Segment and Geographic Information

12 Months Ended

Dec. 28, 2019

14. Segment and Geographic Information

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 December 28, 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 fiscal 2019 and 2018 is as follows:


	2019		2018
	(in thousands)
Net Revenues
TFE	$	73,678	$	69,348
Photonics		35,207		25,766

Total segment net revenues	$	108,885	$	95,114


	2019			2018
	(in thousands)
Operating Profit (Loss)
TFE	$	1,747		$	(1,335	)
Photonics		6,434			440

Total segment operating profit (loss)		8,181			(895	)

Unallocated costs		(4,256	)		(3,322	)

Operating income (loss)		3,925			(4,217	)

Interest income		574			516
Other income (expense), net		8			106

Income (loss) before income taxes	$	4,507		$	(3,595	)


	2019		2018
	(in thousands)
Depreciation and Amortization
TFE	$	1,909	$	2,387
Photonics		1,310		1,870

Total segment depreciation and amortization		3,219		4,257

Unallocated costs		372		357

Total consolidated depreciation and amortization	$	3,591	$	4,614


	2019		2018
	(in thousands)
Capital Additions
TFE	$	2,611	$	1,640
Photonics		832		1,295

Total segment capital additions		3,443		2,935

Unallocated		664		309

Total consolidated capital additions	$	4,107	$	3,244


	2019		2018
	(in thousands)
Segment Assets
TFE	$	51,153	$	53,867
Photonics		22,071		16,721

Total segment assets		73,224		70,588

Cash and investments		42,024		39,163
Restricted cash		787		1,169
Deferred income taxes		6,252		7,913
Other current assets		752		1,341
Common property, plant and equipment		1,307		1,017
Common operating lease right-of-use assets		1,898		—
Other assets		78		879

Consolidated total assets	$	126,322	$	122,070

Net property, plant and equipment by geographic region at December 28, 2019 and December 29, 2018 was as follows:


	December 28, 2019		December 29, 2018
	(in thousands)
United States	$	11,420	$	11,113
Asia		178		85

Net property, plant & equipment	$	11,598	$	11,198