MATERION CORP, 10-Q filed on 11/2/2021
Quarterly Report
v3.21.2
Cover
 9 Months Ended
Oct. 01, 2021
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Oct. 01, 2021
Document Transition Report false
Entity File Number 001-15885
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 Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 20,439,191
Entity Central Index Key 0001104657
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2021
Document Fiscal Period Focus Q3
Amendment Flag false
v3.21.2
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Income Statement [Abstract]        
Net sales $ 388,028 $ 287,171 [1] $ 1,113,413 $ 836,585 [1]
Cost of sales 313,715 241,860 [1] 902,723 699,749 [1]
Gross margin 74,313 45,311 [1] 210,690 136,836 [1]
Selling, general, and administrative expense 43,195 35,696 [1] 118,031 99,292 [1]
Research and development expense 6,354 5,417 [1] 19,164 14,104 [1]
Goodwill impairment charges 0 0 [1] 0 9,053 [1]
Asset impairment charges 0 0 [1] 0 1,713 [1]
Restructuring (income) expense 0 2,593 [1] (378) 7,144 [1]
Other—net 3,604 2,221 [1] 12,272 4,143 [1]
Operating profit (loss) 21,160 (616) [1] 61,601 1,387 [1]
Other non-operating income—net (1,279) (1,076) [1] (3,832) (2,871) [1]
Interest expense—net 861 1,334 [1] 2,480 2,839 [1]
Income (Loss) before income taxes 21,578 (874) [1] 62,953 1,419 [1]
Income tax expense (benefit) 3,422 (6,345) [1] 10,162 (5,977) [1]
Net income $ 18,156 [1] $ 5,471 [2] $ 52,791 [1] $ 7,396 [2],[3]
Basic earnings per share:        
Net income per share of common stock (in dollars per share) $ 0.89 $ 0.27 [1] $ 2.59 $ 0.36 [1]
Diluted earnings per share:        
Net income per share of common stock (in dollars per share) $ 0.88 $ 0.27 [1] $ 2.56 $ 0.36 [1]
Weighted-average number of shares of common stock outstanding:        
Basic (in shares) 20,439 20,325 [1] 20,414 20,342 [1]
Diluted (in shares) 20,657 20,592 [1] 20,659 20,595 [1]
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[2] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[3] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
 [2]
Oct. 01, 2021
Sep. 25, 2020
 [2]
Statement of Comprehensive Income [Abstract]        
Net income $ 18,156 [1] $ 5,471 $ 52,791 [1] $ 7,396 [3]
Other comprehensive (loss) income:        
Foreign currency translation adjustment (2,029) 3,076 (7,693) 3,369
Derivative and hedging activity, net of tax 439 (315) 1,411 (822)
Pension and post-employment benefit adjustment, net of tax 121 29 368 134
Other comprehensive (loss) income (1,469) 2,790 (5,914) 2,681
Comprehensive income $ 16,687 $ 8,261 $ 46,877 $ 10,077
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[2] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[3] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 18,009 $ 25,878
Accounts receivable, net 190,601 166,447
Inventories, net 311,745 250,778
Prepaid and other current assets 36,138 20,896
Total current assets 556,493 463,999
Deferred income taxes 1,908 3,134
Property, plant, and equipment 1,069,592 998,312
Less allowances for depreciation, depletion, and amortization (715,158) (688,626)
Property, plant, and equipment, net 354,434 309,686
Operating lease, right-of-use assets 56,556 62,089
Intangible assets, net 49,012 54,672
Other assets 23,269 19,364
Goodwill 140,990 144,916
Total Assets 1,182,662 1,057,860
Current liabilities    
Short-term debt 529 1,937
Accounts payable 71,576 55,640
Salaries and wages 37,168 18,809
Other liabilities and accrued items 54,749 40,887
Income taxes 439 1,898
Unearned revenue 8,308 7,713
Total current liabilities 172,769 126,884
Other long-term liabilities 17,572 17,002
Operating lease liabilities 52,177 56,761
Finance lease liabilities 17,285 20,539
Retirement and post-employment benefits 39,216 41,877
Unearned income 93,061 86,761
Deferred income taxes 14,118 15,864
Long-term debt 79,036 36,542
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 at both October 1st and December 31st) 269,716 258,642
Retained earnings 676,527 631,058
Common stock in treasury (208,952) (199,187)
Accumulated other comprehensive loss (44,553) (38,639)
Other equity 4,690 3,756
Total shareholders' equity [1] 697,428 655,630
Total Liabilities and Shareholders’ Equity $ 1,182,662 $ 1,057,860
Serial preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Serial preferred stock, par value (in dollars per share) $ 0 $ 0
Serial preferred stock, shares issued (in shares) 0 0
Common stock, shares authorized (in shares) 60,000,000 60,000,000
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, shares, issued (in shares) 27,148,000 27,148,000
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Oct. 01, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Serial preferred stock, par value (in dollars per share) $ 0 $ 0
Serial preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Serial preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 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
v3.21.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
 [2]
Cash flows from operating activities:    
Net income $ 52,791 [1] $ 7,396 [3]
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion, and amortization 32,478 32,042
Amortization of deferred financing costs in interest expense 546 547
Stock-based compensation expense (non-cash) 4,924 3,989
Deferred income tax benefit (263) (5,981)
Impairment charges 0 10,766
Changes in assets and liabilities, net of acquired assets and liabilities:    
Accounts receivable (26,041) 13,899
Inventory (62,353) (6,414)
Prepaid and other current assets (7,020) (686)
Accounts payable 14,863 6,281
Accrued expenses 20,451 (16,040)
Unearned revenue 650 (298)
Interest and taxes payable (1,504) 143
Unearned income due to customer prepayments 9,022 40,385
Other-net 1,974 (6,585)
Net cash provided by operating activities 40,518 79,444
Cash flows from investing activities:    
Payments for acquisition, net of cash acquired 0 (130,715)
Payments for purchase of property, plant, and equipment (77,640) (46,285)
Proceeds from settlement of currency exchange contract 0 3,249
Proceeds from sale of property, plant, and equipment 686 35
Net cash used in investing activities (76,954) (173,716)
Cash flows from financing activities:    
Proceeds from borrowings under revolving credit agreement, net 43,010 120,000
Repayment of long-term debt (1,803) (16,357)
Principal payments under finance lease obligations (2,152) (1,440)
Cash dividends paid (7,243) (6,920)
Repurchase of common stock 0 (6,766)
Payments of withholding taxes for stock-based compensation awards (3,033) (2,212)
Net cash provided by financing activities 28,779 86,305
Effects of exchange rate changes (212) 714
Net change in cash and cash equivalents (7,869) (7,253)
Cash and cash equivalents at beginning of period 25,878 125,007
Cash and cash equivalents at end of period $ 18,009 $ 117,754
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[2] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[3] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Shares
Common Shares Held in Treasury
Common Stock
Retained Earnings
Common Stock in Treasury
Accumulated Other Comprehensive Loss
Other Equity
Beginning balance (in shares) at Dec. 31, 2019   20,404            
Beginning balances (in shares) at Dec. 31, 2019     (6,744)          
Beginning balances at Dec. 31, 2019 $ 645,743 [1]     $ 249,674 $ 624,954 [2] $ (186,845) $ (45,462) $ 3,422
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 7,396 [3],[4]       7,396 [2]      
Other comprehensive income (loss) 2,681 [1]           2,681  
Cash dividends declared (6,920) [1]       (6,920) [2]      
Stock-based compensation activity (in shares)   117 117          
Stock-based compensation activity 4,080 [1]     7,272   (3,133)    
Stock-based compensation activity [2]         (59)      
Payments of withholding taxes for stock-based compensation awards (in shares)   (39)            
Payments of withholding taxes for stock-based compensation awards (2,212) [1]   $ (39)     (2,212)    
Repurchase of shares (in shares)   (158) (158)          
Repurchase of shares (6,766) [1]         (6,766)    
Directors' deferred compensation (in shares)   3 3          
Directors' deferred compensation 170 [1]     73   (229)   326
Ending balance (in shares) at Sep. 25, 2020   20,327            
Ending balances (in shares) at Sep. 25, 2020     (6,821)          
Ending balances at Sep. 25, 2020 644,172 [1]     257,019 625,371 [2] (199,185) (42,781) 3,748
Beginning balance (in shares) at Jun. 26, 2020   20,322            
Beginning balances (in shares) at Jun. 26, 2020     (6,826)          
Beginning balances at Jun. 26, 2020 638,356 [1]     256,756 622,219 [2] (198,726) (45,571) 3,678
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 5,471 [4]       5,471 [2]      
Other comprehensive income (loss) 2,790 [1]           2,790  
Cash dividends declared (2,338) [1]       (2,338) [2]      
Stock-based compensation activity (in shares)   7 7          
Stock-based compensation activity 23 [1]     235   (231)    
Stock-based compensation activity [2]         19      
Payments of withholding taxes for stock-based compensation awards (in shares)   (3)            
Payments of withholding taxes for stock-based compensation awards (187) [1]   $ (3)     (187)    
Directors' deferred compensation (in shares)   1 1          
Directors' deferred compensation 57 [1]     28   (41)   70
Ending balance (in shares) at Sep. 25, 2020   20,327            
Ending balances (in shares) at Sep. 25, 2020     (6,821)          
Ending balances at Sep. 25, 2020 644,172 [1]     257,019 625,371 [2] (199,185) (42,781) 3,748
Beginning balance (in shares) at Dec. 31, 2020   20,328            
Beginning balances (in shares) at Dec. 31, 2020     (6,820)          
Beginning balances at Dec. 31, 2020 655,630 [1]     258,642 631,058 [2] (199,187) (38,639) 3,756
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 52,791 [1]       52,791 [2]      
Other comprehensive income (loss) (5,914) [1]           (5,914)  
Cash dividends declared (7,243) [1]       (7,243) [2]      
Stock-based compensation activity (in shares)   152 152          
Stock-based compensation activity 4,924 [1]     10,932   (5,929)    
Stock-based compensation activity [2]         (79)      
Payments of withholding taxes for stock-based compensation awards (in shares)   (45)            
Payments of withholding taxes for stock-based compensation awards (3,033) [1]   $ (45)     (3,033)    
Directors' deferred compensation (in shares)   4 4          
Directors' deferred compensation 273 [1]     142   (803)   934
Ending balance (in shares) at Oct. 01, 2021   20,439            
Ending balances (in shares) at Oct. 01, 2021     (6,709)          
Ending balances at Oct. 01, 2021 697,428 [1]     269,716 676,527 [2] (208,952) (44,553) 4,690
Beginning balance (in shares) at Jul. 02, 2021   20,438            
Beginning balances (in shares) at Jul. 02, 2021     (6,710)          
Beginning balances at Jul. 02, 2021 681,701 [1]     268,205 660,851 [2] (208,854) (43,084) 4,583
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 18,156 [1]       18,156 [2]      
Other comprehensive income (loss) (1,469) [1]           (1,469)  
Cash dividends declared (2,452) [1]       (2,452) [2]      
Stock-based compensation activity 1,412 [1]     1,458   (18)    
Stock-based compensation activity [2]         (28)      
Payments of withholding taxes for stock-based compensation awards (12) [1]         (12)    
Directors' deferred compensation (in shares)   1 1          
Directors' deferred compensation 92 [1]     53   (68)   107
Ending balance (in shares) at Oct. 01, 2021   20,439            
Ending balances (in shares) at Oct. 01, 2021     (6,709)          
Ending balances at Oct. 01, 2021 $ 697,428 [1]     $ 269,716 $ 676,527 [2] $ (208,952) $ (44,553) $ 4,690
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[2] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[3] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[4] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Statement of Stockholders' Equity [Abstract]        
Cash dividends declared (in dollars per share) $ 0.12 $ 0.115 $ 0.355 $ 0.34
v3.21.2
Accounting Policies
 9 Months Ended
Oct. 01, 2021
Accounting Policies [Abstract]  
Accounting Policies Accounting Policies
Basis of Presentation: The accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior periods have been reclassified to conform to the 2021 consolidated financial statement presentation.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2020 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year.

Business Combinations: The Company records assets acquired and liabilities assumed at the date of acquisition at their respective fair values. Any 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.

Change in Accounting Principle: During the fourth quarter of 2020, the Company elected to change its method for valuing its inventories at locations that previously used the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method. The Company believes that the FIFO method is preferable as it improves comparability with its most similar peers, it more closely resembles the physical flow of its inventory (i.e., it provides better matching of revenues and expenses), and it results in uniformity across a significant majority of the Company’s inventory. The effects of the change in accounting principle from LIFO to FIFO were retrospectively applied. As a result of the retrospective application of the change in accounting principle, certain financial statement line items in the Company’s consolidated balance sheet as of September 25, 2020 and the consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for the three and nine months ended September 25, 2020 were adjusted as necessary. For further information, refer to the Company's 2020 Annual Report on Form 10-K.
The following tables reflect the impact to the financial statement line items as a result of the change in accounting principle for the prior periods presented in the accompanying financial statements:

Consolidated Statement of Income

(Thousands except per share amounts)
Third Quarter EndedNine Months Ended
September 25, 2020September 25, 2020
Selected ItemsAs ReportedAs AdjustedAdjustmentAs ReportedAs AdjustedAdjustment
Cost of sales$240,531 $241,860 $1,329 $696,280 $699,749 $3,469 
Gross margin46,640 45,311 (1,329)140,305 136,836 (3,469)
Operating profit (loss)713 (616)(1,329)4,856 1,387 (3,469)
Income (Loss) before income taxes455 (874)(1,329)4,888 1,419 (3,469)
Income tax benefit(6,041)(6,345)(304)(5,183)(5,977)(794)
Net income6,496 5,471 (1,025)10,071 7,396 (2,675)
Basic earnings per share:
Net income per share of common stock$0.32 $0.27 $(0.05)$0.50 $0.36 $(0.14)
Diluted earnings per share:
Net income per share of common stock$0.32 $0.27 $(0.05)$0.49 $0.36 $(0.13)

Consolidated Statement of Comprehensive Income
(Thousands)
Third Quarter EndedNine Months Ended
September 25, 2020September 25, 2020
Selected ItemsAs ReportedAs AdjustedAdjustmentAs ReportedAs AdjustedAdjustment
Net income$6,496 $5,471 $(1,025)$10,071 $7,396 $(2,675)
Comprehensive income9,286 8,261 (1,025)12,752 10,077 (2,675)

Consolidated Statement of Cash Flows
(Thousands)
Nine Months Ended
September 25, 2020
Selected ItemsAs ReportedAs AdjustedAdjustment
Net income$10,071 $7,396 $(2,675)
Deferred income tax benefit(5,187)(5,981)(794)
Increase in inventory(9,883)(6,414)3,469 

New Pronouncements Adopted: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted the standard on January 1, 2021. The adoption did not materially impact the Company's financial statements or disclosures.

New Accounting Guidance Issued and Not Yet Adopted: 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. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently assessing which of its various contracts will require an update for a new reference rate, and will determine the timing for implementation of this guidance at the completion of that analysis.No other recently issued or effective ASUs had, or are expected to have, a material effect on the Company's results of operations, financial condition, or liquidity.
v3.21.2
Acquisition
 9 Months Ended
Oct. 01, 2021
Business Combinations [Abstract]  
Acquisition AcquisitionBusiness acquisitions have been accounted for using the acquisition method, with acquired assets and assumed liabilities recognized at their respective fair values as of the acquisition date. The cost in excess of the net assets of the business acquired is included in goodwill. On July 17, 2020, the Company completed the acquisition of Optics Balzers AG (Optics Balzers), an industry leader in thin film optical coatings. The purchase price for Optics Balzers was $136.1 million, including the assumption of $22.5 million of debt. The transaction was funded with cash on hand. Based on the fair value of assets acquired and liabilities assumed, goodwill of $70.8 million and identifiable intangible assets of $49.3 million were recorded. Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in the Company's Precision Optics segment and the results of Optics Balzers are not material to the Company's Consolidated Financial Statements. No material measurement period adjustments have been recorded during the third quarter or first nine months of 2021, and as of October 1, 2021, the purchase price allocation is complete.
v3.21.2
Segment Reporting
 9 Months Ended
Oct. 01, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
 
The Company has the following reportable segments: Performance Alloys and Composites, Advanced Materials, Precision Optics, and Other. The Company’s reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's chief operating decision maker, in determining how to allocate the Company’s resources and evaluate performance.
Performance Alloys and Composites produces strip and bulk form alloy products, strip metal products with clad inlay and overlay metals, beryllium-based metals, beryllium, and aluminum metal matrix composites, in rod, sheet, foil, and a variety of customized forms, and beryllia ceramics.
Advanced Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature, and braze materials.
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.
(Thousands)Performance
Alloys and
Composites		Advanced MaterialsPrecision OpticsOtherTotal
Third Quarter 2021
Net sales$136,096 $220,723 $31,209 $— $388,028 
Intersegment sales
32 3,036 — — 3,068 
Operating profit (loss)20,928 9,281 3,329 (12,378)21,160 
Third Quarter 2020
Net sales$91,203 $165,582 $30,386 $— $287,171 
Intersegment sales— 6,602 ——6,602 
Operating (loss) profit(437)5,749 1,421 (7,349)(616)
First Nine Months 2021
Net sales$375,533 $638,481 $99,399 $— $1,113,413 
Intersegment sales
47 8,908 — — 8,955 
Operating profit (loss)51,733 26,547 10,513 (27,192)61,601 
First Nine Months 2020
Net sales$291,884 $475,855 $68,846 $— $836,585 
Intersegment sales2 24,790 ——24,792 
Operating profit (loss)9,910 15,452 (6,080)(17,895)1,387 
The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2021 and 2020:
 (Thousands)Performance Alloys and CompositesAdvanced MaterialsPrecision OpticsOtherTotal
Third Quarter 2021
End Market
Semiconductor$3,163 $173,689 $630 $— $177,482 
Industrial31,521 10,479 8,296 — 50,296 
Aerospace and defense19,129 1,622 5,652 — 26,403 
Consumer electronics9,717 530 7,788 — 18,035 
Automotive28,922 1,719 2,571 — 33,212 
Energy7,524 27,081 — — 34,605 
Telecom and data center14,980 31 — — 15,011 
Other21,140 5,572 6,272 — 32,984 
Total$136,096 $220,723 $31,209 $— $388,028 
Third Quarter 2020
End Market
Semiconductor$983 $131,380 $1,008 $— $133,371 
Industrial21,630 9,967 4,976 — 36,573 
Aerospace and defense14,740 1,687 4,867 — 21,294 
Consumer electronics11,074 78 6,550 — 17,702 
Automotive14,077 1,477 1,059 — 16,613 
Energy5,825 16,693 — — 22,518 
Telecom and data center10,452 500 — — 10,952 
Other12,422 3,800 11,926 — 28,148 
Total$91,203 $165,582 $30,386 $— $287,171 
 (Thousands)Performance Alloys and CompositesAdvanced MaterialsPrecision OpticsOtherTotal
First Nine Months 2021
End Market
Semiconductor$5,966 $495,718 $1,664 $— $503,348 
Industrial85,815 33,756 23,305 — 142,876 
Aerospace and defense60,221 4,680 17,825 — 82,726 
Consumer electronics30,483 961 24,212 — 55,656 
Automotive78,195 5,145 6,871 — 90,211 
Energy16,541 78,487 — — 95,028 
Telecom and data center39,348 140 — — 39,488 
Other58,964 19,594 25,522 — 104,080 
Total$375,533 $638,481 $99,399 $— $1,113,413 
First Nine Months 2020
End Market
Semiconductor$3,426 $376,107 $1,251 $— $380,784 
Industrial68,801 26,748 10,647 — 106,196 
Aerospace and defense46,898 4,764 14,095 — 65,757 
Consumer electronics35,725 216 13,496 — 49,437 
Automotive48,656 4,743 1,083 — 54,482 
Energy16,844 49,488 — — 66,332 
Telecom and data center33,027 2,158 — — 35,185 
Other38,507 11,631 28,274 — 78,412 
Total$291,884 $475,855 $68,846 $— $836,585 
Intersegment sales are eliminated in consolidation.
v3.21.2
Revenue Recognition
 9 Months Ended
Oct. 01, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue, in an amount that reflects the consideration to which it expects to be entitled, upon satisfaction of a performance obligation, by transferring control over a product to the customer. Control over the product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product.

Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at October 1, 2021. 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 October 1, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $81.0 million.
Contract Balances: The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:
(Thousands)October 1, 2021December 31, 2020$ change% change
Accounts receivable, trade
$176,766 $156,821 $19,945 13 %
Unbilled receivables
12,450 8,832 3,618 41 %
Unearned revenue
8,308 7,713 595 8 %

Accounts receivable, trade represents payments due from customers relating to the transfer of the Company’s products and services. The Company believes that its receivables are collectible and appropriate allowances for doubtful accounts have been recorded. Impairment losses (bad debt) incurred relating to our receivables were immaterial during the first nine months of 2021.

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

Unearned revenue is recorded for consideration received from customers in advance of satisfaction of the related performance obligations. The Company recognized approximately $5.6 million of the December 31, 2020 unearned amounts as revenue during the first nine months of 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.
v3.21.2
Other-net
 9 Months Ended
Oct. 01, 2021
Other Income and Expenses [Abstract]  
Other-net Other-net
Other-net for the third quarter and first nine months of 2021 and 2020 is summarized as follows: 
 Third Quarter EndedNine Months Ended
 October 1,September 25,October 1,September 25,
(Thousands)2021202020212020
Metal consignment fees$2,243 $2,317 $6,857 $6,583 
Amortization of intangible assets1,283 907 3,461 1,201 
Foreign currency loss (gain)380 (1,029)1,596 (3,577)
Net loss (gain) on disposal of fixed assets81 19 (283)74 
Other items(383)7 641 (138)
Total$3,604 $2,221 $12,272 $4,143 
v3.21.2
Restructuring
 9 Months Ended
Oct. 01, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
During 2020, the Company determined it would close its Large Area Coatings (LAC) business (a reporting unit in the Precision Optics segment). The closure was substantially completed by the end of the first quarter of 2021. Income of $0.4 million was recorded in the first quarter of 2021, primarily related to lower than previously estimated facility closure costs that were recorded in 2020.
Remaining severance payments are immaterial and reflected in Salaries and wages in the Consolidated Balance Sheet as of October 1, 2021. Any additional costs related to the closure of this business are expected to be immaterial.
In addition, during 2020, the Company initiated a restructuring plan in its Performance Alloys and Composites segment to close its Warren, Michigan and Fremont, California locations. Costs associated with the plan totaled $2.2 million and $6.8 million in the third quarter and first nine months of 2020, respectively. In the third quarter of 2020, these costs included $0.4 million of severance and $1.6 million of facility and other related costs. Included in restructuring charges for the first nine months of 2020 was $1.8 million of severance associated with approximately 60 employees and $4.4 million of facility and other related costs.
v3.21.2
Income Taxes
 9 Months Ended
Oct. 01, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's effective tax rate for the third quarter of 2021 and 2020 was 15.9% and 726.0%, respectively, and 16.1% and (421.2)% in the first nine months of 2021 and 2020, respectively. The effective tax rate for each period in 2021 was lower than the statutory tax rate primarily due to the impact of percentage depletion, research and development credits, and the foreign derived intangible income deduction. The effective tax rate for the third quarter of 2020 was higher than the statutory tax rate primarily due to the release of a significant valuation allowance, which generated a tax benefit on a loss for the period. The effective tax rate for the first nine months of 2020 was lower than the statutory tax rate primarily due to the release of a significant valuation allowance, which generated a tax benefit on income for the period. The effective tax rate for the first nine months of 2021 included a net discrete income tax benefit of $0.9 million, primarily related to excess tax benefits from stock-based compensation awards and return to provision adjustments recorded. The effective tax rate for the first nine months of 2020 included a net discrete income tax benefit of $3.8 million, primarily related to the release of a valuation allowance.

