Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 21, 2013 | |
Document Information [Line Items] | ||
Trading Symbol | ROG | |
Entity Registrant Name | ROGERS CORP | |
Entity Central Index Key | 84748 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 17,720,405 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $142,820 | $129,134 | $401,252 | $374,584 |
Cost of sales | 91,634 | 86,157 | 264,347 | 258,550 |
Gross margin | 51,186 | 42,977 | 136,905 | 116,034 |
Selling and administrative expenses | 25,582 | 26,074 | 76,335 | 72,640 |
Research and development expenses | 5,364 | 4,808 | 16,883 | 14,606 |
Restructuring and impairment charges | 1,231 | 1,766 | 5,756 | 9,949 |
Operating income (loss) | 19,009 | 10,329 | 37,931 | 18,839 |
Equity income in unconsolidated joint ventures | 1,754 | 1,773 | 3,045 | 3,735 |
Other income (expense), net | -101 | 19 | -867 | 140 |
Realized investment gain (loss): | ||||
Increase (decrease) in fair value of investments | 0 | 0 | 0 | -522 |
Less: Portion reclassified to/from other comprehensive income | 0 | 0 | 0 | 2,723 |
Net realized gain (loss) | 0 | 0 | 0 | -3,245 |
Interest income (expense), net | -881 | -1,104 | -2,616 | -3,366 |
Income (loss) before income tax expense (benefit) | 19,781 | 11,017 | 37,493 | 16,103 |
Income tax expense (benefit) | 6,209 | -48,107 | 11,361 | -47,852 |
Income (loss) from continuing operations | 13,572 | 59,124 | 26,132 | 63,955 |
Income (loss) from discontinued operations, net of income taxes | 0 | -148 | 102 | -333 |
Net income (loss) | $13,572 | $58,976 | $26,234 | $63,622 |
Basic net income (loss) per share: | ||||
Income (loss) from continuing operations (dollars per share) | $0.79 | $3.59 | $1.52 | $3.91 |
Income (loss) from discontinued operations (dollars per share) | ($0.01) | $0.01 | ($0.02) | |
Net income (loss) (dollars per share) | $0.79 | $3.58 | $1.53 | $3.89 |
Diluted net income (loss) per share: | ||||
Income (loss) from continuing operations (dollars per share) | $0.76 | $3.47 | $1.48 | $3.78 |
Income (loss) from discontinued operations (in dollars per share) | ($0.01) | $0.01 | ($0.02) | |
Net income (loss) (in dollars per share) | $0.76 | $3.46 | $1.49 | $3.76 |
Shares used in computing: | ||||
Basic (shares) | 17,244,831 | 16,484,957 | 17,141,672 | 16,342,289 |
Diluted (shares) | 17,863,035 | 17,024,137 | 17,711,972 | 16,903,224 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $158,608 | $114,863 |
Restricted cash | 950 | |
Accounts receivable, less allowance for doubtful accounts of $1,784 and $1,773 | 97,312 | 78,788 |
Accounts receivable from joint ventures | 2,447 | 2,142 |
Accounts receivable, other | 1,182 | 2,297 |
Taxes receivable | 2,025 | 5,079 |
Inventories | 65,783 | 73,178 |
Prepaid income taxes | 5,495 | 4,914 |
Deferred income taxes | 7,754 | 7,225 |
Asbestos-related insurance receivables | 8,195 | 8,195 |
Other current assets | 7,966 | 8,559 |
Assets of discontinued operations | 746 | |
Total current assets | 356,767 | 306,936 |
Property, plant and equipment, net of accumulated depreciation of $218,836 and $205,575 | 148,332 | 149,017 |
Investments in unconsolidated joint ventures | 20,908 | 21,171 |
Deferred income taxes | 57,380 | 71,439 |
Goodwill | 106,887 | 105,041 |
Other intangible assets | 49,890 | 53,288 |
Asbestos-related insurance receivables | 40,067 | 40,067 |
Investments, other | 5,127 | 5,000 |
Other long-term assets | 7,784 | 8,065 |
Total assets | 793,142 | 760,024 |
Current liabilities | ||
Accounts payable | 21,674 | 16,730 |
Accrued employee benefits and compensation | 26,150 | 23,156 |
Accrued income taxes payable | 2,661 | 3,135 |
Current portion of lease obligation | 834 | 1,423 |
Current portion of long term debt | 16,250 | 20,500 |
Asbestos-related liabilities | 8,195 | 8,195 |
Other accrued liabilities | 10,675 | 11,363 |
Liabilities of discontinued operations | 3 | |
Total current liabilities | 86,439 | 84,505 |
Long term lease obligation | 7,121 | 6,942 |
Long term debt | 65,000 | 77,500 |
Pension liability | 27,508 | 65,942 |
Retiree health care and life insurance benefits | 10,654 | 10,654 |
Asbestos-related liabilities | 43,222 | 43,222 |
Non-current income tax | 20,713 | 19,300 |
Deferred income taxes | 17,229 | 17,545 |
Other long-term liabilities | 347 | 262 |
Shareholders’ Equity | ||
Capital Stock - $1 par value; 50,000,000 authorized shares; 17,715,820 and 16,904,441 shares outstanding | 17,716 | 16,904 |
Additional paid-in capital | 102,755 | 74,272 |
Retained earnings | 427,018 | 400,784 |
Accumulated other comprehensive income (loss) | -32,580 | -57,808 |
Total shareholders' equity | 514,909 | 434,152 |
Total liabilities and shareholders' equity | $793,142 | $760,024 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $1,784 | $1,773 |
Property, plant and equipment, accumulated depreciation | $218,836 | $205,575 |
Capital Stock, par value (dollars per share) | $1 | $1 |
Capital Stock, authorized shares (shares) | 50,000,000 | 50,000,000 |
Capital Stock, shares outstanding (shares) | 17,715,820 | 16,904,441 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Capital Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2012 | $434,152 | $16,904 | $74,272 | $400,784 | ($57,808) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 26,234 | 26,234 | |||
Other comprehensive income (loss) | 25,228 | 25,228 | |||
Stock options exercised | 26,047 | 722 | 25,325 | ||
Stock issued to directors | 0 | 15 | -15 | ||
Shares issued for employees stock purchase plan | 733 | 25 | 708 | ||
Shares issued for restricted stock | -1,189 | 50 | -1,239 | ||
Stock-based compensation expense | 3,704 | 3,704 | |||
Ending Balance at Sep. 30, 2013 | $514,909 | $17,716 | $102,755 | $427,018 | ($32,580) |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income (loss) from continuing operations, net of tax | $13,572 | $59,124 | $26,132 | $63,955 | ||||
Foreign currency translation adjustment | 11,083 | 5,416 | 4,877 | 530 | ||||
Net unrealized gain (loss) on marketable securities reclassified into earnings | [1] | [1] | [1] | 1,168 | [1] | |||
Unrealized gain (loss) on derivative instruments held at period end, net of tax | -54 | [1] | -296 | [1] | 19 | [1] | -84 | [1] |
Pension and postretirement actuarial net gain (loss) incurred in fiscal year | 0 | 0 | 17,225 | 0 | ||||
Other comprehensive income (loss) | 11,383 | 7,355 | 25,228 | 5,785 | ||||
Comprehensive income (loss) from continuing operations | 24,955 | 66,479 | 51,360 | 69,740 | ||||
Income (loss) from discontinued operations, net of income taxes | 0 | -148 | 102 | -333 | ||||
Comprehensive income (loss) | 24,955 | 66,331 | 51,462 | 69,407 | ||||
Amortization of loss [Member] | ||||||||
Pension and postretirement benefit plans reclassified into earnings, net of tax | 354 | [1] | 2,233 | [1] | 2,103 | [1] | 4,165 | [1] |
Amortization of prior service cost [Member] | ||||||||
Pension and postretirement benefit plans reclassified into earnings, net of tax | $0 | [1] | $2 | [1] | $1,004 | [1] | $6 | [1] |
[1] | See Note 5 - "Accumulated Other Comprehensive Income (Loss)" for tax impacts. |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities: | ||
Net income (loss) | $26,234 | $63,622 |
Loss (income) from discontinued operations | -102 | 333 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 19,617 | 20,655 |
Stock-based compensation expense | 3,704 | 3,775 |
Loss from long-term investments | 3,245 | |
Deferred income taxes | 2,267 | -54,330 |
Equity in undistributed income of unconsolidated joint ventures | -3,045 | -3,735 |
Dividends received from unconsolidated joint ventures | 1,988 | 2,929 |
Pension and postretirement benefits | 5,346 | 11,149 |
Gain from the sale of property, plant and equipment | -104 | -579 |
Impairment of assets | 539 | |
Changes in operating assets and liabilities excluding effects of acquisition and disposition of businesses: | ||
Accounts receivable, accounts receivable other and taxes receivable | -14,121 | -10,245 |
Accounts receivable, joint ventures | -305 | -1,187 |
Inventories | 7,875 | 8,196 |
Pension contribution | -13,000 | -22,326 |
Other current assets | 34 | -1,146 |
Accounts payable and other accrued expenses | 6,089 | -6,411 |
Other, net | 1,779 | 1,350 |
Net cash provided by (used in) operating activities of continuing operations | 44,256 | 15,834 |
Net cash provided by (used in) operating activities of discontinued operations | 848 | -312 |
Net cash provided by (used in) operating activities | 45,104 | 15,522 |
Investing Activities: | ||
Capital expenditures | -13,549 | -16,465 |
Proceeds from the sale of property, plant and equipment, net | 25,438 | |
Proceeds from the sale of property, plant and equipment, net | 104 | 1,979 |
Deferred purchase price for previous acquisition of business | -3,100 | |
Net cash provided by (used in) investing activities of continuing operations | -13,445 | 7,852 |
Financing Activities: | ||
Repayment of debt principal and long term lease obligation | -17,371 | -17,242 |
Proceeds from sale of capital stock, net | 26,047 | 7,926 |
Issuance of restricted stock shares | -1,189 | -755 |
Proceeds from issuance of shares to employee stock purchase plan | 733 | 413 |
Net cash provided by (used in) financing activities of continuing operations | 8,220 | -9,658 |
Effect of exchange rate fluctuations on cash | 3,866 | -2,343 |
Net increase (decrease) in cash and cash equivalents | 43,745 | 11,373 |
Cash and cash equivalents at beginning of year | 114,863 | 79,728 |
Cash and cash equivalents at end of quarter | $158,608 | $91,101 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, the accompanying condensed consolidated statements of financial position and related interim condensed consolidated statements of income (loss), condensed consolidated statements of shareholders' equity, condensed consolidated statement of comprehensive income (loss) and condensed consolidated statements of cash flows include all normal recurring adjustments necessary for their fair presentation in accordance with U.S. generally accepted accounting principles. All significant intercompany transactions have been eliminated. | |
For all periods and amounts presented, reclassifications have been made for discontinued operations. In the second quarter of 2012, we ceased production at our non-woven composite materials operating segment that was classified as a discontinued operation as of December 31, 2012. See Note 16 -"Discontinued Operations" for further discussion. | |
Certain amounts in the prior-year unaudited condensed consolidated financial statements have been reclassified to conform with the current-year presentation. | |
Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Form 10-K for the fiscal year ended December 31, 2012. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||
The accounting guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: | ||||||||||||||||||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
• | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||
From time to time we enter into various instruments that require fair value measurement, including foreign currency option contracts, interest rate swaps and copper derivative contracts. Assets and liabilities measured on a recurring basis, categorized by the level of inputs used in the valuation, include: | ||||||||||||||||||
(Dollars in thousands) | Balance Sheet Location | Carrying amount as of September 30, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Pension assets (1) | $ | 156,741 | $ | 106,619 | $ | 33,530 | $ | 16,592 | ||||||||||
Foreign exchange option contracts | Other current assets | 9 | — | 9 | — | |||||||||||||
Copper derivative instruments | Other current assets | 809 | — | 809 | — | |||||||||||||
Liabilities | ||||||||||||||||||
Interest rate swap instrument | Other accrued liabilities | (332 | ) | — | (332 | ) | — | |||||||||||
(Dollars in thousands) | Balance Sheet Location | Carrying amount as of December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Pension assets (1) | $ | 143,540 | $ | 98,269 | $ | 29,869 | $ | 15,402 | ||||||||||
Foreign exchange option contracts | Other current assets | 15 | — | 15 | — | |||||||||||||
Copper derivative instruments | Other current assets | 267 | — | 267 | — | |||||||||||||
Liabilities | ||||||||||||||||||
Interest rate swap instrument | Other accrued liabilities | (361 | ) | — | (361 | ) | — | |||||||||||
(1) Pension assets are recorded net of the projected benefit obligation as a long term pension liability, and are as of a April 30, 2013 valuation date. | ||||||||||||||||||
Auction Rate Securities | ||||||||||||||||||
During the first quarter of 2012, we liquidated our auction rate security portfolio, receiving net proceeds of $25.4 million on a stated par value of $29.5 million. As a result of this liquidation, we recognized a loss on the discount of the securities of $3.2 million (the remaining difference between the liquidation value and par value of $0.9 million had previously been recognized as an impairment loss) in our earnings. Since the markets for these securities failed in the first quarter of 2008, we had redeemed $24.9 million of these securities, mostly at par, prior to the liquidation in the first quarter of 2012. | ||||||||||||||||||
Prior to the first quarter of 2008, our available-for-sale auction rate securities were recorded at fair value as determined in the active market at the time. However, due to events in the credit markets, the auctions failed during the first quarter of 2008 for the auction rate securities that we held at that time, and all of our auction rate securities had been in a loss position since that time until they were liquidated in the first quarter of 2012. Given the lack of unobservable inputs in the auction markets since the first quarter of 2008, such securities were considered Level 3 securities. | ||||||||||||||||||
During 2011, we performed a fair value assessment of these securities based on a discounted cash flow model, utilizing various assumptions that included estimated interest rates, probabilities of successful auctions, the timing of cash flows, and the quality and level of collateral of the securities. These inputs were chosen based on our understanding of the expectations of the market and were consistent with the assumptions utilized during our assessment of these securities at year end 2011. | ||||||||||||||||||
Prior to the first quarter of 2012, we had recognized an other-than-temporary impairment (OTTI) on these securities. An OTTI is recognized in earnings for a security in an unrealized loss position when an entity either (a) has the intent to sell the security or (b) more likely than not will be required to sell the security before its anticipated recovery. If neither of these circumstances (a) or (b) are present the other-than-temporary loss is separated into (i) the amount representing the credit loss and (ii) the amount related to all other factors. The credit loss is primarily based on the underlying ratings of the securities and is recognized in earnings, and the remaining amount is recorded in other comprehensive income. This is the approach we used to recognize the OTTI taken prior to liquidation in the first quarter of 2012. The amount representing the credit loss was recognized in earnings, and since circumstances (a) and (b) above were not present, the remaining amount was recorded in other comprehensive income. | ||||||||||||||||||
Due to our belief that it would have taken more than twelve months for the auction rate securities market to recover, these securities were classified as long-term assets, except for those that were scheduled to be redeemed within a twelve month period, which were classified as short-term investments. | ||||||||||||||||||
Since par value redemptions had recently slowed with no clear path for full redemption over the next several years and the rate of return on these securities being very low, management determined that a discounted redemption in the first quarter of 2012 was in the best interests of the Company as the related cash could be better utilized for other purposes going forward. | ||||||||||||||||||
The reconciliation of our assets measured at fair value on a recurring basis using unobservable inputs (Level 3) was as follows: | ||||||||||||||||||
(Dollars in thousands) | Auction Rate | |||||||||||||||||
Securities | ||||||||||||||||||
Balance at December 31, 2011 | $ | 25,960 | ||||||||||||||||
Cash received for redemptions at par | (25,438 | ) | ||||||||||||||||
Reclassified from other comprehensive income | 2,723 | |||||||||||||||||
Reported in earnings | (3,245 | ) | ||||||||||||||||
Balance at September 30, 2012 | $ | — | ||||||||||||||||
There were no credit losses recognized for the nine months ended September 30, 2012. | ||||||||||||||||||
Derivatives Contracts | ||||||||||||||||||
We are exposed to certain risks related to our ongoing business operations. The primary risks being managed through the use of derivative instruments are foreign currency exchange rate risk, commodity pricing risk (primarily related to copper) and interest rate risk. | ||||||||||||||||||
• | Foreign Currency - The fair value of any foreign currency option derivative is based upon valuation models applied to current market information such as strike price, spot rate, maturity date and volatility, and established by an over-the-counter market or obtaining market data for similar instruments with similar characteristics. The fair value of any forward contract is based on the difference between the contract rate and the spot rate at the end of the reporting period. | |||||||||||||||||
• | Commodity - The fair value of copper derivatives is computed using a combination of intrinsic and time value valuation models. The intrinsic valuation model reflects the difference between the strike price of the underlying copper derivative instrument and the current prevailing copper prices in an over-the-counter market at period end. The time value valuation model incorporates the constant changes in the price of the underlying copper derivative instrument, the time value of money, the underlying copper derivative instrument's strike price and the remaining time to the underlying copper derivative instrument's expiration date from the period end date. Overall, fair value is a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate, and volatility. | |||||||||||||||||
• | Interest Rates - The fair value of interest rate swap instruments is derived by comparing the present value of the interest rate forward curve against the present value of the swap rate, relative to the notional amount of the swap. The net value represents the estimated amount we would receive or pay to terminate the agreements. Settlement amounts for an "in the money" swap would be adjusted down to compensate the counterparty for cost of funds, and the adjustment is directly related to the counterparties' credit ratings. | |||||||||||||||||
We do not use derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||
For further discussion on our derivative contracts, see Note 3 - "Hedging Transactions and Derivative Financial Instruments" below. | ||||||||||||||||||
Pension Assets | ||||||||||||||||||
Our pension assets are stated at fair value on an annual basis and there are categories of assets in Level 1, 2 and 3 of the fair value hierarchy. During the second quarter of 2013, we made the decision to freeze the accumulation of benefits related to our defined benefit pension plans. This event required a fair value measurement of the pension assets as of April 30, 2013 and those are the values presented in this Form 10-Q. See further discussion in Note 8 - “Pension Benefits and Other Postretirement Benefit Plans”. |
Hedging_Transactions_and_Deriv
Hedging Transactions and Derivative Financial Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Hedging Transactions and Derivative Financial Instruments | Hedging Transactions and Derivative Financial Instruments | ||||||||||
The guidance for the accounting and disclosure of derivatives and hedging transactions requires companies to recognize all of their derivative instruments as either assets or liabilities at fair value in the statements of financial position. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies for special hedge accounting treatment as defined under the applicable accounting guidance. For derivative instruments that are designated and qualify for hedge accounting treatment (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss). This gain or loss is reclassified into earnings in the same line item of the statements of income (loss) associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of the future cash flows of the hedged item (i.e., the ineffective portion) if any, is recognized in the statements of income (loss) during the current period. For the three and nine month periods ended September 30, 2013 and 2012, there was no hedge ineffectiveness. | |||||||||||
We currently have thirteen outstanding contracts to hedge exposure related to the purchase of copper at our German subsidiary, Curamik, and U.S. operations in Arizona. These contracts are held with financial institutions and minimize the risk associated with a potential rise in copper prices. These contracts cover the 2013 and 2014 monthly copper exposure and do not qualify for hedge accounting treatment; therefore, any mark-to-market adjustments required on these contracts is recorded in the "Other income, net" line item in our condensed consolidated statements of income (loss). | |||||||||||
In 2012, we entered into Euro currency forward contracts to mitigate the exposure in the U.S. for pending Euro-denominated purchases. These contracts do not qualify for hedge accounting treatment and therefore, any mark-to-market adjustments on these contracts are recorded in the "Other income, net" line item in our condensed consolidated statements of income (loss). | |||||||||||
During the nine months ended September 30, 2013, we entered into Japanese Yen, Euro, U.S Dollar and Hungarian Forint currency forward contracts to mitigate certain global balance sheet exposures. These contracts do not qualify for hedge accounting treatment, therefore, any mark-to-market adjustment on these contracts are recorded in the "Other income, net" line item in our condensed consolidated statements of income (loss). | |||||||||||
Also in 2012, we entered into an interest rate swap derivative instrument to hedge the variable LIBOR portion of the interest rate on 65% of the term loan debt then outstanding, effective July 2013. This transaction has been designated as a cash flow hedge and qualifies for hedge accounting treatment. At September 30, 2013, the term loan debt of $81.3 million represents all of our total outstanding debt. At September 30, 2013, the rate charged on this debt is the 1 month LIBOR at 0.1875% plus a spread of 2.00%. | |||||||||||
Notional Value of Copper Derivatives | Notional Values of Foreign Currency Derivatives | ||||||||||
January 2013 - December 2013 | 55 | metric tons per month | YEN/USD | ¥350,000,000 | |||||||
July 2013 - November 2013 | 40 | metric tons per month | HUF/EUR | 290,000,000 | |||||||
December 2013 - March 2014 | 30 | metric tons per month | |||||||||
January 2014 - April 2014 | 30 | metric tons per month | |||||||||
September 2013 - December 2013 | 30 | metric tons per month | |||||||||
January 2014 - June 2014 | 75 | metric tons per month | |||||||||
January 2014 - December 2014 | 10 | metric tons per month | |||||||||
April 2014 - June 2014 | 35 | metric tons per month | |||||||||
May 2014 - December 2014 | 30 | metric tons per month | |||||||||
July 2014 - September 2014 | 40 | metric tons per month | |||||||||
July 2014 - December 2014 | 35 | metric tons per month | |||||||||
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the period ended September 30, 2013 | ||||||||||
Amount of gain (loss) | |||||||||||
Location of gain (loss) | Three months ended | Nine months ended | |||||||||
Foreign Exchange Contracts | |||||||||||
Contracts not designated as hedging instruments | Other income, net | $ | 28 | $ | 224 | ||||||
Copper Derivative Instruments | |||||||||||
Contracts not designated as hedging instruments | Other income, net | (33 | ) | (378 | ) | ||||||
Interest Rate Swap Instrument | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | (82 | ) | 30 | |||||||
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the period ended September 30, 2012 | ||||||||||
Amount of gain (loss) | |||||||||||
Location of gain (loss) | Three months ended | Nine months ended | |||||||||
Foreign Exchange Contracts | |||||||||||
Contracts not designated as hedging instruments | Other income, net | $ | 28 | $ | 109 | ||||||
