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UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C. 20549  

FORM 10-Q  
☒    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  
  
For the quarterly period ended: September 30, 2022
or  
☐  Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  
  
For the transition period from ________________ to ________________    
Commission file number:  000-25426  
    https://cdn.kscope.io/c8b4f01c6076d94b3d9b7a103d259ccc-nati-20220930_g1.jpg
NATIONAL INSTRUMENTS CORPORATION  
(Exact name of registrant as specified in its charter)  
Delaware74-1871327
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
  
11500 North MoPac Expressway 
Austin,78759
Texas
(Address of principal executive offices) (Zip code)
 
Registrant's telephone number, including area code:  (512) 683-0100  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of exchange on which registered
Common Stock, $0.01 par valueNATINasdaq Stock Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.    
Large accelerated filer ☒
Accelerated filer
☐
Non-accelerated filer ☐
Smaller reporting company
☐
Emerging growth company 
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ 
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.  
ClassOutstanding at October 24, 2022
Common Stock, $0.01 par value130,568,539
1

NATIONAL INSTRUMENTS CORPORATION
INDEX  
Page No.
  
 
  
 
September 30, 2022 (unaudited) and December 31, 2021
  
 
(unaudited) for the three and nine months ended September 30, 2022 and 2021
  
 
(unaudited) for the three and nine months ended September 30, 2022 and 2021
  
 
(unaudited) for the nine months ended September 30, 2022 and 2021
(unaudited) for the three and nine months ended September 30, 2022 and 2021
  
  
  
  
  
  
 
  
  
  
  
  
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PART I - FINANCIAL INFORMATION  

Item 1. Financial Statements
NATIONAL INSTRUMENTS CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
September 30,December 31,
20222021
Assets(unaudited) 
Cash and cash equivalents$149,002 $211,106 
Accounts receivable, net380,792 341,275 
Inventories, net373,544 289,243 
Prepaid expenses and other current assets144,145 89,925 
Total current assets1,047,483 931,549 
Property and equipment, net254,127 253,668 
Goodwill593,148 575,992 
Intangible assets, net219,730 220,418 
Operating lease right-of-use assets59,906 58,641 
Other long-term assets71,140 74,717 
Total assets$2,245,534 $2,114,985 
Liabilities and stockholders' equity  
Accounts payable and accrued expenses$96,848 $83,218 
Accrued compensation61,166 111,261 
Deferred revenue - current118,257 137,818 
Operating lease liabilities - current13,288 13,137 
Other taxes payable61,002 59,109 
Debt, current25,000 — 
Other current liabilities52,079 40,671 
Total current liabilities427,640 445,214 
Deferred income taxes13,725 14,249 
Income tax payable - non-current40,646 54,195 
Deferred revenue - non-current50,177 32,822 
Operating lease liabilities - non-current32,027 30,468 
Debt, non-current542,768 300,000 
Other long-term liabilities15,066 14,340 
Total liabilities1,122,049 891,288 
Commitments and contingencies
Stockholders' equity:  
Preferred stock:  par value $0.01;  5,000,000 shares authorized; none issued and outstanding 
— — 
Common stock:  par value $0.01;  360,000,000 shares authorized; 130,568,539 shares and 132,293,898 shares issued and outstanding, respectively 
1,306 1,323 
Additional paid-in capital1,183,329 1,129,647 
Retained (deficit) earnings(18,135)112,858 
Accumulated other comprehensive loss(43,015)(20,131)
Total stockholders’ equity1,123,485 1,223,697 
Total liabilities and stockholders’ equity$2,245,534 $2,114,985 
The accompanying notes are an integral part of the financial statements. 

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NATIONAL INSTRUMENTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)  
  
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
    
Net sales:    
Product$389,620 $325,724 $1,088,110 $927,307 
Software maintenance38,308 41,438 120,589 121,733 
Total net sales427,928 367,162 1,208,699 1,049,040 
    
Cost of sales:    
Product139,823 99,072 378,154 286,485 
Software maintenance3,879 3,643 12,249 10,882 
Total cost of sales143,702 102,715 390,403 297,367 
    
Gross profit284,226 264,447 818,296 751,673 
    
Operating expenses:    
Sales and marketing119,951 117,065 365,015 345,048 
Research and development82,861 82,165 250,610 243,685 
General and administrative34,617 31,037 104,569 94,672 
Total operating expenses237,429 230,267 720,194 683,405 
Gain on sale of assets33,636 — 33,636 — 
Operating income80,433 34,180 131,738 68,268 
    
Other expense(5,150)(1,820)(8,622)(9,851)
Income before income taxes75,283 32,360 123,116 58,417 
Provision for income taxes13,376 5,183 23,539 9,438 
    
Net income$61,907 $27,177 $99,577 $48,979 
    
Basic earnings per share$0.47 $0.20 $0.75 $0.37 
    
Weighted average shares outstanding - basic132,044 133,031 132,040 132,657 
    
Diluted earnings per share$0.47 $0.20 $0.75 $0.37 
    
Weighted average shares outstanding - diluted132,581 133,686 133,001 133,829 
    
Dividends declared per share$0.28 $0.27 $0.84 $0.81 
The accompanying notes are an integral part of these financial statements. 
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NATIONAL INSTRUMENTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)  
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
    
Net income$61,907 $27,177 $99,577 $48,979 
Other comprehensive (loss) income, before tax and net of reclassification adjustments:    
Foreign currency translation adjustment(18,563)(5,675)(32,009)(10,585)
Unrealized loss on securities available-for-sale— (21)— (162)
Unrealized gain on derivative instruments3,960 4,243 11,987 18,605 
Other comprehensive (loss) income, before tax(14,603)(1,453)(20,022)7,858 
Tax expense related to items of other comprehensive income932 948 2,862 4,208 
Other comprehensive (loss) income, net of tax(15,535)(2,401)(22,884)3,650 
Comprehensive income$46,372 $24,776 $76,693 $52,629 
The accompanying notes are an integral part of these financial statements.

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NATIONAL INSTRUMENTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)  
Nine Months Ended
September 30,
20222021
Cash flow from operating activities:  
Net income$99,577 $48,979 
Adjustments to reconcile net income to net cash provided by operating activities:  
Disposal gain on sale of assets(33,636)— 
Depreciation and amortization68,828 73,418 
Stock-based compensation60,843 56,064 
(Gain) loss from equity-method investees(483)5,082 
Deferred income taxes928 (2,030)
Changes in operating assets and liabilities(204,987)(95,477)
Net cash (used in) provided by operating activities(8,930)86,036 
  
Cash flow from investing activities:  
Acquisitions, net of cash received(72,802)(19,784)
Capital expenditures(39,193)(26,147)
Proceeds from sale of assets40,987 — 
Capitalization of internally developed software(388)(1,246)
Additions to other intangibles(3,165)(2,317)
Payments to acquire equity-method investments— (15,753)
Sales and maturities of short-term investments— 59,714 
Net cash used in investing activities(74,561)(5,533)
 
Cash flow from financing activities:  
Proceeds from revolving line of credit268,000 100,000 
Principal payments on revolving line of credit(498,000)— 
Proceeds from term loan500,000 — 
Payments on term loan— (98,750)
Debt issuance costs(2,348)(1,993)
Proceeds from issuance of common stock25,444 25,438 
Repurchase of common stock(151,831)(25,000)
Dividends paid(111,161)(107,397)
Net cash provided by (used in) financing activities30,104 (107,702)
  
Effect of exchange rate changes on cash(8,717)(2,336)
  
Net change in cash and cash equivalents(62,104)(29,535)
Cash and cash equivalents at beginning of period211,106 260,232 
Cash and cash equivalents at end of period$149,002 $230,697 
 
The accompanying notes are an integral part of these financial statements.   

