,800,000) | $ (5,179,700,000) | $ (3,837,800,000) | (3,076,100,000) | $ (4,666,900,000) | ||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Stockholders' equity | $ 65,300,000 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | $ 8,881.3 | $ 8,075.9 | |
Less: accumulated depreciation | 4,765 | 4,194.1 | |
Total property, plant and equipment, net | 4,116.3 | 3,881.8 | |
Depreciation expense | 631.1 | 581.9 | $ 555.7 |
Other Current Liabilities | |||
Taxes (other than income taxes) | 305 | 183.3 | |
Compensation and benefits | 162.8 | 102.8 | |
Insurance | 115.4 | 112 | |
Accrued construction costs | 44.9 | 51.1 | |
Accrued utilities | 27.8 | 22 | |
Other | 159.4 | 146.8 | |
Total other current liabilities | 815.3 | 618 | |
Land | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 238.7 | 233.5 | |
Buildings | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 1,524 | 1,395.5 | |
Leasehold improvements | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 2,631.7 | 2,335.1 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 4,229.4 | 3,813.2 | |
Construction in progress | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | $ 257.5 | $ 298.6 |
Goodwill and Nonamortizing In_3
Goodwill and Nonamortizing Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill [Roll Forward] | |||||
Goodwill beginning balance | $ 1,983.3 | $ 2,296.6 | |||
Foreign currency translation adjustments | 1.1 | (0.3) | |||
Goodwill reassignment for re-bannered stores | 0 | ||||
Goodwill impairment | 0 | (313) | $ (2,727) | ||
Goodwill ending balance | $ 1,983.3 | $ 2,296.6 | 1,984.4 | 1,983.3 | 2,296.6 |
Dollar Tree | |||||
Goodwill [Roll Forward] | |||||
Goodwill beginning balance | 423.8 | 376.5 | |||
Foreign currency translation adjustments | 1.1 | (0.3) | |||
Goodwill reassignment for re-bannered stores | 0 | 47.6 | |||
Goodwill impairment | 0 | ||||
Goodwill ending balance | 423.8 | 376.5 | 424.9 | 423.8 | 376.5 |
Family Dollar | |||||
Goodwill [Roll Forward] | |||||
Goodwill beginning balance | 1,559.5 | 1,920.1 | |||
Foreign currency translation adjustments | 0 | 0 | |||
Goodwill reassignment for re-bannered stores | (47.6) | (47.6) | |||
Goodwill impairment | (313) | (2,730) | (313) | ||
Goodwill ending balance | $ 1,559.5 | $ 1,920.1 | $ 1,559.5 | $ 1,559.5 | $ 1,920.1 |
Goodwill and Nonamortizing In_4
Goodwill and Nonamortizing Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill [Line Items] | |||||
Goodwill transfers | $ 0 | ||||
Goodwill impairment | $ 0 | 313,000,000 | $ 2,727,000,000 | ||
Impairment of indefinite lived intangible assets | 0 | 0 | $ 0 | ||
Dollar Tree | |||||
Goodwill [Line Items] | |||||
Goodwill transfers | $ 0 | 47,600,000 | |||
Goodwill impairment | $ 0 | ||||
Family Dollar | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | $ 313,000,000 | $ 2,730,000,000 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Current taxes: | |||
Federal | $ 279.5 | $ 210.1 | $ 245.6 |
State | 87.4 | 52.5 | 47.8 |
Foreign | 0.2 | 0.1 | 0.4 |
Total current taxes | 367.1 | 262.7 | 293.8 |
Deferred taxes: | |||
Federal | 32.6 | 39.2 | 0.3 |
State | (3.8) | (5.6) | (12.3) |
Foreign | 2 | (24.6) | 0 |
Total deferred taxes | 30.8 | 9 | (12) |
Provision for income taxes | $ 397.9 | $ 271.7 | $ 281.8 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax (benefit) rate | (21.00%) | (21.00%) | (21.00%) |
Effect of: | |||
State and local income taxes, net of federal income tax benefit | 3.20% | 3.70% | 3.00% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 0.40% | 0.00% | 0.00% |
Incremental tax expense (benefit) of exercises/vesting of equity-based compensation | 0.20% | (0.40%) | 0.10% |
Effective Income Tax Rate Reconciliation, State And Local Income Tax Reserve Release, Percent | (0.50%) | 0.00% | 0.00% |
Work Opportunity Tax Credit | (1.60%) | (2.70%) | (2.00%) |
Goodwill impairment | 0.00% | 6.00% | 43.70% |
Deferred tax rate change | 0.00% | 0.10% | 0.00% |
