Dollar General 2007 Annual Report Download - page 133

131
March 15,
2005
September 1,
2005
January 24,
2006
March 16,
2006
March 23,
2007
July 7,
2007
Expected dividend yield .85% .85% 1.0% .82% .91% 0%
Expected stock price volatility 27.4% 25.9% 24.7% 28.7% 18.5% 42.3%
Risk-free interest rate 4.25% 3.71% 4.31% 4.7% 4.5% 4.9%
Expected life of options (years) 5.0 5.0 4.5 5.7 5.7 7.5
Exercise price $22.35 $18.51 $16.94 $17.54 $21.25 $5.00
Stock price on date of grant $22.35 $18.51 $16.94 $17.54 $21.25 $5.00
For more information regarding the assumptions used in the valuation of these awards, see Note 9 of the annual consolidated financial
statements included in this document. As a result of the Merger, all options outstanding immediately before the Merger vested and,
therefore, all compensation expense associated with those awards was recognized in fiscal 2007 in accordance with SFAS 123R. Mr. Tehle
and Ms. Guion had 63,000 and 50,300 options, respectively, that were forfeited as a result of the Merger. There were no forfeitures of
options held by NEOs in fiscal 2006.
(6) Represents amounts earned pursuant to our Teamshare bonus program for fiscal 2007. See the discussion of the “Short-Term Incentive
Plan”, “Compensation of Mr. Dreiling” and “Compensation of Mr. Perdue” in “Compensation Discussion and Analysis” above. Messrs.
Beré and Buley and Ms. Guion deferred 5%, 20% and 5%, respectively of their fiscal 2007 bonus payments under the CDP in fiscal 2008.
No amounts were earned under our Teamshare bonus program for fiscal 2006 because we did not meet the financial performance level
required for a payout.
(7) Represents the incremental cost of providing certain perquisites, including $61,414 for amounts associated with relocation and $727 for an
automobile allowance. The aggregate incremental cost related to Mr. Dreiling’ s relocation amount was calculated as follows: $50,000 as a
miscellaneous cash allowance, $4,000 for the cost to transport a personal vehicle from New Jersey to his home in California, $4,803 for
temporary living expenses, $1,129 for transportation costs incurred in connection with house hunting trips and $1,482 for meal expenses
incurred in connection with temporary living.
(8) The 2007 amount represents the aggregate change in the actuarial present value of the accumulated benefit under Mr. Perdue's SERP from
February 2, 2007 to February 1, 2008. Because Mr. Perdue resigned effective July 6, 2007, the fiscal 2007 year-end actuarial present value
of the accumulated benefit is equal to the benefit paid to him in fiscal 2007. The 2006 amount represents the aggregate change in the
actuarial present value of the accumulated benefit under Mr. Perdue’ s SERP from February 4, 2006 to February 2, 2007.
(9) Includes $6,798,000 for severance paid in connection with Mr. Perdue’ s resignation pursuant to his employment agreement, $2,681,201 for
the reimbursement of excise taxes related to the severance payment, $78,438 for unused vacation at the time of Mr. Perdue’ s resignation,
$1,489,398 for the reimbursement of excise taxes related to the payment made to Mr. Perdue for his defined benefit SERP, $71,327 for the
tax reimbursement of excise taxes related to the payment of interest on Mr. Perdue’ s defined benefit SERP, $24,892 for a lump sum
payment in lieu of COBRA payments on behalf of Mr. Perdue, $9,818 for reimbursement of taxes related to the lump sum payment in lieu
of COBRA payments, $19,908 for the reimbursement of taxes related to the COBRA gross up payment, $11,249 for premiums paid under
our life and disability insurance programs, $17,753 for our match contributions to the CDP, $6,667 for our match contributions to the 401(k)
Plan, $6,452 for tax reimbursements related to life and disability insurance premiums, and $23,426 which represents the incremental cost of
providing certain perquisites, including $11,280 for personal use of the company plane and other amounts, which individually did not equal
the greater of $25,000 or 10% of total perquisites, including an annual automobile allowance, a medical physical examination and a Merger
closing gift. We incurred no incremental cost in connection with the occasional travel of Mr. Perdue’ s spouse on our plane while
accompanying him on travel.
(10) Includes $7,806 for premiums paid under our life and disability insurance programs, $53,683 for our contributions to the SERP, $32,872 for
our match contributions to the CDP, $2,854 for our match contributions to the 401(k) Plan, $4,477 for the reimbursement of taxes related to
life and disability insurance premiums, $21,336 for the reimbursement of taxes related to relocation, $4,906 for reimbursement of taxes
related to the personal use of a company-leased automobile, and $59,112 which represents the incremental cost of providing certain
perquisites, including $37,200 for temporary living expenses (calculated as rent and utility payments) associated with relocation, $18,601
for personal use of a company-leased vehicle, and other amounts which individually did not equal the greater of $25,000 or 10% of total
perquisites, including a medical physical examination, expenses related to Mr. Beré’ s and his spouse’ s attendance at sporting events, and a
Merger closing gift. We incurred no incremental cost in connection with the occasional travel of Mr. Beré’ s family members on our plane
while accompanying him on business travel.
(11) Includes $6,412 for premiums paid under our life and disability insurance programs, $58,618 for our contributions to the SERP, $18,403 for
our match contributions to the CDP, $11,198 for our match contributions to the 401(k) Plan, $3,678 for tax reimbursements related to life
and disability insurance premiums, and $32,155 which represents the incremental cost of providing certain perquisites, including $21,000
for an annual automobile allowance and other amounts which individually did not equal the greater of $25,000 or 10% of total perquisites,
including a directed donation to a charity, expenses incurred in connection with his personal use of our plane, and expenses related to Mr.
Tehle’ s and his guests’ attendance at sporting events.
(12) Includes $3,294 for premiums paid under our life and disability insurance programs, $34,868 for our contributions to the SERP, $18,148 for
our match contributions to the CDP, $11,174 for our match contributions to the 401(k) Plan, $1,890 for the reimbursement of taxes related
to life and disability insurance premiums, $2,182 for the reimbursement of taxes related to relocation, and $39,678 which represents the
incremental cost of providing certain perquisites, including $21,000 for an annual automobile allowance, $6,069 for an expense related to
selling his prior home, $5,000 for a directed charitable donation and other amounts which individually did not equal the greater of $25,000
or 10% of total perquisites, including expenses relating to Mr. Buley’ s and his guests’ attendance at sporting events, a fee to attend a Young
Presidents’ Organization meeting and a medical physical examination. We incurred no incremental cost in connection with the occasional
travel of Mr. Buley’ s spouse on our plane while accompanying him on business travel.