Waters (WAT) risk factors, FY2024 10-K

RISKS RELATED TO MACROECONOMIC CONDITIONS

1. 01in the value of the U.S. dollar relative to certain foreign currencies, particularly the euro, Japanese yen, British pound and Chinese renminbi, could have a material adverse effect or benefit on the Company’s results of operations or financial condition
2. 02Global economic conditions may have an adverse effect on the demand for, and supply of, the Company’s products and harm the Company’s financial results
3. 03Disruption in worldwide financial markets could adversely impact the Company’s access to capital and financial condition
4. 04Public health crises, epidemics or pandemics have had, and could in the future have, a negative impact on the Company’s business and operations

RISKS RELATED TO OUR BUSINESS

1. 05The Company’s financial results are subject to changes in customer demand, which may decrease for a number of reasons, many beyond the Company’s control
2. 06Strategies for organic growth require developing new technologies and bringing these new technologies to market, which could negatively impact the Company’s financial results
3. 07Issues and uncertainties related to the development, deployment and use of artificial intelligence in the Company’s business operations and products may result in harm to the Company’s reputation, regulatory action or legal liability
4. 08The Company may face risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures
5. 09The Company’s software or hardware may contain coding or manufacturing errors that could impact their function, performance and security, and result in other negative consequences
6. 10Disruption of operations, including at the Company’s manufacturing facilities, or disruption or failure of the Company’s key technology systems could have a material impact on the Company’s business, results of operations and financial condition
7. 11Failure to adequately protect intellectual property could have materially adverse effects on the Company’s results of operations or financial condition
8. 12The Company’s business would suffer if the Company were unable to acquire adequate sources of supply
9. 13The Company’s sales would deteriorate if the Company’s outside contractors fail to provide necessary components or modules
10. 14The Company’s business could be harmed by actions of third-party sales intermediaries and other third parties that sell our products
11. 15The Company is subject to laws and regulations governing government contracts, and failure to address these laws and regulations or comply with government contracts could harm its business by leading to a reduction in revenues associated with these customers
12. 16The Company’s financial results are subject to unexpected shifts in pre-tax income between tax jurisdictions, changing application of tax law and tax audit examinations
13. 17The Company may be required to recognize impairment charges for our goodwill and other intangible assets

RISKS RELATED TO HUMAN CAPITAL MANAGEMENT

1. 18We may not be able to attract and retain qualified employees
2. 19The loss of key members of management and the risks inherent in succession planning could adversely affect the Company’s results of operations or financial condition

RISKS RELATED TO CYBERSECURITY AND DATA PRIVACY

1. 20Disruption, cyber-attack or unforeseen problems with the security, maintenance or upgrade of the Company’s information and web-based systems could have an adverse effect on the Company’s business strategy, results of operations and financial condition
2. 21The Company is subject to varying data privacy laws and regulations, and a violation of such laws and regulations could have a negative impact on the Company’s business, results of operations and financial condition

RISKS RELATED TO COMPLIANCE, REGULATORY OR LEGAL MATTERS

1. 22Changes in governmental regulations and compliance failures could harm the Company’s business
2. 23The Company may be harmed by improper conduct of any of our employees, agents or business partners
3. 24Environmental, social and corporate governance (“ESG”) issues, including those related to climate change and sustainability, may have an adverse effect on our business, financial condition and results of operations and damage our reputation
4. 25The Company is subject to or otherwise responsible for a variety of litigation and other legal and regulatory proceedings in the ordinary course of business that can adversely affect our business, results of operations and financial condition
5. 26The effects of climate change could harm the Company’s business
6. 27Estimates and assumptions made in accounting for the Company’s results from operations are dependent on future results, which involve significant judgments and may be imprecise and may differ materially from actual results
7. 28The Company’s financial condition and results of operations could be adversely affected by changes to the Company’s retirement plans or retirement plan assets
8. 29The Company’s financial condition and results of operations could be adversely affected if the Company is unable to maintain a sufficient level of cash flow
9. 30Debt covenants, and the Company’s failure to comply with them, could negatively impact the Company’s capital and financial results