ROGERS CORPROG

ROGERS CORP Fair Value Disclosure

10-KFiled Mar 1, 20232 min read
Fair Value Measurements
The accounting guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
•Level 1 – Quoted prices in active markets for identical assets or liabilities.
•Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
As a result of our pension termination and settlement efforts in late 2019 and the first half of 2020, we had a pension surplus investment balance, which was accounted for as an available-for-sale investment. For additional information regarding this balance, refer to “Note 11 – Pension Benefits and Other Postretirement Benefits.” Available-for-sale investments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, were as follows:
Available-for-Sale Investment at Fair Value as of December 31, 2022
Pension surplus investmentLevel 1Level 2Level 3Total
$— $— $— $— 
Available-for-Sale Investment at Fair Value as of December 31, 2021
Level 1Level 2Level 3Total(1)
Pension surplus investment(1)
$6,638 $— $— $6,638 
(1) This balance was invested in a money market fund and was recorded in the “Other long-term assets” line item in the condensed consolidated statements of financial position. As of December 31, 2021, the fair value of this investment approximated its carrying value.
From time to time we enter into various instruments that require fair value measurement, including foreign currency contracts, copper derivative contracts and interest rate swaps. Derivative instruments measured at fair value on a recurring basis, categorized by the level of inputs used in the valuation, include:
Derivative Instruments at Fair Value as of December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3
Total(1)
Foreign currency contracts$— $(82)$— $(82)
Copper derivative contracts$— $500 $— $500 
Derivative Instruments at Fair Value as of December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3
Total(1)
Foreign currency contracts$— $(16)$— $(16)
Copper derivative contracts$— $1,344 $— $1,344 
(1) All balances were recorded in the “Other current assets” or “Other accrued liabilities” line items in the consolidated statements of financial position.
For additional information on our derivative contracts, refer to “Note 3 – Hedging Transactions and Derivative Financial Instruments.”

Historical Timeline

Fiscal YearFiled
2022Mar 1, 2023Showing above
2021Feb 22, 2022
2020Feb 19, 2021
2019Feb 21, 2020
2018Feb 21, 2019
2017Feb 28, 2018
2016Feb 21, 2017
2015Feb 23, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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