Danaher (DHR) risk factors, FY2025 10-K

Business and Strategic Risks

1. 01Conditions in the global economy, the particular markets we serve and the financial markets can adversely affect our business and financial statements
2. 02We face intense competition and if we are unable to compete effectively, we may experience decreased demand and decreased market share. Even if we compete effectively, we may be required to reduce the prices we charge
3. 03Our growth depends in part on the timely development and commercialization, and customer acceptance, of new and enhanced products and services based on technological innovation26% rewritten
4. 04The healthcare industry and related industries that we serve have undergone, and are in the process of undergoing, significant changes in an effort to reduce (and increase the predictability of) costs, which can adversely affect our business and financial statements
5. 05Non-U.S. economic, political, legal, compliance, social and business factors can negatively affect our business and financial statements
6. 06International business risks have in the past and may in the future negatively affect our business and financial statements
7. 07Our growth can suffer if the markets into which we sell our products and services decline, do not grow as anticipated or experience cyclicality36% rewritten
8. 08Uncertainties with respect to the development, deployment, and use of AI in our business and products may result in harm to our business and reputation49% rewritten
9. 09Global health crises, pandemics, epidemics or other outbreaks can adversely impact certain elements of our business and financial statements37% rewritten
10. 10Certain of our businesses rely on relationships with business partners and other third-parties for development, supply and/or marketing of certain products, potential products and technologies, and such business partners or other third-parties could fail to perform sufficiently39% rewritten
11. 11Failing to consummate acquisitions at our historical rate and at appropriate prices, and to make appropriate investments that support our long-term strategy, can negatively impact our business22% rewritten
12. 12Our acquisition of businesses, investments, joint ventures and other strategic relationships can negatively impact our business and financial statements
13. 13The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities
14. 14Divestitures or other dispositions could negatively impact our business, and contingent liabilities from businesses that we or our predecessors have disposed of could adversely affect our business and financial statements
15. 15We could incur significant liability if our dispositions of any of Fortive Corporation, Envista Holdings Corporation or Veralto Corporation is determined to be a taxable transaction

Operational Risks

1. 16Significant disruptions in, or breaches in security of, our IT systems or data or violation of data privacy laws can adversely affect our business and financial statements57% rewritten
2. 17In addition, any businesses or technologies that we acquire may exacerbate the risks set forth above, for example due to acquired vulnerabilities or threats that were unknown or were ineffectively managedNew
3. 18Defects and unanticipated use or inadequate disclosure with respect to our products or services, or allegations thereof, can adversely affect our business and financial statements
4. 19If we suffer loss to our facilities, supply chains, distribution systems or IT systems due to catastrophe or other events, our operations could be seriously harmed
5. 20Climate change, legal or regulatory measures to address climate change and other sustainability topics and any inability on our part to address the range of stakeholder expectations relating to climate change and other sustainability topics may negatively affect us24% rewritten
6. 21The manufacture of many of our products is a highly exacting and complex process, and if we directly or indirectly encounter problems manufacturing products, our business and financial statements could suffer
7. 22Our financial results are subject to fluctuations in the cost and availability of the supplies that we use in, and the labor we need for, our operations
8. 23Adverse changes in our relationships with, or the financial condition, performance, purchasing patterns or inventory levels of, key distributors and other channel partners can adversely affect our business and financial statements
9. 24Our success depends on our ability to recruit, retain and motivate talented employees
10. 25Intellectual Property Risks
11. 26Third-parties from time to time claim that we are infringing or misappropriating their intellectual property rights and we could suffer significant litigation expenses, losses or licensing expenses or be prevented from selling products or services

Financial and Tax Risks

1. 27We may be required to recognize impairment charges for our goodwill and other intangible assets25% rewritten
2. 28Foreign currency exchange rates can adversely affect our financial statements
3. 29Changes in our tax rates or exposure to additional income tax liabilities or assessments can affect our profitability. In addition, audits by tax authorities can result in additional tax payments for prior periods
4. 30Changes in tax law relating to multinational corporations could adversely affect our tax position
5. 31Military conflicts (such as the conflicts between Russia and Ukraine and in the Middle East) can adversely affect our business and financial statements69% rewritten

Legal, Regulatory, Compliance and Reputational Risks

1. 32Significant developments or changes in national laws or policies to protect or promote domestic interests and/or address foreign competition can have an adverse effect on our business and financial statements88% rewritten
2. 33Our business and financial statements can be impaired by improper conduct by any of our employees, agents or business partners
3. 34In addition to the environmental, health, safety, healthcare, medical device, anticorruption, data privacy, AI, sustainability and other regulations noted elsewhere in this Annual Report, our businesses are subject to extensive regulation by U.SNew
4. 35We are subject to or otherwise responsible for a variety of litigation and other legal and regulatory proceedings in the course of our business that can adversely affect our business and financial statements
5. 36Our products can be subject to human clinical trials, the results of which may be unexpected, or perceived as unfavorable by the market, and could adversely affect our business and financial statements23% rewritten
6. 37Off-label marketing of our products could result in substantial penalties
7. 38Certain modifications to our products may require new 510(k) clearances or other marketing authorizations and may require us to recall or cease marketing our products
8. 39Our operations, products and services expose us to the risk of environmental, health and safety liabilities, costs and violations that could adversely affect our business and financial statements
9. 40Changes in governmental regulations can reduce demand for our products or services or increase our expenses
10. 41Exclusive forum provisions in our By-laws could limit our stockholders’ ability to choose their preferred judicial forum for disputes with us or our directors, officers or employees