[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Massachusetts
|
06-0513860
|
(State or other jurisdiction of
|
(I. R. S. Employer Identification No.)
|
incorporation or organization)
|
|
P.O. Box 188, One Technology Drive, Rogers, Connecticut
|
06263-0188
|
(Address of principal executive offices)
|
(Zip Code)
|
TABLE OF CONTENTS | |||
Part I – Financial Information
|
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3
|
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4
|
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5
|
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6
|
|||
7
|
|||
27
|
|||
40
|
|||
40
|
|||
Part II – Other Information
|
|||
40
|
|||
41
|
|||
42
|
|||
Exhibits:
|
|||
Exhibit 10.3
|
General Release and Settlement Agreement with Michael D. Bessette
|
||
Exhibit 23.1
|
Consent of National Economic Research Associates, Inc.
|
||
Exhibit 23.2
|
Consent of Marsh U.S.A., Inc.
|
||
Exhibit 31.1
|
Certification of President and CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Exhibit 31.2
|
Certification of Vice President, Finance and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Exhibit 32
|
Certification of President and CEO and Vice President, Finance and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
Exhibit 101.INS
|
XBRL Instance Document
|
||
Exhibit 101.SCH
|
XBRL Schema Document
|
||
Exhibit 101.CAL
|
XBRL Calculation Linkbase Document
|
||
Exhibit 101.LAB
|
XBRL Labels Linkbase Document
|
||
Exhibit 101.PRE
|
XBRL Presentation Linkbase Document
|
||
Exhibit 101.DEF
|
XBRL Definition Linkbase Document
|
||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 126,671 | $ | 143,501 | $ | 248,044 | $ | 279,429 | ||||||||
Cost of sales
|
89,799 | 94,930 | 174,731 | 188,316 | ||||||||||||
Gross margin
|
36,872 | 48,571 | 73,313 | 91,113 | ||||||||||||
Selling and administrative expenses
|
22,468 | 26,436 | 46,862 | 50,537 | ||||||||||||
Research and development expenses
|
4,498 | 5,628 | 9,847 | 10,837 | ||||||||||||
Restructuring and impairment charges
|
830 | - | 8,214 | - | ||||||||||||
Operating income (loss)
|
9,076 | 16,507 | 8,390 | 29,739 | ||||||||||||
Equity income in unconsolidated joint ventures
|
1,305 | 1,323 | 1,962 | 2,751 | ||||||||||||
Other income (expense), net
|
261 | 280 | 122 | 1,629 | ||||||||||||
Realized investment gain (loss):
|
||||||||||||||||
Increase (decrease) in fair value of investments
|
- | 602 | (522 | ) | 699 | |||||||||||
Less: Portion reclassified to/from other comprehensive income
|
- | 573 | 2,723 | 667 | ||||||||||||
Net realized gain (loss)
|
- | 29 | (3,245 | ) | 32 | |||||||||||
Interest income (expense), net
|
(1,072 | ) | (1,265 | ) | (2,262 | ) | (2,843 | ) | ||||||||
Income (loss) before income tax expense (benefit)
|
9,570 | 16,874 | 4,967 | 31,308 | ||||||||||||
Income tax expense (benefit)
|
3,115 | 3,442 | 213 | 6,811 | ||||||||||||
Income (loss) from continuing operations
|
6,455 | 13,432 | 4,754 | 24,497 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes
|
- | (1,304 | ) | (108 | ) | (2,934 | ) | |||||||||
Net income (loss)
|
$ | 6,455 | $ | 12,128 | $ | 4,646 | $ | 21,563 | ||||||||
Basic net income (loss) per share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | 0.40 | $ | 0.84 | $ | 0.29 | $ | 1.54 | ||||||||
Income (loss) from discontinued operations
|
- | (0.08 | ) | (0.01 | ) | (0.18 | ) | |||||||||
Net income (loss)
|
$ | 0.40 | $ | 0.76 | $ | 0.28 | $ | 1.36 | ||||||||
Diluted net income (loss) per share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | 0.38 | $ | 0.81 | $ | 0.28 | $ | 1.48 | ||||||||
Income (loss) from discontinued operations
|
- | (0.08 | ) | (0.01 | ) | (0.18 | ) | |||||||||
Net income (loss)
|
$ | 0.38 | $ | 0.73 | $ | 0.27 | $ | 1.30 | ||||||||
Comprehensive income (loss)
|
$ | (4,445 | ) | $ | 18,846 | $ | 1,140 | $ | 43,326 | |||||||
Shares used in computing:
|
||||||||||||||||
Basic
|
16,309,053 | 15,944,483 | 16,270,955 | 15,918,978 | ||||||||||||
Diluted
|
16,864,166 | 16,678,377 | 16,842,768 | 16,603,543 | ||||||||||||
June 30, 2012
|
December 31, 2011
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 95,786 | $ | 79,728 | ||||
Accounts receivable, less allowance for doubtful accounts of $1,315 and $1,040
|
81,767 | 77,682 | ||||||
Accounts receivable from joint ventures
|
2,418 | 1,640 | ||||||
Accounts receivable, other
|
3,325 | 3,819 | ||||||
Taxes receivable
|
1,719 | 2,713 | ||||||
Inventories
|
74,678 | 78,320 | ||||||
Prepaid income taxes
|
4,934 | 4,315 | ||||||
Deferred income taxes
|
1,893 | 2,146 | ||||||
Asbestos-related insurance receivables
|
6,471 | 6,459 | ||||||
Other current assets
|
9,989 | 7,360 | ||||||
Assets held for sale
|
- | 1,400 | ||||||
Assets of discontinued operations
|
- | 50 | ||||||
Total current assets
|
282,980 | 265,632 | ||||||
Property, plant and equipment, net of accumulated depreciation of $206,509 and $198,075
|
146,472 | 148,182 | ||||||
Investments in unconsolidated joint ventures
|
22,774 | 23,868 | ||||||
Deferred income taxes
|
20,650 | 20,117 | ||||||
Goodwill and other intangibles
|
153,835 | 158,627 | ||||||
Asbestos-related insurance receivables
|
21,262 | 21,943 | ||||||
Investments, other
|
5,000 | 5,000 | ||||||
Other long-term assets
|
8,189 | 8,299 | ||||||
Long-term marketable securities
|
- | 25,960 | ||||||
Total assets
|
$ | 661,162 | $ | 677,628 | ||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 15,561 | $ | 15,787 | ||||
Accrued employee benefits and compensation
|
33,315 | 30,135 | ||||||
Accrued income taxes payable
|
31 | 1,799 | ||||||
Current portion of lease obligation
|
1,560 | 1,596 | ||||||
Current portion of long term debt
|
27,500 | 7,500 | ||||||
Asbestos-related liabilities
|
6,471 | 6,459 | ||||||
Other accrued liabilities
|
10,376 | 15,368 | ||||||
Liabilities of discontinued operations
|
- | 153 | ||||||
Total current liabilities
|
94,814 | 78,797 | ||||||
Long term debt
|
92,500 | 115,000 | ||||||
Long term lease obligation
|
6,955 | 7,610 | ||||||
Pension liability
|
52,862 | 68,871 | ||||||
Retiree health care and life insurance benefits
|
9,486 | 9,486 | ||||||
Asbestos-related liabilities
|
21,468 | 22,326 | ||||||
Non-current income tax
|
18,628 | 17,588 | ||||||
Deferred income taxes
|
18,489 | 19,259 | ||||||
Other long-term liabilities
|
617 | 435 | ||||||
Shareholders’ Equity
|
||||||||
Capital Stock - $1 par value; 50,000,000 authorized shares; 16,395,739 and
|
||||||||
16,220,648 shares outstanding
|
16,396 | 16,221 | ||||||
Additional paid-in capital
|
58,510 | 52,738 | ||||||
Retained earnings
|
336,745 | 332,099 | ||||||
Accumulated other comprehensive income (loss)
|
(66,308 | ) | (62,802 | ) | ||||
Total shareholders' equity
|
345,343 | 338,256 | ||||||
Total liabilities and shareholders' equity
|
$ | 661,162 | $ | 677,628 | ||||
(Dollars in thousands)
|
Capital
Stock
|
Additional Paid-In Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total Shareholders’ Equity
|
|||||||||||||||
Balance at December 31, 2011
|
$ | 16,221 | $ | 52,738 | $ | 332,099 | $ | (62,802 | ) | $ | 338,256 | |||||||||
Comprehensive income (loss):
|
||||||||||||||||||||
Net income (loss):
|
- | - | 4,646 | - | 4,646 | |||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||
Foreign currency translation, net of tax
|
- | - | - | (4,886 | ) | (4,886 | ) | |||||||||||||
