The 10-K notes that organic revenue declined 0.7% in 2024, and product line simplification activities reduced organic revenue by 60 basis points. This suggests that while the company is focusing on high-quality revenue, it is sacrificing some growth in the short term.

The company completed acquisitions of one business for $57 million and another for $59 million, both in the Test & Measurement and Electronics segment, indicating a strategic focus on this segment.

The company sold its noncontrolling equity interest in Wilsonart for $398 million, resulting in a pre-tax gain of $363 million, indicating a continued focus on portfolio optimization.

The 10-K states that ITW will continue to drive 80/20 Front-to-Back practice excellence in every division, every day, which will produce further customer-facing performance improvement and additional structural margin expansion.

The 10-K notes that product line simplification activities reduced organic revenue by 60 basis points, indicating a trade-off between short-term revenue and long-term profitability.

The 10-K emphasizes the importance of the ITW Business Model and decentralized, entrepreneurial culture, suggesting continued commitment to this management approach.

The 10-K states that slower economic growth, financial market instability, supply chain disruptions, natural disasters, public health crises, labor market challenges, rapid inflation and armed conflicts can adversely affect the Company's businesses.

The 10-K notes that over 50% of the Company's net sales are derived from customers outside the United States, and the Company currently operates in 51 countries, exposing it to risks such as currency fluctuations, limitations on ownership, and political instability.

The 10-K states that the Company relies on information technology networks and systems, which may be susceptible to damage, disruptions or shutdowns due to various factors, including cyber-based attacks. In addition, cybersecurity laws and regulations continue to evolve, and are increasingly demanding.

The 10-K states that in virtually all segments, the Company differentiates its businesses from its competitors based on product innovation, product quality, brand preference and service delivery.

The Company believes that each segment's primary competitive advantages derive from the ITW Business Model and decentralized operating structure, which creates a strong focus on end markets and customers at the local level.

The Company also believes that its global footprint is a competitive advantage in many of its markets, especially in its Automotive OEM segment.

The 10-K states that driving strong operational excellence in the quality of 80/20 Front-to-Back practice across the Company, division by division, will produce further customer-facing performance improvement and additional structural margin expansion.

Cost of revenue was $8.9 billion in 2024, $9.3 billion in 2023 and $9.4 billion in 2022. Cost of revenue was 4.9% lower in 2024 compared to 2023 primarily due to lower revenue and the first quarter 2024 LIFO accounting method change, which reduced cost of revenue by 3.1% and 1.3%, respectively.

Selling, administrative, and research and development expenses were $2.7 billion in 2024, $2.6 billion in 2023 and $2.6 billion in 2022. Expenses in 2024 increased 1.4% compared to 2023 primarily driven by higher employee-related expenses and the impact of acquisitions in 2024.

The Company also credits its success in the markets it serves to engineering capability; manufacturing techniques; skills and efficiency; marketing and sales promotion; and service and delivery of quality products to its customers.

The Company's ability to develop new products based on innovation can affect its competitive position and sometimes requires the investment of significant time and resources. Difficulties or delays in research, development, production or commercialization of new products and services or in the adoption of technological change, such as the use of artificial intelligence and machine learning, may reduce future revenues and adversely affect the Company's competitive position.

Customer-back Innovation ("CBI") is the most impactful driver to achieve high-quality organic growth through the cycle by establishing trusted problem solver relationships with key customers to effectively invent solutions that address customers' most critical pain points or tackle the biggest growth opportunities.

The Company repurchased approximately 5.9 million shares of its common stock in 2024 for approximately $1.5 billion, indicating a continued commitment to returning capital to shareholders.

The Company increased the quarterly dividend on common stock from $1.40 to $1.50 per share in 2024, reflecting confidence in future cash flow generation.

As of December 31, 2024, there were approximately $3.5 billion of authorized repurchases remaining under the 2023 Program.

The Company believes that its businesses and operations, including its manufacturing plants and equipment, are in substantial compliance with all applicable government laws and regulations, including those related to environmental, consumer protection, international trade, labor and employment, human rights, tax, anti-bribery and competition matters.

The Company is subject to complex U.S., foreign and other local laws and regulations that are applicable to its operations, such as anti-bribery and anti-corruption, competition, export and import, trade sanctions, data privacy, environmental, the use of artificial intelligence in our business and in our products and services, and human rights laws.

As a global employer, the Company is committed to providing market-competitive compensation and benefits that support physical, mental, and financial well-being to attract and retain great talent across its global divisions.

The Company's businesses are impacted by economic conditions around the globe. Slower economic growth, financial market instability, supply chain disruptions, natural disasters, public health crises (such as the COVID-19 pandemic), labor market challenges, rapid inflation, armed conflicts (such as the Russia and Ukraine conflict), government deficit reduction, sequestration and other austerity measures impacting the markets the Company serves can adversely affect the Company's businesses.

The Company is subject to complex U.S., foreign and other local laws and regulations that are applicable to its operations, such as anti-bribery and anti-corruption, competition, export and import, trade sanctions, data privacy, environmental, the use of artificial intelligence in our business and in our products and services, and human rights laws.

Increased public awareness and concern regarding environmental risks, including global climate change, may result in more international, regional and/or federal requirements or industry standards to reduce or mitigate global warming and other environmental risks.