Change in valuation allowance | 0.00% | (2.20%) | 0.30% |
Tax Cuts and Jobs Act | 0 | 0 | (0.013) |
Other, net | 0.20% | (0.80%) | (1.30%) |
Effective tax rate | 22.90% | 24.70% | 21.50% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred tax assets: | ||
Operating lease liabilities | $ 1,658.4 | $ 1,621.8 |
Accrued expenses | 72.9 | 26 |
Net operating losses, interest expense and credit carryforwards | 95.5 | 102.2 |
Accrued compensation expense | 47.2 | 31.6 |
State tax election | 17.4 | 19.3 |
Other | 3.2 | 2.4 |
Total deferred tax assets | 1,894.6 | 1,803.3 |
Valuation allowance | (16.8) | (18.5) |
Deferred tax assets, net | 1,877.8 | 1,784.8 |
Deferred tax liabilities: | ||
Property and equipment | (410.5) | (304.3) |
Operating lease right-of-use assets | (1,587.2) | (1,550.1) |
Other intangibles | (840.4) | (852.2) |
Prepaids | (25.2) | (24.1) |
Inventory | (4.8) | (14.4) |
Total deferred tax liabilities | (2,868.1) | (2,745.1) |
Deferred income taxes, net | $ (990.3) | $ (960.3) |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning Balance | $ 28.9 | $ 35.4 |
Additions, based on tax positions related to current year | 1.2 | 0.9 |
Additions for tax positions of prior years | 3.4 | 4.8 |
Lapses in statutes of limitation | (10.9) | (12.2) |
Ending balance | $ 22.6 | $ 28.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Contingency [Line Items] | |||||
Goodwill impairment | $ 0 | $ 313 | $ 2,727 | ||
Operating loss carryforward, credit carryforward and capital loss carryforward | 95.5 | ||||
Valuation allowance | $ 18.5 | 16.8 | 18.5 | ||
Unrecognized tax benefits | 28.9 | $ 35.4 | 22.6 | $ 28.9 | $ 35.4 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 17.9 | ||||
Liability for potential interest and penalties | 2.6 | ||||
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Decrease in unrecognized tax benefits is reasonably possible | 6 | ||||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Decrease in unrecognized tax benefits is reasonably possible | $ 7 | ||||
Family Dollar | |||||
Income Tax Contingency [Line Items] | |||||
Goodwill impairment | $ 313 | $ 2,730 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Jan. 30, 2021USD ($) |
Letters of Credit [Abstract] | |
Letter of Credit Reimbursement and Security Agreement capacity | $ 356.5 |
Software Licenses And Support, Telecommunication Services And Store Technology Assets And Maintenance | |
Communications and Information Technology [Abstract] | |
Total commitment | 189.8 |
Letters Of Credit For Routine Purchases Of Imported Merchandise | |
Letters of Credit [Abstract] | |
Committed to letters of credit | 209.6 |
Stand-by Letter Of Credit Expiring In 2021 | |
Letters of Credit [Abstract] | |
Committed to letters of credit | 98.7 |
Surety Bond | |
Surety Bonds [Abstract] | |
Surety bonds | $ 96.5 |
Long-Term Debt - Summary Of Lon
Long-Term Debt - Summary Of Long-term Debt (Details) - USD ($) | Apr. 19, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2016 |
Debt Instrument [Line Items] | ||||
Principal | $ 3,250,000,000 | $ 3,800,000,000 | ||
Unamortized Debt Discount and Issuance Costs | 23,800,000 | 27,800,000 | ||
Borrowing capacity | 356,500,000 | |||
3.70% Senior Notes, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 3.70% | |||
4.00% Senior Notes, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 4.00% | |||
4.20% Senior Notes, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 4.20% | |||
Senior Notes | 5.00% Senior Notes, due 2021 | ||||
Debt Instrument [Line Items] | ||||
Principal | 0 | 300,000,000 | $ 300,000,000 | |
Unamortized Debt Discount and Issuance Costs | $ 0 | (2,400,000) | ||
Stated percentage | 5.00% | 5.00% | ||
Senior Notes | Senior Floating Rate Notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 750,000,000 | $ 0 | 250,000,000 | |
Unamortized Debt Discount and Issuance Costs | 0 | 200,000 | ||
Senior Notes | 3.70% Senior Notes, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Unamortized Debt Discount and Issuance Costs | $ 4,200,000 | 5,900,000 | ||
Stated percentage | 3.70% | 3.70% | ||
Senior Notes | 4.00% Senior Notes, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 1,000,000,000 | $ 1,000,000,000 | 1,000,000,000 | |
Unamortized Debt Discount and Issuance Costs | $ 5,100,000 | 6,200,000 | ||
Stated percentage | 4.00% | 4.00% | ||
Senior Notes | 4.20% Senior Notes, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 1,250,000,000 | $ 1,250,000,000 | 1,250,000,000 | |
Unamortized Debt Discount and Issuance Costs | $ 9,200,000 | 10,200,000 | ||
Stated percentage | 4.20% | 4.20% | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 2,030,000,000 | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 0 | 0 | ||
Unamortized Debt Discount and Issuance Costs | 5,300,000 | $ 7,700,000 | ||
Borrowing capacity | $ 1,250,000,000 | $ 1,250,000,000 | ||
Interest rate at period end | 1.24% | |||
LIBOR | Senior Notes | Senior Floating Rate Notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.70% | |||
LIBOR | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | 1.125% |
Long-Term Debt - Summary of Mat
Long-Term Debt - Summary of Maturities of Long-term Debt (Details) $ in Millions | Jan. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 1,000 |
2024 | 0 |
2025 | 1,000 |
Thereafter | $ 1,250 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Apr. 19, 2018 | May 02, 2020 | Feb. 01, 2020 | May 05, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2016 |
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 356,500,000 | |||||||
Principal amount of debt | $ 3,800,000,000 | 3,250,000,000 | $ 3,800,000,000 | |||||
Proceeds from revolving credit facility | 750,000,000 | 0 | $ 50,000,000 | |||||
Amortizable non-cash deferred financing costs | 41,200,000 | |||||||
Repayments of revolving credit facility | 750,000,000 | 0 | 50,000,000 | |||||
Prepayment penalties | $ 114,300,000 | |||||||
Revolving Credit Facility | COVID-19 | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from revolving credit facility | $ 750,000,000 | |||||||
3.70% Senior Notes, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated percentage | 3.70% | |||||||
4.00% Senior Notes, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated percentage | 4.00% | |||||||
4.20% Senior Notes, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated percentage | 4.20% | |||||||
Senior Secured Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of revolving credit facility | $ 2,200,000,000 | |||||||
Acquisition Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption of debt | $ 750,000,000 | |||||||
Amortizable non-cash deferred financing costs | $ 6,100,000 | |||||||
Principal payments for long-term debt | 2,500,000,000 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | 2,030,000,000 | |||||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 1,250,000,000 | 1,250,000,000 | ||||||
Principal amount of debt | 0 | $ 0 | 0 | |||||
Line of Credit | Revolving Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | 1.125% | ||||||
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Line of Credit | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 350,000,000 | |||||||
Line of Credit | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | 782,000,000 | |||||||
Proceeds from long-term debt, net of discount | $ 782,000,000 | |||||||
Line of Credit | Unsecured Debt | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Senior Notes | Senior Floating Rate Notes, due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 750,000,000 | 250,000,000 | $ 0 | 250,000,000 | ||||
Percentage of principal amount redeemed in event of change of control | 101.00% | |||||||
Principal payments for long-term debt | $ 250,000,000 | 500,000,000 | ||||||
