Dollar General 2011 Annual Report Download - page 168

10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. Common stock transactions (Continued)
Company also incurred charges for the accelerated vesting of certain share-based awards as discussed in
more detail in Note 11 below.
On September 8, 2009, the Company’s Board of Directors declared a special dividend on the
Company’s outstanding common stock (including shares of restricted stock) of $0.7525 per share, which
was paid on September 11, 2009 to shareholders of record on September 8, 2009. The special dividend
was paid with cash generated from operations. Pursuant to the terms of the Company’s stock option
plans, holders of stock options received either a pro-rata adjustment to the terms of their share-based
awards or a cash payment in substitution for such adjustment as a result of the dividend. Aggregate
payments for the dividend and related share-based amounts totaled approximately $239.7 million.
3. Goodwill and other intangible assets
As of February 3, 2012 and January 28, 2011, the balances of the Company’s intangible assets were
as follows:
As of February 3, 2012
Remaining Accumulated
(In thousands) Life Amount Amortization Net
Goodwill ............................. Indefinite $4,338,589 $ — $4,338,589
Other intangible assets:
Leasehold interests .................... 1 to 11 years $ 122,169 $85,415 $ 36,754
Trade names and trademarks ............. Indefinite 1,199,200 — 1,199,200
$1,321,369 $85,415 $1,235,954
As of January 28, 2011
Remaining Accumulated
(In thousands) Life Amount Amortization Net
Goodwill ............................. Indefinite $4,338,589 $ — $4,338,589
Other intangible assets:
Leasehold interests .................... 1 to 12 years $ 141,180 $83,458 $ 57,722
Trade names and trademarks ............. Indefinite 1,199,200 — 1,199,200
$1,340,380 $83,458 $1,256,922
The Company recorded amortization expense related to amortizable intangible assets for 2011,
2010 and 2009 of $21.0 million, $27.4 million and $41.3 million, respectively, ($21.0 million,
$25.7 million and $37.2 million, respectively, of which is included in rent expense). Expected future
cash flows associated with the Company’s intangible assets are not expected to be materially affected by
the Company’s intent or ability to renew or extend the arrangements. The Company’s goodwill balance
is not expected to be deductible for tax purposes.
For intangible assets subject to amortization, the estimated aggregate amortization expense for
each of the five succeeding fiscal years is as follows: 2012—$16.9 million, 2013—$11.9 million, 2014—
$5.8 million, 2015—$0.9 million and 2016—$0.3 million.
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