Dollar General 2008 Annual Report Download - page 99

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97
Future minimum payments as of January 30, 2009 for capital and operating leases are as
follows:
(In thousands)
Capital
Leases
Operating
Leases
2010
$
3,144
$
358,367
2011
2,097
308,503
2012
1,128
260,502
2013
599
211,049
2014
599
160,917
Thereafter
5,877
372,597
Total minimum payments
13,444
$
1,671,935
Less: imputed interest
(3,505)
Present value of net minimum lease
payments
9,939
Less: current portion, net
(2,658)
Long-term portion
$
7,281
Capital leases were discounted at an effective interest rate of approximately 5.4% at
January 30, 2009. The gross amount of property and equipment recorded under capital leases
and financing obligations at January 30, 2009 and February 1, 2008, was $34.8 million and $33.5
million, respectively. Accumulated depreciation on property and equipment under capital leases
and financing obligations at January 30, 2009 and February 1, 2008, was $5.3 million and $2.7
million, respectively.
Rent expense under all operating leases is as follows:
Successor Predecessor
(In thousands) 2008
March 6, 2007
through
February 1, 2008
February 3, 2007
through
July 6, 2007
2006
Minimum rentals (a)
$
370,827
$
205,672
$
143,188
$
327,911
Contingent rentals
18,796
8,780
6,964
16,029
$
389,623
$
214,452
$
150,152
$
343,940
(a) Excludes net contract termination costs of $2.5 million, $2.4 million, $19.1 million, and $5.7 million for the
Successor periods ended January 30, 2009 and 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 $40.9 million and $23.7 million included in rent expense for the Successor periods
ended January 30, 2009 and 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 Fair Labor Standards Act (“FLSA”) and seeks to recover overtime pay,