MATERION CORP, 10-K filed on 2/16/2023
Annual Report
v3.22.4
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2022
Jan. 31, 2023
Jul. 01, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-15885    
Entity Registrant Name MATERION CORPORATION    
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    
Entity Address, Postal Zip Code 44124    
City Area Code 216    
Local Phone Number 486-4200    
Title of 12(b) Security Common Stock, no par value    
Trading Symbol MTRN    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,488,381,335
Entity Common Stock, Shares Outstanding   20,543,518  
Documents Incorporated by Reference Portions of the Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III.    
Entity Central Index Key 0001104657    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.4
Audit Information
12 Months Ended
Dec. 31, 2022
Auditor Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Cleveland, Ohio
Auditor Firm ID 42
v3.22.4
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Net sales $ 1,757,109 $ 1,510,644 $ 1,176,274
Cost of sales 1,413,229 1,226,882 983,641
Gross margin 343,880 283,762 192,633
Selling, general, and administrative expense 169,338 163,777 133,963
Research and development expense 28,977 26,575 20,283
Goodwill impairment charges (Note M) 0 0 9,053
Asset impairment charges (Note M) 0 0 1,419
Restructuring expense (income) 1,573 (438) 11,237
Other — net (Note E) 24,237 16,737 8,463
Operating profit 119,755 77,111 8,215
Other non-operating (income) expense — net (Note O) (5,250) (5,115) (3,939)
Interest expense - net 21,905 4,901 3,879
Income before income taxes 103,100 77,325 8,275
Income tax expense (benefit) (Note G) 17,110 4,851 (7,187)
Net income $ 85,990 $ 72,474 $ 15,462
Basic earnings per share:      
Net income per share of common stock (in usd per share) $ 4.19 $ 3.55 $ 0.76
Diluted earnings per share:      
Net income per share of common stock (in usd per share) $ 4.14 $ 3.50 $ 0.75
Weighted-average number of shares of common stock outstanding:      
Basic (in shares) 20,511 20,422 20,338
Diluted (in shares) 20,760 20,689 20,603
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income $ 85,990 $ 72,474 $ 15,462
Other comprehensive income:      
Foreign currency translation adjustment (5,869) (6,904) 9,030
Derivative and hedging activity, net of tax expense (benefit) of $1,387, $482, and $(28), respectively 4,655 1,603 (80)
Pension and post-employment benefit adjustment, net of tax expense (benefit) of $518, $1,094 and $(651), respectively (526) 3,771 (2,127)
Other comprehensive income (loss) (1,740) (1,530) 6,823
Comprehensive income $ 84,250 $ 70,944 $ 22,285
v3.22.4
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Derivative and hedging activity, tax benefit $ 1,387 $ 482 $ (28)
Pension and post employment benefit adjustment, tax benefit (expense) $ 518 $ 1,094 $ (651)
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net income $ 85,990 $ 72,474 $ 15,462
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, depletion, and amortization 53,436 44,137 42,384
Amortization of deferred financing costs in interest expense 1,734 967 790
Stock-based compensation expense (non-cash) 8,813 6,517 5,528
Amortization of pension and post-retirement costs (146) 437 (151)
Loss (gain) on sale of property, plant, and equipment 14 (282) 466
Deferred income tax (benefit) expense 1,733 (12,957) (9,850)
Impairment charges 0 0 10,472
Net pension curtailments and settlements (551) 0 94
Changes in assets and liabilities, net of acquired assets and liabilities:      
Decrease (increase) in accounts receivable (4,377) (30,490) (707)
Decrease (increase) in inventory (63,986) (43,458) (1,288)
Decrease (increase) in prepaid and other current assets (1,604) (3,855) 2,475
Increase (decrease) in accounts payable and accrued expenses 12,860 40,219 (21,877)
Increase (decrease) in unearned revenue 207 106 2,935
Increase (decrease) in interest and taxes payable 154 (220) (157)
Increase (decrease) in unearned income due to customer prepayments 21,942 13,752 54,103
Other — net (261) 2,894 378
Net cash provided by operating activities 115,958 90,241 101,057
Cash flows from investing activities:      
Payments for acquisition, net of cash acquired (2,971) (392,240) (130,715)
Payments for purchase of property, plant, and equipment (77,608) (102,910) (67,274)
Proceeds from settlement of currency exchange contract 0 0 3,249
Proceeds from sale of property, plant, and equipment 850 881 33
Net cash used in investing activities (79,729) (494,269) (194,707)
Cash flows from financing activities:      
Proceeds from (repayments of) borrowings under revolving credit agreement, net (9,046) 118,297 34,000
Proceeds from issuance of debt 9,276 300,000 0
Repayment of debt (19,299) (2,054) (20,634)
Principal payments under finance lease obligations (2,736) (2,819) (2,213)
Cash dividends paid (10,160) (9,697) (9,257)
Deferred financing costs 0 (7,403) 0
Repurchase of common stock 0 0 (6,766)
Payments for withholding taxes for stock-based compensation awards (3,593) (3,318) (2,221)
Net cash provided by (used in) financing activities (35,558) 393,006 (7,091)
Effects of exchange rate changes (2,032) (394) 1,612
Net change in cash and cash equivalents (1,361) (11,416) (99,129)
Cash and cash equivalents at beginning of period 14,462 25,878 125,007
Cash and cash equivalents at end of period $ 13,101 $ 14,462 $ 25,878
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets    
Cash and cash equivalents (Note A) $ 13,101 $ 14,462
Accounts receivable (Note A) 215,211 213,819
Inventories, net (Notes A and I) 423,080 361,115
Prepaid and other current assets 39,056 37,856
Total current assets 690,448 627,252
Deferred income taxes (Notes A and G) 3,265 5,431
Property, plant, and equipment (Notes A and J) 1,209,205 1,132,223
Less allowances for depreciation, depletion, and amortization (760,440) (723,248)
Property, plant, and equipment — net 448,765 408,975
Operating lease, right-of-use assets 64,249 63,096
Intangible assets (Notes A and M) 143,219 156,736
Other assets (Note O) 22,535 27,369
Goodwill (Notes A and M) 319,498 318,620
Total Assets 1,691,979 1,607,479
Current liabilities    
Short-term debt (Note N) 21,105 15,359
Accounts payable 107,899 86,243
Salaries and wages 35,543 37,544
Other liabilities and accrued items 54,993 53,388
Income taxes (Notes A and G) 3,928 4,205
Unearned revenue (Note D) 15,496 7,770
Total current liabilities 238,964 204,509
Other long-term liabilities 12,181 14,954
Operating lease liabilities 59,055 57,099
Finance lease liabilities 13,876 16,327
Retirement and post-employment benefits (Note O) 20,422 33,394
Unearned income (Notes A and K) 107,736 97,962
Long-term income taxes (Notes A and G) 665 1,190
Deferred income taxes (Notes A and G) 28,214 27,216
Long-term debt (Note N) 410,876 434,388
Shareholders’ equity    
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 for both 2022 and 2021) 288,100 271,978
Retained earnings 769,418 693,756
Common stock in treasury (6,605 shares for 2022 and 6,700 shares for 2021) (220,864) (209,920)
Accumulated other comprehensive loss (Note P) (41,909) (40,169)
Other equity 5,245 4,795
Total shareholders’ equity 799,990 720,440
Total Liabilities and Shareholders’ Equity $ 1,691,979 $ 1,607,479
v3.22.4
Consolidated Balance Sheets (Parenthetical) - shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Serial preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Serial preferred stock, shares issued (in shares) 0 0
Common stock, shares authorized (in shares) 60,000,000 60,000,000
Common stock, shares, issued (in shares) 27,148,000 27,148,000
Treasury stock, shares (in shares) 6,605,000 6,700,000
v3.22.4
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Shares
Common Shares Held in Treasury
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss)
Other Equity
Common shares beginning balance (in shares) at Dec. 31, 2019     20,404          
Common shares held in treasury beginning balance (in shares) at Dec. 31, 2019       6,744        
Beginning balance at Dec. 31, 2019 $ 645,743 $ 0 $ 249,674 $ (186,845) $ 624,954 $ 0 $ (45,462) $ 3,422
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 15,462              
Other comprehensive income 6,729           6,729  
Net pension curtailments and settlements 94           94  
Cash dividends declared (9,257)       (9,257)      
Stock-based compensation activity (in shares)     117 117        
Stock-based compensation activity 5,619   $ 8,867 $ (3,147) (101)      
Payments for withholding taxes for stock-based compensation awards (in shares)     39 39        
Payments for withholding taxes for stock-based compensation awards (2,221)     $ (2,221)        
Repurchase of shares (in shares)     158 158        
Repurchase of shares (6,766)     $ (6,766)        
Directors' deferred compensation (in shares)     4 4        
Directors' deferred compensation 227   $ 101 $ (208)       334
Common shares ending balance (in shares) at Dec. 31, 2020     20,328          
Common shares held in treasury ending balance (in shares) at Dec. 31, 2020       6,820        
Ending balance at Dec. 31, 2020 655,630   $ 258,642 $ (199,187) 631,058   (38,639) 3,756
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 72,474       72,474      
Other comprehensive income (1,530)           (1,530)  
Net pension curtailments and settlements 0              
Cash dividends declared (9,697)       (9,697)      
Stock-based compensation activity (in shares)     164 164        
Stock-based compensation activity 6,517   $ 13,142 $ (6,546) (79)      
Payments for withholding taxes for stock-based compensation awards (in shares)     49 49        
Payments for withholding taxes for stock-based compensation awards (3,318)     $ (3,318)        
Directors' deferred compensation (in shares)     5 5        
Directors' deferred compensation 364   $ 194 $ (869)       1,039
Common shares ending balance (in shares) at Dec. 31, 2021     20,448          
Common shares held in treasury ending balance (in shares) at Dec. 31, 2021       6,700        
Ending balance at Dec. 31, 2021 720,440   $ 271,978 $ (209,920) 693,756   (40,169) 4,795
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 85,990              
Other comprehensive income (1,740)           (1,740)  
Net pension curtailments and settlements (551)              
Cash dividends declared (10,160)       (10,160)      
Stock-based compensation activity (in shares)     135 135        
Stock-based compensation activity 8,813   $ 15,977 $ (6,996) (168)      
Payments for withholding taxes for stock-based compensation awards (in shares)     43 43        
Payments for withholding taxes for stock-based compensation awards (3,593)     $ (3,593)        
Directors' deferred compensation (in shares)     3 3        
Directors' deferred compensation 240   $ 145 $ (355)       450
Common shares ending balance (in shares) at Dec. 31, 2022     20,543          
Common shares held in treasury ending balance (in shares) at Dec. 31, 2022       6,605        
Ending balance at Dec. 31, 2022 $ 799,990   $ 288,100 $ (220,864) $ 769,418   $ (41,909) $ 5,245
v3.22.4
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]      
Cash dividends per share $ 0.495 $ 0.475 $ 0.455
v3.22.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Organization:  Materion Corporation (the Company) is a holding company with subsidiaries that have operations in the United States, Europe, and Asia. These operations manufacture advanced engineered materials used in a variety of end markets, including semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center. The Company has four reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. Other includes unallocated corporate costs.
Refer to Note C for additional segment details. The Company distributes its products through a combination of company-owned facilities and independent distributors and agents.
Business Combinations: The Company records assets acquired and liabilities assumed at the date of acquisition at their respective fair values. Intangible assets acquired in a business combination are recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.
See Note B for further discussion of the acquisition of HCS-Electronic Materials which was completed on November 1, 2021.
Use of Estimates:  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Consolidation:  The Consolidated Financial Statements include the accounts of Materion Corporation and its subsidiaries. All of the Company’s subsidiaries were wholly owned as of December 31, 2022. Intercompany accounts and transactions are eliminated in consolidation.
Cash Equivalents:  All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents.
Accounts Receivable:  An allowance for doubtful accounts is maintained for the expected losses resulting from the inability of customers to pay amounts due. The Company considers the current market conditions and credit losses related to the Company's trade receivables based on the macroeconomic environment, geographic considerations, and other expected market trends. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns, and other analyses of historical data and trends. Accounts receivable were net of an allowance for credit losses of $0.6 million and $0.5 million at December 31, 2022 and December 31, 2021, respectively. The change in the allowance for credit losses includes expense and net write-offs, neither of which were material. The Company extends credit to customers based upon their financial condition, and collateral is not generally required.
Inventories: Inventories are stated at net realizable value. The associated inventory reserve was $0.4 million and $0.3 million at December 31, 2022 and 2021, respectively. All of the Company's inventories, except for its bertrandite ore mine which values inventory using a weighted average cost method, including raw materials, manufacturing supplies inventory as well as international (outside the U.S.) inventories, have been valued using the first-in, first-out (FIFO) method as of December 31, 2022 and 2021.
Property, Plant, and Equipment:  Property, plant, and equipment is stated on the basis of cost. Depreciation is computed principally by the straight-line method, except certain assets for which depreciation may be computed by the units-of-production method. The depreciable lives that are used in computing the annual provision for depreciation by class of asset are primarily as follows:
 Years
Land improvements
10 to 20
Buildings
20 to 40
Leasehold improvementsLife of lease
Machinery and equipment
3 to 15
Furniture and fixtures
4 to 10
Automobiles and trucks
3 to 8
Research equipment
3 to 10
Computer hardware
3 to 10
Computer software
3 to 10
An asset acquired under a finance lease will be recorded at the lesser of the present value of the projected lease payments or the fair value of the asset and will be depreciated in accordance with the above schedule. Leasehold improvements will be depreciated over the life of the improvement if it is shorter than the life of the lease. Repair and maintenance costs are expensed as incurred.
Mineral Resources and Mine Development: Property acquisition costs are capitalized as mineral resources on the balance sheet and are depleted using the units-of-production method based upon total estimated recoverable proven reserves of the beryllium-bearing bertrandite ore body. The Company uses beryllium pounds as the unit of accounting measure, and depletion expense is recorded on a pro-rata basis based upon the amount of beryllium pounds extracted as a percentage of total estimated beryllium pounds contained in the ore body.
Mine development costs at our open pit surface mines include drilling, infrastructure, other related costs to delineate an ore body and the removal of overburden to initially expose an ore body. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves.
In 2020, the Company expanded a mine to further develop an ore body. Since the pre-production phase ended when ore was first extracted from this mine, the Company recognized approximately $12.9 million of mine development costs in 2020 as a component of cost of sales. This expansion is expected to benefit future periods.
The cost of removing overburden and waste materials to access the ore body at an open-pit mine prior to the production phase is capitalized during the development of an open-pit mine and are capitalized at each pit. These costs are amortized as the ore is extracted using the units-of-production method based upon total estimated recoverable proven reserves for the individual pit. The Company uses beryllium pounds as the unit of accounting measure for recording amortization.
To the extent that the aforementioned costs benefit an entire ore body, the costs are amortized over the estimated useful life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block area.
Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of costs applicable to sales. All other drilling and related costs are expensed as incurred.
Goodwill and Other Intangible Assets:  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. For the purpose of the goodwill impairment assessment, the Company has the option to perform a qualitative assessment (commonly referred to as "step zero") to determine whether further quantitative analysis of impairment of goodwill is necessary or a quantitative assessment ("step one") where the Company estimates the fair value of each reporting unit using a discounted cash flow method (income approach). Goodwill is assigned to the reporting unit, which is the operating segment level or one level below the operating segment. Intangible assets with finite lives are amortized using the straight-line method or effective interest method, as applicable, over the periods estimated to be benefited, which is generally 20 years or less. Finite-lived intangible assets are also reviewed for impairment if facts and circumstances warrant.
Long-Lived Asset Impairment: Management performs impairment tests of long-lived assets, including property and equipment, whenever an event occurs or circumstances change that indicate that the carrying value may not be recoverable or the useful life
of the asset has changed. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future undiscounted cash flows generated by the asset group are less than its carrying value.  If such undiscounted cash flows indicate that the carrying value of the asset group is not recoverable, impairment losses are measured by comparing the estimated fair value of the asset group to its carrying amount.
Derivatives:  The Company recognizes all derivatives 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, a component of shareholders’ equity, until the hedged item is recognized in earnings. If the derivative is designated as a fair value hedge, changes in fair value are offset against the change in the fair value of the hedged asset, liability, or commitment through earnings. The ineffective portion of a derivative’s change in fair value, if any, is recognized in earnings immediately. If a derivative is not a hedge, changes in its fair value are adjusted through the income statement.
Asset Retirement Obligation:  The Company records a liability to recognize the legal obligation to remove an asset at the time the asset is acquired or when the legal liability arises. The liability is recorded for the present value of the ultimate obligation by discounting the estimated future cash flows using a credit-adjusted risk-free interest rate. The liability is accreted over time, with the accretion charged to expense. An asset equal to the fair value of the liability is recorded concurrent with the liability and depreciated over the life of the underlying asset.
Unearned Income:  Expenditures for capital equipment to be reimbursed under government contracts are recorded in property, plant, and equipment, while the reimbursements for those expenditures are recorded in unearned income, a liability on the balance sheet. When the assets subject to reimbursement are placed in service, the total cost is depreciated over the useful lives, and the unearned income liability is reduced and credited to cost of sales on the Consolidated Statements of Income ratably with the annual depreciation expense.
Also included in Unearned Income as of December 31, 2022 and 2021, are $85.9 million and $72.6 million, respectively, of customer prepayments. See Note K for additional discussion.
Advertising Costs: The Company expenses all advertising costs as incurred. Advertising costs were $0.3 million in 2022, 2021, and 2020.
Stock-based Compensation:  The Company recognizes stock-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Stock-based awards include performance-based restricted stock units (PRSUs), restricted stock units (RSUs), and stock appreciation rights (SARs). The fair value of PRSUs and RSUs is primarily based on the closing market price of a share of the Company's common stock on the date of grant, modified as appropriate to take into account the features of such grants. SARs are granted with an exercise price equal to the closing price of the Company's common shares on the date of grant. The fair value of SARs is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. The portion of the PRSU awards that are valued based on the Company's total shareholder return as compared to peers is valued using Monte Carlo simulations, which incorporates assumptions regarding the expected volatility, the expected correlation, and the risk-free interest rate. See Note Q for additional information about stock-based compensation.
Capitalized Interest: Interest expense associated with active capital asset construction and mine development projects is capitalized and amortized over the future useful lives of the related assets.
Income Taxes:  The Company uses the liability method in measuring the provision for income taxes and recognizing deferred tax assets and liabilities on the balance sheet. The Company will record a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized, as warranted by current facts and circumstances. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties and will record a liability for those tax benefits that have a less than 50% likelihood of being sustained upon examination by the taxing authorities.
Net Income Per Share:  Basic earnings per share (EPS) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive common stock equivalents as appropriate using the treasury stock method.
New Pronouncements Adopted:  
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This guidance requires companies to apply ASC 606 on the acquisition date to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This is an exception to the recognition and measurement principle in ASC 805 which generally requires an acquirer to recognize and measure the assets it acquires and the liabilities it assumes at fair value on the acquisition date. For
public entities, the guidance is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. The Company has early adopted this guidance and has applied it to the accounting for contract assets and contract liabilities acquired as part of the HCS-Electronic Materials (as defined in Note B) acquisition.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance is available immediately and the Company has applied this guidance in accounting for the interest rate swap as discussed in Note R. Any additional reference rate reform impacts will be accounted for in accordance with ASU 2020-04.
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.
Reclassifications
Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. These reclassifications had no impact on the Company’s financial position, results of operations, or cash flows.
v3.22.4
Acquisition
12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
On November 1, 2021, the Company acquired the industry-leading electronic materials business of H.C. Starck Group GmbH (HCS-Electronic Materials) for a cash purchase price of approximately $398.9 million, on a cash-free, debt-free basis, subject to a customary purchase price adjustment mechanism. In 2022, acquisition-related inventory step-up expense was $7.5 million and classified in Cost of Sales and transaction and integration costs were $4.2 million and classified in Selling, General and Administrative expenses in the accompanying consolidated statements of income. The Company financed the purchase price for the HCS-Electronic Materials acquisition with a new $300 million five-year term loan pursuant to a delayed draw term loan facility entered during October 2021 and $103 million of borrowings under its amended revolving credit facility, which was also extended to expire five years in October 2026. This acquired business operates within the Performance Materials and Electronic Materials segments, and the results of operations are included as of the date of acquisition. The combination of Materion and HCS-Electronic Materials enhances the Company's position as the leading supplier to the high growth semiconductor industry.

During the period subsequent to the HCS-Electronic Materials acquisition, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period. Additionally, we paid a working capital true-up of approximately $3.0 million during the second quarter of 2022, which increased the total purchase price. As of November 1 2022, the purchase price allocation was final. The following table sets forth cumulative measurement period changes since the acquisition date, as well as the initial allocation of the estimated fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of HCS-Electronic Materials, with the excess recorded to goodwill:
(Thousands)Initial Allocation of ConsiderationMeasurement Period AdjustmentsFinal Allocation
Assets:
Cash and cash equivalents$3,685 $— $3,685 
Accounts receivable28,352 35 28,387 
Inventories70,681 — 70,681 
Prepaid and other current assets660 (450)210 
Property, plant, and equipment 44,681 355 45,036 
Operating lease, right-of-use assets6,120 — 6,120 
Intangible assets107,800 — 107,800 
Other long-term assets4,528 — 4,528 
Goodwill178,181 3,144 181,325 
Total assets acquired$444,688 $3,084 $447,772 
Liabilities:
Accounts payable$12,139 $(240)$11,899 
Salaries and wages2,516 $625 3,141 
Other liabilities and accrued items28 $— 28 
Income taxes2,183 $(457)1,726 
Other long-term liabilities5,543 $215 5,758 
Operating lease liabilities6,042 $— 6,042 
Deferred income taxes20,300 $(30)20,270 
Total liabilities assumed$48,751 $113 $48,864 
Net assets acquired$395,937 $2,971 $398,908 

Assets acquired and liabilities assumed are recognized at their respective fair values as of the acquisition date. The Company engaged specialists to assist in the valuation of inventories, property, plant, and equipment, and intangible assets.

In determining the fair value of the amounts above, inventory is fair valued based on the comparative sales method for work in process and finished goods at the selling price less cost to dispose and remaining manufacturing effort. The remaining working capital accounts' carrying values approximate fair value. For property, plant and equipment and intangible asset values, the Company utilized various forms of the income, cost and market approaches depending on the asset being valued. The Company used a relief from royalty method under the income approach to value its trade names and developed technology and the multi-period excess earnings method under the income approach to value customer relationships. The significant assumptions used to estimate the fair value of these intangible assets included the discount rate and certain assumptions that form the basis of future cash flows (including revenue growth rates, royalty rates for trade names and developed technology, and attrition rates for customer relationships). Inputs were generally determined by taking into account independent appraisals and historical data, supplemented by current and anticipated market conditions and are considered Level 3 assets as the assumptions are unobservable inputs developed by the Company.

As part of the acquisition, the Company recorded approximately $181.3 million of goodwill allocated between its Electronic Materials and Performance Materials segments based on the relative fair values. Goodwill was calculated as the excess of the purchase price over the estimated fair values of the tangible net assets and intangible assets acquired and primarily attributable to the synergies expected to arise after the acquisition dates. The goodwill is not expected to be deductible for U.S. tax purposes.

The following table reports the intangible assets by asset category as of the closing date:
(Thousands)Value at AcquisitionUseful Life
Customer relationships$50,200 13 years
Technology35,300 13 years
Trade name22,300 15 years
Total$107,800 
Had the HCS-Electronic Materials acquisition occurred as of the beginning of fiscal 2020, the Company's sales and income (loss) before taxes would have been as follows:
(Unaudited)
Year Ended December 31,
20212020
Net Sales$1,659,620 $1,308,300 
Profit income (loss) before taxes$91,551 $(17,761)

The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the acquisition occurred on January 1, 2020. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. The transaction accounting adjustments and other adjustments are based on available information and assumptions that the Company’s management believes are reasonable. Such adjustments are estimates and actual experience may differ from expectations. The amortization of inventory step-up from the preliminary purchase price allocation of approximately $15 million of expense is reflected in the 2020 unaudited pro forma income (loss) before taxes above. Additionally, the 2020 pro forma income (loss) before taxes includes approximately $10 million of additional interest expense related to committed financing to fund the acquisition, annual acquisition-related intangible asset amortization expense of $8.2 million, and transaction expenses of $5.5 million as if it occurred on January 1, 2020.
v3.22.4
Segment Reporting and Geographic Information
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information Segment Reporting and Geographic Information
The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. The Company believes these names better represent the markets served and the advanced next-generation product solutions provided to our customers. Other than the name changes, there were no changes in the composition or structure of the Company's reportable segments in 2022.
The Company has the following operating segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Company’s operating 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. The segments are determined based on several factors, including the availability of discrete financial information and the Company’s organizational and management structure.
Performance Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes.
Electronic Materials produces advanced chemicals, microelectronics 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 Optics 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.
Beginning with the first quarter of 2022, the Company began using earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) as the main operating income metric used by management to measure the financial performance of the Company and each segment. The Company made this change because recent acquisitions have resulted in increased purchase accounting amortization expense, which in turn has affected the comparability of results across periods and when compared to other companies. Management believes EBITDA is useful to investors as it better represents the Company's performance, excluding the effect of the recent acquisition of significant intangible assets that are now being amortized. EBITDA is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP.
The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for 2022 and 2021:
(Thousands)20222021
Net sales:
Performance Materials(1)
$671,525 $511,874 
Electronic Materials(1)
$971,902 866,816 
Precision Optics113,682 131,954 
Other — 
Net sales1,757,109 1,510,644 
Segment EBITDA:
Performance Materials$125,227 89,028 
Electronic Materials67,806 $44,852 
Precision Optics13,753 25,854 
Other(28,345)(33,371)
Total Segment EBITDA178,441 126,363 
Income tax expense17,110 4,851 
Interest expense - net21,905 4,901 
Depreciation, depletion and amortization53,436 44,137 
Net income$85,990 $72,474 
(1) Excludes inter-segment sales of $0.7 million for Performance Materials and $14.0 million for Electronic Materials for 2022 and $0.2 million for Performance Materials and $13.9 million for Electronic Materials for 2021. Inter-segment sales are eliminated in consolidation.

Other geographic information includes the following:
(Thousands)202220212020
Net sales
United States$867,053 $794,862 $641,727 
Asia519,395 426,303 329,968 
Europe355,691 270,213 189,281 
All other14,970 19,266 15,298 
Total$1,757,109 $1,510,644 $1,176,274 
Property, plant, and equipment, net by country deployed
United States$372,779 $327,969 $223,340 
All other75,986 81,006 86,346 
Total$448,765 $408,975 $309,686 

International sales include sales from international operations and direct exports from our U.S. operations. No individual country, other than the United States, or customer accounted for 10% or more of the Company’s net sales for the years presented.
The following table disaggregates revenue for each segment by end market for 2022 and 2021:
 (Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsOtherTotal
2022
End Market
Semiconductor$8,666 $784,517 $5,107 $ $798,290 
Industrial168,012 47,407 31,948  247,367 
Aerospace and Defense110,884 5,882 16,988  133,754 
Consumer Electronics49,859 1,144 22,666  73,669 
Automotive93,581 7,590 9,922  111,093 
Energy50,021 98,844   148,865 
Telecom and Data Center65,230 149   65,379 
Other125,272 26,369 27,051  178,692 
    Total$671,525 $971,902 $113,682 $ $1,757,109 
2021
End Market
Semiconductor$8,481 $683,085 $2,572 $ $694,138 
Industrial123,337 45,025 32,779  201,141 
Aerospace and Defense86,046 5,509 23,622  115,177 
Consumer Electronics41,694 1,184 32,485  75,363 
Automotive105,466 7,321 8,356  121,143 
Energy23,913 99,330 —  123,243 
Telecom and Data Center53,510 173 —  53,683 
Other69,427 25,189 32,140  126,756 
    Total$511,874 $866,816 $131,954 $— $1,510,644 
v3.22.4
Revenue Recognition
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer 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.
Shipping and Handling Costs: The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill its promise to transfer the associated products. Accordingly, customer payments for shipping and handling costs are recorded as a component of net sales, and related costs are recorded as a component of cost of sales.
Taxes Collected from Customers and Remitted to Governmental Authorities: Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority.
Product Warranty: Substantially all of the Company’s customer contracts contain a warranty that provides assurance that the purchased product will function as expected and in accordance with certain specifications. The warranty is intended to safeguard the customer against existing defects and does not provide any incremental service to the customer.
Transaction Price Allocated to Future Performance Obligations: ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at December 31, 2022. 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 December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $63.9 million.
Contract Costs: The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs primarily relate to sales commissions, which are included in selling, general, and administrative expenses.
Contract Balances: The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:
(Thousands)December 31, 2022December 31, 2021$ change% change
Accounts receivable, trade
$215,726 $213,584 $2,142 %
Unbilled receivables
10,765 7,961 2,804 35 %
Unearned revenue
15,496 7,770 7,726 99 %
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 2022.
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 $7.1 million of the December 31, 2021 unearned amounts as revenue during 2022. The Company recognized approximately $6.8 million of the December 31, 2020 unearned amounts as revenue during 2021.

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.
v3.22.4
Other-net
12 Months Ended
Dec. 31, 2022
Other-net [Abstract]  
Other-net Other-net
Other-net is summarized for 2022, 2021, and 2020 as follows:
 (Income) Expense
(Thousands)202220212020
Metal consignment fees$12,212 $9,305 $8,587 
Amortization of intangible assets12,400 5,973 2,377 
Foreign currency loss (gain)(679)1,573 (2,569)
Net (gain) loss on disposal of fixed assets14 (282)466 
Other items290 168 (398)
Total other-net$24,237 $16,737 $8,463 
v3.22.4
Interest Expense-net
12 Months Ended
Dec. 31, 2022
Interest [Abstract]  
Interest Expense-net Interest Expense-net
The following chart summarizes the interest incurred, capitalized, and paid in 2022, 2021, and 2020:
(Thousands)202220212020
Interest incurred, net$23,014 $5,277 $3,889 
Less: Capitalized interest1,109 376 10 
Total net expense$21,905 $4,901 $3,879 
Interest paid$21,190 $3,652 $3,442 
The increase in interest expense in 2022 versus 2021 was driven by increased borrowings under our revolving credit facility and new term loan during 2021 primarily to finance the acquisition of HCS-Electronic Materials. Amortization of deferred financing costs within interest expense was $1.7 million in 2022, $1.0 million in 2021, and $0.8 million in 2020.
v3.22.4
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
On August 9, 2022, President Biden signed the CHIPS and Science Act (CHIPS Act) into law. The CHIPS Act provides incentives, beginning in 2023, for manufacturing semiconductors and certain tooling equipment used in the semiconductor manufacturing process. On August 16, 2022, President Biden also signed the Inflation Reduction Act of 2022 (IRA) into law. The IRA, among other provisions, includes a new corporate alternative minimum tax on certain large corporations, an excise tax on stock buybacks, and tax credits for certain critical minerals. The Company does not expect to be an applicable corporation subject to the alternative minimum tax based on our reported GAAP earnings the past three years. The CHIPS Act and the IRA did not have an impact to our consolidated financial statements for the year ended December 31, 2022. We continue to examine the impacts the CHIPS Act and the IRA may have on the Company in 2023 and subsequent years.

Income (loss) before income taxes and income tax expense (benefit) are comprised of the following:
(Thousands)202220212020
Income (loss) before income taxes:
Domestic$90,403 $54,684 $(1,153)
Foreign12,697 22,641 9,428 
Total income (loss) before income taxes$103,100 $77,325 $8,275 
Income tax expense:
Current income tax expense (benefit):
Domestic$12,571 $14,603 $812 
Foreign2,806 3,205 1,851 
Total current$15,377 $17,808 $2,663 
Deferred income tax (benefit) expense:
Domestic$588 $(7,953)$(5,641)
Foreign1,145 (5,004)(4,209)
Total deferred$1,733 $(12,957)$(9,850)
Total income tax expense (benefit)$17,110 $4,851 $(7,187)

A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows:
202220212020
U.S. federal statutory rate21.0 %21.0 %21.0 %
State and local income taxes, net of federal tax effect1.7 (0.3)(10.0)
Effect of excess of percentage depletion over cost depletion(3.1)(3.4)(43.0)
Foreign derived intangible income deduction(1.7)(2.3)(1.8)
Non-deductible goodwill impairment — 7.1 
Research and development tax credit(2.0)(1.2)(16.4)
Impact of foreign operations0.6 0.3 (5.3)
Non-deductible transaction costs 1.6 6.9 
Interest from tax authorities — (3.8)
Adjustment to unrecognized tax benefits(0.5)(1.9)1.8 
Equity compensation(0.9)(0.5)(5.3)
Non-deductible officers' compensation1.2 1.4 6.8 
Valuation allowance0.6 (8.5)(45.5)
Other items(0.3)0.1 0.6 
Effective tax rate16.6 %6.3 %(86.9)%

Deferred tax assets and (liabilities) are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and (liabilities) recorded in the Consolidated Balance Sheets consist of the following:
 December 31,
(Thousands)20222021
Asset (liability)
Post-employment benefits other than pensions$1,230 $1,714 
Other reserves1,831 1,901 
Deferred compensation3,850 3,263 
Environmental reserves1,321 1,358 
Inventory6,118 — 
Research expenditures7,069 — 
Revenue recognition7,878 5,027 
Lease liabilities12,651 11,639 
Interest expense carryforward12,470 14,163 
Pensions 1,393 
Accrued compensation expense5,477 6,410 
Net operating loss and credit carryforwards9,915 11,423 
Subtotal69,810 58,291 
Valuation allowance(4,935)(4,957)
Total deferred tax assets64,875 53,334 
Depreciation(42,481)(24,484)
Lease assets(12,078)(11,184)
Inventory (2,329)
Amortization(32,925)(35,542)
Mine development (917)
Pensions(400)— 
Unrealized gains
(1,940)(663)
Total deferred tax liabilities(89,824)(75,119)
Net deferred tax liabilities$(24,949)$(21,785)

The Company had deferred income tax assets offset with a valuation allowance for certain foreign and state net operating losses, a domestic capital loss carryforward, state investment and research and development tax credit carryforwards, and deferred tax assets that are not likely to be realized for certain of the Company's controlled foreign corporations. The Company intends to maintain a valuation allowance on these deferred tax assets until a realization event occurs to support reversal of all or a portion of the allowance.

At December 31, 2022, for income tax purposes, the Company had foreign net operating loss carryforwards of $21.2 million that do not expire, and $3.2 million that expire in calendar years 2023 through 2027. The Company had state net operating loss carryforwards of $16.3 million that expire in calendar years 2023 through 2040 and state tax credits of $4.1 million that expire in calendar years 2023 through 2037. The Company also had a capital loss carryforward of $7.4 million that expires in 2026. A valuation allowance of $4.9 million has been provided against certain foreign and state net operating loss carryforwards, a U.S. capital loss carryforward, and state tax credits due to uncertainty of their realization.

The Company files income tax returns in the U.S. federal jurisdiction, and in various state, local, and foreign jurisdictions. With limited exceptions, the Company is no longer subject to U.S. federal examinations for years before 2019, state and local examinations for years before 2018, and foreign examinations for tax years before 2017.

We operate under a tax holiday in Malaysia, which was extended and is effective through July 31, 2027. The tax holiday is conditional upon our meeting certain employment, sales, and investment thresholds. The impact of this holiday decreased foreign taxes by $3.0 million in 2022.
A reconciliation of the Company’s unrecognized tax benefits for the year-to-date periods ended December 31, 2022 and 2021 is as follows:
(Thousands)20222021
Balance at January 1$1,142 $2,360 
Additions to tax provisions related to the current year 431 
Additions to tax positions related to prior years — 
Reduction to tax positions related to prior years(8)(45)
Lapses on statutes of limitations(482)(1,604)
Balance at December 31$652 $1,142 
Included in the balance of unrecognized tax benefits, including interest and penalties, as of December 31, 2022 and December 31, 2021 are $0.7 million and $1.2 million, respectively, of tax benefits that would affect the Company’s effective tax rate if recognized. It is reasonably possible that the amount of unrecognized tax benefits will change in the next twelve months; however, we do not expect the change to have a material impact on the Consolidated Statements of Income or the Consolidated Balance Sheets.

The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statements of Income. Accrued interest and penalties are included on the related tax liability line in the Consolidated Balance Sheets. The amount of interest and penalties, net of the related tax benefit, recognized in earnings was immaterial during 2022, 2021, and 2020. As of December 31, 2022 and 2021, accrued interest and penalties, net of the related tax benefit, were immaterial.
Income taxes paid during 2022, 2021, and 2020, were approximately $14.5 million, $21.8 million, and $3.9 million, respectively.
No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations as of December 31, 2022. The amount of such unrepatriated earnings totaled $105.4 million as of December 31, 2022. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.
v3.22.4
Earnings Per Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following table sets forth the computation of basic and diluted EPS:
(Thousands except per share amounts)202220212020
Numerator for basic and diluted EPS:
Net income$85,990 $72,474 $15,462 
Denominator:
Denominator for basic EPS:
Weighted-average shares outstanding20,511 20,422 20,338 
Effect of dilutive securities:
Stock appreciation rights81 78 39 
Restricted stock units102 124 102 
Performance-based restricted stock units66 65 124 
Diluted potential common shares249 267 265 
Denominator for diluted EPS:
Adjusted weighted-average shares outstanding20,760 20,689 20,603 
Basic EPS$4.19 $3.55 $0.76 
Diluted EPS$4.14 $3.50 $0.75 
Equity awards covering shares of common stock totaling 56,636 in 2022, 55,598 in 2021, and 166,255 in 2020 were excluded from the diluted EPS calculation as their effect would have been anti-dilutive.
v3.22.4
Inventories, net
12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Inventories, net Inventories, net
Inventories in the Consolidated Balance Sheets are summarized as follows:
 December 31,
(Thousands)20222021
Raw materials and supplies$113,694 $93,518 
Work in process249,105 221,638 
Finished goods60,281 45,959 
Inventories, net423,080 361,115 
Inventory balances are presented net of an excess and obsolete reserve totaling $19.8 million and $23.9 million at December 31, 2022 and December 31, 2021, respectively.
The Company takes and records the results of a physical inventory count of its precious metals on a quarterly basis. The Company's precious metal operations include a refinery that processes precious metal-containing scrap and other materials from its customers, as well as its own internally generated scrap. The Company also outsources portions of its refining requirements to other vendors, particularly those materials with longer processing times. The precious metal content within these various refine streams may be in solutions, sludges, and other non-homogeneous forms and can vary over time based upon the input materials, yield rates, and other process parameters. The determination of the weight of the precious metal content within the refine streams as part of a physical inventory count requires the use of estimates and calculations based upon assays, assumed recovery percentages developed from actual historical data and other analyses, the total estimated volumes of solutions and other materials within the refinery, data from the Company's refine vendors, and other factors. The resulting calculated weight of the precious metals in the Company's refine operations may differ, in either direction, from what its records indicate that the Company should have on hand, which would then result in an adjustment to its pre-tax income in the period when the physical inventory was taken, and the related estimates were made.
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 $373.1 million as of December 31, 2022 versus $480.2 million as of December 31, 2021.
v3.22.4
Property, Plant, and Equipment
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment Property, Plant, and Equipment
Property, plant, and equipment on the Consolidated Balance Sheets is summarized as follows:
 December 31,
(Thousands)20222021
Land$26,579 $26,627 
Buildings200,223 173,907 
Machinery and equipment770,628 687,502 
Software44,886 45,445 
Construction in progress100,188 130,838 
Allowances for depreciation(720,455)(690,166)
Subtotal422,049 374,153 
Finance leases31,662 32,865 
Allowances for depreciation(7,395)(6,193)
Subtotal24,267 26,672 
Mineral resources4,980 4,980 
Mine development30,059 30,059 
Allowances for amortization and depletion(32,590)(26,889)
Subtotal2,449 8,150 
Property, plant, and equipment — net$448,765 $408,975 
The Company received $63.5 million from the U.S. Department of Defense (DoD), in previous periods, for reimbursement of the DoD's share of the cost of equipment. This amount was recorded in property, plant, and equipment and the reimbursements
are reflected in Unearned income on the Consolidated Balance Sheets. The equipment was placed in service during 2012, and its full cost is being depreciated in accordance with Company policy. The unearned income liability is being reduced ratably with the depreciation expense recorded over the life of the equipment. Unearned income was reduced by $4.4 million in 2022 and $4.3 million in both 2021 and 2020 and credited to cost of sales in the Consolidated Statements of Income, offsetting the impact of the depreciation expense on the associated equipment on the Company's cost of sales and gross margin. The unamortized unearned income balance was $15.3 million and $19.7 million at December 31, 2022 and December 31, 2021, respectively.
We recorded depreciation and depletion expense of $35.2 million in 2022, $31.4 million in 2021, and $30.9 million in 2020. Depreciation, depletion, and amortization as shown on the Consolidated Statement of Cash Flows is net of the reduction in the unearned income liability in 2022, 2021, and 2020. The net carrying value of capitalized software was $4.6 million and $5.4 million at December 31, 2022 and December 31, 2021, respectively. Depreciation expense related to software was $1.8 million in 2022, 2021, and 2020, respectively.
As of December 31, 2022 and December 31, 2021 capital expenditures in accounts payable was $12.1 million and $2.1 million, respectively.
v3.22.4
Customer Prepayments
12 Months Ended
Dec. 31, 2022
Revenue Recognition and Deferred Revenue [Abstract]  
Customer Prepayments Customer Prepayments
In 2020, the Company entered into an investment agreement and a master supply agreement with a customer to procure equipment to manufacture product for the customer. The customer provided prepayments to the Company to fund the necessary infrastructure improvements and procure the equipment necessary to supply the customer with the desired product. The Company owns, operates and maintains the equipment that is being used to manufacture product for the customer.

Revenue will be recognized as the Company fulfills purchase orders and ships the commercial product to the customer, as product delivery is considered the satisfaction of the performance obligation.

Additionally, during the second quarter of 2022, the Company entered into an amendment to the investment agreement with the same customer to procure additional equipment to manufacture product for the customer. As of December 31, 2022, the Company has received approximately $21.9 million in prepayments under the terms of this amended agreement.

As of December 31, 2022 and 2021, $85.9 million and $72.6 million, respectively, of prepayments are classified as Unearned income on the Consolidated Balance Sheet. The prepayments will remain in Unearned income until commercial purchase orders are received for product serviced out of the equipment, at which time a portion of the purchase order value related to prepayments will be reclassified to Unearned revenue. As of December 31, 2022 $4.5 million of the prepayments are classified as Unearned revenue. No amounts of the prepayments were classified as short-term unearned revenue as of December 31, 2021
v3.22.4
Leasing Arrangements
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leasing Arrangements Leasing Arrangements
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. As of December 31, 2022, we had no material leases that had yet to commence.
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 over which lease payments are made, adjusted for the impact of collateral.
The components of operating and finance lease cost for 2022 and 2021 were as follows:
(Thousands)20222021
Components of lease expense
Operating lease cost$13,381 $11,825 
Finance lease cost
Amortization of right-of-use assets1,202 1,989 
Interest on lease liabilities819 1,009 
Total lease cost$15,402 $14,823 
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 December 31, 2022 and 2021 is as follows:

(Thousands, except lease term and discount rate)20222021
Supplemental balance sheet information
Operating Leases
Operating lease right-of-use assets
$64,249 $63,096 
Other liabilities and accrued items8,401 7,906 
Operating lease liabilities59,055 57,099 
Finance Leases
Property, plant, and equipment
$31,662 $32,865 
Allowances for depreciation, depletion, and amortization
(7,395)(6,193)
Finance lease assets, net$24,267 $26,672 
Other liabilities and accrued items$1,485 $2,800 
Finance lease liabilities13,876 16,327 
Total principal payable on finance leases$15,361 $19,127 
Weighted Average Remaining Lease Term
Operating leases
11.7811.47
Finance leases
17.9816.96
Weighted Average Discount Rate
Operating leases
6.08%6.19%
Finance leases
5.11%4.99%
Future maturities of the Company's lease liabilities as of December 31, 2022 are as follows:
FinanceOperating
(Thousands)LeasesLeases
2023$2,216 $12,338 
20241,385 9,642 
20251,230 8,743 
20261,204 7,355 
20271,204 5,913 
2028 and thereafter 16,579 51,574 
Total lease payments23,818 95,565 
Less amount of lease payment representing interest8,457 28,109 
Total present value of lease payments$15,361 $67,456 

Supplemental cash flow information related to leases was as follows:
(Thousands)20222021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,653 $17,580 
Operating cash flows from finance leases818 1,009 
Financing cash flows from finance leases2,736 2,819 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases9,967 9,191 
Finance leases — 
Leasing Arrangements Leasing Arrangements
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. As of December 31, 2022, we had no material leases that had yet to commence.
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 over which lease payments are made, adjusted for the impact of collateral.
The components of operating and finance lease cost for 2022 and 2021 were as follows:
(Thousands)20222021
Components of lease expense
Operating lease cost$13,381 $11,825 
Finance lease cost
Amortization of right-of-use assets1,202 1,989 
Interest on lease liabilities819 1,009 
Total lease cost$15,402 $14,823 
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 December 31, 2022 and 2021 is as follows:

(Thousands, except lease term and discount rate)20222021
Supplemental balance sheet information
Operating Leases
Operating lease right-of-use assets
$64,249 $63,096 
Other liabilities and accrued items8,401 7,906 
Operating lease liabilities59,055 57,099 
Finance Leases
Property, plant, and equipment
$31,662 $32,865 
Allowances for depreciation, depletion, and amortization
(7,395)(6,193)
Finance lease assets, net$24,267 $26,672 
Other liabilities and accrued items$1,485 $2,800 
Finance lease liabilities13,876 16,327 
Total principal payable on finance leases$15,361 $19,127 
Weighted Average Remaining Lease Term
Operating leases
11.7811.47
Finance leases
17.9816.96
Weighted Average Discount Rate
Operating leases
6.08%6.19%
Finance leases
5.11%4.99%
Future maturities of the Company's lease liabilities as of December 31, 2022 are as follows:
FinanceOperating
(Thousands)LeasesLeases
2023$2,216 $12,338 
20241,385 9,642 
20251,230 8,743 
20261,204 7,355 
20271,204 5,913 
2028 and thereafter 16,579 51,574 
Total lease payments23,818 95,565 
Less amount of lease payment representing interest8,457 28,109 
Total present value of lease payments$15,361 $67,456 

Supplemental cash flow information related to leases was as follows:
(Thousands)20222021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,653 $17,580 
Operating cash flows from finance leases818 1,009 
Financing cash flows from finance leases2,736 2,819 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases9,967 9,191 
Finance leases — 
v3.22.4
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
Intangible Assets
The cost and accumulated amortization of intangible assets subject to amortization as of December 31, 2022 and 2021, is as follows:
 20222021
(Thousands)Gross Carrying AmountAccumulated AmortizationNetGross Carrying AmountAccumulated AmortizationNet
Customer relationships$110,347 $(28,950)$81,397 $111,220 $(22,777)$88,443 
Technology44,886 (10,420)34,466 45,014 (6,917)38,097 
Licenses and other 34,300 (10,562)23,738 34,468 (7,879)26,589 
Total$189,533 $(49,932)$139,601 $190,702 $(37,573)$153,129 

During 2021, the Company acquired $50.2 million in customer relationships with a useful life of 13 years and $35.3 million in technology with a useful life of 13 years, as well as a $22.3 million trade name with a useful life of 15 years related to the HCS-Electronic Materials acquisition.
During 2020, the Company accelerated amortization on $26.2 million of intangible assets for its LAC business that was shut down on December 31, 2020. These assets were fully amortized as of December 31, 2020 and fully written off in 2021 with no impact to the Consolidated Statements of Income in 2021.
Amortization expense for 2022, 2021, and 2020 was $12.4 million, $6.0 million, and $2.4 million, respectively.
Estimated amortization expense for each of the five succeeding years is as follows:
Amortization
(Thousands)Expense
202312,473 
202412,473 
202511,851 
202610,626 
202710,471 
Intangible assets also includes deferred costs relating to the Company's revolving credit and consignments lines of $3.6 million and $3.6 million at December 31, 2022 and 2021, respectively.
Goodwill
In 2021, the Company acquired HCS-Electronic Materials for a total purchase price of $398.9 million, and recorded goodwill of $181.3 million. Goodwill of $157.0 million and $24.3 million associated with the HCS-Electronic Materials acquisition was allocated to the Electronic Materials and Performance Materials segments, respectively.
The balance of goodwill at December 31, 2022 and 2021 was $319.5 million and $318.6 million, respectively.
A summary of changes in goodwill by reportable segment is as follows:
(Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsTotal
Balance at December 31, 2020$1,899 $50,527 $92,490 $144,916 
Acquisition23,904 154,277 — 178,181 
Impairment charge— — — — 
Other— (284)(4,193)(4,477)
Balance at December 31, 2021$25,803 $204,520 $88,297 $318,620 
Acquisition— — 
Impairment charge— — — — 
Other354 2,150 (1,626)878 
Balance at December 31, 2022$26,157 206,670 $86,671 $319,498 
Due to recent acquisitions, the Company elected to perform a quantitative annual impairment assessment of its reporting units' goodwill as of October 1, 2022 and determined that the estimated fair values for each of its reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's Precision Optics reporting unit exceeded the carrying value by less than 10%.
Management believes the future sales growth and EBITDA margins in the long range plan, terminal growth rate and the discount rate used in the valuations requires significant use of judgment. If any of our reporting units do not meet our long range plan estimates or our discount rate increase significantly, we could be required to perform an interim goodwill impairment analysis or recognize charges in future periods. Any impairment charges that the Company may take in the future could be material to its consolidated results of operations and financial condition. The assumptions used for the reporting units with fair values exceeding carrying values of less than 10% are more sensitive to future performance and will be monitored accordingly.
The results of the Company's 2022 and 2021 annual goodwill impairment assessments indicated that no goodwill impairment existed.
The Company's accumulated goodwill impairment losses were $20.6 million as of December 31, 2022, 2021 and 2020. Accumulated impairment losses were from the closure of the LAC reporting unit which was closed as of December 31, 2020.
v3.22.4
Debt
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt in the Consolidated Balance Sheets is summarized as follows:
 December 31,
(Thousands)20222021
Borrowings under Credit Agreement with average interest rate of 6.08% at December 31, 2022 and 2.12% at December 31, 2021
$143,250 $152,296 
Borrowings under the Term Loan Facility285,000 300,000 
Foreign debt7,541 2,252 
Total long-term debt outstanding435,791 454,548 
Current portion of long-term debt(21,105)(15,359)
Gross long-term debt$414,686 $439,189 
Unamortized deferred financing fees(3,810)(4,801)
Long-term debt$410,876 $434,388 
Maturities on long-term debt instruments as of December 31, 2022 are as follows:
(Thousands)
202321,105 
202430,337 
202530,337 
2026353,543 
2027204 
2028 and thereafter 265 
Total$435,791 


In 2021, the Company amended and restated our $375.0 million revolving credit facility (Credit Agreement) in connection with the HCS-Electronic Materials acquisition. A $300 million delayed draw term loan facility was added to the Credit Agreement and the maturity date of the Credit Agreement was extended from 2024 to 2026. Moreover, the Credit Agreement also provides for an uncommitted incremental facility whereby, under certain conditions, the Company may be able to borrow additional term loans in an aggregate amount not to exceed $150.0 million. On November 1, 2021, Materion borrowed the full $300 million available under the delayed draw term loan facility and used the proceeds to pay a portion of the purchase price of the HCS-Electronic Materials acquisition.

