Guarantor subsidiaries (Tables)

12 Months Ended

Feb. 03, 2012

Guarantor subsidiaries

Condensed Consolidated Balance Sheets

	February 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATED TOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents	$	1,844		$	102,627	$	21,655	$	—		$	126,126
Merchandise inventories		—			2,009,206		—		—			2,009,206
Deferred income taxes		10,078			—		21,729		(31,807	)		—
Prepaid expenses and other current assets		551,457			4,685,263		5,768		(5,102,746	)		139,742
Total current assets		563,379			6,797,096		49,152		(5,134,553	)		2,275,074
Net property and equipment		113,661			1,681,072		227		—			1,794,960
Goodwill		4,338,589			—		—		—			4,338,589
Other intangible assets, net		1,199,200			36,754		—		—			1,235,954
Deferred income taxes		—			—		49,531		(49,531	)		—
Other assets, net		6,575,574			13,260		323,736		(6,868,627	)		43,943
Total assets	$	12,790,403		$	8,528,182	$	422,646	$	(12,052,711	)	$	9,688,520
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations	$	—		$	590	$	—	$	—		$	590
Accounts payable		4,654,237			1,451,277		52,362		(5,093,789	)		1,064,087
Accrued expenses and other		79,010			264,575		62,447		(8,957	)		397,075
Income taxes payable		12,972			5,013		26,443		—			44,428
Deferred income taxes		—			35,529		—		(31,807	)		3,722
Total current liabilities		4,746,219			1,756,984		141,252		(5,134,553	)		1,509,902
Long-term obligations		2,879,475			3,340,075		—		(3,601,659	)		2,617,891
Deferred income taxes		435,791			270,736		—		(49,531	)		656,996
Other liabilities		54,336			33,156		141,657		—			229,149
Redeemable common stock		6,087			—		—		—			6,087
Shareholders' equity:
Preferred stock		—			—		—		—			—
Common stock		295,828			23,855		100		(23,955	)		295,828
Additional paid-in capital		2,960,940			431,253		19,900		(451,153	)		2,960,940
Retained earnings		1,416,918			2,672,123		119,737		(2,791,860	)		1,416,918
Accumulated other comprehensive loss		(5,191	)		—		—		—			(5,191	)
Total shareholders' equity		4,668,495			3,127,231		139,737		(3,266,968	)		4,668,495
Total liabilities and shareholders' equity	$	12,790,403		$	8,528,182	$	422,646	$	(12,052,711	)	$	9,688,520

	January 28, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATED TOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents	$	111,545		$	364,404	$	21,497	$	—		$	497,446
Merchandise inventories		—			1,765,433		—		—			1,765,433
Income taxes receivable		13,529			—		—		(13,529	)		—
Deferred income taxes		8,877			—		6,825		(15,702	)		—
Prepaid expenses and other current assets		741,352			3,698,117		4,454		(4,338,977	)		104,946
Total current assets		875,303			5,827,954		32,776		(4,368,208	)		2,367,825
Net property and equipment		105,155			1,419,133		287		—			1,524,575
Goodwill		4,338,589			—		—		—			4,338,589
Other intangible assets, net		1,199,200			57,722		—		—			1,256,922
Deferred income taxes		—			—		47,690		(47,690	)		—
Other assets, net		5,337,522			12,675		304,285		(5,596,171	)		58,311
Total assets	$	11,855,769		$	7,317,484	$	385,038	$	(10,012,069	)	$	9,546,222
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations	$	—		$	1,157	$	—	$	—		$	1,157
Accounts payable		3,691,564			1,541,593		50,824		(4,330,340	)		953,641
Accrued expenses and other		68,398			226,225		61,755		(8,637	)		347,741
Income taxes payable		11,922			13,246		14,341		(13,529	)		25,980
Deferred income taxes		—			52,556		—		(15,702	)		36,854
Total current liabilities		3,771,884			1,834,777		126,920		(4,368,208	)		1,365,373
Long-term obligations		3,534,447			3,000,877		—		(3,248,254	)		3,287,070
Deferred income taxes		417,874			228,381		—		(47,690	)		598,565
Other liabilities		67,932			27,250		136,400		—			231,582
Redeemable common stock		9,153			—		—		—			9,153
Shareholders' equity:
Preferred stock		—			—		—		—			—
Common stock		298,819			23,855		100		(23,955	)		298,819
Additional paid-in capital		2,945,024			431,253		19,900		(451,153	)		2,945,024
Retained earnings		830,932			1,771,091		101,718		(1,872,809	)		830,932
Accumulated other comprehensive loss		(20,296	)		—		—		—			(20,296	)
Total shareholders' equity		4,054,479			2,226,199		121,718		(2,347,917	)		4,054,479
Total liabilities and shareholders' equity	$	11,855,769		$	7,317,484	$	385,038	$	(10,012,069	)	$	9,546,222

