HP 2014 Annual Report Download - page 22

For a discussion of risks attendant to these competitive factors, see ‘‘Risk Factors—Competitive
pressures could harm our revenue, gross margin and prospects,’’ in Item 1A, which is incorporated
herein by reference.
Environment
Our operations are subject to regulation under various federal, state, local and foreign laws
concerning the environment, including laws addressing the discharge of pollutants into the air and
water, the management and disposal of hazardous substances and wastes, and the cleanup of
contaminated sites. We could incur substantial costs, including cleanup costs, fines and civil or criminal
sanctions, and third-party damage or personal injury claims, if we were to violate or become liable
under environmental laws.
Many of our products are subject to various federal, state, local and foreign laws governing
chemical substances in products and their safe use, including laws regulating the manufacture and
distribution of chemical substances and laws restricting the presence of certain substances in electronics
products. Some of our products also are, or may in the future be, subject to requirements applicable to
their energy consumption. In addition, we face increasing complexity in our product design and
procurement operations as we adjust to new and future requirements relating to the chemical and
materials composition of our products, their safe use, and their energy efficiency, including
requirements relating to climate change. We are also subject to legislation in an increasing number of
jurisdictions that makes producers of electrical goods, including computers and printers, financially
responsible for specified collection, recycling, treatment and disposal of past and future covered
products (sometimes referred to as ‘‘product take-back legislation’’). In the event our products become
non-compliant with these laws, our products could be restricted from entering certain jurisdictions and
we could face other sanctions, including fines.
Our operations and ultimately our products are expected to become increasingly subject to federal,
state, local and foreign laws, regulations and international treaties relating to climate change. As these
laws, regulations, treaties and similar initiatives and programs are adopted and implemented throughout
the world, we will be required to comply or potentially face market access limitations or other
sanctions, including fines. However, we believe that technology will be fundamental to finding solutions
to achieve compliance with and manage those requirements, and we are collaborating with industry,
business groups and governments to find and promote ways that HP technology can be used to address
climate change and to facilitate compliance with related laws, regulations and treaties.
We are committed to maintaining compliance with all environmental laws applicable to our
operations, products and services and to reducing our environmental impact across all aspects of our
business. We meet this commitment with a comprehensive environmental, health and safety policy,
strict environmental management of our operations and worldwide environmental programs and
services.
A liability for environmental remediation and other environmental costs is accrued when we
consider it probable that a liability has been incurred and the amount of loss can be reasonably
estimated. Environmental costs and accruals are presently not material to our operations, cash flows or
financial position. Although there is no assurance that existing or future environmental laws applicable
to our operations or products will not have a material adverse effect on our operations, cash flows or
financial condition, we do not currently anticipate material capital expenditures for environmental
control facilities.
For a discussion of risks attendant to these environmental factors, see ‘‘Risk Factors—Unforeseen
environmental costs could adversely affect our business and results of operations,’’ in Item 1A, which is
incorporated herein by reference. In addition, for a discussion of our environmental contingencies see
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