AMD 2014 Annual Report Download - page 36

our customers could be materially adversely affected. Also, we cannot guarantee that our contracts with these
third-party providers will be renewed, in which case we would have to transition these functions in- house or
secure new providers, which could have a material adverse effect on our business if the transition is not executed
appropriately.
Acquisitions could disrupt our business, harm our financial condition and operating results or dilute, or
adversely affect the price of, our common stock.
Our success will depend, in part, on our ability to expand our product offerings and grow our business in
response to changing technologies, customer demands and competitive pressures. In some circumstances, we
may pursue growth through the acquisition of complementary businesses, solutions or technologies rather than
through internal development. The identification of suitable acquisition candidates can be difficult, time-
consuming and costly, and we may not be able to successfully complete identified acquisitions. Moreover, if
such acquisitions require us to seek additional debt or equity financing, we may not be able to obtain such
financing on terms favorable to us or at all. Even if we successfully complete an acquisition, we may not be able
to assimilate and integrate effectively or efficiently the acquired business, technologies, solutions, assets,
personnel or operations, particularly if key personnel of the acquired company decide not to work for us.
Acquisitions may also involve the entry into geographic or business markets in which we have little or no prior
experience. Consequently, we may not achieve anticipated benefits of the acquisitions which could harm our
operating results. In addition, to complete an acquisition, we may issue equity securities, which would dilute our
stockholders’ ownership and could adversely affect the price of our common stock, as well as incur debt, assume
contingent liabilities or have amortization expenses and write-downs of acquired assets, which could adversely
affect our results of operations. Acquisitions may also reduce our cash available for operations and other uses,
which could harm our business.
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 81% in 2014. 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.
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