10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q

_______________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number 1-4347

_______________________________

ROGERS CORPORATION

(Exact Name of Registrant as Specified in its Charter)

_______________________________

Massachusetts	06-0513860
(State or Other Jurisdiction of	(I. R. S. Employer Identification No.)
Incorporation or Organization)

2225 W. Chandler Blvd., Chandler, Arizona 85224-6155

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (480) 917-6000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)	Name of each exchange on which registered
Common Stock,	par value $1.00 per share	ROG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s capital stock as of October 26, 2020 was 18,675,798.

ROGERS CORPORATION

FORM 10-Q

September 30, 2020

TABLE OF CONTENTS
Part I – Financial Information
	Item 1.	Condensed Consolidated Financial Statements (Unaudited):
		Condensed Consolidated Statements of Operations	3
		Condensed Consolidated Statements of Comprehensive Income (Loss)	4
		Condensed Consolidated Statements of Financial Position	5
		Condensed Consolidated Statements of Cash Flows	6
		Condensed Consolidated Statements of Shareholders’ Equity	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Results of Operations and Financial Position	25
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
	Item 4.	Controls and Procedures	39
Part II – Other Information
	Item 1.	Legal Proceedings	40
	Item 1A.	Risk Factors	40
	Item 6.	Exhibits	40
		Signatures	41

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Refer to “Forward-Looking Statements” in Item 2, Management’s Discussion and Analysis of Results of Operations and Financial Position for additional information.

2

Part I – Financial Information

Item 1.    Financial Statements

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and shares in thousands, except per share amounts)

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	$	201,944	$	221,842	$	591,911	$	704,492
Cost of sales	126,426		142,975		380,794		454,403
Gross margin	75,518		78,867		211,117		250,089
Selling, general and administrative expenses	50,230		40,448		132,254		127,349
Research and development expenses	7,085		7,830		22,185		23,282
Restructuring and impairment charges	9,413		580		9,413		2,485
Other operating (income) expense, net	(4)		124		(96)		1,075
Operating income	8,794		29,885		47,361		95,898
Equity income in unconsolidated joint ventures	937		1,498		3,177		4,077
Pension settlement charges	—		—		(55)		—
Other income (expense), net	1,446		(918)		1,294		(915)
Interest expense, net	(3,553)		(1,747)		(6,539)		(5,723)
Income before income tax expense	7,624		28,718		45,238		93,337
Income tax expense	618		5,331		10,453		17,258
Net income	$	7,006	$	23,387	$	34,785	$	76,079
Basic earnings per share	$	0.37	$	1.26	$	1.86	$	4.10
Diluted earnings per share	$	0.37	$	1.25	$	1.86	$	4.07
Shares used in computing:
Basic earnings per share	18,688		18,581		18,678		18,569
Diluted earnings per share	18,713		18,724		18,695		18,715

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Dollars in thousands)

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net income	$	7,006	$	23,387	$	34,785	$	76,079
Foreign currency translation adjustment	11,269		(10,187)		10,004		(12,262)
Pension and other postretirement benefits:
Pension settlement benefits, net of tax (Note 4)	—		—		(48)		—
Actuarial net gain incurred, net of tax (Note 4)	3		—		629		—
Amortization of loss, net of tax (Note 4)	66		172		199		485
Derivative instrument designated as cash flow hedge:
Change in unrealized loss before reclassifications, net of tax (Note 4)	(638)		(158)		(1,504)		(1,362)
Unrealized loss (gain) reclassified into earnings, net of tax (Note 4)	2,810		(32)		2,476		(188)
Other comprehensive income (loss)	13,510		(10,205)		11,756		(13,327)
Comprehensive income	$	20,516	$	13,182	$	46,541	$	62,752

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(Dollars and shares in thousands, except par value)

	September 30, 2020		December 31, 2019
Assets
Current assets
Cash and cash equivalents	$	186,123	$	166,849
Accounts receivable, less allowance for doubtful accounts of $1,366 and $1,691	138,611		122,285
Contract assets	22,061		22,455
Inventories	109,733		132,859
Prepaid income taxes	3,406		4,524
Asbestos-related insurance receivables, current portion	4,292		4,292
Other current assets	10,217		10,838
Total current assets	474,443		464,102
Property, plant and equipment, net of accumulated depreciation of $370,164 and $341,119	266,104		260,246
Investments in unconsolidated joint ventures	12,755		16,461
Deferred income taxes	26,907		17,117
Goodwill	265,781		262,930
Other intangible assets, net of amortization	132,818		158,947
Pension assets	4,337		12,790
Asbestos-related insurance receivables, non-current portion	74,024		74,024
Other long-term assets	14,871		6,564
Total assets	$	1,272,040	$	1,273,181
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	35,886	$	33,019
Accrued employee benefits and compensation	35,991		29,678
Accrued income taxes payable	6,235		10,649
Asbestos-related liabilities, current portion	5,007		5,007
Other accrued liabilities	23,237		21,872
Total current liabilities	106,356		100,225
Borrowings under revolving credit facility	60,000		123,000
Pension and other postretirement benefits liabilities	1,654		1,567
Asbestos-related liabilities, non-current portion	80,540		80,873
Non-current income tax	15,509		10,423
Deferred income taxes	9,497		9,220
Other long-term liabilities	11,460		13,973
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,676 and 18,577 shares issued and outstanding	18,676		18,577
Additional paid-in capital	145,010		138,526
Retained earnings	858,487		823,702
Accumulated other comprehensive loss	(35,149)		(46,905)
Total shareholders' equity	987,024		933,900
Total liabilities and shareholders' equity	$	1,272,040	$	1,273,181

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Nine Months Ended
	September 30, 2020		September 30, 2019
Operating Activities:
Net income	$	34,785	$	76,079
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	48,562		37,176
Equity compensation expense	10,317		9,294
Deferred income taxes	(9,987)		(5,565)
Equity in undistributed income of unconsolidated joint ventures	(3,177)		(4,077)
Dividends received from unconsolidated joint ventures	7,075		5,375
Pension settlement benefits	(63)		—
Pension and other postretirement benefits	(149)		(503)
Asbestos-related charges	—		67
Loss on sale or disposal of property, plant and equipment	49		278
Impairment charges	386		1,537
Provision (benefit) for doubtful accounts	(63)		16
Changes in assets and liabilities:
Accounts receivable	(14,702)		3,668
Contract assets	394		(1,342)
Inventories	25,008		(7,788)
Pension and postretirement benefit contributions	(248)		(16)
Other current assets	1,876		641
Accounts payable and other accrued expenses	5,236		(2,552)
Other, net	8,374		3,384
Net cash provided by operating activities	113,673		115,672
Investing Activities:
Capital expenditures	(28,944)		(38,827)
Proceeds from the sale of property, plant and equipment, net	—		9
Return of capital from unconsolidated joint ventures	—		2,625
Net cash used in investing activities	(28,944)		(36,193)
Financing Activities:
Proceeds from borrowings under revolving credit facility	150,000		—
Repayment of debt principal and finance lease obligations	(213,299)		(98,294)
Payments of taxes related to net share settlement of equity awards	(5,107)		(7,309)
Proceeds from the exercise of stock options, net	—		344
Proceeds from issuance of shares to employee stock purchase plan	1,373		1,249
Net cash provided by (used in) financing activities	(67,033)		(104,010)
Effect of exchange rate fluctuations on cash	1,578		(2,460)
Net increase (decrease) in cash and cash equivalents	19,274		(26,991)
Cash and cash equivalents at beginning of period	166,849		167,738
Cash and cash equivalents at end of period	$	186,123	$	140,747
Supplemental Disclosures:
Accrued capital additions	$	1,493	$	1,999
Cash paid during the year for:
Interest, net of amounts capitalized	$	4,301	$	6,449
Income taxes	$	21,645	$	16,018

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars and shares in thousands)

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Capital Stock
Balance, beginning of period	$	18,668	$	18,559	$	18,577	$	18,395
Shares issued for vested restricted stock units, net of shares withheld for taxes	1		2		86		139
Stock options exercised	—		1		—		11
Shares issued for employee stock purchase plan	7		8		13		15
Shares issued to directors	—		2		—		12
Balance, end of period	18,676		18,572		18,676		18,572
Additional Paid-In Capital
Balance, beginning of period	141,092		131,836		138,526		132,360
Shares issued for vested restricted stock units, net of shares withheld for taxes	(79)		113		(5,193)		(7,448)
Stock options exercised	—		16		—		333
Shares issued for employee stock purchase plan	702		647		1,360		1,234
Shares issued to directors	—		(2)		—		(12)
Equity compensation expense	3,295		3,151		10,317		9,294
Balance, end of period	145,010		135,761		145,010		135,761
Retained Earnings
Balance, beginning of period	851,481		829,075		823,702		776,403
Net income	7,006		23,387		34,785		76,079
Cumulative-effect adjustment for lease accounting	—		—		—		(20)
Balance, end of period	858,487		852,462		858,487		852,462
Accumulated Other Comprehensive Loss
Balance, beginning of period	(48,659)		(81,956)		(46,905)		(78,834)
Other comprehensive income (loss)	13,510		(10,205)		11,756		(13,327)
Balance, end of period	(35,149)		(92,161)		(35,149)		(92,161)
Total Shareholders’ Equity	$	987,024	$	914,634	$	987,024	$	914,634

The accompanying notes are an integral part of the condensed consolidated financial statements.

7

ROGERS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Basis of Presentation

As used herein, the terms “Company,” “Rogers,” “we,” “us,” “our” and similar terms mean Rogers Corporation and its consolidated subsidiaries, unless the context indicates otherwise.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the accompanying condensed consolidated financial statements include all normal recurring adjustments necessary for their fair presentation in accordance with GAAP. All significant intercompany balances and transactions have been eliminated.

Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Refer to the discussion below for our restructuring activities significant accounting policy.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of September 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for doubtful accounts, equity compensation, the carrying value of our goodwill, other intangible assets as well as other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition.

Restructuring Activities

We record charges associated with restructuring activities, such as employee termination benefits, which represent a one-time benefit, when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with restructuring activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs.

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:

•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.

As a result of our pension termination and settlement efforts in late 2019 and the first half of 2020, we have a pension surplus investment balance, which is now accounted for as an available-for-sale investment as of June 2020. For additional information regarding this balance, refer to “Note 11 – Pension Benefits and Other Postretirement Benefits.” Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Available-for-Sale Investment at Fair Value as of September 30, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,911	$	2,416	$	—	$	9,327

(1) This balance was invested in funds comprised of short-term cash and fixed income securities, and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of September 30, 2020, the fair value of this investment approximated its carrying value.

8

From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts, copper derivative contracts and interest rate swaps. Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Derivative Instruments at Fair Value as of September 30, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(106)	$	—	$	(106)
Copper derivative contracts	$	—	$	2,640	$	—	$	2,640
Interest rate swap contract	$	—	$	—	$	—	$	—

	Derivative Instruments at Fair Value as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(6)	$	—	$	(6)
Copper derivative contracts	$	—	$	1,147	$	—	$	1,147
Interest rate swap contract	$	—	$	(1,254)	$	—	$	(1,254)

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item.

For additional information on derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

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, commodity pricing risk (primarily related to copper) and interest rate risk. We do not use derivative instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of these risks is described below:

•Foreign Currency – The fair value of any foreign currency option derivative is based upon valuation models applied to current market information such as strike price, spot rate, maturity date and volatility, and by reference to market values resulting from an over-the-counter market or obtaining market data for similar instruments with similar characteristics.

•Commodity – The fair value of copper derivatives is computed using a combination of intrinsic and time value valuation models, which are collectively a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate and volatility. The intrinsic valuation model reflects the difference between the strike price of the underlying copper derivative instrument and the current prevailing copper prices in an over-the-counter market at period end. The time value valuation model incorporates changes in the price of the underlying copper derivative instrument, the time value of money, the underlying copper derivative instrument’s strike price and the remaining time to the underlying copper derivative instrument’s expiration date from the period end date.

•Interest Rates – The fair value of interest rate swap instruments is derived by comparing the present value of the interest rate forward curve against the present value of the swap rate, relative to the notional amount of the swap. The net value represents the estimated amount we would receive or pay to terminate the agreements. Settlement amounts for an “in the money” swap would be adjusted down to compensate the counterparties for cost of funds, and the adjustment is directly related to the counterparties’ credit ratings.

The guidance for the accounting and disclosure of derivatives and hedging transactions requires companies to recognize all of their derivative instruments as either assets or liabilities at fair value in the condensed consolidated statements of financial position. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies for hedge accounting treatment as defined under the applicable accounting guidance. For derivative instruments that are designated and qualify for hedge accounting treatment as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) in the condensed consolidated statements of comprehensive income (loss). This gain or loss is reclassified into earnings in the same line item of the condensed consolidated statements of operations associated with the forecasted transaction and in the same period or

9

periods during which the hedged transaction affects earnings. As of September 30, 2019, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge, and the hedge was highly effective.

Foreign Currency

During the three months ended September 30, 2020, we entered into U.S. dollar, euro, and Korean won forward contracts. We entered into these foreign currency forward contracts to mitigate certain global transactional exposures. These contracts do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other (expense) income, net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2020, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	30,138,505
EUR/USD	€	9,430,781
KRW/USD	₩	11,684,000,000

Commodity

As of September 30, 2020, we had 21 outstanding contracts to hedge exposure related to the purchase of copper in our Power Electronics Solutions (PES) and Advanced Connectivity Solutions (ACS) operating segments. These contracts are held with financial institutions and are intended to offset rising copper prices and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other (expense) income, net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2020, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2020 - December 2020	201 metric tons per month
January 2021 - March 2021	256 metric tons per month
April 2021 - June 2021	256 metric tons per month
July 2021 - September 2021	222 metric tons per month

Interest Rates

In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction was designated as a cash flow hedge and qualified for hedge accounting treatment. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million. As a result of the termination of the interest rate swap, there is an offsetting decrease in the forecasted interest expense, net over the remaining term of the now-terminated interest rate swap, which was set to expire in February 2022. For additional information regarding our revolving credit facility, refer to “Note 9 – Debt.”

10

Effects on Financial Statements

The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows:

		Three Months Ended				Nine Months Ended
(Dollars in thousands)	Financial Statement Line Item	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other (expense) income, net	$	(823)	$	181	$	(1,378)	$	(406)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other (expense) income, net	$	1,238	$	(543)	$	1,067	$	(1,008)
Interest Rate Swap
Contract designated as hedging instrument	Other comprehensive income (loss)	$	2,771	$	(240)	$	1,254	$	(1,985)

Note 4 – Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Derivative Instrument Designated as Cash Flow Hedge(2)		Total
Balance as of December 31, 2019	$	(35,478)	$	(10,455)	$	(972)	$	(46,905)
Other comprehensive income (loss) before reclassifications	10,004		629		(1,504)		9,129
Amounts reclassified from accumulated other comprehensive loss	—		151		2,476		2,627
Net current-period other comprehensive income (loss)	10,004		780		972		11,756
Balance as of September 30, 2020	$	(25,474)	$	(9,675)	$	—	$	(35,149)
Balance as of December 31, 2018	$	(30,488)	$	(48,700)	$	354	$	(78,834)
Other comprehensive loss before reclassifications	(12,262)		—		(1,362)		(13,624)
Amounts reclassified from accumulated other comprehensive loss	—		485		(188)		297
Net current-period other comprehensive income (loss)	(12,262)		485		(1,550)		(13,327)
Balance as of September 30, 2019	$	(42,750)	$	(48,215)	$	(1,196)	$	(92,161)

(1) Net of taxes of $2,154 and $2,368 as of September 30, 2020 and December 31, 2019, respectively. Net of taxes of $9,851 and $9,984 as of September 30, 2019 and December 31, 2018, respectively.

(2) Net of taxes of $0 and $282 as of September 30, 2020 and December 31, 2019, respectively. Net of taxes of $329 and $(106) as of September 30, 2019 and December 31, 2018, respectively.

Note 5 – Inventories

Inventories, which are valued at the lower of cost or net realizable value, consisted of the following:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Raw materials	$	52,105	$	61,338
Work-in-process	26,452		30,043
Finished goods	31,176		41,478
Total inventories	$	109,733	$	132,859

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Note 6 – Goodwill and Other Intangible Assets

Goodwill

The changes in the net carrying amount of goodwill by operating segment were as follows:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2019	$	51,694	$	142,030	$	66,982	$	2,224	$	262,930
Foreign currency translation adjustment	—		(176)		3,027		—		$	2,851
September 30, 2020	$	51,694	$	141,854	$	70,009	$	2,224	$	265,781

Other Intangible Assets

The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows:

	September 30, 2020						December 31, 2019
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	149,891	$	58,935	$	90,956	$	149,317	$	39,018	$	110,299
Technology	82,102		50,776		31,326		80,938		45,190		35,748
Trademarks and trade names	11,986		6,676		5,310		11,994		4,361		7,633
Covenants not to compete	1,340		746		594		1,340		505		835
Total definite-lived other intangible assets	245,319		117,133		128,186		243,589		89,074		154,515
Indefinite-lived other intangible asset	4,632		—		4,632		4,432		—		4,432
Total other intangible assets	$	249,951	$	117,133	$	132,818	$	248,021	$	89,074	$	158,947

In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations.

Amortization expense was $15.4 million and $4.4 million for the three months ended September 30, 2020 and 2019, respectively, and was $26.7 million and $13.3 million for the nine months ended September 30, 2020 and 2019, respectively. The estimated future amortization expense is $15.4 million for the remainder of 2020 and $12.3 million, $11.8 million, $11.3 million and $9.9 million for 2021, 2022, 2023 and 2024, respectively. The increase in amortization expense for the three and nine months ended September 30, 2020, and decrease in forecasted amortization expense in future years, were due to the acceleration of amortization expense related to our Diversified Silicone Products, Inc. (DSP) customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020. As part of our ongoing assessment of the useful lives of our definite-lived other intangible assets, we reviewed the deterioration of our DSP business and identified significant customer attrition, a sustained substantial decrease in net sales, as well as the planned phase-out of the DSP trademark and trade name by December 2020. Based on these events and circumstances, we concluded an adjustment to the remaining useful lives of our DSP customer relationships and trademarks and trade names definite-lived other intangible assets was warranted.

The weighted average amortization period as of September 30, 2020, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	5.5 years
Technology	4.0 years
Trademarks and trade names	3.8 years
Covenants not to compete	1.3 years
Total definite-lived other intangible assets	5.0 years

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Note 7 – Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars and shares in thousands, except per share amounts)	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Numerator:
Net income	$	7,006	$	23,387	$	34,785	$	76,079
Denominator:
Weighted-average shares outstanding - basic	18,688		18,581		18,678		18,569
Effect of dilutive shares	25		143		17		146
Weighted-average shares outstanding - diluted	18,713		18,724		18,695		18,715
Basic earnings per share	$	0.37	$	1.26	$	1.86	$	4.10
Diluted earnings per share	$	0.37	$	1.25	$	1.86	$	4.07

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 September 30, 2020 and 2019, 32,501 shares and 3,173 shares were excluded, respectively.

Note 8 – Capital Stock and Equity Compensation

Equity Compensation

Performance-Based Restricted Stock Units

As of September 30, 2020, we had performance-based restricted stock units from 2020, 2019, and 2018 outstanding. These awards generally cliff vest at the end of a three-year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The outstanding awards have one measurement criterion: the three-year total shareholder return (TSR) on our capital stock as compared to that of a specified group of peer companies. The TSR measurement criterion of the awards is considered a market condition. As such, the fair value of this measurement criterion was determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2020 and 2019:

	February 12, 2020	June 3, 2019	February 7, 2019
Expected volatility	41.0%	39.7%	36.7%
Expected term (in years)	2.9	2.6	2.9
Risk-free interest rate	1.41%	1.78%	2.43%

Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility.

Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model.

Risk-free interest rate – We use an implied “spot rate” yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate.

Expected dividend yield – We do not currently pay dividends on our capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model.

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A summary of activity of the outstanding performance-based restricted stock units for the nine months ended September 30, 2020 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2019	106,943
Awards granted	87,244
Stock issued	(75,486)
Awards forfeited	(5,866)
Awards outstanding as of September 30, 2020	112,835

We recognized $1.6 million and $1.5 million of compensation expense for performance-based restricted stock units for the three months ended September 30, 2020 and 2019, respectively. We recognized $4.3 million and $3.5 million of compensation expense for performance-based restricted stock units for the nine months ended September 30, 2020 and 2019, respectively.

Time-Based Restricted Stock Units

As of September 30, 2020, we had time-based restricted stock unit awards from 2020, 2019, 2018 and 2017 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur.

A summary of activity of the outstanding time-based restricted stock units for the nine months ended September 30, 2020 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2019	101,685
Awards granted	58,288
Stock issued	(48,901)
Awards forfeited	(4,962)
Awards outstanding as of September 30, 2020	106,110

We recognized $1.5 million and $1.5 million of compensation expense for time-based restricted stock units for the three months ended September 30, 2020 and 2019, respectively. We recognized $4.6 million and $4.4 million of compensation expense for time-based restricted stock units for the nine months ended September 30, 2020 and 2019, respectively.

Deferred Stock Units

We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date.

A summary of activity of the outstanding deferred stock units for the nine months ended September 30, 2020 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2019	7,150
Awards granted	9,400
Stock issued	(5,100)
Awards outstanding as of September 30, 2020	11,450

We recognized no compensation expense related to deferred stock units for the three months ended September 30, 2020 and 2019, respectively. We recognized $1.0 million and $1.1 million of compensation expense for the nine months ended September 30, 2020 and 2019, respectively.

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Note 9 – Debt

In February 2017, we entered into a secured five-year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the Third Amended Credit Agreement), which increased the principal amount of our revolving credit facility to up to $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, and provided an additional $175.0 million accordion feature. Borrowings may be used to finance working capital needs, for letters of credit and for general corporate purposes in the ordinary course of business, including the financing of permitted acquisitions (as defined in the Third Amended Credit Agreement).

All obligations under the Third Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Third Amended Credit Agreement (the Guarantors). The obligations are also secured by a Third Amended and Restated Pledge and Security Agreement, dated as of February 17, 2017, entered into by us and the Guarantors which grants to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of the non-real estate assets of the Guarantors. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries. All revolving loans are due on the maturity date, February 17, 2022.

Borrowings under the Third Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest at a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the Federal Reserve Bank of New York (NYFRB) rate in effect on such day plus ½ of 1% and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 137.5 to 175.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of September 30, 2020, the spread was 137.5 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Third Amended Credit Agreement, we are required to pay a quarterly fee of 20 to 30 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Third Amended Credit Agreement.

The Third Amended Credit Agreement contains customary representations, warranties, covenants, mandatory prepayments and events of default under which our payment obligations may be accelerated. If an event of default occurs, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings to be immediately due and payable together with accrued interest and fees. The financial covenants include requirements to maintain (1) a leverage ratio of no more than 3.25 to 1.00, subject to an election to increase the maximum leverage ratio to 3.50 to 1.00 for three fiscal quarters in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00.

The Third Amended Credit Agreement generally permits us to pay cash dividends to our shareholders, provided that (i) no default or event of default has occurred and is continuing or would result from the dividend payment and (ii) our leverage ratio does not exceed 2.75 to 1.00. If our leverage ratio exceeds 2.75 to 1.00, we may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during the fiscal year, provided that no default or event of default has occurred and is continuing or would result from the payments. Our leverage ratio did not exceed 2.75 to 1.00 as of September 30, 2020.

In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction was designated as a cash flow hedge and qualified for hedge accounting treatment. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million.

We borrowed $150.0 million under our revolving credit facility as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic, during the three months ended March 31, 2020. We did not borrow anything further under our revolving credit facility for the three and nine months ended September 30, 2020. We are not required to make any quarterly principal payments under the Third Amended Credit Agreement. However, for the three and nine months ended September 30, 2020, we made $163.0 million and $213.0 million of discretionary principal payments on our revolving credit facility, respectively. We had $60.0 million in outstanding borrowings under our revolving credit facility as of September 30, 2020.

We incurred interest expense on our outstanding debt, net of the impacts of our interest rate swap, of $3.4 million and $1.8 million for the three months ended September 30, 2020 and 2019, respectively, and $6.3 million and $6.1 million for the nine months ended September 30, 2020, and 2019, respectively. We incurred immaterial unused commitment fees for each of the three- and nine-month periods ended September 30, 2020 and 2019.

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We had $0.7 million and $1.2 million of outstanding line of credit issuance costs as of September 30, 2020 and December 31, 2019, respectively, which will be amortized over the life of the Third Amended Credit Agreement. We recognized an immaterial amount of amortization expense for each of the three- and nine-month periods ended September 30, 2020 and 2019, related to these deferred costs.

