AMD 2008 Annual Report Download - page 44

third parties in the Asia-Pacific region and inventory related to those products is stored there, particularly in
Taiwan. We also have international sales operations and as part of our business strategy, we are continuing to
seek expansion of product sales in high growth markets. Our international sales as a percentage of our total
consolidated revenue were 88 percent in 2008.
The political and economic risks associated with our operations in foreign countries include, without
limitation:
• expropriation;
• changes in a specific country’s or region’s political or economic conditions;
• changes in tax laws, trade protection measures and import or export licensing requirements;
• difficulties in protecting our intellectual property;
• difficulties in achieving headcount reductions;
• changes in foreign currency exchange rates;
• restrictions on transfers of funds and other assets of our subsidiaries between jurisdictions;
• changes in freight and interest rates;
• disruption in air transportation between the United States and our overseas facilities; and
• loss or modification of exemptions for taxes and tariffs.
Any conflict or uncertainty in the countries in which we operate, including public health or safety, natural
disasters or general economic factors, could have a material adverse effect on our business. Any of the above
risks, should they occur, could result in an increase in the cost of components, production delays, general
business interruptions, delays from difficulties in obtaining export licenses for certain technology, tariffs and
other barriers and restrictions, potentially longer payment cycles, potentially increased taxes, restrictions on the
repatriation of funds and the burdens of complying with a variety of foreign laws, any of which could ultimately
have a material adverse effect on us.
Worldwide economic and political conditions may adversely affect demand for our products.
Worldwide economic conditions have adversely affected demand for our products. Also, the occurrence and
threat of terrorist attacks and the consequences of sustained military action in the Middle East have in the past,
and may in the future, adversely affect demand for our products. Terrorist attacks may negatively affect our
operations, directly or indirectly, and such attacks or related 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, which could materially adversely affect us.
The United States has been and may continue to be involved in armed conflicts that could have a further
impact on our sales and our supply chain. Political and economic instability in some regions of the world may
also result and could negatively impact our business. The consequences of armed conflicts are unpredictable and
we may not be able to foresee events that could have a material adverse effect on us.
More generally, any of these events could cause consumer confidence and spending to decrease or result in
increased volatility in the United States economy and worldwide financial markets. Any of these occurrences
could have a material adverse effect on us and also may result in volatility of the market price for our securities.
Unfavorable currency exchange rate fluctuations could continue to adversely affect us.
We have costs, assets and liabilities that are denominated in foreign currencies, primarily the Euro and the
Canadian dollar. As a result of our acquisition of ATI, some of our expenses and debt are denominated in
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