Guarantor subsidiaries (Tables)

12 Months Ended

Feb. 01, 2013

Guarantor subsidiaries

Condensed Consolidated Balance Sheets

	February 1, 2013
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATED TOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents	$	1,759		$	117,186	$	21,864	$	—		$	140,809
Merchandise inventories		—			2,397,175		—		—			2,397,175
Income taxes receivable		—			—		—		—			—
Deferred income taxes		4,616			—		24,016		(28,632	)		—
Prepaid expenses and other current assets		654,787			5,773,989		5,711		(6,295,358	)		139,129
Total current assets		661,162			8,288,350		51,591		(6,323,990	)		2,677,113
Net property and equipment		126,191			1,962,375		99		—			2,088,665
Goodwill		4,338,589			—		—		—			4,338,589
Other intangible assets, net		1,199,700			19,843		—		—			1,219,543
Deferred income taxes		—			—		49,097		(49,097	)		—
Other assets, net		8,075,560			15,103		361,999		(8,408,890	)		43,772
Total assets	$	14,401,202		$	10,285,671	$	462,786	$	(14,781,977	)	$	10,367,682
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations	$	600		$	292	$	—	$	—		$	892
Accounts payable		5,780,924			1,716,370		51,148		(6,286,835	)		1,261,607
Accrued expenses and other		44,621			252,310		69,030		(8,523	)		357,438
Income taxes payable		51,697			5,411		38,279		—			95,387
Deferred income taxes		—			51,855		—		(28,632	)		23,223
Total current liabilities		5,877,842			2,026,238		158,457		(6,323,990	)		1,738,547
Long-term obligations		3,066,212			3,687,969		—		(3,982,845	)		2,771,336
Deferred income taxes		429,253			266,914		—		(49,097	)		647,070
Other liabilities		42,565			42,349		140,485		—			225,399
Shareholders' equity:
Preferred stock		—			—		—		—			—
Common stock		286,185			23,855		100		(23,955	)		286,185
Additional paid-in capital		2,991,351			560,779		19,900		(580,679	)		2,991,351
Retained earnings		1,710,732			3,677,567		143,844		(3,821,411	)		1,710,732
Accumulated other comprehensive loss		(2,938	)		—		—		—			(2,938	)
Total shareholders' equity		4,985,330			4,262,201		163,844		(4,426,045	)		4,985,330
Total liabilities and shareholders' equity	$	14,401,202		$	10,285,671	$	462,786	$	(14,781,977	)	$	10,367,682

	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
Shareholders' equity:
Preferred stock		—			—		—		—			—
Common stock		295,828			23,855		100		(23,955	)		295,828
Additional paid-in capital		2,967,027			431,253		19,900		(451,153	)		2,967,027
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		4,674,582			3,127,231		139,737		(3,266,968	)		4,674,582
Total liabilities and shareholders' equity	$	12,790,403		$	8,528,182	$	422,646	$	(12,052,711	)	$	9,688,520

Condensed Consolidated Statements of Comprehensive Income

	For the year ended February 1, 2013
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF INCOME:
Net sales	$	347,089		$	16,022,128		$	98,900		$	(445,989	)	$	16,022,128
Cost of goods sold		—			10,936,727			—			—			10,936,727
Gross profit		347,089			5,085,401			98,900			(445,989	)		5,085,401
Selling, general and administrative expenses		315,536			3,478,458			82,120			(445,989	)		3,430,125
Operating profit		31,553			1,606,943			16,780			—			1,655,276
Interest income		(41,379	)		(42,668	)		(18,703	)		102,750			—
Interest expense		190,171			40,469			36			(102,750	)		127,926
Other (income) expense		29,956			—			—			—			29,956
Income (loss) before income taxes		(147,195	)		1,609,142			35,447			—			1,497,394
Income tax expense (benefit)		(70,306	)		603,698			11,340			—			544,732
Equity in subsidiaries' earnings, net of taxes		1,029,551			—			—			(1,029,551	)		—
Net income	$	952,662		$	1,005,444		$	24,107		$	(1,029,551	)	$	952,662
Comprehensive income	$	954,915		$	1,005,444		$	24,107		$	(1,029,551	)	$	954,915

