Dollar General 2014 Annual Report Download - page 144

10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Current and long-term obligations (Continued)
The Senior Indenture also provides for events of default which, if any of them occurs, would
permit or require the principal of and accrued interest on the Senior Notes to become or to be
declared due and payable.
On July 15, 2012, the Company redeemed $450.7 million aggregate principal amount of
outstanding senior subordinated notes due 2017 at a premium, resulting in a pretax loss of
$29.0 million which is reflected in Other (income) expense in the consolidated statement of income for
the year ended February 1, 2013. The Company funded the redemption price for the senior
subordinated notes due 2017 with proceeds from the issuance of the 2017 Senior Notes.
Scheduled debt maturities, including capital lease obligations, for the Company’s fiscal years listed
below are as follows (in thousands): 2015—$101,158; 2016—$101,379; 2017—$601,290; 2018—
$1,025,892; 2019—$1,020; thereafter—$912,131.
6. Assets and liabilities measured at fair value
The following table presents the Company’s assets and liabilities measured at fair value on a
recurring basis as of January 30, 2015, aggregated by the level in the fair value hierarchy within which
those measurements are classified.
Quoted Prices
in Active
Markets Significant
for Identical Other Significant
Assets and Observable Unobservable Balance at
Liabilities Inputs Inputs January 30,
(In thousands) (Level 1) (Level 2) (Level 3) 2015
Liabilities:
Long-term obligations(a) .................. $2,714,094 $17,870 $— $2,731,964
Derivative financial instruments(b) ........... — 1,173 — 1,173
Deferred compensation(c) ................. 22,336 — — 22,336
(a) Reflected at book value in the consolidated balance sheet as Current portion of long-term
obligations of $101,158 and Long-term obligations of $2,639,427.
(b) Reflected at fair value in the consolidated balance sheet as Accrued expenses and other current
liabilities.
(c) Reflected at fair value in the consolidated balance sheet as Accrued expenses and other current
liabilities of $2,070 and noncurrent Other liabilities of $20,266.
The carrying amounts reflected in the consolidated balance sheets for cash, cash equivalents,
short-term investments, receivables and payables approximate their respective fair values. The Company
does not have any recurring fair value measurements using significant unobservable inputs (Level 3) as
of January 30, 2015.
7. Derivative financial instruments
The Company enters into certain financial instrument positions, all of which are intended to be
used to reduce risk by hedging an underlying economic exposure.
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