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Document and Company Information - USD ($)	12 Months Ended
Document and Company Information - USD ($)	Dec. 31, 2009	Jan. 29, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	AMETEK INC/
Entity Central Index Key	0001037868
Document Type	10-K
Document Period End Date	Dec. 31, 2009
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3,716,907,826
Entity Common Stock, Shares Outstanding		107,910,425

Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Consolidated Statement of Income [Abstract]
Net sales	$ 2,098,355	$ 2,531,135	$ 2,136,850
Operating expenses:
Cost of sales, excluding depreciation	1,435,953	1,730,086	1,444,514
Selling, general and administrative	254,143	322,552	263,472
Depreciation	42,209	45,843	42,290
Total operating expenses	1,732,305	2,098,481	1,750,276
Operating income	366,050	432,654	386,574
Other expenses:
Interest expense	(68,750)	(63,652)	(46,866)
Other, net	(2,667)	(2,786)	(3,264)
Income before income taxes	294,633	366,216	336,444
Provision for income taxes	88,863	119,264	108,424
Net income	$ 205,770	$ 246,952	$ 228,020
Basic earnings per share	$ 1.93	$ 2.33	$ 2.15
Diluted earnings per share	$ 1.91	$ 2.3	$ 2.12
Weighted average common shares outstanding:
Basic shares	106,788	106,148	105,832
Diluted shares	107,850	107,443	107,580

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$ 246,356	$ 86,980
Marketable securities	4,994	4,230
Receivables, less allowance for possible losses	331,383	406,012
Inventories	311,542	349,509
Deferred income taxes	30,669	30,919
Other current assets	44,486	76,936
Total current assets	969,430	954,586
Property, plant and equipment, net	310,053	307,908
Goodwill	1,277,291	1,240,052
Other intangibles, net of accumulated amortization	521,888	441,785
Investments and other assets	167,370	111,211
Total assets	3,246,032	3,055,542
Current liabilities:
Short-term borrowings and current portion of long-term debt	85,801	18,438
Accounts payable	191,779	203,742
Income taxes payable	13,345	31,649
Accrued liabilities	133,357	193,684
Total current liabilities	424,282	447,513
Long-term debt	955,880	1,093,243
Deferred income taxes	206,354	144,941
Other long-term liabilities	92,492	82,073
Total liabilities	1,679,008	1,767,770
Stockholders' equity:
Preferred stock, $0.01 par value; authorized: 5,000,000 shares; none issued	0	0
Common stock, $0.01 par value; authorized: 400,000,000 shares; issued: 2009 - 111,000,578 shares; 2008 - 110,188,937 shares	1,110	1,102
Capital in excess of par value	224,057	203,000
Retained earnings	1,500,471	1,320,470
Accumulated other comprehensive (loss)	(75,281)	(144,767)
Treasury stock: 2009 - 3,116,579 shares; 2008 - 3,461,541 shares	(83,333)	(92,033)
Total stockholders' equity	1,567,024	1,287,772
Total liabilities and stockholders' equity	$ 3,246,032	$ 3,055,542

Consolidated Statement of Stockholders Equity - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Statement [Line Items]
Beginning Balance	$ 1,287,772	$ 1,240,707
Preferred Stock, $0.01 par value	0	0
Net income	205,770	246,952	$ 228,020
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance	1,567,024	1,287,772	1,240,707
Preferred Stock, $0.01 par value
Statement [Line Items]
Beginning Balance	0	0	0
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance		0	0
Common Stock, $0.01 par value
Statement [Line Items]
Beginning Balance	1,102	1,097	1,085
Shares issued	8	5	12
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance	1,110	1,102	1,097
Capital in Excess of Par Value
Statement [Line Items]
Beginning Balance	203,000	174,450	134,001
Issuance of common stock under employee stock plans	3,459	3,474	15,455
Share-based compensation costs	13,502	20,186	15,530
Excess tax benefits from exercise of stock options	4,096	4,890	9,464
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance	224,057	203,000	174,450
Retained Earnings
Statement [Line Items]
Beginning Balance	1,320,470	1,099,111	902,379
Adoption of FIN 48	0	0	(5,901)
Net income	205,770	246,952	228,020
Cash dividends paid	(25,579)	(25,685)	(25,748)
Other	(190)	92	361
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance	1,500,471	1,320,470	1,099,111
Accumulated Other Comprehensive (Loss) Income
Statement [Line Items]
Beginning Balance	(144,767)	5,370
Unrealized holding gain (loss) on available-for-sale securities:
Total other comprehensive income (loss) for the year	69,486	(150,137)	38,922
Total comprehensive income for the year	275,256	96,815	266,942
Ending Balance	(75,281)	(144,767)	5,370
Foreign currency translation
Statement [Line Items]
Beginning Balance	(50,706)	7,331	(1,137)
Foreign currency translation:
Translation adjustments	38,357	(46,784)	6,056
Gain (loss) on net investment hedges, net of tax (expense) benefit of ($2,290), $6,058 and ($1,298) in 2009, 2008 and 2007, respectively	4,253	(11,253)	2,412
Total Foreign Currency Translation	42,610	(58,037)	8,468
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance	(8,096)	(50,706)	7,331
Defined benefit pension plans
Statement [Line Items]
Beginning Balance	(93,360)	(3,040)	(33,213)
Defined benefit pension plans:
Change in pension plans, net of tax (expense) benefit of ($15,830), $56,344 and ($14,141) in 2009, 2008 and 2007, respectively	26,239	(90,320)	30,173
Unrealized holding gain (loss) on available-for-sale securities:
Ending Balance	(67,121)	(93,360)	(3,040)
Unrealized holding gain (loss) on available-for-sale securities
Statement [Line Items]
Beginning Balance	(701)	1,079	798
Unrealized holding gain (loss) on available-for-sale securities:
Increase (decrease) during the year, net of tax benefit (expense) of $343, ($958), $151 in 2009, 2008 and 2007, respectively	637	(1,780)	281
Ending Balance	(64)	(701)	1,079
Treasury Stock
Statement [Line Items]
Beginning Balance	(92,033)	(39,321)	(37,241)
Issuance of common stock under employee stock plans	8,700	4,732	3,357
Unrealized holding gain (loss) on available-for-sale securities:
Purchase of treasury stock	0	(57,444)	(5,437)
Ending Balance	$ (83,333)	$ (92,033)	$ (39,321)

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Operating activities:
Net income	$ 205,770	$ 246,952	$ 228,020
Adjustments to reconcile net income to total operating activities:
Depreciation and amortization	65,500	63,261	52,665
Deferred income tax expense	5,768	29,742	4,769
Share-based compensation expense	13,502	20,186	15,530
Changes in assets and liabilities, net of acquisitions:
Decrease (increase) in receivables	87,146	6,636	(26,944)
Decrease (increase) in inventories and other current assets	83,622	(35,180)	194
(Decrease) increase in payables, accruals and income taxes	(91,622)	3,161	13,421
Increase (decrease) in other long-term liabilities	3,345	(1,907)	(7,153)
Pension contribution	(21,127)	(79,905)	(5,162)
Other	12,767	(5,681)	3,183
Total operating activities	364,671	247,265	278,523
Investing activities:
Additions to property, plant and equipment	(33,062)	(44,215)	(37,620)
Purchases of businesses, net of cash acquired	(72,919)	(463,012)	(300,569)
(Increase) decrease in marketable securities	(638)	6,323	(1,700)
Other	275	4,282	5,228
Total investing activities	(106,344)	(496,622)	(334,661)
Financing activities:
Net change in short-term borrowings	(13,013)	69,693	(162,589)
Additional long-term borrowings	1,466	430,000	370,000
Reduction in long-term borrowings	(80,817)	(232,835)	(26,553)
Repayment of life insurance policy loans	0	(21,394)	0
Repurchases of common stock	0	(57,444)	(5,437)
Cash dividends paid	(25,579)	(25,685)	(25,748)
Excess tax benefits from share-based payments	4,096	4,890	9,464
Proceeds from employee stock plans and other	11,328	6,238	14,961
Total financing activities	(102,519)	173,463	174,098
Effect of exchange rate changes on cash and cash equivalents	3,568	(7,265)	3,088
Increase (decrease) in cash and cash equivalents	159,376	(83,159)	121,048
Cash and cash equivalents:
Beginning of year	86,980	170,139	49,091
End of year	$ 246,356	$ 86,980	$ 170,139

Significant Accounting Policies

12 Months Ended

Dec. 31, 2009

Significant Accounting Policies [Abstract]

Significant Accounting Policies


1.	Significant Accounting Policies

Basis of Consolidation

The accompanying consolidated financial statements reflect the operations, financial position and cash flows of AMETEK, Inc. (the “Company”), and include the accounts of the Company and subsidiaries, after elimination of all intercompany transactions in the consolidation. The Company’s investments in 50% or less owned joint ventures are accounted for by the equity method of accounting. Such investments are not significant to the Company’s consolidated results of operations, financial position or cash flows.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash Equivalents, Securities and Other Investments

All highly liquid investments with maturities of three months or less when purchased are considered cash equivalents. At December 31, 2009 and 2008, all of the Company’s equity securities and fixed-income securities (primarily those of a captive insurance subsidiary) are classified as “available-for-sale,” although the Company may hold fixed-income securities until their maturity dates. Fixed-income securities generally mature within three years. The aggregate market value of equity and fixed-income securities at December 31, 2009 and 2008 was $13.2 million ($13.5 million amortized cost) and $11.9 million ($12.9 million amortized cost), respectively. The temporary unrealized gain or loss on such securities is recorded as a separate component of accumulated other comprehensive income (in stockholders’ equity), and is not significant. The Company had $0.2 million of other-than-temporary impairment losses in 2008. Certain of the Company’s other investments, which are not significant, are also accounted for by the equity method of accounting as discussed above.

Accounts Receivable

The Company maintains allowances for estimated losses resulting from the inability of specific customers to meet their financial obligations to the Company. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on the length of time specific receivables are past due based on past experience. The allowance for possible losses on receivables was $5.8 million and $8.5 million at December 31, 2009 and 2008, respectively. See Note 8.

Inventories

The Company uses the first-in, first-out (“FIFO”) method of accounting, which approximates current replacement cost, for 66% of its inventories at December 31, 2009. The last-in, first-out (“LIFO”) method of accounting is used to determine cost for the remaining 34% of the Company’s inventory at December 31, 2009. For inventories where cost is determined by the LIFO method, the excess of the FIFO value over the LIFO value was $20.8 million and $30.8 million at December 31, 2009 and 2008, respectively. The Company provides estimated inventory reserves for slow-moving and obsolete inventory based on current assessments about future demand, market conditions, customers who may be experiencing financial difficulties and related management initiatives.

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Expenditures for additions to plant facilities, or that extend their useful lives, are capitalized. The cost of minor tools, jigs and dies, and maintenance and repairs is charged to operations as incurred. Depreciation of plant and equipment is calculated principally on a straight-line basis over the estimated useful lives of the related assets. The range of lives for depreciable assets is generally three to ten years for machinery and equipment, five to 27 years for leasehold improvements and 25 to 50 years for buildings.

Revenue Recognition

The Company recognizes revenue on product sales in the period when the sales process is complete. This generally occurs when products are shipped to the customer in accordance with terms of an agreement of sale, under which title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable. For a small percentage of sales where title and risk of loss passes at point of delivery, the Company recognizes revenue upon delivery to the customer, assuming all other criteria for revenue recognition are met. The policy, with respect to sales returns and allowances, generally provides that the customer may not return products or be given allowances, except at the Company’s option. The Company has agreements with distributors that do not provide expanded rights of return for unsold products. The distributor purchases the product from the Company, at which time title and risk of loss transfers to the distributor. The Company does not offer substantial sales incentives and credits to its distributors other than volume discounts. The Company accounts for these sales incentives as a reduction of revenues when the sale is recognized in the income statement. Accruals for sales returns, other allowances and estimated warranty costs are provided at the time revenue is recognized based upon past experience. At December 31, 2009, 2008 and 2007, the accrual for future warranty obligations was $16.0 million, $16.1 million and $14.4 million, respectively. The Company’s expense for warranty obligations was $8.2 million in 2009, $12.2 million in 2008 and $11.3 million in 2007. The warranty periods for products sold vary widely among the Company’s operations, but for the most part do not exceed one year. The Company calculates its warranty expense provision based on past warranty experience and adjustments are made periodically to reflect actual warranty expenses.

Research and Development

Company-funded research and development costs are charged to operations as incurred and were $50.5 million in 2009, $57.5 million in 2008 and $52.9 million in 2007.

Shipping and Handling Costs

Shipping and handling costs are included in cost of sales and were $24.6 million in 2009, $34.0 million in 2008 and $27.5 million in 2007.

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 common stock options and restricted stock grants). The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share were as follows for the years ended December 31:

2009

2008

2007

(In thousands)

Weighted average shares:

Basic shares

106,788

106,148

105,832

Stock option and awards plans

1,062

1,295

1,748

Diluted shares

107,850

107,443

107,580

Financial Instruments and Foreign Currency Translation

Assets and liabilities of foreign operations are translated using exchange rates in effect at the balance sheet date and their results of operations are translated using average exchange rates for the year. Certain transactions of the Company and its subsidiaries are made in currencies other than their functional currency. Exchange gains and losses from those transactions are included in operating results for the year.

The Company makes infrequent use of derivative financial instruments. Forward contracts are entered into from time to time to hedge specific firm commitments for certain inventory purchases or export sales, thereby minimizing the Company’s exposure to raw material commodity price or foreign currency fluctuation. No forward contracts were outstanding at December 31, 2009 and 2008. During 2008, the Company was party to certain commodity price forward contracts pertaining to raw materials, which were not significant. These forward contracts were acquired as a part of a 2008 acquisition. In instances where transactions are designated as hedges of an underlying item, the gains and losses on those transactions are included in accumulated other comprehensive income (“AOCI”) within stockholders’ equity to the extent they are effective as hedges. The Company has designated certain foreign-currency-denominated long-term debt as hedges of the net investment in certain foreign operations. These net investment hedges are the Company’s British-pound-denominated long-term debt and Euro-denominated long-term debt, pertaining to certain European acquisitions whose functional currencies are either the British pound or the Euro. These acquisitions were financed by foreign-currency-denominated borrowings under the Company’s revolving credit facility and were subsequently refinanced with long-term private placement debt. These borrowings were designed to create net investment hedges in each of the foreign subsidiaries on their respective dates of acquisition. On the respective dates of acquisition, the Company designated the British pound- and Euro-denominated loans referred to above as hedging instruments to offset foreign exchange gains or losses on the net investment in the acquired business due to changes in the British pound and Euro exchange rates. These net investment hedges were evidenced by management’s documentation supporting the contemporaneous hedge designation on the acquisition dates. Any gain or loss on the hedging instrument following hedge designation (the debt), is reported in AOCI in the same manner as the translation adjustment on the investment based on changes in the spot rate, which is used to measure hedge effectiveness. As of December 31, 2009 and 2008, all net investment hedges were effective. At December 31, 2009, the translation gains on the net carrying value of the foreign-currency-denominated investments exceeded the translation losses on the carrying value of the underlying debt and the difference is included in AOCI. At December 31, 2008, the translation losses on the net carrying value of the foreign-currency-denominated investments exceeded the translation gains on the carrying value of the underlying debt and the difference is included in AOCI. An evaluation of hedge effectiveness is performed by the Company on an ongoing basis and any changes in the hedge are made as appropriate. See Note 4.

Share-Based Compensation

The Company accounts for share-based payments in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Compensation — Stock Compensation Topic 718. Accordingly, the Company expenses the fair value of awards made under its share-based plans. That cost is recognized in the consolidated financial statements over the requisite service period of the grants. See Note 11.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets with indefinite lives, primarily trademarks and trade names, are not amortized; rather, they are tested for impairment at least annually.

The Company identifies its reporting units at the component level, which is one level below our operating segments. Generally, goodwill arises from acquisitions of specific operating companies and is assigned to the reporting units based upon the reporting unit in which that operating company resides. Our reporting units are composed of the business units one level below our operating segment at which discrete financial information is prepared and regularly reviewed by segment management.

The Company principally relies on a discounted cash flow analysis to determine the fair value of each reporting unit, which considers forecasted cash flows discounted at an appropriate discount rate. The Company believes that market participants would use a discounted cash flow analysis to determine the fair value of its reporting units in a sales transaction. The annual goodwill impairment test requires the Company to make a number of assumptions and estimates concerning future levels of revenue growth, operating margins, depreciation, amortization and working capital requirements, which are based upon the Company’s long range plan. The Company’s long range plan is updated as part of its annual planning process and is reviewed and approved by management. The discount rate is an estimate of the overall after-tax rate of return required by a market participant whose weighted average cost of capital includes both equity and debt, including a risk premium. While the Company uses the best available information to prepare its cash flow and discount rate assumptions, actual future cash flows or market conditions could differ significantly resulting in future impairment charges related to recorded goodwill balances.

The impairment test for indefinite-lived intangibles other than goodwill (primarily trademarks and trade names) consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset as of the impairment testing date. The Company estimates the fair value of its indefinite-lived intangibles using the relief from royalty method. The relief from royalty method is measured as the discounted cash flow savings realized from owning such trademarks and trade names and not having to pay a royalty for their use.

The Company completed its required annual impairment tests in the fourth quarter of 2009, 2008 and 2007 and determined that the carrying values of goodwill and other intangible assets with indefinite lives were not impaired.

The Company evaluates impairment of its long-lived assets, other than goodwill and indefinite-lived intangible assets when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset group is considered impaired when the total projected undiscounted cash flows from such asset group are separately identifiable and are less than the carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset group. Fair market value is determined primarily using present value techniques based on projected cash flows from the asset group. Losses on long-lived assets held-for-sale, other than goodwill and indefinite-lived intangible assets, are determined in a similar manner, except that fair market values are reduced for disposal costs.

Intangible assets, other than goodwill, with definite lives are amortized over their estimated useful lives. Patents are being amortized over useful lives of four to 20 years. Customer relationships are being amortized over a period of two to 20 years. Miscellaneous other intangible assets are being amortized over a period of four to 20 years. The Company periodically evaluates the reasonableness of the estimated useful lives of these intangible assets.

Income Taxes

The Company’s annual provision for income taxes and determination of the related balance sheet accounts requires management to assess uncertainties, make judgments regarding outcomes and utilize estimates. The Company conducts a broad range of operations around the world and is therefore subject to complex tax regulations in numerous international taxing jurisdictions, resulting at times in tax audits, disputes and potential litigation, the outcome of which is uncertain. Management must make judgments currently about such uncertainties and determine estimates of the Company’s tax assets and liabilities. To the extent the final outcome differs, future adjustments to the Company’s tax assets and liabilities may be necessary. The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense.

The Company also is required to assess the realizability of its deferred tax assets, taking into consideration the Company’s forecast of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and amount of, valuation allowances against the Company’s deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowances may be required.

