What changed in this filing

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Item 1. Financial Statements

2024-12-04 compared with 2024-09-04 · 50 added, 44 removed, 363 unchanged (21% of the section changed)

3 unchanged sentences

13 Weeks Ended 39 Weeks Ended

(in millions, except per share data) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

(in millions, except per share data) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Net sales $ 7,561.7 $ 7,309.1 $ 22,560.8 $ 21,948.7

5 unchanged sentences

Interest expense, net 27.5 30.4 80.8 80.5

Other (income) expense, net — ( 0.1 ) 0.1 —

Other expense, net 0.1 0.2 0.2 0.2

Income before income taxes 305.8 271.1 876.1 928.5

12 unchanged sentences

13 Weeks Ended 39 Weeks Ended

(in millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

(in millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Net income $ 233.3 $ 212.0 $ 665.8 $ 711.4

4 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except par value and share data) August 3, 2024 February 3, 2024 July 29, 2023

(in millions, except par value and share data) November 2, 2024 February 3, 2024 October 28, 2023

Current assets:

42 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

13 Weeks Ended August 3, 2024

13 Weeks Ended November 2, 2024

(in millions) Common

5 unchanged sentences

Earnings Shareholders'

Balance at May 4, 2024

Balance at August 3, 2024

215.0 $ 2.2 $ 22.2 $ ( 49.0 ) $ 7,404.1 $ 7,379.5

4 unchanged sentences

Stock-based compensation, net — — 26.5 — — 26.5

Repurchase of stock ( 0.8 ) — ( 5.9 ) — ( 84.1 ) ( 90.0 )

Excise tax on repurchases of stock

— — ( 0.8 ) — — ( 0.8 )

Balance at August 3, 2024

Balance at November 2, 2024

215.0 $ 2.2 $ 50.7 $ ( 54.2 ) $ 7,637.4 $ 7,636.1

26 Weeks Ended August 3, 2024

39 Weeks Ended November 2, 2024

(in millions) Common

16 unchanged sentences

— — ( 3.6 ) — ( 3.6 )

Balance at August 3, 2024

Balance at November 2, 2024

215.0 $ 2.2 $ 50.7 $ ( 54.2 ) $ 7,637.4 $ 7,636.1

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (cont.)

13 Weeks Ended July 29, 2023

13 Weeks Ended October 28, 2023

(in millions) Common

5 unchanged sentences

Earnings Shareholders'

Balance at April 29, 2023

Balance at July 29, 2023

219.9 $ 2.2 $ 446.5 $ ( 40.1 ) $ 8,622.4 $ 9,031.0

Net income — — — — 212.0 212.0

Total other comprehensive income — — — 3.9 — 3.9

Total other comprehensive loss — — — ( 6.9 ) — ( 6.9 )

Issuance of stock under Employee Stock

4 unchanged sentences

— — ( 2.3 ) — — ( 2.3 )

Balance at July 29, 2023

Balance at October 28, 2023

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

26 Weeks Ended July 29, 2023

39 Weeks Ended October 28, 2023

(in millions) Common

8 unchanged sentences

Net income — — — — 711.4 711.4

Total other comprehensive income — — — 1.1 — 1.1

Total other comprehensive loss — — — ( 5.8 ) — ( 5.8 )

Issuance of stock under Employee Stock

5 unchanged sentences

— — ( 4.3 ) — — ( 4.3 )

Balance at July 29, 2023

Balance at October 28, 2023

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

3 unchanged sentences

39 Weeks Ended

(in millions) August 3, 2024 July 29, 2023

(in millions) November 2, 2024 October 28, 2023

Cash flows from operating activities:

23 unchanged sentences

Cash flows from financing activities:

Net proceeds from commercial paper notes 249.7 —

Proceeds from commercial paper notes 3,206.1 948.0

Repayments of commercial paper notes ( 3,206.1 ) ( 718.9 )

Proceeds from stock issued pursuant to stock-based compensation plans 7.7 7.6

3 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 0.7 ) ( 1.1 )

Net decrease in cash, cash equivalents and restricted cash ( 112.8 ) ( 128.5 )

Net increase (decrease) in cash, cash equivalents and restricted cash 15.5 ( 195.7 )

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

19 unchanged sentences

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

The results of operations for the 13 and 26 weeks ended August 3, 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 August 3, 2024 and July 29, 2023 and the results of our operations and cash flows for the periods presented.

The results of operations for the 13 and 39 weeks ended November 2, 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 November 2, 2024 and October 28, 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.

1 unchanged sentence

All amounts stated herein are in U.S.

Certain prior year amounts have been reclassified to conform with the current year presentation, including proceeds from and repayments of commercial paper notes in the accompanying unaudited Condensed Consolidated Statements of Cash Flows.

Note 2 - Recent Accounting Pronouncements

9 unchanged sentences

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.

We expect ASU 2023-07 to impact only our disclosures with no impact to our consolidated financial condition, results of operations, or cash flows.

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

3 unchanged sentences

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

In November 2024, the FASB issued ASU 2024-03 “Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses” (“ASU 2024-03”) which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions.

ASU 2024-03 is effective on a prospective basis for annual periods beginning in fiscal 2027 and for interim periods beginning in fiscal 2028, with retrospective application permitted.

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

Note 3 - Contingencies

3 unchanged sentences

These losses were fully offset by insurance receivables.

As of August 3, 2024, we have received insurance proceeds totaling $ 70.8 million, including $ 45.0 million related to damaged inventory and $ 25.8 million related to damaged property and equipment.

As of November 2, 2024, we have received insurance proceeds totaling $ 90.0 million, including $ 45.0 million related to damaged inventory and $ 45.0 million related to damaged property and equipment.

We expect that the remaining inventory losses and property and equipment losses will be fully offset by insurance recoveries under our distribution center insurance policies.

22 unchanged sentences

Talc Product Matters

Multiple personal injury lawsuits are pending in state court in Illinois, New York, Texas, and New Jersey against Dollar Tree, Family Dollar or both alleging that certain talc products that we sold caused cancer.

Multiple personal injury lawsuits are pending in state court in California, Illinois, Louisiana, New York, 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.

3 unchanged sentences

Acetaminophen Matters

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.

Beginning in 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.

7 unchanged sentences

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

As of August 3, 2024, $ 250.0 million principal amount of notes were outstanding under our commercial paper program, with a weighted-average interest rate of 5.5 %.

There were no short-term borrowings outstanding at February 3, 2024 or July 29, 2023.

We issued and repaid $ 3.2 billion of commercial paper notes during the 39 weeks ended November 2, 2024 and incurred interest expense of $ 3.9 million related to these notes.

As of November 2, 2024, there were no commercial paper notes outstanding.

As of October 28, 2023, we had $ 230.0 million principal amount of commercial paper notes outstanding with a weighted-average interest rate of 5.6 %.

There were no short-term borrowings outstanding at February 3, 2024.

Note 5 - 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 26 weeks ended August 3, 2024 or July 29, 2023.

We did not record any material impairment charges during the 13 or 39 weeks ended November 2, 2024 or October 28, 2023.

Fair Value of Financial Instruments

2 unchanged sentences

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

August 3, 2024 February 3, 2024 July 29, 2023

November 2, 2024 February 3, 2024 October 28, 2023

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

4 unchanged sentences

13 Weeks Ended 39 Weeks Ended

(in millions, except per share data) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

(in millions, except per share data) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Basic net income per share:

11 unchanged sentences

Diluted net income per share $ 1.08 $ 0.97 $ 3.08 $ 3.23

Share-based awards of 3.4 million shares and 3.1 million shares were excluded from the calculation of diluted net income per share for the 13 and 26 weeks ended August 3, 2024, respectively, because their inclusion would be anti-dilutive.

Share-based awards of 2.4 million shares and 3.0 million shares were excluded from the calculation of diluted net income per share for the 13 and 26 weeks ended July 29, 2023, respectively, because their inclusion would be anti-dilutive.

Share-based awards of 3.4 million shares and 3.1 million shares were excluded from the calculation of diluted net income per share for the 13 and 39 weeks ended November 2, 2024, respectively, because their inclusion would be anti-dilutive.

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.

Note 7 - Shareholders’ Equity

We repurchased 746,535 and 3,283,837 shares of common stock on the open market at a cost of $ 90.8 million and $ 403.6 million, including applicable excise tax, during the 13 and 26 weeks ended August 3, 2024, respectively.

We repurchased 703,713 and 1,728,713 shares of common stock on the open market at a cost of $ 99.9 million and $ 252.0 million, including applicable excise tax, during the 13 and 26 weeks ended July 29, 2023, respectively.

At August 3, 2024, we had $ 952.4 million remaining under our existing $ 2.5 billion Board repurchase authorization.

We repurchased 3,283,837 shares of common stock on the open market at a cost of $ 403.6 million, including applicable excise tax, during the 39 weeks ended November 2, 2024.

We did not repurchase any shares of common stock during the 13 weeks ended November 2, 2024.

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.

At November 2, 2024, we had $ 952.4 million remaining under our existing $ 2.5 billion Board repurchase authorization.

Note 8 - Segments and Disaggregated Revenue

17 unchanged sentences

13 Weeks Ended 39 Weeks Ended

(in millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

(in millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023

Condensed Consolidated Income Statement Data (Unaudited):

16 unchanged sentences

Interest expense, net 27.5 30.4 80.8 80.5

Other (income) expense, net

— ( 0.1 ) 0.1 —

Other expense, net 0.1 0.2 0.2 0.2

Income before income taxes $ 305.8 $ 271.1 $ 876.1 $ 928.5

(in millions) August 3, 2024 February 3, 2024 July 29, 2023

(in millions) November 2, 2024 February 3, 2024 October 28, 2023

Condensed Consolidated Balance Sheet Data (Unaudited):

13 unchanged sentences

13 Weeks Ended 39 Weeks Ended

(in millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

(in millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 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.

Our outstanding payment obligations under this program were $ 145.2 million and $ 11.8 million as of August 3, 2024 and February 3, 2024, respectively.

Our outstanding payment obligations under this program were $ 460.5 million and $ 11.8 million as of November 2, 2024 and February 3, 2024, respectively.

We had no outstanding payment obligations under the program as of October 28, 2023.

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