XML 22 R14.htm IDEA: XBRL DOCUMENT

Guarantor subsidiaries

3 Months Ended

Apr. 29, 2011

Guarantor subsidiaries

Guarantor subsidiaries

11. Guarantor subsidiaries

Certain of the Company’s subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed on a joint and several basis the Company’s obligations under certain outstanding debt obligations. Each of the Guarantors is a direct or indirect wholly-owned subsidiary of the Company. The following consolidating schedules present condensed financial information on a combined basis, in thousands.

		April 29, 2011
		DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents		$	128,334		$	445,583		$	28,546		$	—		$	602,463
Merchandise inventories		—			1,767,121			—			—			1,767,121
Deferred income taxes		7,021			—			10,639			(17,660		)	—
Prepaid expenses and other current assets		848,325			3,931,907			9,485			(4,652,404		)	137,313
Total current assets		983,680			6,144,611			48,670			(4,670,064		)	2,506,897
Net property and equipment		109,075			1,453,250			271			—			1,562,596
Goodwill		4,338,589			—			—			—			4,338,589
Intangible assets, net		1,199,200			52,089			—			—			1,251,289
Deferred income taxes		—			—			48,112			(48,112		)	—
Other assets, net		5,625,021			12,530			298,696			(5,880,754		)	55,493

Total assets		$	12,255,565		$	7,662,480		$	395,749		$	(10,598,930	)	$	9,714,864

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term obligations		$	—		$	1,039		$	—		$	—		$	1,039
Accounts payable		3,921,932			1,600,130			50,208			(4,638,560		)	933,710
Accrued expenses and other		101,874			230,550			61,841			(13,843		)	380,422
Income taxes payable		10,919			776			20,522			—			32,217
Deferred income taxes		—			57,502			—			(17,660		)	39,842
Total current liabilities		4,034,725			1,889,997			132,571			(4,670,063		)	1,387,230
Long-term obligations		3,505,049			3,097,221			—			(3,339,673		)	3,262,597
Deferred income taxes		422,838			231,345			—			(48,112		)	606,071
Other liabilities		64,030			28,405			137,608			—			230,043

Redeemable common stock		9,267			—			—			—			9,267

Shareholders’ equity:
Preferred stock		—			—			—			—			—
Common stock		298,844			23,855			100			(23,955		)	298,844
Additional paid-in capital		2,948,506			431,253			19,900			(451,153		)	2,948,506
Retained earnings		987,901			1,960,404			105,570			(2,065,974		)	987,901
Accumulated other comprehensive loss		(15,595		)	—			—			—			(15,595		)
Total shareholders’ equity		4,219,656			2,415,512			125,570			(2,541,082		)	4,219,656

Total liabilities and shareholders’ equity		$	12,255,565		$	7,662,480		$	395,749		$	(10,598,930	)	$	9,714,864

		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
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

		For the 13-weeks ended April 29, 2011
		DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF INCOME:
Net sales		$	87,517		$	3,451,697		$	18,814		$	(106,331	)	$	3,451,697
Cost of goods sold		—			2,364,300			—			—			2,364,300
Gross profit		87,517			1,087,397			18,814			(106,331		)	1,087,397
Selling, general and administrative expenses		79,561			774,568			17,981			(106,331		)	765,779
Operating profit		7,956			312,829			833			—			321,618
Interest income		(12,422		)	(3,981		)	(5,228		)	21,612			(19		)
Interest expense		74,746			12,451			6			(21,612		)	65,591
Other (income) expense		2,272			—			—			—			2,272
Income (loss) before income taxes		(56,640		)	304,359			6,055			—			253,774
Income tax expense (benefit)		(20,444		)	115,046			2,203			—			96,805
Equity in subsidiaries’ earnings, net of taxes		193,165			—			—			(193,165		)	—
Net income		$	156,969		$	189,313		$	3,852		$	(193,165	)	$	156,969

		For the 13-weeks ended April 30, 2010
		DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF INCOME:
Net sales		$	87,464		$	3,111,314		$	19,648		$	(107,112	)	$	3,111,314
Cost of goods sold		—			2,111,558			—			—			2,111,558
Gross profit		87,464			999,756			19,648			(107,112		)	999,756
Selling, general and administrative expenses		79,619			721,863			14,663			(107,112		)	709,033
Operating profit		7,845			277,893			4,985			—			290,723
Interest income		(11,017		)	(2,710		)	(4,953		)	18,674			(6		)
Interest expense		79,457			11,230			5			(18,674		)	72,018
Other (income) expense		145			—			—			—			145
Income (loss) before income taxes		(60,740		)	269,373			9,933			—			218,566
Income tax expense (benefit)		(22,803		)	101,910			3,463			—			82,570
Equity in subsidiaries’ earnings, net of taxes		173,933			—			—			(173,933		)	—
Net income		$	135,996		$	167,463		$	6,470		$	(173,933	)	$	135,996

