STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Costs

The following summarizes the components of our stock-based compensation expense under the Stock Plan for the years ended December 31 ($ in millions):

	2023		2022		2021
Stock Awards:
Pretax compensation expense	$	78.4	$	60.1	$	48.6
Income tax benefit	(11.0)		(8.7)		(7.9)
Stock Award expense, net of income taxes	67.4		51.4		40.7
Stock options:
Pretax compensation expense	34.9		33.7		28.8
Income tax benefit	(4.6)		(5.1)		(5.0)
Stock option expense, net of income taxes	30.3		28.6		23.8
Total stock-based compensation:
Pretax compensation expense	113.3		93.8		77.4
Income tax benefit	(15.6)		(13.8)		(12.9)
Total stock-based compensation expense, net of income taxes	$	97.7	$	80.0	$	64.5

Schedule of Future Compensation

Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):

Stock Awards	$	36.0
Stock options	88.4
Total unrecognized compensation cost	$	124.4

Schedule of Assumptions Used

The following summarizes the assumptions used in the Black-Scholes model to value stock options granted under the Stock Plan during the years ended December 31:

	2023		2022		2021
Risk-free interest rate	3.5% - 4.5%		1.7% - 3.9%		0.8% - 1.3%
Volatility (a)	28.6	%	29.3	%	27.2	%
Dividend yield (b)	0.4	%	0.4	%	0.4	%
Expected years until exercise	5.5 - 8.0		5.5 - 8.0		5.5 - 8.0
(a) Expected volatility is based on a weighted average blend of the company’s historical stock price volatility from July 2, 2016 (the date of separation from Danaher) through the stock option grant date and the average historical stock price volatility of a group of peer companies for the expected term of the options.
(b) The dividend yield is calculated by dividing our annual dividend, based on the most recent quarterly dividend rate, by Fortive’s closing stock price on the grant date.

Schedule of Stock Option Activity

The following summarizes option activity under the Stock Plan (in millions, except price per share and numbers of years):

	Options	Weighted Average Exercise Price	Weighted  Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2021	10.4	54.81
Granted	2.2	64.76
Exercised	(0.5)	38.19
Canceled/forfeited	(0.8)	65.56
Outstanding as of December 31, 2022	11.3	56.70
Granted	1.5	66.78
Exercised	(1.4)	45.21
Canceled/forfeited	(0.5)	66.21
Outstanding as of December 31, 2023	10.9	59.06	6	$	159.5
Vested and expected to vest as of December 31, 2023 (a)	10.7	58.95	6	$	158.3
Exercisable as of December 31, 2023	5.9	53.06	4	$	122.3
(a) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.

Schedule of Aggregate Intrinsic Value and Cash Receipts

The following summarizes aggregate intrinsic value and cash receipts related to stock options that were exercised under the Stock Plan for the years ended December 31 ($ in millions):

	2023		2022		2021
Aggregate intrinsic value of stock options exercised	$	35.9	$	12.4	$	55.9
Cash receipts from stock options exercised	$	51.5	$	17.6	$	52.4

Schedule of Stock Unit Activity

The following summarizes information related to Stock Award activity under the Stock Plan for the years ended December 31, 2023 and 2022 (in millions; except price per share):

	Number of Stock Awards	Weighted Average Grant-Date Fair Value
Unvested as of December 31, 2021	2.6	$	66.43
Granted	1.4	64.01
Vested	(0.5)	63.51
Forfeited	(0.4)	64.01
Unvested as of December 31, 2022	3.1	66.00
Granted	1.3	67.32
Vested	(0.8)	67.09
Forfeited	(0.3)	66.12
Unvested as of December 31, 2023	3.3	66.30