Intel 2012 Annual Report Download - page 27
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When we decide to sell assets or a business, we may have difficulty selling on acceptable terms in a timely manner, and
the agreed-upon terms and financing arrangements could be renegotiated due to changes in business or market
conditions. These circumstances could delay the achievement of our strategic objectives or cause us to incur added
expense, or we may sell a business at a price or on terms that are less favorable than we had anticipated, resulting in a
loss on the transaction.
If we do enter into agreements with respect to acquisitions, divestitures, or other transactions, we may fail to complete
them due to factors such as:
• failure to obtain regulatory or other approvals;
• IP disputes or other litigation; or
• difficulties obtaining financing for the transaction.
Our failure to comply with environmental laws and regulations could harm our business and results of
operations.
The manufacturing and assembly and test of our products require the use of hazardous materials that are subject to a
broad array of EHS laws and regulations. Our failure to comply with these laws or regulations could result in:
• regulatory penalties, fines, and legal liabilities;
• suspension of production;
• alteration of our fabrication and assembly and test processes; and
• restrictions on our operations or sales.
Our failure to manage the use, transportation, emissions, discharge, storage, recycling, or disposal of hazardous materials
could lead to increased costs or future liabilities. Environmental laws and regulations could also require us to acquire
pollution abatement or remediation equipment, modify product designs, or incur other expenses. Many new materials that
we are evaluating for use in our operations may be subject to regulation under environmental laws and regulations. These
restrictions could harm our business and results of operations by increasing our expenses or requiring us to alter
manufacturing and assembly and test processes.
Climate change poses both regulatory and physical risks that could harm our results of operations and affect the
way we conduct business.
In addition to the possible direct economic impact that climate change could have on us, climate change mitigation
programs and regulations can increase our costs. The cost of perfluorocompounds (PFCs)—a gas that we use in
manufacturing—could increase under some climate-change-focused emissions trading programs that may be imposed
through regulation. If the use of PFCs is prohibited, we would need to obtain substitute materials that may cost more or be
less available for our manufacturing operations. Air-quality permit requirements for our manufacturing operations could
become more burdensome and cause delays in our ability to modify or build additional manufacturing capacity. Under
recently adopted greenhouse gas regulations in the U.S., many of our manufacturing facilities have become “major”
sources under the Clean Air Act. At a minimum, this change in status results in some uncertainty as the EPA adopts
guidance on its greenhouse gas regulations. Due to the dynamic nature of our operations, these regulations will likely
result in increased costs for our U.S. operations. These cost increases could be associated with new air pollution control
requirements, and increased or new monitoring, recordkeeping, and reporting of greenhouse gas emissions. We also see
the potential for higher energy costs driven by climate change regulations. Our costs could increase if utility companies
pass on their costs, such as those associated with carbon taxes, emission cap and trade programs, or renewable portfolio
standards. While we maintain business recovery plans that are intended to allow us to recover from natural disasters or
other events that can be disruptive to our business, we cannot be sure that our plans will fully protect us from all such
disasters or events. Many of our operations are located in semi-arid regions, such as Israel and the southwestern U.S.
Some scenarios predict that these regions may become even more vulnerable to prolonged droughts due to climate
change.
In order to compete, we must attract, retain, and motivate key employees, and our failure to do so could harm our
results of operations.
In order to compete, we must attract, retain, and motivate executives and other key employees. Hiring and retaining
qualified executives, scientists, engineers, technical staff, and sales representatives are critical to our business, and
competition for experienced employees in the semiconductor industry can be intense. Our current Chief Executive Officer
(CEO) plans to retire in May 2013, and the Board of Directors is working to choose a successor. The succession and
transition process may have a direct or indirect effect on business and operations. In connection with the appointment of
the new CEO, we will seek to retain our executive management team (some of whom are being considered for the CEO
position), and keep employees focused on achieving our strategic goals and objectives. To help attract, retain, and
motivate qualified employees, we use share-based incentive awards such as employee stock options and non-vested
share units (restricted stock units). If the value of such stock awards does not appreciate as measured by the