Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-4347 | |
Entity Registrant Name | ROGERS CORP | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 06-0513860 | |
Entity Address, Address Line One | 2225 W. Chandler Blvd. | |
Entity Address, City or Town | Chandler | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85224-6155 | |
City Area Code | 480 | |
Local Phone Number | 917-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,662,086 | |
Entity Central Index Key | 0000084748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, | |
Entity Trading Symbol | ROG | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 198,810 | $ 239,798 |
Cost of sales | 133,180 | 154,404 |
Gross margin | 65,630 | 85,394 |
Selling, General and Administrative Expense | 40,330 | 43,252 |
Research and Development Expense | 7,805 | 7,609 |
Restructuring and impairment charges | 0 | 822 |
Other operating expense, net | 20 | 911 |
Operating income | 17,475 | 32,800 |
Equity income in unconsolidated joint ventures | 1,218 | 837 |
Other (expense) income, net | (786) | 1,404 |
Interest expense, net | (1,207) | (1,938) |
Income before income tax expense | 16,700 | 33,103 |
Income tax expense | 3,441 | 4,704 |
Net income | $ 13,259 | $ 28,399 |
Basic earnings per share (in dollars per share) | $ 0.71 | $ 1.53 |
Diluted earnings per share (in dollars per share) | $ 0.71 | $ 1.52 |
Shares used in computing: | ||
Basic earnings per share (in shares) | 18,669 | 18,557 |
Diluted earnings per share (in shares) | 18,691 | 18,692 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 13,259 | $ 28,399 |
Foreign currency translation adjustment | (6,894) | (4,257) |
Pension and other postretirement benefits: | ||
Amortization of loss, net of tax (Note 4) | 66 | 156 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax [Abstract] | ||
Change in unrealized loss before reclassifications, net of tax (Note 4) | (1,249) | (394) |
Unrealized gain reclassified into earnings, net of tax (Note 4) | (67) | (94) |
Net current-period other comprehensive income (loss) | (8,144) | (4,589) |
Comprehensive income | $ 5,115 | $ 23,810 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 308,277 | $ 166,849 |
Accounts receivable, less allowance for doubtful accounts of $1,726 and $1,691 | 144,202 | 122,285 |
Contract assets | 20,178 | 22,455 |
Inventories | 127,517 | 132,859 |
Prepaid income taxes | 4,063 | 4,524 |
Asbestos-related insurance receivables, current portion | 4,292 | 4,292 |
Other current assets | 12,764 | 10,838 |
Total current assets | 621,293 | 464,102 |
Property, plant and equipment, net of accumulated depreciation of $355,595 and $341,119 | 260,922 | 260,246 |
Investments in unconsolidated joint ventures | 15,743 | 16,461 |
Deferred income taxes | 18,328 | 17,117 |
Goodwill | 260,870 | 262,930 |
Other intangible assets, net of amortization | 155,004 | 158,947 |
Pension assets | 12,954 | 12,790 |
Asbestos-related insurance receivables, non-current portion | 74,024 | 74,024 |
Other long-term assets | 7,278 | 6,564 |
Total assets | 1,426,416 | 1,273,181 |
Current liabilities | ||
Accounts payable | 39,707 | 33,019 |
Accrued employee benefits and compensation | 26,464 | 29,678 |
Accrued income taxes payable | 6,626 | 10,649 |
Asbestos-related liabilities, current portion | 5,007 | 5,007 |
Other accrued liabilities | 19,535 | 21,872 |
Total current liabilities | 97,339 | 100,225 |
Borrowings under revolving credit facility | 273,000 | 123,000 |
Pension and other postretirement benefits liabilities | 1,596 | 1,567 |
Asbestos-related liabilities, non-current portion | 80,767 | 80,873 |
Non-current income tax | 11,320 | 10,423 |
Deferred income taxes | 9,115 | 9,220 |
Other long-term liabilities | 15,470 | 13,973 |
Commitments and contingencies (Note 10 and Note 12) | ||
Shareholders’ equity | ||
Capital stock - $1 par value; 50,000 authorized shares; 18,662 and 18,577 shares issued and outstanding | 18,662 | 18,577 |
Additional paid-in capital | 137,235 | 138,526 |
Retained earnings | 836,961 | 823,702 |
Accumulated other comprehensive loss | (55,049) | (46,905) |
Total shareholders' equity | 937,809 | 933,900 |
Total liabilities and shareholders' equity | $ 1,426,416 | $ 1,273,181 |
Capital Stock, shares outstanding (shares) | 18,662 | 18,577 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,726 | $ 1,691 |
Accumulated depreciation | $ 355,595,000 | $ 341,119,000 |
Capital Stock, par value (in dollars per share) | $ 1 | $ 1 |
Capital Stock, authorized shares (shares) | 50,000,000 | 50,000,000 |
Capital Stock, shares issued (shares) | 18,662,000 | 18,577,000 |
Capital Stock, shares outstanding (shares) | 18,662,000 | 18,577,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities: | ||
Net income | $ 13,259 | $ 28,399 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 10,926 | 12,984 |
Equity compensation expense | 3,127 | 2,476 |
Deferred income taxes | (851) | (2,505) |
Equity in undistributed income of unconsolidated joint ventures | (1,218) | (837) |
Dividends received from unconsolidated joint ventures | 1,785 | 1,741 |
Pension and other postretirement benefits | (50) | (174) |
Loss on sale or disposal of property, plant and equipment | 20 | 273 |
Provision (benefit) for doubtful accounts | 128 | (158) |
Changes in assets and liabilities: | ||
Accounts receivable | (22,981) | (16,948) |
Contract assets | 2,276 | (4,588) |
Inventories | 4,095 | (1,550) |
Pension and postretirement benefit contributions | (64) | (6) |
Other current assets | (1,558) | (2,605) |
Accounts payable and other accrued expenses | (733) | (327) |
Other, net | 472 | 885 |
Net cash provided by operating activities | 8,633 | 17,060 |
Investing Activities: | ||
Capital expenditures | (11,160) | (12,647) |
Proceeds from the sale of property, plant and equipment, net | 0 | 7 |
Return of capital from unconsolidated joint ventures | 0 | 2,625 |
Net cash used in investing activities | (11,160) | (10,015) |
Financing Activities: | ||
Proceeds from borrowings under revolving credit facility | 150,000 | 0 |
Repayment of debt principal and finance lease obligations | (96) | (5,098) |
Payments of taxes related to net share settlement of equity awards | (4,997) | (7,140) |
Proceeds from the exercise of stock options, net | 0 | 285 |
Proceeds from issuance of shares to employee stock purchase plan | 664 | 587 |
Net cash provided by (used in) financing activities | 145,571 | (11,366) |
Effect of exchange rate fluctuations on cash | (1,616) | (1,343) |
Net increase (decrease) in cash and cash equivalents | 141,428 | (5,664) |
Cash and cash equivalents at beginning of period | 166,849 | 167,738 |
Cash and cash equivalents at end of period | 308,277 | 162,074 |
Supplemental Disclosures: | ||
Accrued capital additions | 2,525 | 2,068 |
Interest, net of amounts capitalized | 1,386 | 2,161 |
Income taxes | $ 13,218 | $ 2,014 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Capital Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning of period at Dec. 31, 2018 | $ 18,395 | $ 132,360 | $ 776,403 | $ (78,834) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued for vested restricted stock units, net of shares withheld for taxes | 133 | (7,273) | |||
Stock options exercised | 8 | 277 | |||
Shares issued for employee stock purchase plan | 7 | 580 | |||
Shares issued to directors | 3 | (3) | |||
Equity compensation expense | 2,476 | ||||
Net income | $ 28,399 | 28,399 | |||
Other comprehensive loss | (4,589) | (4,589) | |||
Balance, end of period at Mar. 31, 2019 | 868,322 | 18,546 | 128,417 | 804,782 | (83,423) |
Balance, beginning of period at Dec. 31, 2019 | 933,900 | 18,577 | 138,526 | 823,702 | (46,905) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued for vested restricted stock units, net of shares withheld for taxes | 79 | (5,076) | |||
Stock options exercised | 0 | 0 | |||
Shares issued for employee stock purchase plan | 6 | 658 | |||
Shares issued to directors | 0 | 0 | |||
Equity compensation expense | 3,127 | ||||
Net income | 13,259 | 13,259 | |||
Other comprehensive loss | (8,144) | (8,144) | |||
Balance, end of period at Mar. 31, 2020 | $ 937,809 | $ 18,662 | $ 137,235 | $ 836,961 | $ (55,049) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation As used herein, the terms “Company,” “Rogers,” “we,” “us,” “our” and similar terms mean Rogers Corporation and its consolidated subsidiaries, unless the context indicates otherwise. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the accompanying condensed consolidated financial statements include all normal recurring adjustments necessary for their fair presentation in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts COVID-19 as of March 31, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for doubtful accounts, equity compensation, the carrying value of our goodwill, other intangible assets as well as other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition. While there was not a material impact to our consolidated financial statements as of and for the three months ended March 31, 2020, resulting from our assessments, our future assessment of our current expectations at that time of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts, copper derivative contracts and interest rate swaps. Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows: Derivative Instruments at Fair Value as of March 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total (1) Foreign currency contracts $ — $ (120) $ — $ (120) Copper derivative contracts $ — $ 341 $ — $ 341 Interest rate swap contract $ — $ (2,944) $ — $ (2,944) Derivative Instruments at Fair Value as of December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total (1) Foreign currency contracts $ — $ (6) $ — $ (6) Copper derivative contracts $ — $ 1,147 $ — $ 1,147 Interest rate swap contract $ — $ (1,254) $ — $ (1,254) (1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position, except the 2020 and 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item. For additional information on derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.” |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | Hedging Transactions and Derivative Financial Instruments We are exposed to certain risks related to our ongoing business operations. The primary risks being managed through our use of derivative instruments are foreign currency exchange rate risk, commodity pricing risk (primarily related to copper) and interest rate risk. We do not use derivative instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of these risks is described below: • Foreign Currency – The fair value of any foreign currency option derivative is based upon valuation models applied to current market information such as strike price, spot rate, maturity date and volatility, and by reference to market values resulting from an over-the-counter market or obtaining market data for similar instruments with similar characteristics. • Commodity – The fair value of copper derivatives is computed using a combination of intrinsic and time value valuation models, which are collectively a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate and volatility. The intrinsic valuation model reflects the difference between the strike price of the underlying copper derivative instrument and the current prevailing copper prices in an over-the-counter market at period end. The time value valuation model incorporates changes in the price of the underlying copper derivative instrument, the time value of money, the underlying copper derivative instrument’s strike price and the remaining time to the underlying copper derivative instrument’s expiration date from the period end date. • Interest Rates – The fair value of interest rate swap instruments is derived by comparing the present value of the interest rate forward curve against the present value of the swap rate, relative to the notional amount of the swap. The net value represents the estimated amount we would receive or pay to terminate the agreements. Settlement amounts for an “in the money” swap would be adjusted down to compensate the counterparties for cost of funds, and the adjustment is directly related to the counterparties’ credit ratings. The guidance for the accounting and disclosure of derivatives and hedging transactions requires companies to recognize all of their derivative instruments as either assets or liabilities at fair value in the condensed consolidated statements of financial position. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies for hedge accounting treatment as defined under the applicable accounting guidance. For derivative instruments that are designated and qualify for hedge accounting treatment as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) in the condensed consolidated statements of comprehensive income (loss). This gain or loss is reclassified into earnings in the same line item of the condensed consolidated statements of operations associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. As of March 31, 2020 and 2019, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge, and the hedge was highly effective. Foreign Currency During the three months ended March 31, 2020, we entered into U.S. dollar, euro, Korean won, and Japanese yen forward contracts. We entered into these foreign currency forward contracts to mitigate certain global transactional exposures. These contracts do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other (expense) income, net” in our condensed consolidated statements of operations in the period in which the adjustment occurred. As of March 31, 2020, the notional values of the remaining foreign currency forward contracts were as follows: Notional Values of Foreign Currency Derivatives USD/CNH $ 20,439,416 EUR/USD € 13,510,979 KRW/USD ₩ 9,669,600,000 JPY/EUR ¥ 360,000,000 Commodity As of March 31, 2020, we had 30 outstanding contracts to hedge exposure related to the purchase of copper in our Power Electronics Solutions (PES) and Advanced Connectivity Solutions (ACS) operating segments. These contracts are held with financial institutions and are intended to offset rising copper prices and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other (expense) income, net” in our condensed consolidated statements of operations in the period in which the adjustment occurred. As of March 31, 2020, the volume of our copper contracts outstanding was as follows: Volume of Copper Derivatives April 2020 - June 2020 202 metric tons per month July 2020 - September 2020 201 metric tons per month October 2020 - December 2020 201 metric tons per month January 2021 - March 2021 256 metric tons per month April 2021 - June 2021 256 metric tons per month Interest Rates In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction has been designated as a cash flow hedge and qualifies for hedge accounting treatment. For additional information regarding our revolving credit facility, refer to “Note 9 – Debt.” Effects on Financial Statements The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows: Three Months Ended (Dollars in thousands) Financial Statement Line Item March 31, 2020 March 31, 2019 Foreign Currency Contracts Contracts not designated as hedging instruments Other (expense) income, net $ (528) $ (711) Copper Derivative Contracts Contracts not designated as hedging instruments Other (expense) income, net $ (1,135) $ 310 Interest Rate Swap Contract designated as hedging instrument Other comprehensive loss $ (1,690) $ (632) We estimate approximately $1.4 million of pre-tax net losses currently reported in accumulated other comprehensive loss in the condensed consolidated statements of financial position will be reclassified into the condensed consolidated statements of operations within the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component were as follows: (Dollars and accompanying footnotes in thousands) Foreign Currency Translation Adjustments Pension and Other Postretirement Benefits (1) Derivative Instrument Designated as Cash Flow Hedge (2) Total Balance as of December 31, 2019 $ (35,478) $ (10,455) $ (972) $ (46,905) Other comprehensive loss before reclassifications (6,894) — (1,249) (8,143) Amounts reclassified from accumulated other comprehensive loss — 66 (67) (1) Net current-period other comprehensive income (loss) (6,894) 66 (1,316) (8,144) Balance as of March 31, 2020 $ (42,372) $ (10,389) $ (2,288) $ (55,049) Balance as of December 31, 2018 $ (30,488) $ (48,700) $ 354 $ (78,834) Other comprehensive loss before reclassifications (4,257) — (394) (4,651) Amounts reclassified from accumulated other comprehensive loss — 156 (94) 62 Net current-period other comprehensive income (loss) (4,257) 156 (488) (4,589) Balance as of March 31, 2019 $ (34,745) $ (48,544) $ (134) $ (83,423) (1) Net of taxes of $2,349 and $2,368 as of March 31, 2020 and December 31, 2019, respectively. Net of taxes of $9,938 and $9,984 as of March 31, 2019 and December 31, 2018, respectively. (2) Net of taxes of $656 and $282 as of March 31, 2020 and December 31, 2019, respectively. Net of taxes of $37 and $(106) as of March 31, 2019 and December 31, 2018, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, which are valued at the lower of cost or net realizable value, consisted of the following: (Dollars in thousands) March 31, 2020 December 31, 2019 Raw materials $ 62,004 $ 61,338 Work-in-process 29,999 30,043 Finished goods 35,514 41,478 Total inventories $ 127,517 $ 132,859 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the net carrying amount of goodwill by operating segment were as follows: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total December 31, 2019 $ 51,694 $ 142,030 $ 66,982 $ 2,224 $ 262,930 Foreign currency translation adjustment — (788) (1,272) — $ (2,060) March 31, 2020 $ 51,694 $ 141,242 $ 65,710 $ 2,224 $ 260,870 Other Intangible Assets The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 148,844 $ 40,546 $ 108,298 $ 149,317 $ 39,018 $ 110,299 Technology 80,368 46,168 34,200 80,938 45,190 35,748 Trademarks and trade names 11,958 4,555 7,403 11,994 4,361 7,633 Covenants not to compete 1,340 585 755 1,340 505 835 Total definite-lived other intangible assets 242,510 91,854 150,656 243,589 89,074 154,515 Indefinite-lived other intangible asset 4,348 — 4,348 4,432 — 4,432 Total other intangible assets $ 246,858 $ 91,854 $ 155,004 $ 248,021 $ 89,074 $ 158,947 In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations. Amortization expense was $3.7 million and $4.4 million, for the three months ended March 31, 2020 and 2019, respectively. The estimated future amortization expense is $10.9 million for the remainder of 2020 and $13.8 million, $13.3 million, $12.7 million and $11.4 million for 2021, 2022, 2023 and 2024, respectively. The weighted average amortization period as of March 31, 2020, by definite-lived other intangible asset class, was as follows: Definite-Lived Other Intangible Asset Class Weighted Average Remaining Amortization Period Customer relationships 7.2 years Technology 4.1 years Trademarks and trade names 4.8 years Covenants not to compete 1.5 years Total definite-lived other intangible assets 6.3 years |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: (Dollars and shares in thousands, except per share amounts) Three Months Ended March 31, 2020 March 31, 2019 Numerator: Net income $ 13,259 $ 28,399 Denominator: Weighted-average shares outstanding - basic 18,669 18,557 Effect of dilutive shares 22 135 Weighted-average shares outstanding - diluted 18,691 18,692 Basic earnings per share $ 0.71 $ 1.53 Diluted earnings per share $ 0.71 $ 1.52 Dilutive shares are calculated using the treasury stock method and primarily include unvested restricted stock units. Anti-dilutive shares are excluded from the calculation of diluted shares and diluted earnings per share. For the three months ended March 31, 2020 and 2019, 127,106 shares and 23,081 shares were excluded, respectively. |
Capital Stock and Equity Compen
Capital Stock and Equity Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Capital Stock and Equity Compensation | Capital Stock and Equity Compensation Equity Compensation Performance-Based Restricted Stock Units As of March 31, 2020, we had performance-based restricted stock units from 2020, 2019, and 2018 outstanding. These awards generally cliff vest at the end of a three-year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures. The outstanding awards have one measurement criterion: the three-year total shareholder return (TSR) on our capital stock as compared to that of a specified group of peer companies. The TSR measurement criterion of the awards is considered a market condition. As such, the fair value of this measurement criterion was determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur. The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2020 and 2019: February 12, 2020 June 3, 2019 February 7, 2019 Expected volatility 41.0% 39.7% 36.7% Expected term (in years) 2.9 2.6 2.9 Risk-free interest rate 1.41% 1.78% 2.43% Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility. Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model. Risk-free interest rate – We use an implied “spot rate” yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate. Expected dividend yield – We do not currently pay dividends on our capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model. A summary of activity of the outstanding performance-based restricted stock units for the three months ended March 31, 2020 is presented below: Performance-Based Awards outstanding as of December 31, 2019 106,943 Awards granted 87,244 Stock issued (75,486) Awards forfeited (774) Awards outstanding as of March 31, 2020 117,927 We recognized $1.5 million and $0.9 million of compensation expense for performance-based restricted stock units for the three months ended March 31, 2020 and 2019, respectively. Time-Based Restricted Stock Units As of March 31, 2020, we had time-based restricted stock unit awards from 2020, 2019, 2018 and 2017 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur. A summary of activity of the outstanding time-based restricted stock units for the three months ended March 31, 2020 is presented below: Time-Based Awards outstanding as of December 31, 2019 101,685 Awards granted 57,387 Stock issued (46,220) Awards forfeited (1,147) Awards outstanding as of March 31, 2020 111,705 We recognized $1.5 million of compensation expense for time-based restricted stock units for each of the three-month periods ended March 31, 2020 and 2019, respectively. Deferred Stock Units We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date. A summary of activity of the outstanding deferred stock units for the three months ended March 31, 2020 is presented below: Deferred Stock Units Awards outstanding as of December 31, 2019 7,150 Awards granted — Stock issued — Awards outstanding as of March 31, 2020 7,150 We recognized no compensation expense related to deferred stock units for each of the three-month periods ended March 31, 2020 and 2019, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt In February 2017, we entered into a secured five-year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the Third Amended Credit Agreement), which increased the principal amount of our revolving credit facility to up to $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, and provided an additional $175.0 million accordion feature. Borrowings may be used to finance working capital needs, for letters of credit and for general corporate purposes in the ordinary course of business, including the financing of permitted acquisitions (as defined in the Third Amended Credit Agreement). All obligations under the Third Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Third Amended Credit Agreement (the Guarantors). The obligations are also secured by a Third Amended and Restated Pledge and Security Agreement, dated as of February 17, 2017, entered into by us and the Guarantors which grants to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of the non-real estate assets of the Guarantors. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries. All revolving loans are due on the maturity date, February 17, 2022. Borrowings under the Third Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest at a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the Federal Reserve Bank of New York (NYFRB) rate in effect on such day plus ½ of 1% and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 137.5 to 175.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of March 31, 2020, the spread was 162.5 basis points. In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Third Amended Credit Agreement, we are required to pay a quarterly fee of 20 to 30 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Third Amended Credit Agreement. The Third Amended Credit Agreement contains customary representations, warranties, covenants, mandatory prepayments and events of default under which our payment obligations may be accelerated. If an event of default occurs, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings to be immediately due and payable together with accrued interest and fees. The financial covenants include requirements to maintain (1) a leverage ratio of no more than 3.25 to 1.00, subject to an election to increase the maximum leverage ratio to 3.50 to 1.00 for three fiscal quarters in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00. The Third Amended Credit Agreement generally permits us to pay cash dividends to our shareholders, provided that (i) no default or event of default has occurred and is continuing or would result from the dividend payment and (ii) our leverage ratio does not exceed 2.75 to 1.00. If our leverage ratio exceeds 2.75 to 1.00, we may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during the fiscal year, provided that no default or event of default has occurred and is continuing or would result from the payments. Our leverage ratio did not exceed 2.75 to 1.00 as of March 31, 2020. In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. We borrowed $150.0 million under our revolving credit facility as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the novel coronavirus (COVID-19) pandemic, during the three months ended March 31, 2020. We are not required to make any quarterly principal payments under the Third Amended Credit Agreement. We made no discretionary principal payments on our revolving credit facility during the three months ended March 31, 2020 and we made $5.0 million of discretionary principal payments during the three months ended March 31, 2019. We had $273.0 million in outstanding borrowings under our revolving credit facility as of March 31, 2020. We incurred interest expense on our outstanding debt, net of the impacts of our interest rate swap, of $1.2 million and $2.1 million for the three months ended March 31, 2020 and 2019, respectively. We incurred immaterial unused commitment fees for the three months ended March 31, 2020 and 2019. We had $1.0 million and $1.2 million of outstanding line of credit issuance costs as of March 31, 2020 and December 31, 2019, respectively, which will be amortized over the life of the Third Amended Credit Agreement. We recognized an immaterial amount of amortization expense for the three months ended March 31, 2020 and 2019, related to these deferred costs. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.4 million and $4.5 million as of March 31, 2020 and December 31, 2019, respectively. The finance lease right-of-use asset balance for this facility was $6.1 million and $6.3 million as of March 31, 2020 and December 31, 2019, respectively. Accumulated amortization related to this finance lease right-of-use asset was $3.8 million and $3.8 million as of March 31, 2020 and December 31, 2019, respectively. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of March 31, 2020 and December 31, 2019. Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three-month periods ended March 31, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three-month periods ended March 31, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three-month periods ended March 31, 2020 and 2019. We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term. Our expenses and payments for operating leases were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Operating leases expense $ 728 $ 718 Short-term leases expense $ 123 $ 39 Payments on operating lease obligations $ 746 $ 764 Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows: (Dollars in thousands) Location in Statements of Financial Position March 31, 2020 December 31, 2019 Finance lease right-of-use assets Property, plant and equipment, net $ 6,079 $ 6,280 Operating lease right-of-use assets Other long-term assets $ 5,072 $ 4,656 Finance lease obligations, current portion Other accrued liabilities $ 396 $ 400 Finance lease obligations, non-current portion Other long-term liabilities $ 3,963 $ 4,140 Total finance lease obligations $ 4,359 $ 4,540 Operating lease obligations, current portion Other accrued liabilities $ 2,401 $ 2,343 Operating lease obligations, non-current portion Other long-term liabilities $ 2,693 $ 2,334 Total operating lease obligations $ 5,094 $ 4,677 Net Future Minimum Lease Payments The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of March 31, 2020: Finance Operating (Dollars in thousands) Leases Leases Signed Less: Leases Not Yet Commenced Leases 2020 $ 394 $ 2,013 $ — $ 2,013 2021 4,121 1,867 — 1,867 2022 — 968 — 968 2023 — 390 — 390 2024 — 185 — 185 Thereafter — 5 — 5 Total lease payments 4,515 5,428 — 5,428 Less: Interest (156) (334) — (334) Present Value of Net Future Minimum Lease Payments $ 4,359 $ 5,094 $ — $ 5,094 The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments: Finance Operating Weighted Average Remaining Lease Term 1.3 years 2.6 years Weighted Average Discount Rate 3.00% 5.13% |
Leases | Leases We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.4 million and $4.5 million as of March 31, 2020 and December 31, 2019, respectively. The finance lease right-of-use asset balance for this facility was $6.1 million and $6.3 million as of March 31, 2020 and December 31, 2019, respectively. Accumulated amortization related to this finance lease right-of-use asset was $3.8 million and $3.8 million as of March 31, 2020 and December 31, 2019, respectively. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of March 31, 2020 and December 31, 2019. Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three-month periods ended March 31, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three-month periods ended March 31, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three-month periods ended March 31, 2020 and 2019. We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term. Our expenses and payments for operating leases were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Operating leases expense $ 728 $ 718 Short-term leases expense $ 123 $ 39 Payments on operating lease obligations $ 746 $ 764 Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows: (Dollars in thousands) Location in Statements of Financial Position March 31, 2020 December 31, 2019 Finance lease right-of-use assets Property, plant and equipment, net $ 6,079 $ 6,280 Operating lease right-of-use assets Other long-term assets $ 5,072 $ 4,656 Finance lease obligations, current portion Other accrued liabilities $ 396 $ 400 Finance lease obligations, non-current portion Other long-term liabilities $ 3,963 $ 4,140 Total finance lease obligations $ 4,359 $ 4,540 Operating lease obligations, current portion Other accrued liabilities $ 2,401 $ 2,343 Operating lease obligations, non-current portion Other long-term liabilities $ 2,693 $ 2,334 Total operating lease obligations $ 5,094 $ 4,677 Net Future Minimum Lease Payments The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of March 31, 2020: Finance Operating (Dollars in thousands) Leases Leases Signed Less: Leases Not Yet Commenced Leases 2020 $ 394 $ 2,013 $ — $ 2,013 2021 4,121 1,867 — 1,867 2022 — 968 — 968 2023 — 390 — 390 2024 — 185 — 185 Thereafter — 5 — 5 Total lease payments 4,515 5,428 — 5,428 Less: Interest (156) (334) — (334) Present Value of Net Future Minimum Lease Payments $ 4,359 $ 5,094 $ — $ 5,094 The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments: Finance Operating Weighted Average Remaining Lease Term 1.3 years 2.6 years Weighted Average Discount Rate 3.00% 5.13% |
Pension Benefits and Other Post
Pension Benefits and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Pension Benefit and Other Postretirement Benefits | Pension Benefits and Other Postretirement Benefits Pension and Other Postretirement Benefit Plans As of March 31, 2020, we had two qualified noncontributory defined benefit pension plans, the Rogers Corporation Employees’ Pension Plan (the Union Plan) and the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)), which were frozen and had ceased accruing benefits. The Merged Plan was terminated and substantially settled in late 2019, with remaining settlement efforts expected to be completed in the second quarter of 2020. There are no plans to terminate the Union Plan. Additionally, we sponsor other postretirement benefit plans, including multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31 st for each respective plan year. Pension Plan Termination & Settlement During the second quarter of 2019, following receipt of a determination letter from the Internal Revenue Service (IRS), we amended the Merged Plan to (a) terminate the Merged Plan (subject to discretionary approval by our Chief Executive Officer) and (b) add a lump sum distribution option in connection with the termination of the Merged Plan, if approved. We subsequently provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity. On October 17, 2019, our Chief Executive Officer approved the termination of the Merged Plan. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution, for $123.5 million, with a cash settlement date of October 24, 2019. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020. The lump sum distributions of $38.9 million were paid out prior to December 31, 2019. The Merged Plan paid an additional $1.3 million of monthly pension benefit payments subsequent to the annuity purchase date during the transition period ending December 31, 2019. As of March 31, 2020, the Merged Plan had sufficient assets to satisfy all transaction obligations and had $9.0 million of net assets remaining. In addition, we recorded a total non-cash pre-tax settlement charge in connection with the termination of the Merged Plan of $53.2 million during the fourth quarter of 2019. This settlement charge included the immediate recognition into expense of the related unrecognized losses within “Accumulated other comprehensive loss” on the consolidated statements of financial position as of the plan termination date. The settlement charge was recognized in “Pension settlement charges” in the consolidated statements of operations. We expect to incur an additional non-cash pre-tax settlement charge in connection with the remaining settlement efforts of the Merged Plan of approximately $0.7 million during the second quarter of 2020. Components of Net Periodic Benefit (Credit) Cost The components of net periodic benefit (credit) cost were as follows: Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2020 2019 2020 2019 Service cost $ — $ — $ 17 $ 18 Interest cost 231 1,784 10 15 Expected return of plan assets (393) (2,192) — — Amortization of prior service credit — — (28) (253) Amortization of net loss 114 454 — — Net periodic benefit (credit) cost $ (48) $ 46 $ (1) $ (220) Employer Contributions There were no required contributions to our qualified defined benefit pension plan for the three-month periods ended March 31, 2020 and 2019, and we are not required to make additional contributions to these plans for the remainder of 2020. No voluntary contributions were made to our qualified defined benefit pension plans for either of the three-month periods ended March 31, 2020 and 2019. As there is no funding requirement for the other postretirement benefit plans, we funded these benefit payments as incurred, which were immaterial for each of the three-month periods ended March 31, 2020 and 2019, using cash from operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are currently engaged in the following material environmental and legal proceedings: Voluntary Corrective Action Program Our location in Rogers, Connecticut is part of the Connecticut Voluntary Corrective Action Program (VCAP). As part of this program, we partnered with the Connecticut Department of Energy and Environmental Protection (CT DEEP) to determine the corrective actions to be taken at the site related to contamination issues. We evaluated this matter and completed internal due diligence work related to the site in the fourth quarter of 2015. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We incurred $1.7 million of aggregate remediation costs through March 31, 2020, and the accrual for future remediation efforts is $1.0 million. Asbestos Overview We, like many other industrial companies, have been named as a defendant in a number of lawsuits filed in courts across the country by persons alleging personal injury from exposure to products containing asbestos. We have never mined, milled, manufactured or marketed asbestos; rather, we made and provided to industrial users a limited number of products that contained encapsulated asbestos, but we stopped manufacturing these products in the late 1980s. Most of the claims filed against us involve numerous defendants, sometimes as many as several hundred. The following table summarizes the change in number of asbestos claims outstanding for the three months ended March 31, 2020: Asbestos Claims Claims outstanding as of January 1, 2020 592 New claims filed 20 Pending claims concluded (1) (38) Claims outstanding as of March 31, 2020 574 (1) For the three months ended March 31, 2020, 34 claims were dismissed and 4 claims were settled. Settlements totaled approximately $1.6 million for the three months ended March 31, 2020. Impact on Financial Statements We recognize a liability for asbestos-related contingencies that are probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos-related matters, we record asbestos-related insurance receivables that are deemed probable. The liability projection period covers all current and future indemnity and defense costs through 2064, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy. To date, the indemnity and defense costs of our asbestos-related product liability litigation have been substantially covered by insurance. Although we have exhausted coverage under some of our insurance policies, we believe that we have applicable primary, excess and/or umbrella coverage for claims arising with respect to most of the years during which we manufactured and marketed asbestos-containing products. In addition, we have entered into a cost sharing agreement with most of our primary, excess and umbrella insurance carriers to facilitate the ongoing administration and payment of claims covered by the carriers. The cost sharing agreement may be terminated by any party, but will continue until a party elects to terminate it. As of the filing date for this report, the agreement has not been terminated, and no carrier had informed us it intended to terminate the agreement. We expect to continue to exhaust individual primary, excess and umbrella coverages over time, and there is no assurance that such exhaustion will not accelerate due to additional claims, damages and settlements or that coverage will be available as expected. We are responsible for uninsured indemnity and defense costs, and we incurred an immaterial amount of expenses for the three months ended March 31, 2020 and 2019, respectively, related to such costs. The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income. Our projected asbestos-related liabilities and insurance receivables were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Asbestos-related liabilities $ 85,774 $ 85,880 Asbestos-related insurance receivables $ 78,316 $ 78,316 General In addition to the above issues, the nature and scope of our business brings us in regular contact with the general public and a variety of businesses and government agencies. Such activities inherently subject us to the possibility of litigation, including environmental and product liability matters that are defended and handled in the ordinary course of business. We have established accruals for matters for which management considers a loss to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective income tax rate was 20.6% and 14.2% for the three months ended March 31, 2020 and 2019, respectively. The increase from the first quarter of 2019 was primarily due to the decrease in current quarter reversals of reserves for uncertain tax positions and the decrease in excess tax deductions on stock-based compensation, partially offset by the beneficial impact of changes in valuation allowance against deferred tax assets associated with carried over research and development credits. The total amount of unrecognized tax benefits as of March 31, 2020 was $11.0 million, of which $10.6 million would affect our effective tax rate if recognized. We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of March 31, 2020, we had $0.9 million accrued for the payment of interest. We are subject to taxation in the U.S. and various state and foreign jurisdictions. With few exceptions, we are no longer subject to examinations by tax authorities for years prior to 2015. |
Operating Segment Information
Operating Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating Segment Information Our reporting structure is comprised of the following strategic operating segments: ACS, Elastomeric Material Solutions (EMS) and PES. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally. Our ACS operating segment designs, develops, manufactures and sells circuit materials and solutions enabling high-performance and high-reliability connectivity for applications in wireless infrastructure (e.g., power amplifiers, antennas and small cells), automotive (e.g., ADAS, telematics and thermal solutions), aerospace and defense (e.g. antenna systems, communication systems and phased array radar systems), connected devices (e.g., mobile internet devices and thermal solutions) and wired infrastructure (e.g., computing and IP infrastructure) markets. Our EMS operating segment designs, develops, manufactures and sells engineered material solutions for a wide variety of applications and markets. These include polyurethane and silicone materials used in cushioning, gasketing and sealing, and vibration management applications for general industrial, portable electronics, automotive, electric and hybrid electric vehicles (EV/HEV), mass transit, aerospace and defense, footwear and impact mitigation and printing markets; customized silicones used in flex heater and semiconductor thermal applications for general industrial, portable electronics, automotive, EV/HEV, mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive, EV/HEV and aerospace and defense markets. Our PES operating segment designs, develops, manufactures and sells ceramic substrate materials, busbars and cooling solutions for a variety of applications in EV/HEV, mass transit, clean energy (i.e. variable frequency drives, renewable energy), general industrial, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik ® trade name and our busbars under the ROLINX ® trade name. Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR ® trade name and our floats under our NITROPHYL ® trade name. The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total Three Months Ended March 31, 2020 Net sales - recognized over time $ — $ 2,827 $ 46,401 $ 3,650 $ 52,878 Net sales - recognized at a point in time 64,553 80,699 320 360 145,932 Total net sales $ 64,553 $ 83,526 $ 46,721 $ 4,010 $ 198,810 Operating income (loss) $ 5,462 $ 11,517 $ (684) $ 1,180 $ 17,475 Three Months Ended March 31, 2019 Net sales - recognized over time $ — $ 3,006 $ 59,602 $ 4,604 $ 67,212 Net sales - recognized at a point in time 80,470 89,756 212 2,148 172,586 Total net sales $ 80,470 $ 92,762 $ 59,814 $ 6,752 $ 239,798 Operating income $ 13,064 $ 13,431 $ 4,267 $ 2,038 $ 32,800 Net sales by operating segment and by geographic area was as follows: (Dollars in thousands) Net Sales (1) Region/Country Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total Three Months Ended March 31, 2020 United States $ 14,453 $ 38,567 $ 8,172 $ 979 $ 62,171 Other Americas 944 2,449 109 311 3,813 Total Americas 15,397 41,016 8,281 1,290 65,984 China 24,625 18,375 8,308 225 51,533 Other APAC 15,319 12,953 4,360 548 33,180 Total APAC 39,944 31,328 12,668 773 84,713 Germany 3,673 3,634 13,056 149 20,512 Other EMEA 5,539 7,548 12,716 1,798 27,601 Total EMEA 9,212 11,182 25,772 1,947 48,113 Total net sales $ 64,553 $ 83,526 $ 46,721 $ 4,010 $ 198,810 Three Months Ended March 31, 2019 United States $ 13,071 $ 43,465 $ 7,477 $ 1,290 $ 65,303 Other Americas 752 2,083 20 191 3,046 Total Americas 13,823 45,548 7,497 1,481 68,349 China 42,489 22,419 11,064 2,513 78,485 Other APAC 14,141 14,488 5,338 809 34,776 Total APAC 56,630 36,907 16,402 3,322 113,261 Germany 4,472 3,436 21,947 146 30,001 Other EMEA 5,545 6,871 13,968 1,803 28,187 Total EMEA 10,017 10,307 35,915 1,949 58,188 Total net sales $ 80,470 $ 92,762 $ 59,814 $ 6,752 $ 239,798 (1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated. Revenue from Contracts with Customers We have contract assets primarily related to unbilled revenue for revenue recognized related to products that are deemed to have no alternative use whereby we have the right to payment. Revenue is recognized in advance of billing to the customer in these circumstances as billing is typically performed at the time of shipment to the customer. The unbilled revenue is included in contract assets on the condensed consolidated statements of financial position. Contract assets by operating segment were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Advanced Connectivity Solutions $ — $ — Elastomeric Material Solutions 1,207 1,077 Power Electronics Solutions 17,456 19,471 Other 1,515 1,907 Total contract assets $ 20,178 $ 22,455 We did not have any contract liabilities as of March 31, 2020 or December 31, 2019. No impairment losses were recognized for either of the three-month periods ended March 31, 2020 and 2019, respectively, on any receivables or contract assets arising from our contracts with customers. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Income Statement Elements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Restructuring and Impairment Charges The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Restructuring Charges $ — $ 806 Impairment charges — 16 Total restructuring and impairment charges $ — $ 822 Restructuring Charges In 2018, we made the decision to consolidate our Santa Fe Springs, California operations into our facilities in Carol Stream, Illinois and Bear, Delaware, which was completed as of December 31, 2019. We recorded $0.8 million of expense for the three months ended March 31, 2019 related to this facility consolidation. Other Operating Expense, Net The components of “Other operating expense, net” line item in the condensed consolidated statements of operations, were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Lease income $ — $ (547) Depreciation on leased assets — 1,185 Loss on sale or disposal of property, plant and equipment 20 273 Total other operating expense, net $ 20 $ 911 In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola USA (Isola) in August 2018, we recognized lease income and related depreciation on leased assets of $0.5 million and $1.2 million, respectively, for the three months ended March 31, 2019. Interest Expense, Net The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Interest on revolving credit facility $ 1,079 $ 2,251 Interest rate swap settlements 86 (122) Line of credit fees 166 126 Debt issuance amortization costs 138 138 Interest on finance leases 33 32 Interest income (320) (489) Other 25 2 Total interest expense, net $ 1,207 $ 1,938 |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Recently Issued Standards In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Recently Adopted Standards Reflected in Our 2020 Financial Statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our condensed consolidated financial statements. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Issued Standards and Recently Adopted Standards Reflected in Our 2019 Financial Statements | Recently Issued Standards In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Recently Adopted Standards Reflected in Our 2020 Financial Statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our condensed consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis, Categorized by the Level of Inputs Used in the Valuation | Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows: Derivative Instruments at Fair Value as of March 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total (1) Foreign currency contracts $ — $ (120) $ — $ (120) Copper derivative contracts $ — $ 341 $ — $ 341 Interest rate swap contract $ — $ (2,944) $ — $ (2,944) Derivative Instruments at Fair Value as of December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total (1) Foreign currency contracts $ — $ (6) $ — $ (6) Copper derivative contracts $ — $ 1,147 $ — $ 1,147 Interest rate swap contract $ — $ (1,254) $ — $ (1,254) (1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position, except the 2020 and 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item. |
Hedging Transactions and Deri_2
Hedging Transactions and Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2020, the notional values of the remaining foreign currency forward contracts were as follows: Notional Values of Foreign Currency Derivatives USD/CNH $ 20,439,416 EUR/USD € 13,510,979 KRW/USD ₩ 9,669,600,000 JPY/EUR ¥ 360,000,000 As of March 31, 2020, the volume of our copper contracts outstanding was as follows: Volume of Copper Derivatives April 2020 - June 2020 202 metric tons per month July 2020 - September 2020 201 metric tons per month October 2020 - December 2020 201 metric tons per month January 2021 - March 2021 256 metric tons per month April 2021 - June 2021 256 metric tons per month |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows: Three Months Ended (Dollars in thousands) Financial Statement Line Item March 31, 2020 March 31, 2019 Foreign Currency Contracts Contracts not designated as hedging instruments Other (expense) income, net $ (528) $ (711) Copper Derivative Contracts Contracts not designated as hedging instruments Other (expense) income, net $ (1,135) $ 310 Interest Rate Swap Contract designated as hedging instrument Other comprehensive loss $ (1,690) $ (632) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Balances Related to Each Component of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component were as follows: (Dollars and accompanying footnotes in thousands) Foreign Currency Translation Adjustments Pension and Other Postretirement Benefits (1) Derivative Instrument Designated as Cash Flow Hedge (2) Total Balance as of December 31, 2019 $ (35,478) $ (10,455) $ (972) $ (46,905) Other comprehensive loss before reclassifications (6,894) — (1,249) (8,143) Amounts reclassified from accumulated other comprehensive loss — 66 (67) (1) Net current-period other comprehensive income (loss) (6,894) 66 (1,316) (8,144) Balance as of March 31, 2020 $ (42,372) $ (10,389) $ (2,288) $ (55,049) Balance as of December 31, 2018 $ (30,488) $ (48,700) $ 354 $ (78,834) Other comprehensive loss before reclassifications (4,257) — (394) (4,651) Amounts reclassified from accumulated other comprehensive loss — 156 (94) 62 Net current-period other comprehensive income (loss) (4,257) 156 (488) (4,589) Balance as of March 31, 2019 $ (34,745) $ (48,544) $ (134) $ (83,423) (1) Net of taxes of $2,349 and $2,368 as of March 31, 2020 and December 31, 2019, respectively. Net of taxes of $9,938 and $9,984 as of March 31, 2019 and December 31, 2018, respectively. (2) Net of taxes of $656 and $282 as of March 31, 2020 and December 31, 2019, respectively. Net of taxes of $37 and $(106) as of March 31, 2019 and December 31, 2018, respectively. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, which are valued at the lower of cost or net realizable value, consisted of the following: (Dollars in thousands) March 31, 2020 December 31, 2019 Raw materials $ 62,004 $ 61,338 Work-in-process 29,999 30,043 Finished goods 35,514 41,478 Total inventories $ 127,517 $ 132,859 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the net carrying amount of goodwill by operating segment were as follows: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total December 31, 2019 $ 51,694 $ 142,030 $ 66,982 $ 2,224 $ 262,930 Foreign currency translation adjustment — (788) (1,272) — $ (2,060) March 31, 2020 $ 51,694 $ 141,242 $ 65,710 $ 2,224 $ 260,870 |
Schedule of Intangible Assets | The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 148,844 $ 40,546 $ 108,298 $ 149,317 $ 39,018 $ 110,299 Technology 80,368 46,168 34,200 80,938 45,190 35,748 Trademarks and trade names 11,958 4,555 7,403 11,994 4,361 7,633 Covenants not to compete 1,340 585 755 1,340 505 835 Total definite-lived other intangible assets 242,510 91,854 150,656 243,589 89,074 154,515 Indefinite-lived other intangible asset 4,348 — 4,348 4,432 — 4,432 Total other intangible assets $ 246,858 $ 91,854 $ 155,004 $ 248,021 $ 89,074 $ 158,947 |
Schedule of Weighted Average Amortization Period, by Intangible Asset Class | The weighted average amortization period as of March 31, 2020, by definite-lived other intangible asset class, was as follows: Definite-Lived Other Intangible Asset Class Weighted Average Remaining Amortization Period Customer relationships 7.2 years Technology 4.1 years Trademarks and trade names 4.8 years Covenants not to compete 1.5 years Total definite-lived other intangible assets 6.3 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: (Dollars and shares in thousands, except per share amounts) Three Months Ended March 31, 2020 March 31, 2019 Numerator: Net income $ 13,259 $ 28,399 Denominator: Weighted-average shares outstanding - basic 18,669 18,557 Effect of dilutive shares 22 135 Weighted-average shares outstanding - diluted 18,691 18,692 Basic earnings per share $ 0.71 $ 1.53 Diluted earnings per share $ 0.71 $ 1.52 |
Capital Stock and Equity Comp_2
Capital Stock and Equity Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions Used in Calculation of Fair Value | The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2020 and 2019: February 12, 2020 June 3, 2019 February 7, 2019 Expected volatility 41.0% 39.7% 36.7% Expected term (in years) 2.9 2.6 2.9 Risk-free interest rate 1.41% 1.78% 2.43% |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activities | A summary of activity of the outstanding performance-based restricted stock units for the three months ended March 31, 2020 is presented below: Performance-Based Awards outstanding as of December 31, 2019 106,943 Awards granted 87,244 Stock issued (75,486) Awards forfeited (774) Awards outstanding as of March 31, 2020 117,927 |
Time-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activities | A summary of activity of the outstanding time-based restricted stock units for the three months ended March 31, 2020 is presented below: Time-Based Awards outstanding as of December 31, 2019 101,685 Awards granted 57,387 Stock issued (46,220) Awards forfeited (1,147) Awards outstanding as of March 31, 2020 111,705 |
Deferred Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activities | A summary of activity of the outstanding deferred stock units for the three months ended March 31, 2020 is presented below: Deferred Stock Units Awards outstanding as of December 31, 2019 7,150 Awards granted — Stock issued — Awards outstanding as of March 31, 2020 7,150 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Our expenses and payments for operating leases were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Operating leases expense $ 728 $ 718 Short-term leases expense $ 123 $ 39 Payments on operating lease obligations $ 746 $ 764 The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments: Finance Operating Weighted Average Remaining Lease Term 1.3 years 2.6 years Weighted Average Discount Rate 3.00% 5.13% |
Assets and Liabilities Balance Related to Finance and Operating Leases | Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows: (Dollars in thousands) Location in Statements of Financial Position March 31, 2020 December 31, 2019 Finance lease right-of-use assets Property, plant and equipment, net $ 6,079 $ 6,280 Operating lease right-of-use assets Other long-term assets $ 5,072 $ 4,656 Finance lease obligations, current portion Other accrued liabilities $ 396 $ 400 Finance lease obligations, non-current portion Other long-term liabilities $ 3,963 $ 4,140 Total finance lease obligations $ 4,359 $ 4,540 Operating lease obligations, current portion Other accrued liabilities $ 2,401 $ 2,343 Operating lease obligations, non-current portion Other long-term liabilities $ 2,693 $ 2,334 Total operating lease obligations $ 5,094 $ 4,677 |
Finance Lease, Liability, Maturity | The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of March 31, 2020: Finance Operating (Dollars in thousands) Leases Leases Signed Less: Leases Not Yet Commenced Leases 2020 $ 394 $ 2,013 $ — $ 2,013 2021 4,121 1,867 — 1,867 2022 — 968 — 968 2023 — 390 — 390 2024 — 185 — 185 Thereafter — 5 — 5 Total lease payments 4,515 5,428 — 5,428 Less: Interest (156) (334) — (334) Present Value of Net Future Minimum Lease Payments $ 4,359 $ 5,094 $ — $ 5,094 |
Operating Lease, Liability, Maturity | The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of March 31, 2020: Finance Operating (Dollars in thousands) Leases Leases Signed Less: Leases Not Yet Commenced Leases 2020 $ 394 $ 2,013 $ — $ 2,013 2021 4,121 1,867 — 1,867 2022 — 968 — 968 2023 — 390 — 390 2024 — 185 — 185 Thereafter — 5 — 5 Total lease payments 4,515 5,428 — 5,428 Less: Interest (156) (334) — (334) Present Value of Net Future Minimum Lease Payments $ 4,359 $ 5,094 $ — $ 5,094 |
Pension Benefits and Other Po_2
Pension Benefits and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit (credit) cost were as follows: Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2020 2019 2020 2019 Service cost $ — $ — $ 17 $ 18 Interest cost 231 1,784 10 15 Expected return of plan assets (393) (2,192) — — Amortization of prior service credit — — (28) (253) Amortization of net loss 114 454 — — Net periodic benefit (credit) cost $ (48) $ 46 $ (1) $ (220) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table summarizes the change in number of asbestos claims outstanding for the three months ended March 31, 2020: Asbestos Claims Claims outstanding as of January 1, 2020 592 New claims filed 20 Pending claims concluded (1) (38) Claims outstanding as of March 31, 2020 574 (1) For the three months ended March 31, 2020, 34 claims were dismissed and 4 claims were settled. Settlements totaled approximately $1.6 million for the three months ended March 31, 2020. |
Schedule of Asbestos-Related Claims and Insurance Receivables | Our projected asbestos-related liabilities and insurance receivables were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Asbestos-related liabilities $ 85,774 $ 85,880 Asbestos-related insurance receivables $ 78,316 $ 78,316 |
Operating Segment Information (
Operating Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total Three Months Ended March 31, 2020 Net sales - recognized over time $ — $ 2,827 $ 46,401 $ 3,650 $ 52,878 Net sales - recognized at a point in time 64,553 80,699 320 360 145,932 Total net sales $ 64,553 $ 83,526 $ 46,721 $ 4,010 $ 198,810 Operating income (loss) $ 5,462 $ 11,517 $ (684) $ 1,180 $ 17,475 Three Months Ended March 31, 2019 Net sales - recognized over time $ — $ 3,006 $ 59,602 $ 4,604 $ 67,212 Net sales - recognized at a point in time 80,470 89,756 212 2,148 172,586 Total net sales $ 80,470 $ 92,762 $ 59,814 $ 6,752 $ 239,798 Operating income $ 13,064 $ 13,431 $ 4,267 $ 2,038 $ 32,800 Net sales by operating segment and by geographic area was as follows: (Dollars in thousands) Net Sales (1) Region/Country Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total Three Months Ended March 31, 2020 United States $ 14,453 $ 38,567 $ 8,172 $ 979 $ 62,171 Other Americas 944 2,449 109 311 3,813 Total Americas 15,397 41,016 8,281 1,290 65,984 China 24,625 18,375 8,308 225 51,533 Other APAC 15,319 12,953 4,360 548 33,180 Total APAC 39,944 31,328 12,668 773 84,713 Germany 3,673 3,634 13,056 149 20,512 Other EMEA 5,539 7,548 12,716 1,798 27,601 Total EMEA 9,212 11,182 25,772 1,947 48,113 Total net sales $ 64,553 $ 83,526 $ 46,721 $ 4,010 $ 198,810 Three Months Ended March 31, 2019 United States $ 13,071 $ 43,465 $ 7,477 $ 1,290 $ 65,303 Other Americas 752 2,083 20 191 3,046 Total Americas 13,823 45,548 7,497 1,481 68,349 China 42,489 22,419 11,064 2,513 78,485 Other APAC 14,141 14,488 5,338 809 34,776 Total APAC 56,630 36,907 16,402 3,322 113,261 Germany 4,472 3,436 21,947 146 30,001 Other EMEA 5,545 6,871 13,968 1,803 28,187 Total EMEA 10,017 10,307 35,915 1,949 58,188 Total net sales $ 80,470 $ 92,762 $ 59,814 $ 6,752 $ 239,798 (1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated. Contract assets by operating segment were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Advanced Connectivity Solutions $ — $ — Elastomeric Material Solutions 1,207 1,077 Power Electronics Solutions 17,456 19,471 Other 1,515 1,907 Total contract assets $ 20,178 $ 22,455 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Income Statement Elements [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Restructuring Charges $ — $ 806 Impairment charges — 16 Total restructuring and impairment charges $ — $ 822 |
Schedule Of Income Statement Supplemental Disclosures | The components of “Other operating expense, net” line item in the condensed consolidated statements of operations, were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Lease income $ — $ (547) Depreciation on leased assets — 1,185 Loss on sale or disposal of property, plant and equipment 20 273 Total other operating expense, net $ 20 $ 911 |
Interest Income and Interest Expense Disclosure | The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Interest on revolving credit facility $ 1,079 $ 2,251 Interest rate swap settlements 86 (122) Line of credit fees 166 126 Debt issuance amortization costs 138 138 Interest on finance leases 33 32 Interest income (320) (489) Other 25 2 Total interest expense, net $ 1,207 $ 1,938 |
Fair Value Measurements (Variou
Fair Value Measurements (Various Instruments That Require Fair Value Measurement) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | $ (120) | $ (6) |
Foreign currency contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Foreign currency contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | (120) | (6) |
Foreign currency contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Copper derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 341 | 1,147 |
Copper derivative contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Copper derivative contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 341 | 1,147 |
Copper derivative contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Interest rate swap contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | (2,944) | (1,254) |
Interest rate swap contract | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Interest rate swap contract | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | (2,944) | (1,254) |
Interest rate swap contract | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | $ 0 | $ 0 |
Hedging Transactions and Deri_3
Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)Contract | Mar. 31, 2017USD ($) | Feb. 28, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount expected to be reclassified from accumulated other comprehensive income into earnings in the next twelve months | $ 1,400,000 | ||
Bank Term Loan | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of derivative contracts related to minimizing risk associated with potential rise in copper prices (in contracts) | Contract | 30 | ||
Third Amended Credit Agreement | Revolving Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum borrowing capacity | $ 450,000,000 | ||
Interest rate swap contract | Third Amended Credit Agreement | Revolving Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged balance on debt instrument | $ 75,000,000 |
Hedging Transactions and Deri_4
Hedging Transactions and Derivative Financial Instruments (Notional Values of Derivative Instruments) (Details) | Mar. 31, 2020USD ($)tons_per_month | Mar. 31, 2020JPY (¥)tons_per_month | Mar. 31, 2020EUR (€)tons_per_month | Mar. 31, 2020KRW (₩)tons_per_month |
Contracts not designated as hedging instruments | USD/CNH | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | $ | $ 20,439,416 | |||
Contracts not designated as hedging instruments | EUR/USD | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | € | € 13,510,979 | |||
Contracts not designated as hedging instruments | KRW/USD | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | â‚© | â‚© 9,669,600,000 | |||
Contracts not designated as hedging instruments | JPY/EUR | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | ÂĄ | ÂĄ 360,000,000 | |||
Contract designated as hedging instrument | April 2020 - June 2020 | ||||
Derivative [Line Items] | ||||
Volume of Copper Derivatives (in metric tons per month) | 202 | 202 | 202 | 202 |
Contract designated as hedging instrument | July 2020 - September 2020 | ||||
Derivative [Line Items] | ||||
Volume of Copper Derivatives (in metric tons per month) | 201 | 201 | 201 | 201 |
Contract designated as hedging instrument | October 2020 - December 2020 | ||||
Derivative [Line Items] | ||||
Volume of Copper Derivatives (in metric tons per month) | 201 | 201 | 201 | 201 |
Contract designated as hedging instrument | January 2021 - March 2021 | ||||
Derivative [Line Items] | ||||
Volume of Copper Derivatives (in metric tons per month) | 256 | 256 | 256 | 256 |
Contract designated as hedging instrument | April 2021 - June 2021 | ||||
Derivative [Line Items] | ||||
Volume of Copper Derivatives (in metric tons per month) | 256 | 256 | 256 | 256 |
Hedging Transactions and Deri_5
Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Derivative, gain (loss) on derivative, net | $ (86) | $ 122 |
Contracts not designated as hedging instruments | Other (expense) income, net | Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Derivative, gain (loss) on derivative, net | (528) | (711) |
Contracts not designated as hedging instruments | Other (expense) income, net | Copper Derivative Contracts | ||
Derivative [Line Items] | ||
Derivative, gain (loss) on derivative, net | (1,135) | 310 |
Contract designated as hedging instrument | Other comprehensive loss | Interest rate swap contract | ||
Derivative [Line Items] | ||
