Motorola 2010 Annual Report Download - page 29

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macroenvironment on the Company’s near-term forecasts. Declines in the Company’s stock price or reductions in
the Company’s future cash flow estimates and future operating results may require the Company to record
significant additional goodwill or other long-lived asset impairment charges in our financial statements in future
periods, which could negatively impact our financial results.
It may be difficult for us to recruit and retain the types of engineers and other highly-skilled employees that are
necessary to remain competitive.
Competition for key technical personnel in high-technology industries is intense. We believe that our future
success depends in large part on our continued ability to hire, assimilate, retain and leverage the skills of qualified
engineers and other highly-skilled personnel needed to develop successful new products. We may not be as
successful as our competitors at recruiting, assimilating, retaining and utilizing these highly-skilled personnel.
Our success depends in part upon our ability to attract, retain and prepare succession plans for senior management
and key employees.
The performance of our CEO, senior management and other key employees is critical to our success. If we are
unable to retain talented, highly qualified senior management and other key employees or attract them when
needed, it could negatively impact the Company. We rely on the experience of our senior management, who have
specific knowledge relating to us and our industry that is difficult to replace and competition for management with
experience in the communications industry is intense. A loss of the CEO, a member of senior management or key
employee particularly to a competitor could also place us at a competitive disadvantage. Further, if we fail to
adequately plan for the succession of our CEO, senior management and other key employees, the Company could be
negatively impacted.
The unfavorable outcome of any pending or future litigation or administrative action could negatively impact the
Company.
Our financial results could be negatively impacted by unfavorable outcomes to any pending or future litigation
or administrative actions, including those related to the Foreign Corrupt Practices Act and other anti-bribery laws.
See “Item 3—Legal Proceedings.” There can be no assurances as to the favorable outcome of any litigation. In
addition, it can be very costly to defend litigation and these costs could negatively impact our financial results.
It is important that we are able to obtain many different types of insurance, and if we are not able to obtain
insurance we are forced to retain the risk.
The Company has many types of insurance coverage and also self-insures for some risks and obligations. While
the cost and availability of most insurance is stable, there are still certain types and levels of insurance that remain
difficult to obtain. Natural disasters and certain risks arising from securities claims and public liability are potential
self-insured events that could negatively impact our financial results. In addition, while we maintain insurance for
certain risks, the amount of our insurance coverage may not be adequate to cover all claims or liabilities, and we
may be forced to bear substantial costs from an accident, incident or claim.
We are subject to a wide range of product regulatory and safety, consumer, worker safety and environmental laws.
Our operations and the products we manufacture and/or sell are subject to a wide range of global laws.
Compliance with existing or future laws could subject us to future costs or liabilities, impact our production
capabilities, constrict our ability to sell, expand or acquire facilities, and generally impact our financial performance.
Some of these laws relate to the use, disposal, clean up of, and exposure to certain substances. In the United States,
laws often require parties to fund remedial studies or actions regardless of fault and often times in response to
action or omissions that were legal at the time they occurred. The Company continues to incur disposal costs and
has ongoing remediation obligations. Changes to U.S. environmental laws or our discovery of additional obligations
under these laws could have a negative impact on our financial performance.
Laws focused on: the energy efficiency of electronic products and accessories; recycling of both electronic
products and packaging; reducing or eliminating certain hazardous substances in electronic products; and the
transportation of batteries continue to expand significantly. Laws pertaining to accessibility features of electronic
products, standardization of connectors and power supplies, the transportation of lithium-ion batteries and other
aspects are also proliferating.