10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 0-16244

VEECO INSTRUMENTS INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	11-2989601
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

Terminal Drive
Plainview, New York	11803
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:

(516) 677-0200

Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)	(Name of each exchange on which registered)
Common Stock, par value $0.01 per share	The NASDAQ Stock Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes ☐  No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by references in Part III of this Form 10-K or any amendment to this Form 10-K. ☒

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

The aggregate market value of the common stock held by non-affiliates of the registrant at June 29, 2018 (the last business day of the registrant’s most recently completed second quarter) was $682,511,019 based on the closing price of $14.25 on the NASDAQ Stock Market on that date.

The number of shares of each of the registrant’s classes of common stock outstanding on February 15, 2019 was 48,038,565 shares of common stock, par value $0.01 per share.

DOCUMENTS INCORPORATED BY REFERENCE

Certain portions of the definitive Proxy Statement to be used in connection with the Registrant’s 2019 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.

EXPLANATORY NOTE

This Amendment No. 1 to Form 10-K (this “Amendment”) amends the Annual Report on Form 10-K for the fiscal year ended December 31, 2018, originally filed on February 25, 2019 (the “Original 10-K”), of Veeco Instruments Inc., a Delaware corporation (the “Company” or “we”).  We are filing this Amendment solely to correct an error on the cover page of the Original 10-K in which the box identifying the Company as an accelerated filer was incorrectly checked.  The error has been corrected in this Amendment by checking the “Large accelerated filer” box on the cover page.  This Amendment does not reflect events occurring after February 25, 2019 or otherwise modify or update the disclosures set forth in the Original 10-K, including the financial statements and notes thereto included in the Original 10-K.

2

PART IV

Item 15. Exhibits, Financial Statement Schedules

(a)(3)  Exhibits

Exhibit Number	Exhibit Description	Filed or Furnished Herewith
31.1	Certification of Chief Executive Officer pursuant to Rule 13a—14(a) or Rule 15d—14(a) of the Securities and Exchange Act of 1934.	*
31.2	Certification of Chief Financial Officer pursuant to Rule 13a—14(a) or Rule 15d—14(a) of the Securities and Exchange Act of 1934.	*
101.INS	XBRL Instance.	*
101.XSD	XBRL Schema.	*
101.PRE	XBRL Presentation.	*
101.CAL	XBRL Calculation.	*
101.DEF	XBRL Definition.	*
101.LAB	XBRL Label.	*

*  Filed herewith electronically

3

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 1, 2019.

Veeco Instruments Inc.
By:	/S/ WILLIAM J. MILLER, Ph.D.
	William J. Miller, Ph.D.
	Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated, on May 1, 2019.

Signature	Title
/s/ WILLIAM J. MILLER, Ph.D.	Chief Executive Officer and Director
William J. Miller, Ph.D.	(principal executive officer)
	Executive Vice President, Chief Financial Officer, and
/s/ SHUBHAM MAHESHWARI	Chief Operating Officer
Shubham Maheshwari	(principal financial officer)
	Senior Vice President, Finance, Chief Accounting Officer,
/s/ JOHN P. KIERNAN	and Treasurer
John P. Kiernan	(principal accounting officer)
/s/ JOHN R. PEELER	Executive Chairman
John R. Peeler
/s/ KATHLEEN A. BAYLESS	Director
Kathleen A. Bayless
/s/ RICHARD A. D’AMORE	Director
Richard A. D’Amore
/s/ GORDON HUNTER	Director
Gordon Hunter
/s/ KEITH D. JACKSON	Director
Keith D. Jackson
/s/ PETER J. SIMONE	Director
Peter J. Simone
/s/ THOMAS ST. DENNIS	Director
Thomas St. Dennis

4

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a—14(a) or RULE 15d—14(a)

OF THE SECURITIES EXCHANGE ACT OF 1934

I, William J. Miller, Ph.D., certify that:

1. I have reviewed this annual report on Form 10-K/A for the year ended December 31, 2018 (the “Report”) of the Company; and

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

/s/ WILLIAM J. MILLER, Ph.D.

William J. Miller, Ph.D.

Chief Executive Officer and Director

Veeco Instruments Inc.

May 1, 2019

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a—14(a) or RULE 15d—14(a)

OF THE SECURITIES EXCHANGE ACT OF 1934

I, Shubham Maheshwari, certify that:

1. I have reviewed this annual report on Form 10-K/A for the year ended December 31, 2018 (the “Report”) of the Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

/s/ SHUBHAM MAHESHWARI

Shubham Maheshwari

Executive Vice President, Chief Financial Officer, and

Chief Operating Officer

Veeco Instruments Inc.

May 1, 2019

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Document and Entity Information - USD ($)		12 Months Ended
	Jan. 01, 2018	Dec. 31, 2018	Feb. 15, 2019	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name		VEECO INSTRUMENTS INC
Entity Central Index Key		0000103145
Document Type		10-K/A
Document Period End Date		Dec. 31, 2018
Amendment Flag		true
Amendment Description	This Amendment No. 1 to Form 10-K (this “Amendment”) amends the Annual Report on Form 10-K for the fiscal year ended December 31, 2018, originally filed on February 25, 2019 (the “Original 10-K”), of Veeco Instruments Inc., a Delaware corporation (the “Company” or “we”). We are filing this Amendment solely to correct an inadvertent clerical error on the cover page of the Original 10-K in which the box identifying the Company as an accelerated filer was incorrectly checked. The clerical error has been corrected in this Amendment by checking the “Large accelerated filer” box on the cover page. This Amendment does not reflect events occurring after February 25, 2019 or otherwise modify or update the disclosures set forth in the Original 10-K, including the financial statements and notes thereto included in the Original 10-K.
Current Fiscal Year End Date		--12-31
Entity Well-known Seasoned Issuer		Yes
Entity Voluntary Filers		No
Entity Current Reporting Status		Yes
Entity Filer Category		Large Accelerated Filer
Entity Public Float				$ 682,511,019
Entity Common Stock, Shares Outstanding			48,038,565
Entity Small Business		false
Entity Emerging Growth Company		false
Entity Shell Company		false
Document Fiscal Year Focus		2018
Document Fiscal Period Focus		FY

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 212,273	$ 279,736
Restricted cash	809	847
Short-term investments	48,189	47,780
Accounts receivable, net	66,808	98,866
Contract assets	10,397	160
Inventories	156,311	120,266
Deferred cost of sales	3,072	15,994
Prepaid expenses and other current assets	22,221	33,437
Total current assets	520,080	597,086
Property, plant, and equipment, net	80,284	85,058
Intangible assets, net	85,149	369,843
Goodwill	184,302	307,131
Deferred income taxes	1,869	3,047
Other assets	29,132	25,310
Total assets	900,816	1,387,475
Current liabilities:
Accounts payable	39,611	50,318
Accrued expenses and other current liabilities	46,450	58,068
Customer deposits and deferred revenue	72,736	112,032
Income taxes payable	1,256	3,846
Total current liabilities	160,053	224,264
Deferred income taxes	5,690	36,845
Long-term debt	287,392	275,630
Other liabilities	9,906	10,643
Total liabilities	463,041	547,382
Stockholders' equity:
Preferred stock, $0.01 par value; 500,000 shares authorized; no shares issued and outstanding.
Common stock, $0.01 par value; 120,000,000 shares authorized; 48,547,417 and 48,229,251 shares issued at December 31, 2018 and December 31, 2017, respectively; 48,024,685 and 48,144,416 shares outstanding at December 31, 2018 and December 31, 2017, respectively.	485	482
Additional paid-in capital	1,061,325	1,051,953
Accumulated deficit	(619,983)	(212,870)
Accumulated other comprehensive income	1,820	1,812
Treasury stock, at cost, 522,732 and 84,835 shares at December 31, 2018 and December 31, 2017, respectively.	(5,872)	(1,284)
Total stockholders' equity	437,775	840,093
Total liabilities and stockholders' equity	$ 900,816	$ 1,387,475

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	120,000,000	120,000,000
Common stock, shares issued	48,547,417	48,229,251
Common stock, shares outstanding	48,024,685	48,144,416
Treasury stock, shares	522,732	84,835

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Operations
Net sales	$ 542,082	$ 475,686	$ 331,702
Cost of sales	348,363	299,458	198,604
Gross profit	193,719	176,228	133,098
Operating expenses, net:
Research and development	97,755	81,987	81,016
Selling, general, and administrative	92,060	100,250	77,642
Amortization of intangible assets	32,351	35,475	19,219
Restructuring	8,556	11,851	5,640
Acquisition costs	2,959	17,786
Asset impairment	375,172	1,139	69,520
Other, net	368	(392)	223
Total operating expenses, net	609,221	248,096	253,260
Operating income (loss)	(415,502)	(71,868)	(120,162)
Interest income	3,186	2,335	1,180
Interest expense	(21,518)	(19,457)	(222)
Income (loss) before income taxes	(433,834)	(88,990)	(119,204)
Income tax expense (benefit)	(26,746)	(37,594)	2,823
Net income (loss)	$ (407,088)	$ (51,396)	$ (122,027)
Income (loss) per common share:
Basic (in dollars per share)	$ (8.63)	$ (1.16)	$ (3.10)
Diluted (in dollars per share)	$ (8.63)	$ (1.16)	$ (3.10)
Weighted average number of shares:
Basic (in shares)	47,151	44,174	39,340
Diluted (in shares)	47,151	44,174	39,340

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (407,088)	$ (51,396)	$ (122,027)
Available-for-sale securities:
Change in net unrealized gains or losses	11	(7)	(6)
Reclassification adjustments for net (gains) losses included in net income			18
Unrealized gain (loss) on available-for-sale securities	11	(7)	12
Minimum pension liability:
Reclassification adjustments for net (gains) losses included in net income			866
Net changes related to minimum pension liability			866
Currency translation adjustments:
Change in currency translation adjustments	5	42	(19)
Reclassification adjustments for net (gains) losses included in net income	(8)		(430)
Net changes related to currency translation adjustments	(3)	42	(449)
Total other comprehensive income (loss), net of tax	8	35	429
Total comprehensive income (loss)	$ (407,080)	$ (51,361)	$ (121,598)

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Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Balance at the beginning of the period at Dec. 31, 2015	$ 410	$ (9,222)	$ 767,137	$ (45,058)	$ 1,348	$ 714,615
Balance (in shares) at Dec. 31, 2015	40,996	469
Increase (Decrease) in Stockholders' Equity
Net loss				(122,027)		(122,027)
Other comprehensive income (loss), net of tax					429	429
Share-based compensation expense			15,741			15,741
Net issuance under employee stock plans	$ (3)	$ 19,948	(20,890)			(945)
Net issuance under employee stock plans (in shares)	(281)	(1,072)
Purchases of common stock		$ (13,035)				(13,035)
Purchase of common stock (in shares)		730
Balance at the end of the period at Dec. 31, 2016	$ 407	$ (2,309)	763,303	(161,474)	1,777	601,704
Balance (in shares) at Dec. 31, 2016	40,715	127
Increase (Decrease) in Stockholders' Equity
Cumulative effect of change in accounting principle | ASU 2016-09			1,315	(1,315)
Cumulative effect of change in accounting principle | ASU 2014-09, Revenue from Contracts with Customers				6,926		6,926
Net loss				(51,396)		(51,396)
Other comprehensive income (loss), net of tax					35	35
Share-based compensation expense			24,396			24,396
Net issuance under employee stock plans	$ 3	$ 4,043	(9,795)			(5,749)
Net issuance under employee stock plans (in shares)	313	(245)
Stock issuance for business acquisition	$ 72		228,800			228,872
Stock issuance for business acquisition (in shares)	7,201
Convertible Senior Notes, equity component			45,249			45,249
Purchases of common stock		$ (3,018)				(3,018)
Purchase of common stock (in shares)		203
Balance at the end of the period at Dec. 31, 2017	$ 482	$ (1,284)	1,051,953	(212,870)	1,812	840,093
Balance (in shares) at Dec. 31, 2017	48,229	85
Increase (Decrease) in Stockholders' Equity
Net loss				(407,088)		(407,088)
Other comprehensive income (loss), net of tax					8	8
Share-based compensation expense			16,074			16,074
Net issuance under employee stock plans	$ 3	$ 6,721	(6,702)	(25)		(3)
Net issuance under employee stock plans (in shares)	318	(512)
Purchases of common stock		$ (11,309)				(11,309)
Purchase of common stock (in shares)		950
Balance at the end of the period at Dec. 31, 2018	$ 485	$ (5,872)	$ 1,061,325	$ (619,983)	$ 1,820	$ 437,775
Balance (in shares) at Dec. 31, 2018	48,547	523

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net income (loss)	$ (407,088)	$ (51,396)	$ (122,027)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	49,998	50,095	32,650
Non-cash interest expense	11,762	10,446
Deferred income taxes	(27,620)	(35,363)	997
Share-based compensation expense	16,074	24,396	15,741
Asset impairment	375,172	1,139	69,520
Provision for bad debts		99	171
Gain on cumulative translation adjustment			(430)
Changes in operating assets and liabilities:
Accounts receivable and contract assets	21,821	10,240	(8,880)
Inventories and deferred cost of sales	(24,678)	6,244	(6,106)
Prepaid expenses and other current assets	11,216	(10,204)	6,726
Accounts payable and accrued expenses	(19,672)	11,308	(24,474)
Customer deposits and deferred revenue	(39,296)	22,446	9,770
Income taxes receivable and payable, net	(4,800)	775	547
Long-term income tax liability		(4,877)
Other, net	(627)	(355)	1,951
Net cash provided by (used in) operating activities	(37,738)	34,993	(23,844)
Cash Flows from Investing Activities
Acquisitions of businesses, net of cash acquired	(2,662)	(401,828)
Capital expenditures	(12,654)	(24,272)	(11,479)
Proceeds from the sale of investments	90,065	348,927	152,301
Payments for purchases of investments	(93,046)	(282,947)	(103,394)
Proceeds from held for sale assets		2,284	9,512
Other			(230)
Net cash provided by (used in) investing activities	(18,297)	(357,836)	46,710
Cash Flows from Financing Activities
Proceeds (net of tax withholdings) from option exercises and employee stock purchase plan	3,064	2,992	1,656
Restricted stock tax withholdings	(3,069)	(8,741)	(2,601)
Purchases of common stock	(11,457)	(2,869)	(13,349)
Proceeds from long-term debt borrowings		335,752
Principal payments on long-term debt		(1,194)	(340)
Net cash provided by (used in) financing activities	(11,462)	325,940	(14,634)
Effect of exchange rate changes on cash and cash equivalents	(4)	42	(20)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(67,501)	3,139	8,212
Cash, cash equivalents, and restricted cash - beginning of period	280,583	277,444	269,232
Cash, cash equivalents, and restricted cash - end of period	213,082	280,583	277,444
Supplemental Disclosure of Cash Flow Information
Interest paid	9,708	4,675	225
Income taxes paid	4,799	1,939	1,669
Non-cash operating and financing activities
Net transfer of inventory to property, plant and equipment	$ 1,479	$ (97)	$ 1,827

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies

Significant Accounting Policies

Note 1 — Significant Accounting Policies

(a) Description of Business

Veeco Instruments Inc. (together with its consolidated subsidiaries, “Veeco,” or the “Company”) operates in a single segment: the development, manufacture, sales, and support of semiconductor and thin film process equipment primarily sold to make electronic devices.

(b) Basis of Presentation

The accompanying audited Consolidated Financial Statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The Company reports interim quarters on a 13-week basis ending on the last Sunday of each period, which is determined at the start of each year. The Company’s fourth quarter always ends on the last day of the calendar year, December 31. During 2018 the interim quarters ended on April 1, July 1, and September 30, and during 2017 the interim quarters ended on April 2, July 2, and October 1. The Company reports these interim quarters as March 31, June 30, and September 30 in its interim consolidated financial statements.

(c) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, these estimates may ultimately differ from actual results. Significant items subject to such estimates and assumptions include: (i) stand-alone selling prices for the Company’s products and services; (ii) allowances for doubtful accounts; (iii) inventory obsolescence; (iv) the useful lives and expected future cash flows of property, plant, and equipment and identifiable intangible assets; (v) the fair value of the Company’s reporting unit and related goodwill; (vi) investment valuations and the valuation of derivatives, deferred tax assets, and assets acquired in business combinations; (vii) the recoverability of long-lived assets; (viii) liabilities for product warranty and legal contingencies; (ix) share-based compensation; and (x) income tax uncertainties. Actual results could differ from those estimates.

(d) Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period.

(e) Foreign Currencies

Assets and liabilities of the Company’s foreign subsidiaries that operate using functional currencies other than the U.S. dollar are translated using the exchange rates in effect at the balance sheet date. Results of operations are translated using monthly average exchange rates. Adjustments arising from the translation of the foreign currency financial statements of the Company’s subsidiaries into U.S. dollars, including intercompany transactions of a long-term nature, are reported as currency translation adjustments in “Accumulated other comprehensive income” in the Consolidated Balance Sheets. Foreign currency transaction gains or losses are included in “Other, net” in the Consolidated Statements of Operations.

(f) Revenue Recognition

Revenue is recognized upon the transfer of control of the promised product or service to the customer in an amount that reflects the consideration the Company expects to receive in exchange for such product or service. The Company’s contracts with customers generally do not contain variable consideration. In the rare instances where variable consideration is included, the Company estimates the amount of variable consideration and determines what portion of that, if any, has a high probability of significant subsequent revenue reversal, and if so, that amount is excluded from the transaction price. The Company’s contracts with customers frequently contain multiple deliverables, such as systems, upgrades, components, spare parts, installation, maintenance, and service plans. Judgment is required to properly identify the performance obligations within a contract and to determine how the revenue should be allocated among the performance obligations. The Company also evaluates whether multiple transactions with the same customer or related parties should be considered part of a single contract based on an assessment of whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of one another.

When there are separate units of accounting, the Company allocates revenue to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling prices are determined based on the prices at which the Company separately sells the systems, upgrades, components, spare parts, installation, maintenance, and service plans. For items that are not sold separately, the Company estimates stand-alone selling prices generally using an expected cost plus margin approach.

Most of the Company’s revenue is recognized at a point in time when the performance obligation is satisfied. The Company considers many facts when evaluating each of its sales arrangements to determine the timing of revenue recognition, including its contractual obligations and the nature of the customer’s post-delivery acceptance provisions. The Company’s system sales arrangements, including certain upgrades, generally include field acceptance provisions that may include functional or mechanical test procedures. For many of these arrangements, a customer source inspection of the system is performed in the Company’s facility, test data is sent to the customer documenting that the system is functioning to the agreed upon specifications prior to delivery, or other quality assurance testing is performed internally to ensure system functionality prior to shipment. Historically, such source inspection or test data replicates the field acceptance provisions that are performed at the customer’s site prior to final acceptance of the system. When the Company objectively demonstrates that the criteria specified in the contractual acceptance provisions are achieved prior to delivery either through customer testing or the Company’s historical experience of its tools meeting specifications, transfer of control of the product to the customer is considered to have occurred and revenue is recognized upon system delivery since there is no substantive contingency remaining related to the acceptance provisions at that date. For new products, new applications of existing products, or for products with substantive customer acceptance provisions where the Company cannot objectively demonstrate that the criteria specified in the contractual acceptance provisions have been achieved prior to delivery, revenue and the associated costs are deferred. The Company recognizes such revenue and costs upon obtaining objective evidence that the acceptance provisions can be achieved, assuming all other revenue recognition criteria have been met.

In certain cases the Company’s contracts with customers contain a billing retention, typically 10% of the sales price, which is billed by the Company and payable by the customer when field acceptance provisions are completed. Revenue recognized in advance of the amount that has been billed is recorded as a contract asset on the Consolidated Balance Sheets.

The Company recognizes revenue related to maintenance and service contracts over time based upon the respective contract term. Installation revenue is recognized over time as the installation services are performed. The Company recognizes revenue from the sales of components, spare parts, and specified service engagements at a point in time, which is typically consistent with the time of delivery in accordance with the terms of the applicable sales arrangement.

The Company may receive customer deposits on system transactions. The timing of the transfer of goods or services related to the deposits is either at the discretion of the customer or expected to be within one year from the deposit receipt. As such, the Company does not adjust transaction prices for the time value of money. Incremental direct costs incurred related to the acquisition of a customer contract, such as sales commissions, are expensed as incurred since the expected amortization period is one year or less.

The Company has elected to treat shipping and handling costs as a fulfillment activity, and the Company includes such costs in cost of services when the Company recognizes revenue for the related goods. Taxes assessed by governmental authorities that are collected by the Company from a customer are excluded from revenue.

(g) Warranty Costs

The Company typically provides standard warranty coverage on its systems for one year from the date of final acceptance by providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost when revenue is recognized on the related system. Warranty cost is included in “Cost of sales” in the Consolidated Statements of Operations. The estimated warranty cost is based on the Company’s historical experience with its systems and regional labor costs. The Company calculates the average service hours by region and parts expense per system utilizing actual service records to determine the estimated warranty charge. The Company updates its warranty estimates on a quarterly basis when the actual product performance or field expense differs from original estimates.

(h) Shipping and Handling Costs

Shipping and handling costs are expenses incurred to move, package, and prepare the Company’s products for shipment and to move the products to a customer’s designated location. These costs are generally comprised of payments to third-party shippers. Shipping and handling costs are included in “Cost of sales” in the Consolidated Statements of Operations.

(i) Research and Development Costs

Research and development costs are expensed as incurred and include charges for the development of new technology and the transition of existing technology into new products or services.

(j) Advertising Expense

The cost of advertising is expensed as incurred and totaled $0.9 million, $0.9 million, and $0.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

(k) Accounting for Share-Based Compensation

Share-based awards exchanged for employee services are accounted for under the fair value method. Accordingly, share-based compensation cost is measured at the grant date based on the fair value of the award. The expense for awards is recognized over the employee’s requisite service period (generally the vesting period of the award). The Company has elected to treat awards with only service conditions and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting period, so long as the compensation cost recognized at any date at least equals the portion of the grant date fair value of the award that is vested at that date.

In addition to stock options, restricted share awards (“RSAs”) and restricted stock units (“RSUs”) with time-based vesting, the Company grants performance share units and awards (“PSUs” and “PSAs”) that have either performance or market conditions. Compensation cost for PSUs and PSAs with performance conditions is recognized over the requisite service period based on the timing and expected level of achievement of the performance targets. A change in the assessment of performance attainment prior to the conclusion of the performance period is recognized in the period of the change in estimate. Compensation cost for PSUs and PSAs with market conditions is recognized over the requisite service period regardless of the expected level of achievement. For all PSUs and PSAs, the number of shares issued to the employee at the conclusion of the service period may vary from the original target based upon the level of attainment of the performance or market conditions.

The Company uses the Black-Scholes option-pricing model to compute the estimated fair value of option awards and purchase rights under the Employee Stock Purchase Plan. The Company uses a Monte Carlo simulation to compute the estimated fair value of awards with market conditions. The Black-Scholes model and Monte Carlo simulation include assumptions regarding dividend yields, expected volatility, expected option term, and risk-free interest rates. See Note 15, “Stock Plans,” for additional information.

See Note 1(t), “Recently Adopted Accounting Standards,” for additional information concerning the Company’s adoption of Accounting Standards Update (“ASU”) 2016-09: Stock Compensation: Improvements to Employee Share-Based Payment Accounting.

(l) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in income in the period that includes the enactment date.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), which made broad and complex changes to the U.S. tax code. In response to the 2017 Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provided guidance on accounting for the tax effects of 2017 Tax Act, including addressing any uncertainty or diversity of view in applying ASC 740, Income Taxes (“ASC 740”), in the reporting period in which the 2017 Tax Act was enacted. In addition, SAB 118 provided a measurement period that should not extend beyond one year from the 2017 Tax Act enactment date for companies to complete the accounting under ASC 740. During the year ended December 31, 2018, the Company finalized the accounting for the tax effects of 2017 Tax Act.

In January 2018, the FASB released guidance on the accounting for taxes under the global intangible low-taxed income (“GILTI”) provisions of the 2017 Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign operations. The Company has made a policy election to account for income taxes incurred under GILTI as a period cost.

(m) Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, derivative financial instruments used in hedging activities, and accounts receivable. The Company invests in a variety of financial instruments and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. The Company has not experienced any material credit losses on its investments.

The Company maintains an allowance reserve for potentially uncollectible accounts for estimated losses resulting from the inability of its customers to make required payments. The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed to be uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount reasonably expected to be collected. The Company also provides allowances based on its write-off history. The allowance for doubtful accounts totaled $0.3 million at December 31, 2018 and 2017.

To further mitigate the Company’s exposure to uncollectable accounts, the Company may request certain customers provide a negotiable irrevocable letter of credit drawn on a reputable financial institution. These irrevocable letters of credit are typically issued to mature between zero and 90 days from the date the documentation requirements are met, typically when a system ships or upon receipt of final acceptance from the customer. The Company, at its discretion, may monetize these letters of credit on a non-recourse basis after they become negotiable but before maturity. The fees associated with the monetization are included in “Selling, general, and administrative” in the Consolidated Statements of Operations and were immaterial for the years ended December 31, 2018, 2017, and 2016.

(n) Fair Value of Financial Instruments

The carrying amounts of financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued expenses reflected in the consolidated financial statements approximate fair value due to their short-term maturities. The fair value of debt for footnote disclosure purposes, including current maturities, if any, is estimated using recently quoted market prices of the instrument, or if not available, a discounted cash flow analysis based on the estimated current incremental borrowing rates for similar types of instruments.

(o) Cash, Cash Equivalents, and Short-Term Investments

All financial instruments purchased with an original maturity of three months or less at the time of purchase are considered cash equivalents. Such items may include liquid money market funds, certificate of deposit and time deposit accounts, U.S. treasuries, government agency securities, and corporate debt. Investments that are classified as cash equivalents are carried at cost, which approximates fair value. The Company’s cash and cash equivalents includes $69.6 million and $76.7 million of cash equivalents at December 31, 2018 and 2017, respectively.

A portion of the Company’s cash and cash equivalents is held by its subsidiaries throughout the world, frequently in each subsidiary’s respective functional currency, which is typically the U.S. dollar. Approximately 32% and 77% of cash and cash equivalents were maintained outside the United States at December 31, 2018 and 2017, respectively.

Marketable debt securities are generally classified as available-for-sale for use in current operations, if required, and are 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.” These securities can 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, net” in the Consolidated Statements of Operations. The specific identification method is used to determine the realized gains and losses on investments.

Non-marketable equity securities are equity securities without readily observable market prices and are included in “Other assets” in the Consolidated Balance Sheets. Non-marketable securities are measured at cost, adjusted for changes in observable prices minus impairment. Changes in fair value are included in “Other, net” in the Consolidated Statements of Operations.

(p) Inventories

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Each quarter the Company assesses the valuation of all inventories: materials (raw materials, spare parts, and service inventory); work-in-process; and finished goods. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated net realizable value if less than cost. Estimates of net realizable value include, but are not limited to, management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general market conditions, possible alternative uses, and the ultimate realization of excess inventory. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of sales in the period the revision is made. Inventory acquired as part of a business combination is recorded at fair value on the date of acquisition. See Note 5, “Business Combinations,” for additional information.

(q) Business Combinations

The Company allocates the fair value of the purchase consideration of the Company’s acquisitions to the tangible assets, intangible assets, including in-process research and development (“IPR&D”), if any, and liabilities assumed, based on estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. See Note 5, “Business Combinations,” for additional information.

(r) Goodwill and Indefinite-Lived Intangible Assets

Goodwill is an asset representing the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is measured as the excess of the consideration transferred over the net fair value of identifiable assets acquired and liabilities assumed. Intangible assets with indefinite useful lives are measured at their respective fair values on the acquisition date. Intangible assets related to IPR&D projects are considered to be indefinite-lived until the completion or abandonment of the associated R&D efforts. If and when development is complete, the associated assets would be deemed long-lived and would then be amortized based on their respective estimated useful lives at that point in time. Goodwill and indefinite-lived intangibles are not amortized into results of operations but instead are evaluated for impairment. The Company performs the evaluation in the beginning of the fourth quarter of each year or more frequently if impairment indicators arise.

In testing goodwill for impairment, the Company may first perform a qualitative assessment of whether it is more likely than not that the reporting unit’s fair value is less than its carrying amount, and, if so, the Company then quantitatively compares the fair value of the reporting unit to its carrying amount. If the fair value exceeds the carrying amount, goodwill is not impaired. If the carrying amount exceeds fair value, the Company then records an impairment loss equal to the difference, up to the carrying value of goodwill.

The Company determines the fair value of its reporting unit based on a reconciliation of the fair value of the reporting unit to the Company’s adjusted market capitalization. The adjusted market capitalization is calculated by multiplying the average share price of the Company’s common stock for the last ten trading days prior to the measurement date by the number of outstanding common shares and adding a control premium. The control premium is estimated using historical transactions in similar industries.

In testing indefinite-lived intangible assets for impairment, the Company may first perform a qualitative assessment of whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, and, if so, the Company then quantitatively compares the fair value of the indefinite-lived intangible asset to its carrying amount. The Company determines the fair value of its indefinite-lived intangible assets using a discounted cash flow method.

(s) Long-Lived Assets

Long-lived 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 straight-lined if such pattern cannot be reliably determined.

Property, plant, and equipment are recorded at cost. Depreciation expense is calculated based on the estimated useful lives of the assets by using the straight-line method. Amortization of leasehold improvements is recognized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, a recoverability test is performed utilizing undiscounted cash flows expected to be generated by that asset or asset group compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models or, when available, quoted market values and third-party appraisals.

(t) Recently Adopted Accounting Standards

The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), as of January 1, 2018, using the full retrospective method. All amounts and disclosures set forth in this Form 10-K reflect these changes. The most significant financial statement impacts of adopting ASC 606 are the elimination of the constraint on revenue associated with the billing retention related to the receipt of customer final acceptance and the identification of installation services as a performance obligation. The elimination of the constraint on revenue related to customer final acceptance, which is usually about 10 percent of a system sale, is now generally recognized at the time the Company transfers control of the system to the customer, which is earlier than under the Company’s previous revenue recognition model for certain contracts that were subject to the billing constraint. The performance obligation related to installation services is now recognized as the installation services are performed, which is later than the Company’s previous revenue recognition model.

The Company applied ASC 606 retrospectively and elected to use the disclosure exemption in the transition guidance under which the Company does not disclose prior period information regarding the amount of the transaction price allocated to remaining performance obligations. The cumulative effect of the adoption was recognized as a decrease to Accumulated deficit of $6.9 million on January 1, 2016. The following tables summarize the impact of adoption on the Company’s previously reported financial position and results of operations:

		December 31, 2017
		As reported		Adjustments		As adjusted
	(in thousands)
Balance Sheet
Contract assets	$	—	$	160	$	160
Deferred cost of sales		16,060		(66)		15,994
Deferred income taxes		2,953		94		3,047
Accrued expenses and other current liabilities		60,339		(2,271)		58,068
Customer deposits and deferred revenue		108,953		3,079		112,032
Additional paid-in capital		1,053,079		(1,126)		1,051,953
Accumulated deficit		(213,376)		506		(212,870)

		Year ended December 31,
		2017						2016
		As reported		Adjustments		As adjusted		As reported		Adjustments		As adjusted
	(in thousands, except per share amounts)
Statement of Operations
Net sales		$	484,756	$	(9,070)	$	475,686	$	332,451	$	(749)	$	331,702
Cost of sales			300,438		(980)		299,458		199,593		(989)		198,604
Income tax expense (benefit)			(36,107)		(1,487)		(37,594)		2,766		57		2,823
Net income (loss)			(44,793)		(6,603)		(51,396)		(122,210)		183		(122,027)
Diluted earnings (loss) per share			(1.01)		(0.15)		(1.16)		(3.11)		0.01		(3.10)

The Company’s adoption of the standard had no impact to cash provided by or used in operating, investing, or financing activities on the Consolidated Statements of Cash Flows.

The Company adopted ASU 2016-01, Financial Instruments – Overall, as of January 1, 2018. This ASU requires certain equity investments to be measured at fair value, with changes in fair value recognized in net income. The Company measures equity investments without readily observable market prices at cost, adjusted for changes in observable prices minus impairment. Changes in measurement are included in “Other, net” in the Consolidated Statements of Operations. This ASU has not had a material impact on the consolidated financial statements upon adoption, and the Company will monitor its equity investments each reporting period for changes in observable market prices, if any, which may be material in future periods.

The Company adopted ASU 2016-09: Stock Compensation: Improvements to Employee Share-Based Payment Accounting, as of January 1, 2016. This ASU simplifies several aspects of the accounting for share-based payments. Beginning in 2016, excess tax benefits and deficiencies are recognized as income tax expense or benefit in the income statement in the reporting period incurred. The Company also made an accounting policy election to account for forfeitures when they occur. The ASU transition guidance requires that this election be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the ASU is adopted. Accordingly, the Company recorded a $1.3 million charge to the opening accumulated deficit balance as of January 1, 2016, with a corresponding adjustment to additional paid-in capital, resulting in no impact to the opening balance of total stockholders’ equity. In addition, the Company recorded additional deferred tax assets with an equally offsetting valuation allowance of $2.4 million.

(u) Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02: Leases, which, along with subsequent ASUs related to this topic, has been codified as Accounting Standards Codification 842 (“ASC 842”). ASC 842 generally requires operating lessee rights and obligations to be recognized as assets and liabilities on the balance sheet. The new standard, which is effective for the Company on January 1, 2019, offers a transition option whereby companies can recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company plans to adopt using this transition method. In addition, ASC 842 provides for a number of optional exemptions in transition. The Company expects to elect certain exemptions whereby prior conclusions regarding lease identification, lease classification, and initial direct costs are not required to be reassessed under the new standard. The Company also plans to elect allowable policies whereby the Company will not separate lease and non-lease components, and the Company will not recognize an asset or liability for leases with original terms or renewals of one year or less. Upon adoption, the Company expects to recognize an operating lease liability ranging from $12 million to $16 million based on the present value of remaining minimum rental payments on existing leases, with corresponding assets of approximately the same amount.

The Company is also evaluating other pronouncements recently issued but not yet adopted. The adoption of these pronouncements is not expected to have a material impact on our consolidated financial statements.

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Income (Loss) Per Share

12 Months Ended

Dec. 31, 2018

Income (Loss) Per Share

Income (Loss) Per Share

Note 2 — Income (Loss) Per Share

The Company considers unvested share-based awards that have non-forfeitable rights to dividends prior to vesting to be participating shares, which are treated as a separate class of security from the Company’s common shares for calculating per share data. Therefore, the Company applies the two-class method when calculating income (loss) per share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. However, since the holders of the participating shares are not obligated to fund losses, participating shares are excluded from the calculation of loss per share.

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period under the two-class method. Diluted income per share is calculated by dividing net income by the weighted average number of shares used to calculate basic income per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and non-participating share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share in the periods the performance targets have been achieved. The computations of basic and diluted income (loss) per share for the years ended December 31, 2018, 2017, and 2016 are as follows:

	For the year ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Net income (loss)	$	(407,088)	$	(51,396)	$	(122,027)
Net income (loss) per common share:
Basic	$	(8.63)	$	(1.16)	$	(3.10)
Diluted	$	(8.63)	$	(1.16)	$	(3.10)
Basic weighted average shares outstanding		47,151		44,174		39,340
Effect of potentially dilutive share-based awards		—		—		—
Diluted weighted average shares outstanding		47,151		44,174		39,340
Unvested participating shares excluded from basic weighted average shares outstanding since the securityholders are not obligated to fund losses		20		72		312
Common share equivalents excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive		28		239		107
Potentially dilutive non-participating shares excluded from the diluted calculation as their effect would be antidilutive		2,474		1,744		1,896
Maximum potential shares to be issued for settlement of the Convertible Senior Notes excluded from the diluted calculation as their effect would be antidilutive		8,618		8,618		—

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Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

Fair Value Measurements

Note 3 — Fair Value Measurements

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. The Company is required to classify certain assets and liabilities 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. The Company 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 Company’s assets that were measured at fair value on a recurring basis at December 31, 2018 and 2017:

	Level 1		Level 2		Level 3		Total
	(in thousands)
December 31, 2018
Cash equivalents
Certificate of deposits and time deposits	$	65,571	$	—	$	—	$	65,571
U.S. treasuries		3,990		—		—		3,990
Total	$	69,561	$	—	$	—	$	69,561
Short-term investments
U.S. treasuries	$	37,184	$	—	$	—	$	37,184
Corporate debt		—		8,516		—		8,516
Commercial paper		—		2,489		—		2,489
Total	$	37,184	$	11,005	$	—	$	48,189
December 31, 2017
Cash equivalents
Certificate of deposits and time deposits	$	64,249	$	—	$	—	$	64,249
U.S. treasuries		12,490		—		—		12,490
Total	$	76,739	$	—	$	—	$	76,739
Short-term investments
U.S. treasuries	$	33,895	$	—	$	—	$	33,895
Corporate debt		—		10,886		—		10,886
Commercial paper		—		2,999		—		2,999
Total	$	33,895	$	13,885	$	—	$	47,780

The Company’s investments classified as Level 1 are based on quoted prices that are available in active markets. The Company’s investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency.

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Investments

12 Months Ended

Dec. 31, 2018

Investments

Investments

Note 4 — Investments

At December 31, 2018 and 2017 the amortized cost and fair value of marketable securities were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(in thousands)
December 31, 2018
U.S. treasuries	$	37,191	$	—	$	(7)	$	37,184
Corporate debt		8,525		—		(9)		8,516
Commercial paper		2,489		—		—		2,489
Total	$	48,205	$	—	$	(16)	$	48,189
December 31, 2017
U.S. treasuries	$	33,914	$	—	$	(19)	$	33,895
Corporate debt		10,894		—		(8)		10,886
Commercial paper		2,999		—		—		2,999
Total	$	47,807	$	—	$	(27)	$	47,780

Available-for-sale securities in a loss position at December 31, 2018 and 2017 were as follows:

	December 31, 2018				December 31, 2017
			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses
	(in thousands)
U.S. treasuries	$	37,184	$	(7)	$	33,895	$	(19)
Corporate debt		8,516		(9)		10,886		(8)
Total	$	45,700	$	(16)	$	44,781	$	(27)

At December 31, 2018 and 2017, 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 December 31, 2018 were all due in one year or less. 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. The realized gains or losses for the years ended December 31, 2018, 2017, and 2016 were immaterial.

Other Investments

Veeco has an ownership interest of less than 20% in a non-marketable investment, Kateeva, Inc. (“Kateeva”), over which Veeco does not exert significant influence. The carrying value of the investment was $21.0 million at December 31, 2018 and 2017. Additionally, during the year ended December 31, 2018, the Company made a separate non-marketable investment of $3.5 million in another entity. The Company does not exert significant influence over this investment and its ownership interest is less than 20%. Neither equity investment has a readily observable market price, and therefore the Company has elected to measure these investments at cost, adjusted for changes in observable market prices minus impairment. The investments are included in “Other assets” on the Consolidated Balance Sheets. There were no changes in observable market prices for either investment for the year ended December 31, 2018. These investments are subject to periodic impairment reviews; as there are no open-market valuations, the impairment analyses require judgment. The analyses include assessments of the companies’ financial condition, the business outlooks for their products and technologies, their projected results and cash flow, business valuation indications from recent rounds of financing, the likelihood of obtaining subsequent rounds of financing, and the impact of equity preferences held by Veeco relative to other investors. There were no impairment charges recorded for either investment for the years ended December 31, 2018, 2017, or 2016.

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Business Combinations

12 Months Ended

Dec. 31, 2018

Business Combinations

Business Combinations

Note 5 — Business Combinations

Ultratech

On May 26, 2017, the Company completed its acquisition of Ultratech, Inc. (“Ultratech”). Ultratech develops, manufactures, sells, and supports lithography, laser annealing, and inspection equipment for manufacturers of semiconductor devices, including front-end semiconductor manufacturing and advanced packaging. Ultratech also develops, manufactures, sells, and supports ALD equipment for scientific and industrial applications. Ultratech’s customers are primarily located throughout the United States, Europe, China, Japan, Taiwan, Singapore, and Korea. The results of Ultratech’s operations have been included in the consolidated financial statements since the date of acquisition.

Ultratech shareholders received (i) $21.75 per share in cash and (ii) 0.2675 of a share of Veeco common stock for each Ultratech common share outstanding on the acquisition date. The acquisition date fair value of the consideration totaled $633.4 million, net of cash acquired, which consisted of the following:

	Acquisition Date
	(May 26, 2017)
	(in thousands)
Cash consideration, net of cash acquired of $229.4 million	$	404,490
Equity consideration (7.2 million shares issued)		228,643
Replacement equity awards attributable to pre-acquisition service		228
Acquisition date fair value	$	633,361

Approximately $2.7 million of the cash merger consideration is included in “Accrued expenses and other current liabilities” on the Consolidated Balance Sheets as of December 31, 2017 related to shareholder appraisal proceedings that were subsequently settled and paid during 2018.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

	Acquisition Date
	(May 26, 2017)
	(in thousands)
Short-term investments	$	47,161
Accounts receivable		45,465
Inventories		59,100
Deferred cost of sales		242
Prepaid expense and other current assets		7,217
Property, plant, and equipment		18,152
Intangible assets		346,940
Other assets		6,442
Total identifiable assets acquired		530,719
Accounts payable		24,291
Accrued expenses and other current liabilities		16,356
Customer deposits and deferred revenue		4,834
Deferred income taxes		32,478
Other liabilities		11,622
Total liabilities assumed		89,581
Net identifiable assets acquired		441,138
Goodwill		192,223
Net assets acquired	$	633,361

The gross contractual value of the acquired accounts receivable was approximately $46.0 million. The fair value of the accounts receivables is the amount expected to be collected by the Company. Goodwill generated from the acquisition is primarily attributable to expected synergies from future growth and strategic advantages provided through the expansion of product offerings as well as assembled workforce and is not expected to be deductible for income tax purposes.

The classes of intangible assets acquired and the estimated useful life of each class is presented in the table below:

	Acquisition Date
	(May 26, 2017)
	Amount		Useful life
	(in thousands)
Technology	$	158,390	9	years
Customer relationships		116,710	12	years
Backlog		3,080	6	months
In-process research and development		43,340	*
Trademark and tradenames		25,420	7	years
Intangible assets acquired	$	346,940

*In-process research and development will be amortized (or impaired) upon completion (or abandonment) of the development project.

The Company determined the estimated fair value of the identifiable intangible assets based on various factors including: cost, discounted cash flow, income method, loss-of-revenue/income method, and relief-from-royalty method in determining the purchase price allocation.

In-process research and development (“IPR&D”) represents the estimated fair values of incomplete Ultratech research and development projects that had not reached the commercialization stage and met the criteria for recognition as IPR&D as of the date of the acquisition. The fair value of IPR&D was determined using an income approach and costs to complete the project and expected commercialization timelines are considered key assumptions. This valuation approach reflected the present value of the projected cash flows that were expected to be generated by the IPR&D less charges representing the contribution of other assets to those cash flows. The value of the IPR&D was determined to be $43.3 million, approximately half of which was related to Ultratech’s lithography technologies and one-third of which was related to Ultratech’s laser annealing technologies.

During the second quarter of 2018, the Company lowered its projected results for the Ultratech asset group and determined that the revised projections were significantly lower than projected results at the time of the acquisition and that these revised projections required the Company to assess the Ultratech asset group for impairment. See Note 6, “Goodwill and Intangible Assets,” for additional information.

For the year ended December 31, 2018 and 2017, acquisition related costs were approximately $3.0 million and $17.8 million, respectively, including non-cash charges of $4.2 million related to accelerated share-based compensation for employee terminations for the year ended December 31, 2017.

The amounts of net sales and income (loss) from operations before income taxes of Ultratech included in the Company’s Consolidated Statement of Operations for the year ended December 31, 2017 are as follows:

	Year ended
	December 31, 2017
	(in thousands)
Net sales	$	65,280
Loss before income taxes	$	(62,284)

Loss before income taxes of Ultratech for the year ended December 31, 2017 of $62.3 million includes acquisition costs of $17.8 million, release of inventory fair value step-up related to purchase accounting of $9.6 million, amortization expense on intangible assets of $23.9 million, and restructuring charges of $3.3 million.

The following table presents unaudited pro forma financial information as if the acquisition of Ultratech had occurred on January 1, 2016:

		For the year ended December 31,
		2017		2016
	(in thousands, except per share amounts)
Net sales		$	546,428	$	525,752
Loss before income taxes			(90,000)		(217,783)
Diluted earnings per share		$	(1.38)	$	(4.67)

The pro-forma results were calculated by combining the audited results of the Company with the stand-alone unaudited results of Ultratech for the pre-acquisition period, and adjusting for the following:

(i) Additional amortization expense related to identified intangible assets valued as part of the purchase price allocation that would have been incurred starting on January 1, 2016.

(ii) Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred starting on January 1, 2016.

(iii) All acquisition related costs incurred by the Company as well as by Ultratech pre-acquisition have been removed from the year ended December 31, 2017 and included in the year ended December 31, 2016, as such expenses would have been incurred in the first quarter following the acquisition.

(iv) All amortization of inventory step-up has been removed from the year ended December 31, 2017 and recorded in the year ended December 31, 2016, as such costs would have been incurred as the corresponding inventory was sold.

(v) Additional interest expense related to the Convertible Senior Notes (see Note 12, “Debt”) as if they had been issued on January 1, 2016.

(vi) Income tax expense (benefit) was adjusted for the impact of the above adjustments for each period.

(vii) All shares issued in connection with the acquisition were considered outstanding as of January 1, 2016 for purposes of calculating diluted earnings per share.

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 6 — Goodwill and Intangible Assets

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The following table presents the changes in goodwill balances during the years indicated:

	Gross carrying		Accumulated
	amount		impairment		Net amount
	(in thousands)
Balance at December 31, 2016	$	238,108	$	123,200	$	114,908
Acquisition		192,223		—		192,223
Balance at December 31, 2017		430,331		123,200		307,131
Impairment		—		122,829		(122,829)
Balance at December 31, 2018	$	430,331	$	246,029	$	184,302

The Company performs its annual goodwill impairment test at the beginning of the fourth quarter each year. As the Company maintains a single goodwill reporting unit, it determines the fair value of its reporting unit based upon the Company’s adjusted market capitalization. The adjusted market capitalization is calculated by multiplying the average share price of the Company’s common stock for the last ten trading days prior to the measurement date by the number of outstanding common shares and adding a control premium. The control premium is estimated using historical transactions in similar industries. The annual test performed at the beginning of the fourth quarter of fiscal 2017 and 2018 did not result in any potential impairment as the fair value of the reporting unit was determined to exceed the carrying amount of the reporting unit.

As a result of a significant decline in the Company’s stock price during the fourth quarter, the Company concluded it was appropriate to perform an interim goodwill impairment test as of the end of the fourth quarter. The fair value of its reporting unit, as calculated using the adjusted market capitalization approach noted above, was determined to be below the carrying value of the reporting unit, and the Company recorded an impairment charge equal to the excess of carrying value over fair value, or $122.8 million, for the year ended December 31, 2018. The impairment charge is included in “Asset impairment” in the Consolidated Statements of Operations. The valuation of goodwill will continue to be subject to changes in the Company’s market capitalization and observable market control premiums. This analysis is sensitive to changes in the Company’s stock price and absent other qualitative factors, the Company may be required to record additional goodwill impairment charges in future periods if the stock price declines and remains depressed for an extended period of time. 

The components of purchased intangible assets were as follows:

		December 31, 2018						December 31, 2017
	Weighted
	Average			Accumulated						Accumulated
	Remaining	Gross		Amortization				Gross		Amortization
	Amortization	Carrying		and		Net		Carrying		and		Net
	Period	Amount		Impairment		Amount		Amount		Impairment		Amount
	(in years)	(in thousands)
Technology	6.4	$	337,218	$	290,808	$	46,410	$	307,588	$	133,121	$	174,467
Customer relationships	10.2		164,595		136,126		28,469		164,595		39,336		125,259
In-process R&D	—		13,710		10,530		3,180		43,340		—		43,340
Trademarks and tradenames	5.4		30,910		23,899		7,011		30,910		4,321		26,589
Other	1.3		3,686		3,607		79		3,686		3,498		188
Total	7.3	$	550,119	$	464,970	$	85,149	$	550,119	$	180,276	$	369,843

Other intangible assets primarily consist of patents, licenses, and backlog.

During the second quarter of 2018, the Company lowered its projected results for the Ultratech asset group, which were significantly below the projected results at the time of the acquisition. The reduced projections were based on lower than expected unit volume of certain smartphones, which incorporate advanced packaging methods such as fan-out wafer level packaging (“FOWLP”), and a delay in the adoption of FOWLP advanced packaging by other electronics manufacturers, both of which slowed orders and reduced revenue projections for the Company’s advanced packaging lithography systems. In addition, there has been a delay in the build out of 28nm facilities by companies in China who were expected to purchase the Company’s Laser Spike Anneal systems. Taken together, the reduced projections identified during the second quarter of 2018 required the Company to assess the Ultratech asset group for impairment. As a result of the analysis, which included projected cash flows that required the use of unobservable inputs, the Company recorded non-cash impairment charges of $216.4 million and $35.9 million related to definite-lived intangible assets and in-process research and development assets, respectively, during the second quarter of 2018. The impairment charge is included in “Asset impairment” in the Consolidated Statement of Operations. Subsequently, certain in-process research and development projects were completed and moved to the “Technology” line in the above table.

During 2016, the Company decided to reduce future investments in certain technologies and, as a result, recorded a non-cash impairment charge of $54.3 million for the related intangible purchased technology. The impairment charge was based on projected cash flows that required the use of unobservable inputs and was recorded in “Asset impairment” in the Consolidated Statements of Operations.

Based on the intangible assets recorded at December 31, 2018, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated annual amortization expense, excluding in-process R&D, is expected to be as follows:

	Amortization
	(in thousands)
2019	$	16,820
2020		15,894
2021		12,772
2022		10,438
2023		8,675
Thereafter		17,370
Total	$	81,969

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Inventories

12 Months Ended

Dec. 31, 2018

Inventories

Inventories

Note 7 — Inventories

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Inventories consist of the following:

	December 31,
	2018		2017
	(in thousands)
Materials	$	90,816	$	59,919
Work-in-process		42,354		37,222
Finished goods		23,141		23,125
Total	$	156,311	$	120,266

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Property, Plant, and Equipment and Assets Held for Sale

12 Months Ended

Dec. 31, 2018

Property, Plant, and Equipment and Assets Held for Sale

Property, Plant, and Equipment and Assets Held for Sale

Note 8 — Property, Plant, and Equipment and Assets Held for Sale

Property and equipment, net, consist of the following:

	December 31,
	2018		2017		Average Useful Life
	(in thousands)
Land	$	5,669	$	5,669	N/A
Building and improvements		61,124		54,449	10 – 40 years
Machinery and equipment (1)		128,385		126,829	3 – 10 years
Leasehold improvements		9,033		10,073	3 – 7 years
Gross property, plant, and equipment		204,211		197,020
Less: accumulated depreciation and amortization		123,927		111,962
Net property, plant, and equipment	$	80,284	$	85,058

(1) Machinery and equipment also includes software, furniture, and fixtures

Depreciation expense was $17.6 million, $14.6 million, and $13.4 million for the years ended December 31, 2018, 2017, and 2016, respectively. During 2016, the Company decided to reduce future investments in certain technologies and, as a result, recorded an impairment charge of $3.3 million of property, plant, and equipment.

As part of the Company’s efforts to reduce costs, enhance efficiency, and streamline operations, the Company removed certain lab equipment that is no longer required and recorded a non-cash impairment charge of $6.2 million for the year ended December 31, 2016. Additionally, as part of that initiative, the Company listed its two facilities in South Korea for sale. When each facility was reclassified as held for sale, the Company determined that the carrying values of the buildings exceeded their fair market values, less cost to sell, and recorded net impairment charges of $4.5 million for the year ended December 31, 2016. Both facilities were sold before the end of 2016 at prices that approximated the revised carrying values.

Finally, during the year ended December 31, 2016, the Company recorded an impairment charge of approximately $1.2 million related to an owned property in St. Paul, Minnesota. The property was sold during 2017, resulting in an additional impairment charge of $0.7 million for the year ended December 31, 2017.There were no assets held for sale as of December 31, 2018 and 2017. All impairment charges were recorded in “Asset impairment” in the Consolidated Statements of Operations.

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Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2018

Accrued Expenses and Other Liabilities

Accrued Expenses and Other Liabilities

Note 9 — Accrued Expenses and Other Liabilities

The components of accrued expenses and other current liabilities were as follows:

	December 31,
	2018		2017
	(in thousands)
Payroll and related benefits	$	20,486	$	32,996
Warranty		7,852		6,532
Interest		4,321		4,430
Professional fees		2,897		3,942
Merger consideration payable		—		2,662
Sales, use, and other taxes		2,670		2,144
Restructuring liability		2,213		1,520
Other		6,011		3,842
Total	$	46,450	$	58,068

Customer deposits and deferred revenue

Customer deposits totaled $28.3 million and $41.5 million at December 31, 2018 and 2017, respectively, which are included in “Customer deposits and deferred revenue” in the Consolidated Balance Sheets. Deferred revenue represents amounts billed, other than deposits, in excess of the revenue that can be recognized on a particular contract at the balance sheet date. Changes in deferred revenue were as follows:

	(in thousands)
Balance - December 31, 2017	$	70,536
Deferral of revenue		10,251
Recognition of previously deferred revenue		(36,372)
Balance - December 31, 2018	$	44,415

As of December 31, 2018, the Company has approximately $74.0 million of remaining performance obligations on contracts with an original estimated duration of one year or more, of which approximately 67% is expected to be recognized within one year, with the remaining amounts expected to be recognized between one to three years. The Company has elected to exclude disclosures regarding remaining performance obligations that have an original expected duration of one year or less.

Other liabilities

As part of the acquisition of Ultratech, the Company assumed an executive non-qualified deferred compensation plan that allowed qualifying executives to defer cash compensation. The plan was frozen at the time of acquisition and no further contributions have been made. At December 31, 2018 and 2017, plan assets approximated $3.2 million and $3.4 million, respectively, representing the cash surrender value of life insurance policies and is included within “Other assets” in the Consolidated Balance Sheets, while plan liabilities approximated $3.5 million and $4.7 million, respectively and is included within “Other liabilities” in the Consolidated Balance Sheets. Other liabilities also included asset retirement obligations of $3.2 million and $3.3 million at December 31, 2018 and 2017, respectively, medical and dental benefits for former executives of $2.2 million at both December 31, 2018 and 2017, and income tax payables of $1.0 million at December 31, 2018.

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Restructuring Charges

12 Months Ended

Dec. 31, 2018

Restructuring Charges

Restructuring Charges

Note 10 — Restructuring Charges

During 2017, the Company initiated certain restructuring activities related to the Company’s efforts to streamline operations, enhance efficiencies, and reduce costs, as well as reduce the Company’s investments in certain technology development. In addition, during 2017, the Company began the Ultratech acquisition integration process to enhance efficiencies, resulting in reductions in headcount and other facility costs. During the year ended December 31, 2018, additional accruals were recognized and payments were made related to these restructuring initiatives.

During the second quarter of 2018, the Company initiated plans to further reduce excess capacity associated with the manufacture and support of the Company’s advanced packaging lithography and 3D wafer inspection systems by consolidating these operations into its San Jose, California facility. As a result of this and other cost saving initiatives, the Company announced headcount reductions of approximately 40 employees and recorded restructuring charges related to these actions of $2.8 million for the year ended December 31, 2018, consisting principally of personnel severance and related costs. The Company expects the consolidation to be completed in the first quarter of 2019, and expects to incur immaterial additional restructuring costs as this initiative is completed.

During the third quarter of 2018, the Company initiated additional restructuring activities to further reduce costs, including headcount reductions impacting approximately 35 employees and recorded restructuring charges related to these actions of $1.2 million, consisting principally of personnel severance and related costs. This initiative was completed by the end of 2018. Restructuring expense for the year ended December 31, 2018 included non-cash charges of $1.2 million related to accelerated share-based compensation for employee terminations, compared to $1.9 million for the comparable prior year period.

The following table shows the amounts incurred and paid for restructuring activities during the years ended December 31, 2018, 2017, and 2016 and the remaining accrued balance of restructuring costs at December 31, 2018, which is included in “Accrued expenses and other current liabilities” in the Consolidated Balance Sheets:

	Personnel		Facility
	Severance and		Related Costs
	Related Costs		and Other		Total
	(in thousands)
Balance - December 31, 2015	$	824	$	—	$	824
Provision		4,544		1,098		5,642
Changes in estimate		(2)		—		(2)
Payments		(3,570)		(1,098)		(4,668)
Balance - December 31, 2016		1,796		—		1,796
Provision		4,714		5,257		9,971
Payments		(4,990)		(5,257)		(10,247)
Balance - December 31, 2017		1,520		—		1,520
Provision		4,681		2,714		7,395
Payments		(4,058)		(2,644)		(6,702)
Balance - December 31, 2018	$	2,143	$	70	$	2,213

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies

Commitments and Contingencies

Note 11 — Commitments and Contingencies

Warranty

The Company typically provides standard warranty coverage on its systems for one year from the date of final acceptance by providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost when revenue is recognized on the related system. Warranty cost is included in “Cost of sales” in the Consolidated Statements of Operations. The estimated warranty cost is based on the Company’s historical experience with its systems and regional labor costs. The Company calculates the average service hours by region and parts expense per system utilizing actual service records to determine the estimated warranty charge. The Company updates its warranty estimates on a quarterly basis when the actual product performance or field expense differs from original estimates.

Changes in the Company’s product warranty reserves were as follows:

		December 31,
	2018		2017		2016
		(in thousands)
Balance, beginning of the year	$	6,532	$	4,217	$	8,159
Warranties issued		6,737		5,817		3,916
Addition from Ultratech acquisition		—		1,889		—
Consumption of reserves		(6,573)		(6,330)		(6,433)
Changes in estimate		1,156		939		(1,425)
Balance, end of the year	$	7,852	$	6,532	$	4,217

Minimum Lease Commitments

Minimum lease commitments at December 31, 2018 for property and equipment under operating lease agreements (exclusive of renewal options) are payable as follows:

	Operating
	Leases
	(in thousands)
Payments due by period:
2019	$	5,143
2020		5,056
2021		2,432
2022		1,812
2023		1,066
Thereafter		548
Total	$	16,057

Lease expense was $6.3 million, $5.3 million, and $2.5 million for the years ended December 31, 2018, 2017, and 2016, respectively. In addition, the Company is obligated under such leases for certain other expenses, including real estate taxes and insurance.

Legal Proceedings

On June 8, 2018, an Ultratech shareholder who received Veeco stock as part of the consideration for the Ultratech acquisition filed a purported class action complaint in the Superior Court of the State of California, County of Santa Clara, captioned Wolther v. Maheshwari et al., Case No. 18CV329690, on behalf of himself and others who purchased or acquired shares of Veeco pursuant to the registration statement and prospectus which Veeco filed with the SEC in connection with the Ultratech acquisition (the “Wolther Action”). On August 2 and August 8, 2018, two purported class action complaints substantially similar to the Wolther Action were filed on behalf of different plaintiffs in the same court as the Wolther Action. These cases have been consolidated with the Wolther Action, and a consolidated complaint was filed on December 11, 2018. The consolidated complaint seeks to recover damages and fees under Sections 11, 12, and 15 of the Securities Act of 1933 for, among other things, alleged false/misleading statements in the registration statement and prospectus relating to the Ultratech acquisition, relating primarily to the alleged failure to disclose delays in the advanced packaging business, increased MOCVD competition in China, and an intellectual property dispute. The defendants filed a demurrer on January 10, 2019, asking the court to dismiss the consolidated complaint for failure to state a claim. The demurrer is scheduled to be heard by the court on March 15, 2019. Veeco believes this lawsuit is without merit and intends to vigorously contest this matter.

On December 21, 2018, a purported Veeco stockholder filed a derivative action in the Superior Court of the State of California, County of Santa Clara, captioned Vladimir Gusinsky Revocable Trust v. Peeler, et al., Case No. 18CV339925, on behalf of nominal defendant Veeco. The complaint seeks to assert claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment against current and former Veeco directors premised on purported misstatements and omissions in the registration statement relating to the Ultratech acquisition. On January 2, 2019, the court ordered this action stayed until the case management conference, which is scheduled for March 15, 2019. Veeco believes this lawsuit is without merit and intends to vigorously contest this matter.

The Company is involved in various other 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.

Concentrations of Credit Risk

The Company depends on purchases from its ten largest customers, which accounted for 61% and 67% of net accounts receivable at December 31, 2018 and 2017, respectively.

Customers who accounted for more than 10% of net accounts receivable or net sales are as follows:

	Accounts Receivable				Net Sales
	December 31,				For the Year Ended December 31,
Customer	2018		2017		2018		2017		2016
Customer A	*		24	%	*		21	%	14	%
Customer B	22	%	*		*		*		*
Customer C	*		*		12	%	*		*

*Less than 10% of aggregate accounts receivable or net sales

The Company manufactures and sells its products to companies in different geographic locations. Refer to Note 18, “Segment Reporting and Geographic Information,” for additional information. In certain instances, the Company requires deposits from its customers for a portion of the sales price in advance of shipment and performs periodic credit evaluations on its customers. Where appropriate, the Company requires letters of credit on certain non-U.S. sales arrangements. Receivables generally are due within 30 to 90 days from the date of invoice.

Receivable Purchase Agreement

In December 2017, 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 $23.0 million at any point in time for a term of one year. Pursuant to this agreement, the Company sold $15.0 million of Receivables during the year ended December 31, 2017 and maintained $8.0 million available under the agreement for additional sales of Receivables as of December 31, 2017. No sales were made under this agreement in 2018, and the agreement was terminated in 2018. 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.

Suppliers

The Company outsources certain functions to third parties, including the manufacture of several of its systems. While the Company relies on its outsourcing partners to perform their contracted functions, the Company maintains some level of internal manufacturing capability for these systems. In addition, certain of the components and sub-assemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. The failure of the Company’s present outsourcing partners and suppliers to meet their contractual obligations and the Company’s inability to make alternative arrangements or resume the manufacture of these systems could have a material adverse effect on the Company’s revenues, profitability, cash flows, and relationships with its customers.

The Company had deposits with its suppliers of $12.8 million and $7.6 million at December 31, 2018 and 2017, respectively, that were included in “Prepaid expenses and other current assets” on the Consolidated Balance Sheets.

Purchase Commitments

The Company had purchase commitments of $91.5 million at December 31, 2018, substantially all of which will come due within one year. Purchase commitments are primarily for inventory used in manufacturing products and are partially offset by existing deposits with suppliers.

Bank Guarantees

The Company has bank guarantees and letters of credit issued by a financial institution on its behalf as needed. At December 31, 2018, outstanding bank guarantees and letters of credit totaled $6.8 million and unused bank guarantees and letters of credit of $58.9million were available to be drawn upon.

Other

On November 1, 2018, the Company announced an attack on its computer systems. Upon learning of the attack, forensic experts were promptly engaged to assist with the investigation. The Company also notified law enforcement of the incident.

The investigation, which has largely been completed, determined that the Company’s computer systems were accessed by what appears to be a highly-sophisticated actor at various times over a period of years. It appears that proprietary and confidential information of the Company and certain personal information of the Company’s employees was accessed and may have been compromised as a result of the incident. Based on the evidence available at this time, the extent and impact of the compromise cannot be determined. The Company notified employees of this incident. The Company is continuing to analyze the incident, along with appropriate remediation of the Company’s computer systems. That analysis and the related remediation efforts could ultimately reveal that additional information was revealed or compromised.

Based on the evidence available at this time, the Company does not know if or when it will be able to determine the potential impact to the Company, whether it will be able to identify who is responsible for this attack or whether it will be able to pursue legal action or other remedies to protect any compromised information or recover damages related to the attack. This attack, including the expenses incurred to address it, may have an adverse effect on the Company’s results of operations and/or financial condition. In addition, this attack may have caused the loss or misuse of proprietary and confidential information of the Company or others, result in litigation and potential liability, damage the Company’s reputation and/or otherwise harm its business.

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Debt

12 Months Ended

Dec. 31, 2018

Debt

Debt

Note 12 — Debt

Convertible Senior Notes

On January 10, 2017, the Company issued $345.0 million of 2.70% convertible senior unsecured notes (the “Convertible Senior Notes”). The Company received net proceeds, after deducting underwriting discounts and fees and expenses payable by the Company, of approximately $335.8 million. The Convertible Senior Notes bear interest at a rate of 2.70% per year, payable semiannually in arrears on January 15 and July 15 of each year, commencing on July 15, 2017. The Convertible Senior Notes mature on January 15, 2023 (the “Maturity Date”), unless earlier purchased by the Company, redeemed, or converted.

The Convertible Senior Notes are unsecured obligations of Veeco and rank senior in right of payment to any of Veeco’s subordinated indebtedness; equal in right of payment to all of Veeco’s unsecured indebtedness that is not subordinated; effectively subordinated in right of payment to any of Veeco’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to all indebtedness and other liabilities (including trade payables) of Veeco’s subsidiaries.

The Convertible Senior Notes are convertible into cash, shares of the Company’s common stock, or a combination thereof, at the Company’s election, upon the satisfaction of specified conditions and during certain periods as described below. The initial conversion rate is 24.9800 shares of the Company’s common stock per $1,000 principal amount of Convertible Senior Notes, representing an initial effective conversion price of $40.03 per share of common stock. The conversion rate may be subject to adjustment upon the occurrence of certain specified events as provided in the indenture governing the Convertible Senior Notes, dated January 18, 2017 between the Company and U.S. Bank National Association, as trustee, but will not be adjusted for accrued but unpaid interest.

Holders may convert all or any portion of their notes, in multiples of one thousand dollar principal amount, at their option at any time prior to the close of business on the business day immediately preceding October 15, 2022 only under the following circumstances:

(i) During any calendar quarter (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

(ii) During the five consecutive business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per one thousand dollar principal amount of Convertible Senior Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Veeco’s common stock and the conversion rate on each such trading day;

(iii) If the Company calls any or all of the Convertible Senior Notes for redemption at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or

(iv) Upon the occurrence of specified corporate events.

On or after October 15, 2022, until the close of business on the business day immediately preceding the Maturity Date, holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion by the holders, the Company may elect to settle such conversion in shares of its common stock, cash, or a combination thereof. As a result of its cash conversion option, the Company segregated the liability component of the instrument from the equity component. The liability component was measured by estimating the fair value of a non-convertible debt instrument that is similar in its terms to the Convertible Senior Notes. The calculation of the fair value of the debt component required the use of Level 3 inputs, including utilization of convertible investors’ credit assumptions and high yield bond indices. Fair value was estimated through discounting future interest and principal payments, an income approach, due under the Convertible Senior Notes at a discount rate of 7.00%, an interest rate equal to the estimated borrowing rate for similar non-convertible debt. The excess of the aggregate face value of the Convertible Senior Notes over the estimated fair value of the liability component of $72.5 million was recognized as a debt discount and recorded as an increase to additional paid-in capital and will be amortized over the expected life of the Convertible Senior Notes using the effective interest rate method. Amortization of the debt discount is recognized as non-cash interest expense.

The transaction costs of $9.2 million incurred in connection with the issuance of the Convertible Senior Notes were allocated to the liability and equity components based on their relative values. Transaction costs allocated to the liability component are being amortized using the effective interest rate method and recognized as non-cash interest expense over the expected term of the Convertible Senior Notes. Transaction costs allocated to the equity component of $1.9 million reduced the value of the equity component recognized in stockholders' equity.

The carrying value of the Convertible Senior Notes is as follows:

	December 31,
	2018		2017
	(in thousands)
Principal amount	$	345,000	$	345,000
Unamortized debt discount		(52,336)		(63,022)
Unamortized transaction costs		(5,272)		(6,348)
Net carrying value	$	287,392	$	275,630

Total interest expense related to the Convertible Senior Notes is as follows:

	For the year ended December 31,
	2018		2017
	(in thousands)
Cash Interest Expense
Coupon interest expense	$	9,315	$	8,901
Non-Cash Interest Expense
Amortization of debt discount		10,686		9,490
Amortization of transaction costs		1,076		956
Total Interest Expense	$	21,077	$	19,347

The Company determined the Convertible Senior Notes is a Level 2 liability in the fair value hierarchy and estimated its fair value as $255.3 million at December 31, 2018.

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2018

Derivative Financial Instruments

Derivative Financial Instruments

Note 13 — Derivative Financial Instruments

The Company is exposed to financial market risks arising from changes in currency exchange rates. Changes in currency exchange rate changes could affect the Company’s foreign currency denominated monetary assets and liabilities and forecasted cash flows. The Company entered into monthly forward derivative contracts with the intent of mitigating a portion of this risk. The Company only used derivative financial instruments in the context of hedging and not for speculative purposes and had not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these contracts were recorded as “Other, net” in the Company’s Consolidated Statements of Operations. The Company executed derivative transactions with highly rated financial institutions to mitigate counterparty risk.

The Company did not have any outstanding derivative contracts at December 31, 2018. A summary of the foreign exchange derivatives outstanding on December 31, 2017 is as follows:

	December 31, 2017
	Fair Value		Maturity Dates	Notional Amount
	(in thousands)
Foreign currency exchange forwards	$	—	January 2018	$	622

The following table shows the gains and (losses) from currency exchange derivatives during the years ended December 31, 2018, 2017, and 2016, which are included in “Other, net” in the Consolidated Statements of Operations as well as the weighted average notional amount of derivatives outstanding for each period:

	Year ended December 31,
	2018			2017			2016
		Gains (losses)	Weighted average notional amount		Gains (losses)	Weighted average notional amount		Gains (losses)	Weighted average notional amount
	(in thousands)
Foreign currency exchange forwards	$	327	2,869	$	(6)	314	$	219	7,175

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Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity

Equity

Note 14 — Stockholders’ Equity

Accumulated Other Comprehensive Income

The following table presents the changes in the balances of each component of AOCI, net of tax:

					Unrealized
					Gains (Losses)
	Foreign		Minimum		on Available
	Currency		Pension		for Sale
	Translation		Liability		Securities		Total
	(in thousands)
Balance - December 31, 2015	$	2,246	$	(866)	$	(32)	$	1,348
Other comprehensive income (loss), before reclassifications		(19)		—		(6)		(25)
Amounts reclassified from AOCI		(430)		866		18		454
Other comprehensive income (loss)		(449)		866		12		429
Balance - December 31, 2016		1,797		—		(20)		1,777
Other comprehensive income (loss)		42		—		(7)		35
Balance - December 31, 2017		1,839		—		(27)		1,812
Other comprehensive income (loss)		(3)		—		11		8
Balance - December 31, 2018	$	1,836	$	—	$	(16)	$	1,820

The Company did not allocate additional tax expense (benefit) to other comprehensive income (loss) for all years presented as the Company is in a full valuation allowance position such that a deferred tax asset related to amounts recognized in other comprehensive income is not regarded as realizable on a more-likely-than-not basis.

During 2016, the Company finalized the process to terminate a defined benefit plan. As a result, the Company reclassified the minimum pension liability of $0.9 million, net of a tax benefit of $0.4 million, from “Accumulated other comprehensive income” in the Consolidated Balance Sheets to “Other,  net” in the Consolidated Statements of Operations. Additionally, the Company completed its plan to liquidate one of its subsidiaries in Korea. As a result of this liquidation, a cumulative translation gain of $0.4 million was reclassified from “Accumulated other comprehensive income” to “Other, net” in the Consolidated Statements of Operations.

Preferred Stock

The Board of Directors has authority under the Company’s Certificate of Incorporation to issue shares of preferred stock, par value $0.01, with voting and economic rights to be determined by the Board of Directors. As of December 31, 2018, no preferred shares have been issued.

Treasury Stock

The share repurchase program authorized by the Company’s Board of Directors in October 2015 expired on October 28, 2017. On December 11, 2017, the Company’s Board of Directors authorized a new program to repurchase up to $100 million of the Company’s common stock to be completed through December 11, 2019. At December 31, 2018, $14.3 million of the $100 million had been utilized. Repurchases are expected to be made from time to time in the open market or in privately negotiated transactions in accordance with applicable federal securities laws.  

The Company records treasury stock purchases under the cost method using the first-in, first-out (“FIFO”) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital. If the Company reissues treasury stock at an amount below its acquisition cost and if additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is charged to accumulated deficit.

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Stock Plans

12 Months Ended

Dec. 31, 2018

Stock Plans

Stock Plans

Note 15 — Stock Plans

Share-based incentive awards are provided to employees under the terms of the Company’s equity incentive compensation plans (the “Plans”), which are administered by the Compensation Committee of the Board of Directors. The 2010 Plan was approved by the Company’s shareholders. The Company’s employees, non-employee directors, and consultants are eligible to receive awards under the 2010 Stock Incentive Plan (as amended to date, the “2010 Plan”), which can include non-qualified stock options, incentive stock options, restricted share awards (“RSAs”), restricted share units (“RSUs”), performance share awards (“PSAs”), performance share units (“PSUs”), share appreciation rights, dividend equivalent rights, or any combination thereof. The Company settles awards under the Plans with newly issued shares or with shares held in treasury.

In 2013, the Board of Directors granted equity awards to certain employees under the Company’s 2013 Inducement Stock Incentive Plan (the “Inducement Plan”). The Company issued 124,500 stock option shares and 87,000 RSUs under this plan. Stock options under this plan vest over a three year period and have a 10-year term, and RSUs under this plan vest over a two or four year period. At December 31, 2013, the Inducement Plan was merged into the 2010 Plan and is considered an inactive plan with no further shares available for grant. At December 31, 2018, there are 2,000 option shares and no RSUs outstanding under the Inducement Plan.

The Company is authorized to issue up to 10.6 million shares under the 2010 Plan, including additional shares authorized under plan amendments approved by shareholders in 2016 and 2013. Option awards are granted with an exercise price equal to the closing price of the Company’s common stock on the trading day prior to the date of grant; option awards generally vest over a three year period and have a seven or ten year term. RSAs and RSUs generally vest over one to five years. Certain option and share awards provide for accelerated vesting if there is a change in control, as defined in the 2010 Plan. At December 31, 2018, there are 1.2 million option shares and 0.9 million RSUs and PSUs outstanding under the 2010 Plan.

During 2016, the Company’s Board of Directors approved the 2016 Employee Stock Purchase Plan (“ESPP”). The Company is authorized to issue up to 750,000 shares under the ESPP. Under the ESPP, substantially all employees in the U.S. may purchase the Company’s common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of the Company’s common stock at the beginning or end of each six-month Offer Period, as defined in the ESPP, and subject to certain limits. The ESPP was approved by the Company’s shareholders.

During 2017, in connection with the acquisition of Ultratech, the Company assumed certain restricted stock units (the “Assumed RSUs”) available and outstanding under the Ultratech, Inc. 1993 Stock Option/Stock Issuance Plan, as amended (the “Ultratech Plan”). The Assumed RSUs remain subject to the terms set forth in the award agreement governing the award and the Ultratech Plan, except that the Assumed RSUs relate to shares of Company common stock and the number of restricted stock units was adjusted pursuant to the terms of the acquisition to reflect the difference in the value of a share of Company common stock and a share of Ultratech common stock prior to closing the acquisition. The Assumed RSUs were converted into 338,144 restricted stock units of the Company and generally vest over 50 months. After the acquisition and notwithstanding any other provisions of the Ultratech Plan, no further grants will be made under the Ultratech Plan, and the Company is solely maintaining the Ultratech Plan with respect to the Assumed RSUs. At December 31, 2018, there are 30,200 RSUs outstanding under the Ultratech Plan.

Shares Reserved for Future Issuance

At December 31, 2018, the Company has 4.5 million shares reserved to cover exercises of outstanding stock options, vesting of RSUs, and additional grants under the 2010 Plan.At December 31, 2018, the Company has 0.2 million shares reserved to cover future issuances under the ESPP Plan.

Share-Based Compensation

The Company recognized share-based compensation in the following line items in the Consolidated Statements of Operations for the periods indicated:

	For the year ended December 31,
	2018		2017		2016
	(in thousands)
Cost of sales	$	1,885	$	2,505	$	1,956
Research and development		3,611		2,957		3,324
Selling, general, and administrative		9,417		12,851		10,433
Restructuring		1,161		1,880		—
Acquisition costs		—		4,203		—
Total	$	16,074	$	24,396	$	15,713

The Company did not realize any tax benefits associated with share-based compensation for the years ended December 31, 2018, 2017, and 2016 due to the full valuation allowance on its U.S. deferred tax assets. See Note 17, “Income Taxes” for additional information. The Company capitalized an immaterial amount of share-based compensation into inventory for the years ended December 31, 2018, 2017, and 2016.

Unrecognized share-based compensation costs at December 31, 2018 are summarized below:

	Unrecognized		Weighted
	Share-Based		Average Period
	Compensation		Expected to be
	Costs		Recognized
	(in thousands)		(in years)
Stock option awards	$	—	—
Restricted stock units		2,466	2.4
Restricted stock awards		19,663	2.6
Performance share units		7,356	2.4
Total unrecognized share-based compensation cost	$	29,485	2.5

Stock Option Awards

Stock options are awards issued to employees that entitle the holder to purchase shares of the Company’s stock at a fixed price. At December 31, 2018, options outstanding that have vested and are expected to vest are as follows:

				Weighted
	Number	Weighted		Average	Aggregate
	of	Average		Remaining	Intrinsic
	Shares	Exercise Price		Contractual Life	Value
	(in thousands)			(in years)	(in thousands)
Vested	1,222	$	34.80	3.0	—
Expected to vest	—		—	—	—
Total	1,222		34.80	3.0	—

The aggregate intrinsic value represents the difference between the option exercise price and $7.41, the closing price of the Company’s common stock on December 31, 2018, the last trading day of the Company’s fiscal year as reported on the NASDAQ Stock Market.

Additional information with respect to stock option activity:

		Weighted
	Number of	Average
	Shares	Exercise Price
	(in thousands)
Balance -  December 31, 2015	2,064	$	32.91
Granted	—		—
Exercised	(194)		12.18
Expired or forfeited	(294)		34.44
Balance -  December 31, 2016	1,576		35.18
Granted	—		—
Exercised	(18)		30.03
Expired or forfeited	(164)		37.47
Balance -  December 31, 2017	1,394		34.97
Granted	—		—
Exercised	—		—
Expired or forfeited	(172)		36.21
Balance -  December 31, 2018	1,222		34.80

The following table summarizes stock option information at December 31, 2018:

	Options Outstanding						Options Exercisable
				Weighted						Weighted
		Aggregate		Average	Weighted			Aggregate		Average	Weighted
		Intrinsic		Remaining	Average			Intrinsic		Remaining	Average
Range of Exercise Prices	Shares	Value		Contractual Life	Exercise Price		Shares	Value		Contractual Life	Exercise Price
	(in thousands)	(in thousands)		(in years)			(in thousands)	(in thousands)		(in years)
$20.00 - $30.00	25	$	—	3.6	$	28.13	25	$	—	3.6	$	28.13
$30.01 - $40.00	1,058		—	3.1		32.81	1,058		—	3.1		32.81
$40.01 - $50.00	12		—	1.7		45.57	12		—	1.7		45.57
$50.01 - $60.00	127		—	2.4		51.70	127		—	2.4		51.70
	1,222	$	—	3.0		34.80	1,222	$	—	3.0		34.80

The following table summarizes information on options exercised for the periods indicated:

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Cash received from options exercised	$	—	$	431	$	494
Intrinsic value of options exercised	$	—	$	51	$	1,165

RSAs, RSUs, PSAs, PSUs

RSAs are stock awards issued to employees that are subject to specified restrictions and a risk of forfeiture. RSUs are stock awards issued to employees that entitle the holder to receive shares of common stock as the awards vest. PSAs and PSUs are awards that result in an issuance of shares of common stock to employees if certain performance or market conditions are achieved. All of these awards typically vest over one to five years and vesting is subject to the employee's continued service with the Company and, in the case of performance awards, meeting certain performance or market conditions. The fair value of the awards is determined and fixed based on the closing price of the Company’s common stock on the trading day prior to the date of grant, or, in the case of performance awards with market conditions, fair value is determined using a Monte Carlo simulation.

The following table summarizes the equity activity of non-vested restricted shares and performance shares:

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
	(in thousands)
Balance -  December 31, 2015	1,398	$	31.97
Granted	1,166		17.59
Vested	(349)		32.73
Forfeited	(266)		27.31
Balance -  December 31, 2016	1,949		23.85
Granted	674		29.22
Performance award adjustments	(25)		20.95
Assumed from Ultratech	338		31.75
Vested	(831)		27.67
Forfeited	(225)		26.29
Balance -  December 31, 2017	1,880		25.41
Granted	1,257		17.37
Performance award adjustments	(5)		32.67
Vested	(523)		26.39
Forfeited	(391)		24.66
Balance -  December 31, 2018	2,218		20.74

The total fair value of shares that vested during the years ended December 31, 2018, 2017, and 2016 was $9.1 million, $22.3 million, and $7.5 million, respectively. For performance awards, the final number of shares earned will vary depending on the achievement of the actual results relative to the performance or market conditions. Each performance award is included in the table above at the grant date target share amount until the end of the performance period if not previously forfeited.

The fair value of performance awards with market conditions is estimated on the date of grant using a Monte Carlo simulation. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive these awards. The weighted average fair value and the assumptions used in calculating such values during fiscal year 2018 for performance awards with market conditions were based on estimates at the date of grant as follows:

	Year ended December 31,
	2018
Weighted average fair value	$	15.58
Dividend yield		0	%
Expected volatility factor(1)		49	%
Risk-free interest rate(2)		2.88	%
Expected life (in years)(3)		3.0

(1) Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term.

(2) The risk-free rate for periods within the contractual term is based on the U.S. Treasury yield curve in effect at the time of grant.

(3) The expected life is the number of years the Company estimates that the awards will be outstanding prior to exercise.

Employee Stock Purchase Plan

For the years ended December 31, 2018, 2017, and 2016 the Company received cash proceeds of $3.1 million, $2.6 million, and $1.2 million, and issued shares of 332,096, 163,000, and 83,000, respectively, under the ESPP Plan. The weighted average estimated values of employee purchase rights as well as the weighted average assumptions that were used in calculating such values during fiscal years 2018, 2017, and 2016 were based on estimates at the date of grant as follows:

		Year ended December 31,
	2018			2017			2016
Weighted average fair value	$	4.94		$	7.09		$	4.45
Dividend yield		0	%		0	%		0	%
Expected volatility factor(1)		62	%		36	%		43	%
Risk-free interest rate(2)		1.81	%		0.99	%		0.35	%
Expected life (in years)(3)		0.5			0.5			0.5

(1) Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term.

(2) The risk-free rate for periods within the contractual term is based on the U.S. Treasury yield curve in effect at the time of grant.

(3) The expected life is the number of years the Company estimates that the purchase rights will be outstanding prior to exercise.

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Retirement Plans

12 Months Ended

Dec. 31, 2018

Retirement Plans

Retirement Plans

Note 16 — Retirement Plans

The Company maintains a defined contribution plan for the benefit of its U.S. employees. The plan is intended to be tax qualified and contains a qualified cash or deferred arrangement as described under Section 401(k) of the Internal Revenue Code. Eligible participants may elect to contribute a percentage of their base compensation, and the Company may make matching contributions, generally equal to fifty cents for every dollar employees contribute, up to the lesser of three percent of the employee’s eligible compensation or three percent of the maximum the employee is permitted to contribute under then current Internal Revenue Code limitations. Generally, the plan calls for vesting in the Company contributions over the initial five years of a participant’s employment. In addition, the Company assumed Ultratech’s 401(k) plan as a result of the merger, and Ultratech’s plan was merged into the Company’s existing plan effective January 1, 2018. The Company provided employer contributions associated with these plans of approximately $3.0 million, $2.7 million, and $2.6 million for the years ended December 31, 2018, 2017, and 2016, respectively.

During 2016, the Company finalized the process to terminate a defined benefit plan it had acquired in the year 2000. The plan had been frozen as of September 30, 1991, and no further benefits had been accrued by participants since that date. In connection with the termination, responsibility for the payment of benefits under the plan was transferred to an insurance company. As a result, the Company reclassified the minimum pension liability of $0.9 million,net of a tax benefit of $0.4 million, from “Accumulated other comprehensive income” in the Consolidated Balance Sheets to “Other, net” in the Consolidated Statements of Operations.

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Taxes

Income Taxes

Note 17 — Income Taxes

The amounts of income (loss) before income taxes attributable to domestic and foreign operations were as follows:

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Domestic	$	(286,561)	$	(101,573)	$	(123,089)
Foreign		(147,273)		12,583		3,885
Total	$	(433,834)	$	(88,990)	$	(119,204)

Significant components of the expense (benefit) for income taxes consisted of the following:

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Current:
Federal	$	(1,682)	$	—	$	—
Foreign		2,518		(2,246)		1,937
State and local		38		15		(111)
Total current expense (benefit) for income taxes		874		(2,231)		1,826
Deferred:
Federal		205		(35,912)		1,459
Foreign		(27,932)		1,291		(589)
State and local		107		(742)		127
Total deferred expense (benefit) for income taxes		(27,620)		(35,363)		997
Total expense (benefit) for income taxes	$	(26,746)	$	(37,594)	$	2,823

The income tax expense was reconciled to the tax expense computed at the U.S. federal statutory tax rate as follows:

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Income tax expense (benefit) at U.S. statutory rates	$	(91,105)	$	(31,147)	$	(41,722)
State taxes, net of U.S. federal impact		(2,848)		(2,523)		(1,963)
Effect of international operations		11,847		10,158		8,798
Research and development tax credit		(2,230)		620		(801)
Net change in valuation allowance		7,747		1,883		50,544
Change in accrual for unrecognized tax benefits		2,868		(4,772)		(1,700)
Subsidiary liquidation		—		—		(12,435)
Share-based compensation		1,848		99		2,133
Effect of 2017 Tax Act		(1,690)		(11,344)		—
Asset impairment		46,872		—		—
Other		(55)		(568)		(31)
Total expense (benefit) for income taxes	$	(26,746)	$	(37,594)	$	2,823

The Company recognized the income tax effects of the 2017 Tax Act in its 2017 financial statements in accordance with SAB 118, which provided SEC staff guidance for the application of ASC 740 in the reporting period in which the 2017 Tax Act was signed into law. As such, the Company’s 2017 financial results included provisional amounts for specific income tax effects of the 2017 Tax Act for which the accounting under ASC 740 was incomplete but for which a reasonable estimate could be determined. During the year ended December 31, 2018, the Company finalized the accounting for the tax effects of 2017 Tax Act based on legislative updates currently available and recorded an additional income tax benefit of $1.7 million for alternative minimum tax credits that became refundable in accordance with the 2017 Tax Act. The Company also reported an increase in deferred tax assets of $6.8 million as a result of adjustments to tax attributes utilized for one-time transition tax, which was offset by a full valuation allowance.

The most significant impacts of the 2017 Tax Act on the Company’s federal income taxes for the year ended December 31, 2017 were as follows:

Reduction of the U.S. Corporate Income Tax Rate

The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were re-measured as of December 22, 2017 to reflect the reduction in the U.S. corporate income tax rate from 35 percent to 21 percent. The Company recorded an income tax benefit of $4.8 million for the year ended December 31, 2017, as the net deferred tax assets were reduced by $25.6 million with a corresponding valuation allowance reduction of $30.4 million.

One-Time Transition Tax on Foreign Earnings

As of December 31, 2017, the Company had $180.1 million of foreign earnings that was subject to the one-time transition tax. The Company used its 2017 and carryforward net operating losses to offset the impact of the transition tax. As the Company maintains a full valuation allowance against its U.S. deferred tax assets, the Company did not record an income tax expense related to the transition tax for the year ended December 31, 2017.

Valuation Allowance

The 2017 Tax Act modified the Net Operating Loss ("NOL") provisions to provide for an indefinite carryforward of NOLs arising in tax years beginning after December 31, 2017. The 2017 Tax Act also limits the amount of NOL deductions that can be used in any one year to 80 percent of the taxpayer’s taxable income, effective with respect to NOLs arising in tax years beginning after December 31, 2017. The Company recognized an income tax benefit of $6.5 million for the year ended December 31, 2017 related to a reduction in the Company’s valuation allowance as a result of the Company scheduling out the reversals of its net deferred tax assets which resulted in tax amortization on indefinite-lived intangible assets becoming available to offset existing deferred tax assets that are now expected to have an indefinite life.

Deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The tax effects of the temporary differences were as follows:

	December 31,
	2018		2017
	(in thousands)
Deferred tax assets:
Inventory valuation	$	8,943	$	8,007
Net operating losses		67,787		73,458
Credit carry forwards		52,592		34,966
Warranty and installation accruals		1,695		1,690
Share-based compensation		6,981		7,385
Other		2,182		1,832
Total deferred tax assets		140,180		127,338
Valuation allowance		(114,955)		(100,456)
Net deferred tax assets		25,225		26,882
Deferred tax liabilities:
Purchased intangible assets		15,401		45,807
Convertible Senior Notes		11,265		13,534
Depreciation		2,380		1,339
Total deferred tax liabilities		29,046		60,680
Net deferred taxes	$	(3,821)	$	(33,798)

The Company is no longer permanently reinvesting future earnings from certain foreign jurisdictions and has accrued for foreign tax withholdings of $0.6 million on its unremitted earnings as of December 31, 2018.

At December 31, 2018, the Company had U.S. federal NOL carryforwards of approximately $281.4 million, of which $16.0 million has an indefinite carryforward period, with the remaining expiring in varying amounts between 2024 and 2037, if not utilized. In connection with the Ultratech acquisition, $119.0 million of historical NOL carryforwards were acquired, which are subject to an annual limitation. The Company has $3.5 million of capital loss carryforwards that expire in 2021. At December 31, 2018, the Company had U.S. federal research and development credits of $28.3 million that will expire between 2019 and 2038. The Ultratech acquisition resulted in the carryover of $11.4 million of research and development credit carryforwards, which are subject to an annual limitation. The Company also has $9.4 million of foreign tax credits that expire in 2027. Additionally, the Company has state and local NOL carryforwards of approximately $147.6 million (a net deferred tax asset of $9.0 million, net of federal tax benefits and before the valuation allowance) that will expire between 2019 and 2038. Finally, the Company has state credits of $27.4 million, some of which are indefinite and others that will expire between 2019 and 2033.

The Company makes assessments to estimate if sufficient taxable income will be generated in the future to use existing deferred tax assets. As of December 31, 2018, the Company continued to have a cumulative three year loss with respect to its U.S. operations. As such, the Company has recorded a valuation allowance against its U.S. deferred tax assets. During 2018, the Company’s valuation allowance increased by approximately $14.5 million, including an increase of $6.8 million as a result of adjustments to tax attributes utilized for one-time transition tax.

A roll-forward of the Company’s uncertain tax positions for all U.S. federal, state, and foreign tax jurisdictions was as follows:

	December 31,
	2018		2017		2016
	(in thousands)
Balance at beginning of year	$	8,269	$	7,452	$	9,152
Additions for tax positions related to current year		2,154		511		1,038
Additions for tax positions related to prior years		1,721		3		233
Reductions for tax positions related to prior years		(934)		(4,877)		(2,826)
Reductions due to the lapse of the statute of limitations		(26)		(122)		(39)
Settlements		(47)		(287)		(106)
Additions for business combination		—		5,589		—
Balance at end of year	$	11,137	$	8,269	$	7,452

If the amount of unrecognized tax benefits at December 31, 2018 were recognized, the Company’s income tax provision would decrease by $1.5 million. The gross amount of interest and penalties accrued in income tax payable in the Consolidated Balance Sheets was approximately $0.3 million at both December 31, 2018 and 2017.

The Company, or one of its subsidiaries, files income tax returns in the United States federal jurisdiction, and various state, local, and foreign jurisdictions. All material consolidated federal income tax matters have been concluded for years through 2015 subject to subsequent utilization of NOLs generated in such years. All material state and local income tax matters have been reviewed through 2012. The majority of the Company’s foreign jurisdictions have been reviewed through 2015. The Company’s major foreign jurisdictions’ statutes of limitation remain open with respect to the tax years 2017 for China, 2015 through 2017 for Germany and Singapore, and 2017 for Taiwan. The Company does not anticipate that its uncertain tax position will change significantly within the next twelve months subject to the completion of the ongoing tax audits and any resultant settlement.

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Segment Reporting and Geographic Information

12 Months Ended

Dec. 31, 2018

Segment Reporting and Geographic Information

Segment Reporting and Geographic Information

Note 18 — Segment Reporting and Geographic Information

The Company operates and measures its results in one operating segment and therefore has one reportable segment: the development, manufacture, sales, and support of semiconductor and thin film process equipment primarily sold to make electronic devices. The Company’s Chief Operating Decision Maker, the Chief Executive Officer, evaluates performance of the Company and makes decisions regarding the allocation of resources based on total Company results.

Sales by market is as follows:

	For the year ended December 31,
	2018		2017		2016
	(in thousands)
Sales by end-market
Advanced Packaging, MEMS & RF Filters	$	90,775	$	67,406	$	67,484
LED Lighting, Display & Compound Semiconductor		249,974		248,615		145,701
Front-End Semiconductor		62,582		40,319		8,427
Scientific & Industrial		138,751		119,346		110,090
Total	$	542,082	$	475,686	$	331,702

The Company’s significant operations outside the United States include sales and service offices in China, Europe, and Rest of World. For geographic reporting, sales are attributed to the location in which the customer facility is located.

Sales and long-lived tangible assets by geographic region are as follows:

	Net Sales to Unaffiliated Customers						Long-lived Tangible Assets
	2018		2017		2016		2018		2017		2016
	(in thousands)
United States	$	125,659	$	93,433	$	85,582	$	78,503	$	81,046	$	60,012
China		194,032		106,674		84,604		81		64		219
EMEA(1)		89,102		72,979		84,181		205		231		93
Rest of World		133,289		202,600		77,335		1,495		3,717		322
Total	$	542,082	$	475,686	$	331,702	$	80,284	$	85,058	$	60,646

(1) EMEA consists of Europe, the Middle East, and Africa

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Selected Quarterly Financial Information (unaudited)

12 Months Ended

Dec. 31, 2018

Selected Quarterly Financial Information (unaudited)

Selected Quarterly Financial Information (unaudited)

Note 19 — Selected Quarterly Financial Information (unaudited)

The following table presents selected unaudited financial data for each fiscal quarter of 2018 and 2017. Although unaudited, this information has been prepared on a basis consistent with the Company’s audited Consolidated Financial Statements and, in the opinion of management, reflects all adjustments (consisting only of normal recurring adjustments) that are considered necessary for a fair presentation of this information in accordance with GAAP. Such quarterly results are not necessarily indicative of future results of operations.

