Dollar General 2006 Annual Report Download - page 39

activities of our captive insurance subsidiary. Purchases of long-term investments are related to
the captive insurance subsidiary.
Significant components of our purchases of property and equipment in 2005 included the
following approximate amounts: $102 million for distribution and transportation-related capital
expenditures; $96 million for new stores; $47 million related to the EZstore project; $18 million
for certain fixtures in existing stores; and $15 million for various systems-related capital projects.
During 2005, we opened 734 new stores and relocated or remodeled 82 stores. Distribution and
transportation expenditures in 2005 included costs associated with the construction of our new
DCs in South Carolina and Indiana.
Net sales of short-term investments in 2005 of $34.1 million primarily reflect our
investment activities in tax-exempt auction rate securities. Purchases of long-term investments
are related to our captive insurance subsidiary.
Cash flows used in investing activities of $259.2 million in 2004 were also primarily
related to capital expenditures. Significant components of our purchases of property and
equipment in 2004 included the following approximate amounts: $101 million for distribution
and transportation-related capital expenditures; $82 million for new stores; $26 million for
certain fixtures in existing stores; $26 million for various systems-related capital projects; and
$23 million for coolers in existing stores, which allow the stores to carry refrigerated products.
During 2004, we opened 722 new stores and relocated or remodeled 80 stores. Distribution and
transportation expenditures in 2004 included costs associated with the construction of our new
DC in South Carolina as well as costs associated with the expansion of the Ardmore, Oklahoma
and South Boston, Virginia DCs.
Net sales of short-term investments in 2004 of $25.8 million primarily reflect our
investment activities in tax-exempt auction rate securities.
Capital expenditures during 2007 are projected to be approximately $180 to $200 million.
We anticipate funding 2007 capital requirements with cash flows from operations and the
amended credit facility, if necessary. Significant components of the 2007 capital plan include
leasehold improvements and fixtures and equipment for approximately 300 new stores,
continued investment in our existing store base, plans for remodeling and relocating
approximately 300 stores, and additional investments in our supply chain. We plan to undertake
these expenditures in order to improve our infrastructure and provide support for our anticipated
growth.
Cash flows used in financing activities. Cash flows used in financing activities during
2006 included the repurchase of approximately 4.5 million shares of our common stock at a total
cost of $79.9 million, cash dividends paid of $62.5 million, or $0.20 per share, on our
outstanding common stock, and $14.1 million to reduce our outstanding capital lease and
financing obligations. These uses of cash were partially offset by proceeds from the exercise of
stock options during 2006 of $19.9 million.
During 2005, we repurchased approximately 15.0 million shares of our common stock at
a total cost of $297.6 million, paid cash dividends of $56.2 million, or $0.175 per share, on our
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