Recently Issued Financial Accounting Standards

12 Months Ended

Dec. 31, 2009

Recently Issued Financial Accounting Standards [Abstract]

Recently Issued Financial Accounting Standards


2.	Recently Issued Financial Accounting Standards

In January 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-06, Fair value Measurements and Disclosures (“ASU 2010-06”). ASU 2010-06 provides amendments that clarify existing disclosures and require new disclosures related to fair value measurements, particularly to provide greater disaggregated information on each class of assets and liabilities and more robust disclosures on transfers between levels 1 and 2 and activity in level 3 fair value measurements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about activity in level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2010-06 on our fair value measurement disclosures.

In October 2009, the FASB issued ASU No. 2009-14, Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”). ASU 2009-14 provides guidance for revenue arrangements that include both tangible products and software elements that are “essential to the functionality of the hardware.” ASU 2009-14 provides factors to help constituents determine what software elements are considered essential to the functionality of the tangible product. This guidance will now subject software-enabled products to other revenue guidance and disclosure requirements, such as guidance surrounding revenue arrangements with multiple-deliverables. ASU 2009-14 is effective for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010 and is not expected to have a significant impact on the Company’s consolidated results of operations, financial position and cash flows.

In October 2009, the FASB issued ASU No. 2009-13, Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”). ASU 2009-13 provides guidance on accounting and reporting for arrangements including multiple revenue-generating activities. ASU 2009-13 provides guidance for separating deliverables, measuring and allocating arrangement consideration to one or more units of accounting. ASU 2009-13 also requires significantly expanded disclosures to provide information about a vendor’s multiple-deliverable revenue arrangements and the judgments made by the vendor that affect the timing or amount of revenue recognition. ASU 2009-13 is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010 and is not expected to have a significant impact on the Company’s consolidated results of operations, financial position and cash flows.

In August 2009, the FASB issued ASU No. 2009-05, Measuring Liabilities at Fair Value (“ASU 2009-05”), which provides clarification on the application of fair value techniques when a quoted price in an active market for the identical liability is not available and clarifies that when estimating the fair value of a liability, the fair value is not adjusted to reflect the impact of contractual restrictions that prevent its transfer. ASU 2009-05 was effective on October 1, 2009 for the Company and the adoption did not have a significant impact on the Company’s consolidated results of operations, financial position and cash flows.

In June 2009, the FASB issued Financial Accounting Standards (“SFAS”) No. 168, The FASB Accounting Standards Codification^tm and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162 (“SFAS 168”). SFAS 168 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with GAAP in the United States (the “GAAP hierarchy”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. SFAS 168 was effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption of SFAS 168 did not have an impact on the Company’s consolidated results of operations, financial position and cash flows.

In May 2009, the FASB issued ASC Subsequent Events Topic 855, (“ASC 855”). ASC 855 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. ASC 855 was effective for interim and annual reporting periods ending after June 15, 2009. The adoption of ASC 855 did not have an impact on the Company’s consolidated results of operations, financial position and cash flows. The Company evaluated all events and transactions that occurred after December 31, 2009 up through February 25, 2010, the date the Company issued these financial statements. During this period, the Company did not have any material recognizable or non-recognizable subsequent events.

The Company accounts for business combinations in accordance with FASB ASC Business Combinations Topic 805 (“ASC 805”), which includes provisions adopted effective January 1, 2009. The accounting for business combinations retains the underlying concepts of the previously issued standard, but changes the method of applying the acquisition method in a number of significant aspects. These changes were effective on a prospective basis for business combinations for which the acquisition date is on or after January 1, 2009, with the exception of the accounting for valuation allowances on deferred taxes and acquired tax contingencies. Adjustments for valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to January 1, 2009 would also apply the revised accounting for business combination provisions. The adoption of certain provisions within ASC 805 effective January 1, 2009 did not have a significant impact on the Company’s consolidated results of operations, financial position or cash flows. However, depending on the nature of an acquisition or the quantity of acquisitions entered into after the adoption, ASC 805 may significantly impact the Company’s consolidated results of operations, financial position or cash flows and result in more earnings volatility and generally lower earnings due to, among other items, the expensing of transaction costs and restructuring costs of acquired companies.

In April 2009, the FASB issued ASC 820-10-65-4, Transition Related to FASB Staff Position FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“ASC 820-10-65-4”). ASC 820-10-65-4 amends ASC 820, and provides additional guidance for estimating fair value in accordance with ASC 820 when the volume and level of activity for the asset or liability have significantly decreased and also includes guidance on identifying circumstances that indicate a transaction is not orderly for fair value measurements. ASC 820-10-65-4 is applied prospectively with retrospective application not permitted. ASC 820-10-65-4 was effective for interim and annual periods ending after June 15, 2009. The adoption of ASC 820-10-65-4 did not have an impact on the Company’s consolidated results of operations, financial position and cash flows.

In April 2009, the FASB issued ASC 320-10-65-1, Transition Related to FASB Staff Position FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (“ASC 320-10-65-1”). ASC 320-10-65-1 amends previously issued standards to make the other-than-temporary impairments guidance more operational and to improve the presentation of other-than-temporary impairments in the financial statements. ASC 320-10-65-1 replaces the existing requirement that the entity’s management assert it has both the intent and ability to hold an impaired debt security until recovery with a requirement that management assert it does not have the intent to sell the security, and it is more likely than not it will not have to sell the security before recovery of its cost basis. ASC 320-10-65-1 provides increased disclosure about the credit and noncredit components of impaired debt securities that are not expected to be sold and also requires increased and more frequent disclosures regarding expected cash flows, credit losses and an aging of securities with unrealized losses. Although ASC 320-10-65-1 does not result in a change in the carrying amount of debt securities, it does require that the portion of an other-than-temporary impairment not related to a credit loss for a held-to-maturity security be recognized in a new category of other comprehensive income and be amortized over the remaining life of the debt security as an increase in the carrying value of the security. ASC 320-10-65-1 was effective for interim and annual periods ending after June 15, 2009. The adoption of ASC 320-10-65-1 did not have an impact on the Company’s consolidated results of operations, financial position and cash flows.

In April 2009, the FASB issued ASC 825-10-65-1, Transition Related to FASB Staff Position FAS 107-1 and Accounting Principles Board 28-1, Interim Disclosures about Fair Value of Financial Instruments (“ASC 825-10-65-1”). ASC 825-10-65-1 amends previously issued standards to require disclosures about fair value of financial instruments not measured on the balance sheet at fair value in interim financial statements as well as in annual financial statements. Prior to ASC 825-10-65-1, fair values for these assets and liabilities were only disclosed annually. ASC 825-10-65-1 applies to all financial instruments within the scope of ASC 825 and requires all entities to disclose the methods and significant assumptions used to estimate the fair value of financial instruments. ASC 825-10-65-1 was effective for interim periods ending after June 15, 2009. See Note 15.

Acquisitions

12 Months Ended

Dec. 31, 2009

Acquisitions [Abstract]

Acquisitions


6.	Acquisitions

The Company spent approximately $72.9 million in cash, net of cash acquired, to acquire High Standard Aviation in January 2009, a small acquisition of two businesses in India, Unispec Marketing Pvt. Ltd. and Thelsha Technical Services Pvt. Ltd., in September 2009 and Ameron Global in December 2009. High Standard Aviation is a provider of electrical and electromechanical, hydraulic and pneumatic repair services to the aerospace industry. Ameron Global is a manufacturer of highly engineered pressurized gas components and systems for commercial and aerospace customers and is also a leader in maintenance, repair and overhaul of fire suppression and oxygen supply systems. High Standard Aviation and Ameron Global are a part of EMG.

The operating results of the above acquisitions have been included in the Company’s consolidated results from the respective dates of acquisitions.

The purchase price and initial recording of the transactions for Ameron Global were based on preliminary valuation assessments and are subject to change. The following table represents the provisional allocation of the aggregate purchase price for the net assets of the above acquisitions based on their estimated fair value (in millions):


Property, plant and equipment	$	4.8
Goodwill		17.4
Other intangible assets		36.1
Net working capital and other		14.6

Total purchase price	$	72.9

The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the acquisitions as High Standard Aviation and Ameron Global broaden the global footprint of AMETEK’s aerospace maintenance, repair and overhaul business. No goodwill recorded as part of the 2009 acquisitions will be tax deductible in future years.

The Company is in the process of conducting third-party valuations of certain tangible and intangible assets acquired. Adjustments to the allocation of purchase price will be recorded when this information is finalized. Therefore, the allocation of the purchase price is subject to revision.

The valuations for the $36.1 million preliminarily assigned to other intangible assets have been or are currently being finalized by third-party appraisers. In connection with the finalization of the 2008 acquisitions, $192.9 million was assigned to intangible assets, which consists primarily of patents, technology and customer relationships with estimated useful lives ranging from five years to 20 years and tradenames with indefinite lives.

In 2008, the Company spent a total of approximately $463.0 million in cash, net of cash acquired, for six acquisitions and one small technology line. The acquisitions include Drake Air (“Drake”) and Motion Control Group (“MCG”) in February 2008, Reading Alloys in April 2008, Vision Research, Inc. in June 2008, the programmable power business of Xantrex Technology, Inc. (“Xantrex Programmable”) in August 2008 and Muirhead Aerospace Limited (“Muirhead”) in November 2008. Drake is a provider of heat-transfer repair services to the commercial aerospace industry and further expands the Company’s presence in the global aerospace maintenance, repair and overhaul (“MRO”) services industry. MCG is a leading global manufacturer of highly customized motors and motion control solutions for the medical, life sciences, industrial automation, semiconductor and aviation markets. MCG enhances the Company’s capability in providing precision motion technology solutions. Reading Alloys is a global leader in specialty titanium master alloys and highly engineered metal powders used in the aerospace, medical implant, military and electronics markets. Vision Research is a leading manufacturer of high-speed digital imaging systems used for motion capture and analysis in numerous test and measurement applications. Xantrex Programmable is a leader in alternating current and direct current programmable power supplies used to test electrical and electronic products. Muirhead is a leading manufacturer of motion technology products and a provider of avionics repair and overhaul services for the aerospace and defense markets. Drake, MCG, Reading Alloys and Muirhead are part of EMG and Vision Research and Xantrex Programmable are part of EIG.

Had the 2009 acquisitions been made at the beginning of 2009, unaudited pro forma net sales, net income and diluted earnings per share for the year ended December 31, 2009 would not have been materially different than the amounts reported.

Had the 2009 acquisitions and the 2008 acquisitions been made at the beginning of 2008, unaudited pro forma net sales, net income and diluted earnings per share would have been as follows:


	Year Ended December 31, 2008
	(In millions, except per share amount)

Net sales	$	2,734.6
Net income	$	255.5
Diluted earnings per share	$	2.38

Pro forma results are not necessarily indicative of the results that would have occurred if the acquisitions had been completed at the beginning of 2008.

In 2007, the Company spent $300.6 million in cash, net of cash acquired, for seven acquisitions and one small technology line. The acquisitions include Seacon Phoenix, subsequently renamed AMETEK SCP, Inc. (“SCP”), in April 2007, Advanced Industries, Inc. (“Advanced”), B&S Aircraft Parts and Accessories (“B&S”) and Hamilton Precision Metals (“Hamilton”) in June 2007, Cameca SAS (“Cameca”) in August 2007, the Repair & Overhaul Division of Umeco plc (“Umeco R&O”) in November 2007 and California Instruments Corporation (“California Instruments”) in December 2007. SCP provides undersea electrical interconnect subsystems to the global submarine market. Advanced manufactures starter generators, brush and brushless motors, vane-axial centrifugal blowers for cabin ventilation and linear actuators for the business jet, light jet and helicopter markets. B&S provides third-party MRO services, primarily for starter generators and hydraulic and fuel system components, for a variety of business aircraft and helicopter applications. Hamilton produces highly differentiated niche specialty metals used in medical implant devices and surgical instruments, electronic components and measurement devices for aerospace and other industrial markets. Cameca is a manufacturer of high-end elemental analysis systems used in advanced laboratory research, semiconductor and nanotechnology applications. Umeco R&O provides third-party MRO services for a variety of helicopters and commercial and regional aircraft throughout Europe. California Instruments is a leader in the niche market for programmable alternating current power sources used to test electrical and electronic products, with an especially strong position in the high-power segment. Advanced, B&S, Cameca and California Instruments are part of EIG and SCP, Hamilton and Umeco R&O are part of EMG.

Debt

12 Months Ended

Dec. 31, 2009

Debt [Abstract]

Debt


9.	Debt

Long-term debt consisted of the following at December 31:


	2009			2008
	(In thousands)

U.S. dollar 6.59% senior notes due September 2015	$	90,000		$	90,000
U.S. dollar 6.69% senior notes due December 2015		35,000			35,000
U.S. dollar 6.20% senior notes due December 2017		270,000			270,000
U.S. dollar 6.35% senior notes due July 2018		80,000			80,000
U.S. dollar 7.08% senior notes due September 2018		160,000			160,000
U.S. dollar 7.18% senior notes due December 2018		65,000			65,000
U.S. dollar 6.30% senior notes due December 2019		100,000			100,000
British pound 5.96% senior note due September 2010		80,815			72,960
British pound floating-rate term note due through December 2010		—			16,416
Euro 3.94% senior note due August 2015		71,582			69,842
British pound 5.99% senior note due November 2016		64,652			58,369
Revolving credit loan		—			65,569
Other, principally foreign		24,632			28,525

Total debt		1,041,681			1,111,681
Less: Current portion		(85,801	)		(18,438	)

Total long-term debt	$	955,880		$	1,093,243

Maturities of long-term debt outstanding at December 31, 2009 were as follows: $1.9 million in 2011; $3.6 million in 2012; $2.4 million in 2013; $1.8 million in 2014; $198.1 million in 2015; and $748.1 million in 2016 and thereafter.

In the fourth quarter of 2009, the Company paid in full a 10.5 million British pound ($16.9 million) floating-rate term note.

In the second quarter of 2009, the Company paid in full a 40 million British pound ($62.0 million) borrowing under the revolving credit facility.

In July 2008, the Company paid in full the $225 million 7.20% senior notes due July 2008 using the proceeds from borrowings under its existing revolving credit facility.

The second funding of the third quarter of 2007 private placement agreement to sell $450 million occurred in July 2008 for $80 million in aggregate principal amount of 6.35% senior notes due July 2018. The 2007 private placement carries a weighted average interest rate of 6.25%. The proceeds from the second funding of the notes were used to pay down a portion of the Company’s revolving credit facility.

In the third quarter of 2008, the Company completed a private placement agreement to sell $350 million in senior notes to a group of institutional investors. There were two funding dates for the senior notes. The first funding occurred in September 2008 for $250 million, consisting of $90 million in aggregate principal amount of 6.59% senior notes due September 2015 and $160 million in aggregate principal amount of 7.08% senior notes due September 2018. The second funding date occurred in December 2008 for $100 million, consisting of $35 million in aggregate principal amount of 6.69% senior notes due December 2015 and $65 million in aggregate principal amount of 7.18% senior notes due December 2018. The senior notes carry a weighted average interest rate of 6.93%. The proceeds from the senior notes were used to pay down a portion of the Company’s revolving credit facility.

In September 2005, the Company issued a 50 million Euro ($71.6 million at December 31, 2009) 3.94% senior note due August 2015. In November 2004, the Company issued a 40 million British pound ($64.7 million at December 31, 2009) 5.99% senior note due in November 2016. In September 2003, the Company issued a 50 million British pound ($80.8 million at December 31, 2009) 5.96% senior note due in September 2010.

The Company had an accounts receivable securitization facility agreement with a wholly owned, special-purpose subsidiary and the special-purpose subsidiary had a receivables sale agreement with a bank, whereby it could sell to a third party up to $100.0 million of its trade accounts receivable on a revolving basis. The securitization facility was a financing vehicle utilized by the Company previously because it offered attractive rates relative to other financing sources. When borrowings were outstanding under the facility, all securitized accounts receivable and related debt were reflected on the Company’s consolidated balance sheet.

The special-purpose subsidiary was the servicer of the accounts receivable under the securitization facility. The accounts receivable securitization facility was not renewed by the Company in May 2009. Interest rates on amounts drawn down were based on prevailing market rates for short-term commercial paper plus a program fee. The Company also paid a commitment fee on any unused commitments under the securitization facility. The Company’s accounts receivable securitization was accounted for as a secured borrowing.

At December 31, 2008, the Company had no borrowings outstanding on the accounts receivable securitization. Interest expense under this facility was not significant. The weighted average interest rate when borrowings were outstanding under the accounts receivable securitization during 2008 was 3.6%.

The Company’s revolving credit facility’s total borrowing capacity is $550 million, which includes an accordion feature that permits the Company to request up to an additional $100 million in revolving credit commitments at any time during the life of the revolving credit agreement under certain conditions. The term of the facility is June 2012.

The revolving credit facility places certain restrictions on allowable additional indebtedness. At December 31, 2009, the Company had available borrowing capacity of $532.2 million under its $550 million revolving bank credit facility, which includes an accordion feature allowing $100 million of additional borrowing capacity.

Interest rates on outstanding loans under the revolving credit facility are at the applicable London Interbank Offered Rate (“LIBOR”) rate plus a negotiated spread, or at the U.S. prime rate. At December 31, 2009, the Company had no borrowings outstanding under the revolving credit facility. At December 31, 2008, the Company had $65.6 million borrowings outstanding under the revolving credit facility, of which $58.4 million related to 40 million of British pound borrowings under the revolver. The weighted average interest rate on the revolving credit facility for the years ended December 31, 2009 and 2008 was 0.60% and 2.81%, respectively. The Company had outstanding letters of credit totaling $19.8 million and $15.5 million at December 31, 2009 and 2008, respectively.

The private placement, the floating-rate term loan, the senior notes and the revolving credit facility are subject to certain customary covenants, including financial covenants that, among other things, require the Company to maintain certain debt-to-EBITDA and interest coverage ratios. The Company was in compliance with all provisions of the debt arrangements at December 31, 2009.

Foreign subsidiaries of the Company had available credit facilities with local foreign lenders of $50.3 million at December 31, 2009. Foreign subsidiaries had debt outstanding at December 31, 2009 totaling $24.6 million, including $19.6 million reported in long-term debt.

The weighted average interest rate on total debt outstanding at December 31, 2009 and 2008 was 6.4% and 6.2%, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2009

Share-Based Compensation [Abstract]

Share-Based Compensation


11.	Share-Based Compensation

Under the terms of the Company’s stockholder-approved share-based plans, incentive and non-qualified stock options and restricted stock awards have been, and may be, issued to the Company’s officers, management-level employees and members of its Board of Directors. Employee and non-employee director stock options generally vest at a rate of 25% per year, beginning one year from the date of the grant, and restricted stock awards generally have a four-year cliff vesting. Options primarily have a maximum contractual term of seven years. At December 31, 2009, 6.9 million shares of Company common stock were reserved for issuance under the Company’s share-based plans, including 4.4 million shares for stock options outstanding.

The Company issues previously unissued shares when options are exercised and shares are issued from treasury stock upon the award of restricted stock.

The Company measures and records compensation expense related to all stock awards by recognizing the grant date fair value of the awards over their requisite service periods in the financial statements. For grants under any of the Company’s plans that are subject to graded vesting over a service period, the Company recognizes expense on a straight-line basis over the requisite service period for the entire award.

The fair value of each option grant is estimated on the date of grant 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 options granted during the years indicated:


	2009			2008			2007

Expected stock volatility		25.8	%		18.4	%		22.4	%
Expected life of the options (years)		4.9			4.7			4.7
Risk-free interest rate		1.89	%		2.60	%		4.53	%
Expected dividend yield		0.73	%		0.49	%		0.66	%
Black-Scholes-Merton fair value per option granted	$	7.80		$	9.58		$	9.58

Expected stock volatility is based on the historical volatility of the Company’s stock. The Company used historical exercise data to estimate the options’ expected life, which represents the period of time that the options granted are expected to be outstanding. Management anticipates that the future option holding periods will be similar to the historical option holding periods. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. Compensation expense recognized for all share-based awards is net of estimated forfeitures. The Company’s estimated forfeiture rates are based on its historical experience.

Total share-based compensation expense was as follows for the years ended December 31:


	2009			2008			2007
	(In thousands)

Stock option expense	$	6,297		$	6,300		$	5,884
Restricted stock expense		7,205			13,886			9,646

Total pre-tax expense		13,502			20,186			15,530
Related tax benefit		(4,223	)		(3,990	)		(4,180	)

Reduction of net income	$	9,279		$	16,196		$	11,350

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

The following is a summary of the Company’s stock option activity and related information for the year ended December 31, 2009:


						Weighted Average
				Weighted Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Life		Intrinsic Value
	(In thousands)					(Years)		(In millions)

Outstanding at the beginning of the year		4,035		$	28.01
Granted		1,320			32.72
Exercised		(812	)		14.50
Forfeited		(75	)		38.33
Expired		(62	)		40.42

Outstanding at the end of the year		4,406		$	31.56		4.1	$	36.3

Exercisable at the end of the year		2,179		$	26.23		2.5	$	27.9

The aggregate intrinsic value of options exercised during 2009, 2008 and 2007 was $15.5 million, $13.3 million and $32.2 million, respectively. The total fair value of the stock options vested during 2009, 2008 and 2007 was $5.4 million, $5.6 million and $5.7 million, respectively.

The following is a summary of the status of the Company’s nonvested options outstanding for the year ended December 31, 2009:


				Weighted Average
				Grant Date
	Shares			Fair Value
	(In thousands)

Nonvested options outstanding at the beginning of the year		1,612		$	9.39
Granted		1,320			7.80
Vested		(630	)		9.11
Forfeited		(75	)		8.97

Nonvested options outstanding at the end of the year		2,227		$	8.54

Expected future pre-tax compensation expense relating to the 2.2 million nonvested options outstanding as of December 31, 2009 is $13.1 million, which is expected to be recognized over a weighted average period of approximately two years.

The fair value of restricted shares under the Company’s restricted stock arrangement is determined by the product of the number of shares granted and the grant date market price of the Company’s common stock. Upon the grant of restricted stock, the fair value of the restricted shares (unearned compensation) at the date of grant is charged as a reduction of capital in excess of par value in the Company’s consolidated balance sheet and is amortized to expense on a straight-line basis over the vesting period, which is the same as the calculated derived service period as determined on the grant date.

Restricted stock awards are subject to accelerated vesting due to certain events, including doubling of the grant price of the Company’s common stock as of the close of business during any five consecutive trading days. On May 19, 2008, the April 27, 2005 grant of 706,605 shares of restricted stock vested under this accelerated vesting provision. The pre-tax charge to income due to the accelerated vesting of these shares was $7.8 million ($7.3 million net after-tax charge) for the year ended December 31, 2008.

The following is a summary of the status of the Company’s nonvested restricted stock outstanding for the year ended December 31, 2009:


				Weighted Average
				Grant Date
	Shares			Fair Value
	(In thousands)

Nonvested restricted stock outstanding at the beginning of the year		608		$	39.34
Granted		375			32.74
Vested		(23	)		31.58
Forfeited		(43	)		39.27

Nonvested restricted stock outstanding at the end of the year		917		$	36.95

The total fair value of the restricted stock that vested was $17.8 million in 2008, and 2009 and 2007 were not significant. The weighted average fair value of restricted stock granted per share during 2009 and 2008 was $32.74 and $48.38, respectively. Expected future pre-tax compensation expense related to the 0.9 million nonvested restricted shares outstanding as of December 31, 2009 is $17.8 million, which is expected to be recognized over a weighted average period of approximately two years.

Under a Supplemental Executive Retirement Plan (“SERP”) in 2009, the Company reserved 14,214 shares of common stock. Reductions for retirements and terminations were 30,036 shares in 2009. The total number of shares of common stock reserved under the SERP was 266,310 as of December 31, 2009. Charges to expense under the SERP are not significant in amount and are considered pension expense with the offsetting credit reflected in capital in excess of par value.

Income Taxes

12 Months Ended

Dec. 31, 2009

Income Taxes [Abstract]

Income Taxes


13.	Income Taxes

The components of income before income taxes and the details of the provision for income taxes were as follows for the years ended December 31:


	2009			2008			2007
	(In thousands)

Income before income taxes:
Domestic	$	207,831		$	260,464		$	244,550
Foreign		86,802			105,752			91,894

Total	$	294,633		$	366,216		$	336,444

Provision for income taxes:
Current:
Federal	$	58,247		$	52,581		$	66,386
Foreign		22,123			29,889			28,929
State		2,725			7,052			8,340

Total current		83,095			89,522			103,655

Deferred:
Federal		7,024			28,920			4,751
Foreign		(1,464	)		(1,378	)		(2,036	)
State		208			2,200			2,054

Total deferred		5,768			29,742			4,769

Total provision	$	88,863		$	119,264		$	108,424

Significant components of deferred tax (asset) liability were as follows at December 31:


	2009			2008
	(In thousands)

Current deferred tax (asset) liability:
Reserves not currently deductible	$	(19,437	)	$	(20,885	)
Share-based compensation		(3,870	)		(1,984	)
Net operating loss carryforwards		(2,829	)		(1,107	)
Foreign tax credit carryforwards		(3,360	)		(3,360	)
Other		(1,173	)		(3,583	)

Net current deferred tax asset	$	(30,669	)	$	(30,919	)

Noncurrent deferred tax (asset) liability:
Differences in basis of property and accelerated depreciation	$	22,285		$	24,442
Reserves not currently deductible		(19,913	)		(17,815	)
Pensions		31,453			7,454
Differences in basis of intangible assets and accelerated amortization		188,045			136,417
Net operating loss carryforwards		(6,513	)		(11,950	)
Share-based compensation		(9,893	)		(9,084	)
Other		(3,578	)		4,268

		201,886			133,732
Less: Valuation allowance		4,468			11,209

Net noncurrent deferred tax liability		206,354			144,941

Net deferred tax liability	$	175,685		$	114,022

The Company’s effective tax rate of the provision for income taxes reconciles to the U.S. Federal statutory rate as follows for the years ended December 31:


	2009			2008			2007

U.S. Federal statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		0.4			1.5			1.9
Foreign operations, net*		(4.2	)		(3.0	)		(4.6	)
Other		(1.0	)		(0.9	)		(0.1	)

Consolidated effective tax rate		30.2	%		32.6	%		32.2	%


*		Includes the effects of statutory tax rate reductions in Italy, the United Kingdom and Germany during 2007.

As of December 31, 2009, the Company had no provision for U.S. deferred income taxes on the undistributed earnings of its foreign subsidiaries, which total approximately $395 million. If the Company were to distribute those earnings to the United States, the Company would be subject to U.S. income taxes based on the excess of the U.S. statutory rate over statutory rates in the foreign jurisdiction and withholding taxes payable to the various foreign countries. Determination of the amount of the unrecognized deferred income tax liability on these undistributed earnings is not practicable.

At December 31, 2009, the Company had tax benefits of $9.3 million related to net operating loss carryforwards, which will be available to offset future income taxes payable, subject to certain annual or other limitations based on foreign and U.S. tax laws. This amount includes net operating loss carryforwards of $3.7 million for federal income tax purposes with a valuation allowance of $3.3 million, $3.6 million for state income tax purposes with a valuation allowance of $0.2 million, and $2.0 million for foreign locations with no valuation allowance. These net operating loss carryforwards, if not used, will expire between 2010 and 2032. As of December 31, 2009, the Company had $3.4 million of U.S. foreign tax credit carryforwards.

The Company maintains a valuation allowance to reduce certain deferred tax assets to amounts that are more likely than not to be realized. This allowance primarily relates to the deferred tax assets established for net operating loss carryforwards. In 2009, the Company recorded a decrease of $6.7 million in the valuation allowance primarily related to the utilization and expiration of net operating loss carryforwards.

At December 31, 2009, the Company had gross unrecognized tax benefits of $26.5 million, of which $25.6 million would impact the effective tax rate if recognized. At December 31, 2008, the Company had gross unrecognized tax benefits of $18.6 million, all of which would impact the effective tax rate if recognized.

The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense. At December 31, 2009 and 2008, the Company reported $5.5 million and $2.3 million, respectively, in the aggregate related to interest and penalty exposure as accrued income tax expense in the consolidated balance sheet. During 2009, 2008 and 2007, the Company recognized $0.7 million of expense, $0.8 million of income and $1.5 million of expense, respectively, of interest and penalties in the income statement.

The most significant tax jurisdiction for the Company is the United States. The Company files income tax returns in various state and foreign tax jurisdictions, in some cases for multiple legal entities per jurisdiction. Generally, the Company has open tax years subject to tax audit on average of between three and six years in these jurisdictions. In 2009, the Internal Revenue Service (“IRS”) completed the examination of the Company’s U.S. income tax returns for 2005 and is currently examining the Company’s U.S. income tax returns for 2006 and 2007. In 2009, the Company concluded an exam in Germany for the period 2004 through 2006. The Company has not materially extended any other statutes of limitation for any significant location and has reviewed and accrued for, where necessary, tax liabilities for open periods. Tax years in certain state and foreign jurisdictions remain subject to examination; however the uncertain tax positions related to these jurisdictions are not considered material.

During 2009, the Company added $15.9 million of tax, interest and penalties related to 2009 activity for identified uncertain tax positions and reversed $4.8 million of tax and interest related to statute expirations and settlement of prior uncertain positions. During 2008, the Company added $11.6 million of tax, interest and penalties related to 2008 activity for identified uncertain tax positions and reversed $16.5 million of tax and interest related to statute expirations and settlement of prior uncertain positions.

The following is a reconciliation of the liability for uncertain tax positions at December 31:


	2009			2008			2007
	(In millions)

Balance at the beginning of the year	$	18.6		$	22.7		$	24.9
Additions for tax positions related to the current year		8.8			0.9			1.3
Additions for tax positions of prior years		2.5			10.1			—
Reductions for tax positions of prior years		(1.4	)		(4.2	)		(3.2	)
Reductions related to settlements with taxing authorities		(2.0	)		(10.8	)		—
Reductions due to statute expirations		—			(0.1	)		(0.3	)

Balance at the end of the year	$	26.5		$	18.6		$	22.7

The additions above primarily reflect the increase in tax liabilities for uncertain tax positions related to certain foreign activities and for research and development credits, while the reductions above reflect the settlement of an IRS audit and amended filings. At December 31, 2009, tax, interest and penalties of $13.7 million are classified as a noncurrent liability. The net increase in uncertain tax positions for the year ending December 31, 2009 resulted in an increase to income tax expense of $0.8 million.

Retirement Plans and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2009

Retirement Plans and Other Postretirement Benefits [Abstract]

Retirement Plans and Other Postretirement Benefits


14.	Retirement Plans and Other Postretirement Benefits

Retirement and Pension Plans

The Company sponsors several retirement and pension plans covering eligible salaried and hourly employees. The plans generally provide benefits based on participants’ years of service and/or compensation. The following is a brief description of the Company’s retirement and pension plans.

The Company maintains contributory and noncontributory defined benefit pension plans. Benefits for eligible salaried and hourly employees under all defined benefit plans are funded through trusts established in conjunction with the plans. The Company’s funding policy with respect to its defined benefit plans is to contribute amounts that provide for benefits based on actuarial calculations and the applicable requirements of U.S. federal and local foreign laws. The Company estimates that it will make both required and discretionary cash contributions of approximately $3 million to $5 million to its worldwide defined benefit pension plans in 2010.

The Company uses a measurement date of December 31 (its fiscal year end) for its U.S. and foreign defined benefit pension plans.

The Company sponsors a 401(k) retirement and savings plan for eligible U.S. employees. Participants in the savings plan may contribute a portion of their compensation on a before-tax basis. The Company matches employee contributions on a dollar-for-dollar basis up to six percent of eligible compensation or a maximum of $1,200 per participant.

The Company’s retirement and savings plan has a defined contribution retirement feature principally to cover U.S. salaried employees joining the Company after December 31, 1996. Under the retirement feature, the Company makes contributions for eligible employees based on a pre-established percentage of the covered employee’s salary subject to pre-established vesting. Employees of certain of the Company’s foreign operations participate in various local defined contribution plans.

The Company also has a defined contribution retirement plan for certain of its U.S. acquired businesses for the benefit of eligible employees. Company contributions are made for each participant up to a specified percentage, not to exceed six percent of the participant’s base compensation.

The Company has nonqualified unfunded retirement plans for its Directors and certain retired employees. It also provides supplemental retirement benefits, through contractual arrangements and/or a SERP covering certain current and former executives of the Company. These supplemental benefits are designed to compensate the executive for retirement benefits that would have been provided under the Company’s primary retirement plan, except for statutory limitations on compensation that must be taken into account under those plans. The projected benefit obligations of the SERP and the contracts will primarily be funded by a grant of shares of the Company’s common stock upon retirement or termination of the executive. The Company is providing for these obligations by charges to earnings over the applicable periods.

The following tables set forth the changes in net projected benefit obligation and the fair value of plan assets for the funded and unfunded defined benefit plans for the years ended December 31:

U.S. Defined Benefit Pension Plans:


	2009			2008
	(In thousands)

Change in projected benefit obligation (“PBO”):
Net projected benefit obligation at the beginning of the year	$	348,475		$	356,107
Service cost		3,278			3,783
Interest cost		22,395			21,724
Actuarial losses (gains)		26,620			(10,459	)
Gross benefits paid		(23,861	)		(22,793	)
Plan amendments and other		—			113

Net projected benefit obligation at the end of the year	$	376,907		$	348,475

Change in plan assets:
Fair value of plan assets at the beginning of the year	$	354,851		$	418,317
Actual return on plan assets		81,150			(111,558	)
Employer contributions		18,373			70,885
Gross benefits paid		(23,861	)		(22,793	)

Fair value of plan assets at the end of the year	$	430,513		$	354,851

Foreign Defined Benefit Pension Plans:


	2009			2008
	(In thousands)

Change in projected benefit obligation:
Net projected benefit obligation at the beginning of the year	$	88,166		$	129,044
Service cost		1,238			2,044
Interest cost		5,844			6,825
Acquisitions		—			—
Foreign currency translation adjustment		9,371			(40,004	)
Employee contributions		404			600
Actuarial losses (gains)		9,532			(17,201	)
Gross benefits paid		(3,473	)		(3,682	)
Effect of elimination of early measurement date		—			1,309
Other		(475	)		9,231

Net projected benefit obligation at the end of the year	$	110,607		$	88,166

Change in plan assets:
Fair value of plan assets at the beginning of the year	$	84,817		$	125,213
Actual return on plan assets		19,000			(20,126	)
Employer contributions		2,754			9,021
Employee contributions		404			600
Foreign currency translation adjustment		9,001			(38,633	)
Gross benefits paid		(3,473	)		(3,682	)
Effect of elimination of early measurement date		—			3,193
Other		—			9,231

Fair value of plan assets at the end of the year	$	112,503		$	84,817

The amounts included in the Effect of elimination of early measurement date in the preceding tables reflect the impact of the change in measurement date for the three United Kingdom-based defined benefit pension plans.

The accumulated benefit obligation (“ABO”) consisted of the following at December 31:

U.S. Defined Benefit Pension Plans:


	2009		2008
	(In thousands)

Funded plans	$	359,516	$	333,468
Unfunded plans		4,802		4,746

Total	$	364,318	$	338,214

Foreign Defined Benefit Pension Plans:


	2009		2008
	(In thousands)

Funded plans	$	98,886	$	80,149
Unfunded plans		1,344		1,179

Total	$	100,230	$	81,328

Weighted average assumptions used to determine benefit obligations at December 31:


	2009			2008

U.S. Defined Benefit Pension Plans:

Discount rate		5.90	%		6.50	%
Rate of compensation increase (where applicable)		3.75	%		3.75	%

Foreign Defined Benefit Pension Plans:

Discount rate		5.98	%		6.09	%
Rate of compensation increase (where applicable)		2.98	%		2.98	%

For the Company’s U.S. defined benefit pension plans, the asset allocation percentages at December 31, 2009 and 2008 and the target allocation percentages for 2010, by asset category, are as follows:

U.S. Defined Benefit Pension Plans:


			Percent of Plan Assets
	Target Allocation		at December 31,
Asset Category	2010		2009			2008

Equity securities		40%-60%		52	%		58	%
Fixed income securities		30%-60%		43			31
Other*		0%-15%		5			11

Total				100	%		100	%


*		Amounts in 2009 and 2008 include cash and cash equivalents and an approximate 1% and 10% investment in alternative assets consisting of hedge funds, respectively.

A summary of the fair value of plan assets for U.S. plans at December 31, 2009 and 2008 was as follows:


	2009						2008
Asset Category	Total		Level 1		Level 2		Total		Level 1		Level 2
	(In thousands)

Cash and temporary investments	$	2,936	$	2,936	$	—	$	51,305	$	51,305	$	—
Equity securities:
AMETEK common stock		25,973		25,973		—		20,519		20,519		—
Diversified common stocks		111,951		111,951		—		77,390		77,390		—
Diversified mutual funds		85,374		—		85,374		79,622		44,177		35,445
Real estate investment trust		—		—		—		652		652		—
Fixed income securities and other:
U.S. Government and investment grade		78,849		62,531		16,318		27,166		27,166		—
Global asset allocation and other		56,319		—		56,319		23,570		23,570		—
Diversified mutual funds		50,153		50,153		—		57,217		57,217		—
Hedge funds		18,958		—		—		17,410		—		—

Total investments	$	430,513	$	253,544	$	158,011	$	354,851	$	301,996	$	35,445

Level 1 investments are unadjusted, observable inputs from active markets. Level 2 investments are equity funds and fixed income funds that are valued by the vendor using observable market inputs. Hedge funds are considered level 3 investments as their values are determined by the sponsor using unobservable market data.

The table below sets forth a summary of changes of the U.S. plans’ assets fair value using significant unobservable inputs (level 3) for the year ended December 31, 2009.


	Hedge Funds
	(In thousands)

Balance, January 1, 2009	$	17,410
Actual return on assets:
Unrealized gains relating to instruments still held at the end of the year		1,548
Realized gains (losses) relating to assets sold during the year		—
Purchases, sales, issuances and settlements, net		—

Balance, December 31, 2009	$	18,958

The expected long-term rate of return on these plan assets was 8.25% in 2009 and 2008. Equity securities included 679,200 shares of AMETEK, Inc. common stock with a market value of $26.0 million (6.0% of total plan investment assets) at December 31, 2009 and 679,200 shares of AMETEK, Inc. common stock with a market value of $20.5 million (5.8% of total plan investment assets) at December 31, 2008.

The objectives of the AMETEK, Inc. U.S. defined benefit plans’ investment strategy are to maximize the plans’ funded status and minimize Company contributions and plan expense. Because the goal is to optimize returns over the long term, an investment policy that favors equity holdings has been established. Since there may be periods of time where both equity and fixed-income markets provide poor returns, an allocation to alternative assets may be made to improve the overall portfolio’s diversification and return potential. The Company periodically reviews its asset allocation, taking into consideration plan liabilities, plan benefit payment streams and the investment strategy of the pension plans. The actual asset allocation is monitored frequently relative to the established targets and ranges and is rebalanced when necessary.

The equity portfolio is diversified by market capitalization and style. The equity portfolio also includes an international component.

The objective of the fixed-income portion of the pension assets is to provide interest rate sensitivity for a portion of the assets and to provide diversification. The fixed-income portfolio is diversified within certain quality and maturity guidelines in an attempt to minimize the adverse effects of interest rate fluctuations.

Other than for investments in alternative assets, described in the footnote to the table above, certain investments are prohibited. Prohibited investments include venture capital, private placements, unregistered or restricted stock, margin trading, commodities, short selling and rights and warrants. Foreign currency futures, options and forward contracts may be used to manage foreign currency exposure.

For the Company’s foreign defined benefit pension plans, the asset allocation percentages at December 31, 2009 and 2008 and the target allocation percentages for 2010, by asset category, are as follows:

Foreign Defined Benefit Pension Plans:


			Percent of Plan Assets
	Target Allocation		at December 31,
Asset Category	2010		2009			2008

Cash		0%-5%		3	%		4	%
Diversified mutual equity funds		70%-90%		71			61
Real estate		10%-20%		2			—
Diversified mutual bond funds		0%-5%		15			25
Life insurance		0%-10%		9			10


Total				100	%		100	%

A summary of the fair value of plan assets for foreign defined benefit pension plans at December 31, 2009 and 2008 was as follows:


	2009				2008
Asset Category	Total		Level 2		Total		Level 2
	(In thousands)

Cash	$	3,148	$	3,148	$	3,453	$	3,453
Diversified mutual equity funds		80,271		80,271		51,404		51,404
Real estate		2,379		2,379		207		207
Diversified mutual bond funds		16,958		16,958		21,114		21,114
Life insurance		9,747		—		8,639		—

Total investments	$	112,503	$	102,756	$	84,817	$	76,178

Level 2 investments are equity funds, real estate funds and fixed income funds that are valued by the vendor using observable market inputs. Life insurance assets are considered level 3 investments as their values are determined by the sponsor using unobservable market data.

The table below sets forth a summary of changes of the foreign plans’ assets fair value using significant unobservable inputs (level 3) for the year ended December 31, 2009.


	Life Insurance
	(In thousands)

Balance, January 1, 2009	$	8,639
Actual return on assets:
Unrealized gains relating to instruments still held at the end of the year		1,108
Realized gains (losses) relating to assets sold during the year		—
Purchases, sales, issuances and settlements, net		—

Balance, December 31, 2009	$	9,747

The objective of AMETEK, Inc.’s foreign defined benefit plans’ investment strategy is to maximize the long-term rate of return on plan investments, subject to a reasonable level of risk. Liability studies are also performed on a regular basis to provide guidance in setting investment goals with an objective to balance risks against the current and future needs of the plans. The trustees consider the risk associated with the different asset classes, relative to the plans’ liabilities and how this can be affected by diversification, and the relative returns available on equities, fixed-income investments, real estate and cash. Also, the likely volatility of those returns and the cash flow requirements of the plans are considered. It is expected that equities will outperform fixed-income investments over the long term. However, the trustees recognize the fact that fixed-income investments may better match the liabilities for pensioners. Because of the relatively young active employee group covered by the plans and the immature nature of the plans, the trustees have chosen to adopt an asset allocation strategy more heavily weighted toward equity investments. This asset allocation strategy will be reviewed, from time to time, in view of changes in market conditions and in the plans’ liability profile.

The assumption for the expected return on plan assets was developed based on a review of historical investment returns for the investment categories for the defined benefit pension assets. This review also considered current capital market conditions and expectations of projected future investment returns. The estimates of future capital market returns by asset category are lower than the actual long-term historical returns. The current low interest rate environment also influences this outlook. Therefore, the assumed rate of return for U.S. plans remains at 8.25% and foreign plans are slightly lower at 6.97% for 2010.

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and pension plans with an accumulated benefit obligation in excess of plan assets were as follows at December 31:

U.S. Defined Benefit Pension Plans:


	Projected Benefit				Accumulated Benefit
	Obligation Exceeds				Obligation Exceeds
	Fair Value of Assets				Fair Value of Assets
	2009		2008		2009		2008
	(In thousands)

Projected benefit obligation	$	4,802	$	4,746	$	4,802	$	4,746
Fair value of plan assets		—		—		—		—

Foreign Defined Benefit Pension Plans:

Projected Benefit

Accumulated Benefit

Obligation Exceeds

Fair Value of Assets

2009

2008

2009

2008

(In thousands)

Projected benefit obligation

49,561

40,755

1,911

1,555

Fair value of plan assets

46,049

35,898

406

197

The following table provides the amounts recognized in the consolidated balance sheet at December 31:


	2009			2008
	(In thousands)

Funded status asset (liability):
Fair value of plan assets	$	543,016		$	439,668
Projected benefit obligation		(487,514	)		(436,641	)

Funded status at the end of the year	$	55,502		$	3,027

Amounts recognized in the consolidated balance sheet consisted of:
Noncurrent asset for pension benefits (other assets)	$	63,815		$	12,630
Current liabilities for pension benefits		(333	)		(321	)
Noncurrent liability for pension benefits		(7,980	)		(9,282	)

Net amount recognized at the end of the year	$	55,502		$	3,027

The following table provides the amounts recognized in accumulated other comprehensive income, net of taxes, at December 31:


Net Amounts Recognized:	2009			2008
	(In thousands)

Net actuarial loss	$	66,848		$	92,800
Prior service costs		286			604
Transition asset		(13	)		(44	)

Total recognized	$	67,121		$	93,360


Other changes in pension plan assets and benefit obligations
recognized in other comprehensive income, net of taxes:	2009
	(In thousands)

Net actuarial gain	$	(18,086	)
Amortization of net actuarial loss		(8,079	)
Amortization of prior service costs		(85	)
Amortization of transition asset		11

Total recognized	$	(26,239	)

The following table provides the components of net periodic pension benefit expense for the years ended December 31:


	2009			2008			2007
	(In thousands)

Defined benefit plans:
Service cost	$	4,517		$	5,827		$	6,927
Interest cost		28,239			28,549			27,750
Expected return on plan assets		(35,711	)		(41,578	)		(39,354	)
Amortization of:
Net actuarial loss (gain)		13,165			(74	)		650
Prior service costs		138			200			201
Transition asset		(18	)		(15	)		(15	)
Special termination benefits		—			35			—

Pension expense (income)		10,330			(7,056	)		(3,841	)
Pension curtailment charge		—			277			—

Total net periodic benefit expense (income)		10,330			(6,779	)		(3,841	)

Other plans:
Defined contribution plans		12,521			12,950			10,338
Foreign plans and other		3,977			4,406			4,752

Total other plans		16,498			17,356			15,090

Total net pension expense	$	26,828		$	10,577		$	11,249

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic pension benefit expense in 2010 for the net actuarial losses and prior service costs are expected to be $8.1 million.

The following weighted average assumptions were used to determine the above net periodic pension benefit expense for the years ended December 31:


	2009			2008			2007

U.S. Defined Benefit Pension Plans:

Discount rate		6.50	%		6.25	%		5.90	%
Expected return on plan assets		8.25	%		8.25	%		8.25	%
Rate of compensation increase (where applicable)		3.75	%		3.75	%		3.75	%

Foreign Defined Benefit Pension Plans:

Discount rate		6.09	%		5.89	%		5.00	%
Expected return on plan assets		6.97	%		7.00	%		7.00	%
Rate of compensation increase (where applicable)		2.98	%		3.86	%		3.61	%

Estimated Future Benefit Payments

The estimated future benefit payments for U.S. and foreign plans are as follows (in thousands): 2010 — $27,549; 2011 — $28,436; 2012 — $29,619; 2013 — $30,779; 2014 — $31,514; 2015 to 2019 — $170,804. Future benefit payments primarily represent amounts to be paid from pension trust assets. Amounts included that are to be paid from the Company’s assets are not significant in any individual year.

Postretirement Plans and Postemployment Benefits

The Company provides limited postretirement benefits other than pensions for certain retirees and a small number of former employees. Benefits under these arrangements are not funded and are not significant.

The Company also provides limited postemployment benefits for certain former or inactive employees after employment but before retirement. Those benefits are not significant in amount.

The Company has a deferred compensation plan, which allows employees whose compensation exceeds the statutory IRS limit for retirement benefits to defer a portion of earned bonus compensation. The plan permits deferred amounts to be deemed invested in either, or a combination of, (a) an interest-bearing account, benefits from which are payable out of the general assets of the Company, or (b) the equivalent of a fund which invests in shares of the Company’s common stock on behalf of the employee. The amount deferred under the plan, including income earned, was $16.1 million and $13.6 million at December 31, 2009 and 2008, respectively. Administrative expense for the plan is borne by the Company and is not significant.

