Operating Segment Information

6 Months Ended

Jun. 30, 2022

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 June 30, 2022
Net sales - recognized over time	$	70,636	$	2,698	$	4,280	$	77,614
Net sales - recognized at a point in time	70,529		102,392		1,435		174,356
Total net sales	$	141,165	$	105,090	$	5,715	$	251,970
Operating income	$	8,775	$	12,601	$	2,020	$	23,396
Three Months Ended June 30, 2021
Net sales - recognized over time	$	57,248	$	3,758	$	4,761	$	65,767
Net sales - recognized at a point in time	83,178		85,573		388		169,139
Total net sales	$	140,426	$	89,331	$	5,149	$	234,906
Operating income	$	18,288	$	15,637	$	1,820	$	35,745
Six Months Ended June 30, 2022
Net sales - recognized over time	$	141,122	$	5,744	$	8,653	$	155,519
Net sales - recognized at a point in time	133,196		209,586		1,935		344,717
Total net sales	$	274,318	$	215,330	$	10,588	$	500,236
Operating income	$	10,079	$	29,598	$	3,610	$	43,287
Six Months Ended June 30, 2021
Net sales - recognized over time	$	112,062	$	6,445	$	9,973	$	128,480
Net sales - recognized at a point in time	160,256		174,735		700		335,691
Total net sales	$	272,318	$	181,180	$	10,673	$	464,171
Operating income	$	33,137	$	35,714	$	4,087	$	72,938

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 June 30, 2022
United States	$	31,731	$	44,179	$	1,145	$	77,055
Other Americas	998		2,429		199		3,626
Total Americas	32,729		46,608		1,344		80,681
China	41,243		31,398		1,944		74,585
Other APAC	23,382		6,529		762		30,673
Total APAC	64,625		37,927		2,706		105,258
Germany	17,373		7,736		211		25,320
Other EMEA	26,438		12,819		1,454		40,711
Total EMEA	43,811		20,555		1,665		66,031
Total net sales	$	141,165	$	105,090	$	5,715	$	251,970
Three Months Ended June 30, 2021
United States	$	21,824	$	40,666	$	1,353	$	63,843
Other Americas	790		2,815		171		3,776
Total Americas	22,614		43,481		1,524		67,619
China	49,841		27,427		1,026		78,294
Other APAC	25,432		5,410		648		31,490
Total APAC	75,273		32,837		1,674		109,784
Germany	21,651		5,889		217		27,757
Other EMEA	20,888		7,124		1,734		29,746
Total EMEA	42,539		13,013		1,951		57,503
Total net sales	$	140,426	$	89,331	$	5,149	$	234,906

(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
Six Months Ended June 30, 2022
United States	$	60,938	$	89,568	$	1,988	$	152,494
Other Americas	1,971		5,016		367		7,354
Total Americas	62,909		94,584		2,355		159,848
China	77,322		62,385		3,758		143,465
Other APAC	43,479		13,245		1,270		57,994
Total APAC	120,801		75,630		5,028		201,459
Germany	37,926		16,474		481		54,881
Other EMEA	52,682		28,642		2,724		84,048
Total EMEA	90,608		45,116		3,205		138,929
Total net sales	$	274,318	$	215,330	$	10,588	$	500,236
Six Months Ended June 30, 2021
United States	$	45,621	$	78,398	$	2,025	$	126,044
Other Americas	1,384		5,309		387		7,080
Total Americas	47,005		83,707		2,412		133,124
China	108,264		55,258		2,419		165,941
Other APAC	48,804		14,698		1,368		64,870
Total APAC	157,068		69,956		3,787		230,811
Germany	26,814		16,165		351		43,330
Other EMEA	41,431		11,352		4,123		56,906
Total EMEA	68,245		27,517		4,474		100,236
Total net sales	$	272,318	$	181,180	$	10,673	$	464,171

Revenue from Contracts with Customers

We have contract assets primarily related to unbilled revenue for revenue recognized related to products that are deemed to have no alternative use whereby we have the right to payment. Revenue is recognized in advance of billing to the customer in these circumstances as billing is typically performed at the time of shipment to the customer. The unbilled revenue is included in contract assets on the condensed consolidated statements of financial position.

Contract assets by operating segment were as follows:

(Dollars in thousands)	June 30, 2022		December 31, 2021
Advanced Electronics Solutions	$	32,653	$	31,398
Elastomeric Material Solutions	2,080		2,082
Other	3,640		3,130
Total contract assets	$	38,373	$	36,610

We did not have any contract liabilities as of June 30, 2022 or December 31, 2021. No impairment losses were recognized for the three or six-month periods ended June 30, 2022 and 2021, respectively, on any receivables or contract assets arising from our contracts with customers.