Annual report pursuant to Section 13 and 15(d)

Segments and Disaggregated Revenue

v3.20.4
Segments and Disaggregated Revenue
 12 Months Ended
Jan. 30, 2021
Segment Reporting [Abstract]  
Segments and Disaggregated Revenue Segments and Disaggregated Revenue
We operate a chain of more than 15,600 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our CODM regularly reviews to analyze performance and allocate resources.
We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income. The CODM reviews these metrics for each of our reporting segments. We may revise the measurement of each segment’s operating income, as determined by the information regularly reviewed by the CODM. If the measurement of a segment changes, prior period amounts and balances are reclassified to be comparable to the current period’s presentation. Corporate, support and Other consists primarily of store support center costs that are considered shared services and therefore these selling, general and administrative costs are excluded from our two reporting business segments. These costs include operating expenses for our store support centers in Chesapeake, Virginia and Matthews, North Carolina. During fiscal 2019, we consolidated our Matthews, North Carolina store support center with our store support center in Chesapeake, Virginia. Corporate, support and Other also includes the results of operations for our Summit Pointe property in Chesapeake, Virginia. Amounts for the years ended February 1, 2020 and February 2, 2019 have been reclassified to be comparable to the current year presentation.
Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income (loss) before income taxes, is as follows:
  Year Ended
  January 30, February 1, February 2,
(in millions) 2021 2020 2019
Consolidated Statements of Operations Data:
Net sales:
Dollar Tree $ 13,265.0  $ 12,507.9  $ 11,712.1 
Family Dollar 12,243.4  11,102.9  11,111.2 
Corporate, support and Other 0.9  —  — 
Consolidated Net sales $ 25,509.3  $ 23,610.8  $ 22,823.3 
Gross profit:
Dollar Tree $ 4,543.8  $ 4,342.9  $ 4,137.5 
Family Dollar 3,243.6  2,697.8  2,810.0 
Corporate, support and Other 0.9  —  — 
Consolidated Gross profit $ 7,788.3  $ 7,040.7  $ 6,947.5 
Operating income (loss):
Dollar Tree $ 1,598.0  $ 1,670.2  $ 1,657.4 
Family Dollar 655.6  (74.9) (2,312.8)
Corporate, support and Other (365.7) (333.1) (284.1)
Consolidated Operating income (loss) 1,887.9  1,262.2  (939.5)
Interest expense, net 147.3  162.1  370.0 
Other expense (income), net 0.8  1.4  (0.5)
Income (loss) before income taxes $ 1,739.8  $ 1,098.7  $ (1,309.0)
Depreciation and amortization expense:
Dollar Tree $ 302.3  $ 277.7  $ 254.0 
Family Dollar 352.6  337.9  345.3 
Corporate, support and Other 31.8  30.1  22.1 
Consolidated depreciation and amortization expense $ 686.7  $ 645.7  $ 621.4 
  As of
  January 30, February 1,
(in millions) 2021 2020
Consolidated Balance Sheet Data:
Goodwill:
Dollar Tree $ 424.9  $ 423.8 
Family Dollar 1,559.5  1,559.5 
Consolidated Goodwill $ 1,984.4  $ 1,983.3 
Total assets:
Dollar Tree $ 8,669.3  $ 7,694.0 
Family Dollar 11,562.2  11,484.9 
Corporate, support and Other 464.5  395.7 
Consolidated Total assets $ 20,696.0  $ 19,574.6 
Additions to property, plant and equipment:
Dollar Tree $ 470.4  $ 547.5 
Family Dollar 362.1  425.2 
Corporate, support and Other 66.3  62.1 
Consolidated additions to property, plant and equipment $ 898.8  $ 1,034.8 
Goodwill is reassigned between segments when previously acquired stores are re-bannered between segments. The goodwill related to previously acquired re-bannered stores in 2020 was not material. In 2019, we reassigned $47.6 million of goodwill from Family Dollar to Dollar Tree as a result of re-bannering. In addition, in the fourth quarters of 2019 and 2018, we recorded goodwill impairment charges of $313.0 million and $2.73 billion, respectively, to write down the Family Dollar goodwill. Refer to Note 3 for additional detail regarding impairment of the Family Dollar goodwill.
Disaggregated Revenue
The following table summarizes net sales by merchandise category for our segments:
  Year Ended
  January 30, February 1, February 2,
(in millions) 2021 2020 2019
Dollar Tree segment net sales by
merchandise category:
Consumable $ 6,407.0  48.3  % $ 6,155.3  49.2  % $ 5,703.8  48.7  %
Variety 6,194.8  46.7  % 5,732.1  45.8  % 5,457.8  46.6  %
Seasonal 663.2  5.0  % 620.5  5.0  % 550.5  4.7  %
Total Dollar Tree segment net sales $ 13,265.0  100.0  % $ 12,507.9  100.0  % $ 11,712.1  100.0  %
Family Dollar segment net sales by
merchandise category:
Consumable $ 9,367.8  76.5  % $ 8,604.7  77.5  % $ 8,466.7  76.2  %
Home products 1,078.1  8.8  % 866.0  7.8  % 911.1  8.2  %
Apparel and accessories 690.1  5.6  % 644.0  5.8  % 700.0  6.3  %
Seasonal and electronics 1,107.4  9.1  % 988.2  8.9  % 1,033.4  9.3  %
Total Family Dollar segment net sales $ 12,243.4  100.0  % $ 11,102.9  100.0  % $ 11,111.2  100.0  %