Lowe's 2012 Annual Report Download - page 24

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10
Failure to achieve and maintain a high level of product and service quality could damage our image with customers and
negatively impact our sales, profitability, cash flows and financial condition.
Product and service quality issues could result in a negative impact on customer confidence in Lowe’s and the Company’s
brand image. As a result, Lowe’s reputation as a retailer of high quality products and services, including both national and
Lowe’s private brands, could suffer and impact customer loyalty. Additionally, a decline in product and service quality
could result in product recalls, product liability and warranty claims.
Future litigation or governmental proceedings could result in material adverse consequences, including judgments or
settlements.
We are, and in the future will become, involved in lawsuits, regulatory inquiries, and governmental and other legal
proceedings arising out of the ordinary course of our business. Some of these proceedings may raise difficult and
complicated factual and legal issues and can be subject to uncertainties and complexities. The timing of the final
resolutions to lawsuits, regulatory inquiries, and governmental and other legal proceedings is typically uncertain.
Additionally, the possible outcomes of, or resolutions to, these proceedings could include adverse judgments or
settlements, either of which could require substantial payments. None of the legal proceedings in which we are currently
involved, individually or collectively, is considered material.
Item 1B - Unresolved Staff Comments
None.
Item 2 - Properties
At February 1, 2013, our properties consisted of 1,754 stores in the U.S., Canada and Mexico with a total of approximately
197 million square feet of selling space. Of the total stores operating at February 1, 2013, approximately 89% are owned,
which includes stores on leased land, with the remainder being leased from third parties. We also operate regional
distribution centers and other facilities to support distribution and fulfillment, as well as data centers and various support
offices. Our executive offices are located in Mooresville, North Carolina.
Item 3 - Legal Proceedings
In April 2012, one of the Company’s principal operating subsidiaries, Lowe’s HIW, Inc., received a subpoena from the
District Attorney of the County of Alameda, along with other environmental prosecutorial offices in the state of California,
seeking documents and information relating to the handling, storage and disposal of hazardous waste. The subsidiary is
cooperating fully with the request.
In addition to these matters, we are also a defendant in legal proceedings considered to be in the normal course of business,
none of which, individually or collectively, is considered material.
Item 4 - Mine Safety Disclosures
Not applicable.