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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation.

Receivables

Receivables consist primarily of trade receivables. The Company does not require collateral or other security and evaluates the collectability of its receivables based on a number of factors. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due items and the customer's ability and likelihood to pay, as well as applying a historical write-off ratio to the remaining balances. Changes in the Company's allowance for doubtful accounts are as follows:

		Balance at beginning of year				Provision and reserve adjustments				Write-offs less recoveries				Balance at end of year
		(In thousands)
2020		$	224			$	356			$	(28	)		$	552
2019		$	360			$	(132	)		$	(4	)		$	224
2018		$	387			$	—			$	(27	)		$	360

Inventories

Inventories are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The Company estimates and records provisions for obsolete and excess inventories. Changes to the Company's obsolete and excess inventories reserve are as follows:

		Balance at beginning of year				Net additions charged to earnings				Disposals				Balance at end of year
		(In thousands)
2020		$	5,440			$	2,964			$	(2,004	)		$	6,400
2019		$	4,131			$	2,663			$	(1,354	)		$	5,440
2018		$	3,881			$	2,195			$	(1,945	)		$	4,131

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation is provided over the estimated useful lives of the respective assets by the straight-line method. The estimated useful lives of assets are: for land improvements, 15 years; for buildings and improvements, 10 to 39 years; and for machinery and equipment, 3 to 20 years.

Capitalized Software and Hardware

Capitalized Software and Hardware

Capitalized internal use software and hardware included in other assets in the Consolidated Balance Sheets were $6.0 million and $5.7 million at December 31, 2020 and 2019, respectively. These amounts are amortized on a straight-line basis over the estimated useful lives of the software and/or hardware, ranging from 1 to 5 years. Amortization expense recognized for the years ending December 31, 2020, 2019 and 2018 was $3.7 million, $3.1 million and $3.2 million, respectively.

Long-Lived Assets

Long-Lived Assets

Property, plant and equipment and identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets.

Intangible Assets

Intangible Assets

Intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 5 to 20 years. The Company does not have any intangible assets deemed to have indefinite lives. Amortization expense recognized for 2020 and 2019 was $7.2 million and $7.5 million in 2018. Amortization expense expected to be recognized is $8.2 million in 2021 and $7.1 in 2022, $6.4 million in 2023, $6.3 million in 2024, $6.0 million in 2025 and $19.6 million thereafter. The carrying value and accumulated amortization by major class of intangible assets are as follows:

		December 31, 2020								December 31, 2019
		Gross carrying amount				Accumulated amortization				Gross carrying amount				Accumulated amortization
		(In thousands)
Technologies		$	52,536			$	30,598			$	47,608			$	27,650
Intellectual property			10,000				1,833				10,000				1,333
Non-compete agreements			931				413				572				431
Licenses			650				526				650				509
Customer lists			8,023				3,846				8,023				3,234
Customer relationships			28,630				16,146				25,220				14,730
Trade names			12,136				5,946				9,203				5,226
Total intangibles		$	112,906			$	59,308			$	101,276			$	53,113

Goodwill

Goodwill is tested for impairment annually during the fourth quarter or more frequently if an event indicates that the goodwill might be impaired. Potential impairment is identified by comparing the fair value of a reporting unit with its carrying value. No adjustments were recorded to goodwill as a result of these tests during 2020, 2019 and 2018. Goodwill was $88.7 and $71.3 million at December 31, 2020 and 2019, respectively. The increase resulted from the acquisition of s::can, headquartered in Vienna, Austria in 2020. This acquisition is further described in Note 3 “Acquisitions”.

Warranty and After-Sale Costs

Warranty and After-Sale Costs

The Company estimates and records provisions for warranties and other after-sale costs in the period in which the sale is recorded, based on a lag factor and historical warranty claim experience. After-sale costs represent a variety of activities outside of the written warranty policy, such as investigation of unanticipated issues after the customer has installed the product or analysis of water quality issues. Changes in the Company's warranty and after-sale costs reserve are as follows:

		Balance at beginning of year				Provision of acquired business				Net additions charged to earnings				Costs incurred				Balance at end of year
		(In thousands)
2020		$	5,583			$	500			$	7,855			$	(2,321	)		$	11,617
2019		$	4,206			$	—			$	6,616			$	(5,239	)		$	5,583
2018		$	3,367			$	—			$	3,274			$	(2,435	)		$	4,206

Research and Development

Research and Development

Research and development costs are charged to expense as incurred and amounted to $11.6 million in 2020, $11.9 million in 2019 and $11.1 million in 2018.

Healthcare

The Company estimates and records provisions for healthcare claims incurred but not reported, based on medical cost trend analysis, reviews of subsequent payments made and estimates of unbilled amounts.

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Components of accumulated other comprehensive income at December 31, 2020 are as follows:

		Pension and postretirement benefits				Foreign currency				Total
		(In thousands)
Balance at beginning of period		$	263			$	162			$	425
Other comprehensive income before reclassifications			—				1,096				1,096
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $69			(208	)			—				(208	)
Net current period other comprehensive (loss) income, net			(208	)			1,096				888
Accumulated other comprehensive income		$	55			$	1,258			$	1,313

Reclassifications out of accumulated other comprehensive income during 2020 are immaterial.

Components of accumulated other comprehensive income at December 31, 2019 are as follows:

		Pension and postretirement benefits				Foreign currency				Total
		(In thousands)
Balance at beginning of period		$	360			$	220			$	580
Other comprehensive income (loss) before reclassifications			—				(58	)			(58	)
Amounts reclassified from accumulated other comprehensive income, net of tax of $16			(97	)			—				(97	)
Net current period other comprehensive income (loss), net			(97	)			(58	)			(155	)
Accumulated other comprehensive income		$	263			$	162			$	425

Reclassifications out of accumulated other comprehensive income during 2019 are as follows:

		Amount reclassified from accumulated other comprehensive income
		(In thousands)
Amortization of employee benefit plan items:
Actuarial gains and losses (1)		$	(639	)
Plan settlement (2)			526
Total before tax			(113	)
Income tax impact			16
Amount reclassified out of accumulated other comprehensive income		$	(97	)

(1)These accumulated other comprehensive loss components are included in the computation of benefit plan costs in Note 7 “Employee Benefit Plans.” (2) This accumulated other comprehensive income component results from an international pension plan settlement.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value Measurements of Financial Instruments

Fair Value Measurements of Financial Instruments

The carrying amounts of cash, receivables and payables in the financial statements approximate their fair values due to the short-term nature of these financial instruments. Short-term debt is comprised of notes payable drawn against the Company's lines of credit. Because of its short-term nature, the carrying amount of the short-term debt also approximates fair value. Included in other assets are insurance policies on various individuals who were associated with the Company. The carrying amounts of these insurance policies approximate their fair value.

Subsequent Events

Subsequent Events

The Company evaluates subsequent events at the date of the balance sheet as well as conditions that arise after the balance sheet date but before the financial statements are issued. The effects of conditions that existed at the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, if any, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. For purposes of preparing the accompanying consolidated financial statements and the notes to these financial statements, the Company evaluated subsequent events through the date the accompanying financial statements were issued.

Effective January 1, 2021, the Company acquired 100% of the outstanding stock of Analytical Technology, LLC (“ATi”), headquartered in Collegeville, Pennsylvania, a provider of water quality monitoring systems. The purchase consideration, net of cash acquired, was approximately $44 million. The ATi acquisition will be accounted for under the purchase method, and accordingly, the results of operations will be included in the Company’s financial statements from the

date of acquisition. The acquisition is not expected to have a material impact on the Company’s consolidated financial statements and notes thereto.

New Pronouncements

New Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes” under ASC 740, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and modifies the existing guidance to enable more consistent application. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year with early adoption being permitted. The Company adopted ASU No. 2019-12 on January 1, 2021 and noted no significant changes to the Company’s financial position or results of operations.

In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326),” which amends the accounting for credit losses on purchased financial assets and available-for-sale debt securities with credit deterioration. This ASU requires the measurement of all expected credit losses for financial assets, including accounts receivables, held at the reporting date based upon current conditions, historical experience and reasonable forecasts. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company adopted ASU No. 2016-13 on January 1, 2020 and noted no significant changes to the Company’s financial position or results of operations.