Guarantor subsidiaries (Tables)

9 Months Ended

Nov. 02, 2012

Guarantor subsidiaries

Condensed Consolidated Balance Sheets

	November 2, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES		OTHER SUBSIDIARIES		ELIMINATIONS			CONSOLIDATEDTOTAL
BALANCE SHEET:
ASSETS
Current assets:
Cash and cash equivalents	$	1,223		$	116,107	$	25,250	$	—		$	142,580
Merchandise inventories	—			2,330,436		—		—			2,330,436
Income taxes receivable	26,908			6,847		—		(20,201		)	13,554
Deferred income taxes	1,592			—		8,626		(10,218		)	—
Prepaid expenses and other current assets	701,969			5,379,125		10,035		(5,959,507		)	131,622
Total current assets	731,692			7,832,515		43,911		(5,989,926		)	2,618,192
Net property and equipment	123,523			1,923,806		105		—			2,047,434
Goodwill	4,338,589			—		—		—			4,338,589
Other intangible assets, net	1,199,700			23,707		—		—			1,223,407
Deferred income taxes	—			—		49,588		(49,588		)	—
Other assets, net	7,529,127			14,573		344,715		(7,842,360		)	46,055
Total assets	$	13,922,631		$	9,794,601	$	438,319	$	(13,881,874	)	$	10,273,677
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term obligations	$	588		$	303	$	—	$	—		$	891
Accounts payable	5,356,882			1,737,980		50,534		(5,945,669		)	1,199,727
Accrued expenses and other	52,287			285,731		68,259		(13,838		)	392,439
Income taxes payable	—			—		21,198		(20,201		)	997
Deferred income taxes	—			50,003		—		(10,218		)	39,785
Total current liabilities	5,409,757			2,074,017		139,991		(5,989,926		)	1,633,839
Long-term obligations	3,301,168			3,604,106		—		(3,881,907		)	3,023,367
Deferred income taxes	433,413			272,085		—		(49,588		)	655,910
Other liabilities	43,431			40,239		142,029		—			225,699
Shareholders’ equity:
Preferred stock	—			—		—		—			—
Common stock	287,613			23,855		100		(23,955		)	287,613
Additional paid-in capital	2,983,323			431,253		19,900		(451,153		)	2,983,323
Retained earnings	1,468,534			3,349,046		136,299		(3,485,345		)	1,468,534
Accumulated other comprehensive loss	(4,608		)	—		—		—			(4,608		)
Total shareholders’ equity	4,734,862			3,804,154		156,299		(3,960,453		)	4,734,862
Total liabilities and shareholders’ equity	$	13,922,631		$	9,794,601	$	438,319	$	(13,881,874	)	$	10,273,677

	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
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 13-weeks ended November 2, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	86,674		$	3,964,647		$	24,082		$	(110,756	)	$	3,964,647
Cost of goods sold	—			2,738,524			—			—			2,738,524
Gross profit	86,674			1,226,123			24,082			(110,756		)	1,226,123
Selling, general and administrative expenses	78,795			877,237			19,458			(110,756		)	864,734
Operating profit	7,879			348,886			4,624			—			361,389
Interest income	(10,837		)	(9,095		)	(4,836		)	24,768			—
Interest expense	41,599			10,885			10			(24,768		)	27,726
Other (income) expense	1,728			—			—			—			1,728
Income (loss) before income taxes	(24,611		)	347,096			9,450			—			331,935
Income tax expense (benefit)	(11,440		)	132,511			3,179			—			124,250
Equity in subsidiaries’ earnings, net of taxes	220,856			—			—			(220,856		)	—
Net income	$	207,685		$	214,585		$	6,271		$	(220,856	)	$	207,685
Comprehensive income	$	208,249		$	214,585		$	6,271		$	(220,856	)	$	208,249

