17)	Business Segment, Geographic Area, Product and Significant Customer Information

The Company is a global provider of instruments, subsystems and process control solutions that measure, monitor, deliver, analyze, power and control critical parameters of advanced manufacturing processes to improve process performance and productivity for its customers. The Company’s products are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control technology, ozone generation and delivery, power, reactive gas generation, vacuum technology, lasers, photonics, sub-micron positioning, vibration control, optics and laser-based manufacturing solutions. The Company also provides services relating to the maintenance and repair of its products, installation services and training. The Company’s primary served markets include semiconductor, industrial technologies, life and health sciences, research and defense.

The Company’s Chief Operating Decision Maker (“CODM”) utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision making process to assess performance. Effective February 1, 2019, in conjunction with its acquisition of ESI, the Company created a third reportable segment known as the Equipment & Solutions segment in addition to its existing two reportable segments: the Vacuum & Analysis segment and the Light & Motion segment.

The Vacuum & Analysis segment provides a broad range of instruments, components and subsystems which are derived from the Company’s core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control technology, ozone generation and delivery, RF & DC power, reactive gas generation and vacuum technology.

The Light & Motion segment provides a broad range of instruments, components and subsystems which are derived from the Company’s core competencies in lasers, photonics, sub-micron positioning, vibration control, and optics.

The Equipment & Solutions segment provides laser-based manufacturing solutions for the micro-machining industry that enable customers to optimize production. The segment’s market is composed primarily of flexible and rigid PCB processing/fabrication, semiconductor wafer processing and passive component manufacturing & test. Equipment & Solutions incorporate specialized laser technology and proprietary control software to efficiently process the materials and components that are an integral part of electronic devices and systems.

The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The accounting policies that the Company uses to derive reportable segment results are substantially the same as those used for external reporting purposes. The Company does not disclose external or intersegment revenues separately by reportable segment as this information is not presented to the CODM for decision making purposes.

The following table sets forth net revenues by reportable segment:


	Three Months Ended March 31,
	2019		2018
Vacuum & Analysis	$	234,355	$	348,344
Light & Motion		193,988		205,931
Equipment & Solutions		35,218		—

	$	463,561	$	554,275

The following table sets forth a reconciliation of segment gross profit to consolidated net income:


	Three Months Ended March 31,
	2019		2018
Gross profit by reportable segment:
Vacuum & Analysis	$	98,139	$	158,500
Light & Motion		92,741		104,355
Equipment & Solutions		7,238		—

Total gross profit by reportable segment		198,118		262,855
Operating expenses:
Research and development		38,933		34,857
Selling, general and administrative		82,455		82,949
Fees and expenses related to incremental term loan		5,847		—
Acquisition and integration costs		30,167		—
Restructuring		223		1,220
Customer contract obligation		1,700		—
Environmental costs		—		1,000
Amortization of intangible assets		15,727		11,190

Income from operations		23,066		131,639
Interest and other expense, net		7,730		4,897

Income before income taxes		15,336		126,742
Provision for income taxes		2,881		21,621

Net income	$	12,455	$	105,121

The following table sets forth capital expenditures by reportable segment for the three months ended March 31, 2019 and 2018:


	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Total
Three Months Ended March 31, 2019:
Capital expenditures	$	7,488	$	5,154	$	1,887	$	14,529

Three Months Ended March 31, 2018:
Capital expenditures	$	6,197	$	3,193	$	—	$	9,390

The following table sets forth depreciation and amortization by reportable segment for the three months ended March 31, 2019 and 2018:


	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Total
Three Months Ended March 31, 2019:
Depreciation and amortization	$	4,045	$	14,140	$	7,026	$	25,211

Three Months Ended March 31, 2018
Depreciation and amortization	$	5,129	$	15,363	$	—	$	20,492

Total income tax expense is not presented by reportable segment because the necessary information is not available or used by the CODM.

The following table sets forth segment assets by reportable segment:


March 31, 2019:	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Corporate, Eliminations & Other			Total
Segment assets:
Accounts receivable	$	160,040	$	139,592	$	51,088	$	(14,730	)	$	335,990
Inventory, net		225,431		164,603		85,690		(91	)		475,633

Total segment assets	$	385,471	$	304,195	$	136,778	$	(14,821	)	$	811,623


December 31, 2018:	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Corporate, Eliminations & Other			Total
Segment assets:
Accounts receivable	$	171,604	$	140,658	$	—	$	(16,808	)	$	295,454
Inventory, net		222,965		161,658		—		66			384,689

Total segment assets	$	394,569	$	302,316	$	—	$	(16,742	)	$	680,143

The following is a reconciliation of segment assets to consolidated total assets:


	March 31, 2019		December 31, 2018
Total segment assets	$	811,623	$	680,143
Cash and cash equivalents and investments		472,692		728,461
Other current assets		86,387		65,790
Property, plant and equipment, net		251,424		194,367
Right-of-use asset		65,628		—
Goodwill and intangible assets, net		1,676,422		906,803
Other assets		48,562		38,682

Consolidated total assets	$	3,412,738	$	2,614,246

Geographic

Information about the Company’s operations in different geographic regions is presented in the tables below. Net revenues to unaffiliated customers are based on the location in which the sale originated. Transfers between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues.


	Three Months Ended March 31,
	2019		2018
Net revenues:
United States	$	224,347	$	276,720
Korea		35,802		54,011
Japan		42,102		58,274
Asia (excluding Korea and Japan)		101,327		101,384
Europe		59,983		63,886

	$	463,561	$	554,275


	March 31, 2019		December 31, 2018
Long-lived assets:⁽¹⁾
United States	$	198,747	$	146,687
Europe		29,983		26,794
Asia		57,523		50,572

	$	286,253	$	224,053

⁽¹⁾	Long-lived assets include property, plant and equipment, net and certain other long-term assets, excluding long-term tax related accounts.

Goodwill associated with each of the Company’s reportable segments is as follows:


	March 31, 2019		December 31, 2018
Reportable segment:
Vacuum & Analysis	$	196,937	$	197,126
Light & Motion		388,896		389,870
Equipment & Solutions		471,498		—

Total goodwill	$	1,057,331	$	586,996

Worldwide Product Information

The Company groups its product offerings into three groups based upon the similarity of product function as follows:


	Three Months Ended March 31,
	2019		2018
Advanced Manufacturing Components	$	371,345	$	496,677
Global Service		66,198		57,598
Advanced Manufacturing Systems		26,018		—

	$	463,561	$	554,275

Advanced manufacturing components are comprised of product revenues from the Company’s Vacuum & Analysis and Light & Motion segments. Global service is comprised of total service revenues for all three of the Company’s reportable segments. Advanced manufacturing systems is comprised of product revenues for the Company’s Equipment & Solutions segment.