Dollar General 2005 Annual Report Download - page 51

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Current and long-term obligations
Current and long-term obligations consist of the following:
February 3, January 28,
(In thousands) 2006 2005
8 5/8% Notes due June 15, 2010,
net of discount of $189 and
$232 at February 3, 2006 and
January 28, 2005, respectively $ 199,789 $ 199,768
Tax increment financing due
February 1, 2035 14,495 –
Capital lease obligations (see Note 7) 22,028 28,178
Financing obligations (see Note 7) 42,435 43,376
278,747 271,322
Less: current portion (8,785) (12,860)
Long-term portion $ 269,962 $ 258,462
The Company’s existing revolving credit facility (the
“Credit Facility”) has a current maximum commitment of
$250 million and expires in June 2009. The Credit Facility
contains provisions that would allow the maximum com-
mitment to be increased to up to $400 million upon mutu-
al agreement of the Company and its lenders.The Credit
Facility is unsecured.The Company pays interest on funds
borrowed under the Credit Facility at rates that are subject
to change based upon the ratio of the Company’s debt to
EBITDA (as defined in the Credit Facility). The Company
has two interest rate options, base rate (which is usually
equal to prime rate) or LIBOR. Under the Credit Facility, the
facility fees can range from 12.5 to 37.5 basis points; the
all-in drawn margin under the LIBOR option can range
from LIBOR plus 87.5 to 212.5 basis points; and the all-in
drawn margin under the base rate option can range from
the base rate plus 12.5 to 62.5 basis points. During 2005
and 2004, the Company had peak borrowings of $100.3
million and $73.1 million, respectively, under the Credit
Facility. The Credit Facility contains financial covenants,
which include limits on certain debt to cash flow ratios, a
fixed charge coverage test, and minimum allowable con-
solidated net worth ($1.56 billion at February 3, 2006). As
of February 3, 2006, the Company was in compliance with
all of these covenants. As of February 3, 2006, the
Company had no outstanding borrowings or standby
letters of credit outstanding under the Credit Facility.
In July 2005, as an inducement for the Company to
select Marion, Indiana as the site for construction of a new
DC, the Economic Development Board of Marion approved
a tax increment financing in the amount of $14.5 million.
The principal amounts on this financing are due to be
repaid during fiscal years 2015 to 2035. Pursuant to this
financing, proceeds from the issuance of certain revenue
bonds were loaned to the Company in connection with
the construction of this DC. The variable interest rate on
this loan is based on the weekly remarketing of the bonds,
which are supported by a bank letter of credit, and ranged
from 3.52% to 4.60% in 2005.
At February 3, 2006 and January 28, 2005, the
Company had commercial letter of credit facilities totaling
$195.0 million and $215.0, respectively, of which $85.1
million and $98.8 million, respectively, were outstanding
for the funding of imported merchandise purchases.
In 2000, the Company issued $200 million principal
amount of 8 5/8% Notes due June 2010 (the “Notes”).
The Notes require semi-annual interest payments in June
and December of each year through June 15, 2010, at
which time the entire balance becomes due and payable.
The Notes contain certain restrictive covenants. At
January 28, 2005, the Company was in compliance with
all such covenants.
6. Earnings per share
The amounts reflected below are in thousands except
per share data.
2005
Weighted
Net Average Per Share
Income Shares Amount
Basic earnings per share $350,155 321,835 $ 1.09
Effect of dilutive stock
options, restricted stock
and restricted stock units 2,298
Diluted earnings per share $350,155 324,133 $ 1.08
2004
Weighted
Net Average Per Share
Income Shares Amount
Basic earnings per share $ 344,190 329,376 $ 1.04
Effect of dilutive stock
options, restricted stock
and restricted stock units 2,692
Diluted earnings per share $ 344,190 332,068 $ 1.04
2003
Weighted
Net Average Per Share
Income Shares Amount
Basic earnings per share $ 299,002 334,697 $ 0.89
Effect of dilutive stock
options, restricted stock
and restricted stock units 2,939
Diluted earnings per share $ 299,002 337,636 $ 0.89