Danaher 2011 Annual Report Download - page 13

Table of Contents
single supplier is material, although for some components that require particular specifications there may be a limited number of suppliers that can readily
provide such components. We utilize a number of techniques to address potential disruption in our supply chain, including in certain cases the use of
alternative materials and qualification of multiple supply sources. During 2011 we had no raw material shortages that had a material effect on our business.
For a further discussion of risks related to the materials and components required for our operations, please refer to “Item 1A. Risk Factors.”
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We own numerous patents, trademarks, copyrights, trade secrets and licenses to intellectual property owned by others. Although in aggregate our intellectual
property is important to our operations, we do not consider any single patent, trademark, copyright, trade secret or license to be of material importance to any
segment or to the business as a whole. From time to time we engage in litigation to protect our intellectual property rights. For a discussion of risks related to
our intellectual property, please refer to “Item 1A. Risk Factors.” All capitalized brands and product names throughout this document are trademarks owned
by, or licensed to, Danaher or its subsidiaries.
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Although our businesses generally operate in highly competitive markets, our competitive position cannot be determined accurately in the aggregate or by
segment since none of our competitors offer all of the same product lines or serve all of the same markets as we do. Because of the diversity of the products we
sell and the variety of markets we serve, we encounter a wide variety of competitors, including well-established regional competitors, competitors who are more
specialized than we are in particular markets, as well as larger companies or divisions of larger companies with substantial sales, marketing, research, and
financial capabilities. We are facing increased competition in a number of our served markets as a result of the entry of new, large companies into certain
markets, the entry of competitors based in low-cost manufacturing locations, and increasing consolidation in particular markets. The number of competitors
varies by product line. Our management believes that we have a market leadership position in many of the markets we serve. Key competitive factors vary
among our businesses and product lines, but include the specific factors noted above with respect to each particular business and typically also include price,
quality, delivery speed, service and support, innovation, distribution network, breadth of product and service offerings and brand name recognition. For a
discussion of risks related to competition, please refer to “Item 1A. Risk Factors.”
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General economic conditions impact our business and financial results, and certain of our businesses experience seasonal and other trends related to the
industries and end-markets that they serve. For example, European sales are often weaker in the summer months, sales to the United States government are
often stronger in the third calendar quarter, medical and capital equipment sales are often stronger in the fourth calendar quarter and sales to original
equipment manufacturers are often stronger immediately preceding and following the launch of new products. However, as a whole, we are not subject to
material seasonality.
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We maintain an adequate level of working capital to support our business needs. There are no unusual industry practices or requirements relating to working
capital items. In addition, our sales and payment terms are generally similar to those of our competitors.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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