Danaher 2009 Annual Report Download - page 26

Table of Contents
International economic, political, legal and business factors could negatively affect our results of operations, cash flows and financial condition.
In 2009, approximately 52% of our sales were derived from customers outside the U.S. In addition, many of our manufacturing operations, suppliers and
employees are located outside the U.S. Since our growth strategy depends in part on our ability to further penetrate markets outside the U.S. and increase the
localization of our products and services, we expect to continue to increase our sales and presence outside the U.S., particularly in emerging markets. Our
international business is subject to risks that are customarily encountered in non-U.S. operations, including:
• interruption in the transportation of materials to us and finished goods to our customers;
• differences in terms of sale, including payment terms;
• changes in a specific country’s or region’s political or economic conditions;
• trade protection measures and import or export licensing requirements;
• unexpected changes in laws or regulatory requirements, including negative changes in tax laws;
• limitations on ownership and on repatriation of earnings;
• difficulty in staffing and managing widespread operations;
• differing labor regulations;
• differing protection of intellectual property; and
• wars and terrorist activities and the U.S. and international response thereto.
Any of these risks could negatively affect our results of operations, cash flows, financial condition and growth.
If we suffer loss to our facilities, distribution systems or information technology systems due to catastrophe, our operations could be seriously
harmed.
Our facilities, distribution systems and information technology systems are subject to catastrophic loss due to fire, flood, terrorism or other natural or man-
made disasters. If any of these facilities or systems were to experience a catastrophic loss, it could disrupt our operations, delay production and shipments and
result in large expenses to repair or replace the facility.
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None
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Our corporate headquarters are located in Washington, D.C. in a facility that we lease. At December 31, 2009, we had approximately 213 significant
manufacturing and distribution facilities worldwide. 102 of these facilities are located in the United States and 111 are located outside the United States,
primarily in Europe and to a lesser extent in Asia, the rest of North America, Latin America and Australia. These facilities cover approximately 20 million
square feet, of which approximately 12 million square feet are owned and approximately 8 million square feet are leased. Particularly outside the United States,
facilities often serve more than one business segment and may be used for multiple purposes, such as administrative, sales, manufacturing, warehousing
and/or distribution. The number of significant facilities by business segment is:
• Professional Instrumentation, 68;
• Medical Technologies, 55;
• Industrial Technologies, 63; and
• Tools & Components, 27.
We consider our facilities suitable and adequate for the purposes for which they are used and do not anticipate difficulty in renewing existing leases as they
expire or in finding alternative facilities. Please refer to Note 12 in the Consolidated Financial Statements included in this Annual Report for additional
information with respect to our lease commitments.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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