Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 13, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BADGER METER INC | |
Entity Central Index Key | 9,092 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 14,512,987 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 4,075 | $ 6,656 |
Receivables | 59,727 | 53,967 |
Inventories: | ||
Finished goods | 26,349 | 25,362 |
Work in process | 12,168 | 13,047 |
Raw materials | 37,226 | 33,365 |
Total inventories | 75,743 | 71,774 |
Prepaid expenses and other current assets | 5,560 | 4,538 |
Deferred income taxes | 4,282 | 4,170 |
Total current assets | 149,387 | 141,105 |
Property, plant and equipment, at cost | 187,983 | 177,400 |
Less accumulated depreciation | (101,475) | (95,594) |
Net property, plant and equipment | 86,508 | 81,806 |
Intangible assets, at cost less accumulated amortization | 58,508 | 61,672 |
Prepaid pension | 740 | 456 |
Other assets | 9,231 | 8,397 |
Goodwill | 48,443 | 47,722 |
Total assets | 352,817 | 341,158 |
Current liabilities: | ||
Short-term debt | 67,380 | 75,927 |
Payables | 18,946 | 16,059 |
Accrued compensation and employee benefits | 9,581 | 11,901 |
Warranty and after-sale costs | 2,351 | 1,739 |
Income and other taxes | 2,358 | 1,449 |
Total current liabilities | 100,616 | 107,075 |
Other long-term liabilities | 4,211 | 1,735 |
Deferred income taxes | 6,566 | 6,399 |
Accrued non-pension postretirement benefits | 6,512 | 6,342 |
Other accrued employee benefits | $ 5,486 | $ 5,276 |
Commitments and contingencies (Note 6) | ||
Shareholders’ equity: | ||
Common stock | $ 20,542 | $ 20,523 |
Capital in excess of par value | 51,080 | 48,353 |
Reinvested earnings | 201,451 | 189,365 |
Accumulated other comprehensive loss | (11,824) | (11,856) |
Less: Employee benefit stock | (870) | (922) |
Treasury stock, at cost | (30,953) | (31,132) |
Total shareholders’ equity | 229,426 | 214,331 |
Total liabilities and shareholders’ equity | $ 352,817 | $ 341,158 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 99,388 | $ 96,271 | $ 281,928 | $ 275,429 |
Cost of sales | 63,287 | 59,806 | 180,609 | 175,182 |
Gross margin | 36,101 | 36,465 | 101,319 | 100,247 |
Selling, engineering and administration | 22,477 | 20,482 | 68,460 | 62,353 |
Operating earnings | 13,624 | 15,983 | 32,859 | 37,894 |
Interest expense, net | 305 | 273 | 941 | 875 |
Earnings before income taxes | 13,319 | 15,710 | 31,918 | 37,019 |
Provision for income taxes | 4,992 | 5,479 | 11,463 | 13,342 |
Net earnings | $ 8,327 | $ 10,231 | $ 20,455 | $ 23,677 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.58 | $ 0.71 | $ 1.42 | $ 1.67 |
Diluted (in dollars per share) | 0.58 | 0.71 | 1.42 | 1.66 |
Dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.19 | $ 0.58 | $ 0.55 |
Shares used in computation of earnings per share: | ||||
Basic (in shares) | 14,392,517 | 14,312,847 | 14,373,470 | 14,177,483 |
Impact of dilutive securities (in shares) | 64,104 | 64,108 | 67,695 | 70,643 |
Diluted (in shares) | 14,456,621 | 14,376,955 | 14,441,165 | 14,248,126 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 8,327 | $ 10,231 | $ 20,455 | $ 23,677 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (170) | (1,203) | (330) | (1,137) |
Pension and postretirement benefits, net of tax | 123 | 567 | 362 | 836 |
Comprehensive income | $ 8,280 | $ 9,595 | $ 20,487 | $ 23,376 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net earnings | $ 20,455 | $ 23,677 |
Adjustments to reconcile net earnings to net cash provided by (used for) operations: | ||
Depreciation | 7,767 | 6,942 |
Amortization | 7,627 | 3,821 |
Deferred income taxes | 10 | (98) |
Noncurrent employee benefits | 300 | 933 |
Stock-based compensation expense | 1,161 | 1,089 |
Changes in: | ||
Receivables | (5,499) | (8,723) |
Inventories | (3,983) | (3,554) |
Prepaid expenses and other current assets | (1,232) | (412) |
Liabilities other than debt | 1,090 | 4,511 |
Total adjustments | 7,241 | 4,509 |
Net cash provided by operations | 27,696 | 28,186 |
Investing activities: | ||
Property, plant and equipment expenditures | (12,872) | (8,776) |
Acquisitions, net of cash acquired and future payments | (3,273) | (1,500) |
Net cash used for investing activities | (16,145) | (10,276) |
Financing activities: | ||
Net decrease in short-term debt | (8,161) | (7,954) |
Dividends paid | (8,369) | (7,900) |
Proceeds from exercise of stock options | 1,270 | 557 |
Tax benefit on stock options | 296 | 161 |
Employee benefit stock purchase, net | (2) | 0 |
Issuance of treasury stock | 495 | 423 |
Net cash used for financing activities | (14,471) | (14,713) |
Effect of foreign exchange rates on cash | 339 | (94) |
Increase (decrease) in cash | (2,581) | 3,103 |
Cash - beginning of period | 6,656 | 7,263 |
Cash - end of period | $ 4,075 | $ 10,366 |
Additional Financial Informatio
Additional Financial Information Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information Disclosures | Additional Financial Information Disclosures The consolidated condensed balance sheet at December 31, 2014 was derived from amounts included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Refer to the footnotes to the financial statements included in that report for a description of the Company’s accounting policies and for additional details of the Company’s financial condition. The details in those notes have not changed except as discussed below and as a result of normal adjustments in the interim. Warranty and After-Sale Costs The Company estimates and records provisions for warranties and other after-sale costs in the period in which the sale is recorded, based on a lag factor and historical warranty claim experience. After-sale costs represent a variety of activities outside of the written warranty policy, such as investigation of unanticipated problems after the customer has installed the product, or analysis of water quality issues. Changes in the Company’s warranty and after-sale costs reserve are as follows: Three months ended Nine months ended September 30, September 30, (In thousands) 2015 2014 2015 2014 Balance at beginning of period $ 2,360 $ 1,433 $ 1,739 $ 882 Net additions charged to earnings 337 366 1,576 1,544 Costs incurred (346 ) (659 ) (964 ) (1,286 ) Balance at end of period $ 2,351 $ 1,140 $ 2,351 $ 1,140 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated condensed financial statements of Badger Meter, Inc. (the “Company” or “Badger Meter”) contain all adjustments (consisting only of normal recurring accruals except as otherwise discussed) necessary to present fairly the Company’s consolidated condensed financial position at September 30, 2015 , results of operations for the three- and nine-month periods ended September 30, 2015 and 2014 , comprehensive income for the three- and nine-month periods ended September 30, 2015 and 2014 , and cash flows for the nine-month periods ended September 30, 2015 and 2014 . The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains a non-contributory defined benefit pension plan that covers substantially all U.S. employees who were employed at December 31, 2011. After that date, no further benefits are being accrued in this plan. For the frozen pension plan, benefits are based primarily on years of service and, for certain employees, levels of compensation. The Company also maintains supplemental non-qualified plans for certain officers and other key employees, and an Employee Savings and Stock Option Plan (“ESSOP”). The Company additionally has a postretirement healthcare benefit plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. Employees are eligible to receive postretirement healthcare benefits upon meeting certain age and service requirements. No employees hired after October 31, 2004 are eligible to receive these benefits. This plan requires employee contributions to offset benefit costs. The following table sets forth the components of net periodic benefit cost for the three months ended September 30, 2015 and 2014 based on December 31, 2014 and 2013 actuarial measurement dates, respectively: Defined pension plan benefits Other postretirement benefits (In thousands) 2015 2014 2015 2014 Service cost – benefits earned during the year $ 8 $ 15 $ 36 $ 32 Interest cost on projected benefit obligations 450 496 62 67 Expected return on plan assets (538 ) (703 ) — — Amortization of prior service cost — — 14 41 Amortization of net loss 177 174 — — Settlement expense — 680 — — Net periodic benefit cost $ 97 $ 662 $ 112 $ 140 The following table sets forth the components of net periodic benefit cost for the nine months ended September 30, 2015 and 2014 based on December 31, 2014 and 2013 actuarial measurement dates, respectively: Defined pension plan benefits Other postretirement benefits (In thousands) 2015 2014 2015 2014 Service cost – benefits earned during the year $ 22 $ 47 $ 110 $ 97 Interest cost on projected benefit obligations 1,350 1,489 188 202 Expected return on plan assets (1,614 ) (2,110 ) — — Amortization of prior service cost — — 40 121 Amortization of net loss 532 521 — — Settlement expense — 680 — — Net periodic benefit cost $ 290 $ 627 $ 338 $ 420 The Company disclosed in its financial statements for the year ended December 31, 2014 that it was not required to make a minimum contribution to the defined benefit pension plan for the 2015 calendar year. The Company continues to believe no additional contributions will be required during 2015 . During the third quarter of 2014, the Company began moving assets within its defined pension plan from its equity and fixed income policy towards a strategy more focused on fixed income. The intent was to more closely align assets with the corresponding pension liability and reduce exposure in equities. The Company also disclosed in its financial statements for the year ended December 31, 2014 that it estimated it would pay $0.4 million in other postretirement benefits in 2015 based on actuarial estimates. As of September 30, 2015 , $0.1 million of such benefits have been paid. The Company continues to believe that its estimated payments for the full year are reasonable. However, such estimates contain inherent uncertainties because cash payments can vary significantly depending on the timing of postretirement medical claims and the collection of the retirees’ portion of certain costs. Note that the amount of benefits paid in calendar year 2015 will not impact the expense for postretirement benefits for 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Components of and changes in accumulated other comprehensive loss at September 30, 2015 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ (11,891 ) $ 35 $ (11,856 ) Other comprehensive loss before reclassifications — (330 ) (330 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $(0.2) million 362 — 362 Net current period other comprehensive income (loss), net of tax 362 (330 ) 32 Accumulated other comprehensive loss $ (11,529 ) $ (295 ) $ (11,824 ) Details of reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2015 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive loss Amortization of defined benefit pension items: Prior service cost (1) $ 40 Amortization of actuarial loss (1) 532 Total before tax 572 Income tax benefit (210 ) Amount reclassified out of accumulated other comprehensive loss $ 362 (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans.” Components of and changes in accumulated other comprehensive loss at September 30, 2014 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ (9,280 ) $ 1,756 $ (7,524 ) Other comprehensive income before reclassifications — (1,137 ) (1,137 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $(0.5) million 836 — 836 Net current period other comprehensive income (loss), net of tax 836 (1,137 ) (301 ) Accumulated other comprehensive (loss) income $ (8,444 ) $ 619 $ (7,825 ) Details of reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2014 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive loss Amortization of defined benefit pension items: Prior service cost (1) $ 121 Settlement expense (1) 680 Amortization of actuarial loss (1) 521 Total before tax 1,322 Income tax benefit (486 ) Amount reclassified out of accumulated other comprehensive loss $ 836 (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans.” |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On August 17, 2015 , the Company's wholly-owned subsidiary, National Meter & Automation (“National Meter”), acquired the assets of United Utilities, Inc. (“United Utilities”) of Smyrna, Tennessee, which was one of the Company's distributors serving Tennessee and Georgia. National Meter will do business in those and additional areas as United Utilities. The total purchase price was $3.3 million , which included assets of $0.8 million of receivables, $0.4 million of inventory, $0.1 million of fixed assets, and $2.0 million of intangibles and goodwill, offset by $2.9 million of pre-existing receivables. The intangible assets acquired are primarily customer relationships with an estimated average useful life of 12 years . The preliminary allocation of the purchase price to the assets acquired was based upon the estimated fair values at the date of acquisition. As of September 30, 2015 , the Company had not completed its analysis for estimating the fair value of the assets acquired. The United Utilities acquisition was accounted for under the purchase method, and accordingly, the results of operations were included in the Company's financial statements from the date of acquisition. The acquisition did not have a material impact on the Company's consolidated financial statements or the notes thereto at September 30, 2015 . On October 1, 2014 , the Company acquired 100% of the outstanding common stock of National Meter and Automation, Inc. of Centennial, Colorado. The purchase was estimated to add approximately $15 million of incremental annual revenues to Badger Meter, after eliminating what would be intercompany sales. National Meter was a major distributor of Badger Meter products for the municipal water utility market, serving customers in Colorado, California, Nevada, Arizona and southern Wyoming. National Meter has become a regional distribution center for Badger Meter in the same areas. In addition to its primary product line of water meters and metering reading systems, National Meter provides services including meter testing, leak detection, water audits, and meter and meter reading system installation. The total purchase consideration for National Meter was $22.9 million , which included $20.3 million in cash, a small working capital adjustment and settlement of pre-existing receivables. The Consolidated Balance Sheets at December 31, 2014 included $2.5 million of deferred payments, of which $2.0 million is payable in late 2015 and early 2016 and was recorded in payables, and $0.5 million is payable in early 2017 and was recorded in other long-term liabilities. The Company’s allocation of the purchase price as of December 31, 2014 included $3.9 million of receivables, $4.5 million of inventories, $2.8 million of property, plant and equipment, $9.8 million of intangibles, and $3.0 million of goodwill, offset by $0.1 million of current liabilities. The intangible assets acquired are primarily customer relationships with an estimated average useful life of 12 years . The preliminary allocation of the purchase price to the assets acquired and liabilities assumed was based upon the estimated fair values at the date of acquisition. The Company finalized the valuation at September 30, 2015 with no changes. The National Meter acquisition was accounted for under the purchase method, and accordingly, the results of operations were included in the Company’s financial statements from the date of acquisition. The acquisition did not have a material impact on the Company’s consolidated financial statements or the notes thereto for 2014 . |
Contingencies, Litigation and C
Contingencies, Litigation and Commitments | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Litigation and Commitments | Contingencies, Litigation and Commitments In the normal course of business, the Company is named in legal proceedings. There are currently no material legal proceedings pending with respect to the Company. The more significant legal proceedings are discussed below. The Company is subject to contingencies related to environmental laws and regulations. The Company is named as one of many potentially responsible parties in two landfill lawsuits. The landfill sites are impacted by the Federal Comprehensive Environmental Response, Compensation and Liability Act and other environmental laws and regulations. At this time, the Company does not believe the ultimate resolution of these matters will have a material adverse effect on the Company’s financial position or results of operations, either from a cash flow perspective or on the financial statements as a whole. This belief is based on the Company’s assessment of its limited past involvement with these landfill sites as well as the substantial involvement of and government focus on other named third parties with these landfill sites. However, due to the inherent uncertainties of such proceedings, the Company cannot predict the ultimate outcome of any of these matters. A future change in circumstances with respect to these specific matters or with respect to sites formerly or currently owned or operated by the Company, off-site disposal locations used by the Company, and property owned by third parties that is near such sites, could result in future costs to the Company and such amounts could be material. Expenditures for compliance with environmental control provisions and regulations during 2014 and the first three quarters of 2015 were not material. Like other companies in recent years, the Company is named as a defendant in numerous pending multi-claimant/multi-defendant lawsuits alleging personal injury as a result of exposure to asbestos, manufactured by third parties, and integrated into or sold with a very limited number of the Company’s products. The Company is vigorously defending itself against these claims. Although it is not possible to predict the ultimate outcome of these matters, the Company does not believe the ultimate resolution of these issues will have a material adverse effect on the Company’s financial position or results of operations, either from a cash flow perspective or on the financial statements as a whole. This belief is based in part on the fact that no claimant has proven or substantially demonstrated asbestos exposure caused by products manufactured or sold by the Company and that a number of cases have been voluntarily dismissed. The Company relies on single suppliers for most brass castings and certain electronic subassemblies in several of its product lines. The Company believes these items would be available from other sources, but that the loss of certain suppliers would result in a higher cost of materials, delivery delays, short-term increases in inventory and higher quality control costs in the short term. The Company attempts to mitigate these risks by working closely with key suppliers, purchasing minimal amounts from alternative suppliers and by purchasing business interruption insurance where appropriate. The Company reevaluates its exposures on a periodic basis and makes adjustments to reserves as appropriate. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes as a percentage of earnings before income taxes for the third quarter of 2015 was 37.5% compared to 34.9% in the third quarter of 2014 . The provision for income taxes as a percentage of earnings before income taxes for the first three quarters of 2015 was 35.9% compared to 36.0% in the first three quarters of 2014. Interim provisions are tied to an estimate of the overall annual rate which can vary due to state taxes, the relationship of foreign and domestic earnings, and production credits available. These items cause variations between periods. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Instruments | Fair Value Measurements of Financial Instruments The Company applies the accounting standards for fair value measurements and disclosures for its financial assets and financial liabilities. The carrying amounts of cash, receivables and payables in the financial statements approximate their fair values due to the short-term nature of these financial instruments. Short-term debt is comprised of notes payable drawn against the Company's lines of credit and commercial paper. Because of its short-term nature, the carrying amount of the short-term debt also approximates fair value. Included in other assets are insurance policies on various individuals who were associated with the Company. The carrying amounts of these insurance policies approximate their fair value. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluates subsequent events at the date of the balance sheet as well as conditions that arise after the balance sheet date but before the financial statements are issued. The effects of conditions that existed at the date of the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, if any, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. For purposes of preparing the accompanying consolidated financial statements and the notes to these financial statements, the Company evaluated subsequent events through the date the accompanying financial statements were issued. |
New Pronouncement
New Pronouncement | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Pronouncement | New Pronouncement In May 2014, the FASB issued ASU No. 2014-09 "Revenue from Contracts with Customers." ASU 2014-09 provides a single principles-based, five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, to identify the performance obligations in the contact, to determine the transaction price, to allocate the transaction price to the performance obligations in the contract and to recognize revenue when each performance obligation is satisfied. Revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. In April 2015, the FASB tentatively agreed to delay the effective date of ASU 2014-09 for one year and to permit early adoption by entities as of the original effective dates. In July 2015, the FASB affirmed its proposal to defer the effective date of the ASU, which has since been issued in August 2015. Considering the one year deferral, ASU 2014-09 will be effective for the Company beginning on January 1, 2018 and the standard allows for either full retrospective adoption or modified retrospective adoption. The Company is continuing to evaluate the impact that the adoption of this guidance will have on its financial condition, results of operations and the presentation of its financial statements. |
Additional Financial Informat16
Additional Financial Information Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Changes in warranty and after-sale costs reserve | Changes in the Company’s warranty and after-sale costs reserve are as follows: Three months ended Nine months ended September 30, September 30, (In thousands) 2015 2014 2015 2014 Balance at beginning of period $ 2,360 $ 1,433 $ 1,739 $ 882 Net additions charged to earnings 337 366 1,576 1,544 Costs incurred (346 ) (659 ) (964 ) (1,286 ) Balance at end of period $ 2,351 $ 1,140 $ 2,351 $ 1,140 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost | The following table sets forth the components of net periodic benefit cost for the three months ended September 30, 2015 and 2014 based on December 31, 2014 and 2013 actuarial measurement dates, respectively: Defined pension plan benefits Other postretirement benefits (In thousands) 2015 2014 2015 2014 Service cost – benefits earned during the year $ 8 $ 15 $ 36 $ 32 Interest cost on projected benefit obligations 450 496 62 67 Expected return on plan assets (538 ) (703 ) — — Amortization of prior service cost — — 14 41 Amortization of net loss 177 174 — — Settlement expense — 680 — — Net periodic benefit cost $ 97 $ 662 $ 112 $ 140 The following table sets forth the components of net periodic benefit cost for the nine months ended September 30, 2015 and 2014 based on December 31, 2014 and 2013 actuarial measurement dates, respectively: Defined pension plan benefits Other postretirement benefits (In thousands) 2015 2014 2015 2014 Service cost – benefits earned during the year $ 22 $ 47 $ 110 $ 97 Interest cost on projected benefit obligations 1,350 1,489 188 202 Expected return on plan assets (1,614 ) (2,110 ) — — Amortization of prior service cost — — 40 121 Amortization of net loss 532 521 — — Settlement expense — 680 — — Net periodic benefit cost $ 290 $ 627 $ 338 $ 420 |
Accumulated Other Comprehensi18
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Components of accumulated other comprehensive loss | Components of and changes in accumulated other comprehensive loss at September 30, 2015 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ (11,891 ) $ 35 $ (11,856 ) Other comprehensive loss before reclassifications — (330 ) (330 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $(0.2) million 362 — 362 Net current period other comprehensive income (loss), net of tax 362 (330 ) 32 Accumulated other comprehensive loss $ (11,529 ) $ (295 ) $ (11,824 ) Details of reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2015 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive loss Amortization of defined benefit pension items: Prior service cost (1) $ 40 Amortization of actuarial loss (1) 532 Total before tax 572 Income tax benefit (210 ) Amount reclassified out of accumulated other comprehensive loss $ 362 (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans.” Components of and changes in accumulated other comprehensive loss at September 30, 2014 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ (9,280 ) $ 1,756 $ (7,524 ) Other comprehensive income before reclassifications — (1,137 ) (1,137 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $(0.5) million 836 — 836 Net current period other comprehensive income (loss), net of tax 836 (1,137 ) (301 ) Accumulated other comprehensive (loss) income $ (8,444 ) $ 619 $ (7,825 ) Details of reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2014 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive loss Amortization of defined benefit pension items: Prior service cost (1) $ 121 Settlement expense (1) 680 Amortization of actuarial loss (1) 521 Total before tax 1,322 Income tax benefit (486 ) Amount reclassified out of accumulated other comprehensive loss $ 836 (1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans.” |
Additional Financial Informat19
Additional Financial Information Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in warranty and after-sale costs reserve | ||||
Balance at beginning of period | $ 2,360 | $ 1,433 | $ 1,739 | $ 882 |
Net additions charged to earnings | 337 | 366 | 1,576 | 1,544 |
Costs incurred | (346) | (659) | (964) | (1,286) |
Balance at end of period | $ 2,351 | $ 1,140 | $ 2,351 | $ 1,140 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined pension plan benefits | ||||
Components of net periodic benefit cost | ||||
Service cost – benefits earned during the year | $ 8 | $ 15 | $ 22 | $ 47 |
Interest cost on projected benefit obligations | 450 | 496 | 1,350 | 1,489 |
Expected return on plan assets | (538) | (703) | (1,614) | (2,110) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net loss | 177 | 174 | 532 | 521 |
Settlement expense | 0 | 680 | 0 | 680 |
Net periodic benefit cost | 97 | 662 | 290 | 627 |
Other postretirement benefits | ||||
Components of net periodic benefit cost | ||||
Service cost – benefits earned during the year | 36 | 32 | 110 | 97 |
Interest cost on projected benefit obligations | 62 | 67 | 188 | 202 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 14 | 41 | 40 | 121 |
Amortization of net loss | 0 | 0 | 0 | 0 |
Settlement expense | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 112 | $ 140 | $ 338 | $ 420 |
Employee Benefit Plans (Detai21
Employee Benefit Plans (Details Textual) - Other postretirement benefits - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to employee benefit plans | $ 0.4 | |
Defined benefit plan contributions paid | $ 0.1 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | $ (11,856) | $ (7,524) |
Other comprehensive income (loss) before reclassifications | (330) | (1,137) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 362 | 836 |
Net current period other comprehensive income (loss), net of tax | 32 | (301) |
Accumulated other comprehensive (loss) income | (11,824) | (7,825) |
Income tax benefit | (210) | (486) |
Unrecognized pension and postretirement benefits | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | (11,891) | (9,280) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 362 | 836 |
Net current period other comprehensive income (loss), net of tax | 362 | 836 |
Accumulated other comprehensive (loss) income | (11,529) | (8,444) |
Income tax benefit | (210) | (486) |
Foreign currency | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at beginning of period | 35 | 1,756 |
Other comprehensive income (loss) before reclassifications | (330) | (1,137) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Net current period other comprehensive income (loss), net of tax | (330) | (1,137) |
Accumulated other comprehensive (loss) income | (295) | 619 |
Income tax benefit | $ 0 | $ 0 |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Reclassifications out of Accumulated Comprehensive Loss) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||
Prior service cost | $ 40 | $ 121 |
Settlement expense | 680 | |
Amortization of actuarial loss | 532 | 521 |
Total before tax | 572 | 1,322 |
Income tax benefit | (210) | (486) |
Amount reclassified out of accumulated other comprehensive loss | $ 362 | $ 836 |
Acquisitions - United Utilities
Acquisitions - United Utilities, Inc. (Details) - United Utilities, Inc. - National Meter and Automation, Inc. - USD ($) $ in Millions | Aug. 17, 2015 | Sep. 30, 2015 |
Business Acquisition | ||
Total purchase consideration | $ 3.3 | |
Receivables | 0.8 | |
Inventory | 0.4 | |
Property, plant and equipment | 0.1 | |
Intangible assets and goodwill | 2 | |
Pre-existing receivables | $ 2.9 | |
Customer relationships | ||
Business Acquisition | ||
Estimated average useful life (in years) | 12 years |
Acquisitions - National Meter (
Acquisitions - National Meter (Details) - USD ($) $ in Thousands | Oct. 01, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Business Acquisition | |||
Goodwill | $ 48,443 | $ 47,722 | |
National Meter and Automation, Inc. | |||
Business Acquisition | |||
Percentage acquired | 100.00% | ||
Incremental revenue | $ 15,000 | ||
Total purchase consideration | 22,900 | ||
Cash payment | $ 20,300 | ||
Deferred payments | 2,500 | ||
Receivables | 3,900 | ||
Inventory | 4,500 | ||
Property, plant and equipment | 2,800 | ||
Intangibles | 9,800 | ||
Goodwill | 3,000 | ||
Current liabilities | 100 | ||
National Meter and Automation, Inc. | Accounts Payable | |||
Business Acquisition | |||
Deferred payments | 2,000 | ||
National Meter and Automation, Inc. | Long-term Debt | |||
Business Acquisition | |||
Deferred payments | $ 500 | ||
National Meter and Automation, Inc. | Customer relationships | |||
Business Acquisition | |||
Estimated average useful life (in years) | 12 years |
Contingencies, Litigation and26
Contingencies, Litigation and Commitments (Details) | 9 Months Ended | |
Sep. 30, 2015potentially_responsible_party | Dec. 31, 2014lawsuit | |
Landfill Lawsuit | ||
Loss Contingencies [Line Items] | ||
Number of defendants | potentially_responsible_party | 1 | |
Landfill | ||
Loss Contingencies [Line Items] | ||
Number of lawsuits | 2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes as a percentage of earnings before income taxes | 37.50% | 34.90% | 35.90% | 36.00% |