Dollar General 2008 Annual Report Download - page 52

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approximate amounts: $149 million for improvements, upgrades, remodels and relocations of
existing stores; $22 million for new stores; $17 million for distribution and transportation-related
capital expenditures; and $13 million for information systems upgrades and technology-related
projects. During 2008 we opened 207 new stores and remodeled or relocated 404 stores.
Purchases and sales of short-term investments, which equaled net sales of $51.6 million
in 2008, primarily reflect our investment activities in our captive insurance subsidiary, including
a change in regulatory requirements as discussed in more detail above under “Other
Considerations.”
The Merger, as discussed in more detail above, required cash payments in the 2007
Successor period of approximately $6.7 billion, net of cash acquired of $350 million. Significant
components of property and equipment purchases in the 2007 Successor period included the
following approximate amounts: $45 million for improvements, upgrades, remodels and
relocations of existing stores; $23 million for distribution and transportation-related capital
expenditures; and $16 million for new stores. During the 2007 Successor period, we opened 170
new stores and remodeled or relocated 235 stores. Significant components of property and
equipment purchases in the 2007 Predecessor period included the following approximate
amounts: $29 million for new stores; $15 million for improvements, upgrades, remodels and
relocations of existing stores; and $7 million for distribution and transportation-related capital
expenditures. During the 2007 Predecessor period, we opened 195 new stores and remodeled or
relocated 65 stores.
During the 2007 Successor period we purchased a secured promissory note for $37.0
million which represents debt issued by a third-party entity from which we lease our distribution
center in Ardmore, Oklahoma. Purchases and sales of short-term investments, which equaled net
sales of $17.6 million and $4.4 million in the respective 2007 Successor and Predecessor periods,
primarily reflect our investment activities in our captive insurance subsidiary, and all purchases
of long-term investments were related to the captive insurance subsidiary.
Cash flows used in investing activities totaling $282.0 million in 2006 were primarily
related to capital expenditures and, to a lesser degree, purchases of long-term investments.
Significant components of our property and equipment purchases in 2006 included the following
approximate amounts: $66 million for distribution and transportation-related capital expenditures
(including approximately $30 million related to our distribution center in Marion, Indiana which
opened in 2006); $66 million for new stores; $50 million for a capital project designed to
improve inventory flow from our DCs to consumers; and $38 million for capital projects in
existing stores. During 2006 we opened 537 new stores and remodeled or relocated 64 stores.
Purchases and sales of short-term investments in 2006, which equaled net sales of $1.9
million, reflect our investment activities in tax-exempt auction rate securities as well as investing
activities of our captive insurance subsidiary. Purchases of long-term investments are related to
the captive insurance subsidiary.
Capital expenditures during 2009 are projected to be in the range of $250-275 million.
We anticipate funding 2009 capital requirements with cash flows from operations and our
revolving credit facility, if necessary. Significant components of the 2009 capital plan include