QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of | (I. R. S. Employer Identification No.) |
Incorporation or Organization) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
par value $1.00 per share |
ý | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company |
TABLE OF CONTENTS | |||
Part I – Financial Information | |||
Part II – Other Information | |||
Item 1. | Financial Statements |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||
Cost of sales | |||||||||||||||
Gross margin | |||||||||||||||
Selling, general and administrative expenses | |||||||||||||||
Research and development expenses | |||||||||||||||
Restructuring and impairment charges | |||||||||||||||
Other operating (income) expense, net | ( | ) | ( | ) | |||||||||||
Operating income | |||||||||||||||
Equity income in unconsolidated joint ventures | |||||||||||||||
Other income (expense), net | ( | ) | ( | ) | |||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before income tax expense | |||||||||||||||
Income tax expense | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||
Shares used in computing: | |||||||||||||||
Basic earnings per share | |||||||||||||||
Diluted earnings per share |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | |||||||||
Derivative instrument designated as cash flow hedge: | |||||||||||||||
Change in unrealized gain (loss) before reclassifications, net of tax (Note 4) | ( | ) | ( | ) | |||||||||||
Unrealized (gain) loss reclassified into earnings, net of tax (Note 4) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Pension and other postretirement benefits: | |||||||||||||||
Amortization of loss, net of tax (Note 4) | |||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | |||||||||
Comprehensive income | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, less allowance for doubtful accounts of $1,215 and $1,354 | |||||||
Contract assets | |||||||
Inventories | |||||||
Prepaid income taxes | |||||||
Asbestos-related insurance receivables, current portion | |||||||
Other current assets | |||||||
Total current assets | |||||||
Property, plant and equipment, net of accumulated depreciation of $331,553 and $317,414 | |||||||
Investments in unconsolidated joint ventures | |||||||
Deferred income taxes | |||||||
Goodwill | |||||||
Other intangible assets, net of amortization | |||||||
Pension assets | |||||||
Asbestos-related insurance receivables, non-current portion | |||||||
Other long-term assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | $ | |||||
Accrued employee benefits and compensation | |||||||
Accrued income taxes payable | |||||||
Asbestos-related liabilities, current portion | |||||||
Other accrued liabilities | |||||||
Total current liabilities | |||||||
Borrowings under revolving credit facility | |||||||
Pension and other postretirement benefits liabilities | |||||||
Asbestos-related liabilities, non-current portion | |||||||
Non-current income tax | |||||||
Deferred income taxes | |||||||
Other long-term liabilities | |||||||
Commitments and contingencies (Note 13) | |||||||
Shareholders’ equity | |||||||
Capital stock - $1 par value; 50,000 authorized shares; 18,559 and 18,395 shares issued and outstanding | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total shareholders' equity | |||||||
Total liabilities and shareholders' equity | $ | $ |
Six Months Ended | |||||||
June 30, 2019 | June 30, 2018 | ||||||
Operating Activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Equity compensation expense | |||||||
Deferred income taxes | ( | ) | |||||
Equity in undistributed income of unconsolidated joint ventures | ( | ) | ( | ) | |||
Dividends received from unconsolidated joint ventures | |||||||
Pension and other postretirement benefits | ( | ) | ( | ) | |||
Asbestos-related charges | |||||||
Loss (gain) on sale or disposal of property, plant and equipment | ( | ) | |||||
Impairment charges | |||||||
Benefit for doubtful accounts | ( | ) | ( | ) | |||
Changes in assets and liabilities: | |||||||
Accounts receivable | ( | ) | ( | ) | |||
Contract assets | ( | ) | ( | ) | |||
Inventories | ( | ) | ( | ) | |||
Pension and postretirement benefit contributions | ( | ) | ( | ) | |||
Other current assets | ( | ) | ( | ) | |||
Accounts payable and other accrued expenses | ( | ) | |||||
Other, net | |||||||
Net cash provided by operating activities | |||||||
Investing Activities: | |||||||
Capital expenditures | ( | ) | ( | ) | |||
Proceeds from the sale of property, plant and equipment, net | |||||||
Return of capital from unconsolidated joint ventures | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Financing Activities: | |||||||
Repayment of debt principal and finance lease obligations | ( | ) | ( | ) | |||
Payments of taxes related to net share settlement of equity awards | ( | ) | ( | ) | |||
Proceeds from the exercise of stock options, net | |||||||
Proceeds from issuance of shares to employee stock purchase plan | |||||||
Share repurchases | ( | ) | |||||
Net cash used in financing activities | ( | ) | ( | ) | |||
Effect of exchange rate fluctuations on cash | ( | ) | ( | ) | |||
Net increase (decrease) in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental Disclosures: | |||||||
Accrued capital additions | $ | $ | |||||
Cash paid during the year for: | |||||||
Interest, net of amounts capitalized | $ | $ | |||||
Income taxes | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Capital Stock | |||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||
Shares issued for vested restricted stock units, net of cancellations for tax withholding | |||||||||||||||
Stock options exercised | |||||||||||||||
Shares issued for employee stock purchase plan | |||||||||||||||
Shares issued to directors | |||||||||||||||
Shares repurchased | ( | ) | |||||||||||||
Balance, end of period | |||||||||||||||
Additional Paid-In Capital | |||||||||||||||
Balance, beginning of period | |||||||||||||||
Shares issued for vested restricted stock units, net of cancellations for tax withholding | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Stock options exercised | |||||||||||||||
Shares issued for employee stock purchase plan | |||||||||||||||
Shares issued to directors | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Equity compensation expense | |||||||||||||||
Shares repurchased | ( | ) | |||||||||||||
Balance, end of period | |||||||||||||||
Retained Earnings | |||||||||||||||
Balance, beginning of period | |||||||||||||||
Net income | |||||||||||||||
Cumulative-effect adjustment for lease accounting | ( | ) | |||||||||||||
Cumulative-effect adjustment of revenue recognition | |||||||||||||||
Balance, end of period | |||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||
Balance, beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | |||||||||
Balance, end of period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total Shareholders’ Equity | $ | $ | $ | $ |
• | 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 June 30, 2019 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Foreign currency contracts | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Copper derivative contracts | $ | $ | $ | $ | |||||||||||
Interest rate swap | $ | $ | ( | ) | $ | $ | ( | ) |
Derivative Instruments at Fair Value as of December 31, 2018 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Foreign currency contracts | $ | $ | $ | $ | |||||||||||
Copper derivative contracts | $ | $ | $ | $ | |||||||||||
Interest rate swap | $ | $ | $ | $ |
• | Foreign Currency - The fair value of any foreign currency option derivative is based upon valuation models applied to current market information such as strike price, spot rate, maturity date and volatility, and by reference to market values resulting from an over-the-counter market or obtaining market data for similar instruments with similar characteristics. |
• | Commodity - The fair value of copper derivatives is computed using a combination of intrinsic and time value valuation models, which are collectively a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate and volatility. The intrinsic valuation model reflects the difference between the strike price of the underlying copper derivative instrument and the current prevailing copper prices in an over-the-counter market at period end. The time value valuation model incorporates changes in the price of the underlying copper derivative instrument, the time value of money, the underlying copper derivative instrument’s strike price and the remaining time to the underlying copper derivative instrument’s expiration date from the period end date. |
• | Interest Rates - The fair value of interest rate swap instruments is derived by comparing the present value of the interest rate forward curve against the present value of the swap rate, relative to the notional amount of the swap. The net value represents the estimated amount we would receive or pay to terminate the agreements. Settlement amounts for an “in the money” swap would be adjusted down to compensate the counterparty for cost of funds, and the adjustment is directly related to the counterparties’ credit ratings. |
Notional Values of Foreign Currency Derivatives | |||
USD/CNY | $ | ||
KRW/USD | ₩ | ||
EUR/USD | € |
Volume of Copper Derivatives | |
July 2019 - September 2019 | 191 metric tons per month |
October 2019 - December 2019 | 195 metric tons per month |
January 2020 - March 2020 | 202 metric tons per month |
April 2020 - June 2020 | 202 metric tons per month |
July 2020 - September 2020 | 201 metric tons per month |
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the Period Ended June 30, 2019 | Fair Values of Derivative Instruments as of June 30, 2019 | ||||||||||||
Gain (Loss) | Other Assets/ (Other Liabilities)(1) | |||||||||||||
Location | Three Months Ended | Six Months Ended | ||||||||||||
Foreign Currency Contracts | ||||||||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | $ | ( | ) | $ | ( | ) | ||||||
Copper Derivative Contracts | ||||||||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | ( | ) | $ | ( | ) | $ | ||||||
Interest Rate Swap | ||||||||||||||
Contract designated as hedging instrument | Other comprehensive income (loss) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the Period Ended June 30, 2018 | Fair Values of Derivative Instruments as of June 30, 2018 | ||||||||||||
Gain (Loss) | Other Assets/(Other Liabilities)(1) | |||||||||||||
Location | Three Months Ended | Six Months Ended | ||||||||||||
Foreign Currency Contracts | ||||||||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | ( | ) | $ | ( | ) | $ | ||||||
Copper Derivative Contracts | ||||||||||||||
Contracts not designated as hedging instruments | Other income (expense), net | $ | ( | ) | $ | ( | ) | $ | ||||||
Interest Rate Swap | ||||||||||||||
Contract designated as hedging instrument | Other comprehensive income (loss) | $ | $ | $ |
(Dollars and accompanying footnotes in thousands) | Foreign Currency Translation Adjustments | Pension and Other Postretirement Benefits(1) | Derivative Instrument Designated as Cash Flow Hedge(2) | Total | |||||||||||
Balance as of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | |||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ( | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ) | |||||||||||||
Net current-period other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | |||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Balance as of December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | |||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ) | |||||||||||||
Net current-period other comprehensive income (loss) | ( | ) | ( | ) | |||||||||||
Balance as of June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
Three Months Ended | Six Months Ended | ||||||
(Dollars in thousands) | June 30, 2018 | June 30, 2018 | |||||
Net sales | $ | $ | |||||
Net income |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
Raw materials | $ | $ | |||||
Work-in-process | |||||||
Finished goods | |||||||
Total inventories | $ | $ |
(Dollars in thousands) | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | ||||||||||||||
December 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | |||||||||||||
June 30, 2019 | $ | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
(Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Customer relationships | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Technology | |||||||||||||||||||||||
Trademarks and trade names | |||||||||||||||||||||||
Covenants not to compete | |||||||||||||||||||||||
Total definite-lived other intangible assets | |||||||||||||||||||||||
Indefinite-lived other intangible asset | — | — | |||||||||||||||||||||
Total other intangible assets | $ | $ | $ | $ | $ | $ |
Definite-Lived Other Intangible Asset Class | Weighted Average Remaining Amortization Period | |
Customer relationships | ||
Technology | ||
Trademarks and trade names | ||
Covenants not to compete | ||
Total definite-lived other intangible assets |
(In thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Denominator: | |||||||||||||||
Weighted-average shares outstanding - basic | |||||||||||||||
Effect of dilutive shares | |||||||||||||||
Weighted-average shares outstanding - diluted | |||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||
Diluted earnings per share | $ | $ | $ | $ |
June 3, 2019 | February 7, 2019 | September 17, 2018 | February 8, 2018 | ||||
Expected volatility | |||||||
Expected term (in years) | |||||||
Risk-free interest rate |
Performance-Based Restricted Stock Units | ||
Awards outstanding as of December 31, 2018 | ||
Awards granted | ||
Stock issued | ( | ) |
Awards forfeited | ( | ) |
Awards outstanding as of June 30, 2019 |
Time-Based Restricted Stock Units | ||
Awards outstanding as of December 31, 2018 | ||
Awards granted | ||
Stock issued | ( | ) |
Awards forfeited | ( | ) |
Awards outstanding as of June 30, 2019 |
Deferred Stock Units | ||
Awards outstanding as of December 31, 2018 | ||
Awards granted | ||
Stock issued | ( | ) |
Awards outstanding as of June 30, 2019 |
Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted-Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | |||||||||
Options outstanding, vested and exercisable as of December 31, 2018 | $ | $ | ||||||||||
Options exercised | ( | ) | $ | |||||||||
Options expired | ( | ) | $ | |||||||||
Options outstanding, vested and exercisable as of June 30, 2019 | $ | $ |
(Dollars in thousands) | Three Months Ended | Six Months Ended | |||
June 30, 2019 | June 30, 2019 | ||||
Operating leases expense | |||||
Short-term leases expense | |||||
Payments on operating lease obligations |
(Dollars in thousands) | Location in Statements of Financial Position | June 30, 2019 | December 31, 2018 | ||||||
Finance lease right-of-use assets | Property, plant and equipment, net | $ | $ | ||||||
Operating lease right-of-use assets | Other long-term assets | $ | $ | ||||||
Finance lease obligations, current portion | Other accrued liabilities | $ | $ | ||||||
Finance lease obligations, non-current portion | Other long-term liabilities | $ | $ | ||||||
Total finance lease obligations | $ | $ | |||||||
Operating lease obligations, current portion | Other accrued liabilities | $ | $ | ||||||
Operating lease obligations, non-current portion | Other long-term liabilities | $ | $ | ||||||
Total operating lease obligations | $ | $ |
(Dollars in thousands) | Finance | Operating | |||||||||||||
Leases | Leases Signed | Less: Leases Not Yet Commenced | Leases | ||||||||||||
2019 | $ | $ | $ | $ | |||||||||||
2020 | |||||||||||||||
2021 | |||||||||||||||
2022 | |||||||||||||||
2023 | |||||||||||||||
Thereafter | |||||||||||||||
Total Lease Payments | |||||||||||||||
Less: Interest | ( | ) | ( | ) | ( | ) | |||||||||
Present Value of Net Future Minimum Lease Payments | $ | $ | $ | $ |
Finance Leases | Operating Leases | ||
Weighted Average Remaining Lease Term | |||
Weighted Average Discount Rate |
Pension Benefits | Retirement Health and Life Insurance Benefits | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||
Expected return of plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Amortization of prior service credit | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Amortization of net loss | |||||||||||||||||||||||||||||||
Net periodic cost (benefit) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Asbestos Claims | ||
Claims outstanding as of December 31, 2018 | ||
New claims filed | ||
Pending claims concluded(1) | ( | ) |
Claims outstanding as of June 30, 2019 |
(Dollars in millions) | June 30, 2019 | December 31, 2018 | |||||
Asbestos-related claims | $ | $ | |||||
Asbestos-related insurance receivables | $ | $ |
(Dollars in thousands) | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | |||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||
Net sales - recognized over time | $ | $ | $ | $ | $ | |||||||||||||||
Net sales - recognized at a point in time | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ | |||||||||||||||
Operating income | $ | $ | $ | ( | ) | $ | $ | |||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||||||
Net sales - recognized over time | $ | $ | $ | $ | $ | |||||||||||||||
Net sales - recognized at a point in time | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ | |||||||||||||||
Operating income | $ | $ | $ | $ | $ | |||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||||
Net sales - recognized over time | $ | $ | $ | $ | $ | |||||||||||||||
Net sales - recognized at a point in time | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ | |||||||||||||||
Operating income | $ | $ | $ | $ | $ | |||||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||||||
Net sales - recognized over time | $ | $ | $ | $ | $ | |||||||||||||||
Net sales - recognized at a point in time | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ | |||||||||||||||
Operating income | $ | $ | $ | $ | $ |
(Dollars in thousands) | Net Sales (1) | |||||||||||||||||||
Region/Country | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||||||
Other Americas | ||||||||||||||||||||
Total Americas | ||||||||||||||||||||
China | ||||||||||||||||||||
Other APAC | ||||||||||||||||||||
Total APAC | ||||||||||||||||||||
Germany | ||||||||||||||||||||
Other EMEA | ||||||||||||||||||||
Total EMEA | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ | |||||||||||||||
June 30, 2018 | ||||||||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||||||
Other Americas | ||||||||||||||||||||
Total Americas | ||||||||||||||||||||
China | ||||||||||||||||||||
Other APAC | ||||||||||||||||||||
Total APAC | ||||||||||||||||||||
Germany | ||||||||||||||||||||
Other EMEA | ||||||||||||||||||||
Total EMEA | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ |
(1) | Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated. |
(Dollars in thousands) | Net Sales (1) | |||||||||||||||||||
Region/Country | Advanced Connectivity Solutions | Elastomeric Material Solutions | Power Electronics Solutions | Other | Total | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||||||
Other Americas | ||||||||||||||||||||
Total Americas | ||||||||||||||||||||
China | ||||||||||||||||||||
Other APAC | ||||||||||||||||||||
Total APAC | ||||||||||||||||||||
Germany | ||||||||||||||||||||
Other EMEA | ||||||||||||||||||||
Total EMEA | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ | |||||||||||||||
June 30, 2018 | ||||||||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||||||
Other Americas | ||||||||||||||||||||
Total Americas | ||||||||||||||||||||
China | ||||||||||||||||||||
Other APAC | ||||||||||||||||||||
Total APAC | ||||||||||||||||||||
Germany | ||||||||||||||||||||
Other EMEA | ||||||||||||||||||||
Total EMEA | ||||||||||||||||||||
Total net sales | $ | $ | $ | $ | $ |
(1) | Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated. |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
Advanced Connectivity Solutions | $ | $ | |||||
Elastomeric Material Solutions | |||||||
Power Electronics Solutions | |||||||
Other | |||||||
Total contract assets | $ | $ |
(Dollars in thousands) | Severance Related to Facility Consolidation | ||
Balance as of December 31, 2018 | $ | ||
Provisions | |||
Payments | ( | ) | |
Balance as of June 30, 2019 | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Gain from antitrust litigation settlement | $ | $ | $ | $ | ( | ) | |||||||||
Loss (gain) on sale of property, plant and equipment | ( | ) | ( | ) | |||||||||||
Lease income | ( | ) | ( | ) | |||||||||||
Depreciation on leased assets | |||||||||||||||
Total other operating (income) expense, net | $ | $ | ( | ) | $ | $ | ( | ) |
Item 2. | Management’s Discussion and Analysis of Results of Operations and Financial Position |
• | failure to capitalize on, volatility within, or other adverse changes with respect to the Company’s growth drivers, including advanced mobility and advanced connectivity, such as delays in adoption or implementation of new technologies; |
• | 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; |
• | the ongoing trade policy dispute between the United States and China, as well as adverse changes in trade policy, tariff regulation or other trade restrictions, including trade restrictions on Huawei Technologies Co., Ltd.; |
• | fluctuations in foreign currency exchange rates; |
• | our ability to develop innovative products and the extent to which they are 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 and 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; |
• | uncertainties with regard to the timing, expense and cash outlays associated with the termination and settlement of the Rogers Corporation Defined Benefit Pension Plan (Merged Plan); and |
• | disruptions in, or breaches of, our information technology systems. |
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Gross margin | 35.3 | % | 35.7 | % | 35.5 | % | 35.7 | % | |||
Selling, general and administrative expenses | 18.0 | % | 19.8 | % | 18.0 | % | 19.4 | % | |||
Research and development expenses | 3.2 | % | 4.1 | % | 3.2 | % | 3.9 | % | |||
Restructuring and impairment charges | 0.4 | % | 0.3 | % | 0.4 | % | 0.2 | % | |||
Other operating (income) expense, net | 0.1 | % | (0.2 | )% | 0.3 | % | (0.9 | )% | |||
Operating income | 13.7 | % | 11.7 | % | 13.7 | % | 13.1 | % | |||
Equity income in unconsolidated joint ventures | 0.7 | % | 0.8 | % | 0.5 | % | 0.7 | % | |||
Other income (expense), net | (0.6 | )% | — | % | — | % | — | % | |||
Interest expense, net | (0.8 | )% | (0.5 | )% | (0.8 | )% | (0.6 | )% | |||
Income before income tax expense | 13.0 | % | 12.0 | % | 13.4 | % | 13.2 | % | |||
Income tax expense | 3.0 | % | 3.9 | % | 2.5 | % | 3.1 | % | |||
Net income | 10.0 | % | 8.1 | % | 10.9 | % | 10.1 | % |
Net Sales and Gross Margin | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Net sales | $ | 242,852 | $ | 214,675 | 13.1% | $ | 482,650 | $ | 429,286 | 12.4% |
Selling, General and Administrative Expenses | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Selling, general and administrative expenses | $ | 43,649 | $ | 42,540 | 2.6% | $ | 86,901 | $ | 83,137 | 4.5% | ||||||||||
Percentage of net sales | 18.0 | % | 19.8 | % | 18.0 | % | 19.4 | % |
Research and Development Expenses | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Research and development expenses | $ | 7,843 | $ | 8,750 | (10.4)% | $ | 15,452 | $ | 16,884 | (8.5)% | ||||||||||
Percentage of net sales | 3.2 | % | 4.1 | % | 3.2 | % | 3.9 | % |
Restructuring and Impairment Charges and Other Operating Expenses (Income), Net | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Restructuring and impairment charges | $ | 1,083 | $ | 541 | 100.2% | $ | 1,905 | $ | 963 | 97.8% | ||||||||||
Other operating (income) expense, net | 40 | (383 | ) | (110.4)% | 951 | (3,974 | ) | (123.9)% |
Equity Income in Unconsolidated Joint Ventures | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Equity income in unconsolidated joint ventures | $ | 1,742 | $ | 1,804 | (3.4)% | $ | 2,579 | $ | 2,811 | (8.3)% |
Other Income (Expense), Net | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Other income (expense), net | $ | (1,401 | ) | $ | (34 | ) | 4,020.6% | $ | 3 | $ | 32 | (90.6)% |
Interest Expense, Net | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Interest expense, net | $ | (2,038 | ) | $ | (1,292 | ) | 57.7% | $ | (3,976 | ) | $ | (2,503 | ) | 58.8% |
Income Taxes | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | Percent Change | June 30, 2019 | June 30, 2018 | Percent Change | ||||||||||||||
Income tax expense | $ | 7,223 | $ | 8,373 | (13.7)% | $ | 11,927 | $ | 13,144 | (9.3)% | ||||||||||
Effective tax rate | 22.9 | % | 32.6 | % | 18.5 | % | 23.2 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Net sales | $ | 92,529 | $ | 76,376 | $ | 172,999 | $ | 149,831 | |||||||
Operating income | $ | 18,458 | $ | 10,594 | $ | 31,522 | $ | 18,496 |
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Net sales | $ | 93,894 | $ | 79,216 | $ | 186,656 | $ | 157,299 | |||||||
Operating income | $ | 15,326 | $ | 8,421 | $ | 28,757 | $ | 22,581 |
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Net sales | $ | 51,662 | $ | 53,647 | $ | 111,476 | $ | 111,360 | |||||||
Operating income (loss) | $ | (1,884 | ) | $ | 4,239 | $ | 2,383 | $ | 11,260 |
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in thousands) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Net sales | $ | 4,767 | $ | 5,436 | $ | 11,519 | $ | 10,796 | |||||||
Operating income | $ | 1,313 | $ | 1,970 | $ | 3,351 | $ | 3,932 |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
United States | $ | 39,240 | $ | 41,833 | |||
Europe | 32,613 | 31,244 | |||||
Asia | 101,215 | 94,661 | |||||
Total cash and cash equivalents | $ | 173,068 | $ | 167,738 |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
Key Financial Position Accounts: | |||||||
Cash and cash equivalents | $ | 173,068 | $ | 167,738 | |||
Accounts receivable, net | $ | 156,924 | $ | 144,623 | |||
Contract assets | $ | 25,573 | $ | 22,728 | |||
Inventories | $ | 135,067 | $ | 132,637 | |||
Borrowings under revolving credit facility | $ | 195,482 | $ | 228,482 |
• | Accounts receivable, net increased 8.5% to $156.9 million as of June 30, 2019, from $144.6 million as of December 31, 2018. The increase from year-end was primarily due to higher net sales at the end of the second quarter of 2019 compared to at the end of the 2018. |
• | Contract assets increased 12.5% to $25.6 million as of June 30, 2019, from $22.7 million as of December 31, 2018, as a result of an increase in no-alternative-use inventory, mainly attributable to the increase in demand over the first six months of 2019 in our PES operating segment. |
• | Inventories increased 1.8% to $135.1 million as of June 30, 2019, from $132.6 million as of December 31, 2018, primarily driven by build-up of raw materials in our PES operating segment due to reduced volume in the second quarter. |
• | Borrowings under revolving credit facility decreased 14.4% to $195.5 million as of June 30, 2019, from $228.5 million as of December 31, 2018, as a result of $33.0 million of principal payments made in the first half of 2019. |
(Dollars in thousands) | Three Months Ended | ||||||
Key Cash Flow Measures: | June 30, 2019 | June 30, 2018 | |||||
Net cash provided by operating activities | $ | 67,501 | $ | 22,818 | |||
Net cash used in investing activities | (21,392 | ) | (19,150 | ) | |||
Net cash used in financing activities | (39,699 | ) | (8,461 | ) |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
List of Exhibits: | |
3.1 | |
3.2 | |
10.1 | |
10.2 | |
10.3 | |
31.1 | |
31.2 | |
32 | |
101 | The following materials from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2019 formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and June 30, 2018, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2019 and June 30, 2018, (iii) Condensed Consolidated Statements of Financial Position at June 30, 2019 and December 31, 2018, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and June 30, 2018, (v) Notes to Condensed Consolidated Financial Statements and (vi) Cover Page. |
ROGERS CORPORATION (Registrant) |
/s/ Michael M. Ludwig | ||
Michael M. Ludwig | ||
Senior Vice President, Chief Financial Officer and Treasurer Principal Financial Officer | ||
Dated: July 31, 2019 |
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: July 31, 2019 |
/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: July 31, 2019 |
/s/ Michael M. Ludwig |
Michael M. Ludwig |
Senior Vice President, Chief Financial Officer and Treasurer Principal Financial Officer |
/s/ Bruce D. Hoechner |
Bruce D. Hoechner |
President and Chief Executive Officer Principal Executive Officer |
July 31, 2019 |
/s/ Michael M. Ludwig |
Michael M. Ludwig |
Senior Vice President, Chief Financial Officer and Treasurer Principal Financial Officer |
July 31, 2019 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Statement [Abstract] | ||||
Net sales | $ 242,852 | $ 214,675 | $ 482,650 | $ 429,286 |
Cost of sales | 157,024 | 138,003 | 311,428 | 276,007 |
Gross margin | 85,828 | 76,672 | 171,222 | 153,279 |
Selling, general and administrative expenses | 43,649 | 42,540 | 86,901 | 83,137 |
Research and development expenses | 7,843 | 8,750 | 15,452 | 16,884 |
Restructuring and impairment charges | 1,083 | 541 | 1,905 | 963 |
Other operating (income) expense, net | 40 | (383) | 951 | (3,974) |
Operating income | 33,213 | 25,224 | 66,013 | 56,269 |
Equity income in unconsolidated joint ventures | 1,742 | 1,804 | 2,579 | 2,811 |
Other income (expense), net | (1,401) | (34) | 3 | 32 |
Interest expense, net | (2,038) | (1,292) | (3,976) | (2,503) |
Income before income tax expense | 31,516 | 25,702 | 64,619 | 56,609 |
Income tax expense | 7,223 | 8,373 | 11,927 | 13,144 |
Net income | $ 24,293 | $ 17,329 | $ 52,692 | $ 43,465 |
Basic earnings per share (in dollars per share) | $ 1.31 | $ 0.94 | $ 2.84 | $ 2.37 |
Diluted earnings per share (in dollars per share) | $ 1.30 | $ 0.93 | $ 2.82 | $ 2.33 |
Shares used in computing: | ||||
Basic earnings per share (in shares) | 18,568 | 18,389 | 18,562 | 18,338 |
Diluted earnings per share (in shares) | 18,730 | 18,660 | 18,711 | 18,635 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,293 | $ 17,329 | $ 52,692 | $ 43,465 |
Foreign currency translation adjustment | 2,182 | (15,294) | (2,075) | (8,293) |
Derivative instrument designated as cash flow hedge: | ||||
Change in unrealized gain (loss) before reclassifications, net of tax (Note 4) | (810) | 349 | (1,204) | 1,153 |
Unrealized (gain) loss reclassified into earnings, net of tax (Note 4) | (62) | (29) | (156) | (56) |
Pension and other postretirement benefits: | ||||
Amortization of loss, net of tax (Note 4) | 157 | 44 | 313 | 87 |
Other comprehensive income (loss) | 1,467 | (14,930) | (3,122) | (7,109) |
Comprehensive income | $ 25,760 | $ 2,399 | $ 49,570 | $ 36,356 |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,215 | $ 1,354 |
Property, plant and equipment, accumulated depreciation | $ 331,553 | $ 317,414 |
Capital Stock, par value (in dollars per share) | $ 1 | $ 1 |
Capital Stock, authorized shares (shares) | 50,000,000 | 50,000,000 |
Capital Stock, shares issued (shares) | 18,559,000 | 18,395,000 |
Capital Stock, shares outstanding (shares) | 18,559,000 | 18,395,000 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – 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. Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 2 – 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:
For further discussion on our derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”
|
Hedging Transactions and Derivative Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedging Transactions and Derivative Financial Instruments | Note 3 – 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 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 June 30, 2019 and 2018, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge, and the hedge was highly effective. Foreign Currency During the three months ended June 30, 2019, we entered into Chinese Renminbi, Korean Won and Euro 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 in the period in which the adjustment occurred. As of June 30, 2019, the notional values of the remaining foreign currency forward contracts were:
Commodity As of June 30, 2019, we had 26 outstanding contracts to hedge exposure related to the purchase of copper in our Power Electronics Solutions (PES) and Advanced Connectivity Solutions (ACS) operating segments. These contracts are held with financial institutions and are intended to offset rising copper prices and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other income (expense), net” in our condensed consolidated statements of operations in the period in which the adjustment occurred. As of June 30, 2019, the volume of our copper contracts outstanding was as follows:
Interest Rates In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction has been designated as a cash flow hedge and qualifies for hedge accounting treatment. For additional information regarding our revolving credit facility, refer to “Note 10 – Debt.” Effects on Financial Statements
(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item in the condensed consolidated statements of financial position.
|
Accumulated Other Comprehensive Loss |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Note 4 – Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component for the six months ended June 30, 2019 and 2018 were as follows:
(1) Net of tax benefits of $9,893 and $9,984 as of June 30, 2019 and December 31, 2018, respectively. Net of tax benefits of $9,536 and $9,563 as of June 30, 2018 and December 31, 2017, respectively. (2) Net of tax benefits (expenses) of $278 and ($106) as of June 30, 2019 and December 31, 2018, respectively. Net of tax benefits (expenses) of ($316) and ($15) as of June 30, 2018 and December 31, 2017, respectively.
|
Acquisitions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Note 5 – Acquisitions Griswold LLC On July 6, 2018, we acquired 100% of the membership interests in Griswold LLC (Griswold) for an aggregate purchase price of $78.0 million, net of cash acquired. Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations of Rogers and Griswold as if the Griswold acquisition had occurred on January 1, 2017. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the Griswold acquisition been completed as of January 1, 2017, and should not be taken as indicative of our future consolidated results of operations.
|
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Note 6 – Inventories Inventories are valued at the lower of cost or net realizable value. Inventories consisted of the following:
|
Goodwill and Other Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Note 7 – Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill from December 31, 2018 to June 30, 2019 by operating segment, were as follows:
Other Intangible Assets The gross carrying amount, accumulated amortization and net carrying amount of other intangible assets as of June 30, 2019 and December 31, 2018 by classification type, were as follows:
In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations. Amortization expense for the three and six months ended June 30, 2019 was approximately $4.4 million and $8.9 million, respectively. Amortization expense for the three and six months ended June 30, 2018 was approximately $3.8 million and $7.7 million, respectively. The estimated future amortization expense is $8.9 million for the remainder of 2019 and $14.6 million, $13.8 million, $13.3 million and $12.7 million for 2020, 2021, 2022 and 2023, respectively. The weighted average amortization period as of June 30, 2019, by definite-lived other intangible asset class, is presented in the table below:
|
Earnings Per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Note 8 – Earnings Per Share Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. The following table sets forth the computation of basic and diluted earnings per share for the periods indicated:
Dilutive shares are calculated using the treasury stock method and primarily include unvested restricted stock units. Anti-dilutive shares are excluded from the calculation of diluted shares and diluted earnings per share. For the three months ended June 30, 2019 and 2018, 6,256 shares and 27,145 shares were excluded, respectively.
|
Capital Stock and Equity Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Equity Compensation | Note 9 – Capital Stock and Equity Compensation Equity Compensation Performance-Based Restricted Stock Units As of June 30, 2019, we had performance-based restricted stock units from 2019, 2018 and 2017 outstanding. These awards generally cliff vest at the end of a three year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures. The outstanding awards have one measurement criterion: the three year total shareholder return (TSR) on our capital stock as compared to that of a specified group of peer companies. The TSR measurement criterion of the awards is considered a market condition. As such, the fair value of this measurement criterion was determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur. Below are the assumptions used in the Monte Carlo calculation on the respective grant dates for awards granted in 2019 and 2018:
Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility. Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model. Risk-free interest rate – We use an implied “spot rate” yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate. Expected dividend yield – We do not currently pay dividends on our capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model. The following table summarizes the change in number of performance-based restricted stock units outstanding for the six months ended June 30, 2019:
We recognized $1.1 million and $2.0 million of compensation expense for performance-based restricted stock units during the three and six months ended June 30, 2019, respectively. We recognized $0.8 million and $1.8 million of compensation expense for performance-based restricted stock units during the three and six months ended June 30, 2018, respectively. Time-Based Restricted Stock Units As of June 30, 2019, we had time-based restricted stock unit awards from 2019, 2018, 2017 and 2016 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur. A summary of activity of the outstanding time-based restricted stock units for the six months ended June 30, 2019 is presented below:
We recognized $1.4 million and $2.9 million of compensation expense for time-based restricted stock units during the three and six months ended June 30, 2019, respectively. We recognized $1.3 million and $2.9 million of compensation expense for time-based restricted stock units during the three and six months ended June 30, 2018, respectively. Deferred Stock Units We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date. The following table summarizes the change in number of deferred stock units outstanding during the six months ended June 30, 2019:
We recognized $1.1 million of compensation expense related to deferred stock units for the three and six months ended June 30, 2019, and $0.9 million of compensation expense for the three and six months ended June 30, 2018. Stock Options Stock options have been granted under various equity compensation plans. The maximum contractual term for all options is normally 10 years. All outstanding options are fully vested and exercisable. We have not granted any stock options since the first quarter of 2012. During the six months ended June 30, 2019, 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 $1.1 million, and the total amount of cash received from the exercise of these options was $0.3 million. A summary of the activity under our stock option plans for the six months ended June 30, 2019 is presented below:
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 an immaterial amount of equity compensation expense associated with the ESPP for each of the three- and six-month periods ended June 30, 2019 and 2018.
