The company estimates that the accelerated vesting of options effective February 3, will reduce non-cash compensation expense that would have been recognized over the next four years by approximately $26-30 million (pre-tax). Compensation expense to be recorded in fiscal 2006 in accordance with SFAS No.123R relating to the accelerated vesting of options awarded between August 2, 2005 and January 24, 2006 is not expected to be material.
The company expects the additional compensation expense to be recorded in the fourth quarter of fiscal 2005 resulting from the accelerated vestings to decrease earnings by an amount not to exceed $0.01 per share.
Additional details of the option acceleration can be found in Dollar General's Current Report on Form 8-K filed today with the Securities and Exchange Commission.
Dollar General is a Fortune 500(R) discount retailer with 7,928 neighborhood stores as of December 30, 2005.
Dollar General Stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices.
Dollar General Corporation
marketing@alchempro.com
