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, 2022

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, a 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 November 4, 2022 was 18,811,874.

ROGERS CORPORATION

FORM 10-Q

September 30, 2022

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	26
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
	Item 4.	Controls and Procedures	36
Part II – Other Information
	Item 1.	Legal Proceedings	37
	Item 6.	Exhibits	37
		Signatures	38

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net sales	$	247,231	$	238,263	$	747,467	$	702,434
Cost of sales	169,167		146,609		497,491		431,448
Gross margin	78,064		91,654		249,976		270,986
Selling, general and administrative expenses	50,653		47,886		164,496		135,258
Research and development expenses	9,140		7,531		25,450		22,195
Restructuring and impairment charges	373		1,007		1,119		3,260
Other operating (income) expense, net	(578)		1,431		(2,852)		3,536
Operating income	18,476		33,799		61,763		106,737
Equity income in unconsolidated joint ventures	1,162		1,773		4,237		5,884
Pension settlement charges	—		(534)		—		(534)
Other income (expense), net	977		(469)		1,563		3,738
Interest expense, net	(2,942)		(441)		(5,559)		(1,452)
Income before income tax expense	17,673		34,128		62,004		114,373
Income tax expense	2,835		8,999		12,683		29,371
Net income	$	14,838	$	25,129	$	49,321	$	85,002
Basic earnings per share	$	0.79	$	1.34	$	2.62	$	4.54
Diluted earnings per share	$	0.78	$	1.33	$	2.60	$	4.51
Shares used in computing:
Basic earnings per share	18,818		18,740		18,804		18,727
Diluted earnings per share	18,999		18,874		18,997		18,831

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net income	$	14,838	$	25,129	$	49,321	$	85,002
Foreign currency translation adjustment	(35,035)		(8,126)		(80,383)		(18,627)
Pension and other postretirement benefits:
Actuarial net loss incurred, net of tax (Note 4)	—		—		(15)		—
Amortization of loss, net of tax (Note 4)	87		52		260		173
Other comprehensive income (loss)	(34,948)		(8,074)		(80,138)		(18,454)
Comprehensive income (loss)	$	(20,110)	$	17,055	$	(30,817)	$	66,548

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, 2022		December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	236,461	$	232,296
Accounts receivable, less allowance for credit losses of $1,227 and $1,223	162,929		163,092
Contract assets	41,809		36,610
Inventories	173,610		133,384
Prepaid income taxes	4,008		1,921
Asbestos-related insurance receivables, current portion	3,361		3,176
Other current assets	15,500		13,586
Total current assets	637,678		584,065
Property, plant and equipment, net of accumulated depreciation of $368,270 and $367,850	374,984		326,967
Investments in unconsolidated joint ventures	12,974		16,328
Deferred income taxes	41,873		32,671
Goodwill	338,312		370,189
Other intangible assets, net of amortization	150,148		176,353
Pension assets	5,461		5,123
Asbestos-related insurance receivables, non-current portion	55,516		59,391
Other long-term assets	8,844		27,479
Total assets	$	1,625,790	$	1,598,566
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	57,200	$	64,660
Accrued employee benefits and compensation	35,978		48,196
Accrued income taxes payable	4,046		9,632
Asbestos-related liabilities, current portion	4,048		3,841
Other accrued liabilities	36,644		37,620
Total current liabilities	137,916		163,949
Borrowings under revolving credit facility	290,000		190,000
Pension and other postretirement benefits liabilities	1,495		1,618
Asbestos-related liabilities, non-current portion	60,167		64,491
Non-current income tax	8,013		7,131
Deferred income taxes	24,599		29,451
Other long-term liabilities	13,747		23,031
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,812 and 18,730 shares issued and outstanding	18,812		18,730
Additional paid-in capital	165,276		163,583
Retained earnings	1,031,146		981,825
Accumulated other comprehensive loss	(125,381)		(45,243)
Total shareholders' equity	1,089,853		1,118,895
Total liabilities and shareholders' equity	$	1,625,790	$	1,598,566

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, 2022		September 30, 2021
Operating Activities:
Net income	$	49,321	$	85,002
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	34,352		31,121
Equity compensation expense	11,576		13,147
Deferred income taxes	(14,076)		(1,267)
Equity in undistributed income of unconsolidated joint ventures	(4,237)		(5,884)
Dividends received from unconsolidated joint ventures	4,677		4,965
Pension settlement charges (benefits)			534
Pension and other postretirement benefits	23		(300)
(Gain) loss on sale or disposal of property, plant and equipment	(15)		(673)
Impairment charges	212		385
UTIS fire fixed asset and inventory write-offs	199		1,254
Provision (benefit) for credit losses	331		(310)
Changes in assets and liabilities:
Accounts receivable	(23,759)		(32,254)
Proceeds from insurance/government subsidies related to operations	1,153		264
Contract assets	(9,320)		(6,136)
Inventories	(47,500)		(19,386)
Pension and postretirement benefit contributions	(141)		(156)
Other current assets	(4,919)		(144)
Accounts payable and other accrued expenses	(12,083)		27,495
Other, net	16,040		8,458
Net cash provided by operating activities	1,834		106,115
Investing Activities:
Acquisition of business, net of cash received	(1,300)		—
Capital expenditures	(87,000)		(43,411)
Proceeds from the sale of property, plant and equipment, net	—		714
Proceeds from insurance claims	7,252		—
Net cash used in investing activities	(81,048)		(42,697)
Financing Activities:
Proceeds from borrowings under revolving credit facility	100,000		—
Repayment of debt principal and finance lease obligations	(202)		(29,655)
Payments of taxes related to net share settlement of equity awards	(10,751)		(2,752)
Proceeds from issuance of shares to employee stock purchase plan	950		1,563
Net cash provided by (used in) financing activities	89,997		(30,844)
Effect of exchange rate fluctuations on cash	(6,618)		(3,458)
Net (decrease) increase in cash and cash equivalents	4,165		29,116
Cash and cash equivalents at beginning of period	232,296		191,785
Cash and cash equivalents at end of period	$	236,461	$	220,901
Supplemental Disclosures:
Accrued capital additions	$	9,330	$	6,447
Cash paid during the year for:
Interest, net of amounts capitalized	$	5,491	$	1,285
Income taxes	$	19,617	$	25,867

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Capital Stock
Balance, beginning of period	$	18,811	$	18,722	$	18,730	$	18,677
Shares issued for vested restricted stock units, net of shares withheld for taxes	1		1		69		29
Shares issued for employee stock purchase plan	—		6		6		13
Shares issued to directors	—		—		7		10
Balance, end of period	18,812		18,729		18,812		18,729
Additional Paid-In Capital
Balance, beginning of period	161,885		154,330		163,583		147,961
Shares issued for vested restricted stock units, net of shares withheld for taxes	(129)		(69)		(10,820)		(2,781)
Shares issued for employee stock purchase plan	—		853		944		1,550
Shares issued to directors	—		—		(7)		(10)
Equity compensation expense	3,520		4,753		11,576		13,147
Balance, end of period	165,276		159,867		165,276		159,867
Retained Earnings
Balance, beginning of period	1,016,308		933,565		981,825		873,692
Net income	14,838		25,129		49,321		85,002
Balance, end of period	1,031,146		958,694		1,031,146		958,694
Accumulated Other Comprehensive Loss
Balance, beginning of period	(90,433)		(29,955)		(45,243)		(19,575)
Other comprehensive income (loss)	(34,948)		(8,074)		(80,138)		(18,454)
Balance, end of period	(125,381)		(38,029)		(125,381)		(38,029)
Total Shareholders’ Equity	$	1,089,853	$	1,099,261	$	1,089,853	$	1,099,261

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, 2021. Refer to the discussion below for our restructuring activities significant accounting policy.

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 had a pension surplus investment balance, which was accounted for as an available-for-sale investment as of June 2020. At the end of April, 2022, the entirety of the balance was paid out as a one-time discretionary contribution to all participants of the Rogers Employees Savings Investment Plan. 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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	—	$	—	$	—	$	—

	Available-for-Sale Investment at Fair Value as of December 31, 2021
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,638	$	—	$	—	$	6,638

(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 December 31, 2021. The fair value of this investment approximated its carrying value as of December 31, 2021.

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

8

	Derivative Instruments at Fair Value as of September 30, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	25	$	—	$	25
Copper derivative contracts	$	—	$	189	$	—	$	189

	Derivative Instruments at Fair Value as of December 31, 2021
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(16)	$	—	$	(16)
Copper derivative contracts	$	—	$	1,344	$	—	$	1,344

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position.

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 and commodity pricing risk (primarily related to copper). 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.

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.

Foreign Currency

During the three months ended September 30, 2022, 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 income (expense), net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

9

As of September 30, 2022, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	14,173,529
EUR/USD	€	4,984,006
KRW/USD	₩	8,081,640,000

Commodity

As of September 30, 2022, we had 12 outstanding contracts to hedge exposure related to the purchase of copper in our AES operating segment. These contracts are held with financial institutions and are intended to offset rising copper prices and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other income (expense), net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2022, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2022 - December 2022	69 metric tons per month
January 2023 - March 2023	69 metric tons per month
April 2023 - June 2023	69 metric tons per month
July 2023 - September 2023	69 metric tons per month

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(101)	$	(909)	$	(1,019)	$	(2,131)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(171)	$	(775)	$	(969)	$	3,085

10

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)		Total
Balance as of December 31, 2021	$	(35,641)	$	(9,602)	$	(45,243)
Other comprehensive income (loss) before reclassifications	(80,383)		(15)		(80,398)
Amounts reclassified from accumulated other comprehensive loss	—		260		260
Net current-period other comprehensive income (loss)	(80,383)		245		(80,138)
Balance as of September 30, 2022	$	(116,024)	$	(9,357)	$	(125,381)
Balance as of December 31, 2020	$	(10,571)	$	(9,004)	$	(19,575)
Other comprehensive income (loss) before reclassifications	(18,627)		—		(18,627)
Amounts reclassified from accumulated other comprehensive loss	—		173		173
Net current-period other comprehensive income (loss)	(18,627)		173		(18,454)
Balance as of September 30, 2021	$	(29,198)	$	(8,831)	$	(38,029)

(1) Net of taxes of $2,056 and $2,125 as of September 30, 2022 and December 31, 2021, respectively. Net of taxes of $1,902 and $1,951 as of September 30, 2021 and December 31, 2020, 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, 2022		December 31, 2021
Raw materials	$	81,797	$	60,208
Work-in-process	44,235		29,078
Finished goods	47,578		44,098
Total inventories	$	173,610	$	133,384

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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
December 31, 2021	$	119,567	$	248,398	$	2,224	$	370,189
Purchase accounting adjustment	—		(925)		—		(925)
Foreign currency translation adjustment	(9,552)		(21,400)		—		$	(30,952)
September 30, 2022	$	110,015	$	226,073	$	2,224	$	338,312

11

Other Intangible Assets

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

	September 30, 2022						December 31, 2021
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	186,799	$	82,103	$	104,696	$	198,095	$	77,870	$	120,225
Technology	82,844		55,471		27,373		88,445		54,900		33,545
Trademarks and trade names	22,979		9,676		13,303		25,504		8,968		16,536
Covenants not to compete	2,452		1,535		917		2,693		1,137		1,556
Total definite-lived other intangible assets	295,074		148,785		146,289		314,737		142,875		171,862
Indefinite-lived other intangible asset	3,859		—		3,859		4,491		—		4,491
Total other intangible assets	$	298,933	$	148,785	$	150,148	$	319,228	$	142,875	$	176,353

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

Amortization expense was $4.1 million and $3.1 million for the three months ended September 30, 2022 and 2021, respectively, and $12.6 million and $9.4 million for the nine months ended September 30, 2022 and 2021, respectively. The estimated future amortization expense is $3.9 million for the remainder of 2022 and $14.9 million, $13.6 million, $11.9 million and $11.3 million for 2023, 2024, 2025 and 2026, respectively.

The weighted average amortization period as of September 30, 2022, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	7.8 years
Technology	3.5 years
Trademarks and trade names	2.1 years
Covenants not to compete	1.0 years
Total definite-lived other intangible assets	6.4 years

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Numerator:
Net income	$	14,838	$	25,129	$	49,321	$	85,002
Denominator:
Weighted-average shares outstanding - basic	18,818		18,740		18,804		18,727
Effect of dilutive shares	181		134		193		104
Weighted-average shares outstanding - diluted	18,999		18,874		18,997		18,831
Basic earnings per share	$	0.79	$	1.34	$	2.62	$	4.54
Diluted earnings per share	$	0.78	$	1.33	$	2.60	$	4.51

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, 2022 and 2021, no shares and 1,994 shares were excluded, respectively.

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Note 8 – Capital Stock and Equity Compensation

Equity Compensation

Performance-Based Restricted Stock Units

As of September 30, 2022, we had performance-based restricted stock units from 2021 and 2020 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, except as noted below in Chief Executive Officer’s 2021 Equity Award Grants. 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 2021:

	February 10, 2021
Expected volatility	51.0%
Expected term (in years)	2.9
Risk-free interest rate	0.18%

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, 2022 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2021	114,554
Awards granted	26,819
Stock issued	(60,053)
Awards cancelled	(1,860)
Awards outstanding as of September 30, 2022	79,460

We recognized $1.1 million and $2.6 million of compensation expense for performance-based restricted stock units for the three months ended September 30, 2022 and 2021, respectively. We recognized $3.3 million and $5.8 million of compensation expense for performance-based restricted stock units for the nine months ended September 30, 2022 and 2021, respectively.

Time-Based Restricted Stock Units

As of September 30, 2022, we had time-based restricted stock unit awards from 2022, 2021, 2020 and 2019 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, except as noted below in Chief Executive Officer’s 2021 Equity Award Grants. 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.

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A summary of activity of the outstanding time-based restricted stock units for the nine months ended September 30, 2022 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2021	96,989
Awards granted	63,150
Stock issued	(47,600)
Awards cancelled	(3,766)
Awards outstanding as of September 30, 2022	108,773

We recognized $2.4 million and $2.0 million of compensation expense for time-based restricted stock units for the three months ended September 30, 2022 and 2021, respectively. We recognized $7.0 million and $5.8 million of compensation expense for time-based restricted stock units for the nine months ended September 30, 2022 and 2021, respectively.

Chief Executive Officer’s 2021 Equity Award Grants

The terms of the performance-based and time-based restricted stock unit awards granted to our Chief Executive Officer (CEO), Bruce Hoechner, in February 2021 were modified from the standard language provisions from prior year awards to allow for accelerated vesting of the full awards provided certain criteria are met. Accounting Standards Codification (ASC) Topic 718: Compensation—Stock Compensation requires companies that allow for accelerated vesting of employees’ unvested equity upon retirement to recognize the expense from the date of grant to the date the employee becomes eligible to retire – regardless of whether or not the employee actually retires when he or she is eligible to retire. As a result, the $4.0 million of expense in 2021 related to the awards granted on February 10, 2021 to our CEO, which provide for immediate vesting upon retirement, were expensed from the date of the grant, February 10, 2021, through his retirement eligibility date, November 9, 2021.

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, 2022 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2021	9,500
Awards granted	4,800
Stock issued	(7,450)
Awards outstanding as of September 30, 2022	6,850

We recognized no compensation expense for deferred stock units for the three months ended September 30, 2022 and 2021, respectively. We recognized $1.3 million and $1.2 million of compensation expense for deferred stock units for the nine months ended September 30, 2022 and 2021, respectively.

Note 9 – Debt

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

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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.

On March 5, 2021, the U.K. Financial Conduct Authority (“FCA”) publicly announced that immediately after December 31, 2021, publication of most Euro, Swiss Franc, Japanese Yen and Pound Sterling LIBOR settings will permanently cease. On October 15, 2021, Rogers Corporation and JPMorgan Chase Bank, N.A. entered into an amendment (Amendment No. 1) to the Fourth Amended Credit Agreement to adopt a new benchmark interest rate to replace the discontinued LIBOR reference rates.

Borrowings under the Fourth Amended Credit Agreement can be made as alternate base rate loans, euro-currency loans, or RFR 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. RFR loans bears interest based upon the Sterling Overnight Index Average (SONIA) plus 0.0326% plus a spread of 162.5 to 200.0 basis points. Based on our leverage ratio as of September 30, 2022, the spread was 175.0 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding, we incur an annual fee of 25 to 35 basis points (based upon our leverage ratio), paid quarterly, 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.

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 the 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 September 30, 2022.

We borrowed $30.0 million under the Fourth Amended Credit Agreement for the three months ended September 30, 2022, and $100.0 million for the nine months ended September 30, 2022. There were no borrowings for the three and nine months ended September 30, 2021. We are not required to make any quarterly principal payments under the Fourth Amended Credit Agreement. We made no payments for the three and nine months ended September 30, 2022, and no payments for the three months ended September 30, 2021. We made $25.0 million of discretionary principal payments on our revolving credit facility for the nine months ended September 30, 2021.

We had $290.0 million outstanding borrowings under our revolving credit facility as of September 30, 2022, and $190.0 million as of December 31, 2021. We had $1.1 million and $1.6 million of outstanding line of credit issuance costs as of September 30, 2022 and December 31, 2021, respectively, which will be amortized over the life of the Fourth Amended Credit Agreement.

Note 10 - Leases

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, 2022 and 2021. 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, 2022 and 2021. 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, 2022 and 2021, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option.

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.

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Our expenses and payments for operating leases were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Operating leases expense	$	652	$	594	$	1,896	$	2,054
Short-term leases expense	$	168	$	97	$	420	$	227
Payments on operating lease obligations	$	663	$	610	$	2,231	$	1,945

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, 2022		December 31, 2021
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,629	$	389
Operating lease right-of-use assets	Other long-term assets	$	5,688	$	17,161
Finance lease obligations, current portion	Other accrued liabilities	$	389	$	198
Finance lease obligations, non-current portion	Other long-term liabilities	$	1,227	$	209
Total finance lease obligations		$	1,616	$	407
Operating lease obligations, current portion	Other accrued liabilities	$	2,016	$	2,810
Operating lease obligations, non-current portion	Other long-term liabilities	$	4,112	$	14,965
Total operating lease obligations		$	6,128	$	17,775

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, 2022:

	Finance			Operating
(Dollars in thousands)	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect
2022	92	(4)	88	678	(19)	659
2023	564	(51)	513	2,446	(441)	2,005
2024	381	(56)	325	1,364	(479)	885
2025	381	(56)	325	1,021	(498)	523
2026	379	(56)	323	947	(429)	518
Thereafter	343	(126)	217	5,535	(2,973)	2,562
Total lease payments	2,140	(349)	1,791	11,991	(4,839)	7,152
Less: Interest	(204)	29	(175)	(2,333)	1,309	(1,024)
Present Value of Net Future Minimum Lease Payments	1,936	(320)	1,616	9,658	(3,530)	6,128

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	4.6 years	6.1 years
Weighted Average Discount Rate	3.76%	4.40%

In April 2022, we successfully negotiated the termination of a lease signed for the facility in South Korea, which went into effect in October 2021, in exchange for an approximately $0.4 million settlement fee. The termination of this lease reduced our operating lease right-of-use assets and lease liabilities by approximately $9.2 million each.

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Note 11 – Pension Benefits and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of September 30, 2022, we had one qualified noncontributory defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which was frozen and ceased accruing benefits in 2013.

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 Termination Surplus Funds

On October 17, 2019, our Chief Executive Officer approved 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)). We provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020.

Upon completion of the pension termination and settlement processes for the Merged Plan, we had a $9.7 million remaining pension surplus investment balance. In July 2020 and December 2021, we transferred $9.2 million of the pension surplus investment balance to a suspense account held within a trust for the Rogers Employee Savings and Investment Plan (RESIP), a 401(k) plan for domestic employees. In December 2021, we transferred the remaining pension investment balance not initially transferred, to the RESIP trust suspense account. The investment balance not transferred to the trust suspense account will be used to pay any final plan expenses, after which the remainder of these funds will be moved to the RESIP trust suspense account. The funds in the RESIP trust suspense account have been, and will continue to be, used to fund certain employer contributions. There was no remaining balance for the pension surplus investments as of September 30, 2022.

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)	2022		2021		2022		2021		2022		2021		2022		2021
Service cost	$	—	$	—	$	—	$	—	$	10	$	16	$	30	$	46
Interest cost	191		182		573		550		8		7		24		19
Expected return of plan assets	(340)		(389)		(1,020)		(1,169)		—		—		—		—
Amortization of prior service credit	—		—		—		—		—		(25)		—		(73)
Amortization of net loss	111		95		333		291		—		—		—		—
Net periodic benefit (credit) cost	$	(38)	$	(112)	$	(114)	$	(328)	$	18	$	(2)	$	54	$	(8)

Employer Contributions

There were no required or voluntary contributions made to the Union Plan or the Merged Plan for each of the three and nine- months ended September 30, 2022 and 2021. Additionally, we are not required to make additional contributions to the Union Plan for the remainder of 2022.

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- months ended September 30, 2022 and 2021, 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 $1.9 million of aggregate remediation costs through September 30, 2022, and the accrual for future remediation efforts is $0.8 million.

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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, 2022:

	Asbestos Claims
Claims outstanding as of January 1	543
New claims filed	101
Pending claims concluded(1)	(107)
Claims outstanding as of September 30, 2022	537

(1) For the nine months ended September 30, 2022, 94 claims were dismissed and 13 claims were settled. Settlements totaled approximately $1.7 million for the nine months ended September 30, 2022.

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, 2022 and 2021, 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, 2022		December 31, 2021
Asbestos-related liabilities	$	64,215	$	68,332
Asbestos-related insurance receivables	$	58,877	$	62,567

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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 16.0% and 26.4% for the three months ended September 30, 2022 and 2021, respectively. The decrease from the third quarter of 2021 was primarily due to the beneficial impact of a decrease in current quarter accruals of reserves for uncertain tax positions. Our effective income tax rate was 20.5% and 25.7% for the nine months ended September 30, 2022 and 2021, respectively. The decrease from the first nine months of 2021 was primarily due to the beneficial impact of a decrease in current quarter accruals of reserves for uncertain tax positions.

The total amount of unrecognized tax benefits as of September 30, 2022 was $6.5 million, of which $5.9 million would affect our effective tax rate if recognized. Additionally, the balance of unrecognized tax benefits as of September 30, 2022 also included $0.6 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of September 30, 2022, we had $0.7 million accrued for the payment of interest.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2018 through 2022 are subject to examination by the tax authorities. With few exceptions, we are no longer subject to U.S. federal, state, local and foreign examinations by tax authorities for the years before 2018.

Note 14 – 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 the general industrial market, as well as elastomer floats for level sensing in fuel tank, motor, and storage tank 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.

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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, 2022
Net sales - recognized over time	$	72,969	$	3,346	$	4,110	$	80,425
Net sales - recognized at a point in time	57,639		107,637		1,530		166,806
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
Operating income	$	2,263	$	14,322	$	1,891	$	18,476
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
Nine Months Ended September 30, 2022
Net sales - recognized over time	$	214,091	$	9,090	$	12,763	$	235,944
Net sales - recognized at a point in time	190,835		317,223		3,465		511,523
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
Operating income	$	12,342	$	43,920	$	5,501	$	61,763
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

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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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2022
United States	$	33,969	$	46,772	$	1,087	$	81,828
Other Americas	843		2,534		247		3,624
Total Americas	34,812		49,306		1,334		85,452
China	36,126		37,349		2,290		75,765
Other APAC	16,544		5,173		508		22,225
Total APAC	52,670		42,522		2,798		97,990
Germany	19,727		7,310		393		27,430
Other EMEA	23,399		11,845		1,115		36,359
Total EMEA	43,126		19,155		1,508		63,789
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
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

(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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Nine Months Ended September 30, 2022
United States	$	94,907	$	136,340	$	3,075	$	234,322
Other Americas	2,814		7,550		614		10,978
Total Americas	97,721		143,890		3,689		245,300
China	113,448		99,734		6,048		219,230
Other APAC	60,023		18,418		1,778		80,219
Total APAC	173,471		118,152		7,826		299,449
Germany	57,653		23,784		874		82,311
Other EMEA	76,081		40,487		3,839		120,407
Total EMEA	133,734		64,271		4,713		202,718
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
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

(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, 2022		December 31, 2021
Advanced Electronics Solutions	$	36,015	$	31,398
Elastomeric Material Solutions	2,467		2,082
Other	3,327		3,130
Total contract assets	$	41,809	$	36,610

We did not have any contract liabilities as of September 30, 2022 or December 31, 2021. No impairment losses were recognized for the three or nine-month periods ended September 30, 2022 and 2021, 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, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Restructuring charges
Manufacturing footprint optimization	$	373	$	622	$	907	$	2,875
Total restructuring charges	373		622		907		2,875
Impairment charges
Fixed asset impairment charges	—		385		212		385
Total impairment charges	—		385		212		385
Total restructuring and impairment charges	$	373	$	1,007	$	1,119	$	3,260

Our AES operating segment incurred $0.4 million and $1.1 million of restructuring and impairment charges for the three and nine months ended September 30, 2022, respectively, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 2022. Our AES operating segment incurred $1.0 million and $3.2 million of restructuring and impairment charges, respectively, for the three and nine months ended September 30, 2021, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 2021.

Restructuring Charges & Related Expenses - Manufacturing Footprint Optimization

During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our AES operating segment, in order to achieve greater cost competitiveness as well as align capacity with end market demand. The majority of the restructuring activities were completed in the first half of 2021. We incurred an immaterial amount of restructuring charges and related expenses for the three and nine months ended September 30, 2022, including severance and related benefits. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2022:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2021	$	1,395
Provisions	363
Payments	(1,479)
Foreign currency translation adjustment	(111)
Balance as of September 30, 2022	$	168

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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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
UTIS fire
Fixed assets write-offs	$	—	$	—	$	—	$	891
Inventory charges	(1)		43		199		363
Professional services	369		577		1,295		2,171
Lease obligations	91		60		369		600
Lease impairments	—		495		—		495
Compensation & benefits	562		614		1,931		1,458
Third-party property claims	—		4,650		—		4,650
Other	2		—		15		76
Insurance recoveries	(1,604)		(5,017)		(6,646)		(6,495)
Total UTIS fire	(581)		1,422		(2,837)		4,209
(Gain) loss on sale or disposal of property, plant and equipment	3		9		(15)		(673)
Total other operating (income) expense, net	$	(578)	$	1,431	$	(2,852)	$	3,536

In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea, which manufactures eSorba® polyurethane foams used in portable electronics and display applications. The site was safely evacuated and there were no reported injuries; however, there was extensive damage to the manufacturing site and some damage to nearby property. Operations in South Korea will be disrupted into the first half of 2023.

In connection with the UTIS fire, we recognized insurance recoveries of $1.6 million and $6.6 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three and nine months ended September 30, 2022, respectively. We incurred $0.4 million and $1.3 million for various professional services for the three and nine months ended September 30, 2022, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.9 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three and nine months ended September 30, 2022, respectively.

We recognized fixed asset write-offs and inventory charges of $0.9 million and $0.4 million, respectively, related to property destroyed in the fire for the nine months ended September 30, 2021. Additionally, we recognized a $4.7 million contingent liability pertaining to damage to nearby property and a $0.5 million contingent liability pertaining to our obligations for the fire damage to the building in connection with the underlying lease agreement. We incurred $0.6 million and $2.2 million of fees for various professional services for the three and nine months ended September 30, 2021, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.5 million of compensation and benefits for UTIS manufacturing employees, subsequent to the fire, for the three and nine months ended September 30, 2021, respectively. In connection with the UTIS fire, we recognized insurance recoveries of $5.0 million and $6.5 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees, less the applicable $0.3 million deductible, for the three and nine months ended September 30, 2021, respectively.

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest on revolving credit facility	$	2,831	$	—	$	5,014	$	106
Line of credit fees	118		292		409		856
Debt issuance amortization costs	178		178		536		536
Interest income	(175)		(64)		(462)		(409)
Other	(10)		35		62		363
Total interest expense, net	$	2,942	$	441	$	5,559	$	1,452

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Note 16 – Mergers and Acquisitions

Acquisition of Silicone Engineering Ltd.

On October 8, 2021, we acquired Silicone Engineering Ltd. (Silicone Engineering), a leading European manufacturer of silicone material solutions based in Blackburn, England, for a combined purchase price of $172.3 million for the company, net of cash acquired, and its facility. As part of the agreement, there was a $4.1 million holdback, upon which we could issue claims against until six months after the close of the acquisition, at which point in time the holdback amount, less any holdback claims, be paid to the previous owners of Silicone Engineering. In April 2022, we paid $1.3 million of the holdback in exchange for a 6-month extension of the holdback period. In October 2022, we paid back the remaining of the holdback, less an immaterial amount for claims. Substantially all of our $190.0 million in borrowings under our existing credit facility in October 2021 were used to fund the transaction, with the remaining amounts being used for general corporate purposes. Silicone Engineering expands our existing advanced silicones platform in our EMS operating segment and provides us a European Center of Excellence to service customers requiring premium silicone solutions for applications in the EV/HEV, industrial, medical and other markets.

Pro-Forma Financial Information

The following unaudited pro forma financial information presents the combined results of operations of Rogers and Silicone Engineering as if the Silicone Engineering acquisition had occurred on January 1, 2020. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the Silicone Engineering acquisition been completed as of January 1, 2020 and should not be taken as indicative of our future consolidated results of operations.

	Three Months Ended		Nine Months Ended
(Dollars in thousands)	September 30, 2021		September 30, 2021
Net sales	$	248,679	$	733,404
Net income	$	26,419	$	88,271

Terminated Merger Agreement with DuPont

On November 1, 2021, we entered into a definitive merger agreement to be acquired by DuPont de Nemours, Inc. (DuPont) in an all-cash transaction at a price of $277.00 per share of the Company’s capital stock. The merger agreement provided for the acquisition of Rogers Corporation by DuPont through the merger of Cardinalis Merger Sub, Inc., a wholly owned subsidiary of DuPont, with and into Rogers Corporation, with Rogers Corporation surviving the merger as a wholly owned subsidiary of DuPont. Company shareholders approved the merger agreement at a special shareholder meeting held on January 25, 2022. The merger agreement provided both Rogers Corporation and DuPont with a right to terminate the merger agreement if the merger had not closed on or before November 1, 2022. Consummation of the merger was subject to various customary closing conditions, including regulatory approval by the State Administration for Market Regulation of China (SAMR). As of November 1, 2022, the parties had not received regulatory approval from SAMR. On November 1, 2022, the Company received from DuPont a notice of termination of the merger agreement. Pursuant to the terms of the merger agreement, the Company received a regulatory termination fee from DuPont in the amount of $162.5 million, before taxes and transaction-related fees.

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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:

•our terminated merger with DuPont de Nemours, Inc. (DuPont), which may cause us to incur substantial costs that may adversely affect our financial results and operations and the market price of our capital stock, including as a result of litigation;

•the duration and impacts of the novel coronavirus (COVID-19) global pandemic and efforts to contain its transmission and distribute vaccines, including the effect of these factors on our business, suppliers, supply chains, 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;

•failure to successfully execute on the Company’s long-term growth strategy as a standalone company;

•uncertain business, economic and political conditions in the United States (U.S.) and abroad, particularly in China, South Korea, Germany, Belgium, England and Hungary where we maintain significant manufacturing, sales or administrative operations;

•the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations, the imposition of tariffs and other trade restrictions, as well as the potential for U.S.-China supply chain decoupling;

•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 and willingness 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;

•the impact of sanctions, export controls and other foreign asset or investment restriction;

•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, 2021 (the Annual Report) and our

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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.

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 two strategic operating segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS). 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, portable electronics and telecommunications industries, we sell into a variety of other markets including general industrial, aerospace and defense, mass transit, clean energy and connected devices.

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 maintain 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.

