Materion (MTRN) 10-Q 27 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MATERION Corp
Entity Central Index Key	1,104,657
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	MTRN
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,937,862

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Income Statement [Abstract]
Net sales	$ 249,619	$ 244,354	$ 734,906	$ 811,233
Cost of sales	198,864	200,351	595,488	663,548
Gross margin	50,755	44,003	139,418	147,685
Selling, general, and administrative expense	34,177	29,051	97,101	101,578
Research and development expense	3,237	2,501	9,860	9,435
Other net	3,190	1,590	8,997	(532)
Operating profit	10,151	10,861	23,460	37,204
Interest expense—net	490	586	1,417	1,893
Income before income taxes	9,661	10,275	22,043	35,311
Income tax expense	1,616	2,883	3,081	9,868
Net income	$ 8,045	$ 7,392	$ 18,962	$ 25,443
Basic earnings per share:
Net income per share of common stock (in dollars per share)	$ 0.40	$ 0.37	$ 0.95	$ 1.26
Diluted earnings per share:
Net income per share of common stock (in dollars per share)	0.40	0.36	0.94	1.24
Cash dividends per share (in dollars per share)	$ 0.095	$ 0.090	$ 0.280	$ 0.265
Weighted-average number of shares of common stock outstanding:
Basic (in shares)	19,957	20,087	19,996	20,128
Diluted (in shares)	20,192	20,383	20,209	20,458

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 8,045	$ 7,392	$ 18,962	$ 25,443
Other comprehensive income:
Foreign currency translation adjustment	467	359	2,918	(895)
Derivative and hedging activity, net of tax	132	(1,177)	(489)	(1,778)
Pension and post-employment benefit adjustment, net of tax	673	901	2,923	2,705
Net change in other comprehensive income	1,272	83	5,352	32
Comprehensive income	$ 9,317	$ 7,475	$ 24,314	$ 25,475

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 15,806	$ 24,236
Accounts receivable	118,826	97,236
Inventories	210,213	211,820
Prepaid expenses	13,871	12,799
Total current assets	358,716	346,091
Long-term deferred income taxes	26,655	25,743
Property, plant, and equipment	862,474	833,834
Less allowances for depreciation, depletion, and amortization	(602,084)	(570,205)
Property, plant, and equipment—net	260,390	263,629
Intangible assets	10,706	13,389
Other assets	4,925	6,716
Goodwill	86,725	86,725
Total Assets	748,117	742,293
Current liabilities
Short-term debt	12,803	8,990
Accounts payable	32,941	31,888
Salaries and wages	23,637	27,494
Other liabilities and accrued items	24,275	22,035
Income taxes	3,851	2,373
Unearned revenue	1,152	3,695
Total current liabilities	98,659	96,475
Other long-term liabilities	17,893	18,435
Retirement and post-employment benefits	84,003	92,794
Unearned income	42,515	45,953
Long-term income taxes	1,179	1,293
Deferred income taxes	142	110
Long-term debt	3,776	4,276
Serial preferred stock	0	0
Common stock	212,168	208,967
Retained earnings	513,020	499,659
Common stock in treasury	(153,899)	(148,559)
Accumulated other comprehensive loss	(75,353)	(80,705)
Other equity transactions	4,014	3,595
Total shareholders' equity	499,950	482,957
Total Liabilities and Shareholders’ Equity	$ 748,117	$ 742,293

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015
Cash flows from operating activities:
Net income	$ 18,962	$ 25,443
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, and amortization	34,379	28,462
Amortization of deferred financing costs in interest expense	417	497
Stock-based compensation expense	2,880	4,518
(Gain) loss on sale of property, plant, and equipment	(601)	310
Deferred income tax (benefit) expense	(676)	3,841
Changes in assets and liabilities net of acquired assets and liabilities:
Decrease (increase) in accounts receivable	(19,781)	(1,583)
Decrease (increase) in inventory	3,294	9,928
Decrease (increase) in prepaid and other current assets	(956)	(1,965)
Increase (decrease) in accounts payable and accrued expenses	(2,207)	(19,299)
Increase (decrease) in unearned revenue	(2,546)	(773)
Increase (decrease) in interest and taxes payable	898	896
Increase (decrease) in long-term liabilities	(9,320)	(5,175)
Other-net	1,611	(256)
Net cash provided by operating activities	26,354	44,844
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment	(20,052)	(24,085)
Payments for mine development	(8,934)	(16,972)
Proceeds from sale of property, plant, and equipment	1,366	43
Net cash used in investing activities	(27,620)	(41,014)
Cash flows from financing activities:
Proceeds from issuance of short-term debt, net	3,777	14,152
Proceeds from issuance of long-term debt	10,000	53,990
Repayment of long-term debt	(10,517)	(46,275)
Principal payments under capital lease obligations	(549)	(582)
Cash dividends paid	(5,601)	(5,331)
Deferred financing costs	(1,000)	0
Repurchase of common stock	(3,798)	(7,129)
Net cash (used in) provided by financing activities	(7,688)	8,825
Effects of exchange rate changes	524	(979)
Net change in cash and cash equivalents	(8,430)	11,676
Cash and cash equivalents at beginning of period	24,236	13,150
Cash and cash equivalents at end of period	$ 15,806	$ 24,826

