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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 quarter ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 1-15579
 https://cdn.kscope.io/7301dbed2feaa07565ab25e9b86d1fb2-msa-20220331_g1.jpg
MSA SAFETY INCORPORATED
(Exact name of registrant as specified in its charter)
 
Pennsylvania 46-4914539
(State or other jurisdiction of
incorporation or organization)
 (IRS Employer
Identification No.)
1000 Cranberry Woods Drive
Cranberry Township,Pennsylvania 16066-5207
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (724776-8600
Former name or former address, if changed since last report: N/A
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 and (2) has been subject to such filing requirements for the past 90 days.    Yes  x   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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated FilerxAccelerated 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  x
Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading Symbol(s)Name of each exchange on which is registered
Common Stock, no par valueMSANew York Stock Exchange
As of April 22, 2022, 39,335,866 shares of common stock, of the registrant were outstanding.



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MSA SAFETY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
 Three Months Ended March 31,
(In thousands, except per share amounts)20222021
Net sales$330,692 $308,428 
Cost of products sold187,908 173,643 
Gross profit142,784 134,785 
Selling, general and administrative78,551 75,463 
Research and development13,333 13,234 
Restructuring charges (Note 3)2,189 1,308 
Currency exchange losses (gains), net3,271 (2,099)
Product liability expense (Note 18)2,772 2,796 
Operating income42,668 44,083 
Interest expense3,618 1,911 
Other income, net(6,344)(4,213)
Total other income, net(2,726)(2,302)
Income before income taxes45,394 46,385 
Provision for income taxes (Note 10)9,852 9,749 
Net income35,542 36,636 
Net income attributable to noncontrolling interests (186)
Net income attributable to MSA Safety Incorporated$35,542 $36,450 
Earnings per share attributable to MSA Safety Incorporated common shareholders (Note 9):
       Basic$0.90 $0.93 
Diluted$0.90 $0.92 
Dividends per common share$0.44 $0.43 
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
-2-


MSA SAFETY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited
 Three Months Ended March 31,
(In thousands)20222021
Net income$35,542 $36,636 
Other comprehensive income (loss), net of tax:
     Foreign currency translation adjustments (Note 6)5,892 (10,223)
     Pension and post-retirement plan actuarial gains, net of tax (Note 6)2,264 3,712 
Unrealized losses on available-for-sale securities (Note 6)(9)(5)
Total other comprehensive income (loss), net of tax8,147 (6,516)
Comprehensive income 43,689 30,120 
Less: Comprehensive income attributable to noncontrolling interests (221)
Comprehensive income attributable to MSA Safety Incorporated$43,689 $29,899 
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
-3-


MSA SAFETY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited 
(In thousands)March 31, 2022December 31, 2021
Assets
Cash and cash equivalents$147,300 $140,895 
Trade receivables, less allowance for credit loss of $6,171 and $5,789
244,005 254,187 
Inventories (Note 4)321,602 280,617 
Investments, short-term (Note 17)39,971 48,974 
Prepaid income taxes24,485 21,235 
Notes receivable, insurance companies (Note 18)3,943 3,914 
Prepaid expenses and other current assets 44,848 42,982 
Total current assets
826,154 792,804 
Property, plant and equipment, net (Note 5)205,995 207,793 
Operating lease right-of-use assets, net49,887 50,178 
Prepaid pension cost (Note 15)169,842 163,283 
Deferred tax assets (Note 10)34,796 35,257 
Goodwill (Note 13)631,821 636,858 
Intangible assets, net (Note 13)299,725 306,948 
Notes receivable, insurance companies, noncurrent (Note 18)44,893 44,626 
Insurance receivables (Note 18) and other noncurrent assets152,664 158,649 
Total assets
$2,415,777 $2,396,396 
Liabilities
Notes payable and current portion of long-term debt (Note 12)$8,021 $ 
Accounts payable108,407 106,780 
Employees’ compensation34,080 49,884 
Insurance and product liability (Note 18)57,037 55,125 
Income taxes payable (Note 10)14,361 5,366 
Accrued restructuring and other current liabilities112,031 113,451 
Total current liabilities
333,937 330,606 
Long-term debt, net (Note 12)591,393 597,651 
Pensions (Note 15) and other employee benefits187,818 189,973 
Noncurrent operating lease liabilities40,219 40,706 
Deferred tax liabilities (Note 10)33,049 33,337 
Product liability (Note 18) and other noncurrent liabilities368,454 369,735 
Total liabilities
$1,554,870 $1,562,008 
Equity
Preferred stock, 4.5% cumulative, $50 par value (Note 7)
$3,569 $3,569 
Common stock, no par value (Note 7)
262,627 260,121 
Treasury shares, at cost (Note 7)(332,760)(330,376)
Accumulated other comprehensive loss (Note 6)(140,993)(149,140)
Retained earnings1,068,464 1,050,214 
Total shareholders’ equity
860,907 834,388 
Total liabilities and shareholders’ equity
$2,415,777 $2,396,396 
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
-4-


MSA SAFETY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
 Three Months Ended March 31,
(In thousands)20222021
Operating Activities
Net income$35,542 $36,636 
Depreciation and amortization14,165 10,504 
Stock-based compensation (Note 11)3,730 3,293 
Pension expense (Note 15)(2,652)(480)
Deferred income tax benefit (Note 10)(572)(586)
Loss on asset dispositions, net4 19 
Pension contributions (Note 15)(1,914)(1,923)
Currency exchange losses (gains), net3,271 (2,099)
Product liability expense (Note 18)2,772 2,796 
Collections on insurance receivables and notes receivable,
insurance companies (Note 18)
3,865 1,765 
Product liability payments (Note 18)(1,758)(7,471)
Changes in:
     Trade receivables13,365 27,784 
     Inventories (Note 4)(40,816)(10,826)
Accounts payable1,408 532 
Other current assets and liabilities(6,858)(13,966)
     Other noncurrent assets and liabilities971 (362)
Cash Flow From Operating Activities24,523 45,616 
Investing Activities
Capital expenditures(7,976)(9,582)
Acquisition, net of cash acquired (Note 14) (62,992)
Purchase of short-term investments (Note 17)(19,973)(44,970)
Proceeds from maturities of short-term investments (Note 17)29,000 65,000 
Property disposals and other investing 35 
Cash Flow From (Used in) Investing Activities1,051 (52,509)
Financing Activities
Proceeds from long-term debt (Note 12)263,000 370,017 
Payments on long-term debt (Note 12)(258,000)(318,000)
Cash dividends paid(17,292)(16,820)
Company stock purchases (Note 7)(3,659)(5,348)
Exercise of stock options (Note 7)51 1,790 
Cash Flow (Used In) From Financing Activities(15,900)31,639 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(3,361)(720)
Increase in cash, cash equivalents and restricted cash6,313 24,026 
Beginning cash, cash equivalents and restricted cash141,438 161,034 
Ending cash, cash equivalents and restricted cash$147,751 $185,060 
Supplemental cash flow information:
Cash and cash equivalents$147,300 $184,728 
Restricted cash included in prepaid expenses and other current assets451 332 
Total cash, cash equivalents and restricted cash$147,751 $185,060 
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
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MSA SAFETY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN RETAINED EARNINGS,
ACCUMULATED OTHER COMPREHENSIVE LOSS AND NONCONTROLLING INTERESTS
Unaudited
(In thousands)Retained
Earnings
Accumulated
Other
Comprehensive
(Loss)
Noncontrolling Interests
Balances December 31, 2020$1,103,092 $(182,397)$7,993 
Net income36,636 — — 
Foreign currency translation adjustments— (10,223)— 
Pension and post-retirement plan adjustments, net of tax of $1,084
— 3,712 — 
Unrecognized net losses on available-for-sale securities (Note 17)— (5)— 
Income attributable to noncontrolling interests(186)(35)221 
Common dividends(16,810)— — 
Preferred dividends ($0.5625 per share)
(10)— — 
Balances March 31, 2021$1,122,722 $(188,948)$8,214 
Balances December 31, 2021$1,050,214 $(149,140)$ 
Net income35,542 — — 
Foreign currency translation adjustments— 5,892 — 
Pension and post-retirement plan adjustments, net of tax of $1,016
— 2,264 — 
Unrecognized net losses on available-for-sale securities (Note 17)— (9)— 
Common dividends(17,282)— — 
Preferred dividends ($0.5625 per share)
(10)— — 
Balances March 31, 2022$1,068,464 $(140,993)$ 
*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
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MSA SAFETY INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
Note 1—Basis of Presentation
The condensed consolidated financial statements of MSA Safety Incorporated and its subsidiaries ("MSA" or "the Company") are unaudited. These unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2021, Balance Sheets data was derived from the audited Consolidated Balance Sheets, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("U.S. GAAP"). This Form 10-Q report should be read in conjunction with MSA's Form 10-K for the year ended December 31, 2021, which includes all disclosures required by U.S. GAAP.
During the fourth quarter of 2021, the Company changed its method of accounting for certain inventory in the United States from the last-in, first-out ("LIFO") method to the first-in, first-out ("FIFO") method. The FIFO method of accounting for inventory is preferable because it conforms the Company's entire inventory to a single method of accounting and improves comparability with the Company's peers. The effects of the change in accounting method from LIFO to FIFO have been retrospectively applied to all periods presented in all sections of this Quarterly Report. Refer to Note 4—Inventory of the consolidated financial statements in Part II Item 8 of our 2021 Form 10-K for further information related to the change in accounting principle.
Note 2—Cash and Cash Equivalents
Several of the Company's affiliates participate in a notional cash pooling arrangement to manage global liquidity requirements. As part of a master netting arrangement, the participants combine their cash balances in pooling accounts at the same financial institution with the ability to offset bank overdrafts of one participant against positive cash account balances held by another participant. Under the terms of the master netting arrangement, the financial institution has the right, ability and intent to offset a positive balance in one account against an overdrawn amount in another account. Amounts in each of the accounts are unencumbered and unrestricted with respect to use. As such, the net cash balance related to this pooling arrangement is included in Cash and cash equivalents in the unaudited Condensed Consolidated Balance Sheets.
The Company's net cash pool position consisted of the following:
(In thousands)March 31, 2022
Gross cash pool position$64,304 
Less: cash pool borrowings(62,039)
Net cash pool position2,265 
Note 3—Restructuring Charges

During the three months ended March 31, 2022, we recorded restructuring charges of $2.2 million. International segment restructuring charges of $2.0 million during the three months ended March 31, 2022, were primarily related to the expansion of our European Shared Service Center in Warsaw, Poland. Americas segment restructuring charges of $0.4 million during the three months ended March 31, 2022, were primarily related to programs to adjust our operations in response to current business conditions.
During the three months ended March 31, 2021, we recorded restructuring charges of $1.3 million. International segment restructuring charges of $1.0 million during the three months ended March 31, 2021, were primarily related to our ongoing initiatives to drive profitable growth and right size our operations. Americas segment restructuring charges of $0.2 million during the three months ended March 31, 2021, were primarily related to costs associated with our global Fixed Gas & Flame Detection manufacturing footprint optimization as well as programs to adjust our operations in response to current business conditions.