Unrealized loss on marketable securities, net of tax
|
- | - | - | 1,168 | 1,168 | |||||||||||||||
Unrealized loss on derivative instruments, net of tax
|
- | - | - | 212 | 212 | |||||||||||||||
Total comprehensive income (loss)
|
- | - | 4,646 | (3,506 | ) | 1,140 | ||||||||||||||
Stock options exercised
|
115 | 3,312 | - | - | 3,427 | |||||||||||||||
Stock issued to directors
|
15 | (15 | ) | - | - | - | ||||||||||||||
Shares issued for employees stock purchase plan
|
15 | 398 | - | - | 413 | |||||||||||||||
Shares issued for restricted stock
|
30 | (601 | ) | (571 | ) | |||||||||||||||
Stock-based compensation expense
|
- | 2,678 | - | - | 2,678 | |||||||||||||||
Balance at June 30, 2012
|
$ | 16,396 | $ | 58,510 | $ | 336,745 | $ | (66,308 | ) | $ | 345,343 | |||||||||
Six Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
Operating Activities:
|
||||||||
Net income (loss)
|
$ | 4,646 | $ | 21,563 | ||||
Loss (earnings) from discontinued operations
|
108 | 2,934 | ||||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
13,561 | 13,149 | ||||||
Stock-based compensation expense
|
2,678 | 3,610 | ||||||
Loss from long-term investments
|
3,245 | - | ||||||
Deferred income taxes
|
(1,050 | ) | 2,148 | |||||
Equity in undistributed income of unconsolidated joint ventures, net
|
(1,962 | ) | (2,751 | ) | ||||
Dividends received from unconsolidated joint ventures
|
2,929 | 2,762 | ||||||
Pension and postretirement benefits
|
6,718 | 2,970 | ||||||
Gain from the sale of property, plant and equipment
|
(579 | ) | (1,900 | ) | ||||
Impairment of assets
|
539 | - | ||||||
Amortization of inventory fair value
|
- | 1,805 | ||||||
Changes in operating assets and liabilities excluding effects of
|
||||||||
acquisition and disposition of businesses:
|
||||||||
Accounts receivable
|
(3,340 | ) | (12,114 | ) | ||||
Accounts receivable, joint ventures
|
(778 | ) | (917 | ) | ||||
Inventories
|
3,018 | (12,107 | ) | |||||
Pension contribution
|
(16,000 | ) | - | |||||
Other current assets
|
(3,331 | ) | (3,203 | ) | ||||
Accounts payable and other accrued expenses
|
(7,433 | ) | (22,097 | ) | ||||
Other, net
|
1,332 | 767 | ||||||
Net cash provided by (used in) operating activities of continuing operations
|
4,301 | (3,381 | ) | |||||
Net cash provided by (used in) operating activites of discontinued operations
|
- | (2,979 | ) | |||||
Net cash provided by (used in) operating activites
|
4,301 | (6,360 | ) | |||||
Investing Activities:
|
||||||||
Capital expenditures
|
(10,767 | ) | (8,006 | ) | ||||
Proceeds from short-term investments
|
25,438 | 4,000 | ||||||
Proceeds from the sale of property, plant and equipment, net
|
1,979 | 5,900 | ||||||
Deferred purchase price for previous acquisition of business
|
(3,100 | ) | - | |||||
Acquisition of business, net of cash received
|
- | (139,825 | ) | |||||
Net cash provided by (used in) investing activities of continuing operations
|
13,550 | (137,931 | ) | |||||
Financing Activities:
|
||||||||
Proceeds from long term borrowings
|
- | 145,000 | ||||||
Repayment of debt principal and long term lease obligation
|
(2,992 | ) | (10,000 | ) | ||||
Payment of long term borrowings acquired through acquisition
|
- | (7,452 | ) | |||||
Proceeds from sale of capital stock, net
|
3,427 | 5,464 | ||||||
Issuance of restricted stock shares
|
(571 | ) | - | |||||
Proceeds from issuance of shares to employee stock purchase plan
|
413 | 396 | ||||||
Net cash provided by (used in) financing activities of continuing operations
|
277 | 133,408 | ||||||
Effect of exchange rate fluctuations on cash
|
(2,070 | ) | 2,395 | |||||
Net increase (decrease) in cash and cash equivalents
|
16,058 | (8,488 | ) | |||||
Cash and cash equivalents at beginning of year
|
79,728 | 80,135 | ||||||
Cash and cash equivalents at end of quarter
|
$ | 95,786 | $ | 71,647 | ||||
Supplemental disclosure of noncash investing and financing activities
|
||||||||
Capital lease obligation acquired through acquisition
|
$ | - | $ | 10,831 |
|
●
|
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.
|
(Dollars in thousands)
|
Carrying amount as of
June 30, 2012
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Foreign currency option contracts
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Copper derivative contracts
|
(82 | ) | - | (82 | ) | - |
(Dollars in thousands)
|
Auction Rate
Securities
|
|||
Balance at December 31, 2011
|
$ | 25,960 | ||
Cash received for redemptions at par
|
- | |||
Cash received for redemptions below par
|
(25,438 | ) | ||
Reclassified from other comprehensive income
|
2,723 | |||
Reported in earnings
|
(3,245 | ) | ||
Balance at June 30, 2012
|
$ | - |
(Dollars in thousands)
|
||||
Credit Losses
|
||||
Balance at December 31, 2010
|
$ | 917 | ||
Credit losses recorded
|
39 | |||
Reduction in credit losses due to redemptions
|
(71 | ) | ||
Balance at June 30, 2011
|
$ | 885 |
Notional Value of Copper Derivatives
|
|
Copper
|
70 metric tons per month
|
(Dollars in thousands)
|
The Effect of Current Derivative Instruments
on the Financial Statements for the six-month
period ended June 30, 2012
|
Fair Values of
Derivative Instruments
as of June 30, 2012
|
||||||||
Foreign Exchange Option Contracts
|
Location of gain (loss)
|
Amount of
gain (loss)
|
Other Assets
(Liabilities)
|
|||||||
Contracts not designated as hedging instruments
|
Other income, net
|
$ | 81 | $ | - | |||||
Copper Derivative Instruments
|
||||||||||
Contracts designated as hedging instruments
|
Other comprehensive
income (loss)
|
(82 | ) | (82 | ) |
(Dollars in thousands)
|
||||
Assets:
|
||||
Cash
|
$ | 11,256 | ||
Accounts receivable
|
11,876 | |||
Other current assets
|
1,386 | |||
Inventory
|
12,259 | |||
Property, plant & equipment
|
32,312 | |||
Other non-current assets
|
2,276 | |||
Intangible assets
|
52,354 | |||
Goodwill
|
79,837 | |||
Total assets
|
203,556 | |||
Liabilities
|
||||
Accounts payable
|
6,053 | |||
Other current liabilities
|
20,427 | |||
Deferred tax liability
|
9,329 | |||
Other long-term liabilities
|
16,666 | |||
Total liabilities
|
52,475 | |||
Fair value of net assets acquired
|
$ | 151,081 | ||
June 30,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2012
|
2011
|
||||||
Raw materials
|
$ | 30,517 | $ | 30,655 | ||||
Work-in-process
|
15,982 | 14,919 | ||||||
Finished goods
|
28,179 | 32,746 | ||||||
$ | 74,678 | $ | 78,320 | |||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(Dollars in thousands)
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income (loss)
|
$ | 6,455 | $ | 12,128 | $ | 4,646 | $ | 21,563 | ||||||||
Foreign currency translation adjustments
|
(10,857 | ) | 6,298 | (4,886 | ) | 21,262 | ||||||||||
Unrealized gain (loss) on marketable securities, net of tax
|
- | 420 | 1,168 | 501 | ||||||||||||
Unrealized gain (loss) on derivative instruments, net of tax
|
(43 | ) | - | 212 | - | |||||||||||
Comprehensive income (loss)
|
$ | (4,445 | ) | $ | 18,846 | $ | 1,140 | $ | 43,326 | |||||||
June 30,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2012
|
2011
|
||||||
Foreign currency translation adjustments
|
$ | 989 | $ | 5,875 | ||||
Funded status of pension plans and other postretirement benefits, net of tax
|
(67,239 | ) | (67,239 | ) | ||||
Unrealized gain (loss) on derivative instruments, net of tax
|
(58 | ) | (270 | ) | ||||
Unrealized gain (loss) on marketable securities, net of tax
|
- | (1,168 | ) | |||||
