AMD 2015 Annual Report Download - page 39

of the necessary licenses on satisfactory terms, if at all. These parties may file lawsuits against us or our
customers seeking damages (potentially up to and including treble damages) or an injunction against the sale of
products that incorporate allegedly infringed intellectual property or against the operation of our business as
presently conducted, which could result in our having to stop the sale of some of our products or to increase the
costs of selling some of our products or which could damage our reputation. The award of damages, including
material royalty payments, or other types of damages, or the entry of an injunction against the manufacture and
sale of some or all of our products could have a material adverse effect on us. We could decide, in the alternative,
to redesign our products or to resort to litigation to challenge such claims. Such challenges could be extremely
expensive and time-consuming regardless of their merit, could cause delays in product release or shipment and/or
could have a material adverse effect on us. We cannot assure you that litigation related to our intellectual
property rights or the intellectual property rights of others can always be avoided or successfully concluded.
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 business is subject to potential tax liabilities.
We are subject to income taxes in the United States, Canada and other foreign jurisdictions. Significant
judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our
business, there are many transactions and calculations where the ultimate tax determination is uncertain.
Although we believe our tax estimates are reasonable, we cannot assure you that the final determination of any
tax audits and litigation will not be materially different from that which is reflected in historical income tax
provisions and accruals. Should additional taxes be assessed as a result of an audit, assessment or litigation, there
could be a material adverse effect on our cash, income tax provision and net income in the period or periods for
which that determination is made.
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 been 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.
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,
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