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NATIONAL INSTRUMENTS CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share data and per share data)
(unaudited)
Common Stock SharesCommon Stock AmountAdditional-Paid in CapitalRetained Earnings/(Deficit)Accumulated Other Comprehensive LossTotal Stockholders' Equity
Balance at June 30, 2022132,316,344 $1,323 $1,173,131 $21,533 $(27,480)$1,168,507 
Net income— — — 61,907 — 61,907 
Other comprehensive loss, net of tax— — — — (15,535)(15,535)
Issuance of common stock under employee plans285,330 3 7,582 — — 7,585 
Stock-based compensation— — 19,979 — — 19,979 
Repurchase of common stock(2,033,135)(20)(17,363)(64,447)— (81,830)
Dividends paid (1)— — — (37,128)— (37,128)
Balance at September 30, 2022130,568,539 1,306 1,183,329 (18,135)(43,015)1,123,485 
Common Stock SharesCommon Stock AmountAdditional-Paid in CapitalRetained Earnings/(Deficit)Accumulated Other Comprehensive LossTotal Stockholders' Equity
Balance at December 31, 2021132,293,898 1,323 1,129,647 112,858 (20,131)1,223,697 
Net income— — — 99,577 — 99,577 
Other comprehensive loss, net of tax— — — — (22,884)(22,884)
Issuance of common stock under employee plans2,066,704 21 25,423 — — 25,444 
Stock-based compensation— — 60,643 — — 60,643 
Repurchase of common stock(3,792,063)(38)(32,384)(119,409)— (151,831)
Dividends paid (1)— — — (111,161)— (111,161)
Balance at September 30, 2022130,568,539 $1,306 $1,183,329 $(18,135)$(43,015)$1,123,485 
(1) Cash dividends declared per share of common stock were $0.28 for the three months ended September 30, 2022, and $0.84 for the nine months ended September 30, 2022.
 
The accompanying notes are an integral part of these financial statements. 
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Common Stock SharesCommon Stock AmountAdditional-Paid in CapitalRetained Earnings/(Deficit)Accumulated Other Comprehensive LossTotal Stockholders' Equity
Balance at June 30, 2021132,980,932 $1,330 $1,087,622 $161,475 $(14,775)$1,235,652 
Net income— — — 27,177 — 27,177 
Other comprehensive loss, net of tax— — — — (2,401)(2,401)
Issuance of common stock under employee plans240,368 2 8,197 — — 8,199 
Stock-based compensation— — 18,814 — — 18,814 
Repurchase of common stock(599,066)(6)(4,715)(20,279)— (25,000)
Dividends paid (1)— — — (35,969)— (35,969)
Balance at September 30, 2021132,622,234 1,326 1,109,918 132,404 (17,176)1,226,472 
Common Stock SharesCommon Stock AmountAdditional-Paid in CapitalRetained Earnings/(Deficit)Accumulated Other Comprehensive LossTotal Stockholders' Equity
Balance at December 31, 2020131,246,615 1,312 1,033,284 211,101 (20,826)1,224,871 
Net income— — — 48,979 — 48,979 
Other comprehensive income, net of tax— — — — 3,650 3,650 
Issuance of common stock under employee plans1,974,685 20 25,418 — — 25,438 
Stock-based compensation— — 55,931 — — 55,931 
Repurchase of common stock(599,066)(6)(4,715)(20,279)— (25,000)
Dividends paid (1)— — — (107,397)— (107,397)
Balance at September 30, 2021132,622,234 $1,326 $1,109,918 $132,404 $(17,176)$1,226,472 
(1) Cash dividends declared per share of common stock were $0.27 for the three months ended September 30, 2021, and $0.81 for the nine months ended September 30, 2021.

The accompanying notes are an integral part of these financial statements.
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NATIONAL INSTRUMENTS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  
  
Note 1 – Basis of presentation  
  
The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 22, 2022 (the "Form 10-K"). In our opinion, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to state fairly our financial position at September 30, 2022 and December 31, 2021, the results of our operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021, our cash flows for the nine months ended September 30, 2022 and 2021 and our statement of stockholders' equity for the three and nine months ended September 30, 2022 and 2021. Our operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

Gain on Sale of Assets

During the three months ended September 30, 2022, we recognized a gain of $33.6 million from the sale of approximately 75-acres of land in Williamson County, Texas and two office buildings in Aachen, Germany. The buildings in Germany were previously used for certain research and development activities that have been relocated to other research and development locations. The disposal gain is presented as “Gain on sale of assets” in the Consolidated Statements of Income.

Recent Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-08—Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with ASC Topic 606 as if the acquirer had originated the contracts. We early adopted the standard on January 1, 2022. The adoption of this accounting standard update did not have a material effect on our consolidated financial statements and related disclosures.

In November 2021, the FASB issued Accounting Standards Update ("ASU") No. 2021-10- Government Assistance, to increase transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. ASU 2021-10 is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our annual financial statement disclosures.

In September 2022, the FASB issued ASU No. 2022-04-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in Update 2022-04 require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments in this Update do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our annual financial statement disclosures.

Although there are several other accounting pronouncements recently issued by the FASB, we do not expect the adoption of any of these accounting pronouncements to have material impact on our consolidated financial statements.

Summary of Significant Accounting Policies

There were no material changes to our significant accounting policies during the three and nine months ended September 30, 2022 compared to the significant accounting policies described in our Form 10-K.


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Other (Expense) Income

Other (expense) income, net consisted of the following amounts:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)(Unaudited)(Unaudited)
2022202120222021
Interest income$103 $56 $207 $330 
Interest expense(4,851)(657)(8,643)(2,584)
Gain (Loss) from equity-method investments353 278 483 (5,082)
Net foreign exchange loss(3,625)(1,226)(5,560)(2,681)
Other gain (loss)2,870 (271)4,891 166 
Other expense, net$(5,150)$(1,820)$(8,622)$(9,851)

Other Current Liabilities

Other current liabilities on our consolidated balance sheet includes the following amounts (in thousands):
As of September 30, 2022As of December 31,
(unaudited)2021
Income taxes payable - current$17,211 $14,457 
Hedge payable - current10,833 7,091 
Employer social security taxes - current— 5,785 
Other24,035 13,338 
Total$52,079 $40,671 

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes restricted stock units ("RSUs"), is computed using the treasury stock method. 

The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended September 30, 2022 and 2021 are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
(Unaudited)(Unaudited)
2022202120222021
Weighted average shares outstanding-basic132,044 133,031 132,040 132,657 
Plus: Common share equivalents    
RSUs537 655 961 1,172 
Weighted average shares outstanding-diluted132,581 133,686 133,001 133,829 

Shares issuable upon vesting of RSU awards of 1,048,000 shares and 143,000 shares for the three months ended September 30, 2022 and 2021, respectively, and 400,000 shares and 123,000 shares for the nine months ended September 30, 2022 and 2021, respectively, were excluded in the computations of diluted EPS because the effect of including the stock awards would have been anti-dilutive.



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Note 2 - Revenue

Revenue Recognition

Revenue is recognized upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of our products or services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.

Disaggregation of Revenues

We disaggregate revenue from contracts with customers based on the timing of transfer of goods or services to customers (point-in-time or over time), geographic region based on the billing location of the customer and customer industry grouping.

Total net sales based on the timing of transfer of goods or services to customers and geographic region are as follows:
Three Months Ended September 30,
(Unaudited)
20222021
(In thousands)
Net sales:
Point-in-Time(1)
Over TimeTotal
Point-in-Time(1)
Over TimeTotal
Americas$166,318 $26,643 $192,961 $125,069 $23,835 $148,904 
EMEA91,249 19,087 110,336 72,430 22,433 94,863 
APAC114,100 10,531 124,631 112,931 10,464 123,395 
Total net sales(1)
$371,667 $56,261 $427,928 $310,430 $56,732 $367,162 
(1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers.
See Note 5 - Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations.
Nine Months Ended September 30,
(Unaudited)
20222021
(In thousands)
Net sales:
Point-in-Time(1)
Over TimeTotal
Point-in-Time(1)
Over TimeTotal
Americas$432,402 $78,946 $511,348 $341,870 $68,436 $410,306 
EMEA247,687 60,807 308,494 204,786 64,769 269,555 
APAC357,088 31,769 388,857 337,455 31,724 369,179 
Total net sales(1)
$1,037,177 $171,522 $1,208,699 $884,111 $164,929 $1,049,040 
(1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers.
See Note 5 - Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations.

The industry grouping used to disaggregate net sales is determined at the customer account level. Accounts assigned to one of our three industry-specific groupings are either designated as Semiconductor and Electronics, Transportation, or Aerospace, Defense and Government. We are able to leverage the investments in these areas to also serve a broad base of diverse customers in the other industries we serve, which are included in our Portfolio grouping. Our recent acquisitions described in Note 16 are presented within the "Transportation" industry grouping below.

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Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)(Unaudited)
Industry Grouping2022202120222021
Semiconductor & Electronics101,678 93,892 320,920 292,114 
Transportation83,692 52,954 212,471 149,410 
Aerospace, Defense & Government104,641 92,646 297,569 256,211 
Portfolio137,917 127,670 377,739 351,305 
Total net sales$427,928 $367,162 $1,208,699 $1,049,040 

Information about Contract Balances

Amounts billed in advance of services being provided are typically accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to extended hardware and software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers, such as invoicing at the beginning of a subscription term with a portion of the revenue recognized ratably over the contract period, or to provide customers with financing, such as multi-year on-premises licenses that are invoiced annually with revenue recognized upfront.

Changes in deferred revenue, current and non-current, during the nine months ended September 30, 2022 were as follows:

(In thousands)Amount
Balance as of December 31, 2021$170,640 
Deferral of revenue billed in current period, net of recognition130,948 
Recognition of revenue deferred in prior periods(118,902)
Foreign currency translation impact(14,252)
Balance as of September 30, 2022 (unaudited)$168,434 

For the nine months ended September 30, 2022, revenue recognized from performance obligations satisfied in prior periods (for example, due to changes in transaction price) was not material. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in "Other current assets" on the consolidated balance sheet. Based on the nature of our contracts with customers, we do not typically recognize unbilled receivables related to revenues recognized in excess of amounts billed. For the nine months ended September 30, 2022 and December 31, 2021, the amounts recorded that were related to unbilled receivables were not material.

Unsatisfied Performance Obligations

Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less and contracts where revenue is recognized as invoiced, was approximately $94 million as of September 30, 2022. Because we typically invoice customers at contract inception, this amount is included in our current and non-current deferred revenue balances and primarily relates to multi-year payments for hardware service and software service offerings. As of September 30, 2022, we expect to recognize approximately 12% of the revenue related to these unsatisfied performance obligations during the remainder of 2022, 42% during 2023, and 46% thereafter.

Assets Recognized from the Costs to Obtain a Contract with a Customer

We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Capitalized incremental costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. Total capitalized costs to
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obtain a contract were not material during the periods presented and are included in other long-term assets on our consolidated balance sheets.

Note 3 – Investments

Equity-Method Investments

The carrying value of our equity method investments was $28 million and $32 million as of September 30, 2022 and December 31, 2021, respectively. During the three months ended September 30, 2022 and 2021, net sales to our equity-method investees were approximately $1.5 million and $0.9 million, respectively. During the nine months ended September 30, 2022 and 2021, net sales to our equity-method investees were approximately $4.3 million and $2.5 million, respectively. During the three and nine months ended September 30, 2022 and 2021, purchases from our equity-method investees were