Symantec 2013 Annual Report Download - page 116

• Our OEM partners are generally not subject to minimum sales requirements or any obligation to
market our products to their customers
• Our OEM partners may terminate or renegotiate their arrangements with us and new terms may be less
favorable due to competitive conditions in our markets and other factors
• Sales through our OEM partners are subject to changes in general economic conditions, strategic
direction, competitive risks, and other issues that could result in a reduction of OEM sales
• The development work that we must generally undertake under our agreements with our OEM partners
may require us to invest significant resources and incur significant costs with little or no assurance of
ever receiving associated revenues
• The time and expense required for the sales and marketing organizations of our OEM partners to
become familiar with our products may make it more difficult to introduce those products to the market
• Our OEM partners may develop, market, and distribute their own products and market and distribute
products of our competitors, which could reduce our sales
If we fail to manage our sales and distribution channels successfully, these channels may conflict with one
another or otherwise fail to perform as we anticipate, which could reduce our sales and increase our expenses as
well as weaken our competitive position. Some of our distribution partners have experienced financial difficulties
in the past, and if our partners suffer financial difficulties in the future because of general economic conditions or
for other reasons, these partners may delay paying their obligations to us and we may have reduced sales or
increased bad debt expense that could adversely affect our operating results. In addition, reliance on multiple
channels subjects us to events that could cause unpredictability in demand, which could increase the risk that we
may be unable to plan effectively for the future, and could result in adverse operating results in future periods.
Changes in industry structure and market conditions could lead to charges related to discontinuances of
certain of our products or businesses and asset impairments.
In response to changes in industry and market conditions, we may be required to strategically reallocate our
resources and consider restructuring, disposing of, or otherwise exiting businesses. Any decision to limit
investment in or dispose of or otherwise exit businesses may result in the recording of special charges, such as
inventory and technology-related write-offs, workforce reduction costs, charges relating to consolidation of
excess facilities, or claims from third parties who were resellers or users of discontinued products. Our estimates
with respect to the useful life or ultimate recoverability of our carrying basis of assets, including purchased
intangible assets, could change as a result of such assessments and decisions. Although in certain instances, our
supply agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business
needs prior to firm orders being placed, our loss contingencies may include liabilities for contracts that we cannot
cancel, reschedule or adjust with contract manufacturers and suppliers. Further, our estimates relating to the
liabilities for excess facilities are affected by changes in real estate market conditions. Additionally, we are
required to evaluate goodwill impairment on an annual basis and between annual evaluations in certain
circumstances, and future goodwill impairment evaluations may result in a charge to earnings.
In the fourth quarter of fiscal 2013 we announced a new strategy designed to drive organic growth, simplify
our operating model and concentrate our focus on selected key areas. We expect this plan to involve significant
transitions as we, among other things, eliminate duplicative organization and operating structures. We will incur
significant restructuring charges as we implement these activities. The changes to our business model may be
disruptive, and the revised model that we adopt may not be more efficient or effective than the aspects of our
business model that are being revised. Our restructuring activities, including any related charges and related
headcount reduction, could have a material adverse effect on our business, operating results, and financial
condition.
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