	Fiscal 2018								Fiscal 2017
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
	(in thousands, except per share amounts)
Net sales	$	158,574	$	157,779	$	126,757	$	98,972	$	94,499	$	112,218	$	129,308	$	139,661
Gross profit		56,680		55,395		46,385		35,259		34,500		35,847		50,529		55,352
Net income (loss)		(15,827)		(237,634)		(8,953)		(144,674)		1,640		(20,817)		(23,740)		(8,479)
Basic income (loss) per common share		(0.34)		(5.02)		(0.19)		(3.11)		0.04		(0.49)		(0.51)		(0.18)
Diluted income (loss) per common share		(0.34)		(5.02)		(0.19)		(3.11)		0.04		(0.49)		(0.51)		(0.18)

Acquisition of Ultratech

During the second quarter of 2017, the Company acquired Ultratech. The results of operations of Ultratech have been included in the consolidated financial statements since the date of acquisition. Refer to Note 5, “Business Combinations,” for additional information.

Asset Impairments

During the second quarter of 2018, the Company recorded non-cash impairment charges related to the Ultratech asset group of $216.4 million and $35.9 million for definite-lived intangible assets and in-process research and development assets, respectively. Additionally, during the fourth quarter of 2018, the Company recorded a non-cash goodwill impairment charge of $122.8 million. Refer to Note 6, “Goodwill and Intangible Assets,” for additional information.

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

Schedule II - Valuation and Qualifying Accounts

Schedule II - Valuation and Qualifying Accounts

Schedule II — Valuation and Qualifying Accounts

			Additions
			Charged
	Balance at		(Credited)		Charged to				Balance at
	Beginning		to Costs and		Other				End of
Deducted from asset accounts:	of Period		Expenses		Accounts		Deductions		Period
	(in thousands)
Year ended December 31, 2018
Allowance for doubtful accounts	$	270	$	—	$	—	$	—	$	270
Valuation allowance in net deferred tax assets		100,456		14,499		—		—		114,955
	$	100,726	$	14,499	$	—	$	—	$	115,225
Year ended December 31, 2017
Allowance for doubtful accounts	$	286	$	99	$	—	$	(115)	$	270
Valuation allowance in net deferred tax assets		104,744		(49,589)		45,301		—		100,456
	$	105,030	$	(49,490)	$	45,301	$	(115)	$	100,726
Year ended December 31, 2016
Allowance for doubtful accounts	$	206	$	171	$	—	$	(91)	$	286
Valuation allowance in net deferred tax assets		54,200		50,544		—		—		104,744
	$	54,406	$	50,715	$	—	$	(91)	$	105,030

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies

Basis of Presentation

(b) Basis of Presentation

The accompanying audited Consolidated Financial Statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The Company reports interim quarters on a 13-week basis ending on the last Sunday of each period, which is determined at the start of each year. The Company’s fourth quarter always ends on the last day of the calendar year, December 31. During 2018 the interim quarters ended on April 1, July 1, and September 30, and during 2017 the interim quarters ended on April 2, July 2, and October 1. The Company reports these interim quarters as March 31, June 30, and September 30 in its interim consolidated financial statements.

Use of Estimates

(c) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, these estimates may ultimately differ from actual results. Significant items subject to such estimates and assumptions include: (i) stand-alone selling prices for the Company’s products and services; (ii) allowances for doubtful accounts; (iii) inventory obsolescence; (iv) the useful lives and expected future cash flows of property, plant, and equipment and identifiable intangible assets; (v) the fair value of the Company’s reporting unit and related goodwill; (vi) investment valuations and the valuation of derivatives, deferred tax assets, and assets acquired in business combinations; (vii) the recoverability of long-lived assets; (viii) liabilities for product warranty and legal contingencies; (ix) share-based compensation; and (x) income tax uncertainties. Actual results could differ from those estimates.

Principles of Consolidation

(d) Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period.

Foreign Currencies

(e) Foreign Currencies

Assets and liabilities of the Company’s foreign subsidiaries that operate using functional currencies other than the U.S. dollar are translated using the exchange rates in effect at the balance sheet date. Results of operations are translated using monthly average exchange rates. Adjustments arising from the translation of the foreign currency financial statements of the Company’s subsidiaries into U.S. dollars, including intercompany transactions of a long-term nature, are reported as currency translation adjustments in “Accumulated other comprehensive income” in the Consolidated Balance Sheets. Foreign currency transaction gains or losses are included in “Other, net” in the Consolidated Statements of Operations.

Revenue recognition

(f) Revenue Recognition

Revenue is recognized upon the transfer of control of the promised product or service to the customer in an amount that reflects the consideration the Company expects to receive in exchange for such product or service. The Company’s contracts with customers generally do not contain variable consideration. In the rare instances where variable consideration is included, the Company estimates the amount of variable consideration and determines what portion of that, if any, has a high probability of significant subsequent revenue reversal, and if so, that amount is excluded from the transaction price. The Company’s contracts with customers frequently contain multiple deliverables, such as systems, upgrades, components, spare parts, installation, maintenance, and service plans. Judgment is required to properly identify the performance obligations within a contract and to determine how the revenue should be allocated among the performance obligations. The Company also evaluates whether multiple transactions with the same customer or related parties should be considered part of a single contract based on an assessment of whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of one another.

When there are separate units of accounting, the Company allocates revenue to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling prices are determined based on the prices at which the Company separately sells the systems, upgrades, components, spare parts, installation, maintenance, and service plans. For items that are not sold separately, the Company estimates stand-alone selling prices generally using an expected cost plus margin approach.

Most of the Company’s revenue is recognized at a point in time when the performance obligation is satisfied. The Company considers many facts when evaluating each of its sales arrangements to determine the timing of revenue recognition, including its contractual obligations and the nature of the customer’s post-delivery acceptance provisions. The Company’s system sales arrangements, including certain upgrades, generally include field acceptance provisions that may include functional or mechanical test procedures. For many of these arrangements, a customer source inspection of the system is performed in the Company’s facility, test data is sent to the customer documenting that the system is functioning to the agreed upon specifications prior to delivery, or other quality assurance testing is performed internally to ensure system functionality prior to shipment. Historically, such source inspection or test data replicates the field acceptance provisions that are performed at the customer’s site prior to final acceptance of the system. When the Company objectively demonstrates that the criteria specified in the contractual acceptance provisions are achieved prior to delivery either through customer testing or the Company’s historical experience of its tools meeting specifications, transfer of control of the product to the customer is considered to have occurred and revenue is recognized upon system delivery since there is no substantive contingency remaining related to the acceptance provisions at that date. For new products, new applications of existing products, or for products with substantive customer acceptance provisions where the Company cannot objectively demonstrate that the criteria specified in the contractual acceptance provisions have been achieved prior to delivery, revenue and the associated costs are deferred. The Company recognizes such revenue and costs upon obtaining objective evidence that the acceptance provisions can be achieved, assuming all other revenue recognition criteria have been met.

In certain cases the Company’s contracts with customers contain a billing retention, typically 10% of the sales price, which is billed by the Company and payable by the customer when field acceptance provisions are completed. Revenue recognized in advance of the amount that has been billed is recorded as a contract asset on the Consolidated Balance Sheets.

The Company recognizes revenue related to maintenance and service contracts over time based upon the respective contract term. Installation revenue is recognized over time as the installation services are performed. The Company recognizes revenue from the sales of components, spare parts, and specified service engagements at a point in time, which is typically consistent with the time of delivery in accordance with the terms of the applicable sales arrangement.

The Company may receive customer deposits on system transactions. The timing of the transfer of goods or services related to the deposits is either at the discretion of the customer or expected to be within one year from the deposit receipt. As such, the Company does not adjust transaction prices for the time value of money. Incremental direct costs incurred related to the acquisition of a customer contract, such as sales commissions, are expensed as incurred since the expected amortization period is one year or less.

The Company has elected to treat shipping and handling costs as a fulfillment activity, and the Company includes such costs in cost of services when the Company recognizes revenue for the related goods. Taxes assessed by governmental authorities that are collected by the Company from a customer are excluded from revenue.

Warranty Costs

(g) Warranty Costs

The Company typically provides standard warranty coverage on its systems for one year from the date of final acceptance by providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost when revenue is recognized on the related system. Warranty cost is included in “Cost of sales” in the Consolidated Statements of Operations. The estimated warranty cost is based on the Company’s historical experience with its systems and regional labor costs. The Company calculates the average service hours by region and parts expense per system utilizing actual service records to determine the estimated warranty charge. The Company updates its warranty estimates on a quarterly basis when the actual product performance or field expense differs from original estimates.

Shipping and Handling Costs

(h) Shipping and Handling Costs

Shipping and handling costs are expenses incurred to move, package, and prepare the Company’s products for shipment and to move the products to a customer’s designated location. These costs are generally comprised of payments to third-party shippers. Shipping and handling costs are included in “Cost of sales” in the Consolidated Statements of Operations.

Research and Development Costs

(i) Research and Development Costs

Research and development costs are expensed as incurred and include charges for the development of new technology and the transition of existing technology into new products or services.

Advertising Expense

(j) Advertising Expense

The cost of advertising is expensed as incurred and totaled $0.9 million, $0.9 million, and $0.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Accounting for Share-Based Compensation

(k) Accounting for Share-Based Compensation

Share-based awards exchanged for employee services are accounted for under the fair value method. Accordingly, share-based compensation cost is measured at the grant date based on the fair value of the award. The expense for awards is recognized over the employee’s requisite service period (generally the vesting period of the award). The Company has elected to treat awards with only service conditions and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting period, so long as the compensation cost recognized at any date at least equals the portion of the grant date fair value of the award that is vested at that date.

In addition to stock options, restricted share awards (“RSAs”) and restricted stock units (“RSUs”) with time-based vesting, the Company grants performance share units and awards (“PSUs” and “PSAs”) that have either performance or market conditions. Compensation cost for PSUs and PSAs with performance conditions is recognized over the requisite service period based on the timing and expected level of achievement of the performance targets. A change in the assessment of performance attainment prior to the conclusion of the performance period is recognized in the period of the change in estimate. Compensation cost for PSUs and PSAs with market conditions is recognized over the requisite service period regardless of the expected level of achievement. For all PSUs and PSAs, the number of shares issued to the employee at the conclusion of the service period may vary from the original target based upon the level of attainment of the performance or market conditions.

The Company uses the Black-Scholes option-pricing model to compute the estimated fair value of option awards and purchase rights under the Employee Stock Purchase Plan. The Company uses a Monte Carlo simulation to compute the estimated fair value of awards with market conditions. The Black-Scholes model and Monte Carlo simulation include assumptions regarding dividend yields, expected volatility, expected option term, and risk-free interest rates. See Note 15, “Stock Plans,” for additional information.

See Note 1(t), “Recently Adopted Accounting Standards,” for additional information concerning the Company’s adoption of Accounting Standards Update (“ASU”) 2016-09: Stock Compensation: Improvements to Employee Share-Based Payment Accounting.

Income Taxes

(l) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in income in the period that includes the enactment date.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), which made broad and complex changes to the U.S. tax code. In response to the 2017 Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provided guidance on accounting for the tax effects of 2017 Tax Act, including addressing any uncertainty or diversity of view in applying ASC 740, Income Taxes (“ASC 740”), in the reporting period in which the 2017 Tax Act was enacted. In addition, SAB 118 provided a measurement period that should not extend beyond one year from the 2017 Tax Act enactment date for companies to complete the accounting under ASC 740. During the year ended December 31, 2018, the Company finalized the accounting for the tax effects of 2017 Tax Act.

In January 2018, the FASB released guidance on the accounting for taxes under the global intangible low-taxed income (“GILTI”) provisions of the 2017 Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign operations. The Company has made a policy election to account for income taxes incurred under GILTI as a period cost.

Concentration of Credit Risk

(m) Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, derivative financial instruments used in hedging activities, and accounts receivable. The Company invests in a variety of financial instruments and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. The Company has not experienced any material credit losses on its investments.

The Company maintains an allowance reserve for potentially uncollectible accounts for estimated losses resulting from the inability of its customers to make required payments. The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed to be uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount reasonably expected to be collected. The Company also provides allowances based on its write-off history. The allowance for doubtful accounts totaled $0.3 million at December 31, 2018 and 2017.

To further mitigate the Company’s exposure to uncollectable accounts, the Company may request certain customers provide a negotiable irrevocable letter of credit drawn on a reputable financial institution. These irrevocable letters of credit are typically issued to mature between zero and 90 days from the date the documentation requirements are met, typically when a system ships or upon receipt of final acceptance from the customer. The Company, at its discretion, may monetize these letters of credit on a non-recourse basis after they become negotiable but before maturity. The fees associated with the monetization are included in “Selling, general, and administrative” in the Consolidated Statements of Operations and were immaterial for the years ended December 31, 2018, 2017, and 2016.

Fair Value of Financial Instruments

(n) Fair Value of Financial Instruments

The carrying amounts of financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued expenses reflected in the consolidated financial statements approximate fair value due to their short-term maturities. The fair value of debt for footnote disclosure purposes, including current maturities, if any, is estimated using recently quoted market prices of the instrument, or if not available, a discounted cash flow analysis based on the estimated current incremental borrowing rates for similar types of instruments.

Cash, Cash Equivalents, and Short-Term Investments

(o) Cash, Cash Equivalents, and Short-Term Investments

All financial instruments purchased with an original maturity of three months or less at the time of purchase are considered cash equivalents. Such items may include liquid money market funds, certificate of deposit and time deposit accounts, U.S. treasuries, government agency securities, and corporate debt. Investments that are classified as cash equivalents are carried at cost, which approximates fair value. The Company’s cash and cash equivalents includes $69.6 million and $76.7 million of cash equivalents at December 31, 2018 and 2017, respectively.

A portion of the Company’s cash and cash equivalents is held by its subsidiaries throughout the world, frequently in each subsidiary’s respective functional currency, which is typically the U.S. dollar. Approximately 32% and 77% of cash and cash equivalents were maintained outside the United States at December 31, 2018 and 2017, respectively.

Marketable debt securities are generally classified as available-for-sale for use in current operations, if required, and are 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.” These securities can 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, net” in the Consolidated Statements of Operations. The specific identification method is used to determine the realized gains and losses on investments.

Non-marketable equity securities are equity securities without readily observable market prices and are included in “Other assets” in the Consolidated Balance Sheets. Non-marketable securities are measured at cost, adjusted for changes in observable prices minus impairment. Changes in fair value are included in “Other, net” in the Consolidated Statements of Operations.

Inventories

(p) Inventories

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Each quarter the Company assesses the valuation of all inventories: materials (raw materials, spare parts, and service inventory); work-in-process; and finished goods. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated net realizable value if less than cost. Estimates of net realizable value include, but are not limited to, management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general market conditions, possible alternative uses, and the ultimate realization of excess inventory. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of sales in the period the revision is made. Inventory acquired as part of a business combination is recorded at fair value on the date of acquisition. See Note 5, “Business Combinations,” for additional information.

Business Combinations

(q) Business Combinations

The Company allocates the fair value of the purchase consideration of the Company’s acquisitions to the tangible assets, intangible assets, including in-process research and development (“IPR&D”), if any, and liabilities assumed, based on estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. See Note 5, “Business Combinations,” for additional information.

Goodwill and Indefinite-Lived Intangibles

(r) Goodwill and Indefinite-Lived Intangible Assets

Goodwill is an asset representing the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is measured as the excess of the consideration transferred over the net fair value of identifiable assets acquired and liabilities assumed. Intangible assets with indefinite useful lives are measured at their respective fair values on the acquisition date. Intangible assets related to IPR&D projects are considered to be indefinite-lived until the completion or abandonment of the associated R&D efforts. If and when development is complete, the associated assets would be deemed long-lived and would then be amortized based on their respective estimated useful lives at that point in time. Goodwill and indefinite-lived intangibles are not amortized into results of operations but instead are evaluated for impairment. The Company performs the evaluation in the beginning of the fourth quarter of each year or more frequently if impairment indicators arise.

In testing goodwill for impairment, the Company may first perform a qualitative assessment of whether it is more likely than not that the reporting unit’s fair value is less than its carrying amount, and, if so, the Company then quantitatively compares the fair value of the reporting unit to its carrying amount. If the fair value exceeds the carrying amount, goodwill is not impaired. If the carrying amount exceeds fair value, the Company then records an impairment loss equal to the difference, up to the carrying value of goodwill.

The Company determines the fair value of its reporting unit based on a reconciliation of the fair value of the reporting unit to the Company’s adjusted market capitalization. The adjusted market capitalization is calculated by multiplying the average share price of the Company’s common stock for the last ten trading days prior to the measurement date by the number of outstanding common shares and adding a control premium. The control premium is estimated using historical transactions in similar industries.

In testing indefinite-lived intangible assets for impairment, the Company may first perform a qualitative assessment of whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, and, if so, the Company then quantitatively compares the fair value of the indefinite-lived intangible asset to its carrying amount. The Company determines the fair value of its indefinite-lived intangible assets using a discounted cash flow method.

Long-Lived Assets

(s) Long-Lived Assets

Long-lived 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 straight-lined if such pattern cannot be reliably determined.

Property, plant, and equipment are recorded at cost. Depreciation expense is calculated based on the estimated useful lives of the assets by using the straight-line method. Amortization of leasehold improvements is recognized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, a recoverability test is performed utilizing undiscounted cash flows expected to be generated by that asset or asset group compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models or, when available, quoted market values and third-party appraisals.

Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted

(t) Recently Adopted Accounting Standards

The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), as of January 1, 2018, using the full retrospective method. All amounts and disclosures set forth in this Form 10-K reflect these changes. The most significant financial statement impacts of adopting ASC 606 are the elimination of the constraint on revenue associated with the billing retention related to the receipt of customer final acceptance and the identification of installation services as a performance obligation. The elimination of the constraint on revenue related to customer final acceptance, which is usually about 10 percent of a system sale, is now generally recognized at the time the Company transfers control of the system to the customer, which is earlier than under the Company’s previous revenue recognition model for certain contracts that were subject to the billing constraint. The performance obligation related to installation services is now recognized as the installation services are performed, which is later than the Company’s previous revenue recognition model.

The Company applied ASC 606 retrospectively and elected to use the disclosure exemption in the transition guidance under which the Company does not disclose prior period information regarding the amount of the transaction price allocated to remaining performance obligations. The cumulative effect of the adoption was recognized as a decrease to Accumulated deficit of $6.9 million on January 1, 2016. The following tables summarize the impact of adoption on the Company’s previously reported financial position and results of operations:

		December 31, 2017
		As reported		Adjustments		As adjusted
	(in thousands)
Balance Sheet
Contract assets	$	—	$	160	$	160
Deferred cost of sales		16,060		(66)		15,994
Deferred income taxes		2,953		94		3,047
Accrued expenses and other current liabilities		60,339		(2,271)		58,068
Customer deposits and deferred revenue		108,953		3,079		112,032
Additional paid-in capital		1,053,079		(1,126)		1,051,953
Accumulated deficit		(213,376)		506		(212,870)

		Year ended December 31,
		2017						2016
		As reported		Adjustments		As adjusted		As reported		Adjustments		As adjusted
	(in thousands, except per share amounts)
Statement of Operations
Net sales		$	484,756	$	(9,070)	$	475,686	$	332,451	$	(749)	$	331,702
Cost of sales			300,438		(980)		299,458		199,593		(989)		198,604
Income tax expense (benefit)			(36,107)		(1,487)		(37,594)		2,766		57		2,823
Net income (loss)			(44,793)		(6,603)		(51,396)		(122,210)		183		(122,027)
Diluted earnings (loss) per share			(1.01)		(0.15)		(1.16)		(3.11)		0.01		(3.10)

The Company’s adoption of the standard had no impact to cash provided by or used in operating, investing, or financing activities on the Consolidated Statements of Cash Flows.

The Company adopted ASU 2016-01, Financial Instruments – Overall, as of January 1, 2018. This ASU requires certain equity investments to be measured at fair value, with changes in fair value recognized in net income. The Company measures equity investments without readily observable market prices at cost, adjusted for changes in observable prices minus impairment. Changes in measurement are included in “Other, net” in the Consolidated Statements of Operations. This ASU has not had a material impact on the consolidated financial statements upon adoption, and the Company will monitor its equity investments each reporting period for changes in observable market prices, if any, which may be material in future periods.

The Company adopted ASU 2016-09: Stock Compensation: Improvements to Employee Share-Based Payment Accounting, as of January 1, 2016. This ASU simplifies several aspects of the accounting for share-based payments. Beginning in 2016, excess tax benefits and deficiencies are recognized as income tax expense or benefit in the income statement in the reporting period incurred. The Company also made an accounting policy election to account for forfeitures when they occur. The ASU transition guidance requires that this election be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the ASU is adopted. Accordingly, the Company recorded a $1.3 million charge to the opening accumulated deficit balance as of January 1, 2016, with a corresponding adjustment to additional paid-in capital, resulting in no impact to the opening balance of total stockholders’ equity. In addition, the Company recorded additional deferred tax assets with an equally offsetting valuation allowance of $2.4 million.

(u) Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02: Leases, which, along with subsequent ASUs related to this topic, has been codified as Accounting Standards Codification 842 (“ASC 842”). ASC 842 generally requires operating lessee rights and obligations to be recognized as assets and liabilities on the balance sheet. The new standard, which is effective for the Company on January 1, 2019, offers a transition option whereby companies can recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company plans to adopt using this transition method. In addition, ASC 842 provides for a number of optional exemptions in transition. The Company expects to elect certain exemptions whereby prior conclusions regarding lease identification, lease classification, and initial direct costs are not required to be reassessed under the new standard. The Company also plans to elect allowable policies whereby the Company will not separate lease and non-lease components, and the Company will not recognize an asset or liability for leases with original terms or renewals of one year or less. Upon adoption, the Company expects to recognize an operating lease liability ranging from $12 million to $16 million based on the present value of remaining minimum rental payments on existing leases, with corresponding assets of approximately the same amount.

The Company is also evaluating other pronouncements recently issued but not yet adopted. The adoption of these pronouncements is not expected to have a material impact on our consolidated financial statements.

