Dollar Tree 2012 Annual Report Download - page 45

Notes to Consolidated Financial Statements
under “other income, net” on the accompanying consoli-
dated statements of operations. e fair value of these
contractsatFebruary2,2013wasanassetof$0.5million.
In2008,theCompanyenteredintotwo$75.0
million interest rate swap agreements. ese interest
rate swaps were used to manage the risk associated with
interestrateuctuationsonaportionoftheCompany’s
NOTE 7—SHAREHOLDERS’ EQUITY
Preferred Stock
eCompanyisauthorizedtoissue10,000,000sharesofPreferredStock,$0.01parvaluepershare.Nopreferredshares
areissuedandoutstandingatFebruary2,2013andJanuary28,2012.
Net Income Per Share
e following table sets forth the calculation of basic and diluted net income per share:
(in millions, except per share data)
YearEnded
February 2, 2013 January28,2012 January29,2011
Basic net income per share:
Netincome $ 619.3  $ 488.3  $ 397.3
Weightedaveragenumberofsharesoutstanding 229.3   240.6   254.1
Basic net income per share $ 2.70  $ 2.03  $ 1.56
Diluted net income per share:
Netincome $ 619.3  $ 488.3  $ 397.3
Weightedaveragenumberofsharesoutstanding 229.3   240.6   254.1
Dilutiveeectofstockoptionsandrestrictedstock
(asdeterminedbyapplyingthetreasurystockmethod) 1.4   1.8 1.9
Weightedaveragenumberofsharesanddilutive
potential shares outstanding 230.7   242.4   256.0
Diluted net income per share $ 2.68  $ 2.01  $ 1.55
AtFebruary2,2013,January28,2012andJanuary29,2011,substantiallyallofthestockoptionsoutstanding
were included in the calculation of the weighted average number of shares and dilutive potential shares outstanding.
variable rate debt. Under these agreements, the Company
paidinteresttonancialinstitutionsataxedrateof
2.8%.Inexchange,thenancialinstitutionspaidthe
Company at a variable rate, which equals the variable rate
on the debt, excluding the credit spread. ese swaps
qualiedforhedgeaccountingtreatmentandexpiredin
March2011.
Share Repurchase Programs
e Company repurchases shares on the open market
and under Accelerated Share Repurchase agreements.
On the open market, the Company repurchased
7.7millionsharesfor$340.2millioninscal2012.
eCompanyrepurchased5.3millionsharesfor
$145.9millioninscal2011.eCompanyrepurchased
8.7millionsharesfor$214.7millioninscal2010.
AtFebruary2,2013,theCompanyhad$859.8million
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6.8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ASRconcludedonMarch28,2012andthe
Companyreceivedanadditional0.5millionsharesunder
the“collared”agreementresultingin7.3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speciedperiodoftime.
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 agreement, the Company initially received 5.1
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0.3
2012AnnualReport43