Motorola 2010 Annual Report Download - page 30

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These laws impact our products and negatively affects our competitive ability to manufacture and sell products.
We expect these trends to continue. In addition, we anticipate increased demand to meet voluntary criteria related
to reduction or elimination of certain constituents from products, increasing energy efficiency, and providing
additional accessibility.
We may be unable to obtain a sufficient supply of components and parts that are free of minerals mined from the
Democratic Republic of Congo and adjoining countries, which could result in a shortage of such components and
parts or reputational damages if we are unable to certify that our products are free of such minerals.
The Dodd-Frank Wall Street Reform and Consumer Protection Act included disclosure requirements regarding
the use of “conflict” minerals mined from the Democratic Republic of Congo and adjoining countries (“DRC”) and
procedures regarding a manufacturer’s efforts to prevent the sourcing of such “conflict” minerals. While final rules
implementing these requirements are not expected from the SEC until April 2011, the implementation of these
requirements may limit the pool of suppliers who can provide us DRC Conflict Free components and parts, and we
cannot assure you that we will be able to obtain products in sufficient quantities that meet the DRC Conflict Free
designation as proposed by the requirements. Also, since our supply chain is complex, we may face reputational
challenges with our customers, other stockholders and the activist community if we are unable to sufficiently verify
the origins for the defined “conflict” metals used in our products.
Changes in government policies and laws, funding or economic conditions may negatively impact our financial
results.
Our results may be affected by changes in trade, monetary and fiscal policies, laws and regulations, or other
activities of U.S. and non-U.S. governments, agencies and similar organizations. In particular, the financial results of
our government business may be negatively impacted by any decreases in the level of government funding, including
availability of grants, for public safety projects. Our results may also be affected by social and economic conditions,
which impact our operations, including in emerging markets in Asia, India, Latin America and Eastern Europe, and
in markets subject to ongoing political hostilities and war, including the Middle East.
We rely on complex information technology systems and networks to operate our business. Any significant system
or network disruption could have a negative impact on our operations, sales and operating results.
We rely on the efficient and uninterrupted operation of complex information technology systems and networks,
some of which are within the Company and some are outsourced. All information technology systems are
potentially vulnerable to damage or interruption from a variety of sources, including but not limited to computer
viruses, security breach, energy blackouts, natural disasters, terrorism, war and telecommunication failures. There
also may be system or network disruptions if new or upgraded business management systems are defective or are
not installed properly. We have implemented various measures to manage our risks related to system and network
disruptions, but a system failure or security breach could negatively impact our operations and financial results. In
addition, we may incur additional costs to remedy the damages caused by these disruptions or security breaches.
Our share price has been and may continue to be volatile.
Our share price has been volatile due, in part, to generally volatile securities markets, the volatility in the
telecommunications and technology companies’ securities markets in particular and the Distribution of Motorola
Mobility. Factors other than our financial results that may affect our share price include, but are not limited to,
market expectations of our performance, spending plans of our customers and the level of perceived growth in the
industries in which we participate.
We have a large cost overhang resulting from the Distribution of Motorola Mobility and must take additional cost-
reduction actions. Our ability to complete these actions and the impact of such actions on our business beyond
those already taken may be limited by a variety of factors. The cost-reduction actions, in turn, may expose us to
additional production risk and have a negative impact on our sales, profitability and ability to attract and retain
employees.
The Distribution of Motorola Mobility has resulted in costs that were formerly allocated to Motorola Mobility
being absorbed by Motorola Solutions. The majority of the overhang costs have been or are planned to be
eliminated from Motorola Solutions through cost reduction activities.