Atrion (ATRI) 10-K1 Mar 212020 FY Annual reportFinancial data

Company Profile

Cover

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Feb. 14, 2021	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	Atrion Corporation
Entity Central Index Key	0000701288
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2020
Entity Filer Category	Large Accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Entity Common Stock Shares Outstanding		1,825,472
Entity Public Float			$ 904,980,997
Document Annual Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	001-32982
Entity Incorporation State Country Code	DE
Entity Address Address Line 1	One Allentown Parkway
Entity Address City Or Town	Allen
Entity Address State Or Province	TX
Entity Tax Identification Number	63-0821819
City Area Code	972
Local Phone Number	390-9800
Entity Address Postal Zip Code	75002

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF INCOME
Revenues	$ 147,591,000	$ 155,066,000	$ 152,448,000
Cost of Goods Sold	81,428,000	84,378,000	80,670,000
Gross Profit	66,163,000	70,688,000	71,778,000
Operating Expenses:
Selling	7,520,000	8,813,000	8,341,000
General and administrative	17,330,000	16,308,000	16,217,000
Research and development	5,645,000	5,038,000	5,513,000
Total operating expense	30,495,000	30,159,000	30,071,000
Operating Income	35,668,000	40,529,000	41,707,000
Interest and Dividend Income	1,444,000	2,487,000	1,667,000
Other Investment Income (Loss)	1,355,000	152,000	(1,380,000)
Other Income	0	0	42,000
Income before Provision for Income Taxes	38,467,000	43,168,000	42,036,000
Provision for Income Taxes	(6,352,000)	(6,407,000)	(7,781,000)
Net Income	$ 32,115,000	$ 36,761,000	$ 34,255,000
Net Income Per Basic Share	$ 17.49	$ 19.82	$ 18.49
Weighted Average Basic Shares Outstanding	1,836	1,855	1,853
Net Income Per Diluted Share	$ 17.44	$ 19.73	$ 18.44
Weighted Average Diluted Shares Outstanding	1,841	1,863	1,858
Dividends Per Common Share	$ 6.60	$ 5.80	$ 5.10

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 22,450,000	$ 45,048,000
Short-term investments	19,258,000	23,766,000
Accounts receivable, net of allowance for doubtful accounts of $41 and $36 in 2020 and 2019, respectively	16,445,000	18,886,000
Inventories	50,298,000	42,093,000
Prepaid expenses and other current assets	3,868,000	2,545,000
Total Current Assets	112,319,000	132,338,000
Long-term investments	46,207,000	31,772,000
Property, Plant and Equipment	218,912,000	200,990,000
Less: accumulated depreciation	123,977,000	116,384,000
Total Eqiupment	94,935,000	84,606,000
Other Assets and Deferred Charges:
Patents and licenses, net of accumulated amortization of $12,419 and $12,301 in 2020 and 2019, respectively	1,421,000	1,539,000
Goodwill	9,730,000	9,730,000
Other	2,278,000	2,046,000
Total Non- Current Assets	13,429,000	13,315,000
Total Assets	266,890,000	262,031,000
Current Liabilities:
Accounts payable	6,635,000	5,707,000
Accrued liabilities	6,565,000	5,148,000
Accrued income and other taxes	436,000	419,000
Total Current Liabilities	13,636,000	11,274,000
Line of credit	0	0
Other Liabilities and Deferred Credits:
Deferred income taxes	10,768,000	8,496,000
Other	2,044,000	4,391,000
Other Liabilities	12,812,000	12,887,000
Total Liabilities	26,448,000	24,161,000
Commitments and Contingencies	0	0
Stockholders' Equity:
Common stock, par value $0.10 per share, authorized 10,000 shares, issued 3,420 shares	342,000	342,000
Additional paid-in capital	53,527,000	52,043,000
Retained earnings	337,700,000	317,745,000
Treasury shares, 1,594 shares in 2020 and 1,565 shares in 2019, at cost	(151,127,000)	(132,260,000)
Total Stockholders' Equity	240,442,000	237,870,000
Total Liabilities and Stockholders' Equity	$ 266,890,000	$ 262,031,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Accounts receivable, net of allowance for doubtful accounts	$ 41	$ 36
Patents and licenses, net of accumulated amortization	$ 12,419	$ 12,301
Stockholders' equity
Common stock, shares par value	$ 0.10	$ 0.1
Common stock, shares authorized	10,000	10,000
Common stock, shares issued	3,420	3,420
Treasury stock, shares	1,594	1,565

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash Flows From Operating Activities:
Net income	$ 32,115,000	$ 36,761,000	$ 34,255,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,652,000	10,853,000	9,123,000
Deferred income taxes	2,282,000	1,809,000	(625,000)
Stock-based compensation	1,731,000	1,682,000	1,659,000
Net change in unrealized gains and losses on investments	(1,093,000)	(135,000)	1,399,000
Net change in accrued interest, premiums, and discounts on investments	112,000	(281,000)	47,000
Other	21,000	(6,000)	(18,000)
Adjustments to reconcile net income to net cash provided by operating activities	46,820,000	50,683,000	45,840,000
Changes in operating assets and liabilities:
Accounts receivable	2,438,000	(1,872,000)	62,000
Inventories	(8,205,000)	(8,521,000)	(4,218,000)
Prepaid expenses and other current assets	(1,323,000)	697,000	(43,000)
Other non-current assets	(275,000)	(425,000)	(87,000)
Accounts payable and accrued liabilities	2,095,000	1,254,000	725,000
Accrued income and other taxes	17,000	(200,000)	(127,000)
Other non-current liabilities	(2,347,000)	849,000	1,084,000
Net cash provided by used in operating activities	38,970,000	42,465,000	43,236,000
Cash Flows From Investing Activities:
Property, plant and equipment additions	(21,886,000)	(20,446,000)	(17,507,000)
Purchase of investments	(45,768,000)	(83,721,000)	(28,472,000)
Proceeds from sale of investments	899,000	0	0
Proceeds from maturities of investments	35,923,000	59,331,000	40,898,000
Net cash provided by used in investing activities	(30,832,000)	(44,836,000)	(5,081,000)
Cash Flows From Financing Activities:
Shares tendered for employees' withholding taxes on stock-based compensation	(55,000)	(579,000)	(90,000)
Purchase of treasury stock	(18,831,000)	0	0
Dividends paid	(12,100,000)	(10,755,000)	(9,448,000)
Net cash provided by used in financing activities	(30,986,000)	(11,334,000)	(9,538,000)
Net change in cash and cash equivalents	(22,598,000)	(13,705,000)	28,617,000
Cash and cash equivalents, beginning of year	45,048,000	58,753,000	30,136,000
Cash and cash equivalents, end of year	22,450,000	45,048,000	58,753,000
Cash paid for:
Income taxes, net of refunds	$ 5,565,000	$ 4,178,000	$ 9,858,000

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) shares in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated other comprehensive Income (Loss)	Retained Earnings
Balance, shares at Dec. 31, 2017		1,852	1,568
Balance, amount at Dec. 31, 2017	$ 184,388,000	$ 342,000	$ (131,663,000)	$ 48,730,000	$ (1,215,000)	$ 268,194,000
Net income	34,255,000					34,255,000
Reclass from adopting ASU 2016-01	0				1,215,000	(1,215,000)
Stock-based compensation transactions, shares		1	(1)
Stock-based compensation transactions, amount	1,687,000		$ 26,000	1,661,000
Shares surrendered in stock transactions	(90,000)		$ (90,000)
Dividends	(9,473,000)					(9,473,000)
Balance, shares at Dec. 31, 2018		1,853	1,567
Balance, amount at Dec. 31, 2018	210,767,000	$ 342,000	$ (131,727,000)	50,391,000	0	291,761,000
Net income	36,761,000					36,761,000
Stock-based compensation transactions, shares		3	(3)
Stock-based compensation transactions, amount	1,698,000		$ 46,000	1,652,000
Shares surrendered in stock transactions	(579,000)		$ (579,000)
Dividends	(10,777,000)					(10,777,000)
Shares surrendered in stock transactions, shares		(1)	1
Balance, shares at Dec. 31, 2019		1,855	1,565
Balance, amount at Dec. 31, 2019	237,870,000	$ 342,000	$ (132,260,000)	52,043,000	0	317,745,000
Net income	32,115,000					32,115,000
Stock-based compensation transactions, amount	1,503,000		19,000	1,484,000
Shares surrendered in stock transactions	(55,000)		$ (55,000)
Dividends	(12,124,000)					(12,124,000)
Cumulative change in accounting principle	(36,000)					(36,000)
Adjusted Balance at January 1, 2020, shares		1,855	1,565
Adjusted Balance at January 1, 2020, amount	237,834,000	$ 342,000	$ (132,260,000)	52,043,000	0	317,709,000
Purchase of treasury stock, shares		(29)	29
Purchase of treasury stock, amount	(18,831,000)		$ (18,831,000)
Balance, shares at Dec. 31, 2020		1,826	1,594
Balance, amount at Dec. 31, 2020	$ 240,442,000	$ 342,000	$ (151,127,000)	$ 53,527,000	$ 0	$ 337,700,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2020
Summary of Significant Accounting Policies
1- Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies Atrion Corporation and its subsidiaries (“we,” “our,” “us,” “Atrion” or the “Company”) develop and manufacture products primarily for medical applications. We market our products throughout the United States and internationally. Our customers include physicians, hospitals, distributors and other manufacturers. Atrion Corporation’s principal subsidiaries through which these operations are conducted are Atrion Medical Products, Inc., Halkey-Roberts Corporation and Quest Medical, Inc. Principles of Consolidation The consolidated financial statements include the accounts of Atrion Corporation and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain prior-year balances have been reclassified in order to conform to the current year presentation. Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Cash and Cash Equivalents and Investments Cash and cash equivalents include cash on hand and cash deposits in the bank as well as money market funds and debt securities with maturities at the time of purchase of 90 days or less. Cash deposits in the bank include amounts in operating accounts, savings accounts and money market accounts. Our investments consist of corporate and government bonds, commercial paper, mutual funds and equity securities. We classify our investment securities in one of three categories: held-to-maturity, available-for-sale, or trading. Securities that we have the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity securities. We report our available-for-sale and trading securities at fair value with changes in fair value recognized in other investment income (loss) in the Consolidated Statement of Income. Prior to our adoption of ASU 2016-01, Financial Instruments-Overall, Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) We consider as current assets those investments which will mature in the next 12 months including interest receivable on long-term bonds. The remaining investments are considered non-current assets including our investment in equity securities which we intend to hold longer than 12 months. We periodically evaluate our investments for impairment. The components of the Company’s cash and cash equivalents and our short and long-term investments as of December 31, 2020 and 2019 are as follows (in thousands): December 31, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 16,628 $ 38,942 Money market funds 4,822 3,460 Commercial paper 1,000 2,646 Total cash and cash equivalents $ 22,450 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 5,178 $ 6,778 Bonds (held-to-maturity) 14,101 16,988 Allowance for credit losses (21 ) - Total short-term investments $ 19,258 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 563 $ 1,105 Bonds (held-to-maturity) 41,619 27,845 Allowance for credit losses (52 ) - Equity securities (available for sale) 4,077 2,822 Total long-term investments $ 46,207 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 87,915 $ 100,586 Accounts Payable We reflect disbursements as trade accounts payable until such time as payments are presented to our bank for payment. At December 31, 2020 and 2019, disbursements totaling approximately $1,434,000 and $1,236,000, respectively, had not been presented for payment to our bank. Income Taxes We account for income taxes utilizing Accounting Standards Codification (ASC 740), Income Taxes ASC 740 also requires the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attributes of income tax positions taken or expected to be taken on a tax return. Under ASC 740, the impact of an uncertain tax position taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more-likely-than-not of being sustained. Our uncertain tax positions are recorded within “Other non-current liabilities” in the accompanying consolidated balance sheets. We classify interest expense on underpayments of income taxes and accrued penalties related to unrecognized tax benefits in the income tax provision. We account for excess tax benefits (“windfalls”) and deficiencies (“shortfalls”) related to employee stock compensation as required by ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting During the years ended December 31, 2020 and 2019, we made quarterly payments in excess of federal and state income taxes due of approximately $1,525,000 and $4,000, respectively. These amounts were recorded in prepaid expenses and other current assets on our consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Additions and improvements are capitalized, including all material, labor and engineering costs to design, install or improve the asset. Expenditures for repairs and maintenance are charged to expense as incurred. The following table represents a summary of property, plant and equipment at original cost (in thousands): December 31, Useful 2020 2019 Lives Land $ 5,511 $ 5,511 — Buildings 35,114 34,582 30-40 yrs. Machinery and equipment 178,287 160,897 3-15 yrs. Total property, plant and equipment $ 218,912 $ 200,990 Depreciation expense of $11,533,000, $10,733,000 and $9,003,000 was recorded for the years ended December 31, 2020, 2019 and 2018, respectively. Depreciation expense is recorded in either cost of goods sold or operating expenses based on the associated assets’ usage. Patents and Licenses Costs for patents and licenses acquired are determined at acquisition date. Patents and licenses are amortized over the useful lives of the individual patents and licenses, which are from seven to 20 years. Patents and licenses are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Goodwill Goodwill represents the excess of cost over the fair value of tangible and identifiable intangible net assets acquired. Annual impairment testing for goodwill is performed in the fourth quarter of each year using a qualitative assessment on goodwill impairment to determine whether it is more likely than not that the carrying value of our reporting units exceeds their fair value. If necessary, a two-step goodwill impairment analysis is performed. Goodwill is also reviewed whenever events or changes in circumstances indicate a change in value may have occurred. We have identified three reporting units where goodwill was recorded for purposes of testing goodwill impairment annually: (1) Atrion Medical Products, Inc., (2) Halkey-Roberts Corporation and (3) Quest Medical, Inc. The total carrying amount of goodwill in each of the years ended December 31, 2020 and 2019 was $9,730,000. Our evaluation of goodwill during each year resulted in no impairment losses. Current Accrued Liabilities The items comprising current accrued liabilities are as follows (in thousands): December 31, 2020 2019 Accrued payroll and related expenses $ 5,656 $ 4,233 Accrued vacation 276 311 Other accrued liabilities 633 604 Total accrued liabilities $ 6,565 $ 5,148 A summary of revenues by geographic area, based on shipping destination, for 2020, 2019 and 2018 is as follows (in thousands): Year ended December 31, 2020 2019 2018 United States $ 85,682 $ 98,496 $ 95,757 Germany 9,712 7,996 8,898 Other countries less than 5% of revenues 52,197 48,574 47,793 Total $ 147,591 $ 155,066 $ 152,448 A summary of revenues by product line for 2020, 2019 and 2018 is as follows (in thousands): ` Year ended December 31, 2020 2019 2018 Fluid Delivery $ 75,228 $ 72,117 $ 70,606 Cardiovascular 48,524 54,799 50,904 Ophthalmology 4,700 7,124 10,473 Other 19,139 21,026 20,465 Total $ 147,591 $ 155,066 $ 152,448 We expense sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling expense. Atrion has contracts in place with customers for equipment leases, equipment financing, and equipment and other services. These contracts represent less than four percent of our total revenue in all periods presented herein. A portion of these contracts contain multiple performance obligations including embedded leases. For such arrangements, we historically allocated revenue to each performance obligation which is capable of being distinct and accounted for as a separate performance obligation based on relative standalone selling prices. We generally determine standalone selling prices based on observable inputs, primarily the prices charged to customers. Beginning July 1, 2018, for agreements with an embedded lease component, we adopted the practical expedient in ASU 2018-11 Leases: Targeted Improvements Our fixed monthly equipment rentals to customers are accounted for as operating leases under ASU 2016-02, Leases A limited number of our contracts have variable consideration including tiered pricing and rebates which we monitor closely for potential constraints on revenue. For these contracts we estimate our position quarterly using the most-likely-outcome method, including customer-provided forecasts and historical buying patterns, and we accrue for any asset or liability these arrangements may create. The effect of accruals for variable consideration on our consolidated financial statements is immaterial. We do not disclose the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount which we have the right to invoice. We believe that the complexity added to our disclosures by the inclusion of a large amount of insignificant detail in attempting to disclose information under ASC 606 about immaterial contracts would potentially obscure more useful and important information. Leases to Customers The lease assets from our sales type leases are recorded in our accounts receivable in the accompanying consolidated balance sheets, and as of December 31, 2020 and 2019 the balance totaled $315,000 and $398,000 respectively. Our equipment treated as leases to customers under ASC 842 is included in our Property, Plant and Equipment on our consolidated balance sheets. After our adoption of ASU 2018-11, the cost of the assets and associated depreciation that remain under lease agreements is immaterial. Due to the immaterial amount of revenue from our lessor activity, all other lessor disclosures under ASC 842 have been omitted. Leased Property and Equipment As a lessee, we have three leases in total for equipment and facilities used internally, which we account for as operating leases. At December 31, 2020, our right-of-use asset balance was $295,000 and our lease liability at December 31, 2020 for these leases was $272,000. The monthly expense of $27,000 for these operating leases, which are our only lessee arrangements, is immaterial and therefore all other lessee disclosures under ASC 842 have been omitted. Research and Development Costs Research and Development, or R&D, costs relating to the development of new products and improvements of existing products are expensed as incurred. Stock-Based Compensation We have a stock-based compensation plan covering certain of our officers, directors and key employees. As explained in detail in Note 8, we account for stock-based compensation utilizing the fair value recognition provisions of ASC 718, Compensation-Stock Compensation, Liability-classified awards The Company classifies certain awards that can or will be settled in cash as liability awards. The fair value of a liability-classified award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded to general and administrative expense over the vesting period of the award. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities and trade and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. On January 1, 2020, we adopted the guidance prospectively with a cumulative adjustment to retained earnings. Atrion has not restated comparative information for 2019 and, therefore, the comparative information for 2019 is reported under the old model and is not comparable to the information presented for 2020. At adoption, we recognized an incremental allowance for credit losses on our allowance for credit losses related to our held-to-maturity debt securities of approximately $42,000 and our trade accounts receivable of approximately $4,000. Additionally, we recorded an approximately $36,000 decrease in retained earnings associated with the increased estimated credit losses on our trade accounts receivable and investments. The impact on our operating results for 2020 from our adoption of this pronouncement was not material. From time to time new accounting pronouncements applicable to us are issued by the FASB, or other standards setting bodies, which we will adopt as of the specified effective date. Unless otherwise discussed, we believe the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. Fair Value Measurements Accounting standards use a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers are: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists therefore requiring an entity to develop its own assumptions. As of December 31, 2020 and 2019, we held investments in commercial paper, bonds, money market funds, mutual funds and equity securities that are required to be measured for disclosure purposes at fair value on a recurring basis. The fair values of these investments and their tier levels are shown in Note 2 below. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments and accounts receivable. We have investments in money market funds, bonds and commercial paper. As a result, we are exposed to potential loss from market risks that may occur as a result of changes in interest rates, changes in credit quality of the issuer and otherwise. These securities have a higher degree of, and a greater exposure to, credit or default risk and may be less liquid in times of economic weakness or market disruptions as compared with cash deposits. For accounts receivable, we perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral. We maintain reserves for possible credit losses. As of December 31, 2020 and 2019, we had allowances for doubtful accounts of approximately $41,000 and $36,000, respectively. The carrying amount of the receivables approximates their fair value. We had two customers which accounted for 12% each of our accounts receivable as of December 31, 2020 and one customer which accounted for 12% of our accounts receivable as of December 31, 2019.