The Credit Agreement provides the Company and its subsidiaries with additional capacity to enter into facilities for the consignment of precious metals and copper, and provides enhanced flexibility to finance acquisitions and other strategic initiatives. Borrowings under the Credit Agreement are secured by substantially all of the assets of the Company and its direct subsidiaries, with the exception of non-mining real property, precious metals, copper and certain other assets.
In January 2023, we amended the Credit Agreement to transition U.S. dollar denominated borrowings from LIBOR to the Secured Overnight Financial Rate (SOFR) for both the revolving credit agreement and the term loan and to increase the cap on precious metals facilities from $600 million to $615 million.
The Credit Agreement allows the Company to borrow money at a premium over SOFR, following the January 2023 amendment, or prime rate and at varying maturities. The premium resets quarterly according to the terms and conditions available under the agreement. The Credit Agreement includes restrictive covenants relating to restrictions on additional indebtedness, acquisitions, dividends, and stock repurchases. In addition, the Credit Agreement includes covenants subject to a maximum leverage ratio and a minimum interest coverage ratio. We were in compliance with all of our debt covenants as of December 31, 2022 and December 31, 2021. Cash on hand up to $25 million can benefit the covenants and may benefit the borrowing capacity under the Credit Agreement. At December 31, 2022 and 2021, there was $428.3 million and $452.3 million outstanding under the Credit Agreement, respectively.
At December 31, 2022 and 2021 there was $46.5 million and $46.3 million letters of credit outstanding against the credit sub-facility, respectively. The Company pays a variable commitment fee that may reset quarterly (0.28% as of December 31, 2022) on the available and unborrowed amounts under the revolving credit line.
The available borrowings under the individual existing credit lines totaled $185.3 million as of December 31, 2022.
v3.22.4
Pensions and Other Post-Employment Benefits
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pensions and Other Post-Employment Benefits Pensions and Other Post-Employment Benefits
The obligation and funded status of the Company’s pension and other post-employment benefit plans are shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan.
  Pension BenefitsOther Benefits
(Thousands)2022202120222021
Change in benefit obligation
Benefit obligation at beginning of year$235,779 $246,107 $7,514 $8,190 
Service cost1,231 1,722 78 80 
Interest cost4,874 4,186 156 116 
Net pension curtailments and settlements(3,104)—  — 
Acquisition —  — 
Plan amendments —  — 
Actuarial (gain) loss(61,819)(8,448)(1,800)(112)
Benefit payments(5,821)(4,927)(443)(742)
Foreign currency exchange rate changes and other(3,108)(2,861) (18)
Benefit obligation at end of year168,032 235,779 5,505 7,514 
Change in plan assets
Fair value of plan assets at beginning of year227,340 226,176  — 
Plan settlements(3,104)—  — 
Acquisition —  — 
Actual return on plan assets(53,283)5,769  — 
Employer contributions831 955  — 
Employee contributions786 878  — 
Benefit payments from fund(6,175)(5,399) — 
Foreign currency exchange rate changes and other(1,799)(1,039) — 
Fair value of plan assets at end of year164,596 227,340  — 
Funded status at end of year$(3,436)$(8,439)$(5,505)$(7,514)
Amounts recognized in the Consolidated
Balance Sheets consist of:
Other assets$11,761 $18,566 $ $— 
Other liabilities and accrued items(536)(1,662)(754)(754)
Retirement and post-employment benefits(14,661)(25,343)(4,751)(6,760)
Net amount recognized$(3,436)$(8,439)$(5,505)$(7,514)
The benefit obligation decreased in 2022 due to actuarial gains that were driven by increases in the discount rate.
The following amounts are included within accumulated other comprehensive loss at December 31, 2022:
  Pension BenefitsOther Benefits
(Thousands)2022202120222021
Amounts recognized in other comprehensive income (before tax) consist of:
Net actuarial loss (gain)$43,039 $42,440 $(5,573)$(4,044)
Net prior service cost (credit)(617)(695)(556)(2,054)
Net transition obligation/(asset) 637 — — 
Net amount recognized$42,422 $42,382 $(6,129)$(6,098)
The following table provides information regarding the accumulated benefit obligation:
  Pension BenefitsOther Benefits
(Thousands)2022202120222021
Additional information
Accumulated benefit obligation for all defined benefit pension plans$167,366 $233,717 $ $— 
For defined benefit pension plans with benefit obligations in excess of plan assets:
Aggregate benefit obligation18,490 58,052  — 
Aggregate fair value of plan assets3,279 33,148  — 
For defined benefit pension plans with accumulated benefit obligations in excess of plan assets:
Aggregate accumulated benefit obligation17,833 56,043   
Aggregate fair value of plan assets3,279 33,148   

The following table summarizes components of net benefit cost:
  
Pension BenefitsOther Benefits
(Thousands)202220212020202220212020
Net benefit cost
Service cost$1,231 $1,722 $1,403 $78 $80 $59 
Interest cost4,874 4,186 5,234 156 116 213 
Expected return on plan assets(9,570)(9,881)(9,333) — — 
Amortization of prior service credit(78)(82)— (1,497)(1,497)(1,497)
Recognized net actuarial loss (gain)1,701 2,344 1,678 (272)(275)(332)
Net periodic benefit (credit) cost(1,842)(1,711)(1,018)(1,535)(1,576)(1,557)
Net pension curtailments and settlements(551)— 94  — — 
Total net benefit (credit) cost$(2,393)$(1,711)$(924)$(1,535)$(1,576)$(1,557)
 
Components of net periodic benefit cost, other than service cost, are included in Other non-operating (income) expense in the Consolidated Statements of Income. Additionally, Pension Benefit Guaranty Corporation premiums are reported within expected return on plan assets.
The following table summarizes amounts recognized in other comprehensive income (OCI):
  
Pension BenefitsOther Benefits
(Thousands)202220212020202220212020
Change in other comprehensive income
OCI at beginning of year$42,382 $48,673 $48,073 $(6,098)$(7,525)$(9,578)
Increase (decrease) in OCI:
Recognized during year — prior service cost (credit)78 82 — 1,497 1,497 1,497 
Recognized during year — net actuarial (losses) gains(1,701)(2,344)(1,678)272 275 332 
Occurring during year — prior service cost — (799) — — 
Occurring during year — net actuarial losses (gains)1,112 (4,553)3,146 (1,800)(345)224 
Other adjustments551 — (94) — — 
Foreign currency exchange rate changes524 25  — — 
OCI at end of year$42,422 $42,382 $48,673 $(6,129)$(6,098)$(7,525)
In determining the projected benefit obligation and the net benefit cost, as of a December 31 measurement date, the Company used the following assumptions:
 Pension BenefitsOther Benefits
 202220212020202220212020
Assumptions used to determine benefit obligations at fiscal year end
Discount rate
2.16% - 5.54%
0.22% - 3.02%
0.03% - 2.76%
5.52 %2.90 %2.45 %
Rate of compensation increase
1.75% - 3.00%
1.50% - 3.00%
1.50% - 3.00%
3.50 %3.00 %3.00 %
Assumptions used to determine net cost for the fiscal year
Discount rate
0.22% - 3.02%
0.03% - 2.76%
0.21% - 3.48%
2.90 %2.45 %3.20 %
Expected long-term return on plan assets
1.20% - 5.25%
1.20% - 5.75%
1.80% - 6.00%
N/AN/AN/A
Rate of compensation increase
1.50% - 3.00%
1.50% - 3.00%
1.50% - 3.00%
3.00 %3.00 %3.00 %
Discount Rate. The discount rate used to determine the present value of the projected and accumulated benefit obligation at the end of each year is established based upon the available market rates for high quality, fixed income investments whose maturities match the plan’s projected cash flows.
The Company uses a spot-rate approach to estimate the service and interest cost components of net periodic benefit cost for its defined benefit pension plans. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation.
Expected Long-Term Return on Plan Assets. Management establishes the domestic expected long-term rate of return assumption by reviewing historical trends and analyzing the current and projected market conditions in relation to the plan’s asset allocation and risk management objectives. Consideration is given to both recent plan asset performance as well as plan asset performance over various long-term periods of time, with an emphasis on the assumption being a prospective, long-term rate of return. Management consults with and considers the opinions of its outside investment advisers and actuaries when establishing the rate and reviews assumptions with the Audit Committee of the Board of Directors.
Rate of Compensation Increase. The rate of compensation increase assumption is no longer applicable for the domestic defined benefit due to the Company freezing the plan effective January 1, 2020. The rate of compensation assumption to determine the benefit obligation and net cost for the domestic retiree medical plan was 3.5% in 2022 and 3.0% in both 2022 and 2021.
Assumptions for the defined benefit pension plans in Germany, Liechtenstein, and England are determined separately from the U.S. plan assumptions, based on historical trends and current and projected market conditions in each respective country. One plan in Germany is unfunded.
Assumed health care trend rates at fiscal year end20222021
Health care trend rate assumed for next year6.00%6.00%
Rate that the trend rate gradually declines to (ultimate trend rate)5.00%5.00%
Year that the rate reaches the ultimate trend rate20322028

Plan Assets
The following tables present the fair values of the Company’s defined benefit pension plan assets as of December 31, 2022 and 2021 by asset category. The Company has some investments that are valued using net asset value (NAV) as the practical expedient and have not been classified in the fair value hierarchy. Refer to Note R for definitions of the fair value hierarchy.
 December 31, 2022
(Thousands)TotalLevel 1Level 2Level 3
Cash$1,058 $1,058 $ $ 
Equity securities (a)37,083 37,083   
Fixed-income securities (b)13,314 13,314   
Other types of investments:
Real estate fund (c)3,115 3,115   
Total54,570 54,570   
Investments measured at NAV: (d)
Pooled investment fund (e)103,142 
Multi-strategy hedge funds (f)6,812 
Private equity funds72 
Total assets at fair value$164,596 
 December 31, 2021
(Thousands)TotalLevel 1Level 2Level 3
Cash$4,777 $4,777 $— $— 
Equity securities (a)49,618 49,618 — — 
Fixed-income securities (b)14,344 14,344 — — 
Other types of investments:
Real estate fund (c)3,258 3,258 — — 
Total71,997 71,997 — — 
Investments measured at NAV: (d)
Pooled investment fund (e)147,832 
Multi-strategy hedge funds (f)7,438 
Private equity funds73 
Total assets at fair value$227,340 
(a)Equity securities are primarily comprised of corporate stock and mutual funds directly held by the plans. Equity securities are valued using the closing price reported on the active market on which the individual securities are traded.
(b)Fixed income securities are primarily comprised of governmental and corporate bonds directly held by the plans. Governmental and corporate bonds are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded.
(c)Includes a mutual fund that typically invests at least 80% of its assets in equity and debt securities of companies in the real estate industry or related industries or in companies which own significant real estate assets at the time of investment.
(d)Certain assets that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy.
(e)Pooled investment fund consists of various investment types including equity investments covering a range of geographies and including investment managers that hold long and short positions, property investments, and other multi-strategy funds which combine a range of different credit, equity, and macro-orientated ideas and dynamically allocate funds across asset classes.
(f)Includes a fund that invests in a broad portfolio of hedge funds.
The Company’s domestic defined benefit pension plan investment strategy, as approved by the Governance and Organization Committee of the Board of Directors, is to employ an allocation of investments that will generate returns equal to or better than the projected long-term growth of pension liabilities so that the plan will be self-funding. The return objective is to maximize investment return to achieve and maintain a 100% funded status over time, taking into consideration required cash contributions. The allocation of investments is designed to maximize the advantages of diversification while mitigating the risk and overall portfolio volatility to achieve the return objective. Risk is defined as the annual variability in value and is measured in terms of the standard deviation of investment return. Under the Company’s investment policies, allowable investments include domestic equities, international equities, fixed income securities, cash equivalents, and alternative securities (which include real estate, private venture capital investments, hedge funds, and tactical asset allocation). Ranges, in terms of a percentage of the total assets, are established for each allowable class of security. Derivatives may be used to hedge an existing security or as a risk reduction strategy. Current asset allocation guidelines are to invest 0% to 40% in equity securities, 60% to
90% in fixed income securities and cash, and up to 20% in alternative securities. Management reviews the asset allocation on a quarterly or more frequent basis and makes revisions as deemed necessary.
None of the plan assets noted above are invested in the Company’s common stock.

Cash Flows

Employer Contributions. The Company does not expect to contribute to its domestic defined benefit pension plan in 2023.

All plan participants with an accrued benefit may elect an immediate payout in lieu of their future monthly annuity if the lump sum amount does not exceed $100,000.
Estimated Future Benefit Payments. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 Other Benefits
(Thousands)Pension BenefitsGross Benefit
Payment
Net of
Medicare
Part D
Subsidy
20237,565 767 767 
20248,174 679 679 
20258,880 608 608 
20269,773 518 518 
202710,638 478 478 
2028 through 203256,634 1,815 1,815 
Other Benefit Plans
In addition to the plans shown above, the Company also has certain foreign subsidiaries with accrued unfunded pension and other post-employment arrangements. The liability for these arrangements was $0.5 million at December 31, 2022 and $1.1 million at December 31, 2021, and was included in retirement and post-employment benefits on the Consolidated Balance Sheets.
The Company also sponsors defined contribution plans available to substantially all U.S. employees. The Company’s annual defined contribution expense, including the expense for the enhanced defined contribution plan, was $13.1 million in 2022, $9.9 million in 2021, and $9.8 million in 2020.
v3.22.4
Accumulated Other Comprehensive (Loss) Income
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income
Changes in the components of accumulated other comprehensive (loss) income, including amounts reclassified out, for 2022, 2021, and 2020, and the balances in accumulated other comprehensive (loss) income as of December 31, 2022, 2021, and 2020 are as follows:
Gains and Losses
On Cash Flow Hedges
Pension and Post- Employment BenefitsForeign Currency Translation
(Thousands)Foreign CurrencyInterest RatePrecious MetalsCopper TotalTotal
Balance at December 31, 2019$1,324 $— $(452)$25 $897 $(41,346)$(5,013)$(45,462)
Other comprehensive income (loss) before reclassifications(1,268)— (1,675)218 $(2,725)(2,721)9,030 3,584 
Amounts reclassified from accumulated other comprehensive income222 — 2,041 354 2,617 (57)— 2,560 
Other comprehensive income (loss) before tax(1,046)— 366 572 (108)(2,778)9,030 6,144 
Deferred taxes on current period activity(241)— 84 129 (28)(651)— (679)
Other comprehensive income (loss) after tax(805)— 282 443 (80)(2,127)9,030 6,823 
Balance at December 31, 2020$519 $— $(170)$468 $817 $(43,473)$4,017 $(38,639)
Balance at December 31, 2020$519 $— $(170)$468 $817 $(43,473)$4,017 $(38,639)
Other comprehensive income (loss) before reclassifications2,252 — 508 2,444 5,204 4,428 (6,904)2,728 
Amounts reclassified from accumulated other comprehensive income123 — (193)(3,049)(3,119)437 — (2,682)
Other comprehensive income (loss) before tax2,375 — 315 (605)2,085 4,865 (6,904)46 
Deferred taxes on current period activity546 — 73 (137)482 1,094 — 1,576 
Other comprehensive income (loss) after tax1,829 — 242 (468)1,603 3,771 (6,904)(1,530)
Balance at December 31, 2021$2,348 $— $72 $— $2,420 $(39,702)$(2,887)$(40,169)
Balance at December 31, 2021$2,348 $— $72 $— $2,420 $(39,702)$(2,887)$(40,169)
Other comprehensive income (loss) before reclassifications(1,260)8,113 (259)— 6,594 (394)(5,869)331 
Amounts reclassified from accumulated other comprehensive income(176)(250)(126)— (552)386 — (166)
Other comprehensive income (loss) before tax(1,436)7,863 (385)— 6,042 (8)(5,869)165 
Deferred taxes on current period activity(331)1,808 (90)— 1,387 518 — 1,905 
Other comprehensive income (loss) after tax(1,105)6,055 (295)— 4,655 (526)(5,869)(1,740)
Balance at December 31, 2022$1,243 $6,055 $(223)$— $7,075 $(40,228)$(8,756)$(41,909)
Reclassifications of gains and losses on foreign currency cash flow hedges from accumulated other comprehensive income are recorded in Net sales in the Consolidated Statements of Income while gains and losses on precious metal cash flow hedges are recorded in Cost of sales in the Consolidated Statements of Income. Refer to Note R 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 O for additional details on pension and other post-employment expenses.
v3.22.4
Stock-based Compensation
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
The Company maintains two stock incentive plans (the 2006 Stock Incentive Plan and the 2006 Non-employee Director Equity Plan) that have been approved by its shareholders. These plans authorize the granting of option rights, stock appreciation rights (SARs), performance-restricted shares, performance shares, performance units, restricted shares, and restricted stock units (RSUs).
Stock-based compensation expense, which includes awards settled in shares and in cash and is recognized as a component of selling, general, and administrative (SG&A) expenses, was $9.0 million, $7.3 million, and $5.7 million in 2022, 2021, and 2020, respectively. The Company derives a tax deduction measured by the excess of the market value over the grant price at the date stock-based awards vest or are exercised. The Company recognized $1.0 million, $0.9 million, and $0.5 million of tax benefits in 2022, 2021, and 2020, respectively, relating to the issuance of common stock for the exercise/vesting of equity awards.
The following sections provide information on awards settled in shares.
SARs. The Company grants SARs to certain employees. Upon exercise of vested SARs, the participant will receive a number of shares of common stock equal to the spread (the difference between the market price of the Company’s common shares at the time of exercise and the strike price established on the grant date) divided by the common share price. The strike price of the SARs is equal to the market value of the Company’s common shares on the day of the grant. The number of SARs available to be issued is established by plans approved by the shareholders. The vesting period and the life of the SARs are established at the time of grant. The exercise of the SARs is generally satisfied by the issuance of treasury shares. SARs vest in equal installments annually over three years. SARs expire in seven years.
The following table summarizes the Company's SARs activity during 2022:
(Shares in thousands)Number of
SARs
Weighted-
average
Exercise
Price Per
Share
Aggregate
Intrinsic
Value (thousands)
Weighted-
average
Remaining
Term (Years)
Outstanding at December 31, 2021260 $51.55 
Granted45 80.85 
Exercised(49)42.83 
Cancelled— — 
Outstanding at December 31, 2022256 58.38 $7,448 3.8
Vested and expected to vest as of December 31, 2022256 58.38 7,448 3.8
Exercisable at December 31, 2022160 50.56 5,928 2.8
A summary of the status and changes of shares subject to SARs and the related average price per share follows:
(Shares in thousands)Number of
SARs
Weighted-
average
Grant
Date
Fair Value
Nonvested as of December 31, 2021100 $17.98 
Granted45 25.87 
Vested(50)17.47 
Cancelled— — 
Nonvested as of December 31, 202295 $21.97 
    
As of December 31, 2022, $1.3 million of expense with respect to non-vested SARs has yet to be recognized as expense over a weighted-average period of approximately 22 months. The total fair value of shares vested during 2022, 2021, and 2020 was $0.9 million, $0.8 million, and $1.5 million, respectively.
The weighted-average grant date fair value for 2022, 2021, and 2020 was $25.87, $20.66, and $13.67, respectively. The fair value will be amortized to compensation cost on a straight-line basis over the vesting period of three years, or earlier if the employee is retirement eligible and continued vesting is approved by the Board of Directors as defined in the Plan. Stock-based compensation expense relating to SARs was $0.9 million in each of the last three years.
The total intrinsic value of stock options exercised during 2022, 2021 and 2020 was $2.1 million, $1.6 million and $0.5 million, respectively.
The fair value of the SARs was estimated on the grant date using the Black-Scholes pricing model with the following assumptions:
202220212020
Risk-free interest rate1.56 %0.57 %1.41 %
Dividend yield0.6 %0.7 %0.9 %
Volatility38.5 %37.6 %31.8 %
Expected lives (in years)4.44.64.8
The risk-free rate of return was based on U.S. Treasury yields with a maturity equal to the expected life of the award. The dividend yield was based on the Company's historical dividend rate and stock price. The expected volatility of stock was derived by referring to changes in the Company's historical common stock prices over a time-frame similar to the expected life of the award. In addition to considering the vesting period and contractual term of the award for the expected life assumption, the Company analyzes actual historical exercise experience for previously granted awards.
Restricted Stock Units (RSUs) - Employees. The Company may grant RSUs to employees of the Company. These units constitute an agreement to deliver shares of common stock to the participant at the end of the vesting period, which is defined at the date of the grant, and are forfeited should the holder’s employment terminate during the restriction period. The fair market value of the RSUs is determined on the date of the grant and is amortized over the vesting period. With the exception of the 2022 annual employee grant, the vesting period is typically three years unless the recipient is retirement eligible and continued vesting is approved by the Board of Directors. The 2022 annual employee grant vests in three equal annual installments on the anniversary of the grant date.
The fair value of RSUs settled in stock is based on the closing stock price on the date of grant. The weighted-average grant date fair value for 2022, 2021, and 2020 was $80.96, $68.62, and $51.55, respectively. Cash-settled RSUs are accounted for as liability-based compensation awards and adjusted based on the closing price of Materion’s common stock over the vesting period of three years.
Stock-based compensation expense relating to stock-settled RSUs was $3.5 million in 2022, $3.5 million in 2021, and $2.7 million in 2020. The unamortized compensation cost on the outstanding RSUs was $5.5 million as of December 31, 2022 and is expected to be recognized over a weighted-average period of 23 months. The total fair value of shares that vested during 2022 was $2.8 million, compared to $2.0 million in 2021 and $1.2 million in 2020.

