Dollar Tree 2011 Annual Report Download - page 41

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e balance for unrecognized tax benefits at January
28, 2012, was $15.5 million. e total amount of unrecog-
nized tax benefits at January 28, 2012, that, if recognized,
would affect the effective tax rate was $10.2 million (net
of the federal tax benefit). e following is a reconciliation
of the Company’s total gross unrecognized tax benefits for
the year ended January 28, 2012:
(in millions)
Balance at January 29, 2011 $ 15.2
Additions, based on tax positions
related to current year 0.8
Additions for tax positions of
prior years 0.6
Reductions for tax positions of
prior years —
Settlements —
Lapses in statutes of limitations (1.1)
Balance at January 28, 2012 $ 15.5
During fiscal 2011, the Company accrued potential
interest of $0.4 million, related to these unrecognized
tax benefits. No potential penalties were accrued during
2011 related to the unrecognized tax benefits. As of
January 28, 2012, the Company has recorded a liability
for potential penalties and interest of $0.1 million and
$4.1 million, respectively.
It is possible that state tax reserves will be reduced for
audit settlements and statute expirations within the next
12 months. At this point it is not possible to estimate a
range associated with the resolution of these audits.
NOTE 4—COMMITMENTS AND CONTINGENCIES
Operating Lease Commitments
Future minimum lease payments under noncancelable store operating leases are as follows:
(in millions)
2012 $ 452.9
2013 401.1
2014 337.5
2015 264.4
2016 182.1
ereafter 291.0
Total minimum lease payments $ 1,929.0
e above future minimum lease payments include amounts for leases that were signed prior to January 28, 2012 for
stores that were not open as of January 28, 2012.
Minimum rental payments for operating leases do not include contingent rentals that may be paid under certain
store leases based on a percentage of sales in excess of stipulated amounts. Future minimum lease payments have not
been reduced by expected future minimum sublease rentals of $1.6 million under operating leases.
Minimum and Contingent Rentals
Rental expense for store and distribution center operating leases (including payments to related parties) included in the
accompanying consolidated statements of operations are as follows:
(in millions)
Year Ended
January 28, 2012 January 29, 2011 January 30, 2010
Minimum rentals $421.8 $ 381.5 $ 349.9
Contingent rentals 1.8 1.4 1.0
2011 Annual Report 39