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LEGAL MATTERS
12 Months Ended
Feb. 01, 2014
LEGAL MATTERS  
LEGAL MATTERS

NOTE 17—LEGAL MATTERS

        The Company is party to a consent decree, effective July 15, 2010, with the United States Environmental Protection Agency ("EPA") that, among other things, required the Company to implement a formal compliance program with respect to certain small gasoline engine merchandise sold by the Company. In the fourth quarter of fiscal 2013, the EPA alleged, in writing, that the Company had violated certain inspection, testing and reporting requirements of the Consent Decree and made an aggregated stipulated penalty demand of $2.3 million as a result thereof. The Company is currently engaged in settlement negotiations with the EPA with respect thereto. The Company has accrued an amount that it believes is sufficient to resolve those violations for which it believes it is liable. If the Company is unable to resolve all of the violations with the EPA through its settlement negotiations, the Company intends to invoke formal dispute resolution procedures with the EPA under the terms of the Consent Decree.

        The Company is also party to various actions and claims arising in the normal course of business. The Company believes that amounts accrued for awards or assessments in connection with all such matters are adequate and that the ultimate resolution of these matters will not have a material adverse effect on the Company's financial position. However, there exists a possibility of loss in excess of the amounts accrued, the amount of which cannot currently be estimated. While the Company does not believe that the amount of such excess loss will be material to the Company's financial position, any such loss could have a material adverse effect on the Company's results of operations in the period(s) during which the underlying matters are resolved.