Notes to Consolidated Financial Statements
    
Note G: Provision for Litigation Expense and Other Legal Proceedings

During 2000, the company finalized a settlement agreement, with no admission of wrongdoing, to resolve a class action complaint alleging store managers and assistant managers in California are incorrectly classified as exempt from state overtime laws. The company recorded a non-recurring pre-tax charge of $9.0 million in 1999 when a preliminary settlement was reached in this matter.

The company is party to various other legal proceedings arising from normal business activities. In the opinion of management, resolution of these matters will not have a material adverse effect on the company's financial condition or results of operations.