Given the Company’s recent history of foreign earnings, management believes that there is a reasonable possibility that, within the next twelve months, sufficient positive evidence may become available to allow management to reach a conclusion that a significant portion of the valuation allowance recorded against the deferred tax assets held by its German subsidiaries will be reversed. The reversal would result in an income tax benefit for the quarterly and annual period in which the Company releases the valuation allowance. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company actually achieves.

On March 11, 2021, President Biden signed the American Rescue Plan (the Rescue Plan) into law. The Rescue Plan, among other things, extends and enhances a number of current-law tax incentives for businesses. While the Company continues to examine the impacts the Rescue Plan may have on its business, it does not expect it will have a material impact to its consolidated financial statements.
v3.21.2
Earnings Per Share (EPS)
 9 Months Ended
Oct. 01, 2021
Earnings Per Share [Abstract]  
Earnings Per Share (EPS) Earnings Per Share (EPS)
The following table sets forth the computation of basic and diluted EPS:
Third Quarter EndedNine Months Ended
October 1,September 25,October 1,September 25,
(Thousands, except per share amounts)2021202020212020
Numerator for basic and diluted EPS:
Net income$18,156 $5,471 $52,791 $7,396 
Denominator:
Denominator for basic EPS:
Weighted-average shares outstanding20,439 20,325 20,414 20,342 
Effect of dilutive securities:
Stock appreciation rights72 46 73 39 
Restricted stock units94 77 113 90 
Performance-based restricted stock units52 144 59 124 
Diluted potential common shares218 267 245 253 
Denominator for diluted EPS:
Adjusted weighted-average shares outstanding20,657 20,592 20,659 20,595 
Basic EPS$0.89 $0.27 $2.59 $0.36 
Diluted EPS$0.88 $0.27 $2.56 $0.36 
Adjusted weighted-average shares outstanding - diluted exclude securities totaling 55,598 and 114,335 for the quarters ended October 1, 2021 and September 25, 2020, respectively and 56,319 and 164,447 for the nine months ended October 1, 2021 and September 25, 2020, respectively. These securities are primarily related to restricted stock units and stock appreciation rights with fair market values and exercise prices greater than the average market price of the Company's common shares and were excluded from the dilution calculation as the effect would have been anti-dilutive.
v3.21.2
Inventories
 9 Months Ended
Oct. 01, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories on the Consolidated Balance Sheets are summarized as follows:
October 1,December 31,
(Thousands)20212020
Raw materials and supplies$79,937 $42,905 
Work in process179,616 156,093 
Finished goods52,192 51,780 
Inventories, net$311,745 $250,778 
The Company maintains the majority of the precious metals and copper used in production on a consignment basis in order to reduce its exposure to metal price movements and to reduce its working capital investment. The notional value of off-balance sheet precious metals and copper was $452.9 million and $400.0 million as of October 1, 2021 and December 31, 2020, respectively. Amounts for the year ended December 31, 2020 have been revised to reflect a $44.6 million reclassification out of work in process and into finished goods inventory.
v3.21.2
Customer Prepayments
 9 Months Ended
Oct. 01, 2021
Customer Prepayments [Abstract]  
Customer Prepayments Customer PrepaymentsThe Company entered into investment and master supply agreements with a customer to procure equipment to manufacture product for the customer. The customer is providing prepayments to the Company in the amount of approximately $70 million in the aggregate to enable the Company to purchase and install certain equipment and make necessary infrastructure improvements to supply product to the customer. The Company will own the equipment and be responsible for operating and maintenance costs. The prepayment from the customer will be applied when commercial production of the product is sold and delivered to the customer in connection with a master supply agreement. Accordingly, as of October 1, 2021 and December 31, 2020, $67.9 million and $58.8 million, respectively, of prepayments were classified as Unearned income in the Consolidated Balance Sheet, of which $1.0 million and $9.0 million, respectively, was received during the third quarter and first nine months of 2021.
v3.21.2
Pensions and Other Post-employment Benefits
 9 Months Ended
Oct. 01, 2021
Retirement Benefits [Abstract]  
Pensions and Other Post-employment Benefits Pensions and Other Post-employment Benefits
The following is a summary of the net periodic benefit credit for the third quarter and first nine months of 2021 and 2020 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan.
 Pension BenefitsOther Benefits
 Third Quarter EndedThird Quarter Ended
October 1,September 25,October 1,September 25,
(Thousands)2021202020212020
Components of net periodic benefit (credit) cost
Service cost$— $— $20 $14 
Interest cost986 1,215 29 53 
Expected return on plan assets(2,234)(2,206)— — 
Amortization of prior service cost (benefit)— — (374)(374)
Amortization of net loss (gain)418 284 (69)(83)
Total net benefit (credit) cost$(830)$(707)$(394)$(390)
 Pension BenefitsOther Benefits
 Nine Months EndedNine Months Ended
October 1,September 25,October 1,September 25,
(Thousands)2021202020212020
Components of net periodic benefit (credit) cost
Service cost$— $— $60 $45 
Interest cost2,959 3,644 87 160 
Expected return on plan assets(6,702)(6,616)— — 
Amortization of prior service cost (benefit)— — (1,123)(1,123)
Amortization of net loss (gain)1,253 852 (206)(249)
Net periodic benefit (credit) cost$(2,490)$(2,120)$(1,182)$(1,167)
Settlements— 94 — — 
Total net benefit (credit) cost$(2,490)$(2,026)$(1,182)$(1,167)
The Company did not make any contributions to its domestic defined benefit plan in the third quarter or first nine months of 2021 or 2020.
The Company reports the service cost component of net periodic benefit credit in the same line item as other compensation costs in operating expenses and the non-service cost components of net periodic benefit credit in Other non-operating (income) expense.
In May 2019, the Company's Board of Directors approved changes to the U.S. defined benefit pension plan. The Company
froze the pay and service amounts used to calculate pension benefits for active participants in the pension plan as of January 1, 2020.
v3.21.2
Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Oct. 01, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the third quarter and first nine months of 2021 and 2020 are as follows:
Gains and Losses on Cash Flow Hedges
(Thousands)Foreign CurrencyPrecious MetalsCopperTotalPension and Post-Employment BenefitsForeign Currency TranslationTotal
Balance at July 2, 2021$1,603 $186 $— $1,789 $(43,226)$(1,647)$(43,084)
Other comprehensive income (loss) before reclassifications625 30 8 663 — (2,029)(1,366)
Amounts reclassified from accumulated other comprehensive income (loss)(2)(83)(8)(93)114 — 21 
Net current period other comprehensive (loss) income before tax623 (53)— 570 114 (2,029)(1,345)
Deferred taxes143 (12)— 131 (7)— 124 
Net current period other comprehensive (loss) income after tax480 (41)— 439 121 (2,029)(1,469)
Balance at October 1, 2021$2,083 $145 $— $2,228 $(43,105)$(3,676)$(44,553)
Balance at June 26, 2020$1,065 $(779)$104 $390 $(41,241)$(4,720)$(45,571)
Other comprehensive (loss) income before reclassifications(520)(617)182 (955)— 3,076 2,121 
Amounts reclassified from accumulated other comprehensive income (loss)191 710 (353)548 (11)— 537 
Net current period other comprehensive (loss) income before tax(329)93 (171)(407)(11)3,076 2,658 
Deferred taxes(76)22 (38)(92)(40)— (132)
Net current period other comprehensive (loss) income after tax(253)71 (133)(315)29 3,076 2,790 
Balance at September 25, 2020$812 $(708)$(29)$75 $(41,212)$(1,644)$(42,781)
Gains and Losses on Cash Flow Hedges
(Thousands)Foreign CurrencyPrecious MetalsCopperTotalPension and Post-Employment BenefitsForeign Currency TranslationTotal
Balance at December 31, 2020$519 $(170)$468 $817 $(43,473)$4,017 $(38,639)
Other comprehensive income (loss) before reclassifications1,893 532 2,444 4,869 — (7,693)(2,824)
Amounts reclassified from accumulated other comprehensive income (loss)138 (122)(3,049)(3,033)348 — (2,685)
Net current period other comprehensive (loss) income before tax2,031 410 (605)1,836 348 (7,693)(5,509)
Deferred taxes467 95 (137)425 (20)— 405 
Net current period other comprehensive (loss) income after tax1,564 315 (468)1,411 368 (7,693)(5,914)
Balance at October 1, 2021$2,083 $145 $— $2,228 $(43,105)$(3,676)$(44,553)
Balance at December 31, 2019$1,324 $(452)$25 $897 $(41,346)$(5,013)$(45,462)
Other comprehensive (loss) income before reclassifications(863)(1,851)(170)(2,884)— 3,369 485 
Amounts reclassified from accumulated other comprehensive income (loss)198 1,519 100 1,817 34 — 1,851 
Net current period other comprehensive (loss) income before tax(665)(332)(70)(1,067)34 3,369 2,336 
Deferred taxes(153)(76)(16)(245)(100)— (345)
Net current period other comprehensive (loss) income after tax(512)(256)(54)(822)134 3,369 2,681 
Balance at September 25, 2020$812 $(708)$(29)$75 $(41,212)$(1,644)$(42,781)
Reclassifications from accumulated other comprehensive income (loss) of gains and losses on foreign currency cash flow hedges are recorded in Net sales in the Consolidated Statements of Income. Reclassifications from accumulated other comprehensive income (loss) of gains and losses on precious metal and copper cash flow hedges are recorded in Cost of sales in the Consolidated Statements of Income. Refer to Note O for additional details on cash flow hedges.
Reclassifications from accumulated other comprehensive income (loss) for pension and post-employment benefits are included in the computation of the net periodic pension and post-employment benefit expense. Refer to Note K for additional details on pension and post-employment expenses.
v3.21.2
Stock-based Compensation Expense
 9 Months Ended
Oct. 01, 2021
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense Stock-based Compensation Expense
Stock-based compensation expense, which includes awards settled in shares and in cash, was $1.5 million and $5.3 million in the third quarter and first nine months of 2021, respectively, compared to less than $0.1 million and $4.1 million, respectively, in the same periods of 2020.
The Company granted 52,709 stock appreciation rights (SARs) to certain employees during the first nine months of 2021. The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the nine months ended October 1, 2021 were $68.82 and $20.66, respectively. The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model:
Risk-free interest rate0.57 %
Dividend yield0.7 %
Volatility37.6 %
Expected term (in years)4.6
The Company granted 59,818 stock-settled restricted stock units (RSUs) to certain employees and 9,904 to non-employee directors during the first nine months of 2021. The Company measures the fair value of stock-settled RSUs based on the closing market price of a share of Materion common stock on the date of the grant. The weighted-average fair value per share was $68.62 and $75.77 for stock-settled RSUs granted to employees and non-employee directors, respectively, during the nine months ended October 1, 2021. RSUs are generally expensed over the vesting period of three years for employees and one year for non-employee directors.
The Company granted stock-settled performance-based restricted stock units (PRSUs) to certain employees in the first nine months of 2021. The weighted-average fair value of the stock-settled PRSUs was $83.78 per share and will be expensed over the vesting period of three years. The final payout to the employees for all PRSUs will be based upon the Company’s return on invested capital and its total return to shareholders over the vesting period relative to a peer group’s performance over the same period.
At October 1, 2021, unamortized compensation cost related to the unvested portion of all stock-based awards was approximately $10.9 million, and is expected to be recognized over the remaining vesting period of the respective grants.
v3.21.2
Fair Value of Financial Instruments
 9 Months Ended
Oct. 01, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company measures and records financial instruments at fair value. A hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels:
Level 1 — Quoted market prices in active markets for identical assets and liabilities;
Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable; and
Level 3 — Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect
those that a market participant would use.
The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of October 1, 2021 and December 31, 2020: 
  
