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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
____________________________________________ 
FORM 10-Q
(Mark One)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             
Commission file number 001-15885
MATERION CORPORATION
(Exact name of Registrant as specified in charter)
Ohio 34-1919973
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
6070 Parkland Blvd., Mayfield Heights, Ohio 44124
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:
(216)-486-4200

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueMTRNNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ       No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  þ        No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer þ Accelerated filer  ¨
Non-accelerated filer  ¨ Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  þ
Number of Shares of Common Stock, without par value, outstanding at September 30, 2022: 20,528,138.



PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

Materion Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)

 Third Quarter EndedNine Months Ended
(Thousands, except per share amounts)September 30, 2022October 1, 2021September 30, 2022October 1, 2021
Net sales$428,191 $388,028 $1,322,531 $1,113,413 
Cost of sales345,448 313,715 1,077,070 902,723 
Gross margin82,743 74,313 245,461 210,690 
Selling, general, and administrative expense38,958 43,195 122,666 118,031 
Research and development expense7,430 6,354 22,096 19,164 
Restructuring expense (income)484  1,560 (378)
Other—net6,774 3,604 18,575 12,272 
Operating profit 29,097 21,160 80,564 61,601 
Other non-operating (income)—net(1,175)(1,279)(3,512)(3,832)
Interest expense—net5,888 861 14,325 2,480 
Income before income taxes24,384 21,578 69,751 62,953 
Income tax expense 4,432 3,422 12,525 10,162 
Net income $19,952 $18,156 $57,226 $52,791 
Basic earnings per share:
Net income per share of common stock$0.97 $0.89 $2.79 $2.59 
Diluted earnings per share:
Net income per share of common stock$0.96 $0.88 $2.76 $2.56 
Weighted-average number of shares of common stock outstanding:
Basic20,526 20,439 20,502 20,414 
Diluted20,780 20,657 20,756 20,659 













See notes to these consolidated financial statements.


2


Materion Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
 
 Third Quarter EndedNine Months Ended
 September 30,October 1,September 30,October 1,
(Thousands)2022202120222021
Net income $19,952 $18,156 $57,226 $52,791 
Other comprehensive income (loss):
Foreign currency translation adjustment(6,094)(2,029)(14,484)(7,693)
Derivative and hedging activity, net of tax4,125 439 8,289 1,411 
Pension and post-employment benefit adjustment, net of tax8 121 (216)368 
Other comprehensive loss(1,961)(1,469)(6,411)(5,914)
Comprehensive income$17,991 $16,687 $50,815 $46,877 





































See notes to these consolidated financial statements.


3


Materion Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
September 30,Dec. 31,
(Thousands)20222021
Assets
Current assets
Cash and cash equivalents$20,682 $14,462 
Accounts receivable, net238,975 223,553 
Inventories, net420,299 361,115 
Prepaid and other current assets29,708 28,122 
Total current assets709,664 627,252 
Deferred income taxes4,701 5,431 
Property, plant, and equipment1,173,073 1,132,223 
Less allowances for depreciation, depletion, and amortization(746,966)(723,248)
Property, plant, and equipment, net426,107 408,975 
Operating lease, right-of-use assets65,716 63,096 
Intangible assets, net145,089 156,736 
Other assets32,475 27,369 
Goodwill318,571 318,620 
Total Assets$1,702,323 $1,607,479 
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt$19,747 $15,359 
Accounts payable96,482 86,243 
Salaries and wages29,974 37,544 
Other liabilities and accrued items47,949 53,388 
Income taxes1,542 4,205 
Unearned revenue6,596 7,770 
Total current liabilities202,290 204,509 
Other long-term liabilities13,991 14,954 
Operating lease liabilities60,248 57,099 
Finance lease liabilities13,009 16,327 
Retirement and post-employment benefits29,421 33,394 
Unearned income110,723 97,962 
Long-term income taxes1,257 1,190 
Deferred income taxes30,427 27,216 
Long-term debt474,280 434,388 
Shareholders’ equity
Serial preferred stock (no par value; 5,000 authorized shares, none issued)
  
Common stock (no par value; 60,000 authorized shares, issued shares of 27,148 at both September 30th and December 31st)
284,024 271,978 
Retained earnings743,283 693,756 
Common stock in treasury(219,219)(209,920)
Accumulated other comprehensive loss(46,580)(40,169)
Other equity 5,169 4,795 
Total shareholders' equity766,677 720,440 
Total Liabilities and Shareholders’ Equity$1,702,323 $1,607,479 




See the notes to these consolidated financial statements.


4


Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
 Nine Months Ended
 September 30,October 1,
(Thousands)20222021
Cash flows from operating activities:
Net income $57,226 $52,791 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization39,223 32,478 
Amortization of deferred financing costs in interest expense1,310 546 
Stock-based compensation expense (non-cash)5,997 4,924 
Deferred income tax expense (benefit)1,825 (263)
Changes in assets and liabilities:
Accounts receivable
(20,964)(26,041)
Inventory(64,832)(62,353)
Prepaid and other current assets(3,019)(7,020)
Accounts payable and accrued expenses(1,785)35,314 
Unearned revenue(2,191)650 
Interest and taxes payable
(1,741)(1,504)
Unearned income due to customer prepayments17,501 9,022 
Other-net5,654 1,974 
Net cash provided by operating activities34,204 40,518 
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment(54,236)(77,640)
Proceeds from sale of property, plant, and equipment827 686 
Payments for acquisition(2,971) 
Net cash used in investing activities(56,380)(76,954)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit agreement, net49,092 43,010 
Proceeds from issuance of debt6,643  
Repayment of long-term debt(11,761)(1,803)
Principal payments under finance lease obligations(1,985)(2,152)
Cash dividends paid(7,584)(7,243)
Payments of withholding taxes for stock-based compensation awards(3,056)(3,033)
Net cash provided by financing activities31,349 28,779 
Effects of exchange rate changes(2,953)(212)
Net change in cash and cash equivalents6,220 (7,869)
Cash and cash equivalents at beginning of period14,462 25,878 
Cash and cash equivalents at end of period$20,682 $18,009 

See notes to these consolidated financial statements.


5


Materion Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity
(Unaudited)
Common SharesShareholders' Equity
(Thousands, except per share amounts)Common SharesCommon Shares Held in TreasuryCommon
Stock
Retained
Earnings
Common
Stock in
Treasury
Accumulated Other
Comprehensive
Loss
Other
Equity
Total
Balance at July 1, 202220,523 (6,625)$281,296 $725,918 $(218,356)$(44,619)$4,915 $749,154 
Net income— — — 19,952 — — — 19,952 
Other comprehensive income— — — — — (1,961)— (1,961)
Cash dividends declared ($0.125 per share)
— — — (2,557)— — — (2,557)
Stock-based compensation activity6 6 2,695 (30)(392)— — 2,273 
Payments of withholding taxes for stock-based compensation awards(2)(2)— — (244)— — (244)
Directors’ deferred compensation33 — (227)— 254 60 
Balance at September 30, 202220,528 (6,620)$284,024 $743,283 $(219,219)$(46,580)$5,169 $766,677 
Balance at July 2, 202120,438 (6,710)$268,205 $660,851 $(208,854)$(43,084)$4,583 $681,701 
Net income— — — 18,156 — — — 18,156 
Other comprehensive income— — — — — (1,469)— (1,469)
Cash dividends declared ($0.120 per share)
— — — (2,452)— — — (2,452)
Stock-based compensation activity  1,458 (28)(18)— — 1,412 
Payments of withholding taxes for stock-based compensation awards  — — (12)— — (12)
Directors’ deferred compensation1 1 53 — (68)— 107 92 
Balance at October 1, 202120,439 (6,709)$269,716 $676,527 $(208,952)$(44,553)$4,690 $697,428 



6


Common SharesShareholders' Equity
(Thousands, except per share amounts)Common SharesCommon Shares Held in TreasuryCommon
Stock
Retained
Earnings
Common
Stock in
Treasury
Accumulated Other
Comprehensive
Loss
Other
Equity
Total
Balance at December 31, 202120,448 (6,700)$271,978 $693,756 $(209,920)$(40,169)$4,795 $720,440 
Net income— — — 57,226 — — — 57,226 
Other comprehensive loss— — — — — (6,411)— (6,411)
Cash dividends declared ($0.370 per share)
— — — (7,584)— — — (7,584)
Stock-based compensation activity115 115 11,938 (115)(5,941)— — 5,882 
Payments of withholding taxes for stock-based compensation awards(37)(37)— — (3,056)— — (3,056)
Directors’ deferred compensation2 2 108 — (302)— 374 180 
Balance at September 30, 202220,528 (6,620)$284,024 $743,283 $(219,219)$(46,580)$5,169 $766,677 
Balance at December 31, 202020,328 (6,820)$258,642 $631,058 $(199,187)$(38,639)$3,756 $655,630 
Net income— — — 52,791 — — — 52,791 
Other comprehensive loss— — — — — (5,914)— (5,914)
Cash dividends declared ($0.355 per share)
— — — (7,243)— — — (7,243)
Stock-based compensation activity152 152 10,932 (79)(5,929)— — 4,924 
Payments of withholding taxes for stock-based compensation awards(45)(45)— — (3,033)— — (3,033)
Directors’ deferred compensation4 4 $142 $— $(803)$— $934 $273 
Balance at October 1, 202120,439 (6,709)$269,716 $676,527 $(208,952)$(44,553)$4,690 $697,428 
















See notes to these consolidated financial statements.


7


Materion Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)

Note A — 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.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2021 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.

The amounts reflected in Note B of the consolidated financial statements are the results of a preliminary purchase price allocation and will be updated upon completion of the final valuation. The Company is required to complete the purchase price allocation within 12 months of the acquisition date. If such completion of the allocation results in a change in the preliminary values, the measurement period adjustment will be recognized in the period in which the adjustment amount is determined.

New Pronouncements 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 has applied this guidance in accounting for the interest rate swap discussed in Note N. Any additional reference rate reform impacts will be accounted for in accordance with ASU 2020-04.

New Accounting Guidance Issued and Not Yet Adopted:
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832). ASU 2021-10 is intended to increase transparency related to governmental assistance by requiring entities to disclose the types of government assistance, the entity's accounting for government assistance, and the effect of government assistance on an entity's financial statements. This new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021. The Company is in the process of evaluating the impact of the guidance on its annual disclosures, but do not expect material impact to our disclosures at this time.
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.








8


Materion Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)

Note B — Acquisition

On November 1, 2021, the Company acquired the industry-leading electronic materials business of H.C. Starck Group GmbH (HCS-Electronic Materials) for a cash purchase price of approximately $398.9 million, on a cash-free, debt-free basis, subject to a customary purchase price adjustment mechanism. During the nine months ended September 30, 2022, acquisition-related inventory step-up expense was $7.5 million and classified in Cost of Sales and transaction and integration costs were $3.3 million and classified in Selling, General and Administrative expenses in the accompanying consolidated statements of income. The Company financed the purchase price for the HCS-Electronic Materials acquisition with a new $300 million five-year term loan pursuant to a delayed draw term loan facility executed in October 2021 and $103 million of borrowings under its amended revolving credit facility. The maturity date on the revolving credit facility was also extended to October 2026. The interest rate for the term loan is based on LIBOR plus a tiered credit spread that is indexed to the Company's quarterly leverage ratio. This acquired business operates within the Performance Materials and Electronic Materials segments, and the results of operations are included as of the date of acquisition. The combination of Materion and HCS-Electronic Materials enhances the Company's position as the leading supplier to the high growth semiconductor industry.

The fair value estimates of the assets acquired are subject to adjustment during the measurement period (up to one year from the HCS-Electronic Materials acquisition date). The primary areas of accounting for the HCS-Electronic Materials Acquisition that are not yet finalized relate to the fair value of contingencies, income tax accruals, and the impact on residual goodwill. The fair values of these net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While we believe that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, we will evaluate any additional information prior to finalization of the fair value. During the measurement period, we will adjust preliminary valuations assigned to assets and liabilities if new information is obtained about facts and circumstances that existed as of the HCS-Electronic Materials acquisition date that, if known, would have resulted in revised values for these items as of that date. The impact of all changes, if any, that do not qualify as measurement period adjustments will be included in current period earnings.

During the period subsequent to the HCS-Electronic Materials acquisition, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period. Additionally, we paid a working capital true-up of approximately $3.0 million during the second quarter of 2022, which increased the total purchase price. The preliminary purchase price allocation for the acquisition including these measurement period adjustments is as follows:


9


Materion Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
(Thousands)Initial Allocation of ConsiderationMeasurement Period AdjustmentsUpdated Allocation
Assets:
Cash and cash equivalents$3,685 $ $3,685 
Accounts receivable28,352 (132)28,220 
Inventories70,681  70,681 
Prepaid and other current assets660 (355)305 
Property, plant, and equipment 44,681 355 45,036 
Operating lease, right-of-use assets6,120  6,120 
Intangible assets107,800  107,800 
Other long-term assets4,528  4,528 
Goodwill178,181 4,010 182,191 
Total assets acquired$444,688 $3,878 $448,566 
Liabilities:
Accounts payable$12,139 $$12,139 
Salaries and wages2,516 6253,141 
Other liabilities and accrued items28 28 
Income taxes2,183 792,262 
Other long-term liabilities5,543 2155,758 
Operating lease liabilities6,042 6,042 
Deferred income taxes20,300 20,300 
Total liabilities assumed$48,751 $919 $49,670 
Net assets acquired$395,937 $2,959 $398,896 

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

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

As part of the acquisition, the Company recorded approximately $182.2 million of goodwill allocated between its Electronic Materials and Performance Materials segments based on the relative fair values. Goodwill was calculated as the excess of the purchase price over the estimated fair values of the tangible net assets and intangible assets acquired and primarily attributable to the synergies expected to arise after the acquisition date. The goodwill is not expected to be deductible for U.S. tax purposes.

