What changed in this filing

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Item 1. Business

2024-02-27 compared with 2023-02-28 · 54 added, 41 removed, 192 unchanged (33% of the section changed)

2 unchanged sentences

Our businesses design, develop, manufacture, and service professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions.

We are headquartered in Everett, Washington and employ a team of more than 18,000 research and development, manufacturing, sales, distribution, service, and administrative employees in more than 50 countries around the world.

On October 9, 2020, we completed the separation of Vontier Corporation (“Vontier”), the entity we created to hold our former Industrial Technologies segment (the “Separation”).

The accounting requirements for reporting the Vontier business as a discontinued operation were met when the Separation was completed.

Accordingly, the consolidated financial statements reflect the results of the Vontier business as a discontinued operation for all periods presented.

We are headquartered in Everett, Washington and have a workforce of more than 18,000 research and development, manufacturing, sales, distribution, service, and administrative professionals in more than 50 countries around the world.

Fortive Corporation is a Delaware corporation and was incorporated in 2015 in connection with the separation of Fortive from Danaher Corporation (“Danaher” or “Former Parent”) on July 2, 2016 as an independent, publicly-traded company, listed on the New York Stock Exchange.

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Fortive Business System

Our teams across our operating companies are united by our culture of continuous improvement and bias for action that is embodied in the Fortive Business System (“FBS”).

Through rigorous application of the proprietary set of growth, lean, and leadership tools and processes that comprise FBS, we continuously improve business performance in the critical areas of innovation, product development and commercialization, global supply chain, sales and marketing, corporate development,

human capital management, sustainability efforts, and leadership development.

Our commitment to FBS has enabled us to drive customer satisfaction and profitability, and generate significant improvements in innovation, growth, and core operating margins.

Additionally, FBS has helped us execute a disciplined acquisition strategy and expand our portfolio into new and attractive markets while creating long-term shareholder value.

Our teams across our operating companies are united by our culture of continuous improvement – characterized by the high expectations, inclusion, humility, and transparency embodied in the Fortive Business System (“FBS”).

This cultural foundation

is reinforced by the rigor of our disciplined operating cadence.

FBS enables us to operate our businesses with a focus on relentless execution, powered by our mindset and a set of tools and best practices consistently applied across our portfolio.

We are committed to delivering on our financial commitments and engaging our leaders and teams to accelerate and sustain progress in every aspect of the business, including new product development and commercialization, finance, human capital management, and sustainability.

We are continually evolving FBS to meet the changing needs of our portfolio and incorporating new technology enablers, like artificial intelligence and machine learning, to drive faster growth, more productivity, and greater impact.

The execution of our disciplined acquisition strategy is strengthened by the value FBS creates and is a critical component of how we achieve sustained results over time.

Purpose and Values

We are guided by our shared purpose to deliver essential technology for the people who accelerate progress.

Driven by our shared purpose, we strive to accelerate transformation in high-impact fields, such as workplace safety, engineering, and healthcare, delivering high-tech solutions and high impact for engineers, scientists, frontline workers, and patients around the world.

With our shared purpose defining what we do, the following core values guide how we deliver every day for our stakeholders:

We strive to accelerate transformation in high-impact fields, such as workplace safety, engineering, and healthcare, delivering high-tech solutions and high impact for engineers, scientists, frontline workers, and patients around the world.

Our values guide how we deliver every day for our stakeholders:

We build extraordinary teams for extraordinary results.

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Kaizen is our way of life .

We believe the next time can always be better, and our commitment to continuous improvement inspires us to keep growing and learning.

We know we can always do and be better.

Our commitment to continuous improvement, grounded in our FBS inspires us to approach our work with curiosity.

We are always growing and learning.

We compete for our shareholders .

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Our expertise in materials, methods and measurements are reflected in our electrical test & measurement, sensing and material technologies offered to a broad set of customers and vertical end markets, including industrial, power and energy, automotive, medical equipment, food and beverage, aerospace and defense, semiconductor, and other general industries.

Customers for these products and services include design engineers for advanced electronic devices and equipment, process and quality engineers focused on improved

process capability and productivity, facility maintenance managers driving increased uptime, and other customers for whom precise measurement, reliability, and compliance are critical in their applications.

Customers for these products and services

include design engineers for advanced electronic devices and equipment, process and quality engineers focused on improved process capability and productivity, facility maintenance managers driving increased uptime, and other customers for whom precise measurement, reliability, and compliance are critical in their applications.

