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Assets | 9 Months Ended
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Sep. 30, 2020
Assets |
Assets | Note 3 — Assets ​ Investments ​ Short-term investments are generally classified as available-for-sale and reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income” in the Consolidated Balance Sheets. These securities may include U.S. treasuries, government agency securities, corporate debt, and commercial paper, all with maturities of greater than three months when purchased. All realized gains and losses and unrealized losses resulting from declines in fair value that are other than temporary are included in “Other operating expense (income), net” in the Consolidated Statements of Operations. ​ Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. Veeco classifies certain assets based on the following fair value hierarchy: ​ Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; ​ Level 2: Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and ​ Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. ​ A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Veeco has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions or estimation methodologies could have a significant effect on the estimated fair value amounts. ​ The following table presents the portion of Veeco’s assets that were measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
​ | ​ | (in thousands)
September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash equivalents | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Certificate of deposits and time deposits | ​ | $ | 64,646 | ​ | $ | — | ​ | $ | — | ​ | $ | 64,646
U.S. treasuries | ​ | ​ | 9,999 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,999
Government money market fund | ​ | ​ | 1,180 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,180
Government agency securities | ​ | ​ | — | ​ | ​ | 1,050 | ​ | ​ | — | ​ | ​ | 1,050
Total | ​ | $ | 75,825 | ​ | $ | 1,050 | ​ | $ | — | ​ | $ | 76,875
Short-term investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. treasuries | ​ | $ | 125,346 | ​ | $ | — | ​ | $ | — | ​ | $ | 125,346
Government agency securities | ​ | ​ | — | ​ | ​ | 6,000 | ​ | ​ | — | ​ | ​ | 6,000
Corporate debt | ​ | ​ | — | ​ | ​ | 14,248 | ​ | ​ | — | ​ | ​ | 14,248
Commercial paper | ​ | ​ | — | ​ | ​ | 15,991 | ​ | ​ | — | ​ | ​ | 15,991
Total | ​ | $ | 125,346 | ​ | $ | 36,239 | ​ | $ | — | ​ | $ | 161,585
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash equivalents | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Certificate of deposits and time deposits | ​ | $ | 67,009 | ​ | $ | — | ​ | $ | — | ​ | $ | 67,009
Commercial paper | ​ | ​ | — | ​ | ​ | 10,484 | ​ | ​ | — | ​ | ​ | 10,484
Corporate debt | ​ | ​ | — | ​ | ​ | 1,000 | ​ | ​ | — | ​ | ​ | 1,000
Total | ​ | $ | 67,009 | ​ | $ | 11,484 | ​ | $ | — | ​ | $ | 78,493
Short-term investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. treasuries | ​ | $ | 105,130 | ​ | $ | — | ​ | $ | — | ​ | $ | 105,130
Government agency securities | ​ | ​ | — | ​ | ​ | 1,139 | ​ | ​ | — | ​ | ​ | 1,139
Corporate debt | ​ | ​ | — | ​ | ​ | 6,002 | ​ | ​ | — | ​ | ​ | 6,002
Commercial paper | ​ | ​ | — | ​ | ​ | 2,981 | ​ | ​ | — | ​ | ​ | 2,981
Total | ​ | $ | 105,130 | ​ | $ | 10,122 | ​ | $ | — | ​ | $ | 115,252
​ There were no transfers between fair value measurement levels during the nine months ended September 30, 2020. ​ At September 30, 2020 and December 31, 2019, the amortized cost and fair value of available-for-sale securities consist of: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Gross |  | Gross |  | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Estimated
​ | ​ | Cost | ​ | Gains | ​ | Losses | ​ | Fair Value
​ | ​ | (in thousands)
September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. treasuries | ​ | $ | 125,333 | ​ | $ | 17 | ​ | $ | (4) | ​ | $ | 125,346