Condensed Consolidated Statements of Income

	For the year ended February 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF INCOME:
Net sales	$	338,903		$	14,807,188		$	84,940		$	(423,843	)	$	14,807,188
Cost of goods sold		—			10,109,278			—			—			10,109,278
Gross profit		338,903			4,697,910			84,940			(423,843	)		4,697,910
Selling, general and administrative expenses		308,094			3,242,276			80,579			(423,843	)		3,207,106
Operating profit		30,809			1,455,634			4,361			—			1,490,804
Interest income		(39,526	)		(21,954	)		(20,924	)		82,313			(91	)
Interest expense		246,905			40,362			37			(82,313	)		204,991
Other (income) expense		60,615			—			—			—			60,615
Income (loss) before income taxes		(237,185	)		1,437,226			25,248			—			1,225,289
Income tax expense (benefit)		(84,819	)		536,194			7,229			—			458,604
Equity in subsidiaries' earnings, net of taxes		919,051			—			—			(919,051	)		—
Net income	$	766,685		$	901,032		$	18,019		$	(919,051	)	$	766,685

	For the year ended January 28, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF INCOME:
Net sales	$	311,280		$	13,035,000		$	84,878		$	(396,158	)	$	13,035,000
Cost of goods sold		—			8,858,444			—			—			8,858,444
Gross profit		311,280			4,176,556			84,878			(396,158	)		4,176,556
Selling, general and administrative expenses		283,069			2,948,346			67,234			(396,158	)		2,902,491
Operating profit		28,211			1,228,210			17,644			—			1,274,065
Interest income		(44,677	)		(7,025	)		(19,986	)		71,468			(220	)
Interest expense		300,934			44,723			23			(71,468	)		274,212
Other (income) expense		15,101			—			—			—			15,101
Income (loss) before income taxes		(243,147	)		1,190,512			37,607			—			984,972
Income tax expense (benefit)		(102,448	)		447,881			11,682			—			357,115
Equity in subsidiaries' earnings, net of taxes		768,556			—			—			(768,556	)		—
Net income	$	627,857		$	742,631		$	25,925		$	(768,556	)	$	627,857

	For the year ended January 29, 2010
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF INCOME:
Net sales	$	306,036		$	11,796,380		$	91,265		$	(397,301	)	$	11,796,380
Cost of goods sold		—			8,106,509			—			—			8,106,509
Gross profit		306,036			3,689,871			91,265			(397,301	)		3,689,871
Selling, general and administrative expenses		337,224			2,734,793			61,897			(397,301	)		2,736,613
Operating profit (loss)		(31,188	)		955,078			29,368			—			953,258
Interest income		(52,047	)		(10,968	)		(19,674	)		82,545			(144	)
Interest expense		375,280			52,980			29			(82,545	)		345,744
Other (income) expense		55,542			—			—			—			55,542
Income (loss) before income taxes		(409,963	)		913,066			49,013			—			552,116
Income tax expense (benefit)		(149,478	)		346,117			16,035			—			212,674
Equity in subsidiaries' earnings, net of taxes		599,927			—			—			(599,927	)		—
Net income	$	339,442		$	566,949		$	32,978		$	(599,927	)	$	339,442

