Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Mar. 18, 2024 | Jul. 29, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 03, 2024 | ||
Current Fiscal Year End Date | --02-03 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 31,570,609,673 | ||
Entity Common Stock, Shares Outstanding | 217,983,018 | ||
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 2024 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended February 3, 2024. | ||
Entity Central Index Key | 0000935703 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Feb. 03, 2024 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Virginia Beach, Virginia |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 30,581.6 | $ 28,318.2 | $ 26,309.8 |
Other revenue | 22.2 | 13.5 | 11.4 |
Total revenue | 30,603.8 | 28,331.7 | 26,321.2 |
Cost of sales | 21,272 | 19,396.3 | 18,583.9 |
Selling, general and administrative expenses, excluding Goodwill impairment | 9,144.6 | 6,699.1 | 5,925.9 |
Goodwill impairment | 1,069 | 0 | 0 |
Selling, general and administrative expenses | 10,213.6 | 6,699.1 | 5,925.9 |
Operating income (loss) | (881.8) | 2,236.3 | 1,811.4 |
Interest expense, net | 106.8 | 125.3 | 178.9 |
Other expense, net | 0.1 | 0.4 | 0.3 |
Income (loss) before income taxes | (988.7) | 2,110.6 | 1,632.2 |
Provision for income taxes | 9.7 | 495.2 | 304.3 |
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Net income per share: | |||
Basic net income per share (usd per share) | $ (4.55) | $ 7.24 | $ 5.83 |
Diluted net income per share (usd per share) | $ (4.55) | $ 7.21 | $ 5.80 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Foreign currency translation adjustments | (2.4) | (6) | 0 |
Total comprehensive income (loss) | $ (1,000.8) | $ 1,609.4 | $ 1,327.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 684.9 | $ 642.8 |
Merchandise inventories | 5,112.8 | 5,449.3 |
Other current assets | 335 | 275 |
Total current assets | 6,132.7 | 6,367.1 |
Property, plant and equipment, net of accumulated depreciation of $6,631.4 and $6,025.4, respectively | 6,144.1 | 4,972.2 |
Restricted cash | 72.3 | 68.5 |
Operating lease right-of-use assets | 6,488.3 | 6,458 |
Goodwill | 913.8 | 1,983.1 |
Trade name intangible asset | 2,150 | 3,100 |
Deferred tax asset | 9 | 15 |
Other assets | 113.3 | 58.2 |
Total assets | 22,023.5 | 23,022.1 |
Current liabilities: | ||
Current portion of operating lease liabilities | 1,513 | 1,449.6 |
Accounts payable | 2,063.8 | 1,899.8 |
Income taxes payable | 52.7 | 58.1 |
Other current liabilities | 1,067.2 | 817.7 |
Total current liabilities | 4,696.7 | 4,225.2 |
Long-term debt, net | 3,426.3 | 3,421.6 |
Operating lease liabilities, long-term | 5,447.6 | 5,255.3 |
Deferred income taxes, net | 841.1 | 1,105.7 |
Income taxes payable, long-term | 22 | 17.4 |
Other liabilities | 276.7 | 245.4 |
Total liabilities | 14,710.4 | 14,270.6 |
Commitments and contingencies (Note 5) | ||
Shareholders’ equity: | ||
Common stock, par value $0.01; 600,000,000 shares authorized, 217,907,206 and 221,222,984 shares issued and outstanding at February 3, 2024 and January 28, 2023, respectively | 2.2 | 2.2 |
Additional paid-in capital | 229.9 | 667.5 |
Accumulated other comprehensive loss | (43.6) | (41.2) |
Retained earnings | 7,124.6 | 8,123 |
Total shareholders’ equity | 7,313.1 | 8,751.5 |
Total liabilities and shareholders’ equity | $ 22,023.5 | $ 23,022.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, property, plant and equipment | $ 6,631.4 | $ 6,025.4 |
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) | 217,907,206 | 221,222,984 |
Common stock, shares outstanding (in shares) | 217,907,206 | 221,222,984 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance at Beginning of Year (in shares) at Jan. 30, 2021 | 233,400,000 | ||||
Balance at Beginning of Year 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 (loss) | 1,327.9 | 1,327.9 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 10.4 | 10.4 | |||
Exercise of stock options (in shares) | 100,000 | ||||
Exercise of stock options | 7.4 | 7.4 | |||
Stock-based compensation, net (in shares) | 700,000 | ||||
Stock-based compensation, net | 37.5 | 37.5 | |||
Repurchase of stock (in shares) | (9,200,000) | ||||
Repurchase of stock | (950) | $ (0.1) | (949.9) | ||
Balance at End of Year (in shares) at Jan. 29, 2022 | 225,100,000 | ||||
Balance at End of Year at Jan. 29, 2022 | 7,718.5 | $ 2.2 | 1,243.9 | (35.2) | 6,507.6 |
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 1,615.4 | 1,615.4 | |||
Total other comprehensive income (loss) | (6) | (6) | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 9.3 | 9.3 | |||
Stock-based compensation, net (in shares) | 600,000 | ||||
Stock-based compensation, net | 61.8 | 61.8 | |||
Repurchase of stock (in shares) | (4,600,000) | ||||
Repurchase of stock | (647.5) | (647.5) | |||
Balance at End of Year (in shares) at Jan. 28, 2023 | 221,200,000 | ||||
Balance at End of Year at Jan. 28, 2023 | 8,751.5 | $ 2.2 | 667.5 | (41.2) | 8,123 |
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (998.4) | (998.4) | |||
Total other comprehensive income (loss) | (2.4) | (2.4) | |||
Issuance of stock under Employee Stock Purchase Plan | $ 9.9 | 9.9 | |||
Exercise of stock options (in shares) | 1,207 | ||||
Exercise of stock options | $ 0.1 | 0.1 | |||
Stock-based compensation, net (in shares) | 600,000 | ||||
Stock-based compensation, net | 56.7 | 56.7 | |||
Repurchase of stock (in shares) | (3,900,000) | ||||
Repurchase of stock | (500) | (500) | |||
Excise tax on repurchase of stock | (4.3) | ||||
Balance at End of Year (in shares) at Feb. 03, 2024 | 217,900,000 | ||||
Balance at End of Year at Feb. 03, 2024 | $ 7,313.1 | $ 2.2 | $ 229.9 | $ (43.6) | $ 7,124.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Goodwill impairment | 1,069 | 0 | 0 |
Depreciation and amortization | 841 | 767.9 | 716 |
Provision for deferred income taxes | (258.6) | 123 | (23.2) |
Stock-based compensation expense | 96.7 | 110.4 | 79.9 |
Impairments, excluding goodwill | 1,461.5 | 40 | 4.4 |
Other non-cash adjustments to net income (loss) | 20.7 | 23.7 | 15.7 |
Loss on debt extinguishment | 0 | 0 | 43.8 |
Changes in operating assets and liabilities: | |||
Merchandise inventories | 335.6 | (1,085.4) | (940.4) |
Other current assets | (60.1) | (17.9) | (49.9) |
Other assets | (55.7) | (6.8) | (2.6) |
Accounts payable | 164.4 | 16.8 | 403.8 |
Income taxes payable | (5.5) | (24.5) | (3.7) |
Other current liabilities | 193 | (2.2) | (36.5) |
Other liabilities | 35.9 | (14.4) | (98.2) |
Operating lease right-of-use assets and liabilities, net | (155) | 68.8 | (5.5) |
Net cash provided by operating activities | 2,684.5 | 1,614.8 | 1,431.5 |
Cash flows from investing activities: | |||
Capital expenditures | (2,101.3) | (1,248.8) | (1,021.2) |
Proceeds from governmental grant | 0 | 0 | 2.9 |
Payments for fixed asset disposition | (6.3) | (5) | (1.6) |
Net cash used in investing activities | (2,107.6) | (1,253.8) | (1,019.9) |
Cash flows from financing activities: | |||
Proceeds from long-term debt, net of discount | 0 | 0 | 1,197.4 |
Principal payments for long-term debt | 0 | 0 | (1,000) |
Debt-issuance and debt extinguishment costs | 0 | 0 | (59.3) |
Proceeds from revolving credit facility | 0 | 555 | 0 |
Repayments of revolving credit facility | 0 | (555) | 0 |
Proceeds from commercial paper notes | 1,067.9 | 0 | 0 |
Repayments of commercial paper notes | (1,067.9) | 0 | 0 |
Proceeds from stock issued pursuant to stock-based compensation plans | 10 | 9.3 | 17.8 |
Cash paid for taxes on exercises/vesting of stock-based compensation | (40) | (48.6) | (42.4) |
Payments for repurchase of stock | (500) | (647.5) | (950) |
Net cash used in financing activities | (530) | (686.8) | (836.5) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | (1.2) | (0.4) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 45.9 | (327) | (425.3) |
Cash, cash equivalents and restricted cash at beginning of year | 711.3 | 1,038.3 | 1,463.6 |
Cash, cash equivalents and restricted cash at end of year | 757.2 | 711.3 | 1,038.3 |
Cash paid for: | |||
Interest, net of amounts capitalized | 131.4 | 132.2 | 176.1 |
Income taxes | 274 | 401.3 | 363.4 |
Non-cash transactions: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,893.1 | 1,538.3 | 1,495.3 |
Accrued capital expenditures | $ 138.8 | $ 86.6 | $ 68.3 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Feb. 03, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation 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. Basis of Presentation The accompanying consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly-owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation. All amounts stated herein are in U.S. Dollars. Fiscal Year |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. 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 February 3, 2024 and January 28, 2023 includes $304.2 million and $317.2 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. In accordance with Accounting Standards Codification (“ASC”) Topic 305 “Cash and Cash Equivalents,” 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 In accordance with ASC Topic 330 “Inventory,” 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 $299.8 million and $298.6 million at February 3, 2024 and January 28, 2023, respectively. Property, Plant and Equipment In accordance with ASC Topic 360 “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 Building improvements 20 years Furniture, fixtures and equipment, software 3 to 15 years Leasehold improvements Shorter of remaining lease term or related asset life Depreciation is included in “Selling, general and administrative expenses” in the accompanying Consolidated Statements of Operations, with the exception of depreciation related to our merchandising and distribution-related assets which are included in “Cost of sales” in the accompanying Consolidated Statements of Operations. Capitalized Interest We capitalize interest on borrowed funds during the construction of certain property and equipment based on our weighted average borrowing rates in place while the projects are in progress. We capitalized $5.9 million, $3.8 million and $1.1 million of interest costs in the years ended February 3, 2024, January 28, 2023 and January 29, 2022, 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 auto. 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, historical loss development factors, and other actuarial assumptions. Our self-insurance liabilities associated with workers’ compensation, general liability and auto are recorded within “Other current liabilities” and “Other liabilities” in the accompanying Consolidated Balance Sheets and amounted to $363.5 million and $318.2 million at February 3, 2024 and January 28, 2023, respectively. 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 auto 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. These amounts are reflected in “Restricted cash” in the accompanying Consolidated Balance Sheets and amounted to $72.3 million and $68.5 million at February 3, 2024 and January 28, 2023, respectively. Lease Accounting Our lease portfolio primarily consists of leases for our retail store locations, vehicles and trailers, as well as distribution center space and equipment. In accordance with ASC Topic 842 “Leases,” 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, we determine the initial classification and measurement of the right-of-use (“ROU”) assets and lease liabilities at the lease commencement date and thereafter if modified. ROU assets represent our right to control the underlying assets under lease, over the contractual term. ROU assets and lease liabilities are recognized on the Consolidated Balance Sheets based on the present value of future minimum lease payments to be made over the lease term. 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 ROU asset is reduced by lease incentives, which has the effect of lowering the operating lease expense. Operating lease ROU 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 an ROU 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 ROU 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 ROU 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. Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of In accordance with ASC Topic 360, 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 2023, fiscal 2022 and fiscal 2021, we recorded charges of $511.5 million, $39.9 million and $4.4 million, respectively, to write down certain assets, including $358.7 million, $20.1 million and $3.9 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively, to write down operating lease ROU assets. The fiscal 2023 impairment charges include $152.2 million of store asset impairment charges and $351.7 million of operating lease ROU asset impairment charges recorded in connection with the store portfolio optimization review as discussed further in Note 16 . Fiscal 2022 includes $14.0 million for West Memphis distribution center asset impairments. These charges are recorded as a component of “ Selling, general and administrative expenses 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 are 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. For both goodwill and nonamortizing intangible assets, we have the option to initially perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. Alternatively, we may bypass the qualitative assessment in any given year and proceed directly to performing the quantitative impairment test. We perform our annual impairment testing of goodwill and nonamortizing intangible assets during the fourth quarter of each year. Our reporting units are determined in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” When a quantitative impairment test is performed for the Family Dollar trade name, we compare the 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 evaluate the Family Dollar goodwill for impairment. When a quantitative test is performed, we 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. During the fourth quarter of fiscal 2023, we recorded a non-cash goodwill impairment charge of $1,069.0 million and a non-cash trade name impairment charge of $950.0 million, both related to the Family Dollar reporting unit. Refer to Note 15 for additional information on the results of the trade name and goodwill impairment tests. Revenue Recognition We recognize revenue in accordance with ASC Topic 606 "Revenue from Contracts with Customers." Net sales consist of the net sales of merchandise in our stores. Revenue transactions associated with the sale of merchandise comprise a single performance obligation, which consists of the sale of products to customers. Revenue is recognized when we satisfy our performance obligations by transferring control of promised products to our customers, which occurs at a point in time. Sales taxes imposed on our revenues from product sales are presented on a net basis in the accompanying Consolidated Statements of Operations. Gift cards that we issue to customers are recorded as contract liabilities until they are redeemed, at which point revenue is recognized. We record reductions to revenue for discounts and estimated customer returns. Historically, our customer returns have not been material. 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. In accordance with ASC Subtopic 705-20 “Accounting for Consideration Received from a Vendor,” 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 capitalize certain internal labor costs related to new, expanded, renovated, relocated and re-bannered stores after the project becomes probable and only when the costs are directly attributable to the preparation of the store-related assets for their intended use. We expense all other pre-opening costs related to our stores and 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 cooperative advertising recoveries from vendors, were $109.6 million, $99.5 million and $93.9 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Income Taxes In accordance with ASC Topic 740 “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. Deferred tax assets are reduced by valuation allowances when necessary. Assessing whether deferred tax assets are realizable requires significant judgment. We consider all available positive and negative evidence, including historical operating performance and expectations of future operating performance. The ultimate realization of deferred tax assets is often dependent upon future taxable income and therefore can be uncertain. To the extent we believe it is more likely than not that all or some portion of the asset will not be realized, valuation allowances are established against our deferred tax assets, which increase income tax expense in the period when such a determination is made. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions or obtaining new information on particular tax positions may cause a change to the effective tax rate. We have made the policy election to record any liability associated with Global Intangible Low Tax Income ("GILTI") in the period in which it is incurred. 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 account for stock-based compensation in accordance with ASC Topic 718 “Compensation - Stock Compensation,” which requires all stock-based compensation awards granted to be measured at fair value and recognized as an expense in the financial statements over the service period. In addition, this guidance requires that excess tax benefits related to stock-based compensation awards be reflected as operating cash flows. We use the Black-Scholes option pricing model to estimate the fair market value of stock option awards and grant date fair value for restricted stock units. We use the "simplified method" to estimate the expected life of options, as permitted by accounting guidance. The "simplified method" calculates the expected life of a stock option equal to the time from grant to the midpoint between the vesting date and contractual term, taking into account all vesting tranches. The risk-free interest rate is based on the yield for the U.S. Treasury bill with a maturity equal to the expected life of the stock option. Expected volatility is based on our historical average. Compensation expense is recognized net of forfeitures on a straight-line basis over the total vesting period, which is the implied requisite service period, or a shorter period based on the retirement eligibility of the grantee. Compensation expense for performance-based awards is recorded over the implied requisite service period when achievement of the performance target is deemed probable. We issue new shares upon exercise of stock options and upon vesting of restricted stock units. Total stock-based compensation expense for fiscal 2023, fiscal 2022 and fiscal 2021 was $96.7 million, $110.4 million and $79.9 million, respectively. Refer to Note 10 for further details on stock-based compensation. Net Income (Loss) Per Share In accordance with ASC Topic 260 “Earnings 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 restricted stock units after applying the treasury stock method. Foreign Currency The functional currencies of certain of our international subsidiaries are the local currencies of the countries in which the subsidiaries are located. In accordance with ASC Topic 830 “Foreign Currency Matters,” 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. Capital accounts are translated at historical foreign currency exchange rates. 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. Adjustments that arise from foreign currency exchange rate changes on transactions, primarily driven by intercompany transactions, denominated in a currency other than the functional currency are included in “Other expense, net” in the accompanying Consolidated Statements of Operations. These adjustments have not historically been significant. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 "Liabilities - Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") which requires entities to disclose the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about their obligations under these programs, including a rollforward of those obligations. We adopted ASU 2022-04 for fiscal 2023 on a retrospective basis, except for the amendments relating to the rollforward requirement, which are required to be adopted for fiscal 2024 on a prospective basis. The adoption did not have a material impact on our consolidated financial statements. Refer to Note 14 for a discussion of our supply chain finance program. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which requires disclosure of incremental segment information on an annual and interim basis, including enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. ASU 2023-07 also requires entities to disclose the title and position of the CODM and explain how the CODM uses the reported measures of segment profit or loss in assessing performance and allocating resources. Further, it requires that all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 be provided in interim periods. ASU 2023-07 is effective on a retrospective basis for annual periods beginning in fiscal 2024 and for interim periods beginning in fiscal 2025. We are currently evaluating the impact of this standard to our consolidated financial statements. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024 and January 28, 2023 consists of the following: (in millions) February 3, 2024 January 28, 2023 Land $ 247.9 $ 242.6 Buildings 1,796.7 1,631.6 Leasehold improvements 3,646.9 3,227.9 Furniture, fixtures and equipment 5,899.2 5,261.7 Construction in progress 1,184.8 633.8 Total property, plant and equipment 12,775.5 10,997.6 Less: accumulated depreciation 6,631.4 6,025.4 Total property, plant and equipment, net $ 6,144.1 $ 4,972.2 Depreciation expense was $819.1 million, $737.4 million, and $672.0 million for the years ended February 3, 2024, January 28, 2023, and January 29, 2022, respectively. Other Current Liabilities Other current liabilities as of February 3, 2024 and January 28, 2023 consist of the following: (in millions) February 3, 2024 January 28, 2023 Taxes (other than income taxes) $ 292.3 $ 253.7 Compensation and benefits 247.3 143.9 Insurance 143.4 131.1 Other 384.2 289.0 Total other current liabilities $ 1,067.2 $ 817.7 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Current taxes: Federal $ 222.2 $ 322.0 $ 271.1 State 46.1 50.2 56.3 Foreign — 0.1 0.1 Total current taxes 268.3 372.3 327.5 Deferred taxes: Federal (225.3) 88.1 50.3 State (39.2) 30.3 (76.5) Foreign 5.9 4.5 3.0 Total deferred taxes (258.6) 122.9 (23.2) Provision for income taxes $ 9.7 $ 495.2 $ 304.3 On August 16, 2022, the Inflation Reduction Act of 2022 (“2022 Tax Act”) was enacted into law. A key provision of the 2022 Tax Act is a 15% minimum tax on adjusted financial statement income. We do not expect any impact to our effective tax rate as a result of the new 15% minimum tax under the 2022 Tax Act. A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows: Year Ended February 3, 2024 January 28, 2023 January 29, 2022 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: Goodwill impairment (22.7) — — State and local income taxes, net of federal income tax benefit (1.0) 3.7 3.7 Non-deductible expenses (1.0) 0.1 0.1 Work Opportunity Tax Credit 3.0 (1.4) (1.8) Deferred tax rate change — 0.7 (3.8) Other, net (0.3) (0.6) (0.6) Effective tax rate (1.0) % 23.5 % 18.6 % Goodwill Impairment In the fourth quarter of fiscal 2023, we recorded a goodwill impairment charge of $1,069.0 million related to Family Dollar goodwill, as further discussed in Note 15 . The purchase of Family Dollar was a stock acquisition, and carryover basis applied for tax purposes. The goodwill impairment charge is not deductible for federal or state tax purposes and therefore there is no tax benefit related to the impairment. Reinvestment of Unremitted Earnings Substantially all of our current year foreign cash earnings in excess of working capital and cash needed for strategic investments are not intended to be indefinitely reinvested offshore. Therefore, the tax effects of repatriation for applicable state taxes and foreign withholding taxes of such cash earnings have been provided for in the accompanying Consolidated Statements of Operations. We have the intent and ability to reinvest substantially all of the non-cash unremitted earnings of our non-U.S. subsidiaries indefinitely. Accordingly, no provision for state taxes or foreign withholding taxes was recorded on these unremitted earnings in the accompanying Consolidated Statements of Operations. 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) February 3, January 28, Deferred tax assets: Operating lease liabilities $ 1,800.4 $ 1,703.5 Net operating losses, interest expense and credit carryforwards 72.8 69.3 Accrued expenses 35.7 31.0 Accrued compensation expense 39.3 33.9 State tax election 13.1 14.3 Other 4.7 2.5 Total deferred tax assets 1,966.0 1,854.5 Valuation allowance (17.3) (4.0) Deferred tax assets, net 1,948.7 1,850.5 Deferred tax liabilities: Operating lease ROU assets (1,639.7) (1,630.9) Other intangibles (529.1) (760.4) Property and equipment (571.8) (509.2) Prepaids (35.8) (25.9) Inventory (4.4) (14.8) Total deferred tax liabilities (2,780.8) (2,941.2) Deferred income taxes, net $ (832.1) $ (1,090.7) At February 3, 2024, we had certain state tax credit carryforwards, net operating loss carryforwards and capital loss carryforwards totaling $72.8 million. Some of these carryforwards will expire, if not utilized, beginning in fiscal 2024 through fiscal 2043 . A valuation allowance of $17.3 million, net of federal tax benefits, has been provided principally for certain state credit carryforwards and net operating loss carryforwards. 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 2023 and we have been accepted into the program for fiscal 2024. 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 2021 tax year. In fiscal 2020, we participated in the CAP under the IRS’s bridge year program and as a result, the IRS will not be completing an audit on the fiscal 2020 tax return at this time. Several states completed their examinations during fiscal 2023. In general, fiscal 2020 and forward are within the statute of limitations for state tax purposes. The statute of limitations is still open prior to fiscal 2020 for some states. The balance for unrecognized tax benefits at February 3, 2024 was $22.0 million. The total amount of unrecognized tax benefits at February 3, 2024 that, if recognized, would affect the effective tax rate was $17.4 million (net of the federal tax benefit). The following is a reconciliation of our total gross unrecognized tax benefits: (in millions) February 3, 2024 January 28, 2023 Beginning Balance $ 17.4 $ 20.9 Additions for tax positions of prior years 5.6 2.3 Additions, based on tax positions related to current year 2.3 4.0 Settlements (0.3) (0.1) Lapses in statutes of limitation (3.0) (9.7) Ending balance $ 22.0 $ 17.4 It is possible that 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 February 3, 2024, we have recorded a liability for potential interest and penalties of $2.5 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 03, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations At February 3, 2024, we have commitments totaling $190.9 million through fiscal 2025 related to ocean shipping contracts and commitments of $364.2 million through fiscal 2034 related to agreements for software licenses and support, telecommunication services and store technology assets and maintenance for our stores. Letters of Credit We have $425.0 million in trade letters of credit with various financial institutions, under which $133.2 million was committed to these letters of credit issued for routine purchases of imported merchandise at February 3, 2024. 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 $159.1 million and are committed through various dates through fiscal 2029. Contingencies We are defendants in ordinary, routine litigation or proceedings incidental to our business, including employment-related matters; infringement of intellectual property rights; personal injury/wrongful death claims; real estate matters; environmental and safety issues; and product safety matters. Legal proceedings may also include class, collective, representative and large cases and arbitrations, including those described below. 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, financial condition, or liquidity. 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 reserved or 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. 