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies (Dollars in thousands) Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (the Company) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior years have been reclassified to conform to the 2016 consolidated financial statement presentation. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2015 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. New Pronouncements Adopted: In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires companies to present debt issuance costs associated with a debt liability as a deduction from the carrying amount of that debt liability on the balance sheet rather than being capitalized as an asset. The Company adopted this ASU effective January 1, 2016, and applied the new guidance on a retrospective basis, which resulted in a decrease to Intangible assets, Short-term debt, and Long-term debt, at December 31, 2015, of $347 , $8 , and $339 , respectively. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . Inventory within the scope of this update is required to be measured at the lower of its cost or net realizable value, with net realizable value being the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. We early adopted this ASU effective January 1, 2016. The adoption did not have a material effect on the consolidated financial statements. New Pronouncements Issued: In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which impacts several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement, and the tax effects of exercised or vested awards will be treated as discrete items in the reporting period in which they occur. An entity will also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the reporting period. Excess tax benefits will be classified, along with other income tax cash flows, as an operating activity. In regard to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The ASU, which is required to be applied on a modified retrospective basis, will be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which eliminates the off-balance-sheet accounting for leases. The new guidance will require lessees to report their operating leases as both an asset and liability on the balance sheet and disclose key information about leasing arrangements. The ASU, which is required to be applied on a modified retrospective basis, will be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Companies will need to use more judgment and estimates than under the guidance currently in effect, including estimating the amount of variable revenue to recognize over each identified performance obligation. Additional disclosures will be required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. This ASU is effective beginning in fiscal year 2018 with a provision for early adoption in 2017. The standard can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. No other recently issued or effective ASUs had, or are expected to have, a material effect on the Company's results of operations, financial condition, or liquidity.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Other (Thousands) Performance Alloys and Composites Advanced Materials Other (1) Corporate (2) Subtotal Total Third Quarter 2016 Net sales $ 103,699 $ 107,250 $ 38,670 $ — $ 38,670 $ 249,619 Intersegment sales (3) 47 21,505 — — — 21,552 Value-added sales 87,247 45,960 25,803 (2,009 ) 23,794 157,001 Operating profit (loss) 4,357 8,245 3,432 (5,883 ) (2,451 ) 10,151 Third Quarter 2015 Net sales $ 93,566 $ 113,635 $ 37,142 $ 11 $ 37,153 $ 244,354 Intersegment sales (3) 191 15,316 — — — 15,507 Value-added sales 79,596 44,520 25,671 (948 ) 24,723 148,839 Operating profit (loss) 4,547 6,950 2,273 (2,909 ) (636 ) 10,861 First Nine Months 2016 Net sales $ 292,024 $ 328,927 $ 113,955 $ — $ 113,955 $ 734,906 Intersegment sales (3) 226 54,110 — — — 54,336 Value-added sales 248,799 135,019 75,548 (4,573 ) 70,975 454,793 Operating profit (loss) 6,103 20,748 9,803 (13,194 ) (3,391 ) 23,460 First Nine Months 2015 Net sales $ 304,507 $ 394,922 $ 112,024 $ (220 ) $ 111,804 $ 811,233 Intersegment sales (3) 733 48,830 — — — 49,563 Value-added sales 256,697 142,952 75,438 (1,258 ) 74,180 473,829 Operating profit (loss) 20,677 23,289 4,512 (11,274 ) (6,762 ) 37,204 (1) Other represents the Precision Coatings group, which is a business included in the Other reportable segment. (2) Costs associated with the Company's unallocated corporate functions have been shown separately to better illustrate the financial information for the businesses within the Other reportable segment. (3) Intersegment sales are eliminated in consolidation.

Other-net

Other-net	9 Months Ended
	Sep. 30, 2016
Other Income and Expenses [Abstract]
Other-net	Other-net Other-net (income) expense for the third quarter and first nine months of 2016 and 2015 is summarized as follows: Third Quarter Ended Nine Months Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands) 2016 2015 2016 2015 Foreign currency exchange/translation loss (gain) $ 336 $ (1,256 ) $ 977 $ (4,569 ) Amortization of intangible assets 1,148 1,256 3,444 3,769 Metal consignment fees 1,665 1,686 4,851 5,554 Net loss (gain) on disposal of fixed assets 94 2 (601 ) 310 Recovery from insurance — — — (3,800 ) Legal recoveries — (500 ) — (1,825 ) Other items (53 ) 402 326 29 Total $ 3,190 $ 1,590 $ 8,997 $ (532 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded income tax expense of $1.6 million in the third quarter of 2016 , an effective tax rate of 16.7% against income before income taxes, and income tax expense of $2.9 million in the third quarter of 2015 , with an effective tax rate of 28.1% against income before income taxes. In the first nine months of 2016 , income tax expense of $3.1 million was calculated using an effective tax rate of 14.0% , while income tax expense of $9.9 million in the first nine months of 2015 was calculated using an effective tax rate of 27.9% . The Company recorded discrete items in the first nine months of 2016, resulting in a net tax benefit of $1.0 million , primarily due to international tax planning initiatives. The difference between the statutory and effective rates in the third quarter and first nine months of both years was primarily due to these discrete items, the impact of percentage depletion, the foreign rate differential, and other items. The research and development credit also had a favorable effect on the Company's 2016 effective tax rate.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth the computation of basic and diluted EPS: Third Quarter Ended Nine Months Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands, except per share amounts) 2016 2015 2016 2015 Numerator for basic and diluted EPS: Net income $ 8,045 $ 7,392 $ 18,962 $ 25,443 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 19,957 20,087 19,996 20,128 Effect of dilutive securities: Stock appreciation rights 70 123 66 174 Restricted stock units 82 113 86 103 Performance-based restricted stock units 83 60 61 53 Diluted potential common shares 235 296 213 330 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,192 20,383 20,209 20,458 Basic EPS $ 0.40 $ 0.37 $ 0.95 $ 1.26 Diluted EPS $ 0.40 $ 0.36 $ 0.94 $ 1.24 Stock appreciation rights (SARs) totaling 982,588 and 487,248 for the quarters ended September 30, 2016 and October 2, 2015 , respectively, and 993,418 and 379,676 for the nine months ended September 30, 2016 and October 2, 2015 , respectively, were excluded from the dilution calculation as their effect would have been anti-dilutive.

Depreciation and Amortization

Depreciation and Amortization	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation and Amortization	The Company received an aggregate of $63.5 million from the U.S. Department of Defense (DoD) in previous periods for reimbursement of the DoD's share of the cost of the equipment in property, plant, and equipment, and the reimbursements are reported as unearned income, a liability on the Consolidated Balance Sheets. The equipment was placed in service during 2012, and its full cost is being depreciated in accordance with Company policy. The unearned income liability is being reduced ratably with the depreciation expense recorded over the life of the equipment. In the first nine months of 2016 and 2015, the depreciation expense reimbursed for this equipment was $3.4 million and $4.7 million , respectively. Accordingly, in the first nine months of 2016 and 2015, unearned income was reduced by $3.4 million and $4.7 million , respectively, with the offset recorded as a credit to cost of sales. Depreciation, depletion, and amortization expense on the Consolidated Statements of Cash Flows is shown net of the reduction in unearned income.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories on the Consolidated Balance Sheets are summarized as follows: Sept. 30, Dec. 31, (Thousands) 2016 2015 Raw materials and supplies $ 35,792 $ 37,463 Work in process 176,763 180,458 Finished goods 41,896 38,135 Subtotal $ 254,451 $ 256,056 Less: LIFO reserve balance 44,238 44,236 Inventories $ 210,213 $ 211,820 The liquidation of last in, first out (LIFO) inventory layers did not impact cost of sales in the third quarter of 2016 and reduced cost of sales by $0.5 million in the third quarter of 2015. In the first nine months of 2016 and 2015, cost of sales was reduced by $3.2 million and $2.4 million , respectively.

