Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jan. 31, 2014 | Mar. 13, 2014 | Aug. 02, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'DOLLAR GENERAL CORP | ' | ' |
Entity Central Index Key | '0000029534 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Jan-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--01-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $18.01 |
Entity Common Stock, Shares Outstanding | ' | 313,596,983 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2014 | Feb. 01, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $505,566 | $140,809 |
Merchandise inventories | 2,552,993 | 2,397,175 |
Prepaid expenses and other current assets | 147,048 | 139,129 |
Total current assets | 3,205,607 | 2,677,113 |
Net property and equipment | 2,080,305 | 2,088,665 |
Goodwill | 4,338,589 | 4,338,589 |
Other intangible assets, net | 1,207,645 | 1,219,543 |
Other assets, net | 35,378 | 43,772 |
Total assets | 10,867,524 | 10,367,682 |
Current liabilities: | ' | ' |
Current portion of long-term obligations | 75,966 | 892 |
Accounts payable | 1,286,484 | 1,261,607 |
Accrued expenses and other | 368,578 | 357,438 |
Income taxes payable | 59,148 | 95,387 |
Deferred income taxes | 21,795 | 23,223 |
Total current liabilities | 1,811,971 | 1,738,547 |
Long-term obligations | 2,742,788 | 2,771,336 |
Deferred income taxes | 614,026 | 647,070 |
Other liabilities | 296,546 | 225,399 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, 1,000 shares authorized | ' | ' |
Common stock; $0.875 par value, 1,000,000 shares authorized, 317,058 and 327,069 shares issued and outstanding at January 31, 2014 and February 1, 2013, respectively | 277,424 | 286,185 |
Additional paid-in capital | 3,009,226 | 2,991,351 |
Retained earnings | 2,125,453 | 1,710,732 |
Accumulated other comprehensive loss | -9,910 | -2,938 |
Total shareholders' equity | 5,402,193 | 4,985,330 |
Total liabilities and shareholders' equity | $10,867,524 | $10,367,682 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2014 | Feb. 01, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, shares authorized | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $0.88 | $0.88 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 317,058 | 327,069 |
Common stock, shares outstanding | 317,058 | 327,069 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' |
Net sales | $17,504,167 | $16,022,128 | $14,807,188 |
Cost of goods sold | 12,068,425 | 10,936,727 | 10,109,278 |
Gross profit | 5,435,742 | 5,085,401 | 4,697,910 |
Selling, general and administrative expenses | 3,699,557 | 3,430,125 | 3,207,106 |
Operating profit | 1,736,185 | 1,655,276 | 1,490,804 |
Interest expense | 88,984 | 127,926 | 204,900 |
Other (income) expense | 18,871 | 29,956 | 60,615 |
Income before income taxes | 1,628,330 | 1,497,394 | 1,225,289 |
Income tax expense | 603,214 | 544,732 | 458,604 |
Net income | $1,025,116 | $952,662 | $766,685 |
Earnings per share: | ' | ' | ' |
Basic (in dollars per share) | $3.17 | $2.87 | $2.25 |
Diluted (in dollars per share) | $3.17 | $2.85 | $2.22 |
Weighted average shares: | ' | ' | ' |
Basic (in shares) | 322,886 | 332,254 | 341,234 |
Diluted (in shares) | 323,854 | 334,469 | 345,117 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $1,025,116 | $952,662 | $766,685 |
Unrealized net gain (loss) on hedged transactions, net of related income tax expense (benefit) of $(4,461), $1,448 and $9,692, respectively | -6,972 | 2,253 | 15,105 |
Comprehensive income | $1,018,144 | $954,915 | $781,790 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Income tax expense (benefit) on unrealized net gain (loss) on hedged transactions | ($4,461) | $1,448 | $9,692 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | |||||
Balances at Jan. 28, 2011 | $4,063,632 | $298,819 | $2,954,177 | $830,932 | ($20,296) |
Balances (in shares) at Jan. 28, 2011 | ' | 341,507,000 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 766,685 | ' | ' | 766,685 | ' |
Unrealized net gain (loss) on hedged transactions | 15,105 | ' | ' | ' | 15,105 |
Share-based compensation expense | 15,250 | ' | 15,250 | ' | ' |
Repurchases of common stock | -186,597 | -4,340 | -1,558 | -180,699 | ' |
Repurchases of common stock (in shares) | ' | -4,960,000 | ' | ' | ' |
Tax benefit from stock option exercises | 27,727 | ' | 27,727 | ' | ' |
Exercise of share-based awards | -27,392 | 1,342 | -28,734 | ' | ' |
Exercise of share-based awards (in shares) | ' | 1,534,000 | ' | ' | ' |
Other equity transactions | 172 | 7 | 165 | ' | ' |
Other equity transactions (in shares) | ' | 8,000 | ' | ' | ' |
Balances at Feb. 03, 2012 | 4,674,582 | 295,828 | 2,967,027 | 1,416,918 | -5,191 |
Balances (in shares) at Feb. 03, 2012 | ' | 338,089,000 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 952,662 | ' | ' | 952,662 | ' |
Unrealized net gain (loss) on hedged transactions | 2,253 | ' | ' | ' | 2,253 |
Share-based compensation expense | 21,664 | ' | 21,664 | ' | ' |
Repurchases of common stock | -671,459 | -12,595 | -16 | -658,848 | ' |
Repurchases of common stock (in shares) | ' | -14,394,000 | ' | ' | ' |
Tax benefit from stock option exercises | 77,020 | ' | 77,020 | ' | ' |
Exercise of share-based awards | -73,120 | 2,667 | -75,787 | ' | ' |
Exercise of share-based awards (in shares) | ' | 3,048,000 | ' | ' | ' |
Other equity transactions | 1,728 | 285 | 1,443 | ' | ' |
Other equity transactions (in shares) | ' | 326,000 | ' | ' | ' |
Balances at Feb. 01, 2013 | 4,985,330 | 286,185 | 2,991,351 | 1,710,732 | -2,938 |
Balances (in shares) at Feb. 01, 2013 | 327,069,000 | 327,069,000 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 1,025,116 | ' | ' | 1,025,116 | ' |
Unrealized net gain (loss) on hedged transactions | -6,972 | ' | ' | ' | -6,972 |
Share-based compensation expense | 20,961 | ' | 20,961 | ' | ' |
Repurchases of common stock | -620,052 | -9,657 | ' | -610,395 | ' |
Repurchases of common stock (in shares) | ' | -11,037,000 | ' | ' | ' |
Tax benefit from stock option exercises | 24,151 | ' | 24,151 | ' | ' |
Exercise of share-based awards | -26,341 | 896 | -27,237 | ' | ' |
Exercise of share-based awards (in shares) | ' | 1,026,000 | ' | ' | ' |
Balances at Jan. 31, 2014 | $5,402,193 | $277,424 | $3,009,226 | $2,125,453 | ($9,910) |
Balances (in shares) at Jan. 31, 2014 | 317,058,000 | 317,058,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $1,025,116 | $952,662 | $766,685 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 332,837 | 302,911 | 275,408 |
Deferred income taxes | -36,851 | -2,605 | 10,232 |
Tax benefit of share-based awards | -30,990 | -87,752 | -33,102 |
Loss on debt retirement, net | 18,871 | 30,620 | 60,303 |
Noncash share-based compensation | 20,961 | 21,664 | 15,250 |
Other noncash (gains) and losses | -12,747 | 6,774 | 54,190 |
Change in operating assets and liabilities: | ' | ' | ' |
Merchandise inventories | -144,943 | -391,409 | -291,492 |
Prepaid expenses and other current assets | -4,947 | 5,553 | -34,554 |
Accounts payable | 36,942 | 194,035 | 104,442 |
Accrued expenses and other liabilities | 16,265 | -36,741 | 71,763 |
Income taxes | -5,249 | 138,711 | 51,550 |
Other | -2,200 | -3,071 | -195 |
Net cash provided by (used in) operating activities | 1,213,065 | 1,131,352 | 1,050,480 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -538,444 | -571,596 | -514,861 |
Proceeds from sales of property and equipment | 288,466 | 1,760 | 1,026 |
Net cash provided by (used in) investing activities | -249,978 | -569,836 | -513,835 |
Cash flows from financing activities: | ' | ' | ' |
Issuance of long-term obligations | 2,297,177 | 500,000 | ' |
Repayments of long-term obligations | -2,119,991 | -478,255 | -911,951 |
Borrowings under revolving credit facilities | 1,172,900 | 2,286,700 | 1,157,800 |
Repayments of borrowings under revolving credit facilities | -1,303,800 | -2,184,900 | -973,100 |
Debt issuance costs | -15,996 | -15,278 | ' |
Payments for cash flow hedge related to debt issuance | -13,217 | ' | ' |
Repurchases of common stock | -620,052 | -671,459 | -186,597 |
Other equity transactions, net of employee taxes paid | -26,341 | -71,393 | -27,219 |
Tax benefit of share-based awards | 30,990 | 87,752 | 33,102 |
Net cash provided by (used in) financing activities | -598,330 | -546,833 | -907,965 |
Net increase (decrease) in cash and cash equivalents | 364,757 | 14,683 | -371,320 |
Cash and cash equivalents, beginning of year | 140,809 | 126,126 | 497,446 |
Cash and cash equivalents, end of year | 505,566 | 140,809 | 126,126 |
Cash paid for: | ' | ' | ' |
Interest | 73,464 | 121,712 | 209,351 |
Income taxes | 646,811 | 422,333 | 382,294 |
Supplemental schedule of noncash investing and financing activities: | ' | ' | ' |
Purchases of property and equipment awaiting processing for payment, included in Accounts payable | 27,082 | 39,147 | 35,662 |
Purchases of property and equipment under capital lease obligations | ' | $3,440 | ' |
Basis_of_presentation_and_acco
Basis of presentation and accounting policies | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Basis of presentation and accounting policies | ' | |||||||||
Basis of presentation and accounting policies | ' | |||||||||
1. Basis of presentation and accounting policies | ||||||||||
Basis of presentation | ||||||||||
These notes contain references to the years 2013, 2012, and 2011, which represent fiscal years ended January 31, 2014, February 1, 2013, and February 3, 2012, respectively. The Company's fiscal year ends on the Friday closest to January 31. The 2013 and 2012 years were 52-week accounting periods, while 2011 was a 53-week accounting period. The consolidated financial statements include all subsidiaries of the Company, except for its not-for-profit subsidiary which the Company does not control. Intercompany transactions have been eliminated. | ||||||||||
The Company sells general merchandise on a retail basis through 11,132 stores (as of January 31, 2014) in 40 states covering most of the southern, southwestern, midwestern and eastern United States. The Company owns distribution centers ("DCs") in Scottsville, Kentucky; South Boston, Virginia; Alachua, Florida; Zanesville, Ohio; Jonesville, South Carolina; Marion, Indiana; Bessemer, Alabama; and Bethel, Pennsylvania, and leases DCs in Ardmore, Oklahoma; Fulton, Missouri; Indianola, Mississippi; and Lebec, California. | ||||||||||
Cash and cash equivalents | ||||||||||
Cash and cash equivalents include highly liquid investments with insignificant interest rate risk and original maturities of three months or less when purchased. Such investments primarily consist of money market funds, bank deposits, certificates of deposit (which may include foreign time deposits), and commercial paper. The carrying amounts of these items are a reasonable estimate of their fair value due to the short maturity of these investments. | ||||||||||
Payments due from processors for electronic tender transactions classified as cash and cash equivalents totaled approximately $44.0 million and $45.2 million at January 31, 2014 and February 1, 2013, respectively. | ||||||||||
At January 31, 2014, the Company maintained cash balances to meet a $20 million minimum threshold set by insurance regulators, as further described below under "Insurance liabilities." | ||||||||||
Investments in debt and equity securities | ||||||||||
The Company accounts for investments in debt and marketable equity securities as held-to-maturity, available-for-sale, or trading, depending on their classification. Debt securities categorized as held-to-maturity are stated at amortized cost. Debt and equity securities categorized as available-for-sale are stated at fair value, with any unrealized gains and losses, net of deferred income taxes, reported as a component of Accumulated other comprehensive loss. Trading securities (primarily mutual funds held pursuant to deferred compensation and supplemental retirement plans, as further discussed below in Notes 6 and 9) are stated at fair value, with changes in fair value recorded as a component of Selling, general and administrative ("SG&A") expense. | ||||||||||
For the years ended January 31, 2014, February 1, 2013, and February 3, 2012, gross realized gains and losses on the sales of available-for-sale securities were not material. The cost of securities sold is based upon the specific identification method. | ||||||||||
Merchandise inventories | ||||||||||
Inventories are stated at the lower of cost or market with cost determined using the retail last-in, first-out ("LIFO") method as this method results in a better matching of costs and revenues. Under the Company's retail inventory method ("RIM"), the calculation of gross profit and the resulting valuation of inventories at cost are computed by applying a calculated cost-to-retail inventory ratio to the retail value of sales at a department level. The use of the RIM will result in valuing inventories at the lower of cost or market ("LCM") if markdowns are currently taken as a reduction of the retail value of inventories. Costs directly associated with warehousing and distribution are capitalized into inventory. | ||||||||||
The excess of current cost over LIFO cost was approximately $90.9 million and $101.9 million at January 31, 2014 and February 1, 2013, respectively. Current cost is determined using the RIM on a first-in, first-out basis. Under the LIFO inventory method, the impacts of rising or falling market price changes increase or decrease cost of sales (the LIFO provision or benefit). The Company recorded a LIFO provision (benefit) of $(11.0) million in 2013, $1.4 million in 2012, and $47.7 million in 2011, which is included in cost of goods sold in the consolidated statements of income. | ||||||||||
The Company purchases its merchandise from a wide variety of suppliers. Approximately 8% and 7% of the Company's purchases in 2013 were made from the Company's largest and second largest suppliers, respectively. | ||||||||||
Vendor rebates | ||||||||||
The Company accounts for all cash consideration received from vendors in accordance with applicable accounting standards pertaining to such arrangements. Cash consideration received from a vendor is generally presumed to be a rebate or an allowance and is accounted for as a reduction of merchandise purchase costs as earned. However, certain specific, incremental and otherwise qualifying SG&A expenses related to the promotion or sale of vendor products may be offset by cash consideration received from vendors, in accordance with arrangements such as cooperative advertising, when earned for dollar amounts up to but not exceeding actual incremental costs. | ||||||||||
Prepaid expenses and other current assets | ||||||||||
Prepaid expenses and other current assets include prepaid amounts for rent, maintenance, business licenses, advertising, and insurance, and amounts receivable for certain vendor rebates (primarily those expected to be collected in cash) and coupons. | ||||||||||
Property and equipment | ||||||||||
As the result of a merger transaction in 2007, the Company's property and equipment was recorded at estimated fair values. Property and equipment acquired subsequent to the merger has been recorded at cost. The Company records depreciation and amortization on a straight-line basis over the assets' estimated useful lives. The Company's property and equipment balances and depreciable lives are summarized as follows: | ||||||||||
(In thousands) | Depreciable | January 31, | February 1, | |||||||
Life | 2014 | 2013 | ||||||||
Land | Indefinite | $ | 163,448 | $ | 176,861 | |||||
Land improvements | 20 | 48,566 | 80,834 | |||||||
Buildings | 39 - 40 | 765,555 | 773,835 | |||||||
Leasehold improvements | (a) | 326,122 | 279,351 | |||||||
Furniture, fixtures and equipment | 10-Mar | 2,078,893 | 1,828,573 | |||||||
Construction in progress | 70,332 | 87,444 | ||||||||
| | | | | | | | | | |
3,452,916 | 3,226,898 | |||||||||
Less accumulated depreciation and amortization | 1,372,611 | 1,138,233 | ||||||||
| | | | | | | | | | |
Net property and equipment | $ | 2,080,305 | $ | 2,088,665 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
(a) | ||||||||||
amortized over the lesser of the life of the applicable lease term or the estimated useful life of the asset | ||||||||||
Depreciation expense related to property and equipment was approximately $315.3 million, $277.2 million and $243.7 million for 2013, 2012 and 2011. Amortization of capital lease assets is included in depreciation expense. Interest on borrowed funds during the construction of property and equipment is capitalized where applicable. Interest costs of $1.2 million, $0.6 million and $1.5 million were capitalized in 2013, 2012 and 2011. | ||||||||||
Impairment of long-lived assets | ||||||||||
When indicators of impairment are present, the Company evaluates the carrying value of long-lived assets, other than goodwill, in relation to the operating performance and future cash flows or the appraised values of the underlying assets. Generally, the Company's policy is to review for impairment stores open more than three years for which current cash flows from operations are negative. Impairment results when the carrying value of the assets exceeds the undiscounted future cash flows expected to be generated by the assets. The Company's estimate of undiscounted future cash flows is based upon historical operations of the stores and estimates of future store profitability which encompasses many factors that are subject to variability and difficult to predict. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value and the asset's estimated fair value. The fair value is estimated based primarily upon estimated future cash flows over the asset's remaining useful life (discounted at the Company's credit adjusted risk-free rate) or other reasonable estimates of fair market value. Assets to be disposed of are adjusted to the fair value less the cost to sell if less than the book value. | ||||||||||
The Company recorded impairment charges included in SG&A expense of approximately $0.5 million in 2013, $2.7 million in 2012 and $1.0 million in 2011, to reduce the carrying value of certain of its stores' assets. Such action was deemed necessary based on the Company's evaluation that such amounts would not be recoverable primarily due to insufficient sales or excessive costs resulting in negative current and projected future cash flows at these locations. | ||||||||||
Goodwill and other intangible assets | ||||||||||
The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Goodwill and intangible assets with indefinite lives are tested for impairment annually or more frequently if indicators of impairment are present. Other intangible assets are tested for impairment if indicators of impairment are present. Impaired assets are written down to fair value as required. No impairment of intangible assets has been identified during any of the periods presented. | ||||||||||
In accordance with accounting standards for goodwill and indefinite-lived intangible assets, an entity has the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill or an indefinite-lived intangible asset is impaired. If after such assessment an entity concludes that the asset is not impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the asset using a quantitative impairment test, and if impaired, the associated assets must be written down to fair value as described in further detail below. | ||||||||||
The quantitative goodwill impairment test is a two-step process that requires management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of the Company's reporting unit based on valuation techniques (including a discounted cash flow model using revenue and profit forecasts) and comparing that estimated fair value with the recorded carrying value, which includes goodwill. If the estimated fair value is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of the implied fair value of goodwill would require the Company to allocate the estimated fair value of its reporting unit to its assets and liabilities. Any unallocated fair value would represent the implied fair value of goodwill, which would be compared to its corresponding carrying value. | ||||||||||
The quantitative impairment test for intangible assets compares the fair value of the intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. | ||||||||||
Other assets | ||||||||||
Noncurrent Other assets consist primarily of qualifying prepaid expenses, debt issuance costs which are amortized over the life of the related obligations, and utility, security and other deposits. | ||||||||||
Accrued expenses and other liabilities | ||||||||||
Accrued expenses and other consist of the following: | ||||||||||
(In thousands) | January 31, | February 1, | ||||||||
2014 | 2013 | |||||||||
Compensation and benefits | $ | 47,909 | $ | 76,981 | ||||||
Insurance | 84,697 | 86,189 | ||||||||
Taxes (other than taxes on income) | 104,990 | 89,329 | ||||||||
Other | 130,982 | 104,939 | ||||||||
| | | | | | | | |||
$ | 368,578 | $ | 357,438 | |||||||
| | | | | | | | |||
| | | | | | | | |||
Other accrued expenses primarily include the current portion of liabilities for interest expense, legal settlements, freight expense, utilities, and common area and other maintenance charges. | ||||||||||
Insurance liabilities | ||||||||||
The Company retains a significant portion of risk for its workers' compensation, employee health, general liability, property and automobile claim exposures. Accordingly, provisions are made for the Company's estimates of such risks. The undiscounted future claim costs for the workers' compensation, general liability, and health claim risks are derived using actuarial methods and are recorded as self-insurance reserves pursuant to Company policy. To the extent that subsequent claim costs vary from those estimates, future results of operations will be affected as the reserves are adjusted. | ||||||||||
Ashley River Insurance Company ("ARIC"), a South Carolina-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiary companies premiums to insure the retained workers' compensation and non-property general liability exposures. Pursuant to South Carolina insurance regulations, ARIC is required to maintain certain levels of cash and cash equivalents related to its self-insured exposures. ARIC currently insures no unrelated third-party risk. | ||||||||||
Operating leases and related liabilities | ||||||||||
Rent expense is recognized over the term of the lease. The Company records minimum rental expense on a straight-line basis over the base, non-cancelable lease term commencing on the date that the Company takes physical possession of the property from the landlord, which normally includes a period prior to the store opening to make necessary leasehold improvements and install store fixtures. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. Tenant allowances, to the extent received, are recorded as deferred incentive rent and are amortized as a reduction to rent expense over the term of the lease. Any difference between the calculated expense and the amounts actually paid are reflected as a liability, with the current portion in Accrued expenses and other and the long-term portion in Other liabilities in the consolidated balance sheets, and totaled approximately $49.5 million and $43.6 million at January 31, 2014 and February 1, 2013, respectively. | ||||||||||
The Company recognizes contingent rental expense when the achievement of specified sales targets are considered probable. The amount expensed but not paid as of January 31, 2014 and February 1, 2013 was approximately $6.0 million and $7.7 million, respectively, and is included in Accrued expenses and other in the consolidated balance sheets. | ||||||||||
Other liabilities | ||||||||||
Noncurrent Other liabilities consist of the following: | ||||||||||
(In thousands) | January 31, | February 1, | ||||||||
2014 | 2013 | |||||||||
Compensation and benefits | $ | 17,604 | $ | 18,404 | ||||||
Insurance | 145,162 | 137,451 | ||||||||
Income tax related reserves | 18,802 | 23,383 | ||||||||
Deferred gain on sale leaseback | 62,693 | — | ||||||||
Other | 52,285 | 46,161 | ||||||||
| | | | | | | | |||
$ | 296,546 | $ | 225,399 | |||||||
| | | | | | | | |||
| | | | | | | | |||
Amounts categorized as "Other" in the table above consist primarily of deferred rent and derivative liabilities. | ||||||||||
Fair value accounting | ||||||||||
The Company utilizes accounting standards for fair value, which include the definition of fair value, the framework for measuring fair value, and disclosures about fair value measurements. Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | ||||||||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are based on an entity's own assumptions, as there is little, if any, observable market activity. In instances where the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||||||||||
The valuation of the Company's derivative financial instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. | ||||||||||
The Company incorporates credit valuation adjustments (CVAs) to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | ||||||||||
In connection with accounting standards for fair value measurement, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. However, the CVAs associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of January 31, 2014, the Company has assessed the significance of the impact of the CVAs on the overall valuation of its derivative positions and has determined that the CVAs are not significant to the overall valuation of its derivatives. Based on the Company's review of the CVAs by counterparty portfolio, the Company has determined that the CVAs are not significant to the overall portfolio valuations, as the CVAs are deemed to be immaterial in terms of basis points and are a very small percentage of the aggregate notional value of the derivative instruments. Although some of the CVAs as a percentage of termination value appear to be more significant, primary emphasis was placed on a review of the CVA in basis points and the percentage of the notional value. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | ||||||||||
Derivative financial instruments | ||||||||||
The Company accounts for derivative financial instruments in accordance with applicable accounting standards for such instruments and hedging activities, which require that all derivatives are recorded on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. | ||||||||||
Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge a certain portion of its risk, even though hedge accounting does not apply or the Company elects not to apply the hedge accounting standards. | ||||||||||
The Company's derivative financial instruments, in the form of interest rate swaps at January 31, 2014, are related to variable interest rate risk exposures associated with the Company's long-term debt and were entered into in an effort to manage that risk. The counterparties to the Company's derivative agreements are all major international financial institutions. The Company continually monitors its position and the credit ratings of its counterparties and does not anticipate nonperformance by the counterparties. | ||||||||||
Revenue and gain recognition | ||||||||||
The Company recognizes retail sales in its stores at the time the customer takes possession of merchandise. All sales are net of discounts and estimated returns and are presented net of taxes assessed by governmental authorities that are imposed concurrent with those sales. The liability for retail merchandise returns is based on the Company's prior experience. The Company records gain contingencies when realized. | ||||||||||
The Company recognizes gift card sales revenue at the time of redemption. The liability for the gift cards is established for the cash value at the time of purchase. The liability for outstanding gift cards was approximately $4.3 million and $3.6 million at January 31, 2014 and February 1, 2013, respectively, and is recorded in Accrued expenses and other liabilities. Through January 31, 2014, the Company has not recorded any breakage income related to its gift card program. | ||||||||||
Advertising costs | ||||||||||
Advertising costs are expensed upon performance, "first showing" or distribution, and are reflected in SG&A expenses net of earned cooperative advertising amounts provided by vendors which are specific, incremental and otherwise qualifying expenses related to the promotion or sale of vendor products for dollar amounts up to but not exceeding actual incremental costs. Advertising costs were $70.5 million, $61.7 million and $50.4 million in 2013, 2012 and 2011, respectively. These costs primarily include promotional circulars, targeted circulars supporting new stores, television and radio advertising, in-store signage, and costs associated with the sponsorships of certain automobile racing activities. Vendor funding for cooperative advertising offset reported expenses by $31.9 million, $23.6 million and $20.8 million in 2013, 2012 and 2011, respectively. | ||||||||||
Share-based payments | ||||||||||
The Company recognizes compensation expense for share-based compensation based on the fair value of the awards on the grant date. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate may be adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the prior estimate. The forfeiture rate is the estimated percentage of options granted that are expected to be forfeited or canceled before becoming fully vested. The Company bases this estimate on historical experience or estimates of future trends, as applicable. An increase in the forfeiture rate will decrease compensation expense. | ||||||||||
The fair value of each option grant is separately estimated and amortized into compensation expense on a straight-line basis between the applicable grant date and each vesting date. The Company has estimated the fair value of all stock option awards as of the grant date by applying the Black-Scholes-Merton option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. | ||||||||||
The Company calculates compensation expense for restricted stock, share units and similar awards as the difference between the market price of the underlying stock on the grant date and the purchase price, if any. Such expense is recognized on a straight-line basis for graded awards or an accelerated basis for performance awards over the period in which the recipient earns the awards. | ||||||||||
Store pre-opening costs | ||||||||||
Pre-opening costs related to new store openings and the related construction periods are expensed as incurred. | ||||||||||
Income taxes | ||||||||||
Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company's consolidated financial statements or income tax returns. Deferred income tax expense or benefit is the net change during the year in the Company's deferred income tax assets and liabilities. | ||||||||||
The Company includes income tax related interest and penalties as a component of the provision for income tax expense. | ||||||||||
Income tax reserves are determined using a methodology which requires companies to assess each income tax position taken using a two-step process. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law which may be subject to change or varying interpretation. If the Company's determinations and estimates prove to be inaccurate, the resulting adjustments could be material to the Company's future financial results. | ||||||||||
Management estimates | ||||||||||
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | ||||||||||
Accounting standards | ||||||||||
In February 2013, the Financial Accounting Standards Board issued an accounting standards update which requires additional disclosures with regard to an entity's balances of and amounts reclassified out of accumulated other comprehensive income in its financial statements. The Company adopted this guidance in the first quarter of 2013. All of the Company's related balances are cash flow hedges, and the required disclosures are reflected in Note 7 below. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. | ||||||||||
Reclassifications | ||||||||||
Certain reclassifications of the 2012 and 2011 amounts have been made to conform to the 2013 presentation. | ||||||||||
Goodwill_and_other_intangible_
Goodwill and other intangible assets | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Goodwill and other intangible assets | ' | ||||||||||||
Goodwill and other intangible assets | ' | ||||||||||||
2. Goodwill and other intangible assets | |||||||||||||
As of January 31, 2014 and February 1, 2013, the balances of the Company's intangible assets were as follows: | |||||||||||||
As of January 31, 2014 | |||||||||||||
(In thousands) | Remaining | Amount | Accumulated | Net | |||||||||
Life | Amortization | ||||||||||||
Goodwill | Indefinite | $ | 4,338,589 | $ | — | $ | 4,338,589 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other intangible assets: | |||||||||||||
Leasehold interests | 1 to 9 years | $ | 64,644 | $ | 56,699 | $ | 7,945 | ||||||
Trade names and trademarks | Indefinite | 1,199,700 | — | 1,199,700 | |||||||||
| | | | | | | | | | | | | |
$ | 1,264,344 | $ | 56,699 | $ | 1,207,645 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
As of February 1, 2013 | |||||||||||||
(In thousands) | Remaining | Amount | Accumulated | Net | |||||||||
Life | Amortization | ||||||||||||
Goodwill | Indefinite | $ | 4,338,589 | $ | — | $ | 4,338,589 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other intangible assets: | |||||||||||||
Leasehold interests | 1 to 10 years | $ | 106,917 | $ | 87,074 | $ | 19,843 | ||||||
Trade names and trademarks | Indefinite | 1,199,700 | — | 1,199,700 | |||||||||
| | | | | | | | | | | | | |
$ | 1,306,617 | $ | 87,074 | $ | 1,219,543 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The Company recorded amortization expense related to amortizable intangible assets for 2013, 2012 and 2011 of $11.9 million, $16.9 million and $21.0 million, respectively, all of which is included in rent expense. Expected future cash flows associated with the Company's intangible assets are not expected to be materially affected by the Company's intent or ability to renew or extend the arrangements. The Company's goodwill balance is not expected to be deductible for tax purposes. | |||||||||||||
For intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: 2014—$5.8 million, 2015—$0.9 million, 2016—$0.3 million, 2017—$0.2 million and 2018—$0.2 million. | |||||||||||||
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Earnings per share | ' | ||||||||||
Earnings per share | ' | ||||||||||
3. Earnings per share | |||||||||||
Earnings per share is computed as follows (in thousands except per share data): | |||||||||||
2013 | |||||||||||
Net Income | Weighted | Per Share | |||||||||
Average | Amount | ||||||||||
Shares | |||||||||||
Basic earnings per share | $ | 1,025,116 | 322,886 | $ | 3.17 | ||||||
Effect of dilutive share-based awards | 968 | ||||||||||
| | | | | | | | | | | |
Diluted earnings per share | $ | 1,025,116 | 323,854 | $ | 3.17 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2012 | |||||||||||
Net Income | Weighted | Per Share | |||||||||
Average | Amount | ||||||||||
Shares | |||||||||||
Basic earnings per share | $ | 952,662 | 332,254 | $ | 2.87 | ||||||
Effect of dilutive share-based awards | 2,215 | ||||||||||
| | | | | | | | | | | |
Diluted earnings per share | $ | 952,662 | 334,469 | $ | 2.85 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2011 | |||||||||||
Net Income | Weighted | Per Share | |||||||||
Average | Amount | ||||||||||
Shares | |||||||||||
Basic earnings per share | $ | 766,685 | 341,234 | $ | 2.25 | ||||||
Effect of dilutive share-based awards | 3,883 | ||||||||||
| | | | | | | | | | | |
Diluted earnings per share | $ | 766,685 | 345,117 | $ | 2.22 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share was computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share was determined based on the dilutive effect of share-based awards using the treasury stock method. | |||||||||||
Options to purchase shares of common stock that were outstanding at the end of the respective periods, but were not included in the computation of diluted earnings per share because the effect of exercising such options would be antidilutive, were 1.1 million, 0.8 million, and zero in 2013, 2012 and 2011, respectively. | |||||||||||
Income_taxes
Income taxes | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||
Income taxes | ' | |||||||||||||||||||
Income taxes | ' | |||||||||||||||||||
4. Income taxes | ||||||||||||||||||||
The provision (benefit) for income taxes consists of the following: | ||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 530,728 | $ | 457,370 | $ | 385,277 | ||||||||||||||
Foreign | 1,324 | 1,209 | 1,449 | |||||||||||||||||
State | 101,174 | 78,025 | 56,272 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
633,226 | 536,604 | 442,998 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
Deferred: | ||||||||||||||||||||
Federal | (16,132 | ) | 9,734 | 8,313 | ||||||||||||||||
State | (13,880 | ) | (1,606 | ) | 7,293 | |||||||||||||||
| | | | | | | | | | | ||||||||||
(30,012 | ) | 8,128 | 15,606 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
$ | 603,214 | $ | 544,732 | $ | 458,604 | |||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to income before income taxes is summarized as follows: | ||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. federal statutory rate on earnings before income taxes | $ | 569,916 | 35 | % | $ | 524,088 | 35 | % | $ | 428,851 | 35 | % | ||||||||
State income taxes, net of federal income tax benefit | 56,822 | 3.5 | 52,713 | 3.5 | 42,774 | 3.5 | ||||||||||||||
Jobs credits, net of federal income taxes | (19,348 | ) | (1.2 | ) | (16,062 | ) | (1.1 | ) | (15,153 | ) | (1.2 | ) | ||||||||
Reduction in valuation allowances | (437 | ) | — | (3,050 | ) | (0.2 | ) | (2,202 | ) | (0.2 | ) | |||||||||
Reduction in income tax reserves | (6,391 | ) | (0.4 | ) | (13,676 | ) | (0.9 | ) | — | — | ||||||||||
Other, net | 2,652 | 0.1 | 719 | 0.1 | 4,334 | 0.3 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 603,214 | 37 | % | $ | 544,732 | 36.4 | % | $ | 458,604 | 37.4 | % | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The 2013 effective tax rate was an expense of 37.0%. The 2013 effective income tax rate increased from 2012 due to the favorable resolution of income tax examinations during 2012 that did not reoccur, to the same extent, in 2013. This rate increase was partially offset by the recording of an income tax benefit in 2013 associated with the expiration of the assessment period during which the taxing authorities could have assessed additional income tax associated with the Company's 2009 tax year. In addition, the 2013 amounts reflect larger income tax benefits associated with federal jobs credits. The Company receives a significant income tax benefit related to salaries paid to certain newly hired employees that qualify for federal jobs credits (principally the Work Opportunity Tax Credit or "WOTC"). The federal law authorizing the WOTC credit expired for employees hired after December 31, 2013. Whether these credits will be available for employees hired after December 31, 2013 depends upon a change in the tax law that extends the expiration date of these credit provisions, the certainty and timing of which are currently unclear. | ||||||||||||||||||||
The 2012 effective tax rate was an expense of 36.4%. This expense was greater than the federal statutory tax rate of 35% due primarily to the inclusion of state income taxes in the total effective tax rate. The 2012 effective tax rate of 36.4% was lower than the 2011 rate of 37.4% due to the favorable resolution of a federal income tax examination during 2012. | ||||||||||||||||||||
The 2011 effective tax rate was an expense of 37.4%. This expense was greater than the federal statutory tax rate of 35% due primarily to the inclusion of state income taxes in the total effective tax rate. | ||||||||||||||||||||
Deferred taxes reflect the effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: | ||||||||||||||||||||
(In thousands) | January 31, | February 1, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||
Deferred compensation expense | $ | 8,666 | $ | 9,276 | ||||||||||||||||
Accrued expenses and other | 9,067 | 5,727 | ||||||||||||||||||
Accrued rent | 17,375 | 15,450 | ||||||||||||||||||
Accrued insurance | 78,557 | 72,442 | ||||||||||||||||||
Accrued incentive compensation | 3,385 | 15,399 | ||||||||||||||||||
Interest rate hedges | 4,921 | 1,883 | ||||||||||||||||||
Tax benefit of income tax and interest reserves related to uncertain tax positions | 3,439 | 2,696 | ||||||||||||||||||
Deferred gain on sale-leaseback | 26,186 | — | ||||||||||||||||||
Other | 15,094 | 13,914 | ||||||||||||||||||
State tax net operating loss carry forwards, net of federal tax | 282 | 645 | ||||||||||||||||||
State tax credit carry forwards, net of federal tax | 8,282 | 8,925 | ||||||||||||||||||
| | | | | | | | |||||||||||||
175,254 | 146,357 | |||||||||||||||||||
Less valuation allowances | (1,393 | ) | (1,830 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total deferred tax assets | 173,861 | 144,527 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||
Property and equipment | (307,644 | ) | (294,204 | ) | ||||||||||||||||
Inventories | (64,481 | ) | (67,246 | ) | ||||||||||||||||
Trademarks | (433,130 | ) | (435,529 | ) | ||||||||||||||||
Amortizable assets | (2,343 | ) | (6,809 | ) | ||||||||||||||||
Bonus related tax method change | — | (6,534 | ) | |||||||||||||||||
Other | (2,084 | ) | (4,498 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total deferred tax liabilities | (809,682 | ) | (814,820 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net deferred tax liabilities | $ | (635,821 | ) | $ | (670,293 | ) | ||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Net deferred tax liabilities are reflected separately on the consolidated balance sheets as current and noncurrent deferred income taxes. The following table summarizes net deferred tax liabilities as recorded in the consolidated balance sheets: | ||||||||||||||||||||
(In thousands) | January 31, | February 1, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Current deferred income tax liabilities, net | $ | (21,795 | ) | $ | (23,223 | ) | ||||||||||||||
Noncurrent deferred income tax liabilities, net | (614,026 | ) | (647,070 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net deferred tax liabilities | $ | (635,821 | ) | $ | (670,293 | ) | ||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
The Company has state net operating loss carry forwards as of January 31, 2014 that total approximately $4.3 million which will expire in 2028. The Company also has state tax credit carry forwards of approximately $12.7 million that will expire beginning in 2021 through 2024. | ||||||||||||||||||||
A valuation allowance has been provided for state tax credit carry forwards and federal capital losses. The 2013, 2012, and 2011 decreases of $0.4 million, $3.1 million and $2.2 million, respectively, were recorded as a reduction in income tax expense. Based upon expected future income, management believes that it is more likely than not that the results of operations will generate sufficient taxable income to realize the deferred tax assets after giving consideration to the valuation allowance. | ||||||||||||||||||||
The Internal Revenue Service ("IRS") has previously examined the Company's 2008 and earlier federal income tax returns. As a result, the 2008 and earlier tax years are not open for further examination by the IRS. The Company has filed an amended federal income tax return requesting a refund of approximately $5.1 million for its 2009 tax year. This amended return is expected to be examined by the IRS. As the statute of limitations has otherwise closed for the 2009 tax year, the IRS' ability to assess additional income tax for 2009 is limited to the refund requested on the amended income tax return. The IRS, at its discretion, may also choose to examine the Company's 2010 through 2013 fiscal year income tax filings. The Company has various state income tax examinations that are currently in progress. Generally, the Company's 2010 and later tax years remain open for examination by the various state taxing authorities. | ||||||||||||||||||||
As of January 31, 2014, accruals for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $19.6 million, $2.4 million and $0.4 million, respectively, for a total of $22.4 million. Of this total amount, $3.6 million and $18.8 million are reflected in current liabilities as Accrued expenses and other and in noncurrent Other liabilities, respectively, in the consolidated balance sheet. | ||||||||||||||||||||
As of February 1, 2013, accruals for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $22.2 million, $2.3 million and $0.4 million, respectively, for a total of $24.9 million. Of this total amount, $1.5 million and $23.4 million are reflected in current liabilities as Accrued expenses and other and in noncurrent Other liabilities, respectively, in the consolidated balance sheet. | ||||||||||||||||||||
The Company believes that it is reasonably possible that the reserve for uncertain tax positions may be reduced by approximately $11.2 million in the coming twelve months principally as a result of the effective settlement of several outstanding issues. Also, as of January 31, 2014, approximately $19.6 million of the uncertain tax positions would impact the Company's effective income tax rate if the Company were to recognize the tax benefit for these positions. | ||||||||||||||||||||
The amounts associated with uncertain tax positions included in income tax expense consists of the following: | ||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Income tax expense (benefit) | $ | (3,915 | ) | $ | (16,119 | ) | $ | 97 | ||||||||||||
Income tax related interest expense (benefit) | 590 | 344 | 968 | |||||||||||||||||
Income tax related penalty expense (benefit) | 30 | (200 | ) | 63 | ||||||||||||||||
A reconciliation of the uncertain income tax positions from January 28, 2011 through January 31, 2014 is as follows: | ||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Beginning balance | $ | 22,237 | $ | 42,018 | $ | 26,429 | ||||||||||||||
Increases—tax positions taken in the current year | 3,484 | 2,114 | 125 | |||||||||||||||||
Increases—tax positions taken in prior years | 3,000 | 1,144 | 15,840 | |||||||||||||||||
Decreases—tax positions taken in prior years | (608 | ) | (22,669 | ) | — | |||||||||||||||
Statute expirations | (7,622 | ) | (166 | ) | (376 | ) | ||||||||||||||
Settlements | (908 | ) | (204 | ) | — | |||||||||||||||
| | | | | | | | | | | ||||||||||
Ending balance | $ | 19,583 | $ | 22,237 | $ | 42,018 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Current_and_longterm_obligatio
Current and long-term obligations | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Current and long-term obligations | ' | |||||||
Current and long-term obligations | ' | |||||||
5. Current and long-term obligations | ||||||||
Current and long-term obligations consist of the following: | ||||||||
(In thousands) | January 31, | February 1, | ||||||
2014 | 2013 | |||||||
Senior unsecured credit facilities, maturity April 11, 2018: | ||||||||
Term Facility | $ | 1,000,000 | $ | — | ||||
Revolving Facility | — | — | ||||||
Senior secured term loan facility: | ||||||||
Maturity July 6, 2014 | — | 1,083,800 | ||||||
Maturity July 6, 2017 | — | 879,700 | ||||||
ABL Facility, maturity July 6, 2014 | — | 286,500 | ||||||
41/8% Senior Notes due July 15, 2017 | 500,000 | 500,000 | ||||||
17/8% Senior Notes due April 15, 2018 (net of discount of $383) | 399,617 | — | ||||||
31/4% Senior Notes due April 15, 2023 (net of discount of $2,199) | 897,801 | — | ||||||
Capital lease obligations | 6,841 | 7,733 | ||||||
Tax increment financing due February 1, 2035 | 14,495 | 14,495 | ||||||
| | | | | | | | |
2,818,754 | 2,772,228 | |||||||
Less: current portion | (75,966 | ) | (892 | ) | ||||
| | | | | | | | |
Long-term portion | $ | 2,742,788 | $ | 2,771,336 | ||||
| | | | | | | | |
| | | | | | | | |
On April 11, 2013, the Company consummated a refinancing pursuant to which it terminated its existing senior secured credit agreements, entered into a new five-year unsecured credit agreement, and issued senior notes due in 2018 and 2023 as described in more detail below. The Company's new senior unsecured credit facilities (the "Facilities") consist of a $1.0 billion senior unsecured term loan facility (the "Term Facility") and an $850.0 million senior unsecured revolving credit facility (the "Revolving Facility"), which provides for the issuance of letters of credit up to $250.0 million. The Company may request, subject to agreement by one or more lenders, increased revolving commitments and/or incremental term loan facilities in an aggregate amount of up to $150.0 million. The Term Facility will amortize in quarterly installments of $25.0 million, with the first such payment due on August 1, 2014, and final payment at maturity on April 11, 2018. The Company capitalized $5.9 million of debt issuance costs associated with the Facilities which is included in long-term Other assets, net in the consolidated balance sheet. | ||||||||
Borrowings under the Facilities bear interest at a rate equal to an applicable margin plus, at the Company's option, either (a) LIBOR or (b) a base rate (which is usually equal to the prime rate). The applicable margin for borrowings as of January 31, 2014 was 1.275% for LIBOR borrowings and 0.275% for base-rate borrowings. The Company must also pay a facility fee on any used and unused amounts of the Facilities, as well as letter of credit fees. The applicable margins for borrowings, the facility fees and the letter of credit fees under the Facilities are subject to adjustment each quarter based on the Company's long-term senior unsecured debt ratings. The weighted average interest rate for borrowings under the Facilities was 1.46% (without giving effect to the interest rate swaps discussed in Note 7) as of January 31, 2014. | ||||||||
The Facilities can be prepaid in whole or in part at any time. The Facilities contain certain covenants which place limitations on the incurrence of liens; change of business; mergers or sales of all or substantially all assets; and subsidiary indebtedness, among other limitations. The Facilities also contain financial covenants which require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. As of January 31, 2014, the Company was in compliance with all such covenants. The Facilities also contain customary affirmative covenants and events of default. | ||||||||
As of January 31, 2014, the Company had total outstanding letters of credit of $49.9 million, $27.2 million of which were under the Revolving Facility, and borrowing availability under the Revolving Facility was $822.8 million. | ||||||||
In connection with the refinancing discussed above, the Company terminated its senior secured term loan facility and senior secured revolving credit facility ("ABL Facility"). The Company recorded a pretax loss of $18.9 million for the write off of debt issuance costs associated with those facilities, which is reflected in Other (income) expense in the consolidated statement of income for the year ended January 31, 2014. | ||||||||
On July 12, 2012, the Company issued $500.0 million aggregate principal amount of 4.125% senior notes due 2017 (the "2017 Senior Notes") which mature on July 15, 2017. Interest on the 2017 Senior Notes is payable in cash on January 15 and July 15 of each year, and commenced on January 15, 2013. | ||||||||
On April 11, 2013, the Company issued $400.0 million aggregate principal amount of 1.875% senior notes due 2018 (the "2018 Senior Notes"), net of discount of $0.5 million, which mature on April 15, 2018; and issued $900.0 million aggregate principal amount of 3.25% senior notes due 2023 (the "2023 Senior Notes"), net of discount of $2.4 million, which mature on April 15, 2023. Collectively, the 2017 Senior Notes, the 2018 Senior Notes and the 2023 Senior Notes comprise the "Senior Notes", each of which were issued pursuant to an indenture as modified by supplemental indentures relating to each series of Senior Notes (as so supplemented, the "Senior Indenture"). The Company capitalized $10.1 million of debt issuance costs associated with the 2018 Senior Notes and the 2023 Senior Notes. Interest on the 2018 Senior Notes and 2023 Senior Notes is payable in cash on April 15 and October 15 of each year and commenced on October 15, 2013. | ||||||||
The Company may redeem some or all of its Senior Notes at any time at redemption prices set forth in the Senior Indenture. Upon the occurrence of a change of control triggering event, which is defined in the Senior Indenture, each holder of the Senior Notes has the right to require the Company to repurchase some or all of such holder's Senior Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the repurchase date. | ||||||||
The Senior Indenture contains covenants limiting, among other things, the ability of the Company (subject to certain exceptions) to consolidate, merge, sell or otherwise dispose of all or substantially all of the Company's assets; and the ability of the Company and its subsidiaries to incur or guarantee indebtedness secured by liens on any shares of voting stock of significant subsidiaries. | ||||||||
The Senior 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 Senior Notes to become or to be declared due and payable. | ||||||||
On July 15, 2012, the Company redeemed $450.7 million aggregate principal amount of outstanding senior subordinated notes due 2017 at a premium, resulting in a pretax loss of $29.0 million which is reflected in Other (income) expense in the consolidated statement of income for the year ended February 1, 2013. The Company funded the redemption price for the senior subordinated notes due 2017 with proceeds from the issuance of the 2017 Senior Notes. | ||||||||
In 2011, the Company repurchased or redeemed $864.3 million aggregate principal amount of outstanding senior notes due 2015 at a premium, resulting in pretax losses totaling $60.3 million which are reflected in Other (income) expense in the consolidated statement of income for the year ended February 3, 2012. The Company funded the redemption price for the senior notes due 2015 with cash on hand and borrowings under the ABL Facility. | ||||||||
Scheduled debt maturities, including capital lease obligations, for the Company's fiscal years listed below are as follows (in thousands): 2014—$75,966; 2015—$101,158; 2016—$101,379; 2017—$601,290; 2018—$1,025,892; thereafter—$915,651. | ||||||||
Assets_and_liabilities_measure
Assets and liabilities measured at fair value | 12 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Assets and liabilities measured at fair value | ' | |||||||||||||
Assets and liabilities measured at fair value | ' | |||||||||||||
6. Assets and liabilities measured at fair value | ||||||||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of January 31, 2014, aggregated by the level in the fair value hierarchy within which those measurements are classified. | ||||||||||||||
(In thousands) | Quoted Prices | Significant | Significant | Balance at | ||||||||||
in Active | Other | Unobservable | January 31, | |||||||||||
Markets | Observable | Inputs | 2014 | |||||||||||
for Identical | Inputs | (Level 3) | ||||||||||||
Assets and | (Level 2) | |||||||||||||
Liabilities | ||||||||||||||
(Level 1) | ||||||||||||||
Assets: | ||||||||||||||
Trading securities(a) | $ | 621 | $ | — | $ | — | $ | 621 | ||||||
Liabilities: | ||||||||||||||
Long-term obligations(b) | 2,772,739 | 21,336 | — | 2,794,075 | ||||||||||
Derivative financial instruments(c) | — | 4,109 | — | 4,109 | ||||||||||
Deferred compensation(d) | 21,696 | — | — | 21,696 | ||||||||||
(a) | ||||||||||||||
Reflected at fair value in the consolidated balance sheet as Prepaid expenses and other current assets. | ||||||||||||||
(b) | ||||||||||||||
Reflected at book value in the consolidated balance sheet as Current portion of long-term obligations of $75,966 and Long-term obligations of $2,742,788. | ||||||||||||||
(c) | ||||||||||||||
Reflected at fair value in the consolidated balance sheet as noncurrent Other liabilities. | ||||||||||||||
(d) | ||||||||||||||
Reflected at fair value in the consolidated balance sheet as Accrued expenses and other current liabilities of $4,092 and noncurrent Other liabilities of $17,604. | ||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for cash, cash equivalents, short-term investments, receivables and payables approximate their respective fair values. The Company does not have any recurring fair value measurements using significant unobservable inputs (Level 3) as of January 31, 2014. | ||||||||||||||
Derivative_financial_instrumen
Derivative financial instruments | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Derivative financial instruments | ' | ||||||||||
Derivative financial instruments | ' | ||||||||||
7. Derivative financial instruments | |||||||||||
The Company enters into certain financial instrument positions, all of which are intended to be used to reduce risk by hedging an underlying economic exposure. | |||||||||||
Risk management objective of using derivatives | |||||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined primarily by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's borrowings. | |||||||||||
In addition, the Company is exposed to certain risks arising from uncertainties of future market values caused by the fluctuation in the prices of commodities. From time to time the Company may enter into derivative financial instruments to protect against future price changes related to these commodity prices. | |||||||||||
Cash flow hedges of interest rate risk | |||||||||||
The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate changes. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | |||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income (loss) (also referred to as "OCI") and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These transactions represent the only amounts reflected in Accumulated other comprehensive income (loss) in the consolidated statements of shareholders' equity. During the years ended January 31, 2014, February 1, 2013, and February 3, 2012, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. | |||||||||||
As of January 31, 2014, the Company had interest rate swaps with a combined notional value of $875 million that were designated as cash flow hedges of interest rate risk. Amounts reported in Accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. | |||||||||||
During the year ended January 31, 2014, the Company entered into treasury locks with a combined notional amount of $700 million that were designated as cash flow hedges of interest rate risk on the Company's forecasted issuance of long-term debt. The issuance of the hedged long-term debt occurred on April 11, 2013 in the form of senior notes due April 15, 2023, as further discussed in Note 5, and the related settlement of the treasury locks on that date resulted in a loss of $13.2 million which was deferred to OCI. The loss is being amortized as an increase to interest expense over the period corresponding to the debt's maturity as the Company accrues or pays interest on the hedged long-term debt. There was no ineffectiveness recognized on these designated treasury locks. | |||||||||||
During the next 52-week period, the Company estimates that approximately $4.7 million will be reclassified as an increase to interest expense for its interest rate swaps and treasury locks. | |||||||||||
Non-designated hedges of commodity risk | |||||||||||
Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to commodity price risk but do not meet strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of January 31, 2014, the Company had no such non-designated hedges. | |||||||||||
The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of January 31, 2014 and February 1, 2013: | |||||||||||
(in thousands) | January 31, | February 1, | |||||||||
2014 | 2013 | ||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||
Interest rate swaps classified as noncurrent Other liabilities | $ | 4,109 | $ | 4,822 | |||||||
The tables below present the pre-tax effect of the Company's derivative financial instruments as reflected in the consolidated statements of comprehensive income and shareholders' equity, as applicable: | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Derivatives in Cash Flow Hedging Relationships | |||||||||||
Loss related to effective portion of derivative recognized in OCI | $ | 16,036 | $ | 9,626 | $ | 3,836 | |||||
Loss related to effective portion of derivative reclassified from Accumulated OCI to Interest expense | $ | 4,604 | $ | 13,327 | $ | 28,633 | |||||
(Gain) loss related to ineffective portion of derivative recognized in Other (income) expense | $ | — | $ | (2,392 | ) | $ | 312 | ||||
Credit-risk-related contingent features | |||||||||||
The Company has agreements with all of its interest rate swap counterparties that contain a provision providing that the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on such indebtedness. | |||||||||||
As of January 31, 2014, the fair value of interest rate swaps in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $4.2 million. If the Company had breached any of these provisions at January 31, 2014, it could have been required to post full collateral or settle its obligations under the agreements at an estimated termination value of $4.2 million. As of January 31, 2014, the Company had not breached any of these provisions or posted any collateral related to these agreements. | |||||||||||
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Commitments and contingencies | ' | ||||||||||
Commitments and contingencies | ' | ||||||||||
8. Commitments and contingencies | |||||||||||
Leases | |||||||||||
As of January 31, 2014, the Company was committed under operating lease agreements for most of its retail stores. Many of the Company's stores are subject to build-to-suit arrangements with landlords which typically carry a primary lease term of up to 15 years with multiple renewal options. The Company also has stores subject to shorter-term leases and many of these leases have renewal options. Certain of the Company's leased stores have provisions for contingent rentals based upon a specified percentage of defined sales volume. | |||||||||||
The land and buildings of the Company's DCs in Fulton, Missouri and Indianola, Mississippi are subject to operating lease agreements and the leased Ardmore, Oklahoma DC is subject to a financing arrangement. The entities involved in the ownership structure underlying these leases meet the accounting definition of a Variable Interest Entity ("VIE"). The Company is not the primary beneficiary of these VIEs and, accordingly, has not included these entities in its consolidated financial statements. Certain leases contain restrictive covenants that, individually, are not material to the Company. As of January 31, 2014, the Company is not aware of any material violations of such covenants. | |||||||||||
In January 2014, the Company sold 233 store locations for cash and concurrent with the sale transaction, the Company leased the properties back for a period of 15 years. The transaction resulted in cash proceeds of approximately $281.6 million and a deferred gain of $67.2 million which will be recognized as a reduction of rent expense over the 15-year initial lease term of the properties. | |||||||||||
In January 1999, the Company sold its DC located in Ardmore, Oklahoma for cash and concurrent with the sale transaction, the Company leased the property back for a period of 23 years. The transaction is accounted for as a financing obligation rather than a sale as a result of, among other things, the lessor's ability to put the property back to the Company under certain circumstances. The property and equipment, along with the related lease obligation associated with this transaction are recorded in the consolidated balance sheets. In August 2007, the Company purchased a secured promissory note (the "Ardmore Note") from an unrelated third party with a face value of $34.3 million at the date of purchase which approximated the remaining financing obligation. The Ardmore Note represents debt issued by the third party entity from which the Company leases the Ardmore DC and therefore the Company holds the debt instrument pertaining to its lease financing obligation. Because a legal right of offset exists, the Company is accounting for the Ardmore Note as a reduction of its outstanding financing obligation in its consolidated balance sheets. | |||||||||||
Future minimum payments as of January 31, 2014 for operating leases are as follows: | |||||||||||
(In thousands) | |||||||||||
2014 | $ | 712,563 | |||||||||
2015 | 665,193 | ||||||||||
2016 | 610,643 | ||||||||||
2017 | 554,413 | ||||||||||
2018 | 496,265 | ||||||||||
Thereafter | 2,699,755 | ||||||||||
| | | | | |||||||
Total minimum payments | $ | 5,738,832 | |||||||||
| | | | | |||||||
| | | | | |||||||
Total minimum payments for capital leases as of January 31, 2014 were $8.7 million, with a present value of $6.8 million at January 31, 2014. The gross amount of property and equipment recorded under capital leases and financing obligations at both January 31, 2014 and February 1, 2013, was $29.8 million. Accumulated depreciation on property and equipment under capital leases and financing obligations at January 31, 2014 and February 1, 2013, was $8.7 million and $6.9 million, respectively. | |||||||||||
Rent expense under all operating leases is as follows: | |||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Minimum rentals(a) | $ | 674,849 | $ | 599,138 | $ | 525,486 | |||||
Contingent rentals | 12,058 | 15,150 | 16,856 | ||||||||
| | | | | | | | | | | |
$ | 686,907 | $ | 614,288 | $ | 542,342 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
Excludes amortization of leasehold interests of $11.9 million, $16.9 million and $21.0 million included in rent expense for the years ended January 31, 2014, February 1, 2013, and February 3, 2012, respectively. | |||||||||||
Legal proceedings | |||||||||||
On August 7, 2006, a lawsuit entitled Cynthia Richter, et al. v. Dolgencorp, Inc., et al. was filed in the United States District Court for the Northern District of Alabama (Case No. 7:06-cv-01537-LSC) ("Richter") in which the plaintiff alleges that she and other current and former Dollar General store managers were improperly classified as exempt executive employees under the Fair Labor Standards Act ("FLSA") and seeks to recover overtime pay, liquidated damages, and attorneys' fees and costs. On August 15, 2006, the Richter plaintiff filed a motion in which she asked the court to certify a nationwide class of current and former store managers. The Company opposed the plaintiff's motion. On March 23, 2007, the court conditionally certified a nationwide class. On December 2, 2009, notice was mailed to over 28,000 current or former Dollar General store managers. Approximately 3,950 individuals opted into the lawsuit, approximately 1,000 of whom have been dismissed for various reasons, including failure to cooperate in discovery. | |||||||||||
On April 2, 2012, the Company moved to decertify the class. The plaintiff's response to that motion was filed on May 9, 2012. | |||||||||||
On October 22, 2012, the court entered a Memorandum Opinion granting the Company's decertification motion. On December 19, 2012, the court entered an Order decertifying the matter and stating that a separate Order would be entered regarding the opt-in plaintiffs' rights and Cynthia Richter's individual claims. To date, the court has not entered such an Order. | |||||||||||
The parties agreed to mediate the matter, and the court informally stayed the action pending the results of the mediation. Mediations were conducted in January, April and August 2013. On August 10, 2013, the parties reached a preliminary agreement, which has been formalized and submitted to the court for approval, to resolve the matter for up to $8.5 million. The Company has deemed the settlement probable and recorded such amount as the estimated expense in the second quarter of 2013. | |||||||||||
The Company believes that its store managers are and have been properly classified as exempt employees under the FLSA and that the Richter action is not appropriate for collective action treatment. The Company has obtained summary judgment in some, although not all, of its pending individual or single-plaintiff store manager exemption cases in which it has filed such a motion. | |||||||||||
At this time, although probable, it is not certain that the court will approve the settlement. If it does not, and the case proceeds, it is not possible to predict whether Richter ultimately will be permitted to proceed collectively, and no assurances can be given that the Company will be successful in its defense of the action on the merits or otherwise. Similarly, at this time the Company cannot estimate either the size of any potential class or the value of the claims asserted if this action were to proceed. For these reasons, the Company is unable to estimate any potential loss or range of loss in such a scenario; however, if the Company is not successful in its defense efforts, the resolution of Richter could have a material adverse effect on the Company's consolidated financial statements as a whole. | |||||||||||
On April 9, 2012, the Company was served with a lawsuit filed in the United States District Court for the Eastern District of Virginia entitled Jonathan Marcum v. Dolgencorp. Inc. (Civil Action No. 3:12-cv-00108-JRS) in which the plaintiffs, one of whose conditional offer of employment was rescinded, allege that certain of the Company's background check procedures violate the Fair Credit Reporting Act ("FCRA"). Plaintiff Marcum also alleges defamation. According to the complaint and subsequently filed first and second amended complaints, the plaintiffs seek to represent a putative class of applicants in connection with their FCRA claims. The Company responded to the complaint and each of the amended complaints. The plaintiffs' certification motion was due to be filed on or before April 5, 2013; however, plaintiffs asked the court to stay all deadlines in light of the parties' ongoing settlement discussions (as more fully described below). On November 12, 2013, the court entered an order lifting the stay. The court has not issued a new scheduling order but has set a pre-trial conference for March 27, 2014. | |||||||||||
The parties have engaged in formal settlement discussions on three occasions, once in January 2013 with a private mediator, and again in March 2013 and July 2013 with a federal magistrate. On February 18, 2014, the parties reached a preliminary agreement to resolve the matter for up to $4.08 million, which must be submitted to and approved by the court. Based on this preliminary settlement agreement, the Company believes, but cannot guarantee, that the court will not proceed with the March 27, 2014, pre-trial conference. | |||||||||||
