Annual report pursuant to Section 13 and 15(d)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

v3.8.0.1
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)
12 Months Ended
Feb. 03, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Statement of Comprehensive Income
Condensed Consolidating Statements of Comprehensive Income
 
 
Year Ended February 3, 2018
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidation
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
Net sales
 
$

 
$
22,010.0

 
$
358.8

 
$
(123.3
)
 
$
22,245.5

Cost of sales
 

 
15,105.5

 
173.4

 
(55.3
)
 
15,223.6

Gross profit
 

 
6,904.5

 
185.4

 
(68.0
)
 
7,021.9

Selling, general and administrative
   expenses
 
6.1

 
4,922.5

 
162.2

 
(68.0
)
 
5,022.8

Operating income (loss)
 
(6.1
)
 
1,982.0

 
23.2

 

 
1,999.1

Interest expense (income), net
 
239.8

 
69.8

 
(7.8
)
 

 
301.8

Other (income) expense, net
 
(0.1
)
 
(7.5
)
 
0.9

 

 
(6.7
)
Income before income taxes
 
(245.8
)
 
1,919.7

 
30.1

 

 
1,704.0

Provision for income taxes
 
(113.5
)
 
87.2

 
16.0

 

 
(10.3
)
Equity in earnings of subsidiaries
 
(1,846.6
)
 
(14.2
)
 

 
1,860.8

 

Net income
 
1,714.3

 
1,846.7

 
14.1

 
(1,860.8
)
 
1,714.3

Other comprehensive income
 
5.3

 
1.6

 
5.3

 
(6.9
)
 
5.3

Comprehensive income
 
$
1,719.6

 
$
1,848.3

 
$
19.4

 
$
(1,867.7
)
 
$
1,719.6


Condensed Consolidating Statements of Comprehensive Income (Continued)
 
 
Year Ended January 28, 2017
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidation
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
Net sales
 
$

 
$
20,506.9

 
$
731.6

 
$
(519.3
)
 
$
20,719.2

Cost of sales
 

 
14,178.1

 
584.4

 
(438.0
)
 
14,324.5

Gross profit
 

 
6,328.8

 
147.2

 
(81.3
)
 
6,394.7

Selling, general and administrative
   expenses
 
7.4

 
4,631.0

 
125.2

 
(73.7
)
 
4,689.9

Operating (loss) income
 
(7.4
)
 
1,697.8

 
22.0

 
(7.6
)
 
1,704.8

Interest expense (income), net
 
316.8

 
66.3

 
(7.6
)
 

 
375.5

Other (income) expense, net
 
7.4

 
(0.7
)
 
0.8

 
(7.6
)
 
(0.1
)
Income (loss) before income taxes
 
(331.6
)
 
1,632.2

 
28.8

 

 
1,329.4

Provision for income taxes
 
(133.3
)
 
558.8

 
7.7

 

 
433.2

Equity in earnings of subsidiaries
 
(1,094.5
)
 
(15.4
)
 

 
1,109.9

 

Net income
 
896.2

 
1,088.8

 
21.1

 
(1,109.9
)
 
896.2

Other comprehensive income
 
5.5

 
1.7

 
5.5

 
(7.2
)
 
5.5

Comprehensive income
 
$
901.7

 
$
1,090.5

 
$
26.6

 
$
(1,117.1
)
 
$
901.7

 
 
Year Ended January 30, 2016
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidation
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
Net sales
 
$

 
$
15,312.2

 
$
737.6

 
$
(551.4
)
 
$
15,498.4

Cost of sales
 

 
10,715.6

 
664.1

 
(538.0
)
 
10,841.7

Gross profit
 

 
4,596.6

 
73.5

 
(13.4
)
 
4,656.7

Selling, general and administrative
   expenses
 
48.4

 
3,505.5

 
62.5

 
(9.4
)
 
3,607.0

Operating (loss) income
 
(48.4
)
 
1,091.1

 
11.0

 
(4.0
)
 
1,049.7

Interest expense (income), net
 
464.4

 
139.1

 
(4.1
)
 

 
599.4

Other (income) expense, net
 
4.0

 
(0.2
)
 
2.3

 
(4.0
)
 
2.1

Income (loss) before income taxes
 
(516.8
)
 
952.2

 
12.8

 

 
448.2

Provision for income taxes
 
(213.3
)
 
361.6

 
17.5

 

 
165.8

Equity in earnings of subsidiaries
 
(585.9
)
 
(31.1
)
 

 
617.0

 

Net income (loss)
 
282.4

 
621.7

 
(4.7
)
 
(617.0
)
 
282.4

Other comprehensive loss
 

 

 
(9.0
)
 

 
(9.0
)
Comprehensive income
 
$
282.4

 
$
621.7

 
$
(13.7
)
 
$
(617.0
)
 
$
273.4

Condensed Balance Sheet
Condensed Consolidating Balance Sheets
 
 
February 3, 2018
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidating
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
133.2

 
$
700.1

 
$
264.5

 
$

 
$
1,097.8

Merchandise inventories, net
 

 
3,120.4

 
48.9

 

 
3,169.3

Current deferred tax assets, net
 

 
(7.9
)
 
7.9

 

 

Due from intercompany, net
 
102.1

 
635.5

 
69.0

 
(806.6
)
 

Other current assets
 
0.2

 
271.9

 
37.1

 

 
309.2

Total current assets
 
235.5

 
4,720.0

 
427.4

 
(806.6
)
 
4,576.3

Property, plant and equipment, net
 

 
3,175.7

 
25.0

 

 
3,200.7

Assets available for sale
 

 
8.0

 

 

 
8.0

Goodwill
 

 
4,993.1

 
32.1

 

 
5,025.2

Favorable lease rights, net
 

 
375.3

 

 

 
375.3

Tradename intangible asset
 

 
3,100.0

 

 

 
3,100.0

Other intangible assets, net
 

 
4.8

 

 

 
4.8

Investment in subsidiaries
 
9,748.8

 
108.2

 

 
(9,857.0
)
 

Intercompany note receivable
 
1,801.4

 

 
188.8

 
(1,990.2
)
 

Due from intercompany, net
 
1,310.7

 

 

 
(1,310.7
)
 

Other assets
 

 
42.3

 
2.9

 
(2.7
)
 
42.5

Total assets
 
$
13,096.4

 
$
16,527.4

 
$
676.2

 
$
(13,967.2
)
 
$
16,332.8

LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

Current liabilities:
 
 

 
 

 
 

 
 

 
 

Current portion of long-term debt
 
$
915.9

 
$

 
$

 
$

 
$
915.9

Accounts payable
 

 
1,162.0

 
11.9

 
0.9

 
1,174.8

Due to intercompany, net
 
524.0

 
216.5

 
66.1

 
(806.6
)
 

Income taxes payable
 
(27.2
)
 
50.7

 
8.0

 

 
31.5

Other current liabilities
 
43.9

 
398.2

 
294.8

 

 
736.9

Total current liabilities
 
1,456.6

 
1,827.4

 
380.8

 
(805.7
)
 
2,859.1

Long-term debt, net, excluding
   current portion
 
4,455.4

 
306.7

 

 

 
4,762.1

Unfavorable lease rights, net
 

 
100.0

 

 

 
100.0

Deferred tax liabilities, net
 
1.9

 
983.3

 

 

 
985.2

Income taxes payable, long-term
 

 
43.8

 

 

 
43.8

Due to intercompany, net
 

 
1,310.7

 

 
(1,310.7
)
 

Intercompany note payable
 

 
1,990.2

 

 
(1,990.2
)
 

Other liabilities
 
0.2

 
305.1

 
98.6

 
(3.6
)
 
400.3

Total liabilities
 
5,914.1

 
6,867.2

 
479.4

 
(4,110.2
)
 
9,150.5

Shareholders' equity
 
7,182.3

 
9,660.2

 
196.8

 
(9,857.0
)
 
7,182.3

Total liabilities and equity
 
$
13,096.4

 
$
16,527.4

 
$
676.2

 
$
(13,967.2
)
 
$
16,332.8

Condensed Consolidating Balance Sheets (Continued)
 
 
January 28, 2017
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidating
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
562.4

 
$
139.2

 
$
164.8

 
$

 
$
866.4

Short-term investments
 

 

 
4.0

 

 
4.0

Merchandise inventories, net
 

 
2,826.3

 
41.2

 
(1.7
)
 
2,865.8

Current deferred tax assets, net
 

 
(9.3
)
 
9.3

 

 

Due from intercompany, net
 
58.7

 
1,041.5

 
42.8

 
(1,143.0
)
 

Other current assets
 
0.5

 
198.7

 
2.3

 
0.3

 
201.8

Total current assets
 
621.6

 
4,196.4

 
264.4

 
(1,144.4
)
 
3,938.0

Property, plant and equipment, net
 

 
3,085.3

 
30.5

 

 
3,115.8

Assets available for sale
 

 
9.0

 

 

 
9.0

Goodwill
 

 
4,993.1

 
30.4

 

