UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 _____________________________ 

Form 10-Q

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	June 30, 2022

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 1-10235

IDEX CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware				36-3555336
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
3100 Sanders Road,	Suite 301,	Northbrook,	Illinois	60062
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code: (847) 498-7070

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, par value $.01 per share	IEX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  ☑    No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer  ☐	Non-accelerated filer ☐	Smaller reporting company	☐
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐   No  ☑ 

Number of shares of common stock of IDEX Corporation outstanding as of July 22, 2022: 75,475,605.

TABLE OF CONTENTS

Part I. Financial Information
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
	Note 1. Basis of Presentation and Significant Accounting Policies	7
	Note 2. Acquisitions	7
	Note 3. Business Segments	12
	Note 4. Revenue	13
	Note 5. Earnings Per Common Share	16
	Note 6. Inventories	17
	Note 7. Goodwill and Intangible Assets	17
	Note 8. Accrued Expenses	19
	Note 9. Other Noncurrent Liabilities	19
	Note 10. Borrowings	20
	Note 11. Fair Value Measurements	21
	Note 12. Leases	22
	Note 13. Restructuring Expenses and Asset Impairments	23
	Note 14. Other Comprehensive (Loss) Income	25
	Note 15. Share Repurchases	26
	Note 16. Share-Based Compensation	26
	Note 17. Retirement Benefits	30
	Note 18. Legal Proceedings	31
	Note 19. Income Taxes	31
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.	Controls and Procedures	49
Part II. Other Information
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 6.	Exhibits	51
Signatures		52

PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

IDEX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions, except per share amounts)

(unaudited)

	June 30, 2022		December 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	557.8	$	855.4
Receivables, less allowance for doubtful accounts of $7.9 at June 30, 2022 and $7.2 at December 31, 2021	425.7		356.4
Inventories	457.4		370.4
Other current assets	110.4		95.8
Total current assets	1,551.3		1,678.0
Property, plant and equipment - net	323.3		327.3
Goodwill	2,238.6		2,167.7
Intangible assets - net	655.0		597.3
Other noncurrent assets	144.6		146.9
Total assets	$	4,912.8	$	4,917.2
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable	$	214.4	$	178.8
Accrued expenses	254.0		259.8
Dividends payable	45.4		41.4
Total current liabilities	513.8		480.0
Long-term borrowings	1,190.9		1,190.3
Deferred income taxes	189.6		196.4
Other noncurrent liabilities	230.5		247.4
Total liabilities	2,124.8		2,114.1
Commitments and contingencies
Shareholders’ equity
Preferred stock:
Authorized: 5,000,000 shares, $.01 per share par value; Issued: None	—		—
Common stock:
Authorized: 150,000,000 shares, $.01 per share par value
Issued: 90,075,084 shares at June 30, 2022 and 90,067,996 shares at December 31, 2021	0.9		0.9
Additional paid-in capital	809.1		795.6
Retained earnings	3,313.8		3,126.5
Treasury stock at cost: 14,405,163 shares at June 30, 2022 and 13,872,555 shares at December 31, 2021	(1,165.8)		(1,050.3)
Accumulated other comprehensive loss	(169.8)		(69.6)
Total shareholders’ equity	2,788.2		2,803.1
Noncontrolling interest	(0.2)		—
Total equity	2,788.0		2,803.1
Total liabilities and equity	$	4,912.8	$	4,917.2

See Notes to Condensed Consolidated Financial Statements

1

IDEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net sales	$	796.1	$	686.0	$	1,547.2	$	1,338.0
Cost of sales	439.2		379.9		847.8		739.3
Gross profit	356.9		306.1		699.4		598.7
Selling, general and administrative expenses	167.5		144.6		321.8		279.5
Restructuring expenses and asset impairments	2.8		3.2		3.4		5.4
Operating income	186.6		158.3		374.2		313.8
Other expense (income) - net	—		17.2		(2.3)		16.4
Interest expense	9.5		11.2		19.0		21.9
Income before income taxes	177.1		129.9		357.5		275.5
Provision for income taxes	39.0		27.7		79.5		60.6
Net income	138.1		102.2		278.0		214.9
Net loss attributable to noncontrolling interest	0.1		—		0.2		—
Net income attributable to IDEX	$	138.2	$	102.2	$	278.2	$	214.9
Earnings per common share:
Basic earnings per common share attributable to IDEX	$	1.82	$	1.34	$	3.66	$	2.83
Diluted earnings per common share attributable to IDEX	$	1.81	$	1.34	$	3.65	$	2.81
Share data:
Basic weighted average common shares outstanding	75.8		76.0		76.0		75.9
Diluted weighted average common shares outstanding	76.1		76.4		76.2		76.4

See Notes to Condensed Consolidated Financial Statements

2

IDEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	138.1	$	102.2	$	278.0	$	214.9
Other comprehensive loss:
Reclassification adjustments for derivatives, net of tax	—		1.8		—		2.5
Pension and other postretirement adjustments, net of tax	0.6		9.2		1.2		10.0
Cumulative translation adjustment	(81.9)		20.3		(101.4)		(28.2)
Other comprehensive loss	(81.3)		31.3		(100.2)		(15.7)
Comprehensive income	56.8		133.5		177.8		199.2
Comprehensive loss attributable to noncontrolling interest	0.1		—		0.2		—
Comprehensive income attributable to IDEX	$	56.9	$	133.5	$	178.0	$	199.2

See Notes to Condensed Consolidated Financial Statements

3

IDEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Dollars in millions)

(unaudited)

					Accumulated Other Comprehensive Loss
	Common Stock and Additional Paid-In Capital		Retained Earnings		Cumulative Translation Adjustment		Retirement Benefits Adjustment		Treasury Stock		Total Shareholders’ Equity		Noncontrolling Interest		Total Equity
Balance, December 31, 2021	$	796.5	$	3,126.5	$	(62.2)	$	(7.4)	$	(1,050.3)	$	2,803.1	$	—	$	2,803.1
Net income (loss)	—		140.0		—		—		—		140.0		(0.1)		139.9
Cumulative translation adjustment	—		—		(19.5)		—		—		(19.5)		—		(19.5)
Net change in retirement obligations (net of tax of $0.2)	—		—		—		0.6		—		0.6		—		0.6
Issuance of 73,755 shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax of $1.7)	—		—		—		—		1.4		1.4		—		1.4
Repurchase of 147,500 shares of common stock	—		—		—		—		(28.3)		(28.3)				(28.3)
Shares surrendered for tax withholding	—		—		—		—		(4.9)		(4.9)		—		(4.9)
Share-based compensation	6.6		—		—		—		—		6.6		—		6.6
Balance, March 31, 2022	$	803.1	$	3,266.5	$	(81.7)	$	(6.8)	$	(1,082.1)	$	2,899.0	$	(0.1)	$	2,898.9
Net income (loss)	—		138.2		—		—		—		138.2		(0.1)		138.1
Cumulative translation adjustment	—		—		(81.9)		—		—		(81.9)				(81.9)
Net change in retirement obligations (net of tax of $0.5)	—		—		—		0.6		—		0.6		—		0.6
Issuance of 42,408 shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax of $0.4)	—		—		—		—		3.8		3.8		—		3.8
Repurchase of 474,690 shares of common stock	—		—		—		—		(87.5)		(87.5)		—		(87.5)
Share-based compensation	6.9		—		—		—		—		6.9		—		6.9
Cash dividends declared - $1.20 per common share outstanding	—		(90.9)		—		—		—		(90.9)		—		(90.9)
Balance, June 30, 2022	$	810.0	$	3,313.8	$	(163.6)	$	(6.2)	$	(1,165.8)	$	2,788.2	$	(0.2)	$	2,788.0

