Operating Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

Our reporting structure is comprised of the following strategic operating segments: AES and EMS. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment.

Our AES operating segment designs, develops, manufactures and sells circuit materials, ceramic substrate materials, busbars and cooling solutions for applications in electric and hybrid electric vehicles (EV/HEV), wireless infrastructure (i.e., power amplifiers, antennas and small cells), automotive (i.e., advanced driver assistance systems (ADAS), telematics and thermal solutions), aerospace and defense (i.e., antenna systems, communication systems and phased array radar systems), mass transit, clean energy (i.e., variable frequency drives, renewable energy), connected devices (i.e., mobile internet devices and thermal solutions) and wired infrastructure (i.e., 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, 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 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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2021
Net sales - recognized over time	$	64,277	$	4,612	$	4,829	$	73,718
Net sales - recognized at a point in time	70,714		93,339		492		164,545
Total net sales	$	134,991	$	97,951	$	5,321	$	238,263
Operating income	$	13,945	$	18,104	$	1,750	$	33,799
Three Months Ended September 30, 2020
Net sales - recognized over time	$	48,046	$	2,612	$	3,568	$	54,226
Net sales - recognized at a point in time	63,595		83,832		291		147,718
Total net sales	$	111,641	$	86,444	$	3,859	$	201,944
Operating income	$	290	$	7,372	$	1,132	$	8,794
Nine Months Ended September 30, 2021
Net sales - recognized over time	$	176,339	$	11,057	$	14,802	$	202,198
Net sales - recognized at a point in time	230,970		268,074		1,192		500,236
Total net sales	$	407,309	$	279,131	$	15,994	$	702,434
Operating income	$	47,082	$	53,818	$	5,837	$	106,737
Nine Months Ended September 30, 2020
Net sales - recognized over time	$	139,507	$	8,106	$	10,295	$	157,908
Net sales - recognized at a point in time	199,568		233,490		945		434,003
Total net sales	$	339,075	$	241,596	$	11,240	$	591,911
Operating income	$	22,138	$	21,884	$	3,339	$	47,361

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

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2021
United States	$	22,119	$	42,338	$	1,510	$	65,967
Other Americas	950		2,415		195		3,560
Total Americas	23,069		44,753		1,705		69,527
China	47,153		34,789		1,059		83,001
Other APAC	17,608		6,177		645		24,430
Total APAC	64,761		40,966		1,704		107,431
Germany	24,620		5,892		175		30,687
Other EMEA	22,541		6,340		1,737		30,618
Total EMEA	47,161		12,232		1,912		61,305
Total net sales	$	134,991	$	97,951	$	5,321	$	238,263
Three Months Ended September 30, 2020
United States	$	23,959	$	29,733	$	980	$	54,672
Other Americas	533		2,517		144		3,194
Total Americas	24,492		32,250		1,124		57,866
China	37,870		34,016		754		72,640
Other APAC	16,221		11,150		530		27,901
Total APAC	54,091		45,166		1,284		100,541
Germany	14,047		5,450		99		19,596
Other EMEA	19,011		3,578		1,352		23,941
Total EMEA	33,058		9,028		1,451		43,537
Total net sales	$	111,641	$	86,444	$	3,859	$	201,944

(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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Nine Months Ended September 30, 2021
United States	$	67,740	$	120,736	$	3,535	$	192,011
Other Americas	2,334		7,724		582		10,640
Total Americas	70,074		128,460		4,117		202,651
China	155,417		90,047		3,478		248,942
Other APAC	66,412		20,875		2,013		89,300
Total APAC	221,829		110,922		5,491		338,242
Germany	51,434		22,057		526		74,017
Other EMEA	63,972		17,692		5,860		87,524
Total EMEA	115,406		39,749		6,386		161,541
Total net sales	$	407,309	$	279,131	$	15,994	$	702,434
Nine Months Ended September 30, 2020
United States	$	69,469	$	98,373	$	2,666	$	170,508
Other Americas	2,344		6,634		503		9,481
Total Americas	71,813		105,007		3,169		179,989
China	115,503		72,550		2,003		190,056
Other APAC	49,339		33,938		1,531		84,808
Total APAC	164,842		106,488		3,534		274,864
Germany	49,183		13,883		292		63,358
Other EMEA	53,237		16,218		4,245		73,700
Total EMEA	102,420		30,101		4,537		137,058
Total net sales	$	339,075	$	241,596	$	11,240	$	591,911

(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, 2021		December 31, 2020
Advanced Electronics Solutions	$	27,940	$	24,199
Elastomeric Material Solutions	1,965		887
Other	2,806		1,489
Total contract assets	$	32,711	$	26,575

We did not have any contract liabilities as of September 30, 2021 or December 31, 2020. No impairment losses were recognized for the three or nine-month periods ended September 30, 2021 and 2020, respectively, on any receivables or contract assets arising from our contracts with customers.