Facebook 2013 Annual Report Download - page 28

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26
We plan to continue expanding our operations abroad where we have limited operating experience and may be subject to increased
business and economic risks that could affect our financial results.
We plan to continue the international expansion of our business operations and the translation of our products. We currently
make Facebook available in more than 70 different languages, and we have offices or data centers in more than 25 different countries.
We may enter new international markets where we have limited or no experience in marketing, selling, and deploying our products.
For example, we continue to evaluate making Facebook generally available in China. However, this market has substantial legal and
regulatory complexities that have prevented this to date. If we fail to deploy or manage our operations in international markets
successfully, our business may suffer. In addition, we are subject to a variety of risks inherent in doing business internationally,
including:
• political, social, or economic instability;
• risks related to the legal and regulatory environment in foreign jurisdictions, including with respect to privacy and tax
and terrestrial infrastructure matters, and unexpected changes in laws, regulatory requirements, and enforcement;
• potential damage to our brand and reputation due to compliance with local laws, including potential censorship or
requirements to provide user information to local authorities;
• fluctuations in currency exchange rates;
• higher levels of credit risk and payment fraud;
• enhanced difficulties of integrating any foreign acquisitions;
• burdens of complying with a variety of foreign laws;
• reduced protection for intellectual property rights in some countries;
• difficulties in staffing and managing global operations and the increased travel, infrastructure, and legal compliance
costs associated with multiple international locations;
• compliance with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and similar laws in other jurisdictions;
and
• compliance with statutory equity requirements and management of tax consequences.
If we are unable to expand internationally and manage the complexity of our global operations successfully, our financial results could
be adversely affected.
We may incur a substantial amount of indebtedness, which could adversely affect our financial condition.
In August 2013, we entered into a five-year senior unsecured revolving credit facility under which we may borrow up to $6.5
billion to fund working capital and general corporate purposes. As of December 31, 2013, no amounts were outstanding under this
facility. If we draw down on this facility in the future, our interest expense and principal repayment requirements will increase
significantly, which could have an adverse effect on our financial results.
We may require additional capital to support our business growth, and this capital may not be available on acceptable terms, if at
all.
We may require additional capital to support our business growth or to respond to business opportunities, challenges or
unforeseen circumstances. Our ability to obtain additional capital, if and when required, will depend on our business plans, investor
demand, our operating performance, the condition of the capital markets, and other factors. If we raise additional funds through the
issuance of equity, equity-linked or debt securities, those securities may have rights, preferences, or privileges senior to the rights of
our Class A common stock, and our existing stockholders may experience dilution. If we are unable to obtain additional capital, or
are unable to obtain additional capital on satisfactory terms, our ability to continue to support our business growth or to respond to
business opportunities, challenges, or unforeseen circumstances could be adversely affected, and our business may be harmed.
If we default on our leasing and credit obligations, our operations may be interrupted and our business and financial results could
be adversely affected.
We finance a significant portion of our expenditures through leasing arrangements, some of which are not required to be reflected
on our balance sheet, and we may enter into additional similar arrangements in the future. In particular, we have used these types of