If we are able to successfully execute on our growth strategy, we see an opportunity to double our annual revenues over the next five years. This robust outlook is supported by our participation in a number of fast-growing markets and by our strong competitive positions in these markets. Advanced mobility markets, which are comprised of EV/HEV and ADAS, are expected to grow at the fastest rate. Third-party analysis projects that the EV/HEV market will grow at compound annual growth rate of more than 25% over the next five years and ADAS at a double-digit rate over that time period. Within the EV/HEV market, we believe our advanced battery cell pads, ceramic substrates and power interconnects provide multiple content opportunities to capitalize on this growth. In each of these areas we have secured a number of design wins and have a strong pipeline, which provides confidence in our growth outlook. In the ADAS market, we continue to build on our current position with new design wins, including those for next-generation automotive radar systems. Other markets with a strong growth trajectory include aerospace and defense, clean energy and portable electronics. We expect that they will contribute to our growth strategy’s aim of doubling revenues over the next five years.

To support our revenue growth opportunity during the five-year strategic planning period, we have initiated a manufacturing expansion plan, which includes expanding capacity at existing Rogers’ manufacturing facilities, relocating existing manufacturing capabilities to enhance operational efficiency and adding new manufacturing facilities. This expansion plan will require a significant increase in capital spending together with an associated increase in operating expenses, as compared to historic capital spending and operating expenses over the previous five years.

Terminated Merger with DuPont

On November 1, 2021, we entered into a definitive merger agreement to be acquired by DuPont de Nemours, Inc. (DuPont) in an all-cash transaction at a price of $277.00 per share of the Company’s capital stock. The merger agreement provided for the acquisition of Rogers Corporation by DuPont through the merger of Cardinalis Merger Sub, Inc., a wholly owned subsidiary of DuPont, with and into Rogers Corporation, with Rogers Corporation surviving the merger as a wholly owned subsidiary of DuPont. Company shareholders approved the merger agreement at a special shareholder meeting held on January 25, 2022. The

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merger agreement provided both Rogers Corporation and DuPont with a right to terminate the merger agreement if the merger had not closed on or before November 1, 2022. Consummation of the merger was subject to various customary closing conditions, including regulatory approval by the State Administration for Market Regulation of China (SAMR). As of November 1, 2022, the parties had not received regulatory approval from SAMR. On November 1, 2022, the Company received from DuPont a notice of termination of the merger agreement. Pursuant to the terms of the merger agreement, the Company received a regulatory termination fee from DuPont in the amount of $162.5 million, before taxes and transaction-related fees.

COVID-19 Update

The global COVID-19 pandemic has affected and continues to affect Rogers’ business, operations and demand from customers with the emergence and spread of new variants of the virus, such as Delta and Omicron, although to a lesser extent than in 2020, mainly due to the rollout of vaccinations. In response to the outbreak, Rogers prioritized the safety and well-being of its employees—including incentivizing vaccinations, 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, while at the same time taking actions to preserve business continuity. Our non-manufacturing employees transitioned seamlessly to remote working arrangements and are effectively collaborating both internally and with our customers. In some cases, based on local conditions, non-manufacturing employees have returned to their worksites. Surges in COVID-19 cases in China resulted in lockdowns as well as various restrictions. These measures have not disrupted our manufacturing efforts, however, they are causing logistics challenges. 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 nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year.

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 2022 as compared to the third quarter of 2021, our net sales increased approximately 3.8% to $247.2 million, our gross margin decreased approximately 690 basis points to 31.6% from 38.5%, and operating income decreased approximately 670 basis points to 7.5% from 14.2%. In the first nine months of 2022 as compared to the first nine months of 2021, our net sales increased approximately 6.4% to $747.5 million, our gross margin decreased approximately 520 basis points to 33.4% from 38.6%, and operating income decreased approximately 690 basis points to 8.3% from 15.2%.

•With respect to other operating (income) expense, net, we recognized income of $0.6 million and expense of $1.4 million in the third quarter of 2022 and 2021, respectively, and income of $2.8 million and expense of $4.2 million in the first nine months of 2022 and 2021, respectively, primarily related to the financial impacts from the fire at our UTIS manufacturing facility in Ansan, South Korea.

•Our net sales and gross margin results were tempered in the first nine months of 2022 due to continued raw material shortages and supply chain disruptions, which we expect to continue into the fourth quarter of 2022.

•We incurred $3.4 million and $18.3 million of expenses related to the terminated merger with DuPont mainly associated with a discretionary RESIP contribution, retention awards and professional services expenses, in the third quarter of 2022 and first nine months of 2022, respectively.

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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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Gross margin	31.6	%	38.5	%	33.4	%	38.6	%
Selling, general and administrative expenses	20.5	%	20.1	%	22.0	%	19.3	%
Research and development expenses	3.7	%	3.2	%	3.4	%	3.2	%
Restructuring and impairment charges	0.2	%	0.4	%	0.1	%	0.5	%
Other operating (income) expense, net	(0.3)	%	0.6	%	(0.4)	%	0.4	%
Operating income	7.5	%	14.2	%	8.3	%	15.2	%
Equity income in unconsolidated joint ventures	0.5	%	0.7	%	0.6	%	0.8	%
Pension settlement charges	—	%	(0.2)	%	—	%	(0.1)	%
Other income (expense), net	0.3	%	(0.2)	%	0.1	%	0.6	%
Interest expense, net	(1.2)	%	(0.2)	%	(0.7)	%	(0.2)	%
Income before income tax expense	7.1	%	14.3	%	8.3	%	16.3	%
Income tax expense	1.1	%	3.8	%	1.7	%	4.2	%
Net income	6.0	%	10.5	%	6.6	%	12.1	%

Net Sales and Gross Margin
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net sales	$	247,231		$	238,263		$	747,467		$	702,434
Gross margin	$	78,064		$	91,654		$	249,976		$	270,986
Percentage of net sales	31.6		%	38.5		%	33.4		%	38.6		%

Net sales increased by 3.8% in the third quarter of 2022 compared to the third quarter of 2021. Our AES and EMS operating segments had a net sales decrease of 3.2% and a net sales increase of 13.3%, respectively. The increase in net sales was primarily due to higher net sales in the EV/HEV market in our AES operating segment and higher net sales in the general industrial market in our EMS operating segment. The increase was partially offset by lower net sales in the clean energy, aerospace and defense, wireless infrastructure and ADAS markets in our AES operating segment. Additionally, our EMS operating segment net sales increased by $9.8 million, or 4.1%, reflecting the impact from our acquisition of Silicone Engineering. Net sales were unfavorably impacted by foreign currency impacts of $11.8 million, or 5.0%, due to the depreciation in value of the euro, British pound and Chinese renminbi relative to the U.S. dollar.

Net sales increased by 6.4% in the first nine months of 2022 compared to the first nine months of 2021. Our AES and EMS operating segments had a net sales decrease of 0.6% and a net sales increase of 16.9%, respectively. The increase in net sales was primarily due to higher net sales in the EV/HEV market in our AES operating segment and higher net sales in the general industrial and EV/HEV markets in our EMS operating segment. The increase was partially offset by lower net sales in the wireless infrastructure, aerospace and defense, ADAS and clean energy markets in our AES operating segment and lower net sales in the portable electronics market in our EMS operating segment. Additionally, our EMS operating segment net sales increased by $32.0 million, or 4.6%, reflecting the impact from our acquisition of Silicone Engineering. Net sales were unfavorably impacted by foreign currency impacts of $22.8 million, or 3.2%, due to the depreciation in value of the euro, British pound and Chinese renminbi relative to the U.S. dollar.

Gross margin as a percentage of net sales decreased approximately 690 basis points to 31.6% in the third quarter of 2022 compared to 38.5% in the third quarter of 2021. Gross margin in the third quarter of 2022 was unfavorably impacted by higher fixed overhead expenses, unfavorable absorption of fixed overhead expenses, higher freight, duties and tariffs expenses, unfavorable productivity performance and unfavorable product mix in our AES and EMS operating segments, as well as

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unfavorable yield performance and a higher inventory reserves provision in our EMS operating segment and lower volume in our AES operating segment. This was partially offset by the favorable impacts of commercial actions taken in our AES and EMS operating segments, as well as higher volume in our EMS operating segment.

Gross margin as a percentage of net sales decreased approximately 520 basis points to 33.4% in the first nine months of 2022 compared to 38.6% in the first nine months of 2021. Gross margin in the first nine months of 2022 was unfavorably impacted by higher fixed overhead expenses, unfavorable yield performance and higher freight, duties and tariffs expenses in our AES and EMS operating segments, as well as unfavorable productivity performance and a higher inventory reserves provision in our EMS operating segment and unfavorable product mix, unfavorable absorption of fixed overhead costs and lower volume in our AES operating segment. This was partially offset by the favorable impacts of commercial actions taken in our AES and EMS operating segments, as well as higher volume and favorable absorption of fixed overhead costs in our EMS operating segments and a lower inventory reserves provision in our AES operating segment.

Supply constraints on raw material and labor availability moderated production levels for our EMS operating segment, creating operational inefficiencies, which negatively impacted our gross margin. Further, the continuation of the global semiconductor chip shortage and its impact on our customers’ ability to continue to manufacture has negatively impacted our net sales, particularly in the ADAS market segment, for our AES operating segment. The recent COVID-19 outbreaks, particularly in Asia, adversely impacted our customers’ ability to continue manufacturing operations, which in turn negatively impacted our net sales for both our AES and EMS operating segments in the first nine months of 2022. Additionally, the impacts of the war in Ukraine, including sanctions and export controls, have impacted the production efforts of suppliers for certain raw materials, both to us and our customers, which could potentially have an impact on our net sales, as well as our gross margin for our AES and EMS operating segments. The global supply chain disruptions experienced in 2022 to-date and their impacts to our net sales and gross margin are expected to continue further into 2022.

Selling, General and Administrative Expenses
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Selling, general and administrative expenses	$	50,653		$	47,886		$	164,496		$	135,258
Percentage of net sales	20.5		%	20.1		%	22.0		%	19.3		%

Selling, general and administrative (SG&A) expenses increased 5.8% in the third quarter of 2022 from the third quarter of 2021, primarily due to a $3.0 million increase in professional services, a $0.9 million increase in other intangible asset amortization expense, a $0.3 million increase in travel and entertainment expenses, a $0.2 million increase in depreciation expense and a $0.1 million increase in advertising expense, partially offset by a $1.3 million decrease in total compensation and benefits, a $0.7 million decrease in software expenses and a $0.2 million decrease in utility costs.

SG&A expenses increased 21.6% in the first nine months of 2022 from the first nine months of 2021, primarily due to a $13.4 million increase in professional services, a $8.5 million increase in total compensation and benefits, a $3.2 million increase in other intangible asset amortization expense, a $2.1 million increase in software expenses, a $1.6 million increase in travel and entertainment expenses and a $0.6 million increase in advertising expense, partially offset by a $0.4 million decrease in recruiting/relocation/training expenses and a $0.4 million decrease in utility costs.

The increase in total compensation and benefits was primarily due to a $1.8 million impact for retention awards issued in connection with the terminated DuPont merger, on a quarter-to-date basis, and a $6.5 million discretionary RESIP contribution and a $6.2 million impact for retention awards issued in connection with the terminated DuPont merger, on a year-to-date basis. The increase in professional services expense is primarily due to $1.5 million of expenses incurred related to the terminated merger with DuPont and $0.1 million of expenses incurred related to our acquisition of Silicone Engineering, on a quarter-to-date basis, and $5.4 million of expenses incurred related to the terminated merger with DuPont and $0.7 million of expenses incurred related to our acquisition of Silicone Engineering, on a year-to-date basis.

Research and Development Expenses
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Research and development expenses	$	9,140		$	7,531		$	25,450		$	22,195
Percentage of net sales	3.7		%	3.2		%	3.4		%	3.2		%

R&D expenses increased 21.4% in the third quarter of 2022 from the third quarter of 2021 due to increases in laboratory expenses, total compensation and professional services expense.

R&D expenses increased 14.7% in the first nine months of 2022 from the first nine months of 2021 due to increases in total compensation and benefits, travel and entertainment expenses, laboratory expenses and depreciation expense.

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Restructuring and Impairment Charges and Other Operating (Income) Expense, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Restructuring and impairment charges	$	373	$	1,007	$	1,119	$	3,260
Other operating (income) expense, net	$	(578)	$	1,431	$	(2,852)	$	3,536

We incurred restructuring charges and related expenses associated with our manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations. We recognized restructuring charges and related expenses pertaining to these restructuring projects of $0.4 million in the third quarter of 2022 and $0.9 million in the first nine months of 2022. For additional information, refer to “Note 15 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

With respect to other operating (income) expense, net, we recognized income of $0.6 million and expense of $1.4 million in the third quarter of 2022 and 2021, respectively, and income of $2.9 million and expense of $3.5 million in the first nine months of 2022 and 2021, respectively, primarily related to the financial impacts from the fire at our UTIS manufacturing facility in Ansan, South Korea. The impact in the third quarter of 2022 and the first nine months of 2022 primarily consisted of insurance recoveries, partially offset by professional service costs, compensation and benefits for certain of our UTIS employees, costs incurred under our manufacturing facility lease agreement and inventory charges. The impact in the third quarter of 2021 and the first nine months of 2021 primarily consisted of write-offs of fixed assets and inventory destroyed and/or damaged in the fire, professional service costs, costs incurred under our manufacturing facility lease agreement, and compensation and benefits for certain of our UTIS employees, partially offset by the recognition of insurance recoveries. For additional information, refer to “Note 15 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Equity Income in Unconsolidated Joint Ventures
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Equity income in unconsolidated joint ventures	$	1,162	$	1,773	$	4,237	$	5,884

As of September 30, 2022, 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 34.5% in the third quarter of 2022 from the third quarter of 2021, and decreased 28.0% in the first nine months of 2022 from the first nine months of 2021. On a quarter-to-date basis and a year-to-date basis, the decrease was due to lower net sales and unfavorable productivity performance for RIC and RIS.

Other Income (Expense), Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Pension settlement charges	$	—	$	(534)	$	—	$	(534)
Other income (expense), net	$	977	$	(469)	$	1,563	$	3,738

In the third quarter of 2021, we recorded a $0.5 million pre-tax settlement charge in connection with further 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)).

Other income (expense), net increased to income of $1.0 million in the third quarter of 2022 from expense of $0.5 million in the third quarter of 2021. On a quarter-to-date basis, the increase was due to favorable impacts from our foreign currency derivatives and favorable impacts from our copper derivative contracts.

Other income (expense), net decreased to income of $1.6 million in the first nine months of 2022 from income of $3.7 million in the first nine months of 2021. On a year-to-date basis, the decrease was due to unfavorable impacts from our copper derivative contracts, partially offset by favorable impacts from our foreign currency derivatives and favorable impacts from our foreign currency transactions.

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Interest Expense, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest expense, net	$	(2,942)	$	(441)	$	(5,559)	$	(1,452)

Interest expense, net, increased by $2.5 million in the third quarter of 2022 from the third quarter of 2021, and increased by $4.1 million in the first nine months of 2022 from the first nine months of 2021. The increases on quarter-to-date and year-to-date bases was primarily due to a higher 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, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Income tax expense	$	2,835		$	8,999		$	12,683		$	29,371
Effective tax rate	16.0		%	26.4		%	20.5		%	25.7		%

Our effective income tax rate was 16.0% and 26.4% for the three months ended September 30, 2022 and 2021, respectively. The decrease from the third quarter of 2021 was primarily due to the beneficial impact of a decrease in current quarter accruals of reserves for uncertain tax positions. Our effective income tax rate was 20.5% and 25.7% for the nine months ended September 30, 2022 and 2021, respectively. The decrease from the first nine months of 2021 was primarily due to the decrease in the current quarter accruals of reserves of unrecognized tax benefits.

Operating Segment Net Sales and Operating Income

Advanced Electronics Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net sales	$	130,608	$	134,991	$	404,926	$	407,309
Operating income	$	2,263	$	13,945	$	12,342	$	47,082

AES net sales decreased by 3.2% in the third quarter of 2022 compared to the third quarter of 2021. The decrease in net sales over the third quarter of 2021 was primarily driven by lower net sales in the clean energy, wireless infrastructure, aerospace and defense and ADAS markets, partially offset by higher net sales in the EV/HEV market. Net sales were unfavorably impacted by foreign currency fluctuations of $8.0 million, or 5.9%, due to the depreciation in value of the euro relative to the U.S. dollar.

