10-Q 1 iex-20240331.htm 10-Q iex-20240331
false2024Q1000083210112/3100008321012024-01-012024-03-3100008321012024-04-19xbrli:sharesiso4217:USD00008321012023-01-012023-03-31iso4217:USDxbrli:shares00008321012024-03-3100008321012023-12-310000832101us-gaap:CommonStockMember2023-12-310000832101us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-12-310000832101us-gaap:TreasuryStockCommonMember2023-12-310000832101us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310000832101us-gaap:RetainedEarningsMember2023-12-310000832101us-gaap:ParentMember2023-12-310000832101us-gaap:NoncontrollingInterestMember2023-12-310000832101us-gaap:RetainedEarningsMember2024-01-012024-03-310000832101us-gaap:ParentMember2024-01-012024-03-310000832101us-gaap:NoncontrollingInterestMember2024-01-012024-03-310000832101us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310000832101us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000832101us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-01-012024-03-310000832101us-gaap:CommonStockMember2024-03-310000832101us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-03-310000832101us-gaap:TreasuryStockCommonMember2024-03-310000832101us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310000832101us-gaap:RetainedEarningsMember2024-03-310000832101us-gaap:ParentMember2024-03-310000832101us-gaap:NoncontrollingInterestMember2024-03-310000832101us-gaap:CommonStockMember2022-12-310000832101us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-12-310000832101us-gaap:TreasuryStockCommonMember2022-12-310000832101us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000832101us-gaap:RetainedEarningsMember2022-12-310000832101us-gaap:ParentMember2022-12-310000832101us-gaap:NoncontrollingInterestMember2022-12-3100008321012022-12-310000832101us-gaap:RetainedEarningsMember2023-01-012023-03-310000832101us-gaap:ParentMember2023-01-012023-03-310000832101us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310000832101us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000832101us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-01-012023-03-310000832101us-gaap:CommonStockMember2023-03-310000832101us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-03-310000832101us-gaap:TreasuryStockCommonMember2023-03-310000832101us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310000832101us-gaap:RetainedEarningsMember2023-03-310000832101us-gaap:ParentMember2023-03-310000832101us-gaap:NoncontrollingInterestMember2023-03-3100008321012023-03-310000832101iex:IridianSpectralTechnologiesMember2023-05-192023-05-190000832101iex:NexsightLLCMember2023-05-190000832101iex:IridianSpectralTechnologiesMemberus-gaap:TradeNamesMember2023-05-192023-05-190000832101us-gaap:CustomerRelationshipsMemberiex:IridianSpectralTechnologiesMember2023-05-192023-05-190000832101iex:IridianSpectralTechnologiesMemberus-gaap:UnpatentedTechnologyMember2023-05-192023-05-190000832101iex:KZValveMember2023-12-142023-12-140000832101iex:STCLLCMember2023-12-140000832101iex:STCLLCMember2024-01-012024-03-310000832101iex:KZValveMemberus-gaap:TradeNamesMember2023-12-142023-12-140000832101us-gaap:CustomerRelationshipsMemberiex:KZValveMember2023-12-142023-12-140000832101iex:KZValveMemberus-gaap:UnpatentedTechnologyMember2023-12-142023-12-140000832101us-gaap:SellingGeneralAndAdministrativeExpensesMemberiex:IridianSpectralTechnologiesMember2024-01-012024-03-310000832101us-gaap:SellingGeneralAndAdministrativeExpensesMemberiex:MuonLLCMember2023-01-012023-03-31iex:segment0000832101iex:FluidAndMeteringTechnologiesMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMember2023-01-012023-03-310000832101us-gaap:IntersegmentEliminationMemberiex:FluidAndMeteringTechnologiesMember2024-01-012024-03-310000832101us-gaap:IntersegmentEliminationMemberiex:FluidAndMeteringTechnologiesMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:HealthAndScienceTechnologiesMember2024-01-012024-03-310000832101iex:HealthAndScienceTechnologiesMember2023-01-012023-03-310000832101us-gaap:IntersegmentEliminationMemberiex:HealthAndScienceTechnologiesMember2024-01-012024-03-310000832101us-gaap:IntersegmentEliminationMemberiex:HealthAndScienceTechnologiesMember2023-01-012023-03-310000832101iex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FireAndSafetyDiversifiedProductsMember2024-01-012024-03-310000832101iex:FireAndSafetyDiversifiedProductsMember2023-01-012023-03-310000832101us-gaap:IntersegmentEliminationMemberiex:FireAndSafetyDiversifiedProductsMember2024-01-012024-03-310000832101us-gaap:IntersegmentEliminationMemberiex:FireAndSafetyDiversifiedProductsMember2023-01-012023-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101us-gaap:IntersegmentEliminationMember2024-01-012024-03-310000832101us-gaap:IntersegmentEliminationMember2023-01-012023-03-310000832101us-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101us-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101us-gaap:CorporateNonSegmentMember2024-01-012024-03-310000832101us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2024-03-310000832101iex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2023-12-310000832101iex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-03-310000832101iex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-12-310000832101iex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-12-310000832101us-gaap:CorporateNonSegmentMember2024-03-310000832101us-gaap:CorporateNonSegmentMember2023-12-310000832101iex:FluidAndMeteringTechnologiesMemberiex:PumpsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:PumpsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:Water1Memberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:Water1Memberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMemberiex:EnergyMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMemberiex:EnergyMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:AgricultureMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:AgricultureMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:ValvesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:ValvesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:ScientificFluidicsandOpticsMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:ScientificFluidicsandOpticsMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:HealthAndScienceTechnologiesMemberiex:SealingSolutionsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:HealthAndScienceTechnologiesMemberiex:SealingSolutionsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:PerformancePneumaticTechnologiesMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:PerformancePneumaticTechnologiesMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:MaterialProcessingTechnologiesMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:MaterialProcessingTechnologiesMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:HealthAndScienceTechnologiesMemberiex:MicropumpMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:HealthAndScienceTechnologiesMemberiex:MicropumpMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberiex:FireandSafetyMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberiex:FireandSafetyMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:DispensingMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:DispensingMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:BandItMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:BandItMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMembercountry:USus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:HealthAndScienceTechnologiesMembercountry:USus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101country:USiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101country:USus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:HealthAndScienceTechnologiesMemberiex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberiex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:EuropeMemberiex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:EuropeMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:EuropeMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:EuropeMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMembersrt:AsiaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:AsiaMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:AsiaMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101srt:AsiaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:OtherGeographicalAreasMemberiex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:OtherGeographicalAreasMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:OtherGeographicalAreasMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:OtherGeographicalAreasMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000832101iex:FluidAndMeteringTechnologiesMembercountry:USus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:HealthAndScienceTechnologiesMembercountry:USus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101country:USiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101country:USus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMemberiex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:HealthAndScienceTechnologiesMemberiex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FireAndSafetyDiversifiedProductsMemberiex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:NorthAmericaExcludingUnitedStatesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:EuropeMemberiex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:EuropeMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:EuropeMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:EuropeMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:FluidAndMeteringTechnologiesMembersrt:AsiaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:AsiaMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:AsiaMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101srt:AsiaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:OtherGeographicalAreasMemberiex:FluidAndMeteringTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:OtherGeographicalAreasMemberiex:HealthAndScienceTechnologiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:OtherGeographicalAreasMemberiex:FireAndSafetyDiversifiedProductsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101iex:OtherGeographicalAreasMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000832101us-gaap:ProductConcentrationRiskMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-31xbrli:pure0000832101us-gaap:ProductConcentrationRiskMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000832101us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:TransferredOverTimeMember2023-01-012023-03-310000832101us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:TransferredOverTimeMember2024-01-012024-03-310000832101iex:BilledReceivablesMember2024-03-310000832101iex:BilledReceivablesMember2023-12-310000832101iex:FluidAndMeteringTechnologiesMember2023-12-310000832101iex:HealthAndScienceTechnologiesMember2023-12-310000832101iex:FireAndSafetyDiversifiedProductsMember2023-12-310000832101iex:FluidAndMeteringTechnologiesMember2024-03-310000832101iex:HealthAndScienceTechnologiesMember2024-03-310000832101iex:FireAndSafetyDiversifiedProductsMember2024-03-310000832101us-gaap:PatentsMember2024-03-310000832101us-gaap:PatentsMember2023-12-310000832101us-gaap:TradeNamesMember2024-03-310000832101us-gaap:TradeNamesMember2023-12-310000832101us-gaap:CustomerRelationshipsMember2024-03-310000832101us-gaap:CustomerRelationshipsMember2023-12-310000832101us-gaap:UnpatentedTechnologyMember2024-03-310000832101us-gaap:UnpatentedTechnologyMember2023-12-310000832101us-gaap:SoftwareDevelopmentMember2024-03-310000832101us-gaap:SoftwareDevelopmentMember2023-12-310000832101srt:WeightedAverageMember2024-03-310000832101iex:BanjoTradeNameMember2024-03-310000832101iex:BanjoTradeNameMember2023-12-310000832101iex:AkronBrasstradenameMember2024-03-310000832101iex:AkronBrasstradenameMember2023-12-310000832101us-gaap:SeniorNotesMemberiex:ThreePointThreeSevenPercentSeniorNotesMember2024-03-310000832101us-gaap:SeniorNotesMemberiex:ThreePointThreeSevenPercentSeniorNotesMember2023-12-310000832101iex:FivePointOneThreePercentSeniorNotesMemberus-gaap:SeniorNotesMember2024-03-310000832101iex:FivePointOneThreePercentSeniorNotesMemberus-gaap:SeniorNotesMember2023-12-310000832101iex:ThreePointZeroPercentSeniorNotesDueMay2030Memberus-gaap:SeniorNotesMember2024-03-310000832101iex:ThreePointZeroPercentSeniorNotesDueMay2030Memberus-gaap:SeniorNotesMember2023-12-310000832101iex:TwoPointSixTwoFivePercentSeniorNotesDue2031Memberus-gaap:SeniorNotesMember2024-03-310000832101iex:TwoPointSixTwoFivePercentSeniorNotesDue2031Memberus-gaap:SeniorNotesMember2023-12-310000832101us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-03-310000832101us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-12-310000832101us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2024-03-310000832101us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2023-12-310000832101us-gaap:RevolvingCreditFacilityMember2024-03-310000832101us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310000832101us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000832101us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310000832101us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000832101us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000832101us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000832101us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000832101us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000832101us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000832101us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000832101us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000832101us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310000832101us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-03-310000832101us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310000832101us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310000832101us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000832101us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000832101us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000832101us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000832101us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000832101us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-03-310000832101us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000832101us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-310000832101us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100008321012020-03-172020-03-1700008321012015-12-012015-12-010000832101us-gaap:EmployeeStockOptionMemberiex:EmployeesMember2024-01-012024-03-310000832101us-gaap:EmployeeStockOptionMember2024-01-012024-03-310000832101us-gaap:EmployeeStockOptionMember2023-01-012023-03-310000832101us-gaap:EmployeeStockOptionMember2023-12-310000832101us-gaap:EmployeeStockOptionMember2023-01-012023-12-310000832101us-gaap:EmployeeStockOptionMember2024-03-310000832101us-gaap:RestrictedStockMemberiex:EmployeesandNonemployeeDirectorsMember2024-01-012024-03-310000832101us-gaap:RestrictedStockMember2023-12-310000832101us-gaap:RestrictedStockMember2024-01-012024-03-310000832101us-gaap:RestrictedStockMember2024-03-310000832101iex:CashsettledRestrictedStockMember2024-01-012024-03-310000832101iex:CashsettledRestrictedStockMemberus-gaap:AccruedLiabilitiesMember2024-03-310000832101iex:CashsettledRestrictedStockMemberus-gaap:AccruedLiabilitiesMember2023-12-310000832101iex:CashsettledRestrictedStockMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-03-310000832101iex:CashsettledRestrictedStockMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000832101iex:CashsettledRestrictedStockMember2023-12-310000832101iex:CashsettledRestrictedStockMember2024-03-310000832101us-gaap:PerformanceSharesMember2024-01-012024-03-310000832101us-gaap:PerformanceSharesMember2023-01-012023-03-310000832101us-gaap:PerformanceSharesMember2023-12-310000832101us-gaap:PerformanceSharesMember2024-03-310000832101us-gaap:PerformanceSharesMember2024-01-312024-01-310000832101us-gaap:PerformanceSharesMember2024-01-012024-01-310000832101us-gaap:PerformanceSharesMember2024-02-012024-02-290000832101us-gaap:RestrictedStockMember2023-01-012023-03-310000832101iex:CashsettledRestrictedStockMember2023-01-012023-03-310000832101country:USus-gaap:PensionPlansDefinedBenefitMember2024-01-012024-03-310000832101us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2024-01-012024-03-310000832101country:USus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-03-310000832101us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-01-012023-03-310000832101us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-03-310000832101us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-03-310000832101us-gaap:PensionPlansDefinedBenefitMember2024-03-310000832101us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-03-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _____________________________ 
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedMarch 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period fromto
Commission File Number: 1-10235
IDEX CORPORATION
(Exact name of registrant as specified in its charter)
Delaware36-3555336
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3100 Sanders Road,Suite 301,Northbrook,Illinois60062
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (847498-7070
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareIEXNew York Stock Exchange
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.
Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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 whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes     No       
Number of shares of common stock of IDEX Corporation outstanding as of April 19, 2024: 75,695,352.
        


TABLE OF CONTENTS
 
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.















Cautionary Statement Under the Private Securities Litigation Reform Act

This quarterly report on Form 10-Q, including the “Overview,” “Results of Operations” and “Liquidity and Capital Resources” sections of this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company’s full year 2024 focus and the assumptions underlying these expectations, plant and equipment capacity for future growth, planned production, anticipated future acquisition behavior and capital deployment, inventory recalibration and future order stabilization and lead time, expectations regarding market sector contraction, recovery, stabilization or growth, availability and sufficiency of cash and financing alternatives and the anticipated benefits of the Company’s recent acquisitions, and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “management believes,” “the Company believes,” “the Company intends” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this report.

The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries; the impact of catastrophic weather events, natural disasters and public health threats; economic and political consequences resulting from terrorist attacks and wars; the Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity incidents; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the Company operates; developments with respect to trade policy and tariffs; interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters.

Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K and the Company’s subsequent quarterly reports filed with the Securities and Exchange Commission (“SEC”) and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this report, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.



PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(unaudited)

 Three Months Ended March 31,
 20242023
Net sales$800.5 $845.4 
Cost of sales443.1 462.9 
Gross profit357.4 382.5 
Selling, general and administrative expenses195.1 189.7 
Restructuring expenses and asset impairments1.1 0.5 
Operating income161.2 192.3 
Other (income) expense - net(2.7)(0.6)
Interest expense - net9.4 13.1 
Income before income taxes154.5 179.8 
Provision for income taxes33.2 40.0 
Net income121.3 139.8 
Net loss attributable to noncontrolling interest0.1  
Net income attributable to IDEX$121.4 $139.8 
Earnings per common share:
Basic earnings per common share attributable to IDEX$1.60 $1.85 
Diluted earnings per common share attributable to IDEX$1.60 $1.84 
Share data:
Basic weighted average common shares outstanding75.7 75.6 
Diluted weighted average common shares outstanding75.9 75.9 
    
See Notes to Condensed Consolidated Financial Statements
1

IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(unaudited)
 
 Three Months Ended March 31,
 20242023
Net income$121.3 $139.8 
Other comprehensive (loss) income:
Pension and other postretirement adjustments, net of tax(0.1)0.4 
Cumulative translation adjustment(64.3)36.6 
Other comprehensive (loss) income(64.4)37.0 
Comprehensive income56.9 176.8 
Comprehensive loss attributable to noncontrolling interest0.1  
Comprehensive income attributable to IDEX$57.0 $176.8 
See Notes to Condensed Consolidated Financial Statements
2

IDEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions, except per share amounts)
(unaudited)
 
March 31, 2024December 31, 2023
ASSETS
Current assets
Cash and cash equivalents$616.3 $534.3 
Receivables - net437.9 427.8 
Inventories - net426.0 420.8 
Other current assets74.3 63.4 
Total current assets1,554.5 1,446.3 
Property, plant and equipment - net of accumulated depreciation of $556.1 and $545.7, respectively
428.2 430.3 
Goodwill2,803.0 2,838.3 
Intangible assets - net969.1 1,011.8 
Other noncurrent assets134.6 138.5 
Total assets$5,889.4 $5,865.2 
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable$185.8 $179.7 
Accrued expenses274.1 271.5 
Current portion of long-term borrowings0.7 0.6 
Dividends payable 48.5 
Total current liabilities460.6 500.3 
Long-term borrowings - net1,322.9 1,325.1 
Deferred income taxes286.0 291.9 
Other noncurrent liabilities201.6 206.7 
Total liabilities2,271.1 2,324.0 
Commitments and contingencies (Note 14)
Shareholders’ equity
Preferred stock:
Authorized: 5.0 million shares, $.01 per share par value; Issued: None
  
Common stock:
Authorized: 150.0 million shares, $.01 per share par value
Issued: 90.1 million shares at March 31, 2024 and 90.1 million shares at December 31, 2023
0.9 0.9 
Treasury stock at cost: 14.2 million shares at March 31, 2024 and 14.3 million shares at December 31, 2023
(1,179.3)(1,187.0)
Additional paid-in capital851.5 839.0 
Retained earnings4,055.7 3,934.3 
Accumulated other comprehensive loss(110.2)(45.8)
Total shareholders’ equity3,618.6 3,541.4 
Noncontrolling interest(0.3)(0.2)
Total equity3,618.3 3,541.2 
Total liabilities and equity$5,889.4 $5,865.2 
See Notes to Condensed Consolidated Financial Statements
3

IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In millions)
(unaudited)

 Common Stock SharesCommon
Stock and
Additional
Paid-In Capital
Treasury Stock SharesTreasury
Stock
Accumulated Other Comprehensive LossRetained
Earnings
Total
Shareholders’
Equity
Noncontrolling InterestTotal Equity
Balance, December 31, 202390.1 $839.9 14.3 $(1,187.0)$(45.8)$3,934.3 $3,541.4 $(0.2)$3,541.2 
Net income (loss)— — — — — 121.4 121.4 (0.1)121.3 
Cumulative translation adjustment— — — — (64.3)— (64.3)— (64.3)
Net change in retirement obligations (net of tax of $0.0)
— — — — (0.1)— (0.1)— (0.1)
Net issuance of shares of common stock (net of tax of $2.2)
— — (0.1)7.7 — — 7.7 — 7.7 
Share-based compensation— 12.5 — — — — 12.5 — 12.5 
Balance, March 31, 202490.1 $852.4 14.2 $(1,179.3)$(110.2)$4,055.7 3,618.6 $(0.3)$3,618.3 

 Common Stock SharesCommon
Stock and
Additional
Paid-In Capital
Treasury Stock SharesTreasury
Stock
Accumulated Other Comprehensive LossRetained
Earnings
Total
Shareholders’
Equity
Noncontrolling InterestTotal Equity
Balance, December 31, 202290.1 $818.1 14.5 $(1,184.3)$(126.2)$3,531.7 $3,039.3 $0.3 $3,039.6 
Net income— — — — — 139.8 139.8 — 139.8 
Cumulative translation adjustment— — — — 36.6 — 36.6 — 36.6 
Net change in retirement obligations (net of tax of $0.2)
— — — — 0.4 — 0.4 — 0.4 
Net issuance of shares of common stock (net of tax of $1.8)
— — (0.1)0.3 — — 0.3 — 0.3 
Share-based compensation— 12.8 — — — — 12.8 — 12.8 
Balance, March 31, 202390.1 $830.9 14.4 $(1,184.0)$(89.2)$3,671.5 $3,229.2 $0.3 $3,229.5 

See Notes to Condensed Consolidated Financial Statements
4

IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(unaudited)
 Three Months Ended March 31,
 20242023
Cash flows from operating activities
Net income$121.3 $139.8 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation16.2 12.8 
Amortization of intangible assets24.6 23.6 
Share-based compensation expense12.5 12.8 
Deferred income taxes0.2 (0.2)
Changes in (net of the effect from acquisitions and foreign currency translation):
Receivables - net(12.2)(0.7)
Inventories - net(9.5)(23.3)
Other current assets(10.9)(11.1)
Trade accounts payable8.9 7.6 
Deferred revenue6.8 10.2 
Accrued expenses(1.5)(24.9)
Other - net0.2 1.3 
Net cash flows provided by operating activities156.6 147.9 
Cash flows from investing activities
Capital expenditures(20.0)(26.6)
Purchases of marketable securities (3.2)
Other - net 0.6 
Net cash flows used in investing activities(20.0)(29.2)
Cash flows from financing activities
Cash dividends paid to shareholders(48.5)(45.5)
Proceeds from share issuances, net of shares withheld for taxes7.7 0.3 
Other - net(0.2) 
Net cash flows used in financing activities(41.0)(45.2)
Effect of exchange rate changes on cash and cash equivalents(13.6)7.0 
Net increase in cash and cash equivalents82.0 80.5 
Cash and cash equivalents at beginning of year534.3 430.2 
Cash and cash equivalents at end of period$616.3 $510.7 
Supplemental cash flow information
Cash paid for:
Interest$2.4 $4.1 
Income taxes - net18.4 20.7 

See Notes to Condensed Consolidated Financial Statements
5


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)

1.    Basis of Presentation and Significant Accounting Policies

The Condensed Consolidated Financial Statements of IDEX Corporation (“IDEX” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The statements are unaudited but include all adjustments, consisting only of recurring items, except as noted, that the Company considers necessary for a fair presentation of the information set forth herein. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the entire year.

The Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in this report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Recently Issued Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves the disclosures required for reportable segments in the Company’s annual and interim financial statements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Adoption of this ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on the Consolidated Financial Statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to disclose standard categories in tax rate reconciliations, additional information for reconciling items that meet a quantitative threshold and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on the Consolidated Financial Statements and disclosures.

2.    Acquisitions

All of the Company’s acquisitions of businesses have been accounted for under Accounting Standards Codification (“ASC”) 805, Business Combinations. Accordingly, the assets and liabilities of the acquired companies, after adjustments to reflect the fair values assigned to the assets and liabilities, have been included in the Condensed Consolidated Balance Sheets from their respective dates of acquisition. The results of operations of businesses acquired have been included in the Condensed Consolidated Statements of Income since their respective dates of acquisition. Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on the Condensed Consolidated Financial Statements individually or in the aggregate.

The Company makes a preliminary allocation of the purchase price for each acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information, primarily related to the valuations of these assets and liabilities, and continues to integrate the newly acquired business, the Company will refine the estimates of fair value and more accurately allocate the purchase price through the completion of the measurement period, which is not to exceed one year from the date of acquisition. Only items identified as of the acquisition date are considered for subsequent adjustment.

6


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
2023 Acquisitions

Iridian

On May 19, 2023, the Company acquired Iridian Spectral Technologies (“Iridian”) in a stock acquisition. Iridian is a global leader in designing and manufacturing thin-film, multi-layer optical filters serving the laser communications, telecommunications and life sciences markets and expands the Company’s array of optical technology offerings. Headquartered in Ottawa, Canada, Iridian operates in the Company’s Scientific Fluidics & Optics reporting unit within the Health & Science Technologies segment. Iridian was acquired for cash consideration of $109.8 million. The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $52.7 million and $45.6 million, respectively. The goodwill is not deductible for tax purposes.

As of March 31, 2024, the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows:
Total
Current assets, net of cash acquired$10.6 
Property, plant and equipment19.9 
Goodwill52.7 
Intangible assets45.6 
Other noncurrent assets5.4 
Total assets acquired134.2 
Current liabilities(1.2)
Deferred income taxes(18.3)
Other noncurrent liabilities(4.9)
Net assets acquired
$109.8 

Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.

The acquired intangible assets and weighted average amortization periods are as follows:
TotalWeighted Average Life
Trade names$5.2 15
Customer relationships29.3 12
Unpatented technology11.1 11
Acquired intangible assets$45.6 

STC

On December 14, 2023, the Company acquired STC Material Solutions (“STC”) in a stock acquisition. STC specializes in the design and manufacturing of technical ceramics and hermetic sealing products for critical applications in the semiconductor, aerospace and defense, industrial technology, medical technology and energy markets. Headquartered in St. Albans, Vermont, with additional operations in Santa Ana, California, STC operates in the Company’s Scientific Fluidics & Optics reporting unit within the Health & Science Technologies segment. STC was acquired for cash consideration of $200.4 million. The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $104.5 million and $92.3 million, respectively. The goodwill is not deductible for tax purposes.

7


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
As of March 31, 2024, the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows:
Total
Current assets, net of cash acquired$16.9 
Property, plant and equipment12.5 
Goodwill104.5 
Intangible assets92.3 
Other noncurrent assets2.9 
Total assets acquired229.1 
Current liabilities(5.5)
Deferred income taxes(20.5)
Other noncurrent liabilities(2.7)
Net assets acquired(1)
$200.4 

(1) The Company finalized the purchase price of STC, resulting in a $1.6 million downward adjustment to the purchase price. Funds were received by the Company in April 2024.

Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.