Copper Derivative Instruments | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | (191 | ) | (2 | ) | ||||||
Contracts not designated as hedging instruments | Other income, net | 5 | 5 | ||||||||
Interest Rate Swap Instrument | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | (355 | ) | (355 | ) | ||||||
Concentration of Credit Risk | |||||||||||
By using derivative instruments, we are subject to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, our credit risk will equal the fair value of the derivative instrument. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a receivable risk for the Company. We minimize counterparty credit (or repayment) risk by entering into derivative transactions with major financial institutions with investment grade credit ratings. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories were as follows: | ||||||||
(Dollars in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Raw materials | $ | 26,987 | $ | 29,064 | ||||
Work-in-process | 15,876 | 13,154 | ||||||
Finished goods | 22,920 | 30,960 | ||||||
Total Inventory | $ | 65,783 | $ | 73,178 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
The changes of accumulated other comprehensive income (loss) by component at September 30, 2013 were as follows: | ||||||||||||||||||||
(Dollars in thousands) | Foreign currency translation adjustments | Funded status of pension plans and other postretirement benefits (1) | Unrealized gain (loss) on derivative instruments (2) | Total | ||||||||||||||||
Beginning Balance December 31, 2012 | $ | 12,585 | $ | (70,158 | ) | $ | (235 | ) | $ | (57,808 | ) | |||||||||
Other comprehensive income before reclassifications | 4,877 | — | 19 | 4,896 | ||||||||||||||||
Actuarial net gain (loss) incurred in the fiscal year | — | 17,225 | — | 17,225 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 3,107 | — | 3,107 | ||||||||||||||||
Net current-period other comprehensive income | 4,877 | 20,332 | 19 | 25,228 | ||||||||||||||||
Ending Balance September 30, 2013 | $ | 17,462 | $ | (49,826 | ) | $ | (216 | ) | $ | (32,580 | ) | |||||||||
(1) Net of taxes of $11,423 and $22,371 for the periods ended September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(2) Net of taxes of $116 and $127 for the periods ended September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
The changes of accumulated other comprehensive income (loss) by component at September 30, 2012 were as follows: | ||||||||||||||||||||
(Dollars in thousands) | Foreign currency translation adjustments | Funded status of pension plans and other postretirement benefits (3) | Unrealized gain (loss) on derivative instruments (4) | Unrealized gain (loss) on marketable securities (5) | Total | |||||||||||||||
Beginning Balance December 31, 2011 | $ | 5,875 | $ | (67,239 | ) | $ | (270 | ) | $ | (1,168 | ) | $ | (62,802 | ) | ||||||
Other comprehensive income before reclassifications | 530 | — | (84 | ) | — | 446 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 4,171 | — | 1,168 | 5,339 | |||||||||||||||
Net current-period other comprehensive income | 530 | 4,171 | (84 | ) | 1,168 | 5,785 | ||||||||||||||
Ending Balance September 30, 2012 | $ | 6,405 | $ | (63,068 | ) | $ | (354 | ) | $ | — | $ | (57,017 | ) | |||||||
(3) Net of taxes of 18,553 and $20,799 for the periods ended September 30, 2012 and December 31, 2011, respectively. | ||||||||||||||||||||
(4) Net of taxes of $0 and $0 for the periods ended September 30, 2012 and December 31, 2011, respectively. | ||||||||||||||||||||
(5) Net of taxes of $1,555 for the period ended December 31, 2011. | ||||||||||||||||||||
The reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 were as follows: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) for the period ended September 30, 2013 | ||||||||||||||||||||
Details about accumulated other comprehensive income components | Three months ended | Nine months ended | Affected line item in the statement where net income is presented | |||||||||||||||||
Amortization of defined benefit pension and other post-retirement benefit items: | ||||||||||||||||||||
Prior service costs | $ | — | $ | 1,545 | -6 | |||||||||||||||
Actuarial losses | 545 | 3,235 | -6 | |||||||||||||||||
545 | 4,780 | Total before tax | ||||||||||||||||||
(191 | ) | (1,673 | ) | Tax (benefit) expense | ||||||||||||||||
$ | 354 | $ | 3,107 | Net of tax | ||||||||||||||||
(6) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 8 - "Pension Benefits and Other Postretirement Benefit Plans" for additional details. | ||||||||||||||||||||
The reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2012 were as follows: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) for the period ended September 30, 2012 | ||||||||||||||||||||
Details about accumulated other comprehensive income components | Three months ended | Nine months ended | Affected line item in the statement where net income is presented | |||||||||||||||||
Unrealized gains and losses on marketable securities | ||||||||||||||||||||
$ | — | $ | (2,723 | ) | Realized gain (loss) | |||||||||||||||
— | 1,555 | Tax benefit (expense) | ||||||||||||||||||
$ | — | $ | (1,168 | ) | Net of tax | |||||||||||||||
Amortization of defined benefit pension and other post-retirement benefit items: | ||||||||||||||||||||
Prior service costs | $ | 3 | $ | 9 | -6 | |||||||||||||||
Actuarial losses | 3,436 | 6,408 | -6 | |||||||||||||||||
3,439 | 6,417 | Total before tax | ||||||||||||||||||
1,204 | 2,246 | Tax benefit (expense) | ||||||||||||||||||
$ | 2,235 | $ | 4,171 | Net of tax | ||||||||||||||||
(6) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 8 - "Pension Benefits and Other Postretirement Benefit Plans" for additional details. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share, for the periods indicated: | ||||||||||||||||
(In thousands, except per share amounts) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Income (loss) from continuing operations | $ | 13,572 | $ | 59,124 | $ | 26,132 | $ | 63,955 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - | ||||||||||||||||
Weighted-average shares | 17,245 | 16,485 | 17,142 | 16,342 | ||||||||||||
Effect of dilutive stock options | 618 | 539 | 570 | 561 | ||||||||||||
Denominator for diluted earnings per share - Adjusted | ||||||||||||||||
weighted-average shares and assumed conversions | 17,863 | 17,024 | 17,712 | 16,903 | ||||||||||||
Basic income (loss) from continuing operations per share: | $ | 0.79 | $ | 3.59 | $ | 1.52 | $ | 3.91 | ||||||||
Diluted income (loss) from continuing operations per share: | 0.76 | 3.47 | 1.48 | 3.78 | ||||||||||||
Certain potential ordinary dilutive shares were excluded from the calculation of diluted weighted-average shares outstanding because they would have an anti-dilutive effect on net income per share (see table below). | ||||||||||||||||
Three Months Ended | ||||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Anti-dilutive shares excluded | — | 23,200 | ||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
Equity Compensation Awards | |||||||||||||
Stock Options | |||||||||||||
Stock options have been granted under various equity compensation plans. While we may grant options to employees that become exercisable at different times or within different periods, we have generally granted options to employees that vest and become exercisable in one-third increments on the second, third and fourth anniversaries of the grant dates. The maximum contractual term for all options is normally ten years. | |||||||||||||
We use the Black-Scholes option-pricing model to calculate the grant-date fair value of an option. We did not grant any stock options in the nine months ended September 30, 2013, or in the third quarter of 2012. The fair value of options granted during the nine month period ended September 30, 2012 were calculated using the following weighted-average assumptions: | |||||||||||||
September 30, | |||||||||||||
2012 | |||||||||||||
Options granted | 46,950 | ||||||||||||
Weighted average exercise price | $ | 41.27 | |||||||||||
Weighted-average grant date fair value | 19.08 | ||||||||||||
Assumptions: | |||||||||||||
Expected volatility | 47.7 | % | |||||||||||
Expected term (in years) | 5.9 | ||||||||||||
Risk-free interest rate | 1.43 | % | |||||||||||
Expected dividend yield | — | ||||||||||||
Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility and implied volatility. | |||||||||||||
Expected term – We use historical employee exercise data to estimate the expected term assumption for the Black-Scholes valuation. | |||||||||||||
Risk-free interest rate – We use the yield on zero-coupon U.S. Treasury securities for a period commensurate with the expected term assumption as its risk-free interest rate. | |||||||||||||
Expected dividend yield – We do not currently pay dividends on our common stock; therefore, a dividend yield of 0% was used in the Black-Scholes model. | |||||||||||||
In most cases, we recognize expense using the straight-line method for stock option grants. The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered option. We currently expect, based on an analysis of our historical forfeitures, an annual forfeiture rate of approximately 3% and applied that rate to the grants issued. This assumption will be reviewed periodically and the rate will be adjusted as necessary based on these reviews. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. | |||||||||||||
During the three and nine month periods ended September 30, 2013, we recognized approximately $0.3 million of income and $0.3 million of expense, respectively, related to stock options. Income was recognized in the third quarter of 2013, of $0.7 million, due to an adjustment to expense related to employee terminations in previous years based on historical activity to ensure that the amount expensed is only for options that ultimately vest and not for those options that are forfeited. This income was reduced during the quarter, as an officer left the company, resulting in the forfeiture of two stock option grants and the modification of one stock option grant resulting in $0.2 million of expense, net. During the three and nine month periods ended September 30, 2012, we recognized approximately $0.4 million and $1.7 million of stock option compensation expense, respectively. | |||||||||||||
A summary of the activity under our stock option plans as of September 30, 2013 and changes during the three and nine month periods then ended, is presented below: | |||||||||||||
Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted-Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | ||||||||||
Options outstanding at June 30, 2013 | 1,503,873 | $ | 42.26 | 3.7 | $ | 12,388,067 | |||||||
Options granted | — | — | |||||||||||
Options exercised | (461,081 | ) | 38.94 | ||||||||||
Options forfeited | (13,617 | ) | 42.43 | ||||||||||
Options outstanding at September 30, 2013 | 1,029,175 | 43.75 | 3.9 | 16,452,670 | |||||||||
Options exercisable at September 30, 2013 | 831,692 | 45.32 | 3.2 | 12,038,245 | |||||||||
Options vested or expected to vest at September 30, 2013* | 1,023,251 | 43.78 | 3.9 | 16,320,237 | |||||||||
* In addition to the vested options, we expect a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
Weighted- | |||||||||||||
Average | |||||||||||||
Options | Exercise Price | ||||||||||||
Outstanding | Per Share | ||||||||||||
Options outstanding at December 31, 2012 | 1,765,947 | $ | 40.58 | ||||||||||
Options granted | — | — | |||||||||||
Options exercised | (712,321 | ) | 36.04 | ||||||||||
Options forfeited | (24,451 | ) | 39.49 | ||||||||||
Options outstanding at September 30, 2013 | 1,029,175 | ||||||||||||
During the nine month period ended September 30, 2013, the total intrinsic value of options exercised (i.e., the difference between the market price at time of exercise and the price paid by the individual to exercise the options) was $11.7 million, and the total amount of cash received from the exercise of these options was $26.0 million. | |||||||||||||
Performance-Based Restricted Stock | |||||||||||||
In 2006, we began granting performance-based restricted stock awards to certain key executives. We currently have awards from 2011, 2012 and 2013 outstanding. These awards cliff vest at the end of the three year measurement period, except for the 2011 and 2012 grants to those individuals who are retirement eligible during the grant period, as such awards are subject to accelerated vesting as the grant is earned over the course of the vesting period (i.e. a pro-rata payout occurs based on the actual retirement date if it occurs during the vesting period). Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined measurement criteria. Compensation expense is recognized using the straight-line method over the vesting period, unless the employee has an accelerated vesting schedule. | |||||||||||||
The 2011 and 2012 awards have three measurement criteria on which the final payout of the award is based - (i) the three year compounded annual growth rate (CAGR) of net sales, (ii) the three year CAGR of diluted earnings per share, and (iii) the three year average of each year's free cash flow as a percentage of net sales. In accordance with the applicable accounting literature, these measures are treated as performance conditions. The fair value of these awards is determined based on the market value of the underlying stock price at the grant date with cumulative compensation expense recognized to date being increased or decreased based on changes in the forecasted pay out percentages at the end of each reporting period. | |||||||||||||
The 2013 award has two measurement criteria on which the final payout of the award is based - (i) the three year return on invested capital (ROIC) compared to that of a specified group of peer companies, and (ii) the three year total shareholder return (TSR) on the performance of our common stock as compared to that of a specified group of peer companies. In accordance with the applicable accounting literature, the ROIC portion of the award is considered a performance condition. As such, the fair value of this award is determined based on the market value of the underlying stock price at the grant date with cumulative compensation expense recognized to date being increased or decreased based on changes in the forecasted pay out percentage at the end of each reporting period. The TSR portion of the award is considered a market condition. As such, the fair value of this award was determined on the date of grant using a Monte Carlo simulation valuation model with related compensation expense fixed on the grant date and expensed on a straight-line basis over the life of the awards that ultimately vest with no changes for the final projected payout of the award. | |||||||||||||
Below are the assumptions used in the Monte Carlo calculation: | |||||||||||||
Expected volatility | 37.1 | % | |||||||||||
Expected term (in years) | 3 | ||||||||||||
Risk-free interest rate | 0.4 | % | |||||||||||
Expected dividend yield | — | ||||||||||||
Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility. | |||||||||||||
Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model. | |||||||||||||
Risk-free interest rate – We use an implied "spot rate" yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate. | |||||||||||||
Expected dividend yield – We do not currently pay dividends on our common stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model. | |||||||||||||
Actual performance during the relevant period for the 2010 award, which vested as of December 31, 2012, met the target performance criteria and shares were paid out at 200.0% of target during the first quarter of 2013. | |||||||||||||
Performance-Based Restricted Stock Awards | |||||||||||||
Non-vested awards outstanding at December 31, 2012 | 73,458 | ||||||||||||
Awards granted | 48,660 | ||||||||||||
Stock issued | (33,538 | ) | |||||||||||
Awards forfeited | (15,222 | ) | |||||||||||
Non-vested awards outstanding at September 30, 2013 | 73,358 | ||||||||||||
During the three and nine month periods ended September 30, 2013, we recognized expense for performance-based restricted stock awards of approximately $0.5 million and $0.6 million, respectively. During the three and nine month periods ended September 30, 2012, due to reductions in the estimated payout percentages of outstanding grants, we recognized expense for performance-based restricted stock awards of approximately $0.2 million and income of approximately $0.2 million, respectively. | |||||||||||||
Time-Based Restricted Stock | |||||||||||||
In 2011, we began granting time-based restricted stock awards to certain key executives and other key members of the Company’s management team. We currently have grants from 2011, 2012 and 2013 outstanding. The 2011 and 2012 grants cliff vest at the end of the three year vesting period. The 2013 grants ratably vest on the first, second and third anniversaries of the original grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. The fair value of the award is determined based on the market value of the underlying stock price at the grant date. | |||||||||||||
Time-Based Restricted Stock Awards | |||||||||||||
Non-vested awards outstanding at December 31, 2012 | 115,139 | ||||||||||||
Awards granted | 152,380 | ||||||||||||
Stock issued | (7,136 | ) | |||||||||||
Awards forfeited | (24,492 | ) | |||||||||||
Non-vested awards outstanding at September 30, 2013 | 235,891 | ||||||||||||
During the three and nine month periods ended September 30, 2013, we recognized compensation expense for time-based restricted stock awards of approximately $1.2 million and $1.8 million, respectively. During the three and nine month periods ended September 30, 2012, we recognized compensation expense for time-based restricted stock awards of approximately $0.4 million and $1.2 million, respectively. | |||||||||||||
Deferred Stock Units | |||||||||||||
We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 13th month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ stock. The grant of deferred stock units is typically done annually in the second quarter of each year. The fair value of the award is determined based on the market value of the underlying stock price at the grant date. | |||||||||||||
Deferred Stock | |||||||||||||
Units | |||||||||||||
Awards outstanding at December 31, 2012 | 30,150 | ||||||||||||
Awards granted | 16,800 | ||||||||||||
Stock issued | (15,400 | ) | |||||||||||
Awards outstanding at September 30, 2013 | 31,550 | ||||||||||||
For each of the nine month periods ended September 30, 2013 and 2012, we recognized compensation expense of $0.7 million related to deferred stock units. There was no expense associated with these deferred stock units in either the third quarter of 2013 or 2012. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
We have an employee stock purchase plan (ESPP) that allows eligible employees to purchase, through payroll deductions, shares of our common stock at a discount to fair market value. The ESPP has two six month offering periods each year, the first beginning in January and ending in June and the second beginning in July and ending in December. The ESPP contains a look-back feature that allows the employee to acquire stock at a 15% discount from the underlying market price at the beginning or end of the applicable period, whichever is lower. We recognize compensation expense on this plan ratably over the offering period based on the fair value of the anticipated number of shares that will be issued at the end of each offering period. Compensation expense is adjusted at the end of each offering period for the actual number of shares issued. Fair value is determined based on two factors: (i) the 15% discount amount on the underlying stock’s market value on the first day of the applicable offering period and (ii) the fair value of the look-back feature determined by using the Black-Scholes model. We recognized approximately $0.1 million of compensation expense associated with the plan for each of the three month periods ended September 30, 2013 and 2012, respectively, and approximately $0.3 million of compensation expense associated with the plan for each of the nine month periods ended September 30, 2013 and 2012, respectively. |
Pension_Benefit_and_Other_Post
Pension Benefit and Other Postretirement Benefit Plans | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Pension Benefit and Other Postretirement Benefit Plans | Pension Benefits and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||
We have two qualified noncontributory defined benefit pension plans. One plan covers our U.S. unionized hourly employees and the other plan covers all other U.S. employees hired through December 30, 2007. We also have established a nonqualified unfunded noncontributory defined benefit pension plan to restore certain retirement benefits that might otherwise be lost due to limitations imposed by federal law on qualified pension plans, as well as to provide supplemental retirement benefits, for certain senior executives of the Company. | ||||||||||||||||||||||||||||||||
We are required, as an employer, to: (a) recognize in our statement of financial position an asset for a plan's overfunded status or a liability for a plan's underfunded status; (b) measure a plan's assets and our obligations that determine our funded status as of the end of the fiscal year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur and report these changes in accumulated other comprehensive income. In addition, actuarial gains and losses that are not immediately recognized as net periodic pension cost are recognized as a component of accumulated other comprehensive income and amortized into net periodic pension cost in future periods. | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan Amendments | ||||||||||||||||||||||||||||||||
In the second quarter of 2013, we made changes to our retirement plans in order to better plan and manage related expenses which have a significant and variable impact on earnings. Effective June 30, 2013, for salaried and non-union hourly employees in the U.S. and effective December 31, 2013 for union employees in the U.S., benefits under our defined benefit pension plans will no longer accrue. The freeze of the defined benefit pension plan for salaried and non-union hourly employees was approved by the Board of Directors on May 3, 2013. The freeze of the union employees' defined benefit pension plan was approved upon ratification of the labor agreement on April 14, 2013. These changes resulted in a remeasurement event requiring us to remeasure the plan asset and liabilities, as well as the expense related to the plans, as of April 30, 2013. This date was considered the accounting date, per the related accounting guidance, for purposes of this analysis as it was reasonably close to the approval dates of these changes for both the union and salaried plans. | ||||||||||||||||||||||||||||||||
On July 16, 2007, we announced to our employees and retirees that the defined benefit pension plan for non-union employees and the retiree medical plans would be amended effective January 1, 2008. As of January 1, 2008, newly hired and rehired employees were no longer eligible to participate in the defined benefit pension plan. However, the amendment to the defined benefit pension plan did not impact the benefits to existing plan participants as of December 30, 2007. | ||||||||||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
Change in benefit obligation: | 30-Jun-13 | |||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 209,844 | ||||||||||||||||||||||||||||||
Service cost | 2,210 | |||||||||||||||||||||||||||||||
Interest cost | 4,015 | |||||||||||||||||||||||||||||||
Actuarial (gain) loss | 1,658 | |||||||||||||||||||||||||||||||
Benefit payments | (3,642 | ) | ||||||||||||||||||||||||||||||
Curtailment charge | (22,649 | ) | ||||||||||||||||||||||||||||||
Special termination benefit | — | |||||||||||||||||||||||||||||||
Benefit obligation at end of the period | $ | 191,436 | ||||||||||||||||||||||||||||||
(1) This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
Change in plan assets: | 30-Jun-13 | |||||||||||||||||||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 143,540 | ||||||||||||||||||||||||||||||
Actual return on plan assets | 10,981 | |||||||||||||||||||||||||||||||
Employer contributions | 6,500 | |||||||||||||||||||||||||||||||
Benefit payments | (3,642 | ) | ||||||||||||||||||||||||||||||
Settlement charge | — | |||||||||||||||||||||||||||||||
Fair value of plan assets at the end of the period | 157,379 | |||||||||||||||||||||||||||||||