(Thousands)Total Carrying Value in the Consolidated Balance SheetsQuoted Prices
in  Active
Markets  for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
20212020202120202021202020212020
Financial Assets
Deferred compensation investments$3,994 $3,802 $3,994 $3,802 $— $— $— $— 
Foreign currency forward contracts1,800 107 — — 1,800 107 — — 
Precious metal swaps237 127 — — 237 127 — — 
Copper swaps— 632 — — — 632 — — 
Total$6,031 $4,668 $3,994 $3,802 $2,037 $866 $— $— 
Financial Liabilities
Deferred compensation liability$3,994 $3,802 $3,994 $3,802 $— $— $— $— 
Foreign currency forward contracts128 1,203 — — 128 1,203 — — 
Precious metal swaps49 349 — — 49 349 — — 
Copper swaps— 27 — — — 27 — — 
Total$4,171 $5,381 $3,994 $3,802 $177 $1,579 $— $— 
The Company uses a market approach to value the assets and liabilities for financial instruments in the table above. Outstanding contracts are valued through models that utilize market observable inputs, including both spot and forward prices, for the same underlying currencies and metals. The carrying values of the other working capital items and debt in the Consolidated Balance Sheets approximate fair values as of October 1, 2021 and December 31, 2020. 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.
v3.21.2
Derivative Instruments and Hedging Activity
 9 Months Ended
Oct. 01, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activity Derivative Instruments and Hedging Activity
The Company uses derivative contracts to hedge portions of its foreign currency exposures and uses derivatives to hedge a portion of its precious metal and copper exposures. The objectives and strategies for using derivatives in these areas are as follows:
Foreign Currency.    The Company sells a portion of its products to overseas customers in their local currencies, primarily the euro and yen. The Company secures foreign currency derivatives, mainly forward contracts and options, to hedge these anticipated sales transactions. The purpose of the hedge program is to protect against the reduction in the dollar value of foreign currency sales from adverse exchange rate movements. Should the dollar strengthen significantly, the decrease in the translated value of the foreign currency sales should be partially offset by gains on the hedge contracts. Depending upon the methods used, 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 from an adverse rate movement as well as any benefit from a favorable rate movement. The Company may from time to time choose to hedge with options or a tandem of options, known as a collar. These hedging techniques can limit or eliminate the downside risk but can allow for some or all of the benefit from a favorable rate movement to be realized. Unlike a forward contract, a premium is paid for an option; collars, which are a combination of a put and call option, may have a net premium but
can be structured to be cash neutral. The Company will primarily hedge with forward contracts due to the relationship between the cash outlay and the level of risk.
The use of foreign currency derivative contracts is governed by policies approved by the Audit Committee of the Board of Directors. A team consisting of senior financial managers reviews the estimated exposure levels, as defined by budgets, forecasts, and other internal data, and determines the timing, amounts, and instruments to use to hedge 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.
Precious Metals.    The Company maintains the majority of its precious metal production requirements on consignment in order to reduce its working capital investment and the exposure to metal price movements. When a precious metal product is fabricated and ready for shipment to the customer, the metal is purchased out of consignment at the current market price. The price paid by the Company forms the basis for the price charged to the customer. This methodology allows for changes in either direction in the market prices of the precious metals used by the Company to be passed through to the customer and reduces the impact changes in prices could have on the Company's margins and operating profit. The consigned metal is owned by financial institutions that charge the Company a financing fee based upon the current value of the metal on hand.
In certain instances, a customer may want to establish the price for the precious metal at the time the sales order is placed rather than at the time of shipment. Setting the sales price at a different date than when the material would be purchased potentially creates an exposure to movements in the market price of the metal. Therefore, in these limited situations, the Company may elect to enter into a forward contract to purchase precious metal. The forward contract allows the Company to purchase metal at a fixed price on a specific future date. The price in the forward contract serves as the basis for the price to be charged to the customer. By doing so, the selling price and purchase price are matched, and the Company's price exposure is reduced.
The Company refines precious metal-containing materials for its customers and typically will purchase the refined metal from the customer at current market prices. In limited circumstances, the customer may want to fix the price to be paid at the time of the order as opposed to when the material is refined. The customer may also want to fix the price for a set period of time. The Company may then elect to enter into a hedge contract, either a forward contract or a swap, to fix the price for the estimated quantity of metal to be purchased, thereby reducing the exposure to adverse movements in the price of the metal. The Company may also enter into hedges to mitigate the risk relating to the prices of the metals which 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.
The Company may from time to time elect to purchase precious metal and hold in inventory rather than on consignment due to potential credit line limitations or other factors. These purchases are typically held for a short duration. A forward contract will be secured at the time of the purchase to fix the price to be used when the metal is transferred back to the consignment line, thereby limiting any price exposure during the time when the metal was owned.
Copper. 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.
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 other comprehensive income (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 October 1, 2021 and December 31, 2020:
 October 1, 2021December 31, 2020
(Thousands)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Foreign currency forward contracts
Prepaid expenses$58,289 $914 $62,012 $107 
Other liabilities and accrued items17,735 125 7,695 55 
These outstanding foreign currency derivatives were related to balance sheet hedges and intercompany loans. Other-net included $0.7 million of foreign currency gains in the third quarter of 2021 and $0.5 million of foreign currency losses related to derivatives in the first nine months of 2021, compared to $0.4 million and $2.7 million of foreign currency gains in the third quarter and first nine months of 2020, respectively.
The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of October 1, 2021 and December 31, 2020:
 October 1, 2021December 31, 2020
(Thousands)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Prepaid expenses
Foreign currency forward contracts - yen$4,786 $109 $— $— 
Foreign currency forward contracts - euro27,028 720 — — 
Precious metal swaps4,447 225 2,155 127 
Copper swaps— — 6,225 632 
Total36,261 1,054 8,380 759 
Other assets
Foreign currency forward contracts - yen327 1 — — 
Foreign currency forward contracts - euro3,567 56 — — 
Precious metal swaps541 12 — — 
Total4,435 69 — — 
Other liabilities and accrued items
Foreign currency forward contracts - yen606 3 2,668 59 
Foreign currency forward contracts - euro— — 17,611 1,089 
Precious metal swaps870 49 4,964 349 
Copper swaps— — 2,445 27 
Total1,476 52 27,688 1,524 
Total$42,172 $1,071 $36,068 $765 
All of these contracts were designated and effective as cash flow hedges. The Company expects to relieve substantially the entire balance in OCI as of October 1, 2021 to the Consolidated Statements of Income within the next 15-months. Refer to Note L for additional OCI details.
The following table summarizes the pre-tax amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification as of the third quarter and first nine months of 2021 and 2020: 
 Third Quarter Ended
(Thousands)October 2, 2021September 25, 2020
Hedging relationshipLine item
Foreign currency forward contractsNet sales$(2)$191 
Precious metal swapsCost of sales(83)710 
Copper swapsCost of sales(8)(353)
Total$(93)$548 
 Nine Months Ended
(Thousands)October 1, 2021September 25, 2020
Hedging relationshipLine item
Foreign currency forward contractsNet sales$138 $198 
Precious metal swapsCost of sales(122)1,519 
Copper swapsCost of sales(3,049)100 
Total$(3,033)$1,817 
v3.21.2
Contingencies
 9 Months Ended
Oct. 01, 2021
Loss Contingency [Abstract]  
Contingencies Contingencies
Legal Proceedings. For general information regarding legal proceedings relating to Chronic Beryllium Disease Claims, refer to Note T ("Contingencies and Commitments") in the Company's 2020 Annual Report on Form 10-K.
Two beryllium cases were outstanding as of October 1, 2021. The Company does not expect the resolution of these matters to have a material impact on the consolidated financial statements.
Other Litigation. The Company is party to several pending legal proceedings and claims arising in the normal course of business. The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matters. To the extent there is a reasonable possibility that the losses could exceed any amounts accrued, the Company will adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made.
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, among other things, that he and other similarly situated employees nationwide 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. The case is currently in the preliminary stages. The Company believes that it has substantive defenses and intends to vigorously defend this suit.
Environmental Proceedings. The Company has an active environmental compliance program and records reserves for the probable cost of identified environmental remediation projects. The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the
difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies. The undiscounted reserve balance was $4.9 million and $5.5 million at October 1, 2021 and December 31, 2020, respectively, and is included in Other liabilities and accrued items and Other long-term liabilities on the Consolidated Balance Sheet. Environmental projects tend to be long-term, and the final actual remediation costs may differ from the amounts currently recorded.
v3.21.2
Debt
 9 Months Ended
Oct. 01, 2021
Debt Disclosure [Abstract]  
Debt Debt
(Thousands)October 1, 2021December 31, 2020
Borrowings under Credit Agreement $77,010 $34,000 
Foreign debt2,555 3,157 
Fixed rate industrial development revenue bonds— 1,322 
Total debt outstanding79,565 38,479 
Current portion of long-term debt(529)(1,937)
Long-term debt$79,036 $36,542 

As of October 1, 2021 and December 31, 2020, the Company had $77.0 million and $34.0 million, respectively, outstanding against its revolving credit facility (Credit Agreement) with average interest rates of 1.51% and 1.65% at October 1, 2021 and December 31, 2020, respectively. The remaining borrowing capacity under the revolving credit facility as of October 1, 2021 and December 31, 2020 was $319.4 million and $245.8 million, respectively. The Company has the option to repay or borrow additional funds under the revolving credit facility until the maturity date in 2024. The Credit Agreement includes covenants subject to a maximum leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all of its debt covenants as of October 1, 2021.

