Financial Analysis

"7. Commitments and contingencies Legal proceedings From time to time, the Company is a party to various legal matters in the ordinary course of its business, including actions by employees, consumers, suppliers, government agencies, or others. The Company has recorded accruals with respect to these matters, where appropriate, which are reflected in the Companys consolidated financial statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. On November 27, 2023, and November 30, 2023, respectively, the following putative shareholder class action lawsuits were filed in the United States District Court for the Middle District of Tennessee in which the plaintiffs allege that during the putative class periods noted below, the Company and certain of its current and former officers violated the federal securities laws by misrepresenting the impact of alleged store labor, inventory, pricing and other practices on the Companys financial results and prospects: Washtenaw County Employees Retirement System v. Dollar General Corporation, et al. (Case No. 3:23-cv-01250) (putative class period of May 28, 2020 to August 30, 2023) ( Washtenaw County ); Robert J. Edmonds v. Dollar General Corporation, et al. (Case No. 3:23-cv-01259) (putative class period of February 23, 2023 to August 31, 2023) ( Edmonds ) (collectively, the Shareholder Securities Litigation ). The plaintiffs seek compensatory damages, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

5. Current and long-term obligations Current and long-term obligations consist of the following: May 1, January 30, (In thousands) 2026 2026 Revolving Facility $ $ Unsecured commercial paper notes 4.125% Senior Notes due May 1, 2028 (net of discount of $114 and $128) 499,886 499,872 5.200% Senior Notes due July 5, 2028 (net of discount of $66 and $73) 499,934 499,927 3.500% Senior Notes due April 3, 2030 (net of discount of $291 and $309) 967,387 968,370 5.000% Senior Notes due November 1, 2032 (net of discount of $1,690 and $1,744) 698,310 698,256 5.450% Senior Notes due July 5, 2033 (net of discount of $1,229 and $1,264) 998,771 998,736 4.125% Senior Notes due April 3, 2050 (net of discount of $4,440 and $4,467) 495,560 495,533 5.500% Senior Notes due November 1, 2052 (net of discount of $279 and $280) 299,721 299,720 Other 144,528 148,666 Debt issuance costs, net (27,689) (28,798) $ 4,576,408 $ 4,580,282 Less: current portion (13,302) (14,401) Long-term obligations $ 4,563,106 $ 4,565,881 Revolving Facility On September 3, 2024, the Company entered into an amended and restated credit agreement which provides for a $2.375 billion unsecured five-year revolving credit facility (the Revolving Facility) and allows for a subfacility for letters of credit of up to $100 million, of which $70 million is currently committed. The Revolving Facility is scheduled to mature on September 3, 2029. Borrowings under the Revolving Facility bear interest at a rate equal to an applicable inter …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

6. Assets and liabilities measured at fair value Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entitys own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The Company does not have any fair value measurements categorized within Level 3 as of May 1, 2026. The following table presents the Companys liabilities required to be measured at fair value as of May 1, 2026, aggregated by the level in the fair value hierarchy within which those measurements are classified. Quoted Prices in Active Markets Significant for Identical Other Significant Total Fair Assets and Observable Unobservable Value at Liabilities Inputs Inputs May 1, (In thousands) (Level 1) (Level 2) (Level 3) 2026 Liabilities: Current and long-term obligations (a) $ 4,332,783 $ 144,528 $ $ 4,477,311 Deferred compensation (b) 54,911 54,911 (a) Included in the consolidated balance sheet at book va …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

3. Income taxes Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Companys consolidated financial statements or income tax returns. Income tax reserves are determined using the methodology established by accounting standards for income taxes which require companies to assess each income tax position taken using the following two-step approach. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. As of May 1, 2026, the total reserves for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $10.8 million, $2.2 million and $0.8 million, respectively, for a total of $13.8 million. The uncertain tax liability is reflected in noncurrent other liabilities in the consolidated balance sheet. The Companys reserve for uncertain tax positions is expected to be reduced by $3.0 million in the coming twelve months resulting from expiring statutes of limitations or settlements. As of May 1, 2026, approximately $10.8 million of the reserve fo …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

4. Leases As of May 1, 2026, the Companys primary leasing activities were real estate leases for most of its retail store locations and certain of its distribution facilities. Substantially all of the Companys leases are classified as operating leases, and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. Finance lease assets are included in net property and equipment, and finance lease liabilities are included in long-term obligations, in the consolidated balance sheets. At May 1, 2026, the weighted-average remaining lease term for the Companys operating leases was 9.1 years, and the weighted average discount rate for such leases was 4.7%. Operating lease costs are reflected as selling, general and administrative costs in the consolidated statements of income. For the 13-week periods ended May 1, 2026 and May 2, 2025, such costs were $508.1 million and $487.9 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities of $519.1 million and $494.7 million, respectively, were reflected in cash flows from operating activities in the consolidated statements of cash flows for the 13-week periods ended May 1, 2026 and May 2, 2025. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

8. Segment reporting The Company manages its business on the basis of one reportable operating segment. As of May 1, 2026, the Companys retail store operations were primarily located within the United States. Certain product sourcing and other operations are located outside the United States, which collectively are not material with regard to assets, results of operations or otherwise to the consolidated financial statements. The following net sales data is presented in accordance with accounting standards related to disclosures about segments of an enterprise. 13 Weeks Ended May 1, May 2, (in thousands) 2026 2025 Classes of similar products: Consumables $ 8,892,468 $ 8,636,680 Seasonal 1,084,343 1,022,943 Home products 522,978 507,176 Apparel 287,176 269,180 Net sales $ 10,786,965 $ 10,435,979 The Companys Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The measure of profit or loss utilized by the CODM in assessing segment performance and allocating resources is net income as presented on the Companys consolidated statements of income. The measure of segment assets is reported on the balance sheet as total consolidated assets. Net income is used to evaluate income generated from the use of segment assets which aids in the determination of the allocation of Company resources. Net income is also utilized to monitor budget versus actual results. The following is a reconciliation of segment revenue and significant segment expenses to net income, the measur …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing