Dollar Tree 2015 Annual Report Download - page 82

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66
Net Income Per Share
The following table sets forth the calculation of basic and diluted net income per share:
Year Ended
January 30, January 31, February 1,
(in millions, except per share data) 2016 2015 2014
Basic net income per share:
Net income $ 282.4 $ 599.2 $ 596.7
Weighted average number of shares outstanding 222.5 206.0 218.1
Basic net income per share $ 1.27 $ 2.91 $ 2.74
Diluted net income per share:
Net income $ 282.4 $ 599.2 $ 596.7
Weighted average number of shares outstanding 222.5 206.0 218.1
Dilutive effect of stock options and
restricted stock (as determined by
applying the treasury stock method) 1.0 1.0 1.0
Weighted average number of shares and
dilutive potential shares outstanding 223.5 207.0 219.1
Diluted net income per share $ 1.26 $ 2.90 $ 2.72
At January 30, 2016, January 31, 2015 and February 1, 2014, 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.
The Company did not repurchase any shares of common stock on the open market in fiscal 2015 or fiscal 2014. The
Company repurchased 2.4 million shares for $112.1 million on the open market in fiscal 2013. At January 30, 2016, the
Company had $1.0 billion remaining under Board repurchase authorization.
NOTE 9 – EMPLOYEE BENEFIT PLANS
Dollar Tree Profit Sharing and 401(k) Retirement Plan
The Company maintains a defined contribution profit sharing and 401(k) plan which is available to all United States-based
Dollar Tree 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.