XML 29 R17.htm IDEA: XBRL DOCUMENT
v3.25.3

Discontinued Operations | 9 Months Ended
--- | ---
Nov. 01, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations As previously reported, in fiscal 2024 the Company initiated a formal review of strategic alternatives for the Family Dollar business. This strategic alternatives review concluded in the fourth quarter of fiscal 2024 and resulted in the decision to sell the Family Dollar business. On March 25, 2025, the Company entered into a definitive agreement to sell the Family Dollar business to 1959 Holdings, LLC, and on July 5, 2025, the Company completed the sale for a purchase consideration of $1,007.5 million, subject to certain adjustments, including with respect to working capital and net indebtedness. Net proceeds from the sale consisted of $665 million paid at closing and $22 million to be received post-closing, subject to final adjustment under the terms of the purchase agreement. In addition, the Company monetized approximately $113 million of cash from Family Dollar prior to the closing date primarily through a reduction of net working capital. Together, the total cash monetized from the sale of the Family Dollar business approximates $800 million. As of November 1, 2025, the remaining receivable for estimated net proceeds to be received totaled $14.7 million. The Company has continuing involvement with Family Dollar under a transition services agreement, through which the Company and Family Dollar continue to provide certain services to each other for a period of 18 months following the date of sale. For the 13 and 39 weeks ended November 1, 2025, we recorded $23.8 million and $31.8 million, respectively, of net income from transition services between the two companies. In addition, the Company is guaranteeing lease obligations for 120 Family Dollar stores amounting to approximately $88.0 million for the first year following the date of sale, which represents the full lease obligations on these stores. The amount guaranteed in the second and third year following the date of sale is $20.0 million and $10.0 million, respectively. The fair value of the lease guarantee is immaterial. The results of Family Dollar are presented as discontinued operations in the accompanying unaudited Condensed Consolidated Income Statements for all periods presented. The assets and liabilities of Family Dollar have been reflected as assets and liabilities of discontinued operations in the accompanying unaudited Condensed Consolidated Balance Sheets for all prior periods presented. Financial Information of Discontinued Operations “Income from discontinued operations, net of tax” in the accompanying unaudited Condensed Consolidated Income Statements reflects the after-tax results of the Family Dollar business and does not include any allocation of general corporate overhead expense or interest expense of the Company. The following table summarizes the results of operations of the Family Dollar business that are being reported as discontinued operations:
|  | 13 Weeks Ended |  | 39 Weeks Ended
(in millions) |  | November 1, 2025 |  | November 2, 2024 |  | November 1, 2025 |  | November 2, 2024
Net sales |  | $ | — |  |  | $ | 3,223.7 |  |  | $ | 5,625.5 |  |  | $ | 9,991.7 |
Other revenue |  | — |  |  | 3.3 |  |  | 4.5 |  |  | 9.4 |
Total revenue |  | — |  |  | 3,227.0 |  |  | 5,630.0 |  |  | 10,001.1 |
Cost of sales |  | — |  |  | 2,420.4 |  |  | 3,931.6 |  |  | 7,494.0 |
Selling, general and administrative expenses |  | — |  |  | 803.9 |  |  | 1,218.4 |  |  | 2,478.4 |
Operating income |  | — |  |  | 2.7 |  |  | 480.0 |  |  | 28.7 |
Interest income |  | — |  |  | 0.8 |  |  | 2.7 |  |  | 4.1 |
Loss on held for sale and disposal of discontinued operations |  | — |  |  | — |  |  | 402.5 |  |  | — |
Income from discontinued operations before income taxes |  | — |  |  | 3.5 |  |  | 80.2 |  |  | 32.8 |
Provision for income taxes |  | — |  |  | 2.5 |  |  | 17.4 |  |  | 9.3 |
Income from discontinued operations, net of tax |  | $ | — |  |  | $ | 1.0 |  |  | $ | 62.8 |  |  | $ | 23.5 |
Depreciation expense related to discontinued operations was $116.4 million and $348.2 million for the 13 and 39 weeks ended November 2, 2024, respectively. The Company ceased depreciating and amortizing its long-lived assets for Family Dollar, which primarily included right-of-use assets and property and equipment, during the fourth quarter of fiscal 2024. The following table summarizes the Family Dollar business assets and liabilities classified as discontinued operations in the accompanying unaudited Condensed Consolidated Balance Sheets:
(in millions) |  | November 1, 2025 |  | February 1, 2025 |  | November 2, 2024
ASSETS |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 179.0 |  |  | $ | 219.3 |
Merchandise inventories |  | — |  |  | 2,456.4 |  |  | 2,532.6 |
Other current assets |  | — |  |  | 200.9 |  |  | 205.8 |
Property, plant and equipment, net |  | — |  |  | 2,268.0 |  |  | 2,312.4 |
Operating lease right-of-use assets |  | — |  |  | 2,580.6 |  |  | 2,657.6 |
Goodwill |  | — |  |  | — |  |  | 490.5 |
Trade name intangible asset |  | — |  |  | 750.0 |  |  | 2,150.0 |
Other assets |  | — |  |  | 12.8 |  |  | 13.5 |
Valuation allowance to adjust assets to estimated fair value, less costs of disposal |  | — |  |  | (3,438.8) |  |  | — |
Total assets of discontinued operations |  | $ | — |  |  | $ | 5,008.9 |  |  | $ | 10,581.7 |
LIABILITIES |  |  |  |  |  |
Current portion of operating lease liabilities |  | $ | — |  |  | $ | 598.5 |  |  | $ | 596.5 |
Accounts payable |  | — |  |  | 977.5 |  |  | 995.1 |
Other current liabilities |  | — |  |  | 378.6 |  |  | 377.1 |
Operating lease liabilities, long-term |  | — |  |  | 2,134.5 |  |  | 2,207.2 |
Other liabilities |  | — |  |  | 135.8 |  |  | 125.9 |
Total liabilities of discontinued operations |  | $ | — |  |  | $ | 4,224.9 |  |  | $ | 4,301.8 |
Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell. As of February 1, 2025, we determined that the fair value of the Family Dollar business, including costs to sell was lower than its carrying value and we recorded a $3,438.8 million valuation allowance against the assets held for sale. As of May 3, 2025, we remeasured the fair value of the Family Dollar business, including costs to sell and recorded an additional valuation allowance of $258.4 million. On July 5, 2025, the effective date of the sale, we recorded an additional loss on disposal totaling $144.1 million. In addition, during the first quarter of fiscal 2025, certain assets and liabilities of the Family Dollar business were moved out of held for sale as they will be retained by Dollar Tree. The assets and liabilities included 57 combo stores that will be converted to Dollar Tree stores, and were reclassified as held and used at their fair value, which resulted in a $71.4 million reduction to the valuation allowance. The fair value of the Family Dollar business was estimated using the expected sale price as negotiated with the third party buyer. The valuation allowance was recorded within “Loss on held for sale and disposal of discontinued operations” in the summarized results of operations of discontinued operations for the 39 weeks ended November 1, 2025. Capital expenditures related to discontinued operations were $77.8 million and $393.0 million for the 39 weeks ended November 1, 2025 and November 2, 2024, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration