1385157--11/20/2008--Tyco_Electronics

related topics

{regulation, change, law}

{product, market, service}

{condition, economic, financial}

{cost, regulation, environmental}

{operation, international, foreign}

{provision, law, control}

{acquisition, growth, future}

{tax, income, asset}

{customer, product, revenue}

{debt, indebtedness, cash}

{stock, price, operating}

{financial, litigation, operation}

{control, financial, internal}

{capital, credit, financial}

{personnel, key, retain}

{property, intellectual, protect}

{product, candidate, development}

{investment, property, distribution}

Risks Relating to Our Business Current and future conditions in the global economy and global capital markets, and cyclical industry conditions, may adversely affect our results of operations, financial condition, and cash flows. We are dependent on the automotive industry which is experiencing significant declines in the current economic environment. We are dependent on the telecommunications, computer, and consumer electronics industries. Disruption in credit markets and volatility in equity markets may affect our ability to access sufficient funding. We encounter competition in substantially all areas of the electronic components industry. We are dependent on market acceptance of new product introductions and product innovations for continued revenue growth. Like other suppliers to the electronics industry, we are subject to continuing pressure to lower our prices. We may be negatively affected as our customers and vendors continue to consolidate. Our results are sensitive to raw material availability, quality, and cost. Foreign currency exchange rates may adversely affect our results. The life cycles of our products can be very short. Divestitures of some of our businesses or product lines may materially adversely affect our results of operations, financial condition, and cash flows. A decline in the market value of our pension plans' investment portfolios could adversely affect our results of operations, financial condition, and cash flows. We may use components and products manufactured by third parties. Our future success is substantially dependent on our ability to attract and retain highly qualified technical, managerial, marketing, finance, and administrative personnel. If we fail to remediate the material weakness in our internal control over financial reporting relating to accounting for income taxes, concerns about the potential for material errors in our financial reporting could cause the value of our securities to be adversely affected. If any of our operations are found not to comply with applicable antitrust or competition laws, our business may suffer. We are subject to the risks of political, economic, and military instability in countries outside the United States. We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws. Our operations expose us to the risk of material environmental liabilities, litigation, and violations. Our products are subject to various requirements related to chemical usage, hazardous material content, and recycling. Our ability to compete effectively depends, in part, on our ability to maintain the proprietary nature of our technology. We are a defendant to a variety of litigation in the course of our business that could cause a material adverse effect on our results of operations, financial condition, and cash flows. Covenants in our debt instruments may adversely affect us. Future acquisitions may not be successful. Future acquisitions could require us to issue additional debt or equity. Risks Relating to Our Separation from Tyco International We are responsible for a portion of Tyco International's contingent and other corporate liabilities, including those relating to shareholder litigation. We share responsibility for certain of our, Tyco International's and Covidien's income tax liabilities for tax periods prior to and including the distribution date. If the distribution or certain internal transactions undertaken in anticipation of the separation are determined to be taxable for U.S. federal income tax purposes, we could incur significant U.S. federal income tax liabilities. We might not be able to engage in desirable strategic transactions and equity issuances because of restrictions relating to U.S. federal income tax requirements for tax-free distributions. Risks Relating to Our Jurisdiction of Incorporation Legislation and negative publicity regarding Bermuda companies could increase our tax burden and adversely affect our results of operations, financial condition, and cash flows. Bermuda law differs from the laws in effect in the United States and may afford less protection to holders of our securities. Risks Relating to Our Common Shares The market price of our common shares may fluctuate widely. Certain provisions of our bye-laws may reduce the likelihood of any unsolicited acquisition proposal or potential change of control that our shareholders might consider favorable.

Full 10-K form ▸

1385157--11/20/2008--Tyco_Electronics_Ltd.