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&lt;p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"&gt;&lt;font color="#F20017" size="2"&gt;&lt;b&gt;18. Commitments and Contingencies &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Purchase obligations, which include all legally binding contracts, such as firm commitments for inventory purchases, merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/license commitments and service contracts, were approximately $2,016&amp;nbsp;million and $570&amp;nbsp;million at January&amp;nbsp;30, 2010 and January&amp;nbsp;31, 2009, respectively. We issue inventory purchase orders, which represent authorizations to purchase that are cancelable by their terms. We do not consider purchase orders to be firm inventory commitments. We also issue trade letters of credit in the ordinary course of business, which are not firm commitments as they are conditional on the purchase order not being cancelled. If we choose to cancel a purchase order, we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation under certain circumstances. &lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Trade letters of credit totaled $1,484&amp;nbsp;million and $1,359&amp;nbsp;million at January&amp;nbsp;30, 2010 and January&amp;nbsp;31, 2009, respectively, a portion of which are reflected in accounts payable. Standby letters of credit, relating primarily to retained risk on our insurance claims, totaled $72&amp;nbsp;million and $64&amp;nbsp;million at January&amp;nbsp;30, 2010 and January&amp;nbsp;31, 2009, respectively. &lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;We are exposed to claims and litigation arising in the ordinary course of business and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not believe that any of the currently identified claims or litigation matters will have a material adverse impact on our results of operations, cash flows or financial condition. &lt;/font&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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