The following table summarizes the stock-settled RSU activity during 2022:
(Shares in thousands)Number of
Shares
Weighted-
average
Grant Date
Fair Value
Outstanding at December 31, 2021162 $59.23 
Granted61 80.96 
Vested(49)58.29 
Forfeited(9)64.91 
Outstanding at December 31, 2022165 $67.31 

RSUs - Non-Employee Directors. In 2022, 2021, and 2020, 11,120, 9,904, and 15,976 RSUs, with a one year vesting period, were granted to certain non-employee members of the Board of Directors. The weighted-average grant date fair value of these RSUs was $81.59, $75.77, and $48.42 in 2022, 2021, and 2020, respectively. The Company recognized $0.9 million of expense related to these awards in 2022, compared to $0.8 million of expense in 2021 and $0.7 million of expense in 2020. At December 31, 2022, $0.3 million of expense with respect to non-vested RSU awards granted to the Board of Directors has yet to be recognized and will be amortized into expense over a weighted-average period of approximately four months.
Long-term Incentive Plans. Under the long-term incentive compensation plans, executive officers and selected other employees receive restricted stock unit awards based upon the Company’s performance over the defined period, typically three years. Total units earned for grants made in 2022, 2021, and 2020, may vary between 0% and 200% of the units granted based on the attainment of performance targets during the related three-year period. All grants will be settled in Materion common shares and are equity classified. Vesting of performance-based awards is contingent upon the attainment of threshold performance objectives.
The following table summarizes the activity related to performance-based RSUs during 2022:
(Shares in thousands)Number of
Shares
Weighted-
average
Grant Date
Fair Value
Outstanding at December 31, 2021119 $70.77 
Granted38 95.44 
Vested(43)69.84 
Forfeited(3)79.01 
Outstanding at December 31, 2022111 $79.31 
Compensation expense is based upon the performance projections for the plan period of three years, the percentage of requisite service rendered, and the fair market value of the Company’s common shares on the date of grant. The offset to the compensation expense for the portion of the award to be settled in shares is recorded within shareholders’ equity and was $3.6 million for 2022, $2.2 million for 2021, and $2.0 million for 2020.
Directors' Deferred Compensation. Non-employee directors may defer all or part of their compensation into the Company’s common stock. The fair value of the deferred shares is determined at the share acquisition date and is recorded within shareholders’ equity. At December 31, 2022, shareholders’ equity included 0.1 million shares related to this plan.
v3.22.4
Fair Value Information and Derivative Financial Instruments
12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value Information and Derivative Financial Instruments Fair Value Information and Derivative Financial Instruments
The Company measures and records financial instruments at fair value. A hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based upon 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 on the Consolidated Balance Sheets at December 31, 2022 and 2021:
  Fair Value Measurements
(Thousands)TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Other
Significant
Unobservable
Inputs
(Level 3)
December 31, 2022
Financial Assets
Deferred compensation investments$3,001 $3,001 $ $ 
Foreign currency forward contracts1,291  1,291  
Interest rate swap7,863 7,863 
Precious metal swaps118  118  
Total$12,273 $3,001 $9,272 $ 
Financial Liabilities
Deferred compensation liability$3,001 $3,001 $ $ 
Foreign currency forward contracts1,757  1,757  
Interest rate swap  
Precious metal swaps411  411  
Total$5,169 $3,001 $2,168 $ 
December 31, 2021
Financial Assets
Deferred compensation investments$4,246 $4,246 $— $— 
Foreign currency forward contracts3,368 — 3,368 — 
Precious metal swaps116 — 116 — 
Total$7,730 $4,246 $3,484 $— 
Financial Liabilities
Deferred compensation liability$4,246 $4,246 $— $— 
Foreign currency forward contracts136 — 136 — 
Precious metal swaps24 — 24 — 
Total$4,406 $4,246 $160 $— 
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 Company's deferred compensation investments and liabilities are based on the fair value of the investments corresponding to the employees’ investment selections, primarily in mutual funds, based on quoted prices in active markets for identical assets. Deferred compensation investments are primarily presented in Other assets. Deferred compensation liabilities are primarily presented in Other long-term liabilities.
Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company's long-term variable-rate debt is a reasonable estimate of its fair value. As noted in Note R, the Company entered into a $100.0 million interest rate swap to hedge the interest rate risk on the fixed rate portion of the Credit Agreement. The fair value of the interest rate swap asset was $7.9 million as of December 31, 2022, and was determined using level 2 inputs. The total of the outstanding amount on the fixed rate debt and the fair value of the interest rate swap approximates the total fair value of the fixed rate debt as of December 31, 2022.
The carrying values of the other working capital items in the Consolidated Balance Sheets approximate fair values at December 31, 2022 and 2021.
The Company uses derivative contracts to hedge portions of its foreign currency exposures and may also use derivatives to hedge a portion of its precious metal and interest expense fluctuations. The objectives and strategies for using derivatives in these areas are as follows:
Interest Rate. On March 4, 2022, the Company entered into a $100.0 million interest rate swap to hedge the interest rate risk on the Credit Agreement described in Note P. The swap hedges the change in 1-month LIBOR from March 4, 2022 to November 2, 2026. In February 2023 we amended the terms of the interest rate swap to hedge the change in 1-month
USD-SOFR. The purpose of this hedge is to manage the risk of changes in the monthly interest payments attributable to changes in the benchmark interest rate.
Foreign Currency.  The Company sells a portion of its products to overseas customers in their local currencies, primarily in 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, the 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.
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 product containing precious metal is fabricated and delivered to the customer, the metal content is purchased out of consignment based on the current market price. The price paid by the Company for the precious metal forms the basis for the price charged to the customer for the metal content in the product. 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 that changes in prices could have on the Company's margins and operating profit. The consigned metal is owned by precious metal consignors that charge the Company consignment fees based upon the value of the metal as it fluctuates while on consignment. Each precious metal consignor retains title to its consigned precious metal until it is purchased by the Company, and it is the Company’s typical practice to purchase metal out of consignment only after a product containing that metal has been purchased by one of our customers.
In certain instances, a customer may want to fix 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 out of consignment 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 refined and purchased, thereby reducing the exposure to adverse movements in the price of the metal. The Company may also enter into hedges to mitigate the risk relating to the prices of the metals that we process or refine.
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 in these instances.
The Company may from time to time elect to purchase precious metal and hold in inventory rather than on consignment due to potential consignment line limitations or other factors. These purchases are infrequent and, when made 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 paid when the metal is transferred back to the consignment line, thereby limiting any price exposure during the time when the metal was owned by the Company.
Copper. The Company also uses copper in its 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 the Company's price exposure to copper is generally in balance, there can be a lag between the change in the Company's cost and the pass-through to its customers, resulting in higher or lower margins in a given period. To mitigate this impact, the Company hedges a portion of this pricing risk.
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 exposures. 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. Foreign currency contracts are typically layered in at different times for a specified exposure period in order to minimize the impact of market rate movements.
The use of derivatives is governed by policies adopted by the Audit and Risk Committee of the Board of Directors. The Company will only enter into a derivative contract if there is an underlying identified exposure. Contracts are typically held to maturity. The Company does not engage in derivative trading activities and does not use derivatives for speculative purposes. The Company only uses hedge contracts that are denominated in the same currency or 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 OCI until the hedged item is recognized in earnings. The ineffective portion of a derivative’s fair value, if any, is recognized in earnings immediately. 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 December 31, 2022 and 2021:
 December 31, 2022December 31, 2021
(Thousands)Notional
Amount
Fair
Value
Notional
Amount
Fair
Value
Foreign currency forward contracts
Prepaid expenses$12,242 $791 $55,063 $2,132 
Other liabilities and accrued items17,061 1,048 9,425 128 
These outstanding foreign currency derivatives were related to balance sheet hedges and intercompany loans. Other-net included foreign currency gains related to these derivatives of $0.2 million in 2022, compared to $1.2 million of foreign currency gains in 2021.
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 at December 31, 2022 and 2021:
 December 31, 2022
Fair Value
(Thousands)Notional
Amount
Prepaid and other current assetsOther assetsOther liabilities and accrued itemsOther long-term liabilities
Foreign currency forward contracts - yen$2,985 $145 $ $74 $26 
Foreign currency forward contracts - euro25,712 355  472 137 
Precious metal swaps8,758 118  411  
Interest rate swap100,000 3,114 4,749   
Total$137,455 $3,732 $4,749 $957 $163 
December 31, 2021
Fair Value
Notional
Amount
Prepaid and other current assetsOther assetsOther liabilities and accrued itemsOther long-term liabilities
Foreign currency forward contracts - yen$3,907 $131 $$— $— 
Foreign currency forward contracts - euro28,412 1,102 — — 
Precious metal swaps6,256 116 — 24 
Total$38,575 $1,349 $$24 $
All of these contracts were designated and effective as cash flow hedges. No ineffectiveness expense was recorded in 2022, 2021, or 2020.
The fair value of derivative contracts recorded in accumulated other comprehensive income (loss) totaled $7.4 million and $1.3 million as of December 31, 2022 and December 31, 2021, respectively. Deferred gains of $3.9 million at December 31, 2022 are expected to be reclassified to earnings within the next 18-month period.
The following table summarizes the pre-tax amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification for years ended December 31, 2022 and 2021: 
(Thousands)20222021
Hedging relationshipLine item
Foreign currency forward contractsNet sales$(176)$123 
Precious metal swapsCost of sales(126)(193)
Interest rate swapInterest expense - net(250)— 
Copper swapsCost of sales (3,049)
Total$(552)$(3,119)
The derivative activity in the table above is reflected in cash flows from operating activities.
v3.22.4
Contingencies and Commitments
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Contingencies and Commitments Contingencies and Commitments
Beryllium Cases
The Company is a defendant from time to time in proceedings in various state and federal courts brought by plaintiffs alleging that they have contracted, or have been placed at risk of contracting, beryllium sensitization or Chronic Beryllium Disease (CBD) or related ailments as a result of exposure to beryllium. Plaintiffs in beryllium cases seek recovery under theories of negligence and various other legal theories and seek compensatory and punitive damages, in many cases of an unspecified sum. Spouses, if any, often claim loss of consortium.
Employee cases, in which plaintiffs have a high burden of proof, have historically involved relatively small losses to the Company. Third-party plaintiffs (typically employees of customers) face a lower burden of proof than do the Company’s employees, but these cases have generally been covered by varying levels of insurance. Management has vigorously contested the beryllium cases brought against the Company.
Non-employee beryllium cases are covered by insurance, subject to certain limitations. The insurance covers defense costs and indemnity payments (resulting from settlements or court verdicts) and is subject to various levels of deductibles. Defense and indemnity costs were less than or equal to the deductible in both 2022 and 2021.
As of December 31, 2022, the Company was a defendant in one beryllium litigation cases, which was also outstanding as of December 31, 2021. The Company does not expect the resolution of this case to have a material impact on its consolidated financial statements. During 2022, one beryllium litigation case was resolved.
Although it is not possible to predict the outcome of any pending litigation, the Company provides for costs related to litigation matters when a loss is probable, and the amount is reasonably estimable. Litigation is subject to many uncertainties, and it is possible that some of the actions could be decided unfavorably in amounts exceeding the Company’s reserves. An unfavorable outcome or settlement of a beryllium case or adverse media coverage could encourage the commencement of additional similar litigation. The Company is unable to estimate its potential exposure to unasserted claims.

Based upon currently known facts and assuming collectability of insurance, the Company does not believe that resolution of the current or any potential future beryllium proceedings will have a material adverse effect on the financial condition or cash flow of the Company. However, the Company’s results of operations could be materially affected by unfavorable results in one or more cases.
Environmental Proceedings
The Company has an active program for environmental compliance that includes the identification of environmental projects and estimating the impact on the Company’s financial performance and available resources. Environmental expenditures that
relate to current operations, such as wastewater treatment and control of airborne emissions, are either expensed or capitalized as appropriate. The Company records reserves for the probable costs for identified environmental remediation projects. The Company’s environmental engineers perform routine ongoing analyses of the remediation sites and will use outside consultants to assist in their analyses from time to time. Reserve accruals are based upon their analyses and are established based on the reasonably estimable loss or range of loss. The accruals are revised for the results of ongoing studies, changes in strategies, inflation, and for differences between actual and projected costs. The accruals may also be affected by rulings and negotiations with regulatory agencies. The timing of payments often lags the accrual, as environmental projects typically require a number of years to complete.
The environmental reserves recorded represent the Company's best estimate of what is reasonably possible and cover existing or currently foreseen projects based upon current facts and circumstances. For sites where the investigative work and work plan development are substantially complete, the Company does not believe that it is reasonably possible that the cost to resolve environmental matters will be materially different than what has been accrued. For sites that are in the preliminary stages of investigation, the ultimate loss contingencies cannot be reasonably determined at the present time. As facts and circumstances change, the ultimate cost may be revised, and the recording of additional costs may be material in the period in which the additional costs are accrued. The Company does not believe that the ultimate liability for environmental matters will have a material impact on its financial condition or liquidity due to the nature of known environmental matters and the extended period of time over which environmental remediation normally takes place.
The undiscounted reserve balance at the beginning of the year, the amounts expensed and paid, and the balance at December 31, 2022 and 2021 are as follows:
(Thousands)20222021
Reserve balance at beginning of year$4,770 $5,476 
Expensed180 185 
Paid(480)(891)
Reserve balance at end of year$4,470 $4,770 
Ending balance recorded in:
Other liabilities and accrued items$440 $539 
Other long-term liabilities4,030 4,231 
The majority of expenses in both 2022 and 2021 was for various remediation projects at the Elmore, Ohio plant site.
Asset Retirement Obligations
The Company has asset retirement obligations related to its mine in Utah, as well as for certain leased facilities where the Company is contractually obligated to restore the facility back to its original condition at the end of the lease. The following represents a roll forward of the Company's asset retirement obligation liabilities for the years ended December 31, 2022 and 2021:
(Thousands)20222021
Asset retirement obligation at beginning of period$2,231 $1,765 
Accretion expense198 134 
Change in liability— 332 
Asset retirement obligation at end of period$2,429 $2,231 
These obligations are reflected in Other long-term liabilities on the Consolidated Balance Sheet.
Other
The Company is subject to various legal or other proceedings that relate to the ordinary course of its business. The Company believes that the resolution of these proceedings, individually or in the aggregate, will not have a material adverse impact upon the Company’s consolidated financial statements.
On October 14, 2020, Garett Lucyk, et al. v. Materion Brush Inc., et. al., case number 20CV0234, a wage and hour purported collective and class action, was filed in the Northern District of Ohio against the Company and its subsidiary, Materion Brush Inc. (collectively, the Company). Plaintiff, a former hourly production employee at the Company's Elmore, Ohio facility, alleges that he and other similarly situated employees are not paid for all time they spend donning and doffing personal protective equipment in violation of the Fair Labor Standards Act and Ohio law. Plaintiff filed a motion for conditional certification, which the Company opposed. On August 2, 2022, the Court conditionally certified a class of employees at the Company’s Elmore facility only and rejected certification of a class across the Company’s other facilities. In November 2022, the parties reached a settlement for an immaterial amount. The settlement is pending court approval.
At December 31, 2022, the Company had outstanding letters of credit totaling $46.5 million related to workers’ compensation, consigned precious metal guarantees, environmental remediation issues, and other matters. The majority of the Company's outstanding letters of credit expire in 2023 and are expected to be renewed.
v3.22.4
Valuation And Qualifying Accounts
12 Months Ended
Dec. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Valuation and Qualifying Accounts
Materion Corporation and Subsidiaries
Schedule II—Valuation and Qualifying Accounts
 
(Thousands)
Valuation allowance on deferred tax assets:202220212020
Balance at Beginning of Period$4,957 $14,134 $17,676 
Additions:
Charged to Costs and Expenses (1)373 497 884 
Charged to Other Accounts(3) 1,019 — 
Deductions (2)$(395)$(10,693)$(4,426)
Balance at End of Period$4,935 $4,957 $14,134 
(1) Increase in valuation allowance is recorded as a component of the provision for income taxes.
(2) 2021 includes a $6.9 million valuation allowance reversal in the fourth quarter of 2021 and a $3.8 million balance sheet impact to deferred taxes.
(3) Change in foreign currency exchange rates and acquired reserves. See acquisition footnote B for acquisition details.
v3.22.4
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Organization
Organization:  Materion Corporation (the Company) is a holding company with subsidiaries that have operations in the United States, Europe, and Asia. These operations manufacture advanced engineered materials used in a variety of end markets, including semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center. The Company has four reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. Other includes unallocated corporate costs.
Refer to Note C for additional segment details. The Company distributes its products through a combination of company-owned facilities and independent distributors and agents.
Business Combinations
Business Combinations: The Company records assets acquired and liabilities assumed at the date of acquisition at their respective fair values. Intangible assets acquired in a business combination are recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.
See Note B for further discussion of the acquisition of HCS-Electronic Materials which was completed on November 1, 2021.
Use of Estimates Use of Estimates:  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Consolidation Consolidation:  The Consolidated Financial Statements include the accounts of Materion Corporation and its subsidiaries. All of the Company’s subsidiaries were wholly owned as of December 31, 2022. Intercompany accounts and transactions are eliminated in consolidation.
Cash Equivalents Cash Equivalents:  All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents.
Accounts Receivable Accounts Receivable:  An allowance for doubtful accounts is maintained for the expected losses resulting from the inability of customers to pay amounts due. The Company considers the current market conditions and credit losses related to the Company's trade receivables based on the macroeconomic environment, geographic considerations, and other expected market trends. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns, and other analyses of historical data and trends. Accounts receivable were net of an allowance for credit losses of $0.6 million and $0.5 million at December 31, 2022 and December 31, 2021, respectively. The change in the allowance for credit losses includes expense and net write-offs, neither of which were material. The Company extends credit to customers based upon their financial condition, and collateral is not generally required.
Inventories Inventories: Inventories are stated at net realizable value. The associated inventory reserve was $0.4 million and $0.3 million at December 31, 2022 and 2021, respectively. All of the Company's inventories, except for its bertrandite ore mine which values inventory using a weighted average cost method, including raw materials, manufacturing supplies inventory as well as international (outside the U.S.) inventories, have been valued using the first-in, first-out (FIFO) method as of December 31, 2022 and 2021.
Property, Plant and Equipment
Property, Plant, and Equipment:  Property, plant, and equipment is stated on the basis of cost. Depreciation is computed principally by the straight-line method, except certain assets for which depreciation may be computed by the units-of-production method. The depreciable lives that are used in computing the annual provision for depreciation by class of asset are primarily as follows:
 Years
Land improvements
10 to 20
Buildings
20 to 40
Leasehold improvementsLife of lease
Machinery and equipment
3 to 15
Furniture and fixtures
4 to 10
Automobiles and trucks
3 to 8
Research equipment
3 to 10
Computer hardware
3 to 10
Computer software
3 to 10
An asset acquired under a finance lease will be recorded at the lesser of the present value of the projected lease payments or the fair value of the asset and will be depreciated in accordance with the above schedule. Leasehold improvements will be depreciated over the life of the improvement if it is shorter than the life of the lease. Repair and maintenance costs are expensed as incurred.
Mineral Resources and Mine Development
Mineral Resources and Mine Development: Property acquisition costs are capitalized as mineral resources on the balance sheet and are depleted using the units-of-production method based upon total estimated recoverable proven reserves of the beryllium-bearing bertrandite ore body. The Company uses beryllium pounds as the unit of accounting measure, and depletion expense is recorded on a pro-rata basis based upon the amount of beryllium pounds extracted as a percentage of total estimated beryllium pounds contained in the ore body.
Mine development costs at our open pit surface mines include drilling, infrastructure, other related costs to delineate an ore body and the removal of overburden to initially expose an ore body. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves.
In 2020, the Company expanded a mine to further develop an ore body. Since the pre-production phase ended when ore was first extracted from this mine, the Company recognized approximately $12.9 million of mine development costs in 2020 as a component of cost of sales. This expansion is expected to benefit future periods.
The cost of removing overburden and waste materials to access the ore body at an open-pit mine prior to the production phase is capitalized during the development of an open-pit mine and are capitalized at each pit. These costs are amortized as the ore is extracted using the units-of-production method based upon total estimated recoverable proven reserves for the individual pit. The Company uses beryllium pounds as the unit of accounting measure for recording amortization.
To the extent that the aforementioned costs benefit an entire ore body, the costs are amortized over the estimated useful life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block area.
Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of costs applicable to sales. All other drilling and related costs are expensed as incurred.
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets:  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. For the purpose of the goodwill impairment assessment, the Company has the option to perform a qualitative assessment (commonly referred to as "step zero") to determine whether further quantitative analysis of impairment of goodwill is necessary or a quantitative assessment ("step one") where the Company estimates the fair value of each reporting unit using a discounted cash flow method (income approach). Goodwill is assigned to the reporting unit, which is the operating segment level or one level below the operating segment. Intangible assets with finite lives are amortized using the straight-line method or effective interest method, as applicable, over the periods estimated to be benefited, which is generally 20 years or less. Finite-lived intangible assets are also reviewed for impairment if facts and circumstances warrant.
Long-Lived Asset Impairment Long-Lived Asset Impairment: Management performs impairment tests of long-lived assets, including property and equipment, whenever an event occurs or circumstances change that indicate that the carrying value may not be recoverable or the useful life of the asset has changed. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future undiscounted cash flows generated by the asset group are less than its carrying value.  If such undiscounted cash flows indicate that the carrying value of the asset group is not recoverable, impairment losses are measured by comparing the estimated fair value of the asset group to its carrying amount.
Derivatives Derivatives:  The Company recognizes all derivatives 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, a component of shareholders’ equity, until the hedged item is recognized in earnings. If the derivative is designated as a fair value hedge, changes in fair value are offset against the change in the fair value of the hedged asset, liability, or commitment through earnings. The ineffective portion of a derivative’s change in fair value, if any, is recognized in earnings immediately. If a derivative is not a hedge, changes in its fair value are adjusted through the income statement.
Asset Retirement Obligation Asset Retirement Obligation:  The Company records a liability to recognize the legal obligation to remove an asset at the time the asset is acquired or when the legal liability arises. The liability is recorded for the present value of the ultimate obligation by discounting the estimated future cash flows using a credit-adjusted risk-free interest rate. The liability is accreted over time, with the accretion charged to expense. An asset equal to the fair value of the liability is recorded concurrent with the liability and depreciated over the life of the underlying asset.
Unearned Income
Unearned Income:  Expenditures for capital equipment to be reimbursed under government contracts are recorded in property, plant, and equipment, while the reimbursements for those expenditures are recorded in unearned income, a liability on the balance sheet. When the assets subject to reimbursement are placed in service, the total cost is depreciated over the useful lives, and the unearned income liability is reduced and credited to cost of sales on the Consolidated Statements of Income ratably with the annual depreciation expense.
Also included in Unearned Income as of December 31, 2022 and 2021, are $85.9 million and $72.6 million, respectively, of customer prepayments. See Note K for additional discussion.
Advertising Costs Advertising Costs: The Company expenses all advertising costs as incurred. Advertising costs were $0.3 million in 2022, 2021, and 2020.
Stock-based Compensation Stock-based Compensation:  The Company recognizes stock-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Stock-based awards include performance-based restricted stock units (PRSUs), restricted stock units (RSUs), and stock appreciation rights (SARs). The fair value of PRSUs and RSUs is primarily based on the closing market price of a share of the Company's common stock on the date of grant, modified as appropriate to take into account the features of such grants. SARs are granted with an exercise price equal to the closing price of the Company's common shares on the date of grant. The fair value of SARs is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. The portion of the PRSU awards that are valued based on the Company's total shareholder return as compared to peers is valued using Monte Carlo simulations, which incorporates assumptions regarding the expected volatility, the expected correlation, and the risk-free interest rate. See Note Q for additional information about stock-based compensation.
Capitalized Interest Capitalized Interest: Interest expense associated with active capital asset construction and mine development projects is capitalized and amortized over the future useful lives of the related assets.
Income Taxes Income Taxes:  The Company uses the liability method in measuring the provision for income taxes and recognizing deferred tax assets and liabilities on the balance sheet. The Company will record a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized, as warranted by current facts and circumstances. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties and will record a liability for those tax benefits that have a less than 50% likelihood of being sustained upon examination by the taxing authorities.
Net Income Per Share Net Income Per Share:  Basic earnings per share (EPS) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive common stock equivalents as appropriate using the treasury stock method.
New Pronouncements Adopted
New Pronouncements Adopted:  
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This guidance requires companies to apply ASC 606 on the acquisition date to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This is an exception to the recognition and measurement principle in ASC 805 which generally requires an acquirer to recognize and measure the assets it acquires and the liabilities it assumes at fair value on the acquisition date. For
public entities, the guidance is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. The Company has early adopted this guidance and has applied it to the accounting for contract assets and contract liabilities acquired as part of the HCS-Electronic Materials (as defined in Note B) acquisition.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance is available immediately and the Company has applied this guidance in accounting for the interest rate swap as discussed in Note R. Any additional reference rate reform impacts will be accounted for in accordance with ASU 2020-04.
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.
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.
Shipping and Handling Costs: The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill its promise to transfer the associated products. Accordingly, customer payments for shipping and handling costs are recorded as a component of net sales, and related costs are recorded as a component of cost of sales.
Taxes Collected from Customers and Remitted to Governmental Authorities: Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority.
Product Warranty: Substantially all of the Company’s customer contracts contain a warranty that provides assurance that the purchased product will function as expected and in accordance with certain specifications. The warranty is intended to safeguard the customer against existing defects and does not provide any incremental service to the customer.
Transaction Price Allocated to Future Performance Obligations: ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at December 31, 2022. 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 December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $63.9 million.
Contract Costs: The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs primarily relate to sales commissions, which are included in selling, general, and administrative expenses.
Contract Balances: The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:
(Thousands)December 31, 2022December 31, 2021$ change% change
Accounts receivable, trade
$215,726 $213,584 $2,142 %
Unbilled receivables
10,765 7,961 2,804 35 %
Unearned revenue
15,496 7,770 7,726 99 %
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 2022.
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 $7.1 million of the December 31, 2021 unearned amounts as revenue during 2022. The Company recognized approximately $6.8 million of the December 31, 2020 unearned amounts as revenue during 2021.

