SIMPLE IDEAS.
POWERFUL RESULTS.
2017 ANNUAL REPORT
2017 HIGHLIGHTS
• Annual shareholder return of 42%, doubling the performance
of the S&P 500
• Revenue increased 23% to $4.67 billion
• Gross margin expanded 90 basis points to 62.6%
• EBITDA increased 22% to $1.60 billion
• Operating cash flow increased 23% to $1.23 billion
• Reduced debt by $1.06 billion, deleveraging faster than
expected after our 2016 acquisitions of Deltek and
ConstructConnect
• Raised annual dividend by 18%, increasing for the 25th
consecutive year, thus achieving “Dividend Aristocrat” status
ROPER TECHNOLOGIES
2017 ANNUAL REPORT
DRIVING LONG-TERM
SHAREHOLDER VALUE
TOTAL SHAREHOLDER RETURN
($100 INVESTED AT IPO)
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
0
IPO
’92
’93
’94
’95
’96
’97
’98
’99
’00
’01
’02
’03
’04
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
’15
’16
’17
Roper Technologies, Inc.
S&P 500
ROPER TECHNOLOGIES
2017 ANNUAL REPORT
“
2017 was a remarkable year for Roper in which we
grew revenue, net earnings, EBITDA, and cash flow
each by greater than 20%.”
DEAR SHAREHOLDERS,
I am pleased to report another record year for Roper
capital deployment generates a “compounding effect”
Technologies. Our strategic focus on asset-light,
on cash flow that drives long-term value creation.
diversified technology businesses and ability to gener-
ate and compound cash flow delivered another year
of outstanding shareholder return. Our shareholders
enjoyed a 42% return in 2017, double the performance
of the S&P 500. And over the past 15 years, our total
shareholder return has been nearly 5 times greater than
the overall market. We also announced an 18% increase
to our annual dividend. This marks the 25th consecutive
year we’ve increased the dividend, qualifying us to join
the prestigious group of “Dividend Aristocrats.”
Roper has a simple and proven business model that we
believe is unique among application software and
multi-industry diversified companies. We operate
high-margin, high cash-generating, asset-light busi-
nesses across a variety of niche end markets. Our
high-performing businesses generate excess free cash
flow that our executive team deploys to acquire more
high-performing businesses. This combination of out-
standing business performance and value-creating
Operationally, 2017 was a remarkable year for Roper in
which we grew revenue, net earnings, EBITDA, and
cash flow each by greater than 20%. Our large 2016
acquisitions, Deltek and ConstructConnect, exceeded
our revenue and cash flow expectations, and our core
businesses delivered strong +5% organic revenue growth.
Gross margin expanded 90 basis points, demonstrating
how the compelling value in our products and solu-
tions helps keep us ahead of cost pressure.
We continue to believe cash is the best measure of
performance, and we had another outstanding year of
cash flow growth in 2017. Operating cash flow grew
23% to $1.23 billion and free cash flow grew 22% to
$1.17 billion. Operating cash flow was 26% of revenue
and free cash flow was 25% of revenue. Our ability to
consistently deliver premium levels of performance on
these measures demonstrates the sustainability of the
Roper business model.
Note: The financial information is presented on an adjusted (non-GAAP) basis. A reconciliation of GAAP to non-GAAP financial measures can be found on page 74.
ROPER TECHNOLOGIES
2017 ANNUAL REPORT
2017
PERFORMANCE
REVENUE
(In Millions)
$3,805
$4,665
+23%
2016
2017
EBITDA
(In Millions)
$1,315
$1,605
+22%
2016
2017
OPERATING
CASH FLOW
(In Millions)
$1,234
+23%
$1,001
2016
2017
We ended 2017 with negative net working capital for the
first time in our history. Our net working capital as a per-
centage of revenue was (3%) at the end of 2017, compared
to +3% one year ago, +7% five years ago and +13% ten
years ago. Now as we grow, working capital is a source of
cash instead of a use of cash. Our software and network
businesses, which represent approximately 50% of Roper’s
EBITDA, are an important driver of this transformation.
These businesses are an exceptional fit for the Roper busi-
ness model with high margins, low asset-intensity, strong
recurring revenue and customer retention, and high Cash
Return on Investment (“CRI”).
CRI is a key operating metric that Roper uses to measure
the performance and value of its operating businesses and
potential acquisitions. Applying our CRI principles through-
out the organization allows us to focus investment on
areas that will increase shareholder value, drive cash flow
growth, and minimize physical assets. Through a combination
of internal improvements and disciplined capital deployment,
Roper has increased its CRI dramatically, from ~30% in
2003 to ~300% in 2017.
ROPER TECHNOLOGIES
2017 ANNUAL REPORT
TRANSFORMATION OVER
THE PAST DECADE
FULL YEAR
GROSS MARGIN
56.0%
50.4%
62.6%
+1,220 Bps
2007
2012
2017
FULL YEAR EBITDA
MARGIN
30.8%
25.2%
34.4% +920 Bps
2007
2012
2017
NET WORKING CAPITAL1 AS % OF
Q4 ANNUALIZED REVENUE
13.0%
“
Our combination of outstanding
business performance and value-
creating capital deployment generates
a ‘compounding effect’ on cash flow
that drives long-term value creation.”
Over the past decade, our transformation into a diver-
sified technology company can be seen in the remark-
able improvement to our margins and working capital
position. During this time, gross margin expanded 1,220
basis points, EBITDA margin expanded 920 basis points,
and net working capital became a negative 3.3% of
annualized revenue.
Looking ahead to 2018, our ability to compound cash
has been significantly enhanced. We reduced debt by
$1.06 billion in 2017, demonstrating our disciplined
deployment of capital following a record year of acqui-
sitions in 2016 and our ongoing commitment to maintain
an investment-grade rating with credit agencies. The
recently passed Tax Cuts and Jobs Act provides a trifecta
of benefits for Roper with a lower tax rate, higher
resulting cash flow, and access to global cash providing
an immediate source of capital for investments.
Roper is entering 2018 with outstanding positive
momentum, and our consistent, broad-based organic
revenue growth is expected to continue. Our enduring
principle that Simple Ideas and Nimble Execution
produce Powerful Results will continue to guide our
culture. Our recent internal executive promotions under-
score our commitment to a strong leadership team that
will ensure the continuity and scalability of our strategy
and governance model into the future.
Thank you for being a shareholder, and we look forward
to another record year in 2018.
7.0%
(3.3)% (1,630) Bps
Sincerely,
2007
2012
2017
1See appendix on page 74.
BRIAN JELLISON
2017
FORM 10-K
(THIS PAGE INTENTIONALLY LEFT BLANK)
6
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(cid:2) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2017
□ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission File Number 1-12273
ROPER TECHNOLOGIES, INC.
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
51-0263969
(I.R.S. Employer
Identification No.)
6901 Professional Parkway East, Suite 200
Sarasota, Florida 34240
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (941) 556-2601
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class
Common Stock, $0.01 Par Value
Name of Each Exchange On Which Registered
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.
(cid:2) Yes □ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934. □ Yes (cid:2) No
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. (cid:2) Yes □ No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorpo-
rated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. □
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§223.405) during the preced-
ing 12 months (or for such shorter period that the registrant was required to submit and post such files). (cid:2) Yes □ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company (as defined in Rule 12b-2 of the Exchange Act). (cid:2) Large accelerated filer □ Accelerated filer
□ Non-accelerated filer □ Smaller reporting company □ 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. □
Indicate by check mark if the registrant is a shell company (as defined in Rule 12-b2 of the Act). □ Yes (cid:2) No
Based on the closing sale price on the New York Stock Exchange on June 30, 2017, the aggregate market value of the voting
and non-voting common stock held by non-affiliates of the registrant was: $23,224,859,776.
Number of shares of registrant’s Common Stock outstanding as of February 16, 2018: 102,826,454.
Portions of the registrant’s Proxy Statement to be furnished to Stockholders in connection with its Annual Meeting of
Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.
DOCUMENTS INCORPORATED BY REFERENCE
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
7
TABLE OF CONTENTS
ROPER TECHNOLOGIES, INC.
FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
PART I
Page
Item 1.
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Item 1A.
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Item 1B.
Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Item 2.
Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Item 3.
Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Item 4.
Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Item 6.
Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . 20
Item 7A.
Quantitative and Qualitative Disclosures about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Item 8.
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . . . . . . . . . . . . . . . . . . 54
Item 9A.
Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Item 9B.
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
PART III
Item 10.
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Item 11.
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. . . . . . . . . . 55
Item 13.
Certain Relationships and Related Transactions and Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Item 14.
Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
PART IV
Item 15.
Exhibits and Financial Statement Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Item 16.
Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Appendix—Reconciliations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
8
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K (“Annual Report”) includes and incorporates by reference “forward-looking statements”
within the meaning of the federal securities laws. In addition, we, or our executive officers on our behalf, may from time to
time make forward-looking statements in reports and other documents we file with the U.S. Securities and Exchange
Commission (“SEC”) or in connection with oral statements made to the press, potential investors or others. All statements
that are not historical facts are “forward-looking statements.” Forward-looking statements may be indicated by words or
phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “believes” or “intends” and similar
words and phrases. These statements reflect management’s current beliefs and are not guarantees of future performance.
They involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in
any forward-looking statement.
Examples of forward-looking statements in this report include but are not limited to statements regarding operating
results, the success of our operating plans, our expectations regarding our ability to generate cash and reduce debt and
associated interest expense, profit and cash flow expectations, the prospects for newly acquired businesses to be integrated
and contribute to future growth and our expectations regarding growth through acquisitions. Important assumptions relat-
ing to the forward-looking statements include, among others, demand for our products, the cost, timing and success of
product upgrades and new product introductions, raw material costs, expected pricing levels, expected outcomes of pend-
ing litigation, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Although
we believe that the estimates and projections reflected in the forward-looking statements are reasonable, our expectations
may prove to be incorrect. Important factors that could cause actual results to differ materially from estimates or projections
contained in the forward-looking statements include, but are not limited to:
• general economic conditions;
• difficulty making acquisitions and successfully integrating acquired businesses;
• any unforeseen liabilities associated with future acquisitions;
• limitations on our business imposed by our indebtedness;
• unfavorable changes in foreign exchange rates;
• difficulties associated with exports;
• risks and costs associated with our international sales and operations;
• rising interest rates;
• product liability and insurance risks;
• increased warranty exposure;
• future competition;
• the cyclical nature of some of our markets;
• reduction of business with large customers;
• risks associated with government contracts;
• changes in the supply of, or price for, raw materials, parts and components;
• environmental compliance costs and liabilities;
• risks and costs associated with asbestos-related litigation;
• potential write-offs of our goodwill and other intangible assets;
• our ability to successfully develop new products;
• failure to protect our intellectual property;
• the effect of, or change in, government regulations (including tax);
• economic disruption caused by terrorist attacks, including cybersecurity threats, health crises or other unforeseen
events; and
• the factors discussed in Item 1A to this Annual Report under the heading “Risk Factors.”
We believe these forward-looking statements are reasonable. However, you should not place undue reliance on any forward-
looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date
they are made, and we undertake no obligation to publicly update any of them in light of new information or future events.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
9
PART I
ITEM 1 | BUSINESS
OUR BUSINESS
Roper Technologies, Inc. (“Roper,” the “Company,” “we,” “our” or “us”) is a diversified technology company. We operate busi-
nesses that design and develop software (both license and software-as-a-service) and engineered products and solutions for
a variety of niche end markets.
We pursue consistent and sustainable growth in earnings and cash flow by emphasizing continuous improvement in the
operating performance of our existing businesses and by acquiring other businesses that offer high value-added software,
services, engineered products and solutions that we believe are capable of achieving growth and maintaining high margins.
We compete in many niche markets and believe we are the market leader or a competitive alternative to the market leader
in most of these markets.
We were incorporated on December 17, 1981 under the laws of the State of Delaware.
MARKET SHARE, MARKET EXPANSION, AND PRODUCT DEVELOPMENT
Leadership with Engineered Content for Niche Markets—We maintain a leading position in many of our markets. We believe our
market positions are attributable to the technical sophistication of our products and software, the applications expertise used to
create our advanced products and systems, and our distribution and service capabilities. Our operating units grow their busi-
nesses through new product development and development of new applications and services to satisfy customer needs. In
addition, our operating units grow our customer base by expanding our access to customers and entering adjacent markets.
Diversified End Markets and Geographic Reach—We have a global presence, with sales to customers outside the U.S. totaling
$1.3 billion in 2017. Information regarding our international operations is set forth in Note 13 of the Notes to Consolidated
Financial Statements included in this Annual Report.
Research and Development—We conduct applied research and development to improve the quality and performance of our
products and to develop new technologies and products. Our research and development spending was $281 million in 2017
as compared to $195 million and $164 million in 2016 and 2015, respectively.
t
OUR BUSINESS SEGMENTS
Our operations are reported in four segments based upon common customers, markets, sales channels, technologies and
common cost opportunities. The segments are: RF Technology, Medical & Scientific Imaging, Industrial Technology and Energy
Systems & Controls. Financial information about our business segments is presented in Note 13 of the Notes to Consolidated
Financial Statements included in this Annual Report.
RF Technology
Our RF Technology segment provides radio frequency identification (“RFID”) communication technology and software solu-
tions. This segment had net revenues of $1.86 billion for the year ended December 31, 2017, representing 40.4% of our total
net revenues.
Comprehensive Application Management Software—We provide 1) enterprise software and information solutions for gov-
ernment contractors, professional services firms and other project-based businesses, 2) comprehensive management
software solutions for law and other professional services firms, including business development, calendar/docket matter
management, time and billing and case management and 3) preconstruction project management solutions for construction
industry professionals.
Software-as-a-Service—We maintain electronic marketplaces that connect 1) available capacity of trucking units with the
available loads of freight to be moved from location to location throughout North America, 2) food suppliers, distributors
and vendors, primarily in the perishable food sector and 3) construction industry professionals.
Card Systems/Integrated Security Solutions—We provide software, card systems and integrated security solutions pri-
marily to education and health care markets. We also provide an integrated nutrition management solution used by food
service customers.
Toll and Traffic Systems—We manufacture and sell toll tags and monitoring systems as well as provide transaction and
violation processing services for toll and traffic systems to both governmental and private sector entities. In addition, we
provide intelligent traffic systems that assist customers in improving traffic flow and infrastructure utilization.
RFID Card Readers—We design, develop and manufacture RFID card readers that support most smart cards worldwide.
The readers are used in numerous applications and OEM solutions including secure printing and single sign-on across
several vertical markets including healthcare, manufacturing and government.
10
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Metering and Remote Monitoring—We manufacture and sell meter reading, data logging and pressure control products for
use primarily in water and gas applications. We also provide network monitoring, leakage reduction and pressure control
services in water and gas distribution networks.
Medical and Scientific Imaging
Our Medical & Scientific Imaging segment offers products and software in medical applications, and high performance digital
imaging products. For 2017, this segment had net revenues of $1.41 billion, representing 30.6% of our total net revenues.
Medical Products and Software—We provide diagnostic and laboratory software solutions to healthcare providers and
services and technologies to support the diverse and complex needs of alternate site health care providers who deliver
services outside of an acute care hospital setting. We also manufacture and sell patient positioning devices and related
software for use in radiation oncology and 3-D measurement technology in computer-assisted surgery, and we supply
diagnostic and therapeutic disposable products used in ultrasound imaging for minimally invasive medical procedures.
We design and manufacture a non-invasive instrument for portable ultrasound bladder volume measurement and a video
laryngoscope designed to enable rapid intubation in difficult situations. In addition, we provide a cloud-based financial
analytics and performance software platform to healthcare providers.
Digital Imaging Products and Software—We manufacture and sell extremely sensitive, high-performance electron filters,
charged couple device (“CCD”) and complementary metal oxide semiconductor (“CMOS”) cameras, detectors and
related software for a variety of scientific and industrial uses, which require high resolution and/or high speed digital
video, including electron microscopy and spectroscopy applications. We sell these products for use within academic,
government research, semiconductor, security and other end-user markets such as biological and material science.
They are frequently incorporated into products by original equipment manufacturers (“OEMs”).
Industrial Technology
Our Industrial Technology segment produces primarily water meter and meter reading technology, fluid handling pumps,
and materials analysis solutions. For 2017, this segment had net revenues of $784 million, representing 17.0% of our total
net revenues.
Water Meter and Automatic Meter Reading Products and Systems—We manufacture and distribute water meter products
serving the residential, commercial and industrial water management markets, and several lines of automatic meter
reading products and systems serving these markets.
Fluid Handling Pumps—We manufacture and sell a wide variety of pumps. These pumps vary significantly in complexity
and in pumping method employed, which allows for the movement and application of a diverse range of low and high
viscosity liquids, high solids content slurries and chemicals. Our pumps are used in end markets such as oil and gas,
agricultural, water and wastewater, chemical and general industrial.
Materials Analysis Equipment and Consumables—We manufacture and sell equipment and supply consumables necessary
to prepare material samples for testing and analysis. These products are used mostly within the material science, steel,
automotive, electronics, mining and research end-user markets.
The Industrial Technology segment companies’ revenues reflect a combination of standard products and specially engineered,
application-specific products. Standard products are typically shipped within two weeks of receipt of order. Application-specific
products typically ship within 6 to 12 weeks following receipt of order. However, larger project orders and blanket purchase
orders for certain OEMs may extend shipment for longer periods.
Energy Systems & Controls
Our Energy Systems & Controls segment principally produces control systems, testing equipment, valves and sensors.
For 2017, this segment had net revenues of $551 million, representing 12.0% of our total net revenues.
Control Systems—We manufacture control systems and provide related engineering and commissioning services for
turbomachinery applications, primarily in energy markets.
Fluid Properties Testing Equipment—We manufacture and sell test equipment to determine physical and elemental
properties, such as sulfur and nitrogen content, flash point, viscosity, freeze point and distillation range of liquids and
gases primarily for the petroleum industry.
t
Sensors, Controls and Valves—We manufacture sensors and control equipment including pressure sensors, temperature
sensors, measurement instruments and control software for global rubber, plastics and process industries. We also man-
ufacture and distribute valves, sensors, switches and control products used on engines, compressors, turbines and other
powered equipment for the oil and gas, pipeline, power generation, marine engine and general industrial markets. Many
of these products are designed for use in hazardous environments.
Non-destructive Inspection and Measurement Instrumentation—We manufacture non-destructive inspection and
measurement solutions including measurement probes, robotics, vibration sensors, switches and transmitters.
These solutions are applied principally in nuclear energy markets. Many of these products are designed for use in
hazardous environments.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
11
The Energy Systems & Controls segment companies’ revenues reflect a combination of standard products and large engi-
neered projects. Standard products generally ship within two weeks of receipt of order, and large engineered projects may
have lead times of several months. As such, backlog may fluctuate depending upon the timing of large project awards.
MATERIALS AND SUPPLIERS
We believe most materials and supplies we use are readily available from numerous sources and suppliers throughout the
world. However, some components and sub-assemblies are currently available from a limited number of suppliers. Some
high-performance components for digital imaging products can be in short supply and/or suppliers have occasional difficulty
manufacturing such components to our specifications. We regularly investigate and identify alternative sources where possi-
ble, and we believe these conditions equally affect our competitors. Supply shortages have not had a material adverse effect
on our revenues although delays in shipments have occurred following such supply interruptions.
BACKLOG
Our backlog includes only firm unfilled orders expected to be recognized as revenue within twelve months. Backlog was
$1.7 billion at December 31, 2017, and $1.6 billion at December 31, 2016.
DISTRIBUTION AND SALES
Distribution and sales occur through direct sales offices, manufacturers’ representatives and distributors. In addition, our
Medical & Scientific Imaging segment also sells through value added resellers (“VARs”) and OEMs.
ENVIRONMENTAL MATTERS AND OTHER GOVERNMENTAL REGULATION
Our operations and properties are subject to laws and regulations relating to environmental protection, including those gov-
erning air emissions, water discharges, waste management and workplace safety. We use, generate and dispose of hazardous
substances and waste in our operations and could be subject to material liabilities relating to the investigation and clean-up of
contaminated properties and related claims. We are required to conform our operations and properties to these laws and
adapt to regulatory requirements in all countries as these requirements change. In connection with our acquisitions, we may
assume significant environmental liabilities, some of which we may not be aware of, or may not be quantifiable, at the time of
acquisition. In addition, new laws and regulations, the discovery of previously unknown contamination or the imposition of new
requirements could increase our costs or subject us to new or increased liabilities.
CUSTOMERS
No customer accounted for 10% or more of net revenues for 2017 for any of our segments or for our company as a whole.
COMPETITION
Generally, our products and solutions face significant competition, usually from a limited number of competitors. We believe
that we are a leader in most of our markets, and no single company competes with us over a significant number of product
lines. Competitors might be large or small in size, often depending on the size of the niche market we serve. We compete
primarily on product quality, performance, innovation, technology, price, applications expertise, system and service flexibility,
distribution channel access and customer service capabilities.
PATENTS AND TRADEMARKS
In addition to trade secrets, unpatented know-how, and other intellectual property rights, we own or license the rights under a
number of patents, trademarks and copyrights relating to certain of our products and businesses. We also employ various
methods, including confidentiality and non-disclosure agreements with individuals and companies we do business with,
employees, distributors, representatives and customers to protect our trade secrets and know-how. We believe our operating
units are not substantially dependent on any single patent, trademark, copyright, or other item of intellectual property or group
of patents, trademarks or copyrights.
EMPLOYEES
As of December 31, 2017, we had 14,236 employees, with 9,425 located in the United States. We have 187 employees who are
subject to collective bargaining agreements. We have not experienced any work stoppages and consider our relations with our
employees to be good.
AVAILABLE INFORMATION
All reports we file electronically with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K and our annual proxy statements, as well as any amendments to those reports, are accessible at
12
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
no cost on our website at www.ropertech.com as soon as reasonably practicable after we electronically file such material with,
or furnish it to, the SEC. These filings are also accessible on the SEC’s website at www.sec.gov. You may also read and copy
any material we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may
obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Our Corporate
Governance Guidelines; the charters of our Audit Committee, Compensation Committee, and Nominating and Governance
Committee; and our Business Code of Ethics and Standards of Conduct are also available on our website. Any amendment to
the Business Code of Ethics and Standards of Conduct and any waiver applicable to our directors, executive officers or senior
financial officers will be posted on our website within the time period required by the SEC and the New York Stock Exchange
(the “NYSE”). The information posted on our website is not incorporated into this Annual Report.
We have included the Chief Executive Officer and the Chief Financial Officer certifications regarding our public disclosure
required by Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1 and 31.2 of this report. Additionally, we filed with
the NYSE the Chief Executive Officer certification regarding our compliance with the NYSE’s Corporate Governance Listing
Standards (the “Listing Standards”) pursuant to Section 303A.12(a) of the Listing Standards. We filed the certification with
the NYSE on June 29, 2017 and our Chief Executive Officer indicated that he was not aware of any violations of the Listing
Standards by us.
ITEM 1A | RISK FACTORS
RISKS RELATING TO OUR BUSINESS
Our indebtedness may affect our business and may restrict our operating flexibility.
As of December 31, 2017, we had $5.2 billion in total consolidated indebtedness. In addition, we had $1.2 billion undrawn
availability under our senior unsecured credit facility. Subject to restrictions contained in our credit facility, we may incur
additional indebtedness in the future, including indebtedness incurred to finance acquisitions.
Our level of indebtedness and the debt servicing costs associated with that indebtedness could have important effects on
our operations and business strategy. For example, our indebtedness could:
• limit our ability to borrow additional funds;
• limit our ability to complete future acquisitions;
• limit our ability to pay dividends;
• limit our ability to make capital expenditures;
• place us at a competitive disadvantage relative to our competitors, some of which have lower debt service obligations
and greater financial resources; and
• increase our vulnerability to general adverse economic and industry conditions.
Our ability to make scheduled principal payments of, to pay interest on, or to refinance our indebtedness and to satisfy our other
debt obligations will depend upon our future operating performance, which may be affected by factors beyond our control. In
addition, there can be no assurance that future borrowings or equity financing will be available to us on favorable terms for the
payment or refinancing of our indebtedness. If we are unable to service our indebtedness, our business, financial condition and
results of operations would be materially adversely affected.
Our credit facility contains covenants requiring us to achieve certain financial and operating results and maintain compliance
with specified financial ratios. Our ability to meet the financial covenants or requirements in our credit facility may be affected
by events beyond our control, and we may not be able to satisfy such covenants and requirements. A breach of these covenants
or our inability to comply with the financial ratios, tests or other restrictions contained in our facility could result in an event of
default under this facility. Upon the occurrence of an event of default under our credit facility, and the expiration of any grace
periods, the lenders could elect to declare all amounts outstanding under the facility, together with accrued interest, to be
immediately due and payable. If this were to occur, our assets may not be sufficient to fully repay the amounts due under this
facility or our other indebtedness.
Unfavorable changes in foreign exchange rates may harm our business.
Several of our operating companies have transactions and balances denominated in currencies other than the U.S. dollar. Most
of these transactions and balances are denominated in euros, Canadian dollars, British pounds or Danish kroner. Sales by our
operating companies whose functional currency is not the U.S. dollar represented 17% and 20% of our total net revenues for the
years ended December 31, 2017 and 2016, respectively. Unfavorable changes in exchange rates between the U.S. dollar and
those currencies could significantly reduce our reported revenues and earnings.
We export a significant portion of our products. Difficulties associated with the export of our products could harm our business.
Sales to customers outside the U.S. by our businesses located in the U.S. account for a significant portion of our net revenues.
These sales accounted for 11% of our net revenues for the year ended December 31, 2017 and 12% for the year ended
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
13
December 31, 2016. We are subject to risks that could limit our ability to export our products or otherwise reduce the
demand for these products in our foreign markets. Such risks include, without limitation, the following:
• unfavorable changes in or noncompliance with U.S. and other jurisdictions’ export requirements;
• restrictions on the export of technology and related products;
• unfavorable changes in or noncompliance with U.S. and other jurisdictions’ export policies to certain countries;
• unfavorable changes in the import policies of our foreign markets; and
• a general economic downturn in our foreign markets.
The occurrence of any of these events could reduce the foreign demand for our products or could limit our ability to export our
products and, therefore, could have a material negative effect on our future sales and earnings.
Economic, political and other risks associated with our international operations could adversely affect our business.
As of and for the year ended December 31, 2017, 20% of our net revenues and 18% of our long-lived assets, excluding goodwill
and intangibles, were attributable to operations outside the U.S. We expect our international operations to contribute materially
to our business for the foreseeable future. Our international operations are subject to varying degrees of risk inherent in doing
business outside the U.S. including, without limitation, the following:
• adverse changes in a specific country’s or region’s political or economic conditions, particularly in emerging markets;
• oil price volatility;
• trade protection measures and import or export requirements;
• subsidies or increased access to capital for firms that are currently, or may emerge as, competitors in countries in
which we have operations;
• partial or total expropriation;
• potentially negative consequences from changes in tax laws;
• difficulty in staffing and managing widespread operations;
• differing labor regulations;
• differing protection of intellectual property; and
• differing and unexpected changes in regulatory requirements.
Our growth strategy includes acquisitions. We may not be able to identify suitable acquisition candidates, complete
acquisitions or integrate acquisitions successfully.
Our future growth is likely to depend to some degree on our ability to acquire and successfully integrate new businesses.
We intend to seek additional acquisition opportunities, both to expand into new markets and to enhance our position in existing
markets. There are no assurances, however, that we will be able to successfully identify suitable candidates, negotiate appro-
priate terms, obtain financing on acceptable terms, complete proposed acquisitions, successfully integrate acquired busi-
nesses or expand into new markets. Once acquired, operations may not achieve anticipated levels of revenues or profitability.
Acquisitions involve risks, including difficulties in the integration of the operations, technologies, services and products of the
acquired companies and the diversion of management’s attention from other business concerns. Although our management
will endeavor to evaluate the risks inherent in any particular transaction, there are no assurances that we will properly ascer-
tain all such risks. In addition, prior acquisitions have resulted, and future acquisitions could result, in the incurrence of sub-
stantial additional indebtedness and other expenses. Future acquisitions may also result in potentially dilutive issuances of
equity securities. Difficulties encountered with acquisitions may have a material adverse effect on our business, financial
condition and results of operations.
Our technology is important to our success and our failure to protect this technology could put us at a competitive
disadvantage.
Many of our products rely on proprietary technology; therefore we believe that the development and protection of intellectual
property rights through patents, copyrights, trade secrets, trademarks, confidentiality agreements and other contractual pro-
visions are important to the future success of our business. Despite our efforts to protect proprietary rights, unauthorized
parties or competitors may copy or otherwise obtain and use our products or technology. Actions to enforce these rights may
result in substantial costs and diversion of resources, and we make no assurances that any such actions will be successful.
Product liability, insurance risks and increased insurance costs could harm our operating results.
Our business exposes us to product liability risks in the design, manufacturing and distribution of our products. In addition,
certain of our products are used in hazardous environments. We currently have product liability insurance; however, we may
not be able to maintain our insurance at a reasonable cost or in sufficient amounts to adequately protect us against losses.
We also maintain other insurance policies, including directors’ and officers’ liability insurance. We believe we have adequately
accrued estimated losses, principally related to deductible amounts under our insurance policies, with respect to all
14
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
product liability and other claims, based upon our past experience and available facts. However, a successful product liability or
other claim or series of claims brought against us could have a material adverse effect on our business, financial condition
and results of operations. In addition, a significant increase in our insurance costs could have an adverse impact on our
operating results.
Our operating results could be adversely affected by a reduction of business with our large customers.
In some of our businesses, we derive a significant amount of revenue from large customers. The loss or reduction of any sig-
nificant contracts with any of these customers could reduce our revenues and cash flows. Additionally, many of our customers
are government entities. In many situations, government entities can unilaterally terminate or modify our existing contracts
without cause and without penalty to the government agency.
We face intense competition. If we do not compete effectively, our business may suffer.
We face intense competition from numerous competitors. Our products compete primarily on the basis of product quality,
performance, innovation, technology, price, applications expertise, system and service flexibility, distribution channel access
and established customer service capabilities. We may not be able to compete effectively on all of these fronts or with all of
our competitors. In addition, new competitors may emerge, and product lines may be threatened by new technologies or
market trends that reduce the value of these product lines. To remain competitive, we must develop new products, respond
to new technologies and enhance our existing products in a timely manner. We anticipate that we may have to adjust prices
to stay competitive.
Changes in the supply of, or price for, raw materials, parts and components used in our products could affect our business.
The availability and prices of raw materials, parts and components are subject to curtailment or change due to, among other
things, suppliers’ allocations to other purchasers, interruptions in production by suppliers, changes in exchange rates and pre-
vailing price levels. Some high-performance components for digital imaging products may be in short supply and/or suppliers
may have occasional difficulty manufacturing these components to meet our specifications. In addition, some of our products
are provided by sole source suppliers. Any change in the supply of, or price for, these parts and components, as well as any
increases in commodity prices, particularly copper, could affect our business, financial condition and results of operations.
Environmental compliance costs and liabilities could increase our expenses and adversely affect our financial condition.
Our operations and properties are subject to laws and regulations relating to environmental protection, including air emis-
sions, water discharges, waste management and workplace safety. These laws and regulations can result in the imposition of
substantial fines and sanctions for violations and could, in certain instances, require the installation of pollution control equip-
ment or operational changes to limit pollution emissions and/or decrease the likelihood of accidental hazardous substance
releases. We must conform our operations and properties to these laws and adapt to regulatory requirements in the countries
in which we operate as these requirements change.
We use and generate hazardous substances and wastes in some of our operations and, as a result, could be subject to poten-
tially material liabilities relating to the investigation and clean-up of contaminated properties and to claims alleging personal
injury. We have experienced, and expect to continue to experience, costs relating to compliance with environmental laws and
regulations. In connection with our acquisitions, we may assume significant environmental liabilities, some of which we may
not be aware of at the time of acquisition. In addition, new laws and regulations, stricter enforcement of existing laws and reg-
ulations, the discovery of previously unknown contamination or the imposition of new clean-up requirements could require us
to incur costs or become the basis for new or increased liabilities that could have a material adverse effect on our business,
financial condition and results of operations.
Some of the industries in which we operate are cyclical, and, accordingly, our business is subject to changes in the economy.
Some of the business areas in which we operate are subject to specific industry and general economic cycles. Certain busi-
nesses are subject to industry cycles, including but not limited to, the industrial and energy markets. Accordingly, a downturn
in these or other markets in which we participate could materially adversely affect us. If demand changes and we fail to
respond accordingly, our results of operations could be materially adversely affected. The business cycles of our different
operations may occur contemporaneously. Consequently, the effect of an economic downturn may have a magnified negative
effect on our business.
Our goodwill and intangible assets are a significant amount of our total assets, and any write-off of our intangible assets
would negatively affect our results of operations.
Our total assets reflect substantial intangible assets, primarily goodwill. At December 31, 2017, goodwill totaled $8.8 billion
compared to $6.9 billion of stockholders’ equity, and represented 62% of our total assets of $14.3 billion. The goodwill results
from our acquisitions, representing the excess of cost over the fair value of the net assets we have acquired. We assess at
least annually whether there has been an impairment in the value of our goodwill and indefinite economic life intangible
assets. If future operating performance at one or more of our business units were to fall significantly below current levels,
if competing or alternative technologies emerge, if interest rates rise or if business valuations decline, we could incur a
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
15
non-cash charge to operating earnings. Any determination requiring the write-off of a significant portion of goodwill or
unamortized intangible assets would negatively affect our results of operations, the effect of which could be material.
We depend on our ability to develop new products, and any failure to develop or market new products could adversely affect
our business.
The future success of our business will depend, in part, on our ability to design and manufacture new competitive products and
to enhance existing products so that we maintain our margin profile. This product development may require substantial internal
investment. There can be no assurance that unforeseen problems will not occur with respect to the development, performance
or market acceptance of new technologies or products or that we will otherwise be able to successfully develop and market new
products. Failure of our products to gain market acceptance or our failure to successfully develop and market new products
could reduce our margins, which would have an adverse effect on our business, financial condition and results of operations.
We rely on information and technology for many of our business operations which could fail and cause disruption to our
business operations.
Our business operations are dependent upon information technology networks and systems to securely transmit, process
and store electronic information and to communicate among our locations around the world and with clients and vendors.
A shutdown of, or inability to access, one or more of our facilities, a power outage or a failure of one or more of our informa-
tion technology, telecommunications or other systems could significantly impair our ability to perform such functions on a
timely basis. Computer viruses, cyber-attacks, other external hazards and human error could result in the misappropriation
of assets or sensitive information, corruption of data or operational disruption. If sustained or repeated, such a business
interruption, system failure, service denial or data loss and damage could result in a deterioration of our ability to perform
necessary business functions.
A breach in the security of our software could harm our reputation, result in a loss of current and potential customers, and
subject us to material claims, which could materially harm our operating results and financial condition.
If our security measures are breached, an unauthorized party may obtain access to our data or our users’ or customers’ data.
In addition, cyber-attacks and similar acts could lead to interruptions and delays in customer processing or a loss or breach of
customers’ data. Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems
change frequently and often are not recognized until launched against a target, we may be unable to anticipate these tech-
niques or to implement adequate preventative measures. The risk that these types of events could seriously harm our business
is likely to increase as we expand the number of web-based products and services we offer, and operate in more countries.
Regulatory authorities around the world have adopted and are considering further adoptions of legislative and regulatory pro-
posals concerning data protection. In addition the interpretation and application of consumer and data protection laws in the
United States, Europe and elsewhere are often uncertain and in flux. It is possible that these laws may be interpreted and
applied in a manner that is inconsistent with our data practices. If so, in addition to the possibility of fines, this could result
in an order requiring that we change our data practices, which could have an adverse effect on our business and results
of operations.
Any security breaches for which we are, or are perceived to be, responsible, in whole or in part, could subject us to legal
claims or legal proceedings, including regulatory investigations, which could harm our reputation and result in significant
litigation costs and damage awards or settlement amounts. Any imposition of liability, particularly liability that is not covered
by insurance or is in excess of insurance coverage, could materially harm our operating results and financial condition.
Security breaches also could cause us to lose current and potential customers, which could have an adverse effect on our
business. Moreover, we might be required to expend significant financial and other resources to protect further against
security breaches or to rectify problems caused by any security breach.
Any business disruptions due to political instability, armed hostilities, incidents of terrorism or natural disasters could
adversely impact our financial performance.
If terrorist activity, armed conflict, political instability or natural disasters occur in the U.S. or other locations, such events may
negatively impact our operations, cause general economic conditions to deteriorate or cause demand for our products to
decline. A prolonged economic slowdown or recession could reduce the demand for our products, and therefore, negatively
affect our future sales and profits. Any of these events could have a significant impact on our business, financial condition or
results of operations.
16
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
ITEM 1B | UNRESOLVED STAFF COMMENTS
None
ITEM 2 | PROPERTIES
Our corporate offices, consisting of 29,000 square feet of leased space, are located at 6901 Professional Parkway East, Sarasota,
Florida. We have 128 principal locations around the world to support our operations, of which 49 are manufacturing, assembly
and testing facilities, and the remaining 79 locations provide sales, programming, service and administrative support functions.
We consider our facilities to be in good operating condition and adequate for their present use and believe we have sufficient
capacity to meet our anticipated operating requirements.
The following table summarizes the size, location and usage of our principal properties as of December 31, 2017 (amounts in
thousands of square feet).
Segment
RF Technology
Medical & Scientific Imaging
Industrial Technology
Energy Systems & Controls
Region
U.S.
Canada
Europe
Asia-Pacific
U.S.
Canada
Europe
Asia-Pacific
Mexico
U.S.
Canada
Europe
Asia-Pacific
Mexico
U.S.
Canada
Europe
Asia-Pacific
Office
Leased
1,163
30
82
116
325
—
68
21
—
18
36
13
21
—
—
—
29
—
Office & Manufacturing
Leased
Owned
108
—
—
—
275
140
28
—
43
260
—
136
—
60
322
56
20
28
—
—
16
—
120
—
—
—
—
478
—
43
—
—
—
—
128
33
ITEM 3 | LEGAL PROCEEDINGS
Information pertaining to legal proceedings can be found in Note 12 to the Consolidated Financial Statements included in this
Annual Report, and is incorporated by reference herein.
ITEM 4 | MINE SAFETY DISCLOSURES
None
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
17
PART II
ITEM 5 | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock trades on the NYSE under the symbol “ROP.” The table below sets forth the range of high and low sales
prices for our common stock as reported by the NYSE as well as cash dividends declared during each of our 2017 and 2016
quarters.
2017
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
2016
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
High
Low
$267.83
247.54
235.50
214.44
$ 188.04
182.84
184.66
187.56
$243.45
226.81
204.62
183.74
$ 167.91
163.33
164.77
158.89
Cash
Dividends
Declared
$0.4125
0.35
0.35
0.35
$ 0.35
0.30
0.30
0.30
Based on information available to us and our transfer agent, we believe that as of February 16, 2018 there were 136 record
holders of our common stock.
Dividends—We have declared a cash dividend in each quarter since our February 1992 initial public offering and we have annually
increased our dividend rate since our initial public offering. In December 2017, our Board of Directors increased the quarterly
dividend paid January 23, 2018 to $0.4125 per share from $0.35 per share, an increase of 18%. This is the twenty-fifth consecu-
tive year in which Roper has increased its dividend. The timing, declaration and payment of future dividends will be at the sole
discretion of our Board of Directors and will depend upon our profitability, financial condition, capital needs, future prospects
and other factors deemed relevant by our Board of Directors.
Recent Sales of Unregistered Securities—In 2017, there were no sales of unregistered securities.
Performance Graph—This performance graph shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed
to be incorporated by reference into any of our filings under the Securities Act of 1933, as amended, or under the Exchange Act.
The following graph compares, for the five year period ended December 31, 2017, the cumulative total stockholder return for our
common stock, the Standard and Poor’s 500 Stock Index (the “S&P 500”) and the Standard and Poor’s 500 Industrials Index (the
“S&P 500 Industrials”). Measurement points are the last trading day of each of our fiscal years ended December 31, 2012, 2013,
2014, 2015, 2016 and 2017. The graph assumes that $100 was invested on December 31, 2012 in our common stock, the S&P 500
and the S&P 500 Industrials and assumes reinvestment of any dividends. The stock price performance on the following graph is
not necessarily indicative of future stock price performance.
Roper Technologies, Inc.
S&P 500
S&P 500 Industrials
12/31/12
$100.00
100.00
100.00
12/31/13
$124.89
132.39
140.68
12/31/14
$141.61
150.51
154.50
12/31/15
$172.94
152.59
150.59
12/31/16
$167.96
170.84
178.99
12/31/17
$239.15
208.14
216.64
18
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
$250
$200
$150
$100
12/31/12
12/31/13
12/31/14
12/31/15
12/31/16
12/31/17
Roper Technologies, Inc.
S&P 500
S&P 500 Industrials
The information set forth in Item 12 under the heading “Securities Authorized for Issuance under Equity Compensation Plans”
is incorporated herein by reference.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
19
ITEM 6 | SELECTED FINANCIAL DATA
You should read the table below in conjunction with “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and our Consolidated Financial Statements and related notes included in this Annual Report
(amounts in thousands, except per share data).
Operations data:
Net revenues
Gross profit
Income from operations
Net earnings(6)
Per share data:
Basic earnings per share
Diluted earnings per share
Dividends declared per share
Balance sheet data:
Working capital(7)
Total assets(8)
Long-term debt, net of current portion(8)
Stockholders’ equity
As of and for the Years ended December 31,
2017(1)
2016(2)
2015(3)
2014(4)
2013(5)
$ 4,607,471
2,864,796
1,210,244
971,772
$ 3,789,925
2,332,410
1,054,563
658,645
$ 3,582,395
2,164,646
1,027,918
696,067
$3,549,494
2,101,899
999,473
646,033
$3,238,128
1,882,928
842,361
538,293
$
$
9.51
9.39
1.4625
$ (270,007)
14,316,413
4,354,611
6,863,564
$
$
$
6.50
6.43
1.2500
331,229
14,324,927
5,808,561
5,788,865
$
$
$
6.92
6.85
1.0500
$
$
6.47
6.40
0.8500
$
$
5.43
5.37
0.6950
897,919
10,168,365
3,264,417
5,298,947
$ 884,158
8,400,185
2,190,282
4,755,360
$ 730,246
8,169,120
2,437,975
4,213,050
(1) Includes results from the acquisitions of Phase Technology from June 21, 2017, Handshake Software, Inc. from August 4, 2017, Workbook
Software A/S from September 15, 2017 and Onvia, Inc. from November 17, 2017.
(2) Includes results from the acquisitions of CliniSys Group Ltd. from January 7, 2016, PCI Medical Inc. from March 17, 2016, GeneInsight Inc.
from April 1, 2016, iSqFt Holdings Inc. (d/b/a ConstructConnect) from October 31, 2016, UNIConnect LC from November 10, 2016 and
Deltek, Inc. from December 28, 2016.
(3) Includes results from the acquisitions of Strata Decision Technologies LLC from January 21, 2015, SoftWriters Inc. from February 9, 2015,
Data Innovations LLC from March 4, 2015, On Center Software LLC from July 20, 2015, RF IDeas Inc. from September 1, 2015, Atlantic
Health Partners LLC from September 4, 2015, Aderant Holdings Inc. from October 21, 2015, Atlas Database Software Corp. from October 26,
2015, Black Diamond Advanced Technologies through March 20, 2015 and Abel Pumps through October 2, 2015.
(4) Includes results from the acquisitions of Foodlink Holdings Inc. from July 2, 2014, Innovative Product Achievements LLC from August 5,
2014, Strategic Healthcare Programs Holdings LLC from August 14, 2014.
(5) Includes results from the acquisitions of Managed Health Care Associates Inc. from May 1, 2013 and Advanced Sensors Ltd. from
October 4, 2013.
(6) The Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed into U.S. law on December 22, 2017, which was prior to the end of the
Company’s 2017 reporting period and resulted in a one-time net income tax benefit of $215.4 million.
(7) At December 31, 2017, there were $799 million of senior notes, net of debt issuance costs, due October 1, 2018, and at December 31, 2016,
there were $399 million of senior notes, net of debt issuance costs, due November 15, 2017, thus requiring classification as short-term
debt, included in working capital.
(8) Total assets and Long-term debt, net of current portion for 2013 and 2014 have been adjusted due to the retrospective adoption of an
accounting standard update which requires that our senior notes be shown net of debt issuance costs. The adjustment amounts were
$12,749 and $15,861 for the years ended December 31, 2014 and 2013, respectively.
ITEM 7 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
You should read the following discussion in conjunction with “Selected Financial Data” and our Consolidated Financial Statements
and related notes included in this Annual Report.
OVERVIEW
We are a diversified technology company. We operate businesses that design and develop software (both license and
software-as-a-service) and engineered products and solutions for a variety of niche end markets.
We pursue consistent and sustainable growth in earnings and cash flow by emphasizing continuous improvement in the
operating performance of our existing businesses and by acquiring other carefully selected businesses. Our acquisitions have
represented both additions to existing businesses and new strategic platforms.
20
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
APPLICATION OF CRITICAL ACCOUNTING POLICIES
Our Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United
States (“GAAP”). A discussion of our significant accounting policies can also be found in the notes to our Consolidated Financial
Statements for the year ended December 31, 2017 included in this Annual Report.
GAAP offers acceptable alternative methods for accounting for certain issues affecting our financial results, such as determin-
ing inventory cost, depreciating long-lived assets and recognizing revenue. We have not changed the application of acceptable
accounting methods or the significant estimates affecting the application of these principles in the last three years in a manner
that had a material effect on our financial statements.
The preparation of financial statements in accordance with GAAP requires the use of estimates, assumptions, judgments and
interpretations that can affect the reported amounts of assets, liabilities, revenues and expenses, the disclosure of contingent
assets and liabilities and other supplemental disclosures.
The development of accounting estimates is the responsibility of our management. Our management discusses those areas
that require significant judgments with the Audit Committee of our Board of Directors. The Audit Committee has reviewed all
financial disclosures in our annual filings with the SEC. Although we believe the positions we have taken with regard to uncer-
tainties are reasonable, others might reach different conclusions and our positions can change over time as more information
becomes available. If an accounting estimate changes, its effects are accounted for prospectively or through a cumulative catch
up adjustment.
Our most significant accounting uncertainties are encountered in the areas of accounts receivable collectibility, inventory valua-
tion, future warranty obligations, revenue recognition (percentage-of-completion), income taxes and goodwill and indefinite-lived
impairment analyses. These issues affect each of our business segments and are evaluated using a combination of historical
experience, current conditions and relatively short-term forecasting.
Accounts receivable collectibility is based on the economic circumstances of customers and credits given to customers after
shipment of products, including in certain cases credits for returned products. Accounts receivable are regularly reviewed to
determine customers who have not paid within agreed upon terms, whether these amounts are consistent with past experi-
ences, what historical experience has been with amounts deemed uncollectible and the impact that economic conditions
might have on collection efforts in general and with specific customers. The returns and other sales credit allowance is an
estimate of customer returns, exchanges, discounts or other forms of anticipated concessions and is treated as a reduction
in revenue. The returns and other sales credits histories are analyzed to determine likely future rates for such credits. At
December 31, 2017, our allowance for doubtful accounts receivable was $10.3 million and our allowance for sales returns and
sales credits was $2.4 million, for a total of $12.7 million, or 1.9% of total gross accounts receivable, as compared to a total
of $14.5 million, or 2.3% of total gross accounts receivable, at December 31, 2016. This percentage is influenced by the risk
profile of the underlying receivables, and the timing of write-offs of accounts deemed uncollectible.
We regularly compare inventory quantities on hand against anticipated future usage, which we determine as a function of his-
torical usage or forecasts related to specific items in order to evaluate obsolescence and excessive quantities. When we use
historical usage, this information is also qualitatively compared to business trends to evaluate the reasonableness of using his-
torical information as an estimate of future usage. At December 31, 2017, inventory reserves for excess and obsolete inventory
were $38.1 million, or 15.7% of gross inventory cost, as compared to $37.2 million, or 17.0% of gross inventory cost, at
December 31, 2016. The inventory reserve as a percent of gross inventory cost will continue to fluctuate based upon specific
identification of reserves needed based upon changes in our business as well as the physical disposal of obsolete inventory.
Most of our product-based revenues are covered by warranty provisions that generally provide for the repair or replacement of
qualifying defective items for a specified period after the time of sale, typically 12 to 24 months. Future warranty obligations are
evaluated using, among other factors, historical cost experience, product evolution and customer feedback. Our expense for
warranty obligations was less than 1% of net revenues for each of the years ended December 31, 2017, 2016 and 2015.
Revenues related to the use of the percentage-of-completion method of accounting are dependent on total costs incurred com-
pared with total estimated costs for a project. During the years ended December 31, 2017, 2016 and 2015 we recognized revenue
of $249 million, $241 million and $253 million, respectively, using this method. Percentage-of-completion is used primarily for
major turn-key, longer term toll and traffic and energy projects and installations of large software application projects. At
December 31, 2017, $253 million of revenue related to unfinished percentage-of-completion contracts had yet to be recognized.
Income taxes can be affected by estimates of whether and within which jurisdictions future earnings will occur and if, how and
when cash is repatriated to the U.S., combined with other aspects of an overall income tax strategy. Additionally, taxing juris-
dictions could retroactively disagree with our tax treatment of certain items, and some historical transactions have income tax
effects going forward. Accounting rules require these future effects to be evaluated using current laws, rules and regulations,
each of which can change at any time and in an unpredictable manner. During 2017, our effective income tax rate was 6.1%, as
compared to the 2016 rate of 30.0%. The decrease was due primarily to the recognition of a $215 million net income tax benefit
related to the Tax Act as well as increased excess tax benefits related to equity compensation in 2017 as compared to 2016.
We expect the effective tax rate for 2018 to be between 21% and 23%.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
21
We account for goodwill in a purchase business combination as the excess of the cost over the estimated fair value of net
assets acquired. Goodwill, which is not amortized, is tested for impairment on an annual basis in conjunction with our annual
forecast process during the fourth quarter (or an interim basis 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).
When testing goodwill for impairment, we have the option to first assess qualitative factors to determine whether the existence
of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting
unit is less than its carrying amount. If we elect to perform a qualitative assessment and determine that an impairment is more
likely than not, we are then required to perform the quantitative impairment test; otherwise, no further analysis is required.
Under the qualitative assessment, we consider various qualitative factors, including macroeconomic conditions, relevant indus-
try and market trends, cost factors, overall financial performance, other entity-specific events and events affecting the report-
ing unit that could indicate a potential change in the fair value of our reporting unit or the composition of its carrying values.
We also consider the specific future outlook for the reporting unit.
We also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.
The quantitative assessment utilizes both an income approach (discounted cash flows) and a market approach consisting of a
comparable company earnings multiples methodology to estimate the fair value of a reporting unit. To determine the reason-
ableness of the estimated fair values, we review the assumptions to ensure that neither the income approach nor the market
approach provides significantly different valuations. If the estimated fair value exceeds the carrying value, no further work is
required and no impairment loss is recognized. If the carrying value exceeds the estimated fair value, a non-cash impairment
loss is recognized in the amount of that excess.
Key assumptions used in the income and market approaches are updated when the analysis is performed for each reporting
unit. Various assumptions are utilized including forecasted operating results, strategic plans, economic projections, antici-
pated future cash flows, the weighted-average cost of capital, comparable transactions, market data and earnings multiples.
While we use reasonable and timely information to prepare our cash flow and discount rate assumptions, actual future cash
flows or market conditions could differ significantly and could result in future non-cash impairment charges related to
recorded goodwill balances.
Recently acquired reporting units generally represent a higher inherent risk of impairment, which typically decreases as the
businesses are integrated into our enterprise. Negative industry or economic trends, disruptions to our business, actual results
significantly below projections, unexpected significant changes or planned changes in the use of the assets, divestitures and
market capitalization declines may have a negative effect on the fair value of our reporting units.
We have 33 reporting units with individual goodwill amounts ranging from zero to $2.3 billion. In 2017, we performed our annual
impairment test in the fourth quarter for all reporting units. We conducted our analysis qualitatively and assessed whether it
was more likely than not that the respective fair value of these reporting units was less than the carrying amount. We deter-
mined that impairment of goodwill was not likely in 31 of our reporting units and thus we were not required to perform a quan-
titative analysis for these reporting units. For the remaining two reporting units, the Company performed its quantitative
analysis and concluded that the fair value of each of these two reporting units was substantially in excess of its carrying value,
with no impairment indicated as of October 1, 2017.
Business combinations can also result in other intangible assets being recognized. Amortization of intangible assets, if applica-
ble, occurs over their estimated useful lives. Trade names that are determined to have an indefinite useful economic life are not
amortized, but separately tested for impairment during the fourth quarter of the fiscal year or on an interim basis if an event
occurs that indicates the fair value is more likely than not below the carrying value. We first qualitatively assess whether the
existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of the
indefinite-lived trade name is less than its carrying amount. If necessary, we conduct a quantitative review using the relief-
from-royalty method, which we believe to be an acceptable methodology due to its common use by valuation specialists in
determining the fair value of intangible assets. This methodology assumes that, in lieu of ownership, a third-party would be
willing to pay a royalty in order to exploit the related benefits of these assets. The fair value of each trade name is determined
by applying a royalty rate to a projection of net revenues discounted using a risk-adjusted rate of capital. Each royalty rate is
determined based on the profitability of the trade name to which it relates and observed market royalty rates. Revenue growth
rates are determined after considering current and future economic conditions, recent sales trends, discussions with custom-
ers, planned timing of new product launches or other variables. Trade names resulting from recent acquisitions generally rep-
resent the highest risk of impairment, which typically decreases as the businesses are integrated into our enterprise and
positioned for improved future sales growth.
The assessment of fair value for impairment purposes requires significant judgments to be made by management. Although
our forecasts are based on assumptions that are considered reasonable by management and consistent with the plans and
estimates management uses to operate the underlying businesses, there is significant judgment in determining the expected
results attributable to the reporting units. Changes in estimates or the application of alternative assumptions could produce
significantly different results. No impairment resulted from the annual reviews performed in 2017.
We evaluate whether there has been an impairment of identifiable intangible assets with definite useful economic lives, or of
the remaining life of such assets, when certain indicators of impairment are present. In the event that facts and circumstances
22
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
indicate that the cost or remaining period of amortization of any asset may be impaired, an evaluation of recoverability would be
performed. If an evaluation is required, the estimated future gross, undiscounted cash flows associated with the asset would be
compared to the asset’s carrying amount to determine if a write-down to fair value or a revision in the remaining amortization
period is required.
RESULTS OF OPERATIONS
The following table sets forth selected information for the years indicated. Dollar amounts are in thousands and percentages
are of net revenues. Percentages may not foot due to rounding.
Net revenues:
RF Technology(1)
Medical & Scientific Imaging(2)
Industrial Technology(3)
Energy Systems & Controls (4)
Total
Gross margin:
RF Technology
Medical & Scientific Imaging
Industrial Technology
Energy Systems & Controls
Total
Segment operating margin:
RF Technology
Medical & Scientific Imaging
Industrial Technology
Energy Systems & Controls
Total
Corporate administrative expenses
Income from continuing operations
Interest expense, net
Other income/(expense)
Income from continuing operations before taxes
Income taxes
Net earnings
Years ended December 31,
2017
2016
2015
$1,862,126
1,410,349
783,707
551,289
$1,210,264
1,362,813
706,625
510,223
$1,033,951
1,215,318
745,381
587,745
$4,607,471
$3,789,925
$3,582,395
61.1%
72.0
50.6
57.4
62.2%
25.7%
34.5
30.0
27.4
29.3%
(3.1)%
26.3
(3.9)
0.1
22.5
(1.4)
21.1%
56.7%
73.2
50.6
57.1
61.5%
30.8%
35.0
28.7
25.4
31.2%
(3.4)%
27.8
(2.9)
(0.1)
24.8
(7.4)
17.4%
53.4%
74.0
49.8
58.1
60.4%
30.2%
36.4
28.8
27.6
31.6%
(2.9)%
28.7
(2.4)
1.6
28.0
(8.5)
19.4%
(1) Includes results from the acquisitions of Foodlink Holdings Inc. from July 2, 2014, On Center Software LLC from July 20, 2015, RF Ideas Inc. from
September 1, 2015, Aderant Holdings Inc. from October 21, 2015, Black Diamond Advanced Technologies through March 20, 2015, ConstructConnect from
October 31, 2016, Deltek, Inc. from December 28, 2016, Handshake Software, Inc. from August 4, 2017, Workbook Software A/S from September 15, 2017
and Onvia, Inc. from November 17, 2017.
(2) Includes results from the acquisitions of Strata Decision Technologies LLC from January 21, 2015, SoftWriters Inc. from February 9, 2015, Data Innovations
LLC from March 4, 2015, Atlantic Health Partners LLC from September 4, 2015, Atlas Database Software Corp. from October 26, 2015, CliniSys from
January 7, 2016, PCI Medical from March 17, 2016, GeneInsight from April 1, 2016 and UNIConnect from November 10, 2016.
(3) Includes results from Abel Pumps through October 2, 2015.
(4) Includes results from the acquisition of Phase Technology from June 21, 2017.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
23
YEAR ENDED DECEMBER 31, 2017 COMPARED TO YEAR ENDED DECEMBER 31, 2016
Net revenues for the year ended December 31, 2017 were $4.61 billion as compared to $3.79 billion for the year ended
December 31, 2016, an increase of 21.6%. The increase was the result of contributions from acquisitions of 16.3%, organic
growth of 5.3% and no impact from foreign exchange.
In our RF Technology segment, net revenues for the year ended December 31, 2017 increased by $651.9 million or 54% over
the year ended December 31, 2016. Acquisitions accounted for 51% and organic revenues increased by 3%. The increase in
organic revenues was due primarily to growth in our software businesses. Gross margin was 61.1% for the year ended
December 31, 2017 as compared to 56.7% for the year ended December 31, 2016, due primarily to an increased percentage of
revenues from our software businesses, which have a higher gross margin. Selling, general and administrative (“SG&A”)
expenses as a percentage of revenues in the year ended December 31, 2017 increased to 35.3%, as compared to 25.9% in the
year ended December 31, 2016, due primarily to an increased percentage of revenues from our software businesses, which
have a higher SG&A structure, including amortization of acquired intangibles. The resulting operating margin was 25.7% in
2017 as compared to 30.8% in 2016.
Our Medical & Scientific Imaging segment reported a $47.5 million or 3% increase in net revenues for the year ended
December 31, 2017 over the year ended December 31, 2016, all of which was attributable to organic growth. The growth in
organic revenues was due primarily to increased sales in our medical products businesses, led by NDI, and our alternate site
healthcare businesses. Gross margin decreased to 72.0% for the year ended December 31, 2017 from 73.2% for the year
ended December 31, 2016, due primarily to an unfavorable sales mix at both our software and medical products businesses.
SG&A expenses as a percentage of net revenues decreased to 37.5% in the year ended December 31, 2017, as compared to
38.2% in the year ended December 31, 2016, due primarily to operating leverage on higher sales. The resulting operating
margin was 34.5% in the year ended December 31, 2017 as compared to 35.0% in the year ended December 31, 2016.
Net revenues for our Industrial Technology segment increased by $77.1 million or 11% for the year ended December 31, 2017
from the year ended December 31, 2016, all of which was attributable to organic growth. The growth in organic revenues was
broad-based, due primarily to our fluid handling, water meter technology and materials testing businesses. Gross margin
was consistent at 50.6% for the years ended December 31, 2017 and 2016. SG&A expenses as a percentage of net revenues
were 20.6% in the year ended December 31, 2017, as compared to 21.9% in the year ended December 31, 2016, due primarily to
operating leverage on higher sales volume. The resulting operating margin was 30.0% in the year ended December 31, 2017
as compared to 28.7% in the year ended December 31, 2016.
In our Energy Systems & Controls segment, net revenues for the year ended December 31, 2017 increased by $41.1 million or
8% from the year ended December 31, 2016. Organic sales increased by 7% and the benefit from foreign exchange and acqui-
sitions totaled 1%. The growth in organic revenues was due primarily to increased sales in pressure sensors and valves busi-
nesses serving energy markets as well as businesses serving industrial end markets. Gross margin increased to 57.4% in the
year ended December 31, 2017 as compared to 57.1% in the year ended December 31, 2016 and SG&A expenses as a percent-
age of net revenues decreased to 30.0% in the year ended December 31, 2017, as compared to 31.7% in the year ended
December 31, 2016, both of which were due to operating leverage on higher sales volume. As a result, operating margin was
27.4% in the year ended December 31, 2017 as compared to 25.4% in the year ended December 31, 2016.
Corporate expenses increased by $14.3 million to $141.8 million, or 3.1% of revenues, in 2017 as compared to $127.5 million,
or 3.4% of revenues, in 2016. The dollar increase was due primarily to increased incentive compensation and professional
services.
Interest expense increased $69.0 million, or 61.9%, for the year ended December 31, 2017 as compared to the year ended
December 31, 2016. The increase was due primarily to higher average debt balances to fund acquisitions at the end of 2016.
Other income, net, of $5.0 million for the year ended December 31, 2017 was composed primarily of a $9.4 million gain on sale
of a product line in our Energy Systems & Controls segment, offset in part by a $1.8 million charge on a minority investment
and foreign exchange losses at our non-U.S. based companies. Other expense of $1.5 million for the year ended December 31,
2016 was composed primarily of foreign exchange losses at our non-U.S. based companies, offset in part by royalty income.
During 2017, our effective income tax rate was 6.1% as compared to our 2016 rate of 30.0%. The decrease was due primarily
to the recognition of a $215 million net income tax benefit related to the Tax Act as well as increased excess tax benefits
related to equity compensation in 2017 as compared to 2016.
The following table summarizes order backlog information at December 31, 2017 and 2016 (dollar amounts in thousands).
We include in backlog only orders that are expected to be recognized as revenue within twelve months.
RF Technology
Medical & Scientific Imaging
Industrial Technology
Energy Systems & Controls
Total
24
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
2017
2016
Change
$ 991,382
467,836
110,841
102,293
$ 991,212
423,616
65,259
92,309
—%
10.4
69.8
10.8
$1,672,352
$1,572,396
6.4%
YEAR ENDED DECEMBER 31, 2016 COMPARED TO YEAR ENDED DECEMBER 31, 2015
Net revenues for the year ended December 31, 2016 were $3.79 billion as compared to $3.58 billion for the year ended
December 31, 2015, an increase of 5.8%. The increase was the result of contributions from acquisitions of 6.8%, negative
organic growth of 0.3% and a negative foreign exchange impact of 0.7%.
In our RF Technology segment, net revenues for the year ended December 31, 2016 increased by $176 million or 17% over the
year ended December 31, 2015. Acquisitions net of the divestiture of the Black Diamond Advanced Technology business added
15%, organic revenues increased by 3%, and the negative foreign exchange impact was 1%. The increase in organic revenues
was due primarily to increased sales in our software businesses, offset in part by the completion of large service contracts in
our toll and traffic businesses in 2015. Gross margin was 56.7% in 2016 as compared to 53.4% in the prior year due to product
mix in our toll and traffic businesses as well as an increased percentage of revenues at our software businesses which have
a higher gross margin. SG&A expenses as a percentage of net revenues in the year ended December 31, 2016 increased to
25.9%, as compared to 23.3% in the prior year due primarily to an increased percentage of net revenues at our software
businesses which have a higher SG&A structure. Operating margin was 30.8% in 2016 as compared to 30.2% in 2015.
Our Medical & Scientific Imaging segment reported a $147 million or 12% increase in net revenues for the year ended
December 31, 2016 over the year ended December 31, 2015. Acquisitions contributed 9%, organic revenues increased 4% and
the negative foreign exchange impact was 1%. The increase in organic revenues was due to increased sales in our medical
businesses, led by NDI and Verathon. Gross margin decreased to 73.2% in the year ended December 31, 2016 from 74.0% in
the year ended December 31, 2015, due primarily to product mix. SG&A expenses as a percentage of net revenues increased
to 38.2% in the year ended December 31, 2016 as compared to 37.7% in the year ended December 31, 2015, due to a higher
SG&A structure in our medical businesses. Operating margin was 35.0% in the year ended December 31, 2016 as compared
to 36.4% in the year ended December 31, 2015.
Net revenues for our Industrial Technology segment decreased by $39 million or 5.2% for the year ended December 31, 2016
from the year ended December 31, 2015. The divestiture of the Abel Pumps business in 2015 accounted for a negative 3.1%,
organic revenues decreased by 1.5% and the negative foreign exchange impact was 0.6%. The decrease in organic revenues
was due primarily to decreased sales in those fluid handling businesses that serve oil and gas markets, offset in part by
increased sales in our water metering business. Gross margin increased to 50.6% for the year ended December 31, 2016 as
compared to 49.8% in the year ended December 31, 2015 due to product mix. SG&A expenses as a percentage of net revenues
were 21.9%, as compared to 21.0% in the prior year, due primarily to negative leverage on lower sales volume. The resulting
operating margin was 28.7% in the year ended December 31, 2016 as compared to 28.8% in the year ended December 31, 2015.
In our Energy Systems & Controls segment, net revenues for the year ended December 31, 2016 decreased by $78 million or
13% from the year ended December 31, 2015. Organic revenues decreased by 12% due to decreased sales in oil and gas prod-
ucts, including safety systems and valves, and the negative foreign exchange impact was 1%. Gross margin decreased to
57.1% in the year ended December 31, 2016 as compared to 58.1% in the year ended December 31, 2015 and SG&A expenses
as a percentage of net revenues increased to 31.7% as compared to 30.5% in the prior year, both of which were due to nega-
tive leverage on lower sales volume. Operating margin was 25.4% in the year ended December 31, 2016 as compared to 27.6%
in the year ended December 31, 2015.
Corporate expenses increased by $24.7 million to $127.5 million, or 3.4% of net revenues, in 2016 as compared to $102.8 mil-
lion, or 2.9% of net revenues, in 2015. The increase was due primarily to increased equity compensation costs as a result of
both an increase in the number of shares granted in the current year and increases in our common stock price and increased
costs related to acquisitions.
Interest expense increased $27.3 million, or 32.5%, for the year ended December 31, 2016 as compared to the year ended
December 31, 2015. The increase was due primarily to higher average debt balances to fund current year acquisitions as well
as higher average interest rates throughout 2016.
Other expense of $1.5 million for the year ended December 31, 2016 was composed primarily of foreign exchange losses at
our non-U.S. based companies, offset in part by royalty income. Other income of $58.7 million for the year ended December
31, 2015 was composed primarily of the $70.9 million gain from the divestiture of Abel Pumps (see Note 2 of the Notes to
Consolidated Financial Statements included in this Annual Report), offset in part by a $9.5 million impairment charge on a
minority investment.
During 2016, our effective income tax rate was 30.0%, which was 60 basis points lower than the 2015 rate of 30.6%. The
decrease was due to the recognition of $15.3 million in excess tax benefits in the current year in accordance with an ASU
related to stock compensation adopted in the first quarter of 2016 (see Note 1 of the Notes to Consolidated Financial
Statements included in this Annual Report), as well as the non-recurrence of the 2015 taxable gain on the divestiture of
Abel Pumps which was partially offset by discrete tax benefits from settlements of tax matters in 2015.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
25
The following table summarizes order backlog information at December 31, 2016 and 2015 (dollar amounts in thousands).
We include in backlog only orders that are expected to be recognized as revenue within twelve months.
RF Technology
Medical & Scientific Imaging
Industrial Technology
Energy Systems & Controls
Total
2016
2015
Change
$ 991,212
423,616
65,259
92,309
$ 538,877
373,213
68,002
90,365
$1,572,396
$1,070,457
83.9%
13.5
(4.0)
2.2
46.9%
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Selected cash flows for the years ended December 31, 2017, 2016 and 2015 are as follows (in millions):
Cash provided by/(used in):
Operating activities
Investing activities
Financing activities
2017
2016
2015
$ 1,234
(210)
(1,170)
$ 964
(3,753)
2,805
$ 929
(1,698)
996
Operating activities—The increase in cash provided by operating activities in 2017 and in 2016 was primarily due to increased
earnings net of non-cash expenses and higher deferred revenue balances due to an increased percentage of revenue from
software and other subscription based products. The increase in cash provided by operating activities in 2016 was offset in
part by income tax payments in the first quarter of 2016 related to the gain on the sale of the Abel Pumps business in the
fourth quarter of 2015.
Investing activities—Cash used in investing activities during 2017, 2016 and 2015 was primarily for business acquisitions. Cash
received from investing activities in 2015 was primarily proceeds from the sale of the Abel Pumps business.
Financing activities—Cash used in/provided by financing activities in all periods presented was primarily debt repayments/
borrowings as well as dividends paid to stockholders. Cash used in financing activities during 2017 was primarily from the
pay-down of revolving debt borrowings of $660 million and the repayment of $400 million of senior notes. Cash provided by
financing activities during 2016 was primarily from the issuance of $1.2 billion of senior notes and revolving debt borrowings
for acquisitions.
Cash and cash equivalents increased as a result of the effects of foreign currency exchange rate changes during the year
ended December 31, 2017 by $59 million as compared to decreases during the years ended December 31, 2016 and 2015 of $38
million and $59 million, respectively. The increase for the year ended December 31, 2017 was due primarily to the strengthen-
ing of functional currencies of our European subsidiaries against the U.S. dollar, while the decreases for the years ended
December 31, 2016 and 2015 were due primarily to the weakening of functional currencies of our European subsidiaries against
the U.S. dollar.
Net working capital (current assets, excluding cash, less total current liabilities, excluding debt) was a negative $140 million at
December 31, 2017 compared to negative $25 million at December 31, 2016, due primarily to increased deferred revenues. This
deferred revenue increase is due to a higher percentage of revenue from software and subscription-based services along with
the impact of fair value purchase accounting resulting from 2016 acquisitions.
Total debt was $5.2 billion at December 31, 2017 (43.0% of total capital) compared to $6.2 billion at December 31, 2016 (51.8% of
total capital). Our decreased debt at December 31, 2017 compared to December 31, 2016 was due primarily to the pay-down of
revolving debt borrowings of $660 million and the repayment of $400 million of senior notes.
On September 23, 2016, we entered into a five-year unsecured credit facility (the “2016 Facility”) with JPMorgan Chase Bank, N.A.,
as administrative agent, and a syndicate of lenders, which replaced our previous unsecured credit facility, dated as of July 27,
2012, as amended as of October 28, 2015 (the “2012 Facility”). The 2016 Facility comprises a five year $2.5 billion revolving credit
facility, which includes availability of up to $150 million for letters of credit. We may also, subject to compliance with specified
conditions, request term loans or additional revolving credit commitments in an aggregate amount not to exceed $500 million.
The 2016 Facility contains various affirmative and negative covenants which, among other things, limit our ability to incur new
debt, enter into certain mergers and acquisitions, sell assets and grant liens, make restricted payments (including the payment of
dividends on our common stock) and capital expenditures, or change our line of business. We also are subject to financial cove-
nants which require us to limit our consolidated total leverage ratio and to maintain a consolidated interest coverage ratio. The
most restrictive covenant is the consolidated total leverage ratio which is limited to 3.5 to 1.
26
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
On December 2, 2016, we amended the 2016 Facility to allow the consolidated total leverage ratio be increased, no more than
twice during the term of the 2016 Facility, to 4.0 to 1 for a consecutive four quarter fiscal period per increase (or, for any portion
of such four quarter fiscal period in which the maximum would be 4.25 to 1 pursuant to the 2016 facility amendment, 4.25 to 1).
In conjunction with the Deltek acquisition (see Note 2 of the Notes to Consolidated Financial Statements included in this Annual
Report), we increased the maximum consolidated total leverage ratio covenant to 4.25 to 1 through June 30, 2017 and 4.00 to 1
through December 31, 2017.
At December 31, 2017, we had $3.9 billion of senior unsecured notes and $1.3 billion of outstanding revolver borrowings. In addi-
tion, we had $3.1 million of other debt in the form of capital leases and several smaller facilities that allow for borrowings or the
issuance of letters of credit in foreign locations to support our non-U.S. businesses. We had $75.9 million of outstanding letters
of credit at December 31, 2017, of which $33.1 million was covered by our lending group, thereby reducing our revolving credit
capacity commensurately.
We may redeem some or all of these notes at any time or from time to time, at 100% of their principal amount, plus a make-whole
premium based on a spread to U.S. Treasury securities.
We were in compliance with all debt covenants related to our credit facility throughout the years ended December 31, 2017
and 2016.
See Note 8 of the Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding
our credit facility and senior notes.
Cash and cash equivalents at our foreign subsidiaries at December 31, 2017 totaled $592 million. The Tax Act included a one-time
deemed mandatory repatriation tax on all undistributed foreign earnings, resulting in a charge of $110.7 million as of December
31, 2017. The Company will elect to pay the liability over 8 years. In addition, the introduction of a modified territorial taxation sys-
tem resulted in a one-time estimated charge of $28.7 million due to the Company’s change in its indefinite reinvestment assertion
on foreign earnings. The Company now intends to distribute all historical earnings subject to the deemed repatriation tax and has
provided for deferred taxes related to the future state and foreign tax cost to repatriate. See Note 7 of the Notes to Consolidated
Financial Statements included in this Annual Report for additional information regarding income taxes.
Capital expenditures of $48.8 million, $37.3 million and $36.3 million were incurred during 2017, 2016 and 2015, respectively.
Capitalized software expenditures of $10.8 million, $2.8 million and $2.4 million were incurred during 2017, 2016 and 2015,
respectively. The increases in 2017 as compared to 2016 was due primarily to our 2016 acquisitions. In the future, we expect the
aggregate of capital expenditures and capitalized software expenditures as a percentage of annual net revenues to be between
1.0% and 1.5%.
CONTRACTUAL CASH OBLIGATIONS AND OTHER COMMERCIAL COMMITMENTS AND CONTINGENCIES
The following tables quantify our contractual cash obligations and commercial commitments at December 31, 2017 (in thousands).
Contractual Cash Obligations(1)
Total
2018
2019
2020
2021
2022
Thereafter
Payments Due in Fiscal Year
Total debt
Senior note interest
Capital leases
Operating leases
Total
Other Commercial Commitments
$5,170,009
579,657
3,140
272,285
$800,009
129,325
1,494
61,109
$500,000
106,608
1,061
49,563
$600,000
85,025
529
42,109
$1,770,000
67,269
47
35,473
$500,000
51,822
9
26,014
$1,000,000
139,608
—
58,017
$6,025,091
$991,937
$657,232
$727,663
$1,872,789
$577,845
$1,197,625
Total
Amount
Committed
Amounts Expiring in Fiscal Year
2018
2019
2020
2021
2022
Thereafter
Standby letters of credit and bank guarantees
$
75,898
$ 28,614
$ 1,921
$
723
$
34,006
$ 10,351
$ 283
(1) We have excluded the liability for uncertain tax positions and other income tax liabilities resulting from the Tax Act considered “provisional.” See Note 7 of
the Notes to Consolidated Financial Statements included in this Annual Report.
As of December 31, 2017, we had $573.4 million of outstanding surety bonds. Certain contracts, primarily those involving public
sector customers, require us to provide a surety bond as a guarantee of its performance of contractual obligations.
We believe that internally generated cash flows and the remaining availability under our credit facility will be adequate to
finance normal operating requirements. Although we maintain an active acquisition program, any future acquisitions will be
dependent on numerous factors and it is not feasible to reasonably estimate if or when any such acquisitions will occur and
what the impact will be on our activities, financial condition and results of operations. We may also explore alternatives to
attract additional capital resources.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
27
We anticipate that our businesses will generate positive cash flows from operating activities, and that these cash flows will
permit the reduction of currently outstanding debt in accordance with the repayment schedule. However, the rate at which we
can reduce our debt during 2018 (and reduce the associated interest expense) will be affected by, among other things, the
financing and operating requirements of any new acquisitions and the financial performance of our existing companies. None
of these factors can be predicted with certainty.
OFF-BALANCE SHEET ARRANGEMENTS
At December 31, 2017 and 2016, we did not have any relationships with unconsolidated entities or financial partnerships, such
as entities often referred to as structured finance or special purpose entities, which would have been established for the
purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
RECENTLY ISSUED ACCOUNTING STANDARDS
See Note 1 of the Notes to Consolidated Financial Statements included in this Annual Report for information regarding the
effect of new accounting pronouncements on our consolidated financial statements.
ITEM 7A | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to interest rate risks on our outstanding revolving credit borrowings, and to foreign currency exchange risks on
our transactions denominated in currencies other than the U.S. dollar. We are also exposed to equity market risks pertaining to
the traded price of our common stock.
At December 31, 2017, we had $3.9 billion of fixed rate borrowings with interest rates ranging from 2.05% to 6.25%. At
December 31, 2017, the prevailing market rates for our long-term notes were between 0.05% higher and 3.85% lower than
the fixed rates on our debt instruments. Our credit facility contains a $2.5 billion variable-rate revolver with $1.27 billion of
outstanding borrowings at December 31, 2017.
Several of our businesses have transactions and balances denominated in currencies other than the U.S. dollar. Most of these
transactions or balances are denominated in euros, Canadian dollars, British pounds or Danish kroner. Net revenues recog-
nized by companies whose functional currency was not the U.S. dollar were 17% of our total revenues in 2017 and 68% of these
revenues were recognized by companies with a European functional currency. If these currency exchange rates had been 10%
different throughout 2017 compared to currency exchange rates actually experienced, the impact on our net earnings would
have been approximately 1%.
The trading price of our common stock influences the valuation of stock award grants and the effects these grants have on
our results of operations. The stock price also influences the computation of potentially dilutive common stock to determine
diluted earnings per share. The stock price also affects our employees’ perceptions of programs that involve our common
stock. We believe the quantification of the effects of these changing prices on our future earnings and cash flows is not
readily determinable.
ITEM 8 | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Financial Statements:
Page
Report of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Consolidated Balance Sheets as of December 31, 2017 and 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Consolidated Statements of Earnings for the Years ended December 31, 2017, 2016 and 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Consolidated Statements of Comprehensive Income for the Years ended December 31, 2017, 2016 and 2015 . . . . . . . . . . . . . . . 32
Consolidated Statements of Stockholders’ Equity for the Years ended December 31, 2017, 2016 and 2015 . . . . . . . . . . . . . . . . . 33
Consolidated Statements of Cash Flows for the Years ended December 31, 2017, 2016 and 2015 . . . . . . . . . . . . . . . . . . . . . . . . . 34
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Supplementary Data:
Schedule II—Consolidated Valuation and Qualifying Accounts for the Years ended December 31, 2017, 2016 and 2015 . . . . . . . 53
28
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders of Roper Technologies, Inc.:
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Roper Technologies, Inc. and its subsidiaries (the
“Company”) as of December 31, 2017, and 2016, and the related consolidated statements of earnings, of comprehensive income,
of stockholders’ equity, and of cash flows for each of the three years in the period ended December 31, 2017, including the
related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated
financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2017,
based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
k
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial posi-
tion of the Company as of December 31, 2017 and 2016, and the results of their operations and their cash flows for each of the
three years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United
States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2017, based on criteria established in Internal Control—Integrated Framework (2013) issued by
the COSO.
k
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, 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 opinions on
the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States)
(“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 audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstate-
ment, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all
material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstate-
ment of the consolidated 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 consoli-
dated 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 consolidated financial statements. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the
risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audits provide a reasonable basis for our opinions.
As described in Management’s Report on Internal Control over Financial Reporting, management has excluded acquisitions
completed in 2017 from its assessment of internal control over financial reporting as of December 31, 2017 because they were
acquired by the Company in purchase business combinations during 2017. We have also excluded acquisitions completed in
2017 from our audit of internal control over financial reporting. These acquisitions are wholly-owned subsidiaries whose total
assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting
represent less than 1% of the related consolidated financial statement amounts as of and for the year ended December 31, 2017.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
29
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 (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispo-
sitions of the assets of the company; (ii) 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 expendi-
tures of the company are being made only in accordance with authorizations of management and directors of the company; and
(iii) 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/ PricewaterhouseCoopers LLP
Certified Public Accountants
Tampa, Florida
February 23, 2018
We have served as the Company’s auditor since 2002.
30
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2017 and 2016
Assets
Cash and cash equivalents
Accounts receivable, net
Inventories, net
Income taxes receivable
Unbilled receivables
Other current assets
Total current assets
Property, plant and equipment, net
Goodwill
Other intangible assets, net
Deferred taxes
Other assets
Total assets
Liabilities and Stockholders’ Equity
Accounts payable
Accrued compensation
Deferred revenue
Other accrued liabilities
Income taxes payable
Current portion of long-term debt, net
Total current liabilities
Long-term debt, net of current portion
Deferred taxes
Other liabilities
Total liabilities
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.01 par value per share; 1,000 shares authorized; none outstanding
Common stock, $0.01 par value per share; 350,000 shares authorized; 104,379 shares
issued and 102,493 outstanding at December 31, 2017 and 103,578 shares issued and
101,672 outstanding at December 31, 2016
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, 1,886 shares at December 31, 2017 and 1,906 shares at December 31, 2016
Total stockholders’ equity
Total liabilities and stockholders’ equity
See accompanying notes to consolidated financial statements.
2017
2016
$
671,327
641,662
204,933
24,365
143,634
73,481
1,759,402
142,535
8,820,313
3,475,218
30,726
88,219
$
757,200
619,854
181,952
31,679
129,965
55,851
1,776,501
141,318
8,647,142
3,655,843
30,620
73,503
$14,316,413
$14,324,927
$
171,073
198,020
566,447
266,574
26,351
800,944
2,029,409
4,354,611
829,657
239,172
7,452,849
$
152,067
161,730
488,399
219,339
22,762
400,975
1,445,272
5,808,561
1,178,205
104,024
8,536,062
—
—
1,044
1,602,869
5,464,571
(186,214)
(18,706)
6,863,564
1,036
1,489,067
4,642,402
(324,739)
(18,901)
5,788,865
$14,316,413
$14,324,927
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
31
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Years ended December 31, 2017, 2016 and 2015
(Dollar and share amounts in thousands, except per share data)
Net revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Income from operations
Interest expense, net
Loss on extinguishment of debt
Other income/(expense), net
Earnings before income taxes
Income taxes
Net earnings
Earnings per share:
Basic
Diluted
Weighted-average common shares outstanding:
Basic
Diluted
See accompanying notes to consolidated financial statements.
Years ended December 31,
2017
2016
2015
$4,607,471
1,742,675
$3,789,925
1,457,515
$3,582,395
1,417,749
2,864,796
1,654,552
1,210,244
180,566
—
5,045
1,034,723
62,951
2,332,410
1,277,847
1,054,563
111,559
871
(1,481)
940,652
282,007
2,164,646
1,136,728
1,027,918
84,225
—
58,652
1,002,345
306,278
$ 971,772
$ 658,645
$ 696,067
$
$
9.51
9.39
$
$
6.50
6.43
$
$
6.92
6.85
102,168
103,522
101,291
102,464
100,616
101,597
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years ended December 31, 2017, 2016 and 2015
(in thousands)
Net earnings
Other comprehensive income, net of tax:
Foreign currency translation adjustments
Unrecognized pension gain
Total other comprehensive income/(loss), net of tax
Comprehensive income
See accompanying notes to consolidated financial statements.
Years ended December 31,
2017
2016
2015
$ 971,772
$ 658,645
$ 696,067
138,525
—
138,525
(111,960)
—
(111,960)
(139,789)
(1,063)
(140,852)
$1,110,297
$ 546,685
$ 555,215
32
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Years ended December 31, 2017, 2016 and 2015
(in thousands, except per share data)
Shares
Amount
Common stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
earnings
Treasury
stock
Total
stockholders’
equity
Balances at December 31, 2014
100,126
$1,021
$ 1,325,338 $ 3,520,201
$ (71,927)
$ (19,273)
$ 4,755,360
Net earnings
Stock option exercises
Treasury stock sold
Currency translation adjustments,
net of $6,658 tax
Stock based compensation
Restricted stock activity
Stock option tax benefit,
net of shortfalls
Conversion of senior subordinated
convertible notes
Post-retirement benefit plan
adjustments
Dividends declared ($1.05 per share)
—
402
18
—
—
324
—
—
—
—
—
4
—
—
—
3
—
—
—
—
—
33,002
2,710
—
61,766
(14,697)
22,175
(11,032)
696,067
—
—
—
—
—
—
—
—
—
—
(139,789)
—
—
—
—
—
—
—
(105,738)
(1,063)
—
—
—
179
—
—
—
—
—
—
—
696,067
33,006
2,889
(139,789)
61,766
(14,694)
22,175
(11,032)
(1,063)
(105,738)
Balances at December 31, 2015
100,870
$1,028
$ 1,419,262 $ 4,110,530
$ (212,779)
$ (19,094)
$ 5,298,947
Net earnings
Stock option exercises
Treasury stock sold
Currency translation adjustments,
net of $2,570 tax
Stock based compensation
Restricted stock activity
Stock option tax benefit,
net of shortfalls
Conversion of senior subordinated
convertible notes
Dividends declared ($1.25 per share)
—
372
19
—
—
411
—
—
—
—
4
—
—
—
4
—
—
—
—
27,970
3,147
—
77,860
(17,980)
(8,081)
658,645
—
—
—
—
—
—
(13,111)
—
—
(126,773)
—
—
—
(111,960)
—
—
—
—
—
—
—
193
—
—
—
—
—
—
658,645
27,974
3,340
(111,960)
77,860
(17,976)
(8,081)
(13,111)
(126,773)
Balances at December 31, 2016
101,672
$1,036
$ 1,489,067 $ 4,642,402
$ (324,739)
$ (18,901)
$ 5,788,865
Net earnings
Stock option exercises
Treasury stock sold
Currency translation adjustments,
net of $4,899 tax
Stock based compensation
Restricted stock activity
Dividends declared ($1.4625
per share)
—
645
20
—
—
156
—
—
6
—
—
—
2
—
—
61,317
4,003
—
81,324
(32,842)
971,772
—
—
—
—
—
—
—
—
138,525
—
—
—
(149,603)
—
—
—
195
—
—
—
—
971,772
61,323
4,198
138,525
81,324
(32,840)
(149,603)
Balances at December 31, 2017
102,493
$1,044
$1,602,869 $5,464,571
$(186,214)
$(18,706)
$6,863,564
See accompanying notes to consolidated financial statements.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
33
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2017, 2016 and 2015
(in thousands)
Cash flows from operating activities:
Net earnings
Adjustments to reconcile net earnings to cash flows from operating activities:
Depreciation and amortization of property, plant and equipment
Amortization of intangible assets
Amortization of deferred financing costs
Non-cash stock compensation
Gain on disposal of a business
Gain on sale of assets
Changes in operating assets and liabilities, net of acquired businesses:
Accounts receivable
Unbilled receivables
Inventories
Accounts payable and accrued liabilities
Deferred revenue
Income taxes
Other, net
Years ended December 31,
2017
2016
2015
$ 971,772
$ 658,645
$ 696,067
49,513
295,452
7,227
83,075
—
(9,393)
(9,393
(6,673)
(13,493)
(15,363)
73,333
74,881
(256,971)
(18,878)
37,299
203,154
5,612
78,827
—
—
(20,734)
(1,202)
6,353
20,176
25,190
(47,589)
(1,946)
38,185
166,076
4,136
61,766
(70,860)
—
52,597
(21,844)
(1,150)
(8,392)
8,239
3,069
936
Cash provided by operating activities
1,234,482
963,785
928,825
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired
Capital expenditures
Capitalized software expenditures
Proceeds from disposal of a business
Proceeds from sale of assets
Other, net
Cash used in investing activities
Cash flows from financing activities:
Proceeds from senior notes
Payment of senior notes
Borrowings/(payments) under revolving line of credit, net
Principal payments on convertible notes
Debt issuance costs
Cash dividends to stockholders
Treasury stock sales
Stock award tax excess windfall benefit
Proceeds from stock based compensation, net
Redemption premium on convertible debt
Other
Cash provided by/(used in) financing activities
Effect of exchange rate changes on cash
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
(153,736)
(48,752)
(10,784)
—
10,628
(6,932)
(209,576)
—
(400,000)
(660,000)
—
—
(142,753)
4,198
—
28,487
—
51
(1,170,017)
59,238
(85,873)
757,200
(3,721,758)
(37,305)
(2,801)
—
870
8,138
(1,762,883)
(36,260)
(2,439)
105,624
1,126
(3,500)
(3,752,856)
(1,698,332)
1,200,000
—
1,750,000
(4,284)
(17,266)
(121,130)
3,340
—
9,998
(14,166)
(1,229)
2,805,263
(37,503)
(21,311)
778,511
900,000
—
180,000
(4,006)
(8,044)
(100,334)
2,889
22,228
18,312
(13,126)
(1,677)
996,242
(58,654)
168,081
610,430
Cash and cash equivalents, end of year
$ 671,327
$ 757,200
$ 778,511
Supplemental disclosures:
Cash paid for:
Interest
Income taxes, net of refunds received
Noncash investing activities:
Net assets of businesses acquired:
Fair value of assets, including goodwill
Liabilities assumed
Cash paid, net of cash acquired
See accompanying notes to consolidated financial statements.
34
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
$ 175,021
$ 104,928
$
79,225
$ 320,235
$ 329,596
$ 280,801
$ 177,276
(23,540)
$ 4,433,085
(711,327)
$1,876,984
(114,101)
$ 153,736
$ 3,721,758
$1,762,883
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2017, 2016 and 2015
(1) SUMMARY OF ACCOUNTING POLICIES
Basis of Presentation—These financial statements present consolidated information for Roper Technologies, Inc. and its
subsidiaries (“Roper,” the “Company,” “we,” “our” or “us”). All significant intercompany accounts and transactions have
been eliminated.
Nature of the Business—Roper is a diversified technology company. The Company operates businesses that design and develop
software (both license and software-as-a-service) and engineered products and solutions for a variety of niche end markets.
Recent Accounting Pronouncements—The Financial Accounting Standards Board (“FASB”) establishes changes to accounting
principles under GAAP in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification.
The Company considers the applicability and impact of all ASUs. Any ASUs not listed below were assessed and determined to
be either not applicable or are expected to have an immaterial impact on the Company’s results of operations, financial position
or cash flows.
Recently Adopted Accounting Pronouncements
In January 2017, the FASB issued an update simplifying the test for goodwill impairment. This update, effective on a prospective
basis for goodwill impairment tests performed in fiscal years beginning after December 15, 2019, eliminates Step 2 from the
goodwill impairment test. Under the amendments in the update, an entity should perform its goodwill impairment test by com-
paring the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which
the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of
goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible good-
will on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. Early adoption is
permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company elected to
early adopt this standard for its annual goodwill impairment testing during the fourth quarter of 2017. The update did not have an
impact on the Company’s results of operations, financial position or cash flows.
In July 2015, the FASB issued an update providing guidance to simplify the measurement of inventory. This update, effective
for fiscal years beginning after December 15, 2016, requires that inventory within the scope of the update be measured at the
lower of cost and net realizable value. The update did not have a material impact on the Company’s results of operations,
financial position or cash flows.
In March 2016, the FASB issued an update on stock compensation. The ASU simplifies several aspects of the accounting for
employee share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding
requirements, as well as classification in the statement of cash flows. This standard is effective for annual reporting periods
beginning after December 15, 2016. The Company elected to early adopt this standard on a prospective basis in the quarter
ended March 31, 2016. The impact of the early adoption resulted in the following:
• The Company recorded tax benefits of $15.3 million within income tax expense for the year ended December 31, 2016
related to the excess tax benefit on share-based awards. Prior to adoption this amount would have been recorded as a
reduction of additional paid-in capital. This change adds volatility to the Company’s effective tax rate.
• The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the state-
ment of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have
not been adjusted.
• The Company elected not to change its policy on accounting for forfeitures and continued to estimate the total number
of awards for which the requisite service period will not be rendered.
• The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the
computation of its diluted earnings per share since adoption. This resulted in an increase in diluted weighted average
common shares outstanding of 278,829 shares for the year ended December 31, 2016.
In March 2016, the FASB issued an update amending the equity method of accounting, eliminating the requirement that an
entity retroactively adopt the equity method of accounting if an investment qualifies for the equity method as a result of an
increase in the level of ownership or degree of influence. The amendments in the update, to be applied prospectively, are
effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adop-
tion is permitted. The Company elected to early adopt on a prospective basis effective January 1, 2016. The update did not
have a material impact on its results of operations, financial condition or cash flows.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
35
In September 2015, the FASB issued an update providing guidance to simplify the accounting for measurement period adjust-
ments. This update, effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal
years, requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement
period in the reporting period in which the adjustment amounts are determined. The Company adopted the update effective
January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows.
In April 2015, the FASB issued an update providing guidance to determine whether the fee paid by an entity for a cloud com-
puting arrangement includes a software license. If a cloud computing arrangement includes a software license, then the
software license element of the arrangement should be accounted for consistently with the acquisition of other software
licenses. A cloud computing arrangement that does not include a software license should be accounted for as a service
contract. The update is effective for annual periods beginning after December 15, 2015, and may be adopted prospectively or
retrospectively. The Company adopted the update prospectively effective January 1, 2016. The update did not have a material
impact on its results of operations, financial condition or cash flows.
In June 2014, the FASB issued an update to the accounting for stock compensation. This update, effective for fiscal years
beginning after December 15, 2015, modifies the accounting for share-based payments when the terms of an award provide
that a performance target could be achieved after the requisite service period. The Company adopted the update prospec-
tively effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition
or cash flows.
Recently Released Accounting Pronouncements
In August 2016, the FASB issued an update clarifying the classification of certain cash receipts and cash payments in the state-
ment of cash flows. This update, effective for annual reporting periods after December 15, 2017, including interim periods within
those annual periods, addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs;
settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in rela-
tion to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; pro-
ceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies
(including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in secu-
ritization transactions; and separately identifiable cash flows and application of the predominance principle. The Company does
not expect the update to have a material impact on its results of operations, financial condition or cash flows.
In February 2016, the FASB issued an update on lease accounting. The update, effective for annual reporting periods after
December 15, 2018, including interim periods within those annual periods, provides amendments to current lease accounting.
These amendments include the recognition of lease assets and lease liabilities on the balance sheet and disclosing other key
information about leasing arrangements. The Company is evaluating the impact of the update on its results of operations,
financial condition and cash flows.
In May 2014, the FASB issued updates on accounting and disclosures for revenue from contracts with customers. These
updates, effective for annual reporting periods after December 15, 2017, create a single, comprehensive revenue recognition
model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration)
and liabilities (obligations to provide a good or service). Revenue will be recognized based on the satisfaction of performance
obligations, which occurs when control of a good or service transfers to a customer and enhanced disclosures will be
required regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts
with customers. Either a retrospective or cumulative effect transition method is permitted. The Company has elected to adopt
using the modified retrospective transition method. The Company has completed its assessment to identify differences
between the existing standard and new standard on its customer contracts. Based on this assessment, the impact of the new
standard is due primarily to the acceleration of recognition of revenues and associated costs for certain of our software
license contracts. Under existing guidance, these contracts are recognized ratably over the contractual term of post-contract
support services in the event vendor-specific objective evidence is unavailable. The new standard requires recognition at
once upon the transfer of control of the software license. The opening balance sheet adjustment as of January 1, 2018 under
the modified retrospective transition method will be less than 1% of the Company’s 2017 annual revenues, prior to the effects
of income taxes. The Company believes it is following an appropriate timeline to allow for proper recognition, presentation
and disclosure upon adoption effective the beginning of fiscal year 2018.
Accounts Receivable—Accounts receivable are stated net of an allowance for doubtful accounts and sales allowances of $12.7
million and $14.5 million at December 31, 2017 and 2016, respectively. Outstanding accounts receivable balances are reviewed
periodically, and allowances are provided at such time that management believes it is probable that an account receivable is
uncollectible. The returns and other sales credit allowance is an estimate of customer returns, exchanges, discounts or other
forms of anticipated concessions and is treated as a reduction in revenue.
Cash and Cash Equivalents—Roper considers highly liquid financial instruments with remaining maturities at acquisition of
three months or less to be cash equivalents. Roper had no cash equivalents at December 31, 2017 and December 31, 2016.
36
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Contingencies—Management continually assesses the probability of any adverse judgments or outcomes to its potential con-
tingencies. Disclosure of the contingency is made if there is at least a reasonable possibility that a loss or an additional loss
may have been incurred. In the assessment of contingencies as of December 31, 2017, management concluded that there were
no matters for which there was a reasonable possibility of a material loss.
Earnings per Share—Basic earnings per share were calculated using net earnings and the weighted-average number of shares
of common stock outstanding during the respective year. Diluted earnings per share were calculated using net earnings and the
weighted-average number of shares of common stock and potential common stock outstanding during the respective year.
Potentially dilutive common stock consisted of stock options and the premium over the conversion price on Roper’s senior
subordinated convertible notes based upon the trading price of the Company’s common stock. Effective January 1, 2016, Roper
adopted the provisions of an accounting standards update on a prospective basis which increased the number of potentially
dilutive stock options as there is no longer a tax benefit in the calculation of dilutive stock options. See the caption “Recent
Accounting Pronouncements” elsewhere in this Note for additional information regarding the ASU. The effects of potential
common stock were determined using the treasury stock method (in thousands):
Basic weighted-average shares outstanding
Effect of potential common stock:
Common stock awards
Senior subordinated convertible notes
Diluted weighted-average shares outstanding
Years ended December 31,
2017
2016
2015
102,168
101,291
100,616
1,354
—
1,126
47
887
94
103,522
102,464
101,597
As of and for the years ended December 31, 2017, 2016 and 2015, there were 477,898, 1,144,350 and 618,220 outstanding stock
options, respectively, that were not included in the determination of diluted earnings per share because doing so would have
been antidilutive.
Estimates—The preparation of financial statements in conformity with generally accepted accounting principles in the United
States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
Foreign Currency Translation and Transactions—Assets and liabilities of subsidiaries whose functional currency is not the
U.S. dollar were translated at the exchange rate in effect at the balance sheet date, and revenues and expenses were trans-
lated at average exchange rates for the period in which those entities were included in Roper’s financial results. Translation
adjustments are reflected as a component of other comprehensive income. Foreign currency transaction gains and losses
are recorded in the consolidated statement of earnings as other income/(expense). Foreign currency transaction losses were
$1.4 million, $2.9 million and $0.7 million for the years ended December 31, 2017, 2016 and 2015.
Goodwill and Other Intangibles—Roper accounts for goodwill in a purchase business combination as the excess of the cost over
the estimated fair value of net assets acquired. Business combinations can also result in other intangible assets being recog-
nized. Amortization of intangible assets, if applicable, occurs over their estimated useful lives. Goodwill, which is not amortized,
is tested for impairment on an annual basis (or an interim basis 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). When testing goodwill for impairment, the
Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads
to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount.
If the Company elects to perform a qualitative assessment and determines that an impairment is more likely than not, then per-
formance of the quantitative impairment test is required. The quantitative process utilizes both an income approach (discounted
cash flows) and a market approach consisting of a comparable public company earnings multiples methodology to estimate the
fair value of a reporting unit. To determine the reasonableness of the estimated fair values, the Company reviews the assump-
tions to ensure that neither the income approach nor the market approach provides significantly different valuations. If the esti-
mated fair value exceeds the carrying value, no further work is required and no impairment loss is recognized. If the carrying
value exceeds the estimated fair value, a non-cash impairment loss is recognized in the amount of that excess.
When performing the quantitative assessment, key assumptions used in the income and market methodologies are updated
when the analysis is performed for each reporting unit. Various assumptions are utilized including forecasted operating results,
strategic plans, economic projections, anticipated future cash flows, the weighted-average cost of capital, comparable transac-
tions, market data and earnings multiples. The assumptions that have the most significant effect on the fair value calculations
are the anticipated future cash flows, discount rates, and the earnings multiples. While the Company uses reasonable and
timely information to prepare its cash flow and discount rate assumptions, actual future cash flows or market conditions could
differ significantly resulting in future impairment charges related to recorded goodwill balances.
Roper has 33 reporting units with individual goodwill amounts ranging from zero to $2.3 billion. In 2017, the Company per-
formed its annual impairment test in the fourth quarter for all reporting units. The Company conducted its analysis qualitatively
and assessed whether it was more likely than not that the respective fair value of these reporting units was less than the carry-
ing amount. The Company determined that impairment of goodwill was not likely in 31 of its reporting units and thus was not
required to perform a quantitative analysis for these reporting units. For the remaining two reporting units, the Company
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
37
performed its quantitative analysis and concluded that the fair value of each of these two reporting units was substantially in
excess of its carrying value, with no impairment indicated as of October 1, 2017.
Recently acquired reporting units generally represent a higher inherent risk of impairment, which typically decreases as the
businesses are integrated into the enterprise. Negative industry or economic trends, disruptions to its business, actual results
significantly below expected results, unexpected significant changes or planned changes in the use of the assets, divestitures
and market capitalization declines may have a negative effect on the fair value of Roper’s reporting units.
The following events or circumstances, although not comprehensive, would be considered to determine whether interim testing
of goodwill would be required:
• a significant adverse change in legal factors or in the business climate;
• an adverse action or assessment by a regulator;
• unanticipated competition;
• a loss of key personnel;
• a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise
disposed of;
• the testing for recoverability under the Impairment or Disposal of Long-Lived Assets of a significant asset group within
a reporting unit; and
• recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit.
Business combinations can also result in other intangible assets being recognized. Amortization of intangible assets, if applica-
ble, occurs over their estimated useful lives. Trade names that are determined to have an indefinite useful economic life are not
amortized, but separately tested for impairment during the fourth quarter of the fiscal year or on an interim basis if an event
occurs that indicates the fair value is more likely than not below the carrying value. Roper first qualitatively assesses whether
the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of
an indefinite-lived trade name is less than its carrying amount. If necessary, Roper conducts a quantitative review using the
relief-from-royalty method. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty
in order to exploit the related benefits of these assets. The fair value of each trade name is determined by applying a royalty rate
to a projection of net revenues discounted using a risk adjusted rate of capital. Each royalty rate is determined based on the
profitability of the trade name to which it relates and observed market royalty rates. Revenue growth rates are determined after
considering current and future economic conditions, recent sales trends, discussions with customers, planned timing of new
product launches or other variables. Trade names resulting from recent acquisitions generally represent the highest risk of
impairment, which typically decreases as the businesses are integrated into Roper’s enterprise.
The assessment of fair value for impairment purposes requires significant judgments to be made by management. Although
forecasts are based on assumptions that are considered reasonable by management and consistent with the plans and esti-
mates management uses to operate the underlying businesses, there is significant judgment in determining the expected
results attributable to the reporting units. Changes in estimates or the application of alternative assumptions could produce
significantly different results. No impairment resulted from the annual testing performed in 2017.
Roper evaluates whether there has been an impairment of identifiable intangible assets with definite useful economic lives, or of
the remaining life of such assets, when certain indicators of impairment are present. In the event that facts and circumstances
indicate that the cost or remaining period of amortization of any asset may be impaired, an evaluation of recoverability would be
performed. If an evaluation is required, the estimated future gross, undiscounted cash flows associated with the asset would be
compared to the asset’s carrying amount to determine if a write-down to fair value or a revision in the remaining amortization
period is required.
Impairment of Long-Lived Assets—The Company determines whether there has been an impairment of long-lived assets,
excluding goodwill and identifiable intangible assets that are determined to have indefinite useful economic lives, when certain
indicators of impairment are present. In the event that facts and circumstances indicate that the cost or life of any long-lived
assets may be impaired, an evaluation of recoverability would be performed. If an evaluation is required, the estimated future
gross, undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a
write-down to fair value or revision to remaining life is required. Future adverse changes in market conditions or poor operating
results of underlying long-lived assets could result in losses or an inability to recover the carrying value of the long-lived assets
that may not be reflected in the assets’ current carrying value, thereby possibly requiring an impairment charge or acceleration
of depreciation or amortization expense in the future.
Income Taxes—The Company recognizes in the consolidated financial statements only those tax positions determined to be
“more likely than not” of being sustained upon examination based on the technical merits of the positions. Interest and penalties
related to unrecognized tax benefits are classified as a component of income tax expense.
38
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
The Company records a valuation allowance to reduce its deferred tax assets if, based on the weight of available evidence, both
positive and negative, for each respective tax jurisdiction, it is more likely than not that some portion or all of such deferred tax
assets will not be realized. Available evidence which is considered in determining the amount of valuation allowance required
includes, but is not limited to, the Company’s estimate of future taxable income and any applicable tax-planning strategies.
Certain assets and liabilities have different bases for financial reporting and income tax purposes. Deferred income taxes
have been provided for these differences at the enacted tax rates expected to be paid. See Note 7 for information regarding
income taxes.
k
Interest Rate Risk—The Company manages interest rate risk by maintaining a combination of fixed- and variable-rate debt,
which may include interest rate swaps to convert fixed-rate debt to variable-rate debt, or to convert variable-rate debt to fixed-
rate debt. Interest rate swaps are recorded at fair value in the balance sheet as an asset or liability, and the changes in fair
values of both the swap and the hedged item are recorded as interest expense in current earnings. There were no interest rate
swaps outstanding at December 31, 2017 or December 31, 2016.
Inventories—Inventories are valued at the lower of cost and net realizable value. Cost is determined using the first-in, first-out
method. The Company writes down its inventory for estimated obsolescence or excess inventory equal to the difference
between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and
market conditions.
Other Comprehensive Income—Comprehensive income includes net earnings and all other non-owner sources of changes in
a company’s net assets.
Product Warranties—The Company sells certain of its products to customers with a product warranty that allows customers
to return a defective product during a specified warranty period following the purchase in exchange for a replacement prod-
uct, repair at no cost to the customer or the issuance of a credit to the customer. The Company accrues its estimated expo-
sure to warranty claims based upon current and historical product sales data, warranty costs incurred and any other related
information known to the Company.
Property, Plant and Equipment and Depreciation and Amortization—Property, plant and equipment is stated at cost less
accumulated depreciation and amortization. Depreciation and amortization are provided for using principally the straight-line
method over the estimated useful lives of the assets as follows:
Buildings
Machinery
Other equipment
20–30 years
8–12 years
3–5 years
Research and Development—Research and development (“R&D”) costs include salaries and benefits, rents, supplies, and
other costs related to products under development. Research and development costs are expensed in the period incurred and
totaled $281.1 million, $195.4 million and $164.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.
t
Revenue Recognition—The Company recognizes revenue when all of the following criteria are met:
• persuasive evidence of an arrangement exists;
• delivery has occurred or services have been rendered;
• the seller’s price to the buyer is fixed or determinable; and
• collectibility is reasonably assured.
In addition, the Company recognizes revenue from the sale of product when title and risk of loss pass to the customer, which
is generally when product is shipped. The Company recognizes revenue from services when such services are rendered or, if
applicable, upon customer acceptance. Revenues under certain relatively long-term and relatively large-value construction and
software projects are recognized under the percentage-of-completion method using the ratio of costs incurred to total esti-
mated costs as the measure of performance. The Company recognized revenues of $249 million, $241 million and $253 million
for the years ended December 31, 2017, 2016 and 2015, respectively, using this method. Estimated losses on any projects are
recognized as soon as such losses become known.
Capitalized Software—The Company accounts for capitalized software under applicable accounting guidance which, among
other provisions, requires capitalization of certain internal-use software costs once certain criteria are met. Overhead, general
and administrative and training costs are not capitalized. Capitalized software balances, net of accumulated amortization, were
$14.0 million and $4.4 million at December 31, 2017 and 2016, respectively.
Stock-Based Compensation—The Company recognizes expense for the grant date fair value of its employee stock awards on a
straight-line basis (or, in the case of performance-based awards, on a graded basis) over the employee’s requisite service
period (generally the vesting period of the award). The fair value of option awards is estimated using the Black-Scholes option
valuation model.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
39
(2) BUSINESS ACQUISITIONS AND DIVESTITURES
Roper completed four business acquisitions in the year ended December 31, 2017, with an aggregate purchase price of $152
million, net of cash acquired. The results of operations of the acquired businesses did not have a material impact on Roper’s
consolidated results of operations.
• Acquisition of Phase Technology—On June 21, 2017, Roper acquired the assets of Phase Technology, a business engaged in
the design, manufacture, marketing and sales of test instruments. Phase Technology is reported in the Energy Systems &
Controls segment.
The results of the following acquisitions are reported in the RF Technology segment:
• Acquisition of Handshake Software, Inc.—On August 4, 2017, Roper acquired 100% of the shares of Handshake Software,
Inc., a provider of search products, portals and services for legal professionals.
• Acquisition of Workbook Software A/S—On September 15, 2017, Roper acquired 100% of the shares of Workbook Software
A/S, a provider of software solutions for customer relationship management, project management and finance/accounting.
• Acquisition of Onvia, Inc.—On November 17, 2017, Roper acquired 100% of the outstanding shares of Onvia, Inc. (“Onvia”)
common stock for $9.00 per share in an all-cash tender offer. Onvia provides enterprise, mid-market and small business
customers with sales lead generation technologies into federal, state and local government markets.
The Company recorded $83 million in goodwill and $85 million of other identifiable intangibles in connection with the acqui-
sitions; however, purchase price allocations are preliminary pending final tax-related adjustments. The amortizable intangi-
ble assets include primarily customer relationships of $68 million (15 year weighted average useful life) and technology of
$13 million (6 year weighted average useful life).
Sale of Product Line—On May 15, 2017, Roper completed the sale of a product line in our Energy Systems & Controls seg-
ment for $10.4 million. The pretax gain on the sale was $9.4 million, which is reported in Other income/(expense), net in the
consolidated statements of earnings.
2016 Acquisitions—During the year ended December 31, 2016, Roper completed six business combinations. Roper acquired
the businesses in order to both expand and complement its existing technologies. The results of operations of the acquired
companies have been included in Roper’s consolidated results since the date of each acquisition.
The largest of the 2016 acquisitions was Deltek Inc., a global provider of enterprise software and information solutions for
government contractors, professional services firms and other project-based businesses. Roper acquired 100% of the
shares of Project Diamond Holdings Corp. (the parent company of Deltek) on December 27, 2016, in a $2.8 billion all-cash
transaction. Deltek is reported in the RF Technology segment.
The following table (in thousands) summarizes the fair values of the assets acquired and liabilities assumed at the date
of acquisition.
Accounts receivable
Other current assets
Identifiable intangibles
Goodwill
Other assets
Total assets acquired
Deferred revenue
Other current liabilities
Long-term deferred tax liability
Other liabilities
Net assets acquired
$
94,506
37,558
972,000
2,234,549
43,098
3,381,711
166,393
57,433
349,810
7,935
$2,800,140
The majority of the goodwill is not expected to be deductible for tax purposes. Of the $972 million of acquired intangible
assets acquired, $145 million was assigned to trade names that are not subject to amortization and $62 million was assigned
to in process research and development. The remaining $765 million of acquired intangible assets have a weighted-average
useful life of 12 years. The intangible assets that make up that amount include customer relationships of $625 million (13 year
weighted-average useful life) and unpatented technology of $140 million (6 year weighted-average useful life).
The Company expensed transaction costs of $4.3 million related to the Deltek acquisition as corporate general and administrative
expenses, as incurred.
40
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Roper’s results for the year ended December 31, 2016 included results from Deltek between December 28, 2016 and December
31, 2016. In that period, Deltek contributed $7.9 million in revenue and $0.8 million of earnings to Roper’s results. The following
unaudited pro forma summary presents consolidated information as if the acquisition of Deltek had occurred on January 1,
2015 (amounts in millions, except per share data):
Net revenues
Net income
Earnings per share, basic
Earnings per share, diluted
Pro forma
Year ended December 31,
2016
2015
$4,268,052
656,404
6.48
6.41
$4,012,030
647,089
6.43
6.37
Pro forma earnings were adjusted by $47.4 million for the year ended December 31, 2016 for non-recurring acquisition and
other costs. Adjustments were also made for recurring changes in amortization, interest expense and taxes related to the
acquisition.
During the year ended December 31, 2016, Roper completed five other acquisitions which were immaterial. The aggregate
purchase price of these acquisitions totaled $920 million of cash. The Company recorded $372 million in other identifiable
intangibles and $642 million in goodwill in connection with these acquisitions. Supplemental pro forma information has not
been provided as the acquisitions did not have a material impact on Roper’s consolidated results of operations individually or
in aggregate.
The results of the following acquisitions are reported in the Medical & Scientific Imaging segment:
• CliniSys—On January 7, 2016, Roper acquired 100% of the shares of CliniSys Group Ltd. (“CliniSys”), a provider of clinical
laboratory software headquartered in the United Kingdom.
• PCI Medical—On March 17, 2016, Roper acquired the assets of PCI Medical Inc., a provider of medical probe and scope
disinfection products.
• GeneInsight—On April 1, 2016, the Company acquired 100% of the shares of GeneInsight Inc., a provider of software for
managing the analysis, interpretation and reporting of genetic tests.
• UNIConnect—On November 10, 2016, Roper acquired the assets of UNIConnect LC, a provider of process management
software for molecular laboratories.
ConstructConnect—On October 31, 2016, Roper acquired 100% of the shares of iSqFt Holdings Inc. (d/b/a ConstructConnect),
a provider of cloud-based data, collaboration, and workflow automation solutions to the commercial construction industry.
ConstructConnect is reported in the RF Technology segment.
The Company expensed transaction costs of $4.2 million related to the acquisitions as corporate general and administrative
expenses, as incurred.
The majority of the goodwill recorded for these five companies is not expected to be deductible for tax purposes. Of the $372
million of intangible assets acquired, $34 million was assigned to trade names that are not subject to amortization. The remain-
ing $338 million of acquired intangible assets have a weighted-average useful life of 12 years. The intangible assets that make
up that amount include customer relationships of $242 million (14 year weighted-average useful life), unpatented technology of
$66 million (6 year weighted-average useful life) and software of $30 million (9 year weighted-average useful life).
2015 Acquisitions—During the year ended December 31, 2015, Roper completed eight business combinations. The results of
operations of the acquired companies have been included in Roper’s consolidated results since the date of each acquisition.
Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on Roper’s
consolidated results of operations individually or in aggregate.
The results of the following acquisitions are reported in the Medical & Scientific Imaging segment:
• Strata—On January 21, 2015, Roper acquired 100% of the shares of Strata Decision Technologies LLC (“Strata”), a provider
of planning and budget software for health care providers.
• Softwriters—On February 9, 2015, Roper acquired 100% of the shares of Softwriters Inc., a provider of long-term care
pharmacy operating software.
• Data Innovations—On March 4, 2015, Roper acquired 100% of the shares of Data Innovations LLC, a provider of clinical
and blood laboratory middleware.
• AHP—On September 4, 2015, Roper acquired the assets of Atlantic Health Partners LLC (“AHP”), a group purchasing
organization specializing in vaccines for the physician marketplace.
• Atlas—On October 26, 2015, Roper acquired 100% of the shares of Atlas Database Software Corp. (“Atlas”), a provider
of clinical process integration to private and public health sectors.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
41
The results of the following acquisitions are reported in the RF Technology segment:
• On Center—On July 20, 2015, Roper acquired 100% of the shares of On Center Software LLC (“On Center”), a provider
of construction automation technology.
• RF IDeas—On September 1, 2015, Roper acquired 100% of the shares of RF IDeas, Inc., a provider of proprietary identifi-
cation card technology solutions.
• Aderant—On October 21, 2015, Roper acquired 100% of the shares of Aderant Holdings, Inc. (“Aderant”), a provider of
comprehensive software solutions for law and other professional services firms.
The aggregate purchase price for the 2015 acquisitions was $1.8 billion, paid in cash. Roper purchased the businesses to expand
upon existing software, supply chain and medical platforms.
The Company expensed transaction costs of $5.9 million related to the acquisitions as corporate general and administrative
expenses, as incurred.
The Company recorded $1.2 billion in goodwill and $731 million in other identifiable intangibles in connection with the acquisi-
tions. The majority of the goodwill recorded is not expected to be deductible for tax purposes. Of the $731 million of intangible
assets acquired, $51 million was assigned to trade names that are not subject to amortization. The remaining $680 million of
acquired intangible assets have a weighted-average useful life of 17 years. The intangible assets that make up that amount
include customer relationships of $541 million (19 year weighted-average useful life), unpatented technology of $100 million
(8 year weighted-average useful life) and software of $39 million (6 year weighted-average useful life).
Divestiture of Abel—On October 2, 2015, Roper completed the sale of Abel Pumps (“Abel”) for $106 million (€95 million), net of
cash divested. The pretax gain on the divestiture was $70.9 million, which is reported as Other income/(expense), net on the
consolidated statement of earnings. The gain resulted in tax expense of $46 million as well as a future tax benefit of $11 million.
The year to date pretax income of Abel was $5.9 million for the period ended October 2, 2015. Abel was reported in the Industrial
Technology segment.
(3) INVENTORIES
The components of inventories at December 31 were as follows (in thousands):
Raw materials and supplies
Work in process
Finished products
Inventory reserves
(4) PROPERTY, PLANT AND EQUIPMENT
The components of property, plant and equipment at December 31 were as follows (in thousands):
Land
Buildings
Machinery and other equipment
Computer equipment
Software
Accumulated depreciation
2017
2016
$ 132,949
27,649
82,445
(38,110)
$ 113,632
24,290
81,263
(37,233)
$ 204,933
$ 181,952
$
2017
2,471
90,683
226,320
77,508
62,387
459,369
(316,834)
$
2016
2,404
88,201
221,325
70,110
54,451
436,491
(295,173)
$ 142,535
$ 141,318
Depreciation and amortization expense related to property, plant and equipment was $49,513, $37,299 and $38,185 for the
years ended December 31, 2017, 2016 and 2015, respectively.
42
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
(5) GOODWILL AND OTHER INTANGIBLE ASSETS
The carrying value of goodwill by segment was as follows (in thousands):
Balances at December 31, 2015
Goodwill acquired
Currency translation adjustments
Reclassifications and other
RF
Technology
$ 1,993,299
2,710,223
(15,118)
(734)
Medical &
Scientific
Imaging
$ 3,039,197
166,768
(19,100)
(1,794)
Industrial
Technology
$ 374,033
—
(10,055)
—
Energy
Systems &
Controls
$ 418,197
—
(7,774)
—
Total
$ 5,824,726
2,876,991
(52,047)
(2,528)
Balances at December 31, 2016
$ 4,687,670
$ 3,185,071
$ 363,978
$ 410,423
$ 8,647,142
Goodwill acquired
Currency translation adjustments
Reclassifications and other
63,490
19,337
28,394
—
17,582
3,264
—
13,540
—
19,169
8,395
—
82,659
58,854
31,658
Balances at December 31, 2017
$4,798,891
$3,205,917
$377,518
$437,987
$8,820,313
Reclassifications and other during the year ended December 31, 2017 were due primarily to tax adjustments for 2016 acquisitions.
See Note 2 for information regarding acquisitions.
Other intangible assets were comprised of (in thousands):
Assets subject to amortization:
Customer related intangibles
Unpatented technology
Software
Patents and other protective rights
Trade names
Assets not subject to amortization:
Trade names
In process research and development
Balances at December 31, 2016
Assets subject to amortization:
Customer related intangibles
Unpatented technology
Software
Patents and other protective rights
Trade names
Assets not subject to amortization:
Trade names
In process research and development
Balances at December 31, 2017
Cost
$ 3,272,081
462,152
184,761
24,656
6,591
578,279
62,000
Accumulated
amortization
Net book
value
$ (712,718)
(144,025)
(56,882)
(20,399)
(653)
—
—
$ 2,559,363
318,127
127,879
4,257
5,938
578,279
62,000
$ 4,590,520
$ (934,677)
$ 3,655,843
$ 3,355,232
544,046
184,703
26,090
6,635
587,787
1,418
$ (913,680)
(207,678)
(84,825)
(22,729)
(1,731)
—
—
$ 2,441,552
336,368
99,878
3,361
4,904
587,737
1,418
$4,705,861
$(1,230,643)
$3,475,218
Amortization expense of other intangible assets was $294 million, $201 million, and $164 million during the years ended
December 31, 2017, 2016 and 2015, respectively. Amortization expense is expected to be $294 million in 2018, $282 million
in 2019, $276 million in 2020, $264 million in 2021 and $260 million in 2022.
(6) ACCRUED LIABILITIES
Accrued liabilities at December 31 were as follows (in thousands):
Interest
Customer deposits
Commissions
Warranty
Accrued dividend
Rebates
Billings in excess of cost
Other
2017
$ 20,060
29,236
8,341
10,587
42,921
29,996
23,284
102,149
$266,574
2016
$ 21,742
16,707
9,144
10,548
36,077
19,414
12,381
93,326
$219,339
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
4 3
(7) INCOME TAXES
Earnings before income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following components
(in thousands):
United States
Other
2017
$ 783,654
251,069
2016
$721,000
219,652
2015
$ 710,614
291,731
$ 1,034,723
$940,652
$1,002,345
Components of income tax expense for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):
Current:
Federal
State
Foreign
Deferred:
Federal
State
Foreign
2017
2016
2015
$ 316,031
29,768
89,894
(358,300)
(3,670)
(10,772)
$239,217
21,779
54,937
$229,224
22,041
71,507
(26,760)
189
(7,355)
6,710
(16,844)
(6,360)
$ 62,951
$282,007
$306,278
Reconciliations between the statutory federal income tax rate and the effective income tax rate for the years ended December 31,
2017, 2016 and 2015 were as follows:
Federal statutory rate
Foreign rate differential
R&D tax credits
State taxes, net of federal benefit
Section 199 deduction
Stock-based compensation
Tax Cuts and Jobs Act of 2017
Other, net
2017
35.0%
(2.6)
(0.8)
1.9
(1.3(1.3))
(3.9)
(20.8)
(1.4)
6.1%
2016
2015
35.0%
(3.2)
(0.7)
1.9
(1.5)
(1.6)
—
0.1
30.0%
35.0%
(3.3)
(0.5)
2.0
(1.3)
—
—
(1.3)
30.6%
The deferred income tax balance sheet accounts arise from temporary differences between the amount of assets and liabilities
recognized for financial reporting and tax purposes.
Components of the deferred tax assets and liabilities at December 31 were as follows (in thousands):
Deferred tax assets:
Reserves and accrued expenses
Inventories
Net operating loss carryforwards
R&D credits
Foreign tax credits
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserves and accrued expenses
Amortizable intangible assets
Plant and equipment
Total deferred tax liabilities
2017
2016
$121,509
5,094
71,774
9,570
—
(25,690)
$ 186,120
8,967
87,010
7,933
9,203
26,009
$182,257
$ 273,224
$ 39,566
935,874
5,748
$981,188
$
13,915
1,400,792
6,102
$1,420,809
As of December 31, 2017, the Company had approximately $29.2 million of tax-effected U.S. federal net operating loss carryfor-
wards that if not utilized will expire in years 2021 through 2037. The U.S. federal net operating loss carryforwards decreased
from 2016 to 2017 primarily due to reduction in U.S. federal corporate tax rate for tax years beginning after December 31, 2017.
The Company has approximately $26.1 million of tax-effected state net operating loss carryforwards (without regard to federal
benefit of state) that if not utilized will expire in years 2018 through 2037. The state net operating loss carryforwards are primar-
ily related to Florida and New Jersey, but the Company has smaller net operating losses in various other states. The Company
has approximately $22.0 million of tax-effected foreign net operating loss carryforwards. Some of these net operating loss
carryforwards have an indefinite carryforward period and those that do not if not utilized will begin to expire in 2018.
4 4
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Additionally, the Company has $11.3 million of U.S. federal and state research and development tax credit carryforwards (without
regard to federal benefit of state) that will expire in years 2018 through 2037.
As of December 31, 2017, the Company determined that a total valuation allowance of $25.7 million was necessary to reduce U.S.
federal and state deferred tax assets by $9.5 million and foreign deferred tax assets by $16.2 million, where it was more likely
than not that all of such deferred tax assets will not be realized. As of December 31, 2017, based on the Company’s estimates of
future taxable income and any applicable tax-planning strategies within various tax jurisdictions, the Company believes that it is
more likely than not that the remaining net deferred tax assets will be realized.
The Company recognizes in the consolidated financial statements only those tax positions determined to be “more likely than not”
of being sustained upon examination based on the technical merits of the positions. A reconciliation of the beginning and ending
amount of unrecognized tax benefits is as follows (in thousands):
Beginning balance
Additions for tax positions of prior periods
Additions for tax positions of the current period
Additions due to acquisitions
Reductions for tax positions of prior periods
Reductions attributable to settlements with taxing authorities
Reductions attributable to lapses of applicable statute of limitations
Ending balance
2017
2016
2015
$ 38,678
24,804
4,174
—
(11,162)
(1,536)
(2,769)
$ 26,140
3,450
9,012
5,049
(1,165)
(568)
(3,240)
$28,567
3,525
3,299
6,177
(12,206)
(142)
(3,080)
$ 52,189
$ 38,678
$26,140
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $50.4 million. Interest
and penalties related to unrecognized tax benefits are classified as a component of income tax expense and totaled an expense
of $1.3 million in 2017. Accrued interest and penalties were $5.1 million at December 31, 2017 and $3.8 million at December 31,
2016. During the next twelve months, it is reasonably possible that the unrecognized tax benefits may decrease by a net $2.3
million, mainly due to anticipated statute of limitations lapses in various jurisdictions.
The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state, city and foreign
jurisdictions. The Company’s federal income tax returns for 2015 through the current period remain subject to examination and
the relevant state, city and foreign statutes vary. The Company does not expect the assessment of any significant additional tax
in excess of amounts reserved.
The Tax Act was signed into U.S. law on December 22, 2017, which was prior to the end of the Company’s 2017 reporting
period. The Tax Act contains provisions which impact the Company’s current and future income taxes including a reduction
in the US federal corporate income tax rate from 35% to 21%, a one-time deemed mandatory repatriation tax imposed on all
undistributed foreign earnings, and the introduction of a modified territorial taxation system.
The SEC released Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017 to provide guidance where the accounting
under ASC 740, Income Taxes, is incomplete for certain income tax effects of the Tax Act upon issuance of financial statements
for the reporting period in which the Tax Act was enacted. SAB 118 provides that if a Company can determine a reasonable
estimate, it should be reported as a provisional amount and adjusted during a measurement period. If a Company is unable to
determine a reasonable estimate, no related provisional amounts would be recorded until a reasonable estimate can be deter-
mined, within the measurement period. The measurement period extends until all necessary information has been obtained,
prepared, and analyzed, but no longer than 12-months from the date of enactment of the Tax Act.
The reduction in the US federal corporate income tax rate from 35% to 21% and certain immaterial changes in tax basis
resulted in a one-time estimated benefit of $379.0 million due to remeasurement of the Company’s deferred taxes. This esti-
mate is a provisional amount that will be finalized during the measurement period once all information pertaining to the
deferred tax assets and liabilities has been obtained and analyzed. The reduction in tax rate will also impact the Company’s
current tax expense in future periods beginning in 2018.
The one-time deemed mandatory repatriation tax on all undistributed foreign earnings resulted in a one-time estimated charge
of $110.7 million. The Company will elect to pay the liability over 8 years. This federal and state tax estimate is a provisional
amount that will be finalized during the measurement period once all information pertaining to the historical foreign earnings
and profits with available tax credits has been obtained and analyzed.
The introduction of a modified territorial taxation system resulted in a one-time estimated charge of $28.7 million due to the
Company’s change in its indefinite reinvestment assertion on foreign earnings. The Company now intends to distribute all his-
torical earnings subject to the deemed repatriation tax and has provided for deferred taxes related to the future state and for-
eign tax cost to repatriate. This estimate is a provisional amount that will be finalized during the measurement period once all
information pertaining to the underlying calculation has been obtained and analyzed, and interpretations to the legislation have
been decided. The Company also incurred a one-time estimated charge of $24.2 million resulting from the write-off of indirect
benefits associated with uncertain tax positions. The Company is currently unable to estimate the amount of these indirect
benefits which will be utilizable due to uncertainty surrounding interpretations to the legislations and timing of the related
tax payments. This amount will be finalized during the measurement period as information becomes available.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
45
In January 2018, the FASB released guidance on accounting for taxes on the global intangible low-taxed income (“GILTI”)
provisions of the Tax Act. The Company is still evaluating its position whether to account for deferred taxes related to GILTI
inclusions or to treat any taxes on GILTI inclusions as a period cost. The Company will perform an analysis during the
measurement period and will disclose the policy election in its financial statements once its analysis has been finalized.
(8) LONG-TERM DEBT
On September 23, 2016, Roper entered into a five-year $2.5 billion unsecured credit facility (the “2016 Facility”) with JPMorgan
Chase Bank, N.A., as administrative agent, and a syndicate of lenders, which replaced its previous $1.85 billion unsecured
credit facility dated as of July 27, 2012, as amended as of October 28, 2015 (the “2012 Facility”). The 2016 Facility comprises a
five year $2.5 billion revolving credit facility, which includes availability of up to $150 million for letters of credit. Roper may
also, subject to compliance with specified conditions, request term loans or additional revolving credit commitments in an
aggregate amount not to exceed $500 million. At December 31, 2017, there were $1.3 billion of outstanding borrowings under
the 2016 Facility.
The 2016 Facility contains affirmative and negative covenants which, among other things, limit Roper’s ability to incur new debt,
enter into certain mergers and acquisitions, sell assets and grant liens, make restricted payments (including the payment of
dividends on our common stock) and capital expenditures, or change its line of business. Roper is also subject to financial
covenants which require the Company to limit its consolidated total leverage ratio and to maintain a consolidated interest
coverage ratio. The most restrictive covenant is the consolidated total leverage ratio which is limited to 3.5 to 1.
On December 2, 2016, Roper amended the 2016 facility to allow the consolidated total leverage ratio be increased, no more
than twice during the term of the 2016 facility, to 4.0 to 1 for a consecutive four quarter fiscal period per increase (or, for any
portion of such four quarter fiscal period in which the maximum would be 4.25 to 1 pursuant to the 2016 facility amendment,
4.25 to 1). In conjunction with the Deltek acquisition (see Note 2), the Company increased the maximum consolidated total
leverage ratio covenant to 4.25 to 1 through June 30, 2017 and 4.00 to 1 through December 31, 2017.
The Company was in compliance with its debt covenants throughout the years ended December 31, 2017 and 2016.
On November 15, 2017, $400 million of senior notes due 2017 matured and were repaid using cash on hand and revolver
borrowings from the 2016 Facility.
On December 19, 2016, the Company completed a public offering of $500 million aggregate principal amount of 2.80% senior
unsecured notes due December 15, 2021 and $700 million aggregate principal amount of 3.80% senior unsecured notes due
December 15, 2026. The notes bear interest at a fixed rate of 2.80% and 3.80% per year, respectively, payable semi-annually
in arrears on June 15 and December 15 of each year, beginning June 15, 2017.
On December 7, 2015, the Company completed a public offering of $600 million aggregate principal amount of 3.00% senior
unsecured notes due December 15, 2020 and $300 million aggregate principal amount of 3.85% senior unsecured notes due
December 15, 2025. The notes bear interest at a fixed rate of 3.00% and 3.85% per year, respectively, payable semi-annually
in arrears on June 15 and December 15 of each year, beginning June 15, 2016.
On June 6, 2013, the Company completed a public offering of $800 million aggregate principal amount of 2.05% senior unse-
cured notes due October 1, 2018. The notes bear interest at a fixed rate of 2.05% per year, payable semi-annually in arrears
on April 1 and October 1 of each year, beginning October 1, 2013.
On November 21, 2012, the Company completed a public offering of $500 million aggregate principal amount of 3.125%
senior unsecured notes due November 15, 2022. The notes bear interest at a fixed rate of 3.125% per year, payable semi-
annually in arrears on May 15 and November 15 of each year, beginning May 15, 2013.
In September 2009, the Company completed a public offering of $500 million aggregate principal amount of 6.25% senior
unsecured notes due September 1, 2019. The notes bear interest at a fixed rate of 6.25% per year, payable semi-annually
in arrears on March 1 and September 1 of each year, beginning March 1, 2010.
Roper may redeem some or all of these notes at any time or from time to time, at 100% of their principal amount, plus a
make-whole premium based on a spread to U.S. Treasury securities.
The Company’s senior notes are unsecured senior obligations of the Company and rank equally in right of payment with all of
Roper’s existing and future unsecured and unsubordinated indebtedness. The notes are effectively subordinated to any of its
existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The notes are
not guaranteed by any of Roper’s subsidiaries and are effectively subordinated to all existing and future indebtedness and other
liabilities of Roper’s subsidiaries.
46
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Total debt at December 31 consisted of the following (in thousands):
2016 Facility
$400 million 1.850% senior notes due 2017
$800 million 2.050% senior notes due 2018
$500 million 6.250% senior notes due 2019
$600 million 3.000% senior notes due 2020
$500 million 2.800% senior notes due 2021
$500 million 3.125% senior notes due 2022
$300 million 3.850% senior notes due 2025
$700 million 3.800% senior notes due 2026
Other
Less unamortized debt issuance costs
Total debt
Less current portion, net of issuance costs
Long-term debt
2017
2016
$1,270,000
—
800,000
500,000
600,000
500,000
500,000
300,000
700,000
3,149
(17,594)
5,155,555
800,944
$4,354,611
$1,930,000
400,000
800,000
500,000
600,000
500,000
500,000
300,000
700,000
2,989
(23,453)
6,209,536
400,975
$5,808,561
The 2016 Facility and Roper’s $3.9 billion senior notes provide substantially all of Roper’s daily external financing require-
ments. The interest rate on the borrowings under the 2016 Facility is calculated based upon various recognized indices plus
a margin as defined in the credit agreement. At December 31, 2017, Roper’s fixed debt consisted of $3.9 billion of senior notes,
$3.1 million of other debt in the form of capital leases, several smaller facilities that allow for borrowings or the issuance of
letters of credit in foreign locations to support Roper’s non-U.S. businesses and $75.9 million of outstanding letters of credit
at December 31, 2017.
Future maturities of total debt during each of the next five years ending December 31 and thereafter were as follows
(in thousands):
2018
2019
2020
2021
2022
Thereafter
Total
$ 801,503
501,061
600,529
1,770,047
500,009
1,000,000
$5,173,149
(9) FAIR VALUE
Roper’s debt at December 31, 2017 included $3.9 billion of fixed-rate senior notes with the following fair values (in millions):
$800 million 2.050% senior notes due 2018
$500 million 6.250% senior notes due 2019
$600 million 3.000% senior notes due 2020
$500 million 2.800% senior notes due 2021
$500 million 3.125% senior notes due 2022
$300 million 3.850% senior notes due 2025
$700 million 3.800% senior notes due 2026
$800
531
608
501
505
311
723
The fair values of the senior notes are based on the trading prices of the notes, which the Company has determined to be Level 2
in the FASB fair value hierarchy. Most of Roper’s other borrowings at December 31, 2017 were at various interest rates that
adjust relatively frequently under its credit facility. The estimated fair value for these borrowings at December 31, 2017
approximated the carrying value of these borrowings.
(10) RETIREMENT AND OTHER BENEFIT PLANS
Roper maintains four defined contribution retirement plans under the provisions of Section 401(k) of the IRC covering substan-
tially all U.S. employees. Roper partially matches employee contributions. Costs related to all such plans were $27.6 million,
$23.7 million and $20.4 million for 2017, 2016 and 2015, respectively.
Roper also maintains various defined benefit retirement plans covering employees of non-U.S. and certain U.S. subsidiaries
and a plan that supplements certain employees for the contribution ceiling applicable to the Section 401(k) plans. The costs
and accumulated benefit obligations associated with each of these plans were not material.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
47
(11) STOCK-BASED COMPENSATION
The Roper Technologies, Inc. 2016 Incentive Plan (“2016 Plan”) is a stock-based compensation plan used to grant incentive stock
options, nonqualified stock options, restricted stock, stock appreciation rights or equivalent instruments to Roper’s employees,
officers and directors. At December 31, 2017, 7,802,395 shares were available to grant under the 2016 Plan.
Under the Roper Technologies, Inc., Employee Stock Purchase Plan (“ESPP”), all employees in the U.S. and Canada are eligible
to designate up to 10% of eligible earnings to purchase Roper’s common stock at a 5% discount to the average closing price of
its common stock at the beginning and end of a quarterly offering period. Common stock sold to the employees may be either
treasury stock, stock purchased on the open market, or newly issued shares.
Stock based compensation expense for the years ended December 31, 2017, 2016 and 2015 was as follows (in millions):
Stock based compensation
Tax benefit recognized in net earnings
Windfall tax benefit, net
2017
$83.1
29.1
—
2016
$78.8
27.6
—
2015
$61.8
21.6
22.2
Windfall tax benefits are no longer calculated due to the adoption of the ASU related to stock compensation (see Note 1), as all
tax benefits are recognized in net income.
Stock Options—Stock options are typically granted at prices not less than 100% of market value of the underlying stock at the
date of grant. Stock options typically vest over a period of three to five years from the grant date and expire ten years after the
grant date. The Company recorded $18.3 million, $20.1 million, and $15.3 million of compensation expense relating to out-
standing options during 2017, 2016 and 2015, respectively, as a component of general and administrative expenses, primarily
at corporate.
The Company estimates the fair value of its option awards using the Black-Scholes option valuation model. The stock volatility
for each grant is measured using the weighted-average of historical daily price changes of the Company’s common stock over
the most recent period equal to the expected life of the grant. The expected term of options granted is derived from historical
data to estimate option exercises and employee forfeitures, and represents the period of time that options granted are expected
to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve
in effect at the time of grant. The weighted-average fair value of options granted in 2017, 2016 and 2015 were calculated using
the following weighted-average assumptions:
Weighted-average fair value ($)
Risk-free interest rate (%)
Average expected option life (years)
Expected volatility (%)
Expected dividend yield (%)
2017
40.87
2.03
5.26
18.74
0.67
2016
34.57
1.44
5.20
21.35
0.70
2015
33.98
1.53
5.10
22.17
0.62
The following table summarizes the Company’s activities with respect to its share-based compensation plans for the years
ended December 31, 2017 and 2016:
Outstanding at January 1, 2016
Granted
Exercised
Canceled
Outstanding at December 31, 2016
Granted
Exercised
Canceled
Outstanding at December 31, 2017
Exercisable at December 31, 2017
Weighted-average
exercise price
per share
Weighted-average
contractual term
Aggregate
intrinsic value
$104.54
172.23
75.23
159.97
121.31
210.56
95.14
170.75
140.68
$103.48
6.15
$211,369,740
6.09
4.12
$368,589,147
$269,474,477
of shares
3,117,616
743,250
(371,853)
(69,416)
3,419,597
608,598
(644,610)
(187,721)
3,195,864
1,766,869
4 8
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
The following table summarizes information for stock options outstanding at December 31, 2017:
Outstanding options
Exercisable options
Exercise price
$ 40.57– 52.37
52.37– 78.56
78.56–104.75
104.75–130.94
130.94–157.12
157.12–183.31
183.31–209.50
209.50–235.68
235.68–261.87
$ 40.57–261.87
Number
147,840
500,259
172,777
342,805
481,652
870,883
225,450
434,398
19,800
3,195,864
Average
exercise price
Average remaining
life (years)
$ 47.38
61.18
93.83
117.51
139.21
169.61
187.64
215.02
253.01
$140.68
1.7
1.2
4.1
5.2
6.4
7.8
8.7
9.3
9.8
6.1
Number
147,840
500,259
172,777
342,805
430,101
151,337
21,750
—
—
Average
exercise price
$ 47.38
61.18
93.83
117.51
138.27
166.74
185.47
—
—
1,766,869
$103.48
At December 31, 2017, there was $29.6 million of total unrecognized compensation expense related to nonvested options granted
under the Company’s share-based compensation plans. That cost is expected to be recognized over a weighted-average period
of 2.1 years. The total intrinsic value of options exercised in 2017, 2016 and 2015 was $90.6 million, $38.9 million and $36.9
million, respectively. Cash received from option exercises under all plans in 2017 and 2016 was $61.3 million and $28.0
million, respectively.
Restricted Stock Grants—During 2017 and 2016, the Company granted 410,267 and 555,730 shares, respectively, of restricted
stock to certain employee and director participants under its share-based compensation plans. Restricted stock grants
generally vest over a period of 1 to 3 years. The Company recorded $63.0 million, $57.8 million and $46.5 million of compen-
sation expense related to outstanding shares of restricted stock held by employees and directors during 2017, 2016 and 2015,
respectively. A summary of the Company’s nonvested shares activity for 2017 and 2016 is as follows:
Nonvested at December 31, 2015
Granted
Vested
Forfeited
Nonvested at December 31, 2016
Granted
Vested
Forfeited
Nonvested at December 31, 2017
Number
of shares
Weighted-average
grant date fair value
709,275
555,730
(287,233)
(25,100)
952,672
410,267
(387,452)
(116,491)
858,996
$ 146.64
172.67
141.27
139.56
$164.62
205.88
155.95
173.53
$187.01
At December 31, 2017, there was $90.8 million of total unrecognized compensation expense related to nonvested awards granted
to both employees and directors under the Company’s share-based compensation plans. That cost is expected to be recognized
over a weighted-average period of 2.2 years. Unrecognized compensation expense related to nonvested shares of restricted
stock grants is recorded as a reduction to additional paid-in capital in stockholder’s equity at December 31, 2017.
Employee Stock Purchase Plan—During 2017, 2016 and 2015, participants of the ESPP purchased 19,683, 19,448 and 18,132
shares, respectively, of Roper’s common stock for total consideration of $4.2 million, $3.3 million, and $2.9 million, respectively.
All of these shares were purchased from Roper’s treasury shares.
(12) CONTINGENCIES
Roper, in the ordinary course of business, is the subject of, or a party to, various pending or threatened legal actions, including
product liability and employment practices that, in general, are based upon claims of the kind that have been customary over
the past several years and which the Company is vigorously defending. After analyzing the Company’s contingent liabilities on
a gross basis and, based upon past experience with resolution of its product liability and employment practices claims and the
limits of the primary, excess, and umbrella liability insurance coverages that are available with respect to pending claims,
management believes that adequate provision has been made to cover any potential liability not covered by insurance, and that
the ultimate liability, if any, arising from these actions should not have a material adverse effect on Roper’s consolidated finan-
cial position, results of operations or cash flows.
Roper or its subsidiaries have been named defendants along with numerous industrial companies in asbestos-related litigation
claims in certain U.S. states. No significant resources have been required by Roper to respond to these cases and Roper
believes it has valid defenses to such claims and, if required, intends to defend them vigorously. Given the state of these claims
it is not possible to determine the potential liability, if any.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
49
Roper’s rent expense was $58.6 million, $44.9 million and $40.2 million for 2017, 2016 and 2015, respectively. Roper’s future
minimum property lease commitments are as follows (in millions):
2018
2019
2020
2021
2022
Thereafter
Total
$ 54.3
44.7
39.6
34.6
25.7
58.0
$256.9
A summary of the Company’s warranty accrual activity is presented below (in thousands):
Balance, beginning of year
Additions charged to costs and expenses
Deductions
Other
Balance, end of year
2017
2016
2015
$ 10,548
10,820
(11,170)
389
$ 10,183
15,950
(15,513)
(72)
$ 9,537
14,284
(13,059)
(579)
$ 10,587
$ 10,548
$ 10,183
Other included warranty balances at acquired businesses at the dates of acquisition, the effects of foreign currency translation
adjustments, reclassifications and other.
As of December 31, 2017, Roper had $75.9 million of letters of credit issued to guarantee its performance under certain ser-
vices contracts or to support certain insurance programs and $573.4 million of outstanding surety bonds. Certain contracts,
primarily those involving public sector customers, require Roper to provide a surety bond as a guarantee of its performance of
contractual obligations.
(13) SEGMENT AND GEOGRAPHIC AREA INFORMATION
Roper’s operations are reported in four segments around common customers, markets, sales channels, technologies and
common cost opportunities. The segments are: RF Technology, Medical & Scientific Imaging, Industrial Technology and
Energy Systems & Controls. The RF Technology segment provides comprehensive application management software,
software-as-a-service applications and products and systems that utilize RFID communication technology. The Medical &
Scientific Imaging segment offers medical products and software and high performance digital imaging products and soft-
ware. Products included within the Industrial Technology segment are water and fluid handling pumps, flow measurement
and metering equipment, industrial valves and controls, materials analysis equipment and consumables and industrial leak
testing. The Energy Systems & Controls segment’s products include control systems, equipment and consumables for fluid
properties testing, vibration sensors and other non-destructive inspection and measurement products and services. Roper’s
management structure and internal reporting are aligned consistently with these four segments.
There were no material transactions between Roper’s business segments during 2017, 2016 and 2015. Sales between geo-
graphic areas are primarily of finished products and are accounted for at prices intended to represent third-party prices.
Operating profit by business segment and by geographic area is defined as net revenues less operating costs and expenses.
These costs and expenses do not include unallocated corporate administrative expenses. Items below income from operations
on Roper’s statement of earnings are not allocated to business segments.
Identifiable assets are those assets used primarily in the operations of each business segment or geographic area.
Corporate assets are principally comprised of cash and cash equivalents, deferred tax assets, recoverable insurance
claims, deferred compensation assets and property and equipment.
50
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Selected financial information by business segment for 2017, 2016 and 2015 follows (in thousands):
2017
Net revenues
Operating profit
Assets:
Operating assets
Intangible assets, net
Other
Total
RF
Technology
Medical &
Scientific
Imaging
Industrial
Technology
Energy
Systems &
Controls
Corporate
Total
$ 1,862,126
479,295
$1,410,349
486,575
$783,707
235,018
$551,289
151,163
$
—
(141,807)
$ 4,607,471
1,210,244
518,423
6,660,898
192,041
309,235
4,590,768
131,078
195,413
499,490
76,193
5,707
3
17,109
175,775
544,375
196,528
3,155
—
16,747
7,399
—
218,797
1,020
—
590
1,206,245
12,295,531
814,637
14,316,413
48,752
10,784
344,965
Capital expenditures
Capitalized software expenditures
Depreciation and other amortization
20,079
9,989
191,876
18,791
792
118,643
2016
Net revenues
Operating profit
Assets:
Operating assets
Intangible assets, net
Other
Total
Capital expenditures
Capitalized software expenditures
Depreciation and other amortization
2015
Net revenues
Operating profit
Assets:
Operating assets
Intangible assets, net
Other
Total
Capital expenditures
Capitalized software expenditures
Depreciation and other amortization
$ 1,210,264
372,467
$ 1,362,813
477,548
$706,625
202,451
$510,223
129,602
$
—
(127,505)
$ 3,789,925
1,054,563
487,936
6,634,964
156,413
282,437
4,660,298
154,838
11,536
6
82,653
16,098
2,749
119,248
182,430
493,924
88,130
6,590
15
18,573
164,349
513,799
134,976
2,218
31
19,701
11,788
—
358,645
863
—
278
1,128,940
12,302,985
893,002
14,324,927
37,305
2,801
240,453
$ 1,033,951
312,112
$ 1,215,318
441,931
$745,381
214,538
$587,745
162,128
$
—
(102,791)
$ 3,582,395
1,027,918
293,004
2,848,911
117,596
265,520
4,451,028
121,461
10,758
—
56,877
12,642
2,368
105,928
182,544
513,155
67,832
9,179
48
19,912
194,898
540,628
113,014
3,276
23
21,254
9,080
—
449,694
405
—
290
945,046
8,353,722
869,597
10,168,365
36,260
2,439
204,261
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
51
Summarized data for Roper’s U.S. and foreign operations (principally in Canada, Europe and Asia) for 2017, 2016 and 2015,
based upon the country of origin of the Roper entity making the sale, was as follows (in thousands):
2017
Sales to unaffiliated customers
Sales between geographic areas
Net revenues
Long-lived assets
2016
Sales to unaffiliated customers
Sales between geographic areas
Net revenues
Long-lived assets
2015
Sales to unaffiliated customers
Sales between geographic areas
Net revenues
Long-lived assets
United States
Non-U.S.
Eliminations
Total
$3,679,133
133,193
$ 928,338
187,765
$ —
(320,958)
$4,607,471
—
$3,812,326
$ 1,116,103
$(320,958)
$4,607,471
$ 144,013
$
31,431
$ —
$ 175,444
$2,978,496
137,276
$ 811,429
109,370
$ —
(246,646)
$ 3,789,925
—
$3,115,772
$ 920,799
$(246,646)
$ 3,789,925
$ 145,996
$
21,020
$ —
$ 167,016
$2,829,752
135,363
$ 752,643
119,006
$ —
(254,369)
$ 3,582,395
—
$2,965,115
$ 871,649
$(254,369)
$ 3,582,395
$ 133,522
$
21,960
$ —
$ 155,482
Export sales from the U.S. during the years ended December 31, 2017, 2016 and 2015 were $513 million, $460 million and $481
million, respectively. In the year ended December 31, 2017, these exports were shipped primarily to Asia (34%), Europe (21%),
Canada (17%), Middle East (16%) and other (12%).
Sales to customers outside the U.S. accounted for a significant portion of Roper’s revenues. Sales are attributed to geographic
areas based upon the location where the product is ultimately shipped. Roper’s net revenues for the years ended December 31,
2017, 2016 and 2015 are shown below by region, except for Canada, which is presented separately as it is the only country in
which Roper has had greater than 4% of total revenues for any of the three years presented (in thousands):
2017
Canada
Europe
Asia
Middle East
Rest of the world
Total
2016
Canada
Europe
Asia
Middle East
Rest of the world
Total
2015
Canada
Europe
Asia
Middle East
Rest of the world
Total
RF
Technology
Medical &
Scientific
Imaging
Industrial
Technology
Energy
Systems &
Controls
$ 73,356
140,348
10,180
61,356
26,243
$ 23,501
244,031
119,150
11,051
22,708
$ 64,079
92,427
58,286
4,833
21,485
$ 26,171
119,434
137,693
35,238
49,592
Total
$ 187,107
596,240
325,309
112,478
120,028
$311,483
$420,441
$241,110
$368,128
$1,341,162
$ 52,703
71,673
11,988
50,605
17,067
$ 21,993
228,058
111,843
10,107
21,549
$ 60,551
89,229
52,087
2,997
20,675
$ 22,360
119,032
126,769
37,491
46,202
$ 157,607
507,992
302,687
101,200
105,493
$204,036
$393,550
$225,539
$351,854
$ 1,174,979
$ 45,506
57,581
10,019
54,165
10,761
$ 23,737
167,698
112,732
15,877
20,417
$ 65,826
97,938
60,817
4,220
24,471
$ 23,883
129,021
132,088
50,227
55,074
$ 158,952
452,238
315,656
124,489
110,723
$178,032
$340,461
$253,272
$390,293
$ 1,162,058
52
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
(14) CONCENTRATION OF RISK
Financial instruments which potentially subject the Company to credit risk consist primarily of cash, trade receivables and
unbilled receivables.
The Company maintains cash with various major financial institutions around the world. The Company limits the amount of
credit exposure with any one financial institution and believes that no significant concentration of credit risk exists with
respect to cash balances.
Trade and unbilled receivables subject the Company to the potential for credit risk with customers. To reduce credit risk,
the Company performs ongoing evaluations of its customers’ financial condition.
(15) QUARTERLY FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data)
2017
Net revenues
Gross profit
Income from operations
Net earnings
Earnings per share:
Basic
Diluted
2016
Net revenues
Gross profit
Income from operations
Net earnings
Earnings per share:
Basic
Diluted
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
$ 1,086,305
667,614
258,256
158,071
$ 1,134,671
705,650
294,258
179,556
$ 1,159,912
726,420
310,747
190,273
$1,226,583
765,112
346,983
443,872
1.55
1.53
1.76
1.74
1.86
1.84
4.33
4.27
$ 902,423
559,519
244,991
151,416
$
931,558
567,520
253,078
158,069
$ 945,144
578,493
267,390
167,079
$ 1,010,800
626,878
289,104
182,081
1.50
1.48
1.56
1.54
1.65
1.63
1.79
1.78
The sum of the four quarters may not agree with the total for the year due to rounding.
ROPER TECHNOLOGIES, INC. AND SUBSIDIARIES
SCHEDULE II—CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS
Years ended December 31, 2017, 2016 and 2015
(in thousands)
Allowance for doubtful accounts and sales allowances
2017
2016
2015
Reserve for inventory obsolescence
2017
2016
2015
Balance at
Beginning
of Year
Additions
Charged to
Costs and
Expenses
Deductions
Other
Balance
at End
of Year
$14,489
$ 4,262
$(5,919)
$ (144)
$12,688
12,404
13,694
$37,233
34,040
38,879
1,791
1,536
$ 5,291
10,071
8,616
(2,794)
(4,128)
3,088
1,302
14,489
12,404
$(6,331)
$ 1,917
$38,110
(6,540)
(9,049)
(338)
(4,406)
37,233
34,040
Deductions from the allowance for doubtful accounts represented the net write-off of uncollectible accounts receivable.
Deductions from the inventory obsolescence reserve represented the disposal of obsolete items.
Other included the allowance for doubtful accounts and reserve for inventory obsolescence of acquired businesses at the
dates of acquisition, the effects of foreign currency translation adjustments for those companies whose functional currency
was not the U.S. dollar, reclassifications and other.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
53
ITEM 9 | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
There have been no changes in accountants or disagreements with accountants on accounting and financial disclosures.
ITEM 9A | CONTROLS AND PROCEDURES
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate control over financial reporting, as such term is
defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management,
including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of
our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the
framework in Internal Control—Integrated Framework, our management concluded that our internal control over finan-
cial reporting was effective as of December 31, 2017. Our internal control over financial reporting as of December 31,
2017 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their
report which is included herein.
k
Our management excluded acquisitions completed during 2017 from its assessment of internal control over financial report-
ing as of December 31, 2017. These acquisitions are wholly-owned subsidiaries whose assets and revenues each represent
less than 1% of the related consolidated financial statement amounts as of and for the year ended December 31, 2017.
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
As required by SEC rules, we have evaluated the effectiveness of the design and operation of our disclosure controls and
procedures as of the end of the period covered by this report. This evaluation was carried out under the supervision and
with the participation of our management, including our principal executive officer and principal financial officer. Based on
this evaluation, we have concluded that our disclosure controls and procedures were effective as of December 31, 2017.
Disclosure controls and procedures are our controls and other procedures designed to ensure that information required to be
disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or sub-
mit under the Exchange Act are accumulated and communicated to our management, including our principal executive officer
and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There was no change in our internal control over financial reporting that occurred during the fourth quarter of 2017 that has
materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B | OTHER INFORMATION
There were no disclosures of any information required to be filed on Form 8-K during the fourth quarter of 2017 that were
not filed.
54
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
PART III
Except as otherwise indicated, the following information required by the Instructions to Form 10-K is incorporated herein by
reference from the sections of the Roper Proxy Statement for the annual meeting of shareholders (“2018 Proxy Statement”), as
specified below:
ITEM 10 | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
We incorporate the information required by this item by reference to our 2018 Proxy Statement.
ITEM 11 | EXECUTIVE COMPENSATION
We incorporate the information required by this item by reference to our 2018 Proxy Statement.
ITEM 12 | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
Other than the information set forth below, we incorporate the information required by this item by reference to our 2018 Proxy
Statement.
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
The following table provides information as of December 31, 2017 regarding compensation plans (including individual
compensation arrangements) under which our equity securities are authorized for issuance.
Plan Category
Equity Compensation Plans
Approved by Shareholders(1)
Stock options
Restricted stock awards(2)
Subtotal
Equity Compensation Plans Not
Approved by Shareholders
Total
(a)
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
(b)
Weighted-average
exercise price of
outstanding options,
warrants and rights
(c)
Number of securities remaining
available for future issuance under
equity compensation plans (excluding
securities reflected in column (a))
3,195,864
858,996
4,054,860
—
4,054,860
$140.68
—
—
$ —
7,802,395
—
7,802,395
(1) Consists of the Amended and Restated 2006 Incentive Plan (no additional equity awards may be granted under this plan) and the 2016 Incentive Plan.
(2) The weighted-average exercise price is not applicable to restricted stock awards.
ITEM 13 | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND
DIRECTOR INDEPENDENCE
We incorporate the information required by this item by reference to our 2018 Proxy Statement.
ITEM 14 | PRINCIPAL ACCOUNTANT FEES AND SERVICES
We incorporate the information required by this item by reference to our 2018 Proxy Statement.
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
55
PART IV
ITEM 15 | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)
The following documents are filed as a part of this Annual Report.
(1) Consolidated Financial Statements: The following consolidated financial statements are included in Part II, Item 8 of
this report.
Consolidated Balance Sheets as of December 31, 2017 and 2016
Consolidated Statements of Earnings for the Years ended December 31, 2017, 2016 and 2015
Consolidated Statements of Comprehensive Income for the Years ended December 31, 2017, 2016 and 2015
Consolidated Statements of Stockholders’ Equity for the Years ended December 31, 2017, 2016 and 2015
Consolidated Statements of Cash Flows for the Years ended December 31, 2017, 2016 and 2015
Notes to Consolidated Financial Statements
(2) Consolidated Valuation and Qualifying Accounts for the Years ended December 31, 2017, 2016 and 2015
(b)
Exhibits
Exhibit No.
Description of Exhibit
(a)3.1
(b)3.2
(c)4.2
4.3
(d)4.4
(e)4.5
(f)4.6
(g)4.7
(h)4.8
(i)4.9
(j)4.10
(k)4.11
4.12
(l)4.13
4.14
Restated Certificate of Incorporation as amended through April 24, 2015.
Amended and Restated By-Laws.
Indenture between Registrant and SunTrust Bank, dated as of November 28, 2003.
Form of Debt Securities (included in Exhibit 4.2).
First Supplemental Indenture between Registrant and SunTrust Bank, dated as of December 29, 2003.
Second Supplemental Indenture between Registrant and SunTrust Bank, dated as of December 7, 2004.
Indenture between Registrant and Wells Fargo Bank, dated as of August 4, 2008.
Form of Note.
Form of 2.05% Senior Notes due 2018.
Form of 6.25% Senior Notes due 2019.
Form of 3.125% Senior Notes due 2022.
Form of 3.00% Senior Notes due 2020.
Form of 3.85% Senior Notes due 2025 (included in Exhibit 4.11).
Form of 2.800% Senior Notes due 2021.
Form of 3.800% Senior Notes due 2026 (included in Exhibit 4.13).
(m)10.01
Form of Amended and Restated Indemnification Agreement.†
(n)10.02
(o)10.03
(p)10.04
(q)10.05
(r)10.06
(s)10.07
(t)10.08
Employee Stock Purchase Plan, as amended and restated.†
Non-Qualified Retirement Plan, as amended.†
Brian D. Jellison Employment Agreement, dated as of December 29, 2008.†
Credit Agreement, dated as of September 23, 2016 among Registrant, the financial institutions from time to
time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Wells Fargo Bank, N.A. and Bank of
America, N.A. as syndication agents, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Bank, Ltd., PNC
Bank, National Association, SunTrust Bank and TD Bank, N.A. as co-documentation agents.
Amendment No. 1 to Credit Agreement dated December 2, 2016, to Credit Agreement dated as of September
23, 2016 by and among Registrant, the foreign subsidiary borrowers party thereto from time to time, the lend-
ers party thereto from time to time, JP Morgan Chase Bank, N.A., as Administrative Agent, and the other
agents and parties thereto.
Offer letter for John Humphrey, dated March 31, 2006.†
Amended and Restated 2006 Incentive Plan.†
56
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
(u)10.09
Form of Restricted Stock Agreement for Non-Employee Directors.†
(u)10.10
(u)10.11
(v)10.12
Form of Restricted Stock Agreement for Employees.†
Form of Non-Statutory Stock Option Agreement.†
Amendment to John Humphrey offer letter.†
(w)10.13
Offer letter to John K. Stipancich.†
(x)10.14
(y)10.15
(z)10.16
(aa)10.17
(bb)10.18
(cc)10.19
Form of director and officer indemnification agreement.†
2016 Incentive Plan.†
Amendment No. 1 to the 2016 Incentive Plan.†
Form of Cash Settled Restricted Stock Unit Award Agreement for Non-US Employees, under the 2016
Incentive Plan.
Form of Non-Statutory Stock Option Agreement, under the 2016 Incentive Plan.†
Form of Restricted Stock Award Agreement, under the 2016 Incentive Plan.†
(dd)10.20
Director Compensation Plan, under 2016 Incentive Plan.†
10.21
10.22
10.23
21.1
23.1
31.1
31.2
32.1
Form of Restricted Stock Unit Award Agreement for Non-Employee Directors, under the 2016 Incentive Plan
(included in Exhibit 10.20).
Offer Letter to Neil Hunn, filed herewith.†
Offer Letter to Robert Crisci, filed herewith.†
List of Subsidiaries, filed herewith.
Consent of Independent Registered Public Accountants, filed herewith.
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer, filed herewith.
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer, filed herewith.
Section 1350 Certification of Chief Executive and Chief Financial Officers, filed herewith.
101.INS
XBRL Instance Document, furnished herewith.
101.SCH
XBRL Taxonomy Extension Schema Document, furnished herewith.
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document, furnished herewith.
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document, furnished herewith.
101.LAB
XBRL Taxonomy Extension Label Linkbase Document, furnished herewith.
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document, furnished herewith.
a) Incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 24, 2015
(file no. 1-12273).
b) Incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed March 14, 2016
(file no. 1-12273).
c) Incorporated herein by reference to Exhibit 4.2 to the Company’s Pre-Effective Amendment No. 1 to the Registration
Statement on Form S-3 filed November 28, 2003 (file no. 333-110491).
d) Incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 13, 2004
(file no. 1-12273).
e) Incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed December 7, 2004
(file no. 1-12273).
f) Incorporated herein by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q filed on November 7, 2008
(file no. 1-12273).
g) Incorporated herein by reference to Exhibit 4.2 to the Registration Statement on Form S-3/ASR filed November 25, 2015
(file no. 333-208200).
h) Incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed June 6, 2013
(file no. 1-12273).
i) Incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed September 2, 2009
(file no. 1-12273).
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
57
j) Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed November 21, 2012
(file no. 1-12273).
k) Incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed December 7, 2015
(file no. 1-12273).
l) Incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed December 19, 2016
(file no. 1-12273).
m) Incorporated herein by reference to Exhibit 10.04 to the Company’s Quarterly Report on Form 10-Q filed August 31, 1999
(file no. 1-12273).
n) Incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed March 5, 2017.
(file no. 1-12273).
o) Incorporated herein by reference to Exhibit 10.06 to the Company’s Annual Report on Form 10-K filed March 2, 2009
(file no. 1-12273).
p) Incorporated herein by reference to Exhibit 10.07 to the Company’s Annual Report on Form 10-K filed March 2, 2009
(file no. 1-12273).
q) Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 23, 2016
(file no. 1-12273).
r) Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 7, 2016
(file no. 1-12273).
s) Incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed August 9, 2006
(file no. 1-12273).
t) Incorporated herein by reference to Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed April 30,
2012 (file no. 1-12273).
u) Incorporated herein by reference to Exhibits 10.2, 10.3 and 10.4 to the Company’s Current Report on Form 8-K filed
December 6, 2006 (file no. 1-12273).
v) Incorporated herein by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K filed March 2, 2009
(file no. 1-12273).
w) Incorporated herein by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K filed on February 27, 2017
(file no. 1-12273).
x) Incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed November 20, 2015 (file no. 1-12273).
y) Incorporated by reference to Appendix B to the Company’s Definitive Proxy Statement on Schedule 14A filed April 26, 2016
(file no. 1-12273).
z) Incorporated herein by reference to Exhibit 10.20 to the Company’s Annual Report on Form 10-K filed on February 27, 2017
(file no. 1-12273).
aa) Incorporated herein by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K filed on February 27, 2017
(file no. 1-12273).
bb) Incorporated herein by reference to Exhibit 10.22 to the Company’s Annual Report on Form 10-K filed on February 27, 2017
(file no. 1-12273).
cc) Incorporated herein by reference to Exhibit 10.23 to the Company’s Annual Report on Form 10-K filed on February 27, 2017
(file no. 1-12273).
dd) Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q filed August 5, 2016 (file no. 1-12273).
† Management contract or compensatory plan or arrangement.
ITEM 16 | FORM 10-K SUMMARY
None
58
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Roper has duly caused this Report
to be signed on its behalf by the undersigned, therewith duly authorized.
ROPER TECHNOLOGIES, INC.
(Registrant)
Brian D. Jellison, President and Chief Executive Officer
February 23, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons
on behalf of Roper and in the capacities and on the dates indicated.
/S/ BRIAN D. JELLISON
Brian D. Jellison
/S/ ROBERT C. CRISCI
Robert C. Crisci
/S/ JASON P. CONLEY
Jason P. Conley
/S/ AMY WOODS BRINKLEY
Amy Woods Brinkley
/S/ JOHN F. FORT, III
John F. Fort, III
/S/ ROBERT D. JOHNSON
Robert D. Johnson
/S/ ROBERT E. KNOWLING
Robert E. Knowling
/S/ WILBUR J. PREZZANO
Wilbur J. Prezzano
/S/ LAURA G. THATCHER
Laura G. Thatcher
/S/ RICHARD F. WALLMAN
Richard F. Wallman
/S/ CHRISTOPHER WRIGHT
Christopher Wright
President, Chief Executive Officer and
Chairman of the Board of Directors
(Principal Executive Officer)
February 23, 2018
Vice President,
Chief Financial Officer
(Principal Financial Officer)
February 23, 2018
Vice President and Controller
(Principal Accounting Officer)
February 23, 2018
Director
Director
Director
Director
Director
Director
Director
Director
February 23, 2018
February 23, 2018
February 23, 2018
February 23, 2018
February 23, 2018
February 23, 2018
February 23, 2018
February 23, 2018
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
59
EXHIBIT 10.23
6901 Professional Parkway E.
Suite 200
Sarasota, FL 34240
April 12, 2013
Rob Crisci
3053 Argonne Dr. NW
Atlanta, GA 30305
Re: Offer Letter of Employment
Dear Rob:
Telephone (941) 556-2601
This letter is to confirm our offer of employment to join Roper Industries Inc. (“Roper” or the “Company”) as Director, Finance
& Investor Relations reporting to me, and to be based at our headquarters in Sarasota, FL. As discussed, we look forward to
having you join the company beginning on April 22, 2013.
Compensation:
• Your annual base salary will be $220,000, payable semi-monthly. Your performance will be measured and reviewed on
an annual basis. The first such review will be in QI 2014.
• You will be eligible for an annual incentive bonus of up to 50% of your annualized base salary, beginning in 2013 (pro-rata
for 2013 performance, payable in early 2014).
• You will receive a sign-on bonus of $80,000 payable within 30 days of your start date. If you terminate your employment
with Roper within the first 12 months, a pro-rated portion of the sign-on bonus will be due to the Company.
• You will receive 5,000 Non-Qualified Roper Stock Options, with a strike price equal to the closing price as of your start
date (expected to be April 22, 2013). These options will vest ratably over 3 years of continuous service.
• You will receive 1,500 shares of Restricted Stock. This stock will vest 100% after 3 years of continuous service.
Employee Benefits:
• You will be eligible for all Company employee benefits available to Roper employees, including health, dental, vision,
disability, life insurance and a 401-K Plan. The Company will make matching contributions of up to 4.5% of your deferral
amount, as well as a profit-sharing contribution of 3% of eligible compensation as part of these plans based on your
participation. Details of these and other benefits will be provided in materials that will be sent to you. Coverage will
commence on your start date with Roper to the extent permitted under the applicable plans.
• You will be eligible for 15 days of vacation per year until you have completed 4 years of service when your vacation will
increase to 20 days per year. You will also receive customary holidays and sick leave, as well as business expense
reimbursement.
60
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Relocation:
Roper will reimburse (and gross up) the customary moving and relocation expenses you incur at the time of your relocation,
including:
• Real estate commission of up to 6% on the sale of your GA home
• Reasonable and customary seller’s closing cost on your GA home
• Shipment of household goods, including one car
• Storage of household goods for up to 60 days
• House hunting trip expenses for up to 5 days
• Reasonable and customary closing costs for the purchase of a home in the Sarasota area
• Temporary living expenses for up to 60 days
• Lump sum payment of $8,000 to assist with miscellaneous expenses associated with the relocation
If you voluntarily terminate your employment during the first two years, a pro-rated portion of the relocation expenses, including
lump sum payment, will be due to the Company.
This employment is on an “at will” basis and either party can terminate the relationship at any time, with or without cause.
In addition, The Immigration Reform and Control Act of 1986 requires employers to verify that all associates are legally authorized
to work in the United States. You will be required to provide two forms of ID when completing the 1-9 form.
Please feel free to contact either me or Greg Anderson, Vice-President, Human Resources to address any further questions
that you may have about your transition to Roper.
Rob, we look forward to you joining the Roper team.
Sincerely yours,
p
/s/ John Humphrey
y
John Humphrey
Executive Vice President
Chief Executive Officer
Accepted by:
/s/ Rob Crisci
Rob Crisci
Date: April 15, 2013
CC: Greg Anderson
Brian Jellison
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
61
EXHIBIT 10.22
6901 Professional Parkway E.
Sarasota, FL 34240
Sent via Electronic Mail
August 18, 2011
Mr. Neil Hunn
1015 Lillian Drive
Alpharetta, GA 30004
Re: Offer Letter of Employment
Dear Neil:
Telephone (941) 556-2601
Fax (941) 556-2670
This letter is to confirm our offer of employment to join Roper Industries Inc. (“Roper” or the “Company”) as Group Vice
President. You will report to the undersigned. While a start date needs to be finalized, we would like you to join the Company
by September 28, 2011.
Compensation:
• Your base salary will be $525,000 per year. Your performance will be measured and reviewed on an annual basis.
The first such review will be in January 2013.
• Your annual bonus eligibility will be up to 100% of your base salary, with your 2012 bonus period eligible for payment
within the first quarter of 2013.
• You will receive an equity award of 12,000 stock options (vest in equal annual installments over 3 years, with first vesting
period occurring on September 30, 2012) and 6,000 restricted shares (cliff vesting in 3 years) after your start date.
• You will receive a one-time sign-on equity award as follows:
• Participation in the Roper Stock Option program, with 20,000 options at time of hire (cliff vest in 3 years).
• You will receive 10,000 restricted shares at time of hire (cliff vest in 3 years).
• The one-time sign-on equity awards will vest on a cliff vesting schedule on September 30, 2014, contingent upon a
start date prior to September 30, 2011.
• If your employment is terminated by Roper without “cause” (as hereinafter defined) or due to your death or permanent
disability prior to the 3rd anniversary of your start date, these sign-on options and shares will immediately vest on a
pro-rata basis on the termination date.
Employee Benefits:
• You will be eligible for all Company employee benefits available to Roper’s corporate officers including disability, health,
dental, vision, life insurance, a 401-K Plan and a non-qualified deferred compensation plan. The Company will make
base and matching contributions of up to 7-1/2 % of your salary as part of these plans based on your participation.
Details of these and other benefits will be provided in materials that will be sent to you. Coverage will commence on
your start date with Roper to the extent permitted under the applicable plans.
• Customary vacation, holidays and sick leave and business expense reimbursement will be provided as per Company
policy.
• An Executive Financial Planning allowance will be provided for an advisor of your choice with accreditations: CPA, CFA
or JD.
Auto Car Allowance:
• Roper will lease an automobile of your choice under its corporate program.
62
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Relocation:
• Roper will reimburse (and gross up) the customary moving and relocation expenses you incur at the time of your reloca-
tion and will provide reasonable temporary accommodations per Roper’s policy for executives until your relocation. In
addition, you will receive an $8,000 lump sum payment as part of the relocation program.
Severance:
• If Roper terminates your employment without cause (as used herein, “cause” shall mean your commission of any crime
involving the funds or the assets of the Company, your willful breach of the Company’s ethical and other policies and
guidelines of conduct applicable to you, your personal conduct or misbehavior which is substantially detrimental or
threatening to the reputation, prospects, welfare or security of the Company, or your continued non-performance of
duties in the manner requested by the Chief Executive Officer after written notice thereof), you will be entitled to
receive one year’s severance (monthly installments) equal to your then-current monthly base salary plus 1 year of
medical benefit coverage.
Please feel free to contact Greg Anderson, Vice-President, Human Resources to address any further questions that you may
have about your transition to Roper.
Neil, we look forward to you joining the Roper team.
Sincerely yours,
/s/ Brian D. Jellison
Brian D. Jellison
Chairman, President & Chief Executive Officer
Accepted by:
/s/ Neil Hunn
Neil Hunn
Date: August 26, 2011
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
63
EXHIBIT 31.1
I, Brian D. Jellison, certify that:
1. I have reviewed this Annual Report on Form 10-K of Roper Technologies, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and proce-
dures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiar-
ies, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, 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;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our con-
clusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 23, 2018
/s/ Brian D. Jellison
Brian D. Jellison
Chairman of the Board, President and
Chief Executive Officer
(Principal Executive Officer)
64
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
EXHIBIT 31.2
I, Robert C. Crisci, certify that:
1. I have reviewed this Annual Report on Form 10-K of Roper Technologies, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and proce-
dures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiar-
ies, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, 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;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our con-
clusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the reg-
istrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 23, 2018
/s/ Robert C. Crisci
Robert C. Crisci
Vice President, Chief Financial Officer
(Principal Financial Officer)
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
65
EXHIBIT 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of Roper Technologies, Inc. (the “Company”) on Form 10-K for the year ended December 31,
2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Brian D. Jellison, Chief Executive
Officer of the Company, and Robert C. Crisci, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C.
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge that:
1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.
Date: February 23, 2018
/s/ Brian D. Jellison
Brian D. Jellison
Chairman of the Board, President and Chief Executive Officer
(Principal Executive Officer)
/s/ Robert C. Crisci
Robert C. Crisci
Vice President, Chief Financial Officer
(Principal Financial Officer)
This certification is being made for the exclusive purpose of compliance of the Company with the requirements of Section 906
of the Sarbanes-Oxley Act of 2002, and may not be disclosed, distributed or used by any person or for any reason other than
specifically required by law.
66
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
EXHIBIT 21.1
Name of Subsidiary
3089554 Nova Scotia ULC
AC Analytical Controls B.V.
AC Analytical Controls Holding B.V.
AC Analytical Controls Services B.V.
Acton Research Corporation
Acumen PM, LLC
Aderant Canada Company
Aderant Case Management, LLC
Aderant CM, LLC
Aderant CompuLaw, LLC
Aderant CRM, LLC
Aderant DoD, LLC
Aderant Enterprise Holdings, Inc.
Aderant FM, LLC
Aderant Holdings, Inc.
Aderant Imaging, LLC
Aderant International Holdings, Inc.
Aderant Legal Holdings, Inc.
Aderant Legal Holdings (AUS) Pty Ltd
Aderant Legal Holdings (NZ) ULC
Aderant Legal (UK) Limited
Aderant North America, Inc.
Aderant Parent Holdings, Inc.
Aderant RainMaker, LLC
Aderant Redwood, LLC
Advanced Sensors Limited
Alpha Holdings of Delaware I LLC
Alpha Holdings of Delaware II LLC
Alpha Technologies B.V.
Alpha Technologies GmbH
Alpha Technologies Japan LLC
Alpha Technologies Services LLC
Alpha Technologies U.K.
Alpha Technologies, s.r.o.
Alpha UK Holdings LLC
Amot Controls Corporation
Amot Controls GmbH
Amot/Metrix Investment Company, Inc.
Amphire Solutions, Inc.
Amtech Systems (Hong Kong) Limited
Amtech Systems, LLC
Amtech World Corporation
Ascension Technology Corporation
Atlantic Health Partners, Inc.
Atlas Database Software Corp.
Atlas Healthcare Software India Private Limited
Axium Holdco, Inc.
BidClerk, Inc.
Bid News Construction Reports LLC
CBORD Holdings Corp.
CDC Publishing, LLC
Centurion Research Solutions, LLC
Civco Holding, Inc.
Civco Medical Instruments Co., Inc.
CIVCO Medical Solutions B.V.
Clinisys Group Limited
Clinisys Scotland Limited
Jurisdiction of Incorporation/Organization
Canada
Netherlands
Netherlands
Netherlands
Delaware
Texas
Canada
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Australia
New Zealand
United Kingdom
Florida
Delaware
Delaware
Delaware
United Kingdom
Delaware
Delaware
Netherlands
Germany
Delaware
Delaware
United Kingdom
Czech Republic
Delaware
Delaware
Germany
Delaware
Delaware
Hong Kong
Delaware
Delaware
Delaware
Delaware
California
India
Delaware
Delaware
Oklahoma
Delaware
Delaware
Virginia
Delaware
Iowa
Netherlands
United Kingdom
United Kingdom
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
67
Name of Subsidiary
Clinisys Solutions Limited
CMD Holdco, Inc.
Compressor Controls (Beijing) Corporation Ltd.
Compressor Controls Corporation
Compressor Controls Corporation B.V.
Compressor Controls Corporation Middle East
Compressor Controls Corporation S.r.l.
Compressor Controls Mauritius Ltd.
Compressor Controls Pty Ltd.
Construction Datafax, Inc.
Construction Market Data Group Inc.
Construction Market Data Group LLC
Cornell Pump Company
C/S Solutions, Inc.
DAP Technologies Corp.
DAP Technologies LTD
Dash I, Inc.
DAT Solutions, LLC
Data Innovations LLC
Data Innovations Canada Ltd.
Data Innovations Cooperatief U.A.
Data Innovations Europe S.A.
Data Innovations Latin America Ltda
Dawning Technologies, LLC
DCMH Group Holdings, Inc.
DCMH Group Holdings, LLC
DCMH Holdings, Inc.
Deltek Asia Pacific (HK) Limited
Deltek Australia Pty Ltd.
Deltek Belgie BVBA
Deltek Danmark A/S
Deltek France SAS
Deltek GB Limited
Deltek GmbH
Deltek, Inc.
Deltek Nederland B.V.
Deltek Netherlands B.V.
Deltek Norge AS
Deltek Systems (Canada), Inc.
Deltek Systems (Colorado) Inc.
Deltek Systems (Philippines) Ltd.
Deltek Sverige AB
Deltek UK Limited
Deltek WST LLC
DI Acquisition Subsidiary, Inc.
DI Dutch Holdings LLC
DI Hong Kong Limited
Dynamic Instruments, Inc.
Dynisco Enterprises GmbH
Dynisco Enterprises, LLC
Dynisco Europe GmbH
Dynisco Holding GmbH
Dynisco Hong Kong Holdings, Limited
Dynisco Instruments LLC
Dynisco Instruments S.a.r.l.
Dynisco LLC
Dynisco Parent, Inc.
Jurisdiction of Incorporation/Organization
United Kingdom
Delaware
China
Iowa
Netherlands
Delaware
Italy
Mauritius
Australia
Alabama
Canada
Delaware
Delaware
California
Delaware
Canada
Delaware
Delaware
Delaware
Canada
Netherlands
Belgium
Brazil
Delaware
Delaware
Delaware
Delaware
Hong Kong
Australia
Belgium
Denmark
France
United Kingdom
Germany
Delaware
Netherlands
Netherlands
Norway
Canada
Wyoming
Virginia
Sweden
United Kingdom
Texas
Delaware
Delaware
Hong Kong
California
Germany
Delaware
Germany
Germany
Hong Kong
Delaware
France
Delaware
Delaware
68
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Name of Subsidiary
Jurisdiction of Incorporation/Organization
Dynisco S.r.l.
Dynisco Shanghai Sensor and Instrument Co., Ltd.
Dynisco–Viatran (M) Sdn Bhd
Dynisco Viatran LLC
Dynisco-Viatran Instrument Sdn Bhd
Fluid Metering, Inc.
FMS Purchasing & Services, Inc.
Foodlink Holdings, Inc.
Foodlink IT India Private Limited
Fresco Automation & IT Consultancy
FSI Holdings, Inc.
FTI Flow Technology, Inc.
Gatan GmbH
Gatan Inc.
Gatan Service Corporation
GeneInsight, Inc.
Getloaded Corporation
Guangzhou MEDTEC Medical Device Co., Ltd
Handshake Software, Inc.
Hansco Automatisering B.V.
Hansen Technologies Corporation
Hansen Technologies Europe GmbH
Harbour Holding Corp.
Hardy Process Solutions
Horizon Software International, LLC
HRsmart Canada Inc.
HRsmart Czech Republic
HRsmart France SAS
HRsmart Germany GmbH
HRsmart, Inc.
HRsmart International
HRsmart International Holdings LLC
HRsmart Mexico
HRsmart SA (Pty) Ltd.
HRsmart Talent Management Solutions Europe Limited
HRsmart Ventures LLC
Innovative Product Achievements, LLC
Inovonics Corporation
INPUT, Inc.
Input S.A.R.L.
Instill Corporation
Integrated Designs, L.P.
Intellitrans Canada Ltd.
IntelliTrans Limited
Intellitrans Sweden AB
Intellitrans, LLC
IPA Acquisition Subsidiary, Inc.
ISL Finance SAS
ISL Holding, SAS
ISL Scientifique de Laboratorie—ISL, S.A.S.
iSqFt Holdings, Inc.
iSqFt, Inc.
iSqFt Parent Corporation
iSqFt Sub, Inc.
IT Canada Holdings, LLC
iTradenetwork Limited
iTradeNetwork, Inc.
Italy
China
Malaysia
Delaware
Malaysia
Delaware
Florida
California
India
Belgium
Virginia
Delaware
Germany
Pennsylvania
Pennsylvania
Delaware
Delaware
China
Georgia
Netherlands
Illinois
Germany
Delaware
California
Georgia
Canada
Czech Republic
France
Germany
Delaware
Cayman Islands
Texas
Mexico
South Africa
United Kingdom
Texas
Delaware
Colorado
Delaware
France
Delaware
Delaware
Canada
United Kingdom
Sweden
Delaware
Delaware
France
France
France
Delaware
Delaware
Delaware
Delaware
Delaware
United Kingdom
Delaware
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
69
Name of Subsidiary
Jurisdiction of Incorporation/Organization
Job Access LTDA
K/S Roper Holding
K/S Roper Investments
Link Logistics Holding LLC
Logitech Limited
Lumenera Corporation
Managed Health Care Associates, Inc.
Marumoto Struers K.K.
Med Group I, Inc.
MED Group Parent, Inc.
Med Holdings, LLC
Med Operating, LLC
Media Cybernetics, Inc.
Medical Equipment Distributors II, L.P.
Medical Equipment Distributors, Inc.
Medical Information Professional Systems GmbH
Medical Information Professional Systems NV
MEDTEC, Inc.
Metrix Instrument Co., L.P.
MHA Long Term Care Network, Inc.
MIPS Austria GesmbH
MIPS CZ s.r.o.
MIPS Deutschland GmbH & Co. KG
MIPS Deutschland Holding GmbH
MIPS France Sarl
MIPS Nederland B.V.
MIPS Schweiz AG
MIPS Software Iberica SL
MPR Readers Inc.
mySBX Corporation
Navigator Group Purchasing, Inc.
NDI Europe GmbH
Neptune Technology Group (Canada) Limited
Neptune Technology Group Inc.
Neptune Technology Group Mexico S.de R.L. de C.V.
Neptune Technology Group Mexico Services S.de R.L. de C.V.
Neptune Technology Group Services Inc.
Nippon Roper K.K.
Northern Digital Inc.
Novient, Inc.
Off-Campus Advantage, LLC
Omega Legal Systems, Inc.
On Center Holdings, Inc.
On Center Intermediate Holdings, Inc.
On Center Software, Inc.
PAC Denmark ApS
PAC GmbH
PAC Instruments Asia PTE. Ltd.
PAC (Shanghai) Co. Ltd.
PB Bidco Limited
PB Holdco Limited
PB Midco Limited
PB Topco Limited
Petroleum Analyzer Company L.P.
PGP UK Limited
Phase Analyzer Company Ltd.
Project Diamond Intermediate Holdings Corporation
QSC 1208 Limited
Brazil
Denmark
Denmark
Delaware
United Kingdom
Canada
Delaware
Japan
Delaware
Delaware
Delaware
Delaware
Delaware
Texas
Delaware
Germany
Belgium
Iowa
Delaware
Delaware
Austria
Czech Republic
Germany
Germany
France
Netherlands
Switzerland
Spain
Delaware
Delaware
Tennessee
Germany
Canada
Delaware
Mexico
Mexico
Delaware
Japan
Canada
Georgia
Delaware
Arizona
Delaware
Delaware
Texas
Netherlands
Germany
Singapore
China
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Delaware
Scotland
Canada
Delaware
United Kingdom
70
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Name of Subsidiary
Jurisdiction of Incorporation/Organization
QSC 1209 Limited
Quantitative Imaging Corporation
Rebate Tracking Group, LLC
Redlake MASD, LLC
RF IDeas, Inc.
RI Marketing India Private Limited
RIL Holding Limited
RMT, Inc.
Roda Deaco Valve Inc.
Roper Brasil Comercio E Promocao De Productos E Servicos LTDA
Roper Canada Holdings, Inc.
Roper Canada Holdings LP
Roper Canada Partners, Inc.
Roper Capital Deutschland GmbH
Roper Canada UK Limited
Roper Denmark UK Limited
Roper DK Sub Sarl
Roper Engineering s.r.o.
Roper Europe GmbH
Roper Germany GmbH
Roper Germany GmbH & Co. KG
Roper Germany UK Limited
Roper GM Denmark Holdings ApS
Roper Holdings Limited
Roper Holdings, Inc.
Roper Industrial Holdings LLC
Roper Industrial Products Investment Company
Roper Industries, Inc.
Roper Industries Denmark ApS
Roper Industries Deutschland GmbH
Roper Industries L.P.
Roper Industries Limited
Roper Industries Manufacturing (Shanghai) Co., Ltd.
Roper Industries Mauritius Ltd.
Roper Industries UK Limited
Roper International Holding, Inc.
Roper LLC
Roper Lux Sub S.a.r.l.
Roper Luxembourg Finance S.a.r.l.
Roper Luxembourg Holdings S.a.r.l.
Roper Luxembourg S.a.r.l.
Roper Luxembourg UK Holdings S.a.r.l.
Roper Middle East Ltd.
Roper Pump Company
Roper Scientific B.V.
Roper Scientific GmbH
Roper Scientific SAS
Roper Scientific, Inc.
Roper Scot LP
Roper Southeast Asia LLC
Roper Swiss Finance GmbH
Roper UK Investments Limited
Roper UK, Ltd.
Roper-Mex, L.P.
Ropintassco 1, LLC
Ropintassco 2, LLC
Ropintassco 3, LLC
Ropintassco 4, LLC
United Kingdom
Canada
Florida
Delaware
Delaware
India
United Kingdom
Arizona
Canada
Brazil
Canada
Canada
Canada
Germany
United Kingdom
United Kingdom
Luxembourg
Czech Republic
Germany
Germany
Germany
United Kingdom
Denmark
United Kingdom
Delaware
Delaware
Iowa
Delaware
Denmark
Germany
Canada
United Kingdom
China
Mauritius
United Kingdom
Delaware
Russian Federation
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Dubai (FZE)
Delaware
Netherlands
Germany
France
Delaware
United Kingdom
Delaware
Switzerland
United Kingdom
United Kingdom
Delaware
Delaware
Delaware
Delaware
Delaware
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
71
Name of Subsidiary
Jurisdiction of Incorporation/Organization
Ropintassco 5, LLC
Ropintassco 6, LLC
Ropintassco 7, LLC
Ropintassco Holdings, L.P.
RT Merger Sub, Inc.
Shanghai Roper Industries Trading Co., Ltd.
SHP Group Holdings, Inc.
Sinmed Holding International B.V.
SIRA, LLC
Societe de Distribution de Logiciels Medicaux
SoftWriters, Inc.
Softwriters Holdings, Inc.
Sohnar, Inc.
Sohnar Limited
Sohnar Pty Ltd
Star Purchasing Services, LLC
Strata Acquisition Subsidiary, Inc.
Strata Decision Technology Holdings LLC
Strata Decision Technology LLC
Strata Parallel II Inc.
Strategic Healthcare Programs Blocker LLC
Strategic Healthcare Programs Blocker 2, Inc.
Strategic Healthcare Programs, L.L.C.
Strategic Healthcare Programs Holdings, LLC
Struers (Shanghai) International Trading Ltd.
Struers A/S
Struers GmbH
Struers Inc.
Struers Limited
Struers Limited
Struers SAS
Student Advantage, LLC
Sunquest Europe Limited
Sunquest Holdings, Inc.
Sunquest Information Systems (Europe) Limited
Sunquest Information Systems (India) Private Limited
Sunquest Information Systems (International) Limited
Sunquest Information Systems Canada, Inc.
Sunquest Information Systems, Inc.
Sunquest Information Systems Pty Ltd
Taupo Holdings, Inc.
Technolog Group Limited
Technolog Holdings Ltd.
Technolog Limited
Technolog SARL
Telomere Inc.
The CBORD Group, Inc.
The Tidewater Healthcare Shared Services Group, Inc.
The Washington Management Group, Inc.
TLP Holdings, LLC
Transcore Atlantic, Inc.
Transcore CNUS, Inc.
Transcore Holdings, Inc.
Transcore ITS, LLC
Transcore Link Logistics Corporation
Transcore Nova Scotia Corporation
Transcore Partners, LLC
Transcore Quebec Corporation Inc.
Delaware
Delaware
Delaware
Delaware
Delaware
China
Delaware
Netherlands
Delaware
France
Delaware
Delaware
Delaware
United Kingdom
Australia
Wisconsin
Delaware
Delaware
Illinois
Delaware
Delaware
Delaware
Delaware
Delaware
China
Denmark
Germany
Delaware
United Kingdom
Canada
France
Delaware
United Kingdom
Delaware
United Kingdom
India
United Kingdom
Canada
Pennsylvania
Australia
Delaware
United Kingdom
United Kingdom
United Kingdom
France
Delaware
Delaware
Pennsylvania
District of Columbia
Delaware
Delaware
Delaware
Delaware
Delaware
Canada
Canada
Delaware
Canada
72
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
Name of Subsidiary
Jurisdiction of Incorporation/Organization
TransCore Transportation Systems Mauritius Private Limited
Transcore, LP
Trinity Integrated Systems Limited
UHF Purchasing Services, LLC
Union Square Software Limited
Union Square Software (International) Limited
Union Square Software Pty
Union Square Software Inc.
Uson L.P.
Uson Limited
Utilitec Limited
Utilitec Services Limited
Utility Data Services Limited
Verathon Holdings (Delaware) Inc.
Verathon Inc.
Verathon Medical (Australia) Pty Limited
Verathon Medical (Canada) ULC
Verathon Medical (Europe) B.V.
Verathon Medical (France) SARL
Verathon Medical (Hong Kong) Limited
Verathon Medical (Japan) K.K.
Verathon Medical (UK) Ltd.
Verathon Medical Inc.
Viastar Services, LP
Viatran Corporation
Walter Herzog GmbH
WorkBook APAC Ltd.
Workbook Software A/S
XTS Software Corporation
Zetec (Shanghai) Co., Ltd.
Zetec France
Zetec Korea, Inc.
Zetec Rental LLC
Zetec Services, Inc.
Zetec, Inc.
EXHIBIT 23.1
Mauritius
Delaware
United Kingdom
Delaware
United Kingdom
United Kingdom
Australia
Canada
Delaware
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Delaware
Washington
Australia
Canada
Netherlands
France
Hong Kong
Japan
United Kingdom
Washington
Texas
New York
Germany
Vietnam
Denmark
Oregon
China
France
Delaware
Delaware
Delaware
Washington
CONSENT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-208200) and Form
S-8 (No. 333-211671, 333-35648, 333-105919, 333-135700, 333-182779, 333-35666, 333-35672, 333-36897 and 333-105920) of
Roper Technologies, Inc. of our report dated February 23, 2018 relating to the financial statements, financial statement schedule
and the effectiveness of internal control over financial reporting, which appears in this Form 10 K.
/s/ PricewaterhouseCoopers LLP
Certified Public Accountants
Tampa, Florida
February 23, 2018
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
73
APPENDIX—RECONCILIATIONS
TABLE 1: ADJUSTED GROSS MARGIN RECONCILIATION
(in millions)
GAAP Revenue
Purchase accounting adjustment to acquired deferred revenue
Rounding
Adjusted Revenue
GAAP Gross Profit
Purchase accounting adjustment to acquired deferred revenue
Purchase accounting adjustment for commission expense and
acquisition-related inventory step-up charge
Rounding
Adjusted Gross Profit
Adjusted Gross Margin
TABLE 2: EBITDA AND EBITDA MARGIN RECONCILIATION
(in millions, except percentages)
GAAP Revenue
Purchase accounting adjustment to acquired deferred revenue
Rounding
Adjusted Revenue (A)
GAAP Net Earnings
Taxes
Interest expense
Depreciation
Amortization
Purchase accounting adjustment to acquired deferred revenue
Purchase accounting adjustment for commission expense
Gain on sale of divested Energy product line
Impairment charge on minority investment
Acquisition-related expenses deemed significant
Acquisition-related inventory step-up charge
Debt extinguishment charge
Rounding
Adjusted EBITDA (B)
Adjusted EBITDA Margin (B)/(A)
TABLE 3: CASH FLOW RECONCILIATION
(in millions)
GAAP Operating Cash Flow
Cash taxes related to 2015 sale of Abel Pump
Adjusted Operating Cash Flow
Capital expenditures
Capitalized software expenditures
Rounding
Adjusted Free Cash Flow
2017
2012
2007
$ 4,607
57
1
$ 4,665
$ 2,865
57
—
—
$2,993
9
1
$2,102
—
—
$3,003
$2,102
$1,672
9
$1,058
—
—
—
—
—
$ 2,922
$1,681
$1,058
62.6%
56.0%
50.4%
2017
$ 4,607
57
1
$ 4,665
$ 972
63
181
50
295
57
(5)
(9)
2
—
—
—
(1)
$ 1,605
2016
2012
2007
$3,790
15
—
$2,993
9
1
$2,102
—
—
$3,805
$3,003
$2,102
$ 659
282
112
37
203
15
—
—
—
6
—
1
—
$ 483
203
68
38
117
9
—
—
—
6
—
1
—
$ 246
131
59
32
61
—
—
—
—
—
—
—
—
$1,315
$ 925
$ 529
34.4%
34.6%
30.8%
25.2%
2017
2016
$ 1,234
—
$ 1,234
(49)
(11)
1
$ 964
37
$1,001
(37)
(3)
—
$ 1,175
$ 961
(1) Net working capital defined as inventory + accounts receivable + unbilled receivables – accounts payable – accrued liabilities – deferred
revenue. Excludes acquisitions completed in each quarter and dividend accrual.
74
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
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ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
75
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76
ROPER TECHNOLOGIE S • 2017 ANNUAL REPORT
BOARD OF DIRECTORS
Amy Woods Brinkley, John F. Fort III, Brian D. Jellison, Robert D. Johnson, Robert E. Knowling,
Jr., Wilbur J. Prezzano, Laura G. Thatcher, Richard F. Wallman, Christopher Wright
Newly Appointed Director:
Consistent with our principles on board refreshment, Shellye L. Archambeau recently joined
our Board and is a nominee for re-election at our 2018 Annual Meeting of Shareholders.
Ms. Archambeau brings extensive expertise in technology, ecommerce, risk management
and corporate governance. We look forward to working with Ms. Archambeau as she
brings her experience to the Board.
CORPORATE INFORMATION
TRANSFER AGENT
Computershare
462 South 4th Street, Suite 1600
Louisville, KY 40202
1-800-736-3001
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLC
SHAREHOLDER INFORMATION
Ticker Symbol: ROP
Roper’s common stock is listed on the
New York Stock Exchange with options
trading conducted on the Chicago Board
Options Exchange.
ANNUAL REPORT ON FORM 10-K
Any shareholder wishing for a copy of Roper’s
2017 Annual Report on Form 10-K filed with
the Securities and Exchange Commission
may obtain one without charge by contacting:
Investor Relations
Roper Technologies, Inc.
6901 Professional Parkway East
Suite 200
Sarasota, Florida 34240
+1 (941) 556-2601
Investor-relations@ropertech.com
Annual Report Design by Curran & Connors, Inc. / www.curran-connors.com
6901 Professional Parkway East, Suite 200
Sarasota, Florida 34240
Tel +1 941 556 2601
www.ropertech.com