Funded status | $ | (34,057 | ) | |||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheet consist of: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | ||||||||||||||||||||||||||||||
Current liabilities | (49 | ) | ||||||||||||||||||||||||||||||
Noncurrent liabilities | (34,008 | ) | ||||||||||||||||||||||||||||||
Net amount recognized at end of period | $ | (34,057 | ) | |||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 58,860 | ||||||||||||||||||||||||||||||
Prior service cost | — | |||||||||||||||||||||||||||||||
Net amount recognized at end of period | $ | 58,860 | ||||||||||||||||||||||||||||||
(1) This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with an accumulated benefit obligation in excess of plan assets were $191.4 million, $191.4 million and $157.4 million, respectively, as of June 30, 2013. | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for the periods indicated are: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension Benefits | Retirement Health and Life Insurance Benefits | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
Change in benefit obligation: | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||
Service cost | $ | 132 | $ | 1,150 | $ | 2,342 | $ | 3,447 | $ | 143 | $ | 149 | $ | 484 | $ | 481 | ||||||||||||||||
Interest cost | 1,869 | 2,094 | 5,884 | 6,336 | 61 | 92 | 202 | 272 | ||||||||||||||||||||||||
Expected return on plan assets | (2,900 | ) | (2,495 | ) | (8,347 | ) | (7,397 | ) | — | — | — | — | ||||||||||||||||||||
Amortization of prior service cost | — | 116 | 124 | 347 | — | (113 | ) | (115 | ) | (338 | ) | |||||||||||||||||||||
Amortization of net loss | 545 | 1,347 | 3,070 | 4,138 | — | 66 | 165 | 247 | ||||||||||||||||||||||||
Special termination benefit | — | — | — | — | — | — | — | 1,593 | ||||||||||||||||||||||||
Settlement charge | — | 2,023 | — | 2,023 | — | — | — | — | ||||||||||||||||||||||||
Curtailment charge | — | — | 1,537 | — | — | — | — | — | ||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (354 | ) | $ | 4,235 | $ | 4,610 | $ | 8,894 | $ | 204 | $ | 194 | $ | 736 | $ | 2,255 | |||||||||||||||
The decisions made in the second quarter of 2013 related to the defined benefit pension plans resulted in a curtailment charge of $1.5 million that was recognized in the second quarter of 2013 in "Restructuring and impairment charges" in our condensed consolidated statements of income (loss). | ||||||||||||||||||||||||||||||||
In the third quarter of 2012, we made a one-time cash payment to our former President and Chief Executive Officer of approximately $6.3 million in accordance with the provisions of his retirement contract related to his participation in the Pension Restoration Plan. This payment resulted in a settlement charge of approximately $2.0 million, which was recognized in the third quarter of 2012. | ||||||||||||||||||||||||||||||||
As a result of the early retirement program that we offered in the first quarter of 2012, we incurred a charge of $1.6 million related to a special termination benefit in the first nine months of 2012 associated with our retirement health and life insurance benefits program, as we extended Plan eligibility to certain individuals who participated in the early retirement program. A charge of $2.3 million was recognized in the first quarter of 2012 related to this event that was adjusted in the second quarter of 2012, as the final calculation resulted in a total charge of $1.6 million, resulting in us recognizing income in the second quarter of 2012 of $0.7 million. | ||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations for pension benefits (2): | ||||||||||||||||||||||||||||||||
30-Apr-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4 | % | ||||||||||||||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | ||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net benefit cost for pension benefits for the period ended (2): | ||||||||||||||||||||||||||||||||
30-Apr-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.5 | % | ||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.75 | % | ||||||||||||||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | ||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
Long-term rate of return on assets - To determine the expected long-term rate of return on plan assets, we review historical and projected portfolio performance, the historical long-term rate of return, and how any change in the allocation of the assets could affect the anticipated returns. Adjustments are made to the projected rate of return if it is deemed necessary based on those factors and other current market trends. | ||||||||||||||||||||||||||||||||
Discount rate - To determine the discount rate, we review current market indices, particularly the Citigroup bond index, to ensure that the rate used in our calculations is consistent and within an acceptable range based on these indices, which reflect current market conditions. | ||||||||||||||||||||||||||||||||
Our defined benefit pension assets are invested with the objective of achieving a total rate of return over the long-term that is sufficient to fund future pension obligations. In managing these assets and our investment strategy, we take into consideration future cash contributions to the plans, as well as the potential of the portfolio underperforming the market, which we try to mitigate by maintaining a diversified portfolio of assets. | ||||||||||||||||||||||||||||||||
In order to meet our investment objectives, we set asset allocation target ranges based on current funding status and future projections in order to mitigate the risk in the plan while maintaining its funded status. At April 30, 2013, we held approximately 57% equity securities and 43% debt securities in our portfolio, which is consistent with our allocation targets. In order to further mitigate risk, in the future we plan to migrate to a portfolio more heavily weighted toward debt securities as our plan assets approach the projected benefit obligation. | ||||||||||||||||||||||||||||||||
In determining our investment strategy and calculating our plan liability and related expense, we utilize an expected long-term rate of return on plan assets. This rate is developed based on several factors, including the plans' asset allocation targets, the historical and projected performance on those asset classes, and on the plans' current asset composition. To justify our assumptions, we analyze certain data points related to portfolio performance. For example, we analyze the actual historical performance of our total plan assets, which has generated a return of approximately 8.6% over the past 16 year period (earliest data available for our analysis was 1996). Also, we analyze hypothetical rates of return for plan assets based on our current asset allocation mix, which we estimate would have generated a return of approximately 10.2% over the last 30 years, 8.1% over the last 20 years, and 8.0% over the last 10 years. Further, based on the hypothetical historic returns, we estimated the potential return associated with the plan asset portfolio over the next 10 to 15 year period based on the portfolio mix, which we determined to be approximately 7.3% to 7.8% (approximately 9.5% to 11.0% on equity securities and 3.50% to 4.50% on fixed income securities). | ||||||||||||||||||||||||||||||||
Investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). | ||||||||||||||||||||||||||||||||
Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the plan year. The fair value of the guaranteed deposit account is determined through discounting expected future investment cash flow from both investment income and repayment of principal for each investment purchased. | ||||||||||||||||||||||||||||||||
The estimated fair values of the participation units owned by the plan in pooled separate accounts are based on quoted redemption values and adjusted for management fees and asset charges, as determined by the record keeper, on the last business day of the plan year. Pooled separate accounts are accounts established solely for the purpose of investing the assets of one or more plans. Funds in a separate account are not commingled with our other assets for investment purposes. | ||||||||||||||||||||||||||||||||
The following table presents the fair value of the net assets by asset category (2): | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-Apr-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Pooled separate accounts | $ | 33,530 | $ | 29,869 | ||||||||||||||||||||||||||||
Mutual funds | 106,619 | 98,269 | ||||||||||||||||||||||||||||||
Guaranteed deposit account | 16,592 | 15,402 | ||||||||||||||||||||||||||||||
Total investments at fair value | $ | 156,741 | $ | 143,540 | ||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value (2): | ||||||||||||||||||||||||||||||||
Assets at Fair Value as of April 30, 2013 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Pooled separate accounts | $ | — | $ | 33,530 | $ | — | $ | 33,530 | ||||||||||||||||||||||||
Mutual funds | 106,619 | — | — | 106,619 | ||||||||||||||||||||||||||||
Guaranteed deposit account | — | — | 16,592 | 16,592 | ||||||||||||||||||||||||||||
Total assets at fair value | $ | 106,619 | $ | 33,530 | $ | 16,592 | $ | 156,741 | ||||||||||||||||||||||||
Assets at Fair Value as of December 31, 2012 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Pooled separate accounts | $ | — | $ | 29,869 | $ | — | $ | 29,869 | ||||||||||||||||||||||||
Mutual funds | 98,269 | — | — | 98,269 | ||||||||||||||||||||||||||||
Guaranteed deposit account | — | — | 15,402 | 15,402 | ||||||||||||||||||||||||||||
Total assets at fair value | $ | 98,269 | $ | 29,869 | $ | 15,402 | $ | 143,540 | ||||||||||||||||||||||||
The table below sets forth a summary of changes in the fair value of the guaranteed deposit account's Level 3 assets for the period ended April 30, 2013. (2) | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Guaranteed Deposit Account | |||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 15,402 | ||||||||||||||||||||||||||||||
Realized gains (losses) | — | |||||||||||||||||||||||||||||||
Unrealized gains relating to instruments still held at the reporting date | 1,177 | |||||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements (net) | 13 | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||
Balance at April 30, 2013 | $ | 16,592 | ||||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
Employer Contributions | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 and 2012, we made voluntary contributions of $13.0 million and $16.0 million, respectively, to our qualified defined benefit pension plans. | ||||||||||||||||||||||||||||||||
We did not make any contributions to our non-qualified defined benefit pension plan for the nine months ended September 30, 2013. We made $6.3 million in contributions to our non-qualified defined benefit pension plan for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||||||||||
Estimated Future Payments | ||||||||||||||||||||||||||||||||
The following pension benefit payments, which reflect expected future employee service, as appropriate, are expected to be paid through the utilization of plan assets for the funded plans and from operating cash flows for the unfunded plans. The benefit payments are based on the same assumptions used to measure our benefit obligation at April 30, 2013. | ||||||||||||||||||||||||||||||||
Pension Benefits (2) | ||||||||||||||||||||||||||||||||
2014 | $ | 8,441 | ||||||||||||||||||||||||||||||
2015 | 8,029 | |||||||||||||||||||||||||||||||
2016 | 8,209 | |||||||||||||||||||||||||||||||
2017 | 8,303 | |||||||||||||||||||||||||||||||
2018 | 8,595 | |||||||||||||||||||||||||||||||
2019-2023 | 48,629 | |||||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
Our reporting structure is comprised of the following operating segments: High Performance Foams, Printed Circuit Materials, Curamik Electronics Solutions and Power Distribution Systems and the Other reportable segment. | ||||||||||||||||
Segment Structure | ||||||||||||||||
Core Strategic | ||||||||||||||||
High Performance Foams | ||||||||||||||||
Printed Circuit Materials | ||||||||||||||||
Power Electronics Solutions | ||||||||||||||||
Curamik Electronics Solutions | ||||||||||||||||
Power Distribution Systems | ||||||||||||||||
Other | ||||||||||||||||
The “Power Electronics Solutions” core strategic category is comprised of two operating segments – Curamik Electronics Solutions and Power Distribution Systems. | ||||||||||||||||
The following table sets forth the information about our reportable segments for the periods indicated: | ||||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales | ||||||||||||||||
Core Strategic | ||||||||||||||||
High Performance Foams | $ | 44,460 | $ | 48,045 | $ | 126,839 | $ | 131,807 | ||||||||
Printed Circuit Materials | 47,105 | 43,437 | 136,253 | 123,352 | ||||||||||||
Power Electronics Solutions | ||||||||||||||||
Curamik Electronics Solutions | 32,137 | 22,050 | 83,951 | 70,250 | ||||||||||||
Power Distribution Systems | 13,191 | 9,395 | 36,460 | 31,484 | ||||||||||||
Other | 5,927 | 6,207 | 17,749 | 17,691 | ||||||||||||
Net sales | $ | 142,820 | $ | 129,134 | $ | 401,252 | $ | 374,584 | ||||||||
Operating income (loss) | ||||||||||||||||
Core Strategic | ||||||||||||||||
High Performance Foams | $ | 7,490 | $ | 8,848 | $ | 17,622 | $ | 16,001 | ||||||||
Printed Circuit Materials | 5,857 | 3,195 | 13,651 | 5,971 | ||||||||||||
Power Electronics Solutions | ||||||||||||||||
Curamik Electronics Solutions | 986 | (2,394 | ) | (4,650 | ) | (5,371 | ) | |||||||||
Power Distribution Systems | 2,824 | (325 | ) | 5,473 | (840 | ) | ||||||||||
Other | 1,852 | 1,005 | 5,835 | 3,078 | ||||||||||||
Operating income (loss) | 19,009 | 10,329 | 37,931 | 18,839 | ||||||||||||
Equity income in unconsolidated joint ventures | 1,754 | 1,773 | 3,045 | 3,735 | ||||||||||||
Other income (expense), net | (101 | ) | 19 | (867 | ) | 140 | ||||||||||
Net realized gain (loss) | — | — | — | (3,245 | ) | |||||||||||
Interest income (expense), net | (881 | ) | (1,104 | ) | (2,616 | ) | (3,366 | ) | ||||||||
Income (loss) before income tax expense (benefit) | $ | 19,781 | $ | 11,017 | $ | 37,493 | $ | 16,103 | ||||||||
Inter-segment sales have been eliminated from the sales data in the preceding table. |
Joint_Ventures
Joint Ventures | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||
Joint Ventures | Joint Ventures | |||||||||||||||
As of September 30, 2013, we had two joint ventures, each 50% owned, which are accounted for under the equity method of accounting. | ||||||||||||||||
Joint Venture | Location | Reportable Segment | Fiscal Year-End | |||||||||||||
Rogers INOAC Corporation (RIC) | Japan | High Performance Foams | October 31 | |||||||||||||
Rogers INOAC Suzhou Corporation (RIS) | China | High Performance Foams | December 31 | |||||||||||||
Equity income of $1.8 million and $3.0 million for the three and nine month periods ended September 30, 2013, respectively, and equity income of $1.8 million and $3.7 million for the three and nine month periods ended September 30, 2012, respectively, is included in the condensed consolidated statements of income (loss) related to the joint ventures. | ||||||||||||||||
The summarized financial information for the joint ventures for the periods indicated is as follows: | ||||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales | $ | 16,431 | $ | 20,004 | $ | 38,924 | $ | 48,383 | ||||||||
Gross profit (loss) | 4,989 | 5,973 | 10,189 | 13,517 | ||||||||||||
Net income (loss) | 3,508 | 3,546 | 6,090 | 7,470 | ||||||||||||
The effect of transactions between us and our unconsolidated joint ventures is accounted for on a consolidated basis. Receivables from and payables to joint ventures arise during the normal course of business from transactions between us and the joint ventures, typically from the joint venture purchasing raw materials from us to produce end products, which are sold to third parties, or from us purchasing finished goods from our joint ventures, which are then sold to third parties. |
Debt
Debt | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt | Debt | |||||||||||
On July 13, 2011, we entered into an amended and restated $265.0 million secured five year credit agreement. This credit agreement (“Amended Credit Agreement”) is with (i) JPMorgan Chase Bank, N.A., as administrative agent; (ii) HSBC Bank USA, National Association; (iii) RBS Citizens, National Association; (iv) Fifth Third Bank; and (v) Citibank, N.A. JPMorgan Securities LLC and HSBC Bank USA, National Association acted as joint bookrunners and joint lead arrangers; HSBC Bank USA, National Association and RBS Citizens, National Association acted as co-syndication agents; and Fifth Third Bank and Citibank, N.A. acted as co-documentation agents. The Amended Credit Agreement amends and restates the credit agreement signed between the Company and the same banks on November 23, 2010 and increased our borrowing capacity from $165.0 million under the original agreement to $265.0 million under the Amended Credit Agreement. | ||||||||||||
Key features of the Amended Credit Agreement, as compared to the November 23, 2010 credit agreement, include an increase in credit from $165.0 million to $265.0 million with the addition of a $100.0 million term loan; the extension of maturity from November 23, 2014 to July 13, 2016; a 25 basis point reduction in interest costs; an increase in the size of permitted acquisitions from $25.0 million to $100.0 million; and an increase in permitted additional indebtedness from $20.0 million to $120.0 million. | ||||||||||||
The Amended Credit Agreement provided for the extension of credit in the form of a $100.0 million term loan (which refinanced outstanding borrowings in the amount of $100.0 million from the existing revolving credit line), as further described below; and up to $165.0 million of revolving loans, in multiple currencies, at any time and from time to time until the maturity of the Amended Credit Agreement on July 13, 2016. We may borrow, pre-pay and re-borrow amounts under the $165.0 million revolving portion of the Amended Credit Agreement; however, with respect to the $100.0 million term loan portion, any principal amounts re-paid may not be re-borrowed. Borrowings may be used to finance working capital needs, for letters of credit and for general corporate purposes in the ordinary course of business, including the financing of permitted acquisitions (as defined in the Amended Credit Agreement). | ||||||||||||
Borrowings under the Amended Credit Agreement bear interest based on one of two options. Alternate base rate loans bear interest that includes a base reference rate plus a spread of 75 - 150 basis points, depending on our leverage ratio. The base reference rate is the greater of the prime rate; federal funds effective rate plus 50 basis points; and adjusted London interbank offered (“LIBO”) rate plus 100 basis points. Eurocurrency loans bear interest based on the adjusted LIBO rate plus a spread of 175 - 250 basis points, depending on our leverage ratio. | ||||||||||||
In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Amended Credit Agreement, the Company is required to pay a quarterly fee of 0.20% to 0.35% (based upon its leverage ratio) of the unused amount of the lenders’ commitments under the Amended Credit Agreement. | ||||||||||||
In connection with the Amended Credit Agreement, we transferred borrowings in the amount of $100.0 million from the revolving credit line under the November 23, 2010 credit agreement to the term loan under the Amended Credit Agreement. The Amended Credit Agreement requires the mandatory quarterly repayment of principal of amounts borrowed under such term loan. Payments commenced on September 30, 2011, and are scheduled to be completed on June 30, 2016. The aggregate mandatory principal payments due are as follows: | ||||||||||||
2011 | $2.50 | million | ||||||||||
2012 | $7.50 | million | ||||||||||
2013 | $12.50 | million | ||||||||||
2014 | $17.50 | million | ||||||||||
2015 | $35.00 | million | ||||||||||
2016 | $25.00 | million | ||||||||||
The Amended Credit Agreement is secured by many of the assets of Rogers and our World Properties, Inc, subsidiary, including but not limited to, receivables, equipment, intellectual property, inventory, stock in certain subsidiaries and real property. | ||||||||||||
As part of the Amended Credit Agreement, we are restricted in our ability to perform certain actions, including, but not limited to, our ability to pay dividends, incur additional debt, sell certain assets, and make capital expenditures, with certain exceptions. Further, we are currently required to maintain certain financial covenant ratios, including (i) a leverage ratio of no more than 3.0 to 1.0 and (ii) a minimum fixed charge coverage ratio (FCCR) as defined in the following table: | ||||||||||||
Period | Ratio | |||||||||||
March 31, 2012 to December 31, 2012 | 1.25 : 1.00 | |||||||||||
March 31, 2013 to December 31, 2013 | 1.50 : 1.00 | |||||||||||
March 31, 2014 and thereafter | 1.75 : 1.00 | |||||||||||
The FCCR is the ratio between Adjusted Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) and Consolidated Fixed Charges as defined in the Amended Credit Agreement, which measures our ability to cover the fixed charge obligations. The key components of Consolidated Fixed Charges are capital expenditures, scheduled debt payments, capital lease payments, rent and interest expenses. | ||||||||||||
Fixed Charge metrics are detailed in the table below. | ||||||||||||
Periods | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | Q3 2013 | |||||||
Covenant Limit | 1.25 | 1.25 | 1.5 | 1.5 | 1.5 | |||||||
Actual FCCR | 1.93 | 2.18 | 2.27 | 2.06 | 2.23 | |||||||
As of September 30, 2013, we were in compliance with all of our covenants, as we achieved actual ratios of approximately 1.03 on the leverage ratio and 2.23 on the fixed charge coverage ratio. | ||||||||||||
If an event of default occurs, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings to be immediately due and payable together with accrued interest and fees. | ||||||||||||
In connection with the establishment of the initial credit agreement in 2010, we capitalized approximately $1.6 million of debt issuance costs. We capitalized an additional $0.7 million of debt issuance costs in 2011 related to the Amended Credit Agreement, as amended. Also in connection with the Amended Credit Agreement, as amended, we capitalized an additional $0.1 million of debt issuance costs in the first quarter of 2012. These costs will be amortized over the life of the Amended Credit Agreement, as amended, which will expire in June 2016. | ||||||||||||
We incurred amortization expense of $0.1 million in each of the third quarters of 2013 and 2012, respectively, and expenses of $0.4 million in each of the first nine months of 2013 and 2012, respectively. At September 30, 2013, we have approximately $1.4 million of credit facility costs remaining to be amortized. | ||||||||||||
In the first quarter of 2011, we made an initial draw on the line of credit of $145.0 million to fund the acquisition of Curamik. During the first nine months of 2013, we made principal payments of $16.8 million on the debt, including a $8.0 million payment on the revolver, which paid the remaining balance of that debt. We made $24.5 million of principal payments in fiscal 2012. We are obligated to pay $16.3 million on this debt obligation in the next 12 months. As of September 30, 2013, our outstanding debt related to the Amended Credit Agreement, as amended, consists of $81.3 million of term loan debt. We have the option to pay part of or the entire amount at any time over the remaining life of the Amended Credit Agreement, as amended, with any balance due and payable at the agreement's expiration. | ||||||||||||
In addition, as of September 30, 2013 we had the following standby letters of credit (LOC) and guarantees that are backed by the Amended Credit Agreement, as amended: | ||||||||||||
• | $1.4 million letter of credit to guarantee Rogers workers compensation plan; | |||||||||||
• | $0.1 million letter guarantee to guarantee a payable obligation for a Chinese subsidiary (Rogers Suzhou), | |||||||||||
No amounts were owed on the LOC or guarantees as of September 30, 2013 or December 31, 2012. | ||||||||||||
