10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-K

_______________________________

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number 1-4347

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ROGERS CORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

Massachusetts	06-0513860
(State or other jurisdiction of incorporation or organization)	(I. R. S. Employer Identification No.)

2225 W. Chandler Blvd., Chandler, Arizona 85224-6155

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (480) 917-6000

Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading Symbol(s)	Name of each exchange on which registered
Common Stock,	par value $1.00 per share	ROG	New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None

_______________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes ☒    No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes ☐    No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)    Yes ☐    No ☒

The aggregate market value of the voting common equity held by non-affiliates as of June 30, 2020, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $2,301,662,539. Rogers has no non-voting common equity. The number of shares outstanding of common stock as of February 12, 2021 was 18,699,801.

Documents Incorporated by Reference:

Portions of Rogers’ Definitive Proxy Statement for its 2020 Annual Meeting of Shareholders, currently scheduled for May 5, 2021, are incorporated by reference into Part III of this Form 10-K.

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ROGERS CORPORATION

FORM 10-K

December 31, 2020

TABLE OF CONTENTS
Part I
Item 1.	Business	4
Item 1A.	Risk Factors	10
Item 1B.	Unresolved Staff Comments	15
Item 2.	Properties	16
Item 3.	Legal Proceedings	16
Item 4.	Mine Safety Disclosures	17
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	18
Item 6.	Selected Financial Data	19
Item 7.	Management’s Discussion and Analysis of Results of Operations and Financial Position	20
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 8.	Financial Statements and Supplementary Data	33
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	73
Item 9A.	Controls and Procedures	73
Item 9B.	Other Information	73
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	74
Item 11.	Executive Compensation	74
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	74
Item 13.	Certain Relationships and Related Transactions, and Director Independence	75
Item 14.	Principal Accountant Fees and Services	75
Part IV
Item 15.	Exhibits, Financial Statement Schedules	75
Item 16.	Form 10-K Summary	77
	Signatures	78

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Part I

Item 1. Business

As used herein, the “Company,” “Rogers,” “we,” “us,” “our” and similar terms include Rogers Corporation and its subsidiaries, unless the context indicates otherwise.

Forward-Looking Statements

This Annual Report on Form 10-K includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Such statements are generally accompanied by words such as “anticipate,” “assume,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “seek,” “target” or similar expressions that convey uncertainty as to future events or outcomes. Forward-looking statements are based on assumptions and beliefs that we believe to be reasonable; however, assumed facts almost always vary from actual results, and the differences between assumed facts and actual results could be material depending upon the circumstances. Where we express an expectation or belief as to future results, that expectation or belief is expressed in good faith and based on assumptions believed to have a reasonable basis. We cannot assure you, however, that the stated expectation or belief will occur or be achieved or accomplished. Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:

•the duration and impacts of the novel coronavirus (COVID-19) global pandemic and efforts to contain its transmission and distribute vaccines, including the effect of these factors on our business, suppliers, customers, end users and economic conditions generally;

•failure to capitalize on, volatility within, or other adverse changes with respect to the Company’s growth drivers, including advanced mobility and advanced connectivity, such as delays in adoption or implementation of new technologies;

•uncertain business, economic and political conditions in the United States (U.S.) and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations;

•the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations and the imposition of tariffs and other trade restrictions, including trade restrictions on Huawei Technologies Co., Ltd. (Huawei);

•fluctuations in foreign currency exchange rates;

•our ability to develop innovative products and the extent to which they are incorporated into end-user products and systems;

•the extent to which end-user products and systems incorporating our products achieve commercial success;

•the ability of our sole or limited source suppliers to deliver certain key raw materials, including commodities, to us in a timely and cost-effective manner;

•intense global competition affecting both our existing products and products currently under development;

•business interruptions due to catastrophes or other similar events, such as natural disasters, war, terrorism or public health crises;

•failure to realize, or delays in the realization of, anticipated benefits of acquisitions and divestitures due to, among other things, the existence of unknown liabilities or difficulty integrating acquired businesses;

•our ability to attract and retain management and skilled technical personnel;

•our ability to protect our proprietary technology from infringement by third parties and/or allegations that our technology infringes third party rights;

•changes in effective tax rates or tax laws and regulations in the jurisdictions in which we operate;

•failure to comply with financial and restrictive covenants in our credit agreement or restrictions on our operational and financial flexibility due to such covenants;

•the outcome of ongoing and future litigation, including our asbestos-related product liability litigation;

•changes in environmental laws and regulations applicable to our business; and

•disruptions in, or breaches of, our information technology systems.

Our forward-looking statements are expressly qualified by these cautionary statements, which you should consider carefully, along with the risks discussed under the headings “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Results of Operations and Financial Position” and elsewhere in this report, any of which could cause actual results to differ materially from historical results or anticipated results. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

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Company Background and Strategy

Rogers Corporation designs, develops, manufactures and sells high-performance and high-reliability engineered materials and components to meet our customers’ demanding challenges. We operate three strategic operating segments: Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS) and Power Electronics Solutions (PES). The remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We have a history of innovation and have established Innovation Centers for our research and development (R&D) activities in Chandler, Arizona; Burlington, Massachusetts; Eschenbach, Germany; and Suzhou, China. We are headquartered in Chandler, Arizona.

Our growth strategy is based upon the following principles: (1) market-driven organization, (2) innovation leadership, (3) synergistic mergers and acquisitions, and (4) operational excellence. As a market-driven organization, we are focused on growth drivers, including advanced mobility and advanced connectivity. More specifically, in addition to the impact COVID-19 discussed below, the key medium- to long-term trends currently affecting our business include the increasing use of advanced driver assistance systems (ADAS) and increasing electrification of vehicles, including electric and hybrid electric vehicles (EV/HEV), in the automotive industry and the growth of 5G smartphones in the portable electronics industry. In addition to our focus on advanced mobility and advanced connectivity in the automotive, portable electronics and telecommunications industries, we sell into a variety of other markets including general industrial, aerospace and defense, mass transit, renewable energy and connected devices.

Our sales and marketing approach is based on addressing these trends, while our strategy focuses on factors for success as a manufacturer of engineered materials and components: performance, quality, service, cost, efficiency, innovation and technology. We have expanded our capabilities through organic investment and acquisitions and strive to ensure high quality solutions for our customers. We continue to review and re-align our manufacturing and engineering footprint in an effort to maintain a leading competitive position globally. We have established or expanded our capabilities in various locations in support of our customers’ growth initiatives.

We seek to enhance our operational and financial performance by investing in research and development, manufacturing and materials efficiencies, and new product initiatives that respond to the needs of our customers. We strive to evaluate operational and strategic alternatives to improve our business structure and align our business with the changing needs of our customers and major industry trends affecting our business.

COVID-19 Update

The global COVID-19 pandemic has affected and continues to affect Rogers’ business and operations, although to a lesser extent than the first half of 2020. In response to the outbreak, Rogers prioritized the safety and well-being of its employees—including implementing social distancing initiatives in its facilities, providing remote working arrangements for certain employees, expanding personal protective equipment usage, enhancing plant hygiene processes, and extending employee benefits, which increased our expenses in 2020—while at the same time taking actions to preserve business continuity. Our non-manufacturing employees transitioned seamlessly to remote working arrangements and are maintaining effective collaboration, both internally and with our customers. In some cases, based on local conditions, non-manufacturing employees have returned to their worksites.

Our China business and operations were the first to be impacted by the virus, with the government temporarily suspending our operations, as well as the operations of most Chinese business, including our Chinese customers and suppliers, at the beginning of February. We resumed production in mid-February and reached full production capacity by early-March.

Our U.S. and European businesses were first impacted later in the first quarter, and the impact continued through the rest of the fiscal year and through the date of this filing. In both the U.S. and Europe, we generally maintained operations at close to normal levels, with the additional employee safety precautions implemented at our facilities. We do not believe these additional precautions, in the aggregate, had a material impact on our financial performance in 2020. In the U.S., exemptions from state-level “shelter in place” directives with respect to numerous sectors, including the Communications, Healthcare and Public Health, Defense Industrial Base, Critical Manufacturing and Information Technology sectors, have largely enabled us to continue our operations while those directives were in place through the date of this filing.

Our operations were not affected by any material shortages, as our inventory and supply chain met our manufacturing requirements. Global demand continued to be impacted in the fourth quarter by the COVID-19 pandemic, although to a lesser extent than prior quarters. General industrial and mass transit market demand continued to be the most impacted. Demand improved in some markets in the second half of 2020, such as portable electronics, EV/HEV, aerospace and defense and automotive relative to the first half of 2020. We expect that the COVID-19 pandemic will have a continuing but uncertain impact on our business and operations in the short- and medium-term.

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Operating Segments

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 infrastructure (e.g., power amplifiers, antennas and small cells), automotive (e.g., ADAS, telematics and thermal solutions), aerospace and defense (e.g. antenna systems, communication systems and phased array radar systems), connected devices (e.g., mobile internet devices and thermal solutions) and wired infrastructure (e.g., computing and IP infrastructure) markets. We believe these products have characteristics that offer performance and other functional advantages in many market applications that serve to differentiate our products from other commonly available materials. ACS products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits. Trade names for our ACS products include: RO4000® Series, RO3000® Series, RT/duroid®, CLTE Series®, TMM®, AD Series®, DiClad® Series, CuClad® Series, Kappa®, COOLSPAN®, TC Series®, 92ML™, IsoClad® Series, MAGTREX™, XTremeSpeed RO1200™ Laminates, IM Series™, 2929 Bondply, 3001 Bondply Film and SpeedWave™ Prepreg. As of December 31, 2020, our ACS operating segment had 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 engineered material solutions for a wide variety of applications and markets. These include polyurethane and silicone materials used in cushioning, gasketing and sealing, and vibration management applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense, footwear and impact mitigation and printing markets; customized silicones used in flex heater and semiconductor thermal applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive and aerospace and defense markets. We believe 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). Trade names for our EMS products include: PORON®, BISCO®, DeWAL®, ARLON®, eSorba®, Griswold®, XRD®, R/bak® and HeatSORB™.

As of December 31, 2020, our EMS operating segment had administrative and manufacturing facilities in Moosup, Connecticut; Rogers, Connecticut; Woodstock, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Ansan, South Korea; and Suzhou, China. We also own 50% of two unconsolidated joint ventures: (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 the 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, busbars and cooling solutions for a variety of applications in EV/HEV, general industrial, mass transit, renewable energy, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik® trade name and our busbars under the ROLINX® trade name. As of December 31, 2020, our PES operating segment had manufacturing and administrative facilities in Evergem, Belgium; Eschenbach, Germany; Budapest, Hungary; and Suzhou, China.

Other

Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR® trade name and our floats under our NITROPHYL® trade name.

Sales and Competition

We sell our materials and components primarily through direct sales channels positioned near major concentrations of our customers in North America, Europe and Asia. We sold to approximately 3,600 customers worldwide in 2020, primarily OEMs and component suppliers. No individual customer represented more than 10% of our total net sales for 2020; however, there are concentrations of OEM customers in our ACS (Chinese telecommunications equipment manufacturers) and PES (semiconductor and automotive manufacturers) operating segments. Although the loss of any one of our larger customers would

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require a period of adjustment, during which the results of operations could be materially adversely impacted, we believe that such events could be successfully mitigated over a period of time due to the diversity of our customer base.

We employ a technical sales and marketing approach pursuant to which we work collaboratively to provide design engineering, testing, product development and other technical support services to OEMs that incorporate our engineered materials and components in their products. Component suppliers convert, modify or otherwise incorporate our engineered materials and components into their components for these OEMs in accordance with their specifications. Accordingly, we provide similar technical support services to component suppliers.

We compete primarily with manufacturers of high-end materials, some of which are large, multi-national companies, principally on the basis of innovation, historical customer relationships, product quality, reliability, performance and price, technical and engineering service and support, breadth of product line, and manufacturing capabilities. We also compete with manufacturers of commodity materials, including smaller regional producers with lower overhead costs and profit requirements located in Asia that attempt to upsell their products based principally upon price, particularly for products that have matured in their life cycle. We believe that we have a competitive advantage because of our reputation for innovation, the performance, quality and reliability of our materials and components, and our commitment to technical support and customer service.

Research and Development

We have a history of innovation, and innovation leadership is a key component of our overall business strategy. The markets we serve are typically characterized by rapid technological changes and advances. Accordingly, the success of our strategy is in part dependent on our ability to develop market-leading products, which is primarily driven by efforts in R&D. We are focused on identifying technologies and innovations related to both our current product portfolio as well as initiatives targeted at further diversifying and growing our business. As part of this technology commitment, we have a Rogers Innovation Center co-located at Northeastern University in Burlington, Massachusetts, as well as Rogers Innovation Centers at our facilities in Chandler, Arizona, Eschenbach, Germany and Suzhou, China. Our Innovation Centers focus on early stages of technical and commercial development of new high-tech materials solutions in an effort to align with market direction and needs.

Patents and Other Intellectual Property

We have many domestic and foreign patents, licenses and additional patent applications pending related to technology in each of our operating segments. These patents and licenses vary in duration and provide some protection from competition. We also own a number of registered and unregistered trademarks and have acquired and developed certain confidential and proprietary technologies, including trade secrets that we believe to be of some importance to our business.

While we believe our patents and other intellectual property provide a competitive advantage to our operating segments, we believe that a significant part of our competitive position and future success will be determined by factors such as the innovative skills, systems and process knowledge, and technological expertise of our personnel; the range of new products we develop; and our customer service and support.

Manufacturing and Raw Materials

The key raw materials used in our business are as follows: for our ACS operating segment, copper, polymer, polytetraflouroethylene and fiberglass materials; for our EMS operating segment, polyol, isocyanates, polytetraflouroethylene, ultra-high molecular weight polyethylene materials, silicone and natural rubber materials; and for our PES operating segment, copper, ceramic and brazing paste materials, including silver.

Some of the raw materials used in our business are available through sole or limited-source suppliers. While we have undertaken strategies to mitigate the risks associated with sole or limited source suppliers, these strategies may not be effective in all cases, and price increases or disruptions in our supply of raw materials could have a material adverse impact on our business. For additional information, refer to “Item 1A. Risk Factors.”

Seasonality

Except for some minor seasonality for consumer products, which often aligns with year-end holidays and product launch cycles, the operations of our segments have not been seasonal.

Human Capital Management

The Company’s continuing success derives from our talented and dedicated employees globally, who are responsible for the innovation, operations and ethics foundational to our business and its future. In 2020, our employees navigated the challenges from COVID-19, and, with an overarching commitment to health and safety, maintained a steady flow of materials for our customers, including for critical infrastructure and health applications.

As of December 31, 2020, we employed approximately 3,350 people, of whom approximately 1,250 were employed in the U.S., 1,150 in Europe and 950 in China. Approximately 375 of our domestic employees are covered by collective bargaining

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agreements or by specific labor agreements and approximately 750 of our European employees are covered by work council arrangements.

Our approach to human capital management is based on our culture of respect, which is built on the ethical foundation of our Code of Business Ethics and our commitment to making choices that are based on what is ethically sound and not just what is easy or expedient. Additionally, we connect our day-to-day work with our organizational objectives through our Cultural Behaviors: Live Safely, Trust, Just Decide, Speak Openly, Simply Improve, Innovate and Deliver Results. Management’s principal objectives, with oversight from our Board of Directors, are Health and Safety, Employee Experience and Diversity and Inclusion.

Health and Safety

The health and safety of our employees is a paramount objective. We strive to minimize lost workdays and recordable incidents. To promote awareness and accountability, safety performance data is shared throughout the company and executive compensation includes safety performance factors.

Employment Experience

We take a comprehensive approach to the employment experience, striving to use a fair and inclusive recruiting process to select talented individuals. Once we hire, we endeavor to provide our employees a safe and ethical work environment that includes fair compensation, opportunities for career development and employee engagement. We are proud to invest in our employees’ futures through a variety of technical and other training opportunities internally, as well as education reimbursement programs globally.

Diversity and Inclusion

We continue to advance efforts to improve diversity and inclusion within the Company, focusing on attracting and maintaining diverse talent within the organization and promoting awareness and acceptance globally. We believe that our diversity and inclusion will make the Company a more desirable workplace and will lead to improved business performance.

Backlog

Our sales are generally pursuant to short-term purchase orders. These purchase orders are made without deposits and may be rescheduled, canceled or modified on relatively short notice, without substantial penalty. Therefore, even though we may have a large backlog from time to time, we believe the purchase orders or backlog are not necessarily a reliable indicator of future sales.

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Information About Our Executive Officers

Our executive officers as of February 18, 2021 were as follows:

Name	Age	Present Position	Year Appointed to Present Position	Other Relevant Positions Held
Bruce D. Hoechner	61	President and Chief Executive Officer, Director, Principal Executive Officer	2011
Michael M. Ludwig	59	Senior Vice President, Chief Financial Officer and Treasurer, Principal Financial Officer	2018	Senior Vice President and Chief Financial Officer, FormFactor, Inc., from May 2011 to March 2018.
Jonathan J. Rowntree	49	Senior Vice President and General Manager, Advanced Connectivity Solutions	2019	Senior Vice President and Global Head of Industrial Electronics, Henkel Electronic Materials, from January 2017 to May 2019; Senior Vice President and General Manager, Henkel Electronic Materials, from July 2015 to December 2016.
R. Colin Gouveia	57	Senior Vice President and General Manager, Elastomeric Material Solutions	2019	Vice President and General Manager, Eastman Chemical Co., from December 2014 to June 2019.
Peter B. Williams	58	Senior Vice President, Global Operations and Supply Chain	2019	Vice President of Global Operations, MKS Instruments, 2011 to July 2019.
Robert C. Daigle	57	Senior Vice President and Chief Technology Officer	2009
Jay B. Knoll	57	Senior Vice President, Corporate Development, General Counsel and Secretary	2017	Vice President and General Counsel, Rogers Corporation, from November 2014 to February 2017.
Benjamin M. Buckley	48	Vice President and Chief Human Resources Officer	2019	Associate General Counsel and Director of Global Compliance and Integrity, Rogers Corporation, from October 2014 to January 2019.

Available Information

We make available on our website (http://www.rogerscorp.com), or through a link posted on our website, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, reports filed by our executive officers and directors pursuant to Section 16 of the Exchange Act, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (SEC). In addition, the SEC maintains an internet site that contains these reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (http://www.sec.gov).

We also make available on our website the charters for our Audit Committee, Compensation and Organization Committee, and Nominating and Governance Committee, in addition to our Corporate Governance Guidelines, Bylaws, Code of Business Ethics, and Compensation Recovery Policy. Our website is not incorporated into or a part of this Form 10-K.

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Item 1A. Risk Factors

Our business, results of operations and financial position are subject to various risks, including those discussed below, which may affect the value of our capital stock. The following risk factors, which we believe represent the most significant factors that may make an investment in our capital stock risky, may cause our actual results to differ materially from those projected in any forward-looking statement. You should carefully consider these factors, as well as the other information contained in this Annual Report on Form 10-K, including the information set forth in “Item 1. Business - Forward-Looking Statements” and “Item 7. Management’s Discussion and Analysis of Results of Operations and Financial Position,” when evaluating an investment in our capital stock.

Risks Relating to the COVID-19 Pandemic

The COVID-19 pandemic and global responsive measures have impacted our business and results of operations and could materially adversely affect our business, results of operations and financial position in future periods.

The COVID-19 pandemic has spread globally and resulted in governmental authorities implementing numerous responsive measures, such as travel bans and other restrictions, including quarantines, shelter-in-place and stay-home orders, transportation disruptions, closures and shutdowns. We maintain significant manufacturing and administrative operations in the U.S., China, Belgium, Germany, South Korea and Hungary, and each of these countries has been significantly affected by the outbreak and taken measures to try to contain it and to distribute vaccines as they are approved. We have also modified our business practices in an effort to ensure business continuity while promoting continued employee health and well-being. Collectively, these measures have impacted and are likely to continue to impact our workforce and operations. In addition, the outbreak and associated responsive measures have resulted in significant disruption of the global economy, leading to steep declines and increased volatility in the financial markets, and it is possible that a potentially severe global recession will follow.

There is considerable uncertainty regarding the effect of COVID-19 as well as current and future responsive measures on our business, including on our workforce and operations. We may experience sustained demand reductions for our products in certain end markets, be unable to satisfy customer demand and face increased operating costs, asset impairments and cash flow reductions, all of which could have a material adverse effect on our business, results of operations and financial position.

Risks Relating to Our Business, Strategy and Operations

Failure to capitalize on, volatility within, or other adverse changes with respect to the Company’s growth drivers, including advanced mobility and advanced connectivity, may adversely affect our business.

We derived approximately 25% and 24% of our net sales for the year ended December 31, 2020 from sales relating to the key market growth drivers of advanced mobility and advanced connectivity, respectively. These growth drivers are served by our direct and indirect customers in a variety of markets, including automotive (i.e., ADAS) and EV/HEV, wireless infrastructure and portable electronics. These growth drivers, as well as specific market and industry trends within them, may be volatile, cyclical and sensitive to a variety of factors, including general economic conditions, technology disruptions, consumer preferences and political priorities. Adverse or cyclical changes to and within these growth drivers, such as delays in adoption or implementation of new technologies, has resulted in, and may continue to result in, reduced demand for certain of our products, production overcapacity, increased inventory levels and related risks of obsolescence, as well as price erosion, ultimately leading to a decline in our operating results. Acceleration within these growth drivers and corresponding rapid increases in demand for certain products may also require us to make significant capital investments or acquisitions in order to increase production levels and to maintain customer relationships and market positions. However, we may not be able to increase our production levels with sufficient speed or efficiency to capitalize on such increases in demand.

We have extensive international operations, and events and circumstances that have general international consequence or specific impact in the countries in which we operate may materially adversely affect our business.

For the year ended December 31, 2020, approximately 72% of our net sales resulted from sales in foreign markets, with approximately 47% and 23% of such net sales occurring in Asia and Europe, respectively. We expect our net sales in foreign markets to continue to represent a substantial majority of our consolidated net sales. We maintain significant manufacturing and administrative operations in China, Belgium, Germany, South Korea and Hungary, and approximately 60% of our employees were located outside the U.S. as of December 31, 2020. Risks related to our extensive international operations include the following:

•foreign currency fluctuations, particularly in the value of the euro, the Chinese renminbi, the South Korean won, the Japanese yen and the Hungarian forint against the U.S. dollar;

•economic and political instability due to regional or country-specific events or changes in relations between the U.S. and the countries in which we operate;

•accounts receivable practices across countries, including longer payment cycles;

•export control or customs matters, including tariffs and trade restrictions;

•changes in multilateral and bilateral trade relations

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•complications in complying, and failure to comply, with a variety of laws and regulations applicable to our foreign operations, including due to unexpected changes in the laws or regulations of the countries in which we operate;

•failure to comply with the Foreign Corrupt Practices Act or other applicable anti-corruption laws;

•greater difficulty protecting our intellectual property;

•compliance with foreign employment regulations, as well as work stoppages and labor and union disputes.

The foregoing risks may be particularly acute in emerging markets such as China and India, where our operations are subject to greater uncertainty due to increased volatility associated with the developing nature of the economic, legal and governmental systems of these countries, changes in bilateral and multilateral arrangements with the U.S. and other governments, and challenges that some multinational customers that are headquartered in emerging markets may have complying fully with U.S. and other developed market extraterritorial regulations. In addition, our business has been, and may continue to be, adversely affected by the lack of development, or disruptions, of transportation or other critical infrastructure, including wireless infrastructure, in emerging markets. If we are unable to successfully manage the risks associated with expanding our global business, or to adequately manage operational fluctuations, it may materially adversely affect our business, results of operations and financial position.

Deteriorating trade relations between the U.S. and China, other trade conflicts and barriers, economic sanctions, and Chinese policies to decrease dependence on foreign suppliers could limit or prevent certain existing or potential customers from doing business with us and materially adversely affect our business.

The increased trade conflicts between the U.S. and its major trading partners, evidenced by trade restrictions such as tariffs, taxes, export controls, economic sanctions, and enhanced policies designed to protect national security, could adversely impact our business. In particular, we have experienced and expect that we may in the future experience impacts on our business due to the increase in trade conflicts between the U.S. and China. The May 2019 U.S. Department of Commerce addition of Huawei to its “entity list,” and subsequently implemented Foreign Direct Products Rules, limits the ability of U.S. and foreign companies to export products and license technologies to Huawei. Although we have been able to continue supplying Huawei’s fabricators while in compliance with all restrictions, the ongoing impact of the Huawei export controls on 5G demand and the demand for our products is currently uncertain. Such export controls, as well as retaliatory controls and tariffs that China has imposed and which remain in place to a certain extent under the Phase 1 agreement reached between the U.S. and China on January 15, 2020, could continue to restrict our ability to do business with Huawei and other Chinese customers. Further U.S. government actions to protect domestic economic and security interests could lead to further restrictions. China continues to be a fast-developing market, and an area of potential growth for us. Sales to customers located in China and the Asia Pacific region have typically accounted for nearly half of our total sales and a substantial majority of our overall sales to customers located outside the U.S. In addition, certain of the end products created in China that incorporate our products are ultimately sold outside of the Asia Pacific region. We expect that revenue from these sales generally, and sales to China and the Asia Pacific region specifically, will continue to be a material component of our total revenue. Therefore, any financial crisis, trade war or dispute or other major event causing business disruption in international jurisdictions generally, and China and the Asia Pacific region in particular, could negatively affect our business, results of operations and financial position.

China’s stated policy of reducing its dependence on foreign manufacturers and technology companies has resulted and may continue to result in reduced demand for our products in China. These trends could have a material adverse impact on our business, results of operations and financial position. In addition, there are risks that the Chinese government may, among other things, require the use of local suppliers, compel companies that do business in China to partner with local companies to conduct business, or provide incentives to government-backed local customers to buy from local suppliers rather than companies like ours, all of which could adversely impact our business, results of operations and financial position.

Our business is dependent upon our development of innovative products and our customers’ incorporation of those products into end user products and systems that achieve commercial success.

As a manufacturer and supplier of engineered materials and components, our business depends upon our ability to innovate and sell our materials and components for inclusion in other products that are developed, manufactured and sold by our customers. We strive to differentiate our products and secure long-term demand through our engagement with our customers to design in our materials and components as part of their product development processes. The value of any design-in largely depends upon the decision of our customers to manufacture their products or systems in sufficient production quantities, the commercial success of the end product and the extent to which the design of our customers’ products or systems could accommodate substitution of competitor products. A consistent failure to introduce new products in a timely manner, achieve design-ins or achieve market acceptance on commercially reasonable terms could materially adversely affect our business, results of operations and financial position. The introduction of new products presents particularly significant business challenges in our business because product development commitments and expenditures must be made well in advance of product sales.

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Our dependence on sole or limited source suppliers for certain of our raw materials could materially adversely affect our ability to manufacture products and materially increase our costs.

We rely on sole and limited source suppliers for certain of the raw materials that are critical to the manufacturing of our products. This reliance subjects us to risks related to our potential inability to obtain an adequate supply of required raw materials, particularly given our use of lean manufacturing and just-in-time inventory techniques, and our reduced control over pricing and timing of delivery of raw materials. Our operating results could be materially adversely affected if we were unable to obtain adequate supplies of these materials in a timely manner or if their cost increased significantly.

While we believe we could obtain and qualify alternative sources for most sole and limited source supplier materials if necessary, the transition time could be long, particularly if the change requires us to redesign our systems. Ultimately, we may be unable to redesign our systems, which could further increase delays or prevent us from manufacturing our products at all. Even if a system redesign is feasible, increased costs associated with such a redesign would decrease our profit margins, perhaps materially, if we could not effectively pass such costs along to our customers. Further, it would likely result in production and delivery delays, which could lead to lost sales and damage to our relationships with current and potential customers.

We face intense global competition, which could reduce demand for our products or create additional pricing pressure on our products.

We operate in a highly competitive global environment and compete with domestic and international companies principally on the basis of the following:

•innovation;

•historical customer relationships;

•product quality, reliability, performance and price;

•technical and engineering service and support;

•breadth of product line; and

•manufacturing capabilities.

Our competitors include commodity materials suppliers, which offer product substitutions based mostly on price, and suppliers of alternate solutions, which offer product substitutions or eliminations based mostly on disruptive technology. Certain of these competitors have greater financial and other resources than we have and, in some cases, these competitors are well established in specific product niches. We expect that our competitors will continue to improve the design and performance of their products, which could result in the development of products that offer price or performance features superior to our products. Furthermore, our customers may engage in internal manufacturing of products that may result in reduced demand for our products. If we are unable to maintain our competitive advantage for any reason, demand for our products may be materially reduced, which may adversely affect our business, results of operations and financial position.

We have engaged in transactions in the past and may in the future acquire or dispose of businesses, or engage in other transactions, which expose us to a variety of risks that could materially adversely affect our business operating results and financial position.

From time to time, we have explored and pursued transaction opportunities that we believe complement our core businesses, and we expect to do so again in the future. We have also divested and may again consider divesting businesses or assets that we do not regard as part of our core businesses. These transaction opportunities may come in the form of acquisitions, joint ventures, investments, divestitures or other structures. There are risks associated with such transactions, including, without limitation, general business risk, technology risk, market acceptance risk, litigation risk, environmental risk, regulatory approval risk and risks associated with the failure to complete announced transactions. In the case of acquisitions, we may not be able to discover, during the due diligence process or otherwise, all known and unknown risks associated with the business we are acquiring, including the existence of liabilities. We may spend a significant portion of available cash, incur substantial debt or issue equity securities, which would dilute current shareholders’ equity ownership, to pay for the acquisitions. In addition, if we are unsuccessful in integrating any acquired company or business into our operations or if integration is more difficult than anticipated, we may experience disruptions that could harm our business and result in our failure to realize the anticipated benefits of the acquisitions. In the case of divestitures, we may agree to indemnify acquiring parties for known or unknown liabilities arising from the businesses we are divesting. We have incurred, and may in the future incur, significant costs in the pursuit and evaluation of transactions that we do not consummate for a variety of reasons.

As a result, these transactions may not ultimately create value for us or our shareholders and may harm our reputation and materially adversely affect our business, results of operations and financial position.

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The failure to attract and retain specialized technical and management personnel could impair our expected growth and future success.

We depend upon the continued services and performance of key executives, senior management and skilled technical personnel, particularly our sales engineers and other professionals with significant experience in the key industries we serve. Competition for these personnel from other companies, academic institutions and government entities is intense, and our expected growth and future success will depend, in large part, upon our ability to attract and retain these individuals.

If we suffer loss or disruption to our facilities, supply chains, distribution systems or information technology systems due to catastrophe or other events, our business could be seriously harmed.

Our facilities, supply chains, distribution systems and information technology systems are subject to catastrophic loss or disruption due to fire, flood, earthquake, hurricane, public health crisis, war, terrorism or other natural or man-made disasters or events. If any of these facilities, supply chains or systems were to experience a catastrophic loss or disruption, it could disrupt our operations, delay production and shipments, result in defective products or services, damage customer relationships and our reputation and result in legal exposure and large repair or replacement expenses. For instance, the COVID-19 pandemic and related quarantines and work and travel restrictions have disrupted, and may continue to disrupt, production of and demand for certain of our products. Additionally, there was a fire at our UTIS manufacturing facility in Ansan, South Korea in early February 2021, which resulted in extensive damage to the manufacturing site. The extent to which these events will affect our results of operations and financial position remains uncertain. The third-party insurance coverage that we maintain will vary from time to time in both type and amount depending on cost, availability and our decisions regarding risk retention, and may be unavailable or insufficient to protect us against losses or disruptions.

A significant disruption in, or breach in security of, our information technology systems or violations of data protection laws could materially adversely affect our business and reputation.

In the ordinary course of business, we collect and store confidential information, including proprietary business information belonging to us, our customers, suppliers, business partners and other third parties and personally identifiable information of our employees. We rely on information technology systems to protect this information and to keep financial records, process orders, manage inventory, coordinate shipments to customers, and operate other critical functions. Our information technology systems are susceptible to damage, disruptions or shutdowns due to power outages, hardware failures, telecommunication failures, systems upgrades (including the planned implementation of a new enterprise resource planning system) and user errors. If we experience a disruption in our information technology systems, it could result in the loss of sales and customers and significant incremental costs, which could materially adversely affect our business.

We are also subject to security breaches caused by computer viruses, illegal break-ins or hacking, sabotage, or acts of vandalism by disgruntled employees or third parties. The risk of a security breach or disruption, particularly through cyberattack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased, in part because of evolving technologies, the ubiquitous use of the Internet and telecommunications technologies (including mobile devices) to conduct business transactions. Our information technology network and systems have been and, we believe, continue to be under constant attack. Accordingly, despite our security measures or those of our third-party service providers, we have experienced and may in the future experience security breaches, including breaches that we may not be able to detect. Security breaches of our information technology systems, including through mobile devices, could result in the misappropriation or unauthorized disclosure of confidential information belonging to us or to our customers, suppliers, business partners, employees or other third parties, which could result in our suffering significant financial and reputational damage. If we are unable to protect sensitive information, our customers or governmental authorities could question the adequacy of our security processes and procedures and our compliance with applicable laws and regulations, including evolving government cyber security requirements for government contractors.

In addition, the processing and storage of certain information is increasingly subject to privacy and data security regulations, and many such regulations are country-specific. The interpretation and application of data protection laws in the U.S., Europe, and elsewhere, including the EU General Data Protection Regulation and the California Consumer Privacy Act, are uncertain, evolving and may be inconsistent among jurisdictions. Compliance with these various laws may be onerous and require us to incur substantial costs or to change our business practices in a manner that adversely affects our business, while failure to comply with such laws may subject us to substantial penalties.

Employee benefit cost increases could reduce our profitability.

Our profitability is affected by employee benefit costs, particularly medical and other employee benefits. In recent years, employee medical costs have increased due to factors such as the increase in health care costs in the U.S. These factors will continue to put pressure on our business and financial performance, as employee benefit costs continue to escalate. We may not succeed in limiting future cost increases. Continued employee benefit cost increases could have an adverse effect on our results of operations, cash flows and financial position.

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We also sponsor one material defined benefit pension plan that covers certain union employees. Our costs of providing this plan are dependent upon a number of factors and assumptions that drive the plan’s funding status and projected annual expenses, such as discount rates, the actual and projected rates of return on the plans’ assets, governmental regulation, global equity prices, portfolio composition, mortality rates and required or voluntary contributions to the plan. Changes in these factors and assumptions could have a negative impact on our defined benefit pension plan, which could result in unfavorable changes in the net assets and funded status of the plan and increases in annual net periodic benefit costs. Unfavorable changes in the plan’s net assets and funded status could result in increased funding requirements. All of these potential changes could negatively impact our results of operations, cash flows and financial position.

Legal, Compliance and Regulatory Risks

Our business may be materially adversely affected if we cannot protect our proprietary technology or if we infringe the proprietary rights of others.

Our proprietary technology supports our ability to compete effectively with other companies, and we seek to protect our intellectual property rights by obtaining domestic and foreign patents, trademarks and copyrights, and maintaining trade secrets for our manufacturing processes. It is possible, however, that our efforts to obtain such protection in the U.S. and abroad will be unsuccessful or that the protection afforded will not be sufficiently broad to protect our technology.

Even if domestic and foreign laws do grant initial protection to our technology, our competitors or other third parties may subsequently obtain and unlawfully copy, use or disclose our technologies, products, and processes. We believe that the risk of piracy of our technology is particularly acute in the foreign countries in which we operate. In circumstances in which we conclude that our proprietary technology has been infringed, we have pursued, and may again pursue, litigation to enforce our rights. The defense and prosecution of intellectual property infringement suits are both costly and time consuming, even if the outcome is favorable to us. If we are not successful in protecting our proprietary technology or if the protection afforded to us is not sufficiently broad, our competitors may be able to manufacture and offer products substantially similar to our own, thereby reducing demand for our products and adversely affecting our results of operations and financial position. We may also be adversely affected by, and subject to increased competition as a result of, the normal expiration of our issued patents.

Our competitors or other third parties may also assert infringement or invalidity claims against us in the future. In addition to the significant costs associated with such suits, as noted above, an adverse outcome could subject us to significant liabilities to third parties and require us to license rights from third parties or cease selling our products. Any of these events may have a material adverse effect on our business, results of operations and financial position.

As a multinational corporation doing business in the U.S. and various foreign jurisdictions, changes in tax laws or exposures to additional tax liability could negatively impact our operating results.

As a result of the variability and uncertainty in global taxation, we are subject to a wide variety of tax-related risks, any of which could provoke changes in our global structure, international operations or intercompany agreements, which could materially reduce our net income in future periods or result in restructuring costs, increased effective tax rates and other expenses. Given the global nature of our business, a number of factors may increase our effective tax rates or otherwise subject us to additional tax liability, including:

•decisions to redeploy foreign earnings outside of their country of origin for which we have not previously provided for income taxes;

•increased scrutiny of our transactions by taxing authorities;

•changes in the geographic mix of our profits among jurisdictions with differing statutory income tax rates;

•ability to utilize, or changes in the valuation of, deferred tax assets; and

•changes in tax laws, regulations and interpretations thereof or issuance of new interpretations of laws or regulations applicable to us.

For instance, many foreign jurisdictions are actively considering changes to existing tax laws as a result of the base erosion and profit shifting project undertaken by the Organization for Economic Co-operation and Development (OECD). If these changes are enacted, our tax obligations could increase in countries where we do business or sell our products.

The terms of our credit agreement subject us to risks, including potential acceleration of our outstanding indebtedness if we fail to satisfy financial ratios and comply with numerous covenants.

Our credit agreement contains, and any future debt agreements into which we enter may contain, certain financial ratios and certain restrictive covenants that, among other things, limit our ability to incur indebtedness or liens, acquire other businesses, dispose of assets, or make investments. Our ability to make scheduled payments on these borrowings and to satisfy financial ratios may be adversely affected by changes in economic or business conditions beyond our control, while the restrictive covenants to which we are subject may limit our ability to take advantage of potential business opportunities as they arise. Failure to satisfy these financial ratios or to comply with the covenants in our credit agreement would constitute a default. An uncured default with respect to one or more of our covenants could result in outstanding borrowings thereunder being declared

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immediately due and payable, which may also trigger an obligation to repay other outstanding indebtedness. Any such acceleration of our indebtedness would have a material adverse effect on our cash flows, financial position and results of operations.

Our credit agreement currently permits us to borrow euro-currency loans that bear interest based on the London interbank offered rate (LIBOR), plus a specified spread. In July 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced that it intends to phase out LIBOR by the end of 2021. However, LIBOR borrowings may become unavailable before that date. When LIBOR becomes unavailable, our credit agreement provides for a new reference rate for borrowings thereunder, dependent upon certain facts and circumstances. There is a risk that this new reference rate may be higher than our projected future LIBOR interest rates, thereby causing the cost of our borrowings to increase.

We may be adversely affected by litigation stemming from product liability and other claims.

Our products may contain defects that we do not detect before sale, which may lead to warranty or damage claims against us or product recalls. We are involved in various unresolved legal matters that arise in the ordinary course of our operations or otherwise, including asbestos-related product liability claims related to our operations before the 1990s. For additional information, refer to “Item 3. Legal Proceedings” and “Note 12 – Commitments and Contingencies” to “Item 8. Financial Statements and Supplementary Data.” We maintain insurance coverage with respect to certain claims, but the policy coverage limits may not be adequate or cover a particular loss. Costs associated with, among other things, the defense of, or settlements or judgments relating to, claims against us that are not covered by insurance or that result in recoveries in excess of insurance coverage may adversely affect our business, results of operations and financial position. Irrespective of insurance coverage, claims against us could divert the attention of our senior management and/or result in reputational damage, thereby adversely affecting our business.

Our projections on the potential exposure and expected insurance coverage relating to our asbestos-related product liability claims are based on a number of assumptions, including 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 U.S. To the extent such assumptions are inaccurate, the net liabilities that we have recorded in our financial statements may fail to approximate the losses we could suffer in connection with such claims.

We are subject to many environmental laws and regulations as well as potential environmental liabilities that could adversely affect our business.

We are subject to a variety of federal, state, local and foreign laws, rules and regulations related to the use, storage, handling, discharge or disposal of certain toxic, volatile or otherwise hazardous chemicals, gases and other substances used in manufacturing our products. Some of these laws in the U.S. include the Federal Clean Water Act, Clean Air Act, Resource Conservation and Recovery Act, Comprehensive Environmental Response, Compensation, and Liability Act, Toxic Substances Control Act, and similar state statutes and regulations. In the European Union (EU), we are subject to the EU regulations (and their related national implementing legislation) including the Registration, Evaluation, Authorization and Restriction of Chemicals, the Regulation on the Classification, Labelling and Packaging of Substances and Mixtures and the Industrial Emissions Directive. Compliance with these laws and regulations could require us to incur substantial expenses, including in connection with the acquisition of new equipment. Any failure to comply with present or future environmental laws, rules and regulations could result in criminal and civil liabilities, fines, suspension of production or cessation of certain operations, any of which could have a material adverse effect on our business, results of operations and financial position.

In addition, some environmental laws impose liability, sometimes without fault, for investigating and/or cleaning up contamination on, or emanating from, properties currently or formerly owned, leased or operated by us, as well as for damages to property or natural resources and for personal injury arising out of such contamination. Such liability may be joint and several, meaning that we could be held responsible for more than our share of the liability involved, or even the entire liability. For additional information regarding our material legal proceedings, refer to “Note 12 – Commitments and Contingencies” to “Item 8. Financial Statements and Supplementary Data.”

Item 1B. Unresolved Staff Comments

None.

