HP 2015 Annual Report Download - page 28

Table of Contents
Due to the international nature of our business, political or economic changes or other factors could harm our business and financial performance.
Sales outside the United States made up approximately 64% of our net revenue for fiscal 2015. In addition, a portion of our business activity is being
conducted in emerging markets. Our future business and financial performance could suffer due to a variety of international factors, including:
•ongoing instability or changes in a country's or region's economic or political conditions, including inflation, recession, interest rate
fluctuations and actual or anticipated military or political conflicts;
•longer collection cycles and financial instability among customers;
•trade regulations and procedures and actions affecting production, pricing and marketing of products, including policies adopted by countries
that may champion or otherwise favor domestic companies and technologies over foreign competitors;
•local labor conditions and regulations, including local labor issues faced by specific suppliers and OEMs;
•managing a geographically dispersed workforce;
•changes in the international, national or local regulatory and legal environments;
•differing technology standards or customer requirements;
•import, export or other business licensing requirements or requirements relating to making foreign direct investments, which could increase
our cost of doing business in certain jurisdictions, prevent us from shipping products to particular countries or markets, affect our ability to
obtain favorable terms for components, increase our operating costs or lead to penalties or restrictions;
•difficulties associated with repatriating earnings generated or held abroad in a tax-efficient manner and changes in tax laws; and
•fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping
infrastructure at important geographic points of exit and entry for our products and shipments.
The factors described above also could disrupt our product and component manufacturing and key suppliers located outside of the United States. For
example, we rely on manufacturers in Taiwan for the production of notebook computers and other suppliers in Asia for product assembly and manufacture.
In many foreign countries, particularly in those with developing economies, there are companies that engage in business practices prohibited by laws
and regulations applicable to us, such as the Foreign Corrupt Practices Act of 1977, as amended (the "FCPA"). Although we implement policies, procedures
and training designed to facilitate compliance with these laws, our employees, contractors and agents, as well as those of the companies to which we
outsource certain of our business operations, may take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have
an adverse effect on our business and reputation.
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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