IDEX (IEX) 10-K risk factor changes: FY2016 vs FY2015

In [removed: 2015,] [added: 2016,] 50% of the Company’s sales were derived from domestic operations while 50% were derived from international operations.

[added: Change to Political and Economic] Conditions in [added: the U.S. and] Foreign Countries in Which We Operate Could Adversely Affect Our Business.

In [removed: 2015,] [added: 2016,] approximately 50% of our total sales were to customers outside the U.S. We expect our international operations and export sales to continue to be significant for the foreseeable future.

| • | changes in tariff and trade barriers and import or export licensing requirements; [removed: and,] [added: and] |

In addition, prior acquisitions have [removed: resulted,] [added: resulted in,] and future acquisitions could [removed: result, in] [added: result in,] the incurrence of substantial additional indebtedness and other expenses.

[removed: Our competitors may develop] products that are superior to our products, or may develop methods of more efficiently and effectively providing products and [added: services or may adapt more quickly than us to new technologies or evolving customer requirements.]

We are exposed to fluctuations in foreign currency exchange rates, particularly with respect to the Euro, [added: Swiss Franc,] Canadian Dollar, British Pound, Indian Rupee and Chinese Renminbi.

Our Intangible Assets, Including Goodwill, are a Significant Portion of Our Total Assets and a Write-off of Our Intangible Assets [added: or Goodwill] Would Adversely Impact Our Operating Results and Significantly Reduce Our Net Worth.

At December 31, [removed: 2015,] [added: 2016,] goodwill and intangible assets totaled [removed: $1,396.5] [added: $1,632.6] million and [removed: $287.8] [added: $435.5] million, respectively.

These assets result from our acquisitions, representing the excess of [removed: cost] [added: the purchase price] over the fair value of the tangible net assets we have acquired.

If future operating performance at one or more of our reporting units were to fall significantly below [removed: forecast] [added: forecasted] levels, we could be required to reflect, under current applicable accounting rules, a non-cash charge to operating income for an impairment.

Volatility in commodity prices, including oil, can negatively affect the level of these activities and can result in postponement of capital [removed: spending decisions or the delay or cancellation of existing orders.]

| • | withdrawal from or renegotiation of international trade agreements and other restrictions on the trade between the United States and other countries; |

| | |

| --- | --- |

Our competitors may develop

Fluctuations in Interest Rates Could Adversely Affect Our Results of Operations and Financial Position.

Our profitability may be adversely affected during any periods of unexpected or rapid increases in interest rates.

We maintain a revolving credit facility, which bears interest at either an alternate base rate or an adjusted LIBOR rate plus, in each case, an applicable margin based on the Company's senior, unsecured, long-term debt rating.

A significant increase in LIBOR would significantly increase our cost of borrowings.

For additional detail related to this risk, see Part II, Item 7A, "Quantitative and Qualitative Disclosure About Market Risk."

spending decisions or the delay or cancellation of existing orders.

The Company’s sales were down 6% in 2015.

Approximately 8% of our 2015 sales were derived from new products developed over the past three years.

services or may adapt more quickly than us to new technologies or evolving customer requirements.

[removed: 2015] [added: 2016] Overview and Outlook

IDEX is an applied solutions company specializing in fluid and metering technologies, health and science technologies, and fire, safety and other diversified products built to [removed: customer] [added: customers’] specifications.

Accordingly, [removed: our] [added: IDEX’s] businesses are affected by levels of industrial activity and economic conditions in the U.S. and in other countries where [removed: we do] [added: it does] business and by the relationship of the U.S. dollar to other currencies.

Levels of capacity utilization and capital spending in [removed: the] [added: certain] industries [removed: that use our products] and overall industrial activity are important factors that influence the demand for [removed: our] [added: IDEX’s] products.

Within our three reportable segments, the Company maintains [removed: fifteen] [added: thirteen] platforms, where we focus on organic growth and strategic acquisitions.

Each of our [removed: fifteen] [added: thirteen] platforms is also a reporting unit, where we annually test for goodwill impairment.

The Fluid & Metering Technologies segment contains the Energy (comprised of Corken, Faure Herman, Liquid Controls, [removed: SAMPI] [added: SAMPI,] and Toptech), Valves (comprised of Alfa [removed: Valvole),] [added: Valvole, Richter, and Aegis),] Water (comprised of Pulsafeeder, Knight, ADS, [removed: IETG,] [added: Trebor,] and iPEK), [removed: Industrial] [added: Pumps] (comprised of [removed: Richter, Viking, Aegis, Warren Rupp,] [added: Viking] and [removed: Trebor),] [added: Warren Rupp),] and Agriculture (comprised of Banjo) platforms.

The Health & Science Technologies segment contains the Scientific Fluidics [added: & Optics] (comprised of Eastern Plastics, Rheodyne, Sapphire Engineering, Upchurch Scientific, ERC, [removed: and] CiDRA Precision [removed: Services), IDEX Optics & Photonics (comprised of] [added: Services,] CVI Melles Griot, Semrock, and AT Films), Sealing Solutions (comprised of [removed: PPE, FTL,] [added: Precision Polymer Engineering, FTL Seals Technology, Novotema,] and [removed: Novotema),] [added: SFC Koenig),] Gast, Micropump, and Material Processing Technologies (comprised of Quadro, Fitzpatrick, Microfluidics, and Matcon) platforms.

The Fire & Safety/Diversified Products segment is comprised of the Fire [removed: Suppression] [added: & Safety] (comprised of Class 1, Hale, [removed: and Godiva), Rescue (comprised of] [added: Akron Brass, AWG Fittings, Godiva,] Dinglee, Hurst Jaws of Life, Lukas, and Vetter), Band-It, and Dispensing platforms.

The Fire & Safety/Diversified Products segment produces firefighting pumps and controls, [added: valves, monitors, nozzles,] rescue tools, lifting bags and other components and systems for the fire and rescue industry, [removed: and] engineered stainless steel banding and clamping devices used in a variety of industrial and commercial applications, [added: and] precision equipment for dispensing, metering and mixing colorants and paints used in a variety of retail and commercial businesses around the world.

Our [removed: 2015] [added: 2016] financial results [removed: are] [added: were] as follows:

| • | Sales of [removed: $2.0] [added: $2.1] billion [removed: decreased (6)%;] [added: increased 5%,] reflecting a [removed: 4%] [added: 1%] decrease in organic sales (excluding [removed: acquisitions] [added: acquisitions, divestitures] and foreign currency translation), a [removed: 4%] [added: 1%] decrease due to foreign [removed: currency,] [added: currency translation,] and a [removed: 2%] [added: 7%] increase due to [removed: acquisitions.] [added: acquisitions/divestitures.] |

| • | Operating income of [removed: $431.7] [added: $405.8] million [removed: remained flat] and operating margin of [removed: 21.4% was up 130] [added: 19.2% were down 6% and 220] basis [removed: points] [added: points, respectively,] from the prior year. |

| • | [removed: Net] [added: Adjusted net] income increased [removed: 1%] [added: 4%] to [removed: $282.8] [added: $288.4] million. |

Our [removed: 2015] [added: 2016] financial results, adjusted for [added: $3.7 million of restructuring costs, a $3.6 million pension settlement charge and a $22.3 million loss on sale of businesses, compared to our 2015 financial results adjusted for] $11.2 million of restructuring costs and an $18.1 million gain on [removed: the] sale of a [removed: business,] [added: business] are as follows (these non-GAAP measures have been reconciled to U.S. GAAP measures in Item 6, “Selected Financial Data”):

| • | Adjusted operating income of [removed: $424.9] [added: $435.3] million [removed: decreased 4%] and adjusted operating margin of [removed: 21.0% was] [added: 20.6% were] up [removed: 30] [added: 2% and down 40] basis [removed: points] [added: points, respectively,] from the prior [removed: year adjusted operating income of $444.9 million and adjusted operating margin of 20.7%.] [added: year.] |

| • | Adjusted EPS of [removed: $3.55] [added: $3.75] was [removed: 1% lower] [added: 6% higher] than [removed: the] prior year adjusted EPS of [removed: $3.57.] [added: $3.55.] |

The following is a discussion and analysis of our results of operations for each of the three years in the period ended December 31, [removed: 2015.][added: 2016.]

In the following discussion, and throughout this report, references to organic sales, a non-GAAP measure, refers to sales from continuing operations calculated according to generally accepted accounting principles in the United States but excludes (1) the impact of foreign currency translation and (2) sales from acquired [added: or divested] businesses during the first twelve months of [removed: ownership.][added: ownership or divestiture.]

The Company excludes the effect of acquisitions [added: and divestitures] because the nature, size, and number of acquisitions [added: and divestitures] can vary dramatically from period to period and between the Company and its peers and can also obscure underlying business trends and make comparisons of long-term performance difficult.

Sales in 2015 were $2.0 billion, a [removed: (6)%] [added: 6%] decrease from [removed: the comparable period last year.][added: 2014.]

This decrease reflected a 2% decline in organic [removed: growth,] [added: sales,] a 2% increase from acquisitions (Alfa Valvole — June 2015 and Aegis — April 2014) and 4% of unfavorable foreign currency translation.

Sales within our [removed: Industrial] [added: Pumps] platform [added: (formerly Industrial)] similarly decreased compared to 2014 due to the fall in oil & gas prices, but also due to the weakening of the North American industrial distribution market.

| Operating income [added: (loss)] | 157,948 | | | | 152,999 | | | | 3 | % | |

Sales within our Scientific Fluidics [added: & Optics] platform increased as demand from the core biotech, in-vitro diagnostic and analytical instrumentation markets grew and remained consistently strong through the [removed: year.][added: year, partially offset by from slow demand in the industrial and laser optical end markets.]

Sales in our Gast platform decreased compared to 2014 due to softness in North American industrial [added: distribution markets.]

This decrease reflected a 10% decline in organic [removed: growth] [added: sales] and 6% unfavorable foreign currency translation.

Sales within our Fire [removed: Suppression] [added: & Safety] platform decreased due to prior year trailer sales for North American power production facilities, [removed: and] [added: a] lack of project orders in China and North [removed: America.][added: America, and continued decision delays on municipal projects in Europe and Asia.]

Performance in [removed: 2014] [added: 2016] Compared with [removed: 2013][added: 2015]

| Operating margin | [removed: 20.1] [added: 20.6] | | % | | [removed: 19.5] [added: 21.4] | | % | | [removed: 60] [added: (80] | [added: )] | bps |

Sales in [removed: 2014] [added: 2016] were $2.1 billion, a [removed: 6%] [added: 5%] increase from [removed: the comparable period the previous] [added: last] year.

[removed: Organic sales] [added: Sales] to customers outside the U.S. [removed: represented] [added: were] approximately [removed: 50%] [added: 51%] of total [added: segment] sales in [removed: 2014] [added: 2016] compared with [removed: 51%] [added: 52%] in [removed: 2013.][added: 2015.]

In [removed: 2014,] [added: 2016,] Fluid & Metering Technologies contributed [removed: 42%] [added: 40%] of sales and [removed: 43%] [added: 44%] of operating income; Health & Science Technologies contributed 35% of sales and 31% of operating income; and Fire & Safety/Diversified Products contributed [removed: 23%] [added: 25%] of sales and [removed: 26%] [added: 25%] of operating income.

As a percentage of sales, SG&A expenses were [removed: 23.5%] [added: 23.6%] for [removed: 2014] [added: 2016] and [removed: 23.6%] [added: 23.7%] for [removed: 2013.][added: 2015.]

[removed: The 2014] [added: In 2015, the Company recorded $11.2 million of] restructuring expenses [removed: were] mainly attributable to employee severance [removed: related to head count] [added: from headcount] reductions across all three segments and corporate.

The provision for income taxes [removed: increased] [added: decreased] to [removed: $113.1] [added: $97.4] million in [removed: 2014] [added: 2016] compared to [removed: $97.9] [added: $109.5] million in [removed: 2013.][added: 2015.]

Net income for the year of [removed: $279.4] [added: $271.1] million [removed: increased] [added: decreased] from the [removed: $255.2] [added: $282.8] million [removed: earned] in [removed: 2013.][added: 2015.]

In [removed: 2014, organic] [added: 2016,] sales [removed: increased approximately 4%] [added: decreased 1%] domestically and [removed: 1%] [added: increased 3%] internationally.

[removed: Organic sales] [added: Sales] to customers outside the U.S. were approximately [removed: 45%] [added: 44%] of total segment sales in [removed: 2014, compared with 46% in 2013.][added: both 2016 and 2015.]

Sales within our [removed: Industrial] [added: Pumps] platform [removed: increased] [added: (formerly Industrial) decreased] compared to [removed: 2013 on continued strength of] [added: 2015 due to weakness in] the North American industrial distribution [removed: and chemical markets.][added: market.]

| • | Net income decreased 4% to $271.1 million. |

| • | Diluted EPS of $3.53 decreased $0.09 or 2% compared to 2015. |

Overall, we remain cautious due to the uncertainty within the global economy and the global political environment and project 1 to 2 percent organic growth in 2017.

We expect to deliver full year 2017 EPS of $3.87 to $3.95.

| (In thousands) | 2016 | | | | 2015 | | | | Change | | |

| Net sales | $ | 2,113,043 | | | $ | 2,020,668 | | | 5 | % | |

| Operating income | 405,801 | | | | 431,738 | | | | (6 | )% | |

| Operating margin | 19.2 | | % | | 21.4 | | % | | (220 | ) | bps |

This increase reflects a 1% decrease in organic sales, a 1% decrease from foreign currency translation and a 7% increase from acquisitions/divestitures (Acquisitions: SFC Koenig - September 2016; AWG Fittings - July 2016; Akron Brass - March 2016; CiDRA Precision Services - July 2015; Alfa Valvole - June 2015 and Novotema - June 2015.

Divestitures: CVI Korea - December 2016; IETG - October 2016; CVI Japan - September 2016; Hydra-Stop - July 2016 and Ismatec - July 2015).

Sales to customers outside the U.S. represented approximately 50% of total sales in both 2016 and 2015.

Gross profit of $930.8 million in 2016 increased $26.5 million, or 3%, from 2015, while gross margin decreased 80 basis points to 44.0% in 2016 from 44.8% in 2015.

The increase in gross profit is primarily a result of increased sales volume as a result of acquisitions, while the margin decrease is mainly attributable to $14.7 million of fair value inventory step up charges from 2016 acquisitions compared to $3.4 million from 2015 acquisitions.

SG&A expenses increased to $499.0 million in 2016 from $479.4 million in 2015.

The $19.6 million increase is mainly attributable to $41.4 million of incremental costs from new acquisitions and $3.6 million of pension settlement charges in 2016, partially offset by current year divestitures and cost savings from prior year restructuring actions.

During 2016, the Company recorded a $22.3 million pre-tax loss on the sale of businesses related to the four divestitures during the year (Hydra-Stop - July 2016; CVI Japan - September 2016; IETG - October 2016; and CVI Korea - December 2016), compared to the $18.1 million pre-tax gain on the sale of a business in 2015 (Ismatec - July 2015).

During 2016, the Company recorded pre-tax restructuring expenses totaling $3.7 million as part of initiatives that support the implementation of key strategic efforts designed to facilitate long-term, sustainable growth through cost reduction actions primarily consisting of employee reductions and facility rationalization.

Operating income of $405.8 million in 2016 decreased from $431.7 million in 2015, primarily resulted from the impact of the four divestitures in 2016 and the associated loss compared to the one divestiture in 2015 and the associated gain as well as the $3.6 million pension settlement charge in 2016 and the incremental fair value inventory step-up charges related to the 2016 acquisitions, partially offset by the reversal of $4.7 million of contingent consideration related to a 2015 acquisition and lower restructuring costs recorded in 2016 compared to 2015.

Operating margin of 19.2% in 2016 was down 220 basis points from 21.4% in 2015 primarily due to the loss on the sale of businesses in 2016 compared to a gain on the sale of a business in 2015, and the 2016 pension settlement, partially offset by productivity improvements and lower restructuring costs year over year.

Other (income) expense increased $6.1 million from income of $2.2 million in 2015 to income of $8.3 million in 2016 mainly due to $4.7 million of foreign currency transaction gains on intercompany loans that were established in conjunction with the SFC Koenig acquisition.

Interest expense increased to $45.6 million in 2016 from $41.6 million in 2015.

The increase was primarily due to the $200 million series of Senior Notes issued in 2016 and higher borrowings outstanding on the Revolving Facility.

The effective tax rate decreased to 26.4% in 2016 compared to 27.9% in 2015, due to tax benefits on the divestitures of CVI Korea and CVI Japan, certain return-to-provision adjustments and the early adoption of ASU 2016-09 and the related tax effects of share based payments now recognized as a reduction to income tax expense.

These adjustments were offset by the incurrence of additional foreign withholding taxes, the prior year revaluation of the Italian deferred tax liability related to the reduction in the Italian statutory tax rate and tax expense on the divestiture of the Hydra-Stop product line and the prior year divestiture of the Ismatec product line as well as the mix of global pre-tax income among jurisdictions.

Diluted earnings per share in 2016 of $3.53 decreased $0.09 from $3.62 in 2015.

| (In thousands) | 2016 | | | | 2015 | | | | Change | | |

| Net sales | $ | 849,101 | | | $ | 860,792 | | | (1 | )% | |

| Operating income | 214,242 | | | | 204,506 | | | | 5 | % | |

| Operating margin | 25.2 | | % | | 23.8 | | % | | 140 | | bps |

Sales of $849.1 million decreased $11.7 million, or 1%, in 2016 compared with 2015.

In 2016, sales were flat domestically and decreased approximately 3% internationally.

Sales within our Energy platform increased compared to 2015 primarily due to strength within the aviation market, partially offset by continued weakness in the propane and oil and gas markets as well as challenges in the mobile end market.

Sales within the Water platform decreased due to the divestitures of Hydra-Stop and IETG and slowing demand in the chemical end market, partially offset by increased municipal spending.

Sales within our Agriculture platform increased year over year due to increased demand in the second half of 2016 from both OEMs and distributors in anticipation of the 2017 planting season.

Sales within the Valves platform, which was created in the third quarter of 2015, increased as a result of the full year impact of the Alfa Valvole acquisition, offset by a challenging oil & gas market and overall weakness in the European market.

Operating income and operating margin of $214.2 million and 25.2%, respectively, were higher than the $204.5 million and 23.8%, respectively, recorded in 2015, primarily due to the full year impact of the Alfa Valvole acquisition as well as productivity initiatives, partially offset by lower volume.

| (In thousands) | 2016 | | | | 2015 | | | | Change | | |

| Net sales | $ | 744,809 | | | $ | 738,996 | | | 1 | % | |

| Operating income | 153,722 | | | | 157,948 | | | | (3 | )% | |

Sales of $744.8 million increased $5.8 million, or 1%, in 2016 compared with 2015.

| • | Diluted EPS of $3.62 increased $0.17 or 5% compared to 2014. |

| • | Adjusted net income of $277.2 million is 4% lower than the prior year of $288.8 million. |

Overall, we believe the current contraction of global economies will continue to pressure our end markets, creating an unstable growth environment for 2016.

Based on the Company’s current outlook, we anticipate organic growth to be flat in 2016 with full year EPS of $3.60 to $3.70.

Diluted earnings per share in 2015 of $3.62 increased $0.17 from $3.45 in 2014 as a result of the gain on the sale of the Ismatec product line and lower share count resulting from share repurchases, partially offset by lower sales volume.

Sales within the IDEX Optics and Photonics platform decreased compared to 2014, primarily from slow demand in the industrial and laser optical end markets.

distribution markets.

Sales within our Rescue platform decreased, due to continued decision delays on municipal projects in Europe and Asia.

| (In thousands) | 2014 | | | | 2013 | | | | Change | | |

| Net sales | $ | 2,147,767 | | | $ | 2,024,130 | | | 6 | % | |

| Operating income | 431,224 | | | | 395,513 | | | | 9 | % | |

This increase reflects a 5% increase in organic sales and 1% from acquisitions (Aegis — April 2014 and FTL — March 2013).

Gross profit of $949.3 million in 2014 increased $76.0 million, or 9%, from 2013, while gross margins were 44.2% in 2014 and 43.1% in 2013.

The increases are mainly attributable to increased sales volume, favorable net material costs as well as benefits from productivity initiatives.

SG&A expenses increased to $504.4 million in 2014 from $477.9 million in 2013.

The $26.6 million increase reflects approximately $4.0 million of incremental costs from new acquisitions and $22.6 million of volume-related expenses.

During 2014, the Company recorded pre-tax restructuring expenses totaling $13.7 million.

No restructuring expenses were recorded in 2013.

Operating income of $431.2 million in 2014 increased from the $395.5 million recorded in 2013, primarily reflecting an increase in volume, improved productivity partially offset by the $13.7 million of restructuring-related charges recorded in

2014.

Operating margin of 20.1% in 2014 was up from 19.5% in 2013 primarily due to volume leverage and productivity partially offset by the restructuring-related charges in 2014.

Other (income) expense increased $3.3 million from other expense of $0.2 million in 2013 to $3.1 million of income in 2014 mainly due to a favorable impact from foreign currency transactions and an increase in interest income.

Interest expense decreased slightly to $41.9 million in 2014 from $42.2 million in 2013.

The decrease was principally due to lower interest rates.

The effective tax rate increased to 28.8% in 2014 compared to 27.7% in 2013, due to a mix of global pre-tax income among jurisdictions and the 2012 U.S. R&D credit in 2013, which was retroactively reinstated to January 1, 2012 as a result of the the enactment of the American Taxpayer Relief Act of 2012 on January 2, 2013.

Diluted earnings per share in 2014 of $3.45 increased $0.36 from $3.09 in 2013 due to higher net income and lower share count resulting from share repurchases.

| (In thousands) | 2014 | | | | 2013 | | | | Change | | |

| Net sales | $ | 899,588 | | | $ | 871,814 | | | 3 | % | |

| Operating income | 216,886 | | | | 211,256 | | | | 3 | % | |

| Operating margin | 24.1 | | % | | 24.2 | | % | | (10 | ) | bps |

Sales of $899.6 million increased $27.8 million, or 3%, in 2014 compared with 2013.

This increase reflected 2% organic growth and 1% acquisition.

The increase in organic sales was attributable to growth across all our platforms and groups within the segment.

Sales within our Energy platform increased modestly compared to 2013, due to the strength of the LPG and refined fuel markets.

Sales have grown in the North American and Asian markets, while Europe and the Middle East sales have declined, due to the fall in oil prices and large project delays.

This increase was partially offset by a decline in Industrial chemical sales in Europe due to a lack of project activity.

Sales within our Agriculture platform increased slightly driven by strong aftermarket demand in North America, which was offset by weak OEM demand due to falling farm income.

The sales increase in our Water platform was driven by share gains from new products and increased global project activity.

Operating income of $216.9 million was higher than the $211.3 million recorded in 2013, while operating margin of 24.1% was lower than the 24.2% recorded in 2013, primarily due to $6.4 million of restructuring charges recorded in 2014, partially offset by volume leverage and productivity initiatives.

| (In thousands) | 2014 | | | | 2013 | | | | Change | | |

A treasury risk management policy, adopted by the Board of Directors, describes the procedures and controls over derivative financial and commodity instruments, including foreign currency forward [added: contracts and interest rate swaps.]

The Company’s foreign currency exchange rate risk is limited principally to the Euro, [added: Swiss Franc,] British Pound, Canadian Dollar, Indian Rupee and Chinese Renminbi.

The foreign currency transaction (gains) losses for the [removed: period] [added: years] ending December 31, [removed: 2015, 2014] [added: 2016, 2015] and [removed: 2013] [added: 2014] were [removed: $(0.1)] [added: $(6.2)] million, [removed: $0.9] [added: $(0.1)] million, and [removed: $2.2] [added: $0.9] million, respectively, and are reported within Other (income) expense-net on the Consolidated Statements of Operations.

The Company’s interest rate exposure is primarily related to its [removed: $847.4] [added: $1,020.9] million of total debt outstanding at December 31, [removed: 2015.][added: 2016.]

Approximately [removed: 23%] [added: 17%] of the debt is priced at interest rates that float with the market.

A 50 basis point movement in the interest rate on the floating rate debt would result in an approximate [removed: $1.0] [added: $0.8] million annualized increase or decrease in interest expense and cash flows.

contracts and interest rate swaps.

The Company and [removed: four] [added: six] of its subsidiaries are presently named as defendants in a number of lawsuits claiming various asbestos-related personal injuries and seeking money damages, allegedly as a result of exposure to products manufactured with components that contained asbestos.

No provision has been made in the financial statements of the Company for these asbestos-related claims, other than for insurance deductibles in the ordinary course, and the Company does not currently believe these claims will have a material adverse effect on [removed: it.][added: the Company’s business, financial position, results of operations or cash flows.]

The Company is also party to various other legal proceedings arising in the ordinary course of business, none of which is expected to have a material adverse effect on [removed: it.][added: its financial condition, results of operations or cash flows.]

| | For the Fiscal Year Ended December 31, [removed: 2015] [added: 2016] |

The aggregate market value, as of the last business day of the registrant’s most recently completed second fiscal quarter, of the common stock (based on the June 30, [removed: 2015] [added: 2016] closing price of [removed: $78.58)] [added: $82.10)] held by non-affiliates of IDEX Corporation was [removed: $6,085,231,271.][added: $6,235,379,567.]

The number of shares outstanding of IDEX Corporation’s common stock, par value $.01 per share, as of February [removed: 16, 2016] [added: 14, 2017] was [removed: 75,929,397.][added: 76,248,604.]

Portions of the proxy statement with respect to the IDEX Corporation [removed: 2016] [added: 2017] annual meeting of stockholders (the [removed: “2016] [added: “2017] Proxy Statement”) are incorporated by reference into Part III of this Form 10-K.

| Item 1. | [removed: [Business](#sEC959C660A59E8B98D86131E1421400E)] [added: [Business](#s04698D6B580D502883FDAD63BC2B378D)] | [removed: [1](#sEC959C660A59E8B98D86131E1421400E)] [added: [1](#s04698D6B580D502883FDAD63BC2B378D)] |

| Item 1A. | [Risk [removed: Factors](#sFD6E2A2CE6C516324CAB131E1462185D)] [added: Factors](#s6E1D69ED6F0A5E0E95E02DC49B2F87A6)] | [removed: [8](#sFD6E2A2CE6C516324CAB131E1462185D)] [added: [10](#s6E1D69ED6F0A5E0E95E02DC49B2F87A6)] |

| Item 1B. | [Unresolved Staff [removed: Comments](#sB0BE9A7D239EE23EC943131E1475FD83)] [added: Comments](#sC6DE22E379C95B02BD6862ADCB4771D5)] | [removed: [10](#sB0BE9A7D239EE23EC943131E1475FD83)] [added: [12](#sC6DE22E379C95B02BD6862ADCB4771D5)] |

| Item 2. | [removed: [Properties](#s3FA0FCE5C7795897EB35131E14A7D7E1)] [added: [Properties](#s619A342A7F2E590D9CCF6315A7CAA048)] | [removed: [10](#s3FA0FCE5C7795897EB35131E14A7D7E1)] [added: [12](#s619A342A7F2E590D9CCF6315A7CAA048)] |

| Item 3. | [Legal [removed: Proceedings](#sFBB122EE5925C6E66510131E14CB3399)] [added: Proceedings](#sD27775A521725F11BBFB80FCD9F5B0A7)] | [removed: [11](#sFBB122EE5925C6E66510131E14CB3399)] [added: [13](#sF8B71B864600550A869CD8000172AEC5)] |

| Item 4. | [Mine Safety [removed: Disclosures](#s25CCB5068BF74838E23F131E14FDAFAC)] [added: Disclosures](#sF8B71B864600550A869CD8000172AEC5)] | [removed: [11](#s25CCB5068BF74838E23F131E14FDAFAC)] [added: [13](#sF8B71B864600550A869CD8000172AEC5)] |

| Item 5. | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#sB903F96F9733D7C46198131E11C91DD8)] [added: Securities](#s76292DE9E560529893662A4742E355CE)] | [removed: [12](#sB903F96F9733D7C46198131E11C91DD8)] [added: [14](#s76292DE9E560529893662A4742E355CE)] |

| Item 6. | [Selected Financial [removed: Data](#s034B0292411EB61F52F9131E0C3AC718)] [added: Data](#sA7BA7C22325A59558DB4A3EAC91D9097)] | [removed: [14](#s034B0292411EB61F52F9131E0C3AC718)] [added: [16](#sA7BA7C22325A59558DB4A3EAC91D9097)] |

| Item 7. | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#s9CF5ADFE1AB31ED03E6D131E16BF9BE7)] [added: Operations](#sB8DB8324C99952489B4570E1EE74C4E7)] | [removed: [15](#s9CF5ADFE1AB31ED03E6D131E16BF9BE7)] [added: [17](#sB8DB8324C99952489B4570E1EE74C4E7)] |

| Item 7A. | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#s836CD0A0B99C7CCC0B89131E184F56AB)] [added: Risk](#sF7ED784966765131BE4202FF7736E15C)] | [removed: [23](#s836CD0A0B99C7CCC0B89131E184F56AB)] [added: [27](#sF7ED784966765131BE4202FF7736E15C)] |

| Item 8. | [Financial Statements and Supplementary [removed: Data](#sB396F620816C2D36E42F131E186545A9)] [added: Data](#s90BF906358A6575FB8B4E9EB2B2B5D14)] | [removed: [25](#sB396F620816C2D36E42F131E186545A9)] [added: [28](#s90BF906358A6575FB8B4E9EB2B2B5D14)] |

| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#s010745359B9DC164B0D4131E1EDF3101)] [added: Disclosure](#sB6F8C57F770656EC8F6BF09D19CD461B)] | [removed: [67](#s010745359B9DC164B0D4131E1EDF3101)] [added: [72](#sB6F8C57F770656EC8F6BF09D19CD461B)] |

| Item 9A. | [Controls and [removed: Procedures](#s63501F451FEA877C89B6131E1F246D73)] [added: Procedures](#sEDAB7482220C5A4CA93F99995B600A88)] | [removed: [67](#s63501F451FEA877C89B6131E1F246D73)] [added: [72](#sEDAB7482220C5A4CA93F99995B600A88)] |

| Item 9B. | [Other [removed: Information](#s88B814ED335AA9FC5C54131E1F356B50)] [added: Information](#s54B2FD988CD85BC7AE85756EB2955FDA)] | [removed: [67](#s88B814ED335AA9FC5C54131E1F356B50)] [added: [72](#s54B2FD988CD85BC7AE85756EB2955FDA)] |

| Item 10. | [Directors, Executive Officers and Corporate [removed: Governance](#s714EE3A6898201E6C8DF131E1F88DB1B)] [added: Governance](#sCC3AC4CF645F5F62AAB49674DFC87D94)] | [removed: [68](#s714EE3A6898201E6C8DF131E1F88DB1B)] [added: [73](#sCC3AC4CF645F5F62AAB49674DFC87D94)] |

| Item 11. | [Executive [removed: Compensation](#s51AEC078EAB50AF907CD131E1FBA6CFE)] [added: Compensation](#s33D7538270CC518B8624AD4E172800F5)] | [removed: [68](#s51AEC078EAB50AF907CD131E1FBA6CFE)] [added: [73](#s33D7538270CC518B8624AD4E172800F5)] |

| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#s52074E1893C8ADC754BB131E1FD9EC90)] [added: Matters](#sB0E2A3A85EF35862A6EDE1A4A02FAFDF)] | [removed: [68](#s52074E1893C8ADC754BB131E1FD9EC90)] [added: [73](#sB0E2A3A85EF35862A6EDE1A4A02FAFDF)] |

| Item 13. | [Certain Relationships and Related Transactions, and Director [removed: Independence](#sDD7334AA1A781DB97745131E200B1B57)] [added: Independence](#s71B34F1F5CBD551BB6E5C7FCBDF5CAE3)] | [removed: [68](#sDD7334AA1A781DB97745131E200B1B57)] [added: [73](#s71B34F1F5CBD551BB6E5C7FCBDF5CAE3)] |

| Item 14. | [Principal Accountant Fees and [removed: Services](#sA120E39B037DD371E4A7131E202E7247)] [added: Services](#sB639D78C96145B7B989510DB14FF1D21)] | [removed: [68](#sA120E39B037DD371E4A7131E202E7247)] [added: [73](#sB639D78C96145B7B989510DB14FF1D21)] |

| Item 15. | [Exhibits and Financial Statement [removed: Schedules](#s23D4924CBE2D80249908131E2083ADC6)] [added: Schedules](#s6FB22A187DAC538BA37D3A76DEF5E0B3)] | [removed: [69](#s23D4924CBE2D80249908131E2083ADC6)] [added: [74](#s6FB22A187DAC538BA37D3A76DEF5E0B3)] |

| [Exhibit [removed: Index](#s50594C30A2B160DE9486131E20DCB692)] [added: Index](#sE99F3D655EB05A7BBCCD4DA5FEE35361)] | | [removed: [71](#s50594C30A2B160DE9486131E20DCB692)] [added: [77](#sE99F3D655EB05A7BBCCD4DA5FEE35361)] |

The risks and uncertainties include, but are not limited to, the following: economic and political consequences resulting from terrorist attacks and wars; levels of industrial activity and economic conditions in the U.S. and other countries around the world; pricing [removed: pressures and] [added: pressures,] other competitive [removed: factors,] [added: factors] and levels of capital spending in certain [removed: industries -] [added: industries,] all of which could have a material impact on order rates and [removed: IDEX’s] [added: IDEX Corporation’s] results, particularly in light of the low levels of order backlogs it typically maintains; its ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; 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; interest rates; capacity utilization and the effect this has on costs; labor markets; market conditions and material costs; and developments with respect to contingencies, such as litigation and environmental matters.

The Company is an applied solutions business that sells an extensive array of pumps, [added: valves,] flow meters and other fluidics systems and components and engineered products to customers in a variety of markets around the world.

Within our three reportable segments, the Company maintains [removed: fifteen] [added: thirteen] platforms, where we focus on organic growth and strategic acquisitions.

Each of our [removed: fifteen] [added: thirteen] platforms is also a reporting unit, where we annually test for goodwill impairment.

The Fluid & Metering Technologies segment contains the Energy (comprised of Corken, Faure Herman, Liquid Controls, [removed: SAMPI] [added: SAMPI,] and Toptech), Valves (comprised of Alfa [removed: Valvole),] [added: Valvole, Richter, and Aegis),] Water (comprised of Pulsafeeder, Knight, ADS, [removed: IETG,] [added: Trebor,] and iPEK), [removed: Industrial] [added: Pumps] (comprised of [removed: Richter, Viking, Aegis, Warren Rupp,] [added: Viking] and [removed: Trebor),] [added: Warren Rupp),] and Agriculture (comprised of Banjo) platforms.

The Health & Science Technologies segment contains the Scientific Fluidics [added: & Optics] (comprised of Eastern Plastics, Rheodyne, Sapphire Engineering, Upchurch Scientific, ERC, [removed: and] CiDRA Precision [removed: Services), IDEX Optics & Photonics (comprised of] [added: Services,] CVI Melles Griot, Semrock, and AT Films), Sealing Solutions (comprised of Precision Polymer Engineering, FTL Seals Technology, [added: Novotema,] and [removed: Novotema),] [added: SFC Koenig),] Gast, Micropump, and Material Processing Technologies (comprised of Quadro, Fitzpatrick, Microfluidics, and Matcon) platforms.

The Fire & Safety/Diversified Products segment is comprised of the Fire [removed: Suppression] [added: & Safety] (comprised of Class 1, [removed: Hale and Godiva), Rescue (comprised of] [added: Hale, Godiva, Akron Brass, AWG Fittings,] Dinglee, Hurst Jaws of Life, Lukas, and Vetter), Band-It, and Dispensing platforms.

The Fluid & Metering Technologies segment designs, produces and distributes positive displacement pumps, [added: valves,] flow meters, injectors, and other fluid-handling pump modules and systems and provides flow monitoring and other services for the food, chemical, general industrial, water & wastewater, agriculture and energy industries.

Fluid & Metering Technologies accounted for [removed: 43%, 42% and] [added: 40%,] 43% [added: and 42%] of IDEX’s sales in [removed: 2015, 2014] [added: 2016, 2015] and [removed: 2013,] [added: 2014,] respectively, with approximately 44% of its [removed: 2015] [added: 2016] sales to customers outside the U.S. The segment accounted for [removed: 43%,] [added: 44%,] 43% and [removed: 47%] [added: 43%] of IDEX’s operating income in [removed: 2015, 2014] [added: 2016, 2015] and [removed: 2013,] [added: 2014,] respectively.

Energy consists of the Company’s Corken, Faure Herman, Liquid Controls, [removed: SAMPI] [added: SAMPI,] and Toptech businesses.

[removed: Headquartered] [added: Energy maintains facilities] in Lake Bluff, Illinois (Liquid Controls [removed: products), Energy has additional facilities in] [added: products);] Longwood, Florida and Zwijndrecht, Belgium (Toptech products); Oklahoma City, Oklahoma (Corken products); La Ferté Bernard, France (Faure Herman products); and Altopascio, Italy (SAMPI products).

Applications for Liquid Controls and SAMPI [added: consist of] positive displacement flow meters, electronic, registration and control [removed: products include] [added: products, including] mobile and stationary metering installations for wholesale and retail distribution of petroleum and liquefied petroleum gas, aviation refueling, and industrial metering and dispensing of liquids and gases.

Approximately [removed: 44%] [added: 50%] of Energy’s [removed: 2015] [added: 2016] sales were to customers outside the U.S.

Valves consists of the Company’s Alfa [removed: Valvole (“Alfa”) business.][added: Valvole, Richter, and Aegis businesses.]

[removed: Located in Casorezzo, Italy, Alfa’s] [added: Alfa Valvole’s] products are used in various industrial fields for fluid control, in both gas and liquid form, in all sectors of plant engineering, cosmetics, detergents, food [removed: industry, electric energy, pharmaceutical, chemical plants, petrochemical plants, oil, heating/air conditioning and in all markets worldwide and also on ships, ferries and marine oil platforms.]

10-K 1 iex-20161231x10k.htm 10-K

| Item 16. | Form 10-K Summary | [75](#s5b755383f47f423580ba7a61f7f6170e) |

| [Signatures](#sAA0D6817F6B5582886AF3ECED58ADA03) | | [76](#sAA0D6817F6B5582886AF3ECED58ADA03) |

During the fourth quarter of 2016, the Company reorganized certain of its reporting units to align with changes in management and as a result of certain divestitures as well as to align with how management will run the business going forward as follows:

- Moved the Richter and Aegis businesses from the previous Industrial reporting unit to the Valves reporting unit;

- Moved the Trebor business from the previous Industrial reporting unit to the Water reporting unit;

| • | Replaced the previous Industrial reporting unit with the Pumps reporting unit, which now includes Viking and Warren Rupp; |

| • | Combined the Scientific Fluidics and IDEX Optics & Photonics reporting units into the Scientific Fluidics & Optics reporting unit; and |

| • | Combined the Fire Suppression and Rescue reporting units into the Fire & Safety reporting unit. |


industry, electric energy, pharmaceutical, chemical plants, petrochemical plants, oil, heating/air conditioning and also on ships, ferries and marine oil platforms.

Valves maintains operations in Casorezzo, Italy (Alfa Valvole products); Cedar Falls, Iowa, Kempen, Germany, and Suzhou, China (Richter products); and Geismar, Louisiana (Aegis products).

Pumps.

Pumps is a leading manufacturer of rotary internal gear, external gear, vane and rotary lobe pumps, custom-engineered OEM pumps, strainers, gear reducers and engineered pump systems.


Scientific Fluidics & Optics.

AT Films’ core competence is the design and manufacture of filters,

SFC Koenig is a producer of highly engineered expanders and check valves for critical applications across the transportation, hydraulic, aviation and medical markets.

SFC Koenig is based in Dietikon, Switzerland, with additional facilities in North Haven, Connecticut; Illerrieden, Germany; and Suzhou, China.


Fire & Safety.

| James MacLennan | | 53 | | 5 | | Senior Vice President-Chief Information Officer |

Prior to that, Mr. Grogan served as Vice President of Finance, Operations from July 2015 through January 2017.

From January 2012 through July 2015, Mr. Grogan was Vice President-Finance for the Company’s Health & Science Technologies and Fire & Safety/Diversified Products segments.

Prior to that, Mr. Ashleman served as the Vice President-Group Executive of the Company’s Health & Science Technologies and Fire & Safety/Diversified Products segments from January 2014 through July 2015 and President-Group Executive of the Company’s Fire & Safety/Diversified Products segment from 2011 through January 2014.

Mr. MacLennan has served as the Senior Vice President-Chief Information Officer since joining IDEX in March 2012.

Prior to joining IDEX, Mr. MacLennan had a dual role as CIO for Pactiv LLC and Vice President of IT for Reynolds Services Inc.

10-K 1 iex-20151231x10k.htm 10-K

| | |

| --- | --- |

| [Signatures](#s2505359311B87877F762131E20B43222) | | [70](#s2505359311B87877F762131E20B43222) |

During the third quarter of 2015, the Company announced the appointment of Eric Ashleman as Chief Operating Officer.

While there were no changes to the reportable segments or movement of businesses between the reportable segments, the Company no longer delineates between “platforms” and “groups” and made the following changes to how certain businesses are managed internally:

| • | Created the Valves platform as a result of the Alfa Valvole acquisition in June 2015. |

| • | Eliminated the Diaphragm and Dosing Pump Technology (“DDPT”) platform. |

| • | Created the Industrial platform from the businesses previously reported within Chemical, Food & Process (Richter, Viking, and Aegis) plus the Warren Rupp and Trebor businesses from DDPT. |

| • | Created the Water platform from the businesses previously reported within Water Services & Technology (ADS, IETG, and iPEK) plus the Pulsafeeder and Knight businesses from DDPT. |

Alfa is a leader in the design, manufacture and sale of specialty valve products for use in the chemical, petro-chemical, energy and sanitary markets.

IETG’s products and services enable water companies to effectively manage their water distribution and sewerage networks, while its surveillance service specializes in underground asset detection and mapping for utilities and other private companies.

Industrial.

markets.

Scientific Fluidics.

IDEX Optics and Photonics (“IOP”).

IOP consists of the Company’s CVI Melles Griot (“CVI MG”), Semrock, and AT Films (including Precision Photonics products) businesses.

These

CVI MG has manufacturing sites located in Albuquerque, New Mexico; Carlsbad, California; Rochester, New York; Leicester, England; Kyongki-Do, Korea; Tamagawa, Japan; and Didam, The Netherlands.

Semrock is located in Rochester, New York.

AT Films is headquartered in Boulder, Colorado.

Gast consists of the Company’s Gast and Jun-Air businesses.

The Jun-Air business is a provider of low-decibel, ultra-quiet vacuum compressors suitable for medical, dental and laboratory applications.

Fire Suppression.

Fire Suppression’s customers are primarily OEMs.

Fire Suppression is headquartered in Ocala, Florida (Class 1 and Hale products), with additional facilities located in Warwick, England (Godiva products).

Rescue.

Rescue consists of the Company’s Dinglee, Hurst Jaws of Life, Lukas and Vetter businesses, which produce hydraulic, battery, gas and electric-operated rescue equipment, hydraulic re-railing equipment, hydraulic tools for industrial applications, recycling cutters, pneumatic lifting and sealing bags for vehicle and aircraft rescue, environmental protection and disaster control, and shoring equipment for vehicular or structural collapse.

Approximately 36% of Band-It’s 2015 sales were to customers outside the U.S.

Approximately 61% of Dispensing’s 2015 sales were to customers outside the U.S.

Mr. Mitts joined IDEX as Vice President-Corporate Finance in September 2005.

The Company’s principal plants and offices have an aggregate floor space area of approximately [removed: 4.5] [added: 4.7] million square feet, of which 2.9 million square feet [removed: (63%)] [added: (62%)] is located in the U.S. and approximately [removed: 1.7] [added: 1.8] million square feet [removed: (37%)] [added: (38%)] is located outside the U.S., primarily in [removed: the] [added: Germany (9%),] U.K. (8%), [removed: Germany (7%),] Italy (6%), China (4%), India [removed: (3%)] [added: (3%), Canada (2%)] and The Netherlands (2%).

Approximately [removed: 3.0] [added: 3.3] million square feet [removed: (67%)] [added: (70%)] of the principal plant and office floor area is owned by the Company, and the balance is held under lease.

Approximately [removed: 1.9] [added: 1.7] million square feet [removed: (41%)] [added: (36%)] of the principal plant and office floor area is held by business units in the Fluid & Metering Technologies segment; 1.4 million square feet [removed: (31%)] [added: (30%)] is held by business units in the Health & Science Technologies segment; and [removed: 1.0] [added: 1.3] million square feet [removed: (21%)] [added: (28%)] is held by business units in the Fire & Safety/Diversified Products segment.

The remaining 0.3 million square feet include the executive office as well as shared services locations.

As of February [removed: 16, 2016,] [added: 14, 2017,] there were approximately [removed: 6,760] [added: 7,030] stockholders of record of our common stock and there were [removed: 75,929,397] [added: 76,248,604] shares outstanding.

| First Quarter | $ | [removed: 78.85] [added: 84.05] | | | $ | [removed: 69.44] [added: 67.20] | | | $ | [removed: 0.28] [added: 0.32] | | | $ | [removed: 79.27] [added: 78.85] | | | $ | [removed: 68.58] [added: 69.44] | | | $ | [removed: 0.23] [added: 0.28] | |

| Second Quarter | [removed: 80.31] [added: 87.18] | | | | [removed: 73.80] [added: 77.93] | | | | [removed: 0.32] [added: 0.34] | | | | [removed: 80.85] [added: 80.31] | | | | [removed: 69.17] [added: 73.80] | | | | [removed: 0.28] [added: 0.32] | | |

| Third Quarter | [removed: 79.61] [added: 95.33] | | | | [removed: 66.88] [added: 79.91] | | | | [removed: 0.32] [added: 0.34] | | | | [removed: 81.82] [added: 79.61] | | | | [removed: 72.27] [added: 66.88] | | | | [removed: 0.28] [added: 0.32] | | |

| Fourth Quarter | [removed: 79.59] [added: 95.76] | | | | [removed: 69.40] [added: 82.05] | | | | [removed: 0.32] [added: 0.34] | | | | [removed: 78.97] [added: 79.59] | | | | [removed: 65.91] [added: 69.40] | | | | [removed: 0.28] [added: 0.32] | | |

The Company’s purchases of common stock during the quarter ended December 31, [removed: 2015] [added: 2016] are as follows:

| (1) | On December 1, 2015, the Company’s Board of Directors approved an increase of $300.0 million in the authorized level [removed: for] [added: of] repurchases of common stock. This followed the prior Board of Directors approved repurchase authorization of [removed: $400.00 million,] [added: $400.0 million that was] announced by the Company on November 6, 2014. These authorizations have no expiration date. |

The following table compares total stockholder returns over the last five years to the Standard & Poor’s (the “S&P”) 500 Index, the S&P Midcap Industrials Sector Index and the Russell 2000 Index assuming the value of the investment in our common stock and each index was $100 on December 31, [removed: 2010.][added: 2011.]

[removed: ][added: ]

| | 2016 | | | | | | | | | | | | 2015 | | | | | | | | | | |

| October 1, 2016 to October 31, 2016 | — | | | $ | — | | | — | | | $ | 580,010,084 | |

| November 1, 2016 to November 30, 2016 | — | | | — | | | | — | | | 580,010,084 | | |

| December 1, 2016 to December 31, 2016 | — | | | — | | | | — | | | 580,010,084 | | |

| Total | — | | | $ | — | | | — | | | $ | 580,010,084 | |

| | 12/11 | | | 12/12 | | | 12/13 | | | 12/14 | | | 12/15 | | | 12/16 | | |

| IDEX Corporation | $ | 100.00 | | $ | 125.38 | | $ | 199.00 | | $ | 209.75 | | $ | 206.44 | | $ | 242.68 | |

| S&P 500 Index | $ | 100.00 | | $ | 113.41 | | $ | 146.98 | | $ | 163.72 | | $ | 162.53 | | $ | 178.02 | |

| S&P Midcap 400 Industrials Sector Index | $ | 100.00 | | $ | 120.51 | | $ | 171.67 | | $ | 172.18 | | $ | 164.81 | | $ | 209.44 | |

| Russell 2000 Index | $ | 100.00 | | $ | 114.63 | | $ | 157.05 | | $ | 162.60 | | $ | 153.31 | | $ | 183.17 | |

| | 2015 | | | | | | | | | | | | 2014 | | | | | | | | | | |

| October 1, 2015 to October 31, 2015 | 189,470 | | | $ | 74.60 | | | 189,470 | | | $ | 351,872,224 | |

| November 1, 2015 to November 30, 2015 | — | | | — | | | | — | | | 351,872,224 | | |

| December 1, 2015 to December 31, 2015 | 219,803 | | | 76.94 | | | | 219,803 | | | 634,960,648 | | |

| Total | 409,273 | | | $ | 75.86 | | | 409,273 | | | $ | 634,960,648 | |

| | 12/10 | | | 12/11 | | | 12/12 | | | 12/13 | | | 12/14 | | | 12/15 | | |

| IDEX Corporation | $ | 100.00 | | $ | 94.76 | | $ | 118.94 | | $ | 188.78 | | $ | 198.98 | | $ | 195.83 | |

| S&P 500 Index | $ | 100.00 | | $ | 100.00 | | $ | 113.40 | | $ | 146.97 | | $ | 163.71 | | $ | 162.47 | |

| S&P Midcap 400 Industrials Sector Index | $ | 100.00 | | $ | 98.18 | | $ | 117.97 | | $ | 168.05 | | $ | 171.14 | | $ | 161.34 | |

| Russell 2000 Index | $ | 100.00 | | $ | 94.55 | | $ | 114.43 | | $ | 148.48 | | $ | 153.73 | | $ | 144.95 | |

| (Dollars in thousands, except per share data) | [removed: 2015] [added: 2016] | | | | [removed: 2014] [added: 2015] | | | | [removed: 2013] [added: 2014] | | | | [removed: 2012] [added: 2013] | | | | [removed: 2011] [added: 2012] | | |

| Net sales | $ | [removed: 2,020,668] [added: 2,113,043] | | | $ | [removed: 2,147,767] [added: 2,020,668] | | | $ | [removed: 2,024,130] [added: 2,147,767] | | | $ | [removed: 1,954,258] [added: 2,024,130] | | | $ | [removed: 1,838,451] [added: 1,954,258] | |

| Gross profit | [removed: 904,315] [added: 930,767] | | | | [removed: 949,315] [added: 904,315] | | | | [removed: 873,364] [added: 949,315] | | | | [removed: 803,700] [added: 873,364] | | | | [removed: 738,673] [added: 803,700] | | |

| Selling, general and administrative expenses | [removed: 479,408] [added: 498,994] | | | | [removed: 504,419] [added: 479,408] | | | | [removed: 477,851] [added: 504,419] | | | | [removed: 444,490] [added: 477,851] | | | | [removed: 421,703] [added: 444,490] | | |

| [removed: Gain] [added: \+ Loss (gain)] on sale of [removed: business] [added: businesses] | [removed: (18,070] | [added: 22,298] | [removed: )] | | [removed: —] | [added: (18,070] | | [added: )] | [added: |] — | | | | — | | | | — | | |

| Restructuring expenses | [removed: 11,239] [added: 3,674] | | | | [removed: 13,672] [added: 11,239] | | | | [removed: —] [added: 13,672] | | | | [removed: 32,473] [added: —] | | | | [removed: 12,314] [added: 32,473] | | |

| Asset impairments | — | | | | — | | | | — | | | | [removed: 198,519] [added: —] | | | | [removed: —] [added: 198,519] | | |

| Operating income | [removed: 431,738] [added: 405,801] | | | | [removed: 431,224] [added: 431,738] | | | | [removed: 395,513] [added: 431,224] | | | | [removed: 128,218] [added: 395,513] | | | | [removed: 304,656] [added: 128,218] | | |

| Other (income) expense [removed: —] [added: -] net | [added: (8,327 | | ) | |] (2,243 | | ) | | (3,111 | | ) | | 178 | | | | (236 | | ) | [removed: | 1,443 | | |]

| Interest expense | [removed: 41,636] [added: 45,616] | | | | [removed: 41,895] [added: 41,636] | | | | [removed: 42,206] [added: 41,895] | | | | [removed: 42,250] [added: 42,206] | | | | [removed: 29,332] [added: 42,250] | | |

| Provision for income taxes | [removed: 109,538] [added: 97,403] | | | | [removed: 113,054] [added: 109,538] | | | | [removed: 97,914] [added: 113,054] | | | | [removed: 48,574] [added: 97,914] | | | | [removed: 80,024] [added: 48,574] | | |

| Net income | [removed: 282,807] [added: 271,109] | | | | [removed: 279,386] [added: 282,807] | | | | [removed: 255,215] [added: 279,386] | | | | [removed: 37,630] [added: 255,215] | | | | [removed: 193,857] [added: 37,630] | | |

| — basic | $ | [removed: 3.65] [added: 3.57] | | | $ | [removed: 3.48] [added: 3.65] | | | $ | [removed: 3.11] [added: 3.48] | | | $ | [removed: 0.45] [added: 3.11] | | | $ | [removed: 2.34] [added: 0.45] | |

| — diluted | $ | [removed: 3.62] [added: 3.53] | | | $ | [removed: 3.45] [added: 3.62] | | | $ | [removed: 3.09] [added: 3.45] | | | $ | [removed: 0.45] [added: 3.09] | | | $ | [removed: 2.32] [added: 0.45] | |

| — basic | [removed: 77,126] [added: 75,803] | | | | [removed: 79,715] [added: 77,126] | | | | [removed: 81,517] [added: 79,715] | | | | [removed: 82,689] [added: 81,517] | | | | [removed: 82,145] [added: 82,689] | | |

| — diluted | [removed: 77,972] [added: 76,758] | | | | [removed: 80,728] [added: 77,972] | | | | [removed: 82,489] [added: 80,728] | | | | [removed: 83,641] [added: 82,489] | | | | [removed: 83,543] [added: 83,641] | | |

| Year-end shares outstanding | [removed: 76,535] [added: 76,441] | | | | [removed: 78,766] [added: 76,535] | | | | [removed: 81,196] [added: 78,766] | | | | [removed: 82,727] [added: 81,196] | | | | [removed: 83,234] [added: 82,727] | | |

| Cash dividends per share | $ | [removed: 1.28] [added: 1.36] | | | $ | [removed: 1.12] [added: 1.28] | | | $ | [removed: 0.89] [added: 1.12] | | | $ | [removed: 0.80] [added: 0.89] | | | $ | [removed: 0.68] [added: 0.80] | |

| Current assets | $ | [removed: 862,684] [added: 822,721] | | | $ | [removed: 1,075,791] [added: 862,684] | | | $ | [removed: 990,953] [added: 1,075,791] | | | $ | [removed: 881,865] [added: 990,953] | | | $ | [removed: 789,161] [added: 881,865] | |

| Current liabilities | [removed: 309,597] [added: 309,158] | | | | [removed: 411,968] [added: 309,597] | | | | [removed: 304,609] [added: 411,968] | | | | [removed: 291,427] [added: 304,609] | | | | [removed: 258,278] [added: 291,427] | | |

| Current ratio | [removed: 2.8] [added: 2.7] | | | | [removed: 2.6] [added: 2.8] | | | | [removed: 3.3] [added: 2.6] | | | | [removed: 3.0] [added: 3.3] | | | | [removed: 3.1] [added: 3.0] | | |

| Operating working capital (3) | [removed: 370,213] [added: 396,739] | | | | [removed: 366,209] [added: 370,213] | | | | [removed: 350,881] [added: 366,209] | | | | [removed: 373,704] [added: 350,881] | | | | [removed: 396,126] [added: 373,704] | | |

| Total assets (4) | $ | [removed: 2,805,443] [added: 3,154,944] | | | $ | [removed: 2,903,463] [added: 2,805,443] | | | $ | [removed: 2,881,118] [added: 2,903,463] | | | $ | [removed: 2,777,821] [added: 2,881,118] | | | $ | [removed: 2,827,535] [added: 2,777,821] | |

| Total borrowings (4) | [removed: 840,794] [added: 1,015,281] | | | | [removed: 859,345] [added: 840,794] | | | | [removed: 767,417] [added: 859,345] | | | | [removed: 779,007] [added: 767,417] | | | | [removed: 800,238] [added: 779,007] | | |

| Shareholders’ equity | [removed: 1,443,291] [added: 1,543,894] | | | | [removed: 1,486,451] [added: 1,443,291] | | | | [removed: 1,572,989] [added: 1,486,451] | | | | [removed: 1,464,998] [added: 1,572,989] | | | | [removed: 1,513,135] [added: 1,464,998] | | |

| Gross profit | [removed: 44.8] [added: 44.0] | | % | | [removed: 44.2] [added: 44.8] | | % | | [removed: 43.1] [added: 44.2] | | % | | [removed: 41.1] [added: 43.1] | | % | | [removed: 40.2] [added: 41.1] | | % |

| Selling, general and administrative expenses | [removed: 23.7] [added: 23.6] | | % | | [removed: 23.5] [added: 23.7] | | % | | [removed: 23.6] [added: 23.5] | | % | | [removed: 22.7] [added: 23.6] | | % | | [removed: 22.9] [added: 22.7] | | % |

| Operating income | [removed: 21.4] [added: 19.2] | | % | | [removed: 20.1] [added: 21.4] | | % | | [removed: 19.5] [added: 20.1] | | % | | [removed: 6.6] [added: 19.5] | | % | | [removed: 16.6] [added: 6.6] | | % |

| Income before income taxes | [removed: 19.4] [added: 17.4] | | % | | [removed: 18.3] [added: 19.4] | | % | | [removed: 17.4] [added: 18.3] | | % | | [removed: 4.4] [added: 17.4] | | % | | [removed: 14.9] [added: 4.4] | | % |

| Net income | [removed: 14.0] [added: 12.8] | | % | | [removed: 13.0] [added: 14.0] | | % | | [removed: 12.6] [added: 13.0] | | % | | [removed: 1.9] [added: 12.6] | | % | | [removed: 10.5] [added: 1.9] | | % |

| Capital expenditures | $ | [removed: 43,776] [added: 38,242] | | | $ | [removed: 47,997] [added: 43,776] | | | $ | [removed: 31,536] [added: 47,997] | | | $ | [removed: 35,520] [added: 31,536] | | | $ | [removed: 34,548] [added: 35,520] | |

| Depreciation and amortization | [removed: 78,120] [added: 86,892] | | | | [removed: 76,907] [added: 78,120] | | | | [removed: 79,334] [added: 76,907] | | | | [removed: 78,312] [added: 79,334] | | | | [removed: 72,386] [added: 78,312] | | |

| Return on average assets (5) | [removed: 9.9] [added: 9.1] | | % | | [removed: 9.7] [added: 9.9] | | % | | [removed: 9.0] [added: 9.7] | | % | | [removed: 1.3] [added: 9.0] | | % | | [removed: 13.7] [added: 1.3] | | % |

| Borrowings as a percent of capitalization (5) | [removed: 36.8] [added: 39.7] | | % | | [removed: 36.6] [added: 36.8] | | % | | [removed: 32.8] [added: 36.6] | | % | | [removed: 34.7] [added: 32.8] | | % | | [removed: 34.6] [added: 34.7] | | % |

| Return on average shareholders’ equity (5) | [removed: 19.3] [added: 18.2] | | % | | [removed: 18.3] [added: 19.3] | | % | | [removed: 16.8] [added: 18.3] | | % | | [removed: 2.5] [added: 16.8] | | % | | [removed: 13.4] [added: 2.5] | | % |

| Employees at year end | [removed: 6,801] [added: 7,158] | | | | [removed: 6,712] [added: 6,801] | | | | [removed: 6,787] [added: 6,712] | | | | [removed: 6,717] [added: 6,787] | | | | [removed: 6,814] [added: 6,717] | | |

| Record holders at year end | [removed: 6,760] [added: 7,030] | | | | [removed: 6,500] [added: 6,760] | | | | 6,500 | | | | [removed: 6,700] [added: 6,500] | | | | [removed: 7,000] [added: 6,700] | | |

| EBITDA | $ | [removed: 512,101] [added: 501,020] | | | $ | [removed: 511,242] [added: 512,101] | | | $ | [removed: 474,669] [added: 511,242] | | | $ | [removed: 206,766] [added: 474,669] | | | $ | [removed: 375,599] [added: 206,766] | |

| EBITDA margin | [removed: 25.3] [added: 23.7] | | % | | [removed: 23.8] [added: 25.3] | | % | | [removed: 23.5] [added: 23.8] | | % | | [removed: 10.6] [added: 23.5] | | % | | [removed: 20.4] [added: 10.6] | | % |

| Adjusted EBITDA | $ | [removed: 505,270] [added: 530,546] | | | $ | [removed: 524,914] [added: 505,270] | | | $ | [removed: 474,669] [added: 524,914] | | | $ | [removed: 437,758] [added: 474,669] | | | $ | [removed: 387,913] [added: 437,758] | |

| Loss (gain) on sale of businesses - net | 22,298 | | | | (18,070 | | ) | | — | | | | — | | | | — | | |

The financial results prepared in accordance with U.S. GAAP and the reconciliations from these results should be carefully evaluated.

| \+ Loss (gain) on sale of businesses - net | | 22,298 | | | | (18,070 | | ) | | — | | | | — | | | | — | | |

| \+ Pension settlement | | 3,554 | | | | — | | | | — | | | | — | | | | — | | |

| \+ Pension settlement | | 2,032 | | | | — | | | | 540 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |

| EBITDA margin | | 28.6 | | % | | 27.0 | | % | | 26.0 | | % | | 27.1 | | % | | 27.2 | | % | | 29.1 | | % | | 27.1 | | % | | 26.1 | | % | | 27.5 | | % |

| \+ Loss (gain) on sale of businesses - net | | 22,298 | | | | (18,070 | | ) | | — | | | | — | | | | — | | |

| \+ Pension settlement | | 3,554 | | | | — | | | | — | | | | — | | | | — | | |

| | | 2016 | | | | | | | | | | | | 2015 | | | | | | | | | | | | 2014 | | | | | | | | | | |

| \+ Pension settlement | | 2,032 | | | | — | | | | 540 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |

| \+ Restructuring expenses | | 3,674 | | | | 11,239 | | | | 13,672 | | | | — | | | | 32,473 | | |

| \+ Tax impact on restructuring expenses | | (1,299 | | ) | | (3,586 | | ) | | (4,235 | | ) | | — | | | | (9,547 | | ) |

| \+ Tax impact on loss (gain) on sale of businesses | | (9,706 | | ) | | 4,839 | | | | — | | | | — | | | | — | | |

| \+ Asset impairments | | — | | | | — | | | | — | | | | — | | | | 198,519 | | |

| \+ Pension settlement | | 3,554 | | | | — | | | | — | | | | — | | | | — | | |

| \+ Tax impact on pension settlement | | (1,257 | | ) | | — | | | | — | | | | — | | | | — | | |

| \+ Restructuring expenses | | 0.05 | | | | 0.14 | | | | 0.17 | | | | — | | | | 0.39 | | |

| \+ Tax impact on restructuring expenses | | (0.02 | | ) | | (0.04 | | ) | | (0.05 | | ) | | — | | | | (0.11 | | ) |

| \+ Loss (gain) on sale of businesses | | 0.29 | | | | (0.23 | | ) | | — | | | | — | | | | — | | |

| \+ Tax impact on loss (gain) on sale of businesses | | (0.13 | | ) | | 0.06 | | | | — | | | | — | | | | — | | |

| \+ Asset impairments | | — | | | | — | | | | — | | | | — | | | | 2.37 | | |

| +Tax impact on asset impairments | | — | | | | — | | | | | | | | — | | | | (0.42 | | ) |

| \+ Pension settlement | | 0.05 | | | | — | | | | — | | | | — | | | | — | | |

| \+ Tax impact on pension settlement | | (0.02 | | ) | | — | | | | — | | | | — | | | | — | | |

| | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | |

| 6. Reconciliations of EBITDA to Net Income (dollars in thousands) | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | |

| | | For the Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | |

| | | FMT | | | | HST | | | | FSDP | | | | Corporate | | | | IDEX | | |

| Operating income (loss) | | $ | 214,242 | | | $ | 153,722 | | | $ | 121,888 | | | $ | (84,051 | ) | | $ | 405,801 | |

| \- Other (income) expense - net | | (192 | | ) | | (1,960 | | ) | | (1,556 | | ) | | (4,619 | | ) | | (8,327 | | ) |

| \+ Depreciation and amortization | | 28,458 | | | | 45,298 | | | | 11,956 | | | | 1,180 | | | | 86,892 | | |

| EBITDA | | 242,892 | | | | 200,980 | | | | 135,400 | | | | (78,252 | | ) | | 501,020 | | |

| \- Interest expense | | | | | | | | | | | | | | | | | | 45,616 | | |

| \- Provision for income taxes | | | | | | | | | | | | | | | | | | 97,403 | | |

| \- Depreciation and amortization | | | | | | | | | | | | | | | | | | 86,892 | | |

| Net income | | | | | | | | | | | | | | | | | | $ | 271,109 | |

| | | | | | | | | | | | | | | | | | | | | |

| \+ Gain on sale of business | | (18,070 | | ) | | — | | | | — | | | | — | | | | — | | |

| \+ Gain on sale of business | | (18,070 | | ) | | — | | | | — | | | | — | | | | — | | |

| \+ CVI fair value inventory charge | | — | | | | — | | | | — | | | | — | | | | 15,802 | | |

| Operating income | | $ | 204,506 | | | $ | 157,948 | | | $ | 115,745 | | | $ | 216,886 | | | $ | 152,999 | | | $ | 130,494 | | | $ | 211,256 | | | $ | 136,707 | | | $ | 102,730 | |

| | | 2015 | | | | 2014 | | | | 2013 | | | | 2012 | | | | 2011 | | |

| \+ Restructuring expenses, net of tax | | 7,653 | | | | 9,437 | | | | — | | | | 22,926 | | | | 8,716 | | |

| \+ Gain on sale of business, net of tax | | (13,231 | | ) | | — | | | | — | | | | — | | | | — | | |

| \+ Asset impairments, net of tax | | — | | | | — | | | | — | | | | 163,511 | | | | — | | |

| \+ CVI fair value inventory charge, net of tax | | — | | | | — | | | | — | | | | — | | | | 11,185 | | |

| \+ Restructuring expenses, net of tax | | 0.10 | | | | 0.12 | | | | — | | | | 0.27 | | | | 0.10 | | |

| \+ Gain on sale of business, net of tax | | (0.17 | | ) | | — | | | | — | | | | — | | | | — | | |

| \+ CVI fair value inventory charge | | — | | | | — | | | | — | | | | — | | | | 0.14 | | |

We have audited the internal control over financial reporting of IDEX Corporation and subsidiaries (the “Company”) as of December 31, [removed: 2015,] [added: 2016,] based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

As described in Management’s Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at [removed: Novotema SpA (Novotema),] [added: Akron Brass Holding Corporation,] which was acquired [removed: on May 29, 2015, Alfa Valvole S.r.l.][added: in March 2016; AWG Fittings GmbH, which was acquired in July 2016; and SFC Koenig AG, which was acquired in August 2016.]

These exclusions [removed: constitute 14.1% and 8.5% of net and total assets, respectively, 1.8%] [added: collectively represented 6.3%] of net [removed: sales,] [added: sales] and [removed: 1.0%] [added: 19.4%] of [removed: net income] [added: total assets] of the [removed: consolidated financial statement amounts as of and] [added: Company] for the year ended December 31, [removed: 2015.][added: 2016.]

Accordingly, our audit did not include the internal control over financial reporting at [removed: Novotema, Alfa, or CiDRA.][added: Akron Brass Holding Corporation, AWG Fittings GmbH, and SFC Koenig AG.]

A [removed: company’s] [added: company's] internal control over financial reporting is a process designed by, or under the supervision of, the [removed: company’s] [added: company's] principal executive and principal financial officers, or persons performing similar functions, and effected by the [removed: company’s] [added: company's] board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with [removed: accounting principles] generally accepted [removed: in the United States of America (“generally accepted] accounting [removed: principles”).][added: principles.]

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2015,] [added: 2016,] based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, [removed: 2015,] [added: 2016] of the Company and our report dated February [removed: 19, 2016,] [added: 23, 2017] expressed an unqualified opinion on those [removed: consolidated] financial [removed: statements and included an explanatory paragraph regarding the Company’s adoption of Accounting Standards Update 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.”][added: statements.]

| [removed: | Deloitte] [added: /s/ DELOITTE] & [removed: Touche] [added: TOUCHE] LLP | [added: |]

We have audited the accompanying consolidated balance sheets of IDEX Corporation and subsidiaries (the "Company") as of December 31, [removed: 2015] [added: 2016] and [removed: 2014,] [added: 2015,] and the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, [removed: 2015.][added: 2016.]

Our responsibility is to express an opinion on the [removed: consolidated] financial statements based on our audits.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the [removed: consolidated] financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the [removed: consolidated] financial statements.

In our opinion, such consolidated financial statements present fairly, in all material respects, the [removed: consolidated] financial position of IDEX Corporation and subsidiaries as of December 31, [removed: 2015] [added: 2016] and [removed: 2014,] [added: 2015,] and the results of their operations and their cash flows for each of the three years in the period ended December 31, [removed: 2015,] [added: 2016,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, [removed: 2015,] [added: 2016,] based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February [removed: 19, 2016,] [added: 23, 2017] expressed an unqualified opinion on the Company's internal control over financial reporting.

| [removed: | Deloitte] [added: /s/ DELOITTE] & [removed: Touche] [added: TOUCHE] LLP | [added: |]

Based on that assessment, management has concluded that the Company’s internal control over financial reporting was effective as of December 31, [removed: 2015.][added: 2016.]

This exclusion represented [removed: 1.8%] [added: 6.3%] of net sales and [removed: 1.0% of net income as well as 14.1% of net assets and 8.5%] [added: 19.4%] of total assets [added: of the Company] for the year ended December 31, [removed: 2015.][added: 2016.]

The effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2015,] [added: 2016,] has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears herein.

| | [added: 2016 | | | |] 2015 | | | | 2014 | | |

| Cash and cash equivalents [removed: | $] [added: at beginning of year] | 328,018 | | | [removed: $] | 509,137 | | [added: | | 439,629 | | |]

| Receivables — net | [removed: 260,000] [added: 272,813] | | | | [removed: 256,040] [added: 260,000] | | |

| Inventories | [removed: 239,124] [added: 252,859] | | | | [removed: 237,631] [added: 239,124] | | |

| Other current assets | [removed: 35,542] [added: 61,085] | | | | [removed: 72,983] [added: 35,542] | | |

| Total current assets | [removed: 862,684] [added: 822,721] | | | | [removed: 1,075,791] [added: 862,684] | | |

| Property, plant and equipment — net | [removed: 240,945] [added: 247,816] | | | | [removed: 219,543] [added: 240,945] | | |

| Goodwill | [removed: 1,396,529] [added: 1,632,592] | | | | [removed: 1,321,277] [added: 1,396,529] | | |

| Intangible assets — net | [removed: 287,837] [added: 435,504] | | | | [removed: 271,164] [added: 287,837] | | |

| Other noncurrent assets | [removed: 17,448] [added: 16,311] | | | | [removed: 15,688] [added: 17,448] | | |

| Total assets | $ | [added: 3,154,944 | | | $ |] 2,805,443 | | | $ | 2,903,463 | |

| Trade accounts payable | $ | [removed: 128,911] [added: 128,933] | | | $ | [removed: 127,462] [added: 128,911] | |

| Accrued expenses | [removed: 153,672] [added: 152,852] | | | | [removed: 163,409] [added: 153,672] | | |

| Short-term borrowings | [removed: 1,087] [added: 1,046] | | | | [removed: 98,946] [added: 1,087] | | |

| Dividends payable | [removed: 25,927] [added: 26,327] | | | | [removed: 22,151] [added: 25,927] | | |

| Total current liabilities | [removed: 309,597] [added: 309,158] | | | | [removed: 411,968] [added: 309,597] | | |

| Long-term borrowings | [removed: 839,707] [added: 1,014,235] | | | | [removed: 760,399] [added: 839,707] | | |

| Deferred income taxes | [removed: 110,483] [added: 166,427] | | | | [removed: 130,368] [added: 110,483] | | |

| Other noncurrent liabilities | [removed: 102,365] [added: 121,230] | | | | [removed: 114,277] [added: 102,365] | | |

| Total liabilities | [removed: 1,362,152] [added: 1,611,050] | | | | [removed: 1,417,012] [added: 1,362,152] | | |

| Authorized: 150,000,000 shares, $.01 per share par value; Issued: [removed: 90,151,131] [added: 90,200,951] shares at December 31, [removed: 2015] [added: 2016] and [removed: 89,761,305] [added: 90,151,131] shares at December 31, [removed: 2014] [added: 2015] | 902 | | | | [removed: 898] [added: 902] | | |

| Additional paid-in capital | [removed: 679,623] [added: 697,213] | | | | [removed: 647,553] [added: 679,623] | | |

The Company completed the acquisitions of Akron Brass Holding Corporation in March 2016, AWG Fittings GmbH in July 2016 and SFC Koenig AG in August 2016.

| February 23, 2017 | |

| February 23, 2017 | |

| | 2016 | | | | 2015 | | |

| Cash and cash equivalents | $ | 235,964 | | | $ | 328,018 | |

| Loss (gain) on sale of businesses - net | 22,298 | | | | (18,070 | | ) | | — | | |

| Net income | — | | | | 271,109 | | | | — | | | | — | | | | — | | | | — | | | | 271,109 | | |

| Repurchase of 738,593 shares of common stock | — | | | | — | | | | — | | | | — | | | | — | | | | (54,950 | | ) | | (54,950 | | ) |

| Balance, December 31, 2016 | $ | 698,115 | | | $ | 1,834,739 | | | $ | (155,544 | ) | | $ | (27,852 | ) | | $ | (18,257 | ) | | $ | (787,307 | ) | | $ | 1,543,894 | |

| Loss (gain) on sale of businesses - net | 22,298 | | | | (18,070 | | ) | | — | | |

| Pension settlement | 3,554 | | | | — | | | | — | | |

| Proceeds from issuance of 3.20% Senior Notes | 100,000 | | | | — | | | | — | | |

| Proceeds from issuance of 3.37% Senior Notes | 100,000 | | | | — | | | | — | | |

Of the $6.2 million reported as foreign currency transaction gains for the period ending December 31, 2016, $4.7 million was due to intercompany loans established in conjunction with the SFC Koenig acquisition.

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.

The Company applied this standard prospectively and thus, prior periods have not been adjusted.

The impact of the adoption resulted in the following:

| • | The Company recorded a tax benefit of $6.8 million within Provision for income taxes for the year ended December 31, 2016, related to the excess tax benefit on stock options, restricted stock and performance share units. Prior to adoption this amount would have been recorded as a reduction of additional paid-in capital. The adoption of this standard could create volatility in the Company’s effective tax rate going forward. |

| • | The Company elected not to change our policy on accounting for forfeitures and continued to estimate the total number of awards for which the requisite service period will not be rendered. |

| • | The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. |

| • | The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended December 31, 2016. This increased our diluted weighted average common shares outstanding by 127 thousand shares for the year ended December 31, 2016. |

The Company concluded that none of the divestitures that took place during the years ended December 31, 2016 and 2015 met the new criteria for reporting discontinued operations.

The Company did include required disclosures of disposals of components of an entity in Note 2.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test.

Under this ASU, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to the excess, limited to the total amount of goodwill allocated to the reporting unit.

This ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative

assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.

In addition, companies will be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets.

The update is effective for annual and any interim impairment tests for periods beginning after December 15, 2019, and early adoption is permitted.

The Company does not believe the guidance will have a material impact on our consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which amends ASC 740, Income Taxes.

This ASU requires that the income tax consequences of an intra-entity asset transfer other than inventory are recognized at the time of the transfer.

An entity will continue to recognize the income tax consequences of an intercompany transfer of inventory when the inventory is sold to a third party.

The update is effective for financial statements issued for fiscal years beginning after December 15, 2017, and early adoption is permitted.

The ASU requires adoption on a modified-retrospective basis through a cumulative adjustment to retained earnings at the beginning of the period of adoption.

The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force).

This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle.

The Company does not believe the guidance will have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors).

(Alfa) which was acquired on June 10, 2015, and CiDRA Precision Services (CiDRA), which was acquired on July 1, 2015.

| |  |

| February 19, 2016 | |

As discussed in Note 1 to the consolidated financial statements, the Company has changed its method of accounting for deferred income taxes in 2015 due to the adoption of Accounting Standards Update 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.”

| |  |

| February 19, 2016 | |

The Company completed the acquisitions of Novotema SpA in May 2015, Alfa Valvole S.r.l.

in June 2015 and CiDRA Precision Services in July 2015.

| Gain on sale of business | (18,070 | | ) | | — | | | | — | | |

| Balance, December 31, 2012 | $ | 551,559 | | | $ | 1,113,541 | | | $ | 38,639 | | | $ | (45,645 | ) | | $ | (36,397 | ) | | $ | (156,699 | ) | | $ | 1,464,998 | |

| Net income | — | | | | 255,215 | | | | — | | | | — | | | | — | | | | — | | | | 255,215 | | |

| Repurchase of 2,916,280 shares of common stock | — | | | | | | | | | | | | | | | | | | | | (167,503 | | ) | | (167,503 | | ) |

| Gain on sale of business | (18,070 | | ) | | — | | | | — | | |

| Other | — | | | | — | | | | (4,224 | | ) |

| Cash and cash equivalents at beginning of year | 509,137 | | | | 439,629 | | | | 318,864 | | |

Assessments of possible impairments of long-lived assets are made when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable through future operations.

See Recently Adopted Accounting Standards within this footnote for further discussion.

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as noncurrent on the balance sheet.

The classification change for all deferred taxes as noncurrent simplifies entities’ processes as it eliminates the need to separately identify the net current and net noncurrent deferred tax asset or liability in each jurisdiction and allocate valuation allowances.

The Company elected to prospectively adopt the accounting standard in the beginning of the fourth quarter of fiscal year 2015.

Prior periods in our Consolidated Financial Statements were not adjusted.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, that eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively.

Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date.

The impact of the early adoption did not impact the consolidated financial position, results of operations or cash flows of the Company.

The retroactive impact of the early adoption resulted in a decrease to Other noncurrent assets and Long-term debt of $4.6 million on the Consolidated Balance Sheet as of December 31, 2014.

The Company concluded that the divestiture of the Ismatec product line did not quality for reporting as discontinued operations; however, the Company did include required disclosures in Note 2.

of initially adopting ASU 2014-09 recognized at the date of adoption.

The Company is continuing to evaluate the valuation of inventory and accounts receivable associated with the Alfa acquisition and is in the process of finalizing purchase price allocations for the Novotema, Alfa, and CPS acquisitions.

| Goodwill | 33,934 | | | | 71,191 | | | | 9,575 | | | | 748 | | | | 115,448 | | |

| Total assets acquired | 78,188 | | | | 139,534 | | | | 24,415 | | | | 1,850 | | | | 243,987 | | |

| Total liabilities assumed | (17,090 | | ) | | (26,944 | | ) | | (235 | | ) | | — | | | | (44,269 | | ) |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| | | | | | |

On April 28, 2014, the Company acquired the stock of Aegis Flow Technologies (“Aegis”), a leader in the design,

pharmaceutical, semiconductor and pulp/paper industries.

2013 Acquisitions

On March 18, 2013, the Company acquired the stock of FTL Seals Technology, Ltd. (“FTL”).

FTL specializes in the design and application of high integrity rotary seals, specialty bearings, and other custom products for the oil & gas, mining, power generation, and marine markets.

Located in Leeds, England, FTL, along with Precision Polymer Engineering (“PPE”), operates within the Health & Science Technologies segment as part of the Sealing Solutions group and will expand the range of PPE’s technology expertise and markets served.

Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of December 31, [removed: 2015.][added: 2016.]

Management’s Report on Internal Control Over Financial Reporting appearing on page [removed: 32] [added: 35] of this report is incorporated into this Item 9A by reference.

Information under the headings “Election of Directors” and “Section 16(a) Beneficial Ownership Reporting Compliance,” and the information under the subheading “Information Regarding the Board of Directors and Committees,” in the [removed: 2016] [added: 2017] Proxy Statement is incorporated into this Item 10 by reference.

Information under the heading “Executive Compensation” in the [removed: 2016] [added: 2017] Proxy Statement is incorporated into this Item 11 by reference.

Information under the heading “Security Ownership” in the [removed: 2016] [added: 2017] Proxy Statement is incorporated into this Item 12 by reference.

Information with respect to the Company’s equity compensation plans as of December 31, [removed: 2015] [added: 2016] is as follows:

| Equity compensation plans approved by the Company’s stockholders | [removed: 2,727,588] [added: 2,400,384] | | | $ | [removed: 54.05] [added: 61.83] | | | [removed: 6,672,094] [added: 5,382,493] | |

Information under the heading “Information Regarding the Board of Directors and Committees” in the [removed: 2016] [added: 2017] Proxy Statement is incorporated into this Item 13 by reference.

Information under the heading “Principal Accountant Fees and Services” in the [removed: 2016] [added: 2017] Proxy Statement is incorporated into this Item 14 by reference.

Reference is made to the Exhibit Index beginning on page [removed: 76] [added: 83] hereof.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| | | |

| --- | --- | --- |

| | | |

| | IDEX CORPORATION | |

| | | |

| | By: | /s/ HEATH A. MITTS |

| | | Heath A. Mitts |

| | | Senior Vice President and Chief Financial Officer |

Date: February 19, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

| | | | | |

| --- | --- | --- | --- | --- |

| | | | | |

| Signature | | Title | | Date |

| | | | | |

| /s/ ANDREW K. SILVERNAIL | | Chairman of the Board and Chief Executive Officer (Principal Executive Officer) | | |

| Andrew K. Silvernail | | | February 19, 2016 | |

| | | | | |

| /s/ HEATH A. MITTS | | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | | |

| Heath A. Mitts | | | February 19, 2016 | |

| | | | | |

| /s/ MICHAEL J. YATES | | Vice President and Chief Accounting Officer (Principal Accounting Officer) | | |

| Michael J. Yates | | | February 19, 2016 | |

| | | | | |

| /s/ WILLIAM M. COOK | | Director | | |

| William M. Cook | | | February 19, 2016 | |

| | | | | |

| /s/ KATRINA L. HELMKAMP | | Director | | |

| Katrina L. Helmkamp | | | February 19, 2016 | |

| | | | | |

| /s/ GREGORY F. MILZCIK | | Director | | |

| Gregory F. Milzcik | | | February 19, 2016 | |

| | | | | |

| /s/ ERNEST J. MROZEK | | Director | | |

| Ernest J. Mrozek | | | February 19, 2016 | |

| | | | | |

| /s/ DAVID C. PARRY | | Director | | |

| David C. Parry | | | February 19, 2016 | |

None.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| | | |

| --- | --- | --- |

| | | |

| | IDEX CORPORATION | |

| | | |

| | By: | /s/ WILLIAM K. GROGAN |

| | | William K. Grogan |

| | | Senior Vice President and Chief Financial Officer |

Date: February 23, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

| | | | | |

| --- | --- | --- | --- | --- |

| | | | | |

| Signature | | Title | | Date |

| | | | | |

| /s/ ANDREW K. SILVERNAIL | | Chairman of the Board and Chief Executive Officer (Principal Executive Officer) | | |

| Andrew K. Silvernail | | | February 23, 2017 | |

| | | | | |

| /s/ WILLIAM K. GROGAN | | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | | |

| William K. Grogan | | | February 23, 2017 | |

| | | | | |

| /s/ MICHAEL J. YATES | | Vice President and Chief Accounting Officer (Principal Accounting Officer) | | |

| Michael J. Yates | | | February 23, 2017 | |

| | | | | |

| /s/ MARK A. BUTHMAN | | Director | | |

| Mark A. Buthman | | | February 23, 2017 | |

| | | | | |

| /s/ WILLIAM M. COOK | | Director | | |

| William M. Cook | | | February 23, 2017 | |

| | | | | |

| /s/ KATRINA L. HELMKAMP | | Director | | |

| Katrina L. Helmkamp | | | February 23, 2017 | |

| | | | | |

| /s/ ERNEST J. MROZEK | | Director | | |

| Ernest J. Mrozek | | | February 23, 2017 | |

| | | | | |

| /s/ DAVID C. PARRY | | Director | | |