Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | ROGERS CORP | ||
Entity Trading Symbol | ROG | ||
Entity Central Index Key | 84,748 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Season Filer | Yes | ||
Entity Common Stock, Shares Outstanding | 18,316,440 | ||
Entity Public Float | $ 1,963,793,036 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 821,043 | $ 656,314 | $ 641,443 |
Cost of sales | 502,468 | 406,829 | 406,081 |
Gross margin | 318,575 | 249,485 | 235,362 |
Selling, general and administrative expenses | 160,011 | 136,317 | 131,463 |
Research and development expenses | 29,547 | 28,582 | 27,644 |
Restructuring and asset impairment charges | 3,567 | 734 | 0 |
Gain on sale of long-lived assets | (5,329) | 0 | 0 |
Operating income | 130,779 | 83,852 | 76,255 |
Equity income in unconsolidated joint ventures | 4,898 | 4,146 | 2,890 |
Other income (expense), net | 3,379 | (1,788) | (8,492) |
Interest expense, net | (6,131) | (3,930) | (4,480) |
Income before income tax expense | 132,925 | 82,280 | 66,173 |
Income tax expense | 52,466 | 33,997 | 19,853 |
Net income | $ 80,459 | $ 48,283 | $ 46,320 |
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 4.43 | $ 2.68 | $ 2.52 |
Diluted earnings per share (in dollars per share) | $ 4.34 | $ 2.65 | $ 2.48 |
Shares used in computing: | |||
Basic earnings per share (in shares) | 18,154 | 17,991 | 18,371 |
Diluted earnings per share (in shares) | 18,547 | 18,223 | 18,680 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 80,459 | $ 48,283 | $ 46,320 |
Foreign currency translation adjustments | 28,463 | (5,081) | (27,172) |
Derivative instruments designated as cash flow hedges: | |||
Unrealized gain (loss) on derivative instruments held at year end (net of taxes of $15 in 2017, $0 in 2016, $5 in 2015) | 26 | 0 | (2) |
Unrealized gain reclassified into earnings | 0 | 11 | 84 |
Accumulated other comprehensive income (loss) pension and post-retirement benefits: | |||
Actuarial net gain (loss) incurred in fiscal year, net of tax (Note 4) | (1,481) | 1,106 | 2,760 |
Amortization of gain, net of tax (Note 4) | 99 | 160 | 966 |
Other comprehensive income (loss) | 27,107 | (3,804) | (23,364) |
Comprehensive income | $ 107,566 | $ 44,479 | $ 22,956 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on derivative instruments, tax | $ 15 | $ 0 | $ 5 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 181,159 | $ 227,767 |
Accounts receivable, less allowance for doubtful accounts of $1,525 and $1,952 | 140,562 | 119,604 |
Inventories | 112,557 | 91,130 |
Prepaid income taxes | 3,087 | 3,020 |
Asbestos-related insurance receivables | 5,682 | 7,099 |
Assets held for sale | 896 | 871 |
Other current assets | 10,580 | 8,910 |
Total current assets | 454,523 | 458,401 |
Property, plant and equipment, net of accumulated depreciation | 179,611 | 176,916 |
Investments in unconsolidated joint ventures | 18,324 | 16,183 |
Deferred income taxes | 6,008 | 14,634 |
Goodwill | 237,107 | 208,431 |
Other intangible assets, net of amortization | 160,278 | 136,676 |
Asbestos-related insurance receivables | 63,511 | 41,295 |
Other long-term assets | 5,772 | 3,964 |
Total assets | 1,125,134 | 1,056,500 |
Current liabilities | ||
Accounts payable | 36,116 | 28,379 |
Accrued employee benefits and compensation | 39,394 | 28,953 |
Accrued income taxes payable | 6,408 | 10,921 |
Current portion of long-term debt | 0 | 3,653 |
Current portion of lease obligations | 579 | 350 |
Current portion of asbestos-related liabilities | 5,682 | 7,099 |
Other accrued liabilities | 25,629 | 21,830 |
Total current liabilities | 113,808 | 101,185 |
Borrowings under credit facility | 130,982 | 235,877 |
Long-term lease obligations | 5,873 | 4,993 |
Pension liability | 8,720 | 8,501 |
Retiree health care and life insurance benefits | 1,685 | 1,992 |
Asbestos-related liabilities | 70,500 | 44,883 |
Non-current income tax | 12,823 | 6,238 |
Deferred income taxes | 10,706 | 13,883 |
Other long-term liabilities | 3,464 | 3,162 |
Commitments and Contingencies (Note 15) | ||
Shareholders’ Equity | ||
Capital Stock - $1 par value; 50,000 authorized shares; 18,255 and 18,021 shares outstanding | 18,255 | 18,021 |
Additional paid-in capital | 128,933 | 118,678 |
Retained earnings | 684,540 | 591,349 |
Accumulated other comprehensive loss | (65,155) | (92,262) |
Total shareholders' equity | 766,573 | 635,786 |
Total liabilities and shareholders' equity | $ 1,125,134 | $ 1,056,500 |
CONSOLIDATED STATEMENTS OF FIN6
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, less allowance for doubtful accounts | $ 1,525 | $ 1,952 |
Capital Stock, par value (in dollars per share) | $ 1 | $ 1 |
Capital Stock, authorized shares | 50,000,000 | 50,000,000 |
Capital Stock, shares outstanding | 18,255,000 | 18,021,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Capital Stock/Capital Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2014 | $ 587,281 | $ 18,404 | $ 137,225 | $ 496,746 | $ (65,094) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 46,320 | 46,320 | |||
Other comprehensive income (loss) | (23,364) | (23,364) | |||
Stock options exercised | 6,967 | 175 | 6,792 | ||
Stock issued to directors | 0 | 16 | (16) | ||
Shares issued for employees stock purchase plan | 727 | 13 | 714 | ||
Shares issued for vested restricted stock units, net of cancellations for tax withholding | (2,740) | 77 | (2,817) | ||
Shares repurchased | (39,993) | (728) | (39,265) | ||
Tax shortfalls on share-based compensation | (259) | (259) | |||
Equity compensation expense | 9,643 | 9,643 | |||
Ending Balance at Dec. 31, 2015 | 584,582 | 17,957 | 112,017 | 543,066 | (88,458) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 48,283 | 48,283 | |||
Other comprehensive income (loss) | (3,804) | (3,804) | |||
Stock options exercised | 4,143 | 95 | 4,048 | ||
Stock issued to directors | 0 | 24 | (24) | ||
Shares issued for employees stock purchase plan | 858 | 23 | 835 | ||
Shares issued for vested restricted stock units, net of cancellations for tax withholding | (1,377) | 63 | (1,440) | ||
Shares repurchased | (7,995) | (141) | (7,854) | ||
Tax adjustments on share-based compensation | (179) | (179) | |||
Equity compensation expense | 11,275 | 11,275 | |||
Ending Balance at Dec. 31, 2016 | 635,786 | 18,021 | 118,678 | 591,349 | (92,262) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 80,459 | 80,459 | |||
Other comprehensive income (loss) | 27,107 | 27,107 | |||
Stock options exercised | 3,085 | 83 | 3,002 | ||
Stock issued to directors | 0 | 15 | (15) | ||
Shares issued for employees stock purchase plan | 895 | 15 | 880 | ||
Shares issued for vested restricted stock units, net of cancellations for tax withholding | (5,309) | 121 | (5,430) | ||
Shares repurchased | 0 | ||||
Tax adjustments on share-based compensation | 12,732 | 12,732 | |||
Equity compensation expense | 11,818 | 11,818 | |||
Ending Balance at Dec. 31, 2017 | $ 766,573 | $ 18,255 | $ 128,933 | $ 684,540 | $ (65,155) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net income | $ 80,459 | $ 48,283 | $ 46,320 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 44,099 | 37,847 | 34,054 |
Equity compensation expense | 11,818 | 11,275 | 9,643 |
Deferred income taxes | 17,513 | 7,382 | 3,668 |
Equity in undistributed income of unconsolidated joint ventures | (4,898) | (4,146) | (2,890) |
Dividends received from unconsolidated joint ventures | 3,529 | 2,757 | 3,463 |
Pension and postretirement benefits | (1,561) | (2,822) | (1,512) |
Gain on the sale of property, plant and equipment | (5,329) | 0 | 0 |
Loss from the disposal of property, plant and equipment | 175 | 225 | 295 |
Asbestos-related charges | 3,400 | 313 | (256) |
Impairment of assets/investments | 807 | 0 | 150 |
Bad debt expense | (439) | 1,321 | 1,085 |
Loss on disposition of a business | 0 | 0 | 4,819 |
Proceeds from insurance related to operations | 932 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (14,059) | (13,005) | 8,971 |
Inventories | (14,208) | 9,689 | (10,608) |
Pension and postretirement benefit contributions | (906) | (842) | (7,737) |
Other current assets | (576) | 1,933 | (1,278) |
Accounts payable and other accrued expenses | 12,341 | 21,472 | (17,632) |
Other, net | 5,885 | (4,715) | 3,367 |
Net cash provided by operating activities | 138,982 | 116,967 | 73,922 |
Investing Activities: | |||
Capital expenditures | (27,215) | (18,136) | (24,837) |
Proceeds from insurance claims | 1,041 | 275 | 2,682 |
Proceeds from the sale of property, plant and equipment, net | 8,095 | 0 | 0 |
Other investing activities | 0 | 0 | (1,000) |
Proceeds from the sale of a business | 0 | 0 | 1,265 |
Acquisition of business, net of cash received | (60,191) | (133,943) | (158,407) |
Net cash used in investing activities | (78,270) | (151,804) | (180,297) |
Financing Activities: | |||
Proceeds from long-term borrowings | 0 | 166,000 | 125,000 |
Repayment of debt principal and long-term lease obligation | (110,689) | (103,760) | (6,641) |
Line of credit issuance costs | (1,169) | 0 | (293) |
Repurchases of capital stock | 0 | (7,995) | (39,993) |
Proceeds from sale of capital stock, net | 3,085 | 4,143 | 6,967 |
Payments of taxes related to net share settlement of equity awards | (5,309) | (1,377) | (2,740) |
Proceeds from issuance of shares to employee stock purchase plan | 895 | 858 | 727 |
Net cash (used in) provided by financing activities | (113,187) | 57,869 | 83,027 |
Effect of exchange rate fluctuations on cash | 5,867 | 149 | (9,441) |
Net (decrease) increase in cash and cash equivalents | (46,608) | 23,181 | (32,789) |
Cash and cash equivalents at beginning of year | 227,767 | 204,586 | 237,375 |
Cash and cash equivalents at end of year | 181,159 | $ 227,767 | $ 204,586 |
Supplemental Disclosures: | |||
Interest, net of amounts capitalized | 5,787 | ||
Income taxes | $ 36,918 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and our wholly‑owned subsidiaries, after elimination of inter-company accounts and transactions. In 2015, we changed our method for accounting for certain inventory items from the last in, first out (LIFO) method to the first in, first out (FIFO) method. Adjustments have been made to all periods and amounts presented to appropriately reflect the retrospective application of this accounting change. See the discussion below entitled “Inventories” for further information. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Organization Our reporting structure is comprised of the following operating segments: Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS) and Power Electronics Solutions (PES). The remaining operations are accumulated and reported as our Other operating segment. • Advanced Connectivity Solutions Our ACS operating segment designs, develops, manufactures and sells circuit materials and solutions enabling high-performance and high-reliability connectivity for applications in wireless communications infrastructure (e.g., power amplifiers, antennas, small cells and distributed antenna systems), automotive (e.g., active safety, advanced driver assistance systems, telematics and thermal management), connected devices, (e.g., mobile internet devices and Internet of Things), wired infrastructure (e.g., computing, servers and storage), consumer electronics and aerospace/defense. We sell our circuit materials under various trade names, including RO3000 ® , RO4000 ® , RT/duroid ® , AD Series TM and CLTE Series TM . Our ACS operating segment has manufacturing and administrative facilities in Chandler, Arizona; Rogers, Connecticut; Bear, Delaware; Evergem, Belgium; and Suzhou, China. • Elastomeric Material Solutions Our EMS operating segment designs, develops, manufactures and sells elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications including general industrial, portable electronics (e.g., mobile internet devices), consumer goods (e.g., protective sports equipment), automotive, mass transportation, construction and printing applications. We sell our elastomeric materials under various trade names, including DeWAL™, ARLON ® , PORON ® , XRD ® , BISCO ® , eSORBA ® , HeatSORB™, and Diversified Silicone Products. In November 2016, we acquired DeWAL Industries, a leading manufacturer of polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes and specialty products, and in January 2017, we acquired the principal operating assets of Diversified Silicone Products, Inc. (DSP), a custom silicone product development and manufacturing business. The acquisitions of DeWAL and DSP, and their subsequent integration into our EMS operating segment, has enabled us to extend the product portfolio and technology capabilities with complementary high-end, high performance elastomeric materials. As of December 31, 2017 , our EMS operating segment had administrative and manufacturing facilities in Woodstock, Connecticut; Rogers, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Santa Fe Springs, California; Ansan, Korea, and Suzhou, China. We also own 50% of (1) Rogers Inoac Corporation (RIC), a joint venture established in Japan to design, develop, manufacture and sell PORON products predominantly for the Japanese market and (2) Rogers INOAC Suzhou Corporation (RIS), a joint venture established in China to design, develop, manufacture and sell PORON products primarily for RIC customers in various Asian countries. INOAC Corporation owns the remaining 50% of both RIC and RIS. RIC has manufacturing facilities at INOAC facilities in Nagoya and Mie, Japan, and RIS has manufacturing facilities at Rogers’ facilities in Suzhou, China. • Power Electronics Solutions Our PES operating segment designs, develops, manufactures and sells ceramic substrate materials for power module applications (e.g., variable frequency drives, vehicle electrification and renewable energy), laminated busbars for power inverter and high power interconnect applications (e.g., mass transit, hybrid-electric and electric vehicles, renewable energy and variable frequency drives), and micro-channel coolers (e.g., laser cutting equipment). We sell our ceramic substrate materials and micro channel coolers under the curamik ® trade name, and our busbars under the ROLINX ® trade name. Our PES operating segment has administrative and manufacturing facilities in Ghent, Belgium; Eschenbach, Germany; Budapest, Hungary; and Suzhou, China. • Other Our Other operating segment consists of elastomer components for applications in ground transportation, office equipment, consumer and other markets; elastomer floats for level sensing in fuel tanks, motors, and storage tanks; and inverters for portable communications and automotive markets. Trade names for our elastomer components include: NITROPHYL ® floats for level sensing in fuel tanks, motors, and storage tanks and ENDUR ® elastomer rollers. The Arlon polyimide and thermoset laminate business was also included within our Other operating segment prior to its divestiture in December 2015. Cash Equivalents Highly liquid investments with original maturities of three months or less are considered cash equivalents. These investments are stated at cost, which approximates fair value. Investments in Unconsolidated Joint Ventures We account for our investments in and advances to unconsolidated joint ventures, all of which are 50% owned, using the equity method of accounting. Foreign Currency All balance sheet accounts of foreign subsidiaries are translated or remeasured at exchange rates in effect at each year end, and income statement items are translated using the average exchange rates for the year. Translation adjustments for those entities that operate under a local currency are recorded directly to a separate component of shareholders’ equity, while remeasurement adjustments for those entities that operate under the parent’s functional currency are recorded to the income statement as a component of “other income (expense), net.” Currency transaction gains and losses are reported as income or expense, respectively, in the consolidated statements of operations as a component of “other income (expense), net.” Such adjustments resulted in gains of $0.9 million in 2017 and $0.3 million in 2015 . Such adjustments resulted in a loss of $2.7 million in 2016 . Allowance for Doubtful Accounts The allowance for doubtful accounts is determined based on a variety of factors that affect the potential collectability of the related receivables, including the length of time receivables are past due, customer credit ratings, financial stability of customers, specific one-time events and past customer history. In addition, in circumstances where we are made aware of a specific customer’s inability to meet its financial obligations, a specific allowance is established. The majority of accounts are individually evaluated on a regular basis and appropriate reserves are established as deemed appropriate based on the criteria previously mentioned. The remainder of the reserve is based on management’s estimates and takes into consideration historical trends, market conditions and the composition of our customer base. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first in, first out (FIFO) method. An allowance is made for estimated losses due to obsolescence. The allowance is determined for groups of products based on purchases in the recent past and/or expected future demand and market conditions. Abnormal amounts of idle facility expense and waste are not capitalized in inventory. The allocation of fixed production overheads to the inventory cost is based on the normal capacity of the production facilities. Inventories consisted of the following: As of December 31, (Dollars in thousands) 2017 2016 Raw materials $ 43,092 $ 29,788 Work-in-process 28,133 26,440 Finished goods 41,332 34,902 Total inventories $ 112,557 $ 91,130 Property, Plant and Equipment Property, plant and equipment are stated on the basis of cost. For financial reporting purposes, provisions for depreciation are calculated on a straight‑line basis over the following estimated useful lives of the underlying assets: Years Buildings and improvements 30-40 Machinery and equipment 5-15 Office equipment 3-10 Software Costs We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, and (ii) compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which approximates three to five years. Net capitalized software and development costs were $4.7 million and $7.7 million for the years ended December 31, 2017 and 2016 , respectively. Capitalized software is included within “Property, plant and equipment, net of accumulated depreciation” in the consolidated statements of financial position. Goodwill and Other Intangible Assets We have made acquisitions over the years that included the recognition of intangible assets. Intangible assets are classified into three categories: (1) goodwill; (2) other intangible assets with definite lives subject to amortization; and (3) other intangible assets with indefinite lives not subject to amortization. Other intangible assets can include items such as trademarks and trade names, licensed technology, customer relationships and covenants not to compete, among other things. Each definite-lived other intangible asset is amortized over its respective economic useful life using the economic attribution method. Goodwill is tested for impairment annually and between annual impairment tests if events or changes in circumstances indicate the carrying value may be impaired. If it is more likely than not that our goodwill is impaired, then we compare the estimated fair value of each of our reporting units to their respective carrying value. If a reporting unit’s carrying value is greater than its fair value, then an impairment is recognized for the excess and charged to operations. We currently have four reporting units with goodwill: ACS, EMS, curamik® and Elastomer Components Division (ECD). Consistent with historical practice, the annual impairment test on these reporting units was performed as of November 30, 2017. The application of the annual goodwill impairment test requires significant judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units and determination of the fair value of each reporting unit. Determining the fair value is subjective and requires the use of significant estimates and assumptions, including financial projections for net sales, gross margin and operating margin, discount rates, terminal year growth rates and future market conditions, among others. We estimated the fair value of our reporting units using an income approach based on the present value of future cash flows through a five year discounted cash flow analysis. The discounted cash flow analysis utilized the discount rates for each of the reporting units ranging from 11.0% for EMS to 12.3% for curamik®, and a terminal year growth rate of 3% for all four reporting units. We believe this approach yields the most appropriate evidence of fair value as our reporting units are not easily compared to other corporations involved in similar businesses. We further believe that the assumptions and rates used in our annual goodwill impairment test are reasonable, but inherently uncertain. There were no impairment charges resulting from our goodwill impairment analysis in 2017. The ACS, EMS, curamik® and ECD reporting units had allocated goodwill of approximately $51.7 million , $111.6 million , $71.6 million and $2.2 million , respectively, at December 31, 2017 . Indefinite-lived other intangible assets are tested for impairment annually and between annual impairment tests if events or changes in circumstances indicate the carrying value may be impaired. If it is more likely than not that an indefinite-lived other intangible asset is impaired, then we compare the estimated fair value of that indefinite-lived other intangible asset to its respective carrying value. If an indefinite-lived other intangible asset’s carrying value is greater than its fair value, then the definite-lived other intangible asset's carrying value is compared to its estimated fair value and an impairment charge is recognized for the excess and charged to operations. The application of the annual indefinite-lived other intangible asset impairment test requires significant judgment, including the determination of fair value of each indefinite-lived other intangible asset. Fair value is primarily based on income approaches using discounted cash flow models, which have significant assumptions. Such assumptions are subject to variability from year to year and are directly impacted by global market conditions. There were no impairment charges resulting from our indefinite-lived other intangible assets impairment analysis in 2017. The curamik® reporting unit had an indefinite-lived other intangible asset of approximately $4.7 million at December 31, 2017 . Definite-lived other intangible assets are tested for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. The recoverability test involves comparing the estimated sum of the undiscounted cash flows for each definite-lived other intangible asset to its respective carrying value. If a definite-lived other intangible asset’s carrying value is greater than the sum of its undiscounted cash flows, then an impairment is recognized for the excess and charged to operations. The application of the recoverability test requires significant judgment, including the identification of the asset group and determination of undiscounted cash flows and fair value of the underlying definite-lived other intangible asset. Determination of undiscounted cash flows requires the use of significant estimates and assumptions, including certain financial projections. Fair value is primarily based on income approaches using discounted cash flow models, which have significant assumptions. Such assumptions are subject to variability from year to year and are directly impacted by global market conditions. There were no impairment charges resulting from our definite-lived other intangible assets impairment analysis in 2017. The ACS, EMS and curamik® reporting units had definite-lived other intangible assets of approximately $11.1 million , $128.1 million and $16.4 million , respectively, at December 31, 2017 . Environmental and Product Liabilities We accrue for our environmental investigation, remediation, operating and maintenance costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For environmental matters, the most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. For sites with multiple potential responsible parties (PRPs), we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. When no amount within a range of estimates is more likely to occur than another, we accrue to the low end of the range and disclose the range. When future liabilities are determined to be reimbursable by insurance coverage, an accrual is recorded for the potential liability and a receivable is recorded for the estimated insurance reimbursement amount. We are exposed to the uncertain nature inherent in such remediation and the possibility that initial estimates will not reflect the final outcome of a matter. We periodically perform a formal analysis to determine potential future liability and related insurance coverage for asbestos-related matters. 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. We believe the assumptions used in our models for determining our potential exposure and related insurance coverage are reasonable at the present time, but such assumptions are inherently uncertain. Prior to 2017, due to the inherent uncertainties of the projection process and our limited amount of settlement and claims history, we utilized a ten -year projection period, which we concluded was appropriate as we did not believe we had sufficient data to justify a longer projection period. During 2017, we reviewed the projections of our current and future asbestos claims, and determined it was appropriate to extend the liability projection period to cover all current and future claims through 2058. We based our conclusion on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expectation of a downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy. The year 2058 also represents the expected end of Rogers’ asbestos liability exposure and no further ongoing claims are expected past that date. As a result, we believe we are now able to make a reasonable estimate of the actuarially determined liability for current and future asbestos claims through 2058. As of December 31, 2017, the estimated liability and estimated insurance recovery for all current and future claims projected through 2058 was $76.2 million and $69.2 million , respectively. Given the inherent uncertainty in making projections, we plan to re-examine periodically the projections of current and future asbestos claims, and we will update them if needed based on our experience, changes in the assumptions underlying our models, and other relevant factors, such as changes in the tort system. 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 may incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves and insurance recovery. Fair Value of Financial Instruments Management believes that the carrying values of financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value based on the maturities of these instruments. The fair value of our borrowings under credit facility are determined using discounted cash flows based upon our estimated current interest cost for similar type borrowings or current market value, which falls under Level 2 of the fair value hierarchy. Based on our credit ratings at December 31, 2017, borrowings would generally bear interest at LIBOR plus 100 basis points. As the current borrowings under our Third Amended Credit Agreement bear interest at adjusted 1-month LIBOR plus 100 basis points, we believe the carrying value of our borrowings approximates fair value. See Note 2, “Fair Value Measurements” for further information on the calculation of fair value measurements. Concentration of Credit and Investment Risk We extend credit on an uncollateralized basis to almost all customers. Concentration of credit and geographic risk with respect to accounts receivable is limited due to the large number and general dispersion of accounts that constitute our customer base. We routinely perform credit evaluations on our customers. At December 31, 2017 and 2016 , there were no customers that individually accounted for more than ten percent of total accounts receivable. We have purchased credit insurance coverage for certain accounts receivable. We did not experience significant credit losses on customers’ accounts in 2017 , 2016 or 2015 . We are subject to credit and market risk by using derivative instruments. 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. We seek to minimize counterparty credit (or repayment) risk by entering into derivative transactions with major financial institutions with investment grade credit ratings. We invest excess cash principally in investment grade government securities and time deposits. We have established guidelines relative to diversification and maturities in order to maintain safety and liquidity. These guidelines are periodically reviewed and modified to reflect changes in market conditions. Income Taxes We are subject to income taxes in the United States and in numerous foreign jurisdictions. The Company accounts for income taxes following ASC 740 (Accounting for Income Taxes) recognizing deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of a deferred tax asset will not be realized. As a result of the U.S. Tax Reform, all post-1986 undistributed foreign subsidiary earnings and profits (E&P) as of December 31, 2017 have been subjected to U.S. tax through the transition tax. Our unremitted foreign earnings could be subject to additional income taxes if they are redeployed outside of their country of origin. With the exception of certain of our Chinese subsidiaries, we have historically and continue to assert that foreign earnings are indefinitely reinvested. While we have not currently changed our assertion with respect to foreign earnings compared to prior years, we are currently evaluating the impact of U.S. Tax Reform on our global structure and any associated impacts it may have on our assertion on a go forward basis and as such have not included a provisional estimate of the impact. See Note 13, “Income Taxes”, for additional regarding U.S. Tax Reform. The U.S. Tax Reform Act includes two new U.S. tax base erosion provisions, the GILTI provisions and the BEAT provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2017. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. Starting January 1, 2018, the Company will account for BEAT in the period in which it is incurred to the extent the Company is subject to it. We record benefits for uncertain tax positions based on an assessment of whether it is more likely than not that the tax positions will be sustained by the taxing authorities. If this threshold is not met, no tax benefit of the uncertain position is recognized. If the threshold is met, we recognize the largest amount of the tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement. We recognize interest and penalties within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated statements of financial position. Revenue Recognition We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the product has shipped and title and risk of ownership have passed, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured. We consider that the criteria for revenue recognition have been met upon shipment of the finished product, based on the majority of our shipping terms. Some shipping terms require the goods to be through customs or be received by the customer before title passes. In those instances, revenue is not recognized until either the customer has received the goods or they have passed through customs, depending on the circumstances. As appropriate, we record estimated reductions to revenue for customer returns and allowances and warranty claims. Provisions for such allowances are made at the time of sale and are typically derived from historical trends and other relevant information. See further discussion in Note 19, “Recent Accounting Standards” to “Item 8 - Financial Statements and Supplementary Data.” Shipping and Handling Charges Costs that we incur for shipping and handling charges are charged to “Cost of sales” and payments received from our customers for shipping and handling charges are included in “Net sales” on our consolidated statements of operations. Pension and Retiree Health Care and Life Insurance Benefits We provide various defined benefit pension plans for our U.S. employees and we sponsor multiple fully insured or self-funded medical plans and fully insured life insurance plans for retirees. In 2013, the defined benefit pension plans were frozen, so that future benefits no longer accrue. The costs and obligations associated with these plans are dependent upon various actuarial assumptions used in calculating such amounts. These assumptions include discount rates, long-term rate of return on plan assets, mortality rates, and other factors. The assumptions used in these models are determined as follows: (i) the discount rate used is based on the PruCurve index; (ii) the long-term rate of return on plan assets is determined based on historical portfolio results, market results and our expectations of future returns, as well as current market assumptions related to long-term return rates; and (iii) the mortality rate is based on a mortality projection that estimates current longevity rates and their impact on the long-term plan obligations. We review these assumptions periodically throughout the year and update as necessary. In October 2017, the Company merged two of its defined benefit pension plans (collectively the merged Rogers Plan). The Company currently intends to terminate the merged Rogers Plan and has requested a determination letter from the Internal Revenue Service (IRS). The termination of the merged Rogers Plan remains subject to final approval by both management and the IRS. At this time, there are no plans to terminate the remaining pension plan. The Company lacks sufficient information as of December 31, 2017 to determine the financial impact of the proposed plan termination. See Note 10, “Pension Benefits and Retirement Health and Life Insurance Benefits” for further information. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31, (In thousands, except per share amounts) 2017 2016 2015 Numerator: Net income $ 80,459 $ 48,283 $ 46,320 Denominator: Weighted-average shares outstanding - basic 18,154 17,991 18,371 Effect of dilutive shares 393 232 309 Weighted-average shares outstanding - diluted 18,547 18,223 18,680 Basic earnings per share: $ 4.43 $ 2.68 $ 2.52 Diluted earnings per share: $ 4.34 $ 2.65 $ 2.48 Certain potential options to purchase shares were excluded from the calculation of diluted weighted-average shares outstanding because the exercise price was greater than the average market price of our capital stock during the year. For 2015, 44,350 shares were excluded. No shares were excluded in 2017 and 2016. Hedging Activity From time to time, we use derivative instruments to manage commodity, interest rate and foreign currency exposures. Derivative instruments are viewed as risk management tools and are not used for trading or speculative purposes. To qualify for hedge accounting treatment, derivatives used for hedging purposes must be designated and deemed effective as a hedge of the identified underlying risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in the fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. Derivatives used to hedge forecasted cash flows associated with interest rates, foreign currency commitments, or forecasted commodity purchases are accounted for as cash flow hedges. For those derivative instruments that qualify for hedge accounting treatment, if the hedge is highly effective, all changes in the fair value of the derivative hedging instrument are recorded in other comprehensive income. The derivative hedging instrument will be reclassified to earnings when the hedged item impacts earnings. For those derivative instruments that do not qualify for hedge accounting treatment, any related gains and losses are recognized in the consolidated statements of operations as a component of “other income (expense), net.” Advertising Costs Advertising is expensed as incurred and amounted to $4.4 million for 2017 , $3.0 million for 2016 and $3.2 million for 2015 . Equity Compensation Equity compensation is comprised of restricted stock units and stock options. Performance-based restricted stock unit compensation expense is based on achievement of certain performance and service conditions. The fair value of the awards is determined based on the market value of the underlying stock price at the grant date and marked to market over the vesting period based on probabilities and projections of the underlying performance measures. Time-based restricted stock units compensation is expensed over the vesting period, which is typically three years . The fair value of the awards is determined based on the market value of the underlying stock price at the grant date. Stock option fair value is measured at the grant date, based on the grant-date fair value of the awards ultimately expected to vest and, in most cases, is recognized as an expense on a straight-line basis over the vesting period, which is typically four years . A provision in our stock option agreements requires us to accelerate the expense for retirement eligible employees, as any unvested options would immediately vest upon retirement for such employees. We develop estimates used in calculating the grant-date fair value of stock options to determine the amount of equity compensation to be recorded. We calculate the grant-date fair value using the Black-Scholes valuation model. The use of this valuation model requires estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield and forfeiture rates. We previousl |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
