Dollar Tree 2012 Annual Report Download - page 41

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Notes to Consolidated Financial Statements
ebalanceforunrecognizedtaxbenetsat
February2,2013,was$5.6million.etotalamountof
unrecognizedtaxbenetsatFebruary2,2013,that,if
recognized,wouldaecttheeectivetaxratewas$3.7
million(netofthefederaltaxbenet).efollowingisa
reconciliationoftheCompany’stotalgrossunrecognized
taxbenetsfortheyearendedFebruary2,2013:
(in millions)
BalanceatJanuary28,2012 $ 15.5
Additions, based on tax positions
related to current year   2.5
Additions for tax positions of
prior years   2.1
Reductions for tax positions of
prior years   (3.1)
Settlements   (1.9)
Lapses in statutes of limitations   (9.5)
BalanceatFebruary2,2013  $ 5.6
Duringscal2012,theCompanyaccruedpotential
interestof$0.2million,relatedtotheseunrecognizedtax
benets.Nopotentialpenaltieswereaccruedduring2012
relatedtotheunrecognizedtaxbenets.AsofFebruary2,
2013,theCompanyhasrecordedaliabilityforpotential
interestof$0.4million.
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 and distribution center operating leases are as follows:
(in millions)
2013 $ 493.8
2014  408.8
2015  376.4
2016   293.3
2017  207.6
ereafter  369.2
Total minimum lease payments $ 2,149.1
eabovefutureminimumleasepaymentsincludeamountsforleasesthatweresignedpriortoFebruary2,2013for
storesthatwerenotopenasofFebruary2,2013.
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$1.2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
February 2, 2013 January28,2012 January29,2011
Minimumrentals $ 455.5  $ 421.8  $ 381.5
Contingent rentals 2.0   1.8   1.4
2012AnnualReport39