Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 26, 2020shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 26, 2020 |
Document Transition Report | false |
Entity File Number | 001-15885 |
Entity Registrant Name | MATERION CORPORATION |
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 |
Entity Address, Postal Zip Code | 44124 |
City Area Code | 216 |
Local Phone Number | 486-4200 |
Title of 12(b) Security | Common Stock, no par value |
Trading Symbol | MTRN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 20,322,225 |
Entity Central Index Key | 0001104657 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 271,468 | $ 297,843 | $ 549,414 | $ 599,284 |
Cost of sales | 223,378 | 228,249 | 455,749 | 460,378 |
Gross margin | 48,090 | 69,594 | 93,665 | 138,906 |
Selling, general, and administrative expense | 32,852 | 39,891 | 63,596 | 79,955 |
Research and development expense | 4,502 | 4,062 | 8,687 | 7,802 |
Goodwill impairment charges | 0 | 0 | 9,053 | 0 |
Held for sale impairment charges | 0 | 0 | 1,713 | 0 |
Restructuring charges | 2,387 | 0 | 4,551 | 0 |
Other - net | (357) | 2,891 | 1,922 | 7,012 |
Operating profit | 8,706 | 22,750 | 4,143 | 44,137 |
Other non-operating (income) expense - net | (851) | 3,112 | (1,795) | 3,357 |
Interest Expense-net | 1,259 | 500 | 1,505 | 966 |
Income before income taxes | 8,298 | 19,138 | 4,433 | 39,814 |
Income tax expense | 1,620 | 3,598 | 858 | 7,368 |
Net income | $ 6,678 | $ 15,540 | $ 3,575 | $ 32,446 |
Basic earnings per share: | ||||
Net income per share of common stock (in dollars per share) | $ 0.33 | $ 0.76 | $ 0.18 | $ 1.60 |
Diluted earnings per share: | ||||
Net income per share of common stock (in dollars per share) | $ 0.32 | $ 0.75 | $ 0.17 | $ 1.57 |
Weighted-average number of shares of common stock outstanding: | ||||
Basic (in shares) | 20,317 | 20,383 | 20,350 | 20,326 |
Diluted (in shares) | 20,554 | 20,666 | 20,587 | 20,635 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,678 | $ 15,540 | $ 3,575 | $ 32,446 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 1,166 | 339 | 293 | (164) |
Derivative and hedging activity, net of tax | 347 | (1,000) | (507) | (73) |
Pension and post-employment benefit adjustment, net of tax | 89 | 13,953 | 105 | 14,493 |
Net current period other comprehensive (loss) income after tax | 1,602 | 13,292 | (109) | 14,256 |
Comprehensive income | $ 8,280 | $ 28,832 | $ 3,466 | $ 46,702 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 265,068 | $ 125,007 |
Accounts receivable, net | 146,527 | 154,751 |
Inventories, net | 209,847 | 190,390 |
Prepaid and other current assets | 29,191 | 21,839 |
Assets held for sale | 5,811 | 0 |
Total current assets | 656,444 | 491,987 |
Deferred income taxes | 1,669 | 1,666 |
Property, plant, and equipment | 924,620 | 916,965 |
Less allowances for depreciation, depletion, and amortization | (685,355) | (684,689) |
Property, plant, and equipment—net | 239,265 | 232,276 |
Operating lease right-of-use assets | 48,942 | 23,413 |
Intangible assets | 5,732 | 6,380 |
Other assets | 19,169 | 17,937 |
Goodwill | 70,001 | 79,011 |
Total Assets | 1,041,222 | 852,670 |
Current liabilities | ||
Short-term debt | 151,731 | 868 |
Accounts payable | 52,093 | 43,206 |
Salaries and wages | 24,367 | 41,167 |
Other liabilities and accrued items | 33,429 | 32,477 |
Income taxes | 1,779 | 1,342 |
Unearned revenue | 3,003 | 3,380 |
Liabilities held for sale | 2,126 | 0 |
Total current liabilities | 268,528 | 122,440 |
Other long-term liabilities | 10,117 | 11,560 |
Operating lease liabilities | 44,830 | 18,091 |
Finance lease liabilities | 16,939 | 17,424 |
Retirement and post-employment benefits | 32,389 | 32,466 |
Unearned income | 57,799 | 32,891 |
Long-term income taxes | 3,508 | 3,451 |
Deferred income taxes | 2,172 | 2,410 |
Long-term debt | 0 | 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 June 26 and December 31) | 256,756 | 249,674 |
Retained earnings | 588,803 | 589,888 |
Common stock in treasury | (198,726) | (186,845) |
Accumulated other comprehensive loss | (45,571) | (45,462) |
Other equity | 3,678 | 3,422 |
Total shareholders' equity | 604,940 | 610,677 |
Total Liabilities and Shareholders’ Equity | $ 1,041,222 | $ 852,670 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands, $ / shares in Thousands | Jun. 26, 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 ($) | 6 Months Ended | |
Jun. 26, 2020 | Jun. 28, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 3,575,000 | $ 32,446,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, depletion, and amortization | 23,522,000 | 22,607,000 |
Amortization of deferred financing costs in interest expense | 364,000 | 472,000 |
Stock-based compensation expense (non-cash) | 3,966,000 | 3,541,000 |
Deferred income tax expense (benefit) | (234,000) | 4,578,000 |
Net pension curtailments and settlements | 94,000 | 3,296,000 |
Held for sale impairment charges | 10,766,000 | 0 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 5,331,000 | (11,778,000) |
Decrease (increase) in inventory | (20,585,000) | 1,306,000 |
Decrease (increase) in prepaid and other current assets | (7,264,000) | (588,000) |
Increase (decrease) in accounts payable and accrued expenses | (7,634,000) | (18,813,000) |
Increase (decrease) in unearned revenue | (257,000) | (88,000) |
Increase (decrease) in interest and taxes payable | 1,058,000 | (1,130,000) |
Increase (decrease) in unearned income due to customer prepayments | 26,713,000 | 0 |
Domestic pension plan contributions | 0 | (3,000,000) |
Other-net | (2,982,000) | (2,803,000) |
Net cash provided by operating activities | 36,433,000 | 30,046,000 |
Cash flows from investing activities: | ||
Payments for purchase of property, plant, and equipment | (32,034,000) | (13,833,000) |
Payments for mine development | 0 | 1,591,000 |
Proceeds from sale of property, plant, and equipment | 33,000 | 15,000 |
Net cash used in investing activities | (32,001,000) | (15,409,000) |
Cash flows from financing activities: | ||
Short-term debt under revolving credit agreement | 150,000,000 | 0 |
Repayment of long-term debt | (428,000) | (397,000) |
Principal payments under finance lease obligations | 626,000 | 599,000 |
Cash dividends paid | (4,582,000) | (4,368,000) |
Repurchase of common stock | (6,766,000) | (199,000) |
Payments of withholding taxes for stock-based compensation awards | (2,025,000) | (4,763,000) |
Net cash provided by (used in) financing activities | 135,573,000 | (10,326,000) |
Effects of exchange rate changes | 56,000 | (100,000) |
Net change in cash and cash equivalents | 140,061,000 | 4,211,000 |
Cash and cash equivalents at beginning of period | 125,007,000 | 70,645,000 |
Cash and cash equivalents at end of period | $ 265,068,000 | $ 74,856,000 |
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 income | 32,446 | 0 | 32,446 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | 10,960 | 0 | 0 | 0 | 10,960 | 0 | ||
Net pension curtailments and settlements | 3,296 | 0 | 0 | 0 | 3,296 | 0 | ||
Cumulative effect of accounting change | (179) | 0 | (179) | 0 | 0 | 0 | ||
Cash dividends declared | (4,368) | 0 | (4,368) | 0 | 0 | 0 | ||
Stock-based compensation activity (in shares) | 247 | 247 | ||||||
Stock-based compensation activity | 3,541 | 11,046 | (62) | (7,443) | 0 | 0 | ||
Payments of withholding taxes for stock-based compensation awards (in shares) | (87) | (87) | ||||||
Payments of withholding taxes for stock-based compensation awards | (4,763) | 0 | 0 | (4,763) | 0 | 0 | ||
Repurchase of shares (in shares) | (5) | (5) | ||||||
Repurchase of shares | (199) | 0 | 0 | (199) | 0 | 0 | ||
Directors' deferred compensation | 145 | 35 | 0 | 607 | 0 | (497) | ||
Stock Issued During Period Value Directors Deferred Compensation, Shares | 2 | 2 | ||||||
Ending balance (in shares) at Jun. 28, 2019 | 20,399 | |||||||
Ending balances (in Treasury shares) at Jun. 28, 2019 | (6,749) | |||||||
Ending balances at Jun. 28, 2019 | 594,785 | 245,785 | 576,211 | (187,224) | (43,978) | 3,991 | ||
Beginning balance (in shares) at Mar. 29, 2019 | 20,354 | |||||||
Beginning balances (in Treasury shares) at Mar. 29, 2019 | (6,794) | |||||||
Beginning balances at Mar. 29, 2019 | 566,877 | 241,480 | 562,941 | (184,812) | (57,270) | 4,538 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 15,540 | 0 | 15,540 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | 9,996 | 0 | 0 | 0 | 9,996 | 0 | ||
Net pension curtailments and settlements | 3,296 | 0 | 0 | 0 | 3,296 | 0 | ||
Cash dividends declared | (2,243) | 0 | (2,243) | 0 | 0 | 0 | ||
Stock-based compensation activity (in shares) | 55 | 55 | ||||||
Stock-based compensation activity | 1,994 | 4,287 | (27) | (2,266) | 0 | 0 | ||
Payments of withholding taxes for stock-based compensation awards (in shares) | (12) | (12) | ||||||
Payments of withholding taxes for stock-based compensation awards | (785) | 0 | 0 | (785) | 0 | 0 | ||
Directors' deferred compensation | 110 | 18 | 0 | 639 | 0 | (547) | ||
Stock Issued During Period Value Directors Deferred Compensation, Shares | 2 | 2 | ||||||
Ending balance (in shares) at Jun. 28, 2019 | 20,399 | |||||||
Ending balances (in Treasury shares) at Jun. 28, 2019 | (6,749) | |||||||
Ending balances at Jun. 28, 2019 | 594,785 | 245,785 | 576,211 | (187,224) | (43,978) | 3,991 | ||
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 income | 3,575 | 0 | 3,575 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | (109) | 0 | 0 | 0 | (109) | 0 | ||
Net pension curtailments and settlements | 94 | |||||||
Cash dividends declared | (4,582) | 0 | (4,582) | 0 | 0 | 0 | ||
Stock-based compensation activity (in shares) | 110 | 110 | ||||||
Stock-based compensation activity | 4,057 | 7,037 | (78) | (2,902) | 0 | 0 | ||
Payments of withholding taxes for stock-based compensation awards (in shares) | (36) | (36) | ||||||
Payments of withholding taxes for stock-based compensation awards | (2,025) | 0 | 0 | (2,025) | 0 | 0 | ||
Repurchase of shares (in shares) | (158) | (158) | ||||||
Repurchase of shares | (6,766) | 0 | 0 | (6,766) | 0 | 0 | ||
Directors' deferred compensation | 113 | 45 | 0 | (188) | 0 | 256 | ||
Stock Issued During Period Value Directors Deferred Compensation, Shares | 2 | 2 | ||||||
Ending balance (in shares) at Jun. 26, 2020 | 20,322 | |||||||
Ending balances (in Treasury shares) at Jun. 26, 2020 | (6,826) | |||||||
Ending balances at Jun. 26, 2020 | 604,940 | 256,756 | 588,803 | (198,726) | (45,571) | 3,678 | ||
Beginning balance (in shares) at Mar. 27, 2020 | 20,310 | |||||||
Beginning balances (in Treasury shares) at Mar. 27, 2020 | (6,838) | |||||||
Beginning balances at Mar. 27, 2020 | 596,478 | 253,967 | 584,505 | (198,311) | (47,173) | 3,490 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 6,678 | 0 | 6,678 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | 1,602 | 0 | 0 | 0 | 1,602 | 0 | ||
Cash dividends declared | (2,337) | 0 | (2,337) | 0 | 0 | 0 | ||
Stock-based compensation activity (in shares) | 11 | 11 | ||||||
Stock-based compensation activity | 2,473 | 2,775 | (43) | (259) | 0 | 0 | ||
Payments of withholding taxes for stock-based compensation awards (in shares) | 0 | 0 | ||||||
Payments of withholding taxes for stock-based compensation awards | (10) | 0 | 0 | (10) | 0 | 0 | ||
Directors' deferred compensation | 56 | 14 | 0 | (146) | 0 | 188 | ||
Stock Issued During Period Value Directors Deferred Compensation, Shares | 1 | 1 | ||||||
Ending balance (in shares) at Jun. 26, 2020 | 20,322 | |||||||
Ending balances (in Treasury shares) at Jun. 26, 2020 | (6,826) | |||||||
Ending balances at Jun. 26, 2020 | $ 604,940 | $ 256,756 | $ 588,803 | $ (198,726) | $ (45,571) | $ 3,678 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (per share) | $ 0.115 | $ 0.110 | $ 0.225 | $ 0.215 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 26, 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 Financial Accounting Standards Board (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. Accounts receivable were net of an allowance for credit losses of $0.7 million and $0.4 million at June 26, 2020 and December 31, 2019, respectively. The change in the allowance for credit losses includes expense and net write-offs, none of which is significant. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 26, 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 Advanced Materials Precision Coatings Other Total Second Quarter 2020 Net sales $ 101,614 $ 150,108 $ 19,746 $ — $ 271,468 Intersegment sales (213) 8,997 — — 8,784 Operating profit (loss) 8,244 4,370 2,091 (5,999) 8,706 Second Quarter 2019 Net sales $ 135,231 $ 133,238 $ 29,374 $ — $ 297,843 Intersegment sales 6 19,260 — — 19,266 Operating profit (loss) 19,328 6,139 3,937 (6,654) 22,750 First Six Months 2020 Net sales $ 200,681 $ 310,273 $ 38,460 $ — $ 549,414 Intersegment sales 2 18,188 — — 18,190 Operating profit (loss) 13,035 9,155 (7,501) (10,546) 4,143 First Six Months 2019 Net sales $ 262,344 $ 277,263 $ 59,677 $ — $ 599,284 Intersegment sales 15 36,473 — — 36,488 Operating profit (loss) 38,286 13,219 6,014 (13,382) 44,137 The following table disaggregates revenue for each segment by end market for the second quarter and first six months of 2020 and 2019, respectively: (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total Second Quarter 2020 End Market Semiconductor $ 1,537 $ 123,908 $ 232 $ — $ 125,677 Industrial 23,831 8,419 2,574 — 34,824 Aerospace and Defense 17,952 1,650 4,119 — 23,721 Consumer Electronics 9,956 21 3,404 — 13,381 Automotive 16,415 1,186 7 — 17,608 Energy 5,590 9,327 — — 14,917 Telecom and Data Center 12,586 788 — — 13,374 Other 13,747 4,809 9,410 — 27,966 Total $ 101,614 $ 150,108 $ 19,746 $ — $ 271,468 Second Quarter 2019 End Market Semiconductor $ 1,303 $ 101,634 $ 93 $ — $ 103,030 Industrial 28,585 7,704 3,842 — 40,131 Aerospace and Defense 26,046 1,125 4,750 — 31,921 Consumer Electronics 22,663 500 4,430 — 27,593 Automotive 16,564 1,669 365 — 18,598 Energy 11,303 16,027 — — 27,330 Telecom and Data Center 18,244 713 — — 18,957 Other 10,523 3,866 15,894 — 30,283 Total $ 135,231 $ 133,238 $ 29,374 $ — $ 297,843 (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total First Six Months 2020 End Market Semiconductor $ 2,443 $ 244,727 $ 243 $ — $ 247,413 Industrial 47,171 16,781 5,671 — 69,623 Aerospace and Defense 32,158 3,077 9,228 — 44,463 Consumer Electronics 24,651 138 6,946 — 31,735 Automotive 34,579 3,266 24 — 37,869 Energy 11,019 32,795 — — 43,814 Telecom and Data Center 22,575 1,658 — — 24,233 Other 26,085 7,831 16,348 — 50,264 Total $ 200,681 $ 310,273 $ 38,460 $ — $ 549,414 First Six Months 2019 End Market Semiconductor $ 3,268 $ 206,725 $ 205 $ — $ 210,198 Industrial 55,015 15,632 7,992 — 78,639 Aerospace and Defense 53,120 2,618 9,622 — 65,360 Consumer Electronics 36,218 705 7,916 — 44,839 Automotive 37,277 3,023 587 — 40,887 Energy 22,397 38,224 — — 60,621 Telecom and Data Center 35,836 914 — — 36,750 Other 19,213 9,422 33,355 — 61,990 Total $ 262,344 $ 277,263 $ 59,677 $ — $ 599,284 Intersegment sales are eliminated in consolidation. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 26, 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 June 26, 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 June 26, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $29.2 million. Contract Balances : The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities: (Thousands) June 26, 2020 December 31, 2019 $ change % change Accounts receivable, trade $ 141,465 $ 141,168 $ 297 — % Unbilled receivables 5,218 13,583 (8,365) (62) % Unearned revenue 3,003 3,380 (377) (11) % 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 second quarter and first six months 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 $3.1 million of the unearned amounts as revenue during the first six months 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 | 6 Months Ended |
Jun. 26, 2020 | |
Other Income and Expenses [Abstract] | |
Other-net | Other-net Other-net for the second quarter and first six months of 2020 and 2019 is summarized as follows: Second Quarter Ended Six Months Ended June 26, June 28, June 26, June 28, (Thousands) 2020 2019 2020 2019 Metal consignment fees $ 2,037 $ 2,225 $ 4,266 $ 5,316 Amortization of intangible assets 106 368 294 758 Foreign currency (gain) loss (2,486) 307 (2,548) 384 Net loss on disposal of fixed assets 9 118 55 142 Other items (23) (127) (145) 412 Total $ (357) $ 2,891 $ 1,922 $ 7,012 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 26, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring In the first half 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 $2.4 million and $4.6 million in the second quarter and first six months of 2020, respectively. In the second quarter of 2020, these costs included $0.9 million of severance associated with approximately 60 employees and $1.5 million of facility and other related costs. Included in restructuring charges for the first six months of 2020 was $1.4 million of severance associated with approximately 60 employees and $3.1 million of facility and other related costs. Remaining severance payments of $1.2 million and facility costs of $0.4 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 $4 million in the remainder of 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the second quarter of 2020 and 2019 was 19.5% and 18.8%, respectively, and 19.4% and 18.5% for the first six months of 2020 and 2019, 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. Additionally, the effective tax rate for the first six months of 2020 included a net discrete income tax expense of $0.8 million, primarily related to an impairment of goodwill. The effective tax rate for the first six months of 2019 included a net discrete income tax benefit of $0.5 million, primarily related to excess tax benefits from stock-based compensation awards. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. 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. On July 9, 2020, the U.S. Treasury Department issued final tax regulations related to the foreign-derived intangible income and global intangible low-taxed income (GILTI) provisions. Also, on July 20, 2020 the U.S. Treasury Department released final tax regulations permitting a taxpayer to elect to exclude from its GILTI inclusion items of income subject to a high effective rate of foreign tax. The Company is currently assessing the impact of the new legislation to its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 26, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (EPS) The following table sets forth the computation of basic and diluted EPS: Second Quarter Ended Six Months Ended June 26, June 28, June 26, June 28, (Thousands, except per share amounts) 2020 2019 2020 2019 Numerator for basic and diluted EPS: Net income $ 6,678 $ 15,540 $ 3,575 $ 32,446 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,317 20,383 20,350 20,326 Effect of dilutive securities: Stock appreciation rights 36 76 36 92 Restricted stock units 63 76 80 77 Performance-based restricted stock units 138 131 121 140 Diluted potential common shares 237 283 237 309 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,554 20,666 20,587 20,635 Basic EPS $ 0.33 $ 0.76 $ 0.18 $ 1.60 Diluted EPS $ 0.32 $ 0.75 $ 0.17 $ 1.57 Adjusted weighted-average shares outstanding-diluted excludes securities totaling 191,500 and 84,509 for the quarters ended June 26, 2020 and June 28, 2019, respectively, and 230,893 and 144,154 for the six months ended June 26, 2020 and June 28, 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 | 6 Months Ended |