 
5,023.5

Favorable lease rights, net
 

 
468.6

 

 

 
468.6

Tradename intangible asset
 

 
3,100.0

 

 

 
3,100.0

Other intangible assets, net
 

 
5.1

 

 

 
5.1

Investment in subsidiaries
 
8,640.1

 
106.6

 

 
(8,746.7
)
 

Intercompany note receivable
 
1,926.4

 

 
188.8

 
(2,115.2
)
 

Due from intercompany, net
 
1,243.8

 

 

 
(1,243.8
)
 

Other assets
 

 
41.3

 
3.3

 
(3.0
)
 
41.6

Total assets
 
$
12,431.9

 
$
16,005.4

 
$
517.4

 
$
(13,253.1
)
 
$
15,701.6

LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

Current liabilities:
 
 

 
 

 
 

 
 

 
 

Current portion of long-term debt
 
$
152.1

 
$

 
$

 
$

 
$
152.1

Accounts payable
 

 
1,105.9

 
14.7

 
(1.0
)
 
1,119.6

Due to intercompany, net
 
969.6

 
121.5

 
51.9

 
(1,143.0
)
 

Other current liabilities
 
66.4

 
470.5

 
207.3

 

 
744.2

Income taxes payable
 
(1.9
)
 
91.0

 
0.9

 

 
90.0

Total current liabilities
 
1,186.2

 
1,788.9

 
274.8

 
(1,144.0
)
 
2,105.9

Long-term debt, net, excluding
   current portion
 
5,853.9

 
315.8

 

 

 
6,169.7

Unfavorable lease rights, net
 

 
124.0

 

 

 
124.0

Deferred tax liabilities, net
 
2.0

 
1,456.9

 

 

 
1,458.9

Income taxes payable, long-term
 

 
71.2

 

 

 
71.2

Due to intercompany, net
 

 
1,243.8

 

 
(1,243.8
)
 

Intercompany note payable
 

 
2,115.2

 

 
(2,115.2
)
 

Other liabilities
 

 
377.5

 
8.1

 
(3.2
)
 
382.4

Total liabilities
 
7,042.1

 
7,493.3

 
282.9

 
(4,506.2
)
 
10,312.1

Shareholders' equity
 
5,389.8

 
8,512.1

 
234.5

 
(8,746.9
)
 
5,389.5

Total liabilities and equity
 
$
12,431.9

 
$
16,005.4

 
$
517.4

 
$
(13,253.1
)
 
$
15,701.6

Condensed Cash Flow Statement
Condensed Consolidating Statements of Cash Flows
 
 
Year Ended February 3, 2018
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidating
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
Net cash provided by operating activities
 
$
222.3

 
$
1,908.5

 
$
153.3

 
$
(773.9
)
 
$
1,510.2

Cash flows from investing activities:
 
 

 
 

 
 
 
 
 
 
Capital expenditures
 

 
(631.0
)
 
(1.2
)
 

 
(632.2
)
Proceeds from sale of restricted and
   unrestricted investments
 

 

 
4.0

 

 
4.0

Other
 

 
0.3

 

 

 
0.3

Net cash provided by (used in)
   investing activities
 

 
(630.7
)
 
2.8

 

 
(627.9
)
Cash flows from financing activities:
 
 

 
 

 
 
 
 
 
 
Principal payments for long-term debt
 
(659.1
)
 

 

 

 
(659.1
)
Dividends paid
 

 
(716.9
)
 
(57.0
)
 
773.9

 

Proceeds from stock issued pursuant to
   stock-based compensation plans
 
35.0

 

 

 

 
35.0

Cash paid for taxes on exercises/vesting of
   stock-based compensation
 
(27.4
)
 

 

 

 
(27.4
)
Net cash used in financing activities
 
(651.5
)
 
(716.9
)
 
(57.0
)
 
773.9

 
(651.5
)
Effect of exchange rate changes on cash and
   cash equivalents
 

 

 
0.6

 

 
0.6

Net (decrease) increase in cash and cash
   equivalents
 
(429.2
)
 
560.9

 
99.7

 

 
231.4

Cash and cash equivalents at beginning of
   period
 
562.4

 
139.2

 
164.8

 

 
866.4

Cash and cash equivalents at end of period
 
$
133.2

 
$
700.1

 
$
264.5

 
$

 
$
1,097.8

Condensed Consolidating Statements of Cash Flows (continued)
 
 
Year Ended January 28, 2017
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidating
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
Net cash provided by operating activities
 
