Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Dollar Tree Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Federal	271,100)	279,500)	210,100)	245,600)	439,300)	480,500)
State	56,300)	87,400)	52,500)	47,800)	23,800)	79,500)
Foreign	100)	200)	100)	400)	300)	800)
Current taxes	327,500)	367,100)	262,700)	293,800)	463,400)	560,800)
Federal	50,300)	32,600)	39,200)	300)	(456,000)	(37,700)
State	(76,500)	(3,800)	(5,600)	(12,300)	(17,700)	(89,900)
Foreign	3,000)	2,000)	(24,600)	—)	—)	—)
Deferred taxes	(23,200)	30,800)	9,000)	(12,000)	(473,700)	(127,600)
Provision for income taxes	304,300)	397,900)	271,700)	281,800)	(10,300)	433,200)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
Current taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Dollar Tree Inc. current taxes increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Deferred taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Dollar Tree Inc. deferred taxes increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Dollar Tree Inc. provision for income taxes increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc., effective income tax rate (EITR) reconciliation

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Statutory U.S. federal income tax rate	21.00%	21.00%	21.00%	21.00%	33.70%	35.00%
State and local income taxes, net of federal income tax benefit	3.70%	3.20%	3.70%	-3.00%	2.50%	3.00%
Non-deductible executive compensation	0.40%	0.40%	0.00%	0.00%	0.00%	0.00%
State tax reserve release	-0.40%	-0.50%	0.00%	0.00%	0.00%	0.00%
Incremental tax expense (benefit) of exercises/vesting of equity-based compensation	-0.50%	0.20%	-0.40%	-0.10%	-0.80%	-0.60%
Work Opportunity Tax Credit	-1.80%	-1.60%	-2.70%	2.00%	-1.30%	-1.60%
State tax election	0.00%	0.00%	0.00%	0.00%	0.00%	-1.40%
Deferred tax rate change	-3.80%	0.00%	0.10%	0.00%	-0.60%	-1.60%
Goodwill impairment	0.00%	0.00%	6.00%	-43.70%	0.00%	0.00%
Change in valuation allowance	0.00%	0.00%	-2.20%	-0.30%	-0.10%	0.10%
Other, net	0.00%	0.20%	-0.80%	1.30%	-1.00%	-0.30%
Effective tax rate, before Tax Cuts and Jobs Act	18.60%	22.90%	24.70%	-22.80%	32.40%	32.60%
Tax Cuts and Jobs Act	0.00%	0.00%	0.00%	1.30%	-33.00%	0.00%
Effective tax rate	18.60%	22.90%	24.70%	-21.50%	-0.60%	32.60%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
Effective tax rate, before Tax Cuts and Jobs Act	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Dollar Tree Inc. effective tax rate, before Tax Cuts and Jobs Act decreased from 2020 to 2021 and from 2021 to 2022.

Dollar Tree Inc., components of deferred tax assets and liabilities

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Deferred rent	—)	—)	—)	44,300)	42,700)	59,900)
Operating lease liabilities	1,647,300)	1,658,400)	1,621,800)	—)	—)	—)
Net operating losses, interest expense and credit carryforwards	91,500)	95,500)	102,200)	90,700)	75,600)	71,400)
Accrued expenses	50,700)	72,900)	26,000)	18,000)	17,800)	71,400)
Accrued compensation expense	34,900)	47,200)	31,600)	31,600)	23,200)	71,300)
Inventory	24,400)	—)	—)	—)	—)	—)
State tax election	15,800)	17,400)	19,300)	20,900)	22,800)	20,400)
Other	2,400)	3,200)	2,400)	3,000)	—)	3,400)
Deferred tax assets	1,867,000)	1,894,600)	1,803,300)	208,500)	182,100)	297,800)
Valuation allowance	(13,000)	(16,800)	(18,500)	(42,600)	(38,600)	(49,700)
Deferred tax assets, net	1,854,000)	1,877,800)	1,784,800)	165,900)	143,500)	248,100)
Operating lease right-of-use assets	(1,578,400)	(1,587,200)	(1,550,100)	—)	—)	—)
Other intangibles	(780,900)	(840,400)	(852,200)	(864,000)	(880,500)	(1,368,700)
Property and equipment	(435,600)	(410,500)	(304,300)	(235,500)	(218,500)	(331,300)
Prepaids	(26,000)	(25,200)	(24,100)	(21,800)	—)	—)
Inventory	—)	(4,800)	(14,400)	(17,800)	(27,100)	(7,000)
Other	—)	—)	—)	—)	(2,600)	—)
Deferred tax liabilities	(2,820,900)	(2,868,100)	(2,745,100)	(1,139,100)	(1,128,700)	(1,707,000)
Deferred income taxes, net	(966,900)	(990,300)	(960,300)	(973,200)	(985,200)	(1,458,900)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Dollar Tree Inc. deferred tax assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Dollar Tree Inc. deferred tax assets, net increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Deferred income taxes, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Dollar Tree Inc. deferred income taxes, net decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
	Deferred tax assets	20,300)	23,200)	24,400)	—)	—)	—)
	Deferred tax liabilities	987,200)	1,013,500)	984,700)	973,200)	985,200)	1,458,900)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Dollar Tree Inc. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Dollar Tree Inc. deferred tax liabilities increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc., adjustments to financial statements

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Adjustment to Total Assets
Total assets (as reported)	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Less: Noncurrent deferred tax assets, net	20,300)	23,200)	24,400)	—)	—)	—)
Total assets (adjusted)	21,701,500)	20,672,800)	19,550,200)	13,501,200)	16,332,800)	15,701,600)
Adjustment to Total Liabilities
Total liabilities (as reported)	14,003,300)	13,410,700)	13,319,800)	7,858,300)	9,150,500)	10,312,100)
Less: Noncurrent deferred tax liabilities, net	987,200)	1,013,500)	984,700)	973,200)	985,200)	1,458,900)
Total liabilities (adjusted)	13,016,100)	12,397,200)	12,335,100)	6,885,100)	8,165,300)	8,853,200)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Less: Net deferred tax assets (liabilities)	(966,900)	(990,300)	(960,300)	(973,200)	(985,200)	(1,458,900)
Shareholders’ equity (adjusted)	8,685,400)	8,275,600)	7,215,100)	6,616,100)	8,167,500)	6,848,400)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Add: Deferred income tax expense (benefit)	(23,200)	30,800)	9,000)	(12,000)	(473,700)	(127,600)
Net income (loss) (adjusted)	1,304,700)	1,372,700)	836,000)	(1,602,800)	1,240,600)	768,600)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Dollar Tree Inc., Financial Data: Reported vs. Adjusted

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Dollar Tree Inc., adjusted financial ratios

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net Profit Margin
Reported net profit margin	5.05%	5.26%	3.50%	-6.97%	7.71%	4.33%
Adjusted net profit margin	4.96%	5.38%	3.54%	-7.02%	5.58%	3.71%
Total Asset Turnover
Reported total asset turnover	1.21	1.23	1.21	1.69	1.36	1.32
Adjusted total asset turnover	1.21	1.23	1.21	1.69	1.36	1.32
Financial Leverage
Reported financial leverage	2.81	2.84	3.13	2.39	2.27	2.91
Adjusted financial leverage	2.50	2.50	2.71	2.04	2.00	2.29
Return on Equity (ROE)
Reported ROE	17.20%	18.42%	13.22%	-28.19%	23.87%	16.63%
Adjusted ROE	15.02%	16.59%	11.59%	-24.23%	15.19%	11.22%
Return on Assets (ROA)
Reported ROA	6.11%	6.48%	4.22%	-11.78%	10.50%	5.71%
Adjusted ROA	6.01%	6.64%	4.28%	-11.87%	7.60%	4.90%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Dollar Tree Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Dollar Tree Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Dollar Tree Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Dollar Tree Inc. adjusted ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Dollar Tree Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Dollar Tree Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Profitability Ratio
Net profit margin¹	5.05%	5.26%	3.50%	-6.97%	7.71%	4.33%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	1,304,700)	1,372,700)	836,000)	(1,602,800)	1,240,600)	768,600)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Profitability Ratio
Adjusted net profit margin²	4.96%	5.38%	3.54%	-7.02%	5.58%	3.71%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 1,327,900 ÷ 26,309,800 = 5.05%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × 1,304,700 ÷ 26,309,800 = 4.96%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Dollar Tree Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Total assets	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Activity Ratio
Total asset turnover¹	1.21	1.23	1.21	1.69	1.36	1.32
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Adjusted total assets	21,701,500)	20,672,800)	19,550,200)	13,501,200)	16,332,800)	15,701,600)
Activity Ratio
Adjusted total asset turnover²	1.21	1.23	1.21	1.69	1.36	1.32

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 26,309,800 ÷ 21,721,800 = 1.21

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 26,309,800 ÷ 21,701,500 = 1.21

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Dollar Tree Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Solvency Ratio
Financial leverage¹	2.81	2.84	3.13	2.39	2.27	2.91
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	21,701,500)	20,672,800)	19,550,200)	13,501,200)	16,332,800)	15,701,600)
Adjusted shareholders’ equity	8,685,400)	8,275,600)	7,215,100)	6,616,100)	8,167,500)	6,848,400)
Solvency Ratio
Adjusted financial leverage²	2.50	2.50	2.71	2.04	2.00	2.29

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 21,721,800 ÷ 7,718,500 = 2.81

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 21,701,500 ÷ 8,685,400 = 2.50

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Dollar Tree Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Profitability Ratio
ROE¹	17.20%	18.42%	13.22%	-28.19%	23.87%	16.63%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	1,304,700)	1,372,700)	836,000)	(1,602,800)	1,240,600)	768,600)
Adjusted shareholders’ equity	8,685,400)	8,275,600)	7,215,100)	6,616,100)	8,167,500)	6,848,400)
Profitability Ratio
Adjusted ROE²	15.02%	16.59%	11.59%	-24.23%	15.19%	11.22%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × 1,327,900 ÷ 7,718,500 = 17.20%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted shareholders’ equity
= 100 × 1,304,700 ÷ 8,685,400 = 15.02%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Dollar Tree Inc. adjusted ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Total assets	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Profitability Ratio
ROA¹	6.11%	6.48%	4.22%	-11.78%	10.50%	5.71%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	1,304,700)	1,372,700)	836,000)	(1,602,800)	1,240,600)	768,600)
Adjusted total assets	21,701,500)	20,672,800)	19,550,200)	13,501,200)	16,332,800)	15,701,600)
Profitability Ratio
Adjusted ROA²	6.01%	6.64%	4.28%	-11.87%	7.60%	4.90%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 1,327,900 ÷ 21,721,800 = 6.11%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 1,304,700 ÷ 21,701,500 = 6.01%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Dollar Tree Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Dollar Tree Inc. (NASDAQ:DLTR)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Dollar Tree Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Dollar Tree Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)