Fortive CorpFTV
Fortive Corp Goodwill & Intangibles Disclosure
NOTE 4. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired, less assumed liabilities. We assess the goodwill of each of our reporting units for impairment at least annually as of the first day of the fourth quarter and as “triggering” events occur that indicate that it is more likely than not that an impairment exists. We performed both qualitative and quantitative impairment tests for reporting units, as determined to be appropriate.
We estimate the fair value of our reporting units primarily using a market approach, based on multiples of earnings before interest, taxes, depreciation, and amortization (“EBITDA”) determined by current trading market multiples of earnings for
companies operating in businesses similar to each of our reporting units, in addition to recent market available sale transactions of comparable businesses. In certain circumstances we also evaluate other factors including results of the estimated fair value utilizing a discounted cash flow analysis (i.e., an income approach), market positions of the businesses, comparability of market sales transactions, and financial and operating performance in order to validate the results of the market approach. If the estimated fair value of the reporting unit is less than its carrying value, we will impair the goodwill for the amount of the carrying value in excess of the fair value.
We performed goodwill impairment testing for our reporting units, and no goodwill impairment charges were recorded for the years ended December 31, 2025, 2024, and 2023. We assessed all potential indicators of impairment subsequent to the performance of the 2025 annual impairment test and, as a result, have not identified any impacts to goodwill. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings.
The following is a rollforward of our goodwill by segment ($ in millions):
| Intelligent Operating Solutions | Advanced Healthcare Solutions | Total | |||||||||||||||
| Balance, December 31, 2023 | $ | 4,148.9 | $ | 3,116.3 | $ | 7,265.2 | |||||||||||
| Measurement period adjustments for prior year acquisitions | 0.6 | — | 0.6 | ||||||||||||||
| Foreign currency translation and other | (27.8) | (22.0) | (49.8) | ||||||||||||||
| Balance, December 31, 2024 | 4,121.7 | 3,094.3 | 7,216.0 | ||||||||||||||
Attributable to current year acquisitions (a) | 15.1 | 0.8 | 15.9 | ||||||||||||||
| Foreign currency translation and other | 45.9 | 20.5 | 66.4 | ||||||||||||||
| Balance, December 31, 2025 | $ | 4,182.7 | $ | 3,115.6 | $ | 7,298.3 | |||||||||||
(a) Refer to Note 1 for further detail on the current year acquisitions. | |||||||||||||||||
Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31 ($ in millions):
| 2025 | 2024 | ||||||||||||||||||||||
Gross Carrying Amount (a) | Accumulated Amortization (a) | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
| Finite-lived intangibles: | |||||||||||||||||||||||
| Patents and technology | $ | 917.6 | $ | (671.1) | $ | 916.9 | $ | (573.7) | |||||||||||||||
| Customer relationships and other intangibles | 3,195.7 | (1,711.2) | 3,183.6 | (1,459.5) | |||||||||||||||||||
| Trademarks and trade names | 186.2 | (38.7) | 121.4 | (29.1) | |||||||||||||||||||
| Total finite-lived intangibles | 4,299.5 | (2,421.0) | 4,221.9 | (2,062.3) | |||||||||||||||||||
| Indefinite-lived intangibles: | |||||||||||||||||||||||
| Trademarks and trade names | 309.9 | — | 370.9 | — | |||||||||||||||||||
| Total intangibles | $ | 4,609.4 | $ | (2,421.0) | $ | 4,592.8 | $ | (2,062.3) | |||||||||||||||
(a) During the year ended December 31, 2025, certain trademarks and trade names were reclassified from indefinite-lived intangible assets to finite-lived intangibles. We performed an impairment test at the time of the reclassification and determined that no impairment had occurred. | |||||||||||||||||||||||
Total intangible amortization expense in 2025, 2024, and 2023 was $368 million, $369 million and $367 million, respectively. Based on the intangible assets recorded as of December 31, 2025, amortization expense is estimated to be $354 million during 2026, $324 million during 2027, $298 million during 2028, $222 million during 2029, and $143 million during 2030.
We evaluated events or circumstances that may indicate the carrying value of our intangible assets may not be fully recoverable during the year ended December 31, 2025, and recorded no impairments.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.