Dollar Tree 2010 Annual Report Download - page 45

Notes to Consolidated Financial Statements
At January 29, 2011 substantially all of the stock
options outstanding were included in the calculation
of the weighted average number of shares and dilutive
potential shares outstanding. At January 30, 2010 and
January 31, 2009, less than 0.1 million and 0.7 million
stock options, respectively are not included in the
calculation of the weighted average number of shares
and dilutive potential shares outstanding because their
effects would be anti-dilutive.
Share Repurchase Programs
The Company repurchased approximately 4.3 million
shares for approximately $214.7 million in fi scal 2010.
The Company repurchased approximately 6.4 million
shares for approximately $193.1 million in fi scal 2009.
The Company had no share repurchases in fi scal 2008.
At January 29, 2011, the Company had approximately
$345.9 million remaining under Board authorization.
On March 19, 2010, the Company entered into
an agreement to repurchase $200.0 million of the
Company’s common shares under an Accelerated Share
Repurchase Agreement (ASR). The entire $200.0
million was subject to a “collar” agreement. Under
this agreement, the Company initially received 4.6
million shares through March 31, 2010, 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 5.2 million. The number of shares was
determined based on the weighted average market
price of the Company’s common stock, less a discount,
during a specifi ed period of time. The repurchase
period ranged from one and one-half to four months
following the two week maximum hedge completion
period. The ASR concluded on August 6, 2010 and the
weighted average market price through August 6, 2010
as defi ned in the “collared” agreement was $41.41.
Therefore, on August 6, 2010, the Company received
an additional 0.4 million shares under the “collared”
agreement resulting in 5.0 million total shares being
repurchased under the ASR.
NOTE 8—EMPLOYEE BENEFIT PLANS
Profi t Sharing and 401(k) Retirement Plan
The Company maintains a defi ned contribution
profi 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 29, 2011 $35.1 million
Year Ended January 30, 2010 30.4 million
Year Ended January 31, 2009 21.6 million
Eligible employees hired prior to January 1, 2007
are immediately vested in the Company’s profi t sharing
contributions. Eligible employees hired on or subse-
quent to January 1, 2007 vest in the Company’s profi 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 fi 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 offi cers and executives the ability
to defer a portion of their base compensation and
bonuses and invest their deferred amounts. The plan
is a nonqualifi ed plan and the Company may make
discretionary contributions. The deferred amounts and
earnings thereon are payable to participants, or desig-
nated benefi ciaries, at specifi ed future dates, or upon
retirement or death. Total cumulative participant defer-
rals were approximately $2.8 million and $1.8 million,
respectively, at January 29, 2011 and January 30, 2010,
and are included in “other liabilities” on the accom-
panying consolidated balance sheets. The related assets
are included in “other assets, net” on the accompanying
consolidated balance sheets. The Company did not
make any discretionary contributions in the years ended
January 29, 2011, January 30, 2010, or January 31, 2009.
DOLLAR TREE, INC. ♦ 2010 Annual Report 43