Acquisitions and Divestitures - The company faces risks related to acquisitions, including potential underperformance of acquired businesses and significant debt incurred, which could adversely affect financial results [96]. - Indemnification provisions in acquisition agreements may not fully protect the company, leading to unexpected liabilities that could impact financial statements [97]. - Divestitures may dilute earnings per share and have adverse financial impacts, with the company retaining responsibility for certain contingent liabilities from sold businesses [99]. - Potential indemnification liabilities to Vontier could materially affect the company's financial condition and results of operations [100]. - The acquisitions of ServiceChannel and Provation were completed on August 24, 2021, and December 27, 2021, respectively, constituting 1% of the company's total assets and revenues for the year ended December 31, 2021 [311]. - The total net cash consideration for the acquisitions of Provation and ServiceChannel was approximately $2.57 billion [398]. - The total consideration for the acquisition of Provation Software, Inc. was approximately $1.4 billion, with $970 million recorded as goodwill [395]. - The acquisition of ServiceChannel Holdings, Inc. was completed for approximately $1.2 billion, resulting in $873 million of goodwill [396]. - The operating loss from these acquisitions for the year ended December 31, 2021, was $60.9 million, which included $12.0 million of intangible asset amortization [397]. - The acquisition of Advanced Sterilization Products (ASP) was completed for $2.7 billion, with ASP generating annual revenues of approximately $800 million in 2018 [399]. - The company has been actively evaluating potential mergers and acquisitions to align with its strategic goals and enhance its portfolio [392]. Financial Performance - Total sales for the year ended December 31, 2021, reached $5,254.7 million, a 13.4% increase from $4,634.4 million in 2020 [333]. - Gross profit for 2021 was $3,007.1 million, up from $2,608.5 million in 2020, reflecting a gross margin improvement [333]. - Operating profit increased to $812.8 million in 2021, compared to $539.4 million in 2020, marking a 50.6% growth [333]. - Net earnings attributable to common stockholders for 2021 were $573.9 million, a significant decrease from $1,544.3 million in 2020 [333]. - Basic net earnings per common share from continuing operations were $1.66 in 2021, down from $4.10 in 2020 [333]. - The company reported a comprehensive income of $564.5 million for 2021, compared to $1,664.1 million in 2020, indicating a decline in overall profitability [335]. - Research and development expenses increased to $354.8 million in 2021, up from $320.7 million in 2020, highlighting a focus on innovation [333]. - The total cost of sales for 2021 was $2,247.6 million, an increase from $2,025.9 million in 2020, reflecting rising operational costs [333]. - Interest expense decreased to $103.2 million in 2021 from $148.5 million in 2020, indicating improved financial management [333]. - The company experienced a foreign currency translation loss of $68.7 million in 2021, contrasting with a gain of $63.5 million in 2020, impacting overall financial results [335]. Assets and Liabilities - The net carrying value of goodwill and other intangible assets totaled approximately $13.0 billion as of December 31, 2021 [116]. - The company had approximately $4.0 billion of long-term debt as of December 31, 2021, which may increase if additional debt is incurred [117]. - Total current assets decreased to $2.5 billion in 2021 from $4.4 billion in 2020, primarily due to a reduction in cash and equivalents [331]. - The company's total assets increased to $16.5 billion in 2021 from $16.1 billion in 2020, driven by growth in goodwill and intangible assets [331]. - Current liabilities rose to $3.7 billion in 2021 from $2.9 billion in 2020, largely due to an increase in the current portion of long-term debt [331]. - Retained earnings increased to $6.0 billion in 2021 from $5.5 billion in 2020, indicating improved profitability [331]. - The company's total stockholders' equity increased to $9.5 billion in 2021 from $9.0 billion in 2020, reflecting strong performance and capital management [331]. - The company's goodwill balance is $9.2 billion as of December 31, 2021, an increase from $7.4 billion in 2020, reflecting a significant investment in acquisitions [327]. - The current portion of long-term debt as of December 31, 2021, was $2,151.7 million, with a fair value of $2,158.3 million [431]. - Total accrued expenses and other liabilities as of December 31, 2021, amounted to $2,247.1 million, compared to $2,133.3 million in 2020 [434]. Regulatory and Taxation Risks - Changes in industry regulations may reduce demand for products or increase expenses, impacting financial performance [101]. - The company is subject to extensive regulations, and failure to comply could result in significant penalties and damage to reputation [106]. - Changes in effective tax rates or audits by tax authorities could lead to unfavorable adjustments in tax liabilities, adversely affecting financial statements [109]. - Foreign remittance taxes on undistributed earnings of non-U.S. subsidiaries could increase if intentions regarding reinvestment change [110]. - The Tax Cuts and Jobs Act of 2017 may impact the company's future income tax provision and effective tax rate due to ongoing regulatory changes [111]. - The OECD announced a global minimum corporate tax rate of 15% in December 2021, which could significantly increase tax uncertainty for the company [113]. - The company may incur significant tax liabilities if any of its separation transactions are determined to be taxable [114]. Internal Controls and Compliance - The company's internal control over financial reporting was assessed as effective as of December 31, 2021 [310]. - The company reported an unqualified opinion on its financial statements, affirming compliance with U.S. generally accepted accounting principles [322]. - The company's internal control over financial reporting was evaluated as effective as of December 31, 2021, based on established criteria [323]. - The company is required to comply with ever-changing labor and employment laws and regulations in multiple jurisdictions, which could negatively impact its business [112]. - Changes in U.S. GAAP could adversely affect the company's reported financial results and may require significant changes to internal accounting systems [115]. Cash Flow and Financing Activities - Total operating cash provided by continuing operations was $992.9 million, slightly up from $977.7 million in 2020 [340]. - Net cash provided by operating activities decreased to $961.1 million from $1,436.7 million in 2020, reflecting a decline of 33.1% [340]. - Cash paid for acquisitions, net of cash received, amounted to $2,570.1 million, significantly higher than $40.4 million in 2020 [340]. - Total investing cash used in continuing operations was $2,615.6 million, compared to $110.8 million in 2020, indicating a substantial increase in investment activities [340]. - Net cash (used in) provided by financing activities was $652.0 million, a recovery from a cash outflow of $696.1 million in 2020 [340]. - The ending balance of cash and equivalents decreased to $819.3 million from $1,824.8 million in 2020, a decline of 55.1% [340]. - The company entered into a $1.0 billion Delayed-Draw Term Loan facility on December 16, 2021, and drew down the full amount as a daily floating LIBOR rate loan [443][444]. - A Debt-for-Equity Exchange was completed on January 19, 2021, involving 33.5 million shares of common stock for $1.1 billion in debt, resulting in a loss of $94.4 million [445]. - The company repaid $316.8 million of the Term Loan due May 2021 using cash proceeds from Vontier, maintaining compliance with all financial covenants [446]. - The company issued $1.4 billion in 0.875% Convertible Senior Notes due 2022, with $1.3 billion classified as debt and $102.2 million as equity [447][448]. Pension and Employee Benefits - U.S. Pension Benefits obligation decreased from $47.2 million in 2020 to $46.4 million in 2021, while Non-U.S. Pension Benefits obligation decreased from $371.8 million in 2020 to $340.8 million in 2021 [466]. - The fair value of U.S. Pension plan assets increased from $29.3 million in 2020 to $31.9 million in 2021, while Non-U.S. Pension plan assets decreased slightly from $224.4 million in 2020 to $223.1 million in 2021 [466]. - The funded status of U.S. Pension Benefits improved from $(17.9) million in 2020 to $(14.5) million in 2021, and Non-U.S. Pension Benefits improved from $(147.4) million in 2020 to $(117.7) million in 2021 [467]. - The net periodic pension cost for U.S. Pension Benefits was $0.0 million in 2021, compared to $(0.1) million in 2020, while Non-U.S. Pension Benefits cost was $6.3 million in 2021, down from $6.9 million in 2020 [469]. - The discount rate for U.S. Pension Plans increased from 2.40% in 2020 to 2.82% in 2021, and for Non-U.S. Pension Plans increased from 0.99% in 2020 to 1.31% in 2021 [468].