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.
Reclassifications
Reclassifications
Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. These reclassifications had no impact on the Company’s financial position, results of operations, or cash flows.
v3.22.4
Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of depreciable lives by class of assets The depreciable lives that are used in computing the annual provision for depreciation by class of asset are primarily as follows:
 Years
Land improvements
10 to 20
Buildings
20 to 40
Leasehold improvementsLife of lease
Machinery and equipment
3 to 15
Furniture and fixtures
4 to 10
Automobiles and trucks
3 to 8
Research equipment
3 to 10
Computer hardware
3 to 10
Computer software
3 to 10
v3.22.4
Acquisition (Tables)
12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisitions, by Acquisition
(Thousands)Initial Allocation of ConsiderationMeasurement Period AdjustmentsFinal Allocation
Assets:
Cash and cash equivalents$3,685 $— $3,685 
Accounts receivable28,352 35 28,387 
Inventories70,681 — 70,681 
Prepaid and other current assets660 (450)210 
Property, plant, and equipment 44,681 355 45,036 
Operating lease, right-of-use assets6,120 — 6,120 
Intangible assets107,800 — 107,800 
Other long-term assets4,528 — 4,528 
Goodwill178,181 3,144 181,325 
Total assets acquired$444,688 $3,084 $447,772 
Liabilities:
Accounts payable$12,139 $(240)$11,899 
Salaries and wages2,516 $625 3,141 
Other liabilities and accrued items28 $— 28 
Income taxes2,183 $(457)1,726 
Other long-term liabilities5,543 $215 5,758 
Operating lease liabilities6,042 $— 6,042 
Deferred income taxes20,300 $(30)20,270 
Total liabilities assumed$48,751 $113 $48,864 
Net assets acquired$395,937 $2,971 $398,908 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The following table reports the intangible assets by asset category as of the closing date:
(Thousands)Value at AcquisitionUseful Life
Customer relationships$50,200 13 years
Technology35,300 13 years
Trade name22,300 15 years
Total$107,800 
Pro Forma Information
Had the HCS-Electronic Materials acquisition occurred as of the beginning of fiscal 2020, the Company's sales and income (loss) before taxes would have been as follows:
(Unaudited)
Year Ended December 31,
20212020
Net Sales$1,659,620 $1,308,300 
Profit income (loss) before taxes$91,551 $(17,761)
v3.22.4
Segment Reporting and Geographic Information (Tables)
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Reportable Segments
The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for 2022 and 2021:
(Thousands)20222021
Net sales:
Performance Materials(1)
$671,525 $511,874 
Electronic Materials(1)
$971,902 866,816 
Precision Optics113,682 131,954 
Other — 
Net sales1,757,109 1,510,644 
Segment EBITDA:
Performance Materials$125,227 89,028 
Electronic Materials67,806 $44,852 
Precision Optics13,753 25,854 
Other(28,345)(33,371)
Total Segment EBITDA178,441 126,363 
Income tax expense17,110 4,851 
Interest expense - net21,905 4,901 
Depreciation, depletion and amortization53,436 44,137 
Net income$85,990 $72,474 
(1) Excludes inter-segment sales of $0.7 million for Performance Materials and $14.0 million for Electronic Materials for 2022 and $0.2 million for Performance Materials and $13.9 million for Electronic Materials for 2021. Inter-segment sales are eliminated in consolidation.
Sales and Long-Lived Assets Attributed to Countries Based Upon the Location of Customers
Other geographic information includes the following:
(Thousands)202220212020
Net sales
United States$867,053 $794,862 $641,727 
Asia519,395 426,303 329,968 
Europe355,691 270,213 189,281 
All other14,970 19,266 15,298 
Total$1,757,109 $1,510,644 $1,176,274 
Property, plant, and equipment, net by country deployed
United States$372,779 $327,969 $223,340 
All other75,986 81,006 86,346 
Total$448,765 $408,975 $309,686 
Disaggregation of Revenue by Segment
The following table disaggregates revenue for each segment by end market for 2022 and 2021:
 (Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsOtherTotal
2022
End Market
Semiconductor$8,666 $784,517 $5,107 $ $798,290 
Industrial168,012 47,407 31,948  247,367 
Aerospace and Defense110,884 5,882 16,988  133,754 
Consumer Electronics49,859 1,144 22,666  73,669 
Automotive93,581 7,590 9,922  111,093 
Energy50,021 98,844   148,865 
Telecom and Data Center65,230 149   65,379 
Other125,272 26,369 27,051  178,692 
    Total$671,525 $971,902 $113,682 $ $1,757,109 
2021
End Market
Semiconductor$8,481 $683,085 $2,572 $ $694,138 
Industrial123,337 45,025 32,779  201,141 
Aerospace and Defense86,046 5,509 23,622  115,177 
Consumer Electronics41,694 1,184 32,485  75,363 
Automotive105,466 7,321 8,356  121,143 
Energy23,913 99,330 —  123,243 
Telecom and Data Center53,510 173 —  53,683 
Other69,427 25,189 32,140  126,756 
    Total$511,874 $866,816 $131,954 $— $1,510,644 
v3.22.4
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:
(Thousands)December 31, 2022December 31, 2021$ change% change
Accounts receivable, trade
$215,726 $213,584 $2,142 %
Unbilled receivables
10,765 7,961 2,804 35 %
Unearned revenue
15,496 7,770 7,726 99 %
v3.22.4
Other-net (Tables)
12 Months Ended
Dec. 31, 2022
Other-net [Abstract]  
Summary of other-net expense
Other-net is summarized for 2022, 2021, and 2020 as follows:
 (Income) Expense
(Thousands)202220212020
Metal consignment fees$12,212 $9,305 $8,587 
Amortization of intangible assets12,400 5,973 2,377 
Foreign currency loss (gain)(679)1,573 (2,569)
Net (gain) loss on disposal of fixed assets14 (282)466 
Other items290 168 (398)
Total other-net$24,237 $16,737 $8,463 
v3.22.4
Interest Expense-net (Tables)
12 Months Ended
Dec. 31, 2022
Interest [Abstract]  
Summary of interest incurred, capitalized and paid
The following chart summarizes the interest incurred, capitalized, and paid in 2022, 2021, and 2020:
(Thousands)202220212020
Interest incurred, net$23,014 $5,277 $3,889 
Less: Capitalized interest1,109 376 10 
Total net expense$21,905 $4,901 $3,879 
Interest paid$21,190 $3,652 $3,442 
v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income tax expenses benefit
Income (loss) before income taxes and income tax expense (benefit) are comprised of the following:
(Thousands)202220212020
Income (loss) before income taxes:
Domestic$90,403 $54,684 $(1,153)
Foreign12,697 22,641 9,428 
Total income (loss) before income taxes$103,100 $77,325 $8,275 
Income tax expense:
Current income tax expense (benefit):
Domestic$12,571 $14,603 $812 
Foreign2,806 3,205 1,851 
Total current$15,377 $17,808 $2,663 
Deferred income tax (benefit) expense:
Domestic$588 $(7,953)$(5,641)
Foreign1,145 (5,004)(4,209)
Total deferred$1,733 $(12,957)$(9,850)
Total income tax expense (benefit)$17,110 $4,851 $(7,187)
Effective income tax rate reconciliation
A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows:
202220212020
U.S. federal statutory rate21.0 %21.0 %21.0 %
State and local income taxes, net of federal tax effect1.7 (0.3)(10.0)
Effect of excess of percentage depletion over cost depletion(3.1)(3.4)(43.0)
Foreign derived intangible income deduction(1.7)(2.3)(1.8)
Non-deductible goodwill impairment — 7.1 
Research and development tax credit(2.0)(1.2)(16.4)
Impact of foreign operations0.6 0.3 (5.3)
Non-deductible transaction costs 1.6 6.9 
Interest from tax authorities — (3.8)
Adjustment to unrecognized tax benefits(0.5)(1.9)1.8 
Equity compensation(0.9)(0.5)(5.3)
Non-deductible officers' compensation1.2 1.4 6.8 
Valuation allowance0.6 (8.5)(45.5)
Other items(0.3)0.1 0.6 
Effective tax rate16.6 %6.3 %(86.9)%
Deferred tax assets and liabilities Deferred tax assets and (liabilities) recorded in the Consolidated Balance Sheets consist of the following:
 December 31,
(Thousands)20222021
Asset (liability)
Post-employment benefits other than pensions$1,230 $1,714 
Other reserves1,831 1,901 
Deferred compensation3,850 3,263 
Environmental reserves1,321 1,358 
Inventory6,118 — 
Research expenditures7,069 — 
Revenue recognition7,878 5,027 
Lease liabilities12,651 11,639 
Interest expense carryforward12,470 14,163 
Pensions 1,393 
Accrued compensation expense5,477 6,410 
Net operating loss and credit carryforwards9,915 11,423 
Subtotal69,810 58,291 
Valuation allowance(4,935)(4,957)
Total deferred tax assets64,875 53,334 
Depreciation(42,481)(24,484)
Lease assets(12,078)(11,184)
Inventory (2,329)
Amortization(32,925)(35,542)
Mine development (917)
Pensions(400)— 
Unrealized gains
(1,940)(663)
Total deferred tax liabilities(89,824)(75,119)
Net deferred tax liabilities$(24,949)$(21,785)
Reconciliation of unrecognized tax benefits
A reconciliation of the Company’s unrecognized tax benefits for the year-to-date periods ended December 31, 2022 and 2021 is as follows:
(Thousands)20222021
Balance at January 1$1,142 $2,360 
Additions to tax provisions related to the current year 431 
Additions to tax positions related to prior years — 
Reduction to tax positions related to prior years(8)(45)
Lapses on statutes of limitations(482)(1,604)
Balance at December 31$652 $1,142 
v3.22.4
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Computation of basic and diluted net earnings per share
The following table sets forth the computation of basic and diluted EPS:
(Thousands except per share amounts)202220212020
Numerator for basic and diluted EPS:
Net income$85,990 $72,474 $15,462 
Denominator:
Denominator for basic EPS:
Weighted-average shares outstanding20,511 20,422 20,338 
Effect of dilutive securities:
Stock appreciation rights81 78 39 
Restricted stock units102 124 102 
Performance-based restricted stock units66 65 124 
Diluted potential common shares249 267 265 
Denominator for diluted EPS:
Adjusted weighted-average shares outstanding20,760 20,689 20,603 
Basic EPS$4.19 $3.55 $0.76 
Diluted EPS$4.14 $3.50 $0.75 
v3.22.4
Inventories, net (Tables)
12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Summary of Inventories
Inventories in the Consolidated Balance Sheets are summarized as follows:
 December 31,
(Thousands)20222021
Raw materials and supplies$113,694 $93,518 
Work in process249,105 221,638 
Finished goods60,281 45,959 
Inventories, net423,080 361,115 
v3.22.4
Property, Plant, and Equipment (Tables)
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Summary of Property, Plant and Equipment
Property, plant, and equipment on the Consolidated Balance Sheets is summarized as follows:
 December 31,
(Thousands)20222021
Land$26,579 $26,627 
Buildings200,223 173,907 
Machinery and equipment770,628 687,502 
Software44,886 45,445 
Construction in progress100,188 130,838 
Allowances for depreciation(720,455)(690,166)
Subtotal422,049 374,153 
Finance leases31,662 32,865 
Allowances for depreciation(7,395)(6,193)
Subtotal24,267 26,672 
Mineral resources4,980 4,980 
Mine development30,059 30,059 
Allowances for amortization and depletion(32,590)(26,889)
Subtotal2,449 8,150 
Property, plant, and equipment — net$448,765 $408,975 
v3.22.4
Leasing Arrangements (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Lease, Cost The components of operating and finance lease cost for 2022 and 2021 were as follows:
(Thousands)20222021
Components of lease expense
Operating lease cost$13,381 $11,825 
Finance lease cost
Amortization of right-of-use assets1,202 1,989 
Interest on lease liabilities819 1,009 
Total lease cost$15,402 $14,823 
Schedule of Supplemental Balance Sheet Information Related to Leases
Supplemental balance sheet information related to the Company's operating and finance leases as of December 31, 2022 and 2021 is as follows:

(Thousands, except lease term and discount rate)20222021
Supplemental balance sheet information
Operating Leases
Operating lease right-of-use assets
$64,249 $63,096 
Other liabilities and accrued items8,401 7,906 
Operating lease liabilities59,055 57,099 
Finance Leases
Property, plant, and equipment
$31,662 $32,865 
Allowances for depreciation, depletion, and amortization
(7,395)(6,193)
Finance lease assets, net$24,267 $26,672 
Other liabilities and accrued items$1,485 $2,800 
Finance lease liabilities13,876 16,327 
Total principal payable on finance leases$15,361 $19,127 
Weighted Average Remaining Lease Term
Operating leases
11.7811.47
Finance leases
17.9816.96
Weighted Average Discount Rate
Operating leases
6.08%6.19%
Finance leases
5.11%4.99%
Future estimated minimum payments under capital leases and non-cancelable operating leases
Future maturities of the Company's lease liabilities as of December 31, 2022 are as follows:
FinanceOperating
(Thousands)LeasesLeases
2023$2,216 $12,338 
20241,385 9,642 
20251,230 8,743 
20261,204 7,355 
20271,204 5,913 
2028 and thereafter 16,579 51,574 
Total lease payments23,818 95,565 
Less amount of lease payment representing interest8,457 28,109 
Total present value of lease payments$15,361 $67,456 
Schedule Of Supplemental Cash Flow Information Related To Leases
Supplemental cash flow information related to leases was as follows:
(Thousands)20222021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,653 $17,580 
Operating cash flows from finance leases818 1,009 
Financing cash flows from finance leases2,736 2,819 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases9,967 9,191 
Finance leases — 
v3.22.4
Intangible Assets and Goodwill (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of finite-lived intangible assets
The cost and accumulated amortization of intangible assets subject to amortization as of December 31, 2022 and 2021, is as follows:
 20222021
(Thousands)Gross Carrying AmountAccumulated AmortizationNetGross Carrying AmountAccumulated AmortizationNet
Customer relationships$110,347 $(28,950)$81,397 $111,220 $(22,777)$88,443 
Technology44,886 (10,420)34,466 45,014 (6,917)38,097 
Licenses and other 34,300 (10,562)23,738 34,468 (7,879)26,589 
Total$189,533 $(49,932)$139,601 $190,702 $(37,573)$153,129 
Finite-lived Intangible Assets Amortization Expense
Estimated amortization expense for each of the five succeeding years is as follows:
Amortization
(Thousands)Expense
202312,473 
202412,473 
202511,851 
202610,626 
202710,471 
Schedule of Goodwill
A summary of changes in goodwill by reportable segment is as follows:
(Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsTotal
Balance at December 31, 2020$1,899 $50,527 $92,490 $144,916 
Acquisition23,904 154,277 — 178,181 
Impairment charge— — — — 
Other— (284)(4,193)(4,477)
Balance at December 31, 2021$25,803 $204,520 $88,297 $318,620 
Acquisition— — 
Impairment charge— — — — 
Other354 2,150 (1,626)878 
Balance at December 31, 2022$26,157 206,670 $86,671 $319,498 
v3.22.4
Debt (Tables)
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Summary of long-term debt
Long-term debt in the Consolidated Balance Sheets is summarized as follows:
 December 31,
(Thousands)20222021
Borrowings under Credit Agreement with average interest rate of 6.08% at December 31, 2022 and 2.12% at December 31, 2021
$143,250 $152,296 
Borrowings under the Term Loan Facility285,000 300,000 
Foreign debt7,541 2,252 
Total long-term debt outstanding435,791 454,548 
Current portion of long-term debt(21,105)(15,359)
Gross long-term debt$414,686 $439,189 
Unamortized deferred financing fees(3,810)(4,801)
Long-term debt$410,876 $434,388 
Maturities on long-term debt instruments
Maturities on long-term debt instruments as of December 31, 2022 are as follows:
(Thousands)
202321,105 
202430,337 
202530,337 
2026353,543 
2027204 
2028 and thereafter 265 
Total$435,791 
v3.22.4
Pensions and Other Post-Employment Benefits (Tables)
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Obligation and funded status of the company's pension and other post-retirement benefit plans
The obligation and funded status of the Company’s pension and other post-employment benefit plans are shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan.
  Pension BenefitsOther Benefits
(Thousands)2022202120222021
Change in benefit obligation
Benefit obligation at beginning of year$235,779 $246,107 $7,514 $8,190 
Service cost1,231 1,722 78 80 
Interest cost4,874 4,186 156 116 
Net pension curtailments and settlements(3,104)—  — 
Acquisition —  — 
Plan amendments —  — 
Actuarial (gain) loss(61,819)(8,448)(1,800)(112)
Benefit payments(5,821)(4,927)(443)(742)
Foreign currency exchange rate changes and other(3,108)(2,861) (18)
Benefit obligation at end of year168,032 235,779 5,505 7,514 
Change in plan assets
Fair value of plan assets at beginning of year227,340 226,176  — 
Plan settlements(3,104)—  — 
Acquisition —  — 
Actual return on plan assets(53,283)5,769  — 
Employer contributions831 955  — 
Employee contributions786 878  — 
Benefit payments from fund(6,175)(5,399) — 
Foreign currency exchange rate changes and other(1,799)(1,039) — 
Fair value of plan assets at end of year164,596 227,340  — 
Funded status at end of year$(3,436)$(8,439)$(5,505)$(7,514)
Amounts recognized in the Consolidated
Balance Sheets consist of:
Other assets$11,761 $18,566 $ $— 
Other liabilities and accrued items(536)(1,662)(754)(754)
Retirement and post-employment benefits(14,661)(25,343)(4,751)(6,760)
Net amount recognized$(3,436)$(8,439)$(5,505)$(7,514)
Schedule of amounts recognized in other comprehensive income (loss)
The following amounts are included within accumulated other comprehensive loss at December 31, 2022:
  Pension BenefitsOther Benefits
(Thousands)2022202120222021
Amounts recognized in other comprehensive income (before tax) consist of:
Net actuarial loss (gain)$43,039 $42,440 $(5,573)$(4,044)
Net prior service cost (credit)(617)(695)(556)(2,054)
Net transition obligation/(asset) 637 — — 
Net amount recognized$42,422 $42,382 $(6,129)$(6,098)
Schedule of accumulated and projected benefit obligations
The following table provides information regarding the accumulated benefit obligation:
  Pension BenefitsOther Benefits
(Thousands)2022202120222021
Additional information
Accumulated benefit obligation for all defined benefit pension plans$167,366 $233,717 $ $— 
For defined benefit pension plans with benefit obligations in excess of plan assets:
Aggregate benefit obligation18,490 58,052  — 
Aggregate fair value of plan assets3,279 33,148  — 
For defined benefit pension plans with accumulated benefit obligations in excess of plan assets:
Aggregate accumulated benefit obligation17,833 56,043   
Aggregate fair value of plan assets3,279 33,148   
Schedule of net benefit costs
The following table summarizes components of net benefit cost:
  
Pension BenefitsOther Benefits
(Thousands)202220212020202220212020
Net benefit cost
Service cost$1,231 $1,722 $1,403 $78 $80 $59 
Interest cost4,874 4,186 5,234 156 116 213 
Expected return on plan assets(9,570)(9,881)(9,333) — — 
Amortization of prior service credit(78)(82)— (1,497)(1,497)(1,497)
Recognized net actuarial loss (gain)1,701 2,344 1,678 (272)(275)(332)
Net periodic benefit (credit) cost(1,842)(1,711)(1,018)(1,535)(1,576)(1,557)
Net pension curtailments and settlements(551)— 94  — — 
Total net benefit (credit) cost$(2,393)$(1,711)$(924)$(1,535)$(1,576)$(1,557)
Summary of cumulative net gain (loss) by component, net of tax, within other comprehensive income
The following table summarizes amounts recognized in other comprehensive income (OCI):
  
