x
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware
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56-0942963
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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10401 Monroe Road, Matthews, North Carolina
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28105
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
|
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Name of each exchange on which registered
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|
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Common Stock, $.10 Par Value
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Page No.
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Part I
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|
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General Information and Cautionary Statement Regarding Forward-Looking Statements
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Part II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Part III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Part IV
|
|
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Item 15.
|
•
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Expanded key consumable categories and created more intuitive merchandise adjacencies;
|
•
|
Improved navigational signage and leveraged new fixtures that enhance customer sightlines, increase capacity and simplify restocking and recovery processes;
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•
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Created a warmer, more inviting shopping environment that includes a refresh of the building façade and exterior signage and improved store standards;
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•
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Improved store operating processes and leveraged technology to increase workforce productivity; and
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•
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Raised our customer service standards by strengthening our team member engagement with enhanced training, improved recognition programs, and more consistent team member branding.
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Consumables
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Household chemicals
|
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Paper products
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Food
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Health and beauty aids
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Hardware and automotive supplies
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Pet food and supplies
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Tobacco
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Home Products
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Domestics, including blankets, sheets and towels
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Housewares
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Giftware
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Home décor
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Apparel and Accessories
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Men’s clothing
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Women’s clothing
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Boys’ and girls’ clothing
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Infants’ clothing
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Shoes
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Fashion accessories
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Seasonal and Electronics
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Toys
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Stationery and school supplies
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Seasonal goods
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Personal electronics, including pre-paid cellular phones and services
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Distribution Center
|
Number of Stores
Served
|
|
Matthews, NC
|
703
|
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West Memphis, AR
|
623
|
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Front Royal, VA
|
741
|
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Duncan, OK
|
773
|
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Morehead, KY
|
834
|
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Maquoketa, IA
|
704
|
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Odessa, TX
|
759
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Marianna, FL
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888
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Rome, NY
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812
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Ashley, IN
|
605
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Total
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7,442
|
|
▪
|
political and economic instability;
|
▪
|
the financial instability and labor problems of suppliers;
|
▪
|
the availability of raw materials;
|
▪
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merchandise quality issues;
|
▪
|
changes in currency exchange rates; and
|
▪
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transportation availability and cost.
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Texas
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946
|
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Arkansas
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107
|
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Florida
|
518
|
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Massachusetts
|
107
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Ohio
|
451
|
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New Jersey
|
103
|
|
North Carolina
|
401
|
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Maryland
|
100
|
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Michigan
|
387
|
|
Missouri
|
99
|
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Georgia
|
358
|
|
Minnesota
|
69
|
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New York
|
315
|
|
Utah
|
62
|
|
Pennsylvania
|
290
|
|
Connecticut
|
56
|
|
Louisiana
|
274
|
|
Maine
|
54
|
|
Tennessee
|
235
|
|
Kansas
|
46
|
|
Virginia
|
234
|
|
California
|
44
|
|
Illinois
|
231
|
|
Nevada
|
38
|
|
South Carolina
|
212
|
|
Idaho
|
36
|
|
Indiana
|
205
|
|
Iowa
|
36
|
|
Kentucky
|
200
|
|
New Hampshire
|
33
|
|
Alabama
|
159
|
|
Nebraska
|
32
|
|
Arizona
|
145
|
|
Rhode Island
|
26
|
|
Mississippi
|
143
|
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South Dakota
|
25
|
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Wisconsin
|
136
|
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Wyoming
|
24
|
|
Oklahoma
|
132
|
|
Delaware
|
23
|
|
Colorado
|
124
|
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North Dakota
|
16
|
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West Virginia
|
120
|
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Vermont
|
12
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New Mexico
|
108
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District of Columbia
|
3
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Fiscal Year
|
Number of
Stores at
Year End
|
|
2008
|
6,571
|
|
2009
|
6,655
|
|
2010
|
6,785
|
|
2011
|
7,023
|
|
2012
|
7,442
|
|
Fiscal Years
|
Approximate Number
of Leases Expiring
Assuming No Exercise
of Renewal Options
|
|
Approximate Number
of Leases Expiring
Assuming Full
Exercise of Renewal
Options
|
||
2013
|
892
|
|
|
75
|
|
2014-2016
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3,413
|
|
|
269
|
|
2017-2019
|
1,651
|
|
|
359
|
|
2020-2022
|
784
|
|
|
489
|
|
2023 and thereafter
|
368
|
|
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5,916
|
|
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Facility Size
|
|
|
||
Distribution Center
|
Land
|
|
Building
|
|
Date Operational
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West Memphis, AR
|
75 acres
|
|
850,000 sq. ft.
|
|
April 1994
|
Front Royal, VA
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108 acres
|
|
907,000 sq. ft.
|
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January 1998
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Duncan, OK
|
85 acres
|
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907,000 sq. ft.
|
|
July 1999
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Morehead, KY
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94 acres
|
|
907,000 sq. ft.
|
|
June 2000
|
Maquoketa, IA
|
74 acres
|
|
907,000 sq. ft.
|
|
March 2002
|
Odessa, TX
|
89 acres
|
|
907,000 sq. ft.
|
|
July 2003
|
Marianna, FL
|
76 acres
|
|
907,000 sq. ft.
|
|
January 2005
|
Rome, NY
|
87 acres
|
|
907,000 sq. ft.
|
|
April 2006
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Ashley, IN
|
89 acres
|
|
814,019 sq. ft.
|
|
June 2012
|
Name
|
|
Position and Office
|
|
Age
|
|
Howard R. Levine
|
|
Chairman of the Board and Chief Executive Officer
|
|
53
|
|
Michael K. Bloom
|
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President and Chief Operating Officer
|
|
52
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Charles S. Gibson, Jr.
|
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Executive Vice President - Supply Chain
|
|
51
|
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Barry W. Sullivan
|
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Executive Vice President - Store Operations
|
|
48
|
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Paul G. White
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Executive Vice President - Chief Merchandising Officer
|
|
56
|
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Mary A. Winston
|
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Executive Vice President - Chief Financial Officer
|
|
50
|
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James C. Snyder, Jr.
|
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Senior Vice President - General Counsel and Secretary
|
|
48
|
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Bryan E. Venberg
|
|
Senior Vice President - Human Resources
|
|
44
|
|
2012
|
High
|
|
Low
|
|
Dividends Declared
|
|
Dividends Paid
|
||||||
First Quarter
|
$
|
60.53
|
|
|
$
|
47.99
|
|
|
.18
|
|
|
.18
|
|
Second Quarter
|
59.99
|
|
|
53.03
|
|
|
.21
|
|
|
.18
|
|
||
Third Quarter
|
70.00
|
|
|
53.42
|
|
|
.21
|
|
|
.21
|
|
||
Fourth Quarter
(1)
|
74.73
|
|
|
61.67
|
|
|
—
|
|
|
.21
|
|
||
2011
|
High
|
|
Low
|
|
Dividends Declared
|
|
Dividends Paid
|
||||||
First Quarter
|
$
|
51.13
|
|
|
$
|
42.15
|
|
|
.15 1/2
|
|
|
.15 1/2
|
|
Second Quarter
|
55.62
|
|
|
41.31
|
|
|
.18
|
|
|
.15 1/2
|
|
||
Third Quarter
|
56.92
|
|
|
48.95
|
|
|
.18
|
|
|
.18
|
|
||
Fourth Quarter
|
56.25
|
|
|
44.42
|
|
|
.18
|
|
|
.18
|
|
(1)
|
On September 4, 2012, subsequent to the end of fiscal 2012, the Board of Directors declared a regular quarterly cash dividend on the Company’s common stock of $0.21 per share, payable Monday, October 15, 2012, to shareholders of record at the close of business on Friday, September 14, 2012.
|
Period
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
(1)
|
|
Maximum Number of
Shares that May Yet Be
Purchased Under the
Plans or Programs
(1)(2)
|
|||||
June (5/27/12-6/30/12)
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
3,696,518
|
|
July (7/1/12-7/28/12)
|
783,469
|
|
|
66.59
|
|
|
783,469
|
|
|
2,905,240
|
|
|
August (7/29/12-8/25/12)
|
725,995
|
|
|
65.88
|
|
|
725,995
|
|
|
2,337,523
|
|
|
Total
|
1,509,464
|
|
|
$
|
66.25
|
|
|
1,509,464
|
|
|
2,337,523
|
|
(1)
|
On September 26, 2011, we announced that the Board of Directors authorized the purchase of up to $250 million of our outstanding common stock. There was $145.7 million remaining under this authorization as of
August 25, 2012
.
|
(2)
|
Remaining dollar amounts are converted to shares using the closing stock price as of the end of the fiscal month.