Reportable Segments and Geographic Areas Information

12 Months Ended

Dec. 31, 2009

Reportable Segments and Geographic Areas Information [Abstract]

Reportable Segments and Geographic Areas Information


17.	Reportable Segments and Geographic Areas Information

Descriptive Information about Reportable Segments

The Company has two reportable segments, EIG and EMG. The Company manages, evaluates and aggregates its operating segments for segment reporting purposes primarily on the basis of product type, production processes, distribution methods and management organizations.

EIG produces instrumentation for various electronic applications used in transportation industries, including aircraft cockpit instruments and displays, airborne electronics systems that monitor and record flight and engine data, and pressure, temperature, flow and liquid-level sensors for commercial airlines and aircraft and jet engine manufacturers. EIG also produces analytical instrumentation for the laboratory and research markets, as well as instruments for food service equipment, measurement and monitoring instrumentation for various process industries and instruments and complete instrument panels for heavy trucks, heavy construction and agricultural vehicles. EIG also manufactures ultraprecise measurement instrumentation, as well as thermoplastic compounds for automotive, appliance and telecommunications applications.

EMG produces brushless air-moving motors for aerospace, mass transit, medical equipment, computer and business machine applications. EMG also produces high-purity metal powders and alloys in powder, strip and wire form for electronic components, aircraft and automotive products, as well as heat exchangers and thermal management subsystems. EMG also supplies hermetically sealed (moisture-proof) connectors, terminals and headers. These electromechanical devices are used in aerospace, defense and other industrial applications. Additionally, EMG produces air-moving electric motors and motor-blower systems for manufacturers of floor care appliances and outdoor power equipment. Sales of floor care and specialty motors represented 10.8% in 2009, 12.1% in 2008 and 13.7% in 2007 of the Company’s consolidated net sales.

Measurement of Segment Results

Segment operating income represents sales, less all direct costs and expenses (including certain administrative and other expenses) applicable to each segment, but does not include an allocation of interest expense. Net sales by segment are reported after elimination of intra- and inter-segment sales and profits, which are insignificant in amount. Such sales are generally based on prevailing market prices. Reported segment assets include allocations directly related to the segment’s operations. Corporate assets consist primarily of investments, prepaid pensions, insurance deposits and deferred taxes.

Reportable Segment Financial Information


	2009			2008			2007
	(In thousands)

Net sales(1):
Electronic Instruments	$	1,146,578		$	1,402,653		$	1,199,757
Electromechanical		951,777			1,128,482			937,093

Consolidated net sales	$	2,098,355		$	2,531,135		$	2,136,850

Operating income and income before income taxes:
Segment operating income(2):
Electronic Instruments	$	232,875		$	306,764		$	260,338
Electromechanical		166,582			175,181			167,166

Total segment operating income		399,457			481,945			427,504
Corporate administrative and other expenses		(33,407	)		(49,291	)		(40,930	)

Consolidated operating income		366,050			432,654			386,574
Interest and other expenses, net		(71,417	)		(66,438	)		(50,130	)

Consolidated income before income taxes	$	294,633		$	366,216		$	336,444

Assets:
Electronic Instruments	$	1,535,646		$	1,583,110
Electromechanical		1,357,219			1,291,602

Total segment assets		2,892,865			2,874,712
Corporate		353,167			180,830

Consolidated assets	$	3,246,032		$	3,055,542

Additions to property, plant and equipment(3):
Electronic Instruments	$	22,220		$	25,860		$	42,807
Electromechanical		16,668			52,231			29,485

Total segment additions to property, plant and equipment		38,888			78,091			72,292
Corporate		2,161			4,650			486

Consolidated additions to property, plant and equipment	$	41,049		$	82,741		$	72,778

Depreciation and amortization:
Electronic Instruments	$	32,635		$	30,569		$	23,603
Electromechanical		32,444			32,460			28,839

Total segment depreciation and amortization		65,079			63,029			52,442
Corporate		421			232			223

Consolidated depreciation and amortization	$	65,500		$	63,261		$	52,665


(1)		After elimination of intra- and intersegment sales, which are not significant in amount.

(2)		Segment operating income represents sales less all direct costs and expenses (including certain administrative and other expenses) applicable to each segment, but does not include interest expense.

(3)		Includes $8.0 million in 2009, $38.5 million in 2008 and $35.2 million in 2007 from acquired businesses.

Geographic Areas

Information about the Company’s operations in different geographic areas for the years ended December 31, 2009, 2008, and 2007 is shown below. Net sales were attributed to geographic areas based on the location of the customer. Accordingly, U.S. export sales are reported in international sales.


	2009		2008		2007
	(In thousands)

Net sales:
United States	$	1,066,644	$	1,305,594	$	1,083,118

International*:
United Kingdom		170,229		167,891		127,626
European Union countries		339,328		394,937		334,554
Asia		308,805		373,477		323,992
Other foreign countries		213,349		289,236		267,560

Total international		1,031,711		1,225,541		1,053,732

Total consolidated	$	2,098,355	$	2,531,135	$	2,136,850

Long-lived assets from continuing operations (excluding intangible assets):
United States	$	190,737	$	185,505

International**:
United Kingdom		38,375		36,212
European Union countries		60,973		64,831
Asia		8,905		10,451
Other foreign countries		11,063		11,530

Total international		119,316		123,024

Total consolidated	$	310,053	$	308,529


*		Includes U.S. export sales of $414.1 million in 2009, $478.5 million in 2008 and $394.4 million in 2007.

**		Represents long-lived assets of foreign-based operations only.

Contingencies

12 Months Ended

Dec. 31, 2009

Contingencies [Abstract]

Contingencies


19.	Contingencies

Asbestos Litigation

The Company (including its subsidiaries) has been named as a defendant, along with many other companies, in a number of asbestos-related lawsuits. Many of these lawsuits either relate to businesses which were acquired by the Company and do not involve products which were manufactured or sold by the Company or relate to previously owned businesses of the Company which are under new ownership. In connection with many of these lawsuits, the sellers or new owners of such businesses, as the case may be, have agreed to indemnify the Company against these claims (the “Indemnified Claims”). The Indemnified Claims have been tendered to, and are being defended by, such sellers and new owners. These sellers and new owners have met their obligations, in all respects, and the Company does not have any reason to believe such parties would fail to fulfill their obligations in the future; however, one of these companies filed for bankruptcy liquidation in 2007. To date, no judgments have been rendered against the Company as a result of any asbestos-related lawsuit. The Company believes it has strong defenses to the claims being asserted and intends to continue to vigorously defend itself in these matters.

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. While these waste products were handled in compliance with regulations existing at that time, at December 31, 2009, the Company is named a Potentially Responsible Party (“PRP”) at 16 non-AMETEK-owned former waste disposal or treatment sites (the “non-owned” sites). The Company is identified as a “de minimis” party in 14 of these sites based on the low volume of waste attributed to the Company relative to the amounts attributed to other named PRPs. In ten 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. In the two remaining sites 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 sufficient to satisfy the Company’s expected obligation. 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 low end of the range. 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 December 31, 2009 and 2008 were $27.0 million and $28.4 million, respectively, for non-owned and owned sites. In 2009, the Company received $1.3 million of additional reserves from a third party for existing sites. Additionally, the Company spent $2.7 million on environmental matters in 2009. The Company’s reserves for environmental liabilities at December 31, 2009 and 2008 include reserves of $19.2 million and $17.9 million, respectively, for an owned site acquired in connection with the fiscal 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 large 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. At December 31, 2009, the Company had $13.9 million in receivables related to HCC for probable recoveries from third-party escrow funds and other committed third-party funds to support the required remediation. Also, the Company is indemnified by HCC’s former owners for approximately $19.0 million of additional costs.

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; however, one of these companies filed for bankruptcy liquidation in 2007, as discussed further in the following paragraph.

In August 2009, the Company agreed to a Stipulation and Settlement Agreement with the San Diego Regional Water Quality Control Board regarding the 2008 Notice of Administrative Civil Liability related to a former subsidiary which became a separate company in 1988 and filed for bankruptcy liquidation in 2007, whereby the Company paid and deferred minor penalties, which were covered by previously established reserves.

The Company believes it has established reserves 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 upon presently available information and past 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.

Consolidated Balance Sheet (Parenthetical) - USD ($)	Dec. 31, 2009	Dec. 31, 2008
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	111,000,578	110,188,937
Treasury stock, shares	3,116,579	3,461,541

Consolidated Statement of Stockholders Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Foreign currency translation
Foreign currency translation:
Tax (expense) benefit from investment hedges	$ (2,290)	$ 6,058	$ (1,298)
Defined benefit pension plans
Defined benefit pension plans:
Tax (expense) benefit from change in pension plans	(15,830)	56,344	(14,141)
Unrealized holding gain (loss) on available-for-sale securities
Unrealized holding gain (loss) on available-for-sale securities:
Tax benefit (expense) from (Decrease) increase on available-for-sale securities	$ 343	$ (958)	$ 151

Fair Value Measurement	12 Months Ended
Fair Value Measurement	Dec. 31, 2009
Fair Value Measurement [Abstract]
Fair Value Measurement	3. Fair Value Measurement 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 adopted ASC 820 as of January 1, 2008, with the exception of the application of the statement to nonfinancial assets and nonfinancial liabilities that are measured or disclosed at fair value on a non-recurring basis, which was delayed by ASC 820-10-65-1, Transition Related to FASB Staff Position FAS 157-2, Effective Date of FASB Statement No. 157, to fiscal years beginning after November 15, 2008, which the Company adopted January 1, 2009. 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. At December 31, 2009, $0.3 million of the Company’s cash and cash equivalents as well as $5.0 million of marketable securities are valued as level 1 investments. In addition, the Company held $8.9 million of investments in fixed-income securities valued as level 2 investments in the investments and other assets line of the consolidated balance sheet. For the year ended December 31, 2009, gains and losses on the investments noted above were not significant.