Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies

Commitments and Contingencies

Note 6 — Commitments and Contingencies

Leases

The Company’s operating leases primarily include real estate leases for properties used for manufacturing, R&D activities, sales and service, and administration, as well as certain equipment leases. Some leases may include options to renew for a period of up to 5 years, while others may include options to terminate the lease. The weighted average

remaining lease term of the Company’s operating leases as of September 30, 2023 was 12 years, and the weighted average discount rate used in determining the present value of future lease payments was 5.6%.

The following table provides the maturities of lease liabilities at September 30, 2023:

	Operating
	Leases
	(in thousands)
Payments due by period:
2023	$	65
2024		4,604
2025		4,095
2026		4,071
2027		3,633
Thereafter		34,245
Total future minimum lease payments		50,713
Less: Imputed interest		(14,734)
Total	$	35,979
Reported as of September 30, 2023
Accrued expenses and other current liabilities	$	3,825
Long-term operating lease liabilities		32,154
Total	$	35,979

Operating lease cost for the three and nine months ended September 30, 2023 were $1.2 million and $3.8 million, respectively, and $1.8 million and $5.5 million, respectively, for the comparable 2022 periods. Variable lease cost for the three and nine months ended September 30, 2023 were $0.3 million and $0.9 million respectively, and $0.5 million and $1.5 million, respectively, for the comparable 2022 periods. Additionally, the Company has an immaterial amount of short-term leases. Operating cash outflows from operating leases for the nine months ended September 30, 2023 and 2022 were $4.4 million and $5.7 million, respectively.

Receivable Purchase Agreement

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 $20.0 million at any point in time. Pursuant to this agreement, the Company sold $8.8 million of receivables during the three months ended September 30, 2023, and $4.6 million was available under the agreement for additional sales of receivables as of September 30, 2023. The Company sold $7.8 million of receivables under this agreement for the nine months ended September 30, 2022. The net sale of accounts receivable under the agreement is reflected as a reduction of accounts receivable in the Company’s Consolidated Balance Sheet at the time of sale and any fees for the sale of trade receivables were not material for the periods presented.

Purchase Commitments

Veeco has purchase commitments of $216.2 million at September 30, 2023, substantially all of which become due within one year.

Bank Guarantees

Veeco has bank guarantees and letters of credit issued by a financial institution on its behalf as needed. At September 30, 2023, outstanding bank guarantees and standby letters of credit totaled $18.7 million, and unused bank guarantees and letters of credit of $13.0 million were available to be drawn upon.

Legal Proceedings

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