10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 10-Q

_________________________

(Mark One)

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

For the quarterly period ended June 30, 2021

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

(State or other jurisdiction of

incorporation or organization)

1100 Cassatt Road

Berwyn, Pennsylvania

(Address of principal executive offices)

14-1682544

(I.R.S. Employer

Identification No.)

19312-1177

(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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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	☐ (Do not check if a smaller reporting company)	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 30, 2021 was 231,205,619 shares.

AMETEK, Inc.

Form 10-Q

Table of Contents

	Page
PART I. FINANCIAL INFORMATION
Item 1.Financial Statements
Consolidated Statement of Income for the three and six months ended June 30, 2021 and 2020	4
Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2021 and 2020	5
Consolidated Balance Sheet at June 30, 2021 and December 31, 2020	6
Consolidated Statement of Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020	7
Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2021 and 2020	8
Notes to Consolidated Financial Statements	9
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 4.Controls and Procedures	26
PART II. OTHER INFORMATION
Item 1A.Risk Factors	28
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6.Exhibits	29
SIGNATURES	30

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales	$	1,386,346	$	1,011,922	$	2,602,088	$	2,214,140
Cost of sales	912,712		669,195		1,702,104		1,493,842
Selling, general and administrative	157,023		115,737		290,028		261,268
Total operating expenses	1,069,735		784,932		1,992,132		1,755,110
Operating income	316,611		226,990		609,956		459,030
Interest expense	(20,442)		(22,669)		(39,389)		(45,410)
Other (expense) income, net	(4,414)		2,131		(6,356)		143,907
Income before income taxes	291,755		206,452		564,211		557,527
Provision for income taxes	60,076		40,235		113,299		110,694
Net income	$	231,679	$	166,217	$	450,912	$	446,833
Basic earnings per share	$	1.00	$	0.73	$	1.96	$	1.95
Diluted earnings per share	$	1.00	$	0.72	$	1.94	$	1.94
Weighted average common shares outstanding:
Basic shares	230,828		229,225		230,632		229,094
Diluted shares	232,841		230,381		232,569		230,626
Dividends declared and paid per share	$	0.20	$	0.18	$	0.40	$	0.36

See accompanying notes.

3

AMETEK, Inc.

Condensed Consolidated Statement of Comprehensive Income

(In thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Total comprehensive income	$	237,673	$	183,178	$	448,499	$	421,195

See accompanying notes.

4

AMETEK, Inc.

Consolidated Balance Sheet

(In thousands)

	June 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	390,644	$	1,212,822
Receivables, net	754,045		597,472
Inventories, net	711,620		559,171
Other current assets	185,772		153,005
Total current assets	2,042,081		2,522,470
Property, plant and equipment, net	598,827		526,530
Right of use assets, net	178,698		167,233
Goodwill	5,139,807		4,224,906
Other intangibles, net	3,473,694		2,623,719
Investments and other assets	322,157		292,625
Total assets	$	11,755,264	$	10,357,483
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt, net	$	699,996	$	132,284
Accounts payable	446,532		360,370
Customer advanced payments	294,073		194,633
Income taxes payable	24,380		38,896
Accrued liabilities and other	392,648		349,732
Total current liabilities	1,857,629		1,075,915
Long-term debt, net	2,262,100		2,281,441
Deferred income taxes	730,116		533,478
Other long-term liabilities	562,120		517,303
Total liabilities	5,411,965		4,408,137
Stockholders’ equity:
Common stock	2,684		2,676
Capital in excess of par value	964,791		921,752
Retained earnings	7,453,401		7,094,656
Accumulated other comprehensive loss	(506,881)		(504,468)
Treasury stock	(1,570,696)		(1,565,270)
Total stockholders’ equity	6,343,299		5,949,346
Total liabilities and stockholders’ equity	$	11,755,264	$	10,357,483

See accompanying notes.

5

AMETEK, Inc.

Consolidated Statement of Stockholders’ Equity

(In thousands)

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Capital stock
Preferred stock, $0.01 par value	$	—	$	—	$	—	$	—
Common stock, $0.01 par value
Balance at the beginning of the period	2,678		2,664		2,676		2,662
Shares issued	6		4		8		6
Balance at the end of the period	2,684		2,668		2,684		2,668
Capital in excess of par value
Balance at the beginning of the period	928,412		837,755		921,752		832,821
Issuance of common stock under employee stock plans	24,226		11,811		19,446		8,897
Share-based compensation expense	12,153		11,205		23,593		19,053
Balance at the end of the period	964,791		860,771		964,791		860,771
Retained earnings
Balance at the beginning of the period	7,267,856		6,626,703		7,094,656		6,387,612
Net income	231,679		166,217		450,912		446,833
Cash dividends paid	(46,134)		(41,234)		(92,167)		(82,399)
Adoption of ASU 2016-13	—		—		—		(360)
Balance at the end of the period	7,453,401		6,751,686		7,453,401		6,751,686
Accumulated other comprehensive (loss) income
Foreign currency translation:
Balance at the beginning of the period	(260,785)		(330,530)		(250,748)		(286,248)
Translation adjustments	7,547		18,064		(13,953)		(49,025)
Change in long-term intercompany notes	1,329		4,477		(5,566)		(1,024)
Net investment hedge instruments (loss) gain, net of tax of $1,459 and $2,339 for the quarter ended June 30, 2021 and 2020, and $(4,479) and $(6,778) for the six months ended June 30, 2021 and 2020, respectively	(4,512)		(7,263)		13,846		21,045
Balance at the end of the period	(256,421)		(315,252)		(256,421)		(315,252)
Defined benefit pension plans:
Balance at the beginning of the period	(252,090)		(245,208)		(253,720)		(246,891)
Amortization of net actuarial loss and other, net of tax of $(527) and $(531) for the quarter ended June 30, 2021 and 2020, and $(1,054) and $(1,062) for the six months ended June 30, 2021 and 2020, respectively	1,630		1,683		3,260		3,366
Balance at the end of the period	(250,460)		(243,525)		(250,460)		(243,525)
Accumulated other comprehensive loss at the end of the period	(506,881)		(558,777)		(506,881)		(558,777)
Treasury stock
Balance at the beginning of the period	(1,565,323)		(1,565,381)		(1,565,270)		(1,574,464)
Issuance of common stock under employee stock plans	(492)		(132)		7,452		9,052
Purchase of treasury stock	(4,881)		(4,395)		(12,878)		(4,496)
Balance at the end of the period	(1,570,696)		(1,569,908)		(1,570,696)		(1,569,908)
Total stockholders’ equity	$	6,343,299	$	5,486,440	$	6,343,299	$	5,486,440

See accompanying notes.

6

AMETEK, Inc.

Condensed Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

	Six months ended June 30,
	2021		2020
Cash provided by (used for):
Operating activities:
Net income	$	450,912	$	446,833
Adjustments to reconcile net income to total operating activities:
Depreciation and amortization	139,814		127,404
Deferred income taxes	27,482		(2,976)
Share-based compensation expense	23,593		19,053
Gain on sale of business	—		(141,020)
Gain on sale of facilities	—		(4,592)
Net change in assets and liabilities, net of acquisitions	(58,497)		145,473
Pension contributions	(4,094)		(3,209)
Other, net	(7,767)		(1,598)
Total operating activities	571,443		585,368
Investing activities:
Additions to property, plant and equipment	(41,005)		(27,017)
Purchases of businesses, net of cash acquired	(1,840,845)		(116,509)
Proceeds from sale of business	—		245,311
Proceeds from sale of facilities	—		5,463
Other, net	(292)		(2,457)
Total investing activities	(1,882,142)		104,791
Financing activities:
Net change in short-term borrowings	569,949		(374,771)
Proceeds from long-term borrowings	—		500,000
Repurchases of common stock	(12,878)		(4,496)
Cash dividends paid	(92,167)		(82,399)
Proceeds from stock option exercises	31,112		20,676
Other, net	(4,420)		(2,614)
Total financing activities	491,596		56,396
Effect of exchange rate changes on cash and cash equivalents	(3,075)		(8,610)
(Decrease) Increase in cash and cash equivalents	(822,178)		737,945
Cash and cash equivalents:
Beginning of period	1,212,822		393,030
End of period	$	390,644	$	1,130,975

See accompanying notes.

7

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(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, 2021, the consolidated results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020 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, 2020 as filed with the U.S. Securities and Exchange Commission.

2.    Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740. The Company prospectively adopted ASU 2019-12, effective January 1, 2021, and the adoption did not have a significant impact on the Company’s consolidated results of operations, financial position, cash flows and financial statement disclosures.

3.    Revenues

The outstanding contract asset and liability accounts were as follows:

	2021		2020
	(In thousands)
Contract assets—January 1	$	68,971	$	73,039
Contract assets – June 30	73,853		67,804
Change in contract assets – increase (decrease)	4,882		(5,235)
Contract liabilities – January 1	215,093		167,306
Contract liabilities – June 30	333,409		199,967
Change in contract liabilities – increase	(118,316)		(32,661)
Net change	$	(113,434)	$	(37,896)

The net change for the six months ended June 30, 2021 was primarily driven by contract liabilities from the 2021 acquisitions' advance payments from customers. For the six months ended June 30, 2021 and 2020, the Company recognized revenue of $145.2 million and $105.3 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, 2021 and December 31, 2020, $39.4 million and $20.5 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.

The remaining performance obligations exceeding one year as of June 30, 2021 and December 31, 2020 were $422.3 million and $300.8 million, respectively. The increase was primarily driven by the 2021 acquisitions. Remaining performance obligations represent the transaction price of firm, non-cancelable 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.

8

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

Geographic Areas

Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the three and six months ended June 30:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	495,039	$	225,912	$	720,951	$	883,940	$	436,094	$	1,320,034
International(1):
United Kingdom	20,649		28,568		49,217		42,596		58,619		101,215
European Union countries	117,856		103,604		221,460		221,521		198,901		420,422
Asia	217,854		65,449		283,303		415,415		126,643		542,058
Other foreign countries	82,536		28,879		111,415		161,386		56,973		218,359
Total international	438,895		226,500		665,395		840,918		441,136		1,282,054
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

________________

(1)    Includes U.S. export sales of $365.5 million and $696.4 million for the three and six months ended June 30, 2021, respectively.

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	338,757	$	189,369	$	528,126	$	745,302	$	424,058	$	1,169,360
International(1):
United Kingdom	13,427		22,752		36,179		28,220		55,890		84,110
European Union countries	79,901		79,327		159,228		185,577		168,093		353,670
Asia	161,190		47,536		208,726		325,935		91,366		417,301
Other foreign countries	54,607		25,056		79,663		137,073		52,626		189,699
Total international	309,125		174,671		483,796		676,805		367,975		1,044,780
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

______________

(1)    Includes U.S. export sales of $257.9 million and $563.1 million for the three and six months ended June 30, 2020, respectively.

Major Products and Services

The Company’s major products and services in the reportable segments were as follows:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	644,121	$	—	$	644,121	$	1,220,680	$	—	$	1,220,680
Aerospace and power	289,813		126,466		416,279		504,178		248,639		752,817
Automation and engineered solutions	—		325,946		325,946		—		628,591		628,591
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

9

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	483,540	$	—	$	483,540	$	1,031,980	$	—	$	1,031,980
Aerospace and power	164,342		104,133		268,475		390,127		231,384		621,511
Automation and engineered solutions	—		259,907		259,907		—		560,649		560,649
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

Timing of Revenue Recognition

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	767,514	$	408,569	$	1,176,083	$	1,414,766	$	791,600	$	2,206,366
Products and services transferred over time	166,420		43,843		210,263		310,092		85,630		395,722
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	525,168	$	324,502	$	849,670	$	1,158,708	$	703,561	$	1,862,269
Products and services transferred over time	122,714		39,538		162,252		263,399		88,472		351,871
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

Product Warranties

The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities and other in the consolidated balance sheet.

Changes in the accrued product warranty obligation were as follows:

	Six Months Ended June 30,
	2021		2020
	(In thousands)
Balance at the beginning of the period	$	27,839	$	27,611
Accruals for warranties issued during the period	5,964		6,874
Settlements made during the period	(6,620)		(7,605)
Warranty accruals related to acquired businesses and other during the period	2,169		326
Balance at the end of the period	$	29,352	$	27,206

Accounts Receivable

The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.

At June 30, 2021, the Company had $754.0 million of accounts receivable, net of allowances of $12.1 million. Changes in the allowance were not material for the three and six months ended June 30, 2021.

10

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

4.    Earnings Per Share

The calculation of basic earnings per share is based on the weighted average number of common shares considered outstanding during the periods. The calculation of diluted earnings per share reflects the effect of all potentially dilutive securities (principally outstanding stock options and restricted stock grants). Securities that are anti-dilutive have been excluded and are not significant. The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
	(In thousands)
Weighted average shares:
Basic shares	230,828	229,225	230,632	229,094
Equity-based compensation plans	2,013	1,156	1,937	1,532
Diluted shares	232,841	230,381	232,569	230,626

5.    Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company utilizes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following table provides the Company’s assets that are measured at fair value on a recurring basis, consistent with the fair value hierarchy, at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
	Fair Value		Fair Value
	(In thousands)
Mutual fund investments	$	10,085	$	8,969

The fair value of mutual fund investments, which are valued as level 1 investments, was based on quoted market prices. The mutual fund investments are shown as a component of investments and other assets on the consolidated balance sheet.

For the six months ended June 30, 2021 and 2020, gains and losses on the investments noted above were not significant. No transfers between level 1 and level 2 investments occurred during the six months ended June 30, 2021 and 2020.

Financial Instruments

Cash, cash equivalents and mutual fund investments are recorded at fair value at June 30, 2021 and December 31, 2020 in the accompanying consolidated balance sheet.

11

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at June 30, 2021 and December 31, 2020:

	June 30, 2021				December 31, 2020
	Recorded Amount		Fair Value		Recorded Amount		Fair Value
	(In thousands)
Long-term debt, net (including current portion)	$	(2,326,547)	$	(2,485,398)	$	(2,347,587)	$	(2,550,956)

The fair value of net short-term borrowings approximates the carrying value. Net short-term borrowings are valued as level 2 liabilities as they are corroborated by observable market data. The Company’s net long-term debt is all privately held with no public market for this debt, therefore, the fair value of net long-term debt was computed based on comparable current market data for similar debt instruments and is considered a level 3 liability.

Foreign Currency

At June 30, 2020, the Company had a Canadian dollar forward contract for a total notional value of 24.0 million Canadian dollars and four British pound forward contracts for a total notional value of 40.0 million British pounds. For the six months ended June 30, 2020, realized and unrealized gains and losses on foreign currency forward contracts were not significant. The Company does not typically designate its foreign currency forward contracts as hedges.

6.    Hedging Activities

The Company has designated certain foreign-currency-denominated long-term borrowings as hedges of the net investment in certain foreign operations. As of June 30, 2021, these net investment hedges included British-pound-and Euro-denominated long-term debt. These borrowings were designed to create net investment hedges in certain designated foreign subsidiaries. The Company designated the British-pound- and Euro-denominated loans referred to above as hedging instruments to offset translation gains or losses on the net investment due to changes in the British pound and Euro exchange rates. These net investment hedges are evidenced by management’s contemporaneous documentation supporting the hedge designation. Any gain or loss on the hedging instruments (the debt) following hedge designation is reported in accumulated other comprehensive income in the same manner as the translation adjustment on the hedged investment based on changes in the spot rate, which is used to measure hedge effectiveness.

