IDEX CORP /DE/ Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q)

The following discussion and analysis should be read in conjunction with the
Company's 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 selected 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 also includes certain non-GAAP financial measures that have been
defined and reconciled to their most directly comparable U.S. GAAP measures
later in this Item under the headings "Non-GAAP Disclosures" and "Free Cash
Flow." This discussion also includes Operating working capital, which has been
defined later in this Item under the heading "Cash Flow Summary." 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.

Insight

IDEX is an applied solutions company specializing in the manufacture 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 and 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.

During the three months ended March 31, 2022, the Company achieved a record
quarter in sales, operating margin and earnings per share driven by robust
demand and strong operating performance. Teams successfully navigated the
challenging economic environment arising primarily from material availability
and logistical challenges and also continued to deliver for customers. The
Company expanded operating margin as its highly differentiated product portfolio
enabled strong price capture amid inflation pressures and its focus on
operational productivity yielded positive results. Finally, the Company deployed
additional capital, both within its existing portfolio and with the acquisition
of Nexsight to the IDEX family of businesses as well as through share
repurchases.

Select key financial results for the three months ended March 31, 2022 compared to the same period of the previous year are as follows:

•Sales of $751.1 million increased 15%; organic sales (which excludes
acquisitions/divestitures and foreign currency translation) were up 12%.
•Operating income of $187.6 million increased 21%. Adjusted operating income
increased 18% to $187.6 million.
•Operating margin of 25.0% was up 110 basis points. Adjusted operating margin
increased 70 basis points to 25.0%.
•Net income attributable to IDEX of $140.0 million increased 24%. Adjusted net
income attributable to IDEX increased 21% to $149.8 million.
•Adjusted EBITDA of $214.7 million was 29% of sales.
•Diluted EPS attributable to IDEX of $1.83 increased $0.35, or 24%. Adjusted EPS
attributable to IDEX of $1.96 increased $0.34, or 21%.
•Cash flows provided by operating activities of $79.7 million were down due to
increases in working capital, partially offset by higher earnings. Free cash
flow of $63.6 million was 42% of adjusted net income attributable to IDEX.

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Results of Operations

The following is a discussion and analysis of the Company’s results of operations for the three months ended March 31, 2022 compared to the three months ended March 31, 2021.

Performance for the Three Months Ended March 31, 2022 Compared with the Same
Period in 2021

                                                      Three Months Ended March 31,                   Change
(Dollars in millions, except per share
amounts)                                                                                     2022              2021                $                 % / bps
Net sales                                                                                 $  751.1          $  652.0          $   99.1                     15   %
Cost of sales                                                                                408.6             359.4              49.2                     14  %
Gross profit                                                                                 342.5             292.6              49.9                     17  %
Gross margin                                                                                  45.6  %           44.9  %               n/a                  70 bps
Selling, general and administrative
expenses                                                                                     154.3             134.9              19.4                     14  %
Restructuring expenses and asset
impairments                                                                                    0.6               2.2              (1.6)                   (73  %)
Operating income                                                                             187.6             155.5              32.1                     21  %
Operating margin                                                                              25.0  %           23.9  %               n/a                 110 bps
Other income - net                                                                            (2.3)             (0.8)             (1.5)                   188  %
Interest expense                                                                               9.5              10.7              (1.2)                   (11  %)
Income before income taxes                                                                   180.4             145.6              34.8                     24  %
Provision for income taxes                                                                    40.5              32.9               7.6                     23  %
Effective tax rate                                                                            22.4  %           22.6  %               n/a                (20) bps
Net income attributable to IDEX                                                           $  140.0          $  112.7          $   27.3                     24  %
Diluted earnings per common share
attributable to IDEX                                                                      $   1.83          $   1.48          $   0.35                     24  %



Sales increased 15%, reflecting a 12% increase in organic sales, a 5% increase
from acquisitions (Airtech - June 2021 and ABEL - March 2021) and a 2%
unfavorable impact from foreign currency translation. Sales increased 26%
domestically and 6% internationally, and sales to customers outside the U.S.
were approximately 50% of total sales in the first quarter of 2022 compared to
54% during the same period in 2021.

Cost of sales increased due to higher sales volume, inflation and acquisitions.
Both gross profit and gross margin increased primarily due to higher volume
leverage and strong operational productivity together with favorable price/cost,
partially offset by higher employee-related costs. Additionally, gross profit
increased as a result of acquisitions.

Selling, general and administrative ("SG&A) expenses increased primarily due to
higher employee-related costs, amortization from acquisitions, discretionary
spending and resource investments compared with the same period in 2021.

Restructuring expenses and asset impairments decreased due to severance benefits
and asset impairments related to the consolidation of certain facilities in 2021
that did not reoccur in 2022.

Operating income increased 21%, reflecting an 18% increase in organic operating
income, a 3% increase from acquisitions (Airtech - June 2021 and ABEL - March
2021) and a 2% favorable impact from lower restructuring costs, partially offset
by a 2% unfavorable impact from foreign currency translation. The increase in
operating income is attributable to the operating margin drivers discussed
below.

Operating margin increased 110 basis points, reflecting a 130 basis point
increase in organic operating margin and a 30 basis point favorable impact from
lower restructuring costs, partially offset by a 40 basis point decrease due to
acquisitions primarily driven by higher amortization and a 10 basis point
unfavorable impact from foreign currency translation. The increase in organic
operating margin is primarily due to the gross margin drivers discussed above,
partially offset by higher discretionary spending and resource investments.

Other income, net – increased primarily due to higher gains on sale of assets, partially offset by a decline in the fair market value of marketable securities.

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Interest expense decreased primarily due to lower interest rates on the
Company's indebtedness, partially offset by an increase in the amount of debt
outstanding compared with 2021.

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 increased compared with the same period in 2021 primarily due
to higher earnings while the effective tax rate slightly decreased compared with
the same period in 2021 due to the mix of global pre-tax income across
jurisdictions.

Reportable business segment results

The Company has three reportable segments: Fluid & Metering Technologies (“FMT”), Health & Science Technologies (“HST”) and Fire & Safety/Diversified Products (“FSDP”).

•The FMT segment designs, produces and distributes positive displacement pumps,
valves, small volume provers, 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 and wastewater, agriculture and energy
industries.
•The HST segment designs, produces and distributes a wide range of precision
fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll
compaction and drying systems, pneumatic components and sealing solutions, high
performance molded and extruded sealing components, custom mechanical and shaft
seals, engineered hygienic mixers and valves, biocompatible medical devices and
implantables, air compressors and blowers, optical components and coatings,
laboratory and commercial equipment, precision photonic solutions and precision
gear and peristaltic pump technologies. HST serves a variety of end markets,
including food and beverage, pharmaceutical and biopharmaceutical, cosmetics,
marine, chemical, wastewater and water treatment, life sciences, research and
defense markets.
•The FSDP segment designs, produces and distributes firefighting pumps, valves
and controls, rescue tools, lifting bags, other components and systems for the
fire and rescue industry, engineered stainless steel banding and clamping
devices used in a variety of industrial and commercial applications and
precision equipment for dispensing, metering and mixing colorants and paints
used in a variety of retail and commercial businesses around the world.

Within its three reportable segments, the Company maintains 13 reporting units
where the Company focuses on organic growth and strategic acquisitions.
Management's primary measurements of segment performance are sales, operating
income and operating margin. The table below illustrates the three reportable
segments and the reporting units within each segment.

     FMT                         HST                           FSDP

Pumps            Scientific Fluidics & Optics            Fire & Safety
Water            Sealing Solutions                       Dispensing
Energy           Performance Pneumatic Technologies      BAND-IT
Valves           Material Processing Technologies
Agriculture      Micropump



The table below illustrates the percentages of the share of sales and operating
income contributed by each segment on the basis of total segments (not total
Company) for the three months ended March 31, 2022.

                                         Three Months Ended March 31, 2022
                                                                                 FMT       HST       FSDP      IDEX
Sales                                                                            36  %     42  %     22  %     100  %
Operating Income(1)                                                              39  %     41  %     20  %     100  %


(1) Segment operating income excludes unallocated corporate operating expenses of $16.9 million for the three months ended March 31, 2022.

