Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
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 | Jun. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | MTRN |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 20,038,672 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 295,842 | $ 249,776 | $ 536,511 | $ 485,287 |
Cost of sales | 241,285 | 204,470 | 438,958 | 396,624 |
Gross margin | 54,557 | 45,306 | 97,553 | 88,663 |
Selling, general, and administrative expense | 38,075 | 32,437 | 71,703 | 62,924 |
Research and development expense | 3,544 | 3,171 | 6,674 | 6,623 |
Other net | 3,204 | 3,921 | 6,022 | 5,807 |
Operating profit | 9,734 | 5,777 | 13,154 | 13,309 |
Interest expense—net | 695 | 512 | 1,188 | 927 |
Income before income taxes | 9,039 | 5,265 | 11,966 | 12,382 |
Income tax (benefit) expense | 1,726 | (284) | 1,603 | 1,465 |
Net income | $ 7,313 | $ 5,549 | $ 10,363 | $ 10,917 |
Basic earnings per share: | ||||
Net income per share of common stock (in dollars per share) | $ 0.37 | $ 0.28 | $ 0.52 | $ 0.55 |
Diluted earnings per share: | ||||
Net income per share of common stock (in dollars per share) | 0.36 | 0.27 | 0.51 | 0.54 |
Cash dividends per share (in dollars per share) | $ 0.1 | $ 0.095 | $ 0.195 | $ 0.185 |
Weighted-average number of shares of common stock outstanding: | ||||
Basic (in shares) | 20,012 | 20,015 | 19,991 | 20,016 |
Diluted (in shares) | 20,347 | 20,214 | 20,348 | 20,220 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,313 | $ 5,549 | $ 10,363 | $ 10,917 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 275 | 1,167 | 1,378 | 2,451 |
Derivative and hedging activity, net of tax | (174) | 302 | (635) | (621) |
Pension and post-employment benefit adjustment, net of tax | 759 | 675 | 1,516 | 2,250 |
Other comprehensive income | 860 | 2,144 | 2,259 | 4,080 |
Comprehensive income | $ 8,173 | $ 7,693 | $ 12,622 | $ 14,997 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 18,497 | $ 31,464 |
Accounts receivable | 133,674 | 100,817 |
Inventories | 215,987 | 200,865 |
Prepaid and other current assets | 22,162 | 12,138 |
Total current assets | 390,320 | 345,284 |
Long-term deferred income taxes | 40,543 | 39,409 |
Property, plant, and equipment | 872,618 | 861,267 |
Less allowances for depreciation, depletion, and amortization | (622,351) | (608,636) |
Property, plant, and equipment—net | 250,267 | 252,631 |
Intangible assets | 12,074 | 11,074 |
Other assets | 6,183 | 5,950 |
Goodwill | 90,035 | 86,950 |
Total Assets | 789,422 | 741,298 |
Current liabilities | ||
Short-term debt | 3,140 | 733 |
Accounts payable | 46,064 | 32,533 |
Salaries and wages | 28,541 | 29,885 |
Other liabilities and accrued items | 25,878 | 21,340 |
Income taxes | 3,195 | 4,781 |
Unearned revenue | 2,797 | 1,105 |
Total current liabilities | 109,615 | 90,377 |
Other long-term liabilities | 17,700 | 17,979 |
Retirement and post-employment benefits | 94,549 | 91,505 |
Unearned income | 39,076 | 41,369 |
Long-term income taxes | 1,994 | 2,100 |
Deferred income taxes | 277 | 274 |
Long-term debt | 23,254 | 3,605 |
Serial preferred stock | 0 | 0 |
Common stock | 218,902 | 212,702 |
Retained earnings | 524,367 | 517,903 |
Common stock in treasury | (160,785) | (154,399) |
Accumulated other comprehensive loss | (83,922) | (86,181) |
Other equity transactions | 4,395 | 4,064 |
Total shareholders' equity | 502,957 | 494,089 |
Total Liabilities and Shareholders’ Equity | $ 789,422 | $ 741,298 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 10,363 | $ 10,917 |
Adjustments to reconcile net income to net cash provided from (used in) operating activities: | ||
Depreciation, depletion, and amortization | 20,725 | 23,497 |
Amortization of deferred financing costs in interest expense | 440 | 281 |
Stock-based compensation expense (non-cash) | 3,507 | 1,919 |
(Gain) loss on sale of property, plant, and equipment | 147 | (695) |
Deferred income tax (benefit) expense | 658 | (1,489) |
Changes in assets and liabilities net of acquired assets and liabilities: | ||
Decrease (increase) in accounts receivable | (30,882) | (13,013) |
Decrease (increase) in inventory | (6,498) | 1,153 |
Decrease (increase) in prepaid and other current assets | (9,267) | (782) |
Increase (decrease) in accounts payable and accrued expenses | 15,519 | (7,871) |
Increase (decrease) in unearned revenue | 1,685 | (743) |
Increase (decrease) in interest and taxes payable | (1,115) | 1,310 |
Increase (decrease) in long-term liabilities | (3,891) | (6,221) |
Other-net | (1,088) | 1,598 |
Net cash (used in) operating activities | 303 | 9,861 |
Cash flows from investing activities: | ||
Payments for purchase of property, plant, and equipment | (11,252) | (14,326) |
Payments for mine development | (509) | (7,806) |
Payments for acquisition | (16,504) | 0 |
Proceeds from sale of property, plant, and equipment | 27 | 827 |
Net cash (used in) investing activities | (28,238) | (21,305) |
Cash flows from financing activities: | ||
Proceeds from issuance of short-term debt, net | 2,387 | 5,805 |
Proceeds from issuance of long-term debt | 45,000 | 10,000 |
Repayment of long-term debt | (25,362) | (399) |
Principal payments under capital lease obligations | (383) | (425) |
Cash dividends paid | (3,899) | (3,704) |
Deferred financing costs | (300) | 0 |
Payments Related to Tax Withholding for Share-based Compensation | (2,302) | (827) |
Repurchase of common stock | (1,086) | (2,663) |
Net cash provided by financing activities | 14,055 | 7,787 |
Effects of exchange rate changes | 913 | 406 |
Net change in cash and cash equivalents | (12,967) | (3,251) |
Cash and cash equivalents at beginning of period | 31,464 | 24,236 |
Cash and cash equivalents at end of period | $ 18,497 | $ 20,985 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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 (referred to herein as the Company, our, we, or us) 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 2017 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 2016 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Business Combinations: The Company records assets acquired and liabilities assumed at the date of acquisition at their respective fair values. Any intangible assets acquired in a business combination are recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The amounts reflected in Note B to the Consolidated Financial Statements are the results of the preliminary purchase price allocation and will be updated upon completion of the final valuation. The Company is required to complete the purchase price allocation within 12 months of the acquisition date. If such completion of the allocation results in a change in the preliminary values, the measurement period adjustment will be recognized in the period in which the adjustment amount is determined. New Pronouncements Adopted: In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted the new guidance during the first quarter of 2017. An impact of adoption was the recognition of excess tax benefits in Income tax expense rather than Shareholders' equity in 2017. As a result, the Company recognized discrete tax benefits of $82 and $374 in Income tax (benefit) expense during the second quarter and first six months of 2017, respectively. The cash flow classification requirements of ASU 2016-09 were applied retrospectively. As a result, for the six months ended July 1, 2016, cash flows from operating activities increased by $827 with a corresponding decrease to cash flows from financing activities. None of the other provisions in this ASU had a material effect on the Company's consolidated financial statements. New Pronouncements Issued: In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires an employer to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments also allow only the service cost component to be eligible for capitalization. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The amendments should be applied retrospectively for the presentation of service cost and other components of net benefit cost on the income statement and prospectively for the capitalization of service cost and net periodic postretirement benefits in assets. The Company is currently evaluating the impact of adopting this new guidance on its 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 its 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 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. To evaluate the impact of adopting this new guidance on the consolidated financial statements, we established a cross-functional implementation team to assess our revenue streams against the requirements of this ASU. In addition, we are in the process of identifying and implementing changes to our processes and controls to meet the standard's updated reporting and disclosure requirements. The Company plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. The Company continues to update our assessment of the impact of the standard and related updates to its consolidated financial statements, and will disclose material impacts, if any. 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. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition Disclosure | Acquisitions On February 28, 2017, the Company acquired the target materials business of the Heraeus Group (HTB), of Hanau, Germany, for $16.5 million . This business manufactures precious and non-precious metal target materials for the architectural and automotive glass, electronic display, photovoltaic and semiconductor markets at facilities in Germany, Taiwan, and the United States. This business will operate within the Advanced Materials segment, and the results of operations are included as of the date of acquisition. The Company will make adjustments to the purchase price allocation prior to completion of the measurement period, as necessary. Only items identified as of the acquisition date will be considered for subsequent adjustment. The purchase price allocation for the acquisition is as follows: (Thousands) Amount Assets: Inventories $ 7,140 Prepaid and other current assets 902 Long-term deferred income taxes 1,450 Property, plant, and equipment 7,637 Intangible assets 3,236 Goodwill 2,891 Total assets acquired $ 23,256 Liabilities: Other liabilities and accrued items $ 1,030 Other long-term liabilities 430 Retirement and post-employment benefits 5,292 Total liabilities assumed $ 6,752 Total purchase price $ 16,504 As part of the acquisition, the Company recorded approximately $2.9 million of goodwill. Goodwill was calculated as the excess of the purchase price over the estimated fair values of the tangible net assets and intangible assets acquired. Also, the Company acquired approximately $3.2 million of other intangible assets, which will be amortized using the straight-line method over an average life of about ten years . The following table reports the intangible assets by asset category and accumulated amortization from the closing date through June 30, 2017: (Thousands) Value at Acquisition Accumulated Amortization Useful Life Customer relationships $ 1,861 $ (41 ) 15 years Technology 1,375 (154 ) 3 years Total $ 3,236 $ (195 ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has the following operating segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Company’s operating segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance. Performance Alloys and Composites produces strip and bulk form alloy products, strip metal products with clad inlay and overlay metals, beryllium-based metals, beryllium, and aluminum metal matrix composites, in rod, sheet, foil, and a variety of customized forms, beryllia ceramics, and bulk metallic glass materials. Advanced Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, and ultra-fine wire. Precision Coatings produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials. The Other reportable segment includes unallocated corporate costs and assets. (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total Second Quarter 2017 Net sales $ 108,541 $ 157,044 $ 30,257 $ — $ 295,842 Intersegment sales 4 13,247 — — 13,251 Value-added sales 92,686 62,041 22,613 (1,241 ) 176,099 Operating profit (loss) 5,548 8,670 2,314 (6,798 ) 9,734 Second Quarter 2016 Net sales $ 97,696 $ 113,557 $ 38,523 $ — $ 249,776 Intersegment sales 117 17,429 — — 17,546 Value-added sales 83,350 46,993 25,111 (1,520 ) 153,934 Operating profit (loss) 234 7,320 2,272 (4,049 ) 5,777 First Six Months 2017 Net sales $ 201,094 $ 271,780 $ 63,637 $ — $ 536,511 Intersegment sales 59 29,694 — — 29,753 Value-added sales 171,897 109,329 45,914 (2,060 ) 325,080 Operating profit (loss) 5,737 15,117 4,532 (12,232 ) 13,154 First Six Months 2016 Net sales $ 188,325 $ 221,677 $ 75,285 $ — $ 485,287 Intersegment sales 179 32,605 — — 32,784 Value-added sales 161,552 89,059 49,745 (2,564 ) 297,792 Operating profit (loss) 1,746 12,503 6,371 (7,311 ) 13,309 Intersegment sales are eliminated in consolidation. |
Other-net
Other-net | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other-net | Other-net Other-net expense for the second quarter and first six months of 2017 and 2016 is summarized as follows: Second Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, (Thousands) 2017 2016 2017 2016 Foreign currency exchange/translation loss (gain) $ (336 ) $ 650 $ (593 ) $ 641 Amortization of intangible assets 1,232 1,148 2,277 2,296 Metal consignment fees 2,062 1,653 3,747 3,186 Net loss (gain) on disposal of fixed assets 119 25 147 (695 ) Other items 127 445 444 379 Total $ 3,204 $ 3,921 $ 6,022 $ 5,807 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring In the first six months of 2017, the Company took cost reduction measures in order to align corporate costs with lower business levels. These actions were accomplished through elimination of vacant positions, consolidation of roles, and staff reduction. Costs associated with the plan included severance associated with approximately five employees and other related costs. In 2016, the Company initiated a plan to close the Fukuya, Japan service center, which is a part of the Performance Alloys and Composites segment. Costs associated with the plan included severance associated with approximately twelve employees and related facility exit costs. These costs are presented in the Consolidated Statements of Income as follows: Second Quarter Ended Six Months Ended (Thousands) June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 Cost of sales $ 117 $ — $ 117 $ — Selling, general, and administrative (SG&A) expense 578 — 1,132 — Total $ 695 $ — $ 1,249 $ — Remaining severance payments related to this initiative of $0.3 million are reflected within Other liabilities and accrued items in the Consolidated Balance Sheets. The Company does not expect to incur additional costs related to these initiatives. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $1.7 million in the second quarter of 2017 , an effective tax rate of 19.1% against income before income taxes and an income tax benefit of $0.3 million in the second quarter of 2016 , with a negative effective tax rate of 5.4% against income before income taxes. In the first six months of 2017, income tax expense of $1.6 million was calculated using an effective tax rate of 13.4% , while income tax expense of $1.5 million in the first six months of 2016 was calculated using an effective tax rate of 11.8% . The Company recorded discrete benefits of $0.1 million and $0.8 million , respectively, in the second quarter and first six months of 2017. Of these amounts, $0.4 million in the first six months of 2017 related to officer compensation which was previously considered non-deductible and $0.1 million in the second quarter and $0.4 million in the first six months of 2017 related to the adoption of ASU 2016-09, Improvements to Employee Share-based Payment Accounting. In the second quarter of 2016, the Company recorded a discrete tax benefit of $0.9 million , resulting from international tax planning initiatives. For the first six months of 2016, discrete items amounted to a net benefit of $0.8 million . In addition to the discrete benefits listed above, the difference between the statutory and effective rates in the second quarter and first six months of both years was primarily due to the impact of percentage depletion, the foreign rate differential, the research and development credit, and other items. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted EPS: Second Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, (Thousands, except per share amounts) 2017 2016 2017 2016 Numerator for basic and diluted EPS: Net income $ 7,313 $ 5,549 $ 10,363 $ 10,917 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,012 20,015 19,991 20,016 Effect of dilutive securities: Stock appreciation rights 125 63 152 63 Restricted stock units 102 75 102 90 Performance-based restricted stock units 108 61 103 51 Diluted potential common shares 335 199 357 204 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,347 20,214 20,348 20,220 Basic EPS $ 0.37 $ 0.28 $ 0.52 $ 0.55 Diluted EPS $ 0.36 $ 0.27 $ 0.51 $ 0.54 Stock appreciation rights (SARs) totaling 31,835 and 1,018,778 for the quarters ended June 30, 2017 and July 1, 2016 , respectively, and 67,761 and 1,018,778 for the six months ended June 30, 2017 and July 1, 2016, respectively, were excluded from the dilution calculation as their effect would have been anti-dilutive. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories on the Consolidated Balance Sheets are summarized as follows: June 30, Dec. 31, (Thousands) 2017 2016 Raw materials and supplies $ 41,222 $ 36,233 Work in process 178,063 169,327 Finished goods 39,858 38,147 Subtotal $ 259,143 $ 243,707 Less: LIFO reserve balance 43,156 42,842 Inventories $ 215,987 $ 200,865 The liquidation of last in, first out (LIFO) inventory layers increased cost of sales in both the second quarter and first six months of 2017 by $0.2 million . In the second quarter and first six months of 2016, cost of sales was reduced by $0.5 million and $3.2 million , respectively. |
Pensions and Other Post-employm
Pensions and Other Post-employment Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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 second quarter and first six months of 2017 and 2016 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 Second Quarter Ended Second Quarter Ended June 30, July 1, June 30, July 1, (Thousands) 2017 2016 2017 2016 Components of net periodic benefit cost Service cost $ 2,070 $ 1,946 $ 23 $ 25 Interest cost 2,370 2,595 99 141 Expected return on plan assets (3,671 ) (3,488 ) — — Amortization of prior service benefit (73 ) (115 ) (374 ) (374 ) Amortization of net loss 1,611 1,430 — — Net periodic benefit cost (benefit) $ 2,307 $ 2,368 $ (252 ) $ (208 ) Pension Benefits Other Benefits Six Months Ended Six Months Ended June 30, July 1, June 30, July 1, (Thousands) 2017 2016 2017 2016 Components of net periodic benefit cost Service cost $ 4,082 $ 3,891 $ 46 $ 51 Interest cost 4,726 5,190 198 282 Expected return on plan assets (7,329 ) (6,976 ) — — Amortization of prior service benefit (194 ) (230 ) (748 ) (748 ) Amortization of net loss 3,198 2,861 — — Net periodic benefit cost (benefit) $ 4,483 $ 4,736 $ (504 ) $ (415 ) The Company made contributions to the domestic defined benefit pension plan of $4.0 million and $8.0 million in the first six months of 2017 and 2016 , respectively. Beginning in 2017, the Company has elected to use a spot-rate approach to estimate the service and interest cost components of net periodic benefit cost for its defined benefit pension plans. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation. Historically, the Company used a weighted-average approach to determine the service and interest cost components. The change is being accounted for as a change in estimate and, accordingly, is being applied prospectively. The reduction in service and interest costs for 2017 associated with this change approximated $0.2 million and $0.5 million during the second quarter and first six months of 2017, respectively, and is expected to total approximately $1.0 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the second quarter and first six months of 2017 and 2016 are as follows: Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Precious Metals Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at March 31, 2017 $ 1,476 $ (100 ) $ 1,376 $ (81,601 ) $ (4,557 ) $ (84,782 ) Other comprehensive income (loss) before reclassifications (629 ) 393 (236 ) — 275 39 Amounts reclassified from accumulated other comprehensive income 47 (88 ) (41 ) 1,156 — 1,115 Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Precious Metals Total Pension and Post-Employment Benefits Foreign Currency Translation Total Net current period other comprehensive income (loss) before tax (582 ) 305 (277 ) 1,156 275 1,154 Deferred taxes on current period activity (215 ) 112 (103 ) 397 — 294 Net current period other comprehensive income (loss) after tax (367 ) 193 (174 ) 759 275 860 Balance at June 30, 2017 $ 1,109 $ 93 $ 1,202 $ (80,842 ) $ (4,282 ) $ (83,922 ) Balance at April 1, 2016 $ 656 $ — $ 656 $ (75,221 ) $ (4,204 ) $ (78,769 ) Other comprehensive income (loss) before reclassifications 98 — 98 — 1,167 1,265 Amounts reclassified from accumulated other comprehensive income 382 — 382 1,016 — 1,398 Net current period other comprehensive income (loss) before tax 480 — 480 1,016 1,167 2,663 Deferred taxes on current period activity 178 — 178 341 — 519 Net current period other comprehensive income (loss) after tax 302 — 302 675 1,167 2,144 Balance at July 1, 2016 $ 958 $ — $ 958 $ (74,546 ) $ (3,037 ) $ (76,625 ) Balance at December 31, 2016 $ 1,837 $ — $ 1,837 $ (82,358 ) $ (5,660 ) $ (86,181 ) Other comprehensive income (loss) before reclassifications (881 ) 235 (646 ) — 1,378 732 Amounts reclassified from accumulated other comprehensive income (214 ) (88 ) (302 ) 2,309 — 2,007 Net current period other comprehensive income (loss) before tax (1,095 ) 147 (948 ) 2,309 1,378 2,739 Deferred taxes on current period activity (367 ) 54 (313 ) 793 — 480 Net current period other comprehensive income (loss) after tax (728 ) 93 (635 ) 1,516 1,378 2,259 Balance at June 30, 2017 $ 1,109 $ 93 $ 1,202 $ (80,842 ) $ (4,282 ) $ (83,922 ) Balance at December 31, 2015 $ 1,579 $ — $ 1,579 $ (76,796 ) $ (5,488 ) $ (80,705 ) Other comprehensive income (loss) before reclassifications (1,445 ) — (1,445 ) — 2,451 1,006 Amounts reclassified from accumulated other comprehensive income 457 — 457 2,030 — 2,487 Net current period other comprehensive income (loss) before tax (988 ) — (988 ) 2,030 2,451 3,493 Deferred taxes on current period activity (367 ) — (367 ) (220 ) — (587 ) Net current period other comprehensive income (loss) after tax (621 ) — (621 ) 2,250 2,451 4,080 Balance at July 1, 2016 $ 958 $ — $ 958 $ (74,546 ) $ (3,037 ) $ (76,625 ) 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. Reclassifications from accumulated other comprehensive income of gains and losses on precious metal cash flow hedges are recorded in Cost of sales in the Consolidated Statements of Income. Refer to Note M 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 I for additional details on pension and post-employment expenses. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 6 Months Ended |
Jun. 30, 2017 | |
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 $2.4 million and $4.7 million in the second quarter and first six months of 2017 , respectively, compared to $1.1 million and $2.3 million in the same periods of 2016. The Company granted 97,015 SARs to certain employees during the first six months of 2017 . The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the six months ended June 30, 2017 were $35.26 and $10.89 , respectively. The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model: Risk-free interest rate 1.92 % Dividend yield 1.1 % Volatility 34.0 % Expected term (in years) 5.6 The Company granted 62,185 stock-settled restricted stock units (RSUs) and 32,466 cash-settled RSUs to certain employees and non-employee directors during the first six months of 2017 . 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 $34.95 for stock-settled RSUs granted during the six months ended June 30, 2017 . 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 six months of 2017 . The weighted-average fair value of the stock-settled PRSUs was $30.28 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 June 30, 2017 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $6.3 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 : (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) 2017 2016 2017 2016 2017 2016 2017 2016 Financial Assets Deferred compensation investments $ 2,075 $ 1,734 $ 2,075 $ 1,734 $ — $ — $ — $ — Foreign currency forward contracts 72 691 — — 72 691 — — Precious metal swaps 191 — — — 191 — — — Total $ 2,338 $ 2,425 $ 2,075 $ 1,734 $ 263 $ 691 $ — $ — Financial Liabilities Deferred compensation liability $ 2,075 $ 1,734 $ 2,075 $ 1,734 $ — $ — $ — $ — Foreign currency forward contracts 1,066 1 — — 1,066 1 — — Precious metal swaps 44 — — — 44 — — — Total $ 3,185 $ 1,735 $ 2,075 $ 1,734 $ 1,110 $ 1 $ — $ — 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 Sheets approximate fair values as of June 30, 2017 and December 31, 2016. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 6 Months Ended |
Jun. 30, 2017 | |
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 uses 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. In certain circumstances, the Company also refines metal from the customer and may retain a portion of the refined metal as payment. The Company may elect to enter into a forward contract to sell precious metal to reduce the Company's price exposure. 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 not designated as hedging instruments and balance sheet classification as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Other liabilities and accrued items Foreign currency forward contracts - euro $ 12,223 $ (590 ) $ — $ — Total $ 12,223 $ (590 ) $ — $ — These outstanding foreign currency derivatives were related to intercompany loans. Other-net included foreign currency losses of $0.5 million relating to these derivatives during the second quarter of 2017 and $0.6 million during the first six months of 2017. The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges and balance sheet classification as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Prepaid expenses Foreign currency forward contracts - yen $ 1,450 $ 64 $ 2,418 $ 239 Foreign currency forward contracts - euro 915 8 6,493 452 Precious metal swaps 6,402 125 — — Total 8,767 197 8,911 691 Other assets Precious metal swaps 3,335 66 — — Total 3,335 66 — — Other liabilities and accrued items Foreign currency forward contracts - euro 10,523 (476 ) 537 (1 ) Precious metal swaps 2,576 (42 ) — — Total 13,099 (518 ) 537 (1 ) Other long-term liabilities Precious metal swaps 188 (2 ) — — Total $ 25,389 $ (257 ) $ 9,448 $ 690 All of these contracts were designated and effective as cash flow hedges. No ineffectiveness expense was recorded in the second quarter or first six months of 2017 or 2016. Changes in the fair value of outstanding cash flow hedges recorded in OCI for the first six months of 2017 and 2016 totaled decreases of $0.6 million and $1.4 million , respectively. The Company expects to relieve substantially the entire balance in OCI as of June 30, 2017 to the Consolidated Statements of Income within the next 18-month period. Refer to Note J for additional OCI details. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Loss Contingency [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies Legal Proceedings . For information regarding legal proceedings relating to Chronic Beryllium Disease Claims , refer to Note Q ("Contingencies and Commitments") in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . Other litigation. The Company is party to several pending legal proceedings and claims arising in the normal course of business. The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matters. To the extent there is a reasonable possibility that the losses could exceed any amounts accrued, the Company will adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. Environmental Proceedings. 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 $6.2 million at June 30, 2017 and $6.0 million at December 31, 2016 . 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) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) 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 2017 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 2016 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 Business Co
Accounting Policies Business Combinations (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations Policy | Business Combinations: The Company records assets acquired and liabilities assumed at the date of acquisition at their respective fair values. Any intangible assets acquired in a business combination are recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. |
Accounting Policies New Pronoun
