Dollar Tree 2012 Annual Report Download - page 20

Management’s Discussion & Analysis of
Financial Condition and Results of Operations
Netcashusedininvestingactivitiesdecreased
$288.0millionin2011comparedwith2010primarily
duetoanadditional$170.0millionofproceedsfromthe
sale of short-term investments with minimal purchases
ofshort-terminvestmentscomparedto$157.8millionof
purchasesin2010.eproceedswereusedtofundthe
sharerepurchasesin2011.Inaddition,in2010weused
$49.4milliontoacquireDollarGiant.eseincreased
sourcesofcashwerepartiallyosetbya$71.4million
increaseincapitalexpendituresin2011duetofundsfor
newstoreprojectsandtheexpansionofourdistribution
center in Savannah, Georgia.
In2012,netcashusedinnancingactivities
decreased$319.8millionasaresultofreducedshare
repurchasesin2012.
In2011,netcashusedinnancingactivities
increased$218.9millionasaresultofincreasedshare
repurchasesin2011comparedwith2010.
AtFebruary2,2013,ourlong-termborrowingswere
$271.3million.Wealsohave$110.0millionand$100.0
million Letter of Credit Reimbursement and Security
Agreements,underwhichapproximately$147.0million
were committed to letters of credit issued for routine
purchasesofimportedmerchandiseatFebruary2,2013.
Netcashprovidedbyoperatingactivitiesdecreased
$8.8millionin2012comparedto2011duetoan
increase in cash used to purchase merchandise inventory
and cash used for prepaid rent as a result of February 1st
fallinginthelastweekofthescalyearpartiallyoset
by increased earnings before income taxes, depreciation
andamortizationin2012andincreasesinincome
taxes payable.
Netcashprovidedbyoperatingactivitiesincreased
$167.8millionin2011comparedto2010dueto
increased earnings before income taxes, depreciation and
amortizationin2011,adecreaseincashusedtopurchase
merchandise inventories and an increase in other current
liabilities due to increases in sales tax collected and
accrued expenses.
Netcashusedininvestingactivitiesincreased$175.2
millionin2012primarilyduetothesaleof$180.8
millionofshort-terminvestmentsin2011versusnonein
2012anda$62.1millionincreaseincapitalexpenditures
in2012duetothehighernumberofstoresopened
comparedto2011andtheconstructionofourdistribu-
tioncenterinConnecticut.e$62.3millioninproceeds
fromthesaleoftheinvestmentinOllie’sHoldings,Inc.
providedcashforinvestingactivitiesin2012.
Liquidity and Capital Resources
Our business requires capital to build and open new stores, expand our distribution network and operate and expand
existing stores. Our working capital requirements for existing stores are seasonal and usually reach their peak in
SeptemberandOctober.Historically,wehavesatisedourseasonalworkingcapitalrequirementsforexistingstores
and have funded our store opening and distribution network expansion programs from internally generated funds and
borrowings under our credit facilities.
efollowingtablecomparescash-owrelatedinformationfortheyearsendedFebruary2,2013,January28,2012
andJanuary29,2011:
YearEnded
(in millions) February 2, 2013 January28,2012 January29,2011
Netcashprovidedby(usedin):
Operating activities $ 677.7 $ 686.5 $ 518.7
Investing activities (261.3) (86.1) (374.1)
Financing activities (303.4) (623.2) (404.3)
18 Dollar Tree, Inc.