What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2022-03-15 compared with 2021-03-16 · 4 added, 103 removed, 15 unchanged (88% of the section changed)

2 unchanged sentences

Issuer Purchases of Equity Securities

The following table presents our share repurchase activity during the fourth quarter of 2020:

Fiscal Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)

November 1, 2020 - November 28, 2020 — $ — — $ 600.0

November 29, 2020 - January 2, 2021 896,698 109.23 896,698 502.1

January 3, 2021 - January 30, 2021 931,476 109.56 931,476 400.0

Total 1,828,174 $ 109.40 1,828,174 $ 400.0

During fiscal 2020 and 2019, we repurchased 3,982,478 and 1,967,355 shares of common stock, respectively, on the open market at a total cost of $400.0 million and $200.0 million, respectively.

We did not repurchase any shares of common stock in fiscal 2018.

As of January 30, 2021, we had $400.0 million remaining under the Board repurchase authorization.

Subsequently, on March 2, 2021, the Board increased the share repurchase authorization by $2.0 billion resulting in a total share repurchase authorization of $2.4 billion.

During fiscal 2021, 2020 and 2019, we repurchased 9,156,898, 3,982,478 and 1,967,355 shares of common stock, respectively, on the open market at a total cost of $950.0 million, $400.0 million and $200.0 million, respectively.

The fiscal 2021 share repurchases occurred prior to the fourth quarter.

As of January 29, 2022, we had $2.5 billion remaining under Board repurchase authorization.

The repurchase authorization does not have an expiration date.

6 unchanged sentences

The stock price performance shown in the graph is not necessarily indicative of future price performance.

January 30, 2016 January 28, 2017 February 3, 2018 February 2, 2019 February 1, 2020 January 30, 2021

January 28, 2017 February 3, 2018 February 2, 2019 February 1, 2020 January 30, 2021 January 29, 2022

Dollar Tree, Inc.

2 unchanged sentences

S&P Retailing Index 100.00 148.34 159.89 190.43 278.09 296.49

Selected Financial Data

The following table presents a summary of our selected financial data for the fiscal years ended January 30, 2021, February 1, 2020, February 2, 2019, February 3, 2018, and January 28, 2017.

Fiscal 2017 included 53 weeks, commensurate with the retail calendar, while all other fiscal years reported in the table contain 52 weeks.

The selected statement of operations and balance sheet data have been derived from our consolidated financial statements that have been audited by our independent registered public accounting firm.

This information should be read in conjunction with the consolidated financial statements and related notes, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial information found elsewhere in this report.

Our net sales are derived from the sale of merchandise.

Two major factors tend to affect our net sales trends.

First is our success at opening new stores.

Second is the performance of stores once they are open.

Sales vary at our existing stores from one year to the next.

We refer to this as a change in comparable store net sales, because we include only those stores that are open throughout both of the periods being compared, beginning after the first fifteen months of operation.

We include sales from stores expanded or remodeled during the year in the calculation of comparable store net sales, which has the effect of increasing our comparable store net sales.

The term ‘expanded’ also includes stores that are relocated.

Stores that have been re-bannered are considered to be new stores and are not included in the calculation of the comparable store net sales change until after the first fifteen months of operation under the new brand.

We report our comparable store net sales on a constant currency basis.

Constant currency basis refers to the calculation excluding the impact of currency exchange rate fluctuations.

We calculated the constant currency basis increase by translating the current year’s comparable store net sales in Canada using the prior year’s currency exchange rates.

We believe that the constant currency basis provides a more accurate measure of comparable store net sales performance.

Both our Dollar Tree stores and our acquired Family Dollar stores are included in the comparable store net sales calculation for the years ended February 3, 2018 and forward.

For all prior years, only our Dollar Tree stores are included in the comparable store net sales calculation.

Net sales per selling square foot is calculated based on total net sales for the reporting period divided by the average selling square footage during the period.

Selling square footage excludes the storage, receiving and office space that generally occupies approximately 20% of the total square footage of our stores.

We believe that net sales per selling square foot more accurately depicts the productivity and operating performance of our stores as it isolates that portion of our footprint that is dedicated to selling merchandise.

Net sales per store and net sales per selling square foot are calculated for stores open throughout the period presented.

In the fourth quarter of 2019 and 2018, we recorded non-cash pre-tax and after-tax goodwill impairment charges related to our Family Dollar reporting unit of $313.0 million and $2.73 billion, respectively.

