Symantec 2012 Annual Report Download - page 97

We have grown, and may continue to grow, through acquisitions, which gives 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
• Diversion of management time and attention
• Loss or termination of employees, including costs associated with the termination or replacement of those
employees
• Assumption of 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
• 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
If integration of our acquired businesses is not successful, we may not realize the potential benefits of an
acquisition or suffer other adverse effects. 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 our acquired businesses or to realize other anticipated benefits of acquisitions.
Our financial condition and results of operations could be adversely affected if we do not effectively
manage our liabilities.
As a result of the sale of our 1.00% convertible senior notes (“1.00% notes”) in June 2006, and 2.75% senior
notes (“2.75% notes”) and 4.20% senior notes (“4.20% notes”), collectively referred to as the Senior Notes in
September 2010, we have notes outstanding in an aggregate principal amount of $2.1 billion that mature at
specific dates in calendar years 2013, 2015 and 2020, with approximately half of this indebtedness due in June
2013. In addition, we have entered into a credit facility with a borrowing capacity of $1 billion. From time to
time in the future, we may also incur indebtedness in addition to the amount available under our credit facility.
The maintenance of our debt levels could adversely affect our flexibility to take advantage of certain corporate
opportunities and could adversely affect our financial condition and results of operations. We may be required to
use all or a substantial portion of our cash balance to repay these notes on maturity unless we can obtain new
financing.
Adverse global economic events may harm our business, operating results and financial condition.
Adverse macroeconomic conditions could negatively affect our business, operating results or financial
condition under a number of different scenarios. During challenging economic times and periods of high
unemployment, current or potential customers may delay or forgo decisions to license new products or additional
instances of existing products, upgrade their existing hardware or operating environments (which upgrades are
often a catalyst for new purchases of our software), or purchase services. Customers may also have difficulties in
obtaining the requisite third-party financing to complete the purchase of our products and services. An adverse
macroeconomic environment could also subject us to increased credit risk should customers be unable to pay us,
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