XML 34 R24.htm IDEA: XBRL DOCUMENT v3.21.2
Business Segment, Geographic Area, and Significant Customer Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Business Segment, Geographic Area, and Significant Customer Information

17)

Business Segment, Geographic Area, 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, temperature sensing, 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, and 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 temperature sensing, lasers, photonics, optics, precision motion control and vibration control.

The Equipment & Solutions segment provides a range of products including laser-based systems for printed circuit board (“PCB”) manufacturing, which includes 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 groups its similar products within its three reportable segments.

The following table sets forth net revenues by reportable segment:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Vacuum & Analysis

 

$

483.1

 

 

$

361.3

 

 

$

1,376.6

 

 

$

995.1

 

Light & Motion

 

 

208.7

 

 

 

175.9

 

 

 

583.6

 

 

 

507.3

 

Equipment & Solutions

 

 

50.1

 

 

 

52.6

 

 

 

225.5

 

 

 

167.4

 

 

 

$

741.9

 

 

$

589.8

 

 

$

2,185.7

 

 

$

1,669.8

 

 

 

 

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gross profit by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacuum & Analysis

 

$

226.3

 

 

$

163.5

 

 

$

643.8

 

 

$

444.1

 

Light & Motion

 

 

100.6

 

 

 

76.0

 

 

 

272.6

 

 

 

227.8

 

Equipment & Solutions

 

 

21.5

 

 

 

22.5

 

 

 

109.3

 

 

 

76.0

 

Total gross profit by reportable segment

 

 

348.4

 

 

 

262.0

 

 

 

1,025.7

 

 

 

747.9

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

51.7

 

 

 

42.5

 

 

 

148.9

 

 

 

127.7

 

Selling, general and administrative

 

 

95.8

 

 

 

87.0

 

 

 

288.9

 

 

 

260.3

 

Acquisition and integration costs

 

 

8.6

 

 

 

0.5

 

 

 

20.8

 

 

 

3.4

 

Restructuring and other

 

 

2.0

 

 

 

3.1

 

 

 

9.9

 

 

 

6.8

 

Amortization of intangible assets

 

 

15.0

 

 

 

12.5

 

 

 

40.1

 

 

 

42.6

 

Asset impairment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.2

 

COVID-19 related net credits

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.2

)

Income from operations

 

 

175.3

 

 

 

116.4

 

 

 

517.1

 

 

 

307.1

 

Interest income

 

 

0.1

 

 

 

0.1

 

 

 

0.4

 

 

 

1.1

 

Interest expense

 

 

6.3

 

 

 

6.6

 

 

 

19.1

 

 

 

22.7

 

Other expense, net

 

 

2.9

 

 

 

1.1

 

 

 

11.5

 

 

 

3.0

 

Income before income taxes

 

 

166.2

 

 

 

108.8

 

 

 

486.9

 

 

 

282.5

 

Provision for income taxes

 

 

33.8

 

 

 

17.1

 

 

 

85.7

 

 

 

48.0

 

Net income

 

$

132.4

 

 

$

91.7

 

 

$

401.2

 

 

$

234.5

 

 

The following table sets forth capital expenditures by reportable segment for the three and nine months ended September 30, 2021 and 2020:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacuum & Analysis

 

$

10.8

 

 

$

9.7

 

 

$

27.2

 

 

$

28.8

 

Light & Motion

 

 

8.3

 

 

 

12.9

 

 

 

25.0

 

 

 

21.4

 

Equipment & Solutions

 

 

1.4

 

 

 

6.4

 

 

 

11.1

 

 

 

9.7

 

Total capital expenditures

 

$

20.5

 

 

$

29.0

 

 

$

63.3

 

 

$

59.9

 

 

The following table sets forth depreciation and amortization by reportable segment for the three and nine months ended September 30, 2021 and 2020:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacuum & Analysis

 

$

5.1

 

 

$

5.1

 

 

$

17.3

 

 

$

15.1

 

Light & Motion

 

 

13.5

 

 

 

9.6

 

 

 

32.3

 

 

 

33.5

 

Equipment & Solutions

 

 

8.8

 

 

 

8.6

 

 

 

26.5

 

 

 

27.2

 

Total depreciation and amortization

 

$

27.4

 

 

$

23.3

 

 

$

76.1

 

 

$

75.8

 

 

Total income tax expense is not presented by reportable segment because the necessary information is not available nor used by the CODM.

The following table sets forth segment assets by reportable segment:

 

September 30, 2021

 

Vacuum & Analysis

 

 

Light & Motion

 

 

Equipment

& Solutions

 

 

Corporate,

Eliminations & Other

 

 

Total

 

Segment assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

292.2

 

 

$

139.1

 

 

$

36.7

 

 

$

(24.6

)

 

$

443.4

 

Inventories

 

 

317.9

 

 

 

170.9

 

 

 

64.1

 

 

 

(2.5

)

 

 

550.4

 

Total segment assets

 

$

610.1

 

 

$

310.0

 

 

$

100.8

 

 

$

(27.1

)

 

$

993.8

 

 

December 31, 2020

 

Vacuum & Analysis

 

 

Light & Motion

 

 

Equipment

& Solutions

 

 

Corporate,

Eliminations & Other

 

 

Total

 

Segment assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

229.1

 

 

$

122.6

 

 

$

51.7

 

 

$

(10.7

)

 

$

392.7

 

Inventories

 

 

273.3

 

 

 

166.1

 

 

 

63.7

 

 

 

(1.7

)

 

 

501.4

 

Total segment assets

 

$

502.4

 

 

$

288.7

 

 

$

115.4

 

 

$

(12.4

)

 

$

894.1

 

 

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

 

 

 

September 30, 2021

 

 

December 31, 2020

 

Total segment assets

 

$

993.8

 

 

$

894.1

 

Cash and cash equivalents and short-term investments

 

 

879.6

 

 

 

836.0

 

Other current assets

 

 

121.5

 

 

 

74.3

 

Property, plant and equipment, net

 

 

316.8

 

 

 

284.3

 

Right-of-use assets

 

 

184.5

 

 

 

184.4

 

Goodwill and intangible assets, net

 

 

1,815.7

 

 

 

1,578.6

 

Other assets and long-term investments

 

 

54.0

 

 

 

52.1

 

Consolidated total assets

 

$

4,365.9

 

 

$

3,903.8

 

 

Geographic Area

Information about the Company’s operations by geographic area 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.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

348.4

 

 

$

281.2

 

 

$

922.7

 

 

$

757.7

 

South Korea

 

 

90.6

 

 

 

65.8

 

 

 

292.6

 

 

 

206.8

 

China

 

 

80.4

 

 

 

67.6

 

 

 

263.5

 

 

 

192.5

 

Taiwan

 

 

44.1

 

 

 

27.8

 

 

 

164.8

 

 

 

73.3

 

Japan

 

 

46.9

 

 

 

39.9

 

 

 

141.2

 

 

 

117.1

 

Other Asia

 

 

74.0

 

 

 

59.4

 

 

 

228.4

 

 

 

175.3

 

Europe

 

 

57.5

 

 

 

48.1

 

 

 

172.5

 

 

 

147.1

 

 

 

$

741.9

 

 

$

589.8

 

 

$

2,185.7

 

 

$

1,669.8

 

 

Long-lived assets:(1)

 

September 30, 2021

 

 

December 31, 2020

 

North America

 

$

402.4

 

 

$

364.0

 

Europe

 

 

34.5

 

 

 

45.1

 

Asia

 

 

102.1

 

 

 

94.8

 

 

 

$

539.0

 

 

$

503.9

 

 

 

(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 the Company’s reportable segments is as follows:

 

 

 

September 30, 2021

 

 

December 31, 2020

 

Reportable segment:

 

 

 

 

 

 

 

 

Vacuum & Analysis

 

$

195.2

 

 

$

196.2

 

Light & Motion

 

 

556.3

 

 

 

395.3

 

Equipment & Solutions

 

 

474.7

 

 

 

474.9

 

Total goodwill

 

$

1,226.2

 

 

$

1,066.4

 

 

Major Customers

The following customers represented greater than 10% of the Company’s net revenues as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Lam Research Corporation

 

 

18.4

%

 

 

14.1

%

 

 

14.6

%

 

 

12.3

%

Applied Materials, Inc.

 

 

10.6

%

 

 

11.0

%

 

 

10.7

%

 

 

10.8

%