AMD 2005 Annual Report Download - page 71

Table of Contents
We are subject to a variety of environmental laws that could result in liabilities.
Our operations and properties are subject to various U.S. and foreign environmental laws and regulations, including those relating to materials used in our
products and manufacturing processes, discharge of pollutants into the environment, the treatment, transport, storage and disposal of solid and hazardous wastes,
and remediation of contamination. These laws and regulations require us to obtain permits for our operations, including the discharge of air pollutants and
wastewater. Our management systems are designed to maintain compliance. However, we cannot assure you that we have been or will be at all times in complete
compliance with such laws, regulations and permits. If we violate or fail to comply with any of them, a range of consequences could result, including fines,
suspension of production, alteration of manufacturing processes, import/export restrictions, sales limitations, criminal and civil liabilities or other sanctions. We
could also be held liable for any and all consequences arising out of exposure to hazardous materials used, stored, released, disposed of by us or located at or
under our facilities or other environmental or natural resource damage.
Certain environmental laws, including the U.S. Comprehensive, Environmental Response, Compensation and Liability Act of 1980, or the Superfund Act,
impose strict, joint and several liability on current and previous owners or operators of real property for the cost of removal or remediation of hazardous
substances and impose liability for damages to natural resources. These laws often impose liability even if the owner or operator did not know of, or was not
responsible for, the release of such hazardous substances. These environmental laws also assess liability on persons who arrange for hazardous substances to be
sent to disposal or treatment facilities when such facilities are found to be contaminated. Such persons can be responsible for cleanup costs even if they never
owned or operated the contaminated facility. We have been named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California.
Although we have not yet been, we could be named a potentially responsible party at other Superfund or contaminated sites in the future. In addition,
contamination that has not yet been identified could exist at our other facilities.
Environmental laws are complex, change frequently and have tended to become more stringent over time. For example, the European Union has enacted in
recent years restrictions on the use of lead, among other chemicals, in electronic products, which affects semiconductor packaging. Other regulatory requirements
potentially affecting our manufacturing processes and the design and marketing of our products are in development throughout the world. While we have
budgeted for foreseeable associated expenditures, we cannot assure you that future environmental legal requirements will not become more stringent or costly in
the future. Therefore, we cannot assure you that our costs of complying with current and future environmental and health and safety laws, and our liabilities
arising from past and future releases of, or exposure to, hazardous substances will not have a material adverse effect on us.
Future litigation proceedings may materially adversely affect us.
From time to time we are a defendant or plaintiff in various legal actions. Litigation can involve complex factual and legal questions and its outcome is
uncertain. Any claim that is successfully asserted against us may cause us to pay substantial damages. In addition, future litigation may result in injunctions
against future product sales. Even if we were to prevail, any litigation could be costly and time-consuming and would divert the attention of our management and
key personnel from our business operations, which could have a material adverse effect on us.
Our worldwide operations could be subject to natural disasters and other business disruptions, which could harm our future revenue and financial
condition and increase our costs and expenses.
Our worldwide operations could be subject to natural disasters and other business disruptions, which could harm our future revenue and financial condition
and increase our costs and expenses. For example, our corporate headquarters are located near major earthquake fault lines in California. Our assembly and test
facilities are located in China, Malaysia and Singapore. In the event of a major earthquake, or other natural or manmade disaster, we could experience loss of life
of our employees, destruction of facilities or business interruptions, any of which could materially adversely affect us.
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Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006