|
Debt |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 10 – Debt In 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). In 2018, we borrowed $82.5 million under our revolving credit facility to fund the acquisition of Griswold and an additional $20.0 million to fund the Rogers Corporation Defined Benefit Pension Plan (Merged Plan) as part of the proposed plan termination process. Borrowings under the Third Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest at a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate is the greater of the prime rate; federal funds effective rate (or the overnight bank funding rate, if greater) plus 50 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. Based on our leverage ratio as of June 30, 2019, the spread was 150.0 basis points. We incurred interest expense on our outstanding debt of $2.1 million, and $1.1 million during the three months ended June 30, 2019 and 2018, respectively, and $4.2 million and $2.0 million during the six months ended June 30, 2019 and 2018, respectively. 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. We incurred immaterial unused commitment fees in each of the three- and six-month periods ended June 30, 2019 and 2018. 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 June 30, 2019 we had $195.5 million in outstanding borrowings under our revolving credit facility. However, we made discretionary principal payments totaling $33.0 million on our revolving credit facility during the six months ended June 30, 2019. As of June 30, 2019, we had $1.4 million of outstanding line of credit issuance costs that will be amortized over the life of the Third Amended Credit Agreement. We recognized an immaterial amount of amortization expense for each of the three- and six-month periods ended June 30, 2019 and 2018, 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. For further information regarding the interest rate swap, refer to “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 June 30, 2019.
|
Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Note 11 - Leases We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.8 million and $5.0 million as of June 30, 2019 and December 31, 2018, respectively. The finance lease right-of-use asset balance for this facility was $6.5 million and $6.7 million as of June 30, 2019 and December 31, 2018, respectively. All other finance lease obligations and finance lease right-of-use assets were cumulatively immaterial as of June 30, 2019 and December 31, 2018. Accumulated amortization related to our finance lease right-of-use assets was $3.7 million and $3.5 million as of June 30, 2019 and December 31, 2018, respectively. Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2019 and 2018. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2019 and 2018. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three-and six-month periods ended June 30, 2019 and 2018. We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term. The following table includes our expenses and payments for operating leases for the three and six months ended June 30, 2019:
As of June 30, 2019 and December 31, 2018, our assets and liabilities balances related to finance and operating leases were as follows:
Net Future Minimum Lease Payments The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2019:
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
Transition We adopted Accounting Standards Codification (ASC) 842, Leases, in the first quarter of 2019 using the optional transition method, which applies the new lease requirements through a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restatement of comparative periods. The guidance was applied to all leases that were not completed at the date of implementation. The adoption primarily affected our condensed consolidated statements of financial position through the recognition of $6.2 million of operating lease right-of-use assets and $6.2 million of operating lease obligations, as well as an immaterial impact to retained earnings, as of January 1, 2019. We recognized an additional $0.1 million of operating lease right- of-use assets and $0.1 million operating lease obligations during the three months ended June 30, 2019. We recognized an additional $0.8 million of operating lease right-of-use assets and $0.8 million operating lease obligations during the six months ended June 30, 2019. The total operating lease right-of use assets and operating lease obligations recognized was $7.0 million and $7.0 million, respectively. Practical Expedients We have elected to recognize lease payments in the condensed consolidated statements of operations on a straight-line basis over the term of the lease for short-term leases. We also elected the package of practical expedients that allows us to carry forward the historical lease classification and accounting for indirect costs for any existing leases.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Note 11 - Leases We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.8 million and $5.0 million as of June 30, 2019 and December 31, 2018, respectively. The finance lease right-of-use asset balance for this facility was $6.5 million and $6.7 million as of June 30, 2019 and December 31, 2018, respectively. All other finance lease obligations and finance lease right-of-use assets were cumulatively immaterial as of June 30, 2019 and December 31, 2018. Accumulated amortization related to our finance lease right-of-use assets was $3.7 million and $3.5 million as of June 30, 2019 and December 31, 2018, respectively. Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2019 and 2018. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2019 and 2018. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three-and six-month periods ended June 30, 2019 and 2018. We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term. The following table includes our expenses and payments for operating leases for the three and six months ended June 30, 2019:
As of June 30, 2019 and December 31, 2018, our assets and liabilities balances related to finance and operating leases were as follows:
Net Future Minimum Lease Payments The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2019:
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
Transition We adopted Accounting Standards Codification (ASC) 842, Leases, in the first quarter of 2019 using the optional transition method, which applies the new lease requirements through a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restatement of comparative periods. The guidance was applied to all leases that were not completed at the date of implementation. The adoption primarily affected our condensed consolidated statements of financial position through the recognition of $6.2 million of operating lease right-of-use assets and $6.2 million of operating lease obligations, as well as an immaterial impact to retained earnings, as of January 1, 2019. We recognized an additional $0.1 million of operating lease right- of-use assets and $0.1 million operating lease obligations during the three months ended June 30, 2019. We recognized an additional $0.8 million of operating lease right-of-use assets and $0.8 million operating lease obligations during the six months ended June 30, 2019. The total operating lease right-of use assets and operating lease obligations recognized was $7.0 million and $7.0 million, respectively. Practical Expedients We have elected to recognize lease payments in the condensed consolidated statements of operations on a straight-line basis over the term of the lease for short-term leases. We also elected the package of practical expedients that allows us to carry forward the historical lease classification and accounting for indirect costs for any existing leases.
|
Pension Benefits and Other Postretirement Benefit Plans |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefit and Other Postretirement Benefit Plans | Note 12 – Pension Benefits and Other Postretirement Benefit Plans As of June 30, 2019, we had two qualified noncontributory defined benefit pension plans: 1) the Rogers Corporation Employees’ Pension Plan (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 Merged 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 31st for each respective plan year. We are required, as an employer, to: (a) recognize in our consolidated statements of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and our obligations that determine our funded status as of the end of the year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur and report these changes in accumulated other comprehensive loss. In addition, actuarial gains and losses that are not immediately recognized as net periodic pension cost are recognized as a component of accumulated other comprehensive loss and amortized into net periodic pension cost in future periods. Pension Plan Proposed Termination The Company currently intends to terminate the Merged Plan and has received a determination letter from the Internal Revenue Service (IRS). On June 10, 2019, the Company amended the Plan to (a) terminate the Plan (subject to discretionary approval by the Company’s Chief Executive Officer) and (b) add a lump sum distribution option in connection with the termination of the Plan, if approved. The Company plans to provide participants an option to elect either a lump sum distribution or an annuity. One or more group annuity contracts with one or more insurance companies will be purchased to settle our obligations for those participants who do not receive a lump sum. The Merged Plan is fully-funded on a GAAP basis, however, in order to terminate the plan in accordance with IRS and Pension Benefit Guaranty Corporation requirements, the Company will be required to contribute additional assets, if necessary, to settle all of the Merged Plan’s obligations. The amount necessary to do so is not yet known. In addition, the Company expects to record a pension settlement charge at plan termination. This settlement charge will include, as a non-cash charge, the immediate recognition into expense of the unrecognized losses within accumulated other comprehensive loss on the statement of financial position as of the plan termination date. The Company does not have a current estimate of these future charges, however, the pre-tax accumulated other comprehensive loss related to the Merged Plan was approximately $47 million as of June 30, 2019. We currently estimate that if the plan termination is approved by the Chief Executive Officer, it will be completed during the second half of 2019, when lump sum distributions are expected to occur and one or more annuity contracts are expected to be purchased. At this time, there are no plans to terminate the Union Plan. 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 for the three- or six-month periods ended June 30, 2019 and 2018, and we are not required to make additional contributions to these plans for the remainder of 2019. No voluntary contributions were made to our qualified defined benefit pension plans for each of the three- and six-month periods ended June 30, 2019 and 2018. As there is no funding requirement for the Nonqualified Plans or the Retiree Health and Life Insurance benefit plans, we fund the amount of benefit payments made during the year, which were immaterial for each of the three- and six-month periods ended June 30, 2019 and 2018.
|
Commitments and Contingencies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Note 13 – 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. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We incurred an immaterial amount of aggregate remediation costs through June 30, 2019, and the accrual for future remediation efforts is $1.6 million. Asbestos Overview We, like many other industrial companies, have been named as a defendant in a number of lawsuits filed in courts across the country by persons alleging personal injury from exposure to products containing asbestos. We have never mined, milled, manufactured or marketed asbestos; rather, we made and provided to industrial users a limited number of products that contained encapsulated asbestos, but we stopped manufacturing these products in the late 1980s. Most of the claims filed against us involve numerous defendants, sometimes as many as several hundred. The following table summarizes the change in number of asbestos claims outstanding during the six months ended June 30, 2019:
(1)For the six months ended June 30, 2019, 98 claims were dismissed and 8 claims were settled. Settlements totaled approximately $0.7 million for the six months ended June 30, 2019. Impact on Financial Statements We recognize a liability for asbestos-related contingencies that are probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos-related matters, we record asbestos-related insurance receivables that are deemed probable. The liability projection period covers all current and future claims through 2058, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy. To date, the defense and settlement costs of our asbestos-related product liability litigation have been substantially covered by insurance. Although we have exhausted coverage under some of our insurance policies, we believe that we have applicable primary, excess and/or umbrella coverage for claims arising with respect to most of the years during which we manufactured and marketed asbestos-containing products. In addition, we have entered into a cost sharing agreement with most of our primary, excess and umbrella insurance carriers to facilitate the ongoing administration and payment of claims covered by the carriers. The cost sharing agreement may be terminated by any party, but will continue until a party elects to terminate it. As of the filing date for this report, the agreement has not been terminated, and no carrier had informed us it intended to terminate the agreement. We expect to continue to exhaust individual primary, excess and umbrella coverages over time, and there is no assurance that such exhaustion will not accelerate due to additional claims, damages and settlements or that coverage will be available as expected. We are responsible for uninsured defense, indemnity and settlement costs, and we incurred an immaterial amount of expenses for each of the three- and six-month periods ended June 30, 2019 and 2018, respectively, related primarily to such costs. The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. As of June 30, 2019 and December 31, 2018, our projected asbestos-related claims and insurance receivables were as follows:
General In addition to the above issues, the nature and scope of our business brings us in regular contact with the general public and a variety of businesses and government agencies. Such activities inherently subject us to the possibility of litigation, including environmental and product liability matters that are defended and handled in the ordinary course of business. We have established accruals for matters for which management considers a loss to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position or cash flows.
|
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 – Income Taxes Our effective income tax rate was 22.9% and 32.6% for the three months ended June 30, 2019 and 2018, respectively. The decrease from the second quarter of 2018 was primarily due to the beneficial impact of the international tax provisions from U.S. tax reform as a result of administrative guidance issued during the second half of 2018, changes in valuation allowance related to R&D credits and a lower tax impact on unremitted foreign earnings and profits. Our effective income tax rate was 18.5% and 23.2% for the six months ended June 30, 2019 and 2018, respectively. The decrease from the first half of 2018 was primarily due to the beneficial impact of the international tax provisions from U.S. tax reform as a result of administrative guidance issued during the second half of 2018 and a lower tax impact on unremitted foreign earnings and profits, partially offset by a decrease in current year release of reserves for uncertain tax positions. The total amount of unrecognized tax benefits as of June 30, 2019 was $9.8 million, of which $9.6 million would affect our effective tax rate if recognized. It is reasonably possible that approximately $1.4 million of our unrecognized tax benefits as of June 30, 2019 will reverse within the next 12 months. We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of June 30, 2019, we had $0.6 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 2014.
|
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Note 15 – Segment Information Our reporting structure is comprised of the following strategic operating segments: ACS, EMS and PES. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally. On January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. For additional information regarding the impacts of this accounting guidance, refer to “Note 16 – Revenue from Contracts with Customers.” We sell products to fabricators and distributors who then sell directly into various end markets. End markets within our ACS operating segment include wireless infrastructure, aerospace and defense, automotive, connected devices, wired infrastructure and consumer electronics. End markets within our EMS operating segment include portable electronics, mass transit, automotive, consumer and general industrial. End markets within our PES operating segment include e-mobility, industrial, renewable energy, mass transit, and micro channel coolers. End markets in our Other operating segment include automotive and industrial. The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:
Information relating to our segment operations by geographic area for the three months ended June 30, 2019 and 2018 was as follows:
Information relating to our segment operations by geographic area for the six months ended June 30, 2019 and 2018 was as follows:
(1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.
|
Revenue from Contracts with Customers |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer | Note 16 – Revenue from Contracts with Customers 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 June 30, 2019 or December 31, 2018. The following table presents contract assets by operating segment as of June 30, 2019 and December 31, 2018:
No impairment losses were recognized for each of the three- and six-month periods ended June 30, 2019 and 2018 on any receivables or contract assets arising from our contracts with customers.
|
Restructuring and Impairment Charges |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructuring and Impairment Charges | Note 17 – Restructuring and Impairment Charges In 2018, we made the decision to consolidate our Santa Fe Springs, California operations into the Company’s facilities in Carol Stream, Illinois and Bear, Delaware. We recorded $0.1 million and $0.9 million of expense for the three and six months ended June 30, 2019, respectively, related to the facility consolidation. We recorded $0.5 million of expense related to this project in the three and six months ended June 30, 2018, respectively. The fair value of the total severance benefits paid in connection with the facility consolidation was $0.5 million. The total severance costs were expensed ratably over the required service period for the affected employees. All severance expenses were recorded as of December 31, 2018, and the final severance payments were made in the first quarter of 2019. The following table presents severance activity related to the facility consolidation for the six months ended June 30, 2019:
We recognized $0.9 million and $1.0 million in impairment charges on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition for the three and six months ended June 30, 2019, respectively.
|
Supplemental Financial Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information | Note 18 – 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 recognized lease income of approximately $0.3 million and $0.9 million for the three and six months ended June 30, 2019, respectively, as well as approximately $0.4 million and $1.6 million of related depreciation on leased assets for the three and six months ended June 30, 2019, respectively, in connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018.
|
Recent Accounting Standards |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | Note 19 – Recent Accounting Standards Recently Issued Standards In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit plans or other postretirement plans. This ASU is effective for our fiscal year ending December 31, 2020, with early adoption permitted. ASU 2018-14 is required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. This ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). This ASU is effective for our fiscal year ending December 31, 2020 and for the interim periods within that year. Early adoption is permitted. ASU 2018-13 is generally required to be applied retrospectively to all periods presented upon their effective date with the exception of certain amendments, that should be applied prospectively to the most recent interim or annual period presented in the year of adoption. The Company is currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Recently Adopted Standards Reflected in Our 2019 Financial Statements In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. The amendments in this update were effective for the Company on January 1, 2019 and the Company will apply the amendments in this update to qualifying new or redesignated hedging relationships. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which aligns the requirements for capitalizing costs incurred in the implementation of a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal use software. The Company adopted this ASU on January 1, 2019 on a prospective basis and it did not have a material impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU 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 U.S. Tax Reform from accumulated other comprehensive loss to retained earnings but it does not require this reclassification. The Company adopted this ASU on January 1, 2019 and elected to not reclassify the stranded tax effects resulting from U.S. Tax Reform. As a result of that election, the adoption of ASU 2018-02 did not have an impact on the Company’s consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 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 2016-02 supersedes the existing guidance on accounting for leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allowed for an optional transition method for the adoption of Topic 842. The two permitted transition methods are now the modified retrospective approach, which applies the new lease requirements at the beginning of the earliest period presented, and the optional transition method, which applies the new lease requirements through a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard on January 1, 2019 using the optional transition method. The Company elected to use the practical expedients that allow us to carry forward the historical lease classification. For additional information regarding the impact of the adoption of this standard, refer to “Note 11 - Leases.”
|
Share Repurchases |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Equity [Abstract] | |
Share Repurchases | Note 20 – Share Repurchases In 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. No share repurchases were made during the three and six months ended June 30, 2019. During the three and six months ended June 30, 2018, we repurchased 23,138 shares of our capital stock for $3.0 million. As of June 30, 2019, $49.0 million remained of our $100.0 million share repurchase program.
|
Recent Accounting Standards (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Standards and Recently Adopted Standards Reflected in Our 2019 Financial Statements | Recently Issued Standards In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit plans or other postretirement plans. This ASU is effective for our fiscal year ending December 31, 2020, with early adoption permitted. ASU 2018-14 is required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. This ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). This ASU is effective for our fiscal year ending December 31, 2020 and for the interim periods within that year. Early adoption is permitted. ASU 2018-13 is generally required to be applied retrospectively to all periods presented upon their effective date with the exception of certain amendments, that should be applied prospectively to the most recent interim or annual period presented in the year of adoption. The Company is currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Recently Adopted Standards Reflected in Our 2019 Financial Statements In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. The amendments in this update were effective for the Company on January 1, 2019 and the Company will apply the amendments in this update to qualifying new or redesignated hedging relationships. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which aligns the requirements for capitalizing costs incurred in the implementation of a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal use software. The Company adopted this ASU on January 1, 2019 on a prospective basis and it did not have a material impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU 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 U.S. Tax Reform from accumulated other comprehensive loss to retained earnings but it does not require this reclassification. The Company adopted this ASU on January 1, 2019 and elected to not reclassify the stranded tax effects resulting from U.S. Tax Reform. As a result of that election, the adoption of ASU 2018-02 did not have an impact on the Company’s consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 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 2016-02 supersedes the existing guidance on accounting for leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allowed for an optional transition method for the adoption of Topic 842. The two permitted transition methods are now the modified retrospective approach, which applies the new lease requirements at the beginning of the earliest period presented, and the optional transition method, which applies the new lease requirements through a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard on January 1, 2019 using the optional transition method. The Company elected to use the practical expedients that allow us to carry forward the historical lease classification. For additional information regarding the impact of the adoption of this standard, refer to “Note 11 - Leases.”
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Hedging Transactions and Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2019, the volume of our copper contracts outstanding was as follows:
As of June 30, 2019, the notional values of the remaining foreign currency forward contracts were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction has been designated as a cash flow hedge and qualifies for hedge accounting treatment. For additional information regarding our revolving credit facility, refer to “Note 10 – Debt.” Effects on Financial Statements
(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item in the condensed consolidated statements of financial position.
|
Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 six months ended June 30, 2019 and 2018 were as follows:
(1) Net of tax benefits of $9,893 and $9,984 as of June 30, 2019 and December 31, 2018, respectively. Net of tax benefits of $9,536 and $9,563 as of June 30, 2018 and December 31, 2017, respectively. (2) Net of tax benefits (expenses) of $278 and ($106) as of June 30, 2019 and December 31, 2018, respectively. Net of tax benefits (expenses) of ($316) and ($15) as of June 30, 2018 and December 31, 2017, respectively.
|
Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, pro forma information | The following unaudited pro forma financial information presents the combined results of operations of Rogers and Griswold as if the Griswold acquisition had occurred on January 1, 2017. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the Griswold acquisition been completed as of January 1, 2017, and should not be taken as indicative of our future consolidated results of operations.
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
|
Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill from December 31, 2018 to June 30, 2019 by operating segment, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | The gross carrying amount, accumulated amortization and net carrying amount of other intangible assets as of June 30, 2019 and December 31, 2018 by classification type, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Amortization Period, by Intangible Asset Class | The weighted average amortization period as of June 30, 2019, by definite-lived other intangible asset class, is presented in the table below:
|
Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Capital Stock and Equity Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used in Calculation of Fair Value | Below are the assumptions used in the Monte Carlo calculation on the respective grant dates for awards granted in 2019 and 2018:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity Under Stock Option Plans | A summary of the activity under our stock option plans for the six months ended June 30, 2019 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance-Based Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activities | The following table summarizes the change in number of performance-based restricted stock units outstanding for the six months ended June 30, 2019:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time-Based Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activities | A summary of activity of the outstanding time-based restricted stock units for the six months ended June 30, 2019 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activities | The following table summarizes the change in number of deferred stock units outstanding during the six months ended June 30, 2019:
|
Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table includes our expenses and payments for operating leases for the three and six months ended June 30, 2019:
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Balance Related to Finance and Operating Leases | As of June 30, 2019 and December 31, 2018, our assets and liabilities balances related to finance and operating leases were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Lease, Liability, Maturity | The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2019:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease, Liability, Maturity | The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2019:
|
Pension Benefits and Other Postretirement Benefit Plans (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | The components of net periodic (benefit) cost for the periods indicated were:
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table summarizes the change in number of asbestos claims outstanding during the six months ended June 30, 2019:
(1)For the six months ended June 30, 2019, 98 claims were dismissed and 8 claims were settled. Settlements totaled approximately $0.7 million for the six months ended June 30, 2019.
|
||||||||||||||||||||||||||||||||||||||||
Schedule of Asbestos-Related Claims and Insurance Receivables | As of June 30, 2019 and December 31, 2018, our projected asbestos-related claims and insurance receivables were as follows:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segment Information | The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:
Information relating to our segment operations by geographic area for the three months ended June 30, 2019 and 2018 was as follows:
Information relating to our segment operations by geographic area for the six months ended June 30, 2019 and 2018 was as follows:
(1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.
|
Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets by Operating Segment | The following table presents contract assets by operating segment as of June 30, 2019 and December 31, 2018:
|
Restructuring and Impairment Charges (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table presents severance activity related to the facility consolidation for the six months ended June 30, 2019:
We recognized $0.9 million and $1.0 million in impairment charges on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition for the three and six months ended June 30, 2019, respectively.
|
Supplemental Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Income Statement Supplemental Disclosures | The components of “Other operating (income) expense, net” are as follows:
|
Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details) |
Jun. 30, 2019
Contract
|
Dec. 31, 2017
USD ($)
|
Mar. 31, 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 | 26 | ||
Third Amended Credit Agreement | Revolving Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum borrowing capacity | $ 450,000,000.0 | $ 450,000,000.0 | |
Interest rate swap | Third Amended Credit Agreement | Revolving Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged balance on debt instrument | $ 75,000,000.0 |
Acquisitions - Additional Information (Details) - Griswold $ in Millions |
Jul. 06, 2018
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Business acquisition, percentage of voting interests acquired | 100.00% |
Consideration transferred | $ 78.0 |
Acquisitions - Business Acquisition Pro Forma Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
|
Business Combinations [Abstract] | ||
Net sales | $ 222,350 | $ 444,073 |
Net income | $ 16,554 | $ 42,436 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 63,931 | $ 59,321 |
Work-in-process | 31,646 | 30,086 |
Finished goods | 39,490 | 43,230 |
Total inventories | $ 135,067 | $ 132,637 |
