Home Depot 2008 Annual Report Download - page 54

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12. COMMITMENTS AND CONTINGENCIES
At February 1, 2009, the Company was contingently liable for approximately $695 million under outstanding letters of
credit and open accounts issued for certain business transactions, including insurance programs, trade contracts and
construction contracts. The Company’s letters of credit are primarily performance-based and are not based on changes in
variable components, a liability or an equity security of the other party.
The Company is a defendant in numerous cases containing class-action allegations in which the plaintiffs are current and
former hourly associates who allege that the Company failed to provide work breaks. The complaints generally seek
unspecified monetary damages, injunctive relief or both. Class or collective-action certification has yet to be addressed in
most of these cases. The Company has reached a tentative settlement with the plaintiffs in certain of these cases, subject
to court approval. The reserve recorded by the Company for these cases is not material to the consolidated financial
statements. The Company cannot reasonably estimate the possible loss which may arise from the remainder of these
lawsuits. These matters, if decided adversely to or settled by the Company, individually or in the aggregate, may result in
a liability material to the Company’s consolidated financial condition or results of operations. The Company is vigorously
defending itself against these actions.
13. QUARTERLY FINANCIAL DATA (UNAUDITED)
The following is a summary of the quarterly consolidated results of operations from continuing operations for the fiscal
years ended February 1, 2009 and February 3, 2008 (dollars in millions, except per share data):
Net Sales Gross Profit
Earnings (Loss)
from
Continuing
Operations
Basic
Earnings per
Share from
Continuing
Operations
Diluted
Earnings per
Share from
Continuing
Operations
Fiscal Year Ended February 1, 2009:
First Quarter $17,907 $ 6,072 $ 356 $0.21 $0.21
Second Quarter 20,990 6,964 1,202 0.72 0.71
Third Quarter 17,784 5,994 756 0.45 0.45
Fourth Quarter 14,607 4,960 (2) 0.00 0.00
Fiscal Year $71,288 $23,990 $2,312 $1.37 $1.37
Fiscal Year Ended February 3, 2008:
First Quarter $18,545 $ 6,263 $ 947 $0.48 $0.48
Second Quarter 22,184 7,341 1,521 0.78 0.77
Third Quarter 18,961 6,339 1,071 0.59 0.59
Fourth Quarter 17,659 6,054 671 0.40 0.40
Fiscal Year $77,349 $25,997 $4,210 $2.28 $2.27
Note: The quarterly data may not sum to fiscal year totals.
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