Fortive announced its intention to separate its Precision Technologies segment into an independent publicly-traded company named Ralliant. This strategic move aims to create two focused entities, each aligned to specific market opportunities.

The acquisition of EA Elektro-Automatik for approximately $1.72 billion bolsters the Precision Technologies segment with innovative electronic test solutions. This acquisition is expected to drive growth in key energy transition markets.

The divestiture of Invetech, excluding the Motion Solution Business, to its management team reflects a strategic decision to focus on core competencies. While the divestiture resulted in a loss, it is not expected to have a significant impact on overall operations.

A restructuring plan initiated in 2024, expected to be completed by December 31, 2025, focuses on realigning cost structures. These actions are intended to improve efficiency and support long-term profitability.

Management concluded that the company maintained effective internal control over financial reporting as of December 31, 2024, indicating a commitment to accurate and reliable financial reporting.

The company has a process for assessing, identifying, and managing material risks associated with cybersecurity threats. This includes a cybersecurity program based on the NIST framework and regular tabletop exercises.

Conditions in the global economy, the markets the company serves, and the financial markets may adversely affect its business and financial results. This includes slower global economic growth, reduced demand, and high inflation rates.

Reliance upon sole or limited sources of supply for certain materials, components, and services could cause production interruptions, delays, and inefficiencies. This highlights potential vulnerabilities in the supply chain.

Disruptions in, or breaches in security of, information technology systems have adversely affected, and in the future could adversely affect, the business. This underscores the importance of robust cybersecurity measures.

The company faces intense competition and if it is unable to compete effectively, it may experience decreased demand and decreased market share. This necessitates continuous innovation and timely development of new products.

Growth depends in part on the timely development and commercialization and customer acceptance of new and enhanced products and services based on technological innovation. Failure to innovate could lead to obsolescence.

Even if the company competes effectively, it may be required to reduce prices for its products and services. This can put pressure on margins and profitability.

The company has implemented, and may continue to implement, significant restructuring activities across its businesses to adjust its cost structure. These activities aim to reduce costs and improve operational efficiency.

If the company cannot adjust its manufacturing capacity, supply chain management or the purchases required for its manufacturing activities to reflect changes in market conditions, customer demand and supply chain disruptions, its profitability may suffer.

Financial results are subject to fluctuations in the cost and availability of commodities or components that the company uses in its operations. This highlights the importance of managing material costs effectively.

The company generally sells its products and services in industries that are characterized by rapid technological changes, frequent new product introductions and changing industry standards. If it does not develop innovative new and enhanced products and services on a timely basis, its offerings will become obsolete over time and its competitive position and financial results will suffer.

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

The company relies on information technology systems, some of which are managed by third parties and some of which are managed on a decentralized, independent basis by its operating companies, to process, transmit, and store electronic information. Disruptions in, or breaches in security of, these systems have adversely affected, and in the future could adversely affect, the business.

The Company's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to 20 million shares of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions.

In the fourth quarter of 2023, the company increased the quarterly dividend paid from $0.07 per share to $0.08 per share on our common stock.

The company has a significant amount of debt, and its debt obligations, including the cost of such debt, will increase further if it incurs additional debt and does not retire existing debt, its credit rating declines, or if the applicable interest rates rise.

The company is committed to continued transparency by publicly sharing its workforce representation and inclusion results through its website and its annual Sustainability Report.

The company's operations, products, and services expose it to the risk of environmental, health, and safety liabilities, costs, and violations that could adversely affect its reputation and financial results.

The company is focused on cultivating an inclusive workplace where everyone can contribute to their fullest potential, attracting and retaining top talent from a wide variety of candidate sources, and sustaining policies and practices to ensure that no group is inadvertently disadvantaged.

International economic, political, legal, compliance, and business factors could negatively affect the company's financial results. This includes trade policies, sanctions, and changes in laws or regulatory requirements.

There continues to be significant uncertainty about the future relationship between the United States and other countries, including with respect to trade policies, treaties, government regulations, sanctions and tariffs. Any increased sanctions, tariffs or other trade barriers or restrictions on global trade, especially trade with China, could adversely impact the company's business and financial results.

Sales and purchases in currencies other than the U.S. dollar expose the company to fluctuations in foreign currencies relative to the U.S. dollar and may adversely affect our financial results.