Products and services in our Precision Technologies segment are marketed under a variety of brands, including ANDERSON-NEGELE, GEMS, SETRA, HENGSTLER-DYNAPAR, QUALITROL, PACIFIC SCIENTIFIC, KEITHLEY and TEKTRONIX.

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Our management believes that we have a market leadership position in most of the markets we serve.

Key competitive factors vary among our businesses and product and service lines, but include the specific factors noted above with respect to each particular business and typically also include price, quality, performance, delivery speed, applications expertise, distribution channel

access, service and support, technology and innovation, breadth of product, service and software offerings, and brand name recognition.

Key competitive factors vary among our businesses and product and service lines, but include the specific factors noted above with respect to each particular

business and typically also include price, quality, performance, delivery speed, applications expertise, distribution channel access, service and support, technology and innovation, breadth of product, service and software offerings, and brand name recognition.

For a discussion of risks related to competition, please refer to “Item 1A.

4 unchanged sentences

However, as a whole, we are not subject to material seasonality.

Human Capital Management

Fortive is a global team, approximately 18,000 strong, energized by a shared purpose.

Our People strategy centers on empowering strong, inclusive teams working together to solve problems no one could solve alone.

People Strategy (Human Capital Management)

Fortive is a global team, over 18,000 strong, energized by a powerful purpose.

Our people strategy centers on empowering inclusive teams working together to solve problems no one could solve alone.

We intentionally seek out different skills, backgrounds, and voices to deliver results for our customers and fulfill our employee promise – For you.

Our People strategy is defined by our inclusive growth culture, advanced through FBS, our talent and reward systems, and measured by our employee experience processes.

These key elements enable us to accelerate progress for our customers, our teams, and the world around us.

Our people strategy is defined by our inclusive growth culture and is advanced through FBS and our career development and reward systems.

We continually measure, review, and refine our strategy through measured employee experience processes.

These key elements enable us to accelerate progress for our customers, our teams, and the world.

Inclusive Growth Culture

We believe we are more together.

We are more together.

Our culture sets the tone for Fortive’s people strategy and drives Fortive’s success.

Inclusion, Diversity, and Equity (“IDE”) are core pillars of our strategy and culture.

– Inclusion - Develop our teams to build a Fortive where you can be yourself and do your best work.

– Diversity - Build a diverse Fortive through hiring, developing, and retaining a strong and diverse team.

– Equity - Build a culture of equity that enables greater innovation and performance for customers and for the world.

We accelerated the impact of IDE in 2022 by introducing our new inclusive leader experience to our senior leaders across the organization.

This development experience provides the tools and support to build an inclusive culture and prepares leaders to lead diverse high-performing teams.

We also continued to expand the impact of our Employee Friends and Resources Groups (“EFRG’s”) to increase inclusion and belonging within and for our underrepresented communities.

To drive FBS, continuous improvement and IDE accountability at all levels of our organization, our VP, Inclusion, Diversity, and Equity works closely with our senior management, our IDE Council, and our IDE practitioners.

We also cascade annual IDE goals into executive and senior leader performance measures.

Additionally, our Board of Directors and our Compensation Committee oversee our IDE efforts as part of our People strategy and measurement actions.

We are committed to continued transparency by publicly sharing our workforce representation and inclusion results and aspirational goals through our Proxy, EEO-1 report, website, and annual Sustainability Report.

Business, Talent, and Reward Systems

Along with FBS, Inclusion, Diversity, and Equity (“IDE”) are core enablers of our strategy and culture.

We know that an inclusive, diverse, and equitable workforce creates extraordinary long-term value for our employees and shareholders.

We are committed to IDE in all its forms.

We are focused on recruiting from a wide variety of diverse candidate sources, cultivating an inclusive environment where everyone can succeed, providing training on inclusion and unconscious bias, and monitoring policies and practices to ensure that no group is inadvertently disadvantaged.

Another part of Fortive’s commitment to IDE is our adherence to EEO (equal employment opportunity) principles.

All people are evaluated through a neutral merit-based process.

We do not consider race, ethnicity, gender, or any other protected trait in our hiring, promotional, or other processes.

To drive FBS, continuous improvement, and IDE accountability at all levels, our VP, Inclusion, Diversity, and Equity works closely with our senior management, IDE Council, and IDE practitioners across our businesses.

Our Board of Directors, along with the Compensation Committee, oversee our IDE efforts as part of our people strategy and measurement actions.

We are committed to continued transparency by publicly sharing our workforce representation and inclusion results and aspirational goals through our Proxy Statement, EEO-1 report, website, and annual Sustainability Report.

Business, Career Development, and Reward Systems

Our culture of continuous improvement inspires us to keep experimenting, growing, and learning.

Our FBS and robust talent and reward systems advance our people strategies by attracting, growing, and retaining the talent we need now and in the future.

Together, these business and talent systems strengthen our employee value proposition and build our employer brand while delivering new experiences to our employees and results for our customers.

Our FBS and robust career development and reward systems advance our people strategy by attracting, growing, and retaining the exceptional people we need now and in the future.

These business and career development systems strengthen our employee value proposition, build our employer brand, drive professional growth for our employees and results for our customers.

Our Performance and Development for Growth processes drive results and career growth for our global teams.

Performance for Growth rigorously deploys our strategies into cascaded goals throughout the organization, while Development for Growth translates our beliefs and values into desired leader competencies.

Together, these processes provide a roadmap for the way we work, deliver results, and build high-performing teams.

Additionally, we design our Total Rewards programs to attract and retain talented, curious people with a growth mindset and a passion for innovation, collaboration, and continuous improvement.

We offer leading programs that inspire and reward superior performance, are equitable, and foster an inclusive, diverse, and healthy global workforce.

We offer leading programs that inspire and reward superior performance, are equitable, align compensation structure with delivering long-term shareholder value, and foster an inclusive, diverse, and healthy global workforce.

We also invest in our people at every level through our growth and development experiences.

1 unchanged sentence

Collectively, these experiences build skills, strengthen performance, and prepare our employees for challenging opportunities.

With our strong and evolving portfolio, employees have the opportunity to accelerate their career across multiple industries, meaningfully contributing to customer success and impact in the world.

Employee Experience and Communication

3 unchanged sentences

Our employee experience survey approach continues to mature through quarterly touchpoints and leader accountability.

In the fourth quarter of 2022, over 80% of our global team completed our biannual, full census survey, delivering steady gains in both overall engagement and in inclusion and belonging that resulted in historically high ratings of 78% and 82%, respectively.

Consistent with prior years, our results continue to inform both management and our Board of Directors on appropriate actions to enhance our employee experience.

In our last comprehensive census survey in 2023, over 80% of our global team responded, delivering steady gains in both overall engagement and in inclusion and belonging that resulted in historically high ratings of 78% and 82%, respectively.

Our results continue to inform both management and our Board of Directors on appropriate actions to enhance our employee experience.

Government Contracts

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For access to the UK market, manufacturers must obtain a UKCA Certificate and affix a UKCA mark to their medical devices.

However, the EEA’s CE mark will be accepted in the UK until July 1, 2023.

Any medical devices we manufacture and distribute are subject to pervasive and continuing regulation by the FDA and certain state and certain other comparable foreign authorities.

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Risk Factors.”

Competition Laws

Our global operations are subject to complex and changing antitrust and competition laws and regulations, including conflicting laws and regulations in different jurisdictions that have increased the cost of conducting our global operations.

We have implemented policies and procedures designed to ensure compliance with applicable global laws and regulations, but there can be no assurance of complete and consistent compliance with all laws and regulations given the complex and evolving policies implemented by governments around the world.

If we are found to have violated laws and regulations, it could materially adversely affect our business, reputation, results of operations and financial condition.

Whistleblower Laws

We operate in jurisdictions, such as the U.S.

and Europe, with significant legal whistleblower protection compliance reports for potential violations internally and to government authorities.

In the European Union, the Whistleblower Directive has been implemented that affords significant protections to internal and external whistleblowers.

Non-compliance with the Whistleblower Directive can result in fines and other penalties against entities.

In the U.S., the Securities and Exchange Commission can provide monetary awards to whistleblowers that report securities law violations to the Commission.

laws, such as the False Claims Act, also include strong financial incentives for whistleblowers to bring lawsuits against companies with healthcare products and services such as Fortive.

In addition, the False Claims Act permits whistleblowers to bring a lawsuit on behalf of the government and share in any monetary recovery, even if the government decides not to intervene in the case.

International Operations

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business