Symantec 2014 Annual Report Download - page 97

We are currently planning and designing information systems enhancements, and problems with the design or
implementation of these enhancements could interfere with our business and operations.
We are currently in the process of significantly enhancing our information systems, including planning and
designing a new enterprise resource planning system. The implementation of significant enhancements to
information systems is frequently disruptive to the underlying business of an enterprise, which may especially be
the case for us due to the size and complexity of our businesses. Any disruptions relating to our systems
enhancements, particularly any disruptions impacting our operations during the design or implementation periods,
could adversely affect our ability to process customer orders, ship products, provide services and support to our
customers, bill and track our customers, fulfill contractual obligations, and otherwise run our business. Even if we
do not encounter these adverse effects, the planning, designing and implementation may be much more costly than
we anticipated. If we are unable to successfully plan, design or implement the information systems enhancements as
planned, our financial position, results of operations, and cash flows could be negatively impacted.
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 international operations involve risks that could increase our expenses, adversely affect our operating
results, and require increased time and attention of our management.
We derive a substantial portion of our revenues from customers located outside of the U.S. and we have significant
operations outside of the U.S., including engineering, sales, customer support, and production. We plan to expand
our international operations, but such expansion is contingent upon our identification of growth opportunities. Our
international operations are subject to risks in addition to those faced by our domestic operations, including:
• Potential loss of proprietary information due to misappropriation or laws that may be less protective of
our intellectual property rights than U.S. laws or that may not be adequately enforced
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