What changed in this filing

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Item 1. Financial Statements

2024-06-05 compared with 2023-11-29 · 82 added, 131 removed, 278 unchanged (43% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED INCOME STATEMENTS

13 Weeks Ended 39 Weeks Ended

(in millions, except per share data) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

13 Weeks Ended

(in millions, except per share data) May 4, 2024 April 29, 2023

Net sales $ 7,626.4 $ 7,319.5

6 unchanged sentences

Other expense, net

0.2 0.2 0.2 0.3

Income before income taxes 396.1 393.7

6 unchanged sentences

Weighted average common shares outstanding:

218.9 222.2 220.0 223.9

219.2 223.0 220.5 224.8

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

13 Weeks Ended 39 Weeks Ended

(in millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

13 Weeks Ended

(in millions) May 4, 2024 April 29, 2023

Net income $ 300.1 $ 299.0

4 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions) October 28, 2023 January 28, 2023 October 29, 2022

(in millions) May 4, 2024 February 3, 2024 April 29, 2023

Current assets:

15 unchanged sentences

Current liabilities:

Short-term borrowings $ 229.6 $ — $ 350.0

Current portion of operating lease liabilities $ 1,509.6 $ 1,513.0 $ 1,456.9

23 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

13 Weeks Ended October 28, 2023

13 Weeks Ended May 4, 2024

(in millions) Common

5 unchanged sentences

Earnings Shareholders'

Balance at July 29, 2023

Balance at February 3, 2024

217.9 $ 2.2 $ 229.9 $ ( 43.6 ) $ 7,124.6 $ 7,313.1

3 unchanged sentences

Purchase Plan — — 3.8 — — 3.8

Exercise of stock options — — 0.1 — — 0.1

Stock-based compensation, net 0.3 — 10.1 — — 10.1

2 unchanged sentences

— — ( 2.8 ) — — ( 2.8 )

Balance at October 28, 2023

Balance at May 4, 2024

215.7 $ 2.2 $ — $ ( 45.6 ) $ 7,355.8 $ 7,312.4

39 Weeks Ended October 28, 2023

13 Weeks Ended April 29, 2023

(in millions) Common

16 unchanged sentences

— — ( 1.0 ) — — ( 1.0 )

Balance at October 28, 2023

217.9 $ 2.2 $ 208.6 $ ( 47.0 ) $ 8,834.4 $ 8,998.2

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

DOLLAR TREE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (cont.)

13 Weeks Ended October 29, 2022

(in millions) Common

Shares Common

Stock Additional

Capital Accumulated

Comprehensive

Loss Retained

Earnings Shareholders'

Balance at July 30, 2022

223.9 $ 2.2 $ 1,026.7 $ ( 36.3 ) $ 7,403.9 $ 8,396.5

Net income — — — — 266.9 266.9

Total other comprehensive loss — — — ( 8.3 ) — ( 8.3 )

Issuance of stock under Employee Stock

Purchase Plan 0.1 — 2.3 — — 2.3

Stock-based compensation, net — — 15.4 — — 15.4

Repurchase of stock ( 2.8 ) — ( 397.5 ) — — ( 397.5 )

Balance at October 29, 2022

221.2 $ 2.2 $ 646.9 $ ( 44.6 ) $ 7,670.8 $ 8,275.3

39 Weeks Ended October 29, 2022

(in millions) Common

Shares Common

Stock Additional

Capital Accumulated

Comprehensive

Loss Retained

Earnings Shareholders'

Balance at January 29, 2022

225.1 $ 2.2 $ 1,243.9 $ ( 35.2 ) $ 6,507.6 $ 7,718.5

Net income — — — — 1,163.2 1,163.2

Total other comprehensive loss — — — ( 9.4 ) — ( 9.4 )

Issuance of stock under Employee Stock

Purchase Plan 0.1 — 7.1 — — 7.1

Stock-based compensation, net 0.6 — 43.4 — — 43.4

Repurchase of stock ( 4.6 ) — ( 647.5 ) — — ( 647.5 )

Balance at October 29, 2022

Balance at April 29, 2023

220.6 $ 2.2 $ 519.5 $ ( 44.0 ) $ 8,422.0 $ 8,899.7

3 unchanged sentences

13 Weeks Ended

(in millions) October 28, 2023 October 29, 2022

(in millions) May 4, 2024 April 29, 2023

Cash flows from operating activities:

