MATERION CORP, 10-Q filed on 10/24/2019
Quarterly Report
v3.19.3
Document and Entity Information
9 Months Ended
Sep. 27, 2019
shares
Document and Entity Information [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Sep. 27, 2019
Document Transition Report false
Entity File Number 001-15885
Entity Registrant Name MATERION CORPORATION
Local Phone Number 486-4200
Title of 12(b) Security Common Stock, no par value
Entity Incorporation, State or Country Code OH
Entity Tax Identification Number 34-1919973
Entity Address, Address Line One 6070 Parkland Blvd
Entity Address, City or Town Mayfield Heights
Entity Address, State or Province OH
City Area Code 216
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Address, Postal Zip Code 44124
Entity Central Index Key 0001104657
Current Fiscal Year End Date --12-31
Entity Filer Category Large Accelerated Filer
Document Fiscal Year Focus 2019
Document Fiscal Period Focus Q3
Trading Symbol MTRN
Amendment Flag false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Small Business false
Entity Common Stock, Shares Outstanding 20,402,976
Security Exchange Name NYSE
v3.19.3
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Income Statement [Abstract]        
Net sales $ 305,979 $ 297,193 $ 905,263 $ 909,745
Cost of sales 241,034 232,258 701,412 724,692
Gross margin 64,945 64,935 203,851 185,053
Selling, general, and administrative expense 36,311 38,872 116,266 115,807
Research and development expense 5,262 4,250 13,064 11,753
Goodwill impairment charges 11,560 0 11,560 0
Asset impairment charges 2,581 0 2,581 0
Other - net 2,942 3,147 9,954 10,384
Operating profit 6,289 18,666 50,426 47,109
Interest expense—net 436 613 1,402 2,010
Other non-operating expense - net 127 800 3,484 1,679
Income before income taxes 5,726 17,253 45,540 43,420
Income tax expense (benefit) 2,263 (2,713) 9,631 1,746
Net income $ 3,463 $ 19,966 $ 35,909 $ 41,674
Basic earnings per share:        
Net income per share of common stock (in dollars per share) $ 0.17 $ 0.99 $ 1.76 $ 2.06
Diluted earnings per share:        
Net income per share of common stock (in dollars per share) $ 0.17 $ 0.97 $ 1.74 $ 2.02
Weighted-average number of shares of common stock outstanding:        
Basic (in shares) 20,401 20,241 20,351 20,199
Diluted (in shares) 20,677 20,648 20,645 20,607
v3.19.3
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Statement of Comprehensive Income [Abstract]        
Net income $ 3,463 $ 19,966 $ 35,909 $ 41,674
Other comprehensive income (loss):        
Foreign currency translation adjustment (463) 116 (627) 285
Derivative and hedging activity, net of tax 82 125 9 1,213
Pension and post-employment benefit adjustment, net of tax 501 1,507 14,994 4,081
Net current period other comprehensive income (loss) after tax 120 1,748 14,376 5,579
Comprehensive income $ 3,583 $ 21,714 $ 50,285 $ 47,253
v3.19.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 31, 2018
Current assets    
Cash and cash equivalents $ 94,526 $ 70,645
Accounts receivable 165,477 130,538
Inventories, net 191,956 214,871
Prepaid and other current assets 23,658 23,299
Total current assets 475,617 439,353
Deferred income taxes 1,848 5,616
Property, Plant and Equipment 909,254 898,251
Less allowances for depreciation, depletion, and amortization (675,039) (647,233)
Property, plant, and equipment—net 234,215 251,018
Operating lease, right-of-use asset 25,054 0
Intangible assets 6,692 6,461
Other assets 17,452 7,236
Goodwill 78,961 90,657
Total Assets 839,839 800,341
Current liabilities    
Short-term debt 857 823
Accounts payable 43,675 49,622
Salaries and wages 40,069 47,501
Other liabilities and accrued items 35,549 33,301
Income taxes 1,637 2,615
Unearned revenue 5,188 5,918
Total current liabilities 126,975 139,780
Other long-term liabilities 11,021 14,764
Operating lease liabilities 19,453 0
Finance lease liabilities 17,535 15,221
Retirement and post-employment benefits 31,026 38,853
Unearned income 29,270 32,563
Long-term income taxes 3,121 2,993
Deferred income taxes 2,175 195
Long-term debt 1,467 2,066
Serial preferred stock (no par value; 5,000 authorized shares, none issued) 0 0
Common stock (no par value; 60,000 authorized shares, issued shares of 27,148 at September 27 and December 31) 247,651 234,704
Retained earnings 577,409 548,374
Common stock in treasury (187,464) (175,426)
Accumulated other comprehensive loss (43,858) (58,234)
Other equity 4,058 4,488
Total shareholders' equity 597,796 553,906
Total Liabilities and Shareholders’ Equity $ 839,839 $ 800,341
v3.19.3
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Thousands, $ / shares in Thousands
Sep. 27, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Serial preferred stock, par value (in dollars per share) $ 0 $ 0
Serial preferred stock, shares authorized 5,000 5,000
Serial preferred stock, shares issued 0 0
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, shares authorized 60,000 60,000
Common stock, shares, issued 27,148 27,148
v3.19.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Cash flows from operating activities:    
Net income $ 35,909 $ 41,674
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation, depletion, and amortization 31,955 26,506
Amortization of deferred financing costs in interest expense 720 720
Stock-based compensation expense (non-cash) 5,230 3,782
Deferred income tax expense (benefit) 5,725 (5,341)
Impairment charges 14,141 0
Net curtailment/settlements 3,296 359
Changes in assets and liabilities:    
Decrease (increase) in accounts receivable (36,146) (10,274)
Decrease (increase) in inventory 22,089 19,754
Decrease (increase) in prepaid and other current assets (416) 4,648
Increase (decrease) in accounts payable and accrued expenses (14,114) (10,290)
Increase (decrease) in unearned revenue (728) 2,365
Increase (decrease) in interest and taxes payable (1,499) 5,557
Domestic pension plan contributions (4,500) (38,000)
Other-net (2,126) 7,783
Net cash used in operating activities 59,536 49,243
Cash flows from investing activities:    
Payments for purchase of property, plant, and equipment (18,193) (21,809)
Payments for mine development (1,903) (5,192)
Proceeds from sale of property, plant, and equipment 17 26
Net cash used in investing activities (20,079) (26,975)
Cash flows from financing activities:    
Repayment of long-term debt (599) (513)
Principal payments under finance lease obligations 894 573
Cash dividends paid (6,612) (6,262)
Repurchase of common stock (199) 0
Payments of withholding taxes for stock-based compensation awards (4,832) (3,006)
Deferred financing costs (2,018) 0
Net cash used in financing activities (15,154) (10,354)
Effects of exchange rate changes (422) (146)
Net change in cash and cash equivalents 23,881 11,768
Cash and cash equivalents at beginning of period 70,645 41,844
Cash and cash equivalents at end of period $ 94,526 $ 53,612
v3.19.3
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Shares
Common Shares Held In Treasury
Common Stock
Retained Earnings
Common Stock In Treasury
Accumulated Other Comprehensive Income (Loss)
Other Equity
Beginning balance (in shares) at Dec. 31, 2017   20,107            
Beginning balances (in Treasury shares) at Dec. 31, 2017     (7,042)          
Beginning balances at Dec. 31, 2017 $ 494,981     $ 223,484 $ 536,116 $ (166,128) $ (102,937) $ 4,446
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 41,674     0 41,674 0 0 0
Other comprehensive income (loss) 4,645     0 0 0 4,645 0
Net curtailment/settlements 359     0 0 0 359 0
Tax Cuts and Jobs Act of 2017 Reclassification From Aoci to Retained Earnings 0     0 (575) 0 575 0
Cumulative effect of accounting change 425     0 425 0 0 0
Cash dividends declared (6,262)     0 (6,262) 0 0 0
Stock-based compensation activity (in shares)   192 193          
Stock-based compensation activity 3,782     9,294 (28) (5,484) 0 0
Payments of withholding taxes for stock-based compensation awards (in shares)   (58) (58)          
Payments of withholding taxes for stock-based compensation awards (3,006)     0 0 (3,006) 0 0
Directors' deferred compensation 145 $ 3 $ 3 68 0 86 0 (9)
Ending balance (in shares) at Sep. 28, 2018   20,244            
Ending balances (in Treasury shares) at Sep. 28, 2018     (6,904)          
Ending balances at Sep. 28, 2018 536,743     232,846 571,350 (174,532) (97,358) 4,437
Beginning balance (in shares) at Jun. 29, 2018   20,236            
Beginning balances (in Treasury shares) at Jun. 29, 2018     (6,912)          
Beginning balances at Jun. 29, 2018 515,741     230,763 553,523 (173,825) (99,106) 4,386
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 19,966     0 19,966 0 0 0
Other comprehensive income (loss) 1,389     0 0 0 1,389 0
Net curtailment/settlements 359     0 0 0 359 0
Cash dividends declared (2,125)     0 (2,125) 0 0 0
Stock-based compensation activity (in shares)   11 12          
Stock-based compensation activity 1,618     2,074 (14) (442) 0 0
Payments of withholding taxes for stock-based compensation awards (in shares)   (5) (5)          
Payments of withholding taxes for stock-based compensation awards (241)     0 0 (241) 0 0
Directors' deferred compensation 36 $ 2 $ 1 9 0 (24) 0 51
Ending balance (in shares) at Sep. 28, 2018   20,244            
Ending balances (in Treasury shares) at Sep. 28, 2018     (6,904)          
Ending balances at Sep. 28, 2018 536,743     232,846 571,350 (174,532) (97,358) 4,437
Beginning balance (in shares) at Dec. 31, 2018   20,242            
Beginning balances (in Treasury shares) at Dec. 31, 2018     (6,906)          
Beginning balances at Dec. 31, 2018 553,906     234,704 548,374 (175,426) (58,234) 4,488
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 35,909     0 35,909 0 0 0
Other comprehensive income (loss) 11,080     0 0 0 11,080 0
Net curtailment/settlements 3,296     0 0 0 3,296 0
Cumulative effect of accounting change (179)     0 (179) 0 0 0
Cash dividends declared (6,612)     0 (6,612) 0 0 0
Stock-based compensation activity (in shares)   252 252          
Stock-based compensation activity 5,230     12,882 (83) (7,569) 0 0
Payments of withholding taxes for stock-based compensation awards (in shares)   (89) (89)          
Payments of withholding taxes for stock-based compensation awards (4,832)     0 0 (4,832) 0 0
Repurchase of shares (in shares)   (5) (5)          
Repurchase of shares (199)     0 0 (199) 0 0
Directors' deferred compensation 197 $ 3 $ 3 65 0 562 0 (430)
Ending balance (in shares) at Sep. 27, 2019   20,403            
Ending balances (in Treasury shares) at Sep. 27, 2019     (6,745)          
Ending balances at Sep. 27, 2019 597,796     247,651 577,409 (187,464) (43,858) 4,058
Beginning balance (in shares) at Jun. 28, 2019   20,399            
Beginning balances (in Treasury shares) at Jun. 28, 2019     (6,749)          
Beginning balances at Jun. 28, 2019 594,785     245,785 576,211 (187,224) (43,978) 3,991
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 3,463     0 3,463 0 0 0
Other comprehensive income (loss) 120     0 0 0 120 0
Cash dividends declared (2,244)     0 (2,244) 0 0 0
Stock-based compensation activity (in shares)   5 5          
Stock-based compensation activity 1,689     1,836 (21) (126) 0 0
Payments of withholding taxes for stock-based compensation awards (in shares)   (2) (2)          
Payments of withholding taxes for stock-based compensation awards (69)     0 0 (69) 0 0
Directors' deferred compensation 52 $ 1 $ 1 30 0 (45) 0 67
Ending balance (in shares) at Sep. 27, 2019   20,403            
Ending balances (in Treasury shares) at Sep. 27, 2019     (6,745)          
Ending balances at Sep. 27, 2019 $ 597,796     $ 247,651 $ 577,409 $ (187,464) $ (43,858) $ 4,058
v3.19.3
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Statement of Stockholders' Equity [Abstract]        
Cash dividends declared (per share) $ 0.110 $ 0.105 $ 0.325 $ 0.310
v3.19.3
Accounting Policies
9 Months Ended
Sep. 27, 2019
Accounting Policies [Abstract]  
Accounting Policies Accounting Policies

Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior periods have been reclassified to conform to the 2019 consolidated financial statement presentation.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2018 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year.
New Pronouncements Adopted: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 (Topic 842), Leases, which eliminates the off-balance-sheet accounting for leases. This guidance requires lessees to report their operating leases as both an asset and liability on the balance sheet and disclose key information about leasing arrangements. The Company adopted this guidance as of January 1, 2019 using the modified retrospective method and applied it retrospectively through a cumulative-effect adjustment to retained earnings. The Company applied the transitional package of practical expedients allowed by the standard to not reassess the identification, classification, and initial direct costs of leases commencing before this ASU's effective date; however, the Company did not elect the hindsight transitional practical expedient. The Company also applied the practical expedient to not separate lease and non-lease components to new leases as well as existing leases through transition. The Company made an accounting policy election not to apply recognition requirements of the guidance to short-term leases.

Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with legacy generally accepted accounting principles.

The Company recorded a net reduction to opening retained earnings of $0.2 million as of January 1, 2019 due to the cumulative impact of adopting Topic 842, with the impact primarily related to derecognition of a built-to-suit lease. Refer to Note J for additional disclosures relating to the Company's leasing arrangements.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which intended to simplify the subsequent measurement of goodwill. This ASU eliminates the requirement for an entity to calculate the implied fair value of goodwill in measuring an impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The Company adopted this guidance as of January 1, 2019, and the adoption did not have a material effect on the Company's consolidated financial statements. Refer to Note F for additional disclosures related to goodwill.
In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The Company adopted this guidance as of January 1, 2019, and the adoption did not have a material effect on the Company’s consolidated financial statements.

New Pronouncements Issued: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. This ASU requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. The standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. The Company is currently assessing the effect that this ASU will have on its financial position, results of operations, and disclosures.
No other recently issued or effective ASUs had, or are expected to have, a material effect on the Company's results of operations, financial condition, or liquidity.
v3.19.3
Segment Reporting
9 Months Ended
Sep. 27, 2019
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
 
The Company has the following reportable segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Company’s reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance.
Performance Alloys and Composites produces strip and bulk form alloy products, strip metal products with clad inlay and overlay metals, beryllium-based metals, beryllium, and aluminum metal matrix composites, in rod, sheet, foil, and a variety of customized forms, beryllia ceramics, and bulk metallic glass materials.
Advanced Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, and ultra-fine wire.
Precision Coatings produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials.
The Other reportable segment includes unallocated corporate costs and assets.

(Thousands)
 
Performance
Alloys and
Composites
 
Advanced Materials
 
Precision Coatings
 
Other
 
Total
Third Quarter 2019
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
130,704

 
$
147,650

 
$
27,625

 
$

 
$
305,979

Intersegment sales 
 

 
17,161

 

 

 
17,161

Operating profit (loss)
 
18,780

 
6,202

 
(11,198
)
 
(7,495
)
 
6,289

Third Quarter 2018
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
124,103

 
$
144,072

 
$
29,018

 
$

 
$
297,193

Intersegment sales
 
2

 
13,265

 

 

 
13,267

Operating profit (loss)
 
16,728

 
6,882

 
3,499

 
(8,443
)
 
18,666

 
 
 
 
 
 
 
 
 
 
 
First Nine Months 2019
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
393,048

 
$
424,913

 
$
87,302

 
$

 
$
905,263

Intersegment sales
 
15

 
53,634

 

 

 
53,649

Operating profit (loss)
 
57,066

 
19,421

 
(5,184
)
 
(20,877
)
 
50,426

First Nine Months 2018
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
372,104

 
$
447,941

 
$
89,700

 
$

 
$
909,745

Intersegment sales
 
33

 
36,317

 

 

 
36,350

Operating profit (loss)
 
38,898

 
18,352

 
9,107

 
(19,248
)
 
47,109



The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2019 and 2018, respectively:
 (Thousands)

Performance Alloys and Composites

Advanced Materials

Precision Coatings

Other

Total
Third Quarter 2019










End Market










Semiconductor

$
1,220


$
107,883


$


$


$
109,103

Industrial

28,353


8,302


3,365




40,020

Aerospace and Defense

27,653


1,779


5,303




34,735

Consumer Electronics

18,399


395


5,613




24,407

Automotive

16,071


3,012


296




19,379

Energy

10,629


20,911






31,540

Telecom and Data Center

14,964


835






15,799

Other

13,415


4,533


13,048




30,996

    Total

$
130,704


$
147,650


$
27,625


$


$
305,979












Third Quarter 2018










End Market










Semiconductor

$
1,381


$
104,806


$
269


$


$
106,456

Industrial

26,812


9,269


3,338




39,419

Aerospace and Defense

19,840


910


5,203




25,953

Consumer Electronics

14,964


149


4,730




19,843

Automotive

25,292


1,707


398




27,397

Energy

12,395


19,338






31,733

Telecom and Data Center

17,530


951






18,481

Other

5,889


6,942


15,080




27,911

    Total

$
124,103


$
144,072


$
29,018


$


$
297,193




 (Thousands)
 
Performance Alloys and Composites
 
Advanced Materials
 
Precision Coatings
 
Other
 
Total
First Nine Months 2019
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
Semiconductor
 
$
4,489

 
$
314,607

 
$
205

 
$

 
$
319,301

Industrial
 
83,368

 
23,934

 
11,358

 

 
118,660

Aerospace and Defense
 
80,774

 
4,397

 
14,924

 

 
100,095

Consumer Electronics
 
54,617

 
1,100

 
13,530

 

 
69,247

Automotive
 
53,348

 
6,035

 
882

 

 
60,265

Energy
 
33,026

 
59,136

 

 

 
92,162

Telecom and Data Center
 
50,800

 
1,749

 

 

 
52,549

Other
 
32,626

 
13,955

 
46,403

 

 
92,984

    Total
 
$
393,048

 
$
424,913

 
$
87,302

 
$

 
$
905,263


 
 
 
 
 
 
 
 
 
 
First Nine Months 2018
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
Semiconductor
 
$
3,768

 
$
333,797

 
$
1,240

 
$

 
$
338,805

Industrial
 
85,389

 
25,002

 
9,237

 

 
119,628

Aerospace and Defense
 
64,086

 
2,912

 
14,847

 

 
81,845

Consumer Electronics
 
46,419

 
775

 
14,021

 

 
61,215

Automotive
 
72,065

 
5,890

 
1,089

 

 
79,044

Energy
 
30,007

 
53,045

 

 

 
83,052

Telecom and Data Center
 
50,177

 
1,982

 

 

 
52,159

Other
 
20,193

 
24,538

 
49,266

 

 
93,997

    Total
 
$
372,104

 
$
447,941

 
$
89,700

 
$

 
$
909,745



Intersegment sales are eliminated in consolidation.
v3.19.3
Revenue Recognition
9 Months Ended
Sep. 27, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue Recognition

Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue, in an amount that reflects the consideration to which it expects to be entitled, upon satisfaction of a performance obligation, by transferring control over a product to the customer. Control over the product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product.

Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at September 27, 2019. Remaining performance obligations include non-cancelable purchase orders and customer contracts. The guidance provides certain practical expedients that limit this requirement. As such, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

After considering the practical expedient at September 27, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $21.6 million.

Contract Balances: The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:

(Thousands)
 
September 27, 2019
 
December 31, 2018
 
$ change
 
% change
Accounts receivable, trade
 
$
149,957

 
$
124,498

 
$
25,459

 
20
 %
Unbilled receivables
 
16,206

 
4,619

 
11,587

 
251
 %
Unearned revenue
 
5,188

 
5,918

 
(730
)
 
(12
)%


Accounts receivable, trade represents payments due from customers relating to the transfer of the Company’s products and services. The Company believes that its receivables are collectible and appropriate allowances for doubtful accounts have been recorded. Impairment losses (bad debt) incurred relating to our receivables were immaterial during the third quarter and first nine months of 2019.

Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are normally billed and collected within one year. Billings made on contracts are recorded as a reduction of unbilled receivables.

Unearned revenue is recorded for consideration received from customers in advance of satisfaction of the related performance obligations. The Company recognized approximately $5.0 million of the unearned amounts as revenue during the first nine months of 2019.

As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component because the period between the transfer of a product or service to a customer and when the customer pays for that product or service will be one year or less. The Company does not include extended payment terms in its contracts with customers.
v3.19.3
Other-net
9 Months Ended
Sep. 27, 2019
Other Income and Expenses [Abstract]  
Other-net Other-net
Other-net expense for the third quarter and first nine months of of 2019 and 2018 is summarized as follows: 
 
 
Third Quarter Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 28,
 
Sept. 27,
 
Sept. 28,
(Thousands)
 
2019
 
2018
 
2019
 
2018
Metal consignment fees
 
$
1,936

 
$
2,503

 
$
7,252

 
$
7,520

Amortization of intangible assets
 
375

 
524

 
1,133

 
1,858

Foreign currency loss
 
469

 
140

 
853

 
1,359

Net loss on disposal of fixed assets
 
1

 
14

 
143

 
37

Rental income
 
(29
)
 
(119
)
 
(87
)
 
(378
)
Other items
 
190

 
85

 
660

 
(12
)
Total
 
$
2,942

 
$
3,147

 
$
9,954

 
$
10,384


v3.19.3
Restructuring
9 Months Ended
Sep. 27, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block] Restructuring

In the third quarter of 2019, the Company initiated a restructuring plan in the Large Area Coatings (LAC) business (a reporting unit in the Precision Coatings segment) to reduce headcount, idle certain machinery and equipment, and exit a facility in Windsor, Connecticut. Costs associated with this plan also included severance and related costs for approximately 19 employees.

In addition, in the third quarter of 2019, the Company completed other cost reduction actions in order to align costs with commensurate business levels. These actions were accomplished through elimination of vacant positions, consolidation of roles,
and staff reduction. Costs associated with these actions within the Other segment included severance associated with approximately seven employees and other related costs.
These costs are presented in the Consolidated Statements of Income as follows:
 
 
Third Quarter Ended
 
Nine Months Ended
(Thousands)
 
Sept. 27, 2019
 
Sept. 28, 2018
 
Sept. 27, 2019
 
Sept. 28, 2018
Cost of sales
 
$
286

 
$

 
$
286

 
$

Selling, general, and administrative (SG&A) expense
 
499

 

 
499

 

Total
 
$
785

 
$

 
$
785

 
$


Remaining severance payments related to these initiatives of $0.6 million are reflected within Other liabilities and accrued items in the Consolidated Balance Sheets. The Company does not expect to incur additional costs related to these initiatives.
v3.19.3
Goodwill
9 Months Ended
Sep. 27, 2019
Goodwill Disclosure [Abstract]  
Goodwill Goodwill
A summary of changes in goodwill by reportable segment is as follows:
(Thousands)
 
Performance Alloys and Composites
 
Advanced Materials
 
Precision Coatings
 
Total
Balance at December 31, 2018
 
$
1,899

 
$
50,276

 
$
38,482

 
$
90,657

Impairment charge
 

 

 
(11,560
)
 
(11,560
)
Other
 

 
(136
)
 

 
(136
)
Balance at September 27, 2019
 
$
1,899

 
$
50,140

 
$
26,922

 
$
78,961


Goodwill is reviewed annually for impairment or more frequently if impairment indicators arise. The Company conducts its annual goodwill impairment assessment as of the first day of the fourth quarter, or more frequently under certain circumstances. Goodwill is assigned to the reporting unit, which is the operating segment level or one level below the operating segment.
During the third quarter of 2019, the LAC reporting unit began to experience a decline in sales volume from a significant customer. Based on an assessment that the decline in sales volume was expected to continue, the Company initiated a restructuring plan at the end of September to reduce LAC’s cost structure. Refer to Note E for further details of the restructuring plan. The Company considered these factors to be impairment indicators. As a result, the Company performed an interim impairment analysis as of September 27, 2019 related to the LAC reporting unit. The Company first reviewed long-lived assets which resulted in an impairment charge of $2.6 million. The Company then performed a goodwill impairment analysis which resulted in an $11.6 million charge. The Company estimated fair value using a discounted cash flow analysis for goodwill and estimated market values for other assets. These non-cash charges relating to goodwill and other assets were recorded in Goodwill impairment charges and Asset impairment charges, respectively, in the Consolidated Statements of Income.
v3.19.3
Income Taxes
9 Months Ended
Sep. 27, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes

The Company's effective tax rate for the third quarter of 2019 and 2018 was 39.5% and (15.7)%, respectively, and 21.1% and 4.0% for the first nine months of 2019 and 2018, respectively.

The effective tax rate for the third quarter and first nine months of 2019 differed from the statutory tax rate primarily due to discrete income tax expense of $1.8 million and $1.3 million recorded in the third quarter and first nine months of 2019, respectively. The discrete income tax expense recorded in the third quarter of 2019 consisted of $0.8 million of expense related to an impairment of goodwill and a $1.0 million 2018 U.S. Federal income tax return to provision tax expense adjustment.
The effective tax rate for the third quarter and first nine months of 2018 differed from the statutory tax rate primarily due to discrete income tax benefits of $6.1 million and $7.1 million recorded in the third quarter and first nine months of 2018, respectively. The discrete income tax benefits were comprised primarily of $10.4 million related to Staff Accounting Bulletin (SAB) No. 118 adjustments, partially offset by $2.2 million of expense for a valuation allowance related to deferred tax assets that were not likely to be realized for one of the Company's controlled foreign corporations, and a $1.5 million 2017 U.S. Federal income tax return to provision tax expense adjustment.
v3.19.3
Earnings Per Share
9 Months Ended
Sep. 27, 2019
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share (EPS)
The following table sets forth the computation of basic and diluted EPS:
 
 
Third Quarter Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 28,
 
Sept. 27,
 
Sept. 28,
(Thousands, except per share amounts)
 
2019
 
2018
 
2019
 
2018
Numerator for basic and diluted EPS:
 
 
 
 
 
 
 
 
Net income
 
$
3,463

 
$
19,966

 
$
35,909

 
$
41,674

Denominator:
 
 
 
 
 
 
 
 
Denominator for basic EPS:
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
20,401

 
20,241

 
20,351

 
20,199

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock appreciation rights
 
59

 
168

 
80

 
183

Restricted stock units
 
75

 
86

 
73

 
84

Performance-based restricted stock units
 
142

 
153

 
141

 
141

Diluted potential common shares
 
276

 
407

 
294

 
408

Denominator for diluted EPS:
 

 

 
 
 
 
Adjusted weighted-average shares outstanding
 
20,677

 
20,648

 
20,645

 
20,607

Basic EPS
 
$
0.17

 
$
0.99

 
$
1.76

 
$
2.06

Diluted EPS
 
$
0.17

 
$
0.97

 
$
1.74

 
$
2.02



Securities totaling 70,562 and 65,112 for the quarters ended September 27, 2019 and September 28, 2018, respectively, and 127,759 and 65,112 for the nine months ended September 27, 2019 and September 28, 2018, respectively, were excluded from the dilution calculation as the effect would have been anti-dilutive.
v3.19.3
Inventories
9 Months Ended
Sep. 27, 2019
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories on the Consolidated Balance Sheets are summarized as follows:
 
 
Sept. 27,
 
December 31,
(Thousands)
 
2019
 
2018
Raw materials and supplies
 
$
36,399

 
$
33,182

Work in process
 
182,015

 
195,879

Finished goods
 
22,516

 
30,643

Subtotal
 
$
240,930

 
$
259,704

Less: LIFO reserve balance
 
48,974

 
44,833

Inventories
 
$
191,956

 
$
214,871


The liquidation of last in, first out (LIFO) inventory layers decreased cost of sales by $0.5 million and $0.4 million in the third quarter and first nine months of 2019, respectively, compared to an increase to cost of sales of $0.2 million and $0.3 million in the third quarter and first nine months of 2018, respectively.
The Company maintains the majority of the precious metals and copper used in production on a consignment basis in order to reduce our exposure to metal price movements and to reduce our working capital investment. The notional value of off-balance sheet precious metals and copper was $302.9 million as of September 27, 2019 versus $316.1 million as of December 31, 2018.
v3.19.3
Leases
9 Months Ended
Sep. 27, 2019
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block] Leases
The Company leases warehouse and manufacturing real estate, and manufacturing and computer equipment under operating leases with lease terms ranging up to 25 years. Several operating lease agreements contain options to extend the lease term and/or options for early termination. The lease term consists of the non-cancelable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. The weighted average remaining lease term for the Company's operating and finance leases as of September 27, 2019 was 4.83 years and 19.52 years, respectively.

The discount rate implicit within the leases is generally not determinable, and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for leases is determined based on the lease term in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure the Company's operating and finance lease liabilities as of September 27, 2019 was 5.57% and 5.31%, respectively.

The components of operating and finance lease cost for the third quarter and first nine months of 2019 were as follows:
 
 
Third Quarter Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 27,
(Thousands)
 
2019
 
2019
Components of lease expense
 
 
 
 
Operating lease cost
 
$
2,449

 
$
7,452

 
 
 
 
 
Finance lease cost
 
 
 
 
Amortization of right-of-use assets
 
353

 
1,063

Interest on lease liabilities
 
256

 
778

Total lease cost
 
$
3,058

 
$
9,293



Operating lease expense amounted to $2.4 million and $2.8 million during the third quarter of 2019 and 2018, respectively, and $7.5 million and $8.9 million during the first nine months of 2019 and 2018, respectively. The Company straight-lines its expense of fixed payments for operating leases over the lease term and expenses the variable lease payments in the period incurred. These variable lease payments are not included in the calculation of right-of-use assets or lease liabilities.
Supplemental balance sheet information related to the Company's operating and finance leases as of September 27, 2019 was as follows:
 
 
Sept. 27,
(Thousands)
 
2019
Supplemental balance sheet information
 
 
 
 
 
Operating Leases
 
 
Operating lease right-of-use assets
 
$
25,054

Other liabilities and accrued items
 
6,908

Operating lease liabilities
 
19,453

 
 
 
Finance Leases
 
 
Property, plant, and equipment
 
$
25,830

Allowances for depreciation, depletion, and amortization
 
(3,331
)
Finance lease assets, net
 
$
22,499

Other liabilities and accrued items
 
$
1,243

Finance lease liabilities
 
17,535

Total principal payable on finance leases
 
$
18,778



Future maturities of the Company's lease liabilities as of September 27, 2019 are as follows:
 
 
Finance
 
Operating
(Thousands)
 
Leases
 
Leases
2019
 
$
552

 
$
2,129

2020
 
2,208

 
7,726

2021
 
2,208

 
6,661

2022
 
2,208

 
4,715

2023
 
1,498

 
3,785

2024 and thereafter
 
21,729

 
5,210

Total lease payments
 
30,403

 
30,226

Less amount of lease payment representing interest
 
11,625

 
3,865

Total present value of lease payments

 
$
18,778

 
$
26,361



Supplemental cash flow information related to leases for the first nine months of 2019 was as follows:
 
 
Nine Months Ended
 
 
Sept. 27,
(Thousands)
 
2019
Supplemental cash flow information
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
11,763

Operating cash flows from finance leases
 
778

Financing cash flows from finance leases
 
894


v3.19.3
Pensions and Other Post-employment Benefits
9 Months Ended
Sep. 27, 2019
Retirement Benefits [Abstract]  
Pensions and Other Post-employment Benefits Pensions and Other Post-employment Benefits
The following is a summary of the net periodic benefit cost for the third quarter and first nine months of 2019 and 2018 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan.
 

Pension Benefits

Other Benefits
 

Third Quarter Ended

Third Quarter Ended


Sept. 27,

Sept. 28,

Sept. 27,

Sept. 28,
(Thousands)

2019

2018

2019

2018
Components of net periodic benefit cost (benefit)








Service cost

$
1,359


$
1,674


$
18


$
27

Interest cost

1,500


2,397


100


99

Expected return on plan assets

(2,134
)

(3,697
)




Amortization of prior service benefit

120


(31
)

(374
)

(374
)
Amortization of net loss (gain)

762


1,959


(24
)


Net periodic benefit cost (benefit)

$
1,607


$
2,302


$
(280
)

$
(248
)
Net curtailments/settlements
 

 
359

 

 

Total net benefit cost (benefit)
 
$
1,607

 
$
2,661

 
$
(280
)
 
$
(248
)

 
 
Pension Benefits
 
Other Benefits
 
 
Nine Months Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 28,
 
Sept. 27,
 
Sept. 28,
(Thousands)
 
2019
 
2018
 
2019
 
2018
Components of net periodic benefit cost (benefit)
 
 
 
 
 
 
 
 
Service cost
 
$
4,117

 
$
5,022

 
$
53

 
$
83

Interest cost
 
4,404

 
7,191

 
299

 
297

Expected return on plan assets
 
(6,424
)
 
(11,091
)
 

 

Amortization of prior service benefit
 
362

 
(92
)
 
(1,123
)
 
(1,123
)
Amortization of net loss (gain)
 
2,193

 
5,878

 
(70
)
 

Net periodic benefit cost (benefit)
 
$
4,652

 
$
6,908

 
$
(841
)
 
$
(743
)
Net curtailments/settlements
 
3,296

 
359

 

 

Total net benefit cost (benefit)
 
$
7,948

 
$
7,267

 
$
(841
)
 
$
(743
)
The Company made contributions to the domestic defined benefit pension plan of $4.5 million and $38.0 million in the first nine months of 2019 and 2018, respectively.
The Company reports the service cost component of net periodic benefit cost in the same line item as other compensation costs in operating expenses and the non-service cost components of net periodic benefit cost in Other non-operating expenses.
In May 2019, the Company's Board of Directors approved changes to the U.S. defined benefit pension plan. The Company will freeze the pay and service amounts used to calculate pension benefits for active participants in the pension plan as of January 1, 2020. The Company recognized a non-cash pre-tax pension curtailment charge of $3.3 million associated with the plan amendment during the first nine months of 2019.
v3.19.3
Accumulated Other Comprehensive Income
9 Months Ended
Sep. 27, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the third quarter and first nine months of 2019 and 2018 are as follows:
 
 
Gains and Losses on Cash Flow Hedges
 
 
 
 
 
 
(Thousands)
 
Foreign Currency
 
Precious Metals
 
Copper
 
Total
 
Pension and Post-Employment Benefits
 
Foreign Currency Translation
 
Total
Balance at June 28, 2019

$
1,420


$
(458
)

$
(134
)
 
$
828


$
(40,050
)

$
(4,756
)

$
(43,978
)
Other comprehensive income before reclassifications

354


(730
)

(271
)
 
(647
)



(463
)

(1,110
)
Amounts reclassified from accumulated other comprehensive income

(3
)

343


413

 
753


609




1,362

Net current period other comprehensive income (loss) before tax

351


(387
)

142

 
106


609


(463
)

252

Deferred taxes

80


(66
)

10

 
24


108




132

Net current period other comprehensive income (loss) after tax

271


(321
)

132

 
82


501


(463
)

120

Balance at September 27, 2019

$
1,691


$
(779
)

$
(2
)
 
$
910


$
(39,549
)

$
(5,219
)

$
(43,858
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 29, 2018
 
$
1,582

 
$
269

 
$

 
$
1,851

 
$
(97,018
)
 
$
(3,939
)
 
$
(99,106
)
Other comprehensive income (loss) before reclassifications
 
121

 
330

 

 
451

 

 
116

 
567

Amounts reclassified from accumulated other comprehensive income
 
(169
)
 
(119
)
 

 
(288
)
 
1,935

 

 
1,647

Net current period other comprehensive income (loss) before tax
 
(48
)
 
211

 

 
163

 
1,935

 
116

 
2,214

Deferred taxes
 
(11
)
 
49

 

 
38

 
428

 

 
466

Net current period other comprehensive income (loss) after tax
 
(37
)
 
162

 

 
125

 
1,507

 
116

 
1,748

Balance at September 28, 2018
 
$
1,545

 
$
431

 
$

 
$
1,976

 
$
(95,511
)
 
$
(3,823
)
 
$
(97,358
)





 
 
Gains and Losses on Cash Flow Hedges
 
 
 
 
 
 
(Thousands)
 
Foreign Currency
 
Precious Metals
 
Copper
 
Total
 
Pension and Post-Employment Benefits
 
Foreign Currency Translation
 
Total
Balance at December 31, 2018
 
$
1,263

 
$
79

 
$
(441
)
 
$
901

 
$
(54,543
)
 
$
(4,592
)
 
$
(58,234
)
Other comprehensive income before reclassifications
 
602

 
(1,366
)
 
33

 
(731
)
 
14,224

 
(627
)
 
12,866

Amounts reclassified from accumulated other comprehensive income
 
(47
)
 
281

 
505

 
739

 
5,050

 

 
5,789

Net current period other comprehensive income (loss) before tax
 
555

 
(1,085
)
 
538

 
8

 
19,274

 
(627
)
 
18,655

Deferred taxes
 
127

 
(227
)
 
99

 
(1
)
 
4,280

 

 
4,279

Net current period other comprehensive income (loss) after tax
 
428

 
(858
)
 
439

 
9

 
14,994

 
(627
)
 
14,376

Balance at September 27, 2019
 
$
1,691

 
$
(779
)
 
$
(2
)
 
$
910

 
$
(39,549
)
 
$
(5,219
)
 
$
(43,858
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
 
$
959

 
$
(196
)
 
$

 
$
763

 
$
(99,592
)
 
$
(4,108
)
 
$
(102,937
)
Other comprehensive income (loss) before reclassifications
 
(206
)
 
774

 

 
568

 

 
285

 
853

Amounts reclassified from accumulated other comprehensive income
 
250

 
40

 

 
290

 
5,183

 

 
5,473

Net current period other comprehensive income (loss) before tax
 
44

 
814

 

 
858

 
5,183

 
285

 
6,326

Deferred taxes
 
(542
)
 
187

 

 
(355
)
 
1,102

 

 
747

Net current period other comprehensive income (loss) after tax
 
586

 
627

 

 
1,213

 
4,081

 
285

 
5,579

Balance at September 28, 2018
 
$
1,545

 
$
431

 
$

 
$
1,976

 
$
(95,511
)
 
$
(3,823
)
 
$
(97,358
)

Reclassifications from accumulated other comprehensive income of gains and losses on foreign currency cash flow hedges are recorded in Net sales in the Consolidated Statements of Income. Reclassifications from accumulated other comprehensive income of gains and losses on precious metal cash flow hedges are recorded in Cost of sales in the Consolidated Statements of Income. Refer to Note O for additional details on cash flow hedges.
Reclassifications from accumulated other comprehensive income for pension and post-employment benefits are included in the computation of the net periodic pension and post-employment benefit expense. Refer to Note K for additional details on pension and post-employment expenses.
v3.19.3
Stock-based Compensation Expense
9 Months Ended
Sep. 27, 2019
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense Stock-based Compensation Expense
Stock-based compensation expense, which includes awards settled in shares and in cash, was $2.5 million and $8.7 million in the third quarter and first nine months of 2019, respectively, compared to $4.2 million and $9.4 million in same periods of 2018.
The Company granted 73,461 stock appreciation rights (SARs) to certain employees during the first nine months of 2019. The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the nine months ended September 27, 2019 were $58.30 and $17.76, respectively. The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model:
Risk-free interest rate
 
2.47
%
Dividend yield
 
0.7
%
Volatility
 
31.7
%
Expected term (in years)
 
5.2


The Company granted 63,665 stock-settled restricted stock units (RSUs) to certain employees and 11,048 stock-settled RSUs to non-employee directors during the first nine months of 2019. The Company measures the fair value of stock-settled RSUs based on the closing market price of a share of Materion common stock on the date of the grant. The weighted-average fair value per share was $58.30 and $68.79 for stock-settled RSUs granted to employees and non-employee directors, respectively, during the nine months ended September 27, 2019. RSUs are expensed over the vesting period of three years for employees and one year for non-employee directors.
The Company granted stock-settled performance-based restricted stock units (PRSUs) to certain employees in the first nine months of 2019. The weighted-average fair value of the stock-settled PRSUs was $69.84 per share and will be expensed over the vesting period of three years. The final payout to the employees for all PRSUs will be based upon the Company’s return on invested capital and the total return to shareholders over the vesting period relative to a peer group’s performance over the same period.
At September 27, 2019, unamortized compensation cost related to the unvested portion of all stock-based awards was approximately $11.2 million, and is expected to be recognized over the remaining vesting period of the respective grants.
v3.19.3
Fair Value of Financial Instruments
9 Months Ended
Sep. 27, 2019
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company measures and records financial instruments at fair value. A fair value hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels:
Level 1 — Quoted market prices in active markets for identical assets and liabilities;
Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable; and
Level 3 — Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use.
The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of September 27, 2019 and December 31, 2018: 
 
 
 
 
 
 
 
 
 
(Thousands)
 
Total Carrying Value in the Consolidated Balance Sheets
 
Quoted Prices
in  Active
Markets  for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred compensation investments
 
$
3,151

 
$
2,156

 
$
3,151

 
$
2,156

 
$

 
$

 
$

 
$

Foreign currency forward contracts
 
478

 
246

 

 

 
478

 
246

 

 

Precious metal swaps
 
18

 
237

 

 

 
18

 
237

 

 

Copper swaps
 
10

 

 

 

 
10

 

 

 

Total
 
$
3,657

 
$
2,639

 
$
3,151

 
$
2,156

 
$
506

 
$
483


$


$

Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred compensation liability
 
$
3,151

 
$
2,156

 
$
3,151

 
$
2,156

 
$

 
$

 
$

 
$

Foreign currency forward contracts
 
45

 
432

 

 

 
45

 
432

 

 

Precious metal swaps
 
1,001

 
135

 

 

 
1,001

 
135

 

 

Copper swaps
 
41

 
569

 

 

 
41

 
569

 

 

Total
 
$
4,238

 
$
3,292

 
$
3,151

 
$
2,156

 
$
1,087

 
$
1,136

 
$

 
$


The Company uses a market approach to value the assets and liabilities for financial instruments in the table above. Outstanding contracts are valued through models that utilize market observable inputs, including both spot and forward prices, for the same underlying currencies and metals. The carrying values of the other working capital items and debt in the Consolidated Balance Sheets approximate fair values as of September 27, 2019 and December 31, 2018.
v3.19.3
Derivative Instruments and Hedging Activity
9 Months Ended
Sep. 27, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activity Derivative Instruments and Hedging Activity
The Company uses derivative contracts to hedge portions of its foreign currency exposures and uses derivatives to hedge a portion of its precious metal and copper exposures. The objectives and strategies for using derivatives in these areas are as follows:
Foreign Currency.    The Company sells a portion of its products to overseas customers in their local currencies, primarily the euro and yen. The Company secures foreign currency derivatives, mainly forward contracts and options, to hedge these anticipated sales transactions. The purpose of the hedge program is to protect against the reduction in the dollar value of foreign currency sales from adverse exchange rate movements. Should the dollar strengthen significantly, the decrease in the translated value of the foreign currency sales should be partially offset by gains on the hedge contracts. Depending upon the methods used, hedge contracts may limit the benefits from a weakening U.S. dollar.
The use of forward contracts locks in a firm rate and eliminates any downside risk from an adverse rate movement as well as any benefit from a favorable rate movement. The Company may from time to time choose to hedge with options or a tandem of options, known as a collar. These hedging techniques can limit or eliminate the downside risk but can allow for some or all of the benefit from a favorable rate movement to be realized. Unlike a forward contract, a premium is paid for an option; collars, which are a combination of a put and call option, may have a net premium but can be structured to be cash neutral. The Company will primarily hedge with forward contracts due to the relationship between the cash outlay and the level of risk.
The use of foreign currency derivative contracts is governed by policies approved by the Audit Committee of the Board of Directors. A team consisting of senior financial managers reviews the estimated exposure levels, as defined by budgets,
forecasts, and other internal data, and determines the timing, amounts, and instruments to use to hedge that exposure within the confines of the policy. Management analyzes the effective hedged rates and the actual and projected gains and losses on the hedging transactions against the program objectives, targeted rates, and levels of risk assumed. Hedge contracts are typically layered in at different times for a specified exposure period in order to minimize the impact of rate movements.
Precious Metals.    The Company maintains the majority of its precious metal production requirements on consignment in order to reduce its working capital investment and the exposure to metal price movements. When a precious metal product is fabricated and ready for shipment to the customer, the metal is purchased out of consignment at the current market price. The price paid by the Company forms the basis for the price charged to the customer. This methodology allows for changes in either direction in the market prices of the precious metals used by the Company to be passed through to the customer, and reduces the impact changes in prices could have on the Company's margins and operating profit. The consigned metal is owned by financial institutions that charge the Company a financing fee based upon the current value of the metal on hand.
In certain instances, a customer may want to establish the price for the precious metal at the time the sales order is placed rather than at the time of shipment. Setting the sales price at a different date than when the material would be purchased potentially creates an exposure to movements in the market price of the metal. Therefore, in these limited situations, the Company may elect to enter into a forward contract to purchase precious metal. The forward contract allows the Company to purchase metal at a fixed price on a specific future date. The price in the forward contract serves as the basis for the price to be charged to the customer. By doing so, the selling price and purchase price are matched, and the Company's price exposure is reduced.
The Company refines precious metal-containing materials for its customers and typically will purchase the refined metal from the customer at current market prices. In limited circumstances, the customer may want to fix the price to be paid at the time of the order as opposed to when the material is refined. The customer may also want to fix the price for a set period of time. The Company may then elect to enter into a hedge contract, either a forward contract or a swap, to fix the price for the estimated quantity of metal to be purchased, thereby reducing the exposure to adverse movements in the price of the metal.
In certain circumstances, the Company also refines metal from the customer and may retain a portion of the refined metal as payment. The Company may elect to enter into a forward contract to sell precious metal to reduce the Company's price exposure.
The Company may from time to time elect to purchase precious metal and hold in inventory rather than on consignment due to potential credit line limitations or other factors. These purchases are typically held for a short duration. A forward contract will be secured at the time of the purchase to fix the price to be used when the metal is transferred back to the consignment line, thereby limiting any price exposure during the time when the metal was owned.
Copper. We also use copper in our production processes. When possible, fluctuations in the purchase price of copper are passed on to customers in the form of price adders or reductions. While over time our price exposure to copper is generally in balance, there can be a lag between the change in our cost and the pass-through to our customers, resulting in higher or lower margins in a given period. To mitigate this impact, we hedge a portion of this pricing risk.
The Company will only enter into a derivative contract if there is an underlying identified exposure. Contracts are typically held until maturity. The Company does not engage in derivative trading activities and does not use derivatives for speculative purposes. The Company only uses currency hedge contracts that are denominated in the same currency as the underlying exposure and precious metal hedge contracts denominated in the same metal as the underlying exposure.
All derivatives are recorded on the balance sheet at fair value. If the derivative is designated and effective as a cash flow hedge, changes in the fair value of the derivative are recognized in other comprehensive income (OCI) until the hedged item is recognized in earnings. If a derivative is not a hedge, changes in the fair value are adjusted through income. The fair values of the outstanding derivatives are recorded on the balance sheet as assets (if the derivatives are in a gain position) or liabilities (if the derivatives are in a loss position). The fair values will also be classified as short-term or long-term depending upon their maturity dates.

The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments (on a gross basis) and balance sheet classification as of September 27, 2019 and December 31, 2018:
 
 
September 27, 2019
 
December 31, 2018
(Thousands)
 
Notional
Amount
 
Fair
Value
 
Notional
Amount
 
Fair
Value
Foreign currency forward contracts
 
 
 
 
 
 
 
 
Prepaid expenses
 
$
4,316

 
$
95

 
$
8,767

 
$
244

Other liabilities and accrued items
 
18,644

 
36

 
8,771

 
249


These outstanding foreign currency derivatives were related to balance sheet hedges and intercompany loans. Other-net included $0.3 million of foreign currency gains relating to these derivatives during both the third quarter and the first nine months of 2019 and included $0.4 million and $1.6 million of foreign currency gains during the third quarter and first nine months of 2018, respectively.
The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of September 27, 2019 and December 31, 2018:
 
 
September 27, 2019
 
December 31, 2018
(Thousands)
 
Notional
Amount
 
Fair
Value
 
Notional
Amount
 
Fair
Value
Prepaid expenses
 
 
 
 
 
 
 
 
Foreign currency forward contracts - yen
 
$
1,000

 
$
14

 
$

 
$

Foreign currency forward contracts - euro
 
8,082

 
369

 
725

 
2

Precious metal swaps
 
156

 
4

 
4,533

 
237

Copper swaps
 
517

 
10

 

 

Total
 
9,755

 
397

 
5,258

 
239

 
 
 
 
 
 
 
 
 
Other assets
 
 
 
 
 
 
 
 
Precious metal swaps
 
626

 
14

 

 

Total
 
626

 
14

 

 

 
 
 
 
 
 
 
 
 
Other liabilities and accrued items
 
 
 
 
 
 
 
 
Foreign currency forward contracts - yen
 
944

 
9

 
1,264

 
17

Foreign currency forward contracts - euro
 

 

 
19,158

 
166

Precious metal swaps
 
9,342

 
949

 
2,864

 
135

Copper swaps
 
2,686

 
41

 
11,170

 
569

Total
 
12,972

 
999

 
34,456

 
887

 
 
 
 
 
 
 
 
 
Other long-term liabilities
 
 
 
 
 
 
 
 
Precious metal swaps
 
1,169

 
52

 

 

Total
 
$
24,522

 
$
640

 
$
39,714

 
$
648


All of these contracts were designated and effective as cash flow hedges. The Company expects to relieve substantially the entire balance in OCI as of September 27, 2019 to the Consolidated Statements of Income within the next 15-month period. Refer to Note L for additional OCI details.
The following table summarizes the amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification as of the third quarter and first nine months of of 2019
 
 
 
 
Third Quarter Ended
 
Nine Months Ended
(Thousands)
 
 
 
Sept. 27, 2019
 
Sept. 27, 2019
Hedging relationship
 
Line item
 
 
 
 
Foreign currency forward contracts
 
Net sales
 
$
(3
)
 
$
(47
)
Precious metal swaps
 
Cost of sales
 
343

 
281

Copper swaps
 
Cost of sales
 
413

 
505

Total
 
 
 
$
753

 
$
739


v3.19.3
Contingencies
9 Months Ended
Sep. 27, 2019
Loss Contingency [Abstract]  
Commitments and Contingencies Disclosure [Text Block] Contingencies
Legal Proceedings. For general information regarding legal proceedings relating to Chronic Beryllium Disease Claims, refer to Note S ("Contingencies and Commitments") in the Company's 2018 Annual Report on Form 10-K.
One beryllium case, originally filed and dismissed during 2015, but reversed and remanded in 2016 to the trial court, was outstanding as of December 31, 2018. That case was settled for an immaterial amount in the third quarter of 2019 and dismissed.
In addition, during the third quarter of 2019, one new beryllium case was filed, although the Company was not served until the fourth quarter of 2019. The Company does not expect the resolution of this matter to have a material impact on the consolidated financial statements.
Other Litigation. The Company is party to several pending legal proceedings and claims arising in the normal course of business. The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matters. To the extent there is a reasonable possibility that the losses could exceed any amounts accrued, the Company will adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made.
Environmental Proceedings. The Company has an active environmental compliance program and records reserves for the probable cost of identified environmental remediation projects. The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies. The undiscounted reserve balance was $6.1 million and $6.5 million at September 27, 2019 and December 31, 2018, respectively. Environmental projects tend to be long-term, and the final actual remediation costs may differ from the amounts currently recorded.
v3.19.3
Basis of Accounting (Policies)
9 Months Ended
Sep. 27, 2019
Accounting Policies [Abstract]  
Basis of Accounting

Basis of Presentation: In management’s opinion, the accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior periods have been reclassified to conform to the 2019 consolidated financial statement presentation.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2018 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year.
v3.19.3
New Pronouncements (Policies)
9 Months Ended
Sep. 27, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
New Accounting Pronouncements
New Pronouncements Adopted: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 (Topic 842), Leases, which eliminates the off-balance-sheet accounting for leases. This guidance requires lessees to report their operating leases as both an asset and liability on the balance sheet and disclose key information about leasing arrangements. The Company adopted this guidance as of January 1, 2019 using the modified retrospective method and applied it retrospectively through a cumulative-effect adjustment to retained earnings. The Company applied the transitional package of practical expedients allowed by the standard to not reassess the identification, classification, and initial direct costs of leases commencing before this ASU's effective date; however, the Company did not elect the hindsight transitional practical expedient. The Company also applied the practical expedient to not separate lease and non-lease components to new leases as well as existing leases through transition. The Company made an accounting policy election not to apply recognition requirements of the guidance to short-term leases.

Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with legacy generally accepted accounting principles.

The Company recorded a net reduction to opening retained earnings of $0.2 million as of January 1, 2019 due to the cumulative impact of adopting Topic 842, with the impact primarily related to derecognition of a built-to-suit lease. Refer to Note J for additional disclosures relating to the Company's leasing arrangements.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which intended to simplify the subsequent measurement of goodwill. This ASU eliminates the requirement for an entity to calculate the implied fair value of goodwill in measuring an impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The Company adopted this guidance as of January 1, 2019, and the adoption did not have a material effect on the Company's consolidated financial statements. Refer to Note F for additional disclosures related to goodwill.
In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The Company adopted this guidance as of January 1, 2019, and the adoption did not have a material effect on the Company’s consolidated financial statements.

New Pronouncements Issued: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. This ASU requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. The standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. The Company is currently assessing the effect that this ASU will have on its financial position, results of operations, and disclosures.
No other recently issued or effective ASUs had, or are expected to have, a material effect on the Company's results of operations, financial condition, or liquidity.
v3.19.3
Revenue Recognition Accounting Policy (Policies)
9 Months Ended
Sep. 27, 2019
Accounting Policies [Abstract]  
Revenue [Policy Text Block]

Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue, in an amount that reflects the consideration to which it expects to be entitled, upon satisfaction of a performance obligation, by transferring control over a product to the customer. Control over the product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product.

Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at September 27, 2019. Remaining performance obligations include non-cancelable purchase orders and customer contracts. The guidance provides certain practical expedients that limit this requirement. As such, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
v3.19.3
Segment Reporting (Tables)
9 Months Ended
Sep. 27, 2019
Segment Reporting [Abstract]  
Segment Reporting

(Thousands)
 
Performance
Alloys and
Composites
 
Advanced Materials
 
Precision Coatings
 
Other
 
Total
Third Quarter 2019
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
130,704

 
$
147,650

 
$
27,625

 
$

 
$
305,979

Intersegment sales 
 

 
17,161

 

 

 
17,161

Operating profit (loss)
 
18,780

 
6,202

 
(11,198
)
 
(7,495
)
 
6,289

Third Quarter 2018
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
124,103

 
$
144,072

 
$
29,018

 
$

 
$
297,193

Intersegment sales
 
2

 
13,265

 

 

 
13,267

Operating profit (loss)
 
16,728

 
6,882

 
3,499

 
(8,443
)
 
18,666

 
 
 
 
 
 
 
 
 
 
 
First Nine Months 2019
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
393,048

 
$
424,913

 
$
87,302

 
$

 
$
905,263

Intersegment sales
 
15

 
53,634

 

 

 
53,649

Operating profit (loss)
 
57,066

 
19,421

 
(5,184
)
 
(20,877
)
 
50,426

First Nine Months 2018
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
372,104

 
$
447,941

 
$
89,700

 
$

 
$
909,745

Intersegment sales
 
33

 
36,317

 

 

 
36,350

Operating profit (loss)
 
38,898

 
18,352

 
9,107

 
(19,248
)
 
47,109


Disaggregation of Revenue

The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2019 and 2018, respectively:
 (Thousands)

Performance Alloys and Composites

Advanced Materials

Precision Coatings

Other

Total
Third Quarter 2019










End Market










Semiconductor

$
1,220


$
107,883


$


$


$
109,103

Industrial

28,353


8,302


3,365




40,020

Aerospace and Defense

27,653


1,779


5,303




34,735

Consumer Electronics

18,399


395


5,613




24,407

Automotive

16,071


3,012


296




19,379

Energy

10,629


20,911






31,540

Telecom and Data Center

14,964


835






15,799

Other

13,415


4,533


13,048




30,996

    Total

$
130,704


$
147,650


$
27,625


$


$
305,979












Third Quarter 2018










End Market










Semiconductor

$
1,381


$
104,806


$
269


$


$
106,456

Industrial

26,812


9,269


3,338




39,419

Aerospace and Defense

19,840


910


5,203




25,953

Consumer Electronics

14,964


149


4,730




19,843

Automotive

25,292


1,707


398




27,397

Energy

12,395


19,338






31,733

Telecom and Data Center

17,530


951






18,481

Other

5,889


6,942


15,080




27,911

    Total

$
124,103


$
144,072


$
29,018


$


$
297,193




 (Thousands)
 
Performance Alloys and Composites
 
Advanced Materials
 
Precision Coatings
 
Other
 
Total
First Nine Months 2019
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
Semiconductor
 
$
4,489

 
$
314,607

 
$
205

 
$

 
$
319,301

Industrial
 
83,368

 
23,934

 
11,358

 

 
118,660

Aerospace and Defense
 
80,774

 
4,397

 
14,924

 

 
100,095

Consumer Electronics
 
54,617

 
1,100

 
13,530

 

 
69,247

Automotive
 
53,348

 
6,035

 
882

 

 
60,265

Energy
 
33,026

 
59,136

 

 

 
92,162

Telecom and Data Center
 
50,800

 
1,749

 

 

 
52,549

Other
 
32,626

 
13,955

 
46,403

 

 
92,984

    Total
 
$
393,048

 
$
424,913

 
$
87,302

 
$

 
$
905,263


 
 
 
 
 
 
 
 
 
 
First Nine Months 2018
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
Semiconductor
 
$
3,768

 
$
333,797

 
$
1,240

 
$

 
$
338,805

Industrial
 
85,389

 
25,002

 
9,237

 

 
119,628

Aerospace and Defense
 
64,086

 
2,912

 
14,847

 

 
81,845

Consumer Electronics
 
46,419

 
775

 
14,021

 

 
61,215

Automotive
 
72,065

 
5,890

 
1,089

 

 
79,044

Energy
 
30,007

 
53,045

 

 

 
83,052

Telecom and Data Center
 
50,177

 
1,982

 

 

 
52,159

Other
 
20,193

 
24,538

 
49,266

 

 
93,997

    Total
 
$
372,104

 
$
447,941

 
$
89,700

 
$

 
$
909,745


v3.19.3
Revenue Recognition (Tables)
9 Months Ended
Sep. 27, 2019
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability
Contract Balances: The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:

(Thousands)
 
September 27, 2019
 
December 31, 2018
 
$ change
 
% change
Accounts receivable, trade
 
$
149,957

 
$
124,498

 
$
25,459

 
20
 %
Unbilled receivables
 
16,206

 
4,619

 
11,587

 
251
 %
Unearned revenue
 
5,188

 
5,918

 
(730
)
 
(12
)%

v3.19.3
Other-net (Tables)
9 Months Ended
Sep. 27, 2019
Other Income and Expenses [Abstract]  
Summary of Other-Net Expense
Other-net expense for the third quarter and first nine months of of 2019 and 2018 is summarized as follows: 
 
 
Third Quarter Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 28,
 
Sept. 27,
 
Sept. 28,
(Thousands)
 
2019
 
2018
 
2019
 
2018
Metal consignment fees
 
$
1,936

 
$
2,503

 
$
7,252

 
$
7,520

Amortization of intangible assets
 
375

 
524

 
1,133

 
1,858

Foreign currency loss
 
469

 
140

 
853

 
1,359

Net loss on disposal of fixed assets
 
1

 
14

 
143

 
37

Rental income
 
(29
)
 
(119
)
 
(87
)
 
(378
)
Other items
 
190

 
85

 
660

 
(12
)
Total
 
$
2,942

 
$
3,147

 
$
9,954

 
$
10,384


v3.19.3
Restructuring (Tables)
9 Months Ended
Sep. 27, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs [Table Text Block]
These costs are presented in the Consolidated Statements of Income as follows:
 
 
Third Quarter Ended
 
Nine Months Ended
(Thousands)
 
Sept. 27, 2019
 
Sept. 28, 2018
 
Sept. 27, 2019
 
Sept. 28, 2018
Cost of sales
 
$
286

 
$

 
$
286

 
$

Selling, general, and administrative (SG&A) expense
 
499

 

 
499

 

Total
 
$
785

 
$

 
$
785

 
$


v3.19.3
Goodwill (Tables)
9 Months Ended
Sep. 27, 2019
Goodwill Disclosure [Abstract]  
Schedule of Goodwill [Table Text Block]
A summary of changes in goodwill by reportable segment is as follows:
(Thousands)
 
Performance Alloys and Composites
 
Advanced Materials
 
Precision Coatings
 
Total
Balance at December 31, 2018
 
$
1,899

 
$
50,276

 
$
38,482

 
$
90,657

Impairment charge
 

 

 
(11,560
)
 
(11,560
)
Other
 

 
(136
)
 

 
(136
)
Balance at September 27, 2019
 
$
1,899

 
$
50,140

 
$
26,922

 
$
78,961


v3.19.3
Earnings Per Share (Tables)
9 Months Ended
Sep. 27, 2019
Earnings Per Share [Abstract]  
Computation of basic and diluted earnings per share
The following table sets forth the computation of basic and diluted EPS:
 
 
Third Quarter Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 28,
 
Sept. 27,
 
Sept. 28,
(Thousands, except per share amounts)
 
2019
 
2018
 
2019
 
2018
Numerator for basic and diluted EPS:
 
 
 
 
 
 
 
 
Net income
 
$
3,463

 
$
19,966

 
$
35,909

 
$
41,674

Denominator:
 
 
 
 
 
 
 
 
Denominator for basic EPS:
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
20,401

 
20,241

 
20,351

 
20,199

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock appreciation rights
 
59

 
168

 
80

 
183

Restricted stock units
 
75

 
86

 
73

 
84

Performance-based restricted stock units
 
142

 
153

 
141

 
141

Diluted potential common shares
 
276

 
407

 
294

 
408

Denominator for diluted EPS:
 

 

 
 
 
 
Adjusted weighted-average shares outstanding
 
20,677

 
20,648

 
20,645

 
20,607

Basic EPS
 
$
0.17

 
$
0.99

 
$
1.76

 
$
2.06

Diluted EPS
 
$
0.17

 
$
0.97

 
$
1.74

 
$
2.02


v3.19.3
Inventories (Tables)
9 Months Ended
Sep. 27, 2019
Inventory Disclosure [Abstract]  
Summary of Inventories
Inventories on the Consolidated Balance Sheets are summarized as follows:
 
 
Sept. 27,
 
December 31,
(Thousands)
 
2019
 
2018
Raw materials and supplies
 
$
36,399

 
$
33,182

Work in process
 
182,015

 
195,879

Finished goods
 
22,516

 
30,643

Subtotal
 
$
240,930

 
$
259,704

Less: LIFO reserve balance
 
48,974

 
44,833

Inventories
 
$
191,956

 
$
214,871


v3.19.3
Leases (Tables)
9 Months Ended
Sep. 27, 2019
Leases [Abstract]  
Lease, Cost [Table Text Block]
The components of operating and finance lease cost for the third quarter and first nine months of 2019 were as follows:
 
 
Third Quarter Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 27,
(Thousands)
 
2019
 
2019
Components of lease expense
 
 
 
 
Operating lease cost
 
$
2,449

 
$
7,452

 
 
 
 
 
Finance lease cost
 
 
 
 
Amortization of right-of-use assets
 
353

 
1,063

Interest on lease liabilities
 
256

 
778

Total lease cost
 
$
3,058

 
$
9,293


Schedule Of Future Minimum Lease Payments For Capital Leases And Operating Leases [Table Text Block]
Future maturities of the Company's lease liabilities as of September 27, 2019 are as follows:
 
 
Finance
 
Operating
(Thousands)
 
Leases
 
Leases
2019
 
$
552

 
$
2,129

2020
 
2,208

 
7,726

2021
 
2,208

 
6,661

2022
 
2,208

 
4,715

2023
 
1,498

 
3,785

2024 and thereafter
 
21,729

 
5,210

Total lease payments
 
30,403

 
30,226

Less amount of lease payment representing interest
 
11,625

 
3,865

Total present value of lease payments

 
$
18,778

 
$
26,361


ScheduleOfSupplementalCashFlowInformationRelatedToLeasesTableTextBlock [Table Text Block]
Supplemental cash flow information related to leases for the first nine months of 2019 was as follows:
 
 
Nine Months Ended
 
 
Sept. 27,
(Thousands)
 
2019
Supplemental cash flow information
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
11,763

Operating cash flows from finance leases
 
778

Financing cash flows from finance leases
 
894


ScheduleOfSupplementalBalanceSheetInformationRelatedToLeasesTableTextBlock [Table Text Block]
Supplemental balance sheet information related to the Company's operating and finance leases as of September 27, 2019 was as follows:
 
 
Sept. 27,
(Thousands)
 
2019
Supplemental balance sheet information
 
 
 
 
 
Operating Leases
 
 
Operating lease right-of-use assets
 
$
25,054

Other liabilities and accrued items
 
6,908

Operating lease liabilities
 
19,453

 
 
 
Finance Leases
 
 
Property, plant, and equipment
 
$
25,830

Allowances for depreciation, depletion, and amortization
 
(3,331
)
Finance lease assets, net
 
$
22,499

Other liabilities and accrued items
 
$
1,243

Finance lease liabilities
 
17,535

Total principal payable on finance leases
 
$
18,778


v3.19.3
Pensions and Other Post-employment Benefits (Tables)
9 Months Ended
Sep. 27, 2019
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
The following is a summary of the net periodic benefit cost for the third quarter and first nine months of 2019 and 2018 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan.
 

Pension Benefits

Other Benefits
 

Third Quarter Ended

Third Quarter Ended


Sept. 27,

Sept. 28,

Sept. 27,

Sept. 28,
(Thousands)

2019

2018

2019

2018
Components of net periodic benefit cost (benefit)








Service cost

$
1,359


$
1,674


$
18


$
27

Interest cost

1,500


2,397


100


99

Expected return on plan assets

(2,134
)

(3,697
)




Amortization of prior service benefit

120


(31
)

(374
)

(374
)
Amortization of net loss (gain)

762


1,959


(24
)


Net periodic benefit cost (benefit)

$
1,607


$
2,302


$
(280
)

$
(248
)
Net curtailments/settlements
 

 
359

 

 

Total net benefit cost (benefit)
 
$
1,607

 
$
2,661

 
$
(280
)
 
$
(248
)

 
 
Pension Benefits
 
Other Benefits
 
 
Nine Months Ended
 
Nine Months Ended
 
 
Sept. 27,
 
Sept. 28,
 
Sept. 27,
 
Sept. 28,
(Thousands)
 
2019
 
2018
 
2019
 
2018
Components of net periodic benefit cost (benefit)
 
 
 
 
 
 
 
 
Service cost
 
$
4,117

 
$
5,022

 
$
53

 
$
83

Interest cost
 
4,404

 
7,191

 
299

 
297

Expected return on plan assets
 
(6,424
)
 
(11,091
)
 

 

Amortization of prior service benefit
 
362

 
(92
)
 
(1,123
)
 
(1,123
)
Amortization of net loss (gain)
 
2,193

 
5,878

 
(70
)
 

Net periodic benefit cost (benefit)
 
$
4,652

 
$
6,908

 
$
(841
)
 
$
(743
)
Net curtailments/settlements
 
3,296

 
359

 

 

Total net benefit cost (benefit)
 
$
7,948

 
$
7,267

 
$
(841
)
 
$
(743
)
v3.19.3
Accumulated Other Comprehensive Income (Tables)
9 Months Ended
Sep. 27, 2019
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the third quarter and first nine months of 2019 and 2018 are as follows:
 
 
Gains and Losses on Cash Flow Hedges
 
 
 
 
 
 
(Thousands)
 
Foreign Currency
 
Precious Metals
 
Copper
 
Total
 
Pension and Post-Employment Benefits
 
Foreign Currency Translation
 
Total
Balance at June 28, 2019

$
1,420


$
(458
)

$
(134
)
 
$
828


$
(40,050
)

$
(4,756
)

$
(43,978
)
Other comprehensive income before reclassifications

354


(730
)

(271
)
 
(647
)



(463
)

(1,110
)
Amounts reclassified from accumulated other comprehensive income

(3
)

343


413

 
753


609




1,362

Net current period other comprehensive income (loss) before tax

351


(387
)

142

 
106


609


(463
)

252

Deferred taxes

80


(66
)

10

 
24


108




132

Net current period other comprehensive income (loss) after tax

271


(321
)

132

 
82


501


(463
)

120

Balance at September 27, 2019

$
1,691


$
(779
)

$
(2
)
 
$
910


$
(39,549
)

$
(5,219
)

$
(43,858
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 29, 2018
 
$
1,582

 
$
269

 
$

 
$
1,851

 
$
(97,018
)
 
$
(3,939
)
 
$
(99,106
)
Other comprehensive income (loss) before reclassifications
 
121

 
330

 

 
451

 

 
116

 
567

Amounts reclassified from accumulated other comprehensive income
 
(169
)
 
(119
)
 

 
(288
)
 
1,935

 

 
1,647

Net current period other comprehensive income (loss) before tax
 
(48
)
 
211

 

 
163

 
1,935

 
116

 
2,214

Deferred taxes
 
(11
)
 
49

 

 
38

 
428

 

 
466

Net current period other comprehensive income (loss) after tax
 
(37
)
 
162

 

 
125

 
1,507

 
116

 
1,748

Balance at September 28, 2018
 
$
1,545

 
$
431

 
$

 
$
1,976

 
$
(95,511
)
 
$
(3,823
)
 
$
(97,358
)





 
 
Gains and Losses on Cash Flow Hedges
 
 
 
 
 
 
(Thousands)
 
Foreign Currency
 
Precious Metals
 
Copper
 
Total
 
Pension and Post-Employment Benefits
 
Foreign Currency Translation
 
Total
Balance at December 31, 2018
 
$
1,263

 
$
79

 
$
(441
)
 
$
901

 
$
(54,543
)
 
$
(4,592
)
 
$
(58,234
)
Other comprehensive income before reclassifications
 
602

 
(1,366
)
 
33

 
(731
)
 
14,224

 
(627
)
 
12,866

Amounts reclassified from accumulated other comprehensive income
 
(47
)
 
281

 
505

 
739

 
5,050

 

 
5,789

Net current period other comprehensive income (loss) before tax
 
555

 
(1,085
)
 
538

 
8

 
19,274

 
(627
)
 
18,655

Deferred taxes
 
127

 
(227
)
 
99

 
(1
)
 
4,280

 

 
4,279

Net current period other comprehensive income (loss) after tax
 
428

 
(858
)
 
439

 
9

 
14,994

 
(627
)
 
14,376

Balance at September 27, 2019
 
$
1,691

 
$
(779
)
 
$
(2
)
 
$
910

 
$
(39,549
)
 
$
(5,219
)
 
$
(43,858
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
 
$
959

 
$
(196
)
 
$

 
$
763

 
$
(99,592
)
 
$
(4,108
)
 
$
(102,937
)
Other comprehensive income (loss) before reclassifications
 
(206
)
 
774

 

 
568

 

 
285

 
853

Amounts reclassified from accumulated other comprehensive income
 
250

 
40

 

 
290

 
5,183

 

 
5,473

Net current period other comprehensive income (loss) before tax
 
44

 
814

 

 
858

 
5,183

 
285

 
6,326

Deferred taxes
 
(542
)
 
187

 

 
(355
)
 
1,102

 

 
747

Net current period other comprehensive income (loss) after tax
 
586

 
627

 

 
1,213

 
4,081

 
285

 
5,579

Balance at September 28, 2018
 
$
1,545

 
$
431

 
$

 
$
1,976

 
$
(95,511
)
 
$
(3,823
)
 
$
(97,358
)

v3.19.3
Stock-based Compensation Expense Tables (Tables)
9 Months Ended
Sep. 27, 2019
Share-based Payment Arrangement [Abstract]  
Schedule Of Share Based Payment Award SARs Valuation Assumptions [Table Text Block] The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model:
Risk-free interest rate
 
2.47
%
Dividend yield
 
0.7
%
Volatility
 
31.7
%
Expected term (in years)
 
5.2


v3.19.3
Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 27, 2019
Fair Value Disclosures [Abstract]  
Summary of Fair Value Information and Derivative Financial Instruments
The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of September 27, 2019 and December 31, 2018: 
 
 
 
 
 
 
 
 
 
(Thousands)
 
Total Carrying Value in the Consolidated Balance Sheets
 
Quoted Prices
in  Active
Markets  for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred compensation investments
 
$
3,151

 
$
2,156

 
$
3,151

 
$
2,156

 
$

 
$

 
$

 
$

Foreign currency forward contracts
 
478

 
246

 

 

 
478

 
246

 

 

Precious metal swaps
 
18

 
237

 

 

 
18

 
237

 

 

Copper swaps
 
10

 

 

 

 
10

 

 

 

Total
 
$
3,657

 
$
2,639

 
$
3,151

 
$
2,156

 
$
506

 
$
483


$


$

Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred compensation liability
 
$
3,151

 
$
2,156

 
$
3,151

 
$
2,156

 
$

 
$

 
$

 
$

Foreign currency forward contracts
 
45

 
432

 

 

 
45

 
432

 

 

Precious metal swaps
 
1,001

 
135

 

 

 
1,001

 
135

 

 

Copper swaps
 
41

 
569

 

 

 
41

 
569

 

 

Total
 
$
4,238

 
$
3,292

 
$
3,151

 
$
2,156

 
$
1,087

 
$
1,136

 
$

 
$


v3.19.3
Derivative Instruments and Hedging Activity Tables (Tables)
9 Months Ended
Sep. 27, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments NonHedging [Table Text Block]
The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives not designated as hedging instruments (on a gross basis) and balance sheet classification as of September 27, 2019 and December 31, 2018:
 
 
September 27, 2019
 
December 31, 2018
(Thousands)
 
Notional
Amount
 
Fair
Value
 
Notional
Amount
 
Fair
Value
Foreign currency forward contracts
 
 
 
 
 
 
 
 
Prepaid expenses
 
$
4,316

 
$
95

 
$
8,767

 
$
244

Other liabilities and accrued items
 
18,644

 
36

 
8,771

 
249


Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]
The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of September 27, 2019 and December 31, 2018:
 
 
September 27, 2019
 
December 31, 2018
(Thousands)
 
Notional
Amount
 
Fair
Value
 
Notional
Amount
 
Fair
Value
Prepaid expenses
 
 
 
 
 
 
 
 
Foreign currency forward contracts - yen
 
$
1,000

 
$
14

 
$

 
$

Foreign currency forward contracts - euro
 
8,082

 
369

 
725

 
2

Precious metal swaps
 
156

 
4

 
4,533

 
237

Copper swaps
 
517

 
10

 

 

Total
 
9,755

 
397

 
5,258

 
239

 
 
 
 
 
 
 
 
 
Other assets
 
 
 
 
 
 
 
 
Precious metal swaps
 
626

 
14

 

 

Total
 
626

 
14

 

 

 
 
 
 
 
 
 
 
 
Other liabilities and accrued items
 
 
 
 
 
 
 
 
Foreign currency forward contracts - yen
 
944

 
9

 
1,264

 
17

Foreign currency forward contracts - euro
 

 

 
19,158

 
166

Precious metal swaps
 
9,342

 
949

 
2,864

 
135

Copper swaps
 
2,686

 
41

 
11,170

 
569

Total
 
12,972

 
999

 
34,456

 
887

 
 
 
 
 
 
 
 
 
Other long-term liabilities
 
 
 
 
 
 
 
 
Precious metal swaps
 
1,169

 
52

 

 

Total
 
$
24,522

 
$
640

 
$
39,714

 
$
648


Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following table summarizes the amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification as of the third quarter and first nine months of of 2019
 
 
 
 
Third Quarter Ended
 
Nine Months Ended
(Thousands)
 
 
 
Sept. 27, 2019
 
Sept. 27, 2019
Hedging relationship
 
Line item
 
 
 
 
Foreign currency forward contracts
 
Net sales
 
$
(3
)
 
$
(47
)
Precious metal swaps
 
Cost of sales
 
343

 
281

Copper swaps
 
Cost of sales
 
413

 
505

Total
 
 
 
$
753

 
$
739


v3.19.3
New Prouncements Adopted (Details)
$ in Millions
Jan. 01, 2019
USD ($)
Adjustments for New Accounting Pronouncement [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative Effect on Retained Earnings, Net of Tax $ 0.2
v3.19.3
Segment Reporting (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Segment Reporting Information        
Net sales $ 305,979 $ 297,193 $ 905,263 $ 909,745
Intersegment sales 17,161 13,267 53,649 36,350
Operating profit (loss) 6,289 18,666 50,426 47,109
Performance Alloys and Composites        
Segment Reporting Information        
Net sales 130,704 124,103 393,048 372,104
Intersegment sales 0 2 15 33
Operating profit (loss) 18,780 16,728 57,066 38,898
Advanced Materials        
Segment Reporting Information        
Net sales 147,650 144,072 424,913 447,941
Intersegment sales 17,161 13,265 53,634 36,317
Operating profit (loss) 6,202 6,882 19,421 18,352
Precision Coatings        
Segment Reporting Information        
Net sales 27,625 29,018 87,302 89,700
Intersegment sales 0 0 0 0
Operating profit (loss) (11,198) 3,499 (5,184) 9,107
Other        
Segment Reporting Information        
Net sales 0 0 0 0
Intersegment sales 0 0 0 0
Operating profit (loss) $ (7,495) $ (8,443) $ (20,877) $ (19,248)
v3.19.3
Segment Reporting (Details 1) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Disaggregation of Revenue [Line Items]        
Net sales $ 305,979 $ 297,193 $ 905,263 $ 909,745
Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 109,103 106,456 319,301 338,805
Consumer Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 24,407 19,843 69,247 61,215
Industrial Components        
Disaggregation of Revenue [Line Items]        
Net sales 40,020 39,419 118,660 119,628
Aerospace and Defense        
Disaggregation of Revenue [Line Items]        
Net sales 34,735 25,953 100,095 81,845
Energy        
Disaggregation of Revenue [Line Items]        
Net sales 31,540 31,733 92,162 83,052
Telecomm and Data Center        
Disaggregation of Revenue [Line Items]        
Net sales 15,799 18,481 52,549 52,159
Automotive Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 19,379 27,397 60,265 79,044
Other End Market        
Disaggregation of Revenue [Line Items]        
Net sales 30,996 27,911 92,984 93,997
Performance Alloys and Composites        
Disaggregation of Revenue [Line Items]        
Net sales 130,704 124,103 393,048 372,104
Performance Alloys and Composites | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 1,220 1,381 4,489 3,768
Performance Alloys and Composites | Consumer Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 18,399 14,964 54,617 46,419
Performance Alloys and Composites | Industrial Components        
Disaggregation of Revenue [Line Items]        
Net sales 28,353 26,812 83,368 85,389
Performance Alloys and Composites | Aerospace and Defense        
Disaggregation of Revenue [Line Items]        
Net sales 27,653 19,840 80,774 64,086
Performance Alloys and Composites | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 10,629 12,395 33,026 30,007
Performance Alloys and Composites | Telecomm and Data Center        
Disaggregation of Revenue [Line Items]        
Net sales 14,964 17,530 50,800 50,177
Performance Alloys and Composites | Automotive Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 16,071 25,292 53,348 72,065
Performance Alloys and Composites | Other End Market        
Disaggregation of Revenue [Line Items]        
Net sales 13,415 5,889 32,626 20,193
Advanced Materials        
Disaggregation of Revenue [Line Items]        
Net sales 147,650 144,072 424,913 447,941
Advanced Materials | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 107,883 104,806 314,607 333,797
Advanced Materials | Consumer Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 395 149 1,100 775
Advanced Materials | Industrial Components        
Disaggregation of Revenue [Line Items]        
Net sales 8,302 9,269 23,934 25,002
Advanced Materials | Aerospace and Defense        
Disaggregation of Revenue [Line Items]        
Net sales 1,779 910 4,397 2,912
Advanced Materials | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 20,911 19,338 59,136 53,045
Advanced Materials | Telecomm and Data Center        
Disaggregation of Revenue [Line Items]        
Net sales 835 951 1,749 1,982
Advanced Materials | Automotive Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 3,012 1,707 6,035 5,890
Advanced Materials | Other End Market        
Disaggregation of Revenue [Line Items]        
Net sales 4,533 6,942 13,955 24,538
Precision Coatings        
Disaggregation of Revenue [Line Items]        
Net sales 27,625 29,018 87,302 89,700
Precision Coatings | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 0 269 205 1,240
Precision Coatings | Consumer Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 5,613 4,730 13,530 14,021
Precision Coatings | Industrial Components        
Disaggregation of Revenue [Line Items]        
Net sales 3,365 3,338 11,358 9,237
Precision Coatings | Aerospace and Defense        
Disaggregation of Revenue [Line Items]        
Net sales 5,303 5,203 14,924 14,847
Precision Coatings | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Precision Coatings | Telecomm and Data Center        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Precision Coatings | Automotive Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 296 398 882 1,089
Precision Coatings | Other End Market        
Disaggregation of Revenue [Line Items]        
Net sales 13,048 15,080 46,403 49,266
Other        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Consumer Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Industrial Components        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Aerospace and Defense        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Telecomm and Data Center        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Automotive Electronics        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Other End Market        
Disaggregation of Revenue [Line Items]        
Net sales $ 0 $ 0 $ 0 $ 0
v3.19.3
Revenue Recognition (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Dec. 31, 2018
Capitalized Contract Cost [Line Items]      
Increase (decrease) in unearned revenue $ (728) $ 2,365  
Accounts receivable, trade      
Capitalized Contract Cost [Line Items]      
Accounts Receivable, Trade 149,957   $ 124,498
Change in Accounts Receivable, Trade $ 25,459    
Contract Asset Percent Change 20.00%    
Unbilled Receivables      
Capitalized Contract Cost [Line Items]      
Unbilled Contracts Receivable $ 16,206   4,619
Change in Unbilled Receivables $ 11,587    
Contract Asset Percent Change 251.00%    
Unearned revenue      
Capitalized Contract Cost [Line Items]      
Deferred Revenue $ 5,188   $ 5,918
Increase (decrease) in unearned revenue $ (730)    
Contract Liability Percent Change (12.00%)    
v3.19.3
Revenue Recognition (Details 1)
$ in Millions
9 Months Ended
Sep. 27, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Liability, Revenue Recognized $ 5.0
v3.19.3
Revenue Recognition (Details 2)
$ in Millions
Sep. 27, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue, Remaining Performance Obligation, Amount $ 21.6
v3.19.3
Other-net (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Other Income and Expenses [Abstract]        
Metal consignment fees $ 1,936 $ 2,503 $ 7,252 $ 7,520
Amortization of Intangible Assets 375 524 1,133 1,858
Foreign currency loss 469 140 853 1,359
Net loss on disposal of fixed assets 1 14 143 37
Rental Income (29) (119) (87) (378)
Other items 190 85 660 (12)
Total $ 2,942 $ 3,147 $ 9,954 $ 10,384
v3.19.3
Restructuring (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges $ 785 $ 0 $ 785 $ 0
Cost of sales        
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges 286 0 286 0
Selling, general, and administrative (SG&A) expense        
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges $ 499 $ 0 $ 499 $ 0
v3.19.3
Restructuring (Details 1)
$ in Millions
3 Months Ended
Sep. 27, 2019
USD ($)
Restructuring Cost and Reserve [Line Items]  
Remaining severance payments $ 0.6
Precision Coatings  
Restructuring Cost and Reserve [Line Items]  
Number of positions eliminated 19
Other  
Restructuring Cost and Reserve [Line Items]  
Number of positions eliminated 7
v3.19.3
Goodwill (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 31, 2018
Goodwill [Line Items]          
Impairment charge $ 11,560 $ 0 $ 11,560 $ 0  
Other     136    
Goodwill 78,961   78,961   $ 90,657
Performance Alloys and Composites          
Goodwill [Line Items]          
Impairment charge     0    
Other     0    
Goodwill 1,899   1,899   1,899
Advanced Materials          
Goodwill [Line Items]          
Impairment charge     0    
Other     136    
Goodwill 50,140   50,140   50,276
Precision Coatings          
Goodwill [Line Items]          
Impairment charge     11,560    
Other     0    
Goodwill $ 26,922   $ 26,922   $ 38,482
v3.19.3
Goodwill (Details 1) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Goodwill Disclosure [Abstract]        
Asset impairment charges $ 2,581 $ 0 $ 2,581 $ 0
Goodwill impairment charges $ 11,560 $ 0 $ 11,560 $ 0
v3.19.3
Income Taxes Details (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Income Tax Disclosure [Abstract]        
Effective income tax rate, percent 39.50% (15.70%) 21.10% 4.00%
Effective income tax rate, amount $ 1.8 $ 6.1 $ 1.3 $ 7.1
Income tax expense from goodwill impairment 0.8      
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit)       10.4
Deferred other tax expense       2.2
U.S. Federal income tax return to provision tax expense adjustment $ 1.0     $ 1.5
v3.19.3
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Numerator For Basic And Diluted EPS:        
Net income $ 3,463 $ 19,966 $ 35,909 $ 41,674
Denominator for basic EPS:        
Weighted-average shares outstanding 20,401 20,241 20,351 20,199
Effect of dilutive securities:        
Diluted potential common shares (in shares) 276 407 294 408
Denominator for diluted EPS:        
Adjusted weighted-average shares outstanding 20,677 20,648 20,645 20,607
Basic EPS (in usd per share) $ 0.17 $ 0.99 $ 1.76 $ 2.06
Diluted EPS (in usd per share) $ 0.17 $ 0.97 $ 1.74 $ 2.02
Stock Appreciation Rights (SARs)        
Effect of dilutive securities:        
Dilutive effect of share-based compensation (in shares) 59 168 80 183
Restricted Stock Units (RSUs)        
Effect of dilutive securities:        
Dilutive effect of share-based compensation (in shares) 75 86 73 84
Performance Shares        
Effect of dilutive securities:        
Dilutive effect of share-based compensation (in shares) 142 153 141 141
v3.19.3
Earnings Per Share (Details 1) - shares
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Earnings Per Share [Abstract]        
Securities excluded from diluted EPS calculation 70,562 65,112 127,759 65,112
v3.19.3
Inventories (Detail) - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 31, 2018
Principally average cost:    
Raw materials and supplies $ 36,399 $ 33,182
Work in process 182,015 195,879
Finished goods 22,516 30,643
Subtotal 240,930 259,704
Less: LIFO reserve balance 48,974 44,833
Inventories $ 191,956 $ 214,871
v3.19.3
Inventories (Details 1) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 31, 2018
Inventory Disclosure [Abstract]          
LIFO liquidation effect $ (0.5) $ 0.2 $ (0.4) $ 0.3  
Notional Amount of Nonderivative Instruments     $ 302.9   $ 316.1
v3.19.3
Components of Lease Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 27, 2019
Lease, Cost [Abstract]    
Operating lease cost $ 2,449 $ 7,452
Finance Leases    
Amortization of right-of-use assets 353 1,063
Interest on lease liabilities 256 778
Total lease cost $ 3,058 $ 9,293
v3.19.3
Future Estimated Minimum Payments Under Finance Leases and Non-Cancelable Operating Leases (Details)
$ in Thousands
Sep. 27, 2019
USD ($)
Finance Leases  
2019 $ 552
2020 2,208
2021 2,208
2022 2,208
2023 1,498
2024 and thereafter 21,729
Total minimum lease payments 30,403
Amounts representing interest 11,625
Present value of net minimum lease payments 18,778
Operating Leases  
2019 2,129
2020 7,726
2021 6,661
2022 4,715
2023 3,785
2024 and thereafter 5,210
Total minimum lease payments 30,226
Amount of lease payment representing interest 3,865
Present value of lease payments $ 26,361
v3.19.3
Leases (Details Textual) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Leases [Abstract]        
Operating Lease Term Maximum 25 years      
Operating lease expense $ 2.4 $ 2.8 $ 7.5 $ 8.9
Weighted Average Remaining Lease Term        
Operating leases 4 years 9 months 29 days   4 years 9 months 29 days  
Finance leases 19 years 6 months 7 days   19 years 6 months 7 days  
Weighted Average Discount Rate        
Operating leases 5.57%   5.57%  
Finance leases 5.31%   5.31%  
v3.19.3
Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Cash paid for amounts included in the measurement of lease liabilities    
Operating cash flows from operating leases $ 11,763  
Operating cash flows from finance leases 778  
Financing cash flows from finance leases $ 894 $ 573
v3.19.3
Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 31, 2018
Operating Leases    
Operating lease, right-of-use asset $ 25,054 $ 0
Operating Lease, Liability, Current 6,908  
Operating lease liabilities 19,453 0
Finance Leases    
Finance lease liabilities 17,535 15,221
Total principal payable on finance lease 18,778  
Property, Plant and Equipment 909,254 898,251
Allowance for depreciation, depletion and amortization (675,039) (647,233)
Finance lease assets, net 234,215 $ 251,018
Other liabilities and accrued items 1,243  
Property, Plant and Equipment [Member]    
Property, Plant and Equipment 25,830  
Allowance for depreciation, depletion and amortization (3,331)  
Finance lease assets, net $ 22,499  
v3.19.3
Pensions and Other Post-employment Benefits (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Components of net periodic benefit cost        
Net curtailment/settlements   $ 359 $ 3,296 $ 359
Pension Benefits        
Components of net periodic benefit cost        
Service cost $ 1,359 1,674 4,117 5,022
Interest cost 1,500 2,397 4,404 7,191
Expected return on plan assets (2,134) (3,697) (6,424) (11,091)
Amortization of prior service benefit 120 (31) 362 (92)
Amortization of net loss (gain) 762 1,959 2,193 5,878
Net periodic benefit cost (benefit) 1,607 2,302 4,652 6,908
Net curtailment/settlements 0 359 3,296 359
Total net benefit cost (benefit) 1,607 2,661 7,948 7,267
Other Benefits        
Components of net periodic benefit cost        
Service cost 18 27 53 83
Interest cost 100 99 299 297
Expected return on plan assets 0 0 0 0
Amortization of prior service benefit (374) (374) (1,123) (1,123)
Amortization of net loss (gain) (24) 0 (70) 0
Net periodic benefit cost (benefit) (280) (248) (841) (743)
Net curtailment/settlements 0 0 0 0
Total net benefit cost (benefit) $ (280) $ (248) $ (841) $ (743)
v3.19.3
Pensions and Other Post-employment Benefits (Detail 1) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Defined Benefit Plan Disclosure        
Pension curtailment   $ 359 $ 3,296 $ 359
Pension Benefits        
Defined Benefit Plan Disclosure        
Contributions by employer     4,500 38,000
Pension curtailment $ 0 $ 359 $ 3,296 $ 359
v3.19.3
Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Jun. 28, 2019
Dec. 31, 2018
Jun. 29, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss $ (43,858) $ (97,358) $ (43,858) $ (97,358) $ (43,978) $ (58,234) $ (99,106) $ (102,937)
Activity                
Other comprehensive income (loss) before reclassifications (1,110) 567 12,866 853        
Amounts reclassified from accumulated other comprehensive income 1,362 1,647 5,789 5,473        
Net current period other comprehensive income (loss) before tax 252 2,214 18,655 6,326        
Deferred taxes on current period activity 132 466 4,279 747        
Net current period other comprehensive income (loss) after tax 120 1,748 14,376 5,579        
Pension and Post Employment Benefits [Member]                
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss (39,549) (95,511) (39,549) (95,511) (40,050) (54,543) (97,018) (99,592)
Activity                
Other comprehensive income (loss) before reclassifications 0 0 14,224 0        
Amounts reclassified from accumulated other comprehensive income 609 1,935 5,050 5,183        
Net current period other comprehensive income (loss) before tax 609 1,935 19,274 5,183        
Deferred taxes on current period activity 108 428 4,280 1,102        
Net current period other comprehensive income (loss) after tax 501 1,507 14,994 4,081        
Foreign Currency Translation [Member]                
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss (5,219) (3,823) (5,219) (3,823) (4,756) (4,592) (3,939) (4,108)
Activity                
Other comprehensive income (loss) before reclassifications (463) 116 (627) 285        
Amounts reclassified from accumulated other comprehensive income 0 0 0 0        
Net current period other comprehensive income (loss) before tax (463) 116 (627) 285        
Deferred taxes on current period activity 0 0 0 0        
Net current period other comprehensive income (loss) after tax (463) 116 (627) 285        
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss 910 1,976 910 1,976 828 901 1,851 763
Activity                
Other comprehensive income (loss) before reclassifications (647) 451 (731) 568        
Amounts reclassified from accumulated other comprehensive income 753 (288) 739 290        
Net current period other comprehensive income (loss) before tax 106 163 8 858        
Deferred taxes on current period activity 24 38 (1) (355)        
Net current period other comprehensive income (loss) after tax 82 125 9 1,213        
Foreign currency forward contract | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss 1,691 1,545 1,691 1,545 1,420 1,263 1,582 959
Activity                
Other comprehensive income (loss) before reclassifications 354 121 602 (206)        
Amounts reclassified from accumulated other comprehensive income (3) (169) (47) 250        
Net current period other comprehensive income (loss) before tax 351 (48) 555 44        
Deferred taxes on current period activity 80 (11) 127 (542)        
Net current period other comprehensive income (loss) after tax 271 (37) 428 586        
Precious Metal Contracts [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss (779) 431 (779) 431 (458) 79 269 (196)
Activity                
Other comprehensive income (loss) before reclassifications (730) 330 (1,366) 774        
Amounts reclassified from accumulated other comprehensive income 343 (119) 281 40        
Net current period other comprehensive income (loss) before tax (387) 211 (1,085) 814        
Deferred taxes on current period activity (66) 49 (227) 187        
Net current period other comprehensive income (loss) after tax (321) 162 (858) 627        
Copper swaps | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Rollward]                
Accumulated other comprehensive loss (2) 0 (2) 0 $ (134) $ (441) $ 0 $ 0
Activity                
Other comprehensive income (loss) before reclassifications (271) 0 33 0        
Amounts reclassified from accumulated other comprehensive income 413 0 505 0        
Net current period other comprehensive income (loss) before tax 142 0 538 0        
Deferred taxes on current period activity 10 0 99 0        
Net current period other comprehensive income (loss) after tax $ 132 $ 0 $ 439 $ 0        
v3.19.3
Stock-based Compensation Expense (Detail)
9 Months Ended
Sep. 27, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Risk-free interest rate 2.47%
Dividend yield 0.70%
Volatility 31.70%
Expected term (in years) 5 years 2 months 12 days
v3.19.3
Stock-based Compensation Expense Textual (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 2.5 $ 4.2 $ 8.7 $ 9.4
Document Period End Date     Sep. 27, 2019  
Unearned Compensation $ 11.2   $ 11.2  
Stock Appreciation Rights (SARs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares granted in period     73,461  
Weighted average exercise price on SARs granted in period     $ 58.30  
Grant date fair value per unit (in usd per share)     17.76  
Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Grant date fair value per unit (in usd per share)     $ 69.84  
Vesting period     3 years  
Stock Compensation Plan [Member] | Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares granted in period     63,665  
Grant date fair value per unit (in usd per share)     $ 58.30  
Vesting period     3 years  
Director Equity Plan [Domain] | Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares granted in period     11,048  
Grant date fair value per unit (in usd per share)     $ 68.79  
Vesting period     1 year  
v3.19.3
Fair Value of Financial Instruments (Detail) - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Deferred Compensation Investment Assets $ 3,151 $ 2,156
Foreign Currency Forward Contract 478 246
Precious Metal Swaps 18 237
Copper Swaps 10 0
Total Financial Assets 3,657 2,639
Deferred Compensation Investment Related Liability 3,151 2,156
Foreign Currency Forward Contract 45 432
Precious Metal Swaps 1,001 135
Copper Swaps 41 569
Total Financial Liabilities 4,238 3,292
Fair Value, Inputs, Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Deferred Compensation Investment Assets 3,151 2,156
Foreign Currency Forward Contract 0 0
Precious Metal Swaps 0 0
Copper Swaps 0 0
Total Financial Assets 3,151 2,156
Deferred Compensation Investment Related Liability 3,151 2,156
Foreign Currency Forward Contract 0 0
Precious Metal Swaps 0 0
Copper Swaps 0 0
Total Financial Liabilities 3,151 2,156
Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Deferred Compensation Investment Assets 0 0
Foreign Currency Forward Contract 478 246
Precious Metal Swaps 18 237
Copper Swaps 10 0
Total Financial Assets 506 483
Deferred Compensation Investment Related Liability 0 0
Foreign Currency Forward Contract 45 432
Precious Metal Swaps 1,001 135
Copper Swaps 41 569
Total Financial Liabilities 1,087 1,136
Fair Value, Inputs, Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Deferred Compensation Investment Assets 0 0
Foreign Currency Forward Contract 0 0
Precious Metal Swaps 0 0
Copper Swaps 0 0
Total Financial Assets 0 0
Deferred Compensation Investment Related Liability 0 0
Foreign Currency Forward Contract 0 0
Precious Metal Swaps 0 0
Copper Swaps 0 0
Total Financial Liabilities $ 0 $ 0
v3.19.3
Derivative Instruments and Hedging Activity (Details - Not designated as hedges) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 31, 2018
Derivative Instruments, Gain (Loss)          
Gain on foreign currency derivatives recorded in earnings, net $ 300 $ 400 $ 300 $ 1,600  
Not designated as hedging instrument | Prepaid expenses | Foreign currency forward contract          
Derivative Instruments, Gain (Loss)          
Notional amount, asset 4,316   4,316   $ 8,767
Fair value, asset 95   95   244
Not designated as hedging instrument | Other liabilities and accrued items | Foreign currency forward contract          
Derivative Instruments, Gain (Loss)          
Notional amount, liability 18,644   18,644   8,771
Fair value, liability $ 36   $ 36   $ 249
v3.19.3
Derivative Instruments and Hedging Activity (Details - Designated as hedges) - Designated as hedging instrument - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 31, 2018
Derivative [Line Items]    
Notional amount total $ 24,522 $ 39,714
Fair value total 640 648
Prepaid expenses    
Derivative [Line Items]    
Notional amount, asset 9,755 5,258
Fair value, asset 397 239
Prepaid expenses | Foreign currency forward contract | Yen    
Derivative [Line Items]    
Notional amount, asset 1,000 0
Fair value, asset 14 0
Prepaid expenses | Foreign currency forward contract | Euro    
Derivative [Line Items]    
Notional amount, asset 8,082 725
Fair value, asset 369 2
Prepaid expenses | Precious metal swaps    
Derivative [Line Items]    
Notional amount, asset 156 4,533
Fair value, asset 4 237
Prepaid expenses | Copper swaps    
Derivative [Line Items]    
Notional amount, asset 517 0
Fair value, asset 10 0
Other assets    
Derivative [Line Items]    
Notional amount, asset 626 0
Fair value, asset 14 0
Other assets | Precious metal swaps    
Derivative [Line Items]    
Notional amount, asset 626 0
Fair value, asset 14 0
Other liabilities and accrued items    
Derivative [Line Items]    
Notional amount, liability 12,972 34,456
Fair value, liability 999 887
Other liabilities and accrued items | Foreign currency forward contract | Yen    
Derivative [Line Items]    
Notional amount, liability 944 1,264
Fair value, liability 9 17
Other liabilities and accrued items | Foreign currency forward contract | Euro    
Derivative [Line Items]    
Notional amount, liability 0 19,158
Fair value, liability 0 166
Other liabilities and accrued items | Precious metal swaps    
Derivative [Line Items]    
Notional amount, liability 9,342 2,864
Fair value, liability 949 135
Other liabilities and accrued items | Copper swaps    
Derivative [Line Items]    
Notional amount, liability 2,686 11,170
Fair value, liability 41 569
Other long-term liabilities | Precious metal swaps    
Derivative [Line Items]    
Notional amount, liability 1,169 0
Fair value, liability $ 52 $ 0
v3.19.3
Derivative Instruments and Hedging Activity (Details - Reclassificatoins from AOCI) - Designated as hedging instrument - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 27, 2019
Derivative Instruments, Gain (Loss)    
Derivative, Gain (Loss) on Derivative, Net $ 753 $ 739
Net sales | Foreign currency forward contract    
Derivative Instruments, Gain (Loss)    
Derivative, Gain (Loss) on Derivative, Net (3) (47)
Cost of sales | Precious metal swaps    
Derivative Instruments, Gain (Loss)    
Derivative, Gain (Loss) on Derivative, Net 343 281
Cost of sales | Copper swaps    
Derivative Instruments, Gain (Loss)    
Derivative, Gain (Loss) on Derivative, Net $ 413 $ 505
v3.19.3
Contingencies (Detail) - USD ($)
$ in Millions
9 Months Ended
Sep. 27, 2019
Dec. 31, 2018
Loss Contingency [Abstract]    
Accrual for Environmental Loss Contingencies, Significant Assumptions The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies.  
Undiscounted reserve balance $ 6.1 $ 6.5