10-Q
false2019Q20001037868--12-3122013,9671,3506,6258737191,7461,438AMETEK INC/228,345,814AMETEK INC/Includes U.S. export sales of $322.1 million and $647.5 million for the three months ended and the six months ended, respectively.Includes U.S. export sales of $320.5 million and $635.6 million for the three months ended and the six months ended, respectively.
Table of Contents
 
 
     
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM
10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
 OF
 THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 THE
 SECURITIES EXCHANGE ACT
OF 1934
For the transition period from
                    
to
                    
Commission File Number
1-12981
 
AMETEK, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
14-1682544
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
     
1100 Cassatt Road
BerwynPennsylvania
 
19312-1177
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code:
(610)
 647-2121
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
Yes
  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  
    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
Large accelerated filer
 
 
Accelerated filer
 
             
Non-accelerated
 filer
 
 
Smaller reporting company
 
             
Emerging growth company
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
 12b-2
of the Exchange Act).    Yes  
    No  
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock
 
AME
 
New York Stock Exchange
The number of shares of the registrant’s common stock outstanding as of the latest practicable date was: Common Stock, $0.01 Par Value, outstanding at July 25, 2019 was 228,345,814​​​​​​​ shares.
 
 
  
 
Table of Contents
 
AMETEK, Inc.
Form 10-Q
Table of Contents
 
 
Page
 
   
 
             
Item 1.
     
 
         
   
2
 
   
3
 
   
4
 
   
5
 
   
6
 
   
7
 
             
Item 2.
     
21
 
Item 4.
     
27
 
         
   
 
             
Item 2.
     
28
 
Item 6.
     
29
 
         
   
30
 
 
 
Table of Contents
 
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
 
 
 
AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
                                 
 
Three Months Ended
   
Six Months Ended
 
 
June 30,
   
June 30,
 
 
2019
   
2018
   
2019
   
2018
 
Net sales
 
$
1,289,412
    $
1,208,935
   
$
2,577,103
    $
2,381,582
 
                                 
Cost of sales
   
838,153
     
791,248
     
1,689,460
     
1,568,048
 
Selling, general and administrative
   
155,849
     
147,601
     
308,974
     
285,280
 
                                 
Total operating expenses
   
994,002
     
938,849
     
1,998,434
     
1,853,328
 
                                 
Operating income
   
295,410
     
270,086
     
578,669
     
528,254
 
                                 
Interest expense
   
(21,475
)
   
(20,784
)    
(44,128
)
   
(42,470
)
Other expense, net
   
(3,336
)
   
(1,081
)    
(7,004
)
   
(1,739
)
                                 
Income before income taxes
   
270,599
     
248,221
     
527,537
     
484,045
 
                                 
Provision for income taxes
   
55,096
     
54,361
     
107,766
     
108,845
 
                                 
Net income
 
$
215,503
    $
193,860
   
$
419,771
    $
375,200
 
                                 
Basic earnings per share
 
$
0.95
    $
0.84
   
$
1.85
    $
1.62
 
                                 
Diluted earnings per share
 
$
0.94
    $
0.83
   
$
1.83
    $
1.61
 
                                 
Weighted average common shares outstanding:
   
     
     
     
 
Basic shares
   
227,577
     
231,252
     
227,219
     
231,090
 
                                 
Diluted shares
   
229,328
     
233,297
     
229,007
     
233,131
 
                                 
Dividends declared and paid per share
 
$
0.14
    $
0.14
   
$
0.28
    $
0.28
 
                                 
 
 
 
See accompanying notes.
 
2
 
 
 
Table of Contents
 
AMETEK, Inc.
Consolidated Statement of Comprehensive Income
(In thousands)
(Unaudited)
 
Three Months Ended
   
Six Months Ended
 
 
June 30,
   
June 30,
 
 
2019
   
2018
   
2019
   
2018
 
Total comprehensive income
 
$
219,752
    $
154,538
   
$
435,033
    $
350,296
 
                                 
See accompanying notes.
 
3
 
 
Table of Contents
 
AMETEK, Inc.
Consolidated Balance Sheet
(In thousands)
                 
 
June 30,
   
December 31,
 
 
2019
   
2018
 
 
(Unaudited)
   
 
ASSETS
   
     
 
Current assets:
   
     
 
Cash and cash equivalents
 
$
567,912
    $
353,975
 
Receivables, net
   
757,522
     
732,839
 
Inventories, net
   
634,138
     
624,744
 
Other current assets
   
167,581
     
124,586
 
                 
Total current assets
   
2,127,153
     
1,836,144
 
                 
Property, plant and equipment, net
   
538,256
     
554,130
 
Right of use assets, net
   
182,902
     
—  
 
Goodwill
   
3,613,182
     
3,612,033
 
Other intangibles, net
   
2,338,511
     
2,403,771
 
Investments and other assets
   
269,598
     
256,210
 
                 
Total assets
 
$
9,069,602
    $
8,662,288
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
   
     
 
Current liabilities:
   
     
 
Short-term borrowings and current portion of long-term debt, net
 
$
98,356
    $
358,876
 
Accounts payable
   
390,443
     
399,571
 
Customer advanced payments
   
140,635
     
137,229
 
Income taxes payable
   
33,029
     
48,597
 
Accrued liabilities and other
   
316,095
     
314,431
 
                 
Total current liabilities
   
978,558
     
1,258,704
 
                 
Long-term debt, net
   
2,368,690
     
2,273,837
 
Deferred income taxes
   
544,218
     
528,336
 
Other long-term liabilities
   
511,355
     
359,489
 
                 
Total liabilities
   
4,402,821
     
4,420,366
 
                 
Stockholders’ equity:
   
     
 
Common stock
   
2,654
     
2,640
 
Capital in excess of par value
   
759,775
     
706,743
 
Retained earnings
   
6,009,968
     
5,653,811
 
Accumulated other comprehensive loss
   
(535,826
)
   
(551,088
)
Treasury stock
   
(1,569,790
)
   
(1,570,184
)
                 
Total stockholders’ equity
   
4,666,781
     
4,241,922
 
                 
Total liabilities and stockholders’ equity
 
$
9,069,602
    $
8,662,288
 
                 
 
 
See accompanying notes.
 
4
 
 
 
Table of Contents
 
AMETEK, Inc.
Consolidated Statement of Stockholders’ Equity
(In thousands)
(Unaudited)
                                 
 
Three months ended
June 30,
 
 
Six months ended
June 30,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Capital stock
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, $0.01 par value
 
$
—  
    $
—  
   
$
—  
    $
—  
 
 
 
 
 
           
 
 
         
Common stock, $0.01 par value
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
2,647
     
2,634
   
 
2,640
     
2,631
 
Shares issued
 
 
7
     
3
   
 
14
     
6
 
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
2,654
     
2,637
   
 
2,654
     
2,637
 
 
 
 
 
           
 
 
         
Capital in excess of par value
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
738,173
     
673,516
   
 
706,743
     
660,894
 
Issuance of common stock under employee stock plans
 
 
13,277
     
(37
)  
 
37,586
     
7,014
 
Share-based compensation costs
 
 
8,325
     
7,384
   
 
15,446
     
12,955
 
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
759,775
     
680.863
   
 
759,775
     
680,863
 
 
 
 
 
           
 
 
         
Retained earnings
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
5,826,313
     
5,153,722
   
 
5,653,811
     
5,002,419
 
Net income
 
 
215,503
     
193,860
   
 
419,771
     
375,200
 
Cash dividends paid
 
 
(31,849
)    
(32,351
)  
 
(63,615
)    
(64,653
)
Other
 
 
1
     
1
   
 
1
     
2,266
 
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
6,009,968
     
5,315,232
   
 
6,009,968
     
5,315,232
 
 
 
 
 
           
 
 
         
Accumulated other comprehensive (loss) income
 
 
     
   
 
     
 
Foreign currency translation:
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
(294,082
)    
(239,620
)  
 
(302,138
)    
(251,909
)
Translation adjustments
 
 
(2,789
)    
(70,213
)  
 
6,175
     
(40,532
)
Change in long-term intercompany notes
 
 
3,396
     
(14,706
)  
 
(1,020
)    
(9,302
)
Net investment hedge instruments gain (loss), net of tax of ($220) and ($13,967)
for the quarter ended June 30, 2019 and 2018 and ($1,350) and ($6,625) for the six months ended June 30, 2019 and 2018, respectively
 
 
685
     
43,364
   
 
4,193
     
20,568
 
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
(292,790
)    
(281,175
)  
 
(292,790
)    
(281,175
)
 
 
 
 
           
 
 
         
Defined benefit pension plans:
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
(245,993
)    
(175,138
)  
 
(248,950
)    
(177,371
)
Amortization of net actuarial loss (gain) and other, net of tax of ($873) and ($719) for the
quarter ended June 30, 2019 and 2018, and ($1,746) and ($1,438) for the six months ended June 30, 2019 and 2018, respectively
 
 
2,957
     
2,233
   
 
5,914
     
4,466
 
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
(243,036
)    
(172,905
)  
 
(243,036
)    
(172,905
)
 
 
 
 
           
 
 
         
Unrealized holding gain (loss) on
available-for-sale
securities:
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
—  
     
—  
   
 
—  
     
104
 
Increase (decrease) during the year, net of tax
 
 
—  
     
—  
   
 
—  
     
(104
)
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
—  
     
—  
   
 
—  
     
—  
 
 
 
 
 
           
 
 
         
Accumulated other comprehensive loss at the end of the period
 
 
(535,826
)    
(454,080
)  
 
(535,826
)    
(454,080
)
 
 
 
 
           
 
 
         
Treasury stock
 
 
     
   
 
     
 
Balance at the beginning of the period
 
 
(1,570,437
)    
(1,210,717
)  
 
(1,570,184
)    
(1,209,135
)
Issuance of common stock under employee stock plans
 
 
6,832
     
8,050
   
 
6,716
     
6,586
 
Purchase of treasury stock
 
 
(6,185
)    
(3,889
)  
 
(6,322
)    
(4,007
)
 
 
 
 
           
 
 
         
Balance at the end of the period
 
 
(1,569,790
)    
(1,206,556
)  
 
(1,569,790
)    
(1,206,556
)
 
 
 
 
           
 
 
         
Total stockholders’ equity
 
$
4,666,781
    $
4,338,096
   
$
4,666,781
    $
4,338,096
 
                                 
 
 
 
 
 
 
 
See accompanying notes.
 
5
 
 
 
Table of Contents
 
AMETEK, Inc.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
                 
 
Six Months Ended
 
 
June 30,
 
 
2019
   
2018
 
Cash provided by (used for):
   
     
 
Operating activities:
   
     
 
Net income
 
$
419,771
    $
375,200
 
Adjustments to reconcile net income to total operating activities:
   
     
 
Depreciation and amortization
   
114,673
     
97,777
 
Deferred income taxes
   
7,347
     
(5,734
)
Share-based compensation expense
   
15,446
     
12,955
 
Gain on sale of facilities
   
(735
)
   
—  
 
Net change in assets and liabilities, net of acquisitions
   
(110,690
)
   
(99,526
)
Pension contributions
   
(1,534
)
   
(1,404
)
Other, net
   
(1,700
)
   
1,274
 
                 
Total operating activities
   
442,578
     
380,542
 
                 
Investing activities:
   
     
 
Additions to property, plant and equipment
   
(43,278
)
   
(28,565
)
Purchases of businesses, net of cash acquired
   
—  
     
(374,644
)
Other, net
   
3,667
     
1,481
 
                 
Total investing activities
   
(39,611
)
   
(401,728
)
                 
Financing activities:
   
     
 
Net change in short-term borrowings
   
(260,802
)
   
(44
)
Proceeds from long-term borrowings
   
100,000
     
—  
 
Repurchases of common stock
   
(6,322
)
   
(4,007
)
Cash dividends paid
   
(63,615
)
   
(64,653
)
Proceeds from stock option exercises
   
45,830
     
18,264
 
Other, net
   
(6,613
)
   
(5,108
)
                 
Total financing activities
   
(191,522
)
   
(55,548
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
2,492
     
(11,873
)
                 
Increase (decrease) in cash and cash equivalents
   
213,937
     
(88,607
)
                 
Cash and cash equivalents:
   
     
 
Beginning of period
   
353,975
     
646,300
 
                 
End of period
 
$
567,912
    $
557,693
 
                 
 
 
 
See accompanying notes.
 
6
 
 
 
Table of Contents
 
AMETEK, Inc.
Notes to Consolidated Financial Statements
June 30, 2019
(Unaudited)
1.
Basis of Presentation
 
 
 
 
 
 
 
 
The accompanying consolidated financial statements are unaudited. AMETEK, Inc. (the “Company”) believes that all adjustments (which primarily consist of normal recurring accruals) necessary for a fair presentation of the consolidated financial position of the Company at June 30, 2019, the consolidated results of its operations for the three and six months ended June 30, 2019 and 2018 and its cash flows for the six months ended June 30, 2019 and 2018 have been included. Quarterly results of operations are not necessarily indicative of results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes presented in the Company’s Annual Report on Form
 10-K
for the year ended December 31, 2018 as filed with the U.S. Securities and Exchange Commission.
As discussed below in Note 2, effective January 1, 2019, the Company adopted the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No.
 2016-02
(Topic 842),
Leases
(“ASU
 2016-02”)
using the effective date transition method. Amounts and disclosures set forth in this Form
 10-Q
reflect this change.
2.
Recent Accounting Pronouncements
 
 
 
 
 
 
 
 
In February 2016, the FASB issued ASU No.
 2016-02
Leases (ASC 842). In July 2018, the FASB issued ASU No.
 2018-10,
“Codification Improvements to Topic 842, Leases” (ASU
2018-10),
which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No.
 2018-11,
“Leases (Topic 842) - Targeted Improvements” (ASU
2018-11),
which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842. ASC 842 supersedes the lease accounting requirements in Accounting Standards Codification Topic 840, Leases (ASC 840). ASC 842 establishes a
right-of-use
model that requires a lessee to record a
right-of-use
(“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 on January 1, 2019 using the effective date transition method. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods.
The Company has elected certain practical expedients permitted under the transition guidance within ASC 842 to leases that commenced before January 1, 2019, including the package of practical expedients. The election of the package of practical expedients resulted in the Company not reassessing prior conclusions under ASC 840 related to lease identification, lease classification and initial direct costs for expired and existing leases prior to January 1, 2019. The Company did not elect the practical expedient to not record short-term leases on its consolidated balance sheet. The adoption of ASU
2016-02
did not have a significant impact on the Company’s consolidated results of operations or cash flows. Upon adoption, the Company recognized a ROU asset and lease liability of $192.4 million and $198.6 million, respectively. See Note 8.
In February 2018, the FASB issued ASU No.
 2018-02,
 Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
 (“ASU
 2018-02”).
 ASU
 2018-02
 addresses a specific consequence of the Tax Act by allowing an election to reclassify from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Act’s reduction of the U.S federal corporate income tax rate. ASU
 2018-02
 is effective for all entities for annual reporting periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal income tax rate in the Tax Act is recognized. The Company adopted ASU
2018-02
on January 1, 2019, and upon adoption, the Company did not elect to reclassify the stranded income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings.
In August 2018, the FASB issued ASU No.
 2018-13,
 Fair Value Measurement
 (“ASU
 2018-13”),
 which changes the fair value measurement disclosure requirements of ASC Topic 820,
 Fair Value Measurement
 (“ASC 820”), by eliminating, modifying and adding to those requirements. ASU
 2018-13
 also modifies the disclosure objective paragraphs of ASC 820 to
 
7
 
 
 
Table of Contents
 
AMETEK, Inc.
Notes to Consolidated Financial Statements
June 30, 2019
(Unaudited)
eliminate (1) “at a minimum” from the phrase “an entity shall disclose at a minimum” and (2) other similar “open ended” disclosure requirements to promote the appropriate exercise of discretion by entities. ASU
2018-13
is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. The Company has not determined the impact ASU
2018-13
may have on the Company’s consolidated financial statement disclosures.
In August 2018, the FASB issued ASU No.
2018-14,
Compensation – Retirement Benefits – Defined Benefit Plans – General
(“ASU
2018-14”),
which changes the disclosure requirements of ASC Topic 715,
Compensation – Retirement Benefits
, by eliminating, modifying and adding to those requirements. ASU
2018-14
is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted and the amendments in this ASU should be applied on a retrospective basis to all periods presented. The Company has not determined the impact ASU
2018-14
may have on the Company’s consolidated financial statement disclosures.
In August 2018, the FASB issued ASU No.
2018-15,
Intangibles – Goodwill and Other –
Internal-Use
Software
(“ASU
2018-15”),
that requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the
internal-use
software guidance in ASC Topic 350,
Intangibles – Goodwill and Other
. ASU
2018-15
requires a customer to disclose the nature of its hosting arrangements that are service contracts and provide disclosures as if the deferred implementation costs were a separate, major depreciable asset class. ASU
2018-15
is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company has not determined the impact ASU
2018-15
may have on the Company’s consolidated results of operations, financial position, cash flows and financial statement disclosures.
3.
Revenues
 
 
 
 
 
 
 
 
The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective method. The cumulative adjustment made to the January 1, 2018 consolidated balance sheet for the adoption of ASC 606 was to increase Retained earnings by $4.2 million, increase Total assets by $7.9 million and increase Total liabilities by $3.7 million.
The outstanding contract asset and (liability) accounts were as follows:
                 
 
2019
   
2018
 
 
(In thousands)
 
Contract assets - January 1
  $
58,266
    $
32,658
 
Contract assets – June 30
   
82,063
     
41,722
 
                 
Change in contract assets – increase
   
23,797
     
9,064
 
                 
Contract liabilities – January 1
   
146,162
     
117,058
 
Contract liabilities – June 30
   
151,447
     
142,016
 
                 
Change in contract liabilities – increase
   
(5,285
)
   
(24,958
)
                 
Net change
 
$
18,512
    $
(15,894
)
                 
 
 
 
 
 
 
 
 
The net change was driven by higher contract assets and an increase in contract liabilities during the period. For the six months ended June 30, 2019 and 2018, the Company recognized revenue of $
110.3
million and $89.1 million, respectively, that was previously included in the beginning balance of contract liabilities.
Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At June 30, 2019 and December 31, 2018, $10.8 million and $8.9 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.
 
8
 
 
 
 
Table of Contents
 
 
AMETEK, Inc.
Notes to Consolidated Financial Statements
June 30, 2019
(Unaudited)
 
Applying the practical expedient available under ASC 606, the remaining performance
obligations exceeding one year as of June 30, 2019 and December 31, 2018 were $164.4 million and $187.2 million, respectively. Remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within
two
to three years.
Geographic Areas
Information about the Company’s operations in different geographic areas is shown below. Net sales were attributed to geographic areas based on the location of the customer.
 
Three Months Ended
June 30, 2019
   
Six Months Ended
June 30, 2019
 
 
EIG
   
EMG
   
Total
   
EIG
   
EMG
   
Total
 
 
(In thousands)
 
United States
 
$
425,543
   
$
250,904
   
$
676,447
   
$
828,935
   
$
511,658
   
$
1,340,593
 
                                                 
International (1):
   
     
     
     
     
     
 
United Kingdom
   
12,920
     
32,450
     
45,370
     
28,347
     
66,338
     
94,685
 
European Union countries
   
100,835
     
103,362
     
204,198
     
203,620
     
209,781
     
413,401
 
Asia
   
185,287
     
48,577
     
233,863
     
379,134
     
95,688
     
474,821
 
Other foreign countries
   
95,662
     
33,872
     
129,534
     
187,122
     
66,480
     
253,603
 
                                                 
Total international
   
394,704
     
218,261
     
612,965
     
798,223
     
438,287
     
1,236,510
 
                                                 
Consolidated net sales
 
$
820,247
   
$
469,165
   
$
1,289,412
   
$
1,627,158
   
$
949,945
   
$
2,577,103
 
                                                 
 
(1) Includes U.S. export sales of $
322.1
 million and $
647.5
​​​​​​​ million for the three months ended and the six months ended, respectively.
Information about the Company’s operations in different geographic areas is shown below. Net sales were attributed to geographic areas based on the location of the customer.
 
Three Months Ended
June 30, 2018
   
Six Months Ended
June 30, 2018
 
 
EIG
   
EMG
   
Total
   
EIG
   
EMG
   
Total
 
 
(In thousands)
 
United States
 
$
357,560
   
$
241,935
   
$
599,495
   
$
686,636
   
$
472,799
   
$
1,159,435
 
                                                 
International(1):
   
     
     
     
     
     
 
United Kingdom
   
15,588
     
33,166
     
48,754
     
29,328
     
68,549
     
97,877
 
European Union countries
   
95,778
     
98,585
     
194,363
     
188,080
     
206,399
     
394,479
 
Asia
   
191,169
     
55,435
     
246,604
     
382,654
     
106,498
     
489,152
 
Other foreign countries
   
84,363
     
35,356
     
119,719
     
174,186
     
66,453
     
240,639
 
                                                 
Total international
   
386,898
     
222,542
     
609,440
     
774,248
     
447,899
     
1,222,147
 
                                                 
Consolidated net sales
 
$
744,458
   
$
464,477
   
$
1,208,935
   
$
1,460,884
   
$
920,698
   
$
2,381,582
 
                                                 
 
(1) Includes U.S. export sales of $
320.5
 million and $
635.6
​​​​​​​ million for the three months ended and the six months ended, respectively.
 
9
 
 
Table of Contents
 
AMETEK, Inc.
Notes to Consolidated Financial Statements
June 30, 2019
(Unaudited)
 
Major Products and Services
The Company’s major products and services in the reportable segments were as follows:
 
Three Months Ended 
June 30, 2019
   
Six Months Ended 
June 30, 2019
 
 
EIG
   
EMG
   
Total
   
EIG
   
EMG
   
Total
 
 
(In thousands)
 
Process and analytical instrumentation
 
$
583,938
   
$
—  
   
$
583,938
   
$
1,161,278
   
$
—  
   
$
1,161,278
 
Aerospace and Power
   
236,309
     
120,392
     
356,701
     
465,880
     
239,270
     
705,150
 
Automation and engineered solutions
   
—  
     
348,773
     
348,773
     
—  
     
710,675
     
710,675
 
                                                 
Consolidated net sales
 
$
820,247
   
$
469,165
   
$
1,289,412
   
$
1,627,158
   
$
949,945
   
$
2,577,103
 
                                                 
             
 
Three Months Ended
June 30, 2018
   
Six Months Ended
June 30, 2018
 
 
EIG
   
EMG
   
Total
   
EIG
   
EMG
   
Total
 
 
(In thousands)
 
Process and analytical instrumentation
 
$
515,854
   
$
—  
   
$
515,854
   
$
1,015,491
   
$
—  
   
$
1,015,491
 
Aerospace and Power
   
228,604
     
113,403
     
342,007
     
445,393
     
222,060
     
667,453
 
Automation and engineered solutions
   
—  
     
351,074
     
351,074
     
—  
     
698,638
     
698,638
 
                                                 
Consolidated net sales
 
$
744,458
   
$
464,477
   
$
1,208,935
   
$
1,460,884
   
$
920,698
   
$
2,381,582
 
                                                 
Timing of Revenue Recognition
The Company’s timing of revenue recognition was as follows:
 
Three Months Ended 
June 30, 2019
   
Six Months Ended 
June 30, 2019
 
 
EIG
   
EMG
   
Total
   
EIG
   
EMG
   
Total
 
 
(In thousands)
 
Products transferred at a point in time
 
$
654,155
   
$
434,175
   
$
1,088,330
   
$
1,331,988
   
$
869,780
   
$
2,201,768
 
Products and services transferred over time
   
166,092
     
34,990
     
201,082
     
295,170
     
80,165
     
375,335
 
                                                 
Consolidated net sales
 
$
820,247
   
$