Dollar Tree 2012 Annual Report Download - page 46

Notes to Consolidated Financial Statements
million shares under the “collared” agreement resulting
in5.4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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
9.2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0.8millionshares
underthe“collared”agreementresultingin10.0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speciedperiodoftime.
NOTE 8—EMPLOYEE BENEFIT PLANS
Profit Sharing and 401(k) Retirement Plan
eCompanymaintainsadenedcontributionprot
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 February 2, 2013 $40.7 million
YearEndedJanuary28,2012 37.9million
YearEndedJanuary29,2011 35.1million
EligibleemployeeshiredpriortoJanuary1,2007
areimmediatelyvestedintheCompany’sprotsharing
contributions.Eligibleemployeeshiredonorsubsequent
toJanuary1,2007vestintheCompany’sprot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veyearsofservice
All eligible employees are immediately vested in any
Companymatchcontributionsunderthe401(k)portion
of the plan.
Deferred Compensation Plan
e Company has a deferred compensation plan which
provides certain officers and executives the ability to defer
a portion of their base compensation and bonuses and
investtheirdeferredamounts.eplanisanonqualied
plan and the Company may make discretionary contribu-
tions. e deferred amounts and earnings thereon are
payabletoparticipants,ordesignatedbeneciaries,at
speciedfuturedates,oruponretirementordeath.Total
cumulativeparticipantdeferralswereapproximately$4.2
millionand$3.3million,respectively,atFebruary2,2013
andJanuary28,2012,andareincludedin“otherliabili-
ties” on the accompanying consolidated balance sheets.
e related assets are included in “other assets, net” on
the accompanying consolidated balance sheets. e
Company did not make any discretionary contributions
intheyearsendedFebruary2,2013,January28,2012,
orJanuary29,2011.
NOTE 9—STOCK-BASED COMPENSATION PLANS
AtFebruary2,2013,theCompanyhaseightstock-based
compensationplans.Eachplanandtheaccounting
method are described below.
Fixed Stock Option Compensation Plans
Underthe1995StockIncentivePlan(SIP),theCompany
granted options to its employees for the purchase of up
to37.8millionsharesofCommonStock.eexercise
price of each option equaled the market price of the
Company’sstockatthedateofgrant,unlessahigherprice
wasestablishedbytheBoardofDirectors,andanoption’s
maximumtermis10years.Optionsgrantedunderthe
SIP generally vested over a three-year period. is plan
wasterminatedonJuly1,2003andreplacedwiththe
Company’s2003EquityIncentivePlan(EIP).
UndertheEIP,theCompanygrantedupto18.0
million shares of its Common Stock, plus any shares
available for future awards under the SIP, to the
Company’semployees,includingexecutiveocers
andindependentcontractors.eEIPpermittedthe
Company to grant equity awards in the form of stock
options, stock appreciation rights and restricted stock.
e exercise price of each stock option granted equaled
themarketpriceoftheCompany’sstockatthedate
of grant. e options generally vest over a three -year
periodandhaveamaximumtermof10years.isplan
wasterminatedonJune16,2011andreplacedwiththe
Company’sOmnibusIncentivePlan(OmnibusPlan).
eExecutiveOcerEquityIncentivePlan(EOEP)
wasavailableonlytotheChiefExecutiveOcerand
certain other executive officers. ese officers no longer
44 Dollar Tree, Inc.