Veralto (VLTO) risk factors, FY2024 10-K

Business and Strategic Risks

1. 01Conditions in the global economy, including military conflicts, 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 innovation
4. 04Non-U.S. economic, political, legal, compliance, social and business factors can negatively affect our business and financial statements
5. 05Our growth can suffer if the markets into which we sell our products and services decline, do not grow as anticipated or experience cyclicality
6. 06Any inability to consummate acquisitions at our historical rate and at appropriate prices, and to make appropriate investments that support our long-term strategy, could negatively impact our business
7. 07Our acquisition or divestiture of businesses, investments, joint ventures and other strategic relationships can negatively impact our business and financial statements

Operational Risks

1. 08Significant disruptions in, or breaches in security of, our information technology systems or data or violation of data privacy laws can adversely affect our business and financial statements
2. 09Defects, unanticipated use or inadequate disclosure with respect to our products or services, or allegations thereof, can adversely affect our business and financial statements
3. 10If we suffer loss to our facilities, supply chains, distribution systems or information technology systems due to catastrophe or other events, our operations could be seriously harmed
4. 11Climate change and sustainability matters, legal or regulatory measures to address climate change and sustainability matters, and any inability on our part to address related stakeholder expectations may negatively affect us
5. 12Our 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
6. 13Our success depends on our ability to recruit, retain and motivate talented employees representing diverse backgrounds, experiences and skill sets
7. 14Our restructuring actions can have long-term adverse effects on our business and financial statements
8. 15Intellectual Property Risks
9. 16Third 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. 17We may be required to recognize impairment charges for our goodwill and other intangible assets
2. 18Foreign currency exchange rates can adversely affect our financial statements
3. 19Changes 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. 20Changes in tax law relating to multinational corporations could adversely affect our tax position

Legal, Regulatory, Compliance and Reputational Risks

1. 21Our businesses are subject to extensive regulation; failure to comply with those regulations could adversely affect our business and financial statements
2. 22We 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
3. 23Our 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
4. 24Certain provisions in Veralto’s amended and restated certificate of incorporation and bylaws, and of Delaware law, may prevent or delay an acquisition of Veralto, which could decrease the trading price of Veralto’s common stock
5. 25The forum selection provisions under Veralto’s amended and restated certificate of incorporation could discourage lawsuits against Veralto and Veralto’s directors, officers, employees and stockholders
6. 26incorporation further provides that, unless Veralto consents otherwise, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act
7. 27If we are unable to maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may be negatively affected
8. 28As an independent, publicly traded company, Veralto may not enjoy the same benefits that Veralto did as a part of Danaher
9. 29Potential indemnification liabilities to Danaher pursuant to the separation agreement could materially and adversely affect Veralto’s business and financial statements
10. 30Veralto may be affected by significant restrictions, including on its ability to engage in certain corporate transactions for a two-year period after the distribution in order to avoid triggering significant tax-related liabilities
11. 31Veralto or Danaher may fail to perform under various transaction agreements that were executed as part of the separation or Veralto may fail to have necessary systems and services in place when certain of the transaction agreements expire