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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

Note 6 — Commitments and Contingencies

Leases

The Company’s operating leases primarily include real estate leases for properties used for manufacturing, R&D activities, sales and service, and administration, as well as certain equipment leases. Some leases may include options to renew for a period of up to 5 years, while others may include options to terminate the lease. The weighted average remaining lease term of the Company’s operating leases as of March 31, 2023 was 12 years, and the weighted average discount rate used in determining the present value of future lease payments was 5.6%.

The following table provides the maturities of lease liabilities at March 31, 2023:


		Operating
		Leases
		(in thousands)
Payments due by period:
2023		$	2,782
2024			4,683
2025			4,086
2026			4,053
2027			3,627
Thereafter			34,246
Total future minimum lease payments			53,477
Less: Imputed interest			(16,422)
Total		$	37,055

Reported as of March 31, 2023
Accrued expenses and other current liabilities		$	3,542
Long-term operating lease liabilities			33,513
Total		$	37,055

Operating lease cost for the three months ended March 31, 2023 and 2022 were $1.4 million and $1.9 million, respectively. Variable lease cost for the three months ended March 31, 2023 and 2022 were $0.3 million and $0.5 million respectfully. Additionally, the Company has an immaterial amount of short-term leases. Operating cash outflows from operating leases for the three months ended March 31, 2023 and 2022 were $1.4 million and $1.9 million, respectively.

Receivable Purchase Agreement

In December 2020, the Company entered into a receivable purchase agreement with a financial institution to sell certain of its trade receivables from customers without recourse, up to $15.0 million at any point in time. Pursuant to this agreement, the Company sold $8.3 million of receivables during the three months ended March 31, 2023, all of which remained outstanding as of March 31, 2023 as defined in the receivable purchase agreement, and $6.7 million was available under the agreement for additional sales of receivables. The Company did not sell any receivables under this agreement for the three months ended March 31, 2022. The net sale of accounts receivable under the agreement is reflected as a reduction of accounts receivable in the Company’s Consolidated Balance Sheet at the time of sale and any fees for the sale of trade receivables were not material for the periods presented.

Purchase Commitments

Veeco has purchase commitments of $255.5 million at March 31, 2023, substantially all of which become due within one year.

Bank Guarantees

Veeco has bank guarantees and letters of credit issued by a financial institution on its behalf as needed. At March 31, 2023, outstanding bank guarantees and standby letters of credit totaled $9.9 million, and unused bank guarantees and letters of credit of $12.4 million were available to be drawn upon.

Legal Proceedings

The Company is involved in various legal proceedings arising in the normal course of business. The Company does not believe that the ultimate resolution of these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.