## Failure to successfully develop and introduce new products could limit our ability to grow and maintain our competitive position and adversely affect our financial condition, results of operations and cash flow. 

The success of new and improved products and services depends on their initial and continued acceptance by our customers. Our businesses are affected by varying degrees of technological change and corresponding shifts in customer demand, which result in unpredictable product transitions, shortened life cycles and increased importance of being first to market with new products and services. Difficulties or delays in the research, development, production and/or marketing of new products and services may negatively impact our operating results and prevent us from recouping or realizing a return on the investments required to continue to bring these products and services to market. 

## Our inability to obtain raw materials at favorable prices may adversely affect our operating margins and results of operations. 

We purchase substantially all electric power and other raw materials we use in the manufacturing of our products from outside sources. The costs of these raw materials have been volatile historically and are influenced by factors that are outside our control. In recent years, the prices for energy, metal alloys, nickel and certain other of our raw materials have been volatile. While we strive to offset our increased costs through supply chain management, contractual provisions and our Continuous Improvement Process initiative, where gains are achieved in operational efficiencies, our operating margins and results of operations and cash flows may be adversely affected if we are unable to pass increases in the costs of our raw materials on to our customers or operational efficiencies are not achieved. 

## Economic, political and other risks associated with international operations could adversely affect our business. 

A substantial portion of our operations is conducted and located outside the U.S. We have manufacturing, sales or service facilities in more than 50 countries and sell to customers in over 90 countries, in addition to the U.S. Moreover, we primarily source certain of our manufacturing and engineering functions, raw materials and components from China, Eastern Europe, India and Latin America. Accordingly, our business and results of operations are subject to risks associated with doing business internationally, including: 

• instability in a specific country's or region's political or economic conditions, particularly economic conditions in Europe and Latin America, and political conditions in Russia, the Middle East, Asia, North Africa, Latin America and other emerging markets; 

• trade protection measures, such as tariff increases, and import and export licensing and control requirements; 

• political, financial market or economic instability relating to Brexit; 

• political, financial market or economic instability relating to epidemics (including the ongoing coronavirus outbreak emanating from China) or pandemics; 

• uncertainties related to any geopolitical, economic and regulatory effects or changes due to recent or upcoming domestic and international elections; 

• the imposition of governmental economic sanctions on countries in which we do business, including Russia and Venezuela; 

• potentially negative consequences from changes in tax laws or tax examinations; 

• difficulty in staffing and managing widespread operations; 

• increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; 

• difficulty of enforcing agreements and collecting receivables through some foreign legal systems; 

• differing and, in some cases, more stringent labor regulations; 

• potentially negative consequences from fluctuations in foreign currency exchange rates; 

• partial or total expropriation; 

• differing protection of intellectual property; 

• inability to repatriate income or capital; and 

