Fortive (FTV) risk factors, FY2025 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, commercialization and customer acceptance of new and enhanced products and services based on technological innovation
6. 06Our ability to successfully manage our leadership transition in connection with the completed Separation and attract, develop, and retain senior leaders and other key employees is critical to our success55% rewritten
7. 07Disruptions in, or breaches in security of, our information technology systems, exfiltration of confidential or sensitive data, and other cyberattacks have adversely affected, and in the future could adversely affect, our business25% rewritten
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. 10Work stoppages, works council campaigns, and other labor disputes could adversely impact our productivity and results of operations
11. 11If 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
12. 12If 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
13. 13Third 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
14. 14Our restructuring activities could have long-term adverse effects on our business
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 use artificial intelligence in our business and in certain of 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 results26% rewritten
2. 19Trade relations between the United States and other countries have been volatile and could have a material adverse effect on our business and financial results78% rewritten
3. 20Foreign currency exchange rates, including the volatility thereof, may adversely affect our financial results

Risk Related to Our Investments and Dispositions

1. 21Our strategy requires us to execute and deliver disciplined capital allocationNew
2. 22Our acquisition of businesses, investments, joint ventures, and other strategic relationships could negatively impact our financial results
3. 23The 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
4. 24Divestitures or other dispositions could negatively impact our business, and contingent liabilities from businesses that we have sold could adversely affect our financial results
5. 25Potential indemnification liabilities to Ralliant and Vontier pursuant to the respective separation agreements could materially and adversely affect our businesses, financial condition, results of operations, and cash flows42% rewritten

Risk Related to Regulatory and Compliance Matters

1. 26Changes in industry standards and governmental regulations may reduce demand for our products or services or increase our expenses
2. 27Our reputation, ability to do business, and financial results may be impaired by improper conduct by any of our employees, agents, or business partners
3. 28Our 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. 29Our 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. 30Changes 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. 31We could incur significant liability if our separation from Danaher, our separation of Vontier or our separation of Ralliant (together, the “Separation Transactions”) are determined to be a taxable transaction21% rewritten
3. 32Changes in U.S. GAAP could adversely affect our reported financial results and may require significant changes to our internal accounting systems and processes
4. 33We may be required to recognize impairment charges for our goodwill and other intangible assets22% rewritten

Risk Related to Our Financing Activities

1. 34We 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