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Item 2. Properties

We operate various general offices and manufacturing facilities throughout the U.S., Europe and Asia. The following table provides certain information about the material general offices and manufacturing facilities used by our operating segments:

Location	Floor Space (Square Feet)	Type of Facility	Leased / Owned	Operating Segment
United States
Chandler, Arizona	147,000	Manufacturing	Owned	ACS
Chandler, Arizona	105,100	Manufacturing	Owned	ACS
Chandler, Arizona	100,000	Manufacturing	Owned	ACS
Chandler, Arizona	75,000	Administrative Offices	Owned	All
Rogers, Connecticut	388,100	Manufacturing / Administrative Offices	Owned	All
Moosup, Connecticut	185,500	Manufacturing	Owned	EMS
Woodstock, Connecticut	150,600	Manufacturing	Owned	EMS
Carol Stream, Illinois	216,600	Manufacturing	Owned	EMS
Bear, Delaware	125,000	Manufacturing / Administrative Offices	Owned	ACS & EMS
Burlington, Massachusetts	6,000	R&D Lab / Administrative Offices	Leased through 2/2024	All
Narragansett, Rhode Island	84,600	Manufacturing	Owned	EMS
Europe
Eschenbach, Germany	149,000	Manufacturing / Administrative Offices	Leased through 6/2021	PES
Eschenbach, Germany	51,000	Warehouse / Administrative Offices	Leased through 12/2024	PES
Eschenbach, Germany	24,100	Warehouse / Administrative Offices	Leased through 12/2021	PES
Evergem, Belgium	122,000	Manufacturing / Administrative Offices	Owned	ACS & PES
Evergem, Belgium	55,700	Warehouse / Administrative Offices	Leased through 5/2021	ACS & PES
Ghent, Belgium	45,000	Warehouse	Leased through 3/2022	ACS & EMS
Budapest, Hungary	64,000	Manufacturing	Leased through 2/2023	PES
Asia
Suzhou, China	821,000	Manufacturing / Administrative Offices	Owned	All
Ansan, South Korea(1)	40,000	Manufacturing	Leased through 10/2021	EMS

(1) Our Ansan, South Korea facility, which we utilize to manufacture our eSorba® polyurethane foams, suffered extensive damage due to a fire in early February 2021.

Item 3. Legal Proceedings

Asbestos Products Litigation

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 were a defendant in 561 asbestos-related product liability cases as of December 31, 2020, compared to 592 cases as of December 31, 2019, with the change reflecting new cases, dismissals, settlements and other dispositions. 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. In virtually all of the cases against us, the plaintiffs are seeking unspecified damages above a jurisdictional minimum against multiple defendants who may have manufactured, sold or used asbestos-containing products to which the plaintiffs were allegedly exposed and from which they purportedly suffered injury. Most of these cases are being litigated in Maryland, Illinois, Missouri and New York; however, we are also defending cases in other states. We intend to vigorously defend these cases, primarily on the basis of the plaintiffs’ inability to establish compensable loss as a result of exposure to our products. As of December 31, 2020, the estimated liability and estimated insurance recovery for all current and future indemnity and defense costs projected through 2064 was $73.2 million and $66.8 million, respectively.

The indemnity and defense costs of our asbestos-related product liability litigation to date have been substantially covered by insurance. As of December 31, 2020, our consolidated statements of financial position include $6.4 million of estimated asbestos-related expenses that exceed asbestos-related insurance coverage for all current and future indemnity and defense costs projected through 2064. For additional information regarding our asbestos-related product liability litigation, refer to “Note 12 – Commitments and Contingencies” to “Item 8. Financial Statements and Supplementary Data.”

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Other Matters

We are currently involved in a variety of other legal proceedings that we view as ordinary, routine litigation incidental to our business, including commercial disputes, intellectual property matters, personal injury claims, tax claims and employment matters. Although the outcome of no legal matter can be predicted with certainty, we do not believe that the outcome of any of these legal proceedings, either individually or in the aggregate, will have a material adverse effect on our business, results of operations, cash flows or financial position. In addition, we are involved in certain environmental matters, which we do not view as material legal proceedings, either pending or known to be contemplated. For additional information regarding certain of these matters, refer to “Note 12 – Commitments and Contingencies” to “Item 8. Financial Statements and Supplementary Data.”

Item 4. Mine Safety Disclosures

Not applicable.

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Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Capital Stock Market Prices and Dividend Policy

Our capital stock is traded on the New York Stock Exchange under the symbol “ROG”. As of the end of business on February 12, 2021, we had 327 shareholders of record.

We currently retain all of our earnings for use in the operation and expansion of our business, to repurchase or redeem capital stock, and in the repayment of our debt. We have never declared or paid any cash dividends on our capital stock and may not pay any cash dividends in the foreseeable future. Whether or not dividends will be paid in the future will depend on, among other things, our results of operations, financial condition, level of indebtedness, cash requirements, covenants in our financings, contractual restrictions and other factors that our board of directors and our shareholders may deem relevant.

Performance Graph

The following graph compares the cumulative total return on Rogers’ capital stock over the past five fiscal years with the cumulative total return on the Standard & Poor’s Industrials Index (S&P Industrials) and the S&P Small Cap 600 Electronic Equipment, Instruments & Components Index. The graph tracks the performance of a $100 investment in the Company’s common stock and in each of the indexes (with the reinvestment of all dividends) on the date specified.

Issuer Purchases of Equity Securities

In 2015, we initiated a share repurchase program (the Program) of up to $100.0 million of the Company’s capital stock. We initiated the Program to mitigate the dilutive effects of stock option exercises and vesting of restricted stock units granted by the Company, in addition to enhancing shareholder value. The Program has no expiration date and may be suspended or discontinued at any time without notice. There were no share repurchases in 2020. As of December 31, 2020, $49.0 million remained available to purchase under the Program. For additional information regarding share repurchases, refer to “Note 18 – Share Repurchases” to “Item 8. Financial Statements and Supplementary Data.”

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Item 6. Selected Financial Data

(Dollars in thousands, except per share amounts)	2020			2019			2018			2017			2016
Financial Results
Net sales	$	802,583		$	898,260		$	879,091		$	821,043		$	656,314
Income before income tax expense	$	68,534		$	55,126		$	110,589		$	132,925		$	82,280
Net income	$	49,990		$	47,319		$	87,651		$	80,459		$	48,283
Per Share Data
Basic earnings per share	$	2.68		$	2.55		$	4.77		$	4.43		$	2.68
Diluted earnings per share	$	2.67		$	2.53		$	4.70		$	4.34		$	2.65
Book value	$	54.65		$	50.27		$	46.12		$	41.99		$	35.28
Financial Position
Current assets	$	474,175		$	464,102		$	485,786		$	454,523		$	458,401
Current liabilities	$	111,509		$	100,225		$	107,180		$	113,808		$	101,185
Ratio of current assets to current liabilities	4.3 to 1			4.6 to 1			4.5 to 1			4.0 to 1			4.5 to 1
Cash and cash equivalents	$	191,785		$	166,849		$	167,738		$	181,159		$	227,767
Net working capital	$	362,666		$	363,877		$	378,606		$	340,715		$	357,216
Property, plant and equipment, net	$	272,378		$	260,246		$	242,759		$	179,611		$	176,916
Total assets	$	1,264,005		$	1,273,181		$	1,279,344		$	1,125,134		$	1,056,500
Borrowings under revolving credit facility	$	25,000		$	123,000		$	228,482		$	130,982		$	235,877
Shareholders’ equity	$	1,020,755		$	933,900		$	848,324		$	766,573		$	635,786
Borrowings under revolving credit facility as a percentage of shareholders’ equity	2.4		%	13.2		%	26.9		%	17.1		%	37.1		%
Other Data
Depreciation and amortization	$	71,425		$	49,162		$	50,073		$	44,099		$	37,847
Research and development expenses	$	29,320		$	31,685		$	33,075		$	29,547		$	28,582
Capital expenditures	$	40,385		$	51,597		$	90,549		$	27,215		$	18,136
Number of employees (approximate)	3,350			3,600			3,700			3,400			3,100
Net sales per employee	$	240		$	250		$	238		$	241		$	212
Number of shares outstanding as of December 31	18,677			18,577			18,395			18,255			18,021

The financial data included within the preceding table should be read in conjunction with our Management’s Discussion and Analysis of Results of Operations and Financial Position as well as the Financial Statements and Supplementary Data included in Items 7 and 8, respectively, of this Form 10-K, and with our previously filed Forms 10-K.

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Item 7. Management’s Discussion and Analysis of Results of Operations and Financial Position

The following discussion and analysis of our results of operations and financial position should be read together with our consolidated financial statements and accompanying notes, which are contained in “Item 8. Financial Statements and Supplementary Data,” as well as “Item 6. Selected Financial Data.”

The discussion of the comparison of our 2019 and 2018 results was previously presented in the Management’s Discussion & Analysis in Part II, Item 7 of the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2020, and has been omitted from this section pursuant to Instruction 1 to Item 303(a) of Regulation S-K.

Company Background and Strategy

Rogers Corporation designs, develops, manufactures and sells high-performance and high-reliability engineered materials and components to meet our customers’ demanding challenges. We operate three strategic operating segments: Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS) and Power Electronics Solutions (PES). The remaining operations, which represent our non-core businesses, are reported in the Other operating segment.

During the first quarter of 2021, we completed the realignment of our strategic business segments to reflect the combination of our ACS and PES businesses resulting in a new strategic business segment, Advanced Electronics Solutions (AES). The combination of these two complementary businesses with capabilities in both high power and high frequency applications is expected to enhance our overall value proposition to customers in multiple high-growth markets.

We have a history of innovation and have established Innovation Centers for our research and development (R&D) activities in Chandler, Arizona; Burlington, Massachusetts; Eschenbach, Germany; and Suzhou, China. We are headquartered in Chandler, Arizona.

Our growth strategy is based upon the following principles: (1) market-driven organization, (2) innovation leadership, (3) synergistic mergers and acquisitions, and (4) operational excellence. As a market-driven organization, we are focused on growth drivers, including advanced mobility and advanced connectivity. More specifically, in addition to the impact COVID-19 discussed below, the key medium- to long-term trends currently affecting our business include the increasing use of advanced driver assistance systems (ADAS) and increasing electrification of vehicles, including electric and hybrid electric vehicles (EV/HEV), in the automotive industry and the growth of 5G smartphones in the portable electronics industry. In addition to our focus on advanced mobility and advanced connectivity in the automotive, portable electronics and telecommunications industries, we sell into a variety of other markets including general industrial, aerospace and defense, mass transit, renewable energy and connected devices.

Our sales and marketing approach is based on addressing these trends, while our strategy focuses on factors for success as a manufacturer of engineered materials and components: performance, quality, service, cost, efficiency, innovation and technology. We have expanded our capabilities through organic investment and strive to ensure high quality solutions for our customers. We continue to review and re-align our manufacturing and engineering footprint in an effort to attain a leading competitive position globally. We have established or expanded our capabilities in various locations in support of our customers’ growth initiatives.

We seek to enhance our operational and financial performance by investing in research and development, manufacturing and materials efficiencies, and new product initiatives that respond to the needs of our customers. We strive to evaluate operational and strategic alternatives to improve our business structure and align our business with the changing needs of our customers and major industry trends affecting our business.

Executive Summary

The following key highlights and factors should be considered when reviewing our results of operations, financial position and liquidity:

•In 2020 as compared to 2019, our net sales decreased by 10.7% to $802.6 million, our gross margin increased 140 basis points to 36.4% from 35.0%, and operating income as a percentage of net sales decreased 390 basis points to 8.4% from 12.3%.

•We made $248.0 million of discretionary principal payments on our revolving credit facility during the second, third and fourth quarters of 2020, partially offset by $150.0 million in borrowings under our revolving credit facility during the first quarter of 2020 as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic.

•We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including

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the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million.

•We commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our PES and ACS operating segments, and we recognized $12.3 million of restructuring charges in 2020 related to this project.

•We incurred incremental direct costs of $4.9 million in 2020, due to the COVID-19 pandemic. These costs primarily consist of temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as additional safety supplies. A substantial portion of the additional benefits under these programs expired in mid-June.

•We recognized an additional $27.4 million of amortization expense in 2020 due to the acceleration of amortization expense related to our Diversified Silicone Products, Inc. (DSP) customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020.

•In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea. This facility manufactures eSorba® polyurethane foams used in portable electronics and display applications. These operations will be disrupted, but it is too early to determine the expected duration of the disruption. The UTIS business represented less than 4% of our annual net sales in 2020.

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Results of Operations

The following table sets forth, for the periods indicated, selected operations data expressed as a percentage of net sales.

	2020		2019
Net sales	100.0	%	100.0	%
Gross margin	36.4	%	35.0	%
Selling, general and administrative expenses	22.7	%	18.8	%
Research and development expenses	3.7	%	3.5	%
Restructuring and impairment charges	1.6	%	0.3	%
Other operating (income) expense, net	—	%	0.1	%
Operating income	8.4	%	12.3	%
Equity income in unconsolidated joint ventures	0.6	%	0.6	%
Pension settlement charges	—	%	(5.9)	%
Other income (expense), net	0.4	%	(0.1)	%
Interest expense, net	(0.9)	%	(0.8)	%
Income before income tax expense	8.5	%	6.1	%
Income tax expense	2.3	%	0.8	%
Net income	6.2	%	5.3	%

Net Sales and Gross Margin

(Dollars in thousands)	2020			2019
Net sales	$	802,583		$	898,260
Gross margin	$	291,820		$	314,292
Percentage of net sales	36.4		%	35.0		%

Net sales decreased by 10.7% in 2020 compared to 2019. Our ACS, EMS and PES operating segments had net sales decreases of 15.1%, 9.2% and 4.3%, respectively. The decrease in net sales was primarily driven by significantly lower net sales in the 4G and 5G wireless infrastructure markets in our ACS operating segment, as well as lower net sales in the automotive market in our ACS operating segment, lower net sales in the general industrial, mass transit, consumer and automotive markets in our EMS operating segment and lower net sales in the mass transit, industrial power and vehicle electrification markets in our PES operating segment. The decrease in net sales was partially offset by higher net sales in the aerospace and defense market in our ACS operating segment, higher net sales in the EV/HEV and portable electronics markets in our EMS operating segment and higher net sales in the EV/HEV and renewable energy markets in our PES operating segment. Net sales were not materially impacted by changes in foreign currencies.

The lower net sales in the 4G and 5G wireless infrastructure markets in our ACS operating segment reflected the waning of 4G infrastructure spending by telecommunications companies in anticipation of 5G, as well as the impacts of trade tensions, increased competition and design changes by telecommunications equipment original equipment manufacturers (OEMs), which reduced our materials content in 5G base stations. The lower net sales in the automotive, mass transit and general industrial markets was largely due to the impacts of the COVID-19 pandemic.

The lower net sales in industrial power market in our PES operating segment was due to a slowdown in industrial automation demand due to the impacts of the COVID-19 pandemic combined with customer inventory rebalancing, which began in mid-2019 and continued through most of the first half of 2020. The lower net sales in the vehicle electrification market in our PES operating segment was due to the COVID-19 impacts on the automotive sector in the first half of 2020, partially offset by a recovery in the second half of 2020.

In our PES and EMS operating segments, we anticipate higher net sales in the EV/HEV market in 2021 driven by continued strong demand. In our ACS and EMS operating segments, we anticipate a strong recovery in the automotive market in 2021 following industry disruptions that occurred in the first half of 2020 due to the COVID-19 pandemic. In particular, we anticipate higher net sales for ADAS applications in 2021 driven by increased adoption of safety features in newer vehicles. In our EMS operating segment, we anticipate higher net sales in the portable electronics market in 2021 due to anticipated continuation of strong demand for 5G smartphones, tempered by the uncertain impacts from the fire at our UTIS manufacturing facility in early February 2021. In our ACS operating segment, we anticipate higher net sales in the aerospace and defense market in 2021 driven by funding of technology programs such as advanced defense and radar systems.

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Gross margin as a percentage of net sales increased 140 basis points to 36.4% in 2020 compared to 35.0% in 2019. Gross margin in 2020 was favorably impacted by lower freight, duties and tariffs costs in our ACS operating segment, including the recognition of a $3.3 million recovery of previous duty taxes paid due to a change in Chinese tariff regulations, favorable product mix in our EMS operating segment, lower fixed overhead costs and yield improvements in our ACS, EMS and PES operating segments, as well as favorable productivity performance and favorable absorption of fixed overhead costs in our PES operating segment. This was partially offset by lower volume in our ACS, EMS and PES operating segments, unfavorable absorption of fixed overhead costs in our ACS and EMS operating segments, an increase in inventory reserve provisions in our PES operating segment, as well as unfavorable product mix in our PES operating segment.

We incurred incremental direct costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as additional safety supplies. These costs impacted our gross margin by approximately $4.5 million in 2020. A substantial portion of the additional benefits under these programs expired in June 2020.

Selling, General and Administrative Expenses

(Dollars in thousands)	2020			2019
Selling, general and administrative expenses	$	182,283		$	168,682
Percentage of net sales	22.7		%	18.8		%

Selling, general and administrative (SG&A) expenses increased 8.1% in 2020 from 2019, primarily due to a $24.4 million increase in other intangible assets amortization, a $2.3 million increase in professional services and a $1.4 million increase in total compensation and benefits, partially offset by a $4.8 million decrease in travel and entertainment expenses, a $1.4 million decrease in depreciation, a $1.3 million decrease in advertising expenses, a $1.2 million decrease in recruiting/relocation/training expenses, a $1.1 million decrease in commissions expense and a $1.0 million decrease in environmental charges.

The increase in amortization expense in 2020 from 2019 was due to the acceleration of amortization expense related to our DSP customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020 due to an adjustment to their remaining useful lives. We recognized an additional $27.4 million of amortization expense in 2020 due to this acceleration. For additional information, refer to “Note 6 – Goodwill and Other Intangible Assets” to “Item 8. Financial Statements and Supplementary Data.”

The decreases in travel and entertainment and recruiting/relocation/training expenses were primarily driven by the impacts of COVID-19.

Research and Development Expenses

(Dollars in thousands)	2020			2019
Research and development expenses	$	29,320		$	31,685
Percentage of net sales	3.7		%	3.5		%

R&D expenses decreased 7.5% in 2020 from 2019, primarily due to decreases in laboratory expenses as well as travel and entertainment expenses, partially offset by increases in total compensation and benefits.

Restructuring and Impairment Charges and Other Operating (Income) Expense, Net

(Dollars in thousands)	2020		2019
Restructuring and impairment charges	$	12,987	$	2,485
Other operating (income) expense, net	$	(104)	$	959

We incurred restructuring charges associated with our manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations. We recognized $12.3 million of restructuring charges related to this restructuring project in 2020.

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We incurred restructuring charges associated with the consolidation of our Santa Fe Springs, California operations with the Company’s facilities in Carol Stream, Illinois and Bear, Delaware. We recognized $0.9 million of restructuring charges related to our facility consolidation in 2019.

We recognized $0.6 million of impairment charges in 2020 primarily related to certain fixed assets in Belgium and Hungary. We recognized $1.5 million of impairment charges in 2019 primarily related to certain fixed assets in connection with the Isola USA Corp. (Isola) asset acquisition.

In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola, we recognized lease income and related depreciation on leased assets of $1.0 million and $1.9 million, respectively, in 2019. Additionally, we recorded a gain of $0.7 million for the settlement of indemnity claims related to the Isola asset acquisition in 2019.

Equity Income in Unconsolidated Joint Ventures

(Dollars in thousands)	2020		2019
Equity income in unconsolidated joint ventures	$	4,877	$	5,319

As of December 31, 2020, we had two unconsolidated joint ventures, each 50% owned: Rogers INOAC Corporation (RIC) and Rogers INOAC Suzhou Corporation (RIS). Equity income in those unconsolidated joint ventures decreased 8.3% in 2020 from 2019 due to lower net sales as a result of the COVID-19 pandemic and declines in operational performance, for both RIS and RIC.

Pension Settlement Charges and Other Income (Expense), Net

(Dollars in thousands)	2020		2019
Pension settlement charges	$	(55)	$	(53,213)
Other income (expense), net	$	3,513	$	(592)

In 2020 and 2019, we recorded $0.1 million and $53.2 million of pre-tax settlement charges in connection with the termination of the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)). For additional information, refer to “Note 11 – Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan” to “Item 8. Financial Statements and Supplementary Data.”

Other income (expense), net improved to a net income of $3.5 million in 2020 compared to a net expense of $0.6 million in 2019 due to favorable impacts from our copper derivatives contracts and favorable impacts from our foreign currency transactions, including foreign currency derivatives, partially offset by higher costs associated with our defined benefit plans.

Interest Expense, Net

(Dollars in thousands)	2020		2019
Interest expense, net	$	(7,135)	$	(6,869)

Interest expense, net, increased by 3.9% in 2020 from 2019, primarily due to the $2.4 million acceleration of interest expense as a result of the termination of the interest rate swap on September 30, 2020, partially offset by lower interest expense on borrowings under our revolving credit facility, which was mainly attributable to a lower weighted-average interest rate year-over-year as well as a lower weighted-average outstanding balance for our borrowings under our revolving credit facility.

Income Tax Expense

(Dollars in thousands)	2020			2019
Income tax expense	$	18,544		$	7,807
Effective tax rate	27.1		%	14.2		%

Our effective income tax rate for 2020 was 27.1% compared to 14.2% for 2019. The increase from 2019 was primarily due to the increase in current year accruals of reserves for uncertain tax positions, the decrease in foreign tax credits available to offset foreign source income, the decrease in excess tax deductions on stock-based compensation and higher tax impact on unremitted foreign earnings and profits, partially offset by the beneficial impact of changes in valuation allowance related to R&D credits and pre-tax mix across jurisdictions with disparate tax rates.

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Operating Segment Net Sales and Operating Income

Advanced Connectivity Solutions

(Dollars in thousands)	2020		2019
Net sales	$	268,699	$	316,592
Operating income	$	38,202	$	48,654

ACS net sales decreased by 15.1% in 2020 compared to 2019. The decrease in net sales was primarily driven by significantly lower net sales in the 4G and 5G wireless infrastructure markets, as well as the lower net sales in the automotive market, partially offset by higher net sales in the aerospace and defense market. Net sales were not materially impacted by changes in foreign currencies.

The lower net sales in the 4G and 5G wireless infrastructure markets in our ACS operating segment reflected the waning of 4G infrastructure spending by telecommunications companies in anticipation of 5G, as well as the impacts of trade tensions, increased competition and design changes by telecommunications equipment original equipment manufacturers (OEMs), which reduced our materials content in 5G base stations. The lower net sales in the automotive market was largely due to the impacts of the COVID-19 pandemic.

We anticipate a strong recovery in the automotive market in 2021 following industry disruptions that occurred in the first half of 2020 due to the COVID-19 pandemic. In particular, we anticipate higher net sales for ADAS applications in 2021 driven by increased adoption of safety features in newer vehicles. Additionally, we anticipate higher net sales in the aerospace and defense market in 2021 driven by funding of technology programs such as advanced defense and radar systems.

Operating income decreased by 21.5% in 2020 from 2019. The decrease in operating income was primarily due to lower volume and unfavorable absorption of fixed overhead costs, partially offset by lower freight, duties and tariffs costs, including the recognition of a $3.3 million recovery of previous duty taxes paid due to a change in Chinese tariff regulations, yield improvements and lower fixed overhead costs. Additionally, our ACS operating segment incurred $4.6 million of restructuring and impairment charges in 2020. As a percentage of net sales, operating income in 2020 was 14.2%, an approximately 120 basis point decrease as compared to 15.4% in 2019.

The incremental direct costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as the additional safety supplies, impacted ACS operating income by approximately $1.9 million in 2020.

Elastomeric Material Solutions

(Dollars in thousands)	2020		2019
Net sales	$	328,177	$	361,603
Operating income	$	30,817	$	57,080

EMS net sales decreased by 9.2% in 2020 compared to 2019. The decrease in net sales was primarily driven by lower net sales in the general industrial, mass transit, consumer and automotive markets, partially offset by higher net sales in the EV/HEV and portable electronics markets. Net sales were not materially impacted by changes in foreign currencies.

The lower net sales in the automotive, mass transit and general industrial markets was largely due to the impacts of the COVID-19 pandemic.

We anticipate higher net sales in the EV/HEV market in 2021 driven by continued strong demand. Additionally, we anticipate a strong recovery in the automotive market in 2021 following industry disruptions that occurred in the first half of 2020 due to the COVID-19 pandemic. Lastly, we anticipate higher net sales in the portable electronics market in 2021 due to anticipated continuation of strong demand for 5G smartphones, tempered by the uncertain impacts from the fire at our UTIS manufacturing facility in early February 2021.

Operating income decreased by 46.0% in 2020 from 2019. As a result of the acceleration of amortization expense related to the DSP customer relationships and trademarks and trade names definite-lived other intangible assets, we recognized an additional $27.4 million of amortization expense in 2020. The decrease in operating income was also due to lower volume and unfavorable absorption of fixed overhead costs, offset by favorable product mix and lower fixed overhead costs. As a percentage of net sales, operating income in 2020 was 9.4%, an approximately 640 basis point decrease as compared to 15.8% in 2019.

The incremental direct costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as the additional safety supplies, impacted EMS operating income by approximately $1.9 million in 2020.

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The increase in amortization expense in 2020 from 2019 was due to the acceleration of amortization expense related to our DSP customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by December 31, 2020 due to an adjustment to their remaining useful lives. We recognized an additional $27.4 million of amortization expense in 2020 due to this acceleration. The increase in amortization expense in 2020 is offset by a decrease in forecasted amortization expense in future years. For additional information, refer to “Note 6 – Goodwill and Other Intangible Assets” to “Item 8. Financial Statements and Supplementary Data.”

Power Electronics Solutions

(Dollars in thousands)	2020		2019
Net sales	$	189,980	$	198,535
Operating income (loss)	$	(6,179)	$	(1,437)

PES net sales decreased by 4.3% in 2020 compared to 2019. The decrease in net sales was primarily driven by lower net sales in the mass transit, industrial power and vehicle electrification markets, partially offset by higher net sales in the EV/HEV and renewable energy markets. Net sales were favorably impacted by foreign currency fluctuations of $1.0 million, or 0.5%, due to the appreciation in value of the euro relative to the U.S. dollar.

The lower net sales in industrial power market in our PES operating segment was due to a slowdown in industrial automation demand due to the impacts of the COVID-19 pandemic combined with customer inventory rebalancing, which began in mid-2019 and continued through most of the first half of 2020. The lower net sales in the vehicle electrification market in our PES operating segment was due to the COVID-19 impacts on the automotive sector in the first half of 2020, partially offset by a recovery in the second half of 2020. We anticipate higher net sales in 2021 in the EV/HEV market driven by continued strong demand.

Operating loss increased by 330.0% in 2020 from 2019. The increase in operating loss was primarily due to $7.9 million of restructuring and impairment charges incurred in 2020, in addition to unfavorable product mix and lower volume, partially offset by favorable productivity performance, yield improvements, lower fixed overhead costs and favorable absorption of fixed overhead costs. As a percentage of net sales, operating loss in 2020 was 3.3%, an approximately 260 basis point increase as compared to 0.7% in 2019.

The incremental direct costs associated with the temporary additional benefits established under our dependent care, premium pay and sick pay programs in response to the COVID-19 pandemic, as well as the additional safety supplies, impacted PES operating loss by approximately $1.0 million in 2020.

Other

(Dollars in thousands)	2020		2019
Net sales	$	15,727	$	21,530
Operating income	$	4,494	$	6,184

Net sales in this segment decreased by 27.0% in 2020 from 2019. The decrease in net sales was primarily driven by a non-recurring last time buy in the Durel business in the first quarter of 2019, as well as lower demand in the automotive market partially resulting from the COVID-19 pandemic. Net sales were not materially impacted by changes in foreign currencies.

Operating income decreased by 27.3% in 2020 from 2019. The decrease in operating income was primarily due to lower volume and unfavorable absorption of fixed overhead costs, partially offset by lower fixed overhead costs. As a percentage of net sales, operating income in 2020 was 28.6%, an approximately 10 basis point decrease as compared to 28.7% in 2019.

Product and Market Development

Our research and development team is dedicated to growing our business by developing cost effective solutions that improve the performance of customers’ products and by identifying business and technology acquisition or development opportunities to expand our market presence.

Liquidity, Capital Resources and Financial Position

We believe that our existing sources of liquidity and cash flows that are expected to be generated from our operations, together with our available credit facilities, will be sufficient to fund our operations, currently planned capital expenditures, research and development efforts and our debt service commitments, for at least the next 12 months. We regularly review and evaluate the adequacy of our cash flows, borrowing facilities and banking relationships, seeking to ensure that we have the appropriate access to cash to fund both our near-term operating needs and our long-term strategic initiatives. The following table illustrates the location of our cash and cash equivalents by our three major geographic areas:

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	As of December 31,
(Dollars in thousands)	2020		2019
United States	$	21,657	$	39,354
Europe	55,449		31,166
Asia	114,679		96,329
Total cash and cash equivalents	$	191,785	$	166,849

Approximately $170.1 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of December 31, 2020. We did not make any changes in 2020 to our position on the permanent reinvestment of our historical earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, where a substantial portion of our Asia cash and cash equivalents are held, we continue to assert that historical foreign earnings are indefinitely reinvested.

Net working capital was $362.7 million and $363.9 million as of December 31, 2020 and 2019, respectively.

(Dollars in thousands)	As of December 31,
Key Financial Position Accounts:	2020		2019
Cash and cash equivalents	$	191,785	$	166,849
Accounts receivable, net	134,421		122,285
Inventories	102,360		132,859
Borrowings under revolving credit facility	25,000		123,000

Significant changes in our statement of financial position accounts from December 31, 2019 to December 31, 2020 were as follows:

•Accounts receivable, net increased 9.9% to $134.4 million as of December 31, 2020, from $122.3 million as of December 31, 2019. The increase from year-end was primarily due to higher net sales at the end of 2020 compared to at the end of 2019, as well as an increase in our income taxes receivable.

•Inventories decreased 23.0% to $102.4 million as of December 31, 2020, from $132.9 million as of December 31, 2019, primarily driven by a decline in inventory levels to align with our lower net sales volumes, as well as an increase in inventory reserve provision within the ACS and EMS operating segments and a reduction of capitalized variances associated with the timing of volumes produced versus sold relative to the end of 2019.

•Borrowings under revolving credit facility decreased 79.7% to $25.0 million as of December 31, 2020, from $123.0 million as of December 31, 2019. This was as a result of $248.0 million of discretionary principal payments on our revolving credit facility during the second, third and fourth quarters of 2020, partially offset by $150.0 million in borrowings under our revolving credit facility during the first quarter of 2020 as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic. For additional information regarding this facility, as well as the Third Amended Credit Agreement and the Fourth Amended Credit Agreement, refer to “Note 9 – Debt” to “Item 8. Financial Statements and Supplementary Data.”

(Dollars in thousands)	Year Ended December 31,
Key Cash Flow Measures:	2020		2019
Net cash provided by operating activities	$	165,056	$	161,323
Net cash used in investing activities	(40,385)		(48,963)
Net cash (used in) provided by financing activities	(104,189)		(111,843)

In 2020, cash and cash equivalents increased $24.9 million, primarily due to the $150.0 million in borrowings under our revolving credit facility and cash flows generated by operations, partially offset by $248.0 million of principal payments made on our outstanding borrowings on our revolving credit facility, $40.4 million in capital expenditures, as well as $5.4 million in tax payments related to net share settlement of equity awards.

In 2019, cash and cash equivalents decreased $0.9 million, primarily due to $105.5 million of principal payments made on our outstanding borrowings on our revolving credit facility, $51.6 million in capital expenditures, as well as $7.6 million in tax payments related to net share settlement of equity awards, almost entirely offset by cash flows generated by operations.

In 2021, we expect capital spending to be in the range of approximately $70.0 million to $80.0 million, which we plan to fund with cash from operations. This range does not incorporate any capital spending that may occur as a result of the fire that extensively damaged our UTIS manufacturing facility located in Ansan, South Korea, in early February 2021.

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Restriction on Payment of Dividends

The Fourth 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 total net leverage ratio does not exceed 2.75 to 1.00. If our total net 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. Our total net leverage ratio did not exceed 2.75 to 1.00 as of December 31, 2020. For additional information regarding the Fourth Amended Credit Agreement, refer to “Note 9 – Debt” to “Item 8. Financial Statements and Supplementary Data.”

Contractual Obligations

The following table summarizes our contractual obligations as of December 31, 2020.

	Payments Due by Period
	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
Operating lease obligations	$	4,741	$	2,342	$	2,394	$	5	$	—
Finance lease obligations	5,077		4,713		364		—		—
Interest payments on finance lease obligations	91		74		17		—		—
Inventory purchase obligations	60		60		—		—		—
Capital commitments(1)	5,330		5,330		—		—		—
Borrowings under revolving credit facility(2)	25,000		—		—		25,000		—
Interest payments on borrowings under revolving credit facility(3)	1,500		445		927		128		—
Other postretirement benefits	1,503		148		244		272		839
Total contractual obligations	$	43,302	$	13,112	$	3,946	$	25,405	$	839

(1)This amount represents non-cancelable vendor purchase commitments.

(2)All outstanding borrowings under our revolving credit facility are due on March 31, 2024.

(3)Estimated future interest payments are based on a leverage ratio based spread that ranges from 1.625% to 2.000%, plus projected forward 1-month LIBOR rates. Actual future interest payments could differ from those set forth here due to the expected phase-out of LIBOR by the end of 2021.

Other postretirement benefits, which amount to $1.5 million, are expected to be paid from operating cash flows. Other long-term liabilities, such as deferred taxes, unrecognized tax benefits and asbestos-related product liability reserves, have been excluded from the table due to the uncertainty of the timing of payments combined with the absence of historical trends to be used as a predictor for such payments.

Effects of Inflation

We do not believe that inflation had a material impact on our business, net sales, or operating results during the periods presented.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have, or are, in the opinion of management, reasonably likely to have, a current or future material effect on our results of operations or financial position.

Critical Accounting Estimates

Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles, which require management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances and believe that appropriate reserves have been established using on reasonable methodologies and appropriate assumptions based on facts and circumstances that are known; however, actual results may differ from these estimates under different assumptions or conditions. Certain accounting policies may require a choice between acceptable accounting methods or may require substantial judgment or estimation in their application. A summary of our critical accounting estimates is presented below:

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.

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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 its 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, 2020.

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 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 10.5% for EMS to 13.1% for ECD, and terminal growth rates ranging from 3.4% for curamik® to 4.2% for ACS. 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 for the year ended December 31, 2020. Our ACS, EMS, curamik® and ECD reporting units had allocated goodwill of $51.7 million, $143.0 million, $73.2 million and $2.2 million respectively, as of December 31, 2020.

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 an impairment charge is recognized for the excess and charged to operations. Consistent with historical practice, the annual impairment test on these reporting units was performed as of November 30, 2020. 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 for the year ended December 31, 2020. Our curamik® reporting unit had an indefinite-lived other intangible asset of $4.8 million as of December 31, 2020.

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 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 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 immaterial impairment charges resulting from our definite-lived other intangible assets impairment analysis for the year ended December 31, 2020. Our ACS, EMS and curamik® reporting units had definite-lived other intangible assets of $3.7 million, $101.2 million and $8.2 million, respectively, as of December 31, 2020.

The useful life determination for each indefinite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances support an indefinite useful life. The useful life determination for each definite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization.

Product Liabilities

We endeavor to maintain insurance coverage with reasonable deductible levels to protect us from potential exposures to product liability claims. Any liability associated with such claims is based on management’s best estimate of the potential claim value, while insurance receivables associated with related claims are not recorded until verified by the insurance carrier.

For asbestos-related claims, we recognize projected asbestos liabilities and related insurance receivables, with any difference between the liability and related insurance receivable recognized as an expense in the consolidated statements of operations. 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

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numerous assumptions, including 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, average indemnity costs, average defense costs, 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 assumptions are subject to even greater uncertainty as the projection period lengthens. 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.

The liability projection period covers all current and future indemnity and defense costs through 2064, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based 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 expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy.

Our accrued asbestos liabilities may not approximate our actual asbestos-related indemnity and defense costs, and our accrued insurance recoveries may not be realized. We believe it is reasonably possible that we may incur additional charges for our asbestos liabilities and defense costs in the future that could exceed existing reserves and insurance recoveries. We plan to continue to vigorously defend ourselves and believe we have substantial unutilized insurance coverage to mitigate future costs related to this matter.

We review our asbestos-related projections annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time we would analyze these projections. We believe the assumptions made on the potential exposure and expected insurance coverage are reasonable at the present time, but are subject to uncertainty based on the actual future outcome of our asbestos litigation.

As of December 31, 2020, the estimated liabilities and estimated insurance recoveries for all current and future indemnity and defense costs projected through 2064 were $73.2 million and $66.8 million, respectively.

Revenue Recognition

Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of our shipping terms permit us to recognize revenue at point of shipment. Some shipping terms require the goods to be cleared 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. Shipping and handling costs are treated as fulfillment costs. Sales tax or value added tax (VAT) are excluded from the measurement of the transaction price.

We manufacture some products to customer specifications which are customized to such a degree that it is unlikely that another entity would purchase these products or that we could modify these products for another customer. These products are deemed to have no alternative use to the Company whereby we have an enforceable right to payment evidenced by contractual termination clauses. In accordance with ASC 606, for those circumstances we recognize revenue on an over-time basis. Revenue recognition does not occur until the product meets the definition of “no alternative use” and therefore, items that have not yet reached that point in the production process are not included in the population of items with over-time revenue recognition.

As appropriate, we record estimated reductions to revenue for customer returns, allowances, and warranty claims. Provisions for such reductions are made at the time of sale and are typically derived from historical trends and other relevant information.

Pension and Other Postretirement Benefits

We sponsor one material defined benefit pension plan that covers certain union employees and we sponsor multiple fully insured or self-funded medical plans and fully insured life insurance plans for retirees. 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 rates of return on plan assets, mortality rates and other factors. The assumptions used were determined as follows: (i) the discount rate used is based on the PruCurve bond index, with comparisons against other similar indices; and (ii) the long-term rate of return on plan assets is determined based on historical portfolio results, market conditions and our expectations of future returns. We determine these assumptions based on consultation with outside actuaries and investment advisors. Any changes in these assumptions could have a significant impact on future recognized pension costs, assets and liabilities.

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The rates used to determine our costs and obligations under our pension and postretirement plans are disclosed in “Note 11 – Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan” to “Item 8. Financial Statements and Supplementary Data.” Each assumption has different sensitivity characteristics. For the year ended December 31, 2020, a 25 basis point decrease in the discount rate would have increased our pension expense for Rogers Corporation Employees’ Pension Plan (the Union Plan) by a de minimis amount. A 25 basis point decrease in the discount rate would have increased the other postretirement benefits expense by a de minimis amount. A 25 basis point decrease in the expected return on assets would have increased the total 2020 pension expense for the Union Plan by a de minimis amount. As the other postretirement benefit plans are unfunded, they would not be impacted by this assumption change.

Inventory Valuation

Inventories are stated at the lower of cost or net realizable value with costs determined primarily on a first-in first-out basis. We also maintain a reserve for excess, obsolete and slow-moving inventory that is primarily developed by utilizing both specific product identification and historical product demand as the basis for our analysis. Products and materials that are specifically identified as obsolete are fully reserved. In general, most products that have been held in inventory greater than one year are fully reserved unless there are mitigating circumstances, including forecasted sales or current orders for the product. The remainder of the allowance is based on our estimates and fluctuates with market conditions, design cycles and other economic factors. Risks associated with this allowance include unforeseen changes in business cycles that could affect the marketability of certain products and an unexpected decline in current production. We closely monitor the marketplace and related inventory levels and have historically maintained reasonably accurate allowance levels. Our obsolescence reserve has ranged from 9% to 18% of gross inventory over the last three fiscal years.

Equity Compensation

Determining the amount of equity compensation expense to be recorded requires us to develop estimates to be used in calculating the grant-date fair value of performance-based restricted stock units.

Performance-Based Restricted Stock Units

As of December 31, 2020, we had performance-based restricted stock units from 2020, 2019 and 2018 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 measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The 2020, 2019 and 2018 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. The TSR measurement criteria of the awards is considered a market condition. As such, the fair value of this measurement criteria was determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.

Below were the assumptions used in the Monte Carlo calculation for each material award granted in 2020, 2019 and 2018:

	February 12, 2020	June 3, 2019	February 7, 2019	September 17, 2018	February 8, 2018
Expected volatility	41.0%	39.7%	36.7%	36.6%	34.8%
Expected term (in years)	2.9	2.6	2.9	3.0	3.0
Risk-free interest rate	1.41%	1.78%	2.43%	2.85%	2.28%

Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility.

Expected term – We use the measurement 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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

•Foreign Currency Risk

Our financial results are affected by changes in foreign exchange rates and economic conditions in foreign countries in which we operate. Our primary overseas markets are in Europe and Asia, thus exposing us to exchange rate risk from fluctuations in the euro, the Chinese renminbi and certain other currencies used in Asia. We seek to mitigate exposure to variability in currency exchange rates, when possible, through the use of natural hedges, whereby purchases and sales in the same foreign currency and with similar maturity dates offset one another. We further seek to mitigate this exposure through hedging activities by entering into foreign exchange forward contracts with third parties when the use of natural hedges is not possible or desirable. We currently do not use derivative instruments for trading or speculative purposes. We monitor foreign exchange risks and at times manage such risks on specific transactions. Our risk management process primarily uses analytical techniques and sensitivity analysis. In 2020, a 10% strengthening of the U.S. dollar relative to other currencies would have resulted in a decrease to net sales and net income of approximately $32 million and $7 million, respectively, while a 10% weakening of the U.S. dollar relative to other currencies would have resulted in an increase to net sales and net income of approximately $39 million and $7 million, respectively.

•Interest Rate Risk

As of December 31, 2020, we had $25.0 million in borrowings outstanding under our revolving credit facility. The interest charged on these borrowings fluctuates with movements in the benchmark LIBOR. As of December 31, 2020, the effective all-in rate of interest on our revolving credit facility was 1.77%, and a 100 basis point increase in LIBOR would have increased the amount of interest expense by approximately $1.0 million for the year ended December 31, 2020.

•Commodity Risk

We are subject to fluctuations in the cost of raw materials used to manufacture our materials and products. In particular, we are exposed to market fluctuations in commodity pricing as we utilize certain materials, such as copper and ceramic, which are key materials in certain of our products. In order to minimize the risk of market driven price changes in these commodities, we utilize hedging strategies to insulate us against price fluctuations of copper, the most frequently used commodity in our manufacturing processes. We currently do not use hedging strategies to minimize the risk of price fluctuations on other commodity-based raw materials; however, we regularly review such strategies to hedge market risk on an ongoing basis.

For additional discussion, refer to “Note 2 – Fair Value Measurements” and “Note 3 – Hedging Transactions and Derivative Financial Instruments” to “Item 8. Financial Statements and Supplementary Data.”

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Item 8. Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Rogers Corporation

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of Rogers Corporation and its subsidiaries (the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2020, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2020 appearing under Item 8 (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Goodwill Impairment Assessment - curamik® Reporting Unit

As described in Notes 1 and 6 to the consolidated financial statements, the Company’s consolidated goodwill balance was $270.2 million as of December 31, 2020, and the goodwill associated with the curamik® reporting unit was $73.2 million. Goodwill is tested for impairment annually as of November 30 and between annual impairment tests if events or changes in circumstances indicate the carrying value may be impaired. 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. Management estimated the fair value of the curamik® reporting unit using an income approach based on the present value of future cash flows through a five year discounted cash flow analysis. 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 rate, terminal growth rate and future market conditions, among others.

