Name: Dollar Tree Inc. (NASDAQ:DLTR) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Dollar Tree Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Current portion of long-term debt	—)	—)	250,000)	—)	915,900)	152,100)
Current portion of operating lease liabilities	1,407,800)	1,348,200)	1,279,300)	—)	—)	—)
Accounts payable	1,884,200)	1,480,500)	1,336,500)	1,416,400)	1,174,800)	1,119,600)
Income taxes payable	82,600)	86,300)	62,700)	60,000)	31,500)	90,000)
Taxes, other than income taxes	313,500)	305,000)	183,300)	159,500)	176,600)	163,100)
Compensation and benefits	123,800)	162,800)	102,800)	122,100)	155,200)	194,900)
Insurance	121,500)	115,400)	112,000)	106,000)	105,400)	101,700)
Accrued construction costs	68,300)	44,900)	51,100)	43,200)	45,000)	30,300)
Accrued supplies	27,400)	25,200)	—)	—)	—)	—)
Other	147,500)	162,000)	168,800)	188,500)	254,700)	254,200)
Other current liabilities	802,000)	815,300)	618,000)	619,300)	736,900)	744,200)
Current liabilities	4,176,600)	3,730,300)	3,546,500)	2,095,700)	2,859,100)	2,105,900)
Long-term debt, net, excluding current portion	3,417,000)	3,226,200)	3,522,200)	4,265,300)	4,762,100)	6,169,700)
Operating lease liabilities, long-term	5,145,500)	5,065,500)	4,979,500)	—)	—)	—)
Unfavorable lease rights, net of accumulated amortization	—)	—)	—)	78,800)	100,000)	124,000)
Deferred income taxes, net	987,200)	1,013,500)	984,700)	973,200)	985,200)	1,458,900)
Income taxes payable, long-term	20,900)	22,600)	28,900)	35,400)	43,800)	71,200)
Other liabilities	256,100)	352,600)	258,000)	409,900)	400,300)	382,400)
Noncurrent liabilities	9,826,700)	9,680,400)	9,773,300)	5,762,600)	6,291,400)	8,206,200)
Total liabilities	14,003,300)	13,410,700)	13,319,800)	7,858,300)	9,150,500)	10,312,100)
Common stock, par value $0.01	2,200)	2,300)	2,400)	2,400)	2,400)	2,400)
Additional paid-in capital	1,243,900)	2,138,500)	2,454,400)	2,602,700)	2,545,300)	2,472,100)
Accumulated other comprehensive loss	(35,200)	(35,200)	(39,800)	(38,300)	(32,300)	(37,600)
Retained earnings	6,507,600)	5,179,700)	3,837,800)	3,076,100)	4,666,900)	2,952,600)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Total liabilities and shareholders’ equity	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)

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).

The balance sheet exhibits a significant expansion in total liabilities and shareholders' equity over the six-year period, growing from 15.7 billion US dollars in January 2017 to 21.7 billion US dollars by January 2022. A primary driver of this expansion is a structural shift in how liabilities are recognized, particularly regarding lease obligations, alongside a steady accumulation of retained earnings.

Current Liabilities Trends: Current liabilities nearly doubled from 2.1 billion US dollars in 2017 to 4.2 billion US dollars in 2022. This growth was driven largely by a substantial increase in accounts payable, which rose from 1.1 billion US dollars to 1.9 billion US dollars. Additionally, the introduction of current portion of operating lease liabilities starting in 2020 added approximately 1.3 billion to 1.4 billion US dollars to the current liability profile annually, reflecting changes in accounting standards for lease recognition.
Noncurrent Liabilities and Debt Management: A notable divergence is observed between traditional long-term debt and lease obligations. Long-term debt, net of current portions, decreased consistently from 6.2 billion US dollars in 2017 to 3.4 billion US dollars in 2022, indicating a strategic reduction in borrowed capital. However, noncurrent liabilities surged in 2020 due to the recognition of long-term operating lease liabilities, which stabilized at approximately 5.1 billion US dollars by 2022. This suggests a transition from a debt-heavy capital structure to one dominated by lease-based obligations.
Equity and Retained Earnings: Shareholders' equity demonstrated a general upward trajectory, increasing from 5.4 billion US dollars in 2017 to 7.7 billion US dollars in 2022. This growth is primarily attributed to retained earnings, which more than doubled from 3.0 billion US dollars to 6.5 billion US dollars, signaling strong internal capital generation. Conversely, additional paid-in capital saw a sharp decline between 2021 and 2022, dropping from 2.1 billion US dollars to 1.2 billion US dollars.
Total Liability Profile: Total liabilities grew from 10.3 billion US dollars in 2017 to 14.0 billion US dollars in 2022. While the absolute value increased, the composition shifted. The spike in 2020, where total liabilities jumped from 7.9 billion to 13.3 billion US dollars, is almost entirely explained by the capitalization of operating leases on the balance sheet rather than an increase in operational spending or external borrowing.

In summary, the financial position is characterized by a reduction in traditional long-term debt offset by the recognition of significant lease liabilities. The concurrent growth in retained earnings indicates a healthy capacity for self-funding and equity accumulation despite the increase in total recognized liabilities.

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