10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q

_______________________________

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

For the quarterly period ended September 30, 2023

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

_______________________________

ROGERS CORPORATION

(Exact Name of Registrant as Specified in its Charter)

_______________________________

Massachusetts	06-0513860
(State or Other Jurisdiction of	(I. R. S. Employer Identification No.)
Incorporation or Organization)

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

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	☒	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 is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s capital stock as of October 23, 2023 was 18,616,519.

ROGERS CORPORATION

FORM 10-Q

September 30, 2023

TABLE OF CONTENTS
Part I – Financial Information
	Item 1.	Condensed Consolidated Financial Statements (Unaudited):
		Condensed Consolidated Statements of Operations	3
		Condensed Consolidated Statements of Comprehensive Income (Loss)	4
		Condensed Consolidated Statements of Financial Position	5
		Condensed Consolidated Statements of Cash Flows	6
		Condensed Consolidated Statements of Shareholders’ Equity	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Results of Operations and Financial Position	24
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
	Item 4.	Controls and Procedures	33
Part II – Other Information
	Item 1.	Legal Proceedings	34
	Item 5.	Other	34
	Item 6.	Exhibits	34
		Signatures	35

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Refer to “Forward-Looking Statements” in Item 2, Management’s Discussion and Analysis of Results of Operations and Financial Position for additional information.

2

Part I – Financial Information

Item 1.    Financial Statements

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and shares in thousands, except per share amounts)

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net sales	$	229,148	$	247,231	$	703,816	$	747,467
Cost of sales	148,788		169,167		464,138		497,491
Gross margin	80,360		78,064		239,678		249,976
Selling, general and administrative expenses	44,336		50,653		150,549		164,496
Research and development expenses	7,827		9,140		25,511		25,450
Restructuring and impairment charges	1,921		373		16,361		1,119
Other operating (income) expense, net	(846)		(578)		(7,507)		(2,852)
Operating income	27,122		18,476		54,764		61,763
Equity income in unconsolidated joint ventures	641		1,162		1,559		4,237
Other income (expense), net	761		977		9		1,563
Interest expense, net	(2,328)		(2,942)		(8,627)		(5,559)
Income before income taxes	26,196		17,673		47,705		62,004
Income tax expense (benefit)	7,161		2,835		14,311		12,683
Net income	$	19,035	$	14,838	$	33,394	$	49,321
Basic earnings per share	$	1.02	$	0.79	$	1.79	$	2.62
Diluted earnings per share	$	1.02	$	0.78	$	1.79	$	2.60
Shares used in computing:
Basic earnings per share	18,627		18,818		18,619		18,804
Diluted earnings per share	18,685		18,999		18,668		18,997

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

3

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Dollars in thousands)

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net income	$	19,035	$	14,838	$	33,394	$	49,321
Foreign currency translation adjustment	(17,906)		(35,035)		(3,860)		(80,383)
Pension and other postretirement benefits:
Actuarial net loss incurred, net of tax (Note 4)	—		—		—		(15)
Amortization of loss, net of tax (Note 4)	93		87		280		260
Other comprehensive income (loss)	(17,813)		(34,948)		(3,580)		(80,138)
Comprehensive income (loss)	$	1,222	$	(20,110)	$	29,814	$	(30,817)

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

4

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(Dollars and shares in thousands, except par value)

	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	126,455	$	235,850
Accounts receivable, less allowance for credit losses of $1,147 and $1,007	185,750		177,413
Contract assets	46,476		38,853
Inventories	157,073		182,402
Prepaid income taxes	3,337		4,042
Asbestos-related insurance receivables, current portion	3,881		3,881
Other current assets	31,825		17,426
Total current assets	554,797		659,867
Property, plant and equipment, net of accumulated depreciation of $391,898 and $381,584	341,696		358,415
Investments in unconsolidated joint ventures	10,346		14,082
Deferred income taxes	58,922		50,649
Goodwill	352,214		352,365
Other intangible assets, net of amortization	124,496		133,724
Pension assets	5,523		5,251
Asbestos-related insurance receivables, non-current portion	55,926		55,926
Other long-term assets	16,946		15,935
Total assets	$	1,520,866	$	1,646,214
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	46,852	$	57,342
Accrued employee benefits and compensation	33,778		34,158
Accrued income taxes payable	7,018		5,504
Asbestos-related liabilities, current portion	4,968		4,968
Finance lease obligations, current portion	345		498
Other accrued liabilities	23,176		40,067
Total current liabilities	116,137		142,537
Borrowings under revolving credit facility	80,000		215,000
Pension and other postretirement benefits liabilities	1,618		1,501
Asbestos-related liabilities, non-current portion	59,739		60,065
Finance lease obligations, non-current portion	1,147		1,295
Non-current income tax	9,560		9,985
Deferred income taxes	23,720		23,557
Other long-term liabilities	18,333		19,808
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,616 and 18,574 shares issued and outstanding	18,616		18,574
Additional paid-in capital	148,992		140,702
Retained earnings	1,131,848		1,098,454
Accumulated other comprehensive loss	(88,844)		(85,264)
Total shareholders' equity	1,210,612		1,172,466
Total liabilities and shareholders' equity	$	1,520,866	$	1,646,214

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

5

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Nine Months Ended
	September 30, 2023		September 30, 2022
Operating Activities:
Net income	$	33,394	$	49,321
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	39,823		34,352
Equity compensation expense	10,874		11,576
Deferred income taxes	(8,297)		(14,076)
Equity in undistributed income of unconsolidated joint ventures	(1,559)		(4,237)
Dividends received from unconsolidated joint ventures	4,254		4,677
Pension and other postretirement benefits	205		23
Gain on sale of business	(704)		—
(Gain) loss on sale or disposal of property, plant and equipment	(679)		(15)
Impairment charges	—		212
UTIS fire fixed asset and inventory write-offs	—		199
Provision (benefit) for credit losses	124		331
Changes in assets and liabilities:
Accounts receivable	(17,531)		(23,759)
Proceeds from insurance/government subsidies related to operations	5,705		1,153
Contract assets	(8,635)		(9,320)
Inventories	22,427		(47,500)
Pension and postretirement benefit contributions	(9)		(141)
Other current assets	2,075		(4,919)
Accounts payable and other accrued expenses	(20,205)		(12,083)
Other, net	(1,740)		16,040
Net cash provided by operating activities	59,522		1,834
Investing Activities:
Acquisition of business, net of cash received	—		(1,300)
Disposition of business	1,693		—
Capital expenditures	(34,539)		(87,000)
Proceeds from the sale of property, plant and equipment, net	745		7,252
Proceeds from insurance claims	1,755		—
Net cash used in investing activities	(30,346)		(81,048)
Financing Activities:
Proceeds from borrowings under revolving credit facility	—		100,000
Repayment of debt principal and finance lease obligations	(135,328)		(202)
Line of credit issuance costs	(1,742)		—
Payments of taxes related to net share settlement of equity awards	(2,542)		(10,751)
Proceeds from issuance of shares to employee stock purchase plan	—		950
Net cash provided by (used in) financing activities	(139,612)		89,997
Effect of exchange rate fluctuations on cash	1,041		(6,618)
Net increase (decrease) in cash and cash equivalents	(109,395)		4,165
Cash and cash equivalents at beginning of period	235,850		232,296
Cash and cash equivalents at end of period	$	126,455	$	236,461
Supplemental Disclosures:
Accrued capital additions	$	2,493	$	9,330
Cash paid during the year for:
Interest, net of amounts capitalized	$	8,851	$	5,491
Income taxes	$	6,261	$	19,617

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

6

ROGERS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars and shares in thousands)

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Capital Stock
Balance, beginning of period	$	18,616	$	18,811	$	18,574	$	18,730
Shares issued for vested restricted stock units, net of shares withheld for taxes	—		1		35		69
Shares issued for employee stock purchase plan	—		—		—		6
Shares issued to directors	—		—		7		7
Balance, end of period	18,616		18,812		18,616		18,812
Additional Paid-In Capital
Balance, beginning of period	145,219		161,885		140,702		163,583
Shares issued for vested restricted stock units, net of shares withheld for taxes	(29)		(129)		(2,577)		(10,820)
Shares issued for employee stock purchase plan	—		—		—		944
Shares issued to directors	—		—		(7)		(7)
Equity compensation expense	3,802		3,520		10,874		11,576
Balance, end of period	148,992		165,276		148,992		165,276
Retained Earnings
Balance, beginning of period	1,112,813		1,016,308		1,098,454		981,825
Net income	19,035		14,838		33,394		49,321
Balance, end of period	1,131,848		1,031,146		1,131,848		1,031,146
Accumulated Other Comprehensive Loss
Balance, beginning of period	(71,031)		(90,433)		(85,264)		(45,243)
Other comprehensive income (loss)	(17,813)		(34,948)		(3,580)		(80,138)
Balance, end of period	(88,844)		(125,381)		(88,844)		(125,381)
Total Shareholders’ Equity	$	1,210,612	$	1,089,853	$	1,210,612	$	1,089,853

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

7

ROGERS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Basis of Presentation

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.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the accompanying condensed consolidated financial statements include all normal recurring adjustments necessary for their fair presentation in accordance with GAAP. All significant intercompany balances and transactions have been eliminated.

Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

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.

From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts and copper derivative contracts. Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Derivative Instruments at Fair Value as of September 30, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(53)	$	—	$	(53)
Copper derivative contracts	$	—	$	299	$	—	$	299

	Derivative Instruments at Fair Value as of December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(82)	$	—	$	(82)
Copper derivative contracts	$	—	$	500	$	—	$	500

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position.

For additional information on 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 and commodity pricing risk (primarily related to copper). We do not use derivative instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of foreign currency and commodity 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.

8

•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.

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 condensed consolidated 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) in the condensed consolidated statements of comprehensive income (loss). This gain or loss is reclassified into earnings in the same line item of the condensed consolidated statements of operations associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings.

Foreign Currency

During the three months ended September 30, 2023, 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 condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2023, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	18,999,562
EUR/USD	€	10,440,705
KRW/USD	₩	3,994,650,000
JPY/EUR	¥	50,000,000

Commodity

As of September 30, 2023, we had 12 outstanding contracts to hedge exposure related to the purchase of copper in our AES operating segment. 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 condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2023, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2023 - December 2023	69 metric tons per month
January 2024 - March 2024	69 metric tons per month
April 2024 - June 2024	69 metric tons per month
July 2024 - September 2024	69 metric tons per month

9

Effects on Financial Statements

The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows:

		Three Months Ended				Nine Months Ended
(Dollars in thousands)	Financial Statement Line Item	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	268	$	(101)	$	1,103	$	(1,019)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(182)	$	(171)	$	(602)	$	(969)

Note 4 – Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Total
Balance as of December 31, 2022	$	(75,575)	$	(9,689)	$	(85,264)
Other comprehensive income (loss) before reclassifications	(3,860)		—		(3,860)
Amounts reclassified from accumulated other comprehensive loss	—		280		280
Net current-period other comprehensive income (loss)	(3,860)		280		(3,580)
Balance as of September 30, 2023	$	(79,435)	$	(9,409)	$	(88,844)
Balance as of December 31, 2021	$	(35,641)	$	(9,602)	$	(45,243)
Other comprehensive income (loss) before reclassifications	(80,383)		(15)		(80,398)
Amounts reclassified from accumulated other comprehensive loss	—		260		260
Net current-period other comprehensive income (loss)	(80,383)		245		(80,138)
Balance as of September 30, 2022	$	(116,024)	$	(9,357)	$	(125,381)

(1) Net of taxes of $1,846 and $1,926 as of September 30, 2023 and December 31, 2022, respectively. Net of taxes of $2,056 and $2,125 as of September 30, 2022 and December 31, 2021, respectively.

Note 5 – Inventories

Inventories, which are valued at the lower of cost or net realizable value, consisted of the following:

(Dollars in thousands)	September 30, 2023		December 31, 2022
Raw materials	$	71,133	$	87,851
Work-in-process	48,377		45,100
Finished goods	37,563		49,451
Total inventories	$	157,073	$	182,402

Note 6 – Goodwill and Other Intangible Assets

Goodwill

The changes in the net carrying amount of goodwill by operating segment were as follows:

(Dollars in thousands)	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
December 31, 2022	$	115,352	$	234,789	$	2,224	$	352,365
Foreign currency translation adjustment	(520)		369		—		$	(151)
September 30, 2023	$	114,832	$	235,158	$	2,224	$	352,214

10

Other Intangible Assets

The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows:

	September 30, 2023						December 31, 2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	175,214	$	87,232	$	87,982	$	178,605	$	85,569	$	93,036
Technology	75,898		55,788		20,110		82,349		59,052		23,297
Trademarks and trade names	18,840		7,040		11,800		19,098		6,639		12,459
Covenants not to compete	1,479		1,051		428		1,919		1,199		720
Total definite-lived other intangible assets	271,431		151,111		120,320		281,971		152,459		129,512
Indefinite-lived other intangible asset	4,176		—		4,176		4,212		—		4,212
Total other intangible assets	$	275,607	$	151,111	$	124,496	$	286,183	$	152,459	$	133,724

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

Amortization expense was $3.4 million and $4.1 million for the three months ended September 30, 2023 and 2022, respectively, and $10.0 million and $12.6 million for the nine months ended September 30, 2023 and 2022, respectively. The estimated future amortization expense is $3.3 million for the remainder of 2023 and $12.2 million, $10.6 million, $10.2 million and $9.9 million for 2024, 2025, 2026 and 2027, respectively.

The weighted average amortization period as of September 30, 2023, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	7.5 years
Technology	3.4 years
Trademarks and trade names	10.0 years
Covenants not to compete	0.6 years
Total definite-lived other intangible assets	7.0 years

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:

(Dollars and shares in thousands, except per share amounts)	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator:
Net income	$	19,035	$	14,838	$	33,394	$	49,321
Denominator:
Weighted-average shares outstanding - basic	18,627		18,818		18,619		18,804
Effect of dilutive shares	58		181		49		193
Weighted-average shares outstanding - diluted	18,685		18,999		18,668		18,997
Basic earnings per share	$	1.02	$	0.79	$	1.79	$	2.62
Diluted earnings per share	$	1.02	$	0.78	$	1.79	$	2.60

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 the three months ended September 30, 2023 and 2022, 8,000 shares and no shares were excluded, respectively.

11

Note 8 – Capital Stock and Equity Compensation

Equity Compensation

Performance-Based Restricted Stock Units

As of September 30, 2023, we had performance-based restricted stock units from 2023 and 2021 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 criterion: 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 criterion of the awards is considered a market condition. As such, the fair value of this measurement criterion 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.

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2023:

	February 9, 2023
Expected volatility	53.2%
Expected term (in years)	2.9
Risk-free interest rate	4.08%

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 the nine months ended September 30, 2023 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2022	65,513
Awards granted	50,551
Stock issued	(8,775)
Awards cancelled	(31,943)
Awards outstanding as of September 30, 2023	75,346

We recognized $1.3 million and $1.1 million of compensation expense for performance-based restricted stock units for the three months ended September 30, 2023 and 2022, respectively. We recognized $2.6 million and $3.3 million of compensation expense for performance-based restricted stock units for the nine months ended September 30, 2023 and 2022, respectively.

Time-Based Restricted Stock Units

As of September 30, 2023, we had time-based restricted stock unit awards from 2023, 2022, 2021 and 2020 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 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 the nine months ended September 30, 2023 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2022	124,284
Awards granted	67,094
Stock issued	(43,254)
Awards cancelled	(24,296)
Awards outstanding as of September 30, 2023	123,828

We recognized $2.5 million and $2.4 million of compensation expense for time-based restricted stock units for the three months ended September 30, 2023 and 2022, respectively. We recognized $7.1 million and $7.0 million of compensation expense for time-based restricted stock units for the nine months ended September 30, 2023 and 2022, respectively.

Deferred Stock Units

We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 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 the nine months ended September 30, 2023 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2022	6,850
Awards granted	8,100
Stock issued	(6,850)
Awards outstanding as of September 30, 2023	8,100

We recognized no compensation expense for deferred stock units for the three months ended September 30, 2023 and 2022, respectively. We recognized $1.2 million and $1.3 million of compensation expense for the nine months ended September 30, 2023, and 2022, respectively.

Note 9 – Debt

In October 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 amended and restated the Third Amended Credit Agreement, and provided 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 could have been 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 extended the maturity, the date on which all amounts borrowed or outstanding under the Fourth Amended Credit Agreement were due, from February 17, 2022 to March 31, 2024.

All obligations under the Fourth Amended Credit Agreement were guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fourth Amended Credit Agreement (the Previous Guarantors). The obligations were also secured by a Fourth Amended and Restated Pledge and Security Agreement, dated as of October 16, 2020, entered into by us and the Previous Guarantors which granted to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of our and the Previous Guarantors’ non-real estate assets. These assets included, but were not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

On March 5, 2021, the U.K. Financial Conduct Authority (FCA) publicly announced that immediately after December 31, 2021, publication of most Euro, Swiss Franc, Japanese Yen and Pound Sterling LIBOR settings will permanently cease. On October 15, 2021, Rogers Corporation and JPMorgan Chase Bank, N.A. entered into an amendment (Amendment No. 1) to the Fourth Amended Credit Agreement to adopt a new benchmark interest rate to replace the discontinued LIBOR reference rates.

Borrowings under the Fourth Amended Credit Agreement could have been made as alternate base rate loans, euro-currency loans, or RFR loans. Alternate base rate loans bore interest at a base reference rate plus a spread of 62.5 to 100.0 basis points,

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depending on our leverage ratio. The base reference rate was 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 bore interest based on adjusted LIBOR plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio. RFR loans bore interest based upon the Sterling Overnight Index Average (SONIA) plus 0.0326% plus a spread of 162.5 to 200.0 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding, we incurred an annual fee of 25 to 35 basis points (based upon our leverage ratio), paid quarterly, of the unused amount of the lenders’ commitments under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement contained customary representations and warranties, covenants, mandatory prepayments and events of default under which our payment obligations may be accelerated. If an event of default occurred, the lenders may 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 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 were 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 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 have resulted from the dividend payment and (ii) our total net leverage ratio did not exceed 2.75 to 1.00. If our total net leverage ratio exceeded 2.75 to 1.00, we may have nonetheless made 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 have resulted from the payments.

