Dollar Tree, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

October 31, 2020

November 2, 2019

Weighted-average remaining lease term (years)

Weighted-average discount rate

Leases

9 Months Ended

Oct. 31, 2020

Our lease portfolio primarily consists of leases for our retail store locations and we also lease vehicles and trailers, as well as distribution center space and equipment.

The lease cost for operating leases that was recognized in the accompanying unaudited condensed consolidated income statements for the 13 and 39 weeks ended October 31, 2020 and November 2, 2019 was as follows:



	13 Weeks Ended				39 Weeks Ended
(in millions)	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Operating lease cost	$	389.7	$	378.2	$	1,158.5	$	1,139.8
Variable lease cost	95.3		94.7		288.0		272.2
Total lease cost*	$	485.0	$	472.9	$	1,446.5	$	1,412.0

*Excludes short-term lease cost and sublease income, which are immaterial

As of October 31, 2020, maturities of lease liabilities were as follows:



	(in millions)
Remainder of 2020	$	305.2
2021	1,474.8
2022	1,286.2
2023	1,072.4
2024	857.6
Thereafter	2,116.8
Total undiscounted lease payments	7,113.0
Less interest	854.4
Present value of lease liabilities	$	6,258.6

The future minimum lease payments above exclude $243.7 million of legally binding minimum lease payments for leases signed but not yet commenced as of October 31, 2020.

Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of October 31, 2020 and November 2, 2019 is as follows:

The following represents supplemental information pertaining to our operating lease arrangements for the 13 and 39 weeks ended October 31, 2020 and November 2, 2019:



	13 Weeks Ended				39 Weeks Ended
(in millions)	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	383.3	$	367.5	$	1,132.7	$	1,099.1
Right-of-use assets obtained in exchange for new operating lease liabilities	314.0		163.9		959.6		593.2