XML 52 R29.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
In the fourth quarter of 2024, the Company announced an internal reorganization, combining two complementary divisions into one and realigning its customer facing organization. Our business is now organized and operated in two operating segments as discussed below. All prior periods have been recast to reflect the change. These segments share common business systems and processes, technology centers and technology roadmaps. With our complementary capabilities, we believe we are uniquely positioned to create new, co-optimized and increasingly integrated solutions for our customers, which should translate into improved device performance, lower cost of ownership and faster time to market.

•The Materials Solutions segment, or MS, provides materials-based solutions, such as chemical vapor and atomic layer deposition materials, chemical mechanical planarization (“CMP”) slurries and pads, ion implantation specialty gases, formulated etch and clean materials, and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership.
•The Advanced Purity Solutions segment, or APS, offers filtration, purification and contamination-control solutions that improve customers’ yield, device reliability and cost by ensuring the purity of critical liquid chemistries and gases and the cleanliness of wafers and other substrates used throughout semiconductor manufacturing processes, the semiconductor ecosystem and other high-technology industries.

The Company's method for measuring profitability on a reportable segment basis is segment profit. Segment profit is defined as net sales less direct and indirect segment operating expenses, including certain general and administrative costs for the Company’s human resources, finance and information technology functions. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties. Inter-segment sales are presented as an elimination below. The remaining unallocated expenses consist mainly of the Company’s corporate functions as well as interest expense, interest income, amortization of intangible assets and income tax expense.
The Company's chief operating decision maker (CODM) is the President and Chief Executive Officer. For each of the reportable segments, the CODM uses segment profit (based on each segment’s target model) for determining the allocation of resources (including employees, financial, or capital resources) to the segments to achieve the Company's strategic plan and to assess the performance of each segment by monitoring actual results against performance targets established in the Company's annual budget and forecasting process. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not regularly reviewed by the Company’s CODM.

Summarized financial information for the Company’s reportable segments is shown in the following tables for the years ended December 31, 2024, 2023 and 2022:
2024
(In thousands)MSAPSInter-segmentTotal
Net sales$1,400,082 $1,850,199 $(9,073)$3,241,208 
Cost of sales769,182 994,380 (9,073)1,754,489 
Operating expenses344,680 359,688 — 704,368 
Segment profit$286,220 $496,131 $— $782,351 

2023
(In thousands)MSAPSInter-segmentTotal
Net sales$1,689,467 $1,846,596 $(12,137)$3,523,926 
Cost of sales1,060,639 977,819 (12,137)2,026,321 
Operating expenses332,453 337,329 — 669,782 
Segment profit$296,375 $531,448 $— $827,823 

2022
(In thousands)MSAPSInter-segmentTotal
Net sales$1,380,208 $1,913,985 $(12,160)$3,282,033 
Cost of sales892,801 1,004,979 (12,160)1,885,620 
Operating expenses268,218 313,793 — 582,011 
Segment profit$219,189 $595,213 $— $814,402 

The following table reconciles total segment profit to income before income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022:
(In thousands)202420232022
Total segment profit$782,351 $827,823 $814,402 
Less:
Amortization of intangibles190,119 214,477 143,953 
Unallocated general and administrative expenses58,310 114,188 190,468 
Operating income$533,922 $499,158 479,981 
Interest expense215,217 312,378 212,669 
Interest income(7,368)(11,257)(3,694)
Other expense, net4,021 25,367 23,926 
Income before income tax expense (benefit)$322,052 $172,670 $247,080 


The following tables summarize depreciation and capital expenditures for the Company’s reportable segments for the years ended December 31, 2024, 2023 and 2022:
(In thousands)202420232022
Depreciation:
MS$90,242 $95,373 $82,841 
APS97,878 77,310 52,530 
Total depreciation $188,120 $172,683 $135,371 
(In thousands)202420232022
Capital expenditures:
MS$86,694 $141,851 $151,331 
APS228,912 314,996 314,861 
Total capital expenditures$315,606 $456,847 $466,192 

In the following tables, revenue is disaggregated by country or region based on the ship to location of the customer for the years ended December 31, 2024, 2023 and 2022:
2024
(In thousands)MSAPSInter-segmentTotal
North America$316,010 $364,718 $(9,073)$671,655 
Taiwan238,835 423,869 — 662,704 
South Korea202,555 216,195 — 418,750 
Japan128,537 180,857 — 309,394 
China256,966 414,253 — 671,219 
Europe115,755 159,733 — 275,488 
Southeast Asia141,424 90,574 — 231,998 
$1,400,082 $1,850,199 $(9,073)$3,241,208 
2023
(In thousands)MSAPSInter-segmentTotal
North America$540,347 $363,042 $(12,137)$891,252 
Taiwan231,982 358,651 — 590,633 
South Korea218,192 224,993 — 443,185 
Japan104,977 262,331 — 367,308 
China196,970 369,934 — 566,904 
Europe229,368 172,982 — 402,350 
Southeast Asia167,631 94,663 — 262,294 
$1,689,467 $1,846,596 $(12,137)$3,523,926 
2022
(In thousands)MSAPSInter-segmentTotal
North America$422,185 $385,634 $(12,160)$795,659 
Taiwan202,565 457,562 — 660,127 
South Korea162,601 251,476 — 414,077 
Japan107,239 242,763 — 350,002 
China198,022 303,934 — 501,956 
Europe150,914 174,101 — 325,015 
Southeast Asia136,682 98,515 — 235,197 
$1,380,208 $1,913,985 $(12,160)$3,282,033 
The following table summarizes property, plant and equipment, net, attributed to significant countries for the years ended December 31, 2024, 2023 and 2022:
(In thousands)202420232022
Property, plant and equipment, net:
North America$876,767 $747,823 $776,913 
South Korea117,662 101,107 84,253 
Japan114,770 118,872 104,282 
Malaysia44,258 50,183 46,703 
China30,380 32,884 31,592 
Taiwan434,641 412,346 253,285 
Other4,448 4,828 96,309 
$1,622,926 $1,468,043 $1,393,337 

The Company reported net sales of 10 percent or more for one customer in the amount of $508.0 million, $382.9 million and $408.6 million for the years ended December 31, 2024, 2023 and 2022, respectively, all of which include sales from all the Company’s segments.