10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

Commission File Number: 1-4639

CTS CORPORATION

(Exact name of registrant as specified in its charter)

IN	35-0225010
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)

4925 Indiana Avenue
Lisle IL	60532
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (630) 577-8800

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, without par value	CTS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of July 21, 2022: 31,865,314.

CTS CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS

			Page
PART I. FINANCIAL INFORMATION
	Item 1.	Financial Statements	3
		Condensed Consolidated Statements of Earnings (Unaudited) For the Three and Six Months Ended June 30, 2022 and June 30, 2021	3
		Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) For the Three and Six Months Ended June 30, 2022 and June 30, 2021	4
		Condensed Consolidated Balance Sheets As of June 30, 2022 (Unaudited) and December 31, 2021	5
		Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, 2022 and June 30, 2021	6
		Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) For the Three and Six Months Ended June 30, 2022 and June 30, 2021	7
		Notes to Condensed Consolidated Financial Statements ‑ (Unaudited)	9
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32
	Item 4.	Controls and Procedures	33
PART II. OTHER INFORMATION
	Item 1.	Legal Proceedings	33
	Item 1A.	Risk Factors	33
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
	Item 6.	Exhibits	35
SIGNATURES			36

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED

(In thousands of dollars, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Net sales	$	144,982		$	129,585		$	292,677		$	258,012
Cost of goods sold		93,134			81,889			186,489			167,725
Gross margin		51,848			47,696			106,188			90,287
Selling, general and administrative expenses		22,238			20,937			44,026			39,262
Research and development expenses		6,294			6,029			12,488			11,716
Restructuring charges		630			151			942			232
Operating earnings		22,686			20,579			48,732			39,077
Other (expense) income:
Interest expense		(602	)		(508	)		(1,148	)		(1,063	)
Interest income		263			257			443			459
Other expense, net		(5,425	)		(20,929	)		(5,359	)		(24,285	)
Total other expense, net		(5,764	)		(21,180	)		(6,064	)		(24,889	)
Earnings (loss) before income taxes		16,922			(601	)		42,668			14,188
Income tax expense (benefit)		4,324			(1,476	)		9,831			1,323
Net earnings	$	12,598		$	875		$	32,837		$	12,865
Earnings per share:
Basic	$	0.39		$	0.03		$	1.02		$	0.40
Diluted	$	0.39		$	0.03		$	1.02		$	0.39
Basic weighted – average common shares outstanding:		32,039			32,397			32,096			32,358
Effect of dilutive securities		204			229			218			259
Diluted weighted – average common shares outstanding:		32,243			32,626			32,314			32,617
Cash dividends declared per share	$	0.04		$	0.04		$	0.08		$	0.08

See notes to unaudited condensed consolidated financial statements.

3

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS ‑ UNAUDITED

(In thousands of dollars)

	Three Months Ended					Six Months Ended
	June 30,			June 30,		June 30,			June 30,
	2022			2021		2022			2021
Net earnings	$	12,598		$	875	$	32,837		$	12,865
Other comprehensive earnings (loss):
Changes in fair market value of derivatives, net of tax		705			268		1,940			392
Changes in unrealized pension cost, net of tax		2,082			17,024		2,176			18,446
Cumulative translation adjustment, net of tax		(2,012	)		1		(2,261	)		13
Other comprehensive earnings	$	775		$	17,293	$	1,855		$	18,851
Comprehensive earnings	$	13,373		$	18,168	$	34,692		$	31,716

See notes to unaudited condensed consolidated financial statements.

4

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of dollars)

	(Unaudited)
	June 30,			December 31,
	2022			2021
ASSETS
Current Assets
Cash and cash equivalents	$	98,739		$	141,465
Accounts receivable, net		98,949			82,191
Inventories, net		64,158			49,506
Other current assets		16,704			15,927
Total current assets		278,550			289,089
Property, plant and equipment, net		99,637			96,876
Operating lease assets, net		22,452			21,594
Other Assets
Prepaid pension asset		33,860			49,382
Goodwill		139,617			109,798
Other intangible assets, net		112,824			69,888
Deferred income taxes		23,401			25,415
Other		19,293			2,420
Total other assets		328,995			256,903
Total Assets	$	729,634		$	664,462
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	60,662		$	55,537
Operating lease obligations		3,612			3,393
Accrued payroll and benefits		14,931			18,418
Accrued expenses and other liabilities		36,171			36,718
Total current liabilities		115,376			114,066
Long-term debt		91,027			50,000
Long-term operating lease obligations		21,851			21,354
Long-term pension obligations		6,361			6,886
Deferred income taxes		6,174			5,894
Other long-term obligations		2,898			2,684
Total Liabilities		243,687			200,884
Commitments and Contingencies (Note 11)
Shareholders’ Equity
Common stock		316,502			314,620
Additional contributed capital		42,585			42,549
Retained earnings		522,506			492,242
Accumulated other comprehensive loss		(2,670	)		(4,525	)
Total shareholders’ equity before treasury stock		878,923			844,886
Treasury stock		(392,976	)		(381,308	)
Total shareholders’ equity		485,947			463,578
Total Liabilities and Shareholders’ Equity	$	729,634		$	664,462

See notes to unaudited condensed consolidated financial statements.

5

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ‑ UNAUDITED

(In thousands of dollars)

	Six Months Ended
	June 30,			June 30,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	32,837		$	12,865
Adjustments to reconcile net earnings to net cash provided by operating    activities:
Depreciation and amortization		13,765			13,512
Non-cash inventory charges		1,113			—
Pension and other post-retirement plan expense		182			23,823
Stock-based compensation		3,566			3,122
Deferred income taxes		1,277			(4,875	)
Gain on foreign currency hedges, net of cash		(12	)		(26	)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(12,861	)		316
Inventories		(7,177	)		(2,994	)
Operating lease assets		1,515			131
Other assets		2,513			(1,440	)
Accounts payable		5,087			(3,433	)
Accrued payroll and benefits		(4,458	)		1,145
Operating lease liabilities		(1,658	)		(143	)
Accrued expenses and other liabilities		93			(3,028	)
Pension and other post-retirement plans		(430	)		(190	)
Net cash provided by operating activities		35,352			38,785
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(6,991	)		(3,970	)
Payments for acquisitions, net of cash acquired		(96,528	)		(255	)
Net cash used in investing activities		(103,519	)		(4,225	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt		(300,000	)		(430,300	)
Proceeds from borrowings of long-term debt		341,027			425,700
Purchase of treasury stock		(11,668	)		—
Dividends paid		(2,576	)		(2,585	)
Payments of contingent consideration		(900	)		(350	)
Taxes paid on behalf of equity award participants		(1,491	)		(1,480	)
Net cash provided by (used in) financing activities		24,392			(9,015	)
Effect of exchange rate changes on cash and cash equivalents		1,049			79
Net (decrease) increase in cash and cash equivalents		(42,726	)		25,624
Cash and cash equivalents at beginning of period		141,465			91,773
Cash and cash equivalents at end of period	$	98,739		$	117,397
Supplemental cash flow information:
Cash paid for interest	$	969		$	716
Cash paid for income taxes, net	$	7,606		$	7,516
Non-cash financing and investing activities:
Capital expenditures incurred but not paid	$	1,397		$	1,288

See notes to unaudited condensed consolidated financial statements.

6

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED

(in thousands of dollars)

The following summarizes the changes in total equity for the three and six months ended June 30, 2022:

	Common Stock		Additional Contributed Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total
Balances at December 31, 2021	$	314,620	$	42,549		$	492,242		$	(4,525	)	$	(381,308	)	$	463,578
Net earnings		—		—			20,239			—			—			20,239
Changes in fair market value of derivatives, net of tax		—		—			—			1,235			—			1,235
Changes in unrealized pension cost, net of tax		—		—			—			94			—			94
Cumulative translation adjustment, net of tax		—		—			—			(249	)		—			(249	)
Cash dividends of $0.04 per share		—		—			(1,284	)		—			—			(1,284	)
Acquired 116,176 shares of treasury stock		—		—			—			—			(3,920	)		(3,920	)
Issued shares on vesting of restricted stock units		1,876		(3,289	)		—			—			—			(1,413	)
Stock compensation		—		1,898			—			—			—			1,898
Balances at March 31, 2022	$	316,496	$	41,158		$	511,197		$	(3,445	)	$	(385,228	)	$	480,178
Net earnings		—		—			12,598			—			—			12,598
Changes in fair market value of derivatives, net of tax		—		—			—			705			—			705
Changes in unrealized pension cost, net of tax		—		—			—			2,082			—			2,082
Cumulative translation adjustment, net of tax		—		—			—			(2,012	)		—			(2,012	)
Cash dividends of $0.04 per share		—		—			(1,289	)		—			—			(1,289	)
Acquired 216,252 shares of treasury stock		—		—			—			—			(7,748	)		(7,748	)
Issued shares on vesting of restricted stock units		6		(84	)		—			—			—			(78	)
Stock compensation		—		1,511			—			—			—			1,511
Balances at June 30, 2022	$	316,502	$	42,585		$	522,506		$	(2,670	)	$	(392,976	)	$	485,947

See notes to unaudited condensed consolidated financial statements.

7

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED

(in thousands of dollars)

The following summarizes the changes in total equity for the three and six months ended June 30, 2021:

	Common Stock		Additional Contributed Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total
Balances at December 31, 2020	$	311,190	$	41,654		$	539,281		$	(95,921	)	$	(372,522	)	$	423,682
Net earnings		—		—			11,990			—			—			11,990
Changes in fair market value of derivatives, net of tax		—		—			—			124			—			124
Changes in unrealized pension cost, net of tax		—		—			—			1,422			—			1,422
Cumulative translation adjustment, net of tax		—		—			—			12			—			12
Cash dividends of $0.04 per share		—		—			(1,294	)		—			—			(1,294	)
Issued shares on vesting of restricted stock units		1,818		(3,218	)		—			—			—			(1,400	)
Stock compensation		—		1,180			—			—			—			1,180
Balances at March 31, 2021	$	313,008	$	39,616		$	549,977		$	(94,363	)	$	(372,522	)	$	435,716
Net earnings		—		—			875			—			—			875
Changes in fair market value of derivatives, net of tax		—		—			—			268			—			268
Changes in unrealized pension cost, net of tax		—		—			—			17,024			—			17,024
Cumulative translation adjustment, net of tax		—		—			—			1			—			1
Cash dividends of $0.04 per share		—		—			(1,299	)		—			—			(1,299	)
Issued shares on vesting of restricted stock units		1,333		(1,413	)		—			—			—			(80	)
Stock compensation		—		1,804			—			—			—			1,804
Balances at June 30, 2021	$	314,341	$	40,007		$	549,553		$	(77,070	)	$	(372,522	)	$	454,309

See notes to unaudited condensed consolidated financial statements.

8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

(in thousands except for share and per share data)

June 30, 2022

NOTE 1 — Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings.

There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

NOTE 2 – Revenue Recognition

The core principle of Accounting Standard Codification (“ASC”) Topic 606 Revenue from Contracts with Customers is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle:

•Identify the contract(s) with a customer

•Identify the performance obligations

•Determine the transaction price

•Allocate the transaction price

•Recognize revenue when the performance obligations are met

We recognize revenue when the performance obligations specified in our contracts have been satisfied, after considering the impact of variable consideration and other factors that may affect the transaction price. Our contracts normally contain a single performance obligation that is fulfilled on the date of delivery or shipment based on shipping terms stipulated in the contract. We usually expect payment within 30 to 90 days from the shipping date, depending on our terms with the customer. None of our contracts as of June 30, 2022 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable.

To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method based on an analysis of historical experience and current facts and circumstances, which requires significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

9

Disaggregated Revenue

The following table presents revenues disaggregated by the major markets we serve:

	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Transportation	$	74,690	$	71,556	$	153,824	$	147,410
Industrial		41,402		32,448		81,409		62,075
Medical		17,030		12,802		32,897		24,078
Aerospace & Defense		11,860		12,779		24,547		24,449
Total	$	144,982	$	129,585	$	292,677	$	258,012

NOTE 3 – Business Acquisitions

TEWA Temperature Sensors SP. Zo.o. Acquisition

On February 28, 2022, we acquired 100% of the outstanding shares of TEWA Temperature Sensors SP. Zo.o. (“TEWA”). TEWA is a designer and manufacturer of high-quality temperature sensors. TEWA has complementary capabilities with our existing temperature sensing platform and the acquisition supports our end market diversification strategy by expanding our presence in Europe.

The purchase price, which includes assumed changes in working capital, of $24,484, net of cash acquired of $2,945, has been allocated to the fair values of assets and liabilities acquired as of February 28, 2022. The allocation of the purchase price continues to be preliminary pending the completion of the valuation of intangible assets and finalization of management's estimates. The final purchase price allocation may result in a materially different allocation than that recorded as of June 30, 2022.

The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:

	Fair Values at February 28, 2022
Current assets	$	6,451
Property, plant and equipment		2,177
Other assets		28
Goodwill		6,106
Intangible assets		12,503
Fair value of assets acquired		27,265
Less fair value of liabilities acquired		(2,781	)
Purchase price	$	24,484

Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes.

The Company recorded a $1,113 step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up is being amortized as a non-cash charge to cost of goods sold as the acquired inventory was sold with $580 recognized in the first quarter of 2022 and the remaining in the second quarter of 2022.

Intangible assets acquired have been assigned a provisional value of $12,503 and an estimated weighted average amortization period of 12 years. They are included as customer lists/relationships in our Condensed Consolidated Balance Sheets and subsequent notes. Due to the timing of the acquisition, the identification and valuation of all intangible assets remains incomplete; however, management used

10

historical experience and projections to estimate the potential value at June 30, 2022. The amount and assumptions included above remain an estimate that will be adjusted once purchase accounting is complete.

Ferroperm Piezoceramics A/S Acquisition

On June 30, 2022, we acquired 100% of the outstanding shares of Ferroperm Piezoceramics A/S (“Ferroperm”). Ferroperm specializes in the design and manufacture of high performance piezoceramic components for use in complex and demanding medical, industrial, and aerospace applications. Ferroperm has complementary capabilities with our existing medical diagnostics and imaging product lines. The acquisition supports our end market diversification strategy and expanding our presence in European end markets.

The purchase price of $72,044, which includes assumed changes in working capital, net of cash acquired of $5,578, has been allocated to the fair values of assets and liabilities acquired as of June 30, 2022. The allocation of the purchase price continues to be preliminary pending the completion of the valuation of intangible assets and finalization of management's estimates. The final purchase price allocation may result in a materially different allocation than that recorded as of June 30, 2022.

The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:

	Fair Values at June 30, 2022
Accounts Receivable	$	3,073
Inventory		6,848
Other current assets		1,001
Property, plant and equipment		3,953
Other assets		158
Goodwill		24,285
Intangible assets		36,393
Fair value of assets acquired		75,711
Less fair value of liabilities acquired		(3,667	)
Purchase price	$	72,044

Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes.

The Company recorded a $3,012 step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up will be amortized as a non-cash charge to cost of goods sold as the acquired inventory is sold.

Intangible assets acquired have been assigned a provisional value of $36,393 and an estimated weighted average amortization period of 12 years. They are included as customer lists/relationships in our Condensed Consolidated Balance Sheets and subsequent notes. Due to the timing of the acquisition, the identification and valuation of all intangible assets remains incomplete; however, management used historical experience and projections to estimate the potential value at June 30, 2022. The amount and assumptions included above remain an estimate that will be adjusted once purchase accounting is complete.

NOTE 4 – Accounts Receivable, net

The components of accounts receivable, net are as follows:

	As of
	June 30,			December 31,
	2022			2021
Accounts receivable, gross	$	100,260		$	83,848
Less: Allowance for credit losses		(1,311	)		(1,657	)
Accounts receivable, net	$	98,949		$	82,191

11

NOTE 5 – Inventories, net

Inventories, net consists of the following:

	As of
	June 30,			December 31,
	2022			2021
Finished goods	$	15,476		$	11,955
Work-in-process		21,367			18,878
Raw materials		37,520			28,078
Less: Inventory reserves		(10,205	)		(9,405	)
Inventories, net	$	64,158		$	49,506

NOTE 6 – Property, Plant and Equipment, net

Property, plant and equipment, net is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Land and land improvements	$	1,100		$	1,095
Buildings and improvements		74,424			69,614
Machinery and equipment		250,718			247,708
Less: Accumulated depreciation		(226,605	)		(221,541	)
Property, plant and equipment, net	$	99,637		$	96,876

Depreciation expense for the six months ended June 30, 2022 and June 30, 2021 was $8,847 and $8,795, respectively.

NOTE 7 – Retirement Plans

Pension Plans

Net pension expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows:

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Net pension expense	$	65	$	21,823	$	130	$	23,780

The components of net pension expense for our domestic and foreign plans include the following:

	Domestic Pension Plans					Foreign Pension Plans
	Three Months Ended					Three Months Ended
	June 30,		June 30,			June 30,			June 30,
	2022		2021			2022			2021
Service cost	$	—	$	—		$	6		$	6
Interest cost		5		1,218			4			4
Expected return on plan assets(1)		—		(1,058	)		(3	)		(3	)
Amortization of loss		8		1,550			45			43
Settlement charges		—		20,063			—			—
Total expense, net	$	13	$	21,773		$	52		$	50

(1)Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

12

	Domestic Pension Plans					Foreign Pension Plans
	Six Months Ended					Six Months Ended
	June 30,		June 30,			June 30,			June 30,
	2022		2021			2022			2021
Service cost	$	—	$	—		$	12		$	12
Interest cost		10		2,471			8			8
Expected return on plan assets(1)		—		(2,171	)		(6	)		(6	)
Amortization of loss		16		3,317			90			86
Settlement charges		—		20,063			—			—
Total expense, net	$	26	$	23,680		$	104		$	100

(1)Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

In February 2020, the Board of Directors authorized management to explore termination of the U.S.-based pension plan ("Plan"), subject to certain conditions. On June 1, 2020, we entered into the Fifth Amendment to the Plan whereby we set an effective termination date for the Plan of July 31, 2020. In February 2021, we received a determination letter from the Internal Revenue Service that allowed us to proceed with the termination process for the Plan. During the second quarter of 2021, the Company offered the option of receiving a lump sum payment to eligible participants with vested qualified Plan benefits in lieu of receiving monthly annuity payments. Approximately 365 participants elected to receive the settlement, and lump sum payments of approximately $35,594 were made from Plan assets to these participants in June 2021.

As required under U.S. GAAP, the Company recognizes a settlement gain or loss when the aggregate amount of lump-sum distributions to participants equals or exceeds the sum of the service and interest cost components of the net periodic pension cost. The amount of settlement gain or loss recognized is the pro rata amount of the existing unrealized gain or loss immediately prior to the settlement. In general, both the projected benefit obligation and fair value of plan assets are required to be remeasured in order to determine the settlement gain or loss.

Upon the partial settlement of the pension liability due to the lump sum offering in the second quarter of 2021, the Company recognized a non-cash and non-operating settlement charge of $20,063 related to pension losses, reclassified from accumulated other comprehensive loss to other income (expense) in the Company's Condensed Consolidated Statements of Earnings.

On July 29, 2021, the Plan purchased a group annuity contract that transferred our benefit obligations for approximately 2,700 CTS participants and beneficiaries in the United States (“Transferred Participants”). As part of the purchase of the group annuity contract, Plan benefit obligations and related annuity administration services for Transferred Participants were irrevocably assumed and guaranteed by the insurance company effective as of August 3, 2021. There will be no change to pension benefits for Transferred Participants. The purchase of the group annuity contract was fully funded directly by Plan assets.

As a result of the final settlement of the pension liability with the purchase of annuities, we reclassified the remaining related unrecognized pension losses of $106,206 that were previously recorded in accumulated other comprehensive loss to the Consolidated Statements of Earnings as a non-cash and non-operating settlement charge in the third quarter of 2021.

In January 2022, we transferred approximately $17,500 of funds from Plan assets to a qualified replacement plan (“QRP”) managed by the Company. The QRP requires that these assets be used to fund future annual Company contributions to our U.S. 401(k) program. The Plan assets of $33,860 as of June 30, 2022, will remain in the Plan until final administrative tasks are completed. This process is now expected to be completed in the third quarter of 2022, whereby the remaining Plan assets will liquidate and revert to CTS. At that time, the funds will be subject to income and excise taxes.

Other Post-retirement Benefit Plan

Net post-retirement expense for our other post-retirement plan includes the following components:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Service cost	$	—	$	—	$	—	$	—
Interest cost		26		20		52		43
Amortization of gain		—		—		—		—
Total expense, net	$	26	$	20	$	52	$	43

13

NOTE 8 – Goodwill and Other Intangible Assets

Other Intangible Assets

Other intangible assets, net consist of the following components:

	As of
	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer lists/relationships	$	144,735	$	(52,274	)	$	92,461
Technology and other intangibles		47,441		(27,078	)		20,363
Other intangible assets, net	$	192,176	$	(79,352	)	$	112,824
Amortization expense for the three months ended    June 30, 2022			$	2,536
Amortization expense for the six months ended    June 30, 2022			$	4,918

	As of
	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer lists/relationships	$	96,889	$	(49,213	)	$	47,676
Technology and other intangibles		47,441		(25,229	)		22,212
Other intangible assets, net	$	144,330	$	(74,442	)	$	69,888
Amortization expense for the three months ended    June 30, 2021			$	2,348
Amortization expense for the six months ended    June 30, 2021			$	4,717

Remaining amortization expense for other intangible assets as of June 30, 2022 is as follows:

	Amortization expense
2022	$	6,538
2023		11,107
2024		10,945
2025		10,723
2026		10,689
Thereafter		62,822
Total amortization expense	$	112,824

Goodwill

Changes in the net carrying amount of goodwill were as follows:

	Total
Goodwill as of December 31, 2021	$	109,798
Increase from acquisitions		30,381
Foreign exchange impact		(562	)
Goodwill as of June 30, 2022	$	139,617

14

NOTE 9 – Costs Associated with Exit and Restructuring Activities

Restructuring charges are reported as a separate line within operating earnings in the Condensed Consolidated Statement of Earnings.

Total restructuring charges are as follows:

	Three Months Ended
	June 30, 2022		June 30, 2021
Restructuring charges	$	630	$	151

	Six Months Ended
	June 30, 2022		June 30, 2021
Restructuring charges	$	942	$	232

September 2020 Plan

In September 2020, we initiated a restructuring plan focused on optimizing our manufacturing footprint and improving operational efficiency by better utilizing our systems capabilities (the "September 2020 Plan"). This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions. The restructuring cost of the September 2020 Plan is now estimated to be in the range of $3,500 and $4,500, including workforce reduction charges, building and equipment relocation charges and other contract and asset-related costs. We have incurred $1,555 in program costs to date. We recorded $158 in workforce reduction costs during the three and six months ended June 30, 2022 under the 2020 Plan. Due to the robust market demand and COVID-19 limitations, some projects have been delayed. The total restructuring liability associated with these actions was $158 as of June 30, 2022. There was no liability related to the September 2020 Plan as of December 31, 2021.

Other Restructuring Activities

From time to time we undertake other restructuring activities that are not part of a formal plan. During the three and six months ended June 30, 2022, we incurred restructuring charges of $470 and $782, respectively. During the three and six months ended June 30, 2021, we incurred restructuring charges of $161 and $262, respectively. The total restructuring liability associated with these actions was $723 at June 30, 2022 and $962 at December 31, 2021.

The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the six months ended June 30, 2022:

Restructuring liability at January 1, 2022	$	962
Restructuring charges		942
Cost paid		(1,023	)
Other activity(1)		—
Restructuring liability at June 30, 2022	$	881

(1)Other activity includes the effects of currency translation, non-cash asset write-downs and other charges that do not flow through restructuring expense.

15

NOTE 10 – Accrued Expenses and Other Liabilities

The components of accrued expenses and other liabilities are as follows:

	As of
	June 30,		December 31,
	2022		2021
Accrued product related costs	$	2,623	$	3,188
Accrued income taxes		7,843		6,761
Accrued property and other taxes		2,361		2,370
Accrued professional fees		1,698		1,629
Accrued customer related liabilities		4,767		3,254
Dividends payable		1,287		1,289
Remediation reserves		11,348		10,979
Derivative liabilities		—		437
Other accrued liabilities		4,244		6,811
Total accrued expenses and other liabilities	$	36,171	$	36,718

NOTE 11 – Commitments and Contingencies

Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently and formerly owned or operated by us. Two of those sites, Asheville, North Carolina and Mountain View, California, are designated National Priorities List sites under the U.S. Environmental Protection Agency’s Superfund program. We accrue a liability for probable remediation activities, claims and proceedings against us with respect to environmental matters if the amount can be reasonably estimated, and provide disclosures including the nature of a loss whenever it is probable or reasonably possible that a potentially material loss may have occurred but cannot be estimated. We record contingent loss accruals on an undiscounted basis.

A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Balance at beginning of period	$	10,979		$	10,642
Remediation expense		1,382			2,254
Net remediation payments		(1,019	)		(1,929	)
Other activity(1)		6			12
Balance at end of the period	$	11,348		$	10,979

(1)Other activity includes currency translation adjustments not recorded through remediation expense.

Unrelated to the environmental claims described above, certain other legal claims are pending against us with respect to matters arising out of the ordinary conduct of our business.

We provide product warranties when we sell our products and accrue for estimated liabilities at the time of sale. Warranty estimates are forecasts based on the best available information and historical claims experience. We accrue for specific warranty claims if we believe that the facts of a specific claim make it probable that a liability in excess of our historical experience has been or will be incurred, and provide disclosures for specific claims whenever it is reasonably possible that a material loss may be incurred which cannot be estimated.

We cannot provide assurance that the ultimate disposition of environmental, legal, and product warranty claims will not materially exceed the amount of our accrued losses and adversely impact our consolidated financial position, results of operations, or cash flows. Our accrued liabilities and disclosures will be adjusted accordingly if additional information becomes available in the future.

16

NOTE 12 - Debt

Long-term debt is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Total credit facility	$	400,000		$	400,000
Balance outstanding		91,027			50,000
Standby letters of credit		1,640			1,740
Amount available, subject to covenant restrictions	$	307,333		$	348,260
Weighted-average interest rate		1.57	%		1.16	%

On December 15, 2021, we entered into a second amended and restated five-year credit agreement with a group of banks (the “Revolving Credit Facility”) to (i) increase the total credit facility to $400,000, which may be increased by $200,000 at the request of the Company, subject to the administrative agent's approval, (ii) extend the maturity of the Revolving Credit Facility from February 12, 2024 to December 15, 2026, (iii) replace LIBOR with SOFR as the primary reference rate used to calculate interest on the loans under the Revolving Credit Facility, (iv) increase available sublimits for letters of credit, and swingline loans as well as providing for additional alternative currency borrowing capabilities, and (v) modify the financial and non-financial covenants to provide the Company additional flexibility.

Borrowings in U.S. dollars under the Revolving Credit Facility bear interest, at a per annum rate equal to the applicable Term SOFR rate (but not less than 0.0%), plus the Term SOFR adjustment, and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio. Similarly, borrowings of alternative currencies under the Revolving Credit Facility bear interest equal to a defined risk-free reference rate, plus the applicable risk-free rate adjustment and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio.

The Revolving Credit Facility includes a swing line sublimit of $20,000 and a letter of credit sublimit of $20,000. We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.175% to 0.25% based on our net leverage ratio. The Revolving Credit Facility requires, in addition to customary representations and warranties, that we comply with a maximum net leverage ratio and a minimum interest coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the Revolving Credit Facility. We were in compliance with all debt covenants at June 30, 2022. The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor certifications, and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the Revolving Credit Facility contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments.

We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt, which approximates the effective interest method. Amortization expense for the three and six months ended June 30, 2022 was $48 and $97, respectively. Amortization expense for the three and six months ended June 30, 2021 was $42 and $84, respectively. These costs are included in interest expense in our Consolidated Statements of Earnings.

Note 13 - Derivative Financial Instruments

Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts as well as interest rate and cross-currency swaps to manage our exposure to these risks.

The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements.

17

The effective portion of derivative gains and losses are recorded in accumulated other comprehensive loss until the hedged transaction affects earnings upon settlement, at which time they are reclassified to cost of goods sold or net sales. If it is probable that an anticipated hedged transaction will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from accumulated other comprehensive loss to other income (expense), net.

We assess hedge effectiveness qualitatively by verifying that the critical terms of the hedging instrument and the forecasted transaction continue to match, and that there have been no adverse developments that have increased the risk that the counterparty will default. No recognition of ineffectiveness was recorded in our Condensed Consolidated Statements of Earnings for the three and six months ended June 30, 2022.

Foreign Currency Hedges

We use forward contracts to mitigate currency risk related to a portion of our forecasted foreign currency revenues and costs. The currency forward contracts are designed as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheets at fair value.

We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At June 30, 2022, we had a net unrealized gain of $401 in accumulated other comprehensive (loss) income, all of which is expected to be reclassified to earnings within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $9,379 at June 30, 2022.

Interest Rate Swaps

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest to a fixed rate. As of June 30, 2022, we have agreements to fix interest rates on $50,000 of long-term debt until December 2026. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled.

These swaps are treated as cash flow hedges and consequently, the changes in fair value are recorded in other comprehensive (loss) income. The estimated net amount of the existing gains that are reported in accumulated other comprehensive (loss) income that are expected to be reclassified into earnings within the next twelve months is approximately $523.

Cross-Currency Swap

The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. On June 27, 2022, the Company entered into a cross currency interest rate swap agreement that synthetically swapped $25,000 of variable rate debt to Krone denominated variable rate debt. Upon completion of the Ferroperm acquisition on June 30, 2022, the transaction was designated as a net investment hedge for accounting purposes and will mature on June 30, 2027.

Accordingly, any gains or losses on this derivative instrument will be included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted or liquidated. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense in the Condensed Consolidated Statements of Earnings. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Krone to United States Dollar exchange rate market.

Prior to designation as a net investment hedge, a gain of $111 was recorded in other expense within the Condensed Consolidated Statements of Earnings for three and six months ended June 30, 2022.

18

The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2022, are shown in the following table:

	As of
	June 30,		December 31,
	2022		2021
Interest rate swaps reported in Other current assets	$	679	$	—
Interest rate swaps reported in Other assets	$	684	$	—
Interest rate swaps reported in Accrued Expenses and other liabilities	$	—	$	(437	)
Interest rate swaps reported in Other long-term obligations	$	—	$	(353	)
Foreign currency hedges reported in Other current assets	$	514	$	135
Net investment hedge reported in Other assets	$	111	$	—

The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were foreign currency derivative assets of $514 and foreign currency derivative liabilities of $0 at June 30, 2022.

The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Foreign Exchange Contracts:
Amounts reclassified from AOCI to earnings:
Cost of goods sold		162			329			308			550
Total gain reclassified from AOCI to earnings		162			329			308			550
Total derivative gain on foreign exchange contracts recognized in earnings	$	162		$	329		$	308		$	550
Interest Rate Swaps:
Income (expense) recorded in Interest expense	$	(101	)	$	(187	)	$	(273	)	$	(363	)
Total net gains on derivatives	$	61		$	142		$	35		$	187

Derivative Contracts Not Designated as Hedges

In the second quarter of 2022, the Company used derivative contracts to manage foreign currency exchange risk related to funds to be used for the purchase price of the Ferroperm acquisition. These contracts were not designated as hedges and therefore changes in the fair values of these instruments were recognized directly in earnings. All contracts were settled in conjunction with the acquisition. As a result of these contracts, the Company recognized a $1,776 loss in other expense in the Condensed Consolidated Statements of Earnings.

NOTE 14 – Accumulated Other Comprehensive Loss

Shareholders’ equity includes certain items classified as accumulated other comprehensive loss (“AOCI”) in the Condensed Consolidated Balance Sheets, including:

•Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 13 - Derivative Financial Instruments and Note 17 – Fair Value Measurements.

•Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense). Further information related to our pension obligations is included in Note 7 – Retirement Plans.

19

•Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income.

Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction losses for the three and six months ended June 30, 2022 were $3,817 and $3,529, respectively. Transaction losses and (gains) for the three and six months ended June 30, 2021 were $928 and $(401), respectively. The impact of these changes have been included in other income (expense) in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive loss for the three months ended June 30, 2022 are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2022			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	969		$	976		$	(61	)	$	1,884
Income tax benefit (expense)		(221	)		(224	)		14			(431	)
Net		748			752			(47	)		1,453
Changes in unrealized pension cost:
Gross		(2,624	)		1,977			143			(504	)
Income tax benefit (expense)		712			—			(38	)		674
Net		(1,912	)		1,977			105			170
Cumulative translation adjustment:
Gross		(2,281	)		(2,012	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,281	)		(2,012	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(3,445	)	$	717		$	58		$	(2,670	)

The components of accumulated other comprehensive loss for the three months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(877	)	$	490		$	(142	)	$	(529	)
Income tax (expense) benefit		203			(113	)		33			123
Net		(674	)		377			(109	)		(406	)
Changes in unrealized pension cost:
Gross		(126,157	)		499			21,606			(104,052	)
Income tax benefit (expense)		34,492			(115	)		(4,966	)		29,411
Net		(91,665	)		384			16,640			(74,641	)
Cumulative translation adjustment:
Gross		(2,024	)		1			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,024	)		1			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(94,363	)	$	762		$	16,531		$	(77,070	)

20

The components of accumulated other comprehensive loss for the six months ended June 30, 2022, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	(635	)	$	2,554			(35	)	$	1,884
Income tax (expense) benefit		147			(587	)		9			(431	)
Net		(488	)		1,967			(26	)		1,453
Changes in unrealized pension cost:
Gross		(2,744	)		1,977			263			(504	)
Income tax benefit (expense)		738			—			(64	)		674
Net		(2,006	)		1,977			199			170
Cumulative translation adjustment:
Gross		(2,032	)		(2,261	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,032	)		(2,261	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(4,526	)	$	1,683		$	173		$	(2,670	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2020			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(1,038	)	$	696			(187	)	$	(529	)
Income tax (expense) benefit		240			(160	)		43			123
Net		(798	)		536			(144	)		(406	)
Changes in unrealized pension cost:
Gross		(128,004	)		499			23,453			(104,052	)
Income tax benefit (expense)		34,917			(115	)		(5,391	)		29,411
Net		(93,087	)		384			18,062			(74,641	)
Cumulative translation adjustment:
Gross		(2,036	)		13			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,036	)		13			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(95,921	)	$	933		$	17,918		$	(77,070	)

NOTE 15 – Shareholders’ Equity

Share count and par value data related to shareholders’ equity are as follows:

	As of
	June 30,		December 31,
	2022		2021
Preferred Stock
Par value per share	No par value		No par value
Shares authorized		25,000,000		25,000,000
Shares outstanding		—		—
Common Stock
Par value per share	No par value		No par value
Shares authorized		75,000,000		75,000,000
Shares issued		57,310,174		57,245,060
Shares outstanding		31,911,401		32,178,715
Treasury stock
Shares held		25,398,773		25,066,345

21

On May 13, 2021, the Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50,000 of the Company’s common stock. The repurchase program has no set expiration date and replaces the repurchase program approved by the Board of Directors on February 7, 2019. During the three and six months ended June 30, 2022, 216,252 and 332,428 shares of common stock were repurchased for $7,748 and $11,668, respectively. During the three and six months ended June 30, 2021, there were no shares of common stock that were repurchased. As of June 30, 2022, approximately $29,546 remains available for future purchases.

A roll-forward of common shares outstanding is as follows:

	Six months ended
	June 30,			June 30,
	2022			2021
Balance at the beginning of the year		32,178,715			32,276,787
Repurchases		(332,428	)		—
Restricted share issuances		65,114			158,969
Balance at the end of the period		31,911,401			32,435,756

Certain potentially dilutive restricted stock units are excluded from diluted earnings per share because they are anti-dilutive. The number of outstanding awards that were anti-dilutive for the three months ended June 30, 2022 and 2021 were 2,500 and 93, respectively. The number of outstanding awards that were anti-dilutive for the six months ended June 30, 2022 and 2021 were 2,500 and 46,810, respectively

NOTE 16- Stock-Based Compensation

At June 30, 2022, we had five active stock-based compensation plans: the Non-Employee Directors’ Stock Retirement Plan (“Directors’ Plan”), the 2004 Omnibus Long-Term Incentive Plan (“2004 Plan”), the 2009 Omnibus Equity and Performance Incentive Plan (“2009 Plan”), the 2014 Performance and Incentive Compensation Plan (“2014 Plan”), and the 2018 Equity and Incentive Compensation Plan ("2018 Plan"). Future grants can only be made under the 2018 Plan.

These plans allow for grants of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares, performance units, and other stock awards subject to the terms of the specific plans under which the awards are granted.

The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans:

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Service-based RSUs	$	691	$	738	$	1,368	$	1,425
Performance-based RSUs		820		1,066		2,041		1,559
Cash-settled RSUs		105		99		157		138
Total	$	1,616	$	1,903	$	3,566	$	3,122
Income tax benefit		372		438		820		718
Net expense	$	1,244	$	1,465	$	2,746	$	2,404

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The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized:

	Unrecognized
	Compensation		Weighted-
	Expense at		Average
	June 30, 2022		Period (years)
Service-based RSUs	$	2,711		1.44
Performance-based RSUs		5,117		1.89
Total	$	7,828		1.73

We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards.

The following table summarizes the status of these plans as of June 30, 2022:

	2018 Plan		2014 Plan		2009 Plan		2004 Plan		Directors' Plan
Awards originally available		2,500,000		1,500,000		3,400,000		6,500,000	N/A
Maximum potential awards outstanding		716,826		35,100		45,200		14,545		4,722
RSUs and cash settled awards vested and released		117,828		—		—		—		—
Awards available for grant		1,665,346		—		—		—		—

Service-Based Restricted Stock Units

The following table summarizes the service-based RSU activity for the three months ended June 30, 2022:

	Units			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		283,216		$	24.91
Granted		68,124			33.70
Vested and released		(58,144	)		29.96
Forfeited		(7,838	)		30.35
Outstanding at June 30, 2022		285,358		$	25.83
Releasable at June 30, 2022		132,834		$	17.55

Performance and Market-Based Restricted Stock Units

The following table summarizes the performance and market-based RSU activity for the three months ended June 30, 2022:

	Units			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		237,767		$	31.35
Granted		81,702			37.15
Attained by performance		5,136			29.50
Released		(51,848	)		30.64
Forfeited		(14,351	)		32.62
Outstanding at June 30, 2022		258,406		$	33.20
Releasable at June 30, 2022		—		$	—

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Cash-Settled Restricted Stock Units

Cash-Settled RSUs entitle the holder to receive the cash equivalent of one share of common stock for each unit when the unit vests. These RSUs are issued to key employees residing in foreign locations as direct compensation. Generally, these RSUs vest over a three-year period. Cash-Settled RSUs are classified as liabilities and are remeasured at each reporting date until settled. At June 30, 2022 and December 31, 2021, we had 46,524 and 32,085 cash-settled RSUs outstanding, respectively. At June 30, 2022 and December 31, 2021, liabilities of $299 and $400, respectively, were included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheets.

NOTE 17 — Fair Value Measurements

The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2022:

	Asset (Liability) Carrying Value at June 30, 2022			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	1,363		$	—	$	1,363	$	—
Foreign currency hedges	$	514		$	—	$	514	$	—
Cross-currency swap	$	111		$	—	$	111	$	—
Qualified replacement plan assets	$	16,149		$	16,149	$	—	$	—
Contingent consideration	$	(300	)	$	—	$	—	$	(300	)

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2021:

	(Liability) Asset Carrying Value at December 31, 2021			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(790	)	$	—	$	(790	)	$	—
Foreign currency hedges	$	135		$	—	$	135		$	—
Contingent consideration	$	(1,200	)	$	—	$	—		$	(1,200	)

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. The Company entered into a cross currency swap agreement in order to manage its exposure to changes in interest rates related to foreign debt. These derivative financial instruments are measured at fair value on a recurring basis. The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but that market is not active and therefore they are classified within Level 2 of the fair value hierarchy.

The fair value of the contingent consideration requires significant judgment. The Company's fair value estimates used in the contingent consideration valuation are considered Level 3 fair value measurements. The fair value estimates were based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and timing of events and activities that are expected to take place.

A roll-forward of the contingent consideration is as follows:

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	Contingent Consideration
Balance at December 31, 2021	$	1,200
Settled in cash		(900	)
Balance at June 30, 2022 in accrued expenses and other liabilities	$	300

Our long-term debt consists of the Revolving Credit Facility, which is recorded at its carrying value. There is a readily determinable market for our long-term debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility.

The QRP assets consist of investment funds maintained for future contributions to the Company’s U.S. 401(k) program. See Note 7 for further information on the QRP. The investments are Level 1 marketable securities and are recorded in Other assets on our Condensed Consolidated Balance Sheets.

NOTE 18 — Income Taxes

The effective tax rates for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Effective tax rate		25.6	%		245.6	%		23.0	%		9.3	%

Our effective income tax rate was 25.6% and 245.6% in the second quarters of 2022 and 2021, respectively. The decrease in effective income tax is primarily attributed to a one-time non-cash settlement expense related to lump sum payments for the CTS Corporation U.S. pension plan that occurred in the second quarter of 2021. The second quarter 2022 effective income tax rate was higher than the U.S. statutory federal tax rate primarily due to the impact of foreign withholding taxes and state taxes. The second quarter 2021 effective tax rate was higher, primarily due to the one-time non-cash settlement expense in the U.S. pension plan outlined above.

Our effective income tax rate was 23.0% and 9.3% in the first half of 2022 and 2021, respectively. The increase is primarily attributed to a one-time non-cash settlement expense related to lump sum payments made for the CTS Corporation U.S. pension plan that occurred in Q2 2021. The tax rate in the first half of 2022 was higher than the U.S. statutory federal tax rate primarily due to the impact of foreign withholding taxes and state taxes. The tax rate in the first half of 2021 was lower than the U.S. statutory federal tax rate, primarily due to the one-time non-cash settlement expense in the U.S. pension plan outlined above.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

(in thousands of dollars, except percentages and per share amounts)

The following discussion should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and notes included under Item 1, as well as our Consolidated Financial Statements and notes and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Overview

CTS Corporation ("CTS", "we", "our" or "us") is a leading designer and manufacturer of products that Sense, Connect and Move. Our vision is to be a leading provider of sensing and motion devices as well as connectivity components, enabling an intelligent and seamless world. These devices are categorized by their ability to Sense, Connect or Move. Sense products provide vital inputs to electronic systems. Connect products allow systems to function in synchronization with other systems. Move products ensure required movements are effectively and accurately executed. We are committed to achieving our vision by continuing to invest in the development of products, technologies and talent within these categories.

We manufacture sensors, actuators, and connectivity components in North America, Europe, and Asia. CTS provides engineered products to original equipment manufacturers (“OEMs”) and tier one suppliers in the aerospace and defense, industrial, medical, and transportation markets.

There is an increasing proliferation of sensing, connectivity, and motion applications within various markets we serve. Our success is dependent on the ability to execute our strategy to support these trends. We are subject to challenges including, without limitation, periodic market softness, competition from other suppliers, changes in technology, and the ability to add new customers, launch new products or penetrate new markets.

On February 28, 2022, we acquired 100% of the outstanding shares of TEWA Temperature Sensors SP. Zo.o. (“TEWA”) for $24,484. TEWA is a designer and manufacturer of high-quality temperature sensors. TEWA has complementary capabilities with our existing temperature sensing platform and the acquisition supports our end market diversification strategy by expanding our presence in Europe.

On June 30, 2022, we acquired 100% of the outstanding shares of Ferroperm Piezoceramics A/S (“Ferroperm”) for $72,044. Ferroperm specializes in the design and manufacture of high performance piezoceramic components for use in complex and demanding medical, industrial, and aerospace applications. Ferroperm has complementary capabilities with our existing medical diagnostics and imaging product lines and the acquisition also supports our end market diversification strategy by expanding our presence in Europe end markets.

COVID-19 Impact and Supply Chain Uncertainties

The COVID-19 pandemic and subsequent supply chain uncertainties have had a significant negative impact on the global economy in 2020, 2021, and into 2022. These events have disrupted the financial markets, negatively impacted the global supply chain and increased the cost of materials and operations, particularly within the global automotive industry. Key semiconductor chip and other critical part shortages continue to force OEMs to shut down production, often on short notice. With customers changing orders on short notice, we run the risk of carrying excess inventory in these situations. These developments are outside of our control, remain highly uncertain, and cannot be predicted. In addition, the supply chain shortages continue to put pressure on our manufacturing costs and our gross margins. We continue to actively monitor the ongoing impacts of the COVID-19 pandemic and supply chain issues and will seek to mitigate and minimize their impact on our business, when possible. We anticipate these challenges to continue to impact our results for the remainder of 2022 and we remain cautious about the financial impact of these potential disruptions on our business.

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Results of Operations: Second Quarter 2022 versus Second Quarter 2021

The following table highlights changes in significant components of the Unaudited Condensed Consolidated Statements of Earnings for the quarters ended June 30, 2022, and June 30, 2021:

	Three Months Ended									Percent of			Percent of
	June 30,			June 30,			Percent			Net Sales –			Net Sales –
	2022			2021			Change			2022			2021
Net sales	$	144,982		$	129,585			11.9	%		100.0	%		100.0	%
Cost of goods sold		93,134			81,889			13.7			64.2			63.2
Gross margin		51,848			47,696			8.7			35.8			36.8
Selling, general and administrative expenses		22,238			20,937			6.2			15.3			16.2
Research and development expenses		6,294			6,029			4.4			4.3			4.7
Restructuring charges		630			151			317.2			0.4			0.1
Total operating expenses		29,162			27,117			7.5			20.1			20.9
Operating earnings		22,686			20,579			10.2			15.6			15.9
Total other expense, net		(5,764	)		(21,180	)		(72.8	)		(4.0	)		(16.3	)
Earnings (loss) before income taxes		16,922			(601	)	n/a				11.7			(0.5	)
Income tax expense (benefit)		4,324			(1,476	)	n/a				3.0			(1.1	)
Net earnings	$	12,598		$	875		n/a				8.7	%		0.7	%
Earnings per share:
Diluted net earnings per share	$	0.39		$	0.03

Net sales were $144,982 in the second quarter of 2022, an increase of $15,397 or 11.9% from the second quarter of 2021. Net sales to non-transportation markets increased $12,263 or 21.1% while net sales to transportation markets increased $3,134 or 4.4%. The TEWA acquisition, which was completed in February 2022, added $4,065 in net sales for the quarter. Changes in foreign exchange rates decreased net sales by $2,186 year-over-year primarily due to the U.S. Dollar appreciating compared to the Euro.

Gross margin as a percent of net sales was 35.8% in the second quarter of 2022 compared to 36.8% in the second quarter of 2021. The decrease in gross margin was driven primarily by increased material and freight costs. We continue to experience significant inflation in material and freight costs as well as interruptions in the supply chain particularly due to the global semiconductor chip shortages impacting the operations of our business. The impact of the supply chain shortages and OEM shutdowns are expected to continue to have an adverse effect on our operations that we are continuing to attempt to mitigate.

Selling, general and administrative ("SG&A") expenses were $22,238 or 15.3% of net sales in the second quarter of 2022 versus $20,937 or 16.2% of net sales in the second quarter of 2021. The increase in SG&A expenses was primarily caused by expenses related to acquisition activity.

Research and development (“R&D”) expenses were $6,294 or 4.3% of net sales in the second quarter of 2022 compared to $6,029 or 4.7% of net sales in the comparable quarter of 2021. The increase in overall R&D expenses is in line with our commitment to continue investing in research and product development to drive organic growth.

Restructuring charges were $630 or 0.4% of net sales in the second quarter of 2022 compared to $151 or 0.1% of net sales in the second quarter of 2021. We continue to implement certain restructuring actions to improve our cost structure to remain competitive.

Operating earnings were $22,686 or 15.6% of net sales in the second quarter of 2022 compared to operating earnings of $20,579 or 15.9% of net sales in the second quarter of 2021. The change in operating earnings were primarily driven by the items discussed above.

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Other income and expense items are summarized in the following table:

	Three Months Ended
	June 30,			June 30,
	2022			2021
Interest expense	$	(602	)	$	(508	)
Interest income		263			257
Other expense, net		(5,425	)		(20,929	)
Total other expense, net	$	(5,764	)	$	(21,180	)

The reduction in other expense, net was primarily driven by decreased pension expense due to the U.S. pension plan termination, effective in 2021. Other expense, net for 2022 is primarily driven by $1,776 in derivative losses associated with the acquisition of Ferroperm as well as foreign currency losses primarily related to the Chinese Renminbi.

	Three Months Ended
	June 30,			June 30,
	2022			2021
Effective tax rate		25.6	%		245.6	%

Our effective income tax rate was 25.6% and 245.6% in the second quarters of 2022 and 2021, respectively. The decrease in effective income tax is primarily attributed to a one-time non-cash settlement expense related to lump sum payments for the CTS Corporation U.S. pension plan that occurred in the second quarter of 2021.

Results of Operations: Six Months ended June 30, 2022 versus Six Months Ended June 30, 2021

The following table highlights changes in significant components of the Unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2022, and June 30, 2021:

	Six Months Ended									Percent of			Percent of
	June 30,			June 30,			Percent			Net Sales –			Net Sales –
	2022			2021			Change			2022			2021
Net sales	$	292,677		$	258,012			13.4	%		100.0	%		100.0	%
Cost of goods sold		186,489			167,725			11.2			63.7			65.0
Gross margin		106,188			90,287			17.6			36.3			35.0
Selling, general and administrative expenses		44,026			39,262			12.1			15.0			15.2
Research and development expenses		12,488			11,716			6.6			4.3			4.5
Restructuring charges		942			232			306.0			0.3			0.1
Total operating expenses		57,456			51,210			12.2			19.6			19.8
Operating earnings		48,732			39,077			24.7			16.7			15.1
Total other (expense), net		(6,064	)		(24,889	)		(75.6	)		(2.1	)		(9.6	)
Earnings before income taxes		42,668			14,188			200.7			14.6			5.5
Income tax expense		9,831			1,323			643.1			3.4			0.5
Net earnings	$	32,837		$	12,865			155.2	%		11.2	%		5.0	%
Earnings per share:
Diluted net earnings per share	$	1.02		$	0.39

Net sales were $292,677 in the six months ended June 30, 2022, an increase of $34,665 or 13.4% from the six months ended June 30, 2021. Net sales to non-transportation markets increased $28,251 or 25.5% while net sales to transportation markets increased $6,414 or 4.4%. The TEWA acquisition, which was completed in February 2022, added $5,504 in net sales for the year to date period. Changes in foreign exchange rates decreased net sales by $2,515 year-over-year primarily due to the U.S. Dollar appreciating compared to the Euro.

Gross margin as a percent of net sales was 36.3% for the six months ended June 30, 2022 compared to 35.0% for the six months ended June 30, 2021. The increase in gross margin was driven primarily by sales volume and mix offset by increased material and freight costs. We continue to experience significant inflation in material and freight costs as well as interruptions in the supply chain particularly due

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to the global semiconductor chip shortages impacting the operations of our business. The impact of the supply chain shortages and OEM shutdowns are expected to continue to have an adverse effect on our operations that we are continuing to attempt to mitigate.

SG&A expenses were $44,026 or 15.0% of net sales for the six months ended June 30, 2022 versus $39,262 or 15.2% of net sales for the six months ended June 30, 2021. The increase in SG&A expenses was caused by expenses related to acquisition activity.

R&D expenses were $12,488 or 4.3% of net sales for the six months ended June 30, 2022 compared to $11,716 or 4.5% of net sales for the six months ended June 30, 2021. The increase in overall R&D expenses is in line with our commitment to continue investing in research and product development to drive organic growth.

Restructuring charges were $942 or 0.3% of net sales for the six months ended June 30, 2022 compared to $232 or 0.1% of net sales for the six months ended June 30, 2021. We continue to implement certain restructuring actions to improve our cost structure to remain competitive.

Operating earnings were $48,732 or 16.7% of net sales for the six months ended June 30, 2022 compared to operating earnings of $39,077 or 15.1% of net sales for the six months ended June 30, 2021. The change in operating earnings were primarily driven by the items discussed above.

Other income and expense items are summarized in the following table:

	Six Months Ended
	June 30,			June 30,
	2022			2021
Interest expense	$	(1,148	)	$	(1,063	)
Interest income		443			459
Other expense, net		(5,359	)		(24,285	)
Total other expense, net	$	(6,064	)	$	(24,889	)

The reduction in other expense, net was primarily driven by decreased pension expense due to the U.S. pension plan termination, effective in 2021. Other expense, net for 2022 is primarily driven by $1,776 in derivative losses associated with the acquisition of Ferroperm as well as foreign currency losses primarily related to the Chinese Renminbi.

	Six Months Ended
	June 30,			June 30,
	2022			2021
Effective tax rate		23.0	%		9.3	%

Our effective income tax rate was 23.0% and 9.3% for the six months ended June 30, 2022 and 2021, respectively. The increase is primarily attributed to a one-time non-cash settlement expense related to lump sum payments made for the CTS Corporation U.S. pension plan that occurred in Q2 2021.

Liquidity and Capital Resources

We have historically funded our capital and operating needs primarily through cash flows from operating activities, supported by available credit under our Revolving Credit Facility (as defined below). We believe that cash flows from operating activities and available borrowings under our Revolving Credit Facility will be adequate to fund our working capital needs, capital expenditures, investments, and debt service requirements for at least the next twelve months and for the foreseeable future thereafter. However, we may choose to pursue additional equity and debt financing to provide additional liquidity or to fund acquisitions.

Cash and cash equivalents were $98,739 at June 30, 2022, and $141,465 at December 31, 2021, of which $86,968 and $124,635, respectively, were held outside the United States. Total long-term debt was $91,027 as of June 30, 2022 and $50,000 as of December 31, 2021. Total debt as a percentage of total capitalization, defined as long-term debt as a percentage of total debt and shareholders' equity, was 15.8% at June 30, 2022, compared to 9.7% at December 31, 2021.

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Cash Flow Overview

Cash Flows from Operating Activities

Net cash provided by operating activities was $35,352 during the six months ended June 30, 2022. Components of net cash provided by operating activities included net earnings of $32,837, depreciation and amortization expense of $13,765, other net non-cash items of $6,126, and a net cash outflow from changes in assets and liabilities of $17,376.

Cash Flows from Investing Activities

Net cash used in investing activities for the six months ended June 30, 2022 was $(103,519), driven by the acquisition payments for the TEWA and Ferroperm acquisitions of $96,528 and capital expenditures of $6,991. See Note 3 "Business Acquisitions" in the Notes to the Condensed Consolidated Financial Statements.

Cash Flows from Financing Activities

Net cash provided by financing activities for the six months ended June 30, 2022 was $24,392. The net cash inflow was the result of treasury stock purchases of $11,668, dividends paid of $2,576, taxes paid on behalf of equity award participants of $1,491, and contingent consideration payments of $900.

Capital Resources

Revolving Credit Facility

Long‑term debt is comprised of the following:

	As of
	June 30,		December 31,
	2022		2021
Total credit facility	$	400,000	$	400,000
Balance outstanding		91,027		50,000
Standby letters of credit		1,640		1,740
Amount available, subject to covenant restrictions	$	307,333	$	348,260

On December 15, 2021, we entered into a second amended and restated five-year credit agreement with a group of banks (the “Revolving Credit Facility”) to (i) increase the total credit facility availability to $400,000, which may be increased by $200,000 at the request of the Company, subject to the administrative agent's approval, (ii) extend the maturity of the Revolving Credit Facility from February 12, 2024 to December 15, 2026, (iii) replace LIBOR with SOFR as the primary reference rate used to calculate interest on the loans under the Revolving Credit Facility, (iv) increase available sublimits for letters of credit, and swingline loans as well as providing for additional alternative currency borrowing capabilities, and (v) modify the financial and non-financial covenants to provide the Company additional flexibility. This new unsecured credit facility replaced the prior $300,000 unsecured credit facility, which would have expired February 12, 2024.

Borrowings in U.S. Dollars under the Revolving Credit Facility bear interest, at a per annum rate equal to the applicable Term SOFR rate (but not less than 0.0%), plus the Term SOFR adjustment, and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio. Similarly, borrowings of alternative currencies under the Revolving Credit Facility bear interest equal to a defined risk-free reference rate, plus the applicable risk-free rate adjustment and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio.

The Revolving Credit Facility includes a swing-line sublimit of $20,000 and a letter of credit sublimit of $20,000. We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.175% to 0.25% based on our net leverage ratio. We were in compliance with all debt covenants at June 30, 2022.

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Acquisitions

On February 28, 2022, we acquired TEWA, a designer and manufacturer of high-quality temperature sensors. The net cash payment of $24,484 for this acquisition was funded by the Company's cash on hand.

On June 30, 2022, we acquired Ferroperm, a designer and manufacturer of high performance piezoceramic components for use in complex and demanding medical, industrial, and aerospace applications. The net cash payment of $72,044 for this acquisition was funded by a combination of cash on hand and borrowings under our Revolving Credit Facility.

Critical Accounting Policies and Estimates

The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. In connection with the preparation of the condensed consolidated financial statements, the Company uses estimates and makes judgments and assumptions about future events that affect the reported amounts of assets, liabilities, revenue, expenses, and the related disclosures. The assumptions, estimates, and judgments are based on historical experience, current trends, and other factors the Company believes are relevant at the time it prepares the Condensed Consolidated Financial Statements.

The critical accounting policies and estimates are consistent with those discussed in Note 1, Summary of Significant Accounting Policies, to the Consolidated Financial Statements and the MD&A section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. During and as of the three and six months ended June 30, 2022, there were no significant changes in the application of critical accounting policies or estimates.

Significant Customers

Our net sales to customers representing at least 10% of total net sales is as follows:

	Three months ended						Six months ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Cummins Inc.		15.9	%		14.3	%		15.9	%		15.0	%
Toyota Motor Corporation		11.3	%		13.3	%		11.4	%		13.3	%

No other customer accounted for 10% or more of total net sales during these periods. We continue to focus on broadening our customer base to diversify our non-transportation end market exposure.

Forward‑Looking Statements

This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events, and any other statements that are not based solely on historical fact. Forward-looking statements are based on management’s expectations, certain assumptions and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties and other factors, which could cause CTS’ actual results, performance or achievements to differ materially from those presented in the forward-looking statements. Examples of factors that may affect future operating results and financial condition include, but are not limited to: the ultimate impact of the COVID-19 pandemic on CTS’ business, results of operations or financial condition; changes in the economy generally, including recessionary conditions, and in respect to the business in which CTS operates; unanticipated issues in integrating acquisitions; the results of actions to reposition CTS’ business; rapid technological change; general market conditions in the transportation, as well as conditions in the industrial, aerospace and defense, and medical markets; reliance on key customers; unanticipated public health crises, natural disasters or other events; environmental compliance and remediation expenses; the ability to protect CTS’ intellectual property; pricing pressures and demand for CTS’ products; and risks associated with CTS’ international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks (including, without limitation, the potential impact the conflict between Russia and Ukraine

31

may have on our business, results of operations and financial condition). Many of these, and other risks and uncertainties, are discussed in further detail in Item 1A. of CTS’ Annual Report on Form 10-K and other filings made with the SEC. CTS undertakes no obligation to publicly update CTS’ forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See Item 7A, Quantitative and Qualitative Disclosures about Market Risk, of our Annual Report on Form 10-K for the year ended December 31, 2021. During the three months ended June 30, 2022, there have been no material changes in our exposure to market risk.

32

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q were effective in providing reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within CTS have been detected.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting for the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time we are involved in litigation with respect to matters arising from the ordinary conduct of our business, and currently certain claims are pending against us. In the opinion of management, we believe we have established adequate accruals pursuant to U.S. generally accepted accounting principles for our expected future liability with respect to pending lawsuits, claims and proceedings, where the nature and extent of any such liability can be reasonably estimated based on presently available information. However, there can be no assurance that the final resolution of any existing or future lawsuits, claims or proceedings will not have a material adverse effect on our business, results of operations, financial condition, or cash flows.

See Note 11 "Commitments and Contingencies" in the Notes to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

There have been no significant changes to our risk factors from those contained in our Annual Report on Form 10-K for the year ended December 31, 2021.

33

Item 2. Unregistered Sales of Equity

On May 13, 2021, the Board of Directors authorized a stock repurchase program with a maximum dollar limit of $50 million. This program authorizes us to make repurchases of our common stock from time to time on the open market, but does not obligate us to make repurchases, and it has no expiration date.

					Total Number		Maximum Dollar
					of Shares		Value of Shares
					Purchased as		That May Yet Be
	Total Number				Part of Publicly		Purchased Under
	of Shares		Average Price		Announced		Publicly Announced
	Purchased		Paid per Share		Programs		Plans or Programs
April 1, 2022 through April 30, 2022		50,796	$	34.38		50,796	$	35,548
May 1, 2022 through May 31, 2022		75,425	$	37.02		75,425	$	32,756
June 1, 2022 through June 30, 2022		90,031	$	35.65		90,031	$	29,546
Total		216,252				216,252

34

Item 6. Exhibits

(31)(a)	Certification pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
(31)(b)	Certification pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
(32)(a)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
(32)(b)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
101.1	The following information from CTS Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 formatted in Inline XBRL: (i) Condensed Consolidated Statements of Earnings; (ii) Condensed Consolidated Statements of Comprehensive Earnings; (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Cash Flows; (v) Condensed Consolidated Statements of Shareholders’ Equity; (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104	The cover page from this Current Report on Form 10-Q formatted as inline XBRL

35

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CTS Corporation	CTS Corporation
/s/ Thomas M. White	/s/ Ashish Agrawal
Thomas M. White	Ashish Agrawal
Corporate Controller (Principal Accounting Officer)	Vice President and Chief Financial Officer (Principal Financial Officer)
Dated: July 26, 2022	Dated: July 26, 2022

36

EX-31.(A)

EXHIBIT (31)(a)

CERTIFICATION

I, Kieran O’Sullivan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of CTS Corporation:

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principles; and

(c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 26, 2022	/s/ Kieran O’Sullivan
	Kieran O’Sullivan
	Chairman, President and Chief Executive Officer

EX-31.(B)

EXHIBIT (31)(b)

CERTIFICATION

I, Ashish Agrawal, certify that:

1.I have reviewed this quarterly report on Form 10-Q of CTS Corporation:

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principles; and

(c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 26, 2022	/s/Ashish Agrawal
	Ashish Agrawal
	Vice President and Chief Financial Officer

EX-32.(A)

EXHIBIT (32)(a)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of CTS Corporation (the Company) on Form 10-Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned officer of the Company certifies, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 26, 2022	/s/ Kieran O’Sullivan
	Kieran O’Sullivan
	Chairman, President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to CTS Corporation and will be retained by CTS Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.(B)

EXHIBIT (32)(b)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of CTS Corporation (the Company) on Form 10-Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned officer of the Company certifies, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 26, 2022	/s/Ashish Agrawal
	Ashish Agrawal
	Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to CTS Corporation and will be retained by CTS Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 21, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000026058
Document Transition Report	false
Entity File Number	1-4639
Entity Registrant Name	CTS CORPORATION
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-0225010
Entity Address, Address Line One	4925 Indiana Avenue
Entity Address, City or Town	Lisle
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60532
City Area Code	630
Local Phone Number	577-8800
Title of Each Class	Common stock, without par value
Trading Symbol	CTS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,865,314

XML

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net sales	$ 144,982	$ 129,585	$ 292,677	$ 258,012
Cost of goods sold	93,134	81,889	186,489	167,725
Gross margin	51,848	47,696	106,188	90,287
Selling, general and administrative expenses	22,238	20,937	44,026	39,262
Research and development expenses	6,294	6,029	12,488	11,716
Restructuring charges	630	151	942	232
Operating earnings	22,686	20,579	48,732	39,077
Other (expense) income:
Interest expense	(602)	(508)	(1,148)	(1,063)
Interest income	263	257	443	459
Other expense, net	(5,425)	(20,929)	(5,359)	(24,285)
Total other expense, net	(5,764)	(21,180)	(6,064)	(24,889)
Earnings (loss) before income taxes	16,922	(601)	42,668	14,188
Income tax expense (benefit)	4,324	(1,476)	9,831	1,323
Net earnings	$ 12,598	$ 875	$ 32,837	$ 12,865
Earnings per share:
Basic	$ 0.39	$ 0.03	$ 1.02	$ 0.40
Diluted	$ 0.39	$ 0.03	$ 1.02	$ 0.39
Basic weighted – average common shares outstanding:	32,039	32,397	32,096	32,358
Effect of dilutive securities	204	229	218	259
Diluted weighted – average common shares outstanding:	32,243	32,626	32,314	32,617
Cash dividends declared per share	$ 0.04	$ 0.04	$ 0.08	$ 0.08

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - UNAUDITED - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net earnings	$ 12,598	$ 875	$ 32,837	$ 12,865
Other comprehensive earnings (loss):
Changes in fair market value of derivatives, net of tax	705	268	1,940	392
Changes in unrealized pension cost, net of tax	2,082	17,024	2,176	18,446
Cumulative translation adjustment, net of tax	(2,012)	1	(2,261)	13
Other comprehensive earnings	775	17,293	1,855	18,851
Comprehensive earnings	$ 13,373	$ 18,168	$ 34,692	$ 31,716

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 98,739	$ 141,465
Accounts receivable, net	98,949	82,191
Inventories, net	64,158	49,506
Other current assets	16,704	15,927
Total current assets	278,550	289,089
Property, plant and equipment, net	99,637	96,876
Operating lease assets, net	22,452	21,594
Other Assets
Prepaid pension asset	33,860	49,382
Goodwill	139,617	109,798
Other intangible assets, net	112,824	69,888
Deferred income taxes	23,401	25,415
Other	19,293	2,420
Total other assets	328,995	256,903
Total Assets	729,634	664,462
Current Liabilities
Accounts payable	60,662	55,537
Operating lease obligations	3,612	3,393
Accrued payroll and benefits	14,931	18,418
Accrued expenses and other liabilities	36,171	36,718
Total current liabilities	115,376	114,066
Long-term debt	91,027	50,000
Long-term operating lease obligations	21,851	21,354
Long-term pension obligations	6,361	6,886
Deferred income taxes	6,174	5,894
Other long-term obligations	2,898	2,684
Total Liabilities	243,687	200,884
Commitments and Contingencies (Note 11)
Shareholders’ Equity
Common stock	316,502	314,620
Additional contributed capital	42,585	42,549
Retained earnings	522,506	492,242
Accumulated other comprehensive loss	(2,670)	(4,525)
Total shareholders’ equity before treasury stock	878,923	844,886
Treasury stock	(392,976)	(381,308)
Total shareholders’ equity	485,947	463,578
Total Liabilities and Shareholders’ Equity	$ 729,634	$ 664,462

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 32,837	$ 12,865
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	13,765	13,512
Non-cash inventory charges	1,113
Pension and other post-retirement plan expense	182	23,823
Stock-based compensation	3,566	3,122
Deferred income taxes	1,277	(4,875)
Gain on foreign currency hedges, net of cash	(12)	(26)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(12,861)	316
Inventories	(7,177)	(2,994)
Operating lease assets	1,515	131
Other assets	2,513	(1,440)
Accounts payable	5,087	(3,433)
Accrued payroll and benefits	(4,458)	1,145
Operating lease liabilities	(1,658)	(143)
Accrued expenses and other liabilities	93	(3,028)
Pension and other post-retirement plans	(430)	(190)
Net cash provided by operating activities	35,352	38,785
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(6,991)	(3,970)
Payments for acquisitions, net of cash acquired	(96,528)	(255)
Net cash used in investing activities	(103,519)	(4,225)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt	(300,000)	(430,300)
Proceeds from borrowings of long-term debt	341,027	425,700
Purchase of treasury stock	(11,668)
Dividends paid	(2,576)	(2,585)
Payments of contingent consideration	(900)	(350)
Taxes paid on behalf of equity award participants	(1,491)	(1,480)
Net cash provided by (used in) financing activities	24,392	(9,015)
Effect of exchange rate changes on cash and cash equivalents	1,049	79
Net (decrease) increase in cash and cash equivalents	(42,726)	25,624
Cash and cash equivalents at beginning of period	141,465	91,773
Cash and cash equivalents at end of period	98,739	117,397
Supplemental cash flow information:
Cash paid for interest	969	716
Cash paid for income taxes, net	7,606	7,516
Capital expenditures incurred but not paid	$ 1,397	$ 1,288

XML

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands	Total	Common Stock	Additional Contributed Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning Balance at Dec. 31, 2020	$ 423,682	$ 311,190	$ 41,654	$ 539,281	$ (95,921)	$ (372,522)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	11,990			11,990
Changes in fair market value of derivatives, net of tax	124				124
Changes in unrealized pension cost, net of tax	1,422				1,422
Cumulative translation adjustment, net of tax	12				12
Cash dividends	(1,294)			(1,294)
Issued shares on vesting of restricted stock units	(1,400)	1,818	(3,218)
Stock compensation	1,180		1,180
Ending Balance at Mar. 31, 2021	435,716	313,008	39,616	549,977	(94,363)	(372,522)
Beginning Balance at Dec. 31, 2020	423,682	311,190	41,654	539,281	(95,921)	(372,522)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	12,865
Changes in fair market value of derivatives, net of tax	392
Changes in unrealized pension cost, net of tax	18,446
Cumulative translation adjustment, net of tax	13
Ending Balance at Jun. 30, 2021	454,309	314,341	40,007	549,553	(77,070)	(372,522)
Beginning Balance at Mar. 31, 2021	435,716	313,008	39,616	549,977	(94,363)	(372,522)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	875			875
Changes in fair market value of derivatives, net of tax	268				268
Changes in unrealized pension cost, net of tax	17,024				17,024
Cumulative translation adjustment, net of tax	1				1
Cash dividends	(1,299)			(1,299)
Issued shares on vesting of restricted stock units	(80)	1,333	(1,413)
Stock compensation	1,804		1,804
Ending Balance at Jun. 30, 2021	454,309	314,341	40,007	549,553	(77,070)	(372,522)
Beginning Balance at Dec. 31, 2021	463,578	314,620	42,549	492,242	(4,525)	(381,308)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	20,239			20,239
Changes in fair market value of derivatives, net of tax	1,235				1,235
Changes in unrealized pension cost, net of tax	94				94
Cumulative translation adjustment, net of tax	(249)				(249)
Cash dividends	(1,284)			(1,284)
Acquired shares for treasury stock	(3,920)					(3,920)
Issued shares on vesting of restricted stock units	(1,413)	1,876	(3,289)
Stock compensation	1,898		1,898
Ending Balance at Mar. 31, 2022	480,178	316,496	41,158	511,197	(3,445)	(385,228)
Beginning Balance at Dec. 31, 2021	463,578	314,620	42,549	492,242	(4,525)	(381,308)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	32,837
Changes in fair market value of derivatives, net of tax	1,940
Changes in unrealized pension cost, net of tax	2,176
Cumulative translation adjustment, net of tax	(2,261)
Acquired shares for treasury stock	(11,668)
Ending Balance at Jun. 30, 2022	485,947	316,502	42,585	522,506	(2,670)	(392,976)
Beginning Balance at Mar. 31, 2022	480,178	316,496	41,158	511,197	(3,445)	(385,228)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	12,598			12,598
Changes in fair market value of derivatives, net of tax	705				705
Changes in unrealized pension cost, net of tax	2,082				2,082
Cumulative translation adjustment, net of tax	(2,012)				(2,012)
Cash dividends	(1,289)			(1,289)
Acquired shares for treasury stock	(7,748)					(7,748)
Issued shares on vesting of restricted stock units	(78)	6	(84)
Stock compensation	1,511		1,511
Ending Balance at Jun. 30, 2022	$ 485,947	$ 316,502	$ 42,585	$ 522,506	$ (2,670)	$ (392,976)

XML

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share	$ 0.04	$ 0.04	$ 0.04	$ 0.04	$ 0.08	$ 0.08
Treasury stock, shares, acquired	216,252	116,176	0		332,428	0

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

NOTE 1 — Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings.

There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

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Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

NOTE 2 – Revenue Recognition

The core principle of Accounting Standard Codification (“ASC”) Topic 606 Revenue from Contracts with Customers is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle:

•Identify the contract(s) with a customer

•Identify the performance obligations

•Determine the transaction price

•Allocate the transaction price

•Recognize revenue when the performance obligations are met

We recognize revenue when the performance obligations specified in our contracts have been satisfied, after considering the impact of variable consideration and other factors that may affect the transaction price. Our contracts normally contain a single performance obligation that is fulfilled on the date of delivery or shipment based on shipping terms stipulated in the contract. We usually expect payment within 30 to 90 days from the shipping date, depending on our terms with the customer. None of our contracts as of June 30, 2022 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable.

To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method based on an analysis of historical experience and current facts and circumstances, which requires significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

Disaggregated Revenue

The following table presents revenues disaggregated by the major markets we serve:

	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Transportation	$	74,690	$	71,556	$	153,824	$	147,410
Industrial		41,402		32,448		81,409		62,075
Medical		17,030		12,802		32,897		24,078
Aerospace & Defense		11,860		12,779		24,547		24,449
Total	$	144,982	$	129,585	$	292,677	$	258,012

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Business Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Business Acquisitions

NOTE 3 – Business Acquisitions

TEWA Temperature Sensors SP. Zo.o. Acquisition

On February 28, 2022, we acquired 100% of the outstanding shares of TEWA Temperature Sensors SP. Zo.o. (“TEWA”). TEWA is a designer and manufacturer of high-quality temperature sensors. TEWA has complementary capabilities with our existing temperature sensing platform and the acquisition supports our end market diversification strategy by expanding our presence in Europe.

The purchase price, which includes assumed changes in working capital, of $24,484, net of cash acquired of $2,945, has been allocated to the fair values of assets and liabilities acquired as of February 28, 2022. The allocation of the purchase price continues to be preliminary pending the completion of the valuation of intangible assets and finalization of management's estimates. The final purchase price allocation may result in a materially different allocation than that recorded as of June 30, 2022.

The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:

	Fair Values at February 28, 2022
Current assets	$	6,451
Property, plant and equipment		2,177
Other assets		28
Goodwill		6,106
Intangible assets		12,503
Fair value of assets acquired		27,265
Less fair value of liabilities acquired		(2,781	)
Purchase price	$	24,484

Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes.

The Company recorded a $1,113 step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up is being amortized as a non-cash charge to cost of goods sold as the acquired inventory was sold with $580 recognized in the first quarter of 2022 and the remaining in the second quarter of 2022.

Intangible assets acquired have been assigned a provisional value of $12,503 and an estimated weighted average amortization period of 12 years. They are included as customer lists/relationships in our Condensed Consolidated Balance Sheets and subsequent notes. Due to the timing of the acquisition, the identification and valuation of all intangible assets remains incomplete; however, management used

historical experience and projections to estimate the potential value at June 30, 2022. The amount and assumptions included above remain an estimate that will be adjusted once purchase accounting is complete.

Ferroperm Piezoceramics A/S Acquisition

On June 30, 2022, we acquired 100% of the outstanding shares of Ferroperm Piezoceramics A/S (“Ferroperm”). Ferroperm specializes in the design and manufacture of high performance piezoceramic components for use in complex and demanding medical, industrial, and aerospace applications. Ferroperm has complementary capabilities with our existing medical diagnostics and imaging product lines. The acquisition supports our end market diversification strategy and expanding our presence in European end markets.

The purchase price of $72,044, which includes assumed changes in working capital, net of cash acquired of $5,578, has been allocated to the fair values of assets and liabilities acquired as of June 30, 2022. The allocation of the purchase price continues to be preliminary pending the completion of the valuation of intangible assets and finalization of management's estimates. The final purchase price allocation may result in a materially different allocation than that recorded as of June 30, 2022.

The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:

	Fair Values at June 30, 2022
Accounts Receivable	$	3,073
Inventory		6,848
Other current assets		1,001
Property, plant and equipment		3,953
Other assets		158
Goodwill		24,285
Intangible assets		36,393
Fair value of assets acquired		75,711
Less fair value of liabilities acquired		(3,667	)
Purchase price	$	72,044

Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes.

The Company recorded a $3,012 step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up will be amortized as a non-cash charge to cost of goods sold as the acquired inventory is sold.

Intangible assets acquired have been assigned a provisional value of $36,393 and an estimated weighted average amortization period of 12 years. They are included as customer lists/relationships in our Condensed Consolidated Balance Sheets and subsequent notes. Due to the timing of the acquisition, the identification and valuation of all intangible assets remains incomplete; however, management used historical experience and projections to estimate the potential value at June 30, 2022. The amount and assumptions included above remain an estimate that will be adjusted once purchase accounting is complete.

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Accounts Receivable, Net

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Accounts Receivable, Net

NOTE 4 – Accounts Receivable, net

The components of accounts receivable, net are as follows:

	As of
	June 30,			December 31,
	2022			2021
Accounts receivable, gross	$	100,260		$	83,848
Less: Allowance for credit losses		(1,311	)		(1,657	)
Accounts receivable, net	$	98,949		$	82,191

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Inventories, Net

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories, Net

NOTE 5 – Inventories, net

Inventories, net consists of the following:

	As of
	June 30,			December 31,
	2022			2021
Finished goods	$	15,476		$	11,955
Work-in-process		21,367			18,878
Raw materials		37,520			28,078
Less: Inventory reserves		(10,205	)		(9,405	)
Inventories, net	$	64,158		$	49,506

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Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

NOTE 6 – Property, Plant and Equipment, net

Property, plant and equipment, net is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Land and land improvements	$	1,100		$	1,095
Buildings and improvements		74,424			69,614
Machinery and equipment		250,718			247,708
Less: Accumulated depreciation		(226,605	)		(221,541	)
Property, plant and equipment, net	$	99,637		$	96,876

Depreciation expense for the six months ended June 30, 2022 and June 30, 2021 was $8,847 and $8,795, respectively.

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Retirement Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Retirement Plans

NOTE 7 – Retirement Plans

Pension Plans

Net pension expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows:

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Net pension expense	$	65	$	21,823	$	130	$	23,780

The components of net pension expense for our domestic and foreign plans include the following:

	Domestic Pension Plans					Foreign Pension Plans
	Three Months Ended					Three Months Ended
	June 30,		June 30,			June 30,			June 30,
	2022		2021			2022			2021
Service cost	$	—	$	—		$	6		$	6
Interest cost		5		1,218			4			4
Expected return on plan assets(1)		—		(1,058	)		(3	)		(3	)
Amortization of loss		8		1,550			45			43
Settlement charges		—		20,063			—			—
Total expense, net	$	13	$	21,773		$	52		$	50

(1)Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

	Domestic Pension Plans					Foreign Pension Plans
	Six Months Ended					Six Months Ended
	June 30,		June 30,			June 30,			June 30,
	2022		2021			2022			2021
Service cost	$	—	$	—		$	12		$	12
Interest cost		10		2,471			8			8
Expected return on plan assets(1)		—		(2,171	)		(6	)		(6	)
Amortization of loss		16		3,317			90			86
Settlement charges		—		20,063			—			—
Total expense, net	$	26	$	23,680		$	104		$	100

(1)Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

In February 2020, the Board of Directors authorized management to explore termination of the U.S.-based pension plan ("Plan"), subject to certain conditions. On June 1, 2020, we entered into the Fifth Amendment to the Plan whereby we set an effective termination date for the Plan of July 31, 2020. In February 2021, we received a determination letter from the Internal Revenue Service that allowed us to proceed with the termination process for the Plan. During the second quarter of 2021, the Company offered the option of receiving a lump sum payment to eligible participants with vested qualified Plan benefits in lieu of receiving monthly annuity payments. Approximately 365 participants elected to receive the settlement, and lump sum payments of approximately $35,594 were made from Plan assets to these participants in June 2021.

As required under U.S. GAAP, the Company recognizes a settlement gain or loss when the aggregate amount of lump-sum distributions to participants equals or exceeds the sum of the service and interest cost components of the net periodic pension cost. The amount of settlement gain or loss recognized is the pro rata amount of the existing unrealized gain or loss immediately prior to the settlement. In general, both the projected benefit obligation and fair value of plan assets are required to be remeasured in order to determine the settlement gain or loss.

Upon the partial settlement of the pension liability due to the lump sum offering in the second quarter of 2021, the Company recognized a non-cash and non-operating settlement charge of $20,063 related to pension losses, reclassified from accumulated other comprehensive loss to other income (expense) in the Company's Condensed Consolidated Statements of Earnings.

On July 29, 2021, the Plan purchased a group annuity contract that transferred our benefit obligations for approximately 2,700 CTS participants and beneficiaries in the United States (“Transferred Participants”). As part of the purchase of the group annuity contract, Plan benefit obligations and related annuity administration services for Transferred Participants were irrevocably assumed and guaranteed by the insurance company effective as of August 3, 2021. There will be no change to pension benefits for Transferred Participants. The purchase of the group annuity contract was fully funded directly by Plan assets.

As a result of the final settlement of the pension liability with the purchase of annuities, we reclassified the remaining related unrecognized pension losses of $106,206 that were previously recorded in accumulated other comprehensive loss to the Consolidated Statements of Earnings as a non-cash and non-operating settlement charge in the third quarter of 2021.

In January 2022, we transferred approximately $17,500 of funds from Plan assets to a qualified replacement plan (“QRP”) managed by the Company. The QRP requires that these assets be used to fund future annual Company contributions to our U.S. 401(k) program. The Plan assets of $33,860 as of June 30, 2022, will remain in the Plan until final administrative tasks are completed. This process is now expected to be completed in the third quarter of 2022, whereby the remaining Plan assets will liquidate and revert to CTS. At that time, the funds will be subject to income and excise taxes.

Other Post-retirement Benefit Plan

Net post-retirement expense for our other post-retirement plan includes the following components:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Service cost	$	—	$	—	$	—	$	—
Interest cost		26		20		52		43
Amortization of gain		—		—		—		—
Total expense, net	$	26	$	20	$	52	$	43

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

NOTE 8 – Goodwill and Other Intangible Assets

Other Intangible Assets

Other intangible assets, net consist of the following components:

	As of
	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer lists/relationships	$	144,735	$	(52,274	)	$	92,461
Technology and other intangibles		47,441		(27,078	)		20,363
Other intangible assets, net	$	192,176	$	(79,352	)	$	112,824
Amortization expense for the three months ended    June 30, 2022			$	2,536
Amortization expense for the six months ended    June 30, 2022			$	4,918

	As of
	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer lists/relationships	$	96,889	$	(49,213	)	$	47,676
Technology and other intangibles		47,441		(25,229	)		22,212
Other intangible assets, net	$	144,330	$	(74,442	)	$	69,888
Amortization expense for the three months ended    June 30, 2021			$	2,348
Amortization expense for the six months ended    June 30, 2021			$	4,717

Remaining amortization expense for other intangible assets as of June 30, 2022 is as follows:

	Amortization expense
2022	$	6,538
2023		11,107
2024		10,945
2025		10,723
2026		10,689
Thereafter		62,822
Total amortization expense	$	112,824

Goodwill

Changes in the net carrying amount of goodwill were as follows:

	Total
Goodwill as of December 31, 2021	$	109,798
Increase from acquisitions		30,381
Foreign exchange impact		(562	)
Goodwill as of June 30, 2022	$	139,617

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Costs Associated with Exit and Restructuring Activities

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring Activities

NOTE 9 – Costs Associated with Exit and Restructuring Activities

Restructuring charges are reported as a separate line within operating earnings in the Condensed Consolidated Statement of Earnings.

Total restructuring charges are as follows:

	Three Months Ended
	June 30, 2022		June 30, 2021
Restructuring charges	$	630	$	151

	Six Months Ended
	June 30, 2022		June 30, 2021
Restructuring charges	$	942	$	232

September 2020 Plan

In September 2020, we initiated a restructuring plan focused on optimizing our manufacturing footprint and improving operational efficiency by better utilizing our systems capabilities (the "September 2020 Plan"). This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions. The restructuring cost of the September 2020 Plan is now estimated to be in the range of $3,500 and $4,500, including workforce reduction charges, building and equipment relocation charges and other contract and asset-related costs. We have incurred $1,555 in program costs to date. We recorded $158 in workforce reduction costs during the three and six months ended June 30, 2022 under the 2020 Plan. Due to the robust market demand and COVID-19 limitations, some projects have been delayed. The total restructuring liability associated with these actions was $158 as of June 30, 2022. There was no liability related to the September 2020 Plan as of December 31, 2021.

Other Restructuring Activities

From time to time we undertake other restructuring activities that are not part of a formal plan. During the three and six months ended June 30, 2022, we incurred restructuring charges of $470 and $782, respectively. During the three and six months ended June 30, 2021, we incurred restructuring charges of $161 and $262, respectively. The total restructuring liability associated with these actions was $723 at June 30, 2022 and $962 at December 31, 2021.

The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the six months ended June 30, 2022:

Restructuring liability at January 1, 2022	$	962
Restructuring charges		942
Cost paid		(1,023	)
Other activity(1)		—
Restructuring liability at June 30, 2022	$	881

(1)Other activity includes the effects of currency translation, non-cash asset write-downs and other charges that do not flow through restructuring expense.

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Accrued Expenses and Other Liabilities

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities

NOTE 10 – Accrued Expenses and Other Liabilities

The components of accrued expenses and other liabilities are as follows:

	As of
	June 30,		December 31,
	2022		2021
Accrued product related costs	$	2,623	$	3,188
Accrued income taxes		7,843		6,761
Accrued property and other taxes		2,361		2,370
Accrued professional fees		1,698		1,629
Accrued customer related liabilities		4,767		3,254
Dividends payable		1,287		1,289
Remediation reserves		11,348		10,979
Derivative liabilities		—		437
Other accrued liabilities		4,244		6,811
Total accrued expenses and other liabilities	$	36,171	$	36,718

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

NOTE 11 – Commitments and Contingencies

Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently and formerly owned or operated by us. Two of those sites, Asheville, North Carolina and Mountain View, California, are designated National Priorities List sites under the U.S. Environmental Protection Agency’s Superfund program. We accrue a liability for probable remediation activities, claims and proceedings against us with respect to environmental matters if the amount can be reasonably estimated, and provide disclosures including the nature of a loss whenever it is probable or reasonably possible that a potentially material loss may have occurred but cannot be estimated. We record contingent loss accruals on an undiscounted basis.

A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Balance at beginning of period	$	10,979		$	10,642
Remediation expense		1,382			2,254
Net remediation payments		(1,019	)		(1,929	)
Other activity(1)		6			12
Balance at end of the period	$	11,348		$	10,979

(1)Other activity includes currency translation adjustments not recorded through remediation expense.

Unrelated to the environmental claims described above, certain other legal claims are pending against us with respect to matters arising out of the ordinary conduct of our business.

We provide product warranties when we sell our products and accrue for estimated liabilities at the time of sale. Warranty estimates are forecasts based on the best available information and historical claims experience. We accrue for specific warranty claims if we believe that the facts of a specific claim make it probable that a liability in excess of our historical experience has been or will be incurred, and provide disclosures for specific claims whenever it is reasonably possible that a material loss may be incurred which cannot be estimated.

We cannot provide assurance that the ultimate disposition of environmental, legal, and product warranty claims will not materially exceed the amount of our accrued losses and adversely impact our consolidated financial position, results of operations, or cash flows. Our accrued liabilities and disclosures will be adjusted accordingly if additional information becomes available in the future.

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

NOTE 12 - Debt

Long-term debt is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Total credit facility	$	400,000		$	400,000
Balance outstanding		91,027			50,000
Standby letters of credit		1,640			1,740
Amount available, subject to covenant restrictions	$	307,333		$	348,260
Weighted-average interest rate		1.57	%		1.16	%

On December 15, 2021, we entered into a second amended and restated five-year credit agreement with a group of banks (the “Revolving Credit Facility”) to (i) increase the total credit facility to $400,000, which may be increased by $200,000 at the request of the Company, subject to the administrative agent's approval, (ii) extend the maturity of the Revolving Credit Facility from February 12, 2024 to December 15, 2026, (iii) replace LIBOR with SOFR as the primary reference rate used to calculate interest on the loans under the Revolving Credit Facility, (iv) increase available sublimits for letters of credit, and swingline loans as well as providing for additional alternative currency borrowing capabilities, and (v) modify the financial and non-financial covenants to provide the Company additional flexibility.

Borrowings in U.S. dollars under the Revolving Credit Facility bear interest, at a per annum rate equal to the applicable Term SOFR rate (but not less than 0.0%), plus the Term SOFR adjustment, and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio. Similarly, borrowings of alternative currencies under the Revolving Credit Facility bear interest equal to a defined risk-free reference rate, plus the applicable risk-free rate adjustment and plus an applicable margin, which ranges from 1.00% to 1.75%, based on our net leverage ratio.

The Revolving Credit Facility includes a swing line sublimit of $20,000 and a letter of credit sublimit of $20,000. We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.175% to 0.25% based on our net leverage ratio. The Revolving Credit Facility requires, in addition to customary representations and warranties, that we comply with a maximum net leverage ratio and a minimum interest coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the Revolving Credit Facility. We were in compliance with all debt covenants at June 30, 2022. The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor certifications, and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the Revolving Credit Facility contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments.

We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt, which approximates the effective interest method. Amortization expense for the three and six months ended June 30, 2022 was $48 and $97, respectively. Amortization expense for the three and six months ended June 30, 2021 was $42 and $84, respectively. These costs are included in interest expense in our Consolidated Statements of Earnings.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 13 - Derivative Financial Instruments

Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts as well as interest rate and cross-currency swaps to manage our exposure to these risks.

The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements.

The effective portion of derivative gains and losses are recorded in accumulated other comprehensive loss until the hedged transaction affects earnings upon settlement, at which time they are reclassified to cost of goods sold or net sales. If it is probable that an anticipated hedged transaction will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from accumulated other comprehensive loss to other income (expense), net.

We assess hedge effectiveness qualitatively by verifying that the critical terms of the hedging instrument and the forecasted transaction continue to match, and that there have been no adverse developments that have increased the risk that the counterparty will default. No recognition of ineffectiveness was recorded in our Condensed Consolidated Statements of Earnings for the three and six months ended June 30, 2022.

Foreign Currency Hedges

We use forward contracts to mitigate currency risk related to a portion of our forecasted foreign currency revenues and costs. The currency forward contracts are designed as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheets at fair value.

We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At June 30, 2022, we had a net unrealized gain of $401 in accumulated other comprehensive (loss) income, all of which is expected to be reclassified to earnings within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $9,379 at June 30, 2022.

Interest Rate Swaps

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest to a fixed rate. As of June 30, 2022, we have agreements to fix interest rates on $50,000 of long-term debt until December 2026. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled.

These swaps are treated as cash flow hedges and consequently, the changes in fair value are recorded in other comprehensive (loss) income. The estimated net amount of the existing gains that are reported in accumulated other comprehensive (loss) income that are expected to be reclassified into earnings within the next twelve months is approximately $523.

Cross-Currency Swap

The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. On June 27, 2022, the Company entered into a cross currency interest rate swap agreement that synthetically swapped $25,000 of variable rate debt to Krone denominated variable rate debt. Upon completion of the Ferroperm acquisition on June 30, 2022, the transaction was designated as a net investment hedge for accounting purposes and will mature on June 30, 2027.

Accordingly, any gains or losses on this derivative instrument will be included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted or liquidated. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense in the Condensed Consolidated Statements of Earnings. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Krone to United States Dollar exchange rate market.

Prior to designation as a net investment hedge, a gain of $111 was recorded in other expense within the Condensed Consolidated Statements of Earnings for three and six months ended June 30, 2022.

The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2022, are shown in the following table:

	As of
	June 30,		December 31,
	2022		2021
Interest rate swaps reported in Other current assets	$	679	$	—
Interest rate swaps reported in Other assets	$	684	$	—
Interest rate swaps reported in Accrued Expenses and other liabilities	$	—	$	(437	)
Interest rate swaps reported in Other long-term obligations	$	—	$	(353	)
Foreign currency hedges reported in Other current assets	$	514	$	135
Net investment hedge reported in Other assets	$	111	$	—

The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were foreign currency derivative assets of $514 and foreign currency derivative liabilities of $0 at June 30, 2022.

The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Foreign Exchange Contracts:
Amounts reclassified from AOCI to earnings:
Cost of goods sold		162			329			308			550
Total gain reclassified from AOCI to earnings		162			329			308			550
Total derivative gain on foreign exchange contracts recognized in earnings	$	162		$	329		$	308		$	550
Interest Rate Swaps:
Income (expense) recorded in Interest expense	$	(101	)	$	(187	)	$	(273	)	$	(363	)
Total net gains on derivatives	$	61		$	142		$	35		$	187

Derivative Contracts Not Designated as Hedges

In the second quarter of 2022, the Company used derivative contracts to manage foreign currency exchange risk related to funds to be used for the purchase price of the Ferroperm acquisition. These contracts were not designated as hedges and therefore changes in the fair values of these instruments were recognized directly in earnings. All contracts were settled in conjunction with the acquisition. As a result of these contracts, the Company recognized a $1,776 loss in other expense in the Condensed Consolidated Statements of Earnings.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

NOTE 14 – Accumulated Other Comprehensive Loss

Shareholders’ equity includes certain items classified as accumulated other comprehensive loss (“AOCI”) in the Condensed Consolidated Balance Sheets, including:

•Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 13 - Derivative Financial Instruments and Note 17 – Fair Value Measurements.

•Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense). Further information related to our pension obligations is included in Note 7 – Retirement Plans.

•Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income.

Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction losses for the three and six months ended June 30, 2022 were $3,817 and $3,529, respectively. Transaction losses and (gains) for the three and six months ended June 30, 2021 were $928 and $(401), respectively. The impact of these changes have been included in other income (expense) in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive loss for the three months ended June 30, 2022 are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2022			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	969		$	976		$	(61	)	$	1,884
Income tax benefit (expense)		(221	)		(224	)		14			(431	)
Net		748			752			(47	)		1,453
Changes in unrealized pension cost:
Gross		(2,624	)		1,977			143			(504	)
Income tax benefit (expense)		712			—			(38	)		674
Net		(1,912	)		1,977			105			170
Cumulative translation adjustment:
Gross		(2,281	)		(2,012	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,281	)		(2,012	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(3,445	)	$	717		$	58		$	(2,670	)

The components of accumulated other comprehensive loss for the three months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(877	)	$	490		$	(142	)	$	(529	)
Income tax (expense) benefit		203			(113	)		33			123
Net		(674	)		377			(109	)		(406	)
Changes in unrealized pension cost:
Gross		(126,157	)		499			21,606			(104,052	)
Income tax benefit (expense)		34,492			(115	)		(4,966	)		29,411
Net		(91,665	)		384			16,640			(74,641	)
Cumulative translation adjustment:
Gross		(2,024	)		1			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,024	)		1			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(94,363	)	$	762		$	16,531		$	(77,070	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2022, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	(635	)	$	2,554			(35	)	$	1,884
Income tax (expense) benefit		147			(587	)		9			(431	)
Net		(488	)		1,967			(26	)		1,453
Changes in unrealized pension cost:
Gross		(2,744	)		1,977			263			(504	)
Income tax benefit (expense)		738			—			(64	)		674
Net		(2,006	)		1,977			199			170
Cumulative translation adjustment:
Gross		(2,032	)		(2,261	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,032	)		(2,261	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(4,526	)	$	1,683		$	173		$	(2,670	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2020			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(1,038	)	$	696			(187	)	$	(529	)
Income tax (expense) benefit		240			(160	)		43			123
Net		(798	)		536			(144	)		(406	)
Changes in unrealized pension cost:
Gross		(128,004	)		499			23,453			(104,052	)
Income tax benefit (expense)		34,917			(115	)		(5,391	)		29,411
Net		(93,087	)		384			18,062			(74,641	)
Cumulative translation adjustment:
Gross		(2,036	)		13			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,036	)		13			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(95,921	)	$	933		$	17,918		$	(77,070	)

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Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Shareholders' Equity

NOTE 15 – Shareholders’ Equity

Share count and par value data related to shareholders’ equity are as follows:

	As of
	June 30,		December 31,
	2022		2021
Preferred Stock
Par value per share	No par value		No par value
Shares authorized		25,000,000		25,000,000
Shares outstanding		—		—
Common Stock
Par value per share	No par value		No par value
Shares authorized		75,000,000		75,000,000
Shares issued		57,310,174		57,245,060
Shares outstanding		31,911,401		32,178,715
Treasury stock
Shares held		25,398,773		25,066,345

On May 13, 2021, the Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50,000 of the Company’s common stock. The repurchase program has no set expiration date and replaces the repurchase program approved by the Board of Directors on February 7, 2019. During the three and six months ended June 30, 2022, 216,252 and 332,428 shares of common stock were repurchased for $7,748 and $11,668, respectively. During the three and six months ended June 30, 2021, there were no shares of common stock that were repurchased. As of June 30, 2022, approximately $29,546 remains available for future purchases.

A roll-forward of common shares outstanding is as follows:

	Six months ended
	June 30,			June 30,
	2022			2021
Balance at the beginning of the year		32,178,715			32,276,787
Repurchases		(332,428	)		—
Restricted share issuances		65,114			158,969
Balance at the end of the period		31,911,401			32,435,756

Certain potentially dilutive restricted stock units are excluded from diluted earnings per share because they are anti-dilutive. The number of outstanding awards that were anti-dilutive for the three months ended June 30, 2022 and 2021 were 2,500 and 93, respectively. The number of outstanding awards that were anti-dilutive for the six months ended June 30, 2022 and 2021 were 2,500 and 46,810, respectively

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

NOTE 16- Stock-Based Compensation

At June 30, 2022, we had five active stock-based compensation plans: the Non-Employee Directors’ Stock Retirement Plan (“Directors’ Plan”), the 2004 Omnibus Long-Term Incentive Plan (“2004 Plan”), the 2009 Omnibus Equity and Performance Incentive Plan (“2009 Plan”), the 2014 Performance and Incentive Compensation Plan (“2014 Plan”), and the 2018 Equity and Incentive Compensation Plan ("2018 Plan"). Future grants can only be made under the 2018 Plan.

These plans allow for grants of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares, performance units, and other stock awards subject to the terms of the specific plans under which the awards are granted.

The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans:

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Service-based RSUs	$	691	$	738	$	1,368	$	1,425
Performance-based RSUs		820		1,066		2,041		1,559
Cash-settled RSUs		105		99		157		138
Total	$	1,616	$	1,903	$	3,566	$	3,122
Income tax benefit		372		438		820		718
Net expense	$	1,244	$	1,465	$	2,746	$	2,404

The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized:

	Unrecognized
	Compensation		Weighted-
	Expense at		Average
	June 30, 2022		Period (years)
Service-based RSUs	$	2,711		1.44
Performance-based RSUs		5,117		1.89
Total	$	7,828		1.73

We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards.

The following table summarizes the status of these plans as of June 30, 2022:

	2018 Plan		2014 Plan		2009 Plan		2004 Plan		Directors' Plan
Awards originally available		2,500,000		1,500,000		3,400,000		6,500,000	N/A
Maximum potential awards outstanding		716,826		35,100		45,200		14,545		4,722
RSUs and cash settled awards vested and released		117,828		—		—		—		—
Awards available for grant		1,665,346		—		—		—		—

Service-Based Restricted Stock Units

The following table summarizes the service-based RSU activity for the three months ended June 30, 2022:

	Units			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		283,216		$	24.91
Granted		68,124			33.70
Vested and released		(58,144	)		29.96
Forfeited		(7,838	)		30.35
Outstanding at June 30, 2022		285,358		$	25.83
Releasable at June 30, 2022		132,834		$	17.55

Performance and Market-Based Restricted Stock Units

The following table summarizes the performance and market-based RSU activity for the three months ended June 30, 2022:

	Units			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		237,767		$	31.35
Granted		81,702			37.15
Attained by performance		5,136			29.50
Released		(51,848	)		30.64
Forfeited		(14,351	)		32.62
Outstanding at June 30, 2022		258,406		$	33.20
Releasable at June 30, 2022		—		$	—

Cash-Settled Restricted Stock Units

Cash-Settled RSUs entitle the holder to receive the cash equivalent of one share of common stock for each unit when the unit vests. These RSUs are issued to key employees residing in foreign locations as direct compensation. Generally, these RSUs vest over a three-year period. Cash-Settled RSUs are classified as liabilities and are remeasured at each reporting date until settled. At June 30, 2022 and December 31, 2021, we had 46,524 and 32,085 cash-settled RSUs outstanding, respectively. At June 30, 2022 and December 31, 2021, liabilities of $299 and $400, respectively, were included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheets.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 17 — Fair Value Measurements

The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2022:

	Asset (Liability) Carrying Value at June 30, 2022			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	1,363		$	—	$	1,363	$	—
Foreign currency hedges	$	514		$	—	$	514	$	—
Cross-currency swap	$	111		$	—	$	111	$	—
Qualified replacement plan assets	$	16,149		$	16,149	$	—	$	—
Contingent consideration	$	(300	)	$	—	$	—	$	(300	)

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2021:

	(Liability) Asset Carrying Value at December 31, 2021			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(790	)	$	—	$	(790	)	$	—
Foreign currency hedges	$	135		$	—	$	135		$	—
Contingent consideration	$	(1,200	)	$	—	$	—		$	(1,200	)

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. The Company entered into a cross currency swap agreement in order to manage its exposure to changes in interest rates related to foreign debt. These derivative financial instruments are measured at fair value on a recurring basis. The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but that market is not active and therefore they are classified within Level 2 of the fair value hierarchy.

The fair value of the contingent consideration requires significant judgment. The Company's fair value estimates used in the contingent consideration valuation are considered Level 3 fair value measurements. The fair value estimates were based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and timing of events and activities that are expected to take place.

A roll-forward of the contingent consideration is as follows:

	Contingent Consideration
Balance at December 31, 2021	$	1,200
Settled in cash		(900	)
Balance at June 30, 2022 in accrued expenses and other liabilities	$	300

Our long-term debt consists of the Revolving Credit Facility, which is recorded at its carrying value. There is a readily determinable market for our long-term debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility.

The QRP assets consist of investment funds maintained for future contributions to the Company’s U.S. 401(k) program. See Note 7 for further information on the QRP. The investments are Level 1 marketable securities and are recorded in Other assets on our Condensed Consolidated Balance Sheets.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 18 — Income Taxes

The effective tax rates for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Effective tax rate		25.6	%		245.6	%		23.0	%		9.3	%

Our effective income tax rate was 25.6% and 245.6% in the second quarters of 2022 and 2021, respectively. The decrease in effective income tax is primarily attributed to a one-time non-cash settlement expense related to lump sum payments for the CTS Corporation U.S. pension plan that occurred in the second quarter of 2021. The second quarter 2022 effective income tax rate was higher than the U.S. statutory federal tax rate primarily due to the impact of foreign withholding taxes and state taxes. The second quarter 2021 effective tax rate was higher, primarily due to the one-time non-cash settlement expense in the U.S. pension plan outlined above.

Our effective income tax rate was 23.0% and 9.3% in the first half of 2022 and 2021, respectively. The increase is primarily attributed to a one-time non-cash settlement expense related to lump sum payments made for the CTS Corporation U.S. pension plan that occurred in Q2 2021. The tax rate in the first half of 2022 was higher than the U.S. statutory federal tax rate primarily due to the impact of foreign withholding taxes and state taxes. The tax rate in the first half of 2021 was lower than the U.S. statutory federal tax rate, primarily due to the one-time non-cash settlement expense in the U.S. pension plan outlined above.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings.

There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Summary of Disaggregated Revenues

The following table presents revenues disaggregated by the major markets we serve:

	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Transportation	$	74,690	$	71,556	$	153,824	$	147,410
Industrial		41,402		32,448		81,409		62,075
Medical		17,030		12,802		32,897		24,078
Aerospace & Defense		11,860		12,779		24,547		24,449
Total	$	144,982	$	129,585	$	292,677	$	258,012

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Business Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

TEWA Temperature Sennsors SP.Zo.o.

Business Acquisition [Line Items]

Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:

	Fair Values at February 28, 2022
Current assets	$	6,451
Property, plant and equipment		2,177
Other assets		28
Goodwill		6,106
Intangible assets		12,503
Fair value of assets acquired		27,265
Less fair value of liabilities acquired		(2,781	)
Purchase price	$	24,484

Ferroperm Piezoceramics A/S Acquisition

Business Acquisition [Line Items]

Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:

	Fair Values at June 30, 2022
Accounts Receivable	$	3,073
Inventory		6,848
Other current assets		1,001
Property, plant and equipment		3,953
Other assets		158
Goodwill		24,285
Intangible assets		36,393
Fair value of assets acquired		75,711
Less fair value of liabilities acquired		(3,667	)
Purchase price	$	72,044

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Accounts Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Components of Accounts Receivable, Net

The components of accounts receivable, net are as follows:

	As of
	June 30,			December 31,
	2022			2021
Accounts receivable, gross	$	100,260		$	83,848
Less: Allowance for credit losses		(1,311	)		(1,657	)
Accounts receivable, net	$	98,949		$	82,191

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Inventories, Net (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Summary of Inventories, Net

Inventories, net consists of the following:

	As of
	June 30,			December 31,
	2022			2021
Finished goods	$	15,476		$	11,955
Work-in-process		21,367			18,878
Raw materials		37,520			28,078
Less: Inventory reserves		(10,205	)		(9,405	)
Inventories, net	$	64,158		$	49,506

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Property, Plant and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment, Net

Property, plant and equipment, net is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Land and land improvements	$	1,100		$	1,095
Buildings and improvements		74,424			69,614
Machinery and equipment		250,718			247,708
Less: Accumulated depreciation		(226,605	)		(221,541	)
Property, plant and equipment, net	$	99,637		$	96,876

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Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2022

Pension Plans

Defined Benefit Plan Disclosure [Line Items]

Net Pension Expense or Postretirement Expense

Net pension expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows:

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Net pension expense	$	65	$	21,823	$	130	$	23,780

The components of net pension expense for our domestic and foreign plans include the following:

	Domestic Pension Plans					Foreign Pension Plans
	Three Months Ended					Three Months Ended
	June 30,		June 30,			June 30,			June 30,
	2022		2021			2022			2021
Service cost	$	—	$	—		$	6		$	6
Interest cost		5		1,218			4			4
Expected return on plan assets(1)		—		(1,058	)		(3	)		(3	)
Amortization of loss		8		1,550			45			43
Settlement charges		—		20,063			—			—
Total expense, net	$	13	$	21,773		$	52		$	50

(1)Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

	Domestic Pension Plans					Foreign Pension Plans
	Six Months Ended					Six Months Ended
	June 30,		June 30,			June 30,			June 30,
	2022		2021			2022			2021
Service cost	$	—	$	—		$	12		$	12
Interest cost		10		2,471			8			8
Expected return on plan assets(1)		—		(2,171	)		(6	)		(6	)
Amortization of loss		16		3,317			90			86
Settlement charges		—		20,063			—			—
Total expense, net	$	26	$	23,680		$	104		$	100

(1)Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

Other Postretirement Benefits Plan

Defined Benefit Plan Disclosure [Line Items]

Net Pension Expense or Postretirement Expense

Net post-retirement expense for our other post-retirement plan includes the following components:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Service cost	$	—	$	—	$	—	$	—
Interest cost		26		20		52		43
Amortization of gain		—		—		—		—
Total expense, net	$	26	$	20	$	52	$	43

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Other Intangible Assets

Other intangible assets, net consist of the following components:

	As of
	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer lists/relationships	$	144,735	$	(52,274	)	$	92,461
Technology and other intangibles		47,441		(27,078	)		20,363
Other intangible assets, net	$	192,176	$	(79,352	)	$	112,824
Amortization expense for the three months ended    June 30, 2022			$	2,536
Amortization expense for the six months ended    June 30, 2022			$	4,918

	As of
	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer lists/relationships	$	96,889	$	(49,213	)	$	47,676
Technology and other intangibles		47,441		(25,229	)		22,212
Other intangible assets, net	$	144,330	$	(74,442	)	$	69,888
Amortization expense for the three months ended    June 30, 2021			$	2,348
Amortization expense for the six months ended    June 30, 2021			$	4,717

Summary of Amortization Expense Remaining for Other Intangible Assets

Remaining amortization expense for other intangible assets as of June 30, 2022 is as follows:

	Amortization expense
2022	$	6,538
2023		11,107
2024		10,945
2025		10,723
2026		10,689
Thereafter		62,822
Total amortization expense	$	112,824

Summary Changes in Net Carrying Amount of Goodwill

Changes in the net carrying amount of goodwill were as follows:

	Total
Goodwill as of December 31, 2021	$	109,798
Increase from acquisitions		30,381
Foreign exchange impact		(562	)
Goodwill as of June 30, 2022	$	139,617

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Costs Associated with Exit and Restructuring Activities (Tables)

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges

Total restructuring charges are as follows:

	Three Months Ended
	June 30, 2022		June 30, 2021
Restructuring charges	$	630	$	151

	Six Months Ended
	June 30, 2022		June 30, 2021
Restructuring charges	$	942	$	232

Schedule of Restructuring Liability Activity

The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the six months ended June 30, 2022:

Restructuring liability at January 1, 2022	$	962
Restructuring charges		942
Cost paid		(1,023	)
Other activity(1)		—
Restructuring liability at June 30, 2022	$	881

(1)Other activity includes the effects of currency translation, non-cash asset write-downs and other charges that do not flow through restructuring expense.

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Accrued Expenses and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Components of Accrued Expenses and Other Liabilities

The components of accrued expenses and other liabilities are as follows:

	As of
	June 30,		December 31,
	2022		2021
Accrued product related costs	$	2,623	$	3,188
Accrued income taxes		7,843		6,761
Accrued property and other taxes		2,361		2,370
Accrued professional fees		1,698		1,629
Accrued customer related liabilities		4,767		3,254
Dividends payable		1,287		1,289
Remediation reserves		11,348		10,979
Derivative liabilities		—		437
Other accrued liabilities		4,244		6,811
Total accrued expenses and other liabilities	$	36,171	$	36,718

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities

A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Balance at beginning of period	$	10,979		$	10,642
Remediation expense		1,382			2,254
Net remediation payments		(1,019	)		(1,929	)
Other activity(1)		6			12
Balance at end of the period	$	11,348		$	10,979

(1)Other activity includes currency translation adjustments not recorded through remediation expense.

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt is comprised of the following:

	As of
	June 30,			December 31,
	2022			2021
Total credit facility	$	400,000		$	400,000
Balance outstanding		91,027			50,000
Standby letters of credit		1,640			1,740
Amount available, subject to covenant restrictions	$	307,333		$	348,260
Weighted-average interest rate		1.57	%		1.16	%

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Location and Fair Values of Derivative Instruments

The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2022, are shown in the following table:

	As of
	June 30,		December 31,
	2022		2021
Interest rate swaps reported in Other current assets	$	679	$	—
Interest rate swaps reported in Other assets	$	684	$	—
Interest rate swaps reported in Accrued Expenses and other liabilities	$	—	$	(437	)
Interest rate swaps reported in Other long-term obligations	$	—	$	(353	)
Foreign currency hedges reported in Other current assets	$	514	$	135
Net investment hedge reported in Other assets	$	111	$	—

Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings

The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Foreign Exchange Contracts:
Amounts reclassified from AOCI to earnings:
Cost of goods sold		162			329			308			550
Total gain reclassified from AOCI to earnings		162			329			308			550
Total derivative gain on foreign exchange contracts recognized in earnings	$	162		$	329		$	308		$	550
Interest Rate Swaps:
Income (expense) recorded in Interest expense	$	(101	)	$	(187	)	$	(273	)	$	(363	)
Total net gains on derivatives	$	61		$	142		$	35		$	187

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss for the three months ended June 30, 2022 are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2022			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	969		$	976		$	(61	)	$	1,884
Income tax benefit (expense)		(221	)		(224	)		14			(431	)
Net		748			752			(47	)		1,453
Changes in unrealized pension cost:
Gross		(2,624	)		1,977			143			(504	)
Income tax benefit (expense)		712			—			(38	)		674
Net		(1,912	)		1,977			105			170
Cumulative translation adjustment:
Gross		(2,281	)		(2,012	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,281	)		(2,012	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(3,445	)	$	717		$	58		$	(2,670	)

The components of accumulated other comprehensive loss for the three months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(877	)	$	490		$	(142	)	$	(529	)
Income tax (expense) benefit		203			(113	)		33			123
Net		(674	)		377			(109	)		(406	)
Changes in unrealized pension cost:
Gross		(126,157	)		499			21,606			(104,052	)
Income tax benefit (expense)		34,492			(115	)		(4,966	)		29,411
Net		(91,665	)		384			16,640			(74,641	)
Cumulative translation adjustment:
Gross		(2,024	)		1			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,024	)		1			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(94,363	)	$	762		$	16,531		$	(77,070	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2022, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	(635	)	$	2,554			(35	)	$	1,884
Income tax (expense) benefit		147			(587	)		9			(431	)
Net		(488	)		1,967			(26	)		1,453
Changes in unrealized pension cost:
Gross		(2,744	)		1,977			263			(504	)
Income tax benefit (expense)		738			—			(64	)		674
Net		(2,006	)		1,977			199			170
Cumulative translation adjustment:
Gross		(2,032	)		(2,261	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,032	)		(2,261	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(4,526	)	$	1,683		$	173		$	(2,670	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2020			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(1,038	)	$	696			(187	)	$	(529	)
Income tax (expense) benefit		240			(160	)		43			123
Net		(798	)		536			(144	)		(406	)
Changes in unrealized pension cost:
Gross		(128,004	)		499			23,453			(104,052	)
Income tax benefit (expense)		34,917			(115	)		(5,391	)		29,411
Net		(93,087	)		384			18,062			(74,641	)
Cumulative translation adjustment:
Gross		(2,036	)		13			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,036	)		13			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(95,921	)	$	933		$	17,918		$	(77,070	)

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Summary of Share Count and Par Value Data Related to Shareholders' Equity

Share count and par value data related to shareholders’ equity are as follows:

	As of
	June 30,		December 31,
	2022		2021
Preferred Stock
Par value per share	No par value		No par value
Shares authorized		25,000,000		25,000,000
Shares outstanding		—		—
Common Stock
Par value per share	No par value		No par value
Shares authorized		75,000,000		75,000,000
Shares issued		57,310,174		57,245,060
Shares outstanding		31,911,401		32,178,715
Treasury stock
Shares held		25,398,773		25,066,345

Summary of Common Shares Outstanding

A roll-forward of common shares outstanding is as follows:

	Six months ended
	June 30,			June 30,
	2022			2021
Balance at the beginning of the year		32,178,715			32,276,787
Repurchases		(332,428	)		—
Restricted share issuances		65,114			158,969
Balance at the end of the period		31,911,401			32,435,756

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Compensation Expense

The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans:

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
Service-based RSUs	$	691	$	738	$	1,368	$	1,425
Performance-based RSUs		820		1,066		2,041		1,559
Cash-settled RSUs		105		99		157		138
Total	$	1,616	$	1,903	$	3,566	$	3,122
Income tax benefit		372		438		820		718
Net expense	$	1,244	$	1,465	$	2,746	$	2,404

Summary of Unrecognized Compensation Expense related to Non-Vested RSUs

The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized:

	Unrecognized
	Compensation		Weighted-
	Expense at		Average
	June 30, 2022		Period (years)
Service-based RSUs	$	2,711		1.44
Performance-based RSUs		5,117		1.89
Total	$	7,828		1.73

Summary of Status of Plans

The following table summarizes the status of these plans as of June 30, 2022:

	2018 Plan		2014 Plan		2009 Plan		2004 Plan		Directors' Plan
Awards originally available		2,500,000		1,500,000		3,400,000		6,500,000	N/A
Maximum potential awards outstanding		716,826		35,100		45,200		14,545		4,722
RSUs and cash settled awards vested and released		117,828		—		—		—		—
Awards available for grant		1,665,346		—		—		—		—

Summary of Service-Based Restricted Stock Units

The following table summarizes the service-based RSU activity for the three months ended June 30, 2022:

	Units			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		283,216		$	24.91
Granted		68,124			33.70
Vested and released		(58,144	)		29.96
Forfeited		(7,838	)		30.35
Outstanding at June 30, 2022		285,358		$	25.83
Releasable at June 30, 2022		132,834		$	17.55

Summary of Performance and Market Based RSUs

The following table summarizes the performance and market-based RSU activity for the three months ended June 30, 2022:

	Units			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		237,767		$	31.35
Granted		81,702			37.15
Attained by performance		5,136			29.50
Released		(51,848	)		30.64
Forfeited		(14,351	)		32.62
Outstanding at June 30, 2022		258,406		$	33.20
Releasable at June 30, 2022		—		$	—

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2022:

	Asset (Liability) Carrying Value at June 30, 2022			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	1,363		$	—	$	1,363	$	—
Foreign currency hedges	$	514		$	—	$	514	$	—
Cross-currency swap	$	111		$	—	$	111	$	—
Qualified replacement plan assets	$	16,149		$	16,149	$	—	$	—
Contingent consideration	$	(300	)	$	—	$	—	$	(300	)

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2021:

	(Liability) Asset Carrying Value at December 31, 2021			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(790	)	$	—	$	(790	)	$	—
Foreign currency hedges	$	135		$	—	$	135		$	—
Contingent consideration	$	(1,200	)	$	—	$	—		$	(1,200	)

Roll-forward of the Contingent Consideration

A roll-forward of the contingent consideration is as follows:

	Contingent Consideration
Balance at December 31, 2021	$	1,200
Settled in cash		(900	)
Balance at June 30, 2022 in accrued expenses and other liabilities	$	300

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate

The effective tax rates for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Effective tax rate		25.6	%		245.6	%		23.0	%		9.3	%

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Revenue Recognition - Summary of Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 144,982	$ 129,585	$ 292,677	$ 258,012
Transportation
Disaggregation of Revenue [Line Items]
Revenues	74,690	71,556	153,824	147,410
Industrial
Disaggregation of Revenue [Line Items]
Revenues	41,402	32,448	81,409	62,075
Medical
Disaggregation of Revenue [Line Items]
Revenues	17,030	12,802	32,897	24,078
Aerospace and Defense
Disaggregation of Revenue [Line Items]
Revenues	$ 11,860	$ 12,779	$ 24,547	$ 24,449

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Business Acquisitions - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended
	Jun. 30, 2022	Feb. 28, 2022	Mar. 31, 2022
TEWA Temperature Sennsors SP.Zo.o.
Business Acquisition [Line Items]
Percentage of outstanding shares acquired		100.00%
Purchase price of fair values of assets and liabilities acquired		$ 24,484
Cash acquired from acquisition		2,945
Inventory		1,113
TEWA Temperature Sennsors SP.Zo.o. | Customer Lists/Relationships
Business Acquisition [Line Items]
Intangible assets provisional value		$ 12,503
Estimated weighted average amortization period		12 years
TEWA Temperature Sennsors SP.Zo.o. | Cost of Goods Sold
Business Acquisition [Line Items]
Non-cash charge			$ 580
Ferroperm Piezoceramics A/S Acquisition
Business Acquisition [Line Items]
Percentage of outstanding shares acquired	100.00%
Purchase price of fair values of assets and liabilities acquired	$ 72,044
Cash acquired from acquisition	5,578
Inventory	3,012
Intangible assets provisional value	$ 36,393
Estimated weighted average amortization period	12 years

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Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Feb. 28, 2022	Dec. 31, 2021
Fair Values
Goodwill	$ 139,617		$ 109,798
TEWA Temperature Sennsors SP.Zo.o.
Fair Values
Current assets		$ 6,451
Property, plant and equipment		2,177
Other assets		28
Goodwill		6,106
Intangible assets		12,503
Fair value of assets acquired		27,265
Less fair value of liabilities acquired		(2,781)
Purchase price		$ 24,484
Ferroperm Piezoceramics A/S Acquisition
Fair Values
Accounts Receivable	3,073
Inventory	6,848
Other current assets	1,001
Property, plant and equipment	3,953
Other assets	158
Goodwill	24,285
Intangible assets	36,393
Fair value of assets acquired	75,711
Less fair value of liabilities acquired	(3,667)
Purchase price	$ 72,044

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Accounts Receivable, Net - Components of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable, gross	$ 100,260	$ 83,848
Less: Allowance for credit losses	(1,311)	(1,657)
Accounts receivable, net	$ 98,949	$ 82,191

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Inventories, Net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 15,476	$ 11,955
Work-in-process	21,367	18,878
Raw materials	37,520	28,078
Less: Inventory reserves	(10,205)	(9,405)
Inventories, net	$ 64,158	$ 49,506

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Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Less: Accumulated depreciation	$ (226,605)	$ (221,541)
Property, plant and equipment, net	99,637	96,876
Land and Land Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	1,100	1,095
Buildings and Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	74,424	69,614
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 250,718	$ 247,708

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Property, Plant and Equipment, Net - Additional Information - (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 8,847	$ 8,795

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Retirement Plans - Net Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Net pension expense	$ 65	$ 21,823	$ 130	$ 23,780

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Retirement Plans - Net Pension Expense Domestic and Foreign (Details) - Pension Plans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net pension expense (income)
Total expense, net	$ 65	$ 21,823	$ 130	$ 23,780
UNITED STATES
Net pension expense (income)
Service cost	0	0	0	0
Interest cost	5	1,218	10	2,471
Expected return on plan assets	0	(1,058)	0	(2,171)
Amortization of loss	8	1,550	16	3,317
Settlement charges	0	20,063	0	20,063
Total expense, net	13	21,773	26	23,680
Foreign Plan
Net pension expense (income)
Service cost	6	6	12	12
Interest cost	4	4	8	8
Expected return on plan assets	(3)	(3)	(6)	(6)
Amortization of loss	45	43	90	86
Settlement charges	0	0	0	0
Total expense, net	$ 52	$ 50	$ 104	$ 100

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Retirement Plans - Additional Information (Details) $ in Thousands		1 Months Ended	3 Months Ended	6 Months Ended
	Jan. 01, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($) Participant	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jul. 29, 2021 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Benefit obligations							$ 2,700
Remaining unrecognized pension losses reclassified in accumulated other comprehensive loss						$ 106,206
Defined benefit plan, plan assets transferred to (from) plan	$ 17,500
Prepaid pension asset				$ 33,860	$ 49,382
Pension Plans | UNITED STATES
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, termination process description				In February 2021, we received a determination letter from the Internal Revenue Service that allowed us to proceed with the termination process for the Plan. During the second quarter of 2021, the Company offered the option of receiving a lump sum payment to eligible participants with vested qualified Plan benefits in lieu of receiving monthly annuity payments.
Number of participants elected to receive settlement | Participant			365
Lump sum payments from plan assets		$ 35,594
Non-operating settlement charge			$ 20,063

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Retirement Plans - Other Postretirement Benefit Plan (Details) - Other Postretirement Benefits Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	26	20	52	43
Amortization of gain	0	0	0	0
Total expense, net	$ 26	$ 20	$ 52	$ 43

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Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 192,176		$ 192,176		$ 144,330
Accumulated Amortization	(79,352)		(79,352)		(74,442)
Net Amount	112,824		112,824		69,888
Amortization expense	2,536	$ 2,348	4,918	$ 4,717
Customer Lists/Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	144,735		144,735		96,889
Accumulated Amortization	(52,274)		(52,274)		(49,213)
Net Amount	92,461		92,461		47,676
Technology and Other Intangibles
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	47,441		47,441		47,441
Accumulated Amortization	(27,078)		(27,078)		(25,229)
Net Amount	$ 20,363		$ 20,363		$ 22,212

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Goodwill and Other Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule
2022	$ 6,538
2023	11,107
2024	10,945
2025	10,723
2026	10,689
Thereafter	62,822
Net Amount	$ 112,824	$ 69,888

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Goodwill and Other Intangible Assets - Summary Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill Roll Forward
Beginning balance	$ 109,798
Increase from acquisitions	30,381
Foreign exchange impact	(562)
Ending balance	$ 139,617

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Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restructuring and Related Activities [Abstract]
Restructuring charges	$ 630	$ 151	$ 942	$ 232

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Costs Associated with Exit and Restructuring Activities -Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		22 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2020
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 630,000	$ 151,000	$ 942,000	$ 232,000
Restructuring reserve	881,000		881,000		$ 881,000	$ 962,000
Exit and Disposal Activities, Building and Equipment Relocation and Workforce Reduction
Restructuring Cost And Reserve [Line Items]
Restructuring charges	470,000	$ 161,000	782,000	$ 262,000
Restructuring reserve	723,000		723,000		723,000	962,000
September 2020 Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges	158,000		158,000		1,555,000
Restructuring reserve	$ 158,000		$ 158,000		$ 158,000	$ 0
September 2020 Plan | Minimum
Restructuring Cost And Reserve [Line Items]
Restructuring and related cost, expected cost of plan							$ 3,500,000
September 2020 Plan | Maximum
Restructuring Cost And Reserve [Line Items]
Restructuring and related cost, expected cost of plan							$ 4,500,000

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Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Liability Activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restructuring and Related Activities [Abstract]
Restructuring liability			$ 962
Restructuring charges	$ 630	$ 151	942	$ 232
Other activity			(1,023)
Restructuring liability	$ 881		$ 881

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Accrued Expenses and Other Liabilities - Components of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued product related costs	$ 2,623	$ 3,188
Accrued income taxes	7,843	6,761
Accrued property and other taxes	2,361	2,370
Accrued professional fees	1,698	1,629
Accrued customer related liabilities	4,767	3,254
Dividends payable	1,287	1,289
Remediation reserves	11,348	10,979	$ 10,642
Derivative liabilities		437
Other accrued liabilities	4,244	6,811
Total accrued expenses and other liabilities	$ 36,171	$ 36,718

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Commitments and Contingencies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 Site
U.S. Environmental Protection Agency
Loss Contingencies [Line Items]
Number of sites under National Priorities List of Superfund program	2

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Commitments and Contingencies - Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Balance at beginning of period	$ 10,979	$ 10,642
Remediation expense	1,382	2,254
Net remediation payments	(1,019)	(1,929)
Other activity	6	12
Balance at end of the period	$ 11,348	$ 10,979

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Debt - Summary of Long-Term Debt (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021	Dec. 15, 2021
Long-term debt
Total credit facility	$ 400,000,000	$ 400,000,000
Balance outstanding	91,027,000	50,000,000
Standby letters of credit	1,640,000	1,740,000
Amount available, subject to covenant restrictions	307,333,000	348,260,000
Revolving Credit Facility Due 2024
Long-term debt
Total credit facility			$ 400,000,000
Balance outstanding	$ 91,027,000	$ 50,000,000
Weighted-average interest rate	1.57%	1.16%

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Debt - Additional Information (Details) - USD ($)			3 Months Ended		6 Months Ended
	Dec. 15, 2021	May 23, 2016	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Line of Credit Facility
Line of credit maximum borrowing amount			$ 400,000,000		$ 400,000,000		$ 400,000,000
Debt amortization expense			$ 48,000	$ 42,000	$ 97,000	$ 84,000
Revolving Credit Facility Due 2024
Line of Credit Facility
Line of credit maximum borrowing amount	$ 400,000,000
Line of credit facility contingent increase to maximum borrowing capacity	$ 200,000,000
Maturity date	Dec. 15, 2026	Feb. 12, 2024
Revolving Credit Facility Due 2024 | Minimum
Line of Credit Facility
Commitment fee percentage per annum	0.175%
Revolving Credit Facility Due 2024 | Maximum
Line of Credit Facility
Commitment fee percentage per annum	0.25%
Revolving Credit Facility | SOFR | Minimum
Line of Credit Facility
Interest rate					0.00%
Revolving Credit Facility | U S Dollar Denominated Debt | SOFR | Minimum
Line of Credit Facility
Interest rate plus an applicable margin					1.00%
Revolving Credit Facility | U S Dollar Denominated Debt | SOFR | Maximum
Line of Credit Facility
Interest rate plus an applicable margin					1.75%
Revolving Credit Facility | Foreign Currency Denominated Debt | SOFR | Minimum
Line of Credit Facility
Interest rate plus an applicable margin					1.00%
Revolving Credit Facility | Foreign Currency Denominated Debt | SOFR | Maximum
Line of Credit Facility
Interest rate plus an applicable margin					1.75%
Revolving Credit Facility Due 2024 Swingline Sublimit
Line of Credit Facility
Line of credit maximum borrowing amount	$ 20,000,000
Revolving Credit Facility Due 2024 Letter Of Credit Sublimit
Line of Credit Facility
Line of credit maximum borrowing amount	$ 20,000,000

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Derivative Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 27, 2022	Dec. 31, 2021
Derivative [Line Items]
Derivative hedge, Ineffectiveness recognized	$ 0	$ 0
Unrealized gain on foreign currency derivatives, net, before tax		401,000
Derivative liabilities				$ 437,000
Foreign Currency Derivatives
Derivative [Line Items]
Derivative asset	514,000	514,000
Derivative liabilities	0	$ 0
Cross Currency Interest Rate Swap Agreement | Krone
Derivative [Line Items]
Variable Rate debt			$ 25,000,000
Designated As Net Investment Hedge | Ferroperm Acquisition
Derivative [Line Items]
Derivative maturity date		Jun. 30, 2027
Designated As Net Investment Hedge | Cross Currency Interest Rate Swap Agreement | Other Expense
Derivative [Line Items]
Gain (loss) on foreign currency derivatives	111,000
Designated As Hedging | Cash Flow Hedging | Interest Rate Swap
Derivative [Line Items]
Derivative, notional amount	50,000,000	$ 50,000,000
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months	523,000	523,000
Designated As Hedging | Cash Flow Hedging | Foreign Currency Forward Contracts
Derivative [Line Items]
Derivative, notional amount	9,379,000	$ 9,379,000
Not Designated As Hedges | Ferroperm Acquisition | Other Expense
Derivative [Line Items]
Loss on derivative	$ 1,776,000

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Derivative Financial Instruments - Schedule of Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivatives Fair Value [Line Items]
Derivative liabilities		$ (437)
Cash Flow Hedging | Other Current Assets
Derivatives Fair Value [Line Items]
Derivative asset	$ 514	135
Net Investment Hedge | Other Assets
Derivatives Fair Value [Line Items]
Derivative asset	111	0
Interest Rate Swap | Cash Flow Hedging | Other Current Assets
Derivatives Fair Value [Line Items]
Derivative asset	679	0
Interest Rate Swap | Cash Flow Hedging | Other Assets
Derivatives Fair Value [Line Items]
Derivative asset	684	0
Interest Rate Swap | Cash Flow Hedging | Accrued Expenses and Other Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities	0	(437)
Interest Rate Swap | Cash Flow Hedging | Other Long-term Obligations
Derivatives Fair Value [Line Items]
Derivative liabilities	$ 0	$ (353)

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Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain on Derivative, Net	$ 61	$ 142	$ 35	$ 187
Foreign Currency Derivatives | Designated As Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Total gain reclassified from AOCI to earnings	162	329	308	550
Derivative, Gain on Derivative, Net	162	329	308	550
Foreign Currency Derivatives | Cost of Goods Sold | Designated As Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Total gain reclassified from AOCI to earnings	162	329	308	550
Interest Rate Swap | Interest Expense | Designated As Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain on Derivative, Net	$ 101	$ (187)	$ 273	$ (363)

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Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Foreign currency transaction loss
Foreign currency transaction gain (loss)	$ 3,817	$ 928	$ 3,529	$ (401)

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Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Changes in AOCI, Net
Total accumulated other comprehensive (loss) income, beginning of period			$ (4,525)
Total accumulated other comprehensive (loss) income, end of period	$ (2,670)		(2,670)
Changes in Fair Market Value of Derivatives
Changes in AOCI, Gross
Gross, beginning of the period	969	$ (877)	(635)	$ (1,038)
Gross, gain (loss) recognized in OCI	976	490	2,554	696
Gross, gain (loss) reclassified from AOCI to earnings	(61)	(142)	(35)	(187)
Gross, ending balance	1,884	(529)	1,884	(529)
Changes in AOCI, Income tax benefit (expense)
Income tax benefit (expense), beginning of period	(221)	203	147	240
Income tax benefit (expense), gain (loss) recognized in OCI	(224)	(113)	(587)	(160)
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings	14	33	9	43
Income tax benefit (expense), ending of period	(431)	123	(431)	123
Changes in AOCI, Net
Total accumulated other comprehensive (loss) income, beginning of period	748	(674)	(488)	(798)
Gain (loss) recognized in OCI, net	752	377	1,967	536
(Gain) Loss reclassified from AOCI to earnings, net	47	109	26	144
Total accumulated other comprehensive (loss) income, end of period	1,453	(406)	1,453	(406)
Changes in Unrealized Pension Cost
Changes in AOCI, Gross
Gross, beginning of the period	(2,624)	(126,157)	(2,744)	(128,004)
Gross, gain (loss) recognized in OCI	1,977	499	1,977	499
Gross, gain (loss) reclassified from AOCI to earnings	143	21,606	263	23,453
Gross, ending balance	(504)	(104,052)	(504)	(104,052)
Changes in AOCI, Income tax benefit (expense)
Income tax benefit (expense), beginning of period	712	34,492	738	34,917
Income tax benefit (expense), gain (loss) recognized in OCI	0	(115)	0	(115)
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings	(38)	(4,966)	(64)	(5,391)
Income tax benefit (expense), ending of period	674	29,411	674	29,411
Changes in AOCI, Net
Total accumulated other comprehensive (loss) income, beginning of period	(1,912)	(91,665)	(2,006)	(93,087)
Gain (loss) recognized in OCI, net	1,977	384	1,977	384
(Gain) Loss reclassified from AOCI to earnings, net	(105)	(16,640)	(199)	(18,062)
Total accumulated other comprehensive (loss) income, end of period	170	(74,641)	170	(74,641)
Cumulative Translation Adjustment
Changes in AOCI, Gross
Gross, beginning of the period	(2,281)	(2,024)	(2,032)	(2,036)
Gross, gain (loss) recognized in OCI	(2,012)	1	(2,261)	13
Gross, gain (loss) reclassified from AOCI to earnings	0	0	0	0
Gross, ending balance	(4,293)	(2,023)	(4,293)	(2,023)
Changes in AOCI, Income tax benefit (expense)
Income tax benefit (expense), beginning of period	0	0	0	0
Income tax benefit (expense), gain (loss) recognized in OCI	0	0	0	0
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings	0	0	0	0
Income tax benefit (expense), ending of period	0	0	0	0
Changes in AOCI, Net
Total accumulated other comprehensive (loss) income, beginning of period	(2,281)	(2,024)	(2,032)	(2,036)
Gain (loss) recognized in OCI, net	(2,012)	1	(2,261)	13
(Gain) Loss reclassified from AOCI to earnings, net		0	0	0
Total accumulated other comprehensive (loss) income, end of period	(4,293)	(2,023)	(4,293)	(2,023)
Accumulated Other Comprehensive (Loss) Income
Changes in AOCI, Net
Total accumulated other comprehensive (loss) income, beginning of period	(3,445)	(94,363)	(4,526)	(95,921)
Gain (loss) recognized in OCI, net	717	762	1,683	933
(Gain) Loss reclassified from AOCI to earnings, net	58	16,531	173	17,918
Total accumulated other comprehensive (loss) income, end of period	$ (2,670)	$ (77,070)	$ (2,670)	$ (77,070)

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Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Preferred Stock
Preferred stock, par value per share
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares outstanding	0	0
Common Stock
Common stock, par value per share
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	57,310,174	57,245,060
Common stock, shares outstanding	31,911,401	32,178,715	32,435,756	32,276,787
Treasury stock
Treasury stock, shares held	25,398,773	25,066,345

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Shareholders' Equity - Additional Information (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	May 13, 2021
Equity Class Of Treasury Stock [Line Items]
Common stock repurchased, shares	216,252	116,176	0	332,428	0
Common stock repurchased, value	$ 7,748,000	$ 3,920,000		$ 11,668,000
Shares available for future purchases	$ 29,546,000			$ 29,546,000
Antidilutive securities excluded from computation of earnings per share (shares)	2,500		93	2,500	46,810
Maximum
Equity Class Of Treasury Stock [Line Items]
Treasury shares authorized to be purchased						$ 50,000,000

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Shareholders' Equity - Summary of Common Shares Outstanding (Details) - shares	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Roll forward of common shares outstanding
Balance at the beginning of the year		32,178,715		32,178,715	32,276,787
Repurchases	(216,252)	(116,176)	0	(332,428)	0
Restricted share issuances				65,114	158,969
Balance at the end of the period	31,911,401		32,435,756	31,911,401	32,435,756

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Stock-Based Compensation - Additional Information (Details) $ in Thousands	Jun. 30, 2022 USD ($) Plan shares	Dec. 31, 2021 USD ($) shares
Share-based Compensation
Number of equity based compensation plans | Plan	5
Other accrued liabilities	$ 4,244	$ 6,811
Cash Settled Awards
Share-based Compensation
Outstanding shares | shares	46,524	32,085
Other accrued liabilities	$ 299	$ 400

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Stock-Based Compensation - Summary of Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation			$ 3,566	$ 3,122
Service-Based RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	$ 691	$ 738	1,368	1,425
Performance-Based RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	820	1,066	2,041	1,559
Cash Settled Awards
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	105	99	157	138
RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	1,616	1,903	3,566	3,122
Income tax benefit	372	438	820	718
Net expense	$ 1,244	$ 1,465	$ 2,746	$ 2,404

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Stock-Based Compensation - Summary of Unrecognized Compensation Expense related to Non-vested RSUs (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Service-Based RSUs
Share-based Compensation
Unrecognized compensation expense	$ 2,711
Weighted-average period (years)	1 year 5 months 8 days
Performance-Based RSUs
Share-based Compensation
Unrecognized compensation expense	$ 5,117
Weighted-average period (years)	1 year 10 months 20 days
RSUs
Share-based Compensation
Unrecognized compensation expense	$ 7,828
Weighted-average period (years)	1 year 8 months 23 days

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Stock-Based Compensation - Summary of Status of Plans (Details)	6 Months Ended
	Jun. 30, 2022 shares
2018 Plan
Summary of Status of Equity-Based Compensation Plans
Awards originally available	2,500,000
Maximum potential awards outstanding	716,826
RSUs and cash settled awards vested and released	117,828
Awards available for grant	1,665,346
2014 Plan
Summary of Status of Equity-Based Compensation Plans
Awards originally available	1,500,000
Maximum potential awards outstanding	35,100
2009 Plan
Summary of Status of Equity-Based Compensation Plans
Awards originally available	3,400,000
Maximum potential awards outstanding	45,200
2004 Plan
Summary of Status of Equity-Based Compensation Plans
Awards originally available	6,500,000
Maximum potential awards outstanding	14,545
Directors' Plan
Summary of Status of Equity-Based Compensation Plans
Maximum potential awards outstanding	4,722

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Stock-Based Compensation - Summary of Service-Based Restricted Stock Units (Details) - Service-Based RSUs	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Units
Outstanding at beginning of year - Units | shares	283,216
Granted - Units | shares	68,124
Vested and released - Units | shares	(58,144)
Forfeited - Units | shares	(7,838)
Outstanding at end of year - Units | shares	285,358
Releasable - Units | shares	132,834
Weighted Average Grant Date Fair Value
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares	$ 24.91
Granted - Weighted Average Grant Date Fair Value | $ / shares	33.70
Vested and released - Weighted Average Grant Date Fair Value | $ / shares	29.96
Forfeited - Weighted Average Grant Date Fair Value | $ / shares	30.35
End of year - Weighted Average Grant Date Fair Value | $ / shares	25.83
Releasable - Weighted Average Grant Date Fair Value | $ / shares	$ 17.55

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Stock-Based Compensation - Schedule of Performance-Based RSUs (Details) - Performance and Market-based Restricted Stock Units	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Units
Outstanding at beginning of year - Units | shares	237,767
Granted - Units | shares	81,702
Attained by performance - Units | shares	5,136
Released - Units | shares	(51,848)
Forfeited - Units | shares	(14,351)
Outstanding at end of year - Units | shares	258,406
Releasable - Units | shares	0
Weighted Average Grant Date Fair Value
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares	$ 31.35
Granted - Weighted Average Grant Date Fair Value | $ / shares	37.15
Attained by performance - Weighted Average Grant Date Fair Value | $ / shares	29.50
Vested and released - Weighted Average Grant Date Fair Value | $ / shares	30.64
Forfeited - Weighted Average Grant Date Fair Value | $ / shares	32.62
End of year - Weighted Average Grant Date Fair Value | $ / shares	33.20
Releasable - Weighted Average Grant Date Fair Value | $ / shares	$ 0

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Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial assets (liabilities), measured at fair value
Derivative liabilities		$ (437)
Recurring | Carrying Value | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Contingent consideration	$ (300)	(1,200)
Qualified replacement plan assets	16,149
Recurring | Interest Rate Swaps | Carrying Value | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Derivative Asset	1,363
Derivative liabilities		(790)
Recurring | Foreign Currency Forward Contracts | Carrying Value | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Derivative Asset	514	135
Recurring | Cross-currency Swap | Carrying Value | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Derivative Asset	111
Recurring | Quoted Prices in Active Markets for Identical (Level 1) | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Qualified replacement plan assets	16,149
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Derivative Asset	1,363
Derivative liabilities		(790)
Recurring | Significant Other Observable Inputs (Level 2) | Foreign Currency Forward Contracts | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Derivative Asset	514	135
Recurring | Significant Other Observable Inputs (Level 2) | Cross-currency Swap | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Derivative Asset	111
Recurring | Significant Unobservable Inputs (Level 3) | Designated As Hedging | Cash Flow Hedge
Financial assets (liabilities), measured at fair value
Contingent consideration	$ (300)	$ (1,200)

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Fair Value Measurements - Roll-forward of the Contingent Consideration (Details) - Contingent Consideration $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2021	$ 1,200
Settled in cash	(900)
Balance at June 30, 2022	$ 300

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Income Taxes - Schedule of Effective Income Tax Rate (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	25.60%	245.60%	23.00%	9.30%

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Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	25.60%	245.60%	23.00%	9.30%