Seagate 2012 Annual Report Download - page 36

Table of Contents
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.
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 or short-term investments 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 , 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 or short-term investments or our ability to meet our
financing objectives.
Environmental Regulations
—Failure to comply with applicable environmental laws and regulations could have a material adverse effect on
our business, results of operations and financial condition.
The sale and manufacturing of products in certain states and countries may subject us and our suppliers to state, federal and international
laws and regulations governing protection of the environment, including those governing discharges of pollutants into the air and water, the
management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, restrictions on the presence of certain
substances in electronic products and the responsibility for environmentally safe disposal or recycling. We endeavor to ensure that we and our
suppliers comply with all applicable environmental laws and regulations, however, compliance may increase our operating costs and otherwise
impact future financial results. If additional or more stringent requirements are imposed on us in the future, we could incur additional operating
costs and capital expenditures. If we fail to comply with applicable environmental laws, regulations, initiatives, or standards of conduct, our
customers may refuse to purchase our products and we could be subject to fines, penalties and possible prohibition of sales of our products into
one or
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