The Company's Employment Practices Liability Insurance ("EPLI") carrier has been placed on notice of this matter and participated in both the formal and informal settlement discussions. The EPLI Policy covering this matter has a $2 million self-insured retention. Because the Company believes that it was likely to expend the balance of its self-insured retention in settlement of this litigation or otherwise, it accrued $1.8 million in the fourth quarter of 2012, an amount that is immaterial to the Company's consolidated financial statements as a whole. | |||||||||||
At this time, although probable, it is not certain that the court will approve the settlement. If the court does not approve the settlement and the case proceeds, it is not possible to predict whether Marcum ultimately will be permitted to proceed as a class action under the FCRA, and no assurances can be given that the Company will be successful in the defense on the merits or otherwise. At this stage in the proceedings, the Company cannot estimate either the size of any potential class or the value of the claims asserted by the plaintiffs. | |||||||||||
In September 2011, the Chicago Regional Office of the United States Equal Employment Opportunity Commission ("EEOC" or "Commission") notified the Company of a cause finding related to the Company's criminal background check policy. The cause finding alleges that Dollar General's criminal background check policy, which excludes from employment individuals with certain criminal convictions for specified periods, has a disparate impact on African-American candidates and employees in violation of Title VII of the Civil Rights Act of 1964, as amended ("Title VII"). | |||||||||||
The Company and the EEOC engaged in the statutorily required conciliation process, and despite the Company's good faith efforts to resolve the matter, the Commission notified the Company on July 26, 2012 of its view that conciliation had failed. | |||||||||||
On June 11, 2013, the EEOC filed a lawsuit in the United States District Court for the Northern District of Illinois entitled Equal Opportunity Commission v. Dolgencorp, LLC d/b/a Dollar General (Case No. 1:13-cv-04307) in which the Commission alleges that the Company's criminal background check policy has a disparate impact on "Black Applicants" in violation of Title VII and seeks to recover monetary damages and injunctive relief on behalf of a class of "Black Applicants." The Company filed its Answer to the Complaint on August 9, 2013. | |||||||||||
On January 29, 2014, the court entered an order, which, among other things, bifurcates the issues of liability and damages during discovery and at trial. Under this order, fact discovery relating to liability is to be completed by September 15, 2014. A status conference is scheduled for June 17, 2014. | |||||||||||
The Company believes that its criminal background check process is both lawful and necessary to a safe environment for its employees and customers and the protection of its assets and shareholders' investments. The Company also does not believe that this matter is amenable to class or similar treatment. However, at this time, it is not possible to predict whether the action will ultimately be permitted to proceed as a class or in a similar fashion or the size of any putative class. Likewise, at this time, it is not possible to estimate the value of the claims asserted, and, therefore, the Company cannot estimate the potential exposure or range of potential loss. If the matter were to proceed successfully as a class or similar action or the Company is unsuccessful in its defense efforts as to the merits of the action, it could have a material adverse effect on the Company's consolidated financial statements as a whole. | |||||||||||
On May 23, 2013, a lawsuit entitled Juan Varela v. Dolgen California and Does 1 through 50 (Case No. RIC 1306158) ("Varela") was filed in the Superior Court of the State of California for the County of Riverside in which the plaintiff alleges that he and other "key carriers" were not provided with meal and rest periods in violation of California law and seeks to recover alleged unpaid wages, injunctive relief, consequential damages, pre-judgment interest, statutory penalties and attorneys' fees and costs. The Varela plaintiff seeks to represent a putative class of California "key carriers" as to these claims. The Varela plaintiff also asserts a claim for unfair business practices and seeks to proceed under California's Private Attorney General Act ("PAGA"). | |||||||||||
The Company removed the action to the United States District Court for the Central District of California (Case No. 5:13-cv-01172VAP-SP) on July 1, 2013, and filed its Answer to the Complaint on July 1, 2013. On July 30, 2013, the plaintiff moved to remand the action to state court. The Company's response to that motion was filed on August 19, 2013. | |||||||||||
On September 13, 2013, the court granted plaintiff's motion and remanded the case. The Company filed a Petition for Permission to Appeal to the United States Court of Appeals for the Ninth Circuit on September 23, 2013. The Petition for Permission to Appeal is pending. | |||||||||||
A status conference has been scheduled by the Superior Court for July 23, 2014. The parties have agreed to informally stay discovery pending a decision by the Ninth Circuit on the Petition for Permission to Appeal. | |||||||||||
Similarly, on June 6, 2013, a lawsuit entitled Victoria Lee Dinger Main v. Dolgen California, LLC and Does 1 through 100 (Case No. 34-2013-00146129) ("Main") was filed in the Superior Court of the State of California for the County of Sacramento. The Main plaintiff alleges that she and other "key carriers" were not provided with meal and rest periods, accurate wage statements and appropriate pay upon termination in violation of California wage and hour laws and seeks to recover alleged unpaid wages, declaratory relief, restitution, statutory penalties and attorneys' fees and costs. The Main plaintiff seeks to represent a putative class of California "key carriers" as to these claims. The Main plaintiff also asserts a claim for unfair business practices and seeks to proceed under the PAGA. | |||||||||||
The Company removed this action to the United States District Court for the Eastern District of California (Case No. 2:13-cv-01637-MCE-KJN) on August 7, 2013, and filed its Answer to the Complaint on August 6, 2013. On August 29, 2013, the plaintiff moved to remand the action to state court. The Company's response to that motion was filed on September 19, 2013. On October 28, 2013, the court granted plaintiff's motion and remanded the case. The Company filed a Petition for Permission to Appeal to the United States Court of Appeals for the Ninth Circuit on November 7, 2013. The plaintiff filed its opposition brief on November 15, 2013. The Petition remains pending. | |||||||||||
On February 6, 2014, the Superior Court referred the matter to the Trial Setting Process and ordered the parties to confer and agree upon a date for trial and a mandatory settlement conference. The parties are to advise the Court of the date agreed upon for a trial and settlement conference no later than January 30, 2015. If the parties are unable to agree upon a date by such time, the Court will assign the next available dates. | |||||||||||
The Company believes that its policies and practices comply with California law and that the Varela and Main actions are not appropriate for class or similar treatment. The Company intends to vigorously defend these actions; however, at this time, it is not possible to predict whether the Varela or Main action ultimately will be permitted to proceed as a class, and no assurances can be given that the Company will be successful in its defense of either action on the merits or otherwise. Similarly, at this time the Company cannot estimate either the size of any potential class or the value of the claims asserted in the Varela and Main actions. For these reasons, the Company is unable to estimate any potential loss or range of loss in either matter; however, if the Company is not successful in its defense efforts, the resolution of either action could have a material adverse effect on the Company's consolidated financial statements as a whole. | |||||||||||
On May 31, 2013, a lawsuit entitled Judith Wass v. Dolgen Corp, LLC (Case No. 13PO-CC00039) ("Wass") was filed in the Circuit Court of Polk County, Missouri. The Wass plaintiff seeks to proceed collectively on behalf of a nationwide class of similarly situated non-exempt store employees who allegedly were not properly paid for certain breaks in violation of the FLSA. The Wass plaintiff seeks back wages (including overtime), injunctive and declaratory relief, liquidated damages, pre- and post-judgment interest, and attorneys' fees and costs. | |||||||||||
On July 11, 2013, the Company removed this action to the United States District Court for the Western District of Missouri (Case No. 6:113-cv-03267-JFM). The Company filed its Answer on July 18, 2013. The plaintiff's motion for conditional certification is due to be filed on or before March 28, 2014. The Company's response is due to be filed on or before April 25, 2014. | |||||||||||
Similarly, on July 2, 2013, a lawsuit entitled Rachel Buttry and Jennifer Peters v. Dollar General Corp. (Case no. 3:13-cv-00652) ("Buttry") was filed in the United States District Court for the Middle District of Tennessee. The Buttry plaintiffs seek to proceed on a nationwide collective basis under the FLSA and as a statewide class under Tennessee law on behalf of non-exempt store employees who allegedly were not properly paid for certain breaks. The Buttry plaintiffs seek back wages (including overtime), injunctive and declaratory relief, liquidated damages, compensatory and economic damages, "consequential" and "incidental" damages, pre-judgment and post-judgment interest, and attorneys' fees and costs. | |||||||||||
The Company filed its Answer on August 7, 2013. The plaintiffs filed their motion for conditional certification of their FLSA on December 5, 2013. The Company filed its response to that motion on February 3, 2014. The court set a hearing on the plaintiffs' motion for conditional certification of their FLSA claims on April 2, 2014. | |||||||||||
The plaintiffs' motion for certification of their statewide claims is due to be filed on or before September 22, 2014. The court has set this matter for trial on February 17, 2015. | |||||||||||
The Company believes that its wage and hour policies and practices comply with both the FLSA and state law, including Tennessee law, and that the Wass and Buttry actions are not appropriate for collective or class treatment. The Company intends to vigorously defend these actions; however, at this time, it is not possible to predict whether the Wass or Buttry action ultimately will be permitted to proceed collectively or as a class, and no assurances can be given that the Company will be successful in its defense of these actions on the merits or otherwise. Similarly, at this time the Company cannot estimate either the size of any potential class or the value of the claims asserted in the Wass and Buttry actions. For these reasons, the Company is unable to estimate any potential loss or range of loss in these matters; however, if the Company is not successful in its defense efforts, the resolution of one or more of these actions could have a material adverse effect on the Company's consolidated financial statements as a whole. | |||||||||||
On September 16, 2013, a lawsuit entitled Lisa Kocmich v. DolgenCorp, LLC (Case No. 2013CA005841AX) ("Kocmich") was filed in the Circuit Court of Manatee County, Florida. The Kocmich plaintiff seeks to proceed on a nationwide collective basis under the FLSA on behalf of all similarly situated non-exempt store employees who allegedly were not paid for all hours worked (including overtime) as required by the FLSA. The Kocmich plaintiff seeks back wages, liquidated damages and attorneys' fees and costs. | |||||||||||
The Company removed this matter to the United States District Court for the Middle District of Florida (Case No. 8:13-cv-02705-RAL-MAP) on October 21, 2013. The Company filed its Answer on November 4, 2013. | |||||||||||
The parties have reached an agreement to resolve the Kocmich matter for an amount that is immaterial to the Company's consolidated financial statements as a whole. | |||||||||||
On May 20, 2011, a lawsuit entitled Winn-Dixie Stores, Inc., et al. v. Dolgencorp, LLC was filed in the United States District Court for the Southern District of Florida (Case No. 9:11-cv-80601-DMM) ("Winn-Dixie") in which the plaintiffs allege that the sale of food and other items in approximately 55 of the Company's stores, each of which allegedly is or was at some time co-located in a shopping center with one of plaintiffs' stores, violates restrictive covenants that plaintiffs contend are binding on the occupants of the shopping centers. Plaintiffs sought damages and an injunction limiting the sale of food and other items in those stores. Although plaintiffs did not make a demand for any specific amount of damages, documents prepared and produced by plaintiffs during discovery suggested that plaintiffs would seek as much as $47 million although the court limited their ability to prove such damages. The case was consolidated with similar cases against Big Lots and Dollar Tree. The court issued an order on August 10, 2012 in which it (i) dismissed all claims for damages, (ii) dismissed claims for injunctive relief for all but four stores, and (iii) directed the Company to report to the court on its compliance with restrictive covenants at the four stores for which it did not dismiss the claims for injunctive relief. The Company believes that compliance with the August 2012 ruling will have no material adverse impact on the Company or its consolidated financial statements. | |||||||||||
On August 28, 2012, plaintiffs filed a notice of appeal with the United States Court of Appeals for the Eleventh Circuit (Docket No. 12-14527-B). Oral argument was conducted on January 16, 2014, and the appellate court rendered its decision on March 5, 2014, affirming in part and reversing in part the trial court's decision. Specifically, the appellate court affirmed the trial court's dismissal of plaintiffs' claim for monetary damages but reversed the trial court's decision denying injunctive relief as to thirteen additional stores and remanded for further proceedings. At this time, the Company is unable to predict whether the trial court will enter an injunction as to any of the additional stores at issue; however, the Company does not believe that such an injunction, even if entered as to each remaining additional store at issue, would have a material adverse effect on the Company or its consolidated financial statements as a whole. | |||||||||||
The Company also is unable to predict whether the plaintiffs will seek further appellate review of the trial court's dismissal of plaintiff's claim for damages. If plaintiffs were to obtain further appellate review, and the Company is unsuccessful in its defense of such appeal, the outcome could have a material adverse effect on the Company's consolidated financial statements as a whole. | |||||||||||
From time to time, the Company is a party to various other legal actions involving claims incidental to the conduct of its business, including actions by employees, consumers, suppliers, government agencies, or others through private actions, class actions, administrative proceedings, regulatory actions or other litigation, including without limitation under federal and state employment laws and wage and hour laws. The Company believes, based upon information currently available, that such other litigation and claims, both individually and in the aggregate, will be resolved without a material adverse effect on the Company's financial statements as a whole. However, litigation involves an element of uncertainty. Future developments could cause these actions or claims to have a material adverse effect on the Company's results of operations, cash flows, or financial position. In addition, certain of these lawsuits, if decided adversely to the Company or settled by the Company, may result in liability material to the Company's financial position or may negatively affect operating results if changes to the Company's business operation are required. | |||||||||||
Benefit_plans
Benefit plans | 12 Months Ended |
Jan. 31, 2014 | |
Benefit plans | ' |
Benefit plans | ' |
9. Benefit plans | |
The Dollar General Corporation 401(k) Savings and Retirement Plan, which became effective on January 1, 1998, is a safe harbor defined contribution plan and is subject to the Employee Retirement and Income Security Act ("ERISA"). | |
A participant's right to claim a distribution of his or her account balance is dependent on the plan, ERISA guidelines and Internal Revenue Service regulations. All active participants are fully vested in all contributions to the 401(k) plan. During 2013, 2012 and 2011, the Company expensed approximately $13.0 million, $11.9 million and $10.9 million, respectively, for matching contributions. | |
The Company also has a nonqualified supplemental retirement plan ("SERP") and compensation deferral plan ("CDP"), known as the Dollar General Corporation CDP/SERP Plan, for a select group of management and other key employees. The Company incurred compensation expense for these plans of approximately $1.2 million, $1.4 million and $1.7 million in 2013, 2012 and 2011, respectively. | |
The CDP/SERP Plan assets are invested in accounts selected by the Company's Compensation Committee or its delegate. These investments are classified as trading securities and the associated deferred compensation liability is reflected in the consolidated balance sheets as further discussed in Note 6. | |
Sharebased_payments
Share-based payments | 12 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Share-based payments | ' | ||||||||||||||||
Share-based payments | ' | ||||||||||||||||
10. Share-based payments | |||||||||||||||||
The Company accounts for share-based payments in accordance with applicable accounting standards, under which the fair value of each award is separately estimated and amortized into compensation expense over the service period. The fair value of the Company's stock option grants are estimated on the grant date using the Black-Scholes-Merton valuation model. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. | |||||||||||||||||
On July 6, 2007, the Company's Board of Directors adopted the 2007 Stock Incentive Plan for Key Employees, which plan was subsequently amended (as so amended, the "Plan"). The Plan allows the granting of stock options, stock appreciation rights, and other stock-based awards or dividend equivalent rights to key employees, directors, consultants or other persons having a service relationship with the Company, its subsidiaries and certain of its affiliates. The number of shares of Company common stock authorized for grant under the Plan is 31,142,858. As of January 31, 2014, 19,871,333 of such shares are available for future grants. | |||||||||||||||||
Through May 2011, a significant majority of the Company's share-based awards were stock options that vest solely upon the continued employment of the recipient ("MSA Time Options") and options that vest upon the achievement of predetermined annual or cumulative financial-based targets ("MSA Performance Options"). MSA Time and MSA Performance Options generally vest ratably on an annual basis over a period of approximately five years, with limited exceptions. | |||||||||||||||||
Both the MSA Time Options and the MSA Performance Options are subject to various provisions set forth in a management stockholder's agreement ("MSA") entered into with each option holder. The MSA contains certain put and call rights and other provisions pertaining to both the option holder and the Company which may, in certain scenarios, affect the holder's ability to sell or realize market value for these instruments and any shares acquired thereunder. | |||||||||||||||||
Assuming specified financial targets are met, the MSA Performance Options vest as of the Company's fiscal year end, and as a result the initial and final tranche of each MSA Performance Option grant may be prorated based upon the date of grant. In the event the performance target is not achieved in any given annual performance period, the MSA Performance Options for that period may still subsequently vest, provided that a cumulative performance target is achieved. The MSA Time Options and MSA Performance Options have a contractual term of 10 years and an exercise price equal to the fair value of the underlying common stock on the date of grant. | |||||||||||||||||
The Company has also issued share-based awards that are not subject to an MSA. These awards have generally been in the form of stock options, restricted stock units and performance share units. Stock options granted to employees and board members generally vest ratably on an annual basis over a four-year and three-year period, respectively. Restricted stock units generally vest ratably over a three-year period. Performance share units generally vest ratably over a three-year period, provided that certain minimum performance criteria are met in the year of grant. With limited exceptions, the performance share unit and restricted stock unit awards are automatically converted into shares of common stock on the vesting date. | |||||||||||||||||
The weighted average for key assumptions used in determining the fair value of all stock options granted in the years ended January 31, 2014, February 1, 2013, and February 3, 2012, and a summary of the methodology applied to develop each assumption, are as follows: | |||||||||||||||||
January 31, | February 1, | February 3, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Expected stock price volatility | 26.2 | % | 26.8 | % | 38.7 | % | |||||||||||
Weighted average risk-free interest rate | 1.2 | % | 1.5 | % | 2.3 | % | |||||||||||
Expected term of options (years) | 6.3 | 6.3 | 6.8 | ||||||||||||||
Expected dividend yield—This is an estimate of the expected dividend yield on the Company's stock. An increase in the dividend yield will decrease compensation expense. | |||||||||||||||||
Expected stock price volatility—This is a measure of the amount by which the price of the Company's common stock has fluctuated or is expected to fluctuate. For awards issued under the Plan through October 2011, the expected volatilities were based upon the historical volatilities of a peer group of companies deemed to be comparable. Beginning in November 2011, the expected volatilities for awards are based on the historical volatility of the Company's publicly traded common stock. An increase in the expected volatility will increase compensation expense. | |||||||||||||||||
Weighted average risk-free interest rate—This is the U.S. Treasury rate for the week of the grant having a term approximating the expected life of the option. An increase in the risk-free interest rate will increase compensation expense. | |||||||||||||||||
Expected term of options—This is the period of time over which the options granted are expected to remain outstanding. The Company has estimated the expected term as the mid-point between the vesting date and the contractual term of the option. An increase in the expected term will increase compensation expense. | |||||||||||||||||
A summary of MSA Time Options activity during the year ended January 31, 2014 is as follows: | |||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Options | Average | Remaining | Intrinsic | |||||||||||||
Issued | Exercise Price | Contractual | Value | ||||||||||||||
Term in Years | |||||||||||||||||
Balance, February 1, 2013 | 1,350,642 | $ | 13.69 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (871,037 | ) | 11.11 | ||||||||||||||
Canceled | (15,042 | ) | 25.17 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | 464,563 | $ | 18.15 | 5.6 | $ | 17,730 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Exercisable at January 31, 2014 | 292,807 | $ | 15.43 | 5.3 | $ | 11,973 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
The weighted average grant date fair value of MSA Time Options granted during 2011 was $13.47. The intrinsic value of MSA Time Options exercised during 2013, 2012 and 2011 was $39.4 million, $117.3 million and $41.4 million, respectively. | |||||||||||||||||
A summary of MSA Performance Options activity during the year ended January 31, 2014 is as follows: | |||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Options | Average | Remaining | Intrinsic | |||||||||||||
Issued | Exercise Price | Contractual | Value | ||||||||||||||
Term in Years | |||||||||||||||||
Balance, February 1, 2013 | 1,264,826 | $ | 13.96 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (868,441 | ) | 11.28 | ||||||||||||||
Canceled | (20,076 | ) | 22.69 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | 376,309 | $ | 19.68 | 5.8 | $ | 13,790 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Exercisable at January 31, 2014 | 336,716 | $ | 18.56 | 5.7 | $ | 12,714 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
The weighted average grant date fair value of MSA Performance Options granted during 2011 was $13.47. The intrinsic value of MSA Performance Options exercised during 2013, 2012 and 2011 was $39.1 million, $106.4 million and $41.8 million, respectively. | |||||||||||||||||
A summary of the Company's other stock option activity during the year ended January 31, 2014 is as follows: | |||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Options | Average | Remaining | Intrinsic | |||||||||||||
Issued | Exercise Price | Contractual | Value | ||||||||||||||
Term in Years | |||||||||||||||||
Balance, February 1, 2013 | 1,211,771 | $ | 42.77 | ||||||||||||||
Granted | 875,269 | 48.8 | |||||||||||||||
Exercised | (53,813 | ) | 41.51 | ||||||||||||||
Canceled | (192,685 | ) | 46.69 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | 1,840,542 | $ | 45.26 | 8.5 | $ | 20,356 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Exercisable at January 31, 2014 | 369,424 | $ | 38.51 | 7.4 | $ | 6,580 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
The weighted average grant date fair value of other options granted was $13.86, $13.54 and $13.14 during 2013, 2012 and 2011, respectively. The intrinsic value of other options exercised during 2013, 2012, and 2011 was $0.8 million, $0.3 million and $1.6 million, respectively. | |||||||||||||||||
The number of performance share unit awards earned is based upon the Company's annual financial performance in the year of grant as specified in the award agreement. A summary of performance share unit award activity during the year ended January 31, 2014 is as follows: | |||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Units | Intrinsic | |||||||||||||||
Issued | Value | ||||||||||||||||
Balance, February 1, 2013 | 162,688 | ||||||||||||||||
Granted | 72,846 | ||||||||||||||||
Converted to common stock | (54,973 | ) | |||||||||||||||
Canceled | (21,142 | ) | |||||||||||||||
| | | | | | | | ||||||||||
Balance, January 31, 2014 | 159,419 | $ | 8,978 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The weighted average grant date fair value of performance share units granted was $48.11 and $45.25 during 2013 and 2012, respectively. No performance share units were granted during 2011. | |||||||||||||||||
A summary of restricted stock unit award activity during the year ended January 31, 2014 is as follows: | |||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Units | Intrinsic | |||||||||||||||
Issued | Value | ||||||||||||||||
Balance, February 1, 2013 | 288,927 | ||||||||||||||||
Granted | 509,440 | ||||||||||||||||
Converted to common stock | (98,063 | ) | |||||||||||||||
Canceled | (83,777 | ) | |||||||||||||||
| | | | | | | | ||||||||||
Balance, January 31, 2014 | 616,527 | $ | 34,723 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The weighted average grant date fair value of restricted stock units granted was $48.20, $45.33 and $33.16 during 2013, 2012 and 2011, respectively. | |||||||||||||||||
In March 2012, the Company issued a performance-based award of 326,037 shares of restricted stock to its Chairman and Chief Executive Officer. This restricted stock award had a fair value on the grant date of $45.25 per share and may vest in the future if certain specified earnings per share targets for fiscal years 2014 and 2015 are achieved. | |||||||||||||||||
The Company currently believes that the performance targets related to the unvested MSA Performance Options and restricted stock will be achieved. If such goals are not met, and no event occurs which would result in the acceleration of vesting of these awards as specified in the underlying agreements, future compensation cost relating to these unvested awards will not be recognized. | |||||||||||||||||
At January 31, 2014, the total unrecognized compensation cost related to nonvested stock-based awards was $53.5 million with an expected weighted average expense recognition period of 1.5 years. | |||||||||||||||||
In October 2007, the Company's Board of Directors adopted an Equity Appreciation Rights Plan, which plan was later amended and restated (as amended and restated, the "Rights Plan"). The Rights Plan provides for the granting of equity appreciation rights to nonexecutive managerial employees. During 2011, 818,847 equity appreciation rights were granted, 768,561 of such rights vested, primarily in conjunction with the Company's December 2011 stock offering and 50,286 of such rights were cancelled. No such rights are outstanding as of January 31, 2014. | |||||||||||||||||
The fair value method of accounting for share-based awards resulted in share-based compensation expense (a component of SG&A expenses) and a corresponding reduction in net income before income taxes as follows: | |||||||||||||||||
(In thousands) | Stock | Performance | Restricted | Equity | Total | ||||||||||||
Options | Share Units | Stock Units | Appreciation | ||||||||||||||
Rights | |||||||||||||||||
Year ended January 31, 2014 | |||||||||||||||||
Pre-tax | $ | 7,634 | $ | 3,448 | $ | 9,879 | $ | — | $ | 20,961 | |||||||
Net of tax | $ | 4,649 | $ | 2,100 | $ | 6,016 | $ | — | $ | 12,765 | |||||||
Year ended February 1, 2013 | |||||||||||||||||
Pre-tax | $ | 14,078 | $ | 4,082 | $ | 3,504 | $ | — | $ | 21,664 | |||||||
Net of tax | $ | 8,578 | $ | 2,487 | $ | 2,135 | $ | — | $ | 13,200 | |||||||
Year ended February 3, 2012 | |||||||||||||||||
Pre-tax | $ | 15,121 | $ | — | $ | 129 | $ | 8,731 | $ | 23,981 | |||||||
Net of tax | $ | 9,208 | $ | — | $ | 79 | $ | 5,317 | $ | 14,604 |
Related_party_transactions
Related party transactions | 12 Months Ended |
Jan. 31, 2014 | |
Related party transactions | ' |
Related party transactions | ' |
11. Related party transactions | |
From time to time the Company has conducted business with entities deemed to be related parties under U.S. GAAP, including Kohlberg Kravis Roberts & Co. L.P. or "KKR" and Goldman, Sachs & Co. For purposes of this disclosure, reference to these entities includes their respective affiliates. In recent years, KKR and Goldman Sachs & Co. owned a significant percentage of the Company's common stock, and collectively held three seats on the Company's Board of Directors. As of January 31, 2014, KKR and Goldman, Sachs & Co. have liquidated their investment in the Company's common stock and no one directly employed by either KKR or Goldman, Sachs & Co. remained on the Company's Board of Directors. | |
KKR and Goldman, Sachs & Co. served in various capacities related to the amendments and refinancing of the Company's debt discussed in further detail in Note 5. In connection with these efforts in 2013 and 2012, the Company paid KKR fees of $0.7 million and $1.6 million, respectively, and paid Goldman, Sachs & Co. fees of $2.2 million and $1.7 million, respectively. | |
KKR and Goldman, Sachs & Co. served as underwriters in connection with multiple secondary offerings of the Company's common stock held by certain existing shareholders that were executed at various dates in 2013, 2012 and 2011. The Company did not sell shares of common stock, receive proceeds from such shareholders' sales of shares of common stock or pay any underwriting fees in connection with any of the secondary offerings. Certain members of the Company's management exercised registration rights in connection with such offerings. | |
Segment_reporting
Segment reporting | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Segment reporting | ' | ||||||||||
Segment reporting | ' | ||||||||||
12. Segment reporting | |||||||||||
The Company manages its business on the basis of one reportable segment. See Note 1 for a brief description of the Company's business. As of January 31, 2014, all of the Company's operations were located within the United States with the exception of a Hong Kong subsidiary, and a liaison office in India, the collective assets and revenues of which are not material. The following net sales data is presented in accordance with accounting standards related to disclosures about segments of an enterprise. | |||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Classes of similar products: | |||||||||||
Consumables | $ | 13,161,825 | $ | 11,844,846 | $ | 10,833,735 | |||||
Seasonal | 2,259,516 | 2,172,399 | 2,051,098 | ||||||||
Home products | 1,115,648 | 1,061,573 | 1,005,219 | ||||||||
Apparel | 967,178 | 943,310 | 917,136 | ||||||||
| | | | | | | | | | | |
Net sales | $ | 17,504,167 | $ | 16,022,128 | $ | 14,807,188 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Common_stock_transactions
Common stock transactions | 12 Months Ended |
Jan. 31, 2014 | |
Common stock transactions | ' |
Common stock transactions | ' |
13. Common stock transactions | |
On August 29, 2012, the Company's Board of Directors authorized a common stock repurchase program, which was increased on March 19, 2013 and again on December 4, 2013. As of January 31, 2014, a total of $2.0 billion had been authorized under the program and $1.02 billion remained available for repurchase. The repurchase authorization has no expiration date and allows repurchases from time to time in the open market or in privately negotiated transactions. The timing and number of shares purchased depends on a variety of factors, such as price, market conditions, compliance with the covenants and restrictions under our debt agreements and other factors. Repurchases under the program may be funded from available cash or borrowings under the Company's credit facilities discussed in further detail in Note 5. | |
During the years ended January 31, 2014, February 1, 2013, and February 3, 2012, the Company repurchased approximately 11.0 million shares of its common stock at a total cost of $620.1 million, approximately 14.4 million shares at a total cost of $671.4 million, and approximately 4.9 million shares of its common stock at a total cost of $185.0 million, respectively, pursuant to its common stock repurchase programs. | |
Quarterly_financial_data_unaud
Quarterly financial data (unaudited) | 12 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Quarterly financial data (unaudited) | ' | |||||||||||||
Quarterly financial data (unaudited) | ' | |||||||||||||
14. Quarterly financial data (unaudited) | ||||||||||||||
The following is selected unaudited quarterly financial data for the fiscal years ended January 31, 2014 and February 1, 2013. Each quarterly period listed below was a 13-week accounting period. The sum of the four quarters for any given year may not equal annual totals due to rounding. | ||||||||||||||
(In thousands) | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
2013:00:00 | ||||||||||||||
Net sales | $ | 4,233,733 | $ | 4,394,651 | $ | 4,381,838 | $ | 4,493,945 | ||||||
Gross profit | 1,295,148 | 1,377,290 | 1,328,493 | 1,434,811 | ||||||||||
Operating profit | 395,000 | 412,822 | 390,241 | 538,122 | ||||||||||
Net income | 220,083 | 245,475 | 237,385 | 322,173 | ||||||||||
Basic earnings per share | 0.67 | 0.76 | 0.74 | 1.01 | ||||||||||
Diluted earnings per share | 0.67 | 0.75 | 0.74 | 1.01 | ||||||||||
(In thousands) | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
2012:00:00 | ||||||||||||||
Net sales | $ | 3,901,205 | $ | 3,948,655 | $ | 3,964,647 | $ | 4,207,621 | ||||||
Gross profit | 1,228,256 | 1,263,223 | 1,226,123 | 1,367,799 | ||||||||||
Operating profit | 384,324 | 387,214 | 361,389 | 522,349 | ||||||||||
Net income | 213,415 | 214,140 | 207,685 | 317,422 | ||||||||||
Basic earnings per share | 0.64 | 0.64 | 0.62 | 0.97 | ||||||||||
Diluted earnings per share | 0.63 | 0.64 | 0.62 | 0.97 | ||||||||||
As discussed in Note 5, in the first quarter of 2013, the Company terminated its senior secured credit facilities, resulting in a pretax loss of $18.9 million ($11.5 million net of tax, or $0.04 per diluted share) which was recognized as Other (income) expense. | ||||||||||||||
As discussed in Note 8, in the second quarter of 2013, the Company recorded expenses associated with an agreement to settle a legal matter, resulting in a pretax loss of $8.5 million ($5.2 million net of tax, or $0.02 per diluted share) which was recognized as Selling, general and administrative expense. | ||||||||||||||
As discussed in Note 5, in the second quarter of 2012, the Company redeemed its outstanding senior subordinated notes due 2017, resulting in a pretax loss of $29.0 million ($17.7 million net of tax, or $0.05 per diluted share) which was recognized as Other (income) expense. | ||||||||||||||
Basis_of_presentation_and_acco1
Basis of presentation and accounting policies (Policies) | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Accounting policies | ' | |||||||||
Basis of presentation | ' | |||||||||
Basis of presentation | ||||||||||
These notes contain references to the years 2013, 2012, and 2011, which represent fiscal years ended January 31, 2014, February 1, 2013, and February 3, 2012, respectively. The Company's fiscal year ends on the Friday closest to January 31. The 2013 and 2012 years were 52-week accounting periods, while 2011 was a 53-week accounting period. The consolidated financial statements include all subsidiaries of the Company, except for its not-for-profit subsidiary which the Company does not control. Intercompany transactions have been eliminated. | ||||||||||
The Company sells general merchandise on a retail basis through 11,132 stores (as of January 31, 2014) in 40 states covering most of the southern, southwestern, midwestern and eastern United States. The Company owns distribution centers ("DCs") in Scottsville, Kentucky; South Boston, Virginia; Alachua, Florida; Zanesville, Ohio; Jonesville, South Carolina; Marion, Indiana; Bessemer, Alabama; and Bethel, Pennsylvania, and leases DCs in Ardmore, Oklahoma; Fulton, Missouri; Indianola, Mississippi; and Lebec, California. | ||||||||||
Cash and cash equivalents | ' | |||||||||
Cash and cash equivalents | ||||||||||
Cash and cash equivalents include highly liquid investments with insignificant interest rate risk and original maturities of three months or less when purchased. Such investments primarily consist of money market funds, bank deposits, certificates of deposit (which may include foreign time deposits), and commercial paper. The carrying amounts of these items are a reasonable estimate of their fair value due to the short maturity of these investments. | ||||||||||
Payments due from processors for electronic tender transactions classified as cash and cash equivalents totaled approximately $44.0 million and $45.2 million at January 31, 2014 and February 1, 2013, respectively. | ||||||||||
At January 31, 2014, the Company maintained cash balances to meet a $20 million minimum threshold set by insurance regulators, as further described below under "Insurance liabilities." | ||||||||||
Investments in debt and equity securities | ' | |||||||||
Investments in debt and equity securities | ||||||||||
The Company accounts for investments in debt and marketable equity securities as held-to-maturity, available-for-sale, or trading, depending on their classification. Debt securities categorized as held-to-maturity are stated at amortized cost. Debt and equity securities categorized as available-for-sale are stated at fair value, with any unrealized gains and losses, net of deferred income taxes, reported as a component of Accumulated other comprehensive loss. Trading securities (primarily mutual funds held pursuant to deferred compensation and supplemental retirement plans, as further discussed below in Notes 6 and 9) are stated at fair value, with changes in fair value recorded as a component of Selling, general and administrative ("SG&A") expense. | ||||||||||
For the years ended January 31, 2014, February 1, 2013, and February 3, 2012, gross realized gains and losses on the sales of available-for-sale securities were not material. The cost of securities sold is based upon the specific identification method. | ||||||||||
Merchandise inventories | ' | |||||||||
Merchandise inventories | ||||||||||
Inventories are stated at the lower of cost or market with cost determined using the retail last-in, first-out ("LIFO") method as this method results in a better matching of costs and revenues. Under the Company's retail inventory method ("RIM"), the calculation of gross profit and the resulting valuation of inventories at cost are computed by applying a calculated cost-to-retail inventory ratio to the retail value of sales at a department level. The use of the RIM will result in valuing inventories at the lower of cost or market ("LCM") if markdowns are currently taken as a reduction of the retail value of inventories. Costs directly associated with warehousing and distribution are capitalized into inventory. | ||||||||||
The excess of current cost over LIFO cost was approximately $90.9 million and $101.9 million at January 31, 2014 and February 1, 2013, respectively. Current cost is determined using the RIM on a first-in, first-out basis. Under the LIFO inventory method, the impacts of rising or falling market price changes increase or decrease cost of sales (the LIFO provision or benefit). The Company recorded a LIFO provision (benefit) of $(11.0) million in 2013, $1.4 million in 2012, and $47.7 million in 2011, which is included in cost of goods sold in the consolidated statements of income. | ||||||||||
The Company purchases its merchandise from a wide variety of suppliers. Approximately 8% and 7% of the Company's purchases in 2013 were made from the Company's largest and second largest suppliers, respectively. | ||||||||||
Vendor rebates | ' | |||||||||
Vendor rebates | ||||||||||
The Company accounts for all cash consideration received from vendors in accordance with applicable accounting standards pertaining to such arrangements. Cash consideration received from a vendor is generally presumed to be a rebate or an allowance and is accounted for as a reduction of merchandise purchase costs as earned. However, certain specific, incremental and otherwise qualifying SG&A expenses related to the promotion or sale of vendor products may be offset by cash consideration received from vendors, in accordance with arrangements such as cooperative advertising, when earned for dollar amounts up to but not exceeding actual incremental costs. | ||||||||||
Property and equipment | ' | |||||||||
Property and equipment | ||||||||||
As the result of a merger transaction in 2007, the Company's property and equipment was recorded at estimated fair values. Property and equipment acquired subsequent to the merger has been recorded at cost. The Company records depreciation and amortization on a straight-line basis over the assets' estimated useful lives. The Company's property and equipment balances and depreciable lives are summarized as follows: | ||||||||||
(In thousands) | Depreciable | January 31, | February 1, | |||||||
Life | 2014 | 2013 | ||||||||
Land | Indefinite | $ | 163,448 | $ | 176,861 | |||||
Land improvements | 20 | 48,566 | 80,834 | |||||||
Buildings | 39 - 40 | 765,555 | 773,835 | |||||||
Leasehold improvements | (a) | 326,122 | 279,351 | |||||||
Furniture, fixtures and equipment | 10-Mar | 2,078,893 | 1,828,573 | |||||||
Construction in progress | 70,332 | 87,444 | ||||||||
| | | | | | | | | | |
3,452,916 | 3,226,898 | |||||||||
Less accumulated depreciation and amortization | 1,372,611 | 1,138,233 | ||||||||
| | | | | | | | | | |
Net property and equipment | $ | 2,080,305 | $ | 2,088,665 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
(a) | ||||||||||
amortized over the lesser of the life of the applicable lease term or the estimated useful life of the asset | ||||||||||
Depreciation expense related to property and equipment was approximately $315.3 million, $277.2 million and $243.7 million for 2013, 2012 and 2011. Amortization of capital lease assets is included in depreciation expense. Interest on borrowed funds during the construction of property and equipment is capitalized where applicable. Interest costs of $1.2 million, $0.6 million and $1.5 million were capitalized in 2013, 2012 and 2011. | ||||||||||
Impairment of long-lived assets | ' | |||||||||
Impairment of long-lived assets | ||||||||||
When indicators of impairment are present, the Company evaluates the carrying value of long-lived assets, other than goodwill, in relation to the operating performance and future cash flows or the appraised values of the underlying assets. Generally, the Company's policy is to review for impairment stores open more than three years for which current cash flows from operations are negative. Impairment results when the carrying value of the assets exceeds the undiscounted future cash flows expected to be generated by the assets. The Company's estimate of undiscounted future cash flows is based upon historical operations of the stores and estimates of future store profitability which encompasses many factors that are subject to variability and difficult to predict. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value and the asset's estimated fair value. The fair value is estimated based primarily upon estimated future cash flows over the asset's remaining useful life (discounted at the Company's credit adjusted risk-free rate) or other reasonable estimates of fair market value. Assets to be disposed of are adjusted to the fair value less the cost to sell if less than the book value. | ||||||||||
The Company recorded impairment charges included in SG&A expense of approximately $0.5 million in 2013, $2.7 million in 2012 and $1.0 million in 2011, to reduce the carrying value of certain of its stores' assets. Such action was deemed necessary based on the Company's evaluation that such amounts would not be recoverable primarily due to insufficient sales or excessive costs resulting in negative current and projected future cash flows at these locations. | ||||||||||
Goodwill and other intangible assets | ' | |||||||||
Goodwill and other intangible assets | ||||||||||
The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Goodwill and intangible assets with indefinite lives are tested for impairment annually or more frequently if indicators of impairment are present. Other intangible assets are tested for impairment if indicators of impairment are present. Impaired assets are written down to fair value as required. No impairment of intangible assets has been identified during any of the periods presented. | ||||||||||