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Fluid & Metering Technologies Segment

                                       Three Months Ended March 31,                                                              Components of Change
(Dollars in millions)           2022                2021              Change             Organic           Acq/Div(1)            Restructuring            Foreign Currency             Total
Net sales                 $          272.0       $     243.3                 12%               11%                    2%                        -                        (1%)                12%
Operating income                      80.4              62.9                 28%               27%                     -                       2%                        (1%)                28%
Operating margin                   29.5  %           25.8  %             370 bps           380 bps              (40) bps                   30 bps                           -            370 bps


(1) Based on the timing of its acquisition, ABEL’s results for the first two months of 2022 are reflected in the acquisitions/disposals column.

•The change in organic sales was attributed to increases in the Pumps reporting
unit due to strong demand in the industrial and energy markets, in the
Agriculture reporting unit due to favorable commodity prices and global demand
for crops and in the Water reporting unit due to strong demand in the municipal
and industrial water markets as well as water saving growth projects.
•Sales increased 15% domestically and 9% internationally. Sales to customers
outside the U.S. were approximately 45% of total segment sales in the first
quarter of 2022 compared with 46% during the same period in 2021.
•Operating margin of 29.5% increased 370 basis points compared with 25.8% during
the same period in 2021. The change in operating margin was attributed to the
following:
•Organic operating margin increased 380 basis points due to higher volume
leverage and strong operational productivity together with favorable price/cost,
partially offset by increases in employee-related costs and resource
investments. Additionally, the prior year period was unfavorably impacted by
increases in inventory reserves associated with COVID-19 new product development
opportunities not materializing and the fair value inventory step-up charge
related to the ABEL acquisition.
•Lower restructuring costs favorably impacted operating margin by 30 basis
points.
•Acquisitions negatively impacted operating margin by 40 basis points due to:
?Incremental intangible asset amortization from the ABEL acquisition of $0.6
million, which negatively impacted operating margin by 20 basis points; and
?The dilutive impact from the ABEL acquisition on overall FMT operating margin.

Health Technology and Science Sector

                                     Three Months Ended March 31,                                                              Components of Change
(Dollars in millions)          2022                2021             Change             Organic           Acq/Div(1)            Restructuring           Foreign Currency             Total
Net sales                 $         315.2       $    250.4                26%                16%                   11%                       -                        (1%)                26%
Operating income                     83.6             66.6                26%                19%                    7%                      1%                        (1%)                26%
Operating margin                  26.5  %          26.6  %           (10) bps             50 bps              (80) bps                  20 bps                      -                (10) bps


(1) Acquisitions include Airtech in June 2021.


•The change in organic sales was attributed to increases in the Scientific
Fluidics & Optics reporting unit due to strong market demand across analytical
instrumentation, life science and semiconductor markets as well as targeted
growth initiatives tied to next generation sequencing and satellite broadband.
Additionally, increases in the Sealing Solutions reporting unit were driven by
strong demand in the semiconductor and industrial markets and increases in the
Performance Pneumatics Technologies reporting unit were driven by strength in
the industrial market.
•Sales increased 62% domestically and 4% internationally. Sales to customers
outside the U.S. were approximately 52% of total segment sales in the first
quarter of 2022 compared with 63% during the same period in 2021.
•Operating margin of 26.5% decreased 10 basis points compared with 26.6% during
the same period in 2021. The change in operating margin was attributed to the
following:
•Organic operating margin increased 50 basis points due to higher volume
leverage and favorable price/cost which were more than offset by the dilutive
impact of amortization related to Airtech as well as higher employee-related
costs, discretionary spending and resource investments.
•Lower restructuring costs favorably impacted operating margin by 20 basis
points.
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•Acquisitions negatively impacted operating margin by 80 basis points as the
contributions of the Airtech business were more than offset by incremental
intangible asset amortization of $3.9 million, which negatively impacted
operating margin by 130 basis points.