Financial Highlights - Q4 2021 revenue reached $1.4 billion, a 3.8% year-over-year increase[6] - Full-year 2021 revenue totaled $5.3 billion, up 13.1% year-over-year[6] - Q4 2021 adjusted operating profit was $335 million, with a margin of 24.4%[6] - Full-year 2021 adjusted operating profit was $1.2 billion, with a margin of 23.1%[6] - Q4 2021 adjusted earnings per share (EPS) was $0.79, a 12.9% year-over-year increase[6] - Full-year 2021 adjusted EPS was $2.75, up 31.6% year-over-year[6] - Full-year 2021 core growth was 9.5%[6] Free Cash Flow - Q4 2021 free cash flow was $265 million, a 15.2% year-over-year decrease[6] - Full-year 2021 free cash flow was $943 million, up 4.5% year-over-year[6] 2022 Outlook - The company anticipates 5.5% to 8.5% core growth in 2022[35, 38] - The company expects total software revenue to grow strongly in double digits in 2022 to approximately $950 million[36] - The company projects adjusted EPS between $3.00 and $3.13, representing a 9% to 14% increase[38]

Financial Data and Key Metrics Changes - The company reported total revenue growth of 3.8% year-over-year with core growth of 1% in Q4 2021, with acquisitions contributing over 3 points of growth primarily from ServiceChannel [39] - Adjusted gross margins approached 58% in the quarter, and operating margins were 24.4%, reflecting 190 basis points of core operating margin expansion [40] - Free cash flow generated in Q4 was $265 million, representing 92% conversion of adjusted net income [43] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) posted total revenue growth of 6.4% in Q4, with core growth of 0.8%, driven by low single-digit growth in North America and high-teens growth in China [14] - Precision Technologies segment saw total revenue increase of 2.1% with core growth of 2.6%, including mid-teens growth in China [21] - Advanced Healthcare Solutions reported total revenue increase of 1.5%, despite a core revenue decline of 0.8% [24] Market Data and Key Metrics Changes - North America revenues were roughly flat, reflecting strong demand across multiple end markets, offset by supply chain constraints [41] - Western Europe experienced year-over-year declines across much of the portfolio, while Asia and high-growth regions grew revenues in double digits, driven by mid-teens growth in China [42] - The company noted that elective procedure rates in the U.S. were lower than anticipated, impacting revenue in the Advanced Healthcare Solutions segment [24][68] Company Strategy and Development Direction - The company is focused on delivering long-term sustainable value creation through its disciplined application of the Fortive Business System [12] - Significant progress was made in executing the M&A strategy in 2021, with acquisitions like ServiceChannel and Provation expected to enhance growth and free cash flow profiles [30][34] - The company aims to continue building a more resilient growth company capable of converting more revenue to earnings and more earnings to cash [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain constraints and the impact of the Omicron variant on operations, but expressed confidence in strong demand and backlog levels [9][65] - The outlook for 2022 includes expectations for differentiated growth and margin expansion, with revenue guidance in the range of $5.7 billion to $5.9 billion [48] - Management indicated that elective procedures are expected to remain flat to 2021 levels, with potential upside if conditions improve [76][78] Other Important Information - The company reported a tax rate of approximately 9% for the quarter, flat year-over-year, but lower than expectations [10] - The company has made significant progress towards sustainability goals, including carbon emission reduction targets and responsible sourcing initiatives [35][37] Q&A Session Summary Question: Follow-up on organic sales guidance for the year - Management expressed confidence in the acceleration of core growth in the second half of the year, supported by strong order momentum and record backlog levels [64] Question: Assessment of Advanced Healthcare Solutions competitive position - Management noted good growth outside the U.S. and strong margin expansion, indicating a positive outlook for the segment despite challenges in elective procedures [68] Question: Expectations for core growth trajectory throughout the year - Management indicated gradual acceleration in core growth, with expectations to exit the year at a strong rate due to improving supply chain conditions [74] Question: Supply chain resilience strategies - Management discussed countermeasures being implemented to enhance supply chain resilience, including qualifying new suppliers and redesigning platform architectures [81] Question: Total software revenue growth and SaaS metrics - Management reported low double-digit software growth in Q4 and high single-digit ARR growth, indicating positive momentum in software-enabled solutions [87] Question: Clarification on backlog and inventory levels - Management confirmed that the backlog is primarily driven by demand rather than inventory buildup, with good sales out and demand environment [92]

Fortive Corp Brands, Inc. (NYSE:FTV) Q3 2021 Earnings Conference Call October 28, 2021 5:00 PM ET Company Participants Griffin Whitney - VP, IR James Lico - President, CEO & Director Charles McLaughlin - SVP & CFO Conference Call Participants Scott Davis - Melius Research Deane Dray - RBC Capital Markets Jeffrey Sprague - Vertical Research Partners Andrew Obin - Bank of America Merrill Lynch Julian Mitchell - Barclays Bank Nigel Coe - Wolfe Research Joshua Pokrzywinski - Morgan Stanley Markus Mittermaier - ...

| --- | --- | --- | --- | |------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | MORGAN STANLEY VIRTUAL 9TH ANNUAL LAGUNA CONFERENCE SEPTEMBER 15, 2021 | | | | FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Statements in this presentation that are not strictly historical, including statements regarding business and acquisition opportunities, timing of acquisitions and other transactions, anticipated financial results, economic condi ...

Second Quarter 2021 Earnings Release July 29, 2021 1 FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Statements in this presentation that are not strictly historical, including statements regarding the future impact of the COVID-19 pandemic, the Company's anticipated financial results, business, investment and acquisition opportunities, timing of acquisitions, dispositions and other transactions, anticipated revenue, anticipated operating margin, anticipated cash flow, economic conditions, future p ...

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 26.7% year-over-year, exceeding the high end of guidance [15] - Adjusted operating margin was 22.2%, with adjusted earnings per share at $0.66, representing a year-over-year increase of 53.5% [15] - Free cash flow generated was $282 million, representing 118% conversion of adjusted net income [15][30] Business Line Data and Key Metrics Changes - The Intelligent Operating Solutions (IOS) segment posted total revenue growth of 31.2%, with mid-20% core growth in North America and low 30% core growth in Western Europe [16] - Precision Technologies segment saw a total revenue increase of 25.1%, with Tektronix increasing by approximately 30% [22] - Advanced Healthcare Solutions (AHS) total revenue increased by 21.8%, including 11% core growth [25] Market Data and Key Metrics Changes - Fluke core revenue increased in the mid-30% range, with strong demand across its businesses [16] - In China, IOS experienced low 20% core growth, while Precision Technologies had mid-teens growth [16][22] - The AHS segment reported high single-digit core growth in North America, Western Europe, and China [25] Company Strategy and Development Direction - The company is focusing on expanding its software capabilities to address critical workflow needs and accelerate digital transformation for customers [10] - The acquisition of ServiceChannel is expected to enhance the company's ability to meet evolving needs of facility owners globally [13] - The company aims to leverage its strong free cash flow and M&A capacity to pursue organic and inorganic growth initiatives [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery in key end markets and the ability to capitalize on post-COVID return to work challenges [11][36] - The company anticipates continued strong performance in the second half of 2021, raising its full-year guidance for adjusted diluted net earnings per share to $2.65 to $2.75 [31] - Management highlighted the importance of sustainability and inclusion efforts, committing to significant greenhouse gas reduction goals [35] Other Important Information - The company completed the separation of its Industrial Technologies segment through the spinoff of Vontier Corporation on October 9, 2020 [4] - The deployment of the Fortive Business System has driven innovation and growth across the portfolio, with significant improvements in R&D efficiency [12] Q&A Session Summary Question: AHS margin guidance for Q4 - Management indicated that margins could reach the mid to high 20s due to expected revenue acceleration from elective surgeries and seasonal revenue increases [41][44] Question: Impact of cost increases on margins - Management confirmed that there were $60 million of snapback costs and an additional $15 million in investments that impacted Q2 margins [47] Question: Channel inventories and demand - Management noted that point of sale improved significantly, and they are monitoring orders on hand to ensure they are not building excess inventory [53][54] Question: Growth in new verticals for Tektronix - Management reported increased sales in automotive and data centers, indicating a positive outlook for growth in these new verticals [56][57] Question: Professional services growth and site access - Management expects double-digit growth in professional services in the second half, with improved site access aiding in closing deals [68] Question: Supply chain constraints - Management acknowledged ongoing supply chain challenges but expressed confidence in their ability to meet demand due to established lean manufacturing capabilities [75] Question: Growth outlook in China - Management remains optimistic about growth in China, particularly for Fluke and Tektronix, expecting mid-teens growth for the full year [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37654 ____________ FORTIVE CORPORATION (Exact name of registrant as specified in its c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37654 ____________ FORTIVE CORPORATION (Exact name of registrant as specified in its c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 FORM 10-K (Mark One) OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37654 ________________________________________________ FORTIVE CORPORATION (Exact name ...