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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Change in Accounting Principle

Summary of impact on adoption of accounting standards on previously reported financial position and results

		December 31, 2017
		As reported		Adjustments		As adjusted
	(in thousands)
Balance Sheet
Contract assets	$	—	$	160	$	160
Deferred cost of sales		16,060		(66)		15,994
Deferred income taxes		2,953		94		3,047
Accrued expenses and other current liabilities		60,339		(2,271)		58,068
Customer deposits and deferred revenue		108,953		3,079		112,032
Additional paid-in capital		1,053,079		(1,126)		1,051,953
Accumulated deficit		(213,376)		506		(212,870)

		Year ended December 31,
		2017						2016
		As reported		Adjustments		As adjusted		As reported		Adjustments		As adjusted
	(in thousands, except per share amounts)
Statement of Operations
Net sales		$	484,756	$	(9,070)	$	475,686	$	332,451	$	(749)	$	331,702
Cost of sales			300,438		(980)		299,458		199,593		(989)		198,604
Income tax expense (benefit)			(36,107)		(1,487)		(37,594)		2,766		57		2,823
Net income (loss)			(44,793)		(6,603)		(51,396)		(122,210)		183		(122,027)
Diluted earnings (loss) per share			(1.01)		(0.15)		(1.16)		(3.11)		0.01		(3.10)

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Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Income (Loss) Per Share

Schedule of basic and diluted income (loss) per share and weighted average shares

	For the year ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Net income (loss)	$	(407,088)	$	(51,396)	$	(122,027)
Net income (loss) per common share:
Basic	$	(8.63)	$	(1.16)	$	(3.10)
Diluted	$	(8.63)	$	(1.16)	$	(3.10)
Basic weighted average shares outstanding		47,151		44,174		39,340
Effect of potentially dilutive share-based awards		—		—		—
Diluted weighted average shares outstanding		47,151		44,174		39,340
Unvested participating shares excluded from basic weighted average shares outstanding since the securityholders are not obligated to fund losses		20		72		312
Common share equivalents excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive		28		239		107
Potentially dilutive non-participating shares excluded from the diluted calculation as their effect would be antidilutive		2,474		1,744		1,896
Maximum potential shares to be issued for settlement of the Convertible Senior Notes excluded from the diluted calculation as their effect would be antidilutive		8,618		8,618		—

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

Schedule of assets measured on a recurring basis at fair value

	Level 1		Level 2		Level 3		Total
	(in thousands)
December 31, 2018
Cash equivalents
Certificate of deposits and time deposits	$	65,571	$	—	$	—	$	65,571
U.S. treasuries		3,990		—		—		3,990
Total	$	69,561	$	—	$	—	$	69,561
Short-term investments
U.S. treasuries	$	37,184	$	—	$	—	$	37,184
Corporate debt		—		8,516		—		8,516
Commercial paper		—		2,489		—		2,489
Total	$	37,184	$	11,005	$	—	$	48,189
December 31, 2017
Cash equivalents
Certificate of deposits and time deposits	$	64,249	$	—	$	—	$	64,249
U.S. treasuries		12,490		—		—		12,490
Total	$	76,739	$	—	$	—	$	76,739
Short-term investments
U.S. treasuries	$	33,895	$	—	$	—	$	33,895
Corporate debt		—		10,886		—		10,886
Commercial paper		—		2,999		—		2,999
Total	$	33,895	$	13,885	$	—	$	47,780

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Investments (Tables)

12 Months Ended

Dec. 31, 2018

Investments

Schedule of amortized cost and fair value of available-for-sale securities

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(in thousands)
December 31, 2018
U.S. treasuries	$	37,191	$	—	$	(7)	$	37,184
Corporate debt		8,525		—		(9)		8,516
Commercial paper		2,489		—		—		2,489
Total	$	48,205	$	—	$	(16)	$	48,189
December 31, 2017
U.S. treasuries	$	33,914	$	—	$	(19)	$	33,895
Corporate debt		10,894		—		(8)		10,886
Commercial paper		2,999		—		—		2,999
Total	$	47,807	$	—	$	(27)	$	47,780

Schedule of fair value and unrealized losses of available-for-sale securities in a loss position

	December 31, 2018				December 31, 2017
			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses
	(in thousands)
U.S. treasuries	$	37,184	$	(7)	$	33,895	$	(19)
Corporate debt		8,516		(9)		10,886		(8)
Total	$	45,700	$	(16)	$	44,781	$	(27)

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Business Combinations (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations

Schedule of acquisition date fair value of the consideration transferred net of cash acquired

	Acquisition Date
	(May 26, 2017)
	(in thousands)
Cash consideration, net of cash acquired of $229.4 million	$	404,490
Equity consideration (7.2 million shares issued)		228,643
Replacement equity awards attributable to pre-acquisition service		228
Acquisition date fair value	$	633,361

Summary of the estimated fair values of the assets acquired, net of cash acquired, and liabilities assumed

	Acquisition Date
	(May 26, 2017)
	(in thousands)
Short-term investments	$	47,161
Accounts receivable		45,465
Inventories		59,100
Deferred cost of sales		242
Prepaid expense and other current assets		7,217
Property, plant, and equipment		18,152
Intangible assets		346,940
Other assets		6,442
Total identifiable assets acquired		530,719
Accounts payable		24,291
Accrued expenses and other current liabilities		16,356
Customer deposits and deferred revenue		4,834
Deferred income taxes		32,478
Other liabilities		11,622
Total liabilities assumed		89,581
Net identifiable assets acquired		441,138
Goodwill		192,223
Net assets acquired	$	633,361

Schedule of classes of intangible assets acquired and the estimated weighted-average useful life of each class

	Acquisition Date
	(May 26, 2017)
	Amount		Useful life
	(in thousands)
Technology	$	158,390	9	years
Customer relationships		116,710	12	years
Backlog		3,080	6	months
In-process research and development		43,340	*
Trademark and tradenames		25,420	7	years
Intangible assets acquired	$	346,940

*In-process research and development will be amortized (or impaired) upon completion (or abandonment) of the development project.

Schedule of amounts of revenue and income (loss) from continuing operations before income taxes

	Year ended
	December 31, 2017
	(in thousands)
Net sales	$	65,280
Loss before income taxes	$	(62,284)

Schedule of pro forma financial information

		For the year ended December 31,
		2017		2016
	(in thousands, except per share amounts)
Net sales		$	546,428	$	525,752
Loss before income taxes			(90,000)		(217,783)
Diluted earnings per share		$	(1.38)	$	(4.67)

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets

Schedule of changes in goodwill

	Gross carrying		Accumulated
	amount		impairment		Net amount
	(in thousands)
Balance at December 31, 2016	$	238,108	$	123,200	$	114,908
Acquisition		192,223		—		192,223
Balance at December 31, 2017		430,331		123,200		307,131
Impairment		—		122,829		(122,829)
Balance at December 31, 2018	$	430,331	$	246,029	$	184,302

Schedule of intangible assets excluding goodwill

		December 31, 2018						December 31, 2017
	Weighted
	Average			Accumulated						Accumulated
	Remaining	Gross		Amortization				Gross		Amortization
	Amortization	Carrying		and		Net		Carrying		and		Net
	Period	Amount		Impairment		Amount		Amount		Impairment		Amount
	(in years)	(in thousands)
Technology	6.4	$	337,218	$	290,808	$	46,410	$	307,588	$	133,121	$	174,467
Customer relationships	10.2		164,595		136,126		28,469		164,595		39,336		125,259
In-process R&D	—		13,710		10,530		3,180		43,340		—		43,340
Trademarks and tradenames	5.4		30,910		23,899		7,011		30,910		4,321		26,589
Other	1.3		3,686		3,607		79		3,686		3,498		188
Total	7.3	$	550,119	$	464,970	$	85,149	$	550,119	$	180,276	$	369,843

Schedule of estimated annual amortization expense, excluding in-process R&D for intangible assets with definite useful lives

	Amortization
	(in thousands)
2019	$	16,820
2020		15,894
2021		12,772
2022		10,438
2023		8,675
Thereafter		17,370
Total	$	81,969

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Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventories

Schedule of inventories

	December 31,
	2018		2017
	(in thousands)
Materials	$	90,816	$	59,919
Work-in-process		42,354		37,222
Finished goods		23,141		23,125
Total	$	156,311	$	120,266

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Property, Plant, and Equipment and Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant, and Equipment and Assets Held for Sale

Schedule of property, plant, and equipment

	December 31,
	2018		2017		Average Useful Life
	(in thousands)
Land	$	5,669	$	5,669	N/A
Building and improvements		61,124		54,449	10 – 40 years
Machinery and equipment (1)		128,385		126,829	3 – 10 years
Leasehold improvements		9,033		10,073	3 – 7 years
Gross property, plant, and equipment		204,211		197,020
Less: accumulated depreciation and amortization		123,927		111,962
Net property, plant, and equipment	$	80,284	$	85,058

(1) Machinery and equipment also includes software, furniture, and fixtures

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Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Accrued Expenses and Other Liabilities

Schedule of accrued expenses and other current liabilities

	December 31,
	2018		2017
	(in thousands)
Payroll and related benefits	$	20,486	$	32,996
Warranty		7,852		6,532
Interest		4,321		4,430
Professional fees		2,897		3,942
Merger consideration payable		—		2,662
Sales, use, and other taxes		2,670		2,144
Restructuring liability		2,213		1,520
Other		6,011		3,842
Total	$	46,450	$	58,068

Schedule of changes in deferred revenue

	(in thousands)
Balance - December 31, 2017	$	70,536
Deferral of revenue		10,251
Recognition of previously deferred revenue		(36,372)
Balance - December 31, 2018	$	44,415

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Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring Charges

Schedule of restructuring accrual activities

	Personnel		Facility
	Severance and		Related Costs
	Related Costs		and Other		Total
	(in thousands)
Balance - December 31, 2015	$	824	$	—	$	824
Provision		4,544		1,098		5,642
Changes in estimate		(2)		—		(2)
Payments		(3,570)		(1,098)		(4,668)
Balance - December 31, 2016		1,796		—		1,796
Provision		4,714		5,257		9,971
Payments		(4,990)		(5,257)		(10,247)
Balance - December 31, 2017		1,520		—		1,520
Provision		4,681		2,714		7,395
Payments		(4,058)		(2,644)		(6,702)
Balance - December 31, 2018	$	2,143	$	70	$	2,213

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies

Schedule of changes in product warranty reserves

		December 31,
	2018		2017		2016
		(in thousands)
Balance, beginning of the year	$	6,532	$	4,217	$	8,159
Warranties issued		6,737		5,817		3,916
Addition from Ultratech acquisition		—		1,889		—
Consumption of reserves		(6,573)		(6,330)		(6,433)
Changes in estimate		1,156		939		(1,425)
Balance, end of the year	$	7,852	$	6,532	$	4,217

Schedule of future minimum lease payments under non-cancelable operating leases (exclusive of renewal options)

Minimum lease commitments at December 31, 2018 for property and equipment under operating lease agreements (exclusive of renewal options) are payable as follows:

	Operating
	Leases
	(in thousands)
Payments due by period:
2019	$	5,143
2020		5,056
2021		2,432
2022		1,812
2023		1,066
Thereafter		548
Total	$	16,057

Schedule of customers who accounted for more than 10% of our aggregate accounts receivable or net sales

	Accounts Receivable				Net Sales
	December 31,				For the Year Ended December 31,
Customer	2018		2017		2018		2017		2016
Customer A	*		24	%	*		21	%	14	%
Customer B	22	%	*		*		*		*
Customer C	*		*		12	%	*		*

*Less than 10% of aggregate accounts receivable or net sales

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Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt

Schedule of carrying value of Convertible Senior Notes

	December 31,
	2018		2017
	(in thousands)
Principal amount	$	345,000	$	345,000
Unamortized debt discount		(52,336)		(63,022)
Unamortized transaction costs		(5,272)		(6,348)
Net carrying value	$	287,392	$	275,630

Schedule of interest expense related to Convertible Senior Notes

	For the year ended December 31,
	2018		2017
	(in thousands)
Cash Interest Expense
Coupon interest expense	$	9,315	$	8,901
Non-Cash Interest Expense
Amortization of debt discount		10,686		9,490
Amortization of transaction costs		1,076		956
Total Interest Expense	$	21,077	$	19,347

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Financial Instruments

Schedule of notional amount and fair value of derivatives

	December 31, 2017
	Fair Value		Maturity Dates	Notional Amount
	(in thousands)
Foreign currency exchange forwards	$	—	January 2018	$	622

Schedule of gains and (losses) and weighted average notional amount of derivatives

	Year ended December 31,
	2018			2017			2016
		Gains (losses)	Weighted average notional amount		Gains (losses)	Weighted average notional amount		Gains (losses)	Weighted average notional amount
	(in thousands)
Foreign currency exchange forwards	$	327	2,869	$	(6)	314	$	219	7,175

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity

Schedule of the changes in the balances of each component of AOCI, net of tax

					Unrealized
					Gains (Losses)
	Foreign		Minimum		on Available
	Currency		Pension		for Sale
	Translation		Liability		Securities		Total
	(in thousands)
Balance - December 31, 2015	$	2,246	$	(866)	$	(32)	$	1,348
Other comprehensive income (loss), before reclassifications		(19)		—		(6)		(25)
Amounts reclassified from AOCI		(430)		866		18		454
Other comprehensive income (loss)		(449)		866		12		429
Balance - December 31, 2016		1,797		—		(20)		1,777
Other comprehensive income (loss)		42		—		(7)		35
Balance - December 31, 2017		1,839		—		(27)		1,812
Other comprehensive income (loss)		(3)		—		11		8
Balance - December 31, 2018	$	1,836	$	—	$	(16)	$	1,820

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Stock Plans (Tables)

12 Months Ended

Dec. 31, 2018

Stock Plans

Schedule of share-based compensation expense

	For the year ended December 31,
	2018		2017		2016
	(in thousands)
Cost of sales	$	1,885	$	2,505	$	1,956
Research and development		3,611		2,957		3,324
Selling, general, and administrative		9,417		12,851		10,433
Restructuring		1,161		1,880		—
Acquisition costs		—		4,203		—
Total	$	16,074	$	24,396	$	15,713

Summary of unrecognized share-based compensation costs

	Unrecognized		Weighted
	Share-Based		Average Period
	Compensation		Expected to be
	Costs		Recognized
	(in thousands)		(in years)
Stock option awards	$	—	—
Restricted stock units		2,466	2.4
Restricted stock awards		19,663	2.6
Performance share units		7,356	2.4
Total unrecognized share-based compensation cost	$	29,485	2.5

Schedule of options, vested and expected to vest

				Weighted
	Number	Weighted		Average	Aggregate
	of	Average		Remaining	Intrinsic
	Shares	Exercise Price		Contractual Life	Value
	(in thousands)			(in years)	(in thousands)
Vested	1,222	$	34.80	3.0	—
Expected to vest	—		—	—	—
Total	1,222		34.80	3.0	—

Summary of stock option activity

		Weighted
	Number of	Average
	Shares	Exercise Price
	(in thousands)
Balance -  December 31, 2015	2,064	$	32.91
Granted	—		—
Exercised	(194)		12.18
Expired or forfeited	(294)		34.44
Balance -  December 31, 2016	1,576		35.18
Granted	—		—
Exercised	(18)		30.03
Expired or forfeited	(164)		37.47
Balance -  December 31, 2017	1,394		34.97
Granted	—		—
Exercised	—		—
Expired or forfeited	(172)		36.21
Balance -  December 31, 2018	1,222		34.80

Summary of information about stock option information

	Options Outstanding						Options Exercisable
				Weighted						Weighted
		Aggregate		Average	Weighted			Aggregate		Average	Weighted
		Intrinsic		Remaining	Average			Intrinsic		Remaining	Average
Range of Exercise Prices	Shares	Value		Contractual Life	Exercise Price		Shares	Value		Contractual Life	Exercise Price
	(in thousands)	(in thousands)		(in years)			(in thousands)	(in thousands)		(in years)
$20.00 - $30.00	25	$	—	3.6	$	28.13	25	$	—	3.6	$	28.13
$30.01 - $40.00	1,058		—	3.1		32.81	1,058		—	3.1		32.81
$40.01 - $50.00	12		—	1.7		45.57	12		—	1.7		45.57
$50.01 - $60.00	127		—	2.4		51.70	127		—	2.4		51.70
	1,222	$	—	3.0		34.80	1,222	$	—	3.0		34.80

Summary of information on options exercised

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Cash received from options exercised	$	—	$	431	$	494
Intrinsic value of options exercised	$	—	$	51	$	1,165

Summary of non-vested restricted and performance shares activity

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
	(in thousands)
Balance -  December 31, 2015	1,398	$	31.97
Granted	1,166		17.59
Vested	(349)		32.73
Forfeited	(266)		27.31
Balance -  December 31, 2016	1,949		23.85
Granted	674		29.22
Performance award adjustments	(25)		20.95
Assumed from Ultratech	338		31.75
Vested	(831)		27.67
Forfeited	(225)		26.29
Balance -  December 31, 2017	1,880		25.41
Granted	1,257		17.37
Performance award adjustments	(5)		32.67
Vested	(523)		26.39
Forfeited	(391)		24.66
Balance -  December 31, 2018	2,218		20.74

Summary of valuation assumptions for performance awards

	Year ended December 31,
	2018
Weighted average fair value	$	15.58
Dividend yield		0	%
Expected volatility factor(1)		49	%
Risk-free interest rate(2)		2.88	%
Expected life (in years)(3)		3.0

(1) Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term.

(2) The risk-free rate for periods within the contractual term is based on the U.S. Treasury yield curve in effect at the time of grant.

(3) The expected life is the number of years the Company estimates that the awards will be outstanding prior to exercise.

Summary of valuation assumptions for employee stock purchase plan

		Year ended December 31,
	2018			2017			2016
Weighted average fair value	$	4.94		$	7.09		$	4.45
Dividend yield		0	%		0	%		0	%
Expected volatility factor(1)		62	%		36	%		43	%
Risk-free interest rate(2)		1.81	%		0.99	%		0.35	%
Expected life (in years)(3)		0.5			0.5			0.5

(1) Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term.

(2) The risk-free rate for periods within the contractual term is based on the U.S. Treasury yield curve in effect at the time of grant.

(3) The expected life is the number of years the Company estimates that the purchase rights will be outstanding prior to exercise.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of income (loss) from continuing operations before income taxes

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Domestic	$	(286,561)	$	(101,573)	$	(123,089)
Foreign		(147,273)		12,583		3,885
Total	$	(433,834)	$	(88,990)	$	(119,204)

Schedule of components of the expense (benefit) for income taxes

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Current:
Federal	$	(1,682)	$	—	$	—
Foreign		2,518		(2,246)		1,937
State and local		38		15		(111)
Total current expense (benefit) for income taxes		874		(2,231)		1,826
Deferred:
Federal		205		(35,912)		1,459
Foreign		(27,932)		1,291		(589)
State and local		107		(742)		127
Total deferred expense (benefit) for income taxes		(27,620)		(35,363)		997
Total expense (benefit) for income taxes	$	(26,746)	$	(37,594)	$	2,823

Schedule of reconciliation of the income tax expense computed using the Federal statutory rate to actual income tax provision

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Income tax expense (benefit) at U.S. statutory rates	$	(91,105)	$	(31,147)	$	(41,722)
State taxes, net of U.S. federal impact		(2,848)		(2,523)		(1,963)
Effect of international operations		11,847		10,158		8,798
Research and development tax credit		(2,230)		620		(801)
Net change in valuation allowance		7,747		1,883		50,544
Change in accrual for unrecognized tax benefits		2,868		(4,772)		(1,700)
Subsidiary liquidation		—		—		(12,435)
Share-based compensation		1,848		99		2,133
Effect of 2017 Tax Act		(1,690)		(11,344)		—
Asset impairment		46,872		—		—
Other		(55)		(568)		(31)
Total expense (benefit) for income taxes	$	(26,746)	$	(37,594)	$	2,823

Schedule of deferred tax assets and liabilities

	December 31,
	2018		2017
	(in thousands)
Deferred tax assets:
Inventory valuation	$	8,943	$	8,007
Net operating losses		67,787		73,458
Credit carry forwards		52,592		34,966
Warranty and installation accruals		1,695		1,690
Share-based compensation		6,981		7,385
Other		2,182		1,832
Total deferred tax assets		140,180		127,338
Valuation allowance		(114,955)		(100,456)
Net deferred tax assets		25,225		26,882
Deferred tax liabilities:
Purchased intangible assets		15,401		45,807
Convertible Senior Notes		11,265		13,534
Depreciation		2,380		1,339
Total deferred tax liabilities		29,046		60,680
Net deferred taxes	$	(3,821)	$	(33,798)

Schedule of reconciliation of beginning and ending amount of uncertain tax positions

	December 31,
	2018		2017		2016
	(in thousands)
Balance at beginning of year	$	8,269	$	7,452	$	9,152
Additions for tax positions related to current year		2,154		511		1,038
Additions for tax positions related to prior years		1,721		3		233
Reductions for tax positions related to prior years		(934)		(4,877)		(2,826)
Reductions due to the lapse of the statute of limitations		(26)		(122)		(39)
Settlements		(47)		(287)		(106)
Additions for business combination		—		5,589		—
Balance at end of year	$	11,137	$	8,269	$	7,452

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Segment Reporting and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting and Geographic Information

Schedule of sales by end-market

	For the year ended December 31,
	2018		2017		2016
	(in thousands)
Sales by end-market
Advanced Packaging, MEMS & RF Filters	$	90,775	$	67,406	$	67,484
LED Lighting, Display & Compound Semiconductor		249,974		248,615		145,701
Front-End Semiconductor		62,582		40,319		8,427
Scientific & Industrial		138,751		119,346		110,090
Total	$	542,082	$	475,686	$	331,702

Schedule of sales by geographic region

	Net Sales to Unaffiliated Customers						Long-lived Tangible Assets
	2018		2017		2016		2018		2017		2016
	(in thousands)
United States	$	125,659	$	93,433	$	85,582	$	78,503	$	81,046	$	60,012
China		194,032		106,674		84,604		81		64		219
EMEA(1)		89,102		72,979		84,181		205		231		93
Rest of World		133,289		202,600		77,335		1,495		3,717		322
Total	$	542,082	$	475,686	$	331,702	$	80,284	$	85,058	$	60,646

(1) EMEA consists of Europe, the Middle East, and Africa

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Selected Quarterly Financial Information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Selected Quarterly Financial Information (unaudited)

Schedule of unaudited quarterly financial data

	Fiscal 2018								Fiscal 2017
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
	(in thousands, except per share amounts)
Net sales	$	158,574	$	157,779	$	126,757	$	98,972	$	94,499	$	112,218	$	129,308	$	139,661
Gross profit		56,680		55,395		46,385		35,259		34,500		35,847		50,529		55,352
Net income (loss)		(15,827)		(237,634)		(8,953)		(144,674)		1,640		(20,817)		(23,740)		(8,479)
Basic income (loss) per common share		(0.34)		(5.02)		(0.19)		(3.11)		0.04		(0.49)		(0.51)		(0.18)
Diluted income (loss) per common share		(0.34)		(5.02)		(0.19)		(3.11)		0.04		(0.49)		(0.51)		(0.18)

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Significant Accounting Policies - Description of Business (Details)	12 Months Ended
	Dec. 31, 2018 segment
Significant Accounting Policies
Number of Operating Segments	1

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Significant Accounting Policies - Basis of Presentation (Details)	12 Months Ended
	Dec. 31, 2018
Significant Accounting Policies
Fiscal period duration (in days)	91 days

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Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2018
Accounting Changes
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true
Adjustments for adoption of guidance | ASU 2014-09, Revenue from Contracts with Customers
Accounting Changes
Billing retention recognized at time of transfer of control (as a percent)	10.00%

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Significant Accounting Policies - Warranty Costs (Details)	12 Months Ended
	Dec. 31, 2018
Significant Accounting Policies
Warranty period	1 year

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Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Significant Accounting Policies
Advertising expense	$ 0.9	$ 0.9	$ 0.8

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Significant Accounting Policies - Accounting for Share-Based Compensation (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Significant Accounting Policies
Number of awards with which entity has elected to treat awards with only service conditions and with graded vesting | item	1
Advertising expense | $	$ 0.9	$ 0.9	$ 0.8

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Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Significant Accounting Policies
Allowance for doubtful accounts receivable	$ 0.3	$ 0.3
Maturity period of irrevocable letters of credit, minimum	0 days
Maturity period of irrevocable letters of credit, maximum	90 days

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Significant Accounting Policies - Cash, Cash Equivalents, and Short-Term Investments (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Significant Accounting Policies
Cash equivalents	$ 69.6	$ 76.7
Cash and cash equivalents maintained outside the United States (as a percent)	32.00%	77.00%

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Significant Accounting Policies - Goodwill and Indefinite-Lived Intangibles (Details)	12 Months Ended
	Dec. 31, 2018
Significant Accounting Policies
Number of trading days used in adjusted market capitalization calculation	10 days

