Dollar General 2012 Annual Report Download - page 145

10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Basis of presentation and accounting policies (Continued)
Accounting standards
In July 2012, the Financial Accounting Standards Board (FASB) issued new accounting guidance
relating to impairment testing for indefinite-lived intangible assets, as discussed in greater detail above
under ‘‘Goodwill and other intangible assets.’’ This guidance is effective for annual and interim
impairment tests for fiscal years beginning after September 15, 2012 and early adoption is permitted.
The Company adopted this guidance in the third quarter of 2012 and it did not have a material impact
on its consolidated financial statements.
In June 2011, the FASB issued an accounting standards update which revises the manner in which
entities present comprehensive income in their financial statements. The new standard removes the
presentation options in current guidance and requires entities to report components of comprehensive
income in either a continuous statement of comprehensive income or separate but consecutive
statements. The Company adopted this guidance in 2012 in the form of separate but consecutive
statements, and it did not have a material effect on its consolidated financial statements.
Reclassifications
Certain reclassifications of the 2011 and 2010 amounts have been made to conform to the 2012
presentation.
2. Common stock transactions
On August 29, 2012, the Company’s Board of Directors authorized a $500 million common stock
repurchase program, of which $143.6 million remained available for repurchase as of February 1, 2013.
The repurchase authorization has no expiration date and allows repurchases from time to time in the
open market or in privately negotiated transactions, which could include repurchases from Buck
Holdings, L.P., a Delaware limited partnership controlled by KKR and Goldman Sachs and Co., or
other related parties if appropriate. The timing and number of shares purchased will depend on a
variety of factors, such as price, market conditions, compliance with the covenants and restrictions
under our debt agreements and other factors. Repurchases under the program may be funded from
available cash or borrowings under the Company’s senior secured asset-based revolving credit facility,
which is discussed in further detail in Note 6.
On November 30, 2011, the Company’s Board of Directors authorized a $500 million common
stock repurchase program, which was completed during 2012 as discussed below. The repurchase
authorization had terms similar to the August 2012 authorization.
During the year ended February 1, 2013, the Company repurchased approximately 7.1 million
shares under the November 2011 authorization at a total cost of $315.0 million, including approximately
6.8 million shares purchased from Buck Holdings, L.P. for an aggregate purchase price of
$300.0 million, and approximately 7.3 million shares under the August 2012 authorization at a total cost
of $356.4 million, including approximately 4.9 million shares purchased from Buck Holdings, L.P. for an
aggregate purchase price of $250.0 million. During the year ended February 3, 2012, the Company
repurchased approximately 4.9 million shares under the November 2011 authorization from Buck
Holdings, L.P. at a total cost of $185.0 million.
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