Pension BenefitsOther Benefits
(Thousands)202220212020202220212020
Change in other comprehensive income
OCI at beginning of year$42,382 $48,673 $48,073 $(6,098)$(7,525)$(9,578)
Increase (decrease) in OCI:
Recognized during year — prior service cost (credit)78 82 — 1,497 1,497 1,497 
Recognized during year — net actuarial (losses) gains(1,701)(2,344)(1,678)272 275 332 
Occurring during year — prior service cost — (799) — — 
Occurring during year — net actuarial losses (gains)1,112 (4,553)3,146 (1,800)(345)224 
Other adjustments551 — (94) — — 
Foreign currency exchange rate changes524 25  — — 
OCI at end of year$42,422 $42,382 $48,673 $(6,129)$(6,098)$(7,525)
Changes in the components of accumulated other comprehensive (loss) income, including amounts reclassified out, for 2022, 2021, and 2020, and the balances in accumulated other comprehensive (loss) income as of December 31, 2022, 2021, and 2020 are as follows:
Gains and Losses
On Cash Flow Hedges
Pension and Post- Employment BenefitsForeign Currency Translation
(Thousands)Foreign CurrencyInterest RatePrecious MetalsCopper TotalTotal
Balance at December 31, 2019$1,324 $— $(452)$25 $897 $(41,346)$(5,013)$(45,462)
Other comprehensive income (loss) before reclassifications(1,268)— (1,675)218 $(2,725)(2,721)9,030 3,584 
Amounts reclassified from accumulated other comprehensive income222 — 2,041 354 2,617 (57)— 2,560 
Other comprehensive income (loss) before tax(1,046)— 366 572 (108)(2,778)9,030 6,144 
Deferred taxes on current period activity(241)— 84 129 (28)(651)— (679)
Other comprehensive income (loss) after tax(805)— 282 443 (80)(2,127)9,030 6,823 
Balance at December 31, 2020$519 $— $(170)$468 $817 $(43,473)$4,017 $(38,639)
Balance at December 31, 2020$519 $— $(170)$468 $817 $(43,473)$4,017 $(38,639)
Other comprehensive income (loss) before reclassifications2,252 — 508 2,444 5,204 4,428 (6,904)2,728 
Amounts reclassified from accumulated other comprehensive income123 — (193)(3,049)(3,119)437 — (2,682)
Other comprehensive income (loss) before tax2,375 — 315 (605)2,085 4,865 (6,904)46 
Deferred taxes on current period activity546 — 73 (137)482 1,094 — 1,576 
Other comprehensive income (loss) after tax1,829 — 242 (468)1,603 3,771 (6,904)(1,530)
Balance at December 31, 2021$2,348 $— $72 $— $2,420 $(39,702)$(2,887)$(40,169)
Balance at December 31, 2021$2,348 $— $72 $— $2,420 $(39,702)$(2,887)$(40,169)
Other comprehensive income (loss) before reclassifications(1,260)8,113 (259)— 6,594 (394)(5,869)331 
Amounts reclassified from accumulated other comprehensive income(176)(250)(126)— (552)386 — (166)
Other comprehensive income (loss) before tax(1,436)7,863 (385)— 6,042 (8)(5,869)165 
Deferred taxes on current period activity(331)1,808 (90)— 1,387 518 — 1,905 
Other comprehensive income (loss) after tax(1,105)6,055 (295)— 4,655 (526)(5,869)(1,740)
Balance at December 31, 2022$1,243 $6,055 $(223)$— $7,075 $(40,228)$(8,756)$(41,909)
Summary of key valuation assumptions
In determining the projected benefit obligation and the net benefit cost, as of a December 31 measurement date, the Company used the following assumptions:
 Pension BenefitsOther Benefits
 202220212020202220212020
Assumptions used to determine benefit obligations at fiscal year end
Discount rate
2.16% - 5.54%
0.22% - 3.02%
0.03% - 2.76%
5.52 %2.90 %2.45 %
Rate of compensation increase
1.75% - 3.00%
1.50% - 3.00%
1.50% - 3.00%
3.50 %3.00 %3.00 %
Assumptions used to determine net cost for the fiscal year
Discount rate
0.22% - 3.02%
0.03% - 2.76%
0.21% - 3.48%
2.90 %2.45 %3.20 %
Expected long-term return on plan assets
1.20% - 5.25%
1.20% - 5.75%
1.80% - 6.00%
N/AN/AN/A
Rate of compensation increase
1.50% - 3.00%
1.50% - 3.00%
1.50% - 3.00%
3.00 %3.00 %3.00 %
Assumed health care trend rates
Assumed health care trend rates at fiscal year end20222021
Health care trend rate assumed for next year6.00%6.00%
Rate that the trend rate gradually declines to (ultimate trend rate)5.00%5.00%
Year that the rate reaches the ultimate trend rate20322028
Summary of fair values of the company's defined benefit pension plan assets The following tables present the fair values of the Company’s defined benefit pension plan assets as of December 31, 2022 and 2021 by asset category. The Company has some investments that are valued using net asset value (NAV) as the practical expedient and have not been classified in the fair value hierarchy. Refer to Note R for definitions of the fair value hierarchy.
 December 31, 2022
(Thousands)TotalLevel 1Level 2Level 3
Cash$1,058 $1,058 $ $ 
Equity securities (a)37,083 37,083   
Fixed-income securities (b)13,314 13,314   
Other types of investments:
Real estate fund (c)3,115 3,115   
Total54,570 54,570   
Investments measured at NAV: (d)
Pooled investment fund (e)103,142 
Multi-strategy hedge funds (f)6,812 
Private equity funds72 
Total assets at fair value$164,596 
 December 31, 2021
(Thousands)TotalLevel 1Level 2Level 3
Cash$4,777 $4,777 $— $— 
Equity securities (a)49,618 49,618 — — 
Fixed-income securities (b)14,344 14,344 — — 
Other types of investments:
Real estate fund (c)3,258 3,258 — — 
Total71,997 71,997 — — 
Investments measured at NAV: (d)
Pooled investment fund (e)147,832 
Multi-strategy hedge funds (f)7,438 
Private equity funds73 
Total assets at fair value$227,340 
(a)Equity securities are primarily comprised of corporate stock and mutual funds directly held by the plans. Equity securities are valued using the closing price reported on the active market on which the individual securities are traded.
(b)Fixed income securities are primarily comprised of governmental and corporate bonds directly held by the plans. Governmental and corporate bonds are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded.
(c)Includes a mutual fund that typically invests at least 80% of its assets in equity and debt securities of companies in the real estate industry or related industries or in companies which own significant real estate assets at the time of investment.
(d)Certain assets that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy.
(e)Pooled investment fund consists of various investment types including equity investments covering a range of geographies and including investment managers that hold long and short positions, property investments, and other multi-strategy funds which combine a range of different credit, equity, and macro-orientated ideas and dynamically allocate funds across asset classes.
(f)Includes a fund that invests in a broad portfolio of hedge funds.
Estimated future benefits payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 Other Benefits
(Thousands)Pension BenefitsGross Benefit
Payment
Net of
Medicare
Part D
Subsidy
20237,565 767 767 
20248,174 679 679 
20258,880 608 608 
20269,773 518 518 
202710,638 478 478 
2028 through 203256,634 1,815 1,815 
v3.22.4
Accumulated Other Comprehensive (Loss) Income (Tables)
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Summary of cumulative net gain (loss) by component, net of tax, within other comprehensive income
The following table summarizes amounts recognized in other comprehensive income (OCI):
  
Pension BenefitsOther Benefits
(Thousands)202220212020202220212020
Change in other comprehensive income
OCI at beginning of year$42,382 $48,673 $48,073 $(6,098)$(7,525)$(9,578)
Increase (decrease) in OCI:
Recognized during year — prior service cost (credit)78 82 — 1,497 1,497 1,497 
Recognized during year — net actuarial (losses) gains(1,701)(2,344)(1,678)272 275 332 
Occurring during year — prior service cost — (799) — — 
Occurring during year — net actuarial losses (gains)1,112 (4,553)3,146 (1,800)(345)224 
Other adjustments551 — (94) — — 
Foreign currency exchange rate changes524 25  — — 
OCI at end of year$42,422 $42,382 $48,673 $(6,129)$(6,098)$(7,525)
Changes in the components of accumulated other comprehensive (loss) income, including amounts reclassified out, for 2022, 2021, and 2020, and the balances in accumulated other comprehensive (loss) income as of December 31, 2022, 2021, and 2020 are as follows:
Gains and Losses
On Cash Flow Hedges
Pension and Post- Employment BenefitsForeign Currency Translation
(Thousands)Foreign CurrencyInterest RatePrecious MetalsCopper TotalTotal
Balance at December 31, 2019$1,324 $— $(452)$25 $897 $(41,346)$(5,013)$(45,462)
Other comprehensive income (loss) before reclassifications(1,268)— (1,675)218 $(2,725)(2,721)9,030 3,584 
Amounts reclassified from accumulated other comprehensive income222 — 2,041 354 2,617 (57)— 2,560 
Other comprehensive income (loss) before tax(1,046)— 366 572 (108)(2,778)9,030 6,144 
Deferred taxes on current period activity(241)— 84 129 (28)(651)— (679)
Other comprehensive income (loss) after tax(805)— 282 443 (80)(2,127)9,030 6,823 
Balance at December 31, 2020$519 $— $(170)$468 $817 $(43,473)$4,017 $(38,639)
Balance at December 31, 2020$519 $— $(170)$468 $817 $(43,473)$4,017 $(38,639)
Other comprehensive income (loss) before reclassifications2,252 — 508 2,444 5,204 4,428 (6,904)2,728 
Amounts reclassified from accumulated other comprehensive income123 — (193)(3,049)(3,119)437 — (2,682)
Other comprehensive income (loss) before tax2,375 — 315 (605)2,085 4,865 (6,904)46 
Deferred taxes on current period activity546 — 73 (137)482 1,094 — 1,576 
Other comprehensive income (loss) after tax1,829 — 242 (468)1,603 3,771 (6,904)(1,530)
Balance at December 31, 2021$2,348 $— $72 $— $2,420 $(39,702)$(2,887)$(40,169)
Balance at December 31, 2021$2,348 $— $72 $— $2,420 $(39,702)$(2,887)$(40,169)
Other comprehensive income (loss) before reclassifications(1,260)8,113 (259)— 6,594 (394)(5,869)331 
Amounts reclassified from accumulated other comprehensive income(176)(250)(126)— (552)386 — (166)
Other comprehensive income (loss) before tax(1,436)7,863 (385)— 6,042 (8)(5,869)165 
Deferred taxes on current period activity(331)1,808 (90)— 1,387 518 — 1,905 
Other comprehensive income (loss) after tax(1,105)6,055 (295)— 4,655 (526)(5,869)(1,740)
Balance at December 31, 2022$1,243 $6,055 $(223)$— $7,075 $(40,228)$(8,756)$(41,909)
v3.22.4
Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
SARs/Stock Options Roll Forward
The following table summarizes the Company's SARs activity during 2022:
(Shares in thousands)Number of
SARs
Weighted-
average
Exercise
Price Per
Share
Aggregate
Intrinsic
Value (thousands)
Weighted-
average
Remaining
Term (Years)
Outstanding at December 31, 2021260 $51.55 
Granted45 80.85 
Exercised(49)42.83 
Cancelled— — 
Outstanding at December 31, 2022256 58.38 $7,448 3.8
Vested and expected to vest as of December 31, 2022256 58.38 7,448 3.8
Exercisable at December 31, 2022160 50.56 5,928 2.8
SARs/Stock Options Nonvested Share Activity A summary of the status and changes of shares subject to SARs and the related average price per share follows:
(Shares in thousands)Number of
SARs
Weighted-
average
Grant
Date
Fair Value
Nonvested as of December 31, 2021100 $17.98 
Granted45 25.87 
Vested(50)17.47 
Cancelled— — 
Nonvested as of December 31, 202295 $21.97 
SARS/Stock Options, Valuation Assumptions
The fair value of the SARs was estimated on the grant date using the Black-Scholes pricing model with the following assumptions:
202220212020
Risk-free interest rate1.56 %0.57 %1.41 %
Dividend yield0.6 %0.7 %0.9 %
Volatility38.5 %37.6 %31.8 %
Expected lives (in years)4.44.64.8
Summary of Restricted Stock Activity
The following table summarizes the stock-settled RSU activity during 2022:
(Shares in thousands)Number of
Shares
Weighted-
average
Grant Date
Fair Value
Outstanding at December 31, 2021162 $59.23 
Granted61 80.96 
Vested(49)58.29 
Forfeited(9)64.91 
Outstanding at December 31, 2022165 $67.31 
Schedule of Share-based Compensation, Performance Based Restricted Stock Unit Activity
The following table summarizes the activity related to performance-based RSUs during 2022:
(Shares in thousands)Number of
Shares
Weighted-
average
Grant Date
Fair Value
Outstanding at December 31, 2021119 $70.77 
Granted38 95.44 
Vested(43)69.84 
Forfeited(3)79.01 
Outstanding at December 31, 2022111 $79.31 
v3.22.4
Fair Value Information and Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of fair value information and derivative financial instruments
The following table summarizes the financial instruments measured at fair value on the Consolidated Balance Sheets at December 31, 2022 and 2021:
  Fair Value Measurements
(Thousands)TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Other
Significant
Unobservable
Inputs
(Level 3)
December 31, 2022
Financial Assets
Deferred compensation investments$3,001 $3,001 $ $ 
Foreign currency forward contracts1,291  1,291  
Interest rate swap7,863 7,863 
Precious metal swaps118  118  
Total$12,273 $3,001 $9,272 $ 
Financial Liabilities
Deferred compensation liability$3,001 $3,001 $ $ 
Foreign currency forward contracts1,757  1,757  
Interest rate swap  
Precious metal swaps411  411  
Total$5,169 $3,001 $2,168 $ 
December 31, 2021
Financial Assets
Deferred compensation investments$4,246 $4,246 $— $— 
Foreign currency forward contracts3,368 — 3,368 — 
Precious metal swaps116 — 116 — 
Total$7,730 $4,246 $3,484 $— 
Financial Liabilities
Deferred compensation liability$4,246 $4,246 $— $— 
Foreign currency forward contracts136 — 136 — 
Precious metal swaps24 — 24 — 
Total$4,406 $4,246 $160 $— 
Derivatives Not Designated as Hedging Instruments
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 December 31, 2022 and 2021:
 December 31, 2022December 31, 2021
(Thousands)Notional
Amount
Fair
Value
Notional
Amount
Fair
Value
Foreign currency forward contracts
Prepaid expenses$12,242 $791 $55,063 $2,132 
Other liabilities and accrued items17,061 1,048 9,425 128 
Summary of the notional amount and the fair value of the Company's outstanding derivatives
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 at December 31, 2022 and 2021:
 December 31, 2022
Fair Value
(Thousands)Notional
Amount
Prepaid and other current assetsOther assetsOther liabilities and accrued itemsOther long-term liabilities
Foreign currency forward contracts - yen$2,985 $145 $ $74 $26 
Foreign currency forward contracts - euro25,712 355  472 137 
Precious metal swaps8,758 118  411  
Interest rate swap100,000 3,114 4,749   
Total$137,455 $3,732 $4,749 $957 $163 
December 31, 2021
Fair Value
Notional
Amount
Prepaid and other current assetsOther assetsOther liabilities and accrued itemsOther long-term liabilities
Foreign currency forward contracts - yen$3,907 $131 $$— $— 
Foreign currency forward contracts - euro28,412 1,102 — — 
Precious metal swaps6,256 116 — 24 
Total$38,575 $1,349 $$24 $
Derivative Instruments, Gain (Loss)
The following table summarizes the pre-tax 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 for years ended December 31, 2022 and 2021: 
(Thousands)20222021
Hedging relationshipLine item
Foreign currency forward contractsNet sales$(176)$123 
Precious metal swapsCost of sales(126)(193)
Interest rate swapInterest expense - net(250)— 
Copper swapsCost of sales (3,049)
Total$(552)$(3,119)
v3.22.4
Contingencies and Commitments (Tables)
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Undiscounted reserve
The undiscounted reserve balance at the beginning of the year, the amounts expensed and paid, and the balance at December 31, 2022 and 2021 are as follows:
(Thousands)20222021
Reserve balance at beginning of year$4,770 $5,476 
Expensed180 185 
Paid(480)(891)
Reserve balance at end of year$4,470 $4,770 
Ending balance recorded in:
Other liabilities and accrued items$440 $539 
Other long-term liabilities4,030 4,231 
Schedule of asset retirement obligations
Asset Retirement Obligations
The Company has asset retirement obligations related to its mine in Utah, as well as for certain leased facilities where the Company is contractually obligated to restore the facility back to its original condition at the end of the lease. The following represents a roll forward of the Company's asset retirement obligation liabilities for the years ended December 31, 2022 and 2021:
(Thousands)20222021
Asset retirement obligation at beginning of period$2,231 $1,765 
Accretion expense198 134 
Change in liability— 332 
Asset retirement obligation at end of period$2,429 $2,231 
v3.22.4
Significant Accounting Policies - Organization (Details)
12 Months Ended
Dec. 31, 2022
segment
Accounting Policies [Abstract]  
Number of reportable segments 4
v3.22.4
Significant Accounting Policies - Accounts Receivable (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Accounts receivable, allowance for credit loss, current $ 0.6 $ 0.5
v3.22.4
Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Inventory reserve $ 0.4 $ 0.3
v3.22.4
Significant Accounting Policies - Property Plant Equipment (Details)
12 Months Ended
Dec. 31, 2022
Minimum | Land improvements  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 10 years
Minimum | Buildings  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 20 years
Minimum | Machinery and equipment  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 3 years
Minimum | Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 4 years
Minimum | Automobiles and trucks  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 3 years
Minimum | Research equipment  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 3 years
Minimum | Computer hardware  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 3 years
Minimum | Computer software  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 3 years
Maximum | Land improvements  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 20 years
Maximum | Buildings  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 40 years
Maximum | Machinery and equipment  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 15 years
Maximum | Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 10 years
Maximum | Automobiles and trucks  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 8 years
Maximum | Research equipment  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 10 years
Maximum | Computer hardware  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 10 years
Maximum | Computer software  
Property, Plant and Equipment [Line Items]  
Useful life of class of asset 10 years
v3.22.4
Significant Accounting Policies - Mineral Resources and Mine Development (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
Accounting Policies [Abstract]  
Cost of mine development $ 12.9
v3.22.4
Significant Accounting Policies - Unearned Income (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Deferred income $ 85.9 $ 72.6
v3.22.4
Significant Accounting Policies - Advertising (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Advertising expense $ 0.3 $ 0.3 $ 0.3
v3.22.4
Acquisition - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended 14 Months Ended
Nov. 01, 2021
Oct. 31, 2021
Jul. 01, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2022
Business Acquisition [Line Items]              
Goodwill       $ 319,498 $ 318,620 $ 144,916 $ 319,498
Amortization of intangible assets       12,400 5,973 2,377  
HCS- Electronic Materials              
Business Acquisition [Line Items]              
Business combination, consideration transferred $ 398,900       398,900    
Inventory step up             0
Debt instrument, face amount 300,000 $ 300,000   $ 300,000     300,000
Debt instrument, term   5 years   5 years      
Amount outstanding       $ 103,000     103,000
Working capital true-up     $ 3,000        
Goodwill $ 178,181     181,325 $ 181,300   $ 181,325
HCS- Electronic Materials | Selling, General and Administrative Expenses              
Business Acquisition [Line Items]              
Business combination, integration related costs       4,200      
HCS- Electronic Materials | Cost of sales              
Business Acquisition [Line Items]              
Inventory step up       $ 7,500      
HCS- Electronic Materials | Business Acquisition, Pro Forma Net Income (Loss)              
Business Acquisition [Line Items]              
Amortization of inventory step-up           15,000  
Interest expense           10,000  
Amortization of intangible assets           8,200  
Transaction expenses           $ 5,500  
v3.22.4
Acquisition - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($)
$ in Thousands
14 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Nov. 01, 2021
Dec. 31, 2020
Assets:        
Operating lease, right-of-use assets $ 64,249 $ 63,096    
Goodwill 319,498 318,620   $ 144,916
HCS- Electronic Materials        
Assets:        
Cash and cash equivalents 3,685   $ 3,685  
Cash and cash equivalents, Measurement Period Adjustments 0      
Accounts receivable 28,387   28,352  
Accounts receivable, Measurement Period Adjustments 35      
Inventories 70,681   70,681  
Inventories, Measurement Period Adjustments 0      
Prepaid and other current assets 210   660  
Prepaid and other current assets, Measurement Period Adjustments (450)      
Property, plant, and equipment 45,036   44,681  
Property, plant, and equipment, Measurement Period Adjustments 355      
Operating lease, right-of-use assets 6,120   6,120  
Operating lease, right-of-use assets, Measurement Period Adjustments 0      
Intangible assets 107,800   107,800  
Intangible assets, Measurement Period Adjustments 0      
Other long-term assets 4,528   4,528  
Other long-term assets, Measurement Period Adjustments 0      
Goodwill 181,325 $ 181,300 178,181  
Goodwill, Measurement Period Adjustments 3,144      
Total assets acquired 447,772   444,688  
Total assets acquired, Measurement Period Adjustments 3,084      
Liabilities:        
Accounts payable 11,899   12,139  
Accounts payable, Measurement Period Adjustments (240)      
Salaries and wages 3,141   2,516  
Salaries and wages, Measurement Period Adjustments 625      
Other liabilities and accrued items 28   28  
Other liabilities and accrued items, Measurement Period Adjustments 0      
Income taxes 1,726   2,183  
Income taxes, Measurement Period Adjustments (457)      
Other long-term liabilities 5,758   5,543  
Other long-term liabilities, Measurement Period Adjustments 215      
Operating lease liabilities 6,042   6,042  
Operating lease liabilities, Measurement Period Adjustments 0      
Deferred income taxes 20,270   20,300  
Deferred income taxes, Measurement Period Adjustments (30)      
Total liabilities assumed 48,864   48,751  
Total liabilities assumed, Measurement Period Adjustments 113      
Net assets acquired 398,908   $ 395,937  
Net assets acquired, Measurement Period Adjustments $ 2,971      
v3.22.4
Acquisition - Finite-Lived and Indefinite-Lived Intangibles Assets Acquired as Part of Business Combinations (Details) - HCS- Electronic Materials - USD ($)
$ in Thousands
Nov. 01, 2021
Dec. 31, 2022
Acquired Indefinite-lived Intangible Assets [Line Items]    
Intangible assets $ 107,800 $ 107,800
Customer relationships    
Acquired Indefinite-lived Intangible Assets [Line Items]    
Intangible assets $ 50,200  
Acquired finite-lived intangible assets, weighted average useful life (in years) 13 years  
Technology    
Acquired Indefinite-lived Intangible Assets [Line Items]    
Intangible assets $ 35,300  
Acquired finite-lived intangible assets, weighted average useful life (in years) 13 years  
Trade name    
Acquired Indefinite-lived Intangible Assets [Line Items]    
Intangible assets $ 22,300  
Acquired finite-lived intangible assets, weighted average useful life (in years) 15 years  
v3.22.4
Acquisition - Pro Forma Information (Details) - HCS- Electronic Materials - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Combination, Separately Recognized Transactions [Line Items]    
Net Sales $ 1,659,620 $ 1,308,300
Profit income (loss) before taxes $ 91,551 $ (17,761)
v3.22.4
Segment Reporting and Geographic Information - Reportable Segments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Net sales $ 1,757,109 $ 1,510,644 $ 1,176,274
Total Segment EBITDA 178,441 126,363  
Income tax expense 17,110 4,851 (7,187)
Interest expense - net 21,905 4,901 3,879
Depreciation, depletion, and amortization 53,436 44,137 42,384
Net income 85,990 72,474 $ 15,462
Performance Materials      
Segment Reporting Information [Line Items]      
Net sales 671,525 511,874  
Total Segment EBITDA 125,227 89,028  
Performance Materials | Intersegment Eliminations      
Segment Reporting Information [Line Items]      
Net sales 700 200  
Electronic Materials      
Segment Reporting Information [Line Items]      
Net sales 971,902 866,816  
Total Segment EBITDA 67,806 44,852  
Electronic Materials | Intersegment Eliminations      
Segment Reporting Information [Line Items]      
Net sales 14,000 13,900  
Precision Optics      
Segment Reporting Information [Line Items]      
Net sales 113,682 131,954  
Total Segment EBITDA 13,753 25,854  
Other      
Segment Reporting Information [Line Items]      
Net sales 0 0  
Total Segment EBITDA $ (28,345) $ (33,371)  
v3.22.4
Segment Reporting and Geographic Information - Sales and Long-Lived Assets Attributed to Countries Based Upon the Location of Customers (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Sales and long-lived assets attributed to countries based upon the location of customers      
Net sales $ 1,757,109 $ 1,510,644 $ 1,176,274
Property, plant, and equipment, net by country deployed 448,765 408,975 309,686
United States      
Sales and long-lived assets attributed to countries based upon the location of customers      
Net sales 867,053 794,862 641,727
Property, plant, and equipment, net by country deployed 372,779 327,969 223,340
Asia      
Sales and long-lived assets attributed to countries based upon the location of customers      
Net sales 519,395 426,303 329,968
Europe      
Sales and long-lived assets attributed to countries based upon the location of customers      
Net sales 355,691 270,213 189,281
All other      
Sales and long-lived assets attributed to countries based upon the location of customers      
Net sales 14,970 19,266 15,298
Property, plant, and equipment, net by country deployed $ 75,986 $ 81,006 $ 86,346
v3.22.4
Segment Reporting and Geographic Information - Disaggregation of Revenue by Segment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Net sales $ 1,757,109 $ 1,510,644 $ 1,176,274
Semiconductor      
Disaggregation of Revenue [Line Items]      
Net sales 798,290 694,138  
Industrial      
Disaggregation of Revenue [Line Items]      
Net sales 247,367 201,141  
Aerospace and Defense      
Disaggregation of Revenue [Line Items]      
Net sales 133,754 115,177  
Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Net sales 73,669 75,363  
Automotive      
Disaggregation of Revenue [Line Items]      
Net sales 111,093 121,143  
Energy      
Disaggregation of Revenue [Line Items]      
Net sales 148,865 123,243  
Telecom and Data Center      
Disaggregation of Revenue [Line Items]      
Net sales 65,379 53,683  
Other      
Disaggregation of Revenue [Line Items]      
Net sales 178,692 126,756  
Performance Materials      
Disaggregation of Revenue [Line Items]      
Net sales 671,525 511,874  
Performance Materials | Semiconductor      
Disaggregation of Revenue [Line Items]      
Net sales 8,666 8,481  
Performance Materials | Industrial      
Disaggregation of Revenue [Line Items]      
Net sales 168,012 123,337  
Performance Materials | Aerospace and Defense      
Disaggregation of Revenue [Line Items]      
Net sales 110,884 86,046  
Performance Materials | Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Net sales 49,859 41,694  
Performance Materials | Automotive      
Disaggregation of Revenue [Line Items]      
Net sales 93,581 105,466  
Performance Materials | Energy      
Disaggregation of Revenue [Line Items]      
Net sales 50,021 23,913  
Performance Materials | Telecom and Data Center      
Disaggregation of Revenue [Line Items]      
Net sales 65,230 53,510  
Performance Materials | Other      
Disaggregation of Revenue [Line Items]      
Net sales 125,272 69,427  
Electronic Materials      
Disaggregation of Revenue [Line Items]      
Net sales 971,902 866,816  
Electronic Materials | Semiconductor      
Disaggregation of Revenue [Line Items]      
Net sales 784,517 683,085  
Electronic Materials | Industrial      
Disaggregation of Revenue [Line Items]      
Net sales 47,407 45,025  
Electronic Materials | Aerospace and Defense      
Disaggregation of Revenue [Line Items]      
Net sales 5,882 5,509  
Electronic Materials | Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Net sales 1,144 1,184  
Electronic Materials | Automotive      
Disaggregation of Revenue [Line Items]      
Net sales 7,590 7,321  
Electronic Materials | Energy      
Disaggregation of Revenue [Line Items]      
Net sales 98,844 99,330  
Electronic Materials | Telecom and Data Center      
Disaggregation of Revenue [Line Items]      
Net sales 149 173  
Electronic Materials | Other      
Disaggregation of Revenue [Line Items]      
Net sales 26,369 25,189  
Precision Optics      
Disaggregation of Revenue [Line Items]      
Net sales 113,682 131,954  
Precision Optics | Semiconductor      
Disaggregation of Revenue [Line Items]      
Net sales 5,107 2,572  
Precision Optics | Industrial      
Disaggregation of Revenue [Line Items]      
Net sales 31,948 32,779  
Precision Optics | Aerospace and Defense      
Disaggregation of Revenue [Line Items]      
Net sales 16,988 23,622  
Precision Optics | Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Net sales 22,666 32,485  
Precision Optics | Automotive      
Disaggregation of Revenue [Line Items]      
Net sales 9,922 8,356  
Precision Optics | Energy      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Precision Optics | Telecom and Data Center      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Precision Optics | Other      
Disaggregation of Revenue [Line Items]      
Net sales 27,051 32,140  
Other      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Semiconductor      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Industrial      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Aerospace and Defense      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Automotive      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Energy      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Telecom and Data Center      
Disaggregation of Revenue [Line Items]      
Net sales 0 0  
Other | Other      
Disaggregation of Revenue [Line Items]      
Net sales $ 0 $ 0  
v3.22.4
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Remaining performance obligation $ 63.9  
Contract with customer, liability, revenue recognized $ 7.1 $ 6.8
v3.22.4
Revenue Recognition - Contract with Customer (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Accounts receivable, trade    
Capitalized Contract Cost [Line Items]    
Contract with customer, asset $ 215,726 $ 213,584
Change in accounts receivable, trade $ 2,142  
Contract asset percent change 1.00%  
Unbilled receivables    
Capitalized Contract Cost [Line Items]    
Contract with customer, asset $ 10,765 7,961
Change in unbilled receivables $ 2,804  
Contract asset percent change 35.00%  
Unearned revenue    
Capitalized Contract Cost [Line Items]    
Unearned revenue $ 15,496 $ 7,770
Change in unearned revenue $ 7,726  
Contract liability percent change 99.00%  
v3.22.4
Other-net - Summary of Other-net Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Summary of other-net expense      
Metal consignment fees $ 12,212 $ 9,305 $ 8,587
Amortization of intangible assets 12,400 5,973 2,377
Foreign currency loss (gain) (679) 1,573 (2,569)
Net (gain) loss on disposal of fixed assets 14 (282) 466
Other items 290 168 (398)
Total other-net $ 24,237 $ 16,737 $ 8,463
v3.22.4
Interest Expense-net - Summary of Interest Incurred, Capitalized and Paid (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Summary of interest incurred, capitalized and paid      
Interest incurred, net $ 23,014 $ 5,277 $ 3,889
Less: Capitalized interest 1,109 376 10
Total net expense 21,905 4,901 3,879
Interest paid $ 21,190 $ 3,652 $ 3,442
v3.22.4
Interest Expense-net - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest [Abstract]      
Amortization of deferred financing costs $ 1,734 $ 967 $ 790
v3.22.4
Income Taxes - Income Tax Expenses Benefit (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income (loss) before income taxes:      
Domestic $ 90,403 $ 54,684 $ (1,153)
Foreign 12,697 22,641 9,428
Income before income taxes 103,100 77,325 8,275
Current income tax expense (benefit):      
Domestic 12,571 14,603 812
Foreign 2,806 3,205 1,851
Total current 15,377 17,808 2,663
Deferred income tax (benefit) expense:      
Domestic 588 (7,953) (5,641)
Foreign 1,145 (5,004) (4,209)
Total deferred 1,733 (12,957) (9,850)
Total income tax expense (benefit) $ 17,110 $ 4,851 $ (7,187)
v3.22.4
Income Taxes - Effective Income Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of the federal statutory and effective income tax rate      
U.S. federal statutory rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal tax effect 1.70% (0.30%) (10.00%)
Effect of excess of percentage depletion over cost depletion (3.10%) (3.40%) (43.00%)
Foreign derived intangible income deduction (1.70%) (2.30%) (1.80%)
Non-deductible goodwill impairment 0.00% 0.00% 7.10%
Research and development tax credit (2.00%) (1.20%) (16.40%)
Impact of foreign operations 0.60% 0.30% (5.30%)
Non-deductible transaction costs 0.00% 1.60% 6.90%
Interest from tax authorities 0.00% 0.00% (3.80%)
Adjustment to unrecognized tax benefits (0.50%) (1.90%) 1.80%
Equity compensation (0.90%) (0.50%) (5.30%)
Non-deductible officers' compensation 1.20% 1.40% 6.80%
Valuation allowance 0.60% (8.50%) (45.50%)
Other items (0.30%) 0.10% 0.60%
Effective tax rate 16.60% 6.30% (86.90%)
v3.22.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Asset (liability)    
Post-employment benefits other than pensions $ 1,230 $ 1,714
Other reserves 1,831 1,901
Deferred compensation 3,850 3,263
Environmental reserves 1,321 1,358
Inventory 6,118 0
Research expenditures 7,069 0
Revenue recognition 7,878 5,027
Lease liabilities 12,651 11,639
Interest expense carryforward 12,470 14,163
Pensions 0 1,393
Accrued compensation expense 5,477 6,410
Net operating loss and credit carryforwards 9,915 11,423
Subtotal 69,810 58,291
Valuation allowance (4,935) (4,957)
Total deferred tax assets 64,875 53,334
Depreciation (42,481) (24,484)
Lease assets (12,078) (11,184)
Inventory 0 (2,329)
Amortization (32,925) (35,542)
Mine development 0 (917)
Pensions (400) 0
Unrealized gains (1,940) (663)
Total deferred tax liabilities (89,824) (75,119)
Net deferred tax liabilities $ (24,949) $ (21,785)
v3.22.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]      
Income tax expense (benefit) $ (17,110) $ (4,851) $ 7,187
Operating loss carryforwards, valuation allowance 4,900    
Income tax holiday, aggregate dollar amount 3,000    
Unrecognized tax benefits that would impact effective tax rate if recognized 700 1,200  
Income taxes paid 14,500 $ 21,800 $ 3,900
Unrepatriated earnings 105,400    
Capital Loss Carryforward      
Operating Loss Carryforwards [Line Items]      
Tax credit, amount subject to expiration 7,400    
Foreign Tax Authority      
Operating Loss Carryforwards [Line Items]      
Foreign net operating loss carryforwards, do not expire 21,200    
Foreign net operating loss carryforwards subject to expiration 3,200    
State and Local Jurisdiction      
Operating Loss Carryforwards [Line Items]      
Foreign net operating loss carryforwards subject to expiration 16,300    
Tax credit, amount subject to expiration $ 4,100    
v3.22.4
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of unrecognized tax benefits    
Balance at January 1 $ 1,142 $ 2,360
Additions to tax provisions related to the current year 0 431
Additions to tax positions related to prior years 0 0
Reduction to tax positions related to prior years (8) (45)
Lapses on statutes of limitations (482) (1,604)
Balance at December 31 $ 652 $ 1,142
v3.22.4
Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator for basic and diluted EPS:      
Net income $ 85,990 $ 72,474 $ 15,462
Denominator for basic EPS:      
Weighted-average shares outstanding (in shares) 20,511 20,422 20,338
Effect of dilutive securities:      
Diluted potential common shares (in shares) 249 267 265
Denominator for diluted EPS:      
Adjusted weighted-average shares outstanding (in shares) 20,760 20,689 20,603
Basic EPS (in usd per share) $ 4.19 $ 3.55 $ 0.76
Diluted EPS (in usd per share) $ 4.14 $ 3.50 $ 0.75
Stock appreciation rights      
Effect of dilutive securities:      
Dilutive effect of share-based compensation (in shares) 81 78 39
Restricted stock units      
Effect of dilutive securities:      
Dilutive effect of share-based compensation (in shares) 102 124 102
Performance-based restricted stock units      
Effect of dilutive securities:      
Dilutive effect of share-based compensation (in shares) 66 65 124
v3.22.4
Earnings Per Share - Additional Information (Details) - shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stock appreciation rights      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Equity awards excluded from diluted EPS calculation (in shares) 56,636 55,598 166,255
v3.22.4
Inventories, net - Summary of Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 113,694 $ 93,518
Work in process 249,105 221,638
Finished goods 60,281 45,959
Inventories, net $ 423,080 $ 361,115
v3.22.4
Inventories, net - Additional Details (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Notional amount of nonderivative instruments $ 373.1 $ 480.2
Inventory excess and obsolete reserve $ 19.8 $ 23.9
v3.22.4
Property, Plant, and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Summary of Property, plant and equipment      
Property, plant, and equipment — net $ 448,765 $ 408,975 $ 309,686
Land      
Summary of Property, plant and equipment      
Property, plant, and equipment 26,579 26,627  
Buildings      
Summary of Property, plant and equipment      
Property, plant, and equipment 200,223 173,907  
Machinery and equipment      
Summary of Property, plant and equipment      
Property, plant, and equipment 770,628 687,502  
Software      
Summary of Property, plant and equipment      
Property, plant, and equipment 44,886 45,445  
Construction in progress      
Summary of Property, plant and equipment      
Property, plant, and equipment 100,188 130,838  
Land Building Machinery and Equipment      
Summary of Property, plant and equipment      
Less allowances for depreciation, depletion, and amortization (720,455) (690,166)  
Property, plant, and equipment — net 422,049 374,153  
Capital leases      
Summary of Property, plant and equipment      
Property, plant, and equipment 31,662 32,865  
Less allowances for depreciation, depletion, and amortization (7,395) (6,193)  
Property, plant, and equipment — net 24,267 26,672  
Mineral resources      
Summary of Property, plant and equipment      
Property, plant, and equipment 4,980 4,980  
Mine development      
Summary of Property, plant and equipment      
Property, plant, and equipment 30,059 30,059  
Productive land      
Summary of Property, plant and equipment      
Less allowances for depreciation, depletion, and amortization (32,590) (26,889)  
Property, plant, and equipment — net $ 2,449 $ 8,150  
v3.22.4
Property, Plant, and Equipment - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Reimbursement of costs $ 63.5    
Unearned income 15.3 $ 19.7  
Depreciation and depletion expense 35.2 31.4 $ 30.9
Net book value of capitalized software 4.6 5.4  
Software amortization 1.8 1.8 1.8
Capital expenditures incurred but not yet paid 12.1 2.1  
Cost of sales      
Property, Plant and Equipment [Line Items]      
Unearned income $ (4.4) $ (4.3) $ (4.3)
v3.22.4
Customer Prepayments - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Revenue Recognition and Deferred Revenue [Abstract]    
Prepayments from customers $ 21.9  
Deferred income 85.9 $ 72.6
Unearned revenue $ 4.5  
v3.22.4
Leasing Arrangements - Additional Information (Details)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Operating lease term maximum 25 years
v3.22.4
Leasing Arrangements - Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating lease cost $ 13,381 $ 11,825
FinanceLeaseAbstract [Abstract]    
Amortization of right-of-use assets 1,202 1,989
Interest on lease liabilities 819 1,009
Total lease cost $ 15,402 $ 14,823
v3.22.4
Leasing Arrangements - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Operating Leases    
Operating lease, right-of-use assets $ 64,249 $ 63,096
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Other liabilities and accrued items $ 8,401 $ 7,906
Operating lease liabilities $ 59,055 $ 57,099
Finance Leases    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization
Property, plant, and equipment $ 31,662 $ 32,865
Allowances for depreciation, depletion, and amortization (7,395) (6,193)
Finance lease assets, net $ 24,267 $ 26,672
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Other liabilities and accrued items $ 1,485 $ 2,800
Finance lease liabilities 13,876 16,327
Total principal payable on finance leases $ 15,361 $ 19,127
Weighted Average Remaining Lease Term    
Operating leases (in years) 11 years 9 months 10 days 11 years 5 months 19 days
Finance leases (in years) 17 years 11 months 23 days 16 years 11 months 15 days
Weighted Average Discount Rate    
Operating leases 6.08% 6.19%
Finance leases 5.11% 4.99%
v3.22.4
Leasing Arrangements - Future Estimated Minimum Payments Under Finance Leases and Non-Cancelable Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Finance Leases    
2023 $ 2,216  
2024 1,385  
2025 1,230  
2026 1,204  
2027 1,204  
2028 and thereafter 16,579  
Total lease payments 23,818  
Less amount of lease payment representing interest 8,457  
Total present value of lease payments 15,361 $ 19,127
Operating Leases    
2023 12,338  
2024 9,642  
2025 8,743  
2026 7,355  
2027 5,913  
2028 and thereafter 51,574  
Total lease payments 95,565  
Less amount of lease payment representing interest 28,109  
Total present value of lease payments $ 67,456  
v3.22.4
Leasing Arrangements - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 19,653 $ 17,580  
Operating cash flows from finance leases 818 1,009  
Financing cash flows from finance leases 2,736 2,819 $ 2,213
Right-of-use assets obtained in exchange for lease obligations:      
Operating leases 9,967 9,191  
Finance leases $ 0 $ 0  
v3.22.4
Intangible Assets and Goodwill - Summary of Cost, Accumulated Amortization and Net Book Value of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Summary of cost, accumulated amortization and net book value of intangible assets    
Gross Carrying Amount $ 189,533 $ 190,702
Accumulated Amortization (49,932) (37,573)
Finite-Lived Intangible Assets, Net 143,219 156,736
Customer relationships    
Summary of cost, accumulated amortization and net book value of intangible assets    
Gross Carrying Amount 110,347 111,220
Accumulated Amortization (28,950) (22,777)
Finite-Lived Intangible Assets, Net 81,397 88,443
Technology    
Summary of cost, accumulated amortization and net book value of intangible assets    
Gross Carrying Amount 44,886 45,014
Accumulated Amortization (10,420) (6,917)
Finite-Lived Intangible Assets, Net 34,466 38,097
Licenses and other    
Summary of cost, accumulated amortization and net book value of intangible assets    
Gross Carrying Amount 34,300 34,468
Accumulated Amortization (10,562) (7,879)
Finite-Lived Intangible Assets, Net 23,738 26,589
Finite-Lived Intangible Assets    
Summary of cost, accumulated amortization and net book value of intangible assets    
Finite-Lived Intangible Assets, Net $ 139,601 $ 153,129
v3.22.4
Intangible Assets and Goodwill - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 01, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Line Items]        
Amortization of intangible assets   $ 12,400 $ 5,973 $ 2,377
Goodwill   319,498 318,620 144,916
Goodwill impairment charges   0 0 9,053
Discontinued Operations, Disposed of by Means Other than Sale | LAC Restructuring        
Goodwill [Line Items]        
Intangible assets       26,200
HCS- Electronic Materials        
Goodwill [Line Items]        
Intangible assets $ 107,800 107,800    
Business combination, consideration transferred 398,900   398,900  
Goodwill 178,181 181,325 181,300  
Electronic Materials        
Goodwill [Line Items]        
Goodwill   206,670 204,520 50,527
Goodwill impairment charges   0 0  
Electronic Materials | HCS- Electronic Materials        
Goodwill [Line Items]        
Goodwill     157,000  
Performance Materials        
Goodwill [Line Items]        
Goodwill   26,157 25,803 1,899
Goodwill impairment charges   0 0  
Performance Materials | HCS- Electronic Materials        
Goodwill [Line Items]        
Goodwill     24,300  
LAC Restructuring        
Goodwill [Line Items]        
Goodwill impairment charges   20,600 20,600 $ 20,600
Customer relationships | HCS- Electronic Materials        
Goodwill [Line Items]        
Intangible assets $ 50,200      
Acquired finite-lived intangible assets, weighted average useful life (in years) 13 years      
Technology | HCS- Electronic Materials        
Goodwill [Line Items]        
Intangible assets $ 35,300      
Acquired finite-lived intangible assets, weighted average useful life (in years) 13 years      
Trade name | HCS- Electronic Materials        
Goodwill [Line Items]        
Intangible assets $ 22,300      
Acquired finite-lived intangible assets, weighted average useful life (in years) 15 years      
Deferred Financing Costs        
Goodwill [Line Items]        
Deferred finance cost   $ 3,600 $ 3,600  
v3.22.4
Intangible Assets and Goodwill - Finite-lived Intangible Assets Amortization Expense (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2023 $ 12,473
2024 12,473
2025 11,851
2026 10,626
2027 $ 10,471
v3.22.4
Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]      
Goodwill, beginning balance $ 318,620 $ 144,916  
Goodwill, acquired during period 0 178,181  
Goodwill impairment charges 0 0 $ (9,053)
Goodwill, other increase (decrease) 878 (4,477)  
Goodwill, ending balance 319,498 318,620 144,916
Performance Materials      
Goodwill [Roll Forward]      
Goodwill, beginning balance 25,803 1,899  
Goodwill, acquired during period 23,904  
Goodwill impairment charges 0 0  
Goodwill, other increase (decrease) 354 0  
Goodwill, ending balance 26,157 25,803 1,899
Electronic Materials      
Goodwill [Roll Forward]      
Goodwill, beginning balance 204,520 50,527  
Goodwill, acquired during period 154,277  
Goodwill impairment charges 0 0  
Goodwill, other increase (decrease) 2,150 (284)  
Goodwill, ending balance 206,670 204,520 50,527
Precision Optics      
Goodwill [Roll Forward]      
Goodwill, beginning balance 88,297 92,490  
Goodwill, acquired during period 0 0  
Goodwill impairment charges 0 0  
Goodwill, other increase (decrease) (1,626) (4,193)  
Goodwill, ending balance $ 86,671 $ 88,297 $ 92,490
v3.22.4
Debt - Summary of Long-Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Summary of long-term debt    
Line of credit facility, interest rate at period end 6.08% 2.12%
Borrowings under Credit Agreement with average interest rate of 6.08% at December 31, 2022 and 2.12% at December 31, 2021 $ 143,250 $ 152,296
Borrowings under the Term Loan Facility 285,000 300,000
Foreign debt 7,541 2,252
Total long-term debt outstanding 435,791 454,548
Current portion of long-term debt (21,105) (15,359)
Gross long-term debt 414,686 439,189
Unamortized deferred financing fees (3,810) (4,801)
Long-term debt $ 410,876 $ 434,388
v3.22.4
Debt - Maturities on Long-Term Debt Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Maturities on long-term debt instruments    
2023 $ 21,105  
2024 30,337  
2025 30,337  
2026 353,543  
2027 204  
2028 and thereafter 265  
Total long-term debt outstanding $ 435,791 $ 454,548
v3.22.4
Debt - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Jan. 31, 2023
Dec. 31, 2021
Nov. 01, 2021
Oct. 31, 2021
Line of Credit Facility [Line Items]          
Cash on hand $ 25,000        
Total long-term debt outstanding 435,791   $ 454,548    
HCS- Electronic Materials          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity 375,000        
Debt instrument, face amount 300,000     $ 300,000 $ 300,000
Precious Metals          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity 600,000        
Precious Metals | Subsequent Event          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity   $ 615,000      
Additional term loan          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity 150,000        
Letter of Credit          
Line of Credit Facility [Line Items]          
Letters of credit outstanding, amount $ 46,500   46,300    
Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Variable commitment fee 0.28%        
Credit Agreement          
Line of Credit Facility [Line Items]          
Total long-term debt outstanding $ 428,300   $ 452,300    
Short-term Debt          
Line of Credit Facility [Line Items]          
Line of credit facility, remaining borrowing capacity $ 185,300        
v3.22.4
Pensions and Other Post-Employment Benefits - Reconciliation of the Benefit Obligations and Plan Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Change in plan assets      
Fair value of plan assets at beginning of year $ 227,340    
Fair value of plan assets at end of year 164,596 $ 227,340  
Pension Benefits      
Change in benefit obligation      
Benefit obligation at beginning of year 235,779 246,107  
Service cost 1,231 1,722 $ 1,403
Interest cost 4,874 4,186 5,234
Net pension curtailments and settlements (3,104) 0  
Acquisition 0 0  
Plan amendments 0 0  
Actuarial (gain) loss (61,819) (8,448)  
Benefit payments (5,821) (4,927)  
Foreign currency exchange rate changes and other (3,108) (2,861)  
Benefit obligation at end of year 168,032 235,779 246,107
Change in plan assets      
Fair value of plan assets at beginning of year 227,340 226,176  
Plan settlements (3,104) 0  
Acquisition 0 0  
Actual return on plan assets (53,283) 5,769  
Employer contributions 831 955  
Employee contributions 786 878  
Benefit payments from fund (6,175) (5,399)  
Foreign currency exchange rate changes and other (1,799) (1,039)  
Fair value of plan assets at end of year 164,596 227,340 226,176
Funded status at end of year (3,436) (8,439)  
Other assets 11,761 18,566  
Other liabilities and accrued items (536) (1,662)  
Retirement and post-employment benefits (14,661) (25,343)  
Other Benefits      
Change in benefit obligation      
Benefit obligation at beginning of year 7,514 8,190  
Service cost 78 80 59
Interest cost 156 116 213
Net pension curtailments and settlements 0 0  
Acquisition 0 0  
Plan amendments 0 0  
Actuarial (gain) loss (1,800) (112)  
Benefit payments (443) (742)  
Foreign currency exchange rate changes and other 0 (18)  
Benefit obligation at end of year 5,505 7,514 8,190
Change in plan assets      
Fair value of plan assets at beginning of year 0 0  
Plan settlements 0 0  
Acquisition 0 0  
Actual return on plan assets 0 0  
Employer contributions 0 0  
Employee contributions 0 0  
Benefit payments from fund 0 0  
Foreign currency exchange rate changes and other 0 0  
Fair value of plan assets at end of year 0 0 $ 0
Funded status at end of year (5,505) (7,514)  
Other assets 0 0  
Other liabilities and accrued items (754) (754)  
Retirement and post-employment benefits $ (4,751) $ (6,760)  
v3.22.4
Pensions and Other Post-Employment Benefits - Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Pension Benefits    
Defined Benefit Plan Disclosure    
Net actuarial loss (gain) $ 43,039 $ 42,440
Net prior service cost (credit) (617) (695)
Net transition obligation/(asset) 0 637
Net amount recognized 42,422 42,382
Other Benefits    
Defined Benefit Plan Disclosure    
Net actuarial loss (gain) (5,573) (4,044)
Net prior service cost (credit) (556) (2,054)
Net transition obligation/(asset) 0 0
Net amount recognized $ (6,129) $ (6,098)
v3.22.4
Pensions and Other Post-Employment Benefits - Schedule of Accumulated and Projected Benefit Obligations (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Pension Benefits    
Defined Benefit Plan Disclosure    
Accumulated benefit obligation for all defined benefit pension plans $ 167,366 $ 233,717
For defined benefit pension plans with benefit obligations in excess of plan assets:    
Aggregate benefit obligation 18,490 58,052
Aggregate fair value of plan assets 3,279 33,148
For defined benefit pension plans with accumulated benefit obligations in excess of plan assets:    
Aggregate accumulated benefit obligation 17,833 56,043
Aggregate fair value of plan assets 3,279 33,148
Other Benefits    
Defined Benefit Plan Disclosure    
Accumulated benefit obligation for all defined benefit pension plans 0 0
For defined benefit pension plans with benefit obligations in excess of plan assets:    
Aggregate benefit obligation 0 0
Aggregate fair value of plan assets 0 0
For defined benefit pension plans with accumulated benefit obligations in excess of plan assets:    
Aggregate accumulated benefit obligation 0 0
Aggregate fair value of plan assets $ 0 $ 0
v3.22.4
Pensions and Other Post-Employment Benefits - Schedule of Net Benefit Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pension Benefits      
Defined Benefit Plan Disclosure      
Service cost $ 1,231 $ 1,722 $ 1,403
Interest cost 4,874 4,186 5,234
Expected return on plan assets (9,570) (9,881) (9,333)
Amortization of prior service credit (78) (82) 0
Recognized net actuarial loss (gain) 1,701 2,344 1,678
Net periodic benefit (credit) cost (1,842) (1,711) (1,018)
Net pension curtailments and settlements (551) 0 94
Total net benefit (credit) cost (2,393) (1,711) (924)
Other Benefits      
Defined Benefit Plan Disclosure      
Service cost 78 80 59
Interest cost 156 116 213
Expected return on plan assets 0 0 0
Amortization of prior service credit (1,497) (1,497) (1,497)
Recognized net actuarial loss (gain) (272) (275) (332)
Net periodic benefit (credit) cost (1,535) (1,576) (1,557)
Net pension curtailments and settlements 0 0 0
Total net benefit (credit) cost $ (1,535) $ (1,576) $ (1,557)
v3.22.4
Pensions and Other Post-Employment Benefits - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pension and other post-retirement benefits (Textual)      
Defined benefit plan, assumptions used calculating benefit obligation, rate of compensation increase 3.50%    
Rate of compensation increase 3.00% 3.00%  
Target funded status percentage 100.00%    
Current asset allocation to invest in alternative securities, maximum 20.00%    
Liability for other post-employment arrangements $ 20,422,000 $ 33,394,000  
Company's annual contributions 13,100,000 9,900,000 $ 9,800,000
Foreign Plan      
Pension and other post-retirement benefits (Textual)      
Liability for other post-employment arrangements 500,000 $ 1,100,000  
Maximum      
Pension and other post-retirement benefits (Textual)      
Lump sum program payments $ 100,000    
Equity securities | Minimum      
Pension and other post-retirement benefits (Textual)      
Defined benefit plan, plan assets, target allocation, percentage 0.00%    
Equity securities | Maximum      
Pension and other post-retirement benefits (Textual)      
Defined benefit plan, plan assets, target allocation, percentage 40.00%    
Fixed Income Funds | Minimum      
Pension and other post-retirement benefits (Textual)      
Defined benefit plan, plan assets, target allocation, percentage 60.00%    
Fixed Income Funds | Maximum      
Pension and other post-retirement benefits (Textual)      
Defined benefit plan, plan assets, target allocation, percentage 90.00%    
v3.22.4
Pensions and Other Post-Employment Benefits - Summary of Cumulative Net Gain (Loss) by Component, Net of Tax, Within Other Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pension Benefits      
Change in other comprehensive income      
OCI at beginning of year $ 42,382 $ 48,673 $ 48,073
Recognized during year — prior service cost (credit) 78 82 0
Recognized during year — net actuarial (losses) gains (1,701) (2,344) (1,678)
Occurring during year — prior service cost 0 0 (799)
Occurring during year — net actuarial losses (gains) 1,112 (4,553) 3,146
Other adjustments 551 0 (94)
Foreign currency exchange rate changes 524 25
OCI at end of year 42,422 42,382 48,673
Other Benefits      
Change in other comprehensive income      
OCI at beginning of year (6,098) (7,525) (9,578)
Recognized during year — prior service cost (credit) 1,497 1,497 1,497
Recognized during year — net actuarial (losses) gains 272 275 332
Occurring during year — prior service cost 0 0 0
Occurring during year — net actuarial losses (gains) (1,800) (345) 224
Other adjustments 0 0 0
Foreign currency exchange rate changes 0 0 0
OCI at end of year $ (6,129) $ (6,098) $ (7,525)
v3.22.4
Pensions and Other Post-Employment Benefits - Summary of Key Valuation Assumptions (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assumptions used to determine benefit obligations at fiscal year end      
Rate of compensation increase 3.50%    
Assumptions used to determine net cost for the fiscal year      
Rate of compensation increase 3.00% 3.00%  
Pension Benefits | Minimum      
Assumptions used to determine benefit obligations at fiscal year end      
Discount rate 2.16% 0.22% 0.03%
Rate of compensation increase 1.75% 1.50% 1.50%
Assumptions used to determine net cost for the fiscal year      
Discount rate 0.22% 0.03% 0.21%
Expected long-term return on plan assets 1.20% 1.20% 1.80%
Rate of compensation increase 1.50% 1.50% 1.50%
Pension Benefits | Maximum      
Assumptions used to determine benefit obligations at fiscal year end      
Discount rate 5.54% 3.02% 2.76%
Rate of compensation increase 3.00% 3.00% 3.00%
Assumptions used to determine net cost for the fiscal year      
Discount rate 3.02% 2.76% 3.48%
Expected long-term return on plan assets 5.25% 5.75% 6.00%
Rate of compensation increase 3.00% 3.00% 3.00%
Other Benefits      
Assumptions used to determine benefit obligations at fiscal year end      
Discount rate 5.52% 2.90% 2.45%
Rate of compensation increase 3.50% 3.00% 3.00%
Assumptions used to determine net cost for the fiscal year      
Discount rate 2.90% 2.45% 3.20%
Rate of compensation increase 3.00% 3.00% 3.00%
v3.22.4
Pensions and Other Post-Employment Benefits - Assumed Health Care Trend Rates (Details)
Dec. 31, 2022
Dec. 31, 2021
Retirement Benefits [Abstract]    
Health care trend rate assumed for next year 6.00% 6.00%
Rate that the trend rate gradually declines to (ultimate trend rate) 5.00% 5.00%
v3.22.4
Pensions and Other Post-Employment Benefits - Summary of Fair Values of the Company's Defined Benefit Pension Plan Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount $ 164,596 $ 227,340
Fair value of plan assets excluding net asset value investments $ 54,570 71,997
Mutual fund that typically invests at least 80% of its assets in equity and debt securities 80.00%  
Level 1    
Defined Benefit Plan Disclosure    
Fair value of plan assets excluding net asset value investments $ 54,570 71,997
Level 2    
Defined Benefit Plan Disclosure    
Fair value of plan assets excluding net asset value investments 0 0
Level 3    
Defined Benefit Plan Disclosure    
Fair value of plan assets excluding net asset value investments 0 0
Cash    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 1,058 4,777
Cash | Level 1    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 1,058 4,777
Cash | Level 2    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Cash | Level 3    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Equity securities    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 37,083 49,618
Equity securities | Level 1    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 37,083 49,618
Equity securities | Level 2    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Equity securities | Level 3    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Fixed-income securities    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 13,314 14,344
Fixed-income securities | Level 1    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 13,314 14,344
Fixed-income securities | Level 2    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Fixed-income securities | Level 3    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Real estate fund    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 3,115 3,258
Real estate fund | Level 1    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 3,115 3,258
Real estate fund | Level 2    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Real estate fund | Level 3    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 0 0
Pooled investment fund    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 103,142 147,832
Multi-strategy hedge funds    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount 6,812 7,438
Private equity funds    
Defined Benefit Plan Disclosure    
Defined benefit plan, plan assets, amount $ 72 $ 73
v3.22.4
Pensions and Other Post-Employment Benefits - Estimated Future Benefits Payments (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Pension Benefits  
Defined Benefit Plan Disclosure  
2023 $ 7,565
2024 8,174
2025 8,880
2026 9,773
2027 10,638
2028 through 2032 56,634
Other Benefits  
Defined Benefit Plan Disclosure  
2023 767
2024 679
2025 608
2026 518
2027 478
2028 through 2032 1,815
Net of Medicare Part D Subsidy  
Defined Benefit Plan Disclosure  
2023 767
2024 679
2025 608
2026 518
2027 478
2028 through 2032 $ 1,815
v3.22.4
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current year activity:      
Beginning balance $ 720,440 $ 655,630 $ 645,743
Other comprehensive income (loss) before reclassifications 331 2,728 3,584
Amounts reclassified from accumulated other comprehensive income (166) (2,682) 2,560
Other comprehensive income (loss) before tax 165 46 6,144
Deferred taxes on current period activity 1,905 1,576 (679)
Other comprehensive income (loss) (1,740) (1,530) 6,823
Ending balance 799,990 720,440 655,630
Gains and Losses On Cash Flow Hedges      
Current year activity:      
Beginning balance 2,420 817 897
Other comprehensive income (loss) before reclassifications 6,594 5,204 (2,725)
Amounts reclassified from accumulated other comprehensive income (552) (3,119) 2,617
Other comprehensive income (loss) before tax 6,042 2,085 (108)
Deferred taxes on current period activity 1,387 482 (28)
Other comprehensive income (loss) 4,655 1,603 (80)
Ending balance 7,075 2,420 817
Pension and Post- Employment Benefits      
Current year activity:      
Beginning balance (39,702) (43,473) (41,346)
Other comprehensive income (loss) before reclassifications (394) 4,428 (2,721)
Amounts reclassified from accumulated other comprehensive income 386 437 (57)
Other comprehensive income (loss) before tax (8) 4,865 (2,778)
Deferred taxes on current period activity 518 1,094 (651)
Other comprehensive income (loss) (526) 3,771 (2,127)
Ending balance (40,228) (39,702) (43,473)
Foreign Currency Translation      
Current year activity:      
Beginning balance (2,887) 4,017 (5,013)
Other comprehensive income (loss) before reclassifications (5,869) (6,904) 9,030
Amounts reclassified from accumulated other comprehensive income 0 0 0
Other comprehensive income (loss) before tax (5,869) (6,904) 9,030
Deferred taxes on current period activity 0 0 0
Other comprehensive income (loss) (5,869) (6,904) 9,030
Ending balance (8,756) (2,887) 4,017
Accumulated Other Comprehensive Income (Loss)      
Current year activity:      
Beginning balance (40,169) (38,639) (45,462)
Ending balance (41,909) (40,169) (38,639)
Foreign Currency | Gains and Losses On Cash Flow Hedges      
Current year activity:      
Beginning balance 2,348 519 1,324
Other comprehensive income (loss) before reclassifications (1,260) 2,252 (1,268)
Amounts reclassified from accumulated other comprehensive income (176) 123 222
Other comprehensive income (loss) before tax (1,436) 2,375 (1,046)
Deferred taxes on current period activity (331) 546 (241)
Other comprehensive income (loss) (1,105) 1,829 (805)
Ending balance 1,243 2,348 519
Interest Rate | Gains and Losses On Cash Flow Hedges      
Current year activity:      
Beginning balance 0 0 0
Other comprehensive income (loss) before reclassifications 8,113 0 0
Amounts reclassified from accumulated other comprehensive income (250) 0 0
Other comprehensive income (loss) before tax 7,863 0 0
Deferred taxes on current period activity 1,808 0 0
Other comprehensive income (loss) 6,055 0 0
Ending balance 6,055 0 0
Precious Metals | Gains and Losses On Cash Flow Hedges      
Current year activity:      
Beginning balance 72 (170) (452)
Other comprehensive income (loss) before reclassifications (259) 508 (1,675)
Amounts reclassified from accumulated other comprehensive income (126) (193) 2,041
Other comprehensive income (loss) before tax (385) 315 366
Deferred taxes on current period activity (90) 73 84
Other comprehensive income (loss) (295) 242 282
Ending balance (223) 72 (170)
Copper | Gains and Losses On Cash Flow Hedges      
Current year activity:      
Beginning balance 0 468 25
Other comprehensive income (loss) before reclassifications 0 2,444 218
Amounts reclassified from accumulated other comprehensive income 0 (3,049) 354
Other comprehensive income (loss) before tax 0 (605) 572
Deferred taxes on current period activity 0 (137) 129
Other comprehensive income (loss) 0 (468) 443
Ending balance $ 0 $ 0 $ 468
v3.22.4
Stock-Based Compensation - Additional Information (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
plan
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award      
Number of plans | plan 2    
Stock-based compensation expense $ 9,000 $ 7,300 $ 5,700
Income tax expense (benefit) (17,110) (4,851) 7,187
Total intrinsic value of stock options exercised $ 2,100 1,600 500
Shares deferred (in shares) | shares 100,000    
Equity securities      
Share-based Compensation Arrangement by Share-based Payment Award      
Income tax expense (benefit) $ 1,000 900 500
Stock appreciation rights      
Share-based Compensation Arrangement by Share-based Payment Award      
Stock-based compensation expense $ 900    
Vesting period (in years) 3 years    
Unearned compensation $ 1,300    
Expected recognition period (in months) 22 months    
Vested in period $ 900 $ 800 $ 1,500
Granted (in dollars per share) | $ / shares $ 25.87 $ 20.66 $ 13.67
Granted (in shares) | shares 45,000    
Stock appreciation rights | Granted in 2011 and later      
Share-based Compensation Arrangement by Share-based Payment Award      
Expiration period (in years) 7 years    
Restricted stock units | Stock Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Stock-based compensation expense $ 3,500 $ 3,500 $ 2,700
Vesting period (in years) 3 years    
Unearned compensation $ 5,500    
Expected recognition period (in months) 23 months    
Vested in period $ 2,800 $ 2,000 $ 1,200
Granted (in dollars per share) | $ / shares $ 80.96 $ 68.62 $ 51.55
Granted (in shares) | shares 61,000    
Restricted stock units | Director Equity Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Stock-based compensation expense $ 900 $ 800 $ 700
Vesting period (in years) 1 year    
Unearned compensation $ 300    
Expected recognition period (in months) 4 months    
Granted (in dollars per share) | $ / shares $ 81.59 $ 75.77 $ 48.42
Granted (in shares) | shares 11,120 9,904 15,976
Performance-based restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award      
Stock-based compensation expense $ 3,600 $ 2,200 $ 2,000
Vesting period (in years) 3 years    
Granted (in dollars per share) | $ / shares $ 95.44    
Granted (in shares) | shares 38,000    
Performance-based restricted stock units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award      
Percentage of units earned of units granted 0.00%    
Performance-based restricted stock units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award      
Percentage of units earned of units granted 200.00%    
v3.22.4
Stock-based Compensation - SARs/Stock Options Roll Forward (Details) - Stock appreciation rights
$ / shares in Units, shares in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Number of SARs  
Outstanding, beginning of period (in shares) | shares 260
Granted (in shares) | shares 45
Exercised (in shares) | shares (49)
Cancelled (in shares) | shares 0
Outstanding, end of period (in shares) | shares 256
Vested and expected to vest (in shares) | shares 256
Exercisable (in shares) | shares 160
Weighted- average Exercise Price Per Share  
Outstanding, beginning of period (in dollars per share) | $ / shares $ 51.55
Granted (in dollars per share) | $ / shares 80.85
Exercised (in dollars per share) | $ / shares 42.83
Cancelled (in dollars per share) | $ / shares 0
Outstanding, end of period (in dollars per share) | $ / shares 58.38
Vested and expected to vest (in dollars per share) | $ / shares 58.38
Exercisable (in dollars per share) | $ / shares $ 50.56
Aggregate Intrinsic Value (thousands)  
Outstanding at December 31, 2022 | $ $ 7,448
Vested and expected to vest as of December 31, 2022 | $ 7,448
Exercisable at December 31, 2022 | $ $ 5,928
Weighted- average Remaining Term (Years)  
Outstanding at December 31, 2021 (in years) 3 years 9 months 18 days
Vested and expected to vest as of December 31, 2021 (in years) 3 years 9 months 18 days
Exercisable at December 31, 2021 (in years) 2 years 9 months 18 days
v3.22.4
Stock-based Compensation - SARs/Stock Options Nonvested Share Activity (Details) - Stock appreciation rights - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of SARs      
Outstanding, beginning of period (in shares) 100    
Granted (in shares) 45    
Vested (in shares) (50)    
Cancelled (in shares) 0    
Outstanding, end of period (in shares) 95 100  
Weighted- average Grant Date Fair Value      
Outstanding, beginning of period (in dollars per share) $ 17.98    
Granted (in dollars per share) 25.87 $ 20.66 $ 13.67
Vested (in dollars per share) 17.47    
Cancelled (in dollars per share) 0    
Outstanding, end of period (in dollars per share) $ 21.97 $ 17.98  
v3.22.4
Stock-based Compensation - SARS/Stock Options, Valuation Assumptions (Details) - Stock appreciation rights
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award      
Risk-free interest rate 1.56% 0.57% 1.41%
Dividend yield 0.60% 0.70% 0.90%
Volatility 38.50% 37.60% 31.80%
Expected lives (in years) 4 years 4 months 24 days 4 years 7 months 6 days 4 years 9 months 18 days
v3.22.4
Stock-based Compensation - Summary of Restricted Stock Activity (Details) - Stock Incentive Plan - Restricted stock units - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of Shares      
Outstanding, beginning of period (in shares) 162    
Granted (in shares) 61    
Vested (in shares) (49)    
Forfeited (in shares) (9)    
Outstanding, end of period (in shares) 165 162  
Weighted- average Grant Date Fair Value      
Outstanding, beginning of period (in dollars per share) $ 59.23    
Granted (in dollars per share) 80.96 $ 68.62 $ 51.55
Vested (in dollars per share) 58.29    
Forfeited (in dollars per share) 64.91    
Outstanding, end of period (in dollars per share) $ 67.31 $ 59.23  
v3.22.4
Stock-based Compensation - Schedule of Share-based Compensation, Performance Based Restricted Stock Unit Activity (Details) - Performance-based restricted stock units
shares in Thousands
12 Months Ended
Dec. 31, 2022
$ / shares
shares
Number of Shares  
Outstanding, beginning of period (in shares) | shares 119
Granted (in shares) | shares 38
Vested (in shares) | shares (43)
Forfeited (in shares) | shares (3)
Outstanding, end of period (in shares) | shares 111
Weighted- Average Grant Date Fair Value  
Outstanding, beginning of period (in dollars per share) | $ / shares $ 70.77
Granted (in dollars per share) | $ / shares 95.44
Vested (in dollars per share) | $ / shares 69.84
Forfeited (in dollars per share) | $ / shares 79.01
Outstanding, end of period (in dollars per share) | $ / shares $ 79.31
v3.22.4
Fair Value Information and Derivative Financial Instruments - Summary of Fair Value Information and Derivative Financial Instruments (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets $ 12,273 $ 7,730
Financial Liabilities 5,169 4,406
Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 3,001 4,246
Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 1,291 3,368
Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 7,863  
Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 118 116
Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 3,001 4,246
Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 1,757 136
Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0  
Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 411 24
Level 1    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 3,001 4,246
Financial Liabilities 3,001 4,246
Level 1 | Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 3,001 4,246
Level 1 | Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Level 1 | Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets  
Level 1 | Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Level 1 | Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 3,001 4,246
Level 1 | Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0 0
Level 1 | Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities  
Level 1 | Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0 0
Level 2    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 9,272 3,484
Financial Liabilities 2,168 160
Level 2 | Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Level 2 | Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 1,291 3,368
Level 2 | Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 7,863  
Level 2 | Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 118 116
Level 2 | Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0 0
Level 2 | Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 1,757 136
Level 2 | Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0  
Level 2 | Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 411 24
Level 3    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Financial Liabilities 0 0
Level 3 | Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Level 3 | Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Level 3 | Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets  
Level 3 | Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Assets 0 0
Level 3 | Deferred compensation investments    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0 0
Level 3 | Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities 0 0
Level 3 | Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities  
Level 3 | Precious metal swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Financial Liabilities $ 0 $ 0
v3.22.4
Fair Value Information and Derivative Financial Instruments - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Mar. 04, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Foreign currency gain (loss) related to derivatives $ 200,000 $ 1,200,000    
Total derivative ineffectiveness expense 0 0 $ 0  
Total fair value of derivative contracts in AOCI 7,400,000 $ 1,300,000    
Derivative, gain (loss) on derivative, net 3,900,000      
Letter of Credit | Interest rate swap | Designated as Hedging Instrument        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative, notional amount       $ 100,000,000
Letter of Credit | Interest rate swap | Designated as Hedging Instrument | Level 2        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Fair value of interest rate swap asset $ 7,900,000      
v3.22.4
Fair Value Information and Derivative Financial Instruments - Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - Foreign currency forward contracts - euro - Foreign currency forward contracts - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Prepaid expenses    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset, notional amount $ 12,242 $ 55,063
Derivative asset, fair value, gross asset 791 2,132
Other liabilities and accrued items    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability, notional amount 17,061 9,425
Derivative liability, fair value, gross liability $ 1,048 $ 128
v3.22.4
Fair Value Information and Derivative Financial Instruments - Summary of the Notional Amount and the Fair Value of the Company's Outstanding Derivatives (Details) - Designated as Hedging Instrument - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, notional amount $ 137,455 $ 38,575
Precious metal swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, notional amount 8,758 6,256
Interest rate swap    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, notional amount 100,000  
Prepaid expenses    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 3,732 1,349
Prepaid expenses | Precious metal swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 118 116
Prepaid expenses | Interest rate swap    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 3,114  
Other assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 4,749 2
Other assets | Precious metal swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 0 0
Other assets | Interest rate swap    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 4,749  
Other liabilities and accrued items    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 957 24
Other liabilities and accrued items | Precious metal swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 411 24
Other liabilities and accrued items | Interest rate swap    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 0  
Other long-term liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 163 8
Other long-term liabilities | Precious metal swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 0
Other long-term liabilities | Interest rate swap    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 0  
Foreign currency forward contracts - yen | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, notional amount 2,985 3,907
Foreign currency forward contracts - yen | Prepaid expenses | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 145 131
Foreign currency forward contracts - yen | Other assets | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 0 2
Foreign currency forward contracts - yen | Other liabilities and accrued items | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 74 0
Foreign currency forward contracts - yen | Other long-term liabilities | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 26 0
Foreign currency forward contracts - euro | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, notional amount 25,712 28,412
Foreign currency forward contracts - euro | Prepaid expenses | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 355 1,102
Foreign currency forward contracts - euro | Other assets | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative asset, fair value, gross asset 0 0
Foreign currency forward contracts - euro | Other liabilities and accrued items | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability 472 0
Foreign currency forward contracts - euro | Other long-term liabilities | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative liability, fair value, gross liability $ 137 $ 8
v3.22.4
Fair Value Information and Derivative Financial Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, gain (loss) on derivative, net $ (552) $ (3,119)
Foreign currency forward contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Net sales Net sales
Foreign currency forward contracts | Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, gain (loss) on derivative, net $ (176) $ 123
Precious metal swaps | Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, gain (loss) on derivative, net (126) (193)
Interest rate swap | Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, gain (loss) on derivative, net (250) 0
Copper swaps | Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative, gain (loss) on derivative, net $ 0 $ (3,049)
v3.22.4
Contingencies and Commitments - Additional Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
claim
Dec. 31, 2021
USD ($)
Contingencies And Commitments (Textual) [Abstract]    
Number of cases pending 1  
Number of cases resolved 1  
Letter of Credit    
Contingencies And Commitments (Textual) [Abstract]    
Outstanding letters of credit | $ $ 46.5 $ 46.3
v3.22.4
Contingencies and Commitments - Undiscounted Reserve (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Undiscounted reserve    
Reserve balance at beginning of year $ 4,770 $ 5,476
Expensed 180 185
Paid (480) (891)
Reserve balance at end of year 4,470 4,770
Other liabilities and accrued items    
Undiscounted reserve    
Reserve balance at beginning of year 539  
Reserve balance at end of year $ 440 $ 539
Ending balance recorded in:    
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Other long-term liabilities    
Undiscounted reserve    
Reserve balance at beginning of year $ 4,231  
Reserve balance at end of year $ 4,030 $ 4,231
Ending balance recorded in:    
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
v3.22.4
Contingencies and Commitments - Schedule of Asset Retirement Obligations (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Asset Retirement Obligation    
Asset retirement obligation at beginning of period $ 2,231 $ 1,765
Accretion expense 198 134
Change in liability 0 332
Asset retirement obligation at end of period $ 2,429 $ 2,231
v3.22.4
Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deducted from asset accounts:        
Valuation allowances reversal $ 6,900      
Balance sheet impact to deferred taxes 3,800      
Valuation allowance on deferred tax assets:        
Deducted from asset accounts:        
Balance at Beginning of Period   $ 4,957 $ 14,134 $ 17,676
Charged to Costs and Expenses   373 497 884
Charged to Other Accounts   0 1,019 0
Deductions   (395) (10,693) (4,426)
Balance at End of Period $ 4,957 $ 4,935 $ 4,957 $ 14,134