Abercrombie & Fitch 2014 Annual Report Download - page 18

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18
ITEM 3. LEGAL PROCEEDINGS.
The Company 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.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.