Fire & Security/Diversified Products Segment

                                      Three Months Ended March 31,                                                             Components of Change
(Dollars in millions)          2022                2021             Change              Organic            Acq/Div           Restructuring            Foreign Currency              Total
Net sales                 $         164.7       $    159.5                  3%                  5%                 -                        -                        (2%)                  3%
Operating income                     40.5             44.6                (9%)                 (6)                 -                        -                        (3%)                (9%)
Operating margin                  24.6  %          27.9  %           (330) bps           (320) bps                 -                   10 bps                    (20) bps           (330) bps



•The change in organic sales was driven by an increase in the Dispensing
reporting unit due to North American project volume and strong demand in the
paint market. Additionally, increases in the BAND-IT reporting unit were due to
strong performance in the energy and industrial markets, as the automotive
market continued to be challenged by supply-chain related customer delays.
•Sales increased 1% domestically and 5% internationally. Sales to customers
outside the U.S. were approximately 54% of total segment sales in the first
quarter of 2022 compared with 53% during the same period in 2021.
•Operating margin of 24.6% decreased 330 basis points compared with 27.9% during
the same period in 2021. The change in organic operating margin was attributed
to higher employee-related costs and discretionary spending as well as
compressed price/cost due to long-term original equipment manufacturer
contracts, partially offset by higher volume.

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Liquidity and Capital Resources

Liquidity

Although the COVID-19 pandemic (including the emergence of variant strains) has
impacted and may continue to impact the Company's operating cash flows, based on
management's current expectations and currently available information, the
Company believes current cash, cash from operations and cash available under the
Revolving Facility will be sufficient to meet its operating cash requirements,
planned capital expenditures, interest and principal payments on all borrowings,
pension and postretirement funding requirements, share repurchases and quarterly
dividend payments to holders of the Company's common stock for the foreseeable
future. Additionally, in the event that suitable businesses are available for
acquisition upon acceptable terms, the Company may obtain all or a portion of
the financing for these acquisitions through the incurrence of additional
borrowings.

At March 31, 2022, working capital was $1,213.0 million and the Company's
current ratio was 3.6 to 1. At March 31, 2022, the Company's cash and cash
equivalents totaled $733.2 million, of which $467.7 million was held outside of
the United States. As of March 31, 2022, there was no balance outstanding under
the Revolving Facility and $7.1 million of outstanding letters of credit,
resulting in a net available borrowing capacity under the Revolving Facility of
$792.9 million. The Company believes that additional borrowings through various
financing alternatives remain available, if required.

Cash flow summary

The following table is derived from the Condensed Consolidated Statements of
Cash Flows:

                                                     Three Months Ended March 31,
(In millions)                                             2022                    2021
Net cash flows provided by (used in):
Operating activities                         $         79.7                     $ 109.3
Investing activities                                 (124.4)                     (119.5)
Financing activities                                  (71.3)                      (40.4)



Operating Activities

Cash flow from operating activities decreased $29.6 million for $79.7 millionprimarily due to working capital increases described below, partially offset by higher earnings.

Operating working capital, calculated as accounts receivable plus inventory
minus accounts payable, is used by management as a measurement of operational
results as well as the short-term liquidity of the Company. The following table
details operating working capital as of March 31, 2022 and December 31, 2021:

(In millions)                       March 31, 2022      December 31, 2021
Receivables - net                  $        411.2      $            356.4
Inventories                                   428.5                   370.4
Less: Trade accounts payable                  210.2                   178.8
Operating working capital          $        629.5      $            548.0



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Operating working capital increased $81.5 million to $629.5 million at March 31,
2022, with acquisition, divestiture and foreign currency translation impacts
primarily driving a net $13.0 million of the increase. Excluding these impacts,
accounts receivable increased $45.6 million as a result of higher volume;
inventories increased $46.9 million to support production amid supply chain
difficulties; and trade accounts payable increased $24.0 million due to higher
inventory purchases.

Investing Activities

Cash flow used in investing activities increased $4.9 million for $124.4 millionprimarily due to higher cash outflows for acquisitions with the addition of Nexsight in 2022 compared to ABEL in 2021 and for capital expenditures as the Company continues to expand its China and India
installations, partially offset by higher proceeds from the sale of assets.

Fundraising activities

Cash flows used in financing activities increased by $30.9 million to $71.3
million. During 2022, the Company repurchased 147,500 shares at a cost of $28.3
million, of which $2.0 million did not settle until April, and paid $41.4
million in dividends. During 2021, the Company did not repurchase any shares and
paid $38.1 million in dividends.

Free movement of capital

The Company believes free cash flow, a non-GAAP measure, is an important measure
of performance because it provides a measurement of cash generated from
operations that is available for payment obligations such as planned capital
expenditures, interest and principal payments on all borrowings and quarterly
dividend payments to holders of the Company's common stock as well as for
funding acquisitions. Free cash flow is calculated as cash flows provided by
operating activities less capital expenditures.

The following table reconciles free cash flow to cash flows provided by
operating activities:
                                                                   Three Months Ended March 31,
(Dollars in millions)                                              2022                      2021
Cash flows provided by operating activities                $           79.7           $         109.3
Less: Capital expenditures                                            (16.1)                    (14.6)
Free cash flow                                             $           63.6           $          94.7
Free cash flow as a percent of adjusted net income
attributable to IDEX(1)                                                42.5  %                   76.7  %



(1) Free cash flow as a percent of adjusted net income attributable to IDEX now
reflects the impact of excluding acquisition-related intangible asset
amortization, net of related taxes, from adjusted net income attributable to
IDEX.

The decrease in free cash flow compared to 2021 is due to the increases in working capital discussed above, which more than offset the increase in earnings. Cash needs

Pending Acquisitions

On March 30, 2022, the Company entered into a definitive agreement to acquire
KZValve for cash consideration of $120.0 million. The Company expects to close
the transaction by the end of the second quarter of 2022, subject to regulatory
approval and customary closing conditions.

Capital expenditure

Capital expenditures are generally expenditures for machinery and equipment that
support growth and improved productivity, tooling, business system technology,
replacement of equipment and investments in new facilities. Cash flows from
operations were more than adequate to fund capital expenditures of $16.1 million
and $14.6 million in the first quarters of 2022 and 2021, respectively. The
Company believes it has sufficient operating cash flow to continue to meet
current obligations and invest in planned capital expenditures.

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Share Repurchases

During the three months ended March 31, 2022, the Company repurchased 147,500
shares at a cost of $28.3 million, of which $2.0 million did not settle until
April. There were no share repurchases during the three months ended March 31,
2021. As of March 31, 2022, the amount of share repurchase authorization
remaining was $683.7 million. For additional information regarding the Company's
share repurchase program, refer to   Note 15   in the Notes to Condensed
Consolidated Financial Statements.

After March 31, 2022 and through April 22, 2022the Company bought back 60,362 shares at a price of $11.7 million.

pacts

There are two key financial covenants that the Company is required to maintain
in connection with the Revolving Facility, the 3.20% Senior Notes and the 3.37%
Senior Notes, a minimum interest coverage ratio of 3.0 to 1 and a maximum
leverage ratio of 3.50 to 1. At March 31, 2022, the Company was in compliance
with both of these financial covenants, as the Company's interest coverage ratio
was 21.68 to 1 for covenant calculation purposes and the leverage ratio was 1.46
to 1. There are no financial covenants relating to the 2.625% Senior Notes or
the 3.00% Senior Notes; however, both are subject to cross-default provisions.

Credit ratings

The Company’s credit ratings, which have been independently compiled by the following credit rating agencies, are detailed below:

• S&P Global Ratings affirmed the company’s corporate credit rating of BBB (stable outlook) in June 2021.

• Moody’s Investors Service affirmed the Company’s corporate credit rating at Baa2 (stable outlook) in December 2021.

• Fitch Ratings reaffirmed the Company’s corporate credit rating of BBB+ (stable outlook) in March 2022.

Critical Accounting Estimates

As discussed in the Annual Report on Form 10-K for the year ended December 31,
2021, the preparation of financial statements in conformity with U.S. GAAP
requires management to make estimates and judgments that affect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities, and reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates. There have been no
changes to the Company's critical accounting estimates described in the Annual
Report on Form 10-K for the year ended December 31, 2021.

Non-GAAP Information

Set forth below are reconciliations of each of Organic sales, Adjusted gross
profit (and adjusted gross margin), Adjusted operating income (and adjusted
operating margin), Adjusted net income attributable to IDEX, Adjusted diluted
earnings per share ("EPS") attributable to IDEX, Earnings before interest,
income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to
its respective most directly comparable U.S. GAAP measure. Management uses these
metrics to measure performance of the Company since they exclude items that are
not reflective of ongoing operations, such as fair value inventory step-up
charges, restructuring expenses and asset impairments and gains on sales of
assets. Adjusted net income attributable to IDEX and Adjusted diluted EPS
attributable to IDEX also exclude acquisition-related intangible asset
amortization. Management also supplements its U.S. GAAP financial statements
with adjusted information to provide investors with greater insight,
transparency and a more comprehensive understanding of the information used by
management in its financial and operational decision making. The reconciliation
of segment EBITDA and Adjusted segment EBITDA to net income was performed on a
consolidated basis due to the fact that the Company does not allocate
consolidated interest expense or the consolidated provision for income taxes to
its segments.

This report references organic sales and organic operating income, non-GAAP
measures, that exclude (1) the impact of foreign currency translation and
(2) sales and operating income, respectively, from acquired or divested
businesses during the first 12 months of ownership or prior to divestiture. The
portion of sales and operating income attributable to foreign currency
translation is calculated as the difference between (a) the period-to-period
change in organic sales and organic operating
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income, respectively, and (b) the period-to-period change in organic sales and
organic operating income, respectively, after applying prior period foreign
exchange rates to the current year period. Management believes that reporting
organic sales and organic operating income provides useful information to
investors by helping to identify underlying growth trends in the Company's
business and facilitating easier comparisons of the Company's revenue and
operating performance with prior and future periods and to its peers. The
Company excludes the effect of foreign currency translation from organic sales
and organic operating income because foreign currency translation is not under
management's control, is subject to volatility and can obscure underlying
business trends. The Company excludes the effect of acquisitions and
divestitures because they can obscure underlying business trends and make
comparisons of long-term performance difficult due to the varying nature, size
and number of transactions from period to period and between the Company and its
peers.

Given the acquisitive nature of the Company, which results in a higher level of
amortization expense from recently acquired businesses, management uses EBITDA
as an internal operating metric to provide another representation of the
businesses' performance across the Company's three segments and for enterprise
valuation purposes. Management believes that EBITDA is useful to investors as an
indicator of the strength and performance of the Company and a way to evaluate
and compare operating performance and value companies within the Company's
industry. Management believes that EBITDA margin is useful for the same reason
as EBITDA. EBITDA is also used to calculate certain financial covenants such as
EBITDA interest coverage, which is EBITDA divided by consolidated interest
expense. In addition, this report presents Adjusted EBITDA, which is EBITDA
adjusted for items that are not reflective of ongoing operations as discussed
above and Adjusted EBITDA interest coverage, which is Adjusted EBITDA divided by
consolidated interest expense. Management believes that Adjusted EBITDA is
useful as a performance indicator of ongoing operations. The Company believes
that Adjusted EBITDA is also useful to some investors as an indicator of the
strength and performance of the Company and its segments' ongoing business
operations and a way to evaluate and compare operating performance and value
companies within the Company's industry. The definition of Adjusted EBITDA used
here may differ from that used by other companies.

This report also references free cash flow. This non-GAAP measure is discussed
and reconciled to its most directly comparable U.S. GAAP measure in the section
above titled "Cash Flow Summary."

Non-GAAP financial measures disclosed by the Company should not be considered a substitute for or superior to financial measures prepared in accordance with the WE GAAP. The financial results prepared in accordance with
WE GAAP and reconciliations of these results should be carefully evaluated.

