ADT 2012 Annual Report Download - page 116

Material adverse legal judgments, fines, penalties or settlements could adversely affect our financial
health and prevent us from fulfilling our obligations under our outstanding indebtedness.
We estimate that our available cash, our cash flow from operations and amounts available to us under our
revolving credit facility will be adequate to fund our operations and service our debt over both the short term and
the long term. However, material adverse legal judgments, fines, penalties or settlements arising from litigation
and similar contingencies could require additional funding. If such developments require us to obtain additional
funding, we cannot provide assurance that we will be able to obtain the additional funding that we need on
commercially reasonable terms or at all, which could have a material adverse effect on our financial condition,
results of operations and cash flows.
Such an outcome could have important consequences to holders of shares of our common stock. For
example, it could:
• require us to dedicate a substantial portion of our cash flow from operations to payments on our
indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital
expenditures, research and development efforts and other corporate purposes, including dividend
payments;
• increase our vulnerability to adverse economic and industry conditions;
• limit our flexibility in planning for, or reacting to, changes in our business and the markets in which we
operate;
• restrict our ability to introduce new technologies or exploit business opportunities;
• make it more difficult for us to satisfy our payment obligations with respect to our outstanding
indebtedness; and
• increase the difficulty and/or cost to us of refinancing our indebtedness.
Risks Relating to Our Common Stock
We cannot be certain that an active trading market for our common stock will be sustained, and our stock
price may fluctuate significantly.
Our common stock is listed on the NYSE. However, there can be no assurance that an active trading market
for our common stock will be sustained in the future. The lack of an active market may make it more difficult for
you to sell our common stock and could lead to the price of our common stock being depressed or more volatile.
We cannot predict the prices at which our common stock may trade. The market price of our common stock
may fluctuate widely, depending on many factors, some of which may be beyond our control, including:
• actual or anticipated fluctuations in our operating results due to factors related to our business;
• success or failure of our business strategy;
• our quarterly or annual earnings, or those of other companies in our industry;
• changes in our capital structure, including the amount of our indebtedness;
• our ability to obtain third-party financing as needed;
• announcements by us or our competitors of significant acquisitions or dispositions;
• changes in accounting standards, policies, guidance, interpretations or principles;
• the failure of securities analysts to cover our common stock;
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