Cover Page
Cover Page - shares | 3 Months Ended | |
May 01, 2021 | May 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 1, 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 $.01 per share | |
Trading Symbol | DLTR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 231,953,872 | |
Entity Central Index Key | 0000935703 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 6,476.8 | $ 6,286.8 |
Other revenue | 2.9 | 0 |
Total revenue | 6,479.7 | 6,286.8 |
Cost of sales | 4,512.7 | 4,491.9 |
Selling, general and administrative expenses | 1,447.1 | 1,429 |
Operating income | 519.9 | 365.9 |
Interest expense, net | 33 | 40.2 |
Other expense, net | 0 | 0.5 |
Income before income taxes | 486.9 | 325.2 |
Provision for income taxes | 112.4 | 77.6 |
Net income | $ 374.5 | $ 247.6 |
Basic net income per share (USD per share) | $ 1.61 | $ 1.05 |
Diluted net income per share (USD per share) | $ 1.60 | $ 1.04 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 374.5 | $ 247.6 |
Foreign currency translation adjustments | 5 | (8) |
Total comprehensive income | $ 379.5 | $ 239.6 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 1,473.9 | $ 1,416.7 | $ 1,755.1 |
Merchandise inventories | 3,604.6 | 3,427 | 3,198.5 |
Other current assets | 226.4 | 207.1 | 211.8 |
Total current assets | 5,304.9 | 5,050.8 | 5,165.4 |
Property, plant and equipment, net of accumulated depreciation of $4,917.2, $4,765.0 and $4,333.0, respectively | 4,182.4 | 4,116.3 | 3,964.8 |
Restricted cash | 46.9 | 46.9 | 46.9 |
Operating lease right-of-use assets | 6,356.5 | 6,324.1 | 6,147 |
Goodwill | 1,985.6 | 1,984.4 | 1,981.4 |
Trade name intangible asset | 3,100 | 3,100 | 3,100 |
Deferred tax asset | 24.4 | 23.2 | 23.3 |
Other assets | 50 | 50.3 | 43 |
Total assets | 21,050.7 | 20,696 | 20,471.8 |
Current liabilities: | |||
Current portion of long-term debt | 0 | 0 | 1,050 |
Current portion of operating lease liabilities | 1,355.6 | 1,348.2 | 1,265 |
Accounts payable | 1,520.7 | 1,480.5 | 1,336.9 |
Income taxes payable | 169.5 | 86.3 | 84.2 |
Other current liabilities | 856.4 | 815.3 | 768.1 |
Total current liabilities | 3,902.2 | 3,730.3 | 4,504.2 |
Long-term debt, net, excluding current portion | 3,227.8 | 3,226.2 | 3,223.3 |
Operating lease liabilities, long-term | 5,099.2 | 5,065.5 | 4,885.2 |
Deferred income taxes, net | 1,035.7 | 1,013.5 | 1,037.7 |
Income taxes payable, long-term | 23.7 | 22.6 | 30.2 |
Other liabilities | 350.8 | 352.6 | 270.6 |
Total liabilities | 13,639.4 | 13,410.7 | 13,951.2 |
Commitments and contingencies (Note 2) | |||
Shareholders’ equity | 7,411.3 | 7,285.3 | 6,520.6 |
Total liabilities and shareholders’ equity | $ 21,050.7 | $ 20,696 | $ 20,471.8 |
Common shares outstanding (in shares) | 231.8 | 233.4 | 237.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation, property, plant and equipment | $ 4,917.2 | $ 4,765 | $ 4,333 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Feb. 01, 2020 | 236,700,000 | ||||
Beginning balance 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 | 247.6 | 247.6 | |||
Total other comprehensive income (loss) | (8) | (8) | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 0 | ||||
Issuance of stock under Employee Stock Purchase Plan | 3 | 3 | |||
Exercise of stock options (in shares) | 100,000 | ||||
Exercise of stock options | 6.7 | 6.7 | |||
Stock-based compensation, net (in shares) | 400,000 | ||||
Stock-based compensation, net | 16.5 | 16.5 | |||
Ending balance (in shares) at May. 02, 2020 | 237,200,000 | ||||
Ending balance at May. 02, 2020 | 6,520.6 | $ 2.4 | 2,480.6 | (47.8) | 4,085.4 |
Beginning balance (in shares) at Jan. 30, 2021 | 233,400,000 | ||||
Beginning balance at Jan. 30, 2021 | 7,285.3 | $ 2.3 | 2,138.5 | (35.2) | 5,179.7 |
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 374.5 | 374.5 | |||
Total other comprehensive income (loss) | 5 | 5 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 3.8 | 3.8 | |||
Exercise of stock options (in shares) | 0 | ||||