On March 24, 2023, we entered into a Fifth Amended and Restated Credit Agreement (the Fifth Amended Credit Agreement) with each of the lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent, and HSBC Bank USA, National Association, Wells Fargo Bank, National Association, Citibank, N.A. and Citizens Bank, N.A. as Co-Syndication Agents. The Fifth Amended Credit Agreement amends and restates the Fourth Amended Credit Agreement, and provides for (1) a revolving credit facility with up to $450.0 million of revolving loans, with sub-limits for multicurrency borrowings, letters of credit and swing-line notes, and (2) a $225.0 million expansion 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 Fifth Amended Credit Agreement). The Fifth Amended Credit Agreement extends the maturity, the date on which all amounts borrowed or outstanding under the Fifth Amended Credit Agreement are due, from March 31, 2024 to March 24, 2028.

All obligations under the Fifth Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fifth Amended Credit Agreement (the Guarantors). The obligations are also secured by a Fifth Amended and Restated Pledge and Security Agreement, dated as of March 24, 2023, entered into by us and the Guarantors which grants to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of the non-real estate assets of ours and the Guarantors. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

Borrowings under the Fifth Amended Credit Agreement bear interest based on one of two options. Alternate base rate loans will bear interest at a rate that includes a base reference rate plus a spread of 62.5 to 100.0 basis points, depending on our leverage ratio. The base reference rate will be the greater of the (1) prime rate, (2) federal funds effective rate plus 50 basis points, and (3) one-month Term Secured Overnight Financial Rate (SOFR) plus 110 basis points. Loans bearing an interest rate determined by reference to the Adjusted Term SOFR Rate, the Adjusted Euro Interbank Offered Rate (EURIBOR), or the Adjusted (Tokyo Interbank Offered Rate (TIBOR) (each as defined in the Fifth Amended Credit Agreement) will bear interest based on the screen rate plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of September 30, 2023, the spread was 162.5 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding, we incur an annual fee of 25 to 35 basis points (based upon our leverage ratio), paid quarterly, of the unused amount of the lenders’ commitments under the Fifth Amended Credit Agreement.

The Fifth Amended Credit Agreement contains customary representations and warranties, covenants, mandatory prepayments and events of default under which the Company’s payment obligations may be accelerated. The financial covenants include a requirement 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 3.75 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 in the calculation of the total net leverage ratio. The Fifth 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

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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 and our interest coverage ratio was greater than or equal to 3.00 to 1.00 as of September 30, 2023.

There were no borrowings under the Fifth Amended Credit Agreement for the three and nine months ended September 30, 2023. There were $30.0 million and $100.0 million in borrowings under the Fourth Amended Credit Agreement for the three and nine months ended September 30, 2022, respectively. We are not required to make any quarterly principal payments under the Fifth Amended Credit Agreement, and we were not required to make any quarterly principal payments under the Fourth Amended Credit Agreement. We made $50.0 million of discretionary principal payments for the three months ended September 30, 2023, and $135.0 million of discretionary principal payments for the nine months ended September 30, 2023. There were no discretionary principal payments made for the three and nine months ended September 30, 2022.

We had $80.0 million outstanding borrowings under our revolving credit facility as of September 30, 2023, and $215.0 million as of December 31, 2022. We had $2.3 million and $0.9 million of outstanding line of credit issuance costs as of September 30, 2023 and December 31, 2022, respectively, which will be amortized over the life of the Fifth Amended Credit Agreement.

Note 10 - Leases

Finance Leases

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine- month periods ended September 30, 2023 and 2022. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine- month periods ended September 30, 2023 and 2022.

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:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating leases expense	$	1,004	$	652	$	2,851	$	1,896
Short-term leases expense	$	211	$	168	$	568	$	420
Payments on operating lease obligations	$	871	$	663	$	2,606	$	2,231

Lease Balances in Statements of Financial Position

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

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2023		December 31, 2022
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,477	$	1,749
Operating lease right-of-use assets	Other long-term assets	$	12,487	$	13,013
Finance lease obligations, current portion	Finance lease obligations, current portion	$	345	$	498
Finance lease obligations, non-current portion	Finance lease obligations, non-current portion	$	1,147	$	1,295
Total finance lease obligations		$	1,492	$	1,793
Operating lease obligations, current portion	Other accrued liabilities	$	2,933	$	2,842
Operating lease obligations, non-current portion	Other long-term liabilities	$	9,752	$	10,689
Total operating lease obligations		$	12,685	$	13,531

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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 September 30, 2023:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2023	$	103	$	(2)	$	101	$	1,386	$	(204)	$	1,182
2024	415		(11)		404		4,171		(834)		3,337
2025	416		(11)		405		3,537		(860)		2,677
2026	409		(11)		398		2,973		(873)		2,100
2027	205		(11)		194		2,465		(826)		1,639
Thereafter	156		(9)		147		8,896		(4,868)		4,028
Total lease payments	1,704		(55)		1,649		23,428		(8,465)		14,963
Less: Interest	(164)		7		(157)		(4,348)		2,070		(2,278)
Present Value of Net Future Minimum Lease Payments	$	1,540	$	(48)	$	1,492	$	19,080	$	(6,395)	$	12,685

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	4.2 years	5.8 years
Weighted Average Discount Rate	4.07%	4.89%

Note 11 – Pension Benefits and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of September 30, 2023, we had one qualified noncontributory defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which was frozen and ceased accruing benefits in 2013. 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.

Components of Net Periodic Benefit (Credit) Cost

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

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	—	$	—	$	—	$	—	$	19	$	10	$	57	$	30
Interest cost	263		191		799		573		17		8		51		24
Expected return of plan assets	(354)		(340)		(1,066)		(1,020)		—		—		—		—
Amortization of prior service credit	—		—		—		—		—		—		—		—
Amortization of net loss (gain)	116		111		360		333		(3)		—		(7)		—
Net periodic benefit (credit) cost	$	25	$	(38)	$	93	$	(114)	$	33	$	18	$	101	$	54

Employer Contributions

There were no required or voluntary contributions made to the Union Plan for each of the three and nine months ended September 30, 2023 and 2022. Additionally, we are not required to make additional contributions to the Union Plan for the remainder of 2023.

As there is no funding requirement for the other postretirement benefit plans, we funded these benefit payments as incurred, which were immaterial for each of the three and nine months ended September 30, 2023 and 2022, using cash from operations.

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Note 12 – Commitments and Contingencies

We are currently engaged in the following material 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 incurred $2.0 million of aggregate remediation costs through September 30, 2023, and the accrual for future remediation efforts is $0.7 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 for the nine months ended September 30, 2023:

	Asbestos Claims
Claims outstanding as of January 1, 2023	537
New claims filed	111
Pending claims concluded(1)	(87)
Claims outstanding as of September 30, 2023	561

(1) For the nine months ended September 30, 2023, 75 claims were dismissed and 12 claims were settled. Settlements totaled approximately $4.5 million for the nine months ended September 30, 2023.

Impact 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 that it intends 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 we incurred an immaterial amount of expenses for each of the three- and nine- month periods ended September 30, 2023 and 2022, 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 for future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded.

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Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income.

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

(Dollars in thousands)	September 30, 2023		December 31, 2022
Asbestos-related liabilities	$	64,707	$	65,033
Asbestos-related insurance receivables	$	59,807	$	59,807

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

Our effective income tax rate was 27.3% and 16.0% for the three months ended September 30, 2023 and 2022, respectively. The increase from the third quarter of 2022 was primarily due to the third quarter 2022 decrease in reserves for uncertain tax positions that did not recur in 2023. Our effective income tax rate was 30.0% and 20.5% for the nine months ended September 30, 2023 and 2022, respectively. The increase from the third quarter of 2022 was primarily due to the third quarter 2022 decrease in reserves for uncertain tax positions that did not recur in 2023.

The total amount of unrecognized tax benefits as of September 30, 2023 was $8.9 million, of which $7.9 million would affect our effective tax rate if recognized. Additionally, the balance of unrecognized tax benefits as of September 30, 2023 also included $1.0 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of September 30, 2023, we had $1.6 million accrued for the payment of interest.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2019 through 2022 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 2019.

Note 14 – Operating Segment Information

Our reporting structure is comprised of the following strategic operating segments: AES and EMS. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment.

Our AES operating segment designs, develops, manufactures and sells circuit materials, ceramic substrate materials, busbars and cooling solutions for applications in electric and hybrid electric vehicles (EV/HEV), automotive (i.e., advanced driver assistance systems (ADAS)), aerospace and defense (i.e., antenna systems, communication systems and phased array radar systems), renewable energy (i.e., wind and solar), wireless infrastructure (i.e., power amplifiers, antennas and small cells), mass transit, industrial (variable frequency drives), connected devices (i.e., mobile internet devices and thermal solutions) and wired infrastructure (i.e., computing and internet protocol (IP) infrastructure) markets.

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 EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense and footwear and impact mitigation markets; customized silicones used in flex heater and semiconductor thermal applications for EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; and 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 EV/HEV, general industrial, automotive and aerospace and defense markets.

Our Other operating segment consists of elastomer components for applications in the 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.

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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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2023
Net sales - recognized over time	$	60,788	$	1,331	$	4,093	$	66,212
Net sales - recognized at a point in time	65,612		96,655		669		162,936
Total net sales	$	126,400	$	97,986	$	4,762	$	229,148
Operating income	$	5,674	$	19,851	$	1,597	$	27,122
Three Months Ended September 30, 2022
Net sales - recognized over time	$	72,969	$	3,346	$	4,110	$	80,425
Net sales - recognized at a point in time	57,639		107,637		1,530		166,806
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
Operating income	$	2,263	$	14,322	$	1,891	$	18,476
Nine Months Ended September 30, 2023
Net sales - recognized over time	$	180,338	$	17,423	$	12,011	$	209,772
Net sales - recognized at a point in time	212,102		278,153		3,789		494,044
Total net sales	$	392,440	$	295,576	$	15,800	$	703,816
Operating income	$	6,001	$	43,293	$	5,470	$	54,764
Nine Months Ended September 30, 2022
Net sales - recognized over time	$	214,091	$	9,090	$	12,763	$	235,944
Net sales - recognized at a point in time	190,835		317,223		3,465		511,523
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
Operating income	$	12,342	$	43,920	$	5,501	$	61,763

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Net sales by operating segment and by geographic area were as follows:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2023
United States	$	20,403	$	37,269	$	1,060	$	58,732
Other Americas	273		2,453		(34)		2,692
Total Americas	20,676		39,722		1,026		61,424
China	33,719		28,341		1,762		63,822
Other APAC	20,766		8,793		555		30,114
Total APAC	54,485		37,134		2,317		93,936
Germany	24,830		6,295		95		31,220
Other EMEA	26,409		14,835		1,324		42,568
Total EMEA	51,239		21,130		1,419		73,788
Total net sales	$	126,400	$	97,986	$	4,762	$	229,148
Three Months Ended September 30, 2022
United States	$	33,969	$	46,772	$	1,087	$	81,828
Other Americas	843		2,534		247		3,624
Total Americas	34,812		49,306		1,334		85,452
China	36,126		37,349		2,290		75,765
Other APAC	16,544		5,173		508		22,225
Total APAC	52,670		42,522		2,798		97,990
Germany	19,727		7,310		393		27,430
Other EMEA	23,399		11,845		1,115		36,359
Total EMEA	43,126		19,155		1,508		63,789
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231

(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.

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(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Nine Months Ended September 30, 2023
United States	$	63,263	$	123,109	$	3,127	$	189,499
Other Americas	3,232		11,961		282		15,475
Total Americas	66,495		135,070		3,409		204,974
China	110,237		69,227		6,187		185,651
Other APAC	67,817		23,760		1,934		93,511
Total APAC	178,054		92,987		8,121		279,162
Germany	74,002		22,449		334		96,785
Other EMEA	73,889		45,070		3,936		122,895
Total EMEA	147,891		67,519		4,270		219,680
Total net sales	$	392,440	$	295,576	$	15,800	$	703,816
Nine Months Ended September 30, 2022
United States	$	94,907	$	136,340	$	3,075	$	234,322
Other Americas	2,814		7,550		614		10,978
Total Americas	97,721		143,890		3,689		245,300
China	113,448		99,734		6,048		219,230
Other APAC	60,023		18,418		1,778		80,219
Total APAC	173,471		118,152		7,826		299,449
Germany	57,653		23,784		874		82,311
Other EMEA	76,081		40,487		3,839		120,407
Total EMEA	133,734		64,271		4,713		202,718
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467

(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

We have 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 contract assets on the condensed consolidated statements of financial position.

Contract assets by operating segment were as follows:

(Dollars in thousands)	September 30, 2023		December 31, 2022
Advanced Electronics Solutions	$	41,264	$	33,736
Elastomeric Material Solutions	1,503		1,584
Other	3,709		3,533
Total contract assets	$	46,476	$	38,853

We did not have any contract liabilities as of September 30, 2023 or December 31, 2022. No impairment losses were recognized for the three- and nine- month periods ended September 30, 2023 and 2022, respectively, on any receivables or contract assets arising from our contracts with customers.

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Note 15 – Supplemental Financial Information

Restructuring and Impairment Charges

The components of the “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Restructuring charges
Manufacturing footprint optimization	$	—	$	373	$	—	$	907
Global workforce reduction	656		—		8,746		—
Facility consolidations	1,265		—		7,615		—
Total restructuring charges	1,921		373		16,361		907
Impairment charges
Fixed asset impairment charges	—		—		—		212
Total impairment charges	—		—		—		212
Total restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119

Allocation of Restructuring and Impairment Charges to Operating Segments

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

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Advanced Electronics Solutions
Allocated restructuring charges	$	1,636	$	371	$	10,213	$	920
Allocated impairment charges	—		—		—		212
Elastomeric Material Solutions
Allocated restructuring charges	285		2		6,148		(13)
Allocated impairment charges	—		—		—		—
Total restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119

Restructuring Charges - Global Workforce Reduction

On February 16, 2023, we announced a reduction in force plan of our global workforce that was substantially completed in the first half of 2023, and will conclude in the fourth quarter of 2023. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $8.7 million to $8.9 million in pre-tax restructuring charges related to this plan, all of which are expected to be in the form of cash-based expenditures and substantially all of which are expected to be related to employee severance and other termination benefits.

(Dollars in thousands)	Global Workforce Reduction Restructuring Severance and Related Benefits
Balance as of December 31, 2022	$	—
Provisions	8,476
Payments	(8,133)
Foreign currency translation adjustment	41
Balance as of September 30, 2023	$	384

Restructuring Charges - Facility Consolidations

In late 2022 and early 2023, we announced our intention to exit certain facilities in the U.S. and Asia. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $7.7 million to $8.3 million in pre-tax restructuring charges related to these facility consolidations, most of which are expected to be in the form of accelerated depreciation.

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As part of our facility consolidations plan, on February 17, 2023, we entered into an asset purchase agreement to sell our high-performance engineered cellular elastomer business in our EMS operating segment for a purchase price of $1.8 million. The first phase of the deal, which pertained to the net assets other than the land and building, was completed in late March 2023, while the second phase, which pertained to the sale of the land and building, was completed in early September 2023. Of the $1.8 million purchase price, $1.0 million and $0.8 million were allocated to the first and second phases of the deal, respectively. The first phase of the deal included $3.7 million in assets and $3.1 million in liabilities. The assets were primarily comprised of accounts receivable, contract assets and inventories, while the liabilities were primarily comprised of accounts payable and other accrued liabilities, along with the previously recognized accrual against the net assets of the business based on the estimated fair value of the business in December 2022. We incurred $1.2 million of selling costs in the first quarter of 2023, which were recorded in “Selling, general and administrative expenses” in our condensed consolidated statements of operations.

As of September 30, 2023 we recognized $16.1 million of assets held for sale within the “Other current assets” financial statement line item of our condensed consolidated statements of financial position. This includes $13.1 million for land and building at our Price Road facility in Chandler, Arizona and $3.0 million of land and building at one of our Suzhou, China facilities. During the third quarter of 2023, the previously disclosed asset purchase agreement to sell our Price Road facility was terminated and the facility remains held for sale.

Other Operating (Income) Expense, Net

The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
UTIS fire
Inventory charges	$	—	$	(1)	$	—	$	199
Professional services	77		369		596		1,295
Lease obligations	—		91		—		369
Compensation & benefits	—		562		—		1,931
Other	—		2		—		15
Insurance recoveries	(730)		(1,604)		(7,424)		(6,646)
Total UTIS fire	(653)		(581)		(6,828)		(2,837)
(Gain) loss on sale or disposal of property, plant and equipment	(193)		3		(679)		(15)
Total other operating (income) expense, net	$	(846)	$	(578)	$	(7,507)	$	(2,852)

In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea, which manufactures eSorba® polyurethane foams used in portable electronics and display applications. The site was safely evacuated and there were no reported injuries; however, there was extensive damage to the manufacturing site and some damage to nearby property. Commercial production at our new location in Siheung, South Korea commenced in late January 2023.

In connection with the UTIS fire, we recognized insurance recoveries of $0.7 million and $7.4 million related to our ongoing insurance claims for business interruption and property damage for the three and nine months ended September 30, 2023, respectively. We incurred $0.1 million and $0.6 million for various professional services for the three and nine months ended September 30, 2023, respectively, in connection with the pursuit of our insurance claims.

In connection with the UTIS fire, we recognized insurance recoveries of $1.6 million and $6.6 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three and nine months ended September 30, 2022, respectively. We incurred $0.4 million and $1.3 million for various professional services for the three and nine months ended September 30, 2022, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.9 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three and nine months ended September 30, 2022, respectively.

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Interest Expense, Net

The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Interest on revolving credit facility	$	(1,939)	$	(2,831)	$	(8,306)	$	(5,014)
Line of credit fees	(219)		(118)		(565)		(409)
Debt issuance amortization costs	(123)		(178)		(527)		(536)
Interest income	133		175		978		462
Other	(180)		10		(207)		(62)
Total interest expense, net	$	(2,328)	$	(2,942)	$	(8,627)	$	(5,559)

Item 2.    Management’s Discussion and Analysis of Results of Operations and Financial Position

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 Quarterly Report on Form 10-Q 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, supply chains, 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;

•failure to successfully execute on the Company’s long-term growth strategy as a standalone company;

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

•the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations, the imposition of tariffs and other trade restrictions, as well as the potential for U.S.-China supply chain decoupling;

•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 and willingness 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;

•the impact of sanctions, export controls and other foreign asset or investment restriction;

•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;

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•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;

•disruptions in, or breaches of, our information technology systems; and

•our terminated merger with DuPont de Nemours, Inc. (DuPont), which may cause us to incur substantial costs that may adversely affect our financial results and operations and the market price of our capital stock, including as a result of litigation.

Our forward-looking statements are expressly qualified by these cautionary statements, which you should consider carefully, along with the risks discussed in this section and elsewhere in this report, including under the section entitled “Risk Factors” in Part II, Item 1A and in our Annual Report on Form 10-K for the year ended December 31, 2022 (the Annual Report) and our other reports filed with the Securities and Exchange Commission, 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.

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and the related notes that appear elsewhere in this Form 10-Q along with our audited consolidated financial statements and the related notes thereto in our Annual Report.

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 two strategic operating segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS). The remaining operations, which represent our non-core businesses, are reported in our 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 and profitability strategy is based upon the following principles: (1) market-driven organization, (2) innovation leadership, (3) synergistic mergers and acquisitions, and (4) operational excellence. Our priorities in executing this strategy are focused on driving near-term improvements to profitability and improving the growth outlook for the Company over the next several years by further strengthening our focus on commercial activities, expanding capacity to meet customer demand and driving innovation.

As a market-driven organization, we are focused on capitalizing on growth opportunities in the increasing electrification of vehicles, including electric and hybrid electric vehicles (EV/HEV), and increasing use of advanced driver assistance systems (ADAS) in the automotive industry, the advancement of communication systems in aerospace and defense, the growth of 5G smartphones in the portable electronics industry and in renewable energy. In addition to our focus on these markets, we sell into a variety of other markets including general industrial, wireless infrastructure and mass transit.

Our growth strategy is based on addressing trends in these markets and applying our repeatable customer engagement process. Our sales engineers and technical service employees work closely with our customers to understand their complex challenges. They then leverage our innovation and technology capabilities and deep applications expertise to provide unique solutions to customers’ challenges. In addition to these capabilities, our strategy for success as a manufacturer of engineered materials and components is also built on our reputation for high performance and reliability solutions, trusted customer relationships, a broad product portfolio and custom design capabilities. Through this strategy we expect to be able to drive further commercial wins, which provide the potential for higher growth in the future. We have also expanded our capabilities through organic investment and acquisitions and strive to ensure high quality solutions for our customers.

Our operational excellence efforts are focused on driving significant near-term improvement in our profitability. These efforts include focusing on adding strategic new hires and improving processes and tools to achieve better performance. We have also taken specific cost improvement actions in the fourth quarter of 2022 and first half of 2023 that will benefit subsequent quarters. These actions include optimizing our manufacturing footprint, divesting non-core product lines and reduction to manufacturing and corporate employees. We continue to review and re-align our manufacturing and engineering footprint in an effort to maintain a leading competitive position globally and to support 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.

If we are able to successfully execute on our strategy, we see an opportunity to return to historical levels of profitability and accelerate revenue growth, relative to 2022, over the next several years, led by organic growth and complemented by targeted

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acquisitions. This outlook is supported by our participation in a number of fast-growing markets and by our strong competitive positions in these markets. The fastest growing market opportunity is expected to be EV/HEV where third-party analysis projects that the market will grow at compound annual growth rate of between 20% and 25% over the next several years. Within the EV/HEV market, we believe our advanced battery cell pads, ceramic substrates and power interconnects provide multiple content opportunities to capitalize on this growth. In each of these areas we have secured a number of design wins and have a strong opportunity pipeline, which provides confidence in our growth outlook. Other markets with a strong growth trajectory include ADAS, aerospace and defense, portable electronics and renewable energy. Each of these markets is expected to contribute to our growth.

Terminated Merger with DuPont

On November 1, 2021, we entered into a definitive merger agreement to be acquired by DuPont de Nemours, Inc. (DuPont) in an all-cash transaction at a price of $277.00 per share of the Company’s capital stock. The merger agreement provided for the acquisition of Rogers Corporation by DuPont through the merger of Cardinalis Merger Sub, Inc., a wholly owned subsidiary of DuPont, with and into Rogers Corporation, with Rogers Corporation surviving the merger as a wholly owned subsidiary of DuPont. Company shareholders approved the merger agreement at a special shareholder meeting held on January 25, 2022. The merger agreement provided both Rogers Corporation and DuPont with a right to terminate the merger agreement if the merger had not closed on or before November 1, 2022. Consummation of the merger was subject to various customary closing conditions, including regulatory approval by the State Administration for Market Regulation of China (SAMR). As of November 1, 2022, the parties had not received regulatory approval from SAMR. On November 1, 2022, the Company received from DuPont a notice of termination of the merger agreement. Pursuant to the terms of the merger agreement, the Company received a regulatory termination fee from DuPont in the amount of $162.5 million, before taxes, and incurred a transaction-related fee of $20.4 million.

COVID-19 Update

The global COVID-19 pandemic has affected and continues to affect Rogers’ business, operations and demand from customers. Surges in COVID-19 cases in China during 2022 resulted in lockdowns as well as various restrictions. These measures have not disrupted our manufacturing efforts, however, they have caused logistics challenges. Even since China ended its zero COVID policy in late 2022, although a significant percentage of our employees in Suzhou, China were diagnosed with COVID, our manufacturing has not been materially disrupted and to date we have received no reports of permanent disability or death among our employees. 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.

Due to the above circumstances and as described generally in this Form 10-Q, our results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year.

Executive Summary

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

•In the third quarter of 2023 as compared to the third quarter of 2022, our net sales decreased approximately 7.3% to $229.1 million, our gross margin increased approximately 350 basis points to 35.1% from 31.6%, and we had an operating income of 11.8% compared to operating income of 7.5%, an approximately 430 basis points increase.

•We made $50.0 million of discretionary principal payments on our revolving credit facility in the third quarter of 2023.

•On February 17, 2023, we entered into an asset purchase agreement to sell our high-performance engineered cellular elastomer business for a purchase price of $1.8 million. The first phase of the deal, which pertained to the net assets other than the land and building, was completed in late March 2023, while the second phase, which pertained to the sale of the land and building, was completed in early September 2023.

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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:

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Gross margin	35.1	%	31.6	%	34.1	%	33.4	%
Selling, general and administrative expenses	19.4	%	20.5	%	21.4	%	22.0	%
Research and development expenses	3.4	%	3.7	%	3.6	%	3.4	%
Restructuring and impairment charges	0.8	%	0.2	%	2.3	%	0.1	%
Other operating (income) expense, net	(0.3)	%	(0.3)	%	(1.0)	%	(0.4)	%
Operating income	11.8	%	7.5	%	7.8	%	8.3	%
Equity income in unconsolidated joint ventures	0.3	%	0.5	%	0.2	%	0.6	%
Other income (expense), net	0.3	%	0.3	%	—	%	0.1	%
Interest expense, net	(1.0)	%	(1.2)	%	(1.2)	%	(0.7)	%
Income before income taxes	11.4	%	7.1	%	6.8	%	8.3	%
Income tax expense (benefit)	3.1	%	1.1	%	2.1	%	1.7	%
Net income	8.3	%	6.0	%	4.7	%	6.6	%

Net Sales and Gross Margin
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Net sales	$	229,148		$	247,231		$	703,816		$	747,467
Gross margin	$	80,360		$	78,064		$	239,678		$	249,976
Percentage of net sales	35.1		%	31.6		%	34.1		%	33.4		%

Net sales decreased by 7.3% in the third quarter of 2023 compared to the third quarter of 2022. Our AES and EMS operating segments had net sales decreases of 3.2% and 11.7%, respectively. The decrease in net sales was primarily due to lower net sales in the EV/HEV, aerospace and defense, portable electronics and wireless infrastructure markets in our AES operating segment and lower net sales in the general industrial, consumer and portable electronics markets in our EMS operating segment. The decrease was partially offset by higher net sales in the renewable energy, ADAS and general industrial markets in our AES operating segment and higher net sales in the aerospace and defense market in our EMS operating segment. Net sales were favorably impacted by foreign currency impacts of $1.9 million, or 0.8%, due to the appreciation in value of the euro relative to the U.S. dollar, partially offset by the depreciation in value of the Chinese renminbi relative to the U.S. dollar.

Net sales decreased by 5.8% in the first nine months of 2023 compared to the first nine months of 2022. Our AES and EMS operating segments had net sales decreases of 3.1% and 9.4%, respectively. The decrease in net sales was primarily due to lower net sales in the wireless infrastructure, aerospace and defense, EV/HEV and portable electronics markets in our AES operating segment and lower net sales in the general industrial, consumer, portable electronics and EV/HEV markets in our EMS operating segment. The decrease was partially offset by higher net sales in the renewable energy and ADAS markets in our AES operating segment and higher net sales in the aerospace and defense market in our EMS operating segment. Net sales were unfavorably impacted by foreign currency impacts of $7.0 million, or 0.9%, due to the depreciation in value of the Chinese renminbi and the British pound relative to the U.S. dollar, partially offset by the appreciation in value of the euro relative to the U.S. dollar.

Gross margin as a percentage of net sales increased approximately 350 basis points to 35.1% in the third quarter of 2023 compared to 31.6% in the third quarter of 2022. Gross margin in the third quarter of 2023 improved due to lower freight, duties and tariffs costs and favorable factory optimization efforts in our AES and EMS operating segments, as well as lower raw material costs in our EMS operating segment. This was partially offset by the unfavorable impacts from lower volume and

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unfavorable mix, as well as unfavorable yield performance in our AES and EMS operating segments, and higher inventory reserves provisions in our EMS operating segment.

Gross margin as a percentage of net sales increased approximately 70 basis points to 34.1% in the first nine months of 2023 compared to 33.4% in the first nine months of 2022. Gross margin in the first nine months of 2023 improved due to lower freight, duties and tariffs costs, lower raw material costs and favorable factory optimization efforts in our AES and EMS operating segments. This was partially offset by lower volume and unfavorable mix, as well as higher inventory reserves provisions and unfavorable yield performance in our AES and EMS operating segments.

Selling, General and Administrative Expenses
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Selling, general and administrative expenses	$	44,336		$	50,653		$	150,549		$	164,496
Percentage of net sales	19.4		%	20.5		%	21.4		%	22.0		%

Selling, general and administrative (SG&A) expenses decreased 12.5% in the third quarter of 2023 from the third quarter of 2022, primarily due to a $3.8 million decrease in professional services, a $1.8 million decrease in total compensation and benefits and a $0.7 million decrease in other intangible asset amortization expense, partially offset by a $0.4 million increase in travel expenses and a $0.2 million increase in fixed asset depreciation expense.

SG&A expenses decreased 8.5% in the first nine months of 2023 from the first nine months of 2022, primarily due to an $11.2 million decrease in total compensation and benefits, a $2.6 million decrease in other intangible asset amortization expense and a $1.1 million decrease in professional services, partially offset by a $0.7 million increase in fixed asset depreciation expense and $0.7 million increase in travel expenses.

The decrease in total compensation and benefits was primarily due to a $0.4 million decrease in the impact for retention awards issued in connection with the terminated DuPont merger, on a quarter-to-date basis, and the $6.5 million discretionary RESIP contribution in 2022 and a $1.5 million decrease in the impact for retention awards issued in connection with the terminated DuPont merger on a year-to-date basis. The decrease in professional services expense on a quarter-to-date basis was due to a $1.5 million decrease in expenses incurred related to the terminated merger with DuPont, a $0.1 million decrease in expenses incurred related to our acquisition of Silicone Engineering as well as an overall general reduction of professional service expenses across general and administrative departments. The decrease in professional services expense on a year-to-date basis was due to a $5.4 million decrease in expenses incurred related to the terminated merger with DuPont, a $0.6 million decrease in expenses incurred related to our acquisition of Silicone Engineering as well as an overall general reduction of professional service expenses across general and administrative departments, partially offset by $7.6 million of expenses related to non-routine shareholder advisory costs and $1.1 million of expenses in connection with the sale of our high-performance engineered cellular elastomer business.

Research and Development Expenses
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Research and development expenses	$	7,827		$	9,140		$	25,511		$	25,450
Percentage of net sales	3.4		%	3.7		%	3.6		%	3.4		%

R&D expenses decreased 14.4% in the third quarter of 2023 from the third quarter of 2022 due to a decrease in trial costs for alternative raw materials, a decrease in professional services and a decrease in total compensation and benefits expense.

R&D expenses increased 0.2% in the first nine months of 2023 from the first nine months of 2022 due to an increase in trial costs for alternative raw materials, partially offset by a decrease in professional services and a decrease in total compensation and benefits expense.

Restructuring and Impairment Charges and Other Operating (Income) Expense, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119
Other operating (income) expense, net	$	(846)	$	(578)	$	(7,507)	$	(2,852)

We incurred restructuring charges and related expenses associated with the announced reduction in force plan of our global workforce along with certain facility consolidation efforts, which were substantially completed as of September 30, 2023. The plans are expected to significantly reduce our manufacturing costs and operating expenses. We recognized restructuring charges

28

and related expenses pertaining to these restructuring projects of $1.9 million in the third quarter of 2023 and $16.4 million in the first nine months of 2023. For additional information, refer to “Note 15 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

With respect to other operating (income) expense, net, we recognized income of $0.8 million and income of $0.6 million in the third quarter of 2023 and 2022, respectively, and income of $7.5 million and income of $2.9 million in the first nine months of 2023 and 2022, respectively. The impact in the third quarter of 2023 and 2022 and the first nine months of 2023 and 2022, primarily consisted of insurance recoveries, partially offset by professional service costs, compensation and benefits for certain of our UTIS employees, costs incurred under our manufacturing facility lease agreement and inventory charges. For additional information, refer to “Note 15 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Equity Income in Unconsolidated Joint Ventures
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Equity income in unconsolidated joint ventures	$	641	$	1,162	$	1,559	$	4,237

As of September 30, 2023, 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 44.8% in the third quarter of 2023 from the third quarter of 2022, and decreased 63.2% in the first nine months of 2023 from the first nine months of 2022. On quarter-to-date and year-to-date bases, the decrease was due to lower net sales for RIC and RIS. The lower net sales for both RIC and RIS was primarily driven by the portable electronics market in Asia.

Other Income (Expense), Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Other income (expense), net	$	761	$	977	$	9	$	1,563

Other income (expense), net decreased to income of $0.8 million in the third quarter of 2023 from income of $1.0 million in the third quarter of 2022. On a quarter-to-date basis, the decrease was due to the unfavorable impacts from our foreign currency transactions, partially offset by favorable impacts from our foreign currency derivatives.

Other income (expense), net decreased to income of less than $0.1 million in the first nine months of 2023 from income of $1.6 million in the first nine months of 2022. On a year-to-date basis, the decrease was due to unfavorable impacts from our foreign currency transactions, partially offset by favorable impacts from our foreign currency derivatives and the favorable impacts from our copper derivative contracts.

Interest Expense, Net
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Interest expense, net	$	(2,328)	$	(2,942)	$	(8,627)	$	(5,559)

Interest expense, net, decreased by $0.6 million in the third quarter of 2023 from the third quarter of 2022, and increased by $3.1 million in the first nine months of 2023 from the first nine months of 2022. The decrease on a quarter-to-date basis was primarily due to a lower weighted-average outstanding balance, partially offset by a higher weighted-average interest rate. The increase on a year-to-date basis was primarily due to a higher weighted-average interest rate, partially offset by a lower weighted-average outstanding balance.

Income Taxes
	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Income tax expense (benefit)	$	7,161		$	2,835		$	14,311		$	12,683
Effective tax rate	27.3		%	16.0		%	30.0		%	20.5		%

Our effective income tax rate was 27.3% and 16.0% for the three months ended September 30, 2023 and 2022, respectively. The increase from the third quarter of 2022 was primarily due to the third quarter 2022 decrease in uncertain tax positions that did not recur in 2023. Our effective income tax rate was 30.0% and 20.5% for the nine months ended September 30, 2023 and 2022, respectively. The increase from the third quarter of 2022 was primarily due to the third quarter 2022 decrease in reserves for uncertain tax positions that did not recur in 2023.

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Operating Segment Net Sales and Operating Income

Advanced Electronics Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net sales	$	126,400	$	130,608	$	392,440	$	404,926
Operating income	$	5,674	$	2,263	$	6,001	$	12,342

AES net sales decreased by 3.2% in the third quarter of 2023 compared to the third quarter of 2022. The decrease in net sales over the third quarter of 2022 was primarily driven by lower net sales in the EV/HEV, wireless infrastructure, aerospace and defense and portable electronics markets, partially offset by higher net sales in the renewable energy, ADAS and general industrial markets. Net sales were favorably impacted by foreign currency fluctuations of $2.6 million, or 2.0%, due to the appreciation in value of the euro relative to the U.S dollar, partially offset by the depreciation in value of the Chinese renminbi relative to the U.S. dollar.

AES net sales decreased by 3.1% in the first nine months of 2023 compared to the first nine months of 2022. The decrease in net sales over the first nine months of 2022 was primarily driven by lower net sales in the wireless infrastructure, aerospace and defense and portable electronics markets, partially offset by higher net sales in the renewable energy and ADAS markets. Net sales were unfavorably impacted by foreign currency fluctuations of $2.3 million, or 0.6%, due to the depreciation in value of Chinese renminbi relative to the U.S. dollar, partially offset by the appreciation in value of the euro relative to the U.S. dollar.

We recognized operating income of $5.7 million in the third quarter of 2023 compared to operating income of $2.3 million in the third quarter of 2022. The increase in operating income was primarily due to a year-over-year decrease in costs related to the terminated DuPont merger, partially offset by unfavorable year-over-year changes in restructuring charges. The increase in operating income was also due to lower freight, duties and tariffs costs and favorable factory optimization efforts. This was partially offset by lower volume and unfavorable mix, as well as unfavorable yield performance. As a percentage of net sales, the operating income in the third quarter of 2023 was 4.5% compared to 1.7% of operating income reported in the third quarter of 2022.

We recognized operating income of $6.0 million in the first nine months of 2023 compared to operating income of $12.3 million in the first nine months of 2022. The decrease in operating income was primarily due to unfavorable year-over-year changes in restructuring charges and shared service operating expense allocations driven by non-routine shareholder advisory costs, partially offset by a year-over-year decrease in costs related to the terminated DuPont merger. The decrease in operating income was also due to lower volume and unfavorable mix, as well as unfavorable yield performance and higher inventory reserves provisions. This was partially offset by lower freight, duties and tariffs costs, lower raw material costs and favorable factory optimization efforts. As a percentage of net sales, operating income in the first nine months of 2023 was 1.5% compared to 3.0% of operating income reported in the first nine months of 2022.

Elastomeric Material Solutions

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net sales	$	97,986	$	110,983	$	295,576	$	326,313
Operating income	$	19,851	$	14,322	$	43,293	$	43,920

EMS net sales decreased by 11.7% in the third quarter of 2023 compared to the third quarter of 2022. The decrease in net sales over the third quarter of 2022 was primarily driven by lower net sales in the general industrial, consumer and portable electronics markets, partially offset by higher net sales in the aerospace and defense market. Net sales were unfavorably impacted by foreign currency fluctuations of $0.5 million, or 0.5%, due to the depreciation in value of the Chinese renminbi relative to the U.S. dollar, partially offset by the appreciation in value of the euro relative to the U.S. dollar.

EMS net sales decreased by 9.4% in the first nine months of 2023 compared to the first nine months of 2022. The decrease in net sales over the first nine months of 2022 was primarily driven by lower net sales in the general industrial, consumer, portable electronics and EV/HEV markets, partially offset by higher net sales in the aerospace and defense market. Net sales were unfavorably impacted by foreign currency fluctuations of $4.2 million, or 1.3%, due to the depreciation in value of Chinese renminbi and the British pound relative to the U.S. dollar.

We recognized operating income of $19.9 million in the third quarter of 2023 compared to operating income of $14.3 million in the third quarter of 2022. The increase in operating income was primarily due to a year-over-year decrease in costs related to the terminated DuPont merger, partially offset by unfavorable year-over-year changes in restructuring charges. The increase in operating income was also due to lower freight, duties and tariffs costs, favorable factory optimization efforts and lower raw

30

material costs. This was partially offset by lower volume, as well as unfavorable yield performance and higher inventory reserves provisions. As a percentage of net sales, operating income in the third quarter of 2023 was 20.3% compared to 12.9% reported in the third quarter of 2022.

We recognized operating income of $43.3 million in the first nine months of 2023 compared to operating income of $43.9 million in the first nine months of 2022. The decrease in operating income was primarily due to unfavorable year-over-year changes in restructuring charges and shared service operating expense allocations driven by non-routine shareholder advisory costs, partially offset by a year-over-year decrease in costs related to the terminated DuPont merger. The decrease in operating income was also due to lower volume, as well as unfavorable yield performance and higher inventory reserves provisions. This was partially offset by lower freight, duties and tariffs costs, lower raw material costs and favorable factory optimization efforts, in addition to a $4.0 million favorable change in charges/benefits related to the UTIS fire. As a percentage of net sales, operating income in the first nine months of 2023 was 14.6% compared to 13.5% reported in the first nine months of 2022.

Other

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net sales	$	4,762	$	5,640	$	15,800	$	16,228
Operating income	$	1,597	$	1,891	$	5,470	$	5,501

Net sales in this segment decreased by 15.6% in the third quarter of 2023 from the third quarter of 2022. Operating income decreased 15.5% in the third quarter of 2023 compared to the third quarter of 2022. The decrease in operating income was primarily driven by lower volume and unfavorable factory utilization. As a percentage of net sales, operating income was 33.5% in both the third quarter of 2023 and the third quarter of 2022.

Net sales in this segment decreased by 2.6% in the first nine months of 2023 from the first nine months of 2022. Operating income decreased 0.6% in the first nine months of 2023 compared to the first nine months of 2022. The decrease in operating income was primarily driven by lower volume, unfavorable factory utilization and higher inventory reserves provisions, partially offset by lower freight, duties and tariffs costs. As a percentage of net sales, operating income in the first nine months of 2023 was 34.6% compared to 33.9% in the first nine months of 2022.

Liquidity, Capital Resources and Financial Position

We believe that our existing sources of liquidity and cash flows that we expect to generate 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 in an effort 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:

(Dollars in thousands)	September 30, 2023		December 31, 2022
United States	$	44,378	$	119,931
Europe	33,525		69,877
Asia	48,552		46,042
Total cash and cash equivalents	$	126,455	$	235,850

Approximately $82.1 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of September 30, 2023. We did not make any changes in the nine months ended September 30, 2023 to our position on the permanent reinvestment of our 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.

(Dollars in thousands)	September 30, 2023		December 31, 2022
Key Financial Position Accounts:
Cash and cash equivalents	$	126,455	$	235,850
Accounts receivable, net	$	185,750	$	177,413
Inventories	$	157,073	$	182,402
Borrowings under revolving credit facility	$	80,000	$	215,000

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Changes in key financial position accounts and other significant changes in our statements of financial position from December 31, 2022 to September 30, 2023 were as follows:

•Cash and cash equivalents were $126.5 million as compared to $235.9 million as of December 31, 2022, a decrease of $109.4 million, or 46.4%. This decrease was primarily due to $135.0 million in discretionary principal payments on our revolving credit facility, $34.5 million in capital expenditures and $2.5 million in tax payments related to net share settlement of equity awards, partially offset by cash flows provided by operations.

•Accounts receivable, net increased 4.7% to $185.8 million as of September 30, 2023 from $177.4 million as of December 31, 2022. The increase from year-end was primarily due to higher net sales at the end of the third quarter of 2023 compared to at the end of 2022, partially offset by a $5.3 million decrease in our income taxes receivable.

•Inventories decreased 13.9% to $157.1 million as of September 30, 2023, from $182.4 million as of December 31, 2022, primarily driven by a reduction in finished goods stock as well as higher inventory reserves provisions.

•Borrowings under revolving credit facility were $80.0 million as of September 30, 2023 compared to $215.0 million as of December 31, 2022. This decrease was due to $135.0 million in discretionary principal payments on our revolving credit facility made in the first nine months of 2023. For additional information regarding this facility and the Fifth Amended Credit Agreement, refer to “Note 9 – Debt” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

	Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022
Key Cash Flow Measures:
Net cash provided by operating activities	$	59,522	$	1,834
Net cash used in investing activities	$	(30,346)	$	(81,048)
Net cash provided by (used in) financing activities	$	(139,612)	$	89,997

In 2023, we expect capital spending to be in the range of approximately $55.0 million to $65.0 million. We plan to fund our capital spending in 2023 with cash from operations and cash on-hand, as well as our existing revolving credit facility, if necessary.

Restrictions on Payment of Dividends

The Fifth 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 September 30, 2023.

Contingencies

During the third quarter of 2023, we did not become aware of any material developments related to environmental matters disclosed in our Annual Report, our asbestos litigation or other material contingencies previously disclosed or incur any material costs or capital expenditures related to such matters. Refer to “Note 12 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for further discussion of these contingencies.

Critical Accounting Policies

There were no material changes in our critical accounting policies during the third quarter of 2023.

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Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our exposure to market risk during the third quarter of 2023. For discussion of our exposure to market risk, refer to “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” contained in our Annual Report.

Item 4.    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 September 30, 2023. 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 September 30, 2023.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company’s internal control over financial reporting during its most recently completed fiscal quarter that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act.

33

Part II - Other Information

Item 1.    Legal Proceedings

Refer to the discussion of certain environmental, asbestos and other litigation matters in “Note 12 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Item 5. Other Information

During the three months ended September 30, 2023, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement”, as each term is defined in Item 408 of Regulation S-K.

Item 6.    Exhibits

List of Exhibits:
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 August 9, 2023, incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on August 15, 2023.
10.1	Fifth Amended and Restated Credit Agreement, dated as of March 24, 2023, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on March 29, 2023.
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 and Chief Financial Officer (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 and Chief Financial Officer (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, furnished herewith.
101	The following materials from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and September 30, 2022, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023 and September 30, 2022, (iii) Condensed Consolidated Statements of Financial Position as of September 30, 2023 and December 31, 2022, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and September 30, 2022, (v) Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2023 and September 30, 2022, (vi) Notes to Condensed Consolidated Financial Statements and (vii) Cover Page.
104	The cover page from Rogers Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023, formatted in iXBRL and contained in Exhibit 101.

34

Signatures

Pursuant to the requirements 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/ Ramakumar Mayampurath

Ramakumar Mayampurath

Senior Vice President, Chief Financial Officer and Treasurer

Principal Financial Officer

Dated: October 26, 2023

35

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, R. Colin Gouveia, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q 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 most recent 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: October 26, 2023

/s/ R. Colin Gouveia

R. Colin Gouveia

President and Chief Executive Officer
Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Ramakumar Mayampurath, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q 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 most recent 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: October 26, 2023

/s/ Ramakumar Mayampurath

Ramakumar Mayampurath

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 Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 (the “Form 10-Q”) 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-Q fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ R. Colin Gouveia

R. Colin Gouveia

President and Chief Executive Officer
Principal Executive Officer

October 26, 2023

/s/ Ramakumar Mayampurath

Ramakumar Mayampurath

Senior Vice President, Chief Financial Officer and Treasurer

Principal Financial Officer

October 26, 2023

XML

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 23, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,616,519
Entity Central Index Key	0000084748
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 229,148	$ 247,231	$ 703,816	$ 747,467
Cost of sales	148,788	169,167	464,138	497,491
Gross margin	80,360	78,064	239,678	249,976
Selling, general and administrative expenses	44,336	50,653	150,549	164,496
Research and development expenses	7,827	9,140	25,511	25,450
Restructuring and impairment charges	1,921	373	16,361	1,119
Other operating (income) expense, net	(846)	(578)	(7,507)	(2,852)
Operating income	27,122	18,476	54,764	61,763
Equity income in unconsolidated joint ventures	641	1,162	1,559	4,237
Other income (expense), net	761	977	9	1,563
Interest expense, net	(2,328)	(2,942)	(8,627)	(5,559)
Income before income taxes	26,196	17,673	47,705	62,004
Income tax expense (benefit)	7,161	2,835	14,311	12,683
Net income	$ 19,035	$ 14,838	$ 33,394	$ 49,321
Basic earnings per share (in dollars per share)	$ 1.02	$ 0.79	$ 1.79	$ 2.62
Diluted earnings per share (in dollars per share)	$ 1.02	$ 0.78	$ 1.79	$ 2.60
Shares used in computing:
Basic earnings per share (in shares)	18,627	18,818	18,619	18,804
Diluted earnings per share (in shares)	18,685	18,999	18,668	18,997

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 19,035	$ 14,838	$ 33,394	$ 49,321
Foreign currency translation adjustment	(17,906)	(35,035)	(3,860)	(80,383)
Pension and other postretirement benefits:
Actuarial net loss incurred, net of tax (Note 4)	0	0	0	(15)
Amortization of loss, net of tax (Note 4)	93	87	280	260
Other comprehensive income (loss)	(17,813)	(34,948)	(3,580)	(80,138)
Comprehensive income (loss)	$ 1,222	$ (20,110)	$ 29,814	$ (30,817)

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 126,455	$ 235,850
Accounts receivable, less allowance for credit losses of $1,147 and $1,007	185,750	177,413
Contract assets	46,476	38,853
Inventories	157,073	182,402
Prepaid income taxes	3,337	4,042
Asbestos-related insurance receivables, current portion	3,881	3,881
Other current assets	31,825	17,426
Total current assets	554,797	659,867
Property, plant and equipment, net of accumulated depreciation of $391,898 and $381,584	341,696	358,415
Investments in unconsolidated joint ventures	10,346	14,082
Deferred income taxes	58,922	50,649
Goodwill	352,214	352,365
Other intangible assets, net of amortization	124,496	133,724
Pension assets	5,523	5,251
Asbestos-related insurance receivables, non-current portion	55,926	55,926
Other long-term assets	16,946	15,935
Total assets	1,520,866	1,646,214
Current liabilities
Accounts payable	46,852	57,342
Accrued employee benefits and compensation	33,778	34,158
Accrued income taxes payable	7,018	5,504
Asbestos-related liabilities, current portion	4,968	4,968
Finance lease obligations, current portion	345	498
Other accrued liabilities	23,176	40,067
Total current liabilities	116,137	142,537
Borrowings under revolving credit facility	80,000	215,000
Pension and other postretirement benefits liabilities	1,618	1,501
Asbestos-related liabilities, non-current portion	59,739	60,065
Finance lease obligations, non-current portion	1,147	1,295
Non-current income tax	9,560	9,985
Deferred income taxes	23,720	23,557
Other long-term liabilities	18,333	19,808
Commitments and contingencies (Note 10 and Note 12)
Shareholders’ equity
Capital stock - $1 par value; 50,000 authorized shares; 18,616 and 18,574 shares issued and outstanding	18,616	18,574
Additional paid-in capital	148,992	140,702
Retained earnings	1,131,848	1,098,454
Accumulated other comprehensive loss	(88,844)	(85,264)
Total shareholders' equity	1,210,612	1,172,466
Total liabilities and shareholders' equity	$ 1,520,866	$ 1,646,214
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other long-term assets	Other long-term assets
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,147	$ 1,007
Property, plant and equipment, accumulated depreciation	$ 391,898	$ 381,584
Capital Stock, par value (in dollars per share)	$ 1	$ 1
Capital Stock, authorized shares (in shares)	50,000	50,000
Capital Stock, shares issued (in shares)	18,616	18,574
Capital Stock, shares outstanding (in shares)	18,616	18,574

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating Activities:
Net income	$ 33,394	$ 49,321
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	39,823	34,352
Equity compensation expense	10,874	11,576
Deferred income taxes	(8,297)	(14,076)
Equity in undistributed income of unconsolidated joint ventures	(1,559)	(4,237)
Dividends received from unconsolidated joint ventures	4,254	4,677
Pension and other postretirement benefits	205	23
Gain on sale of business	(704)	0
(Gain) loss on sale or disposal of property, plant and equipment	(679)	(15)
Impairment charges	0	212
UTIS fire fixed asset and inventory write-offs	0	199
Provision (benefit) for credit losses	124	331
Changes in assets and liabilities:
Accounts receivable	(17,531)	(23,759)
Proceeds from insurance/government subsidies related to operations	5,705	1,153
Contract assets	(8,635)	(9,320)
Inventories	22,427	(47,500)
Pension and postretirement benefit contributions	(9)	(141)
Other current assets	2,075	(4,919)
Accounts payable and other accrued expenses	(20,205)	(12,083)
Other, net	(1,740)	16,040
Net cash provided by operating activities	59,522	1,834
Investing Activities:
Acquisition of business, net of cash received	0	(1,300)
Disposition of business	1,693	0
Capital expenditures	(34,539)	(87,000)
Proceeds from the sale of property, plant and equipment, net	745	7,252
Proceeds from insurance claims	1,755	0
Net cash used in investing activities	(30,346)	(81,048)
Financing Activities:
Proceeds from borrowings under revolving credit facility	0	100,000
Repayment of debt principal and finance lease obligations	(135,328)	(202)
Line of credit issuance costs	(1,742)	0
Payments of taxes related to net share settlement of equity awards	(2,542)	(10,751)
Proceeds from issuance of shares to employee stock purchase plan	0	950
Net cash provided by (used in) financing activities	(139,612)	89,997
Effect of exchange rate fluctuations on cash	1,041	(6,618)
Net increase (decrease) in cash and cash equivalents	(109,395)	4,165
Cash and cash equivalents at beginning of period	235,850	232,296
Cash and cash equivalents at end of period	126,455	236,461
Supplemental Disclosures:
Accrued capital additions	2,493	9,330
Interest, net of amounts capitalized	8,851	5,491
Income taxes	$ 6,261	$ 19,617

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Capital Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance, beginning of period at Dec. 31, 2021		$ 18,730	$ 163,583	$ 981,825	$ (45,243)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		69	(10,820)
Shares issued for employee stock purchase plan		6	944
Shares issued to directors		7	(7)
Equity compensation expense			11,576
Net income	$ 49,321			49,321
Other comprehensive income (loss)	(80,138)				(80,138)
Balance, end of period at Sep. 30, 2022	1,089,853	18,812	165,276	1,031,146	(125,381)
Balance, beginning of period at Jun. 30, 2022		18,811	161,885	1,016,308	(90,433)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		1	(129)
Shares issued for employee stock purchase plan		0	0
Shares issued to directors		0	0
Equity compensation expense			3,520
Net income	14,838			14,838
Other comprehensive income (loss)	(34,948)				(34,948)
Balance, end of period at Sep. 30, 2022	1,089,853	18,812	165,276	1,031,146	(125,381)
Balance, beginning of period at Dec. 31, 2022	1,172,466	18,574	140,702	1,098,454	(85,264)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		35	(2,577)
Shares issued for employee stock purchase plan		0	0
Shares issued to directors		7	(7)
Equity compensation expense			10,874
Net income	33,394			33,394
Other comprehensive income (loss)	(3,580)				(3,580)
Balance, end of period at Sep. 30, 2023	1,210,612	18,616	148,992	1,131,848	(88,844)
Balance, beginning of period at Jun. 30, 2023		18,616	145,219	1,112,813	(71,031)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for vested restricted stock units, net of shares withheld for taxes		0	(29)
Shares issued for employee stock purchase plan		0	0
Shares issued to directors		0	0
Equity compensation expense			3,802
Net income	19,035			19,035
Other comprehensive income (loss)	(17,813)				(17,813)
Balance, end of period at Sep. 30, 2023	$ 1,210,612	$ 18,616	$ 148,992	$ 1,131,848	$ (88,844)

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Basis of Presentation

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

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.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the accompanying condensed consolidated financial statements include all normal recurring adjustments necessary for their fair presentation in accordance with GAAP. All significant intercompany balances and transactions have been eliminated.