Pensions and Other Post-employm

Pensions and Other Post-employment Benefits	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Pensions and Other Post-employment Benefits	Pensions and Other Post-employment Benefits The following is a summary of the net periodic benefit cost for the third quarter and first nine months of 2016 and 2015 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan. Pension Benefits Other Benefits Third Quarter Ended Third Quarter Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands) 2016 2015 2016 2015 Components of net periodic benefit cost Service cost $ 1,946 $ 2,231 $ 26 $ 29 Interest cost 2,595 2,500 140 139 Expected return on plan assets (3,488 ) (3,354 ) — — Amortization of prior service benefit (115 ) (113 ) (374 ) (374 ) Amortization of net loss 1,431 1,820 — — Net periodic benefit cost (benefit) $ 2,369 $ 3,084 $ (208 ) $ (206 ) Pension Benefits Other Benefits Nine Months Ended Nine Months Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands) 2016 2015 2016 2015 Components of net periodic benefit cost Service cost $ 5,838 $ 6,692 $ 77 $ 87 Interest cost 7,785 7,500 422 415 Expected return on plan assets (10,464 ) (10,062 ) — — Amortization of prior service benefit (345 ) (337 ) (1,122 ) (1,122 ) Amortization of net loss 4,292 5,459 — — Net periodic benefit cost (benefit) $ 7,106 $ 9,252 $ (623 ) $ (620 ) The Company made contributions to the domestic defined benefit pension plan of $12.0 million and $8.0 million in the first nine months of 2016 and 2015 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the third quarter and first nine months of 2016 and 2015 are as follows: (Thousands) Gains and Losses on Cash Flow Hedges Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at July 1, 2016 $ 958 $ (74,546 ) $ (3,037 ) $ (76,625 ) Other comprehensive income (loss) before reclassifications (126 ) — 467 341 Amounts reclassified from accumulated other comprehensive income 336 1,015 — 1,351 Net current period other comprehensive income before tax 210 1,015 467 1,692 Deferred taxes on current period activity 78 342 — 420 Net current period other comprehensive income after tax 132 673 467 1,272 Balance at September 30, 2016 $ 1,090 $ (73,873 ) $ (2,570 ) $ (75,353 ) Balance at July 3, 2015 $ 2,977 $ (79,858 ) $ (5,407 ) $ (82,288 ) Other comprehensive income (loss) before reclassifications (447 ) — 359 (88 ) Amounts reclassified from accumulated other comprehensive income (1,423 ) 1,396 — (27 ) Net current period other comprehensive income (loss) before tax (1,870 ) 1,396 359 (115 ) Deferred taxes on current period activity (693 ) 495 — (198 ) Net current period other comprehensive income (loss) after tax (1,177 ) 901 359 83 Balance at October 2, 2015 $ 1,800 $ (78,957 ) $ (5,048 ) $ (82,205 ) Balance at December 31, 2015 $ 1,579 $ (76,796 ) $ (5,488 ) $ (80,705 ) Other comprehensive income (loss) before reclassifications (1,571 ) — 2,918 1,347 Amounts reclassified from accumulated other comprehensive income 793 3,045 — 3,838 Net current period other comprehensive income (loss) before tax (778 ) 3,045 2,918 5,185 Deferred taxes on current period activity (289 ) 122 — (167 ) Net current period other comprehensive income (loss) after tax (489 ) 2,923 2,918 5,352 Balance at September 30, 2016 $ 1,090 $ (73,873 ) $ (2,570 ) $ (75,353 ) Balance at December 31, 2014 $ 3,578 $ (81,662 ) $ (4,153 ) $ (82,237 ) Other comprehensive income (loss) before reclassifications 2,198 14 (895 ) 1,317 Amounts reclassified from accumulated other comprehensive income (5,021 ) 4,186 — (835 ) Net current period other comprehensive income (loss) before tax (2,823 ) 4,200 (895 ) 482 Deferred taxes on current period activity (1,045 ) 1,495 — 450 Net current period other comprehensive income (loss) after tax (1,778 ) 2,705 (895 ) 32 Balance at October 2, 2015 $ 1,800 $ (78,957 ) $ (5,048 ) $ (82,205 ) Reclassifications from accumulated other comprehensive income of gains and losses on foreign currency cash flow hedges are recorded in Other-net in the Consolidated Statements of Income. Refer to Note L for additional details on cash flow hedges. Reclassifications from accumulated other comprehensive income for pension and post-employment benefits are included in the computation of the net periodic pension and post-employment benefit expense. Refer to Note H for additional details on pension and post-employment expenses.