Exercise of stock options | 0.2 | 0.2 | |||
Stock-based compensation, net (in shares) | 500,000 | ||||
Stock-based compensation, net | $ (7.5) | (7.5) | |||
Repurchase of stock (in shares) | (2,150,572) | (2,200,000) | |||
Repurchase of stock | $ (250) | (250) | |||
Ending balance (in shares) at May. 01, 2021 | 231,800,000 | ||||
Ending balance at May. 01, 2021 | $ 7,411.3 | $ 2.3 | $ 1,885 | $ (30.2) | $ 5,554.2 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 374.5 | $ 247.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 172.7 | 165.5 |
Provision for deferred income taxes | 22 | 52.7 |
Stock-based compensation expense | 31.8 | 32.6 |
Amortization of debt discount and debt-issuance costs | 1.6 | 1.1 |
Other non-cash adjustments to net income | 1.2 | 2 |
Changes in operating assets and liabilities | (47.6) | 457.5 |
Net cash provided by operating activities | 556.2 | 959 |
Cash flows from investing activities: | ||
Capital expenditures | (224.9) | (235.8) |
Proceeds from governmental grant | 2.3 | 0 |
Payments for fixed asset disposition | (0.2) | (0.1) |
Net cash used in investing activities | (222.8) | (235.9) |
Cash flows from financing activities: | ||
Principal payments for long-term debt | 0 | (250) |
Proceeds from revolving credit facility | 0 | 750 |
Proceeds from stock issued pursuant to stock-based compensation plans | 4 | 9.7 |
Cash paid for taxes on exercises/vesting of stock-based compensation | (39.3) | (16.1) |
Payments for repurchase of stock | (241.3) | 0 |
Net cash provided by (used in) financing activities | (276.6) | 493.6 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.4 | (0.7) |
Net increase in cash, cash equivalents and restricted cash | 57.2 | 1,216 |
Cash, cash equivalents and restricted cash at beginning of period | 1,463.6 | 586 |
Cash, cash equivalents and restricted cash at end of period | 1,520.8 | 1,802 |
Cash paid for: | ||
Interest, net of amounts capitalized | 0.3 | 3.2 |
Income taxes | 6.3 | 2.9 |
Non-cash transactions: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 368.3 | 261 |
Accrued capital expenditures | $ 51.1 | $ 54.2 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Unless otherwise stated, references to “we,” “us,” and “our” in this quarterly report on Form 10-Q refer to Dollar Tree, Inc. and its direct and indirect subsidiaries on a consolidated basis. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended January 30, 2021. The results of operations for the 13 weeks ended May 1, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending January 29, 2022. In our opinion, the unaudited condensed consolidated financial statements included herein contain all adjustments (including those of a normal recurring nature) considered necessary for a fair presentation of our financial position as of May 1, 2021 and May 2, 2020 and the results of our operations and cash flows for the periods presented. The January 30, 2021 balance sheet information was derived from the audited consolidated financial statements as of that date. Certain prior year amounts have been reclassified for consistency with the current year presentation. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
May 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings 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. 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 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. The case has been resolved on a single plaintiff basis. 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 and April 2021, state-wide consumer class actions were filed against us by the same law firm in Georgia and Alabama, respectively, for breach of warranty based on the allegation that the coffee we sold was mislabeled because the canisters 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As required, financial assets and liabilities are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. 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 did not record any significant impairment charges during the 13 weeks ended May 1, 2021 and May 2, 2020. Fair Value of Financial Instruments The carrying amounts of Cash and cash equivalents, Restricted cash and Accounts payable as reported in the accompanying unaudited condensed 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: May 1, 2021 January 30, 2021 May 2, 2020 (in millions) Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,581.9 $ 3,232.5 $ 3,654.4 $ 3,231.5 $ 3,764.9 $ 3,530.5 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. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the calculations of basic and diluted net income per share: 13 Weeks Ended May 1, May 2, (in millions, except per share data) 2021 2020 Basic net income per share: Net income $ 374.5 $ 247.6 Weighted average number of shares outstanding 233.2 236.9 Basic net income per share $ 1.61 $ 1.05 Diluted net income per share: Net income $ 374.5 $ 247.6 Weighted average number of shares outstanding 233.2 236.9 Dilutive effect of stock options and restricted stock (as 1.2 0.5 Weighted average number of shares and dilutive potential 234.4 237.4 Diluted net income per share $ 1.60 $ 1.04 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation For a discussion of our stock-based compensation plans, refer to “Note 11 - Stock-Based Compensation Plans” of our Annual Report on Form 10-K for the year ended January 30, 2021. Stock-based compensation expense was $31.8 million and $32.6 million during the 13 weeks ended May 1, 2021 and May 2, 2020, respectively. 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 May 1, 2021 and changes during the 13 weeks then ended: Number of Shares Weighted Average Nonvested at January 30, 2021 1,265,216 $ 83.16 Granted 625,097 109.04 Vested (574,719) 87.08 Forfeited (31,160) 90.20 Nonvested at May 1, 2021 1,284,434 $ 93.83 PSUs The following table summarizes the status of PSUs as of May 1, 2021 and changes during the 13 weeks then ended: Number of Shares Weighted Average Nonvested at January 30, 2021 423,272 $ 82.67 Granted 422,524 95.04 Vested (182,812) 77.40 Forfeited (40,300) 94.90 Nonvested at May 1, 2021 622,684 $ 91.82 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 01, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ EquityWe repurchased 2,150,572 shares of common stock on the open market for approximately $250.0 million during the 13 weeks ended May 1, 2021. Approximately $8.7 million in share repurchases had not settled as of May 1, 2021. This amount was accrued and is reflected in “Other current liabilities” within the accompanying unaudited condensed consolidated balance sheet as of May 1, 2021. We did not repurchase any shares of common stock in the 13 weeks ended May 2, 2020. As of May 1, 2021, we have $2.15 billion remaining under Board repurchase authorization. |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 3 Months Ended |
May 01, 2021 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | Segments and Disaggregated Revenue We operate a chain of more than 15,700 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. The Family Dollar segment Operating income includes advertising revenue, which is a component of Other revenue in the accompanying unaudited condensed consolidated income statements. 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 center and the results of operations for our Summit Pointe property in Chesapeake, Virginia. Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income before income taxes, is as follows: 13 Weeks Ended May 1, May 2, (in millions) 2021 2020 Condensed Consolidated Income Statement Data: Net sales: Dollar Tree $ 3,321.3 $ 3,077.5 Family Dollar 3,155.5 3,209.3 Consolidated Net sales $ 6,476.8 $ 6,286.8 13 Weeks Ended May 1, May 2, (in millions) 2021 2020 Condensed Consolidated Income Statement Data: Gross profit: Dollar Tree $ 1,118.3 $ 980.7 Family Dollar 845.8 814.2 Consolidated Gross profit $ 1,964.1 $ 1,794.9 Operating income (loss): Dollar Tree $ 400.3 $ 282.0 Family Dollar 211.4 175.5 Corporate, support and Other (91.8) (91.6) Consolidated Operating income 519.9 365.9 Interest expense, net 33.0 40.2 Other expense, net — 0.5 Income before income taxes $ 486.9 $ 325.2 As of May 1, January 30, May 2, (in millions) 2021 2021 2020 Condensed Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 426.1 $ 424.9 $ 421.9 Family Dollar 1,559.5 1,559.5 1,559.5 Consolidated Goodwill $ 1,985.6 $ 1,984.4 $ 1,981.4 Total assets: Dollar Tree $ 8,963.8 $ 8,669.3 $ 8,504.7 Family Dollar 11,611.0 11,562.2 11,540.7 Corporate, support and Other 475.9 464.5 426.4 Consolidated Total assets $ 21,050.7 $ 20,696.0 $ 20,471.8 Disaggregated Revenue The following table summarizes net sales by merchandise category for our segments: 13 Weeks Ended May 1, May 2, (in millions) 2021 2020 Dollar Tree segment net sales by Consumable $ 1,584.3 47.7 % $ 1,686.5 54.8 % Variety 1,627.4 49.0 % 1,311.0 42.6 % Seasonal 109.6 3.3 % 80.0 2.6 % Total Dollar Tree segment net sales $ 3,321.3 100.0 % $ 3,077.5 100.0 % Family Dollar segment net sales by Consumable $ 2,373.5 75.2 % $ 2,532.1 78.9 % Home products 301.0 9.5 % 272.8 8.5 % Apparel and accessories 205.2 6.5 % 154.1 4.8 % Seasonal and electronics 275.8 8.8 % 250.3 7.8 % Total Family Dollar segment net sales $ 3,155.5 100.0 % $ 3,209.3 100.0 % |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
May 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Legal Proceedings | 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 01, 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: May 1, 2021 January 30, 2021 May 2, 2020 (in millions) Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,581.9 $ 3,232.5 $ 3,654.4 $ 3,231.5 $ 3,764.9 $ 3,530.5 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per share | The following table sets forth the calculations of basic and diluted net income per share: 13 Weeks Ended May 1, May 2, (in millions, except per share data) 2021 2020 Basic net income per share: Net income $ 374.5 $ 247.6 Weighted average number of shares outstanding 233.2 236.9 Basic net income per share $ 1.61 $ 1.05 Diluted net income per share: Net income $ 374.5 $ 247.6 Weighted average number of shares outstanding 233.2 236.9 Dilutive effect of stock options and restricted stock (as 1.2 0.5 Weighted average number of shares and dilutive potential 234.4 237.4 Diluted net income per share $ 1.60 $ 1.04 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSUs | The following table summarizes the status of service-based RSUs as of May 1, 2021 and changes during the 13 weeks then ended: Number of Shares Weighted Average Nonvested at January 30, 2021 1,265,216 $ 83.16 Granted 625,097 109.04 Vested (574,719) 87.08 Forfeited (31,160) 90.20 Nonvested at May 1, 2021 1,284,434 $ 93.83 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the status of PSUs as of May 1, 2021 and changes during the 13 weeks then ended: Number of Shares Weighted Average Nonvested at January 30, 2021 423,272 $ 82.67 Granted 422,524 95.04 Vested (182,812) 77.40 Forfeited (40,300) 94.90 Nonvested at May 1, 2021 622,684 $ 91.82 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 3 Months Ended |
May 01, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income before income taxes, is as follows: 13 Weeks Ended May 1, May 2, (in millions) 2021 2020 Condensed Consolidated Income Statement Data: Net sales: Dollar Tree $ 3,321.3 $ 3,077.5 Family Dollar 3,155.5 3,209.3 Consolidated Net sales $ 6,476.8 $ 6,286.8 13 Weeks Ended May 1, May 2, (in millions) 2021 2020 Condensed Consolidated Income Statement Data: Gross profit: Dollar Tree $ 1,118.3 $ 980.7 Family Dollar 845.8 814.2 Consolidated Gross profit $ 1,964.1 $ 1,794.9 Operating income (loss): Dollar Tree $ 400.3 $ 282.0 Family Dollar 211.4 175.5 Corporate, support and Other (91.8) (91.6) Consolidated Operating income 519.9 365.9 Interest expense, net 33.0 40.2 Other expense, net — 0.5 Income before income taxes $ 486.9 $ 325.2 As of May 1, January 30, May 2, (in millions) 2021 2021 2020 Condensed Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 426.1 $ 424.9 $ 421.9 Family Dollar 1,559.5 1,559.5 1,559.5 Consolidated Goodwill $ 1,985.6 $ 1,984.4 $ 1,981.4 Total assets: Dollar Tree $ 8,963.8 $ 8,669.3 $ 8,504.7 Family Dollar 11,611.0 11,562.2 11,540.7 Corporate, support and Other 475.9 464.5 426.4 Consolidated Total assets $ 21,050.7 $ 20,696.0 $ 20,471.8 |