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 the matters noted below where we have determined that a loss is reasonably possible but not probable, we are unable to reasonably estimate the amount or range of the possible loss at this time 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. Active Matters DC 202-related Matters On February 11, 2022, the U.S. Food and Drug Administration (“FDA”) issued Form 483 observations primarily regarding rodent infestation at Family Dollar’s West Memphis, Arkansas distribution center (“DC 202”) and the related distribution of adulterated product, as well as other processes and procedures that required remediation. In connection therewith, we initiated a retail-level product recall of FDA and U.S. Department of Agriculture-regulated products stored and shipped from DC 202 from January 1, 2021 through February 18, 2022 (the “Recall”), temporarily closed DC 202 for extensive cleaning, temporarily closed the affected stores to permit the removal and destruction of inventory subject to the Recall, ceased sales of relevant inventory subject to the Recall, ceased the direct shipment of FDA-regulated products from DC 202, and initiated corrective actions. In June 2022, we stopped shipping to stores from DC 202 and have since disposed of all of the subject inventory that was in the facility. Beginning in February 2022, 14 putative class actions were filed against us primarily related to issues associated with DC 202 described above. The lawsuits are proceeding in federal court in Tennessee using the federal court’s multi-district litigation process, sought class action status, and allege violations of the Mississippi, Arkansas, Louisiana, Tennessee, Alabama and Missouri consumer protection laws, breach of warranty, negligence, misrepresentation, deception and unjust enrichment related to the sale of products that were alleged to be contaminated by virtue of rodent infestation and other unsanitary conditions at DC 202. Plaintiffs sought damages, attorney fees and costs, punitive damages and replacement or refund of money paid to purchase the relevant products, and any other legal relief available for their claims (in each case in unspecified amounts), including equitable and injunctive relief. As a result of a mediation held in April 2023, the parties reached a claims made settlement whereby one class member per household may receive a $25 Family Dollar gift certificate. On October 27, 2023, the court granted preliminary approval of the settlement. Notice of the settlement and how to submit a claim was given beginning November 10, 2023. The period for filing a claim, opting out of the settlement or filing an objection to the settlement ended on January 9, 2024. A hearing on final approval of the settlement is scheduled for April 5, 2024. On March 1, 2022, a federal grand jury subpoena was issued to us by the Eastern District of Arkansas requesting the production of information, documents and records pertaining to pests, sanitation and compliance with law regarding certain of our procedures and products. In connection with this matter, we investigated the condition of FDA-regulated product shipped from DC 202 and related matters and cooperated fully with the U.S. Department of Justice (“DOJ”) investigation, including producing documents and providing additional information. As previously reported by the company on its Current Report on Form 8-K filed February 26, 2024, Family Dollar Stores, LLC (“Family Dollar”), a wholly-owned subsidiary of the company, has entered into a Plea Agreement (the “Plea Agreement”) in connection with the DOJ investigation. Subject to the terms and conditions of the Plea Agreement, Family Dollar pled guilty to a one count misdemeanor violation of the Food, Drug and Cosmetics Act for causing FDA-regulated products to become adulterated while such articles were held in DC 202. Under the Plea Agreement, Family Dollar agreed to pay $200,000 in fines and a forfeiture money judgment in the amount of $41,475,000, which relates to the value of the adulterated FDA-regulated products that were held in DC 202. The Plea Agreement was approved by the United States District Court for the Eastern District of Arkansas at a hearing on February 26, 2024, and resolves the federal criminal investigation of Family Dollar. Subject to Family Dollar’s compliance with the terms and conditions of the Plea Agreement, the U.S. Attorney for the Eastern District of Arkansas and the DOJ have agreed not to bring further criminal charges against Family Dollar for any acts or conduct arising out of the events covered by the Plea Agreement. No criminal charges were brought against Dollar Tree in connection with this matter. As part of the Plea Agreement, Dollar Tree and Family Dollar agreed to adopt a new or to modify their existing compliance program as it relates to the warehousing and distribution to stores of food, drugs, devices and cosmetics. In addition, the company has agreed to make certain reports to the DOJ in connection with its compliance program during the three-year term. On April 28, 2022, the Attorney General for the State of Arkansas filed a complaint in state court alleging violations of the Arkansas Deceptive Trade Practices Act, gross negligence and negligence, strict liability in tort, unjust enrichment and civil conspiracy related to the sale of products that may have been contaminated by virtue of rodent infestation and other unsanitary conditions at DC 202. The State of Arkansas is seeking injunctive relief, restitution, disgorgement, damages, civil penalties, punitive damages and suspension or revocation of our authorization to do business in Arkansas. We filed a motion to dismiss the State's claims, and it is too early to determine a likely outcome in the matter. As previously disclosed, we recorded a charge of $30.0 million in the first quarter of fiscal 2023 with respect to DC 202-related matters which included a proposed settlement of 14 putative consumer class actions and a potential resolution of the DOJ investigation. As a result of Family Dollar entering into the Plea Agreement, we recorded an additional charge of $26.7 million in the fourth quarter of fiscal 2023 bringing the accrual to $56.7 million. At the present time, we are unable to estimate the amount of additional incremental loss, if any, which may result when the remaining matters are finally resolved. However, we do not believe the resolution of the State of Arkansas complaint or the final settlement of private civil litigation related to DC 202 will have a material adverse effect on our business, financial condition, or liquidity. Talc Product Matters Multiple personal injury lawsuits are pending in state court in Illinois, New York, Texas, and New Jersey against Dollar Tree, Family Dollar or both alleging that certain talc products that we sold caused cancer. The plaintiffs seek compensatory, punitive and exemplary damages, damages for loss of consortium, and attorneys’ fees and costs. Although we have been able to resolve previous talc lawsuits against us without material loss, given the inherent uncertainties of litigation there can be no assurances regarding the outcome of pending or future cases. Future costs to litigate these cases are not known but may be material, and it is uncertain whether our costs will be covered by insurance. In addition, although we have indemnification rights against our vendors in several of these cases, it is uncertain whether the vendors will have the financial ability to fulfill their obligations to us. Acetaminophen Matters |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt Short-term borrowings and long-term debt at February 3, 2024 and January 28, 2023 consist of the following: (in millions) February 3, 2024 January 28, 2023 Short-Term Borrowings: Unsecured commercial paper notes $ — $ — $1.5 billion Revolving Credit Facility — — Total Short-Term Borrowings $ — $ — Long-Term Debt: 4.00% Senior Notes, due 2025 $ 1,000.0 $ 1,000.0 4.20% Senior Notes, due 2028 1,250.0 1,250.0 2.65% Senior Notes, due 2031 800.0 800.0 3.375% Senior Notes, due 2051 400.0 400.0 Debt discount and issuance costs (23.7) (28.4) Total Long-Term Debt $ 3,426.3 $ 3,421.6 Less: Current portion $ — $ — Non-current portion of long-term debt $ 3,426.3 $ 3,421.6 Maturities of long-term debt are as follows (in millions): Fiscal Year (in millions) 2024 $ — 2025 1,000.0 2026 — 2027 — 2028 1,250.0 Thereafter 1,200.0 Total $ 3,450.0 Commercial Paper Program In July 2023, we established a commercial paper program to issue unsecured commercial paper notes with maturities up to 397 days from the date of issue, up to a maximum aggregate face or principal amount outstanding at any time of $1.5 billion. We expect to use the net proceeds of note issuances for general corporate purposes. Our Revolving Credit Facility will serve as a liquidity backstop for the repayment of notes outstanding under the program. The notes rank pari passu with all of our other unsecured and unsubordinated indebtedness. We issued $1,070.5 million principal amount of notes during fiscal 2023 and incurred interest expense of $2.6 million related to these notes. As of February 3, 2024, no notes were outstanding under the program. Revolving Credit Facility On December 8, 2021, we entered into a credit agreement (the “Credit Agreement”), with JPMorgan Chase Bank, N.A., as agent, and the financial institutions from time to time party thereto, providing for a $1.5 billion revolving credit facility (the “Revolving Credit Facility”), of which up to $350.0 million is available for letters of credit. At February 3, 2024 and January 28, 2023, we had letters of credit outstanding under the Revolving Credit Facility of $4.1 million and $4.4 million, respectively. The Revolving Credit Facility matures on December 8, 2026, subject to extensions permitted under the Credit Agreement. Loans under the Revolving Credit Facility bear interest at the Adjusted Term SOFR Rate (as defined in the Credit Agreement) plus 1.125%, subject to adjustment based on (i) our public debt rating and (ii) our leverage ratio. At February 3, 2024, the Revolving Credit Facility bore interest at 6.55%. We pay certain commitment fees in connection with the Revolving Credit Facility. The Revolving Credit Facility allows voluntary repayment of outstanding loans at any time without premium or penalty, other than customary “breakage” costs with respect to Secured Overnight Financing Rate (“SOFR”) loans. There is no required amortization under the Revolving Credit Facility. The Revolving Credit Facility contains 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 Revolving Credit Facility also contains a maximum 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 Revolving Credit Facility to be declared due and payable and the commitments thereunder to be terminated. In connection with entry into the Credit Agreement, we terminated all commitments and fulfilled all obligations under our existing credit agreement dated April 19, 2018. Senior Notes Fiscal 2018 Offering On April 19, 2018, we completed the registered offering of $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 “Notes”). The Notes were issued pursuant to an indenture, dated as of April 2, 2018 (the “Indenture”), 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 were scheduled to mature on May 15, 2023 and bore interest at the rate of 3.70% annually. We redeemed the 2023 Notes in the fourth quarter of 2021 as discussed in “Repayments of Long-Term Debt” below. 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 Notes semiannually, in arrears, on May 15 and November 15 of each year to holders of record on the preceding May 1 and November 1, respectively. We may redeem the Notes of each series in whole or in part, at our option, at any time and from time to time prior to March 15, 2025 in the case of the 2025 Notes and February 15, 2028 in the case of the 2028 Notes (the date with respect to each such 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 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. Fiscal 2021 Offering On December 1, 2021, we completed the registered offering of $800.0 million aggregate principal amount of 2.65% Senior Notes due 2031 (the “2031 Notes”) and $400.0 million aggregate principal amount of 3.375% Senior Notes due 2051 (the “2051 Notes” and, together with the 2031 Notes, the “New Notes”). The New Notes were issued pursuant to the Indenture, as supplemented by the Second Supplemental Indenture dated as of December 1, 2021 (the “Second Supplemental Indenture”). The New Notes are unsecured, unsubordinated obligations of ours and rank equally 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 New Notes. The 2031 Notes mature on December 1, 2031 and bear interest at the rate of 2.650% per annum. The 2051 Notes mature on December 1, 2051 and bear interest at the rate of 3.375% per annum. We are required to pay interest on the New Notes semiannually, in arrears, on June 1 and December 1 of each year to holders of record on the preceding May 15 and November 15, respectively. We may redeem the New Notes of each series in whole or in part at any time and from time to time prior to (i) in the case of the 2031 Notes, September 1, 2031, and (ii) in the case of the 2051 Notes, June 1, 2051 (the date with respect to each such series, the “Applicable Par Call Date”), in each case, at a “make-whole” price described in the Second 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 New 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 Second Supplemental Indenture) with respect to any series, the holders of the New Notes of such series may require us to purchase for cash all or a portion of their New Notes of such series at a purchase price equal to 101% of the principal amount of such New 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 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 New Notes to become or to be declared due and payable, as applicable. Repayments of Long-term Debt In the fourth quarter of fiscal 2021, we used the proceeds from the offering of the New Notes discussed above to redeem the $1.0 billion 2023 Notes. We incurred a redemption premium of $43.8 million in connection with the early redemption of the 2023 Notes and accelerated the expensing of $2.7 million of amortizable non-cash deferred financing and original issue discount costs, which are reflected in “Interest expense, net” within the accompanying Consolidated Statements of Operations for the year ended January 29, 2022. Debt Covenants As of February 3, 2024, we were in compliance with the debt covenants for both our short-term borrowings and long-term debt. |
Leases
Leases | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
Leases | Leases Our lease portfolio primarily consists of leases for our retail store locations, vehicles and trailers, as well as distribution center space and equipment. The lease cost for operating leases that was recognized in the accompanying Consolidated Statements of Operations was as follows: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Operating lease cost $ 1,713.0 $ 1,652.8 $ 1,602.8 Variable lease cost 450.3 428.8 417.8 Short-term lease cost 20.0 10.8 5.6 Total lease cost* $ 2,183.3 $ 2,092.4 $ 2,026.2 *Excludes sublease income, which is immaterial There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. As of February 3, 2024, maturities of lease liabilities were as follows: Fiscal Year (in millions) 2024 $ 1,622.3 2025 1,572.2 2026 1,336.3 2027 1,074.3 2028 786.4 Thereafter 1,499.5 Total undiscounted lease payments 7,891.0 Less interest 930.4 Present value of lease liabilities $ 6,960.6 The future lease payments above exclude $415.7 million of legally binding minimum lease payments for leases signed but not yet commenced as of February 3, 2024. Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is as follows: February 3, 2024 January 28, 2023 January 29, 2022 Weighted-average remaining lease term (years) 5.7 5.7 5.9 Weighted-average discount rate 4.1 % 3.6 % 3.4 % The following represents supplemental information pertaining to our operating lease arrangements: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,852.1 $ 1,559.7 $ 1,579.8 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 03, 2024 | |