4 unchanged sentences

Stock-based compensation expense 29.6 28.3

Amortization of debt discount and debt-issuance costs 4.0 3.4

Impairments — 0.8

Other non-cash adjustments to net income 2.5 35.5

1 unchanged sentence

Merchandise inventories 32.4 335.9

Income taxes receivable ( 45.6 ) ( 50.4 )

Other current assets ( 2.8 ) ( 7.9 )

11 unchanged sentences

Cash flows from financing activities:

Proceeds from revolving credit facility — 440.0

Repayments of revolving credit facility — ( 90.0 )

Net proceeds from commercial paper notes 229.1 —

Proceeds from stock issued pursuant to stock-based compensation plans 3.9 2.9

3 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 0.4 ) ( 1.0 )

Net decrease in cash, cash equivalents and restricted cash ( 195.7 ) ( 531.4 )

Net increase (decrease) in cash, cash equivalents and restricted cash ( 65.5 ) 230.7

Cash, cash equivalents and restricted cash at beginning of period 757.2 711.3

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Accrued capital expenditures $ 103.9 $ 68.6

Losses on property, plant and equipment recorded in insurance receivables

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023 filed with the U.S.

Securities and Exchange Commission (“SEC”) on March 20, 2024.

The results of operations for the 13 and 39 weeks ended October 28, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 3, 2024.

In our opinion, the unaudited condensed consolidated financial statements included herein contain all adjustments (including those of a normal recurring nature) considered necessary for a fair presentation of our financial position as of October 28, 2023 and October 29, 2022 and the results of our operations and cash flows for the periods presented.

The January 28, 2023 balance sheet information was derived from the audited consolidated financial statements as of that date.

The results of operations for the 13 weeks ended May 4, 2024 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 1, 2025.

In our opinion, the unaudited condensed consolidated financial statements included herein contain all adjustments (including those of a normal recurring nature) considered necessary for a fair presentation of our financial position as of May 4, 2024 and April 29, 2023 and the results of our operations and cash flows for the periods presented.

The February 3, 2024 balance sheet information was derived from the audited consolidated financial statements as of that date.

All intercompany balances and transactions have been eliminated in consolidation.

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Note 2 - Recent Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-04 "Liabilities - Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") which requires entities to disclose the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about their obligations under these programs, including a rollforward of those obligations.

We adopted ASU 2022-04 for the fiscal year 2023 on a retrospective basis, except for the amendments relating to the rollforward requirement, which are required to be adopted for the fiscal year 2024 on a prospective basis.

The adoption did not have a material impact on our unaudited condensed consolidated financial statements.

Refer to Note 9 to the unaudited condensed consolidated financial statements for a discussion of our supply chain finance program.

Recently Adopted Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04 "Liabilities - Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") which requires entities to disclose the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about their obligations under these programs, including a rollforward of those obligations.

We adopted ASU 2022-04 in fiscal 2023 on a retrospective basis, except for the amendments relating to the rollforward requirement, which are effective on a prospective basis beginning in fiscal 2024 within the Annual Report on Form 10-K.

Refer to Note 8 for a discussion of our supply chain finance program.

Recently Issued Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which requires disclosure of incremental segment information on an annual and interim basis, including enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss.

ASU 2023-07 also requires entities to disclose the title and position of the CODM and explain how the CODM uses the reported measures of segment profit or loss in assessing performance and allocating resources.

Further, it requires that all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 be provided in interim periods.

ASU 2023-07 is effective on a retrospective basis for annual periods beginning in fiscal 2024 and for interim periods beginning in fiscal 2025.

We are currently evaluating the impact of this standard to our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” (“ASU 2023-09”) which requires entities to disclose specific categories and greater disaggregation of information in the effective tax rate reconciliation, as well as disaggregated disclosure of income taxes paid, pretax income and income tax expense by jurisdiction.

The standard also removes certain disclosure requirements that currently exist under Topic 740.

ASU 2023-09 is effective on a prospective basis for annual periods beginning in fiscal 2025, with retrospective application permitted.

We are currently evaluating the impact of this standard to our consolidated financial statements.

Note 3 - Contingencies

On April 28, 2024, a tornado destroyed our Dollar Tree distribution center in Marietta, Oklahoma.

Based on the significant damage sustained by the facility, the inventory contained in the facility and the facility itself are not salvageable.

We incurred losses totaling $ 117.0 million as of May 4, 2024, consisting of $ 70.0 million related to damaged inventory and $ 47.0 million related to property and equipment.

Our distribution center insurance policies include significant property and inventory coverage and we believe the aforementioned, incurred losses will be fully offset by insurance recoveries.

As the insurance receivables recorded fully offset the losses incurred, there was no net impact to the accompanying unaudited Condensed Consolidated Income Statements for the 13 weeks ended May 4, 2024.

Expected insurance recoveries for business interruption and redevelopment costs greater than the losses recognized cannot be estimated at this time.

The foregoing losses and expected insurance recoveries are based on information currently available to us.

We continue to assess these estimates and will recognize any changes to these estimates in the period(s) in which they are determined.

The final losses, insurance recoveries and net charges could vary from these estimates.

Legal Proceedings

We are defendants in ordinary, routine litigation or proceedings incidental to our business, including employment-related matters;

16 unchanged sentences

DC 202-Related Matters

On February 11, 2022, the U.S.

Food and Drug Administration (“FDA”) issued Form 483 observations primarily regarding rodent infestation at Family Dollar’s West Memphis, Arkansas distribution center (“DC 202”) and the related sale and distribution of adulterated product, as well as other processes and procedures that required remediation.

In connection therewith, we initiated a retail-level product recall of FDA and U.S.

Department of Agriculture-regulated products stored and shipped from DC 202 from January 1, 2021 through February 18, 2022 (the “Recall”), temporarily closed DC 202 for extensive cleaning, temporarily closed the affected

stores to permit the removal and destruction of inventory subject to the Recall, ceased sales of relevant inventory subject to the Recall, ceased the direct shipment of FDA-regulated products from DC 202, and initiated corrective actions.

In June 2022, we stopped shipping to stores from DC 202 and have since disposed of all of the subject inventory that was in the facility.

Since February 22, 2022, we have 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, seek class action status, and allege violations of the Mississippi, Arkansas, Louisiana, Tennessee, Alabama and Missouri consumer protection laws, breach of warranty, negligence, misrepresentation, deception and unjust enrichment related to the sale of products that may be contaminated by virtue of rodent infestation and other unsanitary conditions at DC 202.

Plaintiffs sought damages, attorney fees and costs, punitive damages and replacement or refund of money paid to purchase the relevant products, and any other legal relief available for their claims (in each case in unspecified amounts), including equitable and injunctive relief.

As a result of a mediation held in April 2023, the parties reached a claims made settlement whereby one class member per household will receive a $ 25 Family Dollar gift certificate.

On October 27, 2023, the court granted preliminary approval of the settlement.

Notice of the settlement and how to submit a claim was given beginning November 10, 2023.

A hearing on final approval of the settlement has been scheduled for April 5, 2024.

On March 1, 2022, a federal grand jury subpoena was issued to us by the Eastern District of Arkansas requesting the production of information, documents and records pertaining to pests, sanitation and compliance with law regarding certain of our procedures and products.

In connection with this matter, we have been investigating the condition of FDA-regulated product shipped from DC 202.

We are cooperating fully with the U.S.

Department of Justice (“DOJ”) investigation, including having produced documents and provided additional information.

We are currently engaged 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, but we acknowledge that any negotiated resolution will 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 at DC 202.

The State of Arkansas is seeking injunctive relief, restitution, disgorgement, damages, civil penalties, punitive damages and suspension or revocation of our authorization to do business in Arkansas.

We filed a motion to dismiss the State's claims, and it is too early to determine a likely outcome in the matter.

Based on the developments discussed above, we determined that there is a probable risk of liability for settlement amounts, costs, and potential penalties and, accordingly, we previously accrued $ 30.0 million for DC 202-related matters.

At the present time, we are unable to estimate the amount of additional incremental loss, if any, which may result when all of the matters are finally resolved.

Based on the information available to date, we do not believe the resolution of the DOJ investigation, the State of Arkansas complaint, or settlement of any pending or potential civil litigation related to DC 202 will have a material adverse effect on our business, financial condition, or liquidity.

As previously reported by the company on its Current Report on Form 8-K filed February 26, 2024, Family Dollar Stores, LLC (“Family Dollar”), a wholly-owned subsidiary of the company, entered into a Plea Agreement (the “Plea Agreement”) resolving the U.S.

Department of Justice (“DOJ”) investigation regarding rodent infestation at Family Dollar’s West Memphis, Arkansas distribution center (“DC 202”) and the related distribution of adulterated product.

Subject to the terms and conditions of the Plea Agreement, Family Dollar pled guilty to a one count misdemeanor violation of the Food, Drug and Cosmetics Act for causing FDA-regulated products to become adulterated while such articles were held in DC 202.

Under the Plea Agreement, Family Dollar agreed to pay $ 200,000 in fines and a forfeiture money judgment in the amount of $ 41,475,000 , which relates to the value of the adulterated FDA-regulated products that were held in DC 202.