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Significant Accounting Policies - Recently Adopted Accounting Standards - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2016
Accounting Changes
Contract assets	$ 10,397	$ 160
Deferred cost of sales	3,072	15,994
Deferred income taxes	1,869	3,047
Accrued expenses and other current liabilities	46,450	58,068
Customer deposits and deferred revenue	72,736	112,032
Additional paid-in capital	1,061,325	1,051,953
Accumulated deficit	$ (619,983)	(212,870)
ASU 2014-09, Revenue from Contracts with Customers | Previously Reported
Accounting Changes
Deferred cost of sales		16,060
Deferred income taxes		2,953
Accrued expenses and other current liabilities		60,339
Customer deposits and deferred revenue		108,953
Additional paid-in capital		1,053,079
Accumulated deficit		(213,376)
ASU 2014-09, Revenue from Contracts with Customers | Adjustments for adoption of guidance
Accounting Changes
Contract assets		160
Deferred cost of sales		(66)
Deferred income taxes		94
Accrued expenses and other current liabilities		(2,271)
Customer deposits and deferred revenue		3,079
Additional paid-in capital		(1,126)
Accumulated deficit		$ 506	$ 6,900

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Significant Accounting Policies - Recently Adopted Accounting Standards - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Changes
Net sales	$ 98,972	$ 126,757	$ 157,779	$ 158,574	$ 139,661	$ 129,308	$ 112,218	$ 94,499	$ 542,082	$ 475,686	$ 331,702
Cost of sales									348,363	299,458	198,604
Income tax expense (benefit)									(26,746)	(37,594)	2,823
Net income (loss)	$ (144,674)	$ (8,953)	$ (237,634)	$ (15,827)	$ (8,479)	$ (23,740)	$ (20,817)	$ 1,640	$ (407,088)	$ (51,396)	$ (122,027)
Diluted earnings (loss) per share (in dollars per share)	$ (3.11)	$ (0.19)	$ (5.02)	$ (0.34)	$ (0.18)	$ (0.51)	$ (0.49)	$ 0.04	$ (8.63)	$ (1.16)	$ (3.10)
Previously Reported | ASU 2014-09, Revenue from Contracts with Customers
Accounting Changes
Net sales										$ 484,756	$ 332,451
Cost of sales										300,438	199,593
Income tax expense (benefit)										(36,107)	2,766
Net income (loss)										$ (44,793)	$ (122,210)
Diluted earnings (loss) per share (in dollars per share)										$ (1.01)	$ (3.11)
Adjustments for adoption of guidance | ASU 2014-09, Revenue from Contracts with Customers
Accounting Changes
Net sales										$ (9,070)	$ (749)
Cost of sales										(980)	(989)
Income tax expense (benefit)										(1,487)	57
Net income (loss)										$ (6,603)	$ 183
Diluted earnings (loss) per share (in dollars per share)										$ (0.15)	$ 0.01

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Significant Accounting Policies - Recently Adopted Accounting Standards - ASU 2016-09 (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2016	Dec. 31, 2015
Accounting Changes
Accumulated deficit	$ (619,983,000)	$ (212,870,000)
Additional paid-in capital	1,061,325,000	1,051,953,000
Total stockholders' equity	437,775,000	840,093,000	$ 601,704,000		$ 714,615,000
Deferred tax assets before valuation allowance	140,180,000	127,338,000
Deferred tax assets valuation allowance	$ 114,955,000	$ 100,456,000
ASU 2016-09 | Early Adoption of New Accounting Principle
Accounting Changes
Accumulated deficit				$ (1,300,000)
Additional paid-in capital				1,300,000
Total stockholders' equity				0
Deferred tax assets before valuation allowance				2,400,000
Deferred tax assets valuation allowance				$ 2,400,000

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Significant Accounting Policies - Recent Accounting Pronouncements (Details) - ASU 2016-02 $ in Millions	Jan. 01, 2019 USD ($)
Minimum
Accounting Changes
Operating lease liability	$ 12.0
Operating lease asset	12.0
Maximum
Accounting Changes
Operating lease liability	16.0
Operating lease asset	$ 16.0

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Income (Loss) Per Common Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income (Loss) Per Share
Net income (loss)	$ (144,674)	$ (8,953)	$ (237,634)	$ (15,827)	$ (8,479)	$ (23,740)	$ (20,817)	$ 1,640	$ (407,088)	$ (51,396)	$ (122,027)
Net income (loss) per common share:
Basic (in dollars per share)	$ (3.11)	$ (0.19)	$ (5.02)	$ (0.34)	$ (0.18)	$ (0.51)	$ (0.49)	$ 0.04	$ (8.63)	$ (1.16)	$ (3.10)
Diluted (in dollars per share)	$ (3.11)	$ (0.19)	$ (5.02)	$ (0.34)	$ (0.18)	$ (0.51)	$ (0.49)	$ 0.04	$ (8.63)	$ (1.16)	$ (3.10)
Weighted average shares reconciliation
Basic weighted average shares outstanding									47,151	44,174	39,340
Diluted weighted average shares outstanding									47,151	44,174	39,340

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Income (Loss) Per Common Share - Shares Excluded from EPS (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Unvested participating shares
Basic income (loss) per share
Unvested participating shares excluded from basic weighted average shares outstanding since the securityholders are not obligated to fund losses	20	72	312
Common stock equivalents
Diluted income (loss) per share
Common share equivalents excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive	28	239	107
Non-participating shares
Diluted income (loss) per share
Shares excluded from the diluted calculation as their effect would be antidilutive	2,474	1,744	1,896
Convertible Notes
Diluted income (loss) per share
Shares excluded from the diluted calculation as their effect would be antidilutive	8,618	8,618

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Fair Value Measurements (Details) - Measured at fair value on a recurring basis - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Cash equivalents
Total Cash equivalents	$ 69,561	$ 76,739
Short-term investments
Total Short-term investments	48,189	47,780
Certificate of deposits and time deposits
Cash equivalents
Total Cash equivalents	65,571	64,249
U.S. treasuries
Cash equivalents
Total Cash equivalents	3,990	12,490
Short-term investments
Total Short-term investments	37,184	33,895
Corporate debt
Short-term investments
Total Short-term investments	8,516	10,886
Commercial paper
Short-term investments
Total Short-term investments	2,489	2,999
Level 1
Cash equivalents
Total Cash equivalents	69,561	76,739
Short-term investments
Total Short-term investments	37,184	33,895
Level 1 | Certificate of deposits and time deposits
Cash equivalents
Total Cash equivalents	65,571	64,249
Level 1 | U.S. treasuries
Cash equivalents
Total Cash equivalents	3,990	12,490
Short-term investments
Total Short-term investments	37,184	33,895
Level 2
Short-term investments
Total Short-term investments	11,005	13,885
Level 2 | Corporate debt
Short-term investments
Total Short-term investments	8,516	10,886
Level 2 | Commercial paper
Short-term investments
Total Short-term investments	$ 2,489	$ 2,999

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Investments - Available-For-Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Total available-for-sale securities
Amortized Cost	$ 48,205	$ 47,807
Gross Unrealized Losses	(16)	(27)
Estimated Fair Value	48,189	47,780
Available-for-sale securities in a loss position
Estimated Fair Value	45,700	44,781
Gross Unrealized Losses	(16)	(27)
Short-term investments in a continuous loss position
Investments that had been in a continuous loss position for more than 12 months	0	0
U.S. treasuries
Total available-for-sale securities
Amortized Cost	37,191	33,914
Gross Unrealized Losses	(7)	(19)
Estimated Fair Value	37,184	33,895
Available-for-sale securities in a loss position
Estimated Fair Value	37,184	33,895
Gross Unrealized Losses	(7)	(19)
Corporate debt
Total available-for-sale securities
Amortized Cost	8,525	10,894
Gross Unrealized Losses	(9)	(8)
Estimated Fair Value	8,516	10,886
Available-for-sale securities in a loss position
Estimated Fair Value	8,516	10,886
Gross Unrealized Losses	(9)	(8)
Commercial paper
Total available-for-sale securities
Amortized Cost	2,489	2,999
Estimated Fair Value	$ 2,489	$ 2,999

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Investments - Other Investment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Investment
Impairment charges for investments	$ 0.0	$ 0.0	$ 0.0
Kateeva
Other Investment
Carrying amount	$ 21.0	$ 21.0
Kateeva | Maximum
Other Investment
Percentage ownership of cost method investee	20.00%
Separate non-marketable investment
Other Investment
Amount of investment made	$ 3.5
Separate non-marketable investment | Maximum
Other Investment
Percentage ownership of cost method investee	20.00%

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Business Combinations - Ultratech (Details) - Ultratech $ / shares in Units, $ in Thousands	May 26, 2017 USD ($) $ / shares shares
Business Combinations
Cash received by acquiree (in dollars per share) | $ / shares	$ 21.75
Number of shares received by acquiree | shares	0.2675
Acquisition date fair value, net of cash acquired | $	$ 633,361

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Business Combinations - Consideration (Details) - Ultratech - USD ($) $ in Thousands, shares in Millions	May 26, 2017	Dec. 31, 2017
Fair value of the consideration transferred
Cash consideration, net of cash acquired	$ 404,490
Cash acquired	229,400
Equity consideration (7.2 million shares issued)	$ 228,643
Shares issued (in shares)	7.2
Replacement equity awards attributable to pre-acquisition service	$ 228
Acquisition date fair value	$ 633,361
Accrued expenses and other current liabilities
Fair value of the consideration transferred
Cash merger consideration		$ 2,700

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Business Combinations- Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	May 26, 2017	Dec. 31, 2016
Summary of estimated fair values of the assets acquired and liabilities assumed
Goodwill	$ 184,302	$ 307,131		$ 114,908
Ultratech
Summary of estimated fair values of the assets acquired and liabilities assumed
Short-term investments			$ 47,161
Account receivable			45,465
Inventories			59,100
Deferred cost of sales			242
Prepaid expense and other current assets			7,217
Property, plant, and equipment			18,152
Intangible assets			346,940
Other assets			6,442
Total identifiable assets acquired			530,719
Accounts payable			24,291
Accrued expenses and other current liabilities			16,356
Customer deposits and deferred revenue			4,834
Deferred income taxes			32,478
Other liabilities			11,622
Total liabilities assumed			89,581
Net identifiable assets acquired			441,138
Goodwill			192,223
Net assets acquired			633,361
Gross contractual value of accounts receivable			$ 46,000

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Business Combinations - Intangible Assets (Details) - Ultratech $ in Thousands	May 26, 2017 USD ($)
Intangible assets acquired and the estimated weighted-average useful life
Intangible assets acquired, amount	$ 346,940
In-process R&D
Intangible assets acquired and the estimated weighted-average useful life
Intangible assets acquired, amount	43,340
Technology
Intangible assets acquired and the estimated weighted-average useful life
Intangible assets acquired, amount	$ 158,390
Useful life	9 years
Customer relationships
Intangible assets acquired and the estimated weighted-average useful life
Intangible assets acquired, amount	$ 116,710
Useful life	12 years
Backlog
Intangible assets acquired and the estimated weighted-average useful life
Intangible assets acquired, amount	$ 3,080
Useful life	6 months
Trademarks and tradenames
Intangible assets acquired and the estimated weighted-average useful life
Intangible assets acquired, amount	$ 25,420
Useful life	7 years

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Business Combinations - IPRD and other (Details) - USD ($) $ in Thousands		12 Months Ended
	May 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Combinations
Acquisition related costs		$ 2,959	$ 17,786
Non-cash charges related to share based compensation		16,074	24,396	$ 15,741
Amortization of intangible assets		32,351	35,475	19,219
Restructuring Charges.		8,556	11,851	$ 5,640
Ultratech
Business Combinations
Intangible assets acquired, amount	$ 346,940
Portion of IPR&D related to lithography technologies (as a percent)	50.00%
Portion of IPR&D related to laser annealing technologies (as a percent)	33.00%
Acquisition related costs		$ 3,000	17,800
Non-cash charges related to share based compensation			4,200
Net sales			65,280
Loss before income taxes			(62,284)
Inventory fair value step-up related to purchase accounting			9,600
Amortization of intangible assets			23,900
Restructuring Charges.			$ 3,300
In-process R&D | Ultratech
Business Combinations
Intangible assets acquired, amount	$ 43,340

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Business Combinations - ProForma (Details) - Ultratech - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pro forma consolidated statement of operations
Net sales	$ 546,428	$ 525,752
Loss before income taxes	$ (90)	$ (217,783)
Diluted earnings per share (in dollars per share)	$ (1.38)	$ (4.67)

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Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Gross carrying amount, beginning balance	$ 430,331	$ 238,108
Accumulated impairment, beginning balance	123,200	123,200
Net amount, beginning balance	307,131	114,908
Acquisition		192,223
Impairment	122,829
Gross carrying amount, ending balance	430,331	430,331
Accumulated impairment, ending balance	246,029	123,200
Net amount, ending balance	$ 184,302	$ 307,131
Number of trading days used in adjusted market capitalization calculation	10 days

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Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2016	Dec. 31, 2017
Intangible assets
Weighted Average Remaining Amortization Period		7 years 3 months 18 days
Net Amount, Definite-lived intangible assets		$ 81,969
Total Gross Intangible Assets		550,119		$ 550,119
Accumulated Amortization and Impairment		464,970		180,276
Total Net Intangible Assets		85,149		369,843
Impairment charges, Definite-lived intangible assets	$ 216,400
In-process R&D
Intangible assets
Gross Carrying Amount, Indefinite-lived intangible assets		13,710		43,340
Accumulated Amortization and Impairment, Indefinite-lived intangible assets		10,530
Net Amount, Indefinite-lived intangible assets		$ 3,180		43,340
Impairment charges, Indefinite-lived intangible assets	$ 35,900
Technology
Intangible assets
Weighted Average Remaining Amortization Period		6 years 4 months 24 days
Gross Carrying Amount, Definite-lived intangible assets		$ 337,218		307,588
Accumulated Amortization and Impairment, Definite-lived intangible assets		290,808		133,121
Net Amount, Definite-lived intangible assets		$ 46,410		174,467
Impairment charges, Definite-lived intangible assets			$ 54,300
Customer relationships
Intangible assets
Weighted Average Remaining Amortization Period		10 years 2 months 12 days
Gross Carrying Amount, Definite-lived intangible assets		$ 164,595		164,595
Accumulated Amortization and Impairment, Definite-lived intangible assets		136,126		39,336
Net Amount, Definite-lived intangible assets		$ 28,469		125,259
Trademarks and tradenames
Intangible assets
Weighted Average Remaining Amortization Period		5 years 4 months 24 days
Gross Carrying Amount, Definite-lived intangible assets		$ 30,910		30,910
Accumulated Amortization and Impairment, Definite-lived intangible assets		23,899		4,321
Net Amount, Definite-lived intangible assets		$ 7,011		26,589
Other Intangible Assets
Intangible assets
Weighted Average Remaining Amortization Period		1 year 3 months 18 days
Gross Carrying Amount, Definite-lived intangible assets		$ 3,686		3,686
Accumulated Amortization and Impairment, Definite-lived intangible assets		3,607		3,498
Net Amount, Definite-lived intangible assets		$ 79		$ 188

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Goodwill and Intangible Assets - Amortization (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Estimated aggregate amortization expense
2019	$ 16,820
2020	15,894
2021	12,772
2022	10,438
2023	8,675
Thereafter	17,370
Net Amount, Definite-lived intangible assets	$ 81,969

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Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventories
Materials	$ 90,816	$ 59,919
Work-in-process	42,354	37,222
Finished goods	23,141	23,125
Total	$ 156,311	$ 120,266

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Property, Plant, and Equipment and Assets Held for Sale - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, plant, and equipment
Gross property, plant and equipment	$ 204,211	$ 197,020
Less: accumulated depreciation and amortization	123,927	111,962
Net property, plant, and equipment	80,284	85,058	$ 60,646
Depreciation expense	17,600	14,600	13,400
Property, plant and equipment, impairment charge			$ 3,300
Land
Property, plant, and equipment
Gross property, plant and equipment	5,669	5,669
Building and improvements
Property, plant, and equipment
Gross property, plant and equipment	$ 61,124	54,449
Building and improvements | Minimum
Property, plant, and equipment
Average Useful Life	10 years
Building and improvements | Maximum
Property, plant, and equipment
Average Useful Life	40 years
Machinery and equipment
Property, plant, and equipment
Gross property, plant and equipment	$ 128,385	126,829
Machinery and equipment | Minimum
Property, plant, and equipment
Average Useful Life	3 years
Machinery and equipment | Maximum
Property, plant, and equipment
Average Useful Life	10 years
Leaseholds improvements
Property, plant, and equipment
Gross property, plant and equipment	$ 9,033	$ 10,073
Leaseholds improvements | Minimum
Property, plant, and equipment
Average Useful Life	3 years
Leaseholds improvements | Maximum
Property, plant, and equipment
Average Useful Life	7 years

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Property, Plant, and Equipment and Assets Held For Sale - Assets Held For Sale (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) building
Assets held for sale
Asset impairment charges	$ 375,172	$ 1,139	$ 69,520
Assets held for sale	$ 0	0
South Korea
Assets held for sale
Number of facilities listed for sale | building			2
Asset impairment charges			$ 4,500
St. Paul, Minnesota
Assets held for sale
Asset impairment charges		$ 700	1,200
Lab equipment
Assets held for sale
Non-cash impairment charges			$ 6,200

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Accrued Expenses and Other Liabilities - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued expenses and other current liabilities
Payroll and related benefits	$ 20,486	$ 32,996
Warranty	7,852	6,532
Interest	4,321	4,430
Professional fees	2,897	3,942
Merger consideration payable		2,662
Sales, use, and other taxes	2,670	2,144
Restructuring liability	2,213	1,520
Other	6,011	3,842
Total	$ 46,450	$ 58,068

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Accrued Expenses and Other Liabilities - Customer deposits and deferred revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Customer deposits and deferred revenue
Customer deposits and deferred revenue	$ 28,300	$ 41,500
Changes in deferred revenue
Beginning balance	70,536
Deferral of revenue	10,251
Recognition of previously deferred revenue	(36,372)
Ending balance	$ 44,415

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Accrued Expenses and Other Liabilities - Performance Obligation Amount (Details) $ in Millions	Dec. 31, 2018 USD ($)
Accrued Expenses and Other Liabilities
Remaining performance obligations	$ 74.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Performance obligations
Percentage of remaining performance obligation expected to be recognized	67.00%

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Accrued Expenses and Other Liabilities - Performance Obligation Timing (Details)	12 Months Ended
	Dec. 31, 2018
Accrued Expenses and Other Liabilities
Revenue, Practical Expedient, Remaining Performance Obligation	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations
Remaining performance obligations, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Performance obligations
Remaining performance obligations, expected timing of satisfaction	3 years

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Accrued Expenses and Other Liabilities - Other liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other liabilities
Income taxes payable	$ 1,256	$ 3,846
Other Assets
Other liabilities
Deferred compensation plan assets	3,200	3,400
Other Liabilities
Other liabilities
Deferred compensation plan liabilities	3,500	4,700
Asset retirement obligations	3,200	3,300
Medical and dental benefits	2,200	$ 2,200
Income taxes payable	$ 1,000

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Restructuring Charges - Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2018 USD ($) employee	Jun. 30, 2018 employee	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Restructuring Accruals
Restructuring charges			$ 8,556	$ 11,851	$ 5,640
Non-cash charges related to share based compensation			16,074	24,396	$ 15,741
Reduce excess capacity
Restructuring Accruals
Number of employees terminated | employee		40
Reduce costs
Restructuring Accruals
Number of employees terminated | employee	35
Restructuring
Restructuring Accruals
Non-cash charges related to share based compensation			1,200	$ 1,900
Personnel severance and related costs | Reduce excess capacity
Restructuring Accruals
Restructuring charges			$ 2,800
Personnel severance and related costs | Reduce costs
Restructuring Accruals
Restructuring charges	$ 1,200

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Restructuring Charges - Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring accruals roll forward
Balance at the beginning of the period	$ 1,520	$ 1,796	$ 824
Provision	7,395	9,971	5,642
Changes in estimate			(2)
Payments	(6,702)	(10,247)	(4,668)
Balance at the end of the period	2,213	1,520	1,796
Personnel severance and related costs
Restructuring accruals roll forward
Balance at the beginning of the period	1,520	1,796	824
Provision	4,681	4,714	4,544
Changes in estimate			(2)
Payments	(4,058)	(4,990)	(3,570)
Balance at the end of the period	2,143	1,520	1,796
Facility Closing Costs
Restructuring accruals roll forward
Provision	2,714	5,257	1,098
Payments	(2,644)	$ (5,257)	$ (1,098)
Balance at the end of the period	$ 70

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Commitments and Contingencies - Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Warranty
Warranty period of products purchased	1 year
Balance, beginning of the year	$ 6,532	$ 4,217	$ 8,159
Warranties issued	6,737	5,817	3,916
Addition from Ultratech acquisition		1,889
Consumption of reserves	(6,573)	(6,330)	(6,433)
Changes in estimate	1,156	939	(1,425)
Balance, end of the year	$ 7,852	$ 6,532	$ 4,217

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Commitments and Contingencies - Minimum Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Minimum lease payments under non-cancelable leases
Lease expense	$ 6,300	$ 5,300	$ 2,500
Property and equipment under operating leases
Minimum lease payments under non-cancelable leases
2019	5,143
2020	5,056
2021	2,432
2022	1,812
2023	1,066
Thereafter	548
Total	$ 16,057

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Commitments and Contingencies - Legal Proceedings (Detail)	Aug. 08, 2018 case
Commitments and Contingencies
Number of purported class action complaints filed	2

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Commitments and Contingencies - Concentration of Credit Risk (Details) - customer	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Ten largest customers
Concentration of Credit Risk
Number of customers	10
Accounts Receivable | Credit Concentration Risk | Ten largest customers
Concentration of Credit Risk
Concentration Risk (as a percent)	61.00%	67.00%
Accounts Receivable | Credit Concentration Risk | Customer A
Concentration of Credit Risk
Concentration Risk (as a percent)		24.00%
Accounts Receivable | Credit Concentration Risk | Customer B
Concentration of Credit Risk
Concentration Risk (as a percent)	22.00%
Net Sales | Credit Concentration Risk | Customer A
Concentration of Credit Risk
Concentration Risk (as a percent)		21.00%	14.00%
Net Sales | Credit Concentration Risk | Customer C
Concentration of Credit Risk
Concentration Risk (as a percent)	12.00%

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Commitments and Contingencies - Receivables (Details)	12 Months Ended
	Dec. 31, 2018
Minimum
Concentration of Credit Risk
Credit period for accounts receivable	30 days
Maximum
Concentration of Credit Risk
Credit period for accounts receivable	90 days

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Commitments and Contingencies - Receivable Purchase Agreement (Details) - USD ($) $ in Millions	1 Months Ended
	Dec. 31, 2017	Dec. 31, 2018
Commitments and Contingencies
Trade receivables from customers without recourse to be sold, maximum amount	$ 23.0
Receivable Purchase Agreement, term	1 year
Trade receivables, sold	$ 15.0	$ 0.0
Trade receivable, available for additional sales	$ 8.0

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Commitments and Contingencies - Suppliers (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Purchase Commitments
Deposits with suppliers	$ 12.8	$ 7.6

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Commitments and Contingencies - Purchase Commitments and Bank Guarantees (Details) $ in Millions	Dec. 31, 2018 USD ($)
Purchase commitments
Purchase commitments due within one year	$ 91.5
Bank guarantees
Bank guarantees and letters of credit outstanding	6.8
Unused bank guarantees and letters of credit	$ 58.9

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Debt - Convertible Senior Notes (Details)		12 Months Ended
	Jan. 10, 2017 USD ($) D $ / shares	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)
Debt
Proceeds from long-term debt borrowings		$ 335,752,000
Convertible Notes
Debt
Principal amount	$ 345,000,000	345,000,000	$ 345,000,000
Interest rate (as a percent)	2.70%
Proceeds from long-term debt borrowings	$ 335,800,000
Conversion rate	0.249800
Conversion price (in dollars per share) | $ / shares	$ 40.03
Multiples of principal holders may convert	$ 1,000
Consecutive trading days | D	30
Stock price trigger (as a percent)	130.00%
Trading days	5
Number of consecutive business days	5 days
Maximum percentage of common stock conversion	98.00%
Measurement input	7.00
Long-term Debt, Measurement Input [Extensible List]	us-gaap:MeasurementInputDiscountRateMember
Debt discount	$ 72,500,000	$ 63,022,000	$ 52,336,000
Transaction costs	9,200,000
Transaction costs allocated to the equity component	$ 1,900,000
Convertible Notes | Minimum
Debt
Trading days | D	20