Jun. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories on the Consolidated Balance Sheets are summarized as follows: June 26, December 31, (Thousands) 2020 2019 Raw materials and supplies $ 54,720 $ 35,612 Work in process 172,678 177,780 Finished goods 30,304 25,506 Subtotal $ 257,702 $ 238,898 Less: LIFO reserve balance 47,855 48,508 Inventories $ 209,847 $ 190,390 The liquidation of last in, first out (LIFO) inventory layers increased cost of sales by $0.1 million in the second quarter and first six months of both 2020 and 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 $333.9 million as of June 26, 2020 versus $309.3 million as of December 31, 2019. |
Held for Sale
Held for Sale | 6 Months Ended |
Jun. 26, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Held for Sale In the first six months of 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 June 26, 2020. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. 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. The Company recorded a goodwill impairment charge of $9.1 million in the first half of 2020 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 a $1.7 million asset impairment loss in the first six months of 2020. No additional impairment charges were recorded in the second quarter of 2020. The assets and liabilities of the LAC reporting unit classified as held for sale at June 26, 2020 were as follows: (Thousands) Accounts receivable, net $ 2,987 Inventories, net 1,305 Prepaid and other current assets 8 Property, plant, and equipment - net 2,508 Operating lease, right-of-use assets 716 Impairment on carrying value (1,713) Assets held for sale $ 5,811 Accounts payable $ 870 Salaries and wages 245 Other liabilities and accrued items 228 Operating lease liabilities 728 Other long term liabilities 55 Liabilities held for sale $ 2,126 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 26, 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 — 43 — 43 Balance at June 26, 2020 $ 1,899 $ 50,233 $ 17,869 $ 70,001 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. |
Customer Prepayments
Customer Prepayments | 6 Months Ended |
Jun. 26, 2020 | |
Customer Prepayments [Abstract] | |
Customer Prepayments Investment Agreement [Text Block] | Customer Prepayments The Company entered into an investment agreement with a customer to procure equipment to manufacture product for the customer. The customer will make prepayments to the Company in the amount of approximately $70 million in the aggregate to enable the Company to purchase and install certain equipment and make necessary infrastructure improvements to supply product to the customer. The Company will own the equipment and be responsible for operating and maintenance costs. The prepayment from the customer will be applied when commercial production of the product is sold and delivered to the customer in connection with a master supply agreement. Accordingly, $31.4 million of prepayments are classified as Unearned Income in the Consolidated Balance Sheet, of which $19.6 million were received during the second quarter of 2020, and the liability is expected to be settled as commercial shipments are made. |
Leases
Leases | 6 Months Ended |
Jun. 26, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Leases The Company leases warehouse and manufacturing real estate, and manufacturing and computer equipment under operating leases with lease terms ranging up to 25 years. Several operating lease agreements contain options to extend the lease term and/or options for early termination. The lease term consists of the non-cancelable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. The weighted average remaining lease term for the Company's operating and finance leases as of June 26, 2020 was 13.57 years and 19.37 years, respectively. The discount rate implicit within the leases is generally not determinable, and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for leases is determined based on the lease term in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure the Company's operating and finance lease liabilities as of June 26, 2020 was 6.41% and 5.31%, respectively. The components of operating and finance lease cost for the second quarter and first six months of 2020 and 2019 were as follows: Second Quarter Ended Six Months Ended (Thousands) June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Components of lease expense Operating lease cost $ 2,274 $ 2,291 $ 4,532 $ 5,003 Finance lease cost Amortization of right-of-use assets 350 354 701 710 Interest on lease liabilities 238 259 482 522 Total lease cost $ 2,862 $ 2,904 $ 5,715 $ 6,235 Operating lease expense amounted to $2.3 million and $4.5 million during the second quarter and first six months of 2020, respectively, compared to $2.3 million and $5.0 million, respectively, during the same periods of 2019. The Company straight-lines its expense of fixed payments for operating leases over the lease term and expenses the variable lease payments in the period incurred. These variable lease payments are not included in the calculation of right-of-use assets or lease liabilities. Supplemental balance sheet information related to the Company's operating and finance leases as of June 26, 2020 and December 31, 2019 was as follows: June 26, Dec. 31, (Thousands) 2020 2019 Supplemental balance sheet information Operating Leases Operating lease right-of-use assets $ 48,942 $ 23,413 Other liabilities and accrued items 5,298 6,542 Operating lease liabilities 44,830 18,091 Finance Leases Property, plant, and equipment $ 26,258 $ 26,069 Allowances for depreciation, depletion, and amortization (4,035) (3,570) Finance lease assets, net $ 22,223 $ 22,499 Other liabilities and accrued items $ 1,305 $ 1,265 Finance lease liabilities 16,939 17,424 Total principal payable on finance leases $ 18,244 $ 18,689 Future maturities of the Company's lease liabilities as of June 26, 2020 are as follows: Finance Operating (Thousands) Leases Leases 2020 $ 1,119 $ 3,986 2021 2,238 7,841 2022 2,238 6,846 2023 1,528 6,548 2024 1,174 4,704 2025 and thereafter 21,126 46,967 Total lease payments 29,423 76,892 Less amount of lease payment representing interest 11,179 26,764 Total present value of lease payments $ 18,244 $ 50,128 Supplemental cash flow information related to leases for the first six months of 2020 and 2019 were as follows: Six Months Ended (Thousands) June 26, 2020 June 28, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,275 $ 7,710 Operating cash flows from finance leases 482 522 Financing cash flows from finance leases 626 599 |
Pensions and Other Post-employm
Pensions and Other Post-employment Benefits | 6 Months Ended |
Jun. 26, 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 second quarter and first six months 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 Second Quarter Ended Second Quarter Ended June 26, June 28, June 26, June 28, (Thousands) 2020 2019 2020 2019 Components of net periodic benefit cost (credit) Service cost $ — $ 1,418 $ 15 $ 18 Interest cost 1,215 1,347 53 99 Expected return on plan assets (2,205) (2,167) — — Amortization of prior service cost (benefit) — 122 (374) (375) Amortization of net loss (gain) 284 627 (83) (23) Net periodic benefit (credit) cost $ (706) $ 1,347 $ (389) $ (281) Net pension settlements/curtailments 94 3,296 — — Total net benefit cost $ (612) $ 4,643 $ (389) $ (281) Pension Benefits Other Benefits Six Months Ended Six Months Ended June 26, June 28, June 26, June 28, (Thousands) 2020 2019 2020 2019 Components of net periodic benefit cost (credit) Service cost $ — $ 2,758 $ 31 $ 35 Interest cost 2,429 2,904 107 199 Expected return on plan assets (4,410) (4,290) — — Amortization of prior service cost (benefit) — 242 (749) (749) Amortization of net loss (gain) 568 1,431 (166) (46) Net periodic benefit (credit) cost $ (1,413) $ 3,045 $ (777) $ (561) Net pension settlements/curtailments 94 3,296 — — Total net benefit cost $ (1,319) $ 6,341 $ (777) $ (561) The Company did not make any contributions to its domestic defined benefit plan in the first six months of 2020 and made contributions of $3.0 million in the first six months 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 | 6 Months Ended |
Jun. 26, 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 second quarter and first six months 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 March 27, 2020 $ 1,214 $ (841) $ (330) $ 43 $ (41,330) $ (5,886) $ (47,173) Other comprehensive (loss) income before reclassifications (201) (411) 426 (186) — 1,166 980 Amounts reclassified from accumulated other comprehensive income 8 491 132 631 70 — 701 Net current period other comprehensive income (loss) before tax (193) 80 558 445 70 1,166 1,681 Deferred taxes (44) 18 124 98 (19) — 79 Net current period other comprehensive income (loss) after tax (149) 62 434 347 89 1,166 1,602 Balance at June 26, 2020 $ 1,065 $ (779) $ 104 $ 390 $ (41,241) $ (4,720) $ (45,571) Balance at March 29, 2019 $ 1,663 $ (24) $ 189 $ 1,828 $ (54,003) $ (5,095) $ (57,270) Other comprehensive income (loss) before reclassifications (269) (563) (580) (1,412) 14,224 339 13,151 Amounts reclassified from accumulated other comprehensive income (46) (1) 163 116 3,781 — 3,897 Net current period other comprehensive income (loss) before tax (315) (564) (417) (1,296) 18,005 339 17,048 Deferred taxes (72) (130) (94) (296) 4,052 — 3,756 Net current period other comprehensive income (loss) after tax (243) (434) (323) (1,000) 13,953 339 13,292 Balance at June 28, 2019 $ 1,420 $ (458) $ (134) $ 828 $ (40,050) $ (4,756) $ (43,978) 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 (343) (1,234) (352) (1,929) — 293 (1,636) Amounts reclassified from accumulated other comprehensive income 7 809 453 1,269 46 — 1,315 Net current period other comprehensive income (loss) before tax (336) (425) 101 (660) 46 293 (321) Deferred taxes (77) (98) 22 (153) (59) — (212) Net current period other comprehensive income (loss) after tax (259) (327) 79 (507) 105 293 (109) Balance at June 26, 2020 $ 1,065 $ (779) $ 104 $ 390 $ (41,241) $ (4,720) $ (45,571) Balance at December 31, 2018 $ 1,263 $ 79 $ (441) $ 901 $ (54,543) $ (4,592) $ (58,234) Other comprehensive (loss) income before reclassifications 248 (636) 304 (84) 14,224 (164) 13,976 Amounts reclassified from accumulated other comprehensive income (44) (62) 92 (14) 4,441 — 4,427 Net current period other comprehensive income (loss) before tax 204 (698) 396 (98) 18,665 (164) 18,403 Deferred taxes 47 (161) 89 (25) 4,172 — 4,147 Net current period other comprehensive income (loss) after tax 157 (537) 307 (73) 14,493 (164) 14,256 Balance at June 28, 2019 $ 1,420 $ (458) $ (134) $ 828 $ (40,050) $ (4,756) $ (43,978) 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 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 Income. Refer to Note Q for additional details on cash flow hedges. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 6 Months Ended |
Jun. 26, 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 $3.1 million and $4.1 million in the second quarter and first six months of 2020, respectively, compared to $3.5 million and $6.2 million, respectively, in the same periods of 2019. The Company granted 64,636 stock appreciation rights (SARs) to certain employees during the first six months of 2020. The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the six months ended June 26, 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 62,841 stock-settled restricted stock units (RSUs) to certain employees and 15,976 to non-employee directors during the first six 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 $49.34 and $48.42 for stock-settled RSUs granted to employees and non-employee directors, respectively, during the six months ended June 26, 2020. RSUs are expensed over the vesting period of three years for employees and one year for non-employee directors. The Company granted stock-settled performance-based restricted stock units (PRSUs) to certain employees in the first six 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 26, 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 June 26, 2020 and December 31, 2019: (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices Significant Significant 2020 2019 2020 2019 2020 2019 2020 2019 Financial Assets Deferred compensation investments $ 2,625 $ 3,391 $ 2,625 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 2,220 188 — — 2,220 188 — — Precious metal swaps — 35 — — — 35 — — Copper swaps 137 61 — — 137 61 — — Total $ 4,982 $ 3,675 $ 2,625 $ 3,391 $ 2,357 $ 284 $ — $ — Financial Liabilities Deferred compensation liability $ 2,625 $ 3,391 $ 2,625 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 523 211 — — 523 211 — — Precious metal swaps 1,013 623 — — 1,013 623 — — Copper swaps 3 28 — — 3 28 — — Total $ 4,164 $ 4,253 $ 2,625 $ 3,391 $ 1,539 $ 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 June 26, 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 | 6 Months Ended |
Jun. 26, 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 June 26, 2020 and December 31, 2019: June 26, 2020 December 31, 2019 (Thousands) Notional Fair Notional Fair Foreign currency forward contracts Prepaid expenses $ 152,803 $ 2,198 $ 13,734 $ 95 Other liabilities and accrued items 9,786 63 5,757 16 These outstanding foreign currency derivatives were related to balance sheet hedges, intercompany loans, and a foreign currency hedge for the purchase of Optics Balzers AG (Optics Balzers), which the Company agreed to buy in June 2020. See Note T for additional information. Other-net included $1.7 million and $2.3 million of foreign currency gains relating to these derivatives during the second quarter and first six months of 2020, respectively. 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 June 26, 2020 and December 31, 2019: June 26, 2020 December 31, 2019 (Thousands) Notional Fair Notional Fair Prepaid expenses Foreign currency forward contracts - yen $ — $ — $ 1,025 $ 10 Foreign currency forward contracts - euro 5,084 22 3,466 83 Precious metal swaps — — 1,116 34 Copper swaps 2,235 137 1,951 61 Total 7,319 159 7,558 188 Other assets Precious metal swaps — — 157 1 Other liabilities and accrued items Foreign currency forward contracts - yen 2,031 25 2,355 12 Foreign currency forward contracts - euro 11,974 420 15,686 183 Precious metal swaps 5,910 1,004 7,034 618 Copper swaps 293 3 1,266 28 Total 20,208 1,452 26,341 841 Other long-term liabilities Foreign currency forward contracts - yen 112 1 — — Foreign currency forward contracts - euro 553 14 — — Precious metal swaps 172 9 149 5 Total 837 24 149 5 Total $ 28,364 $ 1,317 $ 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 June 26, 2020 to the Consolidated Statements of Income within the next 15-month period. Refer to Note N 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 second quarter and first six months of 2020 and 2019: Second Quarter Ended Second Quarter Ended (Thousands) June 26, 2020 June 28, 2019 Hedging relationship Line item Foreign currency forward contracts Net sales $ 8 $ (46) Precious metal swaps Cost of sales 491 (1) Copper swaps Cost of sales 132 163 Total $ 631 $ 116 Six Months Ended Six Months Ended (Thousands) June 26, 2020 June 28, 2019 Hedging relationship Line item Foreign currency forward contracts Net sales $ 7 $ (44) Precious metal swaps Cost of sales 809 (62) Copper swaps Cost of sales 453 92 Total $ 1,269 $ (14) |
Contingencies
Contingencies | 6 Months Ended |
Jun. 26, 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. Two beryllium cases were outstanding as of June 26, 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 $6.0 million and $5.9 million at June 26, 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. |
Debt
Debt | 6 Months Ended |
Jun. 26, 2020 | |
Debt Disclosure [Abstract] | |
Short-term Debt | Debt In the second quarter of 2020, the Company borrowed $150.0 million under its revolving credit facility, and the remaining borrowing capacity as of June 26, 2020 was $179.1 million. The Company has the option to repay or borrow additional funds under the revolving credit facility until the maturity date in 2024. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event In July 2020, the Company completed the acquisition of Optics Balzers, an industry leader in thin film optical coatings, with a final transaction value of approximately $160 million, including the assumption of debt. The transaction was funded with cash on hand, including a portion of the $150.0 million borrowed under our revolving credit facility in the second quarter of 2020. |
Basis of Accounting (Policies)
Basis of Accounting (Policies) | 6 Months Ended |
Jun. 26, 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. |
New Pronouncements (Policies)
New Pronouncements (Policies) | 6 Months Ended |
Jun. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Pronouncements Adopted: In June 2016, the Financial Accounting Standards Board (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. Accounts receivable were net of an allowance for credit losses of $0.7 million and $0.4 million at June 26, 2020 and December 31, 2019, respectively. The change in the allowance for credit losses includes expense and net write-offs, none of which is significant. |
Revenue Recognition Accounting
Revenue Recognition Accounting Policy (Policies) | 6 Months Ended |
Jun. 26, 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) | 6 Months Ended |
Jun. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (Thousands) Performance Advanced Materials Precision Coatings Other Total Second Quarter 2020 Net sales $ 101,614 $ 150,108 $ 19,746 $ — $ 271,468 Intersegment sales (213) 8,997 — — 8,784 Operating profit (loss) 8,244 4,370 2,091 (5,999) 8,706 Second Quarter 2019 Net sales $ 135,231 $ 133,238 $ 29,374 $ — $ 297,843 Intersegment sales 6 19,260 — — 19,266 Operating profit (loss) 19,328 6,139 3,937 (6,654) 22,750 First Six Months 2020 Net sales $ 200,681 $ 310,273 $ 38,460 $ — $ 549,414 Intersegment sales 2 18,188 — — 18,190 Operating profit (loss) 13,035 9,155 (7,501) (10,546) 4,143 First Six Months 2019 Net sales $ 262,344 $ 277,263 $ 59,677 $ — $ 599,284 Intersegment sales 15 36,473 — — 36,488 Operating profit (loss) 38,286 13,219 6,014 (13,382) 44,137 |
Disaggregation of Revenue | The following table disaggregates revenue for each segment by end market for the second quarter and first six months of 2020 and 2019, respectively: (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total Second Quarter 2020 End Market Semiconductor $ 1,537 $ 123,908 $ 232 $ — $ 125,677 Industrial 23,831 8,419 2,574 — 34,824 Aerospace and Defense 17,952 1,650 4,119 — 23,721 Consumer Electronics 9,956 21 3,404 — 13,381 Automotive 16,415 1,186 7 — 17,608 Energy 5,590 9,327 — — 14,917 Telecom and Data Center 12,586 788 — — 13,374 Other 13,747 4,809 9,410 — 27,966 Total $ 101,614 $ 150,108 $ 19,746 $ — $ 271,468 Second Quarter 2019 End Market Semiconductor $ 1,303 $ 101,634 $ 93 $ — $ 103,030 Industrial 28,585 7,704 3,842 — 40,131 Aerospace and Defense 26,046 1,125 4,750 — 31,921 Consumer Electronics 22,663 500 4,430 — 27,593 Automotive 16,564 1,669 365 — 18,598 Energy 11,303 16,027 — — 27,330 Telecom and Data Center 18,244 713 — — 18,957 Other 10,523 3,866 15,894 — 30,283 Total $ 135,231 $ 133,238 $ 29,374 $ — $ 297,843 (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total First Six Months 2020 End Market Semiconductor $ 2,443 $ 244,727 $ 243 $ — $ 247,413 Industrial 47,171 16,781 5,671 — 69,623 Aerospace and Defense 32,158 3,077 9,228 — 44,463 Consumer Electronics 24,651 138 6,946 — 31,735 Automotive 34,579 3,266 24 — 37,869 Energy 11,019 32,795 — — 43,814 Telecom and Data Center 22,575 1,658 — — 24,233 Other 26,085 7,831 16,348 — 50,264 Total $ 200,681 $ 310,273 $ 38,460 $ — $ 549,414 First Six Months 2019 End Market Semiconductor $ 3,268 $ 206,725 $ 205 $ — $ 210,198 Industrial 55,015 15,632 7,992 — 78,639 Aerospace and Defense 53,120 2,618 9,622 — 65,360 Consumer Electronics 36,218 705 7,916 — 44,839 Automotive 37,277 3,023 587 — 40,887 Energy 22,397 38,224 — — 60,621 Telecom and Data Center 35,836 914 — — 36,750 Other 19,213 9,422 33,355 — 61,990 Total $ 262,344 $ 277,263 $ 59,677 $ — $ 599,284 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 26, 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) June 26, 2020 December 31, 2019 $ change % change Accounts receivable, trade $ 141,465 $ 141,168 $ 297 — % Unbilled receivables 5,218 13,583 (8,365) (62) % Unearned revenue 3,003 3,380 (377) (11) % |
Other-net (Tables)
Other-net (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Other Income and Expenses [Abstract] | |
Summary of Other-Net Expense | Other-net for the second quarter and first six months of 2020 and 2019 is summarized as follows: Second Quarter Ended Six Months Ended June 26, June 28, June 26, June 28, (Thousands) 2020 2019 2020 2019 Metal consignment fees $ 2,037 $ 2,225 $ 4,266 $ 5,316 Amortization of intangible assets 106 368 294 758 Foreign currency (gain) loss (2,486) 307 (2,548) 384 Net loss on disposal of fixed assets 9 118 55 142 Other items (23) (127) (145) 412 Total $ (357) $ 2,891 $ 1,922 $ 7,012 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted EPS: Second Quarter Ended Six Months Ended June 26, June 28, June 26, June 28, (Thousands, except per share amounts) 2020 2019 2020 2019 Numerator for basic and diluted EPS: Net income $ 6,678 $ 15,540 $ 3,575 $ 32,446 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,317 20,383 20,350 20,326 Effect of dilutive securities: Stock appreciation rights 36 76 36 92 Restricted stock units 63 76 80 77 Performance-based restricted stock units 138 131 121 140 Diluted potential common shares 237 283 237 309 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,554 20,666 20,587 20,635 Basic EPS $ 0.33 $ 0.76 $ 0.18 $ 1.60 Diluted EPS $ 0.32 $ 0.75 $ 0.17 $ 1.57 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories on the Consolidated Balance Sheets are summarized as follows: June 26, December 31, (Thousands) 2020 2019 Raw materials and supplies $ 54,720 $ 35,612 Work in process 172,678 177,780 Finished goods 30,304 25,506 Subtotal $ 257,702 $ 238,898 Less: LIFO reserve balance 47,855 48,508 Inventories $ 209,847 $ 190,390 |
Held for Sale (Tables)
Held for Sale (Tables) | 6 Months Ended |
Jun. 26, 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 June 26, 2020 were as follows: (Thousands) Accounts receivable, net $ 2,987 Inventories, net 1,305 Prepaid and other current assets 8 Property, plant, and equipment - net 2,508 Operating lease, right-of-use assets 716 Impairment on carrying value (1,713) Assets held for sale $ 5,811 Accounts payable $ 870 Salaries and wages 245 Other liabilities and accrued items 228 Operating lease liabilities 728 Other long term liabilities 55 Liabilities held for sale $ 2,126 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 26, 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 — 43 — 43 Balance at June 26, 2020 $ 1,899 $ 50,233 $ 17,869 $ 70,001 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of operating and finance lease cost for the second quarter and first six months of 2020 and 2019 were as follows: Second Quarter Ended Six Months Ended (Thousands) June 26, 2020 June 28, 2019 June 26, 2020 June 28, 2019 Components of lease expense Operating lease cost $ 2,274 $ 2,291 $ 4,532 $ 5,003 Finance lease cost Amortization of right-of-use assets 350 354 701 710 Interest on lease liabilities 238 259 482 522 Total lease cost $ 2,862 $ 2,904 $ 5,715 $ 6,235 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to the Company's operating and finance leases as of June 26, 2020 and December 31, 2019 was as follows: June 26, Dec. 31, (Thousands) 2020 2019 Supplemental balance sheet information Operating Leases Operating lease right-of-use assets $ 48,942 $ 23,413 Other liabilities and accrued items 5,298 6,542 Operating lease liabilities 44,830 18,091 Finance Leases Property, plant, and equipment $ 26,258 $ 26,069 Allowances for depreciation, depletion, and amortization (4,035) (3,570) Finance lease assets, net $ 22,223 $ 22,499 Other liabilities and accrued items $ 1,305 $ 1,265 Finance lease liabilities 16,939 17,424 Total principal payable on finance leases $ 18,244 $ 18,689 |
Schedule Of Future Minimum Lease Payments For Finance Leases And Operating Leases | Future maturities of the Company's lease liabilities as of June 26, 2020 are as follows: Finance Operating (Thousands) Leases Leases 2020 $ 1,119 $ 3,986 2021 2,238 7,841 2022 2,238 6,846 2023 1,528 6,548 2024 1,174 4,704 2025 and thereafter 21,126 46,967 Total lease payments 29,423 76,892 Less amount of lease payment representing interest 11,179 26,764 Total present value of lease payments $ 18,244 $ 50,128 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases for the first six months of 2020 and 2019 were as follows: Six Months Ended (Thousands) June 26, 2020 June 28, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,275 $ 7,710 Operating cash flows from finance leases 482 522 Financing cash flows from finance leases 626 599 |
Pensions and Other Post-emplo_2
Pensions and Other Post-employment Benefits (Tables) | 6 Months Ended |
Jun. 26, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following is a summary of the net periodic benefit cost for the second quarter and first six months 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 Second Quarter Ended Second Quarter Ended June 26, June 28, June 26, June 28, (Thousands) 2020 2019 2020 2019 Components of net periodic benefit cost (credit) Service cost $ — $ 1,418 $ 15 $ 18 Interest cost 1,215 1,347 53 99 Expected return on plan assets (2,205) (2,167) — — Amortization of prior service cost (benefit) — 122 (374) (375) Amortization of net loss (gain) 284 627 (83) (23) Net periodic benefit (credit) cost $ (706) $ 1,347 $ (389) $ (281) Net pension settlements/curtailments 94 3,296 — — Total net benefit cost $ (612) $ 4,643 $ (389) $ (281) Pension Benefits Other Benefits Six Months Ended Six Months Ended June 26, June 28, June 26, June 28, (Thousands) 2020 2019 2020 2019 Components of net periodic benefit cost (credit) Service cost $ — $ 2,758 $ 31 $ 35 Interest cost 2,429 2,904 107 199 Expected return on plan assets (4,410) (4,290) — — Amortization of prior service cost (benefit) — 242 (749) (749) Amortization of net loss (gain) 568 1,431 (166) (46) Net periodic benefit (credit) cost $ (1,413) $ 3,045 $ (777) $ (561) Net pension settlements/curtailments 94 3,296 — — Total net benefit cost $ (1,319) $ 6,341 $ (777) $ (561) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 26, 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 second quarter and first six months 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 March 27, 2020 $ 1,214 $ (841) $ (330) $ 43 $ (41,330) $ (5,886) $ (47,173) Other comprehensive (loss) income before reclassifications (201) (411) 426 (186) — 1,166 980 Amounts reclassified from accumulated other comprehensive income 8 491 132 631 70 — 701 Net current period other comprehensive income (loss) before tax (193) 80 558 445 70 1,166 1,681 Deferred taxes (44) 18 124 98 (19) — 79 Net current period other comprehensive income (loss) after tax (149) 62 434 347 89 1,166 1,602 Balance at June 26, 2020 $ 1,065 $ (779) $ 104 $ 390 $ (41,241) $ (4,720) $ (45,571) Balance at March 29, 2019 $ 1,663 $ (24) $ 189 $ 1,828 $ (54,003) $ (5,095) $ (57,270) Other comprehensive income (loss) before reclassifications (269) (563) (580) (1,412) 14,224 339 13,151 Amounts reclassified from accumulated other comprehensive income (46) (1) 163 116 3,781 — 3,897 Net current period other comprehensive income (loss) before tax (315) (564) (417) (1,296) 18,005 339 17,048 Deferred taxes (72) (130) (94) (296) 4,052 — 3,756 Net current period other comprehensive income (loss) after tax (243) (434) (323) (1,000) 13,953 339 13,292 Balance at June 28, 2019 $ 1,420 $ (458) $ (134) $ 828 $ (40,050) $ (4,756) $ (43,978) 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 (343) (1,234) (352) (1,929) — 293 (1,636) Amounts reclassified from accumulated other comprehensive income 7 809 453 1,269 46 — 1,315 Net current period other comprehensive income (loss) before tax (336) (425) 101 (660) 46 293 (321) Deferred taxes (77) (98) 22 (153) (59) — (212) Net current period other comprehensive income (loss) after tax (259) (327) 79 (507) 105 293 (109) Balance at June 26, 2020 $ 1,065 $ (779) $ 104 $ 390 $ (41,241) $ (4,720) $ (45,571) Balance at December 31, 2018 $ 1,263 $ 79 $ (441) $ 901 $ (54,543) $ (4,592) $ (58,234) Other comprehensive (loss) income before reclassifications 248 (636) 304 (84) 14,224 (164) 13,976 Amounts reclassified from accumulated other comprehensive income (44) (62) 92 (14) 4,441 — 4,427 Net current period other comprehensive income (loss) before tax 204 (698) 396 (98) 18,665 (164) 18,403 Deferred taxes 47 (161) 89 (25) 4,172 — 4,147 Net current period other comprehensive income (loss) after tax 157 (537) 307 (73) 14,493 (164) 14,256 Balance at June 28, 2019 $ 1,420 $ (458) $ (134) $ 828 $ (40,050) $ (4,756) $ (43,978) |
Stock-based Compensation Expe_2
Stock-based Compensation Expense Tables (Tables) | 6 Months Ended |
Jun. 26, 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) | 6 Months Ended |
Jun. 26, 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 June 26, 2020 and December 31, 2019: (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices Significant Significant 2020 2019 2020 2019 2020 2019 2020 2019 Financial Assets Deferred compensation investments $ 2,625 $ 3,391 $ 2,625 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 2,220 188 — — 2,220 188 — — Precious metal swaps — 35 — — — 35 — — Copper swaps 137 61 — — 137 61 — — Total $ 4,982 $ 3,675 $ 2,625 $ 3,391 $ 2,357 $ 284 $ — $ — Financial Liabilities Deferred compensation liability $ 2,625 $ 3,391 $ 2,625 $ 3,391 $ — $ — $ — $ — Foreign currency forward contracts 523 211 — — 523 211 — — Precious metal swaps 1,013 623 — — 1,013 623 — — Copper swaps 3 28 — — 3 28 — — Total $ 4,164 $ 4,253 $ 2,625 $ 3,391 $ 1,539 $ 862 $ — $ — |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity Tables (Tables) | 6 Months Ended |