Government agency securities | ​ | ​ | 5,995 | ​ | ​ | 5 | ​ | ​ | — | ​ | ​ | 6,000
Corporate debt | ​ | ​ | 14,254 | ​ | ​ | 1 | ​ | ​ | (7) | ​ | ​ | 14,248
Commercial paper | ​ | ​ | 15,986 | ​ | ​ | 7 | ​ | ​ | (2) | ​ | ​ | 15,991
Total | ​ | $ | 161,568 | ​ | $ | 30 | ​ | $ | (13) | ​ | $ | 161,585
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. treasuries | ​ | $ | 105,096 | ​ | $ | 38 | ​ | $ | (4) | ​ | $ | 105,130
Government agency securities | ​ | ​ | 1,139 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,139
Corporate debt | ​ |  | 6,003 | ​ |  | — | ​ |  | (1) | ​ |  | 6,002
Commercial paper | ​ | ​ | 2,981 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,981
Total | ​ | $ | 115,219 | ​ | $ | 38 | ​ | $ | (5) | ​ | $ | 115,252
​ Available-for-sale securities in a loss position at September 30, 2020 and December 31, 2019 consist of: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2020 | ​ | December 31, 2019
​ |  | ​ | ​ |  | Gross |  | ​ |  | Gross
​ | ​ | Estimated | ​ | Unrealized | ​ | Estimated | ​ | Unrealized
​ | ​ | Fair Value | ​ | Losses | ​ | Fair Value | ​ | Losses
​ | ​ | ​ | (in thousands)
U.S. treasuries | ​ | $ | 40,111 | ​ | $ | (4) | ​ | $ | 22,943 | ​ | $ | (4)
Corporate debt | ​ |  | 10,195 | ​ |  | (7) | ​ |  | 6,002 | ​ |  | (1)
Commercial paper | ​ | ​ | 5,995 | ​ | ​ | (2) | ​ | ​ | — | ​ | ​ | —
Total | ​ | $ | 56,301 | ​ | $ | (13) | ​ | $ | 28,945 | ​ | $ | (5)
​ At September 30, 2020 and December 31, 2019, there were no short-term investments that had been in a continuous loss position for more than 12 months. ​ The maturities of securities classified as available-for-sale at September 30, 2020 were all due in one year or less, and an allowance for credit loss is considered unnecessary. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. There were minimal realized gains or losses for the nine months ended September 30, 2020 and no realized gains or losses for the nine months ended September 30, 2019. ​ Accounts Receivable ​ Accounts receivable is presented net of an allowance for doubtful accounts of $0.7 million and $0.6 million at September 30, 2020 and December 31, 2019, respectively. The Company considered its current expectations of future economic conditions, including the impact of COVID-19, when estimating its allowance for doubtful accounts. Inventories ​ Inventories at September 30, 2020 and December 31, 2019 consist of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | December 31,
​ |  | 2020 |  | 2019
​ | ​ | (in thousands)
Materials | ​ | $ | 81,842 | ​ | $ | 82,155
Work-in-process | ​ |  | 56,137 | ​ |  | 42,575
Finished goods | ​ |  | 5,490 | ​ |  | 8,337
Total | ​ | $ | 143,469 | ​ | $ | 133,067
​ Prepaid Expenses and Other Current Assets ​ Prepaid expenses and other current assets primarily consist of supplier deposits, prepaid value-added tax, lease deposits, prepaid insurance, prepaid licenses, and other receivables. Veeco had deposits with its suppliers of $5.0 million and $5.9 million at September 30, 2020 and December 31, 2019, respectively. ​ Assets Held for Sale ​ In the fourth quarter of 2019, the Company determined that one of its non-core product lines (the “disposal group”) met the held for sale criteria, and as such, the related assets were presented as “Assets held for sale” on the Consolidated Balance Sheets as of December 31, 2019. During the second quarter of 2020, the Company completed the sale of this product line for approximately $11.4 million, with approximately 85% of the transaction price received upon closing, and 15% held in escrow for a period of 18 months and included within “Other Assets” in the Consolidated Balance Sheets. Long-lived assets and definite-lived intangible assets were not depreciated or amortized while classified as held for sale. The sale of this disposal group does not represent a strategic shift that will have a material effect on the Company’s operations and financial results, nor is it considered a component of the Company, and as such it did not meet the criteria to be reported as discontinued operations. ​ For the year ended December 31, 2019, the Company recorded a non-cash impairment charge on these assets held for sale of $4.0 million in order to measure the disposal group at the lower of its carrying value or fair value less costs to sell, which resulted in a corresponding held for sale valuation allowance on its assets held for sale in the Consolidated Balance Sheet. During the second quarter of 2020, the Company recorded additional impairment charges of $0.3 million related to the finalization of the sale of this disposal group. The major classes of assets and liabilities that were sold are as follows: ​
​ | ​ | ​ | ​
​ | ​ | ​ | ​
Net assets sold: |  | (in thousands)
Inventories | ​ | $ | 6,311
Property, plant, and equipment, net | ​ | ​ | 372
Intangible assets, net | ​ | ​ | 6,546
Goodwill | ​ | ​ | 2,359
Deferred revenue | ​ | ​ | (59)
Total net assets sold | ​ | $ | 15,529
Net proceeds after costs to sell | ​ | ​ | (11,228)
Total loss on sale of disposal group | ​ | $ | 4,301
​ ​ Property, Plant, and Equipment ​ Property, plant, and equipment at September 30, 2020 and December 31, 2019 consist of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | December 31,
​ |  | 2020 |  | 2019
​ | ​ | (in thousands)
Land | ​ | $ | 5,061 | ​ | $ | 5,061
Building and improvements | ​ |  | 62,796 | ​ |  | 61,884
Machinery and equipment (1) | ​ |  | 137,587 | ​ |  | 137,692
Leasehold improvements | ​ |  | 6,795 | ​ |  | 6,703
Gross property, plant, and equipment | ​ |  | 212,239 | ​ |  | 211,340
Less: accumulated depreciation and amortization | ​ |  | 146,428 | ​ |  | 135,629
Net property, plant, and equipment | ​ | $ | 65,811 | ​ | $ | 75,711
(1) | Machinery and equipment also includes software, furniture and fixtures
​ For the three and nine months ended September 30, 2020, depreciation expense was $3.8 million and $11.5 million, respectively, and $4.2 million and $13.1 million for the comparable 2019 periods. ​ Goodwill ​ Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The Company continues to assess potential triggering events related to the value of its goodwill, including the COVID-19 pandemic, and concluded that there were no indicators of impairment during the nine months ended September 30, 2020. ​ Intangible Assets ​ Intangible assets consist of purchased technology, customer relationships, patents, trademarks and tradenames, and backlog, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined. The Company continues to assess potential triggering events related to the value of its intangible assets, including the COVID-19 pandemic, and concluded that there were no indicators of impairment during the nine months ended September 30, 2020. ​ The components of purchased intangible assets were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2020 | ​ | December 31, 2019
​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​
​ |  | Gross |  | Amortization |  | ​ |  | Gross |  | Amortization |  | ​
​ | ​ | Carrying | ​ | and | ​ | Net | ​ | Carrying | ​ | and | ​ | Net
​ | ​ | Amount | ​ | Impairment | ​ | Amount | ​ | Amount | ​ | Impairment | ​ | Amount
​ | ​ | (in thousands)
Technology | ​ | $ | 327,908 | ​ | $ | 299,710 | ​ | $ | 28,198 | ​ | $ | 327,908 | ​ | $ | 291,766 | ​ | $ | 36,142
Customer relationships | ​ | ​ | 146,465 | ​ | ​ | 129,290 | ​ | ​ | 17,175 | ​ | ​ | 146,465 | ​ | ​ | 126,764 | ​ | ​ | 19,701
Trademarks and tradenames | ​ | ​ | 30,910 | ​ | ​ | 26,274 | ​ | ​ | 4,636 | ​ | ​ | 30,910 | ​ | ​ | 25,256 | ​ | ​ | 5,654
Other | ​ |  | 3,686 | ​ |  | 3,679 | ​ |  | 7 | ​ |  | 3,686 | ​ |  | 3,665 | ​ |  | 21
Total | ​ | $ | 508,969 | ​ | $ | 458,953 | ​ | $ | 50,016 | ​ | $ | 508,969 | ​ | $ | 447,451 | ​ | $ | 61,518
​ Other intangible assets primarily consist of patents, licenses, and backlog.
​ | ​ | ​ | ​
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