Materion (MTRN) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Jul. 01, 2022 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 01, 2022
Document Transition Report	false
Entity File Number	001-15885
Entity Registrant Name	MATERION CORPORATION
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-1919973
Entity Address, Address Line One	6070 Parkland Blvd
Entity Address, City or Town	Mayfield Heights
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44124
City Area Code	216
Local Phone Number	486-4200
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	MTRN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	20,523,736
Entity Central Index Key	0001104657
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Income Statement [Abstract]
Net sales	$ 445,295	$ 370,999	$ 894,340	$ 725,385
Cost of sales	357,868	301,418	731,622	589,008
Gross margin	87,427	69,581	162,718	136,377
Selling, general, and administrative expense	42,047	38,060	83,708	74,836
Research and development expense	7,592	6,604	14,666	12,810
Restructuring expense (income)	0	0	1,076	(378)
Other—net	5,928	4,194	11,801	8,668
Operating profit	31,860	20,723	51,467	40,441
Other non-operating income—net	(1,168)	(1,277)	(2,337)	(2,553)
Interest expense—net	4,701	858	8,437	1,619
Income before income taxes	28,327	21,142	45,367	41,375
Income tax expense	5,072	3,274	8,093	6,740
Net income	$ 23,255	$ 17,868	$ 37,274	$ 34,635
Basic earnings per share:
Net income per share of common stock (in dollars per share)	$ 1.13	$ 0.87	$ 1.82	$ 1.70
Diluted earnings per share:
Net income per share of common stock (in dollars per share)	$ 1.12	$ 0.87	$ 1.80	$ 1.68
Weighted-average number of shares of common stock outstanding:
Basic (in shares)	20,517	20,429	20,491	20,402
Diluted (in shares)	20,723	20,651	20,743	20,647

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 23,255	$ 17,868	$ 37,274	$ 34,635
Other comprehensive income (loss):
Foreign currency translation adjustment	(6,343)	3,193	(8,390)	(5,664)
Derivative and hedging activity, net of tax	1,894	(273)	4,164	972
Pension and post-employment benefit adjustment, net of tax	16	83	(224)	247
Other comprehensive income (loss)	(4,433)	3,003	(4,450)	(4,445)
Comprehensive income	$ 18,822	$ 20,871	$ 32,824	$ 30,190

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 32,175	$ 14,462
Accounts receivable, net	222,811	223,553
Inventories, net	422,376	361,115
Prepaid and other current assets	29,606	28,122
Total current assets	706,968	627,252
Deferred income taxes	5,018	5,431
Property, plant, and equipment	1,164,273	1,132,223
Less allowances for depreciation, depletion, and amortization	(739,776)	(723,248)
Property, plant, and equipment, net	424,497	408,975
Operating lease, right-of-use assets	68,045	63,096
Intangible assets, net	148,364	156,736
Other assets	30,228	27,369
Goodwill	319,994	318,620
Total Assets	1,703,114	1,607,479
Current liabilities
Short-term debt	15,333	15,359
Accounts payable	113,708	86,243
Salaries and wages	22,239	37,544
Other liabilities and accrued items	49,148	53,388
Income taxes	1,700	4,205
Unearned revenue	8,097	7,770
Total current liabilities	210,225	204,509
Other long-term liabilities	15,846	14,954
Operating lease liabilities	62,474	57,099
Finance lease liabilities	14,360	16,327
Retirement and post-employment benefits	30,992	33,394
Unearned income	108,126	97,962
Long-term income taxes	1,206	1,190
Deferred income taxes	28,766	27,216
Long-term debt	481,965	434,388
Shareholders’ equity
Serial preferred stock (no par value; 5,000 authorized shares, none issued)	0	0
Common stock (no par value; 60,000 authorized shares, issued shares of 27,148 at both July 1st and December 31st)	281,296	271,978
Retained earnings	725,918	693,756
Common stock in treasury	(218,356)	(209,920)
Accumulated other comprehensive loss	(44,619)	(40,169)
Other equity	4,915	4,795
Total shareholders' equity	749,154	720,440
Total Liabilities and Shareholders’ Equity	$ 1,703,114	$ 1,607,479

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Jul. 01, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Serial preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Serial preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares, issued (in shares)	27,148,000	27,148,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Cash flows from operating activities:
Net income	$ 37,274	$ 34,635
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization	26,070	19,063
Amortization of deferred financing costs in interest expense	780	364
Stock-based compensation expense (non-cash)	3,694	3,512
Deferred income tax expense (benefit)	1,966	367
Changes in assets and liabilities:
Accounts receivable	(2,566)	(13,941)
Inventory	(67,304)	(40,651)
Prepaid and other current assets	(2,462)	(1,718)
Accounts payable and accrued expenses	8,897	28,403
Unearned revenue	(141)	3,246
Interest and taxes payable	(1,765)	2,868
Unearned income due to customer prepayments	13,059	8,043
Other-net	3,913	(126)
Net cash provided by operating activities	21,415	44,065
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment	(37,730)	(57,712)
Proceeds from sale of property, plant, and equipment	105	603
Payments for acquisition, net of cash acquired	(2,971)	0
Net cash used in investing activities	(40,596)	(57,109)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit agreement, net	52,794	22,500
Proceeds from issuance of long-term debt	2,059	0
Repayment of long-term debt	(7,177)	(1,654)
Principal payments under finance lease obligations	(1,334)	(1,512)
Cash dividends paid	(5,112)	(4,791)
Payments of withholding taxes for stock-based compensation awards	(2,812)	(3,021)
Net cash provided by financing activities	38,418	11,522
Effects of exchange rate changes	(1,524)	(11)
Net change in cash and cash equivalents	17,713	(1,533)
Cash and cash equivalents at beginning of period	14,462	25,878
Cash and cash equivalents at end of period	$ 32,175	$ 24,345

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Common Shares Held in Treasury	Retained Earnings	Accumulated Other Comprehensive Loss	Other Equity
Common stock, beginning balance (in shares) at Dec. 31, 2020		20,328
Treasury stock, beginning balance (in shares) at Dec. 31, 2020			(6,820)
Beginning balances at Dec. 31, 2020	$ 655,630	$ 258,642	$ (199,187)	$ 631,058	$ (38,639)	$ 3,756
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,635			34,635
Other comprehensive income (loss)	(4,445)				(4,445)
Cash dividends declared	(4,791)			(4,791)
Stock-based compensation activity (in shares)		152	152
Stock-based compensation activity	3,512	$ 9,474	$ (5,911)	(51)
Payments of withholding taxes for stock-based compensation awards (in shares)		(45)	(45)
Payments of withholding taxes for stock-based compensation awards	(3,021)		$ (3,021)
Directors' deferred compensation (in shares)		3	3
Directors’ deferred compensation	181	$ 89	$ (735)			827
Common stock, ending balance (in shares) at Jul. 02, 2021		20,438
Treasury stock, ending balance (in shares) at Jul. 02, 2021			(6,710)
Ending balances at Jul. 02, 2021	$ 681,701	$ 268,205	$ (208,854)	660,851	(43,084)	4,583
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared (in dollars per share)	$ 0.235
Common stock, beginning balance (in shares) at Apr. 02, 2021		20,414
Treasury stock, beginning balance (in shares) at Apr. 02, 2021			(6,734)
Beginning balances at Apr. 02, 2021	$ 661,336	$ 264,940	$ (206,845)	645,468	(46,087)	3,860
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,868			17,868
Other comprehensive income (loss)	3,003				3,003
Cash dividends declared	(2,453)			(2,453)
Stock-based compensation activity (in shares)		25	25
Stock-based compensation activity	2,039	$ 3,215	$ (1,144)	(32)
Payments of withholding taxes for stock-based compensation awards (in shares)		(2)	(2)
Payments of withholding taxes for stock-based compensation awards	(183)		$ (183)
Directors' deferred compensation (in shares)		1	1
Directors’ deferred compensation	91	$ 50	$ (682)			723
Common stock, ending balance (in shares) at Jul. 02, 2021		20,438
Treasury stock, ending balance (in shares) at Jul. 02, 2021			(6,710)
Ending balances at Jul. 02, 2021	$ 681,701	$ 268,205	$ (208,854)	660,851	(43,084)	4,583
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared (in dollars per share)	$ 0.120
Common stock, beginning balance (in shares) at Dec. 31, 2021		20,448
Treasury stock, beginning balance (in shares) at Dec. 31, 2021			(6,700)
Beginning balances at Dec. 31, 2021	$ 720,440	$ 271,978	$ (209,920)	693,756	(40,169)	4,795
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	37,274			37,274
Other comprehensive income (loss)	(4,450)				(4,450)
Cash dividends declared	(5,112)			(5,112)
Stock-based compensation activity (in shares)		108	108
Stock-based compensation activity	3,694	$ 9,243	$ (5,549)	0
Payments of withholding taxes for stock-based compensation awards (in shares)		(34)	(34)
Payments of withholding taxes for stock-based compensation awards	(2,812)		$ (2,812)
Directors' deferred compensation (in shares)		1	1
Directors’ deferred compensation	120	$ 75	$ (75)			120
Common stock, ending balance (in shares) at Jul. 01, 2022		20,523
Treasury stock, ending balance (in shares) at Jul. 01, 2022			(6,625)
Ending balances at Jul. 01, 2022	$ 749,154	$ 281,296	$ (218,356)	725,918	(44,619)	4,915
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared (in dollars per share)	$ 0.245
Common stock, beginning balance (in shares) at Apr. 01, 2022		20,511
Treasury stock, beginning balance (in shares) at Apr. 01, 2022			(6,637)
Beginning balances at Apr. 01, 2022	$ 730,964	$ 278,589	$ (217,549)	705,255	(40,186)	4,855
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,255			23,255
Other comprehensive income (loss)	(4,433)				(4,433)
Cash dividends declared	(2,592)			(2,592)
Stock-based compensation activity (in shares)		13	13
Stock-based compensation activity	1,995	$ 2,671	$ (676)	0
Payments of withholding taxes for stock-based compensation awards (in shares)		(1)	(1)
Payments of withholding taxes for stock-based compensation awards	(95)		$ (95)
Directors’ deferred compensation	60	$ 36	$ (36)			60
Common stock, ending balance (in shares) at Jul. 01, 2022		20,523
Treasury stock, ending balance (in shares) at Jul. 01, 2022			(6,625)
Ending balances at Jul. 01, 2022	$ 749,154	$ 281,296	$ (218,356)	$ 725,918	$ (44,619)	$ 4,915
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared (in dollars per share)	$ 0.125

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.125	$ 0.120	$ 0.245	$ 0.235

Accounting Policies

Accounting Policies	6 Months Ended
	Jul. 01, 2022
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation: 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. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2021 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 of the consolidated financial statements are the results of a 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 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company has applied this guidance in accounting for the interest rate swap discussed in Note N. Any additional reference rate reform impacts will be accounted for in accordance with ASU 2020-04. New Accounting Guidance Issued and Not Yet Adopted: In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) . ASU 2021-10 is intended to increase transparency related to governmental assistance by requiring entities to disclose the types of government assistance, the entity's accounting for government assistance, and the effect of government assistance on an entity's financial statements. This new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021. The Company is in the process of evaluating the impact of the guidance on its annual disclosures.

Acquisition

Acquisition	6 Months Ended
	Jul. 01, 2022
Business Combinations [Abstract]
Acquisition	Acquisition On November 1, 2021, the Company acquired the industry-leading electronic materials business of H.C. Starck Group GmbH (HCS-Electronic Materials) for a cash purchase price of approximately $398.9 million, on a cash-free, debt-free basis, subject to a customary purchase price adjustment mechanism. During the six months ended July 1, 2022, acquisition-related inventory step-up expense was $7.5 million and classified in Cost of Sales and transaction and integration costs were $2.6 million and classified in Selling, General and Administrative expenses in the accompanying consolidated statements of income. The Company financed the purchase price for the HCS-Electronic Materials acquisition with a new $300 million five-year term loan pursuant to a delayed draw term loan facility executed in October 2021 and $103 million of borrowings under its amended revolving credit facility. The maturity date on the revolving credit facility was also extended to October 2026. The interest rate for the term loan is based on LIBOR plus a tiered credit spread that is indexed to the Company's quarterly leverage ratio. This acquired business operates within the Performance Materials and Electronic Materials segments, and the results of operations are included as of the date of acquisition. The combination of Materion and HCS-Electronic Materials enhances the Company's position as the leading supplier to the high growth semiconductor industry. The fair value estimates of the assets acquired are subject to adjustment during the measurement period (up to one year from the HCS-Electronic Materials Acquisition Date). The primary areas of accounting for the HCS Acquisition that are not yet finalized relate to the fair value of contingencies, income tax accruals, and the impact on residual goodwill. The fair values of these net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While we believe that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, we will evaluate any additional information prior to finalization of the fair value. During the measurement period, we will adjust preliminary valuations assigned to assets and liabilities if new information is obtained about facts and circumstances that existed as of the HCS Acquisition Date that, if known, would have resulted in revised values for these items as of that date. The impact of all changes, if any, that do not qualify as measurement period adjustments will be included in current period earnings. During the period subsequent to the HCS-Electronic Materials acquisition, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period. Additionally, we paid a working capital true-up of approximately $3.0 million during the second quarter of 2022 which increased the total purchase price. The preliminary purchase price allocation for the acquisition including these measurement period adjustments is as follows: (Thousands) Initial Allocation of Consideration Measurement Period Adjustments Updated Allocation Assets: Cash and cash equivalents $ 3,685 $ — $ 3,685 Accounts receivable 28,352 — 28,352 Inventories 70,681 — 70,681 Prepaid and other current assets 660 (355) 305 Property, plant, and equipment 44,681 355 45,036 Operating lease, right-of-use assets 6,120 — 6,120 Intangible assets 107,800 — 107,800 Other long-term assets 4,528 — 4,528 Goodwill 178,181 3,688 181,869 Total assets acquired $ 444,688 $ 3,688 $ 448,376 Liabilities: Accounts payable $ 12,139 $ — $ 12,139 Salaries and wages 2,516 435 2,951 Other liabilities and accrued items 28 — 28 Income taxes 2,183 79 2,262 Other long-term liabilities 5,543 215 5,758 Operating lease liabilities 6,042 — 6,042 Deferred income taxes 20,300 — 20,300 Total liabilities assumed $ 48,751 $ 729 $ 49,480 Net assets acquired $ 395,937 $ 2,959 $ 398,896 Assets acquired and liabilities assumed are recognized at their respective fair values as of the acquisition date. The Company engaged specialists to assist in the valuation of inventories, property, plant, and equipment, and intangible assets. In determining the fair value of the amounts above, inventory is fair valued based on the comparative sales method for work in process and finished goods at the selling price less cost to dispose and remaining manufacturing effort. The remaining working capital accounts' carrying values approximate fair value. For property, plant and equipment and intangible asset values, the Company utilized various forms of the income, cost and market approaches depending on the asset being valued. The Company used a relief from royalty method under the income approach to value its trade names and the developed technology and the multi-period excess earnings method under the income approach to value customer relationships. The significant assumptions used to estimate the fair value of these intangible assets included the discount rate and certain assumptions that form the basis of forecasted future cash flows (including revenue growth rates, royalty rates for trade names and developed technology, and attrition rates for customer relationships). Inputs were generally determined by taking into account independent appraisals and historical data, supplemented by current and anticipated market conditions and are considered Level 3 assets as the assumptions are unobservable inputs developed by the Company. As part of the acquisition, the Company recorded approximately $181.9 million of goodwill allocated between its Electronic Materials and Performance Materials segments based on the relative fair values. Goodwill was calculated as the excess of the purchase price over the estimated fair values of the tangible net assets and intangible assets acquired and primarily attributable to the synergies expected to arise after the acquisition dates. The goodwill is not expected to be deductible for U.S. tax purposes. The following table reports the intangible assets by asset category as of the closing date: (Thousands) Value at Acquisition Useful Life Customer relationships $ 50,200 13 years Technology 35,300 13 years Trade name 22,300 15 years Total $ 107,800 The amounts of revenue and income (loss) before taxes of HCS-Electronic Materials in the second quarter of 2022 consolidated statements are $43.6 million and $7.6 million, respectively. Full year revenue and income before taxes total $86.9 million and $6.0 million, respectively. Income before taxes includes the purchase accounting inventory step-up expense recorded in the first quarter of 2022. Had the HCS-Electronic Materials acquisition occurred as of the beginning of fiscal 2020, the Company's sales and income (loss) before taxes would have been as follows: (Unaudited) Three months ended Six months ended July 2, 2021 July 2, 2021 Net Sales $ 409,202 $ 794,586 Profit income (loss) before taxes $ 22,138 $ 41,135 The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the acquisition occurred on January 1, 2020. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. The transaction accounting adjustments and other adjustments are based on available information and assumptions that the Company’s management believes are reasonable. Such adjustments are estimates and actual experience may differ from expectations. The pro forma income (loss) before taxes for the second quarter ended and six months ended July 2, 2021 includes approximately $4.3 million and $7.2 million, respectively, of additional interest expense related to committed financing to fund the acquisition and acquisition-related intangible asset amortization expense of $2.0 million and $4.0 million, respectively, as if the acquisition occurred on January 1, 2020.

Segment Reporting

Segment Reporting	6 Months Ended
	Jul. 01, 2022
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. The Company believes these names better represent the markets served and the advanced next-generation product solutions provided to our customers. Other than the name changes, there were no changes in the composition or structure of the Company's reportable segments in the first half of 2022. The Company has the following reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Company’s reportable 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 Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes. Electronic 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 Optics 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. Beginning with the first quarter of 2022, the Company began using earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) as the main operating income metric used by management to measure the financial performance of the Company and each segment. The Company made this change because recent acquisitions have resulted in increased purchase accounting amortization expense, which in turn has affected the comparability of results across periods and when compared to other companies. Management believes EBITDA is useful to investors as it better represents the Company's performance excluding the effect of the recent acquisition of significant intangible assets that are now being amortized. EBITDA is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP. The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for the second quarter of 2022 and 2021: (Thousands) Second Quarter 2022 Second Quarter 2021 First Six Months Ended 2022 First Six Months Ended 2021 Net sales: Performance Materials (1) $ 154,889 $ 125,294 $ 304,520 $ 239,437 Electronic Materials (1) 260,971 213,114 531,807 417,758 Precision Optics 29,435 32,591 58,013 68,190 Other — — — — Net sales 445,295 370,999 894,340 725,385 Segment EBITDA: Performance Materials $ 27,229 $ 22,318 $ 52,021 $ 39,110 Electronic Materials 22,337 10,412 34,484 21,342 Precision Optics 3,544 5,547 5,735 13,018 Other (7,191) (5,813) (12,366) (11,413) Total Segment EBITDA 45,919 32,464 79,874 62,057 Income tax expense 5,072 3,274 8,093 6,740 Interest expense - net 4,701 858 8,437 1,619 Depreciation, depletion and amortization 12,891 $ 10,464 $ 26,070 $ 19,063 Net income $ 23,255 $ 17,868 $ 37,274 $ 34,635 (1) Excludes inter-segment sales of $0.2 million for the second quarter of 2022 and $0.5 million for the first six months of 2022 for Performance Materials and $2.7 million for the second quarter of 2022 and $8.2 million for the first six months of 2022 for Electronic Materials. Also excludes inter-segment sales of $3.2 million for the second quarter of 2021 and $5.9 million for the first six months of 2021 for Electronic Materials. Inter-segment sales are eliminated in consolidation. The following table disaggregates revenue for each segment by end market for the second quarter and first six months of 2022 and 2021: (Thousands) Performance Materials Electronic Materials Precision Optics Other Total Second Quarter 2022 End Market Semiconductor $ 2,446 $ 213,742 $ 1,530 $ — $ 217,718 Industrial 41,701 11,957 7,608 — 61,266 Aerospace and defense 27,615 1,284 3,666 — 32,565 Consumer electronics 16,212 280 5,814 — 22,306 Automotive 24,855 1,465 2,708 — 29,028 Energy 10,679 25,361 — — 36,040 Telecom and data center 16,223 21 — — 16,244 Other 15,158 6,861 8,109 — 30,128 Total $ 154,889 $ 260,971 $ 29,435 $ — $ 445,295 Second Quarter 2021 End Market Semiconductor $ 1,806 $ 166,968 $ 563 $ — $ 169,337 Industrial 30,264 10,687 7,634 — 48,585 Aerospace and defense 19,250 1,660 5,597 — 26,507 Consumer electronics 10,722 266 6,964 — 17,952 Automotive 25,766 1,757 2,107 — 29,630 Energy 4,880 24,216 — — 29,096 Telecom and data center 13,025 39 — — 13,064 Other 19,581 7,521 9,726 — 36,828 Total $ 125,294 $ 213,114 $ 32,591 $ — $ 370,999 (Thousands) Performance Materials Electronic Materials Precision Optics Other Total First Six Months 2022 End Market Semiconductor $ 4,246 $ 428,664 $ 2,857 $ — $ 435,767 Industrial 82,520 27,823 16,041 — 126,384 Aerospace and defense 51,299 3,898 8,812 — 64,009 Consumer electronics 29,215 605 11,126 — 40,946 Automotive 47,091 3,122 5,026 — 55,239 Energy 20,778 54,481 — — 75,259 Telecom and data center 32,303 65 — — 32,368 Other 37,068 13,149 14,151 — 64,368 Total $ 304,520 $ 531,807 $ 58,013 $ — $ 894,340 First Six Months 2021 End Market Semiconductor $ 2,803 $ 322,029 $ 1,034 $ — $ 325,866 Industrial 54,294 23,277 15,009 — 92,580 Aerospace and defense 41,092 3,058 12,173 — 56,323 Consumer electronics 20,766 431 16,424 — 37,621 Automotive 49,273 3,426 4,300 — 56,999 Energy 9,017 51,406 — — 60,423 Telecom and data center 24,368 109 — — 24,477 Other 37,824 14,022 19,250 — 71,096 Total $ 239,437 $ 417,758 $ 68,190 $ — $ 725,385

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jul. 01, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue in an amount that reflects the consideration to which it expects to be entitled upon satisfaction of a performance obligation by transferring control over a product to the customer. Control over a product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product. Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at July 1, 2022. Remaining performance obligations include non-cancelable purchase orders and customer contracts. The guidance provides certain practical expedients that limit this requirement. As such, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. After considering the practical expedient at July 1, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $76.3 million. Contract Balances : The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities: (Thousands) July 1, 2022 December 31, 2021 $ change % change Accounts receivable, trade $ 213,221 $ 213,584 $ (363) — % Unbilled receivables 8,916 7,961 955 12 % Unearned revenue 8,097 7,770 327 4 % Accounts receivable, trade represents payments due from customers relating to the transfer of the Company’s products and services. The Company believes that its receivables are collectible and appropriate allowances for doubtful accounts have been recorded. Impairment losses (bad debt) incurred related to our receivables were immaterial during the second quarter of 2022. Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are generally billed and collected within one year. Billings made on contracts are recorded as a reduction of unbilled receivables. Unearned revenue is recorded for consideration received from customers in advance of satisfaction of the related performance obligations. The Company recognized approximately $5.6 million of the December 31, 2021 unearned amounts as revenue during the first six months of 2022. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component because the period between the transfer of a product or service to a customer and when the customer pays for that product or service will be one year or less. The Company does not include extended payment terms in its contracts with customers.

Other-net

Other-net	6 Months Ended
	Jul. 01, 2022
Other Income and Expenses [Abstract]
Other-net	Other-net Other-net for the second quarter and first six months of 2022 and 2021 is summarized as follows: Second Quarter Ended Six Months Ended July 1, July 2, July 1, July 2, (Thousands) 2022 2021 2022 2021 Amortization of intangible assets $ 3,099 $ 1,005 $ 6,230 $ 2,178 Metal consignment fees 2,871 2,464 5,882 4,614 Foreign currency (gain) loss 28 (33) (305) 1,216 Net loss (gain) on disposal of fixed assets 29 24 18 (364) Other items (99) 734 (24) 1,024 Total $ 5,928 $ 4,194 $ 11,801 $ 8,668

Income Taxes

Income Taxes	6 Months Ended
	Jul. 01, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company's effective tax rate for the second quarter of 2022 and 2021 was 17.9% and 15.5%, respectively, and 17.8% and 16.3% in the first six months of 2022 and 2021, respectively. The effective tax rate for each period in 2022 and 2021 was lower than the statutory tax rate primarily due to the impact of percentage depletion, research and development credits and the foreign derived intangible income deduction. The effective tax rate for the first six months of 2022 included a net discrete income tax benefit of $0.4 million, primarily related to excess tax benefits from stock-based compensation awards. The effective tax rate for the first six months of 2021 included a net discrete income tax benefit of $0.5 million, primarily related to excess tax benefits from stock-based compensation awards.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 01, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share (EPS) The following table sets forth the computation of basic and diluted EPS: Second Quarter Ended Six Months Ended July 1, July 2, July 1, July 2, (Thousands, except per share amounts) 2022 2021 2022 2021 Numerator for basic and diluted EPS: Net income $ 23,255 $ 17,868 $ 37,274 $ 34,635 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,517 20,429 20,491 20,402 Effect of dilutive securities: Stock appreciation rights 81 79 86 75 Restricted stock units 82 93 116 108 Performance-based restricted stock units 43 50 50 62 Diluted potential common shares 206 222 252 245 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,723 20,651 20,743 20,647 Basic EPS $ 1.13 $ 0.87 $ 1.82 $ 1.70 Diluted EPS $ 1.12 $ 0.87 $ 1.80 $ 1.68 Adjusted weighted-average shares outstanding - diluted exclude securities totaling 119,744 and 52,709 for the quarters ended July 1, 2022 and July 2, 2021, respectively, and 79,949 and 64,478 for the six months ended July 1, 2022 and July 2, 2021, respectively. These securities are primarily related to restricted stock units and stock appreciation rights with fair market values and exercise prices greater than the average market price of the Company's common shares and were excluded from the dilution calculation as the effect would have been anti-dilutive.

Inventories

Inventories	6 Months Ended
	Jul. 01, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories on the Consolidated Balance Sheets are summarized as follows: July 1, December 31, (Thousands) 2022 2021 Raw materials and supplies $ 115,970 $ 93,518 Work in process 253,012 221,638 Finished goods 53,394 45,959 Inventories, net $ 422,376 $ 361,115

Customer Prepayments

Customer Prepayments	6 Months Ended
	Jul. 01, 2022
Customer Prepayments [Abstract]
Customer Prepayments	Customer Prepayments In 2020, the Company entered into an investment agreement and a master supply agreement with a customer to procure equipment to manufacture product for the customer. The customer provided prepayments to the Company to fund the necessary infrastructure improvements and procure the equipment necessary to supply the customer with the desired product. The Company owns, operates and maintains the equipment that is being used to manufacture product for the customer. Revenue will be recognized as the Company fulfills purchase orders and ships the commercial product to the customer, as product delivery is considered the satisfaction of the performance obligation. Additionally, during the second quarter of 2022, the Company entered into an amendment to the investment agreement with the same customer to procure additional equipment to manufacture product for the customer. As of July 1, 2022, the Company has received approximately $13.1 million in prepayments under the terms of this agreement. As of July 1, 2022 and December 31, 2021, $84.6 million and $72.6 million, respectively, of prepayments are classified as Unearned income on the Consolidated Balance Sheets. The prepayments will remain in Unearned income until commercial purchase orders are received for product serviced out of the equipment, at which time a portion of the purchase order value related to prepayments will be reclassified to Unearned revenue. As of July 1, 2022 $1.0 million of the prepayments are classified as Unearned revenue.

Pensions and Other Post-employm

Pensions and Other Post-employment Benefits	6 Months Ended
	Jul. 01, 2022
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 ended July 1, 2022 and July 2, 2021, respectively, for the pension plans as shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan. Pension Benefits Other Benefits Second Quarter Ended Second Quarter Ended July 1, July 2, July 1, July 2, (Thousands) 2022 2021 2022 2021 Components of net periodic benefit (credit) cost Service cost $ 292 $ 436 $ 20 $ 20 Interest cost 1,213 1,048 39 29 Expected return on plan assets (2,378) (2,474) — — Amortization of prior service (benefit) cost (18) (21) (374) (374) Amortization of net loss (gain) 420 577 (68) (69) Net periodic benefit (credit) cost $ (471) $ (434) $ (383) $ (394) Settlements — — — — Total net benefit (credit) cost $ (471) $ (434) $ (383) $ (394) Pension Benefits Other Benefits Six Months Ended Six Months Ended July 1, July 2, July 1, July 2, (Thousands) 2022 2021 2022 2021 Components of net periodic benefit (credit) cost Service cost $ 610 $ 874 $ 42 $ 40 Interest cost 2,436 2,096 78 58 Expected return on plan assets (4,778) (4,948) — — Amortization of prior service (benefit) cost (38) (42) (748) (748) Amortization of net loss (gain) 850 1,154 (136) (138) Net periodic benefit (credit) cost $ (920) $ (866) $ (764) $ (788) Settlements — — — — Total net benefit (credit) cost $ (920) $ (866) $ (764) $ (788) The Company did not make any contributions to its domestic defined benefit plan in the second quarter or first six months of 2022 or 2021.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jul. 01, 2022
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	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 2022 and 2021 are as follows: Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Interest Rate Precious Metals Copper Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at April 1, 2022 $ 2,451 $ 2,485 $ (246) $ — $ 4,690 $ (39,942) $ (4,934) $ (40,186) Other comprehensive income (loss) before reclassifications 1,117 756 467 — 2,340 — (6,343) (4,003) Amounts reclassified from accumulated other comprehensive income (loss) (110) 238 (8) — 120 (10) — 110 Net current period other comprehensive (loss) income before tax 1,007 994 459 — 2,460 (10) (6,343) (3,893) Deferred taxes 232 229 105 — 566 (26) — 540 Net current period other comprehensive (loss) income after tax 775 765 354 — 1,894 16 (6,343) (4,433) Balance at July 1, 2022 $ 3,226 $ 3,250 $ 108 $ — $ 6,584 $ (39,926) $ (11,277) $ (44,619) Balance at April 2, 2021 $ 1,462 $ — $ 320 $ 280 $ 2,062 $ (43,309) $ (4,840) $ (46,087) Other comprehensive (loss) income before reclassifications 183 — (239) 1,145 1,089 — 3,193 4,282 Amounts reclassified from accumulated other comprehensive income (loss) — — 65 (1,507) (1,442) 77 — (1,365) Net current period other comprehensive (loss) income before tax 183 — (174) (362) (353) 77 3,193 2,917 Deferred taxes 42 (40) (82) (80) (6) — (86) Net current period other comprehensive (loss) income after tax 141 — (134) (280) (273) 83 3,193 3,003 Balance at July 2, 2021 $ 1,603 $ — $ 186 $ — $ 1,789 $ (43,226) $ (1,647) $ (43,084) Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Interest Rate Precious Metals Copper Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at December 31, 2021 $ 2,348 $ — $ 72 $ — $ 2,420 $ (39,702) $ (2,887) $ (40,169) Other comprehensive income (loss) before reclassifications 1,270 3,868 (53) — 5,085 — (8,390) (3,305) Amounts reclassified from accumulated other comprehensive income (loss) (130) 353 99 — 322 (1,011) — (689) Net current period other comprehensive (loss) income before tax 1,140 4,221 46 — 5,407 (1,011) (8,390) (3,994) Deferred taxes 262 971 10 — 1,243 (787) — 456 Net current period other comprehensive (loss) income after tax 878 3,250 36 — 4,164 (224) (8,390) (4,450) Balance at July 1, 2022 $ 3,226 $ 3,250 $ 108 $ — $ 6,584 $ (39,926) $ (11,277) $ (44,619) Balance at December 31, 2020 $ 519 $ — $ (170) $ 468 $ 817 $ (43,473) $ 4,017 $ (38,639) Other comprehensive (loss) income before reclassifications 1,268 — 502 2,436 4,206 — (5,664) (1,458) Amounts reclassified from accumulated other comprehensive income (loss) 140 — (39) (3,041) (2,940) 234 — (2,706) Net current period other comprehensive (loss) income before tax 1,408 — 463 (605) 1,266 234 (5,664) (4,164) Deferred taxes 324 — 107 (137) 294 (13) — 281 Net current period other comprehensive (loss) income after tax 1,084 — 356 (468) 972 247 (5,664) (4,445) Balance at July 2, 2021 $ 1,603 $ — $ 186 $ — $ 1,789 $ (43,226) $ (1,647) $ (43,084) Reclassifications from accumulated other comprehensive income (loss) of gains and losses on foreign currency cash flow hedges are recorded in Net sales in the Consolidated Statements of Income. Reclassifications from accumulated other comprehensive income (loss) of gains and losses on precious metal and copper cash flow hedges are recorded in Cost of sales in the Consolidated Statements of Income. Reclassifications from accumulated other comprehensive income (loss) of gains and losses on the interest rate cash flow hedge is recorded in Interest expense in the Consolidated Statements of Income. Refer to Note N for additional details on cash flow hedges.

