Badger Meter (BMI) 10-Q 30 Jul 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 13, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
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		29,117,539
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, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 85,201	$ 48,871
Receivables	54,021	61,365
Inventories:
Finished goods	20,093	22,946
Work in process	16,375	17,728
Raw materials	40,378	41,274
Total inventories	76,846	81,948
Prepaid expenses and other current assets	7,339	7,910
Total current assets	223,407	200,094
Property, plant and equipment, at cost	212,846	209,825
Less accumulated depreciation	(129,656)	(124,064)
Net property, plant and equipment	83,190	85,761
Intangible assets, at cost less accumulated amortization	44,638	48,163
Other assets	15,022	15,875
Deferred income taxes	2,018	742
Goodwill	71,258	71,258
Total assets	439,533	421,893
Current liabilities:
Short-term debt	4,480	4,480
Payables	35,449	31,523
Accrued compensation and employee benefits	9,678	12,754
Warranty and after-sale costs	6,421	5,583
Other current liabilities	6,673	2,907
Total current liabilities	62,701	57,247
Other long-term liabilities	23,639	22,980
Deferred income taxes	2,555	876
Accrued non-pension postretirement benefits	5,643	5,711
Other accrued employee benefits	3,852	4,011
Commitments and contingencies (Note 6)
Shareholders’ equity:
Common stock	37,220	37,200
Capital in excess of par value	43,456	41,956
Reinvested earnings	297,370	285,879
Accumulated other comprehensive income	245	425
Less: Employee benefit stock	(154)	(154)
Treasury stock, at cost	(36,994)	(34,238)
Total shareholders’ equity	341,143	331,068
Total liabilities and shareholders’ equity	$ 439,533	$ 421,893

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 91,119	$ 103,542	$ 199,627	$ 208,423
Cost of sales	55,269	63,266	120,455	127,690
Gross margin	35,850	40,276	79,172	80,733
Selling, engineering and administration	23,186	25,243	50,493	51,373
Operating earnings	12,664	15,033	28,679	29,360
Interest expense, net	32	85	63	214
Other pension and postretirement costs	44	35	88	82
Earnings before income taxes	12,588	14,913	28,528	29,064
Provision for income taxes	3,054	3,555	7,140	6,882
Net earnings	$ 9,534	$ 11,358	$ 21,388	$ 22,182
Earnings per share:
Basic	$ 0.33	$ 0.39	$ 0.74	$ 0.76
Diluted	0.33	0.39	0.73	0.76
Dividends declared per common share	$ 0.17	$ 0.15	$ 0.34	$ 0.30
Shares used in computation of earnings per share:
Basic	29,047,297	29,027,887	29,046,277	29,024,543
Impact of dilutive securities	218,422	183,646	200,090	200,009
Diluted	29,265,719	29,211,533	29,246,367	29,224,552

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 9,534	$ 11,358	$ 21,388	$ 22,182
Other comprehensive income:
Foreign currency translation adjustments	445	395	(182)	137
Pension and postretirement benefits, net of tax	1	360	2	349
Comprehensive income	$ 9,980	$ 12,113	$ 21,208	$ 22,668

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net earnings	$ 21,388	$ 22,182
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation	5,978	6,063
Amortization	6,483	6,297
Deferred income taxes	392	(15)
Noncurrent employee benefits	457	(267)
Stock-based compensation expense	705	554
Changes in:
Receivables	6,638	6,028
Inventories	5,070	(2,565)
Payables	3,886	9,141
Prepaid expenses and other assets	(1,600)	(3,946)
Other current liabilities	2,889	(2,569)
Total adjustments	30,898	18,721
Net cash provided by operations	52,286	40,903
Investing activities:
Property, plant and equipment expenditures	(3,579)	(4,466)
Net cash used for investing activities	(3,579)	(4,466)
Financing activities:
Net decrease in short-term debt		(13,500)
Payment of contingent acquisition consideration		(1,650)
Dividends paid	(9,878)	(8,717)
Proceeds from exercise of stock options	478	748
Repurchase of treasury stock	(2,873)	(2,837)
Issuance of treasury stock	93	97
Net cash used for financing activities	(12,180)	(25,859)
Effect of foreign exchange rates on cash	(197)	230
Increase in cash and cash equivalents	36,330	10,808
Cash and cash equivalents – beginning of period	48,871	13,086
Cash and cash equivalents – end of period	$ 85,201	$ 23,894

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	22,182				22,182
Pension and postretirement benefits (net of tax effect)	349					349
Foreign currency translation	137					137
Cash dividends	(8,723)				(8,723)
Stock options exercised	748	2		640				106
Stock-based compensation	554			554
Purchase of common stock for treasury stock	(2,837)							(2,837)
Issuance of treasury stock	539			470				69
Balance at end of period at Jun. 30, 2019	316,452	37,200		39,746	270,772	1,066	(306)	(32,026)
Balance at beginning of period at Mar. 31, 2019	308,613	37,200		38,756	263,777	311	(306)	(31,125)
Net earnings	11,358				11,358
Pension and postretirement benefits (net of tax effect)	360					360
Foreign currency translation	395					395
Cash dividends	(4,363)				(4,363)
Stock options exercised	277			243				34
Stock-based compensation	289			289
Purchase of common stock for treasury stock	(964)							(964)
Issuance of treasury stock	487			458				29
Balance at end of period at Jun. 30, 2019	316,452	37,200		39,746	270,772	1,066	(306)	(32,026)
Balance at beginning of period at Dec. 31, 2019	331,068	37,200		41,956	285,879	425	(154)	(34,238)
Net earnings	21,388				21,388
Pension and postretirement benefits (net of tax effect)	2					2
Foreign currency translation	(182)					(182)
Cash dividends	(9,897)				(9,897)
Stock options exercised	478	20		438				20
Stock-based compensation	705			705
Purchase of common stock for treasury stock	(2,873)							(2,873)
Issuance of treasury stock	454			357				97
Balance at end of period at Jun. 30, 2020	341,143	37,220		43,456	297,370	245	(154)	(36,994)
Balance at beginning of period at Mar. 31, 2020	335,721	37,220		42,690	292,785	(201)	(154)	(36,619)
Net earnings	9,534				9,534
Pension and postretirement benefits (net of tax effect)	1					1
Foreign currency translation	445					445
Cash dividends	(4,949)				(4,949)
Stock-based compensation	398			398
Purchase of common stock for treasury stock	(406)							(406)
Issuance of treasury stock	399			368				31
Balance at end of period at Jun. 30, 2020	$ 341,143	$ 37,220		$ 43,456	$ 297,370	$ 245	$ (154)	$ (36,994)
[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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Stockholders Equity [Abstract]
Tax effect on employee benefit funded status adjustment	$ (1)	$ (141)	$ (1)	$ (137)
Cash dividends (in dollars per share)	$ 0.17	$ 0.15	$ 0.34	$ 0.30
Issuance of treasury stock (in shares)	6	19	21	28

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 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 June 30, 2020 and December 31, 2019, results of operations, comprehensive income, cash flows and statements of shareholders’ equity for the three and six-month periods ended June 30, 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	6 Months Ended
	Jun. 30, 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 . 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 June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Balance at beginning of period $ 5,981 $ 4,318 $ 5,583 $ 4,206 Net additions charged to earnings 1,232 1,816 2,393 2,281 Costs incurred (792 ) (755 ) (1,555 ) (1,108 ) Balance at end of period $ 6,421 $ 5,379 $ 6,421 $ 5,379

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 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 (income) for the three months ended June 30, 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 $ 23 Interest cost on projected benefit obligations 2 9 41 51 Amortization of net loss (benefit) 1 9 - (34 ) Net periodic benefit cost $ 16 $ 55 $ 72 $ 40 The following table sets forth the components of net periodic benefit cost (income) for the six months ended June 30, 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 $ 26 $ 74 $ 62 $ 52 Interest cost on projected benefit obligations 4 18 82 105 Amortization of net loss (benefit) 2 18 - (59 ) Net periodic benefit cost $ 32 $ 110 $ 144 $ 98 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 June 30, 2020, $0.2 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)	6 Months Ended
	Jun. 30, 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 June 30, 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 - (182 ) (182 ) Amounts reclassified from accumulated other comprehensive income, net of tax of ($1) 2 - 2 Net current period other comprehensive income (loss), net of tax 2 (182 ) (180 ) Accumulated other comprehensive income (loss) $ 265 $ (20 ) $ 245 Details of reclassifications out of accumulated other comprehensive income (loss) during the six months ended June 30, 2020 are immaterial. Components of and changes in accumulated other comprehensive income (loss) at June 30, 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 before reclassifications - 137 137 Amounts reclassified from accumulated other comprehensive income, net of tax of ($137) 349 - 349 Net current period other comprehensive income, net of tax 349 137 486 Accumulated other comprehensive income $ 709 $ 357 $ 1,066 Details of reclassifications out of accumulated other comprehensive income (loss) during the six months ended June 30, 2019 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive income (loss) Amortization of pension and postretirement benefits items: Actuarial loss (1) $ (40 ) Settlement expense (2) 526 Total before tax 486 Income tax (137 ) Amount reclassified out of accumulated other comprehensive income $ 349 (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans” (2) This accumulated other comprehensive income (loss) component resulted from an international pension plan settlement.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Acquisitions	Note 5 Acquisitions 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 $1.0 million of contingent acquisition consideration outstanding related to the D-Flow acquisition that is anticipated to be made in the next twelve months which is recorded in Payables on the Company’s Consolidated Condensed Balance Sheet at June 30, 2020. In the second quarter of 2019, the Company made a payment of contingent acquisition consideration of $0.7 million related to the April 2, 2018 acquisition of 100% of the outstanding common stock of Innovative Metering Solutions, Inc. (“IMS”).

Contingencies, Litigation and C

Contingencies, Litigation and Commitments	6 Months Ended
	Jun. 30, 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 two quarters 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	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Earnings before income taxes $ 12,588 $ 14,913 $ 28,528 $ 29,064 Income tax expense 3,054 3,555 7,140 6,882 Effective income tax rate 24.3 % 23.8 % 25.0 % 23.7 %

Fair Value Measurements of Fina

Fair Value Measurements of Financial Instruments	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Revenues: United States $ 80,754 $ 90,258 $ 175,246 $ 181,757 Foreign: Asia 1,437 2,287 2,985 3,739 Canada 2,125 3,821 5,261 7,318 Europe 3,293 4,449 8,068 9,801 Mexico 1,025 1,003 2,995 1,837 Middle East 2,218 1,481 3,755 3,065 Other 267 243 1,317 906 Total $ 91,119 $ 103,542 $ 199,627 $ 208,423 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Revenue recognized over time $ 5,177 $ 4,003 $ 9,981 $ 7,756 Revenue recognized at a point in time 85,942 99,539 189,646 200,667 Total $ 91,119 $ 103,542 $ 199,627 $ 208,423 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, 2020 December 31, 2019 (In thousands) Receivables $ 54,021 $ 61,365 Contract liabilities 22,056 20,143 Contract liabilities are included in payables and other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets. The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables in the three and six-month periods ended June 30, 2020 and twelve-month period ended December 31, 2019. As of June 30, 2020, the Company had certain contracts with unsatisfied performance obligations. For contracts recorded as contract liabilities, $22.1 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 $5.0 million in 2020, $2.0 million in each year from 2021 through 2025 and $7.1 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 94.3% and 96.1% of net sales for the three-month periods ended June 30, 2020 and 2019, respectively. Revenue from products and services transferred to customers at a single point in time accounted for 95.0% and 96.3% of net sales for the six-month periods ended June 30, 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 du ring shipping . Revenue from services transferred to customers over time accounted for 5.7% and 3.9% of net sales for the three-month periods ended June 30, 2020 and 2019, respectively. Revenue from services transferred to customers over time accounted for 5.0% and 3.7% of net sales for the six-month periods ended June 30, 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	6 Months Ended
	Jun. 30, 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 Sheets. June 30, 2020 December 31, 2019 (In thousands) Right-of-use assets $ 7,144 $ 8,411 Lease liabilities 7,528 8,792 The Company ’ Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands) Operating lease expense $ 754 $ 759 $ 1,519 $ 1,560 Variable and short-term lease expense 39 121 96 193 Rent expense $ 793 $ 880 $ 1,615 $ 1,753 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, 2020 and December 31, 2019, the remaining lease term on the Company’s leases was 4.3 years and 4.5 years, respectively. As of June 30, 2020 and December 31, 2019, the discount rate was 5.0%. June 30, 2020 (In thousands) 2020 (remaining six months) $ 1,322 2021 2,336 2022 1,298 2023 1,204 2024 1,170 Thereafter 1,018 Total future lease payments 8,348 Present value adjustment (820 ) Present value of future lease payments $ 7,528

New Pronouncement - (Policies)

New Pronouncement - (Policies)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Balance at beginning of period $ 5,981 $ 4,318 $ 5,583 $ 4,206 Net additions charged to earnings 1,232 1,816 2,393 2,281 Costs incurred (792 ) (755 ) (1,555 ) (1,108 ) Balance at end of period $ 6,421 $ 5,379 $ 6,421 $ 5,379

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2020
Compensation And Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	The following table sets forth the components of net periodic benefit cost (income) for the three months ended June 30, 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 $ 23 Interest cost on projected benefit obligations 2 9 41 51 Amortization of net loss (benefit) 1 9 - (34 ) Net periodic benefit cost $ 16 $ 55 $ 72 $ 40 The following table sets forth the components of net periodic benefit cost (income) for the six months ended June 30, 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 $ 26 $ 74 $ 62 $ 52 Interest cost on projected benefit obligations 4 18 82 105 Amortization of net loss (benefit) 2 18 - (59 ) Net periodic benefit cost $ 32 $ 110 $ 144 $ 98

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Components of and Changes in Accumulated Other Comprehensive Income (Loss)	Components of and changes in accumulated other comprehensive income (loss) at June 30, 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 - (182 ) (182 ) Amounts reclassified from accumulated other comprehensive income, net of tax of ($1) 2 - 2 Net current period other comprehensive income (loss), net of tax 2 (182 ) (180 ) Accumulated other comprehensive income (loss) $ 265 $ (20 ) $ 245 Components of and changes in accumulated other comprehensive income (loss) at June 30, 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 before reclassifications - 137 137 Amounts reclassified from accumulated other comprehensive income, net of tax of ($137) 349 - 349 Net current period other comprehensive income, net of tax 349 137 486 Accumulated other comprehensive income $ 709 $ 357 $ 1,066
Reclassifications Out of Accumulated Other Comprehensive Loss	Details of reclassifications out of accumulated other comprehensive income (loss) during the six months ended June 30, 2019 are as follows: (In thousands) Amount reclassified from accumulated other comprehensive income (loss) Amortization of pension and postretirement benefits items: Actuarial loss (1) $ (40 ) Settlement expense (2) 526 Total before tax 486 Income tax (137 ) Amount reclassified out of accumulated other comprehensive income $ 349 (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans” (2) This accumulated other comprehensive income (loss) component resulted from an international pension plan settlement.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Earnings before income taxes $ 12,588 $ 14,913 $ 28,528 $ 29,064 Income tax expense 3,054 3,555 7,140 6,882 Effective income tax rate 24.3 % 23.8 % 25.0 % 23.7 %

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Disaggregation of Revenue	Information regarding revenues disaggregated by geographic area is as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Revenues: United States $ 80,754 $ 90,258 $ 175,246 $ 181,757 Foreign: Asia 1,437 2,287 2,985 3,739 Canada 2,125 3,821 5,261 7,318 Europe 3,293 4,449 8,068 9,801 Mexico 1,025 1,003 2,995 1,837 Middle East 2,218 1,481 3,755 3,065 Other 267 243 1,317 906 Total $ 91,119 $ 103,542 $ 199,627 $ 208,423 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2020 2019 2020 2019 Revenue recognized over time $ 5,177 $ 4,003 $ 9,981 $ 7,756 Revenue recognized at a point in time 85,942 99,539 189,646 200,667 Total $ 91,119 $ 103,542 $ 199,627 $ 208,423
Contract with Customer, Liability and Receivables	The closing balances of the Company's receivables and contract liabilities are as follows: June 30, 2020 December 31, 2019 (In thousands) Receivables $ 54,021 $ 61,365 Contract liabilities 22,056 20,143

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 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: June 30, 2020 December 31, 2019 (In thousands) Right-of-use assets $ 7,144 $ 8,411 Lease liabilities 7,528 8,792
Schedule of Rent Expenses	The Company’s rent expense is as follows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands) Operating lease expense $ 754 $ 759 $ 1,519 $ 1,560 Variable and short-term lease expense 39 121 96 193 Rent expense $ 793 $ 880 $ 1,615 $ 1,753
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: June 30, 2020 (In thousands) 2020 (remaining six months) $ 1,322 2021 2,336 2022 1,298 2023 1,204 2024 1,170 Thereafter 1,018 Total future lease payments 8,348 Present value adjustment (820 ) Present value of future lease payments $ 7,528

Additional Financial Informat_3

Additional Financial Information Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Changes in warranty and after-sale costs reserve
Balance at beginning of period	$ 5,981	$ 4,318	$ 5,583	$ 4,206
Net additions charged to earnings	1,232	1,816	2,393	2,281
Costs incurred	(792)	(755)	(1,555)	(1,108)
Balance at end of period	$ 6,421	$ 5,379	$ 6,421	$ 5,379

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined pension plan benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost – benefits earned during the year	$ 13	$ 37	$ 26	$ 74
Interest cost on projected benefit obligations	2	9	4	18
Amortization of net loss (benefit)	1	9	2	18
Net periodic benefit cost	16	55	32	110
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost – benefits earned during the year	31	23	62	52
Interest cost on projected benefit obligations	41	51	82	105
Amortization of net loss (benefit)	0	(34)	0	(59)
Net periodic benefit cost	$ 72	$ 40	$ 144	$ 98

