Dollar General 2009 Annual Report Download - page 115

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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Quarterly financial data (unaudited) (Continued)
management and advisory services to the Company, which resulted in a pretax charge of approximately
$58.8 million ($46.2 million net of tax, or $0.14 per diluted share), which is included in SG&A
expenses.
As discussed in Note 7, in the fourth quarter of 2009, the Company repurchased $195.7 million
principal amount of its outstanding Senior Notes, $205.2 million principal amount of its outstanding
Senior Subordinated Notes, and repaid $325.0 million principal amount on the Term Loan Facility,
resulting in a pretax loss of $55.3 million ($33.8 million net of tax, or $0.10 per diluted share) which is
recognized as Other (income) expense.
As discussed in Note 11, in the fourth quarter of 2009 the Company incurred share-based
compensation expenses of $9.4 million ($5.8 million net of tax, or $0.02 per diluted share) for the
accelerated vesting of certain share-based awards in conjunction with the Company’s initial public
offering which is included in SG&A expenses.
As discussed in Note 1, in the second, third, and fourth quarters of 2008, the Company recorded
LIFO provisions of $16.0 million ($9.7 million net of tax, or $0.03 per diluted share), $15.7 million
($9.6 million net of tax, or $0.03 per diluted share), and $12.1 million ($7.4 million net of tax, or $0.02
per diluted share), respectively. These charges are reflected in Cost of goods sold.
As discussed in Note 9, in the third quarter of 2008, based on the agreement in principle to settle
the Merger-related shareholder litigation, the Company recorded charges of approximately
$34.5 million ($37.4 million net of tax, or $0.12 per diluted share) in connection with the proposed
settlement, which was net of anticipated insurance proceeds of $7.5 million. In the fourth quarter of
2008, the Company received insurance proceeds totaling $10.0 million, thus reducing the charges to
$32.0 million net of insurance proceeds and increasing operating profit by the incremental $2.5 million
($1.5 million net of tax, or less than $0.01 per diluted share). These amounts are reflected as Litigation
settlement and related costs, net in the respective quarters.
As discussed in Note 7, in the fourth quarter of 2008, the Company repurchased $44.1 million
principal amount of its outstanding Senior Subordinated Notes resulting in a net gain of $3.8 million
($2.3 million net of tax, or $0.01 per diluted share) which is recognized as Other (income) expense.
As discussed in Note 9, in the fourth quarter of 2008, the Company recorded an $8.6 million
charge ($5.3 million net of tax, or $0.02 per diluted share) included in Cost of goods sold related to the
markdown of certain products covered by the Consumer Products Safety Improvement Act of 2008.
15. Guarantor subsidiaries
Certain of the Company’s subsidiaries (the ‘‘Guarantors’’) have fully and unconditionally
guaranteed on a joint and several basis the Company’s obligations under certain outstanding debt
obligations. Each of the Guarantors is a direct or indirect wholly-owned subsidiary of the Company.
104