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. 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 2 under the caption “Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of” and Note 16 for further information regarding the impairment charges recorded in fiscal 2023, fiscal 2022 and fiscal 2021. Our indefinite-lived intangible assets are recorded at carrying value, and, if impaired, are adjusted to fair value using Level 3 inputs. Refer to Note 2 under the caption “Goodwill and Nonamortizing Intangible Assets” and Note 15 for further information regarding the process of determining the fair value of these assets and the impairment charges recorded in fiscal 2023, fiscal 2022 and fiscal 2021. 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 carrying values of our Revolving Credit Facility and borrowings under our commercial paper program approximate their fair values. The aggregate fair values and carrying values of our long-term borrowings were as follows: February 3, 2024 January 28, 2023 (in millions) Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,140.0 $ 3,430.1 $ 3,162.8 $ 3,426.7 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024 and January 28, 2023. Share Repurchase Programs We periodically repurchase shares of our common stock under share repurchase programs authorized by our Board of Directors. Under the existing Board repurchase authorization, we may repurchase up to $2.5 billion of our common stock in open market or privately negotiated transactions with financial institutions. The repurchase authorization does not have an expiration date. We repurchased 3,905,599, 4,613,696 and 9,156,898 shares of common stock on the open market in fiscal 2023, fiscal 2022 and fiscal 2021, respectively, for $504.3 million, $647.5 million and $950.0 million, respectively. At February 3, 2024, we had $1.35 billion remaining under our existing $2.5 billion Board repurchase authorization. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table sets forth the calculations of basic and diluted net income (loss) per share: Year Ended (in millions, except per share data) February 3, 2024 January 28, 2023 January 29, 2022 Basic net income (loss) per share: Net income (loss) $ (998.4) $ 1,615.4 $ 1,327.9 Weighted average number of shares outstanding 219.5 223.2 227.9 Basic net income (loss) per share $ (4.55) $ 7.24 $ 5.83 Diluted net income (loss) per share: Net income (loss) $ (998.4) $ 1,615.4 $ 1,327.9 Weighted average number of shares outstanding 219.5 223.2 227.9 Dilutive impact of share-based awards (as determined by applying the — 0.9 1.1 Weighted average number of shares and dilutive potential shares 219.5 224.1 229.0 Diluted net income (loss) per share $ (4.55) $ 7.21 $ 5.80 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 03, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plan Dollar Tree Retirement Savings Plan We maintain a 401(k) plan which is available to all full-time, United States-based employees who are at least 18 years of age. Eligible employees may make elective salary deferrals. We make contributions in the form of a dollar-for-dollar match on the first five percent of employee contributions 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 (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Cost of sales $ 9.9 $ 8.6 $ 8.2 Selling, general and administrative expenses 26.0 23.1 20.6 Total $ 35.9 $ 31.7 $ 28.8 All eligible employees are immediately vested in any company match contributions under the 401(k) plan. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Feb. 03, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Fixed Stock-Based Compensation Plans The 2011 Omnibus Incentive Plan permitted us to grant to our employees, consultants and directors 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 plan permitted us to grant equity awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, service-based restricted stock units (“RSUs”), performance bonuses, performance-based restricted stock units (“PSUs”), non-employee director stock options and other equity-related awards. As of March 17, 2021, the plan was no longer available for new grants of awards, but all outstanding awards that were granted under the plan prior to March 17, 2021 continue to be governed by the terms and conditions of the plan and applicable award agreements. Effective June 10, 2021, the 2011 Omnibus Incentive Plan was replaced and superseded by the 2021 Omnibus Incentive Plan (“Omnibus Plan”). The Omnibus Plan permits us to grant up to 6.5 million shares of our common stock to our employees, consultants and directors. The form of equity awards authorized for grant under the Omnibus Plan are substantially the same as those permitted by the predecessor plan. 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 Omnibus 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. Prior to July 1, 2023, the 2013 Director Deferred Compensation Plan permitted our directors to defer all or a portion of fees for Board or Board committee service 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. Deferred amounts to be paid in common stock are 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. The 2013 plan expired on June 30, 2023. All amounts deferred by directors pursuant to the terms of the 2013 plan on or before June 30, 2023 will continue to be administered in accordance with the terms of the 2013 plan and applicable deferral elections. Beginning July 1, 2023, our non-employee directors are permitted to defer all or a part of fees earned for his or her service as a director pursuant to our Non-Employee Director Deferred Compensation Program, which operates in conjunction with, and under the authority of, the Omnibus Plan. Pursuant to this program, cash fees may be deferred into either a cash account or a phantom stock account, and annual equity awards for service as a director may be deferred into the director’s phantom stock account. Deferred fees that are paid out in cash will earn interest at the 30-year Treasury Bond Rate. Deferred amounts to be paid in common stock are determined by dividing the deferred fee amount by the closing market price of a share of our common stock on the date of deferral. Total stock-based compensation expense was recorded in the accompanying Consolidated Statements of Operations as follows: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Cost of sales $ 22.4 $ 19.7 $ 18.3 Selling, general and administrative expenses 74.3 90.7 61.6 Total stock-based compensation expense $ 96.7 $ 110.4 $ 79.9 Excess tax benefit on stock-based compensation recognized in the provision for income taxes $ 3.9 $ 9.8 $ 8.5 Restricted Stock We issue 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. For PSUs, the compensation expense recorded is re-evaluated at each reporting period and adjusted, as necessary, based on the probability of achieving the performance criteria. RSUs The fair value of RSUs is determined based on our closing stock price on the grant date. The following table summarizes the status of RSUs as of February 3, 2024 and changes during the year then ended: Number of RSUs Weighted Average Grant Date Fair Value Nonvested at January 28, 2023 868,720 $ 123.99 Granted 550,132 141.70 Vested (486,439) 110.56 Forfeited (93,227) 141.20 Nonvested at February 3, 2024 839,186 $ 141.45 The total fair value of the RSUs vested during the years ended February 3, 2024, January 28, 2023 and January 29, 2022 was $53.8 million, $51.5 million and $56.8 million, respectively. The weighted average grant date fair value of the RSUs granted in fiscal 2023, fiscal 2022 and fiscal 2021 was $141.70, $158.05 and $109.01, respectively. As of February 3, 2024, there was $65.9 million of total unrecognized compensation expense related to the outstanding RSUs which is expected to be recognized over a weighted-average period of 1.4 years. PSUs Historically, we have granted PSUs that have a service and performance condition. The fair value of these awards is determined based on our closing stock price on the grant date. In fiscal 2023, we granted PSUs that cliff vest at the end of three years and that contain a market condition modifier, in addition to having a service and performance condition. The market condition modifier can adjust the number of shares that vest under the award based on a comparison of our total shareholder return to that of a designated peer group over the performance period. The fair value of these awards incorporating the market condition was estimated on the grant date using a Monte Carlo simulation model with the following weighted average assumptions: Fiscal 2023 Expected term (in years) 2.8 Expected stock price volatility 34.5 % Dividend yield — % Risk-free interest rate 3.82 % The expected stock price volatility is based on the historical and implied volatility of our common stock over a period matching the expected term of the awards granted. The dividend yield reflects that we have never paid cash dividends. The risk-free interest rate represents the yield curve in effect at the time of grant for U.S. Treasury zero-coupon securities with maturities that approximate the expected term of the awards. The following table summarizes the status of PSUs as of February 3, 2024 and changes during the year then ended: Number of PSUs Weighted Average Grant Date Fair Value Nonvested at January 28, 2023 154,823 $ 125.84 Granted 122,419 129.24 Vested (96,508) 89.81 Forfeited (30,584) 129.29 Nonvested at February 3, 2024 150,150 $ 147.29 The total fair value of the PSUs vested during the years ended February 3, 2024, January 28, 2023 and January 29, 2022 was $8.7 million, $44.5 million and $17.3 million, respectively. The weighted average grant date fair value of the PSUs granted in fiscal 2023, fiscal 2022 and fiscal 2021 was $129.24, $159.57 and $95.04, respectively. As of February 3, 2024, there was $3.7 million of total unrecognized compensation expense related to these PSUs which is expected to be recognized over a weighted-average period of 1.1 years. We assess the probability of the achievement of the remaining performance targets at the end of each reporting period and based on that assessment, cumulative adjustments may be recorded in future periods. Stock Options Historically, we have not used stock options broadly as part of our compensation strategy. In fiscal 2023, we began to issue stock options to certain key executives. These awards generally have a ten-year term and vest in equal installments on each of the first three In addition, in fiscal 2022, we granted a one-time award of options to purchase 2,252,587 shares of our common stock at a fair value of $135.6 million to the Executive Chairman of the Board, who was also appointed Chief Executive Officer of the company effective January 29, 2023. The grant of options was subject to the terms and conditions of a five-year Executive Agreement. The option award has a ten-year term and is scheduled to vest in equal installments on each of the first five Options granted in fiscal 2021 were immaterial. 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. The weighted average assumptions used in the Black-Scholes option pricing model for the executive stock options granted in fiscal 2023 and the assumptions used for the fiscal 2022 award granted to the Executive Chairmain are as follows: Fiscal 2023 Fiscal 2022 Expected term (in years) 6.0 6.5 Expected stock price volatility 36.3 % 34.1 % Dividend yield — % — % Risk-free interest rate 3.81 % 2.15 % The simplified method was used to estimate the expected term of the options due to our lack of historical option exercise experience and the “plain vanilla” characteristics of the option awards. The simplified method results in an expected term equal to the average of the weighted average time-to-vesting and the contractual life of the options. The expected stock price volatility is based on the historical volatility of our common stock over a period matching the expected term of the options granted. The dividend yield reflects that we have never paid cash dividends. The risk-free interest rate represents the yield curve in effect at the time of grant for U.S. Treasury zero-coupon securities with maturities that approximate the expected term of the options. Prior to July 1, 2023, certain of our directors elected to defer their compensation into stock options under the 2013 Director Deferred Compensation Plan. These options vested immediately and were expensed on the grant date. The following tables summarize information about options outstanding at February 3, 2024 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 at January 28, 2023 2,276,937 $ 156.46 Granted 85,447 137.93 Exercised (1,207) 77.59 Forfeited (1,075) 143.55 Outstanding at February 3, 2024 2,360,102 $ 155.84 8.1 $ 1.5 Exercisable at February 3, 2024 475,810 $ 153.92 7.9 $ 1.1 The intrinsic value of options exercised during fiscal 2023, fiscal 2022 and fiscal 2021 was $0.1 million, less than $0.1 million and $5.6 million, respectively. As of February 3, 2024, there was $87.5 million of total unrecognized compensation expense related to these options which is expected to be recognized over a weighted-average period of 3.1 years. |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | Segments and Disaggregated Revenue We operate more than 16,700 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 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 (loss). The CODM reviews these metrics for each of our reporting segments. We may revise the measurement of each segment’s operating income (loss), 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 and the results of operations for our Summit Pointe property in Chesapeake, Virginia that are considered shared services and therefore these selling, general and administrative costs are excluded from our two reporting business segments. The Family Dollar segment operating income (loss) includes advertising revenue, which is a component of “Other revenue” in the accompanying Consolidated Statements of Operations. 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 (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Consolidated Statements of Operations Data: Net sales: Dollar Tree $ 16,770.3 $ 15,405.7 $ 13,922.1 Family Dollar 13,811.3 12,912.5 12,387.7 Consolidated net sales $ 30,581.6 $ 28,318.2 $ 26,309.8 Gross profit: Dollar Tree $ 6,008.9 $ 5,775.5 $ 4,603.6 Family Dollar 3,300.7 3,146.4 3,122.3 Consolidated gross profit $ 9,309.6 $ 8,921.9 $ 7,725.9 Operating income (loss): Dollar Tree $ 2,278.8 $ 2,536.0 $ 1,607.0 Family Dollar (2,663.5) 127.5 543.1 Corporate, support and other (497.1) (427.2) (338.7) Consolidated operating income (loss) (881.8) 2,236.3 1,811.4 Interest expense, net 106.8 125.3 178.9 Other expense, net 0.1 0.4 0.3 Income (loss) before income taxes $ (988.7) $ 2,110.6 $ 1,632.2 Depreciation and amortization expense: Dollar Tree $ 370.5 $ 338.8 $ 316.0 Family Dollar 440.4 402.4 369.8 Corporate, support and other 30.4 26.8 30.2 Consolidated depreciation and amortization expense $ 841.3 $ 768.0 $ 716.0 As of (in millions) February 3, 2024 January 28, 2023 Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 423.3 $ 423.6 Family Dollar 490.5 1,559.5 Consolidated goodwill $ 913.8 $ 1,983.1 Total assets: Dollar Tree $ 10,315.9 $ 9,914.6 Family Dollar 11,037.0 12,562.2 Corporate, support and other 670.6 545.3 Consolidated total assets $ 22,023.5 $ 23,022.1 Additions to property, plant and equipment: Dollar Tree $ 993.5 $ 548.7 Family Dollar 995.2 605.2 Corporate, support and other 112.6 94.9 Consolidated additions to property, plant and equipment $ 2,101.3 $ 1,248.8 Disaggregated Revenue The following table summarizes net sales by merchandise category for our segments: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Dollar Tree segment net sales by Consumable $ 7,915.6 47.2 % $ 6,978.8 45.3 % $ 6,334.5 45.5 % Variety 7,781.4 46.4 % 7,456.3 48.4 % 6,794.0 48.8 % Seasonal 1,073.3 6.4 % 970.6 6.3 % 793.6 5.7 % Total Dollar Tree segment net sales $ 16,770.3 100.0 % $ 15,405.7 100.0 % $ 13,922.1 100.0 % Family Dollar segment net sales by Consumable $ 11,086.1 80.3 % $ 10,036.2 77.7 % $ 9,446.5 76.3 % Home products 930.0 6.7 % 982.5 7.6 % 1,033.9 8.3 % Apparel and accessories 673.4 4.9 % 732.2 5.7 % 781.5 6.3 % Seasonal and electronics 1,121.8 8.1 % 1,161.6 9.0 % 1,125.8 9.1 % Total Family Dollar segment net sales $ 13,811.3 100.0 % $ 12,912.5 100.0 % $ 12,387.7 100.0 % |
