This excerpt taken from the DLTR DEF 14A filed May 9, 2008.
Performance Units. A participant who has been granted performance units will not realize taxable income at the time of grant, and the company will not be entitled to a deduction at that time. The participant will have compensation income at the
time of distribution equal to the cash and the then fair market value of the distributed performance shares, and the company will have a corresponding deduction.