AES net sales decreased by 0.6% in the first nine months of 2022 compared to the first nine months of 2021. The decrease in net sales over the first nine months of 2021 was primarily driven by lower net sales in the wireless infrastructure, aerospace and defense, ADAS and clean energy markets, partially offset by higher net sales in the EV/HEV market. Net sales were unfavorably impacted by foreign currency fluctuations of $16.3 million, or 4.0%, due to the depreciation in value of the euro relative to the U.S. dollar.

Operating income decreased by 83.8% in the third quarter of 2022 from the third quarter of 2021. The decrease in operating income was primarily due to unfavorable year-over-year changes in shared service operating expense allocations driven by costs incurred related to the terminated DuPont merger. The decrease in operating income was also due to higher fixed overhead expenses, unfavorable absorption of fixed overhead expenses, higher freight, duties and tariffs expenses, unfavorable productivity performance, unfavorable product mix and lower volume. This was partially offset by the favorable impacts of commercial actions taken. As a percentage of net sales, operating income in the third quarter of 2022 was 1.7%, an approximately 860 basis point decrease as compared to the 10.3% reported in the third quarter of 2021.

Operating income decreased by 73.8% in the first nine months of 2022 from the first nine months of 2021. The decrease in operating income was primarily due to unfavorable year-over-year changes in shared service operating expense allocations driven by costs incurred related to the terminated DuPont merger. The decrease in operating income was also due to higher fixed overhead expenses, unfavorable yield performance, higher freight, duties and tariffs expenses, unfavorable product mix, unfavorable absorption of fixed overhead costs and lower volume. This was partially offset by the favorable impacts of commercial actions taken and a lower inventory reserves provision. As a percentage of net sales, operating income in the first nine months of 2022 was 3.0%, an approximately 860 basis point decrease as compared to the 11.6% reported in the first nine months of 2021.

The continuation of the global semiconductor chip shortage and its impact on our customers’ ability to continue to manufacture has negatively impacted our net sales, particularly in the ADAS market segment. Further, the recent COVID-19 outbreaks,

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particularly in Asia, adversely impacted our customers’ ability to continue manufacturing operations, which in turn negatively impacted our net sales in the first nine months of 2022. Additionally, the impacts of the war in Ukraine, including sanctions and export controls, have impacted the production efforts of suppliers for certain raw materials, both to us and our customers, which could potentially have an impact on our net sales, as well as our gross margin. The global supply chain disruptions experienced in 2022 to-date and their impacts to our net sales and gross margin are expected to continue further into 2022.

Elastomeric Material Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net sales	$	110,983	$	97,951	$	326,313	$	279,131
Operating income	$	14,322	$	18,104	$	43,920	$	53,818

EMS net sales increased by 13.3% in the third quarter of 2022 compared to the third quarter of 2021. The increase in net sales over the third quarter of 2021 was primarily driven by $9.8 million in net sales, or 10.0%, reflecting the impact from our acquisition of Silicone Engineering, as well as higher net sales in the general industrial market. Net sales were unfavorably impacted by foreign currency fluctuations of $3.7 million, or 3.7%, due to the depreciation in value of the euro, British pound and Chinese renminbi relative to the U.S. dollar.

EMS net sales increased by 16.9% in the first nine months of 2022 compared to the first nine months of 2021. The increase in net sales over the first nine months of 2021 was primarily driven by $32.0 million in net sales, or 11.5%, reflecting the impact from our acquisition of Silicone Engineering, as well as higher net sales in the general industrial and EV/HEV markets, partially offset by lower net sales in the portable electronics market. Net sales were unfavorably impacted by foreign currency fluctuations of $6.2 million, or 2.2%, due to the depreciation in value of the euro, British pound and Chinese renminbi relative to the U.S. dollar.

Operating income decreased by 20.9% in the third quarter of 2022 from the third quarter of 2021. The decrease in operating income was primarily due to unfavorable year-over-year changes in shared service operating expense allocations driven by costs incurred related to the terminated DuPont merger. The decrease in operating income was also due to higher fixed overhead expenses, unfavorable yield performance, higher freight, duties and tariffs expenses, unfavorable productivity performance and a higher inventory reserves provision. This was partially offset by the favorable impacts of commercial actions taken and higher volume and favorable absorption of fixed overhead costs, in addition to a $2.0 million favorable change in charges/benefits related to the UTIS fire. As a percentage of net sales, operating income in the third quarter of 2022 was 12.9%, an approximately 560 basis point decrease as compared to the 18.5% reported in the third quarter of 2021.

Operating income decreased by 18.4% in the first nine months of 2022 from the first nine months of 2021. The decrease in operating income was primarily due to unfavorable year-over-year changes in shared service operating expense allocations driven by costs incurred related to the terminated DuPont merger. The decrease in operating income was also due to higher fixed overhead expenses, unfavorable yield performance, higher freight, duties and tariffs expenses, unfavorable productivity performance and a higher inventory reserves provision. This was partially offset by the favorable impacts of commercial actions taken, higher volume and favorable absorption of fixed overhead costs, in addition to a $7.0 million favorable change in charges/benefits related to the UTIS fire. As a percentage of net sales, operating income in the first nine months of 2022 was 13.5%, an approximately 580 basis point decrease as compared to the 19.3% reported in the first nine months of 2021.

Supply constraints on raw material and labor availability moderated production levels, creating operational inefficiencies, which negatively impacted our gross margin. Further, the recent COVID-19 outbreaks, particularly in Asia, adversely impacted our customers’ ability to continue manufacturing operations, which in turn negatively impacted our net sales in the first nine months of 2022. Additionally, the impacts of the war in Ukraine, including sanctions and export controls, have impacted the production efforts of suppliers for certain raw materials, both to us and our customers, which could potentially have an impact on our net sales, as well as our gross margin. The global supply chain disruptions experienced in 2022 to-date and their impacts to our net sales and gross margin are expected to continue further into 2022.

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Other

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net sales	$	5,640	$	5,321	$	16,228	$	15,994
Operating income	$	1,891	$	1,750	$	5,501	$	5,837

Net sales in this segment increased by 6.0% in the third quarter of 2022 from the third quarter of 2021. The increase in net sales over the third quarter of 2021 was primarily driven by higher net sales in the general industrial market.

Net sales in this segment increased by 1.5% in the first nine months of 2022 from the first nine months of 2021. The increase in net sales over the first nine months of 2021 was primarily driven by higher net sales in the general industrial market.

Operating income increased 8.1% in the third quarter of 2022 compared to the third quarter of 2021. The increase in operating income was primarily driven by favorable productivity performance, favorable yield performance and higher volume, partially offset by unfavorable absorption of fixed overhead costs and unfavorable product mix.

Operating income decreased 5.8% in the first nine months of 2022 compared to the first nine months of 2021. The decrease in operating income was primarily driven by unfavorable product mix and unfavorable absorption of fixed overhead costs, partially offset by favorable productivity performance, favorable yield performance and higher volume.

As a percentage of net sales, operating income in the third quarter of 2022 was 33.5%, a 60 basis point increase as compared to 32.9% in the third quarter of 2021. As a percentage of net sales, operating income in the first nine months of 2022 was 33.9%, a 260 basis point decrease as compared to the 36.5% reported in the first nine months of 2021.

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, 2022		December 31, 2021
United States	$	117,338	$	76,621
Europe	34,178		56,034
Asia	84,945		99,641
Total cash and cash equivalents	$	236,461	$	232,296

Approximately $119.1 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of September 30, 2022. We did not make any changes in the nine months ended September 30, 2022 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.

(Dollars in thousands)	September 30, 2022		December 31, 2021
Key Financial Position Accounts:
Cash and cash equivalents	$	236,461	$	232,296
Accounts receivable, net	$	162,929	$	163,092
Inventories	$	173,610	$	133,384
Borrowings under revolving credit facility	$	290,000	$	190,000

Changes in key financial position accounts and other significant changes in our statements of financial position from December 31, 2021 to September 30, 2022 were as follows:

•Accounts receivable, net decreased 0.1% to $162.9 million as of September 30, 2022 from $163.1 million as of December 31, 2021. The decrease from year-end was primarily due to the receipt or settlement of $6.3 million in recognized UTIS fire insurance receivables and a $3.8 million decrease in our income taxes receivable, partially offset by an increase in days sales outstanding, higher net sales at the end of the third quarter of 2022 compared to at the end of 2021.

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•Inventories increased 30.2% to $173.6 million as of September 30, 2022, from $133.4 million as of December 31, 2021, primarily driven by raw material cost increases as well as the ramp up of raw material purchases and production efforts to meet anticipated demand.

•Borrowings under revolving credit facility were $290.0 million as of September 30, 2022 from $190.0 million as of December 31, 2021. This was as a result of $100.0 million of borrowings under our revolving credit facility during the first nine months of 2022. For additional information regarding this facility 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, 2022		September 30, 2021
Key Cash Flow Measures:
Net cash provided by operating activities	$	1,834	$	106,115
Net cash used in investing activities	$	(81,048)	$	(42,697)
Net cash provided by (used in) financing activities	$	89,997	$	(30,844)

As of September 30, 2022, cash and cash equivalents were $236.5 million as compared to $232.3 million as of December 31, 2021, an increase of $4.2 million, or 1.8%. This increase was primarily due to $100.0 million in borrowings under our revolving credit facility, partially offset by $87.0 million in capital expenditures and $10.8 million in tax payments related to net share settlement of equity awards.

Following the end of the third quarter, on November 1, 2022, the Company received from DuPont a notice of termination of the merger agreement, and pursuant to the terms of the merger agreement, the Company received a regulatory termination fee from DuPont in the amount of $162.5 million.

In 2022, we expect capital spending to be in the range of approximately $120.0 million to $130.0 million. We plan to fund our capital spending in 2022 with cash from operations and cash on-hand, as well as our existing revolving credit facility, if necessary.

Restrictions on Payment of Dividends

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 the 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 September 30, 2022.

Contingencies

During the third quarter of 2022, 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.

Critical Accounting Policies

There were no material changes in our critical accounting policies during the third quarter of 2022.

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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 2022. 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, 2022. 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, 2022.

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 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.
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 and Chief Financial Officer (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 and Chief Financial Officer (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.
101	The following materials from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022 formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and September 30, 2021, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and September 30, 2021, (iii) Condensed Consolidated Statements of Financial Position as of September 30, 2022 and December 31, 2021, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and September 30, 2021, (v) Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2022 and September 30, 2021, (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, 2022, 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/ Ramakumar Mayampurath

Ramakumar Mayampurath

Senior Vice President, Chief Financial Officer and Treasurer

Principal Financial Officer

Dated: November 8, 2022

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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: November 8, 2022

/s/ Bruce D. Hoechner

Bruce D. Hoechner

President and Chief Executive Officer
Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Ramakumar Mayampurath, 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: November 8, 2022

/s/ Ramakumar Mayampurath

Ramakumar Mayampurath

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, 2022 (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

November 8, 2022

/s/ Ramakumar Mayampurath

Ramakumar Mayampurath

Senior Vice President, Chief Financial Officer and Treasurer

Principal Financial Officer

November 8, 2022

XML

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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		18,811,874
Entity Central Index Key	0000084748
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 247,231	$ 238,263	$ 747,467	$ 702,434
Cost of sales	169,167	146,609	497,491	431,448
Gross margin	78,064	91,654	249,976	270,986
Selling, general and administrative expenses	50,653	47,886	164,496	135,258
Research and development expenses	9,140	7,531	25,450	22,195
Restructuring and impairment charges	373	1,007	1,119	3,260
Other operating (income) expense, net	(578)	1,431	(2,852)	3,536
Operating income	18,476	33,799	61,763	106,737
Equity income in unconsolidated joint ventures	1,162	1,773	4,237	5,884
Pension settlement charges	0	(534)	0	(534)
Other income (expense), net	977	(469)	1,563	3,738
Interest expense, net	(2,942)	(441)	(5,559)	(1,452)
Income before income tax expense	17,673	34,128	62,004	114,373
Income tax expense	2,835	8,999	12,683	29,371
Net income	$ 14,838	$ 25,129	$ 49,321	$ 85,002
Basic earnings per share (in dollars per share)	$ 0.79	$ 1.34	$ 2.62	$ 4.54
Diluted earnings per share (in dollars per share)	$ 0.78	$ 1.33	$ 2.60	$ 4.51
Shares used in computing:
Basic earnings per share (in shares)	18,818	18,740	18,804	18,727
Diluted earnings per share (in shares)	18,999	18,874	18,997	18,831

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 14,838	$ 25,129	$ 49,321	$ 85,002
Foreign currency translation adjustment	(35,035)	(8,126)	(80,383)	(18,627)
Pension and other postretirement benefits:
Actuarial net loss incurred, net of tax (Note 4)	0	0	(15)	0
Amortization of loss, net of tax (Note 4)	87	52	260	173
Other comprehensive income (loss)	(34,948)	(8,074)	(80,138)	(18,454)
Comprehensive income (loss)	$ (20,110)	$ 17,055	$ (30,817)	$ 66,548

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 236,461	$ 232,296
Accounts receivable, less allowance for credit losses of $1,227 and $1,223	162,929	163,092
Contract assets	41,809	36,610
Inventories	173,610	133,384
Prepaid income taxes	4,008	1,921
Asbestos-related insurance receivables, current portion	3,361	3,176
Other current assets	15,500	13,586
Total current assets	637,678	584,065
Property, plant and equipment, net of accumulated depreciation of $368,270 and $367,850	374,984	326,967
Investments in unconsolidated joint ventures	12,974	16,328
Deferred income taxes	41,873	32,671
Goodwill	338,312	370,189
Other intangible assets, net of amortization	150,148	176,353
Pension assets	5,461	5,123
Asbestos-related insurance receivables, non-current portion	55,516	59,391
Other long-term assets	8,844	27,479
Total assets	1,625,790	1,598,566
Current liabilities
Accounts payable	57,200	64,660
Accrued employee benefits and compensation	35,978	48,196
Accrued income taxes payable	4,046	9,632
Asbestos-related liabilities, current portion	4,048	3,841
Other accrued liabilities	36,644	37,620
Total current liabilities	137,916	163,949
Borrowings under revolving credit facility	290,000	190,000
Pension and other postretirement benefits liabilities	1,495	1,618
Asbestos-related liabilities, non-current portion	60,167	64,491
Non-current income tax	8,013	7,131
Deferred income taxes	24,599	29,451
Other long-term liabilities	13,747	23,031
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,812 and 18,730 shares issued and outstanding	18,812	18,730
Additional paid-in capital	165,276	163,583
Retained earnings	1,031,146	981,825
Accumulated other comprehensive loss	(125,381)	(45,243)
Total shareholders' equity	1,089,853	1,118,895
Total liabilities and shareholders' equity	$ 1,625,790	$ 1,598,566

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,227	$ 1,223
Property, plant and equipment, accumulated depreciation	$ 368,270	$ 367,850
Capital Stock, par value (in dollars per share)	$ 1	$ 1
Capital Stock, authorized shares (shares)	50,000	50,000
Capital Stock, shares issued (shares)	18,812	18,730
Capital Stock, shares outstanding (shares)	18,812	18,730

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating Activities:
Net income	$ 49,321	$ 85,002
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	34,352	31,121
Equity compensation expense	11,576	13,147
Deferred income taxes	(14,076)	(1,267)
Equity in undistributed income of unconsolidated joint ventures	(4,237)	(5,884)
Dividends received from unconsolidated joint ventures	4,677	4,965
Pension settlement charges (benefits)		534
Pension and other postretirement benefits	23	(300)
(Gain) loss on sale or disposal of property, plant and equipment	(15)	(673)
Impairment charges	212	385
UTIS fire fixed asset and inventory write-offs	199	1,254
Provision (benefit) for credit losses	331	(310)
Changes in assets and liabilities:
Accounts receivable	(23,759)	(32,254)
Proceeds from insurance/government subsidies related to operations	1,153	264
Contract assets	(9,320)	(6,136)
Inventories	(47,500)	(19,386)
Pension and postretirement benefit contributions	(141)	(156)
Other current assets	(4,919)	(144)
Accounts payable and other accrued expenses	(12,083)	27,495
Other, net	16,040	8,458
Net cash provided by operating activities	1,834	106,115
Investing Activities:
Acquisition of business, net of cash received	(1,300)	0
Capital expenditures	(87,000)	(43,411)
Proceeds from the sale of property, plant and equipment, net	0	714
Proceeds from insurance claims	7,252	0
Net cash used in investing activities	(81,048)	(42,697)
Financing Activities:
Proceeds from borrowings under revolving credit facility	100,000	0
Repayment of debt principal and finance lease obligations	(202)	(29,655)
Payments of taxes related to net share settlement of equity awards	(10,751)	(2,752)
Proceeds from issuance of shares to employee stock purchase plan	950	1,563
Net cash provided by (used in) financing activities	89,997	(30,844)
Effect of exchange rate fluctuations on cash	(6,618)	(3,458)
Net (decrease) increase in cash and cash equivalents	4,165	29,116
Cash and cash equivalents at beginning of period	232,296	191,785
Cash and cash equivalents at end of period	236,461	220,901
Supplemental Disclosures:
Accrued capital additions	9,330	6,447
Interest, net of amounts capitalized	5,491	1,285
Income taxes	$ 19,617	$ 25,867

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Capital Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance, beginning of period at Dec. 31, 2020		$ 18,677	$ 147,961	$ 873,692	$ (19,575)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		29	(2,781)
Shares issued for employee stock purchase plan		13	1,550
Shares issued to directors		10	(10)
Equity compensation expense			13,147
Net income	$ 85,002			85,002
Other comprehensive income (loss)	(18,454)				(18,454)
Balance, end of period at Sep. 30, 2021	1,099,261	18,729	159,867	958,694	(38,029)
Balance, beginning of period at Jun. 30, 2021		18,722	154,330	933,565	(29,955)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		1	(69)
Shares issued for employee stock purchase plan		6	853
Shares issued to directors		0	0
Equity compensation expense			4,753
Net income	25,129			25,129
Other comprehensive income (loss)	(8,074)				(8,074)
Balance, end of period at Sep. 30, 2021	1,099,261	18,729	159,867	958,694	(38,029)
Balance, beginning of period at Dec. 31, 2021	1,118,895	18,730	163,583	981,825	(45,243)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		69	(10,820)
Shares issued for employee stock purchase plan		6	944
Shares issued to directors		7	(7)
Equity compensation expense			11,576
Net income	49,321			49,321
Other comprehensive income (loss)	(80,138)				(80,138)
Balance, end of period at Sep. 30, 2022	1,089,853	18,812	165,276	1,031,146	(125,381)
Balance, beginning of period at Jun. 30, 2022		18,811	161,885	1,016,308	(90,433)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		1	(129)
Shares issued for employee stock purchase plan		0	0
Shares issued to directors		0	0
Equity compensation expense			3,520
Net income	14,838			14,838
Other comprehensive income (loss)	(34,948)				(34,948)
Balance, end of period at Sep. 30, 2022	$ 1,089,853	$ 18,812	$ 165,276	$ 1,031,146	$ (125,381)

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Basis of Presentation

9 Months Ended

Sep. 30, 2022

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, 2021. Refer to the discussion below for our restructuring activities significant accounting policy.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2022

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 had a pension surplus investment balance, which was accounted for as an available-for-sale investment as of June 2020. At the end of April, 2022, the entirety of the balance was paid out as a one-time discretionary contribution to all participants of the Rogers Employees Savings Investment Plan. 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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	—	$	—	$	—	$	—

	Available-for-Sale Investment at Fair Value as of December 31, 2021
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,638	$	—	$	—	$	6,638

(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 December 31, 2021. The fair value of this investment approximated its carrying value as of December 31, 2021.

From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts and copper derivative contracts. 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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	25	$	—	$	25
Copper derivative contracts	$	—	$	189	$	—	$	189

	Derivative Instruments at Fair Value as of December 31, 2021
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(16)	$	—	$	(16)
Copper derivative contracts	$	—	$	1,344	$	—	$	1,344

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position.

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, 2022

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 and commodity pricing risk (primarily related to copper). 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.

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.

Foreign Currency

During the three months ended September 30, 2022, 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 income (expense), net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2022, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	14,173,529
EUR/USD	€	4,984,006
KRW/USD	₩	8,081,640,000

Commodity

As of September 30, 2022, we had 12 outstanding contracts to hedge exposure related to the purchase of copper in our AES operating segment. These contracts are held with financial institutions and are intended to offset rising copper prices and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “Other income (expense), net” in our condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2022, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2022 - December 2022	69 metric tons per month
January 2023 - March 2023	69 metric tons per month
April 2023 - June 2023	69 metric tons per month
July 2023 - September 2023	69 metric tons per month

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(101)	$	(909)	$	(1,019)	$	(2,131)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(171)	$	(775)	$	(969)	$	3,085

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2022

Equity [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)		Total
Balance as of December 31, 2021	$	(35,641)	$	(9,602)	$	(45,243)
Other comprehensive income (loss) before reclassifications	(80,383)		(15)		(80,398)
Amounts reclassified from accumulated other comprehensive loss	—		260		260
Net current-period other comprehensive income (loss)	(80,383)		245		(80,138)
Balance as of September 30, 2022	$	(116,024)	$	(9,357)	$	(125,381)
Balance as of December 31, 2020	$	(10,571)	$	(9,004)	$	(19,575)
Other comprehensive income (loss) before reclassifications	(18,627)		—		(18,627)
Amounts reclassified from accumulated other comprehensive loss	—		173		173
Net current-period other comprehensive income (loss)	(18,627)		173		(18,454)
Balance as of September 30, 2021	$	(29,198)	$	(8,831)	$	(38,029)

(1) Net of taxes of $2,056 and $2,125 as of September 30, 2022 and December 31, 2021, respectively. Net of taxes of $1,902 and $1,951 as of September 30, 2021 and December 31, 2020, respectively.

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Inventories

9 Months Ended

Sep. 30, 2022

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, 2022		December 31, 2021
Raw materials	$	81,797	$	60,208
Work-in-process	44,235		29,078
Finished goods	47,578		44,098
Total inventories	$	173,610	$	133,384

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2022

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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
December 31, 2021	$	119,567	$	248,398	$	2,224	$	370,189
Purchase accounting adjustment	—		(925)		—		(925)
Foreign currency translation adjustment	(9,552)		(21,400)		—		$	(30,952)
September 30, 2022	$	110,015	$	226,073	$	2,224	$	338,312

Other Intangible Assets

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

	September 30, 2022						December 31, 2021
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	186,799	$	82,103	$	104,696	$	198,095	$	77,870	$	120,225
Technology	82,844		55,471		27,373		88,445		54,900		33,545
Trademarks and trade names	22,979		9,676		13,303		25,504		8,968		16,536
Covenants not to compete	2,452		1,535		917		2,693		1,137		1,556
Total definite-lived other intangible assets	295,074		148,785		146,289		314,737		142,875		171,862
Indefinite-lived other intangible asset	3,859		—		3,859		4,491		—		4,491
Total other intangible assets	$	298,933	$	148,785	$	150,148	$	319,228	$	142,875	$	176,353

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

Amortization expense was $4.1 million and $3.1 million for the three months ended September 30, 2022 and 2021, respectively, and $12.6 million and $9.4 million for the nine months ended September 30, 2022 and 2021, respectively. The estimated future amortization expense is $3.9 million for the remainder of 2022 and $14.9 million, $13.6 million, $11.9 million and $11.3 million for 2023, 2024, 2025 and 2026, respectively.

The weighted average amortization period as of September 30, 2022, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	7.8 years
Technology	3.5 years
Trademarks and trade names	2.1 years
Covenants not to compete	1.0 years
Total definite-lived other intangible assets	6.4 years

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Earnings Per Share

9 Months Ended

Sep. 30, 2022

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Numerator:
Net income	$	14,838	$	25,129	$	49,321	$	85,002
Denominator:
Weighted-average shares outstanding - basic	18,818		18,740		18,804		18,727
Effect of dilutive shares	181		134		193		104
Weighted-average shares outstanding - diluted	18,999		18,874		18,997		18,831
Basic earnings per share	$	0.79	$	1.34	$	2.62	$	4.54
Diluted earnings per share	$	0.78	$	1.33	$	2.60	$	4.51

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, 2022 and 2021, no shares and 1,994 shares were excluded, respectively.

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Capital Stock and Equity Compensation

9 Months Ended

Sep. 30, 2022

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, 2022, we had performance-based restricted stock units from 2021 and 2020 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, except as noted below in Chief Executive Officer’s 2021 Equity Award Grants. 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 2021:

	February 10, 2021
Expected volatility	51.0%
Expected term (in years)	2.9
Risk-free interest rate	0.18%

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, 2022 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2021	114,554
Awards granted	26,819
Stock issued	(60,053)
Awards cancelled	(1,860)
Awards outstanding as of September 30, 2022	79,460

We recognized $1.1 million and $2.6 million of compensation expense for performance-based restricted stock units for the three months ended September 30, 2022 and 2021, respectively. We recognized $3.3 million and $5.8 million of compensation expense for performance-based restricted stock units for the nine months ended September 30, 2022 and 2021, respectively.

Time-Based Restricted Stock Units

As of September 30, 2022, we had time-based restricted stock unit awards from 2022, 2021, 2020 and 2019 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, except as noted below in Chief Executive Officer’s 2021 Equity Award Grants. 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, 2022 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2021	96,989
Awards granted	63,150
Stock issued	(47,600)
Awards cancelled	(3,766)
Awards outstanding as of September 30, 2022	108,773

We recognized $2.4 million and $2.0 million of compensation expense for time-based restricted stock units for the three months ended September 30, 2022 and 2021, respectively. We recognized $7.0 million and $5.8 million of compensation expense for time-based restricted stock units for the nine months ended September 30, 2022 and 2021, respectively.

Chief Executive Officer’s 2021 Equity Award Grants

The terms of the performance-based and time-based restricted stock unit awards granted to our Chief Executive Officer (CEO), Bruce Hoechner, in February 2021 were modified from the standard language provisions from prior year awards to allow for accelerated vesting of the full awards provided certain criteria are met. Accounting Standards Codification (ASC) Topic 718: Compensation—Stock Compensation requires companies that allow for accelerated vesting of employees’ unvested equity upon retirement to recognize the expense from the date of grant to the date the employee becomes eligible to retire – regardless of whether or not the employee actually retires when he or she is eligible to retire. As a result, the $4.0 million of expense in 2021 related to the awards granted on February 10, 2021 to our CEO, which provide for immediate vesting upon retirement, were expensed from the date of the grant, February 10, 2021, through his retirement eligibility date, November 9, 2021.

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, 2022 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2021	9,500
Awards granted	4,800
Stock issued	(7,450)
Awards outstanding as of September 30, 2022	6,850

We recognized no compensation expense for deferred stock units for the three months ended September 30, 2022 and 2021, respectively. We recognized $1.3 million and $1.2 million of compensation expense for deferred stock units for the nine months ended September 30, 2022 and 2021, respectively.

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Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

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.

On March 5, 2021, the U.K. Financial Conduct Authority (“FCA”) publicly announced that immediately after December 31, 2021, publication of most Euro, Swiss Franc, Japanese Yen and Pound Sterling LIBOR settings will permanently cease. On October 15, 2021, Rogers Corporation and JPMorgan Chase Bank, N.A. entered into an amendment (Amendment No. 1) to the Fourth Amended Credit Agreement to adopt a new benchmark interest rate to replace the discontinued LIBOR reference rates.

Borrowings under the Fourth Amended Credit Agreement can be made as alternate base rate loans, euro-currency loans, or RFR 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. RFR loans bears interest based upon the Sterling Overnight Index Average (SONIA) plus 0.0326% plus a spread of 162.5 to 200.0 basis points. Based on our leverage ratio as of September 30, 2022, the spread was 175.0 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding, we incur an annual fee of 25 to 35 basis points (based upon our leverage ratio), paid quarterly, 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.

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 the 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 September 30, 2022.

We borrowed $30.0 million under the Fourth Amended Credit Agreement for the three months ended September 30, 2022, and $100.0 million for the nine months ended September 30, 2022. There were no borrowings for the three and nine months ended September 30, 2021. We are not required to make any quarterly principal payments under the Fourth Amended Credit Agreement. We made no payments for the three and nine months ended September 30, 2022, and no payments for the three months ended September 30, 2021. We made $25.0 million of discretionary principal payments on our revolving credit facility for the nine months ended September 30, 2021.

We had $290.0 million outstanding borrowings under our revolving credit facility as of September 30, 2022, and $190.0 million as of December 31, 2021. We had $1.1 million and $1.6 million of outstanding line of credit issuance costs as of September 30, 2022 and December 31, 2021, respectively, which will be amortized over the life of the Fourth Amended Credit Agreement.

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Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

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, 2022 and 2021. 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, 2022 and 2021. 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, 2022 and 2021, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option.

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Operating leases expense	$	652	$	594	$	1,896	$	2,054
Short-term leases expense	$	168	$	97	$	420	$	227
Payments on operating lease obligations	$	663	$	610	$	2,231	$	1,945

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, 2022		December 31, 2021
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,629	$	389
Operating lease right-of-use assets	Other long-term assets	$	5,688	$	17,161
Finance lease obligations, current portion	Other accrued liabilities	$	389	$	198
Finance lease obligations, non-current portion	Other long-term liabilities	$	1,227	$	209
Total finance lease obligations		$	1,616	$	407
Operating lease obligations, current portion	Other accrued liabilities	$	2,016	$	2,810
Operating lease obligations, non-current portion	Other long-term liabilities	$	4,112	$	14,965
Total operating lease obligations		$	6,128	$	17,775

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, 2022:

	Finance			Operating
(Dollars in thousands)	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect
2022	92	(4)	88	678	(19)	659
2023	564	(51)	513	2,446	(441)	2,005
2024	381	(56)	325	1,364	(479)	885
2025	381	(56)	325	1,021	(498)	523
2026	379	(56)	323	947	(429)	518
Thereafter	343	(126)	217	5,535	(2,973)	2,562
Total lease payments	2,140	(349)	1,791	11,991	(4,839)	7,152
Less: Interest	(204)	29	(175)	(2,333)	1,309	(1,024)
Present Value of Net Future Minimum Lease Payments	1,936	(320)	1,616	9,658	(3,530)	6,128

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	4.6 years	6.1 years
Weighted Average Discount Rate	3.76%	4.40%

In April 2022, we successfully negotiated the termination of a lease signed for the facility in South Korea, which went into effect in October 2021, in exchange for an approximately $0.4 million settlement fee. The termination of this lease reduced our operating lease right-of-use assets and lease liabilities by approximately $9.2 million each.

Leases

Leases

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, 2022 and 2021. 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, 2022 and 2021. 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, 2022 and 2021, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option.

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Operating leases expense	$	652	$	594	$	1,896	$	2,054
Short-term leases expense	$	168	$	97	$	420	$	227
Payments on operating lease obligations	$	663	$	610	$	2,231	$	1,945

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, 2022		December 31, 2021
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,629	$	389
Operating lease right-of-use assets	Other long-term assets	$	5,688	$	17,161
Finance lease obligations, current portion	Other accrued liabilities	$	389	$	198
Finance lease obligations, non-current portion	Other long-term liabilities	$	1,227	$	209
Total finance lease obligations		$	1,616	$	407
Operating lease obligations, current portion	Other accrued liabilities	$	2,016	$	2,810
Operating lease obligations, non-current portion	Other long-term liabilities	$	4,112	$	14,965
Total operating lease obligations		$	6,128	$	17,775

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, 2022:

	Finance			Operating
(Dollars in thousands)	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect
2022	92	(4)	88	678	(19)	659
2023	564	(51)	513	2,446	(441)	2,005
2024	381	(56)	325	1,364	(479)	885
2025	381	(56)	325	1,021	(498)	523
2026	379	(56)	323	947	(429)	518
Thereafter	343	(126)	217	5,535	(2,973)	2,562
Total lease payments	2,140	(349)	1,791	11,991	(4,839)	7,152
Less: Interest	(204)	29	(175)	(2,333)	1,309	(1,024)
Present Value of Net Future Minimum Lease Payments	1,936	(320)	1,616	9,658	(3,530)	6,128

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	4.6 years	6.1 years
Weighted Average Discount Rate	3.76%	4.40%

In April 2022, we successfully negotiated the termination of a lease signed for the facility in South Korea, which went into effect in October 2021, in exchange for an approximately $0.4 million settlement fee. The termination of this lease reduced our operating lease right-of-use assets and lease liabilities by approximately $9.2 million each.

