Dollar General 2012 Annual Report Download - page 120

10-K
Contractual Obligations
The following table summarizes our significant contractual obligations and commercial
commitments as of February 1, 2013 (in thousands):
Payments Due by Period
Contractual obligations Total 1 year 1 - 3 years 3 - 5 years 5+ years
Long-term debt obligations .......... $2,764,495 $ — $1,370,390 $1,380,255 $ 13,850
Capital lease obligations ............ 7,733 892 2,034 2,114 2,693
Interest(a) ...................... 271,709 88,827 114,346 67,439 1,097
Self-insurance liabilities(b) .......... 226,585 87,436 88,026 31,473 19,650
Operating leases(c) ............... 4,535,218 611,595 1,077,713 852,464 1,993,446
Subtotal ...................... $7,805,740 $788,750 $2,652,509 $2,333,745 $2,030,736
Commitments Expiring by Period
Commercial commitments(d) Total 1 year 1 - 3 years 3 - 5 years 5+ years
Letters of credit ................ $ 16,461 $ 16,461 $ — $ — $ —
Purchase obligations(e) ........... 622,128 565,954 56,174 — —
Subtotal ..................... $ 638,589 $ 582,415 $ 56,174 $ — $ —
Total contractual obligations and
commercial commitments(f) ...... $8,444,329 $1,371,165 $2,708,683 $2,333,745 $2,030,736
(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 2012 year end rates. Variable rate
long-term debt includes the balance of the senior secured asset-based revolving credit facility of
$286.5 million, the balance of our tax increment financing of $14.5 million, and the unhedged
portion of the senior secured term loan facility of $1.089 billion.
(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 a merger transaction in 2007 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 $1.5 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 $23.4 million of reserves for
uncertain tax positions.
41