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 contracts, interest rate swaps and copper derivative contracts. Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, include: Derivative Instruments at Fair Value as of December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Foreign currency contracts $ — $ (396 ) $ — $ (396 ) Copper derivative contracts $ — $ 2,016 $ — $ 2,016 Interest rate swap $ — $ 41 $ — $ 41 Derivative Instruments at Fair Value as of December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Foreign currency contracts $ — $ (170 ) $ — $ (170 ) Copper derivative contracts $ — $ 1,277 $ — $ 1,277 For further discussion on our derivative contracts, see Note 3, “Hedging Transactions and Derivative Financial Instruments.” |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS We are exposed to certain risks related to our ongoing business operations. The primary risks being managed through our use of derivative instruments are foreign currency exchange rate risk and commodity pricing risk (primarily related to copper). During the first quarter of 2017, we also entered into an interest rate swap to hedge interest rate risk. We do not use derivative financial instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of these risks is described below: • Foreign Currency - The fair value of any foreign currency derivative is based upon valuation models applied to current market information such as strike price, spot rate, maturity date and volatility, and by reference to market values resulting from an over-the-counter market or obtaining market data for similar instruments with similar characteristics. • 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. 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 hedge accounting treatment as defined under the applicable accounting guidance. For derivative instruments that are designated and qualify for hedge accounting treatment as cash flow hedges (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 consolidated statements of operations associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. As of December 31, 2017 only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge. The Company adopted ASU 2017-12 on October 1, 2017 and recognized $0.2 million in gains in the statement of operations in the fourth quarter of 2017. This gain was recorded to reverse losses resulting from hedge ineffectiveness previously reclassified to the statement of operations from other comprehensive income during the second and third quarters of 2017. See Note 19, “Recent Accounting Standards,” for more information on the adoption of ASU 2017-12. For the year ended December 31, 2017 , there was hedge ineffectiveness of approximately $0.3 million . As of December 31, 2016 , we did not have any contracts designated as cash flow hedges. Foreign Currency In 2017 , we entered into Korean Won, Japanese Yen, Euro, Hungarian Forint and Chinese Renminbi forward contracts. We entered into these foreign currency forward contracts to mitigate certain global transactional exposures. These contracts do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “other income (expense), net” in our consolidated statements of operations. As of December 31, 2017 the notional values of these foreign currency forward contracts were: Notional Values of Foreign Currency Derivatives KRW/USD ₩ 4,503,980,000 EUR/CNY € 1,049,585 JPY/EUR ¥ 325,000,000 EUR/USD € 7,068,140 EUR/HUF € 563,119 USD/CNY $ 12,828,710 Commodity As of December 31, 2017 , we had twenty-one outstanding contracts to hedge exposure related to the purchase of copper in our PES and ACS operating segments. These contracts are held with financial institutions and minimize the risk associated with a potential rise in copper prices. These contracts are intended to provide some coverage over the forecasted 2018 monthly copper exposure and do not qualify for hedge accounting treatment. As a result, any fair value adjustments required on these contracts are recorded in “other income (expense), net” in our consolidated statements of operations. As of December 31, 2017 , the volume of our copper contracts outstanding were: Volume of Copper Derivatives January 2018 - March 2018 140 metric tons per month April 2018 - June 2018 153 metric tons per month July 2018 - September 2018 153 metric tons per month October 2018 - December 2018 119 metric tons per month Interest Rates In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. This transaction has been designated as a cash flow hedge and qualifies for hedge accounting treatment. See Note 12, “Debt” for further discussion regarding the credit facility. Effects on Statements of Operations and Statements of Comprehensive Income (Loss): (Dollars in thousands) The Effect of Derivative Instruments on the Financial Statements for the year ended December 31, 2017 Fair Values of Derivative Instruments as of December 31, 2017 Foreign Exchange Contracts Location Gain/(Loss) Other Assets Contracts not designated as hedging instruments Other income (expense), net $ (7 ) $ (396 ) Copper Derivative Instruments Contracts not designated as hedging instruments Other income (expense), net $ 1,928 $ 2,016 Interest Rate Swap Instrument Contracts designated as hedging instruments Other comprehensive income (loss) $ 41 $ 41 (Dollars in thousands) The Effect of Derivative Instruments on the Financial Statements for the year ended December 31, 2016 Fair Values of Derivative Instruments as of December 31, 2016 Foreign Exchange Contracts Location Gain/(Loss) Other Assets Contracts not designated as hedging instruments Other income (expense), net $ (170 ) $ (170 ) Copper Derivative Instruments Contracts not designated as hedging instruments Other income (expense), net $ 625 $ 1,277 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component for the year ended December 31, 2017 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, 2016 $ (46,446 ) $ (45,816 ) $ — $ (92,262 ) Other comprehensive income before reclassifications 28,463 — 26 28,489 Actuarial net gain (loss) incurred in the fiscal year — (1,481 ) — (1,481 ) Amounts reclassified from accumulated other comprehensive income — 99 — 99 Net current-period other comprehensive income 28,463 (1,382 ) 26 27,107 Ending Balance December 31, 2017 $ (17,983 ) $ (47,198 ) $ 26 $ (65,155 ) (1) Net of taxes of $9,563 and $9,160 for the years ended December 31, 2017 and December 31, 2016 , respectively. (2) Net of taxes of $15 and $0 for the years ended December 31, 2017 and December 31, 2016 , respectively. The changes in accumulated other comprehensive income (loss) by component for the year ended December 31, 2016 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, 2015 $ (41,365 ) $ (47,082 ) $ (11 ) $ (88,458 ) Other comprehensive income before reclassifications (5,081 ) — — (5,081 ) Actuarial net gain (loss) incurred in the fiscal year — 1,106 — 1,106 Amounts reclassified from accumulated other comprehensive income — 160 11 171 Net current-period other comprehensive income (5,081 ) 1,266 11 (3,804 ) Ending Balance December 31, 2016 $ (46,446 ) $ (45,816 ) $ — $ (92,262 ) (1) Net of taxes of $9,160 and $9,879 for the years ended December 31, 2016 and December 31, 2015 , respectively. (2) Net of taxes of $0 and $5 for the years ended December 31, 2016 and December 31, 2015 , respectively. The reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2017 were as follows: Details about accumulated other comprehensive income components Amounts reclassified to/from accumulated other comprehensive income (loss) for the period ended December 31, 2017 Affected line item in the statement where net income is presented Unrealized gains and losses on derivative instruments: $ 41 Other income (expense), net (15 ) Income tax expense $ 26 Net of tax Amortization of defined benefit pension and other post-retirement benefit items: Actuarial losses (gains) $ 154 Total before tax (1) (55 ) Income tax expense $ 99 Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 10, “Pension Benefits and Retirement Health and Life Insurance Benefits” for additional details. The reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2016 were as follows: Details about accumulated other comprehensive income components Amounts reclassified from accumulated other comprehensive income (loss) for the period ended December 31, 2016 Affected line item in the statement where net income is presented Unrealized gains and losses on derivative instruments: $ 16 Other income (expense), net (5 ) Income tax expense $ 11 Net of tax Amortization of defined benefit pension and other post-retirement benefit items: Actuarial losses (gains) $ 246 Total before tax (1) (86 ) Income tax expense $ 160 Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 10, “Pension Benefits and Other Postretirement Benefit Plans” for additional details. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Diversified Silicone Products On January 6, 2017, we acquired the principal operating assets of DSP, pursuant to the terms of the Asset Purchase Agreement by and among the Company, DSP and the principal shareholders of DSP (the Purchase Agreement). Pursuant to the terms of the Purchase Agreement, we acquired certain assets and assumed certain liabilities of DSP for a total purchase price of approximately $60.2 million . We used borrowings of $30.0 million under our credit facility in addition to cash on hand to fund the acquisition. DSP is a custom silicone product development and manufacturing business and expands the portfolio of the EMS operating segment in cellular sponge and specialty extruded silicone profile technologies, while strengthening existing expertise in precision-calendered silicone and silicone formulating and compounding. The acquisition has been accounted for in accordance with applicable purchase accounting guidance. We recorded goodwill primarily related to the expected synergies from combining operations and the value of the existing workforce. We also recorded other intangible assets related to acquired customer relationships, developed technology, trademarks, and a covenant not to compete. As of the filing date of this Form 10-K, the process of valuing the net assets of the business is complete. The following table represents the fair values assigned to the acquired assets and liabilities in the transaction: (Dollars in thousands) January 6, 2017 Assets: Accounts receivable $ 2,724 Prepaid expenses 21 Inventory 2,433 Property, plant & equipment 1,589 Other intangible assets 35,860 Goodwill 17,793 Total assets 60,420 Liabilities: Accounts payable 179 Accrued expenses 50 Total liabilities 229 Fair value of net assets acquired $ 60,191 The other intangible assets consist of customer relationships valued at $30.5 million , developed technology valued at $1.8 million , trademarks valued at $3.3 million , and a covenant not to compete valued at $0.3 million . The fair value of acquired identified other intangible assets was determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate. These inputs are considered Level 3 under the fair value measurements and disclosure guidance. The weighted average amortization period for the other intangible asset classes are 11.8 years for customer relationships, 4.3 years for developed technology, 11.7 years for trademarks, and 4.1 years for a covenant not to compete, resulting in amortization expenses ranging from $1.1 million to $2.0 million annually. The estimated annual future amortization expense is $1.9 million for 2018 , $1.8 million for each of 2019 , 2020 , and 2021 and $1.7 million for 2022 . During 2017 , we incurred transaction costs of $0.5 million related to the DSP acquisition, which were recorded within selling, general and administrative expenses in the consolidated statements of operations. The results of DSP have been included in our consolidated financial statements only for the period subsequent to the completion of the acquisition on January 6, 2017, through December 31, 2017 . DSP’s net sales for the three and twelve months ended December 31, 2017 totaled $5.5 million and $22.3 million , respectively. DeWAL On November 23, 2016, we acquired all of the membership interests in DeWAL Industries LLC (DeWAL), pursuant to the terms of the Membership Interest Purchase Agreement, dated November 23, 2016, by and among the Company and the owners of DeWAL for an aggregate purchase price of $135.5 million . We used borrowings of $136.0 million under our credit facility to fund the acquisition. DeWAL is a leading manufacturer of polytetrafluoroethylene and ultra-high molecular weight polyethylene films, pressure sensitive tapes and specialty products for the industrial, aerospace, automotive, and electronics markets. The acquisition has been accounted for in accordance with applicable purchase accounting guidance. We recorded goodwill, primarily related to the expected synergies from combining operations and the value of the existing workforce. We also recorded other intangible assets primarily related to customer relationships, developed technology, trademarks, and a covenant not to compete. As of the filing date of this Form 10-K, the process of valuing the net assets of the business is complete. The following table represents the fair values assigned to the acquired assets and liabilities in the transaction: (Dollars in thousands) November 23, 2016 Assets: Cash and cash equivalents $ 1,539 Accounts receivable 7,513 Other current assets 691 Inventory 9,915 Property, plant & equipment 9,932 Other intangible assets 73,500 Goodwill 35,985 Other long-term assets 101 Total assets 139,176 Liabilities: Accounts payable 2,402 Other current liabilities 1,292 Total liabilities 3,694 Fair value of net assets acquired $ 135,482 The other intangible assets consist of customer relationships valued at $46.7 million , developed technology valued at $22.0 million , trademarks valued at $4.3 million , and a covenant not to compete valued at $0.5 million . The fair value of acquired identified other intangible assets was determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate. These inputs are considered Level 3 under the fair value measurements and disclosure guidance. The weighted average amortization period for the other intangible asset classes are 13.5 years for customer relationships, 8.6 years for developed technology, 5.2 years for trademarks, and 3.8 years for a covenant not to compete, resulting in amortization expenses ranging from $2.4 million to $4.3 million , annually. The future estimated annual amortization expense is $3.7 million for 2018, $4.1 million for 2019, and $4.3 million for 2020, 2021, and 2022. During 2017 , we incurred transaction costs of $0.1 million related to the DeWAL acquisition, which were recorded within selling, general and administrative expenses in the consolidated statements of operations. In 2016, we incurred transaction costs of $2.1 million related to this acquisition. DeWAL’s net sales totaled $62.0 million and $5.4 million for the years ended December 31, 2017 and 2016 , respectively. Arlon On January 22, 2015, we completed the acquisition of Arlon and its subsidiaries, other than Arlon India (Pvt) Limited (collectively, “Arlon”), pursuant to the terms of the Stock Purchase Agreement, dated December 18, 2014, by and among the Company, Handy & Harman Group, Ltd. and its subsidiary Bairnco Corporation, as amended, (the “Arlon Purchase Agreement”). Pursuant to the terms of the Arlon Purchase Agreement, we acquired Arlon and assumed certain liabilities related to the acquisition for an aggregate purchase price of approximately $157.0 million . We used borrowings of $125.0 million under our bank credit facility in addition to cash on hand to fund the acquisition. Arlon manufactures high performance materials for the printed circuit board industry and silicone rubber-based materials. The acquisition has been accounted for in accordance with applicable purchase accounting guidance. We recorded goodwill, primarily related to the expected synergies from combining operations and the value of the existing workforce. We also recorded other intangible assets related to trademarks, technology and customer relationships. As of the filing date of this Form 10-K, the process of valuing the net assets of the business is complete. The following table represents the fair values assigned to the acquired assets and liabilities in the transaction: (Dollars in thousands) January 22, 2015 Assets: Cash and cash equivalents $ 142 Accounts receivable 17,301 Other current assets 856 Inventory 9,916 Deferred income tax assets, current 1,084 Property, plant & equipment 30,667 Other intangible assets 50,020 Goodwill 85,565 Other long-term assets 106 Total assets 195,657 Liabilities: Accounts payable 4,958 Other current liabilities 4,385 Deferred tax liability 23,225 Other long-term liabilities 4,540 Total liabilities 37,108 Fair value of net assets acquired $ 158,549 The other intangible assets consist of developed technology valued at $15.8 million , customer relationships valued at $32.7 million and trademarks valued at $1.6 million . The fair value of acquired identified other intangible assets was determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate. These inputs are considered Level 3 under the fair value measurements and disclosure guidance. The weighted average amortization period for the other intangible asset classes are 5.7 years for developed technology, 6.0 years for customer relationships and 3.2 years for trademarks, resulting in amortization expenses ranging from $1.8 million to $5.8 million annually. The estimated annual future amortization expense is $5.8 million for each of the years ending 2018 and 2019 . During 2015 , we incurred transaction costs of $1.5 million related to the Arlon acquisition, which were recorded within selling, general and administrative expenses on the consolidated statements of operations. The results of Arlon have been included in our consolidated financial statements only for the period subsequent to the completion of our acquisition. During the year ended December 31, 2015, net sales attributable to Arlon totaled $100.0 million and operating income attributable to Arlon totaled $25.1 million . On December 21, 2015 we sold an Arlon business, which makes polyimide and thermoset epoxy laminate products. This operation was acquired as part of our acquisition of Arlon. The operations were previously reported with our Other operating segment. We received proceeds of $1.3 million and recognized a loss of $4.8 million , which was recorded in “other income (expense), net” within the consolidated statements of operations. Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations of Rogers, DSP, DeWAL and Arlon as if the DSP acquisition had occurred on January 1, 2016, the DeWAL acquisition occurred on January 1, 2015, and the Arlon acquisition occurred on January 1, 2014. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the DSP, DeWAL and Arlon acquisitions been completed as of January 1, 2016, January 1, 2015 and January 1, 2014, respectively, and should not be taken as indicative of our future consolidated results of operations. For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net sales $ 821,043 $ 724,877 $ 693,462 Net income 81,184 50,349 41,976 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT As of December 31, (Dollars in thousands) 2017 2016 Land $ 14,620 $ 15,855 Buildings and improvements 135,191 138,493 Machinery and equipment 238,000 220,238 Office equipment 56,554 54,013 444,365 428,599 Accumulated depreciation (289,909 ) (259,178 ) Property, plant and equipment, net 154,456 169,421 Equipment in process 25,155 7,495 Total property, plant and equipment, net $ 179,611 $ 176,916 Depreciation expense was $29.3 million in 2017 , $26.6 million in 2016 and $23.2 million in 2015 . In the first quarter of 2017, we completed the planned sale of a parcel of land in Belgium that had been classified as held for sale as of December 31, 2016 and recognized a gain on sale of approximately $0.9 million in operating income. In the second quarter of 2017, we began actively marketing for sale unutilized property in the United States consisting of a building and an adjacent parcel of land with a net book value of $0.9 million . The asset is no longer being depreciated and is classified as held for sale as of December 31, 2017 . In the third quarter of 2017, we completed the sale of a facility located in Belgium and recognized a gain on sale of approximately $4.4 million in operating income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill On January 6, 2017, we acquired DSP. For further detail on the goodwill recorded on the acquisition date, see Note 5, “Acquisitions.” The changes in the carrying amount of goodwill for the period ending December 31, 2017 , by operating segment, were as follows: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total December 31, 2016 $ 51,693 $ 91,531 $ 62,983 $ 2,224 $ 208,431 Purchase accounting adjustment — 346 — — 346 DSP acquisition — 17,793 — — 17,793 Foreign currency translation adjustment — 1,905 8,632 — 10,537 December 31, 2017 $ 51,693 $ 111,575 $ 71,615 $ 2,224 $ 237,107 Annual Impairment Testing We perform our annual goodwill impairment testing in the fourth quarter of the year. In 2017 , we estimated the fair value of our reporting units using an income approach based on the present value of future cash flows. We believe this approach yields the most appropriate evidence of fair value as our reporting units are not easily compared to other corporations involved in similar businesses. We further believe that the assumptions and rates used in our annual impairment test are reasonable, but inherently uncertain. We currently have four reporting units with goodwill - ACS, EMS, curamik ® and the Elastomer Components Division (ECD). Other Intangible Assets On January 6, 2017, we acquired DSP. For further detail on the other intangible assets recorded on the acquisition, see Note 5, “Acquisitions.” The changes in the carrying amount of other intangible assets for the two-year period ending December 31, 2017 , were as follows: December 31, 2017 December 31, 2016 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 128,907 $ 22,514 $ 106,393 $ 96,148 $ 14,311 $ 81,837 Technology 73,891 33,491 40,400 68,880 24,365 44,515 Trademarks and patents 10,213 2,157 8,056 6,825 1,156 5,669 Covenant not to compete 1,799 1,108 691 1,419 932 487 Total definite-lived other intangible assets 214,810 59,270 155,540 173,272 40,764 132,508 Indefinite-lived other intangible asset 4,738 — 4,738 4,168 — 4,168 Total other intangible assets $ 219,548 $ 59,270 $ 160,278 $ 177,440 $ 40,764 $ 136,676 In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations. The indefinite-lived trademark other intangible asset was acquired in our acquisition of Curamik Electronics GmbH and is assessed for impairment annually or when events or changes in circumstances indicate that the carrying value may not be recoverable. The definite-lived other intangible assets are amortized using a fair value methodology that is based on the projected economic use of the related underlying asset. In the fourth quarter of 2017, we recognized a $0.5 million impairment charge related to the remaining net book value of an other intangible asset within our ROLINX® product line in our PES operating segment. Amortization expense was approximately $14.8 million , $11.2 million and $10.9 million in 2017 , 2016 and 2015 , respectively. The estimated annual future amortization expense is $15.3 million , $15.1 million , $11.8 million , $11.1 million and $10.7 million in 2018 , 2019 , 2020 , 2021 and 2022 , respectively. These amounts could vary based on changes in foreign currency exchange rates. The weighted average amortization period as of December 31, 2017 , by definite-lived other intangible asset class, is presented in the table below: Definite-Lived Other Intangible Asset Class Weighted Average Amortization Period Customer relationships 9.6 Technology 5.4 Trademarks and patents 6.5 Covenant not to compete 2.5 Total definite-lived other intangible assets 8.3 |
Summarized Financial Informatio
Summarized Financial Information of Unconsolidated Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Joint Ventures | SUMMARIZED FINANCIAL INFORMATION OF UNCONSOLIDATED JOINT VENTURES As of December 31, 2017 , we had two joint ventures, each 50% owned, which are accounted for under the equity method of accounting. Joint Venture Location Operating Segment Fiscal Year-End Rogers INOAC Corporation (RIC) Japan Elastomeric Material Solutions October 31 Rogers INOAC Suzhou Corporation (RIS) China Elastomeric Material Solutions December 31 Equity income related to the joint ventures of $4.9 million , $4.1 million and $2.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, is included in the consolidated statements of operations. The summarized financial information for the joint ventures for the periods indicated was as follows: As of December 31, (Dollars in thousands) 2017 2016 Current assets $ 40,934 $ 33,951 Noncurrent assets $ 4,947 $ 5,545 Current liabilities $ 9,519 $ 7,485 Shareholders’ equity $ 36,362 $ 32,011 For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net sales $ 54,597 $ 47,321 $ 43,438 Gross profit $ 21,462 $ 16,829 $ 11,993 Net income $ 9,796 $ 8,292 $ 5,753 Receivables from and payables to joint ventures arise during the normal course of business from transactions between us and the joint ventures. We had receivables of $3.7 million and $2.4 million as of December 31, 2017 and 2016 , respectively, which were included in accounts receivable on our consolidated statements of financial position. We had payables of $2.1 million and $1.6 million as of December 31, 2017 and 2016 , respectively, which were included in accounts payable on our consolidated statements of financial position. |
Share Repurchase
Share Repurchase | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
SHARE REPURCHASE | SHARE REPURCHASE On August 6, 2015 , we initiated a share repurchase program of up to $100.0 million of the Company’s capital stock. We initiated this program to mitigate potentially dilutive effects of stock options and shares of restricted stock granted by the Company, in addition to enhancing shareholder value. The share repurchase program has no expiration date, and may be suspended or discontinued at any time without notice. As of December 31, 2017 , $52.0 million remained of our $100.0 million share repurchase program. No shares of capital stock were repurchased during 2017 . We repurchased the following shares of capital stock through our share repurchase program during the years presented below: For the Years Ended December 31, (Dollars in thousands) 2017 2016 Shares of capital stock repurchased — 140,498 Value of capital stock repurchased $ — $ 7,995 All previous repurchases were made using cash from operations and cash on hand. Refer to “Item 5 - Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” for further detail of the share repurchase program. |
Pension Benefit and Retirement
