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Operating Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Operating Segments and Geographic Information | SEGMENTS AND GEOGRAPHIC INFORMATION Our reporting structure is comprised of the following operating segments: ACS, EMS and PES. Our non-core businesses are reported in the Other operating segment.
• | Advanced Connectivity Solutions
The ACS operating segment includes circuit materials and solutions enabling high-performance and high-reliability connectivity for applications in wireless communications infrastructure (e.g., power amplifiers, antennas, small cells and distributed antenna systems), automotive (e.g., active safety, advanced driver assistance systems, telematics and thermal management), connected devices, (e.g., mobile internet devices and Internet of Things), wired infrastructure (e.g., computing, servers and storage), consumer electronics and aerospace/defense. These products have characteristics that offer performance and other functional advantages in many market applications and serve to differentiate our products from other commonly available materials. These products are sold principally to independent and captive printed circuit board fabricators that convert our laminates to custom printed circuits. The polymer-based dielectric layers of our circuit board laminates are proprietary materials that provide highly specialized electrical and mechanical properties. We sell our circuit materials under various trade names, including RO3000®, RO4000®, RT/duroid®, AD Series TM and CLTE Series TM. All of these laminates are used for making circuitry that receive, transmit, and process high frequency communications signals, yet each laminate has varying properties that address specific needs and applications within the communications market.
• | Elastomeric Material Solutions
The EMS operating segment includes elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications including general industrial, portable electronics (e.g., mobile internet devices), consumer goods (e.g., protective sports equipment), automotive, mass transportation, construction and printing applications. These materials have characteristics that offer functional advantages in many market applications which serve to differentiate Rogers’ products from other commonly available materials. EMS products are sold globally to converters, fabricators, distributors and original equipment manufacturers (OEMs) for use in general industrial applications, portable electronics including mobile internet devices, consumer goods, mass transportation, construction, printing applications and other markets. Trade names for our EMS products include: DeWAL™, ARLON®, PORON®, XRD®, BISCO®, HeatSORB™, eSORBA® and Diversified Silicone Products. In November 2016, we acquired DeWAL Industries, a leading manufacturer of polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes and specialty products, and in January 2017, we acquired the principal operating assets of Diversified Silicone Products, Inc. (DSP), a custom silicone product development and manufacturing business. The acquisitions of DeWAL and DSP, and their subsequent integration into our EMS operating segment, has enabled us to extend the product portfolio and technology capabilities with complementary high-end, high performance elastomeric materials. We have two 50% owned joint ventures that extend and complement our worldwide business in the EMS operating segment. Rogers INOAC Corporation (RIC), a joint venture with Japan-based INOAC Corporation, manufactures high performance polyurethane foam materials in Mie and Taketoyo, Japan to predominantly serve the Japanese and Taiwanese markets. Rogers INOAC Suzhou Corporation (RIS) is a joint venture in China that was established with INOAC Corporation and provides polyurethane foam materials primarily to the Asian marketplace.
• | Power Electronics Solutions
The PES operating segment is comprised of direct bond copper (DBC) ceramic substrate products and busbar power distribution products. We believe that our advanced, customized components enable the performance and reliability of today’s growing array of power electronic devices and serve to increase the efficiency of applications by managing heat and ensuring the reliability of these critical devices used in converting raw energy into controlled and regulated power that can be used and managed. Trade names for our PES products include curamik® ceramic substrates and ROLINX® products. Our curamik® ceramic substrates are used in the design of intelligent power management devices, such as insulated gate bipolar transistor (IGBT) modules, which enable a wide range of products including highly efficient industrial motor drives, wind and solar converters and electric and hybrid electric vehicle drive systems. ROLINX® products are used in high power electrical inverter and converter systems for use in mass transit (e.g. high speed trains); clean technology applications (e.g. wind turbines, solar farms and electric vehicles) and variable frequency drives for high to mid power applications.
• | Other
The remainder of operations are accumulated and reported as our Other operating segment, which consists of elastomer components, floats and inverter distribution activities. Elastomer components are sold to OEMs for applications in ground transportation, office equipment, consumer and other markets. Trade names for our elastomer components include: NITROPHYL® floats for level sensing in fuel tanks, motors, and storage tanks and ENDUR® elastomer rollers and belts for document handling in copiers, printers, mail sorting machines and automated teller machines. Inverters are sold primarily to OEMs and fabricators that in turn sell to various other third parties primarily serving the portable communication and automotive markets. The Arlon polyimide and thermoset laminate business was also included within our Other operating segment prior to its divestiture in December 2015. The following table sets forth the information about our operating segments for the periods indicated:
(Dollars in thousands) | Advanced Connectivity Solutions |  | Elastomeric Material Solutions |  | Power Electronics Solutions |  | Other |  | Total
2017 |  |  |  |  |  |  |  |  |
Net sales | $ | 301,092 |  |  | $ | 312,661 |  |  | $ | 184,954 |  |  | $ | 22,336 |  |  | $ | 821,043 |
Operating income | $ | 56,186 |  |  | $ | 51,404 |  |  | $ | 16,036 |  |  | $ | 7,153 |  |  | $ | 130,779 |
Total assets | $ | 353,786 |  |  | $ | 489,456 |  |  | $ | 261,034 |  |  | $ | 20,858 |  |  | $ | 1,125,134 |
Capital expenditures | $ | 9,900 |  |  | $ | 7,563 |  |  | $ | 9,238 |  |  | $ | 514 |  |  | $ | 27,215 |
Depreciation & amortization | $ | 16,351 |  |  | $ | 16,270 |  |  | $ | 10,572 |  |  | $ | 906 |  |  | $ | 44,099 |
Investment in unconsolidated joint ventures | $ | — |  |  | $ | 18,324 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,324 |
Equity income in unconsolidated joint ventures | $ | — |  |  | $ | 4,898 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,898 |
2016 |  |  |  |  |  |  |  |  |
Net sales | $ | 277,787 |  |  | $ | 203,181 |  |  | $ | 152,367 |  |  | $ | 22,979 |  |  | $ | 656,314 |
Operating income | $ | 43,965 |  |  | $ | 26,593 |  |  | $ | 5,965 |  |  | $ | 7,329 |  |  | $ | 83,852 |
Total assets | $ | 361,746 |  |  | $ | 421,011 |  |  | $ | 247,187 |  |  | $ | 26,556 |  |  | $ | 1,056,500 |
Capital expenditures | $ | 7,569 |  |  | $ | 4,051 |  |  | $ | 6,009 |  |  | $ | 507 |  |  | $ | 18,136 |
Depreciation & amortization | $ | 15,654 |  |  | $ | 10,141 |  |  | $ | 11,208 |  |  | $ | 844 |  |  | $ | 37,847 |
Investment in unconsolidated joint ventures | $ | — |  |  | $ | 16,183 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,183 |
Equity income in unconsolidated joint ventures | $ | — |  |  | $ | 4,146 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,146 |
2015 |  |  |  |  |  |  |  |  |
Net sales | $ | 267,630 |  |  | $ | 180,898 |  |  | $ | 150,288 |  |  | $ | 42,627 |  |  | $ | 641,443 |
Operating income | $ | 45,115 |  |  | $ | 19,979 |  |  | $ | 3,750 |  |  | $ | 7,411 |  |  | $ | 76,255 |
Total assets | $ | 315,358 |  |  | $ | 264,982 |  |  | $ | 320,755 |  |  | $ | 29,260 |  |  | $ | 930,355 |
Capital expenditures | $ | 15,532 |  |  | $ | 4,103 |  |  | $ | 4,185 |  |  | $ | 1,017 |  |  | $ | 24,837 |
Depreciation & amortization | $ | 15,403 |  |  | $ | 9,280 |  |  | $ | 7,855 |  |  | $ | 1,516 |  |  | $ | 34,054 |
Investment in unconsolidated joint ventures | $ | — |  |  | $ | 15,348 |  |  | $ | — |  |  | $ | — |  |  | $ | 15,348 |
Equity income in unconsolidated joint ventures | $ | — |  |  | $ | 2,890 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,890 |
The following table sets forth the operating income reconciliation to the consolidated statements of operations for the periods indicated:
(Dollars in thousands) | 2017 |  | 2016 |  | 2015
Operating income | $ | 130,779 |  |  | $ | 83,852 |  |  | $ | 76,255 |
Equity income in unconsolidated joint ventures | 4,898 |  |  | 4,146 |  |  | 2,890 |
Other income (expense), net | 3,379 |  |  | (1,788 | ) |  | (8,492 | )
Interest expense, net | (6,131 | ) |  | (3,930 | ) |  | (4,480 | )
Income before income taxes | $ | 132,925 |  |  | $ | 82,280 |  |  | $ | 66,173 |
Information relating to our operations by geographic area was as follows:
| Net Sales (1) |  | Long-lived Assets (2)
(Dollars in thousands) | 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
United States | $ | 225,621 |  |  | $ | 158,136 |  |  | $ | 164,478 |  |  | $ | 370,964 |  |  | $ | 326,199 |  |  | $ | 218,439 |
China | 272,184 |  |  | 236,961 |  |  | 227,993 |  |  | 57,404 |  |  | 62,728 |  |  | 65,994 |
Germany | 89,203 |  |  | 79,480 |  |  | 76,569 |  |  | 114,497 |  |  | 101,725 |  |  | 110,240 |
Other | 234,035 |  |  | 181,737 |  |  | 172,403 |  |  | 34,131 |  |  | 32,242 |  |  | 34,460 |
Total | $ | 821,043 |  |  | $ | 656,314 |  |  | $ | 641,443 |  |  | $ | 576,996 |  |  | $ | 522,894 |  |  | $ | 429,133 |
(1) | Net sales are allocated to countries based on the location of the customer. Countries with 10% or more of net sales have been disclosed.
(2) | Long-lived assets are based on the location of the asset and are comprised of goodwill and other intangible assets and property, plant and equipment. Countries with 10% of more of long-lived assets have been disclosed.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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