Table of Contents protectionism  U.S. relations with the governments of the foreign countries in which we operate  foreign regulatory requirements or changes in such requirements  changes in local health care payment systems and health care delivery systems  local product preferences and requirements  longer payment terms for account receivables than we experience in the U.S.  difficulty in establishing  staffing and managing foreign operations  changes to international trade agreements and treaties  changes in tax laws  weakening or loss of the protection of intellectual property rights in some countries  and import or export licensing requirements. The success of our operations outside the United States also depends  in part  on our ability to make necessary infrastructure enhancements to  among other things  our production facilities and sales and distribution networks. These and other factors may adversely impact our ability to pursue our growth strategy in these markets. In addition  our international operations are governed by the U.S. Foreign Corrupt Practices Act and similar anti-corruption laws outside the U.S. Global enforcement of anti-corruption laws has increased substantially in recent years  with more enforcement proceedings by U.S. and foreign governmental agencies and the imposition of significant fines and penalties. While we have implemented policies and procedures to enhance compliance with these laws  our international operations  which often involve customer relationships with foreign governments  create the risk that there may be unauthorized payments or offers of payments made by employees  consultants  sales agents or distributors. Any alleged or actual violations of these laws may subject us to government investigations and significant criminal or civil sanctions and other liabilities  and negatively affect our reputation. Changes in U.S. policy regarding international trade  including import and export regulation and international trade agreements  could also negatively impact our business. The U.S. has imposed tariffs on steel and aluminum as well as on goods imported from China and certain other countries  which has resulted in retaliatory tariffs by China and other countries. Additional tariffs imposed by the U.S. on a broader range of imports  or further retaliatory trade measures taken by China or other countries in response  could result in an increase in supply chain costs that we may not be able to offset or that otherwise adversely impact our results of operations. The United Kingdom’s (“UK”) departure from the European Union (“EU”) (commonly known as “Brexit”) has created uncertainties affecting business operations in the UK  the EU and a number of other countries  including with respect to compliance with the regulatory regimes regarding the labeling and registration of the products we sell in these markets. The UK formally left the EU on January 31  2020. Pursuant to the withdrawal arrangement agreed between the UK and the EU  there is a transition period through December 31  2020 for the parties to negotiate their future trading relationship. During this transition period  the UK continues to follow the EU’s rules and its trading relationship with the EU remains the same. While we have taken proactive steps to mitigate any disruption to our operations  we could face increased costs  volatility in exchange rates  market instability and other risks  depending on the outcome of the negotiations regarding the future EU/UK trading relationship. We sell products to researchers at pharmaceutical and biotechnology companies  academic institutions  government laboratories and private foundations. Research and development spending of our customers can fluctuate based on spending priorities and general economic conditions. A number of these customers are also dependent for their funding upon grants from U.S. government agencies  such as the U.S. National Institutes of Health (“NIH”) and agencies in other countries. The level of government funding of research and development is unpredictable. For instance  there have been instances where NIH grants have been frozen or otherwise unavailable for extended periods. The availability of governmental research funding may be adversely affected by economic conditions and governmental spending reductions. Any reduction or delay in governmental funding could cause our customers to delay or forego purchases of our products. Our ability to compete effectively depends upon our ability to attract and retain executives and other key employees. Competition for experienced employees  particularly for persons with specialized skills  can be Reductions in customers’ research budgets or government funding may adversely affect our business. We need to attract and retain key employees to be competitive. 13