	For the 13-weeks ended October 28, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	80,476		$	3,595,224		$	21,340		$	(101,816	)	$	3,595,224
Cost of goods sold	—			2,479,422			—			—			2,479,422
Gross profit	80,476			1,115,802			21,340			(101,816		)	1,115,802
Selling, general and administrative expenses	73,160			814,281			19,260			(101,816		)	804,885
Operating profit	7,316			301,521			2,080			—			310,917
Interest income	(11,269		)	(7,491		)	(5,146		)	23,906			—
Interest expense	54,059			8,465			14			(23,906		)	38,632
Other (income) expense	53			—			—			—			53
Income (loss) before income taxes	(35,527		)	300,547			7,212			—			272,232
Income tax expense (benefit)	(12,715		)	111,788			1,995			—			101,068
Equity in subsidiaries’ earnings, net of taxes	193,976			—			—			(193,976		)	—
Net income	$	171,164		$	188,759		$	5,217		$	(193,976	)	$	171,164
Comprehensive income	$	174,269		$	188,759		$	5,217		$	(193,976	)	$	174,269

	For the 39-weeks ended November 2, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	255,130		$	11,814,507		$	73,287		$	(328,417	)	$	11,814,507
Cost of goods sold	—			8,096,905			—			—			8,096,905
Gross profit	255,130			3,717,602			73,287			(328,417		)	3,717,602
Selling, general and administrative expenses	231,937			2,618,062			63,093			(328,417		)	2,584,675
Operating profit	23,193			1,099,540			10,194			—			1,132,927
Interest income	(31,327		)	(27,174		)	(14,676		)	73,177			—
Interest expense	143,382			30,234			27			(73,177		)	100,466
Other (income) expense	29,956			—			—			—			29,956
Income (loss) before income taxes	(118,818		)	1,096,480			24,843			—			1,002,505
Income tax expense (benefit)	(60,573		)	419,557			8,281			—			367,265
Equity in subsidiaries’ earnings, net of taxes	693,485			—			—			(693,485		)	—
Net income	$	635,240		$	676,923		$	16,562		$	(693,485	)	$	635,240
Comprehensive income	$	635,823		$	676,923		$	16,562		$	(693,485	)	$	635,823

	For the 39-weeks ended October 28, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF COMPREHENSIVE INCOME:
Net sales	$	242,397		$	10,622,115		$	62,735		$	(305,132	)	$	10,622,115
Cost of goods sold	—			7,270,574			—			—			7,270,574
Gross profit	242,397			3,351,541			62,735			(305,132		)	3,351,541
Selling, general and administrative expenses	220,361			2,394,639			59,109			(305,132		)	2,368,977
Operating profit	22,036			956,902			3,626			—			982,564
Interest income	(35,379		)	(17,587		)	(15,640		)	68,606			—
Interest expense	198,097			35,312			28			(68,606		)	164,831
Other (income) expense	60,564			—			—			—			60,564
Income (loss) before income taxes	(201,246		)	939,177			19,238			—			757,169
Income tax expense (benefit)	(73,825		)	351,175			5,644			—			282,994
Equity in subsidiaries’ earnings, net of taxes	601,596			—			—			(601,596		)	—
Net income	$	474,175		$	588,002		$	13,594		$	(601,596	)	$	474,175
Comprehensive income	$	486,594		$	588,002		$	13,594		$	(601,596	)	$	486,594

