The Accelera segment underwent a strategic review in Q4 2024 to streamline operations and refocus investments due to slower adoption of certain zero-emission solutions. This resulted in charges related to inventory write-downs and asset impairments.

Cummins completed the divestiture of its remaining ownership in Atmus in March 2024, resulting in a $1.3 billion gain. This move is part of a broader strategy to reposition the company's portfolio.

Cummins continues to invest in the joint venture, Amplify Cell Technologies LLC, with $211 million contributed as of December 31, 2024, and a maximum remaining required contribution of $619 million. This investment signals a commitment to battery cell production for electric commercial vehicles.

Cummins reached Settlement Agreements with the EPA, CARB, DOJ and the California Attorney General's Office to resolve regulatory civil claims. The company made $1.9 billion in payments required by the Settlement Agreements in the second quarter of 2024.

The Board authorized an increase to the quarterly dividend of approximately 8 percent from $1.68 per share to $1.82 per share, demonstrating confidence in the company's financial health and future prospects.

Cummins invested $1.4 billion in research and development in 2024, focusing on future critical technologies and products including electrified power systems and hydrogen production technologies.

Despite reaching Settlement Agreements, Cummins acknowledges the risk of incurring additional claims, costs, and expenses related to emissions compliance, including regulatory action and collateral litigation.

The company's products are subject to extensive statutory and regulatory requirements that can significantly increase costs. There is also increased scrutiny from regulatory agencies and unpredictability in the adoption, implementation and enforcement of emission standards.

Changes in international trade laws, regulations, and policies could adversely impact demand for the company's products and its competitive position. Embargoes, sanctions, and export controls could limit sales.

PACCAR is Cummins' largest customer, accounting for 16% of consolidated net sales. The loss of this customer or a significant decline in their production level would have an adverse effect.

The development of new technologies may materially reduce the demand for our current products and services. The company is investing in new products and technologies, including electrolyzers for hydrogen production and electrified power systems and related components and subsystems.

The markets in which the company operates are highly competitive. The company competes worldwide with a number of other manufacturers and distributors that produce and sell similar products.

The company is vulnerable to raw material, transportation and labor price fluctuations and supply shortages, which impacted and could continue to impact results of operations, financial condition and cash flows.

The company faces the challenge of accurately aligning its capacity with demand. If the company does not accurately align its manufacturing capabilities with demand it could have a material adverse effect on its results of operations, financial condition and cash flows.

Rising interest rates could have a dampening effect on overall economic activity and/or the financial condition of our customers, either or both of which could negatively affect customer demand for our products and our customers' ability to repay obligations to us.

There can be no guarantee of the future market acceptance and investment returns with respect to our planned products, which will face competition from an array of other technologies and manufacturers.

The company's IT environment and products are exposed to potential security breaches or other disruptions which may adversely impact our competitive position, reputation, results of operations, financial condition and cash flows.

The company may use artificial intelligence in our business and in our products, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.

The company plans to spend an estimated $1.4 billion to $1.5 billion in 2025 on capital expenditures with over 65 percent of these expenditures expected to be invested in North America.

In February 2024, the company issued $2.25 billion in long-term debt to pay down higher cost debt, finance the Settlement Agreements payments and improve our overall liquidity.

The company intends to repurchase outstanding shares from time to time to enhance shareholder value. The dollar value remaining available for future purchases under the 2019 program at December 31, 2024, was $218 million.

The company's environmental sustainability strategy includes nine specific goals to achieve by 2030, including science-based greenhouse gas (GHG) reduction targets for newly sold products and facilities, as well as aspirational targets for 2050.

The Board of Directors (the Board) and the senior management team oversee our top risks, while the Enterprise Risk Management program gives the Board and senior management a framework to help them understand, identify, assess, manage and monitor risks so we can meet our strategic objectives.

The company continues to articulate its positions on key public policy issues and on a wide range of environmental issues. The company is actively engaged around the world to promote science-based climate policies by working with regulatory, industry and other stakeholders.

The company's global operations are subject to laws and regulations that impose significant compliance costs and create reputational and legal risk.

Future bans or limitations on the use of diesel-powered vehicles or other applications could have a material adverse impact on our business over the long term.

Increasing global competition among our customers may affect our existing customer relationships and restrict our ability to benefit from some of our customers' growth.