The acquisition of ARAG Group, a global market and innovation leader in precision agriculture spraying solutions, was completed on August 24, 2023. ARAG operates as a division of the Industrial Precision Solutions segment.

The acquisition of CyberOptics Corporation, a leading global developer and manufacturer of high-precision 3D optical sensing technology solutions, was completed on November 3, 2022. CyberOptics expands the test and inspection platform in the semiconductor and electronics industries.

Sales in the Americas increased by 4.8%, while sales in Asia Pacific decreased by 6.1%. Europe saw a 5.7% increase in sales, indicating varied performance across different regions.

Selling and administrative expenses as a percentage of sales increased slightly to 28.6% in 2023 from 28.0% in 2022. The 0.6 percentage point increase was primarily due to cost structure simplification actions taken in 2023.

The Company is well-positioned to manage liquidity needs that arise from working capital requirements, capital expenditures, and contributions related to pension and postretirement obligations, as well as principal and interest payments on our outstanding debt.

Our solid historical performance is attributed to our diverse geographic and end market participation and our long-term commitment to develop and provide quality products and worldwide service to meet our customers' changing needs.

Changes in tariffs, trade agreements, or other trade restrictions imposed by the U.S. or other governments could significantly impact Nordson's ability to conduct business.

Significant movements in foreign currency exchange rates, particularly with respect to the euro, the yen, the pound sterling and the Chinese yuan, could affect Nordson's ability to sell products competitively and control its cost structure.

We conduct our manufacturing, sales and distribution operations on a worldwide basis and are subject to risks associated with doing business both within and outside the United States.

We operate in a competitive global marketplace and compete with many large, well-established and highly competitive manufacturers and service providers.

We maintain a leadership position in our business segments by delivering high-quality, innovative products and technologies, as well as global service and technical support.

Our competitive advantage is largely attributable to the technical, marketing, and sales competence and capabilities of our employees, rather than on any individual patent or trademark.

Gross profit, expressed as a percentage of sales, decreased to 54.2 percent in 2023 from 55.1 percent in 2022. The 0.9 percentage point decrease in gross margin was primarily driven by incremental inventory step-up amortization related to acquisitions in 2023 of $8,862 and unfavorable foreign currency effects.

Over the last year, we have seen a stabilization of the global supply chain and improved lead times. We enhanced our risk mitigation and sourcing efforts as a result of the COVID-19 pandemic and geopolitical tensions.

Logistics flows have improved, and global forwarding rates have returned to pre-pandemic levels. We continue to see moderate rate increases on parcel and domestic trucking activity.

Innovation is critical to our success. We believe that we must continue to enhance our existing products and to develop and manufacture new products with improved capabilities in order to continue to be a leading provider of precision technology solutions.

Research and development costs are expensed as incurred and were $71,400, $52,531 and $59,422 in 2023, 2022 and 2021, respectively.

We rely on a combination of intellectual property rights, including patents, trademarks, copyrights, trade secrets, and contractual provisions to protect our intellectual property.

The all-cash ARAG acquisition of approximately €957,000, net of the repayment of approximately €30,300 of debt of the acquired companies, was funded using borrowings under the 364-Day Term Loan Facility and the Company's revolving credit facility.

Approximately $551,996 of the total $1,500,000 authorized remained available for share repurchases at October 31, 2023. Uses for repurchased shares include the funding of benefit programs including stock options and restricted stock.

Dividend payments were $150,356 in 2023, up from $125,914 in 2022 due to an increase in dividends on our common shares, on an annual basis, to $2.63 per share from $2.18 per share.

We make statements about our environmental, social and governance goals and initiatives through information provided on our website, press statements and other communications, including through our ESG Report.

Our employees are trained and required to comply with these laws, and we are committed to legal compliance and corporate ethics.

It is our policy to apply strict standards for environmental protection to all of our operations within and outside of the United States, even when we are not subject to local government regulations.

The COVID-19 pandemic and related preventative and mitigation measures implemented by governments around the world and the conflicts in Europe and the Middle East have to date negatively impacted the global economy and created significant volatility and disruption of financial markets.

A general sustained slowdown in the global economy or in a particular region or industry or an increase in trade tensions with U.S. trading partners could negatively impact our business, financial condition or liquidity.

In 2023, approximately 34 percent of our revenue was generated in the United States, while approximately 66 percent was generated outside the United States.

Gross profit, expressed as a percentage of sales, decreased to 54.2 percent in 2023 from 55.1 percent in 2022. The 0.9 percentage point decrease in gross margin was primarily driven by incremental inventory step-up amortization related to acquisitions in 2023 of $8,862 and unfavorable foreign currency effects.

Over the last year, we have seen a stabilization of the global supply chain and improved lead times. We enhanced our risk mitigation and sourcing efforts as a result of the COVID-19 pandemic and geopolitical tensions.

Logistics flows have improved, and global forwarding rates have returned to pre-pandemic levels. We continue to see moderate rate increases on parcel and domestic trucking activity.