Seagate 2014 Annual Report Download - page 38
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competitivepricesandcouldimpacttheavailabilityofcertainmineralsusedinthemanufactureofourproducts,includinggold,tantalum,tinandtungsten.As
theremaybeonlyalimitednumberofsuppliersof"conflictfree"minerals,wecannotbesurethatwewillbeabletoobtainnecessaryconflictfreemineralsin
sufficientquantitiesoratcompetitiveprices.Ourcustomers,includingourOEMcustomers,mayrequirethatourproductsbefreeofconflictminerals,andour
revenuesandmarginsmaybeharmedifweareunabletoprocureconflictfreemineralsatareasonableprice,oratall,orareunabletopassthroughanyincreased
costsassociatedwithmeetingthesedemands.Additionally,wemayfacereputationalchallengeswithourcustomersandotherstakeholdersifweareunableto
sufficientlyverifytheoriginsofallmineralsusedinourproductsthroughtheduediligenceproceduresthatweimplement.Wemayalsofacechallengeswith
governmentregulatorsandourcustomersandsuppliersifweareunabletosufficientlyverifythatthemetalsusedinourproductsareconflictfree.Weexpectthat
theremaybematerialcostsassociatedwithcomplyingwiththedisclosurerequirements,suchascostsrelatedtodeterminingthesourceofcertainmineralsusedin
ourproducts,aswellascostsrelatedtopossiblechangestoproducts,processes,orsourcesofsupplyasaconsequenceofsuchverificationanddisclosure
requirements.
ITEM1B.UNRESOLVEDSTAFFCOMMENTS
None.
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