DSW 2013 Annual Report Download - page 19

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Table of Contents
 
Guarantee of Union Square lease. RVI guaranteed Filene’s Basement’s obligations for the Union Square location when RVI owned Filene’s Basement. In
February 2012, the landlord at the Union Square location brought a lawsuit against Merger Sub in the Supreme Court of the State of New York ("the Court")
seeking payment under the guarantee. A third party has entered into a lease for this location, but the landlord has asserted that DSW is responsible for rent and
certain costs while the space was unoccupied. In April 2013, the Court denied the landlord's motion for summary judgment. The landlord appealed the court's
denial of summary judgment. Oral arguments for the appeal were held in February 2014 . We believe that the guarantee may not be enforceable and/or that the
amount of liability under the guarantee may be limited. We will continue to monitor our potential liability regarding this lease obligation. The expected range of
loss is from zero to $7 million.
Other legal proceedings. Other than the proceeding noted above, we are involved in various legal proceedings that are incidental to the conduct of our
business. We estimate the range of liability related to pending litigation where the amount of the range of loss can be estimated. We record our best estimate of a
loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss, we record the most likely estimated liability
related to the claim. Although it is not possible to predict with certainty the eventual outcome of any litigation, in the opinion of management, the amount of any
potential liability with respect to these proceedings will not be material to our results of operations or financial condition.
 
Not Applicable.
15
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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