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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 10-Q
_________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                     
Commission File Number 1-12981
_________________________
AMETEK, Inc.
(Exact name of registrant as specified in its charter)
_________________________
Delaware
(State or other jurisdiction of
incorporation or organization)

1100 Cassatt Road
Berwyn, Pennsylvania
(Address of principal executive offices)
14-1682544
(I.R.S. Employer
Identification No.)

19312-1177
(Zip Code)
Registrant’s telephone number, including area code: (610647-2121
_________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes     No  
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
(Do not check if a smaller reporting company)
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
_________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common StockAMENew York Stock Exchange
The number of shares of the registrant’s common stock outstanding as of the latest practicable date was: Common Stock, $0.01 Par Value, outstanding at October 28, 2022 was 229,654,397 shares.



AMETEK, Inc.
Form 10-Q
Table of Contents
Page
2

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Net sales$1,551,786 $1,440,681 $4,524,863 $4,042,769 
Cost of sales1,004,596 949,402 2,941,604 2,651,506 
Selling, general and administrative162,670 153,716 480,657 443,744 
Total operating expenses1,167,266 1,103,118 3,422,261 3,095,250 
Operating income384,520 337,563 1,102,602 947,519 
Interest expense(20,245)(20,476)(60,165)(59,865)
Other income (expense), net3,227 2,581 7,752 (3,775)
Income before income taxes367,502 319,668 1,050,189 883,879 
Provision for income taxes69,861 62,208 197,728 175,507 
Net income$297,641 $257,460 $852,461 $708,372 
Basic earnings per share$1.30 $1.11 $3.70 $3.07 
Diluted earnings per share$1.29 $1.10 $3.68 $3.04 
Weighted average common shares outstanding:
Basic shares229,500 231,171 230,360 230,811 
Diluted shares230,714 233,000 231,675 232,712 
Dividends declared and paid per share$0.22 $0.20 $0.66 $0.60 
See accompanying notes.
3

AMETEK, Inc.
Condensed Consolidated Statement of Comprehensive Income
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Total comprehensive income$215,568 $240,076 $694,902 $688,575 
See accompanying notes.
4

AMETEK, Inc.
Consolidated Balance Sheet
(In thousands)
September 30,
2022
December 31,
2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$309,944 $346,772 
Receivables, net876,460 829,213 
Inventories, net1,025,130 769,175 
Other current assets221,034 183,605 
Total current assets2,432,568 2,128,765 
Property, plant and equipment, net594,926 617,138 
Right of use assets, net161,217 169,924 
Goodwill5,190,196 5,238,726 
Other intangibles, net3,254,243 3,368,629 
Investments and other assets405,782 375,005 
Total assets$12,038,932 $11,898,187 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt, net$272,027 $315,093 
Accounts payable524,255 470,252 
Customer advanced payments332,244 298,728 
Income taxes payable49,056 35,904 
Accrued liabilities and other413,801 443,337 
Total current liabilities1,591,383 1,563,314 
Long-term debt, net2,085,364 2,229,148 
Deferred income taxes696,091 719,675 
Other long-term liabilities533,422 514,166 
Total liabilities4,906,260 5,026,303 
Stockholders’ equity:
Common stock2,695 2,689 
Capital in excess of par value1,059,079 1,012,526 
Retained earnings8,600,938 7,900,113 
Accumulated other comprehensive loss(628,003)(470,444)
Treasury stock(1,902,037)(1,573,000)
Total stockholders’ equity7,132,672 6,871,884 
Total liabilities and stockholders’ equity$12,038,932 $11,898,187 
See accompanying notes.
5

AMETEK, Inc.
Consolidated Statement of Stockholders’ Equity
(In thousands)
(Unaudited)
Three months ended September 30,Nine months ended September 30,
2022202120222021
Capital stock
Common stock, $0.01 par value
Balance at the beginning of the period$2,695 $2,684 $2,689 $2,676 
Shares issued 2 6 10 
Balance at the end of the period2,695 2,686 2,695 2,686 
Capital in excess of par value
Balance at the beginning of the period1,040,951 964,791 1,012,526 921,752 
Issuance of common stock under employee stock plans6,068 10,098 11,966 29,544 
Share-based compensation expense12,060 11,428 34,587 35,021 
Balance at the end of the period1,059,079 986,317 1,059,079 986,317 
Retained earnings
Balance at the beginning of the period8,353,735 7,453,401 7,900,113 7,094,656 
Net income297,641 257,460 852,461 708,372 
Cash dividends paid(50,438)(46,178)(151,635)(138,345)
Other (1)(1)(1)
Balance at the end of the period8,600,938 7,664,682 8,600,938 7,664,682 
Accumulated other comprehensive (loss) income
Foreign currency translation:
Balance at the beginning of the period(352,851)(256,421)(275,365)(250,748)
Translation adjustments(110,524)(31,207)(225,100)(45,160)
Change in long-term intercompany notes(17,393)(5,475)(40,512)(11,041)
Net investment hedge instruments gain (loss), net of tax of $(14,604) and $(5,715) for the quarter ended September 30, 2022 and 2021, and $(34,212) and $(10,194) for the nine months ended September 30, 2022 and 2021, respectively
44,844 17,668 105,053 31,514 
Balance at the end of the period(435,924)(275,435)(435,924)(275,435)
Defined benefit pension plans:
Balance at the beginning of the period(193,079)(250,460)(195,079)(253,720)
Amortization of net actuarial loss and other, net of tax of $(326) and $(527) for the quarter ended September 30, 2022 and 2021, and $(977) and $(1,581) for the nine months ended September 30, 2022 and 2021, respectively
1,000 1,630 3,000 4,890 
Balance at the end of the period(192,079)(248,830)(192,079)(248,830)
Accumulated other comprehensive loss at the end of the period(628,003)(524,265)(628,003)(524,265)
Treasury stock
Balance at the beginning of the period(1,901,360)(1,570,696)(1,573,000)(1,565,270)
Issuance of common stock under employee stock plans(632)(143)2,387 7,309 
Purchase of treasury stock(45)(185)(331,424)(13,063)
Balance at the end of the period(1,902,037)(1,571,024)(1,902,037)(1,571,024)
Total stockholders’ equity$7,132,672 $6,558,396 $7,132,672 $6,558,396 
See accompanying notes.
6

AMETEK, Inc.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Nine months ended September 30,
20222021
Cash provided by (used for):
Operating activities:
Net income$852,461 $708,372 
Adjustments to reconcile net income to total operating activities:
Depreciation and amortization230,968 214,494 
Deferred income taxes(32,889)(7,209)
Share-based compensation expense34,587 35,021 
Gain on sale of business/investment(3,584)(6,349)
Gain on sale of facilities(7,054) 
Net change in assets and liabilities, net of acquisitions(299,311)(60,947)
Pension contributions(5,244)(6,414)
Other, net(5,576)1,592 
Total operating activities764,358 878,560 
Investing activities:
Additions to property, plant and equipment(80,829)(67,229)
Purchases of businesses, net of cash acquired(190,321)(1,839,664)
Proceeds from sale of business/investment3,734 12,000 
Proceeds from sale of facilities11,754  
Other, net124 (291)
Total investing activities(255,538)(1,895,184)
Financing activities:
Net change in short-term borrowings(26,315)286,126 
Repurchases of common stock(331,424)(13,063)
Cash dividends paid(151,635)(138,345)
Proceeds from stock option exercises23,241 42,301 
Other, net(15,056)(5,818)
Total financing activities(501,189)171,201 
Effect of exchange rate changes on cash and cash equivalents(44,459)(8,723)
Decrease in cash and cash equivalents(36,828)(854,146)
Cash and cash equivalents:
Beginning of period346,772 1,212,822 
End of period$309,944 $358,676 
See accompanying notes.
7

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)

1.    Basis of Presentation
The accompanying consolidated financial statements are unaudited. AMETEK, Inc. (the “Company”) believes that all adjustments (which primarily consist of normal recurring accruals) necessary for a fair presentation of the consolidated financial position of the Company at September 30, 2022, the consolidated results of its operations for the three and nine months ended September 30, 2022 and 2021 and its cash flows for the nine months ended September 30, 2022 and 2021 have been included. Quarterly results of operations are not necessarily indicative of results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the U.S. Securities and Exchange Commission.
2.    Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncement
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which provides a single comprehensive accounting model for the acquisition of contract balances under ASC 805. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company early adopted the ASU on January 1, 2022, and the amendments in this ASU were applied on a prospective basis to all periods presented. The adoption of ASU 2021-08 did not impact the Company's consolidated results of operations, financial position, cash flows, or financial statement disclosures.
3.    Revenues
The outstanding contract asset and liability accounts were as follows:
20222021
(In thousands)
Contract assets—January 1$95,274 $68,971 
Contract assets – September 30111,687 82,986 
Change in contract assets – increase (decrease)16,413 14,015 
Contract liabilities – January 1328,816 215,093 
Contract liabilities – September 30371,411 311,674 
Change in contract liabilities – (increase) decrease(42,595)(96,581)
Net change$(26,182)$(82,566)
The net change for the nine months ended September 30, 2022 was primarily driven by contract liabilities, specifically growth in advance payments from customers. For the nine months ended September 30, 2022 and 2021, the Company recognized revenue of $252.4 million and $179.1 million, respectively, that was previously included in the beginning balance of contract liabilities.
Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At September 30, 2022 and December 31, 2021, $39.2 million and $30.1 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.
The remaining performance obligations not expected to be completed within one year as of September 30, 2022 and December 31, 2021 were $520.6 million and $342.5 million, respectively. Remaining performance obligations represent the transaction price of firm, non-cancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within two to three years.


8

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
Geographic Areas
Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the three and nine months ended September 30:
Three months ended September 30, 2022Nine months ended September 30, 2022
EIG
EMG
Total
EIGEMGTotal
(In thousands)
United States$554,048 $265,549 $819,597 $1,589,641 $737,362 $2,327,003 
International(1):
United Kingdom18,409 28,694 47,103 65,414 88,945 154,359 
European Union countries113,935 100,427 214,362 344,074 322,620 666,694 
Asia264,432 70,375 334,807 776,084 203,439 979,523 
Other foreign countries103,300 32,617 135,917 294,918 102,366 397,284 
Total international500,076 232,113 732,189 1,480,490 717,370 2,197,860 
Consolidated net sales$1,054,124 $497,662 $1,551,786 $3,070,131 $1,454,732 $4,524,863 
________________
(1)    Includes U.S. export sales of $415.4 million and $1,217.2 million for the three and nine months ended September 30, 2022.

Three months ended September 30, 2021Nine months ended September 30, 2021
EIGEMGTotalEIGEMGTotal
(In thousands)
United States$509,075 $230,524 $739,599 $1,393,015 $666,618 $2,059,633 
International(1):
United Kingdom25,358 32,846 58,204 67,954 91,465 159,419 
European Union countries117,035 102,069 219,104 338,556 300,970 639,526 
Asia242,063 65,624 307,687 657,478 192,267 849,745 
Other foreign countries88,284 27,803 116,087 249,670 84,776 334,446 
Total international472,740 228,342 701,082 1,313,658 669,478 1,983,136 
Consolidated net sales$981,815 $458,866 $1,440,681 $2,706,673 $1,336,096 $4,042,769 
______________
(1)    Includes U.S. export sales of $391.0 million and $1,087.3 million for the three and nine months ended September 30, 2021.

9

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
Major Products and Services
The Company’s major products and services in the reportable segments were as follows:
Three months ended September 30, 2022Nine months ended September 30, 2022
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$758,868 $ $758,868 $2,219,821 $ $2,219,821 
Aerospace and power295,256 143,689 438,945 850,310 407,771 1,258,081 
Automation and engineered solutions 353,973 353,973  1,046,961 1,046,961 
Consolidated net sales$1,054,124 $497,662 $1,551,786 $3,070,131 $1,454,732 $4,524,863 

Three months ended September 30, 2021Nine months ended September 30, 2021
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$661,243 $ $661,243 $1,881,923 $ $1,881,923 
Aerospace and power320,572 130,671 451,243 824,750 379,310 1,204,060 
Automation and engineered solutions 328,195 328,195  956,786 956,786 
Consolidated net sales$981,815 $458,866 $1,440,681 $2,706,673 $1,336,096 $4,042,769 
Timing of Revenue Recognition
Three months ended September 30, 2022Nine months ended September 30, 2022
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$869,455 $436,222 $1,305,677 $2,522,351 $1,272,382 $3,794,733 
Products and services transferred over time184,669 61,440 246,109 547,780 182,350 730,130 
Consolidated net sales$1,054,124 $497,662 $1,551,786 $3,070,131 $1,454,732 $4,524,863 

Three months ended September 30, 2021Nine months ended September 30, 2021
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$791,486 $413,062 $1,204,548 $2,206,252 $1,204,662 $3,410,914 
Products and services transferred over time190,329 45,804 236,133 500,421 131,434 631,855 
Consolidated net sales$981,815 $458,866 $1,440,681 $2,706,673 $1,336,096 $4,042,769 

10

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
Product Warranties
The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities and other in the consolidated balance sheet.
Changes in the accrued product warranty obligation were as follows:
Nine Months Ended September 30,
20222021
(In thousands)
Balance at the beginning of the period$27,478 $27,839 
Accruals for warranties issued during the period8,530 8,379 
Settlements made during the period(8,769)(9,112)
Warranty accruals related to acquired businesses and other during the period(1,080)2,227 
Balance at the end of the period$26,159 $29,333 
Accounts Receivable
The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.
At September 30, 2022, the Company had $876.5 million of accounts receivable, net of allowances of $12.0 million. Changes in the allowance were not material for the three and nine months ended September 30, 2022.
4.    Earnings Per Share
The calculation of basic earnings per share is based on the weighted average number of common shares considered outstanding during the periods. The calculation of diluted earnings per share reflects the effect of all potentially dilutive securities (principally outstanding stock options and restricted stock grants). Securities that are anti-dilutive have been excluded and are not significant. The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In thousands)
Weighted average shares:
Basic shares229,500 231,171 230,360 230,811 
Equity-based compensation plans1,214 1,829 1,315 1,901 
Diluted shares230,714 233,000 231,675 232,712 
5.    Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
The Company utilizes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active
11

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
The following table provides the Company’s assets that are measured at fair value on a recurring basis, consistent with the fair value hierarchy, at September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
Fair Value
Fair Value
(In thousands)
Mutual fund investments$8,866 $10,703 
The fair value of mutual fund investments, which are valued as level 1 investments, was based on quoted market prices. The mutual fund investments are shown as a component of investments and other assets on the consolidated balance sheet.
For the nine months ended September 30, 2022 and 2021, gains and losses on the investments noted above were not significant. No transfers between level 1 and level 2 investments occurred during the nine months ended September 30, 2022 and 2021.
Financial Instruments
Cash, cash equivalents and mutual fund investments are recorded at fair value at September 30, 2022 and December 31, 2021 in the accompanying consolidated balance sheet.
The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
Recorded
Amount
Fair Value
Recorded
Amount
Fair Value
(In thousands)
Long-term debt (including current portion)$(2,088,231)$(1,910,792)$(2,233,705)$(2,378,930)
The fair value of net short-term borrowings approximates the carrying value. Net short-term borrowings are valued as level 2 liabilities as they are corroborated by observable market data. The Company’s net long-term debt is all privately held with no public market for this debt, therefore, the fair value of net long-term debt was computed based on comparable current market data for similar debt instruments and is considered a level 3 liability.
Foreign Currency
At September 30, 2022, the Company had a Euro forward contract for a total notional value of 40.0 million Euros and a Canadian dollar forward contract for a notional value of 22.0 million Canadian dollars. For the nine months ended September 30, 2022, realized and unrealized gains and losses on the foreign currency forward contracts were not significant.
6.    Hedging Activities
The Company has designated certain foreign-currency-denominated long-term borrowings as hedges of the net investment in certain foreign operations. As of September 30, 2022, these net investment hedges included British-pound-and Euro-denominated long-term debt. These borrowings were designed to create net investment hedges in certain designated foreign subsidiaries. The Company designated the British-pound- and Euro-denominated loans referred to above as hedging instruments to offset translation gains or losses on the net investment due to changes in the British pound and Euro exchange rates. These net investment hedges are evidenced by management’s contemporaneous documentation supporting the
12

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
hedge designation. Any gain or loss on the hedging instruments (the debt) following hedge designation is reported in accumulated other comprehensive income in the same manner as the translation adjustment on the hedged investment based on changes in the spot rate, which is used to measure hedge effectiveness.
At September 30, 2022, the Company had $250.4 million of British-pound-denominated loans, which were designated as a hedge against the net investment in British pound functional currency foreign subsidiaries. At September 30, 2022, the Company had $523.7 million in Euro-denominated loans, which were designated as a hedge against the net investment in Euro functional currency foreign subsidiaries. As a result of the British-pound- and Euro-denominated loans designated and 100% effective as net investment hedges, $139.3 million of pre-tax currency remeasurement gains have been included in the foreign currency translation component of other comprehensive income for the nine months ended September 30, 2022.
7.    Inventories, net
September 30,
2022
December 31,
2021
(In thousands)
Finished goods and parts$128,409 $89,985 
Work in process151,456 122,356 
Raw materials and purchased parts745,265 556,834 
Total inventories, net$1,025,130 $769,175 
8.    Leases
The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the nine months ended September 30, 2022 and 2021. The Company's leases have a weighted average remaining lease term of approximately five years. Certain lease agreements contain provisions for future rent increases.
The components of lease expense were as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
(In thousands)
Operating lease cost$16,407 $13,560 $47,131 $37,083 
Variable lease cost2,479 1,737 7,131 4,609 
Total lease cost$18,886 $15,297 $54,262 $41,692 
Supplemental balance sheet information related to leases was as follows:
September 30,
2022
December 31,
2021
(In thousands)
Right of use assets, net$161,217 $169,924 
Lease liabilities included in Accrued Liabilities and other45,434 47,353 
Lease liabilities included in Other long-term liabilities121,382 129,101 
Total lease liabilities$166,816 $176,454 

13

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
Maturities of lease liabilities as of September 30, 2022 were as follows:
Lease Liability Maturity Analysis
Operating Leases
(In thousands)
Remaining 2022$13,154 
202346,850 
202435,684 
202526,797 
202620,476 
Thereafter36,390 
Total lease payments179,351 
Less: imputed interest12,535 
$166,816 
The Company does not have any significant leases that have not yet commenced.
9.    Acquisitions
Acquisitions
The Company spent $190.3 million in cash, net of cash acquired, to acquire Navitar, Inc. in September 2022. Navitar is a market leader in the design, development and manufacturing of customized, fully integrated optical imaging systems, cameras, components and software. Navitar is part of EIG.

The following table represents the allocation of the purchase price for the net assets of the Navitar acquisition based on the estimated fair values at acquisition (in millions):
Property, plant and equipment$8.9 
Goodwill71.1 
Other intangible assets95.0 
Net working capital and other(1)
15.3 
Total cash paid$190.3 
________________
(1)Includes $5.5 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.
The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the Navitar acquisition. Navitar's market leading optical components and solutions complement the Company's existing optics portfolio. The Company expects approximately $52 million of the goodwill relating to the Navitar acquisition will be tax deductible in future years.
At September 30, 2022, the purchase price allocated to other intangible assets of $95.0 million consists of $15.2 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $79.8 million of other intangible assets consists of $64.6 million of customer relationships, which are being amortized over a period of 17 years, and $15.2 million of purchased technology, which is being amortized over a period of 17 years. Amortization expense for each of the next five years for the 2022 acquisitions is expected to approximate $5 million per year.
The Company finalized its measurements of certain tangible and intangible assets and liabilities for its November 2021 acquisition of Alphasense, which had no material impact to the consolidated statement of income and balance sheet. The Company is in the process of finalizing the measurement of the intangible assets and tangible assets and liabilities, as well as accounting for income taxes, for Navitar.
14

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
The acquisition had an immaterial impact on reported net sales, net income, and diluted earnings per share for the three and nine months ended September 30, 2022. Had the acquisition been made at the beginning of 2022 or 2021, pro forma net sales, net income, and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021, would not have been materially different than the amounts reported.
Acquisition subsequent to September 30, 2022
In October 2022, the Company acquired RTDS Technologies for 325.0 million Canadian dollars (approximately $240.0 million) in cash. RTDS is a leading provider of real-time power simulation systems used by utilities, and research and education institutions in the development and testing of the electric power grid and renewable energy applications. RTDS will join EIG.
10.    Goodwill
The changes in the carrying amounts of goodwill by segment were as follows:
EIGEMGTotal
(In millions)
Balance at December 31, 2021$4,073.8 $1,164.9 $5,238.7 
Goodwill acquired from 2022 acquisitions71.1  71.1 
Purchase price allocation adjustments and other4.2  4.2 
Foreign currency translation adjustments(70.1)(53.7)(123.8)
Balance at September 30, 2022$4,079.0 $1,111.2 $5,190.2 

11.    Income Taxes
At September 30, 2022, the Company had gross uncertain tax benefits of $170.0 million, of which $125.3 million, if recognized, would impact the effective tax rate.
The following is a reconciliation of the liability for uncertain tax positions (in millions):
Balance at December 31, 2021$147.0 
Additions for tax positions23.5 
Reductions for tax positions(0.5)
Balance at September 30, 2022$170.0 
The additions above primarily reflect the tax positions for foreign tax planning initiatives. The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense. The amounts recognized in income tax expense for interest and penalties during the three and nine months ended September 30, 2022 and 2021 were not significant.
The effective tax rate for the three months ended September 30, 2022 was 19.0%, compared with 19.5% for the three months ended September 30, 2021. The lower effective tax rate in the third quarter of 2022 is primarily due to a favorable foreign rate differential and favorable foreign deferred taxes.


15

AMETEK, Inc.
Notes to Consolidated Financial Statements
September 30, 2022
(Unaudited)
12.    Debt
On May 12, 2022, the Company along with certain of its foreign subsidiaries amended and restated its credit agreement dated as of September 22, 2011, as amended and restated as of March 10, 2016 and as further amended and restated as of October 30, 2018, with the lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., PNC Bank, National Association, Trust Bank and Wells Fargo Bank, National Association, as Co-Syndication Agents. The credit agreement amends and restates the Company’s existing revolving credit facility to increase the size from $1.5 billion to $2.3 billion and terminates the $800 million term loan. The credit agreement places certain restrictions on allowable additional indebtedness. At September 30, 2022, the Company had $274.0 million outstanding on the revolver with a maturity date of May 2027.