BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

Our reporting structure is comprised of the following operating segments: High Performance Foams (HPF), Printed Circuit Materials (PCM), Power Electronics Solutions (PES) and the Other reportable segment. In the fourth quarter of 2013, we determined that a realignment of our segment structure was appropriate in order to present our financial results in a manner consistent with how management operates the business. Our previous reporting structure was comprised of the following operating segments: High Performance Foams, Printed Circuit Materials, Curamik Electronic Solutions and Power Distribution Systems and the Other reportable segment.

In the new structure, we will present three operating segments - High Performance Foams, Printed Circuit Materials, and Power Electronics Solutions and the Other reportable segment. During 2013, the management of the Curamik Electronic Solutions and Power Distribution Systems operations was combined under one segment management team and the former operating segments now meet the reporting definition of product lines, as the management team has full cross functional and regional responsibility over all aspects of these product lines. Information is reported to the Chief Operating Decision Maker (the President and Chief Executive Officer of Rogers) at the Power Electronic Solutions operating segment level. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally. All prior periods herein have been recast to support this change.


•	High Performance Foams

The High Performance Foams operating segment includes polyurethane and silicone foam products manufactured in roll stock, sheet, and molded formats. These foams have characteristics that offer functional advantages in many market applications which serve to differentiate Rogers' products from other commonly available materials.

High Performance Foams products are sold globally to converters, fabricators, distributors and original equipment manufacturers (OEMs) for use in general industrial applications, portable communications, consumer goods, transportation, printing applications and other markets. Trade names for our High Performance Foams include: PORON® urethane foams used for making high performance gaskets and seals in vehicles, portable communications devices, computers and peripherals; PORON® cushion insole materials for footwear and related products; PORON® healthcare and medical materials for body cushioning and orthotic appliances; R/bak® compressible printing plate backing and mounting products for cushioning flexographic plates for printing on packaging materials; PORON® and XRD® for high impact cushioning protection; BISCO® silicone foams, solids, sponge and extrusion products for flame retardant gaskets, seals and cushioning applications in communications infrastructure equipment, aircraft, trains, cars and trucks, and for shielding extreme temperature or flame; and eSORBA® urethane foams used in portable communications, entertainment devices and other industrial applications.

We have two 50% owned joint ventures that extend and complement our worldwide business in High Performance Foams. Rogers INOAC Corporation (RIC), a joint venture with Japan-based INOAC Corporation, manufactures high performance polyurethane foam materials in Mie and Taketoyo, Japan to predominantly serve the Japanese and Taiwanese markets. Rogers INOAC Suzhou Corporation (RIS) was established in 2004 with INOAC Corporation and provides polyurethane foam materials primarily to the Asian marketplace.


•	Printed Circuit Materials

The Printed Circuit Materials operating segment includes printed circuit board laminate products for high frequency, high performance applications. These products have characteristics that offer performance and other functional advantages in many market applications, and serve to differentiate our products from other commonly available materials. These products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits.

The polymer-based dielectric layers of our circuit board laminates are proprietary materials that provide highly specialized electrical and mechanical properties. Trade names for our printed circuit board materials include RO3000®, RO4000®, RT/duroid®, ULTRALAM®, RO2800® and TMM® laminates. All of these laminates are used for making circuitry that receive, transmit, and process high frequency communications signals, yet each laminate has varying properties that address specific needs and applications within the communications market. High frequency circuits are used in the equipment and devices that comprise wireless communications systems, including cellular communications, digital cellular communications, paging, direct broadcast television, global positioning, mobile radio communications, and radar for both aviation and automotive applications.


•	Power Electronics Solutions

The Power Electronics Solutions operating segment is comprised of direct copper bonded (DCB) ceramic substrate products and RO-LINX® power distribution products. We believe that our advanced, customized components enable the performance and reliability of today’s growing array of power electronic devices and serve to increase the efficiency of applications by managing heat and ensuring the reliability of these critical devices used in converting raw energy into controlled and regulated power that can be used and managed.

Trade names for our Power Electronics Solutions products include curamik® ceramic substrates and RO-LINX® products. Curamik® ceramic substrates are used in the design of intelligent power management devices, such as insulated gate bipolar transistor (IGBT) modules, which enable a wide range of products including highly efficient industrial motor drives, wind and solar converters and electric and hybrid electric vehicle drive systems. RO-LINX® products are used in high power electrical inverter and converter systems for use in mass transit (e.g. high speed trains); clean technology applications (e.g. wind turbines, solar farms and electric vehicles) and variable frequency drives for high to mid power applications.


•	Other

The Other reportable segment consists of elastomer components, floats and inverter distribution activities. Elastomer components are sold to OEMs for applications in ground transportation, office equipment, consumer and other markets. Trade names for our elastomer components include: NITROPHYL® floats for level sensing in fuel tanks, motors, and storage tanks and ENDUR® elastomer rollers and belts for document handling in copiers, printers, mail sorting machines and automated teller machines. Inverters are sold primarily to OEMs and fabricators that in turn sell to various other third parties primarily serving the portable communication and automotive markets.

This segment previously included the results of the Composite Materials operating segment, which qualified as a discontinued operation in the fourth quarter of 2012 when we shut down production of non-woven composite materials. This segment also included the results of the Thermal Management Solutions operating segment, which qualified as a discontinued operation in 2011. All results have been recast to exclude these segments from consolidated results or continuing operations.

The following table sets forth the information about our reportable segments for the periods indicated:



(Dollars in thousands)	High Performance Foams		Printed Circuit Materials		Power Electronics Solutions			Other		Total
2013
Net sales	$	168,082	$	184,949	$	160,730		$	23,721	$	537,482
Operating income (loss)	22,339		18,788		1,088			7,065		49,280
Total assets	221,848		177,716		382,818			24,152		806,534
Capital expenditures	3,030		7,793		5,287			749		16,859
Depreciation & amortization	6,410		7,004		12,406			531		26,351
Investment in unconsolidated joint ventures	18,463		—		—			—		18,463
Equity income (loss) in unconsolidated joint ventures	4,326		—		—			—		4,326
2012
Net sales	$	179,421	$	161,893	$	134,279		$	23,168	$	498,761
Operating income (loss)	25,730		8,170		(12,022		)	3,786		25,664
Total assets	233,401		156,103		345,013			24,761		759,278
Capital expenditures	4,947		12,849		5,746			232		23,774
Depreciation & amortization	7,947		7,172		11,083			928		27,130
Investment in unconsolidated joint ventures	21,171		—		—			—		21,171
Equity income (loss) in unconsolidated joint ventures	4,743		—		—			—		4,743
2011
Net sales	$	177,645	$	166,424	$	180,234		$	24,038	$	548,341
Operating income (loss)	28,280		11,127		11,320			2,755		53,482
Total assets	192,829		123,883		338,418			21,655		676,785
Capital expenditures	5,325		5,901		9,362			728		21,316
Depreciation & amortization	7,873		6,348		10,989			1,098		26,308
Investment in unconsolidated joint ventures	23,868		—		—			—		23,868
Equity income (loss) in unconsolidated joint ventures	5,451		—		—			—		5,451

Inter-segment sales have been eliminated from the sales data in the preceding table.

The following table sets forth the operating income (loss) reconciliation to the consolidated statements of income (loss) for the periods indicated:



	2013			2012			2011
Operating income (loss)	$	49,280		$	25,664		$	53,482

Equity income in unconsolidated joint ventures	4,326			4,743			5,451
Other income (expense), net	(1,240		)	(208		)	1,942
Net realized investment gain (loss)	—			(3,245		)	(196		)
Interest income (expense), net	(3,481		)	(4,304		)	(4,911		)
Income (loss) before income tax expense (benefit)	$	48,885		$	22,650		$	55,768

Information relating to our operations by geographic area is as follows:



	Net Sales (1)						Long-lived Assets (2)
(Dollars in thousands)	2013		2012		2011		2013		2012		2011

United States	$	118,263	$	115,035	$	109,581	$	64,545	$	64,845	$	65,432
Asia	275,969		250,682		271,132		68,613		69,830		64,181
Europe	132,126		123,040		154,423		171,615		172,671		177,196
Other	11,124		10,004		13,205		—		—		—
Total	$	537,482	$	498,761	$	548,341	$	304,773	$	307,346	$	306,809

⁽¹⁾Net sales are allocated to countries based on the location of the customer.

⁽²⁾Long-lived assets are based on the location of the asset and are comprised of goodwill and other intangibles and property, plant and equipment.