DuPont 2007 Annual Report Download - page 11

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Item 1A. Risk Factors, continued
Economic factors, including inflation and fluctuations in currency exchange rates, interest rates and
commodity prices could affect the company’s financial results.
The company is exposed to fluctuations in currency exchange rates, interest rates and commodity prices. Because
the company has significant international operations, there are a large number of currency transactions that result
from international sales, purchases, investments and borrowings. The company actively manages currency
exposures that are associated with monetary asset positions, committed currency purchases and sales and
other assets and liabilities created in the normal course of business. Failure to successfully manage these risks
could have an adverse impact on the company’s financial position, results of operations and cash flows.
Business disruptions could seriously impact the company’s future revenue and financial condition and
increase costs and expenses.
Business disruptions, including supply disruptions, increasing costs for energy, temporary plant and/or power
outages and information technology system and network disruptions, could seriously harm the company’s
operations as well as the operations of its customers and suppliers. Although it is impossible to predict the
occurrences or consequences of any such events, they could result in reduced demand for the company’s products,
make it difficult or impossible for the company to deliver products to its customers or to receive raw materials from
suppliers, and create delays and inefficiencies in the supply chain. The company actively manages the risks within its
control that could cause business disruptions to mitigate any potential impact from business disruptions regardless
of cause including acts of terrorism or war, and natural disasters. Despite these efforts, the impact from business
disruptions could significantly increase the cost of doing business or otherwise adversely impact the company’s
financial performance.
Inability to protect and enforce the company’s intellectual property rights could adversely affect the
company’s financial results.
Intellectual property rights are important to the company’s business. The company endeavors to protect its
intellectual property rights in jurisdictions in which its products are produced or used and in jurisdictions into
which its products are imported. However, the company may be unable to obtain protection for its intellectual
property in key jurisdictions. Additionally, the company has designed and implemented internal controls to restrict
access to and distribution of its intellectual property, including confidential information and trade secrets. Despite
these precautions, it is possible that unauthorized parties may access and use such property. When
misappropriation is discovered, the company reports such situations to the appropriate governmental authorities
for investigation and takes measures to mitigate any potential impact.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
9
Part I