Badger Meter (BMI) 10-Q 29 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 08, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
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		29,117,383
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	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 70,376	$ 48,871
Receivables	59,164	61,365
Inventories:
Finished goods	19,469	22,946
Work in process	16,776	17,728
Raw materials	38,185	41,274
Total inventories	74,430	81,948
Prepaid expenses and other current assets	7,459	7,910
Total current assets	211,429	200,094
Property, plant and equipment, at cost	211,457	209,825
Less accumulated depreciation	(126,887)	(124,064)
Net property, plant and equipment	84,570	85,761
Intangible assets, at cost less accumulated amortization	46,396	48,163
Other assets	15,288	15,875
Deferred income taxes	2,015	742
Goodwill	71,258	71,258
Total assets	430,956	421,893
Current liabilities:
Short-term debt	4,400	4,480
Payables	35,915	31,523
Accrued compensation and employee benefits	9,181	12,754
Warranty and after-sale costs	5,981	5,583
Other current liabilities	4,979	2,907
Total current liabilities	60,456	57,247
Other long-term liabilities	23,093	22,980
Deferred income taxes	2,428	876
Accrued non-pension postretirement benefits	5,721	5,711
Other accrued employee benefits	3,537	4,011
Commitments and contingencies (Note 6)
Shareholders’ equity:
Common stock	37,220	37,200
Capital in excess of par value	42,690	41,956
Reinvested earnings	292,785	285,879
Accumulated other comprehensive (loss) income	(201)	425
Less: Employee benefit stock	(154)	(154)
Treasury stock, at cost	(36,619)	(34,238)
Total shareholders’ equity	335,721	331,068
Total liabilities and shareholders’ equity	$ 430,956	$ 421,893

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net sales	$ 108,508	$ 104,881
Cost of sales	65,186	64,424
Gross margin	43,322	40,457
Selling, engineering and administration	27,307	26,130
Operating earnings	16,015	14,327
Interest expense, net	31	129
Other pension and postretirement costs	44	47
Earnings before income taxes	15,940	14,151
Provision for income taxes	4,086	3,327
Net earnings	$ 11,854	$ 10,824
Earnings per share:
Basic	$ 0.41	$ 0.37
Diluted	0.41	0.37
Dividends declared per common share	$ 0.17	$ 0.15
Shares used in computation of earnings per share:
Basic	29,042,158	29,028,964
Impact of dilutive securities	181,757	209,660
Diluted	29,223,915	29,238,624

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 11,854	$ 10,824
Other comprehensive income:
Foreign currency translation adjustments	(627)	(257)
Pension and postretirement benefits, net of tax	1	(12)
Comprehensive income	$ 11,228	$ 10,555

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net earnings	$ 11,854	$ 10,824
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation	2,975	2,978
Amortization	3,256	3,264
Deferred income taxes	392	(1)
Noncurrent employee benefits	88	117
Stock-based compensation expense	307	265
Changes in:
Receivables	1,385	(1,943)
Inventories	7,437	166
Payables	4,517	4,540
Prepaid expenses and other current assets	(609)	(2,101)
Other liabilities	(1,064)	(294)
Total adjustments	18,684	6,991
Net cash provided by operations	30,538	17,815
Investing activities:
Property, plant and equipment expenditures	(1,942)	(2,160)
Net cash used for investing activities	(1,942)	(2,160)
Financing activities:
Net decrease in short-term debt		(7,000)
Payment of contingent acquisition consideration		(1,000)
Dividends paid	(4,938)	(4,357)
Proceeds from exercise of stock options	478	471
Repurchase of treasury stock	(2,467)	(1,873)
Issuance of treasury stock	55	52
Net cash used for financing activities	(6,872)	(13,707)
Effect of foreign exchange rates on cash	(219)	(1)
Increase in cash and cash equivalents	21,505	1,947
Cash and cash equivalents – beginning of period	48,871	13,086
Cash and cash equivalents – end of period	$ 70,376	$ 15,033

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)	Employee benefit stock	Treasury stock (at cost)
Balance at beginning of period at Dec. 31, 2018	$ 303,503	$ 37,198		$ 38,082	$ 257,313	$ 580	$ (306)	$ (29,364)
Net earnings	10,824				10,824
Pension and postretirement benefits (net of tax effect)	(12)					(12)
Foreign currency translation	(257)					(257)
Cash dividends	(4,360)				(4,360)
Stock options exercised	471	2		397				72
Stock-based compensation	265			265
Purchase of common stock for treasury stock	(1,873)							(1,873)
Issuance of treasury stock	52			12				40
Balance at end of period at Mar. 31, 2019	308,613	37,200		38,756	263,777	311	(306)	(31,125)
Balance at beginning of period at Dec. 31, 2019	331,068	37,200		41,956	285,879	425	(154)	(34,238)
Net earnings	11,854				11,854
Pension and postretirement benefits (net of tax effect)	1					1
Foreign currency translation	(627)					(627)
Cash dividends	(4,948)				(4,948)
Stock options exercised	478	20		438				20
Stock-based compensation	307			307
Purchase of common stock for treasury stock	(2,467)							(2,467)
Issuance of treasury stock	55			(11)				66
Balance at end of period at Mar. 31, 2020	$ 335,721	$ 37,220		$ 42,690	$ 292,785	$ (201)	$ (154)	$ (36,619)
[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 ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement Of Stockholders Equity [Abstract]
Tax effect on employee benefit funded status adjustment	$ (1)	$ 4
Cash dividends (in dollars per share)	$ 0.17	$ 0.15
Issuance of treasury stock (in shares)	15	9

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019, results of operations, comprehensive income, cash flows and statements of shareholders’ equity for the three-month periods ended March 31, 2020 and 2019. 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.

Additional Financial Informatio

Additional Financial Information Disclosures	3 Months Ended
	Mar. 31, 2020
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, 2019 was derived from amounts included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 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 March 31, (In thousands) 2020 2019 Balance at beginning of period $ 5,583 $ 4,206 Net additions charged to earnings 1,161 465 Costs incurred (763 ) (353 ) Balance at end of period $ 5,981 $ 4,318

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2020
Compensation And Retirement Disclosure [Abstract]
Employee Benefit Plans	Note 3 Employee Benefit Plans The Company maintains supplemental non-qualified plans for certain officers and other key employees, and an Employee Savings and Stock Ownership Plan for the majority of the U.S. employees. 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 March 31, 2020 and 2019 based on December 31, 2019 and 2018 actuarial measurement dates, respectively: Defined pension plan benefits Other postretirement benefits (In thousands) 2020 2019 2020 2019 Service cost – benefits earned during the year $ 13 $ 37 $ 31 $ 29 Interest cost on projected benefit obligations 2 10 41 53 Amortization of net loss (benefit) 1 9 - (25 ) Net periodic benefit cost $ 16 $ 56 $ 72 $ 57 The Company disclosed in its financial statements for the year ended December 31, 2019 that it estimated it would pay $0.4 million in other postretirement benefits in 2020 based on actuarial estimates. As of March 31, 2020, $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. The amount of benefits paid in calendar year 2020 will not impact the expense for postretirement benefits for 2020.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Note 4 Accumulated Other Comprehensive Income (Loss) Components of and changes in accumulated other comprehensive income (loss) at March 31, 2020 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ 263 $ 162 $ 425 Other comprehensive (loss) before reclassifications - (627 ) (627 ) Amounts reclassified from accumulated other comprehensive income, net of tax of ($1) 1 - 1 Net current period other comprehensive income (loss), net of tax 1 (627 ) (626 ) Accumulated other comprehensive income (loss) $ 264 $ (465 ) $ (201 ) Details of reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2020 are immaterial. Components of and changes in accumulated other comprehensive income (loss) at March 31, 2019 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ 360 $ 220 $ 580 Other comprehensive income (loss) before reclassifications - (257 ) (257 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $4 (12 ) - (12 ) Net current period other comprehensive income (loss), net of tax (12 ) (257 ) (269 ) Accumulated other comprehensive (loss) income $ 348 $ (37 ) $ 311 Details of reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2019 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive income (loss) Amortization of pension and postretirement benefits items: Prior service benefit (1) $ (25 ) Actuarial loss (1) 9 Total before tax (16 ) Income tax 4 Amount reclassified out of accumulated other comprehensive loss $ (12 ) (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans”

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Acquisitions	Note 5 Acquisition In the first quarter of 2019, the Company made a payment of contingent acquisition consideration of $1.0 million related to the May 1, 2017 acquisition of 100% of the outstanding common stock of D-Flow Technology AB (“D-Flow”). There is an additional $0.9 million of contingent acquisition consideration outstanding related to the D-Flow acquisition that are anticipated to be made in the next twelve months which is recorded in Payables on the Company’s Consolidated Condensed Balance Sheet at March 31, 2020.

Contingencies, Litigation and C

Contingencies, Litigation and Commitments	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Contingencies, Litigation and Commitments	Note 6 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 2019 and the first quarter of 2020 were not material. The Company relies on single suppliers for most brass castings, certain resins 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 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	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 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, income tax expense and effective income tax rate are as follows: Three months ended March 31, (In thousands) 2020 2019 Earnings before income taxes $ 15,940 $ 14,151 Income tax expense 4,086 3,327 Effective income tax rate 25.6 % 23.5 %

Fair Value Measurements of Fina

Fair Value Measurements of Financial Instruments	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements of Financial Instruments	Note 8 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. 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 previously employed by the Company. The carrying amounts of these insurance policies approximate their fair value.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 9 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.

New Pronouncements

New Pronouncements	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
New Pronouncements	Note 10 New Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes” under ASC 740, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and modifies the existing guidance to enable more consistent application. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year with early adoption being permitted. The Company is in the process of evaluating the impacts of this guidance on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326),” which amends the accounting for credit losses on purchased financial assets and available-for-sale debt securities with credit deterioration. This ASU requires the measurement of all expected credit losses for financial assets, including accounts receivables, held at the reporting date based upon current conditions, historical experience and reasonable forecasts. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company adopted ASU No. 2016-13 on January 1, 2020 and noted no significant changes to the Company’s financial positions or results of operations.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition	Note 11 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 municipal water and flow instrumentation products, such as flow meters and radios, 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. In accordance with ASU No. 2016-10 “Revenue from Contracts with Customers” (“Topic 606”), 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 meets the disclosure objective in Topic 606 which is to depict 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 March 31, (In thousands) 2020 2019 Revenues: United States $ 94,492 $ 91,499 Foreign: Asia 1,548 1,452 Canada 3,136 3,497 Europe 4,775 5,352 Mexico 1,970 834 Middle East 1,537 1,584 Other 1,050 663 Total $ 108,508 $ 104,881 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended March 31, (In thousands) 2020 2019 Revenue recognized over time $ 4,804 $ 3,753 Revenue recognized at a point in time 103,704 101,128 Total $ 108,508 $ 104,881 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 opening and closing balances of the Company's receivables and contract liabilities are as follows: March 31, 2020 December 31, 2019 (In thousands) Receivables $ 59,164 $ 61,365 Contract liabilities 21,518 20,143 Contract liabilities are included in payables and other long-term liabilities on the Company’s Condensed Consolidated Balance Sheet. The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables in the three-month period ended March 31, 2020 and twelve-month period ended December 31, 2019. The difference between the opening and closing balances of the Company's contract liabilities was the result of a timing difference between the Company's performance and the customers' prepayments. As of March 31, 2020, the Company had certain contracts with unsatisfied performance obligations. For contracts recorded as contract liabilities, $21.5 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 $5.3 million in 2020, $2.0 million in each year from 2021 through 2025 and $6.2 million thereafter. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of measurement in Topic 606. 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. Revenue from products and services transferred to customers at a single point in time accounted for 95.6% and 96.4% of net sales for the three-month periods ended March 31, 2020 and 2019, respectively. The majority of the Company's revenue recognized at a point in time is for the sale of municipal 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. Revenue from services transferred to customers over time accounted for 4.4% and 3.6% of net sales for the three-month periods ended March 31, 2020 and 2019, respectively. 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.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 12 Leases T he 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 prepaid expenses and other current assets and 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 sheet. March 31, 2020 December 31, 2019 (In thousands) Right-of-use assets $ 7,692 $ 8,411 Lease liabilities 8,085 8,792 The Company ’ Three months ended March 31, 2020 2019 (In thousands) Operating lease expense $ 765 $ 801 Variable and short-term lease expense 57 72 Rent expense $ 822 $ 873 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 March 31, 2020 and December 31, 2019, the remaining lease term on the Company’s leases was 4.4 years and 4.5 years, respectively. As of March 31, 2020 and December 31, 2019, the discount rate was 5.0%. March 31, 2020 (In thousands) 2020 (remaining nine months) $ 2,073 2021 2,253 2022 1,278 2023 1,198 2024 1,165 Thereafter 1,015 Total future lease payments 8,982 Present value adjustment (897 ) Present value of future lease payments $ 8,085

New Pronouncement - (Policies)

New Pronouncement - (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
New Pronouncements	In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes” under ASC 740, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and modifies the existing guidance to enable more consistent application. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year with early adoption being permitted. The Company is in the process of evaluating the impacts of this guidance on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326),” which amends the accounting for credit losses on purchased financial assets and available-for-sale debt securities with credit deterioration. This ASU requires the measurement of all expected credit losses for financial assets, including accounts receivables, held at the reporting date based upon current conditions, historical experience and reasonable forecasts. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company adopted ASU No. 2016-13 on January 1, 2020 and noted no significant changes to the Company’s financial positions or results of operations.

Additional Financial Informat_2

Additional Financial Information Disclosures (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, (In thousands) 2020 2019 Balance at beginning of period $ 5,583 $ 4,206 Net additions charged to earnings 1,161 465 Costs incurred (763 ) (353 ) Balance at end of period $ 5,981 $ 4,318

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and 2019 based on December 31, 2019 and 2018 actuarial measurement dates, respectively: Defined pension plan benefits Other postretirement benefits (In thousands) 2020 2019 2020 2019 Service cost – benefits earned during the year $ 13 $ 37 $ 31 $ 29 Interest cost on projected benefit obligations 2 10 41 53 Amortization of net loss (benefit) 1 9 - (25 ) Net periodic benefit cost $ 16 $ 56 $ 72 $ 57

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Components of and Changes in Accumulated Other Comprehensive Income (Loss)	Components of and changes in accumulated other comprehensive income (loss) at March 31, 2020 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ 263 $ 162 $ 425 Other comprehensive (loss) before reclassifications - (627 ) (627 ) Amounts reclassified from accumulated other comprehensive income, net of tax of ($1) 1 - 1 Net current period other comprehensive income (loss), net of tax 1 (627 ) (626 ) Accumulated other comprehensive income (loss) $ 264 $ (465 ) $ (201 ) Components of and changes in accumulated other comprehensive income (loss) at March 31, 2019 are as follows: (In thousands) Unrecognized pension and postretirement benefits Foreign currency Total Balance at beginning of period $ 360 $ 220 $ 580 Other comprehensive income (loss) before reclassifications - (257 ) (257 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $4 (12 ) - (12 ) Net current period other comprehensive income (loss), net of tax (12 ) (257 ) (269 ) Accumulated other comprehensive (loss) income $ 348 $ (37 ) $ 311
Reclassifications Out of Accumulated Other Comprehensive Loss	Details of reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2019 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive income (loss) Amortization of pension and postretirement benefits items: Prior service benefit (1) $ (25 ) Actuarial loss (1) 9 Total before tax (16 ) Income tax 4 Amount reclassified out of accumulated other comprehensive loss $ (12 ) (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans”

