Basis of Presentation and Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Consolidation

Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.  All intercompany transactions have been eliminated in consolidation.  Certain prior year amounts have been reclassified to conform to current year presentation.

Receivables

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)
2021	$	552	$	191		$	(46	)	$	697
2020		224		356			(28	)		552
2019		360		(132	)		(4	)		224

Inventories

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)
2021	$	6,400	$	1,329	$	(1,651	)	$	6,078
2020		5,440		2,964		(2,004	)		6,400
2019		4,131		2,663		(1,354	)		5,440

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 $5.6 million and $6.0 million at December 31, 2021 and 2020, 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, 2021, 2020 and 2019 was $4.5 million, $3.7 million and $3.1 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 was $10.0 million in 2021 and $7.2 million in 2020 and 2019.  Amortization expense expected to be recognized is $8.7 million in 2022 and $8.1 in 2023, $8.0 million in 2024, $7.7 million in 2025, $6.6 million in 2026 and $25.1 million thereafter.  The carrying value and accumulated amortization by major class of intangible assets are as follows:

	December 31, 2021				December 31, 2020
	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
	(In thousands)
Technologies	$	58,789	$	34,254	$	52,536	$	30,598
Intellectual property		10,169		2,744		10,000		1,833
Non-compete agreements		748		506		931		413
Licenses		650		543		650		526
Customer lists		8,083		4,501		8,023		3,846
Customer relationships		39,202		19,663		28,630		16,146
Trade names		16,050		7,304		12,136		5,946
Total intangibles	$	133,691	$	69,515	$	112,906	$	59,308

Goodwill

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 2021, 2020 and 2019. Goodwill was $104.3 million at December 31, 2021, $88.7 million in 2020 and $71.3 million in 2019.  The increase from 2020 to 2021 resulted from the acquisition of ATi, headquartered in Collegeville, Pennsylvania in 2021.  The increase from 2019 to 2020 resulted from the acquisition of s::can, headquartered in Vienna, Austria in 2020. These acquisitions are 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)
2021	$	11,617	$	—	$	5,856	$	(4,605	)	$	12,868
2020		5,583		500		7,855		(2,321	)		11,617
2019		4,206		—		6,616		(5,239	)		5,583

Research and Development

Research and Development

Research and development costs are charged to expense as incurred and amounted to $14.7 million in 2021, $11.6 million in 2020 and $11.9 million in 2019.

Healthcare

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, 2021 are as follows:

	Pension and postretirement benefits		Foreign currency			Total
	(In thousands)
Balance at beginning of period	$	55	$	1,258		$	1,313
Other comprehensive income before reclassifications		—		(1,516	)		(1,516	)
Amounts reclassified from accumulated other comprehensive income, net of tax of ($112)		339		—			339
Net current period other comprehensive income (loss), net		339		(1,516	)		(1,177	)
Accumulated other comprehensive income	$	394	$	(258	)	$	136

Reclassifications out of accumulated other comprehensive income during 2021 are immaterial.

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, 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 were immaterial.     

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.  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.  

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting 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, the impact of which was not significant to the Company.