Dollar General 2006 Annual Report Download - page 36

The following table summarizes our significant contractual obligations and commercial
commitments as of February 2, 2007 (in thousands):
Payments Due by Period
Contractual obligations Total < 1 yr 1-3 yrs 3-5 yrs > 5 yrs
Long-term debt obligations $ 214,473 $ - $ - $199,978 $ 14,495
Capital lease obligations 18,407 6,667 6,476 492 4,772
Financing obligations 37,304 1,413 2,466 2,233 31,192
Interest (a) 111,509 22,012 42,747 14,012 32,738
Self-insurance liabilities (b) 183,538 76,062 63,813 20,118 23,545
Operating leases (c) 1,489,581 304,567 460,456 309,295 415,263
Subtotal $2,054,812 $ 410,721 $575,958 $546,128 $522,005
Commitments Expiring by Period
Commercial commitments (d) Total < 1 yr 1-3 yrs 3-5 yrs > 5 yrs
Letters of credit $ 116,147 $116,147$-$-$-
Purchase obligations (e) 459,289 458,864 425 - -
Subtotal $ 575,436 $ 575,011 $ 425 $ - $ -
Total contractual obligations
and commercial
commitments $2,630,248 $ 985,732 $576,383 $546,128 $522,005
(a) Represents obligations for interest payments on long-term debt, capital lease and financing obligations and
includes projected interest on $14.5 million of variable rate long-term debt issued in 2005, based upon 2006
effective interest rates.
(b) We retain a significant portion of the risk for our workers’ compensation, employee health insurance,
general liability, property loss and automobile insurance. As these obligations do not have scheduled
maturities, these amounts represent undiscounted estimates based upon actuarial assumptions. These
amounts are reflected on an undiscounted basis in our consolidated balance sheets.
(c) Operating lease obligations are inclusive of amounts included in deferred rent and closed store obligations
in our consolidated balance sheets.
(d) Commercial commitments include advertising contracts, contractual commitments for DC improvements
and equipment purchases, information technology license and support agreements, letters of credit for
import merchandise, and other inventory purchase obligations.
(e) Purchase obligations include legally binding agreements for advertising, DC capital expenditures, software
licenses and support, and merchandise purchases excluding such purchases subject to letters of credit.
In 2006 and 2005, our South Carolina-based wholly owned captive insurance subsidiary,
Ashley River Insurance Company (“ARIC”), had cash and cash equivalents and investments
balances held pursuant to South Carolina regulatory requirements to maintain a specified
percentage of ARIC’ s liability and equity balances (primarily insurance liabilities) in the form of
certain specified types of assets and, as such, these investments are not available for general
corporate purposes. At February 2, 2007, these cash and cash equivalents balances and
investments balances were $3.2 million and $49.7 million, respectively.
In June 2006, we amended our existing revolving credit facility. The amended credit
facility has a maximum commitment of $400 million (with the ability to increase to $500 million
upon our mutual agreement with the lenders) and expires in June 2011. In addition to revolving
loans, the amended credit facility includes a $15 million swingline loan sub-limit and a $75
million letter of credit sub-facility. Outstanding swingline loans and letters of credit reduce the
borrowing capacity under the amended credit facility. In December 2006, we further amended
the revolving credit facility to lower the fixed charge coverage financial covenant for future
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