Stock-based Compensation Expens

Stock-based Compensation Expense	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation Expense	Stock-based Compensation Expense Stock-based compensation expense, which includes awards settled in shares and in cash, was $2.1 million and $4.4 million in the third quarter and first nine months of 2016 , respectively, compared to $0.5 million and $5.9 million in the same periods of 2015 . The Company granted 221,065 SARs to certain employees during the first nine months of 2016 . The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the nine months ended September 30, 2016 were $25.19 and $8.07 , respectively. The Company estimated the fair value of the SARs using the following assumptions in the Black-Scholes model: Risk-free interest rate 1.25 % Dividend yield 1.4 % Volatility 38.0 % Expected term (in years) 5.7 The Company granted 69,212 stock-settled restricted stock units (RSUs) and 28,180 cash-settled RSUs to certain employees and non-employee directors during the first nine months of 2016 . The Company measures the fair value of stock-settled RSUs based on the closing market price of a share of Materion common stock on the date of the grant. The weighted-average fair value per share was $25.96 for stock-settled RSUs granted during the nine months ended September 30, 2016 . Cash-settled RSUs are accounted for as liability-based compensation awards and adjusted based on the closing price of Materion’s common stock over the vesting period of three years . The Company granted stock-settled and cash-settled performance-based restricted stock units (PRSUs) to certain employees in the first nine months of 2016 . The weighted-average fair value of the stock-settled PRSUs was $22.77 per share and will be expensed over the vesting period of three years . The liability for cash-settled PRSUs is re-measured at fair value each reporting period, and the expense is recorded accordingly. The final payout to the employees for all PRSUs will be based upon the Company’s return on invested capital and the total return to shareholders over the vesting period relative to a peer group’s performance over the same period. At September 30, 2016 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $5.9 million , and is expected to be recognized over the remaining vesting period of the respective grants.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company measures and records financial instruments at fair value. A fair value hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 — Quoted market prices in active markets for identical assets and liabilities; Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 — Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 : (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2016 2015 2016 2015 2016 2015 2016 2015 Financial Assets Deferred compensation investments $ 1,699 $ 2,524 $ 1,699 $ 2,503 $ — $ 21 $ — $ — Foreign currency forward contracts 64 462 — — 64 462 — — Total $ 1,763 $ 2,986 $ 1,699 $ 2,503 $ 64 $ 483 $ — $ — Financial Liabilities Deferred compensation liability $ 1,699 $ 2,524 $ 1,699 $ 2,503 $ — $ 21 $ — $ — Foreign currency forward contracts 560 180 — — 560 180 — — Total $ 2,259 $ 2,704 $ 1,699 $ 2,503 $ 560 $ 201 $ — $ — The Company uses a market approach to value the assets and liabilities for financial instruments in the table above. Outstanding contracts are valued through models that utilize market observable inputs, including both spot and forward prices, for the same underlying currencies and metals. The carrying values of the other working capital items and debt in the Consolidated Balance Sheet approximate fair values as of September 30, 2016 and December 31, 2015.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activity	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activity	Derivative Instruments and Hedging Activity The Company uses derivative contracts to hedge portions of its foreign currency exposures and may also use derivatives to hedge a portion of its precious metal exposures. The objectives and strategies for using derivatives in these areas are as follows: Foreign Currency. The Company sells a portion of its products to overseas customers in their local currencies, primarily the euro and yen. The Company secures foreign currency derivatives, mainly forward contracts and options, to hedge these anticipated sales transactions. The purpose of the hedge program is to protect against the reduction in the dollar value of foreign currency sales from adverse exchange rate movements. Should the dollar strengthen significantly, the decrease in the translated value of the foreign currency sales should be partially offset by gains on the hedge contracts. Depending upon the methods used, hedge contracts may limit the benefits from a weakening U.S. dollar. The use of forward contracts locks in a firm rate and eliminates any downside risk from an adverse rate movement as well as any benefit from a favorable rate movement. The Company may from time to time choose to hedge with options or a tandem of options, known as a collar. These hedging techniques can limit or eliminate the downside risk but can allow for some or all of the benefit from a favorable rate movement to be realized. Unlike a forward contract, a premium is paid for an option; collars, which are a combination of a put and call option, may have a net premium but can be structured to be cash neutral. The Company will primarily hedge with forward contracts due to the relationship between the cash outlay and the level of risk. The use of foreign currency derivative contracts is governed by policies approved by the Audit Committee of the Board of Directors. A team consisting of senior financial managers reviews the estimated exposure levels, as defined by budgets, forecasts, and other internal data, and determines the timing, amounts, and instruments to use to hedge that exposure within the confines of the policy. Management analyzes the effective hedged rates and the actual and projected gains and losses on the hedging transactions against the program objectives, targeted rates, and levels of risk assumed. Hedge contracts are typically layered in at different times for a specified exposure period in order to minimize the impact of rate movements. Precious Metals. The Company maintains the majority of its precious metal production requirements on consignment in order to reduce its working capital investment and the exposure to metal price movements. When a precious metal product is fabricated and ready for shipment to the customer, the metal is purchased out of consignment at the current market price. The price paid by the Company forms the basis for the price charged to the customer. This methodology allows for changes in either direction in the market prices of the precious metals used by the Company to be passed through to the customer, and reduces the impact changes in prices could have on the Company's margins and operating profit. The consigned metal is owned by financial institutions that charge the Company a financing fee based upon the current value of the metal on hand. In certain instances, a customer may want to establish the price for the precious metal at the time the sales order is placed rather than at the time of shipment. Setting the sales price at a different date than when the material would be purchased potentially creates an exposure to movements in the market price of the metal. Therefore, in these limited situations, the Company may elect to enter into a forward contract to purchase precious metal. The forward contract allows the Company to purchase metal at a fixed price on a specific future date. The price in the forward contract serves as the basis for the price to be charged to the customer. By doing so, the selling price and purchase price are matched, and the Company's price exposure is reduced. The Company refines precious metal-containing materials for its customers and typically will purchase the refined metal from the customer at current market prices. In limited circumstances, the customer may want to fix the price to be paid at the time of the order as opposed to when the material is refined. The customer may also want to fix the price for a set period of time. The Company may then elect to enter into a hedge contract, either a forward contract or a swap, to fix the price for the estimated quantity of metal to be purchased, thereby reducing the exposure to adverse movements in the price of the metal. The Company may from time to time elect to purchase precious metal and hold in inventory rather than on consignment due to potential credit line limitations or other factors. These purchases are typically held for a short duration. A forward contract will be secured at the time of the purchase to fix the price to be used when the metal is transferred back to the consignment line, thereby limiting any price exposure during the time when the metal was owned. The Company will only enter into a derivative contract if there is an underlying identified exposure. Contracts are typically held until maturity. The Company does not engage in derivative trading activities and does not use derivatives for speculative purposes. The Company only uses currency hedge contracts that are denominated in the same currency as the underlying exposure and precious metal hedge contracts denominated in the same metal as the underlying exposure. All derivatives are recorded on the balance sheet at fair value. If the derivative is designated and effective as a cash flow hedge, changes in the fair value of the derivative are recognized in other comprehensive income (OCI) until the hedged item is recognized in earnings. The ineffective portion of a derivative’s fair value, if any, is recognized in earnings immediately. If a derivative is not a hedge, changes in the fair value are adjusted through income. The fair values of the outstanding derivatives are recorded on the balance sheet as assets (if the derivatives are in a gain position) or liabilities (if the derivatives are in a loss position). The fair values will also be classified as short-term or long-term depending upon their maturity dates. The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives and balance sheet classification as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Prepaid expenses Foreign currency forward contracts - yen $ — $ — $ 5,138 $ 60 Foreign currency forward contracts - euro 8,549 64 18,181 402 8,549 64 23,319 462 Other liabilities and accrued items Foreign currency forward contracts - yen 4,320 (461 ) 5,102 (94 ) Foreign currency forward contracts - euro 4,443 (99 ) 10,514 (86 ) 8,763 (560 ) 15,616 (180 ) Total $ 17,312 $ (496 ) $ 38,935 $ 282 All of these contracts were designated and effective as cash flow hedges. No ineffectiveness expense was recorded in the third quarter or first nine months of 2016 or 2015. Changes in the fair value of outstanding cash flow hedges recorded in OCI for the first nine months of 2016 and 2015 totaled a decrease of $1.6 million and an increase of $2.2 million , respectively. The Company expects to relieve substantially the entire balance in OCI as of September 30, 2016 to the Consolidated Statements of Income during the twelve-month period beginning October 1, 2016. Refer to Note I for additional OCI details.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
Loss Contingency [Abstract]
Contingencies	Contingencies Materion Brush Inc., one of the Company's wholly-owned subsidiaries, is a defendant from time to time in proceedings where the plaintiffs allege they have contracted chronic beryllium disease (CBD) or related ailments as a result of exposure to beryllium. The Company will record a reserve for CBD or other litigation when a loss from either settlement or verdict is probable and estimable. Claims filed by third-party plaintiffs may be covered by insurance subject to deductibles which vary based on when the exposure occurred. Reserves are recorded for asserted claims only, and defense costs are expensed as incurred. One CBD case that was outstanding at the end of the second quarter of 2016 was settled during the third quarter of 2016. The settlement of this case has been fully reflected in the Company's financial statements and is not material to the Company's consolidated financial statements. One CBD case that had been on appeal was remanded to the trial court and was outstanding as of the end of the third quarter of 2016 . The Company does not expect the resolution of this matter to have a material impact on the consolidated financial statements. The Company has an active environmental compliance program and records reserves for the probable cost of identified environmental remediation projects. The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies. The undiscounted reserve balance was $6.0 million at September 30, 2016 and $5.7 million at December 31, 2015 . Environmental projects tend to be long term, and the final actual remediation costs may differ from the amounts currently recorded.