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 264,885 |
Foreign currency translation adjustment | (1,081) |
Goodwill, ending balance | 263,804 |
Advanced Connectivity Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 51,693 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | 51,693 |
Elastomeric Material Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 142,589 |
Foreign currency translation adjustment | (538) |
Goodwill, ending balance | 142,051 |
Power Electronics Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 68,379 |
Foreign currency translation adjustment | (543) |
Goodwill, ending balance | 67,836 |
Other | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 2,224 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | $ 2,224 |
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 4.4 | $ 3.8 | $ 8.9 | $ 7.7 |
Annual Future Amortization Expense | ||||
Anticipated future amortization expense for the remainder of 2019 | 8.9 | 8.9 | ||
Anticipated future amortization expense for 2020 | 14.6 | 14.6 | ||
Anticipated future amortization expense for 2021 | 13.8 | 13.8 | ||
Anticipated future amortization expense for 2022 | 13.3 | 13.3 | ||
anticipated future amortization expense for 2023 | $ 12.7 | $ 12.7 |
Goodwill and Other Intangible Assets - Weighted Average Amortization Period by Intangible Asset Class (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 6 years 6 months |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 7 years 4 months 24 days |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 4 years 2 months 12 days |
Trademarks and trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 4 years 10 months 24 days |
Covenants not to compete | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 1 year 9 months 18 days |
Earnings Per Share (Computation of Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Numerator: | ||||
Net income | $ 24,293 | $ 17,329 | $ 52,692 | $ 43,465 |
Denominator: | ||||
Weighted-average shares outstanding - basic (in shares) | 18,568,000 | 18,389,000 | 18,562,000 | 18,338,000 |
Effect of dilutive shares (in shares) | 162,000 | 271,000 | 149,000 | 297,000 |
Weighted-average shares outstanding - dilutive (in shares) | 18,730,000 | 18,660,000 | 18,711,000 | 18,635,000 |
Basic earnings per share (in dollars per share) | $ 1.31 | $ 0.94 | $ 2.84 | $ 2.37 |
Diluted earnings per share (in dollars per share) | $ 1.30 | $ 0.93 | $ 2.82 | $ 2.33 |
Anti-dilutive shares excluded (in shares) | 6,256 | 27,145 |
Capital Stock and Equity Compensation (Monte Carlo Calculation Assumptions) (Details) - Performance-Based Restricted Stock Units |
Jun. 03, 2019 |
Feb. 07, 2019 |
Sep. 17, 2018 |
Feb. 08, 2018 |
---|---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility (percent) | 39.70% | 36.70% | 36.60% | 34.80% |
Expected term (in years) | 2 years 7 months 6 days | 2 years 10 months 24 days | 3 years | 3 years |
Risk-free interest rate (percent) | 1.78% | 2.43% | 2.85% | 2.28% |
Capital Stock and Equity Compensation (Performance Based Restricted Stock Awards) (Details) - Performance-Based Restricted Stock Units |
6 Months Ended |
---|---|
Jun. 30, 2019
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) | 142,434 |
Awards granted (shares) | 111,087 |
Stock issued (shares) | (131,650) |
Awards forfeited (shares) | (11,549) |
Non-vested awards outstanding ending balance (shares) | 110,322 |
Capital Stock and Equity Compensation (Time Based Restricted Stock Awards) (Details) - Time-Based Restricted Stock Units |
6 Months Ended |
---|---|
Jun. 30, 2019
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) | 117,476 |
Awards granted (shares) | 59,561 |
Stock issued (shares) | (64,536) |
Awards forfeited (shares) | (7,596) |
Non-vested awards outstanding ending balance (shares) | 104,905 |
Capital Stock and Equity Compensation (Deferred Stock Units) (Details) - Deferred Stock Units |
6 Months Ended |
---|---|
Jun. 30, 2019
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) | 8,400 |
Awards granted (shares) | 5,950 |
Stock issued (shares) | (7,200) |
Non-vested awards outstanding ending balance (shares) | 7,150 |
Leases (Lease Expenses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Operating leases expense | $ 775 | $ 1,493 |
Short-term leases expense | 43 | 82 |
Payments on operating lease obligations | $ 760 | $ 1,524 |
Leases (Assets and Liabilities Balance Related to Finance and Operating Leases) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Leases [Abstract] | ||
Finance lease right-of-use assets | $ 6,529 | $ 6,750 |
Operating lease right-of-use assets | 6,285 | 0 |
Finance lease obligations, current portion | 420 | 420 |
Finance lease obligations, non-current portion | 4,394 | 4,629 |
Total finance lease obligations | 4,814 | 5,049 |
Operating lease obligations, current portion | 2,594 | 0 |
Operating lease obligations, non-current portion | 3,710 | 0 |
Total operating lease obligations | $ 6,304 | $ 0 |
Leases (Lease Payments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Finance Leases | ||
2019 | $ 278 | |
2020 | 521 | |
2021 | 4,238 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total Lease Payments | 5,037 | |
Less: Interest | (223) | |
Present Value of Net Future Minimum Lease Payments | 4,814 | $ 5,049 |
Operating Leases Signed | ||
2019 | 1,478 | |
2020 | 2,713 | |
2021 | 1,589 | |
2022 | 822 | |
2023 | 229 | |
Thereafter | 30 | |
Total Lease Payments | 6,861 | |
Less: Interest | (557) | |
Present Value of Net Future Minimum Lease Payments | 6,304 | |
Operating Less: Leases Not Yet Commenced | ||
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total Lease Payments | 0 | |
Less: Interest | 0 | |
Present Value of Net Future Minimum Lease Payments | 0 | |
Operating Leases | ||
2019 | 1,478 | |
2020 | 2,713 | |
2021 | 1,589 | |
2022 | 822 | |
2023 | 229 | |
Thereafter | 30 | |
Total Lease Payments | 6,861 | |
Less: Interest | (557) | |
Total operating lease obligations | $ 6,304 | $ 0 |
Leases (Lease Term and Discount Rate) (Details) |
Jun. 30, 2019 |
---|---|
Leases [Abstract] | |
Finance leases, weighted average remaining lease term | 2 years |
Finance leases, weighted average discount rate | 2.55% |
Operating leases, weighted average remaining lease term | 2 years 8 months 12 days |
Operating leases, weighted average discount rate | 6.09% |
Pension Benefits and Other Postretirement Benefit Plans (Additional Information) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
plan
| |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Number of qualified noncontributory defined benefit plans | plan | 2 |
Merged Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension plan, accumulated other comprehensive loss, before tax | $ | $ 47 |
Pension Benefits and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Pension Benefits | ||||
Change in benefit obligation: | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 1,785 | 1,692 | 3,569 | 3,372 |
Expected return of plan assets | (2,192) | (2,164) | (4,384) | (4,333) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net loss | 456 | 457 | 910 | 913 |
Net periodic cost (benefit) | 49 | (15) | 95 | (48) |
Retirement Health and Life Insurance Benefits | ||||
Change in benefit obligation: | ||||
Service cost | 18 | 17 | 36 | 38 |
Interest cost | 15 | 16 | 30 | 31 |
Expected return of plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | (253) | (400) | (506) | (801) |
Amortization of net loss | 0 | 0 | 0 | 0 |
Net periodic cost (benefit) | $ (220) | $ (367) | $ (440) | $ (732) |
Commitments and Contingencies (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Connecticut Voluntary Corrective Action Program | |
Loss Contingencies [Line Items] | |
Estimated total cleanup costs, accrual | $ 1.6 |
Commitments and Contingencies (Schedule of Loss Contingencies) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
claims
claim
| |
Liability for Asbestos and Environmental Claims [Roll Forward] | |
Claims outstanding as of December 31, 2018 | 745 |
New claims filed | 165 |
Pending claims concluded | (106) |
Claims outstanding as of June 30, 2019 | 804 |
Number of claims dismissed | claim | 98 |
Number of claims settled | claim | 8 |
Settlements | $ | $ 0.7 |
Commitments and Contingencies (Schedule of Total Estimated Liability for Asbestos) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Asbestos-related claims | $ 70.8 | $ 70.3 |
Asbestos-related insurance receivables | $ 64.4 | $ 63.8 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 22.90% | 32.60% | 18.50% | 23.20% |
Unrecognized tax benefits | $ 9.8 | $ 9.8 | ||
Unrecognized tax benefits that would decrease the effective tax rate if recognized | 9.6 | 9.6 | ||
Unrecognized tax benefits that could be recognized within 12 months | 1.4 | 1.4 | ||
Unrecognized tax benefits, penalties accrued | $ 0.6 | $ 0.6 |
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total contract assets | $ 25,573 | $ 22,728 |
Advanced Connectivity Solutions | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total contract assets | 0 | 0 |
Elastomeric Material Solutions | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total contract assets | 955 | 943 |
Power Electronics Solutions | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total contract assets | 22,652 | 19,738 |
Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total contract assets | $ 1,966 | $ 2,047 |
Restructuring and Impairment Charges - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 900 | $ 956 | $ 0 | |
Facility Consolidation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 100 | $ 500 | 900 | $ 500 |
Severance and retention expenses | $ 500 |
Restructuring and Impairment Charges - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Restructuring Reserve [Roll Forward] | ||||
Provisions | $ 1,083 | $ 541 | $ 1,905 | $ 963 |
Facility Consolidation | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 523 | |||
Provisions | 0 | |||
Payments | (523) | |||
Ending balance | $ 0 | $ 0 |
Supplemental Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Supplemental Income Statement Elements [Abstract] | |||||
Gain from antitrust litigation settlement | $ 0 | $ 0 | $ (3,600) | $ 0 | $ (3,591) |
Loss (gain) on sale of property, plant and equipment | 3 | (383) | 276 | (383) | |
Lease income | (329) | 0 | (876) | 0 | |
Depreciation on leased assets | 366 | 0 | 1,551 | 0 | |
Total other operating (income) expense, net | $ 40 | $ (383) | $ 951 | $ (3,974) |
Share Repurchases (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2015 |
|
Equity [Abstract] | ||||
Authorized stock repurchase amount | $ 100,000,000.0 | |||
Shares of capital stock repurchased (in shares) | 23,138,000 | 0 | 23,138 | |
Shares repurchased | $ 3,000,000 | $ 3,000,000.0 | ||
Remaining authorized stock repurchase amount | $ 49,000,000.0 |