Home Depot 2008 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2008 Home Depot 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.

Page out of 66

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66

The Company has reached a tentative settlement, subject to court approval, with the plaintiffs in five current lawsuits in
the Superior Court of the County of Los Angeles in California, containing multiple class-action allegations that the
Company failed to provide meal breaks. The complaints were filed by current and former hourly associates from the first
quarter of 2004 through the fourth quarter of 2008. Relief sought included unspecified monetary damages, injunctive relief
or both. Class or collective-action certification was not addressed in any of these cases. In the fourth quarter of fiscal
2008, the Company established a reserve for this settlement, which is recorded in our Consolidated Balance Sheets in
Other Accrued Expenses.
From the third quarter of 2004 through the fourth quarter of 2008, current and former associates have filed three pending
lawsuits in the District Court of New Jersey and the Superior Court of the County of Los Angeles, containing multiple
class-action allegations that the Company misclassified their positions under the Fair Labor Standards Act and that they
are entitled to overtime, or otherwise that they were not paid for work performed. The complaints generally seek
unspecified monetary damages, injunctive relief or both. Final class or collective-action certification has yet to be
addressed in most of these cases. The Company cannot reasonably estimate the possible loss which may arise from these
lawsuits. These matters, if decided adversely to or settled by the Company, individually or in the aggregate, may have a
material adverse effect on its consolidated financial condition or results of operations. The Company is vigorously
defending itself against these actions.
In July 2005, the Company received a grand jury subpoena from the United States Attorney’s Office in Los Angeles,
California, seeking documents and information relating to the Company’s handling, storage and disposal of hazardous
waste. The Company is cooperating fully with the United States Attorney’s Office. Although the Company cannot predict
the outcome of this proceeding, it does not expect any such outcome to have a material adverse effect on its consolidated
financial condition or results of operations.
On September 26, 2008, the Company received an Administrative Order and Notice of Civil Administrative Penalty
Assessment from the State of New Jersey Department of Environmental Protection (“DEP”). The Order and Notice seeks
a civil penalty for alleged violations of recordkeeping requirements pertaining to the use of generators as determined by
the DEP. The Company is currently in settlement discussions with the DEP regarding this matter. Although the Company
cannot predict the outcome of this proceeding, it does not expect any such outcome to have a material adverse effect on
its consolidated financial condition or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders.
Not applicable.
11