Dollar Tree 2008 Annual Report Download - page 16

14 DOLLAR TREE, INC. • 2008 ANNUAL REPORT
Management’s Discussion & Analysis of Financial Condition and Results of Operations
• why those net sales, earnings, gross margins and
costs were different from the year before;
• how all of this affects our overall financial
condition;
• what our expenditures for capital projects were in
2008 and 2007 and what we expect them to be
in 2009; and
• where funds will come from to pay for future
expenditures.
As you read Management’s Discussion and
Analysis, please refer to our consolidated financial
statements, included in this Annual Report, which
present the results of operations for the fiscal years
ended January 31, 2009, February 2, 2008 and
February 3, 2007. In Management’s Discussion and
Analysis, we analyze and explain the annual changes in
some specific line items in the consolidated financial
statements for the fiscal year 2008 compared to the
comparable fiscal year 2007 and the fiscal year 2007
compared to the comparable fiscal year 2006.
Key Events and Recent Developments
Several key events have had or are expected to have a
significant effect on our operations. You should keep
in mind that:
• On February 20, 2008, we entered into a five-year
$550.0 million unsecured Credit Agreement
(the Agreement). The Agreement provides for a
$300.0 million revolving line of credit, including
up to $150.0 million in available letters of credit,
and a $250.0 million term loan. The interest rate
on the facility is based, at our option, on a LIBOR
rate, plus a margin, or an alternate base rate, plus
a margin. Our March 2004, $450.0
million unsecured revolving credit facility was
terminated concurrent with entering into the
Agreement.
• On March 2, 2008, we reorganized by creating a
new holding company structure. The new parent
company is Dollar Tree, Inc., replacing Dollar Tree
Stores, Inc., which is now an operating subsidiary.
• On March 20, 2008, we entered into two $75.0
million interest rate swap agreements. These inter-
est rate swaps are used to manage the risk associ-
ated with interest rate fluctuations on a portion of
our $250.0 million variable rate term loan.
the date of this annual report and you should not
expect us to do so.
Investors should also be aware that while we do,
from time to time, communicate with securities ana-
lysts and others, we do not, by policy, selectively dis-
close to them any material, nonpublic information or
other confidential commercial information. Accordingly,
shareholders should not assume that we agree with
any statement or report issued by any securities analyst
regardless of the content of the statement or report.
We do not issue detailed financial forecasts or projec-
tions and we do not, by policy, confirm those issued
by others. Thus, to the extent that reports issued by
securities analysts contain any projections, forecasts or
opinions, such reports are not our responsibility.
INTRODUCTORY NOTE: Unless otherwise stated,
references to “we,” “our” and “Dollar Tree” generally refer
to Dollar Tree, Inc. and its direct and indirect subsidiaries
on a consolidated basis. Unless specifically indicated oth-
erwise, any references to “2009” or “fiscal 2009”, “2008”
or “fiscal 2008”, “2007” or “fiscal 2007”, and “2006”
or “fiscal 2006,” relate to as of or for the years ended
January 30, 2010, January 31, 2009, February 2, 2008
and February 3, 2007, respectively.
On March 2, 2008, we reorganized by creating a
new holding company structure. The new parent com-
pany is Dollar Tree, Inc., replacing Dollar Tree Stores,
Inc., which is now an operating subsidiary.
Available Information
Our annual reports on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act are available free of charge on our
website at www.dollartree.com as soon as reasonably
practicable after electronic filing of such reports with
the SEC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In Management’s Discussion and Analysis, we explain
the general financial condition and the results of oper-
ations for our company, including:
• what factors affect our business;
• what our net sales, earnings, gross margins and
costs were in 2008, 2007 and 2006;