Interim results are not necessarily indicative of results for a full year. For further information regarding our accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The accounting guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value:

•Level 1 – Quoted prices in active markets for identical assets or liabilities.

•Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts and copper derivative contracts. Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Derivative Instruments at Fair Value as of September 30, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(53)	$	—	$	(53)
Copper derivative contracts	$	—	$	299	$	—	$	299

	Derivative Instruments at Fair Value as of December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(82)	$	—	$	(82)
Copper derivative contracts	$	—	$	500	$	—	$	500

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position.

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

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Hedging Transactions and Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Transactions and Derivative Financial Instruments

Hedging Transactions and Derivative Financial Instruments

We are exposed to certain risks related to our ongoing business operations. The primary risks being managed through our use of derivative instruments are foreign currency exchange rate risk and commodity pricing risk (primarily related to copper). We do not use derivative instruments for trading or speculative purposes. The valuation of derivative contracts used to manage each of foreign currency and commodity 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.

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 condensed consolidated 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) in the condensed consolidated statements of comprehensive income (loss). This gain or loss is reclassified into earnings in the same line item of the condensed consolidated statements of operations associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings.

Foreign Currency

During the three months ended September 30, 2023, 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 condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2023, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	18,999,562
EUR/USD	€	10,440,705
KRW/USD	₩	3,994,650,000
JPY/EUR	¥	50,000,000

Commodity

As of September 30, 2023, we had 12 outstanding contracts to hedge exposure related to the purchase of copper in our AES operating segment. 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 condensed consolidated statements of operations in the period in which the adjustment occurred.

As of September 30, 2023, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2023 - December 2023	69 metric tons per month
January 2024 - March 2024	69 metric tons per month
April 2024 - June 2024	69 metric tons per month
July 2024 - September 2024	69 metric tons per month

Effects on Financial Statements

The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows:

		Three Months Ended				Nine Months Ended
(Dollars in thousands)	Financial Statement Line Item	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	268	$	(101)	$	1,103	$	(1,019)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(182)	$	(171)	$	(602)	$	(969)

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Total
Balance as of December 31, 2022	$	(75,575)	$	(9,689)	$	(85,264)
Other comprehensive income (loss) before reclassifications	(3,860)		—		(3,860)
Amounts reclassified from accumulated other comprehensive loss	—		280		280
Net current-period other comprehensive income (loss)	(3,860)		280		(3,580)
Balance as of September 30, 2023	$	(79,435)	$	(9,409)	$	(88,844)
Balance as of December 31, 2021	$	(35,641)	$	(9,602)	$	(45,243)
Other comprehensive income (loss) before reclassifications	(80,383)		(15)		(80,398)
Amounts reclassified from accumulated other comprehensive loss	—		260		260
Net current-period other comprehensive income (loss)	(80,383)		245		(80,138)
Balance as of September 30, 2022	$	(116,024)	$	(9,357)	$	(125,381)

(1) Net of taxes of $1,846 and $1,926 as of September 30, 2023 and December 31, 2022, respectively. Net of taxes of $2,056 and $2,125 as of September 30, 2022 and December 31, 2021, respectively.

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Inventories

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories, which are valued at the lower of cost or net realizable value, consisted of the following:

(Dollars in thousands)	September 30, 2023		December 31, 2022
Raw materials	$	71,133	$	87,851
Work-in-process	48,377		45,100
Finished goods	37,563		49,451
Total inventories	$	157,073	$	182,402

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the net carrying amount of goodwill by operating segment were as follows:

(Dollars in thousands)	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
December 31, 2022	$	115,352	$	234,789	$	2,224	$	352,365
Foreign currency translation adjustment	(520)		369		—		$	(151)
September 30, 2023	$	114,832	$	235,158	$	2,224	$	352,214

Other Intangible Assets

The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows:

	September 30, 2023						December 31, 2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	175,214	$	87,232	$	87,982	$	178,605	$	85,569	$	93,036
Technology	75,898		55,788		20,110		82,349		59,052		23,297
Trademarks and trade names	18,840		7,040		11,800		19,098		6,639		12,459
Covenants not to compete	1,479		1,051		428		1,919		1,199		720
Total definite-lived other intangible assets	271,431		151,111		120,320		281,971		152,459		129,512
Indefinite-lived other intangible asset	4,176		—		4,176		4,212		—		4,212
Total other intangible assets	$	275,607	$	151,111	$	124,496	$	286,183	$	152,459	$	133,724

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

Amortization expense was $3.4 million and $4.1 million for the three months ended September 30, 2023 and 2022, respectively, and $10.0 million and $12.6 million for the nine months ended September 30, 2023 and 2022, respectively. The estimated future amortization expense is $3.3 million for the remainder of 2023 and $12.2 million, $10.6 million, $10.2 million and $9.9 million for 2024, 2025, 2026 and 2027, respectively.

The weighted average amortization period as of September 30, 2023, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	7.5 years
Technology	3.4 years
Trademarks and trade names	10.0 years
Covenants not to compete	0.6 years
Total definite-lived other intangible assets	7.0 years

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Earnings Per Share

9 Months Ended

Sep. 30, 2023

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:

(Dollars and shares in thousands, except per share amounts)	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator:
Net income	$	19,035	$	14,838	$	33,394	$	49,321
Denominator:
Weighted-average shares outstanding - basic	18,627		18,818		18,619		18,804
Effect of dilutive shares	58		181		49		193
Weighted-average shares outstanding - diluted	18,685		18,999		18,668		18,997
Basic earnings per share	$	1.02	$	0.79	$	1.79	$	2.62
Diluted earnings per share	$	1.02	$	0.78	$	1.79	$	2.60

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 the three months ended September 30, 2023 and 2022, 8,000 shares and no shares were excluded, respectively.

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Capital Stock and Equity Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Capital Stock and Equity Compensation

Capital Stock and Equity Compensation

Equity Compensation

Performance-Based Restricted Stock Units

As of September 30, 2023, we had performance-based restricted stock units from 2023 and 2021 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 criterion: 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 criterion of the awards is considered a market condition. As such, the fair value of this measurement criterion 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.

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2023:

	February 9, 2023
Expected volatility	53.2%
Expected term (in years)	2.9
Risk-free interest rate	4.08%

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 the nine months ended September 30, 2023 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2022	65,513
Awards granted	50,551
Stock issued	(8,775)
Awards cancelled	(31,943)
Awards outstanding as of September 30, 2023	75,346

We recognized $1.3 million and $1.1 million of compensation expense for performance-based restricted stock units for the three months ended September 30, 2023 and 2022, respectively. We recognized $2.6 million and $3.3 million of compensation expense for performance-based restricted stock units for the nine months ended September 30, 2023 and 2022, respectively.

Time-Based Restricted Stock Units

As of September 30, 2023, we had time-based restricted stock unit awards from 2023, 2022, 2021 and 2020 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 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 the nine months ended September 30, 2023 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2022	124,284
Awards granted	67,094
Stock issued	(43,254)
Awards cancelled	(24,296)
Awards outstanding as of September 30, 2023	123,828

We recognized $2.5 million and $2.4 million of compensation expense for time-based restricted stock units for the three months ended September 30, 2023 and 2022, respectively. We recognized $7.1 million and $7.0 million of compensation expense for time-based restricted stock units for the nine months ended September 30, 2023 and 2022, respectively.

Deferred Stock Units

We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 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 the nine months ended September 30, 2023 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2022	6,850
Awards granted	8,100
Stock issued	(6,850)
Awards outstanding as of September 30, 2023	8,100

We recognized no compensation expense for deferred stock units for the three months ended September 30, 2023 and 2022, respectively. We recognized $1.2 million and $1.3 million of compensation expense for the nine months ended September 30, 2023, and 2022, respectively.

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Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

In October 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 amended and restated the Third Amended Credit Agreement, and provided 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 could have been 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 extended the maturity, the date on which all amounts borrowed or outstanding under the Fourth Amended Credit Agreement were due, from February 17, 2022 to March 31, 2024.

All obligations under the Fourth Amended Credit Agreement were guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fourth Amended Credit Agreement (the Previous Guarantors). The obligations were also secured by a Fourth Amended and Restated Pledge and Security Agreement, dated as of October 16, 2020, entered into by us and the Previous Guarantors which granted to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of our and the Previous Guarantors’ non-real estate assets. These assets included, but were not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

On March 5, 2021, the U.K. Financial Conduct Authority (FCA) publicly announced that immediately after December 31, 2021, publication of most Euro, Swiss Franc, Japanese Yen and Pound Sterling LIBOR settings will permanently cease. On October 15, 2021, Rogers Corporation and JPMorgan Chase Bank, N.A. entered into an amendment (Amendment No. 1) to the Fourth Amended Credit Agreement to adopt a new benchmark interest rate to replace the discontinued LIBOR reference rates.

Borrowings under the Fourth Amended Credit Agreement could have been made as alternate base rate loans, euro-currency loans, or RFR loans. Alternate base rate loans bore 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 was 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 bore interest based on adjusted LIBOR plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio. RFR loans bore interest based upon the Sterling Overnight Index Average (SONIA) plus 0.0326% plus a spread of 162.5 to 200.0 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding, we incurred an annual fee of 25 to 35 basis points (based upon our leverage ratio), paid quarterly, of the unused amount of the lenders’ commitments under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement contained customary representations and warranties, covenants, mandatory prepayments and events of default under which our payment obligations may be accelerated. If an event of default occurred, the lenders may 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 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 were 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 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 have resulted from the dividend payment and (ii) our total net leverage ratio did not exceed 2.75 to 1.00. If our total net leverage ratio exceeded 2.75 to 1.00, we may have nonetheless made 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 have resulted from the payments.

On March 24, 2023, we entered into a Fifth Amended and Restated Credit Agreement (the Fifth Amended Credit Agreement) with each of the lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent, and HSBC Bank USA, National Association, Wells Fargo Bank, National Association, Citibank, N.A. and Citizens Bank, N.A. as Co-Syndication Agents. The Fifth Amended Credit Agreement amends and restates the Fourth Amended Credit Agreement, and provides for (1) a revolving credit facility with up to $450.0 million of revolving loans, with sub-limits for multicurrency borrowings, letters of credit and swing-line notes, and (2) a $225.0 million expansion 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 Fifth Amended Credit Agreement). The Fifth Amended Credit Agreement extends the maturity, the date on which all amounts borrowed or outstanding under the Fifth Amended Credit Agreement are due, from March 31, 2024 to March 24, 2028.

All obligations under the Fifth Amended Credit Agreement are guaranteed by each of our existing and future material domestic subsidiaries, as defined in the Fifth Amended Credit Agreement (the Guarantors). The obligations are also secured by a Fifth Amended and Restated Pledge and Security Agreement, dated as of March 24, 2023, entered into by us and the Guarantors which grants to the administrative agent, for the benefit of the lenders, a security interest, subject to certain exceptions, in substantially all of the non-real estate assets of ours and the Guarantors. These assets include, but are not limited to, receivables, equipment, intellectual property, inventory, and stock in certain subsidiaries.

Borrowings under the Fifth Amended Credit Agreement bear interest based on one of two options. Alternate base rate loans will bear interest at a rate that includes a base reference rate plus a spread of 62.5 to 100.0 basis points, depending on our leverage ratio. The base reference rate will be the greater of the (1) prime rate, (2) federal funds effective rate plus 50 basis points, and (3) one-month Term Secured Overnight Financial Rate (SOFR) plus 110 basis points. Loans bearing an interest rate determined by reference to the Adjusted Term SOFR Rate, the Adjusted Euro Interbank Offered Rate (EURIBOR), or the Adjusted (Tokyo Interbank Offered Rate (TIBOR) (each as defined in the Fifth Amended Credit Agreement) will bear interest based on the screen rate plus a spread of 162.5 to 200.0 basis points, depending on our leverage ratio. Based on our leverage ratio as of September 30, 2023, the spread was 162.5 basis points.

In addition to interest payable on the principal amount of indebtedness outstanding, we incur an annual fee of 25 to 35 basis points (based upon our leverage ratio), paid quarterly, of the unused amount of the lenders’ commitments under the Fifth Amended Credit Agreement.

The Fifth Amended Credit Agreement contains customary representations and warranties, covenants, mandatory prepayments and events of default under which the Company’s payment obligations may be accelerated. The financial covenants include a requirement 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 3.75 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 in the calculation of the total net leverage ratio. The Fifth 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 and our interest coverage ratio was greater than or equal to 3.00 to 1.00 as of September 30, 2023.

There were no borrowings under the Fifth Amended Credit Agreement for the three and nine months ended September 30, 2023. There were $30.0 million and $100.0 million in borrowings under the Fourth Amended Credit Agreement for the three and nine months ended September 30, 2022, respectively. We are not required to make any quarterly principal payments under the Fifth Amended Credit Agreement, and we were not required to make any quarterly principal payments under the Fourth Amended Credit Agreement. We made $50.0 million of discretionary principal payments for the three months ended September 30, 2023, and $135.0 million of discretionary principal payments for the nine months ended September 30, 2023. There were no discretionary principal payments made for the three and nine months ended September 30, 2022.

We had $80.0 million outstanding borrowings under our revolving credit facility as of September 30, 2023, and $215.0 million as of December 31, 2022. We had $2.3 million and $0.9 million of outstanding line of credit issuance costs as of September 30, 2023 and December 31, 2022, respectively, which will be amortized over the life of the Fifth Amended Credit Agreement.

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Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Finance Leases

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine- month periods ended September 30, 2023 and 2022. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine- month periods ended September 30, 2023 and 2022.

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:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating leases expense	$	1,004	$	652	$	2,851	$	1,896
Short-term leases expense	$	211	$	168	$	568	$	420
Payments on operating lease obligations	$	871	$	663	$	2,606	$	2,231

Lease Balances in Statements of Financial Position

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

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2023		December 31, 2022
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,477	$	1,749
Operating lease right-of-use assets	Other long-term assets	$	12,487	$	13,013
Finance lease obligations, current portion	Finance lease obligations, current portion	$	345	$	498
Finance lease obligations, non-current portion	Finance lease obligations, non-current portion	$	1,147	$	1,295
Total finance lease obligations		$	1,492	$	1,793
Operating lease obligations, current portion	Other accrued liabilities	$	2,933	$	2,842
Operating lease obligations, non-current portion	Other long-term liabilities	$	9,752	$	10,689
Total operating lease obligations		$	12,685	$	13,531

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 September 30, 2023:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2023	$	103	$	(2)	$	101	$	1,386	$	(204)	$	1,182
2024	415		(11)		404		4,171		(834)		3,337
2025	416		(11)		405		3,537		(860)		2,677
2026	409		(11)		398		2,973		(873)		2,100
2027	205		(11)		194		2,465		(826)		1,639
Thereafter	156		(9)		147		8,896		(4,868)		4,028
Total lease payments	1,704		(55)		1,649		23,428		(8,465)		14,963
Less: Interest	(164)		7		(157)		(4,348)		2,070		(2,278)
Present Value of Net Future Minimum Lease Payments	$	1,540	$	(48)	$	1,492	$	19,080	$	(6,395)	$	12,685

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	4.2 years	5.8 years
Weighted Average Discount Rate	4.07%	4.89%

Leases

Leases

Finance Leases

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine- month periods ended September 30, 2023 and 2022. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine- month periods ended September 30, 2023 and 2022.

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:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating leases expense	$	1,004	$	652	$	2,851	$	1,896
Short-term leases expense	$	211	$	168	$	568	$	420
Payments on operating lease obligations	$	871	$	663	$	2,606	$	2,231

Lease Balances in Statements of Financial Position

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

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2023		December 31, 2022
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,477	$	1,749
Operating lease right-of-use assets	Other long-term assets	$	12,487	$	13,013
Finance lease obligations, current portion	Finance lease obligations, current portion	$	345	$	498
Finance lease obligations, non-current portion	Finance lease obligations, non-current portion	$	1,147	$	1,295
Total finance lease obligations		$	1,492	$	1,793
Operating lease obligations, current portion	Other accrued liabilities	$	2,933	$	2,842
Operating lease obligations, non-current portion	Other long-term liabilities	$	9,752	$	10,689
Total operating lease obligations		$	12,685	$	13,531

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 September 30, 2023:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2023	$	103	$	(2)	$	101	$	1,386	$	(204)	$	1,182
2024	415		(11)		404		4,171		(834)		3,337
2025	416		(11)		405		3,537		(860)		2,677
2026	409		(11)		398		2,973		(873)		2,100
2027	205		(11)		194		2,465		(826)		1,639
Thereafter	156		(9)		147		8,896		(4,868)		4,028
Total lease payments	1,704		(55)		1,649		23,428		(8,465)		14,963
Less: Interest	(164)		7		(157)		(4,348)		2,070		(2,278)
Present Value of Net Future Minimum Lease Payments	$	1,540	$	(48)	$	1,492	$	19,080	$	(6,395)	$	12,685

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	4.2 years	5.8 years
Weighted Average Discount Rate	4.07%	4.89%

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Pension Benefits and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Pension Benefits and Other Postretirement Benefits

Pension Benefits and Other Postretirement Benefits

Pension and Other Postretirement Benefit Plans

As of September 30, 2023, we had one qualified noncontributory defined benefit pension plan, the Rogers Corporation Employees’ Pension Plan (the Union Plan), which was frozen and ceased accruing benefits in 2013. 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.

