Abercrombie & Fitch 2015 Annual Report Download - page 18

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Table of Contents
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 losses are deemed probable and reasonably estimable. 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. As of January 30, 2016, the Company had an accrual of approximately $19 million for certain
legal contingencies. In addition, there are certain claims and legal proceedings pending against the Company for which accruals
have not been established. 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.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.