Dollar General 2010 Annual Report Download - page 95

10-K
If we fail to protect our brand name, competitors may adopt tradenames that dilute the value of our
brand name.
We may be unable or unwilling to strictly enforce our trademarks in each jurisdiction in which we
do business. Also, we may not always be able to successfully enforce our trademarks against
competitors, or against challenges by others. Our failure to successfully protect our trademarks could
diminish the value and efficacy of our brand recognition, and could cause customer confusion, which
could, in turn, adversely affect our sales and profitability.
Our success depends on our executive officers and other key personnel. If we lose key personnel or are
unable to hire additional qualified personnel, our business may be harmed.
Our future success depends to a significant degree on the skills, experience and efforts of our
executive officers and other key personnel. The loss of the services of any of our executive officers,
particularly Richard W. Dreiling, our Chief Executive Officer, could have a material adverse effect on
our operations. Our future success will also depend on our ability to attract and retain qualified
personnel and a failure to attract and retain new qualified personnel could have an adverse effect on
our operations. We do not currently maintain key person life insurance policies with respect to our
executive officers or key personnel.
We face risks related to protection of customers’ credit and debit card data and private data relating to us
or our customers or employees.
In connection with credit card sales, we transmit confidential credit and debit card information. We
also have access to, collect or maintain private or confidential information regarding our customers and
employees, as well as our business. We have procedures and technology in place to safeguard our
customers’ debit and credit card information, our employees’ private data, and our confidential business
information. However, third parties may have the technology or know-how to breach the security of this
information, and our security measures and those of our technology vendors may not effectively
prohibit others from obtaining improper access to this information. A security breach of any kind could
expose us to risks of data loss, litigation, government enforcement actions and costly response
measures, and could seriously disrupt our operations. Any resulting negative publicity could significantly
harm our reputation which could cause us to lose market share and have an adverse effect in our
financial results.
While we have reduced our debt levels since 2007, we continue to have substantial debt that will need to
be repaid or refinanced at or prior to applicable maturity dates which could adversely affect our ability to
raise additional capital to fund our operations and limit our ability to pursue our growth strategy or other
opportunities or to react to changes in the economy or our industry.
At January 28, 2011, we had total outstanding debt (including the current portion of long-term
obligations) of $3.29 billion, including a $1.964 billion senior secured term loan facility which matures
on July 6, 2014, $864.3 million aggregate principal amount of 10.625% senior notes due 2015 and
$450.7 million aggregate principal amount of 11.875% / 12.625% senior subordinated toggle notes due
2017. We also had an additional $959.3 million available for borrowing under our senior secured asset-
based revolving credit facility of up to $1.031 billion, which matures July 6, 2013. This level of debt and
our ability to repay or refinance this debt prior to maturity could have important negative consequences
to our business, including:
• increasing our vulnerability to general economic and industry conditions because our debt
payment obligations may limit our ability to use our cash to respond to or defend against
changes in the industry or the economy;
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