Dollar Tree 2014 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2014 Dollar Tree annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

51
The balance for unrecognized tax benefits at January 31, 2015, was $6.5 million. The total amount of unrecognized tax
benefits at January 31, 2015, that, if recognized, would affect the effective tax rate was $4.3 million (net of the federal tax
benefit). The following is a reconciliation of the Company’s total gross unrecognized tax benefits:
January 31,
2015
February 1,
2014
Beginning Balance $ 5.5 $ 5.6
Additions, based on tax positions related to current year 0.6 0.2
Additions for tax positions of prior years 0.9 0.8
Reductions for tax positions of prior years — (0.2)
Settlements — (0.3)
Lapses in statutes of limitation (0.5) (0.6)
Ending balance $ 6.5 $ 5.5
During fiscal 2014, the Company accrued potential interest of $0.2 million, related to these unrecognized tax benefits. As
of January 31, 2015, the Company has recorded a liability for potential interest of $0.7 million.
It is possible that state tax reserves will be reduced for audit settlements and statute expirations within the next 12
months. At this point it is not possible to estimate a range associated with the resolution of these audits.
NOTE 4 – COMMITMENTS AND CONTINGENCIES
Operating Lease Commitments
Future minimum lease payments under noncancelable store and distribution center operating leases are as follows:
(in millions)
2015 $ 558.6
2016 521.8
2017 469.8
2018 335.7
2019 244.1
Thereafter 492.5
Total minimum lease payments $ 2,622.5
The above future minimum lease payments include amounts for leases that were signed prior to January 31, 2015 for stores
that were not open as of January 31, 2015.
Minimum rental payments for operating leases do not include contingent rentals that may be paid under certain store leases
based on a percentage of sales in excess of stipulated amounts. Future minimum lease payments have not been reduced by
expected future minimum sublease rentals of $0.3 million under operating leases.
Minimum and Contingent Rentals
Rental expense for store and distribution center operating leases (including payments to related parties) included in the
accompanying consolidated income statements are as follows:
Year Ended
January 31, February 1, February 2,
(in millions) 2015 2014 2013
Minimum rentals $ 536.5 $ 496.4 $ 455.5
Contingent rentals 1.8 1.8 2.0