Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 11, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BADGER METER INC | ||
Entity Central Index Key | 9092 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 14,454,020 | ||
No | Yes | ||
No | No | ||
Yes | Yes | ||
Entity Public Float | $651,621,555 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash | $6,656 | $7,263 |
Receivables | 53,967 | 50,133 |
Inventories: | ||
Finished goods | 25,362 | 17,704 |
Work in process | 13,047 | 12,330 |
Raw materials | 33,365 | 30,905 |
Total inventories | 71,774 | 60,939 |
Prepaid expenses and other current assets | 4,538 | 3,994 |
Deferred income taxes | 4,170 | 4,834 |
Total current assets | 141,105 | 127,163 |
Property, plant and equipment, at cost: | ||
Land and improvements | 9,182 | 8,941 |
Buildings and improvements | 57,872 | 55,018 |
Machinery and equipment | 110,346 | 100,179 |
Property, plant and equipment, at cost: | 177,400 | 164,138 |
Less accumulated depreciation | -95,594 | -87,722 |
Net property, plant and equipment | 81,806 | 76,416 |
Intangible assets, at cost less accumulated amortization | 61,672 | 57,317 |
Prepaid pension | 456 | 4,312 |
Other assets | 8,397 | 6,155 |
Goodwill | 47,722 | 44,695 |
Total assets | 341,158 | 316,058 |
Current liabilities: | ||
Short-term debt | 75,927 | 70,045 |
Payables | 16,059 | 18,554 |
Accrued compensation and employee benefits | 11,901 | 7,337 |
Warranty and after-sale costs | 1,739 | 882 |
Income and other taxes | 1,449 | 1,223 |
Total current liabilities | 107,075 | 98,041 |
Other long-term liabilities | 1,735 | 1,324 |
Deferred income taxes | 6,399 | 9,790 |
Accrued non-pension postretirement benefits | 6,342 | 5,934 |
Other accrued employee benefits | 5,276 | 4,406 |
Commitments and contingencies (Note 6) | ||
Shareholders’ equity: | ||
Common Stock, $1 par; authorized 40,000,000 shares; issued 20,522,864 shares in 2014 and 20,503,604 shares in 2013 | 20,523 | 20,504 |
Capital in excess of par value | 48,353 | 45,627 |
Reinvested earnings | 189,365 | 170,318 |
Accumulated other comprehensive loss | -11,856 | -7,524 |
Less: Employee benefit stock | -922 | -1,075 |
Treasury stock, at cost; 6,061,671 shares in 2014 and 6,091,728 shares in 2013 | -31,132 | -31,287 |
Total shareholders’ equity | 214,331 | 196,563 |
Total liabilities and shareholders’ equity | $341,158 | $316,058 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 20,522,864 | 20,503,604 |
Treasury Stock, shares outstanding | 6,061,671 | 6,091,728 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $364,768 | $334,122 | $319,660 |
Cost of sales | 233,626 | 217,133 | 197,414 |
Gross margin | 131,142 | 116,989 | 122,246 |
Selling, engineering and administration | 85,095 | 77,882 | 77,777 |
Operating earnings | 46,047 | 39,107 | 44,469 |
Interest expense, net | 1,135 | 1,098 | 998 |
Earnings before income taxes | 44,912 | 38,009 | 43,471 |
Provision for income taxes | 15,234 | 13,392 | 15,439 |
Net earnings | $29,678 | $24,617 | $28,032 |
Basic | |||
from continuing operations (in dollars per share) | $2.07 | $1.71 | $1.96 |
Diluted: | |||
from continuing operations (in dollars per share) | $2.06 | $1.70 | $1.95 |
Shares used in computation of earnings per share: | |||
Basic | 14,307 | 14,362 | 14,332 |
Impact of dilutive securities | 71 | 78 | 67 |
Diluted | 14,378 | 14,440 | 14,399 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net earnings | $29,678 | $24,617 | $28,032 |
Adjustments to reconcile net earnings to net cash provided by operations: | |||
Depreciation | 8,891 | 8,512 | 7,587 |
Amortization | 6,773 | 4,982 | 4,467 |
Deferred income taxes | -1,334 | 1,462 | -551 |
Contributions to pension plan | 0 | 0 | -1,097 |
Noncurrent employee benefits | 4,417 | 1,392 | 122 |
Stock-based compensation expense | 1,449 | 1,388 | 1,266 |
Changes in: | |||
Receivables | -997 | -3,991 | 812 |
Inventories | -6,943 | 247 | -4,743 |
Prepaid expenses and other current assets | -2,060 | 368 | -905 |
Liabilities other than debt | -4,139 | -4,159 | -188 |
Total adjustments | 6,057 | 10,201 | 6,770 |
Net cash provided by operations | 35,735 | 34,818 | 34,802 |
Investing activities: | |||
Property, plant and equipment additions | -12,332 | -14,311 | -8,202 |
Acquisitions, net of cash acquired | -20,829 | -15,401 | -51,518 |
Net cash used for investing activities | -33,161 | -29,712 | -59,720 |
Financing activities: | |||
Net increase (decrease) in short-term debt | 6,653 | 3,205 | 65,136 |
Dividends paid | -10,633 | -10,004 | -9,513 |
Proceeds from exercise of stock options | 730 | 1,640 | 382 |
Tax benefit on stock options | 38 | 382 | 297 |
Repurchase of Common Stock | 0 | 0 | -30,000 |
Issuance of treasury stock | 469 | 498 | 477 |
Net cash (used for) provided by financing activities | -2,743 | -4,279 | 26,779 |
Effect of foreign exchange rates on cash | -438 | -118 | -282 |
(Decrease) increase in cash | -607 | 709 | 1,579 |
Cash — beginning of year | 7,263 | 6,554 | 4,975 |
Cash — end of year | 6,656 | 7,263 | 6,554 |
Cash paid during the year for: | |||
Income taxes | 17,218 | 15,292 | 15,247 |
Interest | 1,144 | 1,114 | 1,113 |
Settlement of National Meter and Automation, Inc. accounts payable prior to the acquisition | $2,623 | $0 | $0 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common stock at $1 par value | Capital in excess of par value | Reinvested earnings | Accumulated other comprehensive income (loss) | Employee benefit stock | Treasury stock | |
In Thousands, except Per Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $179,281 | $21,292 | [1] | $39,445 | $166,271 | ($14,566) | ($1,485) | ($31,676) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 28,032 | 28,032 | ||||||
Pension and postretirement benefits, net of tax | 225 | 225 | ||||||
Foreign currency translation adjustment | 393 | 393 | ||||||
Cash dividends | -9,497 | -9,497 | ||||||
Stock options exercised | 382 | 37 | [1] | 345 | ||||
Tax benefit on stock options and dividends | 297 | 297 | ||||||
ESSOP transactions | 391 | 140 | 251 | |||||
Stock-based compensation | 1,266 | 1,266 | ||||||
Shares purchased and retired | -30,000 | -888 | [1] | -29,112 | ||||
Issuance of treasury stock | 477 | 262 | 215 | |||||
Balance at Dec. 31, 2012 | 171,247 | 20,441 | [1] | 41,755 | 155,694 | -13,948 | -1,234 | -31,461 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 24,617 | 24,617 | ||||||
Pension and postretirement benefits, net of tax | 6,252 | 6,252 | ||||||
Foreign currency translation adjustment | 172 | 172 | ||||||
Cash dividends | -9,993 | -9,993 | ||||||
Stock options exercised | 1,640 | 63 | [1] | 1,577 | ||||
Tax benefit on stock options and dividends | 382 | 382 | ||||||
ESSOP transactions | 360 | 201 | 159 | |||||
Stock-based compensation | 1,388 | 1,388 | ||||||
Issuance of treasury stock | 498 | 324 | 174 | |||||
Common stock, par value (in dollars per share) | $1 | |||||||
Balance at Dec. 31, 2013 | 196,563 | 20,504 | [1] | 45,627 | 170,318 | -7,524 | -1,075 | -31,287 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 29,678 | 29,678 | ||||||
Pension and postretirement benefits, net of tax | -2,611 | -2,611 | ||||||
Foreign currency translation adjustment | -1,721 | -1,721 | ||||||
Cash dividends | -10,631 | -10,631 | ||||||
Stock options exercised | 730 | 19 | [1] | 711 | ||||
Tax benefit on stock options and dividends | 38 | 38 | ||||||
ESSOP transactions | 367 | 214 | 153 | |||||
Stock-based compensation | 1,449 | 1,449 | ||||||
Issuance of treasury stock | 469 | 314 | 155 | |||||
Common stock, par value (in dollars per share) | $1 | |||||||
Balance at Dec. 31, 2014 | $214,331 | $20,523 | [1] | $48,353 | $189,365 | ($11,856) | ($922) | ($31,132) |
[1] | Each common share of stock equals $1 par value; therefore, the number of common shares is the same as the dollar value. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive income (loss) | |||
Tax effect on employee benefit funded status adjustment | ($1,381) | ($3,826) | ($247) |
Reinvested earnings | |||
Cash dividends (in dollars per share) | $0.74 | $0.60 | $0.66 |
Capital in excess of par value | |||
Issuance of treasury stock (in shares) | 30 | 35 | 42 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net earnings | $6,001 | $10,231 | $8,814 | $4,632 | $6,380 | $9,049 | $6,281 | $2,907 | $29,678 | $24,617 | $28,032 |
Other comprehensive income : | |||||||||||
Foreign currency translation adjustment | -1,721 | 172 | 393 | ||||||||
Employee benefit funded status adjustment, net of tax | -2,611 | 6,252 | 225 | ||||||||
Comprehensive income | $25,346 | $31,041 | $28,650 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net earnings | $6,001 | $10,231 | $8,814 | $4,632 | $6,380 | $9,049 | $6,281 | $2,907 | $29,678 | $24,617 | $28,032 |
Other comprehensive income : | |||||||||||
Foreign currency translation adjustment | -1,721 | 172 | 393 | ||||||||
Pension and postretirement benefits, net of tax | -2,611 | 6,252 | 225 | ||||||||
Comprehensive income | $25,346 | $31,041 | $28,650 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Notes) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||||||||||||
Profile | ||||||||||||||||||||||
Badger Meter is an innovator in flow measurement and control products, serving water utilities, municipalities, and commercial and industrial customers worldwide. The Company’s products measure water, oil, chemicals and other fluids, and are known for accuracy, long-lasting durability and for providing valuable and timely measurement data. The Company’s product lines fall into three categories: sales of water meters and related technologies to municipal water utilities (municipal water), sales of meters to various industries for water and other fluids (flow instrumentation), and sales of gas meter radios and concrete vibrators to unique markets (specialty products). The Company estimates that over 75% of its products are used in water applications when all categories are grouped together. | ||||||||||||||||||||||
Municipal water, the largest category by sales volume, includes mechanical and electronic (static) water meters and related technologies and services used by water utilities as the basis for generating water and wastewater revenues. The key market for the Company’s water meter products is North America, primarily the United States, because most meters are designed and manufactured to conform to standards promulgated by the American Water Works Association. The majority of water meters sold continues to be mechanical in nature. In recent years, the Company has made inroads in selling electronic (static) meters. This recent development of static water meters combined with updated radio technology now provides the Company with the opportunity to sell into other geographical markets, for example Europe, Middle East and South America. In the municipal water category, sales of water meters and related technologies and services are commonly referred to as residential or commercial water meter sales, the latter referring to larger sizes of meters. | ||||||||||||||||||||||
Flow instrumentation includes meters and valves sold worldwide to measure and control materials flowing through a pipe or pipeline including water, air, steam, oil, and other liquids and gases. These products are used in a variety of applications, such as water/wastewater; heating, ventilating and air conditioning (HVAC); oil and gas; chemical and petrochemical; food and beverage; and pharmaceutical production. Furthermore, the Company’s flow measurement technologies are sold to original equipment manufacturers as the primary flow measurement device within a product or system. | ||||||||||||||||||||||
Specialty products include sales of radio technology to natural gas utilities for installation on their gas meters, and concrete vibrators used in the concrete construction process. | ||||||||||||||||||||||
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 | Provision | Write-offs | Reserve | Balance | ||||||||||||||||||
beginning | and reserve | less | acquired | at end | ||||||||||||||||||
of year | adjustments | recoveries | of year | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
2014 | $ | 531 | $ | 305 | $ | (25 | ) | $ | — | $ | 811 | |||||||||||
2013 | $ | 488 | $ | 78 | $ | (35 | ) | $ | — | $ | 531 | |||||||||||
2012 | $ | 298 | $ | 138 | $ | (30 | ) | $ | 82 | (a) | $ | 488 | ||||||||||
(a) The reserve increased $82,000 in 2012 related to the acquisition of Racine Federated, Inc. Refer to Note 3 “Acquisitions” for a description of the acquisition. | ||||||||||||||||||||||
Inventories | ||||||||||||||||||||||
Inventories are valued at the lower of cost or market. Cost is determined using the first-in, first-out method. The Company estimates and records provisions for obsolete inventories. Changes to the Company's obsolete inventories reserve are as follows: | ||||||||||||||||||||||
Balance at | Net additions | Disposals | Balance | |||||||||||||||||||
beginning | charged to | at end | ||||||||||||||||||||
of year | earnings | of year | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
2014 | $ | 4,236 | $ | 974 | $ | (1,896 | ) | $ | 3,314 | |||||||||||||
2013 | $ | 2,880 | $ | 2,322 | $ | (966 | ) | $ | 4,236 | |||||||||||||
2012 | $ | 2,680 | $ | 1,082 | $ | (882 | ) | $ | 2,880 | |||||||||||||
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 — 39 years; and for machinery and equipment, 3 — 20 years. | ||||||||||||||||||||||
Capitalized Software and Hardware | ||||||||||||||||||||||
Capitalized internal use software and hardware included in prepaid expenses and other current assets in the Consolidated Balance Sheets were $1.2 million and $0.8 million at December 31, 2014 and 2013, respectively. In addition, there was $4.9 million and $2.8 million at December 31, 2014 and 2013, respectively, included in other assets in the Consolidated Balance Sheets. These amounts are amortized on a straight-line basis over the software’s estimated useful lives, ranging from 1 to 5 years. Amortization expense recognized for the years ending December 31, 2014, 2013 and 2012 was $1.4 million, $1.1 million and $0.8 million, respectively. | ||||||||||||||||||||||
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. No adjustments were recorded as a result of these reviews during 2014, 2013 and 2012. | ||||||||||||||||||||||
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 the years ending December 31, 2014, 2013 and 2012 was $5.5 million, $5.0 million and $4.5 million, respectively. Amortization expense expected to be recognized is $5.8 million in each of 2015, 2016 and 2017, $5.7 million in each of 2018 and 2019, and $32.9 million thereafter. The carrying value and accumulated amortization by major class of intangible assets are as follows: | ||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||||||||||
amount | amortization | amount | amortization | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Technologies | $ | 47,157 | $ | 13,244 | $ | 47,157 | $ | 10,384 | ||||||||||||||
Non-compete agreements | 2,022 | 1,243 | 1,932 | 1,048 | ||||||||||||||||||
Licenses | 650 | 424 | 650 | 407 | ||||||||||||||||||
Customer lists | 3,423 | 1,053 | 3,423 | 679 | ||||||||||||||||||
Customer relationships | 20,700 | 3,575 | 11,690 | 2,218 | ||||||||||||||||||
Trade names | 9,325 | 2,066 | 8,615 | 1,414 | ||||||||||||||||||
Total intangibles | $ | 83,277 | $ | 21,605 | $ | 73,467 | $ | 16,150 | ||||||||||||||
Goodwill | ||||||||||||||||||||||
Goodwill is tested for impairment annually during the fourth fiscal 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 reviews during 2014, 2013 and 2012. | ||||||||||||||||||||||
Goodwill was $47.7 million, $44.7 million and $35.9 million at December 31, 2014, 2013 and 2012, respectively. The increases were the result of the National Meter and Automation, Inc. of Centennial, Colorado acquisition in 2014, and the Aquacue, Inc. of Los Gatos, California acquisition in 2013. These acquisitions are further described in Note 3 “Acquisitions.” | ||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||
Revenues are generally recognized upon shipment of product, which corresponds with the transfer of title. The costs of shipping are billed to the customer upon shipment and are included in cost of sales. A small portion of the Company's sales includes shipments of products combined with services, such as meters sold with installation. The product and installation components of these multiple deliverable arrangements are considered separate units of accounting. The value of these separate units of accounting is determined based on their relative fair values determined on a stand-alone basis. Revenue is generally recognized when the last element of the multiple deliverable is delivered, which corresponds with installation and acceptance by the customer. The Company also sells a small number of extended support service agreements on certain products for the period subsequent to the normal support service provided with the original product sale. Revenue is recognized over the service agreement period, which is generally one year. In 2014, the company began offering software as a service with its BEACON AMA product. While the amounts were insignificant in 2014, revenue for this service is recognized on a monthly basis as the service is performed. | ||||||||||||||||||||||
