Seagate 2003 Annual Report Download - page 50

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Table of Contents
Political Risks Associated with International Operations—Our international operations subject us to risks related to political unrest
and terrorism.
•
Credit and Access to Capital Risks . Our international customers could have reduced access to working capital due to higher
interest rates, reduced bank lending resulting from contractions in the money supply or the deterioration in the customer’s or its
bank
’
s financial condition, or the inability to access other financing.
We have manufacturing facilities in parts of the world that periodically experience political unrest. This could disrupt our ability to
manufacture important components as well as cause interruptions and/or delays in our ability to ship components to other locations for
continued manufacture and assembly. Any such delays or interruptions could result in delays in our ability to fill orders and have an adverse
effect on our results of operation and financial condition. U.S. and international responses to the terrorist attacks on September 11, 2001, the
ongoing hostilities in Afghanistan and Iraq and the risk of hostilities with North Korea could exacerbate these risks.
Legal and Operational Risks Associated with International Operations—Our international operations subject us to risks related to
staffing and management, legal and regulatory requirements and the protection of intellectual property.
Operating outside of the United States creates difficulties associated with staffing and managing our international manufacturing
facilities, complying with local legal and regulatory requirements and protecting our intellectual property. We cannot assure you that we will
continue to be found to be operating in compliance with applicable customs, currency exchange control regulations, transfer pricing regulations
or any other laws or regulations to which we may be subject. We also cannot assure you that these laws will not be modified.
Conflicts of Interest of our Directors and Officers—Our directors and executive officers may have conflicts of interest because of
their ownership of capital stock of, and their employment with, our parent company and our affiliates.
Many of our directors and executive officers hold ordinary shares of our parent company, New SAC. Ownership of the capital stock of
our parent company by our directors and officers could create, or appear to create, potential conflicts of interest when our directors and officers
are faced with decisions that could have different implications for us and for New SAC.
Some of our directors also serve on the board of New SAC. Several of our executive officers also serve as officers and/or directors of
New SAC as well as of other affiliates of ours. In view of these overlapping relationships, conflicts of interest may exist or arise with respect to
existing and future business dealings, including the relative commitment of time and energy by our directors and officers to us and to our
parent company and affiliates, potential acquisitions of businesses or properties and other business opportunities, the issuance of additional
securities, the election of new or additional directors and the payment of distributions by us. We cannot assure you that any conflicts of interest
will be resolved in our favor.
Risks Associated with Future Acquisitions—We may not be able to identify suitable strategic alliance, acquisition or investment
opportunities, or successfully acquire and integrate companies that provide complementary products or technologies.
Our growth strategy may involve pursuing strategic alliances with, and making acquisitions of or investments in, other companies that are
complementary to our business. There is substantial competition for attractive strategic alliance, acquisition and investment candidates. We
may not be able to identify suitable acquisition, investment or strategic partnership candidates. Even if we were able to identify them, we
cannot assure you that we will be able to partner with, acquire or invest in suitable candidates, or integrate acquired technologies or operations
successfully into our existing technologies and operations. Our ability to finance
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