		For the 13 weeks ended April 29, 2011
		DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income		$	156,969		$	189,313		$	3,852		$	(193,165	)	$	156,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,162			59,289			35			—			67,486
Deferred income taxes		3,719			7,910			(4,236		)	—			7,393
Tax benefit of stock options		(434		)	—			—			—			(434		)
Loss on debt retirement		2,167			—			—			—			2,167
Non-cash share-based compensation		3,519			—			—			—			3,519
Other non-cash gains and losses		251			4,323			—			—			4,574
Equity in subsidiaries’ earnings, net		(193,165		)	—			—			193,165			—
Change in operating assets and liabilities:
Merchandise inventories		—			(5,275		)	—			—			(5,275		)
Prepaid expenses and other current assets		(16,331		)	(16,741		)	703			—			(32,369		)
Accounts payable		14,019			(39,326		)	(615		)	—			(25,922		)
Accrued expenses and other		31,836			5,680			1,294			—			38,810
Income taxes		12,960			(12,470		)	6,181			—			6,671
Other		(328		)	308			3			—			(17		)
Net cash provided by operating activities		23,344			193,011			7,217			—			223,572
Cash flows from investing activities:
Purchases of property and equipment		(9,973		)	(81,966		)	(19		)	—			(91,958		)
Proceeds from sale of property and equipment		—			367			—			—			367
Net cash used in investing activities		(9,973		)	(81,599		)	(19		)	—			(91,591		)
Cash flows from financing activities:
Issuance of common stock		165			—			—			—			165
Repayments of long-term obligations		(26,750		)	(401		)	—			—			(27,151		)
Repurchases of common stock and settlement of equity awards, net of employee taxes paid		(412		)	—			—			—			(412		)
Tax benefit of stock options		434			—			—			—			434
Changes in intercompany note balances, net		29,981			(29,832		)	(149		)	—			—
Net cash provided by (used in) financing activities		3,418			(30,233		)	(149		)	—			(26,964		)
Net increase in cash and cash equivalents		16,789			81,179			7,049			—			105,017
Cash and cash equivalents, beginning of period		111,545			364,404			21,497			—			497,446
Cash and cash equivalents, end of period		$	128,334		$	445,583		$	28,546		$	—		$	602,463

		For the 13 weeks ended April 30, 2010
		DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income		$	135,996		$	167,463		$	6,470		$	(173,933	)	$	135,996
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,518			54,724			10			—			63,252
Deferred income taxes		9,157			3,812			(2,940		)	—			10,029
Tax benefit of stock options		(4,806		)	—			—			—			(4,806		)
Non-cash share-based compensation		4,979			—			—			—			4,979
Other non-cash gains and losses		346			1,287			—			—			1,633
Equity in subsidiaries’ earnings, net		(173,933		)	—			—			173,933			—
Change in operating assets and liabilities:
Merchandise inventories		—			(85,176		)	—			—			(85,176		)
Prepaid expenses and other current assets		(1,202		)	(12,382		)	81			—			(13,503		)
Accounts payable		(16,314		)	(20,634		)	(6		)	—			(36,954		)
Accrued expenses and other		5,806			(29,844		)	(2,684		)	—			(26,722		)
Income taxes		34,982			1,879			5,649			—			42,510
Other		1			(28		)	1			—			(26		)
Net cash provided by operating activities		3,530			81,101			6,581			—			91,212
Cash flows from investing activities:
Purchases of property and equipment		(6,086		)	(84,899		)	(13		)	—			(90,998		)
Proceeds from sale of property and equipment		—			258			—			—			258
Net cash used in investing activities		(6,086		)	(84,641		)	(13		)	—			(90,740		)
Cash flows from financing activities:
Issuance of common stock		285			—			—			—			285
Repayments of long-term obligations		—			(463		)	—			—			(463		)
Repurchases of common stock and settlement of equity awards, net of employee taxes paid		(4,467		)	—			—			—			(4,467		)
Tax benefit of stock options		4,806			—			—			—			4,806
Changes in intercompany note balances, net		(2,090		)	4,821			(2,731		)	—			—
Net cash provided by (used in) financing activities		(1,466		)	4,358			(2,731		)	—			161
Net increase (decrease) in cash and cash equivalents		(4,022		)	818			3,837			—			633
Cash and cash equivalents, beginning of period		97,620			103,001			21,455			—			222,076
Cash and cash equivalents, end of period		$	93,598		$	103,819		$	25,292		$	—		$	222,709

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

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