Dollar General 2009 Annual Report Download - page 100

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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Derivative financial instruments (Continued)
derivatives not designated in hedging relationships are recorded directly in earnings. As of January 29,
2010, the Company had no outstanding commodity hedges.
The table below presents the fair value of the Company’s derivative financial instruments as well as
their classification on the consolidated balance sheet as of January 29, 2010:
Tabular Disclosure of Fair Values of Derivative Instruments
Asset Derivatives Liability Derivatives
As of January 29, 2010 As of January 29, 2010(In thousands)
Balance Sheet Balance Sheet
Classification Fair Value Classification Fair Value
Derivatives designated as hedging instruments
Interest rate swaps ....................... Other liabilities $57,058
The tables below present the pre-tax effect of the Company’s derivative financial instruments on
the consolidated statement of operations (including OCI) for the year ended January 29, 2010:
Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statement of Operations
For the year ended January 29, 2010
Location of Gain or Amount of (Gain)
(In thousands) Amount of Loss Recognized in or Loss Recognized
Amount of (Gain) or Loss Income on in Income on
(Gain) or Loss Reclassified from Derivative Derivative
Recognized in Location of Gain or Accumulated (Ineffective Portion (Ineffective Portion
Derivatives in OCI on Loss Reclassified OCI into and Amount and Amount
Cash Flow Derivative from Accumulated Income Excluded from Excluded from
Hedging (Effective OCI into Income (Effective Effectiveness Effectiveness
Relationships Portion) (Effective Portion) Portion) Testing) Testing)
Other (income)
Interest rate swaps ........ $42,324 Interest expense $50,140 expense $618
Amount of
Location of Gain or (Gain) or Loss
Loss Recognized in Recognized in
Income on Income on
Derivatives Not Designated as Hedging Instruments Derivative Derivative
Commodity hedges ............................... Other (income) expense $(341)
Credit-risk-related contingent features
The Company has agreements with all of its interest rate swap counterparties that contain a
provision providing that the Company could be declared in default on its derivative obligations if
repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on
such indebtedness.
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