On October 16, 2020, we entered into the Fourth Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A, as administrative agent, and the lenders party thereto (the Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement amends and restates the Third Amended Credit Agreement, and provides for a revolving credit facility with up to a $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, in addition to a $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 Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement extends the maturity, the date on which all amounts borrowed or outstanding under the Fourth Amended Credit Agreement are due, from February 17, 2022 to March 31, 2024.

All obligations under the Fourth Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fourth Amended Credit Agreement (the Guarantors). The obligations are also secured by a Fourth Amended and Restated Pledge and Security Agreement, dated as of October 16, 2020, 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 our and the Guarantors’ non-real estate assets. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

Borrowings under the Fourth 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 62.5 to 100.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the NYFRB rate in effect on such day plus ½ of 1%, and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Fourth Amended Credit Agreement, we are required to pay a quarterly fee of 25 to 35 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement contains customary representations and 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 total net leverage ratio of no more than 3.25 to 1.00, subject to a one-time election to increase the maximum total net 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. We are permitted to net up to $50.0 million of unrestricted domestic cash and cash equivalents against indebtedness in the calculation of the total net leverage ratio.

Note 10 - Leases

We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.4 million and $4.5 million as of September 30, 2020 and December 31, 2019, respectively. The finance lease right-of-use asset balance for this facility was $6.3 million and $6.3 million as of September 30, 2020 and December 31, 2019, respectively. Accumulated amortization related to this finance lease right-of-use asset was $4.2 million and $3.8 million as of September 30, 2020 and December 31, 2019, respectively. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of September 30, 2020 and December 31, 2019.

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019.

We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We

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account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.

Our expenses and payments for operating leases were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating leases expense	$	846	$	843	$	2,268	$	2,336
Short-term leases expense	$	154	$	68	$	384	$	150
Payments on operating lease obligations	$	719	$	719	$	2,187	$	2,243

Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2020		December 31, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,307	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,039	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,433	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	—	$	4,140
Total finance lease obligations		$	4,433	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,135	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,023	$	2,334
Total operating lease obligations		$	4,158	$	4,677

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2020:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Total Leases		Leases Signed		Less: Leases Not Yet Commenced		Total Leases
2020	$	139	$	—	$	139	$	674	$	(2)	$	672
2021	4,584		(193)		4,391		2,002		(12)		1,990
2022	193		(193)		—		1,096		(17)		1,079
2023	186		(186)		—		454		(15)		439
2024	—		—		—		211		(5)		206
Thereafter	—		—		—		5		—		5
Total lease payments	5,102		(572)		4,530		4,442		(51)		4,391
Less: Interest	(124)		27		(97)		(236)		3		(233)
Present Value of Net Future Minimum Lease Payments	$	4,978	$	(545)	$	4,433	$	4,206	$	(48)	$	4,158

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.3 years
Weighted Average Discount Rate	3.00%	4.84%

Note 11 – Pension Benefits and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of December 31, 2019, we had two qualified noncontributory defined benefit pension plans. In June 2020, we completed the remaining settlement efforts for the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly

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Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)), which had been terminated and substantially settled in late 2019. As of September 30, 2020, only the Rogers Corporation Employees’ Pension Plan (the Union Plan), which was frozen and ceased accruing benefits, remained. There are no plans to terminate the Union Plan.

Additionally, we sponsor other postretirement benefit plans, including multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31st for each respective plan year.

Pension Plan Termination & Settlement

During the second quarter of 2019, following receipt of a determination letter from the Internal Revenue Service (IRS), we amended the Merged Plan to (a) terminate the Merged Plan (subject to discretionary approval by our Chief Executive Officer) and (b) add a lump sum distribution option in connection with the termination of the Merged Plan, if approved. We subsequently provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity.

On October 17, 2019, our Chief Executive Officer approved the termination of the Merged Plan. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution, for $123.3 million, with an initial cash settlement date of October 24, 2019, and a true-up cash settlement date of June 1, 2020. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020.

Lump sum distributions of $38.9 million were paid out prior to December 31, 2019. The Merged Plan paid an additional $1.3 million of monthly pension benefit payments subsequent to the annuity purchase date during the transition period ending December 31, 2019.

In addition, we recorded a total non-cash pre-tax settlement charge in connection with the termination of the Merged Plan of $53.2 million during the fourth quarter of 2019, as well as an immaterial non-cash pre-tax settlement benefit during the second quarter of 2020. This net settlement amount recognized included the immediate recognition into expense of the related unrecognized losses within “Accumulated other comprehensive loss” on the consolidated statements of financial position as of the plan termination date. The pension settlement charge during the fourth quarter of 2019 was recognized in the “Pension settlement charges” line item in the consolidated statements of operations, and the pension settlement benefit during the second quarter of 2020 was recognized in the “Pension settlement charges” line item in the condensed consolidated statements of operations.

As of September 30, 2020, the remaining pension surplus investment balance was approximately $9.3 million. We plan on using a portion of the funds to pay plan expenses, and moving the remainder funds from the pension trust to a defined contribution plan trust, where they will be used to fund certain employer contributions and pay plan expenses. On July 27, 2020, we transferred $7.4 million of the pension surplus investment balance to a suspense account held within a trust for the Rogers Employee Savings and Investment Plan, a 401(k) plan for domestic employees.

Components of Net Periodic Benefit (Credit) Cost

The components of net periodic benefit (credit) cost were as follows:

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)	2020		2019		2020		2019		2020		2019		2020		2019
Service cost	$	—	$	—	$	—	$	—	$	17	$	12	$	51	$	48
Interest cost	223		1,790		685		5,359		10		14		30		44
Expected return of plan assets	(394)		(2,187)		(1,180)		(6,571)		—		—		—		—
Amortization of prior service credit	—		—		—		—		(28)		(252)		(84)		(758)
Amortization of net loss	99		476		327		1,386		—		—		—		—
Settlement benefit	—		—		(63)		—		—		—		—		—
Net periodic benefit (credit) cost	$	(72)	$	79	$	(231)	$	174	$	(1)	$	(226)	$	(3)	$	(666)

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Employer Contributions

There were no required or voluntary contributions made to our Merged Plan for the three and nine-month periods ended September 30, 2020 and 2019. Additionally, there were no required or voluntary contributions made to our Union Plan for the three and nine-month periods ended September 30, 2020 and 2019, and we are not required to make additional contributions to this plan for the remainder of 2020.

As there is no funding requirement for the other postretirement benefit plans, we funded these benefit payments as incurred, which were immaterial for each of the three and nine-month periods ended September 30, 2020 and 2019, using cash from operations.

Note 12 – Commitments and Contingencies

We are currently engaged in the following material environmental and legal proceedings:

Voluntary Corrective Action Program

Our location in Rogers, Connecticut is part of the Connecticut Voluntary Corrective Action Program (VCAP). As part of this program, we partnered with the Connecticut Department of Energy and Environmental Protection (CT DEEP) to determine the corrective actions to be taken at the site related to contamination issues. We evaluated this matter and completed internal due diligence work related to the site in the fourth quarter of 2015. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We incurred $1.7 million of aggregate remediation costs through September 30, 2020, and the accrual for future remediation efforts is $1.0 million.

Asbestos

Overview

We, like many other industrial companies, have been named as a defendant in a number of lawsuits filed in courts across the country by persons alleging personal injury from exposure to products containing asbestos. We have never mined, milled, manufactured or marketed asbestos; rather, we made and provided to industrial users a limited number of products that contained encapsulated asbestos, but we stopped manufacturing these products in the late 1980s. Most of the claims filed against us involve numerous defendants, sometimes as many as several hundred.

The following table summarizes the change in number of asbestos claims outstanding for the nine months ended September 30, 2020:

	Asbestos Claims
Claims outstanding as of January 1, 2020	592
New claims filed	88
Pending claims concluded(1)	(122)
Claims outstanding as of September 30, 2020	558

(1) For the nine months ended September 30, 2020, 103 claims were dismissed and 19 claims were settled. Settlements totaled approximately $5.4 million for the nine months ended September 30, 2020.

Impact on Financial Statements

We recognize a liability for asbestos-related contingencies that are probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos-related matters, we record asbestos-related insurance receivables that are deemed probable.

The liability projection period covers all current and future indemnity and defense costs through 2064, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy.

To date, the indemnity and defense costs of our asbestos-related product liability litigation have been substantially covered by insurance. Although we have exhausted coverage under some of our insurance policies, we believe that we have applicable primary, excess and/or umbrella coverage for claims arising with respect to most of the years during which we manufactured and marketed asbestos-containing products. In addition, we have entered into a cost sharing agreement with most of our primary, excess and umbrella insurance carriers to facilitate the ongoing administration and payment of claims covered by the carriers. The cost sharing agreement may be terminated by any party, but will continue until a party elects to terminate it. As of the filing date for this report, the agreement has not been terminated, and no carrier had informed us it intended to terminate the agreement. We expect to continue to exhaust individual primary, excess and umbrella coverages over time, and there is no

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assurance that such exhaustion will not accelerate due to additional claims, damages and settlements or that coverage will be available as expected. We are responsible for uninsured indemnity and defense costs, and we incurred an immaterial amount of expenses for each of the three- and nine-month periods ended September 30, 2020 and 2019, respectively, related to such costs.

The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded.

Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income.

Our projected asbestos-related liabilities and insurance receivables were as follows:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Asbestos-related liabilities	$	85,547	$	85,880
Asbestos-related insurance receivables	$	78,316	$	78,316

General

In addition to the above issues, the nature and scope of our business brings us in regular contact with the general public and a variety of businesses and government agencies. Such activities inherently subject us to the possibility of litigation, including environmental and product liability matters that are defended and handled in the ordinary course of business. We have established accruals for matters for which management considers a loss to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position or cash flows.

Note 13 – Income Taxes

Our effective income tax rate was 8.1% and 18.6% for the three months ended September 30, 2020 and 2019, respectively. The decrease from the third quarter of 2019 was primarily due to the beneficial impact of changes in valuation allowance related to research and development (R&D) credits, partially offset by the increase in current quarter accruals of reserves for uncertain tax positions, higher tax impact on unremitted foreign earnings and profits, and changes in pretax mix across jurisdictions with disparate tax rates. Our effective income tax rate was 23.1% and 18.5% for the nine months ended September 30, 2020 and 2019, respectively. The increase from the first nine months of 2019 was primarily due to the increase in current quarter accruals of reserves for uncertain tax positions, the decrease in excess tax deductions on stock-based compensation and higher tax impact on unremitted foreign earnings and profits, partially offset by the beneficial impact of changes in valuation allowance related to R&D credits and pretax mix across jurisdictions with disparate tax rates.

The total amount of unrecognized tax benefits as of September 30, 2020 was $14.9 million, of which $14.5 million would affect our effective tax rate if recognized.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of September 30, 2020, we had $1.1 million accrued for the payment of interest.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. With few exceptions, we are no longer subject to examinations by tax authorities for years prior to 2015.

Note 14 – 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,

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mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive, EV/HEV and aerospace and defense markets.

Our PES operating segment designs, develops, manufactures and sells ceramic substrate materials, busbars and cooling solutions for a variety of applications in EV/HEV, mass transit, clean energy (i.e. variable frequency drives, renewable energy), general industrial, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik® trade name and our busbars under the ROLINX® trade name.

Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR® trade name and our floats under our NITROPHYL® trade name.

The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Three Months Ended September 30, 2020
Net sales - recognized over time	$	219	$	2,612	$	47,827	$	3,568	$	54,226
Net sales - recognized at a point in time	63,495		83,832		100		291		147,718
Total net sales	$	63,714	$	86,444	$	47,927	$	3,859	$	201,944
Operating income (loss)	$	4,981	$	7,372	$	(4,691)	$	1,132	$	8,794
Three Months Ended September 30, 2019
Net sales - recognized over time	$	—	$	3,429	$	42,906	$	4,504	$	50,839
Net sales - recognized at a point in time	78,983		91,511		225		284		171,003
Total net sales	$	78,983	$	94,940	$	43,131	$	4,788	$	221,842
Operating income (loss)	$	13,778	$	17,995	$	(3,358)	$	1,470	$	29,885
Nine Months Ended September 30, 2020
Net sales - recognized over time	$	219	$	8,106	$	139,288	$	10,295	$	157,908
Net sales - recognized at a point in time	198,988		233,490		580		945		434,003
Total net sales	$	199,207	$	241,596	$	139,868	$	11,240	$	591,911
Operating income (loss)	$	26,067	$	21,884	$	(3,929)	$	3,339	$	47,361
Nine Months Ended September 30, 2019
Net sales - recognized over time	$	—	$	9,400	$	153,827	$	13,421	$	176,648
Net sales - recognized at a point in time	251,982		272,196		780		2,886		527,844
Total net sales	$	251,982	$	281,596	$	154,607	$	16,307	$	704,492
Operating income (loss)	$	45,301	$	46,752	$	(976)	$	4,821	$	95,898

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Net sales by operating segment and by geographic area were as follows:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Three Months Ended September 30, 2020
United States	$	18,058	$	29,733	$	5,901	$	980	$	54,672
Other Americas	497		2,517		36		144		3,194
Total Americas	18,555		32,250		5,937		1,124		57,866
China	26,641		34,016		11,229		754		72,640
Other APAC	11,588		11,150		4,633		530		27,901
Total APAC	38,229		45,166		15,862		1,284		100,541
Germany	1,973		5,450		12,074		99		19,596
Other EMEA	4,957		3,578		14,054		1,352		23,941
Total EMEA	6,930		9,028		26,128		1,451		43,537
Total net sales	$	63,714	$	86,444	$	47,927	$	3,859	$	201,944
Three Months Ended September 30, 2019
United States	$	17,671	$	41,232	$	8,115	$	1,237	$	68,255
Other Americas	807		2,452		11		271		3,541
Total Americas	18,478		43,684		8,126		1,508		71,796
China	37,398		26,461		7,642		908		72,409
Other APAC	13,813		14,385		6,269		675		35,142
Total APAC	51,211		40,846		13,911		1,583		107,551
Germany	4,251		3,868		10,528		171		18,818
Other EMEA	5,043		6,542		10,566		1,526		23,677
Total EMEA	9,294		10,410		21,094		1,697		42,495
Total net sales	$	78,983	$	94,940	$	43,131	$	4,788	$	221,842

(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.

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(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Nine Months Ended September 30, 2020
United States	$	49,907	$	98,373	$	19,562	$	2,666	$	170,508
Other Americas	2,122		6,634		222		503		9,481
Total Americas	52,029		105,007		19,784		3,169		179,989
China	86,846		72,550		28,657		2,003		190,056
Other APAC	35,482		33,938		13,857		1,531		84,808
Total APAC	122,328		106,488		42,514		3,534		274,864
Germany	8,354		13,883		40,829		292		63,358
Other EMEA	16,496		16,218		36,741		4,245		73,700
Total EMEA	24,850		30,101		77,570		4,537		137,058
Total net sales	$	199,207	$	241,596	$	139,868	$	11,240	$	591,911
Nine Months Ended September 30, 2019
United States	$	47,014	$	126,067	$	23,800	$	3,606	$	200,487
Other Americas	2,598		6,725		260		668		10,251
Total Americas	49,612		132,792		24,060		4,274		210,738
China	129,220		72,726		29,989		4,374		236,309
Other APAC	44,980		44,407		18,232		2,244		109,863
Total APAC	174,200		117,133		48,221		6,618		346,172
Germany	12,674		10,775		46,780		447		70,676
Other EMEA	15,496		20,896		35,546		4,968		76,906
Total EMEA	28,170		31,671		82,326		5,415		147,582
Total net sales	$	251,982	$	281,596	$	154,607	$	16,307	$	704,492

(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)	September 30, 2020		December 31, 2019
Advanced Connectivity Solutions	$	186	$	—
Elastomeric Material Solutions	1,090		1,077
Power Electronics Solutions	19,132		19,471
Other	1,653		1,907
Total contract assets	$	22,061	$	22,455

We did not have any contract liabilities as of September 30, 2020 or December 31, 2019. No impairment losses were recognized for either of the three or nine-month periods ended September 30, 2020 and 2019, respectively, on any receivables or contract assets arising from our contracts with customers.

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Note 15 – Supplemental Financial Information

Restructuring and Impairment Charges

The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Restructuring charges	$	9,027	$	(1)	$	9,027	$	948
Impairment charges	386		581		386		1,537
Total restructuring and impairment charges	$	9,413	$	580	$	9,413	$	2,485

Our PES, ACS and EMS operating segments incurred $6.3 million, $2.9 million and $0.2 million of restructuring and impairment charges, respectively, for the three and nine months ended September 30, 2020.

Restructuring Charges

During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our PES and ACS operating segments, in order to achieve greater cost competitiveness as well as align capacity with end market demand. We expect the majority of the restructuring activities to be completed by the end of the first half of 2021. Severance activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2020:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2019	$	—
Provisions	8,754
Payments	(5)
Foreign currency translation adjustment	(78)
Balance as of September 30, 2020	$	8,671

In 2018, we made the decision to consolidate our Santa Fe Springs, California operations into our facilities in Carol Stream, Illinois and Bear, Delaware, which was completed as of December 31, 2019. We recorded immaterial expense and $0.9 million of expense for the three and nine months ended September 30, 2019, respectively, related to this facility consolidation.

Impairment Charges

We recognized $0.4 million of impairment charges, primarily related to fixed assets in Belgium, for the three and nine months ended September 30, 2020. We recognized $0.6 million and $1.5 million in impairment charges on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition for the three and nine months ended September 30, 2019, respectively.

Other Operating (Income) Expense, Net

The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Lease income	$	—	$	(57)	$	—	$	(932)
Depreciation on leased assets	—		179		—		1,729
Loss on sale or disposal of property, plant and equipment	(4)		2		49		278
Economic incentive grants	—		—		(145)		—
Total other operating (income) expense, net	$	(4)	$	124	$	(96)	$	1,075

In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018, we recognized lease income of $0.1 million and $0.9 million for the three and nine months ended September 30, 2019, respectively, and related depreciation on leased assets of $0.2 million and $1.7 million, respectively, for the three and nine months ended September 30, 2019.

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Interest Expense, Net

The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest on revolving credit facility	$	612	$	1,873	$	3,079	$	6,303
Interest rate swap settlements	2,769		(40)		3,191		(241)
Line of credit fees	112		125		430		378
Debt issuance amortization costs	138		138		414		414
Interest on finance leases	35		29		100		92
Interest income	(135)		(398)		(724)		(1,262)
Other	22		20		49		39
Total interest expense, net	$	3,553	$	1,747	$	6,539	$	5,723

Note 16 – Recent Accounting Standards

Recently Issued Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements.

Recently Adopted Standards Reflected in Our 2020 Financial Statements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our condensed consolidated financial statements.

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Item 2.    Management’s Discussion and Analysis of Results of Operations and Financial Position

As used herein, the “Company,” “Rogers,” “we,” “us,” “our” and similar terms include Rogers Corporation and its subsidiaries, unless the context indicates otherwise.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Such statements are generally accompanied by words such as “anticipate,” “assume,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “seek,” “target” or similar expressions that convey uncertainty as to future events or outcomes. Forward-looking statements are based on assumptions and beliefs that we believe to be reasonable; however, assumed facts almost always vary from actual results, and the differences between assumed facts and actual results could be material depending upon the circumstances. Where we express an expectation or belief as to future results, that expectation or belief is expressed in good faith and based on assumptions believed to have a reasonable basis. We cannot assure you, however, that the stated expectation or belief will occur or be achieved or accomplished. Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:

•the duration and impacts of the novel coronavirus (COVID-19) global pandemic and efforts to contain its transmission, including the effect of these factors on our business, suppliers, customers, end users and economic conditions generally;

•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 (U.S.) and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations;

•the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations and the imposition of tariffs and other trade restrictions, including trade restrictions on Huawei Technologies Co., Ltd. (Huawei);

•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;

•business interruptions due to catastrophes or other similar events, such as natural disasters, war, terrorism or public health crises;

•failure to realize, or delays in the realization of, anticipated benefits of acquisitions and divestitures due to, among other things, the existence of unknown liabilities or difficulty integrating acquired businesses;

•our ability to attract and retain management and skilled technical personnel;

•our ability to protect our proprietary technology from infringement by third parties and/or allegations that our technology infringes third party rights;

•changes in effective tax rates or tax laws and regulations in the jurisdictions in which we operate;

•failure to comply with financial and restrictive covenants in our credit agreement or restrictions on our operational and financial flexibility due to such covenants;

•the outcome of ongoing and future litigation, including our asbestos-related product liability litigation;

•changes in environmental laws and regulations applicable to our business; and

•disruptions in, or breaches of, our information technology systems.

Our forward-looking statements are expressly qualified by these cautionary statements, which you should consider carefully, along with the risks discussed in this section and elsewhere in this report, including under the section entitled “Risk Factors” in Part II, Item 1A and in our Annual Report on Form 10-K for the year ended December 31, 2019 (the Annual Report) and our other reports filed with the Securities and Exchange Commission, any of which could cause actual results to differ materially from historical results or anticipated results. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and the related notes that appear elsewhere in this Form 10-Q along with our audited consolidated financial statements and the related notes thereto in our Annual Report.

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Company Background and Strategy

Rogers Corporation designs, develops, manufactures and sells high-performance and high-reliability engineered materials and components to meet our customers’ demanding challenges. We operate three strategic operating segments: Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS) and Power Electronics Solutions (PES). The remaining operations, which represent our non-core businesses, are reported in our Other operating segment. We have a history of innovation and have established Innovation Centers for our research and development (R&D) activities in Chandler, Arizona, Burlington, Massachusetts, Eschenbach, Germany and Suzhou, China. We are headquartered in Chandler, Arizona. Our growth strategy is based upon the following principles: (1) market-driven organization, (2) innovation leadership, (3) synergistic mergers and acquisitions, and (4) operational excellence. As a market-driven organization, we are focused on growth drivers, including advanced mobility and advanced connectivity. More specifically, in addition to the impact of COVID-19 discussed below, the key medium- to long-term trends currently affecting our business include the increasing use of advanced driver assistance systems (ADAS) and increasing electrification of vehicles, including electric and hybrid electric vehicles (EV/HEV), in the automotive industry and the growth of 5G smartphones in the portable electronics industry. In addition to our focus on advanced mobility and advanced connectivity in the automotive and telecommunications industries, we sell into a variety of other markets including general industrial, connected devices, aerospace and defense, mass transit and renewable energy.

Our sales and marketing approach is based on addressing these trends, while our strategy focuses on factors for success as a manufacturer of engineered materials and components: performance, quality, service, cost, efficiency, innovation and technology. We have expanded our capabilities through organic investment and acquisitions and strive to ensure high quality solutions for our customers. We continue to review and re-align our manufacturing and engineering footprint in an effort to attain a leading competitive position globally. We have established or expanded our capabilities in various locations in support of our customers’ growth initiatives.

We seek to enhance our operational and financial performance by investing in research and development, manufacturing and materials efficiencies, and new product initiatives that respond to the needs of our customers. We strive to evaluate operational and strategic alternatives to improve our business structure and align our business with the changing needs of our customers and major industry trends affecting our business.

COVID-19 Update

The global COVID-19 pandemic has affected and continues to affect Rogers’ business and operations, although to a lesser extent than the first half of 2020. In response to the outbreak, Rogers prioritized the safety and well-being of its employees—including implementing social distancing initiatives in its facilities, providing remote working arrangements for certain employees, expanding personal protective equipment usage, enhancing plant hygiene processes, and extending employee benefits, which increased our expenses in the quarter—while at the same time taking actions to preserve business continuity. Our non-manufacturing employees transitioned seamlessly to remote working arrangements and are maintaining effective collaboration, both internally and with our customers. In some cases, based on local conditions, non-manufacturing employees have returned to their worksites.

Our China business and operations were the first to be impacted by the virus, with the government temporarily suspending our operations, as well as the operations of most Chinese business, including our Chinese customers and suppliers, at the beginning of February. We resumed production in mid-February and reached full production capacity by early-March.

Our U.S. and European businesses were first impacted later in the first quarter, and the impact continued through the first, second and third quarters, and continues through the date of this filing. In both the U.S. and Europe, we generally maintained operations at close to normal levels, with the additional employee safety precautions implemented at our facilities. We do not believe these additional precautions in the aggregate, had a material impact on our financial performance during the first nine months. In the U.S., exemptions from state-level “shelter in place” directives with respect to numerous sectors, including the Communications, Healthcare and Public Health, Defense Industrial Base, Critical Manufacturing and Information Technology sectors, have largely enabled us to continue our operations while those directives were in place, and as states have continued to reopen during the second and third quarters, and through the date of this filing.

Our operations were not affected by any material shortages, as our inventory and supply chain met our manufacturing requirements. Global demand continued to be impacted in the third quarter by the COVID-19 pandemic, although to a lesser extent than prior quarters. General industrial and mass transit market demand continued to be the most impacted. Demand improved in some markets, such as portable electronics, EV/HEV, aerospace and defense and automotive relative to the second quarter.

We expect that the COVID-19 pandemic will have a continuing but uncertain impact on our business and operations in the short- and medium-term. Due to the above circumstances and as described generally in this Form 10-Q, our results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year.

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Executive Summary

The following key highlights and factors should be considered when reviewing our results of operations, financial position and liquidity:

•In the third quarter of 2020 as compared to the third quarter of 2019, our net sales decreased 9.0% to $201.9 million, our gross margin increased approximately 180 basis points to 37.4% from 35.6%, and operating income decreased approximately 910 basis points to 4.4% from 13.5%. In the first nine months of 2020 as compared to the first nine months of 2019, our net sales decreased 16.0% to $591.9 million, our gross margin increased approximately 20 basis points to 35.7% from 35.5%, and operating income decreased approximately 560 basis points to 8.0% from 13.6%.

•We made $213.0 million of discretionary principal payments on our revolving credit facility during the second and third quarters of 2020, partially offset by $150.0 million in borrowings under our revolving credit facility during the first quarter of 2020 as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic.

•We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million.

•We commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our PES and ACS operating segments, and we recognized $9.0 million of restructuring charges in the third quarter of 2020 related to this project.

•We incurred incremental transaction costs of $0.3 million in the third quarter of 2020 and $4.3 million in the first nine months of 2020, due to COVID-19 pandemic. These costs primarily consist of temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as additional safety supplies. A substantial portion of the additional benefits under these programs expired in mid-June. We expect significantly lower costs during the remainder of 2020, associated with the remaining additional benefits, as well as safety supplies, when compared to the first and second quarters of 2020.

•We recognized an additional $11.7 million of amortization expense in the third quarter of 2020 and $15.6 million in the first nine months of 2020, and will recognize an additional $11.7 million of amortization expense in the fourth quarter of 2020, due to the acceleration of amortization expense related to our Diversified Silicone Products, Inc. (DSP) customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020.

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Results of Operations

The following table sets forth, for the periods indicated, selected operations data expressed as a percentage of net sales:

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Gross margin	37.4	%	35.6	%	35.7	%	35.5	%
Selling, general and administrative expenses	24.9	%	18.2	%	22.3	%	18.1	%
Research and development expenses	3.5	%	3.5	%	3.7	%	3.3	%
Restructuring and impairment charges	4.7	%	0.3	%	1.6	%	0.4	%
Other operating (income) expense, net	(0.1)	%	0.1	%	0.1	%	0.1	%
Operating income	4.4	%	13.5	%	8.0	%	13.6	%
Equity income in unconsolidated joint ventures	0.5	%	0.7	%	0.5	%	0.6	%
Other income (expense), net	0.7	%	(0.5)	%	0.2	%	(0.2)	%
Interest expense, net	(1.8)	%	(0.8)	%	(1.1)	%	(0.8)	%
Income before income tax expense	3.8	%	12.9	%	7.6	%	13.2	%
Income tax expense	0.3	%	2.4	%	1.7	%	2.4	%
Net income	3.5	%	10.5	%	5.9	%	10.8	%

Net Sales and Gross Margin
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Net sales	$	201,944		$	221,842		$	591,911		$	704,492
Gross margin	$	75,518		$	78,867		$	211,117		$	250,089
Percentage of net sales	37.4		%	35.6		%	35.7		%	35.5		%

Net sales decreased by 9.0% in the third quarter of 2020 compared to the third quarter of 2019. Our ACS and EMS operating segments had net sales decreases of 19.3% and 8.9%, respectively, while our PES operating segment had a net sales increase of 11.1%. The decrease in net sales was primarily driven by significantly lower net sales in the 4G and 5G wireless infrastructure and automotive markets in our ACS operating segment, lower net sales in the general industrial, mass transit, automotive and consumer markets in our EMS operating segment and lower net sales in the mass transit and variable frequency drives markets in our PES operating segment. The decrease in net sales was partially offset by higher net sales in the aerospace and defense market in our ACS operating segment, higher net sales in the portable electronics and EV/HEV markets in our EMS operating segment and higher net sales in our EV/HEV and renewable energy markets in our PES operating segment. Net sales were favorably impacted by foreign currency impacts of $0.9 million, or 0.4%, due to the appreciation in value of the euro relative to the U.S. dollar.

Net sales decreased by 16.0% in the first nine months of 2020 compared to the first nine months of 2019. Our ACS, EMS and PES operating segments had net sales decreases of 20.9%, 14.2% and 9.5%, respectively. The decrease in net sales was primarily driven by significantly lower net sales in the 4G and 5G wireless infrastructure and automotive markets in our ACS operating segment, lower net sales in the general industrial, mass transit, consumer, portable electronics and automotive markets in our EMS operating segment and lower net sales in the mass transit, variable frequency drives and vehicle electrification markets in our PES operating segment. The decrease in net sales was partially offset by higher net sales in the aerospace and defense market in our ACS operating segment, higher net sales in the EV/HEV market in our EMS operating segment and higher net sales in the EV/HEV and renewable energy markets in our PES operating segment. Net sales were unfavorably impacted by foreign currency impacts of $5.0 million, or 0.7%, due to the depreciation in value of the Chinese renminbi, euro and Korean won relative to the U.S. dollar.

The lower net sales in the 4G and 5G wireless infrastructure markets in our ACS operating segment reflected the waning of 4G infrastructure spending by telecommunications companies in anticipation of 5G, as well as the impacts of the trade restrictions on Huawei, increased competition and design changes by telecommunications equipment original equipment manufacturers

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(OEMs), which reduced our materials content in 5G base stations. The lower net sales in the automotive market was largely due to the impacts of COVID-19 pandemic.

The lower net sales in variable frequency drives market in our PES operating segment was due to a slowdown in industrial automation demand through the first nine months of 2020 combined with customer inventory rebalancing, which began in mid-2019, and continued through most of the first half of 2020. The lower year-to-date net sales in vehicle electrification market in our PES operating segment was due to the COVID-19 impacts on the automotive sector in the first half of 2020, partially offset by the initial recovery in the third quarter of 2020.

In our ACS operating segment, we anticipate lower net sales in the 4G and 5G wireless infrastructure markets year-over-year in the fourth quarter of 2020, on both a quarter-to-date and year-to-date basis, while we anticipate higher net sales in the aerospace and defense market year-over-year on a quarter-to-date and year-to-date basis. On a sequential quarter basis, we anticipate lower net sales in the 4G and 5G wireless infrastructure and aerospace and defense markets, while we anticipate higher net sales in the automotive market. The effects of trade tensions, increased competition, lower 5G base station content and the ongoing decline in 4G deployments are creating a great deal of uncertainty around our outlook for wireless infrastructure. As a result, we believe the growth opportunity in wireless infrastructure is substantially reduced going forward. Our expectations of net sales in the aerospace and defense market are primarily due to the alignment of the advanced weaponry requirements with the technical capabilities of our products, partially offset by unfavorable impacts of defense program timing. Our expectations of net sales in the automotive market are primarily due to the anticipation of further recovery of the automotive sector from the impact of the COVID-19 pandemic in the second quarter of 2020.

In our EMS operating segment, we anticipate higher net sales in the EV/HEV and portable electronics markets year-over-year in the fourth quarter of 2020, on a quarter-to-date basis, and we anticipate higher net sales in the EV/HEV market, year-over-year, on a year-to-date basis, while we anticipate lower net sales in the general industrial market year-over-year, on both a quarter-to-date and year-to-date basis. On a sequential quarter basis, we anticipate lower net sales in the EV/HEV and portable electronics market in the fourth quarter of 2020. Our expectations of net sales in the EV/HEV market are primarily due to continued strong demand partially offset by unfavorable variations of ordering patterns. Our expectations of net sales in the portable electronics market are primarily due to an extension of the normal seasonality from the third quarter into the fourth quarter as a result of the COVID-19 pandemic. Our expectations of net sales in the general industrial market are primarily due to impact of the COVID-19 pandemic.

In our PES operating segment, we anticipate higher net sales in the EV/HEV market year-over-year in the fourth quarter of 2020, on both a quarter-to-date and year-to-date basis, while we anticipate lower net sales in the variable frequency drives market year-over-year, on both a quarter-to-date and year-to-date basis. On a sequential quarter basis, we anticipate higher net sales in the EV/HEV market in the fourth quarter of 2020, while we anticipate lower net sales in the variable frequency drives market. Our expectations of net sales in the EV/HEV market in the fourth quarter of 2020 are primarily due to the anticipation of further recovery of the automotive sector from the impact of the COVID-19 pandemic in the second quarter of 2020. Our expectations of the net sales in the variable frequency drives market are primarily due to the anticipated continued effects of the COVID-19 pandemic.

Gross margin as a percentage of net sales increased approximately 180 basis points to 37.4% in the third quarter of 2020 compared to 35.6% in the third quarter of 2019. Gross margin in the third quarter of 2020 was favorably impacted by lower freight, duties and tariffs costs in our ACS operating segment, favorable product mix in our EMS operating segment, lower fixed overhead costs and yield improvements in our ACS, EMS and PES operating segments, as well as higher volume, favorable productivity performance and favorable absorption of fixed overhead costs in our PES operating segment. This was partially offset by lower volume and unfavorable absorption of fixed overhead costs in our ACS and EMS operating segments, unfavorable product mix in our ACS and PES operating segments and an increase in inventory reserve provision in our ACS operating segment.

Gross margin as a percentage of net sales increased approximately 20 basis points to 35.7% in the first nine months of 2020 compared to 35.5% in the first nine months of 2019. Gross margin in the first nine months of 2020 was favorably impacted by lower freight, duties and tariffs costs, lower fixed overhead costs and yield improvements in our ACS, EMS and PES operating segments, including the recognition of a $3.3 million expected recovery of previous duty taxes paid due to a change in Chinese tariff regulations in our ACS operating segment, favorable product mix in our EMS operating segment, as well as favorable productivity performance in our PES operating segment. This was partially offset by lower volume and unfavorable absorption of fixed overhead costs in our ACS, EMS and PES operating segments, an increase in inventory reserve provisions in our ACS and EMS operating segments, as well as unfavorable product mix in our ACS and PES operating segments.

We incurred incremental transaction costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as additional safety supplies. These costs impacted our gross margin by approximately $0.3 million and $3.9 million on a quarter-to-date basis and year-to-date basis, respectively. A substantial portion of the additional benefits under these programs expired in mid-June. We expect

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significantly lower gross margin impacts during the remainder of 2020, associated with the remaining additional benefits, as well as safety supplies, when compared to the first and second quarters of 2020.

Selling, General and Administrative Expenses
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Selling, general and administrative expenses	$	50,230		$	40,448		$	132,254		$	127,349
Percentage of net sales	24.9		%	18.2		%	22.3		%	18.1		%

Selling, general and administrative (SG&A) expenses increased 24.2% in the third quarter of 2020 from the third quarter of 2019, primarily due to an $11.0 million increase in other intangible assets amortization, a $0.6 million increase in professional services a $0.4 million increase in total compensation and benefits and a $0.3 million increase in software costs, partially offset by a $1.1 million decrease in travel and entertainment expenses, a $0.3 million decrease in advertising expenses, a $0.3 million decrease in depreciation, a $0.2 million decrease in commissions expense and a $0.2 million decrease in recruiting/relocation/training expenses.

SG&A expenses increased 3.9% in the first nine months of 2020 from the first nine months of 2019, primarily due to a $13.5 million increase in other intangible assets amortization and a $1.9 million increase in professional services, partially offset by a $3.2 million decrease in travel and entertainment expenses, a $2.0 million decrease in total compensation and benefits, a $1.2 million decrease in advertising expenses, a $1.1 million decrease in depreciation, a $0.9 million decrease in commissions expense, a $0.8 million decrease in recruiting/relocation/training expenses, a $0.5 million decrease in environmental charges and a $0.3 million decrease in software costs.

The increase in amortization expense for the three and nine months ended September 30, 2020 was due to the acceleration of amortization expense related to our DSP customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020 due to an adjustment to their remaining useful lives. We recognized an additional $11.7 million of amortization expense in the third quarter of 2020 and $15.6 million in the first nine months of 2020, and will recognize an additional $11.7 million of amortization expense in the fourth quarter of 2020. The increases in amortization expense in 2020 are offset by decreases in forecasted amortization expense in future years. For additional information, refer to “Note 6 – Goodwill and Other Intangible Assets” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

The decrease in travel and entertainment and recruiting/relocation/training expenses, on both a quarter-to-date and year-to-date basis, was primarily driven by the impacts of COVID-19.

Research and Development Expenses
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Research and development expenses	$	7,085		$	7,830		$	22,185		$	23,282
Percentage of net sales	3.5		%	3.5		%	3.7		%	3.3		%

R&D expenses decreased 9.5% in the third quarter of 2020 from the third quarter of 2019 due to decreases in laboratory expenses as well as travel and entertainment expenses, partially offset by increases in total compensation and benefits. R&D expenses decreased 4.7% in the first nine months of 2020 from the first nine months of 2019 due to decreases in laboratory expenses as well as travel and entertainment expenses, partially offset by increases in total compensation and benefits.

Restructuring and Impairment Charges and Other Operating (Income) Expense, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Restructuring and impairment charges	$	9,413	$	580	$	9,413	$	2,485
Other operating (income) expense, net	$	(4)	$	124	$	(96)	$	1,075

We incurred restructuring charges associated with our manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations. We recognized $9.0 million of restructuring charges related to these restructuring projects for the three and nine months ended September 30, 2020.

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We incurred restructuring charges associated with the consolidation of our Santa Fe Springs, California operations with the Company’s facilities in Carol Stream, Illinois and Bear, Delaware. We recognized no restructuring charges in the third quarter of 2019. We recognized $0.9 million of restructuring charges related to our facility consolidation in the first nine months of 2019.

We recognized $0.4 million of impairment charges primarily related to certain fixed assets in Belgium, for the three and nine months ended September 30, 2020. We recognized $0.6 million and $1.5 million in impairment charges on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition for the three and nine months ended September 30, 2019, respectively.

We expect to incur between $2.5 million and $4.5 million of restructuring and impairment charges in the fourth quarter of 2020.

With respect to other operating (income) expense, net, we recognized income of $0.1 million from economic incentive grants related to the physical relocation of our global headquarters from Rogers, Connecticut to Chandler, Arizona, for the nine months ended September 30, 2020. In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018, we recognized lease income of $0.1 million and $0.9 million for the three and nine months ended September 30, 2019, respectively, and related depreciation on leased assets of $0.2 million and $1.7 million, respectively, for the three and nine months ended September 30, 2019.

Equity Income in Unconsolidated Joint Ventures
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Equity income in unconsolidated joint ventures	$	937	$	1,498	$	3,177	$	4,077

As of September 30, 2020, we had two unconsolidated joint ventures, each 50% owned: Rogers INOAC Corporation (RIC) and Rogers INOAC Suzhou Corporation (RIS). Equity income in those unconsolidated joint ventures decreased 37.4% in the third quarter of 2020 from the third quarter of 2019, and decreased 22.1% in the first nine months of 2020 from the first nine months of 2019. On a quarter-to-date basis, the decrease was due to lower net sales due to the COVID-19 pandemic, as well as declines in operational performance for both RIS and RIC. On a year-to-date basis, the decrease was due to lower net sales due to the COVID-19 pandemic and declines in operational performance for both RIS and RIC.

Pension Settlement Charges and Other (Expense) Income, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Pension settlement charges	$	—	$	—	$	(55)	$	—
Other income (expense), net	$	1,446	$	(918)	$	1,294	$	(915)

In the second quarter of 2020, we recorded an immaterial pre-tax settlement charge in connection with the remaining settlement efforts for the termination of the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)). For additional information, refer to “Note 11 – Pension Benefits and Other Postretirement Benefits.”

Other (expense) income, net increased to income of $1.4 million in the third quarter of 2020 from expense of $0.9 million in the third quarter of 2019. On a quarter-to-date basis, the increase was due to favorable impacts from our copper derivative contracts and foreign currency transactions, partially offset by unfavorable impacts from our foreign currency derivative contracts and by lower net periodic benefit credits associated with our defined benefit plans.

Other (expense) income, net increased to income of $1.3 million in the first nine months of 2020 from expense of $0.9 million in the first nine months of 2019. On a year-to-date basis, the increase was due to favorable impacts from our copper derivative contracts and foreign currency transactions, partially offset by unfavorable impacts from our foreign currency derivative contracts and by lower net periodic benefit credits associated with our defined benefit plans.

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Interest Expense, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest expense, net	$	(3,553)	$	(1,747)	$	(6,539)	$	(5,723)

Interest expense, net, increased by 103.4% in the third quarter of 2020 from the third quarter of 2019, and increased by 14.3% in the first nine months of 2020 from the first nine months of 2019. The increase, on both a quarter-to-date and year-to-date basis, was primarily due to the $2.4 million acceleration of interest expense as a result of the unwinding of the interest rate swap on September 30, 2020. The increase on both a quarter-to-date and year-to-date basis, was partially offset by lower interest expense on borrowings under our revolving credit facility, which was mainly attributable to a lower weighted-average interest rate year-over-year. We expect interest expense, net to decrease on a quarter-to-date basis in the fourth quarter of 2020 from the fourth quarter of 2019 due to an anticipated lower weighted-average interest rate on and an anticipated lower weighted-average outstanding balance for our borrowings under our revolving credit facility. We expect interest expense, net to increase on a year-to-date basis in the fourth quarter of 2020 from the fourth quarter of 2019 due to the $2.4 million acceleration of interest expense as a result of the unwinding of the interest rate swap, partially offset by an anticipated lower weighted-average interest rate on and an anticipated lower weighted-average outstanding balance for our borrowings under our revolving credit facility.

Income Taxes
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Income tax expense	$	618		$	5,331		$	10,453		$	17,258
Effective tax rate	8.1		%	18.6		%	23.1		%	18.5		%

Our effective income tax rate was 8.1% and 18.6% for the three months ended September 30, 2020 and 2019, respectively. The decrease from the third quarter of 2019 was primarily due to the beneficial impact of changes in valuation allowance related to R&D credits, partially offset by the increase in current quarter accruals of reserves for uncertain tax positions, higher tax impact on unremitted foreign earnings and profits, and changes in pretax mix across jurisdictions with disparate tax rates. Our effective income tax rate was 23.1% and 18.5% for the nine months ended September 30, 2020 and 2019, respectively. The increase from the first nine months of 2019 was primarily due to the increase in current quarter accruals of reserves for uncertain tax positions, the decrease in excess tax deductions on stock-based compensation and higher tax impact on unremitted foreign earnings and profits, partially offset by the beneficial impact of changes in valuation allowance related to R&D credits and pretax mix across jurisdictions with disparate tax rates.

Operating Segment Net Sales and Operating Income

Advanced Connectivity Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	$	63,714	$	78,983	$	199,207	$	251,982
Operating income	$	4,981	$	13,778	$	26,067	$	45,301

ACS net sales decreased by 19.3% in the third quarter of 2020 compared to the third quarter of 2019. The decrease in net sales over the third quarter of 2019 was primarily driven by significantly lower net sales in the 4G and 5G wireless infrastructure markets, as well as the automotive market, partially offset by higher net sales in the aerospace and defense market. Net sales were not materially impacted by changes in foreign currencies.

ACS net sales decreased by 20.9% in the first nine months of 2020 compared to the first nine months of 2019. The decrease in net sales over the first nine months of 2019 was primarily driven by significantly lower net sales in the 4G and 5G wireless infrastructure markets, as well as the automotive market, partially offset by higher net sales in the aerospace and defense market. Net sales were unfavorably impacted by $1.7 million, or 0.7%, due to the depreciation in value of the Chinese renminbi relative to the U.S. dollar.

The lower net sales in the 4G and 5G wireless infrastructure markets in our ACS operating segment reflected the waning of 4G infrastructure spending by telecommunications companies in anticipation of 5G, as well as the impacts of the trade restrictions on Huawei, increased competition and design changes by telecommunications equipment original equipment manufacturers (OEMs), which reduced our materials content in 5G base stations. The lower net sales in the automotive market was largely due to the impacts of COVID-19 pandemic.

In our ACS operating segment, we anticipate lower net sales in the 4G and 5G wireless infrastructure markets year-over-year in the fourth quarter of 2020, on both a quarter-to-date and year-to-date basis, while we anticipate higher net sales in the aerospace and defense market year-over-year on a quarter-to-date and year-to-date basis. On a sequential quarter basis, we anticipate

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lower net sales in the 4G and 5G wireless infrastructure and aerospace and defense markets, while we anticipate higher net sales in the automotive market. The effects of trade tensions, increased competition, lower 5G base station content and the ongoing decline in 4G deployments are creating a great deal of uncertainty around our outlook for wireless infrastructure. As a result, we believe the growth opportunity in wireless infrastructure is substantially reduced going forward. Our expectations of net sales in the aerospace and defense market are primarily due to the alignment of the advanced weaponry requirements with the technical capabilities of our products, partially offset by unfavorable impacts of defense program timing. Our expectations of net sales in the automotive market are primarily due to the anticipation of further recovery of the automotive sector from the impact of the COVID-19 pandemic in the second quarter of 2020.

Operating income decreased by 63.8% in the third quarter of 2020 from the third quarter of 2019. As a percentage of net sales, operating income in the third quarter of 2020 was 7.8%, an approximately 960 basis point decrease as compared to the 17.4% reported in the third quarter of 2019. The decrease in operating income was primarily due to lower volume and unfavorable absorption of fixed overhead costs, unfavorable product mix and an increase in inventory reserve provision, partially offset by lower freight, duties and tariffs costs, lower fixed overhead costs and yield improvements. Additionally, our ACS operating segment incurred $2.9 million of restructuring and impairment charges in the third quarter of 2020.

Operating income decreased by 42.5% in the first nine months of 2020 from the first nine months of 2019. As a percentage of net sales, operating income in the first nine months of 2020 was 13.1%, an approximately 490 basis point decrease as compared to the 18.0% reported in the first nine months of 2019. The decrease in operating income was primarily due to lower volume, unfavorable absorption of fixed overhead costs and unfavorable product mix, partially offset by lower freight, duties and tariffs costs, including the recognition of a $3.3 million expected recovery of previous duty taxes paid due to a change in Chinese tariff regulations, yield improvements and lower fixed overhead costs. Additionally, our ACS operating segment incurred $2.9 million of restructuring and impairment charges in the first nine months of 2020.

The incremental direct costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as the additional safety supplies, impacted ACS operating income by approximately $0.2 million and $1.7 million on a quarter-to-date basis and year-to-date basis, respectively.

Elastomeric Material Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	$	86,444	$	94,940	$	241,596	$	281,596
Operating income	$	7,372	$	17,995	$	21,884	$	46,752

EMS net sales decreased by 8.9% in the third quarter of 2020 compared to the third quarter of 2019. The decrease in net sales over the third quarter of 2019 was primarily driven by lower net sales in the general industrial, mass transit, automotive and consumer markets, partially offset by higher net sales in the portable electronics and EV/HEV markets. Net sales were not materially impacted by changes in foreign currencies.

EMS net sales decreased by 14.2% in the first nine months of 2020 compared to the first nine months of 2019. The decrease in net sales over the first nine months of 2019 was primarily driven by lower net sales in the general industrial, mass transit, consumer, portable electronics and automotive markets, partially offset by higher net sales in the EV/HEV market. Net sales were unfavorably impacted by $1.9 million, or 0.7%, due to the depreciation in value of the Chinese renminbi, Korean won and euro relative to the U.S. dollar.

In our EMS operating segment, we anticipate higher net sales in the EV/HEV and portable electronics markets year-over-year in the fourth quarter of 2020, on a quarter-to-date basis, and we anticipate higher net sales in the EV/HEV market, year-over-year, on a year-to-date basis, while we anticipate lower net sales in the general industrial market year-over-year, on both a quarter-to-date and year-to-date basis. On a sequential quarter basis, we anticipate lower net sales in the EV/HEV and portable electronics market in the fourth quarter of 2020. Our expectations of net sales in the EV/HEV market are primarily due to continued strong demand partially offset by unfavorable variations of ordering patterns. Our expectations of net sales in the portable electronics market are primarily due to an extension of the normal seasonality from the third quarter into the fourth quarter as a result of the COVID-19 pandemic. Our expectations of net sales in the general industrial market are primarily due to impact of the COVID-19 pandemic.

Operating income decreased by 59.0% in the third quarter of 2020 from the third quarter of 2019. As a percentage of net sales, third quarter of 2020 operating income was 8.5%, an approximately 1,050 basis point decrease as compared to the 19.0% reported in the third quarter of 2019. As a result of the acceleration of amortization expense related to the DSP customer relationships and trademarks and trade names definite-lived other intangible assets, we recognized an additional $11.7 million of amortization expense in the third quarter of 2020. The decrease in operating income was also due to lower volume and unfavorable absorption of fixed overhead costs. This was partially offset by favorable product mix, lower fixed overhead costs and yield improvements.

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Operating income decreased by 53.2% in the first nine months of 2020 from the first nine months of 2019. As a percentage of net sales, operating income in the first nine months of 2020 was 9.1%, an approximately 750 basis point decrease as compared to the 16.6% reported in the first nine months of 2019. As a result of the acceleration of amortization expense related to the DSP customer relationships and trademarks and trade names definite-lived other intangible assets, we recognized an additional $15.6 million of amortization expense in the first nine months of 2020. The decrease in operating income was also due to lower volume, unfavorable absorption of fixed overhead costs and an increase in inventory reserve provision, partially offset by favorable product mix, lower fixed overhead costs and lower freight, duties and tariffs costs.

The incremental direct costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as the additional safety supplies, impacted EMS operating income by approximately $0.1 million and $1.6 million on a quarter-to-date basis and year-to-date basis, respectively.

The increase in amortization expense for the three and nine months ended September 30, 2020 was due to the acceleration of amortization expense related to our DSP customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020 due to an adjustment to their remaining useful lives. We recognized an additional $11.7 million of amortization expense in the third quarter of 2020 and $15.6 million in the first nine months of 2020, and will recognize an additional $11.7 million of amortization expense in the fourth quarter of 2020. The increases in amortization expense in 2020 are offset by decreases in forecasted amortization expense in future years. For additional information, refer to “Note 6 – Goodwill and Other Intangible Assets” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Power Electronics Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	$	47,927	$	43,131	$	139,868	$	154,607
Operating loss	$	(4,691)	$	(3,358)	$	(3,929)	$	(976)

PES net sales increased by 11.1% in the third quarter of 2020 from the third quarter of 2019. The increase in net sales over the third quarter of 2019 was primarily driven by higher net sales in the EV/HEV and renewable energy markets, partially offset by lower net sales in the mass transit and variable frequency drives markets. Net sales were favorably impacted by foreign currency fluctuations of $0.9 million, or 2.0%, due to the depreciation in value of the euro relative to the U.S. dollar.

PES net sales decreased by 9.5% in the first nine months of 2020 from the first nine months of 2019. The decrease in net sales over the first nine months of 2019 was primarily driven by lower net sales in the mass transit, variable frequency drives and vehicle electrification markets, partially offset by higher net sales in the EV/HEV and renewable energy markets. Net sales were unfavorably impacted by foreign currency fluctuations of $1.2 million, or 0.8%, due to the depreciation in value of the euro and Chinese renminbi relative to the U.S. dollar.

The lower net sales in variable frequency drives market in our PES operating segment was due to a slowdown in industrial automation demand through the first nine months of 2020 combined with customer inventory rebalancing, which began in mid-2019, and continued through most of the first half of 2020. The lower year-to-date net sales in vehicle electrification market in our PES operating segment was due to the COVID-19 impacts on the automotive sector in the first half of 2020, partially offset by the initial recovery in the third quarter of 2020.

In our PES operating segment, we anticipate higher net sales in the EV/HEV market year-over-year in the fourth quarter of 2020, on both a quarter-to-date and year-to-date basis, while we anticipate lower net sales in the variable frequency drives market year-over-year, on both a quarter-to-date and year-to-date basis. On a sequential quarter basis, we anticipate higher net sales in the EV/HEV market in the fourth quarter of 2020, while we anticipate lower net sales in the variable frequency drives market. Our expectations of net sales in the EV/HEV market in the fourth quarter of 2020 are primarily due to the anticipation of further recovery of the automotive sector from the impact of the COVID-19 pandemic in the second quarter of 2020. Our expectations of the net sales in the variable frequency drives market are primarily due to the anticipated continued effects of the COVID-19 pandemic.

Operating loss increased by 39.7% in the third quarter of 2020 from the third quarter of 2019. As a percentage of net sales, the third quarter of 2020 operating loss was 9.8% as compared to the 7.8% for operating loss reported in the third quarter of 2019. The increase in operating loss was primarily due to $6.3 million of restructuring and impairment charges incurred in the third quarter of 2020, in addition to unfavorable product mix, partially offset by higher volume, lower fixed overhead costs, favorable productivity performance, yield improvements and favorable absorption of fixed overhead costs.

Operating loss increased by 302.6% in the first nine months of 2020 from the first nine months of 2019. As a percentage of net sales, the first nine months of 2020 operating loss was 2.8% as compared to the 0.6% for operating loss reported in the first nine months of 2019. The increase in operating loss was primarily due to $6.3 million of restructuring and impairment charges

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incurred in the first nine months of 2020, in addition to lower volume, unfavorable product mix and unfavorable absorption of fixed overhead costs, partially offset by favorable productivity performance, yield improvements, lower fixed overhead costs and lower freight costs.

The incremental transaction costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as the additional safety supplies, did not materially impact PES operating loss on a quarter-to-date basis and impacted PES operating loss by approximately $0.8 million on a year-to-date basis.

Other

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	$	3,859	$	4,788	$	11,240	$	16,307
Operating income	$	1,132	$	1,470	$	3,339	$	4,821

Net sales in this segment decreased by 19.4% in the third quarter of 2020 from the third quarter of 2019. The decrease in net sales over the third quarter of 2019 was primarily driven by lower demand in the automotive market partially resulting from the COVID-19 pandemic. Net sales were not materially impacted by changes in foreign currencies.

Net sales in this segment decreased by 31.1% in the first nine months of 2020 from the first nine months of 2019. The decrease in net sales over the first nine months of 2019 was primarily driven by a non-recurring last time buy in the Durel business in the first quarter of 2019, as well as lower demand in the automotive market partially resulting from the COVID-19 pandemic. Net sales were unfavorably impacted by foreign currency fluctuations of $0.1 million, or 0.7%, due to the depreciation in value of the Chinese renminbi relative to the U.S. dollar.

Operating income decreased 23.0% in the third quarter of 2020 compared to the third quarter of 2019. The decrease in operating income was primarily driven by lower volume and unfavorable absorption of fixed overhead costs, partially offset by lower fixed overhead costs. As a percentage of net sales, third quarter of 2020 operating income was 29.3%, a 140 basis point decrease as compared to the 30.7% reported in the third quarter of 2019.

Operating income decreased 30.7% in the first nine months of 2020 compared to the first nine months of 2019. The decrease in operating income was primarily driven by lower volume and unfavorable absorption of fixed overhead costs, partially offset by lower fixed overhead costs. As a percentage of net sales, the first nine months of 2020 operating income was 29.7%, a 10 basis point increase as compared to the 29.6% reported in the first nine months of 2019.

Liquidity, Capital Resources and Financial Position

We believe that our existing sources of liquidity and cash flows that we expect to generate from our operations, together with our available credit facilities, will be sufficient to fund our operations, currently planned capital expenditures, research and development efforts and our debt service commitments, for at least the next 12 months. We regularly review and evaluate the adequacy of our cash flows, borrowing facilities and banking relationships in an effort to ensure that we have the appropriate access to cash to fund both our near-term operating needs and our long-term strategic initiatives.

The following table illustrates the location of our cash and cash equivalents by our three major geographic areas:

(Dollars in thousands)	September 30, 2020		December 31, 2019
United States	$	43,143	$	39,354
Europe	46,560		31,166
Asia	96,420		96,329
Total cash and cash equivalents	$	186,123	$	166,849

Approximately $143.0 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of September 30, 2020. We did not make any changes in the nine months ended September 30, 2020 to our position on the permanent reinvestment of our earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, where a substantial portion of our Asia cash and cash equivalents are held, we continue to assert that historical foreign earnings are indefinitely reinvested.

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(Dollars in thousands)	September 30, 2020		December 31, 2019
Key Financial Position Accounts:
Cash and cash equivalents	$	186,123	$	166,849
Accounts receivable, net	$	138,611	$	122,285
Inventories	$	109,733	$	132,859
Borrowings under revolving credit facility	$	60,000	$	123,000

Changes in key financial position accounts and other significant changes in our statements of financial position from December 31, 2019 to September 30, 2020 were as follows:

•Accounts receivable, net increased 13.4% to $138.6 million as of September 30, 2020, from $122.3 million as of December 31, 2019. The increase from year-end was primarily due to higher net sales at the end of the third quarter of 2020 compared to at the end of 2019, as well as an increase to our days sales outstanding and an increase in our income taxes receivable.

•Inventories decreased 17.4% to $109.7 million as of September 30, 2020, from $132.9 million as of December 31, 2019, primarily driven by a decline in inventory levels to align with our lower net sales volumes, as well as an increase in inventory reserve provision within the EMS operating segment and a reduction of capitalized variances associated with the timing of volumes produced versus sold relative to the end of 2019.

•Borrowings under revolving credit facility decreased 51.2% to $60.0 million as of September 30, 2020, from $123.0 million as of December 31, 2019. This was as a result of $213.0 million of discretionary principal payments on our revolving credit facility during the second and third quarters of 2020, partially offset by $150.0 million in borrowings under our revolving credit facility during the first quarter of 2020 as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic. For additional information regarding this facility and the Third Amended Credit Agreement and the Fourth Amended Credit Agreement, refer to “Note 9 – Debt” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

	Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019
Key Cash Flow Measures:
Net cash provided by operating activities	$	113,673	$	115,672
Net cash used in investing activities	$	(28,944)	$	(36,193)
Net cash provided by (used in) financing activities	$	(67,033)	$	(104,010)

As of September 30, 2020, cash and cash equivalents were $186.1 million as compared to $166.8 million as of December 31, 2019, an increase of $19.3 million, or 11.6%. This increase was primarily due to the $150.0 million in borrowings under our revolving credit facility during the first quarter of 2020, supplemented by cash flows generated by operations. This increase was partially offset by $213.0 million of discretionary principal payments on our revolving credit facility during the second and third quarters of 2020, $28.9 million in capital expenditures and $5.1 million in tax payments related to net share settlement of equity awards.

Restrictions on Payment of Dividends

The Third Amended Credit Agreement generally permits us to pay cash dividends to our shareholders, provided that (i) no default or event of default has occurred and is continuing or would result from the dividend payment and (ii) our leverage ratio does not exceed 2.75 to 1.00. If our leverage ratio exceeds 2.75 to 1.00, we may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during the fiscal year, provided that no default or event of default has occurred and is continuing or would result from the payments. Our leverage ratio did not exceed 2.75 to 1.00 as of September 30, 2020.

The Fourth 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 total net leverage ratio does not exceed 2.75 to 1.00. If our total net leverage ratio exceeds 2.75 to 1.00, we may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during each fiscal year, provided that no default or event of default has occurred and is continuing or would result from the payments. Our total net leverage ratio did not exceed 2.75 to 1.00 as of October 16, 2020.

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Contingencies

During the third quarter of 2020, we did not become aware of any material developments related to environmental matters disclosed in our Annual Report, our asbestos litigation or other material contingencies previously disclosed or incur any material costs or capital expenditures related to such matters. Refer to “Note 12 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for further discussion of these contingencies.

Off-Balance Sheet Arrangements

As of September 30, 2020, we did not have any off-balance sheet arrangements that have or are, in the opinion of management, reasonably likely to have a current or future material effect on our results of operations or financial position.

Critical Accounting Policies

There were no material changes in our critical accounting policies during the third quarter of 2020.

Recent Accounting Pronouncements

Refer to “Note 16 – Recent Accounting Standards” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for discussion of recent accounting pronouncements including expected dates of adoption.

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Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our exposure to market risk during the third quarter of 2020. For discussion of our exposure to market risk, refer to “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” contained in our Annual Report.

Item 4.    Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d- 15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act), as of September 30, 2020. The Company’s disclosure controls and procedures are designed (i) to ensure that information required to be disclosed by it in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) to ensure that information required to be disclosed in the reports the Company files or submits under the Exchange Act is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2020.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company’s internal control over financial reporting during its most recently completed fiscal quarter that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act.

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Part II - Other Information

Item 1.    Legal Proceedings

Refer to the discussion of certain environmental, asbestos and other litigation matters in “Note 12 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Item 1A. Risk Factors

The COVID-19 pandemic and global responsive measures have impacted our business and results of operations and could materially adversely affect our business, results of operations and financial position in future periods.

The COVID-19 pandemic has now spread globally and resulted in governmental authorities implementing numerous responsive measures, such as travel bans and other restrictions, including quarantines, shelter-in-place and stay-home orders, transportation disruptions, closures and shutdowns. We maintain significant manufacturing and administrative operations in the U.S., China, Belgium, Germany, South Korea and Hungary, and each of these countries has been significantly affected by the outbreak and taken measures to try to contain it. We have also modified our business practices in an effort to ensure business continuity while promoting continued employee health and well-being. Collectively, these measures have impacted and are likely to continue to impact our workforce and operations. In addition, the outbreak and associated responsive measures have resulted in significant disruption of the global economy, leading to steep declines and increased volatility in the financial markets, and it is possible that a potentially severe global recession will follow.

There is considerable uncertainty regarding the effect of COVID-19 as well as current and future responsive measures on our business, including on our workforce and operations. We may experience sustained demand reductions for our products in certain end markets, be unable to satisfy customer demand and face increased operating costs, asset impairments and cash flow reductions, all of which could have a material adverse effect on our business, results of operations and financial position.

Item 6.    Exhibits

List of Exhibits:
3.1	Restated Articles of Organization of Rogers Corporation, as amended, incorporated by reference to Exhibit 3a to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006.
3.2	Amended and Restated Bylaws of Rogers Corporation, effective February 11, 2016, incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on February 26, 2016.
10.1	Fourth Amended and Restated Credit Agreement dated as of October 16, 2020, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 16, 2020.
31.1	Certification of President and Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2	Certification of Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32	Certification of President and Chief Executive Officer (Principal Executive Officer) and Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
99.1	Rogers Corporation Employee Stock Purchase Plan, as amended and restated on October 7, 2020 (formerly known as the Rogers Corporation Global Stock Ownership Plan for Employees).
101	The following materials from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020 formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and September 30, 2019, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2020 and September 30, 2019, (iii) Condensed Consolidated Statements of Financial Position as of September 30, 2020 and December 31, 2019, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and September 30, 2019, (v) Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2020 and September 30, 2019, (vi) Notes to Condensed Consolidated Financial Statements and (vii) Cover Page.
104	The cover page from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020, formatted in iXBRL and contained in Exhibit 101.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ROGERS CORPORATION
(Registrant)

/s/ Michael M. Ludwig

Michael M. Ludwig

Senior Vice President, Chief Financial Officer and Treasurer
Principal Financial Officer

Dated: October 30, 2020

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EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Bruce D. Hoechner, certify that:

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 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 the 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: October 30, 2020

/s/ Bruce D. Hoechner

Bruce D. Hoechner

President and Chief Executive Officer
Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Michael M. Ludwig, certify that:

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 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 the 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: October 30, 2020

/s/ Michael M. Ludwig

Michael M. Ludwig

Senior Vice President, Chief Financial Officer and Treasurer
Principal Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Rogers Corporation, a Massachusetts corporation (the “Corporation”), does hereby certify that:

The Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020 (the “Form 10-Q”) of the Corporation fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ Bruce D. Hoechner

Bruce D. Hoechner

President and Chief Executive Officer
Principal Executive Officer

October 30, 2020

/s/ Michael M. Ludwig

Michael M. Ludwig

Senior Vice President, Chief Financial Officer and Treasurer Principal Financial Officer

October 30, 2020

EX-99.1

Rogers Corporation Employee Stock Purchase Plan

1.  Purpose. This Rogers Corporation Employee Stock Purchase Plan (the “Plan”) is an amended and restated continuation of the Rogers Corporation Global Stock Ownership Plan for Employees, which was originally adopted by the Board on February 15, 2001 and approved by the Company’s shareholders on April 26, 2001, and is not the adoption of a new plan for purposes of Treas. Reg. §1.423-2(c). The Plan is intended to provide eligible employees of the Company and its Participating Subsidiaries with an opportunity to acquire a proprietary interest in the Company through the purchase of shares of Common Stock. The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code and the Plan shall be interpreted in a manner that is consistent with that intent.

The Committee may also adopt sub-plans applicable to one or more Participating Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Section 423 of the Code. Any such sub-plan shall not apply to employees who are located in the United States or its possessions or are otherwise subject to United States income tax. Unless otherwise superseded by the specific provisions of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan.

2.  Definitions.

“Administrator” means the Committee or such person(s) appointed by the Committee for the purpose of administration of the Plan.

“Board” or “Board of Directors” means the Board of Directors of the Company, as constituted from time to time.

“Code” means the U.S. Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

“Committee” means the Compensation and Organization Committee of the Board.

“Common Stock” means the common stock of the Company, par value $1.00 per share.

“Company” means Rogers Corporation, a Massachusetts corporation, including any successor thereto.

“Compensation” means, except as otherwise determined by the Administrator prior to the beginning of the applicable Offering Period, base salary and wages paid to an Eligible Employee by the Company or a Participating Subsidiary as compensation for services to the Company or Participating Subsidiary, before deduction for any salary deferral contributions made by the Eligible Employee to any tax-qualified or nonqualified deferred compensation plan, including overtime, vacation pay, holiday pay, jury duty pay and funeral leave pay, but excluding bonuses, commissions, education or tuition reimbursements, imputed income

arising under any group insurance or benefit program, travel expenses, business and relocation expenses, and income received in connection with stock options or other equity-based awards.

“Corporate Transaction” means a merger or consolidation of the Company, or the acquisition of all or substantially all of the property or stock of the Company.

 ‌

“EligibleEmployee” means any person who renders services to the Company or a Participating Subsidiary as an employee pursuant to an employment relationship with such employer. For purposes of the Plan, in accordance with Treas. Reg. §1.421-1(h)(2), the employment relationship shall be treated as continuing intact while the individual is on military leave, sick leave or other leave of absence approved by the Company or a Participating Subsidiary that does not exceed three months and during any period longer than three months if his or her right to reemployment is guaranteed by statute or contract.  

 ‌

“Enrollment Form” means an agreement, which may be electronic, pursuant to which an Eligible Employee may elect to enroll in the Plan, to authorize a new level of payroll deductions, or to stop payroll deductions and withdraw from an Offering Period.

“ESPP Share Account” means an account into which Common Stock purchased with accumulated payroll deductions at the end of an Offering Period are held on behalf of a Participant.

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

“Fair Market Value” means, as of any date, the value of the shares of Common Stock as determined below. If the shares are listed on any established stock exchange or a national market system, including, without limitation, the New York Stock Exchange or the NASDAQ Stock Market, the Fair Market Value shall be the closing price of a share (or if no sales were reported, the closing price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal. In the absence of an established market for the shares, the Fair Market Value shall be determined in good faith by the Administrator and such determination shall be conclusive and binding on all persons.

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“Offering Date” means the first Trading Day of each Offering Period, unless otherwise designated by the Administrator.

“Offering” or “Offering Period” means a period of six (6) months beginning on or about January 1^st and July 1st of each year; provided, that, pursuant to Section 5, the Administrator may change the duration of future Offering Periods (subject to a maximum Offering Period of twenty-seven (27) months) and/or the start and end dates of future Offering Periods.

 ‌

“Parent” means a “parent corporation” with respect to the Company, as defined in Section 424(e) of the Code.

2

“Participant” means an Eligible Employee who is actively participating in the Plan.

“Participating Subsidiaries” means the Subsidiaries that have been designated by the Committee as eligible to participate in the Plan, and such other Subsidiaries that may be designated by the Committee as eligible to participate in the Plan from time to time in its sole discretion.

 ‌

“Plan” means this Rogers Corporation Employee Stock Purchase Plan, as set forth herein, and as amended from time to time.

“Purchase Date” means the last Trading Day of each Offering Period, unless otherwise designated by the Administrator.

 ‌

“Purchase Price” means an amount equal to the lesser of (i) eighty-five percent (85%) (or such higher percentage up to 100% as the Administrator may determine prior to the beginning of the applicable Offering Period) of the Fair Market Value of a share of Common Stock on the Offering Date or (ii) eighty-five percent (85%) (or such higher percentage up to 100% as the Administrator may determine prior to the beginning of the applicable Offering Period) of the Fair Market Value of a share of Common Stock on the Purchase Date; provided, that, the Purchase Price per share of Common Stock will in no event be less than the par value of the Common Stock.

“Securities Act” means the Securities Act of 1933, as amended.

“Subsidiary” means any corporation, domestic or foreign, of which not less than 50% of the combined voting power is held by the Company or a Subsidiary, whether or not such corporation exists now or is hereafter organized or acquired by the Company or a Subsidiary. In all cases, the determination of whether an entity is a Subsidiary shall be made in accordance with Section 424(f) of the Code.

“Trading Day” means any day on which the national stock exchange upon which the Common Stock is listed is open for trading or, if the Common Stock is not listed on an established stock exchange or national market system, a business day, as determined by the Administrator in good faith.

3.  Administration. The Plan shall be administered by the Administrator, which shall have the authority to construe and interpret the Plan, prescribe, amend and rescind rules relating to the Plan’s administration and take any other actions necessary or desirable for the administration of the Plan including, without limitation, adopting sub-plans applicable to particular Participating Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Section 423 of the Code. The Administrator may correct any defect or supply any omission or reconcile any inconsistency or ambiguity in the Plan. The interpretations and decisions of the Administrator shall be final and binding on all persons. All expenses of administering the Plan shall be borne by the Company.

3

The Committee shall have the authority to allocate and delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities under the Plan, except for those powers specifically reserved herein for the Committee or the Board.

No member of the Board or the Committee or any individual exercising administrative authority with respect to the Plan shall be liable for any action or determination made in good faith with respect to the Plan or any right granted hereunder. To the extent that the Administrator or the Committee is unable or unwilling to exercise any right or make any determination hereunder, such right or such determination shall be exercised by the Committee for the Administrator or by the Board for the Committee or for the Administrator.

4.  Eligibility. Unless otherwise determined by the Administrator in a manner that is consistent with Section 423 of the Code, any individual who is an Eligible Employee of the Company or Participating Subsidiary as of the first day of the enrollment period designated by the Administrator for a particular Offering Period shall be eligible to participate in such Offering Period, subject to the requirements of Section 423 of the Code.

Notwithstanding any provision of the Plan to the contrary, no Eligible Employee shall be granted a right to purchase under the Plan if (i) immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company or hold outstanding rights to purchase stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary or (ii) such offering would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that exceeds $25,000 USD of the Fair Market Value of such stock (determined as of the Offering Date) for each calendar year in which such right to purchase is outstanding and exercisable at any time.

5.  Offering Periods. The Plan shall be implemented by a series of Offering Periods, each of which shall be six (6) months in duration, with new Offering Periods commencing on or about January 1 and July 1 of each year (or such other times as determined by the Administrator). The Administrator shall have the authority to change the duration, frequency, start and end dates of Offering Periods prior to the commencement of such Offering Period.

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6.  Participation.

6.1  Enrollment; Payroll Deductions. An Eligible Employee may elect to participate in the Plan by properly completing an Enrollment Form, and submitting it to the Company, at least ten (10) business days before the Offering Date (or by such other deadline as shall be established by the Administrator for the Offering) and in accordance with the enrollment procedures established by the Administrator. Participation in the Plan is entirely voluntary. By submitting an Enrollment Form, the Eligible Employee authorizes payroll deductions from his or her Compensation in an amount equal to at least 1%, but not more than 15% of his or her Compensation on each payroll date occurring during an Offering Period (or such other minimum or maximum percentage as the Administrator may establish from time to

4

time before an Offering Period begins). Payroll deductions shall commence on the first payroll date following the Offering Date and end on the last payroll date on or before the Purchase Date. The Company shall maintain records of all payroll deductions but shall have no obligation to pay interest on payroll deductions or to hold such amounts in a trust or in any segregated account. Unless expressly permitted by the Administrator, a Participant may not make any separate contributions or payments to the Plan.

6.2  Election Changes. During an Offering Period, a Participant may not elect to decrease or increase his or her rate of payroll deductions applicable to such Offering Period. A Participant may decrease or increase his or her rate of payroll deductions for future Offering Periods by submitting a new Enrollment Form authorizing the new rate of payroll deductions at least ten (10) business days before the start of the next Offering Period (or by such other deadline as shall be established for the Offering).The Administrator may, in advance of any Offering, establish rules permitting an employee to increase, decrease or terminate his or her payroll deductions during an Offering.

6.3 Automatic Re-enrollment. The deduction rate selected in the Enrollment Form shall remain in effect for subsequent Offering Periods unless the Participant (a) submits a new Enrollment Form authorizing a new level of payroll deductions in accordance with Section 6.2, (b) withdraws from the Plan in accordance with Section 10, or (c) terminates employment or otherwise becomes ineligible to participate in the Plan.

6.4 Electronic Submission of Enrollment Form. The Administrator may specify that Enrollment Forms to be submitted to the Company pursuant to this Section 6 or Section 10 below are to be submitted electronically via the Company’s intranet or the Internet site of a third party or via email or any other means of electronic delivery specified by the Administrator.