Stock-based Compensation Expens

Stock-based Compensation Expense	6 Months Ended
	Jul. 01, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation Expense	Stock-based Compensation Expense Stock-based compensation expense, which includes awards settled in shares and in cash, was $2.0 million and $3.8 million in the second quarter and first six months of 2022, respectively, compared to $2.2 million and $3.8 million, respectively, in the same periods of 2021. The Company granted 45,016 stock appreciation rights (SARs) to certain employees during the first six months of 2022. The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the six months ended July 1, 2022 were $80.85 and $25.87, 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 1.56 % Dividend yield 0.59 % Volatility 38.5 % Expected term (in years) 4.4 The Company granted 59,599 stock-settled restricted stock units (RSUs) to certain employees during the first six months of 2022. 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 $80.87 for stock-settled RSUs granted to employees during the six months ended July 1, 2022. RSUs are generally expensed over the vesting period of three years for employees. The Company granted stock-settled performance-based restricted stock units (PRSUs) to certain employees in the first six months of 2022. The weighted-average fair value of the stock-settled PRSUs was $97.79 per share and will be expensed over the vesting period of three years. The final payout to the employees for all PRSUs will be based upon the Company’s return on invested capital and its total return to shareholders over the vesting period relative to a peer group’s performance over the same period.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jul. 01, 2022
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 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 July 1, 2022 and December 31, 2021: (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices Significant Significant 2022 2021 2022 2021 2022 2021 2022 2021 Financial Assets Deferred compensation investments $ 2,899 $ 4,426 $ 2,899 $ 4,426 $ — $ — $ — $ — Foreign currency forward contracts 2,942 3,368 — — 2,942 3,368 — — Interest rate swap 4,221 — — — 4,221 — — — Precious metal swaps 214 116 — — 214 116 — — Total $ 10,276 $ 7,910 $ 2,899 $ 4,426 $ 7,377 $ 3,484 $ — $ — Financial Liabilities Deferred compensation liability $ 2,899 $ 4,426 $ 2,899 $ 4,426 $ — $ — $ — $ — Foreign currency forward contracts 627 136 — — 627 136 — — Precious metal swaps 76 24 — — 76 24 — — Total $ 3,602 $ 4,586 $ 2,899 $ 4,426 $ 703 $ 160 $ — $ — 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, metals, and interest rates. The carrying values of the other working capital items and debt in the Consolidated Balance Sheets approximate fair values as of July 1, 2022 and December 31, 2021. The Company's deferred compensation investments and liabilities are based on the fair value of the investments corresponding to the employees’ investment selections, primarily in mutual funds, based on quoted prices in active markets for identical assets. Deferred compensation investments are primarily presented in Other assets. Deferred compensation liabilities are primarily presented in Other long-term liabilities.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activity	6 Months Ended
	Jul. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activity	Derivative Instruments and Hedging Activity The Company uses derivative contracts to hedge exposure to movements in interest rates associated with borrowings, foreign currency exposures, and precious metal and copper exposures. The objectives and strategies for using derivatives in these areas are as follows: Interest Rate. On March 4, 2022, the Company entered into a $100.0 million interest rate swap to hedge the interest rate risk on the Credit Agreement described in Note P. The swap hedges the change in 1-month LIBOR from March 4, 2022 to November 2, 2026. The purpose of this hedge is to manage the risk of changes in the monthly interest payments attributable to changes in the benchmark interest rate. 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, the 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 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 nature of instruments to use to hedge exposures. 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. Foreign currency contracts are typically layered in at different times for a specified exposure period in order to minimize the impact of market 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 product containing precious metal is fabricated and delivered to the customer, the metal content is purchased out of consignment based on the current market price. The price paid by the Company for the precious metal forms the basis for the price charged to the customer for the metal content in the product. 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 consignment fees based upon the value of the metal as it fluctuates while on consignment. Each financial institution retains title to its consigned precious metal until it is purchased by the Company, and it is the Company’s typical practice to purchase metal out of consignment only after a product containing that metal has been purchased by one of our customers. In certain instances, a customer may want to fix 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 out of consignment 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 refined and purchased, thereby reducing the exposure to adverse movements in the price of the metal. The Company may also enter into hedges to mitigate the risk relating to the prices of the metals that we process or refine. 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 in these instances. 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 infrequent and, when made 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 paid when the metal is transferred back to the consignment line, thereby limiting any price exposure during the time when the metal was owned by the Company. The Company will only enter into a derivative contract if there is an underlying identified exposure. Contracts are typically held to maturity. The Company does not engage in derivative trading activities and does not use derivatives for speculative purposes. The Company only uses hedge contracts that are denominated in the same currency or metal as the underlying exposure. All derivatives are recorded on the balance sheet at fair value. If a 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) and reclassified into income in the same period or periods during which the hedged transaction affects 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 derivative assets and liabilities are classified as short-term or long-term depending upon the contract maturity date. The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments (on a gross basis) and the balance sheet classification as of July 1, 2022 and December 31, 2021: July 1, 2022 December 31, 2021 (Thousands) Notional Fair Notional Fair Foreign currency forward contracts Prepaid and other current assets $ 14,020 $ 533 $ 55,063 $ 2,132 Other liabilities and accrued items 13,466 587 9,425 128 These outstanding foreign currency derivatives were related to balance sheet hedges and intercompany loans. Other-net included less than $0.1 million of foreign currency losses in the second quarter of 2022 and $0.7 million of foreign currency gains related to derivatives in the first six months of 2022, compared to $0.4 million of foreign currency losses and $1.2 million of foreign currency gains in the second quarter and first six months of 2021, respectively. The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of July 1, 2022 and December 31, 2021: July 1, 2022 Fair Value (Thousands) Notional Prepaid and other current assets Other assets Other liabilities and accrued items Other long-term liabilities Foreign currency forward contracts - yen $ 4,091 $ 453 $ 34 $ 40 $ — Foreign currency forward contracts - euro 31,827 1,827 95 — — Precious metal swaps 6,802 199 15 76 — Interest rate swap 100,000 1,329 2,892 — — Total $ 142,720 $ 3,808 $ 3,036 $ 116 $ — December 31, 2021 Fair Value Notional Prepaid and other current assets Other assets Other liabilities and accrued items Other long-term liabilities Foreign currency forward contracts - yen $ 3,907 $ 131 $ 2 $ — $ — Foreign currency forward contracts - euro 28,412 1,102 — — 8 Precious metal swaps 6,256 116 — 24 — Total $ 38,575 $ 1,349 $ 2 $ 24 $ 8 All of the contracts summarized above were designated and effective as cash flow hedges. We expect to reclassify $3.7 million of net gains into earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. At July 1, 2022, the maximum term of derivative instruments that hedge forecasted transactions was approximately four years. Refer to Note K for further details related to OCI. The following table summarizes the amounts reclassified from accumulated other comprehensive income relating to the Company’s outstanding derivatives designated as cash flow hedges and associated income statement classification as of the second quarter and first six months of 2022 and 2021: Second Quarter Ended (Thousands) July 1, 2022 July 2, 2021 Hedging relationship Line item Foreign currency forward contracts Net sales $ (110) $ — Precious metal swaps Cost of sales (8) 65 Interest rate swap Interest expense - net 238 — Copper swaps Cost of sales — (1,507) Total $ 120 $ (1,442) Six Months Ended (Thousands) July 1, 2022 July 2, 2021 Hedging relationship Line item Foreign currency forward contracts Net sales $ (130) $ 140 Precious metal swaps Cost of sales 99 (39) Interest rate swap Interest expense - net 353 — Copper swaps Cost of sales — (3,041) Total $ 322 $ (2,940)

Contingencies

Contingencies	6 Months Ended
	Jul. 01, 2022
Loss Contingency [Abstract]
Contingencies	Contingencies Legal Proceedings . For general information regarding legal proceedings relating to Chronic Beryllium Disease Claims, refer to Note T "Contingencies and Commitments" in the Company's 2021 Annual Report on Form 10-K. One beryllium case was outstanding as of July 1, 2022. The Company does not expect the resolution of this open matter to have a material impact on the consolidated financial statements. As previously reported, a settlement agreement had been reached in one case, and the case was dismissed during the second quarter. 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. On October 14, 2020, Garett Lucyk, et al. v. Materion Brush Inc., et. al. , case number 20CV0234, a wage and hour purported collective and class action, was filed in the Northern District of Ohio against the Company and its subsidiary, Materion Brush Inc. (collectively, the Company). Plaintiff, a former hourly production employee at the Company's Elmore, Ohio facility, alleges, among other things, that he and other similarly situated employees nationwide are not paid for all time they spend donning and doffing personal protective equipment in violation of the Fair Labor Standards Act and Ohio law. Plaintiff filed a motion for conditional certification, which the Company opposed. The motion has been fully briefed, and the parties are awaiting a decision from the court. The Company believes that it has substantive defenses and intends to vigorously defend this suit, absent a negotiated resolution. 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 $4.3 million and $4.8 million at July 1, 2022 and December 31, 2021, respectively, and is included in Other liabilities and accrued items and Other long-term liabilities on the Consolidated Balance Sheet. Environmental projects tend to be long-term, and the final actual remediation costs may differ from the amounts currently recorded.

Debt

Debt	6 Months Ended
	Jul. 01, 2022
Debt Disclosure [Abstract]
Debt	Debt (Thousands) July 1, 2022 December 31, 2021 Borrowings under Credit Agreement $ 205,091 $ 152,296 Borrowings under the Term Loan Facility 292,500 300,000 Foreign debt 4,012 2,252 Total debt outstanding 501,603 454,548 Current portion of long-term debt (15,333) (15,359) Gross long-term debt 486,270 439,189 Unamortized deferred financing fees (4,305) (4,801) Long-term debt $ 481,965 $ 434,388 As of July 1, 2022 and December 31, 2021, the Company had $205.1 million outstanding at an average interest rate of 3.56% and $152.3 million outstanding at an average interest rate of 2.12%, respectively, under its revolving credit facility. The available borrowing capacity under the revolving credit facility as of July 1, 2022 was $124.0 million. The Company has the option to repay or borrow additional funds under the revolving credit facility until the maturity date in 2026. The amended and restated credit agreement governing the revolving credit facility (Credit Agreement) includes covenants subject to a maximum leverage ratio and a minimum fixed charge coverage ratio. We were in compliance with all of our debt covenants as of July 1, 2022. The balance outstanding on the term loan facility as of July 1, 2022 and December 31, 2021 wa s $292.5 million and $300.0 million, respectively. At July 1, 2022 and December 31, 2021, there was $46.4 million and $46.3 million, respectively, outstanding against the letters of credit sub-facility.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jul. 01, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: 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.
Business Combinations	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 of the consolidated financial statements are the results of a 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 and New Accounting Guidance Issued and Not Yet Adopted	New Pronouncements Adopted: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company has applied this guidance in accounting for the interest rate swap discussed in Note N. Any additional reference rate reform impacts will be accounted for in accordance with ASU 2020-04. New Accounting Guidance Issued and Not Yet Adopted: In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) . ASU 2021-10 is intended to increase transparency related to governmental assistance by requiring entities to disclose the types of government assistance, the entity's accounting for government assistance, and the effect of government assistance on an entity's financial statements. This new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021. The Company is in the process of evaluating the impact of the guidance on its annual disclosures.
Revenue Recognition	Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue in an amount that reflects the consideration to which it expects to be entitled upon satisfaction of a performance obligation by transferring control over a product to the customer. Control over a product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product. Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification 606, Revenue from Contracts with Customers,

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Jul. 01, 2022
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The preliminary purchase price allocation for the acquisition including these measurement period adjustments is as follows: (Thousands) Initial Allocation of Consideration Measurement Period Adjustments Updated Allocation Assets: Cash and cash equivalents $ 3,685 $ — $ 3,685 Accounts receivable 28,352 — 28,352 Inventories 70,681 — 70,681 Prepaid and other current assets 660 (355) 305 Property, plant, and equipment 44,681 355 45,036 Operating lease, right-of-use assets 6,120 — 6,120 Intangible assets 107,800 — 107,800 Other long-term assets 4,528 — 4,528 Goodwill 178,181 3,688 181,869 Total assets acquired $ 444,688 $ 3,688 $ 448,376 Liabilities: Accounts payable $ 12,139 $ — $ 12,139 Salaries and wages 2,516 435 2,951 Other liabilities and accrued items 28 — 28 Income taxes 2,183 79 2,262 Other long-term liabilities 5,543 215 5,758 Operating lease liabilities 6,042 — 6,042 Deferred income taxes 20,300 — 20,300 Total liabilities assumed $ 48,751 $ 729 $ 49,480 Net assets acquired $ 395,937 $ 2,959 $ 398,896
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	The following table reports the intangible assets by asset category as of the closing date: (Thousands) Value at Acquisition Useful Life Customer relationships $ 50,200 13 years Technology 35,300 13 years Trade name 22,300 15 years Total $ 107,800
Business Acquisition, Pro Forma Information	Materials acquisition occurred as of the beginning of fiscal 2020, the Company's sales and income (loss) before taxes would have been as follows: (Unaudited) Three months ended Six months ended July 2, 2021 July 2, 2021 Net Sales $ 409,202 $ 794,586 Profit income (loss) before taxes $ 22,138 $ 41,135

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jul. 01, 2022
Segment Reporting [Abstract]
Segment Reporting	The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for the second quarter of 2022 and 2021: (Thousands) Second Quarter 2022 Second Quarter 2021 First Six Months Ended 2022 First Six Months Ended 2021 Net sales: Performance Materials (1) $ 154,889 $ 125,294 $ 304,520 $ 239,437 Electronic Materials (1) 260,971 213,114 531,807 417,758 Precision Optics 29,435 32,591 58,013 68,190 Other — — — — Net sales 445,295 370,999 894,340 725,385 Segment EBITDA: Performance Materials $ 27,229 $ 22,318 $ 52,021 $ 39,110 Electronic Materials 22,337 10,412 34,484 21,342 Precision Optics 3,544 5,547 5,735 13,018 Other (7,191) (5,813) (12,366) (11,413) Total Segment EBITDA 45,919 32,464 79,874 62,057 Income tax expense 5,072 3,274 8,093 6,740 Interest expense - net 4,701 858 8,437 1,619 Depreciation, depletion and amortization 12,891 $ 10,464 $ 26,070 $ 19,063 Net income $ 23,255 $ 17,868 $ 37,274 $ 34,635 (1) Excludes inter-segment sales of $0.2 million for the second quarter of 2022 and $0.5 million for the first six months of 2022 for Performance Materials and $2.7 million for the second quarter of 2022 and $8.2 million for the first six months of 2022 for Electronic Materials. Also excludes inter-segment sales of $3.2 million for the second quarter of 2021 and $5.9 million for the first six months of 2021 for Electronic Materials. Inter-segment sales are eliminated in consolidation.
Disaggregation of Revenue	The following table disaggregates revenue for each segment by end market for the second quarter and first six months of 2022 and 2021: (Thousands) Performance Materials Electronic Materials Precision Optics Other Total Second Quarter 2022 End Market Semiconductor $ 2,446 $ 213,742 $ 1,530 $ — $ 217,718 Industrial 41,701 11,957 7,608 — 61,266 Aerospace and defense 27,615 1,284 3,666 — 32,565 Consumer electronics 16,212 280 5,814 — 22,306 Automotive 24,855 1,465 2,708 — 29,028 Energy 10,679 25,361 — — 36,040 Telecom and data center 16,223 21 — — 16,244 Other 15,158 6,861 8,109 — 30,128 Total $ 154,889 $ 260,971 $ 29,435 $ — $ 445,295 Second Quarter 2021 End Market Semiconductor $ 1,806 $ 166,968 $ 563 $ — $ 169,337 Industrial 30,264 10,687 7,634 — 48,585 Aerospace and defense 19,250 1,660 5,597 — 26,507 Consumer electronics 10,722 266 6,964 — 17,952 Automotive 25,766 1,757 2,107 — 29,630 Energy 4,880 24,216 — — 29,096 Telecom and data center 13,025 39 — — 13,064 Other 19,581 7,521 9,726 — 36,828 Total $ 125,294 $ 213,114 $ 32,591 $ — $ 370,999 (Thousands) Performance Materials Electronic Materials Precision Optics Other Total First Six Months 2022 End Market Semiconductor $ 4,246 $ 428,664 $ 2,857 $ — $ 435,767 Industrial 82,520 27,823 16,041 — 126,384 Aerospace and defense 51,299 3,898 8,812 — 64,009 Consumer electronics 29,215 605 11,126 — 40,946 Automotive 47,091 3,122 5,026 — 55,239 Energy 20,778 54,481 — — 75,259 Telecom and data center 32,303 65 — — 32,368 Other 37,068 13,149 14,151 — 64,368 Total $ 304,520 $ 531,807 $ 58,013 $ — $ 894,340 First Six Months 2021 End Market Semiconductor $ 2,803 $ 322,029 $ 1,034 $ — $ 325,866 Industrial 54,294 23,277 15,009 — 92,580 Aerospace and defense 41,092 3,058 12,173 — 56,323 Consumer electronics 20,766 431 16,424 — 37,621 Automotive 49,273 3,426 4,300 — 56,999 Energy 9,017 51,406 — — 60,423 Telecom and data center 24,368 109 — — 24,477 Other 37,824 14,022 19,250 — 71,096 Total $ 239,437 $ 417,758 $ 68,190 $ — $ 725,385

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jul. 01, 2022
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	Contract Balances : The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities: (Thousands) July 1, 2022 December 31, 2021 $ change % change Accounts receivable, trade $ 213,221 $ 213,584 $ (363) — % Unbilled receivables 8,916 7,961 955 12 % Unearned revenue 8,097 7,770 327 4 %

Other-net (Tables)

Other-net (Tables)	6 Months Ended
	Jul. 01, 2022
Other Income and Expenses [Abstract]
Summary of Other-Net Expense	Other-net for the second quarter and first six months of 2022 and 2021 is summarized as follows: Second Quarter Ended Six Months Ended July 1, July 2, July 1, July 2, (Thousands) 2022 2021 2022 2021 Amortization of intangible assets $ 3,099 $ 1,005 $ 6,230 $ 2,178 Metal consignment fees 2,871 2,464 5,882 4,614 Foreign currency (gain) loss 28 (33) (305) 1,216 Net loss (gain) on disposal of fixed assets 29 24 18 (364) Other items (99) 734 (24) 1,024 Total $ 5,928 $ 4,194 $ 11,801 $ 8,668

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 01, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted EPS: Second Quarter Ended Six Months Ended July 1, July 2, July 1, July 2, (Thousands, except per share amounts) 2022 2021 2022 2021 Numerator for basic and diluted EPS: Net income $ 23,255 $ 17,868 $ 37,274 $ 34,635 Denominator: Denominator for basic EPS: Weighted-average shares outstanding 20,517 20,429 20,491 20,402 Effect of dilutive securities: Stock appreciation rights 81 79 86 75 Restricted stock units 82 93 116 108 Performance-based restricted stock units 43 50 50 62 Diluted potential common shares 206 222 252 245 Denominator for diluted EPS: Adjusted weighted-average shares outstanding 20,723 20,651 20,743 20,647 Basic EPS $ 1.13 $ 0.87 $ 1.82 $ 1.70 Diluted EPS $ 1.12 $ 0.87 $ 1.80 $ 1.68

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 01, 2022
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories on the Consolidated Balance Sheets are summarized as follows: July 1, December 31, (Thousands) 2022 2021 Raw materials and supplies $ 115,970 $ 93,518 Work in process 253,012 221,638 Finished goods 53,394 45,959 Inventories, net $ 422,376 $ 361,115

