AMD 2015 Annual Report Download - page 8

fulfilling its contractual obligations; the agreements governing AMD’s notes and the Secured Revolving Line of
Credit impose restrictions on AMD that may adversely affect its ability to operate its business; the completion
and impact of the 2015 Restructuring Plan, its transformation initiatives and any future restructuring actions
could adversely affect it; the markets in which AMD’s products are sold are highly competitive; uncertainties
involving the ordering and shipment of AMD’s products could materially adversely affect it; AMD’s receipt of
revenue from its semi-custom SoC products is dependent upon its technology being designed into third-party
products and the success of those products; the demand for AMD’s products depends in part on the market
conditions in the industries into which they are sold. Fluctuations in demand for AMD’s products or a market
decline in any of these industries could have a material adverse effect on its results of operations; AMD’s ability
to design and introduce new products in a timely manner is dependent upon third-party intellectual property;
AMD depends on third-party companies for the design, manufacture and supply of motherboards and other
computer platform components to support its business; if AMD loses Microsoft Corporation’s support for its
products or other software vendors do not design and develop software to run on AMD’s products, its ability to
sell its products could be materially adversely affected; AMD’s reliance on third-party distributors and AIB
partners subjects it to certain risks; AMD’s inability to continue to attract and retain qualified personnel may
hinder its product development programs; in the event of a change of control, AMD may not be able to
repurchase its outstanding debt as required by the applicable indentures and its Secured Revolving Line of
Credit, which would result in a default under the indentures and its Secured Revolving Line of Credit; the
semiconductor industry is highly cyclical and has experienced severe downturns that have materially adversely
affected, and may continue to materially adversely affect its business in the future; acquisitions, divestitures and/
or joint ventures could disrupt its business, harm its financial condition and operating results or dilute, or
adversely affect the price of its common stock; AMD’s business is dependent upon the proper functioning of its
internal business processes and information systems and modification or interruption of such systems may
disrupt its business, processes and internal controls; data breaches and cyber-attacks could compromise AMD’s
intellectual property or other sensitive information, be costly to remediate and cause significant damage to its
business and reputation; AMD’s operating results are subject to quarterly and seasonal sales patterns; if
essential equipment, materials or manufacturing processes are not available to manufacture its products, AMD
could be materially adversely affected; if AMD’s products are not compatible with some or all industry-standard
software and hardware, it could be materially adversely affected; costs related to defective products could have a
material adverse effect on AMD; if AMD fails to maintain the efficiency of its supply chain as it responds to
changes in customer demand for its products, its business could be materially adversely affected; AMD
outsources to third parties certain supply-chain logistics functions, including portions of its product distribution,
transportation management and information technology support services; AMD may incur future impairments of
goodwill; AMD’s worldwide operations are subject to political, legal and economic risks and natural disasters,
which could have a material adverse effect on it; worldwide political conditions may adversely affect demand for
AMD’s products; unfavorable currency exchange rate fluctuations could adversely affect AMD; AMD’s inability
to effectively control the sales of its products on the gray market could have a material adverse effect on it; if
AMD cannot adequately protect its technology or other intellectual property in the United States and abroad,
through patents, copyrights, trade secrets, trademarks and other measures, it may lose a competitive advantage
and incur significant expenses; AMD may not be able to successfully monetize its intellectual property; AMD is a
party to litigation and may become a party to other claims or litigation that could cause it to incur substantial
costs or pay substantial damages or prohibit it from selling its products; AMD’s business is subject to potential
tax liabilities; a variety of environmental laws that AMD is subject to could result in additional costs and
liabilities; and higher health care costs and labor costs could adversely affect AMD’s business.
For a discussion of the factors that could cause actual results to differ materially from the forward-looking
statements, see “Part I, Item 1A-Risk Factors” and the “Financial Condition” section set forth in “Part II,
Item 7-Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or MD&A,
beginning on page 41 below and such other risks and uncertainties as set forth below in this report or detailed in
our other Securities and Exchange Commission (SEC) reports and filings. We assume no obligation to update
forward-looking statements.
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