We also guarantee an interest rate swap related to the lease of the Curamik manufacturing facility in Eschenbach, Germany. The swap agreement is between the lessor, our Curamik subsidiary, and a third party bank. We guarantee any liability related to the swap agreement in case of default by the lessor through the term of the swap until expiration in July 2016, or if we exercised the option to buyout the lease at June 30, 2013 as specified within the lease agreement. We did not exercise our option to buyout the lease at June 30, 2013. The swap is in a liability position with the bank at September 30, 2013, and has a fair value of $0.8 million. We have concluded that the probability of default by the lessor is not probable during the term of the swap, and we chose not to exercise the option to buyout the lease during the leasing period; therefore, the guarantee has no value. | ||||||||||||
Capital Lease | ||||||||||||
During the first quarter of 2011, we recorded a capital lease obligation related to the acquisition of Curamik for its primary manufacturing facility in Eschenbach, Germany. We had an option to purchase the property in either 2013 or upon the expiration of the lease in 2021 at a price which is the greater of (i) the then-current market value or (ii) the financial residual book value of the land including the buildings and installations thereon. We chose not to exercise the option to purchase the property that was available to us on June 30, 2013. The total obligation recorded for the lease as of September 30, 2013 is $8.0 million. Depreciation expense related to the capital lease was $0.1 million in each of the three month periods ended September 30, 2013 and 2012, and $0.3 million in each of the nine month periods ended September 30, 2013 and September 30, 2012. Accumulated depreciation at September 30, 2013 and December 31, 2012 was $1.0 million and $0.8 million, respectively. | ||||||||||||
Depreciation expense on the capital lease asset is recorded in Cost of Sales in our condensed consolidated statements of income (loss). Interest expense related to the debt recorded on the capital lease is included in interest expense in our condensed consolidated statements of income (loss). See “Interest” section below for further discussion. | ||||||||||||
Interest | ||||||||||||
We incurred interest expense on our outstanding debt of $0.5 million and $1.7 million in the three and nine month periods ended September 30, 2013, respectively, and $0.8 million and $2.3 million in the three and nine month periods ended September 30, 2012, respectively. We incurred an unused commitment fee of approximately $0.1 million and $0.3 million in the three and nine month periods ended September 30, 2013, respectively, and of approximately $0.1 million and $0.3 million in the three and nine month periods ended September 30, 2012, respectively. In July 2012, we entered into an interest rate swap to hedge the variable interest rate on 65% of the term loan debt, then outstanding, effective July 2013. At September 30, 2013, our outstanding debt balance is only made up of the term loan which amounted to $81.3 million. At September 30, 2013, the rate charged on this debt is the 1 month LIBOR at 0.1875% plus a spread of 2.00%. | ||||||||||||
We also incurred interest expense on the capital lease of $0.1 million and $0.4 million in the three and nine month periods ended September 30, 2013, respectively, and of $0.3 million and $1.1 million in the three and nine month periods ended September 30, 2012, respectively. | ||||||||||||
Restriction on Payment of Dividends | ||||||||||||
Pursuant to the Amended Credit Agreement, as amended, we cannot make a cash dividend payment if a default or event of default has occurred and is continuing or shall result from the cash dividend payment. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||||||||||
Definite Lived Intangible Assets | ||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademarks and patents | $ | 1,057 | $ | 280 | $ | 777 | $ | 1,065 | $ | 227 | $ | 838 | ||||||||||||
Technology | 37,246 | 11,969 | 25,277 | 36,479 | 8,394 | 28,085 | ||||||||||||||||||
Covenant-not-to-compete | 1,032 | 549 | 483 | 1,042 | 358 | 684 | ||||||||||||||||||
Customer relationships | 20,891 | 2,888 | 18,003 | 20,529 | 2,066 | 18,463 | ||||||||||||||||||
Total definite lived intangible assets | $ | 60,226 | $ | 15,686 | $ | 44,540 | $ | 59,115 | $ | 11,045 | $ | 48,070 | ||||||||||||
Gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations. | ||||||||||||||||||||||||
Amortization expense for the three and nine month periods ended September 30, 2013 was approximately $1.5 million and $4.4 million, respectively. Amortization expense for the three and nine month periods ended September 30, 2012 was approximately $1.1 million and $3.3 million, respectively. The estimated annual future amortization expense is $1.5 million, $6.1 million, $5.8 million, $5.3 million and $4.9 million for the remainder of 2013, 2014, 2015, 2016 and 2017, respectively. These amounts could vary based on changes in foreign currency exchange rates. | ||||||||||||||||||||||||
The weighted average amortization period as of September 30, 2013, by intangible asset class, is presented in the table below: | ||||||||||||||||||||||||
Intangible Asset Class | Weighted Average Amortization Period | |||||||||||||||||||||||
Trademarks and patents | 9.8 | |||||||||||||||||||||||
Technology | 6.8 | |||||||||||||||||||||||
Covenant not-to-compete | 4.3 | |||||||||||||||||||||||
Customer relationships | 9.7 | |||||||||||||||||||||||
Total other intangible assets | 8 | |||||||||||||||||||||||
Approximately $5.3 million of indefinite-lived intangible assets comprised of trademarks were acquired from the acquisition of Curamik. These assets are assessed for impairment annually or when changes in circumstances indicated that the carrying values may be recoverable. The definite-lived intangibles are amortized using a fair value methodology that is based on the projected economic use of the related underlying asset. | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the period ending September 30, 2013, by reportable segment, is as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | High Performance Foams | Printed Circuit Materials | Curamik Electronics Solutions | Power Distribution Systems | Other | Total | ||||||||||||||||||
December 31, 2012 | $ | 23,973 | $ | — | $ | 78,844 | $ | — | $ | 2,224 | $ | 105,041 | ||||||||||||
Foreign currency translation adjustment | (159 | ) | — | 2,005 | — | — | 1,846 | |||||||||||||||||
September 30, 2013 | $ | 23,814 | $ | — | $ | 80,849 | $ | — | $ | 2,224 | $ | 106,887 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Commitments and Contingencies | |
We are currently engaged in the following environmental and legal proceedings: | ||
Superfund Sites | ||
We are currently involved as a potentially responsible party (PRP) in one active case involving a waste disposal site. | ||
Chatham Superfund Site - The costs incurred since inception for this claim have been immaterial and have been primarily covered by insurance policies, for both legal and remediation costs. In this matter, we have been assessed a cost sharing percentage of approximately 2% in relation to the range for estimated total cleanup costs of $18.8 million to $29.6 million. This estimate was updated in the first quarter of 2013, as the previous range was $17.0 million to $24.0 million. We believe we have sufficient insurance coverage to fully cover this liability and have recorded a liability and related insurance receivable of approximately $0.4 million as of September 30, 2013, which approximates our share of the low end of the range. We believe we are a de minimis participant and, as such, have been allocated an insignificant percentage of the total PRP cost sharing responsibility. Based on facts presently known to us, we believe that the potential for the final results of this case having a material adverse effect on our results of operations, financial position or cash flows is remote. This case has been ongoing for many years and we believe that it will continue on for the indefinite future. No time frame for completion can be estimated at the present time. | ||
PCB Contamination | ||
We have been working with the Connecticut Department of Energy and Environmental Protection (CT DEEP) and the EPA, Region I, in connection with certain polychlorinated biphenyl (PCB) contamination at our facility in Woodstock, Connecticut. The issue was originally discovered in the soil at the facility in the late 1990s, which was remediated in 2000. Further contamination was later found in the surrounding groundwater, which was addressed in 2011 with the installation of a pump and treat system. To date, we have spent approximately $2.5 million in remediation and monitoring costs related to these issues and expect future costs related primarily to the maintenance of the pump and treat system now in place at the site to be de minimis. | ||
During the first quarter of 2010, we discovered additional PCB contamination in the building at this facility. Remediation costs are expected to be approximately $1.0 million, which was recorded as our original liability. To date, we have incurred $0.8 million in remediation costs related to this issue and anticipate that the remaining reserve of $0.2 million will be adequate to cover the remaining remediation work. However, if additional contamination is found, the cost of the remaining remediation may increase. | ||
We believe that these efforts will continue for several more years and no time frame for completion can be estimated at the present time. | ||
Asbestos Litigation | ||
A significant number of asbestos-related product liability claims have been brought against numerous United States industrial companies where the third-party plaintiffs allege personal injury from exposure to asbestos-containing products. We have been named, along with hundreds of other companies, as a defendant in some of these claims. In virtually all of these claims filed against us, the plaintiffs are seeking unspecified damages, or, if an amount is specified, such amount merely represents a jurisdictional amount. However, occasionally specific damages are alleged and in such situations, plaintiffs’ lawyers often sue dozens of defendants, frequently without factual basis or support. As a result, even when a specific amount of damages is alleged, such action can be arbitrary, both as to the amount being sought and the defendant being charged with such damages. | ||
We did not mine, mill, manufacture or market asbestos; rather we made a limited number of products which contained encapsulated asbestos. Such products were provided to industrial users. We stopped manufacturing these products in the late 1980s. | ||
• | Claims | |
We have been named in asbestos litigation primarily in Illinois, Pennsylvania and Mississippi. As of September 30, 2013, there were 355 pending claims compared to 319 pending claims at December 31, 2012. The number of pending claims at a particular time can fluctuate significantly from period to period depending on how successful we have been in getting these cases dismissed or settled. Some jurisdictions prohibit specifying alleged damages in personal injury tort cases such as these, other than a minimum jurisdictional amount which may be required for such reasons as allowing the case to be litigated in a jury trial (which the plaintiffs believe will be more favorable to them than if heard only before a judge) or allowing the case to be litigated in federal court. This is in contrast to commercial litigation, in which specific alleged damage claims are often permitted. The prohibition on specifying alleged damages sometimes applies not only to the suit when filed but also during the trial – in some jurisdictions the plaintiff is not actually permitted to specify to the jury during the course of the trial the amount of alleged damages the plaintiff is claiming. Further, in those jurisdictions in which plaintiffs are permitted to claim specific alleged damages, many plaintiffs nonetheless still choose not to do so. In those cases in which plaintiffs are permitted to and choose to assert specific dollar amounts in their complaints, we believe the amounts claimed are typically not meaningful as an indicator of a company’s potential liability. This is because (1) the amounts claimed may bear no relation to the level of the plaintiff’s alleged injury and are often used as part of the plaintiff’s litigation strategy, (2) the complaints typically assert claims against numerous defendants, and often the alleged damages are not allocated against specific defendants, but rather the broad claim is made against all of the defendants as a group, making it impossible for a particular defendant to quantify the alleged damages that are being specifically claimed against it and therefore its potential liability, and (3) many cases are brought on behalf of plaintiffs who have not suffered any medical injury, and ultimately are resolved without any payment or payment of a small fraction of the damages initially claimed. Of the 355 claims pending as of September 30, 2013, 73 claims do not specify the amount of damages sought, 281 claims cite jurisdictional amounts, and only one (1) claim (less than 1.0% of the total pending claims) specifies the amount of damages sought not based on jurisdictional requirements. This one (1) claim, which names 21 defendants, alleges compensatory and punitive damages of $20 million each. However, for the reasons cited above, we do not believe that this data allows for an accurate assessment of the relation that the amount of alleged damages claimed might bear to the ultimate disposition of these cases. | ||
We believe the rate at which plaintiffs filed asbestos-related suits against us increased in 2001, 2002, 2003 and 2004 because of increased activity on the part of plaintiffs to identify those companies that sold asbestos-containing products, but which did not directly mine, mill or market asbestos. There was also a significant increase in the volume of asbestos-related bodily injury cases in Mississippi in 2002. This increase in the volume of claims in Mississippi was apparently due to the passage of tort reform legislation (applicable to asbestos-related injuries), which became effective on September 1, 2003 and which resulted in a higher than average number of claims being filed in Mississippi by plaintiffs seeking to ensure their claims would be governed by the law in effect prior to the passage of tort reform. The number of asbestos related suits filed against us decreased slightly in 2005 and 2006, but increased slightly in 2007, declined in 2008 and increased again in 2009 and 2010. The number of lawsuits filed against us in 2011 and 2012 was significantly higher than in 2010. No meaningful trend for 2013 is available at this time. The higher number of recent lawsuits is reflected in the National Economic Research Associates, Inc. (NERA) and Marsh USA, Inc. (Marsh) reports. (See "Impact on Financials Statements" section below.) | ||
• | Defenses | |
In the majority of cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of exposure to our asbestos-containing products. We believe that this trend will continue and that a majority of the claimants in pending cases will not be able to demonstrate exposure or loss. This belief is based in large part on two factors: the limited number of asbestos-related products manufactured and sold by us and the fact that the asbestos was encapsulated in such products. In addition, even at sites where the presence of an alleged injured party can be verified during the same period those products were used, our liability cannot be presumed because even if an individual contracted an asbestos-related disease, not everyone who was employed at a site was exposed to the asbestos containing products that we manufactured. Based on these and other factors, we have and will continue to vigorously defend ourselves in asbestos-related matters. | ||
• | Dismissals and Settlements | |
Cases brought against us typically name 50-300 defendants, although some cases have had as few as one (1) and as many as 833 defendants. We have obtained the dismissal of many of these claims. For the nine months ended September 30, 2013, we were able to have 81 claims dismissed and we settled nine (9) claims. For the year ended December 31, 2012, 94 claims were dismissed and sixteen (16) were settled. The majority of costs have been paid by our insurance carriers, including the costs associated with the small number of cases that have been settled. Such settlements totaled approximately $1.5 million for the nine months ended September 30, 2013, compared to $6.3 million for the year ended 2012. Although these figures provide some insight into our experience with asbestos litigation, no guarantee can be made as to the dismissal and settlement rates that we will experience in the future. | ||
Settlements are made without any admission of liability. Settlement amounts may vary depending upon a number of factors, including the jurisdiction where the action was brought, the nature and extent of the disease alleged and the associated medical evidence, the age and occupation of the claimant, the existence or absence of other possible causes of the alleged illness and the availability of legal defenses, as well as whether the action is brought alone or as part of a group of claimants. To date, we have been successful in obtaining the dismissal of the majority of the claims and have settled only a limited number. The majority of settled claims were settled for immaterial amounts, and the majority of such costs have been paid by our insurance carriers. In addition, to date, we have not been required to pay any punitive damage awards. | ||
• | Potential Liability | |
NERA, a consulting firm with expertise in the field of evaluating mass tort litigation asbestos bodily-injury claims, has historically been engaged to assist us in projecting our future asbestos-related liabilities and defense costs with regard to pending claims and claims which have not yet been filed. Projecting future asbestos costs is subject to numerous variables that are extremely difficult to predict, including the number of claims that might be received, the type and severity of the disease alleged by each claimant, the long latency period associated with asbestos exposure, dismissal rates, costs of medical treatment, the financial resources of other companies that are co-defendants in claims, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case and the impact of potential changes in legislative or judicial standards, including potential tort reform. Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens. In light of these inherent uncertainties, the variability of our claims history and consultations with NERA, we currently believe that 10 years is the most reasonable period for recognizing a reserve for future costs, and that costs that might be incurred after that period are not reasonably estimable at this time. As a result, we also believe that our ultimate asbestos-related contingent liability (i.e., our indemnity or other claim disposition costs plus related legal fees) cannot be estimated with certainty. (See "Impact on Financials Statements" section below for further discussion.) | ||
• | Insurance Coverage | |
Our applicable insurance policies generally provide coverage for asbestos liability costs, including coverage for both settlement and defense costs. Following the initiation of asbestos litigation, an effort was made to identify all of our primary, umbrella and excess level insurance carriers that provided applicable coverage beginning in the 1950s through the mid-1980s. Where appropriate, carriers were put on notice of the litigation. Marsh, a consulting firm with expertise in the field of evaluating insurance coverage and the likelihood of recovery for asbestos-related claims, has historically been engaged to work with us to project our insurance coverage for asbestos-related claims. Marsh’s conclusions are based primarily on a review of our coverage history, application of reasonable assumptions on the allocation of coverage consistent with certain industry practices, an assessment of the creditworthiness of the insurance carriers, analysis of applicable deductibles, retentions and policy limits, the experience of NERA and a review of NERA’s reports. | ||
• | Cost Sharing Agreement | |
To date, our insurance carriers have paid for substantially all of the settlement and defense costs associated with our asbestos-related claims. The current cost sharing agreement between us and such insurance carriers is primarily designed to facilitate the ongoing administration and payment of such claims by the carriers until the applicable insurance coverage is exhausted. This four year agreement expires on January 25, 2015 and replaced an older agreement that had expired. | ||
During 2012 and 2013, the primary layer insurance policies providing coverage for the January 1, 1966 to June 30, 1969 period exhausted. The cost sharing agreement contemplates that any excess carrier providing insurance coverage over exhausted primary layer carriers will become a party to the cost sharing agreement, replacing the coverage provided by the exhausted primary policies if the carrier providing such excess coverage is not already a party to the cost sharing agreement. The excess umbrella carrier providing coverage for the 42-month period set forth above is not a party to the cost sharing agreement. Such umbrella excess carrier was notified of the aforementioned exhaustion and is currently providing applicable insurance coverage in accordance with the cost sharing agreement, even though it is not a party to such agreement. | ||
• | Impact on Financial Statements | |
The models developed for determining the potential exposure and related insurance coverage were developed by outside consultants deemed to be experts in their respective fields with the forecast for asbestos related liabilities generated by NERA and the related insurance receivable projections developed by Marsh. The models contain numerous assumptions that significantly impact the results generated by the models. We believe the assumptions made are reasonable at the present time, but are subject to uncertainty based on the actual future outcome of our asbestos litigation. Historically, due to the inherent uncertainties of the forecast process and our limited amount of settlement and claims history, we utilized a forecast period of five years, which we concluded was the most reasonable period for recognizing a reserve for projected asbestos liabilities, and that costs that might be incurred after that period were not reasonably estimable at that time. In the fourth quarter of 2012, we reviewed this assumption and determined that it was appropriate to extend the forecast period from 5 years to 10 years . We reached this conclusion due to the fact that we now have considerably more experience in addressing asbestos related lawsuits and have a longer history of activity to use as a baseline to more accurately project the liability over a longer period than previously disclosed. Further, settlement trends have become more meaningful in recent years and we believe that we now have a more meaningful history of data on which to base projections. Further, we determined that a 10 year projection period is now appropriate as, although we have a longer and more consistent history of data over the last few years, we do not believe we have sufficient data to justify a longer projection period at this time. As of December 31, 2012, the estimated liability and estimated insurance recovery for the 10 year period through 2022 was $51.4 million and $48.3 million, resulting in an additional charge of $2.9 million recognized in the fourth quarter of 2012 ($0.2 million was previously recognized throughout 2012). There were no changes to these projections during the first nine months of 2013. We review our asbestos related forecasts annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time we would analyze these forecasts. | ||
The amounts recorded for the asbestos-related liability and the related insurance receivables described above were based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. | ||
There can be no assurance that our accrued asbestos liabilities will approximate our actual asbestos-related settlement and defense costs, or that our accrued insurance recoveries will be realized. We believe that it is reasonably possible that we will incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves, but such excess amount cannot be reasonably estimated at this time. We will continue to vigorously defend ourselves and believe we have substantial unutilized insurance coverage to mitigate future costs related to this asbestos litigation. | ||
Other Environmental and General Litigation | ||
• | In the second quarter of 2010, the CT DEEP contacted us to discuss a disposal site in Killingly, Connecticut. We are currently in the very early stages of evaluating this matter and have initiated internal due diligence work related to the site to better understand the issue and our alleged involvement. Currently, we do not know the nature and extent of any alleged contamination at the site, how many parties could be potentially involved in any remediation, if necessary, or the extent to which we could be deemed a potentially responsible party. CT DEEP has not made any assessment of the nature of any potential remediation work that may be done, nor have they made any indication of any potential costs associated with such remediation. Therefore, based on the facts and circumstances known to us at the present time, we are not able to estimate the probability of incurring a contingent liability related to this site, nor are we able to reasonably estimate any potential range of exposure at this time. As such, no reserve has been established for this matter at this time. We continually monitor this situation and are in correspondence with the CT DEEP as appropriate. When and if facts and circumstances related to this matter change, we will review our position and our ability to estimate the probability of any potential loss contingencies, as well as the range of any such potential exposure. | |
• | The Rogers Corporate Headquarters located in Rogers, Connecticut is part of the Connecticut Voluntary Corrective Action Program (VCAP). As part of this program, we have started conversations with the CT DEEP to begin to determine if any corrective actions need to be taken at the site related to any potential contamination issues. We are currently in the very early stages of evaluating this matter and have initiated internal due diligence work related to the site to better understand any potential issues. However, at this time, it is currently unknown what the nature and extent of any potential contamination is at the site, nor what any potential remediation or associated costs would be if any such issues were found. Therefore, based on the facts and circumstances known to us at the present time, we are unable to estimate the probability of incurring a contingent liability related to this site, nor are we able to reasonably estimate any potential range of exposure at this time. As such, no reserve has been established for this matter at this time. | |
In addition to the above issues, the nature and scope of our business brings us in regular contact with the general public and a variety of businesses and government agencies. Such activities inherently subject us to the possibility of litigation, including environmental and product liability matters that are defended and handled in the ordinary course of business. We have established accruals for matters for which management considers a loss to be probable and reasonably estimable. Environmental remediation costs are recorded in "Selling and administrative expenses" on our condensed consolidated statements of income (loss). It is the opinion of management that facts known at the present time do not indicate that such litigation, after taking into account insurance coverage and the aforementioned accruals, will have a material adverse impact on our results of operations, financial position, or cash flows. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Our effective tax rate resulted in an expense of 31.4% on income in the third quarter of 2013 as compared to a benefit of 436.7% in the third quarter of 2012. On a year to date basis, the effective tax rate was 30.3% for the first nine months of 2013 as compared to a benefit of 297.2% in the first nine months of 2012. In the third quarter of 2012, our tax rate was lower due to certain one-time discrete items of approximately $50 million, the most significant of which was the reversal of the valuation allowance on the majority of our U.S. deferred tax assets of $46.6 million. In the first nine months of 2012, our tax rate was favorably impacted by certain one-time discrete items including a $1.5 million benefit related to the reversal of the valuation allowance resulting from the liquidation of the auction rate securities portfolio. In both 2013 and 2012, our tax rate benefited from favorable tax rates on certain foreign business activity as compared to our statutory rate of 35%. | |
We are subject to income taxes in the United States and in numerous foreign jurisdictions. No provision is made for U.S. income taxes on the undistributed earnings of substantially all of our wholly-owned foreign subsidiaries because such earnings are indefinitely reinvested in those companies. If circumstances change and it becomes apparent that some or all of the undistributed earnings of our wholly-owned foreign subsidiaries will not be indefinitely reinvested, a provision for the tax consequences, if any, will be recorded in the period in which the circumstances change. | |
Our accounting policy is to account for interest expense and penalties related to uncertain tax positions as income tax expense. As of September 30, 2013, we have approximately $2.4 million of accrued interest related to uncertain tax positions included in the $20.7 million of unrecognized tax benefits, $13.5 million of which, if recognized, would impact the effective tax rate. | |
We are subject to numerous tax filings including U.S. Federal, various state and certain foreign jurisdictions. Currently, the following tax years remain open to the possibility of audit, by jurisdiction - U.S. Federal: 2010 – 2012; various states: 2008 – 2012; and foreign: 2009 – 2012. |
Restructuring_and_Impairment_C
Restructuring and Impairment Charges | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Impairment Charges | Restructuring and Impairment Charges | |||||||||||||||
In the first half of 2012, we began several initiatives to streamline our organization and rationalize our cost structure in order to better position the Company for profitable growth in the future. These initiatives continued in 2013. The goal of these initiatives is to become a more streamlined organization both from an organizational and cost perspective, with efficient manufacturing capabilities that are focused on meeting our customers' needs. | ||||||||||||||||
2012 | ||||||||||||||||
In the first quarter, we announced several initiatives as part of the streamlining plan, which included the following: | ||||||||||||||||
•Implemented an early retirement program for certain eligible employees; | ||||||||||||||||
• | Realigned our organizational structure by consolidating a number of senior executive positions, reorganizing certain business functions and redeploying resources across the Company; | |||||||||||||||
• | Exited the Thermal Management Solutions business (previously announced in the fourth quarter of 2011); | |||||||||||||||
• | Initiated a plan to shut down the Power Distribution Systems startup operation in North America, which was completed in the third quarter of 2012; and | |||||||||||||||
• | Liquidated our remaining auction rate securities. | |||||||||||||||
In the second quarter, we announced several additional streamlining actions as follows: | ||||||||||||||||
• | We announced the shutdown of the High Performance Foams manufacturing facility in Bremen, Germany, which was completed by the end of 2012. The manufacture of certain silicone foam materials produced in the Bremen facility was consolidated into our existing facility in Carol Stream, Illinois. The expenses and charges related to the termination of the operations at the Bremen facility were approximately $3.1 million and were comprised primarily of (i) $0.9 million for the early termination of the lease on the building; (ii) $0.8 million for severance charges for employees in Bremen; (iii) $0.4 million related to the impairment of certain assets; and (iv) $0.3 million of costs to remove and transport certain equipment to Carol Stream and prepare the building for return to the landlord. We recognized approximately $1.5 million of these charges in the second quarter of 2012, and recognized the remaining charges in the second half of 2012. | |||||||||||||||
• | We decided to cease production of our non-woven composite materials products in an effort to redeploy resources to focus on our Core Strategic segments. Sales of these products had been steadily declining for several years and totaled approximately $1.1 million in the third quarter of 2012 and $4.8 million in fiscal 2011. Production was shutdown by the end of 2012 and it did not have a material impact on our overall operations. No material charges were incurred from this initiative. | |||||||||||||||
In the third quarter, we recognized approximately $1.4 million of additional charges related to the shutdown of our High Performance Foams manufacturing facility in Bremen, Germany. | ||||||||||||||||
2013 | ||||||||||||||||
In the second quarter of 2013, we continued our streamlining efforts as we reorganized certain business functions resulting in severance costs of $3.0 million. We also made changes to our salaried and non-union defined benefit pension plans. Effective June 30, 2013 for salaried and non-union hourly employees in the U.S. and effective December 31, 2013 for union employees in the U.S., benefits under our defined benefit pension plans will no longer accrue. The freeze of the defined benefit pension plan for salaried and non-union hourly employees was approved by the Board of Directors on May 3, 2013. The freeze of the union employees' defined benefit pension plan was effective upon ratification of the labor agreement on April 14, 2013. Additionally, our union workforce in Connecticut ratified a current union contract, which resulted in the payout of the union ratification bonus. These changes resulted in the recognition of approximately $1.5 million in charges related to the pension freeze. | ||||||||||||||||
In the third quarter of 2013, we incurred additional cost related to our reorganization of certain business functions resulting in severance costs of $1.2 million. | ||||||||||||||||
The following table summarizes the restructuring and impairment charges related to these activities recorded in our operating results in the third quarter and first nine months of 2013 and 2012. | ||||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||
September 30, 2013 | September 30, 2013 | September 30, 2012 | September 30, 2012 | |||||||||||||
Cost of Sales | ||||||||||||||||
High Performance Foams | ||||||||||||||||
Accelerated depreciation expense related to Bremen shut-down | $ | — | $ | — | $ | 179 | $ | 764 | ||||||||
Inventory impairment related to Bremen shut-down | — | — | — | 191 | ||||||||||||
Union ratification bonus | 181 | — | — | |||||||||||||
Printed Circuit Materials | ||||||||||||||||
Union ratification bonus | 179 | — | — | |||||||||||||
Curamik Electronics Solutions | ||||||||||||||||
Union ratification bonus | 5 | — | — | |||||||||||||
Power Distribution Systems | ||||||||||||||||
Accelerated depreciation expense related to U.S. shut-down | — | — | 139 | 499 | ||||||||||||
Union ratification bonus | 3 | — | — | |||||||||||||
Other | ||||||||||||||||
Union ratification bonus | — | — | — | — | ||||||||||||
Total charges for Cost of Sales | $ | — | $ | 368 | $ | 318 | $ | 1,454 | ||||||||
Restructuring and Impairment | ||||||||||||||||
High Performance Foams | ||||||||||||||||
Fixed asset impairment for Bisco and Poron asset disposal | $ | — | $ | — | $ | — | $ | 79 | ||||||||
Severance and other employee related costs (1) | 94 | 1,345 | — | 3,088 | ||||||||||||
Bremen shut down costs | — | — | 1,233 | 1,233 | ||||||||||||
Printed Circuit Materials | ||||||||||||||||
Severance and other employee related costs (1) | 93 | 802 | — | 3,046 | ||||||||||||
Curamik Electronics Solutions | ||||||||||||||||
Severance and other employee related costs (1) | 877 | 2,495 | 506 | 1,463 | ||||||||||||
Power Distribution Systems | ||||||||||||||||
Impairment of investment related receivable | — | — | — | 264 | ||||||||||||
Severance and other employee related costs (1) | 154 | 999 | 27 | 504 | ||||||||||||
Other | ||||||||||||||||
Severance and other employee related costs (1) | 13 | 115 | — | 272 | ||||||||||||
Total charges for Restructuring and Impairment | $ | 1,231 | $ | 5,756 | $ | 1,766 | $ | 9,949 | ||||||||
(1) For the nine month period ended September 30, 2013, this includes a pension curtailment charge of $1.5 million. For the nine month period ended September 30, 2012, this includes a net charge of $1.6 million, related to the early retirement program implemented in the first quarter of 2012. See Note 8 - "Pension Benefits and Other Post Retirement Plans" for further information. | ||||||||||||||||
The following table summarizes changes in the severance accrual from December 31, 2012 through September 30, 2013: | ||||||||||||||||
(Dollars in thousands) | Streamlining and restructuring related activities | Curamik finishing operations relocation to Hungary | Total | |||||||||||||
Balance at December 31, 2012 | $ | 1,142 | $ | 3,967 | $ | 5,109 | ||||||||||
Provisions | 4,124 | — | 4,124 | |||||||||||||
Payments | (3,854 | ) | (3,967 | ) | (7,821 | ) | ||||||||||
Balance at September 30, 2013 | $ | 1,412 | $ | — | $ | 1,412 | ||||||||||
Balances may differ from prior periods due to foreign exchange rate fluctuations. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations |
In the fourth quarter of 2011, we made the strategic decision to end the operations of our Thermal Management Solutions operating segment. We had invested in its operations for the previous few years, but had difficulty gaining traction in the market and working through issues in the manufacturing process. Therefore, we determined that we would not achieve future success in this operation and chose to shut down operations rather than invest further. There was no activity for this segment in the first nine months of 2013. For the nine month period ended September 30, 2012, operating losses of $0.1 million, net of tax, were reflected as discontinued operations in the accompanying condensed consolidated statements of income (loss). There was no activity for this segment in the third quarter of 2012. Net sales were $0.1 million for the nine month period ended September 30, 2012. There were no sales activity for the third quarter of 2012. The tax related to the discontinued operations was de minimis for 2012. | |
In the second quarter of 2012, we decided to cease production of our non-woven composite materials operating segment located in Rogers, Connecticut. Sales of non-woven products had been steadily declining for several years and totaled approximately $5.3 million for the year ended December 31, 2012. Manufacturing operations ceased by the end of 2012 and last sales out of inventory occurred in the first quarter of 2013. For the nine month period ended September 30, 2013 , operating profits of $0.1 million were reflected as discontinued operations in the accompanying condensed consolidated statements of income (loss). There was no activity for this segment in the third quarter of 2013. For the nine month period ended September 30, 2012, an operating loss of $0.2 million, net of tax, was reflected as discontinued operations in the accompanying condensed consolidated statements of income (loss). Net sales were $0 million and $0.2 million for the three and nine month periods ended September 30, 2013, respectively. Net sales were $1.1 million and $3.7 million for the three and nine month periods ended September 30, 2012, respectively. The tax related to the discontinued operations was $0.1 million for the nine months ended September 30, 2013 and September 30, 2012. Tax related to this segment was de minimis for the three months ended September 30, 2013 and September 30, 2012. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Recent Accounting Pronouncements |
Comprehensive Income | |
In January 2013, the Financial Accounting Standards Board issued an update which seeks to improve the reporting of reclassifications out of accumulated other comprehensive income. This change requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This update supersedes the presentation requirements for reclassifications out of accumulated other comprehensive income in Accounting Standards Update (ASU) No. 2011-05, Presentation of Comprehensive Income, and ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This update is effective for the reporting periods beginning after December 15, 2012, which was our first quarter of fiscal year 2013. The adoption of the update is reflected in Note 5 - "Accumulated other comprehensive income (loss)" but has not impacted our financial condition or results of operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis, Categorized by the Level of Inputs Used in the Valuation | From time to time we enter into various instruments that require fair value measurement, including foreign currency option contracts, interest rate swaps and copper derivative contracts. Assets and liabilities measured on a recurring basis, categorized by the level of inputs used in the valuation, include: | |||||||||||||||||
(Dollars in thousands) | Balance Sheet Location | Carrying amount as of September 30, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Pension assets (1) | $ | 156,741 | $ | 106,619 | $ | 33,530 | $ | 16,592 | ||||||||||
Foreign exchange option contracts | Other current assets | 9 | — | 9 | — | |||||||||||||
Copper derivative instruments | Other current assets | 809 | — | 809 | — | |||||||||||||
Liabilities | ||||||||||||||||||
Interest rate swap instrument | Other accrued liabilities | (332 | ) | — | (332 | ) | — | |||||||||||
(Dollars in thousands) | Balance Sheet Location | Carrying amount as of December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Pension assets (1) | $ | 143,540 | $ | 98,269 | $ | 29,869 | $ | 15,402 | ||||||||||
Foreign exchange option contracts | Other current assets | 15 | — | 15 | — | |||||||||||||
Copper derivative instruments | Other current assets | 267 | — | 267 | — | |||||||||||||
Liabilities | ||||||||||||||||||
Interest rate swap instrument | Other accrued liabilities | (361 | ) | — | (361 | ) | — | |||||||||||
Reconciliation of Assets Measured at Fair Value on a Recurring Basis using Unobservable Inputs (Level 3) | The reconciliation of our assets measured at fair value on a recurring basis using unobservable inputs (Level 3) was as follows: | |||||||||||||||||
(Dollars in thousands) | Auction Rate | |||||||||||||||||
Securities | ||||||||||||||||||
Balance at December 31, 2011 | $ | 25,960 | ||||||||||||||||
Cash received for redemptions at par | (25,438 | ) | ||||||||||||||||
Reclassified from other comprehensive income | 2,723 | |||||||||||||||||
Reported in earnings | (3,245 | ) | ||||||||||||||||
Balance at September 30, 2012 | $ | — | ||||||||||||||||
Hedging_Transactions_and_Deriv1
Hedging Transactions and Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | |||||||||||
Notional Value of Copper Derivatives | Notional Values of Foreign Currency Derivatives | ||||||||||
January 2013 - December 2013 | 55 | metric tons per month | YEN/USD | ¥350,000,000 | |||||||
July 2013 - November 2013 | 40 | metric tons per month | HUF/EUR | 290,000,000 | |||||||
December 2013 - March 2014 | 30 | metric tons per month | |||||||||
January 2014 - April 2014 | 30 | metric tons per month | |||||||||
September 2013 - December 2013 | 30 | metric tons per month | |||||||||
January 2014 - June 2014 | 75 | metric tons per month | |||||||||
January 2014 - December 2014 | 10 | metric tons per month | |||||||||
April 2014 - June 2014 | 35 | metric tons per month | |||||||||
May 2014 - December 2014 | 30 | metric tons per month | |||||||||
July 2014 - September 2014 | 40 | metric tons per month | |||||||||
July 2014 - December 2014 | 35 | metric tons per month | |||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | |||||||||||
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the period ended September 30, 2013 | ||||||||||
Amount of gain (loss) | |||||||||||
Location of gain (loss) | Three months ended | Nine months ended | |||||||||
Foreign Exchange Contracts | |||||||||||
Contracts not designated as hedging instruments | Other income, net | $ | 28 | $ | 224 | ||||||
Copper Derivative Instruments | |||||||||||
Contracts not designated as hedging instruments | Other income, net | (33 | ) | (378 | ) | ||||||
Interest Rate Swap Instrument | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | (82 | ) | 30 | |||||||
(Dollars in thousands) | The Effect of Current Derivative Instruments on the Financial Statements for the period ended September 30, 2012 | ||||||||||
Amount of gain (loss) | |||||||||||
Location of gain (loss) | Three months ended | Nine months ended | |||||||||
Foreign Exchange Contracts | |||||||||||
Contracts not designated as hedging instruments | Other income, net | $ | 28 | $ | 109 | ||||||
Copper Derivative Instruments | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | (191 | ) | (2 | ) | ||||||
Contracts not designated as hedging instruments | Other income, net | 5 | 5 | ||||||||
Interest Rate Swap Instrument | |||||||||||
Contracts designated as hedging instruments | Other comprehensive income (loss) | (355 | ) | (355 | ) |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories were as follows: | |||||||
(Dollars in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Raw materials | $ | 26,987 | $ | 29,064 | ||||
Work-in-process | 15,876 | 13,154 | ||||||
Finished goods | 22,920 | 30,960 | ||||||
Total Inventory | $ | 65,783 | $ | 73,178 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||||
Accumulated Balances Related to Each Component of Accumulated Other Comprehensive Income (Loss) | The changes of accumulated other comprehensive income (loss) by component at September 30, 2013 were as follows: | |||||||||||||||||||
(Dollars in thousands) | Foreign currency translation adjustments | Funded status of pension plans and other postretirement benefits (1) | Unrealized gain (loss) on derivative instruments (2) | Total | ||||||||||||||||
Beginning Balance December 31, 2012 | $ | 12,585 | $ | (70,158 | ) | $ | (235 | ) | $ | (57,808 | ) | |||||||||
Other comprehensive income before reclassifications | 4,877 | — | 19 | 4,896 | ||||||||||||||||
Actuarial net gain (loss) incurred in the fiscal year | — | 17,225 | — | 17,225 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 3,107 | — | 3,107 | ||||||||||||||||
Net current-period other comprehensive income | 4,877 | 20,332 | 19 | 25,228 | ||||||||||||||||
Ending Balance September 30, 2013 | $ | 17,462 | $ | (49,826 | ) | $ | (216 | ) | $ | (32,580 | ) | |||||||||
(1) Net of taxes of $11,423 and $22,371 for the periods ended September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(2) Net of taxes of $116 and $127 for the periods ended September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
The changes of accumulated other comprehensive income (loss) by component at September 30, 2012 were as follows: | ||||||||||||||||||||
(Dollars in thousands) | Foreign currency translation adjustments | Funded status of pension plans and other postretirement benefits (3) | Unrealized gain (loss) on derivative instruments (4) | Unrealized gain (loss) on marketable securities (5) | Total | |||||||||||||||
Beginning Balance December 31, 2011 | $ | 5,875 | $ | (67,239 | ) | $ | (270 | ) | $ | (1,168 | ) | $ | (62,802 | ) | ||||||
Other comprehensive income before reclassifications | 530 | — | (84 | ) | — | 446 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 4,171 | — | 1,168 | 5,339 | |||||||||||||||
Net current-period other comprehensive income | 530 | 4,171 | (84 | ) | 1,168 | 5,785 | ||||||||||||||
Ending Balance September 30, 2012 | $ | 6,405 | $ | (63,068 | ) | $ | (354 | ) | $ | — | $ | (57,017 | ) | |||||||
(3) Net of taxes of 18,553 and $20,799 for the periods ended September 30, 2012 and December 31, 2011, respectively. | ||||||||||||||||||||
(4) Net of taxes of $0 and $0 for the periods ended September 30, 2012 and December 31, 2011, respectively. | ||||||||||||||||||||
(5) Net of taxes of $1,555 for the period ended December 31, 2011. | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 were as follows: | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) for the period ended September 30, 2013 | ||||||||||||||||||||
Details about accumulated other comprehensive income components | Three months ended | Nine months ended | Affected line item in the statement where net income is presented | |||||||||||||||||
Amortization of defined benefit pension and other post-retirement benefit items: | ||||||||||||||||||||
Prior service costs | $ | — | $ | 1,545 | -6 | |||||||||||||||
Actuarial losses | 545 | 3,235 | -6 | |||||||||||||||||
545 | 4,780 | Total before tax | ||||||||||||||||||
(191 | ) | (1,673 | ) | Tax (benefit) expense | ||||||||||||||||
$ | 354 | $ | 3,107 | Net of tax | ||||||||||||||||
(6) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 8 - "Pension Benefits and Other Postretirement Benefit Plans" for additional details. | ||||||||||||||||||||
The reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2012 were as follows: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) for the period ended September 30, 2012 | ||||||||||||||||||||
Details about accumulated other comprehensive income components | Three months ended | Nine months ended | Affected line item in the statement where net income is presented | |||||||||||||||||
Unrealized gains and losses on marketable securities | ||||||||||||||||||||
$ | — | $ | (2,723 | ) | Realized gain (loss) | |||||||||||||||
— | 1,555 | Tax benefit (expense) | ||||||||||||||||||
$ | — | $ | (1,168 | ) | Net of tax | |||||||||||||||
Amortization of defined benefit pension and other post-retirement benefit items: | ||||||||||||||||||||
Prior service costs | $ | 3 | $ | 9 | -6 | |||||||||||||||
Actuarial losses | 3,436 | 6,408 | -6 | |||||||||||||||||
3,439 | 6,417 | Total before tax | ||||||||||||||||||
1,204 | 2,246 | Tax benefit (expense) | ||||||||||||||||||
$ | 2,235 | $ | 4,171 | Net of tax | ||||||||||||||||
(6) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 8 - "Pension Benefits and Other Postretirement Benefit Plans" for additional details. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share, for the periods indicated: | |||||||||||||||
(In thousands, except per share amounts) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Income (loss) from continuing operations | $ | 13,572 | $ | 59,124 | $ | 26,132 | $ | 63,955 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - | ||||||||||||||||
Weighted-average shares | 17,245 | 16,485 | 17,142 | 16,342 | ||||||||||||
Effect of dilutive stock options | 618 | 539 | 570 | 561 | ||||||||||||
Denominator for diluted earnings per share - Adjusted | ||||||||||||||||
weighted-average shares and assumed conversions | 17,863 | 17,024 | 17,712 | 16,903 | ||||||||||||
Basic income (loss) from continuing operations per share: | $ | 0.79 | $ | 3.59 | $ | 1.52 | $ | 3.91 | ||||||||
Diluted income (loss) from continuing operations per share: | 0.76 | 3.47 | 1.48 | 3.78 | ||||||||||||
Anti-dilutive shares and Potential Ordinary Shares That Were Not Otherwise Antidilutive excluded From Calculation of Diluted Weighted Average Shares Outstanding | Certain potential ordinary dilutive shares were excluded from the calculation of diluted weighted-average shares outstanding because they would have an anti-dilutive effect on net income per share (see table below). | |||||||||||||||
Three Months Ended | ||||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Anti-dilutive shares excluded | — | 23,200 | ||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value of Options Granted Calculated Using Weighted Average Assumptions | The fair value of options granted during the nine month period ended September 30, 2012 were calculated using the following weighted-average assumptions: | ||||||||||||
September 30, | |||||||||||||
2012 | |||||||||||||
Options granted | 46,950 | ||||||||||||
Weighted average exercise price | $ | 41.27 | |||||||||||
Weighted-average grant date fair value | 19.08 | ||||||||||||
Assumptions: | |||||||||||||
Expected volatility | 47.7 | % | |||||||||||
Expected term (in years) | 5.9 | ||||||||||||
Risk-free interest rate | 1.43 | % | |||||||||||
Expected dividend yield | — | ||||||||||||
Below are the assumptions used in the Monte Carlo calculation: | |||||||||||||
Expected volatility | 37.1 | % | |||||||||||
Expected term (in years) | 3 | ||||||||||||
Risk-free interest rate | 0.4 | % | |||||||||||
Expected dividend yield | — | ||||||||||||
Summary of Activity Under Stock Option Plans | A summary of the activity under our stock option plans as of September 30, 2013 and changes during the three and nine month periods then ended, is presented below: | ||||||||||||
Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted-Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | ||||||||||
Options outstanding at June 30, 2013 | 1,503,873 | $ | 42.26 | 3.7 | $ | 12,388,067 | |||||||
Options granted | — | — | |||||||||||
Options exercised | (461,081 | ) | 38.94 | ||||||||||
Options forfeited | (13,617 | ) | 42.43 | ||||||||||
Options outstanding at September 30, 2013 | 1,029,175 | 43.75 | 3.9 | 16,452,670 | |||||||||
Options exercisable at September 30, 2013 | 831,692 | 45.32 | 3.2 | 12,038,245 | |||||||||
Options vested or expected to vest at September 30, 2013* | 1,023,251 | 43.78 | 3.9 | 16,320,237 | |||||||||
* In addition to the vested options, we expect a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
Weighted- | |||||||||||||
Average | |||||||||||||
Options | Exercise Price | ||||||||||||
Outstanding | Per Share | ||||||||||||
Options outstanding at December 31, 2012 | 1,765,947 | $ | 40.58 | ||||||||||
Options granted | — | — | |||||||||||
Options exercised | (712,321 | ) | 36.04 | ||||||||||
Options forfeited | (24,451 | ) | 39.49 | ||||||||||
Options outstanding at September 30, 2013 | 1,029,175 | ||||||||||||
Performance-Based Restricted Stock [Member] | |||||||||||||
Restricted Stock Activities | |||||||||||||
Performance-Based Restricted Stock Awards | |||||||||||||
Non-vested awards outstanding at December 31, 2012 | 73,458 | ||||||||||||
Awards granted | 48,660 | ||||||||||||
Stock issued | (33,538 | ) | |||||||||||
Awards forfeited | (15,222 | ) | |||||||||||
Non-vested awards outstanding at September 30, 2013 | 73,358 | ||||||||||||
Time Based Restricted Stock [Member] | |||||||||||||
Restricted Stock Activities | |||||||||||||
Time-Based Restricted Stock Awards | |||||||||||||
Non-vested awards outstanding at December 31, 2012 | 115,139 | ||||||||||||
Awards granted | 152,380 | ||||||||||||
Stock issued | (7,136 | ) | |||||||||||
Awards forfeited | (24,492 | ) | |||||||||||
Non-vested awards outstanding at September 30, 2013 | 235,891 | ||||||||||||
Deferred Stock Units [Member] | |||||||||||||
Restricted Stock Activities | |||||||||||||
Deferred Stock | |||||||||||||
Units | |||||||||||||
Awards outstanding at December 31, 2012 | 30,150 | ||||||||||||
Awards granted | 16,800 | ||||||||||||
Stock issued | (15,400 | ) | |||||||||||
Awards outstanding at September 30, 2013 | 31,550 | ||||||||||||
Pension_Benefit_and_Other_Post1
Pension Benefit and Other Postretirement Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
Change in benefit obligation: | 30-Jun-13 | |||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 209,844 | ||||||||||||||||||||||||||||||
Service cost | 2,210 | |||||||||||||||||||||||||||||||
Interest cost | 4,015 | |||||||||||||||||||||||||||||||
Actuarial (gain) loss | 1,658 | |||||||||||||||||||||||||||||||
Benefit payments | (3,642 | ) | ||||||||||||||||||||||||||||||
Curtailment charge | (22,649 | ) | ||||||||||||||||||||||||||||||
Special termination benefit | — | |||||||||||||||||||||||||||||||
Benefit obligation at end of the period | $ | 191,436 | ||||||||||||||||||||||||||||||
(1) This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
Change in plan assets: | 30-Jun-13 | |||||||||||||||||||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 143,540 | ||||||||||||||||||||||||||||||
Actual return on plan assets | 10,981 | |||||||||||||||||||||||||||||||
Employer contributions | 6,500 | |||||||||||||||||||||||||||||||
Benefit payments | (3,642 | ) | ||||||||||||||||||||||||||||||
Settlement charge | — | |||||||||||||||||||||||||||||||
Fair value of plan assets at the end of the period | 157,379 | |||||||||||||||||||||||||||||||
Funded status | $ | (34,057 | ) | |||||||||||||||||||||||||||||
Amounts recognized in consolidated balance sheet | Amounts recognized in the consolidated balance sheet consist of: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | ||||||||||||||||||||||||||||||
Current liabilities | (49 | ) | ||||||||||||||||||||||||||||||
Noncurrent liabilities | (34,008 | ) | ||||||||||||||||||||||||||||||
Net amount recognized at end of period | $ | (34,057 | ) | |||||||||||||||||||||||||||||
Schedule of net periodic benefit cost not yet recognized | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension | |||||||||||||||||||||||||||||||
Benefits (1) | ||||||||||||||||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 58,860 | ||||||||||||||||||||||||||||||
Prior service cost | — | |||||||||||||||||||||||||||||||
Net amount recognized at end of period | $ | 58,860 | ||||||||||||||||||||||||||||||
(1) This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | he components of net periodic benefit cost for the periods indicated are: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Pension Benefits | Retirement Health and Life Insurance Benefits | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
Change in benefit obligation: | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||
Service cost | $ | 132 | $ | 1,150 | $ | 2,342 | $ | 3,447 | $ | 143 | $ | 149 | $ | 484 | $ | 481 | ||||||||||||||||
Interest cost | 1,869 | 2,094 | 5,884 | 6,336 | 61 | 92 | 202 | 272 | ||||||||||||||||||||||||
Expected return on plan assets | (2,900 | ) | (2,495 | ) | (8,347 | ) | (7,397 | ) | — | — | — | — | ||||||||||||||||||||
Amortization of prior service cost | — | 116 | 124 | 347 | — | (113 | ) | (115 | ) | (338 | ) | |||||||||||||||||||||
Amortization of net loss | 545 | 1,347 | 3,070 | 4,138 | — | 66 | 165 | 247 | ||||||||||||||||||||||||
Special termination benefit | — | — | — | — | — | — | — | 1,593 | ||||||||||||||||||||||||
Settlement charge | — | 2,023 | — | 2,023 | — | — | — | — | ||||||||||||||||||||||||
Curtailment charge | — | — | 1,537 | — | — | — | — | — | ||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (354 | ) | $ | 4,235 | $ | 4,610 | $ | 8,894 | $ | 204 | $ | 194 | $ | 736 | $ | 2,255 | |||||||||||||||
Schedule of assumptions used | Weighted-average assumptions used to determine benefit obligations for pension benefits (2): | |||||||||||||||||||||||||||||||
30-Apr-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4 | % | ||||||||||||||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | ||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net benefit cost for pension benefits for the period ended (2): | ||||||||||||||||||||||||||||||||
30-Apr-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.5 | % | ||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.75 | % | ||||||||||||||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | ||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods | ||||||||||||||||||||||||||||||||
Schedule of allocation of plan assets | The following table presents the fair value of the net assets by asset category (2): | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-Apr-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Pooled separate accounts | $ | 33,530 | $ | 29,869 | ||||||||||||||||||||||||||||
Mutual funds | 106,619 | 98,269 | ||||||||||||||||||||||||||||||
Guaranteed deposit account | 16,592 | 15,402 | ||||||||||||||||||||||||||||||
Total investments at fair value | $ | 156,741 | $ | 143,540 | ||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value (2): | ||||||||||||||||||||||||||||||||
Assets at Fair Value as of April 30, 2013 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Pooled separate accounts | $ | — | $ | 33,530 | $ | — | $ | 33,530 | ||||||||||||||||||||||||
Mutual funds | 106,619 | — | — | 106,619 | ||||||||||||||||||||||||||||
Guaranteed deposit account | — | — | 16,592 | 16,592 | ||||||||||||||||||||||||||||
Total assets at fair value | $ | 106,619 | $ | 33,530 | $ | 16,592 | $ | 156,741 | ||||||||||||||||||||||||
Assets at Fair Value as of December 31, 2012 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Pooled separate accounts | $ | — | $ | 29,869 | $ | — | $ | 29,869 | ||||||||||||||||||||||||
Mutual funds | 98,269 | — | — | 98,269 | ||||||||||||||||||||||||||||
Guaranteed deposit account | — | — | 15,402 | 15,402 | ||||||||||||||||||||||||||||
Total assets at fair value | $ | 98,269 | $ | 29,869 | $ | 15,402 | $ | 143,540 | ||||||||||||||||||||||||
Changes in fair value of Level 3 assets | The table below sets forth a summary of changes in the fair value of the guaranteed deposit account's Level 3 assets for the period ended April 30, 2013. (2) | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Guaranteed Deposit Account | |||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 15,402 | ||||||||||||||||||||||||||||||
Realized gains (losses) | — | |||||||||||||||||||||||||||||||
Unrealized gains relating to instruments still held at the reporting date | 1,177 | |||||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements (net) | 13 | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||
Balance at April 30, 2013 | $ | 16,592 | ||||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. | ||||||||||||||||||||||||||||||||
Schedule of future benefit payments | The following pension benefit payments, which reflect expected future employee service, as appropriate, are expected to be paid through the utilization of plan assets for the funded plans and from operating cash flows for the unfunded plans. The benefit payments are based on the same assumptions used to measure our benefit obligation at April 30, 2013. | |||||||||||||||||||||||||||||||
Pension Benefits (2) | ||||||||||||||||||||||||||||||||
2014 | $ | 8,441 | ||||||||||||||||||||||||||||||
2015 | 8,029 | |||||||||||||||||||||||||||||||
2016 | 8,209 | |||||||||||||||||||||||||||||||
2017 | 8,303 | |||||||||||||||||||||||||||||||
2018 | 8,595 | |||||||||||||||||||||||||||||||
2019-2023 | 48,629 | |||||||||||||||||||||||||||||||
(2) This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods, as required by the applicable accounting guidance. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Reportable Segment Information | The following table sets forth the information about our reportable segments for the periods indicated: | |||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales | ||||||||||||||||
Core Strategic | ||||||||||||||||
High Performance Foams | $ | 44,460 | $ | 48,045 | $ | 126,839 | $ | 131,807 | ||||||||
Printed Circuit Materials | 47,105 | 43,437 | 136,253 | 123,352 | ||||||||||||
Power Electronics Solutions | ||||||||||||||||
Curamik Electronics Solutions | 32,137 | 22,050 | 83,951 | 70,250 | ||||||||||||
Power Distribution Systems | 13,191 | 9,395 | 36,460 | 31,484 | ||||||||||||
Other | 5,927 | 6,207 | 17,749 | 17,691 | ||||||||||||
Net sales | $ | 142,820 | $ | 129,134 | $ | 401,252 | $ | 374,584 | ||||||||
Operating income (loss) | ||||||||||||||||
Core Strategic | ||||||||||||||||
High Performance Foams | $ | 7,490 | $ | 8,848 | $ | 17,622 | $ | 16,001 | ||||||||
Printed Circuit Materials | 5,857 | 3,195 | 13,651 | 5,971 | ||||||||||||
Power Electronics Solutions | ||||||||||||||||
Curamik Electronics Solutions | 986 | (2,394 | ) | (4,650 | ) | (5,371 | ) | |||||||||
Power Distribution Systems | 2,824 | (325 | ) | 5,473 | (840 | ) | ||||||||||
Other | 1,852 | 1,005 | 5,835 | 3,078 | ||||||||||||
Operating income (loss) | 19,009 | 10,329 | 37,931 | 18,839 | ||||||||||||
Equity income in unconsolidated joint ventures | 1,754 | 1,773 | 3,045 | 3,735 | ||||||||||||
Other income (expense), net | (101 | ) | 19 | (867 | ) | 140 | ||||||||||
Net realized gain (loss) | — | — | — | (3,245 | ) | |||||||||||
Interest income (expense), net | (881 | ) | (1,104 | ) | (2,616 | ) | (3,366 | ) | ||||||||
Income (loss) before income tax expense (benefit) | $ | 19,781 | $ | 11,017 | $ | 37,493 | $ | 16,103 | ||||||||
Joint_Ventures_Tables
Joint Ventures (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||
Joint Ventures Accounted for Under Equity Method of Accounting | As of September 30, 2013, we had two joint ventures, each 50% owned, which are accounted for under the equity method of accounting. | |||||||||||||||
Joint Venture | Location | Reportable Segment | Fiscal Year-End | |||||||||||||
Rogers INOAC Corporation (RIC) | Japan | High Performance Foams | October 31 | |||||||||||||
Rogers INOAC Suzhou Corporation (RIS) | China | High Performance Foams | December 31 | |||||||||||||
Summarized Information for Joint Ventures | The summarized financial information for the joint ventures for the periods indicated is as follows: | |||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales | $ | 16,431 | $ | 20,004 | $ | 38,924 | $ | 48,383 | ||||||||
Gross profit (loss) | 4,989 | 5,973 | 10,189 | 13,517 | ||||||||||||
Net income (loss) | 3,508 | 3,546 | 6,090 | 7,470 | ||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Maturities of Long-term Debt | The aggregate mandatory principal payments due are as follows: | |||||||||||
2011 | $2.50 | million | ||||||||||
2012 | $7.50 | million | ||||||||||
2013 | $12.50 | million | ||||||||||
2014 | $17.50 | million | ||||||||||
2015 | $35.00 | million | ||||||||||
2016 | $25.00 | million | ||||||||||
Debt Covenants and Fixed Charge Metrics | Fixed Charge metrics are detailed in the table below. | |||||||||||
Periods | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | Q3 2013 | |||||||
Covenant Limit | 1.25 | 1.25 | 1.5 | 1.5 | 1.5 | |||||||
Actual FCCR | 1.93 | 2.18 | 2.27 | 2.06 | 2.23 | |||||||
Further, we are currently required to maintain certain financial covenant ratios, including (i) a leverage ratio of no more than 3.0 to 1.0 and (ii) a minimum fixed charge coverage ratio (FCCR) as defined in the following table: | ||||||||||||
Period | Ratio | |||||||||||
March 31, 2012 to December 31, 2012 | 1.25 : 1.00 | |||||||||||
March 31, 2013 to December 31, 2013 | 1.50 : 1.00 | |||||||||||
March 31, 2014 and thereafter | 1.75 : 1.00 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Intangible Assets | Definite Lived Intangible Assets | |||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademarks and patents | $ | 1,057 | $ | 280 | $ | 777 | $ | 1,065 | $ | 227 | $ | 838 | ||||||||||||
Technology | 37,246 | 11,969 | 25,277 | 36,479 | 8,394 | 28,085 | ||||||||||||||||||
Covenant-not-to-compete | 1,032 | 549 | 483 | 1,042 | 358 | 684 | ||||||||||||||||||
Customer relationships | 20,891 | 2,888 | 18,003 | 20,529 | 2,066 | 18,463 | ||||||||||||||||||
Total definite lived intangible assets | $ | 60,226 | $ | 15,686 | $ | 44,540 | $ | 59,115 | $ | 11,045 | $ | 48,070 | ||||||||||||
Weighted Average Amortization Period, by Intangible Asset Class | The weighted average amortization period as of September 30, 2013, by intangible asset class, is presented in the table below: | |||||||||||||||||||||||
Intangible Asset Class | Weighted Average Amortization Period | |||||||||||||||||||||||
Trademarks and patents | 9.8 | |||||||||||||||||||||||
Technology | 6.8 | |||||||||||||||||||||||
Covenant not-to-compete | 4.3 | |||||||||||||||||||||||
Customer relationships | 9.7 | |||||||||||||||||||||||
Total other intangible assets | 8 | |||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill, by Segment | The changes in the carrying amount of goodwill for the period ending September 30, 2013, by reportable segment, is as follows: | |||||||||||||||||||||||
(Dollars in thousands) | High Performance Foams | Printed Circuit Materials | Curamik Electronics Solutions | Power Distribution Systems | Other | Total | ||||||||||||||||||
December 31, 2012 | $ | 23,973 | $ | — | $ | 78,844 | $ | — | $ | 2,224 | $ | 105,041 | ||||||||||||
Foreign currency translation adjustment | (159 | ) | — | 2,005 | — | — | 1,846 | |||||||||||||||||
September 30, 2013 | $ | 23,814 | $ | — | $ | 80,849 | $ | — | $ | 2,224 | $ | 106,887 | ||||||||||||
Restructuring_and_Impairment_C1
Restructuring and Impairment Charges (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Impairment Charges | The following table summarizes the restructuring and impairment charges related to these activities recorded in our operating results in the third quarter and first nine months of 2013 and 2012. | |||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||
September 30, 2013 | September 30, 2013 | September 30, 2012 | September 30, 2012 | |||||||||||||
Cost of Sales | ||||||||||||||||
High Performance Foams | ||||||||||||||||
Accelerated depreciation expense related to Bremen shut-down | $ | — | $ | — | $ | 179 | $ | 764 | ||||||||
Inventory impairment related to Bremen shut-down | — | — | — | 191 | ||||||||||||
Union ratification bonus | 181 | — | — | |||||||||||||
Printed Circuit Materials | ||||||||||||||||
Union ratification bonus | 179 | — | — | |||||||||||||
Curamik Electronics Solutions | ||||||||||||||||
Union ratification bonus | 5 | — | — | |||||||||||||
Power Distribution Systems | ||||||||||||||||
Accelerated depreciation expense related to U.S. shut-down | — | — | 139 | 499 | ||||||||||||
Union ratification bonus | 3 | — | — | |||||||||||||
Other | ||||||||||||||||
Union ratification bonus | — | — | — | — | ||||||||||||
Total charges for Cost of Sales | $ | — | $ | 368 | $ | 318 | $ | 1,454 | ||||||||
Restructuring and Impairment | ||||||||||||||||
High Performance Foams | ||||||||||||||||
Fixed asset impairment for Bisco and Poron asset disposal | $ | — | $ | — | $ | — | $ | 79 | ||||||||
Severance and other employee related costs (1) | 94 | 1,345 | — | 3,088 | ||||||||||||
Bremen shut down costs | — | — | 1,233 | 1,233 | ||||||||||||
Printed Circuit Materials | ||||||||||||||||
Severance and other employee related costs (1) | 93 | 802 | — | 3,046 | ||||||||||||
Curamik Electronics Solutions | ||||||||||||||||
Severance and other employee related costs (1) | 877 | 2,495 | 506 | 1,463 | ||||||||||||
Power Distribution Systems | ||||||||||||||||
Impairment of investment related receivable | — | — | — | 264 | ||||||||||||
Severance and other employee related costs (1) | 154 | 999 | 27 | 504 | ||||||||||||
Other | ||||||||||||||||
Severance and other employee related costs (1) | 13 | 115 | — | 272 | ||||||||||||
Total charges for Restructuring and Impairment | $ | 1,231 | $ | 5,756 | $ | 1,766 | $ | 9,949 | ||||||||
(1) For the nine month period ended September 30, 2013, this includes a pension curtailment charge of $1.5 million. For the nine month period ended September 30, 2012, this includes a net charge of $1.6 million, related to the early retirement program implemented in the first quarter of 2012. See Note 8 - "Pension Benefits and Other Post Retirement Plans" for further information. | ||||||||||||||||
Summary of Severance Accural Activity | The following table summarizes changes in the severance accrual from December 31, 2012 through September 30, 2013: | |||||||||||||||
(Dollars in thousands) | Streamlining and restructuring related activities | Curamik finishing operations relocation to Hungary | Total | |||||||||||||
Balance at December 31, 2012 | $ | 1,142 | $ | 3,967 | $ | 5,109 | ||||||||||
Provisions | 4,124 | — | 4,124 | |||||||||||||
Payments | (3,854 | ) | (3,967 | ) | (7,821 | ) | ||||||||||
Balance at September 30, 2013 | $ | 1,412 | $ | — | $ | 1,412 | ||||||||||
Balances may differ from prior periods due to foreign exchange rate fluctuations. |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Information) (Details) (Auction Rate Securities [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Net proceeds from liquidation of auction rate security | $25.40 |
Loss on liquidation of the securities | 3.2 |
Impairment on auction rate securities | 0.9 |
Securities Redeemed at Less Than Par Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Par value of auction rate securities redeemed | 29.5 |
Securities Redeemed at Par Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Par value of auction rate securities redeemed | $24.90 |
Fair_Value_Measurements_Variou
Fair Value Measurements (Various Instruments That Require Fair Value Measurement) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Pension assets | $156,741 | [1] | $143,540 | [1] |
Foreign currency option contracts | 9 | 15 | ||
Copper derivative contracts | 809 | 267 | ||
Interest rate swap instrument | -332 | -361 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Pension assets | 106,619 | [1] | 98,269 | [1] |
Foreign currency option contracts | 0 | 0 | ||
Copper derivative contracts | 0 | 0 | ||