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Debt - Carrying Value - Convertible Senior Notes (Details) - Convertible Notes - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Jan. 10, 2017
Debt
Principal amount	$ 345,000	$ 345,000	$ 345,000
Unamortized debt discount	(52,336)	(63,022)	$ (72,500)
Unamortized transaction costs	(5,272)	(6,348)
Net carrying value	$ 287,392	$ 275,630

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Debt - Interest Expense - Convertible Senior Notes (Details) - Convertible Notes - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Interest Expense
Coupon interest expense	$ 9,315	$ 8,901
Non-Cash Interest Expense
Amortization of debt discount	10,686	9,490
Amortization of transaction costs	1,076	956
Total Interest Expense	21,077	$ 19,347
Estimated fair value	$ 255,300
Convertible Debt, Fair Value by Fair Value Hierarchy Level [Extensible List]	Fair Value Inputs Level2 [Member]

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Derivative Financial Instruments (Details) - Not designated as hedges - Foreign currency exchange forwards - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Financial Instruments
Notional Amounts		$ 622
Gains (losses)	$ 327	(6)	$ 219
Weighted average notional amount	$ 2,869	$ 314	$ 7,175

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Stockholders' Equity - Changes in AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in the balances of each component of AOCI
Balance at the beginning of the period	$ 840,093	$ 601,704	$ 714,615
Total other comprehensive income (loss), net of tax	8	35	429
Balance at the end of the period	437,775	840,093	601,704
Accumulated Other Comprehensive Income
Changes in the balances of each component of AOCI
Balance at the beginning of the period	1,812	1,777	1,348
Other comprehensive income (loss) before reclassifications			(25)
Amounts reclassified from AOCI			454
Total other comprehensive income (loss), net of tax	8	35	429
Balance at the end of the period	1,820	1,812	1,777
Foreign Currency Translation
Changes in the balances of each component of AOCI
Balance at the beginning of the period	1,839	1,797	2,246
Other comprehensive income (loss) before reclassifications			(19)
Amounts reclassified from AOCI			(430)
Total other comprehensive income (loss), net of tax	(3)	42	(449)
Balance at the end of the period	1,836	1,839	1,797
Minimum pension liability
Changes in the balances of each component of AOCI
Balance at the beginning of the period			(866)
Amounts reclassified from AOCI			866
Total other comprehensive income (loss), net of tax			866
Unrealized Gains (Losses) on Available for Sale Securities
Changes in the balances of each component of AOCI
Balance at the beginning of the period	(27)	(20)	(32)
Other comprehensive income (loss) before reclassifications			(6)
Amounts reclassified from AOCI			18
Total other comprehensive income (loss), net of tax	11	(7)	12
Balance at the end of the period	$ (16)	$ (27)	$ (20)

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Stockholders' Equity - Reclassification out of AOCI (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) subsidiary
Reclassification out of AOCI
Other income (expense), net	$ (368)	$ 392	$ (223)
Income tax expense (benefit)	$ (26,746)	$ (37,594)	2,823
Minimum pension liability | Reclassification out of AOCI
Reclassification out of AOCI
Other income (expense), net			(900)
Income tax expense (benefit)			(400)
Foreign Currency Translation | Reclassification out of AOCI
Reclassification out of AOCI
Other income (expense), net			$ 400
South Korea
Reclassification out of AOCI
Number of subsidiaries liquidated | subsidiary			1

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Stockholders' Equity - Preferred Stock (Details) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0

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Stockholders' Equity - Treasury Stock (Details) - USD ($) $ in Thousands	12 Months Ended			13 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 11, 2017
Treasury Stock
Authorized amount of common stock repurchase (in dollars)					$ 100,000
Purchase of common stock	$ 11,309	$ 3,018	$ 13,035	$ 14,300

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Stock Plans - 2010 Plan (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based compensation
Number of options outstanding (in shares)	1,222,000		1,394,000	1,576,000	2,064,000
Inducement Plan
Share-based compensation
Common stock available for grant (in shares)		0
2010 Stock Incentive Plan
Share-based compensation
Number of shares authorized	10,600,000
Stock options | Inducement Plan
Share-based compensation
Awards granted (in shares)		124,500
Vesting period		3 years
Expiration term		10 years
Number of options outstanding (in shares)	2,000
Stock options | 2010 Stock Incentive Plan
Share-based compensation
Vesting period	3 years
Number of options outstanding (in shares)	1,200,000
Stock options | 2010 Stock Incentive Plan | Minimum
Share-based compensation
Expiration term	7 years
Stock options | 2010 Stock Incentive Plan | Maximum
Share-based compensation
Expiration term	10 years
Restricted stock awards and restricted stock units | 2010 Stock Incentive Plan | Minimum
Share-based compensation
Vesting period	1 year
Restricted stock awards and restricted stock units | 2010 Stock Incentive Plan | Maximum
Share-based compensation
Vesting period	5 years
Restricted stock units | Inducement Plan
Share-based compensation
Awards granted (in shares)		87,000
Number of awards outstanding (in shares)	0
Restricted stock units | Inducement Plan | Minimum
Share-based compensation
Vesting period		2 years
Restricted stock units | Inducement Plan | Maximum
Share-based compensation
Vesting period		4 years
RSUs and PSUs | 2010 Stock Incentive Plan
Share-based compensation
Number of awards outstanding (in shares)	900,000

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Stock Plans - ESPP (Details) - ESPP	12 Months Ended
	Dec. 31, 2016 shares
Share-based compensation
Number of shares authorized	750,000
Share price (as a percent)	85.00%
Offer period	6 months

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Stock Plans - Ultratech Plan (Details) - Ultratech Plan - shares		12 Months Ended
	May 17, 2017	Dec. 31, 2017	Dec. 31, 2018
Share-based compensation
Shares that may be granted in future under Plan	0
Restricted stock units
Share-based compensation
Awards converted (in shares)		338,144
Vesting period		50 months
Number of awards outstanding (in shares)			30,200

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Stock Plans - Shares Reserved for Future Issuance (Details) shares in Millions	Dec. 31, 2018 shares
2010 Stock Incentive Plan
Shares reserved for future issuance
Total shares reserved	4.5
ESPP
Shares reserved for future issuance
Total shares reserved	0.2

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Stock Plans - Recognized Share-based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Recognized share-based compensation
Total	$ 16,074	$ 24,396	$ 15,713
Cost of sales
Recognized share-based compensation
Total	1,885	2,505	1,956
Research and development
Recognized share-based compensation
Total	3,611	2,957	3,324
Selling, general and administrative
Recognized share-based compensation
Total	9,417	12,851	$ 10,433
Restructuring
Recognized share-based compensation
Total	$ 1,161	1,880
Acquisition costs
Recognized share-based compensation
Total		$ 4,203

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Stock Plans - Unrecognized Share-based Compensation Costs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Unrecognized share-based compensation costs
Unrecognized Share-Based Compensation Costs	$ 29,485
Weighted Average Period Expected to be Recognized	2 years 6 months
Restricted stock units
Unrecognized share-based compensation costs
Unrecognized Share-Based Compensation Costs	$ 2,466
Weighted Average Period Expected to be Recognized	2 years 4 months 24 days
Restricted stock awards
Unrecognized share-based compensation costs
Unrecognized Share-Based Compensation Costs	$ 19,663
Weighted Average Period Expected to be Recognized	2 years 7 months 6 days
Performance share units
Unrecognized share-based compensation costs
Unrecognized Share-Based Compensation Costs	$ 7,356
Weighted Average Period Expected to be Recognized	2 years 4 months 24 days

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Stock Plans - Stock Option Awards (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Vested
Number of Shares | shares	1,222
Weighted Average Exercise Price	$ 34.80
Weighted Average Remaining Contractual Life	3 years
Total
Number of Shares | shares	1,222
Weighted Average Exercise Price	$ 34.80
Weighted Average Remaining Contractual Life	3 years
Closing price	$ 7.41

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Stock Plans - Stock Option Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of Shares
Outstanding at the beginning of the period (in shares)	1,394	1,576	2,064
Exercised (in shares)		(18)	(194)
Expired or forfeited (in shares)	(172)	(164)	(294)
Outstanding at the end of the period (in shares)	1,222	1,394	1,576
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 34.97	$ 35.18	$ 32.91
Exercised (in dollars per share)		30.03	12.18
Expired or forfeited (in dollars per share)	36.21	37.47	34.44
Outstanding at the end of the period (in dollars per share)	$ 34.80	$ 34.97	$ 35.18

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Stock Plans - Option Exercise Ranges (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Options Outstanding
Options Outstanding, Shares | shares	1,222
Weighted Average Remaining Contractual Life	3 years
Weighted-Average Exercise Price (in dollars per share)	$ 34.80
Options Exercisable
Options Exercisable, Shares | shares	1,222
Weighted Average Remaining Contractual life	3 years
Weighted Average Exercise Price (in dollars per share)	$ 34.80
$20.00 - $30.00
Stock plans
Exercise price, low end of range (in dollars per share)	20.00
Exercise price, high end of range (in dollars per share)	$ 30.00
Options Outstanding
Options Outstanding, Shares | shares	25
Weighted Average Remaining Contractual Life	3 years 7 months 6 days
Weighted-Average Exercise Price (in dollars per share)	$ 28.13
Options Exercisable
Options Exercisable, Shares | shares	25
Weighted Average Remaining Contractual life	3 years 7 months 6 days
Weighted Average Exercise Price (in dollars per share)	$ 28.13
$30.01 - $40.00
Stock plans
Exercise price, low end of range (in dollars per share)	30.01
Exercise price, high end of range (in dollars per share)	$ 40.00
Options Outstanding
Options Outstanding, Shares | shares	1,058
Weighted Average Remaining Contractual Life	3 years 1 month 6 days
Weighted-Average Exercise Price (in dollars per share)	$ 32.81
Options Exercisable
Options Exercisable, Shares | shares	1,058
Weighted Average Remaining Contractual life	3 years 1 month 6 days
Weighted Average Exercise Price (in dollars per share)	$ 32.81
$40.01 - $50.00
Stock plans
Exercise price, low end of range (in dollars per share)	40.01
Exercise price, high end of range (in dollars per share)	$ 50.00
Options Outstanding
Options Outstanding, Shares | shares	12
Weighted Average Remaining Contractual Life	1 year 8 months 12 days
Weighted-Average Exercise Price (in dollars per share)	$ 45.57
Options Exercisable
Options Exercisable, Shares | shares	12
Weighted Average Remaining Contractual life	1 year 8 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 45.57
$50.01 - $60.00
Stock plans
Exercise price, low end of range (in dollars per share)	50.01
Exercise price, high end of range (in dollars per share)	$ 60.00
Options Outstanding
Options Outstanding, Shares | shares	127
Weighted Average Remaining Contractual Life	2 years 4 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 51.70
Options Exercisable
Options Exercisable, Shares | shares	127
Weighted Average Remaining Contractual life	2 years 4 months 24 days
Weighted Average Exercise Price (in dollars per share)	$ 51.70

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Stock Plans - Options Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock Plans
Cash received from options exercised	$ 431	$ 494
Intrinsic value of options exercised	$ 51	$ 1,165

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Stock Plans - RSAs, RSUs, PSAs and PSUs (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
RSAs, RSUs, PSAs and PSUs
Number of Shares
Outstanding at the beginning of the period (in shares)	1,880	1,949	1,398
Granted (in shares)	1,257	674	1,166
Performance award adjustments (in shares)	(5)	(25)
Assumed from Ultratech (in shares)		338
Vested (in shares)	(523)	(831)	(349)
Forfeited (in shares)	(391)	(225)	(266)
Outstanding at the end of the period (in shares)	2,218	1,880	1,949
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 25.41	$ 23.85	$ 31.97
Granted (in dollars per share)	17.37	29.22	17.59
Performance award adjustments (in dollars per share)	32.67	20.95
Assumed from Ultratech (in dollars per share)		31.75
Vested (in dollars per share)	26.39	27.67	32.73
Forfeited (in dollars per share)	24.66	26.29	27.31
Outstanding at the end of the period (in dollars per share)	$ 20.74	$ 25.41	$ 23.85
Total fair value of shares vested	$ 9.1	$ 22.3	$ 7.5
PSAs and PSUs | Minimum
Weighted Average Grant Date Fair Value
Vesting period	1 year
PSAs and PSUs | Maximum
Weighted Average Grant Date Fair Value
Vesting period	5 years

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Stock Plans - RSAs, RSUs, PSAs and PSUs FV Assumptions (Details) - RSAs, RSUs, PSAs and PSUs	12 Months Ended
	Dec. 31, 2018 $ / shares
Assumptions
Weighted average fair value (in dollars per share)	$ 15.58
Dividend yield (as a percent)	0.00%
Expected volatility factor (as a percent)	49.00%
Risk-free interest rate (as a percent)	2.88%
Expected life (in years)	3 years

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Stock Plans - ESPP FV Assumptions (Details) - ESPP - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation
Cash proceeds	$ 3.1	$ 2.6	$ 1.2
Number of shares issued	332,096	163,000	83,000
Assumptions
Weighted average fair value (in dollars per share)	$ 4.94	$ 7.09	$ 4.45
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Expected volatility factor (as a percent)	62.00%	36.00%	43.00%
Risk-free interest rate (as a percent)	1.81%	0.99%	0.35%
Expected life (in years)	6 months	6 months	6 months

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Retirement Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined contribution plan disclosures
Employer's matching contribution for every dollar the employees contribute (as a percent)	50.00%
Employer's matching contribution, vesting period (in years)	5 years
Aggregate employer's contribution to pension plans	$ 3.0	$ 2.7	$ 2.6
Maximum
Defined contribution plan disclosures
Employer's contribution as a percentage of employee's eligible compensation	3.00%
Employer's contribution as a percentage of the maximum an employee is permitted to contribute under IRS limits	3.00%

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Retirement Plans - Defined Benefit Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined benefit plan disclosures
Other income (expense), net	$ (368)	$ 392	$ (223)
Income tax expense (benefit)	$ (26,746)	$ (37,594)	2,823
Minimum pension liability | Reclassification out of AOCI
Defined benefit plan disclosures
Other income (expense), net			(900)
Income tax expense (benefit)			$ (400)

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Income Taxes - Income Attributable to Domestic and Foreign Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income (loss) from continuing operations before income taxes
Domestic	$ (286,561)	$ (101,573)	$ (123,089)
Foreign	(147,273)	12,583	3,885
Income (loss) before income taxes	$ (433,834)	$ (88,990)	$ (119,204)

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Income Taxes - Components of Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal	$ (1,682)
Foreign	2,518	$ (2,246)	$ 1,937
State and local	38	15	(111)
Total current expense (benefit) for income taxes	874	(2,231)	1,826
Deferred:
Federal	205	(35,912)	1,459
Foreign	(27,932)	1,291	(589)
State and local	107	(742)	127
Total deferred expense (benefit) for income taxes	(27,620)	(35,363)	997
Total expense (benefit) for income taxes	$ (26,746)	$ (37,594)	$ 2,823

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Income Taxes - Reconciliation to Statutory Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Income tax expense (benefit) at U.S. statutory rates	$ (91,105)	$ (31,147)	$ (41,722)
State taxes, net of U.S. federal impact	(2,848)	(2,523)	(1,963)
Effect of international operations	11,847	10,158	8,798
Research and development tax credit	(2,230)	620	(801)
Net change in valuation allowance	7,747	1,883	50,544
Change in accrual for unrecognized tax benefits	2,868	(4,772)	(1,700)
Subsidiary liquidation			(12,435)
Share-based compensation	1,848	99	2,133
Effect of 2017 Tax Act	1,690	11,344
Asset impairment	46,872
Other	(55)	(568)	(31)
Total expense (benefit) for income taxes	$ (26,746)	$ (37,594)	$ 2,823

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Income Taxes - Additional disclosure and 2017 Tax Act (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Income Taxes
Additional income tax benefit from effect of Tax Cuts and Jobs Act of 2017	$ 1.7
2017 Tax Act, Amount of increase in gross deferred tax assets	6.8
2017 Tax Act, Increase in deferred tax assets valuation allowance	$ 6.8

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Income Taxes - Reduction of U.S. Corporate Tax Rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
U.S. federal statutory rate (as a percent)	21.00%	35.00%
Income tax benefit		$ (4.8)
Amount of reduction in net deferred tax assets		25.6
Reduction in valuation allowance		$ 30.4

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Income Taxes - One-Time Transition Tax (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Income Taxes
Accumulated undistributed earnings by foreign subsidiaries	$ 180.1

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Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions		12 Months Ended
	Jan. 01, 2018	Dec. 31, 2017
Income Taxes
Maximum NOL deduction in any year as percentage of taxable income	80.00%
Income tax benefit related to valuation allowance		$ 6.5

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Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Inventory valuation	$ 8,943	$ 8,007
Net operating losses	67,787	73,458
Credit carry forwards	52,592	34,966
Warranty and installation accruals	1,695	1,690
Share-based compensation	6,981	7,385
Other	2,182	1,832
Total deferred tax assets	140,180	127,338
Valuation allowance	(114,955)	(100,456)
Net deferred tax assets	25,225	26,882
Deferred tax liabilities:
Purchased intangible assets	15,401	45,807
Convertible Senior Notes	11,265	13,534
Depreciation	2,380	1,339
Total deferred tax liabilities	29,046	60,680
Net deferred taxes	(3,821)	$ (33,798)
Undistributed earnings of foreign subsidiaries
Undistributed earnings of foreign subsidiaries	$ 600

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Income Taxes - Operating Loss Carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating loss carryforwards disclosures
Net deferred tax asset	$ 67,787	$ 73,458
Federal
Operating loss carryforwards disclosures
Net operating loss carryforwards	281,400
Net operating loss carryforwards, Indefinite carryforward period	16,000
Federal | Ultratech
Operating loss carryforwards disclosures
Net operating loss carryforwards	119,000
State and local
Operating loss carryforwards disclosures
Net operating loss carryforwards	147,600
Net deferred tax asset	$ 9,000

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Income Taxes - Tax Credit Carryforwards (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Valuation allowance
Increase (decrease) in valuation allowance	$ 14.5
2017 Tax Act, Increase in deferred tax assets valuation allowance	6.8
Federal | Capital loss carryforward
Tax credit carryforward
Tax credit carry forwards	3.5
Federal | Research and development tax credit carryforward
Tax credit carryforward
Tax credit carry forwards	28.3
Federal | Research and development tax credit carryforward | Ultratech
Tax credit carryforward
Tax credit carry forwards	11.4
State and local
Tax credit carryforward
Tax credit carry forwards	27.4
Foreign tax
Tax credit carryforward
Tax credit carry forwards	$ 9.4

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Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in unrecognized tax benefits
Balance at beginning of year	$ 8,269	$ 7,452	$ 9,152
Additions for tax positions related to current year	2,154	511	1,038
Additions for tax positions relating to prior years	1,721	3	233
Reductions for tax positions relating to prior years	(934)	(4,877)	(2,826)
Reductions due to the lapse of the applicable statute of limitations	(26)	(122)	(39)
Settlements	(47)	(287)	(106)
Additions for business combination		5,589
Balance at end of year	11,137	8,269	$ 7,452
Unrecognized tax benefits that would impact effective tax rate if recognized	1,500
Accrued interest and penalties related to unrecognized tax benefits	$ 300	$ 300

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Segment Reporting and Geographic Information - Segment (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Revenue reporting by end-market and geographic region
Number of operating segments | segment									1
Number of reportable segments | segment									1
Net sales	$ 98,972	$ 126,757	$ 157,779	$ 158,574	$ 139,661	$ 129,308	$ 112,218	$ 94,499	$ 542,082	$ 475,686	$ 331,702
Advanced Packaging, MEMS & RF Filters
Revenue reporting by end-market and geographic region
Net sales									90,775	67,406	67,484
LED Lighting, Display & Compound Semiconductor
Revenue reporting by end-market and geographic region
Net sales									249,974	248,615	145,701
Front-End Semiconductor
Revenue reporting by end-market and geographic region
Net sales									62,582	40,319	8,427
Scientific & Industrial
Revenue reporting by end-market and geographic region
Net sales									$ 138,751	$ 119,346	$ 110,090

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Segment Reporting and Geographic Information - Geographic (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue reporting by end-market and geographic region
Net sales	$ 98,972	$ 126,757	$ 157,779	$ 158,574	$ 139,661	$ 129,308	$ 112,218	$ 94,499	$ 542,082	$ 475,686	$ 331,702
Long-lived Tangible Assets	80,284				85,058				80,284	85,058	60,646
United States
Revenue reporting by end-market and geographic region
Net sales									125,659	93,433	85,582
Long-lived Tangible Assets	78,503				81,046				78,503	81,046	60,012
China
Revenue reporting by end-market and geographic region
Net sales									194,032	106,674	84,604
Long-lived Tangible Assets	81				64				81	64	219
EMEA
Revenue reporting by end-market and geographic region
Net sales									89,102	72,979	84,181
Long-lived Tangible Assets	205				231				205	231	93
Rest Of World
Revenue reporting by end-market and geographic region
Net sales									133,289	202,600	77,335
Long-lived Tangible Assets	$ 1,495				$ 3,717				$ 1,495	$ 3,717	$ 322

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Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information
Net sales	$ 98,972	$ 126,757	$ 157,779	$ 158,574	$ 139,661	$ 129,308	$ 112,218	$ 94,499	$ 542,082	$ 475,686	$ 331,702
Gross profit	35,259	46,385	55,395	56,680	55,352	50,529	35,847	34,500	193,719	176,228	133,098
Net income (loss)	$ (144,674)	$ (8,953)	$ (237,634)	$ (15,827)	$ (8,479)	$ (23,740)	$ (20,817)	$ 1,640	$ (407,088)	$ (51,396)	$ (122,027)
Basic income (loss) per common share (in dollars per share)	$ (3.11)	$ (0.19)	$ (5.02)	$ (0.34)	$ (0.18)	$ (0.51)	$ (0.49)	$ 0.04	$ (8.63)	$ (1.16)	$ (3.10)
Diluted earnings (loss) per share (in dollars per share)	$ (3.11)	$ (0.19)	$ (5.02)	$ (0.34)	$ (0.18)	$ (0.51)	$ (0.49)	$ 0.04	$ (8.63)	$ (1.16)	$ (3.10)

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Selected Quarterly Financial Information (unaudited) - Impairments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018
Future investments
Impairment charges, Definite-lived intangible assets	$ 216,400
Impairment		$ 122,829
In-process R&D
Future investments
Impairment charges, Indefinite-lived intangible assets	$ 35,900

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Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation and Qualifying Accounts
Balance at Beginning of Period	$ 100,726	$ 105,030	$ 54,406
Charged (Credited) to Costs and Expenses	14,499	(49,490)	50,715
Charged to Other Accounts		45,301
Deductions		(115)	(91)
Balance at End of Period	115,225	100,726	105,030
Allowance for doubtful accounts
Valuation and Qualifying Accounts
Balance at Beginning of Period	270	286	206
Charged (Credited) to Costs and Expenses		99	171
Deductions		(115)	(91)
Balance at End of Period	270	270	286
Valuation allowance in net deferred tax assets
Valuation and Qualifying Accounts
Balance at Beginning of Period	100,456	104,744	54,200
Charged (Credited) to Costs and Expenses	14,499	(49,589)	50,544
Charged to Other Accounts		45,301
Balance at End of Period	$ 114,955	$ 100,456	$ 104,744