Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 03, 2018 | Aug. 24, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | DOLLAR GENERAL CORP | |
Entity Central Index Key | 29,534 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 3, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-01 | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 265,534,401 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 03, 2018 | Feb. 02, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 265,288 | $ 267,441 |
Merchandise inventories | 3,896,432 | 3,609,025 |
Income taxes receivable | 68,353 | 108,265 |
Prepaid expenses and other current assets | 287,753 | 263,121 |
Total current assets | 4,517,826 | 4,247,852 |
Net property and equipment | 2,857,274 | 2,701,282 |
Goodwill | 4,338,589 | 4,338,589 |
Other intangible assets, net | 1,200,322 | 1,200,428 |
Other assets, net | 29,938 | 28,760 |
Total assets | 12,943,949 | 12,516,911 |
Current liabilities: | ||
Current portion of long-term obligations | 1,909 | 401,345 |
Accounts payable | 2,294,996 | 2,009,771 |
Accrued expenses and other | 611,389 | 549,658 |
Income taxes payable | 7,250 | 4,104 |
Total current liabilities | 2,915,544 | 2,964,878 |
Long-term obligations | 2,776,811 | 2,604,613 |
Deferred income taxes | 569,690 | 515,702 |
Other liabilities | 302,962 | 305,944 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock | ||
Common stock | 232,340 | 235,141 |
Additional paid-in capital | 3,222,233 | 3,196,462 |
Retained earnings | 2,928,064 | 2,698,352 |
Accumulated other comprehensive loss | (3,695) | (4,181) |
Total shareholders' equity | 6,378,942 | 6,125,774 |
Total liabilities and shareholders' equity | $ 12,943,949 | $ 12,516,911 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
Net sales | $ 6,443,309 | $ 5,828,305 | $ 12,557,772 | $ 11,437,930 |
Cost of goods sold | 4,468,436 | 4,037,783 | 8,720,650 | 7,948,425 |
Gross profit | 1,974,873 | 1,790,522 | 3,837,122 | 3,489,505 |
Selling, general and administrative expenses | 1,429,397 | 1,297,376 | 2,801,462 | 2,522,564 |
Operating profit | 545,476 | 493,146 | 1,035,660 | 966,941 |
Interest expense | 25,451 | 23,748 | 50,224 | 48,752 |
Other (income) expense | 1,019 | 1,019 | 3,502 | |
Income before income taxes | 519,006 | 469,398 | 984,417 | 914,687 |
Income tax expense | 111,769 | 174,615 | 212,328 | 340,415 |
Net income | $ 407,237 | $ 294,783 | $ 772,089 | $ 574,272 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.53 | $ 1.08 | $ 2.89 | $ 2.09 |
Diluted (in dollars per share) | $ 1.52 | $ 1.08 | $ 2.88 | $ 2.09 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 266,457 | 273,690 | 267,362 | 274,191 |
Diluted (in shares) | 267,226 | 274,132 | 268,180 | 274,674 |
Dividends per share (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.58 | $ 0.52 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 407,237 | $ 294,783 | $ 772,089 | $ 574,272 |
Unrealized net gain (loss) on hedged transactions, net of related income tax expense (benefit) of $86, $125, $172 and $253, respectively | 244 | 205 | 487 | 406 |
Comprehensive income | $ 407,481 | $ 294,988 | $ 772,576 | $ 574,678 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Unrealized net gain (loss) on hedged transactions, income tax expense (benefit) | $ 86 | $ 125 | $ 172 | $ 253 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 03, 2018 | Aug. 04, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 772,089 | $ 574,272 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 221,511 | 197,616 |
Deferred income taxes | 12,500 | 6,750 |
Loss on debt retirement | 1,019 | 3,502 |
Noncash share-based compensation | 21,779 | 16,839 |
Other noncash (gains) and losses | 12,120 | 11,359 |
Change in operating assets and liabilities: | ||
Merchandise inventories | (292,934) | (205,385) |
Prepaid expenses and other current assets | (25,727) | (43,240) |
Accounts payable | 270,862 | 292,074 |
Accrued expenses and other liabilities | 61,096 | 26,751 |
Income taxes | 43,058 | (92,940) |
Other | (84) | (1,368) |
Net cash provided by (used in) operating activities | 1,097,289 | 786,230 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (370,968) | (314,050) |
Proceeds from sales of property and equipment | 1,349 | 343 |
Net cash provided by (used in) investing activities | (369,619) | (313,707) |
Cash flows from financing activities: | ||
Issuance of long-term obligations | 499,495 | 599,556 |
Repayments of long-term obligations | (575,664) | (750,584) |
Net increase (decrease) in commercial paper outstanding | (149,400) | 25,000 |
Costs associated with issuance and retirement of debt | (4,384) | (9,524) |
Repurchases of common stock | (349,538) | (163,736) |
Payments of cash dividends | (154,708) | (142,339) |
Other equity and related transactions | 4,376 | (4,638) |
Net cash provided by (used in) financing activities | (729,823) | (446,265) |
Net increase (decrease) in cash and cash equivalents | (2,153) | 26,258 |
Cash and cash equivalents, beginning of period | 267,441 | 187,915 |
Cash and cash equivalents, end of period | 265,288 | 214,173 |
Supplemental schedule of noncash investing and financing activities: | ||
Purchases of property and equipment awaiting processing for payment, included in Accounts payable | $ 77,541 | $ 69,912 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Aug. 03, 2018 | |
Basis of presentation | |
Basis of presentation | 1. The accompanying unaudited condensed consolidated financial statements of Dollar General Corporation and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Such financial statements consequently do not include all of the disclosures normally required by U.S. GAAP for annual financial statements or those normally made in the Company’s Annual Report on Form 10-K, including the condensed consolidated balance sheet as of February 2, 2018 which was derived from the audited consolidated financial statements at that date. Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2018 for additional information. The Company’s fiscal year ends on the Friday closest to January 31. Unless the context requires otherwise, references to years contained herein pertain to the Company’s fiscal year. The Company’s 2018 fiscal year is scheduled to be a 52-week accounting period ending on February 1, 2019, and the 2017 fiscal year was a 52-week accounting period that ended on February 2, 2018. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the Company’s customary accounting practices. In management’s opinion, all adjustments (which are of a normal recurring nature) necessary for a fair presentation of the consolidated financial position as of August 3, 2018 and results of operations for the 13-week and 26-week accounting periods ended August 3, 2018 and August 4, 2017 have been made. The preparation of financial statements and related disclosures in conformity with U.S. GAAP 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Because the Company’s business is moderately seasonal, the results for interim periods are not necessarily indicative of the results to be expected for the entire year. The Company uses the last-in, first-out (“LIFO”) method of valuing inventory. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels, sales for the year and the expected rate of inflation or deflation for the year. The interim LIFO calculations are subject to adjustment in the final year-end LIFO inventory valuation. The Company recorded a LIFO provision (benefit) of $3.4 million and $(0.5) million in the respective 13-week periods, and $5.5 million and $0.3 million in the respective 26-week periods, ended August 3, 2018 and August 4, 2017. In addition, ongoing estimates of inventory shrinkage and initial markups and markdowns are included in the interim cost of goods sold calculation. In May 2014, the Financial Accounting Standards Board (“FASB”) issued comprehensive new accounting standards related to the recognition of revenue and in August 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017. The Company adopted this guidance using the modified retrospective approach effective February 3, 2018, and such adoption had no effect on the Company’s consolidated results of operations, financial position or cash flows. In February 2016, the FASB issued new guidance related to lease accounting, which when effective will require a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. As originally issued, this guidance required a modified retrospective approach for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. In July 2018, the FASB issued additional guidance which allows companies to record the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption as an alternative to the modified retrospective approach. The Company formed a project team to assess and implement the standard, which has completed its internal evaluation of existing contractual arrangements for embedded leases. The project team is also testing computations in the Company’s lease administration system, integrating interfaces between the lease administration system and the enterprise resource planning systems, identifying and implementing new processes and controls to ensure compliance, and is in the process of evaluating and documenting the Company’s accounting conclusions related to the new standard. As a result of the efforts of this project team, the Company has identified its store leases as the area in which it would most likely be affected by the new guidance. The Company’s assessment of the impact that adoption of this guidance will have on its consolidated financial statements is ongoing, and the Company anticipates a material impact because it is party to a significant number of lease contracts for its stores. In October 2016, the FASB issued amendments to existing guidance related to accounting for intra-entity transfers of assets other than inventory, which affects the Company’s historical accounting for intra-entity transfers of certain intangible assets. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. The amendments are applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance effective February 3, 2018 which resulted in an increase in deferred income tax liabilities and a decrease in retained earnings of $41.3 million. In January 2017, the FASB issued amendments to existing guidance related to the subsequent measurement of goodwill. These amendments modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Subsequent to adoption, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments should be applied on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. The Company currently does not anticipate a material effect on its consolidated results of operations, financial position or cash flows to result from the adoption of this guidance. |
Earnings per share
Earnings per share | 6 Months Ended |
Aug. 03, 2018 | |
Earnings per share | |
Earnings per share | 2. Earnings per share Earnings per share is computed as follows (in thousands, except per share data): 13 Weeks Ended August 3, 2018 13 Weeks Ended August 4, 2017 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 407,237 266,457 $ 1.53 $ 294,783 273,690 $ 1.08 Effect of dilutive share-based awards 769 442 Diluted earnings per share $ 407,237 267,226 $ 1.52 $ 294,783 274,132 $ 1.08 26 Weeks Ended August 3, 2018 26 Weeks Ended August 4, 2017 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 772,089 267,362 $ 2.89 $ 574,272 274,191 $ 2.09 Effect of dilutive share-based awards 818 483 Diluted earnings per share $ 772,089 268,180 $ 2.88 $ 574,272 274,674 $ 2.09 Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is determined based on the dilutive effect of share-based awards using the treasury stock method. Share-based awards 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 awards would be antidilutive, were 0.9 million and 2.6 million in the 2018 and 2017 13-week periods, and 0.9 million and 2.6 million in the 2018 and 2017 26-week periods, respectively. |
Income taxes
Income taxes | 6 Months Ended |
Aug. 03, 2018 | |
Income taxes | |
Income taxes | 3. 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. Income tax reserves are determined using the methodology established by accounting standards for income taxes which require companies to assess each income tax position taken using the following two-step approach. 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. The Company’s 2013 and earlier tax years are not open for further examination by the Internal Revenue Service (“IRS”). The IRS, at its discretion, may choose to examine the Company’s 2014 through 2016 fiscal year income tax filings. The Company has various state income tax examinations that are currently in progress. Generally, with few exceptions, the Company’s 2014 and later tax years remain open for examination by the various state taxing authorities. As of August 3, 2018, the total reserves for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $1.1 million, $0.8 million and $0.9 million, respectively, for a total of $2.8 million. This total amount is reflected in noncurrent Other liabilities in the condensed consolidated balance sheet. The Company’s reserve for uncertain tax positions will not be reduced in the coming twelve months as a result of expiring statutes of limitations. As of August 3, 2018, approximately $1.1 million of the reserve for uncertain tax positions would impact the Company’s effective income tax rate if the Company were to recognize the tax benefit for these positions. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted. The Company has not fully completed its accounting for the income tax effects of the TCJA. As discussed in SEC Staff Accounting Bulletin No. 118, the accounting for the TCJA should be completed within one year from enactment. During the 26-week period ended August 3, 2018, the Company made no adjustments to the provisional amounts recorded at February 2, 2018. Any adjustments to the provisional amounts recorded at February 2, 2018 will be reflected upon the completion of the Company’s accounting for the TCJA. The effective income tax rates for the 13-week and 26-week periods ended August 3, 2018 were 21.5% and 21.6%, respectively, compared to rates of 37.2% and 37.2%, respectively, for the 13-week and 26-week periods ended August 4, 2017. The tax rates for the 2018 13-week and 26-week periods were lower than the comparable 2017 13-week and 26-week periods primarily due to the federal tax law changes contained in the TCJA, including the change in the federal income tax rate to 21% in the 2018 periods compared to 35% in the 2017 periods. |
Current and long-term obligatio
Current and long-term obligations | 6 Months Ended |
Aug. 03, 2018 | |
Current and long-term obligations | |
Current and long-term obligations | 4. Current and long-term obligations consist of the following: August 3, February 2, (In thousands) 2018 2018 Senior unsecured credit facilities Term Facility $ — $ 175,000 Revolving Facility — — 1.875% Senior Notes due April 15, 2018 (net of discount of $16) — 399,984 3.250% Senior Notes due April 15, 2023 (net of discount of $1,204 and $1,322) 898,796 898,678 4.150% Senior Notes due November 1, 2025 (net of discount of $598 and $632) 499,402 499,368 3.875% Senior Notes due April 15, 2027 (net of discount of $395 and $413) 599,605 599,587 4.125% Senior Notes due May 1, 2028 (net of discount of $491) 499,509 — Unsecured commercial paper notes 280,800 430,200 Capital lease obligations 11,659 12,321 Tax increment financing due February 1, 2035 7,335 7,335 Debt issuance costs, net (18,386) (16,515) 2,778,720 3,005,958 Less: current portion (1,909) (401,345) Long-term portion $ 2,776,811 $ 2,604,613 At August 3, 2018, the Company maintained a $1.25 billion senior unsecured revolving credit facility (the “Revolving Facility”) that provides for the issuance of letters of credit up to $175.0 million and is scheduled to mature on February 22, 2022. Borrowings under the Revolving Facility bear interest at a rate equal to an applicable interest rate 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 interest rate margin for borrowings as of August 3, 2018 was 1.10% for LIBOR borrowings and 0.10% for base-rate borrowings. The Company is also required to pay a facility fee, payable on any used and unused commitment amounts of the Revolving Facility, and customary fees on letters of credit issued under the Revolving Facility. As of August 3, 2018, the commitment fee rate was 0.15%. The applicable interest rate margins for borrowings, the facility fees and the letter of credit fees under the Revolving Facility are subject to adjustment from time to time based on the Company’s long-term senior unsecured debt ratings. The Revolving Facility contains a number of customary affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to: incur additional liens; sell all or substantially all of the Company’s assets; consummate certain fundamental changes or change in the Company’s lines of business; and incur additional subsidiary indebtedness. The Revolving Facility also contains financial covenants which require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. As of August 3, 2018, the Company was in compliance with all such covenants. The Revolving Facility also contains customary events of default. On June 11, 2018, the Company voluntarily prepaid the entire $175.0 million outstanding balance of its senior unsecured term loan facility and recognized an associated loss of $1.0 million which is reflected in Other (gains) losses in the consolidated statement of income for the 13-week and 26-week periods ended August 3, 2018. As of August 3, 2018, the Company had no outstanding borrowings, outstanding letters of credit of $9.1 million, and borrowing availability of $1.24 billion under the Revolving Facility that, due to its intention to maintain borrowing availability related to the commercial paper program described below, could contribute incremental liquidity of $774.1 million. In addition, as of August 3, 2018, the Company had outstanding letters of credit of $38.9 million which were issued pursuant to separate agreements. As of August 3, 2018, the Company had a commercial paper program under which the Company may issue unsecured commercial paper notes (the “CP Notes”) from time to time in an aggregate amount not to exceed $1.0 billion outstanding at any time. The CP Notes may have maturities of up to 364 days from the date of issue and rank equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company intends to maintain available commitments under the Revolving Facility in an amount at least equal to the amount of CP Notes outstanding at any time. As of August 3, 2018, the Company’s condensed consolidated balance sheet reflected outstanding unsecured CP Notes of $280.8 million classified as long-term obligations due to its intent and ability to refinance these obligations as long-term debt. An additional $186.0 million of outstanding CP Notes were held by a wholly-owned subsidiary of the Company and are therefore not reflected on the condensed consolidated balance sheet. As of August 3, 2018, the outstanding CP Notes had a weighted average borrowing rate of 2.3%. On April 10, 2018, the Company issued $500.0 million aggregate principal amount