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Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information |
21) | Business Segment, Geographic Area, Product Information and Significant Customer Information
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”), which is the Company’s Chief Executive Officer, 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. Reportable Segments 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 a range of products including laser-based systems for PCB manufacturing, which include flexible interconnect PCB processing systems and high density interconnect solutions for rigid PCB manufacturing and substrate processing and multi-layer ceramic capacitor test 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 group s its similar products within its three reportable segments. The following table sets forth net revenues by reportable segment:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Vacuum & Analysis |  | $ | 1,405.9 |  |  | $ | 990.5 |  |  | $ | 1,260.8 |
Light & Motion |  |  | 689.6 |  |  |  | 725.6 |  |  |  | 814.3 |
Equipment & Solutions |  |  | 234.5 |  |  |  | 183.7 |  |  |  | — |
|  | $ | 2,330.0 |  |  | $ | 1,899.8 |  |  | $ | 2,075.1 |
The following table sets forth a reconciliation of segment gross profit to consolidated net income:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Gross profit by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Vacuum & Analysis |  | $ | 633.7 |  |  | $ | 426.4 |  |  | $ | 577.6 |
Light & Motion |  |  | 309.8 |  |  |  | 336.8 |  |  |  | 401.9 |
Equipment & Solutions |  |  | 106.0 |  |  |  | 67.2 |  |  |  | — |
Total gross profit by reportable segment |  |  | 1,049.5 |  |  |  | 830.4 |  |  |  | 979.5 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Research and development |  |  | 173.1 |  |  |  | 164.1 |  |  |  | 135.7 |
Selling, general and administrative |  |  | 353.1 |  |  |  | 330.3 |  |  |  | 298.1 |
Acquisition and integration costs |  |  | 3.8 |  |  |  | 37.3 |  |  |  | 3.1 |
Restructuring and other |  |  | 9.4 |  |  |  | 7.0 |  |  |  | 4.6 |
Amortization of intangible assets |  |  | 55.2 |  |  |  | 67.4 |  |  |  | 43.5 |
Asset impairment |  |  | 2.3 |  |  |  | 4.7 |  |  |  | — |
COVID-19 related net credits |  |  | (1.2 | ) |  |  | — |  |  |  | — |
Fees and expenses related to repricing of Term Loan Facility |  |  | — |  |  |  | 6.6 |  |  |  | 0.4 |
Gain on sale of long-lived assets |  |  | — |  |  |  | (6.8 | ) |  |  | — |
Income from operations |  |  | 453.8 |  |  |  | 219.8 |  |  |  | 494.1 |
Interest income |  |  | 1.4 |  |  |  | 5.4 |  |  |  | 5.8 |
Interest expense |  |  | 29.1 |  |  |  | 44.1 |  |  |  | 16.9 |
Other expense, net |  |  | 3.1 |  |  |  | 3.3 |  |  |  | 2.0 |
Income before income taxes |  |  | 423.0 |  |  |  | 177.8 |  |  |  | 481.0 |
Provision for income taxes |  |  | 72.9 |  |  |  | 37.4 |  |  |  | 88.1 |
Net income |  | $ | 350.1 |  |  | $ | 140.4 |  |  | $ | 392.9 |
The following table set forth capital expenditures by reportable segment for the years ended December 31, 2020, 2019 and 2018:
Capital expenditures: |  | Vacuum & Analysis |  |  | Light & Motion |  |  | Equipment & Solutions |  |  | Total |
December 31, 2020: |  | $ | 36.0 |  |  | $ | 32.1 |  |  | $ | 16.8 |  |  | $ | 84.9 |
December 31, 2019: |  | $ | 34.1 |  |  | $ | 23.0 |  |  | $ | 6.8 |  |  | $ | 63.9 |
December 31, 2018: |  | $ | 40.1 |  |  | $ | 22.8 |  |  | $ | — |  |  | $ | 62.9 |
The following table sets forth depreciation and amortization by reportable segment for the years ended December 31, 2020, 2019 and 2018:
Depreciation and amortization: |  | Vacuum & Analysis |  |  | Light & Motion |  |  | Equipment & Solutions |  |  | Total |
December 31, 2020: |  | $ | 20.3 |  |  | $ | 43.2 |  |  | $ | 35.7 |  |  | $ | 99.2 |
December 31, 2019: |  | $ | 16.8 |  |  | $ | 53.9 |  |  | $ | 39.3 |  |  | $ | 110.0 |
December 31, 2018: |  | $ | 20.8 |  |  | $ | 59.0 |  |  | $ | — |  |  | $ | 79.8 |
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, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 229.1 |  |  | $ | 122.6 |  |  | $ | 51.7 |  |  | $ | (10.7 | ) |  | $ | 392.7 |
Inventory |  |  | 273.3 |  |  |  | 166.1 |  |  |  | 63.7 |  |  |  | (1.7 | ) |  |  | 501.4 |
Total segment assets |  | $ | 502.4 |  |  | $ | 288.7 |  |  | $ | 115.4 |  |  | $ | (12.4 | ) |  | $ | 894.1 |
|  | Vacuum & Analysis |  |  | Light & Motion |  |  | Equipment & Solutions |  |  | Corporate, Eliminations and Other |  |  | Total |
December 31, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 185.9 |  |  | $ | 147.2 |  |  | $ | 40.1 |  |  | $ | (32.1 | ) |  | $ | 341.1 |
Inventory |  |  | 224.8 |  |  |  | 163.7 |  |  |  | 73.5 |  |  |  | 0.1 |  |  |  | 462.1 |
Total segment assets |  | $ | 410.7 |  |  | $ | 310.9 |  |  | $ | 113.6 |  |  | $ | (32.0 | ) |  | $ | 803.2 |
The following is a reconciliation of segment assets to consolidated total assets:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |
Total segment assets |  | $ | 894.1 |  |  | $ | 803.2 |
Cash and cash equivalents and short-term investments |  |  | 836.0 |  |  |  | 524.0 |
Other current assets |  |  | 74.3 |  |  |  | 106.3 |
Property, plant and equipment, net |  |  | 284.3 |  |  |  | 241.9 |
Right-of-use assets |  |  | 184.4 |  |  |  | 64.5 |
Goodwill and intangible assets, net |  |  | 1,578.6 |  |  |  | 1,623.1 |
Other assets and long-term assets |  |  | 52.1 |  |  |  | 53.3 |
Consolidated total assets |  | $ | 3,903.8 |  |  | $ | 3,416.3 |
Geographic Area Information about the Company’s operations by geographic region is presented in the tables below. Net revenues from unaffiliated customers are based on the location in which the sale originated. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues.
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,058.9 |  |  | $ | 888.4 |  |  | $ | 1,022.7 |
South Korea |  |  | 278.8 |  |  |  | 167.7 |  |  |  | 203.6 |
China |  |  | 273.5 |  |  |  | 178.6 |  |  |  | 127.7 |
Other Asia |  |  | 519.6 |  |  |  | 435.8 |  |  |  | 477.1 |
Europe |  |  | 199.2 |  |  |  | 229.3 |  |  |  | 244.0 |
|  | $ | 2,330.0 |  |  | $ | 1,899.8 |  |  | $ | 2,075.1 |
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |
Long-lived assets: (1) |  |  |  |  |  |  |  |
United States |  | $ | 364.0 |  |  | $ | 208.3 |
Asia |  |  | 94.8 |  |  |  | 89.6 |
Europe |  |  | 45.1 |  |  |  | 41.4 |
|  | $ | 503.9 |  |  | $ | 339.3 |
(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. The increase in long-lived assets in the United States for 2020 reflects right-of-use assets from new leases, mainly at three locations.
Goodwill associated with each of the Company’s reportable segments is as follows:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |
Reportable segment: |  |  |  |  |  |  |  |
Vacuum & Analysis |  | $ | 196.2 |  |  | $ | 196.7 |
Light & Motion |  |  | 395.3 |  |  |  | 388.5 |
Equipment & Solutions |  |  | 474.9 |  |  |  | 473.3 |
Total goodwill |  | $ | 1,066.4 |  |  | $ | 1,058.5 |
Major Customers The Company had two customers with net revenues greater than 10% of total net revenues at December 31, 2020 and 2018 as shown below. No individual customers accounted for greater than 10% of the Company’s net revenues for 2019.
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Lam Research Corporation |  | 13.5% |  |  | 8.5% |  |  | 10.8% |
Applied Materials, Inc. |  | 10.6% |  |  | 9.3% |  |  | 11.7% |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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