4

IDEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Dollars in millions)

(unaudited)

					Accumulated Other Comprehensive Loss
	Common Stock and Additional Paid-In Capital		Retained Earnings		Cumulative Translation Adjustment		Retirement Benefits Adjustment		Cumulative Unrealized Gain (Loss) on Derivatives		Treasury Stock		Total Shareholders’ Equity		Noncontrolling Interest		Total Equity
Balance, December 31, 2020	$	776.1	$	2,841.5	$	13.4	$	(24.4)	$	(2.5)	$	(1,063.9)	$	2,540.2	$	0.1	$	2,540.3
Net income	—		112.7		—		—		—		—		112.7		—		112.7
Cumulative translation adjustment	—		—		(48.5)		—		—		—		(48.5)		—		(48.5)
Net change in retirement obligations (net of tax of $0.3)	—		—		—		0.8		—		—		0.8		—		0.8
Net change on derivatives designated as cash flow hedges (net of tax of $0.2)	—		—		—		—		0.7		—		0.7		—		0.7
Issuance of 106,122 shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax of $1.9)	—		—		—		—		—		3.2		3.2		—		3.2
Shares surrendered for tax withholding	—		—		—		—		—		(5.4)		(5.4)		—		(5.4)
Share-based compensation	6.2		—		—		—		—		—		6.2		—		6.2
Balance, March 31, 2021	$	782.3	$	2,954.2	$	(35.1)	$	(23.6)	$	(1.8)	$	(1,066.1)	$	2,609.9	$	0.1	$	2,610.0
Net income	—		102.2		—		—		—		—		102.2		—		102.2
Cumulative translation adjustment	—		—		20.3		—		—		—		20.3		—		20.3
Net change in retirement obligations (net of tax of $2.8)	—		—		—		9.2		—		—		9.2		—		9.2
Net change on derivatives designated as cash flow hedges (net of tax of $0.5)	—		—		—		—		1.8		—		1.8		—		1.8
Issuance of 67,476 shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax of $0.6)	—		—		—		—		—		7.5		7.5		—		7.5
Shares surrendered for tax withholding	—		—		—		—		—		(0.1)		(0.1)		—		(0.1)
Share-based compensation	4.3		—		—		—		—		—		4.3		—		4.3
Cash dividends declared - $1.08 per common share outstanding	—		(82.3)		—		—		—		—		(82.3)		—		(82.3)
Balance, June 30, 2021	$	786.6	$	2,974.1	$	(14.8)	$	(14.4)	$	—	$	(1,058.7)	$	2,672.8	$	0.1	$	2,672.9

See Notes to Condensed Consolidated Financial Statements

5

IDEX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(unaudited)

	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities
Net income	$	278.0	$	214.9
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of assets	(2.6)		—
Asset impairments	0.2		0.2
Depreciation and amortization	24.7		21.5
Amortization of intangible assets	32.2		24.5
Amortization of debt issuance expenses	0.8		1.0
Share-based compensation expense	13.5		10.5
Deferred income taxes	(0.2)		(14.0)
Non-cash interest expense associated with forward starting swaps	—		3.3
Termination of the U.S. pension plan	—		9.7
Changes in (net of the effect from acquisitions/divestitures and foreign exchange):
Receivables	(68.7)		(46.3)
Inventories	(84.5)		(20.9)
Other current assets	(17.8)		0.1
Trade accounts payable	36.2		22.6
Deferred revenue	1.3		15.5
Accrued expenses	(22.5)		2.3
Other - net	1.4		0.7
Net cash flows provided by operating activities	192.0		245.6
Cash flows from investing activities
Purchases of property, plant and equipment	(31.7)		(30.6)
Acquisition of businesses, net of cash acquired	(234.9)		(575.6)
Note receivable from collaborative partner	—		(4.2)
Proceeds from disposal of fixed assets	6.6		0.2
Other - net	(0.1)		0.9
Net cash flows used in investing activities	(260.1)		(609.3)
Cash flows from financing activities
Proceeds from issuance of long-term borrowings	—		499.4
Payment of long-term borrowings	—		(350.0)
Payment of make-whole redemption premium	—		(6.7)
Debt issuance costs	—		(4.6)
Dividends paid	(86.9)		(79.2)
Proceeds from stock option exercises	5.2		10.7
Repurchases of common stock	(110.4)		—
Shares surrendered for tax withholding	(4.9)		(5.5)
Other - net	(0.1)		(0.1)
Net cash flows (used in) provided by financing activities	(197.1)		64.0
Effect of exchange rate changes on cash and cash equivalents	(32.4)		(11.8)
Net decrease in cash	(297.6)		(311.5)
Cash and cash equivalents at beginning of year	855.4		1,025.9
Cash and cash equivalents at end of period	$	557.8	$	714.4
Supplemental cash flow information
Cash paid for:
Interest	$	18.5	$	17.2
Income taxes	86.9		72.7

See Notes to Condensed Consolidated Financial Statements

6

IDEX CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

(unaudited)

1.    Basis of Presentation and Significant Accounting Policies

The Condensed Consolidated Financial Statements of IDEX Corporation (“IDEX” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The statements are unaudited but include all adjustments, consisting only of recurring items, except as noted, that the Company considers necessary for a fair presentation of the information set forth herein. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the entire year.

The Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in this report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Recently Issued Accounting Standards

In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which adds contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with revenue recognition guidance. ASU 2021-08 is effective for annual periods beginning after December 15, 2022 and interim periods therein. Early adoption is permitted. Entities should apply the ASU’s provisions prospectively to business combinations occurring on or after the effective date of the amendments. The adoption of this standard is not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Accounting Standards Codification (“ASC”) 832): Disclosures by Business Entities about Government Assistance, which requires entities to provide certain annual disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance. ASU 2021-10 is effective for annual periods beginning after December 15, 2021. Early adoption is permitted, and entities may apply the ASU’s provisions prospectively or retrospectively. The adoption of this standard is not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.

2.    Acquisitions

All of the Company’s acquisitions of businesses have been accounted for under ASC 805, Business Combinations. Accordingly, the assets and liabilities of the acquired companies, after adjustments to reflect the fair values assigned to assets and liabilities, have been included in the Company’s Condensed Consolidated Financial Statements from their respective dates of acquisition. The results of operations of ABEL Pumps, L.P. and certain of its affiliates (“ABEL”), Airtech Group, Inc., US Valve Corporation and related entities (“Airtech”), Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and Pipeline Renewal Technologies (“Nexsight”) and KZ CO. (“KZValve”) have been included in the Company’s Condensed Consolidated Financial Statements since the dates of acquisition on March 10, 2021, June 14, 2021, February 28, 2022 and May 2, 2022, respectively. Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on the Company’s Condensed Consolidated Financial Statements individually or in the aggregate.

2022 Acquisitions

Nexsight

On February 28, 2022, the Company acquired Nexsight in a partial stock and asset acquisition. Nexsight complements and creates synergies with the Company’s existing iPEK and ADS business units that design and create sewer crawlers, inspection and monitoring systems and software applications that allow teams to identify, anticipate and correct wastewater system issues remotely. Headquartered in Randolph, New Jersey, Nexsight operates in the Company’s Water reporting unit within the Fluid & Metering Technologies (“FMT”) segment. Nexsight was acquired for cash consideration of $114.7 million. The entire

7

IDEX CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

(unaudited)

purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $58.3 million and $49.8 million, respectively. The goodwill is partially deductible for tax purposes.

The Company made a preliminary allocation of the purchase price for the Nexsight acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information about these assets and liabilities, including intangible asset appraisals, inventory valuation and accrued expenses, and continues to integrate the newly acquired business, the Company will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company will continue to make required adjustments to the purchase price allocation prior to the completion of the measurement period.

The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows:

	Total
Current assets, net of cash acquired	$	16.6
Property, plant and equipment	2.0
Goodwill	58.3
Intangible assets	49.8
Other noncurrent assets	4.4
Total assets acquired	131.1
Current liabilities	(11.1)
Deferred income taxes	(1.0)
Other noncurrent liabilities	(4.3)
Net assets acquired	$	114.7

Acquired intangible assets consist of trade names, customer relationships and software. The goodwill recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.

The acquired intangible assets and weighted average amortization periods are as follows:

	Total		Weighted Average Life
Trade names	$	13.5	15
Customer relationships	31.5		10
Software	4.8		5
Acquired intangible assets	$	49.8

KZValve

On May 2, 2022, the Company acquired KZValve in an asset acquisition. KZValve is a leading manufacturer of electric valves and controllers used primarily in agricultural applications. KZValve will augment and expand IDEX’s agricultural portfolio, complementing Banjo’s current fluid management solutions for these applications. Headquartered in Greenwood, Nebraska, KZValve operates in the Company’s Agriculture reporting unit within the FMT segment. KZValve was acquired for cash consideration of $120.2 million. The entire purchase was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $56.6 million and $52.0 million, respectively. The goodwill is deductible for tax purposes.

8

IDEX CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

(unaudited)

The Company made a preliminary allocation of the purchase price for the KZValve acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information about these assets and liabilities, including intangible asset appraisals, inventory valuation and accrued expenses, and continues to integrate the newly acquired business, the Company will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company will continue to make required adjustments to the purchase price allocation prior to the completion of the measurement period.

The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows:

	Total
Current assets, net of cash acquired	$	9.7
Property, plant and equipment	1.8
Goodwill	56.6
Intangible assets	52.0
Deferred income taxes	0.1
Other noncurrent assets	1.0
Total assets acquired	121.2
Current liabilities	(1.0)
Net assets acquired	$	120.2

Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.

The acquired intangible assets and weighted average amortization periods are as follows:

	Total		Weighted Average Life
Trade names	$	7.5	15
Customer relationships	36.0		13
Unpatented technology	8.5		10
Acquired intangible assets	$	52.0

The Company incurred $1.7 million and $2.6 million of acquisition-related transaction costs during the three and six months ended June 30, 2022, respectively. These costs were recorded in Selling, general and administrative expenses and were related to completed transactions, pending transactions and potential transactions, including transactions that ultimately were not completed. The Company also recorded $0.1 million and $0.3 million of fair value inventory step-up charges associated with the completed 2022 acquisitions of Nexsight and KZValve, respectively, in Cost of sales during the three and six months ended June 30, 2022.

2021 Acquisitions

ABEL

On March 10, 2021, the Company acquired the stock of ABEL. ABEL designs and manufactures highly engineered reciprocating positive displacement pumps for a variety of end markets, including mining, marine, power, water, wastewater and other general industries. Headquartered in Büchen, Germany, with sales and service locations in Madrid, Spain, and subsequent to the acquisition, with operations in Mansfield, Ohio, ABEL operates in the Company’s Pumps reporting unit within the FMT segment. ABEL was acquired for cash consideration of $106.3 million. The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $42.7 million and $46.0 million, respectively. The goodwill is not deductible for tax purposes.

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IDEX CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

(unaudited)

The Company finalized the allocation of the purchase price for the ABEL acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy.

The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows:

	Total
Current assets, net of cash acquired	$	18.1
Property, plant and equipment	4.0
Goodwill	42.7
Intangible assets	46.0
Deferred income taxes	2.6
Other noncurrent assets	0.1
Total assets acquired	113.5
Current liabilities	(7.1)
Other noncurrent liabilities	(0.1)
Net assets acquired	$	106.3

Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business.

The acquired intangible assets and weighted average amortization periods are as follows:

	Total		Weighted Average Life
Trade names	$	9.0	15
Customer relationships	30.0