Symantec 2011 Annual Report Download - page 87

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 0.75% convertible senior notes (“0.75% Notes”) and 1.00% convertible senior
notes (“1.00% Notes”), collectively referred to as the Convertible Senior Notes in June 2006, and 2.75% senior
notes (“2.75% Notes”) and 4.20% senior notes (“4.20% Notes”), collectively referred to as the Senior Notes in
September 2010, we have notes outstanding in an aggregate principal amount of $2.7 billion that mature at specific
dates in calendar years 2011, 2013, 2015 and 2020. In addition, we have entered into a credit facility with a
borrowing capacity of $1 billion. From time to time in the future, we may also incur indebtedness in addition to the
amount available under our credit facility. Our maintenance of substantial levels of debt could adversely affect our
flexibility to take advantage of certain corporate opportunities and could adversely affect our financial condition
and results of operations. Of our outstanding Convertible Senior Notes, $600 million matures and is repayable in
June 2011 and $1.0 billion is due in June 2013. 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.
Adverse global economic events may harm our business, operating results and financial condition.
Adverse macroeconomic conditions could negatively affect our business, operating results or financial
condition under a number of different scenarios. During challenging economic times and periods of high
unemployment, current or potential customers may delay or forgo decisions to license new products or additional
instances of existing products, upgrade their existing hardware or operating environments (which upgrades are
often a catalyst for new purchases of our software), or purchase services. Customers may also have difficulties in
obtaining the requisite third-party financing to complete the purchase of our products and services. An adverse
macroeconomic environment could also subject us to increased credit risk should customers be unable to pay us, or
delay paying us, for previously purchased products and services. Accordingly, reserves for doubtful accounts and
write-offs of accounts receivable may increase. In addition, weakness in the market for end users of our products
could harm the cash flow of our distributors and resellers who could then delay paying their obligations to us or
experience other financial difficulties. This would further increase our credit risk exposure and, potentially, cause
delays in our recognition of revenue on sales to these customers.
In addition, the onset or continuation of adverse economic conditions may make it more difficult either to
utilize our existing debt capacity or otherwise obtain financing for our operations, investing activities (including
potential acquisitions) or financing activities. Specific economic trends, such as declines in the demand for PCs,
servers, and other computing devices, or softness in corporate information technology spending, could have an even
more direct, and harmful, impact on our business.
Our international operations involve risks that could increase our expenses, adversely affect our operating
results, and require increased time and attention of our management.
We derive a substantial portion of our revenues from customers located outside of the U.S. and we have
significant operations outside of the U.S., including engineering, sales, customer support, and production. We plan
to expand our international operations, but such expansion is contingent upon the financial performance of our
existing international operations as well as our identification of growth opportunities. Our international operations
are subject to risks in addition to those faced by our domestic operations, including:
• Potential loss of proprietary information due to misappropriation or laws that may be less protective of our
intellectual property rights than U.S. laws or that may not be adequately enforced
• Requirements of foreign laws and other governmental controls, including trade and labor restrictions and
related laws that reduce the flexibility of our business operations
• Regulations or restrictions on the use, import, or export of encryption technologies that could delay or
prevent the acceptance and use of encryption products and public networks for secure communications
• Local business and cultural factors that differ from our normal standards and practices, including business
practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act and other anti-
corruption laws and regulations
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