Fortrea Holdings Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Fortrea Holdings Inc. has submitted its 2023 annual report (10-K), detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Fortrea Holdings Inc. (FTRE) filed a Annual Report (10-K) with the SEC on March 13, 2024. Fortrea Holdings Inc. filed its 2023 Form 10-K on March 13, 2024. The filing covers the fiscal year ending December 31, 2023. The company was formerly known as Silver Spinco Inc. and changed its name on February 7, 2023. Fortrea Holdings Inc. operates in the Medical Laboratories sector (SIC 8071). The company's principal business address is 8 Moore Drive, Durham, NC 27709.

Why It Matters

For investors and stakeholders tracking Fortrea Holdings Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Fortrea's financial health, operational strategies, and risk factors for investors and stakeholders. As a newly named entity (formerly Silver Spinco Inc.), this report is crucial for understanding its standalone performance post-separation.

Risk Assessment

Risk Level: medium — Fortrea Holdings Inc. shows moderate risk based on this filing. The company is a relatively new public entity, having been formerly known as Silver Spinco Inc. and changing its name on February 7, 2023, which implies a period of transition and potential integration risks.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Fortrea's performance and future prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-13 — Filing Date (Date of submission)
• 2023-02-07 — Name Change Date (Date Fortrea Holdings Inc. was formerly known as Silver Spinco Inc.)

Key Players & Entities

• Fortrea Holdings Inc. (company) — Filer name
• Silver Spinco Inc. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-13 (date) — Filing date
• 8 Moore Drive, Durham, NC 27709 (address) — Business address
• 877-495-0816 (phone) — Business phone
• 001-41704 (filing_id) — SEC file number
• 24746529 (film_number) — Film number

FAQ

Industry Context

Fortrea Holdings Inc. operates within the Medical Laboratories industry, providing services related to clinical trials and diagnostics.

Regulatory Implications

The filing is a standard 10-K report required by the Securities and Exchange Commission (SEC) for publicly traded companies to disclose annual financial information.

What Investors Should Do

1. Review Fortrea's financial statements for the fiscal year ended December 31, 2023.
2. Analyze the company's business description and risk factors for operational insights.
3. Note the name change from Silver Spinco Inc. and its implications for historical data interpretation.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-13: Filing Date — Date the 10-K was officially filed with the SEC.
• 2023-02-07: Name Change — Date the company changed its name from Silver Spinco Inc. to Fortrea Holdings Inc.

Year-Over-Year Comparison

This is the first 10-K filing for Fortrea Holdings Inc. as a standalone public entity, following its name change from Silver Spinco Inc. on February 7, 2023.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value FTRE The Nasdaq Stock Market
• $36 — es of the registrant on July 3, 2023 of $36.84, was approximately $ 3.3 billion. T
• $2.5 billion — arket can take up to 12 years and costs $2.5 billion or more on average. 1 The biopharmaceu
• $100 billion — technology industry was estimated to be $100 billion in 2022 2 . Of this, we estimate the cu
• $35 billion — nt addressable market for Fortrea to be $35 billion. Over the next several years, pharmaceu

Filing Documents

• ftre-20231231.htm (10-K) — 2120KB
• exhibit44-descriptionofsec.htm (EX-4.4) — 19KB
• exhibit1016-letteragreemen.htm (EX-10.16) — 17KB
• exhibit1017-letteragreemen.htm (EX-10.17) — 20KB
• ex1018jillmcconnellretenti.htm (EX-10.18) — 12KB
• ex1019markmoraisretentiona.htm (EX-10.19) — 12KB
• exhibit1020-nonxemployeedi.htm (EX-10.20) — 22KB
• exhibit1022-formof2024perf.htm (EX-10.22) — 79KB
• exhibit19-ftrexinsidertrad.htm (EX-19) — 54KB
• exhibit21-listofsubsidiari.htm (EX-21) — 96KB
• exhibit231deloitteconsent.htm (EX-23.1) — 2KB
• exhibit311-q42023.htm (EX-31.1) — 10KB
• exhibit312-q423.htm (EX-31.2) — 10KB
• exhibit321-q423.htm (EX-32.1) — 6KB
• exhibit322-q423.htm (EX-32.2) — 6KB
• exhibit97-policyrelatingto.htm (EX-97) — 33KB
• fortrealogo.gif (GRAPHIC) — 3KB
• ftre-20231231_g1.jpg (GRAPHIC) — 24KB
• ftre-20231231_g2.jpg (GRAPHIC) — 23KB
• ftre-20231231_g3.jpg (GRAPHIC) — 20KB
• ftre-20231231_g4.jpg (GRAPHIC) — 64KB
• labcorplogo1.gif (GRAPHIC) — 4KB
• labcorplogoa.gif (GRAPHIC) — 4KB
• 0001965040-24-000010.txt (&nbsp;) — 12429KB
• ftre-20231231.xsd (EX-101.SCH) — 77KB
• ftre-20231231_cal.xml (EX-101.CAL) — 114KB
• ftre-20231231_def.xml (EX-101.DEF) — 359KB
• ftre-20231231_lab.xml (EX-101.LAB) — 850KB
• ftre-20231231_pre.xml (EX-101.PRE) — 677KB
• ftre-20231231_htm.xml (XML) — 1985KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 21 Item 1B. Unresolved Staff Comments 45 Item 1C . Cybersecurity 45 Item 2.

Properties

Properties 46 Item 3.

Legal Proceedings

Legal Proceedings 47 Item 4. Mine Safety Disclosures 47 Part II 48 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48 Item 6. [ Reserved] 48 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 62 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 106 Item 9A.

Controls and Procedures

Controls and Procedures 106 Item 9B. Other Information 106 Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections 106 Part III 107 Item 10. Directors, Executive Officers and Corporate Governance 107 Item 11.

Executive Compensation

Executive Compensation 107 Item 12.

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 107 Item 13. Certain Relationships and Related Transactions, and Director Independence 107 Item 14. Principal Accounting Fees and Services 107 Part IV 108 Item 15. Exhibits and Financial Statement Schedules 108 Item 16. Form 10-K Summary 111

Signatures

Signatures 112 3 Table of Contents Cautionary Statement Concerning Forward-Looking Statements This Form 10-K and other materials we have filed or will file with the Securities and Exchange Commission (the "SEC") include or will include forward-looking statements. Some of the forward-looking statements can be identified by the use of terms such as "believes," "expects," "may," "will," "should," "could," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," or other comparable terms. These forward-looking statements include all matters that are not related to present facts or current conditions or that are not historical facts. They appear in a number of places throughout this Form 10-K and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects and growth strategies, and the industries in which we operate and include, without limitation, statements relating to our future performance. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which are beyond our control. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and industry development may differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-K. In addition, even if our results of operations, financial condition and liquidity, and industry development are consistent with the forward-looking statements contained in this Form 10-K, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors could cause actual results to differ materially from those contained in or implied by the forward-looking statements, including the risks and uncertainties discussed in Item 1A. Risk Factors of this do

BUSINESS

ITEM 1. BUSINESS Overview Fortrea Holdings Inc. is a leading global contract research organization ("CRO"), providing clinical development, patient access solutions and consulting to the life sciences industry. We provide phase I through IV clinical trial management, clinical pharmacology, differentiated technology-enabled trial solutions and post-approval services. For more than 30 years, we have supported our global pharmaceutical, biotechnology, and medical device customers across more than 20 therapeutic areas, providing agile delivery models that include Full Service, Functional Service Provider ("FSP"), and Hybrid structures. We believe we are well positioned to leverage our global scale, access to clinical data-driven insights, industry network, and decades of experience to bring customers distinctive, expert solutions. Our team of approximately 18,000 employees provides services in about 90 countries. Our solutions streamline the biopharmaceutical product and medical device development process. Additionally, we successfully utilize enabling technologies to optimize processes and evolve with a dynamic marketplace. Fortrea combines decades of domain expertise with the nimbleness required to meet market demand for flexible engagements with large and small customers, delivering solutions that bring life-changing treatments to patients faster and creating value for all stakeholders. Our expertise in the biopharmaceutical product and medical device development process has enabled us to design service offerings to better meet the needs of customers. We manage our business in two reporting segments — Clinical Services and Enabling Services. Our Clinical Services segment brings solutions to market that include clinical pharmacology and comprehensive clinical development capabilities. Our Enabling Services segment provides patient access and technology solutions that can be deployed as a standalone offering or across our global solutions depending on the scope of

View Full Filing

View this 10-K filing on SEC EDGAR