Fortive CorpFTV

Fortive Corp Leases Disclosure

10-KFiled Feb 25, 20262 min read
NOTE 7. LEASES
We determine if an arrangement is or contains a lease at inception and recognize a right-of-use (“ROU”) asset and a lease liability for all leases with terms greater than 12 months. We have operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations, and certain equipment, primarily automobiles. Many leases include optional terms, ranging from options to terminate the lease in less than one year to options to extend the lease for up to 15 years. We include optional periods as part of the lease term when we determine that we are reasonably certain to exercise the renewal option or we will not early terminate the lease. Reasonably certain is based on economic incentives and represents a high threshold. We have lease agreements with lease and non-lease components, and we have elected the practical expedient for all underlying asset classes to account for the lease and related non-lease component(s) as a single lease component.
Supplemental information related to operating leases for each period is presented as follows ($ in millions):
As of December 31,
 20252024
Right-of-use (“ROU”) assets (a)
$96.1 $91.8 
Operating lease liabilities (b)
100.6 97.9 
(a) ROU assets are recorded in the Consolidated Condensed Balance Sheets within Other assets.
(b) Operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Accrued expenses and other current liabilities, and Other long-term liabilities.
Year Ended December 31,
 202520242023
Operating lease costs$30.6 $32.0 $34.4 
Cash paid for operating leases
$31.5 $32.6 $33.0 
ROU assets obtained in exchange for operating lease obligations
17.5 4.2 13.0 
The following table presents the maturities of our operating lease liabilities as of December 31, 2025 ($ in millions):
2026$25.4 
202725.1 
202818.8 
202914.6 
20307.5 
Thereafter15.3 
Total lease payments106.7 
Less: imputed interest(6.1)
Total operating lease liabilities$100.6 
As of December 31, 2025 and 2024, the weighted average lease term of our operating leases were both approximately 7 years, and the weighted average discount rate of our operating leases was 3.1% and 3.2%, respectively. We primarily use our incremental borrowing rate as the discount rate for our operating leases, as we are generally unable to determine the interest rate implicit in the lease.
As of December 31, 2025, operating leases for which the lease term had not yet commenced were immaterial.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Feb 26, 2021
2019Feb 27, 2020
2017Feb 28, 2018
2016Feb 28, 2017

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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