XML 40 R27.htm IDEA: XBRL DOCUMENT
v3.22.4

Business Segment, Geographic Area, Product Information and Significant Customer Information | 12 Months Ended
--- | ---
Dec. 31, 2022
Segment Reporting [Abstract] |
Business Segment, Geographic Area, Product Information and Significant Customer Information | 20) Business Segment, Geographic Area, Product Information and Significant Customer Information Reportable Segments and Products 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. The Company has a diverse base of customers across its primary served markets, which include semiconductor, electronics and packaging, and specialty industrial. VSD delivers foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. VSD products 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. PSD provides a full range of solutions including lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, high-speed multilayer ceramic capacitor testing, laser-based systems for high density interconnect PCB and package manufacturing. MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. Atotech is a brand within MSD. Applying a comprehensive systems-and-solutions approach, MSD's portfolio includes chemistry, equipment, software, and services for innovative and high-technology applications in a wide variety of end-markets. 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 product offerings by its reportable segments, VSD, PSD, and MSD. The Company also provides services relating to the maintenance and repair of its products, installation services and training to all three of its reportable segments. The following table sets forth net revenues by reportable segment:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Vacuum Solutions Division |  | $ | 1,966 |  |  | $ | 1,862 |  |  | $ | 1,406 |
Photonics Solutions Division |  |  | 1,064 |  |  |  | 1,088 |  |  |  | 924 |
Materials Solutions Division |  |  | 517 |  |  |  | — |  |  |  | — |
|  | $ | 3,547 |  |  | $ | 2,950 |  |  | $ | 2,330 |
The following table sets forth a reconciliation of segment gross profit to consolidated net income:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Gross profit by reportable segment: |  |  |  |  |  |  |  |  |
Vacuum Solutions Division |  | $ | 856 |  |  | $ | 868 |  |  | $ | 633 |
Photonics Solutions Division |  |  | 499 |  |  |  | 512 |  |  |  | 416 |
Materials Solutions Division |  |  | 192 |  |  |  | — |  |  |  | — |
Total gross profit by reportable segment |  |  | 1,547 |  |  |  | 1,380 |  |  |  | 1,049 |
Operating expenses: |  |  |  |  |  |  |  |  |
Research and development |  |  | 241 |  |  |  | 200 |  |  |  | 173 |
Selling, general and administrative |  |  | 488 |  |  |  | 385 |  |  |  | 353 |
Acquisition and integration costs |  |  | 52 |  |  |  | 30 |  |  |  | 4 |
Restructuring and other |  |  | 10 |  |  |  | 11 |  |  |  | 10 |
Amortization of intangible assets |  |  | 146 |  |  |  | 55 |  |  |  | 55 |
Gain on sale of long-lived assets |  |  | (7 | ) |  |  | — |  |  |  | — |
Income from operations |  |  | 617 |  |  |  | 699 |  |  |  | 454 |
Interest income |  |  | (4 | ) |  |  | — |  |  |  | (1 | )
Interest expense |  |  | 177 |  |  |  | 25 |  |  |  | 29 |
Other expense, net |  |  | 11 |  |  |  | 9 |  |  |  | 3 |
Income before income taxes |  |  | 433 |  |  |  | 665 |  |  |  | 423 |
Provision for income taxes |  |  | 100 |  |  |  | 114 |  |  |  | 73 |
Net income |  | $ | 333 |  |  | $ | 551 |  |  | $ | 350 |
The following table set forth capital expenditures by reportable segment:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Vacuum Solutions Division |  | $ | 96 |  |  | $ | 37 |  |  | $ | 36 |
Photonics Solutions Division |  |  | 40 |  |  |  | 50 |  |  |  | 49 |
Materials Solutions Division |  |  | 28 |  |  |  | — |  |  |  | — |
Total capital expenditures |  | $ | 164 |  |  | $ | 87 |  |  | $ | 85 |
The following table sets forth depreciation and amortization by reportable segment:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Vacuum Solutions Division |  | $ | 24 |  |  | $ | 23 |  |  | $ | 20 |
Photonics Solutions Division |  |  | 88 |  |  |  | 81 |  |  |  | 79 |
Materials Solutions Division |  |  | 104 |  |  |  | — |  |  |  | — |
Total depreciation and amortization |  | $ | 216 |  |  | $ | 104 |  |  | $ | 99 |
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:
|  | Accounts Receivable |  |  | Inventory |  |  | Total |
December 31, 2022 |  |  |  |  |  |  |  |  |
Vacuum Solutions Division |  | $ | 307 |  |  | $ | 491 |  |  | $ | 798 |
Photonics Solutions Division |  |  | 210 |  |  |  | 296 |  |  |  | 506 |
Materials Solutions Division |  |  | 298 |  |  |  | 190 |  |  |  | 488 |
Corporate, Eliminations & Other |  |  | (95 | ) |  |  | — |  |  |  | (95 | )
Total segment assets |  | $ | 720 |  |  | $ | 977 |  |  | $ | 1,697 |
|  | Accounts Receivable |  |  | Inventory |  |  | Total |
December 31, 2021 |  |  |  |  |  |  |  |  |
Vacuum Solutions Division |  | $ | 285 |  |  | $ | 339 |  |  | $ | 624 |
Photonics Solutions Division |  |  | 183 |  |  |  | 239 |  |  |  | 422 |
Materials Solutions Division |  |  | — |  |  |  | — |  |  |  | — |
Corporate, Eliminations & Other |  |  | (25 | ) |  |  | (1 | ) |  |  | (26 | )
Total segment assets |  | $ | 443 |  |  | $ | 577 |  |  | $ | 1,020 |
The following is a reconciliation of segment assets to consolidated total assets:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Total segment assets |  | $ | 1,697 |  |  | $ | 1,020 |
Cash and cash equivalents and short-term investments |  |  | 910 |  |  |  | 1,042 |
Other current assets |  |  | 187 |  |  |  | 85 |
Property, plant and equipment, net |  |  | 800 |  |  |  | 326 |
Right-of-use assets |  |  | 234 |  |  |  | 184 |
Goodwill and intangible assets, net |  |  | 7,481 |  |  |  | 1,804 |
Other assets and long-term assets |  |  | 186 |  |  |  | 79 |
Consolidated total assets |  | $ | 11,495 |  |  | $ | 4,540 |
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, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Net revenues: |  |  |  |  |  |  |  |  |
United States |  | $ | 1,479 |  |  | $ | 1,259 |  |  | $ | 1,059 |
China |  |  | 497 |  |  |  | 355 |  |  |  | 274 |
South Korea |  |  | 360 |  |  |  | 386 |  |  |  | 279 |
Germany |  |  | 243 |  |  |  | 144 |  |  |  | 125 |
Other |  |  | 968 |  |  |  | 806 |  |  |  | 593 |
|  | $ | 3,547 |  |  | $ | 2,950 |  |  | $ | 2,330 |
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.
|  | December 31, |
|  | 2022 |  |  | 2021 |
Long-lived assets: |  |  |  |  |  |
United States |  | $ | 508 |  |  | $ | 412 |
Germany |  |  | 160 |  |  |  | 18 |
China |  |  | 175 |  |  |  | 16 |
Other |  |  | 343 |  |  |  | 128 |
|  | $ | 1,186 |  |  | $ | 574 |
Goodwill associated with each of the Company’s reportable segments is as follows:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Vacuum Solutions Division |  | $ | 195 |  |  | $ | 195 |
Photonics Solutions Division |  |  | 1,026 |  |  |  | 1,033 |
Materials Solutions Division |  |  | 3,087 |  |  |  | — |
Total goodwill |  | $ | 4,308 |  |  | $ | 1,228 |
The Company sells products and services to thousands of customers worldwide, in a wide range of end markets. Revenues from its top ten customers accounted for 42%, 46% and 44% of net revenues for 2022, 2021, and 2020, respectively. The Company had two customers with net revenues greater than or equal to 10% of total net revenues for the years ended December 31, 2022, 2021 and 2020, as shown below.
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Lam Research Corporation |  | 14% |  | 15% |  | 14%
Applied Materials, Inc. |  | 10% |  | 11% |  | 11%

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration