Apple 2010 Annual Report Download - page 35

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Table of Contents
Legal and Other Contingencies
As discussed in Part I, Item 3 of this Form 10-K under the heading “Legal Proceedings” and in Note 8 “Commitments and Contingencies”
in
Notes to Consolidated Financial Statements, the Company is subject to various legal proceedings and claims that arise in the ordinary course of
business. In accordance with GAAP, the Company records a liability when it is probable that a loss has been incurred and the amount is
reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be
reasonably estimated. In management’
s opinion, the Company does not have a potential liability related to any current legal proceedings and
claims that would individually or in the aggregate materially adversely affect its financial condition or operating results. However, the outcomes
of legal proceedings and claims brought against the Company are subject to significant uncertainty. Should the Company fail to prevail in any of
these legal matters or should several of these legal matters be resolved against the Company in the same reporting period, the operating results of
a particular reporting period could be materially adversely affected.
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