Dollar Tree 2010 Annual Report Download - page 43

Notes to Consolidated Financial Statements
NOTE 5—LONG-TERM DEBT
Long-term debt at January 29, 2011 and January 30, 2010 consists of the following:
(in millions) January 29, 2011 January 30, 2010
$550.0 million Unsecured Credit Agreement, interest
payable monthly at LIBOR, plus 0.50%, which was
0.76% at January 29, 2011, principal payable upon
expiration of the facility in February 2013 $ 250.0 $ 250.0
Demand Revenue Bonds, interest payable monthly at
a variable rate which was 0.30% at January 29, 2011,
principal payable on demand, maturing June 2018 16.5 17.5
Total long-term debt $ 266.5 $ 267.5
Less current portion 16.5 17.5
Long-term debt, excluding current portion $ 250.0 $ 250.0
Maturities of long-term debt are as follows: 2011 – $16.5 million and 2013 – $250.0 million.
Unsecured Credit Agreement
In 2008, the Company entered into the Agreement
which provides for a $300.0 million revolving line
of credit, including up to $150.0 million in available
letters of credit, and a $250.0 million term loan. The
interest rate on the facility is based, at the Company’s
option, on a LIBOR rate, plus a margin, or an alternate
base rate, plus a margin. The revolving line of credit
also bears a facilities fee, calculated as a percentage,
as defi ned, of the amount available under the line of
credit, payable quarterly. The term loan is due and
a new trial date will be established. It is anticipated
the case will go to trial in calendar year 2011. The
Company is vigorously defending itself in this matter.
In 2008, the Company was sued under the Equal
Pay Act in Alabama federal court by two female store
managers alleging that they and other female store
managers were paid less than male store managers.
Among other things, they seek monetary damages and
back pay. The Court ordered that notice be sent to
potential plaintiffs and there are now approximately 363
opt-in plaintiffs. The Company expects that the Court
will rule upon a motion by the Company to decertify
the collective action later in 2011. In October 2009,
34 plaintiffs, most of whom are opt-in plaintiffs in the
Alabama action, fi led a new class action Complaint
in a federal court in Virginia, alleging gender pay
and promotion discrimination under Title VII. On
March 11, 2010, the case was dismissed with prejudice.
Plaintiffs then fi led a motion requesting the Court to
alter, amend and vacate its dismissal Order which the
trial Court denied. Plaintiffs have fi led an appeal to the
U.S. Court of Appeals for the Fourth Circuit. It is
anticipated the Court will hand down a decision in 2011.
In 2010, two former assistant store managers fi led
a collective action against the Company in a Florida
federal court. Their amended claim is that they were
required to work off the clock without compensa-
tion in violation of the Fair Labor Standards Act.
An additional 22 party plaintiffs have joined the suit.
The Company’s motion to transfer venue to the U.S.
District Court for the Eastern District of Virginia was
recently overruled without prejudice pending future
case developments. There is no trial date. The Company
will continue to vigorously defend itself in this matter.
The Company does not believe that any of these
matters will, individually or in the aggregate, have
a material adverse effect on its business or fi nancial
condition. 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.
payable in full at the fi ve year maturity date of the
Agreement. The Agreement also bears an administra-
tive fee payable annually. The Agreement, among other
things, requires the maintenance of certain specifi ed
fi nancial ratios, restricts the payment of certain distri-
butions and prohibits the incurrence of certain new
indebtedness. As of January 29, 2011, the Company
had the $250.0 million term loan outstanding under
the Agreement and no amounts outstanding under the
$300.0 million revolving line of credit.
DOLLAR TREE, INC. ♦ 2010 Annual Report 41