BUSINESS SEGMENT 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” reportable 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^® and eSORBA^®.

In November 2016, we acquired DeWAL which is being integrated into our EMS segment. DeWAL is a leading manufacturer of polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes and specialty products for the industrial, aerospace, automotive, and electronics markets.

We have two 50% owned joint ventures that extend and complement our worldwide business in Elastomeric Material Solutions. 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 business, 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. Arlon operations related to the manufacture of specialty polyimide, epoxy-based laminates and bonding materials were included in our Other segment until we divested those operations in December 2015.

The following table sets forth the information about our reportable segments for the periods indicated, with inter-segment sales eliminated:



(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
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
2014
Net sales	$	240,864	$	173,671	$	171,832	$	24,544	$	610,911
Operating income	$	44,007	$	23,350	$	5,654	$	8,230	$	81,241
Total assets	$	217,173	$	221,013	$	377,181	$	25,068	$	840,435
Capital expenditures	$	14,290	$	6,197	$	7,489	$	779	$	28,755
Depreciation & amortization	$	9,575	$	6,561	$	9,332	$	800	$	26,268
Investment in unconsolidated joint ventures	$	—	$	17,214	$	—	$	—	$	17,214
Equity income in unconsolidated joint ventures	$	—	$	4,123	$	—	$	—	$	4,123

The following table sets forth the operating income reconciliation to the consolidated statements of operations for the periods indicated:



(Dollars in thousands)	2016			2015			2014
Operating income	$	83,852		$	76,255		$	81,241
Equity income in unconsolidated joint ventures	4,146			2,890			4,123
Other income (expense), net	(1,788		)	(8,492		)	(1,194		)
Interest income (expense), net	(3,930		)	(4,480		)	(2,946		)
Income before income taxes	$	82,280		$	66,173		$	81,224

Information relating to our operations by geographic area was as follows:



	Net Sales ⁽¹⁾						Long-lived Assets ⁽²⁾
(Dollars in thousands)	2016		2015		2014		2016		2015		2014
United States	$	158,136	$	164,478	$	124,305	$	326,199	$	218,439	$	70,728
China	236,961		227,993		236,488		62,728		65,994		49,794
Germany	79,480		76,569		93,478		101,725		110,240		129,702
Other	181,737		172,403		156,640		32,242		34,460		36,999
Total	$	656,314	$	641,443	$	610,911	$	522,894	$	429,133	$	287,223


⁽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 intangibles and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed.