Symantec 2006 Annual Report Download - page 30

more frequently if events and circumstances warrant. The foregoing types of accounting charges may also be
incurred in connection with or as a result of other business acquisitions. The price of our common stock could
decline to the extent that our financial results are materially affected by the foregoing accounting charges.
Our effective tax rate may increase or fluctuate, which could increase our income tax expense and reduce
our net income.
Our effective tax rate could be adversely affected by several factors, many of which are outside of our
control, including:
‚ Changes in the relative proportions of revenues and income before taxes in the various jurisdictions in
which we operate that have differing statutory tax rates
‚ Changing tax laws, regulations, and interpretations in multiple jurisdictions in which we operate as well
as the requirements of certain tax rulings
‚ Changes in accounting and tax treatment of stock-based compensation
‚ The tax effects of purchase accounting for acquisitions and restructuring charges that may cause
fluctuations between reporting periods
‚ Tax assessments, or any related tax interest or penalties, could significantly affect our income tax
expense for the period in which the settlements take place
The price of our common stock could decline to the extent that our financial results are materially
affected by an adverse change in our effective tax rate.
We report our results of operations based on our determinations of the amount of taxes owed in the
various tax jurisdictions in which we operate. From time to time, we receive notices that a tax authority to
which we are subject has determined that we owe a greater amount of tax than we have reported to such
authority, and we are regularly engaged in discussions, and sometimes disputes, with these tax authorities. We
are engaged in disputes of this nature at this time. If the ultimate determination of our taxes owed in any of
these jurisdictions is for an amount in excess of the tax provision we have recorded or reserved for, our
operating results, cash flows, and financial condition could be adversely affected.
Fluctuations in our quarterly financial results have affected the price of our common stock in the past
and could affect our stock price in the future.
Our quarterly financial results have fluctuated in the past and are likely to vary significantly in the future
due to a number of factors, many of which are outside of our control and which could adversely affect our
operations and operating results. In addition, our acquisition of Veritas makes it more difficult for us to
predict, and securities analysts to develop expectations regarding, our future financial results due to the risks
associated with the complexity of our combined business and the integration of our management teams and
operations. If our quarterly financial results or our predictions of future financial results fail to meet the
expectations of securities analysts and investors, our stock price could be negatively affected. Any volatility in
our quarterly financial results may make it more difficult for us to raise capital in the future or pursue
acquisitions that involve issuances of our stock. Our operating results for prior periods may not be effective
predictors of our future performance.
Factors associated with our industry, the operation of our business, and the markets for our products may
cause our quarterly financial results to fluctuate, including:
‚ Reduced demand for any of our products
‚ Entry of new competition into our markets
‚ Competitive pricing pressure for one or more of our classes of products
‚ Our ability to timely complete the release of new or enhanced versions of our products
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