Dollar General 2006 Annual Report Download - page 20

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acquisition of our company. These provisions would apply even if an acquisition or other
significant corporate transaction was considered beneficial by some of our shareholders. If a
change-in-control or change in management is delayed or prevented by these provisions, the
market price of our securities could decline.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of March 2, 2007, we operated 8,260 retail stores located in 35 states as follows:
State Number of Stores State Number of Stores
Alabama 443 Nebraska 90
Arizona 60 New Jersey 24
Arkansas 222 New Mexico 41
Colorado 8 New York 231
Delaware 25 North Carolina 456
Florida 429 Ohio 452
Georgia 471 Oklahoma 281
Illinois 310 Pennsylvania 410
Indiana 290 South Carolina 306
Iowa 178 South Dakota 5
Kansas 148 Tennessee 409
Kentucky 291 Texas 958
Louisiana 327 Utah 4
Maryland 63 Vermont 1
Michigan 250 Virginia 252
Minnesota 13 West Virginia 151
Mississippi 254 Wisconsin 99
Missouri 308
Most of our stores are located in leased premises. Individual store leases vary as to their
terms, rental provisions and expiration dates. The majority of our leases are relatively low-cost,
short-term leases (usually with initial or primary terms of three to five years) often with multiple
renewal options. We also have stores subject to build-to-suit arrangements with landlords, which
typically carry a primary lease term of between 7 and 10 years with multiple renewal options. In
recent years, an increasing percentage of our new stores have been subject to build-to-suit
arrangements. In 2007, we expect approximately 70% of our new stores to be build-to-suit
arrangements.
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