Interest rate swap instrument | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Pension assets | 33,530 | [1] | 29,869 | [1] |
Foreign currency option contracts | 9 | 15 | ||
Copper derivative contracts | 809 | 267 | ||
Interest rate swap instrument | -332 | -361 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Pension assets | 16,592 | [1] | 15,402 | [1] |
Foreign currency option contracts | 0 | 0 | ||
Copper derivative contracts | 0 | 0 | ||
Interest rate swap instrument | $0 | $0 | ||
[1] | Pension assets are recorded net of the projected benefit obligation as a long term pension liability, and are as of a April 30, 2013 valuation date. |
Fair_Value_Measurements_Reconc
Fair Value Measurements (Reconciliation of Assets Measured at Fair Value on Recurring Basis using Unobservable Inputs Level 3) (Details) (Auction Rate Securities [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $25,960 |
Reclassified from other comprehensive income | 2,723 |
Reported in earnings | -3,245 |
Ending Balance | 0 |
Securities Redeemed at Less Than Par Value [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Cash received for redemptions | ($25,438) |
Hedging_Transactions_and_Deriv2
Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2012 |
In Millions, unless otherwise specified | Bank Term Loan [Member] | Bank Term Loan [Member] | |
Contract | Cash Flow Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Number of derivative contracts related to minimizing risk associated with potential rise in copper prices (contract) | 13 | ||
Interest rate swap derivative, percentage of debt hedged (percent) | 65.00% | ||
Term loan debt | $81.30 | ||
Variable interest rate (percent) | 0.19% | ||
Interest rate spread over variable rate (percent) | 2.00% | 2.00% |
Hedging_Transactions_and_Deriv3
Hedging Transactions and Derivative Financial Instruments (Notional Values of Derivative Instruments) (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Copper January 2013 - December 2013 [Member] | Copper July 2013 - November 2013 [Member] | Copper December 2013 - March 2014 [Member] | Copper January 2014 - April 2014 [Member] | Copper September 2013 - December 2013 [Member] | Copper January 2014 - June 2014 [Member] | Copper January 2014 - December 2014 [Member] | Copper April 2014 - June 2014 [Member] | Copper March 2014 - December 2014 [Member] | Copper July 2014 - September 2014 [Member] | Copper July 2014 - December 2014 [Member] | YEN/USD Notional Amount of Foreign Currency Derivatives [Member] | HUF/EUR Notional Amount of Foreign Currency Derivatives [Member] |
JPY (¥) | HUF | ||||||||||||
Derivative [Line Items] | |||||||||||||
Notional Value of Copper Derivatives | 55 | 40 | 30 | 30 | 30 | 75 | 10 | 35 | 30 | 40 | 35 | ||
Notional Amount of Foreign Currency Derivatives | ¥ 350,000 | 290,000 |
Hedging_Transactions_and_Deriv4
Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $28 | $28 | $224 | $109 |
Copper Derivative Instruments [Member] | ||||
Derivative [Line Items] | ||||
Copper Derivative instruments designated as hedging instruments, amount of gain (loss) | -191 | -2 | ||
Copper Derivative Instruments not designated as hedging instruments, amount of gain (loss) | -33 | 5 | -378 | 5 |
Interest Rate Swap Instrument [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap instrument designated as hedging instruments, amount of gain (loss) | ($82) | ($355) | $30 | ($355) |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $26,987 | $29,064 |
Work-in-process | 15,876 | 13,154 |
Finished goods | 22,920 | 30,960 |
Total Inventory | $65,783 | $73,178 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income or Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning balance | ($57,808) | ($62,802) | ||||||||
Other comprehensive income before reclassifications | 4,896 | 446 | ||||||||
Actuarial net gain (loss) incurred in the fiscal year | 0 | 0 | 17,225 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive income | 3,107 | 5,339 | ||||||||
Net current-period other comprehensive income | 25,228 | 5,785 | ||||||||
Ending balance | -32,580 | -57,017 | -32,580 | -57,017 | ||||||
AOCI, Pension and other postretirement benefit plans, tax | 11,423 | 18,553 | 11,423 | 18,553 | 22,371 | 20,799 | ||||
AOCI, Cumulative changes in net gain (loss) from cash flow hedges, tax | 116 | 0 | 116 | 0 | 127 | 0 | ||||
AOCI, Available-for-sale securities adjustment, tax | 1,555 | |||||||||
Foreign currency translation adjustments [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning balance | 12,585 | 5,875 | ||||||||
Other comprehensive income before reclassifications | 4,877 | 530 | ||||||||
Actuarial net gain (loss) incurred in the fiscal year | 0 | |||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||||||||
Net current-period other comprehensive income | 4,877 | 530 | ||||||||
Ending balance | 17,462 | 6,405 | 17,462 | 6,405 | ||||||
Funded status of pension plans and other postretirement benefits [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning balance | -70,158 | [1] | -67,239 | [2] | ||||||
Other comprehensive income before reclassifications | 0 | [1] | 0 | [2] | ||||||
Actuarial net gain (loss) incurred in the fiscal year | 17,225 | [1] | ||||||||
Amounts reclassified from accumulated other comprehensive income | 3,107 | [1] | 4,171 | [2] | ||||||
Net current-period other comprehensive income | 20,332 | [1] | 4,171 | [2] | ||||||
Ending balance | -49,826 | [1] | -63,068 | [2] | -49,826 | [1] | -63,068 | [2] | ||
Unrealized gain (loss) on derivative instruments [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning balance | -235 | [3] | -270 | [4] | ||||||
Other comprehensive income before reclassifications | 19 | [3] | -84 | [4] | ||||||
Actuarial net gain (loss) incurred in the fiscal year | 0 | [3] | ||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | [3] | 0 | [4] | ||||||
Net current-period other comprehensive income | 19 | [3] | -84 | [4] | ||||||
Ending balance | -216 | [3] | -354 | [4] | -216 | [3] | -354 | [4] | ||
Unrealized gain (loss) on marketable securities [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning balance | -1,168 | [5] | ||||||||
Other comprehensive income before reclassifications | 0 | [5] | ||||||||
Amounts reclassified from accumulated other comprehensive income | 1,168 | [5] | ||||||||
Net current-period other comprehensive income | 1,168 | [5] | ||||||||
Ending balance | $0 | [5] | $0 | [5] | ||||||
[1] | Net of taxes of $11,423 and $22,371 for the periods ended September 30, 2013 and December 31, 2012, respectively. | |||||||||
[2] | Net of taxes of 18,553 and $20,799 for the periods ended September 30, 2012 and December 31, 2011, respectively. | |||||||||
[3] | Net of taxes of $116 and $127 for the periods ended September 30, 2013 and December 31, 2012, respectively. | |||||||||
[4] | Net of taxes of $0 and $0 for the periods ended September 30, 2012 and December 31, 2011, respectively. | |||||||||
[5] | Net of taxes of $1,555 for the period ended December 31, 2011. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Reclassification) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Realized gain (loss) | $0 | $0 | $0 | ($3,245) | ||
Total before tax | -19,781 | -11,017 | -37,493 | -16,103 | ||
Tax benefit (expense) | -6,209 | 48,107 | -11,361 | 47,852 | ||
Net of tax | -13,572 | -59,124 | -26,132 | -63,955 | ||
Unrealized gain (loss) on marketable securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Realized gain (loss) | 0 | -2,723 | ||||
Tax benefit (expense) | 0 | 1,555 | ||||
Net of tax | 0 | 1,168 | ||||
Amortization of defined benefit pension and other post-retirement benefit items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Prior service costs | 0 | [1] | 3 | 1,545 | [1] | 9 |
Actuarial losses | 545 | [1] | 3,436 | 3,235 | [1] | 6,408 |
Total before tax | 545 | 3,439 | 4,780 | 6,417 | ||
Tax benefit (expense) | 191 | 1,204 | 1,673 | 2,246 | ||
Net of tax | $354 | $2,235 | $3,107 | $4,171 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 8 - "Pension Benefits and Other Postretirement Benefit Plans" for additional details. |
Earnings_Per_Share_Computation
Earnings Per Share (Computation of Basic and Diluted) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ||||
Income (loss) from continuing operations, net of tax | $13,572 | $59,124 | $26,132 | $63,955 |
Denominator: | ||||
Denominator for basic earnings per share - Weighted-average shares (shares) | 17,244,831 | 16,484,957 | 17,141,672 | 16,342,289 |
Effect of dilutive stock options (shares) | 618,000 | 539,000 | 570,000 | 561,000 |
Denominator for diluted earnings per share - Adjusted weighted-average shares and assumed conversions (shares) | 17,863,035 | 17,024,137 | 17,711,972 | 16,903,224 |
Basic income (loss) per share (dollars per share) | $0.79 | $3.59 | $1.52 | $3.91 |
Diluted income (loss) per share (dollars per share) | $0.76 | $3.47 | $1.48 | $3.78 |
Earnings_Per_Share_Anti_Diluti
Earnings Per Share (Anti Dilutive Shares Excluded) (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares excluded (shares) | 0 | 23,200 |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Expected dividend yield (percent) | 0.00% | ||||
Compensation expense (income) | $3,704,000 | $3,775,000 | |||
Options exercised, total intrinsic value | 11,700,000 | ||||
Total amount of cash received from exercise of options | 26,000,000 | ||||
Employee stock purchase plan, number of offering (offering period) | 2 | ||||
Employee stock purchase plan, offering period (months) | 6 months | ||||
Employee Stock Purchase Plan [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Compensation expense (income) | 100,000 | 100,000 | 300,000 | 300,000 | |
Employee stock purchase plan, purchase price discount (percent) | 15.00% | ||||
Stock Options [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Stock options, contractual term (years) | 10 years | ||||
Expected dividend yield (percent) | 0.00% | ||||
Stock-based compensation, approximate forfeitures rate (percent) | 3.00% | ||||
Compensation expense (income) | 300,000 | 400,000 | 300,000 | 1,700,000 | |
Performance-Based Restricted Stock [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Expected dividend yield (percent) | 0.00% | ||||
Compensation expense (income) | 500,000 | 200,000 | 600,000 | 200,000 | |
Restricted stock award program, measurement period (years) | 3 years | ||||
Restricted stock award program, payment of award as percentage of target (percent) | 200.00% | ||||
Performance-Based Restricted Stock [Member] | Minimum [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Restricted stock award program, awarded shares as a percentage of the original award amount (percent) | 0.00% | ||||
Performance-Based Restricted Stock [Member] | Maximum [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Restricted stock award program, awarded shares as a percentage of the original award amount (percent) | 200.00% | ||||
Time Based Restricted Stock [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Compensation expense (income) | 1,200,000 | 400,000 | 1,800,000 | 1,200,000 | |
Restricted stock award program, vesting period (years) | 3 years | ||||
Deferred Stock Units [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Compensation expense (income) | 0 | 0 | 700,000 | 700,000 | |
Employee Severance [Member] | Stock Options [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Compensation expense (income) | 700,000 | ||||
Modification of Stock Option Grant [Member] | Employee Severance [Member] | Stock Options [Member] | |||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Compensation expense (income) | $200,000 |
StockBased_Compensation_Fair_V
Stock-Based Compensation (Fair Value of Options Granted Calculated Using Weighted Average Assumptions) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation [Abstract] | |||
Options granted (shares) | 0 | 0 | 46,950 |
Weighted average exercise price (dollars per share) | $0 | $0 | $41.27 |
Weighted-average grant date fair value (dollars per share) | $19.08 | ||
Assumptions: | |||
Expected volatility (percent) | 47.70% | ||
Expected term (years) | 5 years 10 months 25 days | ||
Risk-free interest rate (percent) | 1.43% | ||
Expected dividend yield (percent) | 0.00% |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Activity Under Stock Option Plans) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Options Outstanding | ||||||
Beginning Balance (shares) | 1,503,873 | 1,765,947 | 1,765,947 | |||
Options granted (shares) | 0 | 0 | 46,950 | |||
Options exercised (shares) | -461,081 | -712,321 | ||||
Options cancelled (shares) | -13,617 | -24,451 | ||||
Ending Balance (shares) | 1,029,175 | 1,503,873 | 1,029,175 | |||
Options exercisable (shares) | 831,692 | 831,692 | ||||
Options vested or expected to vest (shares) | 1,023,251 | [1] | 1,023,251 | [1] | ||
Weighted-Average Exercise Price Per Share | ||||||
Beginning Balance, Weighted-Average Exercise Price Per Share, (dollars per share) | $42.26 | $40.58 | $40.58 | |||
Options granted, Weighted-Average Exercise Price Per Share, (dollars per share) | $0 | $0 | $41.27 | |||
Options exercised, Weighted-Average Exercise Price Per Share, (dollars per share) | $38.94 | $36.04 | ||||
Options cancelled, Weighted-Average Exercise Price Per Share, (dollars per share) | $42.43 | $39.49 | ||||
Ending Balance, Weighted-Average Exercise Price Per Share, (dollars per share) | $43.75 | $42.26 | $43.75 | |||
Options exercisable, Weighted-Average Exercise Price Per Share, (dollars per share) | $45.32 | $45.32 | ||||
Options vested or expected to vest, Weighted-Average Exercise Price Per Share, (dollars per share) | $43.78 | [1] | $43.78 | [1] | ||
Weighted-Average Remaining Contractual Life in Years | ||||||
Beginning Balance, Weighted-Average Remaining Contractual Life in Years (years) | 3 years 10 months 24 days | 3 years 8 months 12 days | ||||
Ending Balance, Weighted-Average Remaining Contractual Life in Years (years) | 3 years 10 months 24 days | 3 years 8 months 12 days | ||||
Options exercisable, Weighted-Average Remaining Contractual Life in Years (years) | 3 years 2 months 12 days | |||||
Options vested or expected to vest, Weighted-Average Remaining Contractual Life in Years (years) | 3 years 10 months 24 days | [1] | ||||
Aggregate Intrinsic Value | ||||||
Beginning Balance, Aggregate Intrinsic Value | $12,388,067 | |||||
Ending Balance, Aggregate Intrinsic Value | 16,452,670 | 12,388,067 | 16,452,670 | |||
Options exercisable, Aggregate Intrinsic Value | 12,038,245 | 12,038,245 | ||||
Options vested or expected to vest, Aggregate Intrinsic Value | $16,320,237 | [1] | $16,320,237 | [1] | ||
[1] | * In addition to the vested options, we expect a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. |
StockBased_Compensation_Monte_
Stock-Based Compensation (Monte Carlo Calculation Assumptions) (Details) | 9 Months Ended | 3 Months Ended |
Sep. 30, 2012 | Sep. 30, 2013 | |
Performance-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility (percent) | 47.70% | 37.10% |
Expected term (years) | 5 years 10 months 25 days | 3 years |
Risk-free interest rate (percent) | 1.43% | 0.40% |
Expected dividend yield (percent) | 0.00% | 0.00% |
StockBased_Compensation_Perfor
Stock-Based Compensation (Performance Based Restricted Stock Awards) (Details) (Performance-Based Restricted Stock [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards outstanding at beginning balance (shares) | 73,458 |
Awards granted (shares) | 48,660 |
Stock issued (shares) | -33,538 |
Awards forfeited (shares) | -15,222 |
Non-vested awards outstanding ending balance (shares) | 73,358 |
StockBased_Compensation_Time_B
Stock-Based Compensation (Time Based Restricted Stock Awards) (Details) (Time Based Restricted Stock [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Time Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards outstanding at beginning balance (shares) | 115,139 |
Awards granted (shares) | 152,380 |
Stock issued (shares) | -7,136 |
Awards forfeited (shares) | -24,492 |
Non-vested awards outstanding ending balance (shares) | 235,891 |
StockBased_Compensation_Deferr
Stock-Based Compensation (Deferred Stock Units) (Details) (Deferred Stock Units [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Deferred Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards outstanding at beginning balance (shares) | 30,150 |
Awards granted (shares) | 16,800 |
Stock issued (shares) | -15,400 |
Non-vested awards outstanding ending balance (shares) | 31,550 |
Pension_Benefit_and_Other_Post2
Pension Benefit and Other Postretirement Benefit Plans (Additional Information) (Details) (USD $) | 3 Months Ended | 4 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 4 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | ||
Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Equity Securities [Member] | Debt Securities [Member] | Hypothetical rates of return on plan assets for a 10 year period [Member] | Hypothetical rates of return on plan assets for a 10 year period [Member] | Hypothetical rates of return on plan assets for a 15 year period [Member] | Historical performance of plan assets over a 16 year period [Member] | Hypothetical rates of return on plan assets for a 20 year period [Member] | Hypothetical rates of return on plan assets for a 30 year period [Member] | Fixed Income Securities [Member] | Fixed Income Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Former President and Chief Executive Officer [Member] | Former President and Chief Executive Officer [Member] | ||||||||
Hypothetical rates of return on plan assets for a 10 year period [Member] | Hypothetical rates of return on plan assets for a 15 year period [Member] | Hypothetical rates of return on plan assets for a 10 year period [Member] | Hypothetical rates of return on plan assets for a 15 year period [Member] | Pension Benefits [Member] | Pension Benefits [Member] | ||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||
Projected benefit obligation of plan assets with accumulated benefit obligation in excess of plan assets | $191,400,000 | ||||||||||||||||||||||||||||||||||
Accumulated benefit obligation of plan assets with accumulated benefit obligation in excess of plan assets | 191,400,000 | ||||||||||||||||||||||||||||||||||
Fair value of plan assets with accumulated benefit obligation in excess of plan assets | 157,400,000 | ||||||||||||||||||||||||||||||||||
Special termination benefit | -700,000 | 0 | 2,300,000 | 1,593,000 | 1,593,000 | 0 | [1] | ||||||||||||||||||||||||||||
Benefit payments | 3,642,000 | [1] | 6,300,000 | ||||||||||||||||||||||||||||||||
Settlement charge | 2,023,000 | 2,023,000 | 2,000,000 | ||||||||||||||||||||||||||||||||
Curtailment charge | 1,537,000 | 1,537,000 | |||||||||||||||||||||||||||||||||
Target plan asset allocations (percent) | 8.60% | 57.00% | 43.00% | 8.00% | 7.30% | 7.80% | 8.10% | 10.20% | 3.50% | 4.50% | 9.50% | 11.00% | |||||||||||||||||||||||
Number of Years (years) | 10 years | 15 years | 16 years | 20 years | 30 years | ||||||||||||||||||||||||||||||
Employer voluntary contributions | $0 | $6,300,000 | $0 | $6,300,000 | $6,500,000 | [1] | $16,000,000 | $13,000,000 | |||||||||||||||||||||||||||
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post3
Pension Benefit and Other Postretirement Benefit Plans (Change in Benefit Obligation) (Details) (Pension Benefits [Member], USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Pension Benefits [Member] | ||||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||||
Benefit obligation at beginning of year | $191,436 | [1] | $209,844 | [1] | $209,844 | [1] | ||
Service cost | 132 | 1,150 | 2,210 | [1] | 2,342 | 3,447 | ||
Interest cost | 1,869 | 2,094 | 4,015 | [1] | 5,884 | 6,336 | ||
Actuarial (gain) loss | 1,658 | [1] | ||||||
Benefit payments | -3,642 | [1] | ||||||
Curtailment charge | -22,649 | [1] | ||||||
Special termination benefit | 0 | [1] | ||||||
Benefit obligation at end of the period | $191,436 | [1] | ||||||
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post4
Pension Benefit and Other Postretirement Benefit Plans (Change in Plan Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Apr. 30, 2013 | ||||
Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||
Fair value of plan assets at the beginning of the year | $143,540,000 | [1],[2] | $143,540,000 | [1],[2] | $156,741,000 | [2] | |||||
Actual return on plan assets | 10,981,000 | [1] | |||||||||
Employer contributions | 0 | 6,300,000 | 0 | 6,300,000 | 6,500,000 | [1] | 16,000,000 | 13,000,000 | |||
Benefit payments | -3,642,000 | [1] | |||||||||
Settlement charge | 0 | [1] | |||||||||
Fair value of plan assets at the end of the period | 157,379,000 | [1] | 156,741,000 | [2] | |||||||
Funded status | ($34,057,000) | [1] | |||||||||
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods | ||||||||||
[2] | This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post5
Pension Benefit and Other Postretirement Benefit Plans (Amounts Recognized in Balance Sheet) (Details) (Pension Benefits [Member], USD $) | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | ||
Pension Benefits [Member] | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Noncurrent assets | $0 | [1] |
Current liabilities | -49 | [1] |
Noncurrent liabilities | -34,008 | [1] |
Net amount recognized at end of period | -34,057 | [1] |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Net actuarial loss | 58,860 | [1] |
Prior service cost | 0 | [1] |
Net amount recognized at end of period | $58,860 | [1] |
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post6
Pension Benefit and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | Retirement Health and Life Insurance Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Service cost | $132 | $1,150 | $2,210 | [1] | $2,342 | $3,447 | $143 | $149 | $484 | $481 | ||||
Interest cost | 1,869 | 2,094 | 4,015 | [1] | 5,884 | 6,336 | 61 | 92 | 202 | 272 | ||||
Expected return on plan assets | -2,900 | -2,495 | -8,347 | -7,397 | ||||||||||
Amortization of prior service cost | 116 | 124 | 347 | -113 | -115 | -338 | ||||||||
Amortization of net loss | 545 | 1,347 | 3,070 | 4,138 | 66 | 165 | 247 | |||||||
Special termination benefit | 0 | [1] | -700 | 0 | 2,300 | 1,593 | 1,593 | |||||||
Settlement charge | 2,023 | 2,023 | ||||||||||||
Curtailment charge | 1,537 | 1,537 | ||||||||||||
Net periodic benefit cost (income) | ($354) | $4,235 | $4,610 | $8,894 | $204 | $194 | $736 | $2,255 | ||||||
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Assumptions_Used_Details
(Assumptions Used) (Details) (Pension Benefits [Member]) | 4 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Dec. 31, 2012 | |||
Pension Benefits [Member] | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount rate | 4.00% | [1] | 4.00% | [1] |
Rate of compensation increase | 4.00% | [1] | 4.00% | [1] |
Expected long-term rate of return on plan assets | 7.50% | [1] | 7.50% | [1] |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||
Discount rate | 4.00% | [1] | 4.50% | [1] |
Expected long-term rate of return on plan assets | 7.50% | [1] | 7.75% | [1] |
Rate of compensation increase | 4.00% | [1] | 4.00% | [1] |
[1] | This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post7
Pension Benefit and Other Postretirement Benefit Plans (Fair Value of Net Assets by Asset Category) (Details) (Pension Benefits [Member], USD $) | Jun. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | |||
In Thousands, unless otherwise specified | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | $157,379 | [1] | $156,741 | [2] | $143,540 | [1],[2] |
Pooled separate accounts [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 33,530 | [2] | 29,869 | [2] | ||
Mutual funds [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 106,619 | [2] | 98,269 | [2] | ||
Guaranteed deposit account [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | $16,592 | [2] | $15,402 | [2] | ||
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods | |||||
[2] | This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post8
Pension Benefit and Other Postretirement Benefit Plans (Assets Carried at Fair Value by Level) (Details) (Pension Benefits [Member], USD $) | Jun. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | |||
In Thousands, unless otherwise specified | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | $157,379 | [1] | $156,741 | [2] | $143,540 | [1],[2] |
Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 106,619 | [2] | 98,269 | [2] | ||
Fair Value, Inputs, Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 33,530 | [2] | 29,869 | [2] | ||
Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 16,592 | [2] | 15,402 | [2] | ||
Total Fair Value [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 156,741 | [2] | 143,540 | [2] | ||
Pooled separate accounts [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 33,530 | [2] | 29,869 | [2] | ||
Pooled separate accounts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 0 | [2] | 0 | [2] | ||
Pooled separate accounts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 33,530 | [2] | 29,869 | [2] | ||
Pooled separate accounts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 0 | [2] | 0 | [2] | ||
Pooled separate accounts [Member] | Total Fair Value [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 33,530 | [2] | 29,869 | [2] | ||
Mutual funds [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 106,619 | [2] | 98,269 | [2] | ||
Mutual funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 106,619 | [2] | 98,269 | [2] | ||
Mutual funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 0 | [2] | 0 | [2] | ||
Mutual funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 0 | [2] | 0 | [2] | ||
Mutual funds [Member] | Total Fair Value [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 106,619 | [2] | 98,269 | [2] | ||
Guaranteed deposit account [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 16,592 | [2] | 15,402 | [2] | ||
Guaranteed deposit account [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 0 | [2] | 0 | [2] | ||
Guaranteed deposit account [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 0 | [2] | 0 | [2] | ||
Guaranteed deposit account [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | 16,592 | [2] | 15,402 | [2] | ||
Guaranteed deposit account [Member] | Total Fair Value [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension assets | $16,592 | [2] | $15,402 | [2] | ||
[1] | This calculation was performed as of June 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods | |||||
[2] | This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Pension_Benefit_and_Other_Post9
Pension Benefit and Other Postretirement Benefit Plans (Summary of Changes in Fair Value of Guaranteed Deposit Account's Level 3 Assets) (Details) (Pension Benefits [Member], Guaranteed deposit account [Member], Fair Value, Inputs, Level 3 [Member], USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2013 | |
Pension Benefits [Member] | Guaranteed deposit account [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $15,402 | [1] |
Realized gains (losses) | 0 | [1] |
Unrealized gains relating to instruments still held at the reporting date | 1,177 | [1] |
Purchases, sales, issuances and settlements (net) | 13 | [1] |
Transfers in and/or out of Level 3 | 0 | [1] |
Ending Balance | $16,592 | [1] |
[1] | This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Recovered_Sheet1
Pension Benefit and Other Postretirement Benefit Plans (Estimated Future Payments) (Details) (Pension Benefits [Member], USD $) | Apr. 30, 2013 | |
In Thousands, unless otherwise specified | ||
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2014 | $8,441 | [1] |
2015 | 8,029 | [1] |
2016 | 8,209 | [1] |
2017 | 8,303 | [1] |
2018 | 8,595 | [1] |
2019-2023 | $48,629 | [1] |
[1] | This calculation was performed as of April 30, 2013 due to the pension freeze and we are not otherwise required to perform the calculation at interim periods |
Segment_Information_Additional
Segment Information (Additional Information) (Details) (Power Electronics Solutions [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Power Electronics Solutions [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating segments (segment) | 2 |
Segment_Information_Informatio
Segment Information (Information About Reportable Segments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Net sales | $142,820 | $129,134 | $401,252 | $374,584 |
Operating income (loss) | 19,009 | 10,329 | 37,931 | 18,839 |
Equity income in unconsolidated joint ventures | 1,754 | 1,773 | 3,045 | 3,735 |
Other income (expense), net | -101 | 19 | -867 | 140 |
Realized gain (loss) | 0 | 0 | 0 | -3,245 |
Interest income (expense), net | -881 | -1,104 | -2,616 | -3,366 |
Income (loss) before income tax expense (benefit) | 19,781 | 11,017 | 37,493 | 16,103 |
Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 142,820 | 129,134 | 401,252 | 374,584 |
Operating income (loss) | 19,009 | 10,329 | 37,931 | 18,839 |
Equity income in unconsolidated joint ventures | 1,754 | 1,773 | 3,045 | 3,735 |
Other income (expense), net | -101 | 19 | -867 | 140 |
Realized gain (loss) | 0 | 0 | 0 | -3,245 |
Interest income (expense), net | -881 | -1,104 | -2,616 | -3,366 |
Income (loss) before income tax expense (benefit) | 19,781 | 11,017 | 37,493 | 16,103 |
Reportable Segment [Member] | High Performance Foams [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 44,460 | 48,045 | 126,839 | 131,807 |
Operating income (loss) | 7,490 | 8,848 | 17,622 | 16,001 |
Reportable Segment [Member] | Printed Circuit Materials [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 47,105 | 43,437 | 136,253 | 123,352 |
Operating income (loss) | 5,857 | 3,195 | 13,651 | 5,971 |
Reportable Segment [Member] | Power Electronics Solutions [Member] | Curamik Electronics Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 32,137 | 22,050 | 83,951 | 70,250 |
Operating income (loss) | 986 | -2,394 | -4,650 | -5,371 |
Reportable Segment [Member] | Power Electronics Solutions [Member] | Power Distribution Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 13,191 | 9,395 | 36,460 | 31,484 |
Operating income (loss) | 2,824 | -325 | 5,473 | -840 |
Reportable Segment [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,927 | 6,207 | 17,749 | 17,691 |
Operating income (loss) | $1,852 | $1,005 | $5,835 | $3,078 |
Additional_Information_Details
(Additional Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Entity | Entity | |||
Schedule of Equity Method Investments [Line Items] | ||||
Number of joint ventures that are 50% owned (entity) | 2 | 2 | ||
Equity income related to joint ventures | $1,754 | $1,773 | $3,045 | $3,735 |
Rogers INOAC Corporation [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest in joint venture (percent) | 50.00% | 50.00% | ||
Rogers INOAC Suzhou Corporation [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest in joint venture (percent) | 50.00% | 50.00% |
Joint_Ventures_Accounted_for_U
Joint Ventures (Accounted for Under Equity Method of Accounting) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | -19 |
Rogers INOAC Corporation [Member] | JAPAN [Member] | High Performance Foams [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | -21 |
Rogers INOAC Suzhou Corporation [Member] | CHINA [Member] | High Performance Foams [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | -19 |
Joint_Ventures_Summarized_Info
Joint Ventures (Summarized Information for Joint Ventures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Net sales | $16,431 | $20,004 | $38,924 | $48,383 |
Gross profit (loss) | 4,989 | 5,973 | 10,189 | 13,517 |
Net income (loss) | $3,508 | $3,546 | $6,090 | $7,470 |
Debt_Additional_Information_De
Debt (Additional Information) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||||||||||||
Nov. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 13, 2011 | Dec. 31, 2010 | Nov. 23, 2010 | Dec. 31, 2012 | Jul. 31, 2011 | Sep. 30, 2013 | Jul. 13, 2011 | Sep. 30, 2013 | Jul. 31, 2012 | Jul. 13, 2011 | Jul. 31, 2011 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 31, 2011 | Jul. 31, 2011 | Jul. 13, 2011 | Jul. 13, 2011 | Jul. 13, 2011 | Jul. 13, 2011 | Sep. 30, 2013 | |
Minimum [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Bank Term Loan [Member] | Bank Term Loan [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Eurocurrency loans [Member] | Interest Rate Swap [Member] | ||||||||||||||
Cash Flow Hedging [Member] | Minimum [Member] | Maximum [Member] | Federal Funds Rate [Member] | One Month LIBOR [Member] | Bank Term Loan [Member] | Credit Agreement [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Credit agreement, maximum borrowing capacity | $165,000,000 | $265,000,000 | $100,000,000 | |||||||||||||||||||||||||||
Credit agreement, agreement period | 5 years | |||||||||||||||||||||||||||||
Credit agreement, maturity date | 23-Nov-14 | 13-Jul-16 | ||||||||||||||||||||||||||||
Reduction in interest costs | 0.25% | |||||||||||||||||||||||||||||
Size of permitted acquisitions | 25,000,000 | 100,000,000 | ||||||||||||||||||||||||||||
Permitted additional indebtedness | 20,000,000 | 120,000,000 | ||||||||||||||||||||||||||||
Revolving credit outstanding borrowings | 100,000,000 | |||||||||||||||||||||||||||||
Debt Instrument Lower Range Basis Spread On Variable Rate | 0.75% | 0.50% | ||||||||||||||||||||||||||||
Debt Instrument Higher Range Basis Spread On Variable Rate | 1.50% | 1.00% | ||||||||||||||||||||||||||||
Line of credit, interest rate description | The base reference rate is the greater of the prime rate; federal funds effective rate plus 50 basis points; and adjusted London interbank offered (“LIBOâ€) rate plus 100 basis points. | |||||||||||||||||||||||||||||
Line of credit, LIBOR rate, minimum spread | 1.75% | |||||||||||||||||||||||||||||
Line of credit, LIBOR rate, maximum spread | 2.50% | |||||||||||||||||||||||||||||
Unused commitment fee percentage | 0.20% | 0.35% | ||||||||||||||||||||||||||||
Payments commencement date | 30-Sep-11 | |||||||||||||||||||||||||||||
Covenants, leverage ratio | 3 | |||||||||||||||||||||||||||||
Leverage ratio | 1.03 | 1.03 | ||||||||||||||||||||||||||||
Fixed Charge Coverage Ratio Minimum | 2.23 | 1.93 | 2.23 | 1.93 | 2.06 | 2.27 | 2.18 | 1 | ||||||||||||||||||||||
Capitalized debt issuance costs | 100,000 | 700,000 | 1,600,000 | |||||||||||||||||||||||||||
Amortization expense, debt issue costs | 100,000 | 100,000 | 400,000 | 400,000 | ||||||||||||||||||||||||||
Capitalized debt issuance costs, net | 1,400,000 | 1,400,000 | ||||||||||||||||||||||||||||
Amount drawn on the line of credit to fund the acquisition of Curamik | 145,000,000 | |||||||||||||||||||||||||||||
Repayment of debt principal | 17,371,000 | 17,242,000 | 24,500,000 | 16,800,000 | ||||||||||||||||||||||||||
Required payment on debt obligation within the next 12 months | 16,300,000 | |||||||||||||||||||||||||||||
Repayments of Lines of Credit | 8,000,000 | |||||||||||||||||||||||||||||
Term loan debt | 81,300,000 | 81,300,000 | ||||||||||||||||||||||||||||
LIBOR in Effect at Period End | 0.19% | 0.19% | ||||||||||||||||||||||||||||
Interest rate spread over variable rate (percent) | 2.00% | 2.00% | 2.00% | |||||||||||||||||||||||||||
Irrevocable standby letters of credit | 1,400,000 | 1,400,000 | ||||||||||||||||||||||||||||
Letter guarantee | 100,000 | 100,000 | ||||||||||||||||||||||||||||
Fair value of interest rate swap liability | 800,000 | |||||||||||||||||||||||||||||
Option to buy out capital lease, year | 2013 | |||||||||||||||||||||||||||||
Capital lease, expiration date | 2021 | |||||||||||||||||||||||||||||
Capital lease obligation | 8,000,000 | 8,000,000 | ||||||||||||||||||||||||||||
Amortization expense related to the capital lease | 100,000 | 100,000 | 300,000 | 300,000 | ||||||||||||||||||||||||||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 1,000,000 | 1,000,000 | 800,000 | |||||||||||||||||||||||||||
Interest expense on outstanding debt | 500,000 | 800,000 | 1,700,000 | 2,300,000 | ||||||||||||||||||||||||||
Unused commitment fee | 100,000 | 100,000 | 300,000 | 300,000 | ||||||||||||||||||||||||||
Interest rate swap derivative, percentage of debt hedged (percent) | 65.00% | |||||||||||||||||||||||||||||
Interest expense on capital lease | $100,000 | $300,000 | $400,000 | $1,100,000 |
Debt_Aggregate_Payments_Detail
Debt (Aggregate Payments) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2011 | $2.50 |
2012 | 7.5 |
2013 | 12.5 |
2014 | 17.5 |
2015 | 35 |
2016 | $25 |
Debt_Fixed_Charge_Metrics_Deta
Debt (Fixed Charge Metrics) (Details) | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Amended Credit Facility [Member] | Amended Credit Facility [Member] | ||||||
Debt Disclosure [Line Items] | |||||||
Minimum fixed charge coverage ratio in 2012 | 1.25 | ||||||
Minimum fixed charge coverage ratio in 2013 | 1.5 | ||||||
Minimum fixed charge coverage ratio in 2014 and thereafter | 1.75 | ||||||
Covenant Limit | 1.5 | 1.5 | 1.5 | 1.25 | 1.25 | ||
Actual FCCR | 2.23 | 2.06 | 2.27 | 2.18 | 1.93 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Additional Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Amortization expense | $1.50 | $1.10 | $4.40 | $3.30 |
Anticipated future amortization expense for remainder of 2013 | 1.5 | 1.5 | ||
Anticipated future amortization expense for 2014 | 6.1 | 6.1 | ||
Anticipated future amortization expense for 2015 | 5.8 | 5.8 | ||
Anticipated future amortization expense for 2016 | 5.3 | 5.3 | ||
Anticipated future amortization expense for 2017 | 4.9 | 4.9 | ||
Curamik Electronics GmbH [Member] | Unclassified Indefinite-lived Intangible Assets [Member] | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible assets | $5.30 | $5.30 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $60,226 | $59,115 |
Accumulated Amortization | 15,686 | 11,045 |
Net Carrying Amount | 44,540 | 48,070 |
Trademarks and patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,057 | 1,065 |
Accumulated Amortization | 280 | 227 |
Net Carrying Amount | 777 | 838 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37,246 | 36,479 |
Accumulated Amortization | 11,969 | 8,394 |
Net Carrying Amount | 25,277 | 28,085 |
Covenant not-to-compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,032 | 1,042 |
Accumulated Amortization | 549 | 358 |
Net Carrying Amount | 483 | 684 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,891 | 20,529 |
Accumulated Amortization | 2,888 | 2,066 |
Net Carrying Amount | $18,003 | $18,463 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Weighted Average Amortization Period by Intangible Asset Class) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (years) | 7 years 11 months 24 days |
Trademarks and patents [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (years) | 9 years 9 months 30 days |
Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (years) | 6 years 9 months |
Covenant not-to-compete [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (years) | 4 years 4 months |
Customer relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (years) | 9 years 8 months |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | |
Beginning Balance | $105,041 |
Foreign currency translation adjustment | 1,846 |
Ending Balance | 106,887 |
High Performance Foams [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 23,973 |
Foreign currency translation adjustment | -159 |
Ending Balance | 23,814 |
Printed Circuit Materials [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 0 |
Foreign currency translation adjustment | 0 |
Ending Balance | 0 |
Curamik Electronics Solutions [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 78,844 |
Foreign currency translation adjustment | 2,005 |
Ending Balance | 80,849 |
Power Electronics Solutions [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 0 |
Foreign currency translation adjustment | 0 |
Ending Balance | 0 |
Other [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 2,224 |
Foreign currency translation adjustment | 0 |
Ending Balance | $2,224 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 |
LegalMatter | claim | claim | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Claims that Specify Amount of Damages Sought [Member] | Claims that Cite Jurisdictional Amounts [Member] | Claims that Specify Amount of Damages Sought not Based on Jurisdictional Requirements [Member] | Claims that Specify Amount of Damages Sought not Based on Jurisdictional Requirements [Member] | Claims that Specify Amount of Damages Sought not Based on Jurisdictional Requirements [Member] | Superfund Sites Proceedings [Member] | Superfund Sites Proceedings [Member] | PCB Contamination Proceedings [Member] | PCB Contamination Proceedings [Member] | PCB Contamination Proceedings [Member] | |
LegalMatter | LegalMatter | defendant | defendant | LegalMatter | LegalMatter | LegalMatter | Maximum [Member] | Legal Claim 1 [Member] | LegalMatter | Building [Member] | ||||||||
defendant | Compensatory [Member] | |||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Number of pending claims (legal matter) | 319 | 355 | 319 | 73 | 281 | 1 | 1 | |||||||||||
Estimated total cleanup costs, cost sharing percentage (percent) | 2.00% | |||||||||||||||||
Loss contingency, minimum possible loss | $18.80 | $17 | ||||||||||||||||
Loss contingency, maximum possible loss | 29.6 | 24 | ||||||||||||||||
Estimated total cleanup costs, accrual | 0.4 | |||||||||||||||||
Remediation and monitoring costs incurred since inception related to the PCB soil and building contamination | 2.5 | 0.8 | ||||||||||||||||
PCB contamination of the building, liability recording during the period | 1 | 0.2 | ||||||||||||||||
Percentage of pending claims (percent) | 1.00% | |||||||||||||||||
Number of defendants (defendant) | 1 | 833 | 21 | |||||||||||||||
Damages sought | 20 | |||||||||||||||||
Description of named defendants | Cases brought against us typically name 50-300 defendants | |||||||||||||||||
Number of claims dismissed | 81 | 94 | ||||||||||||||||
Number of claims settled (claim) | 9 | 16 | ||||||||||||||||
Claims settlements amount (claim) | 1.5 | 6.3 | ||||||||||||||||
Asbestos forcast claim period (years) | 5 years | 10 years | 10 years | 10 years | ||||||||||||||
Cost sharing agreement, expiration period (years) | 4 years | |||||||||||||||||
Cost sharing agreement, expiration date | 25-Jan-15 | |||||||||||||||||
Asbestos-related liabilities, estimated liability | 51.4 | 51.4 | ||||||||||||||||
Asbestos-related liabilities, estimated insurance recovery | 48.3 | 48.3 | ||||||||||||||||
Environmental expense and liabilities | 2.9 | |||||||||||||||||
Environmental remediation expense | $0.20 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (percent) | 31.40% | 436.70% | 30.30% | 297.20% | |
Decrease in deferred tax valuation allowance | $50 | ||||
Deferred tax valuation allowance | 46.6 | ||||
Reversal of valuation allowance related to sale of auction rate securities portfolio | 1.5 | ||||
Statutory rate (percent) | 35.00% | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits, interest and penalties accrued | 2.4 | 2.4 | |||
Unrecognized tax benefits | 20.7 | 20.7 | |||
Unrecognized tax benefits that would decrease the effective tax rate if recognized | $13.50 | $13.50 |
Restructuring_and_Impairment_C2
Restructuring and Impairment Charges (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Employee Severance [Member] | Employee Severance [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | Composite Material Division [Member] | Composite Material Division [Member] | Composite Material Division [Member] | Composite Material Division [Member] | Composite Material Division [Member] | Composite Material Division [Member] | Bremen, Germany [Member] | Bremen, Germany [Member] | Bremen, Germany [Member] | Bremen, Germany [Member] | Bremen, Germany [Member] | Bremen, Germany [Member] | Bremen, Germany [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | ||||||
Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | High Performance Foams [Member] | |||||||||||||||||||
Lease Contract Termination [Member] | Employee Severance [Member] | Asset Impairments [Member] | Equipment Removal and Transportation [Member] | ||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||
Severance and other employee related costs | $1,600,000 | $1,200,000 | $3,000,000 | $94,000 | [1] | $0 | [1] | $1,345,000 | [1] | $3,088,000 | [1] | $1,400,000 | $1,500,000 | $3,100,000 | $900,000 | $800,000 | $400,000 | $300,000 | |||||||||||
Net sales associated with the discontinued operations | 0 | 5,300,000 | 1,100,000 | 200,000 | 3,700,000 | 4,800,000 | |||||||||||||||||||||||
Curtailment charge | $1,537,000 | $1,537,000 | |||||||||||||||||||||||||||
[1] | For the nine month period ended September 30, 2013, this includes a pension curtailment charge of $1.5 million. For the nine month period ended September 30, 2012, this includes a net charge of $1.6 million, related to the early retirement program implemented in the first quarter of 2012. See Note 8 - "Pension Benefits and Other Post Retirement Plans" for further information. |
Restructuring_and_Impairment_C3
Restructuring and Impairment Charges (Restructuring and Impairment Charges) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Total restructuring charges for cost of sales | $0 | $318 | $368 | $1,454 | |||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 1,600 | ||||||||
Total charges for restructuring and impairment | 1,231 | 1,766 | 5,756 | 9,949 | |||||
High Performance Foams [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Accelerated depreciation expense | 0 | 179 | 0 | 764 | |||||
Inventory impairment | 0 | 0 | 0 | 191 | |||||
Union ratification bonus | 0 | 181 | 0 | ||||||
Restructuring and Impairment | |||||||||
Fixed asset impairment for Bisco and Poron asset disposal | 0 | 0 | 0 | 79 | |||||
Printed Circuit Materials [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Union ratification bonus | 0 | 179 | 0 | ||||||
Power Electronics Solutions [Member] | Curamik Electronics Solutions [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Union ratification bonus | 0 | 5 | 0 | ||||||
Power Electronics Solutions [Member] | Power Distribution Systems [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Accelerated depreciation expense | 0 | 139 | 0 | 499 | |||||
Union ratification bonus | 0 | 3 | 0 | ||||||
Restructuring and Impairment | |||||||||
Impairment of investment related receivable | 0 | 0 | 0 | 264 | |||||
Other [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Inventory impairment | 0 | 0 | 0 | 0 | |||||
Pension Benefits [Member] | |||||||||
Restructuring and Impairment | |||||||||
Curtailment charge | 1,537 | 1,537 | |||||||
Employee Severance [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 1,200 | 3,000 | |||||||
Employee Severance [Member] | High Performance Foams [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 94 | [1] | 0 | [1] | 1,345 | [1] | 3,088 | [1] | |
Employee Severance [Member] | Printed Circuit Materials [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 93 | [1] | 0 | [1] | 802 | [1] | 3,046 | [1] | |
Employee Severance [Member] | Power Electronics Solutions [Member] | Curamik Electronics Solutions [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 877 | [1] | 506 | 2,495 | [1] | 1,463 | |||
Employee Severance [Member] | Power Electronics Solutions [Member] | Power Distribution Systems [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 154 | [1] | 27 | [1] | 999 | [1] | 504 | [1] | |
Employee Severance [Member] | Other [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | 13 | [1] | 0 | [1] | 115 | [1] | 272 | [1] | |
Facility Closing [Member] | High Performance Foams [Member] | |||||||||
Restructuring and Impairment | |||||||||
Severance and other employee related costs | $0 | $1,233 | $0 | $1,233 | |||||
[1] | For the nine month period ended September 30, 2013, this includes a pension curtailment charge of $1.5 million. For the nine month period ended September 30, 2012, this includes a net charge of $1.6 million, related to the early retirement program implemented in the first quarter of 2012. See Note 8 - "Pension Benefits and Other Post Retirement Plans" for further information. |
Restructuring_and_Impairment_C4
Restructuring and Impairment Charges (Summary of Severance Accrual Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $5,109 |
Provisions | 4,124 |
Payments | -7,821 |
Ending Balance | 1,412 |
Streamlining and restructuring related activities [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 1,142 |
Provisions | 4,124 |
Payments | -3,854 |
Ending Balance | 1,412 |
Curamik finishing operations relocated to Hungary [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 3,967 |
Provisions | 0 |
Payments | -3,967 |
Ending Balance | $0 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | |
Thernal Management Solutions [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income (loss) from discontinued operations, net of income taxes | $0 | $0 | ($100,000) | |||
Net sales associated with the discontinued operations | 0 | 100,000 | ||||
Composite Material Division [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 100,000 | -200,000 | |||
Net sales associated with the discontinued operations | 0 | 5,300,000 | 1,100,000 | 200,000 | 3,700,000 | 4,800,000 |
Discontinued operations, tax effect | $100,000 | $100,000 |