Dollar General 2008 Annual Report Download - page 85
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83
The allocation of the purchase price is as follows (in thousands):
Cash and cash equivalents
$
349,615
Short-term investments
30,906
Merchandise inventories
1,368,130
Income taxes receivable
40,199
Deferred income taxes
57,176
Prepaid expenses and other current assets
63,204
Property and equipment, net
1,301,119
Goodwill
4,338,589
Intangible assets
1,396,612
Other assets, net
66,537
Current portion of long-term obligations
(7,088)
Accounts payable
(585,518)
Accrued expenses and other
(306,394)
Income taxes payable
(84)
Long-term obligations
(267,927)
Deferred income taxes
(540,675)
Other liabilities
(208,710)
Total purchase price assigned
$
7,095,691
The purchase price allocation as of January 30, 2009 included approximately $4.34
billion of goodwill, none of which is expected to be deductible for tax purposes. The goodwill
balance at February 1, 2008 increased by $21.3 million over the balance immediately following
the Merger, representing a refinement of the purchase price allocation related to the Merger. The
goodwill balance at January 30, 2009 decreased $6.3 million from February 1, 2008 due to an
adjustment to income tax contingencies as further discussed in Note 5. The purchase price
allocation as of January 30, 2009 and February 1, 2008 also included approximately $1.4 billion
of other intangible assets, as follows:
As of January 30, 2009
(In thousands)
Estimated
Useful Life Amount
Accumulated
Amortization Net
Leasehold interests
2 to 17.5 years
$
184,570
$
64,020
$
120,550
Internally developed software
3 years
12,300
6,492
5,808
196,870
70,512
126,358
Trade names and trademarks
Indefinite
1,199,200
-
1,199,200
$
1,396,070
$
70,512
$
1,325,558
As of February 1, 2008
(In thousands)
Estimated
Useful Life
Amount
Accumulated
Amortization
Net
Leasehold interests
2 to 17.5 years
$
185,112
$
23,663
$
161,449
Internally developed software
3 years
12,300
2,392
9,908
197,412
26,055
171,357
Trade names and trademarks
Indefinite
1,199,200
-
1,199,200
$
1,396,612
$
26,055
$
1,370,557
The Company recorded amortization expense related to amortizable intangible assets for
2008 and the 2007 Successor period of $45.0 million and $26.1 million, respectively, ($40.9
million and $23.7 million, respectively, of which is included in rent expense).