LifeLock 2013 Annual Report Download - page 23

•challenges inherent in effectively managing an increased number of employees in diverse locations;
•failure of acquired businesses to achieve expected results;
•the risk of impairment charges related to potential write-downs of acquired assets in future acquisitions; and
•difficulty of establishing uniform standards, controls, procedures, policies, and information systems.
We may not succeed in addressing these or other risks or any other problems encountered in connection with the integration of any acquired business.
The inability to integrate successfully the operations, technology, and personnel of any acquired business, or any significant delay in achieving integration,
could have a material adverse effect on our business, results of operations, reputation, and prospects, and on the market price of our common stock.

In December 2013, we completed our acquisition of Lemon, which conducts its software development operations in Argentina. We have limited
experience with international operations, and our ability to manage our business and conduct our operations internationally requires management attention and
resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs,
legal systems, alternative dispute systems, regulatory systems, and commercial infrastructures. Operating internationally may subject us to additional risks
and may increase our exposure to risks that we currently face, including risks associated with the following:
·political, economic, and social instability;
·restrictions on foreign ownership and investments, and stringent foreign exchange controls that might prevent us from repatriating cash
earned in countries outside the United States. or from easily funding our international operations;
·import and export requirements that may prevent us from efficiently operating our international subsidiary;
·currency exchange rate fluctuations;
·uncertainty regarding liability for services and content, including uncertainty as a result of local laws and lack of legal precedent;
·different employee/employer relationships, workers’ councils and labor unions, and other challenges caused by distance, language, and
cultural differences, which may make it difficult to conduct our international operations;
·the enforceability of our intellectual property rights;
·potentially adverse tax consequences due to changes in the tax laws of the United States or the foreign jurisdictions in which we operate; and
·higher costs of doing business internationally.
In addition, compliance with complex foreign and U.S. laws and regulations that apply to our international operations increases our cost of doing
business in international jurisdictions. These numerous and sometimes conflicting laws and regulations include internal control and disclosure rules, data
privacy and filtering requirements, anti-corruption laws, such as the Foreign Corrupt Practices Act and other local laws prohibiting corrupt payments to
governmental officials, and anti-competition regulations, among others. Violations of these laws and regulations could result in fines and penalties, criminal
sanctions against us, our officers, or our employees, prohibitions on the conduct of our business, and could also materially affect our brand, our ability to
attract and retain employees, our business, and our operating results. Although we have implemented policies and procedures designed to ensure compliance
with these laws and regulations, there can be no assurance that our employees, contractors, or agents will not violate our policies.
Furthermore, since we conduct an aspect of our operations in currencies other than U.S. dollars but report our financial results in U.S. dollars, we face
exposure to fluctuations in currency exchange rates.

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Our business and the information we use in our business is subject to a wide variety of federal, state, and local laws and regulations, including the
FCRA, the Gramm-Leach-Bliley Act, the FTC Act and comparable state laws that are patterned after the FTC Act, and other laws governing credit
information, consumer privacy and marketing, and servicing of consumer products and services. In addition, our business is subject to the FTC Order, as
well as the companion orders with 35 states’ attorneys general that we entered into in March 2010. These laws, regulations, and consent decrees cover, among
other things, advertising, automatic subscription renewal, broadband residential Internet access, consumer protection, content, copyrights, credit card
processing procedures, data protection, distribution, electronic contracts, member privacy, pricing, sales and other procedures, tariffs, and taxation. In
addition, it is unclear how existing laws and regulations governing issues such as property ownership, sales and other taxes, and personal privacy apply to the
Internet. We incur significant costs to operate our business and monitor our compliance with these laws, regulations, and consent decrees. Any of these laws
and regulations is subject to revision, and we cannot predict the impact of such changes on our business. Complying with these varying requirements, the
evolving nature of all of these laws and regulations, the evolving nature of various governmental bodies’ enforcement efforts, and the possibility of new laws in
this area, could increase
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