Dollar Tree 2009 Annual Report Download - page 44

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Notes to Consolidated Financial Statements
Share Repurchase Programs
The฀Company฀repurchased฀approximately฀4.3฀million฀
shares฀for฀approximately฀$193.1฀million฀in฀scal฀2009.฀
Less฀than฀0.1฀million฀shares฀totaling฀$2.4฀million฀had฀
not฀settled฀as฀of฀January฀30,฀2010฀and฀these฀amounts฀
have been accrued in the accompanying consolidated
balance฀sheets฀as฀of฀January฀30,฀2010.฀The฀Company฀
repurchased฀approximately฀12.8฀million฀shares฀for฀
approximately฀$473.0฀million฀in฀scal฀2007.฀The฀
Company฀had฀no฀share฀repurchases฀in฀scal฀2008.฀At฀
January฀30,฀2010,฀the฀Company฀had฀approximately฀
$260.6฀million฀remaining฀under฀Board฀authorization.฀
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 maximum
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,฀
NOTE 7—SHAREHOLDERS’ EQUITY
Preferred Stock
The฀Company฀is฀authorized฀to฀issue฀10,000,000฀shares฀of฀Preferred฀Stock,฀$0.01฀par฀value฀per฀share.฀No฀preferred฀shares฀
are฀issued฀and฀outstanding฀at฀January฀30,฀2010฀and฀January฀31,฀2009.
Net Income Per Share
The following table sets forth the calculation of basic and diluted net income per share:
(in millions, except per share data)
Year Ended
January 30,
2010
Year฀Ended
January฀31,
฀2009฀
Year฀Ended
February฀2,
฀2008฀
Basic net income per share:
Net income $ 320.5 $ 229.5฀ $ 201.3฀
Weighted฀average฀number฀of฀shares฀outstanding 89.4 90.3฀ 95.9
Basic net income per share $ 3.59 $ 2.54฀ $ 2.10฀
Diluted฀net฀income฀per฀share:
Net income $ 320.5 $ 229.5฀ $ 201.3฀
Weighted฀average฀number฀of฀shares฀outstanding 89.4 90.3฀ 95.9
Dilutive฀effect฀of฀stock฀options฀and฀restricted฀stock฀
(as determined by applying the treasury stock method) 0.6 0.5฀ 0.5฀
Weighted฀average฀number฀of฀shares฀and฀dilutive฀potential฀
shares outstanding 90.0 90.8฀ 96.4฀
Diluted฀net฀income฀per฀share฀ $ 3.56 $ 2.53฀ $ 2.09฀
At฀January฀30,฀2010,฀less฀than฀0.1฀million฀stock฀options฀are฀not฀included฀in฀the฀calculation฀of฀the฀weighted฀
average number of shares and dilutive potential shares outstanding because their effect would be anti-dilutive.
At฀January฀31,฀2009฀and฀February฀2,฀2008,฀0.5฀million,฀and฀0.4฀million฀stock฀options,฀respectively฀are฀not฀included฀
in the calculation of the weighted average number of shares and dilutive potential shares outstanding because their
effect would be anti-dilutive.
42฀฀฀DOLLAR฀TREE,฀INC.฀•฀2009฀Annual฀Report