Family Dollar 2003 Annual Report Download - page 24

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To the Board of Directors and Shareholders
of Family Dollar Stores, Inc.
In our opinion, the accompanying consolidated balance sheets and the related consoli-
dated statements of income, of shareholders’ equity and of cash flows present fairly,
in all material respects, the financial position of Family Dollar Stores, Inc. and its sub-
sidiaries at August 30, 2003 and August 31, 2002, and the results of their operations
and their cash flows for each of the three years in the period ended August 30, 2003
in conformity with accounting principles generally accepted in the United States of
America. These financial statements are the responsibility of the Company’s manage-
ment; our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these statements in accordance with audit-
ing standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made
by management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
September 29, 2003
Charlotte, North Carolina
Report of Independent Auditors
20
August 30, August 31, September 1,
Years Ended (In thousands, except per share amounts) 2003 2002 2001
Net sales $4,750,171 $4,162,652 $3,665,362
Costs and expenses:
Cost of sales 3,145,788 2,766,733 2,439,261
Selling, general and administrative 1,214,658 1,054,298 927,679
4,360,446 3,821,031 3,366,940
Income before income taxes 389,725 341,621 298,422
Income taxes (Note 5) 142,250 124,692 108,917
Net income $247,475 $216,929 $ 189,505
Net income per common share—basic (Note 9) $1.44$1.26$1.10
Average shares—basic (Note 9) 172,346 172,800 171,568
Net income per common share—diluted (Note 9) $1.43$1.25$1.10
Average shares—diluted (Note 9) 173,354 174,049 172,774
The accompanying notes are an integral part of the consolidated financial statements.
Family Dollar Stores, Inc. and Subsidiaries
Consolidated Statements of Income