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Activity and reserve balances for restructuring charges by segment were as follows:
(In millions)AmericasInternationalCorporateTotal
Reserve balances at December 31, 2020$2.8 $19.3 $0.4 $22.5 
Restructuring charges4.6 11.2 0.6 16.4 
Currency translation(0.1)(0.2) (0.3)
Cash payments / utilization (4.0)(12.9)(0.7)(17.6)
Reserve balances at December 31, 2021$3.3 $17.4 $0.3 $21.0 
Restructuring charges (releases)0.4 2.0 (0.2)2.2 
Currency translation (0.2) (0.2)
Cash payments(1.1)(2.1) (3.2)
Reserve balances at March 31, 2022$2.6 $17.1 $0.1 $19.8 
Restructuring reserves are included in Accrued restructuring and other current liabilities in the accompanying unaudited Condensed Consolidated Balance Sheets.
Note 4—Inventories
The following table sets forth the components of inventory:
(In thousands)March 31, 2022December 31, 2021
Finished products$97,004 $87,657 
Work in process15,562 6,534 
Raw materials and supplies209,036 186,426 
Total inventories$321,602 $280,617 
Note 5—Property, Plant and Equipment
The following table sets forth the components of property, plant and equipment, net:
(In thousands)March 31, 2022December 31, 2021
Land$5,070 $5,131 
Buildings138,610 136,272 
Machinery and equipment445,746 435,652 
Construction in progress29,025 36,552 
Total618,451 613,607 
Less: accumulated depreciation(412,456)(405,814)
Property, plant and equipment, net$205,995 $207,793 

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Note 6—Reclassifications Out of Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss were as follows:
MSA Safety IncorporatedNoncontrolling Interests
Three Months Ended  
March 31,
Three Months Ended  
March 31,
(In thousands)2022202120222021
Pension and other post-retirement benefits (a)
Balance at beginning of period$(57,296)$(115,552)$ $ 
Amounts reclassified from accumulated other comprehensive loss into net income:
Amortization of prior service credit (Note 15)(48)(24)  
Recognized net actuarial losses (Note 15)3,328 4,820   
Tax benefit(1,016)(1,084)  
Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income2,264 3,712   
Balance at end of period$(55,032)$(111,840)$ $ 
Available-for-sale securities
Balance at beginning of period$(5)$(1)$ $ 
Unrealized loss on available-for-sale securities (Note 17)(9)(5)  
Balance at end of period$(14)$(6)$ $ 
Foreign currency translation
Balance at beginning of period$(91,839)$(66,844)$ $582 
Foreign currency translation adjustments5,892 (10,258) 35 
Balance at end of period$(85,947)$(77,102)$ $617 
(a) Reclassifications out of accumulated other comprehensive loss and into net income are included in the computation of net periodic pension and other post-retirement benefit costs (refer to Note 15—Pensions and Other Post-retirement Benefits).
Note 7—Capital Stock
Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50. There are 71,340 shares issued and 52,998 shares held in treasury at March 31, 2022. The Treasury shares at cost line in the unaudited Condensed Consolidated Balance Sheets includes $1.8 million related to preferred stock. There were no treasury purchases of preferred stock shares during both the three months ended March 31, 2022 and 2021. The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of March 31, 2022.
Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 62,081,391 shares issued as of December 31, 2021. No new shares were issued during the three months ended March 31, 2022, or 2021. There were 39,335,816 and 39,276,518 shares outstanding at March 31, 2022 and December 31, 2021, respectively.
Treasury Shares - The Company's share repurchase program authorizes up to $100.0 million to repurchase MSA common stock in the open market and in private transactions. The share repurchase program has no expiration date. The maximum number of shares that may be repurchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. During the three months ended March 31, 2022 and 2021, no shares were repurchased under this program. There were 22,745,575 and 22,804,873 Treasury Shares at March 31, 2022 and December 31, 2021, respectively.
The Company issues Treasury Shares for all stock-based compensation plans. Shares are issued from Treasury at the average Treasury Share cost on the date of the transaction. There were 28,366 and 32,650 Treasury Shares issued for these purposes during the three months ended March 31, 2022 and 2021, respectively.