Supply Chain Finance Program
Supply Chain Finance Program | 12 Months Ended |
Feb. 03, 2024 | |
Payables and Accruals [Abstract] | |
Supply Chain Finance Program | Supply Chain Finance Program During the third quarter of fiscal 2023, we implemented a supply chain finance program, administered through a financial institution, which provides participating suppliers with the opportunity to finance payments due from us. Participating suppliers may, at their sole discretion, elect to finance one or more invoices of ours prior to their scheduled due dates at a discounted price with the financial institution. Our obligations to our suppliers, including amounts due and scheduled payment dates, are not impacted by the supplier’s decision to finance amounts under these arrangements. As such, the outstanding payment obligations under our supply chain financing program are included within “ Accounts payable As of February 3, 2024, our outstanding payment obligations under this program were $11.8 million. |
Goodwill and Nonamortizing Inta
Goodwill and Nonamortizing Intangible Assets | 12 Months Ended |
Feb. 03, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Nonamortizing Intangible Assets | Goodwill and Nonamortizing Intangible Assets Impairments In connection with our annual impairment testing of goodwill and nonamortizing intangible assets during the fourth quarter, and as a result of the anticipated store closures described in Note 16 , we determined it was more likely than not that an impairment loss had been incurred with respect to the Family Dollar goodwill and trade name, and proceeded to perform a quantitative impairment test of both assets. We estimated, with the assistance of a third party specialist, the fair value of the Family Dollar trade name based on an income approach using the relief-from-royalty method. The significant estimates used in the relief-from-royalty method, which are level 3 inputs, include a company-specific royalty rate, our weighted average cost of capital adjusted by a company-specific risk premium and trade name premium. The valuation date for the Family Dollar trade name was November 25, 2023. The results of the impairment test showed that the carrying value of the Family Dollar trade name exceeded its estimated fair value resulting in the recognition of a $950.0 million impairment charge in the fourth quarter of fiscal 2023, which is recorded as a component of “Selling, general and administrative expenses” in the accompanying Consolidated Statements of Operations. Subsequent to the Family Dollar trade name and long-lived asset impairment tests, we estimated, with the assistance of a third party specialist, the fair value of the Family Dollar reporting unit using a combination of a market multiple method and a discounted cash flow method. The significant estimates used in the discounted cash flow method, which are level 3 inputs, include our weighted average cost of capital adjusted by a company-specific risk premium, long-term rates of growth and profitability for the Family Dollar reporting unit, working capital effects, and changes in market conditions, consumer trends and strategy. The market multiple method utilized comparable public company revenue and profitability multiples to estimate the fair value of the Family Dollar reporting unit. The valuation date for the Family Dollar reporting unit was November 25, 2023. The annual goodwill impairment evaluation in 2023 showed that the fair value of the Family Dollar reporting unit was lower than its carrying value resulting in the recognition of a $1,069.0 million impairment charge in the fourth quarter of fiscal 2023. The annual goodwill and nonamortizing intangible asset impairment evaluations in fiscal 2022 and fiscal 2021 did not result in impairment. We have recorded cumulative goodwill impairment charges totaling $4,109.0 million, all of which relate to the Family Dollar reporting unit and recorded during the fourth quarters of fiscal 2023 ($1,069.0 million), fiscal 2019 ($313.0 million), and fiscal 2018 ($2,727.0 million). Goodwill Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the years ended February 3, 2024 and January 28, 2023 are as follows: (in millions) Dollar Tree Family Dollar Total Balance at January 29, 2022 $ 424.9 $ 1,559.5 $ 1,984.4 Foreign currency translation adjustments (1.3) — (1.3) Balance at January 28, 2023 423.6 1,559.5 1,983.1 Foreign currency translation adjustments (0.3) — (0.3) Goodwill impairment — (1,069.0) (1,069.0) Balance at February 3, 2024 $ 423.3 $ 490.5 $ 913.8 |
Store Portfolio Optimization Re
Store Portfolio Optimization Review | 12 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Store Portfolio Optimization Review | Store Portfolio Optimization Review During the fourth quarter of fiscal 2023, we announced that we had initiated a comprehensive store portfolio optimization review which involved identifying stores for closure, relocation or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors. As a result of this portfolio optimization review, we plan to close approximately 970 underperforming Family Dollar stores, including approximately 600 stores to be closed in the first half of fiscal 2024, and approximately 370 stores to be closed at the end of each store's current lease term. Additionally, we identified approximately 30 underperforming Dollar Tree stores for closure and plan to close each store at the end of the store's current lease term. We performed an undiscounted cash flow analysis on each individual store’s asset group, and determined that certain store asset groups had net carrying values that exceeded their estimated undiscounted future cash flows. Accordingly, we estimated the fair values of the asset groups based on a discounted cash flow method. For stores that are closing in the first half of fiscal 2024, we estimated the remaining fair value of the asset groups taking into account our ability to generate sublease income or lease termination benefits prior to the end of the lease term. The significant estimates used in the discounted cash flow methodology, which are based on level 3 inputs, include our expectations for future operations and projected cash flows. The valuation date for estimating the fair value of the long-lived assets for these stores was November 25, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 03, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly-owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation. All amounts stated herein are in U.S. Dollars. |
Fiscal Year | Fiscal Year |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 February 3, 2024 and January 28, 2023 includes $304.2 million and $317.2 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. In accordance with Accounting Standards Codification (“ASC”) Topic 305 “Cash and Cash Equivalents,” 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 In accordance with ASC Topic 330 “Inventory,” 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 In accordance with ASC Topic 360 “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 Building improvements 20 years Furniture, fixtures and equipment, software 3 to 15 years Leasehold improvements Shorter of remaining lease term or related asset life Depreciation is included in “Selling, general and administrative expenses” in the accompanying Consolidated Statements of Operations, with the exception of depreciation related to our merchandising and distribution-related assets which are included in “Cost of sales” in the accompanying Consolidated Statements of Operations. |
Capitalized Interest | Capitalized Interest |
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 auto. 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, historical loss development factors, and other actuarial assumptions. Our self-insurance liabilities associated with workers’ compensation, general liability and auto are recorded within “Other current liabilities” and “Other liabilities” in the accompanying Consolidated Balance Sheets and amounted to $363.5 million and $318.2 million at February 3, 2024 and January 28, 2023, respectively. 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 auto 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. These amounts are reflected in “Restricted cash” in the accompanying Consolidated Balance Sheets and amounted to $72.3 million and $68.5 million at February 3, 2024 and January 28, 2023, respectively. |
Lease Accounting | Lease Accounting Our lease portfolio primarily consists of leases for our retail store locations, vehicles and trailers, as well as distribution center space and equipment. In accordance with ASC Topic 842 “Leases,” 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, we determine the initial classification and measurement of the right-of-use (“ROU”) assets and lease liabilities at the lease commencement date and thereafter if modified. ROU assets represent our right to control the underlying assets under lease, over the contractual term. ROU assets and lease liabilities are recognized on the Consolidated Balance Sheets based on the present value of future minimum lease payments to be made over the lease term. 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 ROU asset is reduced by lease incentives, which has the effect of lowering the operating lease expense. Operating lease ROU 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 an ROU 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 ROU 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 ROU 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. |
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 |
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 are 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. For both goodwill and nonamortizing intangible assets, we have the option to initially perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. Alternatively, we may bypass the qualitative assessment in any given year and proceed directly to performing the quantitative impairment test. We perform our annual impairment testing of goodwill and nonamortizing intangible assets during the fourth quarter of each year. Our reporting units are determined in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” When a quantitative impairment test is performed for the Family Dollar trade name, we compare the 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 evaluate the Family Dollar goodwill for impairment. When a quantitative test is performed, we 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. |
Revenue Recognition and Taxes Collected | Revenue Recognition We recognize revenue in accordance with ASC Topic 606 "Revenue from Contracts with Customers." Net sales consist of the net sales of merchandise in our stores. Revenue transactions associated with the sale of merchandise comprise a single performance obligation, which consists of the sale of products to customers. Revenue is recognized when we satisfy our performance obligations by transferring control of promised products to our customers, which occurs at a point in time. Sales taxes imposed on our revenues from product sales are presented on a net basis in the accompanying Consolidated Statements of Operations. Gift cards that we issue to customers are recorded as contract liabilities until they are redeemed, at which point revenue is recognized. We record reductions to revenue for discounts and estimated customer returns. Historically, our customer returns have not been material. |
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. In accordance with ASC Subtopic 705-20 “Accounting for Consideration Received from a Vendor,” 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 |
Advertising Costs | Advertising Costs |
Income Taxes | Income Taxes In accordance with ASC Topic 740 “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. Deferred tax assets are reduced by valuation allowances when necessary. Assessing whether deferred tax assets are realizable requires significant judgment. We consider all available positive and negative evidence, including historical operating performance and expectations of future operating performance. The ultimate realization of deferred tax assets is often dependent upon future taxable income and therefore can be uncertain. To the extent we believe it is more likely than not that all or some portion of the asset will not be realized, valuation allowances are established against our deferred tax assets, which increase income tax expense in the period when such a determination is made. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions or obtaining new information on particular tax positions may cause a change to the effective tax rate. We have made the policy election to record any liability associated with Global Intangible Low Tax Income ("GILTI") in the period in which it is incurred. 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 |
Net Income (Loss) Per Share | Net Income (Loss) Per Share In accordance with ASC Topic 260 “Earnings 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 restricted stock units after applying the treasury stock method. |
Foreign Currency | Foreign Currency |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 "Liabilities - Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") which requires entities to disclose the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about their obligations under these programs, including a rollforward of those obligations. We adopted ASU 2022-04 for fiscal 2023 on a retrospective basis, except for the amendments relating to the rollforward requirement, which are required to be adopted for fiscal 2024 on a prospective basis. The adoption did not have a material impact on our consolidated financial statements. Refer to Note 14 for a discussion of our supply chain finance program. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which requires disclosure of incremental segment information on an annual and interim basis, including enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. ASU 2023-07 also requires entities to disclose the title and position of the CODM and explain how the CODM uses the reported measures of segment profit or loss in assessing performance and allocating resources. Further, it requires that all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 be provided in interim periods. ASU 2023-07 is effective on a retrospective basis for annual periods beginning in fiscal 2024 and for interim periods beginning in fiscal 2025. We are currently evaluating the impact of this standard to our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment, Net | In accordance with ASC Topic 360 “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 Building improvements 20 years Furniture, fixtures and equipment, software 3 to 15 years Leasehold improvements Shorter of remaining lease term or related asset life Property, plant and equipment, net, as of February 3, 2024 and January 28, 2023 consists of the following: (in millions) February 3, 2024 January 28, 2023 Land $ 247.9 $ 242.6 Buildings 1,796.7 1,631.6 Leasehold improvements 3,646.9 3,227.9 Furniture, fixtures and equipment 5,899.2 5,261.7 Construction in progress 1,184.8 633.8 Total property, plant and equipment 12,775.5 10,997.6 Less: accumulated depreciation 6,631.4 6,025.4 Total property, plant and equipment, net $ 6,144.1 $ 4,972.2 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property, Plant and Equipment, Net | In accordance with ASC Topic 360 “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 Building improvements 20 years Furniture, fixtures and equipment, software 3 to 15 years Leasehold improvements Shorter of remaining lease term or related asset life Property, plant and equipment, net, as of February 3, 2024 and January 28, 2023 consists of the following: (in millions) February 3, 2024 January 28, 2023 Land $ 247.9 $ 242.6 Buildings 1,796.7 1,631.6 Leasehold improvements 3,646.9 3,227.9 Furniture, fixtures and equipment 5,899.2 5,261.7 Construction in progress 1,184.8 633.8 Total property, plant and equipment 12,775.5 10,997.6 Less: accumulated depreciation 6,631.4 6,025.4 Total property, plant and equipment, net $ 6,144.1 $ 4,972.2 |
Schedule of Other Current Liabilities | Other current liabilities as of February 3, 2024 and January 28, 2023 consist of the following: (in millions) February 3, 2024 January 28, 2023 Taxes (other than income taxes) $ 292.3 $ 253.7 Compensation and benefits 247.3 143.9 Insurance 143.4 131.1 Other 384.2 289.0 Total other current liabilities $ 1,067.2 $ 817.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | The provision for income taxes consists of the following: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Current taxes: Federal $ 222.2 $ 322.0 $ 271.1 State 46.1 50.2 56.3 Foreign — 0.1 0.1 Total current taxes 268.3 372.3 327.5 Deferred taxes: Federal (225.3) 88.1 50.3 State (39.2) 30.3 (76.5) Foreign 5.9 4.5 3.0 Total deferred taxes (258.6) 122.9 (23.2) Provision for income taxes $ 9.7 $ 495.2 $ 304.3 |
Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows: Year Ended February 3, 2024 January 28, 2023 January 29, 2022 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: Goodwill impairment (22.7) — — State and local income taxes, net of federal income tax benefit (1.0) 3.7 3.7 Non-deductible expenses (1.0) 0.1 0.1 Work Opportunity Tax Credit 3.0 (1.4) (1.8) Deferred tax rate change — 0.7 (3.8) Other, net (0.3) (0.6) (0.6) Effective tax rate (1.0) % 23.5 % 18.6 % |
Components of Deferred Tax Assets and Liabilities | Significant components of our net deferred tax assets (liabilities) follow: (in millions) February 3, January 28, Deferred tax assets: Operating lease liabilities $ 1,800.4 $ 1,703.5 Net operating losses, interest expense and credit carryforwards 72.8 69.3 Accrued expenses 35.7 31.0 Accrued compensation expense 39.3 33.9 State tax election 13.1 14.3 Other 4.7 2.5 Total deferred tax assets 1,966.0 1,854.5 Valuation allowance (17.3) (4.0) Deferred tax assets, net 1,948.7 1,850.5 Deferred tax liabilities: Operating lease ROU assets (1,639.7) (1,630.9) Other intangibles (529.1) (760.4) Property and equipment (571.8) (509.2) Prepaids (35.8) (25.9) Inventory (4.4) (14.8) Total deferred tax liabilities (2,780.8) (2,941.2) Deferred income taxes, net $ (832.1) $ (1,090.7) |
Reconciliation of Unrecognized Tax Benefits | The following is a reconciliation of our total gross unrecognized tax benefits: (in millions) February 3, 2024 January 28, 2023 Beginning Balance $ 17.4 $ 20.9 Additions for tax positions of prior years 5.6 2.3 Additions, based on tax positions related to current year 2.3 4.0 Settlements (0.3) (0.1) Lapses in statutes of limitation (3.0) (9.7) Ending balance $ 22.0 $ 17.4 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Short-term borrowings and long-term debt at February 3, 2024 and January 28, 2023 consist of the following: (in millions) February 3, 2024 January 28, 2023 Short-Term Borrowings: Unsecured commercial paper notes $ — $ — $1.5 billion Revolving Credit Facility — — Total Short-Term Borrowings $ — $ — Long-Term Debt: 4.00% Senior Notes, due 2025 $ 1,000.0 $ 1,000.0 4.20% Senior Notes, due 2028 1,250.0 1,250.0 2.65% Senior Notes, due 2031 800.0 800.0 3.375% Senior Notes, due 2051 400.0 400.0 Debt discount and issuance costs (23.7) (28.4) Total Long-Term Debt $ 3,426.3 $ 3,421.6 Less: Current portion $ — $ — Non-current portion of long-term debt $ 3,426.3 $ 3,421.6 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt are as follows (in millions): Fiscal Year (in millions) 2024 $ — 2025 1,000.0 2026 — 2027 — 2028 1,250.0 Thereafter 1,200.0 Total $ 3,450.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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) February 3, 2024 January 28, 2023 January 29, 2022 Operating lease cost $ 1,713.0 $ 1,652.8 $ 1,602.8 Variable lease cost 450.3 428.8 417.8 Short-term lease cost 20.0 10.8 5.6 Total lease cost* $ 2,183.3 $ 2,092.4 $ 2,026.2 *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: February 3, 2024 January 28, 2023 January 29, 2022 Weighted-average remaining lease term (years) 5.7 5.7 5.9 Weighted-average discount rate 4.1 % 3.6 % 3.4 % The following represents supplemental information pertaining to our operating lease arrangements: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,852.1 $ 1,559.7 $ 1,579.8 |
Maturities of lease liabilities | As of February 3, 2024, maturities of lease liabilities were as follows: Fiscal Year (in millions) 2024 $ 1,622.3 2025 1,572.2 2026 1,336.3 2027 1,074.3 2028 786.4 Thereafter 1,499.5 Total undiscounted lease payments 7,891.0 Less interest 930.4 Present value of lease liabilities $ 6,960.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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: February 3, 2024 January 28, 2023 (in millions) Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,140.0 $ 3,430.1 $ 3,162.8 $ 3,426.7 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of basic and diluted net income per share | The following table sets forth the calculations of basic and diluted net income (loss) per share: Year Ended (in millions, except per share data) February 3, 2024 January 28, 2023 January 29, 2022 Basic net income (loss) per share: Net income (loss) $ (998.4) $ 1,615.4 $ 1,327.9 Weighted average number of shares outstanding 219.5 223.2 227.9 Basic net income (loss) per share $ (4.55) $ 7.24 $ 5.83 Diluted net income (loss) per share: Net income (loss) $ (998.4) $ 1,615.4 $ 1,327.9 Weighted average number of shares outstanding 219.5 223.2 227.9 Dilutive impact of share-based awards (as determined by applying the — 0.9 1.1 Weighted average number of shares and dilutive potential shares 219.5 224.1 229.0 Diluted net income (loss) per share $ (4.55) $ 7.21 $ 5.80 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 (loss) per share: Year Ended (in millions, except per share data) February 3, 2024 January 28, 2023 January 29, 2022 Basic net income (loss) per share: Net income (loss) $ (998.4) $ 1,615.4 $ 1,327.9 Weighted average number of shares outstanding 219.5 223.2 227.9 Basic net income (loss) per share $ (4.55) $ 7.24 $ 5.83 Diluted net income (loss) per share: Net income (loss) $ (998.4) $ 1,615.4 $ 1,327.9 Weighted average number of shares outstanding 219.5 223.2 227.9 Dilutive impact of share-based awards (as determined by applying the — 0.9 1.1 Weighted average number of shares and dilutive potential shares 219.5 224.1 229.0 Diluted net income (loss) per share $ (4.55) $ 7.21 $ 5.80 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Cost of sales $ 9.9 $ 8.6 $ 8.2 Selling, general and administrative expenses 26.0 23.1 20.6 Total $ 35.9 $ 31.7 $ 28.8 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Cost of sales $ 22.4 $ 19.7 $ 18.3 Selling, general and administrative expenses 74.3 90.7 61.6 Total stock-based compensation expense $ 96.7 $ 110.4 $ 79.9 Excess tax benefit on stock-based compensation recognized in the provision for income taxes $ 3.9 $ 9.8 $ 8.5 |
Schedule of Restricted Stock Units Activity | The following table summarizes the status of RSUs as of February 3, 2024 and changes during the year then ended: Number of RSUs Weighted Average Grant Date Fair Value Nonvested at January 28, 2023 868,720 $ 123.99 Granted 550,132 141.70 Vested (486,439) 110.56 Forfeited (93,227) 141.20 Nonvested at February 3, 2024 839,186 $ 141.45 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the status of PSUs as of February 3, 2024 and changes during the year then ended: Number of PSUs Weighted Average Grant Date Fair Value Nonvested at January 28, 2023 154,823 $ 125.84 Granted 122,419 129.24 Vested (96,508) 89.81 Forfeited (30,584) 129.29 Nonvested at February 3, 2024 150,150 $ 147.29 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of these awards incorporating the market condition was estimated on the grant date using a Monte Carlo simulation model with the following weighted average assumptions: Fiscal 2023 Expected term (in years) 2.8 Expected stock price volatility 34.5 % Dividend yield — % Risk-free interest rate 3.82 % The weighted average assumptions used in the Black-Scholes option pricing model for the executive stock options granted in fiscal 2023 and the assumptions used for the fiscal 2022 award granted to the Executive Chairmain are as follows: Fiscal 2023 Fiscal 2022 Expected term (in years) 6.0 6.5 Expected stock price volatility 36.3 % 34.1 % Dividend yield — % — % Risk-free interest rate 3.81 % 2.15 % |
Schedule of Stock Option Activity | The following tables summarize information about options outstanding at February 3, 2024 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 at January 28, 2023 2,276,937 $ 156.46 Granted 85,447 137.93 Exercised (1,207) 77.59 Forfeited (1,075) 143.55 Outstanding at February 3, 2024 2,360,102 $ 155.84 8.1 $ 1.5 Exercisable at February 3, 2024 475,810 $ 153.92 7.9 $ 1.1 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Consolidated Statements of Operations Data: Net sales: Dollar Tree $ 16,770.3 $ 15,405.7 $ 13,922.1 Family Dollar 13,811.3 12,912.5 12,387.7 Consolidated net sales $ 30,581.6 $ 28,318.2 $ 26,309.8 Gross profit: Dollar Tree $ 6,008.9 $ 5,775.5 $ 4,603.6 Family Dollar 3,300.7 3,146.4 3,122.3 Consolidated gross profit $ 9,309.6 $ 8,921.9 $ 7,725.9 Operating income (loss): Dollar Tree $ 2,278.8 $ 2,536.0 $ 1,607.0 Family Dollar (2,663.5) 127.5 543.1 Corporate, support and other (497.1) (427.2) (338.7) Consolidated operating income (loss) (881.8) 2,236.3 1,811.4 Interest expense, net 106.8 125.3 178.9 Other expense, net 0.1 0.4 0.3 Income (loss) before income taxes $ (988.7) $ 2,110.6 $ 1,632.2 Depreciation and amortization expense: Dollar Tree $ 370.5 $ 338.8 $ 316.0 Family Dollar 440.4 402.4 369.8 Corporate, support and other 30.4 26.8 30.2 Consolidated depreciation and amortization expense $ 841.3 $ 768.0 $ 716.0 As of (in millions) February 3, 2024 January 28, 2023 Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 423.3 $ 423.6 Family Dollar 490.5 1,559.5 Consolidated goodwill $ 913.8 $ 1,983.1 Total assets: Dollar Tree $ 10,315.9 $ 9,914.6 Family Dollar 11,037.0 12,562.2 Corporate, support and other 670.6 545.3 Consolidated total assets $ 22,023.5 $ 23,022.1 Additions to property, plant and equipment: Dollar Tree $ 993.5 $ 548.7 Family Dollar 995.2 605.2 Corporate, support and other 112.6 94.9 Consolidated additions to property, plant and equipment $ 2,101.3 $ 1,248.8 |
Disaggregation of Revenue | The following table summarizes net sales by merchandise category for our segments: Year Ended (in millions) February 3, 2024 January 28, 2023 January 29, 2022 Dollar Tree segment net sales by Consumable $ 7,915.6 47.2 % $ 6,978.8 45.3 % $ 6,334.5 45.5 % Variety 7,781.4 46.4 % 7,456.3 48.4 % 6,794.0 48.8 % Seasonal 1,073.3 6.4 % 970.6 6.3 % 793.6 5.7 % Total Dollar Tree segment net sales $ 16,770.3 100.0 % $ 15,405.7 100.0 % $ 13,922.1 100.0 % Family Dollar segment net sales by Consumable $ 11,086.1 80.3 % $ 10,036.2 77.7 % $ 9,446.5 76.3 % Home products 930.0 6.7 % 982.5 7.6 % 1,033.9 8.3 % Apparel and accessories 673.4 4.9 % 732.2 5.7 % 781.5 6.3 % Seasonal and electronics 1,121.8 8.1 % 1,161.6 9.0 % 1,125.8 9.1 % Total Family Dollar segment net sales $ 13,811.3 100.0 % $ 12,912.5 100.0 % $ 12,387.7 100.0 % |
Goodwill and Nonamortizing In_2
Goodwill and Nonamortizing Intangible Assets (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024 and January 28, 2023 are as follows: (in millions) Dollar Tree Family Dollar Total Balance at January 29, 2022 $ 424.9 $ 1,559.5 $ 1,984.4 Foreign currency translation adjustments (1.3) — (1.3) Balance at January 28, 2023 423.6 1,559.5 1,983.1 Foreign currency translation adjustments (0.3) — (0.3) Goodwill impairment — (1,069.0) (1,069.0) Balance at February 3, 2024 $ 423.3 $ 490.5 $ 913.8 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 72 Months Ended | |||||
Feb. 03, 2024 USD ($) store state | Feb. 03, 2024 USD ($) segment store state | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Feb. 01, 2020 USD ($) | Feb. 02, 2019 USD ($) | Feb. 03, 2024 USD ($) store state | Jan. 30, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||
Number of retail discount stores | store | 16,700 | 16,700 | 16,700 | |||||
Number of states/provinces the Company operates in | state | 48 | 48 | 48 | |||||
