Abercrombie & Fitch 2009 Annual Report Download - page 18

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replacing and modifying these systems, including inaccurate system information and system disruptions. The
Company believes it is taking appropriate action to mitigate the risks through testing, training, and staging
implementation, as well as securing appropriate commercial contracts with third-party vendors supplying
such replacement technologies. Information technology system disruptions and inaccurate system informa-
tion, if not anticipated and appropriately mitigated, could have a material adverse effect on the Company’s
financial condition or results of operations. Additionally, there is no assurance that a successfully imple-
mented system will deliver value to the Company.
The Company Could Suffer if the Company’s Computer Systems are Disrupted or Cease to Operate
Effectively.
The Company relies heavily on its computer systems to record and process transactions and manage and
operate the Company’s operations. Given the significant number of transactions that are completed annually,
it is vital to maintain constant operation of the computer hardware and software systems. Despite efforts to
prevent such an occurrence, the Company’s systems are vulnerable from time-to-time to damage or
interruption from computer viruses, power outages, third party intrusions and other technical malfunctions.
If the Company’s systems are damaged or fail to function properly, the Company may have to make monetary
investments to repair or replace the systems and the Company could endure delays in its operations. Any
material interruption could have a material adverse effect on the Company’s business or results of operations.
Changes in the Regulatory or Compliance Landscape Could Adversely Affect the Company’s
Business or Results of Operations.
Laws and regulations at the state, federal and international levels frequently change and the ultimate cost
of compliance cannot be precisely estimated. Changes in regulations, the imposition of additional regulations,
or the enactment of any new legislation including those related to health care, taxes, environmental issues,
trade, product safety and employment labor, could adversely affect the Company’s business or results of
operations.
The Company’s Operations may be Effected by Greenhouse Emissions and Climate Change.
The Company’s operations may be effected by regulatory changes related to climate change and
greenhouse gas emissions. The Company is uncertain how the United States and international economies will
be affected by potential legislation and public reactions. As a result, the affect this could have on the
Company’s operations is currently unknown.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES.
The Company’s headquarters and support functions occupy 474 acres, consisting of the home office,
distribution and shipping facilities centralized on a campus-like setting in New Albany, Ohio and an
additional small distribution and shipping facility located in the Columbus, Ohio area, all of which are
owned by the Company. Additionally, the Company leases small facilities to house its design and sourcing
support centers in Hong Kong, New York City and Los Angeles, California, as well as offices in the
United Kingdom and Switzerland for its European operations.
17