Guarantor subsidiaries (Tables)

6 Months Ended

Aug. 03, 2012

Guarantor subsidiaries

Condensed Consolidated Balance Sheets

The following consolidating schedules present condensed financial information on a combined basis, in thousands.

	August 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATEDTOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents	$	3,443		$	109,458	$	21,256	$	—		$	134,157
Merchandise inventories	—			2,147,837		—		—			2,147,837
Income taxes receivable	109,111			12,420		—		(32,058		)	89,473
Deferred income taxes	1,008			—		22,511		(23,519		)	—
Prepaid expenses and other current assets	619,332			5,156,562		5,711		(5,638,628		)	142,977
Total current assets	732,894			7,426,277		49,478		(5,694,205		)	2,514,444
Net property and equipment	117,075			1,854,990		140		—			1,972,205
Goodwill	4,338,589			—		—		—			4,338,589
Other intangible assets, net	1,199,700			27,799		—		—			1,227,499
Deferred income taxes	—			—		50,374		(50,374		)	—
Other assets, net	7,218,130			15,103		343,380		(7,525,876		)	50,737
Total assets	$	13,606,388		$	9,324,169	$	443,372	$	(13,270,455	)	$	10,103,474
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term obligations	$	—		$	344	$	—	$	—		$	344
Accounts payable	5,106,274			1,615,197		51,983		(5,629,597		)	1,143,857
Accrued expenses and other	36,861			273,982		64,458		(9,030		)	366,271
Income taxes payable	—			—		32,723		(32,058		)	665
Deferred income taxes	—			39,065		—		(23,519		)	15,546
Total current liabilities	5,143,135			1,928,588		149,164		(5,694,204		)	1,526,683
Long-term obligations	3,164,978			3,508,553		—		(3,786,280		)	2,887,251
Deferred income taxes	441,965			259,930		—		(50,374		)	651,521
Other liabilities	40,299			37,529		144,180		—			222,008
Redeemable common stock	5,601			—		—		—			5,601
Shareholders’ equity:
Preferred stock	—			—		—		—			—
Common stock	291,983			23,855		100		(23,955		)	291,983
Additional paid-in capital	2,973,160			431,253		19,900		(451,153		)	2,973,160
Retained earnings	1,550,438			3,134,461		130,028		(3,264,489		)	1,550,438
Accumulated other comprehensive loss	(5,171		)	—		—		—			(5,171		)
Total shareholders’ equity	4,810,410			3,589,569		150,028		(3,739,597		)	4,810,410
Total liabilities and shareholders’ equity	$	13,606,388		$	9,324,169	$	443,372	$	(13,270,455	)	$	10,103,474

	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

Condensed Consolidated Statements of Comprehensive Income

	For the 13-weeks ended August 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	85,206		$	3,948,655		$	25,874		$	(111,080	)	$	3,948,655
Cost of goods sold	—			2,685,432			—			—			2,685,432
Gross profit	85,206			1,263,223			25,874			(111,080		)	1,263,223
Selling, general and administrative expenses	77,460			888,877			20,752			(111,080		)	876,009
Operating profit	7,746			374,346			5,122			—			387,214
Interest income	(10,539		)	(9,503		)	(4,838		)	24,880			—
Interest expense	50,677			9,860			9			(24,880		)	35,666
Other (income) expense	26,557			—			—			—			26,557
Income (loss) before income taxes	(58,949		)	373,989			9,951			—			324,991
Income tax expense (benefit)	(35,313		)	142,951			3,213			—			110,851
Equity in subsidiaries’ earnings, net of taxes	237,776			—			—			(237,776		)	—
Net income	$	214,140		$	231,038		$	6,738		$	(237,776	)	$	214,140
Comprehensive income	$	211,630		$	231,038		$	6,738		$	(237,776	)	$	211,630

	For the 13-weeks ended July 29, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	74,404		$	3,575,194		$	22,581		$	(96,985	)	$	3,575,194
Cost of goods sold	—			2,426,852			—			—			2,426,852
Gross profit	74,404			1,148,342			22,581			(96,985		)	1,148,342
Selling, general and administrative expenses	67,640			805,790			21,868			(96,985		)	798,313
Operating profit	6,764			342,552			713			—			350,029
Interest income	(11,688		)	(6,115		)	(5,266		)	23,069			—
Interest expense	69,292			14,396			8			(23,069		)	60,627
Other (income) expense	58,239			—			—			—			58,239
Income (loss) before income taxes	(109,079		)	334,271			5,971			—			231,163
Income tax expense (benefit)	(40,666		)	124,341			1,446			—			85,121
Equity in subsidiaries’ earnings, net of taxes	214,455			—			—			(214,455		)	—
Net income	$	146,042		$	209,930		$	4,525		$	(214,455	)	$	146,042
Comprehensive income	$	150,656		$	209,930		$	4,525		$	(214,455	)	$	150,656

	For the 26-weeks ended August 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	168,456		$	7,849,860		$	49,205		$	(217,661	)	$	7,849,860
Cost of goods sold	—			5,358,381			—			—			5,358,381
Gross profit	168,456			2,491,479			49,205			(217,661		)	2,491,479
Selling, general and administrative expenses	153,142			1,740,825			43,635			(217,661		)	1,719,941
Operating profit	15,314			750,654			5,570			—			771,538
Interest income	(20,490		)	(18,079		)	(9,840		)	48,409			—
Interest expense	101,783			19,349			17			(48,409		)	72,740
Other (income) expense	28,228			—			—			—			28,228
Income (loss) before income taxes	(94,207		)	749,384			15,393			—			670,570
Income tax expense (benefit)	(49,133		)	287,046			5,102			—			243,015
Equity in subsidiaries’ earnings, net of taxes	472,629			—			—			(472,629		)	—
Net income	$	427,555		$	462,338		$	10,291		$	(472,629	)	$	427,555
Comprehensive income	$	427,574		$	462,338		$	10,291		$	(472,629	)	$	427,574

	For the 26-weeks ended July 29, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	161,921		$	7,026,891		$	41,395		$	(203,316	)	$	7,026,891
Cost of goods sold	—			4,791,152			—			—			4,791,152
Gross profit	161,921			2,235,739			41,395			(203,316		)	2,235,739
Selling, general and administrative expenses	147,201			1,580,358			39,849			(203,316		)	1,564,092
Operating profit	14,720			655,381			1,546			—			671,647
Interest income	(24,110		)	(10,096		)	(10,494		)	44,700			—
Interest expense	144,038			26,847			14			(44,700		)	126,199
Other (income) expense	60,511			—			—			—			60,511
Income (loss) before income taxes	(165,719		)	638,630			12,026			—			484,937
Income tax expense (benefit)	(61,110		)	239,387			3,649			—			181,926
Equity in subsidiaries’ earnings, net of taxes	407,620			—			—			(407,620		)	—
Net income	$	303,011		$	399,243		$	8,377		$	(407,620	)	$	303,011
Comprehensive income	$	312,325		$	399,243		$	8,377		$	(407,620	)	$	312,325

Condensed Consolidated Statements of Cash Flows

	For the 26 weeks ended August 3, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	427,555		$	462,338		$	10,291		$	(472,629	)	$	427,555
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	14,934			131,220			106			—			146,260
Deferred income taxes	8,051			(7,270		)	(1,625		)	—			(844		)
Tax benefit of stock options	(59,235		)	—			—			—			(59,235		)
Loss on debt retirement, net	30,620			—			—			—			30,620
Noncash share-based compensation	10,224			—			—			—			10,224
Other noncash gains and losses	(2,309		)	5,641			—			—			3,332
Equity in subsidiaries’ earnings, net	(472,629		)	—			—			472,629			—
Change in operating assets and liabilities:
Merchandise inventories	—			(139,998		)	—			—			(139,998		)
Prepaid expenses and other current assets	18,046			(20,347		)	454			—			(1,847		)
Accounts payable	(4,635		)	73,485			(335		)	—			68,515
Accrued expenses and other liabilities	(53,932		)	14,122			4,534			—			(35,276		)
Income taxes	(62,848		)	(17,433		)	6,280			—			(74,001		)
Other	(502		)	(1,240		)	(71		)	—			(1,813		)
Net cash provided by (used in) operating activities	(146,660		)	500,518			19,634			—			373,492
Cash flows from investing activities:
Purchases of property and equipment	(12,198		)	(291,771		)	(19		)	—			(303,988		)
Proceeds from sales of property and equipment	41			385			—			—			426
Net cash provided by (used in) investing activities	(12,157		)	(291,386		)	(19		)	—			(303,562		)
Cash flows from financing activities:
Issuance of long-term obligations	500,000			—			—			—			500,000
Repayments of long-term obligations	(477,459		)	(387		)	—			—			(477,846		)
Borrowings under revolving credit facility	1,035,400			—			—			—			1,035,400
Repayments of borrowings under revolving credit facility	(815,200		)	—			—			—			(815,200		)
Debt issue costs	(15,067		)	—			—			—			(15,067		)
Repurchase of common stock from principal shareholder	(300,000		)	—			—			—			(300,000		)
Equity transactions with employees, net of taxes paid	(48,421		)	—			—			—			(48,421		)
Tax benefit of stock options	59,235			—			—			—			59,235
Changes in intercompany note balances, net	221,928			(201,914		)	(20,014		)	—			—
Net cash provided by (used in) financing activities	160,416			(202,301		)	(20,014		)	—			(61,899		)
Net increase (decrease) in cash and cash equivalents	1,599			6,831			(399		)	—			8,031
Cash and cash equivalents, beginning of period	1,844			102,627			21,655			—			126,126
Cash and cash equivalents, end of period	$	3,443		$	109,458		$	21,256		$	—		$	134,157

	For the 26 weeks ended July 29, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	303,011		$	399,243		$	8,377		$	(407,620	)	$	303,011
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	16,238			119,568			65			—			135,871
Deferred income taxes	5,478			21,652			(8,994		)	—			18,136
Tax benefit of stock options	(450		)	—			—			—			(450		)
Loss on debt retirement, net	60,303			—			—			—			60,303
Non-cash share-based compensation	6,798			—			—			—			6,798
Other noncash gains and losses	452			17,257			—			—			17,709
Equity in subsidiaries’ earnings, net	(407,620		)	—			—			407,620			—
Change in operating assets and liabilities:
Merchandise inventories	—			(222,669		)	—			—			(222,669		)
Prepaid expenses and other current assets	(14,841		)	(22,654		)	359			—			(37,136		)
Accounts payable	8,232			158,565			(107		)	—			166,690
Accrued expenses and other	(13,540		)	27,439			4,500			—			18,399
Income taxes	(62,412		)	(17,946		)	12,203			—			(68,155		)
Other	1,355			(1,425		)	2			—			(68		)
Net cash provided by (used in) operating activities	(96,996		)	479,030			16,405			—			398,439
Cash flows from investing activities:
Purchases of property and equipment	(14,330		)	(203,762		)	(31		)	—			(218,123		)
Proceeds from sale of property and equipment	12			461			—			—			473
Net cash provided by (used in) investing activities	(14,318		)	(203,301		)	(31		)	—			(217,650		)
Cash flows from financing activities:
Repayments of long-term obligations	(910,677		)	(684		)	—			—			(911,361		)
Borrowings under revolving credit facility	371,600			—			—			—			371,600
Repayments of borrowings under revolving credit facility	(25,600		)	—			—			—			(25,600		)
Equity transactions with employees, net of taxes paid	(274		)	—			—			—			(274		)
Tax benefit of stock options	450			—			—			—			450
Changes in intercompany note balances, net	619,704			(602,836		)	(16,868		)	—			—
Net cash provided by (used in) financing activities	55,203			(603,520		)	(16,868		)	—			(565,185		)
Net increase (decrease) in cash and cash equivalents	(56,111		)	(327,791		)	(494		)	—			(384,396		)
Cash and cash equivalents, beginning of period	111,545			364,404			21,497			—			497,446
Cash and cash equivalents, end of period	$	55,434		$	36,613		$	21,003		$	—		$	113,050