At October 1, 2021 and December 31, 2020, there was $47.3 million and $48.1 million outstanding against the letters of credit sub-facility, respectively.
v3.21.2
Subsequent Event
 9 Months Ended
Oct. 01, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventOn September 19, 2021, the Company entered into a definitive agreement under which it has agreed to acquire the industry-leading electronic materials business of H.C. Starck (HCS) for a purchase price of approximately $380 million in cash, on a cash-free, debt-free basis, subject to a customary purchase price adjustment mechanism. Acquisition-related transaction and integration costs totaled $5.3 million in the third quarter of 2021. These costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income. On November 1, 2021, the Company completed the acquisition. The Company financed the purchase price for the HCS 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. The interest rate for the term loan is based on LIBOR plus a tiered rate determined by the Company's quarterly leverage ratio.
v3.21.2
Accounting Policies (Policies)
 9 Months Ended
Oct. 01, 2021
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation: The accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. Certain amounts in prior periods have been reclassified to conform to the 2021 consolidated financial statement presentation.These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2020 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year.
Business Combinations Business Combinations: The Company records assets acquired and liabilities assumed at the date of acquisition at their respective fair values. Any 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.
Change in Accounting Principle Change in Accounting Principle: During the fourth quarter of 2020, the Company elected to change its method for valuing its inventories at locations that previously used the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method. The Company believes that the FIFO method is preferable as it improves comparability with its most similar peers, it more closely resembles the physical flow of its inventory (i.e., it provides better matching of revenues and expenses), and it results in uniformity across a significant majority of the Company’s inventory. The effects of the change in accounting principle from LIFO to FIFO were retrospectively applied. As a result of the retrospective application of the change in accounting principle, certain financial statement line items in the Company’s consolidated balance sheet as of September 25, 2020 and the consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for the three and nine months ended September 25, 2020 were adjusted as necessary. For further information, refer to the Company's 2020 Annual Report on Form 10-K.
New Pronouncements Adopted/New Accounting Guidance Issued and Not Yet Adopted
New Pronouncements Adopted: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted the standard on January 1, 2021. The adoption did not materially impact the Company's financial statements or disclosures.

New Accounting Guidance Issued and Not Yet Adopted: 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. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently assessing which of its various contracts will require an update for a new reference rate, and will determine the timing for implementation of this guidance at the completion of that analysis.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. Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at October 1, 2021. Remaining performance obligations include non-cancelable purchase orders and customer contracts. The guidance provides certain practical expedients that limit this requirement. As such, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
v3.21.2
Accounting Policies (Tables)
 9 Months Ended
Oct. 01, 2021
Accounting Policies [Abstract]  
Accounting Standards Update and Change in Accounting Principle
The following tables reflect the impact to the financial statement line items as a result of the change in accounting principle for the prior periods presented in the accompanying financial statements:

Consolidated Statement of Income

(Thousands except per share amounts)
Third Quarter EndedNine Months Ended
September 25, 2020September 25, 2020
Selected ItemsAs ReportedAs AdjustedAdjustmentAs ReportedAs AdjustedAdjustment
Cost of sales$240,531 $241,860 $1,329 $696,280 $699,749 $3,469 
Gross margin46,640 45,311 (1,329)140,305 136,836 (3,469)
Operating profit (loss)713 (616)(1,329)4,856 1,387 (3,469)
Income (Loss) before income taxes455 (874)(1,329)4,888 1,419 (3,469)
Income tax benefit(6,041)(6,345)(304)(5,183)(5,977)(794)
Net income6,496 5,471 (1,025)10,071 7,396 (2,675)
Basic earnings per share:
Net income per share of common stock$0.32 $0.27 $(0.05)$0.50 $0.36 $(0.14)
Diluted earnings per share:
Net income per share of common stock$0.32 $0.27 $(0.05)$0.49 $0.36 $(0.13)

Consolidated Statement of Comprehensive Income
(Thousands)
Third Quarter EndedNine Months Ended
September 25, 2020September 25, 2020
Selected ItemsAs ReportedAs AdjustedAdjustmentAs ReportedAs AdjustedAdjustment
Net income$6,496 $5,471 $(1,025)$10,071 $7,396 $(2,675)
Comprehensive income9,286 8,261 (1,025)12,752 10,077 (2,675)

Consolidated Statement of Cash Flows
(Thousands)
Nine Months Ended
September 25, 2020
Selected ItemsAs ReportedAs AdjustedAdjustment
Net income$10,071 $7,396 $(2,675)
Deferred income tax benefit(5,187)(5,981)(794)
Increase in inventory(9,883)(6,414)3,469 
v3.21.2
Segment Reporting (Tables)
 9 Months Ended
Oct. 01, 2021
Segment Reporting [Abstract]  
Segment Reporting
(Thousands)Performance
Alloys and
Composites		Advanced MaterialsPrecision OpticsOtherTotal
Third Quarter 2021
Net sales$136,096 $220,723 $31,209 $— $388,028 
Intersegment sales
32 3,036 — — 3,068 
Operating profit (loss)20,928 9,281 3,329 (12,378)21,160 
Third Quarter 2020
Net sales$91,203 $165,582 $30,386 $— $287,171 
Intersegment sales— 6,602 ——6,602 
Operating (loss) profit(437)5,749 1,421 (7,349)(616)
First Nine Months 2021
Net sales$375,533 $638,481 $99,399 $— $1,113,413 
Intersegment sales
47 8,908 — — 8,955 
Operating profit (loss)51,733 26,547 10,513 (27,192)61,601 
First Nine Months 2020
Net sales$291,884 $475,855 $68,846 $— $836,585 
Intersegment sales2 24,790 ——24,792 
Operating profit (loss)9,910 15,452 (6,080)(17,895)1,387 
Disaggregation of Revenue
The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2021 and 2020:
 (Thousands)Performance Alloys and CompositesAdvanced MaterialsPrecision OpticsOtherTotal
Third Quarter 2021
End Market
Semiconductor$3,163 $173,689 $630 $— $177,482 
Industrial31,521 10,479 8,296 — 50,296 
Aerospace and defense19,129 1,622 5,652 — 26,403 
Consumer electronics9,717 530 7,788 — 18,035 
Automotive28,922 1,719 2,571 — 33,212 
Energy7,524 27,081 — — 34,605 
Telecom and data center14,980 31 — — 15,011 
Other21,140 5,572 6,272 — 32,984 
Total$136,096 $220,723 $31,209 $— $388,028 
Third Quarter 2020
End Market
Semiconductor$983 $131,380 $1,008 $— $133,371 
Industrial21,630 9,967 4,976 — 36,573 
Aerospace and defense14,740 1,687 4,867 — 21,294 
Consumer electronics11,074 78 6,550 — 17,702 
Automotive14,077 1,477 1,059 — 16,613 
Energy5,825 16,693 — — 22,518 
Telecom and data center10,452 500 — — 10,952 
Other12,422 3,800 11,926 — 28,148 
Total$91,203 $165,582 $30,386 $— $287,171 
 (Thousands)Performance Alloys and CompositesAdvanced MaterialsPrecision OpticsOtherTotal
First Nine Months 2021
End Market
Semiconductor$5,966 $495,718 $1,664 $— $503,348 
Industrial85,815 33,756 23,305 — 142,876 
Aerospace and defense60,221 4,680 17,825 — 82,726 
Consumer electronics30,483 961 24,212 — 55,656 
Automotive78,195 5,145 6,871 — 90,211 
Energy16,541 78,487 — — 95,028 
Telecom and data center39,348 140 — — 39,488 
Other58,964 19,594 25,522 — 104,080 
Total$375,533 $638,481 $99,399 $— $1,113,413 
First Nine Months 2020
End Market
Semiconductor$3,426 $376,107 $1,251 $— $380,784 
Industrial68,801 26,748 10,647 — 106,196 
Aerospace and defense46,898 4,764 14,095 — 65,757 
Consumer electronics35,725 216 13,496 — 49,437 
Automotive48,656 4,743 1,083 — 54,482 
Energy16,844 49,488 — — 66,332 
Telecom and data center33,027 2,158 — — 35,185 
Other38,507 11,631 28,274 — 78,412 
Total$291,884 $475,855 $68,846 $— $836,585 
v3.21.2
Revenue Recognition (Tables)
 9 Months Ended
Oct. 01, 2021
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability The timing of revenue recognition, billings, and cash collections resulted in the following contract assets and contract liabilities:
(Thousands)October 1, 2021December 31, 2020$ change% change
Accounts receivable, trade
$176,766 $156,821 $19,945 13 %
Unbilled receivables
12,450 8,832 3,618 41 %
Unearned revenue
8,308 7,713 595 8 %
v3.21.2
Other-net (Tables)
 9 Months Ended
Oct. 01, 2021
Other Income and Expenses [Abstract]  
Summary of Other-Net Expense
Other-net for the third quarter and first nine months of 2021 and 2020 is summarized as follows: 
 Third Quarter EndedNine Months Ended
 October 1,September 25,October 1,September 25,
(Thousands)2021202020212020
Metal consignment fees$2,243 $2,317 $6,857 $6,583 
Amortization of intangible assets1,283 907 3,461 1,201 
Foreign currency loss (gain)380 (1,029)1,596 (3,577)
Net loss (gain) on disposal of fixed assets81 19 (283)74 
Other items(383)7 641 (138)
Total$3,604 $2,221 $12,272 $4,143 
v3.21.2
Earnings Per Share (EPS) (Tables)
 9 Months Ended
Oct. 01, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted EPS:
Third Quarter EndedNine Months Ended
October 1,September 25,October 1,September 25,
(Thousands, except per share amounts)2021202020212020
Numerator for basic and diluted EPS:
Net income$18,156 $5,471 $52,791 $7,396 
Denominator:
Denominator for basic EPS:
Weighted-average shares outstanding20,439 20,325 20,414 20,342 
Effect of dilutive securities:
Stock appreciation rights72 46 73 39 
Restricted stock units94 77 113 90 
Performance-based restricted stock units52 144 59 124 
Diluted potential common shares218 267 245 253 
Denominator for diluted EPS:
Adjusted weighted-average shares outstanding20,657 20,592 20,659 20,595 
Basic EPS$0.89 $0.27 $2.59 $0.36 
Diluted EPS$0.88 $0.27 $2.56 $0.36 
v3.21.2
Inventories (Tables)
 9 Months Ended
Oct. 01, 2021
Inventory Disclosure [Abstract]  
Summary of Inventories
Inventories on the Consolidated Balance Sheets are summarized as follows:
October 1,December 31,
(Thousands)20212020
Raw materials and supplies$79,937 $42,905 
Work in process179,616 156,093 
Finished goods52,192 51,780 
Inventories, net$311,745 $250,778 
v3.21.2
Pensions and Other Post-employment Benefits (Tables)
 9 Months Ended
Oct. 01, 2021
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
The following is a summary of the net periodic benefit credit for the third quarter and first nine months of 2021 and 2020 for the domestic pension plans (which include the defined benefit pension plan and the supplemental retirement plans) and the domestic retiree medical plan.
 Pension BenefitsOther Benefits
 Third Quarter EndedThird Quarter Ended
October 1,September 25,October 1,September 25,
(Thousands)2021202020212020
Components of net periodic benefit (credit) cost
Service cost$— $— $20 $14 
Interest cost986 1,215 29 53 
Expected return on plan assets(2,234)(2,206)— — 
Amortization of prior service cost (benefit)— — (374)(374)
Amortization of net loss (gain)418 284 (69)(83)
Total net benefit (credit) cost$(830)$(707)$(394)$(390)
 Pension BenefitsOther Benefits
 Nine Months EndedNine Months Ended
October 1,September 25,October 1,September 25,
(Thousands)2021202020212020
Components of net periodic benefit (credit) cost
Service cost$— $— $60 $45 
Interest cost2,959 3,644 87 160 
Expected return on plan assets(6,702)(6,616)— — 
Amortization of prior service cost (benefit)— — (1,123)(1,123)
Amortization of net loss (gain)1,253 852 (206)(249)
Net periodic benefit (credit) cost$(2,490)$(2,120)$(1,182)$(1,167)
Settlements— 94 — — 
Total net benefit (credit) cost$(2,490)$(2,026)$(1,182)$(1,167)
v3.21.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Oct. 01, 2021
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income, including the amounts reclassified, for the third quarter and first nine months of 2021 and 2020 are as follows:
Gains and Losses on Cash Flow Hedges
(Thousands)Foreign CurrencyPrecious MetalsCopperTotalPension and Post-Employment BenefitsForeign Currency TranslationTotal
Balance at July 2, 2021$1,603 $186 $— $1,789 $(43,226)$(1,647)$(43,084)
Other comprehensive income (loss) before reclassifications625 30 8 663 — (2,029)(1,366)
Amounts reclassified from accumulated other comprehensive income (loss)(2)(83)(8)(93)114 — 21 
Net current period other comprehensive (loss) income before tax623 (53)— 570 114 (2,029)(1,345)
Deferred taxes143 (12)— 131 (7)— 124 
Net current period other comprehensive (loss) income after tax480 (41)— 439 121 (2,029)(1,469)
Balance at October 1, 2021$2,083 $145 $— $2,228 $(43,105)$(3,676)$(44,553)
Balance at June 26, 2020$1,065 $(779)$104 $390 $(41,241)$(4,720)$(45,571)
Other comprehensive (loss) income before reclassifications(520)(617)182 (955)— 3,076 2,121 
Amounts reclassified from accumulated other comprehensive income (loss)191 710 (353)548 (11)— 537 
Net current period other comprehensive (loss) income before tax(329)93 (171)(407)(11)3,076 2,658 
Deferred taxes(76)22 (38)(92)(40)— (132)
Net current period other comprehensive (loss) income after tax(253)71 (133)(315)29 3,076 2,790 
Balance at September 25, 2020$812 $(708)$(29)$75 $(41,212)$(1,644)$(42,781)
Gains and Losses on Cash Flow Hedges
(Thousands)Foreign CurrencyPrecious MetalsCopperTotalPension and Post-Employment BenefitsForeign Currency TranslationTotal
Balance at December 31, 2020$519 $(170)$468 $817 $(43,473)$4,017 $(38,639)
Other comprehensive income (loss) before reclassifications1,893 532 2,444 4,869 — (7,693)(2,824)
Amounts reclassified from accumulated other comprehensive income (loss)138 (122)(3,049)(3,033)348 — (2,685)
Net current period other comprehensive (loss) income before tax2,031 410 (605)1,836 348 (7,693)(5,509)
Deferred taxes467 95 (137)425 (20)— 405 
Net current period other comprehensive (loss) income after tax1,564 315 (468)1,411 368 (7,693)(5,914)
Balance at October 1, 2021$2,083 $145 $— $2,228 $(43,105)$(3,676)$(44,553)
Balance at December 31, 2019$1,324 $(452)$25 $897 $(41,346)$(5,013)$(45,462)
Other comprehensive (loss) income before reclassifications(863)(1,851)(170)(2,884)— 3,369 485 
Amounts reclassified from accumulated other comprehensive income (loss)198 1,519 100 1,817 34 — 1,851 
Net current period other comprehensive (loss) income before tax(665)(332)(70)(1,067)34 3,369 2,336 
Deferred taxes(153)(76)(16)(245)(100)— (345)
Net current period other comprehensive (loss) income after tax(512)(256)(54)(822)134 3,369 2,681 
Balance at September 25, 2020$812 $(708)$(29)$75 $(41,212)$(1,644)$(42,781)
v3.21.2
Stock-based Compensation Expense Tables (Tables)
 9 Months Ended
Oct. 01, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Weighted-average Assumptions Black-Scholes Model The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model:
Risk-free interest rate0.57 %
Dividend yield0.7 %
Volatility37.6 %
Expected term (in years)4.6
v3.21.2
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Oct. 01, 2021
Fair Value Disclosures [Abstract]  
Summary of Fair Value Information and Derivative Financial Instruments
The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of October 1, 2021 and December 31, 2020: 
  
(Thousands)Total Carrying Value in the Consolidated Balance SheetsQuoted Prices
in  Active
Markets  for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
20212020202120202021202020212020
Financial Assets
Deferred compensation investments$3,994 $3,802 $3,994 $3,802 $— $— $— $— 
Foreign currency forward contracts1,800 107 — — 1,800 107 — — 
Precious metal swaps237 127 — — 237 127 — — 
Copper swaps— 632 — — — 632 — — 
Total$6,031 $4,668 $3,994 $3,802 $2,037 $866 $— $— 
Financial Liabilities
Deferred compensation liability$3,994 $3,802 $3,994 $3,802 $— $— $— $— 
Foreign currency forward contracts128 1,203 — — 128 1,203 — — 
Precious metal swaps49 349 — — 49 349 — — 
Copper swaps— 27 — — — 27 — — 
Total$4,171 $5,381 $3,994 $3,802 $177 $1,579 $— $— 
v3.21.2
Derivative Instruments and Hedging Activity Tables (Tables)
 9 Months Ended
Oct. 01, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Non Hedging
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 October 1, 2021 and December 31, 2020:
 October 1, 2021December 31, 2020
(Thousands)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Foreign currency forward contracts
Prepaid expenses$58,289 $914 $62,012 $107 
Other liabilities and accrued items17,735 125 7,695 55 
Fair Value Measurements, Recurring and Nonrecurring
The following table summarizes the notional amount and the fair value of the Company’s outstanding derivatives designated as cash flow hedges (on a gross basis) and balance sheet classification as of October 1, 2021 and December 31, 2020:
 October 1, 2021December 31, 2020
(Thousands)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Prepaid expenses
Foreign currency forward contracts - yen$4,786 $109 $— $— 
Foreign currency forward contracts - euro27,028 720 — — 
Precious metal swaps4,447 225 2,155 127 
Copper swaps— — 6,225 632 
Total36,261 1,054 8,380 759 
Other assets
Foreign currency forward contracts - yen327 1 — — 
Foreign currency forward contracts - euro3,567 56 — — 
Precious metal swaps541 12 — — 
Total4,435 69 — — 
Other liabilities and accrued items
Foreign currency forward contracts - yen606 3 2,668 59 
Foreign currency forward contracts - euro— — 17,611 1,089 
Precious metal swaps870 49 4,964 349 
Copper swaps— — 2,445 27 
Total1,476 52 27,688 1,524 
Total$42,172 $1,071 $36,068 $765 
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table summarizes the pre-tax amounts reclassified from accumulated other comprehensive income relating to the hedging relationship of the Company’s outstanding derivatives designated as cash flow hedges and income statement classification as of the third quarter and first nine months of 2021 and 2020: 
 Third Quarter Ended
(Thousands)October 2, 2021September 25, 2020
Hedging relationshipLine item
Foreign currency forward contractsNet sales$(2)$191 
Precious metal swapsCost of sales(83)710 
Copper swapsCost of sales(8)(353)
Total$(93)$548 
 Nine Months Ended
(Thousands)October 1, 2021September 25, 2020
Hedging relationshipLine item
Foreign currency forward contractsNet sales$138 $198 
Precious metal swapsCost of sales(122)1,519 
Copper swapsCost of sales(3,049)100 
Total$(3,033)$1,817 
v3.21.2
Debt (Tables)
 9 Months Ended
Oct. 01, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
(Thousands)October 1, 2021December 31, 2020
Borrowings under Credit Agreement $77,010 $34,000 
Foreign debt2,555 3,157 
Fixed rate industrial development revenue bonds— 1,322 
Total debt outstanding79,565 38,479 
Current portion of long-term debt(529)(1,937)
Long-term debt$79,036 $36,542 
v3.21.2
Accounting Policies (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Accounting Policies [Line Items]        
Cost of sales $ 313,715 $ 241,860 [1] $ 902,723 $ 699,749 [1]
Gross margin 74,313 45,311 [1] 210,690 136,836 [1]
Operating profit (loss) 21,160 (616) [1] 61,601 1,387 [1]
Income (Loss) before income taxes 21,578 (874) [1] 62,953 1,419 [1]
Income tax benefit 3,422 (6,345) [1] 10,162 (5,977) [1]
Net income 18,156 [1] 5,471 [2] 52,791 [1] 7,396 [2],[3]
Comprehensive income $ 16,687 $ 8,261 [2] 46,877 10,077 [2]
Deferred income tax benefit       (5,981)
Increase in inventory     $ (62,353) $ (6,414) [3]
Basic earnings per share:        
Net income per share of common stock (in dollars per share) $ 0.89 $ 0.27 [1] $ 2.59 $ 0.36 [1]
Diluted earnings per share:        
Net income per share of common stock (in dollars per share) $ 0.88 $ 0.27 [1] $ 2.56 $ 0.36 [1]
As Reported        
Accounting Policies [Line Items]        
Net income       $ 10,071
Deferred income tax benefit       (5,187)
Increase in inventory       (9,883)
Adjustment        
Accounting Policies [Line Items]        
Net income       (2,675)
Deferred income tax benefit       (794)
Increase in inventory       3,469
As Reported        
Accounting Policies [Line Items]        
Net income   $ 6,496   10,071
Comprehensive income   9,286   12,752
Adjustment        
Accounting Policies [Line Items]        
Net income   (1,025)   (2,675)
Comprehensive income   (1,025)   (2,675)
As Reported        
Accounting Policies [Line Items]        
Cost of sales   240,531   696,280
Gross margin   46,640   140,305
Operating profit (loss)   713   4,856
Income (Loss) before income taxes   455   4,888
Income tax benefit   (6,041)   (5,183)
Net income   $ 6,496   $ 10,071
Basic earnings per share:        
Net income per share of common stock (in dollars per share)   $ 0.32   $ 0.50
Diluted earnings per share:        
Net income per share of common stock (in dollars per share)   $ 0.32   $ 0.49
Adjustment        
Accounting Policies [Line Items]        
Cost of sales   $ 1,329   $ 3,469
Gross margin   (1,329)   (3,469)
Operating profit (loss)   (1,329)   (3,469)
Income (Loss) before income taxes   (1,329)   (3,469)
Income tax benefit   (304)   (794)
Net income   $ (1,025)   $ (2,675)
Basic earnings per share:        
Net income per share of common stock (in dollars per share)   $ (0.05)   $ (0.14)
Diluted earnings per share:        
Net income per share of common stock (in dollars per share)   $ (0.05)   $ (0.13)
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[2] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[3] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Acquisition (Details) - USD ($)
 9 Months Ended
Jul. 17, 2020
Oct. 01, 2021
Dec. 31, 2020
Business Combinations [Abstract]      
Long-term debt $ 22,500,000    
Material measurement period adjustment   $ 0  
Business Acquisition [Line Items]      
Goodwill   $ 140,990,000 $ 144,916,000
Optics Balzers      
Business Acquisition [Line Items]      
Purchase price 136,100,000    
Goodwill 70,800,000    
Intangible assets $ 49,300,000    
v3.21.2
Segment Reporting - Reporting Segment (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Segment Reporting Information        
Net sales $ 388,028 $ 287,171 [1] $ 1,113,413 $ 836,585 [1]
Intersegment sales 3,068 6,602 8,955 24,792
Operating profit (loss) 21,160 (616) [1] 61,601 1,387 [1]
Performance Alloys and Composites        
Segment Reporting Information        
Net sales 136,096 91,203 375,533 291,884
Intersegment sales 32 0 47 2
Operating profit (loss) 20,928 (437) 51,733 9,910
Advanced Materials        
Segment Reporting Information        
Net sales 220,723 165,582 638,481 475,855
Intersegment sales 3,036 6,602 8,908 24,790
Operating profit (loss) 9,281 5,749 26,547 15,452
Precision Optics        
Segment Reporting Information        
Net sales 31,209 30,386 99,399 68,846
Intersegment sales 0 0 0 0
Operating profit (loss) 3,329 1,421 10,513 (6,080)
Other        
Segment Reporting Information        
Net sales 0 0 0 0
Intersegment sales 0 0 0 0
Operating profit (loss) $ (12,378) $ (7,349) $ (27,192) $ (17,895)
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Segment Reporting - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Disaggregation of Revenue [Line Items]        
Net sales $ 388,028 $ 287,171 [1] $ 1,113,413 $ 836,585 [1]
Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 177,482 133,371 503,348 380,784
Industrial        
Disaggregation of Revenue [Line Items]        
Net sales 50,296 36,573 142,876 106,196
Aerospace and defense        
Disaggregation of Revenue [Line Items]        
Net sales 26,403 21,294 82,726 65,757
Consumer electronics        
Disaggregation of Revenue [Line Items]        
Net sales 18,035 17,702 55,656 49,437
Automotive        
Disaggregation of Revenue [Line Items]        
Net sales 33,212 16,613 90,211 54,482
Energy        
Disaggregation of Revenue [Line Items]        
Net sales 34,605 22,518 95,028 66,332
Telecom and data center        
Disaggregation of Revenue [Line Items]        
Net sales 15,011 10,952 39,488 35,185
Other        
Disaggregation of Revenue [Line Items]        
Net sales 32,984 28,148 104,080 78,412
Performance Alloys and Composites        
Disaggregation of Revenue [Line Items]        
Net sales 136,096 91,203 375,533 291,884
Performance Alloys and Composites | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 3,163 983 5,966 3,426
Performance Alloys and Composites | Industrial        
Disaggregation of Revenue [Line Items]        
Net sales 31,521 21,630 85,815 68,801
Performance Alloys and Composites | Aerospace and defense        
Disaggregation of Revenue [Line Items]        
Net sales 19,129 14,740 60,221 46,898
Performance Alloys and Composites | Consumer electronics        
Disaggregation of Revenue [Line Items]        
Net sales 9,717 11,074 30,483 35,725
Performance Alloys and Composites | Automotive        
Disaggregation of Revenue [Line Items]        
Net sales 28,922 14,077 78,195 48,656
Performance Alloys and Composites | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 7,524 5,825 16,541 16,844
Performance Alloys and Composites | Telecom and data center        
Disaggregation of Revenue [Line Items]        
Net sales 14,980 10,452 39,348 33,027
Performance Alloys and Composites | Other        
Disaggregation of Revenue [Line Items]        
Net sales 21,140 12,422 58,964 38,507
Advanced Materials        
Disaggregation of Revenue [Line Items]        
Net sales 220,723 165,582 638,481 475,855
Advanced Materials | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 173,689 131,380 495,718 376,107
Advanced Materials | Industrial        
Disaggregation of Revenue [Line Items]        
Net sales 10,479 9,967 33,756 26,748
Advanced Materials | Aerospace and defense        
Disaggregation of Revenue [Line Items]        