1. Reconciliations of the change in Net sales organic Net sales

Three months completed March 31, 2022

                                                                 FMT                 HST                FSDP                IDEX
Change in net sales                                                12  %               26  %                3  %               15  %
- Net impact from acquisitions/divestitures                         2  %               11  %                -  %                5  %
- Impact from foreign currency                                     (1  %)              (1  %)              (2  %)              (2  %)
Change in organic net sales                                        11  %               16  %                5  %               12  %


2. Reconciliations of reported and adjusted gross profit and margin

                                                                         Three Months Ended March
                                                                                   31,
                                                                                        2022                 2021
Gross profit                                                                       $        342.5       $        292.6
+ Fair value inventory step-up charge                                                           -                  0.7
Adjusted gross profit                                                              $        342.5       $        293.3

Net sales                                                                          $        751.1       $        652.0

Gross margin                                                                              45.6  %              44.9  %
Adjusted gross margin                                                                     45.6  %              45.0  %




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3. Reconciliations Reported-to-Adjusted Operating Income and Margin

                                                                                                 Three Months Ended March 31,
                                                                2022                                                                                   2021
                               FMT             HST            FSDP            Corporate           IDEX             FMT             HST            FSDP               Corporate              IDEX
Reported operating income
(loss)                      $    80.4       $    83.6       $    40.5       

$(16.9) $187.6 $62.9 $66.6 $44.6 $

            (18.6)       $   155.5
 + Restructuring expenses
and asset impairments               -               -               -                -                  -             0.9             0.6             0.1                       0.6             2.2
 + Fair value inventory
step-up charge                      -               -               -                   -               -             0.7               -               -                         -             0.7

Adjusted operating income
(loss)                      $    80.4       $    83.6       $    40.5       

$(16.9) $187.6 $64.5 $67.2 $44.7 $

            (18.0)       $   158.4

Net sales (eliminations) $272.0 $315.2 $164.7 $(0.8) $751.1 $243.3 $250.4 $159.5 $

             (1.2)       $   652.0

Reported operating margin 29.5% 26.5% 24.6%

n/m 25.0% 25.8% 26.6% 27.9%

                       n/m         23.9  %

Adjusted operating margin 29.5% 26.5% 24.6%

          n/m         25.0  %         26.5  %         26.9  %         28.0  %                       n/m         24.3  %



4. Reconciliations of Reported-to-Adjusted Net Income and Diluted
EPS

                                                                            Three Months Ended
                                                                                March 31,
                                                                                      2022                 2021
Reported net income attributable to IDEX                                    

$140.0 $112.7

 + Restructuring expenses and asset impairments                                            -                  2.2
 + Tax impact on restructuring expenses and asset impairments                              -                 (0.5)
 + Fair value inventory step-up charge                                                     -                  0.7
 + Tax impact on fair value inventory step-up charge                                       -                 (0.2)
 - Gains on sales of assets                                                             (2.7)                   -
 + Tax impact on gains on sales of assets                                                0.6                    -
 + Acquisition-related intangible asset amortization                                    15.3                 11.0

+ Tax impact on the amortization of intangible assets related to the acquisition

             (3.4)                (2.5)
Adjusted net income attributable to IDEX                                         $     149.8          $     123.4


                                                                            Three Months Ended
                                                                                March 31,
                                                                                      2022                 2021
Reported diluted EPS attributable to IDEX                                   

$1.83 $1.48

 + Restructuring expenses and asset impairments                                            -                 0.03
 + Tax impact on restructuring expenses and asset impairments                              -                (0.01)
 + Fair value inventory step-up charge                                                     -                 0.01
 + Tax impact on fair value inventory step-up charge                                       -                    -
 - Gains on sales of assets                                                            (0.03)                   -
 + Tax impact on gains on sales of assets                                               0.01                    -
 + Acquisition-related intangible asset amortization                                    0.20                 0.14

+ Tax impact on the amortization of intangible assets related to the acquisition

            (0.05)               (0.03)
Adjusted diluted EPS attributable to IDEX                                   

$1.96 $1.62

Diluted weighted average shares outstanding                                             76.4                 76.3


                                       37
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  Table of Contents
5. Reconciliations of EBITDA to Net Income

                                                                                                                   Three Months Ended March 31,
                                                                               2022                                                                                              2021
                                         FMT                HST              FSDP               Corporate                IDEX             FMT              HST              FSDP               Corporate                IDEX

Reported operating income (loss) $80.4 $83.6 $

    40.5       $             (16.9)       $    187.6       $     62.9       $     66.6       $     44.6       $             (18.6)       $    155.5
+ Other income (expense), net                  1.6              0.2              1.6                      (1.1)              2.3                -              0.4              0.3                        0.1              0.8
+ Depreciation and amortization                7.6             16.0              3.8                        0.1             27.5              7.1             10.5              3.9                        0.1             21.6
EBITDA                                        89.6             99.8 1.0         45.9 2.0                 (17.9)            217.4             70.0             77.5             48.8                     (18.4)            177.9
- Interest expense                                                                                                           9.5                                                                                           10.7
- Provision for income taxes                                                                                                40.5                                                                                           32.9
- Depreciation and amortization                                                                                             27.5                                                                                           21.6
Reported net income                                                                                                   $    139.9                                                                                     $    112.7

Net sales (eliminations)           $         272.0       $    315.2       $    164.7       $              (0.8)       $    751.1       $    243.3       $    250.4       $    159.5       $              (1.2)       $    652.0

Reported operating margin                  29.5  %          26.5  %          24.6  %                        n/m          25.0  %          25.8  %          26.6  %          27.9  %                        n/m          23.9  %
EBITDA margin                              32.9  %          31.7  %          27.9  %                        n/m          28.9  %          28.7  %          31.0  %          30.5  %                        n/m          27.3  %
EBITDA interest coverage                                                                                                    22.9                                                                                           16.5



6. Reconciliations of EBITDA and Adjusted EBITDA

                                                                                                        Three Months Ended March 31,
                                                                       2022                                                                                      2021
                                   FMT             HST            FSDP               Corporate              IDEX             FMT             HST            FSDP               Corporate              IDEX
EBITDA(1)                       $    89.6       $    99.8       $    45.9       $            (17.9)       $   217.4       $    70.0       $    77.5       $    48.8       $            (18.4)       $   177.9
+ Restructuring expenses and
asset impairments                       -               -               -                         -               -             0.9             0.6             0.1                       0.6             2.2
+ Fair value inventory step-up
charge                                  -               -               -                         -               -             0.7               -               -                         -             0.7
- Gains on sales of assets          (1.2)               -           (1.5)                         -           (2.7)               -               -               -                         -               -
Adjusted EBITDA                 $    88.4       $    99.8       $    44.4       $            (17.9)       $   214.7       $    71.6       $    78.1       $    48.9       $            (17.8)       $   180.8

Adjusted EBITDA margin            32.5  %         31.7  %         26.9  %                       n/m         28.6  %         29.4  %         31.2  %         30.6  %                       n/m         27.7  %
Adjusted EBITDA interest
coverage                                                                                                       22.6                                                                                      16.8


(1) EBITDA, a non-GAAP financial measure, is reconciled to net income, its most directly comparable value. WE GAAP financial measure, immediately above in Table 5.

                                       38
--------------------------------------------------------------------------------
  Table of Contents
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 expected organic sales growth and
expected earnings per share, and the assumptions underlying these expectations,
plant and equipment capacity for future growth and the anticipated timing and
effects of planned facility expansion, the duration of supply chain challenges,
anticipated future acquisition behavior and capital deployment, availability of
cash and financing alternatives, the anticipated timing of the closing of the
Company's acquisition of KZValve and the anticipated benefits of the Company's
acquisitions of Airtech, Nexsight and KZValve, 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: the impact of health epidemics and pandemics, including the COVID-19
pandemic, and the impact of related governmental actions, on the Company's
ability to operate its business and facilities, on its customers, on supply
chains and on the U.S. and global economy generally; economic and political
consequences resulting from terrorist attacks and wars, including Russia's
invasion of Ukraine and the global response to this invasion, which, along with
the ongoing effects of the COVID-19 pandemic, could have an adverse impact on
the Company's business by creating disruptions in the global supply chain and by
potentially having an adverse impact on the global economy; levels of industrial
activity and economic conditions in the U.S. and other countries around the
world; pricing pressures and other competitive factors and levels of capital
spending in certain industries, all of which could have a material impact on
order rates and the Company's results; the Company's 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; developments with respect to trade
policy and tariffs; interest rates; capacity utilization and the effect this has
on costs; labor markets; supply chain backlogs, including risks affecting
component availability, labor inefficiencies and freight logistical challenges;
market conditions and material costs; 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.
                                       39

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