Investments

Investments	12 Months Ended
Investments	Dec. 31, 2020
Investments
2- Investments	(2) Investments As of December 31, 2020 and 2019, we held investments in commercial paper, bonds, money market funds, mutual funds and equity securities that are required to be measured for disclosure purposes at fair value on a recurring basis. The commercial paper and bonds are considered held-to-maturity and are recorded at amortized cost in the accompanying consolidated balance sheets. The money market funds, equity securities and mutual funds are recorded at fair value in the accompanying consolidated balance sheets. These investments are considered Level 1 or Level 2 as detailed in the table below. We consider as current assets those investments which will mature in the next 12 months including interest receivable on the long-term bonds. The remaining investments are considered non-current assets including our investment in equity securities we intend to hold longer than 12 months. The fair values of these investments were estimated using recently executed transactions and market price quotations. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of the dates shown below (in thousands): Gross Unrealized Level Cost Gains Losses Fair Value As of December 31, 2020: Money market funds 1 4,822 $ — $ — $ 4,822 Commercial paper 2 6,178 $ — $ — $ 6,178 Bonds 2 55,720 $ 505 $ (44 ) $ 56,181 Mutual funds 1 599 $ — $ (36 ) $ 563 Equity investments 2 5,675 $ — $ (1,598 ) $ 4,077 As of December 31, 2019: Money market funds 1 3,460 $ — $ — $ 3,460 Commercial paper 2 9,424 $ 2 $ — $ 9,426 Bonds 2 44,833 $ 138 $ (19 ) $ 44,952 Mutual funds 1 1,052 $ 53 $ — $ 1,105 Equity investments 2 5,675 $ — $ (2,853 ) $ 2,822 The above equity investments represent an investment in one company at December 31, 2020 and is classified as available for sale. The carrying value of our investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest an investment may not be recoverable. As of December 31, 2020 we had no bond investments in a loss position for more than 12 months. At December 31, 2020, the length of time until maturity of the bonds we currently own ranged from one to 51 months and the length of time until maturity of the commercial paper ranged from one to nine months. Topic 326 utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. Our credit loss calculations for held-to-maturity securities are based upon historical default and recovery rates of bonds rated with the same rating as our portfolio. We also apply an adjustment factor to these credit loss calculations based upon our assessment of the expected impact from current economic conditions on our investments, including the impact of COVID-19. We monitor the credit quality of debt securities classified as held-to-maturity through the use of their respective credit ratings and update them on a quarterly basis with our latest assessment completed on December 31, 2020. During the year 2020, our allowance for credit losses related to short-term and long-term investments increased by $12,000 and $18,000, respectively. The following table summarizes the amortized cost of our held-to-maturity bonds at December 31, 2020, aggregated by credit quality indicator (in thousands): Held-to-Maturity Bonds Credit Quality Indicators Asset Backed Bonds Fed Govt. Bonds/Notes Municipal Bonds Corporate Bonds Totals AAA/AA/A $ 1,413 $ 3,222 $ 637 $ 32,126 $ 37,398 BBB/BB - - - 18,322 18,322 TOTAL $ 1,413 $ 3,222 $ 637 $ 50,448 $ 55,720

Patents and Licenses

Patents and Licenses	12 Months Ended
Patents and Licenses	Dec. 31, 2020
Patents and Licenses
3- Patents and Licenses	(3) Patents and Licenses Purchased patents and licenses paid for the use of other entities’ patents are amortized over the useful life of the patent or license. The following tables provide information regarding patents and licenses (dollars in thousands): December 31, 2020 December 31, 2019 Weighted Average Gross Accumulated Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,419 15.67 $ 13,840 $ 12,301 Aggregate amortization expense for patents and licenses was $119,000 for both 2020 and 2019. Estimated future amortization expense for each of the years set forth below ending December 31 is as follows (in thousands): 2021 $ 119 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112

Line of Credit

Line of Credit	12 Months Ended
Line of Credit	Dec. 31, 2020
Line of Credit
4- Line of Credit	(4) Line of Credit As of December 31, 2020 and 2019, we had a $75.0 million revolving credit facility with a money center bank pursuant to which the lender is obligated to make advances until February 28, 2022. On February 12, 2021 this credit facility was amended to, among other things, extend the date for advances to February 28, 2024. The credit facility is secured by substantially all our inventories, equipment and accounts receivable. Interest under the credit facility is assessed at 30-day, 60-day or 90-day LIBOR, as selected by us, plus 0.875 percent (1.035 percent at December 31, 2020) and is payable monthly. We had no outstanding borrowings under the credit facility at December 31, 2020 or December 31, 2019. Our ability to borrow funds under the credit facility from time to time is contingent on meeting certain covenants in the loan agreement, the most restrictive of which is the ratio of total debt to earnings before interest, income tax, depreciation and amortization. At December 31, 2020, we were in compliance with all of the covenants.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2020
Income Taxes
5- Income taxes	(5) Income Taxes The items comprising Provision for Income Taxes are as follows (in thousands): Year ended December 31, 2020 2019 2018 Current — Federal $ 3,166 $ 3,508 $ 6,405 — State 904 1,090 2,001 4,070 4,598 8,406 Deferred — Federal 2,111 1,660 (626 ) — State 171 149 1 2,282 1,809 (625 ) Provision for Income Taxes $ 6,352 $ 6,407 $ 7,781 Temporary differences and carryforwards which have given rise to deferred tax liabilities as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Deferred tax liabilities (assets): Property, plant and equipment $ 11,532 $ 9,697 Patents and goodwill 1,775 1,756 Benefit plans (1,976 ) (2,131 ) Inventories (420 ) (350 ) Capital loss carryover (544 ) (556 ) Other (179 ) (513 ) 10,188 7,903 Plus: Valuation allowance 580 593 Total deferred tax liabilities $ 10,768 $ 8,496 Total income tax expense differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below (in thousands): Year ended December 31, 2020 2019 2018 Income tax expense at the statutory federal income tax rate $ 8,078 $ 9,065 $ 8,828 Increase (decrease) resulting from: State income taxes 838 978 1,572 R&D tax credits (1,589 ) (1,470 ) (1,212 ) Foreign-derived intangible income deduction (1,051 ) (1,700 ) (1,000 ) Excess tax benefit from stock compensation (81 ) (412 ) (95 ) Change in valuation allowance (13 ) (16 ) - Uncertain tax positions (450 ) (42 ) (373 ) Other, net 619 4 61 Provision for Income Taxes $ 6,352 $ 6,407 $ 7,781 A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as required by ASC 740 is as follows (in thousands): Gross unrecognized tax benefits at January 1, 2018 $ 865 Increase in tax positions for prior years 25 Increase in tax positions for current years — Lapse in statutes of limitation (397 ) Gross unrecognized tax benefits at December 31, 2018 $ 493 Increase in tax positions for prior years 19 Increase in tax positions for current year — Lapse in statutes of limitation (62 ) Gross unrecognized tax benefits at December 31, 2019 $ 450 Increase in tax positions for prior years 8 Increase in tax positions for current year — Lapse in statutes of limitation (458 ) Gross unrecognized tax benefits at December 31, 2020 $ — We are subject to United States federal income tax as well as to income tax of multiple state jurisdictions. We have concluded all United States federal income tax matters, as well as all material state and local income tax matters, for years through 2016. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The liability for unrecognized tax benefits included accrued interest of $20,000 and $19,000 at December 31, 2019 and 2018, respectively. Tax expense for the years ended December 31, 2020, 2019 and 2018 included a net interest benefit of $35,000, $16,000 and $18,000, respectively.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2020
Stockholders' Equity:
6- Stockholders's Equity	(6) Stockholders’ Equity Our Board of Directors has at various times authorized repurchases of our stock in open-market or privately-negotiated transactions at such times and at such prices as management may from time to time determine. On May 21, 2015 our Board of Directors adopted a stock repurchase program authorizing the repurchase of up to 250,000 shares of our common stock in open-market or privately-negotiated transactions. This program has no expiration date but may be terminated by the Board of Directors at any time. As of December 31, 2020, there remained 202,018 for repurchasing under this program. As of December 31, 2019, there remained 231,765 shares available for repurchase under this program. During 2020 we repurchased a total of 29,747 shares of our common stock in the open-market. There were no stock repurchases during 2019 or 2018. We increased our quarterly cash dividend payments in September of each of the past three years. The quarterly dividend was increased to $1.35 per share in September 2018, to $1.55 per share in September 2019 and to $1.75 per share in September 2020. Holders of our stock units earned non-cash dividend equivalents of $24,000 in 2020, $22,000 in 2019 and $25,000 in 2018.

Income Per Share

Income Per Share	12 Months Ended
Income Per Share	Dec. 31, 2020
Income Per Share
7- Income Per Share	(7) Income Per Share The following is the computation of basic and diluted income per share: Year ended December 31, 2020 2019 2018 (In thousands, except per share amounts) Net Income $ 32,115 $ 36,761 $ 34,255 Weighted average basic shares outstanding 1,836 1,855 1,853 Add: Effect of dilutive securities 5 8 5 Weighted average diluted shares outstanding 1,841 1,863 1,858 Net Income per share Basic $ 17.49 $ 19.82 $ 18.49 Diluted $ 17.44 $ 19.73 $ 18.44 As required by ASC 260, Earnings per Share Incremental shares from stock options and restricted stock units were included in the calculation of weighted average diluted shares outstanding using the treasury stock method. Securities representing six, seven and 501 shares of common stock for the years ended December 31, 2020, 2019 and 2018, respectively, were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive.

Stock-based Compensation

Stock-based Compensation	12 Months Ended
Stock-based Compensation	Dec. 31, 2020
Stock-based Compensation
8- Stock-based Compensation	(8) Stock-based Compensation At December 31, 2020, we had one stock-based compensation plan that is described below. We account for our plan under ASC 718, and the disclosures that follow are based on applying ASC 718. Our Amended and Restated 2006 Equity Incentive Plan, or 2006 Plan, provides for awards to key employees, non-employee directors and consultants of incentive and nonqualified stock options, restricted stock, restricted stock units, deferred stock units, stock appreciation rights, performance shares and other stock-based awards. Under the 2006 Plan, 200,000 shares, in the aggregate, of common stock were reserved for awards. The purchase price of shares issued on the exercise of options were required to be at least equal to the fair market value of such shares on the date of grant. The options granted become exercisable and expire as determined by the Compensation Committee. As of December 31, 2020, no future stock-based awards were permitted under the 2006 Plan. A summary of stock option transactions for the year ended December 31, 2020, is presented below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2019 20,000 $ 501.03 2.3 years Granted — — Exercised — — Outstanding at December 31, 2020 20,000 $ 501.03 1.3 years Exercisable at December 31, 2020 12,000 $ 501.03 1.3 years All nonvested options outstanding at December 31, 2020 are expected to vest. None of our grants includes performance-based or market-based vesting conditions. We estimate the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. Our Black-Scholes valuation uses a volatility factor based on our historical stock trading history, a risk-free interest rate based on the implied yield currently available on U.S. Treasury securities with an equivalent term, and a dividend yield based on our dividend history. Our expected life assumption represents the period that our stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. There were no options granted in 2020 and 2019. The weighted average grant date fair value of the options granted in 2017 was $130.35. The total intrinsic value of options outstanding at December 31, 2020, was $2.8 million. The total intrinsic value of exercisable options at December 31, 2020, was $1.7 million. There were no restricted stock grants during 2020 and 2019. During 2017, we granted two awards of restricted stock under the 2006 Plan. Under the terms of our restricted stock awards, the restrictions usually lapse over a five-year period. Both awards include restrictions on transfer for a two-year period following vesting. During the vesting period, holders of restricted stock have voting rights and earn dividends, but the shares may not be sold, assigned, transferred, pledged or otherwise encumbered. Nonvested shares are generally forfeited on termination of employment unless otherwise provided in the participant’s employment agreement or the termination is in connection with a change in control. We calculated the weighted average fair value per share of the restricted stock awarded in 2017 using the market value of our common stock on the date of the grant with a discount for post-vesting restrictions of 11.2%. We estimated this discount using the Chaffe protective put method. A summary of changes in nonvested restricted stock for the year ended December 31, 2020, is presented below: Nonvested Shares Shares Weighted Average Award Date Fair Value Per Share Restricted stock at December 31, 2019 3,540 $ 445.47 Granted in 2020 — — Vested in 2020 (1,180 ) $ 445.47 Restricted stock at December 31, 2020 2,360 $ 445.47 During 2020, restricted stock units were added to certain employee accounts under the 2006 Plan as dividend equivalents. All of our restricted stock units granted under the 2006 Plan are convertible to shares of stock on a one-for-one basis when the restrictions lapse, which is generally after a five-year period. Nonvested restricted stock units are generally forfeited on termination of employment unless the termination is in connection with a change in control. During the vesting period, holders of restricted stock units earn dividends in the form of additional units. During 2020, one non-employee director elected to receive stock units in lieu of a portion of his cash fees for his services as a member of the Board of Directors. A summary of changes in stock units for the year ended December 31, 2020, is presented below: Nonvested Stock Units Restricted Stock Units Weighted Average Award Date Fair Value Per Unit Director’s Stock Units Weighted Average Award Date Fair Value Per Unit Nonvested at December 31, 2019 3,601 $ 623.19 — Added 33 $ 635.04 16 $ 711.75 Forfeited (40 ) $ 766.48 — Vested (479 ) $ 388.02 (16 ) $ 711.75 Nonvested at December 31, 2020 3,115 $ 657.70 — All nonvested restricted stock units set forth above at December 31, 2020 are expected to vest. The total intrinsic value of these outstanding stock units which were not convertible at December 31, 2020, including 503 stock units held for the accounts of non-employee directors, was $2,324,000. The total fair value of directors’ stock units that vested during 2020, 2019 and 2018 was $11,000, $7,000 and $6,000, respectively. In addition to the above, during 2020 we granted 3,865 restricted stock units to three employees outside of the 2006 Plan that will be settled in cash and are treated as liability-classified awards. The grant-date fair value per unit for these awards was $646.90. No grants of this type were made outside the 2006 Plan prior to 2020. These units will vest 20 percent each year over a five-year period beginning in 2021. Changes in the fair value of these awards are recorded to G&A expense over the vesting period of the award. The liability recorded for these units is adjusted to the current market value at the end of each reporting period. At December 31, 2020, none of these units had vested and our recorded liability for these units was $250,000. The intrinsic value of these units at December 31, 2020 was $2,496,000 including accrued amounts for dividend equivalents. There were no stock awards to nonemployee directors under the 2006 Plan in 2020. The total value of stock awards to nonemployee directors awarded under the 2006 Plan was $240,000 in each of 2019 and 2018. These awards vested immediately at the time of the grants. Compensation related to stock awards, restricted stock and stock units that are treated as equity-classified awards is based on the fair market value of the stock on the date of the award. These fair values are then amortized on a straight-line basis over the requisite service periods of the entire awards, which is generally the vesting period. Compensation related to stock options is based on the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. For the years ended December 31, 2020, 2019 and 2018, we recorded stock-based compensation expense as a G&A expense in the amount of $1,731,000, $1,682,000 and $1,659,000, respectively, for all of the above-mentioned stock-based compensation arrangements. The total tax benefit recognized in the income statement from stock-based compensation arrangements for the years ended December 31, 2020, 2019 and 2018 was $444,000, $765,000 and $441,000, respectively. These amounts include excess tax benefits in each year. Unrecognized compensation cost information for our various stock-based compensation awards is shown below as of December 31, 2020: Unrecognized Compensation Cost Weighted Average Remaining Years in Amortization Period Stock options $ 682,000 1.3 Restricted stock 687,000 1.3 Restricted stock units 990,000 2.8 Restricted stock units (to be settled in cash) 2,246,000 4.5 Total $ 4,605,000 We have a policy of utilizing treasury shares to satisfy stock option exercises, stock unit conversions and restricted stock awards that are equity-classified awards.

Industry Segment and Geographic

Industry Segment and Geographic Information	12 Months Ended
Industry Segment and Geographic Information	Dec. 31, 2020
9- Industry Segment and Geographic Information	(9) Industry Segment and Geographic Information We operate in one reportable industry segment: developing and manufacturing products primarily for medical applications and have no foreign operating subsidiaries. We have other product lines which include pressure relief valves and inflation systems, which are sold primarily to the aviation and marine industries. Due to the similarities in product technologies and manufacturing processes, these products are managed as part of our medical products segment. Our revenues from sales to customers outside the United States totaled approximately 42 percent, 36 percent and 37 percent of our net revenues in 2020, 2019 and 2018, respectively. We have no assets located outside the United States.

Employee Retirement and Benefit

Employee Retirement and Benefit Plans	12 Months Ended
Employee Retirement and Benefit Plans	Dec. 31, 2020
Employee Retirement and Benefit Plans
10- Employee Retirement and Benefit Plans	(10) Employee Retirement and Benefit Plans We sponsor a defined contribution 401(k) plan for all employees. Each participant may contribute certain amounts of eligible compensation. We make a matching contribution to the plan. Our contributions under this plan were $917,000, $845,000 and $752,000 in 2020, 2019 and 2018, respectively. The Company has a Nonqualified Deferred Compensation Plan for certain key management or highly-compensated employees. The plan allows for the deferral of salary and bonus compensation until retirement or other specified payment events occur. Employees’ deferred compensation amounts are deemed to be invested in certain investment funds, indexes or vehicles selected by our Compensation Committee and designated by each participant and their deferral balances are adjusted for earnings based upon the performance of these deemed investments. Our deferred compensation obligation under the plan was $1,544,000 and $3,266,000 at December 31, 2020 and 2019, respectively. These amounts are reflected in “Other Liabilities and Deferred Credits” in the accompanying consolidated balance sheets.

Commitment and Contingencies

Commitment and Contingencies	12 Months Ended
Commitment and Contingencies	Dec. 31, 2020
Commitment and Contingencies
11- Commitment and Contingencies	(11) Commitments and Contingencies From time to time and in the ordinary course of business, we may be subject to various claims, charges and litigation. In some cases, the claimants may seek damages, as well as other relief, which, if granted, could require significant expenditures. We accrue the estimated costs of settlement or damages when a loss is deemed probable and such costs are estimable, and accrue for legal costs associated with a loss contingency when a loss is probable and such amounts are estimable. Otherwise, these costs are expensed as incurred. If the estimate of a probable loss or defense costs is a range and no amount within the range is more likely, we accrue the minimum amount of the range. As of December 31, 2020, we had no ongoing litigation or arbitration for such matters. We had a dispute which was favorably settled in the third quarter of 2007. This settlement was amended in December 2008. The amended settlement agreement provides that we may receive annual payments from 2009 through 2024. We have not recorded $2.0 million in potential future payments under this settlement as of December 31, 2020 due to the uncertainty of payment. We have arrangements with three of our executive officers pursuant to which the termination of their employment under certain circumstances would result in lump sum payments to them. Termination under such circumstances at December 31, 2020, could have resulted in payments aggregating $4.9 million. At December 31, 2020, the Company had lease obligations totaling $272,000 with certain lessors for equipment and facilities for 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2020
Summary of Significant Accounting Policies
Principles of Consolidation	The consolidated financial statements include the accounts of Atrion Corporation and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain prior-year balances have been reclassified in order to conform to the current year presentation.
Estimates	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Cash and Cash Equivalents and Investments	Cash and cash equivalents include cash on hand and cash deposits in the bank as well as money market funds and debt securities with maturities at the time of purchase of 90 days or less. Cash deposits in the bank include amounts in operating accounts, savings accounts and money market accounts. Our investments consist of corporate and government bonds, commercial paper, mutual funds and equity securities. We classify our investment securities in one of three categories: held-to-maturity, available-for-sale, or trading. Securities that we have the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity securities. We report our available-for-sale and trading securities at fair value with changes in fair value recognized in other investment income (loss) in the Consolidated Statement of Income. Prior to our adoption of ASU 2016-01, Financial Instruments-Overall, Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) We consider as current assets those investments which will mature in the next 12 months including interest receivable on long-term bonds. The remaining investments are considered non-current assets including our investment in equity securities which we intend to hold longer than 12 months. We periodically evaluate our investments for impairment. The components of the Company’s cash and cash equivalents and our short and long-term investments as of December 31, 2020 and 2019 are as follows (in thousands): December 31, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 16,628 $ 38,942 Money market funds 4,822 3,460 Commercial paper 1,000 2,646 Total cash and cash equivalents $ 22,450 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 5,178 $ 6,778 Bonds (held-to-maturity) 14,101 16,988 Allowance for credit losses (21 ) - Total short-term investments $ 19,258 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 563 $ 1,105 Bonds (held-to-maturity) 41,619 27,845 Allowance for credit losses (52 ) - Equity securities (available for sale) 4,077 2,822 Total long-term investments $ 46,207 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 87,915 $ 100,586
Account Receivables	Accounts receivable are recorded at the original sales price to the customer. We maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments. The allowance for doubtful accounts is updated periodically to reflect our estimate of collectability. Accounts are written off when we determine the receivable will not be collected.
Inventories	Inventories are stated at the lower of cost (including materials, direct labor and applicable overhead) or net realizable value. Cost is determined by using the first-in, first-out method. The following table details the major components of inventory (in thousands): December 31, 2020 2019 Raw materials $ 20,308 $ 18,157 Work in process 11,339 8,525 Finished goods 18,651 15,411 Total inventories $ 50,298 $ 42,093
Accounts Payable	We reflect disbursements as trade accounts payable until such time as payments are presented to our bank for payment. At December 31, 2020 and 2019, disbursements totaling approximately $1,434,000 and $1,236,000, respectively, had not been presented for payment to our bank.
Income Taxes	We account for income taxes utilizing Accounting Standards Codification (ASC 740), Income Taxes ASC 740 also requires the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attributes of income tax positions taken or expected to be taken on a tax return. Under ASC 740, the impact of an uncertain tax position taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more-likely-than-not of being sustained. Our uncertain tax positions are recorded within “Other non-current liabilities” in the accompanying consolidated balance sheets. We classify interest expense on underpayments of income taxes and accrued penalties related to unrecognized tax benefits in the income tax provision. We account for excess tax benefits (“windfalls”) and deficiencies (“shortfalls”) related to employee stock compensation as required by ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting During the years ended December 31, 2020 and 2019, we made quarterly payments in excess of federal and state income taxes due of approximately $1,525,000 and $4,000, respectively. These amounts were recorded in prepaid expenses and other current assets on our consolidated balance sheets.
Property, Plant and Equipment	Property, plant and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Additions and improvements are capitalized, including all material, labor and engineering costs to design, install or improve the asset. Expenditures for repairs and maintenance are charged to expense as incurred. The following table represents a summary of property, plant and equipment at original cost (in thousands): December 31, Useful 2020 2019 Lives Land $ 5,511 $ 5,511 — Buildings 35,114 34,582 30-40 yrs. Machinery and equipment 178,287 160,897 3-15 yrs. Total property, plant and equipment $ 218,912 $ 200,990 Depreciation expense of $11,533,000, $10,733,000 and $9,003,000 was recorded for the years ended December 31, 2020, 2019 and 2018, respectively. Depreciation expense is recorded in either cost of goods sold or operating expenses based on the associated assets’ usage.
Patents and Licenses	Costs for patents and licenses acquired are determined at acquisition date. Patents and licenses are amortized over the useful lives of the individual patents and licenses, which are from seven to 20 years. Patents and licenses are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.
Goodwill	Goodwill represents the excess of cost over the fair value of tangible and identifiable intangible net assets acquired. Annual impairment testing for goodwill is performed in the fourth quarter of each year using a qualitative assessment on goodwill impairment to determine whether it is more likely than not that the carrying value of our reporting units exceeds their fair value. If necessary, a two-step goodwill impairment analysis is performed. Goodwill is also reviewed whenever events or changes in circumstances indicate a change in value may have occurred. We have identified three reporting units where goodwill was recorded for purposes of testing goodwill impairment annually: (1) Atrion Medical Products, Inc., (2) Halkey-Roberts Corporation and (3) Quest Medical, Inc. The total carrying amount of goodwill in each of the years ended December 31, 2020 and 2019 was $9,730,000. Our evaluation of goodwill during each year resulted in no impairment losses.
Current Accrued Liabilities	The items comprising current accrued liabilities are as follows (in thousands): December 31, 2020 2019 Accrued payroll and related expenses $ 5,656 $ 4,233 Accrued vacation 276 311 Other accrued liabilities 633 604 Total accrued liabilities $ 6,565 $ 5,148
Revenues	We recognize revenue when obligations under the terms of a contract with our customer are satisfied. This occurs with the transfer of control of our products to customers when products are shipped. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales and other taxes we may collect concurrent with revenue-producing activities are excluded from revenue. We believe that our medical device business will benefit in the long term from an aging world population along with an increase in life expectancy. In the near term however, demand for our products fluctuates based on our customers’ requirements which are driven in large part by their customers’ or patients’ needs for medical care which does not always follow broad economic trends. This affects the nature, amount, timing and uncertainty of our revenue. Also, changes in the value of the United States dollar relative to foreign currencies could make our products more or less affordable and therefore affect our sales in international markets. A summary of revenues by geographic area, based on shipping destination, for 2020, 2019 and 2018 is as follows (in thousands): Year ended December 31, 2020 2019 2018 United States $ 85,682 $ 98,496 $ 95,757 Germany 9,712 7,996 8,898 Other countries less than 5% of revenues 52,197 48,574 47,793 Total $ 147,591 $ 155,066 $ 152,448 We expense sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling expense. Atrion has contracts in place with customers for equipment leases, equipment financing, and equipment and other services. These contracts represent less than four percent of our total revenue in all periods presented herein. A portion of these contracts contain multiple performance obligations including embedded leases. For such arrangements, we historically allocated revenue to each performance obligation which is capable of being distinct and accounted for as a separate performance obligation based on relative standalone selling prices. We generally determine standalone selling prices based on observable inputs, primarily the prices charged to customers. Beginning July 1, 2018, for agreements with an embedded lease component, we adopted the practical expedient in ASU 2018-11 Leases: Targeted Improvements Our fixed monthly equipment rentals to customers are accounted for as operating leases under ASU 2016-02, Leases A limited number of our contracts have variable consideration including tiered pricing and rebates which we monitor closely for potential constraints on revenue. For these contracts we estimate our position quarterly using the most-likely-outcome method, including customer-provided forecasts and historical buying patterns, and we accrue for any asset or liability these arrangements may create. The effect of accruals for variable consideration on our consolidated financial statements is immaterial. We do not disclose the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount which we have the right to invoice. We believe that the complexity added to our disclosures by the inclusion of a large amount of insignificant detail in attempting to disclose information under ASC 606 about immaterial contracts would potentially obscure more useful and important information.
Leases to Customers	The lease assets from our sales type leases are recorded in our accounts receivable in the accompanying consolidated balance sheets, and as of December 31, 2020 and 2019 the balance totaled $315,000 and $398,000 respectively. Our equipment treated as leases to customers under ASC 842 is included in our Property, Plant and Equipment on our consolidated balance sheets. After our adoption of ASU 2018-11, the cost of the assets and associated depreciation that remain under lease agreements is immaterial. Due to the immaterial amount of revenue from our lessor activity, all other lessor disclosures under ASC 842 have been omitted.
Leased Property and Equipment	As a lessee, we have three leases in total for equipment and facilities used internally, which we account for as operating leases. At December 31, 2020, our right-of-use asset balance was $295,000 and our lease liability at December 31, 2020 for these leases was $272,000. The monthly expense of $27,000 for these operating leases, which are our only lessee arrangements, is immaterial and therefore all other lessee disclosures under ASC 842 have been omitted.
Research and Development Costs	Research and Development, or R&D, costs relating to the development of new products and improvements of existing products are expensed as incurred.
Stock-Based Compensation	We have a stock-based compensation plan covering certain of our officers, directors and key employees. As explained in detail in Note 8, we account for stock-based compensation utilizing the fair value recognition provisions of ASC 718, Compensation-Stock Compensation,
Liability-classified awards	The Company classifies certain awards that can or will be settled in cash as liability awards. The fair value of a liability-classified award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded to general and administrative expense over the vesting period of the award.
New Accounting Pronouncements	In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities and trade and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. On January 1, 2020, we adopted the guidance prospectively with a cumulative adjustment to retained earnings. Atrion has not restated comparative information for 2019 and, therefore, the comparative information for 2019 is reported under the old model and is not comparable to the information presented for 2020. At adoption, we recognized an incremental allowance for credit losses on our allowance for credit losses related to our held-to-maturity debt securities of approximately $42,000 and our trade accounts receivable of approximately $4,000. Additionally, we recorded an approximately $36,000 decrease in retained earnings associated with the increased estimated credit losses on our trade accounts receivable and investments. The impact on our operating results for 2020 from our adoption of this pronouncement was not material. From time to time new accounting pronouncements applicable to us are issued by the FASB, or other standards setting bodies, which we will adopt as of the specified effective date. Unless otherwise discussed, we believe the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.
Fair Value Measurements	Accounting standards use a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers are: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists therefore requiring an entity to develop its own assumptions. As of December 31, 2020 and 2019, we held investments in commercial paper, bonds, money market funds, mutual funds and equity securities that are required to be measured for disclosure purposes at fair value on a recurring basis. The fair values of these investments and their tier levels are shown in Note 2 below.
Concentration of Credit Risk	Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments and accounts receivable. We have investments in money market funds, bonds and commercial paper. As a result, we are exposed to potential loss from market risks that may occur as a result of changes in interest rates, changes in credit quality of the issuer and otherwise. These securities have a higher degree of, and a greater exposure to, credit or default risk and may be less liquid in times of economic weakness or market disruptions as compared with cash deposits. For accounts receivable, we perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral. We maintain reserves for possible credit losses. As of December 31, 2020 and 2019, we had allowances for doubtful accounts of approximately $41,000 and $36,000, respectively. The carrying amount of the receivables approximates their fair value. We had two customers which accounted for 12% each of our accounts receivable as of December 31, 2020 and one customer which accounted for 12% of our accounts receivable as of December 31, 2019.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Dec. 31, 2020
Summary of Significant Accounting Policies
Schedule of Cash and Cash equivalents	December 31, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 16,628 $ 38,942 Money market funds 4,822 3,460 Commercial paper 1,000 2,646 Total cash and cash equivalents $ 22,450 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 5,178 $ 6,778 Bonds (held-to-maturity) 14,101 16,988 Allowance for credit losses (21 ) - Total short-term investments $ 19,258 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 563 $ 1,105 Bonds (held-to-maturity) 41,619 27,845 Allowance for credit losses (52 ) - Equity securities (available for sale) 4,077 2,822 Total long-term investments $ 46,207 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 87,915 $ 100,586
Schedule of Inventories	December 31, 2020 2019 Raw materials $ 20,308 $ 18,157 Work in process 11,339 8,525 Finished goods 18,651 15,411 Total inventories $ 50,298 $ 42,093
Schedule of Property, Plant and Equipment	December 31, Useful 2020 2019 Lives Land $ 5,511 $ 5,511 — Buildings 35,114 34,582 30-40 yrs. Machinery and equipment 178,287 160,897 3-15 yrs. Total property, plant and equipment $ 218,912 $ 200,990
Schedule of Current Accrued Liabilities	December 31, 2020 2019 Accrued payroll and related expenses $ 5,656 $ 4,233 Accrued vacation 276 311 Other accrued liabilities 633 604 Total accrued liabilities $ 6,565 $ 5,148
Schedule of geographic area	Year ended December 31, 2020 2019 2018 United States $ 85,682 $ 98,496 $ 95,757 Germany 9,712 7,996 8,898 Other countries less than 5% of revenues 52,197 48,574 47,793 Total $ 147,591 $ 155,066 $ 152,448
Schedule of product line Information	` Year ended December 31, 2020 2019 2018 Fluid Delivery $ 75,228 $ 72,117 $ 70,606 Cardiovascular 48,524 54,799 50,904 Ophthalmology 4,700 7,124 10,473 Other 19,139 21,026 20,465 Total $ 147,591 $ 155,066 $ 152,448