Jun. 26, 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 June 26, 2020 and December 31, 2019: June 26, 2020 December 31, 2019 (Thousands) Notional Fair Notional Fair Foreign currency forward contracts Prepaid expenses $ 152,803 $ 2,198 $ 13,734 $ 95 Other liabilities and accrued items 9,786 63 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 June 26, 2020 and December 31, 2019: June 26, 2020 December 31, 2019 (Thousands) Notional Fair Notional Fair Prepaid expenses Foreign currency forward contracts - yen $ — $ — $ 1,025 $ 10 Foreign currency forward contracts - euro 5,084 22 3,466 83 Precious metal swaps — — 1,116 34 Copper swaps 2,235 137 1,951 61 Total 7,319 159 7,558 188 Other assets Precious metal swaps — — 157 1 Other liabilities and accrued items Foreign currency forward contracts - yen 2,031 25 2,355 12 Foreign currency forward contracts - euro 11,974 420 15,686 183 Precious metal swaps 5,910 1,004 7,034 618 Copper swaps 293 3 1,266 28 Total 20,208 1,452 26,341 841 Other long-term liabilities Foreign currency forward contracts - yen 112 1 — — Foreign currency forward contracts - euro 553 14 — — Precious metal swaps 172 9 149 5 Total 837 24 149 5 Total $ 28,364 $ 1,317 $ 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 second quarter and first six months of 2020 and 2019: Second Quarter Ended Second Quarter Ended (Thousands) June 26, 2020 June 28, 2019 Hedging relationship Line item Foreign currency forward contracts Net sales $ 8 $ (46) Precious metal swaps Cost of sales 491 (1) Copper swaps Cost of sales 132 163 Total $ 631 $ 116 Six Months Ended Six Months Ended (Thousands) June 26, 2020 June 28, 2019 Hedging relationship Line item Foreign currency forward contracts Net sales $ 7 $ (44) Precious metal swaps Cost of sales 809 (62) Copper swaps Cost of sales 453 92 Total $ 1,269 $ (14) |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | Jun. 26, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 0.7 | $ 0.4 |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Segment Reporting Information | ||||
Net sales | $ 271,468,000 | $ 297,843,000 | $ 549,414,000 | $ 599,284,000 |
Intersegment sales | 8,784,000 | 19,266,000 | 18,190,000 | 36,488,000 |
Operating profit | 8,706,000 | 22,750,000 | 4,143,000 | 44,137,000 |
Performance Alloys and Composites | ||||
Segment Reporting Information | ||||
Net sales | 101,614,000 | 135,231,000 | 200,681,000 | 262,344,000 |
Intersegment sales | (213,000) | 6,000 | 2,000 | 15,000 |
Operating profit | 8,244,000 | 19,328,000 | 13,035,000 | 38,286,000 |
Advanced Materials | ||||
Segment Reporting Information | ||||
Net sales | 150,108,000 | 133,238,000 | 310,273,000 | 277,263,000 |
Intersegment sales | 8,997,000 | 19,260,000 | 18,188,000 | 36,473,000 |
Operating profit | 4,370,000 | 6,139,000 | 9,155,000 | 13,219,000 |
Precision Coatings | ||||
Segment Reporting Information | ||||
Net sales | 19,746,000 | 29,374,000 | 38,460,000 | 59,677,000 |
Intersegment sales | 0 | 0 | 0 | 0 |
Operating profit | 2,091,000 | 3,937,000 | (7,501,000) | 6,014,000 |
Other | ||||
Segment Reporting Information | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment sales | 0 | 0 | 0 | 0 |
Operating profit | $ (5,999,000) | $ (6,654,000) | $ (10,546,000) | $ (13,382,000) |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 271,468,000 | $ 297,843,000 | $ 549,414,000 | $ 599,284,000 |
Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 125,677,000 | 103,030,000 | 247,413,000 | 210,198,000 |
Consumer Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,381,000 | 27,593,000 | 31,735,000 | 44,839,000 |
Industrial Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 34,824,000 | 40,131,000 | 69,623,000 | 78,639,000 |
Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 23,721,000 | 31,921,000 | 44,463,000 | 65,360,000 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14,917,000 | 27,330,000 | 43,814,000 | 60,621,000 |
Telecomm and Data Center | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,374,000 | 18,957,000 | 24,233,000 | 36,750,000 |
Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 17,608,000 | 18,598,000 | 37,869,000 | 40,887,000 |
Other End Market | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 27,966,000 | 30,283,000 | 50,264,000 | 61,990,000 |
Performance Alloys and Composites | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 101,614,000 | 135,231,000 | 200,681,000 | 262,344,000 |
Performance Alloys and Composites | Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,537,000 | 1,303,000 | 2,443,000 | 3,268,000 |
Performance Alloys and Composites | Consumer Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9,956,000 | 22,663,000 | 24,651,000 | 36,218,000 |
Performance Alloys and Composites | Industrial Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 23,831,000 | 28,585,000 | 47,171,000 | 55,015,000 |
Performance Alloys and Composites | Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 17,952,000 | 26,046,000 | 32,158,000 | 53,120,000 |
Performance Alloys and Composites | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,590,000 | 11,303,000 | 11,019,000 | 22,397,000 |
Performance Alloys and Composites | Telecomm and Data Center | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12,586,000 | 18,244,000 | 22,575,000 | 35,836,000 |
Performance Alloys and Composites | Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16,415,000 | 16,564,000 | 34,579,000 | 37,277,000 |
Performance Alloys and Composites | Other End Market | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,747,000 | 10,523,000 | 26,085,000 | 19,213,000 |
Advanced Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 150,108,000 | 133,238,000 | 310,273,000 | 277,263,000 |
Advanced Materials | Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 123,908,000 | 101,634,000 | 244,727,000 | 206,725,000 |
Advanced Materials | Consumer Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 21,000 | 500,000 | 138,000 | 705,000 |
Advanced Materials | Industrial Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8,419,000 | 7,704,000 | 16,781,000 | 15,632,000 |
Advanced Materials | Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,650,000 | 1,125,000 | 3,077,000 | 2,618,000 |
Advanced Materials | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9,327,000 | 16,027,000 | 32,795,000 | 38,224,000 |
Advanced Materials | Telecomm and Data Center | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 788,000 | 713,000 | 1,658,000 | 914,000 |
Advanced Materials | Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,186,000 | 1,669,000 | 3,266,000 | 3,023,000 |
Advanced Materials | Other End Market | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,809,000 | 3,866,000 | 7,831,000 | 9,422,000 |
Precision Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 19,746,000 | 29,374,000 | 38,460,000 | 59,677,000 |
Precision Coatings | Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 232,000 | 93,000 | 243,000 | 205,000 |
Precision Coatings | Consumer Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,404,000 | 4,430,000 | 6,946,000 | 7,916,000 |
Precision Coatings | Industrial Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,574,000 | 3,842,000 | 5,671,000 | 7,992,000 |
Precision Coatings | Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,119,000 | 4,750,000 | 9,228,000 | 9,622,000 |
Precision Coatings | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Precision Coatings | Telecomm and Data Center | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Precision Coatings | Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7,000 | 365,000 | 24,000 | 587,000 |
Precision Coatings | Other End Market | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9,410,000 | 15,894,000 | 16,348,000 | 33,355,000 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Consumer Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Industrial Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Telecomm and Data Center | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Other End Market | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Increase (Decrease) in Deferred Revenue | $ (257) | $ (88) | |
Accounts receivable, trade | |||
Capitalized Contract Cost [Line Items] | |||
Accounts Receivable, Trade | 141,465 | $ 141,168 | |
Change in Accounts Receivable, Trade | $ 297 | ||
Contract Asset Percent Change | 0.00% | ||
Unbilled Receivables | |||
Capitalized Contract Cost [Line Items] | |||
Unbilled Contracts Receivable | $ 5,218 | 13,583 | |
Change in Unbilled Receivables | $ (8,365) | ||
Contract Asset Percent Change | (62.00%) | ||
Unearned revenue | |||
Capitalized Contract Cost [Line Items] | |||
Deferred Revenue | $ 3,003 | $ 3,380 | |
Increase (Decrease) in Deferred Revenue | $ (377) | ||
Contract Liability Percent Change | (11.00%) |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) $ in Millions | 6 Months Ended |
Jun. 26, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 3.1 |
Revenue, Remaining Performance Obligation, Amount | $ 29.2 |
Other-net (Detail)
Other-net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Other Income and Expenses [Abstract] | ||||
Metal consignment fees | $ 2,037 | $ 2,225 | $ 4,266 | $ 5,316 |
Amortization of Intangible Assets | 106 | 368 | 294 | 758 |
Foreign currency (gain) loss | (2,486) | 307 | (2,548) | 384 |
Net loss on disposal of fixed assets | 9 | 118 | 55 | 142 |
Other items | (23) | (127) | (145) | 412 |
Total | $ (357) | $ 2,891 | $ 1,922 | $ 7,012 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020USD ($)Employee | Jun. 28, 2019USD ($) | Jun. 26, 2020USD ($)Employee | Jun. 28, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2,387 | $ 0 | $ 4,551 | $ 0 |
Performance Alloys and Composites | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,400 | 4,600 | ||
Severance Costs | $ 900 | $ 1,400 | ||
Number of positions eliminated | Employee | 60 | 60 | ||
Other Restructuring Costs | $ 1,500 | $ 3,100 | ||
Restructuring cost, expected | 4,000 | 4,000 | ||
Performance Alloys and Composites | Other Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring facility cost remaining | 400 | 400 | ||
Performance Alloys and Composites | Accrued Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Remaining severance payments | $ 1,200 | $ 1,200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, percent | 19.50% | 18.80% | 19.40% | 18.50% |
Effective income tax rate, amount | $ 0.8 | $ 0.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Numerator For Basic And Diluted EPS: | ||||
Net income | $ 6,678 | $ 15,540 | $ 3,575 | $ 32,446 |
Denominator for basic EPS: | ||||
Weighted-average shares outstanding | 20,317 | 20,383 | 20,350 | 20,326 |
Effect of dilutive securities: | ||||
Diluted potential common shares (in shares) | 237 | 283 | 237 | 309 |
Denominator for diluted EPS: | ||||
Adjusted weighted-average shares outstanding | 20,554 | 20,666 | 20,587 | 20,635 |
Basic EPS (in usd per share) | $ 0.33 | $ 0.76 | $ 0.18 | $ 1.60 |
Diluted EPS (in usd per share) | $ 0.32 | $ 0.75 | $ 0.17 | $ 1.57 |
Stock Appreciation Rights (SARs) | ||||
Effect of dilutive securities: | ||||
Dilutive effect of share-based compensation (in shares) | 36 | 76 | 36 | 92 |
Restricted Stock Units (RSUs) | ||||
Effect of dilutive securities: | ||||
Dilutive effect of share-based compensation (in shares) | 63 | 76 | 80 | 77 |
Performance Shares | ||||
Effect of dilutive securities: | ||||
Dilutive effect of share-based compensation (in shares) | 138 | 131 | 121 | 140 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Out-of-The-Money [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from diluted EPS calculation | 191,500 | 84,509 | 230,893 | 144,154 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 54,720 | $ 35,612 |
Work in process | 172,678 | 177,780 |
Finished goods | 30,304 | 25,506 |
Subtotal | 257,702 | 238,898 |
Less: LIFO reserve balance | 47,855 | 48,508 |
Inventories | $ 209,847 | $ 190,390 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||||
LIFO liquidation effect | $ 100 | $ 100 | $ 100 | $ 100 | |
Notional Amount of Nonderivative Instruments | $ 333,900 | $ 309,300 |
Held for Sale (Details)
Held for Sale (Details) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 2,987 | |
Inventories, net | 1,305 | |
Prepaid and other current assets | 8 | |
Property, plant, and equipment - net | 2,508 | |
Operating lease, right-of-use assets | 716 | |
Impairment on carrying value | (1,713) | |
Assets held for sale | 5,811 | $ 0 |
Accounts payable | 870 | |
Salaries and wages | 245 | |
Other liabilities and accrued items | 228 | |
Operating lease liabilities | 728 | |
Other long term liabilities | 55 | |
Liabilities held for sale | $ 2,126 | $ 0 |
Held for Sale (Details Textual)
Held for Sale (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Held for sale impairment charges | $ 0 | $ 0 | $ 1,713 | $ 0 |
Goodwill impairment charges | $ 0 | $ 0 | $ 9,053 | $ 0 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||||
Impairment charge | $ 0 | $ 0 | $ (9,053) | $ 0 | |
Other | 43 | ||||
Goodwill | 70,001 | 70,001 | $ 79,011 | ||
Performance Alloys and Composites | |||||
Goodwill [Line Items] | |||||
Impairment charge | 0 | ||||
Other | 0 | ||||
Goodwill | 1,899 | 1,899 | 1,899 | ||
Advanced Materials | |||||
Goodwill [Line Items] | |||||
Impairment charge | 0 | ||||
Other | 43 | ||||
Goodwill | 50,233 | 50,233 | 50,190 | ||
Precision Coatings | |||||
Goodwill [Line Items] | |||||
Impairment charge | (9,053) | ||||
Other | 0 | ||||
Goodwill | $ 17,869 | $ 17,869 | $ 26,922 |
Customer Prepayments (Details)
Customer Prepayments (Details) $ in Millions | 3 Months Ended |
Jun. 26, 2020USD ($) | |
Customer Prepayments [Abstract] | |
Deferred Income | $ 31.4 |
Future Customer Prepayments | 70 |
Deferred Revenue, Additions | $ 19.6 |
Components of Lease Expense (De
Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 2,274 | $ 2,291 | $ 4,532 | $ 5,003 |
Finance Leases | ||||
Amortization of right-of-use assets | 350 | 354 | 701 | 710 |
Interest on lease liabilities | 238 | 259 | 482 | 522 |
Total lease cost | $ 2,862 | $ 2,904 | $ 5,715 | $ 6,235 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 48,942 | $ 23,413 |
Other liabilities and accrued items | 5,298 | 6,542 |
Operating lease liabilities | 44,830 | 18,091 |
Finance Leases | ||
Finance lease liabilities | 16,939 | 17,424 |
Total principal payable on finance leases | 18,244 | 18,689 |
Property, plant, and equipment | 924,620 | 916,965 |
Allowances for depreciation, depletion, and amortization | (685,355) | (684,689) |
Finance lease assets, net | 239,265 | 232,276 |
Other liabilities and accrued items | 1,305 | 1,265 |
Property, Plant and Equipment | ||
Property, plant, and equipment | 26,258 | 26,069 |
Allowances for depreciation, depletion, and amortization | (4,035) | (3,570) |
Finance lease assets, net | $ 22,223 | $ 22,499 |
Future Estimated Minimum Paymen
Future Estimated Minimum Payments Under Finance Leases and Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2020 | $ 1,119 | |
2021 | 2,238 | |
2022 | 2,238 | |
2023 | 1,528 | |
2024 | 1,174 | |
2025 and thereafter | 21,126 | |
Total lease payments | 29,423 | |
Less amount of lease payment representing interest | 11,179 | |
Total present value of lease payments | 18,244 | $ 18,689 |
Operating Leases | ||
2020 | 3,986 | |
2021 | 7,841 | |
2022 | 6,846 | |
2023 | 6,548 | |
2024 | 4,704 | |
2025 and thereafter | 46,967 | |
Total lease payments | 76,892 | |
Less amount of lease payment representing interest | 26,764 | |
Total present value of lease payments | $ 50,128 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Details) - USD ($) | 6 Months Ended | |
Jun. 26, 2020 | Jun. 28, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 7,275,000 | $ 7,710,000 |
Operating cash flows from finance leases | 482,000 | 522,000 |
Financing cash flows from finance leases | $ 626,000 | $ 599,000 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Leases [Abstract] | ||||
Operating Lease Term Maximum | 25 years | |||
Operating Lease, Weighted Average Remaining Lease Term | 13 years 6 months 25 days | 13 years 6 months 25 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 19 years 4 months 13 days | 19 years 4 months 13 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 6.41% | 6.41% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.31% | 5.31% | ||
Operating lease expense | $ 2,300 | $ 2,300 | $ 4,500 | $ 5,000 |
Pensions and Other Post-emplo_3
Pensions and Other Post-employment Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Components of net periodic benefit cost | ||||
Net pension settlements/curtailments | $ (3,296) | $ (94) | $ (3,296) | |
Pension Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 0 | 1,418 | 0 | 2,758 |
Interest cost | 1,215 | 1,347 | 2,429 | 2,904 |
Expected return on plan assets | (2,205) | (2,167) | (4,410) | (4,290) |
Amortization of prior service cost (benefit) | 0 | 122 | 0 | 242 |
Amortization of net loss (gain) | 284 | 627 | 568 | 1,431 |
Net periodic benefit (credit) cost | (706) | 1,347 | (1,413) | 3,045 |
Net pension settlements/curtailments | 94 | 3,296 | 94 | 3,296 |
Total net benefit cost | (612) | 4,643 | (1,319) | 6,341 |
Other Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | 15 | 18 | 31 | 35 |
Interest cost | 53 | 99 | 107 | 199 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (benefit) | (374) | (375) | (749) | (749) |
Amortization of net loss (gain) | (83) | (23) | (166) | (46) |
Net periodic benefit (credit) cost | (389) | (281) | (777) | (561) |
Net pension settlements/curtailments | 0 | 0 | 0 | 0 |
Total net benefit cost | $ (389) | $ (281) | $ (777) | $ (561) |
Pensions and Other Post-emplo_4
Pensions and Other Post-employment Benefits (Detail 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2020 | Jun. 28, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | $ 0 | $ 3,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | Mar. 27, 2020 | Dec. 31, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | $ (45,571) | $ (43,978) | $ (45,571) | $ (43,978) | $ (47,173) | $ (45,462) | $ (57,270) | $ (58,234) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 980 | 13,151 | (1,636) | 13,976 | ||||
Amounts reclassified from accumulated other comprehensive income | 701 | 3,897 | 1,315 | 4,427 | ||||
Net current period other comprehensive income (loss) before tax | 1,681 | 17,048 | (321) | 18,403 | ||||
Deferred taxes on current period activity | 79 | 3,756 | (212) | 4,147 | ||||
Net current period other comprehensive (loss) income after tax | 1,602 | 13,292 | (109) | 14,256 | ||||
Pension and Post Employment Benefits [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | (41,241) | (40,050) | (41,241) | (40,050) | (41,330) | (41,346) | (54,003) | (54,543) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 0 | 14,224 | 0 | 14,224 | ||||
Amounts reclassified from accumulated other comprehensive income | 70 | 3,781 | 46 | 4,441 | ||||
Net current period other comprehensive income (loss) before tax | 70 | 18,005 | 46 | 18,665 | ||||
Deferred taxes on current period activity | (19) | 4,052 | (59) | 4,172 | ||||
Net current period other comprehensive (loss) income after tax | 89 | 13,953 | 105 | 14,493 | ||||
Foreign Currency Translation [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | (4,720) | (4,756) | (4,720) | (4,756) | (5,886) | (5,013) | (5,095) | (4,592) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 1,166 | 339 | 293 | (164) | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||||
Net current period other comprehensive income (loss) before tax | 1,166 | 339 | 293 | (164) | ||||
Deferred taxes on current period activity | 0 | 0 | 0 | 0 | ||||
Net current period other comprehensive (loss) income after tax | 1,166 | 339 | 293 | (164) | ||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | 390 | 828 | 390 | 828 | 43 | 897 | 1,828 | 901 |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | (186) | (1,412) | (1,929) | (84) | ||||
Amounts reclassified from accumulated other comprehensive income | 631 | 116 | 1,269 | (14) | ||||
Net current period other comprehensive income (loss) before tax | 445 | (1,296) | (660) | (98) | ||||
Deferred taxes on current period activity | 98 | (296) | (153) | (25) | ||||
Net current period other comprehensive (loss) income after tax | 347 | (1,000) | (507) | (73) | ||||
Foreign currency forward contract | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | 1,065 | 1,420 | 1,065 | 1,420 | 1,214 | 1,324 | 1,663 | 1,263 |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | (201) | (269) | (343) | 248 | ||||
Amounts reclassified from accumulated other comprehensive income | 8 | (46) | 7 | (44) | ||||
Net current period other comprehensive income (loss) before tax | (193) | (315) | (336) | 204 | ||||
Deferred taxes on current period activity | (44) | (72) | (77) | 47 | ||||
Net current period other comprehensive (loss) income after tax | (149) | (243) | (259) | 157 | ||||
Precious Metal Contracts [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | (779) | (458) | (779) | (458) | (841) | (452) | (24) | 79 |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | (411) | (563) | (1,234) | (636) | ||||
Amounts reclassified from accumulated other comprehensive income | 491 | (1) | 809 | (62) | ||||
Net current period other comprehensive income (loss) before tax | 80 | (564) | (425) | (698) | ||||
Deferred taxes on current period activity | 18 | (130) | (98) | (161) | ||||
Net current period other comprehensive (loss) income after tax | 62 | (434) | (327) | (537) | ||||
Copper swaps | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | 104 | (134) | 104 | (134) | $ (330) | $ 25 | $ 189 | $ (441) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 426 | (580) | (352) | 304 | ||||
Amounts reclassified from accumulated other comprehensive income | 132 | 163 | 453 | 92 | ||||
Net current period other comprehensive income (loss) before tax | 558 | (417) | 101 | 396 | ||||
Deferred taxes on current period activity | 124 | (94) | 22 | 89 | ||||
Net current period other comprehensive (loss) income after tax | $ 434 | $ (323) | $ 79 | $ 307 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense (Detail) | 6 Months Ended |
Jun. 26, 2020$ / sharesshares | |
Stock Appreciation Rights (SARs) | |
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 |
Number of shares granted in period | shares | 64,636 |
Grant date fair value per unit (in usd per share) | $ / shares | $ 13.67 |
Restricted Stock Units (RSUs) | Director Equity Plan [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted in period | shares | 15,976 |
Grant date fair value per unit (in usd per share) | $ / shares | $ 48.42 |
Restricted Stock Units (RSUs) | Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted in period | shares | 62,841 |
Grant date fair value per unit (in usd per share) | $ / shares | $ 49.34 |
Stock-based Compensation Expe_4
Stock-based Compensation Expense Textual (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3.1 | $ 3.5 | $ 4.1 | $ 6.2 |
Unearned Compensation | $ 12.6 | $ 12.6 | ||
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 | 62,841 | |||
Grant date fair value per unit (in usd per share) | $ 49.34 | |||
Vesting period | 3 years | |||
Director Equity Plan [Domain] | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted in period | 15,976 | |||
Grant date fair value per unit (in usd per share) | $ 48.42 | |||
Vesting period | 1 year |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Investment Assets | $ 2,625 | $ 3,391 |
Foreign Currency Forward Contract | 2,220 | 188 |
Precious Metal Swaps | 0 | 35 |
Copper Swaps | 137 | 61 |
Total Financial Assets | 4,982 | 3,675 |
Deferred Compensation Investment Related Liability | 2,625 | 3,391 |
Foreign Currency Forward Contract | 523 | 211 |
Precious Metal Swaps | 1,013 | 623 |
Copper Swaps | 3 | 28 |
Total Financial Liabilities | 4,164 | 4,253 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Investment Assets | 2,625 | 3,391 |
Foreign Currency Forward Contract | 0 | 0 |
Precious Metal Swaps | 0 | 0 |
Copper Swaps | 0 | 0 |
Total Financial Assets | 2,625 | 3,391 |
Deferred Compensation Investment Related Liability | 2,625 | 3,391 |
Foreign Currency Forward Contract | 0 | 0 |
Precious Metal Swaps | 0 | 0 |
Copper Swaps | 0 | 0 |
Total Financial Liabilities | 2,625 | 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 | 2,220 | 188 |
Precious Metal Swaps | 0 | 35 |
Copper Swaps | 137 | 61 |
Total Financial Assets | 2,357 | 284 |
Deferred Compensation Investment Related Liability | 0 | 0 |
Foreign Currency Forward Contract | 523 | 211 |
Precious Metal Swaps | 1,013 | 623 |
Copper Swaps | 3 | 28 |
Total Financial Liabilities | 1,539 | 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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 26, 2020 | Jun. 26, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) | |||
Gain on foreign currency derivatives recorded in earnings, net | $ 1,700 | $ 2,300 | |
Not designated as hedging instrument | Prepaid expenses | Foreign currency forward contract | |||
Derivative Instruments, Gain (Loss) | |||
Notional amount, asset | 152,803 | 152,803 | $ 13,734 |
Fair value, asset | 2,198 | 2,198 | 95 |
Not designated as hedging instrument | Other liabilities and accrued items | Foreign currency forward contract | |||
Derivative Instruments, Gain (Loss) | |||
Notional amount, liability | 9,786 | 9,786 | 5,757 |
Fair value, liability | $ 63 | $ 63 | $ 16 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activity (Details - Designated as hedges) - Designated as hedging instrument - USD ($) $ in Thousands | Jun. 26, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional amount total | $ 28,364 | $ 34,205 |
Fair value total | 1,317 | 657 |
Prepaid expenses | ||
Derivative [Line Items] | ||
Notional amount, asset | 7,319 | 7,558 |
Fair value, asset | 159 | 188 |
Prepaid expenses | Foreign currency forward contract | Yen | ||
Derivative [Line Items] | ||
Notional amount, asset | 0 | 1,025 |
Fair value, asset | 0 | 10 |
Prepaid expenses | Foreign currency forward contract | Euro | ||
Derivative [Line Items] | ||
Notional amount, asset | 5,084 | 3,466 |
Fair value, asset | 22 | 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 | 2,235 | 1,951 |
Fair value, asset | 137 | 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 | 20,208 | 26,341 |
Fair value, liability | 1,452 | 841 |
Other liabilities and accrued items | Foreign currency forward contract | Yen | ||
Derivative [Line Items] | ||
Notional amount, liability | 2,031 | 2,355 |
Fair value, liability | 25 | 12 |
Other liabilities and accrued items | Foreign currency forward contract | Euro | ||
Derivative [Line Items] | ||
Notional amount, liability | 11,974 | 15,686 |
Fair value, liability | 420 | 183 |
Other liabilities and accrued items | Precious metal swaps | ||
Derivative [Line Items] | ||
Notional amount, liability | 5,910 | 7,034 |
Fair value, liability | 1,004 | 618 |
Other liabilities and accrued items | Copper swaps | ||
Derivative [Line Items] | ||
Notional amount, liability | 293 | 1,266 |
Fair value, liability | 3 | 28 |
Other long-term liabilities | ||
Derivative [Line Items] | ||
Notional amount, liability | 837 | 149 |
Fair value, liability | 24 | 5 |
Other long-term liabilities | Foreign currency forward contract | Yen | ||
Derivative [Line Items] | ||
Notional amount, liability | 112 | 0 |
Fair value, liability | 1 | 0 |
Other long-term liabilities | Foreign currency forward contract | Euro | ||
Derivative [Line Items] | ||
Notional amount, liability | 553 | 0 |
Fair value, liability | 14 | 0 |
Other long-term liabilities | Precious metal swaps | ||
Derivative [Line Items] | ||
Notional amount, liability | 172 | 149 |
Fair value, liability | $ 9 | $ 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 | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 28, 2019 | Jun. 26, 2020 | Jun. 28, 2019 | |
Derivative Instruments, Gain (Loss) | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 631 | $ 116 | $ 1,269 | $ (14) |
Net sales | Foreign currency forward contract | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative, Gain (Loss) on Derivative, Net | 8 | (46) | 7 | (44) |
Cost of sales | Precious metal swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative, Gain (Loss) on Derivative, Net | 491 | (1) | 809 | (62) |
Cost of sales | Copper swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 132 | $ 163 | $ 453 | $ 92 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activity Derivative Instruments and Hedging Activity (Details - Foreign Currency Derivatives Recorded in Earnings) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 26, 2020 | Jun. 26, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 1.7 | $ 2.3 |
Contingencies (Detail)
Contingencies (Detail) $ in Millions | 6 Months Ended | |
Jun. 26, 2020USD ($)claim | Dec. 31, 2019USD ($) | |
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 | $ | $ 6 | $ 5.9 |
Loss Contingency, Pending Claims, Number | claim | 2 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 26, 2020 | Jun. 28, 2019 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||||
Short-term debt | $ 151,731 | $ 151,731 | $ 868 | |
Short-term debt under revolving credit agreement | 150,000 | 150,000 | $ 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 179,100 | $ 179,100 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2020 | Jun. 26, 2020 | Jun. 28, 2019 | Jul. 17, 2020 | |
Subsequent Events [Abstract] | ||||
Short-term debt under revolving credit agreement | $ 150,000 | $ 150,000 | $ 0 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Acquisition, Transaction Costs | $ 160,000 |