XML 59 R42.htm IDEA: XBRL DOCUMENT
v3.24.0.1

STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Schedule of Stock-Based Compensation Costs | The following summarizes the components of our stock-based compensation expense under the Stock Plan for the years ended December 31 ($ in millions):
| 2023 |  | 2022 |  | 2021
Stock Awards: |  |  |  |  |
Pretax compensation expense | $ | 78.4 |  |  | $ | 60.1 |  |  | $ | 48.6 |
Income tax benefit | (11.0) |  |  | (8.7) |  |  | (7.9) |
Stock Award expense, net of income taxes | 67.4 |  |  | 51.4 |  |  | 40.7 |
Stock options: |  |  |  |  |
Pretax compensation expense | 34.9 |  |  | 33.7 |  |  | 28.8 |
Income tax benefit | (4.6) |  |  | (5.1) |  |  | (5.0) |
Stock option expense, net of income taxes | 30.3 |  |  | 28.6 |  |  | 23.8 |
Total stock-based compensation: |  |  |  |  |
Pretax compensation expense | 113.3 |  |  | 93.8 |  |  | 77.4 |
Income tax benefit | (15.6) |  |  | (13.8) |  |  | (12.9) |
Total stock-based compensation expense, net of income taxes | $ | 97.7 |  |  | $ | 80.0 |  |  | $ | 64.5 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):
Stock Awards | $ | 36.0 |
Stock options | 88.4 |
Total unrecognized compensation cost | $ | 124.4 |
Schedule of Assumptions Used | The following summarizes the assumptions used in the Black-Scholes model to value stock options granted under the Stock Plan during the years ended December 31:
| 2023 |  | 2022 |  | 2021
Risk-free interest rate | 3.5% - 4.5% |  | 1.7% - 3.9% |  | 0.8% - 1.3%
Volatility (a) | 28.6 | % |  | 29.3 | % |  | 27.2 | %
Dividend yield (b) | 0.4 | % |  | 0.4 | % |  | 0.4 | %
Expected years until exercise | 5.5 - 8.0 |  | 5.5 - 8.0 |  | 5.5 - 8.0
(a) Expected volatility is based on a weighted average blend of the company’s historical stock price volatility from July 2, 2016 (the date of separation from Danaher) through the stock option grant date and the average historical stock price volatility of a group of peer companies for the expected term of the options.
(b) The dividend yield is calculated by dividing our annual dividend, based on the most recent quarterly dividend rate, by Fortive’s closing stock price on the grant date.
Schedule of Stock Option Activity | The following summarizes option activity under the Stock Plan (in millions, except price per share and numbers of years):
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value
Outstanding as of December 31, 2021 | 10.4 |  |  | 54.81 |  |  |  |  |
Granted | 2.2 |  |  | 64.76 |  |  |  |  |
Exercised | (0.5) |  |  | 38.19 |  |  |  |  |
Canceled/forfeited | (0.8) |  |  | 65.56 |  |  |  |  |
Outstanding as of December 31, 2022 | 11.3 |  |  | 56.70 |  |  |  |  |
Granted | 1.5 |  |  | 66.78 |  |  |  |
Exercised | (1.4) |  |  | 45.21 |  |  |  |  |
Canceled/forfeited | (0.5) |  |  | 66.21 |  |  |  |
Outstanding as of December 31, 2023 | 10.9 |  |  | 59.06 |  |  | 6 |  | $ | 159.5 |
Vested and expected to vest as of December 31, 2023 (a) | 10.7 |  |  | 58.95 |  | 6 |  | $ | 158.3 |
Exercisable as of December 31, 2023 | 5.9 |  |  | 53.06 |  | 4 |  | $ | 122.3 |
(a) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.
Schedule of Aggregate Intrinsic Value and Cash Receipts | The following summarizes aggregate intrinsic value and cash receipts related to stock options that were exercised under the Stock Plan for the years ended December 31 ($ in millions):
| 2023 |  | 2022 |  | 2021
Aggregate intrinsic value of stock options exercised | $ | 35.9 |  |  | $ | 12.4 |  |  | $ | 55.9 |
Cash receipts from stock options exercised | $ | 51.5 |  |  | $ | 17.6 |  |  | $ | 52.4 |
Schedule of Stock Unit Activity | The following summarizes information related to Stock Award activity under the Stock Plan for the years ended December 31, 2023 and 2022 (in millions; except price per share):
| Number of Stock Awards |  | Weighted Average Grant-Date Fair Value
Unvested as of December 31, 2021 | 2.6 |  |  | $ | 66.43 |
Granted | 1.4 |  |  | 64.01 |
Vested | (0.5) |  |  | 63.51 |
Forfeited | (0.4) |  |  | 64.01 |
Unvested as of December 31, 2022 | 3.1 |  |  | 66.00 |
Granted | 1.3 |  |  | 67.32 |
Vested | (0.8) |  |  | 67.09 |
Forfeited | (0.3) |  |  | 66.12 |
Unvested as of December 31, 2023 | 3.3 |  |  | 66.30 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the total intrinsic value of options exercised (or share units converted), share-based liabilities paid, and the total fair value of shares vested during the year. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Subparagraph (d)(2) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (e) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Subparagraph (f)(2) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of the number and weighted-average grant date fair value for restricted stock and restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock and restricted stock units that were granted, vested, or forfeited during the year. + References No definition available. + Details
Name: | us-gaap_ScheduleOfSharebasedCompensationRestrictedStockAndRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of cost not yet recognized and weighted-average period over which cost is expected to be recognized for nonvested award under share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Subparagraph (i) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ScheduleOfUnrecognizedCompensationCostNonvestedAwardsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration