Dollar Tree 2007 Annual Report Download - page 45

DOLLAR TREE, INC. • 2007 ANNUAL REPORT 43
The remaining $50.0 million was executed under
a “collared” agreement. Under this agreement, the
Company initially received 1.5 million shares through
December 15, 2006, representing the minimum num-
ber of shares to be received based on a calculation
using the “cap” or high-end of the price range of the
collar. The number of shares received under the agree-
ment was determined based on the weighted average
market price of the Company’s common stock, net of
a predetermined discount, during the time after the
initial execution date through March 8, 2007. The cal-
culated weighted average market price through March
8, 2007, net of a predetermined discount, as defined in
the “collared” agreement, was $31.97. Therefore, on
March 8, 2007, the Company received an additional
0.1 million shares under the “collared” agreement
resulting in 1.6 million total shares being repurchased
under this agreement.
On March 29, 2007, the Company entered into
an agreement with a third party to repurchase $150.0
million of the Company’s common shares under an
Accelerated Share Repurchase Agreement. The entire
$150.0 million was executed under a “collared” agree-
ment. Under this agreement, the Company initially
received 3.6 million shares through April 12, 2007,
representing the minimum number of shares to be
received based on a calculation using the “cap” or
high-end of the price range of the collar. The maxi-
mum number of shares that could have been received
under the agreement was 4.1 million. The number of
shares was determined based on the weighted average
market price of the Company’s common stock during
the four months after the initial execution date. The
calculated weighted average market price through July
30, 2007, net of a predetermined discount, as defined
in the “collared” agreement, was $40.78. Therefore, on
July 30, 2007, the Company received an additional
0.1 million shares under the “collared” agreement
resulting in 3.7 million total shares being repurchased
under this agreement.
On August 30, 2007, the Company entered into
an agreement with a third party to repurchase $100.0
million of the Company’s common shares under an
Accelerated Share Repurchase Agreement. The entire
$100.0 million was executed under a “collared” agree-
ment. Under this agreement, the Company initially
received 2.1 million shares through September 10,
2007, representing the minimum number of shares to
be received based on a calculation using the “cap” or
high-end of the price range of the collar. The number
of shares received under the agreement was deter-
mined based on the weighted average market price of
the Company’s common stock, net of a predetermined
discount, during the time after the initial execution
date through a period of up to four and one half
months. The contract terminated on October 22, 2007
and the weighted average price through that date was
$41.16. Therefore, on October 22, 2007, the
Company received an additional 0.3 million shares
resulting in 2.4 million total shares repurchased under
this agreement.
In March 2005, the Company’s Board of
Directors authorized the repurchase of up to $300.0
million of the Company’s common stock through
March 2008. In November 2006, the Company’s
Board of Directors authorized the repurchase of up to
$500.0 million of the Company’s common stock. This
amount was in addition to the $27.0 million remain-
ing on the March 2005 authorization. In October
2007, the Company’s Board of Directors authorized
the repurchase of an additional $500.0 million of the
Company’s common stock. This authorization was in
addition to the November 2006 authorization which
had approximately $98.4 million remaining.
The Company repurchased approximately 12.8
million shares for approximately $473.0 million in fis-
cal 2007, approximately 8.8 million shares for approx-
imately $248.2 million in fiscal 2006 and approxi-
mately 7.0 million shares for approximately $180.4
million in fiscal 2005. At February 2, 2008,
the Company had approximately $453.7 million
remaining under Board authorization.
NOTE 8 – EMPLOYEE BENEFIT PLANS
Profit Sharing and 401(k) Retirement Plan
The Company maintains a defined contribution profit
sharing and 401(k) plan which is available to all
employees over 21 years of age who have completed
one year of service in which they have worked at least
1,000 hours. Eligible employees may make elective
salary deferrals. The Company may make contribu-
tions at its discretion.
Contributions to and reimbursements by the
Company of expenses of the plan included in the
accompanying consolidated statements of operations
were as follows:
Year Ended February 2, 2008 $19.0 million
Year Ended February 3, 2007 16.8 million
Year Ended January 28, 2006 6.9 million
Eligible employees hired prior to January 1, 2007
are immediately vested in the Company’s profit shar-
ing contributions. Eligible employees hired subsequent