AMD 2014 Annual Report Download - page 39

A variety of environmental laws that we are subject to could result in additional costs and liabilities.
Our operations and properties have in the past and continue to be subject to various United States 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. Although our
management systems are designed to maintain compliance, 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, under or emanating from our facilities or other
environmental or natural resource damage. 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.
Certain environmental laws, including the U.S. Comprehensive, Environmental Response, Compensation
and Liability Act of 1980, or the Superfund Act, impose strict or, under certain circumstances, 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 at three Superfund 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 (EU) and China are two among a growing number of jurisdictions that have
enacted restrictions on the use of lead and other materials in electronic products. These regulations affect
semiconductor devices and packaging. As regulations restricting materials in electronic products continue to
increase around the world, there is a risk that the cost, quality and manufacturing yields of products that are
subject to these restrictions, may be less favorable compared to products that are not subject to such restrictions,
or that the transition to compliant products may not meet customer roadmaps, or produce sudden changes in
demand, which may result in excess inventory. A number of jurisdictions including the EU, Australia and China
are developing or have finalized market entry or public procurement regulations for computers and servers based
on ENERGY STAR specifications as well as additional energy consumption limits. There is the potential for
certain of our products being excluded from some of these markets which could materially adversely affect us.
Recent U.S. legislation includes disclosure and reporting requirements for companies who use “conflict”
minerals that originate from the Democratic Republic of Congo or adjoining countries. We will likely incur
additional costs associated with complying with these requirements, such as costs related to determining the
source of any conflict minerals used in our products, auditing the process and reporting to our customers and the
U.S. government. Also, since our supply chain is complex, we may face reputational challenges if we are unable
to sufficiently verify the origins of the subject minerals. Moreover, we are likely to encounter challenges to
satisfy those customers who require that all of the components of our products are certified as “conflict free.” If
we cannot satisfy these customers, they may choose a competitor’s products.
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