In accordance with accounting standards for goodwill and indefinite-lived intangible assets, an entity has the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill or an indefinite-lived intangible asset is impaired. If after such assessment an entity concludes that the asset is not impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the asset using a quantitative impairment test, and if impaired, the associated assets must be written down to fair value as described in further detail below. | ||||||||||
The quantitative goodwill impairment test is a two-step process that requires management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of the Company's reporting unit based on valuation techniques (including a discounted cash flow model using revenue and profit forecasts) and comparing that estimated fair value with the recorded carrying value, which includes goodwill. If the estimated fair value is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of the implied fair value of goodwill would require the Company to allocate the estimated fair value of its reporting unit to its assets and liabilities. Any unallocated fair value would represent the implied fair value of goodwill, which would be compared to its corresponding carrying value. | ||||||||||
The quantitative impairment test for intangible assets compares the fair value of the intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. | ||||||||||
Insurance liabilities | ' | |||||||||
Insurance liabilities | ||||||||||
The Company retains a significant portion of risk for its workers' compensation, employee health, general liability, property and automobile claim exposures. Accordingly, provisions are made for the Company's estimates of such risks. The undiscounted future claim costs for the workers' compensation, general liability, and health claim risks are derived using actuarial methods and are recorded as self-insurance reserves pursuant to Company policy. To the extent that subsequent claim costs vary from those estimates, future results of operations will be affected as the reserves are adjusted. | ||||||||||
Ashley River Insurance Company ("ARIC"), a South Carolina-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiary companies premiums to insure the retained workers' compensation and non-property general liability exposures. Pursuant to South Carolina insurance regulations, ARIC is required to maintain certain levels of cash and cash equivalents related to its self-insured exposures. ARIC currently insures no unrelated third-party risk. | ||||||||||
Operating leases and related liabilities | ' | |||||||||
Operating leases and related liabilities | ||||||||||
Rent expense is recognized over the term of the lease. The Company records minimum rental expense on a straight-line basis over the base, non-cancelable lease term commencing on the date that the Company takes physical possession of the property from the landlord, which normally includes a period prior to the store opening to make necessary leasehold improvements and install store fixtures. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. Tenant allowances, to the extent received, are recorded as deferred incentive rent and are amortized as a reduction to rent expense over the term of the lease. Any difference between the calculated expense and the amounts actually paid are reflected as a liability, with the current portion in Accrued expenses and other and the long-term portion in Other liabilities in the consolidated balance sheets, and totaled approximately $49.5 million and $43.6 million at January 31, 2014 and February 1, 2013, respectively. | ||||||||||
The Company recognizes contingent rental expense when the achievement of specified sales targets are considered probable. The amount expensed but not paid as of January 31, 2014 and February 1, 2013 was approximately $6.0 million and $7.7 million, respectively, and is included in Accrued expenses and other in the consolidated balance sheets. | ||||||||||
Fair value accounting | ' | |||||||||
Fair value accounting | ||||||||||
The Company utilizes accounting standards for fair value, which include the definition of fair value, the framework for measuring fair value, and disclosures about fair value measurements. Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | ||||||||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are based on an entity's own assumptions, as there is little, if any, observable market activity. In instances where the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||||||||||
The valuation of the Company's derivative financial instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. | ||||||||||
The Company incorporates credit valuation adjustments (CVAs) to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | ||||||||||
In connection with accounting standards for fair value measurement, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. However, the CVAs associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of January 31, 2014, the Company has assessed the significance of the impact of the CVAs on the overall valuation of its derivative positions and has determined that the CVAs are not significant to the overall valuation of its derivatives. Based on the Company's review of the CVAs by counterparty portfolio, the Company has determined that the CVAs are not significant to the overall portfolio valuations, as the CVAs are deemed to be immaterial in terms of basis points and are a very small percentage of the aggregate notional value of the derivative instruments. Although some of the CVAs as a percentage of termination value appear to be more significant, primary emphasis was placed on a review of the CVA in basis points and the percentage of the notional value. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | ||||||||||
Derivative financial instruments | ' | |||||||||
Derivative financial instruments | ||||||||||
The Company accounts for derivative financial instruments in accordance with applicable accounting standards for such instruments and hedging activities, which require that all derivatives are recorded on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. | ||||||||||
Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge a certain portion of its risk, even though hedge accounting does not apply or the Company elects not to apply the hedge accounting standards. | ||||||||||
The Company's derivative financial instruments, in the form of interest rate swaps at January 31, 2014, are related to variable interest rate risk exposures associated with the Company's long-term debt and were entered into in an effort to manage that risk. The counterparties to the Company's derivative agreements are all major international financial institutions. The Company continually monitors its position and the credit ratings of its counterparties and does not anticipate nonperformance by the counterparties. | ||||||||||
Revenue and gain recognition retail sales | ' | |||||||||
Revenue and gain recognition | ||||||||||
The Company recognizes retail sales in its stores at the time the customer takes possession of merchandise. All sales are net of discounts and estimated returns and are presented net of taxes assessed by governmental authorities that are imposed concurrent with those sales. The liability for retail merchandise returns is based on the Company's prior experience. The Company records gain contingencies when realized. | ||||||||||
Revenue and gain recognition gift cards | ' | |||||||||
The Company recognizes gift card sales revenue at the time of redemption. The liability for the gift cards is established for the cash value at the time of purchase. The liability for outstanding gift cards was approximately $4.3 million and $3.6 million at January 31, 2014 and February 1, 2013, respectively, and is recorded in Accrued expenses and other liabilities. Through January 31, 2014, the Company has not recorded any breakage income related to its gift card program. | ||||||||||
Advertising costs | ' | |||||||||
Advertising costs | ||||||||||
Advertising costs are expensed upon performance, "first showing" or distribution, and are reflected in SG&A expenses net of earned cooperative advertising amounts provided by vendors which are specific, incremental and otherwise qualifying expenses related to the promotion or sale of vendor products for dollar amounts up to but not exceeding actual incremental costs. Advertising costs were $70.5 million, $61.7 million and $50.4 million in 2013, 2012 and 2011, respectively. These costs primarily include promotional circulars, targeted circulars supporting new stores, television and radio advertising, in-store signage, and costs associated with the sponsorships of certain automobile racing activities. Vendor funding for cooperative advertising offset reported expenses by $31.9 million, $23.6 million and $20.8 million in 2013, 2012 and 2011, respectively. | ||||||||||
Share-based payments | ' | |||||||||
Share-based payments | ||||||||||
The Company recognizes compensation expense for share-based compensation based on the fair value of the awards on the grant date. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate may be adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the prior estimate. The forfeiture rate is the estimated percentage of options granted that are expected to be forfeited or canceled before becoming fully vested. The Company bases this estimate on historical experience or estimates of future trends, as applicable. An increase in the forfeiture rate will decrease compensation expense. | ||||||||||
The fair value of each option grant is separately estimated and amortized into compensation expense on a straight-line basis between the applicable grant date and each vesting date. The Company has estimated the fair value of all stock option awards as of the grant date by applying the Black-Scholes-Merton option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. | ||||||||||
The Company calculates compensation expense for restricted stock, share units and similar awards as the difference between the market price of the underlying stock on the grant date and the purchase price, if any. Such expense is recognized on a straight-line basis for graded awards or an accelerated basis for performance awards over the period in which the recipient earns the awards. | ||||||||||
Store pre-opening costs | ' | |||||||||
Store pre-opening costs | ||||||||||
Pre-opening costs related to new store openings and the related construction periods are expensed as incurred. | ||||||||||
Income taxes | ' | |||||||||
Income taxes | ||||||||||
Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company's consolidated financial statements or income tax returns. Deferred income tax expense or benefit is the net change during the year in the Company's deferred income tax assets and liabilities. | ||||||||||
The Company includes income tax related interest and penalties as a component of the provision for income tax expense. | ||||||||||
Income tax reserves are determined using a methodology which requires companies to assess each income tax position taken using a two-step process. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law which may be subject to change or varying interpretation. If the Company's determinations and estimates prove to be inaccurate, the resulting adjustments could be material to the Company's future financial results. | ||||||||||
Management estimates | ' | |||||||||
Management estimates | ||||||||||
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | ||||||||||
Accounting standards | ' | |||||||||
Accounting standards | ||||||||||
In February 2013, the Financial Accounting Standards Board issued an accounting standards update which requires additional disclosures with regard to an entity's balances of and amounts reclassified out of accumulated other comprehensive income in its financial statements. The Company adopted this guidance in the first quarter of 2013. All of the Company's related balances are cash flow hedges, and the required disclosures are reflected in Note 7 below. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. | ||||||||||
Reclassifications | ' | |||||||||
Reclassifications | ||||||||||
Certain reclassifications of the 2012 and 2011 amounts have been made to conform to the 2013 presentation. | ||||||||||
Basis_of_presentation_and_acco2
Basis of presentation and accounting policies (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Basis of presentation and accounting policies | ' | |||||||||
Schedule of property and equipment balances and depreciable lives | ' | |||||||||
(In thousands) | Depreciable | January 31, | February 1, | |||||||
Life | 2014 | 2013 | ||||||||
Land | Indefinite | $ | 163,448 | $ | 176,861 | |||||
Land improvements | 20 | 48,566 | 80,834 | |||||||
Buildings | 39 - 40 | 765,555 | 773,835 | |||||||
Leasehold improvements | (a) | 326,122 | 279,351 | |||||||
Furniture, fixtures and equipment | 10-Mar | 2,078,893 | 1,828,573 | |||||||
Construction in progress | 70,332 | 87,444 | ||||||||
| | | | | | | | | | |
3,452,916 | 3,226,898 | |||||||||
Less accumulated depreciation and amortization | 1,372,611 | 1,138,233 | ||||||||
| | | | | | | | | | |
Net property and equipment | $ | 2,080,305 | $ | 2,088,665 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
(a) | ||||||||||
amortized over the lesser of the life of the applicable lease term or the estimated useful life of the asset | ||||||||||
Schedule of accrued expenses and other liabilities | ' | |||||||||
(In thousands) | January 31, | February 1, | ||||||||
2014 | 2013 | |||||||||
Compensation and benefits | $ | 47,909 | $ | 76,981 | ||||||
Insurance | 84,697 | 86,189 | ||||||||
Taxes (other than taxes on income) | 104,990 | 89,329 | ||||||||
Other | 130,982 | 104,939 | ||||||||
| | | | | | | | |||
$ | 368,578 | $ | 357,438 | |||||||
| | | | | | | | |||
| | | | | | | | |||
Schedule of noncurrent other liabilities | ' | |||||||||
(In thousands) | January 31, | February 1, | ||||||||
2014 | 2013 | |||||||||
Compensation and benefits | $ | 17,604 | $ | 18,404 | ||||||
Insurance | 145,162 | 137,451 | ||||||||
Income tax related reserves | 18,802 | 23,383 | ||||||||
Deferred gain on sale leaseback | 62,693 | — | ||||||||
Other | 52,285 | 46,161 | ||||||||
| | | | | | | | |||
$ | 296,546 | $ | 225,399 | |||||||
| | | | | | | | |||
| | | | | | | | |||
Goodwill_and_other_intangible_1
Goodwill and other intangible assets (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Goodwill and other intangible assets | ' | ||||||||||||
Schedule of the balances of the Company's intangible assets | ' | ||||||||||||
As of January 31, 2014 | |||||||||||||
(In thousands) | Remaining | Amount | Accumulated | Net | |||||||||
Life | Amortization | ||||||||||||
Goodwill | Indefinite | $ | 4,338,589 | $ | — | $ | 4,338,589 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other intangible assets: | |||||||||||||
Leasehold interests | 1 to 9 years | $ | 64,644 | $ | 56,699 | $ | 7,945 | ||||||
Trade names and trademarks | Indefinite | 1,199,700 | — | 1,199,700 | |||||||||
| | | | | | | | | | | | | |
$ | 1,264,344 | $ | 56,699 | $ | 1,207,645 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
As of February 1, 2013 | |||||||||||||
(In thousands) | Remaining | Amount | Accumulated | Net | |||||||||
Life | Amortization | ||||||||||||
Goodwill | Indefinite | $ | 4,338,589 | $ | — | $ | 4,338,589 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other intangible assets: | |||||||||||||
Leasehold interests | 1 to 10 years | $ | 106,917 | $ | 87,074 | $ | 19,843 | ||||||
Trade names and trademarks | Indefinite | 1,199,700 | — | 1,199,700 | |||||||||
| | | | | | | | | | | | | |
$ | 1,306,617 | $ | 87,074 | $ | 1,219,543 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Earnings per share | ' | ||||||||||
Schedule of computation of earnings per share | ' | ||||||||||
Earnings per share is computed as follows (in thousands except per share data): | |||||||||||
2013 | |||||||||||
Net Income | Weighted | Per Share | |||||||||
Average | Amount | ||||||||||
Shares | |||||||||||
Basic earnings per share | $ | 1,025,116 | 322,886 | $ | 3.17 | ||||||
Effect of dilutive share-based awards | 968 | ||||||||||
| | | | | | | | | | | |
Diluted earnings per share | $ | 1,025,116 | 323,854 | $ | 3.17 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2012 | |||||||||||
Net Income | Weighted | Per Share | |||||||||
Average | Amount | ||||||||||
Shares | |||||||||||
Basic earnings per share | $ | 952,662 | 332,254 | $ | 2.87 | ||||||
Effect of dilutive share-based awards | 2,215 | ||||||||||
| | | | | | | | | | | |
Diluted earnings per share | $ | 952,662 | 334,469 | $ | 2.85 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2011 | |||||||||||
Net Income | Weighted | Per Share | |||||||||
Average | Amount | ||||||||||
Shares | |||||||||||
Basic earnings per share | $ | 766,685 | 341,234 | $ | 2.25 | ||||||
Effect of dilutive share-based awards | 3,883 | ||||||||||
| | | | | | | | | | | |
Diluted earnings per share | $ | 766,685 | 345,117 | $ | 2.22 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||
Income taxes | ' | |||||||||||||||||||
Schedule of provision (benefit) for income taxes | ' | |||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 530,728 | $ | 457,370 | $ | 385,277 | ||||||||||||||
Foreign | 1,324 | 1,209 | 1,449 | |||||||||||||||||
State | 101,174 | 78,025 | 56,272 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
633,226 | 536,604 | 442,998 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
Deferred: | ||||||||||||||||||||
Federal | (16,132 | ) | 9,734 | 8,313 | ||||||||||||||||
State | (13,880 | ) | (1,606 | ) | 7,293 | |||||||||||||||
| | | | | | | | | | | ||||||||||
(30,012 | ) | 8,128 | 15,606 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
$ | 603,214 | $ | 544,732 | $ | 458,604 | |||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of reconciliation between actual income taxes and amounts computed by applying federal statutory rate to income before income taxes | ' | |||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. federal statutory rate on earnings before income taxes | $ | 569,916 | 35 | % | $ | 524,088 | 35 | % | $ | 428,851 | 35 | % | ||||||||
State income taxes, net of federal income tax benefit | 56,822 | 3.5 | 52,713 | 3.5 | 42,774 | 3.5 | ||||||||||||||
Jobs credits, net of federal income taxes | (19,348 | ) | (1.2 | ) | (16,062 | ) | (1.1 | ) | (15,153 | ) | (1.2 | ) | ||||||||
Reduction in valuation allowances | (437 | ) | — | (3,050 | ) | (0.2 | ) | (2,202 | ) | (0.2 | ) | |||||||||
Reduction in income tax reserves | (6,391 | ) | (0.4 | ) | (13,676 | ) | (0.9 | ) | — | — | ||||||||||
Other, net | 2,652 | 0.1 | 719 | 0.1 | 4,334 | 0.3 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 603,214 | 37 | % | $ | 544,732 | 36.4 | % | $ | 458,604 | 37.4 | % | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of deferred tax assets and liabilities | ' | |||||||||||||||||||
(In thousands) | January 31, | February 1, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||
Deferred compensation expense | $ | 8,666 | $ | 9,276 | ||||||||||||||||
Accrued expenses and other | 9,067 | 5,727 | ||||||||||||||||||
Accrued rent | 17,375 | 15,450 | ||||||||||||||||||
Accrued insurance | 78,557 | 72,442 | ||||||||||||||||||
Accrued incentive compensation | 3,385 | 15,399 | ||||||||||||||||||
Interest rate hedges | 4,921 | 1,883 | ||||||||||||||||||
Tax benefit of income tax and interest reserves related to uncertain tax positions | 3,439 | 2,696 | ||||||||||||||||||
Deferred gain on sale-leaseback | 26,186 | — | ||||||||||||||||||
Other | 15,094 | 13,914 | ||||||||||||||||||
State tax net operating loss carry forwards, net of federal tax | 282 | 645 | ||||||||||||||||||
State tax credit carry forwards, net of federal tax | 8,282 | 8,925 | ||||||||||||||||||
| | | | | | | | |||||||||||||
175,254 | 146,357 | |||||||||||||||||||
Less valuation allowances | (1,393 | ) | (1,830 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total deferred tax assets | 173,861 | 144,527 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||
Property and equipment | (307,644 | ) | (294,204 | ) | ||||||||||||||||
Inventories | (64,481 | ) | (67,246 | ) | ||||||||||||||||
Trademarks | (433,130 | ) | (435,529 | ) | ||||||||||||||||
Amortizable assets | (2,343 | ) | (6,809 | ) | ||||||||||||||||
Bonus related tax method change | — | (6,534 | ) | |||||||||||||||||
Other | (2,084 | ) | (4,498 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total deferred tax liabilities | (809,682 | ) | (814,820 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net deferred tax liabilities | $ | (635,821 | ) | $ | (670,293 | ) | ||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of net deferred tax liabilities as recorded in the consolidated balance sheets | ' | |||||||||||||||||||
(In thousands) | January 31, | February 1, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Current deferred income tax liabilities, net | $ | (21,795 | ) | $ | (23,223 | ) | ||||||||||||||
Noncurrent deferred income tax liabilities, net | (614,026 | ) | (647,070 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net deferred tax liabilities | $ | (635,821 | ) | $ | (670,293 | ) | ||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Summary of amounts associated with uncertain tax positions included in income tax expense | ' | |||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Income tax expense (benefit) | $ | (3,915 | ) | $ | (16,119 | ) | $ | 97 | ||||||||||||
Income tax related interest expense (benefit) | 590 | 344 | 968 | |||||||||||||||||
Income tax related penalty expense (benefit) | 30 | (200 | ) | 63 | ||||||||||||||||
Schedule of reconciliation of uncertain income tax positions | ' | |||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Beginning balance | $ | 22,237 | $ | 42,018 | $ | 26,429 | ||||||||||||||
Increases—tax positions taken in the current year | 3,484 | 2,114 | 125 | |||||||||||||||||
Increases—tax positions taken in prior years | 3,000 | 1,144 | 15,840 | |||||||||||||||||
Decreases—tax positions taken in prior years | (608 | ) | (22,669 | ) | — | |||||||||||||||
Statute expirations | (7,622 | ) | (166 | ) | (376 | ) | ||||||||||||||
Settlements | (908 | ) | (204 | ) | — | |||||||||||||||
| | | | | | | | | | | ||||||||||
Ending balance | $ | 19,583 | $ | 22,237 | $ | 42,018 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Current_and_longterm_obligatio1
Current and long-term obligations (Tables) | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Current and long-term obligations | ' | |||||||
Schedule of current and long-term debt obligations | ' | |||||||
(In thousands) | January 31, | February 1, | ||||||
2014 | 2013 | |||||||
Senior unsecured credit facilities, maturity April 11, 2018: | ||||||||
Term Facility | $ | 1,000,000 | $ | — | ||||
Revolving Facility | — | — | ||||||
Senior secured term loan facility: | ||||||||
Maturity July 6, 2014 | — | 1,083,800 | ||||||
Maturity July 6, 2017 | — | 879,700 | ||||||
ABL Facility, maturity July 6, 2014 | — | 286,500 | ||||||
41/8% Senior Notes due July 15, 2017 | 500,000 | 500,000 | ||||||
17/8% Senior Notes due April 15, 2018 (net of discount of $383) | 399,617 | — | ||||||
31/4% Senior Notes due April 15, 2023 (net of discount of $2,199) | 897,801 | — | ||||||
Capital lease obligations | 6,841 | 7,733 | ||||||
Tax increment financing due February 1, 2035 | 14,495 | 14,495 | ||||||
| | | | | | | | |
2,818,754 | 2,772,228 | |||||||
Less: current portion | (75,966 | ) | (892 | ) | ||||
| | | | | | | | |
Long-term portion | $ | 2,742,788 | $ | 2,771,336 | ||||
| | | | | | | | |
| | | | | | | | |
Assets_and_liabilities_measure1
Assets and liabilities measured at fair value (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Assets and liabilities measured at fair value | ' | |||||||||||||