Pension Benefit and Retirement Health and Life Insurance Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension Benefit and Retirement Health and Life Insurance Benefits | PENSION BENEFITS AND RETIREMENT HEALTH AND LIFE INSURANCE BENEFITS During 2017, we had three qualified noncontributory defined benefit pension plans: 1) the Rogers Corporation Employee’s Pension Plan for unionized hourly employees (the Union Plan); 2) the Rogers Corporation Defined Benefit Pension Plan for all other U.S. employees hired before December 31, 2007 who are salaried employees or non-union hourly employees (the Rogers Plan); and 3) the Hourly Employees Pension Plan of Arlon Inc., Microwave Material and Silicone Technologies Divisions, Bear, Delaware for employees of the acquired Arlon business (the Bear Plan). Effective October 31, 2017, the Bear Plan was merged into the Rogers Plan (the Merged Plan). The Company also maintains the Rogers Corporation Amended and Restated Pension Restoration Plan effective as of January 1, 2004 and the Rogers Corporation Amended and Restated Pension Restoration Plan effective as of January 1, 2005 (collectively, the Nonqualified Plans). The Nonqualified Plans serve 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. In addition, we sponsor multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31 for each respective plan year. We are required, as an employer, to: (a) recognize in our consolidated statements 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 (loss) and amortized into net periodic pension cost in future periods. Defined Benefit Pension Plan Amendments and Retiree Medical Plan Amendments During the fourth quarter of 2015, we changed the benefits related to the salaried and non-union hourly participants of the retirement health insurance benefits program. This program had been frozen to new participants in 2007. The 2015 amendment to the plan was approved on October 2, 2015 and resulted in a negative prior service cost, which is being amortized over the average expected remaining years of future benefit payments for this group. This change resulted in a remeasurement event requiring us to remeasure the plan liabilities, as well as the expense related to the plan, as of October 31, 2015. All qualified noncontributory defined benefit pension plans have ceased accruing benefits. The Bear Plan was frozen previous to our acquisition of Arlon. Effective June 30, 2013, for salaried and non-union hourly employees in the United States, and effective December 31, 2013 for union employees in the United States, benefits under the Rogers Plan and the Union Plan no longer accrue. Pension Plan Merger and Proposed Termination The Company currently intends to terminate the Merged Plan and has requested a determination letter from the Internal Revenue Service (IRS). The termination of the Merged Plan remains subject to final approval by both management and the IRS. The Company plans to provide for lump sum distributions or annuity payments in connection with the termination of the Merged Plan and we expect the settlement process to be completed in late 2018 or early 2019. The Company lacks sufficient information as of December 31, 2017 to determine the financial impact of the proposed plan termination. At this time, there are no plans to terminate the remaining Union Plan. (Dollars in thousands) Pension Benefits Retirement Health and Life Insurance Benefits Change in benefit obligation: 2017 2016 2017 2016 Benefit obligation at beginning of year $ 177,696 $ 182,359 $ 2,504 $ 2,722 Service cost — — 80 133 Interest cost 7,356 7,530 71 75 Actuarial (gain) loss 9,601 (3,621 ) 460 72 Benefit payments (8,893 ) (8,572 ) (533 ) (498 ) Plan amendment — — (545 ) — Benefit obligation at end of year $ 185,760 $ 177,696 $ 2,037 $ 2,504 Change in plan assets: 2017 2016 2017 2016 Fair value of plan assets at the beginning of the year $ 171,778 $ 171,007 $ — $ — Actual return on plan assets 16,799 8,999 — — Employer contributions 372 344 533 498 Benefit payments (8,893 ) (8,572 ) (533 ) (498 ) Fair value of plan assets at the end of the year 180,056 171,778 — — Unfunded status $ (5,704 ) $ (5,918 ) $ (2,037 ) $ (2,504 ) Amounts included in the consolidated statements of financial position consist of: (Dollars in thousands) Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Noncurrent assets $ 3,021 $ 2,583 $ — $ — Current liabilities (5 ) — (352 ) (512 ) Noncurrent liabilities (8,720 ) (8,501 ) (1,685 ) (1,992 ) Net amount recognized at end of year $ (5,704 ) $ (5,918 ) $ (2,037 ) $ (2,504 ) (Dollars in thousands) Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Net actuarial (loss) gain $ (59,645 ) $ (59,377 ) $ 63 $ 523 Prior service benefit — — 2,821 3,878 Net amount recognized at end of year $ (59,645 ) $ (59,377 ) $ 2,884 $ 4,401 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 $155.8 million , $155.8 million and $147.1 million , respectively, as of December 31, 2017 and $148.6 million , $148.6 million and $140.1 million , respectively, as of December 31, 2016 . The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with plan assets in excess of an accumulated benefit obligation were $30.0 million , $30.0 million and $33.0 million , respectively, as of December 31, 2017 . For 2016 , the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with plan assets in excess of an accumulated benefit obligation were $29.1 million , $29.1 million and $31.7 million , respectively. Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Postretirement Health and Life Insurance Benefits 2017 2016 2015 2017 2016 2015 Service cost $ — $ — — $ 80 $ 133 $ 411 Interest cost 7,356 7,530 7,523 71 75 216 Expected return of plan assets (9,221 ) (10,808 ) (11,148 ) — — — Amortization of prior service cost (credit) — — — (1,602 ) (1,489 ) (248 ) Amortization of net loss 1,755 1,784 1,690 — (47 ) (12 ) Settlement charge — — 57 — — — Net periodic benefit cost (benefit) $ (110 ) $ (1,494 ) $ (1,878 ) $ (1,451 ) $ (1,328 ) $ 367 The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $1.8 million . The estimated net benefit for the defined benefit postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $1.6 million . Weighted-average assumptions used to determine benefit obligations at December 31: Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Discount rate 3.70 % 4.25 % 3.25 % 3.25 % Weighted-average assumptions used to determine net benefit cost for the years ended December 31: Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Discount rate 3.70 % 4.25 % 3.25 % 3.00 % Expected long-term rate of return on plan assets 4.94 % 5.51 % — — Rate of compensation increase - An expected rate of compensation increase was not included in the weighted average assumptions as there would be no impact to the net benefit cost, as the plans have been previously frozen. Discount rate - To determine the discount rate, we review current market indices of high quality corporate bonds, particularly the PruCurve 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. The market-based rates are modified to be Rogers-specific, which is done by applying our pension benefit cash flow projections to the generic index rate. 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. Health care cost trend rates - For measurement purposes as of December 31, 2017 we assumed annual health care cost trend rates of 7.25% and 7.25% for covered health care benefits for retirees pre-age 65 and post-age 65 , respectively. The rates were assumed to decrease gradually by 0.25% annually until reaching 4.50% and 4.50% , respectively, and remain at those levels thereafter. For measurement purposes as of December 31, 2016 , we assumed annual health care cost trend rates of 7.50% and 7.50% for covered health care benefits for retirees pre-age 65 and post-age 65 , respectively. Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one -percentage point change in assumed health care cost trend rates would be expected to have the following effects: (Dollars in thousands) Increase Decrease Effect on total service and interest cost $ 9 $ (9 ) Effect on other postretirement benefit obligations 68 (63 ) Plan Assets 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 is partially mitigated 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. In November of 2014 we implemented a pension risk reduction strategy related to our investments, which included a change in our asset mix to hold a larger amount of fixed income securities. At December 31, 2017 , we held approximately 4% equity securities and 96% fixed income and short-term cash securities in our portfolio, compared to December 31, 2016 when we held approximately 27% equity securities and 73% fixed income securities. In determining our investment strategy and calculating the net benefit cost, we utilized 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 7.4% over the past 20 year period. Based on the historical returns and the projected future returns we determined that a target return of 4.9% is appropriate for the current portfolio. Investments were stated at fair value as of the dates reported. The following table presents the fair value of the pension plan net assets by asset category as of December 31, 2017 and 2016 : (Dollars in thousands) 2017 2016 Pooled separate accounts $ 4,610 $ 7,587 Fixed income bonds 162,934 111,070 Mutual funds 6,223 44,054 Guaranteed deposit account 6,289 9,067 Total assets at fair value $ 180,056 $ 171,778 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 was 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 were 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 other assets of the Company for investment purposes. The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value as of December 31, 2017 and 2016 . Assets at Fair Value as of December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Pooled separate accounts $ — $ 4,610 $ — $ 4,610 Fixed income bonds — 162,934 — 162,934 Mutual funds 6,223 — — 6,223 Guaranteed deposit account — — 6,289 6,289 Total assets at fair value $ 6,223 $ 167,544 $ 6,289 $ 180,056 Assets at Fair Value as of December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Pooled separate accounts $ — $ 7,587 $ — $ 7,587 Fixed income bonds — 111,070 — 111,070 Mutual funds 44,054 — — 44,054 Guaranteed deposit account — — 9,067 9,067 Total assets at fair value $ 44,054 $ 118,657 $ 9,067 $ 171,778 The table below sets forth a summary of changes in the fair value of the guaranteed deposit account’s Level 3 assets for the year ended December 31, 2017 : (Dollars in thousands) Guaranteed Deposit Account Balance at beginning of year $ 9,067 Unrealized gains relating to instruments still held at the reporting date 216 Purchases, sales, issuances and settlements (net) (2,994 ) Balance at end of year $ 6,289 Cash Flows Contributions We made required contributions of $0.4 million and $0.3 million to our qualified defined benefit pension plans in 2017 and 2016 , respectively. We did not make any voluntary contributions to our defined benefit pension plans in 2017 or 2016. As there is no funding requirement for the nonqualified defined benefit pension plans nor the Retiree Health and Life Insurance benefit plans, we fund the amount of benefit payments made during the year. Estimated Future Payments The following pension benefit payments are expected to be paid through the utilization of plan assets for the funded plans and from the Company’s operating cash flows for the unfunded plans. The Retiree Health and Life Insurance benefits, for which no funding has been made, are expected to be paid from the Company’s operating cash flows. The benefit payments are based on the same assumptions used to measure our benefit obligation at the end of fiscal 2017 . (Dollars in thousands) Pension Benefits Retiree Health and Life Insurance Benefits 2018 $ 9,261 $ 352 2019 $ 9,335 $ 316 2020 $ 9,423 $ 267 2021 $ 9,644 $ 174 2022 $ 9,956 $ 128 2023-2027 $ 52,676 $ 795 |
Employee Savings and Investment
Employee Savings and Investment Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | |
Employee Savings and Investment Plans | EMPLOYEE SAVINGS AND INVESTMENT PLANS We sponsor the Rogers Employee Savings and Investment Plan (RESIP), a 401(k) plan for domestic employees. Employees can defer an amount they choose, up to the yearly IRS limit of $18,000 . Certain eligible participants are also allowed to contribute the maximum catch-up contribution per IRS regulations. Our matching contribution is 6% of an eligible employee’s annual pre-tax contribution at a rate of 100% for the first 1% and 50% for the next 5% for a total match of 3.5% . Unless otherwise indicated by the participant, the matching dollars are invested in the same funds as the participant’s contributions. RESIP related expense amounted to $4.0 million in 2017 , $3.0 million in 2016 and $3.2 million in 2015 , which related solely to our matching contributions. We acquired DSP in January 2017 and eligible DSP employees were included in the RESIP as of the third quarter of 2017. Compensation expense related to the additional DSP employees was de minimis in 2017 . We acquired DeWAL in November 2016. Eligible DeWAL employees are covered under the DeWAL Industries, Inc. 401k Profit Sharing Plan (DeWAL Plan). The DeWAL Plan matching contribution is 100% of the first 3% of employee pre-tax contributions. Compensation expense related to the DeWAL Plan was de minimis in 2017 and for the period in 2016 subsequent to the acquisition. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On June 18, 2015, we entered into a secured five year credit agreement with JPMorgan Chase Bank, N.A, as administrative agent, and the lenders party thereto (the “Second Amended Credit Agreement”). The Second Amended Credit Agreement provided (1) a $55.0 million term loan; (2) up to $295.0 million of revolving loans, with sublimits for multicurrency borrowings, letters of credit and swing-line notes; and (3) a $50.0 million expansion feature. On February 17, 2017 , we entered into a secured five year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the “Third Amended Credit Agreement”), which amended and restated the Second Amended Credit Agreement. The Third Amended Credit Agreement refinanced the Second Amended Credit Agreement, eliminated the term loan under the Second Amended Credit Agreement, increased the principal amount of the revolving credit facility to up to $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, and provided an additional $175.0 million accordion feature. 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 Third Amended Credit Agreement). Borrowings under the Third Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest that includes a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate is the greater of the prime rate; federal funds effective rate (or the overnight bank funding rate, if greater) plus 50 basis points; or adjusted 1-month LIBOR plus 100 basis points. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 137.5 to 175.0 basis points, depending on our leverage ratio. We incurred interest expense on our outstanding debt of $5.2 million , $3.1 million , and $3.5 million for the years ended 2017 , 2016 and 2015 , respectively. In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Third Amended Credit Agreement, we were required to pay a quarterly fee of 20 to 30 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Third Amended Credit Agreement. We incurred an unused commitment fee of $0.6 million , $0.4 million and $0.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Third Amended Credit Agreement contains customary representations, warranties, covenants, mandatory prepayments and events of default under which our payment obligations may be accelerated. 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. The financial covenants include requirements to maintain (1) a leverage ratio of no more than 3.25 to 1.00, subject to an election to increase the maximum leverage ratio to 3.50 to 1.00 for one fiscal year in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00. All obligations under the Third Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Third Amended Credit Agreement (the Guarantors). The obligations are also secured by a Third Amended and Restated Pledge and Security Agreement, dated as of February 17, 2017, entered into by us and the Guarantors which grants to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of the non-real estate assets of the Guarantors. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries. All revolving loans under the Third Amended Credit Agreement are due on the maturity date, February 17, 2022. We are not required to make any quarterly principal payments under the Third Amended Credit Agreement, however, during 2017, we made discretionary principal payments of $110.2 million in aggregate to reduce the amount outstanding on our credit facility. As of December 31, 2017 we have $131.0 million in outstanding borrowings under the Third Amended Credit Agreement. At December 31, 2017 , we have $2.3 million of outstanding line of credit issuance costs that will be amortized over the life of the Third Amended Credit Agreement, which will terminate in February 2022. We incurred amortization expense of $0.5 million in the years ended December 31, 2017 , 2016 and 2015 related to these deferred costs. In March 2017, we entered into an interest rate swap to hedge the variable interest rate on $75.0 million of our $450.0 million revolving credit facility. See further discussion in Note 3, “Hedging Transactions and Derivative Financial Instruments.” Restriction on Payment of Dividends Our Third Amended Credit Agreement generally permits us to pay cash dividends to our shareholders, provided that (i) no default or event of default has occurred and is continuing or would result from the dividend payment and (ii) our leverage ratio does not exceed 2.75 to 1.00 . If our leverage ratio exceeds 2.75 to 1.00 , we may nonetheless make up to $20.0 million in restricted payments, including cash dividends, during the fiscal year, provided that no default or event of default has occurred and is continuing or would result from the payments. As of December 31, 2017 , our leverage ratio did not exceed 2.75 to 1.00 . Capital Lease We have a capital lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the leasing agreement, we have an option to purchase the property 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 residual book value of the land including the buildings and installations thereon. The total obligation recorded for this lease as of December 31, 2017 and 2016 was $5.7 million and $5.3 million , respectively. Depreciation expense related to this capital lease was $0.3 million for each of the years ending December 31, 2017 , 2016 and 2015 . These expenses are included as depreciation expense in cost of sales on our consolidated statements of operations. Accumulated depreciation as of December 31, 2017 and 2016 was $3.3 million and $3.4 million , respectively. We also incurred interest expense on this capital lease of $0.1 million , $0.3 million and $0.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Interest expense related to the debt recorded on the capital lease is included in interest expense, net on the consolidated statements of operations. In 2017, we entered into two additional capital lease agreements for office related equipment in various worldwide locations. The total obligation recorded for the capital leases as of December 31, 2017 was $0.8 million . Depreciation expense related to the capital leases was $0.1 million for the year ended December 31, 2017 . These expenses are included as depreciation expense in selling, general and administrative expenses on our consolidated statements of operations. Accumulated depreciation as of December 31, 2017 was $0.1 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Consolidated income before income taxes consisted of: (Dollars in thousands) 2017 2016 2015 Domestic $ 39,751 $ 10,888 $ 14,832 International 93,174 71,392 51,341 Total $ 132,925 $ 82,280 $ 66,173 The income tax expense in the consolidated statements of operations consisted of: (Dollars in thousands) Current Deferred Total 2017 Domestic $ 7,535 $ 21,936 $ 29,471 International 27,418 (4,423 ) 22,995 Total $ 34,953 $ 17,513 $ 52,466 2016 Domestic $ 2,078 $ 3,376 $ 5,454 International 24,537 4,006 28,543 Total $ 26,615 $ 7,382 $ 33,997 2015 Domestic $ 993 $ 4,272 $ 5,265 International 15,192 (604 ) 14,588 Total $ 16,185 $ 3,668 $ 19,853 Deferred tax assets and liabilities as of December 31, 2017 and 2016 , were comprised of the following: (Dollars in thousands) 2017 2016 Deferred tax assets Accrued employee benefits and compensation 8,410 9,899 Postretirement benefit obligations — 3,335 Tax loss and credit carryforwards 7,905 7,146 Reserves and accruals 4,699 6,361 Other 2,977 2,792 Total deferred tax assets 23,991 29,533 Less deferred tax asset valuation allowance (8,754 ) (6,388 ) Total deferred tax assets, net of valuation allowance 15,237 23,145 Deferred tax liabilities Depreciation and amortization 14,300 14,965 Postretirement benefit obligations 2,311 — Unremitted earnings 3,100 7,239 Other 224 190 Total deferred tax liabilities 19,935 22,394 Net deferred tax asset $ (4,698 ) $ 751 At December 31, 2017 , the Company had state net operating loss carryforwards ranging from $0.4 million to $6.6 million in various state taxing jurisdictions, which expire between 2021 and 2037. We also had approximately $8.6 million of credit carryforwards in Arizona, which will expire between 2018 and 2032. We believe that it is more likely than not that the benefit from the state net operating loss carryforwards and state credits will not be realized. In recognition of this risk, we have provided a valuation allowance of $7.6 million relating to these carryforwards. We currently have approximately $2.3 million of research and development credits that begin to expire in 2026 , and $0.5 million of minimum tax credits that can be carried forward indefinitely. We adopted ASU 2016-09 on January 1, 2017. Upon adoption, we recognized excess tax benefits of approximately $12.7 million in deferred tax assets associated with research and development and foreign tax credit carryforwards that were previously not recognized in a cumulative-effect adjustment to retained earnings. In addition, the new guidance requires that all of the tax effects related to share-based payments at settlement or expiration be recorded through the statement of operations which resulted in a $3.9 million income tax benefit in 2017. We had a valuation allowance of $8.8 million at December 31, 2017 and $6.4 million at December 31, 2016 , against certain of our deferred tax assets, primarily carryforwards expected to expire unused and deferred tax assets that are capital in nature. No valuation allowance has been provided on our other deferred tax assets, as we believe it is more likely than not that all such assets will be realized in the applicable jurisdictions. We reached this conclusion after considering the availability of taxable income in prior carryback years, tax planning strategies, and the likelihood of future taxable income exclusive of reversing temporary differences and carryforwards in the respective jurisdictions or entities. Differences between forecasted and actual future operating results or changes in carryforward periods could adversely impact the amount of deferred tax asset considered realizable. In appropriate circumstances we have the opportunity to undertake a tax planning strategy to ensure that our tax credit carryforwards do not expire unutilized. This strategy is based upon our ability to make a federal tax election to capitalize certain expenses that will result in generating taxable income to allow us to utilize our tax credit carryforwards before they expire. We would undertake such a strategy to realize these tax credit carryforwards prior to expiration as it is reasonable, prudent, and feasible. Income tax expense differs from the amount computed by applying the United States federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows: (Dollars in thousands) 2017 2016 2015 Tax expense at Federal statutory income tax rate $ 46,529 $ 28,798 $ 23,161 International tax rate differential (9,603 ) (2,260 ) (4,792 ) Foreign source income, net of tax credits (excluding U.S. Tax Reform) 1,087 1,215 2,449 State tax, net of federal 279 (200 ) (416 ) Unrecognized tax benefits 2,874 (5,555 ) 148 U.S. Tax Reform 13,683 — — Equity compensation excess tax deductions (3,867 ) — — General business credits (1,080 ) (1,125 ) (908 ) Acquisition related expenses — — 453 Distribution related foreign taxes 2,173 12,433 — Valuation allowance change (excluding U.S. Tax Reform) 1,393 171 (1,489 ) Other (1,002 ) 520 1,247 Income tax expense (benefit) $ 52,466 $ 33,997 $ 19,853 Withholding taxes related to distributions from China of $6.3 million , previously reported in the table above as Foreign source income, net of tax credits, have been reclassified in 2016 to distribution related foreign taxes to conform to the current year presentation. Our effective tax rate for 2017 was 39.5% , including the impact of U.S. Tax Reform, compared to 41.3% in 2016 . The 2017 rate decrease was primarily due to lower foreign tax impact on remitted and unremitted foreign earnings and profits, equity compensation excess tax deductions recognized in 2017 and increased international tax rate benefits due to earnings mix. This was substantially offset by the impact of U.S. Tax Reform provisional estimates, a decrease in reversal of reserves associated with uncertain tax positions and a change in valuation allowance associated with deferred tax assets that are capital in nature. Excluding the impact of U.S. Tax Reform, our effective tax rate for 2017 was 29.2% . Historically our intention was to permanently reinvest the majority of our foreign earnings indefinitely or to distribute them only when it is tax efficient to do so. As a result of certain internal restructuring transactions effectuated to more closely align our subsidiaries from an operational, legal and geographic perspective and improve management of financial resources, with respect to offshore distributions, we modified our assertion of certain accumulated foreign subsidiary earnings considered permanently reinvested during 2016. This change resulted in accrual of a deferred tax liability of $6.1 million associated with distribution related foreign taxes on undistributed earnings of our Chinese subsidiaries that are no longer considered permanently reinvested. In the event that we distributed these funds to other offshore subsidiaries, these taxes would become due. In addition, we incurred $6.3 million of withholding taxes related to distributions from China. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law in the United States, making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017 . We have calculated our best estimate of the impact of U.S. Tax Reform in our year-end income tax provision in accordance with our current understanding of U.S. Tax Reform and guidance available as of the date of this filing. As a result, we have recorded $13.7 million as an additional income tax expense in the fourth quarter of 2017 , the period in which the legislation was enacted. The provisional amount related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was $1.7 million . The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was $12.0 million based on cumulative foreign earnings of $314.8 million . We had sufficient tax credit carryforwards to cover the impact of the transition tax, and as a result do not have any long term liability on our balance sheet at December 31, 2017 associated with the transition tax. On December 22, 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of U.S. Tax Reform. In accordance with SAB 118, we have determined that the $1.7 million of the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and liabilities and the $12.0 million of tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, both referred to above, were provisional amounts and reasonable estimates at December 31, 2017 . Management will subject these estimates to further analysis related to certain matters, such as federal and state interpretations of U.S. Tax Reform, U.S. Treasury regulations, administrative interpretations or court decisions, a more detailed analysis of post-1986 undistributed foreign subsidiary E&P that may require further adjustments and changes to certain estimates as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to tax expense in the quarter of 2018 when the analysis is complete. As a result of U.S. Tax Reform, all post-1986 unremitted foreign E&P as of December 31, 2017 have been subjected to U.S. tax through the transition tax. Our foreign unremitted earnings could be subject to additional taxes if they are redeployed outside of their country of origin. With the exception of certain of our Chinese subsidiaries, we have historically and continue to assert that foreign earnings are indefinitely reinvested. While we have not currently changed our assertion with respect to foreign earnings, compared to prior years, we are currently evaluating the impact of U.S. Tax Reform on our global structure and any associated impacts it may have on our assertion on a go forward basis and as such have not included a provisional estimate of the impact. Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2017 and December 31, 2016 , were as follows: (Dollars in thousands) 2017 2016 Beginning balance $ 5,883 $ 10,571 Gross increases - current period tax positions 7,056 520 Gross increases - tax positions in prior periods 3,243 — Gross decreases - tax positions in prior periods (375 ) (498 ) Foreign currency exchange 467 (137 ) Lapse of statute of limitations (1,709 ) (4,573 ) Ending balance $ 14,565 $ 5,883 Included in the balance of unrecognized tax benefits as of December 31, 2017 were $10.6 million of tax benefits that, if recognized, would impact the effective tax rate. Also included in the balance of unrecognized tax benefit as of December 31, 2017 were $4.0 million of tax benefits that, if recognized, would result in adjustments to other tax accounts; primarily deferred taxes. We recognize interest accrued related to unrecognized tax benefit as income tax expense. Related to the unrecognized tax benefits noted above, at December 31, 2017 and 2016 , we had accrued potential interest and penalties of approximately $0.6 million and $0.4 million , respectively. We have recorded a net tax expense of $0.2 million during 2017 , net income tax benefit of $0.9 million during 2016 and $0.1 million tax expense during 2015 . It is possible that up to $8.1 million of our currently unrecognized tax benefits could be recognized within 12 months as a result of projected resolutions of worldwide tax disputes or the expiration of the statute of limitations. We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2013 through 2017 are subject to examination by the tax authorities. With few exceptions, we are no longer subject to U.S. federal, state, local and foreign examinations by tax authorities for the years before 2013 . |
Shareholders' Equity and Equity
Shareholders' Equity and Equity Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Shareholders' Equity and Equity Compensation | SHAREHOLDERS’ EQUITY AND EQUITY COMPENSATION Capital Stock and Equity Compensation Awards Under the Rogers Corporation 2009 Long-Term Equity Compensation Plan, we may grant stock options to officers, directors, and other key employees at exercise prices that are at least equal to the fair market value of our stock on the date of grant. Under our older plans, stock options to officers, directors, and other key employees could be granted at exercise prices that were as low as 50% of the fair market value of our stock as of the date of grant. However, in terms of these older plans, virtually all such options were granted at exercise prices equal to the fair market value of our stock as of the date of grant. Stock options granted to employees in the United States generally become exercisable over a four -year period from the grant date and expire ten years after such grant. We award each non-management director deferred stock units, which permit non-management directors to receive, at a later date, one share of Rogers stock for each deferred stock unit with no payment of any consideration by the director at the time the shares are received. For director stock options, the exercise price was equal to the fair market value of our stock as of the grant date, were immediately exercisable, and expire ten years after the date of grant. Our 2005 Equity Compensation Plan and our 2009 Long-Term Equity Compensation Plan also permit the granting of restricted stock units and certain other forms of equity awards to officers and other key employees, although no new equity awards have been made pursuant to the 2005 plan since shareholder approval of our 2009 Long-Term Equity Compensation Plan. Shares of capital stock reserved for possible future issuance were as follows: As of December 31, 2017 2016 Shares reserved for issuance under the stock acquisition program (1) 120,883 120,883 Shares reserved for issuance under outstanding stock options and restricted stock unit awards 545,018 659,302 Additional shares reserved for issuance under Rogers Corporation 2009 Long-Term Equity Compensation Plan 793,603 892,163 Shares reserved for issuance under the Rogers Employee Savings and Investment Plan (2) 169,044 169,044 Shares reserved for issuance under the Rogers Corporation Global Stock Ownership Plan for Employees 117,987 133,113 Deferred compensation to be paid in stock, including deferred stock units 17,100 22,752 Total 1,763,635 1,997,257 (1) As of December 31, 2017 , the Company no longer offers capital stock under the stock acquisition program. (2) As of December 31, 2017 , the Company no longer offers its capital stock as an investment option under the Rogers Employee Savings and Investment Plan. 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 have not granted any stock options since the first quarter of 2012. In most cases, we recognize expense using the straight-line attribution method for stock option grants. The amount of equity compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. We previously estimated the forfeiture rate based on historical experience and our expectations regarding future terminations. To the extent our actual forfeiture rate was different from our estimate, equity compensation expense was adjusted accordingly. In accordance with our adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, on January 1, 2017, we now account for forfeitures as they occur. The adoption of this standard, with respect to treatment of forfeitures, did not have a material impact on our condensed consolidated financial statements in the period of adoption. Our employee stock option agreements contain a retirement provision, which results in the vesting of any unvested options immediately upon retirement. This provision affects the timing of option expense recognition for options meeting the criteria for retirement. We recognize compensation expense over the period from the date of grant to the date retirement eligibility is met, if it is shorter than the required service period, or upon grant if the employee is eligible for retirement on that date. As of December 31, 2017 , there was no unrecognized compensation cost related to unvested stock option awards. The first quarter of 2016 was the final quarter in which we recognized stock based compensation expense related to previously issued stock option grants, and the amount of such expense recorded in 2016 was de minimis. We recognized $0.2 million of compensation expense related to stock options for the year ended December 31, 2015 . A summary of the activity under our stock option plans as of December 31, 2017 and changes during the year 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 December 31, 2016 116,575 $ 37.76 3.2 4,552,580 Options exercised (83,292 ) 37.04 Options forfeited — — Options outstanding at December 31, 2017 33,283 36.40 2.2 4,177,655 Options exercisable at December 31, 2017 33,283 36.40 2.2 4,177,655 Options vested at December 31, 2017 33,283 36.40 2.2 4,177,655 During the years ended December 31, 2017 and 2016 , 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 $6.0 million and $2.1 million , respectively. The total amount of cash received from the exercise of these options was $3.1 million and $4.1 million , during the years ended December 31, 2017 and 2016, respectively. The total grant-date fair value of stock options that vested during 2016 was de minimis and in 2015 was $0.2 million . A summary of the activity under our stock option plans for the fiscal years ended 2017 , 2016 and 2015 , is presented below: 2017 2016 2015 Options Weighted- Options Weighted- Options Weighted- Outstanding at beginning of year 116,575 $ 37.76 212,038 $ 40.47 393,347 $ 40.72 Options exercised (83,292 ) 37.04 (95,113 ) 43.56 (178,759 ) 40.90 Options forfeited — — (350 ) 44.32 (2,550 ) 40.09 Outstanding at year-end 33,283 36.40 116,575 37.76 212,038 40.47 Options exercisable at year-end 33,283 116,575 204,394 Performance-Based Restricted Stock Units We currently have performance-based restricted stock unit awards from 2015, 2016 and 2017 outstanding. These awards generally cliff vest at the end of a three year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed 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 performance measures. Compensation expense is recognized using the straight line method over the vesting period, unless the employee has an accelerated vesting schedule. The 2015 awards have two measurement criteria on which the final payout of each 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 capital stock as compared to that of a specified group of peer companies. The 2016 and 2017 awards have one measurement criteria, the three year total shareholder return (TSR) on the performance of our capital 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 the ROIC portion 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 were the assumptions used in the Monte Carlo calculation: 2017 2016 Expected volatility 33.6 % 29.6 % Expected term (in years) 3 3 Risk-free interest rate 1.38 % 0.93 % 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 capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model. Forfeiture Rate – We previously estimated the forfeiture rate based on historical experience and our expectations regarding future terminations. To the extent our actual forfeiture rate was different from our estimate, equity compensation expense was adjusted accordingly. In accordance with our adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, on January 1, 2017, we now account for forfeitures as they occur. The adoption of this standard, with respect to treatment of forfeitures, did not have a material impact on our condensed consolidated financial statements in the period of adoption. A summary of activity under the performance-based restricted stock units plans for the fiscal years ended 2017 , 2016 and 2015 is presented below: 2017 2016 2015 Awards Outstanding Weighted- Awards Outstanding Weighted- Awards Outstanding Weighted- Non-vested awards outstanding at beginning of year 151,769 $ 89.72 107,229 $ 66.13 92,437 $ 52.75 Awards granted 56,147 110.77 84,443 69.01 51,475 78.01 Stock issued (34,442 ) 86.59 (25,397 ) 72.68 (20,910 ) 41.27 Awards forfeited or expired (4,272 ) 99.35 (14,506 ) 104.83 (15,773 ) 59.45 Non-vested awards outstanding at end of year 169,202 $ 97.16 151,769 $ 89.72 107,229 $ 66.13 We recognized $4.7 million , $4.6 million and $3.2 million of compensation expense related to performance-based restricted stock units for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , there was $5.9 million of total unrecognized compensation cost related to unvested performance-based restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.4 years . Time-Based Restricted Stock Units We currently have time-based restricted stock unit grants from 2015, 2016 and 2017 outstanding. These grants all 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. 2017 2016 2015 Awards Outstanding Weighted- Awards Outstanding Weighted- Awards Outstanding Weighted- Non-vested awards outstanding at beginning of year 239,189 $ 57.71 208,318 $ 64.27 238,386 $ 53.80 Awards granted 80,535 83.17 118,660 51.70 75,160 77.15 Stock issued (140,208 ) 58.18 (60,326 ) 64.03 (93,813 ) 48.35 Awards forfeited or expired (6,185 ) 60.70 (27,463 ) 64.60 (11,415 ) 61.32 Non-vested awards outstanding at end of year 173,331 $ 69.10 239,189 $ 57.71 208,318 $ 64.27 We recognized $5.7 million , $5.6 million and $5.0 million of compensation expense related to time-based restricted stock units for years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , there was $7.3 million of total unrecognized compensation cost related to unvested time-based restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.5 years . 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 13 th month anniversary of the grant date unless the individual elects to defer the receipt of these 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. 2017 2016 2015 Awards Outstanding Weighted- Average Grant Date Fair Value Awards Outstanding Weighted- Awards Outstanding Weighted- Awards outstanding at beginning of year 11,900 $ 58.82 23,950 $ 27.22 30,150 $ 24.43 Awards granted 9,250 109.48 11,900 58.82 10,300 73.79 Stock issued (11,900 ) 109.36 (23,950 ) 52.69 (16,500 ) 51.20 Awards outstanding at end of year 9,250 $ 109.48 11,900 $ 58.82 23,950 $ 27.22 We recognized compensation expense related to deferred stock units of $1.0 million , $0.7 million and $0.8 million , for the years ended December 31, 2017 , 2016 and 2015 , respectively. Employee Stock Purchase Plan We have an employee stock purchase plan (ESPP) that allows eligible employees to purchase, through payroll deductions, shares of our capital stock at a discount to fair market value. The ESPP has two 6 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 $0.5 million of compensation expense associated with the plan for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases Our principal noncancellable operating lease obligations are for building space and vehicles. The leases generally provide that we pay maintenance costs. The lease periods typically range from one to five years and include purchase or renewal provisions. We have leases that are cancellable with minimal notice. Additionally, we have capital leases for our manufacturing facility in Eschenbach, Germany as well as office related equipment in various worldwide locations. The following table includes future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of December 31, 2017 : (Dollars in thousands) Year Ending December 31, 2018 $ 756 2019 756 2020 737 2021 4,669 2022 76 Thereafter — Total 6,994 Less: Interest (542 ) Present Value of Net Future Minimum Lease Payments $ 6,452 The following table includes future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2017 : (Dollars in thousands) Year Ending December 31, 2018 $ 3,833 2019 3,152 2020 2,461 2021 2,022 2022 1,527 Thereafter 474 Total $ 13,469 The following table includes lease expense for the three years ended December 31, 2017 : For the Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Operating leases $ 3,819 $ 3,567 $ 3,531 Capital lease $ 608 $ 564 $ 667 Environmental & Legal We are currently engaged in the following environmental and legal proceedings: Voluntary Corrective Action Program The Rogers corporate headquarters located in Rogers, Connecticut is part of the Connecticut Voluntary Corrective Action Program (VCAP). As part of this program, we partnered with the Connecticut Department of Energy and Environmental Protection (CT DEEP) to determine the corrective actions to be taken at the site related to contamination issues. We evaluated this matter and completed internal due diligence work related to the site in the fourth quarter of 2015. We recorded an accrual of $3.2 million as of December 31, 2015 for remediation costs expected to be incurred based on the facts and circumstances known to us at that time. During the third quarter of 2016, the CT DEEP approved a change to our remediation plan for the site that will reduce our overall expected costs. Accordingly, we reduced the accrual by $0.9 million as a result of change in the level of remediation that needs to take place as an offset to selling, general, and administrative expenses in the consolidated financial statements. Remediation activities on the site continued during 2017 and as of December 31, 2017 , the remaining accrual for future remediation efforts was $1.7 million . Superfund Sites We are currently involved as a potentially responsible party (PRP) in one active case involving a waste disposal site, the 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 . We believe we are a de minimis participant and, as such, have been allocated an insignificant percentage of the total PRP cost sharing responsibility. We believe that 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 December 31, 2017 , which approximates our share of the low end of the estimated range. 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 United States Environmental Protection Agency, 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, and this initial issue was remediated in 2000. Further contamination was later found in the groundwater beneath the property, which was addressed with the installation of a pump and treat system in 2011. Additional PCB contamination at this facility was found in the facility’s original buildings, courtyards and surrounding areas including an on-site pond. Remediation costs related to this contamination were expected to approximate $0.7 million . Remediation activities of the affected buildings and courtyards were completed in 2014 at a total cost of $0.5 million . Currently, we have an accrual of $0.2 million for the pond remediation recorded on our consolidated statements of financial position. We believe this accrual will be adequate to cover the remaining remediation work related to the soil and pond contamination based on the information known at this time. However, if additional contamination is found, the cost of the remaining remediation may increase. Overall, we have spent approximately $2.3 million in remediation and monitoring costs related to these PCB contamination issues. The future costs related to the maintenance of the groundwater pump and treat system now in place at the site are expected to be minimal. We believe that the remaining remediation activity will continue for several more years and no time frame for completion can be estimated at the present time. Asbestos We, like many other industrial companies, have been named as a defendant in a number of lawsuits filed in courts across the country by persons alleging personal injury from exposure to products containing asbestos. We have never mined, milled, manufactured or marketed asbestos; rather, we made and provided to industrial users a limited number of products that contained encapsulated asbestos, but we stopped manufacturing these products in the late 1980s. Most of the claims filed against us involve numerous defendants, sometimes as many as several hundred. The following table presents information about our recent asbestos claims activity: For the Year Ended December 31, 2017 2016 Claims outstanding at beginning of year 605 489 New claims filed 362 288 Pending claims concluded* (280 ) (172 ) Claims outstanding at end of year 687 605 * For the year ended December 31, 2017 , 258 claims were dismissed and 22 claims were settled. For the year ended December 31, 2016 , 155 claims were dismissed and 17 claims were settled. Settlements totaled approximately $5.0 million for the year ended December 31, 2017 , compared to $4.4 million for the year ended December 31, 2016 . We recognize a liability for asbestos-related contingencies that are probable of occurrence and reasonably estimable. In connection with the recognition of liabilities for asbestos related matters, we record asbestos-related insurance receivables that are deemed probable. Our estimates of asbestos-related contingent liabilities and related insurance receivables are based on an independent actuarial analysis and an independent insurance usage analysis prepared annually by third parties. The actuarial analysis contains numerous assumptions, including general assumptions regarding the asbestos-related product liability litigation environment and company-specific assumptions regarding claims rates (including diseases alleged), dismissal rates, average settlement costs and average defense costs. The insurance usage analysis considers, among other things, applicable deductibles, retentions and policy limits, the solvency and historical payment experience of various insurance carriers, the likelihood of recovery as estimated by external legal counsel and existing insurance settlements. 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. Prior to 2017, due to the inherent uncertainties of the projection process and our limited amount of settlement and claims history, we utilized a ten-year projection period, which we concluded was appropriate as we did not believe we had sufficient data to justify a longer projection period. During 2017, we reviewed the projections of our current and future asbestos claims, and determined it was appropriate to extend the liability projection period to cover all current and future claims through 2058. We based our conclusion on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expectation of a downward trend in claims due to the average age of our claimants which is approaching the average life expectancy. As a result, we believe we are now able to make a reasonable estimate of the actuarially determined liability for current and future asbestos claims through 2058. For the years ended December 31, 2017 and 2016 , our forecasted asbestos-related claims and insurance receivables for the 40 year projection period and 10 year projection period, respectively, were as follows: (Dollars in millions) 2017 2016 Asbestos-related claims $ 76.2 $ 52.0 Asbestos-related insurance receivables $ 69.2 $ 48.4 To date, the defense and settlement costs of our asbestos-related product liability litigation have been substantially covered by insurance. We have identified continuous coverage for primary, excess and umbrella insurance from the 1950s through the mid-1980s, except for a period in the early 1960s, with respect to which we have entered into an agreement for primary, but not excess or umbrella, coverage. In addition, we have entered into a cost sharing agreement with most of our primary, excess and umbrella insurance carriers to facilitate the ongoing administration and payment of claims by the carriers. The cost sharing agreement may be terminated by any party, but will continue until a party elects to terminate it. As of the filing date for this report, the agreement has not been terminated. We expect to exhaust individual primary, excess and umbrella coverages over time, and there is no assurance that such exhaustion will not accelerate due to additional claims, damages and settlements or that coverage will be available as expected. We believe that it is reasonably possible that we may incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves and insurance recovery. Impact on Financial Statements Projections on the potential exposure and expected insurance coverage are based numerous assumptions. 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. Prior to 2017, due to the inherent uncertainties of the projection process and our limited amount of settlement and claims history, we utilized a ten-year projection period, which we concluded was appropriate as we did not believe we had sufficient data to justify a longer projection period. During 2017, we reviewed the projections of our current and future asbestos claims, and determined it was appropriate to extend the liability projection period to cover all current and future claims through 2058. We based our conclusion on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expectation of a downward trend in claims due to the average age of our claimants, which is approaching life expectancy. The year 2058 also represents the expected end of Rogers’ asbestos liability exposure and no further ongoing claims are expected past that date. As a result, we believe we are now able to make a reasonable estimate of the actuarially determined liability for current and future asbestos claims through 2058. As of December 31, 2017 , the estimated liability and estimated insurance recovery for all current and future claims projected through 2058 was $76.2 million and $69.2 million , respectively. Each year we evaluate the changes in the estimated liability and estimated insurance recovery based on the projections of asbestos litigation and corresponding insurance coverage for that litigation and record the resulting expense or income. For the years ended December 31, 2017 and 2016 , we recognized expense of $3.4 million and $0.3 million , respectively, and for the year ended December 31, 2015 we recorded income of $0.3 million . The increase in expense recognized in 2017 compared to the prior year is primarily related to the new forecast period of 40 years, which is substantially covered by insurance. 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 may incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves and insurance recovery. We will continue to vigorously defend ourselves and believe we have substantial unutilized insurance coverage to mitigate future costs related to this matter. General 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. 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. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | SEGMENTS AND GEOGRAPHIC INFORMATION Our reporting structure is comprised of the following operating segments: ACS, EMS and PES. Our non-core businesses are reported in the Other operating segment. • Advanced Connectivity Solutions The ACS operating segment includes circuit materials and solutions enabling high-performance and high-reliability connectivity for applications in wireless communications infrastructure (e.g., power amplifiers, antennas, small cells and distributed antenna systems), automotive (e.g., active safety, advanced driver assistance systems, telematics and thermal management), connected devices, (e.g., mobile internet devices and Internet of Things), wired infrastructure (e.g., computing, servers and storage), consumer electronics and aerospace/defense. These products have characteristics that offer performance and other functional advantages in many market applications and serve to differentiate our products from other commonly available materials. These products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits. The polymer-based dielectric layers of our circuit board laminates are proprietary materials that provide highly specialized electrical and mechanical properties. We sell our circuit materials under various trade names, including RO3000 ® , RO4000 ® , RT/duroid ® , AD Series TM and CLTE Series TM . All of these laminates are used for making circuitry that receive, transmit, and process high frequency communications signals, yet each laminate has varying properties that address specific needs and applications within the communications market. • Elastomeric Material Solutions The EMS operating segment includes elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications including general industrial, portable electronics (e.g., mobile internet devices), consumer goods (e.g., protective sports equipment), automotive, mass transportation, construction and printing applications. These materials have characteristics that offer functional advantages in many market applications which serve to differentiate Rogers’ products from other commonly available materials. EMS products are sold globally to converters, fabricators, distributors and original equipment manufacturers (OEMs) for use in general industrial applications, portable electronics including mobile internet devices, consumer goods, mass transportation, construction, printing applications and other markets. Trade names for our EMS products include: DeWAL™, ARLON ® , PORON ® , XRD ® , BISCO ® , HeatSORB™, eSORBA ® and Diversified Silicone Products. In November 2016, we acquired DeWAL Industries, a leading manufacturer of polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes and specialty products, and in January 2017, we acquired the principal operating assets of Diversified Silicone Products, Inc. (DSP), a custom silicone product development and manufacturing business. The acquisitions of DeWAL and DSP, and their subsequent integration into our EMS operating segment, has enabled us to extend the product portfolio and technology capabilities with complementary high-end, high performance elastomeric materials. We have two 50% owned joint ventures that extend and complement our worldwide business in the EMS operating segment. Rogers INOAC Corporation (RIC), a joint venture with Japan-based INOAC Corporation, manufactures high performance polyurethane foam materials in Mie and Taketoyo, Japan to predominantly serve the Japanese and Taiwanese markets. Rogers INOAC Suzhou Corporation (RIS) is a joint venture in China that was established with INOAC Corporation and provides polyurethane foam materials primarily to the Asian marketplace. • Power Electronics Solutions The PES operating segment is comprised of direct bond copper (DBC) ceramic substrate products and busbar power distribution products. We believe that our advanced, customized components enable the performance and reliability of today’s growing array of power electronic devices and serve to increase the efficiency of applications by managing heat and ensuring the reliability of these critical devices used in converting raw energy into controlled and regulated power that can be used and managed. Trade names for our PES products include curamik ® ceramic substrates and ROLINX ® products. Our curamik ® ceramic substrates are used in the design of intelligent power management devices, such as insulated gate bipolar transistor (IGBT) modules, which enable a wide range of products including highly efficient industrial motor drives, wind and solar converters and electric and hybrid electric vehicle drive systems. ROLINX ® products are used in high power electrical inverter and converter systems for use in mass transit (e.g. high speed trains); clean technology applications (e.g. wind turbines, solar farms and electric vehicles) and variable frequency drives for high to mid power applications. • Other The remainder of operations are accumulated and reported as our Other operating segment, which consists of elastomer components, floats and inverter distribution activities. Elastomer components are sold to OEMs for applications in ground transportation, office equipment, consumer and other markets. Trade names for our elastomer components include: NITROPHYL ® floats for level sensing in fuel tanks, motors, and storage tanks and ENDUR ® elastomer rollers and belts for document handling in copiers, printers, mail sorting machines and automated teller machines. Inverters are sold primarily to OEMs and fabricators that in turn sell to various other third parties primarily serving the portable communication and automotive markets. The Arlon polyimide and thermoset laminate business was also included within our Other operating segment prior to its divestiture in December 2015. The following table sets forth the information about our operating segments for the periods indicated: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total 2017 Net sales $ 301,092 $ 312,661 $ 184,954 $ 22,336 $ 821,043 Operating income $ 56,186 $ 51,404 $ 16,036 $ 7,153 $ 130,779 Total assets $ 353,786 $ 489,456 $ 261,034 $ 20,858 $ 1,125,134 Capital expenditures $ 9,900 $ 7,563 $ 9,238 $ 514 $ 27,215 Depreciation & amortization $ 16,351 $ 16,270 $ 10,572 $ 906 $ 44,099 Investment in unconsolidated joint ventures $ — $ 18,324 $ — $ — $ 18,324 Equity income in unconsolidated joint ventures $ — $ 4,898 $ — $ — $ 4,898 2016 Net sales $ 277,787 $ 203,181 $ 152,367 $ 22,979 $ 656,314 Operating income $ 43,965 $ 26,593 $ 5,965 $ 7,329 $ 83,852 Total assets $ 361,746 $ 421,011 $ 247,187 $ 26,556 $ 1,056,500 Capital expenditures $ 7,569 $ 4,051 $ 6,009 $ 507 $ 18,136 Depreciation & amortization $ 15,654 $ 10,141 $ 11,208 $ 844 $ 37,847 Investment in unconsolidated joint ventures $ — $ 16,183 $ — $ — $ 16,183 Equity income in unconsolidated joint ventures $ — $ 4,146 $ — $ — $ 4,146 2015 Net sales $ 267,630 $ 180,898 $ 150,288 $ 42,627 $ 641,443 Operating income $ 45,115 $ 19,979 $ 3,750 $ 7,411 $ 76,255 Total assets $ 315,358 $ 264,982 $ 320,755 $ 29,260 $ 930,355 Capital expenditures $ 15,532 $ 4,103 $ 4,185 $ 1,017 $ 24,837 Depreciation & amortization $ 15,403 $ 9,280 $ 7,855 $ 1,516 $ 34,054 Investment in unconsolidated joint ventures $ — $ 15,348 $ — $ — $ 15,348 Equity income in unconsolidated joint ventures $ — $ 2,890 $ — $ — $ 2,890 The following table sets forth the operating income reconciliation to the consolidated statements of operations for the periods indicated: (Dollars in thousands) 2017 2016 2015 Operating income $ 130,779 $ 83,852 $ 76,255 Equity income in unconsolidated joint ventures 4,898 4,146 2,890 Other income (expense), net 3,379 (1,788 ) (8,492 ) Interest expense, net (6,131 ) (3,930 ) (4,480 ) Income before income taxes $ 132,925 $ 82,280 $ 66,173 Information relating to our operations by geographic area was as follows: Net Sales (1) Long-lived Assets (2) (Dollars in thousands) 2017 2016 2015 2017 2016 2015 United States $ 225,621 $ 158,136 $ 164,478 $ 370,964 $ 326,199 $ 218,439 China 272,184 236,961 227,993 57,404 62,728 65,994 Germany 89,203 79,480 76,569 114,497 101,725 110,240 Other 234,035 181,737 172,403 34,131 32,242 34,460 Total $ 821,043 $ 656,314 $ 641,443 $ 576,996 $ 522,894 $ 429,133 (1) Net sales are allocated to countries based on the location of the customer. Countries with 10% or more of net sales have been disclosed. (2) Long-lived assets are based on the location of the asset and are comprised of goodwill and other intangible assets and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | RESTRUCTURING AND IMPAIRMENT CHARGES • 2017 In 2017, we completed the physical relocation of our global headquarters from Rogers, Connecticut to Chandler, Arizona. We recorded $2.8 million of expense related to this project in 2017 including severance expense and other costs associated with relocating employees to the new location. Severance activity related to the headquarters relocation is presented in the table below for the year ended December 31, 2017. In the third quarter of 2017, we recognized a $0.3 million charge related to the impairment of our remaining investment in BrightVolt, Inc. (formerly known as Solicore, Inc.). As this investment does not relate to a specific operating segment, we allocated it ratably among the three operating segments. In the fourth quarter of 2017, we recognized a $0.5 million impairment charge related to the remaining net book value of an other intangible asset within our ROLINX ® product line in our PES operating segment. • 2016 In 2016, we recorded $0.7 million of expense related to the headquarters relocation. • 2015 There were no restructuring or impairment charges in 2015. The following table summarizes changes in the severance accrual from December 31, 2016 through December 31, 2017 : (Dollars in thousands) Severance related to headquarters relocation Balance at December 31, 2016 $ 470 Provisions 397 Payments (684 ) Balance at December 31, 2017 $ 183 The following table summarizes the restructuring and impairment charges recorded in our operating results in 2017 and 2016 : (Dollars in thousands) 2017 2016 Advanced Connectivity Solutions Severance and other related costs 1,305 375 Allocated asset impairment charges 161 — Elastomeric Material Solutions Severance and other related costs 834 176 Allocated asset impairment charges 103 — Power Electronics Solutions Severance and other related costs 621 183 Allocated asset impairment charges 543 — Total Charges for Restructuring and Impairment $ 3,567 $ 734 |
Quarterly Results of Operations
Quarterly Results of Operations (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except per share amounts) 2017 First Second Third Fourth Net sales $ 203,828 $ 201,424 $ 206,783 $ 209,008 Gross margin $ 80,350 $ 80,546 $ 82,188 $ 75,491 Net income $ 27,032 $ 20,896 $ 25,532 $ 6,999 Net income per share: Basic $ 1.50 $ 1.15 $ 1.40 $ 0.38 Diluted $ 1.47 $ 1.13 $ 1.37 $ 0.37 (Dollars in thousands, except per share amounts) 2016 First Second Third Fourth Net sales $ 160,566 $ 157,489 $ 165,259 $ 173,000 Gross margin $ 60,508 $ 60,199 $ 61,929 $ 66,849 Net income $ 14,928 $ 5,377 $ 16,065 $ 11,913 Net income per share: Basic $ 0.83 $ 0.30 $ 0.89 $ 0.66 Diluted $ 0.82 $ 0.29 $ 0.88 $ 0.65 |
Recent Accounting Standards
Recent Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards | RECENT ACCOUNTING STANDARDS In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. This ASU allows for reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2018-02 will have on the Company’s consolidated financial statements and disclosures. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Cuts and Jobs Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. Effective in the first quarter of 2018, the Company will elect to treat any potential GILTI inclusions as a period cost as we are not projecting any material impact from GILTI inclusions and any deferred taxes related to any inclusion would be immaterial. On December 22, 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we have determined that the $1.7 million of the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and liabilities and the $12.0 million of tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings was a provisional amount and a reasonable estimate at December 31, 2017. Management will subject these estimates to further analysis related to certain matters, such as federal and state interpretations of the provisions of U.S. Tax Reform, U.S. Treasury regulations, administrative interpretations or court decisions, a more detailed analysis of post-1986 undistributed foreign subsidiary earnings and profits (E&P) that may require further adjustments and changes to certain estimates as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to tax expense in the quarter of 2018 when the analysis is complete. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . These improvements expand and refine hedge accounting for both non-financial and financial risk components. Also, this amendment aligns the recognition and presentation of the effects of a hedging instrument and the hedged item in the financial statements. Additionally, this update includes certain targeted improvements to simplify the application of current guidance related to the assessment of hedge effectiveness. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. The Company adopted this standard on October 1, 2017. Upon adoption, the Company recognized $0.2 million in gains in its statement of operations. This gain was recorded to reverse previously recognized losses resulting from hedge ineffectiveness reclassified to the statement of operations from other comprehensive income during 2017. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Adoption of this standard will be applied prospectively to awards modified on or after the adoption date. The impact of this new standard will depend on the extent and nature of future changes to the terms and conditions of the Company’s share-based payment awards. Historically, the Company has not had significant changes to its share-based payment awards and therefore does not expect adoption of this guidance to have a material effect on the financial statements upon its adoption in 2018. In March 2017, the FASB issued ASU No. 2017-05 and ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost . The changes to the standard require employers to report the service cost component in the same line item as other compensation costs arising from services rendered by employees during the reporting period. The other components of net periodic pension benefit costs will be presented in the statement of operations separately from the service cost and outside of a subtotal of operating income from operations. In addition, only the service cost component may be eligible for capitalization where applicable. ASU No. 2017-05 and ASU 2017-07 are effective for annual periods beginning after December 15, 2017. The Company expects to adopt this guidance when effective and the adoption is not expected to have a material effect on the financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , in an effort to simplify the subsequent measurement of goodwill and the associated procedures to determine fair value. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this standard in the fourth quarter of 2017, which did not have a material impact on the financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , with the intention to reduce diversity in practice, as well as simplify elements of classification within the statement of cash flows for certain transactions. The update was effective for interim and annual reporting periods beginning after December 15, 2016. The accounting update was to be adopted using a retrospective approach. The Company adopted ASU 2016-15 effective January 1, 2017, and it did not have a material impact on our financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which contains amendments intended to simplify various aspects of share-based payment accounting and presentation in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, treatment of forfeitures and statutory tax withholding requirements, and classification in the statement of cash flows. The update was effective for interim and annual reporting periods beginning after December 15, 2016. The new standard required a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the period of adoption, with certain provisions requiring either a prospective or retrospective transition. The Company adopted ASU 2016-09 on January 1, 2017. Upon adoption, the Company recognized excess tax benefits of approximately $12.7 million in deferred tax assets that were previously not recognized in a cumulative-effect adjustment to retained earnings. In addition, the new guidance requires that all of the tax effects related to share-based payments at settlement or expiration be recorded through the statement of operations. The Company also adopted the standard with respect to treatment of forfeitures, which did not have a material impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to classify leases as either finance or operating leases and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. An accounting policy election may be made to account for leases with a term of 12 months or less similar to existing guidance for operating leases today. ASU No. 2016-02 supersedes the existing guidance on accounting for leases. The standard is effective for interim and annual reporting periods for fiscal years beginning after December 15, 2018. Early adoption of this standard is permitted and it is to be adopted using a modified retrospective approach. The Company has initiated its implementation plan, which includes evaluating the classification of our lease agreements and quantifying the accounting impact in accordance with the new accounting standard. The Company expects to adopt this accounting standard beginning in fiscal year 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , to achieve a consistent application of revenue recognition within the United States, resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the updated standard is effective for us beginning in the first quarter of 2018. Early adoption is permitted, but not before the original effective date of the standard. During 2016, the FASB issued new accounting standards updates regarding principal versus agent considerations in determining revenue recognition identifying performance obligations and licensing, collectability, sales tax, non-cash considerations, completed contracts, contract modifications and effect of accounting change. During 2017, the FASB issued new accounting standards updates regarding clarification of determining the customer in a service concession arrangement. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial implementation, without restatement of comparative periods. The Company plans to adopt this standard using the modified retrospective approach with the cumulative effect recognized at January 1, 2018. The Company has established a cross-functional coordinated implementation team and engaged a third party service provider to assist with the project. The Company has completed its evaluation of contracts. A substantial portion of the business will continue to recognize revenue on a “point in time” basis. The adoption of the new standard is estimated to increase Retained Earnings by approximately $4.0 million , net of tax as of January 1, 2018. The financial impact of adoption primarily relates to recognizing revenue on an “over time” basis due to performance obligations to deliver products that do not have an alternative use to the company whereby the company has an enforceable right to payment evidenced by contractual termination clauses. The cost incurred method will be used to measure the progress to completion as it is the best depiction of the transferring of goods to the customer. The Company has implemented changes to its systems, processes and internal controls, as necessary, to meet the reporting and disclosure requirements of the new standard. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Sale of Property On February 26, 2018, we signed an agreement for the planned sale of a building and parcel of land in Chandler, Arizona, for a sales price of $1.1 million . We expect the transaction to close in the second quarter of 2018. The asset has been classified as held for sale as of December 31, 2017 with a net book value of approximately $0.5 million . |