The Plea Agreement was approved by the United States District Court for the Eastern District of Arkansas at a hearing on February 26, 2024.

No criminal charges were brought against Dollar Tree in connection with this matter.

As part of the Plea Agreement, Dollar Tree and Family Dollar agreed to certain terms relating to its compliance program including submitting certain reports to the DOJ for a three-year term.

The company previously reported a preliminary settlement of a multi-district litigation proceeding in federal court in Tennessee covering 14 putative class actions filed against us primarily related to issues associated with DC 202 described above.

The claims made settlement, which received preliminary approval from the court in October 2023, provided that one class member per household may receive a $ 25 Family Dollar gift certificate.

The period for filing a claim, opting out of the settlement or filing an objection to the settlement ended on January 9, 2024, and on April 5, 2024, the court granted final approval on the settlement.

A lawsuit brought by the Attorney General for the State of Arkansas related to the sale of products from DC 202 remains pending, and the court is expected to hold a hearing on our motion to dismiss the State's claims on July 2, 2024.

As previously disclosed, we recorded charges of $ 56.7 million in fiscal 2023 with respect to DC 202-related matters which included the final resolution of the DOJ investigation and the now-approved settlement of the 14 putative consumer class actions.

At the present time, we are unable to estimate the amount of additional incremental loss, if any, which may result when the State of Arkansas complaint is finally resolved, but we do not believe it will have a material adverse effect on our business, financial condition, or liquidity.

Talc Product Matters

5 unchanged sentences

Acetaminophen Matters

Since August 2022, personal injury cases have been filed in federal court 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.

There are currently dozens of cases pending.

Since August 2022, more than 50 personal injury cases have been filed in federal court 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, which originated in Alabama, California, Florida, Georgia, Louisiana, Minnesota, Missouri, North Carolina, Kentucky, Tennessee and Texas, along with other cases against many other defendants, have been consolidated in multi-district court litigation in the Southern District of New York.

Note 4 - Short-Term Borrowings and Long-Term Debt

Commercial Paper Program

In July 2023, we established a commercial paper program to issue unsecured commercial paper notes with maturities up to 397 days from the date of issue, up to a maximum aggregate face or principal amount outstanding at any time of $ 1.5 billion.

We expect to use the net proceeds of note issuances for general corporate purposes.

Our Revolving Credit Facility will serve as a liquidity backstop for the repayment of notes outstanding under the program.

The notes rank pari passu with all of our other unsecured and unsubordinated indebtedness.

As of October 28, 2023, $ 230.0 million principal amount of notes were outstanding under the program, with a weighted-average interest rate of 5.6 %.

Revolving Credit Facility

The following table summarizes information pertaining to our revolving credit facilities:

(in millions) October 28, 2023 January 28, 2023 October 29, 2022

Revolving Credit Facility Capacity $ 1,500.0 $ 1,500.0 $ 1,500.0

Loans Outstanding — — 350.0

Standby Letters of Credit Outstanding 4.1 4.4 44.3

Available Capacity 1,495.9 1,495.6 1,105.7

The weighted-average interest rate for the $ 350.0 million of loans outstanding at October 29, 2022 was 4.69 %.

These cases, which originated in Alabama, California, Florida, Georgia, Louisiana, Minnesota, Missouri, North Carolina, Kentucky, Tennessee and Texas, along with other cases against many other defendants, were consolidated into multi-district court litigation in the Southern District of New York.

The court disqualified plaintiffs’ experts and, on that basis dismissed all the cases which had been filed at the time of that decision, including all cases currently filed against us.

The dismissal has been appealed to the Second Circuit by plaintiffs.

Note 4 - Fair Value Measurements

4 unchanged sentences

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 did not record any material impairment charges during the 13 or 39 weeks ended October 28, 2023 or October 29, 2022.

We did not record any material impairment charges during the 13 weeks ended May 4, 2024 or April 29, 2023.

Fair Value of Financial Instruments

2 unchanged sentences

The aggregate fair values and carrying values of our long-term borrowings were as follows:

October 28, 2023 January 28, 2023 October 29, 2022

May 4, 2024 February 3, 2024 April 29, 2023

(in millions) Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value

3 unchanged sentences

The following table sets forth the calculations of basic and diluted net income per share:

13 Weeks Ended 39 Weeks Ended

(in millions, except per share data) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

13 Weeks Ended

(in millions, except per share data) May 4, 2024 April 29, 2023

Basic net income per share:

7 unchanged sentences

applying the treasury stock method)

0.3 0.8 0.5 0.9

Weighted average number of shares and dilutive potential

1 unchanged sentence

Diluted net income per share $ 1.38 $ 1.35

Share-based awards of 3.0 million shares and 3.2 million shares were excluded from the calculation of diluted net income per share for the 13 and 39 weeks ended October 28, 2023, respectively, because their inclusion would be anti-dilutive.