These impairment charges are reflected in “Selling, general and administrative expenses” in the accompanying consolidated statements of operations for the years ended February 1, 2020 and February 2, 2019.

As a result of these goodwill impairment charges, diluted earnings per share decreased by $1.31 and $11.46 per share for the years ended February 1, 2020 and February 2, 2019, respectively.

For additional information regarding the impairment of the Family Dollar goodwill, refer to Note 3 to our consolidated financial statements.

As a result of the enactment of the Tax Cuts and Jobs Act (“TCJA”) in 2017, net income and diluted net income per share for the year ended February 3, 2018 increased by $583.7 million and $2.45 per share, respectively.

Amounts in the following tables are in millions, except per share data, number of stores data, net sales per selling square foot data and inventory turns.

2021 February 1,

2020 February 2,

2019 February 3,

2018 January 28,

Statement of Operations Data:

Net sales $ 25,509.3 $ 23,610.8 $ 22,823.3 $ 22,245.5 $ 20,719.2

Gross profit 7,788.3 7,040.7 6,947.5 7,021.9 6,394.7

Selling, general and administrative expenses 5,900.4 5,778.5 7,887.0 5,022.8 4,689.9

Operating income (loss) 1,887.9 1,262.2 (939.5) 1,999.1 1,704.8

Net income (loss) 1,341.9 827.0 (1,590.8) 1,714.3 896.2

Margin Data (as a percentage of net sales):

Gross profit 30.5 % 29.8 % 30.4 % 31.6 % 30.8 %

Selling, general and administrative expenses 23.1 % 24.5 % 34.5 % 22.6 % 22.6 %

Operating income (loss) 7.4 % 5.3 % (4.1) % 9.0 % 8.2 %

2021 February 1,

2020 February 2,

2019 February 3,

2018 January 28,

Net income (loss) 5.3 % 3.5 % (7.0) % 7.7 % 4.3 %

Per Share Data:

Diluted net income (loss) per share $ 5.65 $ 3.47 $ (6.69) $ 7.21 $ 3.78

Diluted net income (loss) per share increase

(decrease) 62.8 % 151.9 % (192.8) % 90.7 % 200.0 %

2021 February 1,

2020 February 2,

2019 February 3,

2018 January 28,

Balance Sheet Data:

Cash and cash equivalents and short-term investments

$ 1,416.7 $ 539.2 $ 422.1 $ 1,097.8 $ 870.4

Working capital 1,320.5 722.9 2,197.6 1,717.2 1,832.1

Total assets 20,696.0 19,574.6 13,501.2 16,332.8 15,701.6

Total debt 3,250.0 3,800.0 4,300.0 5,732.7 6,391.8

Total operating lease liabilities 6,413.7 6,258.8 — — —

Shareholders’ equity 7,285.3 6,254.8 5,642.9 7,182.3 5,389.5

2021 February 1,

2020 February 2,

2019 February 3,

2018 January 28,

Selected Operating Data:

Number of stores open at end of period 15,685 15,288 15,237 14,835 14,334

Dollar Tree 7,805 7,505 7,001 6,650 6,360

Family Dollar 7,880 7,783 8,236 8,185 7,974

Gross square footage at end of period 154.5 149.8 148.3 143.9 138.8

Dollar Tree 84.0 80.6 75.4 71.6 68.5

Family Dollar 70.5 69.2 72.9 72.3 70.3

Selling square footage at end of period 125.1 121.3 120.1 116.6 112.4

Dollar Tree 67.4 64.6 60.3 57.3 54.7

Family Dollar 57.7 56.7 59.8 59.3 57.7

Selling square footage annual growth 3.1 % 1.0 % 3.0 % 3.7 % 3.7 %

Net sales annual growth 1

8.0 % 3.5 % 2.6 % 7.4 % 8.6 %

Comparable store net sales increase 1

6.1 % 1.8 % 1.7 % 1.9 % 1.8 %

Net sales per selling square foot $ 207 $ 196 $ 193 $ 194 $ 188

Net sales per store $ 1.6 $ 1.5 $ 1.5 $ 1.5 $ 1.5

Selected Financial Ratios:

Return on assets 6.7 % 5.0 % (10.7) % 10.7 % 5.7 %

Return on equity 19.8 % 13.9 % (24.8) % 27.3 % 18.3 %

Inventory turns 4.4 4.0 4.1 4.4 4.1

______________

1 Family Dollar was included in the determination of these items for the years ended February 3, 2018 and forward.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity