Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 28, 2023 | Mar. 03, 2023 | Jul. 29, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 28, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-25464 | ||
Entity Registrant Name | DOLLAR TREE, INC. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 26-2018846 | ||
Entity Address, Address Line One | 500 Volvo Parkway | ||
Entity Address, City or Town | Chesapeake, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23320 | ||
City Area Code | 757 | ||
Local Phone Number | 321-5000 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | DLTR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 35,108,117,366 | ||
Entity Common Stock, Shares Outstanding | 221,227,564 | ||
Documents Incorporated by Reference | The information called for in Items 10, 11, 12, 13 and 14 of Part III, to the extent not set forth herein, is incorporated by reference to the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 28, 2023. | ||
Entity Central Index Key | 0000935703 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-28 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 28, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Norfolk, Virginia |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 28,318.2 | $ 26,309.8 | $ 25,508.4 |
Other revenue | 13.5 | 11.4 | 0.9 |
Total revenue | 28,331.7 | 26,321.2 | 25,509.3 |
Cost of sales | 19,396.3 | 18,583.9 | 17,721 |
Selling, general and administrative expenses | 6,699.1 | 5,925.9 | 5,900.4 |
Operating income | 2,236.3 | 1,811.4 | 1,887.9 |
Interest expense, net | 125.3 | 178.9 | 147.3 |
Other expense, net | 0.4 | 0.3 | 0.8 |
Income before income taxes | 2,110.6 | 1,632.2 | 1,739.8 |
Provision for income taxes | 495.2 | 304.3 | 397.9 |
Net income | $ 1,615.4 | $ 1,327.9 | $ 1,341.9 |
Net income per share: | |||
Basic net income per share (usd per share) | $ 7.24 | $ 5.83 | $ 5.68 |
Diluted net income per share (usd per share) | $ 7.21 | $ 5.80 | $ 5.65 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,615.4 | $ 1,327.9 | $ 1,341.9 |
Foreign currency translation adjustments | (6) | 0 | 4.6 |
Total comprehensive income | $ 1,609.4 | $ 1,327.9 | $ 1,346.5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 642.8 | $ 984.9 |
Merchandise inventories | 5,449.3 | 4,367.3 |
Other current assets | 275 | 257 |
Total current assets | 6,367.1 | 5,609.2 |
Property, plant and equipment, net of accumulated depreciation of $6,025.4 and $5,363.8, respectively | 4,972.2 | 4,477.3 |
Restricted cash | 68.5 | 53.4 |
Operating lease right-of-use assets | 6,458 | 6,425.3 |
Goodwill | 1,983.1 | 1,984.4 |
Trade name intangible asset | 3,100 | 3,100 |
Deferred tax asset | 15 | 20.3 |
Other assets | 58.2 | 51.9 |
Total assets | 23,022.1 | 21,721.8 |
Current liabilities: | ||
Current portion of operating lease liabilities | 1,449.6 | 1,407.8 |
Accounts payable | 1,899.8 | 1,884.2 |
Income taxes payable | 58.1 | 82.6 |
Other current liabilities | 817.7 | 802 |
Total current liabilities | 4,225.2 | 4,176.6 |
Long-term debt, net | 3,421.6 | 3,417 |
Operating lease liabilities, long-term | 5,255.3 | 5,145.5 |
Deferred income taxes, net | 1,105.7 | 987.2 |
Income taxes payable, long-term | 17.4 | 20.9 |
Other liabilities | 245.4 | 256.1 |
Total liabilities | 14,270.6 | 14,003.3 |
Commitments and contingencies (Note 4) | ||
Shareholders’ equity: | ||
Common stock, par value $0.01; 600,000,000 shares authorized, 221,222,984 and 225,100,198 shares issued and outstanding at January 28, 2023 and January 29, 2022, respectively | 2.2 | 2.2 |
Additional paid-in capital | 667.5 | 1,243.9 |
Accumulated other comprehensive loss | (41.2) | (35.2) |
Retained earnings | 8,123 | 6,507.6 |
Total shareholders’ equity | 8,751.5 | 7,718.5 |
Total liabilities and shareholders’ equity | $ 23,022.1 | $ 21,721.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, property, plant and equipment | $ 6,025.4 | $ 5,363.8 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (usd per share) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 221,222,984 | 225,100,198 |
Common stock, shares outstanding (in shares) | 221,222,984 | 225,100,198 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance at Beginning of Year (in shares) at Feb. 01, 2020 | 236,700,000 | ||||
Balance at Beginning of Year at Feb. 01, 2020 | $ 6,254.8 | $ 2.4 | $ 2,454.4 | $ (39.8) | $ 3,837.8 |
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 1,341.9 | 1,341.9 | |||
Total other comprehensive income (loss) | 4.6 | 4.6 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 200,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 10 | 10 | |||
Exercise of stock options (in shares) | 100,000 | ||||
Exercise of stock options | 7 | 7 | |||
Stock-based compensation, net (in shares) | 400,000 | ||||
Stock-based compensation, net | 67 | 67 | |||
Repurchase of stock (in shares) | (4,000,000) | ||||
Repurchase of stock | (400) | $ (0.1) | (399.9) | ||
Balance at End of Year (in shares) at Jan. 30, 2021 | 233,400,000 | ||||
Balance at End of Year at Jan. 30, 2021 | 7,285.3 | $ 2.3 | 2,138.5 | (35.2) | 5,179.7 |
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 1,327.9 | 1,327.9 | |||
Total other comprehensive income (loss) | 0 | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 10.4 | 10.4 | |||
Exercise of stock options (in shares) | 100,000 | ||||
Exercise of stock options | 7.4 | 7.4 | |||
Stock-based compensation, net (in shares) | 700,000 | ||||
Stock-based compensation, net | 37.5 | 37.5 | |||
Repurchase of stock (in shares) | (9,200,000) | ||||
Repurchase of stock | (950) | $ (0.1) | (949.9) | ||
Balance at End of Year (in shares) at Jan. 29, 2022 | 225,100,000 | ||||
Balance at End of Year at Jan. 29, 2022 | 7,718.5 | $ 2.2 | 1,243.9 | (35.2) | 6,507.6 |
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 1,615.4 | 1,615.4 | |||
Total other comprehensive income (loss) | (6) | (6) | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | $ 9.3 | 9.3 | |||
Exercise of stock options (in shares) | 583 | ||||
Stock-based compensation, net (in shares) | 600,000 | ||||
Stock-based compensation, net | $ 61.8 | 61.8 | |||
Repurchase of stock (in shares) | (4,600,000) | ||||
Repurchase of stock | (647.5) | $ 0 | (647.5) | ||
Balance at End of Year (in shares) at Jan. 28, 2023 | 221,200,000 | ||||
Balance at End of Year at Jan. 28, 2023 | $ 8,751.5 | $ 2.2 | $ 667.5 | $ (41.2) | $ 8,123 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 1,615.4 | $ 1,327.9 | $ 1,341.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 767.9 | 716 | 686.6 |
Provision for deferred income taxes | 123 | (23.2) | 30.7 |
Stock-based compensation expense | 110.4 | 79.9 | 83.9 |
Amortization of debt discount and debt-issuance costs | 4.6 | 8.9 | 4 |
Other non-cash adjustments to net income | 59.1 | 11.2 | 19 |
Loss on debt extinguishment | 0 | 43.8 | 0 |
Changes in operating assets and liabilities: | |||
Merchandise inventories | (1,085.4) | (940.4) | 97.1 |
Other current assets | (17.9) | (49.9) | 1.7 |
Other assets | (6.8) | (2.6) | (7) |
Accounts payable | 16.8 | 403.8 | 142.6 |
Income taxes payable | (24.5) | (3.7) | 23.6 |
Other current liabilities | (2.2) | (36.5) | 203.4 |
Other liabilities | (14.4) | (98.2) | 88.2 |
Operating lease right-of-use assets and liabilities, net | 68.8 | (5.5) | 0.6 |
Net cash provided by operating activities | 1,614.8 | 1,431.5 | 2,716.3 |
Cash flows from investing activities: | |||
Capital expenditures | (1,248.8) | (1,021.2) | (898.8) |
Proceeds from governmental grant | 0 | 2.9 | 0 |
Proceeds from (payments for) fixed asset disposition | (5) | (1.6) | 9.1 |
Net cash used in investing activities | (1,253.8) | (1,019.9) | (889.7) |
Cash flows from financing activities: | |||
Proceeds from long-term debt, net of discount | 0 | 1,197.4 | 0 |
Principal payments for long-term debt | 0 | (1,000) | (550) |
Debt-issuance and debt extinguishment costs | 0 | (59.3) | 0 |
Proceeds from revolving credit facility | 555 | 0 | 750 |
Repayments of revolving credit facility | (555) | 0 | (750) |
Proceeds from stock issued pursuant to stock-based compensation plans | 9.3 | 17.8 | 17 |
Cash paid for taxes on exercises/vesting of stock-based compensation | (48.6) | (42.4) | (16.9) |
Payments for repurchase of stock | (647.5) | (950) | (400) |
Net cash used in financing activities | (686.8) | (836.5) | (949.9) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1.2) | (0.4) | 0.9 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (327) | (425.3) | 877.6 |
Cash, cash equivalents and restricted cash at beginning of year | 1,038.3 | 1,463.6 | 586 |
Cash, cash equivalents and restricted cash at end of year | 711.3 | 1,038.3 | 1,463.6 |
Cash paid for: | |||
Interest, net of amounts capitalized | 132.2 | 176.1 | 152.9 |
Income taxes | 401.3 | 363.4 | 357.7 |
Non-cash transactions: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,538.3 | 1,495.3 | 1,440.2 |
Accrued capital expenditures | $ 86.6 | $ 68.3 | $ 44.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Unless otherwise stated, references to “we,” “us,” and “our” in this annual report on Form 10-K refer to Dollar Tree, Inc. and its direct and indirect subsidiaries on a consolidated basis. We are a leading operator of discount retail stores in the United States and Canada. Below are those accounting policies that we consider to be significant. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segment Information At January 28, 2023, we operate more than 16,300 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Dollar Tree segment is the leading operator of discount variety stores offering merchandise predominantly at the fixed price point of $1.25. The Dollar Tree segment includes our operations under the “Dollar Tree” and “Dollar Tree Canada” brands, 15 distribution centers in the United States and two distribution centers in Canada. The Family Dollar segment operates a chain of general merchandise retail discount stores providing consumers with a selection of competitively-priced merchandise in convenient neighborhood stores. The Family Dollar segment consists of our operations under the “Family Dollar” brand and ten distribution centers. Refer to Note 11 for additional information regarding our operating segments. Foreign Currency The functional currencies of certain of our international subsidiaries are the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions, which are included in “Other expense, net” have not been significant. Fiscal Year Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to January 31. References to “2022” or “fiscal 2022,” “2021” or “fiscal 2021,” and “2020” or “fiscal 2020” relate to the 52-week fiscal years ended January 28, 2023, January 29, 2022, and January 30, 2021, respectively. “2023” or “fiscal 2023” refers to the 53-week fiscal year ending February 3, 2024. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents at January 28, 2023 and January 29, 2022 includes $317.2 million and $680.6 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. We consider all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions process within three business days, and therefore are classified as cash and cash equivalents. Merchandise Inventories Merchandise inventories at our distribution centers are stated at the lower of cost or net realizable value, determined on a weighted-average cost basis. Cost is assigned to store inventories using the retail inventory method on a weighted-average basis. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are computed by applying a calculated cost-to-retail ratio to the retail value of inventories. Costs directly associated with warehousing and distribution are capitalized as merchandise inventories. Total warehousing and distribution costs capitalized into inventory amounted to $298.6 million and $203.2 million at January 28, 2023 and January 29, 2022, respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Leasehold improvements are amortized over the shorter of the estimated useful lives of the respective assets or the related lease terms. Amortization is included in “Selling, general and administrative expenses” in the accompanying consolidated income statements. Costs incurred related to software developed for internal use are capitalized and amortized, generally over three years. Capitalized Interest We capitalize interest on borrowed funds during the construction of certain property and equipment. We capitalized $3.8 million, $1.1 million and $3.2 million of interest costs in the years ended January 28, 2023, January 29, 2022 and January 30, 2021, respectively. Insurance Reserves and Restricted Cash We utilize a combination of insurance and self-insurance programs, including a wholly-owned captive insurance entity, to provide for the potential liabilities for certain risks, including workers’ compensation, general liability and automobile liability. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering claims experience, exposure and severity factors and other actuarial assumptions. Dollar Tree Insurance, Inc., a South Carolina-based wholly-owned captive insurance subsidiary of ours, charges the operating subsidiary companies premiums to insure the retained workers’ compensation, general liability and automobile liability exposures. Pursuant to South Carolina insurance regulations, Dollar Tree Insurance, Inc. maintains certain levels of cash and cash equivalents related to its self-insured exposures. We also maintain certain cash balances related to our insurance programs which are held in trust and restricted as to withdrawal or use. These amounts are reflected in “Restricted cash” in the accompanying consolidated balance sheets. Lease Accounting Our lease portfolio primarily consists of leases for our retail store locations and we also lease vehicles and trailers, as well as distribution center space and equipment. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. We recognize expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of future lease payments. Inputs to the calculation of our incremental borrowing rate include the valuations and yields of our outstanding senior notes and their credit spreads over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification. Most leases include one or more options to renew and the exercise of renewal options is at our sole discretion. We do not include renewal options in our determination of the lease term unless the renewals are deemed to be reasonably certain. Operating lease expense for lease payments not yet paid is recognized on a straight-line basis over the lease term. The operating lease right-of-use asset is reduced by lease incentives, which has the effect of lowering the operating lease expense. Operating lease right-of-use assets are periodically reviewed for impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. We have real estate leases that typically include payments related to non-lease components, such as common area maintenance, as well as payments for real estate taxes and insurance which are not considered components of the lease. These payments are generally variable and based on actual costs incurred by the lessor. These costs are expensed as incurred as variable lease costs and excluded for the purpose of calculating the right-of-use asset and lease liability. A smaller number of real estate leases contain fixed payments for common area maintenance, real estate taxes and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use asset and lease liability. In addition, certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. These payments are expensed as incurred as variable lease costs. Our lease agreements do not contain any material residual value guarantees or material restrictive financial covenants. Purchased leases with terms which were either favorable or unfavorable as compared to prevailing market rates at the date of acquisition are amortized over the remaining lease terms, including, in some cases, an assumed renewal. Amortization expense, net of $29.9 million, $38.5 million and $48.1 million was recognized in “Selling, general and administrative expenses” in 2022, 2021 and 2020, respectively, related to these lease rights. Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of We review our long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets based on discounted cash flows or other readily available evidence of fair value, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In fiscal 2022, 2021 and 2020, we recorded charges of $39.9 million, $4.4 million and $4.6 million, respectively, to write down certain assets, including $20.1 million, $3.9 million and $3.8 million in fiscal 2022, 2021 and 2020, respectively, to write down Operating lease right-of-use assets. Included in 2022 is $14.0 million for West Memphis distribution center asset impairments. These charges are recorded as a component of “ Selling, general and administrative expenses Goodwill and Nonamortizing Intangible Assets Goodwill and nonamortizing intangible assets, including the Family Dollar trade name, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and nonamortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. For both goodwill and nonamortizing intangible assets, we have the option to initially perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. Alternatively, we may bypass the qualitative assessment in any given year and proceed directly to performing the quantitative impairment test. We perform our annual impairment testing of goodwill and nonamortizing intangible assets during the fourth quarter of each year. Our reporting units are determined in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” When a quantitative impairment test is performed for the Family Dollar trade name, we compare the fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. Our annual impairment evaluation of the Family Dollar trade name did not result in impairment charges during fiscal 2022, 2021 or 2020. Subsequent to the evaluation of the Family Dollar trade name for impairment, we evaluate goodwill for impairment. When a quantitative test is performed, we estimate the fair value of the reporting unit using a combination of a market multiple method and a discounted cash flow method. We recognize goodwill impairment for the amount by which the reporting unit’s carrying amount exceeds its estimated fair value, not to exceed the total carrying amount of goodwill allocated to the reporting unit. The annual goodwill impairment evaluations in 2022, 2021 and 2020 did not result in impairment. We have recorded cumulative goodwill impairment charges totaling $3,040.0 million, all of which relate to the Family Dollar reporting unit. Revenue Recognition We recognize sales revenue, net of estimated returns and sales tax, at the time the customer tenders payment for and takes control of the merchandise. Taxes Collected We report taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions (i.e., sales tax) on a net (excluded from revenue) basis. Cost of Sales We include the cost of merchandise, warehousing and distribution costs, and certain occupancy costs in cost of sales. Vendor Allowances We receive vendor support in the form of cash payments or allowances through a variety of reimbursements such as purchase discounts, cooperative advertising, markdowns, scandowns and volume rebates. We have agreements with vendors setting forth the specific conditions for each allowance or payment. We either recognize the allowance as a reduction of current costs or defer the payment over the period the related merchandise is sold. If the payment is a reimbursement for costs incurred, it is offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. Pre-Opening Costs We expense pre-opening costs for new, expanded, relocated and re-bannered stores and for distribution centers, as incurred. Advertising Costs We expense advertising costs as they are incurred and they are included in “Selling, general and administrative expenses” within the accompanying consolidated income statements. Advertising costs, net of co-op recoveries from vendors, were $99.5 million, $93.9 million and $80.8 million in fiscal 2022, 2021 and 2020, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. We recognize a financial statement benefit for a tax position if we determine that it is more likely than not that the position will be sustained upon examination. We include interest and penalties in the provision for income tax expense and income taxes payable. We do not provide for any penalties associated with tax contingencies unless they are considered probable of assessment. Stock-Based Compensation We recognize expense for all share-based payments to employees and non-employee directors based on their fair values. Total stock-based compensation expense for 2022, 2021 and 2020 was $110.4 million, $79.9 million and $83.9 million, respectively. We recognize expense related to the fair value of restricted stock units (RSUs) and stock options over the requisite service period on a straight-line basis or a shorter period based on the retirement eligibility of the grantee. The fair value of RSUs is determined using the closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. We account for forfeitures when they occur. Net Income Per Share Basic net income per share has been computed by dividing net income by the weighted average number of shares outstanding. Diluted net income per share reflects the potential dilution that could occur assuming the inclusion of dilutive potential shares and has been computed by dividing net income by the weighted average number of shares and dilutive potential shares outstanding. Dilutive potential shares include all outstanding stock options and unvested RSUs after applying the treasury stock method. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jan. 28, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Property, Plant and Equipment, Net Property, plant and equipment, net, as of January 28, 2023 and January 29, 2022 consists of the following: January 28, January 29, (in millions) 2023 2022 Land $ 242.6 $ 239.7 Buildings 1,631.6 1,568.2 Leasehold improvements 3,227.9 2,840.1 Furniture, fixtures and equipment 5,261.7 4,704.1 Construction in progress 633.8 489.0 Total property, plant and equipment 10,997.6 9,841.1 Less: accumulated depreciation 6,025.4 5,363.8 Total property, plant and equipment, net $ 4,972.2 $ 4,477.3 Depreciation expense was $737.4 million, $672.0 million, and $631.1 million for the years ended January 28, 2023, January 29, 2022, and January 30, 2021, respectively. Other Current Liabilities Other current liabilities as of January 28, 2023 and January 29, 2022 consist of the following: January 28, January 29, (in millions) 2023 2022 Taxes (other than income taxes) $ 253.7 $ 313.5 Compensation and benefits 143.9 123.8 Insurance 131.1 121.5 Other 289.0 243.2 Total other current liabilities $ 817.7 $ 802.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Current taxes: Federal $ 322.0 $ 271.1 $ 279.5 State 50.2 56.3 87.4 Foreign 0.1 0.1 0.2 Total current taxes 372.3 327.5 367.1 Deferred taxes: Federal 88.1 50.3 32.6 State 30.3 (76.5) (3.8) Foreign 4.5 3.0 2.0 Total deferred taxes 122.9 (23.2) 30.8 Provision for income taxes $ 495.2 $ 304.3 $ 397.9 A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows: Year Ended January 28, 2023 January 29, 2022 January 30, 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes, net of federal income tax benefit 3.7 3.7 3.2 Non-deductible executive compensation 0.7 0.4 0.4 State tax reserve release (0.3) (0.4) (0.5) Incremental tax expense (benefit) of exercises/vesting of equity-based (0.6) (0.5) 0.2 Work Opportunity Tax Credit (1.4) (1.8) (1.6) Deferred tax rate change 0.7 (3.8) — Change in valuation allowance (0.3) — — Other, net — — 0.2 Effective tax rate 23.5 % 18.6 % 22.9 % Foreign Taxes United States income taxes have not been provided on accumulated but undistributed earnings of our foreign subsidiaries as we intend to permanently reinvest earnings. We do not consider the tax on the mandatory deemed repatriation of undistributed foreign earnings and profits to be material. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred tax assets (liabilities) follow: (in millions) January 28, January 29, Deferred tax assets: Operating lease liabilities $ 1,703.5 $ 1,647.3 Net operating losses, interest expense and credit carryforwards 69.3 91.5 Accrued expenses 31.0 50.7 Accrued compensation expense 33.9 34.9 Inventory — 24.4 State tax election 14.3 15.8 Other 2.5 2.4 Total deferred tax assets 1,854.5 1,867.0 Valuation allowance (4.0) (13.0) Deferred tax assets, net 1,850.5 1,854.0 Deferred tax liabilities: Operating lease right-of-use assets (1,630.9) (1,578.4) Other intangibles (760.4) (780.9) Property and equipment (509.2) (435.6) Prepaids (25.9) (26.0) Inventory (14.8) — Total deferred tax liabilities (2,941.2) (2,820.9) Deferred income taxes, net $ (1,090.7) $ (966.9) At January 28, 2023, we had certain state tax credit carryforwards, net operating loss carryforwards and capital loss carryforwards totaling $69.3 million. Some of these carryforwards will expire, if not utilized, beginning in 2023 through 2042 . A valuation allowance of $4.0 million, net of federal tax benefits, has been provided principally for certain state credit carryforwards and net operating loss carryforwards. Since January 29, 2022, the valuation allowance has been decreased to reflect state credits and net operating losses expected to be utilized over the carryforward period. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred taxes will not be realized. Based upon the availability of carrybacks of future deductible amounts and our projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not the remaining existing deductible temporary differences will reverse during periods in which carrybacks are available or in which we generate net taxable income. Uncertain Tax Positions We are participating in the IRS Compliance Assurance Program (“CAP”) for fiscal 2022 and we have been accepted into the program for fiscal 2023. This program accelerates the examination of key transactions with the goal of resolving any issues before the tax return is filed. Our federal tax returns have been examined and all issues have been settled through the fiscal 2019 tax year, as well as the fiscal 2021 tax year. In fiscal 2020, we participated in the CAP under the IRS’s bridge year program and as a result, the IRS will not be completing an audit on the 2020 tax return at this time. Several states completed their examinations during fiscal 2022. In general, fiscal 2019 and forward are within the statute of limitations for state tax purposes. The statute of limitations is still open prior to fiscal 2019 for some states. The balance for unrecognized tax benefits at January 28, 2023 was $17.4 million. The total amount of unrecognized tax benefits at January 28, 2023 that, if recognized, would affect the effective tax rate was $13.8 million (net of the federal tax benefit). The following is a reconciliation of our total gross unrecognized tax benefits: (in millions) January 28, 2023 January 29, 2022 Beginning Balance $ 20.9 $ 22.6 Additions for tax positions of prior years 2.3 4.6 Additions, based on tax positions related to current year 4.0 2.7 Settlements (0.1) — Lapses in statutes of limitation (9.7) (9.0) Ending balance $ 17.4 $ 20.9 We believe it is reasonably possible that $2.5 million to $3.5 million of the reserve for uncertain tax positions may be reduced during the next 12 months principally as a result of the effective settlement of outstanding issues. It is also possible that state tax reserves will be reduced for audit settlements and statute expirations within the next 12 months. At this point it is not possible to estimate a range associated with the resolution of these audits. We do not expect any change to have a material impact to our consolidated financial statements. As of January 28, 2023, we have recorded a liability for potential interest and penalties of $1.5 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations At January 28, 2023, we have commitments totaling $300.5 million related to ocean shipping contracts and commitments of $243.5 million related to agreements for software licenses and support, telecommunication services and store technology assets and maintenance for our stores. We also have commitments totaling $105.4 million related to software agreements that we entered into subsequent to January 28, 2023. Letters of Credit We have $425.0 million in trade letters of credit with various financial institutions, under which $150.6 million was committed to these letters of credit issued for routine purchases of imported merchandise at January 28, 2023. Surety Bonds We have issued various surety bonds that primarily serve as collateral for utility payments at our stores and self-insured insurance programs. These bonds total $160.5 million and are committed through various dates through fiscal 2027. Contingencies We are defendants in legal proceedings including the class, collective, representative and large cases as well as individual claims in arbitration. We will vigorously defend ourselves in these matters. We do not believe that any of these matters will, individually or in the aggregate, have a material effect on our business or financial condition. We cannot give assurance, however, that one or more of these matters will not have a material effect on our results of operations for the quarter or year in which they are reserved or resolved. We assess our legal proceedings monthly and reserves are established if a loss is probable and the amount of such loss can be reasonably estimated. For matters that have settled, we reserve the estimated settlement amount. Many, if not substantially all, of our legal proceedings are subject to significant uncertainties and, therefore, determining the likelihood of a loss and the measurement of any loss can be complex and subject to judgment. With respect to the matters noted below where we have determined that a loss is reasonably possible but not probable, we are unable to reasonably estimate the amount or range of the possible loss at this time due to the inherent difficulty of predicting the outcome of and uncertainties regarding legal proceedings. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Management’s assessment of legal proceedings could change because of future determinations or the discovery of facts which are not presently known. Accordingly, the ultimate costs of resolving these proceedings may be substantially higher or lower than currently estimated. Active Matters On February 11, 2022, the FDA issued Form 483 observations primarily regarding rodent infestation at Family Dollar’s West Memphis, Arkansas distribution center (“DC 202”) and the related sale and distribution of adulterated product, as well as other processes and procedures that require remediation. In connection therewith, we initiated a retail-level product recall of FDA and U.S. Department of Agriculture-regulated products stored and shipped from DC 202 from January 1, 2021 through February 18, 2022 (the “Recall”), temporarily closed DC 202 for extensive cleaning, temporarily closed the affected stores to permit the removal and destruction of inventory subject to the Recall, ceased sales of relevant inventory subject to the Recall, ceased the direct shipment of FDA-regulated products from DC 202, and initiated corrective actions. In June 2022, we stopped shipping to stores from DC 202 and have since disposed of all of the inventory that was in the facility. On November 9, 2022 we received an FDA Warning Letter (“Warning Letter”) in connection with the DC 202 inspection. The conditions and issues detailed in the Warning Letter are generally the same as those described in the Form 483 observations or were otherwise observed during the inspection. The Warning Letter acknowledged certain remedial actions we have taken in response to the Form 483 observations, including conducting the recall and decommissioning the facility. We continue to cooperate with the FDA. Since February 22, 2022, Family Dollar has been named in 14 putative class action complaints primarily related to issues associated with DC 202 described above. The lawsuits are proceeding in federal court in Tennessee using the federal court’s multi-district litigation process. An amended consolidated complaint seeking class action status was filed October 17, 2022 alleging violations of the Mississippi, Arkansas, Louisiana, Tennessee, Alabama and Missouri consumer protection laws, breach of warranty, negligence, misrepresentation, deception and unjust enrichment related to the sale of products that may be contaminated by virtue of rodent infestation and other unsanitary conditions. Plaintiffs seek damages, attorney fees and costs, punitive damages and the replacement of, or refund of, money paid to purchase the relevant products, and any other legal relief available for their claims (in each case in unspecified amounts), including equitable and injunctive relief. We have filed a motion to dismiss the amended consolidated complaint. On March 1, 2022, a federal grand jury subpoena was issued to us by the Eastern District of Arkansas requesting the production of information, documents and records pertaining to pests, sanitation and compliance with law regarding certain of our procedures and products. In connection with this matter, we have been investigating the condition of FDA-regulated product shipped from DC 202. We are cooperating fully with the U.S. Department of Justice investigation, including having produced documents and provided additional information. As part of this cooperation, we may engage in discussions with the government in an effort to reach a negotiated resolution. Due to the inherent uncertainties associated with this matter, no assurance can be given as to the timing or outcome of this matter, which could include penalties and company undertakings. On April 28, 2022, the State of Arkansas filed a complaint in state court alleging violations of the Arkansas Deceptive Trade Practices Act, gross negligence and negligence, strict liability in tort, unjust enrichment and civil conspiracy related to the sale of products that may have been contaminated by virtue of rodent infestation and other unsanitary conditions. The State of Arkansas is seeking injunctive relief, restitution, disgorgement, damages, civil penalties, punitive damages and suspension or revocation of our authorization to do business in Arkansas. Seven personal injury lawsuits are pending in state court in Illinois, New York, Massachusetts, Texas, and New Jersey against Dollar Tree, Family Dollar or both alleging that certain talc products that we sold caused cancer. The plaintiffs seek compensatory, punitive and exemplary damages, damages for loss of consortium, and attorneys’ fees and costs. Although we have been able to resolve previous talc lawsuits against us without material loss, given the inherent uncertainties of litigation there can be no assurances regarding the outcome of pending or future cases. Future costs to litigate these cases are not known but may be material, and it is uncertain whether our costs will be covered by insurance. In addition, although we have indemnification rights against our vendors in several of these cases, it is uncertain whether the vendors will have the financial ability to fulfill their obligations to us. Since August 2022, six personal injury cases have been filed in federal court in California, Missouri, North Carolina and Minnesota against Dollar Tree, Family Dollar, or both, on behalf of minors alleging that their mothers took acetaminophen while pregnant, that the acetaminophen interfered with fetal development such that plaintiffs were born with autism and/or ADHD, and that we knew or should have known of the danger, had a duty to warn and failed to include appropriate warnings on the product labels. The plaintiffs seek compensatory, punitive and/or exemplary damages, restitution and disgorgement, economic damages, and attorneys’ fees and costs. These cases, along with other cases against many other defendants, have been consolidated in multi-district court litigation in the Southern District of New York. Resolved Matters All personal injury cases that were filed in state court in Pennsylvania against both Dollar Tree and Family Dollar alleging that both sold Zantac and generic ranitidine products containing N-Nitrosodimethylamine, which is classified by the FDA as a probable carcinogen, have been dismissed. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at January 28, 2023 and January 29, 2022 consists of the following: January 28, 2023 January 29, 2022 (in millions) Principal Unamortized Debt Discount and Issuance Costs Principal Unamortized Debt Discount and Issuance Costs $1.5 billion Revolving Credit Facility, interest payable at 5.79% at January 28, 2023 $ — $ 5.1 $ — $ 6.4 4.00% Senior Notes, due 2025 1,000.0 2.8 1,000.0 4.0 4.20% Senior Notes, due 2028 1,250.0 6.9 1,250.0 8.1 2.65% Senior Notes, due 2031 800.0 8.6 800.0 9.5 3.375% Senior Notes, due 2051 400.0 5.0 400.0 5.0 Total $ 3,450.0 $ 28.4 $ 3,450.0 $ 33.0 Maturities of long-term debt are as follows (in millions): 2023 2024 2025 2026 2027 Thereafter $ — $ — $ 1,000.0 $ — $ — $ 2,450.0 Revolving Credit Facility On December 8, 2021, we entered into a credit agreement (the “Credit Agreement”), with JPMorgan Chase Bank, N.A., as agent, and the financial institutions from time to time party thereto, providing for a $1.5 billion revolving credit facility (the “Revolving Credit Facility”), of which up to $350.0 million is available for letters of credit. The Revolving Credit Facility matures on December 8, 2026, subject to extensions permitted under the Credit Agreement. Loans under the Revolving Credit Facility bear interest at the Adjusted Term SOFR Rate (as defined in the Credit Agreement) plus 1.125%, subject to adjustment based on (i) our public debt rating and (ii) our leverage ratio. At January 28, 2023, the Revolving Credit Facility bore interest at 5.79%. We pay certain commitment fees in connection with the Revolving Credit Facility. The Revolving Credit Facility allows voluntary repayment of outstanding loans at any time without premium or penalty, other than customary “breakage” costs with respect to Secured Overnight Financing Rate (“SOFR”) loans. There is no required amortization under the Revolving Credit Facility. The Revolving Credit Facility contains a number of affirmative and negative covenants that, among other things, and subject to certain significant baskets and exceptions, restrict our ability to incur subsidiary indebtedness, incur liens, sell all or substantially all of our (including our subsidiaries’) assets and consummate certain fundamental changes. The Revolving Credit Facility also contains a maximum leverage ratio covenant and a minimum fixed charge coverage ratio covenant. The Credit Agreement provides for certain events of default which, if any of them occurs, would permit or require the loans under the Revolving Credit Facility to be declared due and payable and the commitments thereunder to be terminated. In connection with entry into the Credit Agreement, we terminated all commitments and fulfilled all obligations under our existing credit agreement dated April 19, 2018. Senior Notes Fiscal 2018 Offering On April 19, 2018, we completed the registered offering of $750.0 million aggregate principal amount of Senior Floating Rate Notes due 2020 (the “Floating Rate Notes”), $1.0 billion aggregate principal amount of 3.70% Senior Notes due 2023 (the “2023 Notes”), $1.0 billion aggregate principal amount of 4.00% Senior Notes due 2025 (the “2025 Notes”) and $1.25 billion aggregate principal amount of 4.20% Senior Notes due 2028 (the “2028 Notes” and together with the 2023 Notes and the 2025 Notes, the “Fixed Rate Notes”; and the Fixed Rate Notes together with the Floating Rate Notes, the “Notes”). The Notes were issued pursuant to an indenture, dated as of April 2, 2018 (the “Indenture”), between us and U.S. Bank National Association, as trustee, as supplemented by the First Supplemental Indenture dated as of April 19, 2018 (the “First Supplemental Indenture”). The Notes are unsecured, unsubordinated obligations of ours and rank equal in right of payment to all of our existing and future debt and other obligations that are not, by their terms, expressly subordinated in right of payment to the Notes. The Floating Rate Notes matured on April 17, 2020 and bore interest at a floating rate, reset quarterly, equal to LIBOR plus 70 basis points. The 2023 Notes were scheduled to mature on May 15, 2023 and bore interest at the rate of 3.70% annually. The 2025 Notes mature on May 15, 2025 and bear interest at the rate of 4.00% annually. The 2028 Notes mature on May 15, 2028 and bear interest at the rate of 4.20% annually. We are required to pay interest on the Fixed Rate Notes semiannually, in arrears, on May 15 and November 15 of each year to holders of record on the preceding May 1 and November 1, respectively. We may redeem (or may have redeemed) the Fixed Rate Notes of each series in whole or in part, at our option, at any time and from time to time prior to (i) in the case of the 2023 Notes, April 15, 2023, (ii) in the case of the 2025 Notes, March 15, 2025 and (iii) in the case of the 2028 Notes, February 15, 2028 (the date with respect to each such series, the “Applicable Par Call Date”), in each case, at a “make-whole” price described in the First Supplemental Indenture plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, on or after the Applicable Par Call Date, we may redeem the Fixed Rate Notes of the applicable series, at any time in whole or from time to time in part, at a redemption price equal to 100% of the principal amount thereof. In the event of a Change of Control Triggering Event, as defined in the Indenture, with respect to any series, the holders of the Notes of such series may require us to purchase for cash all or a portion of their Notes of such series at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. The Indenture limits our ability and that of our subsidiaries, subject to significant baskets and exceptions, to incur certain secured debt. The First Supplemental Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or to be declared due and payable, as applicable. Fiscal 2021 Offering On December 1, 2021, we completed the registered offering of $800.0 million aggregate principal amount of 2.65% Senior Notes due 2031 (the “2031 Notes”) and $400.0 million aggregate principal amount of 3.375% Senior Notes due 2051 (the “2051 Notes” and, together with the 2031 Notes, the “New Notes”). The New Notes were issued pursuant to the Indenture, as supplemented by the Second Supplemental Indenture dated as of December 1, 2021 (the “Second Supplemental Indenture”). The New Notes are unsecured, unsubordinated obligations of ours and rank equally in right of payment to all of our existing and future debt and other obligations that are not, by their terms, expressly subordinated in right of payment to the New Notes. The 2031 Notes mature on December 1, 2031 and bear interest at the rate of 2.650% per annum. The 2051 Notes mature on December 1, 2051 and bear interest at the rate of 3.375% per annum. We are required to pay interest on the New Notes semi-annually, in arrears, on June 1 and December 1 of each year to holders of record on the preceding May 15 and November 15, respectively. We may redeem the New Notes of each series in whole or in part at any time and from time to time prior to (i) in the case of the 2031 Notes, September 1, 2031, and (ii) in the case of the 2051 Notes, June 1, 2051 (the date with respect to each such series, the “Applicable Par Call Date”), in each case, at a “make-whole” price described in the Second Supplemental Indenture plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, on or after the Applicable Par Call Date, we may redeem the New Notes of the applicable series, at any time in whole or from time to time in part, at a redemption price equal to 100% of the principal amount thereof. In the event of a Change of Control Triggering Event (as defined in the Second Supplemental Indenture) with respect to any series, the holders of the New Notes of such series may require us to purchase for cash all or a portion of their New Notes of such series at a purchase price equal to 101% of the principal amount of such New Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. The Indenture limits our ability and that of our subsidiaries, subject to significant baskets and exceptions, to incur certain secured debt. The Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the New Notes to become or to be declared due and payable, as applicable. Repayments of Long-term Debt In the first quarter of 2020, we repaid the remaining $250.0 million outstanding under our $750.0 million Floating Rate Notes. In the fourth quarter of 2020, we repaid the $300.0 million 5.00% Senior Notes that we assumed upon the acquisition of Family Dollar in 2015. In the fourth quarter of 2021, we used the proceeds from the offering of the New Notes discussed above to redeem the $1.0 billion 2023 Notes. We incurred a redemption premium of $43.8 million in connection with the early redemption of the 2023 Notes and accelerated the expensing of $2.7 million of amortizable non-cash deferred financing and original issue discount costs, which are reflected in “Interest expense, net” within the accompanying consolidated income statements for the year ended January 29, 2022. Debt Covenants As of January 28, 2023, we were in compliance with our debt covenants. |
Leases
Leases | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Leases | Leases The lease cost for operating leases that was recognized in the accompanying consolidated income statements was as follows: Year Ended (in millions) January 28, 2023 January 29, 2022 January 30, 2021 Operating lease cost $ 1,652.8 $ 1,602.8 $ 1,551.2 Variable lease cost 428.8 417.8 391.4 Short-term lease cost 10.8 5.6 9.7 Total lease cost* $ 2,092.4 $ 2,026.2 $ 1,952.3 *Excludes sublease income, which is immaterial As of January 28, 2023, maturities of lease liabilities were as follows: (in millions) 2023 $ 1,657.7 2024 1,462.8 2025 1,232.0 2026 994.0 2027 733.0 Thereafter 1,358.6 Total undiscounted lease payments 7,438.1 Less interest 733.2 Present value of lease liabilities $ 6,704.9 The future lease payments above exclude $502.3 million of legally binding minimum lease payments for leases signed but not yet commenced as of January 28, 2023. Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is as follows: January 28, 2023 January 29, 2022 January 30, 2021 Weighted-average remaining lease term (years) 5.7 5.9 6.1 Weighted-average discount rate 3.6 % 3.4 % 3.9 % The following represents supplemental information pertaining to our operating lease arrangements: Year Ended (in millions) January 28, 2023 January 29, 2022 January 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,559.7 $ 1,579.8 $ 1,519.4 Distribution Center Lease and Related Bonds In May 2017, we entered into a long-term property lease (“Missouri Lease”) which includes land and the construction of a 1.2 million square foot distribution center in Warrensburg, Missouri (“Distribution Center Project”). The Distribution Center Project was completed in 2018 and our investment in the project of $88.4 million as of January 28, 2023 is reflected in “Property, plant and equipment, net.” The Missouri Lease commenced upon its execution in May 2017 and expires on December 1, 2032. We have two options to extend the Missouri Lease term for up to a combined additional ten years. Following the expiration of the lease, the property reverts back to us. In addition to being a party to the Missouri Lease, we are also the owner of bonds which were issued in May 2017, are secured by the Missouri Lease and expire December 1, 2032 (“Missouri Bonds”). The Missouri Bonds are debt issued by the lessor in the Missouri Lease. Therefore, we hold the debt instrument pertaining to our Missouri Lease obligation. Because a legal right of offset exists, we are accounting for the Missouri Bonds as a reduction of our Missouri Lease obligation in the accompanying consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and Level 3 - Unobservable inputs in which there is little or no market data which require the reporting entity to develop its own assumptions. As required, financial assets and liabilities are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). We review certain store assets for evidence of impairment. The fair values are determined based on the income approach, in which we utilize internal cash flow projections over the life of the underlying lease agreements discounted based on our risk-adjusted rate. These measures of fair value, and related inputs, are considered a Level 3 approach under the fair value hierarchy. Refer to Note 1 under the caption “Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of” for information regarding the impairment charges recorded in fiscal 2022, 2021 and 2020. Our indefinite-lived intangible assets are recorded at carrying value, and, if impaired, are adjusted to fair value using Level 3 inputs. Refer to Note 1 under the caption “Goodwill and Nonamortizing Intangible Assets” for further information regarding the process of determining the fair value of these assets. Fair Value of Financial Instruments The carrying amounts of Cash and cash equivalents, Restricted cash and Accounts payable as reported in the accompanying consolidated balance sheets approximate fair value due to their short-term maturities. The carrying value of our Revolving Credit Facility approximates its fair value. The aggregate fair values and carrying values of our long-term borrowings were as follows: January 28, 2023 January 29, 2022 (in millions) Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,162.8 $ 3,426.7 $ 3,558.5 $ 3,423.4 The fair values of our Senior Notes were determined using Level 1 inputs as quoted prices in active markets for identical assets or liabilities are available. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 28, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Preferred Stock We are authorized to issue 10,000,000 shares of Preferred Stock, $0.01 par value per share. No preferred shares are issued and outstanding at January 28, 2023 and January 29, 2022. Net Income Per Share The following table sets forth the calculations of basic and diluted net income per share: Year Ended January 28, January 29, January 30, (in millions, except per share data) 2023 2022 2021 Basic net income per share: Net income $ 1,615.4 $ 1,327.9 $ 1,341.9 Weighted average number of shares outstanding 223.2 227.9 236.4 Basic net income per share $ 7.24 $ 5.83 $ 5.68 Diluted net income per share: Net income $ 1,615.4 $ 1,327.9 $ 1,341.9 Weighted average number of shares outstanding 223.2 227.9 236.4 Dilutive effect of stock options and restricted stock (as determined by 0.9 1.1 0.9 Weighted average number of shares and dilutive potential shares 224.1 229.0 237.3 Diluted net income per share $ 7.21 $ 5.80 $ 5.65 For the year ended January 28, 2023, stock options and other stock-based awards of 3.0 million shares were excluded from the calculation of diluted net income per share because their inclusion would be anti-dilutive. For the years ended January 29, 2022 and January 30, 2021, substantially all of the stock options outstanding were included in the calculation of the weighted average number of shares and dilutive potential shares outstanding. Share Repurchase Programs We repurchased 4,613,696, 9,156,898 and 3,982,478 shares of common stock on the open market in fiscal 2022, fiscal 2021 and fiscal 2020, respectively, for $647.5 million, $950.0 million and $400.0 million, respectively. At January 28, 2023, we had $1.85 billion remaining under our Board repurchase authorization. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 28, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Dollar Tree Retirement Savings Plan We maintain a 401(k) plan which is available to all full-time, United States-based employees who are at least 18 years of age. Eligible employees may make elective salary deferrals. We may make contributions, at our discretion, to eligible employees who have completed one year of service in which they have worked at least 1,000 hours. Contributions to and reimbursements by us of expenses of the plan were recorded in the accompanying consolidated income statements as follows: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Cost of sales $ 8.6 $ 8.2 $ 7.4 Selling, general and administrative expenses 23.1 20.6 19.0 Total $ 31.7 $ 28.8 $ 26.4 All eligible employees are immediately vested in any company match contributions under the 401(k) plan. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Fixed Stock-Based Compensation Plans The 2011 Omnibus Incentive Plan permitted us to grant to our employees, consultants and directors up to 4.0 million shares of our Common Stock plus any shares available under former plans which were previously approved by the shareholders. The plan permitted us to grant equity awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), performance bonuses, performance share units (“PSUs”), non-employee director stock options and other equity-related awards. As of March 17, 2021, the plan was no longer available for new grants of awards, but all outstanding awards that were granted under the plan prior to March 17, 2021 continue to be governed by the terms and conditions of the plan and applicable award agreements. Effective June 10, 2021, the 2011 Omnibus Incentive Plan was replaced and superseded by the 2021 Omnibus Incentive Plan (“Omnibus Plan”). The Omnibus Plan permits us to grant up to 6.5 million shares of our Common Stock to our employees, consultants and directors. The form of equity awards authorized for grant under the Omnibus Plan are substantially the same as those permitted by the predecessor plan. Any restricted stock, RSUs or PSUs awarded are subject to certain general restrictions. The restricted stock shares or units may not be sold, transferred, pledged or disposed of until the restrictions on the shares or units have lapsed or have been removed under the provisions of the Omnibus Plan. In addition, if a holder of restricted shares or units ceases to be employed by us, any shares or units in which the restrictions have not lapsed will be forfeited. The 2013 Director Deferred Compensation Plan permits any of our directors who receive a retainer or other fees for Board or Board committee service to defer all or a portion of such fees until a future date, at which time they may be paid in cash or shares of our common stock, or receive all or a portion of such fees in non-statutory stock options. Deferred fees that are paid out in cash will earn interest at the 30-year Treasury Bond Rate. If a director elects to be paid in common stock, the number of shares will be determined by dividing the deferred fee amount by the closing market price of a share of our common stock on the date of deferral. The number of options issued to a director will equal the deferred fee amount divided by 33% of the price of a share of our common stock. The exercise price will equal the fair market value of our common stock at the date the option is issued. The options are fully vested when issued and have a term of 10 years. In conjunction with the acquisition of Family Dollar in 2015, we assumed the Family Dollar Stores, Inc. 2006 Incentive Plan (the “2006 Plan”). The 2006 Plan permitted the granting of a variety of compensatory award types, including stock options and performance share rights. Total stock-based compensation expense was recorded in the accompanying consolidated income statements as follows: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Cost of sales $ 19.7 $ 18.3 $ 15.4 Selling, general and administrative expenses 90.7 61.6 68.5 Total stock-based compensation expense $ 110.4 $ 79.9 $ 83.9 Excess tax benefit (deficit) on stock-based compensation $ 9.8 $ 8.5 $ (2.8) Restricted Stock We issue service-based RSUs to employees and officers and issue PSUs to certain of our officers. We recognize expense based on the estimated fair value of the RSUs or PSUs granted over the requisite service period, which is generally three years, on a straight-line basis or a shorter period based on the retirement eligibility of the grantee. The fair value of RSUs and PSUs is determined based on our closing stock price on the grant date. Service-Based RSUs The following table summarizes the status of service-based RSUs as of January 28, 2023 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 29, 2022 1,096,066 $ 94.16 Granted 468,929 158.05 Vested (546,036) 94.24 Forfeited (150,239) 120.72 Nonvested at January 28, 2023 868,720 $ 123.99 The total fair value of the service-based restricted shares vested during the years ended January 28, 2023, January 29, 2022 and January 30, 2021 was $51.5 million , $56.8 million and $48.5 million, respectively. The weighted average grant date fair value of the RSUs granted in 2022, 2021 and 2020 was $158.05, $109.01 and $73.24, respectively. As of January 28, 2023, there was $58.0 million of total unrecognized compensation expense related to these RSUs which is expected to be recognized over a weighted-average period of 1.2 years. PSUs The following table summarizes the status of PSUs as of January 28, 2023 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 29, 2022 584,972 $ 91.86 Granted 206,044 159.57 Vested (445,912) 99.87 Forfeited (190,281) 116.61 Nonvested at January 28, 2023 154,823 $ 125.84 The total fair value of the PSUs vested during the years ended January 28, 2023, January 29, 2022 and January 30, 2021 was $44.5 million, $17.3 million and $19.6 million, respectively. The weighted average grant date fair value of the PSUs granted in 2022, 2021 and 2020 was $159.57, $95.04 and $74.46, respectively. As of January 28, 2023, there was $9.9 million of total unrecognized compensation expense related to these PSUs which is expected to be recognized over a weighted-average period of 0.9 years. Stock Options Stock options are valued using the Black-Scholes option pricing model and compensation expense is recognized on a straight-line basis over the requisite service period. Options granted in 2021 and 2020 are immaterial. On March 19, 2022, we granted a one-time award of options to purchase 2,252,587 shares of our common stock with a fair value of $135.6 million to the Executive Chairman of the Board, who was also appointed Chief Executive Officer of the company effective January 29, 2023. The grant of options was subject to the terms and conditions of a five-year Executive Agreement. The option award has a ten-year term and is scheduled to vest in equal installments on each of the first five Expected term (in years) 6.5 Expected stock price volatility 34.1 % Dividend yield — % Risk-free interest rate 2.15 % The simplified method was used to estimate the expected term of the options due to our lack of historical option exercise experience and the “plain vanilla” characteristics of the option award. The simplified method results in an expected term equal to the average of the weighted average time-to-vesting and the contractual life of the options. The expected stock price volatility is based on the historical volatility of our common stock over a period matching the expected term of the options granted. The dividend yield reflects that we have never paid cash dividends. The risk-free interest rate represents the yield curve in effect at the time of grant for U.S. Treasury zero-coupon securities with maturities that approximate the expected term of the options. Certain of our directors elected to defer their compensation into stock options under the 2013 Director Deferred Compensation Plan. These options vest immediately and are expensed on the grant date. The following tables summarize information about options outstanding at January 28, 2023 and changes during the year then ended: Number of Shares Weighted Average Per Share Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding at January 29, 2022 24,541 $ 90.38 Granted 2,252,979 157.17 Exercised (583) 76.95 Outstanding at January 28, 2023 2,276,937 $ 156.46 9.1 $ 1.4 Exercisable at January 28, 2023 24,350 $ 90.92 3.8 $ 1.4 The intrinsic value of options exercised during 2022, 2021 and 2020 was less than $0.1 million, $5.6 million and $0.9 million, respectively. As of January 28, 2023, there was $112.1 million of total unrecognized compensation expense related to these options which is expected to be recognized over a weighted-average period of 4.1 years. |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 12 Months Ended |
Jan. 28, 2023 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | Segments and Disaggregated Revenue We operate more than 16,300 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our CODM regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income. The CODM reviews these metrics for each of our reporting segments. We may revise the measurement of each segment’s operating income, as determined by the information regularly reviewed by the CODM. If the measurement of a segment changes, prior period amounts and balances are reclassified to be comparable to the current period’s presentation. Corporate, support and Other consists primarily of store support center costs that are considered shared services and therefore these selling, general and administrative costs are excluded from our two reporting business segments. These costs include operating expenses for our store support center and the results of operations for our Summit Pointe property in Chesapeake, Virginia. The Family Dollar segment Operating income includes advertising revenue, which is a component of Other revenue in the accompanying consolidated income statements. Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income before income taxes, is as follows: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Consolidated Income Statement Data: Net sales: Dollar Tree $ 15,405.7 $ 13,922.1 $ 13,265.0 Family Dollar 12,912.5 12,387.7 12,243.4 Consolidated Net sales $ 28,318.2 $ 26,309.8 $ 25,508.4 Gross profit: Dollar Tree $ 5,775.5 $ 4,603.6 $ 4,543.8 Family Dollar 3,146.4 3,122.3 3,243.6 Consolidated Gross profit $ 8,921.9 $ 7,725.9 $ 7,787.4 Operating income (loss): Dollar Tree $ 2,536.0 $ 1,607.0 $ 1,598.0 Family Dollar 127.5 543.1 655.6 Corporate, support and Other (427.2) (338.7) (365.7) Consolidated Operating income 2,236.3 1,811.4 1,887.9 Interest expense, net 125.3 178.9 147.3 Other expense, net 0.4 0.3 0.8 Income before income taxes $ 2,110.6 $ 1,632.2 $ 1,739.8 Depreciation and amortization expense: Dollar Tree $ 338.8 $ 316.0 $ 302.3 Family Dollar 402.4 369.8 352.6 Corporate, support and Other 26.8 30.2 31.8 Consolidated depreciation and amortization expense $ 768.0 $ 716.0 $ 686.7 As of January 28, January 29, (in millions) 2023 2022 Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 423.6 $ 424.9 Family Dollar 1,559.5 1,559.5 Consolidated Goodwill $ 1,983.1 $ 1,984.4 Total assets: Dollar Tree $ 9,914.6 $ 9,358.4 Family Dollar 12,562.2 11,871.8 Corporate, support and Other 545.3 491.6 Consolidated Total assets $ 23,022.1 $ 21,721.8 Additions to property, plant and equipment: Dollar Tree $ 548.7 $ 477.1 Family Dollar 605.2 498.9 Corporate, support and Other 94.9 45.2 Consolidated additions to property, plant and equipment $ 1,248.8 $ 1,021.2 Disaggregated Revenue The following table summarizes net sales by merchandise category for our segments: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Dollar Tree segment net sales by Consumable $ 6,978.8 45.3 % $ 6,334.5 45.5 % $ 6,407.0 48.3 % Variety 7,456.3 48.4 % 6,794.0 48.8 % 6,194.8 46.7 % Seasonal 970.6 6.3 % 793.6 5.7 % 663.2 5.0 % Total Dollar Tree segment net sales $ 15,405.7 100.0 % $ 13,922.1 100.0 % $ 13,265.0 100.0 % Family Dollar segment net sales by Consumable $ 10,036.2 77.7 % $ 9,446.5 76.3 % $ 9,367.8 76.5 % Home products 982.5 7.6 % 1,033.9 8.3 % 1,078.1 8.8 % Apparel and accessories 732.2 5.7 % 781.5 6.3 % 690.1 5.6 % Seasonal and electronics 1,161.6 9.0 % 1,125.8 9.1 % 1,107.4 9.1 % Total Family Dollar segment net sales $ 12,912.5 100.0 % $ 12,387.7 100.0 % $ 12,243.4 100.0 % |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segment Information | Segment Information At January 28, 2023, we operate more than 16,300 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Dollar Tree segment is the leading operator of discount variety stores offering merchandise predominantly at the fixed price point of $1.25. The Dollar Tree segment includes our operations under the “Dollar Tree” and “Dollar Tree Canada” brands, 15 distribution centers in the United States and two distribution centers in Canada. |
Foreign Currency | Foreign Currency The functional currencies of certain of our international subsidiaries are the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions, which are included in “Other expense, net” have not been significant. |
Fiscal Year | Fiscal Year Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to January 31. References to “2022” or “fiscal 2022,” “2021” or “fiscal 2021,” and “2020” or “fiscal 2020” relate to the 52-week fiscal years ended January 28, 2023, January 29, 2022, and January 30, 2021, respectively. “2023” or “fiscal 2023” refers to the 53-week fiscal year ending February 3, 2024. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents at January 28, 2023 and January 29, 2022 includes $317.2 million and $680.6 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. We consider all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions process within three business days, and therefore are classified as cash and cash equivalents. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories at our distribution centers are stated at the lower of cost or net realizable value, determined on a weighted-average cost basis. Cost is assigned to store inventories using the retail inventory method on a weighted-average basis. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are computed by applying a calculated cost-to-retail ratio to the retail value of inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Leasehold improvements are amortized over the shorter of the estimated useful lives of the respective assets or the related lease terms. Amortization is included in “Selling, general and administrative expenses” in the accompanying consolidated income statements. Costs incurred related to software developed for internal use are capitalized and amortized, generally over three years. |
Capitalized Interest | Capitalized Interest We capitalize interest on borrowed funds during the construction of certain property and equipment. |
Insurance Reserves and Restricted Cash | Insurance Reserves and Restricted Cash We utilize a combination of insurance and self-insurance programs, including a wholly-owned captive insurance entity, to provide for the potential liabilities for certain risks, including workers’ compensation, general liability and automobile liability. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering claims experience, exposure and severity factors and other actuarial assumptions. Dollar Tree Insurance, Inc., a South Carolina-based wholly-owned captive insurance subsidiary of ours, charges the operating subsidiary companies premiums to insure the retained workers’ compensation, general liability and automobile liability exposures. Pursuant to South Carolina insurance regulations, Dollar Tree Insurance, Inc. maintains certain levels of cash and cash equivalents related to its self-insured exposures. We also maintain certain cash balances related to our insurance programs which are held in trust and restricted as to withdrawal or use. These amounts are reflected in “Restricted cash” in the accompanying consolidated balance sheets. |
Lease Accounting | Lease Accounting Our lease portfolio primarily consists of leases for our retail store locations and we also lease vehicles and trailers, as well as distribution center space and equipment. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. We recognize expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of future lease payments. Inputs to the calculation of our incremental borrowing rate include the valuations and yields of our outstanding senior notes and their credit spreads over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification. Most leases include one or more options to renew and the exercise of renewal options is at our sole discretion. We do not include renewal options in our determination of the lease term unless the renewals are deemed to be reasonably certain. Operating lease expense for lease payments not yet paid is recognized on a straight-line basis over the lease term. The operating lease right-of-use asset is reduced by lease incentives, which has the effect of lowering the operating lease expense. Operating lease right-of-use assets are periodically reviewed for impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. We have real estate leases that typically include payments related to non-lease components, such as common area maintenance, as well as payments for real estate taxes and insurance which are not considered components of the lease. These payments are generally variable and based on actual costs incurred by the lessor. These costs are expensed as incurred as variable lease costs and excluded for the purpose of calculating the right-of-use asset and lease liability. A smaller number of real estate leases contain fixed payments for common area maintenance, real estate taxes and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use asset and lease liability. In addition, certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. These payments are expensed as incurred as variable lease costs. Our lease agreements do not contain any material residual value guarantees or material restrictive financial covenants. Purchased leases with terms which were either favorable or unfavorable as compared to prevailing market rates at the date of acquisition are amortized over the remaining lease terms, including, in some cases, an assumed renewal. Amortization expense, net of $29.9 million, $38.5 million and $48.1 million was recognized in “Selling, general and administrative expenses” in 2022, 2021 and 2020, respectively, related to these lease rights. |
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of We review our long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets based on discounted cash flows or other readily available evidence of fair value, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In fiscal 2022, 2021 and 2020, we recorded charges of $39.9 million, $4.4 million and $4.6 million, respectively, to write down certain assets, including $20.1 million, $3.9 million and $3.8 million in fiscal 2022, 2021 and 2020, respectively, to write down Operating lease right-of-use assets. Included in 2022 is $14.0 million for West Memphis distribution center asset impairments. These charges are recorded as a component of “ Selling, general and administrative expenses |
Goodwill and Nonamortizing Intangible Assets | Goodwill and Nonamortizing Intangible Assets Goodwill and nonamortizing intangible assets, including the Family Dollar trade name, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and nonamortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. For both goodwill and nonamortizing intangible assets, we have the option to initially perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. Alternatively, we may bypass the qualitative assessment in any given year and proceed directly to performing the quantitative impairment test. We perform our annual impairment testing of goodwill and nonamortizing intangible assets during the fourth quarter of each year. Our reporting units are determined in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” When a quantitative impairment test is performed for the Family Dollar trade name, we compare the fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. Our annual impairment evaluation of the Family Dollar trade name did not result in impairment charges during fiscal 2022, 2021 or 2020. Subsequent to the evaluation of the Family Dollar trade name for impairment, we evaluate goodwill for impairment. When a quantitative test is performed, we estimate the fair value of the reporting unit using a combination of a market multiple method and a discounted cash flow method. We recognize goodwill impairment for the amount by which the reporting unit’s carrying amount exceeds its estimated fair value, not to exceed the total carrying amount of goodwill allocated to the reporting unit. The annual goodwill impairment evaluations in 2022, 2021 and 2020 did not result in impairment. We have recorded cumulative goodwill impairment charges totaling $3,040.0 million, all of which relate to the Family Dollar reporting unit. |
Revenue Recognition and Taxes Collected | Revenue Recognition We recognize sales revenue, net of estimated returns and sales tax, at the time the customer tenders payment for and takes control of the merchandise. Taxes Collected We report taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions (i.e., sales tax) on a net (excluded from revenue) basis. |
Cost of Sales and Vendor Allowances | Cost of Sales We include the cost of merchandise, warehousing and distribution costs, and certain occupancy costs in cost of sales. Vendor Allowances We receive vendor support in the form of cash payments or allowances through a variety of reimbursements such as purchase discounts, cooperative advertising, markdowns, scandowns and volume rebates. We have agreements with vendors setting forth the specific conditions for each allowance or payment. We either recognize the allowance as a reduction of current costs or defer the payment over the period the related merchandise is sold. If the payment is a reimbursement for costs incurred, it is offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. |
Pre-Opening Costs | Pre-Opening Costs We expense pre-opening costs for new, expanded, relocated and re-bannered stores and for distribution centers, as incurred. |
Advertising Costs | Advertising CostsWe expense advertising costs as they are incurred and they are included in “Selling, general and administrative expenses” within the accompanying consolidated income statements. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. We recognize a financial statement benefit for a tax position if we determine that it is more likely than not that the position will be sustained upon examination. We include interest and penalties in the provision for income tax expense and income taxes payable. We do not provide for any penalties associated with tax contingencies unless they are considered probable of assessment. |
Stock-Based Compensation | Stock-Based Compensation We recognize expense for all share-based payments to employees and non-employee directors based on their fair values. Total stock-based compensation expense for 2022, 2021 and 2020 was $110.4 million, $79.9 million and $83.9 million, respectively. |
Net Income Per Share | Net Income Per Share Basic net income per share has been computed by dividing net income by the weighted average number of shares outstanding. Diluted net income per share reflects the potential dilution that could occur assuming the inclusion of dilutive potential shares and has been computed by dividing net income by the weighted average number of shares and dilutive potential shares outstanding. Dilutive potential shares include all outstanding stock options and unvested RSUs after applying the treasury stock method. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Property, plant and equipment, net, as of January 28, 2023 and January 29, 2022 consists of the following: January 28, January 29, (in millions) 2023 2022 Land $ 242.6 $ 239.7 Buildings 1,631.6 1,568.2 Leasehold improvements 3,227.9 2,840.1 Furniture, fixtures and equipment 5,261.7 4,704.1 Construction in progress 633.8 489.0 Total property, plant and equipment 10,997.6 9,841.1 Less: accumulated depreciation 6,025.4 5,363.8 Total property, plant and equipment, net $ 4,972.2 $ 4,477.3 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings 39 to 40 years Furniture, fixtures and equipment 3 to 15 years Property, plant and equipment, net, as of January 28, 2023 and January 29, 2022 consists of the following: January 28, January 29, (in millions) 2023 2022 Land $ 242.6 $ 239.7 Buildings 1,631.6 1,568.2 Leasehold improvements 3,227.9 2,840.1 Furniture, fixtures and equipment 5,261.7 4,704.1 Construction in progress 633.8 489.0 Total property, plant and equipment 10,997.6 9,841.1 Less: accumulated depreciation 6,025.4 5,363.8 Total property, plant and equipment, net $ 4,972.2 $ 4,477.3 |
Schedule of Other Current Liabilities | Other current liabilities as of January 28, 2023 and January 29, 2022 consist of the following: January 28, January 29, (in millions) 2023 2022 Taxes (other than income taxes) $ 253.7 $ 313.5 Compensation and benefits 143.9 123.8 Insurance 131.1 121.5 Other 289.0 243.2 Total other current liabilities $ 817.7 $ 802.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | The provision for income taxes consists of the following: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Current taxes: Federal $ 322.0 $ 271.1 $ 279.5 State 50.2 56.3 87.4 Foreign 0.1 0.1 0.2 Total current taxes 372.3 327.5 367.1 Deferred taxes: Federal 88.1 50.3 32.6 State 30.3 (76.5) (3.8) Foreign 4.5 3.0 2.0 Total deferred taxes 122.9 (23.2) 30.8 Provision for income taxes $ 495.2 $ 304.3 $ 397.9 |
Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows: Year Ended January 28, 2023 January 29, 2022 January 30, 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes, net of federal income tax benefit 3.7 3.7 3.2 Non-deductible executive compensation 0.7 0.4 0.4 State tax reserve release (0.3) (0.4) (0.5) Incremental tax expense (benefit) of exercises/vesting of equity-based (0.6) (0.5) 0.2 Work Opportunity Tax Credit (1.4) (1.8) (1.6) Deferred tax rate change 0.7 (3.8) — Change in valuation allowance (0.3) — — Other, net — — 0.2 Effective tax rate 23.5 % 18.6 % 22.9 % |
Components of Deferred Tax Assets and Liabilities | Significant components of our net deferred tax assets (liabilities) follow: (in millions) January 28, January 29, Deferred tax assets: Operating lease liabilities $ 1,703.5 $ 1,647.3 Net operating losses, interest expense and credit carryforwards 69.3 91.5 Accrued expenses 31.0 50.7 Accrued compensation expense 33.9 34.9 Inventory — 24.4 State tax election 14.3 15.8 Other 2.5 2.4 Total deferred tax assets 1,854.5 1,867.0 Valuation allowance (4.0) (13.0) Deferred tax assets, net 1,850.5 1,854.0 Deferred tax liabilities: Operating lease right-of-use assets (1,630.9) (1,578.4) Other intangibles (760.4) (780.9) Property and equipment (509.2) (435.6) Prepaids (25.9) (26.0) Inventory (14.8) — Total deferred tax liabilities (2,941.2) (2,820.9) Deferred income taxes, net $ (1,090.7) $ (966.9) |
Reconciliation of Unrecognized Tax Benefits | The following is a reconciliation of our total gross unrecognized tax benefits: (in millions) January 28, 2023 January 29, 2022 Beginning Balance $ 20.9 $ 22.6 Additions for tax positions of prior years 2.3 4.6 Additions, based on tax positions related to current year 4.0 2.7 Settlements (0.1) — Lapses in statutes of limitation (9.7) (9.0) Ending balance $ 17.4 $ 20.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt at January 28, 2023 and January 29, 2022 consists of the following: January 28, 2023 January 29, 2022 (in millions) Principal Unamortized Debt Discount and Issuance Costs Principal Unamortized Debt Discount and Issuance Costs $1.5 billion Revolving Credit Facility, interest payable at 5.79% at January 28, 2023 $ — $ 5.1 $ — $ 6.4 4.00% Senior Notes, due 2025 1,000.0 2.8 1,000.0 4.0 4.20% Senior Notes, due 2028 1,250.0 6.9 1,250.0 8.1 2.65% Senior Notes, due 2031 800.0 8.6 800.0 9.5 3.375% Senior Notes, due 2051 400.0 5.0 400.0 5.0 Total $ 3,450.0 $ 28.4 $ 3,450.0 $ 33.0 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt are as follows (in millions): 2023 2024 2025 2026 2027 Thereafter $ — $ — $ 1,000.0 $ — $ — $ 2,450.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Operating lease information | The lease cost for operating leases that was recognized in the accompanying consolidated income statements was as follows: Year Ended (in millions) January 28, 2023 January 29, 2022 January 30, 2021 Operating lease cost $ 1,652.8 $ 1,602.8 $ 1,551.2 Variable lease cost 428.8 417.8 391.4 Short-term lease cost 10.8 5.6 9.7 Total lease cost* $ 2,092.4 $ 2,026.2 $ 1,952.3 *Excludes sublease income, which is immaterial Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is as follows: January 28, 2023 January 29, 2022 January 30, 2021 Weighted-average remaining lease term (years) 5.7 5.9 6.1 Weighted-average discount rate 3.6 % 3.4 % 3.9 % The following represents supplemental information pertaining to our operating lease arrangements: Year Ended (in millions) January 28, 2023 January 29, 2022 January 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,559.7 $ 1,579.8 $ 1,519.4 |
Maturities of lease liabilities | As of January 28, 2023, maturities of lease liabilities were as follows: (in millions) 2023 $ 1,657.7 2024 1,462.8 2025 1,232.0 2026 994.0 2027 733.0 Thereafter 1,358.6 Total undiscounted lease payments 7,438.1 Less interest 733.2 Present value of lease liabilities $ 6,704.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair values and carrying values of long-term borrowings | The aggregate fair values and carrying values of our long-term borrowings were as follows: January 28, 2023 January 29, 2022 (in millions) Fair Value Carrying Value Fair Value Carrying Value Level 1 Senior Notes $ 3,162.8 $ 3,426.7 $ 3,558.5 $ 3,423.4 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of basic and diluted net income per share | The following table sets forth the calculations of basic and diluted net income per share: Year Ended January 28, January 29, January 30, (in millions, except per share data) 2023 2022 2021 Basic net income per share: Net income $ 1,615.4 $ 1,327.9 $ 1,341.9 Weighted average number of shares outstanding 223.2 227.9 236.4 Basic net income per share $ 7.24 $ 5.83 $ 5.68 Diluted net income per share: Net income $ 1,615.4 $ 1,327.9 $ 1,341.9 Weighted average number of shares outstanding 223.2 227.9 236.4 Dilutive effect of stock options and restricted stock (as determined by 0.9 1.1 0.9 Weighted average number of shares and dilutive potential shares 224.1 229.0 237.3 Diluted net income per share $ 7.21 $ 5.80 $ 5.65 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined Contribution Plan Expenses Table | Contributions to and reimbursements by us of expenses of the plan were recorded in the accompanying consolidated income statements as follows: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Cost of sales $ 8.6 $ 8.2 $ 7.4 Selling, general and administrative expenses 23.1 20.6 19.0 Total $ 31.7 $ 28.8 $ 26.4 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Total stock-based compensation expense was recorded in the accompanying consolidated income statements as follows: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Cost of sales $ 19.7 $ 18.3 $ 15.4 Selling, general and administrative expenses 90.7 61.6 68.5 Total stock-based compensation expense $ 110.4 $ 79.9 $ 83.9 Excess tax benefit (deficit) on stock-based compensation $ 9.8 $ 8.5 $ (2.8) |
Schedule of Restricted Stock Units Activity | The following table summarizes the status of service-based RSUs as of January 28, 2023 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 29, 2022 1,096,066 $ 94.16 Granted 468,929 158.05 Vested (546,036) 94.24 Forfeited (150,239) 120.72 Nonvested at January 28, 2023 868,720 $ 123.99 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the status of PSUs as of January 28, 2023 and changes during the year then ended: Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 29, 2022 584,972 $ 91.86 Granted 206,044 159.57 Vested (445,912) 99.87 Forfeited (190,281) 116.61 Nonvested at January 28, 2023 154,823 $ 125.84 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the Black-Scholes option pricing model for this award are as follows: Expected term (in years) 6.5 Expected stock price volatility 34.1 % Dividend yield — % Risk-free interest rate 2.15 % |
Schedule of Stock Option Activity | The following tables summarize information about options outstanding at January 28, 2023 and changes during the year then ended: Number of Shares Weighted Average Per Share Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding at January 29, 2022 24,541 $ 90.38 Granted 2,252,979 157.17 Exercised (583) 76.95 Outstanding at January 28, 2023 2,276,937 $ 156.46 9.1 $ 1.4 Exercisable at January 28, 2023 24,350 $ 90.92 3.8 $ 1.4 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income before income taxes, is as follows: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Consolidated Income Statement Data: Net sales: Dollar Tree $ 15,405.7 $ 13,922.1 $ 13,265.0 Family Dollar 12,912.5 12,387.7 12,243.4 Consolidated Net sales $ 28,318.2 $ 26,309.8 $ 25,508.4 Gross profit: Dollar Tree $ 5,775.5 $ 4,603.6 $ 4,543.8 Family Dollar 3,146.4 3,122.3 3,243.6 Consolidated Gross profit $ 8,921.9 $ 7,725.9 $ 7,787.4 Operating income (loss): Dollar Tree $ 2,536.0 $ 1,607.0 $ 1,598.0 Family Dollar 127.5 543.1 655.6 Corporate, support and Other (427.2) (338.7) (365.7) Consolidated Operating income 2,236.3 1,811.4 1,887.9 Interest expense, net 125.3 178.9 147.3 Other expense, net 0.4 0.3 0.8 Income before income taxes $ 2,110.6 $ 1,632.2 $ 1,739.8 Depreciation and amortization expense: Dollar Tree $ 338.8 $ 316.0 $ 302.3 Family Dollar 402.4 369.8 352.6 Corporate, support and Other 26.8 30.2 31.8 Consolidated depreciation and amortization expense $ 768.0 $ 716.0 $ 686.7 As of January 28, January 29, (in millions) 2023 2022 Consolidated Balance Sheet Data: Goodwill: Dollar Tree $ 423.6 $ 424.9 Family Dollar 1,559.5 1,559.5 Consolidated Goodwill $ 1,983.1 $ 1,984.4 Total assets: Dollar Tree $ 9,914.6 $ 9,358.4 Family Dollar 12,562.2 11,871.8 Corporate, support and Other 545.3 491.6 Consolidated Total assets $ 23,022.1 $ 21,721.8 Additions to property, plant and equipment: Dollar Tree $ 548.7 $ 477.1 Family Dollar 605.2 498.9 Corporate, support and Other 94.9 45.2 Consolidated additions to property, plant and equipment $ 1,248.8 $ 1,021.2 |
Disaggregation of Revenue | The following table summarizes net sales by merchandise category for our segments: Year Ended January 28, January 29, January 30, (in millions) 2023 2022 2021 Dollar Tree segment net sales by Consumable $ 6,978.8 45.3 % $ 6,334.5 45.5 % $ 6,407.0 48.3 % Variety 7,456.3 48.4 % 6,794.0 48.8 % 6,194.8 46.7 % Seasonal 970.6 6.3 % 793.6 5.7 % 663.2 5.0 % Total Dollar Tree segment net sales $ 15,405.7 100.0 % $ 13,922.1 100.0 % $ 13,265.0 100.0 % Family Dollar segment net sales by Consumable $ 10,036.2 77.7 % $ 9,446.5 76.3 % $ 9,367.8 76.5 % Home products 982.5 7.6 % 1,033.9 8.3 % 1,078.1 8.8 % Apparel and accessories 732.2 5.7 % 781.5 6.3 % 690.1 5.6 % Seasonal and electronics 1,161.6 9.0 % 1,125.8 9.1 % 1,107.4 9.1 % Total Family Dollar segment net sales $ 12,912.5 100.0 % $ 12,387.7 100.0 % $ 12,243.4 100.0 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Jan. 28, 2023 USD ($) state distribution_center province store segment | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | Feb. 01, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Number of retail discount stores | store | 16,300 | |||
Number of states/provinces the Company operates in | state | 48 | |||
Number of reporting business segments | segment | 2 | |||
Money market securities valued at cost, in cash and cash equivalents | $ 317,200,000 | $ 680,600,000 | ||
Warehousing and distribution costs capitalized into inventory | 298,600,000 | 203,200,000 | ||
Interest costs capitalized | 3,800,000 | 1,100,000 | $ 3,200,000 | |
Operating lease right-of-use assets | 6,458,000,000 | 6,425,300,000 | ||
Operating lease liabilities | 6,704,900,000 | |||
Stockholders' equity | (8,751,500,000) | (7,718,500,000) | (7,285,300,000) | $ (6,254,800,000) |
Amortization expense, net | 29,900,000 | 38,500,000 | 48,100,000 | |
Impairment charge for certain store assets | 39,900,000 | 4,400,000 | 4,600,000 | |
Operating lease, impairment loss | 20,100,000 | $ 3,900,000 | $ 3,800,000 | |
Asset impaiment | $ 14,000,000 | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses | |
Impairment of indefinite lived intangible assets | $ 0 | $ 0 | $ 0 | |
Advertising costs | 99,500,000 | 93,900,000 | 80,800,000 | |
Stock-based compensation expense | 110,400,000 | 79,900,000 | 83,900,000 | |
Family Dollar | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative goodwill impairment charges | $ 3,040,000,000 | |||
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 39 years | |||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 40 years | |||
Furniture, fixtures and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years | |||
Furniture, fixtures and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 15 years | |||
Software Development | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years | |||
Dollar Tree | ||||
Property, Plant and Equipment [Line Items] | ||||
Merchandise fixed price | $ 1.25 | |||
Family Dollar | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of distribution centers | distribution_center | 10 | |||
Canada | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of states/provinces the Company operates in | province | 5 | |||
Canada | Dollar Tree | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of distribution centers | distribution_center | 2 | |||
United States | Dollar Tree | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of distribution centers | distribution_center | 15 | |||
Retained Earnings | ||||
Property, Plant and Equipment [Line Items] | ||||
Stockholders' equity | $ (8,123,000,000) | $ (6,507,600,000) | $ (5,179,700,000) | $ (3,837,800,000) |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | $ 10,997.6 | $ 9,841.1 | |
Less: accumulated depreciation | 6,025.4 | 5,363.8 | |
Total property, plant and equipment, net | 4,972.2 | 4,477.3 | |
Depreciation expense | 737.4 | 672 | $ 631.1 |
Other Current Liabilities | |||
Taxes (other than income taxes) | 253.7 | 313.5 | |
Compensation and benefits | 143.9 | 123.8 | |
Insurance | 131.1 | 121.5 | |
Other | 289 | 243.2 | |
Total other current liabilities | 817.7 | 802 | |
Land | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 242.6 | 239.7 | |
Buildings | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 1,631.6 | 1,568.2 | |
Leasehold improvements | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 3,227.9 | 2,840.1 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | 5,261.7 | 4,704.1 | |
Construction in progress | |||
Property, Plant and Equipment, Net | |||
Total property, plant and equipment | $ 633.8 | $ 489 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Current taxes: | |||
Federal | $ 322 | $ 271.1 | $ 279.5 |
State | 50.2 | 56.3 | 87.4 |
Foreign | 0.1 | 0.1 | 0.2 |
Total current taxes | 372.3 | 327.5 | 367.1 |
Deferred taxes: | |||
Federal | 88.1 | 50.3 | 32.6 |
State | 30.3 | (76.5) | (3.8) |
Foreign | 4.5 | 3 | 2 |
Total deferred taxes | 122.9 | (23.2) | 30.8 |
Provision for income taxes | $ 495.2 | $ 304.3 | $ 397.9 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
Effect of: | |||
State and local income taxes, net of federal income tax benefit | 3.70% | 3.70% | 3.20% |
Non-deductible executive compensation | 0.70% | 0.40% | 0.40% |
State tax reserve release | (0.30%) | (0.40%) | (0.50%) |
Incremental tax expense (benefit) of exercises/vesting of equity-based compensation | (0.60%) | (0.50%) | 0.20% |
Work Opportunity Tax Credit | (1.40%) | (1.80%) | (1.60%) |
Deferred tax rate change | 0.70% | (3.80%) | 0% |
Change in valuation allowance | (0.30%) | 0% | 0% |
Other, net | 0% | 0% | 0.20% |
Effective tax rate | 23.50% | 18.60% | 22.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 |
Income Tax Contingency [Line Items] | |||
Operating loss carryforward, credit carryforward and capital loss carryforward | $ 69.3 | ||
Valuation allowance | 4 | $ 13 | |
Unrecognized tax benefits | 17.4 | $ 20.9 | $ 22.6 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 13.8 | ||
Liability for potential interest and penalties | 1.5 | ||
Minimum | |||
Income Tax Contingency [Line Items] | |||
Decrease in unrecognized tax benefits is reasonably possible | 2.5 | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Decrease in unrecognized tax benefits is reasonably possible | $ 3.5 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Deferred tax assets: | ||
Operating lease liabilities | $ 1,703.5 | $ 1,647.3 |
Net operating losses, interest expense and credit carryforwards | 69.3 | 91.5 |
Accrued expenses | 31 | 50.7 |
Accrued compensation expense | 33.9 | 34.9 |
Inventory | 0 | 24.4 |
State tax election | 14.3 | 15.8 |
Other | 2.5 | 2.4 |
Total deferred tax assets | 1,854.5 | 1,867 |
Valuation allowance | (4) | (13) |
Deferred tax assets, net | 1,850.5 | 1,854 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | (1,630.9) | (1,578.4) |
Other intangibles | (760.4) | (780.9) |
Property and equipment | (509.2) | (435.6) |
Prepaids | (25.9) | (26) |
Inventory | (14.8) | 0 |
Total deferred tax liabilities | (2,941.2) | (2,820.9) |
Deferred income taxes, net | $ (1,090.7) | $ (966.9) |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning Balance | $ 20.9 | $ 22.6 |
Additions for tax positions of prior years | 2.3 | 4.6 |
Additions, based on tax positions related to current year | 4 | 2.7 |
Settlements | (0.1) | 0 |
Lapses in statutes of limitation | (9.7) | (9) |
Ending balance | $ 17.4 | $ 20.9 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Feb. 22, 2022 lawsuit | Jan. 28, 2023 USD ($) lawsuit | Jan. 28, 2023 USD ($) lawsuit | Mar. 10, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||
Letters of credit | $ 425 | $ 425 | ||
Number of class action lawsuits | lawsuit | 14 | |||
Pending Litigation | Dollar Tree | ||||
Loss Contingencies [Line Items] | ||||
Personal injury lawsuits | lawsuit | 6 | 7 | ||
Ocean Shipping Contracts | ||||
Loss Contingencies [Line Items] | ||||
Total commitment | $ 300.5 | $ 300.5 | ||
Software Licenses And Support, Telecommunication Services And Store Technology Assets And Maintenance | ||||
Loss Contingencies [Line Items] | ||||
Total commitment | 243.5 | 243.5 | ||
Software Agreements | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Total commitment | $ 105.4 | |||
Letters Of Credit For Routine Purchases Of Imported Merchandise | ||||
Loss Contingencies [Line Items] | ||||
Committed to letters of credit | 150.6 | 150.6 | ||
Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Surety bonds | $ 160.5 | $ 160.5 |
Long-Term Debt - Summary Of Lon
Long-Term Debt - Summary Of Long-term Debt (Details) - USD ($) | Jan. 28, 2023 | Jan. 29, 2022 | Dec. 08, 2021 | Dec. 01, 2021 | Apr. 19, 2018 |
Debt Instrument [Line Items] | |||||
Principal | $ 3,450,000,000 | $ 3,450,000,000 | |||
Unamortized Debt Discount and Issuance Costs | 28,400,000 | 33,000,000 | |||
Borrowing capacity | 425,000,000 | ||||
4.00% Senior Notes, due 2025 | |||||
Debt Instrument [Line Items] | |||||
Stated percentage | 4% | ||||
4.20% Senior Notes, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Stated percentage | 4.20% | ||||
Line of Credit | $1.5B Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Principal | 0 | 0 | |||
Unamortized Debt Discount and Issuance Costs | 5,100,000 | 6,400,000 | |||
Borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | |||
Interest rate at period end | 5.79% | ||||
Senior Notes | 4.00% Senior Notes, due 2025 | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | ||
Unamortized Debt Discount and Issuance Costs | $ 2,800,000 | 4,000,000 | |||
Stated percentage | 4% | 4% | |||
Senior Notes | 4.20% Senior Notes, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 1,250,000,000 | 1,250,000,000 | $ 1,250,000,000 | ||
Unamortized Debt Discount and Issuance Costs | $ 6,900,000 | 8,100,000 | |||
Stated percentage | 4.20% | 4.20% | |||
Senior Notes | 2.65% Senior Notes, due 2031 | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 800,000,000 | 800,000,000 | $ 800,000,000 | ||
Unamortized Debt Discount and Issuance Costs | $ 8,600,000 | 9,500,000 | |||
Stated percentage | 2.65% | 2.65% | |||
Senior Notes | 3.375% Senior Notes, due 2051 | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 400,000,000 | 400,000,000 | $ 400,000,000 | ||
Unamortized Debt Discount and Issuance Costs | $ 5,000,000 | $ 5,000,000 | |||
Stated percentage | 3.375% | 3.375% |
Long-Term Debt - Summary of Mat
Long-Term Debt - Summary of Maturities of Long-term Debt (Details) $ in Millions | Jan. 28, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 1,000 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 2,450 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 01, 2021 | Apr. 19, 2018 | Jan. 29, 2022 | Jan. 30, 2021 | May 02, 2020 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Dec. 08, 2021 | |
Debt Instrument [Line Items] | |||||||||
Borrowing capacity | $ 425,000,000 | ||||||||
Proceeds from revolving credit facility | 555,000,000 | $ 0 | $ 750,000,000 | ||||||
Principal amount of debt | $ 3,450,000,000 | 3,450,000,000 | 3,450,000,000 | ||||||
Redemption premium | 43,800,000 | ||||||||
Amortizable non-cash deferred financing costs | 2,700,000 | ||||||||
3.70% Senior Notes, Due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated percentage | 3.70% | ||||||||
4.00% Senior Notes, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated percentage | 4% | ||||||||
4.20% Senior Notes, due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated percentage | 4.20% | ||||||||
Line of Credit | $1.5B Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | |||||||
Letters of credit | $ 350,000,000 | ||||||||
Interest rate at period end | 5.79% | ||||||||
Principal amount of debt | 0 | $ 0 | 0 | ||||||
Line of Credit | $1.5B Revolving Credit Facility | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.125% | ||||||||
Senior Notes | Senior Floating Rate Notes Due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 750,000,000 | $ 750,000,000 | |||||||
Percentage of principal amount redeemed in event of change of control | 101% | ||||||||
Principal payments for long-term debt | $ 250,000,000 | ||||||||
Senior Notes | Senior Floating Rate Notes Due 2020 | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.70% | ||||||||
Senior Notes | Fixed Rate Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of principal amount redeemed | 100% | ||||||||
Senior Notes | 3.70% Senior Notes, Due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 1,000,000,000 | ||||||||
Stated percentage | 3.70% | ||||||||
Redemption of debt | 1,000,000,000 | ||||||||
Senior Notes | 4.00% Senior Notes, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | 1,000,000,000 | |||||
Stated percentage | 4% | 4% | |||||||
Senior Notes | 4.20% Senior Notes, due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 1,250,000,000 | 1,250,000,000 | $ 1,250,000,000 | 1,250,000,000 | |||||
Stated percentage | 4.20% | 4.20% | |||||||
Senior Notes | 2.65% Senior Notes, due 2031 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 800,000,000 | 800,000,000 | $ 800,000,000 | 800,000,000 | |||||
Stated percentage | 2.65% | 2.65% | |||||||
Percentage of principal amount redeemed | 100% | ||||||||
Percentage of principal amount redeemed in event of change of control | 101% | ||||||||
Senior Notes | 3.375% Senior Notes, due 2051 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||
Stated percentage | 3.375% | 3.375% | |||||||
Senior Notes | 5% Senior Notes Due February 1, 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated percentage | 5% | 5% | |||||||
Principal payments for long-term debt | $ 300,000,000 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 1,652.8 | $ 1,602.8 | $ 1,551.2 |
Variable lease cost | 428.8 | 417.8 | 391.4 |
Short-term lease cost | 10.8 | 5.6 | 9.7 |
Total lease cost | $ 2,092.4 | $ 2,026.2 | $ 1,952.3 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Jan. 28, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 1,657.7 |
2024 | 1,462.8 |
2025 | 1,232 |
2026 | 994 |
2027 | 733 |
Thereafter | 1,358.6 |
Total undiscounted lease payments | 7,438.1 |
Less interest | 733.2 |
Present value of lease liabilities | $ 6,704.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Millions, $ in Millions | 1 Months Ended | ||
May 31, 2017 ft² | Jan. 28, 2023 USD ($) option | Jan. 29, 2022 USD ($) | |
Leases [Abstract] | |||
Lease signed but not yet commenced | $ 502.3 | ||
Lessee, Lease, Description [Line Items] | |||
Area of leased property | ft² | 1.2 | ||
Property, plant and equipment | $ 4,972.2 | $ 4,477.3 | |
Number of lease extension options | option | 2 | ||
Renewal term | 10 years | ||
Warrensburg, Missouri | Buildings | |||
Lessee, Lease, Description [Line Items] | |||
Property, plant and equipment | $ 88.4 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Leases [Abstract] | |||
Weighted-average remaining lease term (years) | 5 years 8 months 12 days | 5 years 10 months 24 days | 6 years 1 month 6 days |
Weighted-average discount rate | 3.60% | 3.40% | 3.90% |
Operating cash flows from operating leases | $ 1,559.7 | $ 1,579.8 | $ 1,519.4 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - Fair value, inputs, level 1 - Senior Notes - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 3,162.8 | $ 3,558.5 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 3,426.7 | $ 3,423.4 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |||
Preferred Stock authorized to issue (in shares) | 10,000,000 | ||
Preferred Stock par value per share (usd per share) | $ 0.01 | ||
Preferred Stock, shares issued (in shares) | 0 | 0 | |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | |
Class of Stock [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,000,000 | ||
Payments for repurchase of common stock | $ 647.5 | $ 950 | $ 400 |
Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 4,600,000 | 9,200,000 | 4,000,000 |
Share Repurchase Programs | |||
Class of Stock [Line Items] | |||
Remaining amount authorized to be repurchased | $ 1,850 | ||
Share Repurchase Programs | Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 4,613,696 | 9,156,898 | 3,982,478 |
Payments for repurchase of common stock | $ 647.5 | $ 950 | $ 400 |
Shareholders' Equity - Basic an
Shareholders' Equity - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Basic net income per share: | |||
Net income | $ 1,615.4 | $ 1,327.9 | $ 1,341.9 |
Weighted average number of shares outstanding (in shares) | 223.2 | 227.9 | 236.4 |
Basic net income per share (usd per share) | $ 7.24 | $ 5.83 | $ 5.68 |
Diluted net income per share: | |||
Net income | $ 1,615.4 | $ 1,327.9 | $ 1,341.9 |
Weighted average number of shares outstanding (in shares) | 223.2 | 227.9 | 236.4 |
Dilutive effect of stock options and restricted stock (as determined by applying the treasury stock method) (in shares) | 0.9 | 1.1 | 0.9 |
Weighted average number of shares and dilutive potential shares outstanding (in shares) | 224.1 | 229 | 237.3 |
Diluted net income per share (usd per share) | $ 7.21 | $ 5.80 | $ 5.65 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 USD ($) year hour | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Age over which all employees have 401K benefits available | year | 18 | ||
Employee service years required for available 401K benefits (in years) | 1 year | ||
Minimum hours in a 401K qualifying one year period (in hours) | hour | 1,000 | ||
Plan expenses | $ 31.7 | $ 28.8 | $ 26.4 |
Cost of sales | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan expenses | 8.6 | 8.2 | 7.4 |
Selling, general and administrative expenses | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan expenses | $ 23.1 | $ 20.6 | $ 19 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 19, 2022 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jun. 10, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period (in shares) | 2,252,979 | ||||
Aggregate intrinsic value of options outstanding | $ 1.4 | ||||
Stock option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of recognition (in months) | 4 years 1 month 6 days | ||||
Intrinsic value of options exercised | $ 0.1 | $ 5.6 | $ 0.9 | ||
Unrecognized compensation expense | $ 112.1 | ||||
Stock option | Board of Directors Chairman | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 6 years 6 months | ||||
Grants in period (in shares) | 2,252,587 | ||||
Aggregate intrinsic value of options outstanding | $ 135.6 | ||||
Executive agreement term | 5 years | ||||
Term | 10 years | ||||
Vesting period | 5 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 3 years | ||||
Total fair value of vested instruments other than options | $ 51.5 | $ 56.8 | $ 48.5 | ||
Weighted average grant date fair value (dollars per share) | $ 158.05 | $ 109.01 | $ 73.24 | ||
Unrecognized compensation expense | $ 58 | ||||
Weighted average period of recognition (in months) | 1 year 2 months 12 days | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 3 years | ||||
Total fair value of vested instruments other than options | $ 44.5 | $ 17.3 | $ 19.6 | ||
Weighted average grant date fair value (dollars per share) | $ 159.57 | $ 95.04 | $ 74.46 | ||
Unrecognized compensation expense | $ 9.9 | ||||
Weighted average period of recognition (in months) | 10 months 24 days | ||||
2011 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 4,000,000 | ||||
2021 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 6,500,000 | ||||
Director Deferred Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of the share price of common stock used in the calculation to determine the number of options issued to a director (in hundredths) | 33% | ||||
Director Deferred Compensation Plan | Stock option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 10 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 110.4 | $ 79.9 | $ 83.9 |
Excess tax benefit (deficit) on stock-based compensation recognized in the Provision for income taxes | 9.8 | 8.5 | (2.8) |
Cost of sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 19.7 | 18.3 | 15.4 |
Selling, general and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 90.7 | $ 61.6 | $ 68.5 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted Stock Units (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Number of Shares | |||
Nonvested, beginning of period (shares) | 1,096,066 | ||
Granted (shares) | 468,929 | ||
Vested (shares) | (546,036) | ||
Forfeited (shares) | (150,239) | ||
Nonvested, end of period (shares) | 868,720 | 1,096,066 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, beginning of period (dollars per share) | $ 94.16 | ||
Granted (dollars per share) | 158.05 | $ 109.01 | $ 73.24 |
Vested (dollars per share) | 94.24 | ||
Forfeited (dollars per share) | 120.72 | ||
Nonvested, end of period (dollars per share) | $ 123.99 | $ 94.16 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Performance Stock Units (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Number of Shares | |||
Nonvested, beginning of period (shares) | 584,972 | ||
Granted (shares) | 206,044 | ||
Vested (shares) | (445,912) | ||
Forfeited (shares) | (190,281) | ||
Nonvested, end of period (shares) | 154,823 | 584,972 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, beginning of period (dollars per share) | $ 91.86 | ||
Granted (dollars per share) | 159.57 | $ 95.04 | $ 74.46 |
Vested (dollars per share) | 99.87 | ||
Forfeited (dollars per share) | 116.61 | ||
Nonvested, end of period (dollars per share) | $ 125.84 | $ 91.86 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Fair Value Assumptions (Details) - Stock option - Board of Directors Chairman | Mar. 19, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 6 months |
Expected stock price volatility | 34.10% |
Dividend yield | 0% |
Risk-free interest rate | 2.15% |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Stock Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jan. 28, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 24,541 |
Options granted (in shares) | shares | 2,252,979 |
Exercised (in shares) | shares | (583) |
Outstanding, ending balance (in shares) | shares | 2,276,937 |
Options vested and exercisable (in shares) | shares | 24,350 |
Weighted Average Per Share Exercise Price | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 90.38 |
Granted (dollars per share) | $ / shares | 157.17 |
Exercised (dollars per share) | $ / shares | 76.95 |
Outstanding, ending balance (dollars per share) | $ / shares | 156.46 |
Options vested and exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 90.92 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Term, Outstanding | 9 years 1 month 6 days |
Weighted Average Remaining Term, vested and exercisable | 3 years 9 months 18 days |
Aggregate intrinsic value of options outstanding | $ | $ 1.4 |
Aggregate intrinsic value, vested and expected to vest options | $ | $ 1.4 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue - Narrative (Details) | 12 Months Ended |
Jan. 28, 2023 segment state store province | |
Segment Reporting Information [Line Items] | |
Number of retail discount stores | store | 16,300 |
Number of states/provinces the Company operates in | state | 48 |
Number of reporting business segments | segment | 2 |
Canada | |
Segment Reporting Information [Line Items] | |
Number of states/provinces the Company operates in | province | 5 |
Segments and Disaggregated Re_4
Segments and Disaggregated Revenue - Information For Segments and Corporate and Support (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Condensed Consolidated Income Statement Data: | |||
Net sales | $ 28,318.2 | $ 26,309.8 | $ 25,508.4 |
Gross profit | 8,921.9 | 7,725.9 | 7,787.4 |
Operating income (loss) | 2,236.3 | 1,811.4 | 1,887.9 |
Interest expense, net | 125.3 | 178.9 | 147.3 |
Other expense, net | 0.4 | 0.3 | 0.8 |
Income before income taxes | 2,110.6 | 1,632.2 | 1,739.8 |
Depreciation and amortization expense: | 768 | 716 | 686.7 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 1,983.1 | 1,984.4 | |
Total assets: | 23,022.1 | 21,721.8 | |
Additions to property, plant and equipment: | 1,248.8 | 1,021.2 | 898.8 |
Corporate, support and Other | |||
Condensed Consolidated Income Statement Data: | |||
Operating income (loss) | (427.2) | (338.7) | (365.7) |
Depreciation and amortization expense: | 26.8 | 30.2 | 31.8 |
Condensed Consolidated Balance Sheet Data: | |||
Total assets: | 545.3 | 491.6 | |
Additions to property, plant and equipment: | 94.9 | 45.2 | |
Dollar Tree | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 15,405.7 | 13,922.1 | 13,265 |
Dollar Tree | Operating segments | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 15,405.7 | 13,922.1 | 13,265 |
Gross profit | 5,775.5 | 4,603.6 | 4,543.8 |
Operating income (loss) | 2,536 | 1,607 | 1,598 |
Depreciation and amortization expense: | 338.8 | 316 | 302.3 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 423.6 | 424.9 | |
Total assets: | 9,914.6 | 9,358.4 | |
Additions to property, plant and equipment: | 548.7 | 477.1 | |
Family Dollar | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 12,912.5 | 12,387.7 | 12,243.4 |
Family Dollar | Operating segments | |||
Condensed Consolidated Income Statement Data: | |||
Net sales | 12,912.5 | 12,387.7 | 12,243.4 |
Gross profit | 3,146.4 | 3,122.3 | 3,243.6 |
Operating income (loss) | 127.5 | 543.1 | 655.6 |
Depreciation and amortization expense: | 402.4 | 369.8 | $ 352.6 |
Condensed Consolidated Balance Sheet Data: | |||
Goodwill | 1,559.5 | 1,559.5 | |
Total assets: | 12,562.2 | 11,871.8 | |
Additions to property, plant and equipment: | $ 605.2 | $ 498.9 |
Segments and Disaggregated Re_5
Segments and Disaggregated Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 28,318.2 | $ 26,309.8 | $ 25,508.4 |
Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 15,405.7 | 13,922.1 | 13,265 |
Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 12,912.5 | $ 12,387.7 | $ 12,243.4 |
Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
Consumable | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 6,978.8 | $ 6,334.5 | $ 6,407 |
Consumable | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 10,036.2 | $ 9,446.5 | $ 9,367.8 |
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 45.30% | 45.50% | 48.30% |
Consumable | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 77.70% | 76.30% | 76.50% |
Variety | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 7,456.3 | $ 6,794 | $ 6,194.8 |
Variety | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 48.40% | 48.80% | 46.70% |
Seasonal | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 970.6 | $ 793.6 | $ 663.2 |
Seasonal | Product Concentration Risk | Revenue, Segment Benchmark | Dollar Tree | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 6.30% | 5.70% | 5% |
Home products | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 982.5 | $ 1,033.9 | $ 1,078.1 |
Home products | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 7.60% | 8.30% | 8.80% |
Apparel and accessories | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 732.2 | $ 781.5 | $ 690.1 |
Apparel and accessories | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 5.70% | 6.30% | 5.60% |
Seasonal and electronics | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 1,161.6 | $ 1,125.8 | $ 1,107.4 |
Seasonal and electronics | Product Concentration Risk | Revenue, Segment Benchmark | Family Dollar | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 9% | 9.10% | 9.10% |