Components of Net Periodic Benefit (Credit) Cost

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

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	—	$	—	$	—	$	—	$	19	$	10	$	57	$	30
Interest cost	263		191		799		573		17		8		51		24
Expected return of plan assets	(354)		(340)		(1,066)		(1,020)		—		—		—		—
Amortization of prior service credit	—		—		—		—		—		—		—		—
Amortization of net loss (gain)	116		111		360		333		(3)		—		(7)		—
Net periodic benefit (credit) cost	$	25	$	(38)	$	93	$	(114)	$	33	$	18	$	101	$	54

Employer Contributions

There were no required or voluntary contributions made to the Union Plan for each of the three and nine months ended September 30, 2023 and 2022. Additionally, we are not required to make additional contributions to the Union Plan for the remainder of 2023.

As there is no funding requirement for the other postretirement benefit plans, we funded these benefit payments as incurred, which were immaterial for each of the three and nine months ended September 30, 2023 and 2022, using cash from operations.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We are currently engaged in the following material 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 incurred $2.0 million of aggregate remediation costs through September 30, 2023, and the accrual for future remediation efforts is $0.7 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 for the nine months ended September 30, 2023:

	Asbestos Claims
Claims outstanding as of January 1, 2023	537
New claims filed	111
Pending claims concluded(1)	(87)
Claims outstanding as of September 30, 2023	561

(1) For the nine months ended September 30, 2023, 75 claims were dismissed and 12 claims were settled. Settlements totaled approximately $4.5 million for the nine months ended September 30, 2023.

Impact 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 that it intends 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 we incurred an immaterial amount of expenses for each of the three- and nine- month periods ended September 30, 2023 and 2022, 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 for future events, such as the number of new claims to be filed each year, the average cost of disposing of such claims, the length of time it takes to dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded.

Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of expense or income.

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

(Dollars in thousands)	September 30, 2023		December 31, 2022
Asbestos-related liabilities	$	64,707	$	65,033
Asbestos-related insurance receivables	$	59,807	$	59,807

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

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective income tax rate was 27.3% and 16.0% for the three months ended September 30, 2023 and 2022, respectively. The increase from the third quarter of 2022 was primarily due to the third quarter 2022 decrease in reserves for uncertain tax positions that did not recur in 2023. Our effective income tax rate was 30.0% and 20.5% for the nine months ended September 30, 2023 and 2022, respectively. The increase from the third quarter of 2022 was primarily due to the third quarter 2022 decrease in reserves for uncertain tax positions that did not recur in 2023.

The total amount of unrecognized tax benefits as of September 30, 2023 was $8.9 million, of which $7.9 million would affect our effective tax rate if recognized. Additionally, the balance of unrecognized tax benefits as of September 30, 2023 also included $1.0 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of September 30, 2023, we had $1.6 million accrued for the payment of interest.

We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2019 through 2022 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 2019.

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Operating Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

Our reporting structure is comprised of the following strategic operating segments: AES and EMS. The remaining operations, which represent our non-core businesses, are reported in the Other operating segment.

Our AES operating segment designs, develops, manufactures and sells circuit materials, ceramic substrate materials, busbars and cooling solutions for applications in electric and hybrid electric vehicles (EV/HEV), automotive (i.e., advanced driver assistance systems (ADAS)), aerospace and defense (i.e., antenna systems, communication systems and phased array radar systems), renewable energy (i.e., wind and solar), wireless infrastructure (i.e., power amplifiers, antennas and small cells), mass transit, industrial (variable frequency drives), connected devices (i.e., mobile internet devices and thermal solutions) and wired infrastructure (i.e., computing and internet protocol (IP) infrastructure) markets.

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 EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense and footwear and impact mitigation markets; customized silicones used in flex heater and semiconductor thermal applications for EV/HEV, general industrial, portable electronics, automotive, mass transit, aerospace and defense and medical markets; and 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 EV/HEV, general industrial, automotive and aerospace and defense markets.

Our Other operating segment consists of elastomer components for applications in the 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.

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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2023
Net sales - recognized over time	$	60,788	$	1,331	$	4,093	$	66,212
Net sales - recognized at a point in time	65,612		96,655		669		162,936
Total net sales	$	126,400	$	97,986	$	4,762	$	229,148
Operating income	$	5,674	$	19,851	$	1,597	$	27,122
Three Months Ended September 30, 2022
Net sales - recognized over time	$	72,969	$	3,346	$	4,110	$	80,425
Net sales - recognized at a point in time	57,639		107,637		1,530		166,806
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
Operating income	$	2,263	$	14,322	$	1,891	$	18,476
Nine Months Ended September 30, 2023
Net sales - recognized over time	$	180,338	$	17,423	$	12,011	$	209,772
Net sales - recognized at a point in time	212,102		278,153		3,789		494,044
Total net sales	$	392,440	$	295,576	$	15,800	$	703,816
Operating income	$	6,001	$	43,293	$	5,470	$	54,764
Nine Months Ended September 30, 2022
Net sales - recognized over time	$	214,091	$	9,090	$	12,763	$	235,944
Net sales - recognized at a point in time	190,835		317,223		3,465		511,523
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
Operating income	$	12,342	$	43,920	$	5,501	$	61,763

Net sales by operating segment and by geographic area were as follows:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2023
United States	$	20,403	$	37,269	$	1,060	$	58,732
Other Americas	273		2,453		(34)		2,692
Total Americas	20,676		39,722		1,026		61,424
China	33,719		28,341		1,762		63,822
Other APAC	20,766		8,793		555		30,114
Total APAC	54,485		37,134		2,317		93,936
Germany	24,830		6,295		95		31,220
Other EMEA	26,409		14,835		1,324		42,568
Total EMEA	51,239		21,130		1,419		73,788
Total net sales	$	126,400	$	97,986	$	4,762	$	229,148
Three Months Ended September 30, 2022
United States	$	33,969	$	46,772	$	1,087	$	81,828
Other Americas	843		2,534		247		3,624
Total Americas	34,812		49,306		1,334		85,452
China	36,126		37,349		2,290		75,765
Other APAC	16,544		5,173		508		22,225
Total APAC	52,670		42,522		2,798		97,990
Germany	19,727		7,310		393		27,430
Other EMEA	23,399		11,845		1,115		36,359
Total EMEA	43,126		19,155		1,508		63,789
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231

(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.

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Nine Months Ended September 30, 2023
United States	$	63,263	$	123,109	$	3,127	$	189,499
Other Americas	3,232		11,961		282		15,475
Total Americas	66,495		135,070		3,409		204,974
China	110,237		69,227		6,187		185,651
Other APAC	67,817		23,760		1,934		93,511
Total APAC	178,054		92,987		8,121		279,162
Germany	74,002		22,449		334		96,785
Other EMEA	73,889		45,070		3,936		122,895
Total EMEA	147,891		67,519		4,270		219,680
Total net sales	$	392,440	$	295,576	$	15,800	$	703,816
Nine Months Ended September 30, 2022
United States	$	94,907	$	136,340	$	3,075	$	234,322
Other Americas	2,814		7,550		614		10,978
Total Americas	97,721		143,890		3,689		245,300
China	113,448		99,734		6,048		219,230
Other APAC	60,023		18,418		1,778		80,219
Total APAC	173,471		118,152		7,826		299,449
Germany	57,653		23,784		874		82,311
Other EMEA	76,081		40,487		3,839		120,407
Total EMEA	133,734		64,271		4,713		202,718
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467

(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

We have 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 contract assets on the condensed consolidated statements of financial position.

Contract assets by operating segment were as follows:

(Dollars in thousands)	September 30, 2023		December 31, 2022
Advanced Electronics Solutions	$	41,264	$	33,736
Elastomeric Material Solutions	1,503		1,584
Other	3,709		3,533
Total contract assets	$	46,476	$	38,853

We did not have any contract liabilities as of September 30, 2023 or December 31, 2022. No impairment losses were recognized for the three- and nine- month periods ended September 30, 2023 and 2022, respectively, on any receivables or contract assets arising from our contracts with customers.

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Supplemental Financial Information

9 Months Ended

Sep. 30, 2023

Supplemental Income Statement Elements [Abstract]

Supplemental Financial Information

Supplemental Financial Information

Restructuring and Impairment Charges

The components of the “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Restructuring charges
Manufacturing footprint optimization	$	—	$	373	$	—	$	907
Global workforce reduction	656		—		8,746		—
Facility consolidations	1,265		—		7,615		—
Total restructuring charges	1,921		373		16,361		907
Impairment charges
Fixed asset impairment charges	—		—		—		212
Total impairment charges	—		—		—		212
Total restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119

Allocation of Restructuring and Impairment Charges to Operating Segments

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

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Advanced Electronics Solutions
Allocated restructuring charges	$	1,636	$	371	$	10,213	$	920
Allocated impairment charges	—		—		—		212
Elastomeric Material Solutions
Allocated restructuring charges	285		2		6,148		(13)
Allocated impairment charges	—		—		—		—
Total restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119

Restructuring Charges - Global Workforce Reduction

On February 16, 2023, we announced a reduction in force plan of our global workforce that was substantially completed in the first half of 2023, and will conclude in the fourth quarter of 2023. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $8.7 million to $8.9 million in pre-tax restructuring charges related to this plan, all of which are expected to be in the form of cash-based expenditures and substantially all of which are expected to be related to employee severance and other termination benefits.

(Dollars in thousands)	Global Workforce Reduction Restructuring Severance and Related Benefits
Balance as of December 31, 2022	$	—
Provisions	8,476
Payments	(8,133)
Foreign currency translation adjustment	41
Balance as of September 30, 2023	$	384

Restructuring Charges - Facility Consolidations

In late 2022 and early 2023, we announced our intention to exit certain facilities in the U.S. and Asia. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $7.7 million to $8.3 million in pre-tax restructuring charges related to these facility consolidations, most of which are expected to be in the form of accelerated depreciation.

As part of our facility consolidations plan, on February 17, 2023, we entered into an asset purchase agreement to sell our high-performance engineered cellular elastomer business in our EMS operating segment for a purchase price of $1.8 million. The first phase of the deal, which pertained to the net assets other than the land and building, was completed in late March 2023, while the second phase, which pertained to the sale of the land and building, was completed in early September 2023. Of the $1.8 million purchase price, $1.0 million and $0.8 million were allocated to the first and second phases of the deal, respectively. The first phase of the deal included $3.7 million in assets and $3.1 million in liabilities. The assets were primarily comprised of accounts receivable, contract assets and inventories, while the liabilities were primarily comprised of accounts payable and other accrued liabilities, along with the previously recognized accrual against the net assets of the business based on the estimated fair value of the business in December 2022. We incurred $1.2 million of selling costs in the first quarter of 2023, which were recorded in “Selling, general and administrative expenses” in our condensed consolidated statements of operations.

As of September 30, 2023 we recognized $16.1 million of assets held for sale within the “Other current assets” financial statement line item of our condensed consolidated statements of financial position. This includes $13.1 million for land and building at our Price Road facility in Chandler, Arizona and $3.0 million of land and building at one of our Suzhou, China facilities. During the third quarter of 2023, the previously disclosed asset purchase agreement to sell our Price Road facility was terminated and the facility remains held for sale.

Other Operating (Income) Expense, Net

The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
UTIS fire
Inventory charges	$	—	$	(1)	$	—	$	199
Professional services	77		369		596		1,295
Lease obligations	—		91		—		369
Compensation & benefits	—		562		—		1,931
Other	—		2		—		15
Insurance recoveries	(730)		(1,604)		(7,424)		(6,646)
Total UTIS fire	(653)		(581)		(6,828)		(2,837)
(Gain) loss on sale or disposal of property, plant and equipment	(193)		3		(679)		(15)
Total other operating (income) expense, net	$	(846)	$	(578)	$	(7,507)	$	(2,852)

In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea, which manufactures eSorba® polyurethane foams used in portable electronics and display applications. The site was safely evacuated and there were no reported injuries; however, there was extensive damage to the manufacturing site and some damage to nearby property. Commercial production at our new location in Siheung, South Korea commenced in late January 2023.

In connection with the UTIS fire, we recognized insurance recoveries of $0.7 million and $7.4 million related to our ongoing insurance claims for business interruption and property damage for the three and nine months ended September 30, 2023, respectively. We incurred $0.1 million and $0.6 million for various professional services for the three and nine months ended September 30, 2023, respectively, in connection with the pursuit of our insurance claims.

In connection with the UTIS fire, we recognized insurance recoveries of $1.6 million and $6.6 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three and nine months ended September 30, 2022, respectively. We incurred $0.4 million and $1.3 million for various professional services for the three and nine months ended September 30, 2022, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.9 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three and nine months ended September 30, 2022, respectively.

Interest Expense, Net

The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Interest on revolving credit facility	$	(1,939)	$	(2,831)	$	(8,306)	$	(5,014)
Line of credit fees	(219)		(118)		(565)		(409)
Debt issuance amortization costs	(123)		(178)		(527)		(536)
Interest income	133		175		978		462
Other	(180)		10		(207)		(62)
Total interest expense, net	$	(2,328)	$	(2,942)	$	(8,627)	$	(5,559)

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 19,035	$ 14,838	$ 33,394	$ 49,321

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Derivative Instruments Measured at Fair Value on a Recurring Basis

Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:

	Derivative Instruments at Fair Value as of September 30, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(53)	$	—	$	(53)
Copper derivative contracts	$	—	$	299	$	—	$	299

	Derivative Instruments at Fair Value as of December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total(1)
Foreign currency contracts	$	—	$	(82)	$	—	$	(82)
Copper derivative contracts	$	—	$	500	$	—	$	500

(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the condensed consolidated statements of financial position.

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Hedging Transactions and Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2023, the notional values of the remaining foreign currency forward contracts were as follows:

Notional Values of Foreign Currency Derivatives
USD/CNH	$	18,999,562
EUR/USD	€	10,440,705
KRW/USD	₩	3,994,650,000
JPY/EUR	¥	50,000,000

As of September 30, 2023, the volume of our copper contracts outstanding was as follows:

Volume of Copper Derivatives
October 2023 - December 2023	69 metric tons per month
January 2024 - March 2024	69 metric tons per month
April 2024 - June 2024	69 metric tons per month
July 2024 - September 2024	69 metric tons per month

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The impacts from our derivative instruments on the statement of operations and statements of comprehensive income (loss) were as follows:

		Three Months Ended				Nine Months Ended
(Dollars in thousands)	Financial Statement Line Item	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Foreign Currency Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	268	$	(101)	$	1,103	$	(1,019)
Copper Derivative Contracts
Contracts not designated as hedging instruments	Other income (expense), net	$	(182)	$	(171)	$	(602)	$	(969)

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Accumulated Balances Related to Each Component of Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive loss by component were as follows:

(Dollars and accompanying footnotes in thousands)	Foreign Currency Translation Adjustments		Pension and Other Postretirement Benefits(1)		Total
Balance as of December 31, 2022	$	(75,575)	$	(9,689)	$	(85,264)
Other comprehensive income (loss) before reclassifications	(3,860)		—		(3,860)
Amounts reclassified from accumulated other comprehensive loss	—		280		280
Net current-period other comprehensive income (loss)	(3,860)		280		(3,580)
Balance as of September 30, 2023	$	(79,435)	$	(9,409)	$	(88,844)
Balance as of December 31, 2021	$	(35,641)	$	(9,602)	$	(45,243)
Other comprehensive income (loss) before reclassifications	(80,383)		(15)		(80,398)
Amounts reclassified from accumulated other comprehensive loss	—		260		260
Net current-period other comprehensive income (loss)	(80,383)		245		(80,138)
Balance as of September 30, 2022	$	(116,024)	$	(9,357)	$	(125,381)

(1) Net of taxes of $1,846 and $1,926 as of September 30, 2023 and December 31, 2022, respectively. Net of taxes of $2,056 and $2,125 as of September 30, 2022 and December 31, 2021, respectively.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories, which are valued at the lower of cost or net realizable value, consisted of the following:

(Dollars in thousands)	September 30, 2023		December 31, 2022
Raw materials	$	71,133	$	87,851
Work-in-process	48,377		45,100
Finished goods	37,563		49,451
Total inventories	$	157,073	$	182,402

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the net carrying amount of goodwill by operating segment were as follows:

(Dollars in thousands)	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
December 31, 2022	$	115,352	$	234,789	$	2,224	$	352,365
Foreign currency translation adjustment	(520)		369		—		$	(151)
September 30, 2023	$	114,832	$	235,158	$	2,224	$	352,214

Schedule of Intangible Assets

The gross and net carrying amounts, as well as the accumulated amortization of other intangible assets were as follows:

	September 30, 2023						December 31, 2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	175,214	$	87,232	$	87,982	$	178,605	$	85,569	$	93,036
Technology	75,898		55,788		20,110		82,349		59,052		23,297
Trademarks and trade names	18,840		7,040		11,800		19,098		6,639		12,459
Covenants not to compete	1,479		1,051		428		1,919		1,199		720
Total definite-lived other intangible assets	271,431		151,111		120,320		281,971		152,459		129,512
Indefinite-lived other intangible asset	4,176		—		4,176		4,212		—		4,212
Total other intangible assets	$	275,607	$	151,111	$	124,496	$	286,183	$	152,459	$	133,724

