Dollar Tree 2014 Annual Report Download - page 72

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56
Net Income Per Share
The following table sets forth the calculation of basic and diluted net income per share:
Year Ended
January 31, February 1, February 2,
(in millions, except per share data) 2015 2014 2013
Basic net income per share:
Net income $ 599.2 $ 596.7 $ 619.3
Weighted average number of shares
outstanding 206.0 218.1 229.3
Basic net income per share $ 2.91 $ 2.74 $ 2.70
Diluted net income per share:
Net income $ 599.2 $ 596.7 $ 619.3
Weighted average number of shares
outstanding 206.0 218.1 229.3
Dilutive effect of stock options and
restricted stock (as determined by
applying the treasury stock method) 1.0 1.0 1.4
Weighted average number of shares and
dilutive potential shares outstanding 207.0 219.1 230.7
Diluted net income per share $ 2.90 $ 2.72 $ 2.68
At January 31, 2015, February 1, 2014 and February 2, 2013, substantially all of the stock options outstanding were
included in the calculation of the weighted average number of shares and dilutive potential shares outstanding.
Share Repurchase Programs
The Company repurchases shares on the open market and under Accelerated Share Repurchase agreements.
On September 17, 2013, the Company entered into two $500.0 million variable maturity accelerated share
repurchase agreements to repurchase $1.0 billion of the Company’s common shares in the aggregate. One agreement
was collared and the other was uncollared.
The number of shares to be received by the Company under the collared agreement was determined based on the
weighted average market price of the Company’s common stock, less a discount, during a calculation period ending on
or before June 2014, subject to a minimum and maximum number of shares. Under this agreement, the Company
received 7.8 million shares during the year ended February 1, 2014. This represents 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". On May 15, 2014 the
collared agreement concluded and the Company received an additional 1.2 million shares resulting in a total of 9.0
million shares repurchased under this agreement.
The number of shares to be received by the Company under the uncollared agreement was determined based on the
weighted average market price of the Company's common stock, less a discount, during a calculation period ending on
or before June 2014. The Company received an initial delivery of 7.2 million shares during the year ended February 1,
2014. On February 14, 2014 the uncollared agreement concluded and the Company received an additional 1.9 million
shares resulting in a total of 9.1 million shares repurchased under this agreement.
On November 21, 2011, the Company entered into an agreement to repurchase $300.0 million of the Company’s common
shares under a “collared” Accelerated Share Repurchase Agreement (ASR). Under this agreement, the Company initially
received 6.8 million shares through December 13, 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 March 28, 2012 and the
Company received an additional 0.5 million shares under the "collared" agreement resulting in 7.3 million total shares being
repurchased under this ASR. The number of shares was determined based on the weighted average market price of the
Company's common stock, less a discount, during a specified period of time.