Symantec 2008 Annual Report Download - page 103

applied to future operating results, the estimate of the fair value of our reporting units could change significantly,
which could result in a goodwill impairment charge.
The foregoing types of accounting charges may also be incurred in connection with or as a result of other
business acquisitions. The price of our common stock could decline to the extent that our financial results are
materially affected by the foregoing accounting charges.
Our effective tax rate may increase, which could increase our income tax expense and reduce our net
income.
Our effective tax rate could be adversely affected by several factors, many of which are outside of our control,
including:
• Changes in the relative proportions of revenues and income before taxes in the various jurisdictions in which
we operate that have differing statutory tax rates
• Changing tax laws, regulations, and interpretations in multiple jurisdictions in which we operate as well as
the requirements of certain tax rulings
• The tax effects of purchase accounting for acquisitions and restructuring charges that may cause fluctuations
between reporting periods
• Tax assessments, or any related tax interest or penalties, could significantly affect our income tax expense for
the period in which the settlements take place.
The price of our common stock could decline if our financial results are materially affected by an adverse change in
our effective tax rate.
We report our results of operations based on our determinations of the amount of taxes owed in the various tax
jurisdictions in which we operate. From time to time, we receive notices that a tax authority to which we are subject
has determined that we owe a greater amount of tax than we have reported to such authority, and we are regularly
engaged in discussions, and sometimes disputes, with these tax authorities. We are engaged in disputes of this nature
at this time. If the ultimate determination of our taxes owed in any of these jurisdictions is for an amount in excess of
the tax provision we have recorded or reserved for, our operating results, cash flows, and financial condition could
be adversely affected.
Fluctuations in our quarterly financial results have affected the price of our common stock in the past
and could affect our stock price in the future.
Our quarterly financial results have fluctuated in the past and are likely to vary significantly in the future due to
a number of factors, many of which are outside of our control and which could adversely affect our operations and
operating results. If our quarterly financial results or our predictions of future financial results fail to meet the
expectations of securities analysts and investors, our stock price could be negatively affected. Any volatility in our
quarterly financial results may make it more difficult for us to raise capital in the future or pursue acquisitions that
involve issuances of our stock. Our operating results for prior periods may not be effective predictors of our future
performance.
Factors associated with our industry, the operation of our business, and the markets for our products may cause
our quarterly financial results to fluctuate, including:
• Reduced demand for any of our products
• Entry of new competition into our markets
• Competitive pricing pressure for one or more of our classes of products
• Our ability to timely complete the release of new or enhanced versions of our products
• The number, severity, and timing of threat outbreaks (e.g. worms and viruses)
• Our resellers making a substantial portion of their purchases near the end of each quarter
21