Dollar Tree 2012 Annual Report Download - page 49

Notes to Consolidated Financial Statements
Employee Stock Purchase Plan
UndertheDollarTree,Inc.EmployeeStockPurchasePlan
(ESPP),theCompanyisauthorizedtoissueupto5,278,125
shares of Common Stock to eligible employees. Under the
termsoftheESPP,employeescanchoosetohaveupto
10%oftheirannualbaseearningswithheldtopurchasethe
Company’scommonstock.epurchasepriceofthestockis
85%ofthelowerofthepriceatthebeginningortheendof
thequarterlyoeringperiod.UndertheESPP,theCompany
hassold4,656,492sharesasofFebruary2,2013.
efairvalueoftheemployees’purchaserightsis
estimated on the date of grant using the Black-Scholes
option-pricing model with the following weighted
average assumptions:
Fiscal
2012
Fiscal
2011
Fiscal
2010
Expectedterm 3 months 3months 3months
Expectedvolatility 11.9% 12.6% 13.2%
Annual dividend yield — — —
Risk free interest rate 0.1% 0.1% 0.1%
Stock Option Activity
February 2, 2013
Shares
Weighted
Average
Per Share
ExercisePrice
Weighted
Average
Remaining
Term
Aggregate
IntrinsicValue
(in millions)
Outstanding, beginning of period  1,311,106  $ 10.15
Granted  11,284   47.0 0
Exercised  (574,585)   9.02
Forfeited  (29,550)   9.29
Outstanding, end of period  718,255  $ 11.66   3.8  $ 20.4
Options vested and expected to vest
atFebruary2,2013  718,255  $ 11.66   3.8  $ 20.4
Options exercisable at end of period  718,255  $ 11.66   3.8  $ 20.4
Options Outstanding OptionsExercisable
RangeofExercisePrices
Options
Outstanding
atFebruary2,
2013
Weighted
Average
Remaining
Contractual Life
Weighted
Average
Exercise
Price
Options
Exercisable
atFebruary2,
2013
Weighted
Average
Exercise
Price
$5.38to$7.09  77,357  0.1  $ 6.67  77,357  $ 6.67
$7.10to$9.93  327,900  3.3   8.90  327,900   8.90
$9.94to$14.52  254,462  4.5   12.63  254,462   12.63
$14.53to$16.12  11,050  6.8   16.11  11,050   16.11
$16.13to$28.04  20,924  7.5   23.26  20,924   23.26
$28.05to$53.99  26,562  9.0   39.93  26,562   39.93
$5.38to$53.99  718,255  3.8  $ 11.66  718,255  $ 11.66
eintrinsicvalueofoptionsexercisedduring2012,2011and2010wasapproximately$21.8million,$16.4million
and$16.0million,respectively.
e weighted average per share fair value of purchase
rightsgrantedin2012,2011and2010was$6.97,$5.22
and$3.30,respectively.Totalexpenserecognizedfor
thesepurchaserightswas$0.9millionineachof2012,
2011and2010.
NOTE 10 – ACQUISITION
OnNovember15,2010,theCompanycompletedits
acquisitionof86DollarGiantstores,locatedinthe
Canadian provinces of British Columbia, Ontario,
AlbertaandSaskatchewan.esestoresoerawide
assortment of quality general merchandise, contemporary
seasonal goods and everyday consumables, all priced at
$1.25(CAD)orless.isistheCompany’srstexpan-
sion of its retail operations outside of the United States
and provides the Company with a proven management
team and distribution network as well as additional
potential store growth in a new market.
eCompanypaidapproximately$51.3million
including the assumption of certain liabilities. e results
of Dollar Giant store operations are included in the
2012AnnualReport47