Years Ended January 29, 2005 and January 31, 2004, Month Ended February 1, 2003 and Year Ended December 31, 2002 CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY  AND COMPREHENSIVE INCOME (LOSS) DOLLAR TREE STORES, INC. • 2004 ANNUAL REPORT 29 Accumulated Common Additional Other Share- Stock Common Paid-in Comprehensive Unearned Retained holders’ (In thousands) Shares Stock Capital Loss Compensation Earnings Equity Balance at December 31, 2001 112,506  $ 1,125  $ 167,151  $ (378) $ —  $ 483,838 $ 651,736 Net income for the year ended December 31, 2002 —  —  —  —  —  154,647  154,647 Other comprehensive loss (Note 7) —  —  —  (995) —  —  (995) Total comprehensive income 153,652 Issuance of stock under Employee Stock Purchase Plan and other plans (Note 9) 96  1  2,038  —  —  —  2,039 Exercise of stock options, including income tax benefit of $10,696 (Note 9) 1,633  16  41,117  —  —  —  41,133 Restricted stock issuance and and amortization (Note 9) 9  —  275  —  (117) —  158 Settlement of merger-related contingencies (57) —  6,686  —  —  —  6,686 Balance at December 31, 2002 114,187  1,142  217,267  (1,373) (117) 638,485  855,404 Net loss for the month ended  February 1, 2003 —  —  —  —  —  (10,525) (10,525) Other comprehensive income (Note 7) —  —  —  96  —  —  96 Total comprehensive income (10,429) Issuance of stock under Employee Stock Purchase Plan and other plans (Note 9) 32  —  614  —  —  —  614 Exercise of stock options, including income tax benefit of $65 (Note 9) 12  —  225  —  —  —  225 Restricted stock amortization (Note 9) —  —  —  —  5  —  5 Balance at February 1, 2003 114,231  1,142  218,106  (1,277) (112) 627,960  845,819 Net income for the year ended January 31, 2004 —  —  —  —  —  177,583  177,583 Other comprehensive income (Note 7) —  —  —  307  —  —  307 Total comprehensive income 177,890 Issuance of stock under Employee Stock Purchase Plan and other plans (Note 9) 132  1  2,724  —  —  —  2,725  Exercise of stock options, including income tax benefit of $5,620 (Note 9) 994  10  25,060  —  —  —  25,070 Repurchase and retirement of shares (Note 7) (1,265) (12) (38,041) —  —  —  (38,053) Restricted stock amortization (Note 9) —  —  —  —  50  —  50 Settlement of merger-related contingencies (8) —  1,021  —  —  —  1,021 Balance at January 31, 2004 114,084  1,141  208,870  (970) (62) 805,543  1,014,522 Net income for the year ended January 29, 2005 —  —  —  —  —  180,250  180,250  Other comprehensive income (Note 7) —  —  —  676  —  —  676 Total comprehensive income  180,926 Issuance of stock under Employee Stock Purchase Plan and other plans (Note 9) 139  1  3,285  —  —  —  3,286 Exercise of stock options, including income tax benefit of $2,144 (Note 9) 608  6  13,957  —  —  —  13,963 Repurchase and retirement of shares (Note 7) (1,810) (18) (48,593) —  —  —  (48,611) Restricted stock issuance and amortization (Note 9) —  —  165  —  (39) —  126 Balance at January 29, 2005 113,021 $1,130 $177,684 $ (294) $ (101) $985,793 $1,164,212 See accompanying Notes to Consolidated Financial Statements.