Accumulated other comprehensive income (loss)
|
$ | (66,308 | ) | $ | (62,802 | ) | ||
(In thousands, except per share amounts)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Numerator:
|
||||||||||||||||
Income (loss)
|
$ | 6,455 | $ | 13,432 | $ | 4,754 | $ | 24,497 | ||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per share -
|
||||||||||||||||
Weighted-average shares
|
16,309 | 15,945 | 16,271 | 15,919 | ||||||||||||
Effect of dilutive stock options
|
555 | 733 | 572 | 685 | ||||||||||||
Denominator for diluted earnings per share - Adjusted
|
||||||||||||||||
weighted-average shares and assumed conversions
|
16,864 | 16,678 | 16,843 | 16,604 | ||||||||||||
Basic income (loss) per share:
|
$ | 0.40 | $ | 0.84 | $ | 0.29 | $ | 1.54 | ||||||||
Diluted income (loss) per share:
|
0.38 | 0.81 | 0.28 | 1.48 | ||||||||||||
Three Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
Anti-dilutive shares excluded
|
932,104 | 722,903 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
2012
|
June 30,
2011
|
June 30,
2012
|
June 30,
2011
|
|||||||||||||
Options granted
|
- | 58,550 | 46,950 | 58,550 | ||||||||||||
Weighted average exercise price
|
$ | - | $ | 47.89 | $ | 41.27 | $ | 47.89 | ||||||||
Weighted-average grant date fair value
|
- | 22.30 | 19.08 | 22.30 | ||||||||||||
Assumptions:
|
||||||||||||||||
Expected volatility
|
- | 45.15 | % | 47.70 | % | 45.15 | % | |||||||||
Expected term (in years)
|
- | 6.0 | 5.9 | 6.0 | ||||||||||||
Risk-free interest rate
|
- | 2.64 | % | 1.43 | % | 2.64 | % | |||||||||
Expected dividend yield
|
- | - | - | - |
Options
Outstanding
|
Weighted-
Average
Exercise Price
Per Share
|
Weighted-Average Remaining
Contractual Life in Years
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Options outstanding at March 31, 2012
|
2,440,999 | $ | 37.59 | 4.9 | $ | 14,667,018 | ||||||||||
Options granted
|
- | - | ||||||||||||||
Options exercised
|
(112,531 | ) | 29.74 | |||||||||||||
Options cancelled
|
(28,999 | ) | 46.78 | |||||||||||||
Options outstanding at June 30, 2012
|
2,299,469 | 38.07 | 4.8 | 14,513,131 | ||||||||||||
Options exercisable at June 30, 2012
|
1,594,269 | 41.39 | 3.7 | 7,279,532 | ||||||||||||
Options vested or expected to vest at June 30, 2012*
|
2,273,222 | 38.19 | 4.7 | 14,247,752 | ||||||||||||
Options
Outstanding
|
Weighted-
Average
Exercise Price
Per Share
|
|||||||
Options outstanding at December 31, 2011
|
2,401,809 | $ | 37.54 | |||||
Options granted
|
46,950 | 41.27 | ||||||
Options exercised
|
(116,491 | ) | 29.72 | |||||
Options cancelled
|
(32,799 | ) | 44.06 | |||||
Options outstanding at June 30, 2012
|
2,299,469 |
Performance
Based Restricted
Stock Awards
|
||||
Non-vested awards outstanding at December 31, 2011
|
101,730 | |||
Awards granted
|
22,120 | |||
Stock issued
|
(43,750 | ) | ||
Awards forfeited
|
(6,642 | ) | ||
Non-vested awards outstanding at June 30, 2012
|
73,458 | |||
Time-Based
Restricted
Stock Awards
|
||||
Non-vested awards outstanding at December 31, 2011
|
86,707 | |||
Awards granted
|
46,180 | |||
Stock issued
|
(980 | ) | ||
Awards forfeited
|
(3,782 | ) | ||
Non-vested awards outstanding at June 30, 2012
|
128,125 | |||
Deferred Stock
Units |
||||
Non-vested awards outstanding at December 31, 2011
|
27,350 | |||
Awards granted
|
17,600 | |||
Stock issued
|
(14,800 | ) | ||
Awards forfeited
|
- | |||
Non-vested awards outstanding at June 30, 2012
|
30,150 | |||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Pension Benefits
|
Retirement Health and Life Insurance Benefits
|
|||||||||||||||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||||||||
Change in benefit obligation:
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||
Service cost
|
$ | 1,108 | $ | 1,060 | $ | 2,297 | $ | 2,120 | $ | 149 | $ | 176 | $ | 331 | $ | 352 | ||||||||||||||||
Interest cost
|
2,124 | 2,116 | 4,242 | 4,232 | 92 | 97 | 180 | 194 | ||||||||||||||||||||||||
Expected return on plan assets
|
(2,495 | ) | (2,591 | ) | (4,903 | ) | (5,182 | ) | - | - | - | - | ||||||||||||||||||||
Amortization of prior service cost
|
116 | 150 | 232 | 300 | (113 | ) | (157 | ) | (226 | ) | (314 | ) | ||||||||||||||||||||
Amortization of net loss
|
1,442 | 553 | 2,791 | 1,106 | 66 | 81 | 181 | 162 | ||||||||||||||||||||||||
Special termination benefit
|
- | - | - | - | - | - | 2,300 | - | ||||||||||||||||||||||||
Adjustment to termination benefit
|
- | - | - | - | (707 | ) | - | (707 | ) | - | ||||||||||||||||||||||
Net periodic benefit cost
|
$ | 2,295 | $ | 1,288 | $ | 4,659 | $ | 2,576 | $ | (513 | ) | $ | 197 | $ | 2,059 | $ | 394 | |||||||||||||||
Segment Structure
|
||
Core Strategic
|
||
High Performance Foams
|
||
Printed Circuit Materials
|
||
Power Electronics Solutions
|
||
Curamik Electronics Solutions
|
||
Power Distribution Systems
|
||
Other
|
(Dollars in thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
||||||||||||||||
Core Strategic
|
||||||||||||||||
High Performance Foams
|
$ | 43,329 | $ | 44,021 | $ | 83,763 | $ | 83,156 | ||||||||
Printed Circuit Materials
|
40,533 | 43,375 | 79,914 | 86,228 | ||||||||||||
Power Electronics Solutions
|
||||||||||||||||
Curamik Electronics Solutions
|
23,908 | 34,613 | 48,200 | 67,510 | ||||||||||||
Power Distribution Systems
|
11,573 | 13,978 | 22,089 | 26,413 | ||||||||||||
Other
|
7,328 | 7,514 | 14,078 | 16,122 | ||||||||||||
Net sales
|
126,671 | 143,501 | 248,044 | 279,429 | ||||||||||||
Operating income (loss)
|
||||||||||||||||
Core Strategic
|
||||||||||||||||
High Performance Foams
|
5,708 | 6,658 | 7,153 | 11,293 | ||||||||||||
Printed Circuit Materials
|
3,123 | 4,405 | 2,777 | 9,234 | ||||||||||||
Power Electronics Solutions
|
||||||||||||||||
Curamik Electronics Solutions
|
(1,205 | ) | 2,855 | (2,978 | ) | 3,157 | ||||||||||
Power Distribution Systems
|
135 | 1,644 | (515 | ) | 3,909 | |||||||||||
Other
|
1,315 | 945 | 1,953 | 2,146 | ||||||||||||
Operating income (loss)
|
9,076 | 16,507 | 8,390 | 29,739 | ||||||||||||
Equity income in unconsolidated joint ventures
|
1,305 | 1,323 | 1,962 | 2,751 | ||||||||||||
Other income (expense), net
|
261 | 280 | 122 | 1,629 | ||||||||||||
Net realized investment gain (loss)
|
- | 29 | (3,245 | ) | 32 | |||||||||||
Interest income (expense), net
|
(1,072 | ) | (1,265 | ) | (2,262 | ) | (2,843 | ) | ||||||||
Income (loss) before income tax expense (benefit)
|
$ | 9,570 | $ | 16,874 | $ | 4,967 | $ | 31,308 | ||||||||
Joint Venture
|
Location
|
Reportable Segment
|
Fiscal Year-End
|
Rogers INOAC Corporation (RIC)
|
Japan
|
High Performance Foams
|
October 31
|
Rogers INOAC Suzhou Corporation (RIS)
|
China
|
High Performance Foams
|
December 31
|
(Dollars in thousands)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 15,880 | $ | 16,783 | $ | 28,685 | $ | 34,863 | ||||||||
Gross profit (loss)
|
2,608 | 3,211 | 4,433 | 7,535 | ||||||||||||
Net income (loss)
|
2,610 | 2,646 | 3,924 | 5,502 |
2011
|
$2.5 million
|
||
2012
|
$7.5 million
|
||
2013
|
$12.5 million
|
||
2014
|
$17.5 million
|
||
2015
|
$35.0 million
|
||
2016
|
$25.0 million
|
Periods
|
Q4 2011
|
Q1 2012
|
Q2 2012
|
Covenant Limit
|
2.5x
|
1.25x
|
1.25x
|
Actual FCCR
|
2.60
|
2.27
|
2.09
|
|
●
|
$1.1 million letter of credit to guarantee Rogers workers compensation plan;
|
|
●
|
$0.6 million letter guarantee to guarantee a payable obligation for a Chinese subsidiary (Rogers Suzhou).
|
(Dollars in thousands)
|
June 30, 2012
|
December 31, 2011
|
||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated Amortization
|
Net Carrying
Amount
|
|||||||||||||||||||
Trademarks and patents
|
$ | 1,006 | $ | 177 | $ | 829 | $ | 879 | $ | 140 | $ | 739 | ||||||||||||
Technology
|
35,095 | 6,335 | $ | 28,760 | 35,769 | 4,655 | 31,114 | |||||||||||||||||
Covenant-not-to-compete
|
968 | 235 | $ | 733 | 956 | 135 | 821 | |||||||||||||||||
Customer relationships
|
19,544 | 1,625 | $ | 17,919 | 19,851 | 1,315 | 18,536 | |||||||||||||||||
Total other intangible assets
|
$ | 56,613 | $ | 8,372 | $ | 48,241 | $ | 57,455 | $ | 6,245 | $ | 51,210 | ||||||||||||
Intangible Asset Class
|
Weighted Average
Amortization Period
|
Trademarks and patents
|
9.1
|
Technology
|
6.1
|
Covenant not-to-compete
|
3.7
|
Customer relationships
|
9.3
|
Total other intangible assets
|
7.3
|
(Dollars in thousands)
|
High
Performance
Foams
|
Printed
Circuit
Materials
|
Curamik
Electronics
Solutions
|
Power
Distribution
Systems
|
Other
|
Total
|
||||||||||||||||||
December 31, 2011
|
$ | 22,597 | $ | - | $ | 77,357 | $ | - | $ | 2,224 | $ | 102,178 | ||||||||||||
Foreign currency translation adjustment
|
||||||||||||||||||||||||
195 | - | (1,779 | ) | - | - | (1,584 | ) | |||||||||||||||||
June 30, 2012
|
$ | 22,792 | $ | - | $ | 75,578 | $ | - | $ | 2,224 | $ | 100,594 | ||||||||||||
●
|
Claims
|
●
|
Defenses
|
●
|
Dismissals and Settlements
|
●
|
Potential Liability
|
●
|
Insurance Coverage
|
●
|
Cost Sharing Agreement
|
●
|
Impact on Financial Statements
|
●
|
In the second quarter of 2010, the CT DEEP contacted us to discuss a disposal site in Killingly, Connecticut. We are currently in the very early stages of evaluating this matter and have initiated internal due diligence work related to the site to better understand the issue and our alleged involvement. Currently, we do not know the nature and extent of any alleged contamination at the site, how many parties could be potentially involved in any remediation, if necessary, or the extent to which we could be deemed a potentially responsible party. CT DEEP has not made any assessment of the nature of any potential remediation work that may be done, nor have they made any indication of any potential costs associated with such remediation. Therefore, based on the facts and circumstances known to us at the present time, we are not able to estimate the probability of incurring a contingent liability related to this site, nor or we able to reasonably estimate any potential range of exposure at this time. As such, no reserve has been established for this matter at this time. We continually monitor this situation and are in correspondence with the CT DEEP as appropriate. When and if facts and circumstances related to this mater change, we will review our position and our ability to estimate the probability of any potential loss contingencies, as well as the range of any such potential exposure.
|
●
|
The Rogers Corporate Headquarters located in Rogers, Connecticut is part of the Connecticut Voluntary Corrective Action Program (VCAP). As part of this program, we have recently started conversations with the CT DEEP to begin to determine if any corrective actions need to be taken at the site related to any potential contamination issues. We are currently in the very early stages of this evaluating this matter and have initiated internal due diligence work related to the site to better understand any potential issues. However, at this time, it is currently unknown what the nature and extent of any potential contamination is at the site, nor what any potential remediation or associated costs would be if any such issues were found. Therefore, based on the facts and circumstances known to us at the present time, we are unable to estimate the probability of incurring a contingent liability related to this site, nor or we able to reasonably estimate any potential range of exposure at this time. As such, no reserve has been established for this matter at this time.
|
●
|
Implementing an early retirement program for certain eligible employees;
|
●
|
Realigning our organizational structure by consolidating a number of senior executive positions, reorganizing certain business functions and redeploying resources across the Company;
|
●
|
Exiting the Thermal Management Solutions business (previously announced in the fourth quarter of 2011);
|
●
|
Initiating a plan to shut down the Power Distribution Systems startup operation in North America, which is anticipated to be completed in the third quarter of 2012; and
|
●
|
Liquidating our remaining auction rate securities.
|
●
|
We announced the shutdown of the High Performance Foams manufacturing facility in Bremen, Germany, which is scheduled to be completed by the end of 2012. The manufacture of certain silicone foam materials produced in the Bremen facility will be consolidated into our existing facility in Carol Stream, Illinois. The expenses and charges related to the termination of the operations at the Bremen facility are estimated to be approximately $3.1 million and are comprised primarily of (i) $0.9 million for the early termination of the lease on the building; (ii) $0.8 million for severance charges for employees in Bremen; (iii) $1.1 million impairment of certain assets; and (iv) $0.3 million of costs to remove and transport certain equipment to Carol Stream and prepare the building for return to the landlord. We recognized approximately $1.5 million of these charges in the second quarter of 2012, and expect to recognize the remaining charges in the second half of 2012.
|
●
|
We made the decision to cease production of our non-woven composite materials products in an effort to redeploy resources to focus on our Core Strategic segments. Sales of these products have been steadily declining for several years and totaled approximately $1.4 million in the second quarter of 2012 and $4.8 million in fiscal 2011. The shutdown of production is expected to occur by the end of 2012 and is not expected to have a material impact on our overall operations. No material charges are expected from this initiative.
|
(Dollars in thousands)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
Cost of Sales
|
June 30, 2012
|
June 30, 2012
|
||||||
High Performance Foams
|
||||||||
Accelerated depreciation expense related to Bremen shut-down
|
$ | 585 | $ | 585 | ||||
Inventory impairment related to Bremen shut-down
|
191 | $ | 191 | |||||
Power Distribution Systems
|
||||||||
Accelerated depreciation expense related to U.S. shut-down
|
360 | 360 | ||||||
Total charges for cost of sales
|
$ | 1,136 | $ | 1,136 | ||||
Restructuring and Impairment
|
||||||||
High Performance Foams
|
||||||||
Fixed asset impairment for Bisco and Poron asset disposal
|
$ | - | $ | 79 | ||||
Severance and related costs (1)
|
670 | $ | 3,088 | |||||
Power Distribution Systems
|
||||||||
Impairment of investment related receivable
|
264 | 264 | ||||||
Severance and related costs (1)
|
(13 | ) | 477 | |||||
Printed Circuit Materials
|
||||||||
Severance and related costs (1)
|
(276 | ) | $ | 3,046 | ||||
Curamik Electronics Solutions
|
||||||||
Severance and related costs (1)
|
213 | 957 | ||||||
Other
|
||||||||
Severance and related costs (1)
|
(28 | ) | 303 | |||||
Total charges for restructuring and impairment
|
$ | 830 | $ | 8,214 | ||||
(Dollars in thousands)
|
||||
June 30, 2012
|
||||
Balance at March 31, 2012
|
$ | 4,545 | ||
Provisions
|
1,273 | |||
Payments
|
(1,911 | ) | ||
Balance at June 30, 2012
|
$ | 3,907 | ||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Gross margin
|
29.1 | % | 33.8 | % | 29.6 | % | 32.6 | % | ||||||||
Selling and administrative expenses
|
17.7 | % | 18.4 | % | 18.9 | % | 18.1 | % | ||||||||
Research and development expenses
|
3.6 | % | 3.9 | % | 4.0 | % | 3.9 | % | ||||||||
Restructuring and impairment charges
|
0.7 | % | 0.0 | % | 3.3 | % | 0.0 | % | ||||||||
Operating income (loss)
|
7.2 | % | 11.5 | % | 3.4 | % | 10.6 | % | ||||||||
Equity income in unconsolidated joint ventures
|
1.0 | % | 0.9 | % | 0.8 | % | 1.0 | % | ||||||||
Other income (loss), net
|
0.2 | % | 0.2 | % | 0.0 | % | 0.6 | % | ||||||||
Net realized gains (losses)
|
0.0 | % | 0.0 | % | (1.3 | %) | 0.0 | % | ||||||||
Interest income (expense), net
|
(0.8 | %) | (0.9 | %) | (0.9 | %) | (1.0 | %) | ||||||||
Income (loss) before income taxes
|
7.6 | % | 11.8 | % | 2.0 | % | 11.2 | % | ||||||||
Income tax expense (benefit)
|
2.5 | % | 2.4 | % | 0.1 | % | 2.4 | % | ||||||||
Income (loss) from continuing operations
|
5.1 | % | 9.4 | % | 1.9 | % | 8.8 | % | ||||||||
(Dollars in millions)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 43.3 | $ | 44.0 | $ | 83.8 | $ | 83.2 | ||||||||
Operating income (loss)
|
5.7 | 6.7 | 7.2 | 11.3 |
(Dollars in millions)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 40.5 | $ | 43.4 | $ | 79.9 | $ | 86.2 | ||||||||
Operating income (loss)
|
3.1 | 4.4 | 2.8 | 9.2 |
|
●
|
Curamik Electronics Solutions
|
(Dollars in millions)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 23.9 | $ | 34.6 | $ | 48.2 | $ | 67.5 | ||||||||
Operating income (loss)
|
(1.2 | ) | 2.9 | (3.0 | ) | 3.2 |
|
●
|
Power Distribution Systems
|
(Dollars in millions)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 11.6 | $ | 14.0 | $ | 22.1 | $ | 26.4 | ||||||||
Operating income (loss)
|
0.1 | 1.6 | (0.5 | ) | 3.9 |
(Dollars in millions)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
|||||||||||||
Net sales
|
$ | 7.3 | $ | 7.5 | $ | 14.1 | $ | 16.1 | ||||||||
Operating income (loss)
|
1.3 | 0.9 | 2.0 | 2.2 |
(Dollars in thousands)
|
June 30, 2012
|
December 31, 2011
|
||||||
Key Balance Sheet Accounts:
|
||||||||
Cash and cash equivalents
|
$ | 95,786 | $ | 79,728 | ||||
Accounts receivable
|
81,767 | 77,682 | ||||||
Inventory
|
74,678 | 78,320 | ||||||
Outstanding borrowing on credit facilities (short term and long term)
|
120,000 | 122,500 | ||||||
Six Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
Key Cash Flow Measures:
|
||||||||
Cash provided by (used in) operating activities of continuing operations
|
$ | 4,301 | $ | (3,381 | ) | |||
Cash provided by (used in) investing activities of continuing operations
|
13,550 | (137,931 | ) | |||||
Cash provided by (used in) financing activities of continuing operations
|
277 | 133,408 | ||||||
(Dollars in thousands)
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
U.S.
|
$ | 24,168 | $ | 20,027 | ||||
Europe
|
35,404 | 35,259 | ||||||
Asia
|
36,214 | 24,442 | ||||||
Total cash and cash equivalents
|
$ | 95,786 | $ | 79,728 | ||||
|
o
|
Accounts receivable increased $4.1 million, or 5.3%, from $77.7 million at December 31, 2011 to $81.8 million at June 30, 2012. Due primarily to increased sales volume at June 30, 2012 versus December 31, 2011. The Days Sales Outstanding has remained relatively consistent period to period.
|
|
o
|
Inventories decreased $3.5 million, or 4.4%, from $78.3 million at December 31, 2011 to $74.9 million at June 30, 2012. This decrease is primarily attributable to our focus on working capital management and lowering inventory levels to better match current demand.
|
|
o
|
Long-term marketable securities declined by $25.9 million from December 31, 2011 due to the liquidation of our auction rate securities portfolio. As of June 30, 2012, we do not have any long-term marketable securities on our balance sheet.
|
|
o
|
Accrued employee benefits and compensation increased by $3.3 million, or 10.8%, from $30.1 million at December 31, 2011 to $33.4 million at June 30, 2012. This increase was due to the accrual of the first six (months of the 2012 portion of our pension and postretirement benefit costs of $5.1 million, as well as a curtailment charge related to the acceleration of $1.6 million of costs associated with postretirement benefit obligations as a result of the early retirement program that occurred in the first quarter of 2012. Also contributing to this increase is the $4.0 million severance accrual related to the restructuring program put in place in the first quarter of 2012. These increases to the accrual were offset by the payout of the 2012 annual incentive compensation plan of $6.6 million.
|
|
o
|
Current portion of long term debt increased $20.0 million from December 31, 2011 to June 30, 2012, to $27.5 million. This increase is due to management anticipating additional voluntary principal payments, in our debt facility, over the next twelve months.
|
|
o
|
Pension liability declined by 23.2% from $68.9 million at December 31, 2011 to $52.9 million at June 30, 2012 due to $16.0 million in contributions made to the defined benefit pension plan during the first half of 2012.
|
|
o
|
Other accrued liabilities declined by 32.5% from $15.4 million at December 31, 2011 to $10.4 million at June 30, 2012 due to a $3.1 million payment of the deferred purchase price on the acquisition of SK Utis Co., Ltd, which was consummated in the first quarter of 2009.
|
2011
|
$2.5 million
|
||
2012
|
$7.5 million
|
||
2013
|
$12.5 million
|
||
2014
|
$17.5 million
|
||
2015
|
$35.0 million
|
||
2016
|
$25.0 million
|
Periods
|
Q4 2011
|
Q1 2012
|
Q2 2012
|
Covenant Limit
|
2.5x
|
1.25x
|
1.25x
|
Actual FCCR
|
2.60
|
2.27
|
2.09
|
|
●
|
$1.1 million letter of credit to guarantee Rogers workers compensation plan;
|
|
●
|
$0.6 million letter guarantee to guarantee a payable obligation for a Chinese subsidiary (Rogers Suzhou).
|
(Dollars in thousands)
|
Payments Due by Period
|
|||||||||||||||||||
Total
|
Less than 1 Year
|
1-3 Years
|
3-5 Years
|
More than 5 Years
|
||||||||||||||||
Operating leases
|
$ | 7,617 | $ | 1,327 | $ | 3,888 | $ | 1,893 | $ | 509 | ||||||||||
Capital lease
|
8,515 | 1,560 | 1,746 | 1,550 | 3,659 | |||||||||||||||
Interest payments on capital lease
|
3,796 | 549 | 955 | 867 | 1,425 | |||||||||||||||
Inventory purchase obligation
|
2,777 | 2,777 | - | - | - | |||||||||||||||
Capital commitments
|
2,542 | 2,542 | - | - | - | |||||||||||||||
Pension and retiree health and life insurance benefits (1)
|
95,067 | 6,208 | 17,023 | 17,925 | 53,911 | |||||||||||||||
Outstanding borrowings on credit facilities
|
120,000 | 27,500 | 50,000 | 42,500 | - | |||||||||||||||
Interest payments on outstanding borrowings (2)
|
9,258 | 3,068 | 4,770 | 1,420 | - | |||||||||||||||
Total
|
$ | 249,572 | $ | 45,531 | $ | 78,382 | $ | 66,155 | $ | 59,504 | ||||||||||
|
(1)
|
Pension benefit payments, which amount to $86.5 million, are expected to be paid through the utilization of pension plan assets; retiree health and life insurance benefits, which amount to $8.6 million, are expected to be paid from operating cash flows.
|
|
(2)
|
Estimated future interest payments are based on rates that range from 0.25% to 1.56%, which take into consideration projected forward LIBOR rates and the related impact of the interest rate swap.
|
List of Exhibits:
|
|
10.1
|
Rogers Corporation 2009 Long-Term Equity Compensation Plan, as amended, filed as Exhibit 10.1 to the Company’s Registration Statement on Form S-8 (File No. 333-181199) filed May 7, 2012.*
|
10.2
|
General Release and Settlement Agreement with Peter G. Kaczmarek (with attachment), filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 13, 2012.*
|
10.3
|
General Release and Settlement Agreement with Michael D. Bessette [(with attachment)], filed herewith
|
23.1
|
Consent of National Economic Research Associates, Inc., filed herewith.
|
23.2
|
Consent of Marsh U.S.A., Inc., filed herewith.
|
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 Vice President, Finance 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 Vice President, Finance 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 March 31, 2012 formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Comprehensive Income (loss) for the three months ended March 31, 2012 and March 31, 2011, (ii) Condensed Consolidated Statements of Financial Position at March 31, 2012 and December 31, 2011, (iii) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2012 and March 31, 2011 and (iv) Notes to Condensed Consolidated Financial Statements.+
|
*
|
In accordance with Rule 12b-23 and Rule 12b-32 under the Securities Exchange Act of 1934, as amended, reference is made to the documents previously filed with the Securities and Exchange Commission, which documents are hereby incorporated by reference.
|
+
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
ROGERS CORPORATION
(Registrant)
|
/s/ Dennis M. Loughran
|
/s/ Ronald J. Pelletier
|
|
Dennis M. Loughran
Vice President, Finance and Chief Financial Officer
Principal Financial Officer
|
Ronald J. Pelletier
Corporate Controller and Principal Accounting Officer
|
Initialed by:
|
__________ (Employee)
|
______________ (H.R. Director)
|
/s/ Michael Bessette | ||
Initial all pages. Sign last |
Michael Bessette
|
|
page. Return all pages | ||
of both originals in the | ____________________ | |
envelope provided. | Date | |
/s/ Susan P. Flanigan | ||
By: _________________ | ||
Susan P. Flanigan | ||
Its U.S. Director of Human Resources | ||
____________________ | ||
Date |
|
·
|
If you do not sign the General Release and Settlement Agreement, your paid through date will be May 22, 2012.
|
|
·
|
If you do sign the General Release and Settlement Agreement within the timeframe specified in that document, and return two signed originals to the me, US Director of Human Resources in the envelope provided, your paid through date will be February 11, 2014.
|
|
·
|
Your present benefit coverage, including Medical, Dental, and the Employee Assistance Program (EAP) will continue through your paid through date. Payroll deductions for benefits will continue throughout your severance period for as long as you continue coverage in the benefit plan(s).
|
|
·
|
Your Basic Group Term Life Insurance coverage will end on March 9, 2013.
|
|
·
|
IRS regulations prohibit RESIP deductions and loan repayments from severance pay; therefore this benefit will end on April 24, 2012.
|
|
·
|
Your Short-Term and Long-Term Disability coverages end on March 12, 2012.
|
|
·
|
Your Health Care FSA will continue through April 24, 2012. If you choose to extend your FSA benefit through your severance period, you must contact Rogers to continue the deduction(s) by March 13, 2012.
|
|
·
|
Since you have Supplemental Term Life Insurance, your deductions will continue throughout your severance period for as long as you continue to participate in the plan. In the event you wish to convert your Supplemental Insurance or your current Standard Term Life Insurance to a whole life policy, you will need to contact your location HR representative to request a completed Standard Portability Application and Conversion form. You are then responsible for completing your portion of the Portability Application and Conversion form and returning them, with payment, to the address indicated in the booklet within 31 days of your last date paid. Your current Life coverage amounts are:
|
Option 1
|
Based on current government regulations, you may leave your funds in the Plan if you have a current balance of at least $5,000. This minimum balance amount may change in the future. The following provisions apply if you choose this option. You can continue to make transfers among investment fund options in the same manner as active participants. No future loans or hardship withdrawals are available. When you withdraw your funds, the value will be calculated as of the close of business on the day after Prudential receives your distribution request form.
|
Option 2
|
Withdraw or transfer your funds. You can choose a direct rollover of your funds. In a direct rollover the distribution is paid directly from the plan to an IRA or another employer plan that accepts rollovers. If you choose a direct rollover, you are not taxed until you take your funds out of the IRA or the employer plan. If you have the payment made to you, it is subject to 20% income tax withholding. Additionally, the premature distribution may be subject to a 10% penalty. You may be able to defer taxes on all or part of your distribution by making a tax deferred "rollover" to another qualified plan or IRA. Current law requires that this be done within 60 days of your receiving the RESIP distribution.
|
|
·
|
You may continue to participate in the plan through the last day of the current offering period, or
|
|
·
|
You may elect to discontinue participation at any time during the current offering period and receive a refund of deductions taken during this offering period. To do so, you must contact your location HR Representative.
|
$100 PPO Plan
|
$500 PPO Plan
|
Coinsurance Plan
|
||||||||||
Retiree/Spouse Only
|
$ | 66.00 | $ | 31.00 | $ | 16.00 | ||||||
Retiree/Spouse + One Dependent
|
$ | 132.00 | $ | 62.00 | $ | 32.00 | ||||||
Retiree/Spouse + Two+ Deps
|
$ | 212.00 | $ | 99.00 | $ | 51.00 |
Rogers’ Medicare Supplement Plan
|
|
Retiree age 65+
|
$35.00
|
Both Retiree and Spouse age 65+
|
$70.00
|
|
1.
|
Section 12(c): this section shall be deleted in its entirety and replaced with the following:
|
|
2.
|
Except as specifically modified or amended hereby, the Settlement Agreement shall remain in full force and effect.
|
By: /s/ Susan P. Flanigan
|
By: /s/ Michael Bessette
|
(Signature)
|
(Signature)
|
Print Name: Susan P. Flanigan
|
Print Name: Michael Bessette
|
Title: U.S. Director of Human Resources
|
|
Date:
|
Date:
|
MARSH USA, INC.
|
|
By: /s/ John H. Denton
|
|
Name: John H. Denton
|
|
Title: Senior Vice President
|
National Economic Research Associates, Inc.
|
|
By: /s/ Mary Elizabeth Stern
|
|
Name: Mary Elizabeth Stern
|
|
Title: Vice President
|
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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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.
|
/s/ Bruce D Hoechner
|
Bruce D. Hoechner
President and Chief Executive Officer
Principal Executive Officer
|
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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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.
|
/s/ Dennis M. Loughran
|
Dennis M. Loughran
Vice President, Finance and Chief Financial Officer
Principal Financial Officer
|
Bruce D. Hoechner
President and Chief Executive Officer
Principal Executive Officer
August 1, 2012
|
Dennis M. Loughran
Vice President, Finance and Chief Financial Officer
Principal Financial Officer
August 1, 2012
|
(_A_XPE\-^*-+AUN'4[07:V\%R&MKR$*L\9BN(\Y1'1PR,BE:\D\
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MVIMIY602;@$$?V$Y!4[O,'(QSR/QJ_9,^,:?M*']L']DOXPZ)X8\7ZEX7MO#
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end
Fair Value Measurements - Additional Information (Detail) (USD $)
|
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
Auction Rate Securities
|
Mar. 31, 2012
Auction Rate Securities
Securities Redeemed at Less Than Par Value
|
Mar. 31, 2012
Auction Rate Securities
Securities Redeemed at Par Value
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Net proceeds from liquidation of auction rate security | $ 25,400,000 | |||
Par value of auction rate securities redeemed | 29,500,000 | 24,900,000 | ||
Loss on liquidation of the securities | 3,200,000 | |||
Impairment on auction rate securities | 900,000 | |||
Derivative instruments, carrying value | $ 100,000 |
Summary of Activity Under Stock Option Plans (Detail) (USD $)
|
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||
Options Outstanding | |||||||||
Beginning Balance | 2,440,999 | 2,401,809 | 2,401,809 | ||||||
Options granted | 58,550 | 46,950 | 58,550 | ||||||
Options exercised | (112,531) | (116,491) | |||||||
Options cancelled | (28,999) | (32,799) | |||||||
Ending Balance | 2,299,469 | 2,440,999 | 2,299,469 | ||||||
Options exercisable at June 30, 2012 | 1,594,269 | 1,594,269 | |||||||
Options vested or expected to vest at June 30, 2012 | 2,273,222 | [1] | 2,273,222 | [1] | |||||
Weighted-Average Exercise Price Per Share | |||||||||
Beginning Balance | $ 37.59 | $ 37.54 | $ 37.54 | ||||||
Options granted | $ 47.89 | $ 41.27 | $ 47.89 | ||||||
Options exercised | $ 29.74 | $ 29.72 | |||||||
Options cancelled | $ 46.78 | $ 44.06 | |||||||
Ending Balance | $ 38.07 | $ 37.59 | $ 38.07 | ||||||
Options exercisable at June 30, 2012 | $ 41.39 | $ 41.39 | |||||||
Options vested or expected to vest at June 30, 2012 | $ 38.19 | [1] | $ 38.19 | [1] | |||||
Weighted-Average Remaining Contractual Life in Years | |||||||||
Options outstanding | 4 years 9 months 18 days | 4 years 10 months 24 days | |||||||
Options exercisable at June 30, 2012 | 3 years 8 months 12 days | ||||||||
Options vested or expected to vest at June 30, 2012 | 4 years 8 months 12 days | [1] | |||||||
Aggregate Intrinsic Value | |||||||||
Beginning Balance | $ 14,667,018 | ||||||||
Ending Balance | 14,513,131 | 14,667,018 | 14,513,131 | ||||||
Options exercisable at June 30, 2012 | 7,279,532 | 7,279,532 | |||||||
Options vested or expected to vest at June 30, 2012 | $ 14,247,752 | [1] | $ 14,247,752 | [1] | |||||
|
Comprehensive Income or Loss (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Comprehensive Income (Loss) [Line Items] | ||||
Net income (loss) | $ 6,455 | $ 12,128 | $ 4,646 | $ 21,563 |
Foreign currency translation adjustments | (10,857) | 6,298 | (4,886) | 21,262 |
Unrealized gain (loss) on marketable securities, net of tax | 420 | 1,168 | 501 | |
Unrealized gain (loss) on derivative instruments, net of tax | (43) | 212 | ||
Total comprehensive income (loss) | $ (4,445) | $ 18,846 | $ 1,140 | $ 43,326 |
Weighted Average Amortization Period by Intangible Asset Class (Detail)
|
Jun. 30, 2012
Year
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period | 7.3 |
Trademarks and patents
|
|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period | 9.1 |
Technology
|
|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period | 6.1 |
Covenant not-to-compete
|
|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period | 3.7 |