Net sales 1,622 1,687 4,680 4,764
Advanced Materials | Consumer electronics        
Disaggregation of Revenue [Line Items]        
Net sales 530 78 961 216
Advanced Materials | Automotive        
Disaggregation of Revenue [Line Items]        
Net sales 1,719 1,477 5,145 4,743
Advanced Materials | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 27,081 16,693 78,487 49,488
Advanced Materials | Telecom and data center        
Disaggregation of Revenue [Line Items]        
Net sales 31 500 140 2,158
Advanced Materials | Other        
Disaggregation of Revenue [Line Items]        
Net sales 5,572 3,800 19,594 11,631
Precision Optics        
Disaggregation of Revenue [Line Items]        
Net sales 31,209 30,386 99,399 68,846
Precision Optics | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 630 1,008 1,664 1,251
Precision Optics | Industrial        
Disaggregation of Revenue [Line Items]        
Net sales 8,296 4,976 23,305 10,647
Precision Optics | Aerospace and defense        
Disaggregation of Revenue [Line Items]        
Net sales 5,652 4,867 17,825 14,095
Precision Optics | Consumer electronics        
Disaggregation of Revenue [Line Items]        
Net sales 7,788 6,550 24,212 13,496
Precision Optics | Automotive        
Disaggregation of Revenue [Line Items]        
Net sales 2,571 1,059 6,871 1,083
Precision Optics | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Precision Optics | Telecom and data center        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Precision Optics | Other        
Disaggregation of Revenue [Line Items]        
Net sales 6,272 11,926 25,522 28,274
Other        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Semiconductor        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Industrial        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Aerospace and defense        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Consumer electronics        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Automotive        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Energy        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Telecom and data center        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Other | Other        
Disaggregation of Revenue [Line Items]        
Net sales $ 0 $ 0 $ 0 $ 0
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Oct. 01, 2021
Revenue from Contract with Customer [Abstract]    
Remaining performance obligation   $ 81.0
Revenue recognized $ 5.6  
v3.21.2
Revenue Recognition (Details) - USD ($)
$ in Thousands
 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
 [1]
Dec. 31, 2020
Capitalized Contract Cost [Line Items]      
Change, Short term unearned revenue $ 650 $ (298)  
Accounts receivable, trade      
Capitalized Contract Cost [Line Items]      
Accounts receivable, trade 176,766   $ 156,821
Change, Accounts receivable, trade $ 19,945    
Change, Accounts receivable, trade/ Unbilled receivables, percent 13.00%    
Unbilled receivables      
Capitalized Contract Cost [Line Items]      
Unbilled receivables $ 12,450   8,832
Change, Unbilled receivables $ 3,618    
Change, Accounts receivable, trade/ Unbilled receivables, percent 41.00%    
Unearned revenue      
Capitalized Contract Cost [Line Items]      
Unearned revenue $ 8,308   $ 7,713
Change, Short term unearned revenue $ 595    
Change, Short term unearned revenue, percent 8.00%    
[1] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Other-net (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Other Income and Expenses [Abstract]        
Metal consignment fees $ 2,243 $ 2,317 $ 6,857 $ 6,583
Amortization of intangible assets 1,283 907 3,461 1,201
Foreign currency loss (gain) 380 (1,029) 1,596 (3,577)
Net loss (gain) on disposal of fixed assets 81 19 (283) 74
Other items (383) 7 641 (138)
Total $ 3,604 $ 2,221 [1] $ 12,272 $ 4,143 [1]
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Restructuring (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
USD ($)
Sep. 25, 2020
USD ($)
Oct. 01, 2021
USD ($)
Sep. 25, 2020
USD ($)
claim
Restructuring Cost and Reserve [Line Items]        
Restructuring (income) expense $ 0 $ 2,593 [1] $ (378) $ 7,144 [1]
Precision Optics        
Restructuring Cost and Reserve [Line Items]        
Restructuring (income) expense     $ (400)  
Performance Alloys and Composites        
Restructuring Cost and Reserve [Line Items]        
Restructuring (income) expense   2,200   6,800
Severance costs   400   1,800
Other restructuring costs   $ 1,600   $ 4,400
Number of positions eliminated | claim       60
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Dec. 31, 2020
Income Tax Disclosure [Abstract]          
Effective income tax rate, percent 15.90% 726.00% 16.10% (421.20%)  
Effective income tax rate, amount     $ (900)    
Unearned revenue $ 8,308 $ 3,800 $ 8,308 $ 3,800 $ 7,713
v3.21.2
Earnings Per Share (EPS) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Numerator for basic and diluted EPS:        
Net income $ 18,156 [1] $ 5,471 [2] $ 52,791 [1] $ 7,396 [2],[3]
Denominator for basic EPS:        
Weighted-average shares outstanding (in shares) 20,439 20,325 [1] 20,414 20,342 [1]
Effect of dilutive securities:        
Diluted potential common shares (in shares) 218 267 245 253
Denominator for diluted EPS:        
Adjusted weighted-average shares outstanding (in shares) 20,657 20,592 [1] 20,659 20,595 [1]
Basic EPS (in dollars per share) $ 0.89 $ 0.27 [1] $ 2.59 $ 0.36 [1]
Diluted EPS (in dollars per share) $ 0.88 $ 0.27 [1] $ 2.56 $ 0.36 [1]
Stock Appreciation Rights (SARs)        
Effect of dilutive securities:        
Dilutive effect of share-based compensation (in shares) 72 46 73 39
Restricted Stock Units (RSUs)        
Effect of dilutive securities:        
Dilutive effect of share-based compensation (in shares) 94 77 113 90
Performance Shares        
Effect of dilutive securities:        
Dilutive effect of share-based compensation (in shares) 52 144 59 124
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[2] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
[3] Amounts for the period ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Earnings Per Share (EPS) - Additional Information (Details) - shares
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Out-of-The-Money        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Securities excluded from diluted EPS calculation 55,598 114,335 56,319 164,447
v3.21.2
Inventories (Detail) - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 79,937 $ 42,905
Work in process 179,616 156,093
Finished goods 52,192 51,780
Inventories, net $ 311,745 $ 250,778
v3.21.2
Inventories - Additional Information (Details) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Dec. 31, 2020
Oct. 01, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]      
Notional amount   $ 452.9 $ 400.0
Prior period reclassification adjustment $ 44.6    
v3.21.2
Customer Prepayments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Oct. 01, 2021
Dec. 31, 2020
Customer Prepayments [Abstract]      
Prepayments customer amount $ 70.0 $ 70.0  
Deferred income 67.9 67.9 $ 58.8
Unearned income $ 1.0 $ 9.0  
v3.21.2
Pensions and Other Post-employment Benefits (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Pension Benefits        
Components of net periodic benefit (credit) cost        
Service cost $ 0 $ 0 $ 0 $ 0
Interest cost 986 1,215 2,959 3,644
Expected return on plan assets (2,234) (2,206) (6,702) (6,616)
Amortization of prior service cost (benefit) 0 0 0 0
Amortization of net loss (gain) 418 284 1,253 852
Net periodic benefit (credit) cost (830) (707) (2,490) (2,120)
Settlements     0 94
Total net benefit (credit) cost     (2,490) (2,026)
Other Benefits        
Components of net periodic benefit (credit) cost        
Service cost 20 14 60 45
Interest cost 29 53 87 160
Expected return on plan assets 0 0 0 0
Amortization of prior service cost (benefit) (374) (374) (1,123) (1,123)
Amortization of net loss (gain) (69) (83) (206) (249)
Net periodic benefit (credit) cost $ (394) $ (390) (1,182) (1,167)
Settlements     0 0
Total net benefit (credit) cost     $ (1,182) $ (1,167)
v3.21.2
Pensions and Other Post-employment Benefits - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Pension Benefits        
Defined Benefit Plan Disclosure        
Contributions by employer $ 0 $ 0 $ 0 $ 0
v3.21.2
Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances [1] $ 681,701 $ 638,356 $ 655,630 $ 645,743
Other comprehensive income (loss) before reclassifications (1,366) 2,121 (2,824) 485
Amounts reclassified from accumulated other comprehensive income (loss) 21 537 (2,685) 1,851
Net current period other comprehensive (loss) income before tax (1,345) 2,658 (5,509) 2,336
Deferred taxes 124 (132) 405 (345)
Other comprehensive (loss) income [1] (1,469) 2,790 (5,914) 2,681
Ending balances [1] 697,428 644,172 697,428 644,172
Gains and Losses on Cash Flow Hedges        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances 1,789 390 817 897
Other comprehensive income (loss) before reclassifications 663 (955) 4,869 (2,884)
Amounts reclassified from accumulated other comprehensive income (loss) (93) 548 (3,033) 1,817
Net current period other comprehensive (loss) income before tax 570 (407) 1,836 (1,067)
Deferred taxes 131 (92) 425 (245)
Other comprehensive (loss) income 439 (315) 1,411 (822)
Ending balances 2,228 75 2,228 75
Pension and Post-Employment Benefits        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances (43,226) (41,241) (43,473) (41,346)
Other comprehensive income (loss) before reclassifications 0 0 0 0
Amounts reclassified from accumulated other comprehensive income (loss) 114 (11) 348 34
Net current period other comprehensive (loss) income before tax 114 (11) 348 34
Deferred taxes (7) (40) (20) (100)
Other comprehensive (loss) income 121 29 368 134
Ending balances (43,105) (41,212) (43,105) (41,212)
Foreign Currency Translation        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances (1,647) (4,720) 4,017 (5,013)
Other comprehensive income (loss) before reclassifications (2,029) 3,076 (7,693) 3,369
Amounts reclassified from accumulated other comprehensive income (loss) 0 0 0 0
Net current period other comprehensive (loss) income before tax (2,029) 3,076 (7,693) 3,369
Deferred taxes 0 0 0 0
Other comprehensive (loss) income (2,029) 3,076 (7,693) 3,369
Ending balances (3,676) (1,644) (3,676) (1,644)
