AMD 2013 Annual Report Download - page 39

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Our worldwide operations are subject to political, legal and economic risks and natural disasters, which could
have a material adverse effect on us.
We maintain operations around the world, including in the United States, Canada, Europe and Asia. We rely
on third-party wafer foundries in Europe and Asia. Nearly all product assembly and final testing of our products
is performed at manufacturing facilities, operated by us as well as third-party manufacturing facilities, in China,
Malaysia and Taiwan. We also have international sales operations. International sales, as a percent of net
revenue, were 77% in the fourth quarter of 2013 and 85% for the year ended 2013. We expect that international
sales will continue to be a significant portion of total sales in the foreseeable future.
The political, legal and economic risks associated with our operations in foreign countries include, without
limitation:
• expropriation;
• changes in a specific country’s or region’s political or economic conditions;
• changes in tax laws, trade protection measures and import or export licensing requirements;
• difficulties in protecting our intellectual property;
• difficulties in managing staffing and exposure to different employment practices and labor laws;
• changes in foreign currency exchange rates;
• restrictions on transfers of funds and other assets of our subsidiaries between jurisdictions;
• changes in freight and interest rates;
• disruption in air transportation between the United States and our overseas facilities;
• loss or modification of exemptions for taxes and tariffs; and
• compliance with U.S. laws and regulations related to international operations, including export control
and economic sanctions laws and regulations and the Foreign Corrupt Practices Act.
In addition, our worldwide operations (or those of our business partners) could be subject to natural
disasters such as earthquakes, tsunamis, flooding, typhoons and volcanic eruptions that disrupt manufacturing or
other operations. For example, our Sunnyvale operations are located near major earthquake fault lines in
California. Any conflict or uncertainty in the countries in which we operate, including public health issues (for
example, an outbreak of a contagious disease such as Avian Influenza), safety issues, natural disasters, fire,
disruptions of service from utilities, nuclear power plant accidents or general economic or political factors, could
have a material adverse effect on our business. Any of the above risks, should they occur, could result in an
increase in the cost of components, production delays, general business interruptions, delays from difficulties in
obtaining export licenses for certain technology, tariffs and other barriers and restrictions, longer payment cycles,
increased taxes, restrictions on the repatriation of funds and the burdens of complying with a variety of foreign
laws, any of which could ultimately have a material adverse effect on our business.
Worldwide political conditions may adversely affect demand for our products.
Worldwide political conditions may create uncertainties that could adversely affect our business. The United
States has been and may continue to be involved in armed conflicts that could have a further impact on our sales
and our supply chain. The consequences of armed conflict, political instability or civil or military unrest are
unpredictable, and we may not be able to foresee events that could have a material adverse effect on us. Terrorist
attacks or other hostile acts may negatively affect our operations, or adversely affect demand for our products,
and such attacks or related armed conflicts may impact our physical facilities or those of our suppliers or
customers. Furthermore, these attacks or hostile acts may make travel and the transportation of our products more
difficult and more expensive, which could materially adversely affect us. Any of these events could cause
consumer spending to decrease or result in increased volatility in the United States economy and worldwide
financial markets.
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