Dollar General 2013 Annual Report Download - page 117

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 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 $3.6 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 $18.8 million of reserves for
uncertain tax positions.
Share Repurchase Program
On December 4, 2013, the Company’s Board of Directors authorized a $1.0 billion increase to our
existing common stock repurchase program. The total remaining authorization is approximately
$824 million at March 13, 2014. Under the authorization, purchases may be made in the open market
or in privately negotiated transactions from time to time subject to market and other conditions, and
the authorization has no expiration date. For more detail about our share repurchase program, see
Note 13 to the consolidated financial statements.
Other Considerations
We have not declared or paid recurring dividends subsequent to a merger transaction in 2007. Any
decision to declare and pay dividends in the future will be made at the discretion of our Board of
Directors, and will depend on, among other things, our results of operations, cash requirements,
financial condition, contractual restrictions and other factors that our Board of Directors may deem
relevant.
Our inventory balance represented approximately 48% of our total assets exclusive of goodwill and
other intangible assets as of January 31, 2014. Our ability to effectively manage our inventory balances
can have a significant impact on our cash flows from operations during a given fiscal year. Inventory
purchases are often somewhat seasonal in nature, such as the purchase of warm-weather or Christmas-
related merchandise. Efficient management of our inventory has been and continues to be an area of
focus for us.
As described in Note 8 to the consolidated financial statements, we are involved in a number of
legal actions and claims, some of which could potentially result in material cash payments. Adverse
developments in those actions could materially and adversely affect our liquidity. We also have certain
income tax-related contingencies as disclosed in Note 4 to the consolidated financial statements. Future
negative developments could have a material adverse effect on our liquidity.
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