Symantec 2016 Annual Report Download - page 109

our business that could impair our financial or operational flexibility, and would also require us to fund
additional interest expense. If additional financing is not available when required or is not available on
acceptable terms, we may be unable to successfully develop or enhance our software and services through
acquisitions in order to take advantage of business opportunities or respond to competitive pressures, which
could have a material adverse effect on our software and services offerings, revenues, results of operations and
financial condition.
Failure to maintain our credit ratings could adversely affect our liquidity, capital position, ability to hedge
certain financial risks, borrowing costs and access to capital markets.
Our credit risk is evaluated by the major independent rating agencies, and such agencies have in the past and
could in the future downgrade our ratings. We cannot assure you that we will be able to maintain our current
credit ratings, and any additional actual or anticipated changes or downgrades in our credit ratings, including any
announcement that our ratings are under further review for a downgrade, may further impact us in a similar
manner and may have a negative impact on our liquidity, capital position, ability to hedge certain financial risks
and access to capital markets.
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 4.20% Senior Notes (“4.20% notes due 2020”) in September 2010, and our 2.75%
Senior Notes (“2.75 notes due 2017”) and 3.95% Senior Notes (“3.95% notes due 2022”) in June 2012 and
2.50% Convertible Senior (“2.50% senior convertible notes due 2021”) in March 2016, we have notes
outstanding in an aggregate principal amount of $2.3 billion that mature at specific dates in calendar years 2017,
2020, 2021 and 2022. In addition, we have entered into a credit facility with a borrowing capacity of $1.0 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. There is a risk that we may not be able to refinance existing debt or that the terms
of any refinancing may not be as favorable as the terms of our existing debt. Furthermore, if prevailing interest
rates or other factors at the time of refinancing result in higher interest rates upon refinancing, then the interest
expense relating to that refinanced indebtedness would increase. In addition, changes by any rating agency to our
outlook or credit rating could negatively affect the value of both our debt and equity securities and increase the
interest we pay on outstanding or future debt. These risks could adversely affect our financial condition and
results of operations.
Our software products, SaaS Offerings and website may be subject to intentional disruption that could
adversely impact our reputation and future sales.
Despite our precautions and significant ongoing investments to protect against security risks, data protection
breaches, cyber-attacks and other intentional disruptions of our products and offerings, we expect to be an
ongoing target of attacks specifically designed to impede the performance and availability of our products and
offerings and harm our reputation as a company. Similarly, experienced computer programmers may attempt to
penetrate our network security or the security of our website and misappropriate proprietary information or cause
interruptions of our services. Because the techniques used by such computer programmers to access or sabotage
networks change frequently and may not be recognized until launched against a target, we may be unable to
anticipate these techniques. The theft or unauthorized use or publication of our trade secrets and other
confidential business information as a result of such an event could adversely affect our competitive position,
reputation, brand and future sales of our products, and our customers may assert claims against us related to
resulting losses of confidential or proprietary information. Furthermore, our employees or contractors may, either
21