Dollar General 2015 Annual Report Download - page 143

10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Commitments and contingencies (Continued)
The Company’s responsive pleadings are due in the McCormick matter on March 21, 2016; in the
Fruhling matter on April 4, 2016; in the Meyer matter on April 6, 2016; in the Sheehy matter on April 7,
2016; in the Solis matter on April 8, 2016; in the Foppe matter and Gooel matter on April 15, 2016; and
in the Harvey, Oren and Vega matters on April 22, 2016.
The Company believes that the labeling, marketing and sale of its private-label motor oil complies
with applicable federal and state requirements and is not misleading. The Company further believes
that these matters are not appropriate for class or similar treatment. The Company intends to
vigorously defend these actions; however, at this time, it is not possible to predict whether any of these
cases will be permitted to proceed as a class or the size of any putative class. Likewise, at this time, it
is not possible to estimate the value of the claims asserted, and no assurances can be given that the
Company will be successful in its defense of these actions on the merits or otherwise. For these
reasons, the Company is unable to estimate the potential loss or range of loss in these matters;
however if the Company is not successful in its defense efforts, the resolution of any of these actions
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 consolidated 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 2015, 2014 and 2013, the Company expensed approximately
$15.0 million, $13.7 million and $13.0 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 $1.1 million, $0.8 million and $1.2 million in 2015, 2014 and 2013, respectively.
The CDP/SERP Plan assets are invested in accounts selected by the Company’s Compensation
Committee or its delegate, and the associated deferred compensation liability is reflected in the
consolidated balance sheets as further discussed in Note 6.
69