Dollar Tree 2009 Annual Report Download - page 49
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Please find page 49 of the 2009 Dollar Tree annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to Consolidated Financial Statements
Company, contingent on the Company meeting certain
performancetargetsin2008andfutureserviceofthese
ofcersthroughscal2009.TheCompanymetthese
performancetargetsinscal2008;therefore,thefair
valueoftheseRSUsof$2.3millionwasexpensed
overtheserviceperiod.TheCompanyrecognized$1.1
millionand$1.2millionofexpenseontheseRSUs
in2009and2008,respectively.Thefairvalueofthese
RSUswasdeterminedusingtheCompany’sclosing
stock price on the grant date.
ThefollowingtablesummarizesthestatusofRSUs
asofJanuary30,2010,andchangesduringtheyearthen
ended:
Shares
Weighted
Average
Grant
Date Fair
Value
NonvestedatJanuary31,2009 747,493 $ 30.13
Granted 566,950 43.31
Ve s t e d (308,744) 31.20
Forfeited (42,251) 36.19
NonvestedatJanuary30,2010 963,448 $ 37. 29
InconnectionwiththevestingofRSUsin2009,
2008and2007,certainemployeeselectedtoreceive
shares net of minimum statutory tax withholding
amountswhichtotaled$4.8million,$2.6millionand
$2.9million,respectively.Thetotalfairvalueofthe
restrictedsharesvestedduringtheyearsendedJanuary
30,2010,January31,2009andFebruary2,2008was
$9.6million,$8.0millionand$8.2million,respectively.
Employee Stock Purchase Plan
UndertheDollarTree,Inc.EmployeeStockPurchase
Plan(ESPP),theCompanyisauthorizedtoissueupto
1,759,375sharesofcommonstocktoeligibleemployees.
Under the terms of the ESPP, employees can choose
tohaveupto10%oftheirannualbaseearningswith-
heldtopurchasetheCompany’scommonstock.The
purchasepriceofthestockis85%ofthelowerofthe
price at the beginning or the end of the quarterly
offering period. Under the ESPP, the Company has sold
1,333,000sharesasofJanuary30,2010.
Thefairvalueoftheemployees’purchaserightsis
estimated on the date of grant using the Black-Scholes
option-pricing model with the following weighted
average assumptions:
Fiscal
2009
Fiscal
2008
Fiscal
2007
Expected term 3 months 3 months 3 months
Expected volatility 17.4% 25.6% 16.3%
Annual dividend yield — — —
Risk free interest rate 1.8% 3.8% 4.4%
The weighted average per share fair value of
thosepurchaserightsgrantedin2009,2008and2007
was$7.78,$5.89and$5.74,respectively.Totalexpense
recognizedforthesepurchaserightswas$0.9million,
$0.8millionand$0.9millionin2009,2008and2007,
respectively.
NOTE 10—SUBSEQUENT EVENT
As noted in footnote 1, the Company assigns cost to
store inventories using the retail inventory method,
determined on a weighted average cost basis. Since
inceptionthroughscal2009,theCompanyusedone
inventory pool for this calculation. Over the years, we
have invested in our retail technology systems, which
hasallowedustoreneourestimateofinventory
costundertheretailmethod.OnJanuary,31,2010,
therstdayofscal2010,theCompanybeganusing
approximately30inventorypoolsinitsretailinventory
calculation. As a result of this change, the Company
willrecordanon-cashchargetogrossprotand
a corresponding reduction in inventory, at cost, of
approximately$26millionintherstquarterof2010.
This is a prospective change and will not have any
effect on prior periods.
DOLLARTREE,INC.•2009AnnualReport47