Investments (Tables)

Investments (Tables)	12 Months Ended
Investments (Tables)	Dec. 31, 2020
Investments
Schedule of investments, held-to-maturity securities	Held-to-Maturity Bonds Credit Quality Indicators Asset Backed Bonds Fed Govt. Bonds/Notes Municipal Bonds Corporate Bonds Totals AAA/AA/A $ 1,413 $ 3,222 $ 637 $ 32,126 $ 37,398 BBB/BB - - - 18,322 18,322 TOTAL $ 1,413 $ 3,222 $ 637 $ 50,448 $ 55,720
Schedule of unrealized gains and losses	Gross Unrealized Level Cost Gains Losses Fair Value As of December 31, 2020: Money market funds 1 4,822 $ — $ — $ 4,822 Commercial paper 2 6,178 $ — $ — $ 6,178 Bonds 2 55,720 $ 505 $ (44 ) $ 56,181 Mutual funds 1 599 $ — $ (36 ) $ 563 Equity investments 2 5,675 $ — $ (1,598 ) $ 4,077 As of December 31, 2019: Money market funds 1 3,460 $ — $ — $ 3,460 Commercial paper 2 9,424 $ 2 $ — $ 9,426 Bonds 2 44,833 $ 138 $ (19 ) $ 44,952 Mutual funds 1 1,052 $ 53 $ — $ 1,105 Equity investments 2 5,675 $ — $ (2,853 ) $ 2,822

Patents and Licenses (Tables)

Patents and Licenses (Tables)	12 Months Ended
Patents and Licenses (Tables)	Dec. 31, 2020
Patents and Licenses
Schedule of Patents and Licenses	December 31, 2020 December 31, 2019 Weighted Average Gross Accumulated Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,419 15.67 $ 13,840 $ 12,301
Schedule of Future Amortization Expense	2021 $ 119 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2020
Income Taxes
Schedule of Provision for Income Taxes	Year ended December 31, 2020 2019 2018 Current — Federal $ 3,166 $ 3,508 $ 6,405 — State 904 1,090 2,001 4,070 4,598 8,406 Deferred — Federal 2,111 1,660 (626 ) — State 171 149 1 2,282 1,809 (625 ) Provision for Income Taxes $ 6,352 $ 6,407 $ 7,781
Schedule of Deferred Tax Liabilities	2020 2019 Deferred tax liabilities (assets): Property, plant and equipment $ 11,532 $ 9,697 Patents and goodwill 1,775 1,756 Benefit plans (1,976 ) (2,131 ) Inventories (420 ) (350 ) Capital loss carryover (544 ) (556 ) Other (179 ) (513 ) 10,188 7,903 Plus: Valuation allowance 580 593 Total deferred tax liabilities $ 10,768 $ 8,496
Schedule of Statutory Federal Income Tax Rate	Year ended December 31, 2020 2019 2018 Income tax expense at the statutory federal income tax rate $ 8,078 $ 9,065 $ 8,828 Increase (decrease) resulting from: State income taxes 838 978 1,572 R&D tax credits (1,589 ) (1,470 ) (1,212 ) Foreign-derived intangible income deduction (1,051 ) (1,700 ) (1,000 ) Excess tax benefit from stock compensation (81 ) (412 ) (95 ) Change in valuation allowance (13 ) (16 ) - Uncertain tax positions (450 ) (42 ) (373 ) Other, net 619 4 61 Provision for Income Taxes $ 6,352 $ 6,407 $ 7,781
Schedule of Deferred Tax Valuation Allowance	Gross unrecognized tax benefits at January 1, 2018 $ 865 Increase in tax positions for prior years 25 Increase in tax positions for current years — Lapse in statutes of limitation (397 ) Gross unrecognized tax benefits at December 31, 2018 $ 493 Increase in tax positions for prior years 19 Increase in tax positions for current year — Lapse in statutes of limitation (62 ) Gross unrecognized tax benefits at December 31, 2019 $ 450 Increase in tax positions for prior years 8 Increase in tax positions for current year — Lapse in statutes of limitation (458 ) Gross unrecognized tax benefits at December 31, 2020 $ —

Income Per Share (Tables)

Income Per Share (Tables)	12 Months Ended
Income Per Share (Tables)	Dec. 31, 2020
Income Per Share
Schedule of Computation for Basic and Diluted Income Per Share	Year ended December 31, 2020 2019 2018 (In thousands, except per share amounts) Net Income $ 32,115 $ 36,761 $ 34,255 Weighted average basic shares outstanding 1,836 1,855 1,853 Add: Effect of dilutive securities 5 8 5 Weighted average diluted shares outstanding 1,841 1,863 1,858 Net Income per share Basic $ 17.49 $ 19.82 $ 18.49 Diluted $ 17.44 $ 19.73 $ 18.44

Stock-based Compensation (Table

Stock-based Compensation (Tables)	12 Months Ended
Stock-based Compensation (Tables)	Dec. 31, 2020
Stock-based Compensation
Schedule of stock option transactions	Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2019 20,000 $ 501.03 2.3 years Granted — — Exercised — — Outstanding at December 31, 2020 20,000 $ 501.03 1.3 years Exercisable at December 31, 2020 12,000 $ 501.03 1.3 years
Schedule of non- vested restricted stock	Nonvested Shares Shares Weighted Average Award Date Fair Value Per Share Restricted stock at December 31, 2019 3,540 $ 445.47 Granted in 2020 — — Vested in 2020 (1,180 ) $ 445.47 Restricted stock at December 31, 2020 2,360 $ 445.47
Schedule of restricted stock units	Nonvested Stock Units Restricted Stock Units Weighted Average Award Date Fair Value Per Unit Director’s Stock Units Weighted Average Award Date Fair Value Per Unit Nonvested at December 31, 2019 3,601 $ 623.19 — Added 33 $ 635.04 16 $ 711.75 Forfeited (40 ) $ 766.48 — Vested (479 ) $ 388.02 (16 ) $ 711.75 Nonvested at December 31, 2020 3,115 $ 657.70 —
Schedule of stock based compensation	Unrecognized Compensation Cost Weighted Average Remaining Years in Amortization Period Stock options $ 682,000 1.3 Restricted stock 687,000 1.3 Restricted stock units 990,000 2.8 Restricted stock units (to be settled in cash) 2,246,000 4.5 Total $ 4,605,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash and cash equivalents
Cash deposits	$ 16,628,000	$ 38,942,000
Money market funds	4,822,000	3,460,000
Commercial paper	1,000,000	2,646,000
Total cash and cash equivalents	22,450,000	45,048,000	$ 58,753,000	$ 30,136,000
Short-term investments
Commercial paper (held-to-maturity)	5,178,000	6,778,000
Bonds (held-to-maturity)	14,101,000	16,988,000
Allowance for credit losses	(21,000)	0
Total short-term investments	19,258,000	23,766,000
Long-term investments
Mutual funds (available for sale)	563,000	1,105,000
Bonds (held-to-maturity)	41,619,000	27,845,000
Allowance for credit losses	(52,000)	0
Equity securities (available for sale)	4,077,000	2,822,000
Total long-term investments	46,207,000	31,772,000
Total cash, cash equivalents and short and long-term investments	$ 87,915,000	$ 100,586,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Raw material	$ 20,308	$ 18,157
Work in process	11,339	8,525
Finished goods	18,651	15,411
Total inventories	$ 50,298	$ 42,093

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Total Property, plan and Equipment	$ 218,912	$ 200,990
Property and Equipment	94,935	84,606
Machinery and Equipment [Member]
Property and Equipment	$ 178,287	160,897
Machinery and Equipment [Member] \| Minimum [Member]
Property and Equipment estimated useful lives	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property and Equipment estimated useful lives	15 years
Land [Member]
Property and Equipment	$ 5,511	5,511
Buildings [Member]
Property and Equipment	$ 35,114	$ 34,582
Buildings [Member] \| Minimum [Member]
Property and Equipment estimated useful lives	30 years
Buildings [Member] \| Maximum [Member]
Property and Equipment estimated useful lives	40 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Accrued payroll and related expenses	$ 5,656	$ 4,233
Accrued vacation	276	311
Other accrued liabilities	633	604
Total accrued liabilties	$ 6,565	$ 5,148

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Total Revenues	$ 147,591	$ 155,066	$ 152,448
Other countries less than 5% of revenues	52,197	48,574	47,793
Unites States [Member]
Total Revenues	85,682	98,496	95,757
Germany [Member]
Total Revenues	$ 9,712	$ 7,996	$ 8,898

Summary of Significant Accoun_9

Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Total Revenues	$ 147,591	$ 155,066	$ 152,448
Other	19,139	21,026	20,465
Ophthalmology [Member]
Total Revenues	4,700	7,124	10,473
Cardiovascular [Member]
Total Revenues	48,524	54,799	50,904
Fluid Delivery [Member]
Total Revenues	$ 75,228	$ 72,117	$ 70,606

Summary of Significant Accou_10

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income taxes due	$ 1,525,000	$ 4,000
Goodwill	9,730,000	9,730,000
Allowances for doubtful accounts	41,000	36,000
Trade account receivable	4,000
Decrease in retained earnings	36,000
Monthly expense	27,000
Right- of- use- asset	295,000
Allowance for credit losses	42,000
Lease liability	272,000
Accounts receivable	$ 315,000	398,000
Payment due	30 days
Useful lives	20 years
Depereciation expense	$ 11,533,000	10,733,000	$ 9,003,000
Accounts payable	$ 1,434,000	$ 1,236,000
Two Customer [Member]
Accounts receivables carrying rate	12.00%
One Customer [Member]
Accounts receivables carrying rate		12.00%

Investments (Details)

Investments (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Debt securities, held-to-maturity	$ 55,720,000
Mutual funds (available for sale) [Member]
Debt securities, held-to-maturity	599,000	$ 1,052,000
Gross Unrealized Fair Value	563,000	1,105,000
Gross Unrealized Gains	0	53,000
Gross Unrealized Losses	(36,000)	0
Money Market Funds [Member]
Debt securities, held-to-maturity	4,822,000	3,460,000
Gross Unrealized Fair Value	4,822,000	3,460,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Commercial Paper [Member]
Debt securities, held-to-maturity	6,178,000	9,424,000
Gross Unrealized Fair Value	6,178,000	9,426,000
Gross Unrealized Gains	0	2,000
Gross Unrealized Losses	0	0
Bonds [Member]
Debt securities, held-to-maturity	55,720,000	44,833,000
Gross Unrealized Fair Value	56,181,000	44,952,000
Gross Unrealized Gains	505,000	138,000
Gross Unrealized Losses	(44,000)	(19,000)
Equity investments [Member]
Debt securities, held-to-maturity	5,675,000	5,675,000
Gross Unrealized Fair Value	4,077,000	2,822,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	$ (1,598,000)	$ (2,853,000)

Investments (Details 1)

Investments (Details 1) $ in Thousands	Dec. 31, 2020USD ($)
Debt securities, held-to-maturity	$ 55,720
AAA /AA/A [Member]
Debt securities, held-to-maturity	37,398
BBB/BB [Member]
Debt securities, held-to-maturity	18,322
Assets Baked Bonds [Member]
Debt securities, held-to-maturity	1,413
Assets Baked Bonds [Member] \| AAA /AA/A [Member]
Debt securities, held-to-maturity	1,413
Fed Govt. Bonds/Notes [Member]
Debt securities, held-to-maturity	3,222
Fed Govt. Bonds/Notes [Member] \| AAA /AA/A [Member]
Debt securities, held-to-maturity	3,222
Fed Govt. Bonds/Notes [Member] \| BBB/BB [Member]
Debt securities, held-to-maturity	0
Municipal Bonds [Member]
Debt securities, held-to-maturity	637
Municipal Bonds [Member] \| AAA /AA/A [Member]
Debt securities, held-to-maturity	637
Municipal Bonds [Member] \| BBB/BB [Member]
Debt securities, held-to-maturity	0
Corporate Bonds [Member]
Debt securities, held-to-maturity	50,448
Corporate Bonds [Member] \| AAA /AA/A [Member]
Debt securities, held-to-maturity	32,126
Corporate Bonds [Member] \| BBB/BB [Member]
Debt securities, held-to-maturity	18,322
Asset Backed Bonds [Member] \| BBB/BB [Member]
Debt securities, held-to-maturity	$ 0

Investments (Details Narrative)

Investments (Details Narrative)	12 Months Ended
Investments (Details Narrative)	Dec. 31, 2020USD ($)
Allowance for credit losses related to long term investments	$ 18,000
Allowance for credit losses related to short term investments	$ 12,000
Maximum [Member] \| Bonds [Member]
Securities Maturity	12 years

Patents and Licenses (Details)

Patents and Licenses (Details) - USD ($) $ in Thousands	12 Months Ended
Patents and Licenses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Patents and Licenses
Accumulated Amortization	$ 12,419	$ 12,301
Weighted Average Original Life (years)	15 years 8 months 1 day	15 years 8 months 1 day
Gross Carrying Amount	$ 13,840	$ 13,840

Patents and Licenses (Details 1

Patents and Licenses (Details 1) $ in Thousands	Dec. 31, 2020USD ($)
Patents and Licenses
2021	$ 119
2022	117
2023	113
2024	113
2025	$ 112

Patents and Licenses (Details N

Patents and Licenses (Details Narrative) - USD ($)	12 Months Ended
Patents and Licenses (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Patents and Licenses
Aggregate amortization expense	$ 119,000	$ 119,000

Line of Credit (Details Narrati

Line of Credit (Details Narrative) - USD ($)	12 Months Ended
Line of Credit (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Line of Credit
Credit facility percentage	1.035%
Credit facility percentage plus	0.875%
Credit facility	$ 75,000,000	$ 75,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Federal income tax, current	$ 3,166	$ 3,508	$ 6,405
State income tax, current	904	1,090	2,001
Income tax, current	4,070	4,598	8,406
Federal income tax, deferred	2,111	1,660	(626)
State income tax, deferred	171	149	1
Income tax, deferred	2,282	1,809	(625)
Provision for Income Taxes	$ 6,352	$ 6,407	$ 7,781

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax liabilities (assets):
Property, plant and equipment	$ 11,532	$ 9,697
Patents and goodwill	1,775	1,756
Benefit plans	(1,976)	(2,131)
Inventories	(420)	(350)
Capital loss carryover	(544)	(556)
Other	(179)	(513)
Deferred tax liabilities (assets)	10,188	7,903
Plus: Valuation allowance	580	593
Total deferred tax liabilities	$ 10,768	$ 8,496

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	12 Months Ended
Income Taxes (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Income tax expense at the statutory federal income tax rate	$ 8,078,000	$ 9,065,000	$ 8,828,000
Increase (decrease) resulting from:
State income taxes	838,000	978,000	1,572,000
R&D tax credits	(1,589,000)	(1,470,000)	(1,212,000)
Foreign-derived intangible income deduction	(1,051,000)	(1,700,000)	(1,000,000)
Excess tax benefit from stock compensation	(81,000)	(412,000)	(95,000)
Change in valuation allowance	(13,000)	(16,000)	0
Uncertain tax positions	(450,000)	(42,000)	(373,000)
Other, net	619,000	4,000	61,000
Provision for Income Taxes	$ 6,352,000	$ 6,407,000	$ 7,781,000

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	12 Months Ended
Income Taxes (Details 3) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Gross unrecognized tax benefits beginning balance	$ 450,000	$ 493,000	$ 865,000
Increase in tax positions for prior years	8,000	19,000	25,000
Increase in tax positions for current year	0	0	0
Lapse in statutes of limitation	(458,000)	(62,000)	(397,000)
Gross unrecognized tax benefits ending balance	$ 0	$ 450,000	$ 493,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Valuation allowance	$ 580,000
Remaining capital loss carryover deduction	2,600,000
Unrecognized tax benefits, accrued interest		$ 20,000	$ 19,000
Unrecognized tax benefits, net interest benefit	$ 35,000	$ 16,000	$ 18,000

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)	12 Months Ended
Stockholders Equity (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018	May 21, 2015
Stockholders' Equity:
Stock repurchase program, shares authorized to be repurchased							250,000
Stock repurchase program, shares remained eligible for repurchase	202,018	231,765
Total repurchased shares of common stock	29,747
Non-cash dividend equivalents	$ 24,000	$ 22,000	$ 25,000
Cash dividend payments per share				$ 1.75	$ 1.55	$ 1.35

Income Per Share (Details)

Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Per Share
Net income	$ 32,115	$ 36,761	$ 34,255
Weighted average basic shares outstanding	1,836	1,855	1,853
Add: Effect of dilutive securities	5	8	5
Weighted average diluted shares outstanding	1,841	1,863	1,858
Earnings per share:
Basic	$ 17.49	$ 19.82	$ 18.49
Diluted	$ 17.44	$ 19.73	$ 18.44

Income Per Share (Details Narra

Income Per Share (Details Narrative) - shares	12 Months Ended
Income Per Share (Details Narrative) - shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Per Share
Shares excluded from computation of weighted average diluted shares outstanding	6	7	501

Stock-based Compensation (Detai

Stock-based Compensation (Details)	12 Months Ended
Stock-based Compensation (Details)	Dec. 31, 2020$ / sharesshares
Shares
Outstanding at December 31, 2019 \| shares	20,000
Granted \| shares	0
Exercised \| shares	0
Outstanding at December 31, 2020 \| shares	20,000
Exercisable at December 31, 2020 \| shares	12,000
Weighted Average Exercise Price
Outstanding at December 31, 2019 \| $ / shares	$ 501.03
Granted \| $ / shares	0
Exercised \| $ / shares	0
Outstanding at December 31, 2020 \| $ / shares	501.03
Exercisable at December 31, 2020 \| $ / shares	$ 501.03
Weighted Average Remaining Contractual Term
Outstanding at December 31, 2019	2 years 3 months 18 days
Outstanding at December 31, 2020	1 year 3 months 18 days
Exercisable at December 31, 2020	1 year 3 months 18 days

Stock-based Compensation (Det_2

Stock-based Compensation (Details 1)	12 Months Ended
Stock-based Compensation (Details 1)	Dec. 31, 2020$ / sharesshares
Nonvested Shares
Nonvested restricted stock outstanding, beginning balance \| shares	3,540
Granted in 2020 \| shares	0
Vested in 2020 \| shares	(1,180)
Nonvested restricted stock outstanding, Ending balance \| shares	2,360
Weighted Average Award Date Fair Value Per Share
Weighted Average Award Date Fair Value Per Share, beginning balance \| $ / shares	$ 445.47
Weighted Average Award Date Fair Value Per Share, Granted in 2020 \| $ / shares	0
Weighted Average Award Date Fair Value Per Share, Vested in 2020 \| $ / shares	445.47
Weighted Average Award Date Fair Value Per Share, Ending balance \| $ / shares	$ 445.47

Stock-based Compensation (Det_3

Stock-based Compensation (Details 2)	12 Months Ended
Stock-based Compensation (Details 2)	Dec. 31, 2020$ / sharesshares
Restricted Stock Units [Member]
Nonvested Stock Units Beginning balance, Shares	3,601
Nonvested Stock Units Added	33
Nonvested Stock Units Forfeited	(40)
Nonvested Stock Units Vested	(479)
Nonvested Stock Units Ening balance, Shares	3,115
Weighted Average Award Date Fair Value Per Unit, Added \| $ / shares	$ 635.04
Weighted Average Award Date Fair Value Per Unit, Vested \| $ / shares	388.02
Weighted Average Award Date Fair Value Per Unit, Beginning balance \| $ / shares	623.19
Weighted Average Award Date Fair Value Per Unit, Forfeited \| $ / shares	766.48
Weighted Average Award Date Fair Value Per Unit, Ending balance \| $ / shares	$ 657.70
Directors Stock Units [Member]
Nonvested Stock Units Beginning balance, Shares	0
Nonvested Stock Units Added	16
Nonvested Stock Units Forfeited	0
Nonvested Stock Units Vested	(16)
Nonvested Stock Units Ening balance, Shares	0
Weighted Average Award Date Fair Value Per Unit, Added \| $ / shares	$ 711.75
Weighted Average Award Date Fair Value Per Unit, Vested \| $ / shares	$ 711.75

Stock-based Compensation (Det_4

Stock-based Compensation (Details 3)	12 Months Ended
Stock-based Compensation (Details 3)	Dec. 31, 2020USD ($)
Total Unrecognized Compensation Cost	$ 4,605,000
Restricted Stock Units [Member]
Weighted Average Remaining Years in Amortization Period	2 years 9 months 18 days
Unrecognized Compensation Cost, other than options	$ 990,000
Restricted stock units (to be settled in cash) [Member]
Unrecognized Compensation Cost	$ 2,246,000
Weighted Average Remaining Years in Amortization Period	4 years 6 months
Stock Option [Member]
Weighted Average Remaining Years in Amortization Period	1 year 3 months 18 days
Unrecognized Compensation Cost, stock options	$ 682,000
Restricted Stock [Member]
Weighted Average Remaining Years in Amortization Period	1 year 3 months 18 days
Unrecognized Compensation Cost, other than options	$ 687,000

Stock-based Compensation (Det_5

Stock-based Compensation (Details Narrative) - USD ($)	12 Months Ended
Stock-based Compensation (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock compensation plan, total intrinsic values of options outstanding	$ 2,800,000
Total intrinsic value of exercisable options	$ 1,700,000
Discount percentage for post vesting restrictions	11.20%
Fair value restricted stock awards vested	$ 762,000	$ 994,000	$ 699,000
Weighted average grant date fair value	$ 130.35
Accrued dividend equivalents	$ 2,496,000
Stock-based compensation expense, total tax benefit recognized	444,000	765,000	441,000
Total fair value of stock units that vested	250,000
Stock-based compensation expense	1,731,000	1,682,000	1,659,000
General And Administrative Expense [Member]
Stock-based compensation expense	1,731,000	1,682,000	1,659,000
Directors [Member]
Total fair value of stock units that vested	$ 11,000	7,000	6,000
2006 Equity Incentive Plan
Weighted average grant date fair value	$ 646.90
Number of common shares reserved for future issuance	200,000
Granted shares of restricted stock	3,865
2006 Equity Incentive Plan \| Restricted Stock [Member]
Terms of award	the restrictions usually lapse over a five-year period
Non Employee Directors [Member]
Value of stock units held for the accounts	$ 2,324,000
Non Employee Directors [Member] \| 2006 Plan [Member]
Total value of stock awards		$ 240,000	$ 240,000

Industry Segment and Geograph_2

Industry Segment and Geographic Information (Details Narrative)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue from sales	42.00%	36.00%	37.00%

Employee Retirement and Benef_2

Employee Retirement and Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Employee Retirement and Benefit Plans
Employees compensation	$ 917,000	$ 845,000	$ 752,000
Deferred compensation	$ 1,544,000	$ 3,266,000

Commitment and contingencies (D

Commitment and contingencies (Details Narrative)	Dec. 31, 2020USD ($)
Lease obligations	$ 272,000
Future payments	2,000,000
Three And Four Executive Officers [Member]
Aggeregate amount of employees	$ 4,900,000