Derivative, gain (loss) on derivative, net | $ (1,690) | $ (632) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of period | $ 933,900 | |||
Net current-period other comprehensive income (loss) | (8,144) | $ (4,589) | ||
Balance, end of period | 937,809 | 868,322 | ||
AOCI, pension and other postretirement benefit plans, tax benefits (expense) | 2,349 | 9,938 | $ 2,368 | $ 9,984 |
AOCI, cumulative changes in net gain (loss) from cash flow hedges, tax benefit (expense) | 656 | 37 | $ 282 | $ (106) |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of period | (35,478) | (30,488) | ||
Other comprehensive loss before reclassifications | (6,894) | (4,257) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net current-period other comprehensive income (loss) | (6,894) | (4,257) | ||
Balance, end of period | (42,372) | (34,745) | ||
Pension and Other Postretirement Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of period | (10,455) | (48,700) | ||
Other comprehensive loss before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 66 | 156 | ||
Net current-period other comprehensive income (loss) | 66 | 156 | ||
Balance, end of period | (10,389) | (48,544) | ||
Derivative Instrument Designated as Cash Flow Hedge | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of period | (972) | 354 | ||
Other comprehensive loss before reclassifications | (1,249) | (394) | ||
Amounts reclassified from accumulated other comprehensive loss | (67) | (94) | ||
Net current-period other comprehensive income (loss) | (1,316) | (488) | ||
Balance, end of period | (2,288) | (134) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of period | (46,905) | (78,834) | ||
Other comprehensive loss before reclassifications | (8,143) | (4,651) | ||
Amounts reclassified from accumulated other comprehensive loss | (1) | 62 | ||
Net current-period other comprehensive income (loss) | (8,144) | (4,589) | ||
Balance, end of period | $ (55,049) | $ (83,423) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 62,004 | $ 61,338 |
Work-in-process | 29,999 | 30,043 |
Finished goods | 35,514 | 41,478 |
Total inventories | $ 127,517 | $ 132,859 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 262,930 |
Foreign currency translation adjustment | (2,060) |
Goodwill, ending balance | 260,870 |
Advanced Connectivity Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 51,694 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | 51,694 |
Elastomeric Material Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 142,030 |
Foreign currency translation adjustment | (788) |
Goodwill, ending balance | 141,242 |
Power Electronics Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 66,982 |
Foreign currency translation adjustment | (1,272) |
Goodwill, ending balance | 65,710 |
Other | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 2,224 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | $ 2,224 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 242,510 | $ 243,589 |
Indefinite-lived other intangible asset | 4,348 | 4,432 |
Total other intangible assets, gross carrying amount | 246,858 | 248,021 |
Accumulated Amortization | 91,854 | 89,074 |
Net Carrying Amount | 150,656 | 154,515 |
Total other intangible assets, net carrying amount | 155,004 | 158,947 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 148,844 | 149,317 |
Accumulated Amortization | 40,546 | 39,018 |
Net Carrying Amount | 108,298 | 110,299 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 80,368 | 80,938 |
Accumulated Amortization | 46,168 | 45,190 |
Net Carrying Amount | 34,200 | 35,748 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,958 | 11,994 |
Accumulated Amortization | 4,555 | 4,361 |
Net Carrying Amount | 7,403 | 7,633 |
Covenants not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,340 | 1,340 |
Accumulated Amortization | 585 | 505 |
Net Carrying Amount | $ 755 | $ 835 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 3.7 | $ 4.4 |
Annual Future Amortization Expense | ||
Anticipated future amortization expense for the remainder of 2020 | 10.9 | |
Anticipated future amortization expense for 2021 | 13.8 | |
Anticipated future amortization expense for 2022 | 13.3 | |
Anticipated future amortization expense for 2023 | 12.7 | |
Anticipated future amortization expense for 2024 | $ 11.4 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Weighted Average Amortization Period by Intangible Asset Class (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 6 years 3 months 18 days |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 7 years 2 months 12 days |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 4 years 1 month 6 days |
Trademarks and trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 4 years 9 months 18 days |
Covenants not to compete | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 1 year 6 months |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income | $ 13,259 | $ 28,399 |
Denominator: | ||
Weighted-average shares outstanding - basic (in shares) | 18,669,000 | 18,557,000 |
Effect of dilutive shares (in shares) | 22,000 | 135,000 |
Weighted-average shares outstanding - dilutive (in shares) | 18,691,000 | 18,692,000 |
Basic earnings per share (in dollars per share) | $ 0.71 | $ 1.53 |
Diluted earnings per share (in dollars per share) | $ 0.71 | $ 1.52 |
Anti-dilutive shares excluded (in shares) | 127,106 | 23,081 |
Capital Stock and Equity Comp_3
Capital Stock and Equity Compensation (Additional Information) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock award program, measurement period (years) | 3 years | |
Expected dividend yield (percent) | 0.00% | |
Compensation expense | $ 1,500,000 | $ 900,000 |
Performance-Based Restricted Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock award program, awarded shares as a percentage of the original award amount (percent) | 0.00% | |
Performance-Based Restricted Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock award program, awarded shares as a percentage of the original award amount (percent) | 200.00% | |
Time-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 1,500,000 | 1,500,000 |
Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 0 | $ 0 |
Conversion ratio | 1 | |
Vesting period | 13 months |
Capital Stock and Equity Comp_4
Capital Stock and Equity Compensation (Monte Carlo Calculation Assumptions) (Details) - Performance-Based Restricted Stock Units | Feb. 12, 2020 | Jun. 03, 2019 | Feb. 07, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (percent) | 41.00% | 39.70% | 36.70% |
Expected term (in years) | 2 years 10 months 24 days | 2 years 7 months 6 days | 2 years 10 months 24 days |
Risk-free interest rate (percent) | 1.41% | 1.78% | 2.43% |
Capital Stock and Equity Comp_5
Capital Stock and Equity Compensation (Performance-Based Restricted Stock Awards) (Details) - Performance-Based Restricted Stock Units | 3 Months Ended |
Mar. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Awards outstanding beginning balance (shares) | 106,943 |
Awards granted (shares) | 87,244 |
Stock issued (shares) | (75,486) |
Awards forfeited (shares) | (774) |
Awards outstanding ending balance (shares) | 117,927 |
Capital Stock and Equity Comp_6
Capital Stock and Equity Compensation (Time-Based Restricted Stock Awards) (Details) - Time-Based Restricted Stock Units | 3 Months Ended |
Mar. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Awards outstanding beginning balance (shares) | 101,685 |
Awards granted (shares) | 57,387 |
Stock issued (shares) | (46,220) |
Awards forfeited (shares) | (1,147) |
Awards outstanding ending balance (shares) | 111,705 |
Capital Stock and Equity Comp_7
Capital Stock and Equity Compensation (Deferred Stock Units) (Details) - Deferred Stock Units | 3 Months Ended |
Mar. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Awards outstanding beginning balance (shares) | 7,150 |
Awards granted (shares) | 0 |
Stock issued (shares) | 0 |
Awards outstanding ending balance (shares) | 7,150 |
Debt (Additional Information) (
Debt (Additional Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | |
Debt Instrument [Line Items] | ||||||
Debt instrument, leverage ratio, maximum | 2.75 | |||||
Borrowings under revolving credit facility | $ 273,000,000 | $ 123,000,000 | ||||
Interest expense incurred on outstanding debt | 1,200,000 | $ 2,100,000 | ||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Dividends | $ 20,000,000 | |||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate lower range basis spread | 0.375% | |||||
Variable rate higher range basis spread | 0.75% | |||||
Third Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 3.25 | |||||
One-time leverage ratio maximum option | 3.50 | |||||
ICR covenant limit | 3 | |||||
Discretionary principal payments on revolving credit facility | 0 | |||||
Eurocurrency loans | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, LIBOR rate, minimum spread | 1.375% | |||||
Line of credit, LIBOR rate, maximum spread | 1.75% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings | 150,000,000 | |||||
Revolving Credit Facility | Third Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 5 years | |||||
Maximum borrowing capacity | $ 450,000,000 | |||||
Additional borrowing capacity | $ 175,000,000 | |||||
Revolving Credit Facility | Third Amended Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.20% | |||||
Revolving Credit Facility | Third Amended Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.30% | |||||
Third Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Discretionary principal payments on revolving credit facility | $ 5,000,000 | |||||
Outstanding line of credit issuance costs | $ 1,000,000 | $ 1,200,000 | ||||
Interest rate swap contract | Revolving Credit Facility | Third Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Hedged balance on debt instrument | $ 75,000,000 | |||||
Federal Funds Rate | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
London Interbank Offered Rate (LIBOR) | Third Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.625% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Finance lease obligation | $ 4,359 | $ 4,540 |
Finance lease right-of-use assets | 6,079 | 6,280 |
Germany | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligation | 4,400 | 4,500 |
Finance lease right-of-use assets | 6,100 | 6,300 |
Finance lease, right-of-use asset, amortization | $ 3,800 | $ 3,800 |
Leases (Lease Expenses) (Detail
Leases (Lease Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating leases expense | $ 728 | $ 718 |
Short-term leases expense | 123 | 39 |
Payments on operating lease obligations | $ 746 | $ 764 |
Leases (Assets and Liabilities
Leases (Assets and Liabilities Balance Related to Finance and Operating Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Finance lease right-of-use assets | $ 6,079 | $ 6,280 |
Operating lease right-of-use assets | 5,072 | 4,656 |
Finance lease obligations, current portion | 396 | 400 |
Finance lease obligations, non-current portion | 3,963 | 4,140 |
Total finance lease obligations | 4,359 | 4,540 |
Operating lease obligations, current portion | 2,401 | 2,343 |
Operating lease obligations, non-current portion | 2,693 | 2,334 |
Total operating lease obligations | $ 5,094 | $ 4,677 |
Leases (Lease Payments) (Detail
Leases (Lease Payments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2020 | $ 394 | |
2021 | 4,121 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 4,515 | |
Less: Interest | (156) | |
Present Value of Net Future Minimum Lease Payments | 4,359 | $ 4,540 |
Operating Leases Signed | ||
2020 | 2,013 | |
2021 | 1,867 | |
2022 | 968 | |
2023 | 390 | |
2024 | 185 | |
Thereafter | 5 | |
Total lease payments | 5,428 | |
Less: Interest | (334) | |
Present Value of Net Future Minimum Lease Payments | 5,094 | |
Operating Less: Leases Not Yet Commenced | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 0 | |
Less: Interest | 0 | |
Present Value of Net Future Minimum Lease Payments | 0 | |
Operating Leases | ||
2020 | 2,013 | |
2021 | 1,867 | |
2022 | 968 | |
2023 | 390 | |
2024 | 185 | |
Thereafter | 5 | |
Total lease payments | 5,428 | |
Less: Interest | (334) | |
Total operating lease obligations | $ 5,094 | $ 4,677 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Finance leases, weighted average remaining lease term | 1 year 3 months 18 days |
Finance leases, weighted average discount rate (percent) | 3.00% |
Operating leases, weighted average remaining lease term | 2 years 7 months 6 days |
Operating leases, weighted average discount rate (percent) | 5.13% |
Pension Benefits and Other Po_3
Pension Benefits and Other Postretirement Benefits (Additional Information) (Details) | Oct. 17, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)plan |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of qualified noncontributory defined benefit plans | plan | 2 | |||||||
Pension assets | $ 12,790,000 | $ 12,790,000 | $ 12,954,000 | $ 12,790,000 | $ 12,790,000 | |||
Voluntary contributions | 0 | $ 0 | ||||||
Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Payment for settlement | $ 123,500,000 | $ 1,300,000 | ||||||
Lump sum distributions | $ 38,900,000 | |||||||
Pension assets | $ 9,000,000 | |||||||
Settlement charge | $ (53,200,000) | |||||||
Pension Benefits | Forecast | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected future settlement charges | $ 700,000 |
Pension Benefits and Other Po_4
Pension Benefits and Other Postretirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 231 | 1,784 |
Expected return of plan assets | (393) | (2,192) |
Amortization of prior service credit | 0 | 0 |
Amortization of net loss | 114 | 454 |
Net periodic benefit (credit) cost | (48) | 46 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 17 | 18 |
Interest cost | 10 | 15 |
Expected return of plan assets | 0 | 0 |
Amortization of prior service credit | (28) | (253) |
Amortization of net loss | 0 | 0 |
Net periodic benefit (credit) cost | $ (1) | $ (220) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)claim | |
Loss Contingencies [Line Items] | |
Number of claims settled | claim | 4 |
Connecticut Voluntary Corrective Action Program | |
Loss Contingencies [Line Items] | |
Environmental remediation expense incurred | $ 1.7 |
Estimated total cleanup costs, accrual | $ 1 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Loss Contingencies) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)claim | |
Liability for Asbestos and Environmental Claims [Roll Forward] | |
Claims outstanding as of January 1, 2020 | 592 |
New claims filed | 20 |
Pending claims concluded | (38) |
Claims outstanding as of March 31, 2020 | 574 |
Number of claims dismissed | 34 |
Number of claims settled | 4 |
Settlements | $ | $ 1.6 |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Total Estimated Liability for Asbestos) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Asbestos-related claims | $ 85,774 | $ 85,880 |
Asbestos-related insurance receivables | $ 78,316 | $ 78,316 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percent) | 20.60% | 14.20% |
Unrecognized tax benefits | $ 11 | |
Unrecognized tax benefits that would decrease the effective tax rate if recognized | 10.6 | |
Unrecognized tax benefits, penalties accrued | $ 0.9 |
Operating Segment Information_2
Operating Segment Information (Income by Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 198,810 | $ 239,798 |
Operating income | 17,475 | 32,800 |
Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 64,553 | 80,470 |
Operating income | 5,462 | 13,064 |
Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 83,526 | 92,762 |
Operating income | 11,517 | 13,431 |
Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 46,721 | 59,814 |
Operating income | (684) | 4,267 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4,010 | 6,752 |
Operating income | 1,180 | 2,038 |
Recognized over time | ||
Segment Reporting Information [Line Items] | ||
Net sales | 52,878 | 67,212 |
Recognized over time | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Recognized over time | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,827 | 3,006 |
Recognized over time | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 46,401 | 59,602 |
Recognized over time | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,650 | 4,604 |
Recognized at a point in time | ||
Segment Reporting Information [Line Items] | ||
Net sales | 145,932 | 172,586 |
Recognized at a point in time | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 64,553 | 80,470 |
Recognized at a point in time | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 80,699 | 89,756 |
Recognized at a point in time | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 320 | 212 |
Recognized at a point in time | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 360 | 2,148 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 62,171 | 65,303 |
United States | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 14,453 | 13,071 |
United States | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 38,567 | 43,465 |
United States | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,172 | 7,477 |
United States | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 979 | 1,290 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,813 | 3,046 |
Other Americas | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 944 | 752 |
Other Americas | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,449 | 2,083 |
Other Americas | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 109 | 20 |
Other Americas | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 311 | 191 |
Total Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 65,984 | 68,349 |
Total Americas | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 15,397 | 13,823 |
Total Americas | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 41,016 | 45,548 |
Total Americas | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,281 | 7,497 |
Total Americas | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,290 | 1,481 |
China | ||
Segment Reporting Information [Line Items] | ||
Net sales | 51,533 | 78,485 |
China | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 24,625 | 42,489 |
China | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 18,375 | 22,419 |
China | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,308 | 11,064 |
China | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 225 | 2,513 |
Other APAC | ||
Segment Reporting Information [Line Items] | ||
Net sales | 33,180 | 34,776 |
Other APAC | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 15,319 | 14,141 |
Other APAC | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 12,953 | 14,488 |
Other APAC | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4,360 | 5,338 |
Other APAC | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 548 | 809 |
Total APAC | ||
Segment Reporting Information [Line Items] | ||
Net sales | 84,713 | 113,261 |
Total APAC | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 39,944 | 56,630 |
Total APAC | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31,328 | 36,907 |
Total APAC | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 12,668 | 16,402 |
Total APAC | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 773 | 3,322 |
Germany | ||
Segment Reporting Information [Line Items] | ||
Net sales | 20,512 | 30,001 |
Germany | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,673 | 4,472 |
Germany | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,634 | 3,436 |
Germany | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 13,056 | 21,947 |
Germany | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 149 | 146 |
Other EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,601 | 28,187 |
Other EMEA | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,539 | 5,545 |
Other EMEA | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7,548 | 6,871 |
Other EMEA | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 12,716 | 13,968 |
Other EMEA | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,798 | 1,803 |
Total EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 48,113 | 58,188 |
Total EMEA | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9,212 | 10,017 |
Total EMEA | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 11,182 | 10,307 |
Total EMEA | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 25,772 | 35,915 |
Total EMEA | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,947 | $ 1,949 |
Operating Segment Information -
Operating Segment Information - Contract Assets By Operating Segments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Contract assets | $ 20,178 | $ 22,455 |
Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Contract assets | 0 | 0 |
Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Contract assets | 1,207 | 1,077 |
Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Contract assets | 17,456 | 19,471 |
Other | ||
Segment Reporting Information [Line Items] | ||
Contract assets | $ 1,515 | $ 1,907 |
Supplemental Financial Inform_3
Supplemental Financial Information - Restructuring and Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | ||
Restructuring Charges | $ 0 | $ 806 |
Impairment charges | 0 | 16 |
Total restructuring and impairment charges | $ 0 | $ 822 |
Supplemental Financial Inform_4
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 806 |
Lease income | 0 | (547) |
Depreciation on leased assets | $ 0 | 1,185 |
Facility Consolidation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 800 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other Operating (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | ||
Lease income | $ 0 | $ (547) |
Depreciation on leased assets | 0 | 1,185 |
Loss on sale or disposal of property, plant and equipment | 20 | 273 |
Total other operating expense, net | $ 20 | $ 911 |
Supplemental Financial Inform_6
Supplemental Financial Information - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | ||
Interest on revolving credit facility | $ 1,079 | $ 2,251 |
Interest rate swap settlements | 86 | (122) |
Line of credit fees | 166 | 126 |
Debt issuance amortization costs | 138 | 138 |
Interest on finance leases | 33 | 32 |
Interest income | (320) | (489) |
Depreciation on leased assets | 0 | 1,185 |
Total interest expense, net | 25 | 2 |
Total interest expense, net | $ 1,207 | $ 1,938 |
Uncategorized Items - rog-20200
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (20,000) |