Dollar General 2014 Annual Report Download - page 113

10-K
Contractual Obligations
The following table summarizes our significant contractual obligations and commercial
commitments as of January 30, 2015 (in thousands):
Payments Due by Period
Contractual obligations Total 1 year 1 - 3 years 3 - 5 years 5+ years
Long-term debt obligations ......... $2,736,995 $ 100,090 $ 700,555 $1,025,955 $ 910,395
Capital lease obligations ........... 5,875 1,068 2,114 957 1,736
Interest(a) ..................... 353,570 71,770 125,478 61,967 94,355
Self-insurance liabilities(b) ......... 225,021 83,165 93,738 31,097 17,021
Operating leases(c) .............. 6,626,501 793,274 1,454,936 1,232,628 3,145,663
Subtotal ..................... $9,947,962 $1,049,367 $2,376,821 $2,352,604 $4,169,170
Commitments Expiring by Period
Commercial commitments(d) Total 1 year 1 - 3 years 3 - 5 years 5+ years
Letters of credit ................ $ 15,100 $ 15,100 $ — $ — $ —
Purchase obligations(e) .......... 987,784 963,720 24,064 — —
Subtotal .................... $ 1,002,884 $ 978,820 $ 24,064 $ — $ —
Total contractual obligations and
commercial commitments(f) ..... $10,950,846 $2,028,187 $2,400,885 $2,352,604 $4,169,170
(a) Represents obligations for interest payments on long-term debt and capital lease obligations, and
includes projected interest on variable rate long-term debt, using 2014 year end rates. Variable rate
long-term debt includes the balance of the senior revolving credit facility (which had a balance of
zero as of January 30, 2015), the balance of our tax increment financing of $12.0 million, and the
unhedged portion of the senior term loan facility of $50 million.
(b) We retain a significant portion of the risk for our workers’ compensation, employee health
insurance, general liability, property loss and automobile insurance. As these obligations do not
have scheduled maturities, these amounts represent undiscounted estimates based upon actuarial
assumptions. Reserves for workers’ compensation and general liability which existed as of the date
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 are currently unable to make reasonably reliable estimates of the
period of cash settlement with the taxing authorities for the $10.7 million of reserves for uncertain
tax positions.
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