Family Dollar 2009 Annual Report Download - page 55

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The Company also maintains a $350 million unsecured revolving credit facility expiring on August 24, 2011.
Any borrowings under this credit facility also accrue interest at a variable rate based on short-term market
interest rates. Outstanding standby letters of credit ($202.3 million as of August 29, 2009) reduce the borrowing
capacity of the $350 million credit facility.
There were no borrowings under the credit facilities during fiscal 2009 compared with $736.3 million borrowed
and repaid during fiscal 2008. The credit facilities 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. As of August 29, 2009, the Company was in compliance with all such covenants.
The estimated fair value of the Company’s long-term debt was $266.2 million as of August 29, 2009, and $238.3
million as of August 30, 2008. The fair value was determined based on a discounted cash flow analysis using
rates available to the Company on debt of the same remaining maturities. The fair value was greater than the
carrying value of the debt by $16.2 million as of August 29, 2009, and less than the carrying value of the debt by
$11.7 million as of August 30, 2008.
6. Accrued Liabilities:
Accrued liabilities consisted of the following at the end of fiscal 2009 and fiscal 2008:
(in thousands) August 29, 2009 August 30, 2008
Compensation ........................................... $110,035 $ 78,454
Self-insurance liabilities ................................... 210,609 202,829
Taxes other than income taxes ............................... 72,067 76,146
Deferred rent ............................................ 37,733 39,861
Litigation ............................................... 53,330 51,927
Other(1) ................................................. 46,153 47,603
$529,927 $496,820
(1) Other accrued liabilities consist primarily of store utility accruals, certain store rental accruals,
deferred compensation accruals, and accrued interest.
7. Income Taxes:
The provisions for income taxes in fiscal 2009, fiscal 2008 and fiscal 2007 were as follows:
(in thousands) 2009 2008 2007
Current:
Federal ......................................... $137,600 $111,723 $ 79,100
State ........................................... 17,633 10,033 25,399
155,233 121,756 104,499
Deferred:
Federal ......................................... 4,971 1,555 38,074
State ........................................... (545) 5,378 (3,531)
4,426 6,933 34,543
Total ............................................... $159,659 $128,689 $139,042
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