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Operating Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Operating Segment Information Operating Segment Information
Our reporting structure is comprised of the following strategic operating segments: ACS, Elastomeric Material Solutions (EMS) and PES. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally.
Our ACS operating segment designs, develops, manufactures and sells circuit materials and solutions enabling high-performance and high-reliability connectivity for applications in wireless infrastructure (e.g., power amplifiers, antennas and small cells), automotive (e.g., ADAS, telematics and thermal solutions), aerospace and defense (e.g. antenna systems, communication systems and phased array radar systems), connected devices (e.g., mobile internet devices and thermal solutions) and wired infrastructure (e.g., computing and IP infrastructure) markets.
Our EMS operating segment designs, develops, manufactures and sells engineered material solutions for a wide variety of applications and markets. These include polyurethane and silicone materials used in cushioning, gasketing and sealing, and vibration management applications for general industrial, portable electronics, automotive, electric and hybrid electric vehicles (EV/HEV), mass transit, aerospace and defense, footwear and impact mitigation and printing markets; customized silicones used in flex heater and semiconductor thermal applications for general industrial, portable electronics, automotive, EV/HEV, mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive, EV/HEV and aerospace and defense markets.
Our PES operating segment designs, develops, manufactures and sells ceramic substrate materials, busbars and cooling solutions for a variety of applications in EV/HEV, mass transit, clean energy (i.e. variable frequency drives, renewable energy), general industrial, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik® trade name and our busbars under the ROLINX® trade name.
Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR® trade name and our floats under our NITROPHYL® trade name.
The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:
(Dollars in thousands)Advanced Connectivity SolutionsElastomeric Material SolutionsPower Electronics SolutionsOtherTotal
Three Months Ended June 30, 2020
Net sales - recognized over time$—  $2,667  $45,060  $3,077  $50,804  
Net sales - recognized at a point in time70,940  68,959  160  294  140,353  
Total net sales$70,940  $71,626  $45,220  $3,371  $191,157  
Operating income$15,624  $2,995  $1,446  $1,027  $21,092  
Three Months Ended June 30, 2019
Net sales - recognized over time$—  $2,965  $51,319  $4,313  $58,597  
Net sales - recognized at a point in time92,529  90,929  343  454  184,255  
Total net sales$92,529  $93,894  $51,662  $4,767  $242,852  
Operating income (loss)$18,458  $15,326  $(1,884) $1,313  $33,213  
Six Months Ended June 30, 2020
Net sales - recognized over time$—  $5,494  $91,461  $6,727  $103,682  
Net sales - recognized at a point in time135,493  149,658  480  654  286,285  
Total net sales$135,493  $155,152  $91,941  $7,381  $389,967  
Operating income$21,086  $14,512  $762  $2,207  $38,567  
Six Months Ended June 30, 2019
Net sales - recognized over time$—  $5,971  $110,921  $8,917  $125,809  
Net sales - recognized at a point in time172,999  180,685  555  2,602  356,841  
Total net sales$172,999  $186,656  $111,476  $11,519  $482,650  
Operating income$31,522  $28,757  $2,383  $3,351  $66,013  
Net sales by operating segment and by geographic area were as follows:
(Dollars in thousands)
Net Sales(1)
Region/CountryAdvanced Connectivity SolutionsElastomeric Material SolutionsPower Electronics SolutionsOtherTotal
Three Months Ended June 30, 2020
United States$17,396  $30,073  $5,489  $707  $53,665  
Other Americas681  1,668  77  48  2,474  
Total Americas18,077  31,741  5,566  755  56,139  
China35,580  20,159  9,120  1,024  65,883  
Other APAC8,575  9,835  4,864  453  23,727  
Total APAC44,155  29,994  13,984  1,477  89,610  
Germany2,708  4,799  15,699  44  23,250  
Other EMEA6,000  5,092  9,971  1,095  22,158  
Total EMEA8,708  9,891  25,670  1,139  45,408  
Total net sales$70,940  $71,626  $45,220  $3,371  $191,157  
Three Months Ended June 30, 2019
United States$16,272  $41,370  $8,208  $1,079  $66,929  
Other Americas1,039  2,190  229  206  3,664  
Total Americas17,311  43,560  8,437  1,285  70,593  
China49,333  23,846  11,283  953  85,415  
Other APAC17,026  15,534  6,625  760  39,945  
Total APAC66,359  39,380  17,908  1,713  125,360  
Germany3,951  3,471  14,305  130  21,857  
Other EMEA4,908  7,483  11,012  1,639  25,042  
Total EMEA8,859  10,954  25,317  1,769  46,899  
Total net sales$92,529  $93,894  $51,662  $4,767  $242,852  
(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/CountryAdvanced Connectivity SolutionsElastomeric Material SolutionsPower Electronics SolutionsOtherTotal
Six Months Ended June 30, 2020
United States$31,849  $68,640  $13,661  $1,686  $115,836  
Other Americas1,625  4,117  186  359  6,287  
Total Americas33,474  72,757  13,847  2,045  122,123  
China60,205  38,534  17,428  1,249  117,416  
Other APAC23,894  22,788  9,224  1,001  56,907  
Total APAC84,099  61,322  26,652  2,250  174,323  
Germany6,381  8,433  28,755  193  43,762  
Other EMEA11,539  12,640  22,687  2,893  49,759  
Total EMEA17,920  21,073  51,442  3,086  93,521  
Total net sales$135,493  $155,152  $91,941  $7,381  $389,967  
Six Months Ended June 30, 2019
United States$29,343  $84,835  $15,685  $2,369  $132,232  
Other Americas1,791  4,273  249  397  6,710  
Total Americas31,134  89,108  15,934  2,766  138,942  
China91,822  46,265  22,347  3,466  163,900  
Other APAC31,167  30,022  11,963  1,569  74,721  
Total APAC122,989  76,287  34,310  5,035  238,621  
Germany8,423  6,907  36,252  276  51,858  
Other EMEA10,453  14,354  24,980  3,442  53,229  
Total EMEA18,876  21,261  61,232  3,718  105,087  
Total net sales$172,999  $186,656  $111,476  $11,519  $482,650  
(1)Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.
Revenue from Contracts with Customers
We have contract assets primarily related to unbilled revenue for revenue recognized related to products that are deemed to have no alternative use whereby we have the right to payment. Revenue is recognized in advance of billing to the customer in these circumstances as billing is typically performed at the time of shipment to the customer. The unbilled revenue is included in contract assets on the condensed consolidated statements of financial position.
Contract assets by operating segment were as follows:
(Dollars in thousands)June 30, 2020December 31, 2019
Advanced Connectivity Solutions$—  $—  
Elastomeric Material Solutions1,004  1,077  
Power Electronics Solutions16,312  19,471  
Other1,964  1,907  
Total contract assets$19,280  $22,455  
We did not have any contract liabilities as of June 30, 2020 or December 31, 2019. No impairment losses were recognized for either of the three or six-month periods ended June 30, 2020 and 2019, respectively, on any receivables or contract assets arising from our contracts with customers.