Pensions and Other Post-emplo_2

Pensions and Other Post-employment Benefits (Tables)	6 Months Ended
	Jul. 01, 2022
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 ended July 1, 2022 and July 2, 2021, respectively, for the pension plans as shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan. Pension Benefits Other Benefits Second Quarter Ended Second Quarter Ended July 1, July 2, July 1, July 2, (Thousands) 2022 2021 2022 2021 Components of net periodic benefit (credit) cost Service cost $ 292 $ 436 $ 20 $ 20 Interest cost 1,213 1,048 39 29 Expected return on plan assets (2,378) (2,474) — — Amortization of prior service (benefit) cost (18) (21) (374) (374) Amortization of net loss (gain) 420 577 (68) (69) Net periodic benefit (credit) cost $ (471) $ (434) $ (383) $ (394) Settlements — — — — Total net benefit (credit) cost $ (471) $ (434) $ (383) $ (394) Pension Benefits Other Benefits Six Months Ended Six Months Ended July 1, July 2, July 1, July 2, (Thousands) 2022 2021 2022 2021 Components of net periodic benefit (credit) cost Service cost $ 610 $ 874 $ 42 $ 40 Interest cost 2,436 2,096 78 58 Expected return on plan assets (4,778) (4,948) — — Amortization of prior service (benefit) cost (38) (42) (748) (748) Amortization of net loss (gain) 850 1,154 (136) (138) Net periodic benefit (credit) cost $ (920) $ (866) $ (764) $ (788) Settlements — — — — Total net benefit (credit) cost $ (920) $ (866) $ (764) $ (788)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jul. 01, 2022
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 2022 and 2021 are as follows: Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Interest Rate Precious Metals Copper Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at April 1, 2022 $ 2,451 $ 2,485 $ (246) $ — $ 4,690 $ (39,942) $ (4,934) $ (40,186) Other comprehensive income (loss) before reclassifications 1,117 756 467 — 2,340 — (6,343) (4,003) Amounts reclassified from accumulated other comprehensive income (loss) (110) 238 (8) — 120 (10) — 110 Net current period other comprehensive (loss) income before tax 1,007 994 459 — 2,460 (10) (6,343) (3,893) Deferred taxes 232 229 105 — 566 (26) — 540 Net current period other comprehensive (loss) income after tax 775 765 354 — 1,894 16 (6,343) (4,433) Balance at July 1, 2022 $ 3,226 $ 3,250 $ 108 $ — $ 6,584 $ (39,926) $ (11,277) $ (44,619) Balance at April 2, 2021 $ 1,462 $ — $ 320 $ 280 $ 2,062 $ (43,309) $ (4,840) $ (46,087) Other comprehensive (loss) income before reclassifications 183 — (239) 1,145 1,089 — 3,193 4,282 Amounts reclassified from accumulated other comprehensive income (loss) — — 65 (1,507) (1,442) 77 — (1,365) Net current period other comprehensive (loss) income before tax 183 — (174) (362) (353) 77 3,193 2,917 Deferred taxes 42 (40) (82) (80) (6) — (86) Net current period other comprehensive (loss) income after tax 141 — (134) (280) (273) 83 3,193 3,003 Balance at July 2, 2021 $ 1,603 $ — $ 186 $ — $ 1,789 $ (43,226) $ (1,647) $ (43,084) Gains and Losses on Cash Flow Hedges (Thousands) Foreign Currency Interest Rate Precious Metals Copper Total Pension and Post-Employment Benefits Foreign Currency Translation Total Balance at December 31, 2021 $ 2,348 $ — $ 72 $ — $ 2,420 $ (39,702) $ (2,887) $ (40,169) Other comprehensive income (loss) before reclassifications 1,270 3,868 (53) — 5,085 — (8,390) (3,305) Amounts reclassified from accumulated other comprehensive income (loss) (130) 353 99 — 322 (1,011) — (689) Net current period other comprehensive (loss) income before tax 1,140 4,221 46 — 5,407 (1,011) (8,390) (3,994) Deferred taxes 262 971 10 — 1,243 (787) — 456 Net current period other comprehensive (loss) income after tax 878 3,250 36 — 4,164 (224) (8,390) (4,450) Balance at July 1, 2022 $ 3,226 $ 3,250 $ 108 $ — $ 6,584 $ (39,926) $ (11,277) $ (44,619) Balance at December 31, 2020 $ 519 $ — $ (170) $ 468 $ 817 $ (43,473) $ 4,017 $ (38,639) Other comprehensive (loss) income before reclassifications 1,268 — 502 2,436 4,206 — (5,664) (1,458) Amounts reclassified from accumulated other comprehensive income (loss) 140 — (39) (3,041) (2,940) 234 — (2,706) Net current period other comprehensive (loss) income before tax 1,408 — 463 (605) 1,266 234 (5,664) (4,164) Deferred taxes 324 — 107 (137) 294 (13) — 281 Net current period other comprehensive (loss) income after tax 1,084 — 356 (468) 972 247 (5,664) (4,445) Balance at July 2, 2021 $ 1,603 $ — $ 186 $ — $ 1,789 $ (43,226) $ (1,647) $ (43,084)

Stock-based Compensation Expe_2

Stock-based Compensation Expense (Tables)	6 Months Ended
	Jul. 01, 2022
Share-Based Payment Arrangement [Abstract]
Schedule Of Share Based Payment Award SARs Valuation Assumptions	The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model: Risk-free interest rate 1.56 % Dividend yield 0.59 % Volatility 38.5 % Expected term (in years) 4.4

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jul. 01, 2022
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 July 1, 2022 and December 31, 2021: (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices Significant Significant 2022 2021 2022 2021 2022 2021 2022 2021 Financial Assets Deferred compensation investments $ 2,899 $ 4,426 $ 2,899 $ 4,426 $ — $ — $ — $ — Foreign currency forward contracts 2,942 3,368 — — 2,942 3,368 — — Interest rate swap 4,221 — — — 4,221 — — — Precious metal swaps 214 116 — — 214 116 — — Total $ 10,276 $ 7,910 $ 2,899 $ 4,426 $ 7,377 $ 3,484 $ — $ — Financial Liabilities Deferred compensation liability $ 2,899 $ 4,426 $ 2,899 $ 4,426 $ — $ — $ — $ — Foreign currency forward contracts 627 136 — — 627 136 — — Precious metal swaps 76 24 — — 76 24 — — Total $ 3,602 $ 4,586 $ 2,899 $ 4,426 $ 703 $ 160 $ — $ —

Derivative Instruments and He_2

Derivative Instruments and Hedging Activity (Tables)	6 Months Ended
	Jul. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments NonHedging	The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments (on a gross basis) and the balance sheet classification as of July 1, 2022 and December 31, 2021: July 1, 2022 December 31, 2021 (Thousands) Notional Fair Notional Fair Foreign currency forward contracts Prepaid and other current assets $ 14,020 $ 533 $ 55,063 $ 2,132 Other liabilities and accrued items 13,466 587 9,425 128
Fair Value Measurements, Recurring and Nonrecurring	The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of July 1, 2022 and December 31, 2021: July 1, 2022 Fair Value (Thousands) Notional Prepaid and other current assets Other assets Other liabilities and accrued items Other long-term liabilities Foreign currency forward contracts - yen $ 4,091 $ 453 $ 34 $ 40 $ — Foreign currency forward contracts - euro 31,827 1,827 95 — — Precious metal swaps 6,802 199 15 76 — Interest rate swap 100,000 1,329 2,892 — — Total $ 142,720 $ 3,808 $ 3,036 $ 116 $ — December 31, 2021 Fair Value Notional Prepaid and other current assets Other assets Other liabilities and accrued items Other long-term liabilities Foreign currency forward contracts - yen $ 3,907 $ 131 $ 2 $ — $ — Foreign currency forward contracts - euro 28,412 1,102 — — 8 Precious metal swaps 6,256 116 — 24 — Total $ 38,575 $ 1,349 $ 2 $ 24 $ 8
Derivative Instruments, Gain (Loss)	The following table summarizes the amounts reclassified from accumulated other comprehensive income relating to the Company’s outstanding derivatives designated as cash flow hedges and associated income statement classification as of the second quarter and first six months of 2022 and 2021: Second Quarter Ended (Thousands) July 1, 2022 July 2, 2021 Hedging relationship Line item Foreign currency forward contracts Net sales $ (110) $ — Precious metal swaps Cost of sales (8) 65 Interest rate swap Interest expense - net 238 — Copper swaps Cost of sales — (1,507) Total $ 120 $ (1,442) Six Months Ended (Thousands) July 1, 2022 July 2, 2021 Hedging relationship Line item Foreign currency forward contracts Net sales $ (130) $ 140 Precious metal swaps Cost of sales 99 (39) Interest rate swap Interest expense - net 353 — Copper swaps Cost of sales — (3,041) Total $ 322 $ (2,940)

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 01, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	(Thousands) July 1, 2022 December 31, 2021 Borrowings under Credit Agreement $ 205,091 $ 152,296 Borrowings under the Term Loan Facility 292,500 300,000 Foreign debt 4,012 2,252 Total debt outstanding 501,603 454,548 Current portion of long-term debt (15,333) (15,359) Gross long-term debt 486,270 439,189 Unamortized deferred financing fees (4,305) (4,801) Long-term debt $ 481,965 $ 434,388

Acquisition - Additional Inform

Acquisition - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended		8 Months Ended
	Nov. 01, 2021	Oct. 31, 2021	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill			$ 319,994		$ 319,994		$ 319,994	$ 318,620
Amortization of intangible assets			3,099	$ 1,005	6,230	$ 2,178
HCS- Electronic Materials
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 398,900
Inventory step up							0
Debt instrument, face amount		$ 300,000
Debt instrument, term		5 years
Outstanding amount			103,000		103,000		103,000
Working capital true-up			3,000
Goodwill	$ 178,181		181,869		181,869		$ 181,869
Revenue since acquisition date			43,600
Income (loss) before taxes since acquisition date			$ 7,600
Net Sales				409,202	86,900	794,586
Profit income (loss) before taxes				22,138	6,000	41,135
HCS- Electronic Materials | Cost of sales
Business Acquisition [Line Items]
Inventory step up					7,500
HCS- Electronic Materials | Selling, General and Administrative Expenses
Business Acquisition [Line Items]
Business combination, integration related costs					$ 2,600
HCS- Electronic Materials | Business Acquisition, Pro Forma Net Income (Loss)
Business Acquisition [Line Items]
Interest expense				4,300		7,200
Amortization of intangible assets				$ 2,000		$ 4,000

Acquisition - Schedule of Busin

Acquisition - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands	8 Months Ended
	Jul. 01, 2022	Dec. 31, 2021	Nov. 01, 2021
Assets:
Operating lease, right-of-use assets	$ 68,045	$ 63,096
Goodwill	319,994	$ 318,620
HCS- Electronic Materials
Assets:
Cash and cash equivalents	3,685		$ 3,685
Measurement Period Adjustments, Cash and cash equivalents	0
Accounts receivable	28,352		28,352
Measurement Period Adjustments, Accounts receivable	0
Inventories	70,681		70,681
Measurement Period Adjustments, Inventories	0
Prepaid and other current assets	305		660
Measurement Period Adjustments, Prepaid and other current assets	(355)
Property, plant, and equipment	45,036		44,681
Measurement Period Adjustments, , Property, plant, and equipment	355
Operating lease, right-of-use assets	6,120		6,120
Measurement Period Adjustments, Operating lease, right-of-use assets	0
Intangible assets	107,800		107,800
Measurement Period Adjustments, Intangible assets	0
Other long-term assets	4,528		4,528
Measurement Period Adjustments, Other long-term assets	0
Goodwill	181,869		178,181
Measurement Period Adjustments, Goodwill	3,688
Total assets acquired	448,376		444,688
Measurement Period Adjustments, Total assets acquired	3,688
Liabilities:
Accounts payable	12,139		12,139
Measurement Period Adjustments, Accounts payable	0
Salaries and wages	2,951		2,516
Measurement Period Adjustments, Salaries and wages	435
Other liabilities and accrued items	28		28
Measurement Period Adjustments, Other liabilities and accrued items	0
Income taxes	2,262		2,183
Measurement Period Adjustments, Income taxes	79
Other long-term liabilities	5,758		5,543
Measurement Period Adjustments, Other long-term liabilities	215
Operating lease liabilities	6,042		6,042
Measurement Period Adjustments, Operating lease liabilities	0
Deferred income taxes	20,300		20,300
Measurement Period Adjustments, Deferred income taxes	0
Total liabilities assumed	49,480		48,751
Measurement Period Adjustments, Total liabilities assumed	729
Net assets acquired	398,896		$ 395,937
Measurement Period Adjustments, Net assets acquired	$ 2,959

Acquisition - Finite-Lived and

Acquisition - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - HCS- Electronic Materials - USD ($) $ in Thousands	Nov. 01, 2021	Jul. 01, 2022
Business Acquisition [Line Items]
Intangible assets	$ 107,800	$ 107,800
Customer relationships
Business Acquisition [Line Items]
Intangible assets	$ 50,200
Useful Life	13 years
Technology
Business Acquisition [Line Items]
Intangible assets	$ 35,300
Useful Life	13 years
Trade name
Business Acquisition [Line Items]
Intangible assets	$ 22,300
Useful Life	15 years

Acquisition - Pro Forma Informa

Acquisition - Pro Forma Information (Details) - HCS- Electronic Materials - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Business Acquisition [Line Items]
Net Sales	$ 409,202	$ 86,900	$ 794,586
Profit income (loss) before taxes	$ 22,138	$ 6,000	$ 41,135

Segment Reporting - Segment Rep

Segment Reporting - Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Segment Reporting Information [Line Items]
Net sales	$ 445,295	$ 370,999	$ 894,340	$ 725,385
Total Segment EBITDA	45,919	32,464	79,874	62,057
Income tax expense	5,072	3,274	8,093	6,740
Interest expense—net	4,701	858	8,437	1,619
Depreciation, depletion, and amortization	12,891	10,464	26,070	19,063
Net income	23,255	17,868	37,274	34,635
Performance Materials
Segment Reporting Information [Line Items]
Net sales	154,889	125,294	304,520	239,437
Total Segment EBITDA	27,229	22,318	52,021	39,110
Performance Materials | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	200		500
Electronic Materials
Segment Reporting Information [Line Items]
Net sales	260,971	213,114	531,807	417,758
Total Segment EBITDA	22,337	10,412	34,484	21,342
Electronic Materials | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	2,700	3,200	8,200	5,900
Precision Optics
Segment Reporting Information [Line Items]
Net sales	29,435	32,591	58,013	68,190
Total Segment EBITDA	3,544	5,547	5,735	13,018
Other
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Total Segment EBITDA	$ (7,191)	$ (5,813)	$ (12,366)	$ (11,413)

Segment Reporting - Disaggregat

Segment Reporting - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 445,295	$ 370,999	$ 894,340	$ 725,385
Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	217,718	169,337	435,767	325,866
Industrial
Disaggregation of Revenue [Line Items]
Net sales	61,266	48,585	126,384	92,580
Aerospace and defense
Disaggregation of Revenue [Line Items]
Net sales	32,565	26,507	64,009	56,323
Consumer electronics
Disaggregation of Revenue [Line Items]
Net sales	22,306	17,952	40,946	37,621
Automotive
Disaggregation of Revenue [Line Items]
Net sales	29,028	29,630	55,239	56,999
Energy
Disaggregation of Revenue [Line Items]
Net sales	36,040	29,096	75,259	60,423
Telecom and data center
Disaggregation of Revenue [Line Items]
Net sales	16,244	13,064	32,368	24,477
Other
Disaggregation of Revenue [Line Items]
Net sales	30,128	36,828	64,368	71,096
Performance Materials
Disaggregation of Revenue [Line Items]
Net sales	154,889	125,294	304,520	239,437
Performance Materials | Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	2,446	1,806	4,246	2,803
Performance Materials | Industrial
Disaggregation of Revenue [Line Items]
Net sales	41,701	30,264	82,520	54,294
Performance Materials | Aerospace and defense
Disaggregation of Revenue [Line Items]
Net sales	27,615	19,250	51,299	41,092
Performance Materials | Consumer electronics
Disaggregation of Revenue [Line Items]
Net sales	16,212	10,722	29,215	20,766
Performance Materials | Automotive
Disaggregation of Revenue [Line Items]
Net sales	24,855	25,766	47,091	49,273
Performance Materials | Energy
Disaggregation of Revenue [Line Items]
Net sales	10,679	4,880	20,778	9,017
Performance Materials | Telecom and data center
Disaggregation of Revenue [Line Items]
Net sales	16,223	13,025	32,303	24,368
Performance Materials | Other
Disaggregation of Revenue [Line Items]
Net sales	15,158	19,581	37,068	37,824
Electronic Materials
Disaggregation of Revenue [Line Items]
Net sales	260,971	213,114	531,807	417,758
Electronic Materials | Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	213,742	166,968	428,664	322,029
Electronic Materials | Industrial
Disaggregation of Revenue [Line Items]
Net sales	11,957	10,687	27,823	23,277
Electronic Materials | Aerospace and defense
Disaggregation of Revenue [Line Items]
Net sales	1,284	1,660	3,898	3,058
Electronic Materials | Consumer electronics
Disaggregation of Revenue [Line Items]
Net sales	280	266	605	431
Electronic Materials | Automotive
Disaggregation of Revenue [Line Items]
Net sales	1,465	1,757	3,122	3,426
Electronic Materials | Energy
Disaggregation of Revenue [Line Items]
Net sales	25,361	24,216	54,481	51,406
Electronic Materials | Telecom and data center
Disaggregation of Revenue [Line Items]
Net sales	21	39	65	109
Electronic Materials | Other
Disaggregation of Revenue [Line Items]
Net sales	6,861	7,521	13,149	14,022
Precision Optics
Disaggregation of Revenue [Line Items]
Net sales	29,435	32,591	58,013	68,190
Precision Optics | Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	1,530	563	2,857	1,034
Precision Optics | Industrial
Disaggregation of Revenue [Line Items]
Net sales	7,608	7,634	16,041	15,009
Precision Optics | Aerospace and defense
Disaggregation of Revenue [Line Items]
Net sales	3,666	5,597	8,812	12,173
Precision Optics | Consumer electronics
Disaggregation of Revenue [Line Items]
Net sales	5,814	6,964	11,126	16,424
Precision Optics | Automotive
Disaggregation of Revenue [Line Items]
Net sales	2,708	2,107	5,026	4,300
Precision Optics | Energy
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Precision Optics | Telecom and data center
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Precision Optics | Other
Disaggregation of Revenue [Line Items]
Net sales	8,109	9,726	14,151	19,250
Other
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Industrial
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Aerospace and defense
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Consumer electronics
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Automotive
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Energy
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Telecom and data center
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Other | Other
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) $ in Millions	6 Months Ended
	Jul. 01, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 76.3
Contract with customer, liability, revenue recognized	$ 5.6

Revenue Recognition - (Details)

Revenue Recognition - (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Unearned revenue	$ 1,000
Change in unearned revenue	(141)	$ 3,246
Accounts receivable, trade
Capitalized Contract Cost [Line Items]
Accounts receivable, trade	213,221		$ 213,584
Change in accounts receivable, trade	$ (363)
Contract asset percent change	0%
Unbilled receivables
Capitalized Contract Cost [Line Items]
Unbilled receivables	$ 8,916		7,961
Change in unbilled receivables	$ 955
Contract asset percent change	12%
Unearned revenue
Capitalized Contract Cost [Line Items]
Unearned revenue	$ 8,097		$ 7,770
Change in unearned revenue	$ 327
Contract liability percent change	4%

Other-net (Detail)

Other-net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Other Income and Expenses [Abstract]
Amortization of intangible assets	$ 3,099	$ 1,005	$ 6,230	$ 2,178
Metal consignment fees	2,871	2,464	5,882	4,614
Foreign currency (gain) loss	28	(33)	(305)	1,216
Net loss (gain) on disposal of fixed assets	29	24	18	(364)
Other items	(99)	734	(24)	1,024
Total	$ 5,928	$ 4,194	$ 11,801	$ 8,668

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate, percent	17.90%	15.50%	17.80%	16.30%
Effective income tax rate, amount			$ 0.4	$ 0.5

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Numerator for basic and diluted EPS:
Net income	$ 23,255	$ 17,868	$ 37,274	$ 34,635
Denominator for basic EPS:
Weighted-average shares outstanding (in shares)	20,517	20,429	20,491	20,402
Effect of dilutive securities:
Diluted potential common shares (in shares)	206	222	252	245
Denominator for diluted EPS:
Adjusted weighted-average shares outstanding (in shares)	20,723	20,651	20,743	20,647
Basic EPS (in USD per share)	$ 1.13	$ 0.87	$ 1.82	$ 1.70
Diluted EPS (in USD per share)	$ 1.12	$ 0.87	$ 1.80	$ 1.68
Stock appreciation rights
Effect of dilutive securities:
Dilutive effect of share-based compensation (in shares)	81	79	86	75
Restricted stock units
Effect of dilutive securities:
Dilutive effect of share-based compensation (in shares)	82	93	116	108
Performance-based restricted stock units
Effect of dilutive securities:
Dilutive effect of share-based compensation (in shares)	43	50	50	62

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Out-of-The-Money
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from diluted EPS calculation (in shares)	119,744	52,709	79,949	64,478

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 115,970	$ 93,518
Work in process	253,012	221,638
Finished goods	53,394	45,959
Inventories, net	$ 422,376	$ 361,115

Inventories - Additional Inform

Inventories - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 01, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Notional amount of nonderivative instruments	$ 415	$ 480.2

Customer Prepayments (Details)

Customer Prepayments (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 01, 2022	Dec. 31, 2021
Customer Prepayments [Abstract]
Prepayments from customers	$ 13.1
Deferred income	84.6	$ 72.6
Unearned revenue	$ 1

Pensions and Other Post-emplo_3

Pensions and Other Post-employment Benefits (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Components of net periodic benefit (credit) cost
Contributions by employer	$ 0	$ 0	$ 0	$ 0
Pension Benefits
Components of net periodic benefit (credit) cost
Service cost	292,000	436,000	610,000	874,000
Interest cost	1,213,000	1,048,000	2,436,000	2,096,000
Expected return on plan assets	(2,378,000)	(2,474,000)	(4,778,000)	(4,948,000)
Amortization of prior service (benefit) cost	(18,000)	(21,000)	(38,000)	(42,000)
Amortization of net loss (gain)	420,000	577,000	850,000	1,154,000
Net periodic benefit (credit) cost	(471,000)	(434,000)	(920,000)	(866,000)
Settlements	0	0	0	0
Total net benefit (credit) cost	(471,000)	(434,000)	(920,000)	(866,000)
Other Benefits
Components of net periodic benefit (credit) cost
Service cost	20,000	20,000	42,000	40,000
Interest cost	39,000	29,000	78,000	58,000
Expected return on plan assets	0	0	0	0
Amortization of prior service (benefit) cost	(374,000)	(374,000)	(748,000)	(748,000)
Amortization of net loss (gain)	(68,000)	(69,000)	(136,000)	(138,000)
Net periodic benefit (credit) cost	(383,000)	(394,000)	(764,000)	(788,000)
Settlements	0	0	0	0
Total net benefit (credit) cost	$ (383,000)	$ (394,000)	$ (764,000)	$ (788,000)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	$ (40,186)	$ (46,087)	$ (40,169)	$ (38,639)
Other comprehensive income (loss) before reclassifications	(4,003)	4,282	(3,305)	(1,458)
Amounts reclassified from accumulated other comprehensive income (loss)	110	(1,365)	(689)	(2,706)
Net current period other comprehensive (loss) income before tax	(3,893)	2,917	(3,994)	(4,164)
Deferred taxes	540	(86)	456	281
Other comprehensive income (loss)	(4,433)	3,003	(4,450)	(4,445)
Accumulated other comprehensive income (loss), ending balance	(44,619)	(43,084)	(44,619)	(43,084)
Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	4,690	2,062	2,420	817
Other comprehensive income (loss) before reclassifications	2,340	1,089	5,085	4,206
Amounts reclassified from accumulated other comprehensive income (loss)	120	(1,442)	322	(2,940)
Net current period other comprehensive (loss) income before tax	2,460	(353)	5,407	1,266
Deferred taxes	566	(80)	1,243	294
Other comprehensive income (loss)	1,894	(273)	4,164	972
Accumulated other comprehensive income (loss), ending balance	6,584	1,789	6,584	1,789
Pension and Post-Employment Benefits
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	(39,942)	(43,309)	(39,702)	(43,473)
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	(10)	77	(1,011)	234
Net current period other comprehensive (loss) income before tax	(10)	77	(1,011)	234
Deferred taxes	(26)	(6)	(787)	(13)
Other comprehensive income (loss)	16	83	(224)	247
Accumulated other comprehensive income (loss), ending balance	(39,926)	(43,226)	(39,926)	(43,226)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	(4,934)	(4,840)	(2,887)	4,017
Other comprehensive income (loss) before reclassifications	(6,343)	3,193	(8,390)	(5,664)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Net current period other comprehensive (loss) income before tax	(6,343)	3,193	(8,390)	(5,664)
Deferred taxes	0	0	0	0
Other comprehensive income (loss)	(6,343)	3,193	(8,390)	(5,664)
Accumulated other comprehensive income (loss), ending balance	(11,277)	(1,647)	(11,277)	(1,647)
Foreign Currency | Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	2,451	1,462	2,348	519
Other comprehensive income (loss) before reclassifications	1,117	183	1,270	1,268
Amounts reclassified from accumulated other comprehensive income (loss)	(110)	0	(130)	140
Net current period other comprehensive (loss) income before tax	1,007	183	1,140	1,408
Deferred taxes	232	42	262	324
Other comprehensive income (loss)	775	141	878	1,084
Accumulated other comprehensive income (loss), ending balance	3,226	1,603	3,226	1,603
Interest rate swap | Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	2,485	0	0	0
Other comprehensive income (loss) before reclassifications	756	0	3,868	0
Amounts reclassified from accumulated other comprehensive income (loss)	238	0	353	0
Net current period other comprehensive (loss) income before tax	994	0	4,221	0
Deferred taxes	229		971	0
Other comprehensive income (loss)	765	0	3,250	0
Accumulated other comprehensive income (loss), ending balance	3,250	0	3,250	0
Precious Metals | Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	(246)	320	72	(170)
Other comprehensive income (loss) before reclassifications	467	(239)	(53)	502
Amounts reclassified from accumulated other comprehensive income (loss)	(8)	65	99	(39)
Net current period other comprehensive (loss) income before tax	459	(174)	46	463
Deferred taxes	105	(40)	10	107
Other comprehensive income (loss)	354	(134)	36	356
Accumulated other comprehensive income (loss), ending balance	108	186	108	186
Copper swaps | Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Rollforward]
Accumulated other comprehensive income (loss), beginning balance	0	280	0	468
Other comprehensive income (loss) before reclassifications	0	1,145	0	2,436
Amounts reclassified from accumulated other comprehensive income (loss)	0	(1,507)	0	(3,041)
Net current period other comprehensive (loss) income before tax	0	(362)	0	(605)
Deferred taxes	0	(82)	0	(137)
Other comprehensive income (loss)	0	(280)	0	(468)
Accumulated other comprehensive income (loss), ending balance	$ 0	$ 0	$ 0	$ 0

Stock-based Compensation Expe_3

Stock-based Compensation Expense - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2	$ 2.2	$ 3.8	$ 3.8
Unamortized compensation cost	$ 15.2		$ 15.2
Stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted in period (in shares)			45,016
Weighted average exercise price on SARs granted in period (in usd per share)			$ 80.85
Grant date fair value per unit (in usd per share)			$ 25.87
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted in period (in shares)			59,599
Grant date fair value per unit (in usd per share)			$ 80.87
Vesting period			3 years
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value per unit (in usd per share)			$ 97.79
Vesting period			3 years

Stock-based Compensation Expe_4

Stock-based Compensation Expense - Schedule Of Share Based Payment Award SARs Valuation Assumptions (Detail) - Stock appreciation rights	6 Months Ended
	Jul. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.56%
Dividend yield	0.59%
Volatility	38.50%
Expected term (in years)	4 years 4 months 24 days

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Financial Assets
Deferred compensation investments	$ 2,899	$ 4,426
Foreign currency forward contracts	2,942	3,368
Interest rate swap	4,221	0
Precious metal swaps	214	116
Total	10,276	7,910
Financial Liabilities
Deferred compensation liability	2,899	4,426
Foreign currency forward contracts	627	136
Precious metal swaps	76	24
Total	3,602	4,586
Quoted Prices in  Active Markets  for Identical Assets (Level 1)
Financial Assets
Deferred compensation investments	2,899	4,426
Foreign currency forward contracts	0	0
Interest rate swap	0	0
Precious metal swaps	0	0
Total	2,899	4,426
Financial Liabilities
Deferred compensation liability	2,899	4,426
Foreign currency forward contracts	0	0
Precious metal swaps	0	0
Total	2,899	4,426
Significant Other Observable Inputs (Level 2)
Financial Assets
Deferred compensation investments	0	0
Foreign currency forward contracts	2,942	3,368
Interest rate swap	4,221	0
Precious metal swaps	214	116
Total	7,377	3,484
Financial Liabilities
Deferred compensation liability	0	0
Foreign currency forward contracts	627	136
Precious metal swaps	76	24
Total	703	160
Significant Unobservable Inputs (Level 3)
Financial Assets
Deferred compensation investments	0	0
Foreign currency forward contracts	0	0
Interest rate swap	0	0
Precious metal swaps	0	0
Total	0	0
Financial Liabilities
Deferred compensation liability	0	0
Foreign currency forward contracts	0	0
Precious metal swaps	0	0
Total	$ 0	$ 0

Derivative Instruments and He_3

Derivative Instruments and Hedging Activity - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021	Mar. 04, 2022
Derivatives, Fair Value [Line Items]
Foreign currency gain (loss) related to derivatives	$ (0.1)	$ (0.4)	$ 0.7	$ 1.2
Cash flow hedge gain (loss) to be reclassified within twelve months			$ 3.7
Letter of Credit | Interest rate swap | Designated as hedging instrument
Derivatives, Fair Value [Line Items]
Notional amount total					$ 100

Derivative Instruments and He_4

Derivative Instruments and Hedging Activity - Derivative Instruments NonHedging (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Designated as hedging instrument
Derivative [Line Items]
Notional amount, asset	$ 142,720	$ 38,575
Foreign currency forward contracts | Designated as hedging instrument | Yen
Derivative [Line Items]
Notional amount, asset	4,091	3,907
Foreign currency forward contracts | Designated as hedging instrument | Euro
Derivative [Line Items]
Notional amount, asset	31,827	28,412
Prepaid and other current assets | Designated as hedging instrument
Derivative [Line Items]
Fair value, asset	3,808	1,349
Prepaid and other current assets | Foreign currency forward contracts | Not designated as hedging instrument
Derivative [Line Items]
Notional amount, asset	14,020	55,063
Fair value, asset	533	2,132
Prepaid and other current assets | Foreign currency forward contracts | Designated as hedging instrument | Yen
Derivative [Line Items]
Fair value, asset	453	131
Prepaid and other current assets | Foreign currency forward contracts | Designated as hedging instrument | Euro
Derivative [Line Items]
Fair value, asset	1,827	1,102
Other liabilities and accrued items | Designated as hedging instrument
Derivative [Line Items]
Fair value, liability	116	24
Other liabilities and accrued items | Foreign currency forward contracts | Not designated as hedging instrument
Derivative [Line Items]
Notional amount, liability	13,466	9,425
Fair value, liability	587	128
Other liabilities and accrued items | Foreign currency forward contracts | Designated as hedging instrument | Yen
Derivative [Line Items]
Fair value, liability	40	0
Other liabilities and accrued items | Foreign currency forward contracts | Designated as hedging instrument | Euro
Derivative [Line Items]
Fair value, liability	$ 0	$ 0

Derivative Instruments and He_5

Derivative Instruments and Hedging Activity - Fair Value Measurements, Recurring and Nonrecurring (Details) - Designated as hedging instrument - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount, asset	$ 142,720	$ 38,575
Precious metal swaps
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount, asset	6,802	6,256
Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount, asset	100,000
Prepaid and other current assets
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	3,808	1,349
Prepaid and other current assets | Precious metal swaps
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	199	116
Prepaid and other current assets | Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	1,329
Other assets
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	3,036	2
Other assets | Precious metal swaps
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	15	0
Other assets | Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	2,892
Other liabilities and accrued items
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	116	24
Other liabilities and accrued items | Precious metal swaps
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	76	24
Other liabilities and accrued items | Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	0
Other long-term liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	0	8
Other long-term liabilities | Precious metal swaps
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	0	0
Other long-term liabilities | Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	0
Yen | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount, asset	4,091	3,907
Yen | Prepaid and other current assets | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	453	131
Yen | Other assets | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	34	2
Yen | Other liabilities and accrued items | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	40	0
Yen | Other long-term liabilities | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	0	0
Euro | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount, asset	31,827	28,412
Euro | Prepaid and other current assets | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	1,827	1,102
Euro | Other assets | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, asset	95	0
Euro | Other liabilities and accrued items | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	0	0
Euro | Other long-term liabilities | Foreign Currency
Derivative Instruments, Gain (Loss) [Line Items]
Fair value, liability	$ 0	$ 8

Derivative Instruments and He_6

Derivative Instruments and Hedging Activity - Derivative Instruments, Gain (Loss) (Details) - Designated as hedging instrument - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 01, 2022	Jul. 02, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	$ 120	$ (1,442)	$ 322	$ (2,940)
Net sales | Foreign currency forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	(110)	0	(130)	140
Cost of sales | Precious metal swaps
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	(8)	65	99	(39)
Cost of sales | Copper swaps
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	0	(1,507)	0	(3,041)
Interest expense - net | Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	$ 238	$ 0	$ 353	$ 0

Contingencies (Detail)

Contingencies (Detail) $ in Millions	Jul. 01, 2022 USD ($) claim	Dec. 31, 2021 USD ($)
Loss Contingency [Abstract]
Loss contingency, pending claims | claim	1
Undiscounted reserve balance | $	$ 4.3	$ 4.8

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Borrowings under Credit Agreement	$ 205,091	$ 152,296
Borrowings under the Term Loan Facility	292,500	300,000
Foreign debt	4,012	2,252
Total debt outstanding	501,603	454,548
Current portion of long-term debt	(15,333)	(15,359)
Gross long-term debt	486,270	439,189
Unamortized deferred financing fees	(4,305)	(4,801)
Long-term debt	$ 481,965	$ 434,388

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Borrowings under Credit Agreement	$ 205,091	$ 152,296
Line of credit facility, interest rate at period end	3.56%	2.12%
Line of credit facility, remaining borrowing capacity	$ 124,000
Long-term line of credit, noncurrent	292,500	$ 300,000
Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	$ 46,400	$ 46,300