Home Depot 2014 Annual Report Download - page 17

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12
speculation, government regulations and periodic delays in delivery. Rapid and significant changes in commodity prices may
affect the demand for our products, our sales and our profit margins.
Changes in accounting standards and subjective assumptions, estimates and judgments by management related to
complex accounting matters could significantly affect our financial results or financial condition.
Generally accepted accounting principles and related accounting pronouncements, implementation guidelines and
interpretations with regard to a wide range of matters that are relevant to our business, such as revenue recognition, asset
impairment, impairment of goodwill and other intangible assets, inventories, lease obligations, self-insurance, tax matters and
litigation, are highly complex and involve many subjective assumptions, estimates and judgments. Changes in these rules or
their interpretation or changes in underlying assumptions, estimates or judgments could significantly change our reported or
expected financial performance or financial condition.
We are involved in a number of legal proceedings, and while we cannot predict the outcomes of those proceedings and
other contingencies with certainty, some of these outcomes may adversely affect our operations or increase our costs.
In addition to the matters discussed above with respect to the Data Breach, we are involved in a number of legal proceedings,
including government inquiries and investigations, and consumer, employment, tort and other litigation that arise from time
to time in the ordinary course of business. Litigation is inherently unpredictable, and the outcome of some of these
proceedings and other contingencies could require us to take or refrain from taking actions which could adversely affect our
operations or could result in excessive verdicts. Additionally, defending against these lawsuits and proceedings may involve
significant expense and diversion of management’s attention and resources from other matters.
Item 1B. Unresolved Staff Comments.
Not applicable.