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) - Other postretirement benefits $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Defined Benefit Plan Disclosure [Line Items]
Estimated other postretirement benefits to be paid in 2020	$ 400
Benefits paid	200
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	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, tax	$ (1)	$ (137,000)
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	331,068	303,503
Other comprehensive income (loss) before reclassifications	(182)	137
Amounts reclassified from accumulated other comprehensive income, net of tax	2	349
Net current period other comprehensive income (loss), net of tax	(180)	486
Balance at end of period	341,143	316,452
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	2	349
Net current period other comprehensive income (loss), net of tax	2	349
Balance at end of period	265	709
Foreign currency
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	162	220
Other comprehensive income (loss) before reclassifications	(182)	137
Amounts reclassified from accumulated other comprehensive income, net of tax	0	0
Net current period other comprehensive income (loss), net of tax	(182)	137
Balance at end of period	(20)	357
Accumulated other comprehensive income (loss)
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	425	580
Other comprehensive income (loss) before reclassifications	(182)
Balance at end of period	$ 245	$ 1,066

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019
Amortization of pension and postretirement benefits items:
Actuarial loss (1)	[1]		$ (40)
Settlement expense (2)	[2]		526
Total before tax			486
Income tax			(137)
Amount reclassified out of accumulated other comprehensive income		$ 2	$ 349
[1]	These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost in Note 3 “Employee Benefit Plans”
[2]	This accumulated other comprehensive income (loss) component resulted from an international pension plan settlement.

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019	Jun. 30, 2020
Business Acquisition
Payment of contingent acquisition consideration			$ 1,650
D-Flow
Business Acquisition
Payment of contingent acquisition consideration		$ 1,000
Outstanding common stock acquired (as a percent)				100.00%
Contingent payments				$ 1,000
IMS
Business Acquisition
Payment of contingent acquisition consideration	$ 700
Outstanding common stock acquired (as a percent)				100.00%

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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Earnings before income taxes	$ 12,588	$ 14,913	$ 28,528	$ 29,064
Income tax expense	$ 3,054	$ 3,555	$ 7,140	$ 6,882
Effective income tax rate	24.30%	23.80%	25.00%	23.70%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 91,119	$ 103,542	$ 199,627	$ 208,423
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Revenues	5,177	4,003	9,981	7,756
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Revenues	85,942	99,539	189,646	200,667
United States
Disaggregation of Revenue [Line Items]
Revenues	80,754	90,258	175,246	181,757
Asia
Disaggregation of Revenue [Line Items]
Revenues	1,437	2,287	2,985	3,739
Canada
Disaggregation of Revenue [Line Items]
Revenues	2,125	3,821	5,261	7,318
Europe
Disaggregation of Revenue [Line Items]
Revenues	3,293	4,449	8,068	9,801
Mexico
Disaggregation of Revenue [Line Items]
Revenues	1,025	1,003	2,995	1,837
Middle East
Disaggregation of Revenue [Line Items]
Revenues	2,218	1,481	3,755	3,065
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 267	$ 243	$ 1,317	$ 906

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Receivables	$ 54,021	$ 61,365
Contract liabilities	$ 22,056	$ 20,143

Revenue Recognition - Narrative

Revenue Recognition - Narrative 1 (Details) $ in Millions	Jun. 30, 2020USD ($)
Revenue From Contract With Customer [Abstract]
Revenue, remaining performance obligation	$ 22.1

Revenue Recognition - Narrati_2

Revenue Recognition - Narrative 1 (Details 1) $ in Millions	Jun. 30, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 22.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 5
Expected timing of performance obligation satisfaction, period	6 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	$ 7.1
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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue recognized at a point in time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	94.30%	96.10%	95.00%	96.30%
Revenue recognized over time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	5.70%	3.90%	5.00%	3.70%

Leases - Narrative (Details)

Leases - Narrative (Details)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Operating leases, practical expedient	true
Operating leases, remaining lease term	4 years 3 months 18 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	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Right-of-use assets	$ 7,144	$ 8,411
Lease liabilities	$ 7,528	$ 8,792

Leases - Schedule of Rent Expen

Leases - Schedule of Rent Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease expense	$ 754	$ 759	$ 1,519	$ 1,560
Variable and short-term lease expense	39	121	96	193
Rent expense	$ 793	$ 880	$ 1,615	$ 1,753

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments to be Paid under Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
2020 (remaining six months)	$ 1,322
2021	2,336
2022	1,298
2023	1,204
2024	1,170
Thereafter	1,018
Total future lease payments	8,348
Present value adjustment	(820)
Present value of future lease payments	$ 7,528	$ 8,792