Accounting Policies New Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Pronouncements Adopted: In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted the new guidance during the first quarter of 2017. An impact of adoption was the recognition of excess tax benefits in Income tax expense rather than Shareholders' equity in 2017. As a result, the Company recognized discrete tax benefits of $82 and $374 in Income tax (benefit) expense during the second quarter and first six months of 2017, respectively. The cash flow classification requirements of ASU 2016-09 were applied retrospectively. As a result, for the six months ended July 1, 2016, cash flows from operating activities increased by $827 with a corresponding decrease to cash flows from financing activities. None of the other provisions in this ASU had a material effect on the Company's consolidated financial statements. New Pronouncements Issued: In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires an employer to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments also allow only the service cost component to be eligible for capitalization. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The amendments should be applied retrospectively for the presentation of service cost and other components of net benefit cost on the income statement and prospectively for the capitalization of service cost and net periodic postretirement benefits in assets. The Company is currently evaluating the impact of adopting this new guidance on its 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 its 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 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. To evaluate the impact of adopting this new guidance on the consolidated financial statements, we established a cross-functional implementation team to assess our revenue streams against the requirements of this ASU. In addition, we are in the process of identifying and implementing changes to our processes and controls to meet the standard's updated reporting and disclosure requirements. The Company plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. The Company continues to update our assessment of the impact of the standard and related updates to its consolidated financial statements, and will disclose material impacts, if any. 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The purchase price allocation for the acquisition is as follows: (Thousands) Amount Assets: Inventories $ 7,140 Prepaid and other current assets 902 Long-term deferred income taxes 1,450 Property, plant, and equipment 7,637 Intangible assets 3,236 Goodwill 2,891 Total assets acquired $ 23,256 Liabilities: Other liabilities and accrued items $ 1,030 Other long-term liabilities 430 Retirement and post-employment benefits 5,292 Total liabilities assumed $ 6,752 Total purchase price $ 16,504 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table reports the intangible assets by asset category and accumulated amortization from the closing date through June 30, 2017: (Thousands) Value at Acquisition Accumulated Amortization Useful Life Customer relationships $ 1,861 $ (41 ) 15 years Technology 1,375 (154 ) 3 years Total $ 3,236 $ (195 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | (Thousands) Performance Alloys and Composites Advanced Materials Precision Coatings Other Total Second Quarter 2017 Net sales $ 108,541 $ 157,044 $ 30,257 $ — $ 295,842 Intersegment sales 4 13,247 — — 13,251 Value-added sales 92,686 62,041 22,613 (1,241 ) 176,099 Operating profit (loss) 5,548 8,670 2,314 (6,798 ) 9,734 Second Quarter 2016 Net sales $ 97,696 $ 113,557 $ 38,523 $ — $ 249,776 Intersegment sales 117 17,429 — — 17,546 Value-added sales 83,350 46,993 25,111 (1,520 ) 153,934 Operating profit (loss) 234 7,320 2,272 (4,049 ) 5,777 First Six Months 2017 Net sales $ 201,094 $ 271,780 $ 63,637 $ — $ 536,511 Intersegment sales 59 29,694 — — 29,753 Value-added sales 171,897 109,329 45,914 (2,060 ) 325,080 Operating profit (loss) 5,737 15,117 4,532 (12,232 ) 13,154 First Six Months 2016 Net sales $ 188,325 $ 221,677 $ 75,285 $ — $ 485,287 Intersegment sales 179 32,605 — — 32,784 Value-added sales 161,552 89,059 49,745 (2,564 ) 297,792 Operating profit (loss) 1,746 12,503 6,371 (7,311 ) 13,309 |
Other-net (Tables)
Other-net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Summary of Other-Net Expense | Other-net expense for the second quarter and first six months of 2017 and 2016 is summarized as follows: Second Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, (Thousands) 2017 2016 2017 2016 Foreign currency exchange/translation loss (gain) $ (336 ) $ 650 $ (593 ) $ 641 Amortization of intangible assets 1,232 1,148 2,277 2,296 Metal consignment fees 2,062 1,653 3,747 3,186 Net loss (gain) on disposal of fixed assets 119 25 147 (695 ) Other items 127 445 444 379 Total $ 3,204 $ 3,921 $ 6,022 $ 5,807 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | These costs are presented in the Consolidated Statements of Income as follows: Second Quarter Ended Six Months Ended (Thousands) June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 Cost of sales $ 117 $ — $ 117 $ — Selling, general, and administrative (SG&A) expense 578 — 1,132 — Total $ 695 $ — $ 1,249 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted EPS: Second Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, (Thousands, except per share amounts) 2017 2016 2017 2016 Numerator for basic and diluted EPS: Net income $ 7,313 $ 5,549 $ 10,363 $ 10,917 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,012 20,015 19,991 20,016 Effect of dilutive securities: Stock appreciation rights 125 63 152 63 Restricted stock units 102 75 102 90 Performance-based restricted stock units 108 61 103 51 Diluted potential common shares 335 199 357 204 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,347 20,214 20,348 20,220 Basic EPS $ 0.37 $ 0.28 $ 0.52 $ 0.55 Diluted EPS $ 0.36 $ 0.27 $ 0.51 $ 0.54 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories on the Consolidated Balance Sheets are summarized as follows: June 30, Dec. 31, (Thousands) 2017 2016 Raw materials and supplies $ 41,222 $ 36,233 Work in process 178,063 169,327 Finished goods 39,858 38,147 Subtotal $ 259,143 $ 243,707 Less: LIFO reserve balance 43,156 42,842 Inventories $ 215,987 $ 200,865 |
Pensions and Other Post-emplo29
Pensions and Other Post-employment Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following is a summary of the net periodic benefit cost for the second quarter and first six months of 2017 and 2016 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 Second Quarter Ended Second Quarter Ended June 30, July 1, June 30, July 1, (Thousands) 2017 2016 2017 2016 Components of net periodic benefit cost Service cost $ 2,070 $ 1,946 $ 23 $ 25 Interest cost 2,370 2,595 99 141 Expected return on plan assets (3,671 ) (3,488 ) — — Amortization of prior service benefit (73 ) (115 ) (374 ) (374 ) Amortization of net loss 1,611 1,430 — — Net periodic benefit cost (benefit) $ 2,307 $ 2,368 $ (252 ) $ (208 ) Pension Benefits Other Benefits Six Months Ended Six Months Ended June 30, July 1, June 30, July 1, (Thousands) 2017 2016 2017 2016 Components of net periodic benefit cost Service cost $ 4,082 $ 3,891 $ 46 $ 51 Interest cost 4,726 5,190 198 282 Expected return on plan assets (7,329 ) (6,976 ) — — Amortization of prior service benefit (194 ) (230 ) (748 ) (748 ) Amortization of net loss 3,198 2,861 — — Net periodic benefit cost (benefit) $ 4,483 $ 4,736 $ (504 ) $ (415 ) |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the second quarter and first six months of 2017 and 2016 are as follows: Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Precious Metals Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at March 31, 2017 $ 1,476 $ (100 ) $ 1,376 $ (81,601 ) $ (4,557 ) $ (84,782 ) Other comprehensive income (loss) before reclassifications (629 ) 393 (236 ) — 275 39 Amounts reclassified from accumulated other comprehensive income 47 (88 ) (41 ) 1,156 — 1,115 Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Precious Metals Total Pension and Post-Employment Benefits Foreign Currency Translation Total Net current period other comprehensive income (loss) before tax (582 ) 305 (277 ) 1,156 275 1,154 Deferred taxes on current period activity (215 ) 112 (103 ) 397 — 294 Net current period other comprehensive income (loss) after tax (367 ) 193 (174 ) 759 275 860 Balance at June 30, 2017 $ 1,109 $ 93 $ 1,202 $ (80,842 ) $ (4,282 ) $ (83,922 ) Balance at April 1, 2016 $ 656 $ — $ 656 $ (75,221 ) $ (4,204 ) $ (78,769 ) Other comprehensive income (loss) before reclassifications 98 — 98 — 1,167 1,265 Amounts reclassified from accumulated other comprehensive income 382 — 382 1,016 — 1,398 Net current period other comprehensive income (loss) before tax 480 — 480 1,016 1,167 2,663 Deferred taxes on current period activity 178 — 178 341 — 519 Net current period other comprehensive income (loss) after tax 302 — 302 675 1,167 2,144 Balance at July 1, 2016 $ 958 $ — $ 958 $ (74,546 ) $ (3,037 ) $ (76,625 ) Balance at December 31, 2016 $ 1,837 $ — $ 1,837 $ (82,358 ) $ (5,660 ) $ (86,181 ) Other comprehensive income (loss) before reclassifications (881 ) 235 (646 ) — 1,378 732 Amounts reclassified from accumulated other comprehensive income (214 ) (88 ) (302 ) 2,309 — 2,007 Net current period other comprehensive income (loss) before tax (1,095 ) 147 (948 ) 2,309 1,378 2,739 Deferred taxes on current period activity (367 ) 54 (313 ) 793 — 480 Net current period other comprehensive income (loss) after tax (728 ) 93 (635 ) 1,516 1,378 2,259 Balance at June 30, 2017 $ 1,109 $ 93 $ 1,202 $ (80,842 ) $ (4,282 ) $ (83,922 ) Balance at December 31, 2015 $ 1,579 $ — $ 1,579 $ (76,796 ) $ (5,488 ) $ (80,705 ) Other comprehensive income (loss) before reclassifications (1,445 ) — (1,445 ) — 2,451 1,006 Amounts reclassified from accumulated other comprehensive income 457 — 457 2,030 — 2,487 Net current period other comprehensive income (loss) before tax (988 ) — (988 ) 2,030 2,451 3,493 Deferred taxes on current period activity (367 ) — (367 ) (220 ) — (587 ) Net current period other comprehensive income (loss) after tax (621 ) — (621 ) 2,250 2,451 4,080 Balance at July 1, 2016 $ 958 $ — $ 958 $ (74,546 ) $ (3,037 ) $ (76,625 ) |
Stock-based Compensation Expe31
Stock-based Compensation Expense Tables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure 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 weighted-average assumptions in the Black-Scholes model: Risk-free interest rate 1.92 % Dividend yield 1.1 % Volatility 34.0 % Expected term (in years) 5.6 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 : (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) 2017 2016 2017 2016 2017 2016 2017 2016 Financial Assets Deferred compensation investments $ 2,075 $ 1,734 $ 2,075 $ 1,734 $ — $ — $ — $ — Foreign currency forward contracts 72 691 — — 72 691 — — Precious metal swaps 191 — — — 191 — — — Total $ 2,338 $ 2,425 $ 2,075 $ 1,734 $ 263 $ 691 $ — $ — Financial Liabilities Deferred compensation liability $ 2,075 $ 1,734 $ 2,075 $ 1,734 $ — $ — $ — $ — Foreign currency forward contracts 1,066 1 — — 1,066 1 — — Precious metal swaps 44 — — — 44 — — — Total $ 3,185 $ 1,735 $ 2,075 $ 1,734 $ 1,110 $ 1 $ — $ — |
Derivative Instruments and He33
Derivative Instruments and Hedging Activity Tables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DerivativeInstrumentsNonHedging [Table Text Block] | The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments and balance sheet classification as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Other liabilities and accrued items Foreign currency forward contracts - euro $ 12,223 $ (590 ) $ — $ — Total $ 12,223 $ (590 ) $ — $ — |
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 designated as cash flow hedges and balance sheet classification as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (Thousands) Notional Amount Fair Value Notional Amount Fair Value Prepaid expenses Foreign currency forward contracts - yen $ 1,450 $ 64 $ 2,418 $ 239 Foreign currency forward contracts - euro 915 8 6,493 452 Precious metal swaps 6,402 125 — — Total 8,767 197 8,911 691 Other assets Precious metal swaps 3,335 66 — — Total 3,335 66 — — Other liabilities and accrued items Foreign currency forward contracts - euro 10,523 (476 ) 537 (1 ) Precious metal swaps 2,576 (42 ) — — Total 13,099 (518 ) 537 (1 ) Other long-term liabilities Precious metal swaps 188 (2 ) — — Total $ 25,389 $ (257 ) $ 9,448 $ 690 |
Accounting Policies New Prounce
Accounting Policies New Prouncements Adopted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Discrete tax benefit | $ 100,000 | $ 900,000 | $ 800,000 | $ 800,000 |
Adjustments for New Accounting Pronouncement [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Discrete tax benefit | $ 82,000 | 374,000 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 827,000 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Business Acquisition [Line Items] | |
Inventories | $ 7,140 |
Prepaid and other current assets | 902 |
Long-term deferred income taxes | 1,450 |
Property, plant, and equipment | 7,637 |
Intangible Assets | 3,236 |
Goodwill | 2,891 |
Total assets acquired | 23,256 |
Other liabilities and accrued items | 1,030 |
Other long-term liabilities | 430 |
Retirement and post-employment benefits | 5,292 |
Total liabilities assumed | 6,752 |
Total purchase price | $ 16,504 |
Acquisitions (Details 1)
Acquisitions (Details 1) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible Assets | $ 3,236 |
Accumulated Amortization | 195 |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible Assets | 1,861 |
Accumulated Amortization | $ 41 |
Useful Life | 15 years |
Technology-Based Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible Assets | $ 1,375 |
Accumulated Amortization | $ 154 |
Useful Life | 3 years |
Acquisitions Textual (Details)
Acquisitions Textual (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Business Combinations [Abstract] | |
Total purchase price | $ 16,504 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Goodwill | $ 2,891 |
Intangible Assets | $ 3,236 |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 295,842 | $ 249,776 | $ 536,511 | $ 485,287 |
Intersegment sales | 13,251 | 17,546 | 29,753 | 32,784 |
Value-added sales | 176,099 | 153,934 | 325,080 | 297,792 |
Operating profit (loss) | 9,734 | 5,777 | 13,154 | 13,309 |
Performance Alloys and Composites | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 108,541 | 97,696 | 201,094 | 188,325 |
Intersegment sales | 4 | 117 | 59 | 179 |
Value-added sales | 92,686 | 83,350 | 171,897 | 161,552 |
Operating profit (loss) | 5,548 | 234 | 5,737 | 1,746 |
Advanced Materials | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 157,044 | 113,557 | 271,780 | 221,677 |
Intersegment sales | 13,247 | 17,429 | 29,694 | 32,605 |
Value-added sales | 62,041 | 46,993 | 109,329 | 89,059 |
Operating profit (loss) | 8,670 | 7,320 | 15,117 | 12,503 |
Precision Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 30,257 | 38,523 | 63,637 | 75,285 |
Intersegment sales | 0 | 0 | 0 | 0 |
Value-added sales | 22,613 | 25,111 | 45,914 | 49,745 |
Operating profit (loss) | 2,314 | 2,272 | 4,532 | 6,371 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment sales | 0 | 0 | 0 | 0 |
Value-added sales | (1,241) | (1,520) | (2,060) | (2,564) |
Operating profit (loss) | $ (6,798) | $ (4,049) | $ (12,232) | $ (7,311) |
Other-net (Detail)
Other-net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency exchange/translation loss (gain) | $ (336) | $ 650 | $ (593) | $ 641 |
Amortization of Intangible Assets | 1,232 | 1,148 | 2,277 | 2,296 |
Metal consignment fees | 2,062 | 1,653 | 3,747 | 3,186 |
Net loss (gain) on disposal of fixed assets | 119 | 25 | 147 | (695) |
Other items | 127 | 445 | 444 | 379 |
Total | $ 3,204 | $ 3,921 | $ 6,022 | $ 5,807 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 695 | $ 0 | $ 1,249 | $ 0 |
Facility Closing | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 117 | 0 | 117 | 0 |
Employee Severance | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 578 | $ 0 | $ 1,132 | $ 0 |
Restructuring Textual (Details)
Restructuring Textual (Details) $ in Millions | Jun. 30, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Costs | $ 0.3 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date Percent | 500.00% |
Performance Alloys and Composites | |
Restructuring Cost and Reserve [Line Items] | |
Number of employees severed | 12 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Tax Credit Carryforward [Line Items] | ||||
Income tax (benefit) expense | $ 1,726,000 | $ (284,000) | $ 1,603,000 | $ 1,465,000 |
Effective tax rate | 19.10% | (5.40%) | 13.40% | 11.80% |
Discrete tax benefit | $ 100,000 | $ 900,000 | $ 800,000 | $ 800,000 |
Officer compensation [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Discrete tax benefit | 400,000 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Discrete tax benefit | $ 82,000 | $ 374,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Numerator For Basic And Diluted EPS: | ||||
Net income | $ 7,313 | $ 5,549 | $ 10,363 | $ 10,917 |
Denominator for basic EPS: | ||||
Weighted-average shares outstanding | 20,012 | 20,015 | 19,991 | 20,016 |
Effect of dilutive securities: | ||||
Diluted potential common shares (in shares) | 335 | 199 | 357 | 204 |
Denominator for diluted EPS: | ||||
Adjusted weighted-average shares outstanding | 20,347 | 20,214 | 20,348 | 20,220 |
Basic EPS (in usd per share) | $ 0.37 | $ 0.28 | $ 0.52 | $ 0.55 |
Diluted EPS (in usd per share) | $ 0.36 | $ 0.27 | $ 0.51 | $ 0.54 |
Performance Shares | ||||
Effect of dilutive securities: | ||||
Dilutive effect of share-based compensation (in shares) | 108 | 61 | 103 | 51 |
Restricted Stock Units (RSUs) | ||||
Effect of dilutive securities: | ||||
Dilutive effect of share-based compensation (in shares) | 102 | 75 | 102 | 90 |
Stock Appreciation Rights (SARs) | ||||
Effect of dilutive securities: | ||||
Dilutive effect of share-based compensation (in shares) | 125 | 63 | 152 | 63 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Stock Appreciation Rights (SARs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock appreciation rights excluded from diluted EPS calculation | 31,835 | 1,018,778 | 67,761 | 1,018,778 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Principally average cost: | ||
Raw materials and supplies | $ 41,222 | $ 36,233 |
Work in process | 178,063 | 169,327 |
Finished goods | 39,858 | 38,147 |
Subtotal | 259,143 | 243,707 |
Less: LIFO reserve balance | 43,156 | 42,842 |
Inventories | $ 215,987 | $ 200,865 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Inventory Disclosure [Abstract] | ||||
LIFO liquidation effect | $ 0.2 | $ 0.5 | $ 0.2 | $ 3.2 |
Pensions and Other Post-emplo47
Pensions and Other Post-employment Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 2,070 | $ 1,946 | $ 4,082 | $ 3,891 |
Interest cost | 2,370 | 2,595 | 4,726 | 5,190 |
Expected return on plan assets | (3,671) | (3,488) | (7,329) | (6,976) |
Amortization of prior service benefit | (73) | (115) | (194) | (230) |
Amortization of net loss | 1,611 | 1,430 | 3,198 | 2,861 |
Net periodic benefit cost (benefit) | 2,307 | 2,368 | 4,483 | 4,736 |
Other Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 23 | 25 | 46 | 51 |
Interest cost | 99 | 141 | 198 | 282 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service benefit | (374) | (374) | (748) | (748) |
Amortization of net loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (benefit) | $ (252) | $ (208) | $ (504) | $ (415) |
Pensions and Other Post-emplo48
Pensions and Other Post-employment Benefits (Detail 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jul. 01, 2016 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
ExpectedReductioninService&InterestCost | $ 200 | $ 500 | ||
Other Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Domestic defined benefit pension plan | $ 4,000 | $ 8,000 | ||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
ExpectedReductioninService&InterestCost | $ 1,000 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | $ (83,922) | $ (76,625) | $ (83,922) | $ (76,625) | $ (84,782) | $ (86,181) | $ (78,769) | $ (80,705) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 39 | 1,265 | 732 | 1,006 | ||||
Amounts reclassified from accumulated other comprehensive income | 1,115 | 1,398 | 2,007 | 2,487 | ||||
Net current period other comprehensive income (loss) before tax | 1,154 | 2,663 | 2,739 | 3,493 | ||||
Deferred taxes on current period activity | 294 | 519 | 480 | (587) | ||||
Other comprehensive income | 860 | 2,144 | 2,259 | 4,080 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | 1,202 | 958 | 1,202 | 958 | 1,376 | 1,837 | 656 | 1,579 |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | (236) | 98 | (646) | (1,445) | ||||
Amounts reclassified from accumulated other comprehensive income | (41) | 382 | (302) | 457 | ||||
Net current period other comprehensive income (loss) before tax | (277) | 480 | (948) | (988) | ||||
Deferred taxes on current period activity | (103) | 178 | (313) | (367) | ||||
Other comprehensive income | (174) | 302 | (635) | (621) | ||||
Pension and Post Employment Benefits [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | (80,842) | (74,546) | (80,842) | (74,546) | (81,601) | (82,358) | (75,221) | (76,796) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | 1,156 | 1,016 | 2,309 | 2,030 | ||||
Net current period other comprehensive income (loss) before tax | 1,156 | 1,016 | 2,309 | 2,030 | ||||
Deferred taxes on current period activity | 397 | 341 | 793 | (220) | ||||
Other comprehensive income | 759 | 675 | 1,516 | 2,250 | ||||
Foreign Currency Translation [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | (4,282) | (3,037) | (4,282) | (3,037) | (4,557) | (5,660) | (4,204) | (5,488) |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 275 | 1,167 | 1,378 | 2,451 | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||||
Net current period other comprehensive income (loss) before tax | 275 | 1,167 | 1,378 | 2,451 | ||||
Deferred taxes on current period activity | 0 | 0 | 0 | 0 | ||||
Other comprehensive income | 275 | 1,167 | 1,378 | 2,451 | ||||
Forward Contract | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | 1,109 | 958 | 1,109 | 958 | 1,476 | 1,837 | 656 | 1,579 |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | (629) | 98 | (881) | (1,445) | ||||
Amounts reclassified from accumulated other comprehensive income | 47 | 382 | (214) | 457 | ||||
Net current period other comprehensive income (loss) before tax | (582) | 480 | (1,095) | (988) | ||||
Deferred taxes on current period activity | (215) | 178 | (367) | (367) | ||||
Other comprehensive income | (367) | 302 | (728) | (621) | ||||
Precious Metal Contracts [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Rollward] | ||||||||
Accumulated other comprehensive loss | 93 | 0 | 93 | 0 | $ (100) | $ 0 | $ 0 | $ 0 |
Activity | ||||||||
Other comprehensive income (loss) before reclassifications | 393 | 0 | 235 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | (88) | 0 | (88) | 0 | ||||
Net current period other comprehensive income (loss) before tax | 305 | 0 | 147 | 0 | ||||
Deferred taxes on current period activity | 112 | 0 | 54 | 0 | ||||
Other comprehensive income | $ 193 | $ 0 | $ 93 | $ 0 |
Stock-based Compensation Expe50
Stock-based Compensation Expense (Detail) | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.92% |
Dividend yield | 1.10% |
Volatility | 34.00% |
Expected term (in years) | 5 years 7 months |
Stock-based Compensation Expe51
Stock-based Compensation Expense Textual (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2.4 | $ 1.1 | $ 4.7 | $ 2.3 |
Unearned Compensation | $ 6.3 | $ 6.3 | ||
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted in period | 97,015 | |||
Grant date fair value per unit (in usd per share) | $ 10.89 | |||
Weighted average exercise price on SARs granted in period | $ 35.26 | |||
Stock Settled Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted in period | 62,185 | |||
Grant date fair value per unit (in usd per share) | $ 34.95 | |||
Cash Settled Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted in period | 32,466 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock Settled Performance Based Restricted Stock Units (PRSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value per unit (in usd per share) | $ 30.28 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years |
Fair Value of Financial Instr52
Fair Value of Financial Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Assets Fair Value Disclosure | $ 2,338 | $ 2,425 |
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 3,185 | 1,735 |
Directors Deferred Compensation Investments Liabilities | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 2,075 | 1,734 |
Foreign Currency Forward Contract | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 1,066 | 1 |
Precious Metal Swaps | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 44 | 0 |
Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 2,075 | 1,734 |
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 2,075 | 1,734 |
Fair Value, Inputs, Level 1 | Directors Deferred Compensation Investments Liabilities | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 2,075 | 1,734 |
Fair Value, Inputs, Level 1 | Foreign Currency Forward Contract | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Precious Metal Swaps | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 263 | 691 |
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 1,110 | 1 |
Fair Value, Inputs, Level 2 | Directors Deferred Compensation Investments Liabilities | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Foreign Currency Forward Contract | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 1,066 | 1 |
Fair Value, Inputs, Level 2 | Precious Metal Swaps | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 44 | 0 |
Fair Value, Inputs, Level 3 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 0 | 0 |
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Directors Deferred Compensation Investments Liabilities | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Currency Forward Contract | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Precious Metal Swaps | ||
Financial Liabilities | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Directors Deferred Compensation Investments Assets | ||
Financial Assets | ||
Assets Fair Value Disclosure | 2,075 | 1,734 |
Directors Deferred Compensation Investments Assets | Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 2,075 | 1,734 |
Directors Deferred Compensation Investments Assets | Fair Value, Inputs, Level 2 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 0 | 0 |
Directors Deferred Compensation Investments Assets | Fair Value, Inputs, Level 3 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 0 | 0 |
Foreign Currency Forward Contract | ||
Financial Assets | ||
Assets Fair Value Disclosure | 72 | 691 |
Foreign Currency Forward Contract | Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 0 | 0 |
Foreign Currency Forward Contract | Fair Value, Inputs, Level 2 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 72 | 691 |
Foreign Currency Forward Contract | Fair Value, Inputs, Level 3 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 0 | 0 |
Precious Metal Swaps | ||
Financial Assets | ||
Assets Fair Value Disclosure | 191 | 0 |
Precious Metal Swaps | Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 0 | 0 |
Precious Metal Swaps | Fair Value, Inputs, Level 2 | ||
Financial Assets | ||
Assets Fair Value Disclosure | 191 | 0 |
Precious Metal Swaps | Fair Value, Inputs, Level 3 | ||
Financial Assets | ||
Assets Fair Value Disclosure | $ 0 | $ 0 |
Derivative Instruments and He53
Derivative Instruments and Hedging Activity (Details) - Euro Member Countries, Euro - Not Designated as Hedging Instrument [Member] - Other Current Liabilities [Member] - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liability, Notional Amount | $ 12,223 | $ 0 |
Derivative Liability, Fair Value, Gross Liability | $ (590) | $ 0 |
Derivative Instruments and He54
Derivative Instruments and Hedging Activity (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 0.5 | $ 0.6 |
Derivative Instruments and He55
Derivative Instruments and Hedging Activity (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 25,389 | $ 9,448 |
Derivative, Fair Value, Net | (257) | 690 |
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 8,767 | 8,911 |
Derivative Asset, Fair Value, Gross Asset | 197 | 691 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Precious Metal Swaps | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 6,402 | 0 |
Derivative Asset, Fair Value, Gross Asset | 125 | 0 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 3,335 | 0 |
Derivative Asset, Fair Value, Gross Asset | 66 | 0 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | Precious Metal Swaps | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 3,335 | 0 |
Derivative Asset, Fair Value, Gross Asset | 66 | 0 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 13,099 | 537 |
Derivative Liability, Fair Value, Gross Liability | 518 | 1 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Precious Metal Swaps | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 2,576 | 0 |
Derivative Liability, Fair Value, Gross Liability | (42) | 0 |
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Precious Metal Swaps | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 188 | 0 |
Derivative Liability, Fair Value, Gross Liability | (2) | 0 |
Japan, Yen | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 1,450 | 2,418 |
Derivative Asset, Fair Value, Gross Asset | 64 | 239 |
Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 915 | 6,493 |
Derivative Asset, Fair Value, Gross Asset | 8 | 452 |
Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 10,523 | 537 |
Derivative Liability, Fair Value, Gross Liability | $ 476 | $ 1 |
Derivative Instruments and He56
Derivative Instruments and Hedging Activity (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 600,000 | $ (1,400,000) |
Contingencies (Detail)
Contingencies (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
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. | |
Undiscounted reserve balance | $ 6.2 | $ 6 |