Dollar General 2012 Annual Report Download - page 123

10-K
Significant components of property and equipment purchases in 2011 included the following
approximate amounts: $120 million for distribution centers, including the construction of the
distribution center in Alabama; $114 million for new leased stores; $80 million for improvements and
upgrades to existing stores; $80 million for stores purchased or built by us; $73 million for remodels
and relocations of existing stores; $28 million for systems-related capital projects; and $15 million for
transportation-related projects. During 2011, we opened 625 new stores and remodeled or relocated
575 stores.
Significant components of our property and equipment purchases in 2010 included the following
approximate amounts: $104 million for improvements and upgrades to existing stores; $100 million for
new leased stores; $91 million for stores purchased or built by us; $53 million for remodels and
relocations of existing stores; $45 million for distribution and transportation-related capital
expenditures; and $22 million for information systems upgrades and technology-related projects. During
2010 we opened 600 new stores and remodeled or relocated 504 stores.
Capital expenditures during 2013 are projected to be in the range of $575-$625 million. We
anticipate funding 2013 capital requirements with cash flows from operations, and if necessary, we also
have significant availability under our ABL Facility. We plan to continue to invest in store growth and
development of approximately 635 new stores and approximately 550 stores to be remodeled or
relocated. Capital expenditures in 2013 are anticipated for the construction of new stores; costs related
to new leased stores such as leasehold improvements, fixtures and equipment; the purchase of existing
stores; continued investment in our existing store base including our plans to improve the productivity
of our legacy stores; our tobacco initiative; transportation and distribution, including a new distribution
center that is under construction in Pennsylvania; and also for routine and ongoing capital
requirements.
Included in our 2013 new store growth plans are approximately 20 new Dollar General Market
stores and approximately 40 Dollar General Plus stores, which will expand our presence in markets
such as California and Nevada. The Market and Plus stores require higher investments than our
traditional stores which can vary depending on numbers of coolers, square feet, type of construction
and layout. Because we continue to test several different formats, the costs of rolling out these concepts
in larger quantities, should we decide to do so, are uncertain at the present time. Any plans to
undertake these expenditures would be part of our efforts to improve our infrastructure and increase
our cash generated from operating activities.
Cash flows from financing activities. In 2012 we repurchased 14.4 million outstanding shares of our
common stock at a total cost of $671.4 million, including 11.7 million shares repurchased from Buck
Holdings, L.P. In July 2012, we issued $500.0 million aggregate principal amount of 4.125% senior notes
due 2017. Also in July 2012, we redeemed the remaining aggregate principal amount of our Senior
Subordinated Notes at a redemption price of 105.938% of the principal amount thereof, resulting in a
cash outflow of $477.5 million. Net borrowings under the ABL Facility were $101.8 million during 2012.
In July 2011, we redeemed $839.3 million aggregate principal amount of our outstanding senior
notes due 2015 at total cost of $883.9 million including associated premiums, and in April 2011, we
repurchased in the open market $25.0 million aggregate principal amount of senior notes due 2015 at a
total cost of $26.8 million including associated premiums. A portion of the July 2011 redemption of
senior notes due 2015 was financed by borrowings under the ABL Facility. Net borrowings under the
ABL Facility were $184.7 million during 2011. In December 2011, we repurchased 4.9 million
outstanding shares from Buck Holdings, L.P. at a total cost of $185.0 million.
During 2010, we repurchased $115.0 million principal amount of outstanding senior notes due 2015
at a total cost of $127.5 million including associated premiums. We had no borrowings or repayments
under the ABL Facility in 2010.
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