Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 27, 2020shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 27, 2020 |
Document Transition Report | false |
Entity File Number | 001-15885 |
Entity Registrant Name | MATERION CORPORATION |
Local Phone Number | 486-4200 |
Title of 12(b) Security | Common Stock, no par value |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-1919973 |
Entity Address, Address Line One | 6070 Parkland Blvd |
Entity Address, City or Town | Mayfield Heights |
Entity Address, State or Province | OH |
City Area Code | 216 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Address, Postal Zip Code | 44124 |
Entity Central Index Key | 0001104657 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | MTRN |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 20,309,846 |
Security Exchange Name | NYSE |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 277,946 | $ 301,441 |
Cost of sales | 232,371 | 232,129 |
Gross margin | 45,575 | 69,312 |
Selling, general, and administrative expense | 30,744 | 40,064 |
Research and development expense | 4,185 | 3,740 |
Goodwill impairment charges | 9,053 | 0 |
Held-for-sale impairment charges | 1,713 | 0 |
Restructuring charges | 2,164 | 0 |
Other - net | 2,279 | 4,121 |
Operating (loss) profit | (4,563) | 21,387 |
Other non-operating (income) expense - net | (944) | 245 |
Interest expense—net | 246 | 466 |
(Loss) Income before income taxes | (3,865) | 20,676 |
Income tax (benefit) expense | (762) | 3,770 |
Net (loss) income | $ (3,103) | $ 16,906 |
Basic earnings per share: | ||
Net (loss) income per share of common stock (in dollars per share) | $ (0.15) | $ 0.83 |
Diluted earnings per share: | ||
Net (loss) income per share of common stock (in dollars per share) | $ (0.15) | $ 0.82 |
Weighted-average number of shares of common stock outstanding: | ||
Basic (in shares) | 20,384 | 20,267 |
Diluted (in shares) | 20,384 | 20,606 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (3,103) | $ 16,906 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (873) | (503) |
Derivative and hedging activity, net of tax | (854) | 927 |
Pension and post-employment benefit adjustment, net of tax | 16 | 540 |
Net current period other comprehensive (loss) income after tax | (1,711) | 964 |
Comprehensive (loss) income | $ (4,814) | $ 17,870 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 107,576 | $ 125,007 |
Accounts receivable | 138,803 | 154,751 |
Inventories, net | 204,702 | 190,390 |
Prepaid and other current assets | 20,515 | 21,839 |
Assets held for sale | 7,188 | 0 |
Total current assets | 478,784 | 491,987 |
Deferred income taxes | 1,648 | 1,666 |
Property, Plant and Equipment | 910,050 | 916,965 |
Less allowances for depreciation, depletion, and amortization | (675,074) | (684,689) |
Property, plant, and equipment—net | 234,976 | 232,276 |
Operating lease, right-of-use asset | 36,465 | 23,413 |
Intangible assets | 5,972 | 6,380 |
Other assets | 18,399 | 17,937 |
Goodwill | 69,832 | 79,011 |
Total Assets | 846,076 | 852,670 |
Current liabilities | ||
Short-term debt | 877 | 868 |
Accounts payable | 54,145 | 43,206 |
Salaries and wages | 18,820 | 41,167 |
Other liabilities and accrued items | 32,920 | 32,477 |
Income taxes | 1,387 | 1,342 |
Unearned revenue | 2,317 | 3,380 |
Liabilities held for sale | 3,204 | 0 |
Total current liabilities | 113,670 | 122,440 |
Other long-term liabilities | 10,575 | 11,560 |
Operating lease liabilities | 32,374 | 18,091 |
Finance lease liabilities | 16,652 | 17,424 |
Retirement and post-employment benefits | 31,444 | 32,466 |
Unearned income | 39,091 | 32,891 |
Long-term income taxes | 3,480 | 3,451 |
Deferred income taxes | 1,186 | 2,410 |
Long-term debt | 1,126 | 1,260 |
Serial preferred stock (no par value; 5,000 authorized shares, none issued) | 0 | 0 |
Common stock (no par value; 60,000 authorized shares, issued shares of 27,148 at March 27 and December 31) | 253,967 | 249,674 |
Retained earnings | 584,505 | 589,888 |
Common stock in treasury | (198,311) | (186,845) |
Accumulated other comprehensive loss | (47,173) | (45,462) |
Other equity | 3,490 | 3,422 |
Total shareholders' equity | 596,478 | 610,677 |
Total Liabilities and Shareholders’ Equity | $ 846,076 | $ 852,670 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands, $ / shares in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Serial preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Serial preferred stock, shares authorized | 5,000 | 5,000 |
Serial preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 60,000 | 60,000 |
Common stock, shares, issued | 27,148 | 27,148 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (3,103) | $ 16,906 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, depletion, and amortization | 14,274 | 9,067 |
Amortization of deferred financing costs in interest expense | 182 | 236 |
Stock-based compensation expense (non-cash) | 1,492 | 1,547 |
Deferred income tax expense (benefit) | (1,227) | 371 |
Held-for-sale impairment charges | 10,766 | 0 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 11,049 | (14,698) |
Decrease (increase) in inventory | (16,723) | (9,561) |
Decrease (increase) in prepaid and other current assets | 1,127 | (556) |
Increase (decrease) in accounts payable and accrued expenses | (13,002) | (16,030) |
Increase (decrease) in unearned revenue | (938) | (724) |
Increase (decrease) in interest and taxes payable | 368 | 2,525 |
Domestic pension plan contributions | 0 | (1,500) |
Other-net | 4,865 | (200) |
Net cash used in operating activities | 9,130 | (12,617) |
Cash flows from investing activities: | ||
Payments for purchase of property, plant, and equipment | (14,789) | (8,027) |
Payments for mine development | 0 | 1,352 |
Proceeds from sale of property, plant, and equipment | 10 | 58 |
Net cash used in investing activities | (14,779) | (9,321) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (142) | (197) |
Principal payments under finance lease obligations | 233 | 298 |
Cash dividends paid | (2,245) | (2,125) |
Repurchase of common stock | (6,766) | (199) |
Payments of withholding taxes for stock-based compensation awards | (2,015) | (3,978) |
Net cash used in financing activities | (11,401) | (6,797) |
Effects of exchange rate changes | (381) | (46) |
Net change in cash and cash equivalents | (17,431) | (28,781) |
Cash and cash equivalents at beginning of period | 125,007 | 70,645 |
Cash and cash equivalents at end of period | $ 107,576 | $ 41,864 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Common Shares Held In Treasury | Common Stock | Retained Earnings | Common Stock In Treasury | Accumulated Other Comprehensive Income (Loss) | Other Equity |
Beginning balance (in shares) at Dec. 31, 2018 | 20,242 | |||||||
Beginning balances (in Treasury shares) at Dec. 31, 2018 | (6,906) | |||||||
Beginning balances at Dec. 31, 2018 | $ 553,906 | $ 234,704 | $ 548,374 | $ (175,426) | $ (58,234) | $ 4,488 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 16,906 | 0 | 16,906 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | 964 | 0 | 0 | 0 | 964 | 0 | ||
Cumulative effect of accounting change | (179) | 0 | (179) | 0 | 0 | 0 | ||
Cash dividends declared | (2,125) | 0 | (2,125) | 0 | 0 | 0 | ||
Stock-based compensation activity (in shares) | 192 | 192 | ||||||
Stock-based compensation activity | 1,547 | 6,759 | (35) | (5,177) | 0 | 0 | ||
Payments of withholding taxes for stock-based compensation awards (in shares) | (75) | (75) | ||||||
Payments of withholding taxes for stock-based compensation awards | (3,978) | 0 | 0 | (3,978) | 0 | 0 | ||
Repurchase of shares (in shares) | 5 | 5 | ||||||
Repurchase of shares | (199) | 0 | 0 | (199) | 0 | 0 | ||
Directors' deferred compensation | 35 | $ 0 | $ 0 | 17 | 0 | (32) | 0 | 50 |
Ending balance (in shares) at Mar. 29, 2019 | 20,354 | |||||||
Ending balances (in Treasury shares) at Mar. 29, 2019 | (6,794) | |||||||
Ending balances at Mar. 29, 2019 | 566,877 | 241,480 | 562,941 | (184,812) | (57,270) | 4,538 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 20,404 | |||||||
Beginning balances (in Treasury shares) at Dec. 31, 2019 | (6,744) | |||||||
Beginning balances at Dec. 31, 2019 | 610,677 | 249,674 | 589,888 | (186,845) | (45,462) | 3,422 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (3,103) | 0 | (3,103) | 0 | 0 | 0 | ||
Other comprehensive income (loss) | (1,711) | 0 | 0 | 0 | (1,711) | 0 | ||
Cash dividends declared | (2,245) | 0 | (2,245) | 0 | 0 | 0 | ||
Stock-based compensation activity (in shares) | 99 | 99 | ||||||
Stock-based compensation activity | 1,584 | 4,262 | (35) | (2,643) | 0 | 0 | ||
Payments of withholding taxes for stock-based compensation awards (in shares) | (36) | (36) | ||||||
Payments of withholding taxes for stock-based compensation awards | (2,015) | 0 | 0 | (2,015) | 0 | 0 | ||
Repurchase of shares (in shares) | 158 | 158 | ||||||
Repurchase of shares | (6,766) | 0 | 0 | (6,766) | 0 | 0 | ||
Directors' deferred compensation | 57 | $ 1 | $ 1 | 31 | 0 | (42) | 0 | 68 |
Ending balance (in shares) at Mar. 27, 2020 | 20,310 | |||||||
Ending balances (in Treasury shares) at Mar. 27, 2020 | (6,838) | |||||||
