Dollar Tree 2012 Annual Report Download - page 42
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Please find page 42 of the 2012 Dollar Tree annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Standards Act and received overtime compensation. e
Courtpreliminarilyallowednationwide(exceptCalifornia)
certication.eCompany’smotiontodecertifythecollec-
tiveactionwasdismissedwithoutprejudicein2010.e
CompanyledanothermotiontodecertifyonFebruary
29,2012.atmotionwasgrantedonNovember2,2012.
eindividualclaimsofthefournamedplaintiswere
consolidatedandproceededtotrialonFebruary22,2013.
OnMarch1,ajuryreturnedfourverdictsinfavorofthe
Company. On that day the Court entered Final Judgment
infavoroftheCompanyagainstallfourplaintisand
dismissedthecaseswithprejudice.eCompanyantici-
patesposttrialmotionswillbeledbytheplaintisasking
thattheCourtsetasidetheFinalJudgmentandthejury
verdicts.eindividualclaimsofthe261opt-inplaintis
weredismissedintheNovember2Orderwithoutpreju-
dice.Seventy-veofthoseopt-indecertiedplaintishave
recentlyledindividualclaimsineightdierentfederal
courtsthroughouttheU.S.Noneofthesecaseshaveasyet
proceeded beyond the pleadings stage so that discovery has
not begun nor have any cases been set for trial.
InApril2011,aformerassistantstoremanager,on
behalf of himself and those similarly situated, instituted
a class action in a California state court primarily alleging
a failure by the Company to provide meal breaks, to
compensate for all hours worked, and to pay overtime
compensation. e Company removed the case to federal
courtwhichdeniedplaintis’motionforremandofthe
case to state court. Discovery in this case is on going.
ere is no trial date.
InJune2011,Winn-DixieStores,Inc.andvarious
of its affiliates instituted suit in federal court in Florida
allegingthattheCompany,inapproximately48shop-
pingcentersinthestateofFloridaandveotherstates
whereDollarTreeandWinn-Dixiearebothtenants,
is selling goods and products in Dollar Tree stores in
violationofanexclusiverightofWinn-Dixietoselland
distribute such items. It sought both monetary damages
andinjunctiverelief.Atapproximatelythesametime,
Winn-DixiealsosuedDollarGeneral,Inc.andBigLots,
Inc. making essentially the same allegations against them
and seeking the same relief. e Court consolidated
the three cases and they proceeded to trial, without a
jury,inMayof2012.OnAugust10,2012,theCourt
issued its Findings of Fact and Conclusions of Law. e
rulingdeniedWinn-Dixie’sclaimformonetarydamages,
eithercompensatoryorpunitive,and,oftheoriginal48
DollarTreestoresatissue,grantedplainti ’srequestfor
injunctivereliefwithrespecttojustonestore.Anal
Orderincorporatingthesendingsandconclusionswas
enteredandWinn-DixiehasappealedtotheU.S.Court
of Appeals for the 11th Circuit.
Notes to Consolidated Financial Statements
Related Parties
eCompanyleasedpropertiesforveofitsstoresfrom
partnerships owned by related parties. e total rental
paymentsrelatedtotheseleaseswere$0.4million,$0.5
millionand$0.5millionfortheyearsendedFebruary2,
2013,January28,2012,andJanuary29,2011,respectively.
Total future commitments under the four remaining
relatedpartyleasesare$1.5million.
Technology Assets
e Company has commitments totaling approximately
$10.8milliontopurchaseprimarilystoretechnology
assetsforitsstoresduring2013.
Telecommunication Contracts
e Company has contracted for telecommunication
serviceswithcontractsexpiringin2017.etotalamount
ofthesecommitmentsisapproximately$26.9million.
Letters of Credit
e Company is a party to two Letter of Credit
Reimbursement and Security Agreements providing
$110.0millionand$100.0million,respectivelyforletters
of credit. Letters of credit under both of these agree-
ments are generally issued for the routine purchase of
importedmerchandiseandapproximately$147.0million
wascommittedtotheselettersofcreditatFebruary2,
2013.AsdiscussedinNote5,theCompanyalsohas
$150.0millionofavailablelettersofcreditincludedin
the$750.0millionUnsecuredCreditAgreement(the
Agreement)enteredintoin2012.AsofFebruary2,
2013,therewerenolettersofcreditcommittedunder
the Agreement.
eCompanyalsohasapproximately$12.9million
in stand-by letters of credit that serve as collateral for
its large-deductible insurance programs and expire in
scal2014.eCompany’sDemandRevenueBondsare
alsosupportedbya$14.5millionletterofcreditthatis
renewable annually.
Surety Bonds
e Company has issued various surety bonds that
primarily serve as collateral for utility payments at the
Company’sstores.etotalamountofthecommitment
isapproximately$3.1million,whichiscommitted
throughvariousdatesthroughscal2014.
Contingencies
In2006,aformerstoremanagerledacollectiveaction
against the Company in Alabama federal court. She claims
that she and other store managers should have been
classiedasnon-exemptemployeesundertheFairLabor
40 Dollar Tree, Inc.