Schedule of assets and liabilities measured at fair value | ' | |||||||||||||
(In thousands) | Quoted Prices | Significant | Significant | Balance at | ||||||||||
in Active | Other | Unobservable | January 31, | |||||||||||
Markets | Observable | Inputs | 2014 | |||||||||||
for Identical | Inputs | (Level 3) | ||||||||||||
Assets and | (Level 2) | |||||||||||||
Liabilities | ||||||||||||||
(Level 1) | ||||||||||||||
Assets: | ||||||||||||||
Trading securities(a) | $ | 621 | $ | — | $ | — | $ | 621 | ||||||
Liabilities: | ||||||||||||||
Long-term obligations(b) | 2,772,739 | 21,336 | — | 2,794,075 | ||||||||||
Derivative financial instruments(c) | — | 4,109 | — | 4,109 | ||||||||||
Deferred compensation(d) | 21,696 | — | — | 21,696 | ||||||||||
(a) | ||||||||||||||
Reflected at fair value in the consolidated balance sheet as Prepaid expenses and other current assets. | ||||||||||||||
(b) | ||||||||||||||
Reflected at book value in the consolidated balance sheet as Current portion of long-term obligations of $75,966 and Long-term obligations of $2,742,788. | ||||||||||||||
(c) | ||||||||||||||
Reflected at fair value in the consolidated balance sheet as noncurrent Other liabilities. | ||||||||||||||
(d) | ||||||||||||||
Reflected at fair value in the consolidated balance sheet as Accrued expenses and other current liabilities of $4,092 and noncurrent Other liabilities of $17,604. | ||||||||||||||
Derivative_financial_instrumen1
Derivative financial instruments (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Derivative financial instruments | ' | ||||||||||
Schedule of fair value of derivative financial instruments as well as their classification on the consolidated balance sheets | ' | ||||||||||
(in thousands) | January 31, | February 1, | |||||||||
2014 | 2013 | ||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||
Interest rate swaps classified as noncurrent Other liabilities | $ | 4,109 | $ | 4,822 | |||||||
Schedule of the pre-tax effect of derivative financial instruments in the consolidated statements of comprehensive income and shareholders' equity | ' | ||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Derivatives in Cash Flow Hedging Relationships | |||||||||||
Loss related to effective portion of derivative recognized in OCI | $ | 16,036 | $ | 9,626 | $ | 3,836 | |||||
Loss related to effective portion of derivative reclassified from Accumulated OCI to Interest expense | $ | 4,604 | $ | 13,327 | $ | 28,633 | |||||
(Gain) loss related to ineffective portion of derivative recognized in Other (income) expense | $ | — | $ | (2,392 | ) | $ | 312 |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Commitments and contingencies | ' | ||||||||||
Schedule of future minimum payments for operating leases | ' | ||||||||||
(In thousands) | |||||||||||
2014 | $ | 712,563 | |||||||||
2015 | 665,193 | ||||||||||
2016 | 610,643 | ||||||||||
2017 | 554,413 | ||||||||||
2018 | 496,265 | ||||||||||
Thereafter | 2,699,755 | ||||||||||
| | | | | |||||||
Total minimum payments | $ | 5,738,832 | |||||||||
| | | | | |||||||
| | | | | |||||||
Schedule of rent expenses under operating leases | ' | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Minimum rentals(a) | $ | 674,849 | $ | 599,138 | $ | 525,486 | |||||
Contingent rentals | 12,058 | 15,150 | 16,856 | ||||||||
| | | | | | | | | | | |
$ | 686,907 | $ | 614,288 | $ | 542,342 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
Excludes amortization of leasehold interests of $11.9 million, $16.9 million and $21.0 million included in rent expense for the years ended January 31, 2014, February 1, 2013, and February 3, 2012, respectively. | |||||||||||
Sharebased_payments_Tables
Share-based payments (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Share-based payments | ' | ||||||||||||||||
Schedule of weighted average key assumptions used in determining the fair value of all options | ' | ||||||||||||||||
January 31, | February 1, | February 3, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Expected stock price volatility | 26.2 | % | 26.8 | % | 38.7 | % | |||||||||||
Weighted average risk-free interest rate | 1.2 | % | 1.5 | % | 2.3 | % | |||||||||||
Expected term of options (years) | 6.3 | 6.3 | 6.8 | ||||||||||||||
Share-based payments | ' | ||||||||||||||||
Summary of performance share unit award activity | ' | ||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Units | Intrinsic | |||||||||||||||
Issued | Value | ||||||||||||||||
Balance, February 1, 2013 | 162,688 | ||||||||||||||||
Granted | 72,846 | ||||||||||||||||
Converted to common stock | (54,973 | ) | |||||||||||||||
Canceled | (21,142 | ) | |||||||||||||||
| | | | | | | | ||||||||||
Balance, January 31, 2014 | 159,419 | $ | 8,978 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Summary of restricted stock unit award activity | ' | ||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Units | Intrinsic | |||||||||||||||
Issued | Value | ||||||||||||||||
Balance, February 1, 2013 | 288,927 | ||||||||||||||||
Granted | 509,440 | ||||||||||||||||
Converted to common stock | (98,063 | ) | |||||||||||||||
Canceled | (83,777 | ) | |||||||||||||||
| | | | | | | | ||||||||||
Balance, January 31, 2014 | 616,527 | $ | 34,723 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Schedule of share-based compensation expense | ' | ||||||||||||||||
(In thousands) | Stock | Performance | Restricted | Equity | Total | ||||||||||||
Options | Share Units | Stock Units | Appreciation | ||||||||||||||
Rights | |||||||||||||||||
Year ended January 31, 2014 | |||||||||||||||||
Pre-tax | $ | 7,634 | $ | 3,448 | $ | 9,879 | $ | — | $ | 20,961 | |||||||
Net of tax | $ | 4,649 | $ | 2,100 | $ | 6,016 | $ | — | $ | 12,765 | |||||||
Year ended February 1, 2013 | |||||||||||||||||
Pre-tax | $ | 14,078 | $ | 4,082 | $ | 3,504 | $ | — | $ | 21,664 | |||||||
Net of tax | $ | 8,578 | $ | 2,487 | $ | 2,135 | $ | — | $ | 13,200 | |||||||
Year ended February 3, 2012 | |||||||||||||||||
Pre-tax | $ | 15,121 | $ | — | $ | 129 | $ | 8,731 | $ | 23,981 | |||||||
Net of tax | $ | 9,208 | $ | — | $ | 79 | $ | 5,317 | $ | 14,604 | |||||||
Time Options | ' | ||||||||||||||||
Share-based payments | ' | ||||||||||||||||
Summary of options activity | ' | ||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Options | Average | Remaining | Intrinsic | |||||||||||||
Issued | Exercise Price | Contractual | Value | ||||||||||||||
Term in Years | |||||||||||||||||
Balance, February 1, 2013 | 1,350,642 | $ | 13.69 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (871,037 | ) | 11.11 | ||||||||||||||
Canceled | (15,042 | ) | 25.17 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | 464,563 | $ | 18.15 | 5.6 | $ | 17,730 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Exercisable at January 31, 2014 | 292,807 | $ | 15.43 | 5.3 | $ | 11,973 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Performance Options | ' | ||||||||||||||||
Share-based payments | ' | ||||||||||||||||
Summary of options activity | ' | ||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Options | Average | Remaining | Intrinsic | |||||||||||||
Issued | Exercise Price | Contractual | Value | ||||||||||||||
Term in Years | |||||||||||||||||
Balance, February 1, 2013 | 1,264,826 | $ | 13.96 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (868,441 | ) | 11.28 | ||||||||||||||
Canceled | (20,076 | ) | 22.69 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | 376,309 | $ | 19.68 | 5.8 | $ | 13,790 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Exercisable at January 31, 2014 | 336,716 | $ | 18.56 | 5.7 | $ | 12,714 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Other Options | ' | ||||||||||||||||
Share-based payments | ' | ||||||||||||||||
Summary of options activity | ' | ||||||||||||||||
(Intrinsic value amounts reflected in thousands) | Options | Average | Remaining | Intrinsic | |||||||||||||
Issued | Exercise Price | Contractual | Value | ||||||||||||||
Term in Years | |||||||||||||||||
Balance, February 1, 2013 | 1,211,771 | $ | 42.77 | ||||||||||||||
Granted | 875,269 | 48.8 | |||||||||||||||
Exercised | (53,813 | ) | 41.51 | ||||||||||||||
Canceled | (192,685 | ) | 46.69 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Balance, January 31, 2014 | 1,840,542 | $ | 45.26 | 8.5 | $ | 20,356 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Exercisable at January 31, 2014 | 369,424 | $ | 38.51 | 7.4 | $ | 6,580 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Segment_reporting_Tables
Segment reporting (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Segment reporting | ' | ||||||||||
Schedule of net sales grouped by classes of similar products | ' | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Classes of similar products: | |||||||||||
Consumables | $ | 13,161,825 | $ | 11,844,846 | $ | 10,833,735 | |||||
Seasonal | 2,259,516 | 2,172,399 | 2,051,098 | ||||||||
Home products | 1,115,648 | 1,061,573 | 1,005,219 | ||||||||
Apparel | 967,178 | 943,310 | 917,136 | ||||||||
| | | | | | | | | | | |
Net sales | $ | 17,504,167 | $ | 16,022,128 | $ | 14,807,188 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Quarterly_financial_data_unaud1
Quarterly financial data (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Quarterly financial data (unaudited) | ' | |||||||||||||
Schedule of selected unaudited quarterly financial data | ' | |||||||||||||
(In thousands) | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
2013:00:00 | ||||||||||||||
Net sales | $ | 4,233,733 | $ | 4,394,651 | $ | 4,381,838 | $ | 4,493,945 | ||||||
Gross profit | 1,295,148 | 1,377,290 | 1,328,493 | 1,434,811 | ||||||||||
Operating profit | 395,000 | 412,822 | 390,241 | 538,122 | ||||||||||
Net income | 220,083 | 245,475 | 237,385 | 322,173 | ||||||||||
Basic earnings per share | 0.67 | 0.76 | 0.74 | 1.01 | ||||||||||
Diluted earnings per share | 0.67 | 0.75 | 0.74 | 1.01 | ||||||||||
(In thousands) | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
2012:00:00 | ||||||||||||||
Net sales | $ | 3,901,205 | $ | 3,948,655 | $ | 3,964,647 | $ | 4,207,621 | ||||||
Gross profit | 1,228,256 | 1,263,223 | 1,226,123 | 1,367,799 | ||||||||||
Operating profit | 384,324 | 387,214 | 361,389 | 522,349 | ||||||||||
Net income | 213,415 | 214,140 | 207,685 | 317,422 | ||||||||||
Basic earnings per share | 0.64 | 0.64 | 0.62 | 0.97 | ||||||||||
Diluted earnings per share | 0.63 | 0.64 | 0.62 | 0.97 |
Basis_of_presentation_and_acco3
Basis of presentation and accounting policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
WK | WK | WK | |
item | |||
Basis of presentation and accounting policies | ' | ' | ' |
Fiscal year, number of weeks | 52 | 52 | 53 |
Number of stores through which entity sells general merchandise on a retail basis | 11,132 | ' | ' |
Number of states which entity covers | 40 | ' | ' |
Cash and cash equivalents | ' | ' | ' |
Maximum original maturity period at time of purchase of liquid investments classified as cash equivalents | '3 months | ' | ' |
Payments due from processors for electronic tender transactions classified as cash and cash equivalents | $44 | $45.20 | ' |
Minimum threshold of cash balances to be maintained as set by insurance regulators | 20 | ' | ' |
Merchandise inventories | ' | ' | ' |
Excess of current cost over LIFO cost | 90.9 | 101.9 | ' |
LIFO provision (benefit) | ($11) | $1.40 | $47.70 |
Basis_of_presentation_and_acco4
Basis of presentation and accounting policies (Details 2) (Purchases, Supplier concentration) | 12 Months Ended |
Jan. 31, 2014 | |
Largest supplier | ' |
Concentration of risk | ' |
Concentration risk, percentage | 8.00% |
Second largest supplier | ' |
Concentration of risk | ' |
Concentration risk, percentage | 7.00% |
Basis_of_presentation_and_acco5
Basis of presentation and accounting policies (Details 3) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | $3,452,916,000 | $3,226,898,000 | ' |
Less accumulated depreciation and amortization | 1,372,611,000 | 1,138,233,000 | ' |
Net property and equipment | 2,080,305,000 | 2,088,665,000 | ' |
Depreciation | ' | ' | ' |
Depreciation expense | 315,300,000 | 277,200,000 | 243,700,000 |
Capitalized interest | ' | ' | ' |
Interest costs capitalized | 1,200,000 | 600,000 | 1,500,000 |
Land | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | 163,448,000 | 176,861,000 | ' |
Land improvements | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | 48,566,000 | 80,834,000 | ' |
Depreciable Life | '20 years | ' | ' |
Buildings | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | 765,555,000 | 773,835,000 | ' |
Buildings | Minimum | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Depreciable Life | '39 years | ' | ' |
Buildings | Maximum | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Depreciable Life | '40 years | ' | ' |
Leasehold improvements | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | 326,122,000 | 279,351,000 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | 2,078,893,000 | 1,828,573,000 | ' |
Furniture, fixtures and equipment | Minimum | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Depreciable Life | '3 years | ' | ' |
Furniture, fixtures and equipment | Maximum | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Depreciable Life | '10 years | ' | ' |
Construction in progress | ' | ' | ' |
Property and equipment recorded at cost | ' | ' | ' |
Property and equipment, gross | $70,332,000 | $87,444,000 | ' |
Basis_of_presentation_and_acco6
Basis of presentation and accounting policies (Details 4) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
Impairment of long-lived assets | ' | ' | ' |
Minimum period for which stores are open to be reviewed for impairment | '3 years | ' | ' |
Impairment charges included in SG&A expense | $500,000 | $2,700,000 | $1,000,000 |
Goodwill and other intangible assets | ' | ' | ' |
Impairment of intangible assets | 0 | 0 | 0 |
Accrued expenses and other | ' | ' | ' |
Compensation and benefits | 47,909,000 | 76,981,000 | ' |
Insurance | 84,697,000 | 86,189,000 | ' |
Taxes (other than taxes on income) | 104,990,000 | 89,329,000 | ' |
Other | 130,982,000 | 104,939,000 | ' |
Accrued expenses and other | 368,578,000 | 357,438,000 | ' |
Operating leases and related liabilities | ' | ' | ' |
Deferred rent liability | 49,500,000 | 43,600,000 | ' |
Contingent rent liability | 6,000,000 | 7,700,000 | ' |
Noncurrent other liabilities | ' | ' | ' |
Compensation and benefits | 17,604,000 | 18,404,000 | ' |
Insurance | 145,162,000 | 137,451,000 | ' |
Income tax related reserves | 18,802,000 | 23,383,000 | ' |
Deferred gain on sale leaseback | 62,693,000 | ' | ' |
Other | 52,285,000 | 46,161,000 | ' |
Noncurrent other liabilities | $296,546,000 | $225,399,000 | ' |
Basis_of_presentation_and_acco7
Basis of presentation and accounting policies (Details 5) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
Revenue and gain recognition | ' | ' | ' |
Liability for outstanding gift cards | $4,300,000 | $3,600,000 | ' |
Breakage income related to the gift card program | 0 | 0 | 0 |
Advertising costs | ' | ' | ' |
Advertising costs | 70,500,000 | 61,700,000 | 50,400,000 |
Expenses related to vendor funding for cooperative advertising offset | $31,900,000 | $23,600,000 | $20,800,000 |
Goodwill_and_other_intangible_2
Goodwill and other intangible assets (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
Goodwill and other intangible assets | ' | ' | ' |
Goodwill | $4,338,589,000 | $4,338,589,000 | ' |
Other intangible assets: | ' | ' | ' |
Leasehold interests, gross amount | 64,644,000 | 106,917,000 | ' |
Leasehold interests, accumulated amortization | 56,699,000 | 87,074,000 | ' |
Leasehold interests, net | 7,945,000 | 19,843,000 | ' |
Trade names and trademarks | 1,199,700,000 | 1,199,700,000 | ' |
Total other intangible assets, gross | 1,264,344,000 | 1,306,617,000 | ' |
Total other intangible assets, accumulated amortization | 56,699,000 | 87,074,000 | ' |
Total other intangible assets, net | 1,207,645,000 | 1,219,543,000 | ' |
Goodwill and other intangible assets | ' | ' | ' |
Amortization expense | 11,900,000 | 16,900,000 | 21,000,000 |
Estimated aggregate amortization expense | ' | ' | ' |
2014 | 5,800,000 | ' | ' |
2015 | 900,000 | ' | ' |
2016 | 300,000 | ' | ' |
2017 | 200,000 | ' | ' |
2018 | $200,000 | ' | ' |
Minimum | ' | ' | ' |
Goodwill and other intangible assets | ' | ' | ' |
Leasehold interests, remaining life | '1 year | '1 year | ' |
Maximum | ' | ' | ' |
Goodwill and other intangible assets | ' | ' | ' |
Leasehold interests, remaining life | '9 years | '10 years | ' |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Nov. 02, 2012 | Aug. 03, 2012 | 4-May-12 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings | $322,173 | $237,385 | $245,475 | $220,083 | $317,422 | $207,685 | $214,140 | $213,415 | $1,025,116 | $952,662 | $766,685 |
Diluted Earnings | ' | ' | ' | ' | ' | ' | ' | ' | $1,025,116 | $952,662 | $766,685 |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares outstanding, basic | ' | ' | ' | ' | ' | ' | ' | ' | 322,886,000 | 332,254,000 | 341,234,000 |
Effect of dilutive share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 968,000 | 2,215,000 | 3,883,000 |
Shares outstanding, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 323,854,000 | 334,469,000 | 345,117,000 |
Per Share Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $1.01 | $0.74 | $0.76 | $0.67 | $0.97 | $0.62 | $0.64 | $0.64 | $3.17 | $2.87 | $2.25 |
Diluted earnings per share (in dollars per share) | $1.01 | $0.74 | $0.75 | $0.67 | $0.97 | $0.62 | $0.64 | $0.63 | $3.17 | $2.85 | $2.22 |
Shares of common stock outstanding excluded from computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 800,000 | 0 |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
Current: | ' | ' | ' |
Federal | $530,728,000 | $457,370,000 | $385,277,000 |
Foreign | 1,324,000 | 1,209,000 | 1,449,000 |
State | 101,174,000 | 78,025,000 | 56,272,000 |
Total current income taxes | 633,226,000 | 536,604,000 | 442,998,000 |
Deferred: | ' | ' | ' |
Federal | -16,132,000 | 9,734,000 | 8,313,000 |
State | -13,880,000 | -1,606,000 | 7,293,000 |
Total deferred income taxes | -30,012,000 | 8,128,000 | 15,606,000 |
Total provision (benefit) for income taxes | 603,214,000 | 544,732,000 | 458,604,000 |
Reconciliation between actual income taxes and amounts computed by applying federal statutory rate | ' | ' | ' |
U.S. federal statutory rate on earnings before income taxes | 569,916,000 | 524,088,000 | 428,851,000 |
State income taxes, net of federal income tax benefit | 56,822,000 | 52,713,000 | 42,774,000 |
Jobs credits, net of federal income taxes | -19,348,000 | -16,062,000 | -15,153,000 |
Reduction in valuation allowances | -437,000 | -3,050,000 | -2,202,000 |
Reduction in income tax reserves | -6,391,000 | -13,676,000 | ' |
Other, net | 2,652,000 | 719,000 | 4,334,000 |
Total provision (benefit) for income taxes | 603,214,000 | 544,732,000 | 458,604,000 |
Reconciliation between actual income taxes rate and federal statutory rate | ' | ' | ' |
U.S. federal statutory rate on earnings before income taxes (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit (as a percent) | 3.50% | 3.50% | 3.50% |
Jobs credits, net of federal income taxes (as a percent) | -1.20% | -1.10% | -1.20% |
Reduction in valuation allowance (as a percent) | ' | -0.20% | -0.20% |
Reduction in income tax reserves (as a percent) | -0.40% | -0.90% | ' |
Other, net (as a percent) | 0.10% | 0.10% | 0.30% |
Total provision (benefit) for income taxes (as a percent) | 37.00% | 36.40% | 37.40% |
Deferred tax assets: | ' | ' | ' |
Deferred compensation expense | 8,666,000 | 9,276,000 | ' |
Accrued expenses and other | 9,067,000 | 5,727,000 | ' |
Accrued rent | 17,375,000 | 15,450,000 | ' |
Accrued insurance | 78,557,000 | 72,442,000 | ' |
Accrued incentive compensation | 3,385,000 | 15,399,000 | ' |
Interest rate hedges | 4,921,000 | 1,883,000 | ' |
Tax benefit of income tax and interest reserves related to uncertain tax positions | 3,439,000 | 2,696,000 | ' |
Deferred gain on sale-leaseback | 26,186,000 | ' | ' |
Other | 15,094,000 | 13,914,000 | ' |
State tax net operating loss carryforwards, net of federal tax | 282,000 | 645,000 | ' |
State tax credit carryforwards, net of federal tax | 8,282,000 | 8,925,000 | ' |
Total deferred tax assets, gross | 175,254,000 | 146,357,000 | ' |
Less valuation allowances | -1,393,000 | -1,830,000 | ' |
Total deferred tax assets, net | 173,861,000 | 144,527,000 | ' |
Deferred tax liabilities: | ' | ' | ' |
Property and equipment | -307,644,000 | -294,204,000 | ' |
Inventories | -64,481,000 | -67,246,000 | ' |
Trademarks | -433,130,000 | -435,529,000 | ' |
Amortizable assets | -2,343,000 | -6,809,000 | ' |
Bonus related tax method change | ' | -6,534,000 | ' |
Other | -2,084,000 | -4,498,000 | ' |
Total deferred tax liabilities | -809,682,000 | -814,820,000 | ' |
Net deferred tax liabilities | -635,821,000 | -670,293,000 | ' |
Summarized net deferred tax liabilities recorded in the consolidated balance sheets | ' | ' | ' |
Current deferred income tax liabilities, net | -21,795,000 | -23,223,000 | ' |
Noncurrent deferred income tax liabilities, net | -614,026,000 | -647,070,000 | ' |
Net deferred tax liabilities | -635,821,000 | -670,293,000 | ' |
State net operating loss carryforwards which will expire in 2028 | 4,300,000 | ' | ' |
State tax credit carryforwards that will expire beginning in 2021 through 2024 | 12,700,000 | ' | ' |
Decrease in valuation allowance for state tax credit carryforwards and federal capital losses | 400,000 | 3,100,000 | 2,200,000 |
Amended Tax Return Liability Refund Adjustment | 5,100,000 | ' | ' |
Reserves for uncertain tax benefits | 19,583,000 | 22,237,000 | 42,018,000 |
Interest accrued related to uncertain tax benefits | 2,400,000 | 2,300,000 | ' |
Penalties accrued related to uncertain tax benefits | 400,000 | 400,000 | ' |
Aggregate reserve for uncertain tax positions including interest and penalties | 22,400,000 | 24,900,000 | ' |
Reserves for uncertain tax benefits included in current liabilities as Accrued expenses and other | 3,600,000 | 1,500,000 | ' |
Reserves for uncertain tax benefits included in noncurrent Other liabilities | 18,802,000 | 23,383,000 | ' |
Reserve for uncertain tax positions for which a reduction is reasonably possible in the next twelve months | 11,200,000 | ' | ' |
Reserve for uncertain tax positions that would impact effective tax rate if recognized | 19,600,000 | ' | ' |
Income tax amounts associated with uncertain tax positions | ' | ' | ' |
Income tax expense (benefit) | -3,915,000 | -16,119,000 | 97,000 |
Income tax related interest expense (benefit) | 590,000 | 344,000 | 968,000 |
Income tax related penalty expense (benefit) | 30,000 | -200,000 | 63,000 |
Reconciliation of the uncertain income tax positions | ' | ' | ' |
Beginning balance | 22,237,000 | 42,018,000 | 26,429,000 |
Increases - tax positions taken in the current year | 3,484,000 | 2,114,000 | 125,000 |
Increases - tax positions taken in prior years | 3,000,000 | 1,144,000 | 15,840,000 |
Decreases - tax positions taken in prior years | -608,000 | -22,669,000 | ' |
Statute expirations | -7,622,000 | -166,000 | -376,000 |
Settlements | -908,000 | -204,000 | ' |
Ending balance | $19,583,000 | $22,237,000 | $42,018,000 |
Current_and_longterm_obligatio2
Current and long-term obligations (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Apr. 11, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Apr. 11, 2013 | Jan. 31, 2014 | Apr. 11, 2013 | Jan. 31, 2014 | Apr. 11, 2013 | 3-May-13 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Feb. 01, 2013 | Jul. 12, 2012 | Jan. 31, 2014 | Apr. 11, 2013 | Jan. 31, 2014 | Apr. 11, 2013 | Apr. 11, 2013 | Jan. 31, 2014 | Feb. 01, 2013 | Jan. 31, 2014 | Feb. 01, 2013 | Jul. 15, 2012 | Aug. 03, 2012 | Feb. 01, 2013 | Feb. 03, 2012 | |
