HP 2015 Annual Report Download - page 37

Table of Contents
about us, our clients or our customers, including the potential loss or disclosure of such information or data as a result of fraud, trickery or other forms of
deception, could expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation and potential liability
for us, damage our brand and reputation or otherwise harm our business. We also could lose existing or potential customers or incur significant expenses in
connection with our customers' system failures or any actual or perceived security vulnerabilities in our products and services. In addition, the cost and
operational consequences of implementing further data protection measures could be significant.
Portions of our IT infrastructure also may experience interruptions, delays or cessations of service or produce errors in connection with systems
integration or migration work that takes place from time to time. We may not be successful in implementing new systems and transitioning data, which could
cause business disruptions and be more expensive, time-consuming, disruptive and resource intensive. Such disruptions could adversely impact our ability to
fulfill orders and respond to customer requests and interrupt other processes. Delayed sales, lower margins or lost customers resulting from these disruptions
could reduce our revenue, increase our expenses, damage our reputation and adversely affect our stock price.
Terrorist acts, conflicts, wars and geopolitical uncertainties may seriously harm our business and revenue, costs and expenses and financial condition and
stock price.
Terrorist acts, conflicts or wars (wherever located around the world) may cause damage or disruption to our business, our employees, facilities, partners,
suppliers, distributors, resellers or customers or adversely affect our ability to manage logistics, operate our transportation and communication systems or
conduct certain other critical business operations. The potential for future attacks, the national and international responses to attacks or perceived threats to
national security, and other actual or potential conflicts or wars have created many economic and political uncertainties. In addition, as a major multinational
company with headquarters and significant operations located in the United States, actions against or by the United States may impact our business or
employees. Although it is impossible to predict the occurrences or consequences of any such events, if they occur, they could result in a decrease in demand
for our products, make it difficult or impossible to provide services or deliver products to our customers or to receive components from our suppliers, create
delays and inefficiencies in our supply chain and result in the need to impose employee travel restrictions. We are predominantly uninsured for losses and
interruptions caused by terrorist acts, conflicts and wars.
Our business is subject to various federal, state, local and foreign laws and regulations that could result in costs or other sanctions that adversely affect our
business and results of operations.
We are subject to various federal, state, local and foreign laws and regulations. For example, we are subject to laws and regulations concerning
environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances
and wastes, the clean-up of contaminated sites, the content of our products and the recycling, treatment and disposal of our products, including batteries. In
particular, 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, the energy consumption associated with those products, climate change laws and
regulations, and product take-back legislation. If we were to violate or become liable under environmental laws or if our products become non-compliant
with environmental laws, we could incur substantial costs or face other sanctions, which may include restrictions on our products entering certain
jurisdictions. Our potential exposure includes fines and civil or criminal sanctions, third-party property damage, personal injury claims and clean-up costs.
Further, liability under some environmental laws relating to contaminated sites can be imposed
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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