Dollar Tree 2013 Annual Report Download - page 63

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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.” The ASR concluded on November 15, 2011 and the Company received an additional 0.3 million shares
under the “collared” agreement resulting in 5.4 million total shares being repurchased under this ASR. The number of shares is
determined based on the weighted average market price of the Company’s common stock, less a discount, during a specified
period of time.
On the open market, the Company repurchased 2.4 million shares for $112.1 million in fiscal 2013. The Company
repurchased 7.7 million shares for $340.2 million in fiscal 2012. The Company repurchased 5.3 million shares for $145.9
million in fiscal 2011. At February 1, 2014, the Company had $1.0 billion remaining under Board repurchase authorization.
NOTE 8 – EMPLOYEE BENEFIT PLANS
Profit Sharing and 401(k) Retirement Plan
The Company maintains a defined contribution profit 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. The 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 1, 2014 $35.8 million
Year ended February 2, 2013 $40.7 million
Year Ended January 28, 2012 $37.9 million
Eligible employees vest in the Company’s profit 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 five 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
The 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. The plan is a nonqualified plan and the
Company may make discretionary contributions. The deferred amounts and earnings thereon are payable to participants, or
designated beneficiaries, at specified future dates, or upon retirement or death. Total cumulative participant deferrals were
approximately $5.1 million and $4.2 million, respectively, at February 1, 2014 and February 2, 2013, and are included in "other
liabilities" on the accompanying consolidated balance sheets. The related assets are included in "other assets, net" on the
accompanying consolidated balance sheets. The Company did not make any discretionary contributions in the years ended
February 1, 2014, February 2, 2013, or January 28, 2012.
NOTE 9 - STOCK-BASED COMPENSATION PLANS
At February 1, 2014, the Company has seven stock-based compensation plans. Each plan and the accounting method are
described below.
Fixed Stock Option Compensation Plans
Under the Equity Incentive Plan (EIP), the Company granted up to 18.0 million shares of its Common Stock, plus any
shares available for future awards under the 1995 Stock Incentive Plan, to the Company’s employees, including executive
officers and independent contractors. The EIP permitted the Company to grant equity awards in the form of stock options,
stock appreciation rights and restricted stock. The exercise price of each stock option granted equaled the market price of the
Company’s stock at the date of grant. The options generally vest over a three -year period and have a maximum term of 10
years. This plan was terminated on June 16, 2011 and replaced with the Company’s Omnibus Incentive Plan (Omnibus Plan).