Dollar Tree 2012 Annual Report Download - page 34

NOTE 1—SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Description of Business
DollarTree,Inc.(theCompany)istheleadingoperator
ofdiscountvarietyretailstoresoeringmerchandise
atthexedpriceof$1.00orlesswith4,671discount
variety retail stores in the United States and Canada at
February2,2013.Belowarethoseaccountingpolicies
consideredbytheCompanytobesignicant.
Principles of Consolidation
econsolidatednancialstatementsincludethe
nancialstatementsofDollarTree,Inc.,anditswholly
ownedsubsidiaries.Allsignicantintercompanybalances
and transactions have been eliminated in consolidation.
Foreign Currency
efunctionalcurrenciesoftheCompany’sinternational
subsidiaries are primarily the local currencies of the
countries in which the subsidiaries are located. Foreign
currency denominated assets and liabilities are translated
intoU.S.dollarsusingtheexchangeratesineectatthe
consolidated balance sheet date. Results of operations
and cash flows are translated using the average exchange
ratesthroughouttheperiod.eeectofexchange
rate fluctuations on translation of assets and liabilities
isincludedasacomponentofshareholders’equityin
accumulatedothercomprehensiveincome(loss).Gains
and losses from foreign currency transactions, which are
includedinnon-operatingincome(expense),havenot
beensignicant.
Stock Dividends
OnMay29,2012,theCompany’sBoardofDirectors
approveda2-for-1stocksplitintheformofa100%
commonstockdividend.Newsharesweredistributedon
June26,2012toshareholdersofrecordasoftheclose
ofbusinessonJune12,2012.Asaresult,allshareand
persharedataintheseconsolidatednancialstatements
andaccompanyingnoteshavebeenretroactivelyadjusted
toreectthesedividends,eachhavingtheeectofa
2-for-1stocksplit.Inconnectionwiththestockdividend
authorizedbytheCompany’sBoardofDirectorsin2010,
the company issued one-half share for each outstanding
shareofCommonStock,payableJune24,2010to
shareholdersofrecordasofJune10,2010.
Segment Information
eCompany’sretailstoresrepresentasingleoperating
segment based on the way the Company manages its
business. Operating decisions are made at the Company
level in order to maintain a consistent retail store
presentation.eCompany’sretailstoressellsimilar
products and services, use similar processes to sell those
products and services, and sell their products and services
to similar classes of customers. e amounts of long-
lived assets and net sales outside of the U.S. were not
signicantforanyoftheperiodspresented.
Fiscal Year
eCompany’sscalyearendsontheSaturdayclosest
toJanuary31.Anyreferencehereinto“2012”or“Fiscal
2012,”“2011”or“Fiscal2011,”and“2010”or“Fiscal2010,”
relatestoasoforfortheyearsendedFebruary2,2013,
January28,2012,andJanuary29,2011,respectively.
Fiscal2012endedonFebruary2,2013andincluded53
weeks,commensuratewiththeretailcalendar.Fiscal2011
and2010eachincluded52weeks.
Use of Estimates
epreparationofnancialstatementsinconformity
with U.S. generally accepted accounting principles
requires management to make estimates and assumptions
thataectthereportedamountsofassetsandliabilities
and disclosures of contingent assets and liabilities at the
dateoftheconsolidatednancialstatementsandthe
reported amounts of revenues and expenses during the
reportingperiod.Actualresultscoulddierfromthose
estimates.
Cash and Cash Equivalents
CashandcashequivalentsatFebruary2,2013and
January28,2012includes$344.5millionand$249.3
million, respectively, of investments primarily in money
market securities which are valued at cost, which
approximates fair value. For purposes of the consolidated
statements of cash flows, the Company considers all
highly liquid debt instruments with original maturities of
3monthsorlesstobecashequivalents.emajorityof
paymentsduefromnancialinstitutionsforthesettle-
ment of debit card and credit card transactions process
within3businessdays,andthereforeareclassiedascash
and cash equivalents.
Notes to Consolidated Financial Statements
32 Dollar Tree, Inc.