DuPont 2010 Annual Report Download - page 10

Part I
ITEM 1A. RISK FACTORS, continued
denominated revenues and other assets and liabilities created in the normal course of business. Failure to successfully
manage these risks could have an adverse impact on the company’s financial position, results of operations and cash
flows.
Conditions in the global economy and global capital markets may adversely affect the company’s results of
operations, financial condition, and cash flows.
The company’s business and operating results may in the future be adversely affected by global economic conditions,
including instability in credit markets, declining consumer and business confidence, fluctuating commodity prices,
volatile exchange rates, and other challenges that could affect the global economy. The company’s customers may
experience deterioration of their businesses, cash flow shortages, and difficulty obtaining financing. As a result,
existing or potential customers may delay or cancel plans to purchase products and may not be able to fulfill their
obligations in a timely fashion. Further, suppliers could experience similar conditions, which could impact their ability to
fulfill their obligations to the company. Adversity within capital markets may impact future return on pension assets, thus
resulting in greater future pension costs that impact the company’s results. Future weakness in the global economy
could adversely affect the company’s results of operations, financial condition and cash flows in future periods.
The company’s results of operations and financial condition could be seriously impacted by business
disruptions and security threats.
Business disruptions, including supply disruptions, increasing costs for energy, temporary plant and/or power outages
and information technology system and network disruptions, could seriously harm the company’s operations as well
as the operations of its customers and suppliers. Like many other multinational organizations, the company faces
security threats to its facilities, data and information technology infrastructure. Although it is impossible to predict the
occurrences or consequences of business disruptions or security threats, they could result in reduced demand for the
company’s products, make it difficult or impossible for the company to deliver products to its customers or to receive
raw materials from suppliers, and create delays and inefficiencies in the supply chain. The company actively manages
the risks within its control that could lead to business disruptions or security breaches in order to mitigate any potential
impact from business disruptions regardless of cause including acts of sabotage, terrorism or war, weather events and
natural disasters. Despite these efforts, the impact from business disruptions and security breaches could significantly
increase the cost of doing business or otherwise adversely impact the company’s financial performance.
Inability to protect and enforce the company’s intellectual property rights could adversely affect the company’s
financial results.
Intellectual property rights are important to the company’s business. The company endeavors to protect its intellectual
property rights in jurisdictions in which its products are produced or used and in jurisdictions into which its products are
imported. However, the company may be unable to obtain protection for its intellectual property in key jurisdictions.
Additionally, the company has designed and implemented internal controls to restrict access to and distribution of its
intellectual property, including confidential information and trade secrets. Despite these precautions, it is possible that
unauthorized parties may access and use such property. When misappropriation is discovered, the company reports
such situations to the appropriate governmental authorities for investigation and takes measures to mitigate any
potential impact.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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