|
|
Years Ended
|
||||||||||||||||||
(in thousands, except per share, store,
and net sales per square foot data)
|
August 25,
2012
|
|
|
August 27,
2011
|
|
|
August 28,
2010
|
|
|
August 29,
2009
|
|
|
August 30,
2008
|
|
|||||
Net sales
|
$
|
9,331,005
|
|
|
$
|
8,547,835
|
|
|
$
|
7,866,971
|
|
|
$
|
7,400,606
|
|
|
$
|
6,983,628
|
|
Cost of sales
|
6,071,058
|
|
|
5,515,540
|
|
|
5,058,971
|
|
|
4,822,401
|
|
|
4,637,826
|
|
|||||
|
3,259,947
|
|
|
3,032,295
|
|
|
2,808,000
|
|
|
2,578,205
|
|
|
2,345,802
|
|
|||||
Selling, general and administrative expenses
|
2,560,346
|
|
|
2,394,223
|
|
|
2,232,402
|
|
|
2,120,936
|
|
|
1,980,496
|
|
|||||
Litigation charge
(1)
|
11,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Operating profit
|
688,101
|
|
|
638,072
|
|
|
575,598
|
|
|
457,269
|
|
|
365,306
|
|
|||||
Income before income taxes
|
663,938
|
|
|
617,158
|
|
|
563,858
|
|
|
450,925
|
|
|
361,762
|
|
|||||
Income taxes
|
241,698
|
|
|
228,713
|
|
|
205,723
|
|
|
159,659
|
|
|
128,689
|
|
|||||
Net income
|
422,240
|
|
|
388,445
|
|
|
358,135
|
|
|
291,266
|
|
|
233,073
|
|
|||||
Diluted net income per common share
|
$
|
3.58
|
|
|
$
|
3.12
|
|
|
$
|
2.62
|
|
|
$
|
2.07
|
|
|
$
|
1.66
|
|
Dividends declared
|
70,302
|
|
|
84,342
|
|
|
80,394
|
|
|
74,013
|
|
|
68,537
|
|
|||||
Dividends declared per common share
|
0.600
|
|
|
0.695
|
|
|
0.600
|
|
|
0.530
|
|
|
0.490
|
|
|||||
Cash dividends paid
|
91,390
|
|
|
83,439
|
|
|
78,913
|
|
|
72,738
|
|
|
67,408
|
|
|||||
Cash dividends paid per common share
|
0.780
|
|
|
0.670
|
|
|
0.580
|
|
|
0.520
|
|
|
0.480
|
|
|||||
Comparable store sales growth
(2)
|
4.7
|
%
|
|
5.5
|
%
|
|
4.8
|
%
|
|
4.0
|
%
|
|
1.2
|
%
|
|||||
Ending selling square feet
|
53,207
|
|
|
49,996
|
|
|
48,225
|
|
|
47,120
|
|
|
46,324
|
|
|||||
Net sales per square foot
(3)
|
$
|
181
|
|
|
$
|
174
|
|
|
$
|
165
|
|
|
$
|
158
|
|
|
$
|
152
|
|
Consumables sales
|
69.0
|
%
|
|
66.5
|
%
|
|
65.1
|
%
|
|
64.4
|
%
|
|
61.0
|
%
|
|||||
Home products sales
|
11.4
|
%
|
|
12.7
|
%
|
|
13.2
|
%
|
|
13.4
|
%
|
|
14.4
|
%
|
|||||
Apparel and accessories sales
|
8.8
|
%
|
|
10.0
|
%
|
|
10.7
|
%
|
|
11.2
|
%
|
|
13.1
|
%
|
|||||
Seasonal and electronics sales
|
10.8
|
%
|
|
10.8
|
%
|
|
11.0
|
%
|
|
11.0
|
%
|
|
11.5
|
%
|
|||||
Net cash provided by (used in):
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
$
|
369,371
|
|
|
$
|
528,064
|
|
|
$
|
591,539
|
|
|
$
|
529,199
|
|
|
$
|
515,738
|
|
Investing activities
|
(198,311
|
)
|
|
(280,418
|
)
|
|
(306,948
|
)
|
|
(109,355
|
)
|
|
(199,556
|
)
|
|||||
Financing activities
|
(220,132
|
)
|
|
(488,995
|
)
|
|
(340,727
|
)
|
|
(139,456
|
)
|
|
(244,856
|
)
|
|||||
Total capital expenditures
|
(603,313
|
)
|
|
(345,268
|
)
|
|
(212,435
|
)
|
|
(155,401
|
)
|
|
(167,932
|
)
|
|||||
Total repurchases of common stock
|
(191,573
|
)
|
|
(670,466
|
)
|
|
(332,189
|
)
|
|
(71,067
|
)
|
|
(97,674
|
)
|
|||||
Total assets
|
$
|
3,373,065
|
|
|
$
|
2,996,205
|
|
|
$
|
2,968,145
|
|
|
$
|
2,864,112
|
|
|
$
|
2,689,354
|
|
Working capital
|
702,513
|
|
|
516,789
|
|
|
641,527
|
|
|
718,509
|
|
|
453,806
|
|
|||||
Long-term investment securities
|
23,720
|
|
|
107,458
|
|
|
147,108
|
|
|
163,545
|
|
|
222,104
|
|
|||||
Long-term debt
|
532,520
|
|
|
548,570
|
|
|
250,000
|
|
|
250,000
|
|
|
250,000
|
|
|||||
Shareholders’ equity
|
1,297,627
|
|
|
1,087,074
|
|
|
1,421,554
|
|
|
1,440,060
|
|
|
1,254,083
|
|
|||||
Stores opened
|
475
|
|
|
300
|
|
|
200
|
|
|
180
|
|
|
205
|
|
|||||
Stores closed
|
56
|
|
|
62
|
|
|
70
|
|
|
96
|
|
|
64
|
|
|||||
Number of stores—end of year
|
7,442
|
|
|
7,023
|
|
|
6,785
|
|
|
6,655
|
|
|
6,571
|
|
(1)
|
Fiscal 2012 includes the impact of a litigation charge of $11.5 million (approximately $0.06 per diluted share) recorded in the fourth quarter of fiscal 2012.
|
(2)
|
Comparable store sales include stores that have been open more than 13 months. Stores that have been renovated, relocated or expanded are included in the comparable store sales calculation to the extent that they had sales during comparable weeks in each year.
|
(3)
|
Net sales per square foot was calculated based on total sales for the preceding 12 months as of the ending date of the reporting period divided by the average selling square footage during the period, including the end of the fiscal year, the beginning of the fiscal year, and the end of each of our three interim fiscal quarters.
|
•
|
We accelerated our new store growth and increased our store openings by more than 50% from fiscal
2011
to 475 stores, including our first stores in California.
|
•
|
We renovated, relocated or expanded 854 stores under our comprehensive store renovation program. This program is intended to increase our competitiveness and sales productivity by transforming the customer’s shopping experience in a Family Dollar store. As a part of this program, we: expanded key consumable categories and created more intuitive merchandise adjacencies; improved the navigational signage; leveraged new fixtures that enhance customer sightlines, increase capacity, and simplify restocking and recovery processes; created a warmer, more inviting shopping environment that includes a refresh of the building façade and exterior signage; raised store standards; improved store operating processes and leveraged technology to increase workforce productivity; and raised our customer service standards by strengthening our team member engagement with enhanced training, improved recognition programs and more consistent team member branding.
|
•
|
With a strong focus on increasing our relevancy with customers and driving sales productivity, we significantly expanded our merchandise selection in both food and health and beauty aids and added new consumer brands.
|
•
|
We added tobacco products to our assortment in fiscal 2012. Based on our customer research, our customers are more likely to use tobacco products, and our customers who smoke make more shopping trips per year. With the addition of
|
•
|
We made significant progress in increasing our penetration of private brands. In fiscal
2012
, private brands sales increased by approximately 9% over fiscal
2011
. Private brands consumable sales performed especially well, increasing by 16% over fiscal
2011
. In fiscal
2012
, private brands sales represented approximately 25% of total sales and approximately 17% of total consumable sales.
|
|
Years Ended
|
||||||||||||||||
(in thousands)
|
August 25, 2012
|
% of Net Sales
|
|
August 27, 2011
|
% of Net Sales
|
|
August 28, 2010
|
% of Net Sales
|
|||||||||
Net sales
|
$
|
9,331,005
|
|
|
|
$
|
8,547,835
|
|
|
|
$
|
7,866,971
|
|
|
|||
Cost and expenses:
|
|
|
|
|
|
|
|
|
|||||||||
Cost of sales
|
6,071,058
|
|
65.1
|
%
|
|
5,515,540
|
|
64.5
|
%
|
|
5,058,971
|
|
64.3
|
%
|
|||
Selling, general and administrative
|
2,560,346
|
|
27.4
|
%
|
|
2,394,223
|
|
28.0
|
%
|
|
2,232,402
|
|
28.4
|
%
|
|||
Litigation charge
|
11,500
|
|
0.1
|
%
|
|
—
|
|
0.0
|
%
|
|
—
|
|
0.0
|
%
|
|||
Cost of sales and operating expenses
|
8,642,904
|
|
92.6
|
%
|
|
7,909,763
|
|
92.5
|
%
|
|
7,291,373
|
|
92.7
|
%
|
|||
Operating profit
|
688,101
|
|
7.4
|
%
|
|
638,072
|
|
7.5
|
%
|
|
575,598
|
|
7.3
|
%
|
|||
Investment income
|
927
|
|
0.0
|
%
|
|
1,532
|
|
0.0
|
%
|
|
1,597
|
|
0.0
|
%
|
|||
Interest expense
|
25,090
|
|
0.3
|
%
|
|
22,446
|
|
0.3
|
%
|
|
13,337
|
|
0.2
|
%
|
|||
Income before income taxes
|
663,938
|
|
7.1
|
%
|
|
617,158
|
|
7.2
|
%
|
|
563,858
|
|
7.2
|
%
|
|||
Income taxes
|
241,698
|
|
2.6
|
%
|
|
228,713
|
|
2.7
|
%
|
|
205,723
|
|
2.6
|
%
|
|||
Net Income
|
$
|
422,240
|
|
4.5
|
%
|
|
$
|
388,445
|
|
4.5
|
%
|
|
$
|
358,135
|
|
4.6
|
%
|
|
Payments Due During the Period Ending
|
||||||||||||||||||||||||||
(in thousands)
Contractual Obligations
|
Total
|
|
August
2013
|
|
|
August
2014
|
|
|
August
2015
|
|
|
August
2016
|
|
|
August
2017
|
|
|
Thereafter
|
|||||||||
Long-term debt
|
$
|
533,800
|
|
|
$
|
16,200
|
|
|
$
|
16,200
|
|
|
$
|
16,200
|
|
|
$
|
185,200
|
|
|
$
|
—
|
|
|
$
|
300,000
|
|
Interest
|
166,291
|
|
|
26,760
|
|
|
25,911
|
|
|
25,063
|
|
|
21,057
|
|
|
15,000
|
|
|
52,500
|
|
|||||||
Merchandise letters of credit
|
118,306
|
|
|
118,306
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Operating leases
|
2,745,273
|
|
|
431,076
|
|
|
389,754
|
|
|
341,291
|
|
|
291,793
|
|
|
244,843
|
|
|
1,046,516
|
|
|||||||
Construction obligations
|
95,625
|
|
|
95,625
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Minimum royalties
(1)
|
6,300
|
|
|
2,800
|
|
|
2,800
|
|
|
700
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
$
|
3,665,595
|
|
|
$
|
690,767
|
|
|
$
|
434,665
|
|
|
$
|
383,254
|
|
|
$
|
498,050
|
|
|
$
|
259,843
|
|
|
$
|
1,399,016
|
|
(1)
|
Minimum royalty payments related to an exclusive agreement to sell certain branded merchandise.
|
Other Commercial Commitments
(in thousands)
|
Total Amounts
Committed
|
||
Standby letters of credit
|
$
|
26,054
|
|
Surety bonds
|
46,529
|
|
|
Total
|
$
|
72,583
|
|
|
Page No.
|
|
Years Ended
|
||||||||||
(in thousands, except per share amounts)
|
August 25, 2012
|
|
August 27, 2011
|
|
August 28, 2010
|
||||||
Net sales
|
$
|
9,331,005
|
|
|
$
|
8,547,835
|
|
|
$
|
7,866,971
|
|
Cost and expenses:
|
|
|
|
|
|
||||||
Cost of sales
|
6,071,058
|
|
|
5,515,540
|
|
|
5,058,971
|
|
|||
Selling, general and administrative
|
2,560,346
|
|
|
2,394,223
|
|
|
2,232,402
|
|
|||
Litigation charge
|
11,500
|
|
|
—
|
|
|
—
|
|
|||
Cost of sales and operating expenses
|
8,642,904
|
|
|
7,909,763
|
|
|
7,291,373
|
|
|||
Operating profit
|
688,101
|
|
|
638,072
|
|
|
575,598
|
|
|||
Investment income
|
927
|
|
|
1,532
|
|
|
1,597
|
|
|||
Interest expense
|
25,090
|
|
|
22,446
|
|
|
13,337
|
|
|||
Income before income taxes
|
663,938
|
|
|
617,158
|
|
|
563,858
|
|
|||
Income taxes
|
241,698
|
|
|
228,713
|
|
|
205,723
|
|
|||
Net income
|
$
|
422,240
|
|
|
$
|
388,445
|
|
|
$
|
358,135
|
|
Net income per common share—basic
|
$
|
3.61
|
|
|
$
|
3.15
|
|
|
$
|
2.64
|
|
Weighted average shares—basic
|
117,097
|
|
|
123,360
|
|
|
135,745
|
|
|||
Net income per common share—diluted
|
$
|
3.58
|
|
|
$
|
3.12
|
|
|
$
|
2.62
|
|
Weighted average shares—diluted
|
118,058
|
|
|
124,486
|
|
|
136,596
|
|
|
Years Ended
|
||||||||||
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
|
August 28, 2010
|
||||||
Net income
|
$
|
422,240
|
|
|
$
|
388,445
|
|
|
$
|
358,135
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Unrealized gains on investment securities (net of taxes of $2.7 million, $0.6 million, and $1.2 million in fiscal 2012, fiscal 2011, and fiscal 2010, respectively)
|
4,527
|
|
|
904
|
|
|
1,914
|
|
|||
Other
|
35
|
|
|
(261
|
)
|
|
—
|
|
|||
Comprehensive income
|
$
|
426,802
|
|
|
$
|
389,088
|
|
|
$
|
360,049
|
|
(in thousands, except per share and share amounts)
|
August 25,
2012 |
|
August 27,
2011 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
92,333
|
|
|
$
|
141,405
|
|
Short-term investment securities
|
6,271
|
|
|
96,006
|
|
||
Restricted cash and investments
|
126,281
|
|
|
—
|
|
||
Merchandise inventories
|
1,426,163
|
|
|
1,154,660
|
|
||
Deferred income taxes
|
69,518
|
|
|
60,011
|
|
||
Income tax refund receivable
|
—
|
|
|
10,326
|
|
||
Prepayments and other current assets
|
47,604
|
|
|
71,436
|
|
||
Total current assets
|
1,768,170
|
|
|
1,533,844
|
|
||
Property and equipment, net
|
1,496,360
|
|
|
1,280,589
|
|
||
Investment securities
|
23,720
|
|
|
107,458
|
|
||
Other assets
|
84,815
|
|
|
74,314
|
|
||
Total assets
|
$
|
3,373,065
|
|
|
$
|
2,996,205
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term borrowings
|
$
|
15,000
|
|
|
$
|
—
|
|
Current portion of long-term debt
|
16,200
|
|
|
16,200
|
|
||
Accounts payable
|
674,202
|
|
|
685,063
|
|
||
Accrued liabilities
|
328,398
|
|
|
310,818
|
|
||
Income taxes
|
31,857
|
|
|
4,974
|
|
||
Total current liabilities
|
1,065,657
|
|
|
1,017,055
|
|
||
Long-term debt
|
516,320
|
|
|
532,370
|
|
||
Other liabilities
|
268,341
|
|
|
270,466
|
|
||
Deferred gain (Note 6)
|
156,866
|
|
|
—
|
|
||
Deferred income taxes
|
68,254
|
|
|
89,240
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
||||
Shareholders’ equity (Note 13):
|
|
|
|
||||
Preferred stock, $1 par; authorized 500,000 shares; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $.10 par; authorized 600,000,000 shares; issued 119,125,739 shares at August 25, 2012, and 147,316,232 shares at August 27, 2011, and outstanding 115,362,048 shares at August 25, 2012, and 117,353,341 shares at August 27, 2011
|
11,913
|
|
|
14,732
|
|
||
Capital in excess of par
|
259,189
|
|
|
274,445
|
|
||
Retained earnings
|
1,234,384
|
|
|
1,969,749
|
|
||
Accumulated other comprehensive loss
|
(1,841
|
)
|
|
(6,403
|
)
|
||
Common stock held in treasury, at cost (3,763,691 shares at August 25, 2012, and 29,962,891 shares at August 27, 2011)
|
(206,018
|
)
|
|
(1,165,449
|
)
|
||
Total shareholders’ equity
|
1,297,627
|
|
|
1,087,074
|
|
||
Total liabilities and shareholders’ equity
|
$
|
3,373,065
|
|
|
$
|
2,996,205
|
|
(in thousands, except per share
and share amounts)
|
Common
Stock
|
|
Capital in
excess of par
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Treasury
stock
|
|
Total
|
||||||||||||
Balance, August 29, 2009
(138,795,832 shares common stock;
6,689,902 shares treasury stock)
|
14,549
|
|
|
210,349
|
|
|
1,387,905
|
|
|
(8,960
|
)
|
|
(163,783
|
)
|
|
1,440,060
|
|
||||||
Net income for the year
|
|
|
|
|
358,135
|
|
|
|
|
|
|
358,135
|
|
||||||||||
Unrealized gains on investment securities (net of $1.2 million of taxes)
|
|
|
|
|
|
|
1,914
|
|
|
|
|
1,914
|
|
||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
360,049
|
|
|||||||||||
Issuance of 1,010,503 common shares under incentive plans, including tax benefits
|
101
|
|
|
21,045
|
|
|
|
|
|
|
|
|
21,146
|
|
|||||||||
Purchase of 9,370,908 common shares for treasury
|
|
|
|
|
|
|
|
|
(332,189
|
)
|
|
(332,189
|
)
|
||||||||||
Issuance of 17,532 shares of treasury stock under incentive plans (Director compensation)
|
|
|
95
|
|
|
|
|
|
|
445
|
|
|
540
|
|
|||||||||
Stock-based compensation
|
|
|
12,342
|
|
|
|
|
|
|
|
|
12,342
|
|
||||||||||
Dividends declared on common stock, $.60 per share
|
|
|
|
|
(80,394
|
)
|
|
|
|
|
|
(80,394
|
)
|
||||||||||
Balance, August 28, 2010
(130,452,959 shares common stock;
16,043,278 shares treasury stock)
|
14,650
|
|
|
243,831
|
|
|
1,665,646
|
|
|
(7,046
|
)
|
|
(495,527
|
)
|
|
1,421,554
|
|
||||||
Net income for the year
|
|
|
|
|
388,445
|
|
|
|
|
|
|
388,445
|
|
||||||||||
Unrealized gains on investment securities (net of $0.6 million of taxes)
|
|
|
|
|
|
|
904
|
|
|
|
|
904
|
|
||||||||||
Other
|
|
|
|
|
|
|
(261
|
)
|
|
|
|
(261
|
)
|
||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
389,088
|
|
|||||||||||
Issuance of 819,995 common shares under incentive plans, including tax benefits
|
82
|
|
|
16,430
|
|
|
|
|
|
|
|
|
16,512
|
|
|||||||||
Purchase of 13,934,868 common shares for treasury
|
|
|
|
|
|
|
|
|
(670,466
|
)
|
|
(670,466
|
)
|
||||||||||
Issuance of 15,255 shares of treasury stock under incentive plans (Director compensation)
|
|
|
131
|
|
|
|
|
|
|
544
|
|
|
675
|
|
|||||||||
Stock-based compensation
|
|
|
14,053
|
|
|
|
|
|
|
|
|
14,053
|
|
||||||||||
Dividends declared on common stock, $.695 per share
|
|
|
|
|
(84,342
|
)
|
|
|
|
|
|
(84,342
|
)
|
||||||||||
Balance, August 27, 2011
(117,353,341 shares common stock;
29,962,891 shares treasury stock)
|
$
|
14,732
|
|
|
$
|
274,445
|
|
|
$
|
1,969,749
|
|
|
$
|
(6,403
|
)
|
|
$
|
(1,165,449
|
)
|
|
$
|
1,087,074
|
|
Net income for the year
|
|
|
|
|
422,240
|
|
|
|
|
|
|
422,240
|
|
||||||||||
Unrealized gains on investment securities (net of $2.7 million of taxes)
|
|
|
|
|
|
|
4,527
|
|
|
|
|
4,527
|
|
||||||||||
Other
|
|
|
|
|
|
|
35
|
|
|
|
|
35
|
|
||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
426,802
|
|
|||||||||||
Issuance of 1,209,507 common shares under incentive plans, including tax benefits
|
121
|
|
|
29,602
|
|
|
|
|
|
|
|
|
29,723
|
|
|||||||||
Purchase of 3,214,866 common shares for treasury
|
|
|
|
|
|
|
|
|
(191,573
|
)
|
|
(191,573
|
)
|
||||||||||
Retirement of 29,400,000 shares of treasury stock
|
(2,940
|
)
|
|
(60,139
|
)
|
|
(1,087,303
|
)
|
|
|
|
1,150,382
|
|
|
—
|
|
|||||||
Issuance of 14,066 shares of treasury stock under incentive plans (Director compensation)
|
|
|
152
|
|
|
|
|
|
|
622
|
|
|
774
|
|
|||||||||
Stock-based compensation
|
|
|
15,129
|
|
|
|
|
|
|
|
|
15,129
|
|
||||||||||
Dividends declared on common stock, $.60 per share
|
|
|
|
|
(70,302
|
)
|
|
|
|
|
|
(70,302
|
)
|
||||||||||
Balance, August 25, 2012
(115,362,048 shares common stock;
3,763,691 shares treasury stock)
|
$
|
11,913
|
|
|
$
|
259,189
|
|
|
$
|
1,234,384
|
|
|
$
|
(1,841
|
)
|
|
$
|
(206,018
|
)
|
|
$
|
1,297,627
|
|
|
Years Ended
|
||||||||||
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
|
August 28, 2010
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
422,240
|
|
|
$
|
388,445
|
|
|
$
|
358,135
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
210,748
|
|
|
182,455
|
|
|
172,037
|
|
|||
Deferred income taxes
|
(24,321
|
)
|
|
46,805
|
|
|
8,123
|
|
|||
Excess tax benefits from stock-based compensation
|
(12,345
|
)
|
|
(4,745
|
)
|
|
(1,676
|
)
|
|||
Stock-based compensation
|
15,902
|
|
|
14,728
|
|
|
13,163
|
|
|||
Loss on disposition of property and equipment, including impairment
|
11,429
|
|
|
9,461
|
|
|
7,244
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Merchandise inventories
|
(271,503
|
)
|
|
(126,638
|
)
|
|
(34,225
|
)
|
|||
Prepayments and other current assets
|
23,838
|
|
|
(8,409
|
)
|
|
200
|
|
|||
Other assets
|
(2,506
|
)
|
|
(4,888
|
)
|
|
2,666
|
|
|||
Accounts payable and accrued liabilities
|
(36,497
|
)
|
|
37,057
|
|
|
61,646
|
|
|||
Income taxes
|
37,209
|
|
|
(23,799
|
)
|
|
25,389
|
|
|||
Other liabilities
|
(4,823
|
)
|
|
17,592
|
|
|
(21,163
|
)
|
|||
|
369,371
|
|
|
528,064
|
|
|
591,539
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of restricted and unrestricted investment securities
|
(211,142
|
)
|
|
(352,082
|
)
|
|
(142,730
|
)
|
|||
Sales of restricted and unrestricted investment securities
|
334,915
|
|
|
415,877
|
|
|
46,888
|
|
|||
Net change in restricted cash
|
(80,389
|
)
|
|
—
|
|
|
—
|
|
|||
Net proceeds from sale-leaseback
|
359,663
|
|
|
—
|
|
|
—
|
|
|||
Capital expenditures
|
(603,313
|
)
|
|
(345,268
|
)
|
|
(212,435
|
)
|
|||
Proceeds from dispositions of property and equipment
|
1,955
|
|
|
1,055
|
|
|
1,329
|
|
|||
|
(198,311
|
)
|
|
(280,418
|
)
|
|
(306,948
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Revolving credit facility borrowings
|
362,300
|
|
|
46,000
|
|
|
—
|
|
|||
Repayment of revolving credit facility borrowings
|
(347,300
|
)
|
|
(46,000
|
)
|
|
—
|
|
|||
Issuance of long-term debt
|
—
|
|
|
298,482
|
|
|
—
|
|
|||
Payment of debt issuance costs
|
—
|
|
|
(7,811
|
)
|
|
(651
|
)
|
|||
Repayments of long-term debt
|
(16,200
|
)
|
|
—
|
|
|
—
|
|
|||
Repurchases of common stock
|
(191,573
|
)
|
|
(670,466
|
)
|
|
(332,189
|
)
|
|||
Change in cash overdrafts
|
26,786
|
|
|
(47,722
|
)
|
|
49,687
|
|
|||
Proceeds from exercise of employee stock options
|
24,900
|
|
|
17,216
|
|
|
19,663
|
|
|||
Excess tax benefits from stock-based compensation
|
12,345
|
|
|
4,745
|
|
|
1,676
|
|
|||
Payment of dividends
|
(91,390
|
)
|
|
(83,439
|
)
|
|
(78,913
|
)
|
|||
|
(220,132
|
)
|
|
(488,995
|
)
|
|
(340,727
|
)
|
|||
Net change in cash and cash equivalents
|
(49,072
|
)
|
|
(241,349
|
)
|
|
(56,136
|
)
|
|||
Cash and cash equivalents at beginning of year
|
141,405
|
|
|
382,754
|
|
|
438,890
|
|
|||
Cash and cash equivalents at end of year
|
$
|
92,333
|
|
|
$
|
141,405
|
|
|
$
|
382,754
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Purchases of property and equipment awaiting processing for payment, included in accounts payable
|
$
|
54,609
|
|
|
$
|
36,220
|
|
|
$
|
22,848
|
|
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest, net of amounts capitalized
|
24,001
|
|
|
20,395
|
|
|
12,568
|
|
|||
Income taxes, net of refunds
|
234,740
|
|
|
201,843
|
|
|
175,915
|
|
•
|
Level 1—Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation
|
•
|
Level 3—Inputs that are unobservable for the asset or liability.
|
|
August 25, 2012
|
||||||||||||||
(in thousands)
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
18,902
|
|
|
$
|
18,902
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
23,720
|
|
|
—
|
|
|
—
|
|
|
23,720
|
|
||||
Short-term bond mutual fund
|
5,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
1,271
|
|
|
1,271
|
|
|
—
|
|
|
—
|
|
||||
Restricted cash and investments:
(2)
|
|
|
|
|
|
|
|
||||||||
Municipal debt securities
|
55,303
|
|
|
—
|
|
|
55,303
|
|
|
—
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
(1)
|
17,903
|
|
|
17,903
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
August 27, 2011
|
||||||||||||||
(in thousands)
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
77,842
|
|
|
$
|
77,842
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
107,608
|
|
|
—
|
|
|
150
|
|
|
107,458
|
|
||||
Variable rate demand notes
|
42,299
|
|
|
42,299
|
|
|
—
|
|
|
—
|
|
||||
Municipal debt securities
|
51,398
|
|
|
—
|
|
|
51,398
|
|
|
—
|
|
||||
Corporate debt securities
|
950
|
|
|
—
|
|
|
950
|
|
|
—
|
|
||||
Equity securities
|
1,209
|
|
|
1,209
|
|
|
—
|
|
|
—
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
(1)
|
15,580
|
|
|
15,580
|
|
|
—
|
|
|
—
|
|
(1)
|
Represents assets held pursuant to a deferred compensation plan for certain key management employees.
|
(2)
|
As of
August 25, 2012
, restricted cash and investments of
$45.9 million
and
$9.4 million
were included in Restricted Cash and Investments and Other Assets, respectively, in the Consolidated Balance Sheets. See Note 1 for more information.