Accounting Policies Basis of Ac

Accounting Policies Basis of Accounting (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (the Company) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior years have been reclassified to conform to the 2016 consolidated financial statement presentation. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2015 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year.

Accounting Policies New Pronoun

Accounting Policies New Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Pronouncements	New Pronouncements Adopted: In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires companies to present debt issuance costs associated with a debt liability as a deduction from the carrying amount of that debt liability on the balance sheet rather than being capitalized as an asset. The Company adopted this ASU effective January 1, 2016, and applied the new guidance on a retrospective basis, which resulted in a decrease to Intangible assets, Short-term debt, and Long-term debt, at December 31, 2015, of $347 , $8 , and $339 , respectively. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . Inventory within the scope of this update is required to be measured at the lower of its cost or net realizable value, with net realizable value being the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. We early adopted this ASU effective January 1, 2016. The adoption did not have a material effect on the consolidated financial statements. New Pronouncements Issued: In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which impacts several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement, and the tax effects of exercised or vested awards will be treated as discrete items in the reporting period in which they occur. An entity will also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the reporting period. Excess tax benefits will be classified, along with other income tax cash flows, as an operating activity. In regard to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The ASU, which is required to be applied on a modified retrospective basis, will be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which eliminates the off-balance-sheet accounting for leases. The new guidance will require lessees to report their operating leases as both an asset and liability on the balance sheet and disclose key information about leasing arrangements. The ASU, which is required to be applied on a modified retrospective basis, will be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Companies will need to use more judgment and estimates than under the guidance currently in effect, including estimating the amount of variable revenue to recognize over each identified performance obligation. Additional disclosures will be required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. This ASU is effective beginning in fiscal year 2018 with a provision for early adoption in 2017. The standard can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. No other recently issued or effective ASUs had, or are expected to have, a material effect on the Company's results of operations, financial condition, or liquidity.

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	Other (Thousands) Performance Alloys and Composites Advanced Materials Other (1) Corporate (2) Subtotal Total Third Quarter 2016 Net sales $ 103,699 $ 107,250 $ 38,670 $ — $ 38,670 $ 249,619 Intersegment sales (3) 47 21,505 — — — 21,552 Value-added sales 87,247 45,960 25,803 (2,009 ) 23,794 157,001 Operating profit (loss) 4,357 8,245 3,432 (5,883 ) (2,451 ) 10,151 Third Quarter 2015 Net sales $ 93,566 $ 113,635 $ 37,142 $ 11 $ 37,153 $ 244,354 Intersegment sales (3) 191 15,316 — — — 15,507 Value-added sales 79,596 44,520 25,671 (948 ) 24,723 148,839 Operating profit (loss) 4,547 6,950 2,273 (2,909 ) (636 ) 10,861 First Nine Months 2016 Net sales $ 292,024 $ 328,927 $ 113,955 $ — $ 113,955 $ 734,906 Intersegment sales (3) 226 54,110 — — — 54,336 Value-added sales 248,799 135,019 75,548 (4,573 ) 70,975 454,793 Operating profit (loss) 6,103 20,748 9,803 (13,194 ) (3,391 ) 23,460 First Nine Months 2015 Net sales $ 304,507 $ 394,922 $ 112,024 $ (220 ) $ 111,804 $ 811,233 Intersegment sales (3) 733 48,830 — — — 49,563 Value-added sales 256,697 142,952 75,438 (1,258 ) 74,180 473,829 Operating profit (loss) 20,677 23,289 4,512 (11,274 ) (6,762 ) 37,204

Other-net (Tables)

Other-net (Tables)	9 Months Ended
	Sep. 30, 2016
Other Income and Expenses [Abstract]
Summary of Other-Net Expense	Other-net (income) expense for the third quarter and first nine months of 2016 and 2015 is summarized as follows: Third Quarter Ended Nine Months Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands) 2016 2015 2016 2015 Foreign currency exchange/translation loss (gain) $ 336 $ (1,256 ) $ 977 $ (4,569 ) Amortization of intangible assets 1,148 1,256 3,444 3,769 Metal consignment fees 1,665 1,686 4,851 5,554 Net loss (gain) on disposal of fixed assets 94 2 (601 ) 310 Recovery from insurance — — — (3,800 ) Legal recoveries — (500 ) — (1,825 ) Other items (53 ) 402 326 29 Total $ 3,190 $ 1,590 $ 8,997 $ (532 )

Earnings Per Share Earnings Per

Earnings Per Share Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted EPS: Third Quarter Ended Nine Months Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands, except per share amounts) 2016 2015 2016 2015 Numerator for basic and diluted EPS: Net income $ 8,045 $ 7,392 $ 18,962 $ 25,443 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 19,957 20,087 19,996 20,128 Effect of dilutive securities: Stock appreciation rights 70 123 66 174 Restricted stock units 82 113 86 103 Performance-based restricted stock units 83 60 61 53 Diluted potential common shares 235 296 213 330 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,192 20,383 20,209 20,458 Basic EPS $ 0.40 $ 0.37 $ 0.95 $ 1.26 Diluted EPS $ 0.40 $ 0.36 $ 0.94 $ 1.24

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories on the Consolidated Balance Sheets are summarized as follows: Sept. 30, Dec. 31, (Thousands) 2016 2015 Raw materials and supplies $ 35,792 $ 37,463 Work in process 176,763 180,458 Finished goods 41,896 38,135 Subtotal $ 254,451 $ 256,056 Less: LIFO reserve balance 44,238 44,236 Inventories $ 210,213 $ 211,820

Pensions and Other Post-emplo25

Pensions and Other Post-employment Benefits (Tables)	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	The following is a summary of the net periodic benefit cost for the third quarter and first nine months of 2016 and 2015 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan. Pension Benefits Other Benefits Third Quarter Ended Third Quarter Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands) 2016 2015 2016 2015 Components of net periodic benefit cost Service cost $ 1,946 $ 2,231 $ 26 $ 29 Interest cost 2,595 2,500 140 139 Expected return on plan assets (3,488 ) (3,354 ) — — Amortization of prior service benefit (115 ) (113 ) (374 ) (374 ) Amortization of net loss 1,431 1,820 — — Net periodic benefit cost (benefit) $ 2,369 $ 3,084 $ (208 ) $ (206 ) Pension Benefits Other Benefits Nine Months Ended Nine Months Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2, (Thousands) 2016 2015 2016 2015 Components of net periodic benefit cost Service cost $ 5,838 $ 6,692 $ 77 $ 87 Interest cost 7,785 7,500 422 415 Expected return on plan assets (10,464 ) (10,062 ) — — Amortization of prior service benefit (345 ) (337 ) (1,122 ) (1,122 ) Amortization of net loss 4,292 5,459 — — Net periodic benefit cost (benefit) $ 7,106 $ 9,252 $ (623 ) $ (620 )

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the third quarter and first nine months of 2016 and 2015 are as follows: (Thousands) Gains and Losses on Cash Flow Hedges Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at July 1, 2016 $ 958 $ (74,546 ) $ (3,037 ) $ (76,625 ) Other comprehensive income (loss) before reclassifications (126 ) — 467 341 Amounts reclassified from accumulated other comprehensive income 336 1,015 — 1,351 Net current period other comprehensive income before tax 210 1,015 467 1,692 Deferred taxes on current period activity 78 342 — 420 Net current period other comprehensive income after tax 132 673 467 1,272 Balance at September 30, 2016 $ 1,090 $ (73,873 ) $ (2,570 ) $ (75,353 ) Balance at July 3, 2015 $ 2,977 $ (79,858 ) $ (5,407 ) $ (82,288 ) Other comprehensive income (loss) before reclassifications (447 ) — 359 (88 ) Amounts reclassified from accumulated other comprehensive income (1,423 ) 1,396 — (27 ) Net current period other comprehensive income (loss) before tax (1,870 ) 1,396 359 (115 ) Deferred taxes on current period activity (693 ) 495 — (198 ) Net current period other comprehensive income (loss) after tax (1,177 ) 901 359 83 Balance at October 2, 2015 $ 1,800 $ (78,957 ) $ (5,048 ) $ (82,205 ) Balance at December 31, 2015 $ 1,579 $ (76,796 ) $ (5,488 ) $ (80,705 ) Other comprehensive income (loss) before reclassifications (1,571 ) — 2,918 1,347 Amounts reclassified from accumulated other comprehensive income 793 3,045 — 3,838 Net current period other comprehensive income (loss) before tax (778 ) 3,045 2,918 5,185 Deferred taxes on current period activity (289 ) 122 — (167 ) Net current period other comprehensive income (loss) after tax (489 ) 2,923 2,918 5,352 Balance at September 30, 2016 $ 1,090 $ (73,873 ) $ (2,570 ) $ (75,353 ) Balance at December 31, 2014 $ 3,578 $ (81,662 ) $ (4,153 ) $ (82,237 ) Other comprehensive income (loss) before reclassifications 2,198 14 (895 ) 1,317 Amounts reclassified from accumulated other comprehensive income (5,021 ) 4,186 — (835 ) Net current period other comprehensive income (loss) before tax (2,823 ) 4,200 (895 ) 482 Deferred taxes on current period activity (1,045 ) 1,495 — 450 Net current period other comprehensive income (loss) after tax (1,778 ) 2,705 (895 ) 32 Balance at October 2, 2015 $ 1,800 $ (78,957 ) $ (5,048 ) $ (82,205 )

Stock-based Compensation Expe27

Stock-based Compensation Expense Stock-based Compensation Expense Tables (Tables)	9 Months Ended
	Sep. 30, 2016
Disclsure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Share Based Payment Award SARs Valuation Assumptions [Table Text Block]	The Company estimated the fair value of the SARs using the following assumptions in the Black-Scholes model: Risk-free interest rate 1.25 % Dividend yield 1.4 % Volatility 38.0 % Expected term (in years) 5.7

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Summary of Fair Value Information and Derivative Financial Instruments	The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 : (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2016 2015 2016 2015 2016 2015 2016 2015 Financial Assets Deferred compensation investments $ 1,699 $ 2,524 $ 1,699 $ 2,503 $ — $ 21 $ — $ — Foreign currency forward contracts 64 462 — — 64 462 — — Total $ 1,763 $ 2,986 $ 1,699 $ 2,503 $ 64 $ 483 $ — $ — Financial Liabilities Deferred compensation liability $ 1,699 $ 2,524 $ 1,699 $ 2,503 $ — $ 21 $ — $ — Foreign currency forward contracts 560 180 — — 560 180 — — Total $ 2,259 $ 2,704 $ 1,699 $ 2,503 $ 560 $ 201 $ — $ —

Derivative Instruments and He29

Derivative Instruments and Hedging Activity Derivative Instruments and Hedging Activity Tables (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives and balance sheet classification as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Prepaid expenses Foreign currency forward contracts - yen $ — $ — $ 5,138 $ 60 Foreign currency forward contracts - euro 8,549 64 18,181 402 8,549 64 23,319 462 Other liabilities and accrued items Foreign currency forward contracts - yen 4,320 (461 ) 5,102 (94 ) Foreign currency forward contracts - euro 4,443 (99 ) 10,514 (86 ) 8,763 (560 ) 15,616 (180 ) Total $ 17,312 $ (496 ) $ 38,935 $ 282

Accounting Policies New Prounce

Accounting Policies New Prouncements Adopted (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Intangible assets	$ 10,706	$ 13,389
Short-term debt	$ 12,803	8,990
Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Intangible assets		347
Short-term debt		8
Long-term debt		$ 339

Segment Reporting (Detail)

Segment Reporting (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Segment Reporting Information [Line Items]
Net sales	$ 249,619	$ 244,354	$ 734,906	$ 811,233
Intersegment sales	21,552	15,507	54,336	49,563
Value-added sales	157,001	148,839	454,793	473,829
Operating profit (loss)	10,151	10,861	23,460	37,204
Performance Alloys and Composites
Segment Reporting Information [Line Items]
Net sales	103,699	93,566	292,024	304,507
Intersegment sales	47	191	226	733
Value-added sales	87,247	79,596	248,799	256,697
Operating profit (loss)	4,357	4,547	6,103	20,677
Advanced Materials
Segment Reporting Information [Line Items]
Net sales	107,250	113,635	328,927	394,922
Intersegment sales	21,505	15,316	54,110	48,830
Value-added sales	45,960	44,520	135,019	142,952
Operating profit (loss)	8,245	6,950	20,748	23,289
Corporate and Other
Segment Reporting Information [Line Items]
Net sales	38,670	37,153	113,955	111,804
Intersegment sales	0	0	0	0
Value-added sales	23,794	24,723	70,975	74,180
Operating profit (loss)	(2,451)	(636)	(3,391)	(6,762)
Other
Segment Reporting Information [Line Items]
Net sales	38,670	37,142	113,955	112,024
Intersegment sales	0	0	0	0
Value-added sales	25,803	25,671	75,548	75,438
Operating profit (loss)	3,432	2,273	9,803	4,512
Corporate
Segment Reporting Information [Line Items]
Net sales	0	11	0	(220)
Intersegment sales	0	0	0	0
Value-added sales	(2,009)	(948)	(4,573)	(1,258)
Operating profit (loss)	$ (5,883)	$ (2,909)	$ (13,194)	$ (11,274)

Other-net Other-net (Detail)

Other-net Other-net (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Other Income and Expenses [Abstract]
Foreign currency exchange/translation loss (gain)	$ 336	$ (1,256)	$ 977	$ (4,569)
Amortization of intangible assets	1,148	1,256	3,444	3,769
Other Noninterest Expense	1,665	1,686	4,851	5,554
Net loss (gain) on disposal of fixed assets	94	2	(601)	310
Recovery from insurance	0	0	0	(3,800)
Legal recoveries	0	(500)	0	(1,825)
Other Net	(53)	402	326	29
Total	$ 3,190	$ 1,590	$ 8,997	$ (532)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,616	$ 2,883	$ 3,081	$ 9,868
Effective tax rate	16.70%	28.10%	14.00%	27.90%
Net tax benefit resulting from discrete items			$ 1,000

Earnings Per Share Earnings P34

Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Numerator For Basic And Diluted EPS:
Net income	$ 8,045	$ 7,392	$ 18,962	$ 25,443
Denominator for basic EPS:
Weighted-average shares outstanding	19,957	20,087	19,996	20,128
Effect of dilutive securities:
Diluted potential common shares (in shares)	235	296	213	330
Denominator for diluted EPS:
Adjusted weighted-average shares outstanding	20,192	20,383	20,209	20,458
Basic (in usd per share)	$ 0.40	$ 0.37	$ 0.95	$ 1.26
Diluted EPS (in usd per share)	$ 0.40	$ 0.36	$ 0.94	$ 1.24
Performance Shares
Effect of dilutive securities:
Dilutive effect of share-based compensation (in shares)	83	60	61	53
Restricted Stock Units (RSUs)
Effect of dilutive securities:
Dilutive effect of share-based compensation (in shares)	82	113	86	103
Stock Appreciation Rights (SARs)
Effect of dilutive securities:
Dilutive effect of share-based compensation (in shares)	70	123	66	174

Earnings Per Share Earnings P35

Earnings Per Share Earnings Per Share (Details 1) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Stock Appreciation Rights (SARs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock appreciation rights excluded from diluted EPS calculation	982,588	487,248	993,418	379,676

Depreciation and Amortization (

Depreciation and Amortization (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Reduction in Unearned Income	$ 42,515		$ 45,953
Depreciation Expense Offset By Government Reimbursement	(34,379)	$ (28,462)
Depreciation Expense Reimbursement [Member]
Property, Plant and Equipment [Line Items]
Reimbursement Revenue	63,500
Reduction in Unearned Income	3,400	4,700
Depreciation Expense Offset By Government Reimbursement	$ (3,400)	$ (4,700)

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Principally average cost:
Raw materials and supplies	$ 35,792	$ 37,463
Work in process	176,763	180,458
Finished goods	41,896	38,135
Inventory, Gross	254,451	256,056
Inventory, LIFO Reserve	44,238	44,236
Inventories	$ 210,213	$ 211,820

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Inventory Disclosure [Abstract]
LIFO liquidation benefit	$ 0	$ 500,000	$ 3,200,000	$ 2,400,000

Pensions and Other Post-emplo39

Pensions and Other Post-employment Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Pension Benefits [Member]
Components of net periodic benefit cost
Service cost	$ 1,946	$ 2,231	$ 5,838	$ 6,692
Interest cost	2,595	2,500	7,785	7,500
Expected return on plan assets	(3,488)	(3,354)	(10,464)	(10,062)
Amortization of prior service benefit	(115)	(113)	(345)	(337)
Amortization of net loss	1,431	1,820	4,292	5,459
Net periodic benefit cost (benefit)	2,369	3,084	7,106	9,252
Other Benefits [Member]
Components of net periodic benefit cost
Service cost	26	29	77	87
Interest cost	140	139	422	415
Expected return on plan assets	0	0	0	0
Amortization of prior service benefit	(374)	(374)	(1,122)	(1,122)
Amortization of net loss	0	0	0	0
Net periodic benefit cost (benefit)	$ (208)	$ (206)	$ (623)	$ (620)

