Dollar General 2010 Annual Report Download - page 120

10-K
Contractual Obligations
The following table summarizes our significant contractual obligations and commercial
commitments as of January 28, 2011 (in thousands):
Payments Due by Period
Contractual obligations Total 1 year 1-3 years 3-5 years 5+ years
Long-term debt obligations ......... $3,293,025 $ — $ — $2,827,923 $ 465,102
Capital lease obligations ........... 6,363 1,157 999 679 3,528
Interest(a) ..................... 1,093,039 243,435 486,754 282,408 80,442
Self-insurance liabilities(b) ......... 213,736 78,540 85,881 30,265 19,050
Operating leases(c) .............. 3,003,342 481,921 839,585 614,080 1,067,756
Subtotal ..................... $7,609,505 $ 805,053 $1,413,219 $3,755,355 $1,635,878
Commitments Expiring by Period
Commercial commitments(d) Total 1 year 1-3 years 3-5 years 5+ years
Letters of credit ................ $ 19,059 $ 19,059 $ — $ — $ —
Purchase obligations(e) ........... 853,862 850,871 2,991 — —
Subtotal ..................... $ 872,921 $ 869,930 $ 2,991 $ — $ —
Total contractual obligations and
commercial commitments(f) ...... $8,482,426 $1,674,983 $1,416,210 $3,755,355 $1,635,878
(a) Represents obligations for interest payments on long-term debt and capital lease obligations, and
includes projected interest on variable rate long-term debt, using 2010 year end rates.
(b) We retain a significant portion of the risk for our workers’ compensation, employee health
insurance, general liability, property loss and automobile insurance. As these obligations do not
have scheduled maturities, these amounts represent undiscounted estimates based upon actuarial
assumptions. Reserves for workers’ compensation and general liability which existed as of the date
of our 2007 merger were discounted in order to arrive at estimated fair value. All other amounts
are reflected on an undiscounted basis in our consolidated balance sheets.
(c) Operating lease obligations are inclusive of amounts included in deferred rent and closed store
obligations in our consolidated balance sheets.
(d) Commercial commitments include information technology license and support agreements,
supplies, fixtures, letters of credit for import merchandise, and other inventory purchase
obligations.
(e) Purchase obligations include legally binding agreements for software licenses and support, supplies,
fixtures, and merchandise purchases (excluding such purchases subject to letters of credit).
(f) We have potential payment obligations associated with uncertain tax positions that are not
reflected in these totals. We anticipate that approximately $0.2 million of such amounts will be
paid in the coming year. We are currently unable to make reasonably reliable estimates of the
period of cash settlement with the taxing authorities for our remaining $27.3 million of reserves for
uncertain tax positions.
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