Citrix 2013 Annual Report Download - page 30

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• infringement actions brought by third-party licensees;
• that third parties will create solutions that directly compete with our products; and
• termination or expiration of the license.
If we lose or are unable to maintain any of these third-party licenses or are required to modify software obtained under
third-party licenses, it could delay the release of our products. Any delays could have a material adverse effect on our business,
results of operations and financial condition.
RISKS RELATED TO OUR COMMON STOCK AND EXTERNAL FACTORS
Natural disasters or other unanticipated catastrophes that result in a disruption of our operations could negatively impact
our results of operations.
Our worldwide operations are dependent on our network infrastructure, internal technology systems and website.
Significant portions of our computer equipment, intellectual property resources and personnel, including critical resources
dedicated to research and development and administrative support functions are presently located at our corporate headquarters
in Fort Lauderdale, Florida, an area of the country that is particularly prone to hurricanes, and at our various locations in
California, an area of the country that is particularly prone to earthquakes. We also have operations in various domestic and
international locations that expose us to additional diverse risks. The occurrence of natural disasters, such as hurricanes, floods
or earthquakes, or other unanticipated catastrophes, such as telecommunications failures, cyber-attacks, fires or terrorist attacks,
at any of the locations in which we or our key partners, suppliers and customers do business, could cause interruptions in our
operations. For example, hurricanes have passed through southern Florida causing extensive damage to the region. In addition,
even in the absence of direct damage to our operations, large disasters, terrorist attacks or other casualty events could have a
significant impact on our partners', suppliers' and customers' businesses, which in turn could result in a negative impact on our
results of operations. Extensive or multiple disruptions in our operations, or our partners', suppliers' or customers' businesses,
due to natural disasters or other unanticipated catastrophes could have a material adverse effect on our results of operations.
Our investment portfolio has been subject to impairment charges due to adverse capital market conditions, financing
challenges encountered by private companies we have invested in and may be further adversely impacted by volatility in the
capital markets.
Our investment portfolio as of December 31, 2013 primarily consisted of agency securities, corporate securities,
government securities, commercial paper and municipal securities. As a result of adverse financial market conditions in recent
years, investments in some financial instruments posed risks arising from liquidity and credit concerns. Future adverse market
conditions and volatility could create similar risks for investments in financial instruments. Although we follow an established
investment policy and seek to minimize the credit risk associated with investments by investing primarily in investment grade,
highly liquid securities and by limiting exposure to any one issuer depending on credit quality, we cannot give any assurances
that the assets in our investment portfolio will not lose value, become impaired, or suffer from illiquidity.
Future market conditions and volatility could require us to record impairment charges for other-than-temporary declines
in fair market value in our available-for-sale investments, which could adversely affect our results of operations. Moreover,
fluctuations in economic and market conditions could adversely affect the market value of our investments, and we could lose
some of the principal value of our investment portfolio. A total loss of an investment, dependent on an individual security's par
value, or a significant decline in the value of our investment portfolio could adversely affect our financial condition.
In addition, we invest in private companies to further our strategic objectives and support our key business initiatives.
Such investments include equity or debt instruments, and many of these instruments are non-marketable at the time of our
initial investment. The companies in which we invest may fail or lose value because they may not be able to secure additional
funding, obtain favorable investment terms for future financings, or participate in liquidity events such as public offerings,
mergers, and private sales. If any of these private companies fail or lose value, we could be required to impair or write-off all or
part of our investment in that company.
Changes in our tax rates or our exposure to additional income tax liabilities could affect our operating results and financial
condition.
Our future effective tax rates could be favorably or unfavorably affected by changes in the valuation of our deferred tax
assets and liabilities, the geographic mix of our revenue, or by changes in tax laws or their interpretation. Significant judgment
is required in determining our worldwide provision for income taxes. In addition, we are subject to the continuous examination
of our income tax returns by tax authorities, including the Internal Revenue Service, or the IRS. We regularly assess the
likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes.