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Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Stock-Based Compensation Costs The following summarizes aggregate intrinsic value and cash receipts related to stock option exercise activity under the Stock Plan and the Danaher Plans for the years ended December 31 (in millions):
 
2018
 
2017
 
2016
Aggregate intrinsic value of stock options exercised
$
68.7

 
$
42.3

 
$
76.7

Cash receipts from stock options exercised(a)
$
39.3

 
$
26.0

 
$
59.2

 
 
 
 
 
 
(a) Cash receipts prior to the Separation were recorded as an increase to Former Parent's Investment. This amount was $53.3 million in 2016.
The following summarizes the components of our stock-based compensation expense under the Stock Plan and the Danaher Plans for the years ended December 31 ($ in millions):
 
2018
 
2017
 
2016
Stock Awards:
 
 
 
 
 
Pretax compensation expense
$
30.5

 
$
26.9

 
$
25.4

Income tax benefit
(6.3
)
 
(8.7
)
 
(8.4
)
Stock Award expense, net of income taxes
24.2

 
18.2

 
17.0

Stock options:
 
 
 
 
 
Pretax compensation expense
20.3

 
17.3

 
15.3

Income tax benefit
(4.2
)
 
(5.7
)
 
(5.1
)
Stock option expense, net of income taxes
16.1

 
11.6

 
10.2

Total stock-based compensation:
 
 
 
 
 
Pretax compensation expense
50.8

 
44.2

 
40.7

Income tax benefit
(10.5
)
 
(14.4
)
 
(13.5
)
Total stock-based compensation expense, net of income taxes
$
40.3

 
$
29.8

 
$
27.2
Schedule of Future Compensation The following summarizes the unrecognized compensation cost for the Stock Plan awards as of December 31, 2018. This compensation cost is expected to be recognized over a weighted average period of approximately three years, representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):
Stock Awards
$
44.8

Stock options
46.2

Total unrecognized compensation cost
$
91.0
Schedule of Assumptions Used The following summarizes the assumptions used in the Black-Scholes model to value stock options granted under the Stock Plan and the Danaher Plans during the years ended December 31:
 
2018
 
2017
 
2016
Risk-free interest rate
2.71% - 2.96%

 
1.9% - 2.26%

 
1.21% - 1.77%

Volatility (a)
18.8
%
 
20.9
%
 
24.3
%
Dividend yield (b)
0.4
%
 
0.5
%
 
0.6
%
Expected years until exercise
5.5 - 8.0

 
5.5 - 8.0

 
5.5 - 8.0

Weighted average fair value at date of grant
$
18.67

 
$
13.43

 
$
11.50

 
 
 
 
 
 
(a) Beginning August 2018, expected volatility was based on a weighted average blend of the company’s historical stock price volatility from July 2, 2016 (the date of separation) through the stock option grant date and the average historical stock price volatility of a group of peer companies for the expected term of the options. The weighted average volatility from July 2, 2016 to July 2018 was estimated based on an average historical stock price volatility of a group of peer companies given our limited trading history. Weighted average volatility for the period prior to the Separation was based on implied volatility from traded options on Danaher’s stock and the historical volatility of Danaher’s stock.
(b) The dividend yield post-Separation is calculated by dividing our annual dividend, based on the most recent quarterly dividend rate, by Fortive’s closing stock price on the grant date. The dividend yield for the period prior to the Separation was calculated by dividing Danaher’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date.
Schedule of Stock Option Activity The following summarizes option activity under the Stock Plan and the Danaher Plans for the years ended December 31, 2018, 2017 and 2016 (in millions, except price per share and numbers of years):
 
Options(c)
 
Weighted
Average
Exercise
Price
 
Weighted 
Average
Remaining
Contractual Term
(years)
 
Aggregate
Intrinsic
Value
Outstanding as of January 1, 2016
5.8

 
$
56.00

 
 
 
 
Granted
1.8

 
 
 
 
 
 
Exercised
(1.6
)
 
 
 
 
 
 
Canceled/forfeited
(0.8
)
 
 
 
 
 
 
Aggregate impact of conversion related to the Separation (a)
4.2

 
 
 
 
 
 
Outstanding as of December 31, 2016
9.4

 
33.23

 
 
 
 
Granted
1.7

 
58.07

 
 
 
 
Exercised
(1.0
)
 
24.77

 
 
 
 
Canceled/forfeited
(0.4
)
 
45.12

 
 
 
 
Outstanding as of December 31, 2017
9.7

 
38.09

 
 
 
 
Granted
1.7

 
76.67

 
 
 
 
Exercised
(1.4
)
 
28.99

 
 
 
 
Canceled/forfeited
(0.3
)
 
54.13

 
 
 
 
Outstanding as of December 31, 2018
9.7

 
$
46.25

 
6.3
 
$
228.4

Vested and expected to vest as of December 31, 2018 (b)
9.6

 
$
45.35

 
6.2
 
$
226.0

Vested as of December 31, 2018
4.6

 
$
33.20

 
4.4
 
$
160.3

 
 
 
 
 
 
 
 
(a) The “Aggregate impact of conversion related to the Separation” represents the additional stock options issued as a result of the Separation by applying the “concentration method” to convert employee options based on the ratio of the fair value of Danaher and Fortive common stock calculated using the closing prices as of July 1, 2016.
(b) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.
(c) This table excludes the stock option activity of the A&S Business employees.
Schedule of Stock Options by Exercise Price Range Options outstanding as of December 31, 2018 are summarized below (in millions; except price per share and numbers of years):
 
Outstanding
 
Vested
Exercise Price
Shares
 
Average Exercise Price
 
Average Remaining Life
(in years)
 
Shares
 
Average Exercise Price
$12.83 - $24.59
1.1

 
$
20.73

 
2
 
1.1

 
$
20.73

$24.93 - $35.44
1.5

 
28.93

 
4
 
1.5

 
28.93

$36.58 - $40.12
0.9

 
37.68

 
5
 
0.7

 
37.71

$42.18 - $47.51
2.7

 
42.96

 
7
 
1.0

 
43.08

$57.26 - $71.85
1.8

 
57.39

 
8
 
0.3

 
57.43

$74.30 - $79.69
1.7

 
76.67

 
9
 
—

 
74.42

Total shares
9.7

 
 
 
 
 
4.6

 
 

The following summarizes aggregate intrinsic value and cash receipts related to stock option exercise activity under the Stock Plan and the Danaher Plans for the years ended December 31 (in millions):
 
2018
 
2017
 
2016
Aggregate intrinsic value of stock options exercised
$
68.7

 
$
42.3

 
$
76.7

Cash receipts from stock options exercised(a)
$
39.3

 
$
26.0

 
$
59.2

 
 
 
 
 
 
(a) Cash receipts prior to the Separation were recorded as an increase to Former Parent's Investment. This amount was $53.3 million in 2016.
Schedule of Stock Unit Activity The following summarizes information related to Stock Award activity under the Stock Plan and the Danaher Plans for the years ended December 31, 2018, 2017 and 2016 (in millions; except price per share):
 
Number of
Stock Awards (b)
 
Weighted Average
Grant-Date
Fair Value
Unvested as of January 1, 2016
1.1

 
$
72.24

Granted
0.6

 
 
Vested
(0.3
)
 
 
Forfeited
(0.3
)
 
 
Aggregate impact of conversion related to the Separation (a)
1.0

 
 
Unvested as of December 31, 2016
2.1

 
39.20

Granted
0.5

 
57.79

Vested
(0.6
)
 
35.96

Forfeited
(0.1
)
 
43.94

Unvested as of December 31, 2017
1.9

 
45.92

Granted
0.6

 
77.78

Vested
(0.6
)
 
41.28

Forfeited
(0.1
)
 
53.23

Unvested as of December 31, 2018
1.8

 
$
57.63

 
 
 
 
(a) The “Aggregate impact of conversion related to the Separation” represents the additional Stock Awards issued as a result of the Separation by applying the “concentration method” to convert Stock Awards based on the ratio of the fair value of Danaher and Fortive common stock calculated using the closing prices as of July 1, 2016.
(b) The table excludes the stock award activity of the A&S Business employees.