Seagate 2010 Annual Report Download - page 36

Table of Contents
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.
Dependence on Key Personnel
—The loss of key executive officers and employees could negatively impact our business prospects.
Our future performance depends to a significant degree upon the continued service of key members of management as well as marketing,
sales and product development personnel. The loss of one or more of our key personnel may have a material adverse effect on our business,
results of operations and financial condition. We believe our future success will also depend in large part upon our ability to attract, retain and
further motivate highly skilled management, marketing, sales and product development personnel. We have experienced intense competition for
personnel, and we cannot assure you that we will be able to retain our key employees or that we will be successful in attracting, assimilating and
retaining personnel in the future.
Potential Governmental Action
—Governmental action against companies located in offshore jurisdictions may lead to a reduction in the
demand for our ordinary shares.
Recent U.S. federal and state legislation has been proposed, and additional legislation may be proposed in the future which, if enacted,
could have an adverse tax impact on either Seagate or its shareholders.
Securities Litigation
—Significant fluctuations in the market price of our ordinary shares could result in securities class action claims
against us.
Significant price and value fluctuations have occurred with respect to the publicly traded securities of disk drive companies and technology
companies generally. The price of our ordinary shares is likely to be volatile in the future. In the past, following periods of decline in the market
price of a company's securities, class action lawsuits have often been pursued against that company. If similar litigation were pursued against us,
it could result in substantial costs and a diversion of management's attention and resources, which could materially adversely affect our results of
operations, financial condition and liquidity.
Global Credit and Financial Market Conditions—Deterioration in global credit and financial market conditions could negatively impact the
value of our current portfolio of cash equivalents, short-term investments or auction rate securities and our ability to meet our financing
objectives.
Our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of 90 days or less at the time of
purchase. Our short-term investments consist primarily of readily marketable debt securities with remaining maturities of more than 90 days at
the time of purchase. Our investment policy has as its principal objectives the preservation of principal and maintenance of liquidity. We
mitigate default risk by investing in high-quality investment grade securities, limiting the time to maturity and by monitoring the counter-parties
and underlying obligors closely.
While as of the date of this filing, we are not aware of any other material downgrades, losses, or other significant deterioration in the fair
value of our cash equivalents or short-term investments or auction rate securities since July 1, 2011, no assurance can be given that further
deterioration in conditions of the global credit and financial markets would not negatively impact our current portfolio of cash equivalents, short-
term investments or auction rate securities or our ability to meet our financing objectives.
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