AMD 2013 Annual Report Download - page 33

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capabilities of the third-party intellectual property or development tools available to us. If the third-party
intellectual property that we use becomes unavailable, is not available in the time frame needed for our new
products or fails to produce designs that meet customer demands, our business could be materially adversely
affected.
We depend on third-party companies for the design, manufacture and supply of motherboards, BIOS software
and other computer platform components to support our microprocessor and graphics businesses.
We depend on third-party companies for the design, manufacture and supply of motherboards, BIOS
software and other components that our customers utilize to support our microprocessor, GPU and APU
offerings. We also rely on our AIBs to support our GPU and APU businesses. In addition, our microprocessors
are not designed to function with motherboards and chipsets designed to work with Intel microprocessors. If the
designers, manufacturers, AIBs and suppliers of motherboards and other components decrease their support for
our product offerings, our business could be materially adversely affected.
If we lose Microsoft Corporation’s support for our products or other software vendors do not design and
develop software to run on our products, our ability to sell our products could be materially adversely affected.
Our ability to innovate beyond the x86 instruction set controlled by Intel depends partially on Microsoft
designing and developing its operating systems to run on or support our x86-based microprocessor products.
With respect to our graphics products, we depend in part on Microsoft to design and develop its operating system
to run on or support our graphics products. Similarly, the success of our products in the market, such as our APU
products, is dependent on independent software providers designing and developing software to run on our
products. If Microsoft does not continue to design and develop its operating systems so that they work with our
x86 instruction sets or does not continue to develop and maintain their operating systems to support our graphics
products, independent software providers may forego designing their software applications to take advantage of
our innovations and customers may not purchase PCs with our products. In addition, some software drivers sold
with our products are certified by Microsoft. If Microsoft did not certify a driver, or if we otherwise fail to retain
the support of Microsoft or other software vendors, our ability to market our products would be materially
adversely affected.
We may incur future impairments of goodwill.
We perform our annual goodwill impairment analysis as of the first day of the fourth quarter of each
year. Subsequent to our annual goodwill impairment analysis, we monitor for any events or changes in
circumstances, such as significant adverse changes in business climate or operating results, changes in
management’s business strategy, an inability to successfully introduce new products in the marketplace, an
inability to successfully achieve internal forecasts or significant declines in our stock price, which may represent
an indicator of impairment. The occurrence of any of these events may require us to record future goodwill
impairment charges.
Our inability to continue to attract and retain qualified personnel may hinder our product development
programs.
Much of our future success depends upon the continued service of numerous qualified engineering, marketing,
sales and executive personnel. If we are not able to continue to attract, train and retain qualified personnel necessary
for our business, the progress of our product development programs could be hindered, and we could be materially
adversely affected. To help attract, retain and motivate qualified personnel, we use share-based incentive awards
such as employee stock options and non-vested share units (restricted stock units). If the value of such stock awards
does not appreciate as measured by the performance of the price of our common stock, or if our share-based
compensation otherwise ceases to be viewed as a valuable benefit, our ability to attract, retain and motivate
personnel could be weakened, which could harm our results of operations. In addition, our recent and any future
restructuring plans may adversely impact our ability to attract and retain key employees.
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