The Company is a global provider of instruments,

systems,

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, electronic control technology, reactive gas generation and delivery, power generation and delivery, vacuum technology, lasers, photonics, optics, precision motion control, vibration control and laser-based

manufacturing systems 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 two then-existing 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, electronic control technology, reactive gas generation and delivery, power generation and delivery 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, optics, precision motion control and vibration control.

The Equipment & Solutions segment provides laser-based manufacturing systems solutions for the micro-machining industry that enable customers to optimize production. The Equipment & Solutions segment’s primary served markets include flexible and rigid PCB processing/fabrication, semiconductor wafer processing, and passive component manufacturing and testing. The Equipment & Solutions segment’s systems 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:


	Years Ended December 31,
	2019		2018		2017
Vacuum & Analysis	$	990,523	$	1,260,862	$	1,207,457
Light & Motion		725,570		814,246		708,520
Equipment & Solutions		183,680		—		—

	$	1,899,773	$	2,075,108	$	1,915,977

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


	Years Ended December 31,
	2019			2018		2017
Gross profit by reportable segment:
Vacuum & Analysis	$	426,464		$	577,552	$	551,078
Light & Motion		336,764			401,924		340,373
Equipment & Solutions		67,203			—		—

Total gross profit by reportable segment		830,431			979,476		891,451
Operating expenses:
Research and development		164,061			135,720		132,555
Selling, general and administrative		330,346			298,118		290,056
Acquisition and integration costs		37,262			3,113		5,332
Restructuring and other		6,983			4,567		3,920
Fees and expenses related to repricing of Term Loan Facility		6,637			378		492
Amortization of intangible assets		67,402			43,521		45,743
Gain on sale of long-lived assets		(6,773	)		—		—
Asset impairment		4,662			—		6,719

Income from operations		219,851			494,059		406,634
Interest income		5,453			5,775		3,021
Interest expense		44,135			16,942		30,990
Gain on sale of business		—			—		74,856
Other expense, net		3,333			1,942		5,896

Income before income taxes		177,836			480,950		447,625
Provision for income taxes		37,450			88,054		108,493

Net income	$	140,386		$	392,896	$	339,132

The

following table set forth capital expenditures by reportable segment for the years

ended December 31, 2019, 2018 and 2017:


	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Total
December 31, 2019:
Capital expenditures	$	34,130	$	23,045	$	6,729	$	63,904

December 31, 2018:
Capital expenditures	$	40,144	$	22,797	$	—	$	62,941

December 31, 2017:
Capital expenditures	$	17,111	$	14,176	$	—	$	31,287

The following table sets forth depreciation and amortization by reportable segment for the years ended December 31, 2019, 2018 and 2017:


	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Total
December 31, 2019:
Depreciation and amortization	$	16,826	$	53,857	$	39,351	$	110,034

December 31, 2018:
Depreciation and amortization	$	20,808	$	59,045	$	—	$	79,853

December 31, 2017:
Depreciation and amortization	$	20,297	$	62,259	$	—	$	82,556

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:


	Vacuum & Analysis		Light & Motion		Equipment & Solutions		Corporate, Eliminations and Other			Total
December 31, 2019:
Segment assets:
Accounts receivable	$	185,889	$	147,150	$	40,125	$	(32,100	)	$	341,064
Inventory		224,815		163,768		73,458		105			462,146

Total segment assets	$	410,704	$	310,918	$	113,583	$	(31,995	)	$	803,210


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


	Years Ended December 31,
	2019		2018
Total segment assets	$	803,210	$	680,143
Cash and cash equivalents and short-term investments		523,989		718,171
Other current assets		106,348		65,790
Property, plant and equipment, net		241,871		194,367
Right-of-use asset		64,497		—
Goodwill and intangible assets, net		1,623,084		906,803
Other assets and long-term assets		53,321		48,972

Consolidated total assets	$	3,416,320	$	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.


	Years Ended December 31,
Net revenues:	2019		2018		2017
United States	$	888,370	$	1,022,660	$	955,284
China		178,618		127,681		97,072
South Korea		167,651		203,567		212,763
Japan		143,081		193,264		167,318
Germany		150,584		159,508		122,339
Other		371,469		368,428		361,201

	$	1,899,773	$	2,075,108	$	1,915,977


	Years Ended December 31,
Long-lived assets:(1)	201 9		201 8
United States	$	208,323	$	146,687
Europe		41,433		26,794
Asia		89,567		50,572

	$	339,323	$	224,053

(1)	Long-lived assets include property, plant and equipment, net, right-of-use assets, and certain other assets, and exclude goodwill, intangible assets and long-term tax-related accounts.

Goodwill associated with each of our reportable segments is as follows:


	Years Ended December 31,
	2019		2018
Reportable segment:
Vacuum & Analysis	$	196,717	$	197,126
Light & Motion		388,463		389,870
Equipment & Solutions		473,274		—

Total goodwill	$	1,058,454	$	586,996

Worldwide Product Information

Worldwide net revenue for each group of

products

as follows:


	Years Ended December 31,
	2019		2018		2017
Advanced Manufacturing Components	$	1,482,808	$	1,835,202	$	1,701,301
Global Service		288,476		239,906		214,676
Advanced Manufacturing Systems		128,489		—		—

	$	1,899,773	$	2,075,108	$	1,915,977

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.

Major Customers

o individual customers

accounted for

greater than 10% of the Company’s net revenues for 2019. Applied Materials, Inc. accounted for 12% and 13% and Lam Research Corporation accounted for 11% and 12% of the Company’s net revenues for the years ended 2018 and 2017, respectively.