Facebook 2014 Annual Report Download - page 26

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, 2014, 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 when required, 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 arrangements to finance some of
our equipment, offices, and data centers. In addition, we have a $6.5 billion revolving credit facility that we may draw upon to finance our operations or
other corporate purposes. If we default on these leasing and credit obligations, our leasing partners and lenders may, among other things:
If some or all of these events were to occur, our operations may be interrupted and our ability to fund our operations or obligations, as well as our
business, financial results, and financial condition, could be adversely affected.
23
•
foreign exchange controls that might prevent us from repatriating cash earned in countries outside the United States;
•
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.
•
require repayment of any outstanding lease obligations or amounts drawn on our credit facility;
•
terminate our leasing arrangements and credit facilities;
•
terminate our access to the leased data centers and offices we utilize;
•
stop delivery of ordered equipment;
•
sell or require us to return our leased equipment; or
•
require us to pay significant damages.