Dollar Tree 2008 Annual Report Download - page 28

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26
DOLLAR TREE, INC. • 2008 ANNUAL REPORT
The following table summarizes the financial terms of our interest rate swap agreements and the fair value of
the interest rate swaps at January 31, 2009:
Hedging Receive Pay Knock-out Fair
Instrument Variable Fixed Rate Expiration Value
Two $75.0 million
interest rate swaps LIBOR 2.80% N/A 3/31/11 ($4.4 million)
$17.6 million interest rate swap LIBOR 4.88% 7.75% 4/1/09 ($0.1 million)
Hypothetically, a 1% change in interest rates results in an approximate $1.7 million change in the amount
paid or received under the terms of the interest rate swap agreement on an annual basis. Due to many factors,
management is not able to predict the changes in the fair values of our interest rate swaps. These fair values are
obtained from our outside financial institutions.
Management’s Discussion & Analysis of Financial Condition and Results of Operations