	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	)		82,404			—
Interest expense		246,905			40,362			37			(82,404	)		204,900
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
Comprehensive income	$	781,790		$	901,032		$	18,019		$	(919,051	)	$	781,790

	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	)		71,688			—
Interest expense		300,934			44,723			23			(71,688	)		273,992
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
Comprehensive income	$	641,728		$	742,631		$	25,925		$	(768,556	)	$	641,728

Condensed Consolidated Statements of Cash Flows

	For the year ended February 1, 2013
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	952,662		$	1,005,444		$	24,107		$	(1,029,551	)	$	952,662
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		31,385			271,367			159			—			302,911
Deferred income taxes		(13,256	)		12,504			(1,853	)		—			(2,605	)
Tax benefit of stock options		(87,752	)		—			—			—			(87,752	)
Loss on debt retirement, net		30,620			—			—			—			30,620
Noncash share-based compensation		21,664			—			—			—			21,664
Other noncash gains and losses		(2,354	)		9,128			—			—			6,774
Equity in subsidiaries' earnings, net		(1,029,551	)		—			—			1,029,551			—
Change in operating assets and liabilities:
Merchandise inventories		—			(391,409	)		—			—			(391,409	)
Prepaid expenses and other current assets		22,814			(18,110	)		849			—			5,553
Accounts payable		46,388			148,871			(1,224	)		—			194,035
Accrued expenses and other liabilities		(39,728	)		(2,424	)		5,411			—			(36,741	)
Income taxes		126,477			398			11,836			—			138,711
Other		(501	)		(2,460	)		(110	)		—			(3,071	)
Net cash provided by (used in) operating activities		58,868			1,033,309			39,175			—			1,131,352
Cash flows from investing activities:
Purchases of property and equipment		(29,094	)		(542,471	)		(31	)		—			(571,596	)
Proceeds from sales of property and equipment		167			1,593			—			—			1,760
Net cash provided by (used in) investing activities		(28,927	)		(540,878	)		(31	)		—			(569,836	)
Cash flows from financing activities:
Issuance of long-term obligations		500,000			—			—			—			500,000
Repayments of long-term obligations		(477,665	)		(590	)		—			—			(478,255	)
Borrowings under revolving credit facility		2,286,700			—			—			—			2,286,700
Repayments of borrowings under revolving credit facility		(2,184,900	)		—			—			—			(2,184,900	)
Debt issuance costs		(15,278	)		—			—			—			(15,278	)
Repurchase of common stock		(671,459	)		—			—			—			(671,459	)
Other equity transactions, net of employee taxes paid		(71,393	)		—			—			—			(71,393	)
Tax benefit of stock options		87,752			—			—			—			87,752
Changes in intercompany note balances, net		516,217			(477,282	)		(38,935	)		—			—
Net cash provided by (used in) financing activities		(30,026	)		(477,872	)		(38,935	)		—			(546,833	)
Net increase (decrease) in cash and cash equivalents		(85	)		14,559			209			—			14,683
Cash and cash equivalents, beginning of year		1,844			102,627			21,655			—			126,126
Cash and cash equivalents, end of year	$	1,759		$	117,186		$	21,864		$	—		$	140,809

	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 from 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
Other noncash gains and losses		653			53,537			—			—			54,190
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 provided by (used in) investing activities		(30,370	)		(483,395	)		(70	)		—			(513,835	)
Cash flows from financing activities:
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		(186,597	)		—			—			—			(186,597	)
Other equity transactions, net of employee taxes paid		(27,219	)		—			—			—			(27,219	)
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 from 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
Other noncash gains and losses		1,395			12,154			—			—			13,549
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 provided by (used in) investing activities		(22,830	)		(395,874	)		(243	)		—			(418,947	)
Cash flows from financing activities:
Repayments of long-term obligations		(129,217	)		(1,963	)		—			—			(131,180	)
Other equity transactions, net of employee taxes paid		(13,092	)		—			—			—			(13,092	)
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