XML 32 R21.htm IDEA: XBRL DOCUMENT v3.19.1
Segment Reporting
 3 Months Ended
Mar. 30, 2019
Segment Reporting
15. Segment Reporting
Intevac’s two reportable segments are: TFE and Photonics. Intevac’s chief operating decision-maker has been identified as the President and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Intevac’s management organization structure as of March 30, 2019 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed.
Each reportable segment is separately managed and has separate financial results that are reviewed by Intevac’s chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker.
Intevac derives the segment results from its internal management reporting system. The accounting policies Intevac uses to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including orders, net revenues and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. Intevac manages certain operating expenses separately at the corporate level. Intevac allocates certain of these corporate expenses to the segments in an amount equal to 3% of net revenues. Segment operating income excludes interest income/expense and other financial charges and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, gains and losses on divestitures and sales of intellectual property, and unallocated costs in measuring the performance of the reportable segments.
The TFE segment designs, develops and markets vacuum process equipment solutions for high-volume manufacturing of small substrates with precise thin-film properties, such as for the hard drive, solar cell and DCP industries, as well as other adjacent thin-film markets.
The Photonics segment develops compact, cost-effective, high-sensitivity digital-optical products for the capture and display of low-light images. Intevac provides sensors, cameras and systems for government applications such as night vision.
 
Information for each reportable segment for the three months ended March 30, 2019 and March 31, 2018 is as follows:
Net Revenues
 
 
 
Three Months Ended
 
 
 
March 30,

2019
 
 
March 31,

2018
 
 
 
(In thousands)
 
TFE
 
$
18,945
 
 
$
12,789
 
Photonics
 
 
5,882
 
 
 
5,185
 
Total segment net revenues
 
$
24,827
 
 
$
17,974
 
Operating Loss
 
 
 
Three Months Ended
 
 
 
March 30,

2019
 
 
March 31,

2018
 
 
 
(In thousands)
 
TFE
 
$
(603
)
 
$
(2,509
)
Photonics
 
 
(640
)
 
 
(1,210
)
Total segment operating loss
 
 
(1,243
)
 
 
(3,719
)
Unallocated costs
 
 
(756
)
 
 
(1,402
)
Loss from operations
 
 
(1,999
)
 
 
(5,121
)
Interest income and other income (expense), net
 
 
160
 
 
 
145
 
Loss before income taxes
 
$
(1,839
)
 
$
(4,976
)
Total assets for each reportable segment as of March 30, 2019 and December 29, 2018 are as follows:
Assets
 
 
 
March 30,

2019
 
 
December 29,

2018
 
 
 
(In thousands)
 
TFE
 
$
52,417
 
 
$
53,867
 
Photonics
 
 
18,115
 
 
 
16,721
 
Total segment assets
 
 
70,532
 
 
 
70,588
 
Cash, cash equivalents and investments
 
 
40,695
 
 
 
39,163
 
Restricted cash
 
 
1,254
 
 
 
1,169
 
Deferred income taxes
 
 
7,581
 
 
 
7,913
 
Other current assets
 
 
1,124
 
 
 
1,341
 
Common property, plant and equipment
 
 
1,026
 
 
 
1,017
 
Common operating lease right-of-use assets
 
 
2,194
 
 
 
—
 
Other assets
 
 
887
 
 
 
879
 
Consolidated total assets
 
$
125,293
 
 
$
122,070