Family Dollar 2011 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 2011 and fiscal
2010:
(in thousands) August 27, 2011 August 28, 2010
Buildings and building improvements ......................... $ 572,039 $ 537,647
Furniture, fixtures and equipment ............................ 1,460,116 1,291,282
Transportation equipment .................................. 87,274 80,161
Leasehold improvements ................................... 398,803 357,768
Construction in progress ................................... 61,152 19,831
2,579,384 2,286,689
Less: accumulated depreciation and amortization ................ 1,391,806 1,250,881
1,187,578 1,035,808
Land ................................................... 93,011 76,158
$1,280,589 $1,111,966
Depreciation expense was $179.5 million, $171.2 million and $159.8 million for fiscal 2011, fiscal 2010 and
fiscal 2009, respectively.
5. Current and Long-Term Debt:
Current and long-term debt consisted of the following at the end of fiscal 2011 and fiscal 2010:
(in thousands) August 27, 2011 August 28, 2010
5.24% Notes due September 27, 2015 ......................... $ 81,000 $ 81,000
5.41% Notes due September 27, 2015 ......................... 169,000 169,000
5.00% Notes due February 1, 2021 ........................... 298,570 —
548,570 250,000
Less: current portion ...................................... 16,200 —
Long-term portion ........................................ $532,370 $250,000
On January 28, 2011, the Company issued $300 million of 5.00% unsecured senior notes due February 1, 2021
(the “2021 Notes”), through a public offering. The Company’s proceeds were approximately $298.5 million, net
of an issuance discount of $1.5 million. In addition, the Company incurred issuance costs of approximately $3.3
million. Both the discount and issuance costs are being amortized to interest expense over the term of the 2021
Notes. Interest on the 2021 Notes is payable semi-annually in arrears on the 1st day of February and August of
each year, commencing on August 1, 2011. The 2021 Notes rank pari passu in right of payment with the
Company’s other unsecured senior indebtedness and will be senior in right of payment to any subordinated
indebtedness. The Company may redeem the 2021 Notes in whole at any time or in part from time to time, at the
option of the Company, subject to a make-whole premium. In addition, upon the occurrence of certain change of
control triggering events, the Company may be required to repurchase the 2021 Notes, at a price equal to 101%
of their principal amount, plus accrued and unpaid interest to the date of repurchase.
On September 27, 2005, the Company obtained $250 million through a private placement of unsecured senior
notes due September 27, 2015 (the “2015 Notes”), to a group of institutional accredited investors. The 2015
Notes were issued in two tranches at par and rank pari passu in right of payment with the Company’s 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 on September 27, 2011, and bears interest at a rate of 5.24% per annum from the
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