The acquired intangible assets and weighted average amortization periods are as follows:
TotalWeighted Average Life
Trade names$9.3 15
Customer relationships63.0 15
Unpatented technology20.0 11
Acquired intangible assets$92.3 

Acquisition-Related Costs

The Company incurred $1.3 million and $1.1 million of acquisition-related costs during the three months ended March 31, 2024 and 2023, respectively. These costs were recorded in Selling, general and administrative expenses and were related to completed transactions, pending transactions and potential transactions, including transactions that ultimately were not completed. The Company also recorded a $2.5 million fair value inventory step-up charge associated with the completed 2023 acquisition of STC in Cost of sales during the three months ended March 31, 2024.

3.    Business Segments

IDEX has three reportable business segments: Fluid & Metering Technologies (“FMT”), Health & Science Technologies (“HST”) and Fire & Safety/Diversified Products (“FSDP”). When determining these reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics.

Information on the Company’s business segments is presented below. The Company uses Adjusted EBITDA as its principal measure of segment performance. Intersegment sales are contracted with terms equivalent to those of an arm’s-length transaction.

8


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
 Three Months Ended March 31,
 20242023
NET SALES
Fluid & Metering Technologies
External customers$313.5 $321.1 
Intersegment sales0.2 0.7 
Total segment sales313.7 321.8 
Health & Science Technologies
External customers309.4 350.3 
Intersegment sales0.7 0.7 
Total segment sales310.1 351.0 
Fire & Safety/Diversified Products
External customers177.6 174.0 
Intersegment sales0.4 0.4 
Total segment sales178.0 174.4 
Intersegment eliminations(1.3)(1.8)
Net sales$800.5 $845.4 
ADJUSTED EBITDA
Fluid & Metering Technologies$105.4 $106.2 
Health & Science Technologies81.4 100.7 
Fire & Safety/Diversified Products51.4 49.7 
Segment Adjusted EBITDA238.2 256.6 
Corporate and other(1)
(29.9)(26.8)
Adjusted EBITDA208.3 229.8 
Interest expense - net(9.4)(13.1)
Depreciation(16.2)(12.8)
Amortization of intangible assets(24.6)(23.6)
Fair value inventory step-up charges(2.5) 
Restructuring expenses and asset impairments(1.1)(0.5)
Income before income taxes$154.5 $179.8 

(1) Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and other.

March 31, 2024December 31, 2023
ASSETS
Fluid & Metering Technologies$1,702.6 $1,674.7 
Health & Science Technologies3,193.6 3,262.4 
Fire & Safety/Diversified Products804.3 792.6 
Corporate and other188.9 135.5 
Total assets$5,889.4 $5,865.2 


9


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
4.    Revenue

Disaggregation of Revenue

The Company has a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. The Company disaggregates revenue from contracts with customers by reporting unit and geographical region for each segment as the Company believes it best depicts how the amount, nature, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue, or Net sales, was attributed to geographical region based on the location of the customer. The following tables present revenue disaggregated by reporting unit and geographical region.

Revenue by reporting unit for the three months ended March 31, 2024 and 2023 was as follows:

Three Months Ended March 31,
20242023
Pumps$101.9 $105.1 
Water83.0 94.1 
Energy52.6 50.7 
Agriculture39.7 38.6 
Valves36.5 33.3 
Intersegment elimination(0.2)(0.7)
Fluid & Metering Technologies313.5 321.1 
Scientific Fluidics & Optics162.7 178.6 
Sealing Solutions60.5 64.7 
Performance Pneumatic Technologies57.5 69.4 
Material Processing Technologies29.4 27.7 
Micropump(1)
 10.6 
Intersegment elimination(0.7)(0.7)
Health & Science Technologies309.4 350.3 
Fire & Safety105.1 106.2 
Dispensing41.5 36.2 
BAND-IT31.4 32.0 
Intersegment elimination(0.4)(0.4)
Fire & Safety/Diversified Products177.6 174.0 
Net sales$800.5 $845.4 

(1) Revenue from Micropump, Inc. (sold on August 3, 2023) has been included in the Condensed Consolidated Statements of Income through the date of disposition.
10


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
Revenue by geographical region for the three months ended March 31, 2024 and 2023 was as follows:

Three Months Ended March 31, 2024
FMTHSTFSDPIDEX
U.S.$172.6 $138.9 $86.1 $397.6 
North America, excluding U.S.16.3 5.6 7.4 29.3 
Europe58.8 104.1 45.0 207.9 
Asia44.7 55.7 30.7 131.1 
Other(1)
21.3 5.8 8.8 35.9 
Intersegment elimination(0.2)(0.7)(0.4)(1.3)
Net sales$313.5 $309.4 $177.6 $800.5 

Three Months Ended March 31, 2023
FMTHSTFSDPIDEX
U.S.$176.8 $149.6 $89.4 $415.8 
North America, excluding U.S.19.4 5.2 8.5 33.1 
Europe59.2 120.9 44.7 224.8 
Asia45.1 66.6 23.4 135.1 
Other(1)
21.3 8.7 8.4 38.4 
Intersegment elimination(0.7)(0.7)(0.4)(1.8)
Net sales$321.1 $350.3 $174.0 $845.4 

(1) Other includes: South America, Middle East, Australia and Africa.

Performance Obligations

The Company’s performance obligations are satisfied either at a point in time or over time as work progresses. Revenue from products and services transferred to customers at a point in time comprised approximately 95% of the Company’s revenue and over time comprised approximately 5% of the Company’s revenue for both the three months ended March 31, 2024 and 2023, respectively.

Contract Assets and Liabilities

The timing of billings and cash collections can result in customer receivables, billings in excess of revenue recognized, advance payments or deposits. Customer receivables include both amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in Receivables - net on the Condensed Consolidated Balance Sheets.

The composition of customer receivables was as follows:
March 31, 2024December 31, 2023
Billed receivables$419.4 $408.1 
Unbilled receivables9.7 10.9 
Total customer receivables$429.1 $419.0 

Billings in excess of revenue recognized, advance payments and deposits represent contract liabilities and are included in deferred revenue which is classified as current or noncurrent based on when the Company expects to recognize the revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent liabilities on the Condensed Consolidated Balance Sheets.
11


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)

The composition of deferred revenue was as follows:
March 31, 2024December 31, 2023
Deferred revenue - current$62.4 $55.9 
Deferred revenue - noncurrent17.9 17.3 
Total deferred revenue$80.3 $73.2 

5.    Earnings Per Common Share

Diluted earnings per common share (“EPS”) attributable to IDEX is computed by dividing Net income attributable to IDEX by the weighted average number of common shares outstanding (basic) plus common stock equivalents outstanding (diluted) for the period. Common stock equivalents consist of restricted stock, performance share units and stock options, which have been included in the calculation of weighted average common shares outstanding using the treasury stock method.

ASC 260, Earnings Per Share (“ASC 260”), concludes that all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends participate in undistributed earnings with common shareholders. If awards are considered participating securities, the Company is required to apply the two-class method of computing basic and diluted earnings per share. The Company has determined that its outstanding shares of restricted stock are participating securities. Accordingly, Diluted EPS attributable to IDEX was computed using the two-class method prescribed by ASC 260.

Basic weighted average common shares outstanding reconciles to diluted weighted average common shares outstanding as follows:
 Three Months Ended March 31,
 20242023
Basic weighted average common shares outstanding75.7 75.6 
Dilutive effect of restricted stock, performance share units and stock options0.2 0.3 
Diluted weighted average common shares outstanding75.9 75.9 

Share-based payment awards of approximately 0.5 million and 0.2 million shares of common stock for the three months ended March 31, 2024 and 2023, respectively, were not included in the computation of Diluted EPS attributable to IDEX because the effect of their inclusion would have been antidilutive.




12


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
6.    Balance Sheet Components
 March 31, 2024December 31, 2023
RECEIVABLES - NET
Customers$429.1 $419.0 
Other16.0 16.3 
Total445.1 435.3 
Less: allowance for credit losses7.2 7.5 
Receivables - net$437.9 $427.8 
INVENTORIES - NET
Raw materials and component parts$283.4 $268.1 
Work in process37.7 44.5 
Finished goods104.9 108.2 
Inventories - net$426.0 $420.8 
ACCRUED EXPENSES
Payroll and related items$81.1 $97.1 
Management incentive compensation6.8 16.4 
Income taxes payable32.7 18.5 
Deferred revenue62.4 55.9 
Lease liability21.7 22.0 
Other69.4 61.6 
Accrued expenses$274.1 $271.5 

7.    Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the three months ended March 31, 2024, by reportable business segment, were as follows:

FMTHSTFSDPIDEX
Goodwill$805.7 $1,834.5 $398.7 $3,038.9 
   Accumulated goodwill impairment losses(20.7)(149.8)(30.1)(200.6)
Balance at January 1, 2024785.0 1,684.7 368.6 2,838.3 
Foreign currency translation(4.5)(27.7)(3.6)(35.8)
Measurement period adjustments 0.5  0.5 
Balance at March 31, 2024$780.5 $1,657.5 $365.0 $2,803.0 

ASC 350, Goodwill and Other Intangible Assets (“ASC 350”), requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. Annually, on October 31, goodwill and other acquired intangible assets with indefinite lives are tested for impairment. Based on the results of the Company’s annual impairment test at October 31, 2023, all reporting units had fair values in excess of their carrying values. During the three months ended March 31, 2024, there were no events or circumstances that would have required an interim impairment test.

13


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset at March 31, 2024 and December 31, 2023:

 At March 31, 2024At December 31, 2023
 Gross
Carrying
Amount
Accumulated
Amortization
NetWeighted
Average
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amortized intangible assets:
Patents$2.8 $(2.1)$0.7 12$2.7 $(2.0)$0.7 
Trade names169.3 (56.5)112.8 15171.9 (54.3)117.6 
Customer relationships841.9 (239.1)602.8 13860.7 (228.7)632.0 
Unpatented technology228.8 (69.8)159.0 12233.5 (66.3)167.2 
Software4.9 (2.0)2.9 55.3 (1.9)3.4 
Total amortized intangible assets1,247.7 (369.5)878.2 131,274.1 (353.2)920.9 
Indefinite-lived intangible assets:
Banjo trade name62.1 — 62.1 62.1 — 62.1 
Akron Brass trade name28.8 — 28.8 28.8 — 28.8 
Total intangible assets$1,338.6 $(369.5)$969.1 $1,365.0 $(353.2)$1,011.8 

The Banjo and Akron Brass trade names are indefinite-lived intangible assets which are tested for impairment on an annual basis in accordance with ASC 350 or more frequently if events or changes in circumstances indicate that the assets might be impaired. Based on the results of the Company’s annual impairment test at October 31, 2023, these indefinite-lived intangible assets had fair values in excess of their carrying values. During the three months ended March 31, 2024, there were no events or circumstances that would have required an interim impairment test on these indefinite-lived intangible assets.

Amortization of intangible assets was $24.6 million and $23.6 million for the three months ended March 31, 2024 and 2023, respectively. Based on the intangible asset balances as of March 31, 2024, expected amortization expense for the remaining nine months of 2024 and for the years 2025 through 2028 is as follows:

Estimated Amortization
Remainder of 2024
$72.5 
202595.3 
202693.7 
202790.4 
202887.3 

14


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
8.   Borrowings

Borrowings at March 31, 2024 and December 31, 2023 consisted of the following: 

March 31, 2024December 31, 2023
3.37% Senior Notes, due June 2025 (the “3.37% Senior Notes”)
100.0 100.0 
5.13% Senior Notes, due June 2028 (the “5.13% Senior Notes”)
100.0 100.0 
3.00% Senior Notes, due May 2030 (the “3.00% Senior Notes”)
500.0 500.0 
2.625% Senior Notes, due June 2031 (the “2.625% Senior Notes”)
500.0 500.0 
$800.0 million Revolving Facility, due November 2027 (the “Revolving Facility”)(1)
78.8 81.0 
$200.0 million Term Facility, due November 2027 (the “Term Facility”)(2)
50.0 50.0 
Other borrowings2.1 2.3 
Total borrowings1,330.9 1,333.3 
Less: current portion0.7 0.6 
Less: deferred debt issuance costs6.3 6.5 
Less: unaccreted debt discount1.0 1.1 
Long-term borrowings$1,322.9 $1,325.1 

(1) At March 31, 2024, there was $78.8 million outstanding under the Revolving Facility and $3.4 million of outstanding letters of credit, resulting in a net available borrowing capacity under the Revolving Facility of approximately $717.8 million. The weighted-average interest rate for borrowings outstanding under the Revolving Facility was 5.02% and 4.22% as of March 31, 2024 and December 31, 2023, respectively.

