Dollar General 2011 Annual Report Download - page 143

10-K
Commitments Expiring by Period
Commercial commitments(d) Total 1 year 1 - 3 years 3 - 5 years 5+ years
Letters of credit .................. $ 16,710 $ 16,710 $ — $ — $ —
Purchase obligations(e) ............. 725,202 723,665 1,537 — —
Subtotal ...................... $ 741,912 $ 740,375 $ 1,537 $ — $ —
Total contractual obligations and
commercial commitments(f) ....... $7,733,747 $1,497,131 $3,400,613 $844,543 $1,991,460
(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 2011 year end rates. Variable rate
long-term debt includes the balance of the senior secured asset-based revolving credit facility of
$184.7 million, the balance of our tax increment financing of $14.5 million, and $1.430 billion of
the senior secured term loan facility net of the effect of interest rate swaps.
(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 $0.3 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 $41.1 million of reserves for
uncertain tax positions.
Recent Developments
On March 15, 2012, the ABL Facility was amended and restated. The maturity date was extended
from July 6, 2013 to July 6, 2014 and the total commitment was increased from $1.031 billion to
$1.2 billion (of which up to $350.0 million is available for letters of credit), subject to borrowing base
availability. The ABL Facility includes borrowing capacity available for letters of credit and for
short-term borrowings referred to as swingline loans. The amount available under the ABL Facility
(including letters of credit) shall not exceed the borrowing base which equals the sum of (i) 90% of the
net orderly liquidation value of all our eligible inventory and that of each guarantor thereunder and
(ii) 90% of all our accounts receivable and credit/debit card receivables and that of each guarantor
thereunder, in each case, subject to customary reserves and eligibility criteria.
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