AMD 2001 Annual Report Download - page 223

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
third party's intellectual property rights. We cannot assure you that all
necessary licenses can be obtained on satisfactory terms, if at all. We could
decide, in the alternative, to resort to litigation to challenge such claims.
Such challenges could be extremely expensive and time-consuming and could have a
material adverse effect on us. We cannot assure you that litigation related to
the intellectual property rights of us and others will always be avoided or
successfully concluded.
Our Inability to Effectively Transition to a New Enterprise Resource Planning
Program Could Have a Material Adverse Effect on Us. We are currently in the
process of transitioning to a new enterprise resource planning program. If we
are unsuccessful in transitioning to this new system in an effective and timely
manner, we could be materially adversely affected.
Failure to Comply with Applicable Environmental Regulations Could Materially
Adversely Affect our Business. Our business involves the use of hazardous
materials. If we fail to comply with governmental regulations related to the
use, storage, handling, discharge or disposal of toxic, volatile or otherwise
hazardous chemicals used in our manufacturing process, we may be subject to
fines, suspension of production, alteration of our manufacturing processes or
cessation of our operations. Such regulations could require us to procure
expensive remediation equipment or to incur other expenses to comply with
environmental regulations. Any failure to control the use of, disposal or
storage of, or adequately restrict the discharge of, hazardous substances could
subject us to future liabilities and could have a material adverse effect on us.
Violations of environmental laws may result in criminal and civil liabilities.
Terrorist Attacks, Such as the Attacks That Occurred in New York and Washington,
DC on September 11, 2001, and Other Acts of Violence or War May Materially
Adversely Affect the Markets in which We Operate, Our Operations and Our
Profitability. Terrorist attacks may negatively affect our operations. These
attacks or armed conflicts may directly impact our physical facilities or those
of our suppliers or customers. Furthermore, these attacks may make travel and
the transportation of our products more difficult and more expensive and
ultimately affect our sales.
Also as a result of terrorism, the United States has entered into an armed
conflict which could have a further impact on our sales, our supply chain, and
our ability to deliver products to our customers. Political and economic
instability in some regions of the world may also result and could negatively
impact our business. The consequences of any of these armed conflicts are
unpredictable, and we may not be able to foresee events that could have an
adverse effect on our business.
More generally, any of these events could cause consumer confidence and spending
to decrease or result in increased volatility in the United States and worldwide
financial markets and
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002