Condensed Consolidated Statements of Cash Flows

	For the 39-weeks ended November 2, 2012
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATED TOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	635,240		$	676,923		$	16,562		$	(693,485	)	$	635,240
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	22,942			199,317			139			—			222,398
Deferred income taxes	(4,648		)	15,823			13,046			—			24,221
Tax benefit of stock options	(85,335		)	—			—			—			(85,335		)
Loss on debt retirement, net	30,620			—			—			—			30,620
Noncash share-based compensation	15,357			—			—			—			15,357
Other noncash gains and losses	(593		)	10,141			—			—			9,548
Equity in subsidiaries’ earnings, net	(693,485		)	—			—			693,485			—
Change in operating assets and liabilities:
Merchandise inventories	—			(326,076		)	—			—			(326,076		)
Prepaid expenses and other current assets	24,897			(14,774		)	2,276			—			12,399
Accounts payable	15,385			117,007			(1,659		)	—			130,733
Accrued expenses and other liabilities	(39,256		)	28,738			6,184			—			(4,334		)
Income taxes	45,455			(11,860		)	(5,245		)	—			28,350
Other	(501		)	(1,663		)	(71		)	—			(2,235		)
Net cash provided by (used in) operating activities	(33,922		)	693,576			31,232			—			690,886
Cash flows from investing activities:
Purchases of property and equipment	(19,949		)	(433,660		)	(17		)	—			(453,626		)
Proceeds from sales of property and equipment	65			1,079			—			—			1,144
Net cash provided by (used in) investing activities	(19,884		)	(432,581		)	(17		)	—			(452,482		)
Cash flows from financing activities:
Issuance of long-term obligations	500,000			—			—			—			500,000
Repayments of long-term obligations	(477,521		)	(505		)	—			—			(478,026		)
Borrowings under revolving credit facility	1,703,400			—			—			—			1,703,400
Repayments of borrowings under revolving credit facility	(1,349,800		)	—			—			—			(1,349,800		)
Debt issue costs	(15,278		)	—			—			—			(15,278		)
Repurchase of common stock	(596,442		)	—			—			—			(596,442		)
Equity transactions with employees, net of taxes paid	(71,139		)	—			—			—			(71,139		)
Tax benefit of stock options	85,335			—			—			—			85,335
Changes in intercompany note balances, net	274,630			(247,010		)	(27,620		)	—			—
Net cash provided by (used in) financing activities	53,185			(247,515		)	(27,620		)	—			(221,950		)
Net increase (decrease) in cash and cash equivalents	(621		)	13,480			3,595			—			16,454
Cash and cash equivalents, beginning of period	1,844			102,627			21,655			—			126,126
Cash and cash equivalents, end of period	$	1,223		$	116,107		$	25,250		$	—		$	142,580

	For the 39-weeks ended October 28, 2011
	DOLLAR GENERAL CORPORATION			GUARANTOR SUBSIDIARIES			OTHER SUBSIDIARIES			ELIMINATIONS			CONSOLIDATEDTOTAL
STATEMENTS OF CASH FLOWS:
Cash flows from operating activities:
Net income	$	474,175		$	588,002		$	13,594		$	(601,596	)	$	474,175
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	24,008			180,666			97			—			204,771
Deferred income taxes	1,527			24,573			(2,123		)	—			23,977
Tax benefit of stock options	(16,101		)	—			—			—			(16,101		)
Loss on debt retirement, net	60,303			—			—			—			60,303
Non-cash share-based compensation	10,969			—			—			—			10,969
Other noncash gains and losses	562			31,094			—			—			31,656
Equity in subsidiaries’ earnings, net	(601,596		)	—			—			601,596			—
Change in operating assets and liabilities:
Merchandise inventories	—			(350,932		)	—			—			(350,932		)
Prepaid expenses and other current assets	(17,129		)	(13,125		)	(645		)	—			(30,899		)
Accounts payable	21,248			143,080			8			—			164,336
Accrued expenses and other liabilities	32,950			50,916			6,127			—			89,993
Income taxes	(48,077		)	(16,644		)	7,146			—			(57,575		)
Other	(2		)	(100		)	(72		)	—			(174		)
Net cash provided by (used in) operating activities	(57,163		)	637,530			24,132			—			604,499
Cash flows from investing activities:
Purchases of property and equipment	(20,956		)	(342,078		)	(65		)	—			(363,099		)
Proceeds from sale of property and equipment	16			713			—			—			729
Net cash provided by (used in) investing activities	(20,940		)	(341,365		)	(65		)	—			(362,370		)
Cash flows from financing activities:
Repayments of long-term obligations	(910,677		)	(1,031		)	—			—			(911,708		)
Borrowings under revolving credit facility	649,100			—			—			—			649,100
Repayments of borrowings under revolving credit facility	(361,300		)	—			—			—			(361,300		)
Equity transactions with employees, net of taxes paid	(13,188		)	—			—			—			(13,188		)
Tax benefit of stock options	16,101			—			—			—			16,101
Changes in intercompany note balances, net	587,289			(565,513		)	(21,776		)	—			—
Net cash provided by (used in) financing activities	(32,675		)	(566,544		)	(21,776		)	—			(620,995		)
Net increase (decrease) in cash and cash equivalents	(110,778		)	(270,379		)	2,291			—			(378,866		)
Cash and cash equivalents, beginning of period	111,545			364,404			21,497			—			497,446
Cash and cash equivalents, end of period	$	767		$	94,025		$	23,788		$	—		$	118,580