| Segment Reporting |
SEGMENT REPORTING
The Company operates a chain of more than 15,200 retail discount 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 CODM regularly reviews to analyze performance and allocate resources.
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. If the measurement of a segment changes, prior period amounts and balances would be reclassified to be comparable to the current period’s presentation.
Dollar Tree segment net sales by merchandise type are as follows:
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Year Ended |
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February 2, |
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February 3, |
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January 28, |
(in millions) |
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2019 |
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2018 |
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2017 |
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Dollar Tree segment net sales by
merchandise type:
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Consumable |
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$ |
5,703.8 |
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48.7 |
% |
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$ |
5,470.6 |
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49.0 |
% |
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$ |
4,957.8 |
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48.9 |
% |
Variety |
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5,457.8 |
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46.6 |
% |
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5,169.1 |
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46.3 |
% |
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4,714.5 |
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46.5 |
% |
Seasonal |
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550.5 |
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4.7 |
% |
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524.7 |
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4.7 |
% |
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466.4 |
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4.6 |
% |
Total net sales |
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$ |
11,712.1 |
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100.0 |
% |
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$ |
11,164.4 |
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100.0 |
% |
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$ |
10,138.7 |
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100.0 |
% |
Family Dollar segment net sales by merchandise type are as follows:
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Year Ended |
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February 2, |
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February 3, |
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January 28, |
(in millions) |
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2019 |
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2018 |
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2017 |
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Family Dollar segment net sales by
merchandise type:
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Consumable |
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$ |
8,466.7 |
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76.2 |
% |
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$ |
8,344.1 |
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75.3 |
% |
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$ |
7,893.1 |
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74.6 |
% |
Home products |
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911.1 |
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8.2 |
% |
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930.8 |
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8.4 |
% |
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920.5 |
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8.7 |
% |
Apparel and accessories |
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700.0 |
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6.3 |
% |
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731.3 |
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6.6 |
% |
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740.6 |
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7.0 |
% |
Seasonal and electronics |
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1,033.4 |
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9.3 |
% |
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1,074.9 |
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9.7 |
% |
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1,026.3 |
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9.7 |
% |
Total net sales |
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$ |
11,111.2 |
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100.0 |
% |
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$ |
11,081.1 |
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100.0 |
% |
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$ |
10,580.5 |
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100.0 |
% |
Gross profit by segment is as follows:
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Year Ended |
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February 2, |
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February 3, |
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January 28, |
(in millions) |
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2019 |
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2018 |
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2017 |
Gross profit: |
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Dollar Tree |
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$ |
4,137.5 |
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$ |
3,998.5 |
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$ |
3,584.7 |
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Family Dollar |
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2,810.0 |
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3,023.4 |
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2,810.0 |
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Total gross profit |
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$ |
6,947.5 |
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$ |
7,021.9 |
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$ |
6,394.7 |
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Depreciation and amortization expense by segment is as follows:
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Year Ended |
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February 2, |
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February 3, |
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January 28, |
(in millions) |
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2019 |
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2018 |
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2017 |
Depreciation and amortization expense: |
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Dollar Tree |
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$ |
271.7 |
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$ |
251.8 |
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$ |
241.3 |
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Family Dollar |
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349.7 |
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359.7 |
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396.5 |
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Total depreciation and amortization expense |
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$ |
621.4 |
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$ |
611.5 |
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$ |
637.8 |
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Operating income (loss) by segment is as follows:
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Year Ended |
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February 2, |
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February 3, |
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January 28, |
(in millions) |
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2019 |
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2018 |
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2017 |
Operating income (loss): |
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Dollar Tree |
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$ |
1,502.5 |
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$ |
1,481.9 |
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$ |
1,305.3 |
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Family Dollar |
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(2,442.0 |
) |
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517.2 |
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399.5 |
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Total operating income (loss) |
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$ |
(939.5 |
) |
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$ |
1,999.1 |
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$ |
1,704.8 |
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Capital expenditures by segment are as follows:
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Year Ended |
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February 2, |
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February 3, |
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January 28, |
(in millions) |
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2019 |
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2018 |
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2017 |
Capital expenditures: |
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Dollar Tree |
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$ |
556.5 |
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$ |
383.1 |
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$ |
404.9 |
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Family Dollar |
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260.6 |
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249.1 |
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159.8 |
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Total capital expenditures |
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$ |
817.1 |
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$ |
632.2 |
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$ |
564.7 |
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Total assets by segment are as follows:
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As of |
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February 2, |
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February 3, |
(in millions) |
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2019 |
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2018 |
Total assets: |
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Dollar Tree |
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$ |
4,310.1 |
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$ |
4,113.4 |
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Family Dollar |
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9,191.1 |
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12,219.4 |
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Total assets |
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$ |
13,501.2 |
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$ |
16,332.8 |
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Total goodwill by segment is as follows:
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As of |
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February 2, |
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February 3, |
(in millions) |
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2019 |
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2018 |
Total goodwill: |
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Dollar Tree |
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$ |
376.5 |
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$ |
347.1 |
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Family Dollar |
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1,920.1 |
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4,678.1 |
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Total goodwill |
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$ |
2,296.6 |
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$ |
5,025.2 |
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Goodwill is reassigned between segments when stores are re-bannered between segments. In 2018, the Company reassigned $31.0 million of goodwill from Family Dollar to Dollar Tree as a result of re-bannering.
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