Seagate 2015 Annual Report Download - page 34

TableofContents
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withdrawalofUnitedKingdomfromtheEuropeanUnion,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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.
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morestatesorcountries,liabilitytoourcustomersanddamagetoourreputation,whichcouldresultinamaterialadverseeffectonthe
financialconditionorresultsofoperations.
Anycostreductioninitiativesthatweundertakemaynotdelivertheresultsweexpect,andtheseactionsmayadverselyaffectourbusiness.
OnJune27,2016andJuly11,2016weannouncedrestructuringplanstobesubstantiallycompletedbytheendoffiscalyear2017.Inaddition,management
willcontinuetoevaluateourglobalfootprintandcoststructure,andadditionalrestructuringplansareexpectedtobeformalized.Asaresultofourrestructuring,
wemayexperiencealossofcontinuity,lossofaccumulatedknowledge,disruptionstoouroperationsand/orinefficiencyduringtransitionalperiods.Anycost-
cuttingmeasurescouldimpactemployeeretention.Inaddition,wecannotbesurethatthecostreductionandglobalfootprintconsolidationwillbesuccessfulin
reducingouroverallexpensesasweexpectorthatadditionalcostswillnotoffsetanysuchreductionsorglobalfootprintconsolidation.Ifouroperatingcostsare
higherthanweexpectorifwedonotmaintainadequatecontrolofourcostsandexpenses,ourresultofoperationsmaysuffer.
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