Dollar Tree 2012 Annual Report Download - page 42

Standards Act and received overtime compensation. e
Courtpreliminarilyallowednationwide(exceptCalifornia)
certication.eCompany’smotiontodecertifythecollec-
tiveactionwasdismissedwithoutprejudicein2010.e
CompanyledanothermotiontodecertifyonFebruary
29,2012.atmotionwasgrantedonNovember2,2012.
eindividualclaimsofthefournamedplaintiswere
consolidatedandproceededtotrialonFebruary22,2013.
OnMarch1,ajuryreturnedfourverdictsinfavorofthe
Company. On that day the Court entered Final Judgment
infavoroftheCompanyagainstallfourplaintisand
dismissedthecaseswithprejudice.eCompanyantici-
patesposttrialmotionswillbeledbytheplaintisasking
thattheCourtsetasidetheFinalJudgmentandthejury
verdicts.eindividualclaimsofthe261opt-inplaintis
weredismissedintheNovember2Orderwithoutpreju-
dice.Seventy-veofthoseopt-indecertiedplaintishave
recentlyledindividualclaimsineightdierentfederal
courtsthroughouttheU.S.Noneofthesecaseshaveasyet
proceeded beyond the pleadings stage so that discovery has
not begun nor have any cases been set for trial.
InApril2011,aformerassistantstoremanager,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
courtwhichdeniedplaintis’motionforremandofthe
case to state court. Discovery in this case is on going.
ere is no trial date.
InJune2011,Winn-DixieStores,Inc.andvarious
of its affiliates instituted suit in federal court in Florida
allegingthattheCompany,inapproximately48shop-
pingcentersinthestateofFloridaandveotherstates
whereDollarTreeandWinn-Dixiearebothtenants,
is selling goods and products in Dollar Tree stores in
violationofanexclusiverightofWinn-Dixietoselland
distribute such items. It sought both monetary damages
andinjunctiverelief.Atapproximatelythesametime,
Winn-DixiealsosuedDollarGeneral,Inc.andBigLots,
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,inMayof2012.OnAugust10,2012,theCourt
issued its Findings of Fact and Conclusions of Law. e
rulingdeniedWinn-Dixie’sclaimformonetarydamages,
eithercompensatoryorpunitive,and,oftheoriginal48
DollarTreestoresatissue,grantedplainti ’srequestfor
injunctivereliefwithrespecttojustonestore.Anal
Orderincorporatingthesendingsandconclusionswas
enteredandWinn-DixiehasappealedtotheU.S.Court
of Appeals for the 11th Circuit.
Notes to Consolidated Financial Statements
Related Parties
eCompanyleasedpropertiesforveofitsstoresfrom
partnerships owned by related parties. e total rental
paymentsrelatedtotheseleaseswere$0.4million,$0.5
millionand$0.5millionfortheyearsendedFebruary2,
2013,January28,2012,andJanuary29,2011,respectively.
Total future commitments under the four remaining
relatedpartyleasesare$1.5million.
Technology Assets
e Company has commitments totaling approximately
$10.8milliontopurchaseprimarilystoretechnology
assetsforitsstoresduring2013.
Telecommunication Contracts
e Company has contracted for telecommunication
serviceswithcontractsexpiringin2017.etotalamount
ofthesecommitmentsisapproximately$26.9million.
Letters of Credit
e Company is a party to two Letter of Credit
Reimbursement and Security Agreements providing
$110.0millionand$100.0million,respectivelyforletters
of credit. Letters of credit under both of these agree-
ments are generally issued for the routine purchase of
importedmerchandiseandapproximately$147.0million
wascommittedtotheselettersofcreditatFebruary2,
2013.AsdiscussedinNote5,theCompanyalsohas
$150.0millionofavailablelettersofcreditincludedin
the$750.0millionUnsecuredCreditAgreement(the
Agreement)enteredintoin2012.AsofFebruary2,
2013,therewerenolettersofcreditcommittedunder
the Agreement.
eCompanyalsohasapproximately$12.9million
in stand-by letters of credit that serve as collateral for
its large-deductible insurance programs and expire in
scal2014.eCompany’sDemandRevenueBondsare
alsosupportedbya$14.5millionletterofcreditthatis
renewable annually.
Surety Bonds
e Company has issued various surety bonds that
primarily serve as collateral for utility payments at the
Company’sstores.etotalamountofthecommitment
isapproximately$3.1million,whichiscommitted
throughvariousdatesthroughscal2014.
Contingencies
In2006,aformerstoremanagerledacollectiveaction
against the Company in Alabama federal court. She claims
that she and other store managers should have been
classiedasnon-exemptemployeesundertheFairLabor
40 Dollar Tree, Inc.