Adobe 2011 Annual Report Download - page 38

38
which we rely for operating cash management. Any of these events would likely harm our business, results of operations and
financial condition.
Political instability in any of the major countries in which we do business would also likely harm our business, results of
operations and financial condition.
We may not realize the anticipated benefits of past or future acquisitions, and integration of these acquisitions may disrupt our
business and management.
We have in the past and may in the future acquire additional companies, products or technologies. Recently, we acquired
Omniture in October 2009, Day in October 2010, a number of smaller business combinations and asset acquisitions in fiscal 2011
and Efficient Frontier in January 2012, as well as other smaller business acquisitions. We may not realize the anticipated benefits
of an acquisition, each of which involves numerous risks. These risks include:
• difficulty in integrating the operations and personnel of the acquired company;
• difficulty in effectively integrating the acquired technologies, products or services with our current technologies,
products or services;
• difficulty in maintaining controls, procedures and policies during the transition and integration;
• entry into markets in which we have no or limited direct prior experience and where competitors in such markets have
stronger market positions;
• disruption of our ongoing business and distraction of our management and employees from other opportunities and
challenges;
• difficulty integrating the acquired company’s accounting, management information, human resources and other
administrative systems;
• inability to retain key technical and managerial personnel of the acquired business;
• inability to retain key customers, distributors, vendors and other business partners of the acquired business;
• inability to achieve the financial and strategic goals for the acquired and combined businesses;
• inability to take advantage of anticipated tax benefits as a result of unforeseen difficulties in our integration activities;
• incurring acquisition-related costs or amortization costs for acquired intangible assets that could impact our operating
results;
• potential additional exposure to fluctuations in currency exchange rates;
• potential impairment of our relationships with employees, customers, partners, distributors or third-party providers of
our technologies, products or services;
• potential failure of the due diligence processes to identify significant problems, liabilities or other shortcomings or
challenges of an acquired company or technology, including but not limited to, issues with the acquired company’s
intellectual property, product quality or product architecture, data back-up and security, privacy practices, revenue
recognition or other accounting practices, employee, customer or partner issues or legal and financial contingencies;
• unexpected changes in, or impositions of, legislative or regulatory requirements impacting the acquired business;
• exposure to litigation or other claims in connection with, or inheritance of claims or litigation risk as a result of, an
acquisition, including but not limited to, claims from terminated employees, customers, former stockholders or other
third parties;
• incurring significant exit charges if products or services acquired in business combinations are unsuccessful;
• potential inability to assert that internal controls over financial reporting are effective;
• potential inability to obtain, or obtain in a timely manner, approvals from governmental authorities, which could delay
or prevent such acquisitions;
Table of Contents