pg. 5

"As described below, our Global Social Compliance program, which includes, among other things, our factory audit program, our Vendor Code of Conduct, our training efforts, and our grievance mechanisms for vendors, underscores our efforts to address and mitigate these risks with our merchandise vendors, and where appropriate, to take corrective action. We also regularly review factory audits performed, remediation efforts taken, and vendor training attendance, as part of these efforts."

pg. 7

"The factory’s score on the initial audit determines how soon it will be reassessed, according to a risk-based audit cycle we have developed. We will take appropriate steps should we learn that a vendor is failing to meet our standards, including remediation, cancellation of purchase orders, or termination of our business relationship."