7.  Purchase Rights. On each Offering Date, each Participant in the applicable Offering Period shall be granted the right to purchase, on the Purchase Date, a number of shares of Common Stock determined by dividing the Participant’s accumulated payroll deductions by the applicable Purchase Price; provided, however, that in no event shall any Participant purchase more than the lesser of (a) the number of whole shares which is less than or equal to $25,000.00 USD multiplied by the number of months in the Offering divided by 12 and divided by the Fair Market Value of the Common Stock on the Offering Date, or (b) such other lesser maximum number of shares as shall have been established by the Administrator in advance of the Offering (subject to adjustment in accordance with Section 17 and the limitations set forth in Section 13 of the Plan).

8.  Purchase of Shares. A Participant’s right to purchase shares of Common Stock will be exercised automatically on the Purchase Date of each Offering Period. The Participant’s accumulated payroll deductions will be used to purchase the maximum number of whole shares that can be purchased with the amounts in the Participant’s notional account, subject to the limitations described in Section 7 above. No fractional shares may be purchased. Any accumulated payroll deductions not used to purchase shares during an Offering Period shall be

5

refunded to the Participant; provided, however, that, unless otherwise determined by the Administrator prior to the applicable Offering, an amount representing a fractional share that was not used to purchase shares during an Offering Period shall be carried over to a subsequent Offering Period.

9.  Transfer and Restriction on Sale.

9.1 Transfer of Shares. As soon as reasonably practicable after each Purchase Date, the Company will arrange for the delivery to each Participant of the shares of Common Stock purchased. Subject to the approval of the Administrator, shares of Common Stock purchased under the Plan may be issued in the form of certificates or held in a brokerage, or other account (or accounts), in any case only in the name of the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or in the name of a broker, bank or similar entity authorized by the employee to be the employee’s, or their, nominee for such purpose. Participants will not have any voting, dividend or other rights of a shareholder with respect to the shares of Common Stock until such shares have been delivered pursuant to this Section 9.

9.2 Insider Trading Policy Restrictions. All transactions under this Plan are subject to the Company’s insider trading policy as may be in effect from time to time. This includes any blackout period prohibition or requirement to obtain mandatory pre-clearance of transactions such as enrollment, withdrawal, or trading. If the standard enrollment period is scheduled to occur during a blackout period, arrangements will be made to allow for restricted insiders to update ESPP elections during the preceding open trading window.

10.  Withdrawal.

10.1  Withdrawal Procedure. A Participant may withdraw from the current Offering Period by submitting to the Company an Enrollment Form indicating his or her election to withdraw at least three (3) business days before the end of such Offering Period. A Participant who withdraws in accordance with the preceding sentence shall be promptly refunded any accumulated payroll deductions held on behalf of such Participant in his or her notional account that have not been used to purchase shares of Common Stock, and such Participant’s right to purchase with respect to the current Offering Period shall be terminated. If a Participant’s Enrollment Form indicating his or her election to withdraw is not submitted at least three (3) business days before the end of the current Offering Period, such Participant will continue to participate in the current Offering Period and such Participant’s withdrawal will be effective with respect to the succeeding Offering Period. If a Participant withdraws from an Offering Period, no payroll deductions will be made during any succeeding Offering Period, unless the Participant re-enrolls in accordance with Section 6.1 of the Plan.

10.2  Effect on Succeeding Offering Periods. A Participant’s election to withdraw from an Offering Period will not have any effect upon his or her eligibility to participate in succeeding Offering Periods that commence following the completion of the Offering Period from which the Participant withdraws.

6

11.  Termination of Employment; Change in Employment Status. Upon termination of a Participant’s employment for any reason, including death, disability or retirement, or a change in the Participant’s employment status following which the Participant is no longer an Eligible Employee, all payroll deductions by the Participant and all rights to purchase shares of Common Stock granted to the Participant with respect to the Offering Period then in effect shall immediately cease. The amount of payroll deductions accumulated in such Participant’s notional account shall be refunded to the Participant as soon as practicable thereafter (or in the case of the Participant’s death, to the Participant’s designated beneficiary, or if no beneficiary has been designated, to the Participant’s estate). For purposes of the Plan, the date of the Participant’s termination of employment shall be the Participant’s last date of actual employment and shall not include any period during which such Participant receives any severance payments. A transfer of employment between the Company and a Participating Subsidiary or between one Participating Subsidiary and another Participating Subsidiary shall not be deemed a termination of employment under this Section 11.

12.  Interest. No interest shall accrue on or be payable with respect to the payroll deductions of a Participant in the Plan.

13.  Shares Reserved for Plan.

13.1  Number of Shares. A total of 500,000 shares of Common Stock have been reserved as authorized for the purchase of shares under the Plan. The shares of Common Stock may be newly issued shares, treasury shares or shares acquired on the open market.

13.2  Over-subscribed Offerings. The number of shares of Common Stock which a Participant may purchase in an Offering under the Plan may be reduced if the Offering is over-subscribed. No purchase rights granted under the Plan shall permit a Participant to purchase shares of Common Stock which, if added together with the total number of shares of Common Stock purchased by all other Participants in such Offering would exceed the total number of shares of Common Stock remaining available under the Plan. If the Administrator determines that, on a particular Purchase Date, the number of shares of Common Stock to be purchased exceeds the number of shares of Common Stock then available under the Plan, the Company shall make a pro rata allocation of the shares of Common Stock remaining available for purchase in as uniform a manner as practicable and as the Administrator determines to be equitable.

14.  Assignability. No payroll deductions credited to a Participant, nor any rights with respect to the right to purchase, or any rights to receive Common Stock hereunder may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 16 hereof) by the Participant. Any attempt to assign, transfer, pledge or otherwise dispose of such rights or amounts shall be without effect.

15.  Application of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose to the extent permitted by

7

applicable law, and the Company shall not be required to segregate such payroll deductions or contributions.

16.  Designation of Beneficiary. A Participant may electronically file a written designation of beneficiary who is to receive any shares of Common Stock from the Participant’s ESPP Share Account under the Plan in the event of such Participant’s death. In addition, a Participant may file a designation of beneficiary who is to receive any accumulated payroll deductions withheld and credited to the Participant’s notional account in the event of the Participant’s death prior to the Purchase Date of an Offering Period in accordance with Section 11 above.

17.  Adjustments Upon Changes in Capitalization; Dissolution or Liquidation; Corporate Transactions.

17.1  Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the Company’s structure affecting the Common Stock occurs, then in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Committee will, in such manner as it deems equitable, adjust the number of shares and class of Common Stock that may be delivered under the Plan, the Purchase Price per share, and the numerical limits of Section 7 and Section 13.

17.2  Dissolution or Liquidation. In the event of a proposed dissolution or liquidation of the Company, the Committee shall, in its discretion, provide for one of the following courses of action: (i) the Offering Period then in effect shall end as of a date selected by the Committee before the consummation of such dissolution or liquidation and each outstanding right to purchase granted under the Plan shall be automatically exercised as of such date, or (ii) the Offering Period then in effect shall be terminated as of a date selected by the Committee before the consummation of such dissolution or liquidation and each outstanding right to purchase granted under the Plan shall be automatically cancelled and any payroll deductions accumulated for such Offering Period shall be refunded to the applicable Participant as soon as administratively practicable.

17.3  Corporate Transaction. In the event of a Corporate Transaction, the Committee shall, in its discretion, provide for one of the following courses of action: (i) each outstanding right to purchase granted under the Plan shall be assumed or an equivalent option shall be substituted by the successor entity (or a parent or subsidiary thereof), (ii) the Offering Period then in effect shall end as of a date selected by the Committee before the consummation of such Corporate Transaction and each outstanding right to purchase granted under the Plan shall be automatically exercised as of such date, or (iii) the Offering Period then in effect shall be terminated as of a date selected by the Committee before the consummation of such Corporate Transaction and each outstanding right to purchase granted under the Plan shall be automatically cancelled and any payroll deductions accumulated for such Offering Period shall be refunded to the applicable Participant as soon as administratively practicable.

8

18.  General Provisions.

18.1  Equal Rights and Privileges. Notwithstanding any provision of the Plan to the contrary and in accordance with Section 423 of the Code, all Eligible Employees participating in the Plan shall have the same rights and privileges; provided, however, that any Eligible Employees outside of the United States may be excluded from participation in the Plan or any sub-plan if such participation is prohibited or made impracticable by local law or would otherwise cause the Plan to fail to meet the requirements of Section 423 of the Code.

The Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures outside of the United States. Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding handling of payroll deductions, payment of interest (if any), conversion of local currency, payroll tax, withholding procedures and handling of stock certificates which vary with local requirements outside of the United States.

18.2  No Right to Continued Service. Neither the Plan nor any compensation paid hereunder will confer on any Participant the right to continue as an employee of the Company or any of its affiliated entities or in any other capacity.

18.3  Rights as Shareholder. A Participant will become a shareholder with respect to the shares of Common Stock that are purchased under the Plan when the shares are transferred to the Participant’s ESPP Share Account. A Participant will have no rights as a shareholder with respect to shares of Common Stock for which an election to participate in an Offering Period has been made until such Participant becomes a shareholder as provided above.

18.4  Successors and Assigns. The Plan shall be binding on the Company and its successors and assigns.

18.5  Entire Plan. This Plan constitutes the entire plan with respect to the subject matter hereof and supersedes all prior plans with respect to the subject matter hereof.

18.6  Compliance with Law. The obligations of the Company with respect to payments under the Plan are subject to compliance with all applicable laws and regulations. Common Stock shall not be issued with respect to a right to purchase unless the issuance and delivery of the shares of Common Stock pursuant thereto shall comply with all applicable provisions of law, including, without limitation, the Securities Act, the Exchange Act, and the requirements of any stock exchange upon which the shares may then be listed.

18.7  Notice of Disqualifying Dispositions. Each Participant shall give the Company prompt written notice of any disposition or other transfer of shares of Common Stock acquired pursuant to the -share purchase acquired under the Plan, if such disposition or transfer is made within two years after the Offering Date or within one year after the Purchase Date.

9

‌

18.8  Amendment or Termination. The Committee may, in its sole discretion, amend or suspend the Plan at any time and for any reason. The Committee will obtain shareholder approval for amendments considered to be the adoption of a new plan under Section 423 of the Code (e.g., any increase in the aggregate number of shares that may be issued under the Plan).

The Board may, in its sole discretion, terminate the Plan at any time and for any reason. If the Plan is terminated, the Board may elect to terminate all outstanding Offering Periods either immediately or once shares of Common Stock have been purchased on the next Purchase Date (which may, in the discretion of the Board, be accelerated) or permit Offering Periods to expire in accordance with their terms (and subject to any adjustment in accordance with Section 17), and all amounts that have not been used to purchase shares of Common Stock during the final Offering Period will be returned to Participants (without interest, except as otherwise required by law) as soon as administratively practicable following the final Purchase Date.

18.9  Applicable Law. The laws of the State of Massachusetts shall govern all questions concerning the construction, validity and interpretation of the Plan, without regard to such state’s conflict of law rules. 

18.10  Section 423. The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code. Any provision of the Plan that is inconsistent with Section 423 of the Code shall be reformed to comply with Section 423 of the Code.

18.11  Withholding. To the extent required by applicable Federal, state or local law, a Participant must make arrangements satisfactory to the Company for the payment of any withholding or similar tax obligations that arise in connection with the Plan. ‌The Company shall not be required to recognize any Participant’s right to purchase granted under the Plan, to issue shares of Common Stock or to recognize the disposition of such shares of Common Stock until such obligations are satisfied. The Participant agrees that, in the Company’s sole discretion, these obligations may be satisfied by the Company withholding cash from any compensation otherwise payable to or for the benefit of a Participant or the Company withholding a portion of the shares of Common Stock that otherwise would be issued to a Participant upon exercise of a right to purchase granted under the Plan.

18.12  Severability. If any provision of the Plan shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and the Plan shall be construed as if such invalid or unenforceable provision were omitted.

18.13  Headings. The headings of sections herein are included solely for convenience and shall not affect the meaning of any of the provisions of the Plan.

18.14 Unfunded Status of Plan. The Plan is unfunded and shall not create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between any Participant

10

(or beneficiary thereof), on the one hand, and the Company, any Participating Subsidiary, the Committee, the Administrator, or any other person, on the other hand.

‌

11

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 26, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	1-4347
Entity Registrant Name	ROGERS CORP
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	06-0513860
Entity Address, Address Line One	2225 W. Chandler Blvd.
Entity Address, City or Town	Chandler
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85224-6155
City Area Code	480
Local Phone Number	917-6000
Title of 12(b) Security	Common Stock,
Entity Trading Symbol	ROG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,675,798
Entity Central Index Key	0000084748
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 201,944	$ 221,842	$ 591,911	$ 704,492
Cost of sales	126,426	142,975	380,794	454,403
Gross margin	75,518	78,867	211,117	250,089
Selling, general and administrative expenses	50,230	40,448	132,254	127,349
Research and development expenses	7,085	7,830	22,185	23,282
Restructuring and impairment charges	9,413	580	9,413	2,485
Other operating (income) expense, net	(4)	124	(96)	1,075
Operating income	8,794	29,885	47,361	95,898
Equity income in unconsolidated joint ventures	937	1,498	3,177	4,077
Pension settlement charges	0	0	(55)	0
Other income (expense), net	1,446	(918)	1,294	(915)
Interest expense, net	(3,553)	(1,747)	(6,539)	(5,723)
Income before income tax expense	7,624	28,718	45,238	93,337
Income tax expense	618	5,331	10,453	17,258
Net income	$ 7,006	$ 23,387	$ 34,785	$ 76,079
Basic earnings per share (in dollars per share)	$ 0.37	$ 1.26	$ 1.86	$ 4.10
Diluted earnings per share (in dollars per share)	$ 0.37	$ 1.25	$ 1.86	$ 4.07
Shares used in computing:
Basic earnings per share (in shares)	18,688	18,581	18,678	18,569
Diluted earnings per share (in shares)	18,713	18,724	18,695	18,715

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 7,006	$ 23,387	$ 34,785	$ 76,079
Foreign currency translation adjustment	11,269	(10,187)	10,004	(12,262)
Pension and other postretirement benefits:
Pension settlement benefits, net of tax (Note 4)	0	0	(48)	0
Actuarial net gain incurred, net of tax (Note 4)	3	0	629	0
Amortization of loss, net of tax (Note 4)	66	172	199	485
Derivative instrument designated as cash flow hedge:
Change in unrealized loss before reclassifications, net of tax (Note 4)	(638)	(158)	(1,504)	(1,362)
Unrealized loss (gain) reclassified into earnings, net of tax (Note 4)	2,810	(32)	2,476	(188)
Other comprehensive income (loss)	13,510	(10,205)	11,756	(13,327)
Comprehensive income	$ 20,516	$ 13,182	$ 46,541	$ 62,752

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 186,123	$ 166,849
Accounts receivable, less allowance for doubtful accounts of $1,366 and $1,691	138,611	122,285
Contract assets	22,061	22,455
Inventories	109,733	132,859
Prepaid income taxes	3,406	4,524
Asbestos-related insurance receivables, current portion	4,292	4,292
Other current assets	10,217	10,838
Total current assets	474,443	464,102
Property, plant and equipment, net of accumulated depreciation of $370,164 and $341,119	266,104	260,246
Investments in unconsolidated joint ventures	12,755	16,461
Deferred income taxes	26,907	17,117
Goodwill	265,781	262,930
Other intangible assets, net of amortization	132,818	158,947
Pension assets	4,337	12,790
Asbestos-related insurance receivables, non-current portion	74,024	74,024
Other long-term assets	14,871	6,564
Total assets	1,272,040	1,273,181
Current liabilities
Accounts payable	35,886	33,019
Accrued employee benefits and compensation	35,991	29,678
Accrued income taxes payable	6,235	10,649
Asbestos-related liabilities, current portion	5,007	5,007
Other accrued liabilities	23,237	21,872
Total current liabilities	106,356	100,225
Borrowings under revolving credit facility	60,000	123,000
Pension and other postretirement benefits liabilities	1,654	1,567
Asbestos-related liabilities, non-current portion	80,540	80,873
Non-current income tax	15,509	10,423
Deferred income taxes	9,497	9,220
Other long-term liabilities	11,460	13,973
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,676 and 18,577 shares issued and outstanding	18,676	18,577
Additional paid-in capital	145,010	138,526
Retained earnings	858,487	823,702
Accumulated other comprehensive loss	(35,149)	(46,905)
Total shareholders' equity	987,024	933,900
Total liabilities and shareholders' equity	$ 1,272,040	$ 1,273,181
Capital Stock, shares outstanding (shares)	18,676	18,577
Capital Stock, shares issued (shares)	18,676	18,577

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,366	$ 1,691
Property, plant and equipment, accumulated depreciation	$ 370,164,000	$ 341,119,000
Capital Stock, par value (in dollars per share)	$ 1	$ 1
Capital Stock, authorized shares (shares)	50,000,000	50,000,000
Capital Stock, shares issued (shares)	18,676,000	18,577,000
Capital Stock, shares outstanding (shares)	18,676,000	18,577,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating Activities:
Net income	$ 34,785	$ 76,079
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	48,562	37,176
Equity compensation expense	10,317	9,294
Deferred income taxes	(9,987)	(5,565)
Equity in undistributed income of unconsolidated joint ventures	(3,177)	(4,077)
Dividends received from unconsolidated joint ventures	7,075	5,375
Pension settlement benefits	(63)	0
Pension and other postretirement benefits	(149)	(503)
Asbestos-related charges	0	67
Loss on sale or disposal of property, plant and equipment	49	278
Impairment charges	386	1,537
Provision (benefit) for doubtful accounts	(63)	16
Changes in assets and liabilities:
Accounts receivable	(14,702)	3,668
Contract assets	394	(1,342)
Inventories	25,008	(7,788)
Pension and postretirement benefit contributions	(248)	(16)
Other current assets	1,876	641
Accounts payable and other accrued expenses	5,236	(2,552)
Other, net	8,374	3,384
Net cash provided by operating activities	113,673	115,672
Investing Activities:
Capital expenditures	(28,944)	(38,827)
Proceeds from the sale of property, plant and equipment, net	0	9
Return of capital from unconsolidated joint ventures	0	2,625
Net cash used in investing activities	(28,944)	(36,193)
Financing Activities:
Proceeds from borrowings under revolving credit facility	150,000	0
Repayment of debt principal and finance lease obligations	(213,299)	(98,294)
Payments of taxes related to net share settlement of equity awards	(5,107)	(7,309)
Proceeds from the exercise of stock options, net	0	344
Proceeds from issuance of shares to employee stock purchase plan	1,373	1,249
Net cash provided by (used in) financing activities	(67,033)	(104,010)
Effect of exchange rate fluctuations on cash	1,578	(2,460)
Net increase (decrease) in cash and cash equivalents	19,274	(26,991)
Cash and cash equivalents at beginning of period	166,849	167,738
Cash and cash equivalents at end of period	186,123	140,747
Supplemental Disclosures:
Accrued capital additions	1,493	1,999
Interest, net of amounts capitalized	4,301	6,449
Income taxes	$ 21,645	$ 16,018

XML

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Capital Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Cumulative-effect adjustment for lease accounting	Accumulated Other Comprehensive Loss
Balance, beginning of period at Dec. 31, 2018		$ 18,395	$ 132,360	$ 776,403	$ (20)	$ (78,834)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		139	(7,448)
Stock options exercised		11	333
Shares issued for employee stock purchase plan		15	1,234
Shares issued to directors		12	(12)
Equity compensation expense			9,294
Net income	$ 76,079			76,079
Other comprehensive income (loss)	(13,327)					(13,327)
Balance, end of period at Sep. 30, 2019	914,634	18,572	135,761	852,462		(92,161)
Balance, beginning of period at Jun. 30, 2019		18,559	131,836	829,075		(81,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		2	113
Stock options exercised		1	16
Shares issued for employee stock purchase plan		8	647
Shares issued to directors		2	(2)
Equity compensation expense			3,151
Net income	23,387			23,387
Other comprehensive income (loss)	(10,205)					(10,205)
Balance, end of period at Sep. 30, 2019	914,634	18,572	135,761	852,462		(92,161)
Balance, beginning of period at Dec. 31, 2019	933,900	18,577	138,526	823,702		(46,905)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		86	(5,193)
Stock options exercised		0	0
Shares issued for employee stock purchase plan		13	1,360
Shares issued to directors		0	0
Equity compensation expense			10,317
Net income	34,785			34,785
Other comprehensive income (loss)	11,756					11,756
Balance, end of period at Sep. 30, 2020	987,024	18,676	145,010	858,487		(35,149)
Balance, beginning of period at Jun. 30, 2020		18,668	141,092	851,481		(48,659)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		1	(79)
Stock options exercised		0	0
Shares issued for employee stock purchase plan		7	702
Shares issued to directors		0	0
Equity compensation expense			3,295
Net income	7,006			7,006
Other comprehensive income (loss)	13,510					13,510
Balance, end of period at Sep. 30, 2020	$ 987,024	$ 18,676	$ 145,010	$ 858,487		$ (35,149)

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

As used herein, the terms “Company,” “Rogers,” “we,” “us,” “our” and similar terms mean Rogers Corporation and its consolidated subsidiaries, unless the context indicates otherwise.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the accompanying condensed consolidated financial statements include all normal recurring adjustments necessary for their fair presentation in accordance with GAAP. All significant intercompany balances and transactions have been eliminated.

Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Refer to the discussion below for our restructuring activities significant accounting policy.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of September 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for doubtful accounts, equity compensation, the carrying value of our goodwill, other intangible assets as well as other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition.

Restructuring Activities

We record charges associated with restructuring activities, such as employee termination benefits, which represent a one-time benefit, when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with restructuring activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The accounting guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value:

•Level 1 – Quoted prices in active markets for identical assets or liabilities.

•Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As a result of our pension termination and settlement efforts in late 2019 and the first half of 2020, we have a pension surplus investment balance, which is now accounted for as an available-for-sale investment as of June 2020. For additional information regarding this balance, refer to “Note 11 – Pension Benefits and Other Postretirement Benefits.” Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Available-for-Sale Investment at Fair Value as of September 30, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,911	$	2,416	$	—	$	9,327

(1) This balance was invested in funds comprised of short-term cash and fixed income securities, and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of September 30, 2020, the fair value of this investment approximated its carrying 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, were as follows:

	Derivative Instruments at Fair Value as of September 30, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(106)	$	—	$	(106)
Copper derivative contracts	$	—	$	2,640	$	—	$	2,640
Interest rate swap contract	$	—	$	—	$	—	$	—

	Derivative Instruments at Fair Value as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(6)	$	—	$	(6)
Copper derivative contracts	$	—	$	1,147	$	—	$	1,147
Interest rate swap contract	$	—	$	(1,254)	$	—	$	(1,254)

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item.

For additional information on derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

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Hedging Transactions and Derivative Financial Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Transactions and Derivative Financial Instruments

Hedging Transactions and Derivative Financial Instruments

We are exposed to certain risks related to our ongoing business operations. The primary risks being managed through our use of derivative instruments are foreign currency exchange rate risk, commodity pricing risk (primarily related to copper) and interest rate risk. We do not use derivative instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of these risks is described below:

•Foreign Currency – The fair value of any foreign currency option derivative is based upon valuation models applied to current market information such as strike price, spot rate, maturity date and volatility, and by reference to market values resulting from an over-the-counter market or obtaining market data for similar instruments with similar characteristics.

•Commodity – The fair value of copper derivatives is computed using a combination of intrinsic and time value valuation models, which are collectively a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate and volatility. The intrinsic valuation model reflects the difference between the strike price of the underlying copper derivative instrument and the current prevailing copper prices in an over-the-counter market at period end. The time value valuation model incorporates changes in the price of the underlying copper derivative instrument, the time value of money, the underlying copper derivative instrument’s strike price and the remaining time to the underlying copper derivative instrument’s expiration date from the period end date.

•Interest Rates – The fair value of interest rate swap instruments is derived by comparing the present value of the interest rate forward curve against the present value of the swap rate, relative to the notional amount of the swap. The net value represents the estimated amount we would receive or pay to terminate the agreements. Settlement amounts for an “in the money” swap would be adjusted down to compensate the counterparties for cost of funds, and the adjustment is directly related to the counterparties’ credit ratings.

The guidance for the accounting and disclosure of derivatives and hedging transactions requires companies to recognize all of their derivative instruments as either assets or liabilities at fair value in the condensed consolidated statements of financial position. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies for hedge accounting treatment as defined under the applicable accounting guidance. For derivative instruments that are designated and qualify for hedge accounting treatment as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) in the condensed consolidated statements of comprehensive income (loss). This gain or loss is reclassified into earnings in the same line item of the condensed consolidated statements of operations associated with the forecasted transaction and in the same period or

periods during which the hedged transaction affects earnings. As of September 30, 2019, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge, and the hedge was highly effective.

Foreign Currency

During the three months ended September 30, 2020, we entered into U.S. dollar, euro, and Korean won forward contracts. We entered into these foreign currency forward contracts to mitigate certain global transactional exposures. These contracts do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other (expense) income, net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2020, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	30,138,505
EUR/USD	€	9,430,781
KRW/USD	₩	11,684,000,000

Commodity

As of September 30, 2020, we had 21 outstanding contracts to hedge exposure related to the purchase of copper in our Power Electronics Solutions (PES) and Advanced Connectivity Solutions (ACS) operating segments. These contracts are held with financial institutions and are intended to offset rising copper prices and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other (expense) income, net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2020, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2020 - December 2020	201 metric tons per month
January 2021 - March 2021	256 metric tons per month
April 2021 - June 2021	256 metric tons per month
July 2021 - September 2021	222 metric tons per month

Interest Rates

In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction was designated as a cash flow hedge and qualified for hedge accounting treatment. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million. As a result of the termination of the interest rate swap, there is an offsetting decrease in the forecasted interest expense, net over the remaining term of the now-terminated interest rate swap, which was set to expire in February 2022. For additional information regarding our revolving credit facility, refer to “Note 9 – Debt.”

Effects on Financial Statements

The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows:

		Three Months Ended				Nine Months Ended
(Dollars in thousands)	Financial Statement Line Item	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other (expense) income, net	$	(823)	$	181	$	(1,378)	$	(406)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other (expense) income, net	$	1,238	$	(543)	$	1,067	$	(1,008)
Interest Rate Swap
Contract designated as hedging instrument	Other comprehensive income (loss)	$	2,771	$	(240)	$	1,254	$	(1,985)

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Derivative Instrument Designated as Cash Flow Hedge(2)		Total
Balance as of December 31, 2019	$	(35,478)	$	(10,455)	$	(972)	$	(46,905)
Other comprehensive income (loss) before reclassifications	10,004		629		(1,504)		9,129
Amounts reclassified from accumulated other comprehensive loss	—		151		2,476		2,627
Net current-period other comprehensive income (loss)	10,004		780		972		11,756
Balance as of September 30, 2020	$	(25,474)	$	(9,675)	$	—	$	(35,149)
Balance as of December 31, 2018	$	(30,488)	$	(48,700)	$	354	$	(78,834)
Other comprehensive loss before reclassifications	(12,262)		—		(1,362)		(13,624)
Amounts reclassified from accumulated other comprehensive loss	—		485		(188)		297
Net current-period other comprehensive income (loss)	(12,262)		485		(1,550)		(13,327)
Balance as of September 30, 2019	$	(42,750)	$	(48,215)	$	(1,196)	$	(92,161)

(1) Net of taxes of $2,154 and $2,368 as of September 30, 2020 and December 31, 2019, respectively. Net of taxes of $9,851 and $9,984 as of September 30, 2019 and December 31, 2018, respectively.

(2) Net of taxes of $0 and $282 as of September 30, 2020 and December 31, 2019, respectively. Net of taxes of $329 and $(106) as of September 30, 2019 and December 31, 2018, respectively.

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Inventories

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories, which are valued at the lower of cost or net realizable value, consisted of the following:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Raw materials	$	52,105	$	61,338
Work-in-process	26,452		30,043
Finished goods	31,176		41,478
Total inventories	$	109,733	$	132,859

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the net carrying amount of goodwill by operating segment were as follows:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2019	$	51,694	$	142,030	$	66,982	$	2,224	$	262,930
Foreign currency translation adjustment	—		(176)		3,027		—		$	2,851
September 30, 2020	$	51,694	$	141,854	$	70,009	$	2,224	$	265,781

Other Intangible Assets

The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows:

	September 30, 2020						December 31, 2019
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	149,891	$	58,935	$	90,956	$	149,317	$	39,018	$	110,299
Technology	82,102		50,776		31,326		80,938		45,190		35,748
Trademarks and trade names	11,986		6,676		5,310		11,994		4,361		7,633
Covenants not to compete	1,340		746		594		1,340		505		835
Total definite-lived other intangible assets	245,319		117,133		128,186		243,589		89,074		154,515
Indefinite-lived other intangible asset	4,632		—		4,632		4,432		—		4,432
Total other intangible assets	$	249,951	$	117,133	$	132,818	$	248,021	$	89,074	$	158,947

In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations.

Amortization expense was $15.4 million and $4.4 million for the three months ended September 30, 2020 and 2019, respectively, and was $26.7 million and $13.3 million for the nine months ended September 30, 2020 and 2019, respectively. The estimated future amortization expense is $15.4 million for the remainder of 2020 and $12.3 million, $11.8 million, $11.3 million and $9.9 million for 2021, 2022, 2023 and 2024, respectively. The increase in amortization expense for the three and nine months ended September 30, 2020, and decrease in forecasted amortization expense in future years, were due to the acceleration of amortization expense related to our Diversified Silicone Products, Inc. (DSP) customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020. As part of our ongoing assessment of the useful lives of our definite-lived other intangible assets, we reviewed the deterioration of our DSP business and identified significant customer attrition, a sustained substantial decrease in net sales, as well as the planned phase-out of the DSP trademark and trade name by December 2020. Based on these events and circumstances, we concluded an adjustment to the remaining useful lives of our DSP customer relationships and trademarks and trade names definite-lived other intangible assets was warranted.

The weighted average amortization period as of September 30, 2020, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	5.5 years
Technology	4.0 years
Trademarks and trade names	3.8 years
Covenants not to compete	1.3 years
Total definite-lived other intangible assets	5.0 years

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Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars and shares in thousands, except per share amounts)	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Numerator:
Net income	$	7,006	$	23,387	$	34,785	$	76,079
Denominator:
Weighted-average shares outstanding - basic	18,688		18,581		18,678		18,569
Effect of dilutive shares	25		143		17		146
Weighted-average shares outstanding - diluted	18,713		18,724		18,695		18,715
Basic earnings per share	$	0.37	$	1.26	$	1.86	$	4.10
Diluted earnings per share	$	0.37	$	1.25	$	1.86	$	4.07

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 September 30, 2020 and 2019, 32,501 shares and 3,173 shares were excluded, respectively.

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Capital Stock and Equity Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Capital Stock and Equity Compensation

Capital Stock and Equity Compensation

Equity Compensation

Performance-Based Restricted Stock Units

As of September 30, 2020, we had performance-based restricted stock units from 2020, 2019, and 2018 outstanding. These awards generally cliff vest at the end of a three-year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The outstanding awards have one measurement criterion: the three-year total shareholder return (TSR) on our capital stock as compared to that of a specified group of peer companies. The TSR measurement criterion of the awards is considered a market condition. As such, the fair value of this measurement criterion was determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2020 and 2019:

	February 12, 2020	June 3, 2019	February 7, 2019
Expected volatility	41.0%	39.7%	36.7%
Expected term (in years)	2.9	2.6	2.9
Risk-free interest rate	1.41%	1.78%	2.43%

Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility.

Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model.

Risk-free interest rate – We use an implied “spot rate” yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate.

Expected dividend yield – We do not currently pay dividends on our capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model.

A summary of activity of the outstanding performance-based restricted stock units for the nine months ended September 30, 2020 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2019	106,943
Awards granted	87,244
Stock issued	(75,486)
Awards forfeited	(5,866)
Awards outstanding as of September 30, 2020	112,835

We recognized $1.6 million and $1.5 million of compensation expense for performance-based restricted stock units for the three months ended September 30, 2020 and 2019, respectively. We recognized $4.3 million and $3.5 million of compensation expense for performance-based restricted stock units for the nine months ended September 30, 2020 and 2019, respectively.

Time-Based Restricted Stock Units

As of September 30, 2020, we had time-based restricted stock unit awards from 2020, 2019, 2018 and 2017 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur.

A summary of activity of the outstanding time-based restricted stock units for the nine months ended September 30, 2020 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2019	101,685
Awards granted	58,288
Stock issued	(48,901)
Awards forfeited	(4,962)
Awards outstanding as of September 30, 2020	106,110

We recognized $1.5 million and $1.5 million of compensation expense for time-based restricted stock units for the three months ended September 30, 2020 and 2019, respectively. We recognized $4.6 million and $4.4 million of compensation expense for time-based restricted stock units for the nine months ended September 30, 2020 and 2019, respectively.

Deferred Stock Units

We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date.

A summary of activity of the outstanding deferred stock units for the nine months ended September 30, 2020 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2019	7,150
Awards granted	9,400
Stock issued	(5,100)
Awards outstanding as of September 30, 2020	11,450

We recognized no compensation expense related to deferred stock units for the three months ended September 30, 2020 and 2019, respectively. We recognized $1.0 million and $1.1 million of compensation expense for the nine months ended September 30, 2020 and 2019, respectively.

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Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

Debt

In February 2017, we entered into a secured five-year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the Third Amended Credit Agreement), which increased the principal amount of our revolving credit facility to up to $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, and provided an additional $175.0 million accordion feature. Borrowings may be used to finance working capital needs, for letters of credit and for general corporate purposes in the ordinary course of business, including the financing of permitted acquisitions (as defined in the Third Amended Credit Agreement).

All obligations under the Third Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Third Amended Credit Agreement (the Guarantors). The obligations are also secured by a Third Amended and Restated Pledge and Security Agreement, dated as of February 17, 2017, entered into by us and the Guarantors which grants to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of the non-real estate assets of the Guarantors. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries. All revolving loans are due on the maturity date, February 17, 2022.

Borrowings under the Third Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest at a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the Federal Reserve Bank of New York (NYFRB) rate in effect on such day plus ½ of 1% and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 137.5 to 175.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of September 30, 2020, the spread was 137.5 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Third Amended Credit Agreement, we are required to pay a quarterly fee of 20 to 30 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Third Amended Credit Agreement.

The Third Amended Credit Agreement contains customary representations, warranties, covenants, mandatory prepayments and events of default under which our payment obligations may be accelerated. If an event of default occurs, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings to be immediately due and payable together with accrued interest and fees. The financial covenants include requirements to maintain (1) a leverage ratio of no more than 3.25 to 1.00, subject to an election to increase the maximum leverage ratio to 3.50 to 1.00 for three fiscal quarters in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00.

The Third Amended Credit Agreement generally permits us to pay cash dividends to our shareholders, provided that (i) no default or event of default has occurred and is continuing or would result from the dividend payment and (ii) our leverage ratio does not exceed 2.75 to 1.00. If our leverage ratio exceeds 2.75 to 1.00, we may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during the fiscal year, provided that no default or event of default has occurred and is continuing or would result from the payments. Our leverage ratio did not exceed 2.75 to 1.00 as of September 30, 2020.

In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction was designated as a cash flow hedge and qualified for hedge accounting treatment. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million.

We borrowed $150.0 million under our revolving credit facility as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic, during the three months ended March 31, 2020. We did not borrow anything further under our revolving credit facility for the three and nine months ended September 30, 2020. We are not required to make any quarterly principal payments under the Third Amended Credit Agreement. However, for the three and nine months ended September 30, 2020, we made $163.0 million and $213.0 million of discretionary principal payments on our revolving credit facility, respectively. We had $60.0 million in outstanding borrowings under our revolving credit facility as of September 30, 2020.

We incurred interest expense on our outstanding debt, net of the impacts of our interest rate swap, of $3.4 million and $1.8 million for the three months ended September 30, 2020 and 2019, respectively, and $6.3 million and $6.1 million for the nine months ended September 30, 2020, and 2019, respectively. We incurred immaterial unused commitment fees for each of the three- and nine-month periods ended September 30, 2020 and 2019.

We had $0.7 million and $1.2 million of outstanding line of credit issuance costs as of September 30, 2020 and December 31, 2019, respectively, which will be amortized over the life of the Third Amended Credit Agreement. We recognized an immaterial amount of amortization expense for each of the three- and nine-month periods ended September 30, 2020 and 2019, related to these deferred costs.

On October 16, 2020, we entered into the Fourth Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A, as administrative agent, and the lenders party thereto (the Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement amends and restates the Third Amended Credit Agreement, and provides for a revolving credit facility with up to a $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, in addition to a $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 Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement extends the maturity, the date on which all amounts borrowed or outstanding under the Fourth Amended Credit Agreement are due, from February 17, 2022 to March 31, 2024.

All obligations under the Fourth Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fourth Amended Credit Agreement (the Guarantors). The obligations are also secured by a Fourth Amended and Restated Pledge and Security Agreement, dated as of October 16, 2020, 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 our and the Guarantors’ non-real estate assets. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

Borrowings under the Fourth 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 62.5 to 100.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the NYFRB rate in effect on such day plus ½ of 1%, and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Fourth Amended Credit Agreement, we are required to pay a quarterly fee of 25 to 35 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement contains customary representations and 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 total net leverage ratio of no more than 3.25 to 1.00, subject to a one-time election to increase the maximum total net 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. We are permitted to net up to $50.0 million of unrestricted domestic cash and cash equivalents against indebtedness in the calculation of the total net leverage ratio.

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Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.4 million and $4.5 million as of September 30, 2020 and December 31, 2019, respectively. The finance lease right-of-use asset balance for this facility was $6.3 million and $6.3 million as of September 30, 2020 and December 31, 2019, respectively. Accumulated amortization related to this finance lease right-of-use asset was $4.2 million and $3.8 million as of September 30, 2020 and December 31, 2019, respectively. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of September 30, 2020 and December 31, 2019.

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019.

We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We

account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.

Our expenses and payments for operating leases were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating leases expense	$	846	$	843	$	2,268	$	2,336
Short-term leases expense	$	154	$	68	$	384	$	150
Payments on operating lease obligations	$	719	$	719	$	2,187	$	2,243

Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2020		December 31, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,307	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,039	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,433	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	—	$	4,140
Total finance lease obligations		$	4,433	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,135	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,023	$	2,334
Total operating lease obligations		$	4,158	$	4,677

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2020:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Total Leases		Leases Signed		Less: Leases Not Yet Commenced		Total Leases
2020	$	139	$	—	$	139	$	674	$	(2)	$	672
2021	4,584		(193)		4,391		2,002		(12)		1,990
2022	193		(193)		—		1,096		(17)		1,079
2023	186		(186)		—		454		(15)		439
2024	—		—		—		211		(5)		206
Thereafter	—		—		—		5		—		5
Total lease payments	5,102		(572)		4,530		4,442		(51)		4,391
Less: Interest	(124)		27		(97)		(236)		3		(233)
Present Value of Net Future Minimum Lease Payments	$	4,978	$	(545)	$	4,433	$	4,206	$	(48)	$	4,158

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.3 years
Weighted Average Discount Rate	3.00%	4.84%

Leases

Leases

We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we have an option to purchase the property upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. Our finance lease obligation related to this facility was $4.4 million and $4.5 million as of September 30, 2020 and December 31, 2019, respectively. The finance lease right-of-use asset balance for this facility was $6.3 million and $6.3 million as of September 30, 2020 and December 31, 2019, respectively. Accumulated amortization related to this finance lease right-of-use asset was $4.2 million and $3.8 million as of September 30, 2020 and December 31, 2019, respectively. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of September 30, 2020 and December 31, 2019.

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three- and nine-month periods ended September 30, 2020 and 2019.

We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We

account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.

Our expenses and payments for operating leases were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating leases expense	$	846	$	843	$	2,268	$	2,336
Short-term leases expense	$	154	$	68	$	384	$	150
Payments on operating lease obligations	$	719	$	719	$	2,187	$	2,243

Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2020		December 31, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,307	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,039	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,433	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	—	$	4,140
Total finance lease obligations		$	4,433	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,135	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,023	$	2,334
Total operating lease obligations		$	4,158	$	4,677

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2020:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Total Leases		Leases Signed		Less: Leases Not Yet Commenced		Total Leases
2020	$	139	$	—	$	139	$	674	$	(2)	$	672
2021	4,584		(193)		4,391		2,002		(12)		1,990
2022	193		(193)		—		1,096		(17)		1,079
2023	186		(186)		—		454		(15)		439
2024	—		—		—		211		(5)		206
Thereafter	—		—		—		5		—		5
Total lease payments	5,102		(572)		4,530		4,442		(51)		4,391
Less: Interest	(124)		27		(97)		(236)		3		(233)
Present Value of Net Future Minimum Lease Payments	$	4,978	$	(545)	$	4,433	$	4,206	$	(48)	$	4,158

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.3 years
Weighted Average Discount Rate	3.00%	4.84%

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Pension Benefits and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Pension Benefit and Other Postretirement Benefits

Pension Benefits and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of December 31, 2019, we had two qualified noncontributory defined benefit pension plans. In June 2020, we completed the remaining settlement efforts for the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly

Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)), which had been terminated and substantially settled in late 2019. As of September 30, 2020, only the Rogers Corporation Employees’ Pension Plan (the Union Plan), which was frozen and ceased accruing benefits, remained. There are no plans to terminate the Union Plan.

Additionally, we sponsor other postretirement benefit plans, including multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31st for each respective plan year.

Pension Plan Termination & Settlement

During the second quarter of 2019, following receipt of a determination letter from the Internal Revenue Service (IRS), we amended the Merged Plan to (a) terminate the Merged Plan (subject to discretionary approval by our Chief Executive Officer) and (b) add a lump sum distribution option in connection with the termination of the Merged Plan, if approved. We subsequently provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity.

On October 17, 2019, our Chief Executive Officer approved the termination of the Merged Plan. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution, for $123.3 million, with an initial cash settlement date of October 24, 2019, and a true-up cash settlement date of June 1, 2020. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020.

Lump sum distributions of $38.9 million were paid out prior to December 31, 2019. The Merged Plan paid an additional $1.3 million of monthly pension benefit payments subsequent to the annuity purchase date during the transition period ending December 31, 2019.

In addition, we recorded a total non-cash pre-tax settlement charge in connection with the termination of the Merged Plan of $53.2 million during the fourth quarter of 2019, as well as an immaterial non-cash pre-tax settlement benefit during the second quarter of 2020. This net settlement amount recognized included the immediate recognition into expense of the related unrecognized losses within “Accumulated other comprehensive loss” on the consolidated statements of financial position as of the plan termination date. The pension settlement charge during the fourth quarter of 2019 was recognized in the “Pension settlement charges” line item in the consolidated statements of operations, and the pension settlement benefit during the second quarter of 2020 was recognized in the “Pension settlement charges” line item in the condensed consolidated statements of operations.

As of September 30, 2020, the remaining pension surplus investment balance was approximately $9.3 million. We plan on using a portion of the funds to pay plan expenses, and moving the remainder funds from the pension trust to a defined contribution plan trust, where they will be used to fund certain employer contributions and pay plan expenses. On July 27, 2020, we transferred $7.4 million of the pension surplus investment balance to a suspense account held within a trust for the Rogers Employee Savings and Investment Plan, a 401(k) plan for domestic employees.

Components of Net Periodic Benefit (Credit) Cost

The components of net periodic benefit (credit) cost were as follows:

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)	2020		2019		2020		2019		2020		2019		2020		2019
Service cost	$	—	$	—	$	—	$	—	$	17	$	12	$	51	$	48
Interest cost	223		1,790		685		5,359		10		14		30		44
Expected return of plan assets	(394)		(2,187)		(1,180)		(6,571)		—		—		—		—
Amortization of prior service credit	—		—		—		—		(28)		(252)		(84)		(758)
Amortization of net loss	99		476		327		1,386		—		—		—		—
Settlement benefit	—		—		(63)		—		—		—		—		—
Net periodic benefit (credit) cost	$	(72)	$	79	$	(231)	$	174	$	(1)	$	(226)	$	(3)	$	(666)

Employer Contributions

There were no required or voluntary contributions made to our Merged Plan for the three and nine-month periods ended September 30, 2020 and 2019. Additionally, there were no required or voluntary contributions made to our Union Plan for the three and nine-month periods ended September 30, 2020 and 2019, and we are not required to make additional contributions to this plan for the remainder of 2020.

As there is no funding requirement for the other postretirement benefit plans, we funded these benefit payments as incurred, which were immaterial for each of the three and nine-month periods ended September 30, 2020 and 2019, using cash from operations.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We are currently engaged in the following material environmental and legal proceedings:

Voluntary Corrective Action Program

Our location in Rogers, Connecticut is part of the Connecticut Voluntary Corrective Action Program (VCAP). As part of this program, we partnered with the Connecticut Department of Energy and Environmental Protection (CT DEEP) to determine the corrective actions to be taken at the site related to contamination issues. We evaluated this matter and completed internal due diligence work related to the site in the fourth quarter of 2015. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We incurred $1.7 million of aggregate remediation costs through September 30, 2020, and the accrual for future remediation efforts is $1.0 million.

Asbestos

Overview

We, like many other industrial companies, have been named as a defendant in a number of lawsuits filed in courts across the country by persons alleging personal injury from exposure to products containing asbestos. We have never mined, milled, manufactured or marketed asbestos; rather, we made and provided to industrial users a limited number of products that contained encapsulated asbestos, but we stopped manufacturing these products in the late 1980s. Most of the claims filed against us involve numerous defendants, sometimes as many as several hundred.

The following table summarizes the change in number of asbestos claims outstanding for the nine months ended September 30, 2020:

	Asbestos Claims
Claims outstanding as of January 1, 2020	592
New claims filed	88
Pending claims concluded(1)	(122)
Claims outstanding as of September 30, 2020	558

(1) For the nine months ended September 30, 2020, 103 claims were dismissed and 19 claims were settled. Settlements totaled approximately $5.4 million for the nine months ended September 30, 2020.

Impact on Financial Statements

We recognize a liability for asbestos-related contingencies that are probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos-related matters, we record asbestos-related insurance receivables that are deemed probable.

The liability projection period covers all current and future indemnity and defense costs through 2064, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy.

To date, the indemnity and defense costs of our asbestos-related product liability litigation have been substantially covered by insurance. Although we have exhausted coverage under some of our insurance policies, we believe that we have applicable primary, excess and/or umbrella coverage for claims arising with respect to most of the years during which we manufactured and marketed asbestos-containing products. In addition, we have entered into a cost sharing agreement with most of our primary, excess and umbrella insurance carriers to facilitate the ongoing administration and payment of claims covered by the carriers. The cost sharing agreement may be terminated by any party, but will continue until a party elects to terminate it. As of the filing date for this report, the agreement has not been terminated, and no carrier had informed us it intended to terminate the agreement. We expect to continue to exhaust individual primary, excess and umbrella coverages over time, and there is no

assurance that such exhaustion will not accelerate due to additional claims, damages and settlements or that coverage will be available as expected. We are responsible for uninsured indemnity and defense costs, and we incurred an immaterial amount of expenses for each of the three- and nine-month periods ended September 30, 2020 and 2019, respectively, related to such costs.

The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded.

Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income.

Our projected asbestos-related liabilities and insurance receivables were as follows:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Asbestos-related liabilities	$	85,547	$	85,880
Asbestos-related insurance receivables	$	78,316	$	78,316

General

In addition to the above issues, the nature and scope of our business brings us in regular contact with the general public and a variety of businesses and government agencies. Such activities inherently subject us to the possibility of litigation, including environmental and product liability matters that are defended and handled in the ordinary course of business. We have established accruals for matters for which management considers a loss to be probable and reasonably estimable. It is the opinion of management that facts known at the present time do not indicate that such litigation will have a material adverse impact on our results of operations, financial position or cash flows.

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Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective income tax rate was 8.1% and 18.6% for the three months ended September 30, 2020 and 2019, respectively. The decrease from the third quarter of 2019 was primarily due to the beneficial impact of changes in valuation allowance related to research and development (R&D) credits, partially offset by the increase in current quarter accruals of reserves for uncertain tax positions, higher tax impact on unremitted foreign earnings and profits, and changes in pretax mix across jurisdictions with disparate tax rates. Our effective income tax rate was 23.1% and 18.5% for the nine months ended September 30, 2020 and 2019, respectively. The increase from the first nine months of 2019 was primarily due to the increase in current quarter accruals of reserves for uncertain tax positions, the decrease in excess tax deductions on stock-based compensation and higher tax impact on unremitted foreign earnings and profits, partially offset by the beneficial impact of changes in valuation allowance related to R&D credits and pretax mix across jurisdictions with disparate tax rates.

The total amount of unrecognized tax benefits as of September 30, 2020 was $14.9 million, of which $14.5 million would affect our effective tax rate if recognized.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of September 30, 2020, we had $1.1 million accrued for the payment of interest.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. With few exceptions, we are no longer subject to examinations by tax authorities for years prior to 2015.