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Common stock activity is summarized as follows:
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
(In thousands)Common
Stock
Treasury
Cost
Common
Stock
Treasury
Cost
Balance at beginning of period$260,121 $(328,776)$242,693 $(326,156)
Stock compensation expense3,730  3,293  
Restricted and performance stock awards(1,260)1,260 (1,333)1,333 
Stock options exercised36 15 1,234 556 
Treasury shares purchased (3,659) (5,348)
Balance at end of period$262,627 $(331,160)$245,887 $(329,615)
Note 8—Segment Information
We are organized into four geographical operating segments that are based on management responsibilities: Northern North America, Latin America, Europe, Middle East & Africa ("EMEA"), and Asia Pacific ("APAC"). The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate.
The Americas segment is comprised of our operations in Northern North American and Latin American geographies. The International segment is comprised of our operations of all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived.
The Company's sales are allocated to each country based primarily on the destination of the end-customer.
Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income excluding restructuring charges, currency exchange gains (losses), product liability expense, acquisition related costs, including acquisition related amortization and adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment sales to external customers. Adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under U.S. GAAP, and therefore, do not purport to be alternatives to operating income or operating margin as a measure of operating performance. Further, the Company's measure of adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) and adjusted EBITDA on a consolidated basis is presented in the following table to reconcile the segment operating performance measures to the most directly comparable GAAP measure, operating income, as presented on the unaudited Condensed Consolidated Statements of Income.
The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the unaudited condensed consolidated financial statements level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation.
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Reportable segment information is presented in the following table:
(In thousands, except percentage amounts)AmericasInternationalCorporateConsolidated
Totals
Three Months Ended March 31, 2022
Sales to external customers$225,648 $105,044 $ $330,692 
Operating income42,668 
Restructuring charges (Note 3)2,189 
Currency exchange losses, net3,271 
Product liability expense (Note 18)2,772 
Acquisition related costs(a) (Note 14)
2,943 
Adjusted operating income (loss)52,435 9,024 (7,616)53,843 
Adjusted operating margin %23.2 %8.6 %
Depreciation and amortization11,829 
Adjusted EBITDA60,796 12,362 (7,486)65,672 
Adjusted EBITDA margin %26.9 %11.8 %
(In thousands, except percentage amounts)AmericasInternationalCorporateConsolidated
Totals
Three Months Ended March 31, 2021
Sales to external customers$208,340 $100,088 $ $308,428 
Operating income44,083 
Restructuring charges (Note 3)1,308 
Currency exchange gains, net (2,099)
Product liability expense (Note 18)2,796 
Acquisition related costs(a)
1,373 
Adjusted operating income (loss)45,195 8,792 (6,526)47,461 
Adjusted operating margin %21.7 %8.8 %
Depreciation and amortization10,504 
Adjusted EBITDA52,229 12,165 (6,429)57,965 
Adjusted EBITDA margin %25.1 %12.2 %
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. Adjustments were made to Americas and International.
(a)Acquisition related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during due diligence and integration. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income. Acquisition related costs also include the acquisition related amortization, which is included in Cost of products sold in the unaudited Condensed Consolidated Statements of Income.
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Total sales by product group was as follows:
Three Months Ended March 31, 2022ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Fixed Gas & Flame Detection (a)
$83,077 25%$54,621 24%$28,456 27%
Breathing Apparatus70,951 22%50,398 22%20,553 20%
Firefighter Helmets & Protective Apparel48,461 15%33,476 15%14,985 14%
Portable Gas Detection36,744 11%25,791 11%10,953 10%
Industrial Head Protection36,157 11%28,165 13%7,992 8%
Fall Protection24,662 7%16,277 7%8,385 8%
Other (b)
30,640 9%16,920 8%13,720 13%
Total$330,692 100%$225,648 100%$105,044 100%
Three Months Ended March 31, 2021ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Breathing Apparatus$69,644 23%$48,798 23%$20,846 21%
Fixed Gas & Flame Detection60,119 19%36,277 17%23,842 24%
Firefighter Helmets & Protective Apparel46,010 15%34,988 17%11,022 11%
Portable Gas Detection37,429 12%25,702 12%11,727 12%
Industrial Head Protection32,696 11%25,111 12%7,585 8%
Fall Protection26,067 8%15,672 8%10,395 10%
Other (b)
36,463 12%21,792 11%14,671 14%
Total$308,428 100%$208,340 100%$100,088 100%
(a)Fixed Gas & Flame Detection includes sales from the Bacharach, Inc. and its affiliated companies ("Bacharach") acquisition for periods following July 1, 2021 (Americas and International). Please refer to Note 14 - Acquisitions.
(b)Other products include sales of Air Purifying Respirators.
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Note 9—Earnings per Share
Basic earnings per share attributable to MSA Safety Incorporated common shareholders is computed by dividing net income, after the deduction of preferred stock dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MSA Safety Incorporated common shareholders assumes the issuance of common stock for all potentially dilutive share equivalents outstanding not classified as participating securities. Participating securities are defined as unvested stock-based compensation awards that contain nonforfeitable rights to dividends.
Amounts attributable to MSA Safety Incorporated common shareholders:Three Months Ended March 31,
(In thousands, except per share amounts)20222021
Net income$35,542 $36,450 
Preferred stock dividends(10)(10)
Net income available to common equity35,532 36,440 
Dividends and undistributed earnings allocated to participating securities(4)(14)
Net income available to common shareholders35,528 36,426 
Basic weighted-average shares outstanding39,291 39,094 
Stock-based compensation awards232 326 
Diluted weighted-average shares outstanding39,523 39,420 
Antidilutive stock options  
Earnings per share:
Basic$0.90 $0.93 
Diluted$0.90 $0.92 
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
Note 10—Income Taxes
The Company's effective tax rate for the first quarter of 2022 was 21.7% which differs from the United States of America ("U.S.") federal statutory rate of 21% primarily due to state income taxes, partially offset by tax benefits on certain share-based payments. The Company's effective tax rate for the first quarter of 2021 was 21.0%, which is consistent with the U.S. statutory rate of 21% as state income taxes and a one time foreign expense associated with pension was offset by tax benefits on certain share-based payments.
On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of 2021. This bill will increase the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its deferred tax balances in the second quarter of 2021.
At March 31, 2022, the Company had a gross liability for unrecognized tax benefits of $5.0 million. The Company has recognized tax benefits associated with these liabilities of $2.5 million at March 31, 2022. The gross liability includes amounts associated with foreign tax exposure in prior periods.
The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's liability for accrued interest related to uncertain tax positions was $0.9 million at March 31, 2022.
We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our unaudited condensed consolidated financial statements.

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Note 11—Stock Plans
The 2016 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible key employees through May 2026. Management stock-based compensation includes stock options, restricted stock awards, restricted stock units and performance stock units. The 2017 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2027. We issue treasury shares for stock option exercises and grants of restricted stock and performance stock. Please refer to Note 7—Capital Stock for further information regarding stock compensation share issuance.
Stock compensation expense is as follows:
 Three Months Ended March 31,
(In thousands)20222021
Stock compensation expense$3,730 $3,293 
Income tax expense914 794 
Stock compensation expense, net of tax$2,816 $2,499 
A summary of stock option activity for the three months ended March 31, 2022, follows:
SharesWeighted Average
Exercise Price
Outstanding at January 1, 2022161,701 $45.47 
Exercised(1,056)48.95 
Outstanding at March 31, 2022160,645 45.45 
Exercisable at March 31, 2022160,461 $45.44 
Restricted stock awards and restricted stock units are valued at the market value of the stock on the grant date. A summary of restricted stock activity for the three months ended March 31, 2022, follows:
SharesWeighted Average
Grant Date Fair Value
Unvested at January 1, 2022118,343 $132.62 
Granted44,153