Schedule of Weighted Average Amortization Period, by Intangible Asset Class

The weighted average amortization period as of September 30, 2023, by definite-lived other intangible asset class, was as follows:

Definite-Lived Other Intangible Asset Class	Weighted Average Remaining Amortization Period
Customer relationships	7.5 years
Technology	3.4 years
Trademarks and trade names	10.0 years
Covenants not to compete	0.6 years
Total definite-lived other intangible assets	7.0 years

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Share

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

(Dollars and shares in thousands, except per share amounts)	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator:
Net income	$	19,035	$	14,838	$	33,394	$	49,321
Denominator:
Weighted-average shares outstanding - basic	18,627		18,818		18,619		18,804
Effect of dilutive shares	58		181		49		193
Weighted-average shares outstanding - diluted	18,685		18,999		18,668		18,997
Basic earnings per share	$	1.02	$	0.79	$	1.79	$	2.62
Diluted earnings per share	$	1.02	$	0.78	$	1.79	$	2.60

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Capital Stock and Equity Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Schedule of Weighted-Average Assumptions Used

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2023:

	February 9, 2023
Expected volatility	53.2%
Expected term (in years)	2.9
Risk-free interest rate	4.08%

Schedule of Restricted Stock and Restricted Stock Activity

A summary of activity of the outstanding performance-based restricted stock units for the nine months ended September 30, 2023 is presented below:

	Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2022	65,513
Awards granted	50,551
Stock issued	(8,775)
Awards cancelled	(31,943)
Awards outstanding as of September 30, 2023	75,346

A summary of activity of the outstanding time-based restricted stock units for the nine months ended September 30, 2023 is presented below:

	Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2022	124,284
Awards granted	67,094
Stock issued	(43,254)
Awards cancelled	(24,296)
Awards outstanding as of September 30, 2023	123,828

A summary of activity of the outstanding deferred stock units for the nine months ended September 30, 2023 is presented below:

	Deferred Stock Units
Awards outstanding as of December 31, 2022	6,850
Awards granted	8,100
Stock issued	(6,850)
Awards outstanding as of September 30, 2023	8,100

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Leases (Tables)

9 Months Ended

Sep. 30, 2023

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:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating leases expense	$	1,004	$	652	$	2,851	$	1,896
Short-term leases expense	$	211	$	168	$	568	$	420
Payments on operating lease obligations	$	871	$	663	$	2,606	$	2,231

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	4.2 years	5.8 years
Weighted Average Discount Rate	4.07%	4.89%

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 condensed consolidated statements of financial position were as follows:

(Dollars in thousands)	Location in Statements of Financial Position	September 30, 2023		December 31, 2022
Finance lease right-of-use assets	Property, plant and equipment, net	$	1,477	$	1,749
Operating lease right-of-use assets	Other long-term assets	$	12,487	$	13,013
Finance lease obligations, current portion	Finance lease obligations, current portion	$	345	$	498
Finance lease obligations, non-current portion	Finance lease obligations, non-current portion	$	1,147	$	1,295
Total finance lease obligations		$	1,492	$	1,793
Operating lease obligations, current portion	Other accrued liabilities	$	2,933	$	2,842
Operating lease obligations, non-current portion	Other long-term liabilities	$	9,752	$	10,689
Total operating lease obligations		$	12,685	$	13,531

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 September 30, 2023:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2023	$	103	$	(2)	$	101	$	1,386	$	(204)	$	1,182
2024	415		(11)		404		4,171		(834)		3,337
2025	416		(11)		405		3,537		(860)		2,677
2026	409		(11)		398		2,973		(873)		2,100
2027	205		(11)		194		2,465		(826)		1,639
Thereafter	156		(9)		147		8,896		(4,868)		4,028
Total lease payments	1,704		(55)		1,649		23,428		(8,465)		14,963
Less: Interest	(164)		7		(157)		(4,348)		2,070		(2,278)
Present Value of Net Future Minimum Lease Payments	$	1,540	$	(48)	$	1,492	$	19,080	$	(6,395)	$	12,685

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 September 30, 2023:

	Finance						Operating
(Dollars in thousands)	Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2023	$	103	$	(2)	$	101	$	1,386	$	(204)	$	1,182
2024	415		(11)		404		4,171		(834)		3,337
2025	416		(11)		405		3,537		(860)		2,677
2026	409		(11)		398		2,973		(873)		2,100
2027	205		(11)		194		2,465		(826)		1,639
Thereafter	156		(9)		147		8,896		(4,868)		4,028
Total lease payments	1,704		(55)		1,649		23,428		(8,465)		14,963
Less: Interest	(164)		7		(157)		(4,348)		2,070		(2,278)
Present Value of Net Future Minimum Lease Payments	$	1,540	$	(48)	$	1,492	$	19,080	$	(6,395)	$	12,685

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Pension Benefits and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

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

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	—	$	—	$	—	$	—	$	19	$	10	$	57	$	30
Interest cost	263		191		799		573		17		8		51		24
Expected return of plan assets	(354)		(340)		(1,066)		(1,020)		—		—		—		—
Amortization of prior service credit	—		—		—		—		—		—		—		—
Amortization of net loss (gain)	116		111		360		333		(3)		—		(7)		—
Net periodic benefit (credit) cost	$	25	$	(38)	$	93	$	(114)	$	33	$	18	$	101	$	54

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2023

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 for the nine months ended September 30, 2023:

	Asbestos Claims
Claims outstanding as of January 1, 2023	537
New claims filed	111
Pending claims concluded(1)	(87)
Claims outstanding as of September 30, 2023	561

(1) For the nine months ended September 30, 2023, 75 claims were dismissed and 12 claims were settled. Settlements totaled approximately $4.5 million for the nine months ended September 30, 2023.

Schedule of Asbestos-Related Claims and Insurance Receivables

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

(Dollars in thousands)	September 30, 2023		December 31, 2022
Asbestos-related liabilities	$	64,707	$	65,033
Asbestos-related insurance receivables	$	59,807	$	59,807

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Operating Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of 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 Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2023
Net sales - recognized over time	$	60,788	$	1,331	$	4,093	$	66,212
Net sales - recognized at a point in time	65,612		96,655		669		162,936
Total net sales	$	126,400	$	97,986	$	4,762	$	229,148
Operating income	$	5,674	$	19,851	$	1,597	$	27,122
Three Months Ended September 30, 2022
Net sales - recognized over time	$	72,969	$	3,346	$	4,110	$	80,425
Net sales - recognized at a point in time	57,639		107,637		1,530		166,806
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231
Operating income	$	2,263	$	14,322	$	1,891	$	18,476
Nine Months Ended September 30, 2023
Net sales - recognized over time	$	180,338	$	17,423	$	12,011	$	209,772
Net sales - recognized at a point in time	212,102		278,153		3,789		494,044
Total net sales	$	392,440	$	295,576	$	15,800	$	703,816
Operating income	$	6,001	$	43,293	$	5,470	$	54,764
Nine Months Ended September 30, 2022
Net sales - recognized over time	$	214,091	$	9,090	$	12,763	$	235,944
Net sales - recognized at a point in time	190,835		317,223		3,465		511,523
Total net sales	$	404,926	$	326,313	$	16,228	$	747,467
Operating income	$	12,342	$	43,920	$	5,501	$	61,763

Net sales by operating segment and by geographic area were as follows:

(Dollars in thousands)	Net Sales(1)
Region/Country	Advanced Electronics Solutions		Elastomeric Material Solutions		Other		Total
Three Months Ended September 30, 2023
United States	$	20,403	$	37,269	$	1,060	$	58,732
Other Americas	273		2,453		(34)		2,692
Total Americas	20,676		39,722		1,026		61,424
China	33,719		28,341		1,762		63,822
Other APAC	20,766		8,793		555		30,114
Total APAC	54,485		37,134		2,317		93,936
Germany	24,830		6,295		95		31,220
Other EMEA	26,409		14,835		1,324		42,568
Total EMEA	51,239		21,130		1,419		73,788
Total net sales	$	126,400	$	97,986	$	4,762	$	229,148
Three Months Ended September 30, 2022
United States	$	33,969	$	46,772	$	1,087	$	81,828
Other Americas	843		2,534		247		3,624
Total Americas	34,812		49,306		1,334		85,452
China	36,126		37,349		2,290		75,765
Other APAC	16,544		5,173		508		22,225
Total APAC	52,670		42,522		2,798		97,990
Germany	19,727		7,310		393		27,430
Other EMEA	23,399		11,845		1,115		36,359
Total EMEA	43,126		19,155		1,508		63,789
Total net sales	$	130,608	$	110,983	$	5,640	$	247,231

(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.

Contract assets by operating segment were as follows:

(Dollars in thousands)	September 30, 2023		December 31, 2022
Advanced Electronics Solutions	$	41,264	$	33,736
Elastomeric Material Solutions	1,503		1,584
Other	3,709		3,533
Total contract assets	$	46,476	$	38,853

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Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2023

Supplemental Income Statement Elements [Abstract]

Schedule of Restructuring and Impairment Charges

The components of the “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Restructuring charges
Manufacturing footprint optimization	$	—	$	373	$	—	$	907
Global workforce reduction	656		—		8,746		—
Facility consolidations	1,265		—		7,615		—
Total restructuring charges	1,921		373		16,361		907
Impairment charges
Fixed asset impairment charges	—		—		—		212
Total impairment charges	—		—		—		212
Total restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119

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

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Advanced Electronics Solutions
Allocated restructuring charges	$	1,636	$	371	$	10,213	$	920
Allocated impairment charges	—		—		—		212
Elastomeric Material Solutions
Allocated restructuring charges	285		2		6,148		(13)
Allocated impairment charges	—		—		—		—
Total restructuring and impairment charges	$	1,921	$	373	$	16,361	$	1,119

Schedule of Severance Activity

(Dollars in thousands)	Global Workforce Reduction Restructuring Severance and Related Benefits
Balance as of December 31, 2022	$	—
Provisions	8,476
Payments	(8,133)
Foreign currency translation adjustment	41
Balance as of September 30, 2023	$	384

Schedule of Other Operating (Income) Expense

The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
UTIS fire
Inventory charges	$	—	$	(1)	$	—	$	199
Professional services	77		369		596		1,295
Lease obligations	—		91		—		369
Compensation & benefits	—		562		—		1,931
Other	—		2		—		15
Insurance recoveries	(730)		(1,604)		(7,424)		(6,646)
Total UTIS fire	(653)		(581)		(6,828)		(2,837)
(Gain) loss on sale or disposal of property, plant and equipment	(193)		3		(679)		(15)
Total other operating (income) expense, net	$	(846)	$	(578)	$	(7,507)	$	(2,852)

Schedule of Components of Interest Expense, Net

The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Interest on revolving credit facility	$	(1,939)	$	(2,831)	$	(8,306)	$	(5,014)
Line of credit fees	(219)		(118)		(565)		(409)
Debt issuance amortization costs	(123)		(178)		(527)		(536)
Interest income	133		175		978		462
Other	(180)		10		(207)		(62)
Total interest expense, net	$	(2,328)	$	(2,942)	$	(8,627)	$	(5,559)

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Fair Value Measurements (Various Instruments That Require Fair Value Measurement) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ (53)	$ (82)
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	(53)	(82)
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	299	500
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	299	500
Copper derivative contracts | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivatives	$ 0	$ 0

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Hedging Transactions and Derivative Financial Instruments (Notional Values of Derivative Instruments) (Details) - Contracts not designated as hedging instruments	Sep. 30, 2023 USD ($) tons_per_month	Sep. 30, 2023 EUR (€) tons_per_month	Sep. 30, 2023 KRW (₩) tons_per_month
October 2023 - December 2023
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
January 2024 - March 2024
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
April 2024 - June 2024
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
July 2024 - September 2024
Derivative [Line Items]
Volume of Copper Derivatives (in metric tons per month)	69	69	69
USD/CNH | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | $	$ 18,999,562
EUR/USD | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | €		€ 10,440,705
KRW/USD | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | ₩			₩ 3,994,650,000
JPY/EUR | Foreign Currency Derivatives
Derivative [Line Items]
Notional Values of Foreign Currency Derivatives | ₩			₩ 50,000,000

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Hedging Transactions and Derivative Financial Instruments (Additional Information) (Details)	Sep. 30, 2023 contract
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 (in contracts)	12

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Hedging Transactions and Derivative Financial Instruments (Effect and Fair Value of Derivative Instruments) (Details) - Contracts not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Foreign Currency Contracts
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	$ 268	$ (101)	$ 1,103	$ (1,019)
Copper Derivative Contracts
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	$ (182)	$ (171)	$ (602)	$ (969)

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Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			$ 1,172,466
Other comprehensive income (loss) before reclassifications			(3,860)	$ (80,398)
Amounts reclassified from accumulated other comprehensive loss			280	260
Other comprehensive income (loss)	$ (17,813)	$ (34,948)	(3,580)	(80,138)
Balance, end of period	1,210,612	1,089,853	1,210,612	1,089,853
AOCI, Pension and other postretirement benefit plans, tax	1,846	2,056	1,846	2,056	$ 1,926	$ 2,125
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	(71,031)	(90,433)	(85,264)	(45,243)
Other comprehensive income (loss)	(17,813)	(34,948)	(3,580)	(80,138)
Balance, end of period	(88,844)	(125,381)	(88,844)	(125,381)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(75,575)	(35,641)
Other comprehensive income (loss) before reclassifications			(3,860)	(80,383)
Amounts reclassified from accumulated other comprehensive loss			0	0
Other comprehensive income (loss)			(3,860)	(80,383)
Balance, end of period	(79,435)	(116,024)	(79,435)	(116,024)
Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period			(9,689)	(9,602)
Other comprehensive income (loss) before reclassifications			0	(15)
Amounts reclassified from accumulated other comprehensive loss			280	260
Other comprehensive income (loss)			280	245
Balance, end of period	$ (9,409)	$ (9,357)	$ (9,409)	$ (9,357)

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 71,133	$ 87,851
Work-in-process	48,377	45,100
Finished goods	37,563	49,451
Total inventories	$ 157,073	$ 182,402

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Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill by Segment) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 352,365
Foreign currency translation adjustment	(151)
Goodwill, ending balance	352,214
Advanced Electronics Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	115,352
Foreign currency translation adjustment	(520)
Goodwill, ending balance	114,832
Elastomeric Material Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	234,789
Foreign currency translation adjustment	369
Goodwill, ending balance	235,158
Other
Goodwill [Roll Forward]
Goodwill, beginning balance	2,224
Foreign currency translation adjustment	0
Goodwill, ending balance	$ 2,224

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Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 271,431	$ 281,971
Indefinite-lived other intangible asset	4,176	4,212
Total other intangible assets, gross carrying amount	275,607	286,183
Accumulated Amortization	151,111	152,459
Net Carrying Amount	120,320	129,512
Total other intangible assets, net carrying amount	124,496	133,724
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	175,214	178,605
Accumulated Amortization	87,232	85,569
Net Carrying Amount	87,982	93,036
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	75,898	82,349
Accumulated Amortization	55,788	59,052
Net Carrying Amount	20,110	23,297
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	18,840	19,098
Accumulated Amortization	7,040	6,639
Net Carrying Amount	11,800	12,459
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,479	1,919
Accumulated Amortization	1,051	1,199
Net Carrying Amount	$ 428	$ 720

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Goodwill and Other Intangible Assets (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3.4	$ 4.1	$ 10.0	$ 12.6
Annual Future Amortization Expense
Anticipated future amortization expense for the remainder of 2023	3.3		3.3
Anticipated future amortization expense for 2024	12.2		12.2
Anticipated future amortization expense for 2025	10.6		10.6
Anticipated future amortization expense for 2026	10.2		10.2
Anticipated future amortization expense for 2027	$ 9.9		$ 9.9

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Goodwill and Other Intangible Assets (Weighted Average Amortization Period by Intangible Asset Class) (Details)	Sep. 30, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	7 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	7 years 6 months
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	3 years 4 months 24 days
Trademarks and trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	10 years
Covenants not to compete
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived other intangible assets	7 months 6 days

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Earnings Per Share (Computation of Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 19,035	$ 14,838	$ 33,394	$ 49,321
Denominator:
Weighted-average shares outstanding - basic (in shares)	18,627,000	18,818,000	18,619,000	18,804,000
Effect of dilutive shares (in shares)	58,000	181,000	49,000	193,000
Weighted-average shares outstanding - diluted (in shares)	18,685,000	18,999,000	18,668,000	18,997,000
Basic earnings per share (in dollars per share)	$ 1.02	$ 0.79	$ 1.79	$ 2.62
Diluted earnings per share (in dollars per share)	$ 1.02	$ 0.78	$ 1.79	$ 2.60
Anti-dilutive shares excluded (in shares)	8,000	0

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Capital Stock and Equity Compensation (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award program, measurement period (years)			3 years
Expected dividend yield (as a percent)			0.00%
Compensation expense	$ 1.3	$ 1.1	$ 2.6	$ 3.3
Performance-Based Restricted Stock Units | 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 (as a percent)			0.00%
Performance-Based Restricted Stock Units | 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 (as a percent)			200.00%
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	2.5	2.4	$ 7.1	7.0
Conversion ratio			1
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 0.0	$ 0.0	$ 1.2	$ 1.3
Conversion ratio			1
Vesting period			13 months

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Capital Stock and Equity Compensation (Monte Carlo Calculation Assumptions) (Details) - Performance-Based Restricted Stock Units	Feb. 09, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (as a percent)	53.20%
Expected term (in years)	2 years 10 months 24 days
Risk-free interest rate (as a percent)	4.08%

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Capital Stock and Equity Compensation (Performance-Based Restricted Stock Awards) (Details) - Performance-Based Restricted Stock Units	9 Months Ended
	Sep. 30, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding beginning balance (in shares)	65,513
Awards granted (in shares)	50,551
Stock issued (in shares)	(8,775)
Awards cancelled (in shares)	(31,943)
Awards outstanding ending balance (in shares)	75,346