|
(in thousands)
|
Fiscal 2012
|
|
Fiscal 2011
|
||||
Beginning Balance
|
$
|
107,458
|
|
|
$
|
147,108
|
|
Net unrealized gains included in other comprehensive income
|
7,187
|
|
|
2,125
|
|
||
Sales
|
(90,925
|
)
|
|
(41,625
|
)
|
||
Transfers out of Level 3
|
—
|
|
|
(150
|
)
|
||
Ending Balance
|
$
|
23,720
|
|
|
$
|
107,458
|
|
August 25, 2012
|
Amortized Cost
|
|
Gross
Unrealized Holding Gains |
|
Gross
Unrealized Holding Losses |
|
|
|
Fair Value
|
||||||
Auction rate securities
|
$
|
25,850
|
|
|
—
|
|
|
2,130
|
|
|
(1)
|
|
$
|
23,720
|
|
Short-term bond mutual fund
|
5,000
|
|
|
—
|
|
|
—
|
|
|
|
|
5,000
|
|
||
Municipal debt securities
|
55,036
|
|
|
267
|
|
|
—
|
|
|
|
|
55,303
|
|
||
Equity securities
|
1,979
|
|
|
—
|
|
|
708
|
|
|
|
|
1,271
|
|
August 27, 2011
|
Amortized Cost
|
|
Gross
Unrealized Holding Gains |
|
Gross
Unrealized Holding Losses |
|
|
|
Fair Value
|
||||||
Auction rate securities
|
$
|
116,925
|
|
|
—
|
|
|
9,317
|
|
|
(1)
|
|
$
|
107,608
|
|
Variable rate demand notes
|
42,299
|
|
|
—
|
|
|
—
|
|
|
|
|
42,299
|
|
||
Municipal debt securities
|
51,125
|
|
|
273
|
|
|
—
|
|
|
|
|
51,398
|
|
||
Corporate debt securities
|
941
|
|
|
9
|
|
|
—
|
|
|
|
|
950
|
|
||
Equity securities
|
1,979
|
|
|
—
|
|
|
770
|
|
|
|
|
1,209
|
|
(1)
|
The gross unrealized holding losses for fiscal
2012
and fiscal
2011
were in a continuous unrealized loss position for 12 months or longer.
|
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
||||
Buildings and building improvements
|
$
|
543,392
|
|
|
$
|
572,039
|
|
Furniture, fixtures and equipment
|
1,755,154
|
|
|
1,460,116
|
|
||
Transportation equipment
|
89,520
|
|
|
87,274
|
|
||
Leasehold improvements
|
484,383
|
|
|
398,803
|
|
||
Construction in progress
|
46,032
|
|
|
61,152
|
|
||
|
2,918,481
|
|
|
2,579,384
|
|
||
Less: accumulated depreciation and amortization
|
1,515,265
|
|
|
1,391,806
|
|
||
|
1,403,216
|
|
|
1,187,578
|
|
||
Land
|
93,144
|
|
|
93,011
|
|
||
|
$
|
1,496,360
|
|
|
$
|
1,280,589
|
|
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
||||
5.24% Notes due September 27, 2015
|
$
|
64,800
|
|
|
$
|
81,000
|
|
5.41% Notes due September 27, 2015
|
169,000
|
|
|
169,000
|
|
||
5.00% Notes due February 1, 2021
|
298,720
|
|
|
298,570
|
|
||
|
532,520
|
|
|
548,570
|
|
||
Less: current portion
|
16,200
|
|
|
16,200
|
|
||
Long-term portion
|
$
|
516,320
|
|
|
$
|
532,370
|
|
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
||||
Compensation
|
$
|
99,673
|
|
|
$
|
106,047
|
|
Taxes other than income taxes
|
91,207
|
|
|
95,973
|
|
||
Self-insurance liabilities
|
52,224
|
|
|
56,964
|
|
||
Other(1)
|
85,294
|
|
|
51,834
|
|
||
|
$
|
328,398
|
|
|
$
|
310,818
|
|
(1)
|
Other accrued liabilities consist primarily of certain store rental accruals, litigation accruals, medical insurance accruals, store utility accruals, current portion of deferred gain on sale-leaseback transactions and accrued interest.
|
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
||||
Self-insurance liabilities
|
$
|
184,638
|
|
|
$
|
193,169
|
|
Other(1)
|
83,703
|
|
|
77,297
|
|
||
|
$
|
268,341
|
|
|
$
|
270,466
|
|
(1)
|
Other liabilities consist primarily of deferred rent, income taxes and deferred compensation.
|
(in thousands)
|
Fiscal 2012
|
|
Fiscal 2011
|
|
Fiscal 2010
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
228,245
|
|
|
$
|
155,893
|
|
|
$
|
174,328
|
|
State
|
36,709
|
|
|
25,974
|
|
|
23,272
|
|
|||
Foreign
|
1,065
|
|
|
41
|
|
|
—
|
|
|||
|
266,019
|
|
|
181,908
|
|
|
197,600
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(19,648
|
)
|
|
44,964
|
|
|
8,621
|
|
|||
State
|
(4,673
|
)
|
|
1,832
|
|
|
(498
|
)
|
|||
Foreign
|
—
|
|
|
9
|
|
|
—
|
|
|||
|
(24,321
|
)
|
|
46,805
|
|
|
8,123
|
|
|||
Total
|
$
|
241,698
|
|
|
$
|
228,713
|
|
|
$
|
205,723
|
|
|
Fiscal 2012
|
|
Fiscal 2011
|
|
Fiscal 2010
|
|||||||||||||||
(in thousands)
|
Income tax
expense |
|
% of pre-tax
income |
|
Income tax
expense |
|
% of pre-tax
income |
|
Income tax
expense |
|
% of pre-tax
income |
|||||||||
Computed federal income tax
|
$
|
232,378
|
|
|
35.0
|
%
|
|
$
|
216,005
|
|
|
35.0
|
%
|
|
$
|
197,351
|
|
|
35.0
|
%
|
State income taxes, net of federal income tax benefit
|
17,893
|
|
|
2.7
|
|
|
17,149
|
|
|
2.8
|
|
|
15,885
|
|
|
2.8
|
|
|||
Valuation allowance
|
1,732
|
|
|
0.3
|
|
|
1,566
|
|
|
0.3
|
|
|
(1,286
|
)
|
|
(0.2
|
)
|
|||
Other
|
(10,305
|
)
|
|
(1.6
|
)
|
|
(6,007
|
)
|
|
(1.0
|
)
|
|
(6,227
|
)
|
|
(1.1
|
)
|
|||
Actual income tax expense
|
$
|
241,698
|
|
|
36.4
|
%
|
|
$
|
228,713
|
|
|
37.1
|
%
|
|
$
|
205,723
|
|
|
36.5
|
%
|
(in thousands)
|
August 25,
2012 |
|
August 27,
2011 |
||||
Deferred income tax liabilities:
|
|
|
|
||||
Excess of book over tax basis of property and equipment
|
$
|
109,397
|
|
|
$
|
124,243
|
|
Deferred income tax assets:
|
|
|
|
||||
Excess of tax over book basis of inventories
|
$
|
26,359
|
|
|
$
|
17,372
|
|
Nondeductible accruals for:
|
|
|
|
||||
Insurance
|
12,395
|
|
|
13,930
|
|
||
Compensation
|
34,717
|
|
|
34,739
|
|
||
Net Operating Losses
|
7,123
|
|
|
5,148
|
|
||
Deferred rent
|
19,063
|
|
|
14,708
|
|
||
Litigation charge
|
4,149
|
|
|
151
|
|
||
Other
|
12,594
|
|
|
12,965
|
|
||
Gross deferred income tax assets
|
116,400
|
|
|
99,013
|
|
||
Less: valuation allowance
|
(5,730
|
)
|
|
(3,999
|
)
|
||
Net deferred tax assets
|
$
|
110,670
|
|
|
$
|
95,014
|
|
(in thousands)
|
Unrecognized Tax
Benefit |
|
Interest and
Penalties |
|
Total
|
||||||
Balance at August 29, 2009
|
$
|
33,245
|
|
|
$
|
6,122
|
|
|
$
|
39,367
|
|
Increases related to prior year tax positions
|
849
|
|
|
2,004
|
|
|
2,853
|
|
|||
Decreases related to prior year tax positions
|
(327
|
)
|
|
(21
|
)
|
|
(348
|
)
|
|||
Increases related to current year tax positions
|
2,260
|
|
|
411
|
|
|
2,671
|
|
|||
Settlements during the period
|
(16,907
|
)
|
|
(3,066
|
)
|
|
(19,973
|
)
|
|||
Lapse of statute of limitations
|
(785
|
)
|
|
(354
|
)
|
|
(1,139
|
)
|
|||
Balance at August 28, 2010
|
$
|
18,335
|
|
|
$
|
5,096
|
|
|
$
|
23,431
|
|
Increases related to prior year tax positions
|
6,305
|
|
|
1,799
|
|
|
8,104
|
|
|||
Decreases related to prior year tax positions
|
(4,472
|
)
|
|
—
|
|
|
(4,472
|
)
|
|||
Increases related to current year tax positions
|
3,190
|
|
|
530
|
|
|
3,720
|
|
|||
Settlements during the period
|
(1,542
|
)
|
|
(553
|
)
|
|
(2,095
|
)
|
|||
Lapse of statute of limitations
|
(1,622
|
)
|
|
(795
|
)
|
|
(2,417
|
)
|
|||
Balance at August 27, 2011
|
$
|
20,194
|
|
|
$
|
6,077
|
|
|
$
|
26,271
|
|
Increases related to prior year tax positions
|
1,147
|
|
|
1,668
|
|
|
2,815
|
|
|||
Decreases related to prior year tax positions
|
(3,892
|
)
|
|
(1,427
|
)
|
|
(5,319
|
)
|
|||
Increases related to current year tax positions
|
4,879
|
|
|
442
|
|
|
5,321
|
|
|||
Settlements during the period
|
(3,586
|
)
|
|
(1,350
|
)
|
|
(4,936
|
)
|
|||
Lapse of statute of limitations
|
(1,229
|
)
|
|
(549
|
)
|
|
(1,778
|
)
|
|||
Balance at August 25, 2012
|
$
|
17,513
|
|
|
$
|
4,861
|
|
|
$
|
22,374
|
|
(in thousands)
|
Fiscal 2012
|
|
Fiscal 2011
|
|
Fiscal 2010
|
||||||
Minimum rentals, net of minor sublease rentals
|
$
|
481,871
|
|
|
$
|
429,942
|
|
|
$
|
399,319
|
|
Contingent rentals
|
8,468
|
|
|
7,862
|
|
|
7,590
|
|
|||
|
$
|
490,339
|
|
|
$
|
437,804
|
|
|
$
|
406,909
|
|
(in thousands)
|
Minimum
Rentals
|
||
Fiscal 2013
|
$
|
431,076
|
|
Fiscal 2014
|
389,754
|
|
|
Fiscal 2015
|
341,291
|
|
|
Fiscal 2016
|
291,793
|
|
|
Fiscal 2017
|
244,843
|
|
|
Thereafter
|
1,046,516
|
|
|
Total minimum rentals
|
$
|
2,745,273
|
|
(in thousands)
|
Total Amounts
Committed
|
||
Standby letters of credit
|
$
|
26,054
|
|
Surety bonds
|
46,529
|
|
|
Total
|
$
|
72,583
|
|
•
|
Colorado -
Julie Farley v. Family Dollar Stores of Colorado, Inc.,
was filed on February 7, 2012, in the United States District Court for the District of Colorado seeking unpaid overtime for a class of current and former Colorado store managers whom plaintiffs claim are not properly classified as exempt from overtime pay under Colorado law. On June 4, 2012, the Company filed a motion to dismiss certain of plaintiff's state law claims. That motion is currently pending before the court. Class discovery has begun.