of 4.125% senior notes due 2028 (the “2028 Senior Notes”), net of discount of $0.5 million, which are scheduled to mature on May 1, 2028. Interest on the 2028 Senior Notes is payable in cash on May 1 and November 1 of each year, with the first payment commencing on November 1, 2018. The Company incurred $4.4 million of debt issuance costs associated with the issuance of the 2028 Senior Notes. Effective April 15, 2018, the Company redeemed $400.0 million aggregate principal amount of outstanding 1.875% senior notes due 2018 (the “2018 Senior Notes”). There was no gain or loss associated with the redemption. The Company funded the redemption price for the 2018 Senior Notes with proceeds from the issuance of the 2028 Senior Notes. On April 11, 2017, the Company issued $600.0 million aggregate principal amount of 3.875% senior notes due 2027 (the “2027 Senior Notes”), net of discount of $0.4 million, which are scheduled to mature on April 15, 2027. Interest on the 2027 Senior Notes is payable in cash on April 15 and October 15 of each year. The Company incurred $5.2 million of debt issuance costs associated with the issuance of the 2027 Senior Notes. On April 27, 2017, the Company redeemed $500.0 million aggregate principal amount of outstanding 4.125% senior notes due 2017 (the “2017 Senior Notes”), resulting in a pretax loss of $3.4 million which is reflected in Other (income) expense in the condensed consolidated statement of income for the 13-week and 26-week periods ended August 4, 2017. The Company funded the redemption price for the 2017 Senior Notes with proceeds from the issuance of the 2027 Senior Notes. |
Assets and liabilities measured
Assets and liabilities measured at fair value | 6 Months Ended |
Aug. 03, 2018 | |
Assets and liabilities measured at fair value | |
Assets and liabilities measured at fair value | 5. 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). The Company does not have any fair value measurements categorized within Level 3 as of August 3, 2018. The following table presents the Company’s assets and liabilities disclosed at fair value as of August 3, 2018, aggregated by the level in the fair value hierarchy within which those measurements are classified. Quoted Prices in Active Markets Significant for Identical Other Significant Total Fair Assets and Observable Unobservable Value at Liabilities Inputs Inputs August 3, (In thousands) (Level 1) (Level 2) (Level 3) 2018 Liabilities: Long-term obligations (a) $ 2,467,011 $ 299,793 $ — $ 2,766,804 Deferred compensation (b) 25,875 — — 25,875 (a) Included in the condensed consolidated balance sheet at book value as Current portion of long-term obligations of $1,909 and Long-term obligations of $2,776,811. (b) Reflected at fair value in the condensed consolidated balance sheet as Accrued expenses and other current liabilities of $2,620 and noncurrent Other liabilities of $23,255. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Aug. 03, 2018 | |
Commitments and contingencies | |
Commitments and contingencies | 6. Legal proceedings From time to time, the Company is a party to various legal matters involving claims incidental to the conduct of its business, including actions by employees, consumers, suppliers, government agencies, or others. The Company has recorded accruals with respect to these matters, where appropriate, which are reflected in the Company’s consolidated financial statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. Except as described below, the Company believes, based upon information currently available, that such matters, both individually and in the aggregate, will be resolved without a material adverse effect on the Company’s consolidated financial statements as a whole. However, litigation and other legal matters involve 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 matters, 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. Wage and Hour Litigation The Company is defending the following wage and hour matters (collectively the “Wage/Hour Litigation”): · California Wage/Hour Litigation (“Key Carriers”) : Plaintiffs allege, on behalf of themselves and other similarly situated current and former “key carriers,” that the Company failed to comply with California law, in some or all of the following respects: failure to provide meal and rest periods, failure to provide accurate wage statements, and failure to provide appropriate termination pay. Plaintiffs seek to recover alleged unpaid wages, injunctive relief, consequential damages, pre-judgment interest, statutory penalties under the Private Attorney General Act (the “PAGA”) and attorneys’ fees and costs. · California Wage/Hour Litigation (“Non Key Carriers”) : Plaintiff alleges, on behalf of herself and other current and former “hourly non-key carrier” employees, that the Company failed to comply with California law in some or all of the following respects: failure to pay for all time worked, failure to pay timely wages, failure to provide meal and rest breaks, and failure to provide accurate wage statements and appropriate termination pay. Plaintiff seeks to recover penalties under the PAGA, attorneys’ fees and costs, and pre-judgment and post-judgment interest. · Pennsylvania Wage/Hour Litigation : Plaintiff, a former distribution center employee, alleges that he and other similarly situated current and former hourly distribution center employees were subjected to unlawful policies and practices and were denied regular and overtime wages in violation of federal and Pennsylvania law. Plaintiff seeks to proceed on a nationwide collective basis under federal law and a statewide class basis under Pennsylvania law and to recover alleged unpaid wages, liquidated damages, statutory damages, and attorneys’ fees and costs. · Tennessee Wage/Hour Litigation : Plaintiffs allege that they and other similarly situated current and former “key holders” were not paid for all hours worked in violation of federal, Illinois and Tennessee law. Plaintiffs seek to proceed on a nationwide collective basis under federal law and a statewide class basis under Tennessee and Illinois law and to recover alleged unpaid wages, statutory and common law damages, liquidated damages, pre- and post-judgment interest and attorneys’ fees and costs. The Company has reached a preliminary agreement with plaintiffs, which must be submitted to and approved by the Court, to resolve this matter for an amount not