XML 33 R13.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Acquisition | 12 Months Ended
--- | ---
Dec. 31, 2015
Business Combinations [Abstract] |
ACQUISITION | ACQUISITION On January 22, 2015, we completed the acquisition of Arlon and its subsidiaries, other than Arlon India (Pvt) Limited (collectively, “Arlon”), pursuant to the terms of the Stock Purchase Agreement, dated December 18, 2014, by and among the Company, Handy & Harman Group, Ltd. (“H&H Group”) and its subsidiary Bairnco Corporation (“Bairnco”), as amended, (the “Purchase Agreement”). Pursuant to the terms of the Purchase Agreement, we acquired Arlon and assumed certain liabilities related to the acquisition for an aggregate purchase price of approximately $157 million. We used borrowings of $125.0 million under our bank credit facility in addition to cash on hand to fund the acquisition. Arlon manufactures high performance materials for the printed circuit board industry and silicone rubber-based materials. The acquisition of Arlon and its integration into our operating segments is expected to provide increased scale and complementary product offerings, allowing us to enhance our ability to support our customers. The acquisition has been accounted for in accordance with applicable purchase accounting guidance. We recorded goodwill, primarily related to the expected synergies from combining operations and the value of the existing workforce. We also recorded intangible assets related to trademarks, technology and customer relationships. As of the filing date of this Form 10-K, the process of valuing the net assets of the business is complete. The following table represents the fair market values assigned to the acquired assets and liabilities in the transaction:
(Dollars in thousands) | January 22, 2015
Assets: |
Cash | $ | 142 |
Accounts receivable | 17,301 |
Other current assets | 856 |
Inventory | 9,916 |
Deferred income tax assets, current | 1,084 |
Property, plant & equipment | 30,667 |
Intangible assets | 50,020 |
Goodwill | 85,803 |
Other long-term assets | 106 |
Total assets | 195,895 |
Liabilities: |  |
Accounts payable | 4,958 |
Other current liabilities | 4,385 |
Deferred tax liability | 23,463 |
Other long-term liabilities | 4,540 |
Total liabilities | 37,346 |
Fair value of net assets acquired | $ | 158,549 |
The intangible assets consist of developed technology valued at $15.8 million, customer relationships valued at $32.7 million and trademarks valued at $1.6 million. The fair value of acquired identified intangible assets was determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate. These inputs are considered Level 3 under the fair value measurements and disclosure guidance. The weighted average amortization period for the intangible asset classes are 5.7 years for developed technology, 6.0 years for customer relationships and 3.2 years for trademarks, resulting in amortization expenses ranging from $1.8 million to $5.8 million annually. The estimated annual future amortization expense is $5.8 million for each of the years ending 2016, 2017, 2018 and 2019. During 2015, we incurred transaction costs of $1.5 million, which were recorded within selling, general and administrative expenses on the consolidated statements of operations. The results of Arlon have been included in our consolidated financial statements only for the period subsequent to the completion of our acquisition. Arlon's revenues for the year ended December 31, 2015 totaled $100.0 million. Arlon's net operating income for the year ended December 31, 2015 totaled $24.7 million. The following unaudited pro forma financial information presents the combined results of operations of Rogers and Arlon for the year and quarter ended December 31, 2014, as if the acquisition had occurred on January 1, 2014. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the Arlon acquisition been completed as of January 1, 2014 and should not be taken as indicative of our future consolidated results of operations.
| December 31, 2014
(Dollars in thousands) | Year ended | Quarter ended
Net sales | $ | 714,303 |  | $ | 173,633 |
Net income | $ | 63,751 |  | $ | 8,814 |
On December 21, 2015 we sold an Arlon business, which makes polyimide and thermoset epoxy laminate products. This operation was acquired as part of our acquisition of Arlon. The operations were previously reported with our Other business. We received proceeds of $1.3 million and recognized a loss of $4.8 million, which was recorded in "Other income (expense), net" within the consolidated statements of operations. The assets of this business were reported as assets held for sale in the third quarter of 2015.

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
Name: | us-gaap_MergersAcquisitionsAndDispositionsDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration