UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-10235
IDEX CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
3100 Sanders Road, Suite 301, Northbrook, Illinois
(Address of principal executive offices)
36-3555336
(I.R.S. Employer
Identification No.)
60062
(Zip Code)
Registrant’s telephone number, including area code: (847) 498-7070
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01 per share
IEX
New York Stock Exchange
Securities Registered Pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes ¨ No þ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
☑ Accelerated filer ☐
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Non-accelerated filer ☐
Smaller reporting company
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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of
its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based
compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No þ
The aggregate market value, as of the last business day of the registrant’s most recently completed second fiscal quarter, of the common
stock (based on the June 30, 2023 closing price of $215.26) held by non-affiliates of IDEX Corporation was $16,267,670,265.
The number of shares outstanding of IDEX Corporation’s common stock, par value $.01 per share, as of February 16, 2024 was
75,644,654.
Portions of the proxy statement with respect to the IDEX Corporation 2024 annual meeting of stockholders (the “2024 Proxy
Statement”) are incorporated by reference into Part III of this Form 10-K.
DOCUMENTS INCORPORATED BY REFERENCE
Table of Contents
PART I.
Item 1.
Business
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 1C. Cybersecurity
Item 2.
Properties
Item 3.
Legal Proceedings
Item 4. Mine Safety Disclosures
PART II.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6.
[Reserved]
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 8.
Financial Statements and Supplementary Data
Management’s Report on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Balance Sheets
Consolidated Statements of Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Note 1. Significant Accounting Policies
Note 2. Acquisitions and Divestitures
Note 3. Collaborative Investments
Note 4. Balance Sheet Components
Note 5. Revenue
Note 6. Goodwill and Intangible Assets
Note 7. Borrowings
Note 8. Fair Value Measurements
Note 9. Leases
Note 10. Commitments and Contingencies
Note 11. Share Repurchases
Note 12. Income Taxes
Note 13. Business Segments and Geographic Information
Note 14. Restructuring Expenses and Asset Impairments
Note 15. Share-Based Compensation
Note 16. Other Comprehensive Income (Loss)
Note 17. Retirement Benefits
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9.
Item 9A. Controls and Procedures
Item 9B. Other Information
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
PART III.
Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accountant Fees and Services
PART IV. Item 15. Exhibits and Financial Statement Schedules
Item 16. Form 10-K Summary
Signatures
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Cautionary Statement Under the Private Securities Litigation Reform Act
This report contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of
1995, as amended. These statements may relate to, among other things, the Company’s full year 2024 focus and the
assumptions underlying these expectations, plant and equipment capacity for future growth, the duration of supply chain
challenges, anticipated future acquisition behavior and capital deployment, expectations regarding customer destocking efforts
and future order stabilization and lead time, expectations regarding market sector contraction, recovery, stabilization or growth,
availability of cash and financing alternatives and the anticipated benefits of the Company’s recent acquisitions, and are
indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “expects,” “projects,” “forecasts,”
“should,” “could,” “will,” “management believes,” “the Company believes,” “the Company intends” and similar words or
phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from
those anticipated at the date of this report.
The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic
conditions in the U.S. and other countries around the world, including uncertainties in the financial markets and adverse
developments affecting the financial services industry; pricing pressures, including inflation and rising interest rates, and other
competitive factors and levels of capital spending in certain industries, all of which could have a material impact on order rates
and the Company’s results; the impact of catastrophic weather events, natural disasters and public health threats; economic and
political consequences resulting from terrorist attacks and wars, which could have an adverse impact on the Company's business
by creating disruptions in the global supply chain and by potentially having an adverse impact on the global economy; the
Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity
incident; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and
economic conditions in foreign countries in which the Company operates; developments with respect to trade policy and tariffs;
interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and
material costs; risks related to environmental, social and corporate governance issues, including those related to climate change
and sustainability; and developments with respect to contingencies, such as litigation and environmental matters, and the other
risk factors discussed in Item 1A, “Risk Factors” of this annual report. The forward-looking statements included here are only
made as of the date of this report, and management undertakes no obligation to publicly update them to reflect subsequent
events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking
statements when evaluating the information presented here.
Table of Contents
Item 1.
Business.
Overview
PART I
IDEX Corporation (“IDEX” or the “Company”) is an applied solutions provider serving niche markets worldwide. IDEX is
a high-performing global enterprise committed to making trusted solutions that improve lives and are mission critical
components in everyday life. Substantially all of the Company’s business activities are carried out through over 50 wholly-
owned subsidiaries with shared values of Trust, Team and Excellence. IDEX’s diverse family of businesses is innovative and
inquisitive in its quest to solve customers’ most challenging applied technology problems. These businesses operate with a high
degree of autonomy, yet are all united by employing The IDEX Difference, a philosophy of great teams who embrace the 80/20
principle while remaining hyper-focused on serving customers. IDEX was incorporated in Delaware on September 24, 1987.
End Markets and Products
The following table summarizes the percentage of total IDEX sales generated by each end market:
The Company has three reportable segments: Fluid & Metering Technologies (“FMT”), Health & Science Technologies
(“HST”) and Fire & Safety/Diversified Products (“FSDP”). The segments are structured around how to best serve customer
needs, with each segment consisting of businesses that have product and end market similarities as well as common distribution
methods and production processes. This structure enables management efficiency, aligns IDEX’s operations with its focus on
organic growth, strategic acquisitions and capital allocation priorities and provides transparency about the Company’s
performance to external stakeholders.
1
IDEX Corporation2023 End MarketsIndustrial: 19%Fire & Safety: 12%Energy: 9%Life Sciences: 8%Water: 8%Semiconductor: 7%Automotive: 6%Analytical Instruments: 6%Food & Pharma: 5%Paint: 5%Other: 5%Agriculture: 4%Chemical: 4%Aerospace/Defense: 2% Table of Contents
IDEX believes that each of its reporting units is a leader in its products and services. The Company also believes that its
strong financial performance has been attributable to its ability to design and engineer specialized quality products coupled with
its ability to successfully identify, acquire and integrate strategic acquisitions. The table below illustrates the three reportable
segments and the reporting units within each segment.
FMT
HST
FSDP
Scientific Fluidics & Optics
Sealing Solutions
Fire & Safety
Dispensing
Performance Pneumatic Technologies
BAND-IT
Material Processing Technologies
Pumps
Water
Energy
Valves
Agriculture
The table below illustrates the share of Net sales and Adjusted EBITDA contributed by each segment on the basis of total
segments (not total Company) for the years ended December 31, 2023 and 2022.
Year Ended December 31, 2023
Year Ended December 31, 2022
Net sales
Adjusted EBITDA(1)
FMT
38%
42%
HST
40%
37%
FSDP
22%
21%
FMT
37%
39%
HST
42%
42%
FSDP
21%
19%
(1) Segment Adjusted EBITDA excludes the impact of unallocated corporate costs of $84.6 million and $85.7 million for
the years ended December 31, 2023 and 2022, respectively.
2
Table of Contents
FLUID & METERING TECHNOLOGIES SEGMENT
The FMT segment designs, produces and distributes positive displacement pumps, valves, small volume provers, flow
meters, injectors and other fluid-handling pump modules and systems and provides flow monitoring and other services for the
food, chemical, general industrial, water and wastewater, agriculture and energy industries.
The following table summarizes the percentage of total FMT sales generated by each end market:
The following discussion describes the reporting units included in the FMT segment:
Pumps. Pumps is a leading manufacturer of rotary internal gear, external gear, vane and rotary lobe pumps, custom-
engineered original equipment manufacturer pumps, strainers, gear reducers and engineered pump systems. Pumps primarily
uses independent distributors to market and sell its products. Pumps is comprised of the following businesses:
•
Viking Pump is a global leader in pumping solutions, with products including internal gear, external gear, vane, lobe
and circumferential piston pumps, as well as parts, kits and accessories designed to support customers worldwide.
With a focus on industrial applications like chemicals, polyurethane foam and asphalt; energy applications like oil
transfer and glycol dehydration; and hygienic applications like biopharma, food and beverage, Viking Pump delivers
proven liquid transfer pumping solutions for a wide variety of thin to viscous applications. Viking Pump maintains
operations in Cedar Falls, Iowa, with locations in Windsor, Canada (Viking Pump Canada), Shannon, Ireland (IDEX
Pump Technologies) and Eastbourne, England (Viking Pump Hygienic).
• Warren Rupp manufactures air-operated double diaphragm pump products (which includes Sandpiper and Versamatic
products) used for abrasive and semisolid materials as well as for applications where product degradation is a concern
or where electricity is not available or should not be used. Warren Rupp products primarily serve the chemical, paint,
food processing, electronics, construction, utilities, oil and gas, mining and industrial maintenance markets. Warren
Rupp maintains operations in Mansfield, Ohio.
ABEL designs and manufactures highly engineered reciprocating positive displacement pumps used for mine
dewatering, back filling, transfer of mine tailings, municipal sledge and wastewater applications in a variety of end
markets including mining, power, water and wastewater as well as other general industries. ABEL maintains
operations in Büchen, Germany and Mansfield, Ohio and has a facility in Madrid, Spain.
•
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Fluid & Metering Technologies2023 End MarketsIndustrial: 31%Water: 20%Energy: 18%Agriculture: 11%Chemical Processing: 10%Semiconductor: 5%Food & Pharma: 3%Other: 1%Automotive: 1% Table of Contents
Water. Water is a leading provider of metering technology, flow monitoring products and underground surveillance
services for wastewater markets, as well as alloy and non-metallic gear pumps and peristaltic pumps. Water is comprised of the
following businesses:
•
•
•
•
ADS’ products and services provide comprehensive integrated solutions that enable industry, municipalities and
government agencies to analyze and measure the capacity, quality and integrity of wastewater collection systems,
including the maintenance and construction of such systems. ADS maintains operations in Huntsville, Alabama and
various other locations in the United States, Canada and Australia.
iPEK, Envirosight and WinCan combined are the leading providers of integrated solutions for managing the complete
lifecycle of water infrastructure assets and process workflows. Their products and solutions include sewer crawlers,
inspection and monitoring systems and software applications that allow teams to identify, anticipate and correct water
system issues, automate and simplify inspection processes, improve infrastructure asset management and support
distributed teams and cloud-based collaboration. MyTana and Pipeline Renewal Technologies design and build
products used to clean and repair infrastructure in the sewer and drain industry. iPEK maintains operations in
Hirschegg, Austria and Sulzberg, Germany. Envirosight and Pipeline Renewal Technologies maintain operations in
Randolph, New Jersey and Callery, Pennsylvania. WinCan has development centers in Murten, Switzerland and
Krakow, Poland. MyTana maintains operations in St. Paul, Minnesota. All entities have various sales and service
outlets across the United States and Europe.
Trebor is a leader in high-purity fluid handling products, including air-operated diaphragm pumps and deionized
water-heating systems. Trebor products are used in the manufacturing of semiconductors, disk drives and flat panel
displays. Trebor maintains operations in West Jordan, Utah.
Pulsafeeder products are used to introduce precise amounts of fluids into processes to manage water quality and
chemical composition. Its markets include industrial and municipal water and wastewater treatment, oil and gas, power
generation, chemical and hydrocarbon processing and swimming pools. Pulsafeeder serves these markets by producing
hydraulic and mechanical diaphragm pumps, rotary pumps, peristaltic pumps and controllers. Pulsafeeder maintains
operations in Rochester, New York and Punta Gorda, Florida.
Energy. Energy is a leading supplier of flow meters, small volume provers, electronic registration and control products,
rotary vane and turbine pumps, reciprocating piston compressors and terminal automation control systems. Energy is comprised
of the following businesses:
•
•
•
Advanced Flow Solutions (“AFS”) consists of the Company’s Corken, Liquid Controls and SAMPI businesses.
Products for Liquid Controls and SAMPI consist of positive displacement flow meters as well as electronic registration
and control products, including mobile and stationary metering installations for wholesale and retail distribution of
petroleum and liquefied petroleum gas, aviation refueling and industrial metering and dispensing of refined liquids and
gases. Corken products consist of positive displacement rotary vane pumps, single and multistage regenerative turbine
pumps and small horsepower reciprocating piston compressors in the oil, gas and industrial markets. AFS maintains
operations in Oklahoma City, Oklahoma (Corken and Liquid Controls products) and Altopascio, Italy (SAMPI
products).
Toptech supplies terminal automation hardware and software to control and manage inventories as well as
transactional data and invoicing to customers in the oil, gas and refined-fuels markets. Toptech maintains operations in
Longwood, Florida and Zwijndrecht, Belgium.
Flow MD engineers and manufactures small volume provers that ensure custody transfer accuracy in the oil and gas
market. Flow MD maintains operations in Phoenix, Arizona.
Valves. Valves is a leader in the design, manufacture and sale of specialty valve products for use in the chemical, petro-
chemical, energy and sanitary markets as well as a leading producer of fluoroplastic lined corrosion-resistant magnetic drive
and mechanical seal pumps, shut-off, control and safety valves for corrosive, hazardous, contaminated, pure and high-purity
fluids. Valves is comprised of the following businesses:
•
•
Richter and Aegis produce superior solutions for demanding and complex pump and valve applications in the process
industry as well as specialty chemical processing valves for use in the chemical, petro-chemical, pharmaceutical,
energy and battery industries. Richter and Aegis maintain operations in Kempen, Germany; Suzhou, China; Vadodara,
India and Geismar, Louisiana.
Alfa Valvole and OBL manufacture specialty valve products used in various industrial fields for fluid control, in both
gas and liquid form, in all sectors of plant engineering, cosmetics, detergents, food industry, electric energy,
pharmaceutical, chemical plants, petrochemical plants, oil, heating/air conditioning and also on ships, ferries and
marine oil platforms. Alfa Valvole and OBL maintain operations in Cassorezzo, Italy.
4
Table of Contents
Agriculture. Agriculture consists of the following businesses:
•
Banjo is a provider of special purpose, severe-duty pumps, valves, fittings and systems used in liquid handling. Its
products are used in agricultural and industrial applications. Banjo maintains operations in Crawfordsville, Indiana and
has distribution facilities in Didam, the Netherlands and Valinhos, Brazil.
KZValve is a leading manufacturer of electric valves and controllers used primarily in agricultural applications.
KZValve maintains operations in Greenwood, Nebraska.
•
HEALTH & SCIENCE TECHNOLOGIES SEGMENT
The HST segment designs, produces and distributes a wide range of precision fluidics, positive displacement pumps,
powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing
solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic
mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and
coatings, laboratory and commercial equipment and precision photonic solutions.
The following table summarizes the percentage of total HST sales generated by each end market:
The following discussion describes the reporting units included in the HST segment:
Scientific Fluidics & Optics. Scientific Fluidics & Optics is a global authority in life science fluidics, optics, microfluidics
and photonics and the movement of liquids and gases in critical applications, offering a diverse set of technologies, expertise,
capabilities and product solutions across numerous market segments. Scientific Fluidics & Optics is comprised of the following
businesses:
•
IDEX Health & Science (“IH&S”) consists of IH&S Life Science Fluidics, IH&S Life Science Optics and IH&S
Microfluidics. The IH&S Life Science Fluidics technology and product portfolio consists of column hardware,
degassers, fluidic connections, fluidic manifolds, pumps and pump components, sensors, refractive index detectors,
valves and fluidics sub-systems. The IH&S Life Science Optics technology and product portfolio consists of
illumination light engines, optical filters, optical subsystems, sensors, cameras and camera imaging objectives. IH&S
Microfluidics includes thinXXS Microtechnology, a global leader in developing and producing microfluidic systems,
components and consumables serving the point of care diagnostic and digital polymerase chain reaction markets.
IH&S serves the life science optics, chromatography, mass spectrometry, in-vitro diagnostics/biotech fluidics and
fluidic connections markets. IH&S maintains operations in Bristol, Connecticut; Carlsbad, California; Middleboro,
5
Health & Science Technologies2023 End MarketsLife Sciences: 20%Industrial: 15%Analytical Instruments: 14%Semiconductor: 13%Food & Pharma: 11%Automotive: 7%Other: 6%Medical/Dental: 5%Energy: 5%Aerospace/Defense: 4% Table of Contents
•
Massachusetts; Oak Harbor, Washington; Rochester, New York; Rohnert Park, California; Zweibruken, Germany and
Saitama, Japan.
IDEX Optical Technologies consists of Advanced Thin Films, CVI Laser Optics, CVI Infrared Optics and Iridian
Spectral Technologies. The technology and product portfolio consists of polarization optics, windows, optical filters,
beamsplitters, lenses, waveplates, monolithic, optics, lens assemblies, imaging assemblies, shutters optical subsystems
and detector integration. IDEX Optical Technologies serves the semiconductor metrology, satellite optical
communications, defense, aerospace and remote sensing, additive manufacturing, laser material processing, laser
communications, telecommunications and life science markets. The businesses maintain operations in Albuquerque,
New Mexico; Boulder, Colorado; Didam, the Netherlands; Whetstone, England; and Ottawa, Canada.
• Muon Group manufactures highly precise flow paths in a variety of materials that enable the movement of various
liquids and gases in critical applications within the medical, semiconductor, food processing, digital printing and
filtration markets. The group includes LouwersHanique, Veco, Millux, Tecan and Atul, which have critical technical
expertise in precision and tolerances for different materials, from metals and glass to plastics and ceramics. The
business maintains operations in Hapert, the Netherlands; Eerbeek, the Netherlands; Wijchen, the Netherlands; Dorset,
England; and Pune, India.
STC Material Solutions specializes in the design and manufacturing of technical ceramics and hermetic sealing
products in mission critical applications within the semiconductor, aerospace and defense, industrial technology,
medical technology and energy markets. The business maintains operations in St. Albans, Vermont, with additional
operations in Santa Ana, California.
•
Sealing Solutions. Sealing Solutions focuses on providing special seals and related products and solutions in diversified
markets. Sealing Solutions is comprised of the following businesses:
•
•
•
•
Precision Polymer Engineering is a provider of proprietary high performance seals and advanced sealing solutions for
a diverse range of global industries and applications, including hazardous duty, analytical instrumentation,
semiconductor, process technologies, oil and gas, pharmaceutical, electronics and food applications. Precision Polymer
Engineering maintains operations in Blackburn, England and has an additional manufacturing facility in Brenham,
Texas. Precision Polymer Engineering also entered into a joint venture with a third party to manufacture and sell high
performance elastomer seals for the oil and gas industry to customers within the Kingdom of Saudi Arabia as well as
export these high performance elastomer seals outside of the Kingdom of Saudi Arabia. The joint venture maintains
operations in Dammam, Saudi Arabia.
FTL Seals Technology maintains operations in Leeds, England and specializes in the design and application of high
integrity rotary seals, specialty bearings and other custom products for the mining, power generation and marine
markets.
SFC Koenig is a producer of highly engineered expanders and check valves for critical applications across the
transportation, hydraulic, aviation and medical markets. SFC Koenig maintains operations in Dietikon, Switzerland
and has additional facilities in North Haven, Connecticut; Illerrieden, Germany and Suzhou, China.
The Roplan businesses are global manufacturers of custom mechanical and shaft seals for a variety of end markets
including food and beverage, marine, chemical, wastewater and water treatment. Roplan maintains operations in
Sweden and also has operations in Ningbo, China; Berkshire, England and Madison, Wisconsin.
Performance Pneumatic Technologies. Performance Pneumatic Technologies provides specialized, high-performing air
moving technologies across a wide array of industries. Performance Pneumatic Technologies is comprised of the following
businesses:
•
•
Gast is a leading manufacturer of air-moving products, with a core technology around fractional horsepower (under 1
hp) air compressors, vacuum pumps and air motors. Gast products are used in a variety of long-life applications
requiring a quiet, clean source of moderate vacuum or pressure and primarily serve the medical equipment,
environmental equipment, computers and electronics, printing machinery, paint mixing machinery, packaging
machinery, graphic arts and industrial manufacturing markets. Gast maintains operations in Benton Harbor, Michigan
and has a logistics and commercial center in Redditch, England.
Airtech designs and manufactures a wide range of highly-engineered pressure technology products, with a core
technology around high performance blowers (2 hp and above) and pneumatic valves for a variety of end markets,
including alternative energy, food processing, medical, packaging and transportation. Airtech maintains operations in
Rutherford, New Jersey and has other manufacturing operations in Linthicum Heights, Maryland; Wilmington, North
Carolina; Werneck, Germany and Shenzhen, China.
6
Table of Contents
Material Processing Technologies. Material Processing Technologies provides process equipment and global support
service solutions that meet customer specific requirements with a focus in the pharmaceutical, food, battery and chemical
markets. Material Processing Technologies is comprised of the following businesses:
•
IDEX MPT, Inc., which includes Quadro, Steridose, Fitzpatrick, Microfluidics, and Matcon, maintains operations in
Waterloo, Canada; Westwood, Massachusetts; Delran, New Jersey; Evesham, England; Ahmedebad, India and
Shanghai, China.
◦
◦
◦
Quadro is a leading provider of powder processing solutions for the pharmaceutical, food, personal care and
chemical markets. Quadro’s core capabilities include fine milling, emulsification and special handling of
liquid and solid particulates for laboratories, through the pilot phase to full scale up with production scale
processing.
Steridose is a leading designer and manufacturer of magnetic coupled mixers and diaphragm valves for the
global biopharmaceutical industry.
Fitzpatrick is a global leader in the design and manufacture of process technologies for the pharmaceutical
and chemical sectors. Fitzpatrick designs and manufactures customized size reduction and roll compaction
systems to support their customers’ product development and manufacturing processes.
◦ Microfluidics is a global leader in the design and manufacture of laboratory and production equipment used in
the production of micro and nano scale materials for the pharmaceutical, biologics, personal care and
chemical markets. Microfluidics is the exclusive producer of the Microfluidizer family of high shear fluid
processors for uniform nano-emulsion formation, lipid nanoparticle creation, robust cell disruption and
particle size reduction.
◦ Matcon is a global leader in creating flexible material processing solutions for high value powders used in the
manufacture of foods, pharmaceuticals, batteries, plastics and fine chemicals. Matcon’s innovative products
consist of the original cone valve powder discharge system and filling, mixing and packaging systems, all of
which support its customers’ automation and process requirements. These products are critical to its
customers’ need to maintain clean, reliable and repeatable formulations of prepackaged foods and
pharmaceuticals while helping them achieve lean and agile manufacturing.
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Table of Contents
FIRE & SAFETY/DIVERSIFIED PRODUCTS SEGMENT
The FSDP segment designs, produces and distributes firefighting pumps, valves and controls, rescue tools, lifting bags and
other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices used in
a variety of industrial and commercial applications; and precision equipment for dispensing, metering and mixing colorants and
paints used in a variety of retail and commercial businesses.
The following table summarizes the percentage of total FSDP sales generated by each end market:
The following discussion describes the reporting units included in the FSDP segment:
Fire & Safety. Fire businesses produce truck-mounted and portable fire pumps, stainless steel and brass valves, monitors,
nozzles, foam and compressed air foam systems, pump modules and pump kits, electronic controls and information systems,
conventional and networked electrical systems and mechanical components for the fire and specialty vehicle markets. Safety
businesses produce hydraulic, battery, gas and electric-operated rescue equipment, hydraulic re-railing equipment, hydraulic
tools for industrial applications, recycling cutters, pneumatic lifting and sealing bags for vehicle and aircraft rescue,
environmental protection and disaster control and jumping cushions for building rescue for the rescue market. Fire & Safety’s
customers are original equipment manufacturers as well as public and private fire and rescue organizations. Fire & Safety
maintains operations in Ocala, Florida (Class 1 and Hale products); Warwick, England (Godiva products); Wooster and
Columbus, Ohio (Akron Brass and Weldon products); Ballendorf, Germany (AWG Fittings products); Shelby, North Carolina
(Hurst Jaws of Life® products); Tianjin, China (Dinglee products); Erlangen, Germany (Lukas products) and Zulpich, Germany
(Vetter products).
Dispensing. Dispensing businesses produce precision equipment for dispensing, metering and mixing colorants and paints
used in a variety of retail and commercial businesses around the world. Dispensing is a global supplier of such equipment
focused on the architectural paints segment used in retail and commercial stores, hardware stores, home centers and paint and
specialized stores as well as in some industrial settings. Dispensing maintains operations in Sassenheim, the Netherlands;
Wheeling, Illinois and Sandani, India as well as multiple sales offices around the world.
BAND-IT. BAND-IT is a leading producer of high-quality stainless steel banding, buckles and clamping systems. The
BAND-IT brand is highly recognized worldwide. BAND-IT products are used for securing exhaust system heat and sound
shields, airbags, industrial hose fittings, traffic signs and signals, electrical cable shielding, identification and bundling and in
numerous other industrial and commercial applications. BAND-IT products primarily serve the automotive, aerospace, energy,
8
Fire & Safety/Diversified Products 2023 End MarketsFire Suppression: 38%Dispensing: 23%Rescue Tools: 17%Automotive: 12%Industrial: 6%Aerospace: 2%Energy: 1%Other: 1% Table of Contents
utility, municipal, cable management and general industrial markets. BAND-IT maintains operations in Denver, Colorado, with
additional operations in Staveley, England.
INFORMATION APPLICABLE TO THE COMPANY’S BUSINESS IN GENERAL AND ITS SEGMENTS
Competitors
The Company’s businesses participate in highly competitive markets. IDEX believes that the principal points of
competition are product quality, design and engineering capabilities, product development, conformity to customer
specifications, quality of post-sale support, timeliness of delivery and effectiveness of the Company’s distribution channels.
Principal competitors of the FMT segment are the Pumps Group (Blackmer, Wilden and Ebsray products) of Dover
Corporation (with respect to pumps and small horsepower compressors used in liquefied petroleum gas distribution facilities,
rotary gear pumps and air-operated double-diaphragm pumps); and Ingersoll Rand’s Precision and Science Technologies (PST)
division (with respect to metering, control, rotary gear pumps and air operated double-diaphragm pumps).
Principal competitors of the HST segment are the Thomas division of Ingersoll Rand (with respect to vacuum pumps and
compressors); Parker Hannifin (with respect to sealing devices); Valco Instruments Co., Inc. (with respect to connections,
degassers and valves); Alluxa (with respect to filters); Jenoptik (with respect to optical assemblies in life sciences); and Tecan
Trading AG (with respect to the life science fluidics market).
Principal competitors of the FSDP segment are Waterous Company, a unit of American Cast Iron Pipe Company (with
respect to truck-mounted firefighting pumps); Holmatro, Inc. (with respect to rescue tools); Corob S.p.A. (with respect to
dispensing and mixing equipment for the paint industry); and Panduit Corporation (with respect to stainless steel bands, buckles
and clamping systems).
Customers
In 2023, the Company did not have any customers that accounted for more than 3% of net sales. Since the Company serves
a wide variety of markets, customer concentrations are not significant.
International
The Company’s products and services are available worldwide, with manufacturing operations in more than 20 countries.
The businesses located outside the U.S. are primarily based in Germany, India, the Netherlands, the United Kingdom, Italy,
Switzerland, Canada and China. The Company’s geographic diversity allows it to draw on the skills of a global workforce,
provides greater stability to its operations, allows the Company to drive economies of scale, provides revenue streams that may
help offset economic trends that are specific to individual economies and offers the Company an opportunity to access new
markets for products.
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The following table illustrates sales to customers within and outside the U.S. as a percentage of total sales for total IDEX as
well as by segment and by reporting unit for the year ended December 31, 2023:
FMT
Pumps
Water
Energy
Valves
Agriculture
HST
Scientific Fluidics & Optics
Sealing Solutions
Performance Pneumatic Technologies
Material Processing Technologies
Micropump(1)
FSDP
Fire & Safety
Dispensing
BAND-IT
IDEX
Domestic
56%
International
44%
57%
57%
64%
13%
75%
44%
40%
21%
81%
37%
21%
52%
53%
46%
56%
50%
43%
43%
36%
87%
25%
56%
60%
79%
19%
63%
79%
48%
47%
54%
44%
50%
(1) Revenue from Micropump, Inc. (“Micropump”) (sold on August 3, 2023) has been included in the Company’s
Consolidated Statements of Income through the date of disposition. See Note 2 in Part II, Item 8, “Financial Statements and
Supplementary Data” for further detail.
Shared Services
The Company has production facilities in Suzhou, China, Vadodara, India and Ahmedabad, India that support multiple
business units. The Company completed an expansion of its China facility in late 2022 and its India facility in 2023 in an effort
to increase its footprint in these emerging markets as the Company believes there is tremendous potential for growth across all
segments. In addition, the Company expanded its facilities in Singapore and Dubai in 2022 to support growth in Southeast Asia
and the Middle East. IDEX also has personnel in China, India, Dubai, Mexico, Latin America and Singapore that provide sales,
marketing, product design, engineering and sourcing support to its business units in those regions, as well as personnel in
various locations in South America, Southeast Asia, the Middle East, Korea and Japan to support sales and marketing efforts in
those regions.
Raw Materials
The Company uses a wide variety of raw materials which are generally purchased from a large number of independent
sources around the world. The Company believes it has an adequate supply of raw materials necessary to meet demand. The
Company is exposed to fluctuations in commodity pricing and inflation and attempts to control these impacts through increased
prices to customers and various other programs with its suppliers.
Suppliers
The Company manufactures many of the parts and components used in its products. Substantially all materials, parts and
components purchased by the Company are available from a large number of independent sources around the world. The
Company believes it has a sufficient number of suppliers necessary to meet demand but continues to actively evaluate its
current suppliers and identify alternative sources to manage supply chain constraints, if needed.
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Inventory and Backlog
The Company is a short cycle business and backlog is not generally considered a significant factor as relatively short
delivery periods and rapid inventory turnover are characteristic of most of the Company’s products. Even still, the Company
regularly and systematically adjusts production schedules and quantities based on the flow of incoming orders. While backlog
was elevated in recent years due to global supply chain constraints, which extended lead times, shifted customer order patterns
and resulted in increased inventory to support production, customer destocking efforts in 2023 have resulted in orders
stabilizing with backlog and lead times returning to more normalized levels. The Company remains focused on delivering
products and services to customers and continues to actively manage inventory levels. Further, the Company has not
historically experienced significant order cancellations and does not expect significant order cancellations in the future.
Government Regulations
Our compliance with federal, state and local laws and regulations, including those related to environmental, international
trade, labor and employment, human rights, tax, anti-bribery and competition matters, did not have a material effect upon our
capital expenditures, earnings or competitive position during the fiscal year ended December 31, 2023.
Employees
At December 31, 2023, the Company had approximately 8,800 employees. Approximately 4% of its employees are
covered by various collective bargaining agreements in the U.S. which will expire at various times between now and June 2028.
There are no collective bargaining agreements in the U.S. that will expire within one year. Management believes that the
Company has a positive relationship with its employees. The Company historically has been able to renegotiate its collective
bargaining agreements satisfactorily, with its last work stoppage occurring in March 1993.
Human Capital Management
The Company recognizes that its success would not be possible without the valuable contributions of its workforce and is
committed to creating a work environment where employees can thrive and grow. Our workplaces promote entrepreneurialism
and autonomy while providing a strong safety net of benefits, training and personal development. Investments in attracting,
retaining and developing great teams enables the Company to accomplish its goals and deliver innovative customer solutions.
The Company’s corporate Human Capital strategy is overseen by its Chief Human Resource Officer (“CHRO”). Annually, the
CHRO presents a talent review to the Company’s Board of Directors focused on senior leader team development, the human
capital strategy action plan and succession planning for senior management to ensure that the Board is informed and to seek
alignment on plans about human capital management for business continuity and success.
The Company’s workforce advancement strategy is focused through investment in three pillars: skill-building for the entire
workforce, leadership development aligned with the Company’s methodology and fostering a premier culture. The Company’s
approach to performance management, talent development, talent management and employee engagement helps drive long-term
value by providing employees with opportunities to do and be their best both individually and as teams.
As part of our Organizational Talent Cycle process, we conduct regular in-depth talent reviews of our workforce teams and
culture with business leaders, identify “stretch” opportunities to grow team members and connect our decentralized businesses
by moving skilled employees from one business unit to another as opportunities and interest arise. Employees and leaders have
performance and development conversations throughout the year, talking about business and development goals, reviewing
progress, recognizing accomplishments, giving balanced feedback and identifying opportunities for improvement. Open, honest
dialog about performance, development and career growth supports our values of Trust, Team and Excellence and The IDEX
Difference, building trust and helping us fulfill our purpose.
The Company offers agile development solutions to support unique needs and drive long-term value. Employees have
access to resources that enhance and build capabilities for success in their current position or future roles, including specific
individual development plans and local training and development programs. Each year, the Company invests in a Global
Leadership Conference for senior leaders to align on strategic vision and priorities and build core leadership skills. In support of
our growth strategy and culture, the Company also sponsors accelerated, on-the-job learning for key leaders in our pipeline
through the IDEX Academy’s global leadership development programs. These programs provide opportunities for emerging
leaders across geographies and businesses to come together to practice and apply new leadership behaviors, share best practices,
solve business challenges and build strong support networks. Our learning curriculum includes instructor-led, self-paced and
blended solutions that have been created internally or sourced from external partners. These offerings also help to develop
future and potential leaders in the IDEX leadership methodology. Additionally, the Company sponsored over 150 senior leaders
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to participate in a coaching skill-building program in 2023 with continued on-the-job performance support and reinforcement
designed to accelerate the growth and development of our high-performing talent and further promote our growth culture.
The Company also enables employee development and growth by offering eligible U.S. employees the opportunity to
participate in the Tuition Reimbursement program. Through the program, employees can have certain expenses from secondary
educational institutions reimbursed up to $5,250 per year.
The Company prioritizes hiring team members who will embrace the team-driven culture and also places considerable
emphasis on leveraging the talented employees within the Company’s internal pipeline, filling many leadership positions with
Company employees.
Part of the IDEX Difference is building and engaging great teams. Employee engagement is essential to create a diverse,
inclusive and equitable culture where all employees thrive and have an equal opportunity to do and be their best. We believe
our employees have a high level of engagement as the Company’s employee engagement index remains above the average for
manufacturing companies at 74 percent, as measured by the Company’s employee engagement survey. The Company’s
investments in people have led to significant increases in favorability for career development for all employees. Additionally,
the important capability-building investments of the Global Leadership Conference and coaching programs have positively
impacted senior leader perceptions of learning and development, support for skill and career development and increased
confidence of being able to achieve career goals at IDEX.
Diversity, Equity & Inclusion
The Company has always recognized diversity as foundational to creativity and resilience; the three pillars of Innovation,
Diversity and Excellence form the acronym that is the Company’s name, IDEX. Gender, ethnic, cultural and other human
diversity is critical to the Company’s success.
In 2022, the Company launched its Diversity, Equity and Inclusion (“DEI”) strategic roadmap. In 2023, progress against
the strategic roadmap included: (1) implementation of mentoring based on employee resource groups (“ERGs”) and talent
development networks; (2) delivery of Inclusive Leadership Training; (3) increased participation in IDEX ERGs; (4)
continuation of IDEX’s performance-based DEI goals for senior leaders; and (5) expansion of talent development and recruiting
efforts.
IDEX has built a reputation as a respected employer with a welcoming culture, where 80% of employees feel a strong
sense of belonging, according to our 2023 employee engagement survey.
The Company’s Board of Directors now comprises 30% women and 30% members who identify with racial/ethnic
minority groups. Additionally, the representation of women in leadership at the Company remained steady in 2023. From 2022
to 2023, and as of December 31, 2023, the percentage of women globally in senior leadership roles remained constant at 31%.
The percentage of women globally in people leadership roles remained at 22%. During the same time period, and as of
December 31, 2023, the number of racial/ethnic minority senior leaders in the U.S. increased from 21% to 22%, and the number
of racial/ethnic minority people managers in the U.S. increased from 19% to 20%. The foregoing representation numbers do not
include employee populations associated with acquisitions completed in 2023.
Further, the Company has conducted pay equity analyses for U.S. employees since 2018 to ensure that employees’ actual
pay was substantially similar to their predicted pay. Where appropriate, the Company provided base pay adjustments for
employees that were outliers from their predicted pay, further reinforcing the Company’s commitment to diversity and a culture
of inclusion, equality and respect.
Employee Pay and Benefits
Attracting and retaining top talent is critical to the success of the Company’s business. The Company offers a highly
competitive pay and benefits package for employees in all the markets where it operates. The performance-based pay packages
provide many employees with short-term performance incentives. The Company also provides equity-based, long-term
incentives to its senior leaders.
The Company’s U.S. employees can participate in a 401(k) retirement plan and an Employee Stock Purchase Plan, which
allows an employee to purchase IDEX stock through payroll deductions.
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Workplace Health & Safety
The Company is committed to providing a workplace that is safe for all of our employees, contractors, business partners
and visitors. The commitment to Environmental, Health, and Safety (“EH&S”) begins at the corporate and executive level. The
program is overseen by the EH&S Senior Director and the Chief Sustainability Officer, both of whom are part of the Legal
Department. Each of the Company’s businesses employ local EH&S specialists. These individuals and local safety committees,
in conjunction with the corporate team, form the basis of the global EH&S program. The Company’s corporate EH&S policies
are a key part of the global EH&S program. They apply to all of the Company’s businesses and each business is expected to
comply with policies and all EH&S laws and regulations. In addition to the corporate policies, each business develops and
implements its own health and safety policies tailored to the local business.
The Company also encourages employees enrolled in the U.S. Healthcare Benefit Plan to participate in the third-party
operated Wellness Program which provides access to annual biometric screenings, health evaluations and wellness credits that
can be earned for meeting individual wellness goals each year. In addition, a number of the business units organize
complementary wellness programs, including walking clubs, health fairs and “lunch and learns” with nutritionists for their
employees.
Worker Rights and Protection
The Company believes that a respectful workplace is free from unlawful discrimination and harassment, and this involves
more than just compliance with the law. The Company strives to create a work environment that is free of inappropriate and
unprofessional behavior and consistent with the Company’s values – a place where everyone is invited to do their best every
day and feel free to report any concerns. The Company has policies, procedures and regular training in place to protect its
workforce and prevent workplace harassment and discrimination. This includes a global Code of Business Conduct & Ethics
policy where employees agree to follow and receive annual training. The Company also maintains a global hotline where
employees are encouraged (and can choose to remain anonymous) to report any concerns or issues.
Information about Our Executive Officers
Set forth below are the names of the executive officers of the Company, their ages, years of service, the positions held by
them and their business experience.
Name
Eric D. Ashleman
Abhishek Khandelwal*
Lisa M. Anderson
Melissa S. Flores
Roopa Unnikrishnan
Age
56
47
47
41
52
Years of
Service
Position
15
11
7
13
2
Chief Executive Officer and President
Senior Vice President and Chief Financial Officer
Senior Vice President, General Counsel and Corporate Secretary
Senior Vice President and Chief Human Resources Officer
Senior Vice President, Strategy and Corporate Development
* Mr. Khandelwal rejoined IDEX in November 2023 after previously serving in various roles from 2010 to 2020.
Mr. Ashleman has served as President and Chief Executive Officer since December 2020. Prior to that, Mr. Ashleman was
Senior Vice President and Chief Operating Officer from July 2015 to December 2020, Vice President-Group Executive of the
Company’s HST and FSDP segments from January 2014 through July 2015 and President-Group Executive of the Company’s
FSDP segment from 2011 through January 2014. Mr. Ashleman joined IDEX in 2008 as the President of Gast Manufacturing.
Mr. Khandelwal has served as Senior Vice President and Chief Financial Officer since November 2023. Prior to rejoining
IDEX, Mr. Khandelwal served as Chief Financial Officer of Multi-Color Corporation, a manufacturer of printed labels for
consumer goods, from January 2022 through November 2023, and as Senior Vice President and Chief Financial Officer of
CIRCOR International, a pump & valve systems and custom engineering & design company, from April 2020 through
December 2021. From 2010 through March 2020, Mr. Khandelwal held a number of senior finance roles within IDEX, serving
most recently as Vice President of Finance Operations, Treasury and Financial Planning & Analysis for the Company.
Ms. Anderson has served as Senior Vice President, General Counsel and Corporate Secretary since February 2022. Prior to
that, Ms. Anderson served as Vice President, Associate General Counsel and Assistant Secretary from December 2017 through
February 2022 after joining IDEX as Assistant General Counsel in October 2016. Prior to joining IDEX, Ms. Anderson served
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in various roles of increasing responsibility at SunCoke Energy, Inc., most recently as Senior Counsel and Deputy Chief
Compliance Officer.
Ms. Flores has served as Senior Vice President and Chief Human Resources Officer since February 2021. Prior to that, Ms.
Flores served as Global, Vice President Talent from May 2019 through February 2021. From February 2018 through May 2019,
Ms. Flores was Group Vice President Human Resources. Prior to that she served as Vice President, Talent Management and
Development from March 2017 to February 2018, after being promoted from Director, Talent Development, a position she
served in from March 2015 to March 2017.
Ms. Unnikrishnan has served as Senior Vice President, Strategy and Corporate Development since March 2022. Prior to
that, Ms. Unnikrishnan served as the Chief Strategy Officer of Vontier from October 2020 to July 2021. From September 2016
to October 2020, Ms. Unnikrishnan was Vice President of Strategy at Harman International. Prior to her time at Harman, Ms.
Unnikrishnan led Center10 Consulting and served as Managing Director at Blackrock and Vice President of Corporate Strategy
at Pfizer.
Public Filings
Copies of the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments to those reports are made available free of charge at www.idexcorp.com as soon as reasonably practicable after
being filed electronically with the United States Securities and Exchange Commission (the “SEC”). The Company’s reports are
also available free of charge on the SEC’s website, www.sec.gov. Information on the Company’s website is not incorporated
into this Form 10-K.
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Item 1A.
Risk Factors.
For an enterprise as diverse and complex as the Company, a wide range of factors present risks to the Company and could
materially affect future developments and performance. In addition to the factors affecting specific business operations
identified in connection with the description of the Company’s operations and the financial results of its operations elsewhere in
this report, the most material of these factors are included below. Current global economic events and conditions may amplify
many of these risks. These risks are not the only risks that may affect the Company. Additional risks that the Company is not
aware of or does not believe are material at the time of this filing may also become important factors that adversely affect the
Company’s business.
Risks Related to the Company’s Operations
The Company’s Inability to Continue to Develop New Products Could Limit Sales Growth.
The Company’s ability to continue to grow organically is tied in large part to its ability to continue to develop new
products. A failure to continue to develop and deliver new, innovative and competitive products to the market could limit sales
growth and negatively impact the Company and its financial condition, results of operations and cash flow.
The Company’s Growth Strategy Includes Acquisitions and the Company May Not be Able to Make Acquisitions of Suitable
Candidates or Integrate Acquisitions Successfully.
The Company’s historical growth has included, and the Company’s future growth is likely to continue to include,
acquisitions. The Company intends to continue to seek acquisition opportunities both to expand into new markets and to
enhance its position in existing markets throughout the world. The Company may not be able to successfully identify suitable
candidates, negotiate appropriate acquisition terms, obtain financing needed to consummate those acquisitions, complete
proposed acquisitions or successfully integrate acquired businesses into its existing operations. In addition, any acquisition,
once successfully integrated, may not perform as planned, be accretive to earnings, or otherwise prove beneficial to the
Company.
Acquisitions involve numerous risks, including the assumption of undisclosed, uninsured or unindemnified liabilities;
difficulties in the assimilation of the operations, technologies, services and products of the acquired companies and the
diversion of management’s attention from other business concerns. In addition, prior acquisitions have resulted in, and future
acquisitions could result in, the incurrence of substantial additional indebtedness and other expenses.
The Markets Served by the Company are Highly Competitive and this Competition Could Reduce Sales and Profit Margins.
Most of the Company’s products are sold in competitive markets. Maintaining and improving a competitive position will
require continued investment in manufacturing, engineering, quality standards, marketing, technology, customer service and
support and distribution networks. The Company may not be successful in maintaining its competitive position. The Company’s
competitors may develop products that are superior, may develop methods of more efficiently and effectively providing
products and services or may adapt quicker to new technologies or evolving customer requirements. Additionally, the
Company’s competitors may adopt new technologies and technological advancements using artificial intelligence and machine
learning to pursue new products and approaches more quickly, successfully and effectively than the Company. The Company
may not be able to compete successfully with existing competitors or with new competitors. Pricing pressures may require the
Company to adjust the prices of products to stay competitive. Failure to continue competing successfully could reduce sales,
profit margins and overall financial performance.
The Company is Dependent on the Availability of Raw Materials, Parts and Components Used in Its Products and Changes
in Supply of, or Price for, Raw Materials, Parts and Components May Materially Adversely Affect the Company.
While the Company manufactures certain parts and components used in its products, the Company also requires substantial
amounts of raw materials and purchases certain parts and components from suppliers. The availability of and prices for raw
materials, parts and components may be subject to curtailment or change due to, among other things, suppliers’ allocations to
other purchasers, interruptions in production by suppliers, including due to geopolitical or civil unrest, unfavorable economic or
industry conditions, labor disruptions, supply chain disruptions, catastrophic weather events, natural disasters, public health
concerns, changes in exchange rates and prevailing price levels. Any change in the supply of, or price for, raw materials or parts
and components could materially affect the Company and its financial condition, results of operations and cash flow.
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The Company’s Business Operations May Be Materially Adversely Affected by Information Systems Interruptions or
Intrusion, Including those Arising From Cybersecurity Attacks or Incidents or Violations of Laws Regulating Privacy and Data
Security.
The Company depends on various internal and third party information technologies to administer, store, process and
transmit electronic information (including sensitive or controlled data such as confidential business information and personal
data relating to employees, customers and other business partners) and to support a variety of critical business activities. Our
business has an increasing reliance on IT systems and a growing digital footprint as a result of changing technologies,
increasing connected devices and digital offerings, and an increase in remote and hybrid workforce populations. Additionally,
some of our products contain computer hardware and software and offer the ability to connect to computer networks. Our
customers, including government customers, are also requiring cybersecurity protections and mandating cybersecurity standards
for our businesses with more frequency. If the Company’s systems, technologies, products or services (including those we
acquire through business acquisitions), or the systems, technologies, products or services of the Company’s customers or third-
party hosting services (including third-party data centers and cloud platforms upon which we rely), are damaged or cease to
function properly, or if the Company or third-party hosting service systems are subject to deliberate cyber-security attacks, such
as those involving unauthorized access or malicious software, or unintentional cybersecurity incidents, such as those involving
systems misconfigurations, misuse or human error and/or other intrusions, the Company, its operating results and financial
condition could be materially adversely impacted. These impacts could include production downtimes, operational delays or
other detrimental impacts on operations or the ability to provide products and services to customers; the compromise,
destruction, corruption or theft of confidential or otherwise protected information, data or intellectual property; security
breaches; other manipulation or improper use of the Company’s systems or networks; financial losses from fraudulent
transactions; financial losses from remedial actions; loss of business or potential liability; adverse media coverage; legal claims
or legal proceedings including regulatory investigations, actions, penalties or fines, including those arising from the violation of
any applicable data privacy laws; and/or damage to the Company’s reputation. While we have experienced, and expect to
continue to experience, these types of threats and incidents, based on our analysis at this time, we have not experienced a
cybersecurity threat or incident that we believe has or is reasonably likely to materially affect the Company.
As a global organization, we are also subject to data privacy and security laws, regulations and customer-imposed controls
in numerous jurisdictions as a result of having access to and processing confidential, personal and/or sensitive data in the course
of our business. Governmental investigations and enforcement actions can be costly and interrupt the regular operations of our
business, and data breaches or violations of data privacy laws can result in civil and criminal, monetary and non-monetary
penalties and damages to our reputation, any of which may adversely affect our business and financial statements. As
cybersecurity threats continue to evolve and as cybersecurity and data protection laws and regulations continue to develop
globally, we expect to expend additional resources to continue to develop our compliance programs, strengthen our information
security, data protection, disaster recovery and business continuity measures, and investigate and remediate vulnerabilities.
There has been a rise in the number of cyberattacks targeting confidential business information generally and in the
manufacturing industry specifically by both state-sponsored and criminal organizations. These may include such things as
denial of service attacks, introduction of ransomware or other malicious software programs, and other disruptive problems. In
addition, there has been a rise in the number of cyberattacks that depend on human error or manipulation, including phishing
attacks or schemes that use social engineering to gain access to systems or perpetuate wire transfer or other frauds. Moreover,
the rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks. These
trends increase the likelihood of such events occurring.
The Company regularly identifies, defends against and responds to cyber threats and security incidents. While the
Company attempts to mitigate cybersecurity risks by employing a number of measures, including employee training, technical
security controls and maintenance of certain backup and protective systems, the Company’s systems, networks, products and
services remain potentially vulnerable to known or unknown threats or other intrusions, and there are risks that our
cybersecurity defenses will be insufficient to fully mitigate cyber risks and losses related to cybersecurity events, any of which
may result in a material adverse effect on the Company and its financial condition or results of operations. Moreover, until we
have migrated businesses we acquire onto our IT systems or ensured compliance with our information technology and
cybersecurity standards, we have in the past and may in the future face additional risks because of the continued use of
predecessor IT systems, procedures and cybersecurity risk mitigation measures. Given the unpredictability, nature and scope of
cybersecurity attacks and incidents, it is possible that potential vulnerabilities could go undetected for an extended period, and it
could take considerable time for the Company to obtain full and reliable information as to the extent, amount and type of
information and/or systems compromised. Any imposition of liability, particularly liability that is not covered by insurance or is
in excess of our insurance coverage, could materially adversely harm our operating results and financial condition.
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Uncertainty Related to Environmental Regulation, Industry Standards, or Other Risks Associated with a Potential Global
Transition to a Lower-Carbon Economy, as well as Physical Risks of Climate Change, Could Adversely Impact the Company's
Results of Operations and Financial Position.
Increased public awareness and concern regarding environmental risks, including global climate change and the potential global
transition to a lower-carbon economy, may result in more international, regional, federal and/or state requirements or industry
standards to reduce or mitigate global warming and other environmental risks. New climate change laws and regulations could
require the Company to change its manufacturing processes or obtain substitute materials that may cost more or be less
available for its manufacturing operations. Various jurisdictions in which the Company does business have implemented, or in
the future could implement or amend, restrictions on emissions of carbon dioxide or other greenhouse gases, taxation of or caps
on the use of carbon-based energy, limitations or restrictions on water use, limitations or restrictions on the production of single
use plastics, regulations on energy management and waste management and other rules and regulations to address climate
change and other environmental risks, which may increase the Company’s expenses and adversely affect its operating results.
In addition to changes in regulations or industry standards, a failure by the Company to innovate and adapt products to new
markets, changing customer preferences for higher-efficiency products, or increasing scrutiny around fossil fuels usage could
limit sales growth and negatively impact the Company and its financial condition, results of operations and cash flow.
The physical risks of climate change are highly uncertain and differ in the geographic regions in which the Company
operates. These physical risks, including wildfires, rising sea levels, floods and other extreme weather events, may impact the
availability and cost of materials, sources and supply of energy, product demand and manufacturing and could increase
insurance and other operating costs. Any future increased worldwide regulatory activity relating to climate change could expand
the nature, scope and complexity of matters that the Company is required to control, assess and report. If environmental laws or
regulations or industry standards are either changed or adopted and impose significant operational restrictions and compliance
requirements upon the Company, its suppliers, its customers or its products, or the Company's operations are disrupted due to
physical impacts of climate change on the Company, its customers or its suppliers, the Company's business, results of
operations and financial condition could be adversely impacted. Further, any failure to adequately address stakeholder
expectations or to achieve previously announced initiatives or goals with respect to sustainability or environmental, social and
governance matters may adversely impact our reputation, business, financial condition and results of operations.
Business Disruptions Due to Catastrophic Weather Events, Natural Disasters and Public Health Threats Could Adversely
Affect the Company.
The Company faces various risks related to the occurrence of catastrophic weather events or significant natural disasters,
including earthquakes, wildfires, droughts, fires, power-outages or other catastrophic events, in areas in which we have
manufacturing facilities or from which we obtain products. Severe weather conditions, including any that may be caused or
exacerbated by global climate change, may cause physical damage to our properties, closure of one or more of our
manufacturing or distribution facilities, lack of an adequate work force in a market, temporary disruption in the supply of
inventory, disruption in the transport of products and utilities and delays in the delivery of products to our customers.
Additionally, public health threats may negatively impact the global economy by causing changes in consumer behavior,
market downturns, restrictions on business and individual activities and increased volatility. Any widespread public health
threats could have a significant impact on the Company’s supply chain, such as the Company experienced during the global
outbreak of the COVID-19 pandemic.
To the extent that any of the foregoing adversely affect the Company and its financial results, they may also have the effect
of heightening many of the other risks described in Item 1A, “Risk Factors” of this annual report, such as those relating to
international operations, the Company’s ability to develop new products, the Company’s ability to execute on its growth
strategy of acquisitions, the Company’s dependency on raw materials, parts and components, the effects on movements in
foreign currency exchange rates on the Company, the effects on the Company that result from declines in commodity prices and
the Company’s reliance on labor availability to operate and grow the business.
Risks Related to Economic and Political Conditions
A Slowdown in the U.S. or International Economy Could Materially Adversely Affect the Sales and Profitability of the
Company’s Businesses.
In 2023, 50% of the Company’s sales were derived from domestic operations and 50% were derived from international
operations. The Company’s largest end markets include industrial, fire and safety, energy, life sciences, water and wastewater
treatment, semiconductor, automotive, analytical instruments, food and pharmaceuticals, paint, agriculture and chemical
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processing. A slowdown in the U.S. or global economy and, in particular, any of these specific end markets could materially
reduce the Company’s sales and profitability.
Changes to Geopolitical and Economic Conditions in the U.S. and Foreign Countries in Which the Company Operates Could
Adversely Affect the Company.
The Company expects international operations and export sales to continue to be significant for the foreseeable future. The
Company’s sales from international operations and sales from export are both subject in varying degrees to risks inherent in
doing business outside the U.S. These risks include the following:
•
•
•
•
•
•
•
•
possibility of unfavorable circumstances arising from host country laws or regulations and the risks related to required
compliance with local laws;
risks of economic instability, including due to inflation;
currency exchange rate fluctuations and restrictions on currency repatriation;
potential negative consequences from changes to taxation policies;
disruption of operations from labor and political disturbances;
withdrawal from or renegotiation of international trade agreements and other restrictions on the trade between the
United States and other countries;
the imposition of and changes in the United States’ and other governments’ trade regulations, trade wars, tariffs and
other trade barriers, including as a result of geopolitical developments (such as escalating tensions in the Middle East)
and relations between the United States and China and the United States and Russia; and
geopolitical events, including natural disasters, catastrophic weather events, climate change, public health conditions,
including epidemics, pandemics and other outbreaks (such as the global outbreak of the COVID-19 pandemic),
political instability or other geopolitical events, including civil or political unrest, terrorism, insurrection or war.
Any of these events could have a materially adverse impact on the Company and its operations.
Significant Movements in Foreign Currency Exchange Rates May Harm the Company’s Financial Results.
The Company is exposed to fluctuations in foreign currency exchange rates, particularly with respect to the Euro, Swiss
Franc, Canadian Dollar, British Pound, Indian Rupee, Chinese Renminbi, Swedish Krona and Brazilian Real. Any significant
change in the value of the currencies of the countries in which the Company does business against the U.S. Dollar could affect
the Company’s ability to sell products competitively and control its cost structure, which could have a material adverse effect
on results of operations. For additional detail related to this risk, see Part II, Item 7A, “Quantitative and Qualitative Disclosures
About Market Risk.”
Fluctuations in Interest Rates Could Adversely Affect the Company’s Results of Operations and Financial Position.
The Company’s profitability may be adversely affected during any periods of unexpected or rapid increases in interest
rates. The Company maintains a Credit Agreement with a revolving credit facility (the “Revolving Facility”) in an aggregate
principal amount of $800 million and a term credit facility (the “Term Facility”) in an aggregate principal amount of $200
million (together, the “Credit Facility”), which bears interest at either an alternate base rate or adjusted Term SOFR (or
appropriate alternative currency reference rates) plus, in each case, an applicable margin based on the lower of the Company’s
senior, unsecured, long-term debt rating or the Company’s applicable leverage ratio. A significant increase in Term SOFR or
the other rates the Company has agreed to use as an alternative to Term SOFR (should Term SOFR become unavailable) under
the Credit Facility, as amended, would significantly increase the Company’s cost of borrowings. Further, any changes in
regulatory standards or industry practices, such as the discontinuation of the use of Term SOFR and/or the transition to
alternative benchmark rates may result in the usage of higher interest rates under the Credit Facility, and the Company’s current
or future indebtedness may be adversely affected. The Company is also exposed to risks if the U.S. Federal Reserve raises its
benchmark interest rate, which may reduce the availability of and increase the cost of obtaining new debt and refinancing
existing indebtedness. For additional detail related to this risk, see Part II, Item 7A, "Quantitative and Qualitative Disclosures
About Market Risk."
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A Significant or Sustained Decline in Commodity Prices, Including Oil, Could Negatively Impact the Levels of Expenditures
by Certain of the Company’s Customers.
Demand for the Company’s products depends, in part, on the level of new and planned expenditures by certain of its
customers. The level of expenditures by the Company’s customers is dependent on, among other factors, general economic
conditions, availability of credit, economic conditions within their respective industries and expectations of future market
behavior. Volatility in commodity prices, including oil, can negatively affect the level of these activities and can result in
postponement of capital spending decisions or the delay or cancellation of existing orders. The ability of the Company’s
customers to finance capital investment and maintenance may also be affected by the conditions in their industries. Reduced
demand for the Company’s products could result in the delay or cancellation of existing orders or lead to excess manufacturing
capacity, which unfavorably impacts the absorption of fixed manufacturing costs. This reduced demand could have a material
adverse effect on the Company and its financial condition and results of operations.
Risks Related to Legal, Accounting and Regulatory Matters
An Unfavorable Outcome of Any Pending Contingencies or Litigation Could Adversely Affect the Company.
The Company is currently involved in pending and threatened legal, regulatory and other proceedings arising in the
ordinary course of business. These proceedings may pertain to matters such as product liability or contract disputes, and may
also involve governmental inquiries, inspections, audits or investigations relating to issues such as tax matters, intellectual
property, environmental, health and safety issues, governmental regulations, employment and other matters. Where it is
reasonably possible to do so, the Company accrues estimates of the probable costs for the resolution of these matters. These
estimates are developed in consultation with outside counsel and are based upon an analysis of potential results and the
availability of insurance coverage, assuming a combination of litigation and settlement strategies. It is possible, however, that
future operating results for any particular quarter or annual period could be materially affected by changes in assumptions, the
continued availability of insurance coverage or the effectiveness of the Company’s strategies related to these proceedings. For
additional detail related to this risk, see Item 3, “Legal Proceedings” and Note 10 in Part II, Item 8, “Financial Statements and
Supplementary Data.”
Failure to Adequately Protect the Company’s Intellectual Property and the Risk of Disputes Involving Intellectual Property
Infringement Could Adversely Impact the Company’s Competitive Position, Results of Operations, and Financial Condition.
The Company owns patents, trademarks, licenses and other forms of intellectual property related to its products and
continuously invests in research and development that may result in technological innovations and general intellectual property
rights. The Company employs various measures to develop, maintain and protect its intellectual property rights. If these
measures are not effective, or if the Company’s intellectual property is otherwise infringed, challenged, invalidated or
circumvented, the Company may face adverse impacts to its results of operations and/or financial condition. Further, if
intellectual property is infringed, challenged, invalidated or circumvented, this could reduce barriers to entry into the
Company’s existing lines of business and may result in a loss of market share and adversely impact the Company’s competitive
position. Additionally, the Company has registered intellectual property in multiple countries, and the Company’s ability to
protect and enforce its intellectual property rights may be limited in foreign countries due to differences in intellectual property
protections or proprietary rights laws. If the Company’s intellectual property is infringed, challenged, invalidated or
circumvented due to these lesser protections, the Company may face adverse impacts to its results of operations, financial
condition and/or competitive position.
Litigation may be necessary to enforce the Company’s intellectual property rights or to defend against infringement claims
by third parties. Any litigation or claims brought by the Company could result in costs and diversion of resources, which could
adversely affect the Company’s results of operations and/or financial condition. Any intellectual property litigation or claims
brought against the Company may lead to litigation expenses, diversion of resources, losses or licensing expenses or the
cessation of selling certain products, any of which could adversely affect the Company’s results of operations and/or financial
condition.
The Company’s Intangible Assets, Including Goodwill, are a Significant Portion of Total Assets and a Write-off of Intangible
Assets or Goodwill Would Adversely Impact the Company’s Operating Results and Significantly Reduce the Company’s Net
Worth.
The Company’s total assets includes substantial intangible assets, primarily goodwill and identifiable intangible assets,
which primarily result from acquisitions. At December 31, 2023, goodwill and intangible assets totaled $2,838.3 million and
19
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$1,011.8 million, respectively. Annually, or when certain events occur that require a more current valuation, the Company
assesses whether there has been an impairment in the value of goodwill and identifiable intangible assets. If future operating
performance at one or more of the Company’s reporting units were to fall significantly below forecasted levels, the Company
could be required to reflect, under current applicable accounting rules, a non-cash charge to operating income for an
impairment. Any determination requiring the write-off of a significant portion of goodwill or identifiable intangible assets
would adversely impact the Company’s results of operations and net worth. See Note 6 in Part II, Item 8, “Financial Statements
and Supplementary Data” for further discussion on goodwill and intangible assets.
The Company May Face Adverse Effects Resulting from Improper Conduct by Our Employees, Agents or Business Partners.
While we strive to maintain high standards, the Company cannot guarantee that our internal controls and compliance
systems will always protect us from reckless or criminal acts committed by employees, agents or business partners of ours (or
businesses that we acquire or partner with) that would violate laws in the U.S. or foreign countries in which the Company
operates, including laws governing payment to government officials, bribery, fraud, conflicts of interest, competition,
employment practices and workplace behavior, export and import compliance, economic and trade sanctions, money laundering
and data privacy.
In particular, recent years have seen a substantial increase in anti-bribery law enforcement activity with more frequent and
aggressive investigations and enforcement proceedings by both the Department of Justice and the SEC, increased enforcement
activity by non-U.S. regulators and increases in criminal and civil proceedings brought against companies and individuals. The
Company’s policies mandate compliance with all anti-bribery laws, including the U.S. Foreign Corrupt Practices Act, the U.K.
Bribery Act and similar anti-bribery laws in other jurisdictions which generally prohibit companies and their intermediaries
from making improper payments for the purpose of obtaining or retaining business. However, the Company operates in certain
countries that are recognized as having governmental and commercial corruption. Violations of any of these laws may result in
criminal or civil sanctions or penalties, both monetary and non-monetary, increased costs of compliance and/or damage to our
reputation, any of which could have a material adverse effect on the Company and its financial condition and results of
operations.
General Risk Factors
A Failure to Retain Executive Management and Key Personnel or Recruit Adequate Successors May Adversely Affect the
Company’s Operations and Implementation of Strategy.
The Company’s future success depends to a significant degree on the skills, experience and efforts of its executive
management and other key personnel and their ability to provide the Company with uninterrupted leadership and direction. The
loss of the services of any of the executive officers or other key personnel or a failure to provide adequate succession plans for
these individuals could have an adverse impact on the Company’s operations and implementation of its strategic plan. The
availability of highly qualified talent is limited and the competition for talent is robust.
Challenges with Respect to Labor Availability Could Negatively Impact the Company’s Ability to Operate or Grow the
Business.
The Company’s success depends in part on the ability of its businesses to proactively attract, motivate and retain a qualified
and highly skilled workforce in an intensely competitive labor market. A failure to attract, motivate and retain highly skilled
personnel could adversely affect the Company’s operating results or its ability to operate or grow the business. Additionally,
any labor stoppages or labor disruptions, including due to geopolitical unrest, unfavorable economic or industry conditions,
catastrophic weather events, natural disasters or public health threats could adversely affect the Company’s operating results or
its ability to operate or grow the business.
Item 1B.
Unresolved Staff Comments.
None.
20
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Item 1C.
Cybersecurity.
Risk Management and Strategy.
The Company’s cybersecurity program is designed to be aligned to the Cybersecurity Framework published by the
National Institute of Standards and Technology (“NIST CSF”). While we use the NIST CSF as a guide, this does not imply that
we meet any particular standards, specifications or requirements. We conduct regular internal and external assessments of our
information security and cybersecurity programs, including periodic external audits for company-wide compliance with our
program as well as specific business unit alignment, as required, with U.S. federal acquisition regulations and UK Cyber
Essentials certifications. An external penetration test is performed annually against the Company’s network, in addition to our
regular internal vulnerability scans.
The Company’s internal Incident Response Policy sets forth specific protocols for cyber or data incident identification,
detection, response and recovery. This process includes the assembly of a response team consisting of internal and external
technical and legal experts immediately upon the event of a cyberattack or incident. The Company reviews and updates this
process regularly, including by engaging in tabletop exercises to simulate cybersecurity and data breach incidents. The
Company maintains global cybersecurity insurance coverage that is reviewed annually for adequacy against operations and
information systems.
The Company has implemented a number of measures to mitigate cybersecurity risk in its operations, including annual
cybersecurity awareness training for employees, regular internal phishing exercises, technical security controls, maintenance of
certain backup and protective systems, physical and system securities measures, and data security protocols. Once fully
integrated, all of our businesses have access to a “cyber risk dashboard” that monitors various risk indicators. The cyber risk
dashboard is monitored by our business units. The Company’s internal auditors periodically review and audit various processes
and controls throughout the organization related to cybersecurity readiness.
The Company also has certain processes in place to manage cyber risks associated with third-party service providers which
include various technical as well as contractual measures.
For more information on cybersecurity risks and how they affect our business, operating results and financial condition,
please refer to Item 1A., “Risk Factors – The Company’s Business Operations May Be Materially Adversely Affected by
Information Systems Interruptions or Intrusion, Including those Arising From Cybersecurity Attacks or Incidents or Violations
of Laws Regulating Privacy and Data Security.” Based on our analysis at this time, we have not identified any risks from a
cybersecurity threat or incident that we believe has or is reasonably likely to materially affect the Company.
Governance, Oversight and Leadership.
The Board and the Audit Committee oversee management’s efforts to address cybersecurity and information security risks.
Senior management provides the Board updates on the Company’s cybersecurity program at least once a year, including as part
of the Company’s enterprise risk management assessment, and the Audit Committee reviews the cybersecurity program at least
twice a year and on an as-needed basis. Such reviews, among other things, include the results of internal and/or external
assessments, a review of cybersecurity governance at the management level, and a review of the Company’s cybersecurity
program and progress toward various initiatives.
The Company also maintains an Executive Cybersecurity Steering Committee (the “Cybersecurity Committee”), made up
of key members of senior leadership, to oversee and monitor progress of various cybersecurity initiatives throughout the
organization. The Cybersecurity Committee meets quarterly. In addition, the Company asks each business unit to designate an
employee as the local Information Security Officer responsible for monitoring the business unit’s cyber risk dashboard and
coordinating with local leadership to respond to identified risks accordingly. Each local Information Security Officer completes
an annual certification process and receives regular updates with respect to the Company’s cybersecurity program.
The Chief Information Officer (“CIO”), who reports to the Chief Financial Officer, along with members of the corporate
and business unit information technology teams, are generally responsible for developing and managing the Company’s
cybersecurity programs. Our CIO has over 20 years of experience in various information technology and information security
roles, and our information security team is comprised of employees with broad knowledge of cybersecurity issues gained
through experience and through training and certifications. These individuals, along with other internal and external personnel
as needed, monitor the prevention, detection, mitigation and remediation of cybersecurity incidents, and applicable personnel
are informed of known cybersecurity incidents to form the appropriate incident response team and respond accordingly.
21
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Item 2.
Properties.
The Company conducts business at plants and offices that can be owned or leased and located in the U.S. or outside the
U.S., with square footage primarily in Germany (12%), India (8%), the Netherlands (6%), the U.K. (6%), Italy (3%), Canada
(3%), China (2%) and Switzerland (1%). Management considers its facilities suitable and adequate for the Company’s
operations and believes it has ample capacity in its plants and equipment to meet demand increases for future growth in the
intermediate term, especially given its operational improvement initiatives that usually increase capacity.
A summary of properties used by the Company’s operations as of December 31, 2023 are shown in the following table:
Square footage (in millions)
Location
Owned/Leased
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Other(1)
Total
Total
Domestic
International
Owned
Leased
2.0
2.1
1.1
0.6
5.8
1.4
1.1
0.6
0.1
3.2
0.6
1.0
0.5
0.5
2.6
1.4
0.5
1.0
0.4
3.3
0.6
1.6
0.1
0.2
2.5
(1) Other includes shared service locations as well as the Company’s executive office, which occupies 40,261 square feet of
leased space in Northbrook, Illinois and 16,268 square feet of leased space in Chicago, Illinois.
Item 3.
Legal Proceedings.
The Company and its subsidiaries are party to legal proceedings arising in the ordinary course of business as described in
Note 10 in Part II, Item 8, “Financial Statements and Supplementary Data,” and such disclosure is incorporated by reference
into this Item 3, “Legal Proceedings.”
The Company's threshold for disclosing material environmental legal proceedings involving a government authority where
potential monetary sanctions are involved is $1.0 million.
In addition, the Company and six of its subsidiaries are presently named as defendants in a number of lawsuits claiming
various asbestos-related personal injuries, allegedly as a result of exposure to products manufactured with components that
contained asbestos. These components were acquired from third party suppliers and were not manufactured by the Company or
any of the defendant subsidiaries. To date, the majority of the Company’s settlements and legal costs, except for costs of
coordination, administration, insurance investigation and a portion of defense costs, have been covered in full by insurance,
subject to applicable deductibles. However, the Company cannot predict whether and to what extent insurance will be available
to continue to cover these settlements and legal costs, or how insurers may respond to claims that are tendered to them.
Asbestos-related claims have been filed in jurisdictions throughout the United States and the United Kingdom. Most of the
claims resolved to date have been dismissed without payment. The balance of the claims have been settled for various
immaterial amounts. Only one case has been tried, resulting in a verdict for the Company’s business unit. No provision has
been made in the financial statements of the Company, other than for insurance deductibles in the ordinary course, and the
Company does not currently believe the asbestos-related claims will have a material adverse effect on the Company’s business,
financial position, results of operations or cash flows.
Item 4.
Mine Safety Disclosures.
Not applicable.
22
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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities.
The Company’s common stock trades on the New York Stock Exchange under the symbol “IEX”. As of February 16,
2024, there were approximately 6,929 stockholders of record of the Company’s common stock and there were
75,644,654 shares outstanding.
The Company’s payment of dividends in the future will be determined by the Board of Directors and will depend on
business conditions, earnings and other factors.
For information pertaining to securities authorized for issuance under equity compensation plans and the related weighted
average exercise price, see Part III, Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.”
On March 17, 2020, the Company’s Board of Directors approved an increase of $500.0 million in the authorized level of
repurchases of common stock. This approval is in addition to the prior repurchase authorization of the Board of Directors of
$300.0 million on December 1, 2015. These authorizations have no expiration date.
The Company’s purchases of common stock during the quarter ended December 31, 2023 are as follows. As of December
31, 2023, the amount of share repurchase authorization remaining was $539.7 million.
Period
October 1, 2023 to October 31, 2023
November 1, 2023 to November 30, 2023
December 1, 2023 to December 31, 2023
Total
Total Number of
Shares Purchased
Average Price
Paid per Share
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs
Maximum Dollar
Value that May Yet
be Purchased Under
the Plans
or Programs
45,000 $
74,200
—
119,200 $
192.72
194.10
—
193.58
45,000 $
554,091,268
74,200
—
539,689,117
539,689,117
119,200 $
539,689,117
23
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Performance Graph
The following table compares total stockholder returns over the last five years to the Standard & Poor’s (the “S&P”) 500
Index, the S&P Midcap Industrials Sector Index and the Russell 2000 Index assuming the value of the investment in the
Company’s common stock and each index was $100 on December 31, 2018. Total return values for the Company’s common
stock, the S&P 500 Index, S&P Midcap Industrials Sector Index and the Russell 2000 Index were calculated on cumulative
total return values assuming reinvestment of dividends. The stockholder return shown on the graph below is not necessarily
indicative of future performance.
IDEX Corporation
S&P 500 Index
S&P Midcap 400 Industrials Sector Index
Russell 2000 Index
12/18
100.00 $
100.00 $
100.00 $
100.00 $
12/19
137.95 $
131.49 $
133.55 $
125.52 $
12/20
161.67 $
155.68 $
155.57 $
150.58 $
12/21
193.69 $
200.37 $
199.82 $
172.90 $
12/22
189.38 $
164.08 $
176.84 $
137.56 $
12/23
182.19
207.21
232.43
160.85
$
$
$
$
The information contained in this Performance Graph section shall not be deemed to be “soliciting material” or “filed” with
the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or the
Securities Exchange Act of 1934.
Item 6. [Reserved]
24
DOLLARSIDEX CorporationS&P 500 IndexS&P Midcap Industrials Sector IndexRussell 2000 Index12/1812/1912/2012/2112/2212/2375100125150175200225250
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis should be read in conjunction with the Company’s Consolidated Financial
Statements and related notes in this annual report. This discussion may contain forward-looking statements based upon current
expectations that involve risks and uncertainties. The Company’s actual results and the timing of selected events could differ
materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth
under Item 1A, “Risk Factors” and under the heading “Cautionary Statement Under the Private Securities Litigation Reform
Act” discussed elsewhere in this annual report.
This discussion includes certain non-GAAP financial measures that have been defined and reconciled to their most directly
comparable financial measure prepared in accordance with accounting principles generally accepted in the United States of
America (“U.S. GAAP”) under the headings “Non-GAAP Disclosures” and “Free Cash Flow.” This discussion also includes
Operating working capital which has been defined under the heading “Liquidity and Capital Resources.” The non-GAAP
financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures
prepared in accordance with U.S. GAAP. The financial results prepared in accordance with U.S. GAAP and the reconciliations
from these results should be carefully evaluated.
2023 Overview
IDEX is an applied solutions provider specializing in the manufacture of fluid and metering technologies, health and
science technologies and fire, safety and other diversified products built to customers’ specifications. IDEX’s products are sold
in niche markets across a wide range of industries throughout the world. Accordingly, IDEX’s businesses are affected by levels
of industrial activity and economic conditions in the U.S. and in other countries where it does business, as well as by the
relationship of the U.S. dollar to other currencies. Levels of capacity utilization and capital spending in certain industries and
overall industrial activity are important factors that influence the demand for IDEX’s products.
During 2023, the Company delivered strong operating performance amid sharp volume declines as customers recalibrated
inventory levels and order patterns following the easing of global supply chain constraints and reduced lead times. While
customer inventory destocking resulted in lower sales volumes, most prominently experienced by the Company’s Health &
Science Technologies segment, the Company realized strong price/cost and achieved favorable operational productivity across
its segments. Net income attributable to IDEX and Adjusted EBITDA were $596.1 million and $899.6 million, respectively, in
2023, both up 2% from the prior year. Cash flows from operating activities were $716.7 million during the year ended
December 31, 2023, reflecting inventory reduction efforts and resulting in record free cash flow of $626.8 million during the
year. Finally, the Company deployed capital with the acquisition of two businesses – Iridian Spectral Technologies (“Iridian”)
and STC Material Solutions (“STC”).
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Table of Contents
Select key financial results for the year ended December 31, 2023 when compared to 2022 were as follows:
(Dollars in millions, except per share amounts)
Net sales
Adjusted net sales*
Organic net sales growth*
Gross profit
Adjusted gross profit*
Net income attributable to IDEX
Adjusted net income attributable to IDEX*
Adjusted EBITDA*
Diluted EPS attributable to IDEX
Adjusted diluted EPS attributable to IDEX*
Cash flows from operating activities
Free cash flow*
Gross margin
Adjusted gross margin*
Net income margin
Adjusted EBITDA margin*
Year Ended December 31,
2023
2022
$ 3,273.9
$ 3,181.9
3,273.9
3,164.0
1,446.9
1,448.5
1,426.9
1,417.5
596.1
623.6
899.6
7.85
8.22
716.7
626.8
44.2 %
44.2 %
18.2 %
27.5 %
586.9
618.1
884.2
7.71
8.12
557.4
489.4
44.8 %
44.8 %
18.4 %
27.9 %
% / bps
Change
3%
3%
(1%)
1%
2%
2%
1%
2%
2%
1%
29%
28%
(60) bps
(60) bps
(20) bps
(40) bps
*These are non-GAAP measures. See the definitions of these non-GAAP measures and reconciliations to their most directly comparable GAAP financial
measures under the headings “Non-GAAP Disclosures” and “Free Cash Flow.”
2024 Outlook
Moving into 2024, the majority of our businesses are currently experiencing stable demand and seeing early signs of
improvement, particularly in the Fluid & Metering Technologies segment. However, while the life sciences and analytical
instrumentation markets served by approximately one-third of the Health & Science Technologies segment appear stable, these
markets are not yet showing signs of near-term recovery. We continue to believe in the long-term growth potential of these end
markets and believe we are well positioned to support growth as demand increases. Additionally, we expect the Dispensing
reporting unit within the Company’s Fire & Safety/Diversified Products segment to contract in 2024, due to the completion of
the fleet refreshment cycle of our North American customers in 2023. These declines are expected to be partly offset by growth
in the Dispensing reporting unit in emerging markets and growth in the Fire & Safety and BAND-IT reporting units.
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Table of Contents
Results of Operations
The following is a discussion and analysis of the Company’s results of operations for the year ended December 31, 2023
compared with the year ended December 31, 2022. For the discussion related to the consolidated results of operations for the
year ended December 31, 2022 compared with the year ended December 31, 2021, refer to the Company’s Annual Report on
Form 10-K for the year ended December 31, 2022, which was filed with the Securities and Exchange Commission (“SEC”) on
February 23, 2023.
Performance in 2023 Compared with 2022
(Dollars in millions, except per share amounts)
Net sales
Cost of sales
Gross profit
Gross margin
Selling, general and administrative expenses
Restructuring expenses and asset impairments
Operating income
Gain on sale of businesses - net
Other expense (income) - net
Interest expense
Income before income taxes
Provision for income taxes
Effective tax rate
Net income attributable to IDEX
Diluted earnings per common share attributable to IDEX
Net Sales
Year Ended December 31,
Change
2023
2022
$
% / bps
$
3,273.9
$
3,181.9
$
1,827.0
1,446.9
44.2%
703.5
10.9
732.5
(84.7)
5.2
51.7
760.3
164.7
21.7%
596.1
7.85
$
$
1,755.0
1,426.9
44.8%
652.7
22.8
751.4
(34.8)
(3.9)
40.7
749.4
162.7
21.7%
586.9
7.71
$
$
$
$
92.0
72.0
20.0
n/a
50.8
(11.9)
(18.9)
(49.9)
9.1
11.0
10.9
2.0
n/a
9.2
0.14
3%
4%
1%
(60) bps
8%
(52%)
(3%)
143%
(233%)
27%
1%
1%
0 bps
2%
2%
Net sales increased 3% as compared to the prior year, driven by a 5% increase in acquisitions, net of divestitures, partially
offset by a 1% decrease in organic sales and a 1% decrease due to the acceleration of previously deferred revenue related to the
exit of a COVID-19 testing application in 2022 that did not reoccur in 2023 (see Note 14 in the Notes to Consolidated Financial
Statements for further detail). The decrease in organic sales was driven by lower volumes as a result of market conditions
during the year, particularly in the Health & Science Technologies businesses, partially offset by price capture across all
segments. Net sales decreased 1% domestically and increased 7% internationally, and sales to customers outside the U.S. were
approximately 50% of total sales in 2023 compared with 48% in 2022.
Gross Profit and Gross Margin
Gross profit and Gross margin were positively impacted by price/cost and strong operational productivity as well as lower
fair value inventory step-up charges, and negatively impacted by lower volume leverage, higher employee-related costs,
unfavorable mix and the acceleration of previously deferred revenue related to the exit of a COVID-19 testing application in
2022 that did not reoccur in 2023. While acquisitions, net of divestitures also positively impacted Gross profit, they resulted in
a dilutive impact to overall Gross margin.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased primarily due to the $49.1 million impact from acquisitions,
including amortization, net of divestitures, as well as increases in employee-related costs, which were largely offset by a
decrease in variable compensation.
27
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Restructuring Expenses and Asset Impairments
Restructuring expenses and asset impairments decreased primarily due to an asset impairment charge of $16.8 million
related to the exit of a COVID-19 testing application in 2022, partially offset by higher severance costs in 2023 incurred in
conjunction with cost mitigation efforts as a result of current market conditions. See Note 14 in the Notes to the Consolidated
Financial Statements for further detail.
Gain on Sale of Businesses - Net
In 2023, the Company completed the sale of Micropump for proceeds of $110.3 million, net of cash remitted, which
resulted in a pre-tax gain of $93.8 million, and the sale of Novotema, SpA (“Novotema”) for proceeds of $8.3 million, net of
cash remitted, which resulted in a loss of $9.1 million. In 2022, the Company completed the sale of Knight LLC (“Knight”) for
proceeds of $49.4 million, net of cash remitted, which resulted in a pre-tax gain of $34.8 million.
Other Expense (Income) - Net
Other expense (income) - net was $5.2 million of expense in 2023 compared to $3.9 million of income in 2022. The
increase in expense was primarily due to a $7.7 million credit loss reserve on an investment with a collaborative partner (see
Note 3 in the Notes to Consolidated Financial Statements for further detail), higher foreign currency transaction losses and $2.7
million of gains on the sale of assets in 2022 that did not reoccur in 2023, partially offset by higher interest earned on cash
balances and gains on the sale of trading securities in 2023.
Interest Expense
Interest expense increased primarily due to the borrowings incurred under the Credit Facility in connection with the
acquisition of Muon B.V. and its subsidiaries (“Muon Group”) in November 2022 as well as higher interest rates on the
Company’s indebtedness.
Income Taxes
The Company’s provision for income taxes is based upon estimated annual tax rates for the year applied to federal, state
and foreign income. The provision for income taxes increased $2.0 million to $164.7 million in 2023 as compared with $162.7
million in 2022. The 2023 effective tax rate of 21.7% remained unchanged compared with the 2022 effective tax rate.
In October 2021, members of the Organization for Economic Co-operation and Development (“OECD”) and G20 Inclusive
Framework on Base Erosion and Profit Shifting agreed to a two-pillar solution to address the tax challenges associated with the
digitalization of the economy. In December 2021, the OECD released the Pillar Two Model Rules (“Pillar Two”), which define
the global minimum tax and call for the taxation of large corporations at a minimum rate of 15%. Although it is uncertain when
and how the rules will be fully enacted into law, based on our initial assessment, nearly all of the jurisdictions in which the
Company operates have an effective tax rate above the 15% threshold. Therefore, the Company does not expect a material
impact from the Pillar Two income tax rules.
Results of Reportable Business Segments
The Company has three reportable segments: Fluid & Metering Technologies (“FMT”), Health & Science Technologies
(“HST”) and Fire & Safety/Diversified Products (“FSDP”). For a detailed description of the operations within each segment,
please refer to Part I, Item 1, “Business” of this Annual Report on Form 10-K.
Management’s primary measurements of segment performance are Net sales, adjusted earnings before interest, income
taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin.
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Fluid & Metering Technologies Segment
(Dollars in millions)
Domestic sales
International sales
Net sales
Adjusted EBITDA
Adjusted EBITDA margin
Year Ended December 31,
Components of Change
2023
2022
Change
Organic(1) Acq/Div(1)(2)
Foreign
Currency
Total
$
695.7
$
660.8
551.4
506.5
$ 1,247.1
$ 1,167.3
416.1
33.4%
374.2
32.1%
5%
9%
7%
11%
5%
10%
2%
2%
—%
(1%)
7%
11%
130 bps
150 bps
(10) bps
(10) bps
130 bps
(1) Based on the timing of the acquisitions, Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and Pipeline
Renewal Technologies (“Nexsight”) results for the first three months of 2023 and KZ CO. (“KZValve”) results for the
first four months of 2023 are reflected in the acquisitions/divestitures column while the remaining year-over-year impact
is included in the organic column.
(2) Divestitures included Knight sold in September 2022.
•
Organic net sales were positively impacted by the following:
◦ Water reporting unit driven by price capture, favorability in the municipal water market and operational
◦
◦
◦
execution;
Energy reporting unit driven by operational execution related to backlog reduction, improved supply chain
conditions, price capture and growth initiatives;
Valves reporting unit driven by strong price capture and demand in Asia; and
Pumps reporting unit driven by strong price capture and operational execution, which more than offset the
impact of lower volumes in the industrial market.
Organic net sales were negatively impacted by the Agriculture reporting unit driven by distribution inventory
recalibration, partially offset by positive original equipment manufacturer demand.
The increase in Adjusted EBITDA margin was primarily due to strong price/cost and operational productivity,
partially offset by higher employee-related costs, unfavorable mix and lower volume leverage.
•
Health & Science Technologies Segment
Year Ended December 31,
Components of Change
2023
2022
Change
Organic(1)
Acq/Div(1)(2)
Other(3)
Foreign
Currency
Total
(Dollars in millions)
Domestic sales
International sales
Net sales
Adjusted net sales
Adjusted EBITDA
Adjusted EBITDA margin
$ 575.5
$ 646.9
(11%)
740.9
692.3
$ 1,316.4
$ 1,339.2
1,316.4
1,321.3
7%
(2%)
(1%)
411.8
(13%)
359.5
27.3%
(10%)
(10%)
(20%)
9%
9%
7%
(1%)
—%
—%
—%
—%
—%
(2%)
(1%)
(13%)
31.2%
(390) bps
(360) bps
(20) bps
—
(10) bps
(390) bps
(1) Based on the timing of the acquisition, Muon Group results for the first 10.5 months of 2023 are reflected in the
acquisitions/divestitures column while the remaining year-over-year impact is included in the organic column.
(2) Acquisitions included Iridian acquired in May 2023 and STC acquired in December 2023. Divestitures included
Micropump sold in August 2023 and Novotema sold in December 2023.
(3) Change in Net sales includes the acceleration of previously deferred revenue of $17.9 million as a result of a customer’s
decision to discontinue further investment in commercializing its COVID-19 testing application in 2022 that did not
reoccur in 2023, the impact of which was excluded from Adjusted net sales. See Note 14 in the Notes to Consolidated
Financial Statements for further detail.
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•
The decrease in organic net sales was attributed to the following:
◦
Scientific Fluidics & Optics reporting unit driven by lower demand from analytical instrumentation and life
science original equipment manufacturers due to customer inventory recalibration and market slowing,
partially offset by price capture and strong cost control;
Sealing Solutions reporting unit driven by lower volumes in the semiconductor market;
◦
◦ Material Processing Technologies reporting unit driven by lower volumes in the pharmaceuticals/
biopharmaceuticals and food markets, partially offset by operational execution related to backlog reduction
and price capture; and
Performance Pneumatics Technologies reporting unit driven by the impact of lower volumes in the industrial
market, partially offset by targeted growth performance and price capture.
◦
•
The decrease in Adjusted EBITDA margin was primarily due to lower volume leverage, higher employee-related costs
and unfavorable mix, partially offset by strong operational productivity and price/cost.
Fire & Safety/Diversified Products Segment
(Dollars in millions)
Domestic sales
International sales
Net sales
Adjusted EBITDA
Adjusted EBITDA margin
Year Ended December 31,
Components of Change
2023
2022
Change
Organic
Acq/Div
Foreign
Currency
Total
$ 371.9
$ 343.3
346.9
335.9
$ 718.8
$ 679.2
208.6
29.0%
183.9
27.1%
8%
3%
6%
13%
6%
13%
—%
—%
—%
—%
6%
13%
190 bps
200 bps
—
(10) bps
190 bps
•
Organic net sales were positively impacted by the following:
◦
◦
Fire & Safety reporting unit driven by price capture, continued demand for rescue tools, improved supply
chain conditions and operational execution; and
BAND-IT reporting unit driven by continued share gain in an otherwise flat automotive market.
Organic net sales had no impact from the Dispensing reporting unit as organic sales were flat. Price capture was fully
offset by lower volumes.
The increase in Adjusted EBITDA margin was primarily due to strong price/cost and favorable operational
productivity, partially offset by higher employee-related costs.
•
Liquidity and Capital Resources
Liquidity
Based on management’s current expectations and currently available information, the Company believes current cash, cash
from operations and cash available under the Revolving Facility will be sufficient to meet its operating cash requirements,
planned capital expenditures, interest and principal payments on all borrowings, pension and postretirement funding
requirements, share repurchases and quarterly dividend payments to holders of the Company’s common stock for the
foreseeable future. Additionally, in the event that suitable businesses are available for acquisition upon acceptable terms, the
Company may obtain all or a portion of the financing for these acquisitions through the incurrence of additional borrowings.
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Select key liquidity metrics at December 31, 2023 are as follows:
(In millions)
Working capital
Current ratio
Cash and cash equivalents
Cash held outside of the United States
Revolving Credit Facility capacity
Borrowings
Letters of credit
Revolving Credit Facility availability
December 31, 2023
946.0
2.9 to 1
534.3
445.9
800.0
81.0
3.4
715.6
$
$
$
$
The Company believes additional borrowings through various financing alternatives remain available, if required.
Operating Working Capital
Operating working capital, calculated as Receivables - net plus Inventories - net minus Trade accounts payable, is used by
management as a measurement of operational results as well as the short-term liquidity of the Company. The following table
details Operating working capital as of December 31, 2023 and 2022:
(In millions)
Receivables - net
Inventories - net
Less: Trade accounts payable
Operating working capital
December 31, 2023
December 31, 2022
Change
Organic Change
$
$
427.8 $
420.8
179.7
442.8 $
470.9
208.9
(15.0) $
(50.1)
29.2
668.9 $
704.8 $
(35.9) $
(15.6)
(62.8)
25.0
(53.4)
Operating working capital decreased $35.9 million to $668.9 million at December 31, 2023. Acquisitions, divestitures and
foreign currency translation increased Operating working capital by $17.5 million during 2023. Apart from these items, reduced
inventory levels were partly offset by lower levels of accounts payable, and strong price capture partially offset the impact of
lower volume on receivables.
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Cash Flow Summary
The following table is derived from the Consolidated Statements of Cash Flows:
(In millions)
Net cash flows provided by (used in):
Operating activities
Investing activities
Financing activities
Operating Activities
Year Ended December 31,
2023
2022
$
716.7 $
(283.8)
(344.7)
557.4
(917.2)
(37.8)
Cash flows provided by operating activities increased $159.3 million to $716.7 million in 2023 primarily due to lower
working capital requirements in 2023 as a result of efforts to recalibrate inventory levels in response to normalizing market
conditions. The prior year period included higher working capital requirements related to higher volumes and increased
inventories to support production amid supply chain challenges.
Investing Activities
Cash flows used in investing activities decreased in 2023 primarily due to the purchase of Iridian and STC in 2023 for
$311.8 million as compared with the purchases of Nexsight, KZValve and Muon Group in 2022 for $945.6 million as well as
proceeds of $118.6 million in 2023 from the sales of Micropump and Novotema as compared with $49.4 million in 2022 from
the sale of Knight. These items were partially offset by higher capital expenditures of $89.9 million in 2023 as compared with
$68.0 million in 2022.
Financing Activities
Cash flows used in financing activities in 2023 primarily consisted of dividends of $190.7 million paid to common
shareholders, payments of $150.0 million on the Term Facility, and the repurchase of shares for $24.2 million. Additionally, in
2023, proceeds of $100.0 million from the issuance of the 5.13% Senior Notes were used to redeem the $100.0 million of the
Company’s 3.20% Senior Notes due June 13, 2025 (the “3.20% Senior Notes”) outstanding. Cash flows used in financing
activities in 2022 primarily consisted of dividends of $177.4 million paid to common shareholders and the repurchase of shares
for $148.1 million. These outflows were partially offset by net proceeds of $75.4 million under the Revolving Facility and
$200.0 million under the Term Facility, which were used to fund the Muon Group acquisition.
Free Cash Flow
The Company believes free cash flow, a non-GAAP measure, is an important measure of performance because it provides a
measurement of cash generated from operations that is available for payment obligations such as operating cash requirements,
planned capital expenditures, interest and principal payments on all borrowings, pension and postretirement funding
requirements and quarterly dividend payments to holders of the Company’s common stock as well as for funding acquisitions
and share repurchases. Free cash flow is calculated as cash flows provided by operating activities less capital expenditures.
The following table reconciles free cash flow to cash flows provided by operating activities:
(Dollars in millions)
Cash flows provided by operating activities
Less: capital expenditures
Free cash flow
Free cash flow as a percent of adjusted net income attributable to IDEX
Year Ended December 31,
2023
2022
716.7 $
89.9
626.8 $
101%
557.4
68.0
489.4
79%
$
$
The increase in free cash flow as compared to 2022 is due to lower working capital requirements in 2023 discussed above
as compared with 2022, partially offset by higher capital expenditures.
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Cash Requirements
Contractual Obligations
The Company’s cash requirements under contractual obligations include:
•
Borrowings and related interest - See Note 7 in the Notes to Consolidated Financial Statements for further detail of the
Company’s debt and timing of expected future principal payments.
Rental payments under operating leases - See Note 9 in the Notes to Consolidated Financial Statements for further
detail of our obligations and the timing of expected future payments.
Purchase obligations - The Company enters into purchase orders with vendors and other parties in the ordinary course
of business. As of December 31, 2023, the Company’s purchase obligations, consisting primarily of inventory
commitments, totaled approximately $265.6 million, of which $238.1 million is expected to be settled during 2024 and
the remainder thereafter.
Pension and post-retirement medical benefit plans - See Note 17 in the Notes to Consolidated Financial Statements for
further detail of our obligations and the timing of expected future payments.
•
•
•
Capital Expenditures
Capital expenditures generally include machinery and equipment that support growth and improved productivity, tooling,
business system technology, replacement of equipment and investments in new facilities. The Company believes it has
sufficient operating cash flows to continue to meet current obligations and invest in planned capital expenditures. Cash flows
from operations were more than adequate to fund capital expenditures of $89.9 million and $68.0 million in 2023 and 2022,
respectively.
Share Repurchases
The Company repurchased 124,600 shares at a cost of $24.2 million in 2023. The Company repurchased 795,423 shares at
a cost of $148.1 million in 2022. As of December 31, 2023, the amount of share repurchase authorization remaining was $539.7
million. For additional information regarding the Company’s share repurchase program, refer to Note 11 in the Notes to
Consolidated Financial Statements.
Dividends
The Company increased its quarterly cash dividend by 7% from $0.60 per common share in 2022 to $0.64 per common
share in 2023. Total dividend payments to common shareholders were $190.7 million in 2023 compared with $177.4 million in
2022.
Covenants
The key financial covenants that the Company is required to maintain in connection with the Revolving Facility, the Term
Facility, the 3.37% Senior Notes and the 5.13% Senior Notes, are a minimum interest coverage ratio of 3.0 to 1 and a maximum
leverage ratio of 3.50 to 1. At December 31, 2023, the Company was in compliance with both of these financial covenants, as
the Company’s interest coverage ratio was 18.43 to 1 for covenant calculation purposes and the leverage ratio was 1.45 to 1.
There are no financial covenants relating to the 2.625% Senior Notes or the 3.00% Senior Notes; however, both are subject to
cross-default provisions. For a discussion of the Company’s Revolving Facility and Senior Notes as well as the associated
covenants, refer to Note 7 in the Notes to Consolidated Financial Statements.
Credit Ratings
The Company’s credit ratings, which were independently developed by the following credit agencies, are detailed below:
• S&P Global Ratings reaffirmed the Company’s corporate credit rating of BBB (stable outlook) in August 2023.
• Moody’s Investors Service affirmed the Company’s corporate credit rating of Baa2 (stable outlook) in December
2021.
• Fitch Ratings reaffirmed the Company’s corporate credit rating of BBB+ (stable outlook) in April 2023.
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Table of Contents
Off-Balance Sheet Arrangements
The Company had $10.5 million of letters of credit as of December 31, 2023, primarily issued as security for insurance and
other performance obligations. Of the $10.5 million of letters of credit, only $3.4 million reduced the Company’s borrowing
capacity under the Revolving Facility as of December 31, 2023.
Except as disclosed above, the Company has no off-balance sheet arrangements that currently have or are reasonably likely
to have a material effect on the Company’s consolidated financial condition, changes in financial condition, results of
operations, liquidity, capital expenditures or capital resources.
Critical Accounting Estimates
The Company believes that the application of the following accounting policy, which is important to its financial position
and results of operations, requires significant judgments and estimates on the part of management. For a summary of the
Company’s accounting policies, including the accounting policy discussed below, see Note 1 in the Notes to Consolidated
Financial Statements.
Goodwill and indefinite-lived intangible assets — Goodwill and other intangible assets with indefinite lives, which consists
solely of trade names, are not amortized; rather they are tested for impairment at least annually, or more frequently if events or
circumstances indicate that the asset may be impaired. The Company follows the guidance prescribed in Accounting Standards
Codification (“ASC”) 350, Goodwill and Other Intangible Assets, to test goodwill and indefinite-lived intangible assets for
impairment. In assessing goodwill for impairment, the Company determines the fair value of each reporting unit utilizing an
income approach (discounted cash flows) weighted 50% and a market approach (consisting of a comparable public company
multiples methodology) weighted 50%. To determine the reasonableness of the calculated fair values, the Company reviews the
assumptions to ensure that neither the income approach nor the market approach yielded significantly different valuations. Key
assumptions and estimates used in the goodwill impairment assessment are described below. Based on the results of the
Company’s annual impairment test at October 31, 2023, all reporting units had fair values substantially in excess of their
carrying values.
The key assumptions are updated every year for each reporting unit for the income and market approaches used to
determine the fair value. Various assumptions are utilized including forecasted operating results, annual operating plans,
strategic plans, economic projections, anticipated future cash flows, the weighted average cost of capital, market data and
market multiples. The assumptions that have the most significant effect on the fair value calculations are the weighted average
cost of capital, market multiples, forecasted EBITDA and terminal growth rates. The following assumption ranges were utilized
by the Company in 2023 and 2022:
Assumptions
Weighted average cost of capital
Market multiples
Terminal growth rates
2023
Range
2022
Range
10.00% to 12.25%
9.75% to 11.50%
10.0x to 20.0x
3.0% to 3.5%
10.0x to 19.0x
2.5% to 3.5%
In assessing trade names for impairment, the Company uses the relief-from-royalty method, a form of the income
approach, to determine the fair value of its trade names. The relief-from-royalty method is dependent on a number of significant
management assumptions, including estimates of revenues, royalty rates and discount rates. Based on the results of the
Company’s annual impairment test at October 31, 2023, the trade names had fair values in excess of their carrying values.
The Company’s acquisitions have generally included significant goodwill components and the Company expects to
continue to make acquisitions. At December 31, 2023, goodwill and other indefinite-lived intangible assets totaled $2,929.2
million, or 50%, of the Company’s total assets.
See Note 6 in the Notes to Consolidated Financial Statements for further discussion on goodwill and indefinite-lived
intangible assets.
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Table of Contents
Non-GAAP Disclosures
Set forth below are reconciliations of Organic net sales, Adjusted net sales, Adjusted gross profit, Adjusted gross margin,
Adjusted net income attributable to IDEX, Adjusted diluted earnings per share (“EPS”) attributable to IDEX, Consolidated
Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and Consolidated
Adjusted EBITDA margin to their respective most directly comparable U.S. GAAP measure. Management uses these metrics to
measure performance of the Company since they exclude items that are not reflective of ongoing operations, as identified in the
reconciliations below. Management also supplements its U.S. GAAP financial statements with adjusted information to provide
investors with greater insight, transparency and a more comprehensive understanding of the information used by management
in its financial and operational decision making.
Management uses Adjusted EBITDA as its principal measure of segment performance, and believes it is a useful indicator
of the strength and performance of the Company and its segments’ ongoing business operations, as well as a way for investors
to evaluate and compare operating performance and value companies within the Company’s industry. Management believes
that Adjusted EBITDA margin is useful for the same reason as Adjusted EBITDA. The definition of Adjusted EBITDA used
here may differ from that used by other companies.
This report also references free cash flow. This non-GAAP measure is discussed and reconciled to its most directly
comparable GAAP measure in the section above titled “Free Cash Flow.”
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to,
financial measures prepared in accordance with U.S. GAAP. Due to rounding, numbers presented throughout this and other
documents may not add up or recalculate precisely. The financial results prepared in accordance with U.S. GAAP and the
reconciliations from these results should be carefully evaluated.
All table footnotes can be found at the end of this Non-GAAP Disclosures section.
1. Reconciliations of the Change in Net Sales to Organic Net Sales
Change in net sales
Less:
For the Years Ended December 31,
2023
2022
FMT
HST
FSDP
IDEX
FMT
HST
FSDP
IDEX
7%
(2%)
6%
3%
17%
19%
5%
15%
Net impact from acquisitions/divestitures(1)
Impact from foreign currency(2)
Impact from the exit of a COVID-19 testing
application(3)
Change in organic net sales
2%
—%
—%
5%
9%
—%
(1%)
(10%)
—%
—%
—%
6%
5%
—%
(1%)
(1%)
7%
(3%)
—%
13%
6%
(4%)
2%
15%
—%
(4%)
—%
9%
5%
(4%)
1%
13%
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2. Reconciliations of Reported-to-Adjusted Gross Profit, Net Sales and Gross Margin (dollars in millions)
Gross profit
Impact from the exit of a COVID-19 testing application(3)
Fair value inventory step-up charges
Adjusted gross profit
Net sales
Impact from the exit of a COVID-19 testing application(3)
Adjusted net sales
Gross margin
Adjusted gross margin
$
$
$
For the Years Ended December 31,
2023
2022
1,446.9
$
—
1.6
1,448.5
$
3,273.9
$
$
44.2%
44.2%
1,426.9
(17.9)
8.5
1,417.5
3,181.9
(17.9)
3,164.0
44.8%
44.8%
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Table of Contents
3. Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX
(in millions, except per share amounts)
For the Years Ended December 31,
2023
2022
$
596.1 $
586.9
Reported net income attributable to IDEX
Fair value inventory step-up charges
Tax impact on fair value inventory step-up charges
Restructuring expenses and asset impairments
Tax impact on restructuring expenses and asset impairments
Net impact from the exit of a COVID-19 testing application(3)
Tax impact on the exit of a COVID-19 testing application
Gain on sale of businesses - net
Tax impact on gain on sale of businesses - net
Gains on sales of assets
Tax impact on gains on sales of assets
Credit loss on note receivable from collaborative partner(4)
Tax impact on credit loss on note receivable from collaborative partner
Acquisition-related intangible asset amortization
Tax impact on acquisition-related intangible asset amortization
Adjusted net income attributable to IDEX
Reported diluted EPS attributable to IDEX
Fair value inventory step-up charges
Tax impact on fair value inventory step-up charges
Restructuring expenses and asset impairments
Tax impact on restructuring expenses and asset impairments
Net impact from the exit of a COVID-19 testing application(3)
Tax impact on the exit of a COVID-19 testing application
Gain on sale of businesses - net
Tax impact on gain on sale of businesses - net
Gains on sales of assets
Tax impact on gains on sales of assets
Credit loss on note receivable from collaborative partner(4)
Tax impact on credit loss on note receivable from collaborative partner
Acquisition-related intangible asset amortization
Tax impact on acquisition-related intangible asset amortization
1.6
(0.4)
10.9
(2.5)
—
—
(84.7)
22.7
—
—
7.7
(1.6)
94.9
(21.1)
$
$
623.6 $
7.85 $
0.02
—
0.15
(0.03)
—
—
(1.12)
0.30
—
—
0.10
(0.02)
1.25
(0.28)
8.5
(2.2)
4.5
(0.9)
(1.1)
0.3
(34.8)
5.5
(2.7)
0.6
—
—
69.0
(15.5)
618.1
7.71
0.11
(0.03)
0.06
(0.01)
(0.01)
—
(0.46)
0.07
(0.03)
0.01
—
—
0.91
(0.21)
8.12
76.0
Adjusted diluted EPS attributable to IDEX
$
8.22 $
Diluted weighted average shares outstanding
75.9
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Table of Contents
4. Reconciliations of Net Income to Adjusted EBITDA and Net Sales to Adjusted Net Sales (dollars in millions)
For the Year Ended December 31,
2023
2022
FMT
HST
FSDP
Corporate
IDEX
FMT
HST
FSDP
Corporate
IDEX
Reported net income
$ —
$ —
$ —
$
Provision for income taxes
Interest expense
Other expense (income) - net
Gain on sale of businesses - net
—
—
—
—
—
—
—
—
—
—
—
—
Operating income (loss)
374.2
253.4
192.2
Other income (expense) - net
Depreciation
Amortization
Fair value inventory step-up
charges
Restructuring expenses and asset
impairments
Net impact from the exit of a
COVID-19 testing application(3)
Gains on sales of assets
Credit loss on note receivable
from collaborative partner(4)
2.2
14.1
22.7
—
2.9
—
—
—
(1.1)
33.2
65.8
1.6
6.6
—
—
—
0.2
8.9
6.4
—
0.9
—
—
—
—
—
—
—
—
(87.3)
(6.5)
1.0
—
—
0.5
—
—
7.7
$ 595.6
$ —
$ —
$ —
$
164.7
51.7
5.2
(84.7)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ 586.7
162.7
40.7
(3.9)
(34.8)
732.5
334.0
334.9
166.6
(84.1)
751.4
(5.2)
57.2
94.9
1.6
10.9
—
—
7.7
1.8
16.1
20.8
0.4
2.3
—
(1.2)
—
1.9
25.7
41.6
8.1
0.7
(1.1)
—
—
2.4
8.4
6.6
—
1.4
—
(1.5)
—
(2.2)
0.5
—
—
0.1
—
—
—
3.9
50.7
69.0
8.5
4.5
(1.1)
(2.7)
—
Adjusted EBITDA
$ 416.1
$ 359.5
$ 208.6
$
(84.6)
$ 899.6
$ 374.2
$ 411.8
$ 183.9
$
(85.7)
$ 884.2
Net sales (eliminations)
$ 1,247.1
$ 1,316.4
$ 718.8
$
(8.4)
$ 3,273.9
$ 1,167.3
$ 1,339.2
$ 679.2
$
(3.8)
$ 3,181.9
Impact from the exit of a COVID-19
testing application(3)
Adjusted net sales (eliminations)
Net income margin
18.2%
(17.9)
$ — $ 1,321.3
(17.9)
$ 3,164.0
18.4%
Adjusted EBITDA margin
33.4%
27.3%
29.0%
n/m
27.5%
32.1%
31.2%
27.1%
n/m
27.9%
(1) Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.
(2) The portion of sales attributable to foreign currency translation is calculated as the difference between (a) the period-to-
period change in organic sales, and (b) the period-to-period change in organic sales after applying prior period foreign
exchange rates to the current year period.
(3) The impact to Net sales and Gross margin represents the acceleration of previously deferred revenue of $17.9 million as
a result of a customer’s decision to discontinue further investment in commercializing its COVID-19 testing application
in 2022 that did not reoccur in 2023, which was largely offset by an impairment charge during the same period resulting
in a $1.1 million impact on net income. See Note 14 in the Notes to Consolidated Financial Statements for further detail.
(4) Represents a reserve recorded on an investment with a collaborative partner. See Note 3 in the Notes to Consolidated
Financial Statements for further detail.
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk.
The Company is subject to market risk associated with changes in foreign currency exchange rates and interest rates as well
as inflationary factors. The Company may, from time to time, enter into foreign currency forward contracts and interest rate
swaps on its debt when it believes there is a financial advantage in doing so. A treasury risk management policy, adopted by the
Board of Directors, describes the procedures and controls over derivative financial and commodity instruments, including
foreign currency forward contracts and interest rate swaps. Under the policy, the Company does not use financial or commodity
derivative instruments for trading purposes and the use of these instruments is subject to strict approvals by senior officers.
Typically, the use of derivative instruments is limited to foreign currency forward contracts and interest rate swaps on the
38
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Company’s outstanding long-term debt. As of December 31, 2023, the Company did not have any derivative instruments
outstanding.
Foreign Currency Exchange Rates
The Company’s foreign currency exchange rate risk is limited principally to the Euro, Swiss Franc, Canadian Dollar,
British Pound, Indian Rupee, Chinese Renminbi, Swedish Krona and Brazilian Real. The Company manages its foreign
exchange risk principally through invoicing customers in the same currency as the source of products. The foreign currency
transaction losses (gains) for the periods ended December 31, 2023, 2022 and 2021 were $7.3 million, $(0.8) million and $1.1
million, respectively, and are reported within Other expense (income) - net on the Consolidated Statements of Income. See
Note 1 in the Notes to Consolidated Financial Statements for further discussion.
Interest Rate Fluctuations
The Company has interest rate exposure due to $131.0 million of the $1,333.3 million debt outstanding at December 31,
2023 being floating rate debt. The Company’s Revolving Facility and Term Facility both bear interest at either an alternate base
rate or adjusted Term SOFR (or appropriate alternative currency reference rates) plus, in each case, an applicable margin based
on the lower of the Company’s senior, unsecured, long-term debt rating or the Company’s applicable leverage ratio. At
December 31, 2023, there was $81.0 million outstanding under the Revolving Facility with an interest rate of 5.00% and $50.0
million outstanding under the Term Facility with an interest rate of 6.59%.
Inflation Risk
We source a wide variety of materials and components from a network of global suppliers. While materials are typically
available from numerous suppliers, they are subject to price fluctuations, which could have a negative impact on our results. We
seek to minimize the effects of inflation and changing prices through price increases to maintain reasonable gross margins.
39
Table of Contents
Item 8.
Financial Statements and Supplementary Data.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal
control over financial reporting is a process to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the
United States of America, and as defined in Exchange Act Rule 13a-15(f).
Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives
because of its inherent limitations. Because of such limitations, there is a risk that material misstatements may not be prevented
or detected on a timely basis by internal control over financial reporting.
Management has used the framework set forth in the report entitled “Internal Control — Integrated Framework” (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission to assess the effectiveness of the
Company’s internal control over financial reporting. Management excluded Iridian Spectral Technologies and STC Material
Solutions from its assessment of internal controls over financial reporting as these acquisitions occurred in 2023 (see Note 2 in
the Notes to the Consolidated Financial Statements for further detail). This exclusion is in accordance with the general guidance
from the Staff of the Securities and Exchange Commission that an assessment of a recently acquired business may be omitted
from the scope of management’s assessment of internal control over financial reporting for one year following the acquisition.
The total assets (excluding goodwill and intangible assets) and net sales of current year acquisitions represented approximately
one percent and zero percent, respectively, of the Consolidated Financial Statement amounts as of and for the year ended
December 31, 2023. Based on that assessment, management has concluded that the Company’s internal control over financial
reporting was effective as of December 31, 2023.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, has been audited by
Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears herein.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of IDEX Corporation
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of IDEX Corporation and subsidiaries (the “Company”) as of
December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal
Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended December 31, 2023, of the Company and our
report dated February 22, 2024, expressed an unqualified opinion on those financial statements.
As described in Management’s Report on Internal Control over Financial Reporting, management excluded Iridian Spectral
Technologies and STC Material Solutions from its assessment of internal control over financial reporting as these acquisitions
occurred in the twelve months ended December 31, 2023. The combined total assets and net sales of these acquisitions
represented approximately one percent and zero percent, respectively, of the consolidated financial statement amounts as of and
for the year ended December 31, 2023. Accordingly, our audit did not include the internal control over financial reporting at
these acquired companies.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control
over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
February 22, 2024
41
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of IDEX Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of IDEX Corporation and subsidiaries (the "Company") as of
December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, equity, and cash flows,
for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the
"financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of
the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years
in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of
America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in
Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 22, 2024, expressed an unqualified opinion on the Company's internal control over
financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that
was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that
are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and
we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Revenue — Disaggregation of Revenue — Refer to Note 5 to the financial statements
Critical Audit Matter Description
The Company is a highly diversified business with a wide range of products and services that are offered in various markets
throughout the world. The Company’s business activities are carried out by numerous individual business units, which offer a
unique set of products and include niche markets within specific geographic areas.
We identified revenue as a critical audit matter given the disaggregated nature of the Company’s operations and business units
generating revenue. This required extensive audit effort due to the volume of the underlying transactions and distinctiveness of
each individual business unit. High levels of auditor judgment were necessary to determine the nature, timing, and extent of
audit procedures and the level of disaggregation within the Company at which to perform such procedures, especially given
limited market data for certain products or geographic areas.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the Company’s revenue transactions included the following, among others:
42
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• We tested internal controls within the relevant revenue business processes, including controls over revenue recognition
and controls over the review of significant revenue transactions and operating results.
•
•
For a sample of revenue transactions, we performed detail transaction testing by agreeing the amounts recorded to
source documents and determined that revenue was recognized appropriately.
For revenue transactions not subject to detail transaction testing, we aggregated the revenue transactions at the
reporting unit level and performed substantive analytical procedures. We developed independent expectations of
revenue based on data derived from published industry indices and market and customer trends and compared our
independent expectations to the revenue recorded by management.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
February 22, 2024
We have served as the Company’s auditor since 1987.
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Table of Contents
IDEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Restructuring expenses and asset impairments
Operating income
Gain on sale of businesses - net
Other expense (income) - net
Interest expense
Income before income taxes
Provision for income taxes
Net income
Net loss attributable to noncontrolling interest
Net income attributable to IDEX
Earnings per common share:
Basic earnings per common share attributable to IDEX
Diluted earnings per common share attributable to IDEX
Share data:
Basic weighted average common shares outstanding
Diluted weighted average common shares outstanding
For the Year Ended December 31,
2023
2022
2021
$
3,273.9 $
3,181.9 $
1,827.0
1,446.9
703.5
10.9
732.5
(84.7)
5.2
51.7
760.3
164.7
595.6
0.5
1,755.0
1,426.9
652.7
22.8
751.4
(34.8)
(3.9)
40.7
749.4
162.7
586.7
0.2
$
$
$
596.1 $
586.9 $
7.87 $
7.85 $
7.74 $
7.71 $
75.6
75.9
75.7
76.0
2,764.8
1,540.3
1,224.5
578.2
9.3
637.0
—
16.2
41.0
579.8
130.5
449.3
0.1
449.4
5.91
5.88
76.0
76.4
See Notes to Consolidated Financial Statements.
44
Table of Contents
IDEX CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
Net income
Other comprehensive loss:
Reclassification adjustments for derivatives, net of tax
Pension and other postretirement adjustments, net of tax
Cumulative translation adjustment
Other comprehensive income (loss)
Comprehensive income
Comprehensive loss attributable to noncontrolling interest
Comprehensive income attributable to IDEX
For the Year Ended December 31,
2023
2022
2021
$
595.6 $
586.7 $
449.3
—
(7.4)
87.8
80.4
676.0
0.5
—
18.3
(74.9)
(56.6)
530.1
0.2
$
676.5 $
530.3 $
2.5
17.0
(75.6)
(56.1)
393.2
—
393.2
See Notes to Consolidated Financial Statements.
45
Table of Contents
IDEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in millions, except per share amounts)
ASSETS
Current assets
Cash and cash equivalents
Receivables - net
Inventories - net
Other current assets
Total current assets
Property, plant and equipment - net
Goodwill
Intangible assets - net
Other noncurrent assets
Total assets
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable
Accrued expenses
Current portion of long-term borrowings
Dividends payable
Total current liabilities
Long-term borrowings - net
Deferred income taxes
Other noncurrent liabilities
Total liabilities
Commitments and contingencies (Note 10)
Shareholders’ equity
Preferred stock:
As of December 31,
2023
2022
$
534.3 $
427.8
420.8
63.4
1,446.3
430.3
2,838.3
1,011.8
138.5
5,865.2 $
179.7 $
$
$
271.5
0.6
48.5
500.3
1,325.1
291.9
206.7
2,324.0
430.2
442.8
470.9
55.4
1,399.3
382.1
2,638.1
947.8
144.6
5,511.9
208.9
289.1
—
45.6
543.6
1,468.7
264.2
195.8
2,472.3
Authorized: 5,000,000 shares, $.01 per share par value; Issued: None
—
—
Common stock:
Authorized: 150,000,000 shares, $.01 per share par value
Issued: 90,073,413 shares at December 31, 2023 and 90,064,988 shares at December 31,
2022
Additional paid-in capital
Retained earnings
Treasury stock at cost: 14,344,820 shares at December 31, 2023 and 14,451,032 shares at
December 31, 2022
Accumulated other comprehensive loss
Total shareholders’ equity
Noncontrolling interest
Total equity
Total liabilities and equity
0.9
839.0
3,934.3
0.9
817.2
3,531.7
(1,187.0)
(1,184.3)
(45.8)
3,541.4
(0.2)
3,541.2
$
5,865.2 $
(126.2)
3,039.3
0.3
3,039.6
5,511.9
See Notes to Consolidated Financial Statements.