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Capital Stock and Equity Compensation (Time-Based Restricted Stock Awards) (Details) - Time-Based Restricted Stock Units	9 Months Ended
	Sep. 30, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding beginning balance (in shares)	124,284
Awards granted (in shares)	67,094
Stock issued (in shares)	(43,254)
Awards cancelled (in shares)	(24,296)
Awards outstanding ending balance (in shares)	123,828

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Capital Stock and Equity Compensation (Deferred Stock Units) (Details) - Deferred Stock Units - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding beginning balance (in shares)			6,850
Awards granted (in shares)			8,100
Stock issued (in shares)			(6,850)
Awards outstanding ending balance (in shares)	8,100		8,100
Compensation expense	$ 0.0	$ 0.0	$ 1.2	$ 1.3

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Debt (Details)			3 Months Ended		9 Months Ended
	Mar. 24, 2023 USD ($) options	Oct. 16, 2020 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Number of borrowings credit agreement interest options | options	2
Proceeds from borrowings under revolving credit facility					$ 0	$ 100,000,000
Borrowings under revolving credit facility			$ 80,000,000		80,000,000		$ 215,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowings under revolving credit facility			80,000,000		80,000,000		215,000,000
Outstanding line of credit issuance costs			2,300,000		2,300,000		$ 900,000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 450,000,000
Additional borrowing capacity		$ 175,000,000
Variable rate lower range, basis spread		0.625%
Variable rate higher range, basis spread		1.00%
Leverage ratio	3.25	3.25
One-time leverage ratio maximum option	3.75	3.50
One-time leverage ratio maximum option, period of increased maximum leverage ratio	1 year	1 year
ICR covenant limit	3.00	3.00
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	$ 50,000,000
Debt instrument, leverage ratio, maximum		2.75
Proceeds from borrowings under revolving credit facility				$ 30,000,000		100,000,000
Discretionary principal payments on revolving credit facility			50,000,000	$ 0	135,000,000	$ 0
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Minimum
Debt Instrument [Line Items]
Unused capacity, commitment fee (as a percent)	0.25%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Maximum
Debt Instrument [Line Items]
Unused capacity, commitment fee (as a percent)	0.35%
Allowed restricted payments, including cash dividends		$ 20,000,000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Eurocurrency loans
Debt Instrument [Line Items]
Line of credit, LIBOR rate, minimum basis spread (as a percent)		1.625%
Line of credit, LIBOR rate, maximum basis spread (as a percent)		2.00%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | RFR Bank Loans
Debt Instrument [Line Items]
Line of credit, SONIA rate, minimum basis spread (percent)		0.01625
Line of credit, SONIA rate, maximum basis spread (percent)		0.02000
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		0.50%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) 1
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.00%
Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | Sterling Overnight Index Average (SONIA)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		0.0326%
Revolving Credit Facility | Fifth Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 450,000,000
Additional borrowing capacity		$ 225,000,000
Variable rate lower range, basis spread	0.625%
Variable rate higher range, basis spread	1.00%
Proceeds from borrowings under revolving credit facility			$ 0		$ 0
Revolving Credit Facility | Fifth Amended and Restated Credit Agreement | Eurocurrency loans
Debt Instrument [Line Items]
Line of credit, LIBOR rate, minimum basis spread (as a percent)	16250.00%
Line of credit, LIBOR rate, maximum basis spread (as a percent)	2.00%
Revolving Credit Facility | Fifth Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) 1
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					1.625%
Revolving Credit Facility | Fifth Amended and Restated Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					1.10%
Revolving Credit Facility | Fifth Amended and Restated Credit Agreement | Fed Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					0.50%

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Leases (Payment for Operating Leases Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating leases expense	$ 1,004	$ 652	$ 2,851	$ 1,896
Short-term leases expense	211	168	568	420
Payments on operating lease obligations	$ 871	$ 663	$ 2,606	$ 2,231

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Leases (Schedule of Assets and Liabilities Balance Related to Finance and Operating Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Finance lease right-of-use assets	$ 1,477	$ 1,749
Operating lease right-of-use assets	12,487	13,013
Finance lease obligations, current portion	345	498
Finance lease obligations, non-current portion	1,147	1,295
Total finance lease obligations	1,492	1,793
Operating lease obligations, current portion	2,933	2,842
Operating lease obligations, non-current portion	9,752	10,689
Total operating lease obligations	$ 12,685	$ 13,531
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net of accumulated depreciation of $391,898 and $381,584	Property, plant and equipment, net of accumulated depreciation of $391,898 and $381,584
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other long-term assets	Other long-term assets
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities

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Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finance Leases Signed
2023	$ 103
2024	415
2025	416
2026	409
2027	205
Thereafter	156
Total lease payments	1,704
Less: Interest	(164)
Present Value of Net Future Minimum Lease Payments	1,540
Finance Leases Less: Leases Not Yet Commenced
2023	(2)
2024	(11)
2025	(11)
2026	(11)
2027	(11)
Thereafter	(9)
Total lease payments	(55)
Less: Interest	7
Present Value of Net Future Minimum Lease Payments	(48)
Finance Leases in Effect
2023	101
2024	404
2025	405
2026	398
2027	194
Thereafter	147
Total lease payments	1,649
Less: Interest	(157)
Total finance lease obligations	1,492	$ 1,793
Operating Leases Signed
2023	1,386
2024	4,171
2025	3,537
2026	2,973
2027	2,465
Thereafter	8,896
Total lease payments	23,428
Less: Interest	(4,348)
Present Value of Net Future Minimum Lease Payments	19,080
Operating Leases Less: Leases Not Yet Commenced
2023	(204)
2024	(834)
2025	(860)
2026	(873)
2027	(826)
Thereafter	(4,868)
Total lease payments	(8,465)
Less: Interest	2,070
Present Value of Net Future Minimum Lease Payments	(6,395)
Operating Leases in Effect
2023	1,182
2024	3,337
2025	2,677
2026	2,100
2027	1,639
Thereafter	4,028
Total lease payments	14,963
Less: Interest	(2,278)
Total operating lease obligations	$ 12,685	$ 13,531

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Leases (Lease Term and Discount Rate of Net Future Minimum Lease Payments) (Details)	Sep. 30, 2023
Leases [Abstract]
Finance leases, weighted average remaining lease term (in years)	4 years 2 months 12 days
Finance leases, weighted average discount rate (as a percent)	4.07%
Operating leases, weighted average remaining lease term (in years)	5 years 9 months 18 days
Operating leases, weighted average discount rate (as a percent)	4.89%

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Pension Benefits and Other Postretirement Benefits (Additional Information) (Details)	9 Months Ended
	Sep. 30, 2023 USD ($) plan	Sep. 30, 2022 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Number of qualified noncontributory defined benefit plans | plan	1
Pension Benefits | Merged Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions	$ 0	$ 0
Pension Benefits | Union Plan
Defined Benefit Plan Disclosure [Line Items]
Additional contributions required to make for remainder of fiscal year	$ 0

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Pension Benefits and Other Postretirement Benefits (Components of Net Periodic Benefit (Credit) Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	263	191	799	573
Expected return of plan assets	(354)	(340)	(1,066)	(1,020)
Amortization of prior service credit	0	0	0	0
Amortization of net loss (gain)	116	111	360	333
Net periodic benefit (credit) cost	25	(38)	93	(114)
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	19	10	57	30
Interest cost	17	8	51	24
Expected return of plan assets	0	0	0	0
Amortization of prior service credit	0	0	0	0
Amortization of net loss (gain)	(3)	0	(7)	0
Net periodic benefit (credit) cost	$ 33	$ 18	$ 101	$ 54

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Commitments and Contingencies (Additional Information) (Details) - Connecticut Voluntary Corrective Action Program $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Loss Contingencies [Line Items]
Environmental remediation expense incurred	$ 2.0
Accrual for future remediation efforts	$ 0.7

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Commitments and Contingencies (Summary of Change in Number of Asbestos Claims Outstanding) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) claim
Liability for Asbestos and Environmental Claims [Roll Forward]
Claims outstanding, beginning	537
New claims filed	111
Pending claims concluded	(87)
Claims outstanding, ending	561
Number of claims dismissed	75
Number of claims settled	12
Settlements | $	$ 4.5

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Commitments and Contingencies (Schedule of Total Estimated Liability for Asbestos) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Asbestos-related liabilities	$ 64,707	$ 65,033
Asbestos-related insurance receivables	$ 59,807	$ 59,807

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	27.30%	16.00%	30.00%	20.50%
Unrecognized tax benefits	$ 8.9		$ 8.9
Unrecognized tax benefits that would affect the effective tax rate if recognized	7.9		7.9
Unrecognized tax benefits that would result in adjustments to other tax accounts	1.0		1.0
Unrecognized tax benefits, accrual for payment of interest	$ 1.6		$ 1.6

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Operating Segment Information (Income by Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Net sales	$ 229,148	$ 247,231	$ 703,816	$ 747,467
Operating income	27,122	18,476	54,764	61,763
Total Americas
Segment Reporting Information [Line Items]
Net sales	61,424	85,452	204,974	245,300
United States
Segment Reporting Information [Line Items]
Net sales	58,732	81,828	189,499	234,322
Other Americas
Segment Reporting Information [Line Items]
Net sales	2,692	3,624	15,475	10,978
Total APAC
Segment Reporting Information [Line Items]
Net sales	93,936	97,990	279,162	299,449
China
Segment Reporting Information [Line Items]
Net sales	63,822	75,765	185,651	219,230
Other APAC
Segment Reporting Information [Line Items]
Net sales	30,114	22,225	93,511	80,219
Total EMEA
Segment Reporting Information [Line Items]
Net sales	73,788	63,789	219,680	202,718
Germany
Segment Reporting Information [Line Items]
Net sales	31,220	27,430	96,785	82,311
Other EMEA
Segment Reporting Information [Line Items]
Net sales	42,568	36,359	122,895	120,407
Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	126,400	130,608	392,440	404,926
Operating income	5,674	2,263	6,001	12,342
Advanced Electronics Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	20,676	34,812	66,495	97,721
Advanced Electronics Solutions | United States
Segment Reporting Information [Line Items]
Net sales	20,403	33,969	63,263	94,907
Advanced Electronics Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	273	843	3,232	2,814
Advanced Electronics Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	54,485	52,670	178,054	173,471
Advanced Electronics Solutions | China
Segment Reporting Information [Line Items]
Net sales	33,719	36,126	110,237	113,448
Advanced Electronics Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	20,766	16,544	67,817	60,023
Advanced Electronics Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	51,239	43,126	147,891	133,734
Advanced Electronics Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	24,830	19,727	74,002	57,653
Advanced Electronics Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	26,409	23,399	73,889	76,081
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	97,986	110,983	295,576	326,313
Operating income	19,851	14,322	43,293	43,920
Elastomeric Material Solutions | Total Americas
Segment Reporting Information [Line Items]
Net sales	39,722	49,306	135,070	143,890
Elastomeric Material Solutions | United States
Segment Reporting Information [Line Items]
Net sales	37,269	46,772	123,109	136,340
Elastomeric Material Solutions | Other Americas
Segment Reporting Information [Line Items]
Net sales	2,453	2,534	11,961	7,550
Elastomeric Material Solutions | Total APAC
Segment Reporting Information [Line Items]
Net sales	37,134	42,522	92,987	118,152
Elastomeric Material Solutions | China
Segment Reporting Information [Line Items]
Net sales	28,341	37,349	69,227	99,734
Elastomeric Material Solutions | Other APAC
Segment Reporting Information [Line Items]
Net sales	8,793	5,173	23,760	18,418
Elastomeric Material Solutions | Total EMEA
Segment Reporting Information [Line Items]
Net sales	21,130	19,155	67,519	64,271
Elastomeric Material Solutions | Germany
Segment Reporting Information [Line Items]
Net sales	6,295	7,310	22,449	23,784
Elastomeric Material Solutions | Other EMEA
Segment Reporting Information [Line Items]
Net sales	14,835	11,845	45,070	40,487
Other
Segment Reporting Information [Line Items]
Net sales	4,762	5,640	15,800	16,228
Operating income	1,597	1,891	5,470	5,501
Other | Total Americas
Segment Reporting Information [Line Items]
Net sales	1,026	1,334	3,409	3,689
Other | United States
Segment Reporting Information [Line Items]
Net sales	1,060	1,087	3,127	3,075
Other | Other Americas
Segment Reporting Information [Line Items]
Net sales	(34)	247	282	614
Other | Total APAC
Segment Reporting Information [Line Items]
Net sales	2,317	2,798	8,121	7,826
Other | China
Segment Reporting Information [Line Items]
Net sales	1,762	2,290	6,187	6,048
Other | Other APAC
Segment Reporting Information [Line Items]
Net sales	555	508	1,934	1,778
Other | Total EMEA
Segment Reporting Information [Line Items]
Net sales	1,419	1,508	4,270	4,713
Other | Germany
Segment Reporting Information [Line Items]
Net sales	95	393	334	874
Other | Other EMEA
Segment Reporting Information [Line Items]
Net sales	1,324	1,115	3,936	3,839
Recognized over time
Segment Reporting Information [Line Items]
Net sales	66,212	80,425	209,772	235,944
Recognized over time | Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	60,788	72,969	180,338	214,091
Recognized over time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	1,331	3,346	17,423	9,090
Recognized over time | Other
Segment Reporting Information [Line Items]
Net sales	4,093	4,110	12,011	12,763
Recognized at a point in time
Segment Reporting Information [Line Items]
Net sales	162,936	166,806	494,044	511,523
Recognized at a point in time | Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Net sales	65,612	57,639	212,102	190,835
Recognized at a point in time | Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Net sales	96,655	107,637	278,153	317,223
Recognized at a point in time | Other
Segment Reporting Information [Line Items]
Net sales	$ 669	$ 1,530	$ 3,789	$ 3,465

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Operating Segment Information (Contract Assets By Operating Segments) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total contract assets	$ 46,476	$ 38,853
Advanced Electronics Solutions
Segment Reporting Information [Line Items]
Total contract assets	41,264	33,736
Elastomeric Material Solutions
Segment Reporting Information [Line Items]
Total contract assets	1,503	1,584
Other
Segment Reporting Information [Line Items]
Total contract assets	$ 3,709	$ 3,533

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Supplemental Financial Information (Restructuring and Impairment Charges) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,921	$ 373	$ 16,361	$ 907
Fixed asset impairment charges	0	0	0	212
Total impairment charges	0	0	0	212
Total restructuring and impairment charges	1,921	373	16,361	1,119
Manufacturing footprint optimization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	373	0	907
Global workforce reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	656	0	8,746	0
Facility consolidations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,265	$ 0	$ 7,615	$ 0

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Supplemental Financial Information (Allocation of Restructuring and Impairment Charges to Operating Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	$ 1,921	$ 373	$ 16,361	$ 1,119
Total impairment charges	0	0	0	212
Employee Severance | Advanced Electronics Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	1,636	371	10,213	920
Total impairment charges	0	0	0	212
Employee Severance | Elastomeric Material Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring and impairment charges	285	2	6,148	(13)
Total impairment charges	$ 0	$ 0	$ 0	$ 0

XML

Supplemental Financial Information (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Feb. 16, 2023
Restructuring Cost and Reserve [Line Items]
Operating segment for a purchase price	$ 1,800		$ 1,800
Disposal group, including discontinued operation, consideration phase one	1,000		1,000
Disposal group, including discontinued operation, consideration phase two	800		800
Disposal group, including discontinued operation, assets	3,700		3,700
Disposal group, including discontinued operation, liabilities	3,100		3,100
Disposal group, including discontinued operation, selling costs	1,200		1,200
Net book value of assets held-and-used	16,100		16,100
Insurance recoveries	730	$ 1,604	7,424	$ 6,646
Professional services	77	369	596	1,295
Compensation & benefits	0	$ 562	0	$ 1,931
Price Road Facility in Chandler, Arizona
Restructuring Cost and Reserve [Line Items]
Net book value of assets held-and-used	13,100		13,100
Suzhou, China Facilities
Restructuring Cost and Reserve [Line Items]
Net book value of assets held-and-used	3,000		3,000
Minimum
Restructuring Cost and Reserve [Line Items]
Restructuring expenses expected to incur	7,700		7,700		$ 8,700
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring expenses expected to incur	$ 8,300		$ 8,300		$ 8,900

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Supplemental Financial Information (Schedule of Severance and Related Benefits Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Reserve [Roll Forward]
Provisions	$ 1,921	$ 373	$ 16,361	$ 907
Severance and Related Benefits
Restructuring Reserve [Roll Forward]
Beginning balance			0
Provisions			8,476
Payments for Restructuring			(8,133)
Foreign currency translation adjustment			41
Ending balance	$ 384		$ 384

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Supplemental Financial Information (Other Operating (Income) Expense, Net) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
UTIS fire
Inventory charges	$ 0	$ (1)	$ 0	$ 199
Professional services	77	369	596	1,295
Lease obligations	0	91	0	369
Compensation & benefits	0	562	0	1,931
Other	0	2	0	15
Insurance recoveries	(730)	(1,604)	(7,424)	(6,646)
Total UTIS fire	(653)	(581)	(6,828)	(2,837)
(Gain) loss on sale or disposal of property, plant and equipment	(193)	3	(679)	(15)
Total other operating (income) expense, net	$ (846)	$ (578)	$ (7,507)	$ (2,852)

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Supplemental Financial Information (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Supplemental Income Statement Elements [Abstract]
Interest on revolving credit facility	$ (1,939)	$ (2,831)	$ (8,306)	$ (5,014)
Line of credit fees	(219)	(118)	(565)	(409)
Debt issuance amortization costs	(123)	(178)	(527)	(536)
Interest income	133	175	978	462
Other	(180)	10	(207)	(62)
Total interest expense, net	$ (2,328)	$ (2,942)	$ (8,627)	$ (5,559)