The UpLift program, aimed at transforming the operating model, generated approximately $70 million of pre-tax savings in 2024. This includes run-rate savings of approximately $120 million, driven by a simplified operating structure and reduced digital technology costs.

New Equipment sales in China, a key market, experienced a decline of greater than 20%. This impacts the company's growth strategy and highlights risks associated with reliance on specific geographic regions.

The Tender Offer to acquire all issued and outstanding shares of Zardoya Otis was completed, resulting in the Company owning 95.51%. This acquisition consolidates control and potentially unlocks further synergies.

Management expects the UpLift program to generate approximately $200 million in annual run-rate savings by the second half of 2025. This indicates a focus on operational efficiency and cost management.

The company continues to initiate restructuring actions to keep the cost structure competitive. These actions are generally severance related and associated with the consolidation of office and manufacturing operations.

The favorable ruling in the German tax litigation resulted in income tax benefits of approximately $185 million and related interest income of approximately $200 million. This demonstrates effective management of tax-related matters.

The 10-K highlights the risk that changes in global economic conditions, including commodity prices, inflation, and decreased construction activity, could adversely affect the company's business and financial performance.

The ongoing conflicts between Russia and Ukraine and in the Middle East have resulted in worldwide geopolitical and macroeconomic uncertainty. If these conflicts continue for a significant time or further expand to other countries, they could have additional adverse effects on macroeconomic conditions.

The company acknowledges the increasing threat of cyberattacks and the need for continued investment in information technology infrastructure and cybersecurity measures to protect its systems and data.

The company recognizes the need to grow its business through the design, development, production, sale and support of innovative products that incorporate advanced technologies. If the company is unable to successfully develop and timely introduce new products, services and technologies, its competitors may develop competing technologies that gain market acceptance in advance of or instead of its products or services.

The company operates in a competitive environment and its profitability depends on its ability to accurately estimate the costs and timing of providing its products and services. If the company fails to accurately estimate its costs or the time required to complete a new equipment order, or the extent of required maintenance pursuant to a service contract, or execute on its productivity initiatives, the profitability of its contracts may be materially and adversely affected.

The company uses a variety of raw materials, supplier-provided parts, components, sub-systems and third-party manufacturing services in its business, and significant shortages, supplier capacity constraints, supplier production disruptions or price increases could increase its operating costs and adversely impact the competitive positions of its products.

The UpLift program aims to transform the operating model through standardization of processes and improvement of supply chain procurement. This initiative is expected to generate significant cost savings.

The company initiates restructuring actions to keep its cost structure competitive. These actions generally arise from severance related to workforce reductions and, to a lesser degree, facility exit and lease termination costs associated with the consolidation of office and manufacturing operations.

Gross margin percentage increased due to the benefits from productivity and lower commodity prices, partially offset by inflationary pressures. This indicates successful cost management and operational improvements.

Research and development expense was relatively flat at $152 million, representing 1.1% of net sales. This indicates a continued commitment to innovation, including for IoT and developing the next generation of connected elevators and escalators.

Otis offers a range of technologies for improving the passenger experience and has been using technology to monitor elevator performance remotely for decades. As of December 31, 2024, approximately 1.0 million units of our global portfolio, including units under the warranty period, are connected.

The security of the company's products, services and corporate network is a key priority for its business. The company recognizes the importance of assessing, identifying, and managing material risks associated with cybersecurity threats.

The company repurchased $1.0 billion of Common Stock during 2024. A new share repurchase program for up to $2.0 billion was approved in January 2025.

Capital expenditures were $126 million in 2024, indicating continued investment in infrastructure and operations.

The company issued $600 million and €850 million in unsecured notes in November 2024. A portion of the proceeds will be used to fund the repayment at maturity of the Company's currently outstanding $1.3 billion 2.056% notes due April 5, 2025.

The company's ESG goals and ESG reports can be found in the Investor section of the company website, which is updated from time to time. This indicates a commitment to transparency and stakeholder engagement.

Progress towards the company's ESG goals was included as a performance multiplier in determining payouts under the 2024 executive short-term incentive plan. This aligns executive incentives with ESG performance.

In April 2024, the Science Based Target Initiative validated the company's near-term science-based GHG reduction targets. The new science-based targets replace the company's GHG target of 50% reduction in scope 1 and 2 GHG emissions by 2030 from 2019 base year.

China is currently the largest end market for sales of new equipment in the industry, with New Equipment net sales in China representing approximately one fourth of global New Equipment net sales and over half of global New Equipment unit volume and a growing part of the Service segment.

The ongoing conflicts between Russia and Ukraine and in the Middle East have resulted in worldwide geopolitical and macroeconomic uncertainty, and the company cannot predict how the conflicts will evolve or the timing thereof.

The company transacts business in various foreign currencies, which exposes its cash flows and earnings to changes in foreign currency exchange rates. The company manages foreign currency exposures associated with committed foreign currency purchases and sales, as well as foreign currency denominated assets and liabilities that are created in the ordinary course of business.