The principal considerations for our determination that performing procedures relating to the goodwill impairment assessment of the curamik® reporting unit is a critical audit matter are (i) the significant judgment by management when determining the fair value measurement of the reporting unit; and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s significant assumptions related to financial projections for net sales and gross margin.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including controls over the valuation of the Company’s reporting units. These procedures also included, among others (i) testing management’s process for determining the fair value measurement of the curamik® reporting unit; (ii) evaluating the appropriateness of the discounted cash flow analysis; (iii) testing the completeness and accuracy of underlying data used in the analysis; and (iv) evaluating the reasonableness of significant assumptions used by management related to the financial projections for net sales and gross margin. Evaluating management’s assumptions related to the financial projections for net sales and gross margin involved evaluating whether the assumptions used were reasonable considering (i) the current and past performance of the reporting unit, (ii) the consistency with external market and industry data, and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit.

Asbestos-Related Liabilities and Insurance Receivables

As described in Notes 1 and 12 to the consolidated financial statements, the Company’s consolidated asbestos-related liabilities and asbestos-related insurance receivables balances were $73.2 million and $66.8 million, respectively, as of December 31, 2020. Management reviews the asbestos-related projections annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time management would analyze these projections. Management recognizes 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, management records asbestos-related insurance receivables that are deemed probable. Estimates of asbestos-related contingent liabilities and related insurance receivables are based on an independent actuarial analysis and an independent insurance usage analysis, respectively, prepared annually by third parties. The actuarial analysis contains numerous assumptions, 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, average indemnity costs, average defense costs, 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. 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.

The principal considerations for our determination that performing procedures relating to asbestos-related liabilities and insurance receivables is a critical audit matter are (i) the significant judgment by management when determining the asbestos-

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related liabilities and insurance receivables; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the number of claims that might be received, type and severity of the disease alleged by each claimant, average indemnity costs, average defense costs, and dismissal rates; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the analyses of the asbestos-related liabilities and insurance receivables. These procedures also included, among others (i) testing management’s process for determining the asbestos-related liabilities and insurance receivables estimates; (ii) evaluating the appropriateness of the actuarial and insurance usage analyses; (iii) testing the completeness and accuracy of underlying data used in the analyses; and (iv) evaluating the reasonableness of significant assumptions used by management related to the number of claims that may be received, type and severity of the disease alleged by each claimant, average indemnity costs, average defense costs, and dismissal rates. Professionals with specialized skill and knowledge were used to assist in the evaluation of management’s analyses and significant assumptions related to the number of claims that may be received, the type and severity of the disease alleged by each claimant, average indemnity costs, average defense costs, and dismissal rates.

/s/ PricewaterhouseCoopers LLP

Phoenix, Arizona

February 18, 2021

We have served as the Company’s auditor since 2015.

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ROGERS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

For each of the fiscal years in the three-year period ended December 31, 2020

(Dollars and shares in thousands, except per share amounts)	2020		2019		2018
Net sales	$	802,583	$	898,260	$	879,091
Cost of sales	510,763		583,968		568,308
Gross margin	291,820		314,292		310,783
Selling, general and administrative expenses	182,283		168,682		164,046
Research and development expenses	29,320		31,685		33,075
Restructuring and impairment charges	12,987		2,485		4,038
Other operating (income) expense, net	(104)		959		(3,087)
Operating income	67,334		110,481		112,711
Equity income in unconsolidated joint ventures	4,877		5,319		5,501
Pension settlement charges	(55)		(53,213)		—
Other income (expense), net	3,513		(592)		(994)
Interest expense, net	(7,135)		(6,869)		(6,629)
Income before income tax expense	68,534		55,126		110,589
Income tax expense	18,544		7,807		22,938
Net income	$	49,990	$	47,319	$	87,651
Basic earnings per share	$	2.68	$	2.55	$	4.77
Diluted earnings per share	$	2.67	$	2.53	$	4.70
Shares used in computing:
Basic earnings per share	18,681		18,573		18,374
Diluted earnings per share	18,706		18,713		18,659

The accompanying notes are an integral part of the consolidated financial statements.

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ROGERS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For each of the fiscal years in the three-year period ended December 31, 2020

(Dollars in thousands)	2020		2019		2018
Net income	$	49,990	$	47,319	$	87,651
Foreign currency translation adjustment	24,907		(4,990)		(12,505)
Pension and other postretirement benefits:
Pension settlement (benefits) charges, net of tax (Note 4)	(48)		43,934		—
Actuarial net gain (loss) incurred, net of tax (Note 4)	1,255		(6,079)		(1,678)
Amortization of loss, net of tax (Note 4)	244		390		176
Derivative instrument designated as cash flow hedge:
Change in unrealized (loss) gain before reclassifications, net of tax (Note 4)	(1,504)		(1,171)		519
Unrealized loss (gain) reclassified into earnings, net of tax (Note 4)	2,476		(155)		(191)
Other comprehensive income (loss)	27,330		31,929		(13,679)
Comprehensive income	$	77,320	$	79,248	$	73,972

The accompanying notes are an integral part of the consolidated financial statements.

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ROGERS CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As of December 31,
(Dollars and share amounts in thousands, except par value of capital stock)	2020		2019
Assets
Current assets
Cash and cash equivalents	$	191,785	$	166,849
Accounts receivable, less allowance for credit losses of $1,682 and $1,691	134,421		122,285
Contract assets	26,575		22,455
Inventories	102,360		132,859
Prepaid income taxes	2,960		4,524
Asbestos-related insurance receivables, current portion	2,986		4,292
Other current assets	13,088		10,838
Total current assets	474,175		464,102
Property, plant and equipment, net of accumulated depreciation of $365,844 and $341,119	272,378		260,246
Investments in unconsolidated joint ventures	15,248		16,461
Deferred income taxes	28,667		17,117
Goodwill	270,172		262,930
Other intangible assets, net of amortization	118,026		158,947
Pension assets	5,278		12,790
Asbestos-related insurance receivables, non-current portion	63,807		74,024
Other long-term assets	16,254		6,564
Total assets	$	1,264,005	$	1,273,181
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	35,987	$	33,019
Accrued employee benefits and compensation	41,708		29,678
Accrued income taxes payable	8,558		10,649
Asbestos-related liabilities, current portion	3,615		5,007
Other accrued liabilities	21,641		21,872
Total current liabilities	111,509		100,225
Borrowings under revolving credit facility	25,000		123,000
Pension and other postretirement benefits liabilities	1,612		1,567
Asbestos-related liabilities, non-current portion	69,620		80,873
Non-current income tax	16,346		10,423
Deferred income taxes	8,375		9,220
Other long-term liabilities	10,788		13,973
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,677 and 18,577 shares issued and outstanding, respectively	18,677		18,577
Additional paid-in capital	147,961		138,526
Retained earnings	873,692		823,702
Accumulated other comprehensive loss	(19,575)		(46,905)
Total shareholders' equity	1,020,755		933,900
Total liabilities and shareholders' equity	$	1,264,005	$	1,273,181

The accompanying notes are an integral part of the consolidated financial statements.

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ROGERS CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For each of the fiscal years in the three-year period ended December 31, 2020

(Dollars and share amounts in thousands)	2020		2019		2018
Capital Stock
Balance, beginning of period	$	18,577	$	18,395	$	18,255
Shares issued for vested restricted stock units, net of shares withheld for taxes	82		144		117
Stock options exercised	—		11		22
Shares issued for employee stock purchase plan	13		15		12
Shares issued to directors	5		12		12
Shares repurchased	—		—		(23)
Balance, end of period	18,677		18,577		18,395
Additional Paid-In Capital
Balance, beginning of period	138,526		132,360		128,933
Shares issued for vested restricted stock units, net of shares withheld for taxes	(5,439)		(7,694)		(6,717)
Stock options exercised	—		333		839
Shares issued for employee stock purchase plan	1,347		1,234		1,070
Shares issued to directors	(5)		(12)		(12)
Equity compensation expense	13,532		12,305		11,223
Shares repurchased	—		—		(2,976)
Balance, end of period	147,961		138,526		132,360
Retained Earnings
Balance, beginning of period	823,702		776,403		684,540
Net income	49,990		47,319		87,651
Cumulative-effect adjustment for lease accounting	—		(20)		—
Cumulative-effect adjustment for revenue recognition	—		—		4,212
Balance, end of period	873,692		823,702		776,403
Accumulated Other Comprehensive Loss
Balance, beginning of period	(46,905)		(78,834)		(65,155)
Other comprehensive income (loss)	27,330		31,929		(13,679)
Balance, end of period	(19,575)		(46,905)		(78,834)
Total Shareholders’ Equity	$	1,020,755	$	933,900	$	848,324

The accompanying notes are an integral part of the consolidated financial statements.

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ROGERS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

For each of the fiscal years in the three-year period ended December 31, 2020

(Dollars in thousands)	2020		2019		2018
Operating Activities:
Net income	$	49,990	$	47,319	$	87,651
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	71,425		49,162		50,073
Equity compensation expense	13,532		12,305		11,223
Deferred income taxes	(13,406)		(17,549)		(3,325)
Equity in undistributed income of unconsolidated joint ventures	(4,877)		(5,319)		(5,501)
Dividends received from unconsolidated joint ventures	7,075		5,375		4,431
Pension settlement charges	(63)		53,213		—
Pension and other postretirement benefits	(160)		(943)		(1,552)
Asbestos-related charges	(682)		1,720		704
Loss (gain) on sale or disposal of property, plant and equipment	41		756		(164)
Impairment charges	639		1,537		1,506
Provision (benefit) for credit losses	223		437		236
Changes in assets and liabilities:
Accounts receivable	(8,934)		20,677		(3,824)
Contract assets	(4,120)		273		(22,728)
Inventories	34,687		(1,200)		(19,013)
Pension and postretirement benefit contributions	(253)		(103)		(25,354)
Other current assets	(217)		(1,519)		(648)
Accounts payable and other accrued expenses	10,084		(9,139)		(7,886)
Other, net	10,072		4,321		991
Net cash provided by operating activities	165,056		161,323		66,820
Investing Activities:
Acquisition of business, net of cash received	—		—		(77,969)
Isola asset acquisition	—		—		(43,434)
Capital expenditures	(40,385)		(51,597)		(47,115)
Proceeds from the sale of property, plant and equipment, net	—		9		1,081
Return of capital from unconsolidated joint ventures	—		2,625		—
Net cash used in investing activities	(40,385)		(48,963)		(167,437)
Financing Activities:
Proceeds from borrowings under revolving credit facility	150,000		—		102,500
Line of credit issuance costs	(1,862)		—		—
Repayment of debt principal and finance lease obligations	(248,330)		(105,886)		(6,162)
Payments of taxes related to net share settlement of equity awards	(5,357)		(7,550)		(6,600)
Proceeds from the exercise of stock options, net	—		344		861
Proceeds from issuance of shares to employee stock purchase plan	1,360		1,249		1,082
Share repurchases	—		—		(2,999)
Net cash (used in) provided by financing activities	(104,189)		(111,843)		88,682
Effect of exchange rate fluctuations on cash	4,454		(1,406)		(1,486)
Net decrease in cash and cash equivalents	24,936		(889)		(13,421)
Cash and cash equivalents at beginning of period	166,849		167,738		181,159
Cash and cash equivalents at end of period	$	191,785	$	166,849	$	167,738
Supplemental Disclosures:
Accrued capital additions	$	715	$	3,420	$	2,744
Cash paid during the year for:
Interest, net of amounts capitalized	$	7,251	$	7,762	$	7,040
Income taxes	$	29,983	$	17,593	$	29,161

The accompanying notes are an integral part of the consolidated financial statements.

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ROGERS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Basis of Presentation, Organization and Summary of Significant Accounting Policies

As used herein, the terms “Company,” “Rogers,” “we,” “us,” “our” and similar terms mean Rogers Corporation and its consolidated subsidiaries, unless the context indicates otherwise.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, after elimination of intercompany balances and transactions. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States (U.S. GAAP), 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 three strategic 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 infrastructure (e.g., power amplifiers, antennas and small cells), automotive (e.g., ADAS, telematics and thermal solutions), aerospace and defense (e.g. antenna systems, communication systems and phased array radar systems), connected devices (e.g., mobile internet devices and thermal solutions) and wired infrastructure (e.g., computing and IP infrastructure) markets. We believe these products have characteristics that offer performance and other functional advantages in many market applications that serve to differentiate our products from other commonly available materials. ACS products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits. Trade names for our ACS products include: RO4000® Series, RO3000® Series, RT/duroid®, CLTE Series®, TMM®, AD Series®, DiClad® Series, CuClad® Series, Kappa®, COOLSPAN®, TC Series®, 92ML™, IsoClad® Series, MAGTREX™, XTremeSpeed RO1200™ Laminates, IM Series™, 2929 Bondply, 3001 Bondply Film and SpeedWave™ Prepreg. As of December 31, 2020, our ACS operating segment had 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 engineered material solutions for a wide variety of applications and markets. These include polyurethane and silicone materials used in cushioning, gasketing and sealing, and vibration management applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense, footwear and impact mitigation and printing markets; customized silicones used in flex heater and semiconductor thermal applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive and aerospace and defense markets. We believe 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). Trade names for our EMS products include: PORON®, BISCO®, DeWAL®, ARLON®, eSorba®, Griswold®, XRD®, R/bak® and HeatSORB™.

As of December 31, 2020, our EMS operating segment had administrative and manufacturing facilities in Moosup, Connecticut; Rogers, Connecticut; Woodstock, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Ansan, South Korea; and Suzhou, China. We also own 50% of two unconsolidated joint ventures: (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 the INOAC facilities in Nagoya and Mie, Japan, and RIS has manufacturing facilities at Rogers’ facilities in Suzhou, China.

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Power Electronics Solutions

Our PES operating segment designs, develops, manufactures and sells ceramic substrate materials, busbars and cooling solutions for a variety of applications in EV/HEV, general industrial, mass transit, renewable energy, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik® trade name and our busbars under the ROLINX® trade name. As of December 31, 2020, our PES operating segment had manufacturing and administrative facilities in Evergem, Belgium; Eschenbach, Germany; Budapest, Hungary; and Suzhou, China.

Other

Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR® trade name and our floats under our NITROPHYL® trade name.

Summary of Significant Accounting Policies

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, both 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 2020 and losses of $0.9 million and $0.7 million in 2019 and 2018, respectively.

Allowance for Credit Losses

In 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, we changed our impairment model to utilize a current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including our accounts receivable. CECL estimates on accounts receivable are recorded as selling, general and administrative expenses on our consolidated statements of operations. The cumulative effect adjustment from adoption was immaterial to our consolidated financial statements.

The allowance for credit losses 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 our 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.

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Our “Inventories” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Raw materials	$	44,976	$	61,338
Work-in-process	25,291		30,043
Finished goods	32,093		41,478
Total inventories	$	102,360	$	132,859

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:

Property, Plant and Equipment Classification	Estimated Useful Lives
Buildings and improvements	30-40 years
Machinery and equipment	5-15 years
Office equipment	3-10 years

Software Costs

We capitalize certain internal and external costs of computer software developed or obtained for internal use, principally related to software coding, software configuration, designing system interfaces and installation and testing of the software. We amortize capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three to five years. Net capitalized software and development costs were $0.3 million and $0.2 million for the years ended December 31, 2020 and 2019, 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 its 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, 2020.

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 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 10.5% for EMS to 13.1% for ECD, and terminal growth rates ranging from 3.4% for curamik® to 4.2% for ACS. 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 for the year ended December 31, 2020. Our ACS, EMS, curamik® and ECD reporting units had allocated goodwill of $51.7 million, $143.0 million, $73.2 million and $2.2 million respectively, as of December 31, 2020.

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 an impairment charge is recognized for the excess and charged to operations. Consistent with historical practice, the annual impairment test on these reporting units was performed as of November 30, 2020. The application of the annual indefinite-lived

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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 for the year ended December 31, 2020. The curamik® reporting unit had an indefinite-lived other intangible asset of $4.8 million as of December 31, 2020.

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 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 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 immaterial impairment charges resulting from our definite-lived other intangible assets impairment analysis for the year ended December 31, 2020. Our ACS, EMS and curamik® reporting units had definite-lived other intangible assets of $3.7 million, $101.2 million and $8.2 million, respectively, as of December 31, 2020.

The useful life determination for each indefinite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances support an indefinite useful life. The useful life determination for each definite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization.

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 review our asbestos-related projections annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time we would analyze these projections. We believe the assumptions made on the potential exposure and expected insurance coverage are reasonable at the present time, but are subject to uncertainty based on the actual future outcome of our asbestos litigation. 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 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, average indemnity costs, average defense costs, 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 assumptions are subject to even greater uncertainty as the projection period lengthens. 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 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. Given the inherent uncertainty in making projections, we plan to re-examine periodically the assumptions used in 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. Our accrued asbestos liabilities may not approximate our actual asbestos-related indemnity and defense costs, and our accrued insurance recoveries may not 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 that could exceed existing reserves and insurance recoveries.

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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 characteristics as of December 31, 2020, borrowings would generally bear interest at London interbank offered rate (LIBOR) plus 162.5 basis points. As the current borrowings under the Fourth Amended Credit Agreement bear interest at adjusted 1-month LIBOR plus 162.5 basis points, we believe the carrying value of our borrowings approximates fair value. For additional information on the calculation of fair value measurements, refer to “Note 2 – Fair Value Measurements.”

Hedging Transactions and Derivative Financial Instruments

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 (loss). 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.” For additional information, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

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. As of December 31, 2020 and 2019, there were no customers that individually accounted for more than 10% of total accounts receivable. We did not experience significant credit losses on customers’ accounts in 2020, 2019 or 2018.

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 U.S. and in numerous foreign jurisdictions. We account for income taxes following Accounting Standards Codification (ASC) 740, 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.

We did not make any changes in 2020 to our position on the permanent reinvestment of our historical earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, we continue to assert that historical foreign earnings are indefinitely reinvested. As of December 31, 2020 and 2019, we recorded a deferred tax liability of $2.4 million and $1.6 million, respectively, for Chinese withholding tax on undistributed earnings that are not indefinitely reinvested. The other remaining foreign subsidiaries have both the intent and ability to indefinitely reinvest their undistributed earnings and we estimate that, if these undistributed earnings are distributed, they may give rise to an estimated $3.8 million of additional tax liabilities. If circumstances change and it becomes apparent that some, or all of the undistributed earnings as of December 31, 2020 will not be indefinitely reinvested, the provision for the tax consequences, if any, will be recorded in the period when circumstances change. Distributions out of current and future earnings are permissible to fund discretionary activities such as business acquisitions. However, when distributions are made, this could result in a higher effective tax rate.

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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 item in the consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line item in the consolidated statements of financial position.

Revenue Recognition

Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of our shipping terms permit us to recognize revenue at point of shipment. Some shipping terms require the goods to be cleared 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. Shipping and handling costs are treated as fulfillment costs. Sales tax or VAT are excluded from the measurement of the transaction price.

Pension and Other Postretirement Benefits

We sponsor one material defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which covers certain union employees, and we sponsor multiple fully insured or self-funded medical plans and fully insured life insurance plans for retirees. The Union Plan was frozen in 2013 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 rates 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 bond index; (ii) the long-term rate of return on plan assets is determined based on historical portfolio results, market conditions and our expectations of future returns; 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 determine these assumptions based on consultation with outside actuaries and investment advisors. Any changes in these assumptions could have a significant impact on our assets and liabilities. We review these assumptions periodically throughout the year and update as necessary.

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 a plan’s obligations that determine our funded status as of the end of the 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 loss. Additionally, actuarial losses (gains) that are not immediately recognized as net periodic pension cost (credit) are recognized as a component of accumulated other comprehensive loss (income) and amortized into net periodic pension cost (credit) in future periods.

Investments were stated at fair value as of the dates reported. Securities traded on a national securities exchange were valued at the last reported sales price on the last business day of the plan year. Fixed-income bonds were valued using price evaluations provided by independent pricing services. 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 recordkeeper, on the last business day of the relevant 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 Company assets for investment purposes.

Restructuring Activities

We record charges associated with restructuring activities, such as employee termination benefits, which represent a one-time benefit, when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with restructuring activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs.

Advertising Costs

Advertising costs are expensed as incurred and amounted to $2.2 million, $3.6 million and $3.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

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Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

Equity Compensation

Equity compensation mainly consists of expense related to restricted stock units and deferred stock units.

Performance-based restricted stock unit compensation expense is based on achievement of both market and service conditions. The fair value of these awards is determined based on a Monte Carlo simulation valuation model on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards.

Time-based restricted stock unit compensation expense is based on the achievement of only service conditions. The fair value of these awards is determined based on the market value of the underlying stock price on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period.

Deferred stock units, which are granted to non-management directors, are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the director elects to defer the receipt of those shares. The fair value of these awards is determined based on the market value of the underlying stock price on the grant date. The compensation related to these grants is expensed immediately on the date of grant.

Note 2 – 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.

As a result of our pension termination and settlement efforts in late 2019 and the first half of 2020, we have a pension surplus investment balance, which is now accounted for as an available-for-sale investment as of June 2020. For additional information regarding this balance, refer to “Note 11 – Pension Benefits and Other Postretirement Benefits.” Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Available-for-Sale Investment at Fair Value as of December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,706	$	2,400	$	—	$	9,106

(1) This balance was invested in funds comprised of short-term cash and fixed income securities, and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of December 31, 2020, the fair value of this investment approximated its carrying value.

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From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts, copper derivative contracts and interest rate swaps. 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, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(130)	$	—	$	(130)
Copper derivative contracts	$	—	$	4,785	$	—	$	4,785
Interest rate swap contract	$	—	$	—	$	—	$	—

	Derivative Instruments at Fair Value as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(6)	$	—	$	(6)
Copper derivative contracts	$	—	$	1,147	$	—	$	1,147
Interest rate swap contract	$	—	$	(1,254)	$	—	$	(1,254)

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item.

For additional information on our derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

Note 3 – 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, commodity pricing risk (primarily related to copper) and 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 option 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, which are collectively a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate and volatility. 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 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.

•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, 2019, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge, and the hedge was highly effective.

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Foreign Currency

In 2020, we entered into U.S. dollar, euro, Korean won and Japanese yen 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 in the period in which the adjustment occurred.

As of December 31, 2020 the notional values of these foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	28,766,855
EUR/USD	€	8,151,124
KRW/USD	₩	10,893,500,000

Commodity

As of December 31, 2020, we had 18 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 are intended to offset rising copper prices 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 in the period in which the adjustment occurred.

As of December 31, 2020, the volume of our copper contracts outstanding were as follows:

Volume of Copper Derivatives
January 2021 - March 2021	256 metric tons per month
April 2021 - June 2021	256 metric tons per month
July 2021 - September 2021	222 metric tons per month
October 2021 - December 2021	222 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. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million. As a result of the termination of the interest rate swap, there is an offsetting decrease in the forecasted interest expense, net over the remaining term of the now-terminated interest rate swap, which was set to expire in February 2022. For additional information regarding our revolving credit facility, refer to “Note 9 – Debt.”

Effects on Financial Statements

The following table presents the impact from these instruments on the statement of operations and statements of comprehensive income:

		Years Ended December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019		2018
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(1,981)	$	(779)	$	(333)
Copper Derivatives Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	3,610	$	(716)	$	(2,101)
Interest Rate Swap Contract
Contract designated as hedging instrument	Other comprehensive income (loss)	$	1,254	$	(1,715)	$	420

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Note 4 – Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component for each of the fiscal years in the two-year period ended December 31, 2020 were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Derivative Instrument Designated as Cash Flow Hedge(2)		Total
Balance as of December 31, 2018	$	(30,488)	$	(48,700)	$	354	$	(78,834)
Other comprehensive income (loss) before reclassifications	(4,990)		(6,079)		(1,171)		(12,240)
Amounts reclassified to earnings	—		44,324		(155)		44,169
Net other comprehensive income (loss) for period	(4,990)		38,245		(1,326)		31,929
Balance as of December 31, 2019	(35,478)		(10,455)		(972)		(46,905)
Other comprehensive income (loss) before reclassifications	24,907		1,255		(1,504)		24,658
Amounts reclassified to earnings	—		196		2,476		2,672
Net other comprehensive income (loss) for period	24,907		1,451		972		27,330
Balance as of December 31, 2020	$	(10,571)	$	(9,004)	$	—	$	(19,575)

(1) Net of taxes of $1,951, $2,368 and $9,984 for the years ended December 31, 2020, 2019 and 2018, respectively.

(2) Net of taxes of $0, $282 and ($106) for the years ended December 31, 2020, 2019 and 2018, respectively.

The impacts to the consolidated statements of operations related to items reclassified to earnings were as follows:

		Years Ended December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Amortization/settlement of pension and other postretirement benefits
	Pension settlement charges	$	63	$	(53,213)
	Other income (expense), net(1)	(315)		(504)
	Income tax (expense) benefit	56		9,393
	Net income	$	(196)	$	(44,324)
Unrealized gains (losses) on derivative instrument(2)
	Other income (expense), net	$	(3,191)	$	200
	Income tax (expense) benefit	715		(45)
	Net income	$	(2,476)	$	155

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. For additional details, refer to “Note 11 – Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan.”

(2) This relates to the derivative instrument designated as a cash flow hedge and held as of the end of the year for each year presented.

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Note 5 – Property, Plant and Equipment

Our “Property, plant and equipment, net” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Land and improvements	$	22,589	$	21,697
Buildings and improvements	155,669		165,968
Machinery and equipment	324,773		281,771
Office equipment	59,001		68,349
Property plant and equipment, gross	562,032		537,785
Accumulated depreciation	(365,844)		(341,119)
Property, plant and equipment, net	196,188		196,666
Equipment in process	76,190		63,580
Total property, plant and equipment, net	$	272,378	$	260,246

Depreciation expense was $29.3 million in 2020, $31.4 million in 2019 and $33.5 million in 2018.

Note 6 – Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the period ending December 31, 2020, by operating segment, were as follows:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2019	$	51,694	$	142,030	$	66,982	$	2,224	$	262,930
Foreign currency translation adjustment	—		991		6,251		—		7,242
December 31, 2020	$	51,694	$	143,021	$	73,233	$	2,224	$	270,172

Other Intangible Assets

The changes in the carrying amount of other intangible assets for the two-year period ending December 31, 2020, were as follows:

	December 31, 2020						December 31, 2019
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	150,863	$	72,014	$	78,849	$	149,317	$	39,018	$	110,299
Technology	83,469		53,540		29,929		80,938		45,190		35,748
Trademarks and trade names	12,039		8,149		3,890		11,994		4,361		7,633
Covenants not to compete	1,340		827		513		1,340		505		835
Total definite-lived other intangible assets	247,711		134,530		113,181		243,589		89,074		154,515
Indefinite-lived other intangible asset	4,845		—		4,845		4,432		—		4,432
Total other intangible assets	$	252,556	$	134,530	$	118,026	$	248,021	$	89,074	$	158,947

In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations.

Amortization expense was $42.1 million, $17.8 million and $16.5 million in 2020, 2019 and 2018, respectively. The estimated annual future amortization expense is $12.4 million, $11.9 million, $11.3 million, $10.0 million and $8.5 million in 2021, 2022, 2023, 2024 and 2025, respectively. These amounts could vary based on changes in foreign currency exchange rates.

The increase in amortization expense in 2020, and decrease in forecasted amortization expense in future years, were due to the acceleration of amortization expense related to our Diversified Silicone Products, Inc. (DSP) customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by

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December 31, 2020. As part of our ongoing assessment of the useful lives of our definite-lived other intangible assets, we reviewed the deterioration of our DSP business and identified significant customer attrition, a sustained substantial decrease in net sales, as well as the planned phase-out of the DSP trademark and trade name by December 2020. Based on these events and circumstances, we concluded an adjustment to the remaining useful lives of our DSP customer relationships and trademarks and trade names definite-lived other intangible assets was warranted.

The weighted average amortization period as of December 31, 2020, by definite-lived other intangible asset class, is presented in the table below:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	6.10
Technology	3.90
Trademarks and trade names	4.85
Covenants not to compete	1.27
Total definite-lived other intangible assets	5.45

Note 7 – Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:

	Years Ended December 31,
(Dollars and shares in thousands, except per share amounts)	2020		2019		2018
Numerator:
Net income	$	49,990	$	47,319	$	87,651
Denominator:
Weighted average shares outstanding - basic	18,681		18,573		18,374
Effect of dilutive shares	25		140		285
Weighted average shares outstanding - diluted	18,706		18,713		18,659
Basic earnings per share	$	2.68	$	2.55	$	4.77
Diluted earnings per share	$	2.67	$	2.53	$	4.70

Dilutive shares are calculated using the treasury stock method and primarily include unvested restricted stock units. Anti-dilutive shares are excluded from the calculation of diluted shares and diluted earnings per share. For 2020, 2019, and 2018, 8,454, 20,520 and 36,642 shares were excluded, respectively.

Note 8 – Capital Stock and Equity Compensation

Capital Stock

Our 2019 Long-Term Equity Compensation Plan, which was approved by our shareholders in May 2019, permits the granting of restricted stock units and certain other forms of equity awards to officers and other key employees. Under this plan, we also grant each non-management director deferred stock units, which permit non-management directors to receive, at a later date, one share of Rogers capital stock for each deferred stock unit, with no payment of any consideration by the director at the time the shares were received.

Shares of capital stock reserved for possible future issuance were as follows:

	As of December 31,
	2020	2019
Shares reserved for issuance under outstanding restricted stock unit awards	324,260	315,571
Deferred compensation to be paid in stock, including deferred stock units	12,715	7,681
Additional shares reserved for issuance under Rogers Corporation 2019 Long-Term Equity Compensation Plan	918,809	1,063,920
Shares reserved for issuance under the Rogers Corporation Global Stock Ownership Plan for Employees	78,678	91,670
Total	1,334,462	1,478,842

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Equity Compensation

Performance-Based Restricted Stock Units

As of December 31, 2020, we had performance-based restricted stock units from 2020, 2019 and 2018 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 measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The outstanding awards have one measurement criteria: the three-year total shareholder return (TSR) on our capital stock as compared to that of a specified group of peer companies. The TSR measurement criteria of the awards is considered a market condition. As such, the fair value of this measurement criteria is determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.

Below were the assumptions used in the Monte Carlo calculation for each material award granted in 2020, 2019 and 2018:

	February 12, 2020	June 3, 2019	February 7, 2019	September 17, 2018	February 8, 2018
Expected volatility	41.0%	39.7%	36.7%	36.6%	34.8%
Expected term (in years)	2.9	2.6	2.9	3.0	3.0
Risk-free interest rate	1.41%	1.78%	2.43%	2.85%	2.28%

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.

A summary of activity of the outstanding performance-based restricted stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	106,943	$	161.33	142,434	$	110.19	169,202	$	97.16
Awards granted	87,244	131.99		112,160	114.22		75,760	163.55
Stock issued	(75,486)	111.54		(135,032)	69.10		(81,230)	131.72
Awards forfeited	(7,642)	179.89		(12,619)	152.22		(21,298)	114.40
Awards outstanding as of December 31	111,059	$	170.84	106,943	$	161.33	142,434	$	110.19

We recognized $5.8 million, $5.0 million and $4.4 million of compensation expense related to performance-based restricted stock units for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $7.6 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 0.8 years.

Time-Based Restricted Stock Units

As of December 31, 2020, we had time-based restricted stock unit awards from 2020, 2019 and 2018 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. 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 subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of the Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur.

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A summary of activity of the outstanding time-based restricted stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	101,685	$	122.68	117,476	$	116.10	173,331	$	69.10
Awards granted	58,807	116.87		62,115	126.92		46,810	143.93
Stock issued	(50,868)	111.16		(68,111)	81.53		(82,921)	84.92
Awards forfeited	(7,482)	122.87		(9,795)	116.52		(19,744)	112.06
Awards outstanding as of December 31	102,142	$	120.16	101,685	$	122.68	117,476	$	116.10

We recognized $6.0 million, $5.8 million and $5.6 million of compensation expense related to time-based restricted stock units for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $7.5 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 0.9 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-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date.

A summary of activity of the outstanding deferred stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	7,150	$	170.89	8,400	$	108.86	9,250	$	109.48
Awards granted	10,400	108.88		5,950	183.40		8,400	108.86
Stock issued	(5,100)	183.40		(7,200)	108.86		(9,250)	109.48
Awards outstanding as of December 31	12,450	$	113.96	7,150	$	170.89	8,400	$	108.86

We recognized compensation expense related to deferred stock units of $1.1 million, $1.1 million and $0.9 million, for the years ended December 31, 2020, 2019 and 2018, respectively.

Note 9 – Debt

In February 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 increased the principal amount of our 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).

All obligations under the Third Amended Credit Agreement were guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Third Amended Credit Agreement (the Guarantors). The obligations were 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 grante 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 included, but were not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries. All revolving loans were due on the maturity date, February 17, 2022.

Borrowings under the Third Amended Credit Agreement could have been made as alternate base rate loans or euro-currency loans. Alternate base rate loans bore interest that included a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate was the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Reserve Bank of New York (NYFRB) Rate in effect on such day plus ½ of 1.0% and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day was not a business day, the immediately preceding business day)

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plus 1.0%. Euro-currency loans bore interest based on adjusted LIBOR plus a spread of 137.5 to 175.0 basis points, depending on our leverage ratio.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the 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.

The Third Amended Credit Agreement contained customary representations, warranties, covenants, mandatory prepayments and events of default under which our payment obligations could have been accelerated. If an event of default occurred, the lenders could have, among other things, terminated their commitments and declared all outstanding borrowings to be immediately due and payable together with accrued interest and fees. The financial covenants included 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 three fiscal quarters in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00.

The Third Amended Credit Agreement generally permitted us to pay cash dividends to our shareholders, provided that (i) no default or event of default had occurred and was continuing or would result from the dividend payment and (ii) our leverage ratio did not exceed 2.75 to 1.00. If our leverage ratio exceeded 2.75 to 1.00, we could 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 had occurred and was continuing or would result from the payments.

On October 16, 2020, we entered into the Fourth Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A, as administrative agent, and the lenders party thereto (the Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement amends and restates the Third Amended Credit Agreement, and provides for a revolving credit facility with up to a $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, in addition to a $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 Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement extends the maturity, the date on which all amounts borrowed or outstanding under the Fourth Amended Credit Agreement are due, from February 17, 2022 to March 31, 2024.

All obligations under the Fourth Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fourth Amended Credit Agreement (the Guarantors). The obligations are also secured by a Fourth Amended and Restated Pledge and Security Agreement, dated as of October 16, 2020, 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 our and the Guarantors’ non-real estate assets. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

Borrowings under the Fourth Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest at a base reference rate plus a spread of 62.5 to 100.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the NYFRB rate in effect on such day plus ½ of 1%, and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of December 31, 2020, the spread was 162.5 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Fourth Amended Credit Agreement, we are required to pay a quarterly fee of 25 to 35 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement contains customary representations and 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 total net leverage ratio of no more than 3.25 to 1.00, subject to a one-time election to increase the maximum total net 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. We are permitted to net up to $50.0 million of unrestricted domestic cash and cash equivalents against indebtedness in the calculation of the total net leverage ratio.

The Fourth 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 total net leverage ratio does not exceed 2.75 to 1.00. If our total net 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

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default has occurred and is continuing or would result from the payments. Our total net leverage ratio did not exceed 2.75 to 1.00 as of December 31, 2020.

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 was designated as a cash flow hedge and qualified for hedge accounting treatment. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million.

We borrowed $150.0 million under our revolving credit facility as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic, during the three months ended March 31, 2020. We did not borrow anything further under our revolving credit facility for the year ended December 31, 2020. We were not required to make any quarterly principal payments under the Third Amended Credit Agreement, nor are we required to make any quarterly principal payments under the Fourth Amended Credit Agreement, however, we made discretionary principal payments totaling $248.0 million, $105.5 million and $5.0 million on our revolving credit facility in 2020, 2019 and 2018, respectively. We had $25.0 million in outstanding borrowings under our revolving credit facility as of December 31, 2020.

We incurred interest expense on our outstanding debt, net of the impacts of our interest rate swap, of $6.5 million, $7.2 million, and $6.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. We incurred an unused commitment fee of $0.7 million for the year ended December 31, 2020, and $0.6 million for the years ended December 31, 2019 and 2018, respectively.

We had $2.3 million and $1.2 million of outstanding line of credit issuance costs as of December 31, 2020 and 2019, respectively, which will be amortized over the life of the Fourth Amended Credit Agreement. We recorded amortization expense of $0.6 million, $0.6 million and $0.6 million for the years ended December 31, 2020, 2019 and 2018, respectively, related to these deferred costs.

Note 10 – Leases

Finance Leases

We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease 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. Our finance lease obligation related to this facility was $4.5 million as of both December 31, 2020 and 2019. The finance lease right-of-use asset balance for this facility was $6.5 million and $6.3 million as of December 31, 2020 and 2019, respectively. Accumulated amortization related to our finance lease right-of-use assets was $4.5 million and $3.8 million as of December 31, 2020 and 2019, respectively. All other finance lease obligations, finance lease right-of-use assets and accumulated amortization were cumulatively immaterial as of December 31, 2020 and 2019.

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the years ended December 31, 2020 and 2019.

Operating Leases

We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.

Our expenses and payments for operating leases were as follows:

	Year Ended December 31,
(Dollars in thousands)	2020		2019		2018
Operating leases expense	$	3,257	$	3,119	$	3,850
Short-term leases expense	$	464	$	192	$	112
Payments on operating lease obligations	$	2,893	$	2,967	$	3,850

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Our assets and liabilities balances related to finance and operating leases reflected in the consolidated statements of financial position, were as follows:

		As of December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	7,017	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,216	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,755	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	322	$	4,140
Total finance lease obligations		$	5,077	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,275	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,219	$	2,334
Total operating lease obligations		$	4,494	$	4,677

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of December 31, 2020:

	Finance		Operating
(Dollars in thousands)	Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2021	4,787		2,435		(93)		2,342
2022	194		1,513		(101)		1,412
2023	187		788		(65)		723
2024	—		299		(40)		259
Thereafter	—		42		(37)		5
Total lease payments	5,168		5,077		(336)		4,741
Less: Interest	(91)		(259)		12		(247)
Present Value of Net Future Minimum Lease Payments	$	5,077	$	4,818	$	(324)	$	4,494

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.5 years
Weighted Average Discount Rate	3.07%	4.57%

Practical Expedients

We have elected to recognize lease payments in the consolidated statements of operations on a straight-line basis over the term of the lease for short-term leases. We also elected the package of practical expedients that allows us to carry forward the historical lease classification and accounting for indirect costs for any existing leases.

Note 11 – Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of December 31, 2019, we had two qualified noncontributory defined benefit pension plans. In June 2020, we completed the remaining settlement efforts for the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)), which had been terminated and substantially settled in late 2019. As of December 31, 2020, only the Union Plan, which was frozen and ceased accruing benefits, remained. There are no plans to terminate the Union Plan.

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Additionally, we sponsor other postretirement benefit plans including multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31st for each respective plan year.

Pension Plan Termination & Settlement

During the second quarter of 2019, following receipt of a determination letter from the Internal Revenue Service (IRS), the Company amended the Merged Plan to (a) terminate the Merged Plan (subject to discretionary approval by the Company’s Chief Executive Officer) and (b) add a lump sum distribution option in connection with the termination of the Merged Plan, if approved. The Company subsequently provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity.

On October 17, 2019, the Chief Executive Officer approved the termination of the Merged Plan. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution, for $123.3 million, with an initial cash settlement date of October 24, 2019, and a true-up cash settlement date of June 1, 2020. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020.

The lump sum distributions of $38.9 million, were all paid out prior to December 31, 2019. The Merged Plan paid an additional $1.3 million of monthly pension benefit payments subsequent to the annuity purchase date during the transition period ending December 31, 2019.

In addition, we recorded a total non-cash pre-tax settlement charge in connection with the termination of the Merged Plan of $53.2 million during the fourth quarter of 2019, as well as an immaterial non-cash pre-tax settlement benefit during the second quarter of 2020. This net settlement charge amount recognized included the immediate recognition into expense of the related unrecognized losses within “Accumulated other comprehensive loss” on the consolidated statements of financial position as of the plan termination date. The pension settlement charge during the fourth quarter of 2019 and the pension settlement benefit during the second quarter of 2020 were recognized in the “Pension settlement charges” line item in the consolidated statements of operations.

As of December 31, 2020, the remaining pension surplus investment balance was approximately $9.1 million. We plan on using a portion of the funds to pay plan expenses, and moving the remainder funds from the pension trust to a defined contribution plan trust, where they will be used to fund certain employer contributions and pay plan expenses. On July 27, 2020, we transferred $7.4 million of the pension surplus investment balance to a suspense account held within a trust for the Rogers Employee Savings and Investment Plan, a 401(k) plan for domestic employees.

Plan Assets and Plan Benefit Obligations

The following table summarizes the change in plan benefit obligations and changes in plan assets:

	Pension Benefits				Other Postretirement Benefits
(Dollars in thousands)	2020		2019		2020		2019
Change in plan benefit obligations:
Benefit obligation as of January 1	$	30,300	$	172,608	$	1,599	$	1,803
Service cost			—		56		61
Interest cost	908		5,641		40		59
Actuarial (gain) loss	491		23,797		—		(51)
Benefit payments	(1,647)		(9,262)		(192)		(273)
Pension settlements	237		(162,484)		—		—
Benefit obligation as of December 31	$	30,289	$	30,300	$	1,503	$	1,599
Change in plan assets:
Fair value of plan assets as of January 1	$	42,835	$	191,652	$	—	$	—
Actual return on plan assets	3,615		22,888		—		—
Employer contributions	—		41		192		273
Benefit payments	(1,647)		(9,262)		(192)		(273)
Transfer related to plan termination	(9,744)		—		—		—
Pension settlements	237		(162,484)		—		—
Fair value of plan assets as of December 31	$	35,296	$	42,835	$	—	$	—
Amount overfunded (underfunded)	$	5,007	$	12,535	$	(1,503)	$	(1,599)

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The decreases in our plan benefit obligations in 2020 and 2019 were primarily driven by benefit payments, partially offset by interest costs, actuarial losses and the termination and settlement of our Merged Plan benefit obligations.

Our pension-related balances reflected in the consolidated statements of financial position consisted of the following:

	Pension Benefits				Other Postretirement Benefits
	As of December 31,				As of December 31,
(Dollars in thousands)	2020		2019		2020		2019
Assets & Liabilities:
Non-current assets	$	5,278	$	12,790	$	—	$	—
Current liabilities	(14)		(5)		(148)		(282)
Non-current liabilities	(257)		(250)		(1,355)		(1,317)
Net assets (liabilities)	$	5,007	$	12,535	$	(1,503)	$	(1,599)
Accumulated Other Comprehensive Loss:
Net actuarial (loss) gain	$	(11,171)	$	(13,085)	$	119	$	54
Prior service benefit	—		—		97		209
Accumulated other comprehensive (loss) income	$	(11,171)	$	(13,085)	$	216	$	263

The projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets for the pension plan with a PBO or ABO in excess of its plan assets were immaterial as of December 31, 2020 and 2019.

The PBO, ABO, and fair value of plan assets for the pension plan with plan assets in excess of its PBO or ABO were $30.0 million, $30.0 million and $35.3 million, respectively, as of December 31, 2020. The PBO, ABO, and fair value of plan assets for the pension plans with plan assets in excess of their PBO or ABO were $30.0 million, $30.0 million and $42.8 million, respectively, as of December 31, 2019.

The PBO and ABO of plan assets for the other postretirement benefit plans with a PBO or ABO in excess of plan assets were both $1.5 million as of December 31, 2020. The PBO and ABO of plan assets for the other postretirement benefit plans with a PBO or ABO in excess of plan assets were both $1.6 million as of December 31, 2019. The other postretirement benefit plans did not have any plan assets as of December 31, 2020 or 2019.

Components of Net Periodic Benefit Cost (Credit)

The components of net periodic benefit cost (credit) were as follows:

	Pension Benefits						Other Postretirement Benefits
	Years Ended December 31,						Years Ended December 31,
(Dollars in thousands)	2020		2019		2018		2020		2019		2018
Service cost			$	—	$	—	$	56	$	61	$	73
Interest cost	908		5,641		6,758		40		59		62
Expected return of plan assets	(1,574)		(6,932)		(8,662)		—		—		—
Amortization of prior service credit	—		—		—		(112)		(1,011)		(1,602)
Amortization of net loss (gain)	427		1,514		1,828		—		—		—
Settlement charge	(63)		53,213		—		—		—		—
Net periodic benefit cost (credit)	$	(302)	$	53,436	$	(76)	$	(16)	$	(891)	$	(1,467)

Plan Assumptions

	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Weighted average assumptions used in benefit obligations:
Discount rate	2.50	%	3.25	%	1.75	%	2.75	%
Weighted average assumptions used in net periodic benefit costs:
Discount rate	3.25	%	4.25	%	2.75	%	3.75	%
Expected long-term rate of return on assets	4.53	%	4.69	%	—	%	—	%

For measurement purposes as of December 31, 2020, we assumed an annual health care cost trend rate of 6.50% for covered health care benefits for retirees pre-age 65 or post-age 65. The rate was assumed to decrease gradually by 0.25% annually until

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reaching 4.50% and remain at that level thereafter. For measurement purposes as of December 31, 2019, we assumed an annual health care cost trend rate of 6.75% for covered health care benefits for retirees pre-age 65 or post-age 65.

Our pension plan 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 consider future cash contributions to the plan as well as the potential of the portfolio underperforming the market. We set asset allocation target ranges based on current funding status and future projections in order to mitigate the portfolio performance risk while maintaining its funded status. Fixed income securities comprise a substantial percentage of our plan assets portfolio. As of December 31, 2020, we held approximately 90% fixed income and short-term cash securities and 10% equity securities in our portfolio, compared to December 31, 2019 when we held approximately 92% fixed income and short-term cash securities and 8% equity securities.

In determining our investment strategy and calculating the net benefit cost, we utilized an expected long-term rate of return on plan assets, which was developed based on several factors, including the plans’ asset allocation targets, the historical and projected performance on those asset classes, as well as the plan’s current asset composition. To justify our assumptions, we analyzed certain data points related to portfolio performance. Based on the historical returns and the projected future returns, we determined that a target return of 4.53% is appropriate for the current portfolio.

The following table presents the fair value of the pension plan net assets by asset category and level, within the fair value hierarchy, as of December 31, 2020 and 2019.

	Fair Value of Plan Assets as of December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Fixed income bonds	$	—	$	29,896	$	—	$	29,896
Mutual funds	3,535		—		—		3,535
Pooled separate accounts	—		518		—		518
Guaranteed deposit account	—		—		1,347		1,347
Total plan assets at fair value	$	3,535	$	30,414	$	1,347	$	35,296

	Fair Value of Plan Assets as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Fixed income bonds	$	—	$	27,704	$	—	$	27,704
Mutual funds	3,277		—		—		3,277
Pooled separate accounts	—		10,516		—		10,516
Guaranteed deposit account	—		—		1,338		1,338
Total plan assets at fair value	$	3,277	$	38,220	$	1,338	$	42,835

The following table presents a summary of changes in the fair value of the guaranteed deposit account’s Level 3 assets for the year ended December 31, 2020:

	Guaranteed Deposit Account
Balance as of January 1, 2020	$	1,338
Change in unrealized gain (loss)	34
Purchases, sales, issuances and settlements (net)	(25)
Balance as of December 31, 2020	$	1,347

Cash Flows

We were not required to make any contributions to our qualified noncontributory defined benefit pension plans in 2020 and 2019. We made a voluntary contribution of $25.0 million to the Merged Plan in 2018 as part of the proposed plan termination process. We made expected benefit payments for our defined benefit pension plans, as well as substantially settled the Merged Plan benefit obligations, through the utilization of plan assets for the funded pension plans in 2020 and 2019. As there is no funding requirement for the other postretirement benefit plans, we funded benefit payments, which were immaterial in 2020 and 2019, as incurred using cash from operations.

The benefit payments are based on the same assumptions used to measure our benefit obligations as of December 31, 2020. The following table sets forth the expected benefit payments to be paid for the pension plans and the other postretirement benefit plans:

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	Pension Benefits		Other Postretirement Benefits
2021	$	1,808	$	148
2022	$	1,758	$	114
2023	$	1,778	$	130
2024	$	1,770	$	122
2025	$	1,801	$	150
2026-2030	$	8,570	$	763

Employee Savings and Investment Plan

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 annual IRS limit of $19,000. Certain eligible participants are also allowed to contribute the maximum catch-up contribution per IRS regulations. We match each eligible employee’s annual pre-tax contributions at a rate of 100% for the first 1% of the employee’s salary and 50% for the next 5% of each employee’s salary 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 $4.9 million in 2020, $4.4 million in 2019 and $5.6 million in 2018.

Note 12 – Commitments and Contingencies

Environmental & Legal

We are currently engaged in the following environmental and legal proceedings:

Voluntary Corrective Action Program

Our location 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. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We have incurred aggregate remediation costs of $1.7 million through December 31, 2020, and the accrual for future remediation efforts is $0.9 million.

Asbestos

Overview

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 summarizes the change in number of asbestos claims outstanding during 2020 and 2019:

	2020	2019
Claims outstanding as of January 1	592	745
New claims filed	115	251
Pending claims concluded*	(146)	(404)
Claims outstanding as of December 31	561	592

* For the year ended December 31, 2020, 126 claims were dismissed and 20 claims were settled. For the year ended December 31, 2019, 373 claims were dismissed and 31 claims were settled. Settlements totaled approximately $5.4 million for the year ended December 31, 2020, compared to $5.0 million for the year ended December 31, 2019.

Impacts on Financial Statements

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.

The liability projection period covers all current and future indemnity and defense costs through 2064, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based on our history and experience with the claims data, the diminished volatility and consistency of observable claims data,

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the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy.

To date, the indemnity and defense costs of our asbestos-related product liability litigation have been substantially covered by insurance. Although we have exhausted coverage under some of our insurance policies, we believe that we have applicable primary, excess and/or umbrella coverage for claims arising with respect to most of the years during which we manufactured and marketed asbestos-containing products. 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 covered 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, and no carrier had informed us it intended to terminate the agreement. We expect to continue 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 are responsible for uninsured indemnity and defense costs, and for the years ended December 31, 2020 and December 31, 2019, we paid $0.4 million and $0.7 million, respectively, related to such costs.

The amounts recorded for the asbestos-related liability and the related insurance receivables are 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 U.S., could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded.

Changes recorded in the estimated liability and estimated insurance recovery based on the projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income. For the year ended December 31, 2020, we recognized income of $0.7 million, and for the years ended December 31, 2019 and 2018 expense of $1.7 million and $0.7 million, respectively. The benefit recognized in 2020 was primarily due to a favorable change in the defense cost assumptions. The expense recognized in 2019 was primarily due to an unfavorable change in the defense cost assumptions and the inclusion of non-mesothelioma cases in the cost projections, partially offset by a corresponding favorable change in our insurance recovery expectations. The expense recognized in 2018 was primarily due to an unfavorable change in the defense cost assumptions.

Our projected asbestos-related claims and insurance receivables were as follows:

	As of December 31,
(Dollars in millions)	2020		2019
Asbestos-related liabilities	$	73.2	$	85.9
Asbestos-related insurance receivables	$	66.8	$	78.3

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 will have a material adverse impact on our results of operations, financial position or cash flows.

Note 13 – Income Taxes

The “Income before income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	2020		2019		2018
Domestic	$	(4,371)	$	(18,711)	$	14,381
International	72,905		73,837		96,208
Total	$	68,534	$	55,126	$	110,589

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The “Income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	Current		Deferred		Total
2020
Domestic	$	5,340	$	(11,012)	$	(5,672)
International	26,610		(2,394)		24,216
Total	$	31,950	$	(13,406)	$	18,544
2019
Domestic	$	3,372	$	(16,827)	$	(13,455)
International	21,984		(722)		21,262
Total	$	25,356	$	(17,549)	$	7,807
2018
Domestic	$	(341)	$	(3,007)	$	(3,348)
International	26,604		(318)		26,286
Total	$	26,263	$	(3,325)	$	22,938

Deferred tax assets and liabilities as of December 31, 2020 and 2019, were comprised of the following:

(Dollars in thousands)	2020		2019
Deferred tax assets
Accrued employee benefits and compensation	$	6,199	$	5,730
Tax loss and credit carryforwards	17,644		17,761
Reserves and accruals	6,581		5,996
Operating leases	665		904
Capitalized research and development	14,167		11,343
Other	1,824		2,210
Total deferred tax assets	47,080		43,944
Less deferred tax asset valuation allowance	(9,250)		(14,625)
Total deferred tax assets, net of valuation allowance	37,830		29,319
Deferred tax liabilities
Depreciation and amortization	10,282		15,368
Postretirement benefit obligations	2,001		1,719
Unremitted earnings	2,426		1,624
Operating leases	714		908
Other	2,115		1,803
Total deferred tax liabilities	17,538		21,422
Net deferred tax asset (liability)	$	20,292	$	7,897

As of December 31, 2020, we had state net operating loss carryforwards ranging from $0.2 million to $4.7 million in various state taxing jurisdictions, which expire between 2022 and 2039 and approximately $8.4 million of credit carryforwards in Arizona, which will expire between 2021 and 2035. We also had $5.8 million of federal research and development (R&D) credit carryforwards that begin to expire in 2031. We believe that it is more likely than not that the benefit from certain of the state net operating loss, state R&D credits carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $8.0 million relating to these carryforwards. We currently have approximately $2.2 million of foreign tax credits that begin to expire in 2030.

We had a valuation allowance of $9.3 million as of December 31, 2020 and $14.6 million as of December 31, 2019, 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. In 2020, we released the valuation allowance of $5.3 million previously established against our R&D credit carryforwards as a result of our updated analysis, including current year utiliziation and updated future utilization. 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

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operating results or changes in carryforward periods could adversely impact the amount of deferred tax asset considered realizable.

Income tax expense differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows:

(Dollars in thousands)	2020		2019		2018
Tax expense at Federal statutory income tax rate	$	14,392	$	11,576	$	23,224
Impact of foreign operations	1,193		107		826
Foreign source income, net of tax credits	1,050		(2,248)		(197)
State tax, net of federal	(313)		(690)		121
Unrecognized tax benefits	5,800		543		(869)
U.S. Tax Reform	—		—		209
Equity compensation excess tax deductions	(791)		(2,902)		(2,238)
General business credits	(931)		(656)		(2,172)
Distribution related foreign taxes	2,332		1,240		1,916
Executive compensation limitation	900		589		801
Valuation allowance change (excluding U.S. Tax Reform)	(5,375)		(2,527)		602
Disproportionate tax effect of pension settlement charges	—		2,510		—
Other	287		265		715
Income tax expense (benefit)	$	18,544	$	7,807	$	22,938

Our effective income tax rate for 2020 was 27.1% compared to 14.2% for 2019. The 2020 rate increase was primarily due to the increase in current year accruals of reserves for uncertain tax positions, the decrease in foreign tax credits available to offset foreign source income, the decrease in excess tax deductions on stock-based compensation and higher tax impact on unremitted foreign earnings and profits, partially offset by the beneficial impact of changes in valuation allowance related to R&D credits and pre-tax mix across jurisdictions with disparate tax rates.

We did not make any changes in 2020 to our position on the permanent reinvestment of our historical earnings from foreign operations. With the exception of certain Chinese subsidiaries, we continue to assert that historical foreign earnings are indefinitely reinvested. As of December 31, 2020 and 2019, we had recorded a deferred tax liability of $2.4 million and $1.6 million, respectively, for Chinese withholding tax on undistributed earnings that are not indefinitely reinvested. The other remaining foreign subsidiaries have both the intent and ability to indefinitely reinvest their undistributed earnings and we estimate that, if these undistributed earnings are distributed, they may give rise to an estimated $3.8 million of additional tax liabilities. If circumstances change and it becomes apparent that some, or all of the undistributed earnings as of December 31, 2020 will not be indefinitely reinvested, the provision for the tax consequences, if any, will be recorded in the period when circumstances change. Distributions out of current and future earnings are permissible to fund discretionary activities such as business acquisitions. However, when distributions are made, this could result in a higher effective tax rate.

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2020 and December 31, 2019, were as follows:

(Dollars in thousands)	2020		2019
Beginning balance as of January 1	$	10,217	$	9,801
Gross increases - current period tax positions	5,417		3,139
Gross increases - tax positions in prior periods	46		—
Gross decreases - tax positions in prior periods	—		—
Foreign currency exchange	8		—
Lapse of statute of limitations	—		(2,723)
Ending balance as of December 31	$	15,688	$	10,217

Included in the balance of unrecognized tax benefits as of December 31, 2020 were $15.3 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, 2020 were $0.4 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognized interest accrued related to unrecognized tax benefit as income tax expense. Related to the unrecognized tax benefits noted above, as of December 31, 2020 and 2019, we had accrued potential interest and penalties of approximately $1.2

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million and $0.7 million, respectively. We have recorded a net income tax expense of $0.5 million during December 31, 2020 and net income tax expense of $0.2 million during 2019.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2016 through 2020 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 2016.

Note 14 – Operating Segment and Geographic Information

Our reporting structure is comprised of the following strategic operating segments: ACS, EMS and PES. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally.

Operating Segment Information

The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2020
Net sales - recognized over time	$	902	$	10,614	$	189,140	$	14,451	$	215,107
Net sales - recognized at a point in time	$	267,797	$	317,563	$	840	$	1,276	$	587,476
Total net sales	$	268,699	$	328,177	$	189,980	$	15,727	$	802,583
Operating income (loss)	$	38,202	$	30,817	$	(6,179)	$	4,494	$	67,334
Total assets	$	407,667	$	504,199	$	338,419	$	13,720	$	1,264,005
Capital expenditures	$	11,849	$	16,214	$	11,840	$	482	$	40,385
Depreciation & amortization	$	13,762	$	47,159	$	9,831	$	673	$	71,425
Investment in unconsolidated joint ventures	$	—	$	15,248	$	—	$	—	15,248
Equity income in unconsolidated joint ventures	$	—	$	4,877	$	—	$	—	$	4,877
December 31, 2019
Net sales - recognized over time	$	—	$	12,687	$	197,702	$	18,112	$	228,501
Net sales - recognized at a point in time	$	316,592	$	348,916	$	833	$	3,418	$	669,759
Total net sales	$	316,592	$	361,603	$	198,535	$	21,530	$	898,260
Operating income (loss)	$	48,654	$	57,080	$	(1,437)	$	6,184	$	110,481
Total assets	$	402,398	$	569,484	$	278,763	$	22,536	$	1,273,181
Capital expenditures	$	22,156	$	8,550	$	20,191	$	700	$	51,597
Depreciation & amortization	$	18,267	$	19,887	$	10,260	$	748	$	49,162
Investment in unconsolidated joint ventures	$	—	$	16,461	$	—	$	—	$	16,461
Equity income in unconsolidated joint ventures	$	—	$	5,319	$	—	$	—	$	5,319
December 31, 2018
Net sales - recognized over time	$	—	$	5,788	$	221,896	$	16,973	$	244,657
Net sales - recognized at a point in time	$	294,154	$	335,576	$	1,442	$	3,262	$	634,434
Total net sales	$	294,154	$	341,364	$	223,338	$	20,235	$	879,091
Operating income	$	33,827	$	52,502	$	19,648	$	6,734	$	112,711
Total assets	$	396,075	$	588,841	$	273,212	$	21,216	$	1,279,344
Capital expenditures	$	61,425	$	10,917	$	18,051	$	156	$	90,549
Depreciation & amortization	$	20,121	$	18,501	$	10,640	$	811	$	50,073
Investment in unconsolidated joint ventures	$	—	$	18,667	$	—	$	—	$	18,667
Equity income in unconsolidated joint ventures	$	—	$	5,501	$	—	$	—	$	5,501

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Operating Segment Net Sales by Geographic Area

The following table presents net sales by our operating segment operations by geographic area for the years indicated:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2020
United States	$	66,411	$	128,347	$	24,411	$	3,679	$	222,848
Other Americas	2,639		8,437		304		682		12,062
Total Americas	69,050		136,784		24,715		4,361		234,910
China	115,454		108,161		37,843		2,859		264,317
Other APAC	51,742		43,364		19,088		2,162		116,356
Total APAC	167,196		151,525		56,931		5,021		380,673
Germany	11,452		19,118		59,429		410		90,409
Other EMEA	21,001		20,750		48,905		5,935		96,591
Total EMEA	32,453		39,868		108,334		6,345		187,000
Total net sales	$	268,699	$	328,177	$	189,980	$	15,727	$	802,583
December 31, 2019
United States	$	63,753	$	160,918	$	31,874	$	4,507	$	261,052
Other Americas	3,348		9,208		365		913		13,834
Total Americas	67,101		170,126		32,239		5,420		274,886
China	153,127		95,653		40,391		6,086		295,257
Other APAC	60,457		55,402		23,401		2,920		142,180
Total APAC	213,584		151,055		63,792		9,006		437,437
Germany	15,912		13,702		57,761		573		87,948
Other EMEA	19,995		26,720		44,743		6,531		97,989
Total EMEA	35,907		40,422		102,504		7,104		185,937
Total net sales	$	316,592	$	361,603	$	198,535	$	21,530	$	898,260
December 31, 2018
United States	$	52,661	$	152,284	$	37,325	$	4,527	$	246,797
Other Americas	3,104		14,453		931		773		19,261
Total Americas	55,765		166,737		38,256		5,300		266,058
China	136,315		101,036		39,781		4,959		282,091
Other APAC	63,318		40,788		28,414		2,892		135,412
Total APAC	199,633		141,824		68,195		7,851		417,503
Germany	18,165		9,907		62,359		584		91,015
Other EMEA	20,591		22,896		54,528		6,500		104,515
Total EMEA	38,756		32,803		116,887		7,084		195,530
Total net sales	$	294,154	$	341,364	$	223,338	$	20,235	$	879,091

(1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to achieve a consistent application of revenue recognition, 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 providing 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 January 1, 2018, we adopted ASU 2014-09 retrospectively with the cumulative effect of applying the standard recognized at the date of implementation and without restatement of comparative periods. This application of the new standard resulted in an increase to the January 1, 2018 balance of retained earnings of approximately $4.2 million, net of tax.

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We manufacture some products to customer specifications which are customized to such a degree that it is unlikely that another entity would purchase these products or that we could modify these products for another customer. These products are deemed to have no alternative use to us whereby we have an enforceable right to payment evidenced by contractual termination clauses. In accordance with ASC 606, for those circumstances we recognize revenue on an over-time basis. Revenue recognition does not occur until the product meets the definition of “no alternative use” and therefore, items that have not yet reached that point in the production process are not included in the population of items with over-time revenue recognition.

As appropriate, we record estimated reductions to revenue for customer returns, allowances, and warranty claims. Provisions for such reductions are made at the time of sale and are typically derived from historical trends and other relevant information.

We had contract assets primarily related to unbilled revenue for revenue recognized related to products that are deemed to have no alternative use whereby we have the right to payment. Revenue is recognized in advance of billing to the customer in these circumstances as billing is typically performed at the time of shipment to the customer. The unbilled revenue is included in the contract assets on the consolidated statements of financial position.

Our contract assets by operating segment were as follows:

	As of December 31,
(Dollars in thousands)	2020		2019
Advanced Connectivity Solutions	$	750	$	—
Elastomeric Material Solutions	887		1,077
Power Electronics Solutions	23,449		19,471
Other	1,489		1,907
Total contract assets	$	26,575	$	22,455

We did not have any contract liabilities as of December 31, 2020 or 2019. No impairment losses were recognized for the years ended December 31, 2020 or 2019 on any receivables or contract assets arising from our contracts with customers.

Long-Lived Assets by Geographic Area

Our long-lived assets(1) by geographic area were as follows:

	As of December 31,
(Dollars in thousands)	2020		2019
United States	$	432,497	$	469,234
China	48,850		55,078
Germany	133,168		120,869
Other	46,061		36,942
Total long-lived assets	$	660,576	$	682,123

(1) Long-lived assets are based on the location of the asset and are comprised of goodwill, other intangible assets and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed.

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Note 15 – Supplemental Financial Information

Restructuring and Impairment Charges

The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Restructuring charges
Manufacturing footprint optimization	$	12,348	$	—	$	—
Facility consolidation	—		948		1,982
Global headquarters relocation	—		—		550
Restructuring charges	12,348		948		2,532
Impairment charges
Fixed assets impairment charges	587		1,537		1,506
Other impairment charges	52		—		—
Impairment charges	639		1,537		1,506
Total restructuring and impairment charges	$	12,987	$	2,485	$	4,038

Restructuring Charges - Manufacturing Footprint Optimization

During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our PES and ACS operating segments, in order to achieve greater cost competitiveness as well as align capacity with end market demand. We expect the majority of the restructuring activities to be completed by the end of the first half of 2021. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the year ended December 31, 2020:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance and Related Benefits
Balance as of December 31, 2019	$	—
Provisions	11,451
Payments	(819)
Foreign currency translation adjustment	371
Balance as of December 31, 2020	$	11,003

Restructuring Charges - Facility Consolidation & Global Headquarters Relocation

In 2018, we made the decision to consolidate our Santa Fe Springs, California operations into our facilities in Carol Stream, Illinois and Bear, Delaware. We recorded $0.9 million and $2.0 million of restructuring charges in 2019 and 2018, respectively, related to the facility consolidation. In 2017, we relocated our global headquarters from Rogers, Connecticut to Chandler, Arizona. We recorded $0.6 million of restructuring charges in 2018 related to the headquarters relocation.

Impairment Charges

We recognized $0.6 million of impairment charges in 2020, primarily related to fixed assets in Belgium pertaining to our ACS operating segment and a building lease in Hungary pertaining to our PES operating segment. We recognized $1.5 million of impairment charges in both 2019 and 2018 pertaining to our ACS operating segment, primarily on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition.

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Allocation of Restructuring and Impairment Charges to Operating Segments

The following table summarizes the allocation of restructuring and impairment charges to our operating segments:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Advanced Connectivity Solutions
Allocated restructuring charges	$	4,288	$	—	$	244
Allocated impairment charges	335		1,537		1,506
Elastomeric Material Solutions
Allocated restructuring charges	401		948		2,152
Allocated impairment charges	52		—		—
Power Electronics Solutions
Allocated restructuring charges	7,659		—		136
Allocated impairment charges	252		—		—
Total restructuring and impairment charges	$	12,987	$	2,485	$	4,038

Other Operating (Income) Expense, Net

The components of “Other operating (income) expense, net” were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Lease income	$	—	$	(989)	$	(948)
Depreciation on leased assets	—		1,907		3,512
Loss (gain) on sale or disposal of property, plant and equipment	41		756		(164)
Gain from antitrust litigation settlement	—		—		(4,231)
Indemnity claim settlements from acquisitions	—		(715)		(700)
Economic incentive grants	(145)		—		(556)
Total other operating (income) expense, net	$	(104)	$	959	$	(3,087)

In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018, we recognized lease income and related depreciation on leased assets of $1.0 million and $1.9 million, respectively, in 2019, and $0.9 million and $3.5 million, respectively, in 2018. In 2019, we recorded a gain of $0.7 million for the settlement of indemnity claims related to the Isola asset acquisition.

In 2018, we recorded a gain from the settlement of antitrust litigation in the amount of $4.2 million as a result of the settlement of a class action lawsuit, filed in 2005, which alleged that Dow Chemical Company and other urethane raw material suppliers unlawfully agreed to fix, raise, maintain or stabilize the prices of polyether polyol products sold in the U.S. from January 1, 1999 through December 31, 2004 in violation of the federal antitrust laws. We also recorded a gain of $0.7 million for the settlement of indemnity claims related to the DSP acquisition and income of $0.6 million from economic incentive grants related to the relocation of our global headquarters from Rogers, Connecticut to Chandler, Arizona.

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Interest Expense, Net

The components of “Interest expense, net” were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Interest on revolving credit facility	$	3,294	$	7,378	$	6,304
Interest rate swap settlements	3,191		(200)		(247)
Line of credit fees	715		576		573
Debt issuance amortization costs	593		552		552
Interest on finance leases	134		127		172
Interest income	(939)		(1,610)		(804)
Other	147		46		79
Total interest expense, net	$	7,135	$	6,869	$	6,629

Note 16 – Recent Accounting Standards

Recently Issued Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We adopted this ASU as of the effective date and will utilize the optional expedients to the extent they apply to us. Our revolving credit facility under the Fourth Amended Credit Agreement, which was entered into on October 16, 2020 and references LIBOR, contains certain provisions for alternative reference rates in the event LIBOR becomes unavailable. Additionally, we terminated our interest rate swap, which also referenced LIBOR, on September 30, 2020. As of December 31, 2020, we have no existing contracts or agreements that reference LIBOR, for which there is not an established alternative reference rate in anticipation of the phase out of LIBOR. As a result, we are unlikely to need to apply this guidance in the future.

In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method be applied for all convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either the modified retrospective or the retrospective approach. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements.

Recently Adopted Standards Reflected in Our 2020 Financial Statements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our consolidated financial statements.

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Note 17 – Quarterly Results of Operations (Unaudited)

	2020
(Dollars in thousands, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	198,810	$	191,157	$	201,944	$	210,672
Gross margin	$	65,630	$	69,969	$	75,518	$	80,703
Net income	$	13,259	$	14,520	$	7,006	$	15,205
Net income per share:
Basic	$	0.71	$	0.78	$	0.37	$	0.82
Diluted	$	0.71	$	0.78	$	0.37	$	0.81

	2019
(Dollars in thousands, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	239,798	$	242,852	$	221,842	$	193,768
Gross margin	$	85,394	$	85,828	$	78,867	$	64,203
Net income (loss)	$	28,399	$	24,293	$	23,387	$	(28,760)
Net income (loss) per share:
Basic	$	1.53	$	1.31	$	1.26	$	(1.55)
Diluted	$	1.52	$	1.30	$	1.25	$	(1.55)

Note 18 – Share Repurchases

In 2015, we initiated a share repurchase program (the Program) of up to $100.0 million of the Company’s capital stock. We initiated the 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, 2020, $49.0 million remained of our $100.0 million share repurchase program. There were no share repurchases in 2020.

We repurchased the following shares of capital stock through the Program, using cash from operations and cash on hand, during the years presented below:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Shares of capital stock repurchased	—		—		23,138
Value of capital stock repurchased	$	—	$	—	$	2,999

Note 19 - Subsequent Event

In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea. The site was safely evacuated and there were no reported injuries; however, there is extensive damage to the manufacturing site. The source of the fire is currently under investigation.

This facility manufactures eSorba® polyurethane foams used in portable electronics and display applications. These operations will be disrupted, but it is too early to determine the expected duration of the disruption.

We acquired the UTIS business in 2010, and we employ approximately 50 people at this site. The UTIS business represented less than 4% of our annual net sales in 2020. The impacts of this event on our results of operations, financial position and cash flows are unknown at this time due to the continuing assessment of the extent of the damage to our manufacturing site, the extent of the disruption to our business and the amounts of potential insurance recoveries.

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SCHEDULE II

(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 Credit Losses
December 31, 2020	$	1,691	$	223	$	(232)	$	—	$	1,682
December 31, 2019	$	1,354	$	437	$	(100)	$	—	$	1,691
December 31, 2018	$	1,525	$	189	$	(360)	$	—	$	1,354

(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, 2020	$	14,625	$	(39)	$	(5,336)	$	—	$	9,250
December 31, 2019	$	16,889	$	656	$	(2,920)	$	—	$	14,625
December 31, 2018	$	8,754	$	8,135	$	—	$	—	$	16,889

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d- 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of December 31, 2020. The Company’s disclosure controls and procedures are designed (i) to ensure that information required to be disclosed by it in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) to ensure that information required to be disclosed in the reports the Company files or submits under the Exchange Act is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2020.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company’s internal control over financial reporting during the fourth quarter of the fiscal year ended December 31, 2020 that have materially affected or are reasonably likely to materially affect its internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control over financial reporting was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Our internal control over financial reporting includes those policies and procedures that:

•pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

•provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

•provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2020. In making its assessment of internal control over financial reporting, management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on the results of this assessment, management, including our Chief Executive Officer and our Chief Financial Officer, has concluded that, as of December 31, 2020, our internal control over financial reporting was effective.

The Company’s independent registered public accounting firm, PricewaterhouseCoopers, LLP, has audited the effectiveness of the Company’s internal control over financial reporting as of December 31, 2020, as stated in their report included under “Item 8. Financial Statements and Supplementary Data.”

Item 9B. Other Information

None.

73

Part III

Item 10. Directors, Executive Officers and Corporate Governance

We are incorporating by reference the information with respect to the Directors, Executive Officers and Corporate Governance set forth under the captions “Nominees for Director: Qualifications and Experience” and “Board of Directors - Meetings of the Board and Committees” in our Definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, which we intend to file within 120 days after the end of our fiscal year pursuant to Section 14(a) of the Exchange Act. Information with respect to our executive officers is presented in Part I, Item 1 of this report and is hereby incorporated into this Item 10 by reference.

Code of Ethics

We have adopted a code of business conduct and ethics policy, which applies to all employees, officers and directors of Rogers Corporation. The Rogers Corporation Code of Business Conduct and Ethics Policy is posted on our website at http://www.rogerscorp.com. We intend to satisfy the disclosure requirements regarding any amendment to, or waiver of, a provision of the Code of Business Conduct and Ethics Policy for our principal executive officer, principal financial officer or principal accounting officer (or others performing similar functions) by posting such information on our website. Our website is not incorporated into or a part of this Form 10-K.

Item 11. Executive Compensation

We are incorporating by reference the information with respect to Executive Compensation set forth under the captions “Board of Directors - Directors’ Compensation”, “Board of Directors - Meetings of the Board and Committees”, “Compensation Discussion and Analysis”, “Compensation Discussion and Analysis - Compensation and Organization Committee Report”, “Executive Compensation Tables” and “CEO Pay Ratio” in our Definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, which we intend to file within 120 days after the end of our fiscal year pursuant to Section 14(a) of the Exchange Act.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The table and footnotes below describe those equity compensation plans approved and not approved by security holders of Rogers Corporation as of December 31, 2020.

	(a)	(b)
Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Number of securities remaining available for future issuance under each equity compensation plan excluding securities referenced in column (a)
Equity Compensation Plans Approved by Security Holders
Rogers Corporation 2009 Long-Term Equity Compensation Plan	160,952(1)	—(2)
Rogers Corporation 2019 Long-Term Equity Compensation Plan	175,758(3)	918,809
Rogers Corporation Global Stock Ownership Plan For Employees(4)	—	78,678
Equity Compensation Plans Not Approved by Security Holders
Rogers Corporation Stock Acquisition Program(5)	265	—
Total	336,975	997,487

(1) Consists of 159,752 shares for restricted stock units and 1,200 shares for deferred stock units.

(2) This plan expired in early February 2019.

(3) Consists of 164,508 shares for restricted stock units and 11,250 shares for deferred stock units.

(4) This is an employee stock purchase plan within the meaning of Section 432(b) of the Internal Revenue Code of 1986, as amended.

(5) The purpose of the Stock Acquisition Program was to enable non-management directors to acquire shares of Rogers’ capital stock in lieu of cash compensation, on either a current or deferred basis at the then current fair market value of such capital stock. For the periods covered by this report, the Company no longer offered capital stock to its directors under the Stock Acquisition Program.

We are incorporating by reference the information with respect to Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters set forth under the caption “Stock Ownership” in our Definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, which we intend to file within 120 days after the end of our fiscal year pursuant to Section 14(a) of the Exchange Act.

74

Item 13. Certain Relationships and Related Transactions, and Director Independence

We are incorporating by reference the information with respect to Certain Relationships and Related Transactions and Director Independence as set forth under the captions “Related Party Transactions” and “Board of Directors - Director Independence” in our Definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, which we intend to file within 120 days after the end of our fiscal year pursuant to Section 14(a) of the Exchange Act.

Item 14. Principal Accountant Fees and Services

We are incorporating by reference the information with respect to accountant fees and services set forth under the caption “Fees of Independent Auditor” in our Definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, which we intend to file within 120 days after the end of our fiscal year pursuant to Section 14(a) of the Exchange Act.

Part IV

Item 15. Exhibits, Financial Statement Schedules

(1) Financial Statements and Schedules.

The following consolidated financial statements of the Company are included in Item 8 of this Form 10-K:

Report of Independent Registered Public Accounting Firm

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income

Consolidated Statements of Financial Position

Consolidated Statements of Shareholders’ Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

(2) Financial Statement Schedules.

Schedule II - Valuation and Qualifying Accounts

Other than as set forth above, schedules are omitted because they are not applicable, or are not required, or because the information is included in the consolidated financial statements and notes thereto.

(3) Exhibits.

The following list of exhibits includes exhibits submitted with this Form 10-K as filed with the SEC and those incorporated by reference to other filings.

3.1    Restated Articles of Organization of Rogers Corporation, as amended, incorporated by reference to Exhibit 3a to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006.

3.2    Amended and Restated Bylaws of Rogers Corporation, effective February 11, 2016, incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on February 26, 2016.

4.1    Description of Capital Stock, incorporated by reference to Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the 2019 Form 10-K).

10.1    The Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Non-Management Directors, incorporated by reference to Exhibit 10i to the Registrant’s Quarterly Report on Form 10-Q filed November 8, 2007.**

10.1.1    First Amendment to the Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Non-Management Directors, incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q filed November 3, 2009.**

10.1.2    Second Amendment to the Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Non-Management Directors, incorporated by reference to Exhibit 10.5 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010 (the 2010 Form 10-K).**

10.2    The Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Key Employees, incorporated by reference to Exhibit 10j to the Registrant’s Quarterly Report on Form 10-Q filed November 8, 2007.**

75

10.2.1    First Amendment to the Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Key Employees, incorporated by reference to Exhibit 10j to the Registrant’s Quarterly Report on Form 10-Q filed August 7, 2008.**

10.2.2    Second Amendment to the Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Key Employees, incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q filed November 3, 2009.**

10.2.3    Third Amendment to the Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Key Employees, incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K filed February 17, 2010.**

10.2.4    Fourth Amendment to the Amended and Restated Rogers Corporation Voluntary Deferred Compensation Plan for Key Employees, incorporated by reference to Exhibit 10.6 to the 2010 Form 10-K .**

10.3    Rogers Corporation Amended and Restated Pension Restoration Plan, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed December 17, 2008.**

10.3.1    First Amendment to Rogers Corporation Amended and Restated Pension Restoration Plan, incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q filed November 3, 2009.**

10.3.2    Second Amendment to Rogers Corporation Amended and Restated Pension Restoration Plan, incorporated by reference to Exhibit 10.10 to the 2010 Form 10-K.**

10.4    Form of Indemnification Agreement between the Rogers Corporation and each of its executive officers, incorporated by reference to Exhibit 99.2 to the Registrant’s Current Report on Form 8-K on December 14, 2004.**

10.5    Form of Indemnification Agreement between the Rogers Corporation and each of its directors, incorporated by reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K on December 14, 2004.**

10.6    Rogers Corporation 2009 Long-Term Equity Compensation Plan, as amended, incorporated by reference to Exhibit B to the Registrant’s Definitive Proxy Statement filed on March 24, 2014.**

10.7    Form of Performance-Based Restricted Stock Award Agreement under the 2009 Plan, incorporated by reference to Exhibit 10.14 to the Registrant’s 2015 Form 10-K.**

10.8    Form of Time-Based Restricted Stock Unit Award Agreement under the 2009 Plan, incorporated by reference to Exhibit 10.16 to the Registrant’s 2015 Form 10-K.**

10.9    Rogers Corporation 2019 Long-Term Equity Compensation Plan, incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-8 filed on May 14, 2019.**

10.10    Form of Performance-Based Restricted Stock Unit Award Agreement under the 2019 Plan, incorporated by reference to Exhibit 10.10 to the 2019 Form 10-K.**

10.11    Form of Time-Based Restricted Stock Unit Award Agreement under the 2019 Plan, incorporated by reference to Exhibit 10.11 to the 2019 Form 10-K.**

10.12    Letter Agreement between the Registrant and Bruce D. Hoechner, dated September 15, 2011 and accepted on September 20, 2011, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed September 26, 2011.**

10.13    Letter Agreement between the Company and Michael M. Ludwig, dated August 28, 2018, incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed November 2, 2018.

10.14    Amended and Restated Employment Agreement between the Company and Helen Zhang, dated October 7, 2019, incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on October 31, 2019.**

10.15    Second Amended and Restated Employment Agreement between the Company and Helen Zhang, dated April 13, 2020, incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on May 1, 2020.

10.16    Rogers Corporation Deferred Compensation Plan, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 26, 2014.**

10.17    Rogers Corporation Severance Plan, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on February 13, 2019.**

76

10.18    Form of Participation Agreement for the Company’s U.S.-based named executive officers under the Rogers Corporation Severance Plan, incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on February 13, 2019.**

10.19    Third Amended and Restated Credit Agreement, dated as of February 17, 2017 among Rogers Corporation, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, HSBC Bank USA, National Association and Citizens Bank, N.A. as co-syndication agents, and Citibank, N.A. as documentation agent, incorporated by reference to Exhibit 10.24 to the Registrant’s Form 10-K for the fiscal year ended December 31, 2016.

10.20    Fourth Amended and Restated Credit Agreement dated as of October 16, 2020, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 16, 2020.

10.21    Form of Director Deferred Stock Unit Award Agreement under the 2009 Plan, incorporated by reference to Exhibit 10.19 to the 2019 Form 10-K.

10.22    Form of Director Deferred Stock Unit Award Agreement under the 2019 Plan, incorporated by reference to Exhibit 10.20 to the 2019 Form 10-K.

10.23    Letter Agreement between the Company and Peter Williams, dated June 11, 2019 and accepted on June 12, 2019, incorporated by reference to Exhibit 10.21 to the Registrant's Form 10-K for the fiscal year ended December 31, 2019.

10.24    Annual Incentive Compensation Plan, incorporated by reference to Exhibit A to the Registrant’s Proxy Statement filed on March 24, 2014.

10.25    Form of Time-Based Restricted Stock Unit Award Agreement for Bruce D. Hoechner, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on February 17, 2021.

10.26    Form of Performance-Based Restricted Stock Unit Award Agreement for Bruce D. Hoechner, incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on February 17, 2021.

21    Subsidiaries of the Registrant, filed herewith.

23.1    Consent of PricewaterhouseCoopers, LLP, Independent Registered Public Accounting Firm, filed herewith.

31.1    Certification of President and Chief Executive Officer (Principal Executive Officer) Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

31.2    Certification of Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32    Certification of President and Chief Executive Officer (Principal Executive Officer) and Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) Pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

101    The following materials from Rogers Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for the fiscal years ended December 31, 2020, 2019 and 2018; (ii) Consolidated Statements of Comprehensive Income for the fiscal years ended December 31, 2020, 2019 and 2018; (iii) Consolidated Statements of Financial Position for the fiscal years ended December 31, 2020 and 2019; (iv) Consolidated Statements of Shareholders’ Equity for the fiscal years ended December 31, 2020, 2019 and 2018; (v) Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2020, 2019 and 2018; (vi) Notes to Consolidated Financial Statements and (vii) Cover Page.

104    The cover page from Rogers Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, formatted in iXBRL and contained in Exhibit 101.

**    Management contract or compensatory plan or arrangement.

Item 16. Form 10-K Summary

Not Applicable.

77

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ROGERS CORPORATION
(Registrant)

/s/ Bruce D. Hoechner

Bruce D. Hoechner

President and Chief Executive Officer
Principal Executive Officer

February 18, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on February 18, 2021, by the following persons on behalf of the Registrant and in the capacities indicated.