At June 30, 2021, the Company had $310.7 million of British-pound-denominated loans, which were designated as a hedge against the net investment in British pound functional currency foreign subsidiaries. At June 30, 2021, the Company had $681.4 million in Euro-denominated loans, which were designated as a hedge against the net investment in Euro functional currency foreign subsidiaries. As a result of the British-pound- and Euro-denominated loans designated and 100% effective as net investment hedges, $18.3 million of pre-tax currency remeasurement gains have been included in the foreign currency translation component of other comprehensive income for the six months ended June 30, 2021.

7.    Inventories, net

	June 30, 2021		December 31, 2020
	(In thousands)
Finished goods and parts	$	97,921	$	81,619
Work in process	138,949		102,945
Raw materials and purchased parts	474,750		374,607
Total inventories, net	$	711,620	$	559,171

12

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

8.    Leases

The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the six months ended June 30, 2021 and June 30, 2020. The Company's leases have initial lease terms ranging from one month to 14 years. Certain lease agreements contain provisions for future rent increases.

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	12,006	$	10,284	$	23,523	$	20,989
Variable lease cost	1,402		976		2,872		2,090
Total lease cost	$	13,408	$	11,260	$	26,395	$	23,079

Supplemental balance sheet information related to leases was as follows:

	June 30, 2021		December 31, 2020
	(In thousands)
Right of use assets, net	$	178,698	$	167,233
Lease liabilities included in Accrued Liabilities and other	48,159		44,948
Lease liabilities included in Other long-term liabilities	135,930		128,173
Total lease liabilities	$	184,089	$	173,121

Maturities of lease liabilities as of June 30, 2021 were as follows:

Lease Liability Maturity Analysis	Operating Leases
	(In thousands)
Remaining 2021	$	26,820
2022	47,870
2023	38,592
2024	26,227
2025	19,084
Thereafter	35,419
Total lease payments	194,012
Less: imputed interest	9,923
	$	184,089

The Company does not have any significant leases that have not yet commenced.

9.    Acquisitions and Divestiture

Acquisitions

The Company spent $1,840.8 million in cash, net of cash acquired, to acquire Magnetrol International ("Magnetrol"), Crank Software, and EGS Automation ("EGS") in March 2021, and NSI-MI Technologies ("NSI-MI") and Abaco Systems, Inc. ("Abaco") in April 2021. Magnetrol is a leading provider of level and flow control solutions for challenging process applications across a diverse set of end markets including medical, pharmaceutical, oil and gas, food and beverage, and general industrial. Crank Software is a leading provider of embedded graphical user interface software and services. EGS is an automation solutions provider that designs and manufactures highly engineered, customized robotic solutions used in critical applications for the medical, food and beverage, and general industrial markets. NSI-MI is a leading provider of radio

13

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

frequency and microwave test and measurement systems for niche applications across the aerospace, defense, automotive, wireless communications, and research markets. Abaco specializes in open-architecture computing and electronic systems for aerospace, defense, and specialized industrial markets and is a leading provider of mission critical embedded computing systems. Magnetrol, Crank Software, NSI-MI, and Abaco are part of EIG. EGS is part of EMG.

The following table represents the allocation of the purchase price for the net assets of the acquisitions based on the estimated fair values at acquisition (in millions):

	Abaco		Other Acquisitions		Total
Property, plant and equipment	$	52.9	$	38.2	$	91.1
Goodwill	691.4		231.4		922.8
Other intangible assets	675.0		267.3		942.3
Deferred income taxes	(134.1)		(30.4)		(164.5)
Net working capital and other(1)	60.7		(11.6)		49.1
Total cash paid	$	1,345.9	$	494.9	$	1,840.8

________________

(1)Includes $66.8 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.

The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the 2021 acquisitions. Abaco's computing and electronic solutions expand and complement the Company's existing aerospace and defense businesses. NSI-MI strengthens the Company's test and measurement platform. Magnetrol's solutions combined with the Company’s existing Sensors, Test and Calibration business, becomes an industry leading differentiated sensor platform with a broad range of level and flow measurement solutions. Crank Software expands the Company's growing portfolio of software solutions. EGS complements the Company's existing Dunkermotoren business providing highly customizable engineering design and automation capabilities. The Company expects approximately $106 million of the goodwill relating to the 2021 acquisitions will be tax deductible in future years.

At June 30, 2021, the purchase price allocated to other intangible assets of $942.3 million consists of $145.3 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $797.0 million of other intangible assets consists of $632.1 million of customer relationships, which are being amortized over a period of 15 to 20 years, and $164.9 million of purchased technology, which is being amortized over a period of 11 to 20 years. Amortization expense for each of the next five years for the 2021 acquisitions is expected to approximate $47 million per year.

The Company is in the process of finalizing the measurement of certain tangible and intangible assets and liabilities for its 2021 acquisitions including inventory, property, plant and equipment, goodwill, trade names, customer relationships and purchased technology, and the accounting for income taxes.

The acquisitions had an immaterial impact on reported net income and diluted earnings per share for the three and six months ended June 30, 2021. Had the acquisitions been made at the beginning of 2021 or 2020, pro forma net income and diluted earnings per share for the three and six months ended June 30, 2021 and 2020, would not have been materially different than the amounts reported. Pro forma net sales would not have been materially different than the amounts reported for the three and six months ended June 30, 2021 and would have been approximately 10% higher than the reported amounts for the three and six months ended June 30, 2020.

Divestiture

The Company completed its sale of Reading Alloys to Kymera International in March 2020 for net cash proceeds of $245.3 million. The sale resulted in a pretax gain of $141.0 million, recorded in Other income, net in the Consolidated Statement of Income, and income tax expense of approximately $31.4 million in connection with the sale. Reading Alloys revenue and costs were reported within the EMG segment through the date of sale.

14

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

10.    Goodwill

The changes in the carrying amounts of goodwill by segment were as follows:

	EIG		EMG		Total
	(In millions)
Balance at December 31, 2020	$	3,050.3	$	1,174.6	$	4,224.9
Goodwill acquired	916.9		5.9		922.8
Purchase price allocation adjustments and other	1.9		—		1.9
Foreign currency translation adjustments	(6.1)		(3.7)		(9.8)
Balance at June 30, 2021	$	3,963.0	$	1,176.8	$	5,139.8

11.    Income Taxes

At June 30, 2021, the Company had gross uncertain tax benefits of $132.3 million, of which $81.4 million, if recognized, would impact the effective tax rate.

The following is a reconciliation of the liability for uncertain tax positions (in millions):

Balance at December 31, 2020	$	100.7
Additions for tax positions	32.4
Reductions for tax positions	(0.8)
Balance at June 30, 2021	$	132.3

The additions above primarily reflect the tax positions included as a component of goodwill for businesses recently acquired. The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense. The amounts recognized in income tax expense for interest and penalties during the three and six months ended June 30, 2021 and 2020 were not significant.

The effective tax rate for the three months ended June 30, 2021 was 20.6%, compared with 19.5% for the three months ended June 30, 2020.

12.    Debt

On April 26, 2021, the Company along with certain of its foreign subsidiaries amended and restated its credit agreement dated as of September 22, 2011, as amended and restated as of March 10, 2016 and as further amended and restated as of October 30, 2018, with the lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., PNC Bank, National Association, Truist Bank and Wells Fargo Bank, National Association, as Co-Syndication Agents. The credit agreement amends and restates the Company’s existing revolving credit facility to add a new five-year, delayed draw, term loan for up to $800 million. The credit agreement places certain restrictions on allowable additional indebtedness. At June 30, 2021, the Company had $150.0 million outstanding on the term loan.

15

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

13.    Share-Based Compensation

The Company's share-based compensation plans are described in Note 11, Share-Based Compensation, to the consolidated financial statements in Part II, Item 8, filed on the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Share Based Compensation Expense

Total share-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Stock option expense	$	3,326	$	3,626	$	7,249	$	6,999
Restricted stock expense	5,690		4,586		11,917		8,128
Performance restricted stock unit expense	3,137		2,993		4,427		3,926
Total pre-tax expense	$	12,153	$	11,205	$	23,593	$	19,053

Pre-tax share-based compensation expense is included in the consolidated statement of income in either Cost of sales or Selling, general and administrative expenses, depending on where the recipient’s cash compensation is reported.

Stock Options

The fair value of each stock option grant is estimated on the grant date using a Black-Scholes-Merton option pricing model. The following weighted average assumptions were used in the Black-Scholes-Merton model to estimate the fair values of stock options granted during the periods indicated:

	Six Months Ended June 30, 2021			Year Ended December 31, 2020
Expected volatility	24.2		%	22.2		%
Expected term (years)	5.0			5.0
Risk-free interest rate	0.85		%	0.52		%
Expected dividend yield	0.66		%	1.14		%
Black-Scholes-Merton fair value per stock option granted	$	25.63		$	11.01

The following is a summary of the Company’s stock option activity and related information:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(In thousands)			(Years)	(In millions)
Outstanding at December 31, 2020	3,950	$	65.16
Granted	552	121.91
Exercised	(511)	59.57
Forfeited	(56)	80.45
Outstanding at June 30, 2021	3,935	$	73.63	6.2	$	235.6
Exercisable at June 30, 2021	2,567	$	64.78	4.8	$	176.4

The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2021 was $30.5 million. The total fair value of stock options vested during the six months ended June 30, 2021 was $13.6 million. As of June 30, 2021,

16

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

there was approximately $22.6 million of expected future pre-tax compensation expense related to the 1.4 million non-vested stock options outstanding, which is expected to be recognized over a weighted average period of approximately two years.

Restricted Stock

The following is a summary of the Company’s non-vested restricted stock activity and related information:

	Shares	Weighted Average  Grant Date Fair Value
	(In thousands)
Non-vested restricted stock outstanding at December 31, 2020	701	$	76.86
Granted	148	122.01
Vested	(347)	68.06
Forfeited	(21)	91.66
Non-vested restricted stock outstanding at June 30, 2021	481	$	96.42

The total fair value of restricted stock vested during the six months ended June 30, 2021 was $23.6 million. As of June 30, 2021, there was approximately $37.0 million of expected future pre-tax compensation expense related to the 0.5 million non-vested restricted shares outstanding, which is expected to be recognized over a weighted average period of approximately two years.

Performance Restricted Stock Units

In March 2021, the Company granted performance restricted stock units ("PRSU") to officers and certain key management-level employees. The PRSUs vest over a period up to three years from the grant date based on continuous service, with the number of shares earned (0% to 200% of the target award) depending upon the extent to which the Company achieves certain financial and market performance targets measured over the period from January 1 of the year of grant to December 31 of the third year. Half of the PRSUs were valued in a manner similar to restricted stock as the financial targets are based on the Company’s operating results, which represents a performance condition. The grant date fair value of these PRSUs are recognized as compensation expense over the vesting period based on the probable number of awards to vest at each reporting date.

The other half of the PRSUs were valued using a Monte Carlo model as the performance target is related to the Company’s total shareholder return compared to a group of peer companies, which represents a market condition. The Company recognizes the grant date fair value of these awards as compensation expense ratably over the vesting period.

17

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

The following is a summary of the Company’s non-vested performance restricted stock activity and related information:

	Shares	Weighted Average  Grant Date Fair Value
	(In thousands)
Non-vested performance restricted stock outstanding at December 31, 2020	264	$	72.90
Granted	81	121.91
Performance assumption change 1	39	78.20
Vested	(88)	78.20
Forfeited	(4)	81.76
Non-vested performance restricted stock outstanding at June 30, 2021	292	$	85.44

_________________________________________

1 Reflects the number of PRSUs above target levels based on performance metrics.

As of June 30, 2021, there was approximately $9.7 million of expected future pre-tax compensation expense related to the 0.3 million non-vested restricted shares outstanding, which is expected to be recognized over a weighted average period of less than one year.

14.    Retirement and Pension Plans

The components of net periodic pension benefit expense (income) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Defined benefit plans:
Service cost	$	2,030	$	1,929	$	4,051	$	3,879
Interest cost	4,581		5,600		9,148		11,236
Expected return on plan assets	(14,221)		(13,558)		(28,395)		(27,208)
Amortization of net actuarial loss and other	4,379		3,931		8,732		7,907
Pension income	(3,231)		(2,098)		(6,464)		(4,186)
Other plans:
Defined contribution plans	7,961		6,882		16,416		16,907
Foreign plans and other	2,123		1,832		4,357		3,873
Total other plans	10,084		8,714		20,773		20,780
Total net pension expense	$	6,853	$	6,616	$	14,309	$	16,594

For defined benefit plans, the net periodic benefit income, other than the service cost component, is included in “Other (expense) income, net” in the consolidated statement of income.

For the six months ended June 30, 2021 and 2020, contributions to the Company’s defined benefit pension plans were $4.1 million and $3.2 million, respectively. The Company’s current estimate of 2021 contributions to its worldwide defined benefit pension plans is in line with the range disclosed in Note 12 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

18

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

15.    Contingencies

Asbestos Litigation

The Company (including its subsidiaries) has been named as a defendant in a number of asbestos-related lawsuits. Certain of these lawsuits relate to a business which was acquired by the Company and do not involve products which were manufactured or sold by the Company. In connection with these lawsuits, the seller of such business has agreed to indemnify the Company against these claims (the “Indemnified Claims”). The Indemnified Claims have been tendered to, and are being defended by, such seller. The seller has met its obligations, in all respects, and the Company does not have any reason to believe such party would fail to fulfill its obligations in the future. To date, no judgments have been rendered against the Company as a result of any asbestos-related lawsuit. The Company believes that it has good and valid defenses to each of these claims and intends to defend them vigorously.

Environmental Matters

Certain historic processes in the manufacture of products have resulted in environmentally hazardous waste by-products as defined by federal and state laws and regulations. At June 30, 2021, the Company is named a Potentially Responsible Party (“PRP”) at 13 non-AMETEK-owned former waste disposal or treatment sites (the “non-owned” sites). The Company is identified as a “de minimis” party in 12 of these sites based on the low volume of waste attributed to the Company relative to the amounts attributed to other named PRPs. In eight of these sites, the Company has reached a tentative agreement on the cost of the de minimis settlement to satisfy its obligation and is awaiting executed agreements. The tentatively agreed-to settlement amounts are fully reserved. In the other four sites, the Company is continuing to investigate the accuracy of the alleged volume attributed to the Company as estimated by the parties primarily responsible for remedial activity at the sites to establish an appropriate settlement amount. At the remaining site where the Company is a non-de minimis PRP, the Company is participating in the investigation and/or related required remediation as part of a PRP Group and reserves have been established to satisfy the Company’s expected obligations. The Company historically has resolved these issues within established reserve levels and reasonably expects this result will continue. In addition to these non-owned sites, the Company has an ongoing practice of providing reserves for probable remediation activities at certain of its current or previously owned manufacturing locations (the “owned” sites). For claims and proceedings against the Company with respect to other environmental matters, reserves are established once the Company has determined that a loss is probable and estimable. This estimate is refined as the Company moves through the various stages of investigation, risk assessment, feasibility study and corrective action processes. In certain instances, the Company has developed a range of estimates for such costs and has recorded a liability based on the best estimate. It is reasonably possible that the actual cost of remediation of the individual sites could vary from the current estimates and the amounts accrued in the consolidated financial statements; however, the amounts of such variances are not expected to result in a material change to the consolidated financial statements. In estimating the Company’s liability for remediation, the Company also considers the likely proportionate share of the anticipated remediation expense and the ability of the other PRPs to fulfill their obligations.

Total environmental reserves at June 30, 2021 and December 31, 2020 were $33.8 million and $32.4 million, respectively, for both non-owned and owned sites. For the six months ended June 30, 2021, the Company recorded $4.5 million in reserves. Additionally, the Company spent $3.1 million on environmental matters for the six months ended June 30, 2021. The Company’s reserves for environmental liabilities at June 30, 2021 and December 31, 2020 included reserves of $6.3 million and $7.4 million, respectively, for an owned site acquired in connection with the 2005 acquisition of HCC Industries (“HCC”). The Company is the designated performing party for the performance of remedial activities for one of several operating units making up a Superfund site in the San Gabriel Valley of California. The Company has obtained indemnifications and other financial assurances from the former owners of HCC related to the costs of the required remedial activities.

The Company has agreements with other former owners of certain of its acquired businesses, as well as new owners of previously owned businesses. Under certain of the agreements, the former or new owners retained, or assumed and agreed to indemnify the Company against, certain environmental and other liabilities under certain circumstances. The Company and some of these other parties also carry insurance coverage for some environmental matters. To date, these parties have met their obligations in all material respects.

19

AMETEK, Inc.

Notes to Consolidated Financial Statements

June 30, 2021

(Unaudited)

The Company believes it has established reserves for the environmental matters described above, which are sufficient to perform all known responsibilities under existing claims and consent orders. The Company has no reason to believe that other third parties would fail to perform their obligations in the future. In the opinion of management, based on presently available information and the Company’s historical experience related to such matters, an adequate provision for probable costs has been made and the ultimate cost resulting from these actions is not expected to materially affect the consolidated results of operations, financial position or cash flows of the Company.

The Company has been remediating groundwater contamination for several contaminants, including trichloroethylene (“TCE”), at a formerly owned site in El Cajon, California. Several lawsuits have been filed against the Company alleging damages resulting from the groundwater contamination, including property damages and funds for medical monitoring to detect causally related personal injury, and seeking compensatory and punitive damages. While the Company believes that it has good and valid defenses to each of these claims and intends to defend them vigorously if pursued through trial, the parties agreed to terms to globally settle the cases. After extensive negotiations, the Company finalized and paid in April 2021 a global settlement of these lawsuits for an aggregate amount of $6.8 million, for which the Company had previously established reserves sufficient to cover this settlement.  

20

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

The following table sets forth net sales and income by reportable segment and on a consolidated basis:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Net sales:
Electronic Instruments	$	933,934	$	647,882	$	1,724,858	$	1,422,107
Electromechanical	452,412		364,040		877,230		792,033
Consolidated net sales	$	1,386,346	$	1,011,922	$	2,602,088	$	2,214,140
Operating income and income before income taxes:
Segment operating income:
Electronic Instruments	$	226,637	$	159,593	$	433,534	$	330,864
Electromechanical	112,434		84,287		217,467		160,851
Total segment operating income	339,071		243,880		651,001		491,715
Corporate administrative expenses	(22,460)		(16,890)		(41,045)		(32,685)
Consolidated operating income	316,611		226,990		609,956		459,030
Interest expense	(20,442)		(22,669)		(39,389)		(45,410)
Other (expense) income, net	(4,414)		2,131		(6,356)		143,907
Consolidated income before income taxes	$	291,755	$	206,452	$	564,211	$	557,527

For the quarter ended June 30, 2021, the Company posted record sales, operating income, backlog, and orders as well as strong operating cash flow. The Company achieved these results from organic sales growth in both EIG and EMG, contributions from the 2021 acquisitions of Abaco Systems, Inc., Magnetrol International, NSI-MI Technologies, Crank Software, and EGS Automation, as well as our Operational Excellence initiatives.

The full year impact of the 2021 acquisitions, continued economic recovery, and benefits from its Operational Excellence initiatives are expected to have a positive impact on the remainder of the Company's 2021 results. While the ultimate duration and impact of the COVID-19 pandemic is unknown, the Company will continue to monitor and address the challenges of the pandemic throughout the remainder of the year.

Impact of COVID-19 Pandemic on our Business

The COVID-19 pandemic resulted in significant global economic disruption and had an adverse impact on the Company's financial results throughout 2020. As the global economy has begun to recover, the Company eliminated certain of the temporary cost saving actions put in place in 2020, but continues to closely monitor its fixed costs, capital expenditure plans, inventory, and capital resources to respond to changing conditions and to ensure it has the resources to meet its future needs. The Company has seen sequential improvement in its financial results since the third quarter of 2020, and this trend has continued in the first six months of 2021. The recovery in customer demand has had business impacts, including increased material cost inflation, logistics challenges, and component part shortages. While the Company has not experienced significant or widespread disruption to its supply chain or distribution channels, the Company expects the impact of material cost inflation and logistics challenges to continue through the remainder of 2021 and has taken steps to mitigate such impacts.

The Company's top priority during this pandemic is the health and safety of its employees. All global manufacturing facilities remained fully operational during the second quarter and continue to operate with safety protocols in place to ensure the health and safety of its employees and communities. The Company will continue to evaluate the nature and extent of future impacts of the COVID-19 pandemic on its business. See Risk Factors, included in Part I, Item 1A of our Annual Report on Form 10-K, for further discussion of the possible impact of the COVID-19 pandemic on our business.

21

Results of operations for the second quarter of 2021 compared with the second quarter of 2020

Net sales for the second quarter of 2021 were a record $1,386.3 million, an increase of $374.4 million or 37.0%, compared with net sales of $1,011.9 million for the second quarter of 2020. The increase in net sales for the second quarter of 2021 was due to a 25% increase in organic sales, a 10% increase from acquisitions, and a favorable 2% effect of foreign currency translation.

Total international sales for the second quarter of 2021 were $665.7 million or 48.0% of net sales, an increase of $181.9 million or 37.6%, compared with international sales of $483.8 million or 47.8% of net sales for the second quarter of 2020. The increase in international sales was primarily driven by strong demand in Europe and Asia during the quarter as well as contributions from recent acquisitions.

Orders for the second quarter of 2021 were a record $1,913.7 million, an increase of $915.7 million or 91.8%, compared with $998.0 million for the second quarter of 2020. The increase in orders for the second quarter of 2021 was due to a 44% increase in organic orders, a 46% increase from acquisitions, and a favorable 2% effect of foreign currency translation. As a result, the Company's backlog of unfilled orders at June 30, 2021 was a record $2,511.5 million, an increase of $709.3 million or 39.4% compared with $1,802.2 million at December 31, 2020.

Segment operating income for the second quarter of 2021 was $339.1 million, an increase of $95.2 million or 39.0%, compared with segment operating income of $243.9 million for the second quarter of 2020. Segment operating margins, as a percentage of net sales, increased to 24.5% for the second quarter of 2021, compared with 24.1% for the second quarter of 2020.

Cost of sales for the second quarter of 2021 was $912.7 million or 65.8% of net sales, an increase of $243.5 million or 36.4%, compared with $669.2 million or 66.1% of net sales for the second quarter of 2020. The cost of sales increase was primarily due to the net sales increase discussed above.

Selling, general and administrative expenses for the second quarter of 2021 were $157.0 million or 11.3% of net sales, an increase of $41.3 million or 35.7%, compared with $115.7 million or 11.4% of net sales for the second quarter of 2020. Selling, general and administrative expenses increased primarily due to the net sales increase discussed above.

Consolidated operating income was a record $316.6 million or 22.8% of net sales for the second quarter of 2021, an increase of $89.6 million or 39.5%, compared with $227.0 million or 22.4% of net sales for the second quarter of 2020.

Other expense, net was $4.4 million for the second quarter of 2021, compared with $2.1 million of other income, net for the second quarter of 2020, a change of $6.5 million. The second quarter of 2021 includes higher acquisition-related due diligence expense compared to the second quarter of 2020.

The effective tax rate for the second quarter of 2021 was 20.6%, compared with 19.5% for the second quarter of 2020. The higher rate in 2021 primarily reflects the remeasurement of the deferred tax liabilities due to an increase in the UK tax rate.

Net income for the second quarter of 2021 was $231.7 million, an increase of $65.5 million or 39.4%, compared with $166.2 million for the second quarter of 2020.

Diluted earnings per share for the second quarter of 2021 were $1.00, an increase of $0.28 or 38.9%, compared with $0.72 per diluted share for the second quarter of 2020.

Segment Results

EIG’s net sales totaled a record $933.9 million for the second quarter of 2021, an increase of $286.0 million or 44.2%, compared with $647.9 million for the second quarter of 2020. The net sales increase was due to a 27% increase in organic sales, a 16% increase from acquisitions, and a favorable 1% effect of foreign currency translation.

EIG’s operating income was $226.6 million for the second quarter of 2021, an increase of $67.0 million or 42.0%, compared with $159.6 million for the second quarter of 2020. EIG's operating income increased primarily due to the sales increase discussed above. EIG’s operating margins were 24.3% of net sales for the second quarter of 2021, compared with 24.6% for the second quarter of 2020. The 2021 acquisitions of Abaco, Magnetrol, NSI-MI, and Crank Software diluted operating margins by 200 basis points.

22

EMG’s net sales totaled $452.4 million for the second quarter of 2021, an increase of $88.4 million or 24.3%, compared with $364.0 million for the second quarter of 2020. The net sales increase was due to a 21% organic sales increase, as well as a favorable 3% effect of foreign currency translation.

EMG’s operating income was a record $112.4 million for the second quarter of 2021, an increase of $28.1 million or 33.4%, compared with $84.3 million for the second quarter of 2020. EMG's operating income increased primarily due to the increase in sales discussed above. EMG’s operating margins were a record 24.9% of net sales for the second quarter of 2021, compared with 23.2% for the second quarter of 2020.

Results of operations for the first six months of 2021 compared with the first six months of 2020

Net sales for the first six months of 2021 were $2,602.1 million, an increase of $388.0 million or 17.5%, compared with net sales of $2,214.1 million for the first six months of 2020. The increase in net sales for the first six months of 2021 was due to a 12% organic sales increase, a 4% increase from acquisitions as well as a favorable 2% effect of foreign currency translation.

Total international sales for the first six months of 2021 were $1,282.1 million or 49.3% of net sales, an increase of $237.3 million or 22.7%, compared with international sales of $1,044.8 million or 47.2% of net sales for the first six months of 2020. The increase in international sales was primarily driven by strong demand in Europe and Asia.

Orders for the first six months of 2021 were $3,311.4 million, an increase of $1,103.4 million or 50.0%, compared with $2,208.0 million for the first six months of 2020. The increase in orders for the first six months of 2021 was due to a 25% organic order increase, a favorable 2% effect of foreign currency translation, and a 23% increase from acquisitions.

Segment operating income for the first six months of 2021 was $651.0 million, an increase of $159.3 million or 32.4%, compared with segment operating income of $491.7 million for the first six months of 2020. Segment operating margins, as a percentage of net sales, increased to 25.0% for the first six months of 2021, compared with 22.2% for the first six months of 2020. The Company recorded realignment costs of $43.7 million in the first quarter of 2020 in response to the impact of a weak global economy as a result of the COVID-19 pandemic. The 2020 realignment costs were composed of $35.3 million in severance costs for a reduction in workforce and $8.4 million of asset write-downs, primarily inventory, which decreased margins by 200 basis points for the first six months of 2020. Segment operating income and segment operating margins for the first six months of 2021 were positively impacted by the increase in net sales discussed above as well as the benefits of the Company's Operational Excellence initiatives, including the 2020 realignment actions.

Cost of sales for the first six months of 2021 was $1,702.1 million or 65.4% of net sales, an increase of $208.3 million or 13.9%, compared with $1,493.8 million or 67.5% of net sales for the first six months of 2020. The cost of sales increase was primarily due to the net sales increase discussed above. The first six months of 2020 included the realignment costs discussed above.

Selling, general and administrative expenses for the first six months of 2021 were $290.0 million or 11.1% of net sales, an increase of $28.7 million or 11.0%, compared with $261.3 million or 11.8% of net sales for the first six months of 2020. Selling, general and administrative expenses increased primarily due to the increase in net sales discussed above.

Consolidated operating income was $610.0 million or 23.4% of net sales for the first six months of 2021, an increase of $151.0 million or 32.9%, compared with $459.0 million or 20.7% of net sales for the first six months of 2020. The consolidated operating income and operating income margins for the first six months of 2021 were positively impacted by the increase in net sales discussed above as well as the benefits of the Company's Operational Excellence initiatives. The first six months of 2020 included the realignment costs discussed above, which negatively impacted consolidated operating margins by 200 basis points.

Other expense, net was $6.4 million for the first six months of 2021, compared with $143.9 million of other income, net for the first six months of 2020, a change of $150.3 million. In March 2020, the Company completed the sale of its Reading Alloys business ("Reading") to Kymera International for net proceeds of $245.3 million in cash. The sale resulted in a pre-tax gain of $141.0 million recorded in other income, net in the first quarter of 2020. The first six months of 2021 also includes higher acquisition-related due diligence expense compared to the first six months of 2020.

The effective tax rate for the first six months of 2021 was 20.1%, compared with 19.9% for the first six months of 2020. The higher effective tax rate in 2021 is primarily due to the remeasurement of the deferred tax liabilities due to an

23

increase in the UK tax rate in 2021 offset by higher reported taxes in 2020 due to the gain on the sale of the Reading Alloys business in Q1 2020 which resulted in an additional $31.4 million of income tax expense at an effective tax rate of 22.3%.

Net income for the first six months of 2021 was $450.9 million, an increase of $4.1 million or 0.9%, compared with $446.8 million for the first six months of 2020.

Diluted earnings per share for the first six months of 2021 and 2020 were flat at $1.94. In the first six months of 2020, diluted earnings per share included $0.47 for the net gain on the sale of Reading and $0.15 for the net realignment costs.

Segment Results

EIG’s net sales totaled $1,724.9 million for the first six months of 2021, an increase of $302.8 million or 21.3%, compared with $1,422.1 million for the first six months of 2020. The net sales increase was due to a 12% organic sales increase, a 7% increase from acquisitions, and a favorable 2% effect of foreign currency translation.

EIG’s operating income was $433.5 million for the first six months of 2021, an increase of $102.6 million or 31.0%, compared with $330.9 million for the first six months of 2020. EIG’s operating margins were 25.1% of net sales for the first six months of 2021, compared with 23.3% for the first six months of 2020. EIG's operating income and operating margins in the first six months of 2021 were positively impacted by the sales increase discussed above as well as the Company's Operational Excellence initiatives. EIG’s operating margins were negatively impacted in the first six months of 2020 by 160 basis points due to the 2020 realignment costs discussed above.

EMG’s net sales totaled $877.2 million for the first six months of 2021, an increase of $85.2 million or 10.8%, compared with $792.0 million for the first six months of 2020. The net sales increase was due to an 11% organic sales increase, a favorable 3% effect of foreign currency translation, partially offset by an unfavorable 3% impact from the Reading divestiture.

EMG’s operating income was $217.5 million for the first six months of 2021, an increase of $56.6 million or 35.2%, compared with $160.9 million for the first six months of 2020. EMG’s operating margins were 24.8% of net sales for the first six months of 2021, compared with 20.3% for the first six months of 2020. EMG's operating income and operating margins in the first six months of 2021 were positively impacted by the sales increase discussed above as well as the Company's Operational Excellence initiatives. EMG’s operating margins were negatively impacted in the first six months of 2020 by 260 basis points due to the 2020 realignment costs discussed above.

Financial Condition

Liquidity and Capital Resources

Cash provided by operating activities totaled $571.4 million for the first six months of 2021, a decrease of $14.0 million or 2.4%, compared with $585.4 million for the first six months of 2020. The decrease in cash provided by operating activities for the first six months of 2021 was primarily due to higher working capital requirements, partially offset by higher net income, net of the gain on the sale of the Reading business in 2020.

Free cash flow (cash flow provided by operating activities less capital expenditures) was $530.4 million for the first six months of 2021, compared with $558.4 million for the first six months of 2020. EBITDA (earnings before interest, income taxes, depreciation and amortization) was $742.5 million for the first six months of 2021, compared with $728.9 million for the first six months of 2020, which included the gain on the sale of the Reading business. Free cash flow and EBITDA are presented because the Company is aware that they are measures used by third parties in evaluating the Company.

Cash used by investing activities totaled $1,882.1 million for the first six months of 2021, compared with cash provided by investing activities of $104.8 million for the first six months of 2020. For the first six months of 2021, the Company paid $1,840.8 million, net of cash acquired, to purchase Abaco Systems, Magnetrol International, NSI-MI Technologies, Crank Software, and EGS Automation compared to $116.5 million, net of cash acquired, to purchase IntelliPower in the first six months of 2020. For the first six months of 2020, the Company received proceeds of $245.3 million from the sale of its Reading business. Additions to property, plant and equipment totaled $41.0 million for the first six months of 2021, compared with $27.0 million for the first six months of 2020.

Cash provided by financing activities totaled $491.6 million for the first six months of 2021, compared with cash provided by financing activities of $56.4 million for the first six months of 2020. At June 30, 2021, total debt, net was $2,962.1 million, compared with $2,413.7 million at December 31, 2020. For the first six months of 2021, total borrowings

24

increased by $569.9 million, driven by the 2021 acquisitions, compared with a $125.2 million increase for the first six months of 2020. At June 30, 2021, the Company had available borrowing capacity of $2,123.7 million under its revolving credit facility and $800 million term loan, including the $500 million accordion feature.

On April 26, 2021, the Company along with certain of its foreign subsidiaries amended and restated its credit agreement dated as of September 22, 2011, as amended and restated as of March 10, 2016 and as further amended and restated as of October 30, 2018, with the lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., PNC Bank, National Association, Truist Bank and Wells Fargo Bank, National Association, as Co-Syndication Agents. The credit agreement amends and restates the Company’s existing revolving credit facility to add a new five-year, delayed draw, term loan for up to $800 million. The credit agreement places certain restrictions on allowable additional indebtedness. At June 30, 2021, the Company had $150.0 million outstanding on the term loan.

The debt-to-capital ratio was 31.8% at June 30, 2021, compared with 28.9% at December 31, 2020. The net debt-to-capital ratio (total debt, net less cash and cash equivalents divided by the sum of net debt and stockholders’ equity) was 28.8% at June 30, 2021, compared with 16.8% at December 31, 2020. The net debt-to-capital ratio is presented because the Company is aware that this measure is used by third parties in evaluating the Company.

Additional financing activities for the first six months of 2021 included cash dividends paid of $92.2 million, compared with $82.4 million for the first six months of 2020. Effective February 11, 2021, the Company’s Board of Directors approved an 11% increase in the quarterly cash dividend on the Company’s common stock to $0.20 per common share from $0.18 per common share. Proceeds from stock option exercises were $31.1 million for the first six months of 2021, compared with $20.7 million for the first six months of 2020.

As a result of all of the Company’s cash flow activities for the first six months of 2021, cash and cash equivalents at June 30, 2021 totaled $390.6 million, compared with $1,212.8 million at December 31, 2020. At June 30, 2021, the Company had $318.7 million in cash outside the United States, compared with $344.0 million at December 31, 2020. The Company utilizes this cash to fund its international operations, as well as to acquire international businesses. The Company is in compliance with all covenants, including financial covenants, for all of its debt agreements. The Company believes it has sufficient cash-generating capabilities from domestic and unrestricted foreign sources, available credit facilities and access to long-term capital funds to enable it to meet its operating needs and contractual obligations in the foreseeable future.

Critical Accounting Policies

The Company’s critical accounting policies are detailed in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition of its Annual Report on Form 10-K for the year ended December 31, 2020. Primary disclosure of the Company’s significant accounting policies is also included in Note 1 to the Consolidated Financial Statements included in Part II, Item 8 of its Annual Report on Form 10-K.

Forward-Looking Information

Information contained in this discussion, other than historical information, is considered “forward-looking statements” and is subject to various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors and uncertainties include risks related to the COVID-19 pandemic and its potential impact on AMETEK’s operations, supply chain, and demand across key end markets; general economic conditions affecting the industries the Company serves; changes in the competitive environment or the effects of competition in the Company’s markets; risks associated with international sales and operations; the Company’s ability to consummate and successfully integrate future acquisitions; the Company’s ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; and the ability to maintain adequate liquidity and financing sources. A detailed discussion of these and other factors that may affect the Company’s future results is contained in AMETEK’s filings with the U.S. Securities and Exchange Commission, including its most recent reports on Form 10-K,10-Q and 8-K.AMETEK disclaims any intention or obligation to update or revise any forward-looking statements, unless required by the securities laws to do so.

Item 4. Controls and Procedures

The Company maintains a system of disclosure controls and procedures that is designed to provide reasonable assurance that information, which is required to be disclosed, is accumulated and communicated to management in a timely manner. Under the supervision and with the participation of our management, including the Company’s principal executive officer and principal financial officer, we have evaluated the effectiveness of our system of disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of June 30, 2021. Based on that evaluation, the Company’s principal executive officer and

25

principal financial officer concluded that the Company’s disclosure controls and procedures are effective at the reasonable assurance level.

Such evaluation did not identify any change in the Company’s internal control over financial reporting during the quarter ended June 30, 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

26

PART II. OTHER INFORMATION

Item 1A.    Risk Factors

A disruption in, shortage of, or price increases for, supply of our components and raw materials may adversely impact our operations.

While we manufacture certain parts and components used in our products, we require substantial amounts of raw materials and purchase some parts and components, including semiconductor chips and other electronic components, from suppliers. The availability and prices for raw materials, parts and components may be subject to curtailment or change due to, among other things, supplier’s allocation to other purchasers, interruptions in production by suppliers, changes in exchange rates and prevailing price levels. In addition, our facilities, supply chains, distribution systems, and products may be impacted by natural or man-made disruptions, including armed conflict, damaging weather or other acts of nature, pandemics or other public health crises. A shutdown of, or inability to utilize, one or more of our facilities, our supply chain, or our distribution system could significantly disrupt our operations, delay production and shipments, damage our relationships and reputation with customers, suppliers, employees, stockholders and others, result in lost sales, result in the misappropriation or corruption of data, or result in legal exposure and large remediation or other expenses. Furthermore, certain items, including base metals and certain steel components, are available only from a limited number of suppliers and are subject to commodity market fluctuations. Shortages in raw materials or price increases therefore could affect the prices we charge, our operating costs and our competitive position, which could adversely affect our business, financial condition, results of operations and cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Purchase of equity securities by the issuer and affiliated purchasers.

The following table reflects purchases of AMETEK, Inc. common stock by the Company during the three months ended June 30, 2021:

Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan
April 1, 2021 to April 30, 2021	503	$	131.29	503	$	476,377,916
May 1, 2021 to May 31, 2021	35,123	137.09		35,123	471,563,018
June 1, 2021 to June 30, 2021	—	—		—	471,563,018
Total	35,626	$	137.00	35,626

________________

(1)    Represents shares surrendered to the Company to satisfy tax withholding obligations in connection with employees’ share-based compensation awards.

27

Item 6. Exhibits

Exhibit Number	Description
31.1*	Certification of Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer, Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer, Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

________________

*    Filed electronically herewith.

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		AMETEK, Inc.
		(Registrant)
	By:	/s/ THOMAS M. MONTGOMERY
		Thomas M. Montgomery
		Senior Vice President – Comptroller
		(Principal Accounting Officer)
August 3, 2021

29

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, David A. Zapico, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of AMETEK, Inc. (the “registrant”);

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

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

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

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

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

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

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

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

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

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

Date: August 3, 2021

/s/ DAVID A. ZAPICO

David A. Zapico

Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, William J. Burke, certify that:

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

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

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

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

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

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

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

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

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

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

Date: August 3, 2021

/s/ WILLIAM J. BURKE

William J. Burke

Executive Vice President – Chief Financial Officer

EX-32.1

Exhibit 32.1

AMETEK, Inc.

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of AMETEK, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David A. Zapico, Chairman of the Board and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

/s/ DAVID A. ZAPICO

David A. Zapico

Chairman of the Board and Chief Executive Officer

Date: August 3, 2021

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

EX-32.2

Exhibit 32.2

AMETEK, Inc.

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of AMETEK, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William J. Burke, Executive Vice President – Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

/s/ WILLIAM J. BURKE

William J. Burke

Executive Vice President – Chief Financial Officer

Date: August 3, 2021

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

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Cover [Abstract]
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001037868
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	1-12981
Entity Registrant Name	AMETEK, Inc.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1100 Cassatt Road
Entity Address, City or Town	Berwyn
Entity Address, State or Province	PA
Entity Tax Identification Number	14-1682544
Entity Address, Postal Zip Code	19312-1177
City Area Code	610
Local Phone Number	647-2121
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	AME
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		231,205,619

XML

Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net sales	$ 1,386,346	$ 1,011,922	$ 2,602,088	$ 2,214,140
Cost of sales	912,712	669,195	1,702,104	1,493,842
Selling, general and administrative	157,023	115,737	290,028	261,268
Total operating expenses	1,069,735	784,932	1,992,132	1,755,110
Operating income	316,611	226,990	609,956	459,030
Interest expense	(20,442)	(22,669)	(39,389)	(45,410)
Other (expense) income, net	(4,414)	2,131	(6,356)	143,907
Income before income taxes	291,755	206,452	564,211	557,527
Provision for income taxes	60,076	40,235	113,299	110,694
Net income	$ 231,679	$ 166,217	$ 450,912	$ 446,833
Basic earnings per share (in usd per share)	$ 1.00	$ 0.73	$ 1.96	$ 1.95
Diluted earnings per share (in usd per share)	$ 1.00	$ 0.72	$ 1.94	$ 1.94
Weighted average common shares outstanding:
Basic shares	230,828	229,225	230,632	229,094
Diluted shares	232,841	230,381	232,569	230,626
Dividends declared and paid per share (in usd per shares)	$ 0.20	$ 0.18	$ 0.40	$ 0.36

XML

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Total comprehensive income	$ 237,673	$ 183,178	$ 448,499	$ 421,195

XML

Consolidated Balance Sheet - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 390,644	$ 1,212,822
Receivables, net	754,045	597,472
Inventories, net	711,620	559,171
Other current assets	185,772	153,005
Total current assets	2,042,081	2,522,470
Property, plant and equipment, net	598,827	526,530
Right of use assets, net	178,698	167,233
Goodwill	5,139,807	4,224,906
Other intangibles, net	3,473,694	2,623,719
Investments and other assets	322,157	292,625
Total assets	11,755,264	10,357,483
Current liabilities:
Short-term borrowings and current portion of long-term debt, net	699,996	132,284
Accounts payable	446,532	360,370
Customer advanced payments	294,073	194,633
Income taxes payable	24,380	38,896
Accrued liabilities and other	392,648	349,732
Total current liabilities	1,857,629	1,075,915
Long-term debt, net	2,262,100	2,281,441
Deferred income taxes	730,116	533,478
Other long-term liabilities	562,120	517,303
Total liabilities	5,411,965	4,408,137
Stockholders’ equity:
Common stock	2,684	2,676
Capital in excess of par value	964,791	921,752
Retained earnings	7,453,401	7,094,656
Accumulated other comprehensive loss	(506,881)	(504,468)
Treasury stock	(1,570,696)	(1,565,270)
Total stockholders’ equity	6,343,299	5,949,346
Total liabilities and stockholders’ equity	$ 11,755,264	$ 10,357,483

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Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Capital stock	Capital in excess of par value	Retained earnings	Retained earnings Revision of Prior Period, Accounting Standards Update, Adjustment	Accumulated foreign currency adjustment attributable to parent	Accumulated defined benefit plans adjustment attributable to parent	Accumulated other comprehensive (loss) income	Treasury stock
Balance at the beginning of the year at Dec. 31, 2019		$ 2,662	$ 832,821	$ 6,387,612	$ (360)	$ (286,248)	$ (246,891)		$ (1,574,464)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued		6
Issuance of common stock under employee stock plans			8,897						9,052
Share-based compensation expense			19,053
Net income	$ 446,833			446,833
Cash dividends paid				(82,399)
Translation adjustments						(49,025)
Change in long-term intercompany notes						(1,024)
Net investment hedge instruments (loss) gain, net of tax of $1,459 and $2,339 for the quarter ended June 30, 2021 and 2020, and $(4,479) and $(6,778) for the six months ended June 30, 2021 and 2020, respectively						21,045
Amortization of net actuarial loss and other, net of tax of $(527) and $(531) for the quarter ended June 30, 2021 and 2020, and $(1,054) and $(1,062) for the six months ended June 30, 2021 and 2020, respectively							3,366
Purchase of treasury stock									(4,496)
Balance at the end of the year at Jun. 30, 2020	5,486,440	2,668	860,771	6,751,686		(315,252)	(243,525)	$ (558,777)	(1,569,908)
Balance at the beginning of the year at Mar. 31, 2020		2,664	837,755	6,626,703		(330,530)	(245,208)		(1,565,381)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued		4
Issuance of common stock under employee stock plans			11,811						(132)
Share-based compensation expense			11,205
Net income	166,217			166,217
Cash dividends paid				(41,234)
Translation adjustments						18,064
Change in long-term intercompany notes						4,477
Net investment hedge instruments (loss) gain, net of tax of $1,459 and $2,339 for the quarter ended June 30, 2021 and 2020, and $(4,479) and $(6,778) for the six months ended June 30, 2021 and 2020, respectively						(7,263)
Amortization of net actuarial loss and other, net of tax of $(527) and $(531) for the quarter ended June 30, 2021 and 2020, and $(1,054) and $(1,062) for the six months ended June 30, 2021 and 2020, respectively							1,683
Purchase of treasury stock									(4,395)
Balance at the end of the year at Jun. 30, 2020	5,486,440	2,668	860,771	6,751,686		(315,252)	(243,525)	(558,777)	(1,569,908)
Balance at the beginning of the year at Dec. 31, 2020	5,949,346	2,676	921,752	7,094,656		(250,748)	(253,720)		(1,565,270)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued		8
Issuance of common stock under employee stock plans			19,446						7,452
Share-based compensation expense			23,593
Net income	450,912			450,912
Cash dividends paid				(92,167)
Translation adjustments						(13,953)
Change in long-term intercompany notes						(5,566)
Net investment hedge instruments (loss) gain, net of tax of $1,459 and $2,339 for the quarter ended June 30, 2021 and 2020, and $(4,479) and $(6,778) for the six months ended June 30, 2021 and 2020, respectively						13,846
Amortization of net actuarial loss and other, net of tax of $(527) and $(531) for the quarter ended June 30, 2021 and 2020, and $(1,054) and $(1,062) for the six months ended June 30, 2021 and 2020, respectively							3,260
Purchase of treasury stock									(12,878)
Balance at the end of the year at Jun. 30, 2021	6,343,299	2,684	964,791	7,453,401		(256,421)	(250,460)	(506,881)	(1,570,696)
Balance at the beginning of the year at Mar. 31, 2021		2,678	928,412	7,267,856		(260,785)	(252,090)		(1,565,323)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued		6
Issuance of common stock under employee stock plans			24,226						(492)
Share-based compensation expense			12,153
Net income	231,679			231,679
Cash dividends paid				(46,134)
Translation adjustments						7,547
Change in long-term intercompany notes						1,329
Net investment hedge instruments (loss) gain, net of tax of $1,459 and $2,339 for the quarter ended June 30, 2021 and 2020, and $(4,479) and $(6,778) for the six months ended June 30, 2021 and 2020, respectively						(4,512)
Amortization of net actuarial loss and other, net of tax of $(527) and $(531) for the quarter ended June 30, 2021 and 2020, and $(1,054) and $(1,062) for the six months ended June 30, 2021 and 2020, respectively							1,630
Purchase of treasury stock									(4,881)
Balance at the end of the year at Jun. 30, 2021	$ 6,343,299	$ 2,684	$ 964,791	$ 7,453,401		$ (256,421)	$ (250,460)	$ (506,881)	$ (1,570,696)

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Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Accounting standards update				us-gaap:AccountingStandardsUpdate201613Member
Tax related to investment hedge instruments gain (loss)	$ 1,459	$ 2,339	$ (4,479)	$ (6,778)
Tax related to amortization of net actuarial loss (gain)	$ (527)	$ (531)	$ (1,054)	$ (1,062)

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Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net income	$ 450,912	$ 446,833
Adjustments to reconcile net income to total operating activities:
Depreciation and amortization	139,814	127,404
Deferred income taxes	27,482	(2,976)
Share-based compensation expense	23,593	19,053
Gain on sale of business	0	(141,020)
Gain on sale of facilities	0	(4,592)
Net change in assets and liabilities, net of acquisitions	(58,497)	145,473
Pension contributions	(4,094)	(3,209)
Other, net	(7,767)	(1,598)
Total operating activities	571,443	585,368
Investing activities:
Additions to property, plant and equipment	(41,005)	(27,017)
Purchases of businesses, net of cash acquired	(1,840,845)	(116,509)
Proceeds from sale of business	0	245,311
Proceeds from sale of facilities	0	5,463
Other, net	(292)	(2,457)
Total investing activities	(1,882,142)	104,791
Financing activities:
Net change in short-term borrowings	569,949	(374,771)
Proceeds from long-term borrowings	0	500,000
Repurchases of common stock	(12,878)	(4,496)
Cash dividends paid	(92,167)	(82,399)
Proceeds from stock option exercises	31,112	20,676
Other, net	(4,420)	(2,614)
Total financing activities	491,596	56,396
Effect of exchange rate changes on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents	(3,075)	(8,610)
(Decrease) Increase in cash and cash equivalents	(822,178)	737,945
Cash and cash equivalents:
Beginning of period	1,212,822	393,030
End of period	$ 390,644	$ 1,130,975

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Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe 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, 2021, the consolidated results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020 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, 2020 as filed with the U.S. Securities and Exchange Commission.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740. The Company prospectively adopted ASU 2019-12, effective January 1, 2021, and the adoption did not have a significant impact on the Company’s consolidated results of operations, financial position, cash flows and financial statement disclosures.

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Revenues

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

The outstanding contract asset and liability accounts were as follows:

	2021		2020
	(In thousands)
Contract assets—January 1	$	68,971	$	73,039
Contract assets – June 30	73,853		67,804
Change in contract assets – increase (decrease)	4,882		(5,235)
Contract liabilities – January 1	215,093		167,306
Contract liabilities – June 30	333,409		199,967
Change in contract liabilities – increase	(118,316)		(32,661)
Net change	$	(113,434)	$	(37,896)

The net change for the six months ended June 30, 2021 was primarily driven by contract liabilities from the 2021 acquisitions' advance payments from customers. For the six months ended June 30, 2021 and 2020, the Company recognized revenue of $145.2 million and $105.3 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, 2021 and December 31, 2020, $39.4 million and $20.5 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.

The remaining performance obligations exceeding one year as of June 30, 2021 and December 31, 2020 were $422.3 million and $300.8 million, respectively. The increase was primarily driven by the 2021 acquisitions. Remaining performance obligations represent the transaction price of firm, non-cancelable 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

Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the three and six months ended June 30:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	495,039	$	225,912	$	720,951	$	883,940	$	436,094	$	1,320,034
International(1):
United Kingdom	20,649		28,568		49,217		42,596		58,619		101,215
European Union countries	117,856		103,604		221,460		221,521		198,901		420,422
Asia	217,854		65,449		283,303		415,415		126,643		542,058
Other foreign countries	82,536		28,879		111,415		161,386		56,973		218,359
Total international	438,895		226,500		665,395		840,918		441,136		1,282,054
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

________________

(1)    Includes U.S. export sales of $365.5 million and $696.4 million for the three and six months ended June 30, 2021, respectively.

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	338,757	$	189,369	$	528,126	$	745,302	$	424,058	$	1,169,360
International(1):
United Kingdom	13,427		22,752		36,179		28,220		55,890		84,110
European Union countries	79,901		79,327		159,228		185,577		168,093		353,670
Asia	161,190		47,536		208,726		325,935		91,366		417,301
Other foreign countries	54,607		25,056		79,663		137,073		52,626		189,699
Total international	309,125		174,671		483,796		676,805		367,975		1,044,780
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

______________

(1)    Includes U.S. export sales of $257.9 million and $563.1 million for the three and six months ended June 30, 2020, respectively.

Major Products and Services

The Company’s major products and services in the reportable segments were as follows:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	644,121	$	—	$	644,121	$	1,220,680	$	—	$	1,220,680
Aerospace and power	289,813		126,466		416,279		504,178		248,639		752,817
Automation and engineered solutions	—		325,946		325,946		—		628,591		628,591
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	483,540	$	—	$	483,540	$	1,031,980	$	—	$	1,031,980
Aerospace and power	164,342		104,133		268,475		390,127		231,384		621,511
Automation and engineered solutions	—		259,907		259,907		—		560,649		560,649
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

Timing of Revenue Recognition

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	767,514	$	408,569	$	1,176,083	$	1,414,766	$	791,600	$	2,206,366
Products and services transferred over time	166,420		43,843		210,263		310,092		85,630		395,722
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	525,168	$	324,502	$	849,670	$	1,158,708	$	703,561	$	1,862,269
Products and services transferred over time	122,714		39,538		162,252		263,399		88,472		351,871
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

Product Warranties

The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities and other in the consolidated balance sheet.

Changes in the accrued product warranty obligation were as follows:

	Six Months Ended June 30,
	2021		2020
	(In thousands)
Balance at the beginning of the period	$	27,839	$	27,611
Accruals for warranties issued during the period	5,964		6,874
Settlements made during the period	(6,620)		(7,605)
Warranty accruals related to acquired businesses and other during the period	2,169		326
Balance at the end of the period	$	29,352	$	27,206

Accounts Receivable

The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.

At June 30, 2021, the Company had $754.0 million of accounts receivable, net of allowances of $12.1 million. Changes in the allowance were not material for the three and six months ended June 30, 2021.

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Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The calculation of basic earnings per share is based on the weighted average number of common shares considered outstanding during the periods. The calculation of diluted earnings per share reflects the effect of all potentially dilutive securities (principally outstanding stock options and restricted stock grants). Securities that are anti-dilutive have been excluded and are not significant. The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
	(In thousands)
Weighted average shares:
Basic shares	230,828	229,225	230,632	229,094
Equity-based compensation plans	2,013	1,156	1,937	1,532
Diluted shares	232,841	230,381	232,569	230,626

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company utilizes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following table provides the Company’s assets that are measured at fair value on a recurring basis, consistent with the fair value hierarchy, at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
	Fair Value		Fair Value
	(In thousands)
Mutual fund investments	$	10,085	$	8,969

The fair value of mutual fund investments, which are valued as level 1 investments, was based on quoted market prices. The mutual fund investments are shown as a component of investments and other assets on the consolidated balance sheet.

For the six months ended June 30, 2021 and 2020, gains and losses on the investments noted above were not significant. No transfers between level 1 and level 2 investments occurred during the six months ended June 30, 2021 and 2020.

Financial Instruments

Cash, cash equivalents and mutual fund investments are recorded at fair value at June 30, 2021 and December 31, 2020 in the accompanying consolidated balance sheet.

The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at June 30, 2021 and December 31, 2020:

	June 30, 2021				December 31, 2020
	Recorded Amount		Fair Value		Recorded Amount		Fair Value
	(In thousands)
Long-term debt, net (including current portion)	$	(2,326,547)	$	(2,485,398)	$	(2,347,587)	$	(2,550,956)

The fair value of net short-term borrowings approximates the carrying value. Net short-term borrowings are valued as level 2 liabilities as they are corroborated by observable market data. The Company’s net long-term debt is all privately held with no public market for this debt, therefore, the fair value of net long-term debt was computed based on comparable current market data for similar debt instruments and is considered a level 3 liability.

Foreign Currency

At June 30, 2020, the Company had a Canadian dollar forward contract for a total notional value of 24.0 million Canadian dollars and four British pound forward contracts for a total notional value of 40.0 million British pounds. For the six months ended June 30, 2020, realized and unrealized gains and losses on foreign currency forward contracts were not significant. The Company does not typically designate its foreign currency forward contracts as hedges.

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Hedging Activities

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Activities

Hedging Activities

The Company has designated certain foreign-currency-denominated long-term borrowings as hedges of the net investment in certain foreign operations. As of June 30, 2021, these net investment hedges included British-pound-and Euro-denominated long-term debt. These borrowings were designed to create net investment hedges in certain designated foreign subsidiaries. The Company designated the British-pound- and Euro-denominated loans referred to above as hedging instruments to offset translation gains or losses on the net investment due to changes in the British pound and Euro exchange rates. These net investment hedges are evidenced by management’s contemporaneous documentation supporting the hedge designation. Any gain or loss on the hedging instruments (the debt) following hedge designation is reported in accumulated other comprehensive income in the same manner as the translation adjustment on the hedged investment based on changes in the spot rate, which is used to measure hedge effectiveness.

At June 30, 2021, the Company had $310.7 million of British-pound-denominated loans, which were designated as a hedge against the net investment in British pound functional currency foreign subsidiaries. At June 30, 2021, the Company had $681.4 million in Euro-denominated loans, which were designated as a hedge against the net investment in Euro functional currency foreign subsidiaries. As a result of the British-pound- and Euro-denominated loans designated and 100% effective as net investment hedges, $18.3 million of pre-tax currency remeasurement gains have been included in the foreign currency translation component of other comprehensive income for the six months ended June 30, 2021.

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Inventories, net

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net

	June 30, 2021		December 31, 2020
	(In thousands)
Finished goods and parts	$	97,921	$	81,619
Work in process	138,949		102,945
Raw materials and purchased parts	474,750		374,607
Total inventories, net	$	711,620	$	559,171

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the six months ended June 30, 2021 and June 30, 2020. The Company's leases have initial lease terms ranging from one month to 14 years. Certain lease agreements contain provisions for future rent increases.

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	12,006	$	10,284	$	23,523	$	20,989
Variable lease cost	1,402		976		2,872		2,090
Total lease cost	$	13,408	$	11,260	$	26,395	$	23,079

Supplemental balance sheet information related to leases was as follows:

	June 30, 2021		December 31, 2020
	(In thousands)
Right of use assets, net	$	178,698	$	167,233
Lease liabilities included in Accrued Liabilities and other	48,159		44,948
Lease liabilities included in Other long-term liabilities	135,930		128,173
Total lease liabilities	$	184,089	$	173,121

Maturities of lease liabilities as of June 30, 2021 were as follows:

Lease Liability Maturity Analysis	Operating Leases
	(In thousands)
Remaining 2021	$	26,820
2022	47,870
2023	38,592
2024	26,227
2025	19,084
Thereafter	35,419
Total lease payments	194,012
Less: imputed interest	9,923
	$	184,089

The Company does not have any significant leases that have not yet commenced.

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Acquisitions and Divestiture

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Acquisitions and Divestiture

Acquisitions and Divestiture

Acquisitions

The Company spent $1,840.8 million in cash, net of cash acquired, to acquire Magnetrol International ("Magnetrol"), Crank Software, and EGS Automation ("EGS") in March 2021, and NSI-MI Technologies ("NSI-MI") and Abaco Systems, Inc. ("Abaco") in April 2021. Magnetrol is a leading provider of level and flow control solutions for challenging process applications across a diverse set of end markets including medical, pharmaceutical, oil and gas, food and beverage, and general industrial. Crank Software is a leading provider of embedded graphical user interface software and services. EGS is an automation solutions provider that designs and manufactures highly engineered, customized robotic solutions used in critical applications for the medical, food and beverage, and general industrial markets. NSI-MI is a leading provider of radio

frequency and microwave test and measurement systems for niche applications across the aerospace, defense, automotive, wireless communications, and research markets. Abaco specializes in open-architecture computing and electronic systems for aerospace, defense, and specialized industrial markets and is a leading provider of mission critical embedded computing systems. Magnetrol, Crank Software, NSI-MI, and Abaco are part of EIG. EGS is part of EMG.

The following table represents the allocation of the purchase price for the net assets of the acquisitions based on the estimated fair values at acquisition (in millions):

	Abaco		Other Acquisitions		Total
Property, plant and equipment	$	52.9	$	38.2	$	91.1
Goodwill	691.4		231.4		922.8
Other intangible assets	675.0		267.3		942.3
Deferred income taxes	(134.1)		(30.4)		(164.5)
Net working capital and other(1)	60.7		(11.6)		49.1
Total cash paid	$	1,345.9	$	494.9	$	1,840.8

________________

(1)Includes $66.8 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.

The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the 2021 acquisitions. Abaco's computing and electronic solutions expand and complement the Company's existing aerospace and defense businesses. NSI-MI strengthens the Company's test and measurement platform. Magnetrol's solutions combined with the Company’s existing Sensors, Test and Calibration business, becomes an industry leading differentiated sensor platform with a broad range of level and flow measurement solutions. Crank Software expands the Company's growing portfolio of software solutions. EGS complements the Company's existing Dunkermotoren business providing highly customizable engineering design and automation capabilities. The Company expects approximately $106 million of the goodwill relating to the 2021 acquisitions will be tax deductible in future years.

At June 30, 2021, the purchase price allocated to other intangible assets of $942.3 million consists of $145.3 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $797.0 million of other intangible assets consists of $632.1 million of customer relationships, which are being amortized over a period of 15 to 20 years, and $164.9 million of purchased technology, which is being amortized over a period of 11 to 20 years. Amortization expense for each of the next five years for the 2021 acquisitions is expected to approximate $47 million per year.

The Company is in the process of finalizing the measurement of certain tangible and intangible assets and liabilities for its 2021 acquisitions including inventory, property, plant and equipment, goodwill, trade names, customer relationships and purchased technology, and the accounting for income taxes.

The acquisitions had an immaterial impact on reported net income and diluted earnings per share for the three and six months ended June 30, 2021. Had the acquisitions been made at the beginning of 2021 or 2020, pro forma net income and diluted earnings per share for the three and six months ended June 30, 2021 and 2020, would not have been materially different than the amounts reported. Pro forma net sales would not have been materially different than the amounts reported for the three and six months ended June 30, 2021 and would have been approximately 10% higher than the reported amounts for the three and six months ended June 30, 2020.

Divestiture

The Company completed its sale of Reading Alloys to Kymera International in March 2020 for net cash proceeds of $245.3 million. The sale resulted in a pretax gain of $141.0 million, recorded in Other income, net in the Consolidated Statement of Income, and income tax expense of approximately $31.4 million in connection with the sale. Reading Alloys revenue and costs were reported within the EMG segment through the date of sale.

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Goodwill

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The changes in the carrying amounts of goodwill by segment were as follows:

	EIG		EMG		Total
	(In millions)
Balance at December 31, 2020	$	3,050.3	$	1,174.6	$	4,224.9
Goodwill acquired	916.9		5.9		922.8
Purchase price allocation adjustments and other	1.9		—		1.9
Foreign currency translation adjustments	(6.1)		(3.7)		(9.8)
Balance at June 30, 2021	$	3,963.0	$	1,176.8	$	5,139.8

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At June 30, 2021, the Company had gross uncertain tax benefits of $132.3 million, of which $81.4 million, if recognized, would impact the effective tax rate.

The following is a reconciliation of the liability for uncertain tax positions (in millions):

Balance at December 31, 2020	$	100.7
Additions for tax positions	32.4
Reductions for tax positions	(0.8)
Balance at June 30, 2021	$	132.3

The additions above primarily reflect the tax positions included as a component of goodwill for businesses recently acquired. The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense. The amounts recognized in income tax expense for interest and penalties during the three and six months ended June 30, 2021 and 2020 were not significant.

The effective tax rate for the three months ended June 30, 2021 was 20.6%, compared with 19.5% for the three months ended June 30, 2020.

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Debt	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt	DebtOn April 26, 2021, the Company along with certain of its foreign subsidiaries amended and restated its credit agreement dated as of September 22, 2011, as amended and restated as of March 10, 2016 and as further amended and restated as of October 30, 2018, with the lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., PNC Bank, National Association, Truist Bank and Wells Fargo Bank, National Association, as Co-Syndication Agents. The credit agreement amends and restates the Company’s existing revolving credit facility to add a new five-year, delayed draw, term loan for up to $800 million. The credit agreement places certain restrictions on allowable additional indebtedness. At June 30, 2021, the Company had $150.0 million outstanding on the term loan.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

The Company's share-based compensation plans are described in Note 11, Share-Based Compensation, to the consolidated financial statements in Part II, Item 8, filed on the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Share Based Compensation Expense

Total share-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Stock option expense	$	3,326	$	3,626	$	7,249	$	6,999
Restricted stock expense	5,690		4,586		11,917		8,128
Performance restricted stock unit expense	3,137		2,993		4,427		3,926
Total pre-tax expense	$	12,153	$	11,205	$	23,593	$	19,053

Pre-tax share-based compensation expense is included in the consolidated statement of income in either Cost of sales or Selling, general and administrative expenses, depending on where the recipient’s cash compensation is reported.

Stock Options

The fair value of each stock option grant is estimated on the grant date using a Black-Scholes-Merton option pricing model. The following weighted average assumptions were used in the Black-Scholes-Merton model to estimate the fair values of stock options granted during the periods indicated:

	Six Months Ended June 30, 2021			Year Ended December 31, 2020
Expected volatility	24.2		%	22.2		%
Expected term (years)	5.0			5.0
Risk-free interest rate	0.85		%	0.52		%
Expected dividend yield	0.66		%	1.14		%
Black-Scholes-Merton fair value per stock option granted	$	25.63		$	11.01

The following is a summary of the Company’s stock option activity and related information:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(In thousands)			(Years)	(In millions)
Outstanding at December 31, 2020	3,950	$	65.16
Granted	552	121.91
Exercised	(511)	59.57
Forfeited	(56)	80.45
Outstanding at June 30, 2021	3,935	$	73.63	6.2	$	235.6
Exercisable at June 30, 2021	2,567	$	64.78	4.8	$	176.4

The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2021 was $30.5 million. The total fair value of stock options vested during the six months ended June 30, 2021 was $13.6 million. As of June 30, 2021,

there was approximately $22.6 million of expected future pre-tax compensation expense related to the 1.4 million non-vested stock options outstanding, which is expected to be recognized over a weighted average period of approximately two years.

Restricted Stock

The following is a summary of the Company’s non-vested restricted stock activity and related information:

	Shares	Weighted Average  Grant Date Fair Value
	(In thousands)
Non-vested restricted stock outstanding at December 31, 2020	701	$	76.86
Granted	148	122.01
Vested	(347)	68.06
Forfeited	(21)	91.66
Non-vested restricted stock outstanding at June 30, 2021	481	$	96.42

The total fair value of restricted stock vested during the six months ended June 30, 2021 was $23.6 million. As of June 30, 2021, there was approximately $37.0 million of expected future pre-tax compensation expense related to the 0.5 million non-vested restricted shares outstanding, which is expected to be recognized over a weighted average period of approximately two years.

Performance Restricted Stock Units

In March 2021, the Company granted performance restricted stock units ("PRSU") to officers and certain key management-level employees. The PRSUs vest over a period up to three years from the grant date based on continuous service, with the number of shares earned (0% to 200% of the target award) depending upon the extent to which the Company achieves certain financial and market performance targets measured over the period from January 1 of the year of grant to December 31 of the third year. Half of the PRSUs were valued in a manner similar to restricted stock as the financial targets are based on the Company’s operating results, which represents a performance condition. The grant date fair value of these PRSUs are recognized as compensation expense over the vesting period based on the probable number of awards to vest at each reporting date.

The other half of the PRSUs were valued using a Monte Carlo model as the performance target is related to the Company’s total shareholder return compared to a group of peer companies, which represents a market condition. The Company recognizes the grant date fair value of these awards as compensation expense ratably over the vesting period.

The following is a summary of the Company’s non-vested performance restricted stock activity and related information:

	Shares	Weighted Average  Grant Date Fair Value
	(In thousands)
Non-vested performance restricted stock outstanding at December 31, 2020	264	$	72.90
Granted	81	121.91
Performance assumption change 1	39	78.20
Vested	(88)	78.20
Forfeited	(4)	81.76
Non-vested performance restricted stock outstanding at June 30, 2021	292	$	85.44

_________________________________________

1 Reflects the number of PRSUs above target levels based on performance metrics.

As of June 30, 2021, there was approximately $9.7 million of expected future pre-tax compensation expense related to the 0.3 million non-vested restricted shares outstanding, which is expected to be recognized over a weighted average period of less than one year.

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Retirement and Pension Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Retirement and Pension Plans

Retirement and Pension Plans

The components of net periodic pension benefit expense (income) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Defined benefit plans:
Service cost	$	2,030	$	1,929	$	4,051	$	3,879
Interest cost	4,581		5,600		9,148		11,236
Expected return on plan assets	(14,221)		(13,558)		(28,395)		(27,208)
Amortization of net actuarial loss and other	4,379		3,931		8,732		7,907
Pension income	(3,231)		(2,098)		(6,464)		(4,186)
Other plans:
Defined contribution plans	7,961		6,882		16,416		16,907
Foreign plans and other	2,123		1,832		4,357		3,873
Total other plans	10,084		8,714		20,773		20,780
Total net pension expense	$	6,853	$	6,616	$	14,309	$	16,594

For defined benefit plans, the net periodic benefit income, other than the service cost component, is included in “Other (expense) income, net” in the consolidated statement of income.

For the six months ended June 30, 2021 and 2020, contributions to the Company’s defined benefit pension plans were $4.1 million and $3.2 million, respectively. The Company’s current estimate of 2021 contributions to its worldwide defined benefit pension plans is in line with the range disclosed in Note 12 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Asbestos Litigation

The Company (including its subsidiaries) has been named as a defendant in a number of asbestos-related lawsuits. Certain of these lawsuits relate to a business which was acquired by the Company and do not involve products which were manufactured or sold by the Company. In connection with these lawsuits, the seller of such business has agreed to indemnify the Company against these claims (the “Indemnified Claims”). The Indemnified Claims have been tendered to, and are being defended by, such seller. The seller has met its obligations, in all respects, and the Company does not have any reason to believe such party would fail to fulfill its obligations in the future. To date, no judgments have been rendered against the Company as a result of any asbestos-related lawsuit. The Company believes that it has good and valid defenses to each of these claims and intends to defend them vigorously.

Environmental Matters

Certain historic processes in the manufacture of products have resulted in environmentally hazardous waste by-products as defined by federal and state laws and regulations. At June 30, 2021, the Company is named a Potentially Responsible Party (“PRP”) at 13 non-AMETEK-owned former waste disposal or treatment sites (the “non-owned” sites). The Company is identified as a “de minimis” party in 12 of these sites based on the low volume of waste attributed to the Company relative to the amounts attributed to other named PRPs. In eight of these sites, the Company has reached a tentative agreement on the cost of the de minimis settlement to satisfy its obligation and is awaiting executed agreements. The tentatively agreed-to settlement amounts are fully reserved. In the other four sites, the Company is continuing to investigate the accuracy of the alleged volume attributed to the Company as estimated by the parties primarily responsible for remedial activity at the sites to establish an appropriate settlement amount. At the remaining site where the Company is a non-de minimis PRP, the Company is participating in the investigation and/or related required remediation as part of a PRP Group and reserves have been established to satisfy the Company’s expected obligations. The Company historically has resolved these issues within established reserve levels and reasonably expects this result will continue. In addition to these non-owned sites, the Company has an ongoing practice of providing reserves for probable remediation activities at certain of its current or previously owned manufacturing locations (the “owned” sites). For claims and proceedings against the Company with respect to other environmental matters, reserves are established once the Company has determined that a loss is probable and estimable. This estimate is refined as the Company moves through the various stages of investigation, risk assessment, feasibility study and corrective action processes. In certain instances, the Company has developed a range of estimates for such costs and has recorded a liability based on the best estimate. It is reasonably possible that the actual cost of remediation of the individual sites could vary from the current estimates and the amounts accrued in the consolidated financial statements; however, the amounts of such variances are not expected to result in a material change to the consolidated financial statements. In estimating the Company’s liability for remediation, the Company also considers the likely proportionate share of the anticipated remediation expense and the ability of the other PRPs to fulfill their obligations.

Total environmental reserves at June 30, 2021 and December 31, 2020 were $33.8 million and $32.4 million, respectively, for both non-owned and owned sites. For the six months ended June 30, 2021, the Company recorded $4.5 million in reserves. Additionally, the Company spent $3.1 million on environmental matters for the six months ended June 30, 2021. The Company’s reserves for environmental liabilities at June 30, 2021 and December 31, 2020 included reserves of $6.3 million and $7.4 million, respectively, for an owned site acquired in connection with the 2005 acquisition of HCC Industries (“HCC”). The Company is the designated performing party for the performance of remedial activities for one of several operating units making up a Superfund site in the San Gabriel Valley of California. The Company has obtained indemnifications and other financial assurances from the former owners of HCC related to the costs of the required remedial activities.

The Company has agreements with other former owners of certain of its acquired businesses, as well as new owners of previously owned businesses. Under certain of the agreements, the former or new owners retained, or assumed and agreed to indemnify the Company against, certain environmental and other liabilities under certain circumstances. The Company and some of these other parties also carry insurance coverage for some environmental matters. To date, these parties have met their obligations in all material respects.

The Company believes it has established reserves for the environmental matters described above, which are sufficient to perform all known responsibilities under existing claims and consent orders. The Company has no reason to believe that other third parties would fail to perform their obligations in the future. In the opinion of management, based on presently available information and the Company’s historical experience related to such matters, an adequate provision for probable costs has been made and the ultimate cost resulting from these actions is not expected to materially affect the consolidated results of operations, financial position or cash flows of the Company.The Company has been remediating groundwater contamination for several contaminants, including trichloroethylene (“TCE”), at a formerly owned site in El Cajon, California. Several lawsuits have been filed against the Company alleging damages resulting from the groundwater contamination, including property damages and funds for medical monitoring to detect causally related personal injury, and seeking compensatory and punitive damages. While the Company believes that it has good and valid defenses to each of these claims and intends to defend them vigorously if pursued through trial, the parties agreed to terms to globally settle the cases. After extensive negotiations, the Company finalized and paid in April 2021 a global settlement of these lawsuits for an aggregate amount of $6.8 million, for which the Company had previously established reserves sufficient to cover this settlement.

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Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Changes and Error Corrections [Abstract]

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, 2021, the consolidated results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020 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, 2020 as filed with the U.S. Securities and Exchange Commission.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740. The Company prospectively adopted ASU 2019-12, effective January 1, 2021, and the adoption did not have a significant impact on the Company’s consolidated results of operations, financial position, cash flows and financial statement disclosures.

Accounts Receivable

Accounts Receivable

The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.

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Revenues (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Outstanding Contract Asset and (Liability) Accounts

The outstanding contract asset and liability accounts were as follows:

	2021		2020
	(In thousands)
Contract assets—January 1	$	68,971	$	73,039
Contract assets – June 30	73,853		67,804
Change in contract assets – increase (decrease)	4,882		(5,235)
Contract liabilities – January 1	215,093		167,306
Contract liabilities – June 30	333,409		199,967
Change in contract liabilities – increase	(118,316)		(32,661)
Net change	$	(113,434)	$	(37,896)

Schedule of Revenue From External Customers by Geographic Areas

Information about the Company’s operations in different geographic areas was as follows for the three and six months ended June 30:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	495,039	$	225,912	$	720,951	$	883,940	$	436,094	$	1,320,034
International(1):
United Kingdom	20,649		28,568		49,217		42,596		58,619		101,215
European Union countries	117,856		103,604		221,460		221,521		198,901		420,422
Asia	217,854		65,449		283,303		415,415		126,643		542,058
Other foreign countries	82,536		28,879		111,415		161,386		56,973		218,359
Total international	438,895		226,500		665,395		840,918		441,136		1,282,054
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

________________

(1)    Includes U.S. export sales of $365.5 million and $696.4 million for the three and six months ended June 30, 2021, respectively.

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	338,757	$	189,369	$	528,126	$	745,302	$	424,058	$	1,169,360
International(1):
United Kingdom	13,427		22,752		36,179		28,220		55,890		84,110
European Union countries	79,901		79,327		159,228		185,577		168,093		353,670
Asia	161,190		47,536		208,726		325,935		91,366		417,301
Other foreign countries	54,607		25,056		79,663		137,073		52,626		189,699
Total international	309,125		174,671		483,796		676,805		367,975		1,044,780
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

______________

(1)    Includes U.S. export sales of $257.9 million and $563.1 million for the three and six months ended June 30, 2020, respectively.

Schedule of Revenue From External Customers by Products and Services

The Company’s major products and services in the reportable segments were as follows:

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	644,121	$	—	$	644,121	$	1,220,680	$	—	$	1,220,680
Aerospace and power	289,813		126,466		416,279		504,178		248,639		752,817
Automation and engineered solutions	—		325,946		325,946		—		628,591		628,591
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	483,540	$	—	$	483,540	$	1,031,980	$	—	$	1,031,980
Aerospace and power	164,342		104,133		268,475		390,127		231,384		621,511
Automation and engineered solutions	—		259,907		259,907		—		560,649		560,649
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

Schedule of Disaggregation of Revenue

	Three months ended June 30, 2021						Six months ended June 30, 2021
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	767,514	$	408,569	$	1,176,083	$	1,414,766	$	791,600	$	2,206,366
Products and services transferred over time	166,420		43,843		210,263		310,092		85,630		395,722
Consolidated net sales	$	933,934	$	452,412	$	1,386,346	$	1,724,858	$	877,230	$	2,602,088

	Three months ended June 30, 2020						Six months ended June 30, 2020
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	525,168	$	324,502	$	849,670	$	1,158,708	$	703,561	$	1,862,269
Products and services transferred over time	122,714		39,538		162,252		263,399		88,472		351,871
Consolidated net sales	$	647,882	$	364,040	$	1,011,922	$	1,422,107	$	792,033	$	2,214,140

Schedule of Product Warranty Liability

Changes in the accrued product warranty obligation were as follows:

	Six Months Ended June 30,
	2021		2020
	(In thousands)
Balance at the beginning of the period	$	27,839	$	27,611
Accruals for warranties issued during the period	5,964		6,874
Settlements made during the period	(6,620)		(7,605)
Warranty accruals related to acquired businesses and other during the period	2,169		326
Balance at the end of the period	$	29,352	$	27,206

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Number of Weighted Average Shares

The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
	(In thousands)
Weighted average shares:
Basic shares	230,828	229,225	230,632	229,094
Equity-based compensation plans	2,013	1,156	1,937	1,532
Diluted shares	232,841	230,381	232,569	230,626

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following table provides the Company’s assets that are measured at fair value on a recurring basis, consistent with the fair value hierarchy, at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
	Fair Value		Fair Value
	(In thousands)
Mutual fund investments	$	10,085	$	8,969

Fair Value Disclosures of Financial Instrument Liabilities

The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at June 30, 2021 and December 31, 2020:

	June 30, 2021				December 31, 2020
	Recorded Amount		Fair Value		Recorded Amount		Fair Value
	(In thousands)
Long-term debt, net (including current portion)	$	(2,326,547)	$	(2,485,398)	$	(2,347,587)	$	(2,550,956)

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Inventories, net (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

	June 30, 2021		December 31, 2020
	(In thousands)
Finished goods and parts	$	97,921	$	81,619
Work in process	138,949		102,945
Raw materials and purchased parts	474,750		374,607
Total inventories, net	$	711,620	$	559,171

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	12,006	$	10,284	$	23,523	$	20,989
Variable lease cost	1,402		976		2,872		2,090
Total lease cost	$	13,408	$	11,260	$	26,395	$	23,079

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

	June 30, 2021		December 31, 2020
	(In thousands)
Right of use assets, net	$	178,698	$	167,233
Lease liabilities included in Accrued Liabilities and other	48,159		44,948
Lease liabilities included in Other long-term liabilities	135,930		128,173
Total lease liabilities	$	184,089	$	173,121

Maturities of Lease Liabilities

Maturities of lease liabilities as of June 30, 2021 were as follows:

Lease Liability Maturity Analysis	Operating Leases
	(In thousands)
Remaining 2021	$	26,820
2022	47,870
2023	38,592
2024	26,227
2025	19,084
Thereafter	35,419
Total lease payments	194,012
Less: imputed interest	9,923
	$	184,089

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Acquisitions and Divestiture (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Allocation of Aggregate Purchase Price of Acquired Net Assets

The following table represents the allocation of the purchase price for the net assets of the acquisitions based on the estimated fair values at acquisition (in millions):

	Abaco		Other Acquisitions		Total
Property, plant and equipment	$	52.9	$	38.2	$	91.1
Goodwill	691.4		231.4		922.8
Other intangible assets	675.0		267.3		942.3
Deferred income taxes	(134.1)		(30.4)		(164.5)
Net working capital and other(1)	60.7		(11.6)		49.1
Total cash paid	$	1,345.9	$	494.9	$	1,840.8

________________

(1)Includes $66.8 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amounts of Goodwill by Segment

The changes in the carrying amounts of goodwill by segment were as follows:

	EIG		EMG		Total
	(In millions)
Balance at December 31, 2020	$	3,050.3	$	1,174.6	$	4,224.9
Goodwill acquired	916.9		5.9		922.8
Purchase price allocation adjustments and other	1.9		—		1.9
Foreign currency translation adjustments	(6.1)		(3.7)		(9.8)
Balance at June 30, 2021	$	3,963.0	$	1,176.8	$	5,139.8

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Reconciliation of Liability for Uncertain Tax Positions

The following is a reconciliation of the liability for uncertain tax positions (in millions):

Balance at December 31, 2020	$	100.7
Additions for tax positions	32.4
Reductions for tax positions	(0.8)
Balance at June 30, 2021	$	132.3

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Total Share-Based Compensation Expense

Total share-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Stock option expense	$	3,326	$	3,626	$	7,249	$	6,999
Restricted stock expense	5,690		4,586		11,917		8,128
Performance restricted stock unit expense	3,137		2,993		4,427		3,926
Total pre-tax expense	$	12,153	$	11,205	$	23,593	$	19,053

Weighted Average Assumptions Used for Estimating Fair Values of Stock Options Granted

The following weighted average assumptions were used in the Black-Scholes-Merton model to estimate the fair values of stock options granted during the periods indicated:

	Six Months Ended June 30, 2021			Year Ended December 31, 2020
Expected volatility	24.2		%	22.2		%
Expected term (years)	5.0			5.0
Risk-free interest rate	0.85		%	0.52		%
Expected dividend yield	0.66		%	1.14		%
Black-Scholes-Merton fair value per stock option granted	$	25.63		$	11.01

Summary of Stock Option Activity and Related Information

The following is a summary of the Company’s stock option activity and related information:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(In thousands)			(Years)	(In millions)
Outstanding at December 31, 2020	3,950	$	65.16
Granted	552	121.91
Exercised	(511)	59.57
Forfeited	(56)	80.45
Outstanding at June 30, 2021	3,935	$	73.63	6.2	$	235.6
Exercisable at June 30, 2021	2,567	$	64.78	4.8	$	176.4

Summary of Nonvested Restricted Stock Activity and Related Information

The following is a summary of the Company’s non-vested restricted stock activity and related information:

	Shares	Weighted Average  Grant Date Fair Value
	(In thousands)
Non-vested restricted stock outstanding at December 31, 2020	701	$	76.86
Granted	148	122.01
Vested	(347)	68.06
Forfeited	(21)	91.66
Non-vested restricted stock outstanding at June 30, 2021	481	$	96.42

The following is a summary of the Company’s non-vested performance restricted stock activity and related information:

	Shares	Weighted Average  Grant Date Fair Value
	(In thousands)
Non-vested performance restricted stock outstanding at December 31, 2020	264	$	72.90
Granted	81	121.91
Performance assumption change 1	39	78.20
Vested	(88)	78.20
Forfeited	(4)	81.76
Non-vested performance restricted stock outstanding at June 30, 2021	292	$	85.44

_________________________________________

1 Reflects the number of PRSUs above target levels based on performance metrics.

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Retirement and Pension Plans (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Components of Net Periodic Pension Benefit Expense (Income)

The components of net periodic pension benefit expense (income) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Defined benefit plans:
Service cost	$	2,030	$	1,929	$	4,051	$	3,879
Interest cost	4,581		5,600		9,148		11,236
Expected return on plan assets	(14,221)		(13,558)		(28,395)		(27,208)
Amortization of net actuarial loss and other	4,379		3,931		8,732		7,907
Pension income	(3,231)		(2,098)		(6,464)		(4,186)
Other plans:
Defined contribution plans	7,961		6,882		16,416		16,907
Foreign plans and other	2,123		1,832		4,357		3,873
Total other plans	10,084		8,714		20,773		20,780
Total net pension expense	$	6,853	$	6,616	$	14,309	$	16,594

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Revenues - Outstanding Contract Asset and (Liability) Accounts (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 73,853	$ 67,804	$ 68,971	$ 73,039
Change in contract assets – increase (decrease)	4,882	(5,235)
Contract liabilities	333,409	199,967	$ 215,093	$ 167,306
Change in contract liabilities – increase	(118,316)	(32,661)
Net change	$ (113,434)	$ (37,896)

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Revenues - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue recognized from contract liabilities	$ 145,200	$ 105,300
Customer advanced payments	39,400		$ 20,500
Accounts and notes receivable, net	754,045		597,472
Allowance for notes and loans receivable	$ 12,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, remaining performance obligation			$ 300,800
Performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, remaining performance obligation	$ 422,300
Performance obligation, expected timing of satisfaction, period	9 months
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Performance obligation, expected timing of satisfaction, period	2 years
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Performance obligation, expected timing of satisfaction, period	3 years

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Revenues - Information About Operations in Different Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net sales	$ 1,386,346	$ 1,011,922	$ 2,602,088	$ 2,214,140
United States
Segment Reporting Information [Line Items]
Net sales	720,951	528,126	1,320,034	1,169,360
United Kingdom
Segment Reporting Information [Line Items]
Net sales	49,217	36,179	101,215	84,110
European Union countries
Segment Reporting Information [Line Items]
Net sales	221,460	159,228	420,422	353,670
Asia
Segment Reporting Information [Line Items]
Net sales	283,303	208,726	542,058	417,301
Other foreign countries
Segment Reporting Information [Line Items]
Net sales	111,415	79,663	218,359	189,699
International
Segment Reporting Information [Line Items]
Net sales	665,395	483,796	1,282,054	1,044,780
Non-US
Segment Reporting Information [Line Items]
Net sales	365,500	257,900	696,400	563,100
Electronic Instruments Group
Segment Reporting Information [Line Items]
Net sales	933,934	647,882	1,724,858	1,422,107
Electronic Instruments Group | United States
Segment Reporting Information [Line Items]
Net sales	495,039	338,757	883,940	745,302
Electronic Instruments Group | United Kingdom
Segment Reporting Information [Line Items]
Net sales	20,649	13,427	42,596	28,220
Electronic Instruments Group | European Union countries
Segment Reporting Information [Line Items]
Net sales	117,856	79,901	221,521	185,577
Electronic Instruments Group | Asia
Segment Reporting Information [Line Items]
Net sales	217,854	161,190	415,415	325,935
Electronic Instruments Group | Other foreign countries
Segment Reporting Information [Line Items]
Net sales	82,536	54,607	161,386	137,073
Electronic Instruments Group | International
Segment Reporting Information [Line Items]
Net sales	438,895	309,125	840,918	676,805
Electromechanical Group
Segment Reporting Information [Line Items]
Net sales	452,412	364,040	877,230	792,033
Electromechanical Group | United States
Segment Reporting Information [Line Items]
Net sales	225,912	189,369	436,094	424,058
Electromechanical Group | United Kingdom
Segment Reporting Information [Line Items]
Net sales	28,568	22,752	58,619	55,890
Electromechanical Group | European Union countries
Segment Reporting Information [Line Items]
Net sales	103,604	79,327	198,901	168,093
Electromechanical Group | Asia
Segment Reporting Information [Line Items]
Net sales	65,449	47,536	126,643	91,366
Electromechanical Group | Other foreign countries
Segment Reporting Information [Line Items]
Net sales	28,879	25,056	56,973	52,626
Electromechanical Group | International
Segment Reporting Information [Line Items]
Net sales	$ 226,500	$ 174,671	$ 441,136	$ 367,975

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Revenues - Major Products and Services in Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 1,386,346	$ 1,011,922	$ 2,602,088	$ 2,214,140
Process and analytical instrumentation
Disaggregation of Revenue [Line Items]
Net sales	644,121	483,540	1,220,680	1,031,980
Aerospace and power
Disaggregation of Revenue [Line Items]
Net sales	416,279	268,475	752,817	621,511
Automation and engineered solutions
Disaggregation of Revenue [Line Items]
Net sales	325,946	259,907	628,591	560,649
Electronic Instruments Group
Disaggregation of Revenue [Line Items]
Net sales	933,934	647,882	1,724,858	1,422,107
Electronic Instruments Group | Process and analytical instrumentation
Disaggregation of Revenue [Line Items]
Net sales	644,121	483,540	1,220,680	1,031,980
Electronic Instruments Group | Aerospace and power
Disaggregation of Revenue [Line Items]
Net sales	289,813	164,342	504,178	390,127
Electronic Instruments Group | Automation and engineered solutions
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Electromechanical Group
Disaggregation of Revenue [Line Items]
Net sales	452,412	364,040	877,230	792,033
Electromechanical Group | Process and analytical instrumentation
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Electromechanical Group | Aerospace and power
Disaggregation of Revenue [Line Items]
Net sales	126,466	104,133	248,639	231,384
Electromechanical Group | Automation and engineered solutions
Disaggregation of Revenue [Line Items]
Net sales	$ 325,946	$ 259,907	$ 628,591	$ 560,649

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Revenues - Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 1,386,346	$ 1,011,922	$ 2,602,088	$ 2,214,140
Products transferred at a point in time
Disaggregation of Revenue [Line Items]
Net sales	1,176,083	849,670	2,206,366	1,862,269
Products and services transferred over time
Disaggregation of Revenue [Line Items]
Net sales	210,263	162,252	395,722	351,871
Electronic Instruments Group
Disaggregation of Revenue [Line Items]
Net sales	933,934	647,882	1,724,858	1,422,107
Electronic Instruments Group | Products transferred at a point in time
Disaggregation of Revenue [Line Items]
Net sales	767,514	525,168	1,414,766	1,158,708
Electronic Instruments Group | Products and services transferred over time
Disaggregation of Revenue [Line Items]
Net sales	166,420	122,714	310,092	263,399
Electromechanical Group
Disaggregation of Revenue [Line Items]
Net sales	452,412	364,040	877,230	792,033
Electromechanical Group | Products transferred at a point in time
Disaggregation of Revenue [Line Items]
Net sales	408,569	324,502	791,600	703,561
Electromechanical Group | Products and services transferred over time
Disaggregation of Revenue [Line Items]
Net sales	$ 43,843	$ 39,538	$ 85,630	$ 88,472

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Revenues - Changes in Accrued Product Warranty Obligation (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at the beginning of the period	$ 27,839	$ 27,611
Accruals for warranties issued during the period	5,964	6,874
Settlements made during the period	(6,620)	(7,605)
Warranty accruals related to acquired businesses and other during the period	2,169	326
Balance at the end of the period	$ 29,352	$ 27,206

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Earnings Per Share - Number of Weighted Average Shares (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Weighted average common shares outstanding:
Basic shares	230,828	229,225	230,632	229,094
Equity-based compensation plans	2,013	1,156	1,937	1,532
Diluted shares	232,841	230,381	232,569	230,626

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Fair Value Measurements - Fair Value of Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual fund investments	$ 10,085	$ 8,969

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Fair Value Measurements - Additional Information (Detail)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2020 CAD ($)	Jun. 30, 2020 GBP (£)
Derivative [Line Items]
Significant transfers from level 1 to level 2	$ 0	$ 0
Significant transfers from level 2 to level 1	$ 0	$ 0
Foreign Exchange Forward | Canada, Dollars
Derivative [Line Items]
Derivative, notional amount			$ 24,000,000.0
Foreign Exchange Forward | United Kingdom, Pounds
Derivative [Line Items]
Derivative, notional amount | £				£ 40,000,000.0

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Fair Value Measurements - Fair Value Disclosures of Financial Instrument Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Recorded Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net (including current portion)	$ (2,326,547)	$ (2,347,587)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net (including current portion)	$ (2,485,398)	$ (2,550,956)

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Hedging Activities - Additional Information (Detail) - Foreign Exchange Contract - Designated as Hedging Instrument $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Derivative [Line Items]
Percentage of effectiveness on net investment hedges	100.00%
Currency remeasurement gain	$ 18.3
British-Pound-Denominated Loans
Derivative [Line Items]
Hedge against net investment in foreign subsidiaries	310.7
Euro Loan
Derivative [Line Items]
Hedge against net investment in foreign subsidiaries	$ 681.4

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Inventories, net - Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods and parts	$ 97,921	$ 81,619
Work in process	138,949	102,945
Raw materials and purchased parts	474,750	374,607
Total inventories, net	$ 711,620	$ 559,171

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Leases - Additional Information (Details)	Jun. 30, 2021
Minimum
Lessee, Lease, Description [Line Items]
Initial lease term	1 month
Maximum
Lessee, Lease, Description [Line Items]
Initial lease term	14 years

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Leases- Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease cost	$ 12,006	$ 10,284	$ 23,523	$ 20,989
Variable lease cost	1,402	976	2,872	2,090
Total lease cost	$ 13,408	$ 11,260	$ 26,395	$ 23,079

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Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Right of use assets, net	$ 178,698	$ 167,233
Lease liabilities included in Accrued Liabilities and other	$ 48,159	$ 44,948
Operating lease, liability, current, statement of financial position	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Lease liabilities included in Other long-term liabilities	$ 135,930	$ 128,173
Operating lease, liability, noncurrent, statement of financial position	Other long-term liabilities	Other long-term liabilities
Total lease liabilities	$ 184,089	$ 173,121

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Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remaining 2021	$ 26,820
2022	47,870
2023	38,592
2024	26,227
2025	19,084
Thereafter	35,419
Total lease payments	194,012
Less: imputed interest	9,923
Total lease liabilities	$ 184,089	$ 173,121

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Acquisitions and Divestiture - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Purchases of businesses, net of cash acquired				$ 1,840,845	$ 116,509
Pro forma information, estimated sales percent			10.00%	10.00%
Proceeds from sale of business				$ 0	245,311
Gain on disposition of business		$ (141,000)		0	$ (141,020)
Income tax expense relating to sale of business		31,400
2021 Consolidated Acquisition
Business Acquisition [Line Items]
Purchases of businesses, net of cash acquired	$ 1,840,800
Business acquisition, goodwill, expected tax deductible amount			$ 106,000	106,000
2020 Consolidated Acquisition
Business Acquisition [Line Items]
Total other intangible assets acquired			942,300	942,300
Finite-lived intangible assets acquired				797,000
Expected amortization, remainder of fiscal year			47,000	47,000
Future amortization expense, year one			47,000	47,000
Future amortization expense, year two			47,000	47,000
Future amortization expense, year three			47,000	47,000
Future amortization expense, year four			47,000	47,000
Future amortization expense, year five			$ 47,000	47,000
2020 Consolidated Acquisition | Trade Names
Business Acquisition [Line Items]
Indefinite-lived intangible trade names acquired				145,300
2020 Consolidated Acquisition | Customer Relationship
Business Acquisition [Line Items]
Finite-lived intangible assets acquired				$ 632,100
2020 Consolidated Acquisition | Customer Relationship | Minimum
Business Acquisition [Line Items]
Amortization period for finite-lived intangible asset				15 years
2020 Consolidated Acquisition | Customer Relationship | Maximum
Business Acquisition [Line Items]
Amortization period for finite-lived intangible asset				20 years
2020 Consolidated Acquisition | Purchased Technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired				$ 164,900
2020 Consolidated Acquisition | Purchased Technology | Minimum
Business Acquisition [Line Items]
Amortization period for finite-lived intangible asset				11 years
2020 Consolidated Acquisition | Purchased Technology | Maximum
Business Acquisition [Line Items]
Amortization period for finite-lived intangible asset				20 years
Kymera International | Reading Alloys
Business Acquisition [Line Items]
Proceeds from sale of business		$ 245,300

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Acquisitions and Divestiture - Allocation of Aggregate Purchase Price of Acquired Net Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 5,139,807		$ 4,224,906
Total cash paid	1,840,845	$ 116,509
Abaco
Business Acquisition [Line Items]
Property, plant and equipment	52,900
Goodwill	691,400
Other intangible assets	675,000
Deferred income taxes	(134,100)
Net working capital and other	60,700
Total cash paid	1,345,900
Other Acquisitions
Business Acquisition [Line Items]
Property, plant and equipment	38,200
Goodwill	231,400
Other intangible assets	267,300
Deferred income taxes	(30,400)
Net working capital and other	(11,600)
Total cash paid	494,900
Total
Business Acquisition [Line Items]
Property, plant and equipment	91,100
Goodwill	922,800
Other intangible assets	942,300
Deferred income taxes	(164,500)
Net working capital and other	49,100
Total cash paid	1,840,800
Accounts receivable included in purchase price	$ 66,800

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Goodwill - Changes in Carrying Amounts of Goodwill by Segment (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 4,224,906
Goodwill acquired	922,800
Purchase price allocation adjustments and other	1,900
Foreign currency translation adjustments	(9,800)
Goodwill, ending balance	5,139,807
Electronic Instruments Group
Goodwill [Roll Forward]
Goodwill, beginning balance	3,050,300
Goodwill acquired	916,900
Purchase price allocation adjustments and other	1,900
Foreign currency translation adjustments	(6,100)
Goodwill, ending balance	3,963,000
Electromechanical Group
Goodwill [Roll Forward]
Goodwill, beginning balance	1,174,600
Goodwill acquired	5,900
Purchase price allocation adjustments and other	0
Foreign currency translation adjustments	(3,700)
Goodwill, ending balance	$ 1,176,800

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefits	$ 132.3		$ 100.7
The total amount of unrecognized tax benefits that would impact tax rate, if recognized	$ 81.4
Effective tax rate	20.60%	19.50%

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Income Taxes - Reconciliation of Liability for Uncertain Tax Positions (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at the beginning of the year	$ 100.7
Additions for tax positions	32.4
Reductions for tax positions	(0.8)
Balance at the end of the year	$ 132.3

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Debt (Details) - Secured Debt - USD ($) $ in Millions	Apr. 26, 2021	Jun. 30, 2021
Debt Instrument [Line Items]
Debt instrument, term	5 years
Debt instrument, face amount	$ 800.0
Long-term debt, gross		$ 150.0

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Share-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of stock options exercised		$ 30.5
Total fair value of stock options vested		13.6
Expected future pre-tax compensation expense, nonvested stock options		$ 22.6
Weighted average period to recognize expected future pre-tax compensation expense		2 years
Nonvested restricted stock outstanding (in shares)		500
Share-based payment arrangement, nonvested award, cost not yet recognized, amount		$ 9.7
Share-based payment award, options, outstanding (in shares)		3,935	3,950
Non vested Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested stock options outstanding (in shares)		1,400
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period to recognize expected future pre-tax compensation expense		2 years
Total fair value of vested restricted stock		$ 23.6
Expected future pre-tax compensation expense, nonvested restricted shares		$ 37.0
Nonvested restricted stock outstanding (in shares)		481	701
Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested restricted stock outstanding (in shares)		292	264
Share-based payment award, options, outstanding (in shares)		300
Officers And Key Management Employees | Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cliff vesting period	3 years
Minimum | Officers And Key Management Employees | Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting rate	0.00%
Maximum | Officers And Key Management Employees | Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting rate	200.00%

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Share-Based Compensation - Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock option expense	$ 3,326	$ 3,626	$ 7,249	$ 6,999
Restricted stock expense	5,690	4,586	11,917	8,128
Performance restricted stock unit expense	3,137	2,993	4,427	3,926
Total pre-tax expense	$ 12,153	$ 11,205	$ 23,593	$ 19,053

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Share-Based Compensation - Weighted Average Assumptions Used for Estimating Fair Values of Stock Options Granted (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Expected volatility	24.20%	22.20%
Expected term (years)	5 years	5 years
Risk-free interest rate	0.85%	0.52%
Expected dividend yield	0.66%	1.14%
Black-Scholes-Merton fair value per stock option granted (in usd per share)	$ 25.63	$ 11.01

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Share-Based Compensation - Summary of Stock Option Activity and Related Information (Detail) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, outstanding (in shares) | shares	3,950
Granted (in shares) | shares	552
Exercised (in shares) | shares	(511)
Forfeited (in shares) | shares	(56)
Ending balance, outstanding (in shares) | shares	3,935
Ending balance, exercisable (in shares) | shares	2,567
Weighted Average Exercise Price
Beginning balance, outstanding, weighted average exercise price (in usd per share) | $ / shares	$ 65.16
Granted, weighted average exercise price (in usd per share) | $ / shares	121.91
Exercised, weighted average exercise price (in usd per share) | $ / shares	59.57
Forfeited, weighted average exercise price (in usd per share) | $ / shares	80.45
Ending balance, outstanding, weighted average exercise price (in shares) | $ / shares	73.63
Ending balance, exercisable, weighted average exercise price (in usd per share) | $ / shares	$ 64.78
Weighted Average Remaining Contractual Life
Ending balance, outstanding, weighted average remaining contractual life	6 years 2 months 12 days
Ending balance, exercisable, weighted average remaining contractual life	4 years 9 months 18 days
Aggregate Intrinsic Value
Ending balance, outstanding, aggregate intrinsic value | $	$ 235.6
Ending balance, exercisable, aggregate intrinsic value | $	$ 176.4

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Share-Based Compensation - Summary of Nonvested Restricted Stock Activity and Related Information (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Shares
Non-vested restricted stock outstanding at June 30, 2021 (in shares)	500
Restricted Shares
Shares
Non-vested restricted stock outstanding at December 31, 2020 (in shares)	701
Granted (in shares)	148
Vested (in shares)	(347)
Forfeited (in shares)	(21)
Non-vested restricted stock outstanding at June 30, 2021 (in shares)	481
Weighted Average  Grant Date Fair Value
Non-vested restricted stock outstanding at December 31, 2020 (in usd per share) | $ / shares	$ 76.86
Granted (in usd per share) | $ / shares	122.01
Vested (in usd per share) | $ / shares	68.06
Forfeited (in usd per share) | $ / shares	91.66
Non-vested restricted stock outstanding at June 30, 2021 (in usd per share) | $ / shares	$ 96.42
Performance Restricted Stock Units
Shares
Non-vested restricted stock outstanding at December 31, 2020 (in shares)	264
Granted (in shares)	81
Performance assumption change (in shares)	39
Vested (in shares)	(88)
Forfeited (in shares)	(4)
Non-vested restricted stock outstanding at June 30, 2021 (in shares)	292
Weighted Average  Grant Date Fair Value
Non-vested restricted stock outstanding at December 31, 2020 (in usd per share) | $ / shares	$ 72.90
Granted (in usd per share) | $ / shares	121.91
Performance assumption change (in usd per share) | $ / shares	78.20
Vested (in usd per share) | $ / shares	78.20
Forfeited (in usd per share) | $ / shares	81.76
Non-vested restricted stock outstanding at June 30, 2021 (in usd per share) | $ / shares	$ 85.44

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Retirement and Pension Plans - Components of Net Periodic Pension Benefit Expense (Income) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined benefit plans:
Service cost	$ 2,030	$ 1,929	$ 4,051	$ 3,879
Interest cost	4,581	5,600	9,148	11,236
Expected return on plan assets	(14,221)	(13,558)	(28,395)	(27,208)
Amortization of net actuarial loss and other	4,379	3,931	8,732	7,907
Pension income	(3,231)	(2,098)	(6,464)	(4,186)
Other plans:
Defined contribution plans	7,961	6,882	16,416	16,907
Foreign plans and other	2,123	1,832	4,357	3,873
Total other plans	10,084	8,714	20,773	20,780
Total net pension expense	$ 6,853	$ 6,616	$ 14,309	$ 16,594

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Retirement and Pension Plans - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Retirement Benefits [Abstract]
Defined benefit pension plan contributions	$ 4.1	$ 3.2

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Contingencies - Additional Information (Detail) $ in Millions	1 Months Ended	6 Months Ended
	Apr. 30, 2021 USD ($)	Jun. 30, 2021 USD ($) site	Dec. 31, 2020 USD ($)
Site Contingency [Line Items]
Number of non-owned sites company is named potentially responsible party | site		13
Number of non-owned sites the Company is identified as a de minimis party | site		12
Number of non-owned sites company is in agreement on amount of de minimis settlement | site		8
Number of non-owned sites company is continuing to investigate | site		4
Total environmental reserves		$ 33.8	$ 32.4
Payments for environmental liabilities		(3.1)
Loss contingency accrual, payments	$ 6.8
HCC Industries
Site Contingency [Line Items]
Environmental expense		4.5
Reserves related to an owned site acquired		$ 6.3	$ 7.4