Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS

v3.8.0.1
SEGMENTS
 3 Months Ended
May 05, 2018
Segment Reporting [Abstract]  
SEGMENTS
SEGMENTS
The Company operates a chain of more than 14,900 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 chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources.
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” and “Dollar Tree Canada” brands, 11 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 retail discount 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, 11 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. The Company may revise the measurement of each segment’s operating income, 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.
Net sales by segment are as follows:
 
 
13 Weeks Ended
 
 
May 5,
 
April 29,
(in millions)
 
2018
 
2017
Net sales:
 
 
 
 
     Dollar Tree
 
$
2,784.5

 
$
2,571.7

Family Dollar
 
2,769.2

 
2,715.4

Total net sales
 
$
5,553.7

 
$
5,287.1


Gross profit by segment is as follows:
 
 
13 Weeks Ended
 
 
May 5,
 
April 29,
(in millions)
 
2018
 
2017
Gross profit:
 
 
 
 
     Dollar Tree
 
$
960.8

 
$
896.6

Family Dollar
 
738.8

 
730.5

Total gross profit
 
$
1,699.6

 
$
1,627.1


Depreciation and amortization expense by segment is as follows:
 
 
13 Weeks Ended
 
 
May 5,
 
April 29,
(in millions)
 
2018
 
2017
Depreciation and amortization expense:
 
 
 
 
     Dollar Tree
 
$
64.0

 
$
61.5

Family Dollar
 
87.6

 
92.4

Total depreciation and amortization expense
 
$
151.6

 
$
153.9

Operating income by segment is as follows:
 
 
13 Weeks Ended
 
 
May 5,
 
April 29,
(in millions)
 
2018
 
2017
Operating income:
 
 
 
 
     Dollar Tree
 
$
330.2

 
$
315.4

Family Dollar
 
107.4

 
73.4

Total operating income
 
$
437.6

 
$
388.8


Capital expenditures by segment are as follows:
 
 
13 Weeks Ended
 
 
May 5,
 
April 29,
(in millions)
 
2018
 
2017
Capital expenditures:
 
 
 
 
     Dollar Tree
 
$
117.2

 
$
65.7

Family Dollar
 
63.7

 
44.6

Total capital expenditures
 
$
180.9

 
$
110.3

Total assets by segment are as follows:
 
 
As of
 
 
May 5,
 
February 3,
 
April 29,
(in millions)
 
2018
 
2018
 
2017
Total assets:
 
 
 
 
 
 
     Dollar Tree
 
$
3,737.4

 
$
4,113.4

 
$
3,906.4

Family Dollar
 
12,089.7

 
12,219.4

 
12,088.3

Total assets
 
$
15,827.1

 
$
16,332.8

 
$
15,994.7


Total goodwill by segment is as follows:
 
 
As of
 
 
May 5,
 
February 3,
 
April 29,
(in millions)
 
2018
 
2018
 
2017
Total goodwill:
 
 
 
 
 
 
     Dollar Tree
 
$
346.1

 
$
347.1

 
$
344.3

Family Dollar
 
4,678.1

 
4,678.1

 
4,678.1

Total goodwill
 
$
5,024.2

 
$
5,025.2

 
$
5,022.4