Ending balances at Mar. 27, 2020 | $ 596,478 | $ 253,967 | $ 584,505 | $ (198,311) | $ (47,173) | $ 3,490 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (per share) | $ 0.110 | $ 0.105 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 27, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior periods have been reclassified to conform to the 2020 consolidated financial statement presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2019 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. New Pronouncements Adopted: In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses . This ASU requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. The Company adopted this guidance as of January 1, 2020, and the adoption did not have a material effect on the Company’s consolidated financial statements. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has the following reportable segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Company’s reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance. Performance Alloys and Composites produces strip and bulk form alloy products, strip metal products with clad inlay and overlay metals, beryllium-based metals, beryllium, and aluminum metal matrix composites, in rod, sheet, foil, and a variety of customized forms, beryllia ceramics, and bulk metallic glass materials. Advanced Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, and ultra-fine wire. Precision Coatings produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials. The Other reportable segment includes unallocated corporate costs and assets. (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total First Quarter 2020 Net sales $ 99,067 $ 160,165 $ 18,714 $ — $ 277,946 Intersegment sales 215 9,191 — — 9,406 Operating profit (loss) 4,791 4,785 (9,592 ) (4,547 ) (4,563 ) First Quarter 2019 Net sales $ 127,113 $ 144,025 $ 30,303 $ — $ 301,441 Intersegment sales 9 17,213 — — 17,222 Operating profit (loss) 18,958 7,080 2,077 (6,728 ) 21,387 The following table disaggregates revenue for each segment by end market for the first quarter of 2020 and 2019: (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total First Quarter 2020 End Market Semiconductor $ 906 $ 120,819 $ 11 $ — $ 121,736 Industrial 23,340 8,362 3,097 — 34,799 Aerospace and Defense 14,206 1,426 5,109 — 20,741 Consumer Electronics 14,695 118 3,541 — 18,354 Automotive 18,163 2,080 17 — 20,260 Energy 5,429 23,468 — — 28,897 Telecom and Data Center 9,989 871 — — 10,860 Other 12,339 3,021 6,939 — 22,299 Total $ 99,067 $ 160,165 $ 18,714 $ — $ 277,946 First Quarter 2019 End Market Semiconductor $ 1,965 $ 105,090 $ 112 $ — $ 107,167 Industrial 26,430 7,928 4,150 — 38,508 Aerospace and Defense 27,074 1,493 4,871 — 33,438 Consumer Electronics 13,555 205 3,486 — 17,246 Automotive 20,713 1,353 221 — 22,287 Energy 11,094 22,197 — — 33,291 Telecom and Data Center 17,592 202 — — 17,794 Other 8,690 5,557 17,463 — 31,710 Total $ 127,113 $ 144,025 $ 30,303 $ — $ 301,441 Intersegment sales are eliminated in consolidation. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue, in an amount that reflects the consideration to which it expects to be entitled, upon satisfaction of a performance obligation, by transferring control over a product to the customer. Control over the product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product. Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at March 27, 2020. Remaining performance obligations include non-cancelable purchase orders and customer contracts. The guidance provides certain practical expedients that limit this requirement. As such, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. After considering the practical expedient at March 27, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $37.0 million . Contract Balances : The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities: (Thousands) March 27, 2020 December 31, 2019 $ change % change Accounts receivable, trade $ 129,139 $ 141,168 $ (12,029 ) (9 )% Unbilled receivables 9,265 13,583 (4,318 ) (32 )% Unearned revenue 2,317 3,380 (1,063 ) (31 )% Accounts receivable, trade represents payments due from customers relating to the transfer of the Company’s products and services. The Company believes that its receivables are collectible and appropriate allowances for doubtful accounts have been recorded. Impairment losses (bad debt) incurred relating to our receivables were immaterial during the first quarter of 2020. Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are normally billed and collected within one year. Billings made on contracts are recorded as a reduction of unbilled receivables. Unearned revenue is recorded for consideration received from customers in advance of satisfaction of the related performance obligations. The Company recognized approximately $2.1 million of the unearned amounts as revenue during the first quarter of 2020. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component because the period between the transfer of a product or service to a customer and when the customer pays for that product or service will be one year or less. The Company does not include extended payment terms in its contracts with customers. |
Other-net
Other-net | 3 Months Ended |
Mar. 27, 2020 | |
Other Income and Expenses [Abstract] | |
Other-net | Other-net Other-net for the first quarter of 2020 and 2019 is summarized as follows: First Quarter Ended March 27, March 29, (Thousands) 2020 2019 Metal consignment fees $ 2,229 $ 3,091 Amortization of intangible assets 188 390 Foreign currency (gain) loss (62 ) 77 Net loss on disposal of fixed assets 46 24 Other items (122 ) 539 Total $ 2,279 $ 4,121 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring In the first quarter of 2020, the Company initiated a restructuring plan in its Performance Alloys and Composites (PAC) segment to close its Warren, Michigan and Fremont, California locations. Costs associated with the plan totaled $2.2 million in the first quarter of 2020 and included $0.5 million of severance associated with approximately 63 employees, $1.3 million of facility and other related costs. Remaining severance payments of $0.5 million and facility costs of $1.3 million related to these initiatives are reflected within Other liabilities and accrued items in the Consolidated Balance Sheets. The Company expects to incur additional costs related to these initiatives of approximately $6 million in the remainder of 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the first quarter of 2020 and 2019 was 19.7% and 18.2% , respectively. The effective tax rate for each period is lower than the statutory tax rate primarily due to the impact of percentage depletion and the research and development credit. The effective tax rate for the first quarter of 2020 included discrete income tax expense of $0.2 million , primarily related to $0.7 million of tax expense from an impairment of goodwill and $0.4 million of tax benefit related to excess tax benefits from stock-based compensation awards. The effective tax rate for the first quarter of 2019 included a discrete income tax benefit of $0.9 million , primarily related to excess tax benefits from stock-based compensation awards. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, and modifications to the net interest deduction limitations. While the Company continues to examine the impacts the CARES Act may have on its business, it does not expect it will have a material impact to its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (EPS) The following table sets forth the computation of basic and diluted EPS: First Quarter Ended March 27, March 29, (Thousands, except per share amounts) 2020 2019 Numerator for basic and diluted EPS: Net (loss) income $ (3,103 ) $ 16,906 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,384 20,267 Effect of dilutive securities: Stock appreciation rights — 107 Restricted stock units — 83 Performance-based restricted stock units — 149 Diluted potential common shares — 339 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,384 20,606 Basic EPS $ (0.15 ) $ 0.83 Diluted EPS $ (0.15 ) $ 0.82 Adjusted weighted-average shares outstanding - diluted for the three months ended March 27, 2020 excludes the dilutive effect of approximately 239,000 shares, primarily related to restricted stock units and stock appreciation rights, as their inclusion would have been anti-dilutive due to the Company's net loss. Additionally, weighted average shares outstanding - diluted exclude securities totaling 302,573 and 201,394 for the quarters ended March 27, 2020 and March 29, 2019 , respectively. These securities primarily related to restricted stock units and stock appreciation rights with fair market values and exercise prices less than the average market price of the Company's common shares and were excluded from the dilution calculation as the effect would have been anti-dilutive. |
Inventories
Inventories | 3 Months Ended |
Mar. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories on the Consolidated Balance Sheets are summarized as follows: March 27, December 31, (Thousands) 2020 2019 Raw materials and supplies $ 46,843 $ 35,612 Work in process 180,123 177,780 Finished goods 26,144 25,506 Subtotal $ 253,110 $ 238,898 Less: LIFO reserve balance 48,408 48,508 Inventories $ 204,702 $ 190,390 The liquidation of last in, first out (LIFO) inventory layers had no impact to cost of sales in the first quarter of 2020 or 2019. The Company maintains the majority of the precious metals and copper used in production on a consignment basis in order to reduce our exposure to metal price movements and to reduce our working capital investment. The notional value of off-balance sheet precious metals and copper was $338.5 million as of March 27, 2020 versus $309.3 million as of December 31, 2019. |