Customer relationships
|
|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period | 9.3 |
Performance Based Restricted Stock Awards (Detail) (Performance-Based Restricted Stock)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Performance-Based Restricted Stock
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested awards outstanding at beginning balance | 101,730 |
Awards granted | 22,120 |
Stock issued | (43,750) |
Awards forfeited | (6,642) |
Non-vested awards outstanding ending balance | 73,458 |
Discontinued Operations - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of income taxes | $ 0.1 | $ 1.3 | $ 2.9 | |
Net sales associated with the discontinued operations | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Preliminary Fair Market Value Assigned to Acquired Assets and Liabilities of Curamik Electronics Gmbh (Detail) (Curamik Electronics GmbH, USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Jan. 04, 2011
|
---|---|---|
Curamik Electronics GmbH
|
||
Assets: | ||
Cash | $ 11,256 | |
Accounts receivable | 11,876 | |
Other current assets | 1,386 | |
Inventory | 12,259 | |
Property, plant & equipment | 32,312 | |
Other non-current assets | 2,276 | |
Intangible assets | 52,354 | 52,400 |
Goodwill | 79,837 | 79,800 |
Total assets | 203,556 | |
Liabilities | ||
Accounts payable | 6,053 | |
Other current liabilities | 20,427 | |
Deferred tax liability | 9,329 | |
Other long-term liabilities | 16,666 | |
Total liabilities | 52,475 | |
Fair value of net assets acquired | $ 151,081 |
Segment Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segment Information | The
following table sets forth the information about our reportable
segments for the periods indicated:
|
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Income Taxes [Line Items] | ||||
Effective tax rate | 32.50% | 20.40% | 4.30% | 21.80% |
Statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Reversal of valuation allowance related to sale of auction rate securities portfolio | $ 1.5 | |||
Unrecognized tax benefits, interest and penalties accrued | 1.8 | 1.8 | ||
Unrecognized tax benefits | 18.6 | 18.6 | ||
Unrecognized tax benefits that would decrease the effective tax rate if recognized | $ 11.3 | $ 11.3 | ||
For the balance of 2012
|
||||
Income Taxes [Line Items] | ||||
Effective tax rate | 26.00% |
Deferred Stock Units (Detail) (Deferred Stock Units)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Deferred Stock Units
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested awards outstanding at beginning balance | 27,350 |
Awards granted | 17,600 |
Stock issued | (14,800) |
Awards forfeited | |
Non-vested awards outstanding ending balance | 30,150 |
Restructuring and Impairment Charges (Parenthetical) (Detail) (USD $)
|
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2012
Employee Severance
|
|
Restructuring Cost and Reserve [Line Items] | |||
Severance and related costs | $ 2,300,000 | $ 1,600,000 | |
Severance and related costs, favorable adjustment | $ 700,000 |
Summary of Severance Accrual Activity (Detail) (Employee Severance, USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
---|---|
Jun. 30, 2012
|
|
Employee Severance
|
|
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 4,545 |
Provisions | 1,273 |
Payments | (1,911) |
Ending Balance | $ 3,907 |
Changes in Carrying Amount of Goodwill by Segment (Detail) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Goodwill [Line Items] | |
Beginning Balance | $ 102,178 |
Foreign currency translation adjustment | (1,584) |
Ending Balance | 100,594 |
High Performance Foams
|
|
Goodwill [Line Items] | |
Beginning Balance | 22,597 |
Foreign currency translation adjustment | 195 |
Ending Balance | 22,792 |
Printed Circuit Materials
|
|
Goodwill [Line Items] | |
Beginning Balance | |
Foreign currency translation adjustment | |
Ending Balance | |
Curamik Electronics Solutions
|
|
Goodwill [Line Items] | |
Beginning Balance | 77,357 |
Foreign currency translation adjustment | (1,779) |
Ending Balance | 75,578 |
Power Electronics Solutions
|
|
Goodwill [Line Items] | |
Beginning Balance | |
Foreign currency translation adjustment | |
Ending Balance | |
Other
|
|
Goodwill [Line Items] | |
Beginning Balance | 2,224 |
Foreign currency translation adjustment | |
Ending Balance | $ 2,224 |
Fair Value Measurements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Assets Measured at Fair Value on a Recurring Basis, Categorized by the Level of Inputs Used in the Valuation |
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Reconciliation of Assets Measured at Fair Value on a Recurring Basis using Unobservable Inputs (Level 3) | The
reconciliation of our assets measured at fair value on a recurring
basis using unobservable inputs (Level 3) is as
follows:
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Rollforward of Credit Losses Recognized in Earnings | 2012. Below
is a roll forward of credit losses recognized in earnings for the
six months ended June 30, 2011.
|
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Numerator: | ||||
Income (loss) | $ 6,455 | $ 13,432 | $ 4,754 | $ 24,497 |
Denominator: | ||||
Denominator for basic earnings per share - Weighted-average shares | 16,309,053 | 15,944,483 | 16,270,955 | 15,918,978 |
Effect of dilutive stock options | 555,000 | 733,000 | 572,000 | 685,000 |
Denominator for diluted earnings per share - Adjusted weighted-average shares and assumed conversions | 16,864,166 | 16,678,377 | 16,842,768 | 16,603,543 |
Basic income (loss) per share: | $ 0.40 | $ 0.84 | $ 0.29 | $ 1.54 |
Diluted income (loss) per share: | $ 0.38 | $ 0.81 | $ 0.28 | $ 1.48 |
Hedging Transactions and Derivative Financial Instruments - Additional Information (Detail) (Bank Term Loan, USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
Contract
|
Jul. 31, 2012
Cash Flow Hedging [Member]
Subsequent Event
|
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Number of derivative contracts related to minimizing risk associated with potential rise in copper prices | 2 | |
Term loan debt | $ 95.0 | |
Interest rate swap, fixed interest rate for the period from July 2013 to June 2016 | 0.75% | |
Variable interest rate | 0.25% | |
Interest rate spread over variable rate | 2.25% | |
Interest rate swap derivative, percentage of debt hedged | 65.00% |
Restructuring and Impairment Charges (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||
Cost of Sales | ||||||||
Inventory impairment related to Bremen shut-down | $ 1,805 | |||||||
Total charges for cost of sales | 1,136 | 1,136 | ||||||
Restructuring and Impairment | ||||||||
Severance and related costs | 2,300 | |||||||
Total charges for restructuring and impairment | 830 | 8,214 | ||||||
High Performance Foams
|
||||||||
Cost of Sales | ||||||||
Accelerated depreciation expense related to Bremen shut-down | 585 | 585 | ||||||
Inventory impairment related to Bremen shut-down | 191 | 191 | ||||||
Restructuring and Impairment | ||||||||
Fixed asset impairment for Bisco and Poron asset disposal | 79 | |||||||
Severance and related costs | 670 | [1] | 3,088 | [1] | ||||
Power Electronics Solutions | Power Distribution Systems
|
||||||||
Cost of Sales | ||||||||
Accelerated depreciation expense related to Bremen shut-down | 360 | 360 | ||||||
Restructuring and Impairment | ||||||||
Impairment of investment related receivable | 264 | 264 | ||||||
Severance and related costs | (13) | [1] | 477 | [1] | ||||
Power Electronics Solutions | Curamik Electronics Solutions
|
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Restructuring and Impairment | ||||||||
Severance and related costs | 213 | [1] | 957 | [1] | ||||
Printed Circuit Materials
|
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Restructuring and Impairment | ||||||||
Severance and related costs | (276) | [1] | 3,046 | [1] | ||||
Other
|
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Restructuring and Impairment | ||||||||
Severance and related costs | $ (28) | [1] | $ 303 | [1] | ||||
|
Restructuring/ Impairment Charges (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Restructuring and Impairment Charges | The
following table summarizes the restructuring and impairment charges
related to these activities recorded in our operating results in
the second quarter and first six months of 2012.
(1)
For the three and six month periods ended June 30, 2012, this line
item includes an estimated change of 2.3 million recorded in the
first quarter of 2012, offest by a favorable adjustment of $0.7
million recorded in the second quarter of 2012. Total net charge of
$1.6 million, for the first six months of 2012, was related to the
early retirement program implemented in the first quarter of
2012.
