Dollar General 2007 Annual Report Download - page 89
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87
Future minimum payments as of February 1, 2008 for capital and operating leases are as
follows:
(In thousands) Capital
Leases
Operating
Leases
2008 $ 3,740 $ 335,457
2009 1,909 286,490
2010 810 237,873
2011 599 198,954
2012 599 158,464
Thereafter 6,476 396,977
Total minimum payments 14,133 $ 1,614,215
Less: imputed interest (3,865)
Present value of net minimum lease
payments 10,268
Less: current portion, net (3,246)
Long-term portion $ 7,022
Capital leases were discounted at an effective interest rate of approximately 5.43% at
February 1, 2008. The gross amount of property and equipment recorded under capital leases
and financing obligations at February 1, 2008 and February 2, 2007, was $33.5 million and $85.1
million, respectively. Accumulated depreciation on property and equipment under capital leases
and financing obligations at February 1, 2008 and February 2, 2007, was $2.7 million and $41.0
million, respectively.
Rent expense under all operating leases is as follows:
Successor Predecessor
(In thousands)
July 7, 2007
through
February 1, 2008
February 3, 2007
through
July 6, 2007 2006 2005
Minimum rentals (a) $ 205,672 $ 143,188 $ 327,911 $ 295,061
Contingent rentals 8,780 6,964 16,029 17,245
$ 214,452 $ 150,152 $ 343,940 $ 312,306
(a) Excludes net contract termination costs of $2.4 million, $19.1 million, and $5.7 million for the
Successor period ended February 1, 2008 and the Predecessor periods ended July 6, 2007 and February
2, 2007, respectively. These expenses were recorded in association with the closing of stores
associated with strategic initiatives as further discussed in Note 3. Also excludes amortization of
leasehold interests of $26.1 million included in rent expense for the Successor period ended February
1, 2008.
Legal proceedings
On August 7, 2006, a lawsuit entitled Cynthia Richter, et al. v. Dolgencorp, Inc., et al.
was filed in the United States District Court for the Northern District of Alabama (Case
No. 7:06-cv-01537-LSC) (“Richter”) in which the plaintiff alleges that she and other current and
former Dollar General store managers were improperly classified as exempt executive
employees under the FLSA and seeks to recover overtime pay, liquidated damages, and