Dollar General 2008 Annual Report Download - page 49

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The following table summarizes our significant contractual obligations and commercial
commitments as of January 30, 2009 (in thousands):
Payments Due by Period
Contractual obligations
Total
< 1 yr
1-3 yrs
3-5 yrs
> 5 yrs
Long-term debt obligations
$
4,147,109
$
11,500
$
47,723
$
46,000
$
4,041,886
Capital lease obligations
9,939
2,658
2,471
564
4,246
Interest (a) 2,159,555
332,792 661,518 656,169 509,076
Self-insurance liabilities (b)
216,817
70,047
93,198
30,590
22,982
Operating leases (c)
1,671,935
358,367
569,005
371,966
372,597
Monitoring agreement (d)
20,682
5,403
11,630
3,649
-
Subtotal
$
8,226,037
$
780,767
$
1,385,545
$
1,108,938
$
4,950,787
Commitments Expiring by Period
Commercial
commitments (e)
Total
< 1 yr
1-3 yrs
3-5 yrs
> 5 yrs
Letters of credit
$
51,014
$
51,014
$
-
$
-
$
-
Purchase obligations (f)
634,014
632,857
1,157
-
-
Subtotal
$
685,028
$
683,871
$
1,157
$
-
$
-
Total contractual obligations and
commercial commitments $ 8,911,065
$ 1,464,638 $ 1,386,702 $ 1,108,938 $ 4,950,787
(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 2008 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 2008 and 2007, our South Carolina-based wholly owned captive insurance subsidiary,
Ashley River Insurance Company (“ARIC”), had investments in U.S. Government securities,
obligations of Government Sponsored Enterprises, short- and long-term corporate obligations,
and asset-backed obligations. These investments were held pursuant to South Carolina regulatory
requirements to maintain certain asset balances in relation to ARIC’ s liability and equity
balances which could limit our ability to use these assets for general corporate purposes. In May
2008, the state of South Carolina made certain changes to these regulatory requirements, which
had the effect of reducing the amounts and types of investments required, allowing ARIC to
liquidate investments (primarily U.S. Government and corporate debt securities) totaling $48.6
million during 2008. At January 30, 2009, the asset balances held pursuant to these regulatory
requirements equaled $20.0 million and were reflected in our consolidated balance sheet as cash
and cash equivalents.