Condensed Consolidated Statements of Cash Flows

	For the year ended February 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	766,685		$	901,032		$	18,019		$	(919,051	)	$	766,685
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		31,793			243,485			130			—			275,408
Deferred income taxes		1,649			25,328			(16,745	)		—			10,232
Tax benefit of stock options		(33,102	)		—			—			—			(33,102	)
Loss on debt retirement, net		60,303			—			—			—			60,303
Noncash share-based compensation		15,250			—			—			—			15,250
Noncash inventory adjustments and asset impairments		—			48,673			—			—			48,673
Other noncash gains and losses		653			4,864			—			—			5,517
Equity in subsidiaries' earnings, net		(919,051	)		—			—			919,051			—
Change in operating assets and liabilities:
Merchandise inventories		—			(291,492	)		—			—			(291,492	)
Prepaid expenses and other current assets		(19,361	)		(12,671	)		(2,522	)		—			(34,554	)
Accounts payable		(17,678	)		120,607			1,513			—			104,442
Accrued expenses and other liabilities		20,799			45,015			5,949			—			71,763
Income taxes		47,681			(8,233	)		12,102			—			51,550
Other		(3	)		(121	)		(71	)		—			(195	)
Net cash provided by (used in) operating activities		(44,382	)		1,076,487			18,375			—			1,050,480
Cash flows from investing activities:
Purchases of property and equipment		(30,403	)		(484,388	)		(70	)		—			(514,861	)
Proceeds from sales of property and equipment		33			993			—			—			1,026
Net cash used in investing activities		(30,370	)		(483,395	)		(70	)		—			(513,835	)
Cash flows from financing activities:
Issuance of common stock		177			—			—			—			177
Repayments of long-term obligations		(910,677	)		(1,274	)		—			—			(911,951	)
Borrowings under revolving credit facility		1,157,800			—			—			—			1,157,800
Repayments of borrowings under revolving credit facility		(973,100	)		—			—			—			(973,100	)
Repurchase of common stock from principal shareholder		(185,000	)		—			—			—			(185,000	)
Equity settlements with employees, net of taxes paid		(28,993	)		—			—			—			(28,993	)
Tax benefit of stock options		33,102			—			—			—			33,102
Changes in intercompany note balances, net		871,742			(853,595	)		(18,147	)		—			—
Net cash provided by (used in) financing activities		(34,949	)		(854,869	)		(18,147	)		—			(907,965	)
Net increase (decrease) in cash and cash equivalents		(109,701	)		(261,777	)		158			—			(371,320	)
Cash and cash equivalents, beginning of year		111,545			364,404			21,497			—			497,446
Cash and cash equivalents, end of year	$	1,844		$	102,627		$	21,655		$	—		$	126,126

