Dollar General 2007 Annual Report Download - page 43

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stock. These authorizations allowed purchases in the open market or in privately negotiated
transactions from time to time, subject to market conditions. During 2006, we purchased
approximately 4.5 million shares pursuant to the 2005 authorization at a total cost of $79.9
million. During 2005, we purchased approximately 15.0 million shares pursuant to the 2005 and
a prior authorization at a total cost of $297.6 million.
We may seek, from time to time, to retire the notes (as defined above) through cash
purchases on the open market, in privately negotiated transactions or otherwise. Such
repurchases, if any, will depend on prevailing market conditions, our liquidity requirements,
contractual restrictions and other factors. The amounts involved may be material.
The following table summarizes our significant contractual obligations and commercial
commitments as of February 1, 2008 (in thousands):
Payments Due by Period
Contractual obligations Total < 1 yr 1-3 yrs 3-5 yrs > 5 yrs
Long-term debt obligations $ 4,293,718 $ - $ 36,223 $ 46,000 $ 4,211,495
Capital lease obligations 10,268 3,246 1,957 526 4,539
Interest (a) 2,817,237 382,587 762,872 756,070 915,708
Self-insurance liabilities (b) 203,600 68,613 89,815 26,612 18,560
Operating leases (c) 1,614,215 335,457 524,363 357,418 396,977
Monitoring agreement (d) 24,903 5,250 10,763 8,890 -
Subtotal $ 8,963,941 $ 795,153 $ 1,425,993 $ 1,195,516 $ 5,547,279
Commitments Expiring by Period
Commercial commitments (e) Total < 1 yr 1-3 yrs 3-5 yrs > 5 yrs
Letters of credit $ 28,778 $28,778 $ - $ - $ -
Purchase obligations (f) 385,366 384,892 474 - -
Subtotal $ 414,144 $ 413,670 $ 474 $ - $ -
Total contractual obligations and
commercial commitments $ 9,378,085 $ 1,208,823 $ 1,426,467 $ 1,195,516 $ 5,547,279
(a) Represents obligations for interest payments on long-term debt and capital lease obligations, and includes projected interest on variable rate
long-term debt, based upon 2007 year end 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. Reserves for workers’ compensation and general liability which existed as of the Merger date were discounted in
order to arrive at estimated fair value. All other 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) We entered into a monitoring agreement, dated July 6, 2007, with affiliates of certain of our Investors pursuant to which those entities will
provide management and advisory services. Such agreement has no contractual term and for purposes of this schedule is presumed to be
outstanding for a period of five years.
(e) Commercial commitments include information technology license and support agreements, supplies, fixtures, letters of credit for import
merchandise, and other inventory purchase obligations.
(f) Purchase obligations include legally binding agreements for software licenses and support, supplies, fixtures, and merchandise purchases
excluding such purchases subject to letters of credit.
In 2007 and 2006, 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 1, 2008, these cash and cash equivalents balances and
investments balances were $11.9 million and $51.5 million, respectively.