The following table reports the intangible assets by asset category as of the closing date:


10


Materion Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
(Thousands)Value at AcquisitionUseful Life
Customer relationships$50,200 13 years
Technology35,300 13 years
Trade name22,300 15 years
Total$107,800 

The amounts of revenue and income (loss) before taxes of HCS-Electronic Materials in the third quarter of 2022 consolidated statements are $49.2 million and $4.4 million, respectively. For the nine months ended September 30, 2022, revenue and income before taxes total $135.7 million and $10.5 million, respectively. Income before taxes includes the purchase accounting inventory step-up expense recorded in the first quarter of 2022. Had the HCS-Electronic Materials acquisition occurred as of the beginning of fiscal 2020, the Company's sales and income (loss) before taxes would have been as follows:
(Unaudited)
Three months endedNine months ended
October 1, 2021October 1, 2021
Net Sales$428,864 $1,223,450 
Income before taxes$23,022 $65,926 

The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the acquisition occurred on January 1, 2020. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. The transaction accounting adjustments and other adjustments are based on available information and assumptions that the Company’s management believes are reasonable. Such adjustments are estimates and actual experience may differ from expectations. The pro forma income before taxes for the third quarter ended and nine months ended October 1, 2021 includes approximately $2.5 million and $8.1 million, respectively, of additional interest expense related to committed financing to fund the acquisition and acquisition-related intangible asset amortization expense of $2.0 million and $6.0 million, respectively, as if the acquisition occurred on January 1, 2020.


Note C — Segment Reporting
 
The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. The Company believes these names better represent the markets served and the advanced next-generation product solutions provided to our customers. Other than the name changes, there were no changes in the composition or structure of the Company's reportable segments in the first half of 2022.

The Company has the following reportable segments: Performance Materials, Electronic 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 Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes.

Electronic Materials produces advanced chemicals, 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 braze materials, and ultra-fine wire.

Precision Optics produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials.


11

Materion Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)

The Other reportable segment includes unallocated corporate costs and assets.

Beginning with the first quarter of 2022, the Company began using earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) as the main operating income metric used by management to measure the financial performance of the Company and each segment. The Company made this change because recent acquisitions have resulted in increased purchase accounting amortization expense, which in turn has affected the comparability of results across periods and when compared to other companies. Management believes EBITDA is useful to investors as it better represents the Company's performance, excluding the effect of the recent acquisition of significant intangible assets that are now being amortized. EBITDA is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP.

The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for the third quarter of 2022 and 2021:

(Thousands)Third Quarter 2022Third Quarter 2021First Nine Months 2022First Nine Months 2021
Net sales:
Performance Materials(1)
$169,357 $136,096 $473,876 $375,533 
Electronic Materials(1)
230,841 220,723 762,649 638,481 
Precision Optics27,993 31,209 86,006 99,399 
Other    
Net sales428,191 388,028 1,322,531 1,113,413 
Segment EBITDA:
Performance Materials$28,866 $28,917 $80,886 $68,027 
Electronic Materials16,853 11,326 51,338 32,668 
Precision Optics3,546 6,228 9,281 19,246 
Other(5,839)(10,617)(18,206)(22,030)
Total Segment EBITDA43,426 35,854 123,299 97,911 
Income tax expense4,432 3,422 12,525 10,162 
Interest expense - net5,888 861 14,325 2,480 
Depreciation, depletion and amortization13,154 $13,415 $39,223 $32,478 
Net income$19,952 $18,156 $57,226 $52,791 

(1) Excludes inter-segment sales of $0.2 million for the third quarter of 2022 and $0.6 million for the first nine months of 2022 for Performance Materials and $3.8 million for the third quarter of 2022 and $12.1 million for the first nine months of 2022 for Electronic Materials. Inter-segment sales are eliminated in consolidation.












12

Materion Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2022 and 2021:
 (Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsOtherTotal
Third Quarter 2022
End Market
Semiconductor$2,410 $185,223