Family Dollar 2009 Annual Report Download - page 54

4. Property and Equipment:
Property and equipment is recorded at cost and consisted of the following at the end of fiscal 2009 and fiscal
2008:
(in thousands) August 29, 2009 August 30, 2008
Buildings and building improvements ......................... $ 515,344 $ 509,793
Furniture, fixtures and equipment ............................ 1,170,099 1,071,971
Transportation equipment .................................. 77,216 77,485
Leasehold improvements ................................... 344,466 341,061
Construction in progress ................................... 14,980 20,534
2,122,105 2,020,844
Less: accumulated depreciation and amortization ................ 1,133,672 1,017,188
988,433 1,003,656
Land ................................................... 68,016 68,227
$1,056,449 $1,071,883
5. Current and Long-Term Debt:
Current and long-term debt consisted of the following at the end of fiscal 2009 and fiscal 2008:
(in thousands) August 29, 2009 August 30, 2008
5.24% Notes ............................................. $ 81,000 $ 81,000
5.41% Notes ............................................. 169,000 169,000
250,000 250,000
Less: current portion ...................................... — —
Long-term portion ........................................ $250,000 $250,000
On September 27, 2005, the Company obtained $250 million through a private placement of unsecured Senior
Notes (the “Notes”) to a group of institutional accredited investors. The Notes were issued in two tranches at par
and rank pari passu in right of payment with our other unsecured senior indebtedness. The first tranche has an
aggregate principal amount of $169 million, is payable in a single installment on September 27, 2015, and bears
interest at a rate of 5.41% per annum from the date of issuance. The second tranche has an aggregate principal
amount of $81 million, matures on September 27, 2015, with amortization commencing in the sixth year, and
bears interest at a rate of 5.24% per annum from the date of issuance. The second tranche has a required principal
payment of $16.2 million on September 27, 2011, and on each September 27 thereafter to and including
September 27, 2015. Interest on the Notes is payable semi-annually in arrears on the 27th day of March and
September of each year. The sale of the Notes was effected in transactions not requiring registration under the
Securities Act of 1933, as amended. The Notes contain certain restrictive financial covenants, which include a
consolidated debt to consolidated capitalization ratio, a fixed charge coverage ratio, and a priority debt to
consolidated net worth ratio. At the end of fiscal 2009, the Company was in compliance with all such covenants.
On December 18, 2008, the Company entered into an unsecured revolving credit facility with a syndicate of
lenders for short-term borrowings of up to $250 million. The credit facility replaced the Company’s $250 million
unsecured revolving credit facility that was scheduled to mature on January 29, 2009. The credit facility has an
initial term of 364 days and includes two one-year extensions that require lender consent. The credit facility also
includes a one year term-out option that does not require lender consent. Any borrowings under the credit facility
accrue interest at a variable rate based on short-term market interest rates.
46