Dollar General 2009 Annual Report Download - page 102

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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Commitments and contingencies (Continued)
Future minimum payments as of January 29, 2010 for capital and operating leases are as follows:
Capital Operating
(In thousands) Leases Leases
2010 .......................................... $ 2,295 $ 423,813
2011 .......................................... 1,558 391,031
2012 .......................................... 1,135 342,811
2013 .......................................... 599 283,496
2014 .......................................... 602 226,189
Thereafter ...................................... 5,237 657,697
Total minimum payments ........................... 11,426 $2,325,037
Less: imputed interest ............................. (3,099)
Present value of net minimum lease payments ............ 8,327
Less: current portion, net ........................... (1,849)
Long-term portion ................................ $ 6,478
Capital leases were discounted at an effective interest rate of approximately 5.7% at January 29,
2010. The gross amount of property and equipment recorded under capital leases and financing
obligations at both January 29, 2010 and at January 30, 2009, was $34.8 million. Accumulated
depreciation on property and equipment under capital leases and financing obligations at January 29,
2010 and January 30, 2009, was $6.9 million and $5.3 million, respectively.
Rent expense under all operating leases is as follows:
Successor Predecessor
March 6, 2007 February 3, 2007
through through
(In thousands) 2009 2008 February 1, 2008 July 6, 2007
Minimum rentals(a) ..................... $407,379 $370,827 $205,672 $143,188
Contingent rentals ...................... 21,248 18,796 8,780 6,964
$428,627 $389,623 $214,452 $150,152
(a) Excludes net contract termination costs of $2.5 million, $2.4 million and $19.1 million for the
Successor periods ended January 30, 2009 and February 1, 2008 and the Predecessor period ended
July 6, 2007, respectively. These expenses were recorded in association with the closing of stores
associated with strategic initiatives implemented primarily in 2007. Also excludes amortization of
leasehold interests of $37.2 million, $40.9 million and $23.7 million included in rent expense for
the Successor periods ended January 29, 2010, January 30, 2009 and February 1, 2008, respectively.
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
91