Dollar Tree 2009 Annual Report Download - page 45

Notes to Consolidated Financial Statements
net฀of฀a฀predetermined฀discount,฀as฀dened฀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 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 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.
NOTE 8—EMPLOYEE BENEFIT PLANS
Profit Sharing and 401(k) Retirement Plan
The฀Company฀maintains฀a฀dened฀contribution฀
prot฀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 contributions
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 January 30, 2010 $30.4 million
Year฀Ended฀January฀31,฀2009฀ 21.6฀million
Year฀Ended฀February฀2,฀2008฀ 19.0฀million
Eligible฀employees฀hired฀prior฀to฀January฀1,฀2007฀
are฀immediately฀vested฀in฀the฀Company’s฀prot฀sharing฀
contributions. Eligible employees hired on or subse-
quent฀to฀January฀1,฀2007฀vest฀in฀the฀Company’s฀prot฀
sharing contributions based on the following schedule:
•฀ 20%฀after฀two฀years฀of฀service
•฀ 40%฀after฀three฀years฀of฀service
•฀ 60%฀after฀four฀years฀of฀service
•฀ 100%฀after฀ve฀years฀of฀service
All eligible employees are immediately vested in any
Company฀match฀contributions฀under฀the฀401(k)฀
portion of the plan.
Deferred Compensation Plan
The Company has a deferred compensation plan which
provides฀certain฀ofcers฀and฀executives฀the฀ability฀
to defer a portion of their base compensation and
bonuses and invest their deferred amounts. The plan
is฀a฀nonqualied฀plan฀and฀the฀Company฀may฀make฀
discretionary contributions. The deferred amounts
and earnings thereon are payable to participants, or
designated฀beneciaries,฀at฀specied฀future฀dates,฀or฀
upon retirement or death. Total cumulative participant
deferrals฀were฀approximately฀$1.8฀million฀and฀$1.5฀
million,฀respectively,฀at฀January฀30,฀2010฀and฀January฀
31,฀2009,฀and฀are฀included฀in฀“other฀liabilities”฀on฀the฀
accompanying consolidated balance sheets. The related
assets are included in “other assets, net” on the accompa-
nying consolidated balance sheets. The Company did not
make any discretionary contributions in the years ended
January฀30,฀2010,฀January฀31,฀2009,฀or฀February฀2,฀2008.฀
฀฀฀DOLLAR฀TREE,฀INC.฀•฀2009฀Annual฀Report฀฀฀43