Dollar General 2013 Annual Report Download - page 119

2013 included the following approximate amounts: $187 million for improvements, upgrades, remodels
and relocations of existing stores; $124 million for new leased stores; $112 million for distribution
centers, which included a significant portion of the construction cost of a distribution center in
Pennsylvania; $76 million for stores purchased or built by us; and $28 million for information systems
upgrades and technology-related projects. The timing of new, remodeled and relocated store openings
along with other factors may affect the relationship between such openings and the related property
and equipment purchases in any given period. During 2013, we opened 650 new stores and remodeled
or relocated 582 stores. Our sale-leaseback transaction which we consummated in January 2014 for 233
of our stores resulted in proceeds from the sale of these properties of approximately $281.6 million.
See ‘‘—Liquidity and Capital Resources’’
Significant components of property and equipment purchases in 2012 included the following
approximate amounts: $155 million for new leased stores; $151 million for improvements, upgrades,
remodels and relocations of existing stores; $132 million for stores purchased or built by us; $83 million
for distribution centers; $27 million for systems-related capital projects; and $17 million for
transportation-related projects. During 2012, we opened 625 new stores and remodeled or relocated
592 stores.
Significant components of property and equipment purchases in 2011 included the following
approximate amounts: $153 million for improvements, upgrades, remodels and relocations of existing
stores; $120 million for distribution centers, including costs associated with the construction of a
distribution center in Alabama; $114 million for new leased stores; $80 million for stores purchased or
built by us; $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.
Capital expenditures during 2014 are projected to be in the range of $450-$500 million. We
anticipate funding 2014 capital requirements with existing cash balances, cash flows from operations,
and if necessary, as of January 31, 2014, we also have significant availability under our Revolving
Facility. We plan to continue to invest in store growth and development of approximately 700 new
stores and approximately 500 stores to be remodeled or relocated. Capital expenditures in 2014 are
anticipated to support our store growth as well as our remodel and relocation initiatives, including
capital outlays for leasehold improvements, fixtures and equipment; the construction of new stores;
costs to support and enhance our supply chain and technology initiatives; and also routine and ongoing
capital requirements.
Cash flows from financing activities. The 2013 cash flows from financing activities reflect our
refinancing in April 2013, including the issuance of long-term obligations which includes the $1.0 billion
unsecured Term Facility and the issuance of Senior Notes totaling approximately $1.3 billion. Proceeds
from these transactions were used to extinguish our previous secured term loan and revolving credit
facilities which had balances of $1.96 billion and $155.6 million at termination. Net repayments under
the Revolving Facility were $130.9 million during 2013. We paid debt issuance costs and hedging fees
totaling $29.2 million in 2013 related to the refinancing. Also in 2013, we repurchased 11.0 million
outstanding shares of our common stock at a total cost of $620.1 million.
In 2012 we repurchased 14.4 million outstanding shares of our common stock at a total cost of
$671.4 million. 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 senior
subordinated notes due 2017 at a redemption price of 105.938% of the principal amount thereof,
resulting in a cash outflow of $477.5 million. Net borrowings under our senior secured revolving credit
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
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10-K