Dollar General 2009 Annual Report Download - page 88

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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Merger (Continued)
The purchase price allocation as of January 29, 2010 and January 30, 2009 also included
approximately $1.4 billion of other intangible assets, as follows:
As of January 29, 2010
Estimated Accumulated
(In thousands) Useful Life Amount Amortization Net
Leasehold interests ..................... 2 to 17.5 years $ 184,168 $100,793 $ 83,375
Internally developed software ............. 3 years 12,300 10,592 1,708
196,468 111,385 85,083
Trade names and trademarks ............. Indefinite 1,199,200 — 1,199,200
$1,395,668 $111,385 $1,284,283
As of January 30, 2009
Estimated Accumulated
(In thousands) Useful Life Amount Amortization Net
Leasehold interests ..................... 2 to 17.5 years $ 184,570 $64,020 $ 120,550
Internally developed software ............. 3 years 12,300 6,492 5,808
196,870 70,512 126,358
Trade names and trademarks ............. Indefinite 1,199,200 — 1,199,200
$1,396,070 $70,512 $1,325,558
The Company recorded amortization expense related to amortizable intangible assets for 2009,
2008 and the 2007 Successor period of $41.3 million, $45.0 million and $26.1 million, respectively,
($37.2 million, $40.9 million and $23.7 million, respectively, of which is included in rent expense).
Expected future cash flows associated with the Company’s intangible assets are not expected to be
materially affected by the Company’s intent or ability to renew or extend the arrangements.
For intangible assets subject to amortization, the estimated aggregate amortization expense for
each of the five succeeding fiscal years is as follows: 2010—$27.2 million, 2011—$20.9 million, 2012—
$17.0 million, 2013—$12.0 million, and 2014—$5.8 million.
Fees and expenses related to the Merger totaled $102.6 million, principally consisting of investment
banking fees, legal fees and stock compensation ($39.4 million as further discussed in Note 11), and are
reflected in the 2007 results of operations. Capitalized debt issuance costs as of the Merger date of
$87.4 million for Merger-related financing were reflected in other long-term assets in the consolidated
balance sheet.
The following represents the unaudited pro forma results of the Company’s consolidated
operations as if the Merger had occurred on February 3, 2007, after giving effect to certain
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