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Earnings Before Incomes Taxes, Income Tax Expense and Effective Income Tax Rate	The Company’s earnings before incomes taxes, income tax expense and effective income tax rate are as follows: Three months ended March 31, (In thousands) 2020 2019 Earnings before income taxes $ 15,940 $ 14,151 Income tax expense 4,086 3,327 Effective income tax rate 25.6 % 23.5 %

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue From Contract With Customer [Abstract]
Disaggregation of Revenue	Information regarding revenues disaggregated by geographic area is as follows: Three months ended March 31, (In thousands) 2020 2019 Revenues: United States $ 94,492 $ 91,499 Foreign: Asia 1,548 1,452 Canada 3,136 3,497 Europe 4,775 5,352 Mexico 1,970 834 Middle East 1,537 1,584 Other 1,050 663 Total $ 108,508 $ 104,881 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended March 31, (In thousands) 2020 2019 Revenue recognized over time $ 4,804 $ 3,753 Revenue recognized at a point in time 103,704 101,128 Total $ 108,508 $ 104,881
Contract with Customer, Liability and Receivables	The opening and closing balances of the Company's receivables and contract liabilities are as follows: March 31, 2020 December 31, 2019 (In thousands) Receivables $ 59,164 $ 61,365 Contract liabilities 21,518 20,143

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
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: March 31, 2020 December 31, 2019 (In thousands) Right-of-use assets $ 7,692 $ 8,411 Lease liabilities 8,085 8,792
Schedule of Rent Expenses	The Company’s rent expense is as follows: Three months ended March 31, 2020 2019 (In thousands) Operating lease expense $ 765 $ 801 Variable and short-term lease expense 57 72 Rent expense $ 822 $ 873
Schedule of Future Minimum Lease Payments to be Paid under Operating Leases	The future minimum lease payments to be paid under operating leases are as follows: March 31, 2020 (In thousands) 2020 (remaining nine months) $ 2,073 2021 2,253 2022 1,278 2023 1,198 2024 1,165 Thereafter 1,015 Total future lease payments 8,982 Present value adjustment (897 ) Present value of future lease payments $ 8,085

Additional Financial Informat_3

Additional Financial Information Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Changes in warranty and after-sale costs reserve
Balance at beginning of period	$ 5,583	$ 4,206
Net additions charged to earnings	1,161	465
Costs incurred	(763)	(353)
Balance at end of period	$ 5,981	$ 4,318

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined pension plan benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost – benefits earned during the year	$ 13	$ 37
Interest cost on projected benefit obligations	2	10
Amortization of net loss (benefit)	1	9
Net periodic benefit cost	16	56
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost – benefits earned during the year	31	29
Interest cost on projected benefit obligations	41	53
Amortization of net loss (benefit)	0	(25)
Net periodic benefit cost	$ 72	$ 57

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) - Other postretirement benefits $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Defined Benefit Plan Disclosure [Line Items]
Estimated other postretirement benefits to be paid in 2020	$ 400
Benefits paid	100
Settlement expense	$ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Components of and Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, tax	$ (1)	$ 4,000
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	331,068	303,503
Other comprehensive income (loss) before reclassifications	(627)	(257)
Amounts reclassified from accumulated other comprehensive income, net of tax	1	(12)
Net current period other comprehensive income (loss), net of tax	(626)	(269)
Balance at end of period	335,721	308,613
Unrecognized pension and postretirement benefits
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	263	360
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income, net of tax	1	(12)
Net current period other comprehensive income (loss), net of tax	1	(12)
Balance at end of period	264	348
Foreign currency
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	162	220
Other comprehensive income (loss) before reclassifications	(627)	(257)
Amounts reclassified from accumulated other comprehensive income, net of tax	0	0
Net current period other comprehensive income (loss), net of tax	(627)	(257)
Balance at end of period	(465)	(37)
Accumulated other comprehensive income (loss)
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	425	580
Other comprehensive income (loss) before reclassifications	(627)
Balance at end of period	$ (201)	$ 311

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Amortization of pension and postretirement benefits items:
Prior service benefit/cost	[1]		$ (25)
Actuarial loss (1)	[1]		9
Total before tax			(16)
Income tax			4
Amount reclassified out of accumulated other comprehensive loss		$ 1	$ (12)
[1]	These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans”

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020
Business Acquisition
Payment of contingent acquisition consideration	$ 1,000
D-Flow
Business Acquisition
Payment of contingent acquisition consideration	$ 1,000
Outstanding common stock acquired (as a percent)		100.00%
Contingent payments		$ 900

Income Taxes - Schedule of Earn

Income Taxes - Schedule of Earnings Before Incomes Taxes, Income Tax Expense and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Earnings before income taxes	$ 15,940	$ 14,151
Income tax expense	$ 4,086	$ 3,327
Effective income tax rate	25.60%	23.50%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 108,508	$ 104,881
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Revenues	4,804	3,753
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Revenues	103,704	101,128
United States
Disaggregation of Revenue [Line Items]
Revenues	94,492	91,499
Asia
Disaggregation of Revenue [Line Items]
Revenues	1,548	1,452
Canada
Disaggregation of Revenue [Line Items]
Revenues	3,136	3,497
Europe
Disaggregation of Revenue [Line Items]
Revenues	4,775	5,352
Mexico
Disaggregation of Revenue [Line Items]
Revenues	1,970	834
Middle East
Disaggregation of Revenue [Line Items]
Revenues	1,537	1,584
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 1,050	$ 663

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Receivables	$ 59,164	$ 61,365
Contract liabilities	$ 21,518	$ 20,143

Revenue Recognition - Narrative

Revenue Recognition - Narrative 1 (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue From Contract With Customer [Abstract]
Revenue, remaining performance obligation	$ 21.5

Revenue Recognition - Narrati_2

Revenue Recognition - Narrative 1 (Details 1) $ in Millions	Mar. 31, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 21.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 5.3
Expected timing of performance obligation satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 2
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 2
Expected timing of performance obligation satisfaction, period	1 year
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	$ 2
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	$ 2
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	$ 2
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	$ 6.2
Expected timing of performance obligation satisfaction, period	1 year

Revenue Recognition - Narrati_3

Revenue Recognition - Narrative 2 (Details) - Consolidated Sales - Product Concentration Risk	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue recognized at a point in time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	95.60%	96.40%
Revenue recognized over time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	4.40%	3.60%

Leases - Narrative (Details)

Leases - Narrative (Details)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating leases, practical expedient	true
Operating leases, remaining lease term	4 years 4 months 24 days	4 years 6 months
Operating leases, discount rate	5.00%	5.00%

Leases - Schedule of Right-of-U

Leases - Schedule of Right-of-Use Assets and the Corresponding Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Right-of-use assets	$ 7,692	$ 8,411
Lease liabilities	$ 8,085	$ 8,792

Leases - Schedule of Rent Expen

Leases - Schedule of Rent Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease expense	$ 765	$ 801
Variable and short-term lease expense	57	72
Rent expense	$ 822	$ 873

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments to be Paid under Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2020 (remaining nine months)	$ 2,073
2021	2,253
2022	1,278
2023	1,198
2024	1,165
Thereafter	1,015
Total future lease payments	8,982
Present value adjustment	(897)
Present value of future lease payments	$ 8,085	$ 8,792