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Summary of Severance Accrual Activity | A
summary of the activity in the severance accrual as of June 30,
2012 and changes during the three month period then ended is as
follows:
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Stock Based Compensation - Additional Information (Detail) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||
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Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
Employee Stock Purchase Plan
|
Jun. 30, 2011
Employee Stock Purchase Plan
|
Jun. 30, 2012
Employee Stock Purchase Plan
|
Jun. 30, 2011
Employee Stock Purchase Plan
|
Mar. 31, 2012
Stock Options
|
Jun. 30, 2012
Stock Options
|
Jun. 30, 2012
Stock Options
Maximum
|
Jun. 30, 2012
Performance-Based Restricted Stock
|
Jun. 30, 2011
Performance-Based Restricted Stock
|
Jun. 30, 2012
Performance-Based Restricted Stock
|
Jun. 30, 2011
Performance-Based Restricted Stock
|
Dec. 31, 2010
Performance-Based Restricted Stock
|
Dec. 31, 2011
Performance-Based Restricted Stock
|
Dec. 31, 2010
Performance-Based Restricted Stock
Maximum
|
Dec. 31, 2010
Performance-Based Restricted Stock
Minimum
|
Jun. 30, 2012
Time Based Restricted Stock
|
Jun. 30, 2011
Time Based Restricted Stock
|
Jun. 30, 2012
Time Based Restricted Stock
|
Jun. 30, 2011
Time Based Restricted Stock
|
Jun. 30, 2012
Deferred Stock Units
|
Jun. 30, 2011
Deferred Stock Units
|
Jun. 30, 2012
Deferred Stock Units
|
Jun. 30, 2011
Deferred Stock Units
|
Jun. 30, 2012
Stock Option
|
Jun. 30, 2011
Stock Option
|
Jun. 30, 2012
Stock Option
|
Jun. 30, 2011
Stock Option
|
|
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||||||||||||||||||||||||
Stock options, contractual term | 10 years | ||||||||||||||||||||||||||||||
Stock options, expected dividend yield | 0.00% | ||||||||||||||||||||||||||||||
Stock-based compensation, approximate forfeitures rate | 3.00% | ||||||||||||||||||||||||||||||
Compensation expense | $ 2,678,000 | $ 3,610,000 | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | $ 500,000 | $ 900,000 | $ 400,000 | $ 1,100,000 | $ 400,000 | $ 200,000 | $ 900,000 | $ 200,000 | $ 700,000 | $ 700,000 | $ 700,000 | $ 700,000 | $ 600,000 | $ 800,000 | $ 1,300,000 | $ 1,300,000 | |||||||||
Options exercised, total intrinsic value | 1,100,000 | ||||||||||||||||||||||||||||||
Total amount of cash received from exercise of options | $ 3,500,000 | ||||||||||||||||||||||||||||||
Restricted stock award program, measurement period | 3 years | ||||||||||||||||||||||||||||||
Restricted stock award program, awarded shares as a percentage of the original award amount | 200.00% | 0.00% | |||||||||||||||||||||||||||||
Restricted stock award program, payment of award as percentage of target | 97.40% | ||||||||||||||||||||||||||||||
Restricted stock award program, vesting period | 3 years | ||||||||||||||||||||||||||||||
Employee stock purchase plan, purchase price discount | 15.00% | ||||||||||||||||||||||||||||||
Employee stock purchase plan, number of offering | 2 | ||||||||||||||||||||||||||||||
Employee stock purchase plan, offering period | 6 months |
Fixed Charge Metrics (Detail)
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|
Debt Disclosure [Line Items] | |||
Covenant Limit | 1.25 | 1.25 | 2.50 |
Actual FCCR | 2.09 | 2.27 | 2.60 |
Information About Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 126,671 | $ 143,501 | $ 248,044 | $ 279,429 |
Segment operating income (loss) | 9,076 | 16,507 | 8,390 | 29,739 |
Equity income in unconsolidated joint ventures | 1,305 | 1,323 | 1,962 | 2,751 |
Other income (expense), net | 261 | 280 | 122 | 1,629 |
Net realized investment gain (loss) | 29 | (3,245) | 32 | |
Interest income (expense), net | (1,072) | (1,265) | (2,262) | (2,843) |
Income (loss) before income tax expense (benefit) | 9,570 | 16,874 | 4,967 | 31,308 |
Reportable Segment
|
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Segment Reporting Information [Line Items] | ||||
Net sales | 126,671 | 143,501 | 248,044 | 279,429 |
Segment operating income (loss) | 9,076 | 16,507 | 8,390 | 29,739 |
Equity income in unconsolidated joint ventures | 1,305 | 1,323 | 1,962 | 2,751 |
Other income (expense), net | 261 | 280 | 122 | 1,629 |
Net realized investment gain (loss) | 29 | (3,245) | 32 | |
Interest income (expense), net | (1,072) | (1,265) | (2,262) | (2,843) |
Income (loss) before income tax expense (benefit) | 9,570 | 16,874 | 4,967 | 31,308 |
Reportable Segment | High Performance Foams
|
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Segment Reporting Information [Line Items] | ||||
Net sales | 43,329 | 44,021 | 83,763 | 83,156 |
Segment operating income (loss) | 5,708 | 6,658 | 7,153 | 11,293 |
Reportable Segment | Printed Circuit Materials
|
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Segment Reporting Information [Line Items] | ||||
Net sales | 40,533 | 43,375 | 79,914 | 86,228 |
Segment operating income (loss) | 3,123 | 4,405 | 2,777 | 9,234 |
Reportable Segment | Power Electronics Solutions | Curamik Electronics Solutions
|
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Segment Reporting Information [Line Items] | ||||
Net sales | 23,908 | 34,613 | 48,200 | 67,510 |
Segment operating income (loss) | (1,205) | 2,855 | (2,978) | 3,157 |
Reportable Segment | Power Electronics Solutions | Power Distribution Systems
|
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Segment Reporting Information [Line Items] | ||||
Net sales | 11,573 | 13,978 | 22,089 | 26,413 |
Segment operating income (loss) | 135 | 1,644 | (515) | 3,909 |
Reportable Segment | Other
|
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Segment Reporting Information [Line Items] | ||||
Net sales | 7,328 | 7,514 | 14,078 | 16,122 |
Segment operating income (loss) | $ 1,315 | $ 945 | $ 1,953 | $ 2,146 |
Inventories (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Schedule of Inventory [Line Items] | ||
Raw materials | $ 30,517 | $ 30,655 |
Work-in-process | 15,982 | 14,919 |
Finished goods | 28,179 | 32,746 |
Inventories | $ 74,678 | $ 78,320 |
Hedging Transactions and Derivative Financial Instruments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Hedging Transactions and Derivative Financial Instruments |
Note 3 – Hedging Transactions and Derivative Financial
Instruments
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 special hedge
accounting treatment as defined under the applicable accounting
guidance. For derivative instruments that are designated
and qualify for hedge accounting treatment (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). This
gain or loss is reclassified into earnings in the same line item of
the condensed consolidated statements of comprehensive (loss)
associated with the forecasted transaction and in the same period
or periods during which the hedged transaction affects
earnings. The remaining gain or loss on the derivative
instrument in excess of the cumulative change in the present value
of the future cash flows of the hedged item (i.e., the ineffective
portion) if any, is recognized in the condensed consolidated
statements of comprehensive income (loss) during the current
period.
As
of the end of the second quarter of 2012, we have two contracts in
place to hedge our exposure related to the purchase of copper at
our German subsidiary, Curamik. These contracts are held
with financial institutions and minimize our risk associated with a
potential rise in copper prices. These two contracts
cover our 2012 monthly copper exposure and qualify for hedge
accounting treatment; therefore, any mark-to-market adjustments on
these contracts are recorded in accumulated other comprehensive
income (loss) in the equity section of our condensed consolidated
statements of financial position. At
June 30, 2012, the term loan debt represents $95.0 million of
our outstanding
facility. The interest rate swap results in the
variable portion
of the interest rate for this portion of the debt being fixed
at 0.075%
for the period from July 2013 to June 2016. (At June 30, 2012,
the rate
charged on this debt is 0.25% on the variable portion of the rate
plus a
spread of 2.25%.)
In
July 2012, we entered into an interest rate swap derivative
instrument to hedge the variable portion of the interest rate on
65% of the term loan debt, effective July 2013. This transaction
has been designated as a cash flow
hedge.
Concentration of Credit Risk
By
using derivative instruments, we are subject to credit and market
risk. If a counterparty fails to fulfill its performance
obligations under a derivative contract, our credit risk will equal
the fair value of the derivative instrument. Generally, when the
fair value of a derivative contract is positive, the counterparty
owes the Company, thus creating a receivable risk for the Company.
We minimize counterparty credit (or repayment) risk by entering
into derivative transactions with major financial institutions of
investment grade credit rating.
|
Joint Ventures - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
Entity
|
Jun. 30, 2011
|
Jun. 30, 2012
Entity
|
Jun. 30, 2011
|
|
Schedule of Equity Method Investments [Line Items] | ||||
Number of joint ventures that are 50% owned | 2 | 2 | ||
Equity income related to joint ventures | $ 1,305 | $ 1,323 | $ 1,962 | $ 2,751 |
Rogers INOAC Corporation
|
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Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest in joint venture | 50.00% | 50.00% | ||
Rogers INOAC Suzhou Corporation
|
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Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest in joint venture | 50.00% | 50.00% |