|
•
|
Connecticut -
Cook, et al. v. Family Dollar Stores of Connecticut, Inc.
, was filed on October 5, 2011, in the Superior Court of the State of Connecticut seeking unpaid overtime pay for a class of current and former Connecticut store managers whom plaintiffs claim are not properly classified as exempt from overtime under Connecticut law. The parties have concluded class discovery. The Company has filed summary judgment seeking dismissal of one of the named plaintiffs' claims, Cook. The Court will determine shortly whether it will consider the summary judgment motion prior to any briefing on class issues.
|
•
|
Kentucky -
Barker v. Family Dollar, Inc.
, was filed on February 17, 2010, in Circuit Court in Jefferson County, Kentucky seeking unpaid overtime, compensation for unpaid breaks and for seventh day work under Kentucky law for a class of current and former Kentucky store managers. The Company removed this matter to the United States
|
•
|
Missouri -
Twila Walters et. al. v. Family Dollar Stores of Missouri, Inc.
, was originally filed on January 26, 2010, seeking unpaid overtime for a class of current and former Missouri store managers who presently reside in Missouri and whom plaintiffs claim are not properly classified as exempt from overtime under Missouri law. This matter is pending in the Circuit Court of Jackson County, Missouri (the “Circuit Court”). On May 10, 2011, the Circuit Court certified the class under the Missouri Minimum Wage Law and common law. The Company sought appeal of the class certification decision with the Missouri Court of Appeals and the Missouri Supreme Court, but both courts declined to hear the appeal. The parties are engaged in merits discovery and the trial is scheduled for February 25, 2013.
|
•
|
New Jersey -
Hegab v. Family Dollar Stores, Inc.,
was filed in the United States District Court for the District of New Jersey on March 3, 2011, seeking unpaid overtime pay for a class of current and former New Jersey store managers whom plaintiffs claim are not properly classified as exempt from overtime pay under New Jersey law. The parties are now engaged in class discovery.
|
•
|
New York -
Youngblood, et al. v.
Family Dollar Stores of New York, Inc. et al.,
was filed in the United States District Court for the Southern District of New York on April 2, 2009.
Rancharan v. Family Dollar Stores, Inc.,
was filed in the Supreme Court of the State of New York, Queens County on March 4, 2009, was removed to the United States District Court for the Eastern District of New York on May 6, 2009, and was transferred to the Southern District of New York where the case has been consolidated with
Youngblood
. The parties have a preliminary agreement to resolve this matter for a maximum payment of
$14 million
. As of August 25, 2012, the Company recorded an
$11.5 million
litigation charge based on its estimate of the most likely payout under the preliminary settlement agreement. The motion for preliminary approval of the settlement is currently scheduled to be filed with the Court on or before October 19, 2012.
|
•
|
Pennsylvania -
Itterly v. Family Dollar Stores, Inc.,
which was formerly pending in the N.C. Federal Court, was remanded back to the United States District Court for the Eastern District of Pennsylvania on February 8, 2012. In
Itterly
, plaintiffs are seeking unpaid overtime for a class of current and former Pennsylvania store managers whom plaintiffs claim are not properly classified as exempt from overtime pay under Pennsylvania law. Discovery closed in June 2012. The Company has filed summary judgment seeking dismissal of Itterly's claims in their entirety.
|
|
Years Ended
|
|||||||
|
August 25, 2012
|
|
August 27, 2011
|
|
August 28, 2010
|
|||
Expected dividend yield
|
1.56
|
%
|
|
1.56
|
%
|
|
2.27
|
%
|
Expected stock price volatility
|
34.5
|
%
|
|
33.8
|
%
|
|
35.20
|
%
|
Weighted average risk-free interest rate
|
0.74
|
%
|
|
1.01
|
%
|
|
2.07
|
%
|
Expected life of options (years)
|
4.39
|
|
|
4.42
|
|
|
4.50
|
|
(in thousands, except per share amounts)
|
Options
Outstanding
|
|
Weighted-
Average Exercise
Price
|
|
Weighted-Average
Remaining
Contractual Life in
Years
|
|
Aggregate Intrinsic
Value
|
|||||
Balance at August 27, 2011
|
2,506
|
|
|
$
|
29.90
|
|
|
|
|
|
||
Granted
|
618
|
|
|
51.99
|
|
|
|
|
|
|||
Exercised
|
(952
|
)
|
|
26.14
|
|
|
|
|
|
|||
Forfeited
|
(154
|
)
|
|
40.91
|
|
|
|
|
|
|||
Expired
|
(1
|
)
|
|
31.22
|
|
|
|
|
|
|||
Balance at August 25, 2012
|
2,017
|
|
|
$
|
37.60
|
|
|
2.67
|
|
$
|
50,000
|
|
Exercisable at August 25, 2012
|
377
|
|
|
$
|
25.50
|
|
|
1.53
|
|
$
|
13,891
|
|
(in thousands, except per share amounts)
|
Performance
Share Rights
Outstanding
|
|
Weighted
Average
Grant-Date
Fair Value
|
|||
Nonvested—August 27, 2011
|
582
|
|
|
$
|
31.13
|
|
Granted
|
225
|
|
|
52.42
|
|
|
Vested
|
(436
|
)
|
|
25.77
|
|
|
Cancellations
|
(62
|
)
|
|
45.34
|
|
|
Adjustments
|
138
|
|
|
N/A
|
|
|
Nonvested—August 25, 2012
|
447
|
|
|
$
|
42.85
|
|
(in thousands, except per share amounts)
|
Fiscal 2012
|
|
Fiscal 2011
|
|
Fiscal 2010
|
||||||
Basic Net Income Per Share:
|
|
|
|
|
|
||||||
Net income
|
$
|
422,240
|
|
|
$
|
388,445
|
|
|
$
|
358,135
|
|
Weighted average number of shares outstanding
|
117,097
|
|
|
123,360
|
|
|
135,745
|
|
|||
Net income per common share—basic
|
$
|
3.61
|
|
|
$
|
3.15
|
|
|
$
|
2.64
|
|
Diluted Net Income Per Share:
|
|
|
|
|
|
||||||
Net income
|
$
|
422,240
|
|
|
$
|
388,445
|
|
|
$
|
358,135
|
|
Weighted average number of shares outstanding
|
117,097
|
|
|
123,360
|
|
|
135,745
|
|
|||
Effect of dilutive securities—stock options
|
525
|
|
|
677
|
|
|
406
|
|
|||
Effect of dilutive securities—performance share rights
|
436
|
|
|
449
|
|
|
445
|
|
|||
Weighted average shares—diluted
|
118,058
|
|
|
124,486
|
|
|
136,596
|
|
|||
Net income per common share—diluted
|
$
|
3.58
|
|
|
$
|
3.12
|
|
|
$
|
2.62
|
|
|
Years Ended
|
||||||||||
(in thousands)
|
August 25, 2012
|
|
August 27, 2011
|
|
August 28, 2010
|
||||||
Classes of similar products:
|
|
|
|
|
|
||||||
Consumables
|
$
|
6,436,719
|
|
|
$
|
5,686,576
|
|
|
$
|
5,119,911
|
|
Home Products
|
1,067,541
|
|
|
1,084,480
|
|
|
1,035,944
|
|
|||
Apparel and Accessories
|
822,839
|
|
|
854,602
|
|
|
840,929
|
|
|||
Seasonal and Electronics
|
1,003,906
|
|
|
922,177
|
|
|
870,187
|
|
|||
Net Sales
|
$
|
9,331,005
|
|
|
$
|
8,547,835
|
|
|
$
|
7,866,971
|
|
(in thousands, except per share amounts)
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
||||||||
2012
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
2,148,287
|
|
|
$
|
2,458,636
|
|
|
$
|
2,359,957
|
|
|
$
|
2,364,125
|
|
Gross profit
|
757,572
|
|
|
857,399
|
|
|
845,273
|
|
|
799,703
|
|
||||
Net income
|
80,350
|
|
|
136,419
|
|
|
124,540
|
|
|
80,931
|
|
||||
Net income per common share(1)
|
0.68
|
|
|
1.15
|
|
|
1.06
|
|
|
0.69
|
|
||||
2011
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,996,941
|
|
|
$
|
2,263,169
|
|
|
$
|
2,153,395
|
|
|
$
|
2,134,330
|
|
Gross profit
|
719,565
|
|
|
807,367
|
|
|
779,756
|
|
|
725,607
|
|
||||
Net income
|
74,315
|
|
|
123,180
|
|
|
111,101
|
|
|
79,849
|
|
||||
Net income per common share(1)
|
0.58
|
|
|
0.98
|
|
|
0.91
|
|
|
0.66
|
|
(1)
|
Figures represent diluted earnings per share. The sum of the quarterly net income per common share may not equal the annual net income per common share due to rounding.
