Dollar Tree 2011 Annual Report Download - page 45

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At January 28, 2012, January 29, 2011 and
January 30, 2010, substantially all of the stock options
outstanding were included in the calculation of the
weighted average number of shares and dilutive potential
shares outstanding.
Share Repurchase Programs
e Company repurchases shares on the open market
and under Accelerated Share Repurchase agreements.
On the open market, the Company repurchased
2.6 million shares for $145.9 million in fiscal 2011. e
Company repurchased 4.3 million shares for $214.7
million in fiscal 2010. e Company repurchased
6.4 million shares for $193.1 million in fiscal 2009.
At January 28, 2012, the Company had $1.2 billion
remaining under Board authorization.
On November 21, 2011, the Company entered
into an agreement to repurchase $300.0 million of the
Company’s common shares under a “collared” Accelerated
Share Repurchase Agreement (ASR). Under this agree-
ment, the Company initially received 3.4 million shares
through December 13, 2011, 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.”
e Company may receive a maximum of 3.8 million
shares under the agreement. e number of shares is
determined based on the weighted average market price
of the Company’s common stock, less a discount, during
a specified period of time. e weighted average market
price through January 28, 2012 as defined in the “collared”
agreement was $83.27. erefore, if the transaction
had settled on January 28, 2012, the Company would
have received an additional 0.4 million shares under the
“collared” agreement. Based on the applicable accounting
literature, these additional shares were not included in the
weighted average diluted earnings per share calculation
because their effect would be antidilutive. Based on the
hedge period reference price of $80.37, there is approxi-
mately $27.3 million of the $300.0 million related to the
agreement, as of January 28, 2012, that is recorded as a
reduction to shareholders’ equity pending final settlement
of the agreement. e ASR is expected to be completed in
the first quarter of 2012.
On August 24, 2011, the Company entered into an
agreement to repurchase $200.0 million of the Company’s
common shares under a “collared” ASR. Under this agree-
ment, the Company initially received 2.6 million shares
through September 2, 2011, 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.”
e ASR concluded on November 15, 2011 and the
Company received an additional 0.1 million shares under
the “collared” agreement resulting in 2.7 million total
shares being repurchased under this ASR. e number
of shares is determined based on the weighted average
market price of the Company’s common stock, less a
discount, during a specified period of time.
On March 19, 2010, the Company entered into
an agreement to repurchase $200.0 million of the
Company’s common shares under a “collared” ASR.
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. e ASR concluded on August 6, 2010 and
the Company received an additional 0.4 million shares
under the “collared” agreement resulting in 5.0 million
total shares being repurchased under this ASR. e
number of shares is determined based on the weighted
average market price of the Company’s common stock,
less a discount, during a specified period of time.
NOTE 8—EMPLOYEE BENEFIT PLANS
Profit Sharing and 401(k) Retirement Plan
e Company maintains a defined contribution profit
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.
e 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 28, 2012 $37.9 million
Year Ended January 29, 2011 35.1 million
Year Ended January 30, 2010 30.4 million
Eligible employees hired prior to January 1, 2007
are immediately vested in the Company’s profit sharing
contributions. Eligible employees hired on or subsequent
to January 1, 2007 vest in the Company’s profit 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 five years of service
All eligible employees are immediately vested in any
Company match contributions under the 401(k) portion
of the plan.
2011 Annual Report 43