Disaggregation of Revenue | The following table summarizes net sales by merchandise category for our segments: 13 Weeks Ended May 1, May 2, (in millions) 2021 2020 Dollar Tree segment net sales by Consumable $ 1,584.3 47.7 % $ 1,686.5 54.8 % Variety 1,627.4 49.0 % 1,311.0 42.6 % Seasonal 109.6 3.3 % 80.0 2.6 % Total Dollar Tree segment net sales $ 3,321.3 100.0 % $ 3,077.5 100.0 % Family Dollar segment net sales by Consumable $ 2,373.5 75.2 % $ 2,532.1 78.9 % Home products 301.0 9.5 % 272.8 8.5 % Apparel and accessories 205.2 6.5 % 154.1 4.8 % Seasonal and electronics 275.8 8.8 % 250.3 7.8 % Total Family Dollar segment net sales $ 3,155.5 100.0 % $ 3,209.3 100.0 % |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - Fair value, inputs, level 1 - Senior Notes - USD ($) $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term borrowings | $ 3,581.9 | $ 3,654.4 | $ 3,764.9 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term borrowings | $ 3,232.5 | $ 3,231.5 | $ 3,530.5 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Basic net income per share: | ||
Net income | $ 374.5 | $ 247.6 |
Weighted average number of shares outstanding (in shares) | 233.2 | 236.9 |
Basic net income per share (USD per share) | $ 1.61 | $ 1.05 |
Diluted net income per share: | ||
Net income | $ 374.5 | $ 247.6 |
Weighted average number of shares outstanding (in shares) | 233.2 | 236.9 |
Dilutive effect of stock options and restricted stock (as determined by applying the treasury stock method) (in shares) | 1.2 | 0.5 |
Weighted average number of shares and dilutive potential shares outstanding (in shares) | 234.4 | 237.4 |
Diluted net income per share (USD per share) | $ 1.60 | $ 1.04 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 31.8 | $ 32.6 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense, period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Operating income | $ 519.9 | $ 365.9 |
Restricted Stock Units (RSUs) | ||
Number of Shares | ||
Nonvested, beginning balance (in shares) | 1,265,216 | |
Granted (in shares) | 625,097 | |
Vested (in shares) | (574,719) | |
Forfeited (in shares) | (31,160) | |
Nonvested, Ending balance (in shares) | 1,284,434 | |
Weighted Average Grant Date Fair Value | ||
Nonvested, beginning balance (USD per share) | $ 83.16 | |
Granted (USD per share) | 109.04 | |
Vested (USD per share) | 87.08 | |
Forfeited (USD per share) | 90.20 | |
Nonvested, ending balance (USD per share) | $ 93.83 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary of PSUs (Details) - Performance Shares [Member] | 3 Months Ended |
May 01, 2021$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 423,272 |
Granted (in shares) | shares | 422,524 |
Vested (in shares) | shares | (182,812) |
Forfeited (in shares) | shares | (40,300) |
Nonvested, Ending balance (in shares) | shares | 622,684 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (USD per share) | $ / shares | $ 82.67 |
Granted (USD per share) | $ / shares | 95.04 |
Vested (USD per share) | $ / shares | 77.40 |
Forfeited (USD per share) | $ / shares | 94.90 |
Nonvested, ending balance (USD per share) | $ / shares | $ 91.82 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ in Millions | 3 Months Ended |
May 01, 2021USD ($)shares | |
Equity [Abstract] | |
Repurchase of stock (in shares) | shares | 2,150,572 |
Repurchase of stock | $ 250 |
Repurchase of stock, shares not settled (in shares) | 8.7 |
Remaining repurchase authorization | $ 2,150 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue - Narrative (Details) | 3 Months Ended |