|
(a)
|
Documents filed as part of this report:
|
1.
|
See Part II—Item 8—“Financial Statements and Supplementary Data—Index to Consolidated Financial Statements”, of this Report.
|
2.
|
All schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions, are inapplicable or the information is included in the Consolidated Financial Statements, and therefore, have been omitted.
|
3.
|
The Exhibits listed below in item (b).
|
(b)
|
The accompanying Index to Exhibits is incorporated herein by reference.
|
|
|
|
FAMILY DOLLAR STORES, INC.
|
|
|
|
(Registrant)
|
Date:
|
October 19, 2012
|
By
|
/s/ H
OWARD
R. L
EVINE
|
|
|
|
Howard R. Levine
|
|
|
|
Chairman of the Board
(Chief Executive Officer)
|
Signature
|
|
Title
|
|
Date
|
/s/ H
OWARD
R. L
EVINE
|
|
Chairman of the Board, Chief
Executive Officer and Director
(Principal Executive Officer)
|
|
October 19, 2012
|
Howard R. Levine
|
||||
/s/ M
ARY
A. W
INSTON
|
|
Executive Vice President—
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
|
|
October 19, 2012
|
Mary A. Winston
|
||||
/s/ M
ARK
R. B
ERNSTEIN
|
|
Director
|
|
October 19, 2012
|
Mark R. Bernstein
|
||||
/s/ P
AMELA
L. D
AVIES
|
|
Director
|
|
October 19, 2012
|
Pamela L. Davies
|
||||
/s/ S
HARON
A
LLRED
D
ECKER
|
|
Director
|
|
October 19, 2012
|
Sharon Allred Decker
|
||||
/s/ E
DWARD
C. D
OLBY
|
|
Director
|
|
October 19, 2012
|
Edward C. Dolby
|
||||
/s/ G
LENN
A. E
ISENBERG
|
|
Director
|
|
October 19, 2012
|
Glenn A. Eisenberg
|
||||
/s/ E
DWARD
P. G
ARDEN
|
|
Director
|
|
October 19, 2012
|
Edward P. Garden
|
||||
/s/ G
EORGE
R. M
AHONEY
, J
R
.
|
|
Director
|
|
October 19, 2012
|
George R. Mahoney, Jr.
|
||||
/s/ J
AMES
G. M
ARTIN
|
|
Director
|
|
October 19, 2012
|
James G. Martin
|
||||
/s/ H
ARVEY
M
ORGAN
|
|
Director
|
|
October 19, 2012
|
Harvey Morgan
|
||||
/s/ D
ALE
C. P
OND
|
|
Director
|
|
October 19, 2012
|
Dale C. Pond
|
3.1
|
|
Restated Certificate of Incorporation, dated November 8, 2006 (filed as Exhibit 3.1 to the Company’s Report on Form 10-K for the fiscal year ended August 26, 2006)
|
3.2
|
|
Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Company’s Form 10-Q for the quarter ended February 26, 2011)
|
3.3
|
|
Bylaws of Family Dollar Stores, Inc., as amended through March 2, 2011 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 3, 2011)
|
4.1
|
|
Sections FOURTH, SIXTH and SEVENTH of the Company’s Restated Certificate of Incorporation (included as Exhibit 3.1) and Articles II, VII, VIII, XII and XIV of the Company’s Bylaws (included as Exhibit 3.3)
|
4.2
|
|
Form of certificate representing shares of the Company’s Common Stock (filed as Exhibit 4.2 to the Company’s Form 10-K filing for the fiscal year ended August 27, 2005)
|
4.3
|
|
Rights Agreement, dated as of March 2, 2011, between Family Dollar Stores, Inc. and American Stock Transfer & Trust Company, LLC, which includes the Form of Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock as Exhibit A and the Form of Right Certificate as Exhibit B (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 3, 2011)
|
4.4
|
|
Amendment No. 1 dated as of February 24, 2012, to the Rights Agreement, dated as of March 2, 2011, between Family Dollar Stores, Inc. and American Stock Transfer & Trust Company, LLC (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K on February 24, 2012)
|
4.5
|
|
Indenture between Family Dollar Stores, Inc. and U.S. Bank National Association, as trustee, dated as of January 28, 2011 (filed as Exhibit 4.4 to the Company’s Form 10-Q for the quarter ended February 26, 2011)
|
4.6
|
|
First Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee, dated as of January 28, 2011 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 28, 2011)
|
4.7
|
|
Form of Global Note 5.00% Senior Note due 2021 (included as part of Exhibit 4.5 above)(filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 28, 2011)
|
10.1
|
|
Note Purchase Agreement dated as of September 27, 2005, between Family Dollar Stores, Inc., Family Dollar, Inc., and the various purchasers named therein, relating to $169,000,000 5.41% Series 2005-A Senior Notes, Tranche A, due September 27, 2015; and, $81,000,000 5.24% Series 2005-A Senior Notes, Tranche B, due September 27, 2015 (filed as Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended February 27, 2010)
|
10.2
|
|
First Amendment dated as of November 17, 2010, to the Note Purchase Agreement dated as of September 27, 2005, between Family Dollar Stores, Inc. and the various purchasers named therein, relating to $169,000,000 5.41% Series 2005-A Senior Notes, Tranche A, due September 27, 2015 and $81,000,000 5.24% Series 2005-A Senior Notes, Tranche B, due September 27, 2015 (filed as Exhibit 10.4 to the Company’s Form 10-Q for the quarter ended November 27, 2010)
|
10.3
|
|
$400 Million Credit Agreement dated as of November 17, 2010, by and among Family Dollar Stores, Inc. as Borrower, Wells Fargo Bank, National Association, as Administrative Agent, and the lenders party thereto (filed as Exhibit 10.5 to the Company’s Form 10-Q for the quarter ended November 27, 2010)
|
10.4
|
|
$350,000,000 Credit Agreement dated August 24, 2006, between the Company and Family Dollar, Inc., as Borrowers, and Wachovia Bank, National Association, as Administrative Agent, Swingline Lender and Fronting Bank, and various other Lenders named therein (filed as Exhibit 10 to the Company’s Report on Form 8-K filed with the SEC on August 28, 2006)
|
10.5
|
|
Second Amendment dated as of November 17, 2010, to the Credit Agreement dated August 24, 2006, between the Family Dollar Stores, Inc., as Borrower, and Wells Fargo Bank, National Association (successor by merger to Wachovia Bank, National Association), as Administrative Agent, and various lenders named therein (filed as Exhibit 10.6 to the Company’s Form 10-Q for the quarter ended November 27, 2010)
|
10.6
|
|
$250 million 364-Day Credit Agreement between the Company and Family Dollar, Inc., as Borrowers, and Wachovia Bank, National Association, as Administrative Agent and Swingline Lender, and various other lenders named therein (filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended November 28, 2009)
|
*10.7
|
|
Summary of compensation arrangements of the Company’s named executive officers for fiscal 2011 (filed under Item 5.02 in the Company’s Current Report on Form 8-K filed with the SEC on
October 15, 2010)
|
*10.8
|
|
Summary of compensation arrangements of the Company’s named executive officers for fiscal 2012 (filed under Item 5.02 in the Company’s Current Reports on Form 8-K filed with the SEC on September 9, 2011 and September 28, 2011)
|
*10.9
|
|
Summary of compensation arrangements of the Company’s named executive officers for fiscal 2013 (filed under Item 5.02 in the Company’s Current Reports on Form 8-K filed with the SEC on October 15, 2012)
|
*10.10
|
|
Family Dollar Stores, Inc., 2006 Incentive Plan (filed as Appendix B to the Company’s Definitive Proxy Statement filed with the SEC on December 7, 2010)
|
*10.11
|
|
Family Dollar Stores, Inc. 2006 Incentive Plan Guidelines for Annual Cash Bonus Awards (filed as Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended May 26, 2012)
|
*10.12
|
|
Retirement Agreement dated September 30, 2002, between the Company and Leon Levine (filed as Exhibit 10 to the Company’s Report on Form 8-K filed with the SEC on October 2, 2002)
|
*10.13
|
|
Policy Regarding Tax Adjustments for Certain Severance Benefits (filed as Exhibit 10.2 to the Company’s Report on Form 8-K filed with the SEC on November 21, 2008)
|
*10.14
|
|
Form of Indemnification Agreement between the Company and its Directors (filed as Exhibit 10.1 to the Company’s Report on Form 8-K filed with the SEC on November 21, 2008)
|
*10.15
|
|
Employment Agreement effective October 7, 2008, between the Company and Howard R. Levine (filed as Exhibit 10.1 to the Company’s Report on Form 8-K filed with the SEC on October 14, 2008)
|
*10.16
|
|
Employment Agreement effective October 7, 2008, between the Company and R. James Kelly (filed as Exhibit 10.2 to the Company’s Report on Form 8-K filed with the SEC on October 14, 2008)
|
*10.17
|
|
Amendment dated September 26, 2011 to the Employment Agreement with R. James Kelly and Family Dollar Stores, Inc. dated October 7, 2008 (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on September 28, 2011)
|
*10.18
|
|
Employment Agreement between Michael K. Bloom and Family Dollar Stores, Inc. dated September 26, 2011 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 28, 2011)