SCHEDULE II Valuation and Quali
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (Dollars in thousands) Balance at Beginning of Period Charged to (Reduction of) Costs and Expenses Taken Against Allowance Other (Deductions) Recoveries Balance at End of Period Allowance for Doubtful Accounts December 31, 2017 $ 1,952 $ (275 ) $ (152 ) $ — $ 1,525 December 31, 2016 $ 695 $ 1,321 $ (64 ) $ — $ 1,952 December 31, 2015 $ 476 $ 1,085 $ (866 ) $ — $ 695 (Dollars in thousands) Balance at Beginning of Period Charged to (Reduction of) Costs and Expenses Taken Against Allowance Other (Deductions) Recoveries Balance at End of Period Valuation on Allowance for Deferred Tax Assets December 31, 2017 $ 6,388 $ 2,366 $ — $ — $ 8,754 December 31, 2016 $ 6,202 $ 186 $ — $ — $ 6,388 December 31, 2015 $ 7,691 $ (1,484 ) $ — $ (5 ) $ 6,202 |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and our wholly‑owned subsidiaries, after elimination of inter-company accounts and transactions. In 2015, we changed our method for accounting for certain inventory items from the last in, first out (LIFO) method to the first in, first out (FIFO) method. Adjustments have been made to all periods and amounts presented to appropriately reflect the retrospective application of this accounting change. See the discussion below entitled “Inventories” for further information. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Organization | Organization Our reporting structure is comprised of the following operating segments: Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS) and Power Electronics Solutions (PES). The remaining operations are accumulated and reported as our Other operating segment. • Advanced Connectivity Solutions Our ACS operating segment designs, develops, manufactures and sells circuit materials and solutions enabling high-performance and high-reliability connectivity for applications in wireless communications infrastructure (e.g., power amplifiers, antennas, small cells and distributed antenna systems), automotive (e.g., active safety, advanced driver assistance systems, telematics and thermal management), connected devices, (e.g., mobile internet devices and Internet of Things), wired infrastructure (e.g., computing, servers and storage), consumer electronics and aerospace/defense. We sell our circuit materials under various trade names, including RO3000 ® , RO4000 ® , RT/duroid ® , AD Series TM and CLTE Series TM . Our ACS operating segment has manufacturing and administrative facilities in Chandler, Arizona; Rogers, Connecticut; Bear, Delaware; Evergem, Belgium; and Suzhou, China. • Elastomeric Material Solutions Our EMS operating segment designs, develops, manufactures and sells elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications including general industrial, portable electronics (e.g., mobile internet devices), consumer goods (e.g., protective sports equipment), automotive, mass transportation, construction and printing applications. We sell our elastomeric materials under various trade names, including DeWAL™, ARLON ® , PORON ® , XRD ® , BISCO ® , eSORBA ® , HeatSORB™, and Diversified Silicone Products. In November 2016, we acquired DeWAL Industries, a leading manufacturer of polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes and specialty products, and in January 2017, we acquired the principal operating assets of Diversified Silicone Products, Inc. (DSP), a custom silicone product development and manufacturing business. The acquisitions of DeWAL and DSP, and their subsequent integration into our EMS operating segment, has enabled us to extend the product portfolio and technology capabilities with complementary high-end, high performance elastomeric materials. As of December 31, 2017 , our EMS operating segment had administrative and manufacturing facilities in Woodstock, Connecticut; Rogers, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Santa Fe Springs, California; Ansan, Korea, and Suzhou, China. We also own 50% of (1) Rogers Inoac Corporation (RIC), a joint venture established in Japan to design, develop, manufacture and sell PORON products predominantly for the Japanese market and (2) Rogers INOAC Suzhou Corporation (RIS), a joint venture established in China to design, develop, manufacture and sell PORON products primarily for RIC customers in various Asian countries. INOAC Corporation owns the remaining 50% of both RIC and RIS. RIC has manufacturing facilities at INOAC facilities in Nagoya and Mie, Japan, and RIS has manufacturing facilities at Rogers’ facilities in Suzhou, China. • Power Electronics Solutions Our PES operating segment designs, develops, manufactures and sells ceramic substrate materials for power module applications (e.g., variable frequency drives, vehicle electrification and renewable energy), laminated busbars for power inverter and high power interconnect applications (e.g., mass transit, hybrid-electric and electric vehicles, renewable energy and variable frequency drives), and micro-channel coolers (e.g., laser cutting equipment). We sell our ceramic substrate materials and micro channel coolers under the curamik ® trade name, and our busbars under the ROLINX ® trade name. Our PES operating segment has administrative and manufacturing facilities in Ghent, Belgium; Eschenbach, Germany; Budapest, Hungary; and Suzhou, China. • Other Our Other operating segment consists of elastomer components for applications in ground transportation, office equipment, consumer and other markets; elastomer floats for level sensing in fuel tanks, motors, and storage tanks; and inverters for portable communications and automotive markets. Trade names for our elastomer components include: NITROPHYL ® floats for level sensing in fuel tanks, motors, and storage tanks and ENDUR ® elastomer rollers. The Arlon polyimide and thermoset laminate business was also included within our Other operating segment prior to its divestiture in December 2015. |
Cash Equivalents | Cash Equivalents Highly liquid investments with original maturities of three months or less are considered cash equivalents. These investments are stated at cost, which approximates fair value. |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures We account for our investments in and advances to unconsolidated joint ventures, all of which are 50% owned, using the equity method of accounting. |
Foreign Currency | Foreign Currency All balance sheet accounts of foreign subsidiaries are translated or remeasured at exchange rates in effect at each year end, and income statement items are translated using the average exchange rates for the year. Translation adjustments for those entities that operate under a local currency are recorded directly to a separate component of shareholders’ equity, while remeasurement adjustments for those entities that operate under the parent’s functional currency are recorded to the income statement as a component of “other income (expense), net.” Currency transaction gains and losses are reported as income or expense, respectively, in the consolidated statements of operations as a component of “other income (expense), net. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts is determined based on a variety of factors that affect the potential collectability of the related receivables, including the length of time receivables are past due, customer credit ratings, financial stability of customers, specific one-time events and past customer history. In addition, in circumstances where we are made aware of a specific customer’s inability to meet its financial obligations, a specific allowance is established. The majority of accounts are individually evaluated on a regular basis and appropriate reserves are established as deemed appropriate based on the criteria previously mentioned. The remainder of the reserve is based on management’s estimates and takes into consideration historical trends, market conditions and the composition of our customer base. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first in, first out (FIFO) method. An allowance is made for estimated losses due to obsolescence. The allowance is determined for groups of products based on purchases in the recent past and/or expected future demand and market conditions. Abnormal amounts of idle facility expense and waste are not capitalized in inventory. The allocation of fixed production overheads to the inventory cost is based on |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated on the basis of cost. For financial reporting purposes, provisions for depreciation are calculated on a straight‑line basis over the following estimated useful lives of the underlying assets: Years Buildings and improvements 30-40 Machinery and equipment 5-15 Office equipment 3-10 |
Software Costs | Software Costs We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, and (ii) compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which approximates three to five years. Capitalized software is included within “Property, plant and equipment, net of accumulated depreciation” in the consolidated statements of financial position. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We have made acquisitions over the years that included the recognition of intangible assets. Intangible assets are classified into three categories: (1) goodwill; (2) other intangible assets with definite lives subject to amortization; and (3) other intangible assets with indefinite lives not subject to amortization. Other intangible assets can include items such as trademarks and trade names, licensed technology, customer relationships and covenants not to compete, among other things. Each definite-lived other intangible asset is amortized over its respective economic useful life using the economic attribution method. Goodwill is tested for impairment annually and between annual impairment tests if events or changes in circumstances indicate the carrying value may be impaired. If it is more likely than not that our goodwill is impaired, then we compare the estimated fair value of each of our reporting units to their respective carrying value. If a reporting unit’s carrying value is greater than its fair value, then an impairment is recognized for the excess and charged to operations. We currently have four reporting units with goodwill: ACS, EMS, curamik® and Elastomer Components Division (ECD). Consistent with historical practice, the annual impairment test on these reporting units was performed as of November 30, 2017. The application of the annual goodwill impairment test requires significant judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units and determination of the fair value of each reporting unit. Determining the fair value is subjective and requires the use of significant estimates and assumptions, including financial projections for net sales, gross margin and operating margin, discount rates, terminal year growth rates and future market conditions, among others. We estimated the fair value of our reporting units using an income approach based on the present value of future cash flows through a five year discounted cash flow analysis. The discounted cash flow analysis utilized the discount rates for each of the reporting units ranging from 11.0% for EMS to 12.3% for curamik®, and a terminal year growth rate of 3% for all four reporting units. We believe this approach yields the most appropriate evidence of fair value as our reporting units are not easily compared to other corporations involved in similar businesses. We further believe that the assumptions and rates used in our annual goodwill impairment test are reasonable, but inherently uncertain. There were no impairment charges resulting from our goodwill impairment analysis in 2017. The ACS, EMS, curamik® and ECD reporting units had allocated goodwill of approximately $51.7 million , $111.6 million , $71.6 million and $2.2 million , respectively, at December 31, 2017 . Indefinite-lived other intangible assets are tested for impairment annually and between annual impairment tests if events or changes in circumstances indicate the carrying value may be impaired. If it is more likely than not that an indefinite-lived other intangible asset is impaired, then we compare the estimated fair value of that indefinite-lived other intangible asset to its respective carrying value. If an indefinite-lived other intangible asset’s carrying value is greater than its fair value, then the definite-lived other intangible asset's carrying value is compared to its estimated fair value and an impairment charge is recognized for the excess and charged to operations. The application of the annual indefinite-lived other intangible asset impairment test requires significant judgment, including the determination of fair value of each indefinite-lived other intangible asset. Fair value is primarily based on income approaches using discounted cash flow models, which have significant assumptions. Such assumptions are subject to variability from year to year and are directly impacted by global market conditions. There were no impairment charges resulting from our indefinite-lived other intangible assets impairment analysis in 2017. The curamik® reporting unit had an indefinite-lived other intangible asset of approximately $4.7 million at December 31, 2017 . Definite-lived other intangible assets are tested for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. The recoverability test involves comparing the estimated sum of the undiscounted cash flows for each definite-lived other intangible asset to its respective carrying value. If a definite-lived other intangible asset’s carrying value is greater than the sum of its undiscounted cash flows, then an impairment is recognized for the excess and charged to operations. The application of the recoverability test requires significant judgment, including the identification of the asset group and determination of undiscounted cash flows and fair value of the underlying definite-lived other intangible asset. Determination of undiscounted cash flows requires the use of significant estimates and assumptions, including certain financial projections. |
Environmental and Product Liabilities | Environmental and Product Liabilities We accrue for our environmental investigation, remediation, operating and maintenance costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For environmental matters, the most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. For sites with multiple potential responsible parties (PRPs), we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. When no amount within a range of estimates is more likely to occur than another, we accrue to the low end of the range and disclose the range. When future liabilities are determined to be reimbursable by insurance coverage, an accrual is recorded for the potential liability and a receivable is recorded for the estimated insurance reimbursement amount. We are exposed to the uncertain nature inherent in such remediation and the possibility that initial estimates will not reflect the final outcome of a matter. We periodically perform a formal analysis to determine potential future liability and related insurance coverage for asbestos-related matters. 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. We believe the assumptions used in our models for determining our potential exposure and related insurance coverage are reasonable at the present time, but such assumptions are inherently uncertain. Prior to 2017, due to the inherent uncertainties of the projection process and our limited amount of settlement and claims history, we utilized a ten -year projection period, which we concluded was appropriate as we did not believe we had sufficient data to justify a longer projection period. During 2017, we reviewed the projections of our current and future asbestos claims, and determined it was appropriate to extend the liability projection period to cover all current and future claims through 2058. We based our conclusion on our history and experience with the claims data, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expectation of a downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy. The year 2058 also represents the expected end of Rogers’ asbestos liability exposure and no further ongoing claims are expected past that date. As a result, we believe we are now able to make a reasonable estimate of the actuarially determined liability for current and future asbestos claims through 2058. As of December 31, 2017, the estimated liability and estimated insurance recovery for all current and future claims projected through 2058 was $76.2 million and $69.2 million , respectively. Given the inherent uncertainty in making projections, we plan to re-examine periodically the projections of current and future asbestos claims, and we will update them if needed based on our experience, changes in the assumptions underlying our models, and other relevant factors, such as changes in the tort system. 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 may incur additional charges for our asbestos liabilities and defense costs in the future, which could exceed existing reserves and insurance recovery. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Management believes that the carrying values of financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value based on the maturities of these instruments. The fair value of our borrowings under credit facility are determined using discounted cash flows based upon our estimated current interest cost for similar type borrowings or current market value, which falls under Level 2 of the fair value hierarchy. Based on our credit ratings at December 31, 2017, borrowings would generally bear interest at LIBOR plus 100 basis points. As the current borrowings under our Third Amended Credit Agreement bear interest at adjusted 1-month LIBOR plus 100 basis points, we believe the carrying value of our borrowings approximates fair value. See Note 2, “Fair Value Measurements” for further information on the calculation of fair value measurements. |
Concentration of Credit and Investment Risk | Concentration of Credit and Investment Risk We extend credit on an uncollateralized basis to almost all customers. Concentration of credit and geographic risk with respect to accounts receivable is limited due to the large number and general dispersion of accounts that constitute our customer base. We routinely perform credit evaluations on our customers. At December 31, 2017 and 2016 , there were no customers that individually accounted for more than ten percent of total accounts receivable. We have purchased credit insurance coverage for certain accounts receivable. We did not experience significant credit losses on customers’ accounts in 2017 , 2016 or 2015 . We are subject to credit and market risk by using derivative instruments. 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. We seek to minimize counterparty credit (or repayment) risk by entering into derivative transactions with major financial institutions with investment grade credit ratings. We invest excess cash principally in investment grade government securities and time deposits. We have established guidelines relative to diversification and maturities in order to maintain safety and liquidity. These guidelines are periodically reviewed and modified to reflect changes in market conditions. |
Income Taxes | Income Taxes We are subject to income taxes in the United States and in numerous foreign jurisdictions. The Company accounts for income taxes following ASC 740 (Accounting for Income Taxes) recognizing deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of a deferred tax asset will not be realized. As a result of the U.S. Tax Reform, all post-1986 undistributed foreign subsidiary earnings and profits (E&P) as of December 31, 2017 have been subjected to U.S. tax through the transition tax. Our unremitted foreign earnings could be subject to additional income taxes if they are redeployed outside of their country of origin. With the exception of certain of our Chinese subsidiaries, we have historically and continue to assert that foreign earnings are indefinitely reinvested. While we have not currently changed our assertion with respect to foreign earnings compared to prior years, we are currently evaluating the impact of U.S. Tax Reform on our global structure and any associated impacts it may have on our assertion on a go forward basis and as such have not included a provisional estimate of the impact. See Note 13, “Income Taxes”, for additional regarding U.S. Tax Reform. The U.S. Tax Reform Act includes two new U.S. tax base erosion provisions, the GILTI provisions and the BEAT provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2017. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. Starting January 1, 2018, the Company will account for BEAT in the period in which it is incurred to the extent the Company is subject to it. We record benefits for uncertain tax positions based on an assessment of whether it is more likely than not that the tax positions will be sustained by the taxing authorities. If this threshold is not met, no tax benefit of the uncertain position is recognized. If the threshold is met, we recognize the largest amount of the tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement. We recognize interest and penalties within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated statements of financial position. |
Revenue Recognition | Revenue Recognition We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the product has shipped and title and risk of ownership have passed, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured. We consider that the criteria for revenue recognition have been met upon shipment of the finished product, based on the majority of our shipping terms. Some shipping terms require the goods to be through customs or be received by the customer before title passes. In those instances, revenue is not recognized until either the customer has received the goods or they have passed through customs, depending on the circumstances. As appropriate, we record estimated reductions to revenue for customer returns and allowances and warranty claims. Provisions for such allowances are made at the time of sale and are typically derived from historical trends and other relevant information. See further discussion in Note 19, “Recent Accounting Standards” to “Item 8 - Financial Statements and Supplementary Data.” |
Shipping and Handling Charges | Shipping and Handling Charges Costs that we incur for shipping and handling charges are charged to “Cost of sales” and payments received from our customers for shipping and handling charges are included in “Net sales” on our consolidated statements of operations. |
Pension and Retiree Health Care and Life Insurance Benefits | Pension and Retiree Health Care and Life Insurance Benefits We provide various defined benefit pension plans for our U.S. employees and we sponsor multiple fully insured or self-funded medical plans and fully insured life insurance plans for retirees. In 2013, the defined benefit pension plans were frozen, so that future benefits no longer accrue. The costs and obligations associated with these plans are dependent upon various actuarial assumptions used in calculating such amounts. These assumptions include discount rates, long-term rate of return on plan assets, mortality rates, and other factors. The assumptions used in these models are determined as follows: (i) the discount rate used is based on the PruCurve index; (ii) the long-term rate of return on plan assets is determined based on historical portfolio results, market results and our expectations of future returns, as well as current market assumptions related to long-term return rates; and (iii) the mortality rate is based on a mortality projection that estimates current longevity rates and their impact on the long-term plan obligations. We review these assumptions periodically throughout the year and update as necessary. |
Earnings Per Share | Certain potential options to purchase shares were excluded from the calculation of diluted weighted-average shares outstanding because the exercise price was greater than the average market price of our capital stock during the year. For 2015, 44,350 shares were excluded. No shares were excluded in 2017 and 2016. Earnings Per Share |
Hedging Activity | Hedging Activity From time to time, we use derivative instruments to manage commodity, interest rate and foreign currency exposures. Derivative instruments are viewed as risk management tools and are not used for trading or speculative purposes. To qualify for hedge accounting treatment, derivatives used for hedging purposes must be designated and deemed effective as a hedge of the identified underlying risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in the fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. Derivatives used to hedge forecasted cash flows associated with interest rates, foreign currency commitments, or forecasted commodity purchases are accounted for as cash flow hedges. For those derivative instruments that qualify for hedge accounting treatment, if the hedge is highly effective, all changes in the fair value of the derivative hedging instrument are recorded in other comprehensive income. The derivative hedging instrument will be reclassified to earnings when the hedged item impacts earnings. For those derivative instruments that do not qualify for hedge accounting treatment, any related gains and losses are recognized in the consolidated statements of operations as a component of “other income (expense), net. |
Advertising Cost | Advertising Costs Advertising is expensed as incurred |
Equity Compensation | Equity Compensation Equity compensation is comprised of restricted stock units and stock options. Performance-based restricted stock unit compensation expense is based on achievement of certain performance and service conditions. The fair value of the awards is determined based on the market value of the underlying stock price at the grant date and marked to market over the vesting period based on probabilities and projections of the underlying performance measures. Time-based restricted stock units compensation is expensed over the vesting period, which is typically three years . The fair value of the awards is determined based on the market value of the underlying stock price at the grant date. Stock option fair value is measured at the grant date, based on the grant-date fair value of the awards ultimately expected to vest and, in most cases, is recognized as an expense on a straight-line basis over the vesting period, which is typically four years . A provision in our stock option agreements requires us to accelerate the expense for retirement eligible employees, as any unvested options would immediately vest upon retirement for such employees. We develop estimates used in calculating the grant-date fair value of stock options to determine the amount of equity compensation to be recorded. We calculate the grant-date fair value using the Black-Scholes valuation model. The use of this valuation model requires estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield and forfeiture rates. |
Recent Accounting Standards | RECENT ACCOUNTING STANDARDS In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. This ASU allows for reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2018-02 will have on the Company’s consolidated financial statements and disclosures. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Cuts and Jobs Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. Effective in the first quarter of 2018, the Company will elect to treat any potential GILTI inclusions as a period cost as we are not projecting any material impact from GILTI inclusions and any deferred taxes related to any inclusion would be immaterial. On December 22, 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we have determined that the $1.7 million of the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and liabilities and the $12.0 million of tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings was a provisional amount and a reasonable estimate at December 31, 2017. Management will subject these estimates to further analysis related to certain matters, such as federal and state interpretations of the provisions of U.S. Tax Reform, U.S. Treasury regulations, administrative interpretations or court decisions, a more detailed analysis of post-1986 undistributed foreign subsidiary earnings and profits (E&P) that may require further adjustments and changes to certain estimates as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to tax expense in the quarter of 2018 when the analysis is complete. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . These improvements expand and refine hedge accounting for both non-financial and financial risk components. Also, this amendment aligns the recognition and presentation of the effects of a hedging instrument and the hedged item in the financial statements. Additionally, this update includes certain targeted improvements to simplify the application of current guidance related to the assessment of hedge effectiveness. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. The Company adopted this standard on October 1, 2017. Upon adoption, the Company recognized $0.2 million in gains in its statement of operations. This gain was recorded to reverse previously recognized losses resulting from hedge ineffectiveness reclassified to the statement of operations from other comprehensive income during 2017. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Adoption of this standard will be applied prospectively to awards modified on or after the adoption date. The impact of this new standard will depend on the extent and nature of future changes to the terms and conditions of the Company’s share-based payment awards. Historically, the Company has not had significant changes to its share-based payment awards and therefore does not expect adoption of this guidance to have a material effect on the financial statements upon its adoption in 2018. In March 2017, the FASB issued ASU No. 2017-05 and ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost . The changes to the standard require employers to report the service cost component in the same line item as other compensation costs arising from services rendered by employees during the reporting period. The other components of net periodic pension benefit costs will be presented in the statement of operations separately from the service cost and outside of a subtotal of operating income from operations. In addition, only the service cost component may be eligible for capitalization where applicable. ASU No. 2017-05 and ASU 2017-07 are effective for annual periods beginning after December 15, 2017. The Company expects to adopt this guidance when effective and the adoption is not expected to have a material effect on the financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , in an effort to simplify the subsequent measurement of goodwill and the associated procedures to determine fair value. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this standard in the fourth quarter of 2017, which did not have a material impact on the financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , with the intention to reduce diversity in practice, as well as simplify elements of classification within the statement of cash flows for certain transactions. The update was effective for interim and annual reporting periods beginning after December 15, 2016. The accounting update was to be adopted using a retrospective approach. The Company adopted ASU 2016-15 effective January 1, 2017, and it did not have a material impact on our financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which contains amendments intended to simplify various aspects of share-based payment accounting and presentation in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, treatment of forfeitures and statutory tax withholding requirements, and classification in the statement of cash flows. The update was effective for interim and annual reporting periods beginning after December 15, 2016. The new standard required a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the period of adoption, with certain provisions requiring either a prospective or retrospective transition. The Company adopted ASU 2016-09 on January 1, 2017. Upon adoption, the Company recognized excess tax benefits of approximately $12.7 million in deferred tax assets that were previously not recognized in a cumulative-effect adjustment to retained earnings. In addition, the new guidance requires that all of the tax effects related to share-based payments at settlement or expiration be recorded through the statement of operations. The Company also adopted the standard with respect to treatment of forfeitures, which did not have a material impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to classify leases as either finance or operating leases and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. An accounting policy election may be made to account for leases with a term of 12 months or less similar to existing guidance for operating leases today. ASU No. 2016-02 supersedes the existing guidance on accounting for leases. The standard is effective for interim and annual reporting periods for fiscal years beginning after December 15, 2018. Early adoption of this standard is permitted and it is to be adopted using a modified retrospective approach. The Company has initiated its implementation plan, which includes evaluating the classification of our lease agreements and quantifying the accounting impact in accordance with the new accounting standard. The Company expects to adopt this accounting standard beginning in fiscal year 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , to achieve a consistent application of revenue recognition within the United States, resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the updated standard is effective for us beginning in the first quarter of 2018. Early adoption is permitted, but not before the original effective date of the standard. During 2016, the FASB issued new accounting standards updates regarding principal versus agent considerations in determining revenue recognition identifying performance obligations and licensing, collectability, sales tax, non-cash considerations, completed contracts, contract modifications and effect of accounting change. During 2017, the FASB issued new accounting standards updates regarding clarification of determining the customer in a service concession arrangement. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial implementation, without restatement of comparative periods. The Company plans to adopt this standard using the modified retrospective approach with the cumulative effect recognized at January 1, 2018. The Company has established a cross-functional coordinated implementation team and engaged a third party service provider to assist with the project. The Company has completed its evaluation of contracts. A substantial portion of the business will continue to recognize revenue on a “point in time” basis. The adoption of the new standard is estimated to increase Retained Earnings by approximately $4.0 million , net of tax as of January 1, 2018. The financial impact of adoption primarily relates to recognizing revenue on an “over time” basis due to performance obligations to deliver products that do not have an alternative use to the company whereby the company has an enforceable right to payment evidenced by contractual termination clauses. The cost incurred method will be used to measure the progress to completion as it is the best depiction of the transferring of goods to the customer. The Company has implemented changes to its systems, processes and internal controls, as necessary, to meet the reporting and disclosure requirements of the new standard. |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Inventories consisted of the following: As of December 31, (Dollars in thousands) 2017 2016 Raw materials $ 43,092 $ 29,788 Work-in-process 28,133 26,440 Finished goods 41,332 34,902 Total inventories $ 112,557 $ 91,130 |
