ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Massachusetts | 06-0513860 |
(State or other jurisdiction of | (I. R. S. Employer Identification No.) |
incorporation or organization) | |
2225 W. Chandler Blvd., Chandler, Arizona | 85224-6155 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o |
Smaller reporting company o | Emerging growth company o | (Do not check if a smaller reporting company) |
TABLE OF CONTENTS | |||
Part I – Financial Information | |||
Part II – Other Information | |||
Item 1. | Financial Statements |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net sales | $ | 214,611 | $ | 203,828 | |||
Cost of sales | 138,005 | 123,478 | |||||
Gross margin | 76,606 | 80,350 | |||||
Selling, general and administrative expenses | 40,597 | 34,569 | |||||
Research and development expenses | 8,134 | 6,961 | |||||
Restructuring and impairment charges | 422 | 725 | |||||
Other operating (income) expense, net | (3,591 | ) | (942 | ) | |||
Operating income | 31,044 | 39,037 | |||||
Equity income in unconsolidated joint ventures | 1,007 | 1,009 | |||||
Other income (expense), net | 66 | 1,119 | |||||
Interest expense, net | (1,210 | ) | (1,248 | ) | |||
Income before income tax expense | 30,907 | 39,917 | |||||
Income tax expense | 4,771 | 12,885 | |||||
Net income | $ | 26,136 | $ | 27,032 | |||
Basic earnings per share | $ | 1.43 | $ | 1.50 | |||
Diluted earnings per share | $ | 1.40 | $ | 1.47 | |||
Shares used in computing: | |||||||
Basic earnings per share | 18,288 | 18,056 | |||||
Diluted earnings per share | 18,610 | 18,373 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | 26,136 | $ | 27,032 | |||
Foreign currency translation adjustment | 7,000 | 4,138 | |||||
Derivative instruments designated as cash flow hedges: | |||||||
Unrealized gain (loss) on derivative instruments held at period end, net of tax (Note 6) | 778 | (114 | ) | ||||
Pension and postretirement benefit plans reclassified into earnings: | |||||||
Amortization of loss, net of tax (Note 6) | 43 | 30 | |||||
Other comprehensive income | 7,821 | 4,054 | |||||
Comprehensive income | $ | 33,957 | $ | 31,086 |
March 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 173,019 | $ | 181,159 | |||
Accounts receivable, less allowance for doubtful accounts of $1,158 and $1,525 | 150,038 | 140,562 | |||||
Contract assets | 22,040 | — | |||||
Inventories | 107,935 | 112,557 | |||||
Prepaid income taxes | 2,561 | 3,087 | |||||
Asbestos-related insurance receivables | 5,682 | 5,682 | |||||
Assets held for sale | 896 | 896 | |||||
Other current assets | 13,614 | 10,580 | |||||
Total current assets | 475,785 | 454,523 | |||||
Property, plant and equipment, net of accumulated depreciation | 181,803 | 179,611 | |||||
Investments in unconsolidated joint ventures | 18,301 | 18,324 | |||||
Deferred income taxes | 5,025 | 6,008 | |||||
Goodwill | 239,052 | 237,107 | |||||
Other intangible assets, net of amortization | 156,998 | 160,278 | |||||
Asbestos-related insurance receivables | 63,511 | 63,511 | |||||
Other long-term assets | 5,652 | 5,772 | |||||
Total assets | $ | 1,146,127 | $ | 1,125,134 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 41,346 | $ | 36,116 | |||
Accrued employee benefits and compensation | 26,178 | 39,394 | |||||
Accrued income taxes payable | 1,748 | 6,408 | |||||
Current portion of lease obligations | 604 | 579 | |||||
Current portion of asbestos-related liabilities | 5,682 | 5,682 | |||||
Other accrued liabilities | 24,336 | 25,629 | |||||
Total current liabilities | 99,894 | 113,808 | |||||
Borrowings under credit facility | 130,982 | 130,982 | |||||
Long-term lease obligations | 5,853 | 5,873 | |||||
Pension liability | 8,720 | 8,720 | |||||
Retiree health care and life insurance benefits | 1,685 | 1,685 | |||||
Asbestos-related liabilities | 70,207 | 70,500 | |||||
Non-current income tax | 12,496 | 12,823 | |||||
Deferred income taxes | 13,086 | 10,706 | |||||
Other long-term liabilities | 4,181 | 3,464 | |||||
Commitments and contingencies (Note 14) | |||||||
Shareholders’ equity | |||||||
Capital Stock - $1 par value; 50,000 authorized shares; 18,365 and 18,255 shares outstanding | 18,365 | 18,255 | |||||
Additional paid-in capital | 123,104 | 128,933 | |||||
Retained earnings | 714,888 | 684,540 | |||||
Accumulated other comprehensive loss | (57,334 | ) | (65,155 | ) | |||
Total shareholders' equity | 799,023 | 766,573 | |||||
Total liabilities and shareholders' equity | $ | 1,146,127 | $ | 1,125,134 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating Activities: | |||||||
Net income | $ | 26,136 | $ | 27,032 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 11,109 | 10,547 | |||||
Equity compensation expense | 2,673 | 1,020 | |||||
Deferred income taxes | 1,342 | 3,516 | |||||
Equity in undistributed income of unconsolidated joint ventures | (1,007 | ) | (1,009 | ) | |||
Dividends received from unconsolidated joint ventures | 1,809 | 616 | |||||
Pension and postretirement benefits | (398 | ) | (365 | ) | |||
Loss (gain) from the sale of property, plant and equipment | — | (947 | ) | ||||
Bad debt expense | (386 | ) | 384 | ||||
Proceeds from insurance related to operations | — | 480 | |||||
Changes in operating assets and liabilities, excluding effects of acquisitions: | |||||||
Accounts receivable | (7,822 | ) | (12,439 | ) | |||
Contract assets | (22,040 | ) | — | ||||
Inventories | 5,813 | (769 | ) | ||||
Pension and postretirement benefit contributions | (328 | ) | (70 | ) | |||
Other current assets | (1,438 | ) | (4,063 | ) | |||
Accounts payable and other accrued expenses | (13,050 | ) | (1,441 | ) | |||
Other, net | 6,355 | 742 | |||||
Net cash provided by operating activities | 8,768 | 23,234 | |||||
Investing Activities: | |||||||
Acquisition of business, net of cash received | — | (60,191 | ) | ||||
Capital expenditures | (9,122 | ) | (5,270 | ) | |||
Proceeds from insurance claims | — | 450 | |||||
Proceeds from the sale of property, plant and equipment, net | — | 1,603 | |||||
Net cash used in investing activities | (9,122 | ) | (63,408 | ) | |||
Financing Activities: | |||||||
Line of credit issuance costs | — | (1,029 | ) | ||||
Repayment of long-term lease obligation | (149 | ) | (87 | ) | |||
Repurchases of capital stock | (2,999 | ) | — | ||||
Proceeds from the exercise of stock options, net | 473 | 765 | |||||
Payments of taxes related to net share settlement of equity awards | (6,407 | ) | (2,572 | ) | |||
Proceeds from issuance of shares to employee stock purchase plan | 541 | 422 | |||||
Net cash used in financing activities | (8,541 | ) | (2,501 | ) | |||
Effect of exchange rate fluctuations on cash | 755 | 1,019 | |||||
Net decrease in cash and cash equivalents | (8,140 | ) | (41,656 | ) | |||
Cash and cash equivalents at beginning of period | 181,159 | 227,767 | |||||
Cash and cash equivalents at end of period | $ | 173,019 | $ | 186,111 | |||
Supplemental Disclosures: | |||||||
Cash paid during the quarter for: | |||||||
Interest, net of amounts capitalized | $ | 1,329 | $ | 1,209 | |||
Income taxes | $ | 5,645 | $ | 4,756 |
• | 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. |
Derivative Instruments at Fair Value as of March 31, 2018 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Foreign currency contracts | $ | — | $ | (329 | ) | $ | — | $ | (329 | ) | |||||
Copper derivative contracts | $ | — | $ | 1,105 | $ | — | $ | 1,105 | |||||||
Interest rate swap | $ | — | $ | 1,030 | $ | — | $ | 1,030 |
Derivative Instruments at Fair Value as of December 31, 2017 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Foreign currency contracts | $ | — | $ | (396 | ) | $ | — | $ | (396 | ) | |||||
Copper derivative contracts | $ | — | $ | 2,016 | $ | — | $ | 2,016 | |||||||
Interest rate swap | $ | — | $ | 41 | $ | — | $ | 41 |
• | 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. 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 the constant 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. Overall, fair value is a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate, and volatility. |
• | 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 counterparty for cost of funds, and the adjustment is directly related to the counterparties’ credit ratings. |
Notional Values of Foreign Currency Derivatives | ||||
KRW/USD | ₩ | 2,477,560,000 | ||
JPY/EUR | ¥ | 310,000,000 | ||
EUR/USD | € | 8,081,989 | ||
EUR/HUF | € | 608,174 | ||
USD/CNY | $ | 10,637,837 |
Volume of Copper Derivatives | |
April 2018 - June 2018 | 153 metric tons per month |
July 2018 - September 2018 | 153 metric tons per month |
October 2018 - December 2018 | 153 metric tons per month |
January 2019 - March 2019 | 162 metric tons per month |
April 2019 - June 2019 | 56 metric tons per month |
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the period ended March 31, 2018 | Fair Values of Derivative Instruments as of March 31, 2018 | ||||||||
Gain (Loss) | Other Assets (Liabilities) | |||||||||
Foreign Exchange Contracts | Location | Quarter Ended | ||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | (64 | ) | $ | (329 | ) | |||
Copper Derivatives | ||||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | (822 | ) | $ | 1,105 | ||||
Interest Rate Swap | ||||||||||
Contract designated as hedging instrument | Other comprehensive income (loss) | $ | 989 | $ | 1,030 |
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the period ended March 31, 2017 | Fair Values of Derivative Instruments as of March 31, 2017 | |||||||||
Gain (Loss) | Other Assets (Liabilities) | ||||||||||
Foreign Exchange Contracts | Location | Quarter Ended | |||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | 21 | $ | 21 | ||||||
Copper Derivatives | |||||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | 215 | $ | 1,342 | ||||||
Interest Rate Swap | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | $ | (180 | ) | $ | (180 | ) |
(Dollars in thousands) | March 31, 2018 | December 31, 2017 | |||||
Raw materials | $ | 47,344 | $ | 43,092 | |||
Work-in-process | 26,160 | 28,133 | |||||
Finished goods | 34,431 | 41,332 | |||||
Total inventories | $ | 107,935 | $ | 112,557 |
(Dollars in tables and footnotes in thousands) | Foreign currency translation adjustments | Funded status of pension plans and other postretirement benefits (1) | Unrealized gain (loss) on derivative instruments (2) | Total | |||||||||||
Beginning Balance December 31, 2017 | $ | (17,983 | ) | $ | (47,198 | ) | $ | 26 | $ | (65,155 | ) | ||||
Other comprehensive income (loss) before reclassifications | 7,000 | — | 778 | 7,778 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 43 | — | 43 | |||||||||||
Net current-period other comprehensive income (loss) | 7,000 | 43 | 778 | 7,821 | |||||||||||
Ending Balance March 31, 2018 | $ | (10,983 | ) | $ | (47,155 | ) | $ | 804 | $ | (57,334 | ) | ||||
Beginning Balance December 31, 2016 | $ | (46,446 | ) | $ | (45,816 | ) | $ | — | $ | (92,262 | ) | ||||
Other comprehensive income (loss) before reclassifications | 4,138 | — | (114 | ) | 4,024 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 30 | — | 30 | |||||||||||
Net current-period other comprehensive income (loss) | 4,138 | 30 | (114 | ) | 4,054 | ||||||||||
Ending Balance March 31, 2017 | $ | (42,308 | ) | $ | (45,786 | ) | $ | (114 | ) | $ | (88,208 | ) |
(In thousands, except per share amounts) | Three Months Ended March 31, | ||||||
2018 | 2017 | ||||||
Numerator: | |||||||
Net income | $ | 26,136 | $ | 27,032 | |||
Denominator: | |||||||
Weighted-average shares outstanding - basic | 18,288 | 18,056 | |||||
Effect of dilutive shares | 322 | 317 | |||||
Weighted-average shares outstanding - diluted | 18,610 | 18,373 | |||||
Basic earnings per share | $ | 1.43 | $ | 1.50 | |||
Diluted earnings per share | $ | 1.40 | $ | 1.47 |
March 31, 2018 | March 31, 2017 | |||
Expected volatility | 34.8% | 33.6% | ||
Expected term (in years) | 3.0 | 3.0 | ||
Risk-free interest rate | 2.28% | 1.38% |
Performance-Based Restricted Stock Awards | ||
Awards outstanding at December 31, 2017 | 169,202 | |
Awards granted | 72,160 | |
Stock issued | (81,230 | ) |
Awards forfeited | (1,735 | ) |
Awards outstanding at March 31, 2018 | 158,397 |
Time-Based Restricted Stock Awards | ||
Awards outstanding at December 31, 2017 | 173,331 | |
Awards granted | 41,100 | |
Stock issued | (76,996 | ) |
Awards forfeited | (1,990 | ) |
Awards outstanding at March 31, 2018 | 135,445 |
Deferred Stock Units | ||
Awards outstanding at December 31, 2017 | 9,250 | |
Awards granted | — | |
Stock issued | — | |
Awards outstanding at March 31, 2018 | 9,250 |
Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted-Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | |||||||||
Options outstanding at December 31, 2017 | 33,283 | $ | 36.40 | 2.2 | $ | 4,177,655 | ||||||
Options exercised | (11,383 | ) | $ | 41.56 | ||||||||
Options forfeited | — | $ | — | |||||||||
Options outstanding at March 31, 2018 | 21,900 | $ | 33.72 | 2.1 | $ | 1,879,485 | ||||||
Options exercisable at March 31, 2018 | 21,900 | $ | 33.72 | 2.1 | $ | 1,879,485 | ||||||
Options vested at March 31, 2018 | 21,900 | $ | 33.72 | 2.1 | $ | 1,879,485 |
(Dollars in thousands) | Pension Benefits | Retirement Health and Life Insurance Benefits | |||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||
Change in benefit obligation: | 2018 | 2017 | 2018 | 2017 | |||||||||||
Service cost | $ | — | $ | — | $ | 20 | $ | 39 | |||||||
Interest cost | 1,680 | 1,841 | 15 | 18 | |||||||||||
Expected return on plan assets | (2,169 | ) | (2,309 | ) | — | — | |||||||||
Amortization of prior service cost (credit) | — | — | (400 | ) | (373 | ) | |||||||||
Amortization of net loss (gain) | 456 | 433 | — | (14 | ) | ||||||||||
Net periodic (benefit) cost | $ | (33 | ) | $ | (35 | ) | $ | (365 | ) | $ | (330 | ) |
(Dollars in thousands) | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | ||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||
Net sales - recognized over time | $ | — | $ | 1,039 | $ | 57,400 | $ | 4,648 | $ | 63,087 | |||||||||
Net sales - recognized at a point in time | 73,455 | 77,044 | 314 | 711 | 151,524 | ||||||||||||||
Total net sales | $ | 73,455 | $ | 78,083 | $ | 57,714 | $ | 5,359 | $ | 214,611 | |||||||||
Operating income | $ | 7,903 | $ | 14,159 | $ | 7,021 | $ | 1,961 | $ | 31,044 | |||||||||
Three Months Ended March 31, 2017 (1) | |||||||||||||||||||
Net sales - recognized over time | $ | — | $ | 667 | $ | 42,273 | $ | 5,096 | $ | 48,036 | |||||||||
Net sales - recognized at a point in time | 78,528 | 76,197 | 379 | 688 | 155,792 | ||||||||||||||
Total net sales | $ | 78,528 | $ | 76,864 | $ | 42,652 | $ | 5,784 | $ | 203,828 | |||||||||
Operating income | $ | 19,498 | $ | 12,790 | $ | 4,844 | $ | 1,905 | $ | 39,037 |
Three Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Operating income | $ | 31,044 | $ | 39,037 | |||
Equity income in unconsolidated joint ventures | 1,007 | 1,009 | |||||
Other income (expense), net | 66 | 1,119 | |||||
Interest expense, net | (1,210 | ) | (1,248 | ) | |||
Income before income tax expense | $ | 30,907 | $ | 39,917 |
(Dollars in thousands) | Net Sales (1) | ||||||||||||||
Region/Country | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | ||||||||||
March 31, 2018 | |||||||||||||||
United States | 12,278 | 37,692 | 8,578 | 1,257 | 59,805 | ||||||||||
Other Americas | 826 | 1,801 | 358 | (170 | ) | 2,815 | |||||||||
Total Americas | 13,104 | 39,493 | 8,936 | 1,087 | 62,620 | ||||||||||
China | 33,507 | 20,794 | 9,422 | 1,317 | 65,040 | ||||||||||
Other APAC | 15,338 | 9,160 | 6,451 | 793 | 31,742 | ||||||||||
Total APAC | 48,845 | 29,954 | 15,873 | 2,110 | 96,782 | ||||||||||
Germany | 6,250 | 2,742 | 14,710 | 169 | 23,871 | ||||||||||
Other EMEA | 5,256 | 5,894 | 18,195 | 1,993 | 31,338 | ||||||||||
Total EMEA | 11,506 | 8,636 | 32,905 | 2,162 | 55,209 | ||||||||||
Total Net sales | 73,455 | 78,083 | 57,714 | 5,359 | 214,611 | ||||||||||
March 31, 2017 | |||||||||||||||
United States | 13,220 | 38,104 | 8,590 | 1,215 | 61,129 | ||||||||||
Other Americas | 567 | 2,472 | 303 | 184 | 3,526 | ||||||||||
Total Americas | 13,787 | 40,576 | 8,893 | 1,399 | 64,655 | ||||||||||
China | 37,423 | 16,915 | 6,367 | 1,342 | 62,047 | ||||||||||
Other APAC | 15,924 | 9,944 | 5,119 | 915 | 31,902 | ||||||||||
Total APAC | 53,347 | 26,859 | 11,486 | 2,257 | 93,949 | ||||||||||
Germany | 6,075 | 2,293 | 11,935 | 183 | 20,486 | ||||||||||
Other EMEA | 5,319 | 7,136 | 10,338 | 1,945 | 24,738 | ||||||||||
Total EMEA | 11,394 | 9,429 | 22,273 | 2,128 | 45,224 | ||||||||||
Total Net sales | 78,528 | 76,864 | 42,652 | 5,784 | 203,828 |
(1) | Net sales are allocated to countries based on the location of the customer. The table above includes countries with 10% or more of net sales for the periods indicated. |
Joint Venture | Location | Operating Segment | Fiscal Year-End |
Rogers INOAC Corporation (RIC) | Japan | Elastomeric Material Solutions | October 31 |
Rogers INOAC Suzhou Corporation (RIS) | China | Elastomeric Material Solutions | December 31 |
Three Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Net sales | $ | 13,367 | $ | 11,185 | |||
Gross profit | $ | 5,230 | $ | 4,311 | |||
Net income | $ | 2,014 | $ | 2,018 |
(Dollars in thousands) | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | ||||||||||||||
December 31, 2017 | $ | 51,693 | $ | 111,575 | $ | 71,615 | $ | 2,224 | $ | 237,107 | |||||||||
Foreign currency translation adjustment | — | 23 | 1,922 | — | 1,945 | ||||||||||||||
March 31, 2018 | $ | 51,693 | $ | 111,598 | $ | 73,537 | $ | 2,224 | $ | 239,052 |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
(Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Customer relationships | $ | 129,330 | $ | 24,675 | $ | 104,655 | $ | 128,907 | $ | 22,514 | $ | 106,393 | |||||||||||
Technology | 74,671 | 35,645 | 39,026 | 73,891 | 33,491 | 40,400 | |||||||||||||||||
Trademarks and patents | 10,214 | 2,413 | 7,801 | 10,213 | 2,157 | 8,056 | |||||||||||||||||
Covenants not to compete | 1,800 | 1,150 | 650 | 1,799 | 1,108 | 691 | |||||||||||||||||
Total definite-lived other intangible assets | 216,015 | 63,883 | 152,132 | 214,810 | 59,270 | 155,540 | |||||||||||||||||
Indefinite-lived other intangible asset | 4,866 | — | 4,866 | 4,738 | — | 4,738 | |||||||||||||||||
Total other intangible assets | $ | 220,881 | $ | 63,883 | $ | 156,998 | $ | 219,548 | $ | 59,270 | $ | 160,278 |
Definite-Lived Other Intangible Asset Class | Weighted Average Remaining Amortization Period | |
Customer relationships | 9.0 | |
Technology | 4.8 | |
Trademarks and patents | 6.0 | |
Covenants not to compete | 1.9 | |
Total definite-lived other intangible assets | 7.7 |
Three Months Ended March 31, 2018 | ||
Claims outstanding at December 31, 2017 | 687 | |
New claims filed | 65 | |
Pending claims concluded | (78 | ) |
Claims outstanding at March 31, 2018 | 674 |
(Dollars in thousands) | Three Months Ended March 31, 2018 | ||
Shares of capital stock repurchased | 23,138 | ||
Value of capital stock repurchased | $ | 2,999 |
(Dollars in thousands) | Severance Related to Headquarters Relocation | ||
Balance at December 31, 2017 | $ | 183 | |
Provisions | 53 | ||
Payments | (157 | ) | |
Balance at March 31, 2018 | $ | 79 |
March 31, 2018 | ||||||||||||||
(Dollars in thousands) | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | |||||||||
Contract Assets | — | 308 | 17,753 | 3,979 | 22,040 |
As of | |||||||||||
Condensed Consolidated Statements of Financial Position: | December 31, 2017 | January 1, 2018 | |||||||||
(Dollars in thousands) | Under ASC 605 | Impact of Adoption | Under ASC 606 | ||||||||
Contract assets | $ | — | $ | 18,099 | $ | 18,099 | |||||
Inventories | 112,557 | (12,307 | ) | 100,250 | |||||||
Deferred income taxes | 10,706 | 1,580 | 12,286 | ||||||||
Retained earnings | 684,540 | 4,212 | 688,752 |
Condensed Consolidated Statements of Operations: | Three Months Ended | ||||||||||
March 31, 2018 | March 31, 2018 | ||||||||||
(In thousands, except per share amounts) | Under ASC 605 | Impact of Adoption | Under ASC 606 | ||||||||
Net sales | $ | 210,670 | $ | 3,941 | $ | 214,611 | |||||
Cost of sales | 135,325 | 2,680 | 138,005 | ||||||||
Income tax expense | 4,438 | 333 | 4,771 | ||||||||
Net income | 25,208 | 928 | 26,136 | ||||||||
Basic earnings per share | $ | 1.38 | $ | 0.05 | $ | 1.43 | |||||
Diluted earnings per share | $ | 1.35 | $ | 0.05 | $ | 1.40 | |||||
As of | |||||||||||
Condensed Consolidated Statements of Financial Position: | March 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands) | Under ASC 605 | Impact of Adoption | Under ASC 606 | ||||||||
Contract assets | $ | — | $ | 22,040 | $ | 22,040 | |||||
Inventories | 122,922 | (14,987 | ) | 107,935 | |||||||
Deferred income taxes | 11,173 | 1,913 | 13,086 | ||||||||
Retained earnings | 709,748 | 5,140 | 714,888 | ||||||||
Condensed Consolidated Statements of Cash Flows: | Three Months Ended | ||||||||||
March 31, 2018 | March 31, 2018 | ||||||||||
(Dollars in thousands) | Under ASC 605 | Impact of Adoption | Under ASC 606 | ||||||||
Cash provided by operating activities: | |||||||||||
Net income | $ | 25,208 | $ | 928 | $ | 26,136 | |||||
Deferred income taxes | (571 | ) | 1,913 | 1,342 | |||||||
Contract assets | — | (22,040 | ) | (22,040 | ) | ||||||
Inventories | (9,174 | ) | 14,987 | 5,813 | |||||||
Other, net | 2,143 | 4,212 | 6,355 | ||||||||
Net cash provided by operating activities | 8,768 | — | 8,768 |
Three Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Gain from antitrust litigation settlement | $ | (3,591 | ) | $ | — | ||
Gain on sale of long-lived assets | $ | — | $ | (942 | ) |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | failure to capitalize on, or volatility within, the Company’s growth drivers, including advanced mobility and advanced connectivity; |
• | uncertain business, economic and political conditions in the United States and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations; |
• | fluctuations in foreign currency exchange rates; |
• | our ability to develop innovative products and have them incorporated into end-user products and systems; |
• | the extent to which end-user products and systems incorporating our products achieve commercial success; |
• | the ability of our sole or limited source suppliers to deliver certain key raw materials, including commodities, to us in a timely or cost-effective manner; |
• | intense global competition affecting both our existing products and products currently under development; |
• | failure to realize, or delays in the realization of, anticipated benefits of acquisitions and divestitures due to, among other things, the existence of unknown liabilities or difficulty integrating acquired businesses; |
• | our ability to attract and retain management and skilled technical personnel; |
• | our ability to protect our proprietary technology from infringement by third parties and/or allegations that our technology infringes third party rights; |
• | changes in effective tax rates or tax laws and regulations in the jurisdictions in which we operate; |
• | failure to comply with financial and restrictive covenants in our credit agreement or restrictions on our operational and financial flexibility due to such covenants; |
• | the outcome of ongoing and future litigation, including our asbestos-related product liability litigation; |
• | changes in environmental laws and regulations applicable to our business; and |
• | disruptions in, or breaches of, our information technology systems. |
• | Our net sales increase in the first quarter of 2018 reflected currency fluctuations and growth attributable to our EMS and PES operating segments. Net sales were favorably impacted by $9.4 million due to currency fluctuations in the Euro, Renminbi and Korean Won relative to the U.S. dollar. Our EMS operating segment had higher demand in electric and hybrid electric vehicles, portable electronics, general industrial, and automotive and our PES operating segment had higher demand in renewable energy, variable frequency drives and laser diode coolers. These improvements were partially offset by a decline in net sales in our ACS operating segment due to lower demand for wireless 4G LTE applications, portable electronics, satellite TV and aerospace and defense. Net sales were favorably impacted by $3.9 million as a result of the adoption of new accounting guidance for revenue recognition. See Note 19, “Revenue from Contracts with Customers,” as well as “Segment Sales and Operations” for further discussion. |
• | Our gross margin decreased 373 basis points and our operating margin decreased 469 basis points in the first quarter of 2018. Our gross margin deteriorated to 35.7% in the first quarter of 2018 as a result of increased costs for commodities and product launch, as well as lower capacity utilization including performance challenges with process issues, machine downtime and unfavorable absorption of fixed costs. |
• | Our operating income decreased to $31.0 million in the first quarter of 2018, as compared to $39.0 million in the first quarter of 2017, reflecting an increase in selling, general & administrative (SG&A) expenses due to a $0.6 million increase in intangible assets amortization, a $1.0 million increase in severance, a $0.9 million increase in incentive compensation and a $2.1 million increase in sales and marketing costs associated with strategic growth initiatives. As a result, SG&A expense increased as a percentage of net sales from 17.0% in the first quarter of 2017 to 18.9% in the first quarter of 2018. |
• | We are an innovation company, and in the first quarter of 2018 we continued our investment in research and development (R&D), with R&D expenses comprising 3.8% of our quarterly net sales. R&D expenses were $8.1 million in the first quarter of 2018, which was an increase of $1.2 million and 0.4% as a percentage of net sales from the first quarter of 2017. We have made concerted efforts to realign our R&D organization to better fit the future direction of our Company, including dedicating resources to focus on current product extensions and enhancements to meet our short-term and long-term technology needs. |
Quarter Ended | |||||
March 31, | |||||
2018 | 2017 | ||||
Net sales | 100.0 | % | 100.0 | % | |
Gross margin | 35.7 | % | 39.4 | % | |
Selling, general and administrative expenses | 18.9 | % | 17.0 | % | |
Research and development expenses | 3.8 | % | 3.4 | % | |
Restructuring and impairment charges | 0.2 | % | 0.4 | % | |
Other operating (income) expense, net | (1.7 | )% | (0.5 | )% | |
Operating income | 14.5 | % | 19.2 | % | |
Equity income in unconsolidated joint ventures | 0.5 | % | 0.5 | % | |
Other income (expense), net | — | % | 0.5 | % | |
Interest expense, net | (0.6 | )% | (0.6 | )% | |
Income before income tax expense | 14.4 | % | 19.6 | % | |
Income tax expense | 2.2 | % | 6.3 | % | |
Net income | 12.2 | % | 13.3 | % |
Net Sales and Gross Margin | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Net sales | $ | 214,611 | $ | 203,828 | 5.3% | |||||
Gross margin | 35.7 | % | 39.4 | % |
Selling, General and Administrative Expenses | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Selling, general and administrative expenses | $ | 40,597 | $ | 34,569 | 17.4% | |||||
Percentage of net sales | 18.9 | % | 17.0 | % |
Research and Development Expenses | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Research and development expenses | $ | 8,134 | $ | 6,961 | 16.9% | |||||
Percentage of net sales | 3.8 | % | 3.4 | % |
Restructuring and Impairment Charges and Other Operating Expenses (Income), Net | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Restructuring and impairment charges | $ | 422 | $ | 725 | (41.8)% | |||||
Other operating (income) expense, net | $ | (3,591 | ) | (942 | ) | 281.2% |
Equity Income in Unconsolidated Joint Ventures | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Equity income in unconsolidated joint ventures | $ | 1,007 | $ | 1,009 | (0.2)% |
Other Income (Expense), Net | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Other income (expense), net | $ | 66 | $ | 1,119 | (94.1)% |
Interest Expense, Net | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Interest expense, net | $ | (1,210 | ) | $ | (1,248 | ) | (3.0)% |
Income Taxes | Quarter Ended | |||||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | Percent Change | |||||||
Income tax expense | $ | 4,771 | $ | 12,885 | (63.0)% | |||||
Effective tax rate | 15.4 | % | 32.3 | % |
Quarter Ended | |||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | |||||
Net sales | $ | 73,455 | $ | 78,528 | |||
Operating income | $ | 7,903 | $ | 19,498 |
Quarter Ended | |||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | |||||
Net sales | $ | 78,083 | $ | 76,864 | |||
Operating income | $ | 14,159 | $ | 12,790 |
Quarter Ended | |||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | |||||
Net sales | $ | 57,714 | $ | 42,652 | |||
Operating income | $ | 7,021 | $ | 4,844 |
Quarter Ended | |||||||
(Dollars in thousands) | March 31, 2018 | March 31, 2017 | |||||
Net sales | $ | 5,359 | $ | 5,784 | |||
Operating income | $ | 1,961 | $ | 1,905 |
(Dollars in thousands) | March 31, 2018 | December 31, 2017 | |||||
Key Balance Sheet Accounts: | |||||||
Cash and cash equivalents | $ | 173,019 | $ | 181,159 | |||
Accounts receivable, net | $ | 150,038 | $ | 140,562 | |||
Contract assets | $ | 22,040 | $ | — | |||
Inventories | $ | 107,935 | $ | 112,557 | |||
Outstanding borrowing on credit facilities | $ | 130,982 | $ | 130,982 |
(Dollars in thousands) | March 31, 2018 | December 31, 2017 | |||||
United States | $ | 35,628 | $ | 35,653 | |||
Europe | 43,147 | 41,307 | |||||
Asia | 94,244 | 104,199 | |||||
Total cash and cash equivalents | $ | 173,019 | $ | 181,159 |
• | Accounts receivable increased 6.7% to $150.0 million as of March 31, 2018, from $140.6 million at December 31, 2017. The increase from year-end was primarily due to higher net sales in the first quarter of 2018 compared to the fourth quarter of 2017 as well as an increase due to a receivable in the amount of $3.6 million for settlement of an antitrust litigation claim. |
• | We recorded contract assets of $22.0 million as of March 31, 2018 in conjunction with the adoption of ASU 2014-09. See further discussion in Note 19, “Revenue from Contracts with Customers” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q. |
• | Inventory decreased 4.1% to $107.9 million as of March 31, 2018, from $112.6 million at December 31, 2017 as a result of the adoption of new accounting guidance for revenue recognition. See discussion in Note 19, “Revenue from Contracts with Customers.” |
• | Accrued employee benefits and compensation decreased to $26.2 million of March 31, 2018, from $39.4 million at December 31, 2017. This decrease is primarily due to incentive compensation payouts of $17 million that occurred in the first quarter of 2018, partially offset by $2.7 million of accruals for projected incentive compensation payouts for the current performance year. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(Dollars in thousands, except per share amounts) | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased under the Plans or Programs | ||||||||||
March 1, 2018 to March 31, 2018 | 23,138 | $ | 129.62 | 23,138 | $ | 49,013 |
List of Exhibits: | |
3.1 | |
3.2 | |
10.1 | |
31.1 | |
31.2 | |
32 | |
101 | The following materials from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018 formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the three months ended March 31, 2018 and March 31, 2017, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2018 and March 31, 2017, (iii) Condensed Consolidated Statements of Financial Position at March 31, 2018 and December 31, 2017, (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and March 31, 2017 and (v) Notes to Condensed Consolidated Financial Statements. |
ROGERS CORPORATION (Registrant) |
/s/ Janice E. Stipp | /s/ Mark Weaver | |
Janice E. Stipp Senior Vice President, Finance and Chief Financial Officer, Principal Financial Officer | Mark Weaver Corporate Controller and Chief Accounting Officer | |
Dated: April 26, 2018 | Dated: April 26, 2018 |
1. | During the Transition Period, Executive shall, under the supervision and direction of the Chief Executive Officer, or his designee, limit her support to the following activities: |
2. | Undertake such matters reasonably necessary to continue to fulfill her duties as Chief Financial Officer with respect to the Company’s internal controls, disclosure controls and financial reporting; and |
3. | Undertake such matters as shall be reasonably required for and related to the transition of her responsibilities to her successor. |
1. | I have reviewed this quarterly report on Form 10-Q of Rogers Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: April 26, 2018 |
/s/ Bruce D. Hoechner |
Bruce D. Hoechner |
President and Chief Executive Officer, |
Principal Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Rogers Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: April 26, 2018 |
/s/ Janice E. Stipp |
Janice E. Stipp |
Senior Vice President, Finance and Chief Financial Officer, |
Principal Financial Officer |
/s/ Bruce D. Hoechner |
Bruce D. Hoechner |
President and Chief Executive Officer, |
Principal Executive Officer |
April 26, 2018 |
/s/ Janice E. Stipp |
Janice E. Stipp |
Senior Vice President, Finance and Chief Financial Officer, |
Principal Financial Officer |
April 26, 2018 |
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Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2018 |
Apr. 20, 2018 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | ROGERS CORP | |
Trading Symbol | ROG | |
Entity Central Index Key | 0000084748 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 18,366,179 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Income Statement [Abstract] | ||
Net sales | $ 214,611 | $ 203,828 |
Cost of sales | 138,005 | 123,478 |
Gross margin | 76,606 | 80,350 |
Selling, general and administrative expenses | 40,597 | 34,569 |
Research and development expenses | 8,134 | 6,961 |
Restructuring and impairment charges | 422 | 725 |
Other operating (income) expense, net | (3,591) | (942) |
Operating income | 31,044 | 39,037 |
Equity income in unconsolidated joint ventures | 1,007 | 1,009 |
Other income (expense), net | 66 | 1,119 |
Interest expense, net | (1,210) | (1,248) |
Income before income tax expense | 30,907 | 39,917 |
Income tax expense | 4,771 | 12,885 |
Net income | $ 26,136 | $ 27,032 |
Basic earnings per share (in dollars per share) | $ 1.43 | $ 1.50 |
Diluted earnings per share (in dollars per share) | $ 1.40 | $ 1.47 |
Shares used in computing: | ||
Basic earnings per share (shares) | 18,288 | 18,056 |
Diluted earnings per share (shares) | 18,610 | 18,373 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 26,136 | $ 27,032 |
Foreign currency translation adjustment | 7,000 | 4,138 |
Net unrealized gains (losses) on securities: | ||
Net unrealized gain (loss) on marketable securities reclassified into earnings, net of tax (Note 6) | 0 | 0 |
Derivative instruments designated as cash flow hedges: | ||
Unrealized gain (loss) on derivative instruments held at period end, net of tax (Note 6) | 778 | (114) |
Pension and postretirement benefit plans reclassified into earnings: | ||
Amortization of loss, net of tax (Note 6) | 43 | 30 |
Other comprehensive income | 7,821 | 4,054 |
Comprehensive income | $ 33,957 | $ 31,086 |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,158 | $ 1,525 |
Capital Stock, par value (in dollars per share) | $ 1 | $ 1 |
Capital Stock, authorized shares (shares) | 50,000,000 | 50,000,000 |
Capital Stock, shares outstanding (shares) | 18,365,000 | 18,255,000 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2018 | |
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 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 of America (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 transactions have been eliminated. Certain reclassifications have been made to prior period balances in the statements of financial position in order to conform to the current period presentation. In addition, the Company reclassified $0.9 million of Gain on sale of long-lived asset to Other operating income (expense), net on the condensed consolidated statements of operations for the three months ended March 31, 2017. On January 1, 2018, the Company adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost. Upon adoption, the Company reclassified $0.4 million in net periodic pension benefits from Selling, general and administrative expenses to Other income (expense), net for the three months ended March 31, 2017. See Note 21, “Recent Accounting Standards” for further information. 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 fiscal year ended December 31, 2017. |
Fair Value Measurements |
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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:
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, include:
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Hedging Transactions and Derivative Financial Instruments |
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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 and commodity pricing risk (primarily related to copper). During the first quarter of 2017, we entered into an interest rate swap to hedge interest rate risk. We do not use derivative financial instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of these risks is described below:
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 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). 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, 2018, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge. For the three months ended March 31, 2018 and 2017, the hedge was highly effective. Foreign Currency During the quarter ended March 31, 2018, we entered into Korean Won, Japanese Yen, Euro, Hungarian Forint and Chinese Renminbi 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 income (expense), net” in our condensed consolidated statements of operations. As of March 31, 2018 the notional values of these foreign currency forward contracts were:
Commodity We currently have twenty-four outstanding contracts to hedge exposure related to the purchase of copper in our Power Electronics Solutions (PES) and Advanced Connectivity Solutions (ACS) operations. These contracts are held with financial institutions and minimize the risk associated with a potential rise in copper prices. These contracts provide some coverage over the forecasted 2018 and 2019 monthly copper exposure and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other income (expense), net” in our condensed consolidated statements of operations in the period in which the adjustment occurs. The notional values of our copper contracts outstanding as of March 31, 2018 were:
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. See Note 12, “Debt” for further discussion regarding the credit facility. Effects on Statements of Operations and of Comprehensive Income (Loss):
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Inventories |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are valued at the lower of cost or market. Inventories were as follows at the end of the periods noted below:
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Acquisitions |
3 Months Ended |
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Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Diversified Silicone Products On January 6, 2017, we acquired the principal operating assets of Diversified Silicone Products, Inc. (DSP), pursuant to the terms of the Asset Purchase Agreement by and among the Company, DSP and the principal shareholders of DSP (the Purchase Agreement). Pursuant to the terms of the Purchase Agreement, we acquired certain assets and assumed certain liabilities of DSP for a total purchase price of approximately $60.2 million. We used borrowings of $30.0 million under our credit facility in addition to cash on hand to fund the acquisition. DSP is a custom silicone product development and manufacturing business and expands the portfolio of our Elastomeric Material Solutions (EMS) operating segment in cellular sponge and specialty extruded silicone profile technologies, while strengthening existing expertise in precision-calendered silicone and silicone formulating and compounding. The results of DSP have been included in our condensed consolidated financial statements only for the periods subsequent to the completion of our acquisition on January 6, 2017. |
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component for the three months ended March 31, 2018 and 2017 were as follows:
(1) Net of taxes of $9,549 and $9,563 as of March 31, 2018 and December 31, 2017, respectively. Net of taxes of $9,144 and $9,160 as of March 31, 2017 and December 31, 2016, respectively. (2) Net of taxes of $225 and $15 as of March 31, 2018 and December 31, 2017, respectively. Net of taxes of $65 and $0 as of March 31, 2017 and December 31, 2016, respectively. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the periods indicated:
Certain potential options to purchase shares may be excluded from the calculation of diluted weighted-average shares outstanding where their exercise price is greater than the average market price of our capital stock during the relevant reporting period. For the quarters ended March 31, 2018 and March 31, 2017, no shares were excluded. |
Stock-Based Compensation |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Equity Compensation Awards Performance-Based Restricted Stock Units As of March 31, 2018, we had performance-based restricted stock awards from 2016, 2017 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. Compensation expense is recognized using the straight-line method over the measurement period, unless the employee has an accelerated vesting schedule. The 2016, 2017 and 2018 awards have one measurement criteria: the three year total shareholder return (TSR) on the performance of our capital stock as compared to that of a specified group of peer companies. The TSR measurement criteria of the awards is considered a market condition. As such, the fair value of this measurement criteria was determined on the date of grant using a Monte Carlo simulation valuation model, with related compensation expense fixed on the grant date and expensed on a straight-line basis over the life of the awards that ultimately vest and with no changes for the final projected payout of the awards. Below were the assumptions used in the Monte Carlo calculation:
Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility. Expected term – We use the measurement 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. Forfeiture Rate – We account for forfeitures as they occur. The following table summarizes the change in number of performance-based restricted stock awards outstanding for the three months ended March 31, 2018:
During the three months ended March 31, 2018, we recognized compensation expense for performance-based restricted stock awards of approximately $1.0 million. During the three months ended March 31, 2017, we recognized compensation income for performance-based restricted stock awards of approximately $0.1 million. Time-Based Restricted Stock Units As of March 31, 2018, we had time-based restricted stock grants from 2014, 2015, 2016, 2017 and 2018 outstanding. The 2015, 2016, 2017 and 2018 grants all ratably vest on the first, second and third anniversaries of the original grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. The Company issued 2,200 time-based restricted stock units to key employees in 2014 that cliff vest on December 17, 2018. Each restricted stock unit represents a right to receive one share of the Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined based on the market value of the underlying stock price at the grant date. We account for forfeitures as they occur. The following table summarizes the change in number of time-based restricted stock awards outstanding for the three months ended March 31, 2018:
During the three months ended March 31, 2018 we recognized compensation expense for time-based restricted stock awards of approximately $1.5 million. During the three months ended March 31, 2017 we recognized compensation expense for time-based restricted stock awards of approximately $1.0 million. 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 based on the market value of the underlying stock price at the grant date. The following table summarizes the change in number of deferred stock units outstanding during the three months ended March 31, 2018:
During the each of the three-month periods ended March 31, 2018 and 2017, we recognized no compensation expense associated with the deferred stock units. Stock Options Stock options have been granted under various equity compensation plans, and they generally became exercisable in one-third increments on the second, third and fourth anniversaries of the grant dates. The maximum contractual term for all options was normally ten years. We used the Black-Scholes option-pricing model to calculate the grant-date fair value of an option. We have not granted any stock options since the first quarter of 2012. A summary of the activity under our stock option plans during the three months ended March 31, 2018 and changes during the three months then ended, is presented below:
During the three months ended March 31, 2018, the total intrinsic value of options exercised (i.e., the difference between the market price at time of exercise and the price paid by the individual to exercise the options) was $1.5 million, and the total amount of cash received from the exercise of these options was $0.5 million. Employee Stock Purchase Plan We have an employee stock purchase plan (ESPP) that allows eligible employees to purchase, through payroll deductions, shares of our capital stock at a discount to fair market value. The ESPP has two six month offering periods each year, the first beginning in January and ending in June and the second beginning in July and ending in December. The ESPP contains a look-back feature that allows the employee to acquire shares of our capital stock at a 15% discount from the underlying market price at the beginning or end of the applicable period, whichever is lower. We recognize compensation expense on this plan ratably over the offering period based on the fair value of the anticipated number of shares that will be issued at the end of each offering period. Compensation expense is adjusted at the end of each offering period for the actual number of shares issued. Fair value is determined based on two factors: (i) the 15% discount on the underlying stock’s market value on the first day of the applicable offering period and (ii) the fair value of the look-back feature determined by using the Black-Scholes model. We recognized approximately $0.1 million of compensation expense associated with the plan in each of the three month periods ended March 31, 2018 and 2017. |
Pension Benefits and Other Postretirement Benefit Plans |
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Pension Benefit and Other Postretirement Benefit Plans | Pension Benefits and Other Postretirement Benefit Plans We have two qualified noncontributory defined benefit pension plans: 1) the Rogers Corporation Employee’s Pension Plan for unionized hourly employees (the Union Plan); and 2) the Rogers Corporation Defined Benefit Pension Plan for (i) all other U.S. employees hired before December 31, 2007 who are salaried employees or non-union hourly employees and (ii) employees of the acquired Arlon business (the Rogers Plan). The Company also maintains the Rogers Corporation Amended and Restated Pension Restoration Plan effective as of January 1, 2004 and the Rogers Corporation Amended and Restated Pension Restoration Plan effective as of January 1, 2005 (collectively, the Nonqualified Plans). The Nonqualified Plans serve to restore certain retirement benefits that might otherwise be lost due to limitations imposed by federal law on qualified pension plans, as well as to provide supplemental retirement benefits, for certain senior executives of the Company. In addition, we sponsor multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31 for each respective plan year. Components of Net Periodic (Benefit) Cost The components of net periodic (benefit) cost for the periods indicated were:
Employer Contributions There were no required contributions to our qualified defined benefit pension plans in the first quarter of 2018 and we are not required to make additional contributions to these plans in 2018. We paid $0.1 million of required contributions in the first quarter of 2017. In the first quarter of 2018 and 2017, we did not make any voluntary contributions to our defined benefit pension plans. As there is no funding requirement for the non-qualified unfunded noncontributory defined benefit pension plan or the retiree health and life insurance benefit plans, benefit payments made during the year are funded directly by the Company. Pension Plan Proposed Termination The Company currently intends to terminate the Rogers Plan and has requested a determination letter from the Internal Revenue Service (IRS). The termination of the Rogers Plan remains subject to final approval by both management and the IRS. The Company plans to provide for lump sum distributions or annuity payments in connection with the termination of the Rogers Plan and we expect the settlement process to be completed in late 2018 or early 2019. The Company lacks sufficient information as of March 31, 2018 to determine the financial impact of the proposed plan termination. At this time, there are no plans to terminate the Union Plan. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our reporting structure is comprised of the following operating segments: ACS, EMS and PES. 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. In January 2017, we acquired the principal operating assets of DSP, a custom manufacturer of silicone sheet, extrusions, stripping and compounds. We have integrated DSP into our EMS operating segment. On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers. See Note 19, “Revenue from Contracts with Customers” for further information about this adoption. The Company sells products to fabricators and distributors who then sell directly into various end markets. Specifically, end markets within the ACS operating segment include wireless infrastructure, aerospace and defense, auto safety and connectivity, and consumer electronics. End markets within the EMS operating segment include general industrial, portable electronics, mass transit, and automotive. End markets within the PES operating segment include industrial, e-mobility, renewable energy, mass transit, and micro channel coolers. End markets in the Other operating segment include automotive and industrial. The following table presents a disaggregation of revenue from contracts with customers for the periods indicated; inter-segment sales have been eliminated from the net sales data:
(1) For comparison purposes, this table reflects the disaggregation of 2017 revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). The following table sets forth the operating income reconciliation to the condensed consolidated statements of operations for the periods indicated:
Information relating to our segment operations by geographic area was as follows:
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Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Joint Ventures | Joint Ventures As of March 31, 2018, we had two joint ventures, each 50% owned, which were accounted for under the equity method of accounting.