(2) The weighted-average interest rate for borrowings outstanding under the Term Facility was 6.66% and 6.22% as of March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024, the Company was in compliance with the covenants contained in the credit agreement associated with the Revolving Facility as well as other long-term debt agreements.

9.    Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

15


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
The following table summarizes the basis used to measure the Company’s financial assets (liabilities) at fair value on a recurring basis in the balance sheets at March 31, 2024 and December 31, 2023:

Basis of Fair Value Measurements
 March 31, 2024December 31, 2023
 Level 1Level 1
Trading securities - mutual funds held in nonqualified SERP(1)
$10.3 $10.5 
Available-for-sale securities - equities(2)
4.4 4.4 

(1) The Supplemental Executive Retirement Plan (“SERP”) investment assets are offset by a SERP liability which represents the Company’s obligation to distribute SERP funds to participants. The SERP investment assets and liability are included in Other noncurrent assets and Other noncurrent liabilities, respectively, on the Condensed Consolidated Balance Sheets.

(2) The securities are included in Other current assets on the Condensed Consolidated Balance Sheets and are available for overnight cash settlement, if necessary, to fund current operations.
There were no transfers of assets or liabilities between Level 1 and Level 2 during the three months ended March 31, 2024 or the year ended December 31, 2023.

The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments.

The following table provides the fair value of the outstanding indebtedness described in Note 8, “Borrowings,” which is based on quoted market prices and current market rates for debt with similar credit risk and maturity, as well as the carrying value. These fair value measurements are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions to entities with a credit rating similar to the Company’s rating.

March 31, 2024December 31, 2023
Fair ValueCarrying AmountFair ValueCarrying Amount
Total Borrowings, less unaccreted debt discount$1,239.7 $1,329.9 $1,203.5 $1,332.2 

16


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
10.    Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss are as follows:

Cumulative Translation AdjustmentPension and Other Postretirement AdjustmentsAccumulated Other Comprehensive Loss
Balance, December 31, 2023(1)
$(49.3)$3.5 $(45.8)
Other comprehensive loss before reclassification adjustments(64.3) (64.3)
Gain reclassified from Accumulated other comprehensive loss(2)(3)
 (0.1)(0.1)
Tax benefit   
Net other comprehensive loss(1)
(64.3)(0.1)(64.4)
Balance, March 31, 2024(1)
(113.6)3.4 (110.2)


Cumulative Translation AdjustmentPension and Other Postretirement AdjustmentsAccumulated Other Comprehensive Loss
Balance, December 31, 2022(1)
$(137.1)$10.9 $(126.2)
Other comprehensive income before reclassification adjustments36.6  36.6 
Loss reclassified from Accumulated other comprehensive loss(2)(3)
 0.6 0.6 
Tax benefit (0.2)(0.2)
Net other comprehensive income(1)
36.6 0.4 37.0 
Balance, March 31, 2023(1)
(100.5)11.3 (89.2)

(1) Amounts are presented net of tax.
(2) Included in the computation of net periodic cost. See Note 13, “Retirement Benefits.”
(3) Included in Other (income) expense - net in the Condensed Consolidated Statements of Income.


11.    Share Repurchases

On March 17, 2020, the Company’s Board of Directors approved an increase of $500.0 million in the authorized level of repurchases of common stock. This approval is in addition to the prior repurchase authorization of the Board of Directors of $300.0 million on December 1, 2015. These authorizations have no expiration date. There were no share repurchases during the three months ended March 31, 2024 and 2023. As of March 31, 2024, the amount of share repurchase authorization remaining was $539.7 million.

12.   Share-Based Compensation

The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Board of Directors based on the recommendation from the Compensation Committee.

The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite service period for the entire award. Classification of share-based compensation cost within the Condensed Consolidated Statements of Income is consistent with the classification of cash compensation for the same employees.

17


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
Stock Options

Stock options granted under the Company’s plans are generally non-qualified and are granted with an exercise price equal to the market price of the Company’s stock on the date of grant. The fair value of each option grant was estimated on the date of the grant using the Black Scholes valuation model. Stock options generally vest ratably over four years, with vesting beginning one year from the date of grant, and generally expire 10 years from the date of grant. The service period for certain retiree eligible participants is accelerated. The assumptions used in determining the fair value of the stock options granted in the respective periods were as follows:

 Three Months Ended March 31,
 20242023
Weighted average fair value of grants$63.74$60.80
Dividend yield1.09%1.06%
Volatility26.67%27.19%
Risk-free interest rate4.31%4.12%
Expected life (in years)4.604.50

A summary of the Company’s stock option activity as of March 31, 2024 and changes during the three months ended March 31, 2024 are presented in the following table:
SharesWeighted
Average
Price
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
Stock Options
Outstanding at January 1, 2024983,267 $178.86 6.88$39.3 
Granted192,065 234.91 
Exercised(64,168)154.88 
Forfeited(14,482)185.34 
Outstanding at March 31, 20241,096,682 $190.00 7.28$59.2 
Vested and expected to vest as of March 31, 20241,053,090 $188.59 7.20$58.4 
Exercisable at March 31, 2024605,708 $166.99 5.91$46.7 

As of March 31, 2024, there was $14.5 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.6 years.

18


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
Restricted Stock

Restricted stock awards generally cliff vest after three years for employees and non-employee directors. The service period for certain retiree eligible participants is accelerated. Unvested restricted stock carries dividend and voting rights and the sale of the shares is restricted prior to the date of vesting. Dividends are paid on restricted stock awards and their fair value is equal to the market price of the Company’s stock at the date of the grant. A summary of the Company’s restricted stock activity as of March 31, 2024 and changes during the three months ended March 31, 2024 are presented in the following table:

Restricted StockSharesWeighted-Average
Grant Date Fair
Value
Unvested at January 1, 2024112,891 $193.03 
Granted28,545 228.93 
Vested(15,035)198.33 
Forfeited(3,395)206.55 
Unvested at March 31, 2024123,006 $200.34 

As of March 31, 2024, there was $11.3 million of total unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 1.1 years.

Cash-Settled Restricted Stock

The Company also maintains a cash-settled share-based compensation plan for certain employees. Cash-settled restricted stock awards generally cliff vest after three years. The service period for certain retiree eligible participants is accelerated. Cash-settled restricted stock awards are recorded at fair value on a quarterly basis using the market price of the Company’s stock on the last day of the quarter. At March 31, 2024 and December 31, 2023, the Company had accrued $3.8 million and $4.2 million, respectively, for cash-settled restricted stock in Accrued expenses in the Condensed Consolidated Balance Sheets and had accrued $1.7 million and $2.9 million, respectively, for cash-settled restricted stock in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets. These recurring fair value measurements are classified as Level 1 in the fair value hierarchy. Dividend equivalents are paid on certain cash-settled restricted stock awards. A summary of the Company’s unvested cash-settled restricted stock activity as of March 31, 2024 and changes during the three months ended March 31, 2024 are presented in the following table:

Cash-Settled Restricted StockSharesWeighted-Average
Fair Value
Unvested at January 1, 202456,655 $217.11 
Granted19,760 235.01 
Vested(14,980)235.97 
Forfeited(1,700)244.02 
Unvested at March 31, 202459,735 $244.02 

As of March 31, 2024, there was $7.0 million of total unrecognized compensation cost related to cash-settled restricted shares that is expected to be recognized over a weighted-average period of 1.2 years.

19


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
Performance Share Units

The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model. The assumptions used in determining the fair value of the performance share units granted in the respective periods were as follows:
 Three Months Ended March 31,
20242023
Weighted average fair value of grants$349.59$308.18
Dividend yield%%
Volatility22.23%27.00%
Risk-free interest rate4.45%4.37%
Expected life (in years)2.942.94
A summary of the Company’s performance share unit activity as of March 31, 2024 and changes during the three months ended March 31, 2024 are presented in the following table:
Performance Share UnitsSharesWeighted-Average
Grant Date Fair
Value
Unvested at January 1, 202467,455 $265.15 
Granted27,135 349.59 
Vested(9,606)245.40 
Forfeited(10,629)246.70 
Unvested at March 31, 202474,355 $300.72 

On January 31, 2024, 19,200 performance share units vested. Based on the Company’s relative total shareholder return rank during the three-year period ended January 31, 2024, the Company achieved a 50% payout factor and issued 9,606 common shares in February 2024 for awards that vested in 2024.

As of March 31, 2024, there was $5.7 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.2 years.

Summary of Share-Based Compensation Expense

Pre-tax compensation cost is recognized in both Cost of sales and Selling, general and administrative expenses in the Condensed Consolidated Statements of Income depending on the functional area of the underlying employees. Total compensation cost related to all share-based awards was as follows:

Three Months Ended March 31,
20242023
Stock options expense$5.4 $6.0 
Restricted stock expense 2.0 1.6
Cash-settled restricted stock expense1.9 1.1
Performance share units expense5.1 5.2
Total pre-tax share-based compensation expense14.4 13.9
Income tax benefit(0.9)(0.8)
Total share-based compensation expense, net of income taxes$13.5 $13.1 


20


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)



13.   Retirement Benefits

The Company sponsors several qualified and nonqualified defined benefit and defined contribution pension plans as well as other post-retirement plans for its employees. The following tables provide the components of net periodic cost for its major defined benefit plans and its other postretirement plans.
 Pension Benefits
 Three Months Ended March 31,
 20242023
 U.S.Non-U.S.U.S.Non-U.S.
Service cost$ $0.4 $ $0.3 
Interest cost0.1 0.6 0.1 0.7 
Expected return on plan assets(0.1)(0.4)(0.1)(0.4)
Net amortization0.1  0.1 (0.2)
Net periodic cost$0.1 $0.6 $0.1 $0.4 


 Other Postretirement Benefits
 Three Months Ended March 31,
 20242023
Service cost$0.1 $0.1 
Interest cost0.2 0.2 
Net amortization(0.2)(0.2)
Net periodic cost$0.1 $0.1 

The Company recognizes the service cost component in both Cost of sales and Selling, general and administrative expenses in the Condensed Consolidated Statements of Income depending on the functional area of the underlying employees and the interest cost, expected return on plan assets and net amortization components in Other (income) expense - net in the Condensed Consolidated Statements of Income.

The Company expects to contribute approximately $3.6 million to its defined benefit plans and $1.1 million to its other post-retirement benefit plans in 2024. The Company contributed a total of $1.2 million and $1.3 million to fund these plans during the three months ended March 31, 2024 and 2023, respectively.

14.    Commitments and Contingencies

The Company and certain of its subsidiaries are involved in pending and threatened legal, regulatory and other proceedings arising in the ordinary course of business. These proceedings may pertain to matters such as product liability or contract disputes, and may also involve governmental inquiries, inspections, audits or investigations relating to issues such as tax matters, intellectual property, environmental, health and safety issues, governmental regulations, employment and other matters. Although the results of such legal proceedings cannot be predicted with certainty, the Company believes that the ultimate disposition of these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s business, financial condition, results of operations or cash flows.

21


IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
(unaudited)
15.   Income Taxes

The Company’s provision for income taxes is based upon estimated annual tax rates for the year applied to federal, state and foreign income. The provision for income taxes and the effective tax rates were as follows:

Three Months Ended March 31, 2024
20242023
Provision for income taxes$33.2 $40.0 
Effective tax rate21.5 %22.2 %

The effective tax rate for the three months ended March 31, 2024 reflects the impact of a discrete benefit related to the finalization of tax impacts with taxing authorities of a previously recorded legal entity restructuring.



22

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements and related notes in this quarterly report. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under Item 1A, “Risk Factors” in the Company’s most recent annual report on Form 10-K and under the heading “Cautionary Statement Under the Private Securities Litigation Reform Act” discussed elsewhere in this quarterly report.

This discussion includes certain non-GAAP financial measures that have been defined and reconciled to the most directly comparable financial measure prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) under the headings “Non-GAAP Disclosures” and “Free Cash Flow.” This discussion also includes Operating working capital, which has been defined under the heading “Liquidity and Capital Resources.” The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. The financial results prepared in accordance with U.S. GAAP and the reconciliations from these results should be carefully evaluated.

Overview

IDEX is an applied solutions provider specializing in the manufacturing of fluid and metering technologies, health and science technologies and fire, safety and other diversified products built to customers’ specifications. IDEX’s products are sold in niche markets across a wide range of industries throughout the world. Accordingly, IDEX’s businesses are affected by levels of industrial activity and economic conditions in the U.S. and in other countries where it does business, as well as by the relationship of the U.S. dollar to other currencies. Levels of capacity utilization and capital spending in certain industries and overall industrial activity are important factors that influence the demand for IDEX’s products.

First Quarter Highlights

Select key financial results for the three months ended March 31, 2024 when compared to the same period in the prior year are as follows: