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Foreign Operations, Geographic Area and Product Segment Information
 12 Months Ended
Dec. 31, 2013
Foreign Operations, Geographic Area and Product Segment Information  
Foreign Operations, Geographic Area and Product Segment Information

11.  Foreign Operations, Geographic Area and Product Segment Information

 

Net sales which are attributed to the geographic location in which the customer facility is located and long-lived tangible assets related to operations in the United States and other foreign countries as of and for the years ended December 31, 2013, 2012 and 2011 are as follows (in thousands):

 

 

 

Net Sales to Unaffiliated

 

 

 

 

 

 

 

 

 

Customers

 

Long-Lived Tangible Assets

 

 

 

2013

 

2012

 

2011

 

2013

 

2012

 

2011

 

Americas (1)

 

$

57,609

 

$

83,317

 

$

100,635

 

$

66,002

 

$

74,497

 

$

67,788

 

Europe, Middle East and Africa (1)

 

21,941

 

41,708

 

57,617

 

95

 

36

 

203

 

Asia Pacific (1)

 

252,199

 

390,995

 

820,883

 

23,042

 

23,769

 

20,417

 

 

 

$

331,749

 

$

516,020

 

$

979,135

 

$

89,139

 

$

98,302

 

$

88,408

 

 

(1) For the year ended December 31, 2013, net sales to customers in China were 44.8% of total net sales. For the year ended December 31, 2012, net sales to customers in China and Taiwan were 42.0% and 11.4% of total net sales, respectively. For the year ended December 31, 2011, net sales to customers in China were 66.4% of total net sales. No other country in Europe, Middle East, and Africa (“EMEA”) and Asia Pacific (“APAC”) accounted for more than 10% of our net sales for the years presented. A minimal amount, less than 1%, of sales included within the Americas caption above have been derived from other regions outside of the United States.

 

We have five identified reporting units that we aggregate into two reportable segments: the VIBE and Mechanical reporting units which are reported in our Data Storage segment; and the MOCVD, MBE and ALD reporting units are reported in our LED & Solar segment.  We manage the business, review operating results and assess performance, as well as allocate resources, based upon our reporting units that reflect the market focus of each business. The LED & Solar segment consists of metal organic chemical vapor deposition (“MOCVD”) systems, molecular beam epitaxy (“MBE”) systems, thermal deposition sources and other types of deposition systems as well as newly acquired atomic layer deposition (“ALD”) technology. These systems are primarily sold to customers in the LED, OLED and solar industries, as well as to scientific research customers. This segment has product development and marketing sites in Somerset, New Jersey, Poughkeepsie, New York, St. Paul, Minnesota, Fremont, California, and Korea. During 2011 we discontinued our CIGS solar systems business, located in Tewksbury, Massachusetts and Clifton Park, New York. The Data Storage segment consists of the ion beam etch, ion beam deposition, diamond-like carbon, physical vapor deposition, and dicing and slicing products sold primarily to customers in the data storage industry. This segment has product development and marketing sites in Plainview, New York, Ft. Collins, Colorado and Camarillo, California.

 

We evaluate the performance of our reportable segments based on income (loss) from operations before interest, income taxes, amortization and certain items (“segment profit (loss)”), which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management believes segment profit (loss) reports baseline performance and thus provides useful information. Certain items include restructuring expenses, asset impairment charges, inventory write-offs, equity-based compensation expense and other non-recurring items. The accounting policies of the reportable segments are the same as those described in the summary of critical accounting policies.

 

The following tables present certain data pertaining to our reportable product segments and a reconciliation of segment profit (loss) to income (loss) from continuing operations, before income taxes for the years ended December 31, 2013, 2012 and 2011, and goodwill and total assets as of December 31, 2013 and 2012 (in thousands):

 

 

 

 

 

Data

 

 

 

 

 

 

 

LED & Solar

 

Storage

 

Unallocated

 

Total

 

Year ended December 31, 2013

 

 

 

 

 

 

 

 

 

Net sales

 

$

249,742

 

$

82,007

 

$

—

 

$

331,749

 

Segment loss

 

$

(26,362

)

$

(671

)

$

(22,588

)

$

(49,621

)

Interest income (expense), net

 

—

 

—

 

602

 

602

 

Amortization

 

(4,233

)

(1,294

)

—

 

(5,527

)

Equity-based compensation

 

(5,126

)

(1,703

)

(6,301

)

(13,130

)

Restructuring

 

(1,017

)

(410

)

(58

)

(1,485

)

Asset impairment charge

 

(1,174

)

(46

)

—

 

(1,220

)

Changes in contingent consideration

 

(829

)

—

 

—

 

(829

)

Income (loss) from continuing operations before income taxes

 

$

(38,741

)

$

(4,124

)

$

(28,345

)

$

(71,210

)

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2012

 

 

 

 

 

 

 

 

 

Net sales

 

$

363,181

 

$

152,839

 

$

—

 

$

516,020

 

Segment profit (loss)

 

$

41,603

 

$

25,414

 

$

(4,919

)

$

62,098

 

Interest income (expense), net

 

—

 

—

 

974

 

974

 

Amortization

 

(3,586

)

(1,322

)

—

 

(4,908

)

Equity-based compensation

 

(5,400

)

(1,920

)

(6,534

)

(13,854

)

Restructuring

 

(1,233

)

(2,521

)

(59

)

(3,813

)

Asset impairment charge

 

—

 

(1,335

)

—

 

(1,335

)

Other

 

—

 

(976

)

—

 

(976

)

Income (loss) from continuing operations before income taxes

 

$

31,384

 

$

17,340

 

$

(10,538

)

$

38,186

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2011

 

 

 

 

 

 

 

 

 

Net sales

 

$

827,797

 

$

151,338

 

$

—

 

$

979,135

 

Segment profit (loss)

 

$

267,059

 

$

38,358

 

$

(8,987

)

$

296,430

 

Interest income (expense), net

 

—

 

—

 

(824

)

(824

)

Amortization

 

(3,227

)

(1,424

)

(83

)

(4,734

)

Equity-based compensation

 

(3,473

)

(1,458

)

(7,876

)

(12,807

)

Restructuring

 

(204

)

(12

)

(1,072

)

(1,288

)

Asset impairment charge

 

(584

)

—

 

—

 

(584

)

Other

 

(758

)

—

 

—

 

(758

)

Loss on extinguishment of debt

 

—

 

—

 

(3,349

)

(3,349

)

Income (loss) from continuing operations before income taxes

 

$

258,813

 

$

35,464

 

$

(22,191

)

$

272,086

 

 

Unallocated assets are comprised principally of cash and cash equivalents and short-term investments as of December 31, 2013 and 2012.

 

 

 

LED & Solar

 

Data Storage

 

Unallocated

 

Total

 

As of December 31, 2013

 

 

 

 

 

 

 

 

 

Goodwill

 

$

91,348

 

$

—

 

$

—

 

$

91,348

 

Total assets

 

$

359,464

 

$

37,910

 

$

550,595

 

$

947,969

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

 

 

 

 

 

 

 

 

 

Goodwill

 

$

55,828

 

$

—

 

$

—

 

$

55,828

 

Total assets

 

$

276,352

 

$

38,664

 

$

622,288

 

$

937,304

 

 

Other Segment Data (in thousands):

 

 

 

Year ended December 31,

 

 

 

2013

 

2012

 

2011

 

Depreciation and amortization expense:

 

 

 

 

 

 

 

LED & Solar

 

$

14,365

 

$

12,020

 

$

8,320

 

Data Storage

 

2,907

 

3,008

 

3,245

 

Unallocated

 

1,153

 

1,164

 

1,327

 

Total depreciation and amortization expense

 

$

18,425

 

$

16,192

 

$

12,892

 

Expenditures for long-lived assets:

 

 

 

 

 

 

 

LED & Solar

 

$

6,796

 

$

20,279

 

$

56,141

 

Data Storage

 

1,271

 

3,341

 

2,703

 

Unallocated

 

1,108

 

1,374

 

1,520

 

Total expenditures for long-lived assets

 

$

9,175

 

$

24,994

 

$

60,364