We recognized equity income related to the joint ventures of $1.0 million for the three months ended March 31, 2018 and 2017. These amounts are included in the condensed consolidated statements of operations. The summarized financial information for the joint ventures for the periods indicated was as follows:
Receivables from and payables to joint ventures arise during the normal course of business from transactions between us and the joint ventures. We had receivables of $4.6 million and $3.7 million due from RIC and RIS as of March 31, 2018 and December 31, 2017, respectively. We owed payables of $2.0 million and $2.1 million to RIC and RIS as of March 31, 2018 and December 31, 2017, respectively. |
Debt |
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Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 17, 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). 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 that includes 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 greater of the prime rate; federal funds effective rate (or the overnight bank funding rate, if greater) plus 50 basis points; or adjusted 1-month LIBOR plus 100 basis points. 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. 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 one fiscal year in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00. 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. We are not required to make any quarterly principal payments under the Third Amended Credit Agreement, and as of March 31, 2018 we have $131.0 million in outstanding borrowings under our credit facility. At March 31, 2018, we have $2.1 million of outstanding line of credit issuance costs that will be amortized over the life of the Third Amended Credit Agreement, which will terminate in February 2022. We recorded amortization expense of $0.1 million for the three months ended March 31, 2018 and 2017 related to these deferred costs. 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. See further discussion in Note 3, “Hedging Transactions and Derivative Financial Instruments.” Restriction on Payment of Dividends Our 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, 2018. Capital Leases We have a capital lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the leasing 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. The total obligation recorded for the lease as of March 31, 2018 is $5.7 million. Depreciation expense related to the capital lease was $0.1 million for each of the three-month periods ended March 31, 2018 and 2017 and these expenses are included as depreciation expense in cost of sales on our condensed consolidated statements of operations. Accumulated depreciation at March 31, 2018 and December 31, 2017 was $3.2 million and $3.3 million, respectively. We also incurred interest expense on the capital lease of $0.1 million for each of the three month periods ended March 31, 2018 and 2017. Interest expense related to the debt recorded on the capital lease is included in interest expense on the condensed consolidated statements of operations. In 2017, we entered into two additional capital lease agreements for office related equipment in various worldwide locations. The total obligation recorded for the capital leases as of March 31, 2018 was $0.7 million. Depreciation expense related to the capital leases was $0.1 million for the three months ended March 31, 2018. These expenses are included as depreciation expense in selling, general and administrative expenses on our condensed consolidated statements of operations. Accumulated depreciation as of March 31, 2018 was $0.2 million. |
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Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill for the period ending March 31, 2018, by operating segment, were as follows:
Other Intangible Assets
Gross and net carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations. Amortization expense for the three months ended March 31, 2018 and 2017 was approximately $3.8 million and $3.3 million, respectively. The estimated future amortization expense is $11.5 million for the remainder of 2018 and $15.2 million, $11.8 million, $11.1 million and $10.7 million for 2019, 2020, 2021 and 2022, respectively. The indefinite-lived other intangible asset was acquired as part of the acquisition of Curamik Electronics GmbH. This asset is assessed for impairment annually, and between annual assessments if an event occurs or circumstances change that indicate the carrying value may not be recoverable. The definite-lived other intangible assets are amortized using a fair value methodology that is based on the projected economic use of the related underlying asset. The weighted average remaining amortization period as of March 31, 2018, by definite-lived other intangible asset class, is presented in the table below:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies We are currently engaged in the following 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. We recorded an accrual of $3.2 million as of December 31, 2015 for remediation costs expected to be incurred based on the facts and circumstances known to us at that time. During the third quarter of 2016, the CT DEEP approved a change to our remediation plan for the site that will reduce our overall expected costs. Accordingly, we reduced the accrual by $0.9 million as a result of a change in the level of remediation that needs to take place. This benefit was recorded as an offset to selling, general, and administrative expenses in the condensed consolidated statement of operations. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We have incurred aggregate remediation costs of $0.6 million through March 31, 2018, and the remaining accrual for future remediation efforts is $1.7 million. Superfund Sites We are currently involved as a potentially responsible party (PRP) in one active case involving a waste disposal site, the Chatham Superfund Site. The costs incurred since inception for this claim have been immaterial and have been primarily covered by insurance policies, for both legal and remediation costs. In this matter, we have been assessed a cost sharing percentage of approximately 2% in relation to the range for estimated total cleanup costs of $18.8 million to $29.6 million. We believe we have sufficient insurance coverage to fully cover this liability and have recorded a liability and related insurance receivable of approximately $0.4 million as of March 31, 2018, which approximates our share of the low end of the estimated range. We believe we are a de minimis participant and, as such, have been allocated an insignificant percentage of the total PRP cost sharing responsibility. Based on facts presently known to us, we believe that the potential for the final results of this case having a material adverse effect on our results of operations, financial position or cash flows is remote. This case has been ongoing for many years and we believe that it will continue for the indefinite future. No time frame for completion can be estimated at the present time. PCB Contamination We have been working with CT DEEP and the United States Environmental Protection Agency, Region I, in connection with certain polychlorinated biphenyl (PCB) contamination at our facility in Woodstock, Connecticut. The issue was originally discovered in the soil at the facility in the late 1990s, which has been remediated. Further contamination was later found in the groundwater beneath the property, which was addressed with the installation of a pump and treat system in 2011. The future costs related to the maintenance of the groundwater pump and treat system now in place at the site are expected to be minimal. We believe that the remaining remediation activity will continue for several more years and no time frame for completion can be estimated at the present time. PCB contamination at this facility was also found in the buildings and courtyards original to the site, in addition to surrounding areas, including an on-site pond. We have completed remediation activities for the buildings and courtyards. We currently have a reserve of $0.2 million for the pond remediation recorded in our condensed consolidated statements of financial position. We believe this reserve will be adequate to cover the remaining remediation work related to the pond contamination based on the information known at this time. However, if additional contamination is found, the cost of the remaining remediation may increase. Asbestos Litigation 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 presents information about our recent asbestos claims activity:
For the three months ended March 31, 2018, 74 claims were dismissed and 4 claims were settled. Settlements totaled approximately $2.5 million for the three months ended March 31, 2018. 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. Our estimates of asbestos-related contingent liabilities and related insurance receivables are based on an independent actuarial analysis and an independent insurance usage analysis prepared annually by third parties. The actuarial analysis contains numerous assumptions, including general assumptions regarding the asbestos-related product liability litigation environment and company-specific assumptions regarding claims rates (including diseases alleged), dismissal rates, average settlement costs and average defense costs. The insurance usage analysis considers, among other things, applicable deductibles, retentions and policy limits, the solvency and historical payment experience of various insurance carriers, the likelihood of recovery as estimated by external legal counsel and existing insurance settlements. We review our asbestos-related forecasts annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time we would analyze these forecasts. During 2017, we reviewed the projections of our current and future asbestos claims, and determined it was appropriate to extend the liability projection period to cover all current and future claims through 2058. We based our conclusion 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 expectation of a downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy. As a result, we believe we are now able to make a reasonable estimate of the actuarially determined liability for current and future asbestos claims through 2058, the expected end of our asbestos liability exposure. As of December 31, 2017, the balances of the asbestos-related claims and insurance receivables, which are projected to cover all current and future claims through 2058, were $76.2 million and $69.2 million, respectively. To date, the defense and settlement costs of our asbestos-related product liability litigation have been substantially covered by insurance. We have identified continuous coverage for primary, excess and umbrella insurance from the 1950s through the mid-1980s, except for a period in the early 1960s, with respect to which we have entered into an agreement for primary, but not excess or umbrella, coverage. 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 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. During the first quarter of 2018, we received notice that primary coverage for a period of eight years and excess coverage for a period of two years had been exhausted, and as a result, we incurred indemnity and defense costs of $0.3 million. These costs reduced our existing asbestos-related liabilities to $75.9 million as of March 31, 2018. We expect 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 believe that it is reasonably possible that we may incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves and insurance recovery. The amounts recorded for the asbestos-related liabilities and the related insurance receivables described above were 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. There can be no assurance that our accrued asbestos liabilities will approximate our actual asbestos-related settlement and defense costs, or that our accrued insurance recoveries will be realized. We believe that it is reasonably possible that we may incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves and insurance recovery. We will continue to vigorously defend ourselves and believe we have substantial unutilized insurance coverage to mitigate future costs related to this matter. General Litigation 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, after taking into account insurance coverage and the aforementioned accruals, will have a material adverse impact on our results of operations, financial position or cash flows. |
Share Repurchase |
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Equity [Abstract] | |||||||||||||||||||||
Share Repurchase | Share Repurchase On August 6, 2015, we initiated a share repurchase program (the Program) of up to $100.0 million of the Company’s capital stock. We initiated the Program to mitigate potentially dilutive effects of stock options and shares of restricted stock granted by the Company, in addition to enhancing shareholder value. The Program has no expiration date, and may be suspended or discontinued at any time without notice. As of March 31, 2018, $49.0 million remained available for repurchase under the Program. We repurchased the following shares of capital stock during the quarter ended March 31, 2018:
All repurchases were made using cash from operations. |
Income Taxes |
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Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax rate was 15.4% and 32.3% for the three months ended March 31, 2018 and 2017, respectively. The decrease was primarily due to a lower U.S. effective tax rate, as a result of U.S. tax reform, changes in pretax income mix across jurisdictions with disparate tax rates, excess tax deductions on stock based compensation, R&D credits and a release of reserves for uncertain tax positions, partially offset by an increase in current year accruals for uncertain tax positions. The total amount of unrecognized tax benefits as of March 31, 2018 was $11.8 million, of which $10.3 million would affect our effective tax rate if recognized. It is reasonably possible that approximately $3.7 million of our unrecognized tax benefits as of March 31, 2018 will reverse within the next twelve months. We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of March 31, 2018, we had $0.7 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 2013. |
Restructuring and Impairment Charges |
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Restructuring and Impairment Charges | Restructuring and Impairment Charges In the second quarter of 2017, we completed the physical relocation of our global headquarters from Rogers, Connecticut to Chandler, Arizona. We recorded $0.4 million and $0.7 million of expense related to this project in the three months ended March 31, 2018 and 2017, respectively. Severance activity related to the headquarters relocation is presented in the table below for the three month-period ended March 31, 2018:
The fair value of the total severance benefits to be paid (including payments already made) in connection with the relocation is $1.1 million, of which we expensed $0.1 million in the first quarter of 2018. The total severance costs are being expensed ratably over the required service period for the affected employees. |
Assets Held for Sale |
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Mar. 31, 2018 | |
Assets Held-for-sale, Not Part of Disposal Group [Abstract] | |
Assets Held for Sale | Assets Held for Sale In the second quarter of 2017, we began actively marketing for sale unutilized property in Chandler, Arizona, consisting of a building and two adjacent parcels of land with an aggregate net book value of $0.9 million. The assets are classified as held for sale and are no longer being depreciated. |
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Revenue from Contract with Customer | Revenue from Contracts with Customers Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to achieve a consistent application of revenue recognition, resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of our shipping terms permit us to recognize revenue at point of shipment. Some shipping terms require the goods to be through customs or be received by the customer before title passes. In those instances, revenue is not recognized until either the customer has received the goods or they have passed through customs, depending on the circumstances. Shipping and handling costs are treated as fulfillment costs. Sales tax or VAT are excluded from the measurement of the transaction price. The Company manufactures some products to customer specifications which are customized to such a degree that it is unlikely that another entity would purchase these products or that we could modify these products for another customer. These products are deemed to have no alternative use to the Company whereby we have an enforceable right to payment evidenced by contractual termination clauses. In accordance with ASC 606, for those circumstances we recognize revenue on an over-time basis. Revenue recognition does not occur until the product meets the definition of “no alternative use” and therefore, items that have not yet reached that point in the production process are not included in the population of items with over-time revenue recognition. As appropriate, we record estimated reductions to revenue for customer returns, allowances, and warranty claims. Provisions for such reductions are made at the time of sale and are typically derived from historical trends and other relevant information. Performance Obligations Manufactured goods are our primary performance obligations. Revenue related to our performance obligations is predominantly recognized at a point in time consistent with our shipping terms. For certain products that meet the criteria of no alternative use whereby the Company has the right to payment, we recognize revenue on an over-time basis. The selection of a method to measure progress toward completion of a contract requires judgment and is based on the nature of the products or services to be provided. We use the cost incurred method to measure the progress of our contracts with no alternative use products whereby the Company has the right to payment as we believe it is the best depiction of the transferring of value to the customer. Under the cost incurred method, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the contract. Contract costs include labor, materials and subcontractors costs, as well as an allocation of indirect costs. Revenues, including estimated fees or profits, are recorded as costs are incurred. Performance obligations are typically satisfied within three months of receipt of a customer order; therefore, a change in cost estimates will not have a material impact on the percentage of completion noted at the prior quarter end. Our typical payment terms with customers range from 30 days to 105 days. Product pricing is determined and negotiated on a standalone basis. Product pricing is determined without consideration for the pricing, margin, or other information specific to other products that the same customer or other parties related to that customer may also purchase, whether in the same or a different contract. Management allocates the transaction price to its performance obligations primarily based on stand-alone selling prices that may have been developed via specific customer quote for no alternative use products and non-standard products or standard price lists for standard products. The accounting for the estimate of variable consideration is consistent with our current practice. Contract modifications occur when there is a change to the products, price, or both. Contract modifications are treated as a separate contract if there are additions to promised goods and services that are distinct and if the price for that separate performance obligation reflects the stand-alone selling price for those goods or services. However, if the obligations in the contract modification are not distinct and are part of a single performance obligation that is only partially satisfied, the contract is not determined to be a separate contract and is accounted for as a revision to an existing contract. These modifications are accounted for prospectively when remaining promises are distinct from those previously transferred, or through a cumulative catch-up adjustment. Contract Balances The Company has 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 the contract assets on the condensed consolidated statements of financial position. The Company did not have any contract liabilities as of March 31, 2018. The following table presents contract assets by operating segment as of March 31, 2018:
No impairment losses were recognized during the three months ended March 31, 2018 on any receivables or contract assets arising from our contracts with customers. Transition We adopted ASU 2014-09 in the first quarter of 2018 retrospectively with the cumulative effect of applying the standard recognized at the date of implementation and without restatement of comparative periods. This application of the new standard resulted in an increase to the January 1, 2018 balance of retained earnings of approximately $4.2 million, net of tax. The guidance was applied to all contracts that were not completed at the date of implementation. The primary reason for the impact of adoption is due to over-time revenue recognition. If the criteria for over-time recognition are not met, revenue is recognized at a point in time. In considering at what point in time control of the product or service has transferred to the customer, we consider qualitative factors such as: 1) present right to payment; 2) legal title to the asset; 3) physical possession; 4) risks and rewards of ownership; and, 5) customer acceptance. The impact of adoption using the modified retrospective method on the Company’s condensed consolidated financial statements is as follows:
The following tables set forth the amount by which each financial statement line item is affected in the current reporting period by the application of ASC 606, as compared to the guidance that was in effect before its adoption. The impact of adoption on the condensed consolidated financial statements as of and for the three months ended March 31, 2018 is as follows:
Practical Expedients The Company will recognize the incremental costs of obtaining a contract as an expense when incurred as the amortization period of the asset is expected to be one year or less. The Company will not adjust the promised amount of consideration for the effects of a significant financing component as we expect, at contract inception, that the period between when the transfer of goods to our customer occurs and when the customer fully pays for the goods will be one year or less. We do not disclose the Company’s unsatisfied performance obligations as they are part of contracts that have an original expected duration of one year or less. |
Supplemental Financial Information |
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Supplemental Financial Information | Supplemental Financial Information The components of other operating (income) expense, net are as follows:
In the first quarter of 2018, we recorded a gain from the settlement of antitrust litigation in the amount of $3.6 million as a result of the settlement of a class action lawsuit, filed in 2005, which alleged that Dow Chemical Company and other urethane raw material suppliers unlawfully agreed to fix, raise, maintain or stabilize the prices of Polyether Polyol Products sold in the United States from January 1, 1999 through December 31, 2004 in violation of the federal antitrust laws. We recorded a receivable for this claim and received payment in April 2018. In the first quarter of 2017, we completed the planned sale of a parcel of land in Belgium that had been classified as held for sale as of December 31, 2016 and recognized a gain on sale of approximately $0.9 million. |
Recent Accounting Standards |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards In March 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU adds guidance that answers questions regarding how certain income tax effects from the Tax Cuts and Jobs Act (the Act) should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows for reclassification of stranded tax effects resulting from the Act from accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2018-02 will have on the Company’s consolidated financial statements and disclosures. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. Effective in the first quarter of 2018, the Company has elected to treat any potential GILTI inclusions as a period cost. In December 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we recorded provisional estimates for the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and tax expense associated with the mandatory deemed repatriation of foreign earnings at December 31, 2017. Management has continued to gather and analyze information associated with these provisional estimates and did not record any adjustments during the three months ended March 31, 2018. Any subsequent adjustment to these amounts will be recorded to tax expense in the quarter of 2018 when the analysis is complete. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Adoption of this standard will be applied prospectively to awards modified on or after the adoption date. The impact of this new standard will depend on the extent and nature of future changes to the terms and conditions of the Company’s share-based payment awards. The Company adopted this standard on January 1, 2018, which did not have a material effect on the condensed consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost. The changes to the standard require employers to report the service cost component in the same line item as other compensation costs arising from services rendered by employees during the reporting period. The other components of net periodic pension benefit costs will be presented in the statement of operations separately from the service cost and outside of a subtotal of operating income from operations. In addition, only the service cost component may be eligible for capitalization where applicable. ASU 2017-07 is effective for annual periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. In conjunction with the adoption of this guidance, the Company reclassified $0.4 million in net periodic pension benefits from Selling, general and administrative expenses to Other income (expense), net for the three months ended March 31, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to classify leases as either finance or operating leases and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. An accounting policy election may be made to account for leases with a term of 12 months or less similar to existing guidance for operating leases today. ASU No. 2016-02 supersedes the existing guidance on accounting for leases. The standard is effective for interim and annual reporting periods for fiscal years beginning after December 15, 2018. Early adoption of this standard is permitted and it is to be adopted using a modified retrospective approach. The Company has established an inventory of existing leases and is in the process of evaluating the classification of each lease and quantifying the accounting impact in accordance with the new standard. The Company expects to adopt this accounting standard beginning in fiscal year 2019. |
Subsequent Event |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Facility Consolidation On April 24, 2018, we made the decision to relocate our Santa Fe Springs, California operations to the Company’s facilities in Carol Stream, Illinois and Bear, Delaware. We expect to incur restructuring expenses of approximately $2.0 million in connection with the closure and transfer of production capabilities to the Carol Stream facility. These costs include approximately $0.8 million in severance and retention expenses and $1.2 million of costs related to the relocation of equipment. The Company estimates that approximately $1.5 million and $0.5 million of the costs will be incurred in fiscal years 2018 and 2019, respectively. Completion of the transfer, and start-up of production at other Company facilities, is expected to require capital expenditures of approximately $1.2 million to $1.4 million. Sale of Property In February 2018, we signed an agreement for the sale of a building and one parcel of land for an aggregate sales price of $1.1 million. The assets were classified as held for sale with an aggregate net book value of approximately $0.5 million as of March 31, 2018. The sale transaction closed in April 2018. |
Recent Accounting Standards (Policies) |
3 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards In March 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU adds guidance that answers questions regarding how certain income tax effects from the Tax Cuts and Jobs Act (the Act) should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows for reclassification of stranded tax effects resulting from the Act from accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2018-02 will have on the Company’s consolidated financial statements and disclosures. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. Effective in the first quarter of 2018, the Company has elected to treat any potential GILTI inclusions as a period cost. In December 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we recorded provisional estimates for the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and tax expense associated with the mandatory deemed repatriation of foreign earnings at December 31, 2017. Management has continued to gather and analyze information associated with these provisional estimates and did not record any adjustments during the three months ended March 31, 2018. Any subsequent adjustment to these amounts will be recorded to tax expense in the quarter of 2018 when the analysis is complete. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Adoption of this standard will be applied prospectively to awards modified on or after the adoption date. The impact of this new standard will depend on the extent and nature of future changes to the terms and conditions of the Company’s share-based payment awards. The Company adopted this standard on January 1, 2018, which did not have a material effect on the condensed consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost. The changes to the standard require employers to report the service cost component in the same line item as other compensation costs arising from services rendered by employees during the reporting period. The other components of net periodic pension benefit costs will be presented in the statement of operations separately from the service cost and outside of a subtotal of operating income from operations. In addition, only the service cost component may be eligible for capitalization where applicable. ASU 2017-07 is effective for annual periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. In conjunction with the adoption of this guidance, the Company reclassified $0.4 million in net periodic pension benefits from Selling, general and administrative expenses to Other income (expense), net for the three months ended March 31, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to classify leases as either finance or operating leases and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. An accounting policy election may be made to account for leases with a term of 12 months or less similar to existing guidance for operating leases today. ASU No. 2016-02 supersedes the existing guidance on accounting for leases. The standard is effective for interim and annual reporting periods for fiscal years beginning after December 15, 2018. Early adoption of this standard is permitted and it is to be adopted using a modified retrospective approach. The Company has established an inventory of existing leases and is in the process of evaluating the classification of each lease and quantifying the accounting impact in accordance with the new standard. The Company expects to adopt this accounting standard beginning in fiscal year 2019. |
Fair Value Measurements (Tables) |
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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, include:
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Hedging Transactions and Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional values of our copper contracts outstanding as of March 31, 2018 were:
As of March 31, 2018 the notional values of these foreign currency forward contracts were:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Effects on Statements of Operations and of Comprehensive Income (Loss):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories were as follows at the end of the periods noted below:
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Accumulated Other Comprehensive Loss (Tables) |
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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 for the three months ended March 31, 2018 and 2017 were as follows:
(1) Net of taxes of $9,549 and $9,563 as of March 31, 2018 and December 31, 2017, respectively. Net of taxes of $9,144 and $9,160 as of March 31, 2017 and December 31, 2016, respectively. (2) Net of taxes of $225 and $15 as of March 31, 2018 and December 31, 2017, respectively. Net of taxes of $65 and $0 as of March 31, 2017 and December 31, 2016, respectively. |
Earnings Per Share (Tables) |
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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 for the periods indicated:
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Stock-Based Compensation (Tables) |
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Assumptions Used in Calculation of Fair Value | Below were the assumptions used in the Monte Carlo calculation:
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Summary of Activity Under Stock Option Plans | A summary of the activity under our stock option plans during the three months ended March 31, 2018 and changes during the three months then ended, is presented below:
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Restricted Stock Activities | The following table summarizes the change in number of time-based restricted stock awards outstanding for the three months ended March 31, 2018:
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Restricted Stock Activities | The following table summarizes the change in number of performance-based restricted stock awards outstanding for the three months ended March 31, 2018:
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Restricted Stock Activities | The following table summarizes the change in number of deferred stock units outstanding during the three months ended March 31, 2018:
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Pension Benefits and Other Postretirement Benefit Plans (Tables) |
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Components of net periodic benefit cost | The components of net periodic (benefit) cost for the periods indicated were:
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segment Information | On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers. See Note 19, “Revenue from Contracts with Customers” for further information about this adoption. The Company sells products to fabricators and distributors who then sell directly into various end markets. Specifically, end markets within the ACS operating segment include wireless infrastructure, aerospace and defense, auto safety and connectivity, and consumer electronics. End markets within the EMS operating segment include general industrial, portable electronics, mass transit, and automotive. End markets within the PES operating segment include industrial, e-mobility, renewable energy, mass transit, and micro channel coolers. End markets in the Other operating segment include automotive and industrial. The following table presents a disaggregation of revenue from contracts with customers for the periods indicated; inter-segment sales have been eliminated from the net sales data:
(1) For comparison purposes, this table reflects the disaggregation of 2017 revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). The following table sets forth the operating income reconciliation to the condensed consolidated statements of operations for the periods indicated:
Information relating to our segment operations by geographic area was as follows:
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Joint Ventures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Joint Ventures Accounted for Under Equity Method of Accounting | As of March 31, 2018, we had two joint ventures, each 50% owned, which were accounted for under the equity method of accounting.
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Summarized Information for Joint Ventures | The summarized financial information for the joint ventures for the periods indicated was as follows:
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for the period ending March 31, 2018, by operating segment, were as follows:
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Intangible Assets | Other Intangible Assets
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Weighted Average Amortization Period, by Intangible Asset Class | The weighted average remaining amortization period as of March 31, 2018, by definite-lived other intangible asset class, is presented in the table below:
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Commitments and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table presents information about our recent asbestos claims activity:
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Share Repurchase - (Tables) |
3 Months Ended | ||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Schedule of Stock Repurchased | We repurchased the following shares of capital stock during the quarter ended March 31, 2018:
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Restructuring and Impairment Charges (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructuring and Related Costs | Severance activity related to the headquarters relocation is presented in the table below for the three month-period ended March 31, 2018:
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Revenue from Contracts with Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | The following table presents contract assets by operating segment as of March 31, 2018:
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of adoption using the modified retrospective method on the Company’s condensed consolidated financial statements is as follows:
The following tables set forth the amount by which each financial statement line item is affected in the current reporting period by the application of ASC 606, as compared to the guidance that was in effect before its adoption. The impact of adoption on the condensed consolidated financial statements as of and for the three months ended March 31, 2018 is as follows:
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Supplemental Financial Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Income Statement Supplemental Disclosures | The components of other operating (income) expense, net are as follows:
In the first quarter of 2018, we recorded a gain from the settlement of antitrust litigation in the amount of $3.6 million as a result of the settlement of a class action lawsuit, filed in 2005, which alleged that Dow Chemical Company and other urethane raw material suppliers unlawfully agreed to fix, raise, maintain or stabilize the prices of Polyether Polyol Products sold in the United States from January 1, 1999 through December 31, 2004 in violation of the federal antitrust laws. We recorded a receivable for this claim and received payment in April 2018. In the first quarter of 2017, we completed the planned sale of a parcel of land in Belgium that had been classified as held for sale as of December 31, 2016 and recognized a gain on sale of approximately $0.9 million. |
Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Gain (loss) on disposition of assets | $ (900) | |
Selling, general and administrative expenses | $ 40,597 | 34,569 |
Other operating (income) expense, net | 3,591 | 942 |
Other income (expense), net | $ 66 | 1,119 |
Accounting Standards Update 2017-07 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | (400) | |
Other income (expense), net | $ 400 |
Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details) $ in Millions |
Mar. 31, 2018
Contract
|
Mar. 31, 2017
USD ($)
|
Feb. 17, 2017
USD ($)
|
---|---|---|---|
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 (contract) | Contract | 24 | ||
Third Amended Credit Agreement | Revolving Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum borrowing capacity | $ 450.0 | ||
Interest rate swap | Third Amended Credit Agreement | Revolving Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged balance on debt instrument | $ 75.0 |
Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Contracts not designated as hedging instruments | Other income (expense), net | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Effect of current derivative instruments | $ (64) | $ 21 |
Fair Values of Derivative Instruments | (329) | 21 |
Contracts not designated as hedging instruments | Other income (expense), net | Copper Derivatives | ||
Derivative [Line Items] | ||
Effect of current derivative instruments | (822) | 215 |
Fair Values of Derivative Instruments | 1,105 | 1,342 |
Contracts designated as hedging instruments | Other comprehensive income (loss) | Interest rate swap | ||
Derivative [Line Items] | ||
Effect of current derivative instruments | 989 | (180) |
Fair Values of Derivative Instruments | $ 1,030 | $ (180) |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 47,344 | $ 43,092 |
Work-in-process | 26,160 | 28,133 |
Finished goods | 34,431 | 41,332 |
Total inventories | $ 107,935 | $ 112,557 |
Acquisitions - Additional Information (Details) - Diversified Silicone Products, Inc. $ in Millions |
Jan. 06, 2017
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Consideration transferred | $ 60.2 |
Revolving Credit Facility | |
Business Acquisition [Line Items] | |
Proceeds from line of credit | $ 30.0 |
Earnings Per Share (Computation of Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Numerator: | ||
Net income | $ 26,136 | $ 27,032 |
Denominator: | ||
Weighted-average shares outstanding - basic (shares) | 18,288,000 | 18,056,000 |
Effect of dilutive shares (shares) | 322,000 | 317,000 |
Weighted-average shares outstanding - diluted (shares) | 18,610,000 | 18,373,000 |
Basic earnings per share (in dollars per share) | $ 1.43 | $ 1.50 |
Diluted earnings per share (in dollars per share) | $ 1.40 | $ 1.47 |
Anti-dilutive shares excluded (shares) | 0 |
Stock-Based Compensation (Additional Information) (Details) |
3 Months Ended | 12 Months Ended | 63 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2018
shares
|
Mar. 31, 2018
USD ($)
offering_periods
shares
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2017 |
Jun. 30, 2017
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from sale of exercise of stock options, net | $ 473,000 | $ 765,000 | |||
Deferred Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense (income) | 0 | ||||
Stock vested (shares) | shares | 0 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, contractual term (years) | 10 years | ||||
Stock options, grants in period, gross | shares | 0 | ||||
Options exercised, total intrinsic value | $ 1,500,000 | ||||
Proceeds from sale of exercise of stock options, net | $ 500,000 | ||||
Performance-Based Restricted Stock | |||||
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 (income) | $ 1,000,000 | 100,000 | |||
Stock vested (shares) | shares | 81,230 | ||||
Performance-Based Restricted Stock | 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 | 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 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense (income) | $ 1,500,000 | 1,000,000 | |||
Stock vested (shares) | shares | 76,996 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense (income) | $ 100,000 | $ 100,000 | |||
Employee stock purchase plan, number of offering (offering period) | offering_periods | 2 | ||||
Employee stock purchase plan, offering period (months) | 6 months | ||||
Employee stock purchase plan, purchase price discount (percent) | 15.00% | ||||
Forecast | Time Based Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vested (shares) | shares | 2,200 |
Stock-Based Compensation (Monte Carlo Calculation Assumptions) (Details) - Performance-Based Restricted Stock |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility (percent) | 34.80% | 33.60% |
Expected term (years) | 3 years | 3 years |
Risk-free interest rate (percent) | 2.28% | 1.38% |
Stock-Based Compensation (Performance Based Restricted Stock Awards) (Details) - Performance-Based Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2018
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards outstanding beginning balance (shares) | 169,202 |
Awards granted (shares) | 72,160 |
Stock issued (shares) | (81,230) |
Awards forfeited (shares) | (1,735) |
Non-vested awards outstanding ending balance (shares) | 158,397 |
Stock-Based Compensation (Time Based Restricted Stock Awards) (Details) - Time Based Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2018
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards outstanding beginning balance (shares) | 173,331 |
Awards granted (shares) | 41,100 |
Stock issued (shares) | (76,996) |
Awards forfeited (shares) | (1,990) |
Non-vested awards outstanding ending balance (shares) | 135,445 |
Stock-Based Compensation (Deferred Stock Units) (Details) - Deferred Stock Units |
3 Months Ended |
---|---|
Mar. 31, 2018
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Conversion ratio | 1 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards outstanding beginning balance (shares) | 9,250 |
Awards granted (shares) | 0 |
Stock issued (shares) | 0 |
Non-vested awards outstanding ending balance (shares) | 9,250 |
Stock-Based Compensation (Summary of Activity Under Stock Option Plans) (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Options Outstanding | ||
Options outstanding at beginning of period (shares) | 33,283 | |
Options exercised (shares) | (11,383) | |
Options forfeited (shares) | 0 | |
Options outstanding at end of period (shares) | 21,900 | 33,283 |
Options exercisable at end of period (shares) | 21,900 | |
Options vested at end of period (shares) | 21,900 | |
Weighted- Average Exercise Price Per Share | ||
Options outstanding at beginning of period (in USD per share) | $ 36.40 | |
Options exercised (in USD per share) | 41.56 | |
Options forfeited (dollars per share) | 0.00 | |
Options outstanding at end of period (in USD per share) | 33.72 | $ 36.40 |
Options exercisable at end of peirod (in USD per share) | 33.72 | |
Options vested at end of period (in USD per share) | $ 33.72 | |
Weighted-Average Remaining Contractual Life in Years | ||
Weighted-Average Remaining Contractual Life in Year, Options outstanding | 2 years 1 month | 2 years 2 months |
Options exercisable, Weighted-Average Remaining Contractual Life in Years (years) | 2 years 1 month | |
Options vested, Weighted-Average Remaining Contractual Life in Years (years) | 2 years 1 month | |
Aggregate Intrinsic Value | ||
Options outstanding, Aggregate Intrinsic Value | $ 1,879,485 | $ 4,177,655 |
Options exercisable, Aggregate Intrinsic Value | 1,879,485 | |
Options vested, Aggregate Intrinsic Value | $ 1,879,485 |
Pension Benefits and Other Postretirement Benefit Plans (Additional Information) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018
plan
|
Mar. 31, 2017
USD ($)
|
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of qualified noncontributory defined benefit plans | plan | 2 | |
Bear Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Required employer contribution | $ | $ 0.1 |
Pension Benefits and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 1,680 | 1,841 |
Expected return on plan assets | (2,169) | (2,309) |
Amortization of prior service cost (credit) | 0 | 0 |
Amortization of net loss (gain) | 456 | 433 |
Net periodic (benefit) cost | (33) | (35) |
Retirement Health and Life Insurance Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 20 | 39 |
Interest cost | 15 | 18 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | (400) | (373) |
Amortization of net loss (gain) | 0 | (14) |
Net periodic (benefit) cost | $ (365) | $ (330) |
Segment Information (Income by Reportable Segments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 214,611 | $ 203,828 |
Operating income | 31,044 | 39,037 |
Equity income in unconsolidated joint ventures | 1,007 | 1,009 |
Other income (expense), net | 66 | 1,119 |
Interest expense, net | (1,210) | (1,248) |
Income before income tax expense | 30,907 | 39,917 |
Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 73,455 | 78,528 |
Operating income | 7,903 | 19,498 |
Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 78,083 | 76,864 |
Operating income | 14,159 | 12,790 |
Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 57,714 | 42,652 |
Operating income | 7,021 | 4,844 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,359 | 5,784 |
Operating income | 1,961 | 1,905 |
Recognized over time | ||
Segment Reporting Information [Line Items] | ||
Net sales | 63,087 | 48,036 |
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 | 1,039 | 667 |
Recognized over time | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 57,400 | 42,273 |
Recognized over time | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4,648 | 5,096 |
Recognized at a point in time | ||
Segment Reporting Information [Line Items] | ||
Net sales | 151,524 | 155,792 |
Recognized at a point in time | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 73,455 | 78,528 |
Recognized at a point in time | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 77,044 | 76,197 |
Recognized at a point in time | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 314 | 379 |
Recognized at a point in time | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 711 | 688 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Equity income in unconsolidated joint ventures | 1,007 | 1,009 |
Other income (expense), net | 66 | 1,119 |
Interest expense, net | (1,210) | (1,248) |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 59,805 | 61,129 |
United States | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 12,278 | 13,220 |
United States | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 37,692 | 38,104 |
United States | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,578 | 8,590 |
United States | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,257 | 1,215 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,815 | 3,526 |
Other Americas | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 826 | 567 |
Other Americas | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,801 | 2,472 |
Other Americas | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 358 | 303 |
Other Americas | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | (170) | 184 |
Total Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 62,620 | 64,655 |
Total Americas | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 13,104 | 13,787 |
Total Americas | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 39,493 | 40,576 |
Total Americas | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,936 | 8,893 |
Total Americas | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,087 | 1,399 |
China | ||
Segment Reporting Information [Line Items] | ||
Net sales | 65,040 | 62,047 |
China | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 33,507 | 37,423 |
China | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 20,794 | 16,915 |
China | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9,422 | 6,367 |
China | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,317 | 1,342 |
Other APAC | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31,742 | 31,902 |
Other APAC | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 15,338 | 15,924 |
Other APAC | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9,160 | 9,944 |
Other APAC | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6,451 | 5,119 |
Other APAC | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 793 | 915 |
Total APAC | ||
Segment Reporting Information [Line Items] | ||
Net sales | 96,782 | 93,949 |
Total APAC | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 48,845 | 53,347 |
Total APAC | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 29,954 | 26,859 |
Total APAC | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 15,873 | 11,486 |
Total APAC | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,110 | 2,257 |
Germany | ||
Segment Reporting Information [Line Items] | ||
Net sales | 23,871 | 20,486 |
Germany | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6,250 | 6,075 |
Germany | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,742 | 2,293 |
Germany | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 14,710 | 11,935 |
Germany | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 169 | 183 |
Other EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31,338 | 24,738 |
Other EMEA | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,256 | 5,319 |
Other EMEA | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,894 | 7,136 |
Other EMEA | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 18,195 | 10,338 |
Other EMEA | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,993 | 1,945 |
Total EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 55,209 | 45,224 |
Total EMEA | Advanced Connectivity Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 11,506 | 11,394 |
Total EMEA | Elastomeric Material Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,636 | 9,429 |
Total EMEA | Power Electronics Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 32,905 | 22,273 |
Total EMEA | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 2,162 | $ 2,128 |
Joint Ventures (Additional Information) (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018
USD ($)
joint_venture
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Schedule of Equity Method Investments [Line Items] | |||
Number of joint ventures that are 50% owned (entity) | joint_venture | 2 | ||
Equity income related to joint ventures | $ 1,007 | $ 1,009 | |
Due from joint ventures, current | $ 4,600 | $ 3,700 | |
Rogers INOAC Corporation (RIC) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in joint venture (percent) | 50.00% | ||
Corporate Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Due to related parties, current | $ 2,000 | $ 2,100 |
Joint Ventures (Accounted for Under Equity Method of Accounting) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | --12-31 |
Rogers INOAC Corporation (RIC) | Japan | High Performance Foams | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | --10-31 |
Rogers INOAC Suzhou Corporation (RIS) | China | High Performance Foams | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | --12-31 |
Joint Ventures (Summarized Information for Joint Ventures) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||
Net sales | $ 13,367 | $ 11,185 |
Gross profit | 5,230 | 4,311 |
Net income | $ 2,014 | $ 2,018 |
Debt (Additional Information) (Details) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Feb. 17, 2017
USD ($)
|
Jun. 18, 2015 |
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
capital_lease_agreement
|
Mar. 31, 2017
USD ($)
|
|
Debt Instrument [Line Items] | |||||
Outstanding line of credit issuance costs | $ 2,100,000 | ||||
Amortization expense | $ 100,000 | ||||
Debt instrument, leverage ratio, maximum | 2.75 | ||||
Capital lease obligation | $ 700,000 | ||||
Amortization expense related to the capital lease | $ 100,000 | ||||
Capital lease accumulated depreciation | 200,000 | ||||
Interest expense on capital lease | 100,000 | ||||
Number of capital lease agreements | capital_lease_agreement | 2 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Dividends | $ 20,000,000 | ||||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Variable rate lower range basis spread | 37.50% | ||||
Variable rate higher range basis spread | 75.00% | ||||
Line of credit, base reference rate description | The base reference rate is the greater of the prime rate; federal funds effective rate (or the overnight bank funding rate, if greater) plus 50 basis points; or adjusted 1-month LIBOR plus 100 basis points. | ||||
Amended Credit Facility | Federal Funds Effective Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Variable rate lower range basis spread | 0.50% | ||||
Amended Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable rate higher range basis spread | 1.00% | ||||
Third Amended Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 3.25 | ||||
One-time leverage ratio maximum option | 3.50 | ||||
ICR covenant limit | 3.00 | ||||
Eurocurrency loans | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of credit, LIBOR rate, minimum spread | 137.50% | ||||
Line of credit, LIBOR rate, maximum spread | 175.00% | ||||
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 | ||||
Outstanding borrowings | $ 131,000,000 | ||||
Revolving Credit Facility | Third Amended Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 20.00% | ||||
Revolving Credit Facility | Third Amended Credit Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 30.00% | ||||
Interest rate swap | Revolving Credit Facility | Third Amended Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Hedged balance on debt instrument | $ 75,000,000 | ||||
Germany | |||||
Debt Instrument [Line Items] | |||||
Capital lease, expiration date | 44561 | ||||
Capital lease obligation | $ 5,700,000 | ||||
Amortization expense related to the capital lease | 100,000 | ||||
Capital lease accumulated depreciation | $ 3,200,000 | $ 3,300,000 |
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Goodwill [Roll Forward] | |
December 31, 2017 | $ 237,107 |
Foreign currency translation adjustment | 1,945 |
March 31, 2018 | 239,052 |
Advanced Connectivity Solutions | |
Goodwill [Roll Forward] | |
December 31, 2017 | 51,693 |
Foreign currency translation adjustment | 0 |
March 31, 2018 | 51,693 |
Elastomeric Material Solutions | |
Goodwill [Roll Forward] | |
December 31, 2017 | 111,575 |
Foreign currency translation adjustment | 23 |
March 31, 2018 | 111,598 |
Power Electronics Solutions | |
Goodwill [Roll Forward] | |
December 31, 2017 | 71,615 |
Foreign currency translation adjustment | 1,922 |
March 31, 2018 | 73,537 |
Other | |
Goodwill [Roll Forward] | |
December 31, 2017 | 2,224 |
Foreign currency translation adjustment | 0 |
March 31, 2018 | $ 2,224 |
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 216,015 | $ 214,810 |
Accumulated Amortization | 63,883 | 59,270 |
Total intangible Assets, Gross Carrying Amount | 220,881 | 219,548 |
Net Carrying Amount | 152,132 | 155,540 |
Indefinite-lived other intangible asset | 4,866 | 4,738 |
Total intangible assets, Net Carrying Amount | 156,998 | 160,278 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 129,330 | 128,907 |
Accumulated Amortization | 24,675 | 22,514 |
Net Carrying Amount | 104,655 | 106,393 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 74,671 | 73,891 |
Accumulated Amortization | 35,645 | 33,491 |
Net Carrying Amount | 39,026 | 40,400 |
Trademarks and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,214 | 10,213 |
Accumulated Amortization | 2,413 | 2,157 |
Net Carrying Amount | 7,801 | 8,056 |
Covenants not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,800 | 1,799 |
Accumulated Amortization | 1,150 | 1,108 |
Net Carrying Amount | $ 650 | $ 691 |
Goodwill and Intangible Assets (Additional Information) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 3.8 | $ 3.3 |
Annual Future Amortization Expense | ||
Anticipated future amortization expense for 2018 | 11.5 | |
Anticipated future amortization expense for 2019 | 15.2 | |
Anticipated future amortization expense for 2020 | 11.8 | |
Anticipated future amortization expense for 2021 | 11.1 | |
Anticipated future amortization expense for 2022 | $ 10.7 |
Goodwill and Intangible Assets (Weighted Average Amortization Period by Intangible Asset Class) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 7 years 8 months 12 days |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 9 years |
Covenants not to compete | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 1 year 10 months 24 days |
Trademarks and patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 6 years |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 4 years 9 months 18 days |
Commitments and Contingencies (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018
USD ($)
LegalMatter
claims
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2017
USD ($)
claims
|
Dec. 31, 2015
USD ($)
|
|
Loss Contingencies [Line Items] | ||||
Number of pending claims (legal matter) | claims | 674 | 687 | ||
Number of claims dismissed | claims | 74 | |||
Number of claims settled (claim) | claims | 4 | |||
Claims settlements amount | $ 2.5 | |||
Asbestos-related claims | $ 75.9 | $ 76.2 | ||
Recorded third-party environmental recoveries receivable | $ 69.2 | |||
Primary coverage period | 8 years | |||
Excess coverage period | 2 years | |||
Indemnity and defense costs | $ 0.3 | |||
Connecticut Voluntary Corrective Action Program (VCAP) | ||||
Loss Contingencies [Line Items] | ||||
Estimated total cleanup costs, accrual | $ 3.2 | |||
Connecticut Voluntary Corrective Action Program | ||||
Loss Contingencies [Line Items] | ||||
Estimated total cleanup costs, accrual | 1.7 | |||
Loss contingency accrual, period decrease | $ (0.9) | |||
Environmental remediation expense | 0.6 | |||
Superfund Sites Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Estimated total cleanup costs, accrual | $ 0.4 | |||
Number of pending claims (legal matter) | LegalMatter | 1 | |||
Estimated total cleanup costs, cost sharing percentage | 2.00% | |||
PCB Contamination Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 0.2 | |||
Minimum | Superfund Sites Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, maximum possible loss | 18.8 | |||
Maximum | Superfund Sites Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, maximum possible loss | $ 29.6 |
Commitments and Contingencies (Schedule of Loss Contingencies) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
claims
| |
Liability for Asbestos and Environmental Claims [Roll Forward] | |
Claims outstanding at December 31, 2017 | 687 |
New claims filed | 65 |
Pending claims concluded | (78) |
Claims outstanding at March 31, 2018 | 674 |
Number of claims dismissed | 74 |
Number of claims settled (claim) | 4 |
Claims settlements amount | $ | $ 2.5 |
Commitments and Contingencies (Schedule of Total Estimated Liability for Asbestos) (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Asbestos-related claims | $ 75.9 | $ 76.2 |
Share Repurchase (Details) - USD ($) shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Aug. 06, 2015 |
|
Equity [Abstract] | ||
Authorized stock repurchase amount | $ 100,000,000 | |
Remaining authorized stock repurchase amount | $ 49,000,000 | |
Shares of capital stock repurchased | 23 | |
Value of capital stock repurchased | $ 2,999,000 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percent) | 15.40% | 32.30% |
Unrecognized tax benefits | $ 11.8 | |
Unrecognized tax benefits that would decrease the effective tax rate if recognized | 10.3 | |
Unrecognized tax benefits that could be recognized within 12 months | 3.7 | |
Unrecognized tax benefits, penalties accrued | $ 0.7 |
Restructuring and Impairment Charges - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Arizona | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 400 | $ 700 |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 53 | |
Expected cost to be paid | 1,100 | |
Cost expensed | $ 100 |
Restructuring and Impairment Charges - Schedule of Restructuring Costs (Details) - Employee Severance $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 183 |
Provisions | 53 |
Payments | (157) |
Ending balance | $ 79 |
Assets Held for Sale - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Assets held for sale | $ 896 | $ 896 | |
United States | |||
Property, Plant and Equipment [Line Items] | |||
Assets held for sale | $ 900 |
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 714,888 | $ 684,540 | |
Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Retained earnings | $ 714,888 | $ 688,752 | |
Minimum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Remaining performance obligation, expected timing of satisfaction, period | 30 days | ||
Maximum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Remaining performance obligation, expected timing of satisfaction, period | 105 days |
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) $ in Millions |
Mar. 31, 2018
USD ($)
|
---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract Assets | $ 22 |
Advanced Connectivity Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract Assets | 0 |
Elastomeric Material Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract Assets | 0 |
Power Electronics Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract Assets | 18 |
Other | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract Assets | $ 4 |
Revenue from Contracts with Customers - Impact of Adoption of New Accounting Principle (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|
Condensed Consolidated Statements of Financial Position: | ||||
Inventory | $ 107,935 | $ 112,557 | ||
Retained earnings | 714,888 | 684,540 | ||
Condensed Consolidated Statement of Income | ||||
Net sales | 214,611 | $ 203,828 | ||
Cost of sales | 138,005 | 123,478 | ||
Income tax expense | 4,771 | 12,885 | ||
Net income | $ 26,136 | $ 27,032 | ||
Basic earnings per share (in dollars per share) | $ 1.43 | $ 1.50 | ||
Diluted earnings per share (in dollars per share) | $ 1.40 | $ 1.47 | ||
Condensed Consolidated Statement of Cash Flows: | ||||
Deferred income taxes | $ 1,342 | $ 3,516 | ||
Contract assets | (22,040) | 0 | ||
Inventories | 5,813 | (769) | ||
Other, net | 6,355 | 742 | ||
Net cash provided by operating activities | 8,768 | $ 23,234 | ||
Accounting Standards Update 2014-09 | ||||
Condensed Consolidated Statements of Financial Position: | ||||
Contract assets | 22,040 | $ 18,099 | ||
Inventory | 107,935 | 100,250 | ||
Deferred income taxes | 13,086 | 12,286 | ||
Retained earnings | 714,888 | 688,752 | ||
Under ASC 605 | ||||
Condensed Consolidated Statement of Income | ||||
Net sales | 210,670 | |||
Cost of sales | 135,325 | |||
Income tax expense | 4,438 | |||
Net income | $ 25,208 | |||
Basic earnings per share (in dollars per share) | $ 1.38 | |||
Diluted earnings per share (in dollars per share) | $ 1.35 | |||
Condensed Consolidated Statement of Cash Flows: | ||||
Deferred income taxes | $ (571) | |||
Contract assets | 0 | |||
Inventories | (9,174) | |||
Other, net | 2,143 | |||
Net cash provided by operating activities | 8,768 | |||
Under ASC 605 | Accounting Standards Update 2014-09 | ||||
Condensed Consolidated Statements of Financial Position: | ||||
Contract assets | 0 | 0 | ||
Inventory | 122,922 | 112,557 | ||
Deferred income taxes | 11,173 | 10,706 | ||
Retained earnings | 709,748 | $ 684,540 | ||
Impact of Adoption | ||||
Condensed Consolidated Statement of Income | ||||
Net sales | 3,941 | |||
Cost of sales | 2,680 | |||
Income tax expense | 333 | |||
Net income | $ 928 | |||
Basic earnings per share (in dollars per share) | $ 0.05 | |||
Diluted earnings per share (in dollars per share) | $ 0.05 | |||
Condensed Consolidated Statement of Cash Flows: | ||||
Deferred income taxes | $ 1,913 | |||
Contract assets | (22,040) | |||
Inventories | 14,987 | |||
Other, net | 4,212 | |||
Net cash provided by operating activities | 0 | |||
Impact of Adoption | Accounting Standards Update 2014-09 | ||||
Condensed Consolidated Statements of Financial Position: | ||||
Contract assets | 22,040 | 18,099 | ||
Inventory | (14,987) | (12,307) | ||
Deferred income taxes | 1,913 | 1,580 | ||
Retained earnings | $ 5,140 | $ 4,212 |
Supplemental Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Long Lived Assets Held-for-sale [Line Items] | ||
Gain from antitrust litigation settlement | $ (3,591) | |
Gain (loss) on disposition of assets | $ (900) | |
Belgium | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Gain (loss) on disposition of assets | $ (900) |
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | $ 40,597 | $ 34,569 |
Other income (expense), net | $ 66 | 1,119 |
Accounting Standards Update 2017-07 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | (400) | |
Other income (expense), net | $ 400 |
Subsequent Event - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Apr. 26, 2018 |
Apr. 30, 2018 |
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring charges | $ 2.0 | |||||
Severance and retention expenses | 0.8 | |||||
Restructuring costs | $ 1.2 | |||||
Property plant and equipment, held for sale | $ 0.5 | |||||
Arizona | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring charges | $ 0.4 | $ 0.7 | ||||
Arizona | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Sales price | $ 1.1 | |||||
Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Expected cost to be paid | $ 0.5 | $ 1.5 | ||||
Estimated capital expenditures | $ 1.4 | $ 1.2 |
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