46
Table of Contents
IDEX CORPORATION
CONSOLIDATED STATEMENTS OF EQUITY
(Dollars in millions except share and per share amounts)
Accumulated Other Comprehensive Loss
Common
Stock and
Additional Paid-
In Capital
Retained
Earnings
Cumulative
Translation
Adjustment
Retirement
Benefits
Adjustments
Cumulative
Unrealized
Gain (Loss)
on
Derivatives
Treasury
Stock
Total
Shareholders’
Equity
Noncontrolling
Interest
Total Equity
Balance, December 31, 2020
$
776.1
$
2,841.5
$
13.4
$
Net income (loss)
Cumulative translation adjustment
Net change in retirement obligations (net of tax of
$5.3)
Net change on derivatives designated as cash flow
hedges (net of tax of $0.8)
Net issuance of 228,567 shares of common stock (net
of tax of $3.1)
Share-based compensation
—
—
—
—
—
20.4
449.4
—
—
—
—
—
Cash dividends declared - $2.16 per common share
outstanding
—
(164.4)
—
(75.6)
—
—
—
—
—
(24.4) $
—
—
17.0
—
—
—
—
Balance, December 31, 2021
$
796.5
$
3,126.5
$
(62.2) $
(7.4) $
Net income (loss)
Cumulative translation adjustment
Net change in retirement obligations (net of tax of
$6.8)
Net issuance of 216,946 shares of common stock (net
of tax of $3.1)
Repurchase of 795,423 shares of common stock
Share-based compensation
Cash dividends declared - $2.40 per common share
outstanding
Contributions received from joint venture partner
—
—
—
—
—
21.6
—
—
586.9
—
—
—
—
—
(181.7)
—
—
(74.9)
—
—
—
—
—
—
—
—
18.3
—
—
—
—
—
Balance, December 31, 2022
$
818.1
$
3,531.7
$
(137.1) $
10.9
$
Net income (loss)
Cumulative translation adjustment
Net change in retirement obligations (net of tax of
$(2.3))
Net issuance of 230,812 shares of common stock (net
of tax of $2.8)
Repurchase of 124,600 shares of common stock
Share-based compensation
—
—
—
—
—
21.8
596.1
—
—
—
—
—
Cash dividends declared - $2.56 per common share
outstanding
—
(193.5)
—
87.8
—
—
—
—
—
—
—
(7.4)
—
—
—
—
Balance, December 31, 2023
$
839.9
$
3,934.3
$
(49.3) $
3.5
$
(2.5) $
(1,063.9) $
2,540.2
$
0.1
$
2,540.3
—
—
—
2.5
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13.6
—
—
449.4
(75.6)
17.0
2.5
13.6
20.4
(164.4)
$
(1,050.3) $
2,803.1
$
—
—
—
14.1
(148.1)
—
—
—
586.9
(74.9)
18.3
14.1
(148.1)
21.6
(181.7)
—
(0.1)
—
—
—
—
—
—
—
(0.2)
—
—
—
—
—
—
0.5
449.3
(75.6)
17.0
2.5
13.6
20.4
(164.4)
$
2,803.1
586.7
(74.9)
18.3
14.1
(148.1)
21.6
(181.7)
0.5
$
(1,184.3) $
3,039.3
$
0.3
$
3,039.6
—
—
—
21.5
(24.2)
—
—
596.1
87.8
(7.4)
21.5
(24.2)
21.8
(193.5)
(0.5)
—
—
—
—
—
—
595.6
87.8
(7.4)
21.5
(24.2)
21.8
(193.5)
$
(1,187.0) $
3,541.4
$
(0.2) $
3,541.2
See Notes to Consolidated Financial Statements.
47
Table of Contents
IDEX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash flows provided by operating activities:
Gain on sale of businesses - net
Asset impairments
Credit loss on note receivable from collaborative partner
Depreciation
Amortization of intangible assets
Share-based compensation expense
Deferred income taxes
Non-cash interest expense associated with forward starting swaps
Termination of the U.S. pension plan, net of curtailment
Changes in (net of the effect from acquisitions/divestitures and foreign currency translation):
Receivables - net
Inventories - net
Other current assets
Trade accounts payable
Deferred revenue
Accrued expenses
Other - net
Net cash flows provided by operating activities
Cash flows from investing activities
Capital expenditures
Acquisition of businesses, net of cash acquired
Proceeds from sale of businesses, net of cash remitted
Purchases of marketable securities
Proceeds from sale of marketable securities
Other - net
Net cash flows used in investing activities
Cash flows from financing activities
Borrowings under revolving credit facilities
Payments under revolving credit facilities
Proceeds from issuance of long-term borrowings
Payment of long-term borrowings
Payment of make-whole redemption premium
Cash dividends paid to shareholders
Proceeds from share issuances, net of shares withheld for taxes
Repurchases of common stock
Other
Net cash flows used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Supplemental cash flow information
Cash paid for:
Interest
Income taxes - net
For the Year Ended December 31,
2023
2022
2021
$
595.6
$
586.7
$
449.3
(84.7)
(34.8)
0.8
7.7
57.2
94.9
21.8
(14.7)
—
—
20.5
66.2
(6.5)
(25.3)
12.7
(34.8)
5.3
716.7
(89.9)
(311.8)
118.6
(29.0)
24.8
3.5
(283.8)
—
—
100.0
(250.0)
—
(190.7)
21.5
(24.2)
(1.3)
(344.7)
15.9
104.1
430.2
17.4
—
50.7
69.0
21.6
(18.5)
—
—
(71.7)
(72.4)
(0.5)
17.6
(25.0)
16.6
0.7
557.4
(68.0)
(945.6)
49.4
—
39.7
7.3
(917.2)
210.4
(135.0)
200.0
—
—
(177.4)
14.1
(148.1)
(1.8)
(37.8)
(27.6)
(425.2)
855.4
534.3
$
430.2
$
—
0.8
—
46.6
56.4
20.4
(6.1)
3.3
8.6
(49.4)
(46.1)
9.0
22.9
19.8
25.8
4.0
565.3
(72.7)
(577.4)
—
(45.2)
—
(2.8)
(698.1)
—
—
499.4
(350.1)
(6.7)
(161.1)
13.6
—
(4.6)
(9.5)
(28.2)
(170.5)
1,025.9
855.4
50.8
$
37.1
$
199.5
175.6
36.0
118.2
$
$
See Notes to Consolidated Financial Statements.
48
Table of Contents
IDEX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
1. Significant Accounting Policies
Business
IDEX is an applied solutions provider specializing in the manufacturing of fluid and metering technologies, health and
science technologies and fire, safety and other diversified products built to customers’ specifications. IDEX’s products are sold
in niche markets across a wide range of industries throughout the world. The Company’s products and services include positive
displacement pumps, valves, small volume provers, flow meters, injectors and other fluid-handling pump modules and systems,
flow monitoring and other services, precision fluidics, powder and liquid processing technologies, drying systems, micro-
precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing
components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and
implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, precision
photonic solutions, firefighting pumps, valves and controls, rescue tools, lifting bags and other components and systems for the
fire and rescue industry, engineered stainless steel banding and clamping devices and precision equipment for dispensing,
metering and mixing colorants and paints. These products and services are grouped into three reportable segments: Fluid &
Metering Technologies (“FMT”), Health & Science Technologies (“HST”) and Fire & Safety/Diversified Products (“FSDP”).
Principles of Consolidation
The Consolidated Financial Statements include the Company and its subsidiaries. All intercompany transactions and
accounts have been eliminated.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America (“U.S. GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates. The principal areas of estimation reflected in the financial statements
are revenue recognition, sales returns and allowances, allowance for credit losses, inventory valuation, recoverability of long-
lived assets, valuation of goodwill and intangible assets, income taxes, product warranties, contingencies and litigation,
insurance-related items, defined benefit retirement plans and purchase accounting related to acquisitions.
Revenue Recognition
The Company accounts for a contract with a customer when it has approval from both parties, the rights and payment terms
are identified, the contract has commercial substance and collectability of the consideration is probable. The Company
determines the appropriate revenue recognition by analyzing the terms and conditions of the contract. Revenue, or Net sales, is
recognized when control of the products or services is transferred to a customer at an amount that reflects the consideration the
Company expects to be entitled to in exchange for transferring the products or providing the services. Control is transferred to
customers when performance obligations within a contract are satisfied. A performance obligation is a promise to transfer a
distinct product or service to a customer.
The majority of the Company's contracts have a single performance obligation which represents, in most cases, the product
being sold to the customer. Some contracts include multiple performance obligations such as a product and related installation,
extended warranty, software and/or maintenance services. For contracts with multiple performance obligations, the Company
allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone
selling prices of the promised products or services underlying each performance obligation.
The Company’s performance obligations are satisfied at either a point in time or over time as work progresses. For
performance obligations satisfied at a point in time, revenue is recognized when control transfers to the customer, typically
upon shipment. For performance obligations in which the Company transfers control of a product or service over time, revenue
is recognized over time as work is performed. Typically, this results when the Company performs services over time or the
Company creates a product with no alternative use and has an enforceable right to payment for its performance to date.
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For contracts that require complex design, manufacturing and installation activities, certain performance obligations may
not be separately identifiable and, therefore, not distinct. As a result, the entire contract is accounted for as a single performance
obligation. For contracts that include distinct products or services that are substantially the same and have the same pattern of
transfer to the customer over time, they are recognized as a series of distinct products or services. For product sales, each
product sold to a customer generally represents a distinct performance obligation. Certain contracts have multiple performance
obligations for which the Company allocates the transaction price to each performance obligation using an estimate of the
standalone selling price of each distinct product or service and recognizes as revenue when, or as, the performance obligation is
satisfied. In such cases, the observable standalone sales are used to determine the standalone selling price. In certain cases, the
Company may be required to estimate the standalone selling price using the expected cost plus margin approach, under which it
forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for the distinct product
or service.
When accounting for over-time contracts, the Company uses an input measure to determine the extent of progress towards
completion of the performance obligation. The Company believes this measure of progress best depicts the transfer of control to
the customer which occurs as the Company incurs costs on its contracts. Incurred cost represents work performed, which
corresponds with the transfer of control to the customer. Contract costs include labor, material and overhead. Revenue is
recognized based on the relationship between actual costs incurred to date for each contract and the total estimated costs for
such contract at completion of the performance obligation. Contract estimates are based on various assumptions to project the
outcome of future events. These assumptions include labor productivity and availability; the complexity of the work to be
performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding
from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred.
As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, the
Company reviews and updates its estimates regularly. Due to uncertainties inherent in the estimation process, it is reasonably
possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be
revised. Such revisions to costs and income are recognized in the period in which the revisions are determined as a cumulative
catch-up adjustment. The impact of the adjustment on profit recorded to date on a contract is recognized in the period the
adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted
estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company
recognizes provisions for estimated losses on incomplete contracts in the period in which such losses are determined.
The Company records allowances for discounts and product returns at the time of sale as a reduction of revenue as such
allowances can be reliably estimated based on historical experience and known trends. The Company also offers product
warranties (primarily assurance-type) and accrues its estimated exposure for warranty claims at the time of sale based upon the
length of the warranty period, warranty costs incurred and any other related information known to the Company.
Contract Assets and Liabilities
The timing of billings and cash collections can result in customer receivables, billings in excess of revenue recognized,
advance payments or deposits. Customer receivables include both amounts billed and currently due from customers as well as
unbilled amounts (contract assets) and are included in Receivables - net on the Consolidated Balance Sheets. Amounts are
billed in accordance with contractual terms or as work progresses. Unbilled amounts arise when the timing of billing differs
from the timing of revenue recognized, such as when contract provisions require specific milestones to be met before a
customer can be billed. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost
method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to invoice in
accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the
contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract.
Contract liabilities include advance payments, deposits and billings in excess of revenue recognized and are included in
deferred revenue which is classified as current or noncurrent based on the timing of when the Company expects to recognize the
revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent
liabilities on the Consolidated Balance Sheets. Advance payments and deposits represent contract liabilities and are recorded
when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual
arrangements, including those with performance obligations satisfied over time. The Company generally receives advance
payments from customers related to maintenance services which are recognized ratably over the service term. The Company
also receives deposits from customers on certain orders which the Company recognizes as revenue at a point in time. Billings in
excess of revenue recognized represent contract liabilities and primarily relate to performance obligations satisfied over time
when the cost-to-cost method is utilized and revenue cannot yet be recognized as the Company has not completed the
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corresponding performance obligation. Contract liabilities are derecognized when revenue is recognized and the performance
obligation is satisfied.
Shipping and Handling Costs
Shipping and handling costs are included in Cost of sales and are recognized as a period expense during the period in
which they are incurred.
Advertising Costs
Advertising costs of $15.9 million, $14.9 million and $10.7 million for 2023, 2022 and 2021, respectively, are expensed as
incurred within Selling, general and administrative expenses.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with an original maturity of 3 months or less to be cash
and cash equivalents.
Marketable Securities
From time to time, the Company may hold investments in marketable securities, which are recorded in Other current assets
in the Consolidated Balance Sheets. These investments are recorded at fair value, with gains and losses, dividends and interest
income included in Other expense (income) - net in the Consolidated Statements of Income. See Note 8 for further discussion
on the marketable securities held by the Company.
Accounts Receivable and Allowance for Credit Losses
Accounts receivable are recorded at face amount less an allowance for credit losses. The allowance is an estimate based on
historical collection experience, current and future economic and market conditions and a review of the current status of each
customer's trade accounts receivable. Management evaluates the aging of the accounts receivable balances and the financial
condition of its customers and all other forward-looking information that is reasonably available to estimate the amount of
accounts receivable that may not be collected in the future and records the appropriate provision.
Inventories
The Company states inventories at the lower of cost or net realizable value. Cost, which includes material, labor and
overhead, is determined on a first in, first out basis. The Company makes adjustments to reduce the cost of inventory to its net
realizable value, if required, for estimated excess, obsolete, zero usage or impaired balances. Factors influencing these
adjustments include changes in market demand, product life cycle and engineering changes.
Impairment of Long-Lived Assets
A long-lived asset is reviewed for impairment if an event occurs or circumstances change that would more likely than not
reduce the fair value of the asset below its carrying value, as measured by comparing its net book value to the projected
undiscounted future cash flows generated by its use. The Company groups and evaluates these long-lived assets for impairment
at the lowest level at which individual cash flows can be identified. A long-lived asset impairment exists when the carrying
value of the asset group exceeds its fair value. The amount and timing of the impairment charge for an asset group requires the
estimation of future cash flows, which are then discounted to determine the fair value of the asset group. An impaired asset
group is recorded at its estimated fair value. Refer to Note 14 for further discussion on impairment of long-lived assets.
Goodwill and Indefinite-Lived Intangible Assets
Accounting Standards Codification (“ASC”) 350, Goodwill and Other Intangible Assets (“ASC 350”), requires that the
Company review the carrying value of goodwill and indefinite-lived intangible assets annually, or if an event occurs or
circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The
Company evaluates the recoverability of these assets as of October 31 based on the estimated fair value of each reporting unit
and the indefinite-lived intangible assets. See Note 6 for further discussion on goodwill and indefinite-lived intangible assets.
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Borrowing Expenses
Expenses incurred in securing and issuing debt are capitalized and included as a reduction of Long-term borrowings - net.
These amounts are amortized over the life of the related borrowing and the related amortization is included in Interest expense
in the Consolidated Statements of Income.
Earnings per Common Share
Diluted earnings per common share (“EPS”) attributable to IDEX is computed by dividing Net income attributable to
IDEX by the weighted average number of common shares outstanding (basic) plus common stock equivalents outstanding
(diluted) during the year. Common stock equivalents consist of restricted stock, performance share units and stock options,
which have been included in the calculation of weighted average common shares outstanding using the treasury stock method.
ASC 260, Earnings Per Share, concludes that all outstanding unvested share-based payment awards that contain rights to
non-forfeitable dividends participate in undistributed earnings with common shareholders. If awards are considered
participating securities, the Company is required to apply the two-class method of computing basic and diluted earnings per
share. The Company has determined that its outstanding shares of restricted stock are participating securities. Accordingly,
Diluted EPS attributable to IDEX was computed using the two-class method prescribed by ASC 260.
Basic weighted average common shares outstanding reconciles to diluted weighted average common shares outstanding as
follows:
Basic weighted average common shares outstanding
Dilutive effect of restricted stock, performance share units and stock options
Diluted weighted average common shares outstanding
2023
2022
2021
(In millions)
75.7
0.3
76.0
75.6
0.3
75.9
76.0
0.4
76.4
Options to purchase shares of common stock that were not included in the computation of Diluted EPS attributable to
IDEX because the effect of their inclusion would have been antidilutive were as follows:
Antidilutive shares not included in Diluted EPS attributable to IDEX
2023
2022
2021
0.2
0.5
0.3
Share-Based Compensation
The Company accounts for share-based payments in accordance with ASC 718, Compensation-Stock Compensation.
Accordingly, the Company expenses the fair value of the awards granted under its share-based compensation plans. That cost is
recognized in the Consolidated Financial Statements over the requisite service period of the grants. See Note 15 for further
discussion on share-based compensation.
Depreciation and Amortization
Property and equipment are stated at cost, with depreciation provided using the straight-line method over the following
estimated useful lives:
Land improvements
Buildings and improvements
Machinery, equipment and other
Office and transportation equipment
8 to 12 years
8 to 30 years
3 to 12 years
2 to 10 years
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Certain identifiable intangible assets are amortized over their estimated useful lives using the straight-line method. The
estimated useful lives used in the computation of amortization of identifiable intangible assets are as follows:
Patents
Trade names
Customer relationships
Unpatented technology
Software
Research and Development Expenditures
5 to 20 years
15 to 20 years
5 to 20 years
8 to 20 years
5 years
Costs associated with engineering activities, including research and development, are expensed in the period incurred and
are included in Cost of sales.
Total engineering expenses, which include research and development as well as application and support engineering, were
$107.5 million, $95.4 million and $82.9 million in 2023, 2022 and 2021, respectively. Research and development expenses,
which include costs associated with developing new products and major improvements to existing products, were $68.4 million,
$61.4 million and $50.1 million in 2023, 2022 and 2021, respectively.
Foreign Currency Translation and Transaction
The functional currency of substantially all operations outside the United States is the respective local currency.
Accordingly, those foreign currency balance sheet accounts have been translated using the exchange rates in effect as of the
balance sheet date and the income statement amounts have been translated using the average monthly exchange rates for the
year. Translation adjustments from year to year have been reported in Accumulated other comprehensive loss in the
Consolidated Balance Sheets. Foreign currency transaction gains and losses from transactions denominated in a currency other
than the functional currency of the subsidiary involved are reported within Other expense (income) - net in the Consolidated
Statements of Income. Net transaction loss (gain) for the years ended December 31, 2023, 2022 and 2021 was $7.3 million,
$(0.8) million and $1.1 million, respectively.
Income Taxes
Income tax expense includes U.S., state, local and international income taxes. Deferred tax assets and liabilities are
recognized for the tax consequences of temporary differences between the financial reporting and tax bases of existing assets
and liabilities and for loss carryforwards. The tax rate used to determine the deferred tax assets and liabilities is the enacted tax
rate for the year and the manner in which the differences are expected to reverse. Valuation allowances are recorded to reduce
deferred tax assets to the amount that will more likely than not be realized. See Note 12 for further discussion on income taxes.
Concentration of Credit Risk
The Company is not dependent on a single customer as its largest customer accounted for less than 3% of net sales for all
years presented.
Recently Adopted Accounting Standards
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with
Customers, which adds contract assets and contract liabilities to the list of exceptions to the recognition and measurement
principles that apply to business combinations and requires that an acquirer recognize and measure contract assets and contract
liabilities acquired in a business combination in accordance with revenue recognition guidance. The Company adopted this
standard on a prospective basis for the annual period beginning January 1, 2023. The adoption of this standard did not have a
material impact on the Company’s Consolidated Financial Statements.
Recently Issued Accounting Standards
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures, which improves the disclosures required for reportable segments in the Company’s annual and interim financial
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statements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual
periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.
Adoption of this ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption
is permitted. The Company is currently evaluating the impact of the adoption of this standard on the Company’s Consolidated
Financial Statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires public
entities, on an annual basis, to provide disclosures of specific categories in the rate reconciliation, additional information for
reconciling items that meet a quantitative threshold and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is
effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently
evaluating the impact of the adoption of this standard on the Company’s Consolidated Financial Statements and disclosures.
2. Acquisitions and Divestitures
All of the Company’s acquisitions of businesses have been accounted for under ASC 805, Business Combinations.
Accordingly, the assets and liabilities of the acquired companies, after adjustments to reflect the fair values assigned to the
assets and liabilities, have been included in the Company’s Consolidated Balance Sheets from their respective dates of
acquisition. The results of operations of businesses acquired have been included in the Company’s Consolidated Statements of
Income since the respective dates of acquisition. The results of operations of divestitures have been included in the Company’s
Consolidated Statements of Income through the respective dates of disposition. Supplemental pro forma information has not
been provided as the acquisitions did not have a material impact on the Company’s Consolidated Financial Statements
individually or in the aggregate. In addition, the divestitures did not represent a strategic shift that had a major effect on
operations and financial results and, therefore, did not qualify for presentation as discontinued operations.
2023 Acquisitions
Iridian
in designing and manufacturing
On May 19, 2023, the Company acquired Iridian Spectral Technologies (“Iridian”) in a stock acquisition. Iridian is a global
leader
laser communications,
telecommunications and life sciences markets and expands the Company’s array of optical technology offerings. Headquartered
in Ottawa, Canada, Iridian operates in the Company’s Scientific Fluidics & Optics reporting unit within the HST segment.
Iridian was acquired for cash consideration of $109.8 million. The entire purchase price was funded with cash on hand.
Goodwill and intangible assets recognized as part of this transaction were $52.7 million and $45.6 million, respectively. The
goodwill is not deductible for tax purposes.
thin-film, multi-layer optical filters serving
the
The Company made a preliminary allocation of the purchase price for the Iridian acquisition as of the acquisition date
based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value
measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information,
primarily related to the valuations of these assets and liabilities, and continues to integrate the newly acquired business, the
Company will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the
acquisition date are considered for subsequent adjustment. The Company will continue to make required adjustments to the
purchase price allocation prior to the completion of the measurement period.
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The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair
values at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Other noncurrent assets
Total assets acquired
Current liabilities
Deferred income taxes
Other noncurrent liabilities
Net assets acquired(1)
$
$
Total
10.6
19.9
52.7
45.6
5.4
134.2
(1.2)
(18.3)
(4.9)
109.8
(1) During the fourth quarter of 2023, the Company finalized the net working capital of the assets and liabilities acquired,
resulting in a $0.5 million adjustment to reduce the purchase price of the Iridian business.
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill
recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Unpatented technology
Acquired intangible assets
STC
Total
Weighted Average Life
$
$
5.2
29.3
11.1
45.6
15
12
11
On December 14, 2023, the Company acquired STC Material Solutions (“STC”) in a stock acquisition. STC specializes in
the design and manufacturing of technical ceramics and hermetic sealing products for the most extreme, mission critical
applications in the semiconductor, aerospace and defense, industrial technology, medical technology and energy markets.
Headquartered in St. Albans, Vermont, with additional operations in Santa Ana, California, STC operates in the Company’s
Scientific Fluidics & Optics reporting unit within the HST segment. STC was acquired for cash consideration of $202.0 million.
The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction
were $104.0 million and $95.3 million, respectively. The goodwill is not deductible for tax purposes.
The Company made a preliminary allocation of the purchase price for the STC acquisition as of the acquisition date based
on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements
are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information, primarily
related to the valuations of these assets and liabilities, and continues to integrate the newly acquired business, the Company will
refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date
are considered for subsequent adjustment. The Company will continue to make required adjustments to the purchase price
allocation prior to the completion of the measurement period.
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Table of Contents
The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair
values at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Other noncurrent assets
Total assets acquired
Current liabilities
Deferred income taxes
Other noncurrent liabilities
Net assets acquired
$
$
Total
16.7
12.5
104.0
95.3
3.1
231.6
(5.4)
(21.7)
(2.5)
202.0
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill
recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Unpatented technology
Acquired intangible assets
2022 Acquisitions
Nexsight
Total
Weighted Average Life
$
$
9.3
66.0
20.0
95.3
15
15
11
On February 28, 2022, the Company acquired Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and
Pipeline Renewal Technologies (“Nexsight”) in a partial stock and partial asset acquisition. Nexsight complements and creates
synergies with the Company’s existing iPEK and ADS business units that design and create sewer crawlers, inspection and
monitoring systems and software applications that allow teams to identify, anticipate and correct wastewater system issues
remotely. Headquartered in Randolph, New Jersey, Nexsight operates in the Company’s Water reporting unit within the FMT
segment. Nexsight was acquired for cash consideration of $112.5 million. The entire purchase price was funded with cash on
hand. Goodwill and intangible assets recognized as part of this transaction were $54.7 million and $49.8 million, respectively.
The goodwill is partially deductible for tax purposes.
The Company finalized the allocation of the purchase price for the Nexsight acquisition as of the acquisition date based on
its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements
are classified as Level 3 in the fair value hierarchy.
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The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values
at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Other noncurrent assets
Total assets acquired
Current liabilities
Deferred income taxes
Other noncurrent liabilities
Net assets acquired
$
$
Total
16.6
2.0
54.7
49.8
4.3
127.4
(9.2)
(1.9)
(3.8)
112.5
Acquired intangible assets consist of trade names, customer relationships and software. The goodwill recorded for the
acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Software
Acquired intangible assets
KZValve
Total
Weighted Average Life
$
$
13.5
31.5
4.8
49.8
15
10
5
On May 2, 2022, the Company acquired KZ CO. (“KZValve”) in an asset acquisition. KZValve is a leading manufacturer
of electric valves and controllers used primarily in agricultural applications. KZValve augments and expands IDEX’s
agricultural portfolio, complementing Banjo’s current fluid management solutions for these applications. Headquartered in
Greenwood, Nebraska, KZValve operates in the Company’s Agriculture reporting unit within the FMT segment. KZValve was
acquired for cash consideration of $120.1 million. The entire purchase was funded with cash on hand. Goodwill and intangible
assets recognized as part of this transaction were $56.4 million and $52.0 million, respectively. The goodwill is deductible for
tax purposes.
The Company finalized the allocation of the purchase price for the KZValve acquisition as of the acquisition date based on
its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements
are classified as Level 3 in the fair value hierarchy.
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The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values
at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Deferred income taxes
Other noncurrent assets
Total assets acquired
Current liabilities
Net assets acquired
Total
9.7
1.8
56.4
52.0
0.2
1.0
121.1
(1.0)
120.1
$
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill
recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Unpatented technology
Acquired intangible assets
Muon Group
Total
Weighted Average Life
$
$
7.5
36.0
8.5
52.0
15
13
10
On November 18, 2022, the Company acquired the stock of Muon B.V. and its subsidiaries (“Muon Group”). Muon Group
manufactures highly precise flow paths in a variety of materials that enable the movement of various liquids and gases in
critical applications for medical, semiconductor, food processing, digital printing and filtration technologies. Muon Group
maintains operations in Hapert, the Netherlands; Eerbeek, the Netherlands; Wijchen, the Netherlands; Dorset, England and
Pune, India and operates in the Company’s Scientific Fluidics & Optics reporting unit within the HST segment. Muon Group
was acquired for cash consideration of $713.0 million. The purchase price was funded with $342.6 million of cash on hand,
$170.4 million of proceeds from the Company's Revolving Facility (as defined below) and $200.0 million of proceeds from the
Company's Term Facility (as defined below). Goodwill and intangible assets recognized as part of this transaction were $396.6
million and $319.1 million, respectively. The goodwill is not deductible for tax purposes.
The Company finalized the allocation of the purchase price for the Muon Group acquisition as of the acquisition date based
on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements
are classified as Level 3 in the fair value hierarchy.
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The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values
at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Other noncurrent assets
Total assets acquired
Current liabilities
Deferred income taxes
Other noncurrent liabilities
Net assets acquired
Total
$
$
51.4
57.6
396.6
319.1
9.6
834.3
(26.8)
(83.5)
(11.0)
713.0
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill
recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Unpatented technology
Acquired intangible assets
2021 Acquisitions
ABEL
Total
Weighted Average Life
$
$
38.3
212.4
68.4
319.1
15
13
11
On March 10, 2021, the Company acquired the stock of ABEL Pumps, L.P. and certain of its affiliates (“ABEL”). ABEL
designs and manufactures highly engineered reciprocating positive displacement pumps for a variety of end markets, including
mining, marine, power, water, wastewater and other general industries. Headquartered in Büchen, Germany, with sales and
service locations in Madrid, Spain, and subsequent to the acquisition, with operations in Mansfield, Ohio, ABEL operates in the
Company’s Pumps reporting unit within the FMT segment. ABEL was acquired for cash consideration of $106.3 million. The
entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were
$42.7 million and $46.0 million, respectively. The goodwill is not deductible for tax purposes.
The Company finalized the allocation of the purchase price for the ABEL acquisition as of the acquisition date based on its
understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are
classified as Level 3 in the fair value hierarchy.
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The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values
at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Deferred income taxes
Other noncurrent assets
Total assets acquired
Current liabilities
Other noncurrent liabilities
Net assets acquired
$
$
Total
18.1
4.0
42.7
46.0
2.6
0.1
113.5
(7.1)
(0.1)
106.3
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill
recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Unpatented technology
Acquired intangible assets
Airtech
Total
Weighted Average Life
$
$
9.0
30.0
7.0
46.0
15
13
11
On June 14, 2021, the Company acquired the stock of Airtech Group, Inc., US Valve Corporation and related entities
(“Airtech”). Airtech designs and manufactures a wide range of highly-engineered pressure technology products, including
vacuum pumps, regenerative blowers, compressor systems and valves for a variety of end markets, including alternative energy,
food processing, medical, packaging and transportation. Headquartered in Rutherford, New Jersey, with primary manufacturing
operations in Werneck, Germany and Shenzhen, China, Airtech operates in the Company’s Performance Pneumatic
Technologies reporting unit within the HST segment. Airtech was acquired for cash consideration of $471.0 million. The entire
purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $268.5
million and $202.3 million, respectively. The goodwill is not deductible for tax purposes.
The Company finalized the allocation of the purchase price for the Airtech acquisition as of the acquisition date based on
its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements
are classified as Level 3 in the fair value hierarchy.
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The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values
at the acquisition date, is as follows:
Current assets, net of cash acquired
Property, plant and equipment
Goodwill
Intangible assets
Other noncurrent assets
Total assets acquired
Current liabilities
Deferred income taxes
Other noncurrent liabilities
Net assets acquired
$
$
Total
45.3
4.8
268.5
202.3
10.2
531.1
(11.8)
(39.9)
(8.4)
471.0
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill
recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.
The acquired intangible assets and weighted average amortization periods are as follows:
Trade names
Customer relationships
Unpatented technology
Acquired intangible assets
Acquisition-Related Costs
Total
Weighted Average Life
$
$
15.4
162.9
24.0
202.3
15
13
11
The Company incurred acquisition costs related to completed, pending and potential acquisitions, including those that
ultimately were not completed. These costs were recorded in Selling, general and administrative expenses. The Company also
incurred fair value inventory step-up charges associated with completed acquisitions. These costs were recorded in Cost of
sales. A summary of the acquisition costs and the fair value inventory step-up charges recorded in the years ended December
31, 2023, 2022 and 2021 are presented in the following table:
Acquisition costs
Fair value inventory step-up charges
2023
2022
2021
$
$
7.3 $
1.6 $
6.8 $
8.5 $
6.5
11.6
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Divestitures
The Company periodically reviews its businesses relative to its core business and customers and evaluates if refinements
may be needed. As such, from time to time, the Company may sell various businesses or assets for a variety of reasons. Any
resulting gain or loss recognized due to divestitures is recorded within Gain on sale of businesses - net in the Consolidated
Statements of Income.
On December 29, 2023, the Company completed the sale of Novotema, SpA (“Novotema”) for proceeds of $8.3 million,
net of cash remitted, resulting in a loss on the sale of $9.1 million. There was no income tax impact associated with this
transaction in the Consolidated Statements of Income due to the participation exemption of its consolidated group. The results
of Novotema were reported in the Sealing Solutions reporting unit within the HST segment.
On August 3, 2023, the Company completed the sale of Micropump, Inc. (“Micropump”) for proceeds of $110.3 million,
net of cash remitted, resulting in a pre-tax gain on the sale of $93.8 million. The divestiture resulted in $22.7 million of income
tax expense in the Consolidated Statements of Income during the year ended December 31, 2023. Micropump was its own
reporting unit and its results were reported within the HST segment.
On September 9, 2022, the Company completed the sale of Knight LLC (“Knight”) for proceeds of $49.4 million, net of
cash remitted, resulting in a pre-tax gain on the sale of $34.8 million. The divestiture resulted in $5.5 million of income tax
expense in the Consolidated Statements of Income during the year ended December 31, 2022. The results of Knight were
reported in the Water reporting unit within the FMT segment.
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3. Collaborative Investments
On May 12, 2020, a subsidiary of IDEX entered into a joint venture agreement with a third party to form a limited liability
company (the “Joint Venture”) that manufactures and sells high performance elastomer seals for the oil and gas industry to
customers within the Kingdom of Saudi Arabia as well as exports these high performance elastomer seals outside of the
Kingdom of Saudi Arabia. The Joint Venture maintains operations in Dammam, Saudi Arabia and operates in the Company’s
Sealing Solutions reporting unit within the HST segment. The Company has contributed $0.7 million for 55% of the share
capital while the third-party partner has contributed $0.6 million for 45% of the share capital. The Joint Venture has been
selling since July 2022. Since IDEX controls the entity, IDEX has consolidated the Joint Venture and recorded a
Noncontrolling interest in its Consolidated Financial Statements.
During 2021 and 2022, a subsidiary of IDEX funded a total of $7.2 million in promissory notes as an investment in a start-
up company that provides communication technology to improve individual performance and team coordination for
firefighters’ responses, which aligns with IDEX’s FSDP segment’s strategic plan. On a quarterly basis, the Company evaluates
whether an allowance for credit losses is required for these promissory notes and measures the allowance using the current
expected credit loss model. During the second quarter of 2023, IDEX determined that its investment may no longer be
recoverable. As a result, IDEX recorded a credit loss of $7.7 million in Other expense (income) - net in the Consolidated
Statements of Income and a reserve in Other noncurrent assets on the Consolidated Balance Sheets for the full amount of the
principal and accrued interest outstanding. During the fourth quarter of 2023, IDEX converted the promissory notes to equity,
resulting in a cost method investment with zero value.
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4. Balance Sheet Components
RECEIVABLES - NET
Customers
Other
Total
Less allowance for credit losses
Total receivables - net
INVENTORIES - NET
Raw materials and components parts
Work in process
Finished goods
Total inventories - net
PROPERTY, PLANT AND EQUIPMENT - NET
Land and improvements
Buildings and improvements
Machinery, equipment and other
Office and transportation equipment
Construction in progress
Total
Less accumulated depreciation and amortization
Total property, plant and equipment - net
ACCRUED EXPENSES
Payroll and related items
Management incentive compensation
Income taxes payable
Insurance
Warranty
Deferred revenue
Lease liability
Restructuring
Accrued interest
Pension and retiree medical obligations
Other
Total accrued expenses
OTHER NONCURRENT LIABILITIES
Pension and retiree medical obligations
Transition tax payable
Deferred revenue
Lease liability
Other
December 31,
2023
2022
$
419.0 $
16.3
435.3
7.5
427.8 $
268.1 $
44.5
108.2
420.8 $
30.8 $
234.7
551.0
106.0
53.5
976.0
545.7
430.3 $
431.3
19.5
450.8
8.0
442.8
301.2
54.3
115.4
470.9
35.2
214.2
492.4
100.6
56.4
898.8
516.7
382.1
$
$
$
$
$
$
97.1 $
102.7
16.4
18.5
11.4
9.1
55.9
22.0
2.1
4.5
3.4
31.1
$
$
271.5 $
65.1 $
5.0
17.3
98.1
21.2
26.4
30.2
11.2
8.1
44.7
21.6
1.4
5.5
3.3
34.0
289.1
55.1
9.1
15.0
96.6
20.0
Total other noncurrent liabilities
$
206.7 $
195.8
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The valuation and qualifying account activity for the years ended December 31, 2023 and 2022 is as follows:
ALLOWANCE FOR CREDIT LOSSES
Beginning balance January 1
Charged to costs and expenses, net of recoveries
Utilization
Other adjustments, including acquisitions and Foreign currency translation
Ending balance December 31
5. Revenue
Disaggregation of Revenue
2023
2022
$
$
8.0 $
0.6
(1.2)
0.1
7.5 $
7.2
2.2
(1.2)
(0.2)
8.0
The Company has a comprehensive offering of products, including technologies, built to customers’ specifications that are
sold in niche markets throughout the world. The Company disaggregates revenue from contracts with customers by reporting
unit and geographical region for each segment as the Company believes it best depicts how the amount, nature, timing and
uncertainty of its revenue and cash flows are affected by economic factors. Revenue, or Net sales, was attributed to
geographical region based on the location of the customer. The following tables present revenue disaggregated by reporting unit
and geographical region.
Revenue by reporting unit for the years ended December 31, 2023, 2022 and 2021 was as follows:
Pumps
Water
Energy
Agriculture
Valves
Intersegment elimination
Fluid & Metering Technologies
Scientific Fluidics & Optics(1)
Performance Pneumatic Technologies
Sealing Solutions
Material Processing Technologies
Micropump(2)
Intersegment elimination
Health & Science Technologies
Fire & Safety
Dispensing
BAND-IT
Intersegment elimination
Fire & Safety/Diversified Products
Total net sales
For the Year Ended December 31,
2023
2022
2021
$
402.9 $
396.5 $
345.8
209.3
159.6
129.5
307.8
191.3
152.8
118.9
345.1
255.3
169.0
107.4
121.9
(2.9)
(1.1)
(0.7)
1,244.2
1,166.2
681.5
250.0
242.3
120.7
21.9
639.0
257.6
266.0
138.1
38.5
(2.9)
(2.4)
1,313.5
1,336.8
431.9
167.5
119.4
(2.6)
716.2
400.1
167.5
111.6
(0.3)
678.9
$
3,273.9 $
3,181.9 $
998.0
508.0
182.2
264.2
134.5
32.9
(2.8)
1,119.0
377.5
169.6
100.8
(0.1)
647.8
2,764.8
(1) The year ended December 31, 2022 includes the acceleration of previously deferred revenue of $17.9 million as a result
of a customer’s decision to discontinue further investment in commercializing its COVID-19 testing application. See Note
14 for further detail.
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(2) Revenue from Micropump (sold on August 3, 2023) has been included in the Company’s Consolidated Statements of
Income through the date of disposition. See Note 2 for further detail.
Revenue by geographical region for the years ended December 31, 2023, 2022 and 2021 was as follows:
U.S.
North America, excluding U.S.
Europe
Asia
Other(1)
Intersegment elimination
Total net sales
U.S.(2)
North America, excluding U.S.
Europe(2)
Asia
Other(1)
Intersegment elimination
Total net sales
U.S.
North America, excluding U.S.
Europe
Asia
Other(1)
Intersegment elimination
Total net sales
For the Year Ended December 31, 2023
FMT
HST
FSDP
IDEX
$
695.7 $
575.5 $
371.9 $
1,643.1
70.3
213.8
177.6
89.7
22.6
439.9
249.4
29.0
33.4
166.7
108.5
38.3
(2.9)
(2.9)
(2.6)
126.3
820.4
535.5
157.0
(8.4)
$
1,244.2 $
1,313.5 $
716.2 $
3,273.9
For the Year Ended December 31, 2022
FMT
HST
FSDP
IDEX
$
660.8 $
646.9 $
343.3 $
1,651.0
71.5
194.6
157.8
82.6
25.8
379.7
261.3
25.5
35.3
160.9
104.2
35.5
(1.1)
(2.4)
(0.3)
132.6
735.2
523.3
143.6
(3.8)
$
1,166.2 $
1,336.8 $
678.9 $
3,181.9
For the Year Ended December 31, 2021
FMT
HST
FSDP
IDEX
$
532.9 $
489.7 $
317.0 $
1,339.6
61.6
197.2
143.7
63.3
(0.7)
998.0 $
23.7
341.0
241.8
25.6
(2.8)
1,119.0 $
28.5
161.5
110.0
30.9
(0.1)
647.8 $
113.8
699.7
495.5
119.8
(3.6)
2,764.8
$
(1) Other includes: South America, Middle East, Australia and Africa.
(2) The HST segment includes the acceleration of $17.9 million of previously deferred revenue as a result of a customer’s
decision to discontinue further investment in commercializing its COVID-19 testing application, of which $9.5 million was
recognized in the U.S. and $8.4 million was recognized in Europe in the year ended December 31, 2022. See Note 14 for
further detail.
Performance Obligations
Revenue from products and services transferred to customers at a point in time was approximately 95% and over time was
approximately 5% in each of the years ended December 31, 2023, 2022, and 2021.
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Contract Balances
The composition of customer receivables was as follows:
Billed receivables
Unbilled receivables
Total customer receivables
The composition of deferred revenue was as follows:
Deferred revenue - current
Deferred revenue - noncurrent
Total deferred revenue
6. Goodwill and Intangible Assets
December 31, 2023
December 31, 2022
$
$
408.1 $
10.9
419.0 $
421.3
10.0
431.3
December 31, 2023
December 31, 2022
$
$
55.9 $
17.3
73.2 $
44.7
15.0
59.7
The changes in the carrying amount of goodwill for 2023 and 2022, by reportable business segment, were as follows:
Goodwill
Accumulated goodwill impairment losses
Balance at January 1, 2022
Foreign currency translation
Acquisitions
Measurement period adjustments
Divestitures
Balance at December 31, 2022
Foreign currency translation
Acquisitions
Measurement period adjustments
Divestitures
Balance at December 31, 2023
FMT
HST
FSDP
Total
$
701.7 $
1,264.3 $
402.3 $
2,368.3
(20.7)
681.0
(8.4)
112.9
0.3
(5.6)
780.2
6.6
—
(1.8)
—
(149.8)
1,114.5
(11.5)
391.1
0.9
—
(30.1)
372.2
(9.3)
—
—
—
(200.6)
2,167.7
(29.2)
504.0
1.2
(5.6)
1,495.0
362.9
2,638.1
38.6
156.7
5.4
(11.0)
5.7
—
—
—
50.9
156.7
3.6
(11.0)
$
785.0 $
1,684.7 $
368.6 $
2,838.3
Goodwill represents the purchase price in excess of the net amount assigned to the assets acquired and liabilities assumed
and was tested for impairment at each of the Company’s reporting units as determined in accordance with ASC 350 as of
October 31, 2023, the Company’s annual impairment test date, with no impairment noted. In assessing the fair value of the
reporting units, the Company considers both the market approach and the income approach. Under the market approach, the fair
value of the reporting unit is determined by the respective trailing 12 month earnings before interest, income taxes, depreciation
and amortization (“EBITDA”) and the forward looking 2024 EBITDA (50% each), based on multiples of comparable public
companies. The market approach is dependent on a number of significant management assumptions including forecasted
EBITDA and selected market multiples. Under the income approach, the fair value of the reporting unit is determined based on
the present value of estimated future cash flows. The income approach is dependent on a number of significant management
assumptions including estimates of operating results, capital expenditures, net working capital requirements, long-term growth
rates and discount rates. Weighting was equally attributed to both the market and the income approaches (50% each) in arriving
at the fair value of the reporting units. In 2023 and 2022, there were no events or circumstances that would have required an
interim impairment test.
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The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset
at December 31, 2023 and 2022:
At December 31, 2023
At December 31, 2022
Gross
Carrying
Amount
Accumulated
Amortization
Net
Weighted
Average
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amortized intangible assets:
Patents
Trade names
Customer relationships
Unpatented technology
Software
5.3
Total amortized intangible assets 1,274.1
Indefinite-lived intangible assets:
$
2.7 $
(2.0) $
0.7
171.9
860.7
233.5
(54.3)
(228.7)
(66.3)
(1.9)
117.6
632.0
167.2
3.4
(353.2)
920.9
12
15
13
12
5
13
$
2.9 $
(1.8) $
1.1
186.5
772.2
207.1
4.8
(71.4)
(184.9)
(57.8)
(0.7)
115.1
587.3
149.3
4.1
1,173.5
(316.6)
856.9
Banjo trade name
Akron Brass trade name
Total intangible assets
62.1
28.8
—
—
62.1
28.8
62.1
28.8
—
—
62.1
28.8
$ 1,365.0 $
(353.2) $ 1,011.8
$ 1,264.4 $
(316.6) $ 947.8
The Banjo and Akron Brass trade names are indefinite-lived intangible assets that were also tested for impairment as of
October 31, 2023, with no impairments noted. These indefinite-lived intangible assets are tested for impairment on an annual
basis in accordance with ASC 350 or more frequently if events or changes in circumstances indicate that the assets might be
impaired. The Company uses the relief-from-royalty method, a form of the income approach, to determine the fair value of
these trade names. The relief-from-royalty method is dependent on a number of significant management assumptions, including
estimates of revenues, royalty rates and discount rates. In 2023 and 2022, there were no events or circumstances that would
have required an interim impairment test.
Amortization of intangible assets was $94.9 million, $69.0 million and $56.4 million in 2023, 2022 and 2021, respectively.
Based on the intangible asset balances as of December 31, 2023, expected amortization expense for the years 2024 through
2028 is as follows:
Maturity of Intangible Assets
Estimated Amortization
2024
2025
2026
2027
2028
$
98.8
97.3
95.7
92.4
89.4
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7. Borrowings
Borrowings at December 31, 2023 and 2022 consisted of the following:
2023
2022
3.20% Senior Notes, repaid in June 2023 (the “3.20% Senior Notes”)
$
— $
3.37% Senior Notes, due June 2025 (the “3.37% Senior Notes”)
5.13% Senior Notes, due June 2028 (the “5.13% Senior Notes”)
3.00% Senior Notes, due May 2030 (the “3.00% Senior Notes”)
2.625% Senior Notes, due June 2031 (the “2.625% Senior Notes”)
$800.0 million Revolving Facility, due November 2027 (the “Revolving Facility”)
$200.0 million Term Facility, due November 2027 (the “Term Facility”)
Other borrowings
Total borrowings
Less current portion
Less deferred debt issuance costs
Less unaccreted debt discount
Long-term borrowings
Revolving Credit Facility and Term Facility
100.0
100.0
500.0
500.0
81.0
50.0
2.3
100.0
100.0
—
500.0
500.0
77.7
200.0
0.1
1,333.3
1,477.8
0.6
6.5
1.1
—
7.9
1.2
$
1,325.1 $
1,468.7
On November 1, 2022, the Company entered into an amended and restated credit agreement (as amended and restated, the
“Credit Agreement”) along with certain of its subsidiaries, as borrowers (the “Borrowers”), Bank of America, N.A., as
administrative agent, swing line lender and an issuer of letters of credit, and other agents party thereto. The Credit Agreement
consists of a revolving credit facility in an aggregate principal amount of $800 million and a term credit facility available to the
Company in an aggregate principal amount of $200 million, both of which have a final maturity date of November 1, 2027. The
maturity date of the Revolving Facility may be extended under certain conditions for an additional one-year term. Up to
$100 million of the Revolving Facility is available for the issuance of letters of credit. Additionally, up to $50 million of the
Revolving Facility is available to the Company for swing line loans, available on a same-day basis.
Proceeds of the Revolving Facility are available for use by the Borrowers for working capital and other general corporate
purposes, including refinancing existing debt of the Company and its subsidiaries and financing of acquisitions. The Company
may request increases in the lending commitments under the Credit Agreement, but the aggregate lending commitments
pursuant to such increases may not exceed $400 million. The Company has the right, subject to certain conditions set forth in
the Credit Agreement, to designate certain foreign subsidiaries of the Company as borrowers under the Credit Agreement. In
connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the
Credit Agreement. During 2023, the Company repaid $150.0 million of the $200.0 million previously outstanding under the
Term Facility.
Borrowings under the Credit Agreement bear interest, at either an alternate base rate or Term SOFR (or appropriate
alternative currency reference rates) plus, in each case, an applicable margin. Such applicable margin is based on the better of
the Company’s senior, unsecured, long-term debt rating or the Company’s applicable leverage ratio and can range from 0.00%
to 1.275%. Interest is payable (a) in the case of base rate loans, quarterly, and (b) in the case of Term SOFR loans, on the last
day of the applicable interest period selected, or every three months from the effective date of such interest period for interest
periods exceeding three months. The weighted-average interest rate for borrowings outstanding under the Revolving Facility
was 4.22% during 2023 and 3.32% during 2022 for the period following the issuance of the Revolving Facility. The weighted-
average interest rate for borrowings outstanding under the Term Facility was 6.22% during 2023 and 5.83% during 2022 for the
period following the issuance of the Term Facility.
The Credit Agreement requires payment to the lenders of a facility fee based upon the amount of the lenders’ commitments
under the credit facility from time to time, equal to the applicable interest rate times the actual daily amount of the Revolving
Facility. Voluntary prepayments of any loans and voluntary reductions of the unutilized portion of the commitments under the
credit facility are permissible without penalty, subject to break funding payments and minimum notice and minimum reduction
amount requirements.
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The Credit Agreement gives the Company the option to enter into a future environmental, social and governance
amendment by which pricing may be adjusted pursuant to the Company’s performance measured against certain key
performance indicators agreed by the Company and BofA Securities, Inc., as sustainability coordinator.
At December 31, 2023, there was $81.0 million outstanding under the Revolving Facility and $3.4 million of outstanding
letters of credit, resulting in a net available borrowing capacity under the Revolving Facility of approximately $715.6 million.
Senior Notes
On June 13, 2023, the Company completed a private placement of $100.0 million aggregate principal amount of 5.13%
Senior Notes due June 13, 2028 pursuant to a Note Purchase and Master Note Agreement, dated as of June 13, 2023, among the
Company, NYL Investors LLC (“New York Life”) and certain affiliates of New York Life identified as Purchasers of the
5.13% Senior Notes therein. The 5.13% Senior Notes are unsecured obligations of the Company and rank pari passu in right of
payment with all of the Company’s other unsecured, unsubordinated debt. The Company used the proceeds from the 5.13%
Senior Notes issuance to repay the 3.20% Senior Notes due June 13, 2023.
Inclusive of the 5.13% Senior Notes, at December 31, 2023, the Company has $1.2 billion in senior notes outstanding at
various interest rates detailed in the table above (the “Senior Notes”). Interest on the Senior Notes is payable semi-annually in
arrears during the second and fourth quarters of the year. The Senior Notes are unsecured obligations of the Company and rank
pari passu in right of payment with all of the Company’s other unsecured, unsubordinated debt. Subject to the terms of the
respective indenture, the Company may redeem all or a portion of the Senior Notes at any time prior to maturity at the
redemption prices set forth in the indenture. The terms of the 2.625% Senior Notes and the 3.00% Senior Notes also require the
Company to make an offer to repurchase the 2.625% Senior Notes and the 3.00% Senior Notes upon a change of control
triggering event (as defined in the indenture) at a price equal to 101% of the principal amount plus accrued and unpaid interest,
if any. The terms of the 3.37% Senior Notes and the 5.13% Senior Notes also require the Company to make an offer to
repurchase the 3.37% Senior Notes and the 5.13% Senior Notes upon a change of control (as defined in the note purchase
agreement) of the Company at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any.
Covenants
There are two key financial covenants that the Company is required to maintain in connection with the Credit Agreement and
the Senior Notes, excluding the 3.00% Senior Notes and the 2.625% Senior Notes which have no financial covenants. Those
two covenants include a minimum interest coverage ratio of 3.0 to 1 and a maximum leverage ratio of 3.50 to 1, which is the
ratio of the Company’s consolidated total debt to its consolidated EBITDA, both of which are tested quarterly and in the case of
the leverage ratio, there is an option to increase the ratio to 4.00 for 12 months in connection with certain acquisitions. While
there are no financial covenants relating to the 3.00% Senior Notes and the 2.625% Senior Notes, they are subject to cross-
default provisions. At December 31, 2023, the Company was in compliance with all covenants under our borrowing
arrangements.
Total borrowings at December 31, 2023 have scheduled maturities as follows:
Maturity of Borrowings
2024
2025
2026
2027
2028
Thereafter
Total borrowings
$
$
0.6
100.9
0.5
131.3
100.0
1,000.0
1,333.3
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8. Fair Value Measurements
ASC 820, Fair Value Measurements and Disclosures, defines fair value, provides guidance for measuring fair value and
requires certain disclosures. This standard discusses valuation techniques, such as the market approach (comparable market
prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service
capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
•
•
•
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These
include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets
or liabilities in markets that are not active.
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
The following table summarizes the basis used to measure the Company’s financial assets (liabilities) at fair value on a
recurring basis in the balance sheets at December 31, 2023 and 2022:
Trading securities - mutual funds held in nonqualified SERP(1)
Available-for-sale securities - equities(2)
Basis of Fair Value Measurements
December 31, 2023
December 31, 2022
Level 1
Level 1
$
10.5 $
4.4
7.5
—
(1) The Supplemental Executive Retirement Plan (“SERP”) investment assets are offset by a SERP liability which represents
the Company’s obligation to distribute SERP funds to participants.
(2) At December 31, 2023, the securities are included in Other current assets on the Company’s Consolidated Balance
Sheets and are available for overnight cash settlement, if necessary, to fund current operations.
There were no transfers of assets or liabilities between Level 1 and Level 2 in 2023 or 2022.
The carrying values of the Company’s cash and cash equivalents, accounts receivable, marketable securities, accounts
payable and accrued expenses approximate fair value because of the short term nature of these instruments.
The following table provides the fair value of the outstanding indebtedness described in Note 7, which is based on quoted
market prices and current market rates for debt with similar credit risk and maturity, as well as the carrying value. These fair
value measurements are classified as Level 2 within the fair value hierarchy since they are determined based upon significant
inputs observable in the market, including interest rates on recent financing transactions to entities with a credit rating similar to
the Company’s rating.
December 31, 2023
December 31, 2022
Total Borrowings, less unaccreted debt discount
$
1,203.5 $
1,332.2 $
9. Leases
Fair Value
Carrying Amount
Fair Value
1,328.7 $
Carrying Amount
1,476.6
The Company has commitments under operating leases for certain office facilities, warehouses, manufacturing plants,
equipment (which includes both office and plant equipment) and vehicles used in its operations. Leases with an initial term of
12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a
straight-line basis over the lease term.
Certain leases include one or more options to renew. The exercise of lease renewal options is at the Company’s sole
discretion. The Company does not include renewal periods in any of the leases’ terms until the renewal is executed as they are
generally not reasonably certain of being exercised. The Company does not have any material purchase options.
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Certain of the Company’s lease agreements contain provisions for future rent increases or have rental payments that are
adjusted periodically for inflation or based on usage. The Company’s lease agreements do not contain any material residual
value guarantees or material restrictive covenants.
The Company does not have any significant leases that have not yet commenced.
Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 was as follows:
Balance Sheet Caption
December 31, 2023
December 31, 2022
Right-of-Use (“ROU”) Assets:
Building ROU assets - net
Equipment ROU assets - net
Total ROU assets - net
Lease Liabilities:
Current lease liabilities
Noncurrent lease liabilities
Total lease liabilities
Other noncurrent assets
Other noncurrent assets
Accrued expenses
Other noncurrent liabilities
$
$
$
$
110.7 $
7.6
118.3 $
22.0 $
98.1
120.1 $
The components of lease cost for the years ended December 31, 2023, 2022 and 2021 were as follows:
Fixed lease cost (1)
Variable lease cost
Total lease expense
(1) Includes short-term leases, which are immaterial.
2023
2022
2021
$
$
33.0 $
2.7
35.7 $
30.8 $
2.3
33.1 $
104.4
5.6
110.0
21.6
96.6
118.2
31.5
2.3
33.8
Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 was as
follows:
Cash paid for amounts included in the measurement of lease liabilities
$
Right-of-use assets obtained in exchange for new lease liabilities
2023
2022
2021
(In millions)
33.6 $
29.0
31.7 $
19.0
31.2
16.0
Other supplemental information related to leases as of December 31, 2023 and 2022 was as follows:
Lease Term and Discount Rate
Weighted-average remaining lease term (years):
Building and equipment
Vehicles
Weighted-average discount rate:
Building and equipment
Vehicles
December 31, 2023
December 31, 2022
7.00
2.63
3.71%
3.43%
7.43
2.14
3.41%
1.70%
The Company uses its incremental borrowing rate to determine the present value of the lease payments.
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Total lease liabilities at December 31, 2023 have scheduled maturities as follows:
Maturity of Lease Liabilities
2024
2025
2026
2027
2028
Thereafter
Total lease payments
Less: Imputed interest
Present value of lease liabilities
$
$
20.6
23.3
20.7
15.9
13.5
39.8
133.8
(13.7)
120.1
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10. Commitments and Contingencies
Warranty costs are provided for at the time of sale. The warranty provision is based on historical costs and adjusted for
specific known claims. A rollforward of the warranty reserve is as follows:
Beginning balance, January 1
Provision for warranties
Claim settlements
Other adjustments, including acquisitions, divestitures and foreign
currency translation
Ending balance, December 31
2023
2022
2021
$
$
8.1 $
5.8
(4.7)
(0.1)
9.1 $
7.6 $
3.0
(4.1)
1.6
8.1 $
7.4
3.4
(3.8)
0.6
7.6
The Company and certain of its subsidiaries are involved in pending and threatened legal, regulatory and other proceedings
arising in the ordinary course of business. These proceedings may pertain to matters such as product liability or contract
disputes, and may also involve governmental inquiries, inspections, audits or investigations relating to issues such as tax
matters, intellectual property, environmental, health and safety issues, governmental regulations, employment and other matters.
Although the results of such legal proceedings cannot be predicted with certainty, the Company believes that the ultimate
disposition of these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s business,
financial condition, results of operations or cash flows.
11. Share Repurchases
On March 17, 2020, the Company’s Board of Directors approved an increase of $500.0 million in the authorized level of
repurchases of common stock. This approval is in addition to the prior repurchase authorizations of the Board of Directors of
$300.0 million on December 1, 2015. These authorizations have no expiration date. During 2023, the Company repurchased a
total of 124,600 shares at a cost of $24.2 million. During 2022, the Company repurchased a total of 795,423 shares at a cost of
$148.1 million. There were no share repurchases during 2021. As of December 31, 2023, the amount of share repurchase
authorization remaining was $539.7 million.
12. Income Taxes
Pretax income for 2023, 2022 and 2021 was taxed in the following jurisdictions:
U.S.
Foreign
Total
2023
2022
2021
$
$
534.1 $
226.2
760.3 $
516.5 $
232.9
749.4 $
350.2
229.6
579.8
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The provision (benefit) for income taxes for 2023, 2022 and 2021 was as follows:
2023
2022
2021
Current
U.S.
State and local
Foreign
Total current
Deferred
U.S.
State and local
Foreign
Total deferred
$
103.8 $
102.8 $
13.7
61.9
179.4
(11.1)
1.7
(5.3)
(14.7)
14.5
63.9
181.2
(12.2)
(1.0)
(5.3)
(18.5)
162.7 $
64.7
11.0
60.9
136.6
(4.1)
(1.4)
(0.6)
(6.1)
130.5
Total provision for income taxes
$
164.7 $
Deferred tax assets (liabilities) at December 31, 2023 and 2022 were:
2023
2022
Allowances and accruals
Employee and retiree benefit plans
Inventories
Foreign tax credit and other carryforwards
Lease liabilities
Right of use assets
Depreciation and amortization
Taxes on undistributed foreign earnings
Other
Total gross deferred tax (liabilities)
Valuation allowance
$
18.8 $
20.9
10.8
14.8
25.8
(24.7)
(322.1)
(21.0)
0.7
(276.0)
(14.4)
Total deferred tax (liabilities), net of valuation allowances
$
(290.4) $
21.1
17.8
12.0
15.0
26.9
(25.9)
(301.3)
(18.4)
5.6
(247.2)
(15.0)
(262.2)
The deferred tax assets and liabilities recognized in the Company’s Consolidated Balance Sheets as of December 31, 2023
and 2022 were:
Noncurrent deferred tax asset - Other noncurrent assets
Noncurrent deferred tax liabilities - Deferred income taxes
Net deferred tax liabilities
2023
2022
$
$
1.5 $
(291.9)
(290.4) $
2.0
(264.2)
(262.2)
The Company had prepaid income taxes, recorded within Other current assets on the Consolidated Balance Sheets, of
$14.3 million and $15.1 million as of December 31, 2023 and 2022, respectively.