material to the Company’s financial statements as a whole. The Company is vigorously defending the Wage/Hour Litigation and believes that its policies and practices comply with federal and state laws and that these actions are not appropriate for class or similar treatment. At this time, it is not possible to predict whether these matters will be permitted to proceed as a class or other similar action, or the size of any putative class or classes. Likewise, except as to the resolution of the Tennessee Wage/Hour Litigation, at this time it is not possible to estimate the value of the claims asserted, and no assurances can be given that the Company will be successful in its defense of these matters on the merits or otherwise. For these reasons, except as to the resolution of the Tennessee Wage/Hour Litigation, 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 these actions could have a material adverse effect on the Company’s consolidated financial statements as a whole. Other Employment Litigation The Company is defending the following employment-related matters (collectively the “Employment Litigation”): · California Suitable Seating Litigation : Plaintiff alleges that the Company failed to provide her and other current and former California store employees with “suitable seats” in violation of California law. Plaintiff seeks to recover penalties under the PAGA, injunctive relief, and attorneys’ fees and costs. · EEOC Litigation : The United States Equal Employment Opportunity Commission (“EEOC”) alleges that the Company’s use of post offer, pre-employment physical assessments, as applied to candidates for the general warehouse position in the Bessemer, Alabama distribution center, violates the Americans with Disabilities Act (“ADA”) and the Genetic Information Nondiscrimination Act (“GINA”). The EEOC seeks injunctive and monetary relief for a class of applicants and employees under the ADA and GINA. The Company is vigorously defending the Employment Litigation and believes that its employment policies and practices comply with federal and state law and that these matters are not appropriate for class or similar treatment. At this time, it is not possible to predict whether these matters will be permitted to proceed as a class or in a similar fashion, or the size of any putative class or classes. Likewise, at this time, it is not possible to estimate the value of the claims asserted, and no assurances can be given that the Company will be successful in its defense of these matters on the merits or otherwise. 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 these matters could have a material adverse effect on the Company’s consolidated financial statements as a whole. Consumer/Product Litigation In December 2015 the Company was first notified of several lawsuits in which plaintiffs allege violation of state law, including state consumer protection laws, relating to the labeling, marketing and sale of certain Dollar General private-label motor oil. Each of these lawsuits, as well as additional, similar lawsuits filed after December 2015, was filed in, or removed to, various federal district courts of the United States (collectively “the Motor Oil Lawsuits”). On June 2, 2016, the United States Judicial Panel on Multidistrict Litigation (“JPML”) granted the Company’s motion to centralize the Motor Oil Lawsuits in a matter styled In re Dollar General Corp. Motor Oil Litigation , Case MDL No. 2709, before the United States District Court for the Western District of Missouri (“Motor Oil MDL”). Subsequently, plaintiffs in the Motor Oil MDL filed a consolidated amended complaint, in which they seek to certify two nationwide classes and multiple statewide sub-classes and for each putative class member some or all of the following relief: compensatory damages, injunctive relief, statutory damages, punitive damages and attorneys’ fees. The Company’s motion to dismiss the allegations raised in the consolidated amended complaint was granted in part and denied in part. To the extent additional consumer lawsuits alleging violation of laws relating to the labeling, marketing and sale of Dollar General private-label motor oil have been or will be filed, the Company expects that such lawsuits will be transferred to the Motor Oil MDL. In May 2017, the Company received a Notice of Proposed Action from the Office of the New Mexico Attorney General (the “New Mexico AG”) which alleges that the Company’s labeling, marketing and sale of certain Dollar General private-label motor oil violated New Mexico law (the “New Mexico Motor Oil Matter”). The State is represented in connection with this matter by counsel for plaintiffs in the Motor Oil MDL. On May 25, 2017, in response to the Notice of Proposed Action, the Company filed an action in New Mexico federal court seeking a declaratory judgment that the New Mexico AG is prohibited by, among other things, the United States Constitution, from pursuing the New Mexico Motor Oil Matter and an order enjoining the New Mexico AG from pursuing such an action. ( Dollar General Corporation v. Hector H. Balderas , D.N.M., Case No. 1:17-cv-00588). Thereafter, on June 20, 2017, the New Mexico AG filed an action in the First Judicial District Court, County of Santa Fe, New Mexico pertaining to the New Mexico Motor Oil Matter. ( Hector H. Balderas v. Dolgencorp, LLC , Case No. D-101-cv-2017-01562). The Company removed this matter to New Mexico federal court on July 26, 2017, and filed a motion to dismiss the action. The matter was transferred to the Motor Oil MDL and the New Mexico AG has moved to remand it to state court. ( Hector H. Balderas v. Dolgencorp, LLC , D.N.M., Case No. 1:17-cv-772). The Company’s and the New Mexico AG’s above-referenced motions are pending. On September 1, 2017, the Mississippi Attorney General (the “Mississippi AG”), who also is represented by the counsel for plaintiffs in the Motor Oil MDL, filed an action in the Chancery Court of the First Judicial District of Hinds County, Mississippi in which the Mississippi AG alleges that the Company’s labeling, marketing and sale of certain Dollar General private-label motor oil violated Mississippi law. ( Jim Hood v. Dollar General Corporation , Case No. G2017-1229 T/1) (the “Mississippi Motor Oil Matter”). The Company removed this matter to Mississippi federal court on October 5, 2017, and filed a motion to dismiss the action. The matter was transferred to the Motor Oil MDL and the Mississippi AG moved to remand it to state court. ( Jim Hood v. Dollar General Corporation , N.D. Miss., Case No. 3:17-cv-801-LG-LRA). The Company’s and the Mississippi AG’s above-referenced motions are pending. On January 30, 2018, the Company received a Civil Investigative Demand (“CID”) from the Office of the Louisiana Attorney General requesting information concerning the Company’s labeling, marketing and sale of certain Dollar General private-label motor oil (the “Louisiana Motor Oil Matter”). In response to the CID, the Company filed a petition for a protective order on February 20, 2018 in the 19 th Judicial District Court for the Parish of East Baton Rouge, Louisiana seeking to set aside the CID. ( In re Dollar General Corp. and Dolgencorp, LLC , Case No. 666499). The Company’s petition is pending. A mediation held in the Motor Oil MDL on February 26, 2018, was unsuccessful. On August 20, 2018, plaintiffs moved to certify two nationwide classes relating to their claims of alleged unjust enrichment and breach of implied warranties. In addition, plaintiffs moved to certify 17 statewide classes relating to their claims of alleged unfair trade practices/consumer fraud statutory claims. The Company is vigorously defending these matters and believes that the labeling, marketing and sale of its private-label motor oil comply with applicable federal and state requirements and are not misleading. The Company further believes that these matters are not appropriate for class or similar treatment. At this time, however, it is not possible to predict whether these matters will be permitted to proceed as a class or in a similar fashion, whether on a statewide or nationwide basis, or the size of any putative class or classes. Likewise, at this time, it is not possible to estimate the value of the claims asserted, and no assurances can be given that the Company will be successful in its defense of these matters on the merits or otherwise. For these reasons, the Company is unable to estimate the potential loss or range of loss in these matters; however, if the Company is not successful in its defense efforts, the resolution of the Motor Oil MDL, the New Mexico Motor Oil Matter, the Mississippi Motor Oil Matter or the Louisiana Motor Oil Matter could have a material adverse effect on the Company’s consolidated financial statements as a whole. |
Segment reporting
Segment reporting | 6 Months Ended |
Aug. 03, 2018 | |
Segment reporting | |
Segment reporting | 7. The Company manages its business on the basis of one reportable operating segment. As of August 3, 2018, all of the Company’s operations were located within the United States with the exception of certain subsidiaries in Hong Kong and China and a liaison office in India, which collectively are not material with regard to assets, results of operations or otherwise to the condensed consolidated financial statements. The following net sales data is presented in accordance with accounting standards related to disclosures about segments of an enterprise. 13 Weeks Ended 26 Weeks Ended August 3, August 4, August 3, August 4, (in thousands) 2018 2017 2018 2017 Classes of similar products: Consumables $ 4,988,063 $ 4,484,359 $ 9,760,451 $ 8,799,872 Seasonal 792,513 717,993 1,483,544 1,380,631 Home products 345,161 327,648 699,794 660,798 Apparel 317,572 298,305 613,983 596,629 Net sales $ 6,443,309 $ 5,828,305 $ 12,557,772 $ 11,437,930 |
Common stock transactions
Common stock transactions | 6 Months Ended |
Aug. 03, 2018 | |
Common stock transactions | |
Common stock transactions | 8. On August 29, 2012, the Company’s Board of Directors authorized a common stock repurchase program, which the Board has since increased on several occasions. Most recently, on March 14, 2018, the Company’s Board of Directors authorized a $1.0 billion increase to the existing common stock repurchase program. As of August 3, 2018, a cumulative total of $6.0 billion had been authorized under the program since its inception and approximately $1.0 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 the Company’s debt agreements and other factors. Repurchases under the program may be funded from available cash or borrowings, including under the Company’s Revolving Facility and issuance of CP Notes discussed in further detail in Note 4. Pursuant to its common stock repurchase program, during the 26-week periods ended August 3, 2018, and August 4, 2017, the Company repurchased in the open market approximately 3.7 million shares of its common stock at a total cost of $349.5 million and approximately 2.3 million shares of its common stock at a total cost of $163.7 million, respectively. The Company paid a quarterly cash dividend of $0.29 per share during each of the first and second quarters of 2018. On August 28, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.29 per share, which is payable on or before October 23, 2018 to shareholders of record on October 9, 2018. The amount and declaration of future cash dividends is subject to the sole discretion of the Company’s Board of Directors and will depend upon, among other things, the Company’s results of operations, cash requirements, financial condition, contractual restrictions and other factors that the Board may deem relevant in its sole discretion. |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Aug. 03, 2018 | |
Earnings per share | |
Schedule of computation of earnings per share | Earnings per share is computed as follows (in thousands, except per share data): 13 Weeks Ended August 3, 2018 13 Weeks Ended August 4, 2017 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 407,237 266,457 $ 1.53 $ 294,783 273,690 $ 1.08 Effect of dilutive share-based awards 769 442 Diluted earnings per share $ 407,237 267,226 $ 1.52 $ 294,783 274,132 $ 1.08 26 Weeks Ended August 3, 2018 26 Weeks Ended August 4, 2017 Weighted Weighted Net Average Per Share Net Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share $ 772,089 267,362 $ 2.89 $ 574,272 274,191 $ 2.09 Effect of dilutive share-based awards 818 483 Diluted earnings per share $ 772,089 268,180 $ 2.88 $ 574,272 274,674 $ 2.09 |
Current and long-term obligat16
Current and long-term obligations (Tables) | 6 Months Ended |
Aug. 03, 2018 | |
Current and long-term obligations | |
Schedule of current and long-term debt obligations | August 3, February 2, (In thousands) 2018 2018 Senior unsecured credit facilities Term Facility $ — $ 175,000 Revolving Facility — — 1.875% Senior Notes due April 15, 2018 (net of discount of $16) — 399,984 3.250% Senior Notes due April 15, 2023 (net of discount of $1,204 and $1,322) 898,796 898,678 4.150% Senior Notes due November 1, 2025 (net of discount of $598 and $632) 499,402 499,368 3.875% Senior Notes due April 15, 2027 (net of discount of $395 and $413) 599,605 599,587 4.125% Senior Notes due May 1, 2028 (net of discount of $491) 499,509 — Unsecured commercial paper notes 280,800 430,200 Capital lease obligations 11,659 12,321 Tax increment financing due February 1, 2035 7,335 7,335 Debt issuance costs, net (18,386) (16,515) 2,778,720 3,005,958 Less: current portion (1,909) (401,345) Long-term portion $ 2,776,811 $ 2,604,613 |
Assets and liabilities measur17
Assets and liabilities measured at fair value (Tables) | 6 Months Ended |
Aug. 03, 2018 | |
Assets and liabilities measured at fair value | |
Schedule of assets and liabilities measured at fair value | Quoted Prices in Active Markets Significant for Identical Other Significant Total Fair Assets and Observable Unobservable Value at Liabilities Inputs Inputs August 3, (In thousands) (Level 1) (Level 2) (Level 3) 2018 Liabilities: Long-term obligations (a) $ 2,467,011 $ 299,793 $ — $ 2,766,804 Deferred compensation (b) 25,875 — — 25,875 (a) Included in the condensed consolidated balance sheet at book value as Current portion of long-term obligations of $1,909 and Long-term obligations of $2,776,811. (b) Reflected at fair value in the condensed consolidated balance sheet as Accrued expenses and other current liabilities of $2,620 and noncurrent Other liabilities of $23,255. |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Aug. 03, 2018 | |
Segment reporting | |
Schedule of net sales grouped by classes of similar products | 13 Weeks Ended 26 Weeks Ended August 3, August 4, August 3, August 4, (in thousands) 2018 2017 2018 2017 Classes of similar products: Consumables $ 4,988,063 $ 4,484,359 $ 9,760,451 $ 8,799,872 Seasonal 792,513 717,993 1,483,544 1,380,631 Home products 345,161 327,648 699,794 660,798 Apparel 317,572 298,305 613,983 596,629 Net sales $ 6,443,309 $ 5,828,305 $ 12,557,772 $ 11,437,930 |
Basis of presentation (Details)
Basis of presentation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 03, 2018USD ($) | Aug. 04, 2017USD ($) | Aug. 03, 2018USD ($) | Aug. 04, 2017USD ($) | Feb. 01, 2019period | Feb. 02, 2018period | |
Basis of presentation | ||||||
Fiscal year, number of weeks | period | 52 | 52 | ||||
Merchandise inventories | ||||||
LIFO provision (benefit) | $ | $ 3.4 | $ (0.5) | $ 5.5 | $ 0.3 |
Basis of presentation - Account
Basis of presentation - Accounting policies (Details) - Accounting Standards Update 2016-16 [Member] $ in Millions | Feb. 03, 2018USD ($) |
Accounting standards | |
Increase in deferred income tax liabilities | $ 41.3 |
Decrease in retained earnings | $ 41.3 |
Earnings per share (Detail)
Earnings per share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | |
Net Income | ||||
Basic Earnings | $ 407,237 | $ 294,783 | $ 772,089 | $ 574,272 |
Diluted Earnings | $ 407,237 | $ 294,783 | $ 772,089 | $ 574,272 |
Shares | ||||
Shares outstanding, basic | 266,457 | 273,690 | 267,362 | 274,191 |
Effect of dilutive share-based awards | 769 | 442 | 818 | 483 |
Shares outstanding, diluted | 267,226 | 274,132 | 268,180 | 274,674 |
Per Share Amount | ||||
Basic earnings per share (in dollars per share) | $ 1.53 | $ 1.08 | $ 2.89 | $ 2.09 |
Diluted earnings per share (in dollars per share) | $ 1.52 | $ 1.08 | $ 2.88 | $ 2.09 |
Share-based awards outstanding excluded from computation of diluted earnings per share | 900 | 2,600 | 900 | 2,600 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | |
Income taxes | ||||
Reserves for uncertain tax benefits | $ 1.1 | $ 1.1 | ||
Interest accrued related to uncertain tax benefits | 0.8 | 0.8 | ||
Potential penalties accrued related to uncertain tax benefits | 0.9 | 0.9 | ||
Reserves for uncertain tax benefits included in noncurrent Other liabilities | 2.8 | 2.8 | ||
Reserve for uncertain tax positions that would impact effective tax rate if recognized | $ 1.1 | $ 1.1 | ||
Effective income tax rates (as a percent) | 21.50% | 37.20% | 21.60% | 37.20% |
U.S. federal statutory rate on earnings before income taxes (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% |
Current and long-term obligat23
Current and long-term obligations (Details) - USD ($) | Jun. 11, 2018 | Apr. 15, 2018 | Apr. 27, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 | Apr. 10, 2018 | Feb. 02, 2018 | Apr. 11, 2017 |
Current and long-term obligations | ||||||||||
Debt issuance costs, net | $ (18,386,000) | $ (18,386,000) | $ (16,515,000) | |||||||
Current and long-term obligations | 2,778,720,000 | 2,778,720,000 | 3,005,958,000 | |||||||
Less: current portion | (1,909,000) | (1,909,000) | (401,345,000) | |||||||
Long-term obligations | 2,776,811,000 | 2,776,811,000 | 2,604,613,000 | |||||||
Repayment of long-term debt | 575,664,000 | $ 750,584,000 | ||||||||
Loss on debt retirement | $ 1,019,000 | 3,502,000 | ||||||||
Senior unsecured credit facility | ||||||||||
Current and long-term obligations | ||||||||||
Commitment fee rate | 0.15% | |||||||||
Senior unsecured credit facility | LIBOR loans | ||||||||||
Current and long-term obligations | ||||||||||
Variable rate basis | LIBOR | |||||||||
Spread on variable rate (as a percent) | 1.10% | |||||||||
Senior unsecured credit facility | Base-rate loans | ||||||||||
Current and long-term obligations | ||||||||||
Variable rate basis | base rate | |||||||||
Spread on variable rate (as a percent) | 0.10% | |||||||||
Senior unsecured credit facility, Term Facility | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | 175,000,000 | |||||||||
Repayment of long-term debt | $ 175,000,000 | |||||||||
Loss on debt retirement | 1,000,000 | $ 1,000,000 | ||||||||
Senior unsecured credit facility, Revolving Facility | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | 0 | 0 | ||||||||
Maximum financing under credit agreements | 1,250,000,000 | 1,250,000,000 | ||||||||
Borrowing availability under credit facility | 1,240,000,000 | 1,240,000,000 | ||||||||
Borrowing availability except for amount reserved for commercial paper program | 774,100,000 | 774,100,000 | ||||||||
Senior unsecured credit facility, Revolving Facility | Letters of credit | ||||||||||