	For the year ended January 28, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	627,857		$	742,631		$	25,925		$	(768,556	)	$	627,857
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		33,015			221,851			61			—			254,927
Deferred income taxes		17,817			47,719			(14,551	)		—			50,985
Tax benefit of stock options		(13,905	)		—			—			—			(13,905	)
Loss on debt retirement, net		14,576			—			—			—			14,576
Noncash share-based compensation		15,956			—			—			—			15,956
Noncash inventory adjustments and asset impairments		—			7,607			—			—			7,607
Other noncash gains and losses		1,395			4,547			—			—			5,942
Equity in subsidiaries' earnings, net		(768,556	)		—			—			768,556			—
Change in operating assets and liabilities:
Merchandise inventories		—			(251,809	)		—			—			(251,809	)
Prepaid expenses and other current assets		(1,646	)		(3,642	)		(4,869	)		—			(10,157	)
Accounts payable		(5,446	)		124,120			4,750			—			123,424
Accrued expenses and other liabilities		(28,442	)		(12,410	)		(1,576	)		—			(42,428	)
Income taxes		18,136			14,891			9,876			—			42,903
Other		816			(2,008	)		(2	)		—			(1,194	)
Net cash provided by (used in) operating activities		(88,427	)		893,497			19,614			—			824,684
Cash flows from investing activities:
Purchases of property and equipment		(22,830	)		(397,322	)		(243	)		—			(420,395	)
Proceeds from sales of property and equipment		—			1,448			—			—			1,448
Net cash used in investing activities		(22,830	)		(395,874	)		(243	)		—			(418,947	)
Cash flows from financing activities:
Issuance of common stock		631			—			—			—			631
Repayments of long-term obligations		(129,217	)		(1,963	)		—			—			(131,180	)
Equity settlements with employees, net of taxes paid		(13,723	)		—			—			—			(13,723	)
Tax benefit of stock options		13,905			—			—			—			13,905
Changes in intercompany note balances, net		253,586			(234,257	)		(19,329	)		—			—
Net cash provided by (used in) financing activities		125,182			(236,220	)		(19,329	)		—			(130,367	)
Net increase (decrease) in cash and cash equivalents		13,925			261,403			42			—			275,370
Cash and cash equivalents, beginning of year		97,620			103,001			21,455			—			222,076
Cash and cash equivalents, end of year	$	111,545		$	364,404		$	21,497		$	—		$	497,446

	For the year ended January 29, 2010
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	339,442		$	566,949		$	32,978		$	(599,927	)	$	339,442
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		36,541			220,048			182			—			256,771
Deferred income taxes		(18,571	)		67,317			(33,886	)		—			14,860
Tax benefit of stock options		(5,390	)		—			—			—			(5,390	)
Loss on debt retirement, net		55,265			—			—			—			55,265
Noncash share-based compensation		17,295			—			—			—			17,295
Noncash inventory adjustments and asset impairments		—			647			—			—			647
Other noncash gains and losses		3,221			4,699			—			—			7,920
Equity in subsidiaries' earnings, net		(599,927	)		—			—			599,927			—
Change in operating assets and liabilities:
Merchandise inventories		—			(100,248	)		—			—			(100,248	)
Prepaid expenses and other current assets		2,582			(10,252	)		372			—			(7,298	)
Accounts payable		26,535			79,515			(1	)		—			106,049
Accrued expenses and other liabilities		(20,672	)		10,494			(2,465	)		—			(12,643	)
Income taxes		48,494			(50,112	)		2,771			—			1,153
Other		(3,203	)		2,171			32			—			(1,000	)
Net cash provided by (used in) operating activities		(118,388	)		791,228			(17	)		—			672,823
Cash flows from investing activities:
Purchases of property and equipment		(34,647	)		(216,032	)		(68	)		—			(250,747	)
Proceeds from sales of property and equipment		—			2,701			—			—			2,701
Net cash used in investing activities		(34,647	)		(213,331	)		(68	)		—			(248,046	)
Cash flows from financing activities:
Issuance of common stock		443,753			—			—			—			443,753
Repayments of long-term obligations		(782,518	)		(1,662	)		—			—			(784,180	)
Payment of cash dividends and related amounts		(239,731	)		—			—			—			(239,731	)
Equity settlements with employees, net of taxes paid		(5,928	)		—			—			—			(5,928	)
Tax benefit of stock options		5,390			—			—			—			5,390
Changes in intercompany note balances, net		537,052			(537,638	)		586			—			—
Net cash provided by (used in) financing activities		(41,982	)		(539,300	)		586			—			(580,696	)
Net increase (decrease) in cash and cash equivalents		(195,017	)		38,597			501			—			(155,919	)
Cash and cash equivalents, beginning of year		292,637			64,404			20,954			—			377,995
Cash and cash equivalents, end of year	$	97,620		$	103,001		$	21,455		$	—		$	222,076