Share-based awards of 2.3 million shares and 3.0 million shares were excluded from the calculation of diluted net income per share for the 13 and 39 weeks ended October 29, 2022, respectively, because their inclusion would be anti-dilutive.

Share-based awards of 3.1 million shares and 2.9 million shares were excluded from the calculation of diluted net income per share for the 13 weeks ended May 4, 2024 and April 29, 2023, respectively, because their inclusion would be anti-dilutive.

Note 6 - Shareholders’ Equity

We repurchased 2,176,886 and 3,905,599 shares of common stock on the open market at a cost of $ 252.3 million and $ 504.3 million, including applicable excise tax, during the 13 and 39 weeks ended October 28, 2023, respectively.

We repurchased 2,859,200 and 4,613,696 shares of common stock on the open market at a cost of $ 397.5 million and $ 647.5 million during the 13 and 39 weeks ended October 29, 2022, respectively.

At October 28, 2023, we had $ 1.35 billion remaining under our Board repurchase authorization.

We repurchased 2,537,302 and 1,025,000 shares of common stock on the open market at a cost of $ 312.8 million and $ 152.1 million, including applicable excise tax, during the 13 weeks ended May 4, 2024 and April 29, 2023, respectively.

Of the shares repurchased during the 13 weeks ended May 4, 2024 and April 29, 2023, $ 37.8 million and $ 7.7 million, respectively, settled subsequent to May 4, 2024 and April 29, 2023, respectively, and these amounts were accrued in the accompanying unaudited Condensed Consolidated Balance Sheets.

At May 4, 2024, we had $ 1.04 billion remaining under our existing $ 2.5 billion Board repurchase authorization.

Note 7 - Segments and Disaggregated Revenue

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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 , with additional offerings at $ 3 , $ 4 and $ 5 price points.

We define our segments as those operations whose results our 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 opening price point of $ 1.25 , with additional offerings at $ 3 , $ 4 and $ 5 price points.

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.

1 unchanged sentence

The Family Dollar segment consists of our operations under the “Family Dollar” brand and ten distribution centers.

The Family Dollar segment operating income (loss) includes advertising revenue, which is a component of other revenue in the accompanying unaudited condensed consolidated income statements.

The Family Dollar segment operating income includes advertising revenue, which is a component of “Other revenue” in the accompanying unaudited Condensed Consolidated Income Statements.

We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income.

4 unchanged sentences

Information for our segments, as well as for corporate, support and other, including the reconciliation to income before income taxes, is as follows:

13 Weeks Ended 39 Weeks Ended

(in millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

13 Weeks Ended

(in millions) May 4, 2024 April 29, 2023

Condensed Consolidated Income Statement Data (Unaudited):

14 unchanged sentences

Consolidated operating income

301.7 381.3 1,009.2 1,618.2

Interest expense, net 24.4 25.9

1 unchanged sentence

Income before income taxes $ 396.1 $ 393.7

(in millions) October 28, 2023 January 28, 2023 October 29, 2022

(in millions) May 4, 2024 February 3, 2024 April 29, 2023

Condensed Consolidated Balance Sheet Data (Unaudited):

12 unchanged sentences

The following table summarizes net sales by merchandise category for our segments:

13 Weeks Ended 39 Weeks Ended

(in millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

13 Weeks Ended

(in millions) May 4, 2024 April 29, 2023

Dollar Tree segment net sales by

16 unchanged sentences

As such, the outstanding payment obligations under our supply chain financing program are included within “Accounts payable” in the accompanying unaudited Condensed Consolidated Balance Sheets and within “Cash flows from operating activities” in the accompanying unaudited Condensed Consolidated Statements of Cash Flows.

As of October 28, 2023, we had no outstanding payment obligations under this program.

Our outstanding payment obligations under this program were $ 60.4 million and $ 11.8 million as of May 4, 2024 and February 3, 2024, respectively.

Note 9 - Subsequent Events

Subsequent to the quarter ended May 4, 2024, we announced that we had initiated a formal review of strategic alternatives for the Family Dollar business segment, which could include among others, a potential sale, spin-off or other disposition of the business.

There is not a set deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any transaction or particular outcome.

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-Q

Item 1. Financial Statements