Dollar Tree 2015 Annual Report Download - page 88

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72
The fair value of the employees' purchase rights is estimated on the date of grant using the Black-Scholes option-pricing
model with the following weighted average assumptions:
Fiscal 2015 Fiscal 2014 Fiscal 2013
Expected term 3 months 3 months 3 months
Expected volatility 13.2% 8.8% 11.6%
Annual dividend yield —% —% —%
Risk free interest rate 0.2% —% —%
The weighted average per share fair value of purchase rights granted in 2015, 2014 and 2013 was $11.65, $8.17 and $8.26,
respectively. Total expense recognized for these purchase rights was $1.0 million, $0.8 million and $1.0 million in 2015, 2014
and 2013, respectively.
NOTE 11 – SEGMENT REPORTING
The Company operates a chain of more than 13,800 discount retail stores in 48 states and five Canadian provinces. The
Company's operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. The Company
defines its segments as those operations whose results its chief operating decision maker ("CODM") regularly reviews to
analyze performance and allocate resources. The results of operations of Family Dollar are included in the Company's results
of operations beginning on July 6, 2015.
The Dollar Tree segment is the leading operator of discount variety stores offering merchandise at the fixed price of $1.00.
The Dollar Tree segment includes the Company's operations under the "Dollar Tree," "Dollar Tree Canada," "Deals" and
"Dollar Tree Deals" brands, ten distribution centers in the United States, two distribution centers in Canada and a Store Support
Center in Chesapeake, Virginia.
The Family Dollar segment operates a chain of general merchandise discount retail stores providing consumers with a
selection of competitively priced merchandise in convenient neighborhood stores. The Family Dollar segment consists of the
Company's operations under the "Family Dollar" brand, eleven distribution centers and a Store Support Center in Matthews,
North Carolina.
The Company measures the results of its segments using, among other measures, each segment's net sales, gross profit and
operating income (loss). The Company may revise the measurement of each segment's operating income (loss), including the
allocation of distribution center and Store Support Center costs, as determined by the information regularly reviewed by the
CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable
to the current period's presentation.
Net sales by segment are as follows:
Year Ended
January 30, January 31, February 1,
(in millions) 2016 2015 2014
Net sales:
Dollar Tree $ 9,336.4 $ 8,602.2 $ 7,840.3
Family Dollar 6,162.0 — —
Total net sales $ 15,498.4 $ 8,602.2 $ 7,840.3