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Business Segment and Geographic Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Business Segment and Geographic Information
(15)
Business Segment and Geographic Information

The Company has three reportable segments: VSD, PSD and MSD. The Company’s 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 and allocate resources to the three segments.

Reportable Segments

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, temperature sensing, and vacuum technology.

PSD provides a full range of solutions including lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, opto-mechanical components, optical elements, laser-based systems for flexible printed circuit board (“PCB”) processing, and laser-based systems for high density interconnect PCB and package substrate manufacturing.

MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. 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 similar products within its three reportable segments.

During the quarter ended March 31, 2024, the Company moved its OSP product line from the PSD segment to the VSD segment. The purpose of this realignment was to better align the OSP products with semiconductor related products within the VSD segment. Prior periods have been recast to reflect this change.

The following table sets forth net revenues by reportable segment:

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

VSD

 

$

332

 

 

$

304

 

PSD

 

 

254

 

 

 

186

 

MSD

 

 

282

 

 

 

304

 

 

$

868

 

 

$

794

 

The following table reconciles gross profit by reportable segment to net income (loss):

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Gross profit by reportable segment:

 

 

 

 

 

 

VSD

 

$

140

 

 

$

113

 

PSD

 

 

118

 

 

 

75

 

MSD

 

 

157

 

 

 

147

 

Total gross profit by reportable segment

 

 

415

 

 

 

335

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

70

 

 

 

72

 

Selling, general and administrative

 

 

170

 

 

 

174

 

Acquisition and integration costs

 

 

1

 

 

 

6

 

Restructuring

 

 

3

 

 

 

1

 

Fees and expenses related to amendments to the Term Loan Facility

 

 

3

 

 

 

—

 

Amortization of intangible assets

 

 

62

 

 

 

81

 

Income from operations

 

 

106

 

 

 

1

 

Interest income

 

 

(6

)

 

 

(3

)

Interest expense

 

 

87

 

 

 

85

 

Loss on extinguishment of debt

 

 

9

 

 

 

—

 

Other (income) expense, net

 

 

(3

)

 

 

(2

)

Income (loss) before income taxes

 

 

19

 

 

 

(79

)

Provision (benefit) for income taxes

 

 

4

 

 

 

(37

)

Net income (loss)

 

$

15

 

 

$

(42

)

 

Interest income, interest expense and income tax provision (benefit) are not presented by reportable segment because the necessary information is not classified within the segments nor used by the CODM.

The following table sets forth segment assets by reportable segment:

March 31, 2024

 

Accounts
 receivable, net

 

 

Inventories

 

 

Total

 

VSD

 

$

173

 

 

$

541

 

 

$

714

 

PSD

 

 

172

 

 

 

275

 

 

 

447

 

MSD

 

 

231

 

 

 

155

 

 

 

386

 

Total segment assets

 

$

576

 

 

$

971

 

 

$

1,547

 

 

December 31, 2023

 

Accounts
 receivable, net

 

 

Inventories

 

 

Total

 

VSD

 

$

181

 

 

$

553

 

 

$

734

 

PSD

 

 

171

 

 

 

283

 

 

 

454

 

MSD

 

 

251

 

 

 

155

 

 

 

406

 

Total segment assets

 

$

603

 

 

$

991

 

 

$

1,594

 

The following table reconciles total segment assets to total assets:

 

 

March 31, 2024

 

 

December 31, 2023

 

Total segment assets

 

$

1,547

 

 

$

1,594

 

Cash and cash equivalents and short-term investments

 

 

846

 

 

 

875

 

Other current assets

 

 

268

 

 

 

227

 

Property, plant and equipment, net

 

 

766

 

 

 

784

 

Right-of-use assets, net

 

 

227

 

 

 

225

 

Goodwill and intangible assets, net

 

 

5,012

 

 

 

5,173

 

Other assets

 

 

265

 

 

 

240

 

Total assets

 

$

8,931

 

 

$

9,118

 

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 March 31,

 

Net revenues:

 

2024

 

 

2023

 

United States

 

$

308

 

 

$

254

 

China

 

 

157

 

 

 

147

 

Germany

 

 

73

 

 

 

73

 

South Korea

 

 

72

 

 

 

74

 

Japan

 

 

49

 

 

 

50

 

Other

 

 

209

 

 

 

196

 

 

$

868

 

 

$

794

 

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

Long-lived assets:

 

March 31, 2024

 

 

December 31, 2023

 

United States

 

$

461

 

 

$

459

 

China

 

 

166

 

 

 

163

 

Germany

 

 

141

 

 

 

149

 

Other

 

 

317

 

 

 

326

 

 

$

1,085

 

 

$

1,097

 

 

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

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross goodwill, at December 31, 2023

 

$

359

 

 

$

1,007

 

 

$

3,021

 

 

$

4,387

 

Foreign currency translation

 

 

(1

)

 

 

(1

)

 

 

(41

)

 

 

(43

)

Gross goodwill, at March 31, 2024

 

 

358

 

 

 

1,006

 

 

 

2,980

 

 

 

4,344

 

Accumulated goodwill impairment, at December 31, 2023 and March 31, 2024

 

 

(141

)

 

 

(390

)

 

 

(1,302

)

 

 

(1,833

)

Goodwill, net of accumulated impairment and foreign currency translation, at March 31, 2024

 

$

217

 

 

$

616

 

 

$

1,678

 

 

$

2,511