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Pension Benefits and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Pension Benefit and Other Postretirement Benefits

Pension Benefits and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of September 30, 2022, we had one qualified noncontributory defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which was frozen and ceased accruing benefits in 2013.

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 Termination Surplus Funds

On October 17, 2019, our Chief Executive Officer approved 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)). We provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020.

Upon completion of the pension termination and settlement processes for the Merged Plan, we had a $9.7 million remaining pension surplus investment balance. In July 2020 and December 2021, we transferred $9.2 million of the pension surplus investment balance to a suspense account held within a trust for the Rogers Employee Savings and Investment Plan (RESIP), a 401(k) plan for domestic employees. In December 2021, we transferred the remaining pension investment balance not initially transferred, to the RESIP trust suspense account. The investment balance not transferred to the trust suspense account will be used to pay any final plan expenses, after which the remainder of these funds will be moved to the RESIP trust suspense account. The funds in the RESIP trust suspense account have been, and will continue to be, used to fund certain employer contributions. There was no remaining balance for the pension surplus investments as of September 30, 2022.

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)	2022		2021		2022		2021		2022		2021		2022		2021
Service cost	$	—	$	—	$	—	$	—	$	10	$	16	$	30	$	46
Interest cost	191		182		573		550		8		7		24		19
Expected return of plan assets	(340)		(389)		(1,020)		(1,169)		—		—		—		—
Amortization of prior service credit	—		—		—		—		—		(25)		—		(73)
Amortization of net loss	111		95		333		291		—		—		—		—
Net periodic benefit (credit) cost	$	(38)	$	(112)	$	(114)	$	(328)	$	18	$	(2)	$	54	$	(8)

Employer Contributions

There were no required or voluntary contributions made to the Union Plan or the Merged Plan for each of the three and nine- months ended September 30, 2022 and 2021. Additionally, we are not required to make additional contributions to the Union Plan for the remainder of 2022.

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- months ended September 30, 2022 and 2021, using cash from operations.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

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 $1.9 million of aggregate remediation costs through September 30, 2022, and the accrual for future remediation efforts is $0.8 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, 2022:

	Asbestos Claims
Claims outstanding as of January 1	543
New claims filed	101
Pending claims concluded(1)	(107)
Claims outstanding as of September 30, 2022	537

(1) For the nine months ended September 30, 2022, 94 claims were dismissed and 13 claims were settled. Settlements totaled approximately $1.7 million for the nine months ended September 30, 2022.

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, 2022 and 2021, 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, 2022		December 31, 2021
Asbestos-related liabilities	$	64,215	$	68,332
Asbestos-related insurance receivables	$	58,877	$	62,567

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, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective income tax rate was 16.0% and 26.4% for the three months ended September 30, 2022 and 2021, respectively. The decrease from the third quarter of 2021 was primarily due to the beneficial impact of a decrease in current quarter accruals of reserves for uncertain tax positions. Our effective income tax rate was 20.5% and 25.7% for the nine months ended September 30, 2022 and 2021, respectively. The decrease from the first nine months of 2021 was primarily due to the beneficial impact of a decrease in current quarter accruals of reserves for uncertain tax positions.

The total amount of unrecognized tax benefits as of September 30, 2022 was $6.5 million, of which $5.9 million would affect our effective tax rate if recognized. Additionally, the balance of unrecognized tax benefits as of September 30, 2022 also included $0.6 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of September 30, 2022, we had $0.7 million accrued for the payment of interest.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2018 through 2022 are subject to examination by the tax authorities. With few exceptions, we are no longer subject to U.S. federal, state, local and foreign examinations by tax authorities for the years before 2018.

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Operating Segment Information

9 Months Ended

Sep. 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 the general industrial market, as well as elastomer floats for level sensing in fuel tank, motor, and storage tank 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, 2022
Net sales - recognized over time	$	72,969	$	3,346	$	4,110	$	80,425
Net sales - recognized at a point in time	57,639		107,637		1,530		166,806
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
Operating income	$	2,263	$	14,322	$	1,891	$	18,476
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
Nine Months Ended September 30, 2022
Net sales - recognized over time	$	214,091	$	9,090	$	12,763	$	235,944
Net sales - recognized at a point in time	190,835		317,223		3,465		511,523
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
Operating income	$	12,342	$	43,920	$	5,501	$	61,763
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

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, 2022
United States	$	33,969	$	46,772	$	1,087	$	81,828
Other Americas	843		2,534		247		3,624
Total Americas	34,812		49,306		1,334		85,452
China	36,126		37,349		2,290		75,765
Other APAC	16,544		5,173		508		22,225
Total APAC	52,670		42,522		2,798		97,990
Germany	19,727		7,310		393		27,430
Other EMEA	23,399		11,845		1,115		36,359
Total EMEA	43,126		19,155		1,508		63,789
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
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

(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, 2022
United States	$	94,907	$	136,340	$	3,075	$	234,322
Other Americas	2,814		7,550		614		10,978
Total Americas	97,721		143,890		3,689		245,300
China	113,448		99,734		6,048		219,230
Other APAC	60,023		18,418		1,778		80,219
Total APAC	173,471		118,152		7,826		299,449
Germany	57,653		23,784		874		82,311
Other EMEA	76,081		40,487		3,839		120,407
Total EMEA	133,734		64,271		4,713		202,718
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
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

(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, 2022		December 31, 2021
Advanced Electronics Solutions	$	36,015	$	31,398
Elastomeric Material Solutions	2,467		2,082
Other	3,327		3,130
Total contract assets	$	41,809	$	36,610

We did not have any contract liabilities as of September 30, 2022 or December 31, 2021. No impairment losses were recognized for the three or nine-month periods ended September 30, 2022 and 2021, 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, 2022

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, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Restructuring charges
Manufacturing footprint optimization	$	373	$	622	$	907	$	2,875
Total restructuring charges	373		622		907		2,875
Impairment charges
Fixed asset impairment charges	—		385		212		385
Total impairment charges	—		385		212		385
Total restructuring and impairment charges	$	373	$	1,007	$	1,119	$	3,260

Our AES operating segment incurred $0.4 million and $1.1 million of restructuring and impairment charges for the three and nine months ended September 30, 2022, respectively, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 2022. Our AES operating segment incurred $1.0 million and $3.2 million of restructuring and impairment charges, respectively, for the three and nine months ended September 30, 2021, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 2021.

Restructuring Charges & Related Expenses - Manufacturing Footprint Optimization

During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our AES operating segment, in order to achieve greater cost competitiveness as well as align capacity with end market demand. The majority of the restructuring activities were completed in the first half of 2021. We incurred an immaterial amount of restructuring charges and related expenses for the three and nine months ended September 30, 2022, including severance and related benefits. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2022:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2021	$	1,395
Provisions	363
Payments	(1,479)
Foreign currency translation adjustment	(111)
Balance as of September 30, 2022	$	168

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
UTIS fire
Fixed assets write-offs	$	—	$	—	$	—	$	891
Inventory charges	(1)		43		199		363
Professional services	369		577		1,295		2,171
Lease obligations	91		60		369		600
Lease impairments	—		495		—		495
Compensation & benefits	562		614		1,931		1,458
Third-party property claims	—		4,650		—		4,650
Other	2		—		15		76
Insurance recoveries	(1,604)		(5,017)		(6,646)		(6,495)
Total UTIS fire	(581)		1,422		(2,837)		4,209
(Gain) loss on sale or disposal of property, plant and equipment	3		9		(15)		(673)
Total other operating (income) expense, net	$	(578)	$	1,431	$	(2,852)	$	3,536

In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea, which manufactures eSorba® polyurethane foams used in portable electronics and display applications. The site was safely evacuated and there were no reported injuries; however, there was extensive damage to the manufacturing site and some damage to nearby property. Operations in South Korea will be disrupted into the first half of 2023.

In connection with the UTIS fire, we recognized insurance recoveries of $1.6 million and $6.6 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three and nine months ended September 30, 2022, respectively. We incurred $0.4 million and $1.3 million for various professional services for the three and nine months ended September 30, 2022, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.9 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three and nine months ended September 30, 2022, respectively.

We recognized fixed asset write-offs and inventory charges of $0.9 million and $0.4 million, respectively, related to property destroyed in the fire for the nine months ended September 30, 2021. Additionally, we recognized a $4.7 million contingent liability pertaining to damage to nearby property and a $0.5 million contingent liability pertaining to our obligations for the fire damage to the building in connection with the underlying lease agreement. We incurred $0.6 million and $2.2 million of fees for various professional services for the three and nine months ended September 30, 2021, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.5 million of compensation and benefits for UTIS manufacturing employees, subsequent to the fire, for the three and nine months ended September 30, 2021, respectively. In connection with the UTIS fire, we recognized insurance recoveries of $5.0 million and $6.5 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees, less the applicable $0.3 million deductible, for the three and nine months ended September 30, 2021, respectively.

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest on revolving credit facility	$	2,831	$	—	$	5,014	$	106
Line of credit fees	118		292		409		856
Debt issuance amortization costs	178		178		536		536
Interest income	(175)		(64)		(462)		(409)
Other	(10)		35		62		363
Total interest expense, net	$	2,942	$	441	$	5,559	$	1,452

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Mergers and Acquisitions

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Mergers and Acquisitions

Mergers and Acquisitions

Acquisition of Silicone Engineering Ltd.

On October 8, 2021, we acquired Silicone Engineering Ltd. (Silicone Engineering), a leading European manufacturer of silicone material solutions based in Blackburn, England, for a combined purchase price of $172.3 million for the company, net of cash acquired, and its facility. As part of the agreement, there was a $4.1 million holdback, upon which we could issue claims against until six months after the close of the acquisition, at which point in time the holdback amount, less any holdback claims, be paid to the previous owners of Silicone Engineering. In April 2022, we paid $1.3 million of the holdback in exchange for a 6-month extension of the holdback period. In October 2022, we paid back the remaining of the holdback, less an immaterial amount for claims. Substantially all of our $190.0 million in borrowings under our existing credit facility in October 2021 were used to fund the transaction, with the remaining amounts being used for general corporate purposes. Silicone Engineering expands our existing advanced silicones platform in our EMS operating segment and provides us a European Center of Excellence to service customers requiring premium silicone solutions for applications in the EV/HEV, industrial, medical and other markets.

Pro-Forma Financial Information

The following unaudited pro forma financial information presents the combined results of operations of Rogers and Silicone Engineering as if the Silicone Engineering acquisition had occurred on January 1, 2020. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the Silicone Engineering acquisition been completed as of January 1, 2020 and should not be taken as indicative of our future consolidated results of operations.

	Three Months Ended		Nine Months Ended
(Dollars in thousands)	September 30, 2021		September 30, 2021
Net sales	$	248,679	$	733,404
Net income	$	26,419	$	88,271

Terminated Merger Agreement with DuPont

On November 1, 2021, we entered into a definitive merger agreement to be acquired by DuPont de Nemours, Inc. (DuPont) in an all-cash transaction at a price of $277.00 per share of the Company’s capital stock. The merger agreement provided for the acquisition of Rogers Corporation by DuPont through the merger of Cardinalis Merger Sub, Inc., a wholly owned subsidiary of DuPont, with and into Rogers Corporation, with Rogers Corporation surviving the merger as a wholly owned subsidiary of DuPont. Company shareholders approved the merger agreement at a special shareholder meeting held on January 25, 2022. The merger agreement provided both Rogers Corporation and DuPont with a right to terminate the merger agreement if the merger had not closed on or before November 1, 2022. Consummation of the merger was subject to various customary closing conditions, including regulatory approval by the State Administration for Market Regulation of China (SAMR). As of November 1, 2022, the parties had not received regulatory approval from SAMR. On November 1, 2022, the Company received from DuPont a notice of termination of the merger agreement. Pursuant to the terms of the merger agreement, the Company received a regulatory termination fee from DuPont in the amount of $162.5 million, before taxes and transaction-related fees.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	—	$	—	$	—	$	—

	Available-for-Sale Investment at Fair Value as of December 31, 2021
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,638	$	—	$	—	$	6,638

(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 December 31, 2021. The fair value of this investment approximated its carrying value as of December 31, 2021.

Schedule of Derivative Instruments 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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	25	$	—	$	25
Copper derivative contracts	$	—	$	189	$	—	$	189

	Derivative Instruments at Fair Value as of December 31, 2021
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(16)	$	—	$	(16)
Copper derivative contracts	$	—	$	1,344	$	—	$	1,344

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position.

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Hedging Transactions and Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2022, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	14,173,529
EUR/USD	€	4,984,006
KRW/USD	₩	8,081,640,000

As of September 30, 2022, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2022 - December 2022	69 metric tons per month
January 2023 - March 2023	69 metric tons per month
April 2023 - June 2023	69 metric tons per month
July 2023 - September 2023	69 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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(101)	$	(909)	$	(1,019)	$	(2,131)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(171)	$	(775)	$	(969)	$	3,085

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of 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)		Total
Balance as of December 31, 2021	$	(35,641)	$	(9,602)	$	(45,243)
Other comprehensive income (loss) before reclassifications	(80,383)		(15)		(80,398)
Amounts reclassified from accumulated other comprehensive loss	—		260		260
Net current-period other comprehensive income (loss)	(80,383)		245		(80,138)
Balance as of September 30, 2022	$	(116,024)	$	(9,357)	$	(125,381)
Balance as of December 31, 2020	$	(10,571)	$	(9,004)	$	(19,575)
Other comprehensive income (loss) before reclassifications	(18,627)		—		(18,627)
Amounts reclassified from accumulated other comprehensive loss	—		173		173
Net current-period other comprehensive income (loss)	(18,627)		173		(18,454)
Balance as of September 30, 2021	$	(29,198)	$	(8,831)	$	(38,029)

(1) Net of taxes of $2,056 and $2,125 as of September 30, 2022 and December 31, 2021, respectively. Net of taxes of $1,902 and $1,951 as of September 30, 2021 and December 31, 2020, respectively.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories

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

(Dollars in thousands)	September 30, 2022		December 31, 2021
Raw materials	$	81,797	$	60,208
Work-in-process	44,235		29,078
Finished goods	47,578		44,098
Total inventories	$	173,610	$	133,384

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
December 31, 2021	$	119,567	$	248,398	$	2,224	$	370,189
Purchase accounting adjustment	—		(925)		—		(925)
Foreign currency translation adjustment	(9,552)		(21,400)		—		$	(30,952)
September 30, 2022	$	110,015	$	226,073	$	2,224	$	338,312

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, 2022						December 31, 2021
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	186,799	$	82,103	$	104,696	$	198,095	$	77,870	$	120,225
Technology	82,844		55,471		27,373		88,445		54,900		33,545
Trademarks and trade names	22,979		9,676		13,303		25,504		8,968		16,536
Covenants not to compete	2,452		1,535		917		2,693		1,137		1,556
Total definite-lived other intangible assets	295,074		148,785		146,289		314,737		142,875		171,862
Indefinite-lived other intangible asset	3,859		—		3,859		4,491		—		4,491
Total other intangible assets	$	298,933	$	148,785	$	150,148	$	319,228	$	142,875	$	176,353

Schedule of Weighted Average Amortization Period, by Intangible Asset Class

The weighted average amortization period as of September 30, 2022, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	7.8 years
Technology	3.5 years
Trademarks and trade names	2.1 years
Covenants not to compete	1.0 years
Total definite-lived other intangible assets	6.4 years

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of 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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Numerator:
Net income	$	14,838	$	25,129	$	49,321	$	85,002
Denominator:
Weighted-average shares outstanding - basic	18,818		18,740		18,804		18,727
Effect of dilutive shares	181		134		193		104
Weighted-average shares outstanding - diluted	18,999		18,874		18,997		18,831
Basic earnings per share	$	0.79	$	1.34	$	2.62	$	4.54
Diluted earnings per share	$	0.78	$	1.33	$	2.60	$	4.51

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Capital Stock and Equity Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Schedule of Weighted-Average Assumptions Used

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2021:

	February 10, 2021
Expected volatility	51.0%
Expected term (in years)	2.9
Risk-free interest rate	0.18%

Schedule of Restricted Stock and Restricted Stock Activity

A summary of activity of the outstanding performance-based restricted stock units for the nine months ended September 30, 2022 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2021	114,554
Awards granted	26,819
Stock issued	(60,053)
Awards cancelled	(1,860)
Awards outstanding as of September 30, 2022	79,460

A summary of activity of the outstanding time-based restricted stock units for the nine months ended September 30, 2022 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2021	96,989
Awards granted	63,150
Stock issued	(47,600)
Awards cancelled	(3,766)
Awards outstanding as of September 30, 2022	108,773

A summary of activity of the outstanding deferred stock units for the nine months ended September 30, 2022 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2021	9,500
Awards granted	4,800
Stock issued	(7,450)
Awards outstanding as of September 30, 2022	6,850

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Leases (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Operating leases expense	$	652	$	594	$	1,896	$	2,054
Short-term leases expense	$	168	$	97	$	420	$	227
Payments on operating lease obligations	$	663	$	610	$	2,231	$	1,945

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	4.6 years	6.1 years
Weighted Average Discount Rate	3.76%	4.40%

Schedule of 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, 2022		December 31, 2021
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,629	$	389
Operating lease right-of-use assets	Other long-term assets	$	5,688	$	17,161
Finance lease obligations, current portion	Other accrued liabilities	$	389	$	198
Finance lease obligations, non-current portion	Other long-term liabilities	$	1,227	$	209
Total finance lease obligations		$	1,616	$	407
Operating lease obligations, current portion	Other accrued liabilities	$	2,016	$	2,810
Operating lease obligations, non-current portion	Other long-term liabilities	$	4,112	$	14,965
Total operating lease obligations		$	6,128	$	17,775

Schedule of Finance Lease Liability Maturity

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2022:

	Finance			Operating
(Dollars in thousands)	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect
2022	92	(4)	88	678	(19)	659
2023	564	(51)	513	2,446	(441)	2,005
2024	381	(56)	325	1,364	(479)	885
2025	381	(56)	325	1,021	(498)	523
2026	379	(56)	323	947	(429)	518
Thereafter	343	(126)	217	5,535	(2,973)	2,562
Total lease payments	2,140	(349)	1,791	11,991	(4,839)	7,152
Less: Interest	(204)	29	(175)	(2,333)	1,309	(1,024)
Present Value of Net Future Minimum Lease Payments	1,936	(320)	1,616	9,658	(3,530)	6,128

Schedule of Operating Lease Liability Maturity

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2022:

	Finance			Operating
(Dollars in thousands)	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect	Leases Signed	Less: Leases Not Yet Commenced	Leases in Effect
2022	92	(4)	88	678	(19)	659
2023	564	(51)	513	2,446	(441)	2,005
2024	381	(56)	325	1,364	(479)	885
2025	381	(56)	325	1,021	(498)	523
2026	379	(56)	323	947	(429)	518
Thereafter	343	(126)	217	5,535	(2,973)	2,562
Total lease payments	2,140	(349)	1,791	11,991	(4,839)	7,152
Less: Interest	(204)	29	(175)	(2,333)	1,309	(1,024)
Present Value of Net Future Minimum Lease Payments	1,936	(320)	1,616	9,658	(3,530)	6,128

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Pension Benefits and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Schedule of 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)	2022		2021		2022		2021		2022		2021		2022		2021
Service cost	$	—	$	—	$	—	$	—	$	10	$	16	$	30	$	46
Interest cost	191		182		573		550		8		7		24		19
Expected return of plan assets	(340)		(389)		(1,020)		(1,169)		—		—		—		—
Amortization of prior service credit	—		—		—		—		—		(25)		—		(73)
Amortization of net loss	111		95		333		291		—		—		—		—
Net periodic benefit (credit) cost	$	(38)	$	(112)	$	(114)	$	(328)	$	18	$	(2)	$	54	$	(8)

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Liability For Unpaid Claims And Claims Adjustment Expense

The following table summarizes the change in number of asbestos claims outstanding for the nine months ended September 30, 2022:

	Asbestos Claims
Claims outstanding as of January 1	543
New claims filed	101
Pending claims concluded(1)	(107)
Claims outstanding as of September 30, 2022	537

(1) For the nine months ended September 30, 2022, 94 claims were dismissed and 13 claims were settled. Settlements totaled approximately $1.7 million for the nine months ended September 30, 2022.

Schedule of Asbestos-Related Claims and Insurance Receivables

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

(Dollars in thousands)	September 30, 2022		December 31, 2021
Asbestos-related liabilities	$	64,215	$	68,332
Asbestos-related insurance receivables	$	58,877	$	62,567

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Operating Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of 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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2022
Net sales - recognized over time	$	72,969	$	3,346	$	4,110	$	80,425
Net sales - recognized at a point in time	57,639		107,637		1,530		166,806
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
Operating income	$	2,263	$	14,322	$	1,891	$	18,476
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
Nine Months Ended September 30, 2022
Net sales - recognized over time	$	214,091	$	9,090	$	12,763	$	235,944
Net sales - recognized at a point in time	190,835		317,223		3,465		511,523
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
Operating income	$	12,342	$	43,920	$	5,501	$	61,763
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

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, 2022
United States	$	33,969	$	46,772	$	1,087	$	81,828
Other Americas	843		2,534		247		3,624
Total Americas	34,812		49,306		1,334		85,452
China	36,126		37,349		2,290		75,765
Other APAC	16,544		5,173		508		22,225
Total APAC	52,670		42,522		2,798		97,990
Germany	19,727		7,310		393		27,430
Other EMEA	23,399		11,845		1,115		36,359
Total EMEA	43,126		19,155		1,508		63,789
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
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

(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, 2022
United States	$	94,907	$	136,340	$	3,075	$	234,322
Other Americas	2,814		7,550		614		10,978
Total Americas	97,721		143,890		3,689		245,300
China	113,448		99,734		6,048		219,230
Other APAC	60,023		18,418		1,778		80,219
Total APAC	173,471		118,152		7,826		299,449
Germany	57,653		23,784		874		82,311
Other EMEA	76,081		40,487		3,839		120,407
Total EMEA	133,734		64,271		4,713		202,718
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
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

(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, 2022		December 31, 2021
Advanced Electronics Solutions	$	36,015	$	31,398
Elastomeric Material Solutions	2,467		2,082
Other	3,327		3,130
Total contract assets	$	41,809	$	36,610

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Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2022

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, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Restructuring charges
Manufacturing footprint optimization	$	373	$	622	$	907	$	2,875
Total restructuring charges	373		622		907		2,875
Impairment charges
Fixed asset impairment charges	—		385		212		385
Total impairment charges	—		385		212		385
Total restructuring and impairment charges	$	373	$	1,007	$	1,119	$	3,260

Schedule of Severance Activity

Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2022:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2021	$	1,395
Provisions	363
Payments	(1,479)
Foreign currency translation adjustment	(111)
Balance as of September 30, 2022	$	168

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
UTIS fire
Fixed assets write-offs	$	—	$	—	$	—	$	891
Inventory charges	(1)		43		199		363
Professional services	369		577		1,295		2,171
Lease obligations	91		60		369		600
Lease impairments	—		495		—		495
Compensation & benefits	562		614		1,931		1,458
Third-party property claims	—		4,650		—		4,650
Other	2		—		15		76
Insurance recoveries	(1,604)		(5,017)		(6,646)		(6,495)
Total UTIS fire	(581)		1,422		(2,837)		4,209
(Gain) loss on sale or disposal of property, plant and equipment	3		9		(15)		(673)
Total other operating (income) expense, net	$	(578)	$	1,431	$	(2,852)	$	3,536

Schedule of Components of 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, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest on revolving credit facility	$	2,831	$	—	$	5,014	$	106
Line of credit fees	118		292		409		856
Debt issuance amortization costs	178		178		536		536
Interest income	(175)		(64)		(462)		(409)
Other	(10)		35		62		363
Total interest expense, net	$	2,942	$	441	$	5,559	$	1,452

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Mergers and Acquisitions (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Pro Forma Information

The following unaudited pro forma financial information presents the combined results of operations of Rogers and Silicone Engineering as if the Silicone Engineering acquisition had occurred on January 1, 2020. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the Silicone Engineering acquisition been completed as of January 1, 2020 and should not be taken as indicative of our future consolidated results of operations.

	Three Months Ended		Nine Months Ended
(Dollars in thousands)	September 30, 2021		September 30, 2021
Net sales	$	248,679	$	733,404
Net income	$	26,419	$	88,271

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Fair Value Measurements (Available-for-sale Pension Surplus) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	$ 0	$ 6,638
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	0	6,638
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	$ 0	$ 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, 2022	Dec. 31, 2021
Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ 25	$ (16)
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	25	(16)
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	189	1,344
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	189	1,344
Copper derivative contracts | 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, 2022 USD ($) tons_per_month	Sep. 30, 2022 EUR (€) tons_per_month	Sep. 30, 2022 KRW (₩) tons_per_month
October 2022 - December 2022
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
January 2023 - March 2023
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
April 2023 - June 2023
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
July 2023 - September 2023
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
USD/CNH | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | $	$ 14,173,529
EUR/USD | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | €		€ 4,984,006
KRW/USD | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | ₩			₩ 8,081,640,000

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Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details)	Sep. 30, 2022 contract
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)	12

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Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Details) - Contracts not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Foreign Currency Contracts
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	$ (101)	$ (909)	$ (1,019)	$ (2,131)
Copper Derivative Contracts
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	$ (171)	$ (775)	$ (969)	$ 3,085

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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, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			$ 1,118,895
Other comprehensive income (loss) before reclassifications			(80,398)	$ (18,627)
Amounts reclassified from accumulated other comprehensive loss			260	173
Other comprehensive income (loss)	$ (34,948)	$ (8,074)	(80,138)	(18,454)
Balance, end of period	1,089,853	1,099,261	1,089,853	1,099,261
AOCI, Pension and other postretirement benefit plans, tax	2,056	1,902	2,056	1,902	$ 2,125	$ 1,951
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	(90,433)	(29,955)	(45,243)	(19,575)
Other comprehensive income (loss)	(34,948)	(8,074)	(80,138)	(18,454)
Balance, end of period	(125,381)	(38,029)	(125,381)	(38,029)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(35,641)	(10,571)
Other comprehensive income (loss) before reclassifications			(80,383)	(18,627)
Amounts reclassified from accumulated other comprehensive loss			0	0
Other comprehensive income (loss)			(80,383)	(18,627)
Balance, end of period	(116,024)	(29,198)	(116,024)	(29,198)
Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(9,602)	(9,004)
Other comprehensive income (loss) before reclassifications			(15)	0
Amounts reclassified from accumulated other comprehensive loss			260	173
Other comprehensive income (loss)			245	173
Balance, end of period	$ (9,357)	$ (8,831)	$ (9,357)	$ (8,831)

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 81,797	$ 60,208
Work-in-process	44,235	29,078
Finished goods	47,578	44,098
Total inventories	$ 173,610	$ 133,384

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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, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 370,189
Purchase accounting adjustment	(925)
Foreign currency translation adjustment	(30,952)
Goodwill, ending balance	338,312
Advanced Electronics Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	119,567
Purchase accounting adjustment	0
Foreign currency translation adjustment	(9,552)
Goodwill, ending balance	110,015
Elastomeric Material Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	248,398
Purchase accounting adjustment	(925)
Foreign currency translation adjustment	(21,400)
Goodwill, ending balance	226,073
Other
Goodwill [Roll Forward]
Goodwill, beginning balance	2,224
Purchase accounting adjustment	0
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, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 295,074	$ 314,737
Indefinite-lived other intangible asset	3,859	4,491
Total other intangible assets, gross carrying amount	298,933	319,228
Accumulated Amortization	148,785	142,875
Net Carrying Amount	146,289	171,862
Total other intangible assets, net carrying amount	150,148	176,353
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	186,799	198,095
Accumulated Amortization	82,103	77,870
Net Carrying Amount	104,696	120,225
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	82,844	88,445
Accumulated Amortization	55,471	54,900
Net Carrying Amount	27,373	33,545
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,979	25,504
Accumulated Amortization	9,676	8,968
Net Carrying Amount	13,303	16,536
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,452	2,693
Accumulated Amortization	1,535	1,137
Net Carrying Amount	$ 917	$ 1,556

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Goodwill and Other Intangible Assets (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4.1	$ 3.1	$ 12.6	$ 9.4
Annual Future Amortization Expense
Anticipated future amortization expense for the remainder of 2022	3.9		3.9
Anticipated future amortization expense for 2023	14.9		14.9
Anticipated future amortization expense for 2024	13.6		13.6
Anticipated future amortization expense for 2025	11.9		11.9
Anticipated future amortization expense for 2026	$ 11.3		$ 11.3

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Goodwill and Other Intangible Assets (Weighted Average Amortization Period by Intangible Asset Class) (Details)	9 Months Ended
	Sep. 30, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	6 years 4 months 24 days
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	7 years 9 months 18 days
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	3 years 6 months
Trademarks and trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	2 years 1 month 6 days
Covenants not to compete
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	1 year

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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, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income	$ 14,838	$ 25,129	$ 49,321	$ 85,002
Denominator:
Weighted-average shares outstanding - basic (in shares)	18,818,000	18,740,000	18,804,000	18,727,000
Effect of dilutive shares (in shares)	181,000	134,000	193,000	104,000
Weighted-average shares outstanding - diluted (in shares)	18,999,000	18,874,000	18,997,000	18,831,000
Basic earnings per share (in dollars per share)	$ 0.79	$ 1.34	$ 2.62	$ 4.54
Diluted earnings per share (in dollars per share)	$ 0.78	$ 1.33	$ 2.60	$ 4.51
Anti-dilutive shares excluded (in shares)	0	1,994

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Capital Stock and Equity Compensation (Additional Information) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Nov. 09, 2021	Sep. 30, 2021
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense that will be expensed from date of grant through retirement eligibility date				$ 4,000,000
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 (as a percent)			0.00%
Compensation expense	$ 1,100,000	$ 2,600,000	$ 3,300,000		$ 5,800,000
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 (as a 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 (as a percent)			200.00%
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	2,400,000	2,000,000	$ 7,000,000		5,800,000
Conversion ratio			1
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 0	$ 0	$ 1,300,000		$ 1,200,000
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. 10, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (as a percent)	51.00%
Expected term (in years)	2 years 10 months 24 days
Risk-free interest rate (as a percent)	0.18%

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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, 2022 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 (in shares)	114,554
Awards granted (in shares)	26,819
Stock issued (in shares)	(60,053)
Awards cancelled (in shares)	(1,860)
Awards outstanding ending balance (in shares)	79,460

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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, 2022 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 (in shares)	96,989
Awards granted (in shares)	63,150
Stock issued (in shares)	(47,600)
Awards cancelled (in shares)	(3,766)
Awards outstanding ending balance (in shares)	108,773

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Capital Stock and Equity Compensation (Deferred Stock Units) (Details) - Deferred Stock Units	9 Months Ended
	Sep. 30, 2022 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 (in shares)	9,500
Awards granted (in shares)	4,800
Stock issued (in shares)	(7,450)
Awards outstanding ending balance (in shares)	6,850

