Form 10-Q
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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
September 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
For the transition period from
                
to
                
Commission File Number
1-12981
 
AMETEK, Inc.
(Exact name of registrant as specified in its charter)
 
     
Delaware
 
14-1682544
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
     
1100 Cassatt Road
Berwyn, Pennsylvania
 
19312-1177
(Address of principal executive offices)
 
(Zip Code)
 
 
 
 
 
 
 
 
Registrant’s telephone number, including area code:
(610647-2121
 
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
 
 
 
 
 
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  
    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
             
Large accelerated filer
 
 
Accelerated filer
 
             
Non-accelerated filer
 
 
Smaller reporting company
 
         
 
Emerging growth company
 
 
 
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
 12b-2
of the Exchange Act).    Yes  
    No  
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 October 
29
, 2019 was 228,592,872 shares.
     
 
 
 
 
 
 
 
 

 
AMETEK, Inc.
Form
10-Q
Table of Contents
         
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2
 
 
 
3
 
 
 
4
 
 
 
5
 
 
 
6
 
 
 
7
 
 
 
 
 
 
 
 
22
 
 
 
28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29
 
 
 
 
 
 
 
 
30
 
 
 
 
 
 
 
 
31
 
 
 
 
 
 
 
 
 
 

 
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
                                 
 
Three Months Ended
   
Nine Months Ended
 
 
September 30,
   
September 30,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Net sales
 
$
1,276,633
 
  $
1,192,962
   
$
3,853,736
 
  $
3,574,544
 
                                 
Cost of sales
 
 
823,262
 
   
782,994
   
 
2,512,722
 
   
2,351,042
 
Selling, general and administrative
 
 
152,315
 
   
144,702
   
 
461,289
 
   
429,982
 
                                 
Total operating expenses
 
 
975,577
 
   
927,696
   
 
2,974,011
 
   
2,781,024
 
                                 
Operating income
 
 
301,056
 
   
265,266
   
 
879,725
 
   
793,520
 
Interest expense
 
 
(21,308
)
   
(19,391
)  
 
(65,436
)
   
(61,861
)
Other expense, net
 
 
(5,517
)
   
(945
)  
 
(12,521
)
   
(2,684
)
                                 
Income before income taxes
 
 
274,231
 
   
244,930
   
 
801,768
 
   
728,975
 
Provision for income taxes
 
 
53,482
 
   
53,717
   
 
161,248
 
   
162,562
 
                                 
Net income
 
$
220,749
 
  $
191,213
   
$
640,520
 
  $
566,413
 
                                 
Basic earnings per share
 
$
0.97
 
  $
0.83
   
$
2.82
 
  $
2.45
 
                                 
Diluted earnings per share
 
$
0.96
 
  $
0.82
   
$
2.79
 
  $
2.43
 
                                 
Weighted average common shares outstanding:
 
 
 
   
   
 
 
   
 
Basic shares
 
 
228,041
 
   
231,502
   
 
227,493
 
   
231,227
 
                                 
Diluted shares
 
 
229,560
 
   
233,250
   
 
229,191
 
   
233,171
 
                                 
Dividends declared and paid per share
 
$
0.14
 
  $
0.14
   
$
0.42
 
  $
0.42
 
                                 
 
 
 
See accompanying notes.
 
2
 

 
AMETEK, Inc.
Condensed Consolidated Statement of Comprehensive Income
(In thousands)
(Unaudited)
                                 
 
Three Months Ended
   
Nine Months Ended
 
 
September 30,
   
September 30,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Total comprehensive income
 
$
198,102
 
  $
189,089
   
$
633,135
 
  $
539,385
 
                                 
 
 
 
 
 
 
 
 
See accompanying notes.
 
3
 

 
AMETEK, Inc.
Consolidated Balance Sheet
(In thousands)
                 
 
September 30,
 
 
December 31,
 
 
2019
 
 
2018
 
 
(Unaudited)
 
 
 
ASSETS
 
 
 
 
 
 
Current assets:
   
     
 
Cash and cash equivalents
 
$
735,376
 
  $
353,975
 
Receivables, net
 
 
761,961
 
   
732,839
 
Inventories, net
 
 
623,675
 
   
624,744
 
Other current assets
 
 
151,172
 
   
124,586
 
                 
Total current assets
 
 
2,272,184
 
   
1,836,144
 
Property, plant and equipment, net
 
 
537,157
 
   
554,130
 
Right of use assets, net
 
 
174,438
 
   
—  
 
Goodwill
 
 
3,668,445
 
   
3,612,033
 
Other intangibles, net
 
 
2,310,152
 
   
2,403,771
 
Investments and other assets
 
 
257,333
 
   
256,210
 
                 
Total assets
 
$
9,219,709
 
  $
8,662,288
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
Current liabilities:
 
 
 
   
 
Short-term borrowings and current portion of long-term debt, net
 
$
199,533
 
  $
358,876
 
Accounts payable
 
 
381,945
 
   
399,571
 
Customer advanced payments
 
 
144,181
 
   
137,229
 
Income taxes payable
 
 
41,904
 
   
48,597
 
Accrued liabilities and other
 
 
342,956
 
   
314,431
 
                 
Total current liabilities
 
 
1,110,519
 
   
1,258,704
 
Long-term debt, net
 
 
2,229,252
 
   
2,273,837
 
Deferred income taxes
 
 
549,178
 
   
528,336
 
Other long-term liabilities
 
 
464,795
 
   
359,489
 
                 
Total liabilities
 
 
4,353,744
 
   
4,420,366
 
                 
Stockholders’ equity:
 
 
 
   
 
Common stock
 
 
2,657
 
   
2,640
 
Capital in excess of par value
 
 
792,680
 
   
706,743
 
Retained earnings
 
 
6,198,836
 
   
5,653,811
 
Accumulated other comprehensive loss
 
 
(558,473
)
   
(551,088
)
Treasury stock
 
 
(1,569,735
)
   
(1,570,184
)
                 
Total stockholders’ equity
 
 
4,865,965
 
   
4,241,922
 
                 
Total liabilities and stockholders’ equity
 
$
9,219,709
 
  $
8,662,288
 
                 
 
 
 
 
See accompanying notes.
 
4
 

 
AMETEK, Inc.
Consolidated Statement of Stockholders’ Equity
(In thousands)
(Unaudited)
                                 
 
Three months ended
September 30,
   
Nine months ended
September 30,
 
Capital stock
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Preferred stock, $0.01 par value
  $
—  
    $
—  
   
$
—  
 
  $
—  
 
                                 
Common stock, $0.01 par value
   
     
   
 
 
   
 
Balance at the beginning of the period
 
 
2,654
 
   
2,637
   
 
2,640
 
   
2,631
 
Shares issued
 
 
3
 
   
3
   
 
17
 
   
9
 
                                 
Balance at the end of the period
 
 
2,657
 
   
2,640
   
 
2,657
 
   
2,640
 
                                 
Capital in excess of par value
 
 
 
   
   
 
 
   
 
Balance at the beginning of the period
 
 
759,775
 
   
680,863
   
 
706,743
 
   
660,894
 
Issuance of common stock under employee stock plans
 
 
19,347
 
   
9,886
   
 
56,933
 
   
16,900
 
Share-based compensation
expense
 
 
13,558
 
   
7,145
   
 
29,004
 
   
20,100
 
                                 
Balance at the end of the period
 
 
792,680
 
   
697,894
   
 
792,680
 
   
697,894
 
                                 
Retained earnings
 
 
 
   
   
 
 
   
 
Balance at the beginning of the period
 
 
6,009,968
 
   
5,315,232
   
 
5,653,811
 
   
5,002,419
 
Net income
 
 
220,749
 
   
191,213
   
 
640,520
 
   
566,413
 
Cash dividends paid
 
 
(31,883
)
   
(32,374
)  
 
(95,498
)
   
(97,027
)
Other
 
 
2
 
   
(1
)  
 
3
 
   
2,265
 
                                 
Balance at the end of the period
 
 
6,198,836
 
   
5,474,070
   
 
6,198,836
 
   
5,474,070
 
                                 
Accumulated other comprehensive (loss) income
 
 
 
   
   
 
 
   
 
Foreign currency translation:
 
 
 
   
   
 
 
   
 
Balance at the beginning of the period
 
 
(292,790
)
   
(281,175
)  
 
(302,138
)
   
(251,909
)
Translation adjustments
 
 
(44,543
)
   
(7,771
)  
 
(38,368
)
   
(48,303
)
Change in long-term intercompany notes
 
 
(11,292
)
   
(1,707
)  
 
(12,312
)
   
(11,009
)
Net investment hedge instruments gain (loss), net of tax of ($9,736) and ($1,649) for the quarter ended September 30, 2019 and 2018 and ($11,086) and ($8,274) for the nine months ended September 30, 2019 and 2018, respectively
 
 
30,231
 
   
5,121
   
 
34,424
 
   
25,689
 
                                 
Balance at the end of the period
 
 
(318,394
)
   
(285,532
)  
 
(318,394
)
   
(285,532
)
                                 
Defined benefit pension plans:
 
 
 
   
   
 
 
   
 
Balance at the beginning of the period
 
 
(243,036
)
   
(172,905
)  
 
(248,950
)
   
(177,371
)
Amortization of net actuarial loss (gain) and other, net of tax of ($873) and ($719) for the quarter ended September 30, 2019 and 2018, and ($2,620) and ($2,157) for the nine months ended September 30, 2019 and 2018, respectively
 
 
2,957
 
   
2,233
   
 
8,871
 
   
6,699
 
                                 
Balance at the end of the period
 
 
(240,079
)
   
(170,672
)  
 
(240,079
)
   
(170,672
)
                                 
Unrealized holding gain (loss) on
available-for-sale
securities:
 
 
 
   
   
 
 
   
 
Balance at the beginning of the period
 
 
—  
 
   
—  
   
 
—  
 
   
104
 
Decrease during the year, net of tax
 
 
—  
 
   
—  
   
 
—  
 
   
(104
)
                                 
Balance at the end of the period
 
 
—  
 
   
—  
   
 
—  
 
   
—  
 
                                 
Accumulated other comprehensive loss at the end of the period
 
 
(558,473
)
   
(456,204
)  
 
(558,473
)
   
(456,204
)
                                 
Treasury stock
 
 
 
   
   
 
 
   
 
Balance at the beginning of the period
 
 
(1,569,790
)
   
(1,206,556
)  
 
(1,570,184
)
   
(1,209,135
)
Issuance of common stock under employee stock plans
 
 
346
 
   
93
   
 
7,062
 
   
6,678
 
Purchase of treasury stock
 
 
(291
)
   
(28
)  
 
(6,613
)
   
(4,034
)
                                 
Balance at the end of the period
 
 
(1,569,735
)
   
(1,206,491
)  
 
(1,569,735
)
   
(1,206,491
)
                                 
Total stockholders’ equity
 
$
4,865,965
 
  $
4,511,909
   
$
4,865,965
 
  $
4,511,909
 
                                 
 
 
 
 
 
See accompanying notes.
 
5
 

 
AMETEK, Inc.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
                 
 
Nine Months Ended
 
 
September 30,
 
 
2019
 
 
2018
 
Cash provided by (used for):
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
Net income
 
$
640,520
 
  $
566,413
 
Adjustments to reconcile net income to total operating activities:
 
 
 
   
 
Depreciation and amortization
 
 
169,935
 
   
145,907
 
Deferred income taxes
 
 
13,397
 
   
(5,574
)
Share-based compensation expense
 
 
29,004
 
   
20,100
 
Gain on sale of facilities
 
 
(4,529
)
   
—  
 
Net change in assets and liabilities, net of acquisitions
 
 
(82,604
)
   
(89,877
)
Pension contributions
 
 
(2,505
)
   
(2,194
)
Other, net
 
 
8,996
 
   
(5,420
)
                 
Total operating activities
 
 
772,214
 
   
629,355
 
                 
Investing activities:
 
 
 
 
 
 
Additions to property, plant and equipment
 
 
(61,525
)
   
(47,488
)
Purchases of businesses, net of cash acquired
 
 
(122,149
)
   
(376,248
)
Proceeds from sale of facilities
 
 
8,263
 
   
717
 
Other, net
 
 
2,059
 
   
(1,234
)
                 
Total investing activities
 
 
(173,352
)
   
(424,253
)
                 
Financing activities:
 
 
 
 
 
 
Net change in short-term borrowings
 
 
(258,211
)
   
921
 
Proceeds from long-term borrowings
 
 
100,000
 
 
 
—  
 
Repayments of long-term borrowings
 
 
—  
 
   
(240,000
)
Repurchases of common stock
 
 
(6,613
)
   
(4,034
)
Cash dividends paid
 
 
(95,498
)
   
(97,027
)
Proceeds from stock option exercises
 
 
59,645
 
   
28,661
 
Other, net
 
 
(7,249
)
   
(5,749
)
                 
Total financing activities
 
 
(207,926
)
   
(317,228
)
                 
Effect of exchange rate changes on cash and cash equivalents
 
 
(9,535
)
   
(15,453
)
                 
Increase (decrease) in cash and cash equivalents
 
 
381,401
 
   
(127,579
)
Cash and cash equivalents:
 
 
 
   
 
Beginning of period
 
 
353,975
 
   
646,300
 
                 
End of period
 
$
735,376
 
  $
518,721
 
                 
 
 
 
 
See accompanying notes.
 
6
 

 
AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2019
(Unaudited)
1.
Basis of Presentation
 
 
 
 
 
 
 
The accompanying consolidated financial statements are unaudited. AMETEK, Inc. (the “Company”) believes that all adjustments (which primarily consist of normal recurring accruals) necessary for a fair presentation of the consolidated financial position of the Company at September 30, 2019, the consolidated results of its operations for the three and nine months ended September 30, 2019 and 2018 and its cash flows for the nine months ended September 30, 2019 and 2018 have been included. Quarterly results of operations are not necessarily indicative of results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes presented in the Company’s Annual Report on Form
 10-K
for the year ended December 31, 2018 as filed with the U.S. Securities and Exchange Commission.
As discussed below in Note 2, effective January 1, 2019, the Company adopted the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No.
 2016-02
(Topic 842),
Leases
(“ASU
 2016-02”)
using the effective date transition method. Amounts and disclosures set forth in this Form
 10-Q
reflect this change.
2.
Recent Accounting Pronouncements
 
 
 
 
 
 
 
In February 2016, the FASB issued ASU No.
 2016-02
Leases (ASC 842). In July 2018, the FASB issued ASU No.
 2018-10,
“Codification Improvements to Topic 842, Leases” (ASU
2018-10),
which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No.
 2018-11,
“Leases (Topic 842)—Targeted Improvements” (ASU
2018-11),
which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842. ASC 842 supersedes the lease accounting requirements in Accounting Standards Codification Topic 840, Leases (ASC 840). ASC 842 establishes a
right-of-use
model that requires a lessee to record a
right-of-use
(“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 on January 1, 2019 using the effective date transition method. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods.
The Company has elected certain practical expedients permitted under the transition guidance within ASC 842 to leases that commenced before January 1, 2019, including the package of practical expedients. The election of the package of practical expedients resulted in the Company not reassessing prior conclusions under ASC 840 related to lease identification, lease classification and initial direct costs for expired and existing leases prior to January 1, 2019. The Company did not elect the practical expedient to not record short-term leases on its consolidated balance sheet. The adoption of ASU
2016-02
did not have a significant impact on the Company’s consolidated results of operations or cash flows. Upon adoption, the Company recognized a ROU asset and lease liability of $192.4 million and $198.6 million, respectively. See Note 8.
In February 2018, the FASB issued ASU No.
 2018-02,
 Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
 (“ASU
 2018-02”).
 ASU
 2018-02
 addresses a specific consequence of the Tax Act by allowing an election to reclassify from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Act’s reduction of the U.S federal corporate income tax rate. ASU
 2018-02
 is effective for all entities for annual reporting periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal income tax rate in the Tax Act is recognized. The Company adopted ASU
2018-02
on January 1, 2019, and upon adoption, the Company did not elect to reclassify the stranded income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings.
In August 2018, the FASB issued ASU No.
 2018-13,
 Fair Value Measurement
 (“ASU
 2018-13”),
 which changes the fair value measurement disclosure requirements of ASC Topic 820,
 Fair Value Measurement
 (“ASC 820”), by eliminating, modifying and adding to those requirements. ASU
 2018-13
 also modifies the disclosure objective paragraphs of ASC 820 to
 
7
 

 
AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2019
(Unaudited)
 
eliminate (1) “at a minimum” from the phrase “an entity shall disclose at a minimum” and (2) other similar “open ended” disclosure requirements to promote the appropriate exercise of discretion by entities. ASU
 2018-13
 is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. The Company has not determined the impact ASU
 2018-13
 may have on the Company’s consolidated financial statement disclosures.
In August 2018, the FASB issued ASU No.
 2018-14,
 Compensation – Retirement Benefits – Defined Benefit Plans – General
 (“ASU
 2018-14”),
which changes the disclosure requirements of ASC Topic 715,
 Compensation – Retirement Benefits
, by eliminating, modifying and adding to certain of those requirements. ASU
 2018-14
 is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted and the amendments in this ASU should be applied on a retrospective basis to all periods presented. The Company has not determined the impact ASU
 2018-14
 may have on the Company’s consolidated financial statement disclosures.
In August 2018, the FASB issued ASU No.
 2018-15,
 Intangibles – Goodwill and Other –Internal-Use Software
 (“ASU
 2018-15”),
 that requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the
 internal-use
 software guidance in ASC Topic 350,
 Intangibles – Goodwill and Other
. ASU
 2018-15
 requires a customer to disclose the nature of its hosting arrangements that are service contracts and provide disclosures as if the deferred implementation costs were a separate, major depreciable asset class. ASU
 2018-15
 is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company has not determined the impact ASU
 2018-15
 may have on the Company’s consolidated results of operations, financial position, cash flows and financial statement disclosures.
3.
Revenues
 
 
 
 
 
 
 
The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective method. The cumulative adjustment made to the January 1, 2018 consolidated balance sheet for the adoption of ASC 606 was to increase Retained earnings by $4.2 million, increase Total assets by $7.9 million and increase Total liabilities by $3.7 million.
The outstanding contract asset and liability accounts were as follows:
                 
 
2019
 
 
2018
 
 
(In thousands)
 
Contract assets - January 1
  $
58,266
    $
32,658
 
Contract assets – September 30
   
78,010
     
60,037
 
                 
Change in contract assets – increase
   
19,744
     
27,379
 
                 
Contract liabilities – January 1
   
146,162
     
117,058
 
Contract liabilities – September 30
   
152,897
     
145,247
 
                 
Change in contract liabilities – increase
   
(6,735
)
 
   
(28,189
)
                 
Net change
 
$
13,009
 
  $
(810
)
                 
 
 
 
 
 
 
The net change for the nine months ended September 30, 2019 was primarily driven by the recognition of revenue as performance obligations were satisfied prior to billing and exceeded receipt of advance payments from customers. For the nine months ended September 30, 2019 and 2018, the Company recognized revenue
of $123.6 million and $95.0 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 September 30, 2019 and December 31, 2018, $8.7 million and $8.9 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.
 
8
 

 
AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2019
(Unaudited)
 
Applying the practical expedient available under ASC 606, the remaining performance obligations exceeding one year as of September 30, 2019 and December 31, 2018 were $196.6 million and $187.2 million, respectively. Remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within two to three years.
Geographic Areas
Information about the Company’s operations in different geographic areas is shown below. Net sales were attributed to geographic areas based on the location of the customer.
                                                 
 
Three Months Ended
   
Nine Months Ended
 
 
September 30, 2019
   
September 30, 2019
 
 
EIG
 
 
EMG
 
 
Total
 
 
EIG
 
 
EMG
 
 
Total
 
 
(In thousands)
 
United States
 
$
421,629
 
 
$
252,343
 
 
$
673,972
 
 
$
1,250,564
 
 
$
764,001
 
 
$
2,014,565
 
                                                 
International (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Kingdom
 
 
19,538
 
 
 
34,319
 
 
 
53,857
 
 
 
47,885
 
 
 
100,657
 
 
 
148,542
 
European Union countries
 
 
99,180
 
 
 
98,357
 
 
 
197,537
 
 
 
302,800
 
 
 
308,138
 
 
 
610,938
 
Asia
 
 
190,419
 
 
 
46,347
 
 
 
236,766
 
 
 
569,553
 
 
 
142,035
 
 
 
711,588
 
Other foreign countries
 
 
84,786
 
 
 
29,715
 
 
 
114,501
 
 
 
271,908
 
 
 
96,195
 
 
 
368,103
 
                                                 
Total international
 
 
393,923
 
 
 
208,738
 
 
 
602,661
 
 
 
1,192,146
 
 
 
647,025
 
 
 
1,839,171
 
                                                 
Consolidated net sales
 
$
815,552
 
 
$
461,081
 
 
$
1,276,633
 
 
$
2,442,710
 
 
$
1,411,026
 
 
$
3,853,736
 
                                                 
 
 
 
 
 
 
(1) Includes U.S. export sales of $317.6 million and $965.1 million for the three months ended and the nine months ended, respectively.
 
 
 
 
 
Information about the Company’s operations in different geographic areas is shown below. Net sales were attributed to geographic areas based on the location of the customer.
                                                 
 
Three Months Ended
   
Nine Months Ended
 
 
September 30, 2018
   
September 30, 2018
 
 
EIG
 
 
EMG
 
 
Total
 
 
EIG
 
 
EMG
 
 
Total
 
 
(In thousands)
 
United States
 
$
358,335
 
 
$
237,831
 
 
$
596,166
 
 
$
1,044,971
 
 
$
710,630
 
 
$
1,755,601
 
                                                 
International (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Kingdom
 
 
17,646
 
 
 
33,364
 
 
 
51,010
 
 
 
46,974
 
 
 
101,913
 
 
 
148,887
 
European Union countries
 
 
93,248
 
 
 
97,595
 
 
 
190,843
 
 
 
281,328
 
 
 
303,994
 
 
 
585,322
 
Asia
 
 
193,986
 
 
 
51,136
 
 
 
245,122
 
 
 
576,640
 
 
 
157,634
 
 
 
734,274
 
Other foreign countries
 
 
78,826