Warranty and After-Sale Costs | ||||||||||||||||||||||
The Company estimates and records provisions for warranties and other after-sale costs in the period in which the sale is recorded, based on a lag factor and historical warranty claim experience. After-sale costs represent a variety of activities outside of the written warranty policy, such as investigation of unanticipated problems after the customer has installed the product, or analysis of water quality issues. Changes in the Company's warranty and after-sale costs reserve are as follows: | ||||||||||||||||||||||
Balance at | Net additions | Costs | Reserve | Balance | ||||||||||||||||||
beginning | charged to | incurred and | acquired | at end | ||||||||||||||||||
of year | earnings | adjustments | of year | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
2014 | $ | 882 | $ | 2,512 | $ | (1,655 | ) | $ | — | $ | 1,739 | |||||||||||
2013 | $ | 881 | $ | 1,005 | $ | (1,068 | ) | $ | 64 | (a) | $ | 882 | ||||||||||
2012 | $ | 1,593 | $ | 719 | $ | (1,431 | ) | $ | — | $ | 881 | |||||||||||
(a) | The reserve increased $64,000 in 2013 related to the acquisition of Aquacue, Inc. Refer to Note 3 “Acquisitions” for a description of the acquisition. | |||||||||||||||||||||
Research and Development | ||||||||||||||||||||||
Research and development costs are charged to expense as incurred and amounted to $9.5 million, $10.5 million and $9.6 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||
Stock-Based Compensation Plans | ||||||||||||||||||||||
As of December 31, 2014, the Company has an Omnibus Incentive Plan under which 700,000 shares are reserved for restricted stock and stock options grants for employees as well as stock grants for directors as described in Note 5 “Stock Compensation.” The plan was approved in 2011 and replaced all prior stock-based plans except for shares and options previously issued under those plans. | ||||||||||||||||||||||
The Company recognizes the cost of stock-based awards in net earnings for all of its stock-based compensation plans on a straight-line basis over the service period of the awards. The Company estimates the fair value of its option awards using the Black-Scholes option-pricing formula, and records compensation expense for stock options ratably over the stock option grant's vesting period. The Company values restricted stock and stock grants for directors on the closing price of the Company's stock on the day the grant was awarded. Total stock compensation expense recognized by the Company was $1.4 million for 2014 and 2013, and $1.3 million for 2012. | ||||||||||||||||||||||
Healthcare | ||||||||||||||||||||||
The Company estimates and records provisions for healthcare claims incurred but not reported, based on medical cost trend analyses, reviews of subsequent payments made and estimates of unbilled amounts. | ||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||
Components of accumulated other comprehensive loss at December 31, 2014 are as follows: | ||||||||||||||||||||||
Pension and postretirement benefits | Foreign currency | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Balance at beginning of period | $ | (9,280 | ) | $ | 1,756 | $ | (7,524 | ) | ||||||||||||||
Other comprehensive income before reclassifications | (4,968 | ) | (1,721 | ) | (6,689 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(1.2) million | 2,357 | — | 2,357 | |||||||||||||||||||
Net current period other comprehensive income, net | (2,611 | ) | (1,721 | ) | (4,332 | ) | ||||||||||||||||
Accumulated other comprehensive (loss) income | $ | (11,891 | ) | $ | 35 | $ | (11,856 | ) | ||||||||||||||
Details of reclassifications out of accumulated other comprehensive loss during 2014 are as follows: | ||||||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Amortization of employee benefit plan items: | ||||||||||||||||||||||
Prior service cost (1) | $ | 161 | ||||||||||||||||||||
Settlement expense (1) | 858 | |||||||||||||||||||||
Amortization of actuarial loss (1) | 2,547 | |||||||||||||||||||||
Total before tax | 3,566 | |||||||||||||||||||||
Income tax benefit | (1,209 | ) | ||||||||||||||||||||
Amount reclassified out of accumulated other comprehensive loss | $ | 2,357 | ||||||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of benefit plan costs in Note 7 “Employee Benefit Plans.” | |||||||||||||||||||||
Components of accumulated other comprehensive loss at December 31, 2013 are as follows: | ||||||||||||||||||||||
Pension and postretirement benefits | Foreign currency | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Balance at beginning of period | $ | (15,532 | ) | $ | 1,584 | $ | (13,948 | ) | ||||||||||||||
Other comprehensive income before reclassifications | 5,116 | 172 | 5,288 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(0.6) million | 1,136 | — | 1,136 | |||||||||||||||||||
Net current period other comprehensive income, net | 6,252 | 172 | 6,424 | |||||||||||||||||||
Accumulated other comprehensive (loss) income | $ | (9,280 | ) | $ | 1,756 | $ | (7,524 | ) | ||||||||||||||
Details of reclassifications out of accumulated other comprehensive loss during 2013 are as follows: | ||||||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Amortization of employee benefit plan items: | ||||||||||||||||||||||
Prior service cost (1) | $ | 161 | ||||||||||||||||||||
Settlement expense (1) | 806 | |||||||||||||||||||||
Amortization of actuarial loss (1) | 786 | |||||||||||||||||||||
Total before tax | 1,753 | |||||||||||||||||||||
Income tax benefit | (617 | ) | ||||||||||||||||||||
Amount reclassified out of accumulated other comprehensive loss | $ | 1,136 | ||||||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of benefit plan costs in Note 7 “Employee Benefit Plans.” | |||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||||||
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 and commercial paper. Because of its short-term nature, the carrying amount of the short-term debt also approximates fair value. Included in other assets are insurance policies on various individuals who were associated with the Company. The carrying amounts of these insurance policies approximate their fair value. | ||||||||||||||||||||||
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 date of 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. | ||||||||||||||||||||||
New Pronouncements | ||||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09 "Revenue from Contracts with Customers." ASU 2014-09 provides a single principles-based, five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, to identify the performance obligations in the contact, to determine the transaction price, to allocate the transaction price to the performance obligations in the contract and to recognize revenue when each performance obligation is satisfied. Revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning on January 1, 2017 and the standard allows for either full retrospective adoption or modified retrospective adoption. The Company is continuing to evaluate the impact that the adoption of this guidance will have on its financial condition, results of operations and the presentation of its financial statements. | ||||||||||||||||||||||
In November 2014, the FASB issued ASU No. 2014-17 “Business Combinations (Topic 805): Pushdown Accounting.” In addition, the staff of the Securities and Exchange Commission released Staff Accounting Bulletin (“SAB”) No. 115, which rescinds SAB Topic 5J, “New Basis of Accounting Required in Certain Circumstances.” Pushdown accounting refers to pushing down the acquirer’s accounting and reporting basis (which is recognized in conjunction with its accounting for a business combination) to the acquiree’s standalone financial statements. Under the new guidance, pushdown accounting is optional for any transaction in which another party obtains control of the reporting company. An acquired entity can make the election to apply the guidance to future change in control events or to its most recent change-in-control event if the financial statements have not been issued. ASU No. 2014-17 was effective upon issuance, which was November 18, 2014. The adoption of ASU No. 2014-17 did not have any impact on the Company’s financial condition or results of operation. |
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common Stock |
Common Stock and Rights Agreement | |
The Company has Common Stock and also Common Share Purchase Rights that trade with the Common Stock. The Common Share Purchase Rights were issued pursuant to the shareholder rights plan discussed below. | |
On February 15, 2008, the Board of Directors of the Company adopted a shareholder rights plan and declared a dividend of one Common Share Purchase Right for each outstanding share of Common Stock of the Company payable to the shareholders of record on May 26, 2008. The plan was effective as of May 27, 2008. Each right entitles the registered holder to purchase from the Company one share of Common Stock at a price of $200.00 per share, subject to adjustment. Subject to certain conditions, the rights are redeemable by the Company and are exchangeable for shares of Common Stock at a favorable price. The rights have no voting power and unless the rights are redeemed, exchanged or terminated earlier, they will expire on May 26, 2018. The rights are an embedded feature of the Company’s Common Stock and not a free-standing instrument, and therefore, do not require separate accounting treatment. | |
Stock Options | |
Stock options to purchase 47,067 shares of the Company's Stock in 2014, 23,258 shares in 2013 and 60,400 shares in 2012 were not included in the computation of dilutive securities because the exercise price was greater than the average stock price for that period, and accordingly their inclusion would have been anti-dilutive. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions |
On October 1, 2014, the Company acquired 100% of the outstanding common stock of National Meter and Automation, Inc. (“National Meter”) of Centennial, Colorado. The purchase is estimated to add approximately $15 million of incremental annual revenues to Badger Meter, after eliminating what would be intercompany sales. National Meter was a major distributor of Badger Meter products for the municipal water utility market, serving customers in Colorado, California, Nevada, Arizona and southern Wyoming. National Meter will become a regional distribution center for Badger Meter. In addition to its primary product line of water meters and meter reading systems, National Meter provides services including meter testing, leak detection, water audits, meter and meter reading system installation and meter reading. | |
The total purchase consideration for National Meter was $22.9 million, which included $20.3 million in cash, a small working capital adjustment and settlement of pre-existing receivables. The Consolidated Balance Sheets at December 31, 2014 included $2.5 million of deferred payments, of which $2.0 million is payable in October 2015 and early 2016 and is recorded in payables, and $0.5 million is payable in early 2017 and is recorded in other long-term liabilities. The Company’s allocation of the purchase price as of December 31, 2014 included $3.9 million of receivables, $4.5 million of inventory, $2.8 million of property, plant and equipment, $9.8 million of intangibles, $3.0 million of goodwill, and $0.1 million of current liabilities. As of December 31, 2014, the preliminary allocation of the purchase price to the assets acquired and liabilities assumed is based upon the estimated fair values at the date of acquisition. The intangible assets acquired are primarily customer relationships with an estimated average useful life of 12 years. There was approximately $0.4 million of transaction costs related to the acquisition that were included in selling, engineering and administration for 2014 in the Company’s Consolidated Statements of Operations. | |
The acquisition was accounted for under the purchase method, and accordingly, the results of operations were included in the Company’s financial statements from the date of acquisition. The acquisition did not have a material impact on the Company’s consolidated financial statements or the notes thereto. | |
On April 1, 2013, the Company acquired 100% of the outstanding common stock of Aquacue, Inc. (“Aquacue”) of Los Gatos, California. The Aquacue acquisition provides the Company with intellectual property that complements and expands the Company’s advanced metering analytics offerings by adding an integrated software platform that allows utility managers to monitor and control their water systems, while providing water management data to consumers. Sales of Aquacue products and the impact on consolidated net earnings were immaterial for 2013. | |
The purchase price was $13.8 million in cash, including a small working capital adjustment. The purchase price included a final $3.0 million payment, of which half was due January 10, 2014 and half was due October 10, 2014, and these amounts were recorded in payables on the Consolidated Balance Sheets at December 31, 2013. The Company’s allocation of the purchase price as of December 31, 2013 included $0.1 million of current assets, $1.3 million of deferred tax assets, $3.9 million of intangibles, $8.8 million of goodwill and $0.3 million of current liabilities. As of December 31, 2013, the Company has completed its analysis for estimating the fair value of the assets acquired and liabilities assumed. The intangible assets acquired are primarily developed technology with an estimated average useful life of 10 years. There was approximately $0.1 million of transaction costs related to the acquisition that were included in selling, engineering and administration for 2013 in the Company’s Consolidated Statements of Operations. The Company merged Aquacue into Badger Meter, Inc. on December 31, 2013. | |
The acquisition was accounted for under the purchase method, and accordingly, the results of operations were included in the Company’s financial statements from the date of acquisition. The acquisition did not have a material impact on the Company’s consolidated financial statements or the notes thereto. | |
On January 31, 2012, the Company completed its acquisition of 100% of the outstanding common stock of Racine Federated, Inc. of Racine, Wisconsin and its subsidiary Premier Control Technologies, Ltd. (“PCT”) located in Thetford, England for approximately $57.3 million in cash, plus a small working capital adjustment. The purchase price included a final $4.6 million payment which was due and paid in 2013. Racine Federated manufactures and markets flow meters for the water industry as well as various industrial metering and specialty products. These products complement and expand the Company's existing lines for the global flow measurement business. | |
The acquisition was accounted for under the purchase method, and accordingly, the results of operations were included in the Company's financial statements from the date of acquisition. The acquisition did not have a material impact on the Company’s consolidated financial statements or the notes thereto. During the fourth quarter of 2012, the Company sold PCT for a nominal amount after the majority of its functions were absorbed by the Company's European subsidiary. The Company also merged Racine Federated into Badger Meter, Inc. on December 31, 2012. |
Shortterm_Debt_and_Credit_Line
Short-term Debt and Credit Lines | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Short-term Debt and Credit Lines | Short-term Debt and Credit Lines | |||||||
Short-term debt at December 31, 2014 and 2013 consisted of: | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Notes payable to banks | $ | 5,977 | $ | 4,795 | ||||
Commercial paper | 69,950 | 65,250 | ||||||
Total short-term debt | $ | 75,927 | $ | 70,045 | ||||
Included in notes payable to banks in 2014 was $4.5 million outstanding under a 4.0 million Euro-base revolving loan facility (U.S. dollar equivalent of $4.8 million at December 31, 2014) that does not expire, and which bore interest at 1.51%. Included in notes payable to banks in 2013 was $4.8 million outstanding under a 4.0 million Euro-based revolving loan facility (U.S. dollar equivalent of $5.5 million at December 31, 2013) that does not expire, and which bore interest at 1.72%. | ||||||||
In May 2012, the Company signed a credit agreement that increased its principal line of credit from $90.0 million to $125.0 million with its primary lender for a three year period. The line was reduced by $16.7 million in May 2013 and was scheduled to be reduced by a similar amount in May 2014. The Company amended this line of credit effective May 1, 2014 to a three-year $105.0 million line of credit that supports commercial paper (up to $70.0 million) and includes $5.0 million of a Euro line of credit. Borrowings of commercial paper bore interest at 1.25% in 2014 and 2013. Under the principal line of credit, the Company had $33.6 million of unused credit lines available out of its total $37.5 million short-term credit lines at December 31, 2014. While the facility is unsecured, there are a number of financial covenants with which the Company is in compliance as of December 31, 2014. |
Stock_Compensation
Stock Compensation | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Stock Compensation | Stock Compensation | |||||||
As of December 31, 2014, the Company has an Omnibus Incentive Plan under which 700,000 shares are reserved for restricted stock and stock options grants for employees as well as stock grants for directors. The plan was approved in 2011 and replaced all prior stock-based plans except for shares and options previously issued under those plans. As of December 31, 2014 and 2013, there were 456,000 shares and 505,000 shares of the Company’s Common Stock available for grant under the 2011 Omnibus Incentive Plan. The Company recognizes the cost of stock-based awards in net earnings for all of its stock-based compensation plans on a straight-line basis over the service period of the awards. The following sections describe the three types of grants in more detail. | ||||||||
Stock Options | ||||||||
The Company estimates the fair value of its option awards using the Black-Scholes option-pricing formula, and records compensation expense for stock options ratably over the stock option grant’s vesting period. Stock option compensation expense recognized by the Company for the year ended December 31, 2014 related to stock options was $0.4 million compared to $0.5 million in 2013 and $0.4 million in 2012. | ||||||||
The following table summarizes the transactions of the Company’s stock option plans for the three-year period ended December 31, 2014: | ||||||||
Number of shares | Weighted-average | |||||||
exercise price | ||||||||
Options outstanding - December 31, 2011 | 245,090 | $ | 30.3 | |||||
Options granted | 45,100 | $ | 36.15 | |||||
Options exercised | (37,450 | ) | $ | 10.25 | ||||
Options forfeited | (5,160 | ) | $ | 37.19 | ||||
Options outstanding - December 31, 2012 | 247,580 | $ | 34.26 | |||||
Options granted | 23,258 | $ | 51.29 | |||||
Options exercised | (66,660 | ) | $ | 24.91 | ||||
Options forfeited | (1,800 | ) | $ | 37.78 | ||||
Options outstanding - December 31, 2013 | 202,378 | $ | 39.27 | |||||
Options granted | 23,958 | $ | 54.36 | |||||
Options exercised | (23,016 | ) | $ | 32.57 | ||||
Options forfeited | — | n/a | ||||||
Options outstanding - December 31, 2014 | 203,320 | $ | 41.8 | |||||
Price range $18.33 — $36.15 | ||||||||
(weighted-average contractual life of 5.9 years) | 56,320 | $ | 34.2 | |||||
Price range $36.16 — $38.41 | ||||||||
(weighted-average contractual life of 5.8 years) | 54,220 | $ | 37.59 | |||||
Price range $38.42 — $54.36 | ||||||||
(weighted-average contractual life of 6.3 years) | 92,780 | $ | 48.88 | |||||
Options outstanding - December 31, 2014 | 203,320 | |||||||
Exercisable options — | ||||||||
31-Dec-12 | 141,740 | $ | 31.72 | |||||
31-Dec-13 | 113,060 | $ | 38.18 | |||||
31-Dec-14 | 111,016 | $ | 39.68 | |||||
The following assumptions were used for valuing options granted in the years ended December 31: | ||||||||
2014 | 2013 | |||||||
Per share fair value of options granted during the period | $22.35 | $20.34 | ||||||
Risk-free interest rate | 1.73 | % | 0.82 | % | ||||
Dividend yield | 1.31 | % | 1.31 | % | ||||
Volatility factor | 49.9 | % | 49.7 | % | ||||
Weighted-average expected life in years | 5.3 | 5.3 | ||||||
The expected life is based on historical exercise behavior and the projected exercise of unexercised stock options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected dividend yield is based on the expected annual dividends divided by the grant date market value of the Company’s Common Stock. The expected volatility is based on the historical volatility of the Company’s Common Stock. | ||||||||
The following table summarizes the aggregate intrinsic value related to options exercised, outstanding and exercisable as of and for the years ended December 31: | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Exercised | $ | 493 | $ | 1,743 | ||||
Outstanding | $ | 3,568 | $ | 3,083 | ||||
Exercisable | $ | 2,184 | $ | 1,846 | ||||
As of December 31, 2014, the unrecognized compensation cost related to stock options was approximately $1.0 million, which will be recognized over a weighted average period of 2.6 years. | ||||||||
Director Stock Grant | ||||||||
Non-employee directors receive an annual award of $50,000 worth of shares of the Company’s Common Stock under the shareholder-approved 2011 Omnibus Incentive Plan. The Company values stock grants for directors on the closing price of the Company’s stock on the day the grant was awarded. The Company records compensation expense for this plan ratably over the annual service period beginning May 1. Director stock compensation expense recognized by the Company for the year ended December 31, 2014, 2013 and 2012 was $0.4 million in each year. As of December 31, 2014, the unrecognized compensation cost related to the director stock award that is expected to be recognized over the remaining four months is estimated to be approximately $0.1 million. | ||||||||
Restricted Stock | ||||||||
The Company periodically issues nonvested shares of the Company's Common Stock to certain eligible employees, generally with a three-year cliff vesting period contingent on employment. The Company values restricted stock on the closing price of the Company's stock on the day the grant was awarded. The Company records compensation expense for these plans ratably over the vesting periods. Nonvested stock compensation expense recognized by the Company for the year ended December 31, 2014 was $1.0 million compared to $0.9 million in 2013 and $0.9 million in 2012. | ||||||||
The fair value of nonvested shares is determined based on the market price of the shares on the grant date. | ||||||||
Shares | Fair value | |||||||
per share | ||||||||
Nonvested at December 31, 2011 | 63,300 | $ | 37.69 | |||||
Granted | 30,325 | $ | 36.15 | |||||
Vested | (17,900 | ) | $ | 38.69 | ||||
Forfeited | (1,900 | ) | $ | 21.77 | ||||
Nonvested at December 31, 2012 | 73,825 | $ | 37.01 | |||||
Granted | 21,425 | $ | 51.12 | |||||
Vested | (16,875 | ) | $ | 38.41 | ||||
Forfeited | (3,900 | ) | $ | 37.69 | ||||
Nonvested at December 31, 2013 | 74,475 | $ | 40.54 | |||||
Granted | 21,956 | $ | 54.36 | |||||
Vested | (24,350 | ) | $ | 36.59 | ||||
Forfeited | (3,625 | ) | $ | 41.61 | ||||
Nonvested at December 31, 2014 | 68,456 | $ | 46.32 | |||||
As of December 31, 2014, there was $1.3 million of unrecognized compensation cost related to nonvested restricted stock that is expected to be recognized over a weighted average period of 1.3 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Commitments | ||||
The Company makes commitments in the normal course of business. The Company leases equipment and facilities under non-cancelable operating leases, some of which contain renewal options. Total future minimum lease payments consisted of the following at December 31, 2014: | ||||
Total leases | ||||
(In thousands) | ||||
2015 | $ | 2,282 | ||
2016 | 1,861 | |||
2017 | 1,688 | |||
2018 | 1,451 | |||
2019 | 1,274 | |||
Thereafter | 5,845 | |||
Total lease obligations | $ | 14,401 | ||
Total rental expense charged to operations under all operating leases was $3.1 million, $2.8 million and $2.7 million in 2014, 2013 and 2012, respectively. | ||||
Contingencies | ||||
In the normal course of business, the Company is named in legal proceedings. There are currently no material legal proceedings pending with respect to the Company. The more significant legal proceedings are discussed below. | ||||
The Company is subject to contingencies related to environmental laws and regulations. The Company is named as one of many potentially responsible parties in two landfill lawsuits. The landfill sites are impacted by the Federal Comprehensive Environmental Response, Compensation and Liability Act and other environmental laws and regulations. At this time, the Company does not believe the ultimate resolution of these matters will have a material adverse effect on the Company’s financial position or results of operations, either from a cash flow perspective or on the financial statements as a whole. This belief is based on the Company’s assessment of its limited past involvement with these landfill sites as well as the substantial involvement of and government focus on other named third parties with these landfill sites. However, due to the inherent uncertainties of such proceedings, the Company cannot predict the ultimate outcome of any of these matters. A future change in circumstances with respect to these specific matters or with respect to sites formerly or currently owned or operated by the Company, off-site disposal locations used by the Company, and property owned by third parties that is near such sites, could result in future costs to the Company and such amounts could be material. Expenditures for compliance with environmental control provisions and regulations during 2014, 2013 and 2012 were not material. | ||||
Like other companies in recent years, the Company is named as a defendant in numerous pending multi-claimant/multi-defendant lawsuits alleging personal injury as a result of exposure to asbestos, manufactured by third parties, and integrated into or sold with a very limited number of the Company’s products. The Company is vigorously defending itself against these claims. Although it is not possible to predict the ultimate outcome of these matters, the Company does not believe the ultimate resolution of these issues will have a material adverse effect on the Company’s financial position or results of operations, either from a cash flow perspective or on the financial statements as a whole. This belief is based in part on the fact that no claimant has proven or substantially demonstrated asbestos exposure caused by products manufactured or sold by the Company and that a number of cases have been voluntarily dismissed. | ||||
The Company relies on single suppliers for most brass castings and certain electronic subassemblies in several of its product lines. The Company believes these items would be available from other sources, but that the loss of certain suppliers would result in a higher cost of materials, delivery delays, short-term increases in inventory and higher quality control costs in the short term. The Company attempts to mitigate these risks by working closely with key suppliers, purchasing minimal amounts from alternative suppliers and by purchasing business interruption insurance where appropriate. | ||||
The Company reevaluates its exposures on a periodic basis and makes adjustments to reserves as appropriate. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||
The Company maintains a non-contributory defined benefit pension plan that covers substantially all U.S. employees who were employed at December 31, 2011. After that date, no further benefits are being accrued in this plan. For the frozen pension plan, benefits are based primarily on years of service and, for certain plans, levels of compensation. | ||||||||||||||||
The Company also maintains supplemental non-qualified plans for certain officers and other key employees, and an Employee Savings and Stock Option Plan (“ESSOP”). | ||||||||||||||||
The Company also has a postretirement healthcare benefit plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. Employees are eligible to receive postretirement healthcare benefits upon meeting certain age and service requirements. No employees hired after October 31, 2004 are eligible to receive these benefits. This plan requires employee contributions to offset benefit costs. | ||||||||||||||||
Amounts included in accumulated other comprehensive loss, net of tax, at December 31, 2014 that have not yet been recognized in net periodic benefit cost are as follows: | ||||||||||||||||
Pension | Other | |||||||||||||||
plans | postretirement | |||||||||||||||
benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Prior service cost | $ | — | $ | 6 | ||||||||||||
Net actuarial loss | $ | 11,156 | $ | 314 | ||||||||||||
Amounts included in accumulated other comprehensive loss, net of tax, at December 31, 2014 expected to be recognized in net periodic benefit cost during the fiscal year ending December 31, 2015 are as follows: | ||||||||||||||||
Pension | Other | |||||||||||||||
plans | postretirement | |||||||||||||||
benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Prior service credit | $ | — | $ | 33 | ||||||||||||
Net actuarial loss | $ | 471 | $ | — | ||||||||||||
Qualified Pension Plan | ||||||||||||||||
The Company maintains a non-contributory defined benefit pension plan (sometimes referred to as the “qualified pension plan”) for certain employees. On December 31, 2010, the Company froze the qualified pension plan for its non-union participants and formed a new defined contribution feature within the ESSOP plan in which each employee received a similar benefit. On December 31, 2011, the Company froze the qualified pension plan for its union participants and included them in the same defined contribution feature within the ESSOP. After December 31, 2011, employees receive no future benefits under the qualified pension benefit plan as benefits were frozen and the employees now receive a defined contribution in its place. Employees will continue to earn returns on their frozen balances. | ||||||||||||||||
The following table sets forth the components of net periodic pension cost for the years ended December 31, 2014, 2013 and 2012 based on a December 31 measurement date: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Service cost — benefits earned during the year | $ | 4 | $ | 5 | $ | 6 | ||||||||||
Interest cost on projected benefit obligations | 1,888 | 1,842 | 2,205 | |||||||||||||
Expected return on plan assets | (2,806 | ) | (2,744 | ) | (3,190 | ) | ||||||||||
Amortization of net loss | 606 | 719 | 645 | |||||||||||||
Settlement expense | 858 | 806 | 1,075 | |||||||||||||
Net periodic pension cost | $ | 550 | $ | 628 | $ | 741 | ||||||||||
Actuarial assumptions used in the determination of the net periodic pension cost are: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.47 | % | 3.68 | % | 4.69 | % | ||||||||||
Expected long-term return on plan assets | 6.5 | % | 6.5 | % | 7 | % | ||||||||||
Rate of compensation increase | n/a | n/a | n/a | |||||||||||||
The Company's discount rate assumptions for the qualified pension plan are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plan. The assumptions for expected long-term rates of return on assets are based on historical experience and estimated future investment returns, taking into consideration anticipated asset allocations, investment strategies and the views of various investment professionals. The use of these assumptions can cause volatility if actual results differ from expected results. | ||||||||||||||||
The following table provides a reconciliation of benefit obligations, plan assets and funded status based on a December 31 measurement date: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of plan year | $ | 45,561 | $ | 50,700 | ||||||||||||
Service cost | 4 | 5 | ||||||||||||||
Interest cost | 1,888 | 1,842 | ||||||||||||||
Actuarial (gain)/loss | 4,989 | (3,208 | ) | |||||||||||||
Benefits paid | (4,242 | ) | (3,778 | ) | ||||||||||||
Projected benefit obligation at measurement date | $ | 48,200 | $ | 45,561 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of plan year | $ | 49,873 | $ | 46,547 | ||||||||||||
Actual return on plan assets | 3,025 | 7,104 | ||||||||||||||
Benefits paid | (4,242 | ) | (3,778 | ) | ||||||||||||
Fair value of plan assets at measurement date | $ | 48,656 | $ | 49,873 | ||||||||||||
Funded status of the plan: | ||||||||||||||||
Benefit plan assets of benefit obligation | 456 | 4,312 | ||||||||||||||
Prepaid pension asset (accrued pension liability) | $ | 456 | $ | 4,312 | ||||||||||||
The actuarial assumption used in the determination of the benefit obligation of the above data is: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Discount rate | 3.81 | % | 4.47 | % | ||||||||||||
The fair value of the qualified pension plan assets was $48.7 million at December 31, 2014 and $49.9 million at December 31, 2013. The variation in the fair value of the assets between years was due to the change in the market value of the underlying investments and benefits paid. Estimated future benefit payments expected to be paid in each of the next five years beginning with 2015 are $4.5 million, $4.3 million, $4.1 million, $3.7 million and $3.4 million, with an aggregate of $16.4 million for the five years thereafter. As of the most recent actuarial measurement date, the Company is not required to make a minimum contribution for the 2015 calendar year. | ||||||||||||||||
Historically the Company employed a total return investment approach whereby a mix of equities and fixed income investments were used to maximize the long-term return of plan assets for a prudent level of risk. Because of volatility in market returns and the plan’s current funding status, the decision was made in 2014 to move towards a liability driven investing strategy whereby the assets are primarily fixed income investments. The fixed income investments chosen under this strategy, while not precisely the same, are meant to parallel the investments selected in determining the discount rate used to calculate the Company’s pension liability. The purpose of this strategy is to minimize equity exposure and interest risk and thereby maintain the funding status of the plan, regardless of movement in interest rates. In 2014, the Company adjusted the investment portfolio to reduce its equity allocation and introduced higher fixed-income investments that matched the duration of the estimated pension liability. The remaining equity investments are diversified across various stocks, as well as growth, value, and small and large capitalizations. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies. | ||||||||||||||||
As a result of the change in investing strategy in 2014, changes were made to the investment policy for the plan. The target allocations for plan assets are 0%-18% for public equities, 0%-14% for bank loans, and 68%-100% for traditional and cash balance liability-hedging assets. | ||||||||||||||||
Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority. Level 2 inputs consist of inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for determining the fair value of assets or liabilities that reflect assumptions that market participants would use in pricing assets or liabilities. The plan uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. | ||||||||||||||||
The fair value of the Company's qualified pension plan assets by category at December 31, 2014 are as follows: | ||||||||||||||||
Market | Quoted | Significant | Significant | |||||||||||||
value | prices in active | observable | unobservable | |||||||||||||
markets for | inputs | inputs | ||||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities (a) | $ | 6,356 | $ | — | $ | 6,356 | $ | — | ||||||||
Fixed income funds (b) | 41,351 | — | 41,351 | — | ||||||||||||
Cash/cash equivalents (c) | 949 | 949 | — | — | ||||||||||||
Total | $ | 48,656 | $ | 949 | $ | 47,707 | $ | — | ||||||||
(a) | The Equity funds in aggregate are well diversified by market capitalization, investment style and geography. The funds seek to provide investment results approximating the aggregate price and dividend performance of securities included in the S&P 500 Index, Russell 2000 Index and MSCI All Country World ex-US Index. | |||||||||||||||
(b) | The Fixed Income funds consist of bonds. In aggregate, the funds seek to provide investment return approximating the return of the Plan’s obligations. The funds consist of Long Credit bonds, Intermediate Credit bonds, Short Duration Government Credit bonds and Bank Loans. | |||||||||||||||
(c) | This category comprises the cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||
The fair value of the Company’s qualified pension plan assets by category at December 31, 2013 are as follows: | ||||||||||||||||
Market | Quoted | Significant | Significant | |||||||||||||
value | prices in active | observable | unobservable | |||||||||||||
markets for | inputs | inputs | ||||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities (a) | $ | 27,049 | $ | 27,049 | $ | — | $ | — | ||||||||
Fixed income funds (b) | 18,990 | 18,990 | — | — | ||||||||||||
Cash/cash equivalents (c) | 3,834 | 3,834 | — | — | ||||||||||||
Total | $ | 49,873 | $ | 49,873 | $ | — | $ | — | ||||||||
(a) | This category includes investments in equity securities of large, small and medium sized companies, equity securities of foreign companies and equity funds, or 52.8%, 11.1%, 12.1%, 17.2% and 6.8% of total assets, respectively. Of the total equity amount, 11.1% was invested in common stocks in a wide variety of industries and 88.9% was invested in mutual funds. The funds are valued using the closing market prices at December 31, 2013. | |||||||||||||||
(b) | This category includes investments in investment-grade fixed-income instruments and corporate bonds. Government instruments were 33.4% of the total. The funds are valued using the closing market prices at December 31, 2013. | |||||||||||||||
(c) | This category comprises the cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||
The pension plan has a separately determined accumulated benefit obligation that is the actuarial present value of benefits based on service rendered and current and past compensation levels. Prior to December 31, 2012, this differed from the projected benefit obligation in that it included no assumption about future compensation levels. The accumulated benefit obligation was $48.2 million at December 31, 2014 and $45.6 million at December 31, 2013. | ||||||||||||||||
Supplemental Non-qualified Unfunded Plans | ||||||||||||||||
The Company also maintains supplemental non-qualified unfunded plans for certain officers and other key employees. Expense for these plans was $0.3 million for the year ended 2014, $0.2 million for the year ended 2013, and $0.3 million for the year ended 2012. The amount accrued was $1.6 million and $1.5 million as of December 31, 2014 and 2013, respectively. Amounts were determined based on similar assumptions as the qualified pension plan as of the December 31 measurement date for 2014 and 2013. | ||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||
The Company has a postretirement plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. The following table sets forth the components of net periodic postretirement benefit cost for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Service cost, benefits attributed for service of active employees for the period | $ | 130 | $ | 154 | $ | 143 | ||||||||||
Interest cost on the accumulated postretirement benefit obligation | 269 | 255 | 295 | |||||||||||||
Amortization of prior service cost | 161 | 161 | 161 | |||||||||||||
Net periodic postretirement benefit cost | $ | 560 | $ | 570 | $ | 599 | ||||||||||
The discount rate used to measure the net periodic postretirement benefit cost was 4.73% for 2014, 3.92% for 2013 and 4.79% for 2012. It is the Company's policy to fund healthcare benefits on a cash basis. Because the plans are unfunded, there are no plan assets. The following table provides a reconciliation of the projected benefit obligation at the Company's December 31 measurement date: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Benefit obligation at beginning of year | $ | 6,376 | $ | 6,940 | ||||||||||||
Service cost | 130 | 154 | ||||||||||||||
Interest cost | 269 | 255 | ||||||||||||||
Actuarial loss (gain) | 462 | (746 | ) | |||||||||||||
Plan participants' contributions | 708 | 716 | ||||||||||||||
Benefits paid | (1,178 | ) | (943 | ) | ||||||||||||
Benefit obligation and funded status at end of year | $ | 6,767 | $ | 6,376 | ||||||||||||
The amounts recognized in the Consolidated Balance Sheets at December 31 are: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Accrued compensation and employee benefits | $ | 425 | $ | 442 | ||||||||||||
Accrued non-pension postretirement benefits | 6,342 | 5,934 | ||||||||||||||
Amounts recognized at December 31 | $ | 6,767 | $ | 6,376 | ||||||||||||
The discount rate used to measure the accumulated postretirement benefit obligation was 4.01% for 2014 and 4.73% for 2013. The Company's discount rate assumptions for its postretirement benefit plan are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plan. Because the plan requires the Company to establish fixed Company contribution amounts for retiree healthcare benefits, future healthcare cost trends do not generally impact the Company's accruals or provisions. | ||||||||||||||||
Estimated future benefit payments of postretirement benefits, assuming increased cost sharing, expected to be paid in each of the next five years beginning with 2015 are $0.4 million in each year of 2015 and 2016, $0.5 million in each year of 2017, 2018 and 2019, with an aggregate of $2.2 million for the five years thereafter. These amounts can vary significantly from year to year because the cost sharing estimates can vary from actual expenses as the Company is self-insured. | ||||||||||||||||
Badger Meter Employee Savings and Stock Ownership Plan | ||||||||||||||||
In 2010, the Company restructured the outstanding debt of its ESSOP by loaning the ESSOP $0.5 million to repay a loan to a third party and loaning the ESSOP an additional $1.0 million to purchase additional shares of the Company’s Common Stock for future 401(k) savings plan matches under a program that will expire on December 31, 2020. Under this program, the Company agreed to pay the principal and interest on the new loan amount of $1.5 million. The receivable from the ESSOP and the related obligation were therefore netted to zero on the Company’s Consolidated Balance Sheets at December 31, 2014 and 2013. The terms of the loan call for equal payments of principal with the final payment due on December 31, 2020, and prepayments are allowed under the plan terms. At December 31, 2014, $0.9 million of the loan balance remained. | ||||||||||||||||
The Company made principal payments of $154,000, $154,000 and $256,000 in 2014, 2013 and 2012, respectively. The associated commitments released shares of Common Stock (11,077 shares in 2014 for the 2013 obligation, 9,918 shares in 2013 for the 2012 obligation, and 16,151 shares in 2012 for the 2011 obligation) for allocation to participants in the ESSOP. The ESSOP held unreleased shares of 72,362, 83,439 and 93,357 as of December 31, 2014, 2013 and 2012, respectively, with a fair value of $4.3 million, $4.5 million and $4.4 million as of December 31, 2014, 2013 and 2012, respectively. Unreleased shares are not considered outstanding for purposes of computing earnings per share. | ||||||||||||||||
The ESSOP includes a voluntary 401(k) savings plan that allows certain employees to defer up to 20% of their income on a pretax basis subject to limits on maximum amounts. The Company matches 25% of each employee’s contribution, with the match percentage applying to a maximum of 7% of each employee's salary. The match is paid using the Company's Common Stock released through the ESSOP loan payments. For ESSOP shares purchased prior to 1993, compensation expense is recognized based on the original purchase price of the shares released and dividends on unreleased shares are charged to compensation expense. For shares purchased in or after 1993, expense is based on the market value of the shares on the date released and dividends on unreleased shares are charged to compensation expense. Compensation expense of $0.3 million was recognized for the match for each of 2014, 2013 and 2012. | ||||||||||||||||
On December 31, 2010, the Company froze the qualified pension plan for its non-union participants and formed a new defined contribution feature within the ESSOP plan in which each employee received a similar benefit. On December 31, 2011, the Company froze the qualified pension plan for its union participants and included them in the same defined contribution feature within the ESSOP. For 2014, compensation expense under the defined contribution feature totaled $2.3 million. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes and recording the related deferred tax assets and liabilities. | ||||||||||||
Details of earnings before income taxes are as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Domestic | $ | 41,022 | $ | 34,687 | $ | 40,650 | ||||||
Foreign | 3,890 | 3,322 | 2,821 | |||||||||
Total | $ | 44,912 | $ | 38,009 | $ | 43,471 | ||||||
The provision (benefit) for income taxes is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 14,362 | $ | 12,630 | $ | 13,908 | ||||||
State | 1,086 | 2,394 | 1,455 | |||||||||
Foreign | 1,120 | 802 | 507 | |||||||||
Deferred: | ||||||||||||
Federal | (1,323 | ) | (2,174 | ) | (663 | ) | ||||||
State | 208 | (228 | ) | (165 | ) | |||||||
Foreign | (219 | ) | (32 | ) | 397 | |||||||
Total | $ | 15,234 | $ | 13,392 | $ | 15,439 | ||||||
The provision for income taxes differs from the amount that would be provided by applying the statutory | ||||||||||||
U.S. corporate income tax rate in each year due to the following items: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Provision at statutory rate | $ | 15,720 | $ | 13,303 | $ | 15,215 | ||||||
State income taxes, net of federal tax benefit | 841 | 1,408 | 1,018 | |||||||||
Foreign income taxes | (454 | ) | (393 | ) | (87 | ) | ||||||
Domestic production activities deduction | (675 | ) | (498 | ) | (529 | ) | ||||||
Tax audit settlements | — | — | (101 | ) | ||||||||
Other | (198 | ) | (428 | ) | (77 | ) | ||||||
Actual provision | $ | 15,234 | $ | 13,392 | $ | 15,439 | ||||||
The components of deferred income taxes as of December 31 are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Reserve for receivables and inventories | $ | 2,769 | $ | 2,850 | ||||||||
Accrued compensation | 1,105 | 1,087 | ||||||||||
Payables | 694 | 364 | ||||||||||
Non-pension postretirement benefits | 2,601 | 2,447 | ||||||||||
Net operating loss and credit carryforwards | 1,668 | 2,645 | ||||||||||
Accrued pension benefits | 1,122 | — | ||||||||||
Accrued employee benefits | 2,405 | 1,681 | ||||||||||
Other | 858 | 793 | ||||||||||
Total deferred tax assets | 13,222 | 11,867 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | 4,570 | 4,408 | ||||||||||
Amortization | 10,881 | 12,165 | ||||||||||
Prepaid pension benefits | — | 236 | ||||||||||
Other | — | 14 | ||||||||||
Total deferred tax liabilities | 15,451 | 16,823 | ||||||||||
Net deferred tax liabilities | $ | (2,229 | ) | $ | (4,956 | ) | ||||||
At December 31, 2014 and 2013, the Company had federal carryforwards of $4.1 million and $5.0 million, respectively. At December 31, 2014 and 2013, the Company also had state net operating loss carryforwards of $4.1 million and $5.0 million, respectively. The Company’s U.S. federal and state net operating loss carryforwards expire between 2029 and 2033. | ||||||||||||
At December 31, 2014 and 2013, the Company had federal and state general business credit carryforwards of $0.2 million in each year. The Company’s U.S. federal and state tax credit carryforwards expire between 2029 and 2033. | ||||||||||||
The Company’s federal and state net operating loss and federal and state credit carryforwards are limited on an annual basis to $1.2 million under Internal Revenue Code Section 382 and Section 383. The federal and state net operating loss carryforwards must be fully utilized prior to the utilization of the federal and state credit carryforwards. | ||||||||||||
No provision for federal income taxes was made on the earnings of foreign subsidiaries that are considered indefinitely invested or that would be offset by foreign tax credits upon distribution. Such undistributed earnings at December 31, 2014 were $20.5 million. | ||||||||||||
Changes in the Company's gross liability for unrecognized tax benefits, excluding interest and penalties, are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Balance at beginning of year | $ | 880 | $ | 698 | ||||||||
Increases in unrecognized tax benefits as a result of positions taken during the prior period | 11 | 80 | ||||||||||
Increases in unrecognized tax benefits as a result of positions taken during the current period | 185 | 216 | ||||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (230 | ) | (114 | ) | ||||||||
Balance at end of year | $ | 846 | $ | 880 | ||||||||
The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits during the fiscal year ending December 31, 2015. To the extent these unrecognized tax benefits are ultimately recognized, they will impact the effective tax rate. | ||||||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years prior to 2011, and, with few exceptions, state and local income tax examinations by tax authorities for years prior to 2010. The Company's policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. Accrued interest was approximately $0.1 million at both December 31, 2014 and 2013, and there were no penalties accrued in either year. | ||||||||||||
The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt |
In 2010, the Company restructured the outstanding debt of its ESSOP by loaning the ESSOP $0.5 million to repay a loan to a third party and loaning the ESSOP an additional $1.0 million to purchase additional shares of the Company’s Common Stock for future 401(k) savings plan matches under a program that will expire on December 31, 2020. Under this program, the Company agreed to pay the principal and interest on the new loan amount of $1.5 million. The receivable from the ESSOP and the related obligation were therefore netted to zero on the Company’s Consolidated Balance Sheets at December 31, 2014 and 2013. The terms of the loan call for equal payments of principal with the final payment due on December 31, 2020, and prepayments are allowed under the plan terms. At December 31, 2014, $0.9 million of the loan balance remained. |
Industry_Segment_and_Geographi
Industry Segment and Geographic Areas | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Industry Segment and Geographic Areas | Industry Segment and Geographic Areas | |||||||||||
The Company is an innovator, manufacturer and a marketer of products incorporating flow measurement and control technologies, which comprise one reportable segment. The Company manages and evaluates its operations as one segment primarily due to similarities in the nature of the products, production processes, customers and methods of distribution. | ||||||||||||
Information regarding revenues by geographic area is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
United States | $ | 309,651 | $ | 290,019 | $ | 271,045 | ||||||
Foreign: | ||||||||||||
Asia | 10,647 | 8,085 | 10,075 | |||||||||
Canada | 12,092 | 8,514 | 8,752 | |||||||||
Europe | 19,448 | 15,677 | 16,001 | |||||||||
Mexico | 3,941 | 4,226 | 6,636 | |||||||||
Middle East | 6,221 | 1,604 | 2,232 | |||||||||
Other | 2,768 | 5,997 | 4,919 | |||||||||
Total | $ | 364,768 | $ | 334,122 | $ | 319,660 | ||||||
Information regarding assets by geographic area is as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Long-lived assets (all non-current assets): | ||||||||||||
United States | $ | 162,368 | $ | 150,997 | ||||||||
Foreign: | ||||||||||||
Europe | 16,273 | 17,409 | ||||||||||
Mexico | 21,412 | 20,489 | ||||||||||
Total | $ | 200,053 | $ | 188,895 | ||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Total assets: | ||||||||||||
United States | $ | 278,094 | $ | 255,881 | ||||||||
Foreign: | ||||||||||||
Europe | 38,453 | 36,838 | ||||||||||
Mexico | 24,611 | 23,339 | ||||||||||
Total | $ | 341,158 | $ | 316,058 | ||||||||
Unaudited_Quarterly_Results_of
Unaudited: Quarterly Results of Operations, Common Stock Price and Dividends | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Unaudited Quarterly Results of Operations Common Stock Price and Dividends | Unaudited: Quarterly Results of Operations, Common Stock Price and Dividends | |||||||||||||||
Quarter ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In thousands except per share data) | ||||||||||||||||
2014 | ||||||||||||||||
Net sales | $ | 83,496 | $ | 95,662 | $ | 96,271 | $ | 89,339 | ||||||||
Gross margin | $ | 28,951 | $ | 34,831 | $ | 36,465 | $ | 30,895 | ||||||||
Net earnings | $ | 4,632 | $ | 8,814 | $ | 10,231 | $ | 6,001 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.33 | $ | 0.62 | $ | 0.71 | $ | 0.42 | ||||||||
Diluted | $ | 0.32 | $ | 0.61 | $ | 0.71 | $ | 0.42 | ||||||||
Dividends declared | $ | 0.18 | $ | 0.18 | $ | 0.19 | $ | 0.19 | ||||||||
Stock price: | ||||||||||||||||
High | $ | 56.03 | $ | 56.96 | $ | 54.33 | $ | 60.91 | ||||||||
Low | $ | 47.9 | $ | 46.47 | $ | 47.32 | $ | 47.46 | ||||||||
Quarter-end close | $ | 55.1 | $ | 52.65 | $ | 50.45 | $ | 59.35 | ||||||||
2013 | ||||||||||||||||
Net sales | $ | 71,808 | $ | 88,341 | $ | 92,963 | $ | 81,010 | ||||||||
Gross margin | $ | 25,037 | $ | 29,846 | $ | 33,103 | $ | 29,003 | ||||||||
Net earnings | $ | 2,907 | $ | 6,281 | $ | 9,049 | $ | 6,380 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.44 | $ | 0.63 | $ | 0.44 | ||||||||
Diluted | $ | 0.2 | $ | 0.44 | $ | 0.63 | $ | 0.44 | ||||||||
Dividends declared | $ | 0.17 | $ | 0.17 | $ | 0.18 | $ | 0.18 | ||||||||
Stock price: | ||||||||||||||||
High | $ | 54.2 | $ | 54.28 | $ | 49.96 | $ | 56.36 | ||||||||
Low | $ | 46.82 | $ | 41.88 | $ | 43.96 | $ | 44.8 | ||||||||
Quarter-end close | $ | 53.52 | $ | 44.55 | $ | 46.5 | $ | 54.5 | ||||||||
The Company's Common Stock is listed on the New York Stock Exchange under the symbol BMI. Earnings per share are computed independently for each quarter. As such, the annual per share amount may not equal the sum of the quarterly amounts due to rounding. The Company currently anticipates continuing to pay cash dividends. Shareholders of record as of December 31, 2014 and 2013 totaled 948 and 969, respectively. Voting trusts and street name shareholders are counted as single shareholders for this purpose. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
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. | |
Inventories | Inventories |
Inventories are valued at the lower of cost or market. Cost is determined using the first-in, first-out method. The Company estimates and records provisions for obsolete inventories. | |
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 — 39 years; and for machinery and equipment, 3 — 20 years. | |
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. No adjustments were recorded as a result of these reviews during 2014, 2013 and 2012. | |
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. | |
Goodwill | Goodwill |
Goodwill is tested for impairment annually during the fourth fiscal 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 reviews during 2014, 2013 and 2012. | |
Revenue Recognition | Revenue Recognition |
Revenues are generally recognized upon shipment of product, which corresponds with the transfer of title. The costs of shipping are billed to the customer upon shipment and are included in cost of sales. A small portion of the Company's sales includes shipments of products combined with services, such as meters sold with installation. The product and installation components of these multiple deliverable arrangements are considered separate units of accounting. The value of these separate units of accounting is determined based on their relative fair values determined on a stand-alone basis. Revenue is generally recognized when the last element of the multiple deliverable is delivered, which corresponds with installation and acceptance by the customer. The Company also sells a small number of extended support service agreements on certain products for the period subsequent to the normal support service provided with the original product sale. Revenue is recognized over the service agreement period, which is generally one year. In 2014, the company began offering software as a service with its BEACON AMA product. While the amounts were insignificant in 2014, revenue for this service is recognized on a monthly basis as the service is performed. | |
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 problems after the customer has installed the product, or analysis of water quality issues. | |
Research and Development | Research and Development |
Research and development costs are charged to expense as incurred | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans |
As of December 31, 2014, the Company has an Omnibus Incentive Plan under which 700,000 shares are reserved for restricted stock and stock options grants for employees as well as stock grants for directors as described in Note 5 “Stock Compensation.” The plan was approved in 2011 and replaced all prior stock-based plans except for shares and options previously issued under those plans. | |
The Company recognizes the cost of stock-based awards in net earnings for all of its stock-based compensation plans on a straight-line basis over the service period of the awards. The Company estimates the fair value of its option awards using the Black-Scholes option-pricing formula, and records compensation expense for stock options ratably over the stock option grant's vesting period. The Company values restricted stock and stock grants for directors on the closing price of the Company's stock on the day the grant was awarded. | |
Healthcare | Healthcare |
The Company estimates and records provisions for healthcare claims incurred but not reported, based on medical cost trend analyses, reviews of subsequent payments made and estimates of unbilled amounts. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
Fair Value 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 and commercial paper. Because of its short-term nature, the carrying amount of the short-term debt also approximates fair value. Included in other assets are insurance policies on various individuals who were associated with the Company. The carrying amounts of these insurance policies approximate their fair value. | |
Subsequent Events, Policy | 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 date of 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. | |
New Pronouncement | New Pronouncements |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09 "Revenue from Contracts with Customers." ASU 2014-09 provides a single principles-based, five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, to identify the performance obligations in the contact, to determine the transaction price, to allocate the transaction price to the performance obligations in the contract and to recognize revenue when each performance obligation is satisfied. Revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning on January 1, 2017 and the standard allows for either full retrospective adoption or modified retrospective adoption. The Company is continuing to evaluate the impact that the adoption of this guidance will have on its financial condition, results of operations and the presentation of its financial statements. | |
In November 2014, the FASB issued ASU No. 2014-17 “Business Combinations (Topic 805): Pushdown Accounting.” In addition, the staff of the Securities and Exchange Commission released Staff Accounting Bulletin (“SAB”) No. 115, which rescinds SAB Topic 5J, “New Basis of Accounting Required in Certain Circumstances.” Pushdown accounting refers to pushing down the acquirer’s accounting and reporting basis (which is recognized in conjunction with its accounting for a business combination) to the acquiree’s standalone financial statements. Under the new guidance, pushdown accounting is optional for any transaction in which another party obtains control of the reporting company. An acquired entity can make the election to apply the guidance to future change in control events or to its most recent change-in-control event if the financial statements have not been issued. ASU No. 2014-17 was effective upon issuance, which was November 18, 2014. The adoption of ASU No. 2014-17 did not have any impact on the Company’s financial condition or results of operation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Allowance for doubtful accounts | Changes in the Company's allowance for doubtful accounts are as follows: | |||||||||||||||||||||
Balance at | Provision | Write-offs | Reserve | Balance | ||||||||||||||||||
beginning | and reserve | less | acquired | at end | ||||||||||||||||||
of year | adjustments | recoveries | of year | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
2014 | $ | 531 | $ | 305 | $ | (25 | ) | $ | — | $ | 811 | |||||||||||
2013 | $ | 488 | $ | 78 | $ | (35 | ) | $ | — | $ | 531 | |||||||||||
2012 | $ | 298 | $ | 138 | $ | (30 | ) | $ | 82 | (a) | $ | 488 | ||||||||||
(a) The reserve increased $82,000 in 2012 related to the acquisition of Racine Federated, Inc. Refer to Note 3 “Acquisitions” for a description of the acquisition. | ||||||||||||||||||||||
Obsolete inventories reserve | Changes to the Company's obsolete inventories reserve are as follows: | |||||||||||||||||||||
Balance at | Net additions | Disposals | Balance | |||||||||||||||||||
beginning | charged to | at end | ||||||||||||||||||||
of year | earnings | of year | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
2014 | $ | 4,236 | $ | 974 | $ | (1,896 | ) | $ | 3,314 | |||||||||||||
2013 | $ | 2,880 | $ | 2,322 | $ | (966 | ) | $ | 4,236 | |||||||||||||
2012 | $ | 2,680 | $ | 1,082 | $ | (882 | ) | $ | 2,880 | |||||||||||||
Intangible Assets | The carrying value and accumulated amortization by major class of intangible assets are as follows: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||||||||||
amount | amortization | amount | amortization | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Technologies | $ | 47,157 | $ | 13,244 | $ | 47,157 | $ | 10,384 | ||||||||||||||
Non-compete agreements | 2,022 | 1,243 | 1,932 | 1,048 | ||||||||||||||||||
Licenses | 650 | 424 | 650 | 407 | ||||||||||||||||||
Customer lists | 3,423 | 1,053 | 3,423 | 679 | ||||||||||||||||||
Customer relationships | 20,700 | 3,575 | 11,690 | 2,218 | ||||||||||||||||||
Trade names | 9,325 | 2,066 | 8,615 | 1,414 | ||||||||||||||||||
Total intangibles | $ | 83,277 | $ | 21,605 | $ | 73,467 | $ | 16,150 | ||||||||||||||
Warranty and after-sale costs reserve | Changes in the Company's warranty and after-sale costs reserve are as follows: | |||||||||||||||||||||
Balance at | Net additions | Costs | Reserve | Balance | ||||||||||||||||||
beginning | charged to | incurred and | acquired | at end | ||||||||||||||||||
of year | earnings | adjustments | of year | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
2014 | $ | 882 | $ | 2,512 | $ | (1,655 | ) | $ | — | $ | 1,739 | |||||||||||
2013 | $ | 881 | $ | 1,005 | $ | (1,068 | ) | $ | 64 | (a) | $ | 882 | ||||||||||
2012 | $ | 1,593 | $ | 719 | $ | (1,431 | ) | $ | — | $ | 881 | |||||||||||
(a) | The reserve increased $64,000 in 2013 related to the acquisition of Aquacue, Inc. Refer to Note 3 “Acquisitions” for a description of the acquisition. | |||||||||||||||||||||
Accumulated other comprehensive income (loss) | Components of accumulated other comprehensive loss at December 31, 2014 are as follows: | |||||||||||||||||||||
Pension and postretirement benefits | Foreign currency | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Balance at beginning of period | $ | (9,280 | ) | $ | 1,756 | $ | (7,524 | ) | ||||||||||||||
Other comprehensive income before reclassifications | (4,968 | ) | (1,721 | ) | (6,689 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(1.2) million | 2,357 | — | 2,357 | |||||||||||||||||||
Net current period other comprehensive income, net | (2,611 | ) | (1,721 | ) | (4,332 | ) | ||||||||||||||||
Accumulated other comprehensive (loss) income | $ | (11,891 | ) | $ | 35 | $ | (11,856 | ) | ||||||||||||||
Details of reclassifications out of accumulated other comprehensive loss during 2014 are as follows: | ||||||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Amortization of employee benefit plan items: | ||||||||||||||||||||||
Prior service cost (1) | $ | 161 | ||||||||||||||||||||
Settlement expense (1) | 858 | |||||||||||||||||||||
Amortization of actuarial loss (1) | 2,547 | |||||||||||||||||||||
Total before tax | 3,566 | |||||||||||||||||||||
Income tax benefit | (1,209 | ) | ||||||||||||||||||||
Amount reclassified out of accumulated other comprehensive loss | $ | 2,357 | ||||||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of benefit plan costs in Note 7 “Employee Benefit Plans.” | |||||||||||||||||||||
Components of accumulated other comprehensive loss at December 31, 2013 are as follows: | ||||||||||||||||||||||
Pension and postretirement benefits | Foreign currency | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Balance at beginning of period | $ | (15,532 | ) | $ | 1,584 | $ | (13,948 | ) | ||||||||||||||
Other comprehensive income before reclassifications | 5,116 | 172 | 5,288 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(0.6) million | 1,136 | — | 1,136 | |||||||||||||||||||
Net current period other comprehensive income, net | 6,252 | 172 | 6,424 | |||||||||||||||||||
Accumulated other comprehensive (loss) income | $ | (9,280 | ) | $ | 1,756 | $ | (7,524 | ) | ||||||||||||||
Details of reclassifications out of accumulated other comprehensive loss during 2013 are as follows: | ||||||||||||||||||||||
Amount reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Amortization of employee benefit plan items: | ||||||||||||||||||||||
Prior service cost (1) | $ | 161 | ||||||||||||||||||||
Settlement expense (1) | 806 | |||||||||||||||||||||
Amortization of actuarial loss (1) | 786 | |||||||||||||||||||||
Total before tax | 1,753 | |||||||||||||||||||||
Income tax benefit | (617 | ) | ||||||||||||||||||||
Amount reclassified out of accumulated other comprehensive loss | $ | 1,136 | ||||||||||||||||||||
-1 | These accumulated other comprehensive loss components are included in the computation of benefit plan costs in Note 7 “Employee Benefit Plans.” |
Shortterm_Debt_and_Credit_Line1
Short-term Debt and Credit Lines (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Short-term debt | Short-term debt at December 31, 2014 and 2013 consisted of: | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Notes payable to banks | $ | 5,977 | $ | 4,795 | ||||
Commercial paper | 69,950 | 65,250 | ||||||
Total short-term debt | $ | 75,927 | $ | 70,045 | ||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Transactions of the Company's stock option plans | The following table summarizes the transactions of the Company’s stock option plans for the three-year period ended December 31, 2014: | |||||||
Number of shares | Weighted-average | |||||||
exercise price | ||||||||
Options outstanding - December 31, 2011 | 245,090 | $ | 30.3 | |||||
Options granted | 45,100 | $ | 36.15 | |||||
Options exercised | (37,450 | ) | $ | 10.25 | ||||
Options forfeited | (5,160 | ) | $ | 37.19 | ||||
Options outstanding - December 31, 2012 | 247,580 | $ | 34.26 | |||||
Options granted | 23,258 | $ | 51.29 | |||||
Options exercised | (66,660 | ) | $ | 24.91 | ||||
Options forfeited | (1,800 | ) | $ | 37.78 | ||||
Options outstanding - December 31, 2013 | 202,378 | $ | 39.27 | |||||
Options granted | 23,958 | $ | 54.36 | |||||
Options exercised | (23,016 | ) | $ | 32.57 | ||||
Options forfeited | — | n/a | ||||||
Options outstanding - December 31, 2014 | 203,320 | $ | 41.8 | |||||
Price range $18.33 — $36.15 | ||||||||
(weighted-average contractual life of 5.9 years) | 56,320 | $ | 34.2 | |||||
Price range $36.16 — $38.41 | ||||||||
(weighted-average contractual life of 5.8 years) | 54,220 | $ | 37.59 | |||||
Price range $38.42 — $54.36 | ||||||||
(weighted-average contractual life of 6.3 years) | 92,780 | $ | 48.88 | |||||
Options outstanding - December 31, 2014 | 203,320 | |||||||
Exercisable options — | ||||||||
31-Dec-12 | 141,740 | $ | 31.72 | |||||
31-Dec-13 | 113,060 | $ | 38.18 | |||||
31-Dec-14 | 111,016 | $ | 39.68 | |||||
Assumptions used for valuing options | The following assumptions were used for valuing options granted in the years ended December 31: | |||||||
2014 | 2013 | |||||||
Per share fair value of options granted during the period | $22.35 | $20.34 | ||||||
Risk-free interest rate | 1.73 | % | 0.82 | % | ||||
Dividend yield | 1.31 | % | 1.31 | % | ||||
Volatility factor | 49.9 | % | 49.7 | % | ||||
Weighted-average expected life in years | 5.3 | 5.3 | ||||||
Aggregate intrinsic value related to stock options | The following table summarizes the aggregate intrinsic value related to options exercised, outstanding and exercisable as of and for the years ended December 31: | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Exercised | $ | 493 | $ | 1,743 | ||||
Outstanding | $ | 3,568 | $ | 3,083 | ||||
Exercisable | $ | 2,184 | $ | 1,846 | ||||
Transactions of the Company's restricted stock | The fair value of nonvested shares is determined based on the market price of the shares on the grant date. | |||||||
Shares | Fair value | |||||||
per share | ||||||||
Nonvested at December 31, 2011 | 63,300 | $ | 37.69 | |||||
Granted | 30,325 | $ | 36.15 | |||||
Vested | (17,900 | ) | $ | 38.69 | ||||
Forfeited | (1,900 | ) | $ | 21.77 | ||||
Nonvested at December 31, 2012 | 73,825 | $ | 37.01 | |||||
Granted | 21,425 | $ | 51.12 | |||||
Vested | (16,875 | ) | $ | 38.41 | ||||
Forfeited | (3,900 | ) | $ | 37.69 | ||||
Nonvested at December 31, 2013 | 74,475 | $ | 40.54 | |||||
Granted | 21,956 | $ | 54.36 | |||||
Vested | (24,350 | ) | $ | 36.59 | ||||
Forfeited | (3,625 | ) | $ | 41.61 | ||||
Nonvested at December 31, 2014 | 68,456 | $ | 46.32 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Total future minimum lease payments consisted of the following at December 31, 2014: | |||
Total leases | ||||
(In thousands) | ||||
2015 | $ | 2,282 | ||
2016 | 1,861 | |||
2017 | 1,688 | |||
2018 | 1,451 | |||
2019 | 1,274 | |||
Thereafter | 5,845 | |||
Total lease obligations | $ | 14,401 | ||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Amounts included in accumulated other comprehensive loss, net of tax, that have not yet been recognized in net periodic benefit cost are as follows | Amounts included in accumulated other comprehensive loss, net of tax, at December 31, 2014 that have not yet been recognized in net periodic benefit cost are as follows: | |||||||||||||||
Pension | Other | |||||||||||||||
plans | postretirement | |||||||||||||||
benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Prior service cost | $ | — | $ | 6 | ||||||||||||
Net actuarial loss | $ | 11,156 | $ | 314 | ||||||||||||
Amounts included in accumulated other comprehensive loss, net of tax, expected to be recognized in net periodic benefit cost during the following fiscal year | Amounts included in accumulated other comprehensive loss, net of tax, at December 31, 2014 expected to be recognized in net periodic benefit cost during the fiscal year ending December 31, 2015 are as follows: | |||||||||||||||
Pension | Other | |||||||||||||||
plans | postretirement | |||||||||||||||
benefits | ||||||||||||||||
(In thousands) | ||||||||||||||||
Prior service credit | $ | — | $ | 33 | ||||||||||||
Net actuarial loss | $ | 471 | $ | — | ||||||||||||
Components of net periodic benefit cost | The following table sets forth the components of net periodic postretirement benefit cost for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Service cost, benefits attributed for service of active employees for the period | $ | 130 | $ | 154 | $ | 143 | ||||||||||
Interest cost on the accumulated postretirement benefit obligation | 269 | 255 | 295 | |||||||||||||
Amortization of prior service cost | 161 | 161 | 161 | |||||||||||||
Net periodic postretirement benefit cost | $ | 560 | $ | 570 | $ | 599 | ||||||||||
The following table sets forth the components of net periodic pension cost for the years ended December 31, 2014, 2013 and 2012 based on a December 31 measurement date: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Service cost — benefits earned during the year | $ | 4 | $ | 5 | $ | 6 | ||||||||||
Interest cost on projected benefit obligations | 1,888 | 1,842 | 2,205 | |||||||||||||
Expected return on plan assets | (2,806 | ) | (2,744 | ) | (3,190 | ) | ||||||||||
Amortization of net loss | 606 | 719 | 645 | |||||||||||||
Settlement expense | 858 | 806 | 1,075 | |||||||||||||
Net periodic pension cost | $ | 550 | $ | 628 | $ | 741 | ||||||||||
Actuarial assumptions used in the determination of the net period pension cost | Actuarial assumptions used in the determination of the net periodic pension cost are: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.47 | % | 3.68 | % | 4.69 | % | ||||||||||
Expected long-term return on plan assets | 6.5 | % | 6.5 | % | 7 | % | ||||||||||
Rate of compensation increase | n/a | n/a | n/a | |||||||||||||
The actuarial assumption used in the determination of the benefit obligation of the above data is: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Discount rate | 3.81 | % | 4.47 | % | ||||||||||||
Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status | The following table provides a reconciliation of benefit obligations, plan assets and funded status based on a December 31 measurement date: | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of plan year | $ | 45,561 | $ | 50,700 | ||||||||||||
Service cost | 4 | 5 | ||||||||||||||
Interest cost | 1,888 | 1,842 | ||||||||||||||
Actuarial (gain)/loss | 4,989 | (3,208 | ) | |||||||||||||
Benefits paid | (4,242 | ) | (3,778 | ) | ||||||||||||
Projected benefit obligation at measurement date | $ | 48,200 | $ | 45,561 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of plan year | $ | 49,873 | $ | 46,547 | ||||||||||||
Actual return on plan assets | 3,025 | 7,104 | ||||||||||||||
Benefits paid | (4,242 | ) | (3,778 | ) | ||||||||||||
Fair value of plan assets at measurement date | $ | 48,656 | $ | 49,873 | ||||||||||||
Funded status of the plan: | ||||||||||||||||
Benefit plan assets of benefit obligation | 456 | 4,312 | ||||||||||||||
Prepaid pension asset (accrued pension liability) | $ | 456 | $ | 4,312 | ||||||||||||
Fair value of the Company's qualified pension plan assets by category | The fair value of the Company's qualified pension plan assets by category at December 31, 2014 are as follows: | |||||||||||||||
Market | Quoted | Significant | Significant | |||||||||||||
value | prices in active | observable | unobservable | |||||||||||||
markets for | inputs | inputs | ||||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities (a) | $ | 6,356 | $ | — | $ | 6,356 | $ | — | ||||||||
Fixed income funds (b) | 41,351 | — | 41,351 | — | ||||||||||||
Cash/cash equivalents (c) | 949 | 949 | — | — | ||||||||||||
Total | $ | 48,656 | $ | 949 | $ | 47,707 | $ | — | ||||||||
(a) | The Equity funds in aggregate are well diversified by market capitalization, investment style and geography. The funds seek to provide investment results approximating the aggregate price and dividend performance of securities included in the S&P 500 Index, Russell 2000 Index and MSCI All Country World ex-US Index. | |||||||||||||||
(b) | The Fixed Income funds consist of bonds. In aggregate, the funds seek to provide investment return approximating the return of the Plan’s obligations. The funds consist of Long Credit bonds, Intermediate Credit bonds, Short Duration Government Credit bonds and Bank Loans. | |||||||||||||||
(c) | This category comprises the cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||
The fair value of the Company’s qualified pension plan assets by category at December 31, 2013 are as follows: | ||||||||||||||||
Market | Quoted | Significant | Significant | |||||||||||||
value | prices in active | observable | unobservable | |||||||||||||
markets for | inputs | inputs | ||||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities (a) | $ | 27,049 | $ | 27,049 | $ | — | $ | — | ||||||||
Fixed income funds (b) | 18,990 | 18,990 | — | — | ||||||||||||
Cash/cash equivalents (c) | 3,834 | 3,834 | — | — | ||||||||||||
Total | $ | 49,873 | $ | 49,873 | $ | — | $ | — | ||||||||
(a) | This category includes investments in equity securities of large, small and medium sized companies, equity securities of foreign companies and equity funds, or 52.8%, 11.1%, 12.1%, 17.2% and 6.8% of total assets, respectively. Of the total equity amount, 11.1% was invested in common stocks in a wide variety of industries and 88.9% was invested in mutual funds. The funds are valued using the closing market prices at December 31, 2013. | |||||||||||||||
(b) | This category includes investments in investment-grade fixed-income instruments and corporate bonds. Government instruments were 33.4% of the total. The funds are valued using the closing market prices at December 31, 2013. | |||||||||||||||
(c) | This category comprises the cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||
Schedule of Changes in Projected Benefit Obligations | The following table provides a reconciliation of the projected benefit obligation at the Company's December 31 measurement date: | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Benefit obligation at beginning of year | $ | 6,376 | $ | 6,940 | ||||||||||||
Service cost | 130 | 154 | ||||||||||||||
Interest cost | 269 | 255 | ||||||||||||||
Actuarial loss (gain) | 462 | (746 | ) | |||||||||||||
Plan participants' contributions | 708 | 716 | ||||||||||||||
Benefits paid | (1,178 | ) | (943 | ) | ||||||||||||
Benefit obligation and funded status at end of year | $ | 6,767 | $ | 6,376 | ||||||||||||
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the Consolidated Balance Sheets at December 31 are: | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Accrued compensation and employee benefits | $ | 425 | $ | 442 | ||||||||||||
Accrued non-pension postretirement benefits | 6,342 | 5,934 | ||||||||||||||
Amounts recognized at December 31 | $ | 6,767 | $ | 6,376 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Domestic | $ | 41,022 | $ | 34,687 | $ | 40,650 | ||||||
Foreign | 3,890 | 3,322 | 2,821 | |||||||||
Total | $ | 44,912 | $ | 38,009 | $ | 43,471 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 14,362 | $ | 12,630 | $ | 13,908 | ||||||
State | 1,086 | 2,394 | 1,455 | |||||||||
Foreign | 1,120 | 802 | 507 | |||||||||
Deferred: | ||||||||||||
Federal | (1,323 | ) | (2,174 | ) | (663 | ) | ||||||
State | 208 | (228 | ) | (165 | ) | |||||||
Foreign | (219 | ) | (32 | ) | 397 | |||||||
Total | $ | 15,234 | $ | 13,392 | $ | 15,439 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Provision at statutory rate | $ | 15,720 | $ | 13,303 | $ | 15,215 | ||||||
State income taxes, net of federal tax benefit | 841 | 1,408 | 1,018 | |||||||||
Foreign income taxes | (454 | ) | (393 | ) | (87 | ) | ||||||
Domestic production activities deduction | (675 | ) | (498 | ) | (529 | ) | ||||||
Tax audit settlements | — | — | (101 | ) | ||||||||
Other | (198 | ) | (428 | ) | (77 | ) | ||||||
Actual provision | $ | 15,234 | $ | 13,392 | $ | 15,439 | ||||||
Schedule of Deferred Tax Assets and Liabilities | The components of deferred income taxes as of December 31 are as follows: | |||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Reserve for receivables and inventories | $ | 2,769 | $ | 2,850 | ||||||||
Accrued compensation | 1,105 | 1,087 | ||||||||||
Payables | 694 | 364 | ||||||||||
Non-pension postretirement benefits | 2,601 | 2,447 | ||||||||||
Net operating loss and credit carryforwards | 1,668 | 2,645 | ||||||||||
Accrued pension benefits | 1,122 | — | ||||||||||
Accrued employee benefits | 2,405 | 1,681 | ||||||||||
Other | 858 | 793 | ||||||||||
Total deferred tax assets | 13,222 | 11,867 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | 4,570 | 4,408 | ||||||||||
Amortization | 10,881 | 12,165 | ||||||||||
Prepaid pension benefits | — | 236 | ||||||||||
Other | — | 14 | ||||||||||
Total deferred tax liabilities | 15,451 | 16,823 | ||||||||||
Net deferred tax liabilities | $ | (2,229 | ) | $ | (4,956 | ) | ||||||
Schedule of Unrecognized Tax Benefits Roll Forward | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Balance at beginning of year | $ | 880 | $ | 698 | ||||||||
Increases in unrecognized tax benefits as a result of positions taken during the prior period | 11 | 80 | ||||||||||
Increases in unrecognized tax benefits as a result of positions taken during the current period | 185 | 216 | ||||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (230 | ) | (114 | ) | ||||||||
Balance at end of year | $ | 846 | $ | 880 | ||||||||
Industry_Segment_and_Geographi1
Industry Segment and Geographic Areas (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Information regarding revenues by geographic area is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
United States | $ | 309,651 | $ | 290,019 | $ | 271,045 | ||||||
Foreign: | ||||||||||||
Asia | 10,647 | 8,085 | 10,075 | |||||||||
Canada | 12,092 | 8,514 | 8,752 | |||||||||
Europe | 19,448 | 15,677 | 16,001 | |||||||||
Mexico | 3,941 | 4,226 | 6,636 | |||||||||
Middle East | 6,221 | 1,604 | 2,232 | |||||||||
Other | 2,768 | 5,997 | 4,919 | |||||||||
Total | $ | 364,768 | $ | 334,122 | $ | 319,660 | ||||||
Information regarding assets by geographic area is as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Long-lived assets (all non-current assets): | ||||||||||||
United States | $ | 162,368 | $ | 150,997 | ||||||||
Foreign: | ||||||||||||
Europe | 16,273 | 17,409 | ||||||||||
Mexico | 21,412 | 20,489 | ||||||||||
Total | $ | 200,053 | $ | 188,895 | ||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Total assets: | ||||||||||||
United States | $ | 278,094 | $ | 255,881 | ||||||||
Foreign: | ||||||||||||
Europe | 38,453 | 36,838 | ||||||||||
Mexico | 24,611 | 23,339 | ||||||||||
Total | $ | 341,158 | $ | 316,058 | ||||||||
Unaudited_Quarterly_Results_of1
Unaudited: Quarterly Results of Operations, Common Stock Price and Dividends (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||
Quarter ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In thousands except per share data) | ||||||||||||||||
2014 | ||||||||||||||||
Net sales | $ | 83,496 | $ | 95,662 | $ | 96,271 | $ | 89,339 | ||||||||
Gross margin | $ | 28,951 | $ | 34,831 | $ | 36,465 | $ | 30,895 | ||||||||
Net earnings | $ | 4,632 | $ | 8,814 | $ | 10,231 | $ | 6,001 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.33 | $ | 0.62 | $ | 0.71 | $ | 0.42 | ||||||||
Diluted | $ | 0.32 | $ | 0.61 | $ | 0.71 | $ | 0.42 | ||||||||
Dividends declared | $ | 0.18 | $ | 0.18 | $ | 0.19 | $ | 0.19 | ||||||||
Stock price: | ||||||||||||||||
High | $ | 56.03 | $ | 56.96 | $ | 54.33 | $ | 60.91 | ||||||||
Low | $ | 47.9 | $ | 46.47 | $ | 47.32 | $ | 47.46 | ||||||||
Quarter-end close | $ | 55.1 | $ | 52.65 | $ | 50.45 | $ | 59.35 | ||||||||
2013 | ||||||||||||||||
Net sales | $ | 71,808 | $ | 88,341 | $ | 92,963 | $ | 81,010 | ||||||||
Gross margin | $ | 25,037 | $ | 29,846 | $ | 33,103 | $ | 29,003 | ||||||||
Net earnings | $ | 2,907 | $ | 6,281 | $ | 9,049 | $ | 6,380 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.44 | $ | 0.63 | $ | 0.44 | ||||||||
Diluted | $ | 0.2 | $ | 0.44 | $ | 0.63 | $ | 0.44 | ||||||||
Dividends declared | $ | 0.17 | $ | 0.17 | $ | 0.18 | $ | 0.18 | ||||||||
Stock price: | ||||||||||||||||
High | $ | 54.2 | $ | 54.28 | $ | 49.96 | $ | 56.36 | ||||||||
Low | $ | 46.82 | $ | 41.88 | $ | 43.96 | $ | 44.8 | ||||||||
Quarter-end close | $ | 53.52 | $ | 44.55 | $ | 46.5 | $ | 54.5 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Profile) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
product_line | |
Accounting Policies [Abstract] | |
Number of product lines (in product lines) | 3 |
Percentage of products used in water applications (as a percent) | 75.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Receivables) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable | |||
Balance at beginning of year | $531 | $488 | $298 |
Provision and reserve adjustments | -305 | -78 | -138 |
Write-offs less recoveries | -25 | -35 | -30 |
Reserve acquired | 0 | 0 | 82 |
Balance at end of year | 811 | 531 | 488 |
Racine Federated Inc | |||
Allowance for Doubtful Accounts Receivable | |||
Reserve acquired | $82 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Inventories) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Obsolete Inventory Reserve | |||
Balance at beginning of year | $4,236 | $2,880 | $2,680 |
Net additions charged to earnings | 974 | 2,322 | 1,082 |
Disposals | -1,896 | -966 | -882 |
Balance at end of year | $3,314 | $4,236 | $2,880 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Land Improvements | |
Property, Plant and Equipment | |
Estimated useful lives of assets (in years) | 15 years |
Building and Improvements | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives of assets (in years) | 10 years |
Building and Improvements | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives of assets (in years) | 39 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives of assets (in years) | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives of assets (in years) | 20 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Capitalized Software and Hardware) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment | |||
Amortization expense | $1.40 | $1.10 | $0.80 |
Prepaid Expenses and Other Current Assets | |||
Property, Plant and Equipment | |||
Capitalized software and hardware | 1.2 | 0.8 | |
Other Assets | |||
Property, Plant and Equipment | |||
Capitalized software and hardware | $4.90 | $2.80 | |
Minimum | |||
Property, Plant and Equipment | |||
Amortization period (in years) | 1 year | ||
Maximum | |||
Property, Plant and Equipment | |||
Amortization period (in years) | 5 years |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Intangible Assets - Useful Life) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets | |||
Amortization expense recognized | $5.50 | $5 | $4.50 |
Amortization expense expected to be incurred, 2015 | 5.8 | ||
Amortization expense expected to be incurred, 2016 | 5.8 | ||
Amortization expense expected to be incurred, 2017 | 5.8 | ||
Amortization expense expected to be incurred, 2018 | 5.7 | ||
Amortization expense expected to be incurred, 2019 | 5.7 | ||
Amortization expense expected to be incurred, after year five | $32.90 | ||
Minimum | |||
Finite-Lived Intangible Assets | |||
Estimated useful lives (in years) | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets | |||
Estimated useful lives (in years) | 20 years |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies (Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | $83,277 | $73,467 |
Accumulated amortization | 21,605 | 16,150 |
Technologies | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 47,157 | 47,157 |
Accumulated amortization | 13,244 | 10,384 |
Non-compete agreements | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 2,022 | 1,932 |
Accumulated amortization | 1,243 | 1,048 |
Licenses | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 650 | 650 |
Accumulated amortization | 424 | 407 |
Customer lists | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 3,423 | 3,423 |
Accumulated amortization | 1,053 | 679 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 20,700 | 11,690 |
Accumulated amortization | 3,575 | 2,218 |
Trade names | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 9,325 | 8,615 |
Accumulated amortization | $2,066 | $1,414 |
Recovered_Sheet1
Summary of Significant Accounting Policies (Goodwill) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounting Policies [Abstract] | |||
Goodwill | $47,722 | $44,695 | $35,900 |
Recovered_Sheet2
Summary of Significant Accounting Policies (Warranty and After-Sale Costs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Warranty and After-Sale Costs | |||
Balance at beginning of year | $882 | $881 | $1,593 |
Net additions charged to earnings | 2,512 | 1,005 | 719 |
Costs incurred and adjustments | -1,655 | -1,068 | -1,431 |
Reserve acquired | 0 | 64 | 0 |
Balance at end of year | 1,739 | 882 | 881 |
Aquacue | |||
Warranty and After-Sale Cost | |||
Reserve acquired | $64 |
Recovered_Sheet3
Summary of Significant Accounting Policies (Research and Development) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Research and development costs | $9.50 | $10.50 | $9.60 |
Recovered_Sheet4
Summary of Significant Accounting Policies (Stock-Based Compensation Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total stock compensation expense | $1.40 | $1.40 | $1.30 |
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares reserved for future issuance | 700,000 |
Recovered_Sheet5
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Schedule of AOCI) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Increase (Decrease) in Accumulated Other Comprehensive Income [Rollforward] | ||
Balance at beginning of period | ($7,524) | ($13,948) |
Other comprehensive income before reclassifications | -6,689 | 5,288 |
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(1.2) million | 2,357 | 1,136 |
Net current period other comprehensive income, net | -4,332 | 6,424 |
Accumulated other comprehensive (loss) income | -11,856 | -7,524 |
Income tax benefit | -1,209 | -617 |
Pension and postretirement benefits | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Rollforward] | ||
Balance at beginning of period | -9,280 | -15,532 |
Other comprehensive income before reclassifications | -4,968 | 5,116 |
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(1.2) million | 2,357 | 1,136 |
Net current period other comprehensive income, net | -2,611 | 6,252 |
Accumulated other comprehensive (loss) income | -11,891 | -9,280 |
Income tax benefit | -1,209 | -617 |
Foreign currency | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Rollforward] | ||
Balance at beginning of period | 1,756 | 1,584 |
Other comprehensive income before reclassifications | -1,721 | 172 |
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(1.2) million | 0 | 0 |
Net current period other comprehensive income, net | -1,721 | 172 |
Accumulated other comprehensive (loss) income | 35 | 1,756 |
Income tax benefit | $0 | $0 |
Recovered_Sheet6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details of Reclassification) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amount reclassified from accumulated other comprehensive loss | ||
Prior service cost | $161 | $161 |
Settlement expense | 858 | 806 |
Amortization of actuarial loss | 2,547 | 786 |
Total before tax | 3,566 | 1,753 |
Income tax benefit | -1,209 | -617 |
Amount reclassified out of accumulated other comprehensive loss | $2,357 | $1,136 |
Common_Stock_Details
Common Stock (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 15, 2008 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Antidilutive stock options excluded from computation of earnings per share (in shares) | 47,067 | 23,258 | 60,400 | |
Employee benefit stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common share purchase right dividend (in shares) | 1 | |||
Number of common shares each right is entitled to (in shares) | 1 | |||
Common share purchase right exercise price (in dollars per share) | $200 |
Acquisitions_Acquisitions_Nati
Acquisitions Acquisitions - National Meter (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Oct. 01, 2014 | Dec. 31, 2014 | Apr. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition | |||||
Goodwill | $47,722,000 | $44,695,000 | $35,900,000 | ||
National Meter and Automation, Inc. | |||||
Business Acquisition | |||||
Percentage acquired | 100.00% | ||||
Incremental revenue | 15,000,000 | ||||
Total purchase consideration | 22,900,000 | ||||
Cash payment | 20,300,000 | ||||
Deferred payments | 2,500,000 | ||||
Receivables | 3,900,000 | ||||
Inventory | 4,500,000 | ||||
Property, plant and equipment | 2,800,000 | ||||
Intangibles | 9,800,000 | ||||
Goodwill | 3,000,000 | ||||
Current liabilities | 100,000 | ||||
Transaction costs | 400,000 | ||||
Aquacue | |||||
Business Acquisition | |||||
Percentage acquired | 100.00% | ||||
Cash payment | 13,800,000 | ||||
Goodwill | 8,800,000 | ||||
Accounts Payable | National Meter and Automation, Inc. | |||||
Business Acquisition | |||||
Deferred payments | 2,000,000 | ||||
Long-term Debt | National Meter and Automation, Inc. | |||||
Business Acquisition | |||||
Deferred payments | $500,000 | ||||
Customer relationships | National Meter and Automation, Inc. | |||||
Business Acquisition | |||||
Estimated average useful life (in years) | 12 years |
Acquisitions_Acquacue_Inc_Deta
Acquisitions - Acquacue. Inc. (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition | ||||
Goodwill | 47,722,000 | $44,695,000 | $35,900,000 | |
Aquacue | ||||
Business Acquisition | ||||
Percentage acquired | 100.00% | |||
Cash payment | 13,800,000 | |||
Deferred acquisition costs | 3,000,000 | |||
Current assets | 100,000 | |||
Deferred tax assets | 1,300,000 | |||
Intangible assets | 3,900,000 | |||
Goodwill | 8,800,000 | |||
Current liabilities | 300,000 | |||
Transaction costs | $100,000 | |||
Technologies | Aquacue | ||||
Business Acquisition | ||||
Estimated average useful life (in years) | 10 years |
Acquisitions_Racine_Details
Acquisitions - Racine (Details) (Racine Federated Inc, USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2012 |
Racine Federated Inc | |||
Business Acquisition | |||
Percentage acquired | 100.00% | 100.00% | |
Purchase price in cash | $57.30 | ||
Final payment included in payables | $4.60 |
Shortterm_Debt_and_Credit_Line2
Short-term Debt and Credit Lines (Total Short-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt | ||
Total short-term debt | $75,927 | $70,045 |
Notes payable to banks | ||
Short-term Debt | ||
Total short-term debt | 5,977 | 4,795 |
Commercial paper | ||
Short-term Debt | ||
Total short-term debt | $69,950 | $65,250 |
Shortterm_Debt_and_Credit_Line3
Short-term Debt and Credit Lines (Revolving Loan Facility and Credit Lines) (Details) | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | 31-May-13 | 31-May-12 | 30-May-12 | Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 |
USD ($) | USD ($) | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Foreign Line of Credit | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Euro-Based Revolving Loan Facility | Euro-Based Revolving Loan Facility | Euro-Based Revolving Loan Facility | Euro-Based Revolving Loan Facility | Line of Credit | |||||
USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | ||||||||||
Line of Credit Facility | ||||||||||||||
Revolving loan facility | $4,500,000 | $4,800,000 | ||||||||||||
Maximum borrowing capacity | 105,000,000 | 125,000,000 | 90,000,000 | 4,800,000 | 4,000,000 | 5,500,000 | 4,000,000 | 37,500,000 | ||||||
Interest rate (as a percent) | 1.25% | 1.25% | 1.51% | 1.51% | 1.72% | 1.72% | ||||||||
Line of credit period (in years) | 3 years | |||||||||||||
Expected decrease in line of credit facility | 16,700,000 | |||||||||||||
Maximum amount issuable | 70,000,000 | 5,000,000 | ||||||||||||
Current borrowing capacity | $33,600,000 |
Stock_Compensation_Shares_Auth
Stock Compensation (Shares Authorized and Option Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share available for grant | 456,000 | 505,000 | |
Total stock compensation expense | $1.40 | $1.40 | $1.30 |
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares reserved for future issuance | 700,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total stock compensation expense | $0.40 | $0.50 | $0.40 |
Stock_Compensation_Transaction
Stock Compensation (Transactions of Stock Option Plan) (Details) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-average exercise price (in dollars per share) | |||
Options granted | $22.35 | $20.34 | |
Omnibus Incentive Plan | |||
Number of shares (in shares) | |||
Beginning balance | 202,378 | 247,580 | 245,090 |
Options granted | 23,958 | 23,258 | 45,100 |
Options exercised | -23,016 | -66,660 | -37,450 |
Options forfeited | 0 | -1,800 | -5,160 |
Ending balance | 203,320 | 202,378 | 247,580 |
Weighted-average exercise price (in dollars per share) | |||
Beginning balance | $39.27 | $34.26 | $30.30 |
Options granted | $54.36 | $51.29 | $36.15 |
Options exercised | $32.57 | $24.91 | $10.25 |
Options forfeited | $37.78 | $37.19 | |
Ending balance | $41.80 | $39.27 | $34.26 |
Exercisable options (in shares) | 111,016 | 113,060 | 141,740 |
Exercisable options weighted average exercise price (in dollars per share) | $39.68 | $38.18 | $31.72 |
Omnibus Incentive Plan | Price range $18.33 — $36.15 | |||
Number of shares (in shares) | |||
Ending balance | 56,320 | ||
Weighted-average exercise price (in dollars per share) | |||
Ending balance | $34.20 | ||
Weighted average contractual life (in years) | 5 years 10 months 24 days | ||
Exercise price range - minimum (in dollars per share) | $18.33 | ||
Exercise price range - maximum (in dollars per share) | $36.15 | ||
Omnibus Incentive Plan | Price range $36.16 — $38.41 | |||
Number of shares (in shares) | |||
Ending balance | 54,220 | ||
Weighted-average exercise price (in dollars per share) | |||
Ending balance | $37.59 | ||
Weighted average contractual life (in years) | 5 years 9 months 18 days | ||
Exercise price range - minimum (in dollars per share) | $36.16 | ||
Exercise price range - maximum (in dollars per share) | $38.41 | ||
Omnibus Incentive Plan | Price range $38.42 — $54.36 | |||
Number of shares (in shares) | |||
Ending balance | 92,780 | ||
Weighted-average exercise price (in dollars per share) | |||
Ending balance | $48.88 | ||
Weighted average contractual life (in years) | 6 years 3 months 18 days | ||
Exercise price range - minimum (in dollars per share) | $38.42 | ||
Exercise price range - maximum (in dollars per share) | $54.36 |
Stock_Compensation_Assumptions
Stock Compensation (Assumptions used for Valuing Options) (Details) (Stock Options, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Per share fair value of options granted during the period (in dollars per share) | $22.35 | $20.34 |
Risk-free interest rate (as a percentage) | 1.73% | 0.82% |
Dividend yield (as a percentage) | 1.31% | 1.31% |
Volatility factor (as a percentage) | 49.90% | 49.70% |
Weighted-average expected life in years | 5 years 3 months 18 days | 5 years 3 months 18 days |
Stock_Compensation_Aggregate_I
Stock Compensation (Aggregate Intrinsic Value) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized compensation cost | $1,000,000 | |
Unrecognized compensation cost period (in years) | 2 years 7 months 18 days | |
Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Exercised | 493,000 | 1,743,000 |
Outstanding | 3,568,000 | 3,083,000 |
Exercisable | $2,184,000 | $1,846,000 |
Stock_Compensation_Nonvested_S
Stock Compensation (Nonvested Stock) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total stock compensation expense | $1,400,000 | $1,400,000 | $1,300,000 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized compensation cost period (in months) | 1 year 3 months 18 days | ||
Unrecognized compensation cost | 1,300,000 | ||
Vesting period (in years) | 3 years | ||
Restricted stock expense | 1,000,000 | 900,000 | 900,000 |
Omnibus Incentive Plan | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Annual share award | 50,000 | ||
Total stock compensation expense | 400,000 | 400,000 | 400,000 |
Unrecognized compensation cost period (in months) | 4 months | ||
Unrecognized compensation cost | $100,000 |
Stock_Compensation_Nonvested_S1
Stock Compensation (Nonvested Stock Roll Forward) (Details) (Restricted Stock, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock | |||
Shares | |||
Beginning Balance | 74,475 | 73,825 | 63,300 |
Granted | 21,956 | 21,425 | 30,325 |
Vested | -24,350 | -16,875 | -17,900 |
Forfeited | -3,625 | -3,900 | -1,900 |
Ending Balance | 68,456 | 74,475 | 73,825 |
Fair value per share (in dollars per share) | |||
Beginning balance | $40.54 | $37.01 | $37.69 |
Granted | $54.36 | $51.12 | $36.15 |
Vested | $36.59 | $38.41 | $38.69 |
Forfeited | $41.61 | $37.69 | $21.77 |
Ending balance | $46.32 | $40.54 | $37.01 |
Unrecognized compensation cost | $1.30 | ||
Unrecognized compensation cost period (in years) | 1 year 3 months 18 days |
Commitments_and_Contingencies_1
Commitments and Contingencies (Commitments) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2015 | $2,282,000 | ||
2016 | 1,861,000 | ||
2017 | 1,688,000 | ||
2018 | 1,451,000 | ||
2019 | 1,274,000 | ||
Thereafter | 5,845,000 | ||
Total lease obligations | 14,401,000 | ||
Total rental expense | $3,100,000 | $2,800,000 | $2,700,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
potentially_responsible_party | |
Landfill Lawsuit | |
Loss Contingencies | |
Number of potentially responsible parties | 1 |
Landfill | |
Loss Contingencies | |
Loss Contingency, Pending Claims, Number | 2 |
Employee_Benefit_Plans_Amounts
Employee Benefit Plans (Amounts Included in Other Comprehensive Loss not Recognized in Net Periodic Benefit Cost) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Prior service cost | $0 |
Net actuarial loss | 11,156 |
Other postretirement benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Prior service cost | 6 |
Net actuarial loss | $314 |
Employee_Benefit_Plans_Amounts1
Employee Benefit Plans (Amounts included in accumulated other comprehensive loss, net of tax, expected to be recognized in net periodic benefit cost during the next fiscal year) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Pension plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Prior service credit | $0 |
Net actuarial loss | 471 |
Other postretirement benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Prior service credit | 33 |
Net actuarial loss | $0 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans (Components of Net Periodic Pension Cost) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension plans | |||
Components of net periodic benefit cost | |||
Service cost — benefits earned during the year | $4 | $5 | $6 |
Interest cost on projected benefit obligations | 1,888 | 1,842 | 2,205 |
Expected return on plan assets | -2,806 | -2,744 | -3,190 |
Amortization of net loss | 606 | 719 | 645 |
Settlement expense | 858 | 806 | 1,075 |
Net periodic pension cost | 550 | 628 | 741 |
Other postretirement benefits | |||
Components of net periodic benefit cost | |||
Service cost — benefits earned during the year | 130 | 154 | 143 |
Interest cost on projected benefit obligations | 269 | 255 | 295 |
Net periodic pension cost | $560 | $570 | $599 |
Employee_Benefit_Plans_Actuari
Employee Benefit Plans (Actuarial Assumptions Used in the Determination of the Net Periodic Pension Cost) (Details) (Pension plans) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Discount rate (as a percentage) | 4.47% | 3.68% | 4.69% |
Expected long-term return on plan assets (as a percentage) | 6.50% | 6.50% | 7.00% |
Employee_Benefit_Plans_Reconci
Employee Benefit Plans (Reconciliation of Benefit Obligations, Plan Assets and Funded Status) (Details) (Pension plans, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $45,561 | $50,700 | |
Service cost — benefits earned during the year | 4 | 5 | 6 |
Interest cost on projected benefit obligations | 1,888 | 1,842 | 2,205 |
Actuarial (gain)/loss | 4,989 | -3,208 | |
Benefits paid | -4,242 | -3,778 | |
Benefit obligation and funded status at end of year | 48,200 | 45,561 | 50,700 |
Change in plan assets: | |||
Fair value of plan assets at beginning of plan year | 49,873 | 46,547 | |
Actual return on plan assets | 3,025 | 7,104 | |
Benefits paid | -4,242 | -3,778 | |
Fair value of plan assets at measurement date | 48,656 | 49,873 | 46,547 |
Benefit plan assets of benefit obligation | 456 | 4,312 | |
Defined Benefit Plan, Assets for Plan Benefits | $456 | $4,312 |
Employee_Benefit_Plans_Actuari1
Employee Benefit Plans (Actuarial Assumptions Used in the Determination of the Benefit Obligation) (Details) (Pension plans) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Discount rate (as a percentage) | 3.81% | 4.47% |
Employee_Benefit_Plans_Qualifi
Employee Benefit Plans (Qualified Pension Plan Assets Narrative) (Details) (Pension plans, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | $48,656,000 | $49,873,000 | $46,547,000 |
Estimated future benefit payments 2015 | 4,500,000 | ||
Estimated future benefit payments 2016 | 4,300,000 | ||
Estimated future benefit payments 2017 | 4,100,000 | ||
Estimated future benefit payments 2018 | 3,700,000 | ||
Estimated future benefit payments 2019 | 3,400,000 | ||
Estimated future benefit payments, Five fiscal years after 2019 | 16,400,000 | ||
Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 6,356,000 | 27,049,000 | |
Target allocations for plan assets, minimum (as a percentage) | 0.00% | ||
Target allocations for plan assets, maximum (as a percentage) | 18.00% | ||
Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 41,351,000 | 18,990,000 | |
Target allocations for plan assets, minimum (as a percentage) | 0.00% | ||
Target allocations for plan assets, maximum (as a percentage) | 14.00% | ||
Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | $949,000 | $3,834,000 | |
Target allocations for plan assets, minimum (as a percentage) | 68.00% | ||
Target allocations for plan assets, maximum (as a percentage) | 100.00% |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans (Fair Value of the Company’s Qualified Pension Plan Assets by Category) (Details) (Pension plans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | $48,656,000 | $49,873,000 | $46,547,000 |
Accumulated benefit obligation | 48,200,000 | 45,600,000 | |
Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 6,356,000 | 27,049,000 | |
Actual plan asset allocations (as a percentage) | 11.10% | ||
Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 41,351,000 | 18,990,000 | |
Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 949,000 | 3,834,000 | |
Equity Securities, Large Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 52.80% | ||
Equity Securities, Small Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 11.10% | ||
Equity Securities, Medium Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 12.10% | ||
Equity Securities, Foreign Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 17.20% | ||
Equity Securities, Other Companies | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 6.80% | ||
Equity Securities, Mutual Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 88.90% | ||
Exchange Traded Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Actual plan asset allocations (as a percentage) | 33.40% | ||
Quoted prices in active markets for identical assets (Level 1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 949,000 | 49,873,000 | |
Quoted prices in active markets for identical assets (Level 1) | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 0 | 27,049,000 | |
Quoted prices in active markets for identical assets (Level 1) | Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 0 | 18,990,000 | |
Quoted prices in active markets for identical assets (Level 1) | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 949,000 | 3,834,000 | |
Significant observable inputs (Level 2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 47,707,000 | 0 | |
Significant observable inputs (Level 2) | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 6,356,000 | 0 | |
Significant observable inputs (Level 2) | Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 41,351,000 | 0 | |
Significant observable inputs (Level 2) | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) | Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Fair value of qualified plan assets | $0 | $0 |
Employee_Benefit_Plans_Supplem
Employee Benefit Plans (Supplemental Non-qualified Unfunded Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other postretirement benefits | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits | |||
Estimated future benefit payments 2017 | $0.50 | ||
Other postretirement benefits | Officers and Key Employees | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits | |||
Compensation expense | 0.3 | 0.2 | 0.3 |
Amount accrued | $1.60 | $1.50 |
Employee_Benefit_Plans_Compone1
Employee Benefit Plans (Components of Net Periodic Postretirement Benefit Cost) (Details) (Other postretirement benefits, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other postretirement benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Service cost — benefits earned during the year | $130 | $154 | $143 |
Interest cost on projected benefit obligations | 269 | 255 | 295 |
Amortization of prior service cost | 161 | 161 | 161 |
Net periodic pension cost | $560 | $570 | $599 |
Employee_Benefit_Plans_Actuari2
Employee Benefit Plans (Actuarial Assumptions Used in the Determination of the Net Periodic Postretirement Benefit Cost) (Details) (Other postretirement benefits) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other postretirement benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Discount rate (as a percentage) | 4.73% | 3.92% | 4.79% |
Employee_Benefit_Plans_Reconci1
Employee Benefit Plans (Reconciliation of the Projected Benefit Obligation) (Details) (Other postretirement benefits, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other postretirement benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $6,376 | $6,940 | |
Service cost — benefits earned during the year | 130 | 154 | 143 |
Interest cost | -269 | -255 | -295 |
Actuarial loss (gain) | 462 | -746 | |
Plan participants' contributions | 708 | 716 | |
Benefits paid | -1,178 | -943 | |
Benefit obligation and funded status at end of year | $6,767 | $6,376 | $6,940 |
Employee_Benefit_Plans_Amounts2
Employee Benefit Plans (Amounts Recognized in the Consolidated Balance Sheet) (Details) (Other postretirement benefits, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $6,767 | $6,376 |
Accrued compensation and employee benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 425 | 442 |
Accrued non-pension postretirement benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $6,342 | $5,934 |
Employee_Benefit_Plans_Actuari3
Employee Benefit Plans (Actuarial Assumptions Used for Accumulated Postretirement Benefit Obligation and Estimated Future Benefit Payments) (Details) (Other postretirement benefits, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other postretirement benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Discount rate (as a percentage) | 4.01% | 4.73% |
Estimated future benefit payments 2015 | $0.40 | |
Estimated future benefit payments 2016 | 0.4 | |
Estimated future benefit payments 2017 | 0.5 | |
Estimated future benefit payments 2018 | 0.5 | |
Estimated future benefit payments 2019 | 0.5 | |
Estimated future benefit payments, Five fiscal years after 2019 | $2.20 |
Employee_Benefit_Plans_Employe
Employee Benefit Plans (Employee Savings and Stock Ownership Plan - Debt) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Debt Instrument | ||||
Loans payable | $900,000 | $1,500,000 | ||
Principal payments | 154,000 | 154,000 | 256,000 | |
Employee Stock Ownership Plan (ESOP), Plan | Loans Receivable | ||||
Debt Instrument | ||||
Loan to repay third party loan | 500,000 | |||
Additional loan to ESOP | 1,000,000 | |||
Loans payable | $900,000 | $1,500,000 |
Employee_Benefit_Plans_Employe1
Employee Benefit Plans (Employee Savings and Stock Ownership Plan - Shares) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Shares contributed to ESOP (in shares) | 11,077 | 9,918 | 16,151 |
Shares in ESOP (in shares) | 72,362 | 83,439 | 93,357 |
Deferred shares, fair value | $4.30 | $4.50 | $4.40 |
Compensation expense | 0.3 | 0.3 | 0.3 |
Defined Contribution Feature | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Compensation expense | $2.30 |
Employee_Benefit_Plans_Employe2
Employee Benefit Plans (Employe Savings and Stock Ownership Plan - 401k Plan) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Compensation expense | $0.30 | $0.30 | $0.30 |
Defined Contribution Plan, Maximum Annual Contribution Per Employee (as a percentage) | 20.00% | ||
Defined Contribution Plan, Employer Matching Contribution (as a percentage) | 25.00% | ||
Maximum Percentage of Employee's Salary Eligible for Defined Contribution Plan (as a percentage) | 7.00% |
Income_Taxes_Earnings_from_Con
Income Taxes (Earnings from Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $41,022 | $34,687 | $40,650 |
Foreign | 3,890 | 3,322 | 2,821 |
Earnings before income taxes | $44,912 | $38,009 | $43,471 |
Income_Taxes_ProvisionBenevit_
Income Taxes (Provision/Benevit for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $14,362 | $12,630 | $13,908 |
State | 1,086 | 2,394 | 1,455 |
Foreign | 1,120 | 802 | 507 |
Deferred: | |||
Federal | -1,323 | -2,174 | -663 |
State | 208 | -228 | -165 |
Foreign | -219 | -32 | 397 |
Provision for income taxes | $15,234 | $13,392 | $15,439 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Provision at statutory rate | $15,720 | $13,303 | $15,215 |
State income taxes, net of federal tax benefit | 841 | 1,408 | 1,018 |
Foreign income taxes | -454 | -393 | -87 |
Domestic production activities deduction | -675 | -498 | -529 |
Tax audit settlements | 0 | 0 | -101 |
Other | -198 | -428 | -77 |
Provision for income taxes | $15,234 | $13,392 | $15,439 |
Income_Taxes_Components_of_Def
Income Taxes (Components of Deferred Income Taxes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Loss Carryforwards [Line Items] | ||
Reserve for receivables and inventories | $2,769,000 | $2,850,000 |
Accrued compensation | 1,105,000 | 1,087,000 |
Payables | 694,000 | 364,000 |
Non-pension postretirement benefits | 2,601,000 | 2,447,000 |
Net operating loss and credit carryforwards | 1,668,000 | 2,645,000 |
Accrued pension benefits | 1,122,000 | 0 |
Accrued employee benefits | 2,405,000 | 1,681,000 |
Other | 858,000 | 793,000 |
Total deferred tax assets | 13,222,000 | 11,867,000 |
Depreciation | 4,570,000 | 4,408,000 |
Amortization | 10,881,000 | 12,165,000 |
Prepaid pension benefits | 0 | 236,000 |
Other | 0 | 14,000 |
Total deferred tax liabilities | 15,451,000 | 16,823,000 |
Net deferred tax liabilities | -2,229,000 | -4,956,000 |
Federal and state net operating loss and federal and state credit carryforwards | 200,000 | 200,000 |
Undistributed earnings of foreign subsidiary | 20,500,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 4,100,000 | 5,000,000 |
General Business Tax Credit Carryforward | ||
Operating Loss Carryforwards [Line Items] | ||
General business credit carryforwards | 4,100,000 | 5,000,000 |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Federal and state net operating loss and federal and state credit carryforwards | $1,200,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $880,000 | $698,000 |
Increases in unrecognized tax benefits as a result of positions taken during the prior period | 11,000 | 80,000 |
Increases in unrecognized tax benefits as a result of positions taken during the current period | 185,000 | 216,000 |
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | -230,000 | -114,000 |
Balance at end of year | 846,000 | 880,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $100,000 | $100,000 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans Payable | $0.90 | $1.50 |
Employee Stock Ownership Plan (ESOP), Plan | Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loan, restructured outstanding debt of ESSOP | 0.5 | |
Purchase of company shares | 1 | |
Loans Payable | $0.90 | $1.50 |
Industry_Segment_and_Geographi2
Industry Segment and Geographic Areas (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | $89,339 | $96,271 | $95,662 | $83,496 | $81,010 | $92,963 | $88,341 | $71,808 | $364,768 | $334,122 | $319,660 |
Long-lived assets (all non-current assets): | 200,053 | 188,895 | 200,053 | 188,895 | |||||||
Total assets: | 341,158 | 316,058 | 341,158 | 316,058 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | 309,651 | 290,019 | 271,045 | ||||||||
Long-lived assets (all non-current assets): | 162,368 | 150,997 | 162,368 | 150,997 | |||||||
Total assets: | 278,094 | 255,881 | 278,094 | 255,881 | |||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | 10,647 | 8,085 | 10,075 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | 12,092 | 8,514 | 8,752 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | 19,448 | 15,677 | 16,001 | ||||||||
Long-lived assets (all non-current assets): | 16,273 | 17,409 | 16,273 | 17,409 | |||||||
Total assets: | 38,453 | 36,838 | 38,453 | 36,838 | |||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | 3,941 | 4,226 | 6,636 | ||||||||
Long-lived assets (all non-current assets): | 21,412 | 20,489 | 21,412 | 20,489 | |||||||
Total assets: | 24,611 | 23,339 | 24,611 | 23,339 | |||||||
Middle East | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | 6,221 | 1,604 | 2,232 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenues: | $2,768 | $5,997 | $4,919 |
Unaudited_Quarterly_Results_of2
Unaudited: Quarterly Results of Operations, Common Stock Price and Dividends (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
shareholder | shareholder | shareholder | shareholder | |||||||||||
Net sales | $89,339 | $96,271 | $95,662 | $83,496 | $81,010 | $92,963 | $88,341 | $71,808 | $364,768 | $334,122 | $319,660 | |||
Gross margin | 30,895 | 36,465 | 34,831 | 28,951 | 29,003 | 33,103 | 29,846 | 25,037 | 131,142 | 116,989 | 122,246 | |||
Net earnings | $6,001 | $10,231 | $8,814 | $4,632 | $6,380 | $9,049 | $6,281 | $2,907 | $29,678 | $24,617 | $28,032 | |||
Earnings Per Share, Basic (in dollars per share) | $0.42 | $0.71 | $0.62 | $0.33 | $0.44 | $0.63 | $0.44 | $0.21 | ||||||
Earnings Per Share, Diluted (in dollars per share) | $0.42 | $0.71 | $0.61 | $0.32 | $0.44 | $0.63 | $0.44 | $0.20 | ||||||
Dividends declared (in dollars per share) | $0.19 | $0.19 | $0.18 | $0.18 | $0.18 | $0.18 | $0.17 | $0.17 | ||||||
Stock price (in dollars per share) | $54.50 | $54.50 | $46.50 | $44.55 | $53.52 | |||||||||
Number of shareholders | 948 | 969 | 948 | 969 | ||||||||||
Common Stock | ||||||||||||||
Stock price (in dollars per share) | $59.35 | $50.45 | $52.65 | $55.10 | $59.35 | |||||||||
Common Stock | High | ||||||||||||||
Stock price (in dollars per share) | $60.91 | $54.33 | $56.96 | $56.03 | $56.36 | $60.91 | $56.36 | $49.96 | $54.28 | $54.20 | ||||
Common Stock | Low | ||||||||||||||
Stock price (in dollars per share) | $47.46 | $47.32 | $46.47 | $47.90 | $44.80 | $47.46 | $44.80 | $43.96 | $41.88 | $46.82 |