Symantec 2010 Annual Report Download - page 92

If we fail to manage our sales and distribution channels successfully, these channels may conflict with one
another or otherwise fail to perform as we anticipate, which could reduce our sales and increase our expenses as well
as weaken our competitive position. Some of our distribution partners have experienced financial difficulties in the
past, and if our partners suffer financial difficulties in the future because of general economic conditions or for other
reasons, these partners may delay paying their obligations to us and we may have reduced sales or increased bad
debt expense that could adversely affect our operating results. In addition, reliance on multiple channels subjects us
to events that could cause unpredictability in demand, which could increase the risk that we may be unable to plan
effectively for the future, and could result in adverse operating results in future periods.
We have grown, and may continue to grow, through acquisitions that give rise to risks and challenges that
could adversely affect our future financial results.
We have in the past acquired, and we expect to acquire in the future, other businesses, business units, and
technologies. Acquisitions can involve a number of special risks and challenges, including:
• Complexity, time, and costs associated with the integration of acquired business operations, workforce,
products, and technologies into our existing business, sales force, employee base, product lines, and
technology
• Diversion of management time and attention from our existing business and other business opportunities
• Loss or termination of employees, including costs associated with the termination or replacement of those
employees
• Assumption of debt or other liabilities of the acquired business, including litigation related to the acquired
business
• The addition of acquisition-related debt as well as increased expenses and working capital requirements
• Dilution of stock ownership of existing stockholders
• Increased costs and efforts in connection with compliance with Section 404 of the Sarbanes-Oxley Act
• Substantial accounting charges for restructuring and related expenses, write-off of in-process research and
development, impairment of goodwill, amortization of intangible assets, and stock-based compensation
expense, such as the $7.4 billion goodwill write-down we recorded during fiscal 2009
Integrating acquired businesses has been and will continue to be a complex, time consuming, and expensive
process, and can impact the effectiveness of our internal control over financial reporting.
If integration of our acquired businesses is not successful, we may not realize the potential benefits of an
acquisition or suffer other adverse effects that we currently do not foresee. To integrate acquired businesses, we
must implement our technology systems in the acquired operations and integrate and manage the personnel of the
acquired operations. We also must effectively integrate the different cultures of acquired business organizations into
our own in a way that aligns various interests, and may need to enter new markets in which we have no or limited
experience and where competitors in such markets have stronger market positions.
Any of the foregoing, and other factors, could harm our ability to achieve anticipated levels of profitability
from acquired businesses or to realize other anticipated benefits of acquisitions. In addition, because acquisitions of
high technology companies are inherently risky, no assurance can be given that our previous or future acquisitions
will be successful and will not adversely affect our business, operating results, or financial condition.
We have not historically maintained substantial levels of indebtedness, and our financial condition and
results of operations could be adversely affected if we do not effectively manage our liabilities.
In June 2006, we sold $2.1 billion in aggregate principal amount of convertible senior notes. As a result of the
sale of the notes, we have a substantially greater amount of long-term debt than we maintained prior to that sale. In
addition, we have entered into a credit facility with a borrowing capacity of $1 billion. As of April 2, 2010, we had
no borrowings under our credit facility. From time to time in the future, we may also incur indebtedness in addition
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