Pensions and Other Post-emplo40

Pensions and Other Post-employment Benefits - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015
Other Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Domestic defined benefit pension plan	$ 12,000	$ 8,000

Accumulated Other Comprehensi41

Accumulated Other Comprehensive Income - (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015	Jul. 01, 2016	Dec. 31, 2015	Jul. 03, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Rollward]
Accumulated other comprehensive loss	$ (75,353)	$ (82,205)	$ (75,353)	$ (82,205)	$ (76,625)	$ (80,705)	$ (82,288)	$ (82,237)
Activity
Other comprehensive income (loss) before reclassifications	341	(88)	1,347	1,317
Amounts reclassified from accumulated other comprehensive income	1,351	(27)	3,838	(835)
Net current period other comprehensive income (loss) before tax	1,692	(115)	5,185	482
Deferred taxes on current period activity	420	(198)	(167)	450
Net change in other comprehensive income	1,272	83	5,352	32
Pension and Post Employment Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Rollward]
Accumulated other comprehensive loss	(73,873)	(78,957)	(73,873)	(78,957)	(74,546)	(76,796)	(79,858)	(81,662)
Activity
Other comprehensive income (loss) before reclassifications	0	0	0	14
Amounts reclassified from accumulated other comprehensive income	1,015	1,396	3,045	4,186
Net current period other comprehensive income (loss) before tax	1,015	1,396	3,045	4,200
Deferred taxes on current period activity	342	495	122	1,495
Net change in other comprehensive income	673	901	2,923	2,705
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Rollward]
Accumulated other comprehensive loss	(2,570)	(5,048)	(2,570)	(5,048)	(3,037)	(5,488)	(5,407)	(4,153)
Activity
Other comprehensive income (loss) before reclassifications	467	359	2,918	(895)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net current period other comprehensive income (loss) before tax	467	359	2,918	(895)
Deferred taxes on current period activity	0	0	0	0
Net change in other comprehensive income	467	359	2,918	(895)
Forward Contract | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Rollward]
Accumulated other comprehensive loss	1,090	1,800	1,090	1,800	$ 958	$ 1,579	$ 2,977	$ 3,578
Activity
Other comprehensive income (loss) before reclassifications	(126)	(447)	(1,571)	2,198
Amounts reclassified from accumulated other comprehensive income	336	(1,423)	793	(5,021)
Net current period other comprehensive income (loss) before tax	210	(1,870)	(778)	(2,823)
Deferred taxes on current period activity	78	(693)	(289)	(1,045)
Net change in other comprehensive income	$ 132	$ (1,177)	$ (489)	$ (1,778)

Stock-based Compensation Expe42

Stock-based Compensation Expense - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.1	$ 0.5	$ 4.4	$ 5.9
Risk-free interest rate			1.25%
Dividend yield			1.40%
Volatility Rate			38.00%
Expected term (in years)			5 years 8 months
Unearned Compensation	$ 5.9		$ 5.9
Stock Settled Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted in period			69,212
Grant date fair value per unit (in usd per share)			$ 25.96
Cash Settled Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted in period			28,180
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted in period			221,065
Weighted average exercise price on SARs granted in period			$ 25.19
Grant date fair value per unit (in usd per share)			8.07
Stock Settled Performance Based Restricted Stock Units (PRSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value per unit (in usd per share)			$ 22.77
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years

Fair Value of Financial Instr43

Fair Value of Financial Instruments - Summary of Fair Value Information and Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial Assets
Deferred Compensation Investment	$ 1,699	$ 2,524
Foreign Currency Contract	64	462
Assets Fair Value Disclosure	1,763	2,986
Financial Liabilities
Deferred Compensation Liability	1,699	2,524
Foreign Currency Contract	560	180
Liabilities Fair Value Disclosure	2,259	2,704
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Deferred Compensation Investment	1,699	2,503
Foreign Currency Contract	0	0
Assets Fair Value Disclosure	1,699	2,503
Financial Liabilities
Deferred Compensation Liability	1,699	2,503
Foreign Currency Contract	0	0
Liabilities Fair Value Disclosure	1,699	2,503
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Deferred Compensation Investment	0	21
Foreign Currency Contract	64	462
Assets Fair Value Disclosure	64	483
Financial Liabilities
Deferred Compensation Liability	0	21
Foreign Currency Contract	560	180
Liabilities Fair Value Disclosure	560	201
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Deferred Compensation Investment	0	0
Foreign Currency Contract	0	0
Assets Fair Value Disclosure	0	0
Financial Liabilities
Deferred Compensation Liability	0	0
Foreign Currency Contract	0	0
Liabilities Fair Value Disclosure	$ 0	$ 0

Derivative Instruments and He44

Derivative Instruments and Hedging Activity - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	$ 17,312,000		$ 38,935,000
Derivative, Fair Value, Net	(496,000)		282,000
Ineffective expense	0	$ 0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(1,600,000)	$ 2,200,000
Prepaid Expenses and Other Current Assets [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Notional Amount	8,549,000		23,319,000
Derivative Asset, Fair Value, Gross Asset	64,000		462,000
Prepaid Expenses and Other Current Assets [Member] | Japan, Yen | Forward Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Notional Amount	0		5,138,000
Derivative Asset, Fair Value, Gross Asset	0		60,000
Prepaid Expenses and Other Current Assets [Member] | Euro Member Countries, Euro | Forward Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Notional Amount	8,549,000		18,181,000
Derivative Asset, Fair Value, Gross Asset	64,000		402,000
Other Current Liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Notional Amount	8,763,000		15,616,000
Derivative Liability, Fair Value, Gross Liability	(560,000)		(180,000)
Other Current Liabilities [Member] | Japan, Yen | Forward Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Notional Amount	4,320,000		5,102,000
Derivative Liability, Fair Value, Gross Liability	(461,000)		(94,000)
Other Current Liabilities [Member] | Euro Member Countries, Euro | Forward Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Notional Amount	4,443,000		10,514,000
Derivative Liability, Fair Value, Gross Liability	$ (99,000)		$ (86,000)

Contingencies - Additional Info

Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)claim	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Number of CBD cases outstanding	1
Accrual for Environmental Loss Contingencies, Significant Assumptions	The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies.
Number of CBD cases on appeal	1
Undiscounted reserve balance | $	$ 6	$ 5.7