Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Dollar Tree Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Goodwill impairment	—)	—)	313,000)	2,727,000)	—)	—)
Receivable impairment	—)	—)	—)	—)	18,500)	—)
Depreciation and amortization	716,000)	686,600)	645,400)	621,100)	611,200)	637,500)
Provision for deferred income taxes	(23,200)	30,700)	9,100)	(12,100)	(473,500)	(124,100)
Stock-based compensation expense	79,900)	83,900)	61,400)	63,100)	65,700)	61,600)
Amortization of debt discount and debt-issuance costs	8,900)	4,000)	6,900)	57,200)	15,400)	55,200)
Other non-cash adjustments to net income (loss)	11,200)	19,000)	24,500)	7,800)	10,900)	9,400)
Loss on debt extinguishment	43,800)	—)	—)	114,700)	—)	—)
Merchandise inventories	(940,400)	97,100)	13,600)	(369,200)	(300,900)	21,900)
Other current assets	(49,900)	1,700)	(8,400)	(21,100)	(117,200)	117,200)
Other assets	(2,600)	(7,000)	8,200)	900)	2,600)	—)
Accounts payable	403,800)	142,600)	(79,800)	242,600)	54,500)	(133,800)
Income taxes payable	(3,700)	23,600)	2,700)	28,500)	(58,500)	77,100)
Other current liabilities	(36,500)	203,400)	24,300)	(105,400)	(22,700)	30,400)
Other liabilities	(98,200)	88,200)	(14,600)	1,700)	(10,100)	24,700)
Operating lease right-of-use assets and liabilities, net	(5,500)	600)	36,500)	—)	—)	—)
Changes in operating assets and liabilities	(733,000)	550,200)	(17,500)	(222,000)	(452,300)	137,500)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	103,600)	1,374,400)	1,042,800)	3,356,800)	(204,100)	777,100)
Net cash provided by operating activities	1,431,500)	2,716,300)	1,869,800)	1,766,000)	1,510,200)	1,673,300)
Capital expenditures	(1,021,200)	(898,800)	(1,034,800)	(817,100)	(632,200)	(564,700)
Proceeds from governmental grant	2,900)	—)	16,500)	—)	—)	—)
Purchase of restricted investments	—)	—)	—)	—)	—)	(36,100)
Proceeds from (payments for) fixed asset disposition	(1,600)	9,100)	(1,900)	400)	300)	(900)
Proceeds from sale of unrestricted investments	—)	—)	—)	—)	4,000)	118,100)
Net cash used in investing activities	(1,019,900)	(889,700)	(1,020,200)	(816,700)	(627,900)	(483,600)
Proceeds from long-term debt, net of discount	1,197,400)	—)	—)	4,775,800)	—)	2,962,500)
Principal payments for long-term debt	(1,000,000)	(550,000)	(500,000)	(6,214,700)	(659,100)	(4,036,200)
Debt-issuance and debt extinguishment costs	(59,300)	—)	—)	(155,300)	—)	(6,100)
Proceeds from revolving credit facility	—)	750,000)	—)	50,000)	—)	140,000)
Repayments of revolving credit facility	—)	(750,000)	—)	(50,000)	—)	(140,000)
Proceeds from stock issued pursuant to stock-based compensation plans	17,800)	17,000)	15,200)	17,500)	35,000)	41,500)
Cash paid for taxes on exercises/vesting of stock-based compensation	(42,400)	(16,900)	(25,000)	(23,200)	(27,400)	(22,200)
Payments for repurchase of stock	(950,000)	(400,000)	(200,000)	—)	—)	—)
Net cash used in financing activities	(836,500)	(949,900)	(709,800)	(1,599,900)	(651,500)	(1,060,500)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(400)	900)	(500)	(500)	600)	1,100)
Net increase (decrease) in cash, cash equivalents and restricted cash	(425,300)	877,600)	139,300)	(651,100)	231,400)	130,300)
Cash, cash equivalents and restricted cash at beginning of year	1,463,600)	586,000)	446,700)	1,097,800)	866,400)	736,100)
Cash, cash equivalents and restricted cash at end of year	1,038,300)	1,463,600)	586,000)	446,700)	1,097,800)	866,400)

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 analyzed data reveals several notable trends in the financial performance and position over the six-year period from early 2017 to early 2022.

Net Income (Loss): Net income showed marked volatility, with positive earnings in most years except for fiscal 2019, which recorded a significant loss of approximately $1.59 billion, largely influenced by impairments. Excluding this outlier year, net income generally trended positively, rising from $896 million in 2017 to over $1.3 billion by 2021 and 2022.
Goodwill and Receivable Impairments: There was a major goodwill impairment recorded in 2019 amounting to $2.73 billion, with a smaller impairment in 2020. Receivable impairment was documented only in 2018 at $18.5 million. These impairments notably impacted the net income volatility, particularly in 2019.
Depreciation and Amortization: Depreciation and amortization expenses have gradually increased from $637.5 million in 2017 to $716 million in 2022, indicating steady capital asset utilization and amortization costs over time.
Provision for Deferred Income Taxes: These provisions fluctuated widely, with a substantial negative provision of $473.5 million in 2018 and smaller amounts near zero in other years, suggesting varying deferred tax impacts depending on annual accounting adjustments and tax strategies.
Stock-Based Compensation: Stock-based compensation expenses increased over the period, moving from $61.6 million in 2017 to nearly $80 million in 2022, reflecting possible growth in employee incentive plans.
Inventory and Working Capital Items: Merchandise inventories showed volatile movements, including negative balances in 2018, 2019, and significantly in 2022, implying inventory write-downs or adjustments. Other current assets and liabilities also fluctuated, with notable swings in accounts payable and other current liabilities, indicating variability in working capital management.
Operating Cash Flow: Net cash provided by operating activities generally increased from $1.67 billion in 2017 to a peak of $2.72 billion in 2021 before declining to $1.43 billion in 2022. This pattern suggests improving operational efficiency up to 2021, followed by a decline.
Investing Activities: Capital expenditures steadily increased over the years, reflecting ongoing investment in fixed assets, with amounts ranging from approximately $565 million in 2017 to over $1 billion annually by 2020-2022. Net cash used in investing activities mirrored this trend, remaining significantly negative throughout the period.
Financing Activities: Cash flows from financing activities were predominantly negative, with large principal payments on long-term debt especially in 2017 and 2019, indicating debt repayment efforts. Stock repurchase payments rose considerably from 2020 onward, peaking at $950 million in 2022, suggesting an increased focus on returning capital to shareholders. Proceeds from long-term debt varied substantially, including a large inflow in 2019.
Cash Position: The year-end cash and equivalents showed volatility, falling sharply in 2019 to $447 million and then increasing to $1.46 billion in 2021 before declining again to $1.04 billion in 2022. The net change in cash mirrored these movements.

Overall, the financial data reflects a company managing significant fluctuations in earnings primarily due to impairment charges, while steadily investing in capital assets and managing debt repayments. Operating cash generation remains robust despite these challenges. The increased stock repurchases in later years may indicate strategic capital allocation decisions aimed at enhancing shareholder value.

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Dollar Tree Inc. (NASDAQ:DLTR)

Cash Flow Statement