Number of reporting business segments | segment | 2 | |||||||
Money market securities valued at cost, in cash and cash equivalents | $ 304.2 | $ 304.2 | $ 317.2 | $ 304.2 | ||||
Warehousing and distribution costs capitalized into inventory | 299.8 | 299.8 | 298.6 | 299.8 | ||||
Interest costs capitalized | 5.9 | 3.8 | $ 1.1 | |||||
Self-insurance liability | 363.5 | 363.5 | 318.2 | 363.5 | ||||
Self-insurance, restricted cash balances | 72.3 | 72.3 | 68.5 | 72.3 | ||||
Operating lease right-of-use assets | 6,488.3 | 6,488.3 | 6,458 | 6,488.3 | ||||
Operating lease liabilities | 6,960.6 | 6,960.6 | 6,960.6 | |||||
Stockholders' equity | (7,313.1) | (7,313.1) | (8,751.5) | (7,718.5) | (7,313.1) | $ (7,285.3) | ||
Impairment charge for certain store assets | 511.5 | 39.9 | 4.4 | |||||
Operating lease, impairment loss | 358.7 | $ 20.1 | $ 3.9 | |||||
Asset impaiment | $ 14 | |||||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense, Including Impairment Charges | Selling, General and Administrative Expense, Including Impairment Charges | Selling, General and Administrative Expense, Including Impairment Charges | |||||
Advertising costs | $ 109.6 | $ 99.5 | $ 93.9 | |||||
Stock-based compensation expense | 96.7 | 110.4 | 79.9 | |||||
Goodwill impairment | 1,069 | 1,069 | 0 | 0 | ||||
Impairments, excluding goodwill | 1,461.5 | 40 | 4.4 | |||||
Trade Names | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairments, excluding goodwill | 950 | |||||||
Store Portfolio Optimization Review | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment charge for certain store assets | 152.2 | |||||||
Operating lease, impairment loss | 351.7 | |||||||
Asset impaiment | $ 503.9 | |||||||
Family Dollar | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Goodwill impairment | $ 1,069 | $ 313 | $ 2,727 | $ 4,109 | ||||
Buildings | Minimum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life (in years) | 39 years | 39 years | 39 years | |||||
Buildings | Maximum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life (in years) | 40 years | 40 years | 40 years | |||||
Building Improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life (in years) | 20 years | 20 years | 20 years | |||||
Furniture, fixtures and equipment | Minimum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life (in years) | 3 years | 3 years | 3 years | |||||
Furniture, fixtures and equipment | Maximum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life (in years) | 15 years | 15 years | 15 years | |||||
Dollar Tree | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Goodwill impairment | $ 0 | |||||||
Family Dollar | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Goodwill impairment | 1,069 | |||||||
Retained Earnings | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Stockholders' equity | $ (7,124.6) | $ (7,124.6) | $ (8,123) | $ (6,507.6) | $ (7,124.6) | $ (5,179.7) |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | $ 12,775.5 | $ 10,997.6 | |
Less: accumulated depreciation | 6,631.4 | 6,025.4 | |
Total property, plant and equipment, net | 6,144.1 | 4,972.2 | |
Depreciation expense | 819.1 | 737.4 | $ 672 |
Other Current Liabilities | |||
Taxes (other than income taxes) | 292.3 | 253.7 | |
Compensation and benefits | 247.3 | 143.9 | |
Insurance | 143.4 | 131.1 | |
Other | 384.2 | 289 | |
Total other current liabilities | 1,067.2 | 817.7 | |
Land | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 247.9 | 242.6 | |
Buildings | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 1,796.7 | 1,631.6 | |
Leasehold improvements | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 3,646.9 | 3,227.9 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 5,899.2 | 5,261.7 | |
Construction in progress | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | $ 1,184.8 | $ 633.8 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Current taxes: | |||
Federal | $ 222.2 | $ 322 | $ 271.1 |
State | 46.1 | 50.2 | 56.3 |
Foreign | 0 | 0.1 | 0.1 |
Total current taxes | 268.3 | 372.3 | 327.5 |
Deferred taxes: | |||
Federal | (225.3) | 88.1 | 50.3 |
State | (39.2) | 30.3 | (76.5) |
Foreign | 5.9 | 4.5 | 3 |
Total deferred taxes | (258.6) | 122.9 | (23.2) |
Provision for income taxes | $ 9.7 | $ 495.2 | $ 304.3 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
Effect of: | |||
Goodwill impairment | (22.70%) | 0% | 0% |
State and local income taxes, net of federal income tax benefit | (1.00%) | 3.70% | 3.70% |
Non-deductible expenses | (1.00%) | 0.10% | 0.10% |
Work Opportunity Tax Credit | 3% | (1.40%) | (1.80%) |
Deferred tax rate change | 0% | 0.70% | (3.80%) |
Other, net | (0.30%) | (0.60%) | (0.60%) |
Effective tax rate | (1.00%) | 23.50% | 18.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 72 Months Ended | ||||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2024 | |
Income Tax Contingency [Line Items] | |||||||
Operating loss carryforward, credit carryforward and capital loss carryforward | $ 72.8 | $ 72.8 | $ 72.8 | ||||
Valuation allowance | 17.3 | 17.3 | $ 4 | 17.3 | |||
Unrecognized tax benefits | 22 | 22 | 17.4 | $ 20.9 | 22 | ||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 17.4 | 17.4 | 17.4 | ||||
Liability for potential interest and penalties | 2.5 | 2.5 | 2.5 | ||||
Goodwill impairment | 1,069 | $ 1,069 | $ 0 | $ 0 | |||
Family Dollar | |||||||
Income Tax Contingency [Line Items] | |||||||
Goodwill impairment | $ 1,069 | $ 313 | $ 2,727 | $ 4,109 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Deferred tax assets: | ||
Operating lease liabilities | $ 1,800.4 | $ 1,703.5 |
Net operating losses, interest expense and credit carryforwards | 72.8 | 69.3 |
Accrued expenses | 35.7 | 31 |
Accrued compensation expense | 39.3 | 33.9 |
State tax election | 13.1 | 14.3 |
Other | 4.7 | 2.5 |
Total deferred tax assets | 1,966 | 1,854.5 |
Valuation allowance | (17.3) | (4) |
Deferred tax assets, net | 1,948.7 | 1,850.5 |
Deferred tax liabilities: | ||
Operating lease ROU assets | (1,639.7) | (1,630.9) |
Other intangibles | (529.1) | (760.4) |
Property and equipment | (571.8) | (509.2) |
Prepaids | (35.8) | (25.9) |
Inventory | (4.4) | (14.8) |
Total deferred tax liabilities | (2,780.8) | (2,941.2) |
Deferred income taxes, net | $ (832.1) | $ (1,090.7) |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning Balance | $ 17.4 | $ 20.9 |
Additions for tax positions of prior years | 5.6 | 2.3 |
Additions, based on tax positions related to current year | 2.3 | 4 |
Settlements | (0.3) | (0.1) |
Lapses in statutes of limitation | (3) | (9.7) |
Ending balance | $ 22 | $ 17.4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 18 Months Ended | ||||
Mar. 01, 2022 USD ($) | Feb. 22, 2022 lawsuit | Feb. 03, 2024 USD ($) | Apr. 29, 2023 USD ($) | Feb. 03, 2024 USD ($) personalInjuryCase | Apr. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Letters of credit | $ 425,000,000 | $ 425,000,000 | ||||
Number of class action lawsuits | lawsuit | 14 | |||||
Damages awarded, value per gift certificate | $ 25 | |||||
Loss Contingency, Number Of Personal Injury Cases | personalInjuryCase | 50 | |||||
DC 202 Related Matters | Plea Agreement Fines | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Damages Paid, Value | $ 200,000 | |||||
DC 202 Related Matters | Plea Agreement, Forfeiture Money Judgement | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Damages Paid, Value | $ 41,475,000 | |||||
Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual during period | 26,700,000 | $ 30,000,000 | ||||
Loss contingency accrual | 56,700,000 | $ 56,700,000 | ||||
Ocean Shipping Contracts | ||||||
Loss Contingencies [Line Items] | ||||||
Total commitment | 190,900,000 | 190,900,000 | ||||
Software Licenses And Support, Telecommunication Services And Store Technology Assets And Maintenance | ||||||
Loss Contingencies [Line Items] | ||||||
Total commitment | 364,200,000 | 364,200,000 | ||||
Letters Of Credit For Routine Purchases Of Imported Merchandise | ||||||
Loss Contingencies [Line Items] | ||||||
Committed to letters of credit | 133,200,000 | 133,200,000 | ||||
Surety Bond | ||||||
Loss Contingencies [Line Items] | ||||||
Surety bonds | $ 159,100,000 | $ 159,100,000 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt - Summary Of Long-term Debt (Details) - USD ($) | Feb. 03, 2024 | Jan. 28, 2023 | Dec. 01, 2021 | Apr. 19, 2018 |
Debt Instrument [Line Items] | ||||
Total Short-Term Borrowings | $ 0 | $ 0 | ||
Long-term debt | 3,450,000,000 | |||
Debt discount and issuance costs | (23,700,000) | (28,400,000) | ||
Total | 3,426,300,000 | 3,421,600,000 | ||
Less: Current portion | 0 | 0 | ||
Non-current portion of long-term debt | 3,426,300,000 | 3,421,600,000 | ||
Borrowing capacity | 425,000,000 | |||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 0 | 0 | ||
4.00% Senior Notes, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 4% | |||
4.20% Senior Notes, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Stated percentage | 4.20% | |||
$1.5B Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 0 | 0 | ||
Borrowing capacity | 1,500,000,000 | |||
Senior Notes | 4.00% Senior Notes, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,000,000,000 | 1,000,000,000 | ||
Stated percentage | 4% | 4% | ||
Senior Notes | 4.20% Senior Notes, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,250,000,000 | 1,250,000,000 | ||
Stated percentage | 4.20% | 4.20% | ||
Senior Notes | 2.65% Senior Notes, due 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 800,000,000 | 800,000,000 | ||
Stated percentage | 2.65% | 2.65% | ||
Senior Notes | 3.375% Senior Notes, due 2051 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 400,000,000 | $ 400,000,000 | ||
Stated percentage | 3.375% | 3.375% |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt - Summary of Maturities of Long-term Debt (Details) $ in Millions | Feb. 03, 2024 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 0 |
2025 | 1,000 |
2026 | 0 |
2027 | 0 |
2028 | 1,250 |
Thereafter | 1,200 |
Total | $ 3,450 |
Short-Term Borrowings and Lon_5
Short-Term Borrowings and Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 01, 2021 | Apr. 19, 2018 | Jan. 28, 2023 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jul. 31, 2023 | Dec. 08, 2021 | |
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 425,000,000 | |||||||
Proceeds from revolving credit facility | 0 | $ 555,000,000 | $ 0 | |||||
Redemption premium | $ 43,800,000 | |||||||
Amortizable non-cash deferred financing costs | 2,700,000 | |||||||
Long-term debt | 3,421,600,000 | 3,426,300,000 | 3,421,600,000 | |||||
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% | |||||||
4.20% Senior Notes, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated percentage | 4.20% | |||||||
Line of Credit | $1.5B Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 1,500,000,000 | |||||||
Letters of credit | 4,400,000 | $ 4,100,000 | $ 4,400,000 | |||||
Interest rate at period end | 6.55% | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 350,000,000 | |||||||
Line of Credit | $1.5B Revolving Credit Facility | SOFR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.125% | |||||||
Senior Notes | Senior Floating Rate Notes Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed in event of change of control | 101% | |||||||
Senior Notes | Fixed Rate Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 100% | |||||||
Senior Notes | 3.70% Senior Notes, Due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,000,000,000 | |||||||
Stated percentage | 3.70% | |||||||
Redemption of debt | $ 1,000,000,000 | |||||||
Senior Notes | 4.00% Senior Notes, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,000,000,000 | |||||||
Stated percentage | 4% | 4% | ||||||
Senior Notes | 4.20% Senior Notes, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,250,000,000 | |||||||
Stated percentage | 4.20% | 4.20% | ||||||
Senior Notes | 2.65% Senior Notes, due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 800,000,000 | |||||||
Stated percentage | 2.65% | 2.65% | ||||||
Percentage of principal amount redeemed | 100% | |||||||
Percentage of principal amount redeemed in event of change of control | 101% | |||||||
Senior Notes | 3.375% Senior Notes, due 2051 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 400,000,000 | |||||||
Stated percentage | 3.375% | 3.375% | ||||||
Commercial Paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-Term Debt, Term | 397 days | |||||||
Principal amount of debt | $ 1,070,500,000 | $ 1,500,000,000 | ||||||
Interest Expense, Debt | 2,600,000 | |||||||
Long-term debt | $ 0 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 1,713 | $ 1,652.8 | $ 1,602.8 |
Variable lease cost | 450.3 | 428.8 | 417.8 |
Short-term lease cost | 20 | 10.8 | 5.6 |
Total lease cost | $ 2,183.3 | $ 2,092.4 | $ 2,026.2 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Feb. 03, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 1,622.3 |
2025 | 1,572.2 |
2026 | 1,336.3 |
2027 | 1,074.3 |
2028 | 786.4 |
Thereafter | 1,499.5 |
Total undiscounted lease payments | 7,891 |
Less interest | 930.4 |
Present value of lease liabilities | $ 6,960.6 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Leases [Abstract] | ||
Lease signed but not yet commenced | $ 415.7 | |
Lessee, Lease, Description [Line Items] | ||
Property, plant and equipment | $ 6,144.1 | $ 4,972.2 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases [Abstract] | |||
Weighted-average remaining lease term (years) | 5 years 8 months 12 days | 5 years 8 months 12 days | 5 years 10 months 24 days |
Weighted-average discount rate | 4.10% | 3.60% | 3.40% |
Operating cash flows from operating leases | $ 1,852.1 | $ 1,559.7 | $ 1,579.8 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - Fair value, inputs, level 1 - Senior Notes - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 3,140 | $ 3,162.8 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 3,430.1 | $ 3,426.7 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
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 | ||
Preferred Stock, shares issued (in shares) | 0 | 0 | |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | |
Class of Stock [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,900,000 | 3,000,000 | |
Payments for repurchase of common stock | $ 500 | $ 647.5 | $ 950 |
Total repurchase authorization | $ 2,500 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 3,900,000 | 4,600,000 | 9,200,000 |
Share Repurchase Programs | |||
Class of Stock [Line Items] | |||
Remaining amount authorized to be repurchased | $ 1,350 | ||
Share Repurchase Programs | Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 3,905,599 | 4,613,696 | 9,156,898 |
Payments for repurchase of common stock | $ 504.3 | $ 647.5 | $ 950 |
Shareholders' Equity - Basic an
Shareholders' Equity - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Basic net income (loss) per share: | |||
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Weighted average number of shares outstanding (in shares) | 219.5 | 223.2 | 227.9 |
Basic net income per share (usd per share) | $ (4.55) | $ 7.24 | $ 5.83 |
Diluted net income (loss) per share: | |||
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Weighted average number of shares outstanding (in shares) | 219.5 | 223.2 | 227.9 |
Dilutive effect of stock options and restricted stock (as determined by applying the treasury stock method) (in shares) | 0 | 0.9 | 1.1 |
Weighted average number of shares and dilutive potential shares outstanding (in shares) | 219.5 | 224.1 | 229 |
Diluted net income per share (usd per share) | $ (4.55) | $ 7.21 | $ 5.80 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculations of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Weighted average number of shares outstanding (in shares) | 219.5 | 223.2 | 227.9 |
Earnings Per Share, Basic | $ (4.55) | $ 7.24 | $ 5.83 |
Net income (loss) | $ (998.4) | $ 1,615.4 | $ 1,327.9 |
Dilutive effect of stock options and restricted stock (as determined by applying the treasury stock method) (in shares) | 0 | 0.9 | 1.1 |
Weighted Average Number of Shares Outstanding, Diluted | 219.5 | 224.1 | 229 |
Diluted net income per share (usd per share) | $ (4.55) | $ 7.21 | $ 5.80 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.9 | 3 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 USD ($) year hour | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Age over which all employees have 401K benefits available | year | 18 | ||
Percent of match | 5% | ||
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 | $ 35.9 | $ 31.7 | $ 28.8 |
Cost of sales | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan expenses | 9.9 | 8.6 | 8.2 |
Selling, general and administrative expenses | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan expenses | $ 26 | $ 23.1 | $ 20.6 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 19, 2022 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jun. 10, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period (in shares) | 85,447 | ||||
Aggregate intrinsic value of options outstanding | $ 1.5 | ||||
Stock option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of recognition (in months) | 3 years 1 month 6 days | ||||
Aggregate intrinsic value of options outstanding | $ 4.9 | ||||
Term | 10 years | ||||
Vesting period | 3 years | ||||
Intrinsic value of options exercised | $ 0.1 | $ 0.1 | $ 5.6 | ||
Unrecognized compensation expense | $ 87.5 | ||||
Stock option | Board of Directors Chairman | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 6 years | 6 years 6 months | |||
Grants in period (in shares) | 2,252,587 | ||||
Aggregate intrinsic value of options outstanding | $ 135.6 | ||||
Executive agreement term | 5 years | ||||
Term | 10 years | ||||
Vesting period | 5 years | ||||
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 | $ 53.8 | $ 51.5 | $ 56.8 | ||
Weighted average grant date fair value (dollars per share) | $ 141.70 | $ 158.05 | $ 109.01 | ||
Unrecognized compensation expense | $ 65.9 | ||||
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] | |||||
Expected term (in years) | 2 years 9 months 18 days | ||||
Service period | 3 years | ||||
Total fair value of vested instruments other than options | $ 8.7 | $ 44.5 | $ 17.3 | ||
Weighted average grant date fair value (dollars per share) | $ 129.24 | $ 159.57 | $ 95.04 | ||
Unrecognized compensation expense | $ 3.7 | ||||
Weighted average period of recognition (in months) | 1 year 1 month 6 days | ||||
Vesting period | 3 years | ||||
2011 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 4,000,000 | ||||
2021 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 6,500,000 | ||||
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% | ||||
Director Deferred Compensation Plan | Stock option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 10 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 96.7 | $ 110.4 | $ 79.9 |
Excess tax benefit on stock-based compensation recognized in the provision for income taxes | 3.9 | 9.8 | 8.5 |
Cost of sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 22.4 | 19.7 | 18.3 |
Selling, general and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 74.3 | $ 90.7 | $ 61.6 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted Stock Units (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Number of RSUs | |||
Nonvested, beginning of period (shares) | 868,720 | ||
Granted (shares) | 550,132 | ||
Vested (shares) | (486,439) | ||
Forfeited (shares) | (93,227) | ||
Nonvested, end of period (shares) | 839,186 | 868,720 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, beginning of period (dollars per share) | $ 123.99 | ||
Granted (dollars per share) | 141.70 | $ 158.05 | $ 109.01 |
Vested (dollars per share) | 110.56 | ||
Forfeited (dollars per share) | 141.20 | ||
Nonvested, end of period (dollars per share) | $ 141.45 | $ 123.99 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Performance Stock Units (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Number of RSUs | |||
Nonvested, beginning of period (shares) | 154,823 | ||
Granted (shares) | 122,419 | ||
Vested (shares) | (96,508) | ||
Forfeited (shares) | (30,584) | ||
Nonvested, end of period (shares) | 150,150 | 154,823 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, beginning of period (dollars per share) | $ 125.84 | ||
Granted (dollars per share) | 129.24 | $ 159.57 | $ 95.04 |
Vested (dollars per share) | 89.81 | ||
Forfeited (dollars per share) | 129.29 | ||
Nonvested, end of period (dollars per share) | $ 147.29 | $ 125.84 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Fair Value Assumptions (Details) | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Stock option | Board of Directors Chairman | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | 6 years 6 months |
Expected stock price volatility | 36.30% | 34.10% |
Dividend yield | 0% | 0% |
Risk-free interest rate | 3.81% | 2.15% |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years 9 months 18 days | |
Expected stock price volatility | 34.50% | |
Dividend yield | 0% | |
Risk-free interest rate | 3.82% |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Stock Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Feb. 03, 2024 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 2,276,937 |
Options granted (in shares) | shares | 85,447 |
Exercised (in shares) | shares | (1,207) |
Forfeited (in shares) | shares | (1,075) |
Outstanding, ending balance (in shares) | shares | 2,360,102 |
Options vested and exercisable (in shares) | shares | 475,810 |
Weighted Average Per Share Exercise Price | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 156.46 |
Granted (dollars per share) | $ / shares | 137.93 |
Exercised (dollars per share) | $ / shares | 77.59 |
Forfeited (dollars per share) | $ / shares | 143.55 |
Outstanding, ending balance (dollars per share) | $ / shares | 155.84 |
Options vested and exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 153.92 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Term, Outstanding | 8 years 1 month 6 days |
Weighted Average Remaining Term, vested and exercisable | 7 years 10 months 24 days |
Aggregate intrinsic value of options outstanding | $ | $ 1.5 |
Aggregate intrinsic value, vested and expected to vest options | $ | $ 1.1 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue - Narrative (Details) | 12 Months Ended |
Feb. 03, 2024 segment province store state | |
Segment Reporting Information [Line Items] | |
Number of retail discount stores | store | 16,700 |
Number of states/provinces the Company operates in | state | 48 |
Number of reporting business segments | segment | 2 |
Canada | |
Segment Reporting Information [Line Items] | |
Number of states/provinces the Company operates in | province | 5 |
Segments and Disaggregated Re_4
Segments and Disaggregated Revenue - Information For Segments and Corporate and Support (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Condensed Consolidated Income Statement Data: | |||
Net sales | $ 30,581.6 | $ 28,318.2 | $ 26,309.8 |
Gross profit | 9,309.6 | 8,921.9 | 7,725.9 |
Operating income (loss) | (881.8) | 2,236.3 | 1,811.4 |
Interest expense, net | 106.8 | 125.3 | 178.9 |
Other expense, net | 0.1 | 0.4 | 0.3 |
Income (loss) before income taxes | (988.7) | 2,110.6 | 1,632.2 |
Depreciation and amortization expense: | 841.3 | 768 | 716 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 913.8 | 1,983.1 | 1,984.4 |
Total assets: | 22,023.5 | 23,022.1 | |
Additions to property, plant and equipment: | 2,101.3 | 1,248.8 | 1,021.2 |
Corporate, support and other | |||
Condensed Consolidated Income Statement Data: | |||
Operating income (loss) | (497.1) | (427.2) | (338.7) |
Depreciation and amortization expense: | 30.4 | 26.8 | 30.2 |
Condensed Consolidated Balance Sheet Data: | |||
Total assets: | 670.6 | 545.3 | |
Additions to property, plant and equipment: | 112.6 | 94.9 | |
Dollar Tree | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 16,770.3 | 15,405.7 | 13,922.1 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 423.3 | 423.6 | 424.9 |
Dollar Tree | Operating segments | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 16,770.3 | 15,405.7 | 13,922.1 |
Gross profit | 6,008.9 | 5,775.5 | 4,603.6 |
Operating income (loss) | 2,278.8 | 2,536 | 1,607 |
Depreciation and amortization expense: | 370.5 | 338.8 | 316 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 423.3 | 423.6 | |
Total assets: | 10,315.9 | 9,914.6 | |
Additions to property, plant and equipment: | 993.5 | 548.7 | |
Family Dollar | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 13,811.3 | 12,912.5 | 12,387.7 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 490.5 | 1,559.5 | 1,559.5 |
Family Dollar | Operating segments | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 13,811.3 | 12,912.5 | 12,387.7 |
Gross profit | 3,300.7 | 3,146.4 | 3,122.3 |
Operating income (loss) | (2,663.5) | 127.5 | 543.1 |
Depreciation and amortization expense: | 440.4 | 402.4 | $ 369.8 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 490.5 | 1,559.5 | |
Total assets: | 11,037 | 12,562.2 | |
Additions to property, plant and equipment: | $ 995.2 | $ 605.2 |
Segments and Disaggregated Re_5
Segments and Disaggregated Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 30,581.6 | $ 28,318.2 | $ 26,309.8 |
Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 16,770.3 | 15,405.7 | 13,922.1 |
Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 13,811.3 | $ 12,912.5 | $ 12,387.7 |
Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
Consumable | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 7,915.6 | $ 6,978.8 | $ 6,334.5 |
Consumable | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 11,086.1 | $ 10,036.2 | $ 9,446.5 |
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 47.20% | 45.30% | 45.50% |
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 80.30% | 77.70% | 76.30% |
Variety | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 7,781.4 | $ 7,456.3 | $ 6,794 |
Variety | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 46.40% | 48.40% | 48.80% |
Seasonal | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 1,073.3 | $ 970.6 | $ 793.6 |
Seasonal | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 6.40% | 6.30% | 5.70% |
Home products | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 930 | $ 982.5 | $ 1,033.9 |
Home products | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 6.70% | 7.60% | 8.30% |
Apparel and accessories | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 673.4 | $ 732.2 | $ 781.5 |
Apparel and accessories | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 4.90% | 5.70% | 6.30% |
Seasonal and electronics | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 1,121.8 | $ 1,161.6 | $ 1,125.8 |
Seasonal and electronics | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 8.10% | 9% | 9.10% |
Supply Chain Finance Program (D
Supply Chain Finance Program (Details) $ in Millions | Feb. 03, 2024 USD ($) |
Payables and Accruals [Abstract] | |
Outstanding payment obligation | $ 11.8 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts Payable, Current |
Goodwill and Nonamortizing In_3
Goodwill and Nonamortizing Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 72 Months Ended | ||||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2024 | |
Goodwill [Line Items] | |||||||
Impairments, excluding goodwill | $ 1,461.5 | $ 40 | $ 4.4 | ||||
Goodwill impairment | $ 1,069 | $ 1,069 | $ 0 | $ 0 | |||
Trade Names | |||||||
Goodwill [Line Items] | |||||||
Impairments, excluding goodwill | 950 | ||||||
Family Dollar | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | $ 1,069 | $ 313 | $ 2,727 | $ 4,109 |
Goodwill and Nonamortizing In_4
Goodwill and Nonamortizing Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | $ 1,983.1 | $ 1,984.4 | ||
Foreign currency translation adjustments | (0.3) | (1.3) | ||
Goodwill impairment | $ (1,069) | (1,069) | 0 | $ 0 |
Goodwill ending balance | 913.8 | 913.8 | 1,983.1 | 1,984.4 |
Dollar Tree | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 423.6 | 424.9 | ||
Foreign currency translation adjustments | (0.3) | (1.3) | ||
Goodwill impairment | 0 | |||
Goodwill ending balance | 423.3 | 423.3 | 423.6 | 424.9 |
Family Dollar | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 1,559.5 | 1,559.5 | ||
Foreign currency translation adjustments | 0 | 0 | ||
Goodwill impairment | (1,069) | |||
Goodwill ending balance | $ 490.5 | $ 490.5 | $ 1,559.5 | $ 1,559.5 |
Store Portfolio Optimization _2
Store Portfolio Optimization Review (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2024 USD ($) store | Feb. 03, 2024 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 14 | |||
Impairment charge for certain store assets | 511.5 | $ 39.9 | $ 4.4 | |
Store Portfolio Optimization Review | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 503.9 | |||
Impairment charge for certain store assets | 152.2 | |||
Consulting fees | 4.3 | |||
Store Portfolio Optimization Review | Family Dollar | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of store closures | store | 970 | |||
Store Portfolio Optimization Review | Dollar Tree | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of store closures | store | 30 | |||
Store Portfolio Optimization Review | Inventory Write-down | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost remaining | $ 80.6 | 80.6 | ||
Store Portfolio Optimization Review | Capitalized Distribution Cost Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost remaining | $ 5.6 | $ 5.6 | ||
Store Portfolio Optimization Review, Activities In 2024 | Family Dollar | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of store closures | store | 600 | |||
Store Portfolio Optimization Review, Activities At End Of Lease Term | Family Dollar | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of store closures | store | 370 |