May 01, 2021USD ($)segmentprovincedistribution_centerstatestore | |
Segment Reporting Information [Line Items] | |
Number of retail discount stores | store | 15,700 |
Number of states/provinces the Company operates in | state | 48 |
Number of reporting business segments | segment | 2 |
Dollar Tree | |
Segment Reporting Information [Line Items] | |
Merchandise fixed price | $ | $ 1 |
Family Dollar | |
Segment Reporting Information [Line Items] | |
Number of distribution centers | 11 |
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 | 2 |
United States | Dollar Tree | |
Segment Reporting Information [Line Items] | |
Number of distribution centers | 15 |
Segments and Disaggregated Re_4
Segments and Disaggregated Revenue - Information For Segments and Corporate and Support (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2021 | May 02, 2020 | Jan. 30, 2021 | |
Condensed Consolidated Income Statement Data: | |||
Net sales | $ 6,476.8 | $ 6,286.8 | |
Gross profit | 1,964.1 | 1,794.9 | |
Operating income | 519.9 | 365.9 | |
Interest expense, net | 33 | 40.2 | |
Other expense, net | 0 | 0.5 | |
Income before income taxes | 486.9 | 325.2 | |
Condensed Consolidated Balance Sheet Data: | |||
Consolidated Goodwill | 1,985.6 | 1,981.4 | $ 1,984.4 |
Consolidated Total assets | 21,050.7 | 20,471.8 | 20,696 |
Corporate, support and Other | |||
Condensed Consolidated Income Statement Data: | |||
Operating income | (91.8) | (91.6) | |
Condensed Consolidated Balance Sheet Data: | |||
Consolidated Total assets | 475.9 | 426.4 | 464.5 |
Dollar Tree | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 3,321.3 | 3,077.5 | |
Dollar Tree | Operating segments | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 3,321.3 | 3,077.5 | |
Gross profit | 1,118.3 | 980.7 | |
Operating income | 400.3 | 282 | |
Condensed Consolidated Balance Sheet Data: | |||
Consolidated Goodwill | 426.1 | 421.9 | 424.9 |
Consolidated Total assets | 8,963.8 | 8,504.7 | 8,669.3 |
Family Dollar | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 3,155.5 | 3,209.3 | |
Family Dollar | Operating segments | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 3,155.5 | 3,209.3 | |
Gross profit | 845.8 | 814.2 | |
Operating income | 211.4 | 175.5 | |
Condensed Consolidated Balance Sheet Data: | |||
Consolidated Goodwill | 1,559.5 | 1,559.5 | 1,559.5 |
Consolidated Total assets | $ 11,611 | $ 11,540.7 | $ 11,562.2 |
Segments and Disaggregated Re_5
Segments and Disaggregated Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 6,476.8 | $ 6,286.8 |
Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,321.3 | 3,077.5 |
Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,155.5 | $ 3,209.3 |
Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Consumable | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,584.3 | $ 1,686.5 |
Consumable | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,373.5 | $ 2,532.1 |
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 47.70% | 54.80% |
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 75.20% | 78.90% |
Variety | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,627.4 | $ 1,311 |
Variety | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 49.00% | 42.60% |
Seasonal | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 109.6 | $ 80 |
Seasonal | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 3.30% | 2.60% |
Home Products | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 301 | $ 272.8 |
Home Products | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 9.50% | 8.50% |
Apparel And Accessories | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 205.2 | $ 154.1 |
Apparel And Accessories | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 6.50% | 4.80% |
Seasonal And Electronics | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 275.8 | $ 250.3 |
Seasonal And Electronics | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 8.80% | 7.80% |