Nike 2013 Annual Report Download - page 39

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PART II
Other Contingencies
In the ordinary course of business, we are involved in legal proceedings
regarding contractual and employment relationships, product liability claims,
trademark rights, and a variety of other matters. We record contingent
liabilities resulting from claims against us, including related legal costs, when a
loss is assessed to be probable and the amount of the loss is reasonably
estimable. Assessing probability of loss and estimating probable losses
requires analysis of multiple factors, including in some cases judgments about
the potential actions of third-party claimants and courts. Recorded contingent
liabilities are based on the best information available and actual losses in any
future period are inherently uncertain. If future adjustments to estimated
probable future losses or actual losses exceed our recorded liability for such
claims, we would record additional charges as other (income) expense, net
during the period in which the actual loss or change in estimate occurred. In
addition to contingent liabilities recorded for probable losses, we disclose
contingent liabilities when there is a reasonable possibility that the ultimate
loss will materially exceed the recorded liability. While we cannot predict the
outcome of pending legal matters with certainty, we do not believe any
currently identified claim, proceeding or litigation, either individually or in
aggregate, will have a material impact on our results of operations, financial
position or cash flows.
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