Abercrombie & Fitch 2013 Annual Report Download - page 20

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20
ITEM 3. LEGAL PROCEEDINGS.
A&F is a defendant in lawsuits and other adversary proceedings arising in the ordinary course of business. Legal costs
incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, and the Company
establishes reserves for the outcome of litigation where it deems appropriate to do so under applicable accounting rules. The
Company’s assessment of the current exposure could change in the event of the discovery of additional facts with respect to
legal matters pending against the Company or determinations by judges, juries, administrative agencies or other finders of fact
that are not in accordance with the Company’s evaluation of claims. Actual liabilities may exceed the amounts reserved, and
there can be no assurance that final resolution of these matters will not have a material adverse effect on the Company’s
financial condition, results of operations or cash flows. The Company has established accruals for certain matters where losses
are deemed probable and reasonably estimable. There are other claims and legal proceedings pending against the Company for
which accruals have not been established.
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