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The provision for income taxes differs from the amount calculated by applying the statutory federal income tax rate to
pretax income. The calculated amount and the differences for 2023, 2022 and 2021 are shown in the following table:
Pretax income
Provision for income taxes:
2023
2022
2021
$
760.3
$
749.4
$
579.8
Computed amount at statutory rate of 21%
$
159.7
21.0% $
157.4
21.0% $
121.8
21.0%
State and local income tax (net of federal tax benefit)
Taxes on non-U.S. earnings-net of foreign tax credits
Global Intangible Low-Taxed Income
12.6
10.8
—
1.7%
1.4%
—%
11.4
12.4
2.0
1.5%
1.7%
0.3%
Foreign-Derived Intangible Income Deduction
(11.3)
(1.5%)
(11.9)
(1.6%)
Share-based payments
Other
(2.0)
(5.1)
(0.3%)
(0.6%)
(2.6)
(6.0)
(0.4%)
(0.8%)
8.0
9.2
0.4
(7.5)
(3.5)
2.1
1.4%
1.6%
0.1%
(1.3%)
(0.6%)
0.3%
Total provision for income taxes
$
164.7
21.7% $
162.7
21.7% $
130.5
22.5%
The Company has $54.9 million and $45.3 million of permanently reinvested earnings of non-U.S. subsidiaries as of
December 31, 2023 and 2022, respectively. No deferred U.S. income taxes have been provided on the $54.9 million of earnings
that are considered to be permanently reinvested. The Company does not expect these earnings to incur U.S. taxes when
ultimately repatriated other than potentially U.S. federal, state and local taxes on foreign exchange gains or losses recognized on
the distribution of such earnings. Such distributions could also be subject to additional foreign withholding and foreign income
taxes. The amount of unrecognized deferred income tax liabilities on currently permanently reinvested earnings is estimated to
be $8.2 million and $6.8 million as of December 31, 2023 and 2022, respectively.
During the years ended December 31, 2023, 2022 and 2021, the Company repatriated $134.1 million, $199.9 million and
$116.0 million of foreign earnings, respectively. These actual distributions resulted in no incremental income tax expense other
than tax impacts on foreign exchange gains or losses. These repatriations represent distributions of previously taxed income.
A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2023, 2022 and 2021 is as follows:
Beginning balance January 1
Gross increases for tax positions of prior years
Gross decreases for tax positions of prior years
Settlements
Lapse of statute of limitations
Ending balance December 31
2023
2022
2021
$
— $
0.1 $
—
—
—
—
$
— $
—
—
—
(0.1)
— $
1.1
0.1
(0.3)
(0.2)
(0.6)
0.1
As of December 31, 2023, the Company has no remaining unrecognized tax benefits that would affect the Company’s
effective tax rate. The tax years 2018-2022 remain open to examination by major taxing jurisdictions. Due to the potential
federal, state and foreign examinations, it is reasonably possible that the Company’s gross unrecognized tax benefits balance
may change.
As of December 31, 2023, the Company has minimal deferred tax assets on non-U.S. and U.S. state net operating loss
carryforwards of $0.3 million and $0.6 million, respectively. The entire balance of net operating losses across jurisdictions, the
majority of which relates to acquisitions, is available to be carried forward indefinitely. There is no valuation allowance as it is
more-likely-than-not that the net operating losses will be realized.
As of December 31, 2023, the Company has deferred tax assets on non-U.S. capital loss carryforwards of $3.1 million with
a full valuation allowance. The non-U.S. capital loss can be carried forward indefinitely.
As of December 31, 2023, the Company has deferred tax assets with a full valuation allowance recorded against foreign tax
credit carryforwards for U.S. federal purposes of approximately $10.6 million. The U.S. federal foreign tax credit carryforward
will expire between 2029 and 2033.
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Table of Contents
13. Business Segments and Geographic Information
IDEX has three reportable business segments: FMT, HST and FSDP. When determining these reportable segments, the
Company aggregated operating segments based on their similar economic and operating characteristics.
The FMT segment designs, produces and distributes positive displacement pumps, valves, small volume provers, flow
meters, injectors and other fluid-handling pump modules and systems and provides flow monitoring and other services for the
food, chemical, general industrial, water and wastewater, agriculture and energy industries. FMT application-specific pump and
metering solutions serve a diverse range of end markets, including industrial infrastructure (fossil fuels, refined and alternative
fuels and water and wastewater), energy, chemical processing, agriculture, food and beverage, semiconductor, pulp and paper,
automotive/transportation, plastics and resins, electronics and electrical, construction and mining, pharmaceutical and
biopharmaceutical, machinery and numerous other specialty niche markets.
The HST segment designs, produces and distributes a wide range of precision fluidics, positive displacement pumps,
powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing
solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic
mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and
coatings, laboratory and commercial equipment and precision photonic solutions. HST serves a variety of end markets,
including food and beverage, life sciences, analytical instruments, pharmaceutical and biopharmaceutical, industrial,
semiconductor, automotive/transportation, medical/dental, energy, cosmetics, marine, chemical, wastewater and water
treatment, research and aerospace/defense markets.
The FSDP segment designs, produces and distributes firefighting pumps, valves and controls, rescue tools, lifting bags and
other components and systems for the fire and rescue industry, engineered stainless steel banding and clamping devices used in
a variety of industrial and commercial applications in the automotive, energy and industrial markets and precision equipment
for dispensing, metering and mixing colorants and paints used in a variety of retail and commercial businesses in the paint and
industrial markets around the world.
Information on the Company’s business segments is presented below based on the nature of the products and services
offered. The Company uses Adjusted EBITDA as its principal measure of segment performance. Intersegment sales are
contracted with terms equivalent to those of an arm’s-length transaction.
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Table of Contents
NET SALES
Fluid & Metering Technologies
External customers
Intersegment sales
Total segment sales
Health & Science Technologies
External customers
Intersegment sales
Total segment sales
Fire & Safety/Diversified Products
External customers
Intersegment sales
Total segment sales
Intersegment eliminations
Net sales
ADJUSTED EBITDA
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Segment Adjusted EBITDA
Corporate and other(1)
Adjusted EBITDA
Interest expense
Depreciation
Amortization of intangible assets
Fair value inventory step-up charges
Restructuring expenses and asset impairments
Net impact from the exit of a COVID-19 testing application(2)
Corporate transaction indemnity
Gain on sale of businesses - net
Gains on sales of assets
Credit loss on note receivable from collaborative partner(3)
Loss on early debt redemption
Termination of the U.S. pension plan, net of curtailment
2023
2022
2021
$
1,244.2 $
1,166.2 $
2.9
1,247.1
1,313.5
2.9
1,316.4
716.2
2.6
718.8
1.1
1,167.3
1,336.8
2.4
1,339.2
678.9
0.3
679.2
(8.4)
(3.8)
998.0
0.7
998.7
1,119.0
2.8
1,121.8
647.8
0.1
647.9
(3.6)
$
$
3,273.9 $
3,181.9 $
2,764.8
416.1 $
374.2 $
359.5
208.6
984.2
(84.6)
899.6
(51.7)
(57.2)
(94.9)
(1.6)
(10.9)
—
—
84.7
—
(7.7)
—
—
411.8
183.9
969.9
(85.7)
884.2
(40.7)
(50.7)
(69.0)
(8.5)
(4.5)
1.1
—
34.8
2.7
—
—
—
297.0
355.9
185.7
838.6
(73.2)
765.4
(41.0)
(46.6)
(56.4)
(11.6)
(9.3)
—
(3.5)
—
—
—
(8.6)
(8.6)
Income before income taxes
$
760.3 $
749.4 $
579.8
(1) Corporate expenses that can be identified with a segment have been included in determining segment results. The
remainder is included in Corporate and other.
(2) Represents the acceleration of previously deferred revenue of $17.9 million, net of an impairment charge of
$16.8 million as a result of a customer’s decision to discontinue further investment in commercializing its COVID-19
testing application in the HST segment in 2022 that did not reoccur in 2023. See Note 14 in the Notes to Consolidated
Financial Statements for further detail.
(3) Represents a reserve recorded on an investment with a collaborative partner that may no longer be recoverable. See Note
3 in the Notes to Consolidated Financial Statements for further detail.
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Table of Contents
ASSETS
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Corporate and other
Total assets
DEPRECIATION AND AMORTIZATION OF INTANGIBLE ASSETS
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Corporate and other
Total depreciation and amortization
CAPITAL EXPENDITURES
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Corporate and other
Total capital expenditures
2023
2022
2021
$
1,674.7 $
1,676.9 $
3,262.4
792.6
135.5
2,931.1
771.8
132.1
1,458.8
2,138.3
892.5
427.6
5,865.2 $
5,511.9 $
4,917.2
36.8 $
36.9 $
99.0
15.3
1.0
67.3
15.0
0.5
30.5
56.7
15.3
0.5
152.1 $
119.7 $
103.0
24.2 $
25.3 $
55.1
9.7
0.9
32.0
10.5
0.2
$
89.9 $
68.0 $
21.0
41.5
9.5
0.7
72.7
$
$
$
$
Information about the Company’s long-lived assets in different geographical regions for the years ended December 31,
2023, 2022 and 2021 is shown below.
LONG-LIVED ASSETS — PROPERTY, PLANT AND EQUIPMENT
U.S.
North America, excluding U.S.
Europe
Asia
Other(1)
2023
2022
2021
$
219.2 $
191.7 $
188.3
24.0
138.4
48.3
0.4
4.7
136.8
48.8
0.1
5.4
98.9
34.5
0.2
Total long-lived assets - net
$
430.3 $
382.1 $
327.3
(1) Other includes: South America, Middle East, Australia and Africa.
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14. Restructuring Expenses and Asset Impairments
From time to time, the Company incurs expenses to facilitate long-term sustainable growth through cost reduction actions,
consisting of employee reductions, facility rationalization and contract termination costs. These costs include severance costs,
exit costs and asset impairments and are included in Restructuring expenses and asset impairments in the Consolidated
Statements of Income. Severance costs primarily consist of severance benefits through payroll continuation, COBRA subsidies,
outplacement services, conditional separation costs and employer tax liabilities, while exit costs primarily consist of lease exit
and contract termination costs.
2023 Initiative
During the year ended December 31, 2023, the Company incurred severance costs related to employee reductions in
conjunction with cost mitigation efforts as a result of current market conditions, contract termination costs and asset
impairments.
Pre-tax Restructuring expenses and asset impairments by segment for the 2023 initiative were as follows:
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Corporate/Other
Total restructuring costs
2022 Initiative
Severance Costs
Exit Costs
Asset
Impairments
Total
$
$
1.5 $
0.6 $
0.8 $
6.4
0.7
0.5
0.2
0.2
—
—
—
—
2.9
6.6
0.9
0.5
9.1 $
1.0 $
0.8 $
10.9
During the year ended December 31, 2022, the restructuring costs incurred by the Company primarily related to asset
impairments. In addition, the Company also incurred severance costs related to employee reductions.
In the second quarter of 2020, the Company engaged in the development of a COVID-19 testing application with a
customer at one of the Company’s businesses in the HST segment. As part of this contract, the customer fully funded the
$28.7 million investment needed to complete the development and production of microfluidic cartridges during 2020 and 2021.
The costs incurred by the Company were primarily recorded as Property, plant and equipment – net in the Consolidated Balance
Sheets and were being depreciated over the expected life of the assets, while the reimbursement was recorded as Deferred
revenue in the Consolidated Balance Sheets and was being recognized as units were shipped.
In the third quarter of 2022, the Company was informed by the customer of its decision to discontinue further investment in
commercializing its COVID-19 testing application. This event was deemed a triggering event, which required an interim
impairment test be performed on the property, plant and equipment related to this contract, resulting in an impairment charge of
$16.8 million that was recorded as Restructuring expenses and asset impairments in the Consolidated Statements of Income
during the year ended December 31, 2022. In addition, the Company accelerated previously deferred revenue of $17.9 million
related to units that are no longer expected to be shipped and recorded it as Net sales in the Consolidated Statements of Income
during the year ended December 31, 2022.
Pre-tax Restructuring expenses and asset impairments by segment for the 2022 initiative were as follows:
Severance Costs
Exit Costs
Asset
Impairments
Total
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Corporate/Other
Total restructuring costs
1.9 $
0.3 $
0.5 $
1.2
1.7
0.3
—
—
—
16.8
0.1
—
5.1 $
0.3 $
17.4 $
2.7
18.0
1.8
0.3
22.8
$
$
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2021 Initiative
During the year ended December 31, 2021, the Company incurred severance costs related to employee reductions. In
addition, the Company consolidated certain facilities within the FMT segment which resulted in asset impairments of $0.8
million related to property, plant and equipment that was not relocated to the new locations.
Pre-tax restructuring expenses and asset impairments by segment for the 2021 initiative were as follows:
Fluid & Metering Technologies
Health & Science Technologies
Fire & Safety/Diversified Products
Corporate/Other
Total restructuring costs
Severance Costs
Exit Costs
Asset
Impairments
Total
$
$
3.7 $
— $
0.8 $
1.7
0.5
2.6
—
—
—
—
—
—
8.5 $
— $
0.8 $
4.5
1.7
0.5
2.6
9.3
Restructuring accruals reflected in Accrued expenses in the Company’s Consolidated Balance Sheets are as follows:
Balance at January 1, 2022
Restructuring expenses(1)
Payments, utilization and other
Balance at December 31, 2022
Restructuring expenses(2)
Payments, utilization and other
Balance at December 31, 2023
Restructuring
Initiatives
2.8
5.4
(6.8)
1.4
10.1
(9.4)
2.1
$
$
(1) Excludes $17.4 million of asset impairments related to property, plant and equipment.
(2) Excludes $0.8 million of asset impairments related to property, plant and equipment.
15. Share-Based Compensation
The Company maintains two share-based compensation plans for executives, non-employee directors and certain key
employees that authorize the granting of restricted stock, performance share units and stock options and other types of awards
consistent with the purpose of the plans. The number of shares authorized for issuance under the Company’s plans as of
December 31, 2023 totaled 15.6 million, of which 1.7 million shares were available for future issuance.
The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Board of
Directors based on the recommendation from the Compensation Committee.
The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite
service period for the entire award. Classification of stock compensation cost within the Consolidated Statements of Income is
consistent with the classification of cash compensation for the same employees.
Stock Options
Stock options granted under the Company’s plans are generally non-qualified and are granted with an exercise price equal
to the market price of the Company’s stock on the date of grant. The fair value of each option grant was estimated on the date of
the grant using the Binomial lattice option pricing model (for options granted before March 2021) or the Black Scholes
valuation model (for options granted after February 2021). The adoption of the Black Scholes model in 2021 was driven by a
review of option exercise history, which more closely aligned with the methodology of the Black Scholes model. Stock options
generally vest ratably over four years, with vesting beginning one year from the date of grant, and generally expire 10 years
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from the date of grant. The service period for certain retiree eligible participants is accelerated. Weighted average stock option
fair values and assumptions for the years ended December 31, 2023, 2022, and 2021 are disclosed below:
Weighted average fair value of grants
Dividend yield
Volatility
Risk-free interest rate
Expected life (in years)
The assumptions are as follows:
Years Ended December 31,
2023
$59.77
1.09%
27.14%
4.15%
4.50
2022
$42.66
1.14%
25.23%
2.01%
4.90
2021
$38.88
1.01%
23.78%
0.12% - 1.54%
5.70
•
•
•
•
The Company estimated volatility using its historical share price performance over the contractual term of the option
(for the Binomial lattice option pricing model) or over the expected life of the option (for the Black Scholes valuation
model).
The Company uses historical data to estimate the expected life of the option. The expected life assumption for options
granted before March 2021 is an output of the Binomial lattice option pricing model, which incorporates vesting
provisions, rate of voluntary exercise and rate of post-vesting termination over the contractual life of the option to
define expected employee behavior. The expected life assumption for options granted after March 2021 is based on
IDEX’s own exercise and cancellation history, adjusted for current vesting schedules.
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the
contractual life of the option (for the Binomial lattice option pricing model) or commensurate with the expected life of
the option (for the Black Scholes valuation model). For options granted before March 2021, the Company presents the
range of risk-free one-year forward rates, derived from the U.S. treasury yield curve, utilized in the Binomial lattice
option pricing model. For options granted after March 2021, the Company presents the spot rate used in the Black
Scholes valuation model.
The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected
dividend yield for periods within the contractual life of the option.
A summary of the Company’s stock option activity as of December 31, 2023, and changes during the year ended December
31, 2023, are presented in the following table:
Stock Options
Outstanding at January 1, 2023
Granted
Exercised
Forfeited
Outstanding at December 31, 2023
Vested and expected to vest at December 31, 2023
Exercisable at December 31, 2023
Weighted
Average
Price
Weighted-Average
Remaining
Contractual Term
(years)
Aggregate
Intrinsic
Value
Shares
1,015,572 $ 161.45
222.52
246,195
(196,050)
(82,450)
133.90
201.67
983,267 $ 178.86
954,222 $ 177.96
497,612 $ 153.99
6.94 $
67.9
6.88 $
6.82 $
5.47 $
39.3
38.9
31.5
The intrinsic value for stock options outstanding and exercisable is defined as the difference between the market value of
the Company’s common stock as of the end of the period and the grant price. The total intrinsic value of options exercised in
2023, 2022 and 2021 was $14.9 million, $17.4 million and $21.4 million, respectively. In 2023, 2022 and 2021, cash received
from options exercised was $26.3 million, $19.3 million and $19.7 million, respectively, while the actual tax benefit realized for
the tax deductions from stock options exercised totaled $3.1 million, $3.7 million and $4.5 million, respectively.
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Total compensation cost for stock options is recorded in the Consolidated Statements of Income as follows:
Cost of sales
Selling, general and administrative expenses(1)
Total expense before income taxes
Income tax benefit
Total expense after income taxes
Years Ended December 31,
2023
2022
2021
0.6 $
0.5 $
9.3
9.9
(1.0)
8.9 $
8.7
9.2
(0.8)
8.4 $
0.5
8.0
8.5
(0.8)
7.7
$
$
(1) The year ended December 31, 2023 includes $0.5 million of lower expense due to executive forfeitures, largely offset by
$0.4 million of higher expense due to timing of accelerated stock compensation costs for retiree eligible participants compared
with 2022.
As of December 31, 2023, there was $9.4 million of total unrecognized compensation cost related to stock options that is
expected to be recognized over a weighted-average period of 1.4 years.
Restricted Stock
Restricted stock awards generally cliff vest after three years for employees and non-employee directors. The service period
for certain retiree eligible participants is accelerated. Unvested restricted stock carries dividend and voting rights and the sale of
the shares is restricted prior to the date of vesting. Dividends are paid on restricted stock awards and their fair value is equal to
the market price of the Company’s stock at the date of the grant. A summary of the Company’s restricted stock activity as of
December 31, 2023, and changes during the year ended December 31, 2023, are presented in the following table:
Restricted Stock
Unvested at January 1, 2023
Granted
Vested
Forfeited
Unvested at December 31, 2023
Shares
Weighted-Average
Grant Date Fair
Value
104,382 $
46,660
(24,076)
(14,075)
112,891 $
179.45
217.01
175.42
201.92
193.03
Total compensation cost for restricted stock is recorded in the Consolidated Statements of Income as follows:
Cost of sales
Selling, general and administrative expenses(1)
Total expense before income taxes
Income tax benefit
Total expense after income taxes
Years Ended December 31,
2023
2022
2021
0.5 $
0.3 $
5.2
5.7
(1.2)
4.5 $
6.4
6.7
(1.2)
5.5 $
0.4
5.1
5.5
(1.1)
4.4
$
$
(1) The year ended December 31, 2023 includes $0.5 million of lower expense due to timing of accelerated stock
compensation costs for retiree eligible participants compared with 2022.
As of December 31, 2023, there was $6.9 million of total unrecognized compensation cost related to restricted stock that is
expected to be recognized over a weighted-average period of 1.1 years.
Cash-Settled Restricted Stock
The Company also maintains a cash-settled share based compensation plan for certain employees. Cash-settled restricted
stock awards generally cliff vest after three years. The service period for certain retiree eligible participants is accelerated.
Cash-settled restricted stock awards are recorded at fair value on a quarterly basis using the market price of the Company’s
stock on the last day of the quarter. Dividend equivalents are paid on certain cash-settled restricted stock awards. A summary of
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the Company’s unvested cash-settled restricted stock activity as of December 31, 2023, and changes during the year ended
December 31, 2023, are presented in the following table:
Cash-Settled Restricted Stock
Unvested at January 1, 2023
Granted
Vested
Forfeited
Unvested at December 31, 2023
Shares
Weighted-Average
Fair Value
57,356 $
20,940
(16,071)
(5,570)
56,655 $
228.33
225.02
228.86
217.11
217.11
Total compensation cost for cash-settled restricted stock is recorded in the Consolidated Statements of Income as follows:
Cost of sales
Selling, general and administrative expenses
Total expense before income taxes
Income tax benefit
Total expense after income taxes
Years Ended December 31,
2023
2022
2021
0.3 $
0.1 $
3.1
3.4
(0.2)
3.2 $
2.6
2.7
(0.2)
2.5 $
0.7
4.3
5.0
(0.4)
4.6
$
$
At December 31, 2023 and 2022, the Company has accrued $4.2 million and $4.8 million, respectively, for cash-settled
restricted stock in Accrued expenses in the Consolidated Balance Sheets and has accrued $2.9 million and $2.8 million,
respectively, for cash-settled restricted stock in Other noncurrent liabilities in the Consolidated Balance Sheets.
As of December 31, 2023, there was $4.1 million of total unrecognized compensation cost related to cash-settled restricted
stock that is expected to be recognized over a weighted-average period of 1.0 year.
Performance Share Units
Beginning in 2013, the Company granted performance share units to selected key employees that may be earned based on
IDEX total shareholder return over the three-year period following the date of grant. Performance share units are expected to be
made annually and are paid out at the end of a three-year period based on the Company’s performance. Performance is
measured by determining the percentile rank of the total shareholder return of IDEX common stock in relation to the total
shareholder return of companies in the S&P 500 Index for the three-year period following the date of grant. The payment of
awards following the three-year award period will be based on performance achieved in accordance with the scale set forth in
the plan agreement and may range from 0 percent to 250 percent of the initial grant. A target payout of 100 percent is earned if
total shareholder return is equal to the 50th percentile of the peer group. Performance share units earn dividend equivalents for
the award period, which will be paid to participants with the award payout at the end of the period based on the actual number
of performance share units that are earned. Payments made at the end of the award period will be in the form of stock for
performance share units and will be in cash for dividend equivalents. The performance share units are market condition awards,
have been assessed at fair value on the date of grant using a Monte Carlo simulation model and are expensed ratably over the
three-year term of the awards.
Weighted average performance share unit fair values and assumptions for the years ended December 31, 2023, 2022, and
2021 are disclosed below:
Weighted average fair value of grants
Dividend yield
Volatility
Risk-free interest rate
Expected life (in years)
Years Ended December 31,
2023
$308.18
—%
27.00%
4.37%
2.94
2022
$235.54
—%
28.09%
1.73%
2.93
2021
$247.49
—%
28.60%
0.33%
2.93
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The assumptions are as follows:
•
•
•
•
The Company estimated volatility using its historical share price performance over the remaining performance period
as of the grant date.
The Company uses a Monte Carlo simulation model that uses an expected life commensurate with the performance
period. As a result, the expected life of the performance share units was assumed to be the period from the grant date
to the end of the performance period.
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term
commensurate with the remaining performance period.
Total Shareholder Return is determined assuming that dividends are reinvested in the issuing entity over the
performance period, which is mathematically equivalent to utilizing a 0% dividend yield.
A summary of the Company’s performance share unit activity as of December 31, 2023, and changes during the year ended
December 31, 2023, are presented in the following table:
Performance Share Units
Unvested at January 1, 2023
Granted
Vested
Forfeited
Unvested at December 31, 2023
Weighted-
Average
Grant Date Fair
Value
Shares
70,915 $
28,030
(18,105)
(13,385)
67,455 $
236.66
308.18
226.86
263.06
265.15
The performance period for the 2021 grants ended as of January 31, 2024. The 2021 grants achieved a 50% payout factor
and the Company issued 9,606 common shares in February 2024 for awards that vested in 2024.
Total compensation cost for performance share units is recorded in the Consolidated Statements of Income as follows:
Cost of goods sold
Selling, general and administrative expenses(1)
Total expense before income taxes
Income tax benefit
Total expense after income taxes
Years Ended December 31,
2023
2022
2021
— $
— $
6.0
6.0
(0.3)
5.7 $
6.0
6.0
(0.2)
5.8 $
—
6.4
6.4
(0.3)
6.1
$
$
(1) The year ended December 31, 2023 includes $0.8 million of higher expense due to timing of accelerated stock
compensation costs for retiree eligible participant, offset by $0.8 million of lower expense due to executive forfeitures
compared with 2022.
As of December 31, 2023, there was $2.5 million of total unrecognized compensation cost related to performance share
units that is expected to be recognized over a weighted-average period of 1.0 year.
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16. Other Comprehensive Income (Loss)
The components of Other comprehensive income (loss) are as follows:
Cumulative translation adjustment
$
87.8 $
— $
87.8 $
(74.9) $
— $
(74.9)
For the Year Ended December 31, 2023
For the Year Ended December 31, 2022
Pre-tax
Tax
Net of tax
Pre-tax
Tax
Net of tax
Pension and other postretirement adjustments
Net (loss) gain arising during the year
Amortization and settlement gain
Pension and other postretirement adjustments
Reclassification adjustments for derivatives
(8.2)
(1.5)
(9.7)
—
1.9
0.4
2.3
—
(6.3)
(1.1)
(7.4)
—
24.6
0.5
25.1
—
(6.7)
(0.1)
(6.8)
—
17.9
0.4
18.3
—
Total other comprehensive income (loss)
$
78.1 $
2.3 $
80.4 $
(49.8) $
(6.8) $
(56.6)
Cumulative translation adjustment
Pension and other postretirement adjustments
Net gain (loss) arising during the year
Amortization and settlement loss, net of
curtailment gain
Pension and other postretirement adjustments
Reclassification adjustments for derivatives(1)
Total other comprehensive (loss)
For the Year Ended December 31, 2021
Pre-tax
Tax
Net of tax
$
(75.6) $
— $
(75.6)
12.0
10.3
22.3
3.3
(2.9)
9.1
(2.4)
(5.3)
(0.8)
7.9
17.0
2.5
$
(50.0) $
(6.1) $
(56.1)
(1) Includes the acceleration of $1.3 million of the remaining accumulated other comprehensive loss resulting from the cash
settlement of a forward starting interest rate exchange agreement, which was cash settled in 2011. The amounts were
recognized in Other expense (income) - net in the Consolidated Statements of Income during the year ended December 31,
2021 in connection with the early redemption of the related debt instrument.
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The amounts reclassified from Accumulated other comprehensive loss to net income are summarized as follows:
Pension and other postretirement plans:
Amortization of actuarial (gains) losses
and prior service costs
Settlement (gain) loss recognized
Curtailment gain recognized
Total before tax
Provision for income taxes
Total net of tax
Derivatives:
Reclassification adjustments(1)
Total before tax
Provision for income taxes
Total net of tax
$
$
For the Year Ended December 31,
2023
2022
2021
Income Statement Caption
$
(1.4) $
0.5 $
1.8 Other expense (income) - net
(0.1)
—
(1.5)
0.4
—
—
0.5
(0.1)
10.5 Other expense (income) - net
(2.0) Other expense (income) - net
10.3
(2.4)
(1.1) $
0.4 $
7.9
— $
— $
—
—
—
—
$
— $
— $
Interest expense
3.3
3.3
(0.8)
2.5
(1) Includes the acceleration of $1.3 million of the remaining accumulated other comprehensive loss resulting from the cash
settlement of a forward starting interest rate exchange agreement, which was cash settled in 2011. The amounts were
recognized in Other expense (income) - net in the Consolidated Statements of Income during the year ended December 31,
2021 in connection with the early redemption of the related debt instrument.
17. Retirement Benefits
The Company sponsors several qualified and nonqualified defined benefit and defined contribution pension plans as well
as other post-retirement plans for its employees. The Company uses a measurement date of December 31 for its defined benefit
pension plans and post-retirement medical plans. The Company employs the measurement date provisions of ASC 715,
Compensation-Retirement Benefits, which require the measurement date of plan assets and liabilities to coincide with the
sponsor’s year end.
During the year ended December 31, 2021, the Company settled its remaining obligations under the IDEX Corporation
Retirement Plan (“Plan”), a U.S. defined benefit plan which was terminated in May 2020, through a combination of lump-sum
payments to eligible participants who elected them, and through the purchase of annuities from Legal and General, an A rated
third-party insurer. The Company recognized a net loss of $9.7 million, which was recorded within Other expense (income) -
net. The net loss consisted of $10.7 million related to previously deferred pension related costs, partially offset by $1.0 million
related to an increase in plan assets remaining after the settlement.
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The following table provides a reconciliation of the changes in the benefit obligation and fair value of plan assets over the
two-year period ended December 31, 2023 and a statement of the funded status at December 31 for both years.
Pension Benefits
Other Benefits
2023
2022
2023
2022
U.S.
Non-U.S.
U.S.
Non-U.S.
CHANGE IN BENEFIT OBLIGATION
Obligation at January 1
$
8.3 $
75.7 $
10.6 $
104.3 $
16.4 $
23.6
Service cost
Interest cost
Plan amendments
Benefits paid
Actuarial loss (gain)
Currency translation
Settlements
Curtailments
Acquisition/Divestiture
Other
Obligation at December 31
CHANGE IN PLAN ASSETS
Fair value of plan assets at
January 1
Actual return on plan assets
$
$
Employer contributions
Benefits paid
Currency translation
Settlements
Acquisition/Divestiture
Other
Fair value of plan assets at
December 31
Funded status at December 31
0.1
0.4
—
1.2
2.8
—
(0.7)
(1.4)
0.4
—
—
—
—
0.4
6.2
5.2
(3.0)
—
1.0
0.8
0.1
0.2
—
(0.6)
(2.0)
—
—
—
—
—
1.8
1.0
—
(0.8)
(27.8)
(6.1)
(0.1)
—
2.7
0.7
0.4
0.8
—
(0.9)
0.5
—
—
—
—
—
0.7
0.5
—
(1.0)
(7.3)
(0.1)
—
—
—
—
8.9 $
88.5 $
8.3 $
75.7 $
17.2 $
16.4
4.7 $
(0.3)
0.4
(0.7)
—
—
—
0.2
37.8 $
0.9
3.3
(1.4)
3.2
(3.0)
—
0.9
17.0 $
(2.0)
0.4
(0.6)
—
—
—
(10.1)
46.1 $
(10.5)
2.8
(0.8)
(2.5)
(0.1)
2.0
0.8
4.7 $
(3.6) $
37.8 $
(37.9) $
— $
—
0.9
—
—
1.0
(0.9)
(1.0)
—
—
—
—
— $
—
—
—
—
—
(17.2) $
(16.4)
(46.8) $
$
COMPONENTS ON THE CONSOLIDATED BALANCE SHEETS
(4.6) $
$
4.3 $
41.7 $
Other current assets
Other noncurrent assets
Current liabilities
Other noncurrent liabilities
Net asset (liability) at
December 31
$
— $
—
(0.7)
(3.9)
— $
1.5
(1.7)
(46.6)
— $
—
(0.7)
(2.9)
— $
0.5
(1.5)
(36.9)
— $
—
(1.1)
(16.1)
—
—
(1.1)
(15.3)
$
(4.6) $
(46.8) $
(3.6) $
(37.9) $
(17.2) $
(16.4)
The pension benefits actuarial loss in 2023 was primarily driven by the decrease in the discount rates from 2022 to 2023.
The increase in the Eurozone inflation rate contributed further to the reported Non-U.S. pension actuarial loss.
The other benefits actuarial loss in 2023 was primarily driven by the decrease in the discount rates from 2022 to 2023 with
additional losses from the updated medical trend assumptions for the U.S. plans, partially offset by gains from updated
participants data.
The accumulated benefit obligation for all defined benefit pension plans was $94.6 million and $81.9 million at December
31, 2023 and 2022, respectively.
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The weighted average assumptions used in the measurement of the Company’s benefit obligation at December 31, 2023
and 2022 were as follows:
Discount rate
Rate of compensation increase
Cash balance interest credit rate
U.S. Plans
Non-U.S. Plans
Other Benefits
2023
2022
2023
2022
2023
2022
4.93%
5.17%
—%
—%
—%
—%
3.01%
2.55%
1.43%
3.75%
2.44%
2.42%
4.90%
5.21%
—%
—%
—%
—%
The pretax amounts recognized in Accumulated other comprehensive loss on the Consolidated Balance Sheets as of
December 31, 2023 and 2022 were as follows:
Pension Benefits
Other Benefits
2023
2022
2023
2022
U.S.
Non-U.S.
U.S.
Non-U.S.
Prior service cost (credit)
Net loss (gain)
Total
$
$
0.2 $
(0.4) $
2.7
2.9 $
1.8
1.4 $
0.1 $
1.9
2.0 $
(0.5) $
(5.5)
(6.0) $
(0.3) $
(8.6)
(8.9) $
(0.4)
(9.9)
(10.3)
The components of the net periodic cost (benefit) for the plans in 2023, 2022 and 2021 are as follows:
2023
Pension Benefits
2022
2021
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
0.1 $
0.4
(0.2)
—
0.1
$
0.4 $
Service cost
Interest cost
$
Expected return on plan assets
Settlement (gain) loss
recognized
Net amortization
Net periodic cost
Service cost
Interest cost
Curtailment gain recognized
Net amortization
Net periodic cost (benefit)
1.2 $
2.8
(1.6)
(0.1)
(0.6)
1.7 $
0.1 $
0.2
(0.2)
—
0.3
1.8 $
1.0
(1.3)
—
0.6
0.1 $
0.3
(0.9)
10.5
0.4
0.4 $
2.1 $
10.4 $
Other Benefits
2023
2022
2021
0.4 $
0.7 $
0.8
—
(0.9)
0.3 $
0.5
—
(0.5)
0.7 $
$
$
2.0
0.7
(1.0)
—
2.1
3.8
0.7
0.4
(2.0)
(0.6)
(1.5)
The Company recognizes the service cost component in both Cost of sales and Selling, general and administrative expenses
in the Consolidated Statements of Income depending on the functional area of the underlying employees and the interest cost,
expected return on plan assets and net amortization components in Other expense (income) - net in the Consolidated Statements
of Income.
The assumptions used in determining the net periodic cost (benefit) were as follows:
U.S. Plans
Non-U.S. Plans
2023
2022
2021
2023
2022
2021
Discount rate
Expected return on plan assets
Rate of compensation increase
5.17%
4.65%
—%
2.52%
2.63%
—%
89
2.14%
2.40%
—%
3.75%
4.17%
2.44%
1.25%
2.87%
2.31%
0.95%
2.41%
2.32%
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Discount rate
Expected return on plan assets
Rate of compensation increase
Other Benefits
2023
2022
2021
5.21%
—%
—%
2.70%
—%
—%
2.20%
—%
—%
The pretax change recognized in Accumulated other comprehensive loss on the Consolidated Balance Sheet in 2023 is as
follows:
Net loss in current year
Prior service cost
Amortization of prior service credit
Amortization of net loss (gain)
Exchange rate effect on amounts in other comprehensive income
Total
Pension Benefits
U.S.
Non-U.S.
Other
Benefits
$
(0.9) $
(0.1)
—
0.1
—
(6.9) $
—
(0.1)
(0.5)
0.1
$
(0.9) $
(7.4) $
(0.4)
—
(0.1)
(0.9)
—
(1.4)
The discount rates for the Company’s plans are derived by matching the plan’s cash flows to a yield curve that provides the
equivalent yields on zero-coupon bonds for each maturity. The discount rate selected is the rate that produces the same present
value of cash flows.
In selecting the expected rate of return on plan assets, the Company considers the historical returns and expected returns on
plan assets. The expected returns are evaluated using asset return class, variance and correlation assumptions based on the
plan’s target asset allocation and current market conditions.
Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants.
Gains and losses in excess of 10% of the greater of the benefit obligation or the market value of assets are amortized over the
average remaining service period of active participants.
Costs of defined contribution plans were $16.8 million, $16.1 million and $12.8 million for 2023, 2022 and 2021,
respectively.
The Company, through its subsidiaries, participates in a multi-employer pension plan covering approximately 211
participants under U.S. collective bargaining agreements. None of these plans are considered individually significant to the
Company as contributions to these plans totaled $0.9 million, $0.8 million, and $1.0 million for 2023, 2022 and 2021,
respectively.
For measurement purposes, a 6.23% weighted average annual rate of increase in the per capita cost of covered health care
benefits was assumed for 2023. The rate was assumed to decrease gradually each year to a rate of 4.00% for 2040, and remain
at that level thereafter.
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Table of Contents
Plan Assets
The Company’s pension plan weighted average asset allocations at December 31, 2023 and 2022, by asset category, were
as follows:
Equity securities
Fixed income securities
Cash/Commingled Funds/Other (1)
Total
U.S. Plans
Non-U.S. Plans
2023
2022
2023
2022
9%
79%
12%
100%
9%
84%
7%
100%
10%
22%
68%
100%
13%
19%
68%
100%
The basis used to measure the defined benefit plans’ assets at fair value at December 31, 2023 and 2022 is summarized as
follows:
As of December 31, 2023
Equity
U.S. Large Cap
U.S. Small / Mid Cap
International
Fixed Income
U.S. Intermediate
U.S. Long Term
U.S. High Yield
International
Other Commingled Funds(1)
Cash and Equivalents
Other
Basis of Fair Value Measurement
Outstanding
Balances
Level 1
Level 2
Level 3
$
0.2 $
0.2 $
— $
2.1
2.4
2.5
3.3
0.5
6.4
25.8
1.1
1.7
—
0.8
—
—
—
0.2
—
0.6
—
2.1
1.6
2.5
3.3
0.5
6.2
—
0.5
1.7
$
46.0 $
1.8 $
18.4 $
—
—
—
—
—
—
—
25.8
—
—
25.8
(1)
Other commingled funds represent pooled institutional investments in non-U.S. plans.
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Table of Contents
As of December 31, 2022
Equity
U.S. Large Cap
U.S. Small / Mid Cap
International
Fixed Income
U.S. Intermediate
U.S. Long Term
U.S. High Yield
International
Other Commingled Funds(1)
Cash and Equivalents
Other
Basis of Fair Value Measurement
Outstanding
Balances
Level 1
Level 2
Level 3
$
0.2 $
0.2 $
— $
2.5
2.5
1.6
3.8
0.4
5.4
23.7
1.0
1.4
—
0.8
—
—
—
0.2
—
0.4
—
2.5
1.7
1.6
3.8
0.4
5.2
—
0.6
1.4
$
42.5 $
1.6 $
17.2 $
—
—
—
—
—
—
—
23.7
—
—
23.7
(1)
Other commingled funds represent pooled institutional investments in non-U.S. plans.
Equities that are valued using quoted prices are valued at the published market prices. Equities in a common collective trust
or a registered investment company that are valued using significant other observable inputs are valued at the net asset value
(“NAV”) provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund minus
its liabilities. Fixed income securities that are valued using significant other observable inputs are valued at prices obtained
from independent financial service industry-recognized vendors.
Investment Policies and Strategies
The investment objective of the U.S. plan, consistent with prudent standards for preservation of capital and maintenance of
liquidity, is to earn the highest possible total rate of return consistent with the plan’s tolerance for risk. The general asset
allocation guidelines for plan assets are that “equities” will constitute 10% and “fixed income” obligations, including cash, will
constitute 90% of the market value of total fund assets.
The investment objective of the UK plan, consistent with prudent standards for preservation of capital and maintenance of
liquidity, is to earn a target return of UK Gilts plus approximately 2.6% per year. The general asset allocation guidelines for
plan assets are that “equities” will constitute from 35% to 45% of the market value of total fund assets with a target of 40%, and
“fixed income” obligations, including cash, will constitute from 55% to 65% with a target of 60%. The UK plan also has a
framework in place such that if the funding position (which is monitored daily) improves to a certain level, the asset allocation
will switch out of equities into fixed income assets in order to lower the level of risk of the investments.
The term “equities” includes common stock, while the term “fixed income” includes obligations with contractual payments
and a specific maturity date. Diversification of assets is employed to ensure that adverse performance of one security or security
class does not have an undue detrimental impact on the portfolio as a whole. Diversification is interpreted to include
diversification by type, characteristic and number of investments as well as by investment style of designated investment fund
managers. No restrictions are placed on the selection of individual investments by the investment fund managers. The total fund
performance and the performance of the investment fund managers is reviewed on a regular basis using an appointed
professional independent advisor. As of December 31, 2023, there were no shares of the Company’s stock held in plan assets.
Cash Flows
The Company expects to contribute approximately $3.6 million to its defined benefit plans and $1.1 million to its other
postretirement benefit plans in 2024. The Company also expects to contribute approximately $17.3 million to its defined
contribution plan and $13.5 million to its 401(k) savings plan in 2024 using cash on hand.
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Table of Contents
Estimated Future Benefit Payments
The future estimated benefit payments for the next five years and the five years thereafter are as follows:
Estimated Future Benefits
2024
2025
2026
2027
2028
2029 to 2033
Total Estimated Future Benefit Payments
$
$
6.9
6.6
6.6
6.6
6.6
33.0
66.3
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Table of Contents
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A.
Controls and Procedures.
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be
disclosed in the Company’s Exchange Act reports is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s
management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure.
As required by SEC Rule 13a-15(b), the Company carried out an evaluation, under the supervision and with the
participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of
the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period
covered by this report. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded
that the Company’s disclosure controls and procedures were effective as of December 31, 2023.
Management’s Report on Internal Control Over Financial Reporting appearing on page 40 of this report is incorporated
into this Item 9A by reference.
There has been no change in the Company’s internal control over financial reporting during the Company’s most recent
fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over
financial reporting.
Item 9B.
Other Information.
During the year ended December 31, 2023, none of the Company’s directors or executive officers adopted or terminated
any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the
affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408 of
Regulation S-K under the Securities Exchange Act of 1934, as amended.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
Not Applicable.
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Table of Contents
Item 10.
Directors, Executive Officers and Corporate Governance.
PART III
Information under the headings “Election of Directors”; “Board Committees”; “Corporate Governance”; and “Delinquent
Section 16(a) Reports” in the 2024 Proxy Statement is incorporated into this Item 10 by reference. Information regarding
executive officers of the Company is located in Part I, Item 1, of this report under the caption “Information about Our Executive
Officers.”
The Company has adopted a Code of Business Conduct and Ethics applicable to the Company’s directors, officers
(including the Company’s principal executive officer, principal financial officer and principal accounting officer) and
employees. The Code of Business Conduct and Ethics, along with the Audit Committee Charter, Nominating and Corporate
Governance Committee Charter, Compensation Committee Charter and Corporate Governance Guidelines are available on the
Company’s website at www.idexcorp.com under “Investors.” In the event the Company amends or waives any of the provisions
of the Code of Business Conduct and Ethics applicable to the Company’s principal executive officer, principal financial officer
or principal accounting officer, the Company intends to disclose the same on its website.
Item 11.
Executive Compensation.
Information under the heading “Executive Compensation” in the 2024 Proxy Statement is incorporated into this Item 11 by
reference.
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Information under the heading “Security Ownership” in the 2024 Proxy Statement is incorporated into this Item 12 by
reference.
Equity Compensation Plan Information
Information with respect to the Company’s equity compensation plans as of December 31, 2023 is as follows:
Plan Category
Equity compensation plans approved by the Company’s
stockholders
Equity compensations plans not approved by the Company’s
stockholders
Number of Securities
To be Issued Upon
Exercise of
Outstanding Options,
Warrants and Rights
Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans
(1)
1,156,393 $
178.86
1,719,148
—
—
—
(1)
Includes an indeterminate number of shares underlying deferred compensation units (“DCUs”) granted under the
Directors Deferred Compensation Plan and Deferred Compensation Plan for Non-officer Presidents which are issuable
under the Company’s Incentive Award Plan. Also includes an indeterminate number of shares underlying DCUs granted
under the Deferred Compensation Plan for Officers, which shares are issuable under the Incentive Award Plan. The
number of DCUs granted under these plans is determined by dividing the amount deferred by the closing price of the
common stock the day before the date of deferral. The DCUs are entitled to receive dividend equivalents which are
reinvested in DCUs based on the same formula for investment of a participant’s deferral.
Item 13.
Certain Relationships and Related Transactions, and Director Independence.
Information under the headings, “Corporate Governance” and “Board Committees” in the 2024 Proxy Statement is
incorporated into this Item 13 by reference.
Item 14.
Principal Accountant Fees and Services.
Information under the heading “Principal Accountant Fees and Services” in the 2024 Proxy Statement is incorporated into
this Item 14 by reference.
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Table of Contents
Item 15.
Exhibits and Financial Statement Schedules.
(A) 1. Financial Statements
PART IV
Consolidated Financial Statements filed as part of this report are listed under Part II, Item 8. “Financial Statements and
Supplementary Data.”
2. Financial Statement Schedules
Financial statement schedules are omitted because they are not applicable, not required, not material or because the
required information is included in the Consolidated Financial Statements of the Company or the Notes thereto.
3. Exhibits
The exhibits filed with this report are listed on the “Exhibit Index,” which precedes the signature page of this report.
Item 16.
Form 10-K Summary.
None.
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Table of Contents
Exhibit
Number
Description
Exhibit Index
3.1
3.2
4.1
4.2
4.3
4.4
4.5
Restated Certificate of Incorporation of IDEX Corporation as amended to date (incorporated by reference
to Exhibit 3.1 to the Annual Report of IDEX Corporation on Form 10-K for the fiscal year ended
December 31, 2017)
Second Amended and Restated Bylaws of IDEX Corporation, effective as of October 24, 2022
(incorporated by reference to Exhibit No. 3.1 to the Quarterly Report on Form 10-Q of IDEX Corporation
for the quarter ended September 30, 2022)
Indenture between IDEX Corporation and Wells Fargo Bank, National Association, as Trustee, dated as of
December 6, 2010 (Debt Securities) (incorporated by reference to Exhibit No. 4.1 to the Current Report of
IDEX Corporation on Form 8-K filed December 7, 2010)
Third Supplemental Indenture between IDEX Corporation and Wells Fargo Bank, National Association, as
Trustee, dated as of April 29, 2020, (as to 3.00% Senior Notes due 2030) (incorporated by reference to
Exhibit No. 4.2 to the Current Report of IDEX Corporation on Form 8-K filed April 29, 2020)
Fourth Supplemental Indenture between IDEX Corporation and Wells Fargo Bank, National Association,
as Trustee, dated as of May 28, 2021, (as to 2.625% Senior Notes due 2031) (incorporated by reference to
Exhibit No. 4.2 to the Current Report of IDEX Corporation on Form 8-K filed May 28, 2021)
Note Purchase Agreement, dated June 13, 2016, between IDEX Corporation and the Purchasers listed in
Schedule A thereto (incorporated by reference in Exhibit No. 4.1 to the Current Report of IDEX
Corporation on Form 8-K filed June 15, 2016)
Note Purchase and Master Note Agreement, dated June 13, 2023, among IDEX Corporation, NYL
Investors LLC, New York Life Insurance Company, New York Life Group Insurance Company of NY,
New York Life Insurance and Annuity Corporation Institutionally owned Life Insurance Separate Account
(BOLI 3), New York Life Insurance and Annuity Corporation Institutionally owned Life Insurance
Separate Account (BOLI 3-2) and New York Life Insurance and Annuity Corporation Institutionally
owned Life Insurance Separate Account (BOLI 30C) (incorporated by reference to Exhibit No. 4.1 to the
Current Report of IDEX Corporation on Form 8-K filed June 14, 2023)
4.6
Description of Securities (incorporated by reference to Exhibit No. 4.5 to the Annual Report of IDEX
Corporation on Form 10-K for the fiscal year ended December 31, 2019)
10.1**
10.2**
10.3**
10.4**
10.5**
10.6**
10.7**
10.8**
Revised and Restated IDEX Corporation Management Incentive Compensation Plan for Key Employees
Effective January 1, 2022 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q
of IDEX Corporation for the quarter ended June 30, 2023)
IDEX Corporation Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.2
to the Annual Report of IDEX Corporation on Form 10-K for the fiscal year ended December 31, 2017)
IDEX Corporation Amended and Restated Stock Option Plan for Outside Directors, adopted by resolution
of the Board of Directors dated as of November 20, 2003 (incorporated by reference to Exhibit 10.6 (a) to
the Annual Report of IDEX Corporation on Form 10-K for the year ended December 31, 2003)
IDEX Corporation Incentive Award Plan (as amended and restated) (incorporated by reference to
Appendix A of the Proxy Statement of IDEX Corporation on Schedule 14A, filed March 5, 2015)
Third Amended and Restated IDEX Corporation Directors Deferred Compensation Plan (incorporated by
reference to Exhibit No. 10.30 to the Annual Report of IDEX Corporation on Form 10-K for the year
ended December 31, 2010)
IDEX Corporation Supplemental Executive Retirement and Deferred Compensation Plan (incorporated by
reference to Exhibit No. 10.31 to the Annual Report of IDEX Corporation on Form 10-K for the year
ended December 31, 2010)
Letter Agreements between IDEX Corporation and Eric Ashleman, dated January 14, 2008 and February
12, 2014 (incorporated by reference to Exhibit No. 10.14 to the Annual Report of IDEX Corporation on
Form 10-K for the year ended December 31, 2014)
Form of IDEX Corporation Stock Option Agreement effective February 2015 (incorporated by reference to
Exhibit No. 10.17 to the Annual Report of IDEX Corporation on Form 10-K for the year ended December
31, 2014)
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Table of Contents
Exhibit
Number
Description
10.9**
10.10**
10.11**
10.12**
10.13**
10.14**
10.15**
10.16**
10.17**
10.18**
10.19**
10.20**
10.21**
10.22**
10.23**
10.24**
10.25**
Form of IDEX Corporation Restricted Stock Unit Award Agreement effective February 2015 (incorporated
by reference to Exhibit No. 10.18 to the Annual Report of IDEX Corporation on Form 10-K for the year
ended December 31, 2014)
Form of IDEX Corporation Restricted Stock Unit Award Agreement - Cash Settled effective February
2015 (incorporated by reference to Exhibit No. 10.19 to the Annual Report of IDEX Corporation on Form
10-K for the year ended December 31, 2014)
Form of IDEX Corporation Performance Share Unit Award Agreement effective February 2015
(incorporated by reference to Exhibit No. 10.20 to the Annual Report of IDEX Corporation on Form 10-K
for the year ended December 31, 2014)
Form of IDEX Corporation Restricted Stock Unit Agreement for Directors effective February 2015
(incorporated by reference to Exhibit No. 10.21 to the Annual Report of IDEX Corporation on Form 10-K
for the year ended December 31, 2014)
Form of IDEX Corporation Stock Option Agreement effective February 2015 (incorporated by reference to
Exhibit No. 10.22 to the Annual Report of IDEX Corporation on Form 10-K for the year ended December
31, 2014)
Form of IDEX Corporation Restricted Stock Award Agreement effective February 2015 (incorporated by
reference to Exhibit No. 10.23 to the Annual Report of IDEX Corporation on Form 10-K for the year
ended December 31, 2014)
Letter Agreement between IDEX Corporation and Eric D. Ashleman, dated January 21, 2021 (incorporated
by reference to Exhibit 10.18 to the Annual Report of IDEX Corporation on Form 10-K for the fiscal year
ended December 31, 2020)
Amendment to Letter Agreement dated February 12, 2014, between IDEX Corporation and Eric D.
Ashleman, effective as of April 24, 2017 (incorporated by reference to Exhibit 10.2 to the Quarterly Report
on Form 10-Q of IDEX Corporation for the quarter ended March 31, 2017)
Form of IDEX Corporation Performance Share Unit Award Agreement - Stock Settled, effective February
2018 (incorporated by reference to Exhibit 10.26 to the Annual Report of IDEX Corporation on Form 10-
K for the fiscal year ended December 31, 2017)
Form of IDEX Corporation Restricted Stock Award Agreement, effective February 2018 (incorporated by
reference to Exhibit 10.27 to the Annual Report of IDEX Corporation on Form 10-K for the fiscal year
ended December 31, 2017)
Form of IDEX Corporation Restricted Stock Unit Agreement for Directors, effective February 2018
(incorporated by reference to Exhibit 10.28 to the Annual Report of IDEX Corporation on Form 10-K for
the fiscal year ended December 31, 2017)
Form of IDEX Corporation Performance Share Unit Award Agreement - Cash Settled, effective February
2018 (incorporated by reference to Exhibit 10.29 to the Annual Report of IDEX Corporation on Form 10-
K for the fiscal year ended December 31, 2017)
Form of IDEX Corporation Stock Option Agreement, effective February 2018 (incorporated by reference
to Exhibit 10.30 to the Annual Report of IDEX Corporation on Form 10-K for the fiscal year ended
December 31, 2017)
Form of IDEX Corporation Stock Option Agreement - Cash Settled, effective February 2018 (incorporated
by reference to Exhibit 10.31 to the Annual Report of IDEX Corporation on Form 10-K for the fiscal year
ended December 31, 2017)
Form of IDEX Corporation Restricted Stock Unit Award Agreement - Cash Settled, effective February
2018 (incorporated by reference to Exhibit 10.32 to the Annual Report of IDEX Corporation on Form 10-
K for the fiscal year ended December 31, 2017)
Form of IDEX Corporation Restricted Stock Unit Award Agreement, effective December 2015
(incorporated by reference to Exhibit 10.33 to the Annual Report of IDEX Corporation on Form 10-K for
the fiscal year ended December 31, 2017)
Form of IDEX Corporation Confidential Information, Work Product and Restrictive Covenant Agreement
(incorporated by reference to Exhibit 10.34 to the Annual Report of IDEX Corporation on Form 10-K for
the fiscal year ended December 31, 2017)
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Table of Contents
Exhibit
Number
Description
10.26
10.27**
10.28**
10.29**
Amended and Restated Credit Agreement, dated as of November 1, 2022, which amends and restates the
Credit Agreement, dated as of May 31, 2019, by and among IDEX Corporation and certain of its
subsidiaries, as borrowers, Bank of America, N.A., as administrative agent, swing line lender and an issuer
of letters of credit; JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association, as co-
syndication agents and issuers of letters of credit; HSBC Bank USA, National Association, Mizuho Bank,
Ltd., and Bank of China, Chicago Branch, as co-documentation agents and the other lenders and financial
institutions party thereto (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of
IDEX Corporation filed on November 2, 2022)
IDEX Amended and Restated Non-Employee Director Compensation Policy, effective January 1, 2020
(incorporated by reference to Exhibit 10.35 to the Annual Report of IDEX Corporation on Form 10-K for
the fiscal year ended December 31, 2019)
Letter Agreement between IDEX Corporation and Melissa S. Flores, dated as of January 7, 2021
(incorporated by reference to Exhibit No. 10.1 to the Quarterly Report on Form 10-Q of IDEX Corporation
for the quarter ended March 31, 2022)
Letter Agreement between IDEX Corporation and Lisa M. Anderson, dated as of February 16, 2022
(incorporated by reference to Exhibit 10.31 to the Annual Report of IDEX Corporation on Form 10-K for
the fiscal year ended December 31, 2022)
10.30*,**
Letter Agreement between IDEX Corporation and Abhishek Khandelwal, dated as of October 19, 2023
10.31**
10.32**
10.33**
Letter Agreement between IDEX Corporation’s subsidiary Fast & Fluid Management B.V. and Marc
Uleman, dated as of June 15, 2020
Addendum to Letter Agreement dated June 15, 2020, between IDEX Corporation’s subsidiary Fast & Fluid
Management B.V. and Marc Uleman, dated as of October 4, 2022
Termination and Release Agreement between Fast & Fluid Management B.V. and M.A. Uleman, dated as
of August 31, 2023 (incorporated by reference to Exhibit No. 10.1 to the Quarterly Report on Form 10-Q
of IDEX Corporation for the quarter ended September 30, 2023)
21* Subsidiaries of IDEX
23* Consent of Deloitte & Touche LLP
31.1* Certification of Chief Executive Officer Pursuant to Rule 13a-14 (a) or Rule 15d-14 (a)
31.2* Certification of Chief Financial Officer Pursuant to Rule 13a-14 (a) or Rule 15d-14 (a)
32.1*** Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code
32.2*** Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code
97*
IDEX Corporation Policy on Recoupment of Incentive Compensation
*,****101
The following materials from IDEX Corporation’s Annual Report on Form 10-K for the year ended
December 31, 2023 formatted in Inline XBRL (Extensible Business Reporting Language): (i) the
Consolidated Balance Sheets at December 31, 2023 and 2022, (ii) the Consolidated Statements of Income
for the three years ended December 31, 2023, (iii) the Consolidated Statements of Comprehensive Income
for the three years ended December 31, 2023, (iv) the Consolidated Statements of Equity for the three years
ended December 31, 2023, (v) the Consolidated Statements of Cash Flows for the three years ended
December 31, 2023, and (vi) Notes to the Consolidated Financial Statements.
*,****104
Cover Page Interactive Data File (Formatted Inline XBRL and contained in Exhibit 101)
*
**
Filed herewith.
Management contract or compensatory plan or agreement.
***
Furnished herewith.
****
In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibits 101 and 104 to this
Annual Report on Form 10-K shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act,
or otherwise subject to the liability of that section, and shall not be part of any registration statement or other
99
Table of Contents
document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SIGNATURES
IDEX CORPORATION
By:
/s/ ABHISHEK KHANDELWAL
Abhishek Khandelwal
Senior Vice President and Chief Financial Officer
Date: February 22, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and on the dates indicated.
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Table of Contents
Signature
Title
Date
/s/ ERIC D. ASHLEMAN
Eric D. Ashleman
/s/ ABHISHEK KHANDELWAL
Abhishek Khandelwal
/s/ ALLISON S. LAUSAS
Allison S. Lausas
/s/ MARK A. BECK
Mark A. Beck
/s/ MARK A. BUTHMAN
Mark A. Buthman
/s/ ALEJANDRO QUIROZ CENTENO
Alejandro Quiroz Centeno
/s/ CARL R. CHRISTENSON
Carl R. Christenson
/s/ LAKECIA N. GUNTER
Lakecia N. Gunter
/s/ KATRINA L. HELMKAMP
Katrina L. Helmkamp
/s/ DAVID C. PARRY
David C. Parry
/s/ LIVINGSTON L. SATTERTHWAITE
Livingston L. Satterthwaite
/s/ L. PARIS WATTS-STANFIELD
L. Paris Watts-Stanfield
Chief Executive Officer,
President and Director
(Principal Executive Officer)
Senior Vice President and
Chief Financial
Officer (Principal Financial Officer)
Vice President and
Chief Accounting Officer
(Principal Accounting Officer)
Director
Director
Director
Director
Director
Non-Executive Chairman of the Board and
Director
Director
Director
Director
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
February 22, 2024
101