/s/ Bruce D. Hoechner	/s/ Keith L. Barnes
Bruce D. Hoechner President and Chief Executive Officer Director Principal Executive Officer	Keith L. Barnes Director
/s/ Michael M. Ludwig	/s/ Carol R. Jensen
Michael M. Ludwig Senior Vice President, Chief Financial Officer and Treasurer Principal Financial Officer	Carol R. Jensen Director
/s/ Mark D. Weaver	/s/ Jeffrey J. Owens
Mark D. Weaver Chief Accounting Officer and Corporate Controller Principal Accounting Officer	Jeffrey J. Owens Director
/s/ Megan Faust	/s/ Ganesh Moorthy
Megan Faust Director	Ganesh Moorthy Director
/s/ Helene Simonet	/s/ Peter C. Wallace
Helene Simonet Director	Peter C. Wallace Director
/s/ Keith R. Larson
Keith R. Larson Director

78

EX-21

Exhibit 21

ROGERS CORPORATION AND CONSOLIDATED SUBSIDIARIES

Subsidiaries of the Registrant

Company	Percentage of Voting Securities Owned	Jurisdiction of Incorporation or Organization
Rogers Investment (Singapore) Pte., Ltd.	100%	Singapore
Rogers Japan, Inc.	100%	Delaware
Rogers Southeast Asia, Inc.	100%	Delaware
Rogers Taiwan, Inc.	100%	Delaware
Rogers Technologies Singapore, Inc.	100%	Singapore
Rogers Technologies (Suzhou) Co., Ltd.	100%	China
World Properties, Inc.	100%	Illinois
Rogers BV	100%	Belgium
Rogers GmbH	100%	Germany
Rogers U.K., Ltd.	100%	England
Rogers KF, Inc.	100%	Delaware
Rogers Luxembourg Sarl	100%	Luxembourg
Rogers Benelux Sarl	100%	Luxembourg
Rogers Worldwide, LLC.	100%	Delaware
Rogers New Territories Corporation, Ltd.	100%	Hong Kong
Rogers Asia Holding Company, Ltd.	100%	Hong Kong
Rogers Pacific, Ltd.	100%	Hong Kong
Utis Co., Ltd.	100%	Korea
Rogers Germany GmbH	100%	Germany
Rogers Korea, Inc.	100%	Korea
Arlon Holdings, LLC.	100%	Delaware
Arlon, LLC.	100%	Delaware
Arlon MED International, LLC.	100%	Delaware
Rogers Material Technologies (Suzhou) Co., Ltd.	100%	China
Rogers Hungary KfT	100%	Hungary
Rogers Finance (Ireland) Unlimited Company	100%	Ireland
Rogers Finance (Luxembourg) Sarl	100%	Luxembourg
Chandler Holdings I Corporation	100%	Delaware
DeWAL Industries, LLC	100%	Rhode Island
Diversified Silicone Products Corporation	100%	Delaware
Chandler Holdings III, LLC	100%	Delaware
Griswold, LLC.	100%	Delaware
Griswold (Shenzhen) Trading Co., Ltd.	100%	China
Rogers Inoac Corporation *	50%	Japan
Rogers Inoac Suzhou Corporation *	50%	China

*    These entities are unconsolidated joint ventures and accordingly are not included in the consolidated financial statements of Rogers Corporation, except to the extent required by the equity method of accounting.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (Nos. 333-231459, 333-198038, 333-181199, 333-174195, 333-159063) of Rogers Corporation of our report dated February 18, 2021 relating to the financial statements and financial statement schedulesand the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/ PricewaterhouseCoopers LLP

Phoenix, Arizona

February 18, 2021

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Bruce D. Hoechner, certify that:

1.I have reviewed this Annual Report on Form 10-K of Rogers Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: February 18, 2021

/s/ Bruce D. Hoechner

Bruce D. Hoechner

President and Chief Executive Officer
Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Michael M. Ludwig, certify that:

1.I have reviewed this Annual Report on Form 10-K of Rogers Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: February 18, 2021

/s/ Michael M. Ludwig

Michael M. Ludwig

Senior Vice President, Chief Financial Officer and Treasurer
Principal Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Rogers Corporation, a Massachusetts corporation (the “Corporation”), does hereby certify that:

The Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) of the Corporation fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ Bruce D. Hoechner

Bruce D. Hoechner

President and Chief Executive Officer
Principal Executive Officer

February 18, 2021

/s/ Michael M. Ludwig

Michael M. Ludwig

Senior Vice President, Chief Financial Officer and Treasurer Principal Financial Officer

February 18, 2021

XML

Cover - USD ($)	12 Months Ended
	Dec. 31, 2020	Feb. 12, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-4347
Entity Registrant Name	ROGERS CORP
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	06-0513860
Entity Address, Address Line One	2225 W. Chandler Blvd.
Entity Address, City or Town	Chandler
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85224-6155
City Area Code	480
Local Phone Number	917-6000
Title of 12(b) Security	Common Stock,
Entity Trading Symbol	ROG
Security Exchange Name	NYSE
Entity Well-known Season Filer	Yes
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2,301,662,539
Entity Common Stock, Shares Outstanding		18,699,801
Documents Incorporated by Reference	Portions of Rogers’ Definitive Proxy Statement for its 2020 Annual Meeting of Shareholders, currently scheduled for May 5, 2021, are incorporated by reference into Part III of this Form 10-K
Entity Central Index Key	0000084748
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net sales	$ 802,583	$ 898,260	$ 879,091
Cost of sales	510,763	583,968	568,308
Gross margin	291,820	314,292	310,783
Selling, general and administrative expenses	182,283	168,682	164,046
Research and development expenses	29,320	31,685	33,075
Restructuring and impairment charges	12,987	2,485	4,038
Other operating (income) expense, net	(104)	959	(3,087)
Operating income	67,334	110,481	112,711
Equity income in unconsolidated joint ventures	4,877	5,319	5,501
Pension settlement charges	(55)	(53,213)	0
Other income (expense), net	3,513	(592)	(994)
Interest expense, net	(7,135)	(6,869)	(6,629)
Income before income tax expense	68,534	55,126	110,589
Income tax expense	18,544	7,807	22,938
Net income	$ 49,990	$ 47,319	$ 87,651
Basic earnings per share (in dollars per share)	$ 2.68	$ 2.55	$ 4.77
Diluted earnings per share (in dollars per share)	$ 2.67	$ 2.53	$ 4.70
Shares used in computing:
Basic earnings per share (in shares)	18,681	18,573	18,374
Diluted earnings per share (in shares)	18,706	18,713	18,659

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 49,990	$ 47,319	$ 87,651
Foreign currency translation adjustment	24,907	(4,990)	(12,505)
Pension and other postretirement benefits:
Pension settlement (benefits) charges, net of tax (Note 4)	(48)	43,934	0
Actuarial net gain (loss) incurred, net of tax (Note 4)	1,255	(6,079)	(1,678)
Amortization of loss, net of tax (Note 4)	244	390	176
Derivative instrument designated as cash flow hedge:
Change in unrealized (loss) gain before reclassifications, net of tax (Note 4)	(1,504)	(1,171)	519
Unrealized loss (gain) reclassified into earnings, net of tax (Note 4)	2,476	(155)	(191)
Other comprehensive income (loss)	27,330	31,929	(13,679)
Comprehensive income	$ 77,320	$ 79,248	$ 73,972

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 191,785	$ 166,849
Accounts receivable, less allowance for credit losses of $1,682 and $1,691	134,421	122,285
Contract assets	26,575	22,455
Inventories	102,360	132,859
Prepaid income taxes	2,960	4,524
Asbestos-related insurance receivables, current portion	2,986	4,292
Other current assets	13,088	10,838
Total current assets	474,175	464,102
Property, plant and equipment, net of accumulated depreciation of $365,844 and $341,119	272,378	260,246
Investments in unconsolidated joint ventures	15,248	16,461
Deferred income taxes	28,667	17,117
Goodwill	270,172	262,930
Other intangible assets, net of amortization	118,026	158,947
Pension assets	5,278	12,790
Asbestos-related insurance receivables, non-current portion	63,807	74,024
Other long-term assets	16,254	6,564
Total assets	1,264,005	1,273,181
Current liabilities
Accounts payable	35,987	33,019
Accrued employee benefits and compensation	41,708	29,678
Accrued income taxes payable	8,558	10,649
Asbestos-related liabilities, current portion	3,615	5,007
Other accrued liabilities	21,641	21,872
Total current liabilities	111,509	100,225
Borrowings under revolving credit facility	25,000	123,000
Pension and other postretirement benefits liabilities	1,612	1,567
Asbestos-related liabilities, non-current portion	69,620	80,873
Non-current income tax	16,346	10,423
Deferred income taxes	8,375	9,220
Other long-term liabilities	10,788	13,973
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,677 and 18,577 shares issued and outstanding, respectively	18,677	18,577
Additional paid-in capital	147,961	138,526
Retained earnings	873,692	823,702
Accumulated other comprehensive loss	(19,575)	(46,905)
Total shareholders' equity	1,020,755	933,900
Total liabilities and shareholders' equity	$ 1,264,005	$ 1,273,181

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 1,682	$ 1,691
Accumulated depreciation	$ 365,844	$ 341,119
Capital Stock, par value (in dollars per share)	$ 1	$ 1
Capital Stock, authorized shares (in shares)	50,000,000	50,000,000
Capital Stock, shares issued (in shares)	18,677,000	18,577,000
Capital Stock, shares outstanding (in shares)	18,677,000	18,577,000

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Capital Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Cumulative-effect adjustment	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2017		$ 18,255	$ 128,933	$ 684,540		$ (65,155)
Beginning Balance (Cumulative-effect adjustment for revenue recognition) at Dec. 31, 2017					$ 4,212
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		117	(6,717)
Net income	$ 87,651			87,651
Stock options exercised		22	839
Shares issued for employee stock purchase plan		12	1,070
Shares issued to directors		12	(12)
Shares repurchased	(2,999)	(23)	(2,976)
Equity compensation expense			11,223
Other comprehensive income (loss)	(13,679)					(13,679)
Ending Balance at Dec. 31, 2018	848,324	18,395	132,360	776,403		(78,834)
Ending Balance (Cumulative-effect adjustment for lease accounting) at Dec. 31, 2018					$ (20)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		144	(7,694)
Net income	47,319			47,319
Stock options exercised		11	333
Shares issued for employee stock purchase plan		15	1,234
Shares issued to directors		12	(12)
Shares repurchased	0	0	0
Equity compensation expense			12,305
Other comprehensive income (loss)	31,929					31,929
Ending Balance at Dec. 31, 2019	933,900	18,577	138,526	823,702		(46,905)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		82	(5,439)
Net income	49,990			49,990
Stock options exercised		0	0
Shares issued for employee stock purchase plan		13	1,347
Shares issued to directors		5	(5)
Shares repurchased	0	0	0
Equity compensation expense			13,532
Other comprehensive income (loss)	27,330					27,330
Ending Balance at Dec. 31, 2020	$ 1,020,755	$ 18,677	$ 147,961	$ 873,692		$ (19,575)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Activities:
Net income	$ 49,990	$ 47,319	$ 87,651
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	71,425	49,162	50,073
Equity compensation expense	13,532	12,305	11,223
Deferred income taxes	(13,406)	(17,549)	(3,325)
Equity in undistributed income of unconsolidated joint ventures	(4,877)	(5,319)	(5,501)
Dividends received from unconsolidated joint ventures	7,075	5,375	4,431
Pension settlement charges	(63)	53,213	0
Pension and other postretirement benefits	(160)	(943)	(1,552)
Asbestos-related charges	(682)	1,720	704
Loss (gain) on sale or disposal of property, plant and equipment	41	756	(164)
Impairment charges	639	1,537	1,506
Provision (benefit) for credit losses	223	437	236
Changes in assets and liabilities:
Accounts receivable	(8,934)	20,677	(3,824)
Contract assets	(4,120)	273	(22,728)
Inventories	34,687	(1,200)	(19,013)
Pension and postretirement benefit contributions	(253)	(103)	(25,354)
Other current assets	(217)	(1,519)	(648)
Accounts payable and other accrued expenses	10,084	(9,139)	(7,886)
Other, net	10,072	4,321	991
Net cash provided by operating activities	165,056	161,323	66,820
Investing Activities:
Acquisition of business, net of cash received	0	0	(77,969)
Isola asset acquisition	0	0	(43,434)
Capital expenditures	(40,385)	(51,597)	(47,115)
Proceeds from the sale of property, plant and equipment, net	0	9	1,081
Return of capital from unconsolidated joint ventures	0	2,625	0
Net cash used in investing activities	(40,385)	(48,963)	(167,437)
Financing Activities:
Proceeds from borrowings under revolving credit facility	150,000	0	102,500
Line of credit issuance costs	(1,862)	0	0
Repayment of debt principal and finance lease obligations	(248,330)	(105,886)	(6,162)
Payments of taxes related to net share settlement of equity awards	(5,357)	(7,550)	(6,600)
Proceeds from the exercise of stock options, net	0	344	861
Proceeds from issuance of shares to employee stock purchase plan	1,360	1,249	1,082
Share repurchases	0	0	(2,999)
Net cash (used in) provided by financing activities	(104,189)	(111,843)	88,682
Effect of exchange rate fluctuations on cash	4,454	(1,406)	(1,486)
Net decrease in cash and cash equivalents	24,936	(889)	(13,421)
Cash and cash equivalents at beginning of period	166,849	167,738	181,159
Cash and cash equivalents at end of period	191,785	166,849	167,738
Supplemental Disclosures:
Accrued capital additions	715	3,420	2,744
Interest, net of amounts capitalized	7,251	7,762	7,040
Income taxes	$ 29,983	$ 17,593	$ 29,161

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Basis of Presentation, Organization and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation, Organization and Summary of Significant Accounting Policies

Basis of Presentation, Organization and Summary of Significant Accounting Policies

As used herein, the terms “Company,” “Rogers,” “we,” “us,” “our” and similar terms mean Rogers Corporation and its consolidated subsidiaries, unless the context indicates otherwise.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, after elimination of intercompany balances and transactions. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States (U.S. GAAP), 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 three strategic 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 infrastructure (e.g., power amplifiers, antennas and small cells), automotive (e.g., ADAS, telematics and thermal solutions), aerospace and defense (e.g. antenna systems, communication systems and phased array radar systems), connected devices (e.g., mobile internet devices and thermal solutions) and wired infrastructure (e.g., computing and IP infrastructure) markets. We believe these products have characteristics that offer performance and other functional advantages in many market applications that serve to differentiate our products from other commonly available materials. ACS products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits. Trade names for our ACS products include: RO4000® Series, RO3000® Series, RT/duroid®, CLTE Series®, TMM®, AD Series®, DiClad® Series, CuClad® Series, Kappa®, COOLSPAN®, TC Series®, 92ML™, IsoClad® Series, MAGTREX™, XTremeSpeed RO1200™ Laminates, IM Series™, 2929 Bondply, 3001 Bondply Film and SpeedWave™ Prepreg. As of December 31, 2020, our ACS operating segment had 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 engineered material solutions for a wide variety of applications and markets. These include polyurethane and silicone materials used in cushioning, gasketing and sealing, and vibration management applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense, footwear and impact mitigation and printing markets; customized silicones used in flex heater and semiconductor thermal applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive and aerospace and defense markets. We believe 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). Trade names for our EMS products include: PORON®, BISCO®, DeWAL®, ARLON®, eSorba®, Griswold®, XRD®, R/bak® and HeatSORB™.

As of December 31, 2020, our EMS operating segment had administrative and manufacturing facilities in Moosup, Connecticut; Rogers, Connecticut; Woodstock, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Ansan, South Korea; and Suzhou, China. We also own 50% of two unconsolidated joint ventures: (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 the 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, busbars and cooling solutions for a variety of applications in EV/HEV, general industrial, mass transit, renewable energy, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik® trade name and our busbars under the ROLINX® trade name. As of December 31, 2020, our PES operating segment had manufacturing and administrative facilities in Evergem, Belgium; Eschenbach, Germany; Budapest, Hungary; and Suzhou, China.

Other

Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR® trade name and our floats under our NITROPHYL® trade name.

Summary of Significant Accounting Policies

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, both 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 2020 and losses of $0.9 million and $0.7 million in 2019 and 2018, respectively.

Allowance for Credit Losses

In 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, we changed our impairment model to utilize a current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including our accounts receivable. CECL estimates on accounts receivable are recorded as selling, general and administrative expenses on our consolidated statements of operations. The cumulative effect adjustment from adoption was immaterial to our consolidated financial statements.

The allowance for credit losses 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 our 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.

Our “Inventories” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Raw materials	$	44,976	$	61,338
Work-in-process	25,291		30,043
Finished goods	32,093		41,478
Total inventories	$	102,360	$	132,859

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:

Property, Plant and Equipment Classification	Estimated Useful Lives
Buildings and improvements	30-40 years
Machinery and equipment	5-15 years
Office equipment	3-10 years

Software Costs

We capitalize certain internal and external costs of computer software developed or obtained for internal use, principally related to software coding, software configuration, designing system interfaces and installation and testing of the software. We amortize capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three to five years. Net capitalized software and development costs were $0.3 million and $0.2 million for the years ended December 31, 2020 and 2019, 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 its 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, 2020.

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 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 10.5% for EMS to 13.1% for ECD, and terminal growth rates ranging from 3.4% for curamik® to 4.2% for ACS. 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 for the year ended December 31, 2020. Our ACS, EMS, curamik® and ECD reporting units had allocated goodwill of $51.7 million, $143.0 million, $73.2 million and $2.2 million respectively, as of December 31, 2020.

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 an impairment charge is recognized for the excess and charged to operations. Consistent with historical practice, the annual impairment test on these reporting units was performed as of November 30, 2020. 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 for the year ended December 31, 2020. The curamik® reporting unit had an indefinite-lived other intangible asset of $4.8 million as of December 31, 2020.

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 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 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 immaterial impairment charges resulting from our definite-lived other intangible assets impairment analysis for the year ended December 31, 2020. Our ACS, EMS and curamik® reporting units had definite-lived other intangible assets of $3.7 million, $101.2 million and $8.2 million, respectively, as of December 31, 2020.

The useful life determination for each indefinite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances support an indefinite useful life. The useful life determination for each definite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization.

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 review our asbestos-related projections annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time we would analyze these projections. We believe the assumptions made on the potential exposure and expected insurance coverage are reasonable at the present time, but are subject to uncertainty based on the actual future outcome of our asbestos litigation. 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 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, average indemnity costs, average defense costs, 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 assumptions are subject to even greater uncertainty as the projection period lengthens. 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 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. Given the inherent uncertainty in making projections, we plan to re-examine periodically the assumptions used in 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. Our accrued asbestos liabilities may not approximate our actual asbestos-related indemnity and defense costs, and our accrued insurance recoveries may not 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 that could exceed existing reserves and insurance recoveries.

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 characteristics as of December 31, 2020, borrowings would generally bear interest at London interbank offered rate (LIBOR) plus 162.5 basis points. As the current borrowings under the Fourth Amended Credit Agreement bear interest at adjusted 1-month LIBOR plus 162.5 basis points, we believe the carrying value of our borrowings approximates fair value. For additional information on the calculation of fair value measurements, refer to “Note 2 – Fair Value Measurements.”

Hedging Transactions and Derivative Financial Instruments

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 (loss). 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.” For additional information, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

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. As of December 31, 2020 and 2019, there were no customers that individually accounted for more than 10% of total accounts receivable. We did not experience significant credit losses on customers’ accounts in 2020, 2019 or 2018.

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 U.S. and in numerous foreign jurisdictions. We account for income taxes following Accounting Standards Codification (ASC) 740, 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.

We did not make any changes in 2020 to our position on the permanent reinvestment of our historical earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, we continue to assert that historical foreign earnings are indefinitely reinvested. As of December 31, 2020 and 2019, we recorded a deferred tax liability of $2.4 million and $1.6 million, respectively, for Chinese withholding tax on undistributed earnings that are not indefinitely reinvested. The other remaining foreign subsidiaries have both the intent and ability to indefinitely reinvest their undistributed earnings and we estimate that, if these undistributed earnings are distributed, they may give rise to an estimated $3.8 million of additional tax liabilities. If circumstances change and it becomes apparent that some, or all of the undistributed earnings as of December 31, 2020 will not be indefinitely reinvested, the provision for the tax consequences, if any, will be recorded in the period when circumstances change. Distributions out of current and future earnings are permissible to fund discretionary activities such as business acquisitions. However, when distributions are made, this could result in a higher effective tax rate.

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 item in the consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line item in the consolidated statements of financial position.

Revenue Recognition

Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of our shipping terms permit us to recognize revenue at point of shipment. Some shipping terms require the goods to be cleared 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. Shipping and handling costs are treated as fulfillment costs. Sales tax or VAT are excluded from the measurement of the transaction price.

Pension and Other Postretirement Benefits

We sponsor one material defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which covers certain union employees, and we sponsor multiple fully insured or self-funded medical plans and fully insured life insurance plans for retirees. The Union Plan was frozen in 2013 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 rates 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 bond index; (ii) the long-term rate of return on plan assets is determined based on historical portfolio results, market conditions and our expectations of future returns; 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 determine these assumptions based on consultation with outside actuaries and investment advisors. Any changes in these assumptions could have a significant impact on our assets and liabilities. We review these assumptions periodically throughout the year and update as necessary.

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 a plan’s obligations that determine our funded status as of the end of the 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 loss. Additionally, actuarial losses (gains) that are not immediately recognized as net periodic pension cost (credit) are recognized as a component of accumulated other comprehensive loss (income) and amortized into net periodic pension cost (credit) in future periods.

Investments were stated at fair value as of the dates reported. Securities traded on a national securities exchange were valued at the last reported sales price on the last business day of the plan year. Fixed-income bonds were valued using price evaluations provided by independent pricing services. 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 recordkeeper, on the last business day of the relevant 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 Company assets for investment purposes.

Restructuring Activities

We record charges associated with restructuring activities, such as employee termination benefits, which represent a one-time benefit, when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with restructuring activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs.

Advertising Costs

Advertising costs are expensed as incurred and amounted to $2.2 million, $3.6 million and $3.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

Equity Compensation

Equity compensation mainly consists of expense related to restricted stock units and deferred stock units.

Performance-based restricted stock unit compensation expense is based on achievement of both market and service conditions. The fair value of these awards is determined based on a Monte Carlo simulation valuation model on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards.

Time-based restricted stock unit compensation expense is based on the achievement of only service conditions. The fair value of these awards is determined based on the market value of the underlying stock price on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period.

Deferred stock units, which are granted to non-management directors, are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the director elects to defer the receipt of those shares. The fair value of these awards is determined based on the market value of the underlying stock price on the grant date. The compensation related to these grants is expensed immediately on the date of grant.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2020

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.

As a result of our pension termination and settlement efforts in late 2019 and the first half of 2020, we have a pension surplus investment balance, which is now accounted for as an available-for-sale investment as of June 2020. For additional information regarding this balance, refer to “Note 11 – Pension Benefits and Other Postretirement Benefits.” Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Available-for-Sale Investment at Fair Value as of December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,706	$	2,400	$	—	$	9,106

(1) This balance was invested in funds comprised of short-term cash and fixed income securities, and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of December 31, 2020, the fair value of this investment approximated its carrying value.

From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts, copper derivative contracts and interest rate swaps. 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, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(130)	$	—	$	(130)
Copper derivative contracts	$	—	$	4,785	$	—	$	4,785
Interest rate swap contract	$	—	$	—	$	—	$	—

	Derivative Instruments at Fair Value as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(6)	$	—	$	(6)
Copper derivative contracts	$	—	$	1,147	$	—	$	1,147
Interest rate swap contract	$	—	$	(1,254)	$	—	$	(1,254)

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item.

For additional information on our derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

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Hedging Transactions and Derivative Financial Instruments

12 Months Ended

Dec. 31, 2020

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, commodity pricing risk (primarily related to copper) and 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 option 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, which are collectively a function of five primary variables: price of the underlying instrument, time to expiration, strike price, interest rate and volatility. 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 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.

•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, 2019, only our interest rate swap qualified for hedge accounting treatment as a cash flow hedge, and the hedge was highly effective.

Foreign Currency

In 2020, we entered into U.S. dollar, euro, Korean won and Japanese yen 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 in the period in which the adjustment occurred.

As of December 31, 2020 the notional values of these foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	28,766,855
EUR/USD	€	8,151,124
KRW/USD	₩	10,893,500,000

Commodity

As of December 31, 2020, we had 18 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 are intended to offset rising copper prices 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 in the period in which the adjustment occurred.

As of December 31, 2020, the volume of our copper contracts outstanding were as follows:

Volume of Copper Derivatives
January 2021 - March 2021	256 metric tons per month
April 2021 - June 2021	256 metric tons per month
July 2021 - September 2021	222 metric tons per month
October 2021 - December 2021	222 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. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million. As a result of the termination of the interest rate swap, there is an offsetting decrease in the forecasted interest expense, net over the remaining term of the now-terminated interest rate swap, which was set to expire in February 2022. For additional information regarding our revolving credit facility, refer to “Note 9 – Debt.”

Effects on Financial Statements

The following table presents the impact from these instruments on the statement of operations and statements of comprehensive income:

		Years Ended December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019		2018
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(1,981)	$	(779)	$	(333)
Copper Derivatives Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	3,610	$	(716)	$	(2,101)
Interest Rate Swap Contract
Contract designated as hedging instrument	Other comprehensive income (loss)	$	1,254	$	(1,715)	$	420

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Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component for each of the fiscal years in the two-year period ended December 31, 2020 were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Derivative Instrument Designated as Cash Flow Hedge(2)		Total
Balance as of December 31, 2018	$	(30,488)	$	(48,700)	$	354	$	(78,834)
Other comprehensive income (loss) before reclassifications	(4,990)		(6,079)		(1,171)		(12,240)
Amounts reclassified to earnings	—		44,324		(155)		44,169
Net other comprehensive income (loss) for period	(4,990)		38,245		(1,326)		31,929
Balance as of December 31, 2019	(35,478)		(10,455)		(972)		(46,905)
Other comprehensive income (loss) before reclassifications	24,907		1,255		(1,504)		24,658
Amounts reclassified to earnings	—		196		2,476		2,672
Net other comprehensive income (loss) for period	24,907		1,451		972		27,330
Balance as of December 31, 2020	$	(10,571)	$	(9,004)	$	—	$	(19,575)

(1) Net of taxes of $1,951, $2,368 and $9,984 for the years ended December 31, 2020, 2019 and 2018, respectively.

(2) Net of taxes of $0, $282 and ($106) for the years ended December 31, 2020, 2019 and 2018, respectively.

The impacts to the consolidated statements of operations related to items reclassified to earnings were as follows:

		Years Ended December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Amortization/settlement of pension and other postretirement benefits
	Pension settlement charges	$	63	$	(53,213)
	Other income (expense), net(1)	(315)		(504)
	Income tax (expense) benefit	56		9,393
	Net income	$	(196)	$	(44,324)
Unrealized gains (losses) on derivative instrument(2)
	Other income (expense), net	$	(3,191)	$	200
	Income tax (expense) benefit	715		(45)
	Net income	$	(2,476)	$	155

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. For additional details, refer to “Note 11 – Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan.”

(2) This relates to the derivative instrument designated as a cash flow hedge and held as of the end of the year for each year presented.

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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Our “Property, plant and equipment, net” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Land and improvements	$	22,589	$	21,697
Buildings and improvements	155,669		165,968
Machinery and equipment	324,773		281,771
Office equipment	59,001		68,349
Property plant and equipment, gross	562,032		537,785
Accumulated depreciation	(365,844)		(341,119)
Property, plant and equipment, net	196,188		196,666
Equipment in process	76,190		63,580
Total property, plant and equipment, net	$	272,378	$	260,246

Depreciation expense was $29.3 million in 2020, $31.4 million in 2019 and $33.5 million in 2018.

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the period ending December 31, 2020, by operating segment, were as follows:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2019	$	51,694	$	142,030	$	66,982	$	2,224	$	262,930
Foreign currency translation adjustment	—		991		6,251		—		7,242
December 31, 2020	$	51,694	$	143,021	$	73,233	$	2,224	$	270,172

Other Intangible Assets

The changes in the carrying amount of other intangible assets for the two-year period ending December 31, 2020, were as follows:

	December 31, 2020						December 31, 2019
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	150,863	$	72,014	$	78,849	$	149,317	$	39,018	$	110,299
Technology	83,469		53,540		29,929		80,938		45,190		35,748
Trademarks and trade names	12,039		8,149		3,890		11,994		4,361		7,633
Covenants not to compete	1,340		827		513		1,340		505		835
Total definite-lived other intangible assets	247,711		134,530		113,181		243,589		89,074		154,515
Indefinite-lived other intangible asset	4,845		—		4,845		4,432		—		4,432
Total other intangible assets	$	252,556	$	134,530	$	118,026	$	248,021	$	89,074	$	158,947

In the table above, gross carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations.

Amortization expense was $42.1 million, $17.8 million and $16.5 million in 2020, 2019 and 2018, respectively. The estimated annual future amortization expense is $12.4 million, $11.9 million, $11.3 million, $10.0 million and $8.5 million in 2021, 2022, 2023, 2024 and 2025, respectively. These amounts could vary based on changes in foreign currency exchange rates.

The increase in amortization expense in 2020, and decrease in forecasted amortization expense in future years, were due to the acceleration of amortization expense related to our Diversified Silicone Products, Inc. (DSP) customer relationships and trademarks and trade names definite-lived other intangible assets, which were both accelerated to be fully amortized by

December 31, 2020. As part of our ongoing assessment of the useful lives of our definite-lived other intangible assets, we reviewed the deterioration of our DSP business and identified significant customer attrition, a sustained substantial decrease in net sales, as well as the planned phase-out of the DSP trademark and trade name by December 2020. Based on these events and circumstances, we concluded an adjustment to the remaining useful lives of our DSP customer relationships and trademarks and trade names definite-lived other intangible assets was warranted.

The weighted average amortization period as of December 31, 2020, by definite-lived other intangible asset class, is presented in the table below:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	6.10
Technology	3.90
Trademarks and trade names	4.85
Covenants not to compete	1.27
Total definite-lived other intangible assets	5.45

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Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:

	Years Ended December 31,
(Dollars and shares in thousands, except per share amounts)	2020		2019		2018
Numerator:
Net income	$	49,990	$	47,319	$	87,651
Denominator:
Weighted average shares outstanding - basic	18,681		18,573		18,374
Effect of dilutive shares	25		140		285
Weighted average shares outstanding - diluted	18,706		18,713		18,659
Basic earnings per share	$	2.68	$	2.55	$	4.77
Diluted earnings per share	$	2.67	$	2.53	$	4.70

Dilutive shares are calculated using the treasury stock method and primarily include unvested restricted stock units. Anti-dilutive shares are excluded from the calculation of diluted shares and diluted earnings per share. For 2020, 2019, and 2018, 8,454, 20,520 and 36,642 shares were excluded, respectively.

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Capital Stock and Equity Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Capital Stock and Equity Compensation

Capital Stock and Equity Compensation

Capital Stock

Our 2019 Long-Term Equity Compensation Plan, which was approved by our shareholders in May 2019, permits the granting of restricted stock units and certain other forms of equity awards to officers and other key employees. Under this plan, we also grant each non-management director deferred stock units, which permit non-management directors to receive, at a later date, one share of Rogers capital stock for each deferred stock unit, with no payment of any consideration by the director at the time the shares were received.

Shares of capital stock reserved for possible future issuance were as follows:

	As of December 31,
	2020	2019
Shares reserved for issuance under outstanding restricted stock unit awards	324,260	315,571
Deferred compensation to be paid in stock, including deferred stock units	12,715	7,681
Additional shares reserved for issuance under Rogers Corporation 2019 Long-Term Equity Compensation Plan	918,809	1,063,920
Shares reserved for issuance under the Rogers Corporation Global Stock Ownership Plan for Employees	78,678	91,670
Total	1,334,462	1,478,842

Equity Compensation

Performance-Based Restricted Stock Units

As of December 31, 2020, we had performance-based restricted stock units from 2020, 2019 and 2018 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 measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The outstanding awards have one measurement criteria: the three-year total shareholder return (TSR) on our capital stock as compared to that of a specified group of peer companies. The TSR measurement criteria of the awards is considered a market condition. As such, the fair value of this measurement criteria is determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.

Below were the assumptions used in the Monte Carlo calculation for each material award granted in 2020, 2019 and 2018:

	February 12, 2020	June 3, 2019	February 7, 2019	September 17, 2018	February 8, 2018
Expected volatility	41.0%	39.7%	36.7%	36.6%	34.8%
Expected term (in years)	2.9	2.6	2.9	3.0	3.0
Risk-free interest rate	1.41%	1.78%	2.43%	2.85%	2.28%

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.

A summary of activity of the outstanding performance-based restricted stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	106,943	$	161.33	142,434	$	110.19	169,202	$	97.16
Awards granted	87,244	131.99		112,160	114.22		75,760	163.55
Stock issued	(75,486)	111.54		(135,032)	69.10		(81,230)	131.72
Awards forfeited	(7,642)	179.89		(12,619)	152.22		(21,298)	114.40
Awards outstanding as of December 31	111,059	$	170.84	106,943	$	161.33	142,434	$	110.19

We recognized $5.8 million, $5.0 million and $4.4 million of compensation expense related to performance-based restricted stock units for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $7.6 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 0.8 years.

Time-Based Restricted Stock Units

As of December 31, 2020, we had time-based restricted stock unit awards from 2020, 2019 and 2018 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. 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 subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of the Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur.

A summary of activity of the outstanding time-based restricted stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	101,685	$	122.68	117,476	$	116.10	173,331	$	69.10
Awards granted	58,807	116.87		62,115	126.92		46,810	143.93
Stock issued	(50,868)	111.16		(68,111)	81.53		(82,921)	84.92
Awards forfeited	(7,482)	122.87		(9,795)	116.52		(19,744)	112.06
Awards outstanding as of December 31	102,142	$	120.16	101,685	$	122.68	117,476	$	116.10

We recognized $6.0 million, $5.8 million and $5.6 million of compensation expense related to time-based restricted stock units for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $7.5 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 0.9 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-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date.

A summary of activity of the outstanding deferred stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	7,150	$	170.89	8,400	$	108.86	9,250	$	109.48
Awards granted	10,400	108.88		5,950	183.40		8,400	108.86
Stock issued	(5,100)	183.40		(7,200)	108.86		(9,250)	109.48
Awards outstanding as of December 31	12,450	$	113.96	7,150	$	170.89	8,400	$	108.86

We recognized compensation expense related to deferred stock units of $1.1 million, $1.1 million and $0.9 million, for the years ended December 31, 2020, 2019 and 2018, respectively.

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Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt

In February 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 increased the principal amount of our 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).

All obligations under the Third Amended Credit Agreement were guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Third Amended Credit Agreement (the Guarantors). The obligations were 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 grante 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 included, but were not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries. All revolving loans were due on the maturity date, February 17, 2022.

Borrowings under the Third Amended Credit Agreement could have been made as alternate base rate loans or euro-currency loans. Alternate base rate loans bore interest that included a base reference rate plus a spread of 37.5 to 75.0 basis points, depending on our leverage ratio. The base reference rate was the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Reserve Bank of New York (NYFRB) Rate in effect on such day plus ½ of 1.0% and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day was not a business day, the immediately preceding business day)

plus 1.0%. Euro-currency loans bore interest based on adjusted LIBOR plus a spread of 137.5 to 175.0 basis points, depending on our leverage ratio.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the 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.

The Third Amended Credit Agreement contained customary representations, warranties, covenants, mandatory prepayments and events of default under which our payment obligations could have been accelerated. If an event of default occurred, the lenders could have, among other things, terminated their commitments and declared all outstanding borrowings to be immediately due and payable together with accrued interest and fees. The financial covenants included 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 three fiscal quarters in connection with a permitted acquisition, and (2) an interest coverage ratio of no less than 3.00 to 1.00.

The Third Amended Credit Agreement generally permitted us to pay cash dividends to our shareholders, provided that (i) no default or event of default had occurred and was continuing or would result from the dividend payment and (ii) our leverage ratio did not exceed 2.75 to 1.00. If our leverage ratio exceeded 2.75 to 1.00, we could 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 had occurred and was continuing or would result from the payments.

On October 16, 2020, we entered into the Fourth Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A, as administrative agent, and the lenders party thereto (the Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement amends and restates the Third Amended Credit Agreement, and provides for a revolving credit facility with up to a $450.0 million borrowing capacity, with sublimits for multicurrency borrowings, letters of credit and swing-line notes, in addition to a $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 Fourth Amended Credit Agreement). The Fourth Amended Credit Agreement extends the maturity, the date on which all amounts borrowed or outstanding under the Fourth Amended Credit Agreement are due, from February 17, 2022 to March 31, 2024.

All obligations under the Fourth Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fourth Amended Credit Agreement (the Guarantors). The obligations are also secured by a Fourth Amended and Restated Pledge and Security Agreement, dated as of October 16, 2020, 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 our and the Guarantors’ non-real estate assets. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

Borrowings under the Fourth Amended Credit Agreement can be made as alternate base rate loans or euro-currency loans. Alternate base rate loans bear interest at a base reference rate plus a spread of 62.5 to 100.0 basis points, depending on our leverage ratio. The base reference rate is the greatest of (a) the prime rate in effect on such day, (b) the NYFRB rate in effect on such day plus ½ of 1%, and (c) the adjusted LIBOR for a one month interest period in dollars on such day (or if such day is not a business day, the immediately preceding business day) plus 1%. Euro-currency loans bear interest based on adjusted LIBOR plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of December 31, 2020, the spread was 162.5 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Fourth Amended Credit Agreement, we are required to pay a quarterly fee of 25 to 35 basis points (based upon our leverage ratio) of the unused amount of the lenders’ commitments under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement contains customary representations and 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 total net leverage ratio of no more than 3.25 to 1.00, subject to a one-time election to increase the maximum total net 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. We are permitted to net up to $50.0 million of unrestricted domestic cash and cash equivalents against indebtedness in the calculation of the total net leverage ratio.

The Fourth 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 total net leverage ratio does not exceed 2.75 to 1.00. If our total net 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. Our total net leverage ratio did not exceed 2.75 to 1.00 as of December 31, 2020.

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 was designated as a cash flow hedge and qualified for hedge accounting treatment. We terminated the interest rate swap on September 30, 2020. As a result, we settled the interest rate swap for $2.4 million on October 2, 2020, representing the fair value of the interest rate swap on the date of termination. Both Rogers and the counterparties released each other from all obligation under the interest rate swap agreement, including the obligation to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to the agreed upon notional principal amount of $75.0 million.

We borrowed $150.0 million under our revolving credit facility as a precautionary measure in order to increase our cash position and preserve financial flexibility given current uncertainty in the global markets resulting from the COVID-19 pandemic, during the three months ended March 31, 2020. We did not borrow anything further under our revolving credit facility for the year ended December 31, 2020. We were not required to make any quarterly principal payments under the Third Amended Credit Agreement, nor are we required to make any quarterly principal payments under the Fourth Amended Credit Agreement, however, we made discretionary principal payments totaling $248.0 million, $105.5 million and $5.0 million on our revolving credit facility in 2020, 2019 and 2018, respectively. We had $25.0 million in outstanding borrowings under our revolving credit facility as of December 31, 2020.

We incurred interest expense on our outstanding debt, net of the impacts of our interest rate swap, of $6.5 million, $7.2 million, and $6.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. We incurred an unused commitment fee of $0.7 million for the year ended December 31, 2020, and $0.6 million for the years ended December 31, 2019 and 2018, respectively.

We had $2.3 million and $1.2 million of outstanding line of credit issuance costs as of December 31, 2020 and 2019, respectively, which will be amortized over the life of the Fourth Amended Credit Agreement. We recorded amortization expense of $0.6 million, $0.6 million and $0.6 million for the years ended December 31, 2020, 2019 and 2018, respectively, related to these deferred costs.

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Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

Finance Leases

We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease 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. Our finance lease obligation related to this facility was $4.5 million as of both December 31, 2020 and 2019. The finance lease right-of-use asset balance for this facility was $6.5 million and $6.3 million as of December 31, 2020 and 2019, respectively. Accumulated amortization related to our finance lease right-of-use assets was $4.5 million and $3.8 million as of December 31, 2020 and 2019, respectively. All other finance lease obligations, finance lease right-of-use assets and accumulated amortization were cumulatively immaterial as of December 31, 2020 and 2019.

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the years ended December 31, 2020 and 2019.

Operating Leases

We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.

Our expenses and payments for operating leases were as follows:

	Year Ended December 31,
(Dollars in thousands)	2020		2019		2018
Operating leases expense	$	3,257	$	3,119	$	3,850
Short-term leases expense	$	464	$	192	$	112
Payments on operating lease obligations	$	2,893	$	2,967	$	3,850

Our assets and liabilities balances related to finance and operating leases reflected in the consolidated statements of financial position, were as follows:

		As of December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	7,017	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,216	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,755	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	322	$	4,140
Total finance lease obligations		$	5,077	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,275	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,219	$	2,334
Total operating lease obligations		$	4,494	$	4,677

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of December 31, 2020:

	Finance		Operating
(Dollars in thousands)	Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2021	4,787		2,435		(93)		2,342
2022	194		1,513		(101)		1,412
2023	187		788		(65)		723
2024	—		299		(40)		259
Thereafter	—		42		(37)		5
Total lease payments	5,168		5,077		(336)		4,741
Less: Interest	(91)		(259)		12		(247)
Present Value of Net Future Minimum Lease Payments	$	5,077	$	4,818	$	(324)	$	4,494

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.5 years
Weighted Average Discount Rate	3.07%	4.57%

Practical Expedients

We have elected to recognize lease payments in the consolidated statements of operations on a straight-line basis over the term of the lease for short-term leases. We also elected the package of practical expedients that allows us to carry forward the historical lease classification and accounting for indirect costs for any existing leases.

Leases

Leases

Finance Leases

We have a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease 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. Our finance lease obligation related to this facility was $4.5 million as of both December 31, 2020 and 2019. The finance lease right-of-use asset balance for this facility was $6.5 million and $6.3 million as of December 31, 2020 and 2019, respectively. Accumulated amortization related to our finance lease right-of-use assets was $4.5 million and $3.8 million as of December 31, 2020 and 2019, respectively. All other finance lease obligations, finance lease right-of-use assets and accumulated amortization were cumulatively immaterial as of December 31, 2020 and 2019.

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2020 and 2019. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2020 and 2019. Payments made on the principal portion of our finance lease obligations were immaterial for each of the years ended December 31, 2020 and 2019.

Operating Leases

We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.

Our expenses and payments for operating leases were as follows:

	Year Ended December 31,
(Dollars in thousands)	2020		2019		2018
Operating leases expense	$	3,257	$	3,119	$	3,850
Short-term leases expense	$	464	$	192	$	112
Payments on operating lease obligations	$	2,893	$	2,967	$	3,850

Our assets and liabilities balances related to finance and operating leases reflected in the consolidated statements of financial position, were as follows:

		As of December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	7,017	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,216	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,755	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	322	$	4,140
Total finance lease obligations		$	5,077	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,275	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,219	$	2,334
Total operating lease obligations		$	4,494	$	4,677

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of December 31, 2020:

	Finance		Operating
(Dollars in thousands)	Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2021	4,787		2,435		(93)		2,342
2022	194		1,513		(101)		1,412
2023	187		788		(65)		723
2024	—		299		(40)		259
Thereafter	—		42		(37)		5
Total lease payments	5,168		5,077		(336)		4,741
Less: Interest	(91)		(259)		12		(247)
Present Value of Net Future Minimum Lease Payments	$	5,077	$	4,818	$	(324)	$	4,494

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.5 years
Weighted Average Discount Rate	3.07%	4.57%

Practical Expedients

We have elected to recognize lease payments in the consolidated statements of operations on a straight-line basis over the term of the lease for short-term leases. We also elected the package of practical expedients that allows us to carry forward the historical lease classification and accounting for indirect costs for any existing leases.

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan

Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of December 31, 2019, we had two qualified noncontributory defined benefit pension plans. In June 2020, we completed the remaining settlement efforts for the Rogers Corporation Defined Benefit Pension Plan (following its merger with the Hourly Employees Pension Plan of Arlon LLC, Microwave Material and Silicone Technologies Divisions, Bear, Delaware (collectively, the Merged Plan)), which had been terminated and substantially settled in late 2019. As of December 31, 2020, only the Union Plan, which was frozen and ceased accruing benefits, remained. There are no plans to terminate the Union Plan.

Additionally, we sponsor other postretirement benefit plans including multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31st for each respective plan year.

Pension Plan Termination & Settlement

During the second quarter of 2019, following receipt of a determination letter from the Internal Revenue Service (IRS), the Company amended the Merged Plan to (a) terminate the Merged Plan (subject to discretionary approval by the Company’s Chief Executive Officer) and (b) add a lump sum distribution option in connection with the termination of the Merged Plan, if approved. The Company subsequently provided participants of the Merged Plan an option to elect either a lump sum distribution or an annuity.

On October 17, 2019, the Chief Executive Officer approved the termination of the Merged Plan. A group annuity contract was purchased with an insurance company for all participants who did not elect a lump sum distribution, for $123.3 million, with an initial cash settlement date of October 24, 2019, and a true-up cash settlement date of June 1, 2020. The insurance company became responsible for administering and paying pension benefit payments effective January 1, 2020.

The lump sum distributions of $38.9 million, were all paid out prior to December 31, 2019. The Merged Plan paid an additional $1.3 million of monthly pension benefit payments subsequent to the annuity purchase date during the transition period ending December 31, 2019.

In addition, we recorded a total non-cash pre-tax settlement charge in connection with the termination of the Merged Plan of $53.2 million during the fourth quarter of 2019, as well as an immaterial non-cash pre-tax settlement benefit during the second quarter of 2020. This net settlement charge amount recognized included the immediate recognition into expense of the related unrecognized losses within “Accumulated other comprehensive loss” on the consolidated statements of financial position as of the plan termination date. The pension settlement charge during the fourth quarter of 2019 and the pension settlement benefit during the second quarter of 2020 were recognized in the “Pension settlement charges” line item in the consolidated statements of operations.

As of December 31, 2020, the remaining pension surplus investment balance was approximately $9.1 million. We plan on using a portion of the funds to pay plan expenses, and moving the remainder funds from the pension trust to a defined contribution plan trust, where they will be used to fund certain employer contributions and pay plan expenses. On July 27, 2020, we transferred $7.4 million of the pension surplus investment balance to a suspense account held within a trust for the Rogers Employee Savings and Investment Plan, a 401(k) plan for domestic employees.

Plan Assets and Plan Benefit Obligations

The following table summarizes the change in plan benefit obligations and changes in plan assets:

	Pension Benefits				Other Postretirement Benefits
(Dollars in thousands)	2020		2019		2020		2019
Change in plan benefit obligations:
Benefit obligation as of January 1	$	30,300	$	172,608	$	1,599	$	1,803
Service cost			—		56		61
Interest cost	908		5,641		40		59
Actuarial (gain) loss	491		23,797		—		(51)
Benefit payments	(1,647)		(9,262)		(192)		(273)
Pension settlements	237		(162,484)		—		—
Benefit obligation as of December 31	$	30,289	$	30,300	$	1,503	$	1,599
Change in plan assets:
Fair value of plan assets as of January 1	$	42,835	$	191,652	$	—	$	—
Actual return on plan assets	3,615		22,888		—		—
Employer contributions	—		41		192		273
Benefit payments	(1,647)		(9,262)		(192)		(273)
Transfer related to plan termination	(9,744)		—		—		—
Pension settlements	237		(162,484)		—		—
Fair value of plan assets as of December 31	$	35,296	$	42,835	$	—	$	—
Amount overfunded (underfunded)	$	5,007	$	12,535	$	(1,503)	$	(1,599)

The decreases in our plan benefit obligations in 2020 and 2019 were primarily driven by benefit payments, partially offset by interest costs, actuarial losses and the termination and settlement of our Merged Plan benefit obligations.

Our pension-related balances reflected in the consolidated statements of financial position consisted of the following:

	Pension Benefits				Other Postretirement Benefits
	As of December 31,				As of December 31,
(Dollars in thousands)	2020		2019		2020		2019
Assets & Liabilities:
Non-current assets	$	5,278	$	12,790	$	—	$	—
Current liabilities	(14)		(5)		(148)		(282)
Non-current liabilities	(257)		(250)		(1,355)		(1,317)
Net assets (liabilities)	$	5,007	$	12,535	$	(1,503)	$	(1,599)
Accumulated Other Comprehensive Loss:
Net actuarial (loss) gain	$	(11,171)	$	(13,085)	$	119	$	54
Prior service benefit	—		—		97		209
Accumulated other comprehensive (loss) income	$	(11,171)	$	(13,085)	$	216	$	263

The projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets for the pension plan with a PBO or ABO in excess of its plan assets were immaterial as of December 31, 2020 and 2019.

The PBO, ABO, and fair value of plan assets for the pension plan with plan assets in excess of its PBO or ABO were $30.0 million, $30.0 million and $35.3 million, respectively, as of December 31, 2020. The PBO, ABO, and fair value of plan assets for the pension plans with plan assets in excess of their PBO or ABO were $30.0 million, $30.0 million and $42.8 million, respectively, as of December 31, 2019.

The PBO and ABO of plan assets for the other postretirement benefit plans with a PBO or ABO in excess of plan assets were both $1.5 million as of December 31, 2020. The PBO and ABO of plan assets for the other postretirement benefit plans with a PBO or ABO in excess of plan assets were both $1.6 million as of December 31, 2019. The other postretirement benefit plans did not have any plan assets as of December 31, 2020 or 2019.

Components of Net Periodic Benefit Cost (Credit)

The components of net periodic benefit cost (credit) were as follows:

	Pension Benefits						Other Postretirement Benefits
	Years Ended December 31,						Years Ended December 31,
(Dollars in thousands)	2020		2019		2018		2020		2019		2018
Service cost			$	—	$	—	$	56	$	61	$	73
Interest cost	908		5,641		6,758		40		59		62
Expected return of plan assets	(1,574)		(6,932)		(8,662)		—		—		—
Amortization of prior service credit	—		—		—		(112)		(1,011)		(1,602)
Amortization of net loss (gain)	427		1,514		1,828		—		—		—
Settlement charge	(63)		53,213		—		—		—		—
Net periodic benefit cost (credit)	$	(302)	$	53,436	$	(76)	$	(16)	$	(891)	$	(1,467)

Plan Assumptions

	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Weighted average assumptions used in benefit obligations:
Discount rate	2.50	%	3.25	%	1.75	%	2.75	%
Weighted average assumptions used in net periodic benefit costs:
Discount rate	3.25	%	4.25	%	2.75	%	3.75	%
Expected long-term rate of return on assets	4.53	%	4.69	%	—	%	—	%

For measurement purposes as of December 31, 2020, we assumed an annual health care cost trend rate of 6.50% for covered health care benefits for retirees pre-age 65 or post-age 65. The rate was assumed to decrease gradually by 0.25% annually until

reaching 4.50% and remain at that level thereafter. For measurement purposes as of December 31, 2019, we assumed an annual health care cost trend rate of 6.75% for covered health care benefits for retirees pre-age 65 or post-age 65.

Our pension plan 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 consider future cash contributions to the plan as well as the potential of the portfolio underperforming the market. We set asset allocation target ranges based on current funding status and future projections in order to mitigate the portfolio performance risk while maintaining its funded status. Fixed income securities comprise a substantial percentage of our plan assets portfolio. As of December 31, 2020, we held approximately 90% fixed income and short-term cash securities and 10% equity securities in our portfolio, compared to December 31, 2019 when we held approximately 92% fixed income and short-term cash securities and 8% equity securities.

In determining our investment strategy and calculating the net benefit cost, we utilized an expected long-term rate of return on plan assets, which was developed based on several factors, including the plans’ asset allocation targets, the historical and projected performance on those asset classes, as well as the plan’s current asset composition. To justify our assumptions, we analyzed certain data points related to portfolio performance. Based on the historical returns and the projected future returns, we determined that a target return of 4.53% is appropriate for the current portfolio.

The following table presents the fair value of the pension plan net assets by asset category and level, within the fair value hierarchy, as of December 31, 2020 and 2019.

	Fair Value of Plan Assets as of December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Fixed income bonds	$	—	$	29,896	$	—	$	29,896
Mutual funds	3,535		—		—		3,535
Pooled separate accounts	—		518		—		518
Guaranteed deposit account	—		—		1,347		1,347
Total plan assets at fair value	$	3,535	$	30,414	$	1,347	$	35,296

	Fair Value of Plan Assets as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Fixed income bonds	$	—	$	27,704	$	—	$	27,704
Mutual funds	3,277		—		—		3,277
Pooled separate accounts	—		10,516		—		10,516
Guaranteed deposit account	—		—		1,338		1,338
Total plan assets at fair value	$	3,277	$	38,220	$	1,338	$	42,835

The following table presents a summary of changes in the fair value of the guaranteed deposit account’s Level 3 assets for the year ended December 31, 2020:

	Guaranteed Deposit Account
Balance as of January 1, 2020	$	1,338
Change in unrealized gain (loss)	34
Purchases, sales, issuances and settlements (net)	(25)
Balance as of December 31, 2020	$	1,347

Cash Flows

We were not required to make any contributions to our qualified noncontributory defined benefit pension plans in 2020 and 2019. We made a voluntary contribution of $25.0 million to the Merged Plan in 2018 as part of the proposed plan termination process. We made expected benefit payments for our defined benefit pension plans, as well as substantially settled the Merged Plan benefit obligations, through the utilization of plan assets for the funded pension plans in 2020 and 2019. As there is no funding requirement for the other postretirement benefit plans, we funded benefit payments, which were immaterial in 2020 and 2019, as incurred using cash from operations.

The benefit payments are based on the same assumptions used to measure our benefit obligations as of December 31, 2020. The following table sets forth the expected benefit payments to be paid for the pension plans and the other postretirement benefit plans:

	Pension Benefits		Other Postretirement Benefits
2021	$	1,808	$	148
2022	$	1,758	$	114
2023	$	1,778	$	130
2024	$	1,770	$	122
2025	$	1,801	$	150
2026-2030	$	8,570	$	763

Employee Savings and Investment Plan

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 annual IRS limit of $19,000. Certain eligible participants are also allowed to contribute the maximum catch-up contribution per IRS regulations. We match each eligible employee’s annual pre-tax contributions at a rate of 100% for the first 1% of the employee’s salary and 50% for the next 5% of each employee’s salary 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 $4.9 million in 2020, $4.4 million in 2019 and $5.6 million in 2018.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental & Legal

We are currently engaged in the following environmental and legal proceedings:

Voluntary Corrective Action Program

Our location 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. Remediation activities on the site are ongoing and are recorded as reductions to the accrual as they are incurred. We have incurred aggregate remediation costs of $1.7 million through December 31, 2020, and the accrual for future remediation efforts is $0.9 million.

Asbestos

Overview

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 summarizes the change in number of asbestos claims outstanding during 2020 and 2019:

	2020	2019
Claims outstanding as of January 1	592	745
New claims filed	115	251
Pending claims concluded*	(146)	(404)
Claims outstanding as of December 31	561	592

* For the year ended December 31, 2020, 126 claims were dismissed and 20 claims were settled. For the year ended December 31, 2019, 373 claims were dismissed and 31 claims were settled. Settlements totaled approximately $5.4 million for the year ended December 31, 2020, compared to $5.0 million for the year ended December 31, 2019.

Impacts on Financial Statements

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.

The liability projection period covers all current and future indemnity and defense costs through 2064, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This conclusion was based 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 expected downward trend in claims due to the average age of our claimants, which is approaching the average life expectancy.

To date, the indemnity and defense costs of our asbestos-related product liability litigation have been substantially covered by insurance. Although we have exhausted coverage under some of our insurance policies, we believe that we have applicable primary, excess and/or umbrella coverage for claims arising with respect to most of the years during which we manufactured and marketed asbestos-containing products. 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 covered 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, and no carrier had informed us it intended to terminate the agreement. We expect to continue 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 are responsible for uninsured indemnity and defense costs, and for the years ended December 31, 2020 and December 31, 2019, we paid $0.4 million and $0.7 million, respectively, related to such costs.

The amounts recorded for the asbestos-related liability and the related insurance receivables are 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 U.S., could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded.

Changes recorded in the estimated liability and estimated insurance recovery based on the projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income. For the year ended December 31, 2020, we recognized income of $0.7 million, and for the years ended December 31, 2019 and 2018 expense of $1.7 million and $0.7 million, respectively. The benefit recognized in 2020 was primarily due to a favorable change in the defense cost assumptions. The expense recognized in 2019 was primarily due to an unfavorable change in the defense cost assumptions and the inclusion of non-mesothelioma cases in the cost projections, partially offset by a corresponding favorable change in our insurance recovery expectations. The expense recognized in 2018 was primarily due to an unfavorable change in the defense cost assumptions.

Our projected asbestos-related claims and insurance receivables were as follows:

	As of December 31,
(Dollars in millions)	2020		2019
Asbestos-related liabilities	$	73.2	$	85.9
Asbestos-related insurance receivables	$	66.8	$	78.3

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 will have a material adverse impact on our results of operations, financial position or cash flows.

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Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The “Income before income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	2020		2019		2018
Domestic	$	(4,371)	$	(18,711)	$	14,381
International	72,905		73,837		96,208
Total	$	68,534	$	55,126	$	110,589

The “Income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	Current		Deferred		Total
2020
Domestic	$	5,340	$	(11,012)	$	(5,672)
International	26,610		(2,394)		24,216
Total	$	31,950	$	(13,406)	$	18,544
2019
Domestic	$	3,372	$	(16,827)	$	(13,455)
International	21,984		(722)		21,262
Total	$	25,356	$	(17,549)	$	7,807
2018
Domestic	$	(341)	$	(3,007)	$	(3,348)
International	26,604		(318)		26,286
Total	$	26,263	$	(3,325)	$	22,938

Deferred tax assets and liabilities as of December 31, 2020 and 2019, were comprised of the following:

(Dollars in thousands)	2020		2019
Deferred tax assets
Accrued employee benefits and compensation	$	6,199	$	5,730
Tax loss and credit carryforwards	17,644		17,761
Reserves and accruals	6,581		5,996
Operating leases	665		904
Capitalized research and development	14,167		11,343
Other	1,824		2,210
Total deferred tax assets	47,080		43,944
Less deferred tax asset valuation allowance	(9,250)		(14,625)
Total deferred tax assets, net of valuation allowance	37,830		29,319
Deferred tax liabilities
Depreciation and amortization	10,282		15,368
Postretirement benefit obligations	2,001		1,719
Unremitted earnings	2,426		1,624
Operating leases	714		908
Other	2,115		1,803
Total deferred tax liabilities	17,538		21,422
Net deferred tax asset (liability)	$	20,292	$	7,897

As of December 31, 2020, we had state net operating loss carryforwards ranging from $0.2 million to $4.7 million in various state taxing jurisdictions, which expire between 2022 and 2039 and approximately $8.4 million of credit carryforwards in Arizona, which will expire between 2021 and 2035. We also had $5.8 million of federal research and development (R&D) credit carryforwards that begin to expire in 2031. We believe that it is more likely than not that the benefit from certain of the state net operating loss, state R&D credits carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $8.0 million relating to these carryforwards. We currently have approximately $2.2 million of foreign tax credits that begin to expire in 2030.

We had a valuation allowance of $9.3 million as of December 31, 2020 and $14.6 million as of December 31, 2019, 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. In 2020, we released the valuation allowance of $5.3 million previously established against our R&D credit carryforwards as a result of our updated analysis, including current year utiliziation and updated future utilization. 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.

Income tax expense differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows:

(Dollars in thousands)	2020		2019		2018
Tax expense at Federal statutory income tax rate	$	14,392	$	11,576	$	23,224
Impact of foreign operations	1,193		107		826
Foreign source income, net of tax credits	1,050		(2,248)		(197)
State tax, net of federal	(313)		(690)		121
Unrecognized tax benefits	5,800		543		(869)
U.S. Tax Reform	—		—		209
Equity compensation excess tax deductions	(791)		(2,902)		(2,238)
General business credits	(931)		(656)		(2,172)
Distribution related foreign taxes	2,332		1,240		1,916
Executive compensation limitation	900		589		801
Valuation allowance change (excluding U.S. Tax Reform)	(5,375)		(2,527)		602
Disproportionate tax effect of pension settlement charges	—		2,510		—
Other	287		265		715
Income tax expense (benefit)	$	18,544	$	7,807	$	22,938

Our effective income tax rate for 2020 was 27.1% compared to 14.2% for 2019. The 2020 rate increase was primarily due to the increase in current year accruals of reserves for uncertain tax positions, the decrease in foreign tax credits available to offset foreign source income, the decrease in excess tax deductions on stock-based compensation and higher tax impact on unremitted foreign earnings and profits, partially offset by the beneficial impact of changes in valuation allowance related to R&D credits and pre-tax mix across jurisdictions with disparate tax rates.

We did not make any changes in 2020 to our position on the permanent reinvestment of our historical earnings from foreign operations. With the exception of certain Chinese subsidiaries, we continue to assert that historical foreign earnings are indefinitely reinvested. As of December 31, 2020 and 2019, we had recorded a deferred tax liability of $2.4 million and $1.6 million, respectively, for Chinese withholding tax on undistributed earnings that are not indefinitely reinvested. The other remaining foreign subsidiaries have both the intent and ability to indefinitely reinvest their undistributed earnings and we estimate that, if these undistributed earnings are distributed, they may give rise to an estimated $3.8 million of additional tax liabilities. If circumstances change and it becomes apparent that some, or all of the undistributed earnings as of December 31, 2020 will not be indefinitely reinvested, the provision for the tax consequences, if any, will be recorded in the period when circumstances change. Distributions out of current and future earnings are permissible to fund discretionary activities such as business acquisitions. However, when distributions are made, this could result in a higher effective tax rate.

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2020 and December 31, 2019, were as follows:

(Dollars in thousands)	2020		2019
Beginning balance as of January 1	$	10,217	$	9,801
Gross increases - current period tax positions	5,417		3,139
Gross increases - tax positions in prior periods	46		—
Gross decreases - tax positions in prior periods	—		—
Foreign currency exchange	8		—
Lapse of statute of limitations	—		(2,723)
Ending balance as of December 31	$	15,688	$	10,217

Included in the balance of unrecognized tax benefits as of December 31, 2020 were $15.3 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, 2020 were $0.4 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognized interest accrued related to unrecognized tax benefit as income tax expense. Related to the unrecognized tax benefits noted above, as of December 31, 2020 and 2019, we had accrued potential interest and penalties of approximately $1.2

million and $0.7 million, respectively. We have recorded a net income tax expense of $0.5 million during December 31, 2020 and net income tax expense of $0.2 million during 2019.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2016 through 2020 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 2016.

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Operating Segments and Geographic Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Operating Segments and Geographic Information

Operating Segment and Geographic Information

Our reporting structure is comprised of the following strategic operating segments: ACS, EMS and PES. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally.

Operating Segment Information

The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2020
Net sales - recognized over time	$	902	$	10,614	$	189,140	$	14,451	$	215,107
Net sales - recognized at a point in time	$	267,797	$	317,563	$	840	$	1,276	$	587,476
Total net sales	$	268,699	$	328,177	$	189,980	$	15,727	$	802,583
Operating income (loss)	$	38,202	$	30,817	$	(6,179)	$	4,494	$	67,334
Total assets	$	407,667	$	504,199	$	338,419	$	13,720	$	1,264,005
Capital expenditures	$	11,849	$	16,214	$	11,840	$	482	$	40,385
Depreciation & amortization	$	13,762	$	47,159	$	9,831	$	673	$	71,425
Investment in unconsolidated joint ventures	$	—	$	15,248	$	—	$	—	15,248
Equity income in unconsolidated joint ventures	$	—	$	4,877	$	—	$	—	$	4,877
December 31, 2019
Net sales - recognized over time	$	—	$	12,687	$	197,702	$	18,112	$	228,501
Net sales - recognized at a point in time	$	316,592	$	348,916	$	833	$	3,418	$	669,759
Total net sales	$	316,592	$	361,603	$	198,535	$	21,530	$	898,260
Operating income (loss)	$	48,654	$	57,080	$	(1,437)	$	6,184	$	110,481
Total assets	$	402,398	$	569,484	$	278,763	$	22,536	$	1,273,181
Capital expenditures	$	22,156	$	8,550	$	20,191	$	700	$	51,597
Depreciation & amortization	$	18,267	$	19,887	$	10,260	$	748	$	49,162
Investment in unconsolidated joint ventures	$	—	$	16,461	$	—	$	—	$	16,461
Equity income in unconsolidated joint ventures	$	—	$	5,319	$	—	$	—	$	5,319
December 31, 2018
Net sales - recognized over time	$	—	$	5,788	$	221,896	$	16,973	$	244,657
Net sales - recognized at a point in time	$	294,154	$	335,576	$	1,442	$	3,262	$	634,434
Total net sales	$	294,154	$	341,364	$	223,338	$	20,235	$	879,091
Operating income	$	33,827	$	52,502	$	19,648	$	6,734	$	112,711
Total assets	$	396,075	$	588,841	$	273,212	$	21,216	$	1,279,344
Capital expenditures	$	61,425	$	10,917	$	18,051	$	156	$	90,549
Depreciation & amortization	$	20,121	$	18,501	$	10,640	$	811	$	50,073
Investment in unconsolidated joint ventures	$	—	$	18,667	$	—	$	—	$	18,667
Equity income in unconsolidated joint ventures	$	—	$	5,501	$	—	$	—	$	5,501

Operating Segment Net Sales by Geographic Area

The following table presents net sales by our operating segment operations by geographic area for the years indicated:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2020
United States	$	66,411	$	128,347	$	24,411	$	3,679	$	222,848
Other Americas	2,639		8,437		304		682		12,062
Total Americas	69,050		136,784		24,715		4,361		234,910
China	115,454		108,161		37,843		2,859		264,317
Other APAC	51,742		43,364		19,088		2,162		116,356
Total APAC	167,196		151,525		56,931		5,021		380,673
Germany	11,452		19,118		59,429		410		90,409
Other EMEA	21,001		20,750		48,905		5,935		96,591
Total EMEA	32,453		39,868		108,334		6,345		187,000
Total net sales	$	268,699	$	328,177	$	189,980	$	15,727	$	802,583
December 31, 2019
United States	$	63,753	$	160,918	$	31,874	$	4,507	$	261,052
Other Americas	3,348		9,208		365		913		13,834
Total Americas	67,101		170,126		32,239		5,420		274,886
China	153,127		95,653		40,391		6,086		295,257
Other APAC	60,457		55,402		23,401		2,920		142,180
Total APAC	213,584		151,055		63,792		9,006		437,437
Germany	15,912		13,702		57,761		573		87,948
Other EMEA	19,995		26,720		44,743		6,531		97,989
Total EMEA	35,907		40,422		102,504		7,104		185,937
Total net sales	$	316,592	$	361,603	$	198,535	$	21,530	$	898,260
December 31, 2018
United States	$	52,661	$	152,284	$	37,325	$	4,527	$	246,797
Other Americas	3,104		14,453		931		773		19,261
Total Americas	55,765		166,737		38,256		5,300		266,058
China	136,315		101,036		39,781		4,959		282,091
Other APAC	63,318		40,788		28,414		2,892		135,412
Total APAC	199,633		141,824		68,195		7,851		417,503
Germany	18,165		9,907		62,359		584		91,015
Other EMEA	20,591		22,896		54,528		6,500		104,515
Total EMEA	38,756		32,803		116,887		7,084		195,530
Total net sales	$	294,154	$	341,364	$	223,338	$	20,235	$	879,091

(1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to achieve a consistent application of revenue recognition, 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 providing 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 January 1, 2018, we adopted ASU 2014-09 retrospectively with the cumulative effect of applying the standard recognized at the date of implementation and without restatement of comparative periods. This application of the new standard resulted in an increase to the January 1, 2018 balance of retained earnings of approximately $4.2 million, net of tax.

We manufacture some products to customer specifications which are customized to such a degree that it is unlikely that another entity would purchase these products or that we could modify these products for another customer. These products are deemed to have no alternative use to us whereby we have an enforceable right to payment evidenced by contractual termination clauses. In accordance with ASC 606, for those circumstances we recognize revenue on an over-time basis. Revenue recognition does not occur until the product meets the definition of “no alternative use” and therefore, items that have not yet reached that point in the production process are not included in the population of items with over-time revenue recognition.

As appropriate, we record estimated reductions to revenue for customer returns, allowances, and warranty claims. Provisions for such reductions are made at the time of sale and are typically derived from historical trends and other relevant information.

We had contract assets primarily related to unbilled revenue for revenue recognized related to products that are deemed to have no alternative use whereby we have the right to payment. Revenue is recognized in advance of billing to the customer in these circumstances as billing is typically performed at the time of shipment to the customer. The unbilled revenue is included in the contract assets on the consolidated statements of financial position.

Our contract assets by operating segment were as follows:

	As of December 31,
(Dollars in thousands)	2020		2019
Advanced Connectivity Solutions	$	750	$	—
Elastomeric Material Solutions	887		1,077
Power Electronics Solutions	23,449		19,471
Other	1,489		1,907
Total contract assets	$	26,575	$	22,455

We did not have any contract liabilities as of December 31, 2020 or 2019. No impairment losses were recognized for the years ended December 31, 2020 or 2019 on any receivables or contract assets arising from our contracts with customers.

Long-Lived Assets by Geographic Area

Our long-lived assets(1) by geographic area were as follows:

	As of December 31,
(Dollars in thousands)	2020		2019
United States	$	432,497	$	469,234
China	48,850		55,078
Germany	133,168		120,869
Other	46,061		36,942
Total long-lived assets	$	660,576	$	682,123

(1) Long-lived assets are based on the location of the asset and are comprised of goodwill, other intangible assets and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed.

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Supplemental Financial Information

12 Months Ended

Dec. 31, 2020

Supplemental Income Statement Elements [Abstract]

Supplemental Financial Information

Supplemental Financial Information

Restructuring and Impairment Charges

The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Restructuring charges
Manufacturing footprint optimization	$	12,348	$	—	$	—
Facility consolidation	—		948		1,982
Global headquarters relocation	—		—		550
Restructuring charges	12,348		948		2,532
Impairment charges
Fixed assets impairment charges	587		1,537		1,506
Other impairment charges	52		—		—
Impairment charges	639		1,537		1,506
Total restructuring and impairment charges	$	12,987	$	2,485	$	4,038

Restructuring Charges - Manufacturing Footprint Optimization

During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our PES and ACS operating segments, in order to achieve greater cost competitiveness as well as align capacity with end market demand. We expect the majority of the restructuring activities to be completed by the end of the first half of 2021. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the year ended December 31, 2020:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance and Related Benefits
Balance as of December 31, 2019	$	—
Provisions	11,451
Payments	(819)
Foreign currency translation adjustment	371
Balance as of December 31, 2020	$	11,003

Restructuring Charges - Facility Consolidation & Global Headquarters Relocation

In 2018, we made the decision to consolidate our Santa Fe Springs, California operations into our facilities in Carol Stream, Illinois and Bear, Delaware. We recorded $0.9 million and $2.0 million of restructuring charges in 2019 and 2018, respectively, related to the facility consolidation. In 2017, we relocated our global headquarters from Rogers, Connecticut to Chandler, Arizona. We recorded $0.6 million of restructuring charges in 2018 related to the headquarters relocation.

Impairment Charges

We recognized $0.6 million of impairment charges in 2020, primarily related to fixed assets in Belgium pertaining to our ACS operating segment and a building lease in Hungary pertaining to our PES operating segment. We recognized $1.5 million of impairment charges in both 2019 and 2018 pertaining to our ACS operating segment, primarily on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition.

Allocation of Restructuring and Impairment Charges to Operating Segments

The following table summarizes the allocation of restructuring and impairment charges to our operating segments:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Advanced Connectivity Solutions
Allocated restructuring charges	$	4,288	$	—	$	244
Allocated impairment charges	335		1,537		1,506
Elastomeric Material Solutions
Allocated restructuring charges	401		948		2,152
Allocated impairment charges	52		—		—
Power Electronics Solutions
Allocated restructuring charges	7,659		—		136
Allocated impairment charges	252		—		—
Total restructuring and impairment charges	$	12,987	$	2,485	$	4,038

Other Operating (Income) Expense, Net

The components of “Other operating (income) expense, net” were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Lease income	$	—	$	(989)	$	(948)
Depreciation on leased assets	—		1,907		3,512
Loss (gain) on sale or disposal of property, plant and equipment	41		756		(164)
Gain from antitrust litigation settlement	—		—		(4,231)
Indemnity claim settlements from acquisitions	—		(715)		(700)
Economic incentive grants	(145)		—		(556)
Total other operating (income) expense, net	$	(104)	$	959	$	(3,087)

In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018, we recognized lease income and related depreciation on leased assets of $1.0 million and $1.9 million, respectively, in 2019, and $0.9 million and $3.5 million, respectively, in 2018. In 2019, we recorded a gain of $0.7 million for the settlement of indemnity claims related to the Isola asset acquisition.

In 2018, we recorded a gain from the settlement of antitrust litigation in the amount of $4.2 million as a result of the settlement of a class action lawsuit, filed in 2005, which alleged that Dow Chemical Company and other urethane raw material suppliers unlawfully agreed to fix, raise, maintain or stabilize the prices of polyether polyol products sold in the U.S. from January 1, 1999 through December 31, 2004 in violation of the federal antitrust laws. We also recorded a gain of $0.7 million for the settlement of indemnity claims related to the DSP acquisition and income of $0.6 million from economic incentive grants related to the relocation of our global headquarters from Rogers, Connecticut to Chandler, Arizona.

Interest Expense, Net

The components of “Interest expense, net” were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Interest on revolving credit facility	$	3,294	$	7,378	$	6,304
Interest rate swap settlements	3,191		(200)		(247)
Line of credit fees	715		576		573
Debt issuance amortization costs	593		552		552
Interest on finance leases	134		127		172
Interest income	(939)		(1,610)		(804)
Other	147		46		79
Total interest expense, net	$	7,135	$	6,869	$	6,629

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Recent Accounting Standards

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Recent Accounting Standards

Recent Accounting Standards

Recently Issued Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We adopted this ASU as of the effective date and will utilize the optional expedients to the extent they apply to us. Our revolving credit facility under the Fourth Amended Credit Agreement, which was entered into on October 16, 2020 and references LIBOR, contains certain provisions for alternative reference rates in the event LIBOR becomes unavailable. Additionally, we terminated our interest rate swap, which also referenced LIBOR, on September 30, 2020. As of December 31, 2020, we have no existing contracts or agreements that reference LIBOR, for which there is not an established alternative reference rate in anticipation of the phase out of LIBOR. As a result, we are unlikely to need to apply this guidance in the future.

In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method be applied for all convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either the modified retrospective or the retrospective approach. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements.

Recently Adopted Standards Reflected in Our 2020 Financial Statements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our consolidated financial statements.

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Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

Quarterly Results of Operations (Unaudited)

	2020
(Dollars in thousands, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	198,810	$	191,157	$	201,944	$	210,672
Gross margin	$	65,630	$	69,969	$	75,518	$	80,703
Net income	$	13,259	$	14,520	$	7,006	$	15,205
Net income per share:
Basic	$	0.71	$	0.78	$	0.37	$	0.82
Diluted	$	0.71	$	0.78	$	0.37	$	0.81

	2019
(Dollars in thousands, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	239,798	$	242,852	$	221,842	$	193,768
Gross margin	$	85,394	$	85,828	$	78,867	$	64,203
Net income (loss)	$	28,399	$	24,293	$	23,387	$	(28,760)
Net income (loss) per share:
Basic	$	1.53	$	1.31	$	1.26	$	(1.55)
Diluted	$	1.52	$	1.30	$	1.25	$	(1.55)

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Share Repurchases

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Share Repurchases

Share Repurchases

In 2015, we initiated a share repurchase program (the Program) of up to $100.0 million of the Company’s capital stock. We initiated the 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, 2020, $49.0 million remained of our $100.0 million share repurchase program. There were no share repurchases in 2020.

We repurchased the following shares of capital stock through the Program, using cash from operations and cash on hand, during the years presented below:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Shares of capital stock repurchased	—		—		23,138
Value of capital stock repurchased	$	—	$	—	$	2,999

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Subsequent Event

12 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea. The site was safely evacuated and there were no reported injuries; however, there is extensive damage to the manufacturing site. The source of the fire is currently under investigation.

This facility manufactures eSorba® polyurethane foams used in portable electronics and display applications. These operations will be disrupted, but it is too early to determine the expected duration of the disruption.

We acquired the UTIS business in 2010, and we employ approximately 50 people at this site. The UTIS business represented less than 4% of our annual net sales in 2020. The impacts of this event on our results of operations, financial position and cash flows are unknown at this time due to the continuing assessment of the extent of the damage to our manufacturing site, the extent of the disruption to our business and the amounts of potential insurance recoveries.

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SCHEDULE II

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II

SCHEDULE II

(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 Credit Losses
December 31, 2020	$	1,691	$	223	$	(232)	$	—	$	1,682
December 31, 2019	$	1,354	$	437	$	(100)	$	—	$	1,691
December 31, 2018	$	1,525	$	189	$	(360)	$	—	$	1,354

(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, 2020	$	14,625	$	(39)	$	(5,336)	$	—	$	9,250
December 31, 2019	$	16,889	$	656	$	(2,920)	$	—	$	14,625
December 31, 2018	$	8,754	$	8,135	$	—	$	—	$	16,889

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Basis of Presentation, Organization and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

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 intercompany balances and transactions. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States (U.S. GAAP), 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 three strategic 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 infrastructure (e.g., power amplifiers, antennas and small cells), automotive (e.g., ADAS, telematics and thermal solutions), aerospace and defense (e.g. antenna systems, communication systems and phased array radar systems), connected devices (e.g., mobile internet devices and thermal solutions) and wired infrastructure (e.g., computing and IP infrastructure) markets. We believe these products have characteristics that offer performance and other functional advantages in many market applications that serve to differentiate our products from other commonly available materials. ACS products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits. Trade names for our ACS products include: RO4000® Series, RO3000® Series, RT/duroid®, CLTE Series®, TMM®, AD Series®, DiClad® Series, CuClad® Series, Kappa®, COOLSPAN®, TC Series®, 92ML™, IsoClad® Series, MAGTREX™, XTremeSpeed RO1200™ Laminates, IM Series™, 2929 Bondply, 3001 Bondply Film and SpeedWave™ Prepreg. As of December 31, 2020, our ACS operating segment had 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 engineered material solutions for a wide variety of applications and markets. These include polyurethane and silicone materials used in cushioning, gasketing and sealing, and vibration management applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense, footwear and impact mitigation and printing markets; customized silicones used in flex heater and semiconductor thermal applications for general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications for general industrial, automotive and aerospace and defense markets. We believe 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). Trade names for our EMS products include: PORON®, BISCO®, DeWAL®, ARLON®, eSorba®, Griswold®, XRD®, R/bak® and HeatSORB™.

As of December 31, 2020, our EMS operating segment had administrative and manufacturing facilities in Moosup, Connecticut; Rogers, Connecticut; Woodstock, Connecticut; Bear, Delaware; Carol Stream, Illinois; Narragansett, Rhode Island; Ansan, South Korea; and Suzhou, China. We also own 50% of two unconsolidated joint ventures: (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 the 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, busbars and cooling solutions for a variety of applications in EV/HEV, general industrial, mass transit, renewable energy, aerospace and defense and wired infrastructure markets. We sell our ceramic substrate materials and cooling solutions under the curamik® trade name and our busbars under the ROLINX® trade name. As of December 31, 2020, our PES operating segment had manufacturing and administrative facilities in Evergem, Belgium; Eschenbach, Germany; Budapest, Hungary; and Suzhou, China.

Other

Our Other operating segment consists of elastomer components for applications in general industrial market, as well as elastomer floats for level sensing in fuel tanks, motors, and storage tanks applications in the general industrial and automotive markets. We sell our elastomer components under our ENDUR® trade name and our floats under our NITROPHYL® trade name.

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, both of which are 50% owned, using the equity method of accounting.

Foreign Currency

Foreign CurrencyAll 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 Credit Losses

Allowance for Credit Losses

In 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, we changed our impairment model to utilize a current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including our accounts receivable. CECL estimates on accounts receivable are recorded as selling, general and administrative expenses on our consolidated statements of operations. The cumulative effect adjustment from adoption was immaterial to our consolidated financial statements.

The allowance for credit losses 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 our 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 the normal capacity of the production facilities.

Property, Plant and Equipment

Property, Plant and EquipmentProperty, plant and equipment are stated on the basis of cost.

Software Costs

Software Costs

We capitalize certain internal and external costs of computer software developed or obtained for internal use, principally related to software coding, software configuration, designing system interfaces and installation and testing of the software. We amortize capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three to five years. Net capitalized software and development costs were $0.3 million and $0.2 million for the years ended December 31, 2020 and 2019, 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

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 its 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, 2020.

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 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 10.5% for EMS to 13.1% for ECD, and terminal growth rates ranging from 3.4% for curamik® to 4.2% for ACS. 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 for the year ended December 31, 2020. Our ACS, EMS, curamik® and ECD reporting units had allocated goodwill of $51.7 million, $143.0 million, $73.2 million and $2.2 million respectively, as of December 31, 2020.

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 an impairment charge is recognized for the excess and charged to operations. Consistent with historical practice, the annual impairment test on these reporting units was performed as of November 30, 2020. 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 for the year ended December 31, 2020. The curamik® reporting unit had an indefinite-lived other intangible asset of $4.8 million as of December 31, 2020.

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 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 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 immaterial impairment charges resulting from our definite-lived other intangible assets impairment analysis for the year ended December 31, 2020. Our ACS, EMS and curamik® reporting units had definite-lived other intangible assets of $3.7 million, $101.2 million and $8.2 million, respectively, as of December 31, 2020.

The useful life determination for each indefinite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances support an indefinite useful life. The useful life determination for each definite-lived other intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization.

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 review our asbestos-related projections annually in the fourth quarter of each year unless facts and circumstances materially change during the year, at which time we would analyze these projections. We believe the assumptions made on the potential exposure and expected insurance coverage are reasonable at the present time, but are subject to uncertainty based on the actual future outcome of our asbestos litigation. 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 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, average indemnity costs, average defense costs, 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 assumptions are subject to even greater uncertainty as the projection period lengthens. 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 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. Given the inherent uncertainty in making projections, we plan to re-examine periodically the assumptions used in 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. Our accrued asbestos liabilities may not approximate our actual asbestos-related indemnity and defense costs, and our accrued insurance recoveries may not 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 that could exceed existing reserves and insurance recoveries.

Fair Value of Financial Instruments

Fair Value of Financial InstrumentsManagement 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.

Hedging Transactions and Derivative Financial Instruments

Hedging Transactions and Derivative Financial Instruments

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 (loss). 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.”

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. As of December 31, 2020 and 2019, there were no customers that individually accounted for more than 10% of total accounts receivable. We did not experience significant credit losses on customers’ accounts in 2020, 2019 or 2018.

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 U.S. and in numerous foreign jurisdictions. We account for income taxes following Accounting Standards Codification (ASC) 740, 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.

We did not make any changes in 2020 to our position on the permanent reinvestment of our historical earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, we continue to assert that historical foreign earnings are indefinitely reinvested. As of December 31, 2020 and 2019, we recorded a deferred tax liability of $2.4 million and $1.6 million, respectively, for Chinese withholding tax on undistributed earnings that are not indefinitely reinvested. The other remaining foreign subsidiaries have both the intent and ability to indefinitely reinvest their undistributed earnings and we estimate that, if these undistributed earnings are distributed, they may give rise to an estimated $3.8 million of additional tax liabilities. If circumstances change and it becomes apparent that some, or all of the undistributed earnings as of December 31, 2020 will not be indefinitely reinvested, the provision for the tax consequences, if any, will be recorded in the period when circumstances change. Distributions out of current and future earnings are permissible to fund discretionary activities such as business acquisitions. However, when distributions are made, this could result in a higher effective tax rate.

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 item in the consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line item in the consolidated statements of financial position.

Revenue Recognition

Revenue Recognition

Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. We recognize revenue when all of the following criteria are met: (1) we have entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of our shipping terms permit us to recognize revenue at point of shipment. Some shipping terms require the goods to be cleared 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. Shipping and handling costs are treated as fulfillment costs. Sales tax or VAT are excluded from the measurement of the transaction price.

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

We sponsor one material defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which covers certain union employees, and we sponsor multiple fully insured or self-funded medical plans and fully insured life insurance plans for retirees. The Union Plan was frozen in 2013 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 rates 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 bond index; (ii) the long-term rate of return on plan assets is determined based on historical portfolio results, market conditions and our expectations of future returns; 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 determine these assumptions based on consultation with outside actuaries and investment advisors. Any changes in these assumptions could have a significant impact on our assets and liabilities. We review these assumptions periodically throughout the year and update as necessary.

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 a plan’s obligations that determine our funded status as of the end of the 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 loss. Additionally, actuarial losses (gains) that are not immediately recognized as net periodic pension cost (credit) are recognized as a component of accumulated other comprehensive loss (income) and amortized into net periodic pension cost (credit) in future periods.

Investments were stated at fair value as of the dates reported. Securities traded on a national securities exchange were valued at the last reported sales price on the last business day of the plan year. Fixed-income bonds were valued using price evaluations provided by independent pricing services. 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 recordkeeper, on the last business day of the relevant 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 Company assets for investment purposes.

Restructuring Activities

Restructuring Activities

We record charges associated with restructuring activities, such as employee termination benefits, which represent a one-time benefit, when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with restructuring activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs.

Advertising Costs

Advertising CostsAdvertising costs are expensed as incurred

Earnings Per Share

Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

Equity Compensation

Equity Compensation

Equity compensation mainly consists of expense related to restricted stock units and deferred stock units.

Performance-based restricted stock unit compensation expense is based on achievement of both market and service conditions. The fair value of these awards is determined based on a Monte Carlo simulation valuation model on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards.

Time-based restricted stock unit compensation expense is based on the achievement of only service conditions. The fair value of these awards is determined based on the market value of the underlying stock price on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period.

Deferred stock units, which are granted to non-management directors, are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the director elects to defer the receipt of those shares. The fair value of these awards is determined based on the market value of the underlying stock price on the grant date. The compensation related to these grants is expensed immediately on the date of grant.

Recent Accounting Standards

Recently Issued Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued after reference rate reform. This ASU provides optional expedients and exceptions to accounting under GAAP for contract modifications that replace a reference rate affected by reference rate reform. The amendments in this update were effective as of March 12, 2020 and we may elect to apply the amendments to contract modifications or hedging relationships entered into through December 31, 2022. We adopted this ASU as of the effective date and will utilize the optional expedients to the extent they apply to us. Our revolving credit facility under the Fourth Amended Credit Agreement, which was entered into on October 16, 2020 and references LIBOR, contains certain provisions for alternative reference rates in the event LIBOR becomes unavailable. Additionally, we terminated our interest rate swap, which also referenced LIBOR, on September 30, 2020. As of December 31, 2020, we have no existing contracts or agreements that reference LIBOR, for which there is not an established alternative reference rate in anticipation of the phase out of LIBOR. As a result, we are unlikely to need to apply this guidance in the future.

In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method be applied for all convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either the modified retrospective or the retrospective approach. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements.

Recently Adopted Standards Reflected in Our 2020 Financial Statements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss model with a new expected loss impairment model that applies to certain financial assets measured at amortized cost, including trade and other receivables and contract assets. We adopted this update in January 2020 using the modified-retrospective approach, and it did not have a material impact on our consolidated financial statements.

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Basis of Presentation, Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of inventory

Our “Inventories” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Raw materials	$	44,976	$	61,338
Work-in-process	25,291		30,043
Finished goods	32,093		41,478
Total inventories	$	102,360	$	132,859

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:

Property, Plant and Equipment Classification	Estimated Useful Lives
Buildings and improvements	30-40 years
Machinery and equipment	5-15 years
Office equipment	3-10 years

Our “Property, plant and equipment, net” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Land and improvements	$	22,589	$	21,697
Buildings and improvements	155,669		165,968
Machinery and equipment	324,773		281,771
Office equipment	59,001		68,349
Property plant and equipment, gross	562,032		537,785
Accumulated depreciation	(365,844)		(341,119)
Property, plant and equipment, net	196,188		196,666
Equipment in process	76,190		63,580
Total property, plant and equipment, net	$	272,378	$	260,246

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of available-for-sale investments measured at fair value on a recurring basis, categorized by level of inputs used in the valuation

Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Available-for-Sale Investment at Fair Value as of December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Pension surplus investment(1)	$	6,706	$	2,400	$	—	$	9,106

(1) This balance was invested in funds comprised of short-term cash and fixed income securities, and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of December 31, 2020, the fair value of this investment approximated its carrying value.

Schedule of derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation

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, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(130)	$	—	$	(130)
Copper derivative contracts	$	—	$	4,785	$	—	$	4,785
Interest rate swap contract	$	—	$	—	$	—	$	—

	Derivative Instruments at Fair Value as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(6)	$	—	$	(6)
Copper derivative contracts	$	—	$	1,147	$	—	$	1,147
Interest rate swap contract	$	—	$	(1,254)	$	—	$	(1,254)

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the consolidated statements of financial position, except the 2019 interest rate swap balance, which was recorded in the “Other long-term liabilities” line item.

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Hedging Transactions and Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional values of outstanding derivative positions and volume of copper contracts outstanding

As of December 31, 2020 the notional values of these foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	28,766,855
EUR/USD	€	8,151,124
KRW/USD	₩	10,893,500,000

As of December 31, 2020, the volume of our copper contracts outstanding were as follows:

Volume of Copper Derivatives
January 2021 - March 2021	256 metric tons per month
April 2021 - June 2021	256 metric tons per month
July 2021 - September 2021	222 metric tons per month
October 2021 - December 2021	222 metric tons per month

Schedule of gain (loss) on derivative instruments

Effects on Financial Statements

The following table presents the impact from these instruments on the statement of operations and statements of comprehensive income:

		Years Ended December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019		2018
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(1,981)	$	(779)	$	(333)
Copper Derivatives Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	3,610	$	(716)	$	(2,101)
Interest Rate Swap Contract
Contract designated as hedging instrument	Other comprehensive income (loss)	$	1,254	$	(1,715)	$	420

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Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Accumulated balances related to each component of accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive loss by component for each of the fiscal years in the two-year period ended December 31, 2020 were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Derivative Instrument Designated as Cash Flow Hedge(2)		Total
Balance as of December 31, 2018	$	(30,488)	$	(48,700)	$	354	$	(78,834)
Other comprehensive income (loss) before reclassifications	(4,990)		(6,079)		(1,171)		(12,240)
Amounts reclassified to earnings	—		44,324		(155)		44,169
Net other comprehensive income (loss) for period	(4,990)		38,245		(1,326)		31,929
Balance as of December 31, 2019	(35,478)		(10,455)		(972)		(46,905)
Other comprehensive income (loss) before reclassifications	24,907		1,255		(1,504)		24,658
Amounts reclassified to earnings	—		196		2,476		2,672
Net other comprehensive income (loss) for period	24,907		1,451		972		27,330
Balance as of December 31, 2020	$	(10,571)	$	(9,004)	$	—	$	(19,575)

(1) Net of taxes of $1,951, $2,368 and $9,984 for the years ended December 31, 2020, 2019 and 2018, respectively.

(2) Net of taxes of $0, $282 and ($106) for the years ended December 31, 2020, 2019 and 2018, respectively.

Reclassification out of accumulated other comprehensive income (loss)

The impacts to the consolidated statements of operations related to items reclassified to earnings were as follows:

		Years Ended December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Amortization/settlement of pension and other postretirement benefits
	Pension settlement charges	$	63	$	(53,213)
	Other income (expense), net(1)	(315)		(504)
	Income tax (expense) benefit	56		9,393
	Net income	$	(196)	$	(44,324)
Unrealized gains (losses) on derivative instrument(2)
	Other income (expense), net	$	(3,191)	$	200
	Income tax (expense) benefit	715		(45)
	Net income	$	(2,476)	$	155

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. For additional details, refer to “Note 11 – Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan.”

(2) This relates to the derivative instrument designated as a cash flow hedge and held as of the end of the year for each year presented.

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

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:

Property, Plant and Equipment Classification	Estimated Useful Lives
Buildings and improvements	30-40 years
Machinery and equipment	5-15 years
Office equipment	3-10 years

Our “Property, plant and equipment, net” line item in the consolidated statements of financial position consisted of the following:

	As of December 31,
(Dollars in thousands)	2020		2019
Land and improvements	$	22,589	$	21,697
Buildings and improvements	155,669		165,968
Machinery and equipment	324,773		281,771
Office equipment	59,001		68,349
Property plant and equipment, gross	562,032		537,785
Accumulated depreciation	(365,844)		(341,119)
Property, plant and equipment, net	196,188		196,666
Equipment in process	76,190		63,580
Total property, plant and equipment, net	$	272,378	$	260,246

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020, by operating segment, were as follows:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2019	$	51,694	$	142,030	$	66,982	$	2,224	$	262,930
Foreign currency translation adjustment	—		991		6,251		—		7,242
December 31, 2020	$	51,694	$	143,021	$	73,233	$	2,224	$	270,172

Intangible assets

The changes in the carrying amount of other intangible assets for the two-year period ending December 31, 2020, were as follows:

	December 31, 2020						December 31, 2019
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	150,863	$	72,014	$	78,849	$	149,317	$	39,018	$	110,299
Technology	83,469		53,540		29,929		80,938		45,190		35,748
Trademarks and trade names	12,039		8,149		3,890		11,994		4,361		7,633
Covenants not to compete	1,340		827		513		1,340		505		835
Total definite-lived other intangible assets	247,711		134,530		113,181		243,589		89,074		154,515
Indefinite-lived other intangible asset	4,845		—		4,845		4,432		—		4,432
Total other intangible assets	$	252,556	$	134,530	$	118,026	$	248,021	$	89,074	$	158,947

Weighted average amortization period, by intangible asset class

The weighted average amortization period as of December 31, 2020, by definite-lived other intangible asset class, is presented in the table below:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	6.10
Technology	3.90
Trademarks and trade names	4.85
Covenants not to compete	1.27
Total definite-lived other intangible assets	5.45

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Years Ended December 31,
(Dollars and shares in thousands, except per share amounts)	2020		2019		2018
Numerator:
Net income	$	49,990	$	47,319	$	87,651
Denominator:
Weighted average shares outstanding - basic	18,681		18,573		18,374
Effect of dilutive shares	25		140		285
Weighted average shares outstanding - diluted	18,706		18,713		18,659
Basic earnings per share	$	2.68	$	2.55	$	4.77
Diluted earnings per share	$	2.67	$	2.53	$	4.70

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Capital Stock and Equity Compensation (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020	2019
Shares reserved for issuance under outstanding restricted stock unit awards	324,260	315,571
Deferred compensation to be paid in stock, including deferred stock units	12,715	7,681
Additional shares reserved for issuance under Rogers Corporation 2019 Long-Term Equity Compensation Plan	918,809	1,063,920
Shares reserved for issuance under the Rogers Corporation Global Stock Ownership Plan for Employees	78,678	91,670
Total	1,334,462	1,478,842

Schedule of weighted-average assumptions used

	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Weighted average assumptions used in benefit obligations:
Discount rate	2.50	%	3.25	%	1.75	%	2.75	%
Weighted average assumptions used in net periodic benefit costs:
Discount rate	3.25	%	4.25	%	2.75	%	3.75	%
Expected long-term rate of return on assets	4.53	%	4.69	%	—	%	—	%

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 for each material award granted in 2020, 2019 and 2018:

	February 12, 2020	June 3, 2019	February 7, 2019	September 17, 2018	February 8, 2018
Expected volatility	41.0%	39.7%	36.7%	36.6%	34.8%
Expected term (in years)	2.9	2.6	2.9	3.0	3.0
Risk-free interest rate	1.41%	1.78%	2.43%	2.85%	2.28%

Schedule of restricted stock and restricted stock activity

A summary of activity of the outstanding performance-based restricted stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	106,943	$	161.33	142,434	$	110.19	169,202	$	97.16
Awards granted	87,244	131.99		112,160	114.22		75,760	163.55
Stock issued	(75,486)	111.54		(135,032)	69.10		(81,230)	131.72
Awards forfeited	(7,642)	179.89		(12,619)	152.22		(21,298)	114.40
Awards outstanding as of December 31	111,059	$	170.84	106,943	$	161.33	142,434	$	110.19

Time Based Restricted Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of restricted stock and restricted stock activity

A summary of activity of the outstanding time-based restricted stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	101,685	$	122.68	117,476	$	116.10	173,331	$	69.10
Awards granted	58,807	116.87		62,115	126.92		46,810	143.93
Stock issued	(50,868)	111.16		(68,111)	81.53		(82,921)	84.92
Awards forfeited	(7,482)	122.87		(9,795)	116.52		(19,744)	112.06
Awards outstanding as of December 31	102,142	$	120.16	101,685	$	122.68	117,476	$	116.10

Deferred Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of restricted stock and restricted stock activity

A summary of activity of the outstanding deferred stock units for 2020, 2019 and 2018 is presented below:

	2020			2019			2018
	Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value		Awards Outstanding	Weighted- Average Grant Date Fair Value
Awards outstanding as of January 1	7,150	$	170.89	8,400	$	108.86	9,250	$	109.48
Awards granted	10,400	108.88		5,950	183.40		8,400	108.86
Stock issued	(5,100)	183.40		(7,200)	108.86		(9,250)	109.48
Awards outstanding as of December 31	12,450	$	113.96	7,150	$	170.89	8,400	$	108.86

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Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of lease expense, payments for operating leases, and information related to lease term and discount rates

Our expenses and payments for operating leases were as follows:

	Year Ended December 31,
(Dollars in thousands)	2020		2019		2018
Operating leases expense	$	3,257	$	3,119	$	3,850
Short-term leases expense	$	464	$	192	$	112
Payments on operating lease obligations	$	2,893	$	2,967	$	3,850

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:

	Finance Leases	Operating Leases
Weighted Average Remaining Lease Term	0.8 years	2.5 years
Weighted Average Discount Rate	3.07%	4.57%

Schedule of assets and liabilities balance related to finance and operating leases

Our assets and liabilities balances related to finance and operating leases reflected in the consolidated statements of financial position, were as follows:

		As of December 31,
(Dollars in thousands)	Financial Statement Line Item	2020		2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	7,017	$	6,280
Operating lease right-of-use assets	Other long-term assets	$	4,216	$	4,656
Finance lease obligations, current portion	Other accrued liabilities	$	4,755	$	400
Finance lease obligations, non-current portion	Other long-term liabilities	$	322	$	4,140
Total finance lease obligations		$	5,077	$	4,540
Operating lease obligations, current portion	Other accrued liabilities	$	2,275	$	2,343
Operating lease obligations, non-current portion	Other long-term liabilities	$	2,219	$	2,334
Total operating lease obligations		$	4,494	$	4,677

Schedule of finance lease liability maturity

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of December 31, 2020:

	Finance		Operating
(Dollars in thousands)	Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2021	4,787		2,435		(93)		2,342
2022	194		1,513		(101)		1,412
2023	187		788		(65)		723
2024	—		299		(40)		259
Thereafter	—		42		(37)		5
Total lease payments	5,168		5,077		(336)		4,741
Less: Interest	(91)		(259)		12		(247)
Present Value of Net Future Minimum Lease Payments	$	5,077	$	4,818	$	(324)	$	4,494

Schedule of operating lease liability maturity

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of December 31, 2020:

	Finance		Operating
(Dollars in thousands)	Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2021	4,787		2,435		(93)		2,342
2022	194		1,513		(101)		1,412
2023	187		788		(65)		723
2024	—		299		(40)		259
Thereafter	—		42		(37)		5
Total lease payments	5,168		5,077		(336)		4,741
Less: Interest	(91)		(259)		12		(247)
Present Value of Net Future Minimum Lease Payments	$	5,077	$	4,818	$	(324)	$	4,494

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Change in benefit obligation

The following table summarizes the change in plan benefit obligations and changes in plan assets:

	Pension Benefits				Other Postretirement Benefits
(Dollars in thousands)	2020		2019		2020		2019
Change in plan benefit obligations:
Benefit obligation as of January 1	$	30,300	$	172,608	$	1,599	$	1,803
Service cost			—		56		61
Interest cost	908		5,641		40		59
Actuarial (gain) loss	491		23,797		—		(51)
Benefit payments	(1,647)		(9,262)		(192)		(273)
Pension settlements	237		(162,484)		—		—
Benefit obligation as of December 31	$	30,289	$	30,300	$	1,503	$	1,599
Change in plan assets:
Fair value of plan assets as of January 1	$	42,835	$	191,652	$	—	$	—
Actual return on plan assets	3,615		22,888		—		—
Employer contributions	—		41		192		273
Benefit payments	(1,647)		(9,262)		(192)		(273)
Transfer related to plan termination	(9,744)		—		—		—
Pension settlements	237		(162,484)		—		—
Fair value of plan assets as of December 31	$	35,296	$	42,835	$	—	$	—
Amount overfunded (underfunded)	$	5,007	$	12,535	$	(1,503)	$	(1,599)

Change in plan assets

The following table summarizes the change in plan benefit obligations and changes in plan assets:

	Pension Benefits				Other Postretirement Benefits
(Dollars in thousands)	2020		2019		2020		2019
Change in plan benefit obligations:
Benefit obligation as of January 1	$	30,300	$	172,608	$	1,599	$	1,803
Service cost			—		56		61
Interest cost	908		5,641		40		59
Actuarial (gain) loss	491		23,797		—		(51)
Benefit payments	(1,647)		(9,262)		(192)		(273)
Pension settlements	237		(162,484)		—		—
Benefit obligation as of December 31	$	30,289	$	30,300	$	1,503	$	1,599
Change in plan assets:
Fair value of plan assets as of January 1	$	42,835	$	191,652	$	—	$	—
Actual return on plan assets	3,615		22,888		—		—
Employer contributions	—		41		192		273
Benefit payments	(1,647)		(9,262)		(192)		(273)
Transfer related to plan termination	(9,744)		—		—		—
Pension settlements	237		(162,484)		—		—
Fair value of plan assets as of December 31	$	35,296	$	42,835	$	—	$	—
Amount overfunded (underfunded)	$	5,007	$	12,535	$	(1,503)	$	(1,599)

Amounts recognized in consolidated balance sheet

Our pension-related balances reflected in the consolidated statements of financial position consisted of the following:

	Pension Benefits				Other Postretirement Benefits
	As of December 31,				As of December 31,
(Dollars in thousands)	2020		2019		2020		2019
Assets & Liabilities:
Non-current assets	$	5,278	$	12,790	$	—	$	—
Current liabilities	(14)		(5)		(148)		(282)
Non-current liabilities	(257)		(250)		(1,355)		(1,317)
Net assets (liabilities)	$	5,007	$	12,535	$	(1,503)	$	(1,599)
Accumulated Other Comprehensive Loss:
Net actuarial (loss) gain	$	(11,171)	$	(13,085)	$	119	$	54
Prior service benefit	—		—		97		209
Accumulated other comprehensive (loss) income	$	(11,171)	$	(13,085)	$	216	$	263

Schedule of net periodic benefit cost not yet recognized

Our pension-related balances reflected in the consolidated statements of financial position consisted of the following:

	Pension Benefits				Other Postretirement Benefits
	As of December 31,				As of December 31,
(Dollars in thousands)	2020		2019		2020		2019
Assets & Liabilities:
Non-current assets	$	5,278	$	12,790	$	—	$	—
Current liabilities	(14)		(5)		(148)		(282)
Non-current liabilities	(257)		(250)		(1,355)		(1,317)
Net assets (liabilities)	$	5,007	$	12,535	$	(1,503)	$	(1,599)
Accumulated Other Comprehensive Loss:
Net actuarial (loss) gain	$	(11,171)	$	(13,085)	$	119	$	54
Prior service benefit	—		—		97		209
Accumulated other comprehensive (loss) income	$	(11,171)	$	(13,085)	$	216	$	263

Components of net periodic benefit cost

The components of net periodic benefit cost (credit) were as follows:

	Pension Benefits						Other Postretirement Benefits
	Years Ended December 31,						Years Ended December 31,
(Dollars in thousands)	2020		2019		2018		2020		2019		2018
Service cost			$	—	$	—	$	56	$	61	$	73
Interest cost	908		5,641		6,758		40		59		62
Expected return of plan assets	(1,574)		(6,932)		(8,662)		—		—		—
Amortization of prior service credit	—		—		—		(112)		(1,011)		(1,602)
Amortization of net loss (gain)	427		1,514		1,828		—		—		—
Settlement charge	(63)		53,213		—		—		—		—
Net periodic benefit cost (credit)	$	(302)	$	53,436	$	(76)	$	(16)	$	(891)	$	(1,467)

Schedule of weighted-average assumptions used

	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Weighted average assumptions used in benefit obligations:
Discount rate	2.50	%	3.25	%	1.75	%	2.75	%
Weighted average assumptions used in net periodic benefit costs:
Discount rate	3.25	%	4.25	%	2.75	%	3.75	%
Expected long-term rate of return on assets	4.53	%	4.69	%	—	%	—	%

Schedule of allocation of plan assets

The following table presents the fair value of the pension plan net assets by asset category and level, within the fair value hierarchy, as of December 31, 2020 and 2019.

	Fair Value of Plan Assets as of December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Fixed income bonds	$	—	$	29,896	$	—	$	29,896
Mutual funds	3,535		—		—		3,535
Pooled separate accounts	—		518		—		518
Guaranteed deposit account	—		—		1,347		1,347
Total plan assets at fair value	$	3,535	$	30,414	$	1,347	$	35,296

	Fair Value of Plan Assets as of December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Fixed income bonds	$	—	$	27,704	$	—	$	27,704
Mutual funds	3,277		—		—		3,277
Pooled separate accounts	—		10,516		—		10,516
Guaranteed deposit account	—		—		1,338		1,338
Total plan assets at fair value	$	3,277	$	38,220	$	1,338	$	42,835

Changes in fair value of Level 3 assets

The following table presents a summary of changes in the fair value of the guaranteed deposit account’s Level 3 assets for the year ended December 31, 2020:

	Guaranteed Deposit Account
Balance as of January 1, 2020	$	1,338
Change in unrealized gain (loss)	34
Purchases, sales, issuances and settlements (net)	(25)
Balance as of December 31, 2020	$	1,347

Schedule of future benefit payments

The following table sets forth the expected benefit payments to be paid for the pension plans and the other postretirement benefit plans:

	Pension Benefits		Other Postretirement Benefits
2021	$	1,808	$	148
2022	$	1,758	$	114
2023	$	1,778	$	130
2024	$	1,770	$	122
2025	$	1,801	$	150
2026-2030	$	8,570	$	763

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table summarizes the change in number of asbestos claims outstanding during 2020 and 2019:

	2020	2019
Claims outstanding as of January 1	592	745
New claims filed	115	251
Pending claims concluded*	(146)	(404)
Claims outstanding as of December 31	561	592

* For the year ended December 31, 2020, 126 claims were dismissed and 20 claims were settled. For the year ended December 31, 2019, 373 claims were dismissed and 31 claims were settled. Settlements totaled approximately $5.4 million for the year ended December 31, 2020, compared to $5.0 million for the year ended December 31, 2019.

Schedule of Loss Contingencies by Contingency

Our projected asbestos-related claims and insurance receivables were as follows:

	As of December 31,
(Dollars in millions)	2020		2019
Asbestos-related liabilities	$	73.2	$	85.9
Asbestos-related insurance receivables	$	66.8	$	78.3

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Consolidated income (loss) from continuing operations before income taxes by location

The “Income before income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	2020		2019		2018
Domestic	$	(4,371)	$	(18,711)	$	14,381
International	72,905		73,837		96,208
Total	$	68,534	$	55,126	$	110,589

Income tax expense (benefit) by location

The “Income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	Current		Deferred		Total
2020
Domestic	$	5,340	$	(11,012)	$	(5,672)
International	26,610		(2,394)		24,216
Total	$	31,950	$	(13,406)	$	18,544
2019
Domestic	$	3,372	$	(16,827)	$	(13,455)
International	21,984		(722)		21,262
Total	$	25,356	$	(17,549)	$	7,807
2018
Domestic	$	(341)	$	(3,007)	$	(3,348)
International	26,604		(318)		26,286
Total	$	26,263	$	(3,325)	$	22,938

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2020 and 2019, were comprised of the following:

(Dollars in thousands)	2020		2019
Deferred tax assets
Accrued employee benefits and compensation	$	6,199	$	5,730
Tax loss and credit carryforwards	17,644		17,761
Reserves and accruals	6,581		5,996
Operating leases	665		904
Capitalized research and development	14,167		11,343
Other	1,824		2,210
Total deferred tax assets	47,080		43,944
Less deferred tax asset valuation allowance	(9,250)		(14,625)
Total deferred tax assets, net of valuation allowance	37,830		29,319
Deferred tax liabilities
Depreciation and amortization	10,282		15,368
Postretirement benefit obligations	2,001		1,719
Unremitted earnings	2,426		1,624
Operating leases	714		908
Other	2,115		1,803
Total deferred tax liabilities	17,538		21,422
Net deferred tax asset (liability)	$	20,292	$	7,897

Effective income tax rate reconciliation

Income tax expense differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows:

(Dollars in thousands)	2020		2019		2018
Tax expense at Federal statutory income tax rate	$	14,392	$	11,576	$	23,224
Impact of foreign operations	1,193		107		826
Foreign source income, net of tax credits	1,050		(2,248)		(197)
State tax, net of federal	(313)		(690)		121
Unrecognized tax benefits	5,800		543		(869)
U.S. Tax Reform	—		—		209
Equity compensation excess tax deductions	(791)		(2,902)		(2,238)
General business credits	(931)		(656)		(2,172)
Distribution related foreign taxes	2,332		1,240		1,916
Executive compensation limitation	900		589		801
Valuation allowance change (excluding U.S. Tax Reform)	(5,375)		(2,527)		602
Disproportionate tax effect of pension settlement charges	—		2,510		—
Other	287		265		715
Income tax expense (benefit)	$	18,544	$	7,807	$	22,938

Reconciliation of unrecognized tax benefits

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2020 and December 31, 2019, were as follows:

(Dollars in thousands)	2020		2019
Beginning balance as of January 1	$	10,217	$	9,801
Gross increases - current period tax positions	5,417		3,139
Gross increases - tax positions in prior periods	46		—
Gross decreases - tax positions in prior periods	—		—
Foreign currency exchange	8		—
Lapse of statute of limitations	—		(2,723)
Ending balance as of December 31	$	15,688	$	10,217

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Operating Segments and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Reportable segment information

The following table presents a disaggregation of revenue from contracts with customers and other pertinent financial information, for the periods indicated; inter-segment sales have been eliminated from the net sales data:

(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2020
Net sales - recognized over time	$	902	$	10,614	$	189,140	$	14,451	$	215,107
Net sales - recognized at a point in time	$	267,797	$	317,563	$	840	$	1,276	$	587,476
Total net sales	$	268,699	$	328,177	$	189,980	$	15,727	$	802,583
Operating income (loss)	$	38,202	$	30,817	$	(6,179)	$	4,494	$	67,334
Total assets	$	407,667	$	504,199	$	338,419	$	13,720	$	1,264,005
Capital expenditures	$	11,849	$	16,214	$	11,840	$	482	$	40,385
Depreciation & amortization	$	13,762	$	47,159	$	9,831	$	673	$	71,425
Investment in unconsolidated joint ventures	$	—	$	15,248	$	—	$	—	15,248
Equity income in unconsolidated joint ventures	$	—	$	4,877	$	—	$	—	$	4,877
December 31, 2019
Net sales - recognized over time	$	—	$	12,687	$	197,702	$	18,112	$	228,501
Net sales - recognized at a point in time	$	316,592	$	348,916	$	833	$	3,418	$	669,759
Total net sales	$	316,592	$	361,603	$	198,535	$	21,530	$	898,260
Operating income (loss)	$	48,654	$	57,080	$	(1,437)	$	6,184	$	110,481
Total assets	$	402,398	$	569,484	$	278,763	$	22,536	$	1,273,181
Capital expenditures	$	22,156	$	8,550	$	20,191	$	700	$	51,597
Depreciation & amortization	$	18,267	$	19,887	$	10,260	$	748	$	49,162
Investment in unconsolidated joint ventures	$	—	$	16,461	$	—	$	—	$	16,461
Equity income in unconsolidated joint ventures	$	—	$	5,319	$	—	$	—	$	5,319
December 31, 2018
Net sales - recognized over time	$	—	$	5,788	$	221,896	$	16,973	$	244,657
Net sales - recognized at a point in time	$	294,154	$	335,576	$	1,442	$	3,262	$	634,434
Total net sales	$	294,154	$	341,364	$	223,338	$	20,235	$	879,091
Operating income	$	33,827	$	52,502	$	19,648	$	6,734	$	112,711
Total assets	$	396,075	$	588,841	$	273,212	$	21,216	$	1,279,344
Capital expenditures	$	61,425	$	10,917	$	18,051	$	156	$	90,549
Depreciation & amortization	$	20,121	$	18,501	$	10,640	$	811	$	50,073
Investment in unconsolidated joint ventures	$	—	$	18,667	$	—	$	—	$	18,667
Equity income in unconsolidated joint ventures	$	—	$	5,501	$	—	$	—	$	5,501

Operating Segment Net Sales by Geographic Area

The following table presents net sales by our operating segment operations by geographic area for the years indicated:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2020
United States	$	66,411	$	128,347	$	24,411	$	3,679	$	222,848
Other Americas	2,639		8,437		304		682		12,062
Total Americas	69,050		136,784		24,715		4,361		234,910
China	115,454		108,161		37,843		2,859		264,317
Other APAC	51,742		43,364		19,088		2,162		116,356
Total APAC	167,196		151,525		56,931		5,021		380,673
Germany	11,452		19,118		59,429		410		90,409
Other EMEA	21,001		20,750		48,905		5,935		96,591
Total EMEA	32,453		39,868		108,334		6,345		187,000
Total net sales	$	268,699	$	328,177	$	189,980	$	15,727	$	802,583
December 31, 2019
United States	$	63,753	$	160,918	$	31,874	$	4,507	$	261,052
Other Americas	3,348		9,208		365		913		13,834
Total Americas	67,101		170,126		32,239		5,420		274,886
China	153,127		95,653		40,391		6,086		295,257
Other APAC	60,457		55,402		23,401		2,920		142,180
Total APAC	213,584		151,055		63,792		9,006		437,437
Germany	15,912		13,702		57,761		573		87,948
Other EMEA	19,995		26,720		44,743		6,531		97,989
Total EMEA	35,907		40,422		102,504		7,104		185,937
Total net sales	$	316,592	$	361,603	$	198,535	$	21,530	$	898,260
December 31, 2018
United States	$	52,661	$	152,284	$	37,325	$	4,527	$	246,797
Other Americas	3,104		14,453		931		773		19,261
Total Americas	55,765		166,737		38,256		5,300		266,058
China	136,315		101,036		39,781		4,959		282,091
Other APAC	63,318		40,788		28,414		2,892		135,412
Total APAC	199,633		141,824		68,195		7,851		417,503
Germany	18,165		9,907		62,359		584		91,015
Other EMEA	20,591		22,896		54,528		6,500		104,515
Total EMEA	38,756		32,803		116,887		7,084		195,530
Total net sales	$	294,154	$	341,364	$	223,338	$	20,235	$	879,091

(1) Net sales are allocated to countries based on the location of the customer. The table above lists individual countries with 10% or more of net sales for the periods indicated.

Our contract assets by operating segment were as follows:

	As of December 31,
(Dollars in thousands)	2020		2019
Advanced Connectivity Solutions	$	750	$	—
Elastomeric Material Solutions	887		1,077
Power Electronics Solutions	23,449		19,471
Other	1,489		1,907
Total contract assets	$	26,575	$	22,455

Schedule of long-lived assets by geographic region

Our long-lived assets(1) by geographic area were as follows:

	As of December 31,
(Dollars in thousands)	2020		2019
United States	$	432,497	$	469,234
China	48,850		55,078
Germany	133,168		120,869
Other	46,061		36,942
Total long-lived assets	$	660,576	$	682,123

(1) Long-lived assets are based on the location of the asset and are comprised of goodwill, other intangible assets and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed.

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Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2020

Supplemental Income Statement Elements [Abstract]

Restructuring and impairment charges

The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Restructuring charges
Manufacturing footprint optimization	$	12,348	$	—	$	—
Facility consolidation	—		948		1,982
Global headquarters relocation	—		—		550
Restructuring charges	12,348		948		2,532
Impairment charges
Fixed assets impairment charges	587		1,537		1,506
Other impairment charges	52		—		—
Impairment charges	639		1,537		1,506
Total restructuring and impairment charges	$	12,987	$	2,485	$	4,038

The following table summarizes the allocation of restructuring and impairment charges to our operating segments:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Advanced Connectivity Solutions
Allocated restructuring charges	$	4,288	$	—	$	244
Allocated impairment charges	335		1,537		1,506
Elastomeric Material Solutions
Allocated restructuring charges	401		948		2,152
Allocated impairment charges	52		—		—
Power Electronics Solutions
Allocated restructuring charges	7,659		—		136
Allocated impairment charges	252		—		—
Total restructuring and impairment charges	$	12,987	$	2,485	$	4,038

Severance and related benefits activity

Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the year ended December 31, 2020:

(Dollars in thousands)	Manufacturing Footprint Optimization Restructuring Severance and Related Benefits
Balance as of December 31, 2019	$	—
Provisions	11,451
Payments	(819)
Foreign currency translation adjustment	371
Balance as of December 31, 2020	$	11,003

Restructuring Charges - Facility Consolidation & Global Headquarters Relocation

Components of other operating (income) expense, net

The components of “Other operating (income) expense, net” were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Lease income	$	—	$	(989)	$	(948)
Depreciation on leased assets	—		1,907		3,512
Loss (gain) on sale or disposal of property, plant and equipment	41		756		(164)
Gain from antitrust litigation settlement	—		—		(4,231)
Indemnity claim settlements from acquisitions	—		(715)		(700)
Economic incentive grants	(145)		—		(556)
Total other operating (income) expense, net	$	(104)	$	959	$	(3,087)

Components of interest expense, net

The components of “Interest expense, net” were as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Interest on revolving credit facility	$	3,294	$	7,378	$	6,304
Interest rate swap settlements	3,191		(200)		(247)
Line of credit fees	715		576		573
Debt issuance amortization costs	593		552		552
Interest on finance leases	134		127		172
Interest income	(939)		(1,610)		(804)
Other	147		46		79
Total interest expense, net	$	7,135	$	6,869	$	6,629

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Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly financial information

	2020
(Dollars in thousands, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	198,810	$	191,157	$	201,944	$	210,672
Gross margin	$	65,630	$	69,969	$	75,518	$	80,703
Net income	$	13,259	$	14,520	$	7,006	$	15,205
Net income per share:
Basic	$	0.71	$	0.78	$	0.37	$	0.82
Diluted	$	0.71	$	0.78	$	0.37	$	0.81

	2019
(Dollars in thousands, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	239,798	$	242,852	$	221,842	$	193,768
Gross margin	$	85,394	$	85,828	$	78,867	$	64,203
Net income (loss)	$	28,399	$	24,293	$	23,387	$	(28,760)
Net income (loss) per share:
Basic	$	1.53	$	1.31	$	1.26	$	(1.55)
Diluted	$	1.52	$	1.30	$	1.25	$	(1.55)

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Share Repurchases (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Schedule of shares of common stock through the repurchase program

We repurchased the following shares of capital stock through the Program, using cash from operations and cash on hand, during the years presented below:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Shares of capital stock repurchased	—		—		23,138
Value of capital stock repurchased	$	—	$	—	$	2,999

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Basis of Presentation, Organization and Summary of Significant Accounting Policies (Organization and Investments in Unconsolidated Joint Ventures) (Details)	12 Months Ended
	Dec. 31, 2020 Segment
Accounting Policies [Abstract]
Number of operating segments	3
Rogers INOAC Corporation (RIC)
Schedule of Equity Method Investments [Line Items]
Joint venture ownership percentage	50.00%
Rogers INOAC Corporation (RIC) | INOAC Corporation
Schedule of Equity Method Investments [Line Items]
Joint venture ownership percentage	50.00%
Rogers INOAC Suzhou Corporation (RIS)
Schedule of Equity Method Investments [Line Items]
Joint venture ownership percentage	50.00%
Rogers INOAC Suzhou Corporation (RIS) | INOAC Corporation
Schedule of Equity Method Investments [Line Items]
Joint venture ownership percentage	50.00%

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Basis of Presentation, Organization and Summary of Significant Accounting Policies (Foreign Currency) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Currency transaction adjustment gain (loss)	$ 0.9	$ (0.9)	$ (0.7)

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Basis of Presentation, Organization and Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Raw materials	$ 44,976	$ 61,338
Work-in-process	25,291	30,043
Finished goods	32,093	41,478
Total inventories	$ 102,360	$ 132,859

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Basis of Presentation, Organization and Summary of Significant Accounting Policies (Property, Plant and Equipment Estimated Useful Lives) (Details)	12 Months Ended
	Dec. 31, 2020
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

XML

Basis of Presentation, Organization and Summary of Significant Accounting Policies (Software Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Net capitalized software and development costs	$ 0.3	$ 0.2
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

XML

Basis of Presentation, Organization and Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) reporting_unit	Dec. 31, 2019 USD ($)
Indefinite-lived Intangible Assets [Line Items]
Number of reporting units | reporting_unit	4
Goodwill	$ 270,172,000	$ 262,930,000
Indefinite-lived other intangible asset impairment charges	0
Indefinite-lived other intangible asset	4,845,000	4,432,000
Definite-lived other intangible assets	$ 113,181,000	$ 154,515,000
EMS
Indefinite-lived Intangible Assets [Line Items]
Sensitivity analysis, Discount rate used	10.50%
Goodwill	$ 143,000,000.0
Definite-lived other intangible assets	$ 101,200,000
ECD
Indefinite-lived Intangible Assets [Line Items]
Sensitivity analysis, Discount rate used	13.10%
Goodwill	$ 2,200,000
Curamik
Indefinite-lived Intangible Assets [Line Items]
Goodwill	73,200,000
Indefinite-lived other intangible asset	4,800,000
Definite-lived other intangible assets	$ 8,200,000
Curamik | Terminal Growth Rates
Indefinite-lived Intangible Assets [Line Items]
Sensitivity analysis, Terminal year growth rate	0.034
ACS
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 51,700,000
Definite-lived other intangible assets	$ 3,700,000
ACS | Terminal Growth Rates
Indefinite-lived Intangible Assets [Line Items]
Sensitivity analysis, Terminal year growth rate	0.042

XML

Basis of Presentation, Organization and Summary of Significant Accounting Policies (Fair Value of Financial Statements) (Details)		12 Months Ended
	Oct. 16, 2020	Dec. 31, 2020
Fourth Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate spread over variable rate	1.00%	1.625%

XML

Basis of Presentation, Organization and Summary of Significant Accounting Policies (Concentration of Credit and Investment Risk) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Significant credit losses, amount	$ 0	$ 0	$ 0

XML

Basis of Presentation, Organization and Summary of Significant Accounting Policies (Income Tax) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Deferred tax liabilities, undistributed foreign earnings	$ 2.4	$ 1.6
Deferred tax liability that may result from distribution of undistributed earnings	$ 3.8

XML

Basis of Presentation, Organization and Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Advertising expense	$ 2.2	$ 3.6	$ 3.8

XML

Fair Value Measurements (Available-for-sale Pension Surplus) (Details) - Fair Value, Recurring $ in Thousands	Dec. 31, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	$ 9,106
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	6,706
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	2,400
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Pension surplus investment	$ 0

XML

Fair Value Measurements (Various Instruments That Require Fair Value Measurement) (Detail) - Fair Value, Recurring - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ (130)	$ (6)
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	(130)	(6)
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	4,785	1,147
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	4,785	1,147
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 contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	(1,254)
Interest rate swap contract | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	0
Interest rate swap contract | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	0	(1,254)
Interest rate swap contract | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ 0	$ 0

XML

Hedging Transactions and Derivative Financial Instruments (Notional Values of Foreign Currency Derivatives) (Detail) - Dec. 31, 2020 - Contracts not designated as hedging instruments - Foreign Exchange Forward	USD ($)	EUR (€)	KRW (₩)
USD/CNH
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | $	$ 28,766,855
EUR/USD
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | €		€ 8,151,124
KRW/USD
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | ₩			₩ 10,893,500,000

XML

Hedging Transactions and Derivative Financial Instruments (Additional Information) (Detail)	Oct. 02, 2020 USD ($)	Dec. 31, 2020 Contract	Mar. 31, 2017 USD ($)	Feb. 17, 2017 USD ($)
Revolving Credit Facility | Third Amended Credit Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Credit agreement, maximum borrowing capacity				$ 450,000,000.0
Interest rate swap contract | Revolving Credit Facility | Third Amended Credit Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, amount of hedged item			$ 75,000,000.0
Settlement of interest rate swap	$ 2,400,000
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		18

XML

Hedging Transactions and Derivative Financial Instruments (Volume of Copper Derivatives) (Details) - Contracts not designated as hedging instruments	Dec. 31, 2020 tons_per_month
January 2021 - March 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Volume of copper derivatives	256
April 2021 - June 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Volume of copper derivatives	256
July 2021 - September 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Volume of copper derivatives	222
October 2021 - December 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Volume of copper derivatives	222

XML

Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Effect of current derivative instruments	$ (3,191)	$ 200	$ 247
Contracts not designated as hedging instruments | Other income (expense), net | Foreign Currency Contracts
Derivative [Line Items]
Effect of current derivative instruments	(1,981)	(779)	(333)
Contracts not designated as hedging instruments | Other income (expense), net | Copper Derivatives Contracts
Derivative [Line Items]
Effect of current derivative instruments	3,610	(716)	(2,101)
Contract designated as hedging instrument | Other comprehensive income (loss) | Interest Rate Swap Contract
Derivative [Line Items]
Effect of current derivative instruments	$ 1,254	$ (1,715)	$ 420

XML

Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Income or Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ 933,900	$ 848,324
Other comprehensive income (loss) before reclassifications	24,658	(12,240)
Amounts reclassified to earnings	2,672	44,169
Net other comprehensive income (loss) for period	27,330	31,929
Ending Balance	1,020,755	933,900
AOCI, Pension and other postretirement benefit plans, tax	1,951	2,368	$ 9,984
AOCI, cumulative changes in net gain (loss) from cash flow hedges, tax	0	282	$ (106)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(46,905)	(78,834)
Ending Balance	(19,575)	(46,905)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(35,478)	(30,488)
Other comprehensive income (loss) before reclassifications	24,907	(4,990)
Amounts reclassified to earnings	0	0
Net other comprehensive income (loss) for period	24,907	(4,990)
Ending Balance	(10,571)	(35,478)
Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(10,455)	(48,700)
Other comprehensive income (loss) before reclassifications	1,255	(6,079)
Amounts reclassified to earnings	196	44,324
Net other comprehensive income (loss) for period	1,451	38,245
Ending Balance	(9,004)	(10,455)
Derivative Instrument Designated as Cash Flow Hedge
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(972)	354
Other comprehensive income (loss) before reclassifications	(1,504)	(1,171)
Amounts reclassified to earnings	2,476	(155)
Net other comprehensive income (loss) for period	972	(1,326)
Ending Balance	$ 0	$ (972)

