Dollar General 2010 Annual Report Download - page 170

Download and view the complete annual report

Please find page 170 of the 2010 Dollar General annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 196

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196

10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Quarterly financial data (unaudited) (Continued)
As discussed in Note 7, in the third quarter of 2010, the Company repurchased $65.0 million
principal amount of its outstanding Senior Notes, resulting in a pretax loss of $8.2 million ($5.0 million
net of tax, or $0.01 per diluted share) which is recognized as Other (income) expense.
As discussed in Note 11, in the fourth quarter of 2010 the Company incurred share-based
compensation expenses of $3.8 million ($2.3 million net of tax, or $0.01 per diluted share) for the
accelerated vesting of certain share-based awards in conjunction with a secondary offering of the
Company’s common stock which is included in SG&A expenses.
As discussed in Note 12, in the fourth quarter of 2009, the Company terminated an advisory
agreement with KKR and Goldman, Sachs & Co. pursuant to which those entities provided
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.
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.
92