Seagate 2014 Annual Report Download - page 35

TableofContents
multinationalsalongwithpotentialchangesinaccountingandotherlaws,regulations,administrativepractices,principles,andinterpretationscould
increasetheriskofdoubletaxation,causeincreasedtaxauditactivity,andcouldimpactoureffectivetaxrate.
•IncreasedCosts.Theshippingandtransportationcostsassociatedwithourinternationaloperationsaretypicallyhigherthanthoseassociatedwith
ourU.S.operations,resultingindecreasedoperatingmarginsinsomeforeigncountries.
•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.
•GlobalHealthOutbreaks.Theoccurrenceofapandemicdiseasemayadverselyimpactouroperations,andsomeofourkeycustomers.Such
diseasescouldalsopotentiallydisruptthetimelinessandreliabilityofthedistributionnetworkwerelyon.
•AccesstoPersonnel.Thereissubstantialcompetitionforqualifiedandcapablepersonnelincertainjurisdictionsinwhichweoperate,including
China,whichmaymakeitdifficultforustorecruitandretainqualifiedemployeesinsufficientnumbers.Increaseddifficultyinrecruitingor
retainingsufficientandadequatepersonnelinourinternationaloperationsmayleadtoincreasedmanufacturingandemploymentcompensation
costs,whichcouldadverselyaffectourresultsofoperations.
Politicalevents,war,terrorism,naturaldisasters,publichealthissuesandothercircumstancescouldmateriallyadverselyaffectourresultsofoperationsand
financialcondition.
War,terrorism,geopoliticaluncertainties,naturaldisasters,publichealthissues,andotherbusinessinterruptionshavecausedandcouldcausedamageor
disruptiontointernationalcommerceandtheglobaleconomy,andthuscouldhaveastrongnegativeeffectonourbusiness,oursuppliers,logisticsproviders,
manufacturingvendorsandcustomers.Ourbusinessoperationsaresubjecttointerruptionbynaturaldisasterssuchasfloodsandearthquakes,fire,powershortages,
terroristattacks,otherhostileacts,labordisputes,publichealthissues,andothereventsbeyondourcontrol.Sucheventscoulddecreasedemandforourproducts,
makeitdifficultorimpossibleforustomakeanddeliverproductstoourcustomers,ortoreceivecomponentsfromoursuppliers,andcreatedelaysand
inefficienciesinoursupplychain.Intheeventofanaturaldisaster,lossesandsignificantrecoverytimecouldberequiredtoresumeoperationsandourfinancial
conditionandoperatingresultscouldbemateriallyadverselyaffected.Shouldmajorpublichealthissues,includingpandemics,arise,wecouldbenegatively
affectedbystringentemployeetravelrestrictions,additionallimitationsinfreightservices,governmentalactionslimitingthemovementofproductsbetween
regions,delaysinproductionrampsofnewproducts,anddisruptionsinouroperationsandsomeofourkeycustomers.
MacroeconomicdevelopmentslikethedebtcrisisincertaincountriesintheEuropeanUnionandslowingeconomiesinpartsofAsiaandSouthAmericacould
negativelyaffectourbusiness,operatingresultsorfinancialconditionwhich,inturn,couldadverselyaffectourstockprice.Ageneralweakeningof,andrelated
decliningcorporateconfidencein,theglobaleconomyorthecurtailmentingovernmentorcorporatespendingcouldcausecurrentorpotentialcustomerstoreduce
theirinformationtechnology(IT)budgetsorbeunabletofundhardwaresystems,whichcouldcausecustomerstodelay,decreaseorcancelpurchasesofour
productsorcausecustomersnottopayusortodelaypayingusforpreviouslypurchasedproductsandservices.
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