Held for Sale
Held for Sale | 3 Months Ended |
Mar. 27, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | As of March 27, 2020, the Company committed to a plan to sell its Large Area Coatings (LAC) reporting unit within the Precision Coatings segment and determined that it met the criteria to be classified as held for sale. Therefore, its assets and liabilities have been presented as held for sale in the Consolidated Balance Sheet as of March 27, 2020. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. The Company entered into a letter of intent to sell the LAC reporting unit in March 2020. Before measuring the fair value less costs to sell of the disposal group as a whole, the Company first reviewed individual assets and liabilities to determine if any fair value adjustments were required. Based on the letter of intent entered into by the Company and the prospective buyer, the Company recorded a goodwill impairment charge of $9.1 million to write-off the remaining balance of goodwill for the LAC reporting unit. The Company determined fair value based on its expected proceeds to be received, which it concluded is most representative of the value of the assets. The Company then estimated the fair value of the disposal group as a whole, less costs to sell, and compared the fair value to the remaining carrying value. Based on this review, the Company recorded an additional $1.7 million asset impairment loss. The assets and liabilities of the LAC reporting unit classified as held for sale at March 27, 2020 were as follows: (Thousands) Accounts receivable, net $ 3,902 Inventories, net 1,650 Prepaid and other current assets 56 Property, plant, and equipment - net 2,516 Operating lease, right-of-use assets 777 Impairment on carrying value $ (1,713 ) Assets held for sale $ 7,188 Accounts payable $ 1,528 Salaries and wages 236 Other liabilities and accrued items 808 Operating lease liabilities 588 Other long term liabilities 44 Liabilities held for sale $ 3,204 The pending transaction is subject to the entry into a definitive agreement and customary closing conditions and is expected to close no later than the third quarter of 2020. Excluding the $9.1 million goodwill impairment charge and $1.7 million asset impairment charge recorded in the first quarter of 2020, the operating results of the LAC reporting unit were not material to the Company for any period presented. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 27, 2020 | |
Goodwill Disclosure [Abstract] | |
Goodwill | Goodwill A summary of changes in goodwill by reportable segment is as follows: (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Total Balance at December 31, 2019 $ 1,899 $ 50,190 $ 26,922 $ 79,011 Impairment charge — — (9,053 ) (9,053 ) Other — (126 ) — (126 ) Balance at March 27, 2020 $ 1,899 $ 50,064 $ 17,869 $ 69,832 Goodwill is reviewed annually for impairment or more frequently if impairment indicators arise. The Company conducts its annual goodwill impairment assessment as of the first day of the fourth quarter, or more frequently under certain circumstances. Goodwill is assigned to the reporting unit, which is the operating segment level or one level below the operating segment. To date the Company has recorded $20.6 million of impairment charges related to goodwill in the LAC reporting unit. See Note I for additional information. |
Customer Prepayments
Customer Prepayments | 3 Months Ended |
Mar. 27, 2020 | |
Customer Prepayments [Abstract] | |
Customer Prepayments Investment Agreement [Text Block] | Customer Prepayments As of the end of the first quarter of 2020, the Company has received $11.8 million of prepayments from a customer to enable the Company to establish a new manufacturing facility to supply product to the customer. The Company expects to finalize a long-term supply agreement later this year. The prepayments from the customer are expected to be applied when commercial production of the product is sold and delivered to the customer. Accordingly, the $11.8 million of prepayments are classified as Unearned Income in the Consolidated Balance Sheet, and the liability is expected to be settled as commercial shipments are made. |
Pensions and Other Post-employm
Pensions and Other Post-employment Benefits | 3 Months Ended |
Mar. 27, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Post-employment Benefits | Pensions and Other Post-employment Benefits The following is a summary of the net periodic benefit cost for the first quarter of 2020 and 2019 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan. Pension Benefits Other Benefits First Quarter Ended First Quarter Ended March 27, March 29, March 27, March 29, (Thousands) 2020 2019 2020 2019 Components of net periodic benefit cost (benefit) Service cost $ — $ 1,340 $ 15 $ 17 Interest cost 1,215 1,557 53 100 Expected return on plan assets (2,205 ) (2,123 ) — — Amortization of prior service cost (benefit) — 120 (374 ) (374 ) Amortization of net loss (gain) 284 804 (83 ) (23 ) Net periodic benefit (benefit) cost $ (706 ) $ 1,698 $ (389 ) $ (280 ) The Company did not make any contributions to its domestic defined benefit plan in the first quarter of 2020 and made contributions of $1.5 million in the first quarter of 2019. The Company reports the service cost component of net periodic benefit cost in the same line item as other compensation costs in operating expenses and the non-service cost components of net periodic benefit cost in Other non-operating (income) expense. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 27, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the first quarter of 2020 and 2019 are as follows: Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Precious Metals Copper Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at December 31, 2019 $ 1,324 $ (452 ) $ 25 $ 897 $ (41,346 ) $ (5,013 ) $ (45,462 ) Other comprehensive (loss) income before reclassifications (142 ) (823 ) (778 ) (1,743 ) — (873 ) (2,616 ) Amounts reclassified from accumulated other comprehensive income (1 ) 318 321 638 (24 ) — 614 Net current period other comprehensive income (loss) before tax (143 ) (505 ) (457 ) (1,105 ) (24 ) (873 ) (2,002 ) Deferred taxes (33 ) (116 ) (102 ) (251 ) (40 ) — (291 ) Net current period other comprehensive income (loss) after tax (110 ) (389 ) (355 ) (854 ) 16 (873 ) (1,711 ) Balance at March 27, 2020 $ 1,214 $ (841 ) $ (330 ) $ 43 $ (41,330 ) $ (5,886 ) $ (47,173 ) Balance at December 31, 2018 $ 1,263 $ 79 $ (441 ) $ 901 $ (54,543 ) $ (4,592 ) $ (58,234 ) Other comprehensive income (loss) before reclassifications 517 (73 ) 884 1,328 — (503 ) 825 Amounts reclassified from accumulated other comprehensive income 2 (61 ) (71 ) (130 ) 660 — 530 Net current period other comprehensive income (loss) before tax 519 (134 ) 813 1,198 660 (503 ) 1,355 Deferred taxes 119 (31 ) 183 271 120 — 391 Net current period other comprehensive income (loss) after tax 400 (103 ) 630 927 540 (503 ) 964 Balance at March 29, 2019 $ 1,663 $ (24 ) $ 189 $ 1,828 $ (54,003 ) $ (5,095 ) $ (57,270 ) Reclassifications from accumulated other comprehensive income of gains and losses on foreign currency cash flow hedges are recorded in Net sales in the Consolidated Statements of (Loss) Income. Reclassifications from accumulated other comprehensive income of gains and losses on precious metal cash flow hedges are recorded in Cost of sales in the Consolidated Statements of (Loss) Income. Refer to Note P for additional details on cash flow hedges. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 3 Months Ended |
Mar. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation Expense | Stock-based Compensation Expense Stock-based compensation expense, which includes awards settled in shares and in cash, was $1.0 million and $2.7 million in the first quarter of 2020 and 2019, respectively. The Company granted 64,636 stock appreciation rights (SARs) to certain employees during the first three months of 2020 . The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the three months ended March 27, 2020 were $50.95 and $13.67 , respectively. The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model: Risk-free interest rate 1.41 % Dividend yield 0.9 % Volatility 31.8 % Expected term (in years) 4.8 The Company granted 60,652 stock-settled restricted stock units (RSUs) to certain employees during the first three months of 2020. The Company measures the fair value of stock-settled RSUs based on the closing market price of a share of Materion common stock on the date of the grant. The weighted-average fair value per share was $49.53 for stock-settled RSUs granted to employees during the three months ended March 27, 2020 . RSUs are expensed over the vesting period of three years . The Company granted stock-settled performance-based restricted stock units (PRSUs) to certain employees in the first three months of 2020 . The weighted-average fair value of the stock-settled PRSUs was $57.65 per share and will be expensed over the vesting period of three years . The final payout to the employees for all PRSUs will be based upon the Company’s return on invested capital and the total return to shareholders over the vesting period relative to a peer group’s performance over the same period. At March 27, 2020 , unamortized compensation cost related to the unvested portion of all stock-based awards was approximately $13.7 million |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures and records financial instruments at fair value. A hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 — Quoted market prices in active markets for identical assets and liabilities; Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 — Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of March 27, 2020 and December 31, 2019 : (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2020 2019 2020 2019 2020 2019 2020 2019 Financial Assets Deferred compensation investments $ 2,719 $ 3,391 $ 2,719 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 175 188 — — 175 188 — — Precious metal swaps — 35 — — — 35 — — Copper swaps — 61 — — — 61 — — Total $ 2,894 $ 3,675 $ 2,719 $ 3,391 $ 175 $ 284 $ — $ — Financial Liabilities Deferred compensation liability $ 2,719 $ 3,391 $ 2,719 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 438 211 — — 438 211 — — Precious metal swaps 1,093 623 — — 1,093 623 — — Copper swaps 424 28 — — 424 28 — — Total $ 4,674 $ 4,253 $ 2,719 $ 3,391 $ 1,955 $ 862 $ — $ — The Company uses a market approach to value the assets and liabilities for financial instruments in the table above. Outstanding contracts are valued through models that utilize market observable inputs, including both spot and forward prices, for the same underlying currencies and metals. The carrying values of the other working capital items and debt in the Consolidated Balance Sheets approximate fair values as of March 27, 2020 and December 31, 2019. The Company's deferred compensation investments and liabilities are based on the fair value of the investments corresponding to the employees’ investment selections, primarily in mutual funds, based on quoted prices in active markets for identical assets. Deferred compensation investments are primarily presented in Other assets. Deferred compensation liabilities are primarily presented in Other long-term liabilities. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 3 Months Ended |
Mar. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activity | Derivative Instruments and Hedging Activity The Company uses derivative contracts to hedge portions of its foreign currency exposures and uses derivatives to hedge a portion of its precious metal and copper exposures. The objectives and strategies for using derivatives in these areas are as follows: Foreign Currency. The Company sells a portion of its products to overseas customers in their local currencies, primarily the euro and yen. The Company secures foreign currency derivatives, mainly forward contracts and options, to hedge these anticipated sales transactions. The purpose of the hedge program is to protect against the reduction in the dollar value of foreign currency sales from adverse exchange rate movements. Should the dollar strengthen significantly, the decrease in the translated value of the foreign currency sales should be partially offset by gains on the hedge contracts. Depending upon the methods used, the hedge contracts may limit the benefits from a weakening U.S. dollar. The use of forward contracts locks in a firm rate and eliminates any downside from an adverse rate movement as well as any benefit from a favorable rate movement. The Company may from time to time choose to hedge with options or a tandem of options, known as a collar. These hedging techniques can limit or eliminate the downside risk but can allow for some or all of the benefit from a favorable rate movement to be realized. Unlike a forward contract, a premium is paid for an option; collars, which are a combination of a put and call option, may have a net premium but can be structured to be cash neutral. The Company will primarily hedge with forward contracts due to the relationship between the cash outlay and the level of risk. The use of foreign currency derivative contracts is governed by policies approved by the Audit Committee of the Board of Directors. A team consisting of senior financial managers reviews the estimated exposure levels, as defined by budgets, forecasts, and other internal data, and determines the timing, amounts, and instruments to use to hedge exposures. Management analyzes the effective hedged rates and the actual and projected gains and losses on the hedging transactions against the program objectives, targeted rates, and levels of risk assumed. Foreign currency contracts are typically layered in at different times for a specified exposure period in order to minimize the impact of market rate movements. Precious Metals. The Company maintains the majority of its precious metal production requirements on consignment in order to reduce its working capital investment and the exposure to metal price movements. When a precious metal product is fabricated and ready for shipment to the customer, the metal is purchased out of consignment at the current market price. The price paid by the Company forms the basis for the price charged to the customer. This methodology allows for changes in either direction in the market prices of the precious metals used by the Company to be passed through to the customer and reduces the impact changes in prices could have on the Company's margins and operating profit. The consigned metal is owned by financial institutions that charge the Company a financing fee based upon the current value of the metal on hand. In certain instances, a customer may want to establish the price for the precious metal at the time the sales order is placed rather than at the time of shipment. Setting the sales price at a different date than when the material would be purchased potentially creates an exposure to movements in the market price of the metal. Therefore, in these limited situations, the Company may elect to enter into a forward contract to purchase precious metal. The forward contract allows the Company to purchase metal at a fixed price on a specific future date. The price in the forward contract serves as the basis for the price to be charged to the customer. By doing so, the selling price and purchase price are matched, and the Company's price exposure is reduced. The Company refines precious metal-containing materials for its customers and typically will purchase the refined metal from the customer at current market prices. In limited circumstances, the customer may want to fix the price to be paid at the time of the order as opposed to when the material is refined. The customer may also want to fix the price for a set period of time. The Company may then elect to enter into a hedge contract, either a forward contract or a swap, to fix the price for the estimated quantity of metal to be purchased, thereby reducing the exposure to adverse movements in the price of the metal. The Company may also enter into hedges to mitigate the risk relating to the prices of the metals which we process or refine. In certain circumstances, the Company also refines metal from the customer and may retain a portion of the refined metal as payment. The Company may elect to enter into a forward contract to sell precious metal to reduce the Company's price exposure. The Company may from time to time elect to purchase precious metal and hold in inventory rather than on consignment due to potential credit line limitations or other factors. These purchases are typically held for a short duration. A forward contract will be secured at the time of the purchase to fix the price to be used when the metal is transferred back to the consignment line, thereby limiting any price exposure during the time when the metal was owned. Copper. The Company also uses copper in its production processes. When possible, fluctuations in the purchase price of copper are passed on to customers in the form of price adders or reductions. While over time the Company's price exposure to copper is generally in balance, there can be a lag between the change in the Company's cost and the pass-through to its customers, resulting in higher or lower margins in a given period. To mitigate this impact, the Company hedges a portion of this pricing risk. The Company will only enter into a derivative contract if there is an underlying identified exposure. Contracts are typically held to maturity. The Company does not engage in derivative trading activities and does not use derivatives for speculative purposes. The Company only uses hedge contracts that are denominated in the same currency or metal as the underlying exposure. All derivatives are recorded on the balance sheet at fair value. If the derivative is designated and effective as a cash flow hedge, changes in the fair value of the derivative are recognized in other comprehensive income (OCI) until the hedged item is recognized in earnings. The ineffective portion of a derivative's fair value, if any, is recognized in earnings immediately. If a derivative is not a hedge, changes in the fair value are adjusted through income. The fair values of the outstanding derivatives are recorded on the balance sheet as assets (if the derivatives are in a gain position) or liabilities (if the derivatives are in a loss position). The fair values will also be classified as short-term or long-term depending upon their maturity dates. The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments (on a gross basis) and balance sheet classification as of March 27, 2020 and December 31, 2019 : March 27, 2020 December 31, 2019 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Foreign currency forward contracts Prepaid expenses $ 1,297 $ 3 $ 13,734 $ 95 Other liabilities and accrued items 12,471 21 5,757 16 These outstanding foreign currency derivatives were related to balance sheet hedges and intercompany loans. Other-net included $0.6 million of foreign currency gains relating to these derivatives during the first quarter of 2020 and included no foreign currency impact in the first quarter of 2019. The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of March 27, 2020 and December 31, 2019 : March 27, 2020 December 31, 2019 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Prepaid expenses Foreign currency forward contracts - yen $ 807 $ 16 $ 1,025 $ 10 Foreign currency forward contracts - euro 12,434 156 3,466 83 Precious metal swaps — — 1,116 34 Copper swaps — — 1,951 61 Total 13,241 172 7,558 188 Other assets Precious metal swaps — — 157 1 Other liabilities and accrued items Foreign currency forward contracts - yen 2,780 32 2,355 12 Foreign currency forward contracts - euro 6,956 328 15,686 183 Precious metal swaps 8,441 1,093 7,034 618 Copper swaps 3,140 424 1,266 28 Total 21,317 1,877 26,341 841 Other long-term liabilities Foreign currency forward contracts - yen 109 4 — — Foreign currency forward contracts - euro 1,075 53 — — Precious metal swaps — — 149 5 Total 1,184 57 149 5 Total $ 35,742 $ 1,762 $ 34,205 $ 657 All of these contracts were designated and effective as cash flow hedges. The Company expects to relieve substantially the entire balance in OCI as of March 27, 2020 to the Consolidated Statements of Income within the next 15-month period. Refer to Note M for additional OCI details. The following table summarizes the amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification as of the first quarter of 2020 and 2019: First Quarter Ended First Quarter Ended (Thousands) March 27, 2020 March 29, 2019 Hedging relationship Line item Foreign currency forward contracts Net sales $ (1 ) $ 2 Precious metal swaps Cost of sales 318 (61 ) Copper swaps Cost of sales 321 (71 ) Total $ 638 $ (130 ) |
Contingencies
Contingencies | 3 Months Ended |
Mar. 27, 2020 | |
Loss Contingency [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies Legal Proceedings . For general information regarding legal proceedings relating to Chronic Beryllium Disease Claims , refer to Note R ("Contingencies and Commitments") in the Company's 2019 Annual Report on Form 10-K. One beryllium case was filed in 2019 and was outstanding as of March 27, 2020. The Company does not expect the resolution of this matter to have a material impact on the consolidated financial statements. Other Litigation. The Company is party to several pending legal proceedings and claims arising in the normal course of business. The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matters. To the extent there is a reasonable possibility that the losses could exceed any amounts accrued, the Company will adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. Environmental Proceedings. The Company has an active environmental compliance program and records reserves for the probable cost of identified environmental remediation projects. The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies. The undiscounted reserve balance was $5.8 million and $5.9 million at March 27, 2020 and December 31, 2019 , respectively. Environmental projects tend to be long-term, and the final actual remediation costs may differ from the amounts currently recorded. |
Basis of Accounting (Policies)
Basis of Accounting (Policies) | 3 Months Ended |
Mar. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior periods have been reclassified to conform to the 2020 consolidated financial statement presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2019 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. |
New Pronouncements (Policies)
New Pronouncements (Policies) | 3 Months Ended |
Mar. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Pronouncements Adopted: In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses . This ASU requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. The Company adopted this guidance as of January 1, 2020, and the adoption did not have a material effect on the Company’s consolidated financial statements. |
Revenue Recognition Accounting
Revenue Recognition Accounting Policy (Policies) | 3 Months Ended |
Mar. 27, 2020 | |
Accounting Policies [Abstract] | |
Revenue [Policy Text Block] | Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue, in an amount that reflects the consideration to which it expects to be entitled, upon satisfaction of a performance obligation, by transferring control over a product to the customer. Control over the product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product. Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total First Quarter 2020 Net sales $ 99,067 $ 160,165 $ 18,714 $ — $ 277,946 Intersegment sales 215 9,191 — — 9,406 Operating profit (loss) 4,791 4,785 (9,592 ) (4,547 ) (4,563 ) First Quarter 2019 Net sales $ 127,113 $ 144,025 $ 30,303 $ — $ 301,441 Intersegment sales 9 17,213 — — 17,222 Operating profit (loss) 18,958 7,080 2,077 (6,728 ) 21,387 |
Disaggregation of Revenue | The following table disaggregates revenue for each segment by end market for the first quarter of 2020 and 2019: (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total First Quarter 2020 End Market Semiconductor $ 906 $ 120,819 $ 11 $ — $ 121,736 Industrial 23,340 8,362 3,097 — 34,799 Aerospace and Defense 14,206 1,426 5,109 — 20,741 Consumer Electronics 14,695 118 3,541 — 18,354 Automotive 18,163 2,080 17 — 20,260 Energy 5,429 23,468 — — 28,897 Telecom and Data Center 9,989 871 — — 10,860 Other 12,339 3,021 6,939 — 22,299 Total $ 99,067 $ 160,165 $ 18,714 $ — $ 277,946 First Quarter 2019 End Market Semiconductor $ 1,965 $ 105,090 $ 112 $ — $ 107,167 Industrial 26,430 7,928 4,150 — 38,508 Aerospace and Defense 27,074 1,493 4,871 — 33,438 Consumer Electronics 13,555 205 3,486 — 17,246 Automotive 20,713 1,353 221 — 22,287 Energy 11,094 22,197 — — 33,291 Telecom and Data Center 17,592 202 — — 17,794 Other 8,690 5,557 17,463 — 31,710 Total $ 127,113 $ 144,025 $ 30,303 $ — $ 301,441 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Contract Balances : The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities: (Thousands) March 27, 2020 December 31, 2019 $ change % change Accounts receivable, trade $ 129,139 $ 141,168 $ (12,029 ) (9 )% Unbilled receivables 9,265 13,583 (4,318 ) (32 )% Unearned revenue 2,317 3,380 (1,063 ) (31 )% |
Other-net (Tables)
Other-net (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Other Income and Expenses [Abstract] | |
Summary of Other-Net Expense | Other-net for the first quarter of 2020 and 2019 is summarized as follows: First Quarter Ended March 27, March 29, (Thousands) 2020 2019 Metal consignment fees $ 2,229 $ 3,091 Amortization of intangible assets 188 390 Foreign currency (gain) loss (62 ) 77 Net loss on disposal of fixed assets 46 24 Other items (122 ) 539 Total $ 2,279 $ 4,121 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted EPS: First Quarter Ended March 27, March 29, (Thousands, except per share amounts) 2020 2019 Numerator for basic and diluted EPS: Net (loss) income $ (3,103 ) $ 16,906 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,384 20,267 Effect of dilutive securities: Stock appreciation rights — 107 Restricted stock units — 83 Performance-based restricted stock units — 149 Diluted potential common shares — 339 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,384 20,606 Basic EPS $ (0.15 ) $ 0.83 Diluted EPS $ (0.15 ) $ 0.82 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories on the Consolidated Balance Sheets are summarized as follows: March 27, December 31, (Thousands) 2020 2019 Raw materials and supplies $ 46,843 $ 35,612 Work in process 180,123 177,780 Finished goods 26,144 25,506 Subtotal $ 253,110 $ 238,898 Less: LIFO reserve balance 48,408 48,508 Inventories $ 204,702 $ 190,390 |
Held for Sale (Tables)
Held for Sale (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The assets and liabilities of the LAC reporting unit classified as held for sale at March 27, 2020 were as follows: (Thousands) Accounts receivable, net $ 3,902 Inventories, net 1,650 Prepaid and other current assets 56 Property, plant, and equipment - net 2,516 Operating lease, right-of-use assets 777 Impairment on carrying value $ (1,713 ) Assets held for sale $ 7,188 Accounts payable $ 1,528 Salaries and wages 236 Other liabilities and accrued items 808 Operating lease liabilities 588 Other long term liabilities 44 Liabilities held for sale $ 3,204 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Goodwill Disclosure [Abstract] | |
Schedule of Goodwill | A summary of changes in goodwill by reportable segment is as follows: (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Total Balance at December 31, 2019 $ 1,899 $ 50,190 $ 26,922 $ 79,011 Impairment charge — — (9,053 ) (9,053 ) Other — (126 ) — (126 ) Balance at March 27, 2020 $ 1,899 $ 50,064 $ 17,869 $ 69,832 |
Pensions and Other Post-emplo_2
Pensions and Other Post-employment Benefits (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following is a summary of the net periodic benefit cost for the first quarter of 2020 and 2019 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan. Pension Benefits Other Benefits First Quarter Ended First Quarter Ended March 27, March 29, March 27, March 29, (Thousands) 2020 2019 2020 2019 Components of net periodic benefit cost (benefit) Service cost $ — $ 1,340 $ 15 $ 17 Interest cost 1,215 1,557 53 100 Expected return on plan assets (2,205 ) (2,123 ) — — Amortization of prior service cost (benefit) — 120 (374 ) (374 ) Amortization of net loss (gain) 284 804 (83 ) (23 ) Net periodic benefit (benefit) cost $ (706 ) $ 1,698 $ (389 ) $ (280 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the first quarter of 2020 and 2019 are as follows: Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Precious Metals Copper Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at December 31, 2019 $ 1,324 $ (452 ) $ 25 $ 897 $ (41,346 ) $ (5,013 ) $ (45,462 ) Other comprehensive (loss) income before reclassifications (142 ) (823 ) (778 ) (1,743 ) — (873 ) (2,616 ) Amounts reclassified from accumulated other comprehensive income (1 ) 318 321 638 (24 ) — 614 Net current period other comprehensive income (loss) before tax (143 ) (505 ) (457 ) (1,105 ) (24 ) (873 ) (2,002 ) Deferred taxes (33 ) (116 ) (102 ) (251 ) (40 ) — (291 ) Net current period other comprehensive income (loss) after tax (110 ) (389 ) (355 ) (854 ) 16 (873 ) (1,711 ) Balance at March 27, 2020 $ 1,214 $ (841 ) $ (330 ) $ 43 $ (41,330 ) $ (5,886 ) $ (47,173 ) Balance at December 31, 2018 $ 1,263 $ 79 $ (441 ) $ 901 $ (54,543 ) $ (4,592 ) $ (58,234 ) Other comprehensive income (loss) before reclassifications 517 (73 ) 884 1,328 — (503 ) 825 Amounts reclassified from accumulated other comprehensive income 2 (61 ) (71 ) (130 ) 660 — 530 Net current period other comprehensive income (loss) before tax 519 (134 ) 813 1,198 660 (503 ) 1,355 Deferred taxes 119 (31 ) 183 271 120 — 391 Net current period other comprehensive income (loss) after tax 400 (103 ) 630 927 540 (503 ) 964 Balance at March 29, 2019 $ 1,663 $ (24 ) $ 189 $ 1,828 $ (54,003 ) $ (5,095 ) $ (57,270 ) |
Stock-based Compensation Expe_2
Stock-based Compensation Expense Tables (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Share Based Payment Award SARs Valuation Assumptions [Table Text Block] | The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model: Risk-free interest rate 1.41 % Dividend yield 0.9 % Volatility 31.8 % Expected term (in years) 4.8 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Information and Derivative Financial Instruments | The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of March 27, 2020 and December 31, 2019 : (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2020 2019 2020 2019 2020 2019 2020 2019 Financial Assets Deferred compensation investments $ 2,719 $ 3,391 $ 2,719 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 175 188 — — 175 188 — — Precious metal swaps — 35 — — — 35 — — Copper swaps — 61 — — — 61 — — Total $ 2,894 $ 3,675 $ 2,719 $ 3,391 $ 175 $ 284 $ — $ — Financial Liabilities Deferred compensation liability $ 2,719 $ 3,391 $ 2,719 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 438 211 — — 438 211 — — Precious metal swaps 1,093 623 — — 1,093 623 — — Copper swaps 424 28 — — 424 28 — — Total $ 4,674 $ 4,253 $ 2,719 $ 3,391 $ 1,955 $ 862 $ — $ — |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity Tables (Tables) | 3 Months Ended |
Mar. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments NonHedging [Table Text Block] | The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments (on a gross basis) and balance sheet classification as of March 27, 2020 and December 31, 2019 : March 27, 2020 December 31, 2019 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Foreign currency forward contracts Prepaid expenses $ 1,297 $ 3 $ 13,734 $ 95 Other liabilities and accrued items 12,471 21 5,757 16 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of March 27, 2020 and December 31, 2019 : March 27, 2020 December 31, 2019 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Prepaid expenses Foreign currency forward contracts - yen $ 807 $ 16 $ 1,025 $ 10 Foreign currency forward contracts - euro 12,434 156 3,466 83 Precious metal swaps — — 1,116 34 Copper swaps — — 1,951 61 Total 13,241 172 7,558 188 Other assets Precious metal swaps — — 157 1 Other liabilities and accrued items Foreign currency forward contracts - yen 2,780 32 2,355 12 Foreign currency forward contracts - euro 6,956 328 15,686 183 Precious metal swaps 8,441 1,093 7,034 618 Copper swaps 3,140 424 1,266 28 Total 21,317 1,877 26,341 841 Other long-term liabilities Foreign currency forward contracts - yen 109 4 — — Foreign currency forward contracts - euro 1,075 53 — — Precious metal swaps — — 149 5 Total 1,184 57 149 5 Total $ 35,742 $ 1,762 $ 34,205 $ 657 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes the amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification as of the first quarter of 2020 and 2019: First Quarter Ended First Quarter Ended (Thousands) March 27, 2020 March 29, 2019 Hedging relationship Line item Foreign currency forward contracts Net sales $ (1 ) $ 2 Precious metal swaps Cost of sales 318 (61 ) Copper swaps Cost of sales 321 (71 ) Total $ 638 $ (130 ) |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Segment Reporting Information | ||
Net sales | $ 277,946 | $ 301,441 |
Intersegment sales | 9,406 | 17,222 |
Operating (loss) profit | (4,563) | 21,387 |
Performance Alloys and Composites | ||
Segment Reporting Information | ||
Net sales | 99,067 | 127,113 |
Intersegment sales | 215 | 9 |
Operating (loss) profit | 4,791 | 18,958 |
Advanced Materials | ||
Segment Reporting Information | ||
Net sales | 160,165 | 144,025 |
Intersegment sales | 9,191 | 17,213 |
Operating (loss) profit | 4,785 | 7,080 |
Precision Coatings | ||
Segment Reporting Information | ||
Net sales | 18,714 | 30,303 |
Intersegment sales | 0 | 0 |
Operating (loss) profit | (9,592) | 2,077 |
Other | ||
Segment Reporting Information | ||
Net sales | 0 | 0 |
Intersegment sales | 0 | 0 |
Operating (loss) profit | $ (4,547) | $ (6,728) |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 277,946 | $ 301,441 |
Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 121,736 | 107,167 |
Consumer Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18,354 | 17,246 |
Industrial Components | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 34,799 | 38,508 |
Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 20,741 | 33,438 |
Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 28,897 | 33,291 |
Telecomm and Data Center | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10,860 | 17,794 |
Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 20,260 | 22,287 |
Other End Market | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 22,299 | 31,710 |
Performance Alloys and Composites | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 99,067 | 127,113 |
Performance Alloys and Composites | Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 906 | 1,965 |
Performance Alloys and Composites | Consumer Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14,695 | 13,555 |
Performance Alloys and Composites | Industrial Components | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23,340 | 26,430 |
Performance Alloys and Composites | Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14,206 | 27,074 |
Performance Alloys and Composites | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5,429 | 11,094 |
Performance Alloys and Composites | Telecomm and Data Center | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9,989 | 17,592 |
Performance Alloys and Composites | Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18,163 | 20,713 |
Performance Alloys and Composites | Other End Market | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 12,339 | 8,690 |
Advanced Materials | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 160,165 | 144,025 |
Advanced Materials | Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 120,819 | 105,090 |
Advanced Materials | Consumer Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 118 | 205 |
Advanced Materials | Industrial Components | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8,362 | 7,928 |
Advanced Materials | Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,426 | 1,493 |
Advanced Materials | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23,468 | 22,197 |
Advanced Materials | Telecomm and Data Center | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 871 | 202 |
Advanced Materials | Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,080 | 1,353 |
Advanced Materials | Other End Market | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,021 | 5,557 |
Precision Coatings | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18,714 | 30,303 |
Precision Coatings | Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11 | 112 |
Precision Coatings | Consumer Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,541 | 3,486 |
Precision Coatings | Industrial Components | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,097 | 4,150 |
Precision Coatings | Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5,109 | 4,871 |
Precision Coatings | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Precision Coatings | Telecomm and Data Center | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Precision Coatings | Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 17 | 221 |
Precision Coatings | Other End Market | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 6,939 | 17,463 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Consumer Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Industrial Components | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Telecomm and Data Center | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Other End Market | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2020 | Mar. 29, 2019 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Increase (Decrease) in Deferred Revenue | $ (938) | $ (724) | |
Accounts receivable, trade | |||
Capitalized Contract Cost [Line Items] | |||
Accounts Receivable, Trade | 129,139 | $ 141,168 | |
Change in Accounts Receivable, Trade | $ (12,029) | ||
Contract Asset Percent Change | (9.00%) | ||
Unbilled Receivables | |||
Capitalized Contract Cost [Line Items] | |||
Unbilled Contracts Receivable | $ 9,265 | 13,583 | |
Change in Unbilled Receivables | $ (4,318) | ||
Contract Asset Percent Change | (32.00%) | ||
Unearned revenue | |||
Capitalized Contract Cost [Line Items] | |||
Deferred Revenue | $ 2,317 | $ 3,380 | |
Increase (Decrease) in Deferred Revenue | $ (1,063) | ||
Contract Liability Percent Change | (31.00%) |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) $ in Millions | 3 Months Ended |
Mar. 27, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 2.1 |
Revenue Recognition (Details 2)
Revenue Recognition (Details 2) $ in Millions | Mar. 27, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 37 |
Other-net (Detail)
Other-net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Other Income and Expenses [Abstract] | ||
Metal consignment fees | $ 2,229 | $ 3,091 |
Amortization of Intangible Assets | 188 | 390 |
Foreign currency (gain) loss | (62) | 77 |
Net loss on disposal of fixed assets | 46 | 24 |
Other items | (122) | 539 |
Total | $ 2,279 | $ 4,121 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020USD ($)Employee | Mar. 29, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2,164 | $ 0 |
Performance Alloys and Composites | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,200 | |
Severance Costs | 500 | |
Remaining severance payments | $ 500 | |
Number of positions eliminated | Employee | 63 | |
Other Restructuring Costs | $ 1,300 | |
Restructuring cost, expected | $ 6,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 19.70% | 18.20% |
Effective income tax rate, amount | $ 0.2 | |
Income tax expense from goodwill impairment | 0.7 | |
Income Tax Expense (Benefit), Stock-Based Compensation | $ 0.4 | $ 0.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Numerator For Basic And Diluted EPS: | ||
Net (loss) income | $ (3,103) | $ 16,906 |
Denominator for basic EPS: | ||
Weighted-average shares outstanding | 20,384 | 20,267 |
Effect of dilutive securities: | ||
Diluted potential common shares (in shares) | 0 | 339 |
Denominator for diluted EPS: | ||
Adjusted weighted-average shares outstanding | 20,384 | 20,606 |
Basic EPS (in usd per share) | $ (0.15) | $ 0.83 |
Diluted EPS (in usd per share) | $ (0.15) | $ 0.82 |
Stock Appreciation Rights (SARs) | ||
Effect of dilutive securities: | ||
Dilutive effect of share-based compensation (in shares) | 0 | 107 |
Restricted Stock Units (RSUs) | ||
Effect of dilutive securities: | ||
Dilutive effect of share-based compensation (in shares) | 0 | 83 |
Performance Shares | ||
Effect of dilutive securities: | ||
Dilutive effect of share-based compensation (in shares) | 0 | 149 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
In-The-Money [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from diluted EPS calculation | 239,000 | |
Out-of-The-Money [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from diluted EPS calculation | 302,573 | 201,394 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Principally average cost: | ||
Raw materials and supplies | $ 46,843 | $ 35,612 |
Work in process | 180,123 | 177,780 |
Finished goods | 26,144 | 25,506 |
Subtotal | 253,110 | 238,898 |
Less: LIFO reserve balance | 48,408 | 48,508 |
Inventories | $ 204,702 | $ 190,390 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
LIFO liquidation effect | $ 0 | $ 0 | |
Notional Amount of Nonderivative Instruments | $ 338,500,000 | $ 309,300,000 |
Held for Sale (Details)
Held for Sale (Details) - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 3,902 | |
Inventories, net | 1,650 | |
Prepaid and other current assets | 56 | |
Property, plant, and equipment - net | 2,516 | |
Operating lease, right-of-use assets | 777 | |
Impairment on carrying value | (1,713) | |
Assets held for sale | 7,188 | $ 0 |
Accounts payable | 1,528 | |
Salaries and wages | 236 | |
Other liabilities and accrued items | 808 | |
Operating lease liabilities | 588 | |
Other long term liabilities | 44 | |
Liabilities held for sale | $ 3,204 | $ 0 |
Held for Sale (Details Textual)
Held for Sale (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Held-for-sale impairment charges | $ 1,713 | $ 0 |
Goodwill impairment charges | 9,053 | 0 |
Asset impairment charges | $ 10,766 | $ 0 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2020 | Mar. 29, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Impairment charge | $ (9,053) | $ 0 | |
Other | (126) | ||
Goodwill | 69,832 | $ 79,011 | |
Performance Alloys and Composites | |||
Goodwill [Line Items] | |||
Impairment charge | 0 | ||
Other | 0 | ||
Goodwill | 1,899 | 1,899 | |
Advanced Materials | |||
Goodwill [Line Items] | |||
Impairment charge | 0 | ||
Other | (126) | ||
Goodwill | 50,064 | 50,190 | |
Precision Coatings | |||
Goodwill [Line Items] | |||
Impairment charge | (9,053) | ||
Other | 0 | ||
Goodwill | $ 17,869 | $ 26,922 |
Goodwill (Details 1)
Goodwill (Details 1) $ in Millions | 3 Months Ended |
Mar. 27, 2020USD ($) | |
Goodwill Disclosure [Abstract] | |
Impairment charges | $ 20.6 |
Customer Prepayments (Details)
Customer Prepayments (Details) $ in Millions | Mar. 27, 2020USD ($) |
Customer Prepayments [Abstract] | |
Deferred Income | $ 11.8 |
Pensions and Other Post-emplo_3
Pensions and Other Post-employment Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Pension Benefits | ||
Components of net periodic benefit cost | ||
Service cost | $ 0 | $ 1,340 |
Interest cost | 1,215 | 1,557 |
Expected return on plan assets | (2,205) | (2,123) |
Amortization of prior service benefit | 0 | 120 |
Amortization of net loss (gain) | 284 | 804 |
Total net benefit cost (benefit) | (706) | 1,698 |
Other Benefits | ||
Components of net periodic benefit cost | ||
Service cost | 15 | 17 |
Interest cost | 53 | 100 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service benefit | (374) | (374) |
Amortization of net loss (gain) | (83) | (23) |
Total net benefit cost (benefit) | $ (389) | $ (280) |
Pensions and Other Post-emplo_4
Pensions and Other Post-employment Benefits (Detail 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | $ 0 | $ 1,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 27, 2020 | Mar. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | $ (47,173) | $ (57,270) | $ (45,462) | $ (58,234) |
Activity | ||||
Other comprehensive income (loss) before reclassifications | (2,616) | 825 | ||
Amounts reclassified from accumulated other comprehensive income | 614 | 530 | ||
Net current period other comprehensive income (loss) before tax | (2,002) | 1,355 | ||
Deferred taxes on current period activity | (291) | 391 | ||
Net current period other comprehensive (loss) income after tax | (1,711) | 964 | ||
Pension and Post Employment Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | (41,330) | (54,003) | (41,346) | (54,543) |
Activity | ||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | (24) | 660 | ||
Net current period other comprehensive income (loss) before tax | (24) | 660 | ||
Deferred taxes on current period activity | (40) | 120 | ||
Net current period other comprehensive (loss) income after tax | 16 | 540 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | (5,886) | (5,095) | (5,013) | (4,592) |
Activity | ||||
Other comprehensive income (loss) before reclassifications | (873) | (503) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Net current period other comprehensive income (loss) before tax | (873) | (503) | ||
Deferred taxes on current period activity | 0 | 0 | ||
Net current period other comprehensive (loss) income after tax | (873) | (503) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | 43 | 1,828 | 897 | 901 |
Activity | ||||
Other comprehensive income (loss) before reclassifications | (1,743) | 1,328 | ||
Amounts reclassified from accumulated other comprehensive income | 638 | (130) | ||
Net current period other comprehensive income (loss) before tax | (1,105) | 1,198 | ||
Deferred taxes on current period activity | (251) | 271 | ||
Net current period other comprehensive (loss) income after tax | (854) | 927 | ||
Foreign currency forward contract | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | 1,214 | 1,663 | 1,324 | 1,263 |
Activity | ||||
Other comprehensive income (loss) before reclassifications | (142) | 517 | ||
Amounts reclassified from accumulated other comprehensive income | (1) | 2 | ||
Net current period other comprehensive income (loss) before tax | (143) | 519 | ||
Deferred taxes on current period activity | (33) | 119 | ||
Net current period other comprehensive (loss) income after tax | (110) | 400 | ||
Precious Metal Contracts [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | (841) | (24) | (452) | 79 |
Activity | ||||
Other comprehensive income (loss) before reclassifications | (823) | (73) | ||
Amounts reclassified from accumulated other comprehensive income | 318 | (61) | ||
Net current period other comprehensive income (loss) before tax | (505) | (134) | ||
Deferred taxes on current period activity | (116) | (31) | ||
Net current period other comprehensive (loss) income after tax | (389) | (103) | ||
Copper swaps | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||
Accumulated other comprehensive loss | (330) | 189 | $ 25 | $ (441) |
Activity | ||||
Other comprehensive income (loss) before reclassifications | (778) | 884 | ||
Amounts reclassified from accumulated other comprehensive income | 321 | (71) | ||
Net current period other comprehensive income (loss) before tax | (457) | 813 | ||
Deferred taxes on current period activity | (102) | 183 | ||
Net current period other comprehensive (loss) income after tax | $ (355) | $ 630 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense (Detail) - Stock Appreciation Rights (SARs) | 3 Months Ended |
Mar. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.41% |
Dividend yield | 0.90% |
Volatility | 31.80% |
Expected term (in years) | 4 years 9 months 18 days |
Stock-based Compensation Expe_4
Stock-based Compensation Expense Textual (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1 | $ 2.7 |
Document Period End Date | Mar. 27, 2020 | |
Unearned Compensation | $ 13.7 | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted in period | 64,636 | |
Weighted average exercise price on SARs granted in period | $ 50.95 | |
Grant date fair value per unit (in usd per share) | 13.67 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value per unit (in usd per share) | $ 57.65 | |
Vesting period | 3 years | |
Stock Compensation Plan | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted in period | 60,652 | |
Grant date fair value per unit (in usd per share) | $ 49.53 | |
Vesting period | 3 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Investment Assets | $ 2,719 | $ 3,391 |
Foreign Currency Forward Contract | 175 | 188 |
Precious Metal Swaps | 0 | 35 |
Copper Swaps | 0 | 61 |
Total Financial Assets | 2,894 | 3,675 |
Deferred Compensation Investment Related Liability | 2,719 | 3,391 |
Foreign Currency Forward Contract | 438 | 211 |
Precious Metal Swaps | 1,093 | 623 |
Copper Swaps | 424 | 28 |
Total Financial Liabilities | 4,674 | 4,253 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Investment Assets | 2,719 | 3,391 |
Foreign Currency Forward Contract | 0 | 0 |
Precious Metal Swaps | 0 | 0 |
Copper Swaps | 0 | 0 |
Total Financial Assets | 2,719 | 3,391 |
Deferred Compensation Investment Related Liability | 2,719 | 3,391 |
Foreign Currency Forward Contract | 0 | 0 |
Precious Metal Swaps | 0 | 0 |
Copper Swaps | 0 | 0 |
Total Financial Liabilities | 2,719 | 3,391 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Investment Assets | 0 | 0 |
Foreign Currency Forward Contract | 175 | 188 |
Precious Metal Swaps | 0 | 35 |
Copper Swaps | 0 | 61 |
Total Financial Assets | 175 | 284 |
Deferred Compensation Investment Related Liability | 0 | 0 |
Foreign Currency Forward Contract | 438 | 211 |
Precious Metal Swaps | 1,093 | 623 |
Copper Swaps | 424 | 28 |
Total Financial Liabilities | 1,955 | 862 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Investment Assets | 0 | 0 |
Foreign Currency Forward Contract | 0 | 0 |
Precious Metal Swaps | 0 | 0 |
Copper Swaps | 0 | 0 |
Total Financial Assets | 0 | 0 |
Deferred Compensation Investment Related Liability | 0 | 0 |
Foreign Currency Forward Contract | 0 | 0 |
Precious Metal Swaps | 0 | 0 |
Copper Swaps | 0 | 0 |
Total Financial Liabilities | $ 0 | $ 0 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activity (Details - Not designated as hedges) - USD ($) | 3 Months Ended | ||
Mar. 27, 2020 | Mar. 29, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) | |||
Gain on foreign currency derivatives recorded in earnings, net | $ 600,000 | $ 0 | |
Not designated as hedging instrument | Prepaid expenses | Foreign currency forward contract | |||
Derivative Instruments, Gain (Loss) | |||
Notional amount, asset | 1,297,000 | $ 13,734,000 | |
Fair value, asset | 3,000 | 95,000 | |
Not designated as hedging instrument | Other liabilities and accrued items | Foreign currency forward contract | |||
Derivative Instruments, Gain (Loss) | |||
Notional amount, liability | 12,471,000 | 5,757,000 | |
Fair value, liability | $ 21,000 | $ 16,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activity (Details - Designated as hedges) - Designated as hedging instrument - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional amount total | $ 35,742 | $ 34,205 |
Fair value total | 1,762 | 657 |
Prepaid expenses | ||
Derivative [Line Items] | ||
Notional amount, asset | 13,241 | 7,558 |
Fair value, asset | 172 | 188 |
Prepaid expenses | Foreign currency forward contract | Yen | ||
Derivative [Line Items] | ||
Notional amount, asset | 807 | 1,025 |
Fair value, asset | 16 | 10 |
Prepaid expenses | Foreign currency forward contract | Euro | ||
Derivative [Line Items] | ||
Notional amount, asset | 12,434 | 3,466 |
Fair value, asset | 156 | 83 |
Prepaid expenses | Precious metal swaps | ||
Derivative [Line Items] | ||
Notional amount, asset | 0 | 1,116 |
Fair value, asset | 0 | 34 |
Prepaid expenses | Copper swaps | ||
Derivative [Line Items] | ||
Notional amount, asset | 0 | 1,951 |
Fair value, asset | 0 | 61 |
Other assets | Precious metal swaps | ||
Derivative [Line Items] | ||
Notional amount, asset | 0 | 157 |
Fair value, asset | 0 | 1 |
Other liabilities and accrued items | ||
Derivative [Line Items] | ||
Notional amount, liability | 21,317 | 26,341 |
Fair value, liability | 1,877 | 841 |
Other liabilities and accrued items | Foreign currency forward contract | Yen | ||
Derivative [Line Items] | ||
Notional amount, liability | 2,780 | 2,355 |
Fair value, liability | 32 | 12 |
Other liabilities and accrued items | Foreign currency forward contract | Euro | ||
Derivative [Line Items] | ||
Notional amount, liability | 6,956 | 15,686 |
Fair value, liability | 328 | 183 |
Other liabilities and accrued items | Precious metal swaps | ||
Derivative [Line Items] | ||
Notional amount, liability | 8,441 | 7,034 |
Fair value, liability | 1,093 | 618 |
Other liabilities and accrued items | Copper swaps | ||
Derivative [Line Items] | ||
Notional amount, liability | 3,140 | 1,266 |
Fair value, liability | 424 | 28 |
Other long-term liabilities | ||
Derivative [Line Items] | ||
Notional amount, liability | 1,184 | 149 |
Fair value, liability | 57 | 5 |
Other long-term liabilities | Foreign currency forward contract | Yen | ||
Derivative [Line Items] | ||
Notional amount, liability | 109 | 0 |
Fair value, liability | 4 | 0 |
Other long-term liabilities | Foreign currency forward contract | Euro | ||
Derivative [Line Items] | ||
Notional amount, liability | 1,075 | 0 |
Fair value, liability | 53 | 0 |
Other long-term liabilities | Precious metal swaps | ||
Derivative [Line Items] | ||
Notional amount, liability | 0 | 149 |
Fair value, liability | $ 0 | $ 5 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activity (Details - Reclassificatoins from AOCI) - Designated as hedging instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Derivative Instruments, Gain (Loss) | ||
Derivative, Gain (Loss) on Derivative, Net | $ 638 | $ (130) |
Net sales | Foreign currency forward contract | ||
Derivative Instruments, Gain (Loss) | ||
Derivative, Gain (Loss) on Derivative, Net | (1) | 2 |
Cost of sales | Precious metal swaps | ||
Derivative Instruments, Gain (Loss) | ||
Derivative, Gain (Loss) on Derivative, Net | 318 | (61) |
Cost of sales | Copper swaps | ||
Derivative Instruments, Gain (Loss) | ||
Derivative, Gain (Loss) on Derivative, Net | $ 321 | $ (71) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activity Derivative Instruments and Hedging Activity (Details - Foreign Currency Derivatives Recorded in Earnings) - USD ($) | 3 Months Ended | |
Mar. 27, 2020 | Mar. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 600,000 | $ 0 |
Contingencies (Detail)
Contingencies (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 27, 2020 | Dec. 31, 2019 | |
Loss Contingency [Abstract] | ||
Accrual for Environmental Loss Contingencies, Significant Assumptions | The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies. | |
Undiscounted reserve balance | $ 5.8 | $ 5.9 |