Fortive (FTV) risk factors, FY2024 10-K

Risk Related to Our Business Operations

1. 01Conditions in the global economy, the markets we serve, and the financial markets may adversely affect our business and financial results
2. 02Our financial results are subject to fluctuations in the cost and availability of commodities or components that we use in our operations
3. 03Our growth could suffer if the markets into which we sell our products and services decline, do not grow as anticipated, or experience cyclicality
4. 04We face intense competition and if we are unable to compete effectively, we may experience decreased demand and decreased market share. Even if we compete effectively, we may be required to reduce prices for our products and services
5. 05Our growth depends in part on the timely development and commercialization and customer acceptance of new and enhanced products and services based on technological innovation
6. 06Our ability to attract, develop, and retain senior leaders and other key employees is critical to our success
7. 07Disruptions in, or breaches in security of, our information technology systems have adversely affected, and in the future could adversely affect, our business
8. 08Defects and unanticipated use or inadequate disclosure with respect to our products (including software) or services could adversely affect our business, reputation, and financial results
9. 09Adverse changes in our relationships with, or the financial condition, performance, purchasing patterns, or inventory levels of, key distributors and other channel partners could adversely affect our financial results
10. 10Our restructuring activities could have long-term adverse effects on our business
11. 11Work stoppages, works council campaigns, and other labor disputes could adversely impact our productivity and results of operations
12. 12If we suffer loss to our facilities, supply chains, distribution systems, or information technology systems due to catastrophe or other events, our operations could be seriously harmed
13. 13If we do not or cannot adequately protect our intellectual property, or if third parties infringe our intellectual property rights, we may suffer competitive injury or expend significant resources enforcing our rights
14. 14Third parties may claim that we are infringing or misappropriating their intellectual property rights and we could suffer significant litigation expenses, losses, or licensing expenses or be prevented from selling products or services
15. 15We are subject to a variety of litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our financial results
16. 16Climate change, or legal or regulatory measures to address climate change, may negatively affect us
17. 17We 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

Risk Related to our International Operations

1. 18International economic, political, legal, compliance, and business factors could negatively affect our financial results
2. 19Trade relations between the United States and other countries could have a material adverse effect on our business and financial results
3. 20Foreign currency exchange rates, including the volatility thereof, may adversely affect our financial results

Risk Related to Our Acquisitions, Investments, and Dispositions

1. 21Our plans to separate into two independent, publicly traded companies may not be completed on the currently contemplated timeline or at all and may not achieve the intended benefits, including the anticipated tax treatment
2. 22Any inability to consummate acquisitions at our anticipated rate and at appropriate prices, and to make appropriate investments that support our long-term strategy, could negatively impact our growth rate and stock price
3. 23Our acquisition of businesses, investments, joint ventures, and other strategic relationships could negatively impact our financial results
4. 24The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities
5. 25Divestitures or other dispositions could negatively impact our business, and contingent liabilities from businesses that we have sold could adversely affect our financial results
6. 26Potential indemnification liabilities to Vontier pursuant to the separation agreement could materially and adversely affect our businesses, financial condition, results of operations, and cash flows

Risk Related to Regulatory and Compliance Matters

1. 27Changes in industry standards and governmental regulations may reduce demand for our products or services or increase our expenses
2. 28Our reputation, ability to do business, and financial results may be impaired by improper conduct by any of our employees, agents, or business partners
3. 29Our operations, products, and services expose us to the risk of environmental, health, and safety liabilities, costs, and violations that could adversely affect our reputation and financial results
4. 30Our businesses are subject to extensive regulation, including healthcare regulations; failure to comply with those regulations could adversely affect our financial results and our business, including our reputation

Risk Related to Our Tax and Accounting Matters

1. 31Changes in our effective tax rates or exposure to additional tax liabilities or assessments could affect our profitability. In addition, audits by tax authorities could result in additional tax payments for prior periods
2. 32We could incur significant liability if our separation from Danaher, our separation of our Automation and Specialty business, or our separation of Vontier or our pending separation of the PT segment (collectively, the “Separation Transactions”) are determined to be a taxable transaction
3. 33Changes in U.S. GAAP could adversely affect our reported financial results and may require significant changes to our internal accounting systems and processes
4. 34We may be required to recognize impairment charges for our goodwill and other intangible assets

Risk Related to Our Financing Activities

1. 35We have incurred a significant amount of debt, and our debt obligations, including the cost of such debt, will increase further if we incur additional debt and do not retire existing debt, our credit rating declines, or if the applicable interest rates rise