Dollar General 2014 Annual Report Download - page 156

10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Commitments and contingencies (Continued)
and the Company filed a motion for summary judgment regarding the stores located outside of Florida.
The court has not yet ruled on either motion.
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 plaintiffs’ claim for damages. If plaintiffs were to obtain further appellate
review, and the Company were 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 2014, 2013 and 2012, the Company expensed approximately
$13.7 million, $13.0 million and $11.9 million, respectively, for matching contributions.
The Company also has a nonqualified supplemental retirement plan (‘‘SERP’’) and compensation
deferral plan (‘‘CDP’’), known as the Dollar General Corporation CDP/SERP Plan, for a select group
of management and other key employees. The Company incurred compensation expense for these plans
of approximately $0.8 million, $1.2 million and $1.4 million in 2014, 2013 and 2012, respectively.
The CDP/SERP Plan assets are invested in accounts selected by the Company’s Compensation
Committee or its delegate. These investments are classified as trading securities and the associated
deferred compensation liability is reflected in the consolidated balance sheets as further discussed in
Note 6.
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