|
*10.19
|
|
Form of Severance Agreement for Executive Vice Presidents (filed as Exhibit 10.3 to the Company’s Report on Form 8-K filed with the SEC on October 14, 2008)
|
*10.20
|
|
Form of Severance Agreement for Executive Vice Presidents (filed as Exhibit 10.1 to the Company’s Report on Form 8-K filed with the SEC on October 15, 2012)
|
*10.21
|
|
Form of Severance Agreement for Senior Vice Presidents (filed as Exhibit 10.4 to the Company’s Report on Form 8-K filed with the SEC on October 14, 2008)
|
*10.22
|
|
Medical Expense Reimbursement Plan, amended as of November 2, 2004 (filed as Exhibit 10(v) to the Company’s Form 10-K for the fiscal year ended August 28, 2004)
|
*10.23
|
|
Summary of Family Dollar Stores, Inc., Executive Supplemental Disability Income Plan (filed as Exhibit 10.25 to the Company’s Form 10-K for the fiscal year ended August 27, 2005)
|
*10.24
|
|
Family Dollar Stores, Inc., Executive Life Plan (filed as Exhibit 10.26 to the Company’s Form 10-K for the fiscal year ended August 27, 2005)
|
*10.25
|
|
Relocation Policy applicable to executive officers of the Company (filed as Exhibit 10.27 to the Company’s Form 10-K for the fiscal year ended August 27, 2005)
|
*10.26
|
|
Amended and Restated Family Dollar Compensation Deferral Plan (filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended March 1, 2008)
|
*10.27
|
|
Family Dollar Stores Inc., 2006 Incentive Plan Directors’ Share Awards Guidelines (filed as Exhibit 10.1 to the Company’s Report on Form 8-K filed with the SEC on August 21, 2006)
|
*10.28
|
|
Family Dollar Stores Inc., 2006 Incentive Plan 2006 Non-Qualified Stock Option Grant Program (filed as Exhibit 10.3 to the Company’s Report on Form 8-K filed with the SEC on January 25, 2006)
|
*10.29
|
|
Family Dollar Stores, Inc., 2006 Incentive Plan Guidelines for Long Term Incentive Performance Share Rights Awards (filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended May 26, 2012)
|
*10.30
|
|
Form of Performance Share Rights Award Certificate Awards (filed as Exhibit 10.2 to the Company’s Report on Form 8-K filed with the SEC on September 29, 2005)
|
*10.31
|
|
Stipulation and Agreement of Compromise, Settlement and Release (filed as Exhibit 10.1 to the Company’s Report on Form 8-K filed with the SEC on June 26, 2007)
|
*10.32
|
|
Agreement dated September 28, 2011 between Family Dollar Stores, Inc. and Trian Fund Management, L.P., Trian Management GP, LLC, certain funds managed by Trian Management L.P. and Nelson Peltz, Peter W. May and Edward P. Garden (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 29, 2011)
|
*10.33
|
|
Severance Agreement between Mary A. Winston and Family Dollar Stores, Inc. dated April 5, 2012 (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 10, 2012)
|
10.34
|
|
$300 million Credit Agreement dated as of August 17, 2011, by and among Family Dollar Stores, Inc., as Borrower, and Wells Fargo Bank, National Association as Administrative Agent and the lenders party thereto (filed as Exhibit 10.31 to the Company's Form 10-K for the fiscal year ended August 27, 2011)
|
10.35
|
|
First Amendment dated as of August 17, 2011, to the $400 Million Credit Agreement dated November 17, 2010, by and among Family Dollar Stores, Inc., as Borrower, and Wells Fargo Bank, National Association, as Administrative Agent, and the lenders party thereto (filed as Exhibit 10.31 to the Company's Form 10-K for the fiscal year ended August 27, 2011)
|
*10.36
|
|
Form of Severance Agreement for Senior Vice Presidents
|
21
|
|
Subsidiaries of the Company
|
23
|
|
Consent of Independent Registered Public Accounting Firm
|
31.1
|
|
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
|
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32
|
|
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
|
Financial statements from the annual report on Form 10-K of the Company for the year ended
August 25, 2012, filed on October 19, 2012, formatted in XBRL: (i) the Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements
|
*
|
Exhibit represents a management contract or compensatory plan
|
(i)
|
any of the following entities: Dollar General, Dollar Tree, Fred's, Big Lots, 99 Cent Stores, Walgreens, CVS, Rite Aid, Wal-Mart, Kmart, five Below, and Target;
|
(ii)
|
any person or entity who owns or operates multi merchandise retail stores that each have 25,000 square feet, or less, of total selling space, and that sell, or offer for sale, merchandise that is the same or substantially similar to merchandise sold or offered for sale by the Company;
|
(iii)
|
any person or entity who owns or operates or has developed plans to own or operate multi-merchandise retail stores that have 25,000 square feet, or less, of total selling space, and that will sell, or offer for sale merchandise that is the same as or substantially similar to merchandise offered for sale by the Company.
|
Entity
|
|
State of Incorporation/ Organization
|
Family Dollar Stores, Inc.
|
|
Delaware
|
Family Dollar, Inc.
|
|
North Carolina
|
Family Dollar Holdings, Inc.
|
|
North Carolina
|
Family Dollar Services, Inc.
|
|
North Carolina
|
Family Dollar Operations, Inc.
|
|
North Carolina
|
Family Dollar Trucking, Inc.
|
|
North Carolina
|
Family Dollar Merchandising, L.P.
|
|
Delaware
|
Family Dollar Distribution, LLC
|
|
Texas
|
Family Dollar Insurance, Inc.
|
|
South Carolina
|
Family Dollar GC, LLC
|
|
North Carolina
|
Family Dollar Stores of Alabama, Inc.
|
|
Alabama
|
Family Dollar Stores of Arkansas, Inc.
|
|
Arkansas
|
Family Dollar Stores of Colorado, Inc.
|
|
Colorado
|
Family Dollar Stores of Connecticut, Inc.
|
|
Connecticut
|
Family Dollar Stores of Delaware, Inc.
|
|
Delaware
|
Family Dollar Stores of D.C., Inc.
|
|
District of Columbia
|
Family Dollar Stores of Florida, Inc.
|
|
Florida
|
Family Dollar Stores of Georgia, Inc.
|
|
Georgia
|
Family Dollar Stores of Indiana, L.P.
|
|
Indiana
|
Family Dollar Stores of Iowa, Inc.
|
|
Iowa
|
Family Dollar Stores of Kentucky, Ltd.
|
|
Kentucky
|
Family Dollar Stores of Louisiana, Inc.
|
|
Louisiana
|
Family Dollar Stores of Maryland, Inc.
|
|
Maryland
|
Family Dollar Stores of Massachusetts, Inc.
|
|
Massachusetts
|
Family Dollar Stores of Michigan, Inc.
|
|
Michigan
|
Family Dollar Stores of Mississippi, Inc.
|
|
Mississippi
|
Family Dollar Stores of Missouri, Inc.
|
|
Missouri
|
Family Dollar Stores of New Jersey, Inc.
|
|
New Jersey
|
Family Dollar Stores of New Mexico, Inc.
|
|
New Mexico
|
Family Dollar Stores of New York, Inc.
|
|
New York
|
Family Dollar Stores of North Carolina, Inc.
|
|
North Carolina
|
Family Dollar Stores of Ohio, Inc.
|
|
Ohio
|
Family Dollar Stores of Oklahoma, Inc.
|
|
Oklahoma
|
Family Dollar Stores of Pennsylvania, Inc.
|
|
Pennsylvania
|
Family Dollar Stores of Rhode Island, Inc.
|
|
Rhode Island
|
Family Dollar Stores of South Carolina, Inc.
|
|
South Carolina
|
Family Dollar Stores of South Dakota, Inc.
|
|
South Dakota
|
Family Dollar Stores of Tennessee, Inc.
|
|
Tennessee
|
Family Dollar Stores of Texas, LLC
|
|
Texas
|
Family Dollar Stores of Vermont, Inc.
|
|
Vermont
|
Family Dollar Stores of Virginia, Inc.
|
|
Virginia
|
Family Dollar Stores of West Virginia, Inc.
|
|
West Virginia
|
Family Dollar Stores of Wisconsin, Inc.
|
|
Wisconsin
|
Tar Heel Trading International S.a.r.l.
|
|
Luxembourg
|
Tar Heel Trading International Holding Limited
|
|
Hong Kong
|
FDO Trading International Hong Kong Limited
|
|
Hong Kong
|
Tar Heel Trading International Hong Kong Limited
|
|
Hong Kong
|
FDO Trading International LLC
|
|
North Carolina
|
Shenzhen Tar Heel Information Consultancy Limited
|
|
People's Republic of China
|
1.
|
I have reviewed this Annual Report on Form 10-K of Family Dollar Stores, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Howard R. Levine
|
|
Howard R. Levine
|
|
Chairman of the Board and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this Annual Report on Form 10-K of Family Dollar Stores, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Mary A. Winston
|
|
Mary A. Winston
|
|
Executive Vice President – Chief Financial Officer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
•
|
the Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Howard R. Levine
|
|
Howard R. Levine
|
|
Chairman of the Board and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
/s/ Mary A. Winston
|
|
Mary A. Winston
|
|
Executive Vice President – Chief Financial Officer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|