Schedule of property, plant and equipment, estimated useful lives | For financial reporting purposes, provisions for depreciation are calculated on a straight‑line basis over the following estimated useful lives of the underlying assets: Years Buildings and improvements 30-40 Machinery and equipment 5-15 Office equipment 3-10 As of December 31, (Dollars in thousands) 2017 2016 Land $ 14,620 $ 15,855 Buildings and improvements 135,191 138,493 Machinery and equipment 238,000 220,238 Office equipment 56,554 54,013 444,365 428,599 Accumulated depreciation (289,909 ) (259,178 ) Property, plant and equipment, net 154,456 169,421 Equipment in process 25,155 7,495 Total property, plant and equipment, net $ 179,611 $ 176,916 |
Schedule of calculation of numerator and denominator in earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31, (In thousands, except per share amounts) 2017 2016 2015 Numerator: Net income $ 80,459 $ 48,283 $ 46,320 Denominator: Weighted-average shares outstanding - basic 18,154 17,991 18,371 Effect of dilutive shares 393 232 309 Weighted-average shares outstanding - diluted 18,547 18,223 18,680 Basic earnings per share: $ 4.43 $ 2.68 $ 2.52 Diluted earnings per share: $ 4.34 $ 2.65 $ 2.48 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation | measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, include: Derivative Instruments at Fair Value as of December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Foreign currency contracts $ — $ (396 ) $ — $ (396 ) Copper derivative contracts $ — $ 2,016 $ — $ 2,016 Interest rate swap $ — $ 41 $ — $ 41 Derivative Instruments at Fair Value as of December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Foreign currency contracts $ — $ (170 ) $ — $ (170 ) Copper derivative contracts $ — $ 1,277 $ — $ 1,277 |
Hedging Transactions and Deri33
Hedging Transactions and Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional values of outstanding derivative positions | As of December 31, 2017 , the volume of our copper contracts outstanding were: Volume of Copper Derivatives January 2018 - March 2018 140 metric tons per month April 2018 - June 2018 153 metric tons per month July 2018 - September 2018 153 metric tons per month October 2018 - December 2018 119 metric tons per month As of December 31, 2017 the notional values of these foreign currency forward contracts were: Notional Values of Foreign Currency Derivatives KRW/USD ₩ 4,503,980,000 EUR/CNY € 1,049,585 JPY/EUR ¥ 325,000,000 EUR/USD € 7,068,140 EUR/HUF € 563,119 USD/CNY $ 12,828,710 |
Gain (loss) on derivative instruments | Effects on Statements of Operations and Statements of Comprehensive Income (Loss): (Dollars in thousands) The Effect of Derivative Instruments on the Financial Statements for the year ended December 31, 2017 Fair Values of Derivative Instruments as of December 31, 2017 Foreign Exchange Contracts Location Gain/(Loss) Other Assets Contracts not designated as hedging instruments Other income (expense), net $ (7 ) $ (396 ) Copper Derivative Instruments Contracts not designated as hedging instruments Other income (expense), net $ 1,928 $ 2,016 Interest Rate Swap Instrument Contracts designated as hedging instruments Other comprehensive income (loss) $ 41 $ 41 (Dollars in thousands) The Effect of Derivative Instruments on the Financial Statements for the year ended December 31, 2016 Fair Values of Derivative Instruments as of December 31, 2016 Foreign Exchange Contracts Location Gain/(Loss) Other Assets Contracts not designated as hedging instruments Other income (expense), net $ (170 ) $ (170 ) Copper Derivative Instruments Contracts not designated as hedging instruments Other income (expense), net $ 625 $ 1,277 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated balances related to each component of accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive income (loss) by component for the year ended December 31, 2017 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, 2016 $ (46,446 ) $ (45,816 ) $ — $ (92,262 ) Other comprehensive income before reclassifications 28,463 — 26 28,489 Actuarial net gain (loss) incurred in the fiscal year — (1,481 ) — (1,481 ) Amounts reclassified from accumulated other comprehensive income — 99 — 99 Net current-period other comprehensive income 28,463 (1,382 ) 26 27,107 Ending Balance December 31, 2017 $ (17,983 ) $ (47,198 ) $ 26 $ (65,155 ) (1) Net of taxes of $9,563 and $9,160 for the years ended December 31, 2017 and December 31, 2016 , respectively. (2) Net of taxes of $15 and $0 for the years ended December 31, 2017 and December 31, 2016 , respectively. The changes in accumulated other comprehensive income (loss) by component for the year ended December 31, 2016 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, 2015 $ (41,365 ) $ (47,082 ) $ (11 ) $ (88,458 ) Other comprehensive income before reclassifications (5,081 ) — — (5,081 ) Actuarial net gain (loss) incurred in the fiscal year — 1,106 — 1,106 Amounts reclassified from accumulated other comprehensive income — 160 11 171 Net current-period other comprehensive income (5,081 ) 1,266 11 (3,804 ) Ending Balance December 31, 2016 $ (46,446 ) $ (45,816 ) $ — $ (92,262 ) (1) Net of taxes of $9,160 and $9,879 for the years ended December 31, 2016 and December 31, 2015 , respectively. (2) Net of taxes of $0 and $5 for the years ended December 31, 2016 and December 31, 2015 , respectively. |
Reclassification out of accumulated other comprehensive income | The reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2017 were as follows: Details about accumulated other comprehensive income components Amounts reclassified to/from accumulated other comprehensive income (loss) for the period ended December 31, 2017 Affected line item in the statement where net income is presented Unrealized gains and losses on derivative instruments: $ 41 Other income (expense), net (15 ) Income tax expense $ 26 Net of tax Amortization of defined benefit pension and other post-retirement benefit items: Actuarial losses (gains) $ 154 Total before tax (1) (55 ) Income tax expense $ 99 Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 10, “Pension Benefits and Retirement Health and Life Insurance Benefits” for additional details. The reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2016 were as follows: Details about accumulated other comprehensive income components Amounts reclassified from accumulated other comprehensive income (loss) for the period ended December 31, 2016 Affected line item in the statement where net income is presented Unrealized gains and losses on derivative instruments: $ 16 Other income (expense), net (5 ) Income tax expense $ 11 Net of tax Amortization of defined benefit pension and other post-retirement benefit items: Actuarial losses (gains) $ 246 Total before tax (1) (86 ) Income tax expense $ 160 Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 10, “Pension Benefits and Other Postretirement Benefit Plans” for additional details. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Business acquisition, pro forma information | The following unaudited pro forma financial information presents the combined results of operations of Rogers, DSP, DeWAL and Arlon as if the DSP acquisition had occurred on January 1, 2016, the DeWAL acquisition occurred on January 1, 2015, and the Arlon acquisition occurred on January 1, 2014. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the DSP, DeWAL and Arlon acquisitions been completed as of January 1, 2016, January 1, 2015 and January 1, 2014, respectively, and should not be taken as indicative of our future consolidated results of operations. For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net sales $ 821,043 $ 724,877 $ 693,462 Net income 81,184 50,349 41,976 |
Diversified Silicone Products, Inc. | |
Business Acquisition [Line Items] | |
Schedule of assets acquired and liabilities assumed | (Dollars in thousands) January 6, 2017 Assets: Accounts receivable $ 2,724 Prepaid expenses 21 Inventory 2,433 Property, plant & equipment 1,589 Other intangible assets 35,860 Goodwill 17,793 Total assets 60,420 Liabilities: Accounts payable 179 Accrued expenses 50 Total liabilities 229 Fair value of net assets acquired $ 60,191 |
DeWAL | |
Business Acquisition [Line Items] | |
Schedule of assets acquired and liabilities assumed | (Dollars in thousands) November 23, 2016 Assets: Cash and cash equivalents $ 1,539 Accounts receivable 7,513 Other current assets 691 Inventory 9,915 Property, plant & equipment 9,932 Other intangible assets 73,500 Goodwill 35,985 Other long-term assets 101 Total assets 139,176 Liabilities: Accounts payable 2,402 Other current liabilities 1,292 Total liabilities 3,694 Fair value of net assets acquired $ 135,482 |
Arlon | |
Business Acquisition [Line Items] | |
Schedule of assets acquired and liabilities assumed | The following table represents the fair values assigned to the acquired assets and liabilities in the transaction: (Dollars in thousands) January 22, 2015 Assets: Cash and cash equivalents $ 142 Accounts receivable 17,301 Other current assets 856 Inventory 9,916 Deferred income tax assets, current 1,084 Property, plant & equipment 30,667 Other intangible assets 50,020 Goodwill 85,565 Other long-term assets 106 Total assets 195,657 Liabilities: Accounts payable 4,958 Other current liabilities 4,385 Deferred tax liability 23,225 Other long-term liabilities 4,540 Total liabilities 37,108 Fair value of net assets acquired $ 158,549 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | For financial reporting purposes, provisions for depreciation are calculated on a straight‑line basis over the following estimated useful lives of the underlying assets: Years Buildings and improvements 30-40 Machinery and equipment 5-15 Office equipment 3-10 As of December 31, (Dollars in thousands) 2017 2016 Land $ 14,620 $ 15,855 Buildings and improvements 135,191 138,493 Machinery and equipment 238,000 220,238 Office equipment 56,554 54,013 444,365 428,599 Accumulated depreciation (289,909 ) (259,178 ) Property, plant and equipment, net 154,456 169,421 Equipment in process 25,155 7,495 Total property, plant and equipment, net $ 179,611 $ 176,916 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill, by segment | The changes in the carrying amount of goodwill for the period ending December 31, 2017 , by operating segment, were as follows: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total December 31, 2016 $ 51,693 $ 91,531 $ 62,983 $ 2,224 $ 208,431 Purchase accounting adjustment — 346 — — 346 DSP acquisition — 17,793 — — 17,793 Foreign currency translation adjustment — 1,905 8,632 — 10,537 December 31, 2017 $ 51,693 $ 111,575 $ 71,615 $ 2,224 $ 237,107 |
Intangible assets | The changes in the carrying amount of other intangible assets for the two-year period ending December 31, 2017 , were as follows: December 31, 2017 December 31, 2016 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 128,907 $ 22,514 $ 106,393 $ 96,148 $ 14,311 $ 81,837 Technology 73,891 33,491 40,400 68,880 24,365 44,515 Trademarks and patents 10,213 2,157 8,056 6,825 1,156 5,669 Covenant not to compete 1,799 1,108 691 1,419 932 487 Total definite-lived other intangible assets 214,810 59,270 155,540 173,272 40,764 132,508 Indefinite-lived other intangible asset 4,738 — 4,738 4,168 — 4,168 Total other intangible assets $ 219,548 $ 59,270 $ 160,278 $ 177,440 $ 40,764 $ 136,676 |
Weighted average amortization period, by intangible asset class | The weighted average amortization period as of December 31, 2017 , by definite-lived other intangible asset class, is presented in the table below: Definite-Lived Other Intangible Asset Class Weighted Average Amortization Period Customer relationships 9.6 Technology 5.4 Trademarks and patents 6.5 Covenant not to compete 2.5 Total definite-lived other intangible assets 8.3 |
Summarized Financial Informat38
Summarized Financial Information of Unconsolidated Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint ventures accounted for under equity method of accounting | Joint Venture Location Operating Segment Fiscal Year-End Rogers INOAC Corporation (RIC) Japan Elastomeric Material Solutions October 31 Rogers INOAC Suzhou Corporation (RIS) China Elastomeric Material Solutions December 31 |
Summarized information for joint ventures | The summarized financial information for the joint ventures for the periods indicated was as follows: As of December 31, (Dollars in thousands) 2017 2016 Current assets $ 40,934 $ 33,951 Noncurrent assets $ 4,947 $ 5,545 Current liabilities $ 9,519 $ 7,485 Shareholders’ equity $ 36,362 $ 32,011 For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net sales $ 54,597 $ 47,321 $ 43,438 Gross profit $ 21,462 $ 16,829 $ 11,993 Net income $ 9,796 $ 8,292 $ 5,753 |
Share Repurchase (Tables)
Share Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of shares of common stock through the repurchase program | We repurchased the following shares of capital stock through our share repurchase program during the years presented below: For the Years Ended December 31, (Dollars in thousands) 2017 2016 Shares of capital stock repurchased — 140,498 Value of capital stock repurchased $ — $ 7,995 |
Pension Benefit and Retiremen40
Pension Benefit and Retirement Health and Life Insurance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Change in benefit obligation | (Dollars in thousands) Pension Benefits Retirement Health and Life Insurance Benefits Change in benefit obligation: 2017 2016 2017 2016 Benefit obligation at beginning of year $ 177,696 $ 182,359 $ 2,504 $ 2,722 Service cost — — 80 133 Interest cost 7,356 7,530 71 75 Actuarial (gain) loss 9,601 (3,621 ) 460 72 Benefit payments (8,893 ) (8,572 ) (533 ) (498 ) Plan amendment — — (545 ) — Benefit obligation at end of year $ 185,760 $ 177,696 $ 2,037 $ 2,504 |
Change in plan assets | Change in plan assets: 2017 2016 2017 2016 Fair value of plan assets at the beginning of the year $ 171,778 $ 171,007 $ — $ — Actual return on plan assets 16,799 8,999 — — Employer contributions 372 344 533 498 Benefit payments (8,893 ) (8,572 ) (533 ) (498 ) Fair value of plan assets at the end of the year 180,056 171,778 — — Unfunded status $ (5,704 ) $ (5,918 ) $ (2,037 ) $ (2,504 ) |
Amounts recognized in consolidated balance sheet | Amounts included in the consolidated statements of financial position consist of: (Dollars in thousands) Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Noncurrent assets $ 3,021 $ 2,583 $ — $ — Current liabilities (5 ) — (352 ) (512 ) Noncurrent liabilities (8,720 ) (8,501 ) (1,685 ) (1,992 ) Net amount recognized at end of year $ (5,704 ) $ (5,918 ) $ (2,037 ) $ (2,504 ) |
Schedule of net periodic benefit cost not yet recognized | (Dollars in thousands) Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Net actuarial (loss) gain $ (59,645 ) $ (59,377 ) $ 63 $ 523 Prior service benefit — — 2,821 3,878 Net amount recognized at end of year $ (59,645 ) $ (59,377 ) $ 2,884 $ 4,401 |
Components of net periodic benefit cost | Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Postretirement Health and Life Insurance Benefits 2017 2016 2015 2017 2016 2015 Service cost $ — $ — — $ 80 $ 133 $ 411 Interest cost 7,356 7,530 7,523 71 75 216 Expected return of plan assets (9,221 ) (10,808 ) (11,148 ) — — — Amortization of prior service cost (credit) — — — (1,602 ) (1,489 ) (248 ) Amortization of net loss 1,755 1,784 1,690 — (47 ) (12 ) Settlement charge — — 57 — — — Net periodic benefit cost (benefit) $ (110 ) $ (1,494 ) $ (1,878 ) $ (1,451 ) $ (1,328 ) $ 367 |
Schedule of weighted-average assumptions used | Weighted-average assumptions used to determine benefit obligations at December 31: Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Discount rate 3.70 % 4.25 % 3.25 % 3.25 % Weighted-average assumptions used to determine net benefit cost for the years ended December 31: Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Discount rate 3.70 % 4.25 % 3.25 % 3.00 % Expected long-term rate of return on plan assets 4.94 % 5.51 % — — |
Schedule of effect of one-percentage-point change in assumed health care cost trend rates | A one -percentage point change in assumed health care cost trend rates would be expected to have the following effects: (Dollars in thousands) Increase Decrease Effect on total service and interest cost $ 9 $ (9 ) Effect on other postretirement benefit obligations 68 (63 ) |
Schedule of allocation of plan assets | The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value as of December 31, 2017 and 2016 . Assets at Fair Value as of December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Pooled separate accounts $ — $ 4,610 $ — $ 4,610 Fixed income bonds — 162,934 — 162,934 Mutual funds 6,223 — — 6,223 Guaranteed deposit account — — 6,289 6,289 Total assets at fair value $ 6,223 $ 167,544 $ 6,289 $ 180,056 The following table presents the fair value of the pension plan net assets by asset category as of December 31, 2017 and 2016 : (Dollars in thousands) 2017 2016 Pooled separate accounts $ 4,610 $ 7,587 Fixed income bonds 162,934 111,070 Mutual funds 6,223 44,054 Guaranteed deposit account 6,289 9,067 Total assets at fair value $ 180,056 $ 171,778 |
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 year ended December 31, 2017 : (Dollars in thousands) Guaranteed Deposit Account Balance at beginning of year $ 9,067 Unrealized gains relating to instruments still held at the reporting date 216 Purchases, sales, issuances and settlements (net) (2,994 ) Balance at end of year $ 6,289 |
Schedule of future benefit payments | The following pension benefit payments are expected to be paid through the utilization of plan assets for the funded plans and from the Company’s operating cash flows for the unfunded plans. The Retiree Health and Life Insurance benefits, for which no funding has been made, are expected to be paid from the Company’s operating cash flows. The benefit payments are based on the same assumptions used to measure our benefit obligation at the end of fiscal 2017 . (Dollars in thousands) Pension Benefits Retiree Health and Life Insurance Benefits 2018 $ 9,261 $ 352 2019 $ 9,335 $ 316 2020 $ 9,423 $ 267 2021 $ 9,644 $ 174 2022 $ 9,956 $ 128 2023-2027 $ 52,676 $ 795 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Consolidated income (loss) from continuing operations before income taxes by location | Consolidated income before income taxes consisted of: (Dollars in thousands) 2017 2016 2015 Domestic $ 39,751 $ 10,888 $ 14,832 International 93,174 71,392 51,341 Total $ 132,925 $ 82,280 $ 66,173 |
Income tax expense (benefit) by location | The income tax expense in the consolidated statements of operations consisted of: (Dollars in thousands) Current Deferred Total 2017 Domestic $ 7,535 $ 21,936 $ 29,471 International 27,418 (4,423 ) 22,995 Total $ 34,953 $ 17,513 $ 52,466 2016 Domestic $ 2,078 $ 3,376 $ 5,454 International 24,537 4,006 28,543 Total $ 26,615 $ 7,382 $ 33,997 2015 Domestic $ 993 $ 4,272 $ 5,265 International 15,192 (604 ) 14,588 Total $ 16,185 $ 3,668 $ 19,853 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities as of December 31, 2017 and 2016 , were comprised of the following: (Dollars in thousands) 2017 2016 Deferred tax assets Accrued employee benefits and compensation 8,410 9,899 Postretirement benefit obligations — 3,335 Tax loss and credit carryforwards 7,905 7,146 Reserves and accruals 4,699 6,361 Other 2,977 2,792 Total deferred tax assets 23,991 29,533 Less deferred tax asset valuation allowance (8,754 ) (6,388 ) Total deferred tax assets, net of valuation allowance 15,237 23,145 Deferred tax liabilities Depreciation and amortization 14,300 14,965 Postretirement benefit obligations 2,311 — Unremitted earnings 3,100 7,239 Other 224 190 Total deferred tax liabilities 19,935 22,394 Net deferred tax asset $ (4,698 ) $ 751 |
Effective income tax rate reconciliation | Income tax expense differs from the amount computed by applying the United States federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows: (Dollars in thousands) 2017 2016 2015 Tax expense at Federal statutory income tax rate $ 46,529 $ 28,798 $ 23,161 International tax rate differential (9,603 ) (2,260 ) (4,792 ) Foreign source income, net of tax credits (excluding U.S. Tax Reform) 1,087 1,215 2,449 State tax, net of federal 279 (200 ) (416 ) Unrecognized tax benefits 2,874 (5,555 ) 148 U.S. Tax Reform 13,683 — — Equity compensation excess tax deductions (3,867 ) — — General business credits (1,080 ) (1,125 ) (908 ) Acquisition related expenses — — 453 Distribution related foreign taxes 2,173 12,433 — Valuation allowance change (excluding U.S. Tax Reform) 1,393 171 (1,489 ) Other (1,002 ) 520 1,247 Income tax expense (benefit) $ 52,466 $ 33,997 $ 19,853 |
Reconciliation of unrecognized tax benefits | Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2017 and December 31, 2016 , were as follows: (Dollars in thousands) 2017 2016 Beginning balance $ 5,883 $ 10,571 Gross increases - current period tax positions 7,056 520 Gross increases - tax positions in prior periods 3,243 — Gross decreases - tax positions in prior periods (375 ) (498 ) Foreign currency exchange 467 (137 ) Lapse of statute of limitations (1,709 ) (4,573 ) Ending balance $ 14,565 $ 5,883 |
Shareholders' Equity and Stock
Shareholders' Equity and Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of capital stock reserved for possible future issuance | Shares of capital stock reserved for possible future issuance were as follows: As of December 31, 2017 2016 Shares reserved for issuance under the stock acquisition program (1) 120,883 120,883 Shares reserved for issuance under outstanding stock options and restricted stock unit awards 545,018 659,302 Additional shares reserved for issuance under Rogers Corporation 2009 Long-Term Equity Compensation Plan 793,603 892,163 Shares reserved for issuance under the Rogers Employee Savings and Investment Plan (2) 169,044 169,044 Shares reserved for issuance under the Rogers Corporation Global Stock Ownership Plan for Employees 117,987 133,113 Deferred compensation to be paid in stock, including deferred stock units 17,100 22,752 Total 1,763,635 1,997,257 (1) As of December 31, 2017 , the Company no longer offers capital stock under the stock acquisition program. (2) As of December 31, 2017 , the Company no longer offers its capital stock as an investment option under the Rogers Employee Savings and Investment Plan. |
Activity under our stock option plans | A summary of the activity under our stock option plans for the fiscal years ended 2017 , 2016 and 2015 , is presented below: 2017 2016 2015 Options Weighted- Options Weighted- Options Weighted- Outstanding at beginning of year 116,575 $ 37.76 212,038 $ 40.47 393,347 $ 40.72 Options exercised (83,292 ) 37.04 (95,113 ) 43.56 (178,759 ) 40.90 Options forfeited — — (350 ) 44.32 (2,550 ) 40.09 Outstanding at year-end 33,283 36.40 116,575 37.76 212,038 40.47 Options exercisable at year-end 33,283 116,575 204,394 A summary of the activity under our stock option plans as of December 31, 2017 and changes during the year 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 December 31, 2016 116,575 $ 37.76 3.2 4,552,580 Options exercised (83,292 ) 37.04 Options forfeited — — Options outstanding at December 31, 2017 33,283 36.40 2.2 4,177,655 Options exercisable at December 31, 2017 33,283 36.40 2.2 4,177,655 Options vested at December 31, 2017 33,283 36.40 2.2 4,177,655 |
Schedule of weighted-average assumptions used | Weighted-average assumptions used to determine benefit obligations at December 31: Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Discount rate 3.70 % 4.25 % 3.25 % 3.25 % Weighted-average assumptions used to determine net benefit cost for the years ended December 31: Pension Benefits Retirement Health and Life Insurance Benefits 2017 2016 2017 2016 Discount rate 3.70 % 4.25 % 3.25 % 3.00 % Expected long-term rate of return on plan assets 4.94 % 5.51 % — — |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of weighted-average assumptions used | Below were the assumptions used in the Monte Carlo calculation: 2017 2016 Expected volatility 33.6 % 29.6 % Expected term (in years) 3 3 Risk-free interest rate 1.38 % 0.93 % |
Schedule of restricted stock and restricted stock activity | A summary of activity under the performance-based restricted stock units plans for the fiscal years ended 2017 , 2016 and 2015 is presented below: 2017 2016 2015 Awards Outstanding Weighted- Awards Outstanding Weighted- Awards Outstanding Weighted- Non-vested awards outstanding at beginning of year 151,769 $ 89.72 107,229 $ 66.13 92,437 $ 52.75 Awards granted 56,147 110.77 84,443 69.01 51,475 78.01 Stock issued (34,442 ) 86.59 (25,397 ) 72.68 (20,910 ) 41.27 Awards forfeited or expired (4,272 ) 99.35 (14,506 ) 104.83 (15,773 ) 59.45 Non-vested awards outstanding at end of year 169,202 $ 97.16 151,769 $ 89.72 107,229 $ 66.13 |
Time Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock and restricted stock activity | 2017 2016 2015 Awards Outstanding Weighted- Awards Outstanding Weighted- Awards Outstanding Weighted- Non-vested awards outstanding at beginning of year 239,189 $ 57.71 208,318 $ 64.27 238,386 $ 53.80 Awards granted 80,535 83.17 118,660 51.70 75,160 77.15 Stock issued (140,208 ) 58.18 (60,326 ) 64.03 (93,813 ) 48.35 Awards forfeited or expired (6,185 ) 60.70 (27,463 ) 64.60 (11,415 ) 61.32 Non-vested awards outstanding at end of year 173,331 $ 69.10 239,189 $ 57.71 208,318 $ 64.27 |
Deferred Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock and restricted stock activity | 2017 2016 2015 Awards Outstanding Weighted- Average Grant Date Fair Value Awards Outstanding Weighted- Awards Outstanding Weighted- Awards outstanding at beginning of year 11,900 $ 58.82 23,950 $ 27.22 30,150 $ 24.43 Awards granted 9,250 109.48 11,900 58.82 10,300 73.79 Stock issued (11,900 ) 109.36 (23,950 ) 52.69 (16,500 ) 51.20 Awards outstanding at end of year 9,250 $ 109.48 11,900 $ 58.82 23,950 $ 27.22 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | The following table includes future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of December 31, 2017 : (Dollars in thousands) Year Ending December 31, 2018 $ 756 2019 756 2020 737 2021 4,669 2022 76 Thereafter — Total 6,994 Less: Interest (542 ) Present Value of Net Future Minimum Lease Payments $ 6,452 |
Schedule of Future Minimum Lease Payments for Capital Leases | The following table includes future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2017 : (Dollars in thousands) Year Ending December 31, 2018 $ 3,833 2019 3,152 2020 2,461 2021 2,022 2022 1,527 Thereafter 474 Total $ 13,469 |
Operating and capital leases | The following table includes lease expense for the three years ended December 31, 2017 : For the Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Operating leases $ 3,819 $ 3,567 $ 3,531 Capital lease $ 608 $ 564 $ 667 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table presents information about our recent asbestos claims activity: For the Year Ended December 31, 2017 2016 Claims outstanding at beginning of year 605 489 New claims filed 362 288 Pending claims concluded* (280 ) (172 ) Claims outstanding at end of year 687 605 * For the year ended December 31, 2017 , 258 claims were dismissed and 22 claims were settled. For the year ended December 31, 2016 , 155 claims were dismissed and 17 claims were settled. Settlements totaled approximately $5.0 million for the year ended December 31, 2017 , compared to $4.4 million for the year ended December 31, 2016 . |
Schedule of Loss Contingencies by Contingency | For the years ended December 31, 2017 and 2016 , our forecasted asbestos-related claims and insurance receivables for the 40 year projection period and 10 year projection period, respectively, were as follows: (Dollars in millions) 2017 2016 Asbestos-related claims $ 76.2 $ 52.0 Asbestos-related insurance receivables $ 69.2 $ 48.4 |
Operating Segments and Geogra44
Operating Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable segment information | The following table sets forth the information about our operating segments for the periods indicated: (Dollars in thousands) Advanced Connectivity Solutions Elastomeric Material Solutions Power Electronics Solutions Other Total 2017 Net sales $ 301,092 $ 312,661 $ 184,954 $ 22,336 $ 821,043 Operating income $ 56,186 $ 51,404 $ 16,036 $ 7,153 $ 130,779 Total assets $ 353,786 $ 489,456 $ 261,034 $ 20,858 $ 1,125,134 Capital expenditures $ 9,900 $ 7,563 $ 9,238 $ 514 $ 27,215 Depreciation & amortization $ 16,351 $ 16,270 $ 10,572 $ 906 $ 44,099 Investment in unconsolidated joint ventures $ — $ 18,324 $ — $ — $ 18,324 Equity income in unconsolidated joint ventures $ — $ 4,898 $ — $ — $ 4,898 2016 Net sales $ 277,787 $ 203,181 $ 152,367 $ 22,979 $ 656,314 Operating income $ 43,965 $ 26,593 $ 5,965 $ 7,329 $ 83,852 Total assets $ 361,746 $ 421,011 $ 247,187 $ 26,556 $ 1,056,500 Capital expenditures $ 7,569 $ 4,051 $ 6,009 $ 507 $ 18,136 Depreciation & amortization $ 15,654 $ 10,141 $ 11,208 $ 844 $ 37,847 Investment in unconsolidated joint ventures $ — $ 16,183 $ — $ — $ 16,183 Equity income in unconsolidated joint ventures $ — $ 4,146 $ — $ — $ 4,146 2015 Net sales $ 267,630 $ 180,898 $ 150,288 $ 42,627 $ 641,443 Operating income $ 45,115 $ 19,979 $ 3,750 $ 7,411 $ 76,255 Total assets $ 315,358 $ 264,982 $ 320,755 $ 29,260 $ 930,355 Capital expenditures $ 15,532 $ 4,103 $ 4,185 $ 1,017 $ 24,837 Depreciation & amortization $ 15,403 $ 9,280 $ 7,855 $ 1,516 $ 34,054 Investment in unconsolidated joint ventures $ — $ 15,348 $ — $ — $ 15,348 Equity income in unconsolidated joint ventures $ — $ 2,890 $ — $ — $ 2,890 |
Reconciliation of Operating Income to the Consolidated Statements of Operations | The following table sets forth the operating income reconciliation to the consolidated statements of operations for the periods indicated: (Dollars in thousands) 2017 2016 2015 Operating income $ 130,779 $ 83,852 $ 76,255 Equity income in unconsolidated joint ventures 4,898 4,146 2,890 Other income (expense), net 3,379 (1,788 ) (8,492 ) Interest expense, net (6,131 ) (3,930 ) (4,480 ) Income before income taxes $ 132,925 $ 82,280 $ 66,173 |
Revenue and long-lived assets by geographic region | Information relating to our operations by geographic area was as follows: Net Sales (1) Long-lived Assets (2) (Dollars in thousands) 2017 2016 2015 2017 2016 2015 United States $ 225,621 $ 158,136 $ 164,478 $ 370,964 $ 326,199 $ 218,439 China 272,184 236,961 227,993 57,404 62,728 65,994 Germany 89,203 79,480 76,569 114,497 101,725 110,240 Other 234,035 181,737 172,403 34,131 32,242 34,460 Total $ 821,043 $ 656,314 $ 641,443 $ 576,996 $ 522,894 $ 429,133 (1) Net sales are allocated to countries based on the location of the customer. Countries with 10% or more of net sales have been disclosed. (2) Long-lived assets are based on the location of the asset and are comprised of goodwill and other intangible assets and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed. |
Restructuring and Impairment 45
Restructuring and Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | The following table summarizes changes in the severance accrual from December 31, 2016 through December 31, 2017 : (Dollars in thousands) Severance related to headquarters relocation Balance at December 31, 2016 $ 470 Provisions 397 Payments (684 ) Balance at December 31, 2017 $ 183 |
Restructuring and impairment charges | The following table summarizes the restructuring and impairment charges recorded in our operating results in 2017 and 2016 : (Dollars in thousands) 2017 2016 Advanced Connectivity Solutions Severance and other related costs 1,305 375 Allocated asset impairment charges 161 — Elastomeric Material Solutions Severance and other related costs 834 176 Allocated asset impairment charges 103 — Power Electronics Solutions Severance and other related costs 621 183 Allocated asset impairment charges 543 — Total Charges for Restructuring and Impairment $ 3,567 $ 734 |
Quarterly Results of Operatio46
Quarterly Results of Operations (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information | (Dollars in thousands, except per share amounts) 2017 First Second Third Fourth Net sales $ 203,828 $ 201,424 $ 206,783 $ 209,008 Gross margin $ 80,350 $ 80,546 $ 82,188 $ 75,491 Net income $ 27,032 $ 20,896 $ 25,532 $ 6,999 Net income per share: Basic $ 1.50 $ 1.15 $ 1.40 $ 0.38 Diluted $ 1.47 $ 1.13 $ 1.37 $ 0.37 |
Organization and Summary of S47
Organization and Summary of Significant Accounting Policies (Investments in Unconsolidated Joint Ventures) (Details) | Dec. 31, 2017 |
Rogers INOAC Corporation | |
Schedule of Equity Method Investments [Line Items] | |
Joint venture ownership percentage | 50.00% |
Rogers INOAC Corporation | INOAC Corporation | |
Schedule of Equity Method Investments [Line Items] | |
Joint venture ownership percentage | 50.00% |
Rogers I N O A C Suzhou Corporation | |
Schedule of Equity Method Investments [Line Items] | |
Joint venture ownership percentage | 50.00% |
Rogers I N O A C Suzhou Corporation | INOAC Corporation | |
Schedule of Equity Method Investments [Line Items] | |
Joint venture ownership percentage | 50.00% |
Organization and Summary of S48
Organization and Summary of Significant Accounting Policies (Foreign Currency) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Currency transaction adjustment gain (loss) | $ 0.9 | $ (2.7) | $ 0.3 |
Organization and Summary of S49
Organization and Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory, Gross [Abstract] | ||
Raw materials | $ 43,092 | $ 29,788 |
Work-in-process | 28,133 | 26,440 |
Finished goods | 41,332 | 34,902 |
Total inventories | $ 112,557 | $ 91,130 |
Organization and Summary of S50
Organization and Summary of Significant Accounting Policies (Property, Plant and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 30 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Organization and Summary of S51
Organization and Summary of Significant Accounting Policies (Software Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Net capitalized software and development costs | $ 4.7 | $ 7.7 |
Software and Software Development Costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Software and Software Development Costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years |
Organization and Summary of S52
Organization and Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |||
Currency transaction adjustment gain (loss) | $ 900 | $ (2,700) | $ 300 |
Number of reportable segments | Segment | 4 | ||
Goodwill | $ 237,107 | 208,431 | |
Indefinite-lived other intangible asset | 4,738 | 4,168 | |
Definite-lived other intangible assets | 155,540 | 132,508 | |
Advanced Connectivity Solutions | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 51,693 | $ 51,693 | |
Definite-lived other intangible assets | $ 11,100 | ||
Elastomeric Material Solutions | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Sensitivity analysis, Discount rate used | 11.00% | ||
Definite-lived other intangible assets | $ 128,100 | ||
Curamik Electronics Solutions | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Sensitivity analysis, Discount rate used | 12.30% | ||
Sensitivity analysis, Terminal year growth rate | 3.00% | ||
Goodwill | $ 71,615 | ||
Indefinite-lived other intangible asset | 4,700 | ||
Definite-lived other intangible assets | 16,400 | ||
Elastomer Component Division | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 2,224 |
Organization and Summary of S53
Organization and Summary of Significant Accounting Policies (Fair Value of Financial Statements) (Details) - London Interbank Offered Rate (LIBOR) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Interest rate spread over variable rate | 100.00% |
Third Amended Credit Agreement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Interest rate spread over variable rate | 100.00% |
Organization and Summary of S54
Organization and Summary of Significant Accounting Policies (Environmental and Product Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Loss contingency, projection period | 10 years | |
Asbestos-related liabilities, estimated liability | $ 76.2 | $ 52 |
Asbestos-related liabilities, estimated insurance recovery | $ 69.2 | $ 48.4 |
Organization and Summary of S55
Organization and Summary of Significant Accounting Policies (Concentration of Credit and Investment Risk) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Concentration risk, percentage | 10.00% | ||
Significant credit losses, amount | $ 0 | $ 0 | $ 0 |
Organization and Summary of S56
Organization and Summary of Significant Accounting Policies (Income Taxes) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax liabilities, undistributed foreign earnings | $ 6.1 |
Organization and Summary of S57
Organization and Summary of Significant Accounting Policies (Earning Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Net income | $ 80,459 | $ 48,283 | $ 46,320 |
Weighted-average shares outstanding - basic | 18,154,000 | 17,991,000 | 18,371,000 |
Effect of dilutive stock options (in shares) | 393,000 | 232,000 | 309,000 |
Denominator for diluted earnings per share - Adjusted weighted-average shares and assumed conversions (shares) | 18,547,000 | 18,223,000 | 18,680,000 |
Basic earnings per share (in dollars per share) | $ 4.43 | $ 2.68 | $ 2.52 |
Diluted earnings per share (in dollars per share) | $ 4.34 | $ 2.65 | $ 2.48 |
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0 | 44,350 |
Organization and Summary of S58
Organization and Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 4.4 | $ 3 | $ 3.2 |
Organization and Summary of S59
Organization and Summary of Significant Accounting Policies (Equity Compensation) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Employee stock option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Fair Value Measurements (Variou
Fair Value Measurements (Various Instruments That Require Fair Value Measurement) (Detail) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | $ (396) | $ (170) |
Foreign currency contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Foreign currency contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | (396) | (170) |
Foreign currency contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Copper derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 2,016 | 1,277 |
Copper derivative contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | 0 |
Copper derivative contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 2,016 | 1,277 |
Copper derivative contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | $ 0 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 41 | |
Interest rate swap | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 0 | |
Interest rate swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | 41 | |
Interest rate swap | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives | $ 0 |
Hedging Transactions and Deri61
Hedging Transactions and Derivative Financial Instruments (Additional Information) (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contract | Mar. 31, 2017USD ($) | Feb. 17, 2017USD ($) | |
Bank Term Loan | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of derivative contracts related to minimizing risk associated with potential rise in copper prices | Contract | 21 | ||
Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loss on cash flow hedge ineffectiveness | $ 300 | ||
Revolving Credit Facility | Third Amended Credit Agreement | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Credit agreement, maximum borrowing capacity | $ 450,000 | ||
Revolving Credit Facility | Third Amended Credit Agreement | Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, amount of hedged item | $ 75,000 | ||
Accounting Standards Update 2017-12 | Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cumulative effect on retained earnings | $ 200 |
Hedging Transactions and Deri62
Hedging Transactions and Derivative Financial Instruments (Notional Values of Derivative Instruments) (Detail) | Dec. 31, 2017JPY (¥)T / mo | Dec. 31, 2017EUR (€)T / mo | Dec. 31, 2017USD ($)T / mo | Dec. 31, 2017KRW (₩)T / mo |
Not Designated as Hedging Instrument | Foreign Exchange Forward | USD/KRW Notional Amount of Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | ₩ | ₩ 4,503,980,000 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | EUR/CNY Notional Amount of Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | ₩ | ₩ 1,049,585 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | JPY/EUR Notional Amount of Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | ¥ | ¥ 325,000,000 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | EUR/USD Notional Amount of Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | € | € 7,068,140 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | EUR/HUF Notional Amount of Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | € | € 563,119 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | USD/CNY Notional Amount of Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Notional Values of Foreign Currency Derivatives | $ | $ 12,828,710 | |||
Designated as Hedging Instrument | Copper, January 2018 - March 2018 | ||||
Derivative [Line Items] | ||||
Notional Value of Copper Derivatives | 140 | 140 | 140 | 140 |
Designated as Hedging Instrument | Copper, April 2018 - June 2018 | ||||
Derivative [Line Items] | ||||
Notional Value of Copper Derivatives | 153 | 153 | 153 | 153 |
Designated as Hedging Instrument | Copper, July 2018 - September 2018 | ||||
Derivative [Line Items] | ||||
Notional Value of Copper Derivatives | 153 | 153 | 153 | 153 |
Designated as Hedging Instrument | Copper, October 2018 - December 2018 | ||||
Derivative [Line Items] | ||||
Notional Value of Copper Derivatives | 119 | 119 | 119 | 119 |
Hedging Transactions and Deri63
Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Not Designated as Hedging Instrument | Other income, net | Foreign Exchange Option Contracts | ||
Derivative [Line Items] | ||
Foreign Exchange Contracts, Not designated as hedging instruments, Amount of gain (loss) | $ (7) | $ (170) |
Foreign Exchange Contracts, Not designated as hedging instruments, Other assets (liabilities) | (396) | (170) |
Not Designated as Hedging Instrument | Other income, net | Copper Derivative Instruments | ||
Derivative [Line Items] | ||
Copper Derivative Instruments, Not designated as hedging instruments, Amount of gain (loss) | 1,928 | 625 |
Copper Derivative Instruments, Not designated as hedging instruments, Other assets (liabilities) | 2,016 | $ 1,277 |
Designated as Hedging Instrument | Other comprehensive income (loss) | Interest Rate Swap Instrument | ||
Derivative [Line Items] | ||
Interest Rate Swap Instrument, Designated as hedging instruments, Amount of gain (loss) | 41 | |
Interest Rate Swap Instrument, Designated as hedging instruments, Other assets (liabilities) | $ 41 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income or Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||
Beginning Balance | $ 635,786 | $ 584,582 | $ 587,281 | ||||
Actuarial net gain (loss) incurred in fiscal year, net of tax (Note 4) | (1,481) | 1,106 | 2,760 | ||||
Ending Balance | 766,573 | 635,786 | 584,582 | ||||
AOCI, Pension and other postretirement benefit plans, tax | 9,563 | 9,160 | 9,879 | ||||
AOCI, Cumulative changes in net gain (loss) from cash flow hedges, tax | 15 | 0 | 5 | ||||
Foreign currency translation adjustments | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||
Beginning Balance | (46,446) | (41,365) | |||||
Other comprehensive income before reclassifications | 28,463 | (5,081) | |||||
Actuarial net gain (loss) incurred in fiscal year, net of tax (Note 4) | 0 | 0 | |||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |||||
Net current-period other comprehensive income | 28,463 | (5,081) | |||||
Ending Balance | (17,983) | (46,446) | (41,365) | ||||
Funded status of pension plans and other postretirement benefits | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||
Beginning Balance | [1] | (45,816) | [2] | (47,082) | |||
Other comprehensive income before reclassifications | 0 | [2] | 0 | [1] | |||
Actuarial net gain (loss) incurred in fiscal year, net of tax (Note 4) | (1,481) | [2] | 1,106 | [1] | |||
Amounts reclassified from accumulated other comprehensive income | 99 | [2] | 160 | [1] | |||
Net current-period other comprehensive income | (1,382) | [2] | 1,266 | [1] | |||
Ending Balance | (47,198) | [2] | (45,816) | [1],[2] | (47,082) | [1] | |
Unrealized gain (loss) on derivative instruments | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||
Beginning Balance | [3] | 0 | [4] | (11) | |||
Other comprehensive income before reclassifications | 26 | [4] | 0 | [3] | |||
Actuarial net gain (loss) incurred in fiscal year, net of tax (Note 4) | 0 | [4] | 0 | [3] | |||
Amounts reclassified from accumulated other comprehensive income | 0 | [4] | 11 | [3] | |||
Net current-period other comprehensive income | 26 | [4] | 11 | [3] | |||
Ending Balance | 26 | [4] | 0 | [3],[4] | (11) | [3] | |
Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||
Beginning Balance | (92,262) | (88,458) | (65,094) | ||||
Other comprehensive income before reclassifications | 28,489 | (5,081) | |||||
Actuarial net gain (loss) incurred in fiscal year, net of tax (Note 4) | (1,481) | 1,106 | |||||
Amounts reclassified from accumulated other comprehensive income | 99 | 171 | |||||
Net current-period other comprehensive income | 27,107 | (3,804) | |||||
Ending Balance | $ (65,155) | $ (92,262) | $ (88,458) | ||||
[1] | Net of taxes of $9,160 and $9,879 for the years ended December 31, 2016 and December 31, 2015, respectively. | ||||||
[2] | Net of taxes of $9,563 and $9,160 for the years ended December 31, 2017 and December 31, 2016, respectively. | ||||||
[3] | Net of taxes of $0 and $5 for the years ended December 31, 2016 and December 31, 2015, respectively. | ||||||
[4] | Net of taxes of $15 and $0 for the years ended December 31, 2017 and December 31, 2016, respectively. |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) (Reclassification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net | $ 3,379 | $ (1,788) | $ (8,492) | ||
Income tax expense | (52,466) | (33,997) | (19,853) | ||
Net income | 80,459 | 48,283 | $ 46,320 | ||
Unrealized gain (loss) on derivative instruments | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from AOCI, net of tax | 0 | [1] | 11 | [2] | |
Accumulated defined benefit plans adjustment, Net gain (loss) attributable to parent | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income before income taxes | 154 | [3] | 246 | [4] | |
Funded status of pension plans and other postretirement benefits | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from AOCI, tax | (55) | (86) | |||
Reclassification from AOCI, net of tax | 99 | [5] | 160 | [6] | |
Amounts reclassified from accumulated other comprehensive income (loss) for the period ended December 31, 2013 | Unrealized gain (loss) on derivative instruments | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net | 41 | ||||
Other income (expense), net | 16 | ||||
Income tax expense | (15) | (5) | |||
Net income | $ 26 | $ 11 | |||
[1] | Net of taxes of $15 and $0 for the years ended December 31, 2017 and December 31, 2016, respectively. | ||||
[2] | Net of taxes of $0 and $5 for the years ended December 31, 2016 and December 31, 2015, respectively. | ||||
[3] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 10, “Pension Benefits and Retirement Health and Life Insurance Benefits” for additional details. | ||||
[4] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 10, “Pension Benefits and Other Postretirement Benefit Plans” for additional details. | ||||
[5] | Net of taxes of $9,563 and $9,160 for the years ended December 31, 2017 and December 31, 2016, respectively. | ||||
[6] | Net of taxes of $9,160 and $9,879 for the years ended December 31, 2016 and December 31, 2015, respectively. |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Jan. 06, 2017 | Nov. 23, 2016 | Dec. 21, 2015 | Jan. 22, 2015 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Weighted average useful life | 8 years 3 months 18 days | |||||||
Amortization expense | $ 14,800 | $ 11,200 | $ 10,900 | |||||
Estimated future amortization expense for 2018 | $ 15,300 | 15,300 | ||||||
Estimated future amortization expense for 2019 | 15,100 | 15,100 | ||||||
Estimated future amortization expense for 2020 | 11,800 | 11,800 | ||||||
Estimated future amortization expense for 2021 | 11,100 | 11,100 | ||||||
Estimated future amortization expense for 2022 | 10,700 | 10,700 | ||||||
Proceeds from the sale of a business | $ 1,265 | 0 | 0 | 1,265 | ||||
Loss on disposition of a business | $ 4,800 | $ 0 | 0 | $ 4,819 | ||||
Customer relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Weighted average useful life | 9 years 7 months 6 days | |||||||
Technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Weighted average useful life | 5 years 4 months 24 days | |||||||
Covenant not to compete | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Weighted average useful life | 2 years 6 months | |||||||
Diversified Silicone Products, Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Purchase price | $ 60,200 | |||||||
Estimated future amortization expense for 2018 | 1,900 | $ 1,900 | ||||||
Estimated future amortization expense for 2019 | 1,800 | 1,800 | ||||||
Estimated future amortization expense for 2020 | 1,800 | 1,800 | ||||||
Estimated future amortization expense for 2021 | 1,800 | 1,800 | ||||||
Estimated future amortization expense for 2022 | 1,700 | 1,700 | ||||||
Business acquisition, acquiree revenue | 5,500 | $ 22,300 | ||||||
Diversified Silicone Products, Inc. | Customer relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 30,500 | |||||||
Weighted average useful life | 11 years 9 months 18 days | |||||||
Diversified Silicone Products, Inc. | Technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 1,800 | |||||||
Weighted average useful life | 4 years 3 months 18 days | |||||||
Diversified Silicone Products, Inc. | Trademarks | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 3,300 | |||||||
Weighted average useful life | 11 years 8 months 12 days | |||||||
Diversified Silicone Products, Inc. | Covenant not to compete | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 300 | |||||||
Weighted average useful life | 4 years 1 month 6 days | |||||||
DeWAL | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Purchase price | $ 135,500 | |||||||
Cash from credit facility used to fund acquisition | 136,000 | |||||||
Estimated future amortization expense for 2018 | 3,700 | $ 3,700 | ||||||
Estimated future amortization expense for 2019 | 4,100 | 4,100 | ||||||
Estimated future amortization expense for 2020 | 4,300 | 4,300 | ||||||
Estimated future amortization expense for 2021 | 4,300 | 4,300 | ||||||
Estimated future amortization expense for 2022 | 4,300 | 4,300 | ||||||
Transaction costs | 100 | 2,100 | ||||||
Business acquisition, acquiree revenue | $ 62,000 | 5,400 | ||||||
DeWAL | Customer relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 46,700 | |||||||
Weighted average useful life | 13 years 6 months | |||||||
DeWAL | Technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 22,000 | |||||||
Weighted average useful life | 8 years 7 months 6 days | |||||||
DeWAL | Trademarks | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 4,300 | |||||||
Weighted average useful life | 5 years 2 months 12 days | |||||||
DeWAL | Covenant not to compete | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | $ 500 | |||||||
Weighted average useful life | 3 years 9 months 18 days | |||||||
Arlon | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Purchase price | $ 157,000 | |||||||
Cash from credit facility used to fund acquisition | 125,000 | |||||||
Estimated future amortization expense for 2018 | 5,800 | $ 5,800 | ||||||
Estimated future amortization expense for 2019 | 5,800 | 5,800 | ||||||
Estimated future amortization expense for 2020 | $ 5,800 | $ 5,800 | ||||||
Transaction costs | 1,500 | |||||||
Business acquisition, acquiree revenue | 100,000 | |||||||
Business acquisition, acquiree net income | $ 25,100 | |||||||
Arlon | Customer relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 32,700 | |||||||
Weighted average useful life | 6 years | |||||||
Arlon | Technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | 15,800 | |||||||
Weighted average useful life | 5 years 8 months 12 days | |||||||
Arlon | Trademarks | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | $ 1,600 | |||||||
Weighted average useful life | 3 years 2 months 12 days | |||||||
Minimum | Diversified Silicone Products, Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | $ 1,100 | |||||||
Minimum | DeWAL | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 2,400 | |||||||
Minimum | Arlon | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 1,800 | |||||||
Maximum | Diversified Silicone Products, Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 2,000 | |||||||
Maximum | DeWAL | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 4,300 | |||||||
Maximum | Arlon | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 5,800 | |||||||
Revolving Credit Facility | Diversified Silicone Products, Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Cash from credit facility used to fund acquisition | $ 30,000 | |||||||
Selling, General and Administrative Expenses | Diversified Silicone Products, Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Transaction costs | $ 500 |
Acquisitions Schedule of recogn
Acquisitions Schedule of recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 06, 2017 | Dec. 31, 2016 | Nov. 23, 2016 | Jan. 22, 2015 |
Assets: | |||||
Goodwill | $ 237,107 | $ 208,431 | |||
Diversified Silicone Products, Inc. | |||||
Assets: | |||||
Accounts receivable | $ 2,724 | ||||
Prepaid expenses | 21 | ||||
Inventory | 2,433 | ||||
Property, plant & equipment | 1,589 | ||||
Other intangible assets | 35,860 | ||||
Goodwill | 17,793 | ||||
Total assets | 60,420 | ||||
Liabilities: | |||||
Accounts payable | 179 | ||||
Accrued expenses | 50 | ||||
Total liabilities | 229 | ||||
Fair value of net assets acquired | $ 60,191 | ||||
DeWAL | |||||
Assets: | |||||
Cash and equivalents | $ 1,539 | ||||
Accounts receivable | 7,513 | ||||
Other current assets | 691 | ||||
Inventory | 9,915 | ||||
Property, plant & equipment | 9,932 | ||||
Other intangible assets | 73,500 | ||||
Goodwill | 35,985 | ||||
Other long-term assets | 101 | ||||
Total assets | 139,176 | ||||
Liabilities: | |||||
Accounts payable | 2,402 | ||||
Other current liabilities | 1,292 | ||||
Total liabilities | 3,694 | ||||
Fair value of net assets acquired | $ 135,482 | ||||
Arlon | |||||
Assets: | |||||
Cash and equivalents | $ 142 | ||||
Accounts receivable | 17,301 | ||||
Other current assets | 856 | ||||
Inventory | 9,916 | ||||
Deferred income tax assets, current | 1,084 | ||||
Property, plant & equipment | 30,667 | ||||
Other intangible assets | 50,020 | ||||
Goodwill | 85,565 | ||||
Other long-term assets | 106 | ||||
Total assets | 195,657 | ||||
Liabilities: | |||||
Accounts payable | 4,958 | ||||
Other current liabilities | 4,385 | ||||
Deferred tax liability | 23,225 | ||||
Other long-term liabilities | 4,540 | ||||
Total liabilities | 37,108 | ||||
Fair value of net assets acquired | $ 158,549 |
Acquisitions Business Acquisiti
Acquisitions Business Acquisition Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | |||
Net sales | $ 821,043 | $ 724,877 | $ 693,462 |
Net income | $ 81,184 | $ 50,349 | $ 41,976 |
Property, Plant and Equipment69
Property, Plant and Equipment (Schedule of Plant Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 444,365 | $ 428,599 |
Accumulated depreciation | (289,909) | (259,178) |
Property, plant and equipment, net | 154,456 | 169,421 |
Equipment in process | 25,155 | 7,495 |
Total property, plant and equipment, net | 179,611 | 176,916 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,620 | 15,855 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 135,191 | 138,493 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 238,000 | 220,238 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 56,554 | $ 54,013 |
Property, Plant and Equipment70
Property, Plant and Equipment (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||
Property plant and equipment, held for sale | $ 500 | $ 900 | ||||
(Gain)/loss on sale of long-lived assets | 5,329 | $ 0 | $ 0 | |||
Depreciation | $ 29,300 | $ 26,600 | $ 23,200 | |||
Belgium | ||||||
Property, Plant and Equipment [Line Items] | ||||||
(Gain)/loss on sale of long-lived assets | $ 4,387 | $ (900) |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2016 | $ 208,431 |
Arlon adjustment | 346 |
DeWAL acquisition | 17,793 |
Foreign currency translation adjustment | 10,537 |
December 31, 2017 | 237,107 |
Advanced Connectivity Solutions | |
Goodwill [Roll Forward] | |
December 31, 2016 | 51,693 |
Arlon adjustment | 0 |
DeWAL acquisition | 0 |
Foreign currency translation adjustment | 0 |
December 31, 2017 | 51,693 |
Elastomeric Material Solutions | |
Goodwill [Roll Forward] | |
December 31, 2016 | 91,531 |
Arlon adjustment | 346 |
DeWAL acquisition | 17,793 |
Foreign currency translation adjustment | 1,905 |
December 31, 2017 | 111,575 |
Power Electronics Solutions | |
Goodwill [Roll Forward] | |
December 31, 2016 | 62,983 |
Arlon adjustment | 0 |
DeWAL acquisition | 0 |
Foreign currency translation adjustment | 8,632 |
Other | |
Goodwill [Roll Forward] | |
December 31, 2016 | 2,224 |
Arlon adjustment | 0 |
DeWAL acquisition | 0 |
Foreign currency translation adjustment | $ 0 |
Goodwill and Other Intangible72
Goodwill and Other Intangible Assets (Additional Information) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reportable segments | Segment | 4 | |||
Gross carrying amount | $ 214,810 | $ 214,810 | $ 173,272 | |
Amortization expense | 14,800 | $ 11,200 | $ 10,900 | |
Estimated future amortization expense for 2018 | 15,300 | 15,300 | ||
Estimated future amortization expense for 2019 | 15,100 | 15,100 | ||
Estimated future amortization expense for 2020 | 11,800 | 11,800 | ||
Estimated future amortization expense for 2021 | 11,100 | 11,100 | ||
Estimated future amortization expense for 2022 | 10,700 | $ 10,700 | ||
Technology License Agreement | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, finite-lived | $ 500 |
Goodwill and Other Intangible73
Goodwill and Other Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 214,810 | $ 173,272 |
Accumulated Amortization | 59,270 | 40,764 |
Net Carrying Amount | 155,540 | 132,508 |
Indefinite-lived other intangible asset | 4,738 | 4,168 |
Total other intangible assets | 219,548 | 177,440 |
Other intangible assets, net of amortization | 160,278 | 136,676 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 128,907 | 96,148 |
Accumulated Amortization | 22,514 | 14,311 |
Net Carrying Amount | 106,393 | 81,837 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 73,891 | 68,880 |
Accumulated Amortization | 33,491 | 24,365 |
Net Carrying Amount | 40,400 | 44,515 |
Trademarks and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,213 | 6,825 |
Accumulated Amortization | 2,157 | 1,156 |
Net Carrying Amount | 8,056 | 5,669 |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,799 | 1,419 |
Accumulated Amortization | 1,108 | 932 |
Net Carrying Amount | $ 691 | $ 487 |
Goodwill and Other Intangible74
Goodwill and Other Intangible Assets (Weighted Average Amortization Period by Intangible Asset Class) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 8 years 3 months 18 days |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 9 years 7 months 6 days |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 5 years 4 months 24 days |
Trademarks and patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 6 years 6 months |
Covenant not to compete | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 2 years 6 months |
Summarized Financial Informat75
Summarized Financial Information of Unconsolidated Joint Ventures (Additional Information) (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)joint_venture | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of joint ventures that are 50% owned | joint_venture | 2 | ||
Equity income in unconsolidated joint ventures | $ 4,898 | $ 4,146 | $ 2,890 |
Due from joint ventures, current | 3,700 | 2,400 | |
Due to joint ventures, current | $ 2,100 | $ 1,600 | |
Rogers INOAC Corporation | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in joint venture | 50.00% |
Summarized Financial Informat76
Summarized Financial Information of Unconsolidated Joint Ventures (Accounted for Under Equity Method of Accounting) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | --12-31 |
Rogers INOAC Corporation | Japan | Elastomeric Material Solutions | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | --10-31 |
Rogers I N O A C Suzhou Corporation | China | Elastomeric Material Solutions | |
Schedule of Equity Method Investments [Line Items] | |
Fiscal Year-End | --12-31 |
Summarized Financial Informat77
Summarized Financial Information of Unconsolidated Joint Ventures (Assets, Liabilities, and Equity) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 40,934 | $ 33,951 |
Noncurrent assets | 4,947 | 5,545 |
Current liabilities | 9,519 | 7,485 |
Shareholders’ equity | $ 36,362 | $ 32,011 |
Summarized Financial Informat78
Summarized Financial Information of Unconsolidated Joint Ventures (Sales, Profit, and Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Net sales | $ 54,597 | $ 47,321 | $ 43,438 |
Gross profit | 21,462 | 16,829 | 11,993 |
Net income | $ 9,796 | $ 8,292 | $ 5,753 |
Share Repurchase (Details)
Share Repurchase (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Aug. 06, 2015 |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 100 | |
Stock repurchase program, remaining authorized repurchase amount | $ 52 |
Share Repurchase (Schedule of S
Share Repurchase (Schedule of Shares of Common Stock Through the Repurchase Program) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Shares of capital stock repurchased (in shares) | 0 | 140,498 | |
Repurchases of capital stock | $ 0 | $ 7,995 | $ 39,993 |
Pension Benefit and Retiremen81
Pension Benefit and Retirement Health and Life Insurance Benefits (Additional Information) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Projected benefit obligation of plan with accumulated benefit obligation in excess of plan assets | $ 155,800 | $ 148,600 | ||
Accumulated benefit obligation of plan with accumulated benefit obligation in excess of plan assets | 155,800 | 148,600 | ||
Fair value of the plan assets of plan with accumulated benefit obligation in excess of plan assets | 147,100 | 140,100 | ||
Projected benefit obligation of plan with plan assets in excess of accumulated benefit obligation | 30,000 | 29,100 | ||
Accumulated benefit obligation of plan with plan assets in excess of accumulated benefit obligation | 30,000 | 29,100 | ||
Fair value of the plan assets of plan with plan assets in excess of accumulated benefit obligation | $ 33,000 | $ 31,700 | ||
Change in discount rate | 4.00% | |||
Health care cost trend rate annual change | (0.25%) | |||
Percentage point change in assumed health care cost trend rates | 1.00% | |||
Health care cost, employees age | 65 years | |||
Retirees of 65 Years Old or Younger | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate assumed for next fiscal year | 7.25% | 7.50% | ||
Ultimate health care cost trend rate | 4.50% | |||
Retirees of 65 Years Old or Older | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate assumed for next fiscal year | 7.25% | 7.50% | ||
Ultimate health care cost trend rate | 4.50% | |||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net loss to be recognized over next twelve months | $ 1,800 | |||
Historical return on plan assets over 20 years | 7.40% | |||
Expected long-term rate of return on plan assets | 4.90% | |||
Employer contributions | $ 372 | $ 344 | ||
Pension Benefits | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Plan asset allocations | 4.00% | 27.00% | ||
Pension Benefits | Debt Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Plan asset allocations | 96.00% | 73.00% | ||
Retirement Health and Life Insurance Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net loss to be recognized over next twelve months | $ 1,600 | |||
Employer contributions | $ 533 | $ 498 | ||
Bear Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Pension Plan, Required Employer Contribution | $ 400 | |||
Employer contributions | $ 300 |
Pension Benefit and Retiremen82
Pension Benefit and Retirement Health and Life Insurance Benefits (Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 177,696 | $ 182,359 | |
Service cost | 0 | 0 | |
Interest cost | 7,356 | 7,530 | $ 7,523 |
Actuarial (gain) loss | 9,601 | (3,621) | |
Benefit payments | (8,893) | (8,572) | |
Plan Amendment | 0 | 0 | |
Benefit obligation at end of year | 185,760 | 177,696 | 182,359 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of the year | 171,778 | 171,007 | |
Actual return on plan assets | 16,799 | 8,999 | |
Employer contributions | 372 | 344 | |
Benefit payments | (8,893) | (8,572) | |
Fair value of plan assets at the end of the year | 180,056 | 171,778 | 171,007 |
Unfunded status | (5,704) | (5,918) | |
Retirement Health and Life Insurance Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,504 | 2,722 | |
Service cost | 80 | 133 | 411 |
Interest cost | 71 | 75 | 216 |
Actuarial (gain) loss | 460 | 72 | |
Benefit payments | (533) | (498) | |
Plan Amendment | (545) | 0 | |
Benefit obligation at end of year | 2,037 | 2,504 | 2,722 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of the year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 533 | 498 | |
Benefit payments | (533) | (498) | |
Fair value of plan assets at the end of the year | 0 | 0 | $ 0 |
Unfunded status | $ (2,037) | $ (2,504) |
Pension Benefit and Retiremen83
Pension Benefit and Retirement Health and Life Insurance Benefits (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | $ 3,021 | $ 2,583 |
Current liabilities | (5) | 0 |
Noncurrent liabilities | (8,720) | (8,501) |
Net amount recognized at end of year | (5,704) | (5,918) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Net actuarial (loss) gain | (59,645) | (59,377) |
Prior service benefit | 0 | 0 |
Net amount recognized at end of year | (59,645) | (59,377) |
Retirement Health and Life Insurance Benefits | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (352) | (512) |
Noncurrent liabilities | (1,685) | (1,992) |
Net amount recognized at end of year | (2,037) | (2,504) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Net actuarial (loss) gain | 63 | 523 |
Prior service benefit | 2,821 | 3,878 |
Net amount recognized at end of year | $ 2,884 | $ 4,401 |
Pension Benefit and Retiremen84
Pension Benefit and Retirement Health and Life Insurance Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | |
Interest cost | 7,356 | 7,530 | $ 7,523 |
Expected return of plan assets | (9,221) | (10,808) | (11,148) |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of net loss | 1,755 | 1,784 | 1,690 |
Settlement charge | 0 | 0 | 57 |
Net periodic benefit cost (benefit) | (110) | (1,494) | (1,878) |
Retirement Health and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 80 | 133 | 411 |
Interest cost | 71 | 75 | 216 |
Expected return of plan assets | 0 | 0 | |
Amortization of prior service cost (credit) | (1,602) | (1,489) | (248) |
Amortization of net loss | 0 | (47) | (12) |
Settlement charge | 0 | 0 | |
Net periodic benefit cost (benefit) | $ (1,451) | $ (1,328) | $ 367 |
Pension Benefit and Retiremen85
Pension Benefit and Retirement Health and Life Insurance Benefits (Assumptions Used) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.70% | 4.25% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.70% | 4.25% |
Expected long-term rate of return on plan assets | 4.94% | 5.51% |
Retirement Health and Life Insurance Benefits | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.25% | 3.25% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.25% | 3.00% |
Expected long-term rate of return on plan assets | 0.00% | 0.00% |
Pension Benefit and Retiremen86
Pension Benefit and Retirement Health and Life Insurance Benefits (One-Percentage Point Change in Assumed Health Care Cost Trend Rates) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect on total service and interest cost - Increase | $ 9 |
Effect on total service and interest cost - Decrease | (9) |
Effect on other postretirement benefit obligations - Increase | 68 |
Effect on other postretirement benefit obligations - Decrease | $ (63) |
Pension Benefit and Retiremen87
Pension Benefit and Retirement Health and Life Insurance Benefits (Fair Value of Net Assets by Asset Category) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 180,056 | $ 171,778 | $ 171,007 |
Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 4,610 | 7,587 | |
Fixed income bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 162,934 | 111,070 | |
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 6,223 | 44,054 | |
Guaranteed deposit account | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 6,289 | $ 9,067 |
Pension Benefit and Retiremen88
Pension Benefit and Retirement Health and Life Insurance Benefits (Assets Carried at Fair Value by Level) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 180,056 | $ 171,778 | $ 171,007 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 6,223 | 44,054 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 167,544 | 118,657 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 6,289 | 9,067 | |
Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 4,610 | 7,587 | |
Pooled separate accounts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Pooled separate accounts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 4,610 | 7,587 | |
Pooled separate accounts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Fixed income bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 162,934 | 111,070 | |
Fixed income bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Fixed income bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 162,934 | 111,070 | |
Fixed income bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 6,223 | 44,054 | |
Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 6,223 | 44,054 | |
Mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Guaranteed deposit account | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 6,289 | 9,067 | |
Guaranteed deposit account | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Guaranteed deposit account | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Guaranteed deposit account | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 6,289 | $ 9,067 |
Pension Benefit and Retiremen89
Pension Benefit and Retirement Health and Life Insurance Benefits (Summary of Changes in Fair Value of Guaranteed Deposit Account's Level 3 Assets) (Details) - Pension Benefits - Guaranteed deposit account - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning of year | $ 9,067 |
Unrealized gains relating to instruments still held at the reporting date | 216 |
Purchases, sales, issuances and settlements (net) | (2,994) |
Balance at end of year | $ 6,289 |
Pension Benefit and Retiremen90
Pension Benefit and Retirement Health and Life Insurance Benefits (Estimated Future Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 9,261 |
2,019 | 9,335 |
2,020 | 9,423 |
2,021 | 9,644 |
2,022 | 9,956 |
2023-2027 | 52,676 |
Retirement Health and Life Insurance Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 352 |
2,019 | 316 |
2,020 | 267 |
2,021 | 174 |
2,022 | 128 |
2023-2027 | $ 795 |
Employee Savings and Investme91
Employee Savings and Investment Plans (Additional Information) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rogers Employee Savings and Investment Plan (RESIP) | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
IRS deferral limit | $ 18,000 | $ 18,000 | ||
Employee compensation subject to employer matching percent | 6.00% | |||
Employer contributions | $ 4,000,000 | $ 3,000,000 | $ 3,200,000 | |
Rogers Employee Savings and Investment Plan (RESIP) | 100% match | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee compensation subject to employer matching percent | 3.50% | |||
Rogers Employee Savings and Investment Plan (RESIP) | 100% match | 1% of compensation | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee compensation subject to employer matching percent | 1.00% | |||
Employer matching contribution percent | 100.00% | |||
Rogers Employee Savings and Investment Plan (RESIP) | 100% match | 3% of compensation | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee compensation subject to employer matching percent | 3.00% | |||
Rogers Employee Savings and Investment Plan (RESIP) | 50% match | 5% of compensation | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee compensation subject to employer matching percent | 5.00% | |||
Employer matching contribution percent | 50.00% | |||
DeWAL Industries, Inc 401k Profit Sharing Plan (DeWAL Plan) | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer matching contribution, percent of match | 100.00% |
Debt (Additional Information) (
Debt (Additional Information) (Detail) | Feb. 17, 2017USD ($) | Dec. 31, 2017USD ($)capital_lease_agreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2017USD ($) | Jun. 18, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Interest expense on outstanding debt | $ 5,200,000 | $ 3,100,000 | $ 3,500,000 | |||
Unused commitment fee | 600,000 | 400,000 | 300,000 | |||
Deferred debt issuance costs | 2,300,000 | |||||
Amortization expense, debt issue costs | $ 500,000 | 500,000 | 500,000 | |||
Leverage ratio, cash dividends, maximum | 2.75 | |||||
Capital lease obligation | $ 800,000 | 5,300,000 | ||||
Amortization expense related to the capital lease | 100,000 | 300,000 | 300,000 | |||
Capital leases accumulated depreciation | 100,000 | |||||
Interest expense on capital lease | $ 100,000 | 300,000 | $ 400,000 | |||
Number of capital lease agreements | capital_lease_agreement | 2 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | 1,200,000 | |||||
Amounts drawn on LOC | 0 | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Allowed dividend payments | $ 20,000,000 | |||||
Amended Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, additional borrowing capacity | $ 50,000,000 | |||||
Leverage ratio, maximum | 3.25 | |||||
Maximum leverage ratio option | 3.50 | |||||
Interest coverage ratio, minimum | 3 | |||||
Amended Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | 295,000,000 | |||||
Amended Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 0.375% | |||||
Unused commitment fee, percentage | 0.20% | |||||
Amended Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 0.75% | |||||
Unused commitment fee, percentage | 0.30% | |||||
Amended Credit Facility | Bank Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | $ 55,000,000 | |||||
Eurocurrency loans | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 1.375% | |||||
Eurocurrency loans | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 1.75% | |||||
Third Amended Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | $ 450,000,000 | |||||
Line of credit facility, additional borrowing capacity | $ 175,000,000 | |||||
Length of credit agreement (years) | 5 years | |||||
Repayments of lines of credit | $ 110,200,000 | |||||
Long-term Line of Credit | $ 131,000,000 | |||||
Federal Funds Rate | Amended Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 0.50% | |||||
London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 100.00% | |||||
London Interbank Offered Rate (LIBOR) | Third Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread over variable rate | 1.00% | |||||
Interest rate swap | Third Amended Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, amount of hedged item | $ 75,000,000 | |||||
Germany | ||||||
Debt Instrument [Line Items] | ||||||
Capital lease obligation | $ 5,700,000 | 5,300,000 | ||||
Amortization expense related to the capital lease | 300,000 | |||||
Capital leases accumulated depreciation | $ 3,300,000 | $ 3,400,000 |
Income Taxes (Consolidated Inco
Income Taxes (Consolidated Income (Loss) from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 39,751 | $ 10,888 | $ 14,832 |
International | 93,174 | 71,392 | 51,341 |
Total | $ 132,925 | $ 82,280 | $ 66,173 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit) in the Consolidated Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
Domestic | $ 7,535 | $ 2,078 | $ 993 |
International | 27,418 | 24,537 | 15,192 |
Total | 34,953 | 26,615 | 16,185 |
Deferred | |||
Domestic | 21,936 | 3,376 | 4,272 |
International | (4,423) | 4,006 | (604) |
Total | 17,513 | 7,382 | 3,668 |
Domestic | 29,471 | 5,454 | 5,265 |
International | 22,995 | 28,543 | 14,588 |
Total | $ 52,466 | $ 33,997 | $ 19,853 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | |||||
Accrued employee benefits and compensation | $ 8,410 | $ 9,899 | |||
Postretirement benefit obligations | 0 | 3,335 | |||
Tax loss and credit carryforwards | 7,905 | 7,146 | |||
Reserves and accruals | 4,699 | 6,361 | |||
Other | 2,977 | 2,792 | |||
Total deferred tax assets | 23,991 | 29,533 | |||
Less deferred tax asset valuation allowance | (8,754) | (6,388) | $ (6,202) | $ (7,691) | |
Deferred tax liabilities, undistributed foreign earnings | $ 6,100 | ||||
Total deferred tax assets, net of valuation allowance | 15,237 | 23,145 | |||
Deferred tax liabilities | |||||
Depreciation and amortization | 14,300 | 14,965 | |||
Postretirement benefit obligations | 2,311 | 0 | |||
Unremitted earnings | 3,100 | 7,239 | |||
Other | 224 | 190 | |||
Total deferred tax liabilities | 19,935 | 22,394 | |||
Net deferred tax asset | $ (4,698) | $ 751 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2014 |
Income Tax Examination [Line Items] | |||||||
Tax loss and credit carryforwards | $ 7,905 | $ 7,146 | |||||
Deferred tax asset valuation allowance | 8,754 | $ 6,388 | $ 6,202 | $ 7,691 | |||
Tax credit carryforwards, research | 2,300 | ||||||
Tax credit carryforwards, AMT | $ 500 | ||||||
Effective income tax rate | 39.50% | 41.30% | |||||
Effective income tax rate, excluding the impact of U.S. tax reform | 29.20% | ||||||
Deferred tax liabilities, undistributed foreign earnings | $ 6,100 | ||||||
Current foreign tax expense (benefit) | $ 27,418 | $ 24,537 | 15,192 | ||||
Statutory tax rate | 21.00% | 35.00% | |||||
Provisional income tax expense (benefit) | 13,700 | ||||||
Change in tax rate, deferred tax asset, provisional income tax expense | 1,700 | ||||||
Transition tax for accumulated foreign earnings, provisional liability | 12,000 | ||||||
Undistributed earnings of foreign subsidiaries | 314,800 | ||||||
Unrecognized tax benefits that would impact effective tax rate | 10,600 | ||||||
Unrecognized tax benefits that would result in adjustments to other tax accounts | 4,000 | ||||||
Unrecognized tax benefits, income tax penalties and interest accrued | 600 | 400 | |||||
Income tax examination, interest expense | 200 | 900 | $ 100 | ||||
Minimum amount of unrecognized tax benefits that could be recognized over next 12 months | 8,100 | ||||||
Arizona | |||||||
Income Tax Examination [Line Items] | |||||||
Deferred tax asset valuation allowance | 7,600 | ||||||
State and Local Jurisdiction | |||||||
Income Tax Examination [Line Items] | |||||||
Deferred tax asset valuation allowance | 8,754 | $ 6,388 | |||||
Minimum | |||||||
Income Tax Examination [Line Items] | |||||||
State operating loss carryforwards | 400 | ||||||
Minimum | Arizona | |||||||
Income Tax Examination [Line Items] | |||||||
Tax loss and credit carryforwards | 8,600 | ||||||
Maximum | |||||||
Income Tax Examination [Line Items] | |||||||
State operating loss carryforwards | 6,600 | ||||||
China | |||||||
Income Tax Examination [Line Items] | |||||||
Current foreign tax expense (benefit) | $ 6,300 |
Income Taxes (Income Tax Expe97
Income Taxes (Income Tax Expense Difference) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at Federal statutory income tax rate | $ 46,529 | $ 28,798 | $ 23,161 |
International tax rate differential | (9,603) | (2,260) | (4,792) |
Foreign source income, net of tax credits (excluding U.S. tax reform) | 1,087 | 1,215 | 2,449 |
State tax, net of federal | 279 | (200) | (416) |
Unrecognized tax benefits | 2,874 | (5,555) | 148 |
U.S. tax reform | 13,683 | 0 | 0 |
Equity compensation excess tax deductions | (3,867) | 0 | 0 |
General business credits | (1,080) | (1,125) | (908) |
Acquisition related expenses | 0 | 0 | 453 |
Distribution related foreign taxes | 2,173 | 12,433 | 0 |
Valuation allowance change (excluding U.S. tax reform) | 1,393 | 171 | (1,489) |
Other | (1,002) | 520 | 1,247 |
Total | $ 52,466 | $ 33,997 | $ 19,853 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits, Excluding Potential Interest and Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 5,883 | $ 10,571 |
Gross increases - current period tax positions | 7,056 | 520 |
Gross increases - tax positions in prior periods | 3,243 | 0 |
Gross decreases - tax positions in prior periods | (375) | (498) |
Foreign currency exchange | 467 | (137) |
Lapse of statute of limitations | (1,709) | (4,573) |
Ending balance | $ 14,565 | $ 5,883 |
Shareholders' Equity and Equi99
Shareholders' Equity and Equity Compensation (Additional Information) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)offering_periods | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Lower limit of exercise price range | 50.00% | ||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Equity compensation expense | $ 11,818,000 | $ 11,275,000 | $ 9,643,000 |
Total intrinsic value of options exercised in period | 6,000,000 | 2,100,000 | |
Cash received from exercise of options exercised | 3,100,000 | 4,100,000 | |
Total grant-date fair value of stock options vested | 200,000 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity compensation expense | $ 500,000 | 500,000 | 500,000 |
Employee stock purchase plan number of offering periods | offering_periods | 2 | ||
Employee stock purchase plan length of offering periods | 6 months | ||
Discount from market price percentage | 15.00% | ||
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Nonvested awards, total compensation cost not yet recognized | $ 0 | ||
Equity compensation expense | 200,000 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested awards, total compensation cost not yet recognized | 5,900,000 | ||
Equity compensation expense | $ 4,700,000 | 4,600,000 | 3,200,000 |
Expected dividend yield | 0.00% | ||
Future compensation cost, period of recognition | 1 year 4 months 24 days | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance-based restricted stock award percentage target | 200.00% | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance-based restricted stock award percentage target | 0.00% | ||
Time Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested awards, total compensation cost not yet recognized | $ 7,300,000 | ||
Equity compensation expense | $ 5,700,000 | 5,600,000 | 5,000,000 |
Future compensation cost, period of recognition | 1 year 5 months 24 days | ||
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity compensation expense | $ 1,000,000 | $ 700,000 | $ 800,000 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Vesting on the second anniversary after the grant date | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting percentage | 33.33% | ||
Vesting on the third anniversary after the grant date | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting percentage | 33.33% | ||
Vesting on the fourth anniversary after the grant date | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting percentage | 33.34% |
Shareholders' Equity and Equ100
Shareholders' Equity and Equity Compensation (Shares of Capital Stock Reserved) (Details) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 1,763,635 | 1,997,257 |
Rogers Corporation Stock acquisition program (shares) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 120,883 | 120,883 |
Stock options and restricted stock (shares) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 545,018 | 659,302 |
Rogers Corporation 2009 Long-Term Equity Compensation Plan (shares) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 793,603 | 892,163 |
Rogers Employee and Investment Plan (shares) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 169,044 | 169,044 |
Rogers Corporation Global Stock Ownership Plan for Employees (shares) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 117,987 | 133,113 |
Deferred compensation to be paid in stock, including deferred stock units (shares) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares reserved for future issuance (in shares) | 17,100 | 22,752 |
Shareholders' Equity and Equ101
Shareholders' Equity and Equity Compensation (Summary of Activity Under Stock Option Plans) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options Outstanding | |||
Options outstanding at beginning of period (in shares) | 116,575 | 212,038 | 393,347 |
Options exercised (in shares) | (83,292) | (95,113) | (178,759) |
Options forfeited (in shares) | 0 | (350) | (2,550) |
Options outstanding at end of period (in shares) | 33,283 | 116,575 | 212,038 |
Options exercisable at end of period (in shares) | 33,283 | 116,575 | 204,394 |
Options vested at the end of the period (in shares) | 33,283 | ||
Weighted- Average Exercise Price Per Share | |||
Weighted Average Exercise Price Per Share, Outstanding at period start (in dollars per share) | $ 37.76 | $ 40.47 | $ 40.72 |
Weighted Average Exercise Price Per Share, Options exercised (in dollars per share) | 37.04 | 43.56 | 40.90 |
Weighted Average Exercise Price Per Share, Options forfeited (in dollars per share) | 0 | 44.32 | 40.09 |
Weighted Average Exercise Price Per Share, Outstanding at period end (in dollars per share) | 36.40 | $ 37.76 | $ 40.47 |
Weighted Average Exercise Price Per Share, Options exercisable at December 31, 2017 | 36.40 | ||
Weighted Average Exercise Price Per Share, Options vested at December 31, 2017 or expected to vest | $ 36.40 | ||
Weighted-Average Remaining Contractual Life in Years | |||
Weighted-Average Remaining Contractual Life in Years, Options outstanding | 2 years 2 months 12 days | 3 years 2 months 12 days | |
Weighted-Average Remaining Contractual Life in Years, Options exercisable at December 31, 2017 | 2 years 2 months 12 days | ||
Weighted-Average Remaining Contractual Life in Years, Options vested at December 31, 2017 or expected to vest | 2 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Options outstanding | $ 4,177,655 | $ 4,552,580 | |
Aggregate Intrinsic Value, Options exercisable at December 31, 2017 | 4,177,655 | ||
Aggregate Intrinsic Value, Options vested at December 31, 2017 or expected to vest | $ 4,177,655 |
Shareholders' Equity and Equ102
Shareholders' Equity and Equity Compensation (Monte Carlo Assumptions Used) (Details) - Performance Shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 33.60% | 29.60% |
Expected term (in years) | 3 years | 3 years |
Risk-free interest rate | 1.38% | 0.93% |
Shareholders' Equity and Equ103
Shareholders' Equity and Equity Compensation (Performance Based Restricted Stock Awards) (Detail) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Awards Outstanding | |||
Non-vested awards outstanding, beginning balance (in shares) | 151,769 | 107,229 | 92,437 |
Awards granted (in shares) | 56,147 | 84,443 | 51,475 |
Stock issued (in shares) | (34,442) | (25,397) | (20,910) |
Awards forfeited or expired (in shares) | (4,272) | (14,506) | (15,773) |
Non-vested awards outstanding, ending balance (in shares) | 169,202 | 151,769 | 107,229 |
Weighted- Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Outstanding at period beginning (in dollars per share) | $ 89.72 | $ 66.13 | $ 52.75 |
Weighted-Average Grant Date Fair Value, Awards granted (in dollars per share) | 110.77 | 69.01 | 78.01 |
Weighted-Average Grant Date Fair Value, Stock issued (in dollars per share) | 86.59 | 72.68 | 41.27 |
Weighted-Average Grant Date Fair Value, Awards forfeited or expired (in dollars per share) | 99.35 | 104.83 | 59.45 |
Weighted-Average Grant Date Fair Value, Outstanding at period end (in dollars per share) | $ 97.16 | $ 89.72 | $ 66.13 |
Shareholders' Equity and Equ104
Shareholders' Equity and Equity Compensation (Time Based Restricted Stock Awards) (Detail) - Time Based Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Awards Outstanding | |||
Non-vested awards outstanding, beginning balance (in shares) | 239,189 | 208,318 | 238,386 |
Awards granted (in shares) | 80,535 | 118,660 | 75,160 |
Stock issued (in shares) | (140,208) | (60,326) | (93,813) |
Awards forfeited or expired (in shares) | (6,185) | (27,463) | (11,415) |
Non-vested awards outstanding, ending balance (in shares) | 173,331 | 239,189 | 208,318 |
Weighted- Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Outstanding at period beginning (in dollars per share) | $ 57.71 | $ 64.27 | $ 53.80 |
Weighted-Average Grant Date Fair Value, Awards granted (in dollars per share) | 83.17 | 51.70 | 77.15 |
Weighted-Average Grant Date Fair Value, Stock issued (in dollars per share) | 58.18 | 64.03 | 48.35 |
Weighted-Average Grant Date Fair Value, Awards forfeited or expired (in dollars per share) | 60.70 | 64.60 | 61.32 |
Weighted-Average Grant Date Fair Value, Outstanding at period end (in dollars per share) | $ 69.10 | $ 57.71 | $ 64.27 |
Shareholders' Equity and Equ105
Shareholders' Equity and Equity Compensation (Deferred Stock Units) (Detail) - Deferred Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Awards Outstanding | |||
Non-vested awards outstanding, beginning balance (in shares) | 11,900 | 23,950 | 30,150 |
Awards granted (in shares) | 9,250 | 11,900 | 10,300 |
Stock issued (in shares) | (11,900) | (23,950) | (16,500) |
Non-vested awards outstanding, ending balance (in shares) | 9,250 | 11,900 | 23,950 |
Weighted- Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Outstanding at period beginning (in dollars per share) | $ 58.82 | $ 27.22 | $ 24.43 |
Weighted-Average Grant Date Fair Value, Awards granted (in dollars per share) | 109.48 | 58.82 | 73.79 |
Weighted-Average Grant Date Fair Value, Stock issued (in dollars per share) | 109.36 | 52.69 | 51.20 |
Weighted-Average Grant Date Fair Value, Outstanding at period end (in dollars per share) | $ 109.48 | $ 58.82 | $ 27.22 |
Commitments and Contingencie106
Commitments and Contingencies (Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lease Expense | |||
Operating leases | $ 3,819 | $ 3,567 | $ 3,531 |
Capital lease | $ 608 | $ 564 | $ 667 |
Minimum | |||
Lease Expense | |||
Operating lease period | 1 year | ||
Maximum | |||
Lease Expense | |||
Operating lease period | 5 years |
Commitments and Contingencie107
Commitments and Contingencies (Operating Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 756 |
2,019 | 756 |
2,020 | 737 |
2,021 | 4,669 |
2,022 | 76 |
Thereafter | 0 |
Total | 6,994 |
Less: Interest | (542) |
Present Value of Net Future Minimum Lease Payments | $ 6,452 |
Commitments and Contingencie108
Commitments and Contingencies (Capital Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 3,833 |
2,019 | 3,152 |
2,020 | 2,461 |
2,021 | 2,022 |
2,022 | 1,527 |
Thereafter | 474 |
Total | $ 13,469 |
Commitments and Contingencie109
Commitments and Contingencies (Additional Information) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)claimslegal_matter | Dec. 31, 2016USD ($)claims | Dec. 31, 2015USD ($)claims | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | ||||
Estimated total cleanup costs, accrual | $ 0.4 | |||
Number of pending claims | claims | 687 | 605 | 489 | |
Number of claims dismissed | claims | 258 | 155 | ||
Number of claims settled | claims | 22 | 17 | ||
Claims settlements amount | $ 5 | $ 4.4 | ||
Asbestos-related liabilities, estimated liability | $ 76.2 | $ 52 | ||
Projection period (years) | 40 years | 10 years | ||
Environmental remediation expense (income) | $ 3.4 | $ 0.3 | $ 0.3 | |
Connecticut Voluntary Corrective Action Program (VCAP) | ||||
Loss Contingencies [Line Items] | ||||
Estimated total cleanup costs, accrual | 1.7 | $ 3.2 | ||
Decrease in loss contingency accrual | $ 0.9 | |||
Superfund Sites Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Number of pending claims | legal_matter | 1 | |||
Estimated total cleanup costs, cost sharing percentage | 2.00% | |||
Superfund Sites Proceedings | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, not accrued, best estimate | $ 18.8 | |||
Superfund Sites Proceedings | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, not accrued, best estimate | 29.6 | |||
PCB Contamination Proceedings | ||||
Loss Contingencies [Line Items] | ||||
PCB contamination of the building and pond, liability recording during the period | 0.7 | |||
Remediation and monitoring costs incurred since inception related to the PCB soil and building contamination | 2.3 | |||
PCB Contamination Proceedings | Building | ||||
Loss Contingencies [Line Items] | ||||
Remediation and monitoring costs incurred since inception related to the PCB soil and building contamination | $ 0.5 | |||
PCB Contamination Proceedings | Pond | ||||
Loss Contingencies [Line Items] | ||||
Estimated total cleanup costs, accrual | $ 0.2 |
Commitments and Contingencie110
Commitments and Contingencies (Claims for Asbestos) (Details) - claims | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Claims outstanding at beginning of year | 605 | 489 |
New claims filed | 362 | 288 |
Pending claims concluded | (280) | (172) |
Claims outstanding at end of year | 687 | 605 |
Commitments and Contingencie111
Commitments and Contingencies (Schedule to Total Estimated of Liability for Asbestos) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Asbestos-related liabilities, estimated liability | $ 76.2 | $ 52 |
Asbestos-related liabilities, estimated insurance recovery | $ 69.2 | $ 48.4 |
Operating Segments and Geogr112
Operating Segments and Geographic Information (Narrative) (Details) | Dec. 31, 2017joint_venture |
Segment Reporting Information [Line Items] | |
Number of joint ventures that are 50% owned | 2 |
Rogers INOAC Corporation | |
Segment Reporting Information [Line Items] | |
Ownership interest in joint venture | 50.00% |
Rogers I N O A C Suzhou Corporation | |
Segment Reporting Information [Line Items] | |
Ownership interest in joint venture | 50.00% |
Operating Segments and Geogr113
Operating Segments and Geographic Information (Information About Reportable Segments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 209,008 | $ 206,783 | $ 201,424 | $ 203,828 | $ 173,000 | $ 165,259 | $ 157,489 | $ 160,566 | $ 821,043 | $ 656,314 | $ 641,443 |
Operating income | 130,779 | 83,852 | 76,255 | ||||||||
Total assets | 1,125,134 | 1,056,500 | 1,125,134 | 1,056,500 | 930,355 | ||||||
Capital expenditures | 27,215 | 18,136 | 24,837 | ||||||||
Depreciation & amortization | 44,099 | 37,847 | 34,054 | ||||||||
Investment in unconsolidated joint ventures | 18,324 | 16,183 | 18,324 | 16,183 | 15,348 | ||||||
Equity income in unconsolidated joint ventures | 4,898 | 4,146 | 2,890 | ||||||||
Advanced Connectivity Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 301,092 | 277,787 | 267,630 | ||||||||
Operating income | 56,186 | 43,965 | 45,115 | ||||||||
Total assets | 353,786 | 361,746 | 353,786 | 361,746 | 315,358 | ||||||
Capital expenditures | 9,900 | 7,569 | 15,532 | ||||||||
Depreciation & amortization | 16,351 | 15,654 | 15,403 | ||||||||
Investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | 0 | ||||||
Equity income in unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Elastomeric Material Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 312,661 | 203,181 | 180,898 | ||||||||
Operating income | 51,404 | 26,593 | 19,979 | ||||||||
Total assets | 489,456 | 421,011 | 489,456 | 421,011 | 264,982 | ||||||
Capital expenditures | 7,563 | 4,051 | 4,103 | ||||||||
Depreciation & amortization | 16,270 | 10,141 | 9,280 | ||||||||
Investment in unconsolidated joint ventures | 16,183 | 16,183 | 15,348 | ||||||||
Equity income in unconsolidated joint ventures | 4,898 | 4,146 | 2,890 | ||||||||
Power Electronics Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 184,954 | 152,367 | 150,288 | ||||||||
Operating income | 16,036 | 5,965 | 3,750 | ||||||||
Total assets | 261,034 | 247,187 | 261,034 | 247,187 | 320,755 | ||||||
Capital expenditures | 9,238 | 6,009 | 4,185 | ||||||||
Depreciation & amortization | 10,572 | 11,208 | 7,855 | ||||||||
Investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | 0 | ||||||
Equity income in unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 22,336 | 22,979 | 42,627 | ||||||||
Operating income | 7,153 | 7,329 | 7,411 | ||||||||
Total assets | 20,858 | 26,556 | 20,858 | 26,556 | 29,260 | ||||||
Capital expenditures | 514 | 507 | 1,017 | ||||||||
Depreciation & amortization | 906 | 844 | 1,516 | ||||||||
Investment in unconsolidated joint ventures | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Equity income in unconsolidated joint ventures | $ 0 | $ 0 | $ 0 |
Operating Segments and Geogr114
Operating Segments and Geographic Information (Reconciliation to Consolidated Statements of Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Operating income | $ 130,779 | $ 83,852 | $ 76,255 |
Equity income in unconsolidated joint ventures | 4,898 | 4,146 | 2,890 |
Other income (expense), net | 3,379 | (1,788) | (8,492) |
Interest expense, net | (6,131) | (3,930) | (4,480) |
Income before income taxes | $ 132,925 | $ 82,280 | $ 66,173 |
Operating Segments and Geogr115
Operating Segments and Geographic Information (Operations by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 209,008 | $ 206,783 | $ 201,424 | $ 203,828 | $ 173,000 | $ 165,259 | $ 157,489 | $ 160,566 | $ 821,043 | $ 656,314 | $ 641,443 |
Long-Lived Assets | 576,996 | 522,894 | 576,996 | 522,894 | 429,133 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 225,621 | 158,136 | 164,478 | ||||||||
Long-Lived Assets | 370,964 | 326,199 | 370,964 | 326,199 | 218,439 | ||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 272,184 | 236,961 | 227,993 | ||||||||
Long-Lived Assets | 57,404 | 62,728 | 57,404 | 62,728 | 65,994 | ||||||
Germany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 89,203 | 79,480 | 76,569 | ||||||||
Long-Lived Assets | 114,497 | 101,725 | 114,497 | 101,725 | 110,240 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 234,035 | 181,737 | 172,403 | ||||||||
Long-Lived Assets | $ 34,131 | $ 32,242 | $ 34,131 | $ 32,242 | $ 34,460 |
Restructuring and Impairment116
Restructuring and Impairment Charges (Additional Information) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 397 | $ 700 | |||
Impairment of assets/investments | $ 807 | 0 | $ 150 | ||
Number of operating segments | Segment | 3 | ||||
Restructuring and asset impairment charges | 3,567 | $ 734 | $ 0 | ||
Arizona | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 2,800 | ||||
Brightvolt, Inc. | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets/investments | $ 300 | ||||
ROLINX | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets/investments | $ 500 |
Restructuring and Impairment117
Restructuring and Impairment Charges (Schedule of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2016 | $ 470 | ||
Provisions | $ 397 | $ 700 | |
Payments | (684) | ||
Balance at December 31, 2017 | $ 183 | $ 183 | $ 470 |
Restructuring and Impairment118
Restructuring and Impairment Charges (Restructuring and Impairment Charges) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Impairment | ||||
Restructuring charges | $ 397 | $ 700 | ||
Total Charges for Restructuring and Impairment | $ 3,567 | 734 | $ 0 | |
Advanced Connectivity Solutions | Employee Severance | ||||
Restructuring and Impairment | ||||
Restructuring charges | 1,305 | 375 | ||
Advanced Connectivity Solutions | Asset Impairments | ||||
Restructuring and Impairment | ||||
Allocated asset impairment charges | 161 | 0 | ||
Elastomeric Material Solutions | Employee Severance | ||||
Restructuring and Impairment | ||||
Restructuring charges | 834 | 176 | ||
Elastomeric Material Solutions | Asset Impairments | ||||
Restructuring and Impairment | ||||
Allocated asset impairment charges | 103 | 0 | ||
Power Electronics Solutions | Employee Severance | ||||
Restructuring and Impairment | ||||
Restructuring charges | 621 | 183 | ||
Power Electronics Solutions | Asset Impairments | ||||
Restructuring and Impairment | ||||
Allocated asset impairment charges | $ 543 | $ 0 |
Quarterly Results of Operati119
Quarterly Results of Operations (UNAUDITED) (Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 209,008 | $ 206,783 | $ 201,424 | $ 203,828 | $ 173,000 | $ 165,259 | $ 157,489 | $ 160,566 | $ 821,043 | $ 656,314 | $ 641,443 |
Gross margin | 75,491 | 82,188 | 80,546 | 80,350 | 66,849 | 61,929 | 60,199 | 60,508 | $ 318,575 | $ 249,485 | $ 235,362 |
Income (loss) from continuing operations | $ 6,999 | $ 25,532 | $ 20,896 | $ 27,032 | $ 11,913 | $ 16,065 | $ 5,377 | $ 14,928 | |||
Net income per share: | |||||||||||
Basic income from continuing operations (in dollars per share) | $ 0.38 | $ 1.40 | $ 1.15 | $ 1.50 | $ 0.66 | $ 0.89 | $ 0.30 | $ 0.83 | |||
Diluted income from continuing operations (in dollars per share) | $ 0.37 | $ 1.37 | $ 1.13 | $ 1.47 | $ 0.65 | $ 0.88 | $ 0.29 | $ 0.82 |
Recent Accounting Standards - N
Recent Accounting Standards - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in tax rate, deferred tax asset, provisional income tax expense | $ 1,700 | ||
Transition tax for accumulated foreign earnings, provisional liability | 12,000 | ||
Increase to retained earnings | 684,540 | $ 591,349 | |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax asset, adjustment | $ 12,700 | ||
Forecast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase to retained earnings | $ 4,000 | ||
Interest rate swap | Accounting Standards Update 2017-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect on retained earnings | $ 200 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Millions | Feb. 26, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Subsequent Event [Line Items] | |||
Property plant and equipment, held for sale | $ 0.5 | $ 0.9 | |
Arizona | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Sales price | $ (1.1) |
SCHEDULE II Valuation and Qu122
SCHEDULE II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts | |||
Balance at Beginning of Period | $ 1,952 | $ 695 | $ 476 |
Charged to (Reduction of) Costs and Expenses | (275) | 1,321 | 1,085 |
Taken Against Allowance | (152) | (64) | (866) |
Other (Deductions) Recoveries | 0 | 0 | 0 |
Balance at End of Period | 1,525 | 1,952 | 695 |
Valuation on Allowance for Deferred Tax Assets | |||
Balance at Beginning of Period | 6,388 | 6,202 | 7,691 |
Charged to (Reduction of) Costs and Expenses | 2,366 | 186 | (1,484) |
Taken Against Allowance | 0 | 0 | 0 |
Other (Deductions) Recoveries | 0 | 0 | (5) |
Balance at End of Period | $ 8,754 | $ 6,388 | $ 6,202 |