Dollar Tree 2013 Annual Report Download - page 39

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23
the collared ASR. We repurchased 8.1 million shares for $340.2 million in fiscal 2012. We repurchased 17.4 million shares for
$645.9 million in fiscal 2011. At February 1, 2014, we have $1.0 billion remaining under Board repurchase authorization.
Funding Requirements
Overview, Including Off-Balance Sheet Arrangements
We expect our cash needs for opening new stores and expanding existing stores in fiscal 2014 to total approximately
$258.8 million, which includes capital expenditures, initial inventory and pre-opening costs.
Our estimated capital expenditures for fiscal 2014 are between $350.0 million and $360.0 million, including planned
expenditures for our new and expanded stores, the addition of freezers and coolers to approximately 320 stores, the expansion
of our Joliet, Illinois distribution center and the initial phases of work on our eleventh distribution center. We believe that we
can adequately fund our working capital requirements and planned capital expenditures for the next few years from net cash
provided by operations and potential borrowings under our existing credit facility.
The following tables summarize our material contractual obligations at February 1, 2014, including both on- and off-
balance sheet arrangements, and our commitments, including interest on long-term borrowings (in millions):
Contractual Obligations Total 2014 2015 2016 2017 2018 Thereafter
Lease Financing
Operating lease obligations $ 2,326.3 $ 516.4 $ 476.4 $ 394.2 $ 329.6 $ 206.3 $ 403.4
Long-term Borrowings
Senior notes 750.0—————750.0
Demand revenue bonds 12.8 12.8 ———— —
Forgivable promissory note 7.0———0.21.4 5.4
Interest on long-term borrowings 294.8 33.2 33.2 33.1 33.1 33.1 129.1
Total obligations $ 3,390.9 $ 562.4 $ 509.6 $ 427.3 $ 362.9 $ 240.8 $ 1,287.9
Commitments Total
Expiring
in 2014
Expiring
in 2015
Expiring
in 2016
Expiring
in 2017
Expiring
in 2018 Thereafter
Letters of credit and surety bonds $ 173.8 $ 173.8 $ — $ — $ — $ — $ —
Technology assets 2.4 2.4 ———— —
Telecommunication contracts 19.3 7.2 5.5 5.1 1.5 — —
Total commitments $ 195.5 $ 183.4 $ 5.5 $ 5.1 $ 1.5 $ — $ —
Lease Financing
Operating lease obligations. Our operating lease obligations are primarily for payments under noncancelable store
leases. The commitment includes amounts for leases that were signed prior to February 1, 2014 for stores that were not yet
open on February 1, 2014.
Long-term Borrowings
Senior notes. In September 2013, we entered into a Note Purchase Agreement with institutional accredited investors in
which we issued and sold $750.0 million of senior notes (the "Notes") in an offering exempt from the registration requirements
of the Securities Act of 1933. The Notes consist of three tranches: $300.0 million of 4.03% Senior Notes due September 16,
2020; $350.0 million of 4.63% Senior Notes due September 16, 2023; and $100.0 million of 4.78% Senior Notes due
September 16, 2025. Interest on the Notes is payable semi-annually on January 15 and July 15 of each year, beginning January
15, 2014. For complete terms of the Notes please see Item 8. Financial Statements and Supplementary Data, "Note 5 - Long-
Term Debt" beginning on page 44 of this Form 10-K.
Demand revenue bonds. In May 1998, we entered into an agreement with the Mississippi Business Finance Corporation
under which it issued $19.0 million of variable-rate demand revenue bonds. We used the proceeds from the bonds to finance
the acquisition, construction and installation of land, buildings, machinery and equipment for our distribution facility in Olive
Branch, Mississippi. At February 1, 2014, the balance outstanding on the bonds was $12.8 million. These bonds are due to be
fully repaid in June 2018. The bonds do not have a prepayment penalty as long as the interest rate remains variable. The bonds