$
2,022.9

 
$
1,121.1

 
$
71.5

 
$
(1,542.2
)
 
$
1,673.3

Cash flows from investing activities:
 
 

 
 

 
 
 
 
 
 
Capital expenditures
 

 
(563.4
)
 
(1.3
)
 

 
(564.7
)
Purchase of restricted investments
 

 
(36.1
)
 

 

 
(36.1
)
Proceeds from sale of restricted
   investments
 

 
118.1

 

 

 
118.1

Other
 

 
(0.9
)
 

 

 
(0.9
)
Net cash used in investing activities
 

 
(482.3
)
 
(1.3
)
 

 
(483.6
)
Cash flows from financing activities:
 
 

 
 

 
 
 
 
 
 
Principal payments for long-term debt
 
(4,036.2
)
 

 

 

 
(4,036.2
)
Proceeds from long-term debt, net of
   discount
 
2,962.5

 

 

 

 
2,962.5

Repayments of revolving credit facility
 
(140.0
)
 

 

 

 
(140.0
)
Proceeds from revolving credit facility
 
140.0

 

 

 

 
140.0

Net intercompany note activity
 
(400.0
)
 
400.0

 

 

 

Dividends paid
 

 
(1,536.5
)
 
(23.0
)
 
1,559.5

 

Proceeds from stock issued pursuant to
   stock-based compensation plans
 
41.5

 

 

 

 
41.5

Cash paid for taxes on exercises/vesting of
   stock-based compensation
 
(22.2
)
 

 

 

 
(22.2
)
Other
 
(6.1
)
 

 

 

 
(6.1
)
Net cash used in financing activities
 
(1,460.5
)
 
(1,136.5
)
 
(23.0
)
 
1,559.5

 
(1,060.5
)
Effect of exchange rate changes on cash and
   cash equivalents
 

 

 
1.1

 

 
1.1

Net (decrease) increase in cash and cash
   equivalents
 
562.4

 
(497.7
)
 
48.3

 
17.3

 
130.3

Cash and cash equivalents at beginning of
   period
 

 
636.9

 
116.5

 
(17.3
)
 
736.1

Cash and cash equivalents at end of period
 
$
562.4

 
$
139.2

 
$
164.8

 
$

 
$
866.4

Condensed Consolidating Statements of Cash Flows (continued)
 
 
Year Ended January 30, 2016
 
 
 
 
Guarantor
 
Non-Guarantor
 
Consolidating
 
Consolidated
(in millions)
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Company
Net cash provided by (used in) operating
   activities
 
$
765.1

 
$
720.8

 
$
(19.4
)
 
$
(664.0
)
 
$
802.5

Cash flows from investing activities:
 
 

 
 

 
 
 
 
 
 
Capital expenditures
 

 
(475.7
)
 
(4.8
)
 

 
(480.5
)
Acquisition of Family Dollar, net of
   common stock issued, equity
   compensation and cash acquired
 
(6,833.0
)
 
207.3

 
98.0

 

 
(6,527.7
)
Other
 

 
(7.5
)
 
37.3

 

 
29.8

Net cash provided by (used in)
   investing activities
 
(6,833.0
)
 
(275.9
)
 
130.5

 

 
(6,978.4
)
Cash flows from financing activities:
 
 

 
 

 
 
 
 
 
 
Principal payments for long-term debt
 
(4,991.5
)
 
(935.2
)
 

 

 
(5,926.7
)
Proceeds from long-term debt, net of
   discount
 
12,130.2

 

 

 

 
12,130.2

Net intercompany note activity
 
(1,109.6
)
 
1,109.6

 

 

 

Dividends paid
 

 
(646.7
)
 

 
646.7

 

Debt-issuance costs
 
(159.8
)
 

 

 

 
(159.8
)
Cash paid for taxes on exercises/vesting of
   stock-based compensation
 
(21.6
)
 

 

 

 
(21.6
)
Other
 
26.7

 

 

 

 
26.7

Net cash provided by (used in)
   financing activities
 
5,874.4

 
(472.3
)
 

 
646.7

 
6,048.8

Effect of exchange rate changes on cash and
   cash equivalents
 

 

 
(0.9
)
 

 
(0.9
)
Net (decrease) increase in cash and cash
   equivalents
 
(193.5
)
 
(27.4
)
 
110.2

 
(17.3
)
 
(128.0
)
Cash and cash equivalents at beginning of
   period
 
193.5

 
664.3

 
6.3

 

 
864.1

Cash and cash equivalents at end of period
 
$

 
$
636.9

 
$
116.5

 
$
(17.3
)
 
$
736.1