Accumulated Other Comprehensive Loss        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances (43,084) (45,571) (38,639) (45,462)
Other comprehensive (loss) income (1,469) 2,790 (5,914) 2,681
Ending balances (44,553) (42,781) (44,553) (42,781)
Foreign Currency | Gains and Losses on Cash Flow Hedges        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances 1,603 1,065 519 1,324
Other comprehensive income (loss) before reclassifications 625 (520) 1,893 (863)
Amounts reclassified from accumulated other comprehensive income (loss) (2) 191 138 198
Net current period other comprehensive (loss) income before tax 623 (329) 2,031 (665)
Deferred taxes 143 (76) 467 (153)
Other comprehensive (loss) income 480 (253) 1,564 (512)
Ending balances 2,083 812 2,083 812
Precious Metals | Gains and Losses on Cash Flow Hedges        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances 186 (779) (170) (452)
Other comprehensive income (loss) before reclassifications 30 (617) 532 (1,851)
Amounts reclassified from accumulated other comprehensive income (loss) (83) 710 (122) 1,519
Net current period other comprehensive (loss) income before tax (53) 93 410 (332)
Deferred taxes (12) 22 95 (76)
Other comprehensive (loss) income (41) 71 315 (256)
Ending balances 145 (708) 145 (708)
Copper | Gains and Losses on Cash Flow Hedges        
Accumulated Other Comprehensive Income (Loss) [Rollforward]        
Beginning balances 0 104 468 25
Other comprehensive income (loss) before reclassifications 8 182 2,444 (170)
Amounts reclassified from accumulated other comprehensive income (loss) (8) (353) (3,049) 100
Net current period other comprehensive (loss) income before tax 0 (171) (605) (70)
Deferred taxes 0 (38) (137) (16)
Other comprehensive (loss) income 0 (133) (468) (54)
Ending balances $ 0 $ (29) $ 0 $ (29)
[1] Amounts for the periods ended September 25, 2020 have been adjusted to reflect the change in inventory accounting method, as described in Note A to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.
v3.21.2
Stock-based Compensation Expense - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 1.5 $ 0.1 $ 5.3 $ 4.1
Unamortized compensation cost $ 10.9   $ 10.9  
Stock Appreciation Rights (SARs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares granted (in shares)     52,709  
Weighted average exercise price on SARs granted (in dollars per share)     $ 68.82  
Grant date fair value per unit (in dollars per share)     $ 20.66  
Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares granted (in shares)     59,818  
Grant date fair value per unit (in dollars per share)     $ 68.62  
Vesting period     3 years  
Director Equity Plan [Domain]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares granted (in shares)     9,904  
Grant date fair value per unit (in dollars per share)     $ 75.77  
Vesting period     1 year  
Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Grant date fair value per unit (in dollars per share)     $ 83.78  
Vesting period     3 years  
v3.21.2
Stock-based Compensation Expense (Detail) - Stock Appreciation Rights (SARs)
 9 Months Ended
Oct. 01, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Risk-free interest rate 0.57%
Dividend yield 0.70%
Volatility 37.60%
Expected term (in years) 4 years 7 months 6 days
v3.21.2
Fair Value of Financial Instruments (Detail) - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Financial Assets [Abstract]    
Deferred compensation investments $ 3,994 $ 3,802
Foreign currency forward contracts 1,800 107
Precious metal swaps 237 127
Copper swaps 0 632
Total 6,031 4,668
Financial Liabilities [Abstract]    
Deferred compensation liability 3,994 3,802
Foreign currency forward contracts 128 1,203
Precious metal swaps 49 349
Copper swaps 0 27
Total 4,171 5,381
Quoted Prices in  Active Markets  for Identical Assets (Level 1)    
Financial Assets [Abstract]    
Deferred compensation investments 3,994 3,802
Foreign currency forward contracts 0 0
Precious metal swaps 0 0
Copper swaps 0 0
Total 3,994 3,802
Financial Liabilities [Abstract]    
Deferred compensation liability 3,994 3,802
Foreign currency forward contracts 0 0
Precious metal swaps 0 0
Copper swaps 0 0
Total 3,994 3,802
Significant Other Observable Inputs (Level 2)    
Financial Assets [Abstract]    
Deferred compensation investments 0 0
Foreign currency forward contracts 1,800 107
Precious metal swaps 237 127
Copper swaps 0 632
Total 2,037 866
Financial Liabilities [Abstract]    
Deferred compensation liability 0 0
Foreign currency forward contracts 128 1,203
Precious metal swaps 49 349
Copper swaps 0 27
Total 177 1,579
Significant Unobservable Inputs (Level 3)    
Financial Assets [Abstract]    
Deferred compensation investments 0 0
Foreign currency forward contracts 0 0
Precious metal swaps 0 0
Copper swaps 0 0
Total 0 0
Financial Liabilities [Abstract]    
Deferred compensation liability 0 0
Foreign currency forward contracts 0 0
Precious metal swaps 0 0
Copper swaps 0 0
Total $ 0 $ 0
v3.21.2
Derivative Instruments and Hedging Activity - Not Designated as Hedges (Details) - Not designated as hedging instrument - Foreign Currency - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Prepaid expenses    
Derivative Instruments, Gain (Loss) [Line Items]    
Notional amount, asset $ 58,289 $ 62,012
Fair value, asset 914 107
Other liabilities and accrued items    
Derivative Instruments, Gain (Loss) [Line Items]    
Notional amount, liability 17,735 7,695
Fair value, liability $ 125 $ 55
v3.21.2
Derivative Instruments and Hedging Activity - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]        
Gain (Loss) on foreign currency $ 0.7 $ 0.4 $ (0.5) $ 2.7
v3.21.2
Derivative Instruments and Hedging Activity (Details - Designated as hedges) - Designated as hedging instrument - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Derivative [Line Items]    
Notional amount total $ 42,172 $ 36,068
Fair value total 1,071 765
Prepaid expenses    
Derivative [Line Items]    
Notional amount, asset 36,261 8,380
Fair value, asset 1,054 759
Prepaid expenses | Foreign currency forward contracts | Yen    
Derivative [Line Items]    
Notional amount, asset 4,786 0
Fair value, asset 109 0
Prepaid expenses | Foreign currency forward contracts | Euro    
Derivative [Line Items]    
Notional amount, asset 27,028 0
Fair value, asset 720 0
Prepaid expenses | Precious metal swaps    
Derivative [Line Items]    
Notional amount, asset 4,447 2,155
Fair value, asset 225 127
Prepaid expenses | Copper    
Derivative [Line Items]    
Notional amount, asset 0 6,225
Fair value, asset 0 632
Other assets    
Derivative [Line Items]    
Notional amount, asset 4,435 0
Fair value, asset 69 0
Other assets | Foreign currency forward contracts | Yen    
Derivative [Line Items]    
Notional amount, asset 327 0
Fair value, asset 1 0
Other assets | Foreign currency forward contracts | Euro    
Derivative [Line Items]    
Notional amount, asset 3,567 0
Fair value, asset 56 0
Other assets | Precious metal swaps    
Derivative [Line Items]    
Notional amount, asset 541 0
Fair value, asset 12 0
Other liabilities and accrued items    
Derivative [Line Items]    
Notional amount, liability 1,476 27,688
Fair value, liability 52 1,524
Other liabilities and accrued items | Foreign currency forward contracts | Yen    
Derivative [Line Items]    
Notional amount, liability 606 2,668
Fair value, liability 3 59
Other liabilities and accrued items | Foreign currency forward contracts | Euro    
Derivative [Line Items]    
Notional amount, liability 0 17,611
Fair value, liability 0 1,089
Other liabilities and accrued items | Precious metal swaps    
Derivative [Line Items]    
Notional amount, liability 870 4,964
Fair value, liability 49 349
Other liabilities and accrued items | Copper    
Derivative [Line Items]    
Notional amount, liability 0 2,445
Fair value, liability $ 0 $ 27
v3.21.2
Derivative Instruments and Hedging Activity (Details - Reclassifications from AOCI) - Designated as hedging instrument - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 25, 2020
Oct. 01, 2021
Sep. 25, 2020
Derivative Instruments, Gain (Loss) [Line Items]        
Total derivative $ (93) $ 548 $ (3,033) $ 1,817
Foreign currency forward contracts | Net sales        
Derivative Instruments, Gain (Loss) [Line Items]        
Total derivative (2) 191 138 198
Precious metal swaps | Cost of sales        
Derivative Instruments, Gain (Loss) [Line Items]        
Total derivative (83) 710 (122) 1,519
Copper | Cost of sales        
Derivative Instruments, Gain (Loss) [Line Items]        
Total derivative $ (8) $ (353) $ (3,049) $ 100
v3.21.2
Contingencies (Detail)
$ in Millions
 9 Months Ended
Oct. 01, 2021
USD ($)
claim
Dec. 31, 2020
USD ($)
Loss Contingency [Abstract]    
Number beryllium cases | claim 2  
Accrual for environmental loss contingencies, significant assumptions The reserves are established based upon analyses conducted by the Company’s engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agencies.  
Undiscounted reserve balance | $ $ 4.9 $ 5.5
v3.21.2
Debt (Details) - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]    
Borrowings under Credit Agreement $ 77,010 $ 34,000
Foreign debt 2,555 3,157
Fixed rate industrial development revenue bonds 0 1,322
Total debt outstanding 79,565 38,479
Current portion of long-term debt (529) (1,937)
Long-term debt $ 79,036 $ 36,542
v3.21.2
Debt - Additional Information (Details) - USD ($)
$ in Thousands
Oct. 01, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]    
Revolving credit facility $ 77,010 $ 34,000
Revolving credit facility, interest rate 1.51% 1.65%
Remaining borrowing capacity $ 319,400 $ 245,800
Letter of Credit    
Line of Credit Facility [Line Items]    
Letters of credit outstanding $ 47,300 $ 48,100
v3.21.2
Subsequent Event (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Sep. 19, 2021
Oct. 30, 2021
Oct. 01, 2021
Subsequent Event | Revolving Credit Facility      
Subsequent Event [Line Items]      
Term of loan facility   5 years  
Loans Payable | Subsequent Event      
Subsequent Event [Line Items]      
Revolving credit facility agreement   $ 103.0  
Loans Payable | Five-year Term Loan | Subsequent Event      
Subsequent Event [Line Items]      
Debt instrument, face amount   $ 300.0  
Term of loan facility   5 years  
H.C. Starck      
Subsequent Event [Line Items]      
Purchase price $ 380.0    
Integration costs     $ 5.3