Guarantor subsidiaries

3 Months Ended

May 04, 2012

Guarantor subsidiaries

Guarantor subsidiaries

12.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.

	May 4, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATEDTOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents	$	1,156		$	108,118	$	23,256	$	—		$	132,530
Merchandise inventories	—			2,000,864		—		—			2,000,864
Income taxes receivable	—			5,210		—		—			5,210
Deferred income taxes	415			—		21,848		(22,263		)	—
Prepaid expenses and other current assets	579,120			4,881,080		10,058		(5,335,127		)	135,131
Total current assets	580,691			6,995,272		55,162		(5,357,390		)	2,273,735
Net property and equipment	113,770			1,764,235		167		—			1,878,172
Goodwill	4,338,589			—		—		—			4,338,589
Other intangible assets, net	1,199,700			32,166		—		—			1,231,866
Deferred income taxes	—			—		50,136		(50,136		)	—
Other assets, net	6,904,676			13,656		324,593		(7,195,079		)	47,846
Total assets	$	13,137,426		$	8,805,329	$	430,058	$	(12,602,605	)	$	9,770,208
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term obligations	$	—		$	459	$	—	$	—		$	459
Accounts payable	4,831,858			1,423,354		51,904		(5,321,192		)	985,924
Accrued expenses and other	56,163			255,641		62,480		(13,935		)	360,349
Income taxes payable	21,425			—		28,930		—			50,355
Deferred income taxes	—			36,429		—		(22,263		)	14,166
Total current liabilities	4,909,446			1,715,883		143,314		(5,357,390		)	1,411,253
Long-term obligations	3,142,575			3,431,603		—		(3,693,258		)	2,880,920
Deferred income taxes	435,666			264,002		—		(50,136		)	649,532
Other liabilities	52,663			35,310		143,454		—			231,427
Redeemable common stock	5,644			—		—		—			5,644
Shareholders’ equity:
Preferred stock	—			—		—		—			—
Common stock	290,782			23,855		100		(23,955		)	290,782
Additional paid-in capital	2,967,014			431,253		19,900		(451,153		)	2,967,014
Retained earnings	1,336,298			2,903,423		123,290		(3,026,713		)	1,336,298
Accumulated other comprehensive loss	(2,662		)	—		—		—			(2,662		)
Total shareholders’ equity	4,591,432			3,358,531		143,290		(3,501,821		)	4,591,432
Total liabilities and shareholders’ equity	$	13,137,426		$	8,805,329	$	430,058	$	(12,602,605	)	$	9,770,208

	February 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATEDTOTAL
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

	For the 13-weeks ended May 4, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	83,250		$	3,901,205		$	23,331		$	(106,581	)	$	3,901,205
Cost of goods sold	—			2,672,949			—			—			2,672,949
Gross profit	83,250			1,228,256			23,331			(106,581		)	1,228,256
Selling, general and administrative expenses	75,682			851,948			22,883			(106,581		)	843,932
Operating profit	7,568			376,308			448			—			384,324
Interest income	(9,951		)	(8,576		)	(5,002		)	23,529			—
Interest expense	51,106			9,489			8			(23,529		)	37,074
Other (income) expense	1,671			—			—			—			1,671
Income (loss) before income taxes	(35,258		)	375,395			5,442			—			345,579
Income tax expense (benefit)	(13,820		)	144,095			1,889			—			132,164
Equity in subsidiaries’ earnings, net of taxes	234,853			—			—			(234,853		)	—
Net income	$	213,415		$	231,300		$	3,553		$	(234,853	)	$	213,415
Comprehensive income	$	215,944		$	231,300		$	3,553		$	(234,853	)	$	215,944

	For the 13-weeks ended April 29, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE 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		)	21,631			—
Interest expense	74,746			12,451			6			(21,631		)	65,572
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
Comprehensive income	$	161,669		$	189,313		$	3,852		$	(193,165	)	$	161,669

	For the 13 weeks ended May 4, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	213,415		$	231,300		$	3,553		$	(234,853	)	$	213,415
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	7,520			64,685			66			—			72,271
Deferred income taxes	5,439			(5,834		)	(724		)	—			(1,119		)
Tax benefit of stock options	(18,589		)	—			—			—			(18,589		)
Loss on debt retirement, net	1,629			—			—			—			1,629
Noncash share-based compensation	4,759			—			—			—			4,759
Other noncash gains and losses	109			2,719			—			—			2,828
Equity in subsidiaries’ earnings, net	(234,853		)	—			—			234,853			—
Change in operating assets and liabilities:
Merchandise inventories	—			6,499			—			—			6,499
Prepaid expenses and other current assets	17,405			(13,025		)	990			—			5,370
Accounts payable	(6,888		)	(75,139		)	(200		)	—			(82,227		)
Accrued expenses and other liabilities	(25,442		)	(6,606		)	1,830			—			(30,218		)
Income taxes	27,042			(10,223		)	2,487			—			19,306
Other	(645		)	(569		)	(71		)	—			(1,285		)
Net cash provided by (used in) operating activities	(9,099		)	193,807			7,931			—			192,639
Cash flows from investing activities:
Purchases of property and equipment	(3,831		)	(142,020		)	(6		)	—			(145,857		)
Proceeds from sales of property and equipment	12			107			—			—			119
Net cash used in investing activities	(3,819		)	(141,913		)	(6		)	—			(145,738		)
Cash flows from financing activities:
Repayments of long-term obligations	—			(202		)	—			—			(202		)
Borrowings under revolving credit facility	584,900			—			—			—			584,900
Repayments of borrowings under revolving credit facility	(321,800		)	—			—			—			(321,800		)
Debt issue costs	(7,663		)	—			—			—			(7,663		)
Repurchase of common stock from principal shareholder	(300,000		)	—			—			—			(300,000		)
Equity transactions with employees, net of taxes paid	(14,321		)	—			—			—			(14,321		)
Tax benefit of stock options	18,589			—			—			—			18,589
Changes in intercompany note balances, net	52,525			(46,201		)	(6,324		)	—			—
Net cash provided by (used in) financing activities	12,230			(46,403		)	(6,324		)	—			(40,497		)
Net increase (decrease) in cash and cash equivalents	(688		)	5,491			1,601			—			6,404
Cash and cash equivalents, beginning of period	1,844			102,627			21,655			—			126,126
Cash and cash equivalents, end of period	$	1,156		$	108,118		$	23,256		$	—		$	132,530

	For the 13 weeks ended April 29, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
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 (used in) 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, net	2,167			—			—			—			2,167
Noncash share-based compensation	3,519			—			—			—			3,519
Other noncash 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 liabilities	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 (used in) 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 sales of property and equipment	—			367			—			—			367
Net cash used in investing activities	(9,973		)	(81,599		)	(19		)	—			(91,591		)
Cash flows from financing activities:
Repayments of long-term obligations	(26,750		)	(401		)	—			—			(27,151		)
Equity transactions with employees, net of taxes paid	(247		)	—			—			—			(247		)
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 (decrease) 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