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Debt (Additional Information) (Details)		3 Months Ended		9 Months Ended
	Oct. 16, 2020 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Borrowings				$ 100,000,000	$ 0
Borrowings under revolving credit facility		$ 290,000,000		290,000,000		$ 190,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowings under revolving credit facility		290,000,000		290,000,000		190,000,000
Outstanding line of credit issuance costs		$ 1,100,000		$ 1,100,000		$ 1,600,000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 450,000,000
Additional borrowing capacity	$ 175,000,000
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
One-time leverage ratio maximum option, period of increased maximum leverage ratio	1 year
ICR covenant limit	3.00
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
Debt instrument, leverage ratio, maximum	2.75	2.75		2.75
Borrowings		$ 30,000,000	$ 0	$ 100,000,000	0
Discretionary principal payments on revolving credit facility		$ 0	$ 0	$ 0	$ 25,000,000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Minimum
Debt Instrument [Line Items]
Unused capacity, commitment fee (as a percent)	0.25%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Maximum
Debt Instrument [Line Items]
Unused capacity, commitment fee (as a percent)	0.35%
Allowed restricted payments, including cash dividends	$ 20,000,000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Eurocurrency loans
Debt Instrument [Line Items]
Line of credit, LIBOR rate, minimum basis spread (as a percent)	1.625%
Line of credit, LIBOR rate, maximum basis spread (as a percent)	2.00%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | RFR Bank Loans
Debt Instrument [Line Items]
Line of credit, SONIA rate, minimum basis spread (percent)	0.01625
Line of credit, SONIA rate, maximum basis spread (percent)	0.02000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.00%			1.75%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Sterling Overnight Index Average (SONIA)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.0326%

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Leases (Additional Information) (Details) - USD ($) $ in Millions		1 Months Ended
	Sep. 30, 2022	Apr. 30, 2022
Leases [Abstract]
Payment of purchase option to acquire property	$ 5.0
Lease settlement fee		$ 0.4
Decrease in operating lease, right-of-use asset		9.2
Decrease in operating lease liability		$ 9.2

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Leases (Lease Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating leases expense	$ 652	$ 594	$ 1,896	$ 2,054
Short-term leases expense	168	97	420	227
Payments on operating lease obligations	$ 663	$ 610	$ 2,231	$ 1,945

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Leases (Assets and Liabilities Balance Related to Finance and Operating Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Finance lease right-of-use assets	$ 1,629	$ 389
Operating lease right-of-use assets	5,688	17,161
Finance lease obligations, current portion	389	198
Finance lease obligations, non-current portion	1,227	209
Total finance lease obligations	1,616	407
Operating lease obligations, current portion	2,016	2,810
Operating lease obligations, non-current portion	4,112	14,965
Total operating lease obligations	$ 6,128	$ 17,775
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net of accumulated depreciation of $368,270 and $367,850	Property, plant and equipment, net of accumulated depreciation of $368,270 and $367,850
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other long-term assets	Other long-term assets
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities

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Leases (Lease Payments) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finance Leases Signed
2022	$ 92
2023	564
2024	381
2025	381
2026	379
Thereafter	343
Total lease payments	2,140
Less: Interest	(204)
Present Value of Net Future Minimum Lease Payments	1,936
Finance Leases Less: Leases Not Yet Commenced
2022	(4)
2023	(51)
2024	(56)
2025	(56)
2026	(56)
Thereafter	(126)
Total lease payments	(349)
Less: Interest	29
Present Value of Net Future Minimum Lease Payments	(320)
Finance Leases in Effect
2022	88
2023	513
2024	325
2025	325
2026	323
Thereafter	217
Total lease payments	1,791
Less: Interest	(175)
Total finance lease obligations	1,616	$ 407
Operating Leases Signed
2022	678
2023	2,446
2024	1,364
2025	1,021
2026	947
Thereafter	5,535
Total lease payments	11,991
Less: Interest	(2,333)
Present Value of Net Future Minimum Lease Payments	9,658
Operating Leases Less: Leases Not Yet Commenced
2022	(19)
2023	(441)
2024	(479)
2025	(498)
2026	(429)
Thereafter	(2,973)
Total lease payments	(4,839)
Less: Interest	1,309
Present Value of Net Future Minimum Lease Payments	(3,530)
Operating Leases in Effect
2022	659
2023	2,005
2024	885
2025	523
2026	518
Thereafter	2,562
Total lease payments	7,152
Less: Interest	(1,024)
Total operating lease obligations	$ 6,128	$ 17,775

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Leases (Lease Term and Discount Rate) (Details)	Sep. 30, 2022
Leases [Abstract]
Finance leases, weighted average remaining lease term (in years)	4 years 7 months 6 days
Finance leases, weighted average discount rate (as a percent)	3.76%
Operating leases, weighted average remaining lease term (in years)	6 years 1 month 6 days
Operating leases, weighted average discount rate (as a percent)	4.40%

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Pension Benefits and Other Postretirement Benefits (Additional Information) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) plan	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Jul. 30, 2020 USD ($)	Oct. 17, 2019 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Number of qualified noncontributory defined benefit plans | plan			1
Pension surplus investment balance	$ 5,461,000		$ 5,461,000		$ 5,123,000
Pension Benefits | Merged Plan
Defined Benefit Plan Disclosure [Line Items]
Pension surplus investment balance							$ 9,700,000
Contributions	0	$ 0	0	$ 0
Pension Benefits | Rogers Employee Savings and Investment Plan (RESIP) | Suspense Account Held Within a Trust
Defined Benefit Plan Disclosure [Line Items]
Plan assets					$ 9,200,000	$ 9,200,000
Pension Benefits | Union Plan
Defined Benefit Plan Disclosure [Line Items]
Additional contributions required to make for remainder of fiscal year	$ 0		$ 0

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Pension Benefits and Other Postretirement Benefits (Components of Net Periodic Benefit (Credit) Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	191	182	573	550
Expected return of plan assets	(340)	(389)	(1,020)	(1,169)
Amortization of prior service credit	0	0	0	0
Amortization of net loss	111	95	333	291
Net periodic benefit (credit) cost	(38)	(112)	(114)	(328)
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	10	16	30	46
Interest cost	8	7	24	19
Expected return of plan assets	0	0	0	0
Amortization of prior service credit	0	(25)	0	(73)
Amortization of net loss	0	0	0	0
Net periodic benefit (credit) cost	$ 18	$ (2)	$ 54	$ (8)

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Commitments and Contingencies (Additional Information) (Details) - Connecticut Voluntary Corrective Action Program $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Loss Contingencies [Line Items]
Environmental remediation expense incurred	$ 1.9
Accrual for future remediation efforts	$ 0.8

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Commitments and Contingencies (Summary of Change in Number of Asbestos Claims Outstanding) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) claim
Liability for Asbestos and Environmental Claims [Roll Forward]
Claims outstanding, beginning	543
New claims filed	101
Pending claims concluded	(107)
Claims outstanding, ending	537
Number of claims dismissed	94
Number of claims settled	13
Settlements | $	$ 1.7

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Commitments and Contingencies (Schedule of Total Estimated Liability for Asbestos) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Asbestos-related liabilities	$ 64,215	$ 68,332
Asbestos-related insurance receivables	$ 58,877	$ 62,567

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	16.00%	26.40%	20.50%	25.70%
Unrecognized tax benefits	$ 6.5		$ 6.5
Unrecognized tax benefits that would affect the effective tax rate if recognized	5.9		5.9
Unrecognized tax benefits that would result in adjustments to other tax accounts	0.6		0.6
Unrecognized tax benefits, accrual for payment of interest	$ 0.7		$ 0.7

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Operating Segment Information (Income by Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net sales	$ 247,231	$ 238,263	$ 747,467	$ 702,434
Operating income	18,476	33,799	61,763	106,737
Total Americas
Segment Reporting Information [Line Items]
Net sales	85,452	69,527	245,300	202,651
United States
Segment Reporting Information [Line Items]
Net sales	81,828	65,967	234,322	192,011
Other Americas
Segment Reporting Information [Line Items]
Net sales	3,624	3,560	10,978	10,640
Total APAC
Segment Reporting Information [Line Items]
Net sales	97,990	107,431	299,449	338,242
China
Segment Reporting Information [Line Items]
Net sales	75,765	83,001	219,230	248,942
Other APAC
Segment Reporting Information [Line Items]
Net sales	22,225	24,430	80,219	89,300
Total EMEA
Segment Reporting Information [Line Items]
Net sales	63,789	61,305	202,718	161,541
Germany
Segment Reporting Information [Line Items]
Net sales	27,430	30,687	82,311	74,017
Other EMEA
Segment Reporting Information [Line Items]
Net sales	36,359	30,618	120,407	87,524
Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	130,608	134,991	404,926	407,309
Operating income	2,263	13,945	12,342	47,082
Advanced Electronics Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	34,812	23,069	97,721	70,074
Advanced Electronics Solutions | United States
Segment Reporting Information [Line Items]
Net sales	33,969	22,119	94,907	67,740
Advanced Electronics Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	843	950	2,814	2,334
Advanced Electronics Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	52,670	64,761	173,471	221,829
Advanced Electronics Solutions | China
Segment Reporting Information [Line Items]
Net sales	36,126	47,153	113,448	155,417
Advanced Electronics Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	16,544	17,608	60,023	66,412
Advanced Electronics Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	43,126	47,161	133,734	115,406
Advanced Electronics Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	19,727	24,620	57,653	51,434
Advanced Electronics Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	23,399	22,541	76,081	63,972
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	110,983	97,951	326,313	279,131
Operating income	14,322	18,104	43,920	53,818
Elastomeric Material Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	49,306	44,753	143,890	128,460
Elastomeric Material Solutions | United States
Segment Reporting Information [Line Items]
Net sales	46,772	42,338	136,340	120,736
Elastomeric Material Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	2,534	2,415	7,550	7,724
Elastomeric Material Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	42,522	40,966	118,152	110,922
Elastomeric Material Solutions | China
Segment Reporting Information [Line Items]
Net sales	37,349	34,789	99,734	90,047
Elastomeric Material Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	5,173	6,177	18,418	20,875
Elastomeric Material Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	19,155	12,232	64,271	39,749
Elastomeric Material Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	7,310	5,892	23,784	22,057
Elastomeric Material Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	11,845	6,340	40,487	17,692
Other
Segment Reporting Information [Line Items]
Net sales	5,640	5,321	16,228	15,994
Operating income	1,891	1,750	5,501	5,837
Other | Total Americas
Segment Reporting Information [Line Items]
Net sales	1,334	1,705	3,689	4,117
Other | United States
Segment Reporting Information [Line Items]
Net sales	1,087	1,510	3,075	3,535
Other | Other Americas
Segment Reporting Information [Line Items]
Net sales	247	195	614	582
Other | Total APAC
Segment Reporting Information [Line Items]
Net sales	2,798	1,704	7,826	5,491
Other | China
Segment Reporting Information [Line Items]
Net sales	2,290	1,059	6,048	3,478
Other | Other APAC
Segment Reporting Information [Line Items]
Net sales	508	645	1,778	2,013
Other | Total EMEA
Segment Reporting Information [Line Items]
Net sales	1,508	1,912	4,713	6,386
Other | Germany
Segment Reporting Information [Line Items]
Net sales	393	175	874	526
Other | Other EMEA
Segment Reporting Information [Line Items]
Net sales	1,115	1,737	3,839	5,860
Recognized over time
Segment Reporting Information [Line Items]
Net sales	80,425	73,718	235,944	202,198
Recognized over time | Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	72,969	64,277	214,091	176,339
Recognized over time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	3,346	4,612	9,090	11,057
Recognized over time | Other
Segment Reporting Information [Line Items]
Net sales	4,110	4,829	12,763	14,802
Recognized at a point in time
Segment Reporting Information [Line Items]
Net sales	166,806	164,545	511,523	500,236
Recognized at a point in time | Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	57,639	70,714	190,835	230,970
Recognized at a point in time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	107,637	93,339	317,223	268,074
Recognized at a point in time | Other
Segment Reporting Information [Line Items]
Net sales	$ 1,530	$ 492	$ 3,465	$ 1,192

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Operating Segment Information (Contract Assets By Operating Segments) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total contract assets	$ 41,809	$ 36,610
Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Total contract assets	36,015	31,398
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Total contract assets	2,467	2,082
Other
Segment Reporting Information [Line Items]
Total contract assets	$ 3,327	$ 3,130

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Supplemental Financial Information (Restructuring and Impairment Charges) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 373	$ 622	$ 907	$ 2,875
Fixed asset impairment charges	0	385	212	385
Total impairment charges	0	385	212	385
Total restructuring and impairment charges	373	1,007	1,119	3,260
Manufacturing footprint optimization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 373	$ 622	$ 907	$ 2,875

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Supplemental Financial Information (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	$ 373	$ 1,007	$ 1,119	$ 3,260
Insurance recoveries	1,604	5,017	6,646	6,495
Professional services	369	577	1,295	2,171
Compensation & benefits	562	614	1,931	1,458
Fixed assets write-offs	0	0	0	891
Inventory charges	(1)	43	199	363
Third-party property claims	0	4,650	0	4,650
UTIS Fire
Restructuring Cost and Reserve [Line Items]
Insurance recoveries		5,000		6,500
Professional services	400	600	1,300	2,200
Compensation & benefits	600	600	1,900	1,500
Fixed assets write-offs				900
Inventory charges				400
Third-party property claims				4,700
Third-party property claims related to building				500
Deductible		300		300
AES
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	$ 400	$ 1,000	$ 1,100	$ 3,200

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Supplemental Financial Information (Severance Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Reserve [Roll Forward]
Provisions	$ 373	$ 622	$ 907	$ 2,875
Manufacturing Footprint Optimization Restructuring Severance
Restructuring Reserve [Roll Forward]
Beginning balance			1,395
Provisions			363
Payments			(1,479)
Foreign currency translation adjustment			(111)
Ending balance	$ 168		$ 168

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Supplemental Financial Information (Other Operating (Income) Expense, Net) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
UTIS fire
Fixed assets write-offs	$ 0	$ 0	$ 0	$ 891
Inventory charges	(1)	43	199	363
Professional services	369	577	1,295	2,171
Lease obligations	91	60	369	600
Lease impairments	0	495	0	495
Compensation & benefits	562	614	1,931	1,458
Third-party property claims	0	4,650	0	4,650
Other	2	0	15	76
Insurance recoveries	(1,604)	(5,017)	(6,646)	(6,495)
Total UTIS fire	(581)	1,422	(2,837)	4,209
(Gain) loss on sale or disposal of property, plant and equipment	3	9	(15)	(673)
Total other operating (income) expense, net	$ (578)	$ 1,431	$ (2,852)	$ 3,536

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Supplemental Financial Information (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Supplemental Income Statement Elements [Abstract]
Interest on revolving credit facility	$ 2,831	$ 0	$ 5,014	$ 106
Line of credit fees	118	292	409	856
Debt issuance amortization costs	178	178	536	536
Interest income	(175)	(64)	(462)	(409)
Other	(10)	35	62	363
Total interest expense, net	$ 2,942	$ 441	$ 5,559	$ 1,452

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Mergers and Acquisitions (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions			1 Months Ended
	Nov. 01, 2022	Oct. 08, 2021	Apr. 30, 2022	Nov. 01, 2021
Business Acquisition [Line Items]
Extension to holdback period			6 months
DuPont de Nemours, Inc.
Business Acquisition [Line Items]
Proceeds from contract termination	$ 162.5
Silicone Engineering Ltd.
Business Acquisition [Line Items]
Combined purchase price		$ 172.3
Holdback amount		$ 4.1	$ 1.3
Holdback period		6 months
Rogers Corporation | DuPont de Nemours, Inc.
Business Acquisition [Line Items]
Business acquisition, share price (in dollars per share)				$ 277.00
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement
Business Acquisition [Line Items]
Borrowings under credit facility		$ 190.0

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Mergers and Acquisitions (Business Acquisition, Pro Forma Information) (Details) - Silicone Engineering Ltd. - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Subsequent Event [Line Items]
Net sales	$ 248,679	$ 733,404
Net income	$ 26,419	$ 88,271