Seagate 2015 Annual Report Download - page 33

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TableofContents
couldimpacttheavailabilityofcertainmineralsusedinthemanufactureofourproducts,includinggold,tantalum,tinandtungsten.Astheremaybeonlyalimited
numberofsuppliersof"conflictfree"minerals,wecannotbesurethatwewillbeabletoobtainnecessaryconflictfreemineralsinsufficientquantitiesorat
competitiveprices.Ourcustomers,includingourOEMcustomers,mayrequirethatourproductsbefreeofconflictminerals,andourrevenuesandmarginsmaybe
harmedifweareunabletoprocureconflictfreemineralsatareasonableprice,oratall,orareunabletopassthroughanyincreasedcostsassociatedwithmeeting
thesedemands.Additionally,wemayfacereputationalchallengeswithourcustomersandotherstakeholdersifweareunabletosufficientlyverifytheoriginsofall
mineralsusedinourproductsthroughtheduediligenceproceduresthatweimplement.Wemayalsofacechallengeswithgovernmentregulatorsandourcustomers
andsuppliersifweareunabletosufficientlyverifythatthemetalsusedinourproductsareconflictfree.Weexpectthattheremaybematerialcostsassociatedwith
complyingwiththedisclosurerequirements,suchascostsrelatedtodeterminingthesourceofcertainmineralsusedinourproducts,aswellascostsrelatedto
possiblechangestoproducts,processes,orsourcesofsupplyasaconsequenceofsuchverificationanddisclosurerequirements.
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.
Duetothecomplexityofourproducts,somedefectsmayonlybecomedetectableafterdeployment.
Ourproductsarehighlycomplexandaredesignedtooperateinandformpartoflargercomplexnetworksandstoragesystems.Defectsinourproducts,orin
thenetworksandsystemsofwhichtheyformapart,directlyorindirectly,haveresultedinandmayinthefutureresultin:
•increasedcostsandproductdelaysuntilcomplexsolutionlevelinteroperabilityissuesareresolved;
•costsassociatedwiththeremediationofanyproblemsattributabletoourproducts;
•lossofordelaysinrevenues;
•lossofcustomers;
•failuretoachievemarketacceptanceandlossofmarketshare;
•increasedserviceandwarrantycosts;and
•increasedinsurancecosts.
Defectsinourproductscouldalsoresultinlegalactionsbyourcustomersforpropertydamage,injuryordeath.Productliabilityclaimscouldexceedthelevel
ofinsurancecoveragethatwehaveobtainedtocoverdefectsinourproducts.Anysignificantuninsuredclaimscouldsignificantlyharmourfinancialcondition.
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
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