Dollar General 2012 Annual Report Download - page 98

10-K
New accounting guidance or changes in the interpretation or application of existing accounting guidance
could adversely affect our financial performance.
The implementation of proposed new accounting standards may require extensive systems, internal
process and other changes that could increase our operating costs, and may also result in changes to
our financial statements. In particular, the implementation of expected future accounting standards
related to leases, as currently being contemplated by the convergence project between the Financial
Accounting Standards Board (‘‘FASB’’) and the International Accounting Standards Board (‘‘IASB’’), as
well as the possible adoption of international financial reporting standards by U.S. registrants, could
require us to make significant changes to our lease management, fixed asset, and other accounting
systems, and in all likelihood would result in changes to our financial statements.
U.S. generally accepted accounting principles and related accounting pronouncements,
implementation guidelines and interpretations with regard to a wide range of matters that are relevant
to our business involve many subjective assumptions, estimates and judgments by our management.
Changes in these rules or their interpretation or changes in underlying assumptions, estimates or
judgments by our management could significantly change our reported or expected financial
performance. The outcome of such changes could include litigation or regulatory actions which could
have an adverse effect on our financial condition and results of operations.
Kohlberg Kravis Roberts & Co. L.P. (‘‘KKR’’), certain affiliates of Goldman, Sachs & Co. (the ‘‘GS
Investors’’), and other equity co-investors (collectively, the ‘‘Investors’’) continue to have influence over us,
including in connection with decisions that require the approval of shareholders.
Through their investment in Buck Holdings, L.P., the Investors continue to hold a significant
interest in our outstanding common stock (approximately 17% of our outstanding common stock as of
March 15, 2013). As a result, the Investors potentially have the ability to influence the outcome of
matters that require a vote of our shareholders, including election of our Board of Directors and other
corporate transactions, regardless of whether others believe that the transaction is in our best interests.
In addition, pursuant to a shareholders’ agreement that we entered into with Buck Holdings, L.P.,
based on the current ownership by Buck Holdings, L.P. of our common stock, KKR has certain rights
to appoint directors to our Board.
The Investors are also in the business of making investments in companies and may from time to
time acquire and hold interests in businesses that compete directly or indirectly with us. The Investors
may also pursue acquisition opportunities that are complementary to our business, and, as a result,
those acquisition opportunities may not be available to us.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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