X- I/A Table of Contents FIRST DATA CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 8: Commitments and Contingencies The Company is involved in various legal proceedings. Accruals have been made with respect to these matters, where appropriate. which are reflected in the Company's unaudited consolidated financial statements. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company. The matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in liability material to the Company's financial condition and/or results of operations. Legal There are asserted claims against the Company where an unfavorable outcome is considered to be reasonably passible. These claims can generally be categorized in the following areas: (1) patent infringement which results from claims that the Company is using technolog that has been patented by another party; (2) merchant customer matters often associated with alleged In oussing errors or disclosure issues and claims that one of the subsidiaries of the Company has violated a federal or state requirement regarding credit reporting or collection in connection with its check verification guarantee, and collection activities; and (3) other matters which may include issues such as employment. The Company's estimates of the possible ranges of losses in excess of any amounts accrued arc $0 to $50 million for patent infringement, $0 to $15 million for merchant customer matters, and SO to $40 million for other matters, resulting in a total estimated range of possible losses of $0 to $105 million for all of the matters described above. The estimated range of reasonably possible losses is based on information currently available and involves elements of judgment and significant uncertainties. As additional informati