Danaher 2011 Annual Report Download - page 19

Table of Contents
which witnessed record levels of unemployment in some countries and extreme volatility in and tightening of the capital and credit markets. However,
uncertainty remains as to the overall rate and sustainability of the recovery, particularly in Europe, and we cannot assure you that we will not experience
further recessionary conditions and other adverse effects from broad economic trends, or that any improvements will be broad-based and will benefit the
markets we serve. The deterioration or instability of the economies and financial markets in the geographies in which we do business could adversely affect the
Company and its distributors, customers and suppliers, including having the effect of:
• reducing demand for our products and services, increasing order cancellations and resulting in longer sales cycles and slower adoption of new
technologies;
• increasing the difficulty in collecting accounts receivable and the risk of excess and obsolete inventories;
• increasing price competition in our served markets;
• resulting in supply interruptions, which could disrupt our ability to produce our products;
• increasing the risk of impairment of goodwill and other long-lived assets; and
• increasing the risk that counterparties to our contractual arrangements will become insolvent or otherwise unable to fulfill their contractual
obligations which, in addition to increasing the risks identified above, could result in preference actions against us 
In particular, the European debt crisis and the instability and uncertainty relating to the Euro could constrain government budgets, limit the financing
available to our suppliers and customers and adversely affect the economies and capital markets in Europe and other geographies, which could in turn
adversely affect demand for our products, the availability of supplies and the value of our Euro-denominated assets and obligations.
Although we have been able to continue accessing the commercial paper markets through the date of this report, there can be no assurances that the commercial
paper markets will remain available to us or that the lenders participating in our revolving credit facilities will be able to provide financing in accordance with
their contractual obligations.

In 2008, 2009 and 2011, we implemented significant restructuring activities across our businesses to adjust our cost structure. These restructuring activities
and our regular ongoing cost reduction activities (including in connection with the integration of acquired businesses) have the effect of reducing our available
talent, assets and other resources and could slow improvements in our products and technologies, adversely affect our ability to respond to customers and
limit our ability to increase production quickly as demand for our products increases. These circumstances could adversely impact our financial statements.

Our growth depends in part on the growth of the markets which we serve, and visibility into our markets is limited (particularly for markets into which we
sell through distribution). Our quarterly sales and profits depend substantially on the volume and timing of orders received during the fiscal quarter, which
are difficult to forecast. Any decline or lower than expected growth in our served markets could diminish demand for our products and services, which would
adversely affect our financial statements. Certain of our businesses operate in industries that may experience periodic, cyclical downturns. In addition, in
certain of our businesses product demand depends on customers’ capital spending budgets as well as government funding policies, and matters of public
policy as well as product and economic cycles can affect the spending decisions of these entities. Our product demand is also sensitive to changes in customer
order patterns, which may be affected by announced price changes, changes in incentive programs, new product introductions and customer inventory levels.
Any of these factors could adversely affect our growth and results of operations in any given period.


Our businesses operate in industries that are intensely competitive and have been subject to increasing consolidation. Because of the diversity of the products
and services we sell and the variety of markets we serve, we encounter a wide variety of competitors; please see “Item 1. Business – Competition” for
additional details. In order to compete effectively, we must retain longstanding relationships with major customers and continue to grow our business by
establishing relationships with new customers, continually developing new products and services to maintain and expand our brand recognition and
leadership position in various product and service categories and penetrate new markets, including in developing countries. Our failure to compete effectively
and/or pricing pressures resulting from competition may adversely impact our financial statements.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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