Badger Meter (BMI) 10-Q 26 Jul 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 11, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	BMI
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Registrant Name	BADGER METER, INC.
Entity Central Index Key	0000009092
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		29,269,054
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-06706
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0143280
Entity Address, Address Line One	4545 W. Brown Deer Road
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53233
City Area Code	(414)
Local Phone Number	355-0400

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 100,210	$ 87,174
Receivables	77,247	65,866
Inventories:
Finished goods	21,092	25,991
Work in process	24,272	24,747
Raw materials	66,073	48,873
Total inventories	111,437	99,611
Prepaid expenses and other current assets	15,027	8,709
Total current assets	303,921	261,360
Property, plant and equipment, at cost	216,547	216,796
Less accumulated depreciation	(142,507)	(138,746)
Net property, plant and equipment	74,040	78,050
Intangible assets, at cost less accumulated amortization	57,772	64,176
Other assets	15,580	15,390
Deferred income taxes	7,512	7,529
Goodwill	101,206	104,313
Total assets	560,031	530,818
Current liabilities:
Payables	61,597	41,859
Accrued compensation and employee benefits	14,941	20,644
Warranty and after-sale costs	10,859	12,868
Other current liabilities	9,938	6,775
Total current liabilities	97,335	82,146
Other long-term liabilities	32,345	29,804
Deferred income taxes	4,937	5,385
Accrued non-pension postretirement benefits	5,089	5,214
Other accrued employee benefits	4,142	5,199
Commitments and contingencies (Note 5)
Shareholders’ equity:
Common stock	37,221	37,221
Capital in excess of par value	51,015	49,224
Reinvested earnings	372,856	353,535
Accumulated other comprehensive (loss) income	(7,544)	136
Less: Treasury stock, at cost	(37,365)	(37,046)
Total shareholders’ equity	416,183	403,070
Total liabilities and shareholders’ equity	$ 560,031	$ 530,818

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net sales	$ 137,833	$ 122,869	$ 270,235	$ 240,711
Cost of sales	83,073	72,767	164,752	141,247
Gross margin	54,760	50,102	105,483	99,464
Selling, engineering and administration	32,672	31,427	64,533	63,042
Operating earnings	22,088	18,675	40,950	36,422
Interest expense, net	9	7	22	14
Other pension and postretirement costs	33	29	65	60
Earnings before income taxes	22,046	18,639	40,863	36,348
Provision for income taxes	5,382	4,667	9,839	8,595
Net earnings	$ 16,664	$ 13,972	$ 31,024	$ 27,753
Earnings per share:
Basic	$ 0.57	$ 0.48	$ 1.06	$ 0.95
Diluted	0.57	0.48	1.06	0.95
Dividends declared per common share	$ 0.20	$ 0.18	$ 0.40	$ 0.36
Shares used in computation of earnings per share:
Basic	29,210,444	29,114,346	29,204,535	29,105,429
Impact of dilutive securities	133,907	197,828	149,173	207,963
Diluted	29,344,351	29,312,174	29,353,708	29,313,392

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net earnings	$ 16,664	$ 13,972	$ 31,024	$ 27,753
Other comprehensive loss:
Foreign currency translation adjustments	(5,365)	2,806	(7,680)	2,093
Pension and postretirement benefits, net of tax		3		5
Comprehensive income	$ 11,299	$ 16,781	$ 23,344	$ 29,851

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net earnings	$ 31,024	$ 27,753
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation	5,622	5,863
Amortization	7,833	8,088
Deferred income taxes	16	45
Noncurrent employee benefits	(64)	160
Stock-based compensation expense	1,466	947
Changes in:
Receivables	(12,028)	1,622
Inventories	(13,024)	(4,812)
Payables	20,128	5,366
Prepaid expenses and other assets	(8,153)	(1,259)
Other liabilities	(3,908)	1,296
Total adjustments	(2,112)	17,316
Net cash provided by operations	28,912	45,069
Investing activities:
Property, plant and equipment expenditures	(2,773)	(4,378)
Acquisitions, net of cash acquired		(44,506)
Net cash used for investing activities	(2,773)	(48,884)
Financing activities:
Dividends paid	(11,712)	(10,479)
Proceeds from exercise of stock options		352
Repurchase of treasury stock	(427)	(460)
Issuance of treasury stock		72
Net cash used for financing activities	(12,139)	(10,515)
Effect of foreign exchange rates on cash	(964)	(584)
(Decrease) Increase in cash and cash equivalents	13,036	(14,914)
Cash and cash equivalents - beginning of period	87,174	72,273
Cash and cash equivalents - end of period	$ 100,210	$ 57,359

Consolidated Condensed Statem_4

Consolidated Condensed Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock at $1 par value	[1]	Capital in excess of par value	Reinvested earnings	Accumulated other comprehensive income (loss)	Treasury stock (at cost)
Balance at beginning of period at Dec. 31, 2020	$ 361,259	$ 37,221		$ 44,964	$ 314,850	$ 1,313	$ (37,089)
Net earnings	27,753				27,753
Pension and postretirement benefits (net of tax effect)	5					5
Foreign currency translation	2,093					2,093
Cash dividends	(10,499)				(10,499)
Stock options exercised	352			281			71
Stock-based compensation	947			947
Purchase of common stock for treasury stock	(460)						(460)
Issuance of treasury stock	397			308			89
Balance at end of period at Jun. 30, 2021	381,847	37,221		46,500	332,104	3,411	(37,389)
Balance at beginning of period at Mar. 31, 2021	369,849	37,221		45,599	323,383	602	(36,956)
Net earnings	13,972				13,972
Pension and postretirement benefits (net of tax effect)	3					3
Foreign currency translation	2,806					2,806
Cash dividends	(5,251)				(5,251)
Stock-based compensation	573			573
Purchase of common stock for treasury stock	(460)						(460)
Issuance of treasury stock	355			328			27
Balance at end of period at Jun. 30, 2021	381,847	37,221		46,500	332,104	3,411	(37,389)
Balance at beginning of period at Dec. 31, 2021	403,070	37,221		49,224	353,535	136	(37,046)
Net earnings	31,024				31,024
Foreign currency translation	(7,680)					(7,680)
Cash dividends	(11,703)				(11,703)
Stock-based compensation	1,466			1,466
Purchase of common stock for treasury stock	(427)						(427)
Issuance of treasury stock	433			325			108
Balance at end of period at Jun. 30, 2022	416,183	37,221		51,015	372,856	(7,544)	(37,365)
Balance at beginning of period at Mar. 31, 2022	409,881	37,221		49,758	362,046	(2,179)	(36,965)
Net earnings	16,664				16,664
Foreign currency translation	(5,365)					(5,365)
Cash dividends	(5,854)				(5,854)
Stock-based compensation	851			851
Purchase of common stock for treasury stock	(427)						(427)
Issuance of treasury stock	433			406			27
Balance at end of period at Jun. 30, 2022	$ 416,183	$ 37,221		$ 51,015	$ 372,856	$ (7,544)	$ (37,365)
[1] Each common share of stock equals $ 1 par value; therefore, the number of common shares is the same as the dollar value.

Consolidated Condensed Statem_5

Consolidated Condensed Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Tax effect on employee benefit funded status adjustment		$ (1)		$ (2)
Cash dividends (in dollars per share)	$ 0.20	$ 0.18	$ 0.40	$ 0.36
Issuance of treasury stock (in shares)	5	23	26	46
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1	$ 1

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 Basis of Presentation In the opinion of management, the accompanying unaudited consolidated condensed financial statements of 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 June 30, 2022 and December 31, 2021, results of operations, comprehensive income, cash flows and statements of shareholders’ equity for the three and six-month periods ended June 30, 2022 and 2021. 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. Certain prior year amounts have been reclassified to conform to current year presentation.

Additional Financial Informatio

Additional Financial Information Disclosures	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Additional Financial Information Disclosures	Note 2 Additional Financial Information Disclosures The consolidated condensed balance sheet at December 31, 2021 was derived from amounts included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 . Refer to the notes to consolidated 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. Cash Equivalents The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. 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 Six months ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Balance at beginning of period $ 12,409 $ 12,458 $ 12,868 $ 11,617 Net additions charged to earnings 1,152 1,312 2,252 2,732 Costs incurred ( 2,702 ) ( 805 ) ( 4,261 ) ( 1,384 ) Balance at end of period $ 10,859 $ 12,965 $ 10,859 $ 12,965

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Accumulated Other Comprehensive (Loss) Income	Note 3 Accumulated Other Comprehensive (Loss) Income Components of and changes in accumulated other comprehensive loss at June 30, 2022 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 394 $ ( 258 ) $ 136 Other comprehensive loss before reclassifications - ( 7,680 ) ( 7,680 ) Accumulated other comprehensive loss $ 394 $ ( 7,938 ) $ ( 7,544 ) Components of and changes in accumulated other comprehensive income at June 30, 2021 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 55 $ 1,258 $ 1,313 Other comprehensive income before reclassifications - 2,093 2,093 Amounts reclassified from accumulated other comprehensive income, net of tax of ($ 2 ) 5 - 5 Net current period other comprehensive income, net of tax 5 2,093 2,098 Accumulated other comprehensive income $ 60 $ 3,351 $ 3,411 Details of reclassifications out of accumulated other comprehensive income during the six months ended June 30, 2022 and 2021 are immaterial.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2022
Business Combinations [Abstract]
Acquisitions	Note 4 Acquisition s Acquisitions are 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. Effective January 1, 2021 , the Company acquired 100 % of the outstanding stock of Analytical Technology, LLC (“ATi”), headquartered in Collegeville, Pennsylvania, a provider of water quality monitoring systems. The total purchase consideration for ATi, net of cash acquired, was $ 44.0 million. The Company's allocation of the purchase price at December 31, 2021 included $ 3.9 million of receivables, $ 3.9 million of inventory, $ 2.5 million of other assets, $ 21.0 million of intangibles and $ 16.4 million of goodwill that is deductible for tax purposes. The intangible assets acquired are primarily customer relationships, developed technology and trademarks with estimated average useful lives of 12 to 15 years . The Company also assumed $ 1.4 million of accounts payable, $ 0.6 million of deferred tax liabilities and $ 1.7 million of other liabilities as part of the acquisition. The allocation of the purchase price to the assets acquired was based upon the estimated fair values at the date of acquisition. As of December 31, 2021, the Company had completed its analysis for estimating the fair value of the assets acquired with no additional adjustments.

Contingencies, Litigation and C

Contingencies, Litigation and Commitments	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies, Litigation and Commitments	Note 5 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 Company is subject to contingencies related to environmental laws and regulations. A future change in circumstances with respect to 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 2021 and the first half of 2022 were not material. The Company relies on single suppliers for most brass castings and certain resin and 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 could 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	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 6 Income Taxes The Company is subject to income taxes in the United States and numerous foreign jurisdictions. The Company’s income tax positions are based on interpretations of income tax laws and rulings in each of the jurisdictions that the Company operates. Significant judgment is required in determining the worldwide provision for income taxes and recording the related deferred tax assets and liabilities. The Company’s deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income for the years in which the assets or liabilities are expected to be realized or settled. Interim provisions are tied to an estimate of the overall annual rate which can vary due to the relationship of foreign and domestic earnings, state taxes and available deductions, credits and discrete items. The Company’s earnings before incomes taxes, provision for income taxes, and effective income tax rate are as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2022 2021 2022 2021 Earnings before income taxes $ 22,046 $ 18,639 $ 40,863 $ 36,348 Provision for income taxes 5,382 4,667 9,839 8,595 Effective income tax rate 24.4 % 25.0 % 24.1 % 23.6 %

Fair Value Measurements of Fina

Fair Value Measurements of Financial Instruments	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements of Financial Instruments	Note 7 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 and cash equivalents, receivables and payables in the financial statements approximate their fair values due to the short-term nature of these financial instruments. Included in other assets are insurance policies on various individuals who were previously employed by the Company. The carrying amounts of these insurance policies approximate their fair value.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 8 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 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 that the accompanying financial statements were issued, and has determined that no material subsequent events exist through the date of this filing.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 9 Revenue Recognition Revenue for sales of products and services is derived from contracts with customers. The products and services promised in contracts include the sale of utility water and flow instrumentation products, such as flow meters and radios, quality sensing equipment, software access and other ancillary services. Contracts generally state the terms of sale, including the description, quantity and price of each product or service. Since the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the majority of the Company's contracts do not contain variable consideration. The Company establishes a provision for estimated warranty and returns as well as certain after sale costs as discussed in Note 2 "Additional Financial Information Disclosures" in the Notes to Unaudited Consolidated Condensed Financial Statements. The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. Information regarding revenues disaggregated by geographic area is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Revenues: United States $ 120,823 $ 103,402 $ 233,577 $ 202,144 Foreign: Asia 2,930 4,466 7,128 8,475 Canada 2,945 2,729 5,908 6,065 Europe 7,121 7,709 15,353 16,353 Mexico 809 1,873 1,385 2,978 Middle East 2,124 2,132 3,783 3,760 Other 1,081 558 3,101 936 Total $ 137,833 $ 122,869 $ 270,235 $ 240,711 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Revenue recognized over time $ 8,522 6.2 % $ 7,118 5.8 % $ 16,230 6.0 % $ 13,579 5.6 % Revenue recognized at a point in time 129,311 93.8 % 115,751 94.2 % 254,005 94.0 % 227,132 94.4 % Total $ 137,833 100.0 % $ 122,869 100.0 % $ 270,235 100.0 % $ 240,711 100.0 % The majority of the Company's revenue that is recognized over time relates to the BEACON® AMA software as a service, but also includes training, certain installation and other revenues. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during shipping. The Company performs its obligations under a contract by shipping products or performing services in exchange for consideration. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable to the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods or services and the Company has not transferred control of the goods or services. The closing balances of the Company's receivables and contract liabilities are as follows: June 30, December 31, (In thousands) Receivables $ 77,247 $ 65,866 Contract liabilities 32,776 30,194 Contract liabilities are included in Payables and Other long-term liabilities on the Company’s Consolidated Condensed Balance Sheets. The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables in the six-month period ended June 30, 2022 and twelve-month period ended December 31, 2021. A performance obligation is a promise to transfer a distinct good or service to the customer. At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customer. In order to identify performance obligations, the Company considers all of the products or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company's performance obligations are satisfied at a point in time or over time as work progresses. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. The majority of the Company's revenue that is recognized over time relates to the BEACON AMA software as a service. As of June 30, 2022, the Company had certain contracts with unsatisfied performance obligations. For contracts recorded as contract liabilities, $ 32.8 million was the aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of the end of the reporting period. The Company estimates that revenue recognized from satisfying those performance obligations will be approximately $ 4.2 million in 2022 , $ 4.8 million in 2023 , $ 4.3 million in 2024 , $ 4.0 million in 2025 , $ 3.3 million in 2026 , $ 2.6 million in 2027 and $ 9.6 million thereafter .

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	Note 10 Leases The Company rents facilities, equipment and vehicles under operating leases, some of which contain renewal options. Upon inception of a rent agreement, the Company determines whether the arrangement contains a lease based on the unique conditions present. Leases that have a term over a year are recognized on the balance sheet as right-of-use assets and lease liabilities. Right-of-use assets are included in Other assets on the Company’s Consolidated Condensed Balance Sheets. Lease liabilities are included in Other current liabilities and Other long-term liabilities on the Company’s Consolidated Condensed Balance Sheets. Information regarding the Company's right-of-use assets and the corresponding lease liabilities are as follows: June 30, December 31, (In thousands) Right-of-use assets $ 7,193 $ 5,877 Lease liabilities 7,576 6,177 The Company’s operating lease agreements have lease and non-lease components that require payments for common area maintenance, property taxes and insurance. The Company has elected to account for both lease and non-lease components as one lease component. The fixed and in-substance fixed consideration in the Company’s rent agreements constitute operating lease expense that is included in the capitalized right-of-use assets and lease liabilities. The variable and short-term lease expense payments are not included in the present value of the right-of use-assets and lease liabilities on the Consolidated Condensed Balance Sheets. The Company’s rent expense is as follows: Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (In thousands) Operating lease expense $ 836 $ 768 $ 1,698 $ 1,652 Variable and short-term lease expense 57 36 103 76 Rent expense $ 893 $ 804 $ 1,801 $ 1,728 The Company records right-of-use assets and lease liabilities based upon the present value of lease payments over the expected lease term. The Company’s lease agreements typically do not have implicit interest rates that are readily determinable. As a result, the Company utilizes an incremental borrowing rate that would be incurred to borrow on a collateralized basis over a similar term in a comparable economic environment. As of June 30, 2022 and December 31, 2021, the remaining lease term on the Company’s leases wa s 5.6 years. As of June 30, 2022 and December 31, 2021 , the discount rate was 5.0 %. The future min imum lease payments to be paid under operating leases are as follows: June 30, (In thousands) 2022 (remaining six months) $ 1,196 2023 2,310 2024 1,940 2025 1,739 2026 675 Thereafter 885 Total future lease payments 8,745 Present value adjustment ( 1,169 ) Present value of future lease payments $ 7,576

Additional Financial Informat_2

Additional Financial Information Disclosures (Tables)	6 Months Ended
	Jun. 30, 2022
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 Six months ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Balance at beginning of period $ 12,409 $ 12,458 $ 12,868 $ 11,617 Net additions charged to earnings 1,152 1,312 2,252 2,732 Costs incurred ( 2,702 ) ( 805 ) ( 4,261 ) ( 1,384 ) Balance at end of period $ 10,859 $ 12,965 $ 10,859 $ 12,965

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive (Loss) Income (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Components of and Changes in Accumulated Other Comprehensive (Loss) Income	Components of and changes in accumulated other comprehensive loss at June 30, 2022 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 394 $ ( 258 ) $ 136 Other comprehensive loss before reclassifications - ( 7,680 ) ( 7,680 ) Accumulated other comprehensive loss $ 394 $ ( 7,938 ) $ ( 7,544 ) Components of and changes in accumulated other comprehensive income at June 30, 2021 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 55 $ 1,258 $ 1,313 Other comprehensive income before reclassifications - 2,093 2,093 Amounts reclassified from accumulated other comprehensive income, net of tax of ($ 2 ) 5 - 5 Net current period other comprehensive income, net of tax 5 2,093 2,098 Accumulated other comprehensive income $ 60 $ 3,351 $ 3,411

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Earnings Before Incomes Taxes, Provision for Income Taxes, and Effective Income Tax Rate	The Company’s earnings before incomes taxes, provision for income taxes, and effective income tax rate are as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2022 2021 2022 2021 Earnings before income taxes $ 22,046 $ 18,639 $ 40,863 $ 36,348 Provision for income taxes 5,382 4,667 9,839 8,595 Effective income tax rate 24.4 % 25.0 % 24.1 % 23.6 %

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Information regarding revenues disaggregated by geographic area is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Revenues: United States $ 120,823 $ 103,402 $ 233,577 $ 202,144 Foreign: Asia 2,930 4,466 7,128 8,475 Canada 2,945 2,729 5,908 6,065 Europe 7,121 7,709 15,353 16,353 Mexico 809 1,873 1,385 2,978 Middle East 2,124 2,132 3,783 3,760 Other 1,081 558 3,101 936 Total $ 137,833 $ 122,869 $ 270,235 $ 240,711 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Revenue recognized over time $ 8,522 6.2 % $ 7,118 5.8 % $ 16,230 6.0 % $ 13,579 5.6 % Revenue recognized at a point in time 129,311 93.8 % 115,751 94.2 % 254,005 94.0 % 227,132 94.4 % Total $ 137,833 100.0 % $ 122,869 100.0 % $ 270,235 100.0 % $ 240,711 100.0 %
Contract with Customer, Liability and Receivables	The closing balances of the Company's receivables and contract liabilities are as follows: June 30, December 31, (In thousands) Receivables $ 77,247 $ 65,866 Contract liabilities 32,776 30,194

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of Right-of-Use Assets and the Corresponding Lease Liabilities	Information regarding the Company's right-of-use assets and the corresponding lease liabilities are as follows: June 30, December 31, (In thousands) Right-of-use assets $ 7,193 $ 5,877 Lease liabilities 7,576 6,177
Schedule of Rent Expenses	The Company’s rent expense is as follows: Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (In thousands) Operating lease expense $ 836 $ 768 $ 1,698 $ 1,652 Variable and short-term lease expense 57 36 103 76 Rent expense $ 893 $ 804 $ 1,801 $ 1,728
Schedule of Future Minimum Lease Payments to be Paid under Operating Leases	The future min imum lease payments to be paid under operating leases are as follows: June 30, (In thousands) 2022 (remaining six months) $ 1,196 2023 2,310 2024 1,940 2025 1,739 2026 675 Thereafter 885 Total future lease payments 8,745 Present value adjustment ( 1,169 ) Present value of future lease payments $ 7,576

Additional Financial Informat_3

Additional Financial Information Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Changes in warranty and after-sale costs reserve
Balance at beginning of period	$ 12,409	$ 12,458	$ 12,868	$ 11,617
Net additions charged to earnings	1,152	1,312	2,252	2,732
Costs incurred	(2,702)	(805)	(4,261)	(1,384)
Balance at end of period	$ 10,859	$ 12,965	$ 10,859	$ 12,965

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) Income - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive (Loss) Income [Line Items]
Amounts reclassified from AOCI, tax		$ (2)
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 403,070	361,259
Balance at end of period	416,183	381,847
Unrecognized pension and postretirement benefits
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	394	55
Other comprehensive (loss) income before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income, net of tax		5
Net current period other comprehensive income (loss), net of tax		5
Balance at end of period	394	60
Foreign currency
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(258)	1,258
Other comprehensive (loss) income before reclassifications	(7,680)	2,093
Amounts reclassified from accumulated other comprehensive income, net of tax		0
Net current period other comprehensive income (loss), net of tax		2,093
Balance at end of period	(7,938)	3,351
Accumulated other comprehensive (loss) income
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	136	1,313
Other comprehensive (loss) income before reclassifications	(7,680)	2,093
Amounts reclassified from accumulated other comprehensive income, net of tax		5
Net current period other comprehensive income (loss), net of tax		2,098
Balance at end of period	$ (7,544)	$ 3,411

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 01, 2021	Jun. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 101,206	$ 104,313
Analytical Technology, LLC
Business Acquisition [Line Items]
Date of acquisition	Jan. 01, 2021
Outstanding common stock acquired (as a percent)	100%
Total purchase consideration		44,000
Receivables		3,900
Inventory		3,900
Other assets		2,500
Intangibles		21,000
Goodwill		16,400
Accounts payable		1,400
Deferred tax liabilities		600
Other liabilities		1,700
Fair value of assets acquired		$ 0
Analytical Technology, LLC | Customer Relationships, Developed Technology and Trademarks | Minimum
Business Acquisition [Line Items]
Estimated average useful life		12 years
Analytical Technology, LLC | Customer Relationships, Developed Technology and Trademarks | Maximum
Business Acquisition [Line Items]
Estimated average useful life		15 years

Income Taxes - Schedule of Earn

Income Taxes - Schedule of Earnings Before Incomes Taxes, Provision for Income Taxes, and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Earnings before income taxes	$ 22,046	$ 18,639	$ 40,863	$ 36,348
Provision for income taxes	$ 5,382	$ 4,667	$ 9,839	$ 8,595
Effective income tax rate	24.40%	25%	24.10%	23.60%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 137,833	$ 122,869	$ 270,235	$ 240,711
Revenue, remaining performance obligation, percentage	100%	100%	100%	100%
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Revenues	$ 8,522	$ 7,118	$ 16,230	$ 13,579
Revenue recognized over time | Service Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage	6.20%	5.80%	6%	5.60%
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Revenues	$ 129,311	$ 115,751	$ 254,005	$ 227,132
Revenue recognized at a point in time | Product Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage	93.80%	94.20%	94%	94.40%
United States
Disaggregation of Revenue [Line Items]
Revenues	$ 120,823	$ 103,402	$ 233,577	$ 202,144
Asia
Disaggregation of Revenue [Line Items]
Revenues	2,930	4,466	7,128	8,475
Canada
Disaggregation of Revenue [Line Items]
Revenues	2,945	2,729	5,908	6,065
Europe
Disaggregation of Revenue [Line Items]
Revenues	7,121	7,709	15,353	16,353
Mexico
Disaggregation of Revenue [Line Items]
Revenues	809	1,873	1,385	2,978
Middle East
Disaggregation of Revenue [Line Items]
Revenues	2,124	2,132	3,783	3,760
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 1,081	$ 558	$ 3,101	$ 936

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Receivables	$ 77,247	$ 65,866
Contract liabilities	$ 32,776	$ 30,194

Revenue Recognition - Narrative

Revenue Recognition - Narrative 1 (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 32.8

Revenue Recognition - Narrati_2

Revenue Recognition - Narrative 1 (Details 1) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 32.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4.2
Expected timing of performance obligation satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4.8
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4.3
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 3.3
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 2.6
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 9.6
Expected timing of performance obligation satisfaction, period	1 year

Leases - Narrative (Details)

Leases - Narrative (Details)	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating leases, remaining lease term	5 years 7 months 6 days	5 years 7 months 6 days
Operating leases, discount rate	5%	5%

Leases - Schedule of Right-of-U

Leases - Schedule of Right-of-Use Assets and the Corresponding Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right-of-use assets	$ 7,193	$ 5,877
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets Noncurrent	Other Assets Noncurrent
Lease liabilities	$ 7,576	$ 6,177
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities Current, Other Liabilities Noncurrent	Other Liabilities Current, Other Liabilities Noncurrent

Leases - Schedule of Rent Expen

Leases - Schedule of Rent Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating lease expense	$ 836	$ 768	$ 1,698	$ 1,652
Variable and short-term lease expense	57	36	103	76
Rent expense	$ 893	$ 804	$ 1,801	$ 1,728

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments to be Paid under Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2022 (remaining six months)	$ 1,196
2023	2,310
2024	1,940
2025	1,739
2026	675
Thereafter	885
Total future lease payments	8,745
Present value adjustment	(1,169)
Present value of future lease payments	$ 7,576	$ 6,177