Dollar General 2013 Annual Report Download - page 158

DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Commitments and contingencies (Continued)
would seek as much as $47 million although the court limited their ability to prove such damages. The
case was consolidated with similar cases against Big Lots and Dollar Tree. The court issued an order on
August 10, 2012 in which it (i) dismissed all claims for damages, (ii) dismissed claims for injunctive
relief for all but four stores, and (iii) directed the Company to report to the court on its compliance
with restrictive covenants at the four stores for which it did not dismiss the claims for injunctive relief.
The Company believes that compliance with the August 2012 ruling will have no material adverse
impact on the Company or its consolidated financial statements.
On August 28, 2012, plaintiffs filed a notice of appeal with the United States Court of Appeals for
the Eleventh Circuit (Docket No. 12-14527-B). Oral argument was conducted on January 16, 2014, and
the appellate court rendered its decision on March 5, 2014, affirming in part and reversing in part the
trial court’s decision. Specifically, the appellate court affirmed the trial court’s dismissal of plaintiffs’
claim for monetary damages but reversed the trial court’s decision denying injunctive relief as to
thirteen additional stores and remanded for further proceedings. At this time, the Company is unable
to predict whether the trial court will enter an injunction as to any of the additional stores at issue;
however, the Company does not believe that such an injunction, even if entered as to each remaining
additional store at issue, would have a material adverse effect on the Company or its consolidated
financial statements as a whole.
The Company also is unable to predict whether the plaintiffs will seek further appellate review of
the trial court’s dismissal of plaintiff’s claim for damages. If plaintiffs were to obtain further appellate
review, and the Company is unsuccessful in its defense of such appeal, the outcome could have a
material adverse effect on the Company’s consolidated financial statements as a whole.
From time to time, the Company is a party to various other legal actions involving claims
incidental to the conduct of its business, including actions by employees, consumers, suppliers,
government agencies, or others through private actions, class actions, administrative proceedings,
regulatory actions or other litigation, including without limitation under federal and state employment
laws and wage and hour laws. The Company believes, based upon information currently available, that
such other litigation and claims, both individually and in the aggregate, will be resolved without a
material adverse effect on the Company’s financial statements as a whole. However, litigation involves
an element of uncertainty. Future developments could cause these actions or claims to have a material
adverse effect on the Company’s results of operations, cash flows, or financial position. In addition,
certain of these lawsuits, if decided adversely to the Company or settled by the Company, may result in
liability material to the Company’s financial position or may negatively affect operating results if
changes to the Company’s business operation are required.
9. Benefit plans
The Dollar General Corporation 401(k) Savings and Retirement Plan, which became effective on
January 1, 1998, is a safe harbor defined contribution plan and is subject to the Employee Retirement
and Income Security Act (‘‘ERISA’’).
A participant’s right to claim a distribution of his or her account balance is dependent on the plan,
ERISA guidelines and Internal Revenue Service regulations. All active participants are fully vested in
all contributions to the 401(k) plan. During 2013, 2012 and 2011, the Company expensed approximately
$13.0 million, $11.9 million and $10.9 million, respectively, for matching contributions.
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10-K