Operating Segment Information

6 Months Ended

Jun. 30, 2023

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), automotive (i.e., advanced driver assistance systems (ADAS)), aerospace and defense (i.e., antenna systems, communication systems and phased array radar systems), renewable energy (i.e., wind and solar), wireless infrastructure (i.e., power amplifiers, antennas and small cells), mass transit, industrial (variable frequency drives), connected devices (i.e., mobile internet devices and thermal solutions) and wired infrastructure (i.e., computing and internet protocol (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 EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense and footwear and impact mitigation markets; customized silicones used in flex heater and semiconductor thermal applications for EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; and 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 EV/HEV, general industrial, automotive 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 tanks, motors, and storage tanks applications in the general industrial and automotive markets.

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

(Dollars in thousands)	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended June 30, 2023
Net sales - recognized over time	$	57,131	$	7,126	$	4,007	$	68,264
Net sales - recognized at a point in time	73,041		88,223		1,293		162,557
Total net sales	$	130,172	$	95,349	$	5,300	$	230,821
Operating income	$	5,836	$	20,225	$	1,833	$	27,894
Three Months Ended June 30, 2022
Net sales - recognized over time	$	70,636	$	2,698	$	4,280	$	77,614
Net sales - recognized at a point in time	70,529		102,392		1,435		174,356
Total net sales	$	141,165	$	105,090	$	5,715	$	251,970
Operating income	$	8,775	$	12,601	$	2,020	$	23,396
Six Months Ended June 30, 2023
Net sales - recognized over time	$	119,550	$	16,092	$	7,918	$	143,560
Net sales - recognized at a point in time	146,490		181,498		3,120		331,108
Total net sales	$	266,040	$	197,590	$	11,038	$	474,668
Operating income	$	327	$	23,442	$	3,873	$	27,642
Six Months Ended June 30, 2022
Net sales - recognized over time	$	141,122	$	5,744	$	8,653	$	155,519
Net sales - recognized at a point in time	133,196		209,586		1,935		344,717
Total net sales	$	274,318	$	215,330	$	10,588	$	500,236
Operating income	$	10,079	$	29,598	$	3,610	$	43,287

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

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended June 30, 2023
United States	$	21,311	$	43,971	$	936	$	66,218
Other Americas	658		252		185		1,095
Total Americas	21,969		44,223		1,121		67,313
China	38,082		20,711		2,026		60,819
Other APAC	22,214		7,972		857		31,043
Total APAC	60,296		28,683		2,883		91,862
Germany	25,171		8,120		96		33,387
Other EMEA	22,736		14,323		1,200		38,259
Total EMEA	47,907		22,443		1,296		71,646
Total net sales	$	130,172	$	95,349	$	5,300	$	230,821
Three Months Ended June 30, 2022
United States	$	31,731	$	44,179	$	1,145	$	77,055
Other Americas	998		2,429		199		3,626
Total Americas	32,729		46,608		1,344		80,681
China	41,243		31,398		1,944		74,585
Other APAC	23,382		6,529		762		30,673
Total APAC	64,625		37,927		2,706		105,258
Germany	17,373		7,736		211		25,320
Other EMEA	26,438		12,819		1,454		40,711
Total EMEA	43,811		20,555		1,665		66,031
Total net sales	$	141,165	$	105,090	$	5,715	$	251,970

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

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Six Months Ended June 30, 2023
United States	$	42,860	$	85,840	$	2,067	$	130,767
Other Americas	2,959		9,508		316		12,783
Total Americas	45,819		95,348		2,383		143,550
China	76,518		40,886		4,425		121,829
Other APAC	47,051		14,967		1,379		63,397
Total APAC	123,569		55,853		5,804		185,226
Germany	49,172		16,154		239		65,565
Other EMEA	47,480		30,235		2,612		80,327
Total EMEA	96,652		46,389		2,851		145,892
Total net sales	$	266,040	$	197,590	$	11,038	$	474,668
Six Months Ended June 30, 2022
United States	$	60,938	$	89,568	$	1,988	$	152,494
Other Americas	1,971		5,016		367		7,354
Total Americas	62,909		94,584		2,355		159,848
China	77,322		62,385		3,758		143,465
Other APAC	43,479		13,245		1,270		57,994
Total APAC	120,801		75,630		5,028		201,459
Germany	37,926		16,474		481		54,881
Other EMEA	52,682		28,642		2,724		84,048
Total EMEA	90,608		45,116		3,205		138,929
Total net sales	$	274,318	$	215,330	$	10,588	$	500,236

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

Revenue from Contracts with Customers

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

Contract assets by operating segment were as follows:

(Dollars in thousands)	June 30, 2023	December 31, 2022
Advanced Electronics Solutions	37,025	$	33,736
Elastomeric Material Solutions	1,551	1,584
Other	3,647	3,533
Total contract assets	42,223	$	38,853

We did not have any contract liabilities as of June 30, 2023 or December 31, 2022. No impairment losses were recognized for the three- and six- month periods ended June 30, 2023 and 2022, respectively, on any receivables or contract assets arising from our contracts with customers.