Senior unsecured credit facilities, maturity April 11, 2018 | Senior unsecured credit facilities, maturity April 11, 2018 | Senior unsecured credit facilities, maturity April 11, 2018 | Senior unsecured credit facilities, maturity April 11, 2018 | Senior unsecured credit facility, maturity April 11, 2018, Term Facility | Senior unsecured credit facility, maturity April 11, 2018, Term Facility | Senior unsecured credit facility, maturity April 11, 2018, Revolving Facility | Senior unsecured credit facility, maturity April 11, 2018, Revolving Facility | Senior unsecured credit facility, maturity April 11, 2018, Revolving Facility | Senior unsecured credit facility, maturity April 11, 2018, Revolving Facility | Previous Senior Secured Credit Facilities | Previous Senior Secured Credit Facilities | Senior secured term loan facility, maturity July 6, 2014 | Senior secured term loan facility, maturity July 6, 2017 | ABL Facility | Senior notes | 4.125% Senior Notes due July 15, 2017 | 4.125% Senior Notes due July 15, 2017 | 4.125% Senior Notes due July 15, 2017 | 1.875% Senior Notes due April 15, 2018 | 1.875% Senior Notes due April 15, 2018 | 3.25% Senior Notes due April 15, 2023 | 3.25% Senior Notes due April 15, 2023 | 2018 and 2023 Senior Notes | Capital lease obligations | Capital lease obligations | Tax increment financing due February 1, 2035 | Tax increment financing due February 1, 2035 | Senior subordinated notes due 2017 | Senior subordinated notes due 2017 | Senior subordinated notes due 2017 | Senior notes due 2015 | ||||
item | LIBOR loans | Base-rate loans | Letters of credit | Letters of credit | |||||||||||||||||||||||||||||||
Current and long-term obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current and long-term obligations | $2,818,754,000 | $2,772,228,000 | ' | ' | ' | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | $1,083,800,000 | $879,700,000 | $286,500,000 | ' | $500,000,000 | $500,000,000 | ' | $399,617,000 | ' | $897,801,000 | ' | ' | $6,841,000 | $7,733,000 | $14,495,000 | $14,495,000 | ' | ' | ' | ' |
Less: current portion | -75,966,000 | -892,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion | 2,742,788,000 | 2,771,336,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement term | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum financing under credit agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 850,000,000 | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum number of lenders in agreement required for debt increase | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on debt issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 383,000 | 500,000 | 2,199,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased facilities subject to agreement | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issue cost capitalized | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | 400,000,000 | ' | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.13% | 4.13% | 4.13% | 1.88% | 1.88% | 3.25% | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | 'LIBOR | 'Base Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spread on variable rate (as a percent) | ' | ' | ' | ' | ' | 1.28% | 0.28% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | ' | ' | 1.46% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of quarterly installments beginning August 1, 2014 | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | 49,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing availability under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 822,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price as a percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of notes repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,700,000 | ' | ' | 864,300,000 |
Loss on debt retirement, net | 18,871,000 | 30,620,000 | 60,303,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,900,000 | 18,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | 29,000,000 | 60,300,000 |
Scheduled debt maturities including capital lease obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 75,966,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 101,158,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 101,379,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 601,290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 1,025,892,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $915,651,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets_and_liabilities_measure2
Assets and liabilities measured at fair value (Details) (USD $) | Jan. 31, 2014 | Feb. 01, 2013 |
In Thousands, unless otherwise specified | ||
Reported amount | Current portion of long-term debt obligations | ' | ' |
Liabilities: | ' | ' |
Long-term obligations | $75,966 | ' |
Reported amount | Long-term obligations | ' | ' |
Liabilities: | ' | ' |
Long-term obligations | 2,742,788 | ' |
Reported amount | Accrued expenses and other current liabilities | ' | ' |
Liabilities: | ' | ' |
Deferred compensation | 4,092 | ' |
Reported amount | Noncurrent Other liabilities | ' | ' |
Liabilities: | ' | ' |
Deferred compensation | 17,604 | ' |
Noncurrent Other liabilities | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 4,109 | 4,822 |
Fair value measurements on recurring basis | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | ' | ' |
Assets: | ' | ' |
Trading securities | 621 | ' |
Liabilities: | ' | ' |
Long-term obligations | 2,772,739 | ' |
Deferred compensation | 21,696 | ' |
Fair value measurements on recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Liabilities: | ' | ' |
Long-term obligations | 21,336 | ' |
Derivative financial instruments | 4,109 | ' |
Fair value measurements on recurring basis | Balance at the end of the period | ' | ' |
Liabilities: | ' | ' |
Long-term obligations | 2,794,075 | ' |
Deferred compensation | 21,696 | ' |
Fair value measurements on recurring basis | Balance at the end of the period | Prepaid expenses and other current assets | ' | ' |
Assets: | ' | ' |
Trading securities | 621 | ' |
Fair value measurements on recurring basis | Balance at the end of the period | Noncurrent Other liabilities | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | $4,109 | ' |
Derivative_financial_instrumen2
Derivative financial instruments (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Apr. 11, 2013 | |
Interest rate swaps | Treasury locks | Treasury locks | ||||
Cash flow hedge | Cash flow hedge | Cash flow hedge | ||||
Cash flow hedges of interest rate risk | ' | ' | ' | ' | ' | ' |
Combined notional value | ' | ' | ' | $875,000,000 | ' | $700,000,000 |
Loss related to effective portion of derivative recognized in OCI | 16,036,000 | 9,626,000 | 3,836,000 | ' | 13,200,000 | ' |
(Gain) loss related to ineffective portion of derivative recognized in Other (income) expense | ' | -2,392,000 | 312,000 | ' | 0 | ' |
Estimated amount to be reclassified during the next 52 week period | $4,700,000 | ' | ' | ' | ' | ' |
Derivative_financial_instrumen3
Derivative financial instruments (Details 2) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
Pre-tax effect of derivative instruments on the condensed consolidated statements of comprehensive income | ' | ' | ' |
Loss related to effective portion of derivative recognized in OCI | $16,036,000 | $9,626,000 | $3,836,000 |
Loss related to effective portion of derivative reclassified from Accumulated OCI to Interest expense | 4,604,000 | 13,327,000 | 28,633,000 |
(Gain) loss related to ineffective portion of derivative recognized in Other (income) expense | ' | -2,392,000 | 312,000 |
Credit-risk-related contingent features | ' | ' | ' |
Fair value of interest rate swaps in a net liability position | 4,200,000 | ' | ' |
Collateral or assets required to settle interest rate swap obligations, estimated termination value | 4,200,000 | ' | ' |
Derivatives not designated as hedges | ' | ' | ' |
Derivative instruments held | ' | ' | ' |
Number of derivative instruments which are non-designated hedges | 0 | ' | ' |
Noncurrent Other liabilities | ' | ' | ' |
Derivatives designated as hedging instruments | ' | ' | ' |
Derivative financial instruments | $4,109,000 | $4,822,000 | ' |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Jan. 29, 1999 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Aug. 31, 2007 | |
item | |||||
Commitments and contingencies | ' | ' | ' | ' | ' |
Number of store locations sold and leased back | ' | 233 | ' | ' | ' |
Period for which asset was taken on lease under sale and leaseback transaction | '23 years | '15 years | ' | ' | ' |
Cash proceeds under sale and leaseback transaction | ' | $281,600,000 | ' | ' | ' |
Deferred gain under sale and leaseback transaction | ' | 67,200,000 | ' | ' | ' |
Face value of promissory note purchased | ' | ' | ' | ' | 34,300,000 |
Future minimum payments for operating leases | ' | ' | ' | ' | ' |
2014 | ' | 712,563,000 | ' | ' | ' |
2015 | ' | 665,193,000 | ' | ' | ' |
2016 | ' | 610,643,000 | ' | ' | ' |
2017 | ' | 554,413,000 | ' | ' | ' |
2018 | ' | 496,265,000 | ' | ' | ' |
Thereafter | ' | 2,699,755,000 | ' | ' | ' |
Total minimum payments | ' | 5,738,832,000 | ' | ' | ' |
Total minimum payments for capital leases | ' | 8,700,000 | ' | ' | ' |
Present value of net minimum capital lease payments | ' | 6,800,000 | ' | ' | ' |
Gross property and equipment recorded under capital lease | ' | 29,800,000 | 29,800,000 | ' | ' |
Accumulated depreciation on property and equipment recorded under capital lease | ' | 8,700,000 | 6,900,000 | ' | ' |
Operating lease rent expenses | ' | ' | ' | ' | ' |
Minimum rentals | ' | 674,849,000 | 599,138,000 | 525,486,000 | ' |
Contingent rentals | ' | 12,058,000 | 15,150,000 | 16,856,000 | ' |
Operating lease rent expenses | ' | 686,907,000 | 614,288,000 | 542,342,000 | ' |
Amortization expense | ' | $11,900,000 | $16,900,000 | $21,000,000 | ' |
Maximum | ' | ' | ' | ' | ' |
Commitments and contingencies | ' | ' | ' | ' | ' |
Typical period of primary lease term for operating lease, build-to-suit, maximum | ' | '15 years | ' | ' | ' |
Commitments_and_contingencies_2
Commitments and contingencies (Details 2) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Aug. 02, 2013 | Jan. 01, 2010 | Aug. 02, 2013 | Aug. 10, 2013 | Aug. 10, 2012 | 27-May-11 | Mar. 05, 2014 | Feb. 01, 2013 | Jan. 31, 2014 | Apr. 09, 2012 | Feb. 18, 2014 |
Cynthia Richter, et al. v. Dolgencorp, Inc ("Richter") | Cynthia Richter, et al. v. Dolgencorp, Inc ("Richter") | Cynthia Richter, et al. v. Dolgencorp, Inc ("Richter") | Winn-Dixie Stores, Inc., et al. v. Dolgencorp, LLC | Winn-Dixie Stores, Inc., et al. v. Dolgencorp, LLC | Winn-Dixie Stores, Inc., et al. v. Dolgencorp, LLC | Jonathan Marcum v. Dolgencorp. Inc. | Jonathan Marcum v. Dolgencorp. Inc. | Jonathan Marcum v. Dolgencorp. Inc. | Jonathan Marcum v. Dolgencorp. Inc. | ||
Pending litigation | Pending litigation | Pending litigation | Pending litigation | Pending litigation | Pending litigation | Pending litigation | Pending litigation | Pending litigation | Pending litigation | ||
person | item | item | Subsequent event | item | person | Subsequent event | |||||
item | |||||||||||
Legal proceedings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum number of current or former Dollar General store managers to whom notice was mailed | ' | 28,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of persons who opted into the lawsuit | ' | 3,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of opt-in plaintiffs dismissed | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Self insured retention under Employment Practices Liability Insurance (EPLI) | ' | ' | ' | ' | ' | ' | ' | ' | $2 | ' | ' |
Amount accrued for loss contingency | 8.5 | ' | 8.5 | ' | ' | ' | ' | 1.8 | ' | ' | ' |
Number of Plaintiffs whose conditional offer of employment was rescinded | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Approximate number of stores co-located with one of the plaintiffs' stores | ' | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' |
Expected amount sought by plaintiffs | ' | ' | ' | $8.50 | ' | $47 | ' | ' | ' | ' | $4.08 |
Number of stores for which the court did not dismiss the claims for injunctive relief | ' | ' | ' | ' | 4 | ' | 13 | ' | ' | ' | ' |
Number of formal settlement discussions | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Benefit_plans_Details
Benefit plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
Benefit plans | ' | ' | ' |
Matching contribution expense related to the Company's 401(k) plan | $13 | $11.90 | $10.90 |
Compensation expense for the Dollar General Corporation CDP/SERP Plan | $1.20 | $1.40 | $1.70 |
Sharebased_payments_Details
Share-based payments (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Feb. 03, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Apr. 06, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | |
Options | Options | Options | Equity Appreciation Rights | Equity Appreciation Rights | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Performance Share Units | Performance Share Units | Performance Share Units | Performance based restricted stock awards | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | 2007 Stock incentive plan | ||||
Chairman and chief executive officer | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Restricted Stock Units and Performance Stock Units | ||||||||||||||||
Time Options | Time Options | Time Options | Performance Options | Performance Options | Performance Options | Time Options and Performance Options | Other stock option | Other stock option | Other stock option | Other stock option | Other stock option | ||||||||||||||||||
Board of directors | Employee | ||||||||||||||||||||||||||||
Share-based payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock authorized for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,142,858 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,871,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '3 years | '4 years | '3 years |
Grant date fair value of awards issued (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $48.20 | $45.33 | $33.16 | $48.11 | $45.25 | ' | $45.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average for key assumptions used in determining the fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected stock price volatility (as a percent) | ' | ' | ' | 26.20% | 26.80% | 38.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average risk-free interest rate (as a percent) | ' | ' | ' | 1.20% | 1.50% | 2.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term of options | ' | ' | ' | '6 years 3 months 18 days | '6 years 3 months 18 days | '6 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual term of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Options Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,350,642 | ' | ' | 1,264,826 | ' | ' | ' | 1,211,771 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 875,269 | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -871,037 | ' | ' | -868,441 | ' | ' | ' | -53,813 | ' | ' | ' | ' | ' |
Canceled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,042 | ' | ' | -20,076 | ' | ' | ' | -192,685 | ' | ' | ' | ' | ' |
Balance, at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 464,563 | 1,350,642 | ' | 376,309 | 1,264,826 | ' | ' | 1,840,542 | 1,211,771 | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 292,807 | ' | ' | 336,716 | ' | ' | ' | 369,424 | ' | ' | ' | ' | ' |
Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.69 | ' | ' | $13.96 | ' | ' | ' | $42.77 | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48.80 | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.11 | ' | ' | $11.28 | ' | ' | ' | $41.51 | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.17 | ' | ' | $22.69 | ' | ' | ' | $46.69 | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18.15 | $13.69 | ' | $19.68 | $13.96 | ' | ' | $45.26 | $42.77 | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15.43 | ' | ' | $18.56 | ' | ' | ' | $38.51 | ' | ' | ' | ' | ' |
Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 7 months 6 days | ' | ' | '5 years 9 months 18 days | ' | ' | ' | '8 years 6 months | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 3 months 18 days | ' | ' | '5 years 8 months 12 days | ' | ' | ' | '7 years 4 months 24 days | ' | ' | ' | ' | ' |
Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17,730,000 | ' | ' | $13,790,000 | ' | ' | ' | $20,356,000 | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | 34,723,000 | ' | ' | 8,978,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,973,000 | ' | ' | 12,714,000 | ' | ' | ' | 6,580,000 | ' | ' | ' | ' | ' |
Weighted average grant date fair value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.47 | ' | ' | $13.47 | ' | $13.86 | $13.54 | $13.14 | ' | ' | ' |
Intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,400,000 | 117,300,000 | 41,400,000 | 39,100,000 | 106,400,000 | 41,800,000 | ' | 800,000 | 300,000 | 1,600,000 | ' | ' | ' |
Units Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards outstanding at the beginning of the period (in shares or rights) | ' | ' | ' | ' | ' | ' | ' | 0 | 288,927 | ' | ' | 162,688 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares or rights) | ' | ' | ' | ' | ' | ' | 818,847 | ' | 509,440 | ' | ' | 72,846 | ' | 0 | 326,037 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares or rights) | ' | ' | ' | ' | ' | ' | -768,561 | ' | -98,063 | ' | ' | -54,973 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares or rights) | ' | ' | ' | ' | ' | ' | -50,286 | ' | -83,777 | ' | ' | -21,142 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards outstanding at the end of the period (in shares or rights) | ' | ' | ' | ' | ' | ' | ' | 0 | 616,527 | 288,927 | ' | 159,419 | 162,688 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax | 20,961,000 | 21,664,000 | 23,981,000 | 7,634,000 | 14,078,000 | 15,121,000 | 8,731,000 | ' | 9,879,000 | 3,504,000 | 129,000 | 3,448,000 | 4,082,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net of tax | 12,765,000 | 13,200,000 | 14,604,000 | 4,649,000 | 8,578,000 | 9,208,000 | 5,317,000 | ' | 6,016,000 | 2,135,000 | 79,000 | 2,100,000 | 2,487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | $53,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected weighted average expense recognition period (in years) | '1 year 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 |
Related party transactions | ' | ' |
Number of seats on Board of Directors held by KKR and Goldman Sachs & Co. | 0 | 3 |
KKR | Credit facilities all | ' | ' |
Related party transactions | ' | ' |
Payment of financing costs | $0.70 | $1.60 |
Goldman, Sachs & Co. and affiliates | Credit facilities all | ' | ' |
Related party transactions | ' | ' |
Payment of financing costs | $2.20 | $1.70 |
Segment_reporting_Details
Segment reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Nov. 02, 2012 | Aug. 03, 2012 | 4-May-12 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
segment | segment | segment | |||||||||
Segment reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Net sales data for classes of similar products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $4,493,945 | $4,381,838 | $4,394,651 | $4,233,733 | $4,207,621 | $3,964,647 | $3,948,655 | $3,901,205 | $17,504,167 | $16,022,128 | $14,807,188 |
Consumables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales data for classes of similar products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 13,161,825 | 11,844,846 | 10,833,735 |
Seasonal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales data for classes of similar products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,259,516 | 2,172,399 | 2,051,098 |
Home products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales data for classes of similar products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,115,648 | 1,061,573 | 1,005,219 |
Apparel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales data for classes of similar products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $967,178 | $943,310 | $917,136 |
Common_stock_transactions_Deta
Common stock transactions (Details) (USD $) | 12 Months Ended | ||
Share data in Thousands, unless otherwise specified | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 |
Common stock transactions | ' | ' | ' |
Aggregate purchase price | $620,052,000 | $671,459,000 | $186,597,000 |
Common Stock | ' | ' | ' |
Common stock transactions | ' | ' | ' |
Shares acquired under share repurchase program | 11,037 | 14,394 | 4,960 |
Aggregate purchase price | 9,657,000 | 12,595,000 | 4,340,000 |
Common Stock | Pursuant to Authorized Repurchase Program | ' | ' | ' |
Common stock transactions | ' | ' | ' |
Common stock repurchase authorization | 2,000,000,000 | ' | ' |
Remaining authorization available under the common stock repurchase program | 1,020,000,000 | ' | ' |
Shares acquired under share repurchase program | 11,000 | 14,400 | 4,900 |
Aggregate purchase price | $620,100,000 | $671,400,000 | $185,000,000 |
Quarterly_financial_data_unaud2
Quarterly financial data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Nov. 02, 2012 | Aug. 03, 2012 | 4-May-12 | Jan. 31, 2014 | Feb. 01, 2013 | Feb. 03, 2012 | |
WK | WK | WK | WK | WK | WK | WK | WK | Q | Q | Q | |
Selected unaudited quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of weeks in a quarter | 13 | 13 | 13 | 13 | 13 | 13 | 13 | 13 | ' | ' | ' |
Number of quarters in a year | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | 4 |
Net sales | $4,493,945,000 | $4,381,838,000 | $4,394,651,000 | $4,233,733,000 | $4,207,621,000 | $3,964,647,000 | $3,948,655,000 | $3,901,205,000 | $17,504,167,000 | $16,022,128,000 | $14,807,188,000 |
Gross profit | 1,434,811,000 | 1,328,493,000 | 1,377,290,000 | 1,295,148,000 | 1,367,799,000 | 1,226,123,000 | 1,263,223,000 | 1,228,256,000 | 5,435,742,000 | 5,085,401,000 | 4,697,910,000 |
Operating profit | 538,122,000 | 390,241,000 | 412,822,000 | 395,000,000 | 522,349,000 | 361,389,000 | 387,214,000 | 384,324,000 | 1,736,185,000 | 1,655,276,000 | 1,490,804,000 |
Net income | 322,173,000 | 237,385,000 | 245,475,000 | 220,083,000 | 317,422,000 | 207,685,000 | 214,140,000 | 213,415,000 | 1,025,116,000 | 952,662,000 | 766,685,000 |
Basic earnings per share (in dollars per share) | $1.01 | $0.74 | $0.76 | $0.67 | $0.97 | $0.62 | $0.64 | $0.64 | $3.17 | $2.87 | $2.25 |
Diluted earnings per share (in dollars per share) | $1.01 | $0.74 | $0.75 | $0.67 | $0.97 | $0.62 | $0.64 | $0.63 | $3.17 | $2.85 | $2.22 |
Loss on debt retirement, net | ' | ' | ' | ' | ' | ' | ' | ' | 18,871,000 | 30,620,000 | 60,303,000 |
Loss on agreement to settle a legal matter | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on agreement to settle a legal matter, net of tax | ' | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of agreement to settle a legal matter on earnings per diluted share (in dollars per share) | ' | ' | $0.02 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Secured Credit Facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selected unaudited quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on debt retirement, net | ' | ' | ' | 18,900,000 | ' | ' | ' | ' | 18,900,000 | ' | ' |
Loss on debt retirement, net of tax | ' | ' | ' | 11,500,000 | ' | ' | ' | ' | ' | ' | ' |
Effect of pretax loss on debt retirement on earnings per diluted share (in dollars per share) | ' | ' | ' | $0.04 | ' | ' | ' | ' | ' | ' | ' |
Senior Subordinated Notes due July 15, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selected unaudited quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on debt retirement, net | ' | ' | ' | ' | ' | ' | 29,000,000 | ' | ' | 29,000,000 | ' |
Loss on debt retirement, net of tax | ' | ' | ' | ' | ' | ' | $17,700,000 | ' | ' | ' | ' |
Effect of pretax loss on debt retirement on earnings per diluted share (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' | ' |