Current and long-term obligations | ||||||||||
Maximum financing under credit agreements | 175,000,000 | 175,000,000 | ||||||||
Letters of credit outstanding | 9,100,000 | 9,100,000 | ||||||||
4.125% Senior Notes due July 15, 2017 | ||||||||||
Current and long-term obligations | ||||||||||
Stated interest rate (as a percent) | 4.125% | |||||||||
Loss on debt retirement | $ 3,400,000 | $ 3,400,000 | ||||||||
Principal amount of notes redeemed | $ 500,000,000 | |||||||||
1.875% Senior Notes due April 15, 2018 | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | 399,984,000 | |||||||||
Discount on debt issuance | $ 16,000 | |||||||||
Stated interest rate (as a percent) | 1.875% | 1.875% | ||||||||
Loss on debt retirement | $ 0 | |||||||||
Principal amount of notes redeemed | $ 400,000,000 | |||||||||
3.25% Senior Notes due April 15, 2023 | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | 898,796,000 | 898,796,000 | $ 898,678,000 | |||||||
Discount on debt issuance | $ 1,204,000 | $ 1,204,000 | $ 1,322,000 | |||||||
Stated interest rate (as a percent) | 3.25% | 3.25% | 3.25% | |||||||
4.150% Senior Notes due Nov 1, 2025 | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | $ 499,402,000 | $ 499,402,000 | $ 499,368,000 | |||||||
Discount on debt issuance | $ 598,000 | $ 598,000 | $ 632,000 | |||||||
Stated interest rate (as a percent) | 4.15% | 4.15% | 4.15% | |||||||
3.875% Senior Notes due April 15. 2027 | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | $ 599,605,000 | $ 599,605,000 | $ 599,587,000 | |||||||
Discount on debt issuance | $ 395,000 | $ 395,000 | $ 413,000 | $ 400,000 | ||||||
Debt issue costs | 5,200,000 | |||||||||
Amount borrowed | $ 600,000,000 | |||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | 3.875% | 3.875% | ||||||
4.125% Senior Notes due May 1, 2028 | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | $ 499,509,000 | $ 499,509,000 | ||||||||
Discount on debt issuance | $ 491,000 | $ 491,000 | $ 500,000 | |||||||
Debt issue costs | 4,400,000 | |||||||||
Amount borrowed | $ 500,000,000 | |||||||||
Stated interest rate (as a percent) | 4.125% | 4.125% | 4.125% | |||||||
Unsecured commercial paper notes | ||||||||||
Current and long-term obligations | ||||||||||
Long-term obligations | $ 280,800,000 | $ 280,800,000 | $ 430,200,000 | |||||||
Maximum maturity | 364 days | |||||||||
Maximum aggregate borrowing amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||
Weighted average interest rate (as a percent) | 2.30% | 2.30% | ||||||||
Unsecured commercial paper notes | Wholly-owned subsidiary | ||||||||||
Current and long-term obligations | ||||||||||
Long-term obligations | $ 186,000,000 | $ 186,000,000 | ||||||||
Capital lease obligations | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | 11,659,000 | 11,659,000 | 12,321,000 | |||||||
Tax increment financing due February 1, 2035 | ||||||||||
Current and long-term obligations | ||||||||||
Current and long-term obligations | 7,335,000 | 7,335,000 | $ 7,335,000 | |||||||
Letter Of Credit Outside Of Revolving Facility | ||||||||||
Current and long-term obligations | ||||||||||
Letters of credit outstanding | $ 38,900,000 | $ 38,900,000 |
Assets and liabilities measur24
Assets and liabilities measured at fair value (Detail) $ in Thousands | Aug. 03, 2018USD ($) |
Reported amount | Current portion of long-term debt obligations | |
Liabilities: | |
Long-term obligations | $ 1,909 |
Reported amount | Long-term obligations | |
Liabilities: | |
Long-term obligations | 2,776,811 |
Reported amount | Accrued expenses and other current liabilities | |
Liabilities: | |
Deferred compensation | 2,620 |
Reported amount | Noncurrent Other liabilities | |
Liabilities: | |
Deferred compensation | 23,255 |
Fair value measurements on recurring basis | Balance at the end of the period | |
Liabilities: | |
Long-term obligations | 2,766,804 |
Deferred compensation | 25,875 |
Fair value measurements on recurring basis | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | |
Liabilities: | |
Long-term obligations | 2,467,011 |
Deferred compensation | 25,875 |
Fair value measurements on recurring basis | Significant Other Observable Inputs (Level 2) | |
Liabilities: | |
Long-term obligations | $ 299,793 |
Commitments and contingencies -
Commitments and contingencies - Legal proceedings (Detail) - Motor Oil MDL - Pending litigation - item | Aug. 20, 2018 | Aug. 03, 2018 |
Legal proceedings | ||
Number of nationwide classes | 2 | 2 |
Number of statewide sub-classes | 17 |
Segment reporting (Details)
Segment reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2018USD ($)segment | Aug. 04, 2017USD ($)segment | Aug. 03, 2018USD ($)segment | Aug. 04, 2017USD ($)segment | |
Net sales data for classes of similar products | ||||
Net sales | $ 6,443,309 | $ 5,828,305 | $ 12,557,772 | $ 11,437,930 |
Number of reportable segments | ||||
Number of reportable operating segments | segment | 1 | 1 | 1 | 1 |
Consumables | ||||
Net sales data for classes of similar products | ||||
Net sales | $ 4,988,063 | $ 4,484,359 | $ 9,760,451 | $ 8,799,872 |
Seasonal | ||||
Net sales data for classes of similar products | ||||
Net sales | 792,513 | 717,993 | 1,483,544 | 1,380,631 |
Home products | ||||
Net sales data for classes of similar products | ||||
Net sales | 345,161 | 327,648 | 699,794 | 660,798 |
Apparel | ||||
Net sales data for classes of similar products | ||||
Net sales | $ 317,572 | $ 298,305 | $ 613,983 | $ 596,629 |
Common stock transactions (Deta
Common stock transactions (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Aug. 28, 2018 | Mar. 14, 2018 | Aug. 03, 2018 | May 04, 2018 | Aug. 04, 2017 | Aug. 03, 2018 | Aug. 04, 2017 |
Common stock transactions | |||||||
Cash dividend paid (in dollars per share) | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.58 | $ 0.52 | ||
Subsequent event | |||||||
Common stock transactions | |||||||
Cash dividend declared (in dollars per share) | $ 0.29 | ||||||
Common Stock | Pursuant to Authorized Repurchase Program | |||||||
Common stock transactions | |||||||
Common stock repurchase program, increase in the authorized amount | $ 1,000 | ||||||
Common stock repurchase authorization | $ 6,000 | $ 6,000 | |||||
Remaining authorization available under the common stock repurchase program | $ 1,000 | $ 1,000 | |||||
Shares acquired under share repurchase program | 3.7 | 2.3 | |||||
Aggregate purchase price | $ 349.5 | $ 163.7 |