Dollar Tree 2008 Annual Report Download - page 42

tions. The Court ordered notice to be sent to female
individuals employed by the Company as a store man-
ager between February 1, 2006 and January 30, 2009
(3,320 in number) to participate as a member of a
potential class. A second notice was sent to 215 female
store managers in California employed during the
period March 1, 2006 through February 27, 2009. The
opt in period ends April 23, 2009, so the Company
does not know at this date the number of persons who
will elect to opt in. Discovery is now ongoing. The
Company expects that the Court will consider a
motion to decertify the collective action and other
defensive motions at a future date. The case has not
been set for trial.
In May and June of 2008, 29 present or former
female store managers filed claims with the Norfolk,
Virginia office of the EEOC alleging employment dis-
crimination pursuant to Title VII of the Civil Rights
Act on the grounds that women store managers
throughout the Company are paid less than their male
counterparts. Eventually the EEOC issued Right to
Sue letters to the complaining parties. All are repre-
sented by the attorneys for the plaintiffs in the exist-
ing pay discrimination case, who, following the letters,
sought to amend the existing Complaint to include
the Title VII charges. The Court presently has that
matter under consideration.
The Company will vigorously defend itself in
these lawsuits. The Company cannot give assurance,
however, that one or more of these lawsuits will not
have a material adverse effect on its results of opera-
tions for the period in which they are resolved.
40
DOLLAR TREE, INC. • 2008 ANNUAL REPORT
Notes to Consolidated Financial Statements continued
to decertify the collective action and other defensive
motions late this summer. If the Court eventually cer-
tifies a class, the case has been scheduled for trial in
January 2010.
In April 2007, the Company was served with a
lawsuit filed in federal court in the state of California
by one present and one former store manager. They
claim they should have been classified as non-exempt
employees under both the California Labor Code and
the Fair Labor Standards Act. They filed the case as a
class action on behalf of California-based store man-
agers employed by the Company for the four years
prior to the filing of the suit. The Company was there-
after served with a second suit in a California state
court which alleges essentially the same claims as
those contained in the federal action and which like-
wise seeks class certification of all California store
managers. The Company has removed the case to the
same federal court as the first suit, answered it and the
two cases have been consolidated. The plaintiffs’
motion to seek class certification should be decided
this spring or summer. No trial date has been scheduled.
In July 2008, the Company was served with a
lawsuit filed in federal court in the state of Alabama
by one present and one former store manager, both
females, alleging that they and other female store
managers similarly situated were deprived of their
rights under the Equal Pay Act, 29 U.S.C. 206(d) in
that they were paid less than male store managers for
performing jobs of equal skill and effort. They seek an
unspecified amount of monetary damages, back pay,
injunctive and other relief. The Company has
answered the Complaint denying the plaintiffs’ allega-
NOTE 5 – LONG-TERM DEBT
Long-term debt at January 31, 2009 and February 2, 2008 consists of the following:
January 31, February 2,
(in millions) 2009 2008
$550.0 million Unsecured Credit Agreement, interest payable monthly at
LIBOR, plus 0.50%, which was 1.21% at January 31, 2009, principal payable
upon expiration of the facility in February 2013 $250.0 —
$450.0 million Unsecured Revolving Credit Facility, interest payable monthly at
LIBOR, plus 0.475%, principal payable upon expiration of the facility in
March 2009, amount refinanced in 2008 —$250.0
Demand Revenue Bonds, interest payable monthly at a variable rate which was
1.50% at January 31, 2009, principal payable on demand, maturing June 2018 17.6 18.5
Total-term debt $267.6 $268.8
Maturities of long-term debt are as follows: 2009 - $17.6 million and 2013 - $250.0 million.