Senior Notes | Senior Floating Rate Notes, due 2020 | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.70% | |||||||
Senior Notes | Fixed Rate Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 100.00% | |||||||
Senior Notes | 3.70% Senior Notes, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | 1,000,000,000 | ||||
Stated percentage | 3.70% | 3.70% | ||||||
Senior Notes | 4.00% Senior Notes, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | 1,000,000,000 | ||||
Stated percentage | 4.00% | 4.00% | ||||||
Senior Notes | 4.20% Senior Notes, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,250,000,000 | 1,250,000,000 | $ 1,250,000,000 | 1,250,000,000 | ||||
Stated percentage | 4.20% | 4.20% | ||||||
Senior Notes | 5.00% Senior Notes, due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 300,000,000 | $ 0 | $ 300,000,000 | $ 300,000,000 | ||||
Stated percentage | 5.00% | 5.00% | ||||||
Principal payments for long-term debt | $ 300,000,000 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,551.2 | $ 1,520.5 |
Variable lease cost | 391.4 | 375.9 |
Short-term lease cost | 9.7 | 14.8 |
Total lease cost | $ 1,952.3 | $ 1,911.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2017ft² | Feb. 02, 2019USD ($) | Jan. 30, 2021USD ($)option | Feb. 01, 2020USD ($) | |
Leases [Abstract] | ||||
Lease signed but not yet commenced | $ 236.8 | |||
Lessee, Lease, Description [Line Items] | ||||
Rental expense | $ 1,411.3 | |||
Area of leased property | ft² | 1.2 | |||
Property, plant and equipment | $ 4,116.3 | $ 3,881.8 | ||
Number of lease extension options | option | 2 | |||
Renewal term | 10 years | |||
Warrensburg, Missouri | Buildings | ||||
Lessee, Lease, Description [Line Items] | ||||
Property, plant and equipment | $ 96.9 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 02, 2019 |
Leases [Abstract] | ||
2020 | $ 1,467.5 | |
2021 | 1,372 | |
2022 | 1,159 | |
2023 | 939.9 | |
2024 | 706.3 | |
Thereafter | 1,578 | |
Total undiscounted lease payments | 7,222.7 | |
Less interest | 809 | |
Present value of lease liabilities | $ 6,413.7 | $ 6,100 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 6 years 1 month 6 days | 6 years 4 months 24 days |
Weighted-average discount rate | 3.90% | 4.30% |
Operating cash flows from operating leases | $ 1,519.4 | $ 1,433.4 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,440.2 | $ 1,286.1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - Fair value, inputs, level 1 - Senior Notes - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 3,654.4 | $ 4,064.5 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 3,231.5 | $ 3,779.9 |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Mar. 02, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Preferred Stock authorized to issue (in shares) | 10,000,000 | |||
Preferred Stock par value per share (usd per share) | $ 0.01 | |||
Class of Stock [Line Items] | ||||
Payments for repurchase of common stock | $ 400 | $ 200 | $ 0 | |
Preferred Stock authorized to issue (in shares) | 10,000,000 | |||
Preferred Stock par value per share (usd per share) | $ 0.01 | |||
Preferred Stock, shares issued (in shares) | 0 | 0 | ||
Preferred Stock, shares outstanding (in shares) | 0 | 0 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased | 4,000,000 | 1,900,000 | ||
Share Repurchase Programs | ||||
Class of Stock [Line Items] | ||||
Remaining amount authorized to be repurchase | $ 400 | |||
Share Repurchase Programs | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Increase in share repurchase authorization | $ 2,000 | |||
Total repurchase authorization | $ 2,400 | |||
Share Repurchase Programs | Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased | 3,982,478 | 1,967,355 | ||
Payments for repurchase of common stock | $ 400 | $ 200 |
Shareholders' Equity Sharehol_2
Shareholders' Equity Shareholders' Equity - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Basic net income (loss) per share: | |||||||||||
Net income (loss) | $ 1,341.9 | $ 827 | $ (1,590.8) | ||||||||
Weighted average number of shares outstanding (in shares) | 236.4 | 237.2 | 237.9 | ||||||||
Basic net income (loss) per share (usd per share) | $ 5.68 | $ 3.49 | $ (6.69) | ||||||||
Diluted net income (loss) per share: | |||||||||||
Net income (loss) | $ 1,341.9 | $ 827 | $ (1,590.8) | ||||||||
Weighted average number of shares outstanding (in shares) | 236.4 | 237.2 | 237.9 | ||||||||
Dilutive effect of stock options and restricted stock (as determined by applying the treasury stock method) (in shares) | 0.9 | 1.1 | 0 | ||||||||
Weighted average number of shares and dilutive potential shares outstanding (in shares) | 237.3 | 238.3 | 237.9 | ||||||||
Diluted net income (loss) per share (usd per share) | $ 2.13 | $ 1.39 | $ 1.10 | $ 1.04 | $ 0.52 | $ 1.08 | $ 0.76 | $ 1.12 | $ 5.65 | $ 3.47 | $ (6.69) |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021USD ($)yearhour | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Age over which all employees have 401K benefits available | year | 21 | ||
Employee service years required for available 401K benefits (in years) | 1 year | ||
Minimum hours in a 401K qualifying one year period (in hours) | hour | 1,000 | ||
Plan expenses | $ 26.4 | $ 25.1 | $ 41.4 |
Cost of sales | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan expenses | 7.4 | 8.1 | 8.7 |
Selling, general and administrative expenses | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan expenses | $ 19 | $ 17 | $ 32.7 |
Tranche one | Profit Sharing Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service years | 2 years | ||
Vesting percentage | 20.00% | ||
Tranche two | Profit Sharing Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service years | 3 years | ||
Vesting percentage | 40.00% | ||
Tranche three | Profit Sharing Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service years | 4 years | ||
Vesting percentage | 60.00% | ||
Tranche four | Profit Sharing Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service years | 5 years | ||
Vesting percentage | 100.00% |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 0.9 | $ 1.6 | $ 12.3 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 3 years | ||
Total fair value of vested instruments other than options | $ 48.5 | $ 55.5 | $ 50.2 |
Weighted average grant date fair value (dollars per share) | $ 73.24 | $ 103.55 | $ 94.30 |
Unrecognized compensation expense | $ 53.5 | ||
Weighted average period of recognition (in months) | 1 year 4 months 24 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 3 years | ||
Total fair value of vested instruments other than options | $ 19.6 | $ 3.3 | $ 4.2 |
Weighted average grant date fair value (dollars per share) | $ 74.46 | $ 103.71 | $ 94.90 |
Unrecognized compensation expense | $ 17.2 | ||
Weighted average period of recognition (in months) | 1 year | ||
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 4,000,000 | ||
Vesting period | 3 years | ||
Expected term | 10 years | ||
Director Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the share price of common stock used in the calculation to determine the number of options issued to a director (in hundredths) | 33.00% | ||
Director Deferred Compensation Plan | Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 10 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 83.9 | $ 61.4 | $ 63.3 |
Excess tax benefit (deficit) on stock-based compensation recognized in the Provision for income taxes | (2.8) | 3.8 | (1.3) |
Cost of sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 15.4 | 12.9 | 12.1 |
Selling, general and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 68.5 | $ 48.5 | $ 51.2 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted Stock Units (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Number of Shares | |||
Nonvested, beginning of period (shares) | 1,049,081 | ||
Granted (shares) | 850,132 | ||
Vested (shares) | (533,032) | ||
Forfeited (shares) | (100,965) | ||
Nonvested, end of period (shares) | 1,265,216 | 1,049,081 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, beginning of period (dollars per share) | $ 95.17 | ||
Granted (dollars per share) | 73.24 | $ 103.55 | $ 94.30 |
Vested (dollars per share) | 91.05 | ||
Forfeited (dollars per share) | 82.78 | ||
Nonvested, end of period (dollars per share) | $ 83.16 | $ 95.17 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Performance Stock Units (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Number of Shares | |||
Nonvested, beginning of period (shares) | 320,500 | ||
Granted (shares) | 428,377 | ||
Vested (shares) | (221,876) | ||
Forfeited (shares) | (103,729) | ||
Nonvested, end of period (shares) | 423,272 | 320,500 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, beginning of period (dollars per share) | $ 99.29 | ||
Granted (dollars per share) | 74.46 | $ 103.71 | $ 94.90 |
Vested (dollars per share) | 88.12 | ||
Forfeited (dollars per share) | 85.84 | ||
Nonvested, end of period (dollars per share) | $ 82.67 | $ 99.29 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Stock Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 205,893 |
Options granted (in shares) | shares | 6,412 |
Exercised (in shares) | shares | (94,890) |
Forfeited (in shares) | shares | (358) |
Outstanding, ending balance (in shares) | shares | 117,057 |
Options vested and exercisable (shares) | shares | 117,057 |
Weighted Average Per Share Exercise Price | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 76.87 |
Granted (dollars per share) | $ / shares | 89.77 |
Exercised (dollars per share) | $ / shares | 74.19 |
Forfeited (dollars per share) | $ / shares | 76.97 |
Outstanding, ending balance (dollars per share) | $ / shares | 79.75 |
Options vested and exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 79.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Term, Outstanding | 4 years 4 months 24 days |
Aggregate intrinsic value of options outstanding | $ | $ 2.6 |
Weighted Average Remaining Term, vested and exercisable | 4 years 4 months 24 days |
Aggregate intrinsic value, vested and expected to vest options | $ | $ 2.6 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020USD ($)store | Feb. 02, 2019USD ($) | Jan. 30, 2021USD ($)distribution_centerprovincestorestatesegment | Feb. 01, 2020USD ($)store | Feb. 02, 2019USD ($) | Oct. 31, 2020store | Aug. 01, 2020store | May 02, 2020store | Nov. 02, 2019store | Aug. 03, 2019store | May 04, 2019store | |
Segment Reporting Information [Line Items] | |||||||||||
Number of retail discount stores | store | 15,288 | 15,685 | 15,288 | 15,606 | 15,479 | 15,370 | 15,262 | 15,115 | 15,264 | ||
Number of states/provinces the Company operates in | state | 48 | ||||||||||
Number of reporting business segments | segment | 2 | ||||||||||
Goodwill transfers | $ 0 | ||||||||||
Goodwill impairment | $ 0 | 313 | $ 2,727 | ||||||||
Dollar Tree | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill transfers | $ 0 | 47.6 | |||||||||
Goodwill impairment | 0 | ||||||||||
Family Dollar | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of distribution centers | distribution_center | 11 | ||||||||||
Goodwill transfers | $ (47.6) | (47.6) | |||||||||
Goodwill impairment | $ 313 | $ 2,730 | $ 313 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of states/provinces the Company operates in | province | 5 | ||||||||||
Canada | Dollar Tree | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of distribution centers | distribution_center | 2 |
Segments and Disaggregated Re_4
Segments and Disaggregated Revenue - Information For Segments and Corporate and Support (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Condensed Consolidated Income Statement Data: | |||||||||||
Net sales | $ 6,767.9 | $ 6,177 | $ 6,277.6 | $ 6,286.8 | $ 6,315.3 | $ 5,746.2 | $ 5,740.6 | $ 5,808.7 | $ 25,509.3 | $ 23,610.8 | $ 22,823.3 |
Gross profit | 2,152.8 | 1,924.4 | 1,916.2 | 1,794.9 | 1,960.5 | 1,704.5 | 1,648.5 | 1,727.2 | 7,788.3 | 7,040.7 | 6,947.5 |
Operating income (loss) | 681.6 | $ 465.5 | $ 374.9 | $ 365.9 | 249.4 | $ 358.4 | $ 268.9 | $ 385.5 | 1,887.9 | 1,262.2 | (939.5) |
Interest expense, net | 147.3 | 162.1 | 370 | ||||||||
Other expense (income), net | 0.8 | 1.4 | (0.5) | ||||||||
Income (loss) before income taxes | 1,739.8 | 1,098.7 | (1,309) | ||||||||
Depreciation and amortization expense: | 686.7 | 645.7 | 621.4 | ||||||||
Condensed Consolidated Balance Sheet Data: | |||||||||||
Goodwill | 1,984.4 | 1,983.3 | 1,984.4 | 1,983.3 | 2,296.6 | ||||||
Total assets | 20,696 | 19,574.6 | 20,696 | 19,574.6 | |||||||
Additions to property, plant and equipment: | 898.8 | 1,034.8 | 817.1 | ||||||||
Corporate, support and Other | |||||||||||
Condensed Consolidated Income Statement Data: | |||||||||||
Net sales | 0.9 | 0 | 0 | ||||||||
Gross profit | 0.9 | 0 | 0 | ||||||||
Operating income (loss) | (365.7) | (333.1) | (284.1) | ||||||||
Depreciation and amortization expense: | 31.8 | 30.1 | 22.1 | ||||||||
Condensed Consolidated Balance Sheet Data: | |||||||||||
Total assets | 464.5 | 395.7 | 464.5 | 395.7 | |||||||
Additions to property, plant and equipment: | 66.3 | 62.1 | |||||||||
Dollar Tree | |||||||||||
Condensed Consolidated Income Statement Data: | |||||||||||
Net sales | 13,265 | 12,507.9 | 11,712.1 | ||||||||
Condensed Consolidated Balance Sheet Data: | |||||||||||
Goodwill | 424.9 | 423.8 | 424.9 | 423.8 | 376.5 | ||||||
Dollar Tree | Operating segments | |||||||||||
Condensed Consolidated Income Statement Data: | |||||||||||
Net sales | 13,265 | 12,507.9 | 11,712.1 | ||||||||
Gross profit | 4,543.8 | 4,342.9 | 4,137.5 | ||||||||
Operating income (loss) | 1,598 | 1,670.2 | 1,657.4 | ||||||||
Depreciation and amortization expense: | 302.3 | 277.7 | 254 | ||||||||
Condensed Consolidated Balance Sheet Data: | |||||||||||
Goodwill | 424.9 | 423.8 | 424.9 | 423.8 | |||||||
Total assets | 8,669.3 | 7,694 | 8,669.3 | 7,694 | |||||||
Additions to property, plant and equipment: | 470.4 | 547.5 | |||||||||
Family Dollar | |||||||||||
Condensed Consolidated Income Statement Data: | |||||||||||
Net sales | 12,243.4 | 11,102.9 | 11,111.2 | ||||||||
Condensed Consolidated Balance Sheet Data: | |||||||||||
Goodwill | 1,559.5 | 1,559.5 | 1,559.5 | 1,559.5 | 1,920.1 | ||||||
Family Dollar | Operating segments | |||||||||||
Condensed Consolidated Income Statement Data: | |||||||||||
Net sales | 12,243.4 | 11,102.9 | 11,111.2 | ||||||||
Gross profit | 3,243.6 | 2,697.8 | 2,810 | ||||||||
Operating income (loss) | 655.6 | (74.9) | (2,312.8) | ||||||||
Depreciation and amortization expense: | 352.6 | 337.9 | $ 345.3 | ||||||||
Condensed Consolidated Balance Sheet Data: | |||||||||||
Goodwill | 1,559.5 | 1,559.5 | 1,559.5 | 1,559.5 | |||||||
Total assets | $ 11,562.2 | $ 11,484.9 | 11,562.2 | 11,484.9 | |||||||
Additions to property, plant and equipment: | $ 362.1 | $ 425.2 |
Segments and Disaggregated Re_5
Segments and Disaggregated Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 6,767.9 | $ 6,177 | $ 6,277.6 | $ 6,286.8 | $ 6,315.3 | $ 5,746.2 | $ 5,740.6 | $ 5,808.7 | $ 25,509.3 | $ 23,610.8 | $ 22,823.3 |
Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 13,265 | 12,507.9 | 11,712.1 | ||||||||
Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 12,243.4 | $ 11,102.9 | $ 11,111.2 | ||||||||
Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | ||||||||
Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | ||||||||
Consumable | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 6,407 | $ 6,155.3 | $ 5,703.8 | ||||||||
Consumable | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 9,367.8 | $ 8,604.7 | $ 8,466.7 | ||||||||
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 48.30% | 49.20% | 48.70% | ||||||||
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 76.50% | 77.50% | 76.20% | ||||||||
Variety | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 6,194.8 | $ 5,732.1 | $ 5,457.8 | ||||||||
Variety | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 46.70% | 45.80% | 46.60% | ||||||||
Seasonal | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 663.2 | $ 620.5 | $ 550.5 | ||||||||
Seasonal | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 5.00% | 5.00% | 4.70% | ||||||||
Home products | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 1,078.1 | $ 866 | $ 911.1 | ||||||||
Home products | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 8.80% | 7.80% | 8.20% | ||||||||
Apparel and accessories | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 690.1 | $ 644 | $ 700 | ||||||||
Apparel and accessories | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 5.60% | 5.80% | 6.30% | ||||||||
Seasonal and electronics | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 1,107.4 | $ 988.2 | $ 1,033.4 | ||||||||
Seasonal and electronics | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage | 9.10% | 8.90% | 9.30% |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 30, 2021USD ($)store$ / shares | Oct. 31, 2020USD ($)store$ / shares | Aug. 01, 2020USD ($)store$ / shares | May 02, 2020USD ($)store$ / shares | Feb. 01, 2020USD ($)store$ / shares | Nov. 02, 2019USD ($)store$ / shares | Aug. 03, 2019USD ($)store$ / shares | May 04, 2019USD ($)store$ / shares | Feb. 02, 2019USD ($) | Jan. 30, 2021USD ($)store$ / shares | Feb. 01, 2020USD ($)store$ / shares | Feb. 02, 2019USD ($)$ / shares | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total net sales | $ 6,767.9 | $ 6,177 | $ 6,277.6 | $ 6,286.8 | $ 6,315.3 | $ 5,746.2 | $ 5,740.6 | $ 5,808.7 | $ 25,509.3 | $ 23,610.8 | $ 22,823.3 | |
Gross profit | 2,152.8 | 1,924.4 | 1,916.2 | 1,794.9 | 1,960.5 | 1,704.5 | 1,648.5 | 1,727.2 | 7,788.3 | 7,040.7 | 6,947.5 | |
Operating income (loss) | 681.6 | 465.5 | 374.9 | 365.9 | 249.4 | 358.4 | 268.9 | 385.5 | 1,887.9 | 1,262.2 | (939.5) | |
Net income (loss) | $ 502.8 | $ 330 | $ 261.5 | $ 247.6 | $ 123 | $ 255.8 | $ 180.3 | $ 267.9 | $ 1,341.9 | $ 827 | $ (1,590.8) | |
Diluted net income (loss) per share (usd per share) | $ / shares | $ 2.13 | $ 1.39 | $ 1.10 | $ 1.04 | $ 0.52 | $ 1.08 | $ 0.76 | $ 1.12 | $ 5.65 | $ 3.47 | $ (6.69) | |
Stores open at end of quarter (store) | store | 15,685 | 15,606 | 15,479 | 15,370 | 15,288 | 15,262 | 15,115 | 15,264 | 15,685 | 15,288 | ||
Comparable store net sales change | 4.90% | 5.10% | 7.20% | 7.00% | 0.40% | 2.50% | 2.40% | 2.20% | ||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Goodwill impairment | $ 0 | $ 313 | $ 2,727 | |||||||||
Litigation expense | $ 18 | |||||||||||
Litigation expense, effect on diluted earnings per share (in dollars per share) | $ / shares | $ 0.06 | |||||||||||
Reduction of operating loss carryforwards, effect on net income | $ 24.6 | |||||||||||
Reduction of operating loss carryforwards, effect on earnings per share (in dollars per share) | $ / shares | $ 0.10 | |||||||||||
Impairment charge for certain store assets | 4.6 | 9.1 | 13 | |||||||||
Payment of redemption premiums | 114.3 | |||||||||||
Amortizable non-cash deferred financing costs | 41.2 | |||||||||||
Family Dollar | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Goodwill impairment | $ 313 | $ 2,730 | ||||||||||
Goodwill | Family Dollar | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Reduction of diluted net income (loss) (in dollars per share) | $ / shares | $ 1.32 | |||||||||||
Family Dollar | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total net sales | $ 12,243.4 | 11,102.9 | $ 11,111.2 | |||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Goodwill impairment | $ 313 | $ 2,730 | $ 313 |