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Operating Segment Information

9 Months Ended

Sep. 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 Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Three Months Ended September 30, 2020
Net sales - recognized over time	$	219	$	2,612	$	47,827	$	3,568	$	54,226
Net sales - recognized at a point in time	63,495		83,832		100		291		147,718
Total net sales	$	63,714	$	86,444	$	47,927	$	3,859	$	201,944
Operating income (loss)	$	4,981	$	7,372	$	(4,691)	$	1,132	$	8,794
Three Months Ended September 30, 2019
Net sales - recognized over time	$	—	$	3,429	$	42,906	$	4,504	$	50,839
Net sales - recognized at a point in time	78,983		91,511		225		284		171,003
Total net sales	$	78,983	$	94,940	$	43,131	$	4,788	$	221,842
Operating income (loss)	$	13,778	$	17,995	$	(3,358)	$	1,470	$	29,885
Nine Months Ended September 30, 2020
Net sales - recognized over time	$	219	$	8,106	$	139,288	$	10,295	$	157,908
Net sales - recognized at a point in time	198,988		233,490		580		945		434,003
Total net sales	$	199,207	$	241,596	$	139,868	$	11,240	$	591,911
Operating income (loss)	$	26,067	$	21,884	$	(3,929)	$	3,339	$	47,361
Nine Months Ended September 30, 2019
Net sales - recognized over time	$	—	$	9,400	$	153,827	$	13,421	$	176,648
Net sales - recognized at a point in time	251,982		272,196		780		2,886		527,844
Total net sales	$	251,982	$	281,596	$	154,607	$	16,307	$	704,492
Operating income (loss)	$	45,301	$	46,752	$	(976)	$	4,821	$	95,898

Net sales by operating segment and by geographic area were as follows:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Three Months Ended September 30, 2020
United States	$	18,058	$	29,733	$	5,901	$	980	$	54,672
Other Americas	497		2,517		36		144		3,194
Total Americas	18,555		32,250		5,937		1,124		57,866
China	26,641		34,016		11,229		754		72,640
Other APAC	11,588		11,150		4,633		530		27,901
Total APAC	38,229		45,166		15,862		1,284		100,541
Germany	1,973		5,450		12,074		99		19,596
Other EMEA	4,957		3,578		14,054		1,352		23,941
Total EMEA	6,930		9,028		26,128		1,451		43,537
Total net sales	$	63,714	$	86,444	$	47,927	$	3,859	$	201,944
Three Months Ended September 30, 2019
United States	$	17,671	$	41,232	$	8,115	$	1,237	$	68,255
Other Americas	807		2,452		11		271		3,541
Total Americas	18,478		43,684		8,126		1,508		71,796
China	37,398		26,461		7,642		908		72,409
Other APAC	13,813		14,385		6,269		675		35,142
Total APAC	51,211		40,846		13,911		1,583		107,551
Germany	4,251		3,868		10,528		171		18,818
Other EMEA	5,043		6,542		10,566		1,526		23,677
Total EMEA	9,294		10,410		21,094		1,697		42,495
Total net sales	$	78,983	$	94,940	$	43,131	$	4,788	$	221,842

(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
Nine Months Ended September 30, 2020
United States	$	49,907	$	98,373	$	19,562	$	2,666	$	170,508
Other Americas	2,122		6,634		222		503		9,481
Total Americas	52,029		105,007		19,784		3,169		179,989
China	86,846		72,550		28,657		2,003		190,056
Other APAC	35,482		33,938		13,857		1,531		84,808
Total APAC	122,328		106,488		42,514		3,534		274,864
Germany	8,354		13,883		40,829		292		63,358
Other EMEA	16,496		16,218		36,741		4,245		73,700
Total EMEA	24,850		30,101		77,570		4,537		137,058
Total net sales	$	199,207	$	241,596	$	139,868	$	11,240	$	591,911
Nine Months Ended September 30, 2019
United States	$	47,014	$	126,067	$	23,800	$	3,606	$	200,487
Other Americas	2,598		6,725		260		668		10,251
Total Americas	49,612		132,792		24,060		4,274		210,738
China	129,220		72,726		29,989		4,374		236,309
Other APAC	44,980		44,407		18,232		2,244		109,863
Total APAC	174,200		117,133		48,221		6,618		346,172
Germany	12,674		10,775		46,780		447		70,676
Other EMEA	15,496		20,896		35,546		4,968		76,906
Total EMEA	28,170		31,671		82,326		5,415		147,582
Total net sales	$	251,982	$	281,596	$	154,607	$	16,307	$	704,492

(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)	September 30, 2020		December 31, 2019
Advanced Connectivity Solutions	$	186	$	—
Elastomeric Material Solutions	1,090		1,077
Power Electronics Solutions	19,132		19,471
Other	1,653		1,907
Total contract assets	$	22,061	$	22,455

We did not have any contract liabilities as of September 30, 2020 or December 31, 2019. No impairment losses were recognized for either of the three or nine-month periods ended September 30, 2020 and 2019, respectively, on any receivables or contract assets arising from our contracts with customers.

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Supplemental Financial Information

9 Months Ended

Sep. 30, 2020

Supplemental Income Statement Elements [Abstract]

Supplemental Financial Information

Supplemental Financial Information

Restructuring and Impairment Charges

The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Restructuring charges	$	9,027	$	(1)	$	9,027	$	948
Impairment charges	386		581		386		1,537
Total restructuring and impairment charges	$	9,413	$	580	$	9,413	$	2,485

Our PES, ACS and EMS operating segments incurred $6.3 million, $2.9 million and $0.2 million of restructuring and impairment charges, respectively, for the three and nine months ended September 30, 2020.

Restructuring Charges

During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our PES and ACS operating segments, in order to achieve greater cost competitiveness as well as align capacity with end market demand. We expect the majority of the restructuring activities to be completed by the end of the first half of 2021. Severance activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2020:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2019	$	—
Provisions	8,754
Payments	(5)
Foreign currency translation adjustment	(78)
Balance as of September 30, 2020	$	8,671

In 2018, we made the decision to consolidate our Santa Fe Springs, California operations into our facilities in Carol Stream, Illinois and Bear, Delaware, which was completed as of December 31, 2019. We recorded immaterial expense and $0.9 million of expense for the three and nine months ended September 30, 2019, respectively, related to this facility consolidation.

Impairment Charges

We recognized $0.4 million of impairment charges, primarily related to fixed assets in Belgium, for the three and nine months ended September 30, 2020. We recognized $0.6 million and $1.5 million in impairment charges on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition for the three and nine months ended September 30, 2019, respectively.

Other Operating (Income) Expense, Net

The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Lease income	$	—	$	(57)	$	—	$	(932)
Depreciation on leased assets	—		179		—		1,729
Loss on sale or disposal of property, plant and equipment	(4)		2		49		278
Economic incentive grants	—		—		(145)		—
Total other operating (income) expense, net	$	(4)	$	124	$	(96)	$	1,075

In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018, we recognized lease income of $0.1 million and $0.9 million for the three and nine months ended September 30, 2019, respectively, and related depreciation on leased assets of $0.2 million and $1.7 million, respectively, for the three and nine months ended September 30, 2019.

Interest Expense, Net

The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest on revolving credit facility	$	612	$	1,873	$	3,079	$	6,303
Interest rate swap settlements	2,769		(40)		3,191		(241)
Line of credit fees	112		125		430		378
Debt issuance amortization costs	138		138		414		414
Interest on finance leases	35		29		100		92
Interest income	(135)		(398)		(724)		(1,262)
Other	22		20		49		39
Total interest expense, net	$	3,553	$	1,747	$	6,539	$	5,723

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Recent Accounting Standards

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Recent Accounting Standards

Recent Accounting Standards

Recently Issued Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements.

Recently Adopted Standards Reflected in Our 2020 Financial Statements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our condensed consolidated financial statements.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restructuring Activities

Restructuring Activities

We record charges associated with restructuring activities, such as employee termination benefits, which represent a one-time benefit, when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with restructuring activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs.

Recently Issued Standards and Recently Adopted Standards Reflected in Our 2020 Financial Statements

Recently Issued Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements.

Recently Adopted Standards Reflected in Our 2020 Financial Statements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our condensed consolidated financial statements.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Available-for-sale Residual Pension Surplus Investment Balance

Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Available-for-Sale Investment at Fair Value as of September 30, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,911	$	2,416	$	—	$	9,327

(1) This balance was invested in funds comprised of short-term cash and fixed income securities, and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of September 30, 2020, the fair value of this investment approximated its carrying value.

Assets Measured at Fair Value on a Recurring Basis, Categorized by the Level of Inputs Used in the Valuation

Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Derivative Instruments at Fair Value as of September 30, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(106)	$	—	$	(106)
Copper derivative contracts	$	—	$	2,640	$	—	$	2,640
Interest rate swap contract	$	—	$	—	$	—	$	—

	Derivative Instruments at Fair Value as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(6)	$	—	$	(6)
Copper derivative contracts	$	—	$	1,147	$	—	$	1,147
Interest rate swap contract	$	—	$	(1,254)	$	—	$	(1,254)

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item.

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Hedging Transactions and Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2020, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	30,138,505
EUR/USD	€	9,430,781
KRW/USD	₩	11,684,000,000

As of September 30, 2020, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2020 - December 2020	201 metric tons per month
January 2021 - March 2021	256 metric tons per month
April 2021 - June 2021	256 metric tons per month
July 2021 - September 2021	222 metric tons per month

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows:

		Three Months Ended				Nine Months Ended
(Dollars in thousands)	Financial Statement Line Item	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other (expense) income, net	$	(823)	$	181	$	(1,378)	$	(406)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other (expense) income, net	$	1,238	$	(543)	$	1,067	$	(1,008)
Interest Rate Swap
Contract designated as hedging instrument	Other comprehensive income (loss)	$	2,771	$	(240)	$	1,254	$	(1,985)

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Balances Related to Each Component of Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive loss by component were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Derivative Instrument Designated as Cash Flow Hedge(2)		Total
Balance as of December 31, 2019	$	(35,478)	$	(10,455)	$	(972)	$	(46,905)
Other comprehensive income (loss) before reclassifications	10,004		629		(1,504)		9,129
Amounts reclassified from accumulated other comprehensive loss	—		151		2,476		2,627
Net current-period other comprehensive income (loss)	10,004		780		972		11,756
Balance as of September 30, 2020	$	(25,474)	$	(9,675)	$	—	$	(35,149)
Balance as of December 31, 2018	$	(30,488)	$	(48,700)	$	354	$	(78,834)
Other comprehensive loss before reclassifications	(12,262)		—		(1,362)		(13,624)
Amounts reclassified from accumulated other comprehensive loss	—		485		(188)		297
Net current-period other comprehensive income (loss)	(12,262)		485		(1,550)		(13,327)
Balance as of September 30, 2019	$	(42,750)	$	(48,215)	$	(1,196)	$	(92,161)

(1) Net of taxes of $2,154 and $2,368 as of September 30, 2020 and December 31, 2019, respectively. Net of taxes of $9,851 and $9,984 as of September 30, 2019 and December 31, 2018, respectively.

(2) Net of taxes of $0 and $282 as of September 30, 2020 and December 31, 2019, respectively. Net of taxes of $329 and $(106) as of September 30, 2019 and December 31, 2018, respectively.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories, which are valued at the lower of cost or net realizable value, consisted of the following:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Raw materials	$	52,105	$	61,338
Work-in-process	26,452		30,043
Finished goods	31,176		41,478
Total inventories	$	109,733	$	132,859

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the net carrying amount of goodwill by operating segment were as follows:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2019	$	51,694	$	142,030	$	66,982	$	2,224	$	262,930
Foreign currency translation adjustment	—		(176)		3,027		—		$	2,851
September 30, 2020	$	51,694	$	141,854	$	70,009	$	2,224	$	265,781

Schedule of Intangible Assets

The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows:

	September 30, 2020						December 31, 2019
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	149,891	$	58,935	$	90,956	$	149,317	$	39,018	$	110,299
Technology	82,102		50,776		31,326		80,938		45,190		35,748
Trademarks and trade names	11,986		6,676		5,310		11,994		4,361		7,633
Covenants not to compete	1,340		746		594		1,340		505		835
Total definite-lived other intangible assets	245,319		117,133		128,186		243,589		89,074		154,515
Indefinite-lived other intangible asset	4,632		—		4,632		4,432		—		4,432
Total other intangible assets	$	249,951	$	117,133	$	132,818	$	248,021	$	89,074	$	158,947

Schedule of Weighted Average Amortization Period, by Intangible Asset Class

The weighted average amortization period as of September 30, 2020, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	5.5 years
Technology	4.0 years
Trademarks and trade names	3.8 years
Covenants not to compete	1.3 years
Total definite-lived other intangible assets	5.0 years

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars and shares in thousands, except per share amounts)	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Numerator:
Net income	$	7,006	$	23,387	$	34,785	$	76,079
Denominator:
Weighted-average shares outstanding - basic	18,688		18,581		18,678		18,569
Effect of dilutive shares	25		143		17		146
Weighted-average shares outstanding - diluted	18,713		18,724		18,695		18,715
Basic earnings per share	$	0.37	$	1.26	$	1.86	$	4.10
Diluted earnings per share	$	0.37	$	1.25	$	1.86	$	4.07

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Capital Stock and Equity Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Assumptions Used in Calculation of Fair Value

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2020 and 2019:

	February 12, 2020	June 3, 2019	February 7, 2019
Expected volatility	41.0%	39.7%	36.7%
Expected term (in years)	2.9	2.6	2.9
Risk-free interest rate	1.41%	1.78%	2.43%

Performance-Based Restricted Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Activities

A summary of activity of the outstanding performance-based restricted stock units for the nine months ended September 30, 2020 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2019	106,943
Awards granted	87,244
Stock issued	(75,486)
Awards forfeited	(5,866)
Awards outstanding as of September 30, 2020	112,835

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 nine months ended September 30, 2020 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2019	101,685
Awards granted	58,288
Stock issued	(48,901)
Awards forfeited	(4,962)
Awards outstanding as of September 30, 2020	106,110

Deferred Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Activities

A summary of activity of the outstanding deferred stock units for the nine months ended September 30, 2020 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2019	7,150
Awards granted	9,400
Stock issued	(5,100)
Awards outstanding as of September 30, 2020	11,450

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Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Lease Expense, Payments for Operating Leases, and Information Related to Lease Term and Discount Rates

Our expenses and payments for operating leases were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating leases expense	$	846	$	843	$	2,268	$	2,336
Short-term leases expense	$	154	$	68	$	384	$	150
Payments on operating lease obligations	$	719	$	719	$	2,187	$	2,243

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.3 years
Weighted Average Discount Rate	3.00%	4.84%

Assets and Liabilities Balance Related to Finance and Operating Leases

Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2020		December 31, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,307	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,039	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,433	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	—	$	4,140
Total finance lease obligations		$	4,433	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,135	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,023	$	2,334
Total operating lease obligations		$	4,158	$	4,677

Future Minimum Lease Payments for Financing Leases

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 September 30, 2020:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Total Leases		Leases Signed		Less: Leases Not Yet Commenced		Total Leases
2020	$	139	$	—	$	139	$	674	$	(2)	$	672
2021	4,584		(193)		4,391		2,002		(12)		1,990
2022	193		(193)		—		1,096		(17)		1,079
2023	186		(186)		—		454		(15)		439
2024	—		—		—		211		(5)		206
Thereafter	—		—		—		5		—		5
Total lease payments	5,102		(572)		4,530		4,442		(51)		4,391
Less: Interest	(124)		27		(97)		(236)		3		(233)
Present Value of Net Future Minimum Lease Payments	$	4,978	$	(545)	$	4,433	$	4,206	$	(48)	$	4,158

Future Minimum Lease Payments for Operating Leases

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 September 30, 2020:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Total Leases		Leases Signed		Less: Leases Not Yet Commenced		Total Leases
2020	$	139	$	—	$	139	$	674	$	(2)	$	672
2021	4,584		(193)		4,391		2,002		(12)		1,990
2022	193		(193)		—		1,096		(17)		1,079
2023	186		(186)		—		454		(15)		439
2024	—		—		—		211		(5)		206
Thereafter	—		—		—		5		—		5
Total lease payments	5,102		(572)		4,530		4,442		(51)		4,391
Less: Interest	(124)		27		(97)		(236)		3		(233)
Present Value of Net Future Minimum Lease Payments	$	4,978	$	(545)	$	4,433	$	4,206	$	(48)	$	4,158

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Pension Benefits and Other Postretirement Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

The components of net periodic benefit (credit) cost were as follows:

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)	2020		2019		2020		2019		2020		2019		2020		2019
Service cost	$	—	$	—	$	—	$	—	$	17	$	12	$	51	$	48
Interest cost	223		1,790		685		5,359		10		14		30		44
Expected return of plan assets	(394)		(2,187)		(1,180)		(6,571)		—		—		—		—
Amortization of prior service credit	—		—		—		—		(28)		(252)		(84)		(758)
Amortization of net loss	99		476		327		1,386		—		—		—		—
Settlement benefit	—		—		(63)		—		—		—		—		—
Net periodic benefit (credit) cost	$	(72)	$	79	$	(231)	$	174	$	(1)	$	(226)	$	(3)	$	(666)

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Summary of Change in Number of Asbestos Claims Outstanding

The following table summarizes the change in number of asbestos claims outstanding for the nine months ended September 30, 2020:

	Asbestos Claims
Claims outstanding as of January 1, 2020	592
New claims filed	88
Pending claims concluded(1)	(122)
Claims outstanding as of September 30, 2020	558

(1) For the nine months ended September 30, 2020, 103 claims were dismissed and 19 claims were settled. Settlements totaled approximately $5.4 million for the nine months ended September 30, 2020.

Schedule of Asbestos-Related Claims and Insurance Receivables

Our projected asbestos-related liabilities and insurance receivables were as follows:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Asbestos-related liabilities	$	85,547	$	85,880
Asbestos-related insurance receivables	$	78,316	$	78,316

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Operating Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Reportable Segment Information

The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Three Months Ended September 30, 2020
Net sales - recognized over time	$	219	$	2,612	$	47,827	$	3,568	$	54,226
Net sales - recognized at a point in time	63,495		83,832		100		291		147,718
Total net sales	$	63,714	$	86,444	$	47,927	$	3,859	$	201,944
Operating income (loss)	$	4,981	$	7,372	$	(4,691)	$	1,132	$	8,794
Three Months Ended September 30, 2019
Net sales - recognized over time	$	—	$	3,429	$	42,906	$	4,504	$	50,839
Net sales - recognized at a point in time	78,983		91,511		225		284		171,003
Total net sales	$	78,983	$	94,940	$	43,131	$	4,788	$	221,842
Operating income (loss)	$	13,778	$	17,995	$	(3,358)	$	1,470	$	29,885
Nine Months Ended September 30, 2020
Net sales - recognized over time	$	219	$	8,106	$	139,288	$	10,295	$	157,908
Net sales - recognized at a point in time	198,988		233,490		580		945		434,003
Total net sales	$	199,207	$	241,596	$	139,868	$	11,240	$	591,911
Operating income (loss)	$	26,067	$	21,884	$	(3,929)	$	3,339	$	47,361
Nine Months Ended September 30, 2019
Net sales - recognized over time	$	—	$	9,400	$	153,827	$	13,421	$	176,648
Net sales - recognized at a point in time	251,982		272,196		780		2,886		527,844
Total net sales	$	251,982	$	281,596	$	154,607	$	16,307	$	704,492
Operating income (loss)	$	45,301	$	46,752	$	(976)	$	4,821	$	95,898

Net sales by operating segment and by geographic area were as follows:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
Three Months Ended September 30, 2020
United States	$	18,058	$	29,733	$	5,901	$	980	$	54,672
Other Americas	497		2,517		36		144		3,194
Total Americas	18,555		32,250		5,937		1,124		57,866
China	26,641		34,016		11,229		754		72,640
Other APAC	11,588		11,150		4,633		530		27,901
Total APAC	38,229		45,166		15,862		1,284		100,541
Germany	1,973		5,450		12,074		99		19,596
Other EMEA	4,957		3,578		14,054		1,352		23,941
Total EMEA	6,930		9,028		26,128		1,451		43,537
Total net sales	$	63,714	$	86,444	$	47,927	$	3,859	$	201,944
Three Months Ended September 30, 2019
United States	$	17,671	$	41,232	$	8,115	$	1,237	$	68,255
Other Americas	807		2,452		11		271		3,541
Total Americas	18,478		43,684		8,126		1,508		71,796
China	37,398		26,461		7,642		908		72,409
Other APAC	13,813		14,385		6,269		675		35,142
Total APAC	51,211		40,846		13,911		1,583		107,551
Germany	4,251		3,868		10,528		171		18,818
Other EMEA	5,043		6,542		10,566		1,526		23,677
Total EMEA	9,294		10,410		21,094		1,697		42,495
Total net sales	$	78,983	$	94,940	$	43,131	$	4,788	$	221,842

(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
Nine Months Ended September 30, 2020
United States	$	49,907	$	98,373	$	19,562	$	2,666	$	170,508
Other Americas	2,122		6,634		222		503		9,481
Total Americas	52,029		105,007		19,784		3,169		179,989
China	86,846		72,550		28,657		2,003		190,056
Other APAC	35,482		33,938		13,857		1,531		84,808
Total APAC	122,328		106,488		42,514		3,534		274,864
Germany	8,354		13,883		40,829		292		63,358
Other EMEA	16,496		16,218		36,741		4,245		73,700
Total EMEA	24,850		30,101		77,570		4,537		137,058
Total net sales	$	199,207	$	241,596	$	139,868	$	11,240	$	591,911
Nine Months Ended September 30, 2019
United States	$	47,014	$	126,067	$	23,800	$	3,606	$	200,487
Other Americas	2,598		6,725		260		668		10,251
Total Americas	49,612		132,792		24,060		4,274		210,738
China	129,220		72,726		29,989		4,374		236,309
Other APAC	44,980		44,407		18,232		2,244		109,863
Total APAC	174,200		117,133		48,221		6,618		346,172
Germany	12,674		10,775		46,780		447		70,676
Other EMEA	15,496		20,896		35,546		4,968		76,906
Total EMEA	28,170		31,671		82,326		5,415		147,582
Total net sales	$	251,982	$	281,596	$	154,607	$	16,307	$	704,492

(1)Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.

Contract assets by operating segment were as follows:

(Dollars in thousands)	September 30, 2020		December 31, 2019
Advanced Connectivity Solutions	$	186	$	—
Elastomeric Material Solutions	1,090		1,077
Power Electronics Solutions	19,132		19,471
Other	1,653		1,907
Total contract assets	$	22,061	$	22,455

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Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2020

Supplemental Income Statement Elements [Abstract]

Schedule of Restructuring and Impairment Charges

The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Restructuring charges	$	9,027	$	(1)	$	9,027	$	948
Impairment charges	386		581		386		1,537
Total restructuring and impairment charges	$	9,413	$	580	$	9,413	$	2,485

Schedule of Severance Activity

Severance activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2020:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2019	$	—
Provisions	8,754
Payments	(5)
Foreign currency translation adjustment	(78)
Balance as of September 30, 2020	$	8,671

Schedule of Other Operating (Income) Expense

The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Lease income	$	—	$	(57)	$	—	$	(932)
Depreciation on leased assets	—		179		—		1,729
Loss on sale or disposal of property, plant and equipment	(4)		2		49		278
Economic incentive grants	—		—		(145)		—
Total other operating (income) expense, net	$	(4)	$	124	$	(96)	$	1,075

Interest Income and Interest Expense Disclosure

The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest on revolving credit facility	$	612	$	1,873	$	3,079	$	6,303
Interest rate swap settlements	2,769		(40)		3,191		(241)
Line of credit fees	112		125		430		378
Debt issuance amortization costs	138		138		414		414
Interest on finance leases	35		29		100		92
Interest income	(135)		(398)		(724)		(1,262)
Other	22		20		49		39
Total interest expense, net	$	3,553	$	1,747	$	6,539	$	5,723

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Fair Value Measurements - Available-for-sale Pension Surplus (Details) - Fair Value, Measurements, Recurring $ in Thousands	Sep. 30, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	$ 9,327
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	6,911
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	2,416
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	$ 0

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Fair Value Measurements (Various Instruments That Require Fair Value Measurement) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ (106)	$ (6)
Foreign currency contracts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	0
Foreign currency contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	(106)	(6)
Foreign currency contracts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	0
Copper derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	2,640	1,147
Copper derivative contracts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	0
Copper derivative contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	2,640	1,147
Copper derivative contracts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	0
Interest rate swap contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	(1,254)
Interest rate swap contract | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	0
Interest rate swap contract | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	(1,254)
Interest rate swap contract | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ 0	$ 0

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Hedging Transactions and Derivative Financial Instruments (Notional Values of Derivative Instruments) (Details) - Contracts not designated as hedging instruments	Sep. 30, 2020 USD ($) tons_per_month	Sep. 30, 2020 EUR (€) tons_per_month	Sep. 30, 2020 KRW (₩) tons_per_month
October 2020 - December 2020
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	201	201	201
January 2021 - March 2021
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	256	256	256
April 2021 - June 2021
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	256	256	256
July 2021 - September 2021
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	222	222	222
USD/CNH | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | $	$ 30,138,505
EUR/USD | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | €		€ 9,430,781
KRW/USD | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | ₩			₩ 11,684,000,000

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Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details)	Oct. 02, 2020 USD ($)	Sep. 30, 2020 Contract	Mar. 31, 2017 USD ($)	Feb. 17, 2017 USD ($)
Revolving Credit Facility | Third Amended Credit Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum borrowing capacity				$ 450,000,000.0
Interest Rate Swap | Revolving Credit Facility | Third Amended Credit Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged balance on debt instrument			$ 75,000,000.0
Interest Rate Swap | Revolving Credit Facility | Third Amended Credit Agreement | Subsequent Event
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Settlement of interest rate swap	$ 2,400,000
Bank Term Loan
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of derivative contracts related to minimizing risk associated with potential rise in copper prices (in contracts) | Contract		21

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Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	$ (2,769)	$ 40	$ (3,191)	$ 241
Contracts not designated as hedging instruments | Other (expense) income, net | Foreign Currency Contracts
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	(823)	181	(1,378)	(406)
Contracts not designated as hedging instruments | Other (expense) income, net | Copper Derivative Contracts
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	1,238	(543)	1,067	(1,008)
Contract designated as hedging instrument | Other comprehensive income (loss) | Interest Rate Swap
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	$ 2,771	$ (240)	$ 1,254	$ (1,985)

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Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			$ 933,900
Other comprehensive income (loss) before reclassifications			9,129	$ (13,624)
Amounts reclassified from accumulated other comprehensive loss			2,627	297
Other comprehensive income (loss)	$ 13,510	$ (10,205)	11,756	(13,327)
Balance, end of period	987,024	914,634	987,024	914,634
AOCI, Pension and other postretirement benefit plans, tax	2,154	9,851	2,154	9,851	$ 2,368	$ 9,984
AOCI, cumulative changes in net gain (loss) from cash flow hedges, tax	0	329	0	329	$ 282	$ (106)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	(48,659)	(81,956)	(46,905)	(78,834)
Other comprehensive income (loss)	13,510	(10,205)	11,756	(13,327)
Balance, end of period	(35,149)	(92,161)	(35,149)	(92,161)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(35,478)	(30,488)
Other comprehensive income (loss) before reclassifications			10,004	(12,262)
Amounts reclassified from accumulated other comprehensive loss			0	0
Other comprehensive income (loss)			10,004	(12,262)
Balance, end of period	(25,474)	(42,750)	(25,474)	(42,750)
Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(10,455)	(48,700)
Other comprehensive income (loss) before reclassifications			629	0
Amounts reclassified from accumulated other comprehensive loss			151	485
Other comprehensive income (loss)			780	485
Balance, end of period	(9,675)	(48,215)	(9,675)	(48,215)
Derivative Instrument Designated as Cash Flow Hedge
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(972)	354
Other comprehensive income (loss) before reclassifications			(1,504)	(1,362)
Amounts reclassified from accumulated other comprehensive loss			2,476	(188)
Other comprehensive income (loss)			972	(1,550)
Balance, end of period	$ 0	$ (1,196)	$ 0	$ (1,196)

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 52,105	$ 61,338
Work-in-process	26,452	30,043
Finished goods	31,176	41,478
Total inventories	$ 109,733	$ 132,859

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Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 262,930
Foreign currency translation adjustment	2,851
Goodwill, ending balance	265,781
Advanced Connectivity Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	51,694
Foreign currency translation adjustment	0
Goodwill, ending balance	51,694
Elastomeric Material Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	142,030
Foreign currency translation adjustment	(176)
Goodwill, ending balance	141,854
Power Electronics Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	66,982
Foreign currency translation adjustment	3,027
Goodwill, ending balance	70,009
Other
Goodwill [Roll Forward]
Goodwill, beginning balance	2,224
Foreign currency translation adjustment	0
Goodwill, ending balance	$ 2,224

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Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 245,319	$ 243,589
Indefinite-lived other intangible asset	4,632	4,432
Total other intangible assets, gross carrying amount	249,951	248,021
Accumulated Amortization	117,133	89,074
Net Carrying Amount	128,186	154,515
Total other intangible assets, net carrying amount	132,818	158,947
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	149,891	149,317
Accumulated Amortization	58,935	39,018
Net Carrying Amount	90,956	110,299
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	82,102	80,938
Accumulated Amortization	50,776	45,190
Net Carrying Amount	31,326	35,748
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,986	11,994
Accumulated Amortization	6,676	4,361
Net Carrying Amount	5,310	7,633
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,340	1,340
Accumulated Amortization	746	505
Net Carrying Amount	$ 594	$ 835

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Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 15.4	$ 4.4	$ 26.7	$ 13.3
Annual Future Amortization Expense
Anticipated future amortization expense for the remainder of 2020	15.4		15.4
Anticipated future amortization expense for 2021	12.3		12.3
Anticipated future amortization expense for 2022	11.8		11.8
Anticipated future amortization expense for 2023	11.3		11.3
Anticipated future amortization expense for 2024	$ 9.9		$ 9.9

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Goodwill and Other Intangible Assets - Weighted Average Amortization Period by Intangible Asset Class (Details)	9 Months Ended
	Sep. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	5 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	5 years 6 months
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	4 years
Trademarks and trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	3 years 9 months 18 days
Covenants not to compete
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	1 year 3 months 18 days

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Earnings Per Share (Computation of Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income	$ 7,006	$ 23,387	$ 34,785	$ 76,079
Denominator:
Weighted-average shares outstanding - basic (in shares)	18,688,000	18,581,000	18,678,000	18,569,000
Effect of dilutive shares (in shares)	25,000	143,000	17,000	146,000
Weighted-average shares outstanding - dilutive (in shares)	18,713,000	18,724,000	18,695,000	18,715,000
Basic earnings per share (in dollars per share)	$ 0.37	$ 1.26	$ 1.86	$ 4.10
Diluted earnings per share (in dollars per share)	$ 0.37	$ 1.25	$ 1.86	$ 4.07
Anti-dilutive shares excluded (in shares)	32,501	3,173

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Capital Stock and Equity Compensation (Additional Information) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, measurement period (years)			3 years
Expected dividend yield (percent)			0.00%
Compensation expense	$ 1,600,000	$ 1,500,000	$ 4,300,000	$ 3,500,000
Performance-Based Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, awarded shares as a percentage of the original award amount (percent)			0.00%
Performance-Based Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, awarded shares as a percentage of the original award amount (percent)			200.00%
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	1,500,000	1,500,000	$ 4,600,000	4,400,000
Conversion ratio			1
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 0	$ 0	$ 1,000,000.0	$ 1,100,000
Conversion ratio			1
Vesting period			13 months

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Capital Stock and Equity Compensation (Monte Carlo Calculation Assumptions) (Details) - Performance-Based Restricted Stock Units	Feb. 12, 2020	Jun. 03, 2019	Feb. 07, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)	41.00%	39.70%	36.70%
Expected term (in years)	2 years 10 months 24 days	2 years 7 months 6 days	2 years 10 months 24 days
Risk-free interest rate (percent)	1.41%	1.78%	2.43%

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Capital Stock and Equity Compensation (Performance-Based Restricted Stock Awards) (Details) - Performance-Based Restricted Stock Units	9 Months Ended
	Sep. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding beginning balance (shares)	106,943
Awards granted (shares)	87,244
Stock issued (shares)	(75,486)
Awards forfeited (shares)	(5,866)
Awards outstanding ending balance (shares)	112,835

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Capital Stock and Equity Compensation (Time-Based Restricted Stock Awards) (Details) - Time-Based Restricted Stock Units	9 Months Ended
	Sep. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding beginning balance (shares)	101,685
Awards granted (shares)	58,288
Stock issued (shares)	(48,901)
Awards forfeited (shares)	(4,962)
Awards outstanding ending balance (shares)	106,110

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Capital Stock and Equity Compensation (Deferred Stock Units) (Details) - Deferred Stock Units	9 Months Ended
	Sep. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding beginning balance (shares)	7,150
Awards granted (shares)	9,400
Stock issued (shares)	(5,100)
Awards outstanding ending balance (shares)	11,450

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Debt (Additional Information) (Details)				3 Months Ended			6 Months Ended	9 Months Ended
	Oct. 16, 2020 USD ($)	Oct. 02, 2020 USD ($)	Feb. 17, 2017 USD ($) fiscal_quarter	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Mar. 31, 2017 USD ($)
Debt Instrument [Line Items]
Borrowings under revolving credit facility				$ 60,000,000			$ 60,000,000	$ 60,000,000		$ 123,000,000
Interest expense incurred on outstanding debt				$ 3,400,000		$ 1,800,000		$ 6,300,000	$ 6,100,000
Revolving Credit Facility | Third Amended Credit Agreement
Debt Instrument [Line Items]
Debt instrument, term			5 years
Maximum borrowing capacity			$ 450,000,000.0
Additional borrowing capacity			$ 175,000,000.0
Variable rate lower range, basis spread			0.375%
Variable rate higher range, basis spread			0.75%
Leverage ratio			3.25
One-time leverage ratio maximum option			3.50
One-time leverage ratio maximum option, number of fiscal quarters for period of increased maximum leverage ratio | fiscal_quarter			3
ICR covenant limit			3.00
Debt instrument, leverage ratio, maximum			2.75	2.75			2.75	2.75
Borrowings				$ 0	$ 150,000,000.0		$ 0
Discretionary principal payments on revolving credit facility				163,000,000.0				$ 213,000,000.0
Borrowings under revolving credit facility				60,000,000.0			60,000,000.0	60,000,000.0
Outstanding line of credit issuance costs				$ 700,000			$ 700,000	$ 700,000		$ 1,200,000
Revolving Credit Facility | Third Amended Credit Agreement | Minimum
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage			0.20%
Revolving Credit Facility | Third Amended Credit Agreement | Maximum
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage			0.30%
Allowed restricted payments, including cash dividends			$ 20,000,000.0
Revolving Credit Facility | Third Amended Credit Agreement | Eurocurrency loans
Debt Instrument [Line Items]
Line of credit, LIBOR rate, minimum basis spread			1.375%
Line of credit, LIBOR rate, maximum basis spread			1.75%
Revolving Credit Facility | Third Amended Credit Agreement | Interest rate swap contract
Debt Instrument [Line Items]
Hedged balance on debt instrument											$ 75,000,000.0
Revolving Credit Facility | Third Amended Credit Agreement | Interest rate swap contract | Subsequent Event
Debt Instrument [Line Items]
Settlement of interest rate swap		$ 2,400,000
Revolving Credit Facility | Third Amended Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Revolving Credit Facility | Third Amended Credit Agreement | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%					1.375%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 450,000,000.0
Additional borrowing capacity	$ 175,000,000.0
Variable rate lower range, basis spread	0.625%
Variable rate higher range, basis spread	1.00%
Leverage ratio	3.25
One-time leverage ratio maximum option	3.50
ICR covenant limit	3.00
One-time leverage ratio maximum option, period of increased maximum leverage ratio	1 year
Amount of unrestricted domestic cash and cash equivalents permitted to net against indebtedness in calculation of total net leverage ratio (up to)	50,000,000.0
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Subsequent Event | Minimum
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage	0.25%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Subsequent Event | Maximum
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage	0.35%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Subsequent Event | Eurocurrency loans
Debt Instrument [Line Items]
Line of credit, LIBOR rate, minimum basis spread	1.625%
Line of credit, LIBOR rate, maximum basis spread	2.00%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Federal Funds Rate | Subsequent Event
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | Subsequent Event
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%

XML

Leases (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Finance lease obligation	$ 4,433	$ 4,540
Finance lease right-of-use assets	6,307	6,280
Germany
Lessee, Lease, Description [Line Items]
Finance lease obligation	4,400	4,500
Finance lease right-of-use assets	6,300	6,300
Finance lease right-of-use asset, accumulated amortization	$ 4,200	$ 3,800

XML

Leases (Lease Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating leases expense	$ 846	$ 843	$ 2,268	$ 2,336
Short-term leases expense	154	68	384	150
Payments on operating lease obligations	$ 719	$ 719	$ 2,187	$ 2,243

XML

Leases (Assets and Liabilities Balance Related to Finance and Operating Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Finance lease right-of-use assets	$ 6,307	$ 6,280
Operating lease right-of-use assets	4,039	4,656
Finance lease obligations, current portion	4,433	400
Finance lease obligations, non-current portion	0	4,140
Total finance lease obligations	4,433	4,540
Operating lease obligations, current portion	2,135	2,343
Operating lease obligations, non-current portion	2,023	2,334
Total operating lease obligations	$ 4,158	$ 4,677
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent

XML

Leases (Lease Payments) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Finance Leases Signed
2020	$ 139
2021	4,584
2022	193
2023	186
2024	0
Thereafter	0
Total lease payments	5,102
Less: Interest	(124)
Present Value of Net Future Minimum Lease Payments	4,978
Finance Leases Less: Leases Not Yet Commenced
2020	0
2021	(193)
2022	(193)
2023	(186)
2024	0
Thereafter	0
Total lease payments	(572)
Less: Interest	27
Present Value of Net Future Minimum Lease Payments	(545)
Total Finance Leases
2020	139
2021	4,391
2022	0
2023	0
2024	0
Thereafter	0
Total lease payments	4,530
Less: Interest	(97)
Total finance lease obligations	4,433	$ 4,540
Operating Leases Signed
2020	674
2021	2,002
2022	1,096
2023	454
2024	211
Thereafter	5
Total lease payments	4,442
Less: Interest	(236)
Present Value of Net Future Minimum Lease Payments	4,206
Operating Leases Less: Leases Not Yet Commenced
2020	(2)
2021	(12)
2022	(17)
2023	(15)
2024	(5)
Thereafter	0
Total lease payments	(51)
Less: Interest	3
Present Value of Net Future Minimum Lease Payments	(48)
Total Operating Leases
2020	672
2021	1,990
2022	1,079
2023	439
2024	206
Thereafter	5
Total lease payments	4,391
Less: Interest	(233)
Total operating lease obligations	$ 4,158	$ 4,677

XML

Leases (Lease Term and Discount Rate) (Details)	Sep. 30, 2020
Leases [Abstract]
Finance leases, weighted average remaining lease term	9 months 18 days
Finance leases, weighted average discount rate (percent)	3.00%
Operating leases, weighted average remaining lease term	2 years 3 months 18 days
Operating leases, weighted average discount rate (percent)	4.84%

XML

Pension Benefits and Other Postretirement Benefits (Additional Information) (Details)		2 Months Ended		3 Months Ended				9 Months Ended		12 Months Ended
	Oct. 17, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) plan	Jul. 27, 2020 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Number of qualified noncontributory defined benefit plans | plan										2
Pension surplus investment balance		$ 12,790,000	$ 12,790,000	$ 4,337,000		$ 12,790,000		$ 4,337,000		$ 12,790,000
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Contributions				0			$ 0	0	$ 0
Pension Benefits | Merged Plan
Defined Benefit Plan Disclosure [Line Items]
Payment for settlement	$ 123,300,000		$ 1,300,000
Lump sum distributions		$ 38,900,000
Settlement charge					$ 0	$ 53,200,000
Pension surplus investment balance				9,300,000				9,300,000			$ 7,400,000
Contributions									$ 0
Pension Benefits | Union Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions				0
Additional contributions required to make for remainder of fiscal year				$ 0				$ 0

XML

Pension Benefits and Other Postretirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items]
Settlement benefit	$ 0	$ 0	$ 55	$ 0
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	223	1,790	685	5,359
Expected return of plan assets	(394)	(2,187)	(1,180)	(6,571)
Amortization of prior service credit	0	0	0	0
Amortization of net loss	99	476	327	1,386
Settlement benefit	0	0	(63)	0
Net periodic benefit (credit) cost	(72)	79	(231)	174
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	17	12	51	48
Interest cost	10	14	30	44
Expected return of plan assets	0	0	0	0
Amortization of prior service credit	(28)	(252)	(84)	(758)
Amortization of net loss	0	0	0	0
Settlement benefit	0	0	0	0
Net periodic benefit (credit) cost	$ (1)	$ (226)	$ (3)	$ (666)

XML

Commitments and Contingencies (Details) - Connecticut Voluntary Corrective Action Program $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
Loss Contingencies [Line Items]
Environmental remediation expense incurred	$ 1.7
Accrual for future remediation efforts	$ 1.0

XML

Commitments and Contingencies (Summary of Change in Number of Asbestos Claims Outstanding) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($) claim
Liability for Asbestos and Environmental Claims [Roll Forward]
Claims outstanding as of January 1, 2020	592
New claims filed	88
Pending claims concluded	(122)
Claims outstanding as of September 30, 2020	558
Number of claims dismissed	103
Number of claims settled	19
Settlements | $	$ 5.4

XML

Commitments and Contingencies (Schedule of Total Estimated Liability for Asbestos) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Asbestos-related liabilities	$ 85,547	$ 85,880
Asbestos-related insurance receivables	$ 78,316	$ 78,316

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate (percent)	8.10%	18.60%	23.10%	18.50%
Unrecognized tax benefits	$ 14.9		$ 14.9
Unrecognized tax benefits that would affect the effective tax rate if recognized	14.5		14.5
Unrecognized tax benefits, accrual for payment of interest	$ 1.1		$ 1.1

XML

Operating Segment Information - Income by Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Net sales	$ 201,944	$ 221,842	$ 591,911	$ 704,492
Operating income (loss)	8,794	29,885	47,361	95,898
Total Americas
Segment Reporting Information [Line Items]
Net sales	57,866	71,796	179,989	210,738
United States
Segment Reporting Information [Line Items]
Net sales	54,672	68,255	170,508	200,487
Other Americas
Segment Reporting Information [Line Items]
Net sales	3,194	3,541	9,481	10,251
Total APAC
Segment Reporting Information [Line Items]
Net sales	100,541	107,551	274,864	346,172
China
Segment Reporting Information [Line Items]
Net sales	72,640	72,409	190,056	236,309
Other APAC
Segment Reporting Information [Line Items]
Net sales	27,901	35,142	84,808	109,863
Total EMEA
Segment Reporting Information [Line Items]
Net sales	43,537	42,495	137,058	147,582
Germany
Segment Reporting Information [Line Items]
Net sales	19,596	18,818	63,358	70,676
Other EMEA
Segment Reporting Information [Line Items]
Net sales	23,941	23,677	73,700	76,906
Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Net sales	63,714	78,983	199,207	251,982
Operating income (loss)	4,981	13,778	26,067	45,301
Advanced Connectivity Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	18,555	18,478	52,029	49,612
Advanced Connectivity Solutions | United States
Segment Reporting Information [Line Items]
Net sales	18,058	17,671	49,907	47,014
Advanced Connectivity Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	497	807	2,122	2,598
Advanced Connectivity Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	38,229	51,211	122,328	174,200
Advanced Connectivity Solutions | China
Segment Reporting Information [Line Items]
Net sales	26,641	37,398	86,846	129,220
Advanced Connectivity Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	11,588	13,813	35,482	44,980
Advanced Connectivity Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	6,930	9,294	24,850	28,170
Advanced Connectivity Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	1,973	4,251	8,354	12,674
Advanced Connectivity Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	4,957	5,043	16,496	15,496
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	86,444	94,940	241,596	281,596
Operating income (loss)	7,372	17,995	21,884	46,752
Elastomeric Material Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	32,250	43,684	105,007	132,792
Elastomeric Material Solutions | United States
Segment Reporting Information [Line Items]
Net sales	29,733	41,232	98,373	126,067
Elastomeric Material Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	2,517	2,452	6,634	6,725
Elastomeric Material Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	45,166	40,846	106,488	117,133
Elastomeric Material Solutions | China
Segment Reporting Information [Line Items]
Net sales	34,016	26,461	72,550	72,726
Elastomeric Material Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	11,150	14,385	33,938	44,407
Elastomeric Material Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	9,028	10,410	30,101	31,671
Elastomeric Material Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	5,450	3,868	13,883	10,775
Elastomeric Material Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	3,578	6,542	16,218	20,896
Power Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	47,927	43,131	139,868	154,607
Operating income (loss)	(4,691)	(3,358)	(3,929)	(976)
Power Electronics Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	5,937	8,126	19,784	24,060
Power Electronics Solutions | United States
Segment Reporting Information [Line Items]
Net sales	5,901	8,115	19,562	23,800
Power Electronics Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	36	11	222	260
Power Electronics Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	15,862	13,911	42,514	48,221
Power Electronics Solutions | China
Segment Reporting Information [Line Items]
Net sales	11,229	7,642	28,657	29,989
Power Electronics Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	4,633	6,269	13,857	18,232
Power Electronics Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	26,128	21,094	77,570	82,326
Power Electronics Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	12,074	10,528	40,829	46,780
Power Electronics Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	14,054	10,566	36,741	35,546
Other
Segment Reporting Information [Line Items]
Net sales	3,859	4,788	11,240	16,307
Operating income (loss)	1,132	1,470	3,339	4,821
Other | Total Americas
Segment Reporting Information [Line Items]
Net sales	1,124	1,508	3,169	4,274
Other | United States
Segment Reporting Information [Line Items]
Net sales	980	1,237	2,666	3,606
Other | Other Americas
Segment Reporting Information [Line Items]
Net sales	144	271	503	668
Other | Total APAC
Segment Reporting Information [Line Items]
Net sales	1,284	1,583	3,534	6,618
Other | China
Segment Reporting Information [Line Items]
Net sales	754	908	2,003	4,374
Other | Other APAC
Segment Reporting Information [Line Items]
Net sales	530	675	1,531	2,244
Other | Total EMEA
Segment Reporting Information [Line Items]
Net sales	1,451	1,697	4,537	5,415
Other | Germany
Segment Reporting Information [Line Items]
Net sales	99	171	292	447
Other | Other EMEA
Segment Reporting Information [Line Items]
Net sales	1,352	1,526	4,245	4,968
Recognized over time
Segment Reporting Information [Line Items]
Net sales	54,226	50,839	157,908	176,648
Recognized over time | Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Net sales	219	0	219	0
Recognized over time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	2,612	3,429	8,106	9,400
Recognized over time | Power Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	47,827	42,906	139,288	153,827
Recognized over time | Other
Segment Reporting Information [Line Items]
Net sales	3,568	4,504	10,295	13,421
Recognized at a point in time
Segment Reporting Information [Line Items]
Net sales	147,718	171,003	434,003	527,844
Recognized at a point in time | Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Net sales	63,495	78,983	198,988	251,982
Recognized at a point in time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	83,832	91,511	233,490	272,196
Recognized at a point in time | Power Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	100	225	580	780
Recognized at a point in time | Other
Segment Reporting Information [Line Items]
Net sales	$ 291	$ 284	$ 945	$ 2,886

XML

Operating Segment Information - Contract Assets By Operating Segments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Contract assets	$ 22,061	$ 22,455
Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Contract assets	186	0
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Contract assets	1,090	1,077
Power Electronics Solutions
Segment Reporting Information [Line Items]
Contract assets	19,132	19,471
Other
Segment Reporting Information [Line Items]
Contract assets	$ 1,653	$ 1,907

XML

Supplemental Financial Information - Restructuring and Impairment Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Supplemental Income Statement Elements [Abstract]
Restructuring charges	$ 9,027	$ (1)	$ 9,027	$ 948
Impairment charges	386	581	386	1,537
Total restructuring and impairment charges	$ 9,413	$ 580	$ 9,413	$ 2,485

XML

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	$ 9,413	$ 580	$ 9,413	$ 2,485
Restructuring charges	9,027	(1)	9,027	948
Impairment charges	386	581	386	1,537
Lease income	0	57	0	932
Depreciation on leased assets	0	179	0	1,729
Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges			8,754
Facility Consolidation
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 0		$ 900
PES
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	6,300		6,300
ACS
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	2,900		2,900
EMS
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	$ 200		$ 200

XML

Supplemental Financial Information - Severance Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring Reserve [Roll Forward]
Provisions	$ 9,027	$ (1)	$ 9,027	$ 948
Manufacturing Footprint Optimization Restructuring Severance
Restructuring Reserve [Roll Forward]
Beginning balance			0
Provisions			8,754
Payments			(5)
Foreign currency translation adjustment			(78)
Ending balance	$ 8,671		$ 8,671

XML

Supplemental Financial Information - Other Operating (Income) Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Supplemental Income Statement Elements [Abstract]
Lease income	$ 0	$ (57)	$ 0	$ (932)
Depreciation on leased assets	0	179	0	1,729
Loss on sale or disposal of property, plant and equipment	(4)	2	49	278
Economic incentive grants	0	0	(145)	0
Total other operating (income) expense, net	$ (4)	$ 124	$ (96)	$ 1,075

XML

Supplemental Financial Information - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Supplemental Income Statement Elements [Abstract]
Interest on revolving credit facility	$ 612	$ 1,873	$ 3,079	$ 6,303
Interest rate swap settlements	2,769	(40)	3,191	(241)
Line of credit fees	112	125	430	378
Debt issuance amortization costs	138	138	414	414
Interest on finance leases	35	29	100	92
Interest income	(135)	(398)	(724)	(1,262)
Other	22	20	49	39
Total interest expense, net	$ 3,553	$ 1,747	$ 6,539	$ 5,723

XML

Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201602Member