XML

Accumulated Other Comprehensive Loss (Reclassification) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense), net	$ 3,513	$ (592)	$ (994)
Income tax (expense) benefit	(18,544)	(7,807)	(22,938)
Net income	49,990	47,319	$ 87,651
Amounts reclassified from accumulated other comprehensive income (loss) for the period ended December 31, 2013 | Amortization/settlement of pension and other postretirement benefits
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Pension settlement charges	63	(53,213)
Other income (expense), net	(315)	(504)
Income tax (expense) benefit	56	9,393
Net income	(196)	(44,324)
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	(3,191)	200
Income tax (expense) benefit	715	(45)
Net income	$ (2,476)	$ 155

XML

Property, Plant and Equipment (Schedule of Plant Property and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 562,032	$ 537,785
Accumulated depreciation	(365,844)	(341,119)
Property, plant and equipment, net	196,188	196,666
Equipment in process	76,190	63,580
Total property, plant and equipment, net	272,378	260,246
Land and improvements
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	22,589	21,697
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	155,669	165,968
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	324,773	281,771
Office equipment
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 59,001	$ 68,349

XML

Property, Plant and Equipment (Additional Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation	$ 29.3	$ 31.4	$ 33.5

XML

Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 262,930
Foreign currency translation adjustment	7,242
Ending balance	270,172
Advanced Connectivity Solutions
Goodwill [Roll Forward]
Beginning balance	51,694
Foreign currency translation adjustment	0
Ending balance	51,694
Elastomeric Material Solutions
Goodwill [Roll Forward]
Beginning balance	142,030
Foreign currency translation adjustment	991
Ending balance	143,021
Power Electronics Solutions
Goodwill [Roll Forward]
Beginning balance	66,982
Foreign currency translation adjustment	6,251
Ending balance	73,233
Other
Goodwill [Roll Forward]
Beginning balance	2,224
Foreign currency translation adjustment	0
Ending balance	$ 2,224

XML

Goodwill and Other Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 247,711	$ 243,589
Accumulated Amortization	134,530	89,074
Net Carrying Amount	113,181	154,515
Indefinite-lived other intangible asset	4,845	4,432
Total other intangible assets	252,556	248,021
Total other intangible assets, net carrying amount	118,026	158,947
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	150,863	149,317
Accumulated Amortization	72,014	39,018
Net Carrying Amount	78,849	110,299
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	83,469	80,938
Accumulated Amortization	53,540	45,190
Net Carrying Amount	29,929	35,748
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,039	11,994
Accumulated Amortization	8,149	4,361
Net Carrying Amount	3,890	7,633
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,340	1,340
Accumulated Amortization	827	505
Net Carrying Amount	$ 513	$ 835

XML

Goodwill and Other Intangible Assets (Additional Information) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 42.1	$ 17.8	$ 16.5
Estimated future amortization expense for 2021	12.4
Estimated future amortization expense for 2022	11.9
Estimated future amortization expense for 2023	11.3
Estimated future amortization expense for 2024	10.0
Estimated future amortization expense for 2025	$ 8.5

XML

Goodwill and Other Intangible Assets (Weighted Average Amortization Period by Intangible Asset Class) (Detail)	12 Months Ended
	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	5 years 5 months 12 days
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	6 years 1 month 6 days
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	3 years 10 months 24 days
Trademarks and trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	4 years 10 months 6 days
Covenants not to compete
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	1 year 3 months 7 days

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net income	$ 49,990	$ 47,319	$ 87,651
Denominator:
Weighted average shares outstanding - basic (in shares)	18,681,000	18,573,000	18,374,000
Effect of dilutive shares (in shares)	25,000	140,000	285,000
Weighted average shares outstanding - diluted (in shares)	18,706,000	18,713,000	18,659,000
Basic earnings per share (in dollars per share)	$ 2.68	$ 2.55	$ 4.77
Diluted earnings per share (in dollars per share)	$ 2.67	$ 2.53	$ 4.70
Antidilutive securities excluded from computation of earnings per share (in shares)	8,454	20,520	36,642

XML

Capital Stock and Equity Compensation (Shares of Capital Stock Reserved) (Details) - shares	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance (in shares)	1,334,462	1,478,842
Shares reserved for issuance under outstanding restricted stock unit awards (in shares)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance (in shares)	324,260	315,571
Deferred compensation to be paid in stock, including deferred stock units (in shares)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance (in shares)	12,715	7,681
Additional shares reserved for issuance under Rogers Corporation 2009 Long-Term Equity Compensation Plan (in shares)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance (in shares)	918,809	1,063,920
Shares reserved for issuance under the Rogers Corporation Global Stock Ownership Plan for Employees (in shares)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance (in shares)	78,678	91,670

XML

Capital Stock and Equity Compensation (Additional Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, measurement period (years)	3 years
Expected dividend yield (percentage)	0.00%
Compensation expense	$ 5.8	$ 5.0	$ 4.4
Nonvested awards, total compensation cost not yet recognized	$ 7.6
Weighted-average remaining contractual life in years, options outstanding	9 months 18 days
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, awarded shares as a percentage of the original award amount (percent)	0.00%
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, awarded shares as a percentage of the original award amount (percent)	200.00%
Time Based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 6.0	5.8	5.6
Nonvested awards, total compensation cost not yet recognized	$ 7.5
Weighted-average remaining contractual life in years, options outstanding	10 months 24 days
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 1.1	$ 1.1	$ 0.9
Anniversary period from grant date	13 months
Conversion ratio	1

XML

Capital Stock and Equity Compensation (Monte Carlo Assumptions Used) (Details) - Performance Shares	Feb. 12, 2020	Jun. 03, 2019	Feb. 07, 2019	Sep. 17, 2018	Feb. 08, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	41.00%	39.70%	36.70%	36.60%	34.80%
Expected term (in years)	2 years 10 months 24 days	2 years 7 months 6 days	2 years 10 months 24 days	3 years	3 years
Risk-free interest rate	1.41%	1.78%	2.43%	2.85%	2.28%

XML

Capital Stock and Equity Compensation (Performance Based Restricted Stock Awards) (Detail) - Performance Shares - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Awards Outstanding
Awards outstanding, beginning balance (in shares)	106,943	142,434	169,202
Awards granted (in shares)	87,244	112,160	75,760
Stock issued (in shares)	(75,486)	(135,032)	(81,230)
Awards forfeited (in shares)	(7,642)	(12,619)	(21,298)
Awards outstanding, ending balance (in shares)	111,059	106,943	142,434
Weighted- Average Grant Date Fair Value
Awards outstanding, beginning balance (in dollars per share)	$ 161.33	$ 110.19	$ 97.16
Awards granted (in dollars per share)	131.99	114.22	163.55
Stock issued (in dollars per share)	111.54	69.10	131.72
Awards forfeited (in dollars per share)	179.89	152.22	114.40
Awards outstanding, ending balance (in dollars per share)	$ 170.84	$ 161.33	$ 110.19

XML

Capital Stock and Equity Compensation (Time Based Restricted Stock Awards) (Detail) - Time Based Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Awards Outstanding
Awards outstanding, beginning balance (in shares)	101,685	117,476	173,331
Awards granted (in shares)	58,807	62,115	46,810
Stock issued (in shares)	(50,868)	(68,111)	(82,921)
Awards forfeited (in shares)	(7,482)	(9,795)	(19,744)
Awards outstanding, ending balance (in shares)	102,142	101,685	117,476
Weighted- Average Grant Date Fair Value
Awards outstanding, beginning balance (in dollars per share)	$ 122.68	$ 116.10	$ 69.10
Awards granted (in dollars per share)	116.87	126.92	143.93
Stock issued (in dollars per share)	111.16	81.53	84.92
Awards forfeited (in dollars per share)	122.87	116.52	112.06
Awards outstanding, ending balance (in dollars per share)	$ 120.16	$ 122.68	$ 116.10

XML

Capital Stock and Equity Compensation (Deferred Stock Units) (Detail) - Deferred Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Awards Outstanding
Awards outstanding, beginning balance (in shares)	7,150	8,400	9,250
Awards granted (in shares)	10,400	5,950	8,400
Stock issued (in shares)	(5,100)	(7,200)	(9,250)
Awards outstanding, ending balance (in shares)	12,450	7,150	8,400
Weighted- Average Grant Date Fair Value
Awards outstanding, beginning balance (in dollars per share)	$ 170.89	$ 108.86	$ 109.48
Awards granted (in dollars per share)	108.88	183.40	108.86
Stock issued (in dollars per share)	183.40	108.86	109.48
Awards outstanding, ending balance (in dollars per share)	$ 113.96	$ 170.89	$ 108.86

XML

Debt (Additional Information) (Details)				3 Months Ended	9 Months Ended	12 Months Ended
	Oct. 16, 2020 USD ($)	Oct. 02, 2020 USD ($)	Feb. 17, 2017 USD ($) fiscal_quarter	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)
Debt Instrument [Line Items]
Borrowings under revolving credit facility					$ 25,000,000	$ 25,000,000	$ 123,000,000
Interest expense on debt						6,500,000	7,200,000	$ 6,100,000
Line of credit fees						715,000	576,000	573,000
Debt issuance amortization costs						593,000	552,000	552,000
Revolving Credit Facility | Third Amended Credit Agreement
Debt Instrument [Line Items]
Debt instrument, term			5 years
Credit agreement, maximum borrowing capacity			$ 450,000,000.0
Line of credit facility, additional borrowing capacity			$ 175,000,000.0
Debt instrument, lower range basis spread on variable rate			0.375%
Debt instrument, higher range basis spread on variable rate			0.75%
Leverage ratio, maximum			3.25
Maximum leverage ratio option			3.50
One-time leverage ratio maximum option, number of fiscal quarters for period of increased maximum leverage ratio | fiscal_quarter			3
Interest coverage ratio, minimum			3.00
Leverage ratio, cash dividends, maximum			2.75
Borrowings				$ 150,000,000.0	0
Repayments of lines of credit						248,000,000.0	105,500,000	5,000,000.0
Borrowings under revolving credit facility					$ 25,000,000.0	$ 25,000,000.0
Revolving Credit Facility | Third Amended Credit Agreement | Interest rate swap contract
Debt Instrument [Line Items]
Derivative, amount of hedged item									$ 75,000,000.0
Settlement of interest rate swap		$ 2,400,000
Revolving Credit Facility | Third Amended Credit Agreement | Minimum
Debt Instrument [Line Items]
Unused commitment fee, percentage			0.20%
Revolving Credit Facility | Third Amended Credit Agreement | Maximum
Debt Instrument [Line Items]
Unused commitment fee, percentage			0.30%
Allowed dividend payments			$ 20,000,000.0
Revolving Credit Facility | Third Amended Credit Agreement | Eurocurrency loans
Debt Instrument [Line Items]
LIBOR spread minimum			1.375%
LIBOR spread maximum			1.75%
Revolving Credit Facility | Third Amended Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Interest rate spread over variable rate			0.50%
Revolving Credit Facility | Third Amended Credit Agreement | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate spread over variable rate			1.00%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Credit agreement, maximum borrowing capacity	$ 450,000,000.0
Line of credit facility, additional borrowing capacity	$ 175,000,000.0
Debt instrument, lower range basis spread on variable rate	0.625%
Debt instrument, higher range basis spread on variable rate	1.00%
Leverage ratio, maximum	3.25
Maximum leverage ratio option	3.50
Interest coverage ratio, minimum	3.00
Leverage ratio, cash dividends, maximum	2.75				2.75	2.75
One-time leverage ratio maximum option, period of increased maximum leverage ratio	1 year
Amount of unrestricted domestic cash and cash equivalents permitted to net against indebtedness in calculation of total net leverage ratio (up to)	50,000,000.0
Long-term line of credit					$ 2,300,000	$ 2,300,000	1,200,000
Debt issuance amortization costs						$ 600,000	$ 600,000	$ 600,000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Minimum
Debt Instrument [Line Items]
Unused commitment fee, percentage	0.25%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Maximum
Debt Instrument [Line Items]
Unused commitment fee, percentage	0.35%
Allowed dividend payments	$ 20,000,000.0
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Eurocurrency loans
Debt Instrument [Line Items]
LIBOR spread minimum	1.625%
LIBOR spread maximum	2.00%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Interest rate spread over variable rate	0.50%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate spread over variable rate	1.00%					1.625%

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Leases (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Finance lease obligation	$ 5,077	$ 4,540
Finance lease right-of-use assets	7,017	6,280
Germany
Lessee, Lease, Description [Line Items]
Finance lease obligation	4,500	4,500
Finance lease right-of-use assets	6,500	6,300
Finance lease, right-of-use asset, amortization	$ 4,500	$ 3,800

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Leases (Lease Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Operating leases expense	$ 3,257	$ 3,119	$ 3,850
Short-term leases expense	464	192	112
Payments on operating lease obligations	$ 2,893	$ 2,967	$ 3,850

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Leases (Assets and Liabilities Balance Related to Finance and Operating Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Finance lease right-of-use assets	$ 7,017	$ 6,280
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Operating lease right-of-use assets	$ 4,216	$ 4,656
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Finance lease obligations, current portion	$ 4,755	$ 400
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Finance lease obligations, non-current portion	$ 322	$ 4,140
Total finance lease obligations	$ 5,077	$ 4,540
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Operating lease obligations, current portion	$ 2,275	$ 2,343
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Operating lease obligations, non-current portion	$ 2,219	$ 2,334
Total operating lease obligations	$ 4,494	$ 4,677

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Leases (Lease Payments) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finance Leases in Effect
2021	$ 4,787
2022	194
2023	187
2024	0
Thereafter	0
Total lease payments	5,168
Less: Interest	(91)
Present Value of Net Future Minimum Lease Payments	5,077	$ 4,540
Operating Leases Signed
2021	2,435
2022	1,513
2023	788
2024	299
Thereafter	42
Total lease payments	5,077
Less: Interest	(259)
Present Value of Net Future Minimum Lease Payments	4,818
Less: Operating Leases Not Yet Commenced
2021	(93)
2022	(101)
2023	(65)
2024	(40)
Thereafter	(37)
Total lease payments	(336)
Less: Interest	12
Present Value of Net Future Minimum Lease Payments	(324)
Operating Leases in Effect
2021	2,342
2022	1,412
2023	723
2024	259
Thereafter	5
Total lease payments	4,741
Less: Interest	(247)
Total operating lease obligations	$ 4,494	$ 4,677

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Leases (Lease Term and Discount Rate) (Details)	Dec. 31, 2020
Leases [Abstract]
Finance leases, weighted average remaining lease term	9 months 18 days
Finance leases, weighted average discount rate (percentage)	3.07%
Operating leases, weighted average remaining lease term	2 years 6 months
Operating leases, weighted average discount rate (percentage)	4.57%

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Additional Information) (Detail)	2 Months Ended		3 Months Ended		7 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 01, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) plan	Dec. 31, 2018 USD ($)	Jul. 27, 2020 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of qualified noncontributory defined benefit plans | plan							2
Merged plan assets	$ 12,790,000	$ 12,790,000	$ 12,790,000			$ 5,278,000	$ 12,790,000
PBO of plan assets for pension plan with plan assets in excess of its PBO	30,000,000.0	30,000,000.0	30,000,000.0			30,000,000.0	30,000,000.0
ABO of plan assets for pension plan with plan assets in excess of its PBO	30,000,000.0	30,000,000.0	30,000,000.0			30,000,000.0	30,000,000.0
Fair value of the plan assets for pension plan with plan assets in excess of its PBO	42,800,000	42,800,000	42,800,000			35,300,000	42,800,000
PBO of plan assets for pension plan with plan assets in excess of its ABO	30,000,000.0	30,000,000.0	30,000,000.0			30,000,000.0	30,000,000.0
ABO of plan assets for pension plan with plan assets in excess of its ABO	30,000,000.0	30,000,000.0	30,000,000.0			30,000,000.0	30,000,000.0
Fair value of the plan assets for pension plan with plan assets in excess of its ABO	$ 42,800,000	$ 42,800,000	$ 42,800,000			$ 35,300,000	$ 42,800,000
Health care cost, employees age						65 years	65 years
Health care cost trend rate annual change (as a percentage)						0.25%
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 (as a percentage)	6.75%	6.75%	6.75%			6.50%	6.75%
Ultimate health care cost trend rate (as a percentage)						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 (as a percentage)	6.75%	6.75%	6.75%			6.50%	6.75%
Ultimate health care cost trend rate (as a percentage)						4.50%
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annuity payments						$ (237,000)	$ 162,484,000
Merged plan assets	$ 12,790,000	$ 12,790,000	$ 12,790,000			5,278,000	12,790,000
Plan assets	$ 42,835,000	$ 42,835,000	$ 42,835,000			$ 35,296,000	42,835,000	$ 191,652,000
Expected long-term rate of return on plan assets (as a percentage)						4.53%
Employer contributions						$ 0	$ 41,000
Pension Benefits | Fixed Income
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan asset allocations (as a percentage)	92.00%	92.00%	92.00%			90.00%	92.00%
Pension Benefits | Equity Securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan asset allocations (as a percentage)	8.00%	8.00%	8.00%			10.00%	8.00%
Other Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annuity payments						$ 0	$ 0
Merged plan assets	$ 0	$ 0	$ 0			0	0
Plan assets	0	0	0			0	0	0
PBO of plan assets for other postretirement benefit plans with ABO in excess of plan assets	1,600,000	1,600,000	1,600,000			1,500,000	1,600,000
ABO of plan assets for other postretirement benefit plans with ABO in excess of plan assets	(1,600,000)	(1,600,000)	(1,600,000)			(1,500,000)	(1,600,000)
Employer contributions						192,000	273,000
Merged Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions							25,000,000.0
Merged Plan | Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annuity payments	$ 1,300,000				$ 123,300,000
Lump sum distributions		$ 38,900,000
Non-cash pre-tax settlement charge in connection with termination of Merged Plan			$ 53,200,000	$ 0
Merged plan assets						9,100,000
Rogers Employee Savings and Investment Plan (RESIP)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions						4,900,000	$ 4,400,000	$ 5,600,000
IRS deferral limit						$ 19,000
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 (as a percentage)						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 (as a percentage)						100.00%
Employer matching contribution (as a percentage)						1.00%
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 (as a percentage)						5.00%
Employer matching contribution (as a percentage)						50.00%
Rogers Employee Savings and Investment Plan (RESIP) | Suspense Account Held Within a Trust
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan assets									$ 7,400,000

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Obligations and Funded Status) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Change in plan benefit obligations:
Benefit obligation as of January 1	$ 30,300,000	$ 172,608,000
Service cost		0	$ 0
Interest cost	908,000	5,641,000	6,758,000
Actuarial (gain) loss	491,000	23,797,000
Benefit payments	(1,647,000)	(9,262,000)
Pension settlements	237,000	(162,484,000)
Benefit obligation as of December 31	30,289,000	30,300,000	172,608,000
Change in plan assets:
Fair value of plan assets as of January 1	42,835,000	191,652,000
Actual return on plan assets	3,615,000	22,888,000
Employer contributions	0	41,000
Benefit payments	(1,647,000)	(9,262,000)
Transfer related to plan termination	(9,744,000)	0
Pension settlements	237,000	(162,484,000)
Fair value of plan assets as of December 31	35,296,000	42,835,000	191,652,000
Amount overfunded (underfunded)	5,007,000	12,535,000
Other Postretirement Benefits
Change in plan benefit obligations:
Benefit obligation as of January 1	1,599,000	1,803,000
Service cost	56,000	61,000	73,000
Interest cost	40,000	59,000	62,000
Actuarial (gain) loss	0	(51,000)
Benefit payments	(192,000)	(273,000)
Pension settlements	0	0
Benefit obligation as of December 31	1,503,000	1,599,000	1,803,000
Change in plan assets:
Fair value of plan assets as of January 1	0	0
Actual return on plan assets	0	0
Employer contributions	192,000	273,000
Benefit payments	(192,000)	(273,000)
Transfer related to plan termination	0	0
Pension settlements	0	0
Fair value of plan assets as of December 31	0	0	$ 0
Amount overfunded (underfunded)	$ (1,503,000)	$ (1,599,000)

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets & Liabilities:
Non-current assets	$ 5,278	$ 12,790
Pension Benefits
Assets & Liabilities:
Non-current assets	5,278	12,790
Current liabilities	(14)	(5)
Non-current liabilities	(257)	(250)
Net assets (liabilities)	5,007	12,535
Accumulated Other Comprehensive Loss:
Net actuarial (loss) gain	(11,171)	(13,085)
Prior service benefit	0	0
Accumulated other comprehensive (loss) income	(11,171)	(13,085)
Other Postretirement Benefits
Assets & Liabilities:
Non-current assets	0	0
Current liabilities	(148)	(282)
Non-current liabilities	(1,355)	(1,317)
Net assets (liabilities)	(1,503)	(1,599)
Accumulated Other Comprehensive Loss:
Net actuarial (loss) gain	119	54
Prior service benefit	97	209
Accumulated other comprehensive (loss) income	$ 216	$ 263

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost		$ 0	$ 0
Interest cost	908	5,641	6,758
Expected return of plan assets	(1,574)	(6,932)	(8,662)
Amortization of prior service credit	0	0	0
Amortization of net loss (gain)	427	1,514	1,828
Settlement charge	(63)	53,213	0
Net periodic benefit cost (credit)	(302)	53,436	(76)
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	56	61	73
Interest cost	40	59	62
Expected return of plan assets	0	0	0
Amortization of prior service credit	(112)	(1,011)	(1,602)
Amortization of net loss (gain)	0	0	0
Settlement charge	0	0	0
Net periodic benefit cost (credit)	$ (16)	$ (891)	$ (1,467)

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Assumptions Used) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Pension Benefits
Weighted average assumptions used in benefit obligations:
Discount rate	2.50%	3.25%
Weighted average assumptions used in net periodic benefit costs:
Discount rate	3.25%	4.25%
Expected long-term rate of return on assets	4.53%	4.69%
Other Postretirement Benefits
Weighted average assumptions used in benefit obligations:
Discount rate	1.75%	2.75%
Weighted average assumptions used in net periodic benefit costs:
Discount rate	2.75%	3.75%
Expected long-term rate of return on assets	0.00%	0.00%

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Assets Carried at Fair Value by Level) (Details) - Pension Benefits - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Pension assets	$ 35,296	$ 42,835	$ 191,652
Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension assets	3,535	3,277
Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension assets	30,414	38,220
Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension assets	1,347	1,338
Fixed income bonds
Defined Benefit Plan Disclosure [Line Items]
Pension assets	29,896	27,704
Fixed income bonds | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Fixed income bonds | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension assets	29,896	27,704
Fixed income bonds | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension assets	3,535	3,277
Mutual funds | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension assets	3,535	3,277
Mutual funds | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Mutual funds | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Pooled separate accounts
Defined Benefit Plan Disclosure [Line Items]
Pension assets	518	10,516
Pooled separate accounts | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Pooled separate accounts | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension assets	518	10,516
Pooled separate accounts | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Guaranteed deposit account
Defined Benefit Plan Disclosure [Line Items]
Pension assets	1,347	1,338
Guaranteed deposit account | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Guaranteed deposit account | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension assets	0	0
Guaranteed deposit account | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension assets	$ 1,347	$ 1,338

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Summary of Changes in Fair Value of Guaranteed Deposit Account's Level 3 Assets) (Details) - Pension Benefits $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets as of January 1	$ 42,835
Fair value of plan assets as of December 31	35,296
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets as of January 1	1,338
Fair value of plan assets as of December 31	1,347
Guaranteed deposit account
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets as of January 1	1,338
Fair value of plan assets as of December 31	1,347
Guaranteed deposit account | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets as of January 1	1,338
Change in unrealized gain (loss)	34
Purchases, sales, issuances and settlements (net)	(25)
Fair value of plan assets as of December 31	$ 1,347

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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans (Estimated Future Payments) (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2021	$ 1,808
2022	1,758
2023	1,778
2024	1,770
2025	1,801
2026-2030	8,570
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
2021	148
2022	114
2023	130
2024	122
2025	150
2026-2030	$ 763

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Commitments and Contingencies (Additional Information) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Legal fees	$ 0.4	$ 0.7
Environmental remediation (income) expense	(0.7)	$ 1.7	$ 0.7
Connecticut Voluntary Corrective Action Program
Loss Contingencies [Line Items]
Environmental remediation expense	1.7
Estimated total cleanup costs, accrual	$ 0.9

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Commitments and Contingencies (Claims for Asbestos) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) claim	Dec. 31, 2019 USD ($) claim
Liability for Asbestos and Environmental Claims [Roll Forward]
Claims outstanding as of January 1	592	745
New claims filed	115	251
Pending claims concluded	(146)	(404)
Claims outstanding as of December 31	561	592
Number of claims dismissed	126	373
Number of claims settled	20	31
Claims settlements amount | $	$ 5.4	$ 5.0

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Commitments and Contingencies (Schedule to Total Estimated of Liability for Asbestos) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Asbestos-related liabilities	$ 73.2	$ 85.9
Asbestos-related insurance receivables	$ 66.8	$ 78.3

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Income Taxes (Consolidated Income (Loss) from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Domestic	$ (4,371)	$ (18,711)	$ 14,381
International	72,905	73,837	96,208
Total	$ 68,534	$ 55,126	$ 110,589

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Income Taxes (Income Tax Expense (Benefit) in the Consolidated Statements of Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current
Domestic	$ 5,340	$ 3,372	$ (341)
International	26,610	21,984	26,604
Total	31,950	25,356	26,263
Deferred
Domestic	(11,012)	(16,827)	(3,007)
International	(2,394)	(722)	(318)
Total	(13,406)	(17,549)	(3,325)
Total
Domestic	(5,672)	(13,455)	(3,348)
International	24,216	21,262	26,286
Total	$ 18,544	$ 7,807	$ 22,938

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Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Accrued employee benefits and compensation	$ 6,199	$ 5,730
Tax loss and credit carryforwards	17,644	17,761
Reserves and accruals	6,581	5,996
Operating leases	665	904
Capitalized research and development	14,167	11,343
Other	1,824	2,210
Total deferred tax assets	47,080	43,944
Less deferred tax asset valuation allowance	(9,250)	(14,625)	$ (16,889)	$ (8,754)
Total deferred tax assets, net of valuation allowance	37,830	29,319
Deferred tax liabilities
Depreciation and amortization	10,282	15,368
Postretirement benefit obligations	2,001	1,719
Unremitted earnings	2,426	1,624
Operating leases	714	908
Other	2,115	1,803
Total deferred tax liabilities	17,538	21,422
Net deferred tax asset (liability)	$ 20,292	$ 7,897

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Income Taxes (Additional Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Examination [Line Items]
Federal tax credit carryforwards, research	$ 5,800
Foreign tax credits	2,200
Deferred tax asset valuation allowance	9,250	$ 14,625	$ 16,889	$ 8,754
Decrease in valuation allowance	$ 39	$ (656)	$ (8,135)
Effective income tax rate	27.10%	14.20%
Deferred tax liabilities, undistributed foreign earnings	$ 2,400	$ 1,600
Deferred tax liability that may result from distribution of undistributed earnings	3,800
Unrecognized tax benefits that would impact effective tax rate	15,300
Unrecognized tax benefits that would result in adjustments to other tax accounts	400
Unrecognized tax benefits, income tax penalties and interest accrued	1,200	700
Unrecognized tax benefits, income tax penalties and interest expense (benefit)	500	200
Federal Research and Development Credit Carryforwards, Released
Income Tax Examination [Line Items]
Decrease in valuation allowance	5,300
State and Local Jurisdiction
Income Tax Examination [Line Items]
Deferred tax asset valuation allowance	8,000
Arizona
Income Tax Examination [Line Items]
State operating loss carryforwards	8,400
China
Income Tax Examination [Line Items]
Deferred tax liabilities, undistributed foreign earnings	2,400	$ 1,600
Minimum
Income Tax Examination [Line Items]
State operating loss carryforwards	200
Maximum
Income Tax Examination [Line Items]
State operating loss carryforwards	$ 4,700

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Income Taxes (Income Tax Expense Difference) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Tax expense at Federal statutory income tax rate	$ 14,392	$ 11,576	$ 23,224
Impact of foreign operations	1,193	107	826
Foreign source income, net of tax credits	1,050	(2,248)	(197)
State tax, net of federal	(313)	(690)	121
Unrecognized tax benefits	5,800	543	(869)
U.S. Tax Reform	0	0	209
Equity compensation excess tax deductions	(791)	(2,902)	(2,238)
General business credits	(931)	(656)	(2,172)
Distribution related foreign taxes	2,332	1,240	1,916
Executive compensation limitation	900	589	801
Valuation allowance change (excluding U.S. Tax Reform)	(5,375)	(2,527)	602
Disproportionate tax effect of pension settlement charges	0	2,510	0
Other	287	265	715
Total	$ 18,544	$ 7,807	$ 22,938

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Income Taxes (Reconciliation of Unrecognized Tax Benefits, Excluding Potential Interest and Penalties) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance as of January 1	$ 10,217	$ 9,801
Gross increases - current period tax positions	5,417	3,139
Gross increases - tax positions in prior periods	46	0
Gross decreases - tax positions in prior periods	0	0
Foreign currency exchange	8	0
Lapse of statute of limitations	0	(2,723)
Ending balance as of December 31	$ 15,688	$ 10,217

XML

Operating Segments and Geographic Information (Information About Reportable Segments) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net sales	$ 210,672	$ 201,944	$ 191,157	$ 198,810	$ 193,768	$ 221,842	$ 242,852	$ 239,798	$ 802,583	$ 898,260	$ 879,091
Operating income (loss)									67,334	110,481	112,711
Total assets	1,264,005				1,273,181				1,264,005	1,273,181	1,279,344
Capital expenditures									40,385	51,597	90,549
Depreciation & amortization									71,425	49,162	50,073
Investment in unconsolidated joint ventures	15,248				16,461				15,248	16,461	18,667
Equity income in unconsolidated joint ventures									4,877	5,319	5,501
Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Net sales									268,699	316,592	294,154
Operating income (loss)									38,202	48,654	33,827
Total assets	407,667				402,398				407,667	402,398	396,075
Capital expenditures									11,849	22,156	61,425
Depreciation & amortization									13,762	18,267	20,121
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									328,177	361,603	341,364
Operating income (loss)									30,817	57,080	52,502
Total assets	504,199				569,484				504,199	569,484	588,841
Capital expenditures									16,214	8,550	10,917
Depreciation & amortization									47,159	19,887	18,501
Investment in unconsolidated joint ventures	15,248				16,461				15,248	16,461	18,667
Equity income in unconsolidated joint ventures									4,877	5,319	5,501
Power Electronics Solutions
Segment Reporting Information [Line Items]
Net sales									189,980	198,535	223,338
Operating income (loss)									(6,179)	(1,437)	19,648
Total assets	338,419				278,763				338,419	278,763	273,212
Capital expenditures									11,840	20,191	18,051
Depreciation & amortization									9,831	10,260	10,640
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									15,727	21,530	20,235
Operating income (loss)									4,494	6,184	6,734
Total assets	13,720				22,536				13,720	22,536	21,216
Capital expenditures									482	700	156
Depreciation & amortization									673	748	811
Investment in unconsolidated joint ventures	$ 0				$ 0				0	0	0
Equity income in unconsolidated joint ventures									0	0	0
Recognized over time
Segment Reporting Information [Line Items]
Net sales									215,107	228,501	244,657
Recognized over time | Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Net sales									902	0	0
Recognized over time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales									10,614	12,687	5,788
Recognized over time | Power Electronics Solutions
Segment Reporting Information [Line Items]
Net sales									189,140	197,702	221,896
Recognized over time | Other
Segment Reporting Information [Line Items]
Net sales									14,451	18,112	16,973
Recognized at a point in time
Segment Reporting Information [Line Items]
Net sales									587,476	669,759	634,434
Recognized at a point in time | Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Net sales									267,797	316,592	294,154
Recognized at a point in time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales									317,563	348,916	335,576
Recognized at a point in time | Power Electronics Solutions
Segment Reporting Information [Line Items]
Net sales									840	833	1,442
Recognized at a point in time | Other
Segment Reporting Information [Line Items]
Net sales									$ 1,276	$ 3,418	$ 3,262

XML

Operating Segments and Geographic Information (Revenue by Country) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 210,672	$ 201,944	$ 191,157	$ 198,810	$ 193,768	$ 221,842	$ 242,852	$ 239,798	$ 802,583	$ 898,260	$ 879,091
Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									268,699	316,592	294,154
Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									328,177	361,603	341,364
Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									189,980	198,535	223,338
Other
Disaggregation of Revenue [Line Items]
Net sales									15,727	21,530	20,235
Total Americas
Disaggregation of Revenue [Line Items]
Net sales									234,910	274,886	266,058
Total Americas | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									69,050	67,101	55,765
Total Americas | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									136,784	170,126	166,737
Total Americas | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									24,715	32,239	38,256
Total Americas | Other
Disaggregation of Revenue [Line Items]
Net sales									4,361	5,420	5,300
United States
Disaggregation of Revenue [Line Items]
Net sales									222,848	261,052	246,797
United States | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									66,411	63,753	52,661
United States | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									128,347	160,918	152,284
United States | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									24,411	31,874	37,325
United States | Other
Disaggregation of Revenue [Line Items]
Net sales									3,679	4,507	4,527
Other Americas
Disaggregation of Revenue [Line Items]
Net sales									12,062	13,834	19,261
Other Americas | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									2,639	3,348	3,104
Other Americas | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									8,437	9,208	14,453
Other Americas | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									304	365	931
Other Americas | Other
Disaggregation of Revenue [Line Items]
Net sales									682	913	773
Total APAC
Disaggregation of Revenue [Line Items]
Net sales									380,673	437,437	417,503
Total APAC | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									167,196	213,584	199,633
Total APAC | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									151,525	151,055	141,824
Total APAC | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									56,931	63,792	68,195
Total APAC | Other
Disaggregation of Revenue [Line Items]
Net sales									5,021	9,006	7,851
China
Disaggregation of Revenue [Line Items]
Net sales									264,317	295,257	282,091
China | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									115,454	153,127	136,315
China | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									108,161	95,653	101,036
China | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									37,843	40,391	39,781
China | Other
Disaggregation of Revenue [Line Items]
Net sales									2,859	6,086	4,959
Other APAC
Disaggregation of Revenue [Line Items]
Net sales									116,356	142,180	135,412
Other APAC | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									51,742	60,457	63,318
Other APAC | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									43,364	55,402	40,788
Other APAC | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									19,088	23,401	28,414
Other APAC | Other
Disaggregation of Revenue [Line Items]
Net sales									2,162	2,920	2,892
Total EMEA
Disaggregation of Revenue [Line Items]
Net sales									187,000	185,937	195,530
Total EMEA | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									32,453	35,907	38,756
Total EMEA | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									39,868	40,422	32,803
Total EMEA | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									108,334	102,504	116,887
Total EMEA | Other
Disaggregation of Revenue [Line Items]
Net sales									6,345	7,104	7,084
Germany
Disaggregation of Revenue [Line Items]
Net sales									90,409	87,948	91,015
Germany | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									11,452	15,912	18,165
Germany | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									19,118	13,702	9,907
Germany | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									59,429	57,761	62,359
Germany | Other
Disaggregation of Revenue [Line Items]
Net sales									410	573	584
Other EMEA
Disaggregation of Revenue [Line Items]
Net sales									96,591	97,989	104,515
Other EMEA | Advanced Connectivity Solutions
Disaggregation of Revenue [Line Items]
Net sales									21,001	19,995	20,591
Other EMEA | Elastomeric Material Solutions
Disaggregation of Revenue [Line Items]
Net sales									20,750	26,720	22,896
Other EMEA | Power Electronics Solutions
Disaggregation of Revenue [Line Items]
Net sales									48,905	44,743	54,528
Other EMEA | Other
Disaggregation of Revenue [Line Items]
Net sales									$ 5,935	$ 6,531	$ 6,500

XML

Operating Segments and Geographic Information (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Cumulative effect adjustment	$ 1,020,755	$ 933,900	$ 848,324
Retained Earnings
Segment Reporting Information [Line Items]
Cumulative effect adjustment	$ 873,692	$ 823,702	$ 776,403		$ 684,540
Cumulative-effect adjustment | Retained Earnings
Segment Reporting Information [Line Items]
Cumulative effect adjustment				$ 4,200

XML

Operating Segments and Geographic Information (Contract Assets by Segment) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Contract assets	$ 26,575	$ 22,455
Advanced Connectivity Solutions
Segment Reporting Information [Line Items]
Contract assets	750	0
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Contract assets	887	1,077
Power Electronics Solutions
Segment Reporting Information [Line Items]
Contract assets	23,449	19,471
Other
Segment Reporting Information [Line Items]
Contract assets	$ 1,489	$ 1,907

XML

Operating Segments and Geographic Information (Operations by Geographic Area) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 660,576	$ 682,123
United States
Segment Reporting Information [Line Items]
Long-Lived Assets	432,497	469,234
China
Segment Reporting Information [Line Items]
Long-Lived Assets	48,850	55,078
Germany
Segment Reporting Information [Line Items]
Long-Lived Assets	133,168	120,869
Other
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 46,061	$ 36,942

XML

Supplemental Financial Information (Restructuring and Impairment Charges) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 12,348	$ 948	$ 2,532
Impairment charges
Fixed assets impairment charges	587		1,506
Other impairment charges	52	0	0
Impairment charges	639	1,537	1,506
Total restructuring and impairment charges	12,987	2,485	4,038
Advanced Connectivity Solutions
Impairment charges
Fixed assets impairment charges		1,537
Impairment charges	600	1,500	1,500
Manufacturing footprint optimization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	12,348	0	0
Facility consolidation
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	948	1,982
Global headquarters relocation
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0	$ 550

XML

Supplemental Financial Information (Severance and Related Benefits Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Reserve [Roll Forward]
Provisions	$ 12,348	$ 948	$ 2,532
Severance and Related Benefits
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2019	0
Provisions	11,451
Payments	(819)
Foreign currency translation adjustment	371
Balance as of December 31, 2020	$ 11,003	$ 0

XML

Supplemental Financial Information (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Restructuring charges	$ 12,348	$ 948	$ 2,532
Impairment charges	639	1,537	1,506
Lease income	0	989	948
Depreciation on leased assets	0	1,907	3,512
Indemnity claim settlements from acquisitions	0	715	700
Gain from antitrust litigation settlement	0	0	4,231
Economic incentive grants	145	0	556
ACS
Condensed Financial Statements, Captions [Line Items]
Impairment charges	600	1,500	1,500
Facility consolidation
Condensed Financial Statements, Captions [Line Items]
Restructuring charges	0	948	1,982
Global headquarters relocation
Condensed Financial Statements, Captions [Line Items]
Restructuring charges	$ 0	$ 0	$ 550

XML

Supplemental Financial Information (Allocation of Restructuring and Impairment Charges to Operating Segments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	$ 12,987	$ 2,485	$ 4,038
Allocated restructuring charges | Advanced Connectivity Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	4,288	0	244
Allocated restructuring charges | Elastomeric Material Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	401	948	2,152
Allocated restructuring charges | Power Electronics Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	7,659	0	136
Allocated impairment charges | Advanced Connectivity Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	335	1,537	1,506
Allocated impairment charges | Elastomeric Material Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	52	0	0
Allocated impairment charges | Power Electronics Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	$ 252	$ 0	$ 0

XML

Supplemental Financial Information (Components of Other Operating (Income) Expense, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental Income Statement Elements [Abstract]
Lease income	$ 0	$ (989)	$ (948)
Depreciation on leased assets	0	1,907	3,512
Loss (gain) on sale or disposal of property, plant and equipment	41	756	(164)
Gain from antitrust litigation settlement	0	0	(4,231)
Indemnity claim settlements from acquisitions	0	(715)	(700)
Economic incentive grants	(145)	0	(556)
Total other operating (income) expense, net	$ (104)	$ 959	$ (3,087)

XML

Supplemental Financial Information (Components of Interest Expense (Net)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental Income Statement Elements [Abstract]
Interest on revolving credit facility	$ 3,294	$ 7,378	$ 6,304
Interest rate swap settlements	3,191	(200)	(247)
Line of credit fees	715	576	573
Debt issuance amortization costs	593	552	552
Interest on finance leases	134	127	172
Interest income	(939)	(1,610)	(804)
Other	147	46	79
Total interest expense, net	$ 7,135	$ 6,869	$ 6,629

XML

Quarterly Results of Operations (Unaudited) (Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 210,672	$ 201,944	$ 191,157	$ 198,810	$ 193,768	$ 221,842	$ 242,852	$ 239,798	$ 802,583	$ 898,260	$ 879,091
Gross margin	80,703	75,518	69,969	65,630	64,203	78,867	85,828	85,394	$ 291,820	$ 314,292	$ 310,783
Net income (loss)	$ 15,205	$ 7,006	$ 14,520	$ 13,259	$ (28,760)	$ 23,387	$ 24,293	$ 28,399
Net income (loss) per share:
Basic (in dollars per share)	$ 0.82	$ 0.37	$ 0.78	$ 0.71	$ (1.55)	$ 1.26	$ 1.31	$ 1.53
Diluted (in dollars per share)	$ 0.81	$ 0.37	$ 0.78	$ 0.71	$ (1.55)	$ 1.25	$ 1.30	$ 1.52

XML

Share Repurchases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2015
Equity [Abstract]
Stock repurchase program, authorized amount		$ 100,000,000.0
Stock repurchase program, remaining authorized repurchase amount	$ 49,000,000.0
Share repurchases (in shares)	0

XML

Share Repurchases (Schedule of Shares of Common Stock Through the Repurchase Program) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Shares of capital stock repurchased (in shares)	0	0	23,138
Value of capital stock repurchased	$ 0	$ 0	$ 2,999

XML

Subsequent Event - Narrative (Details) - UTIS Business - employee	1 Months Ended	12 Months Ended
	Feb. 18, 2021	Dec. 31, 2020
UTIS Business | Annual Net Sales
Subsequent Event [Line Items]
Percentage of annual net sales represented by UTIS business (less than)		4.00%
Subsequent Event | Fire
Subsequent Event [Line Items]
Number of people employed at site	50

XML

SCHEDULE II (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for Credit Losses
Balance at Beginning of Period	$ 1,691	$ 1,354	$ 1,525
Charged to (Reduction of) Costs and Expenses	223	437	189
Taken Against Allowance	(232)	(100)	(360)
Other (Deductions) Recoveries	0	0	0
Balance at End of Period	1,682	1,691	1,354
Valuation on Allowance for Deferred Tax Assets
Balance at Beginning of Period	14,625	16,889	8,754
Charged to (Reduction of) Costs and Expenses	(39)	656	8,135
Taken Against Allowance	(5,336)	(2,920)	0
Other (Deductions) Recoveries	0	0	0
Balance at End of Period	$ 9,250	$ 14,625	$ 16,889