Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATIONThe Company’s financial segment reporting reflects an organizational alignment intended to leverage the Company’s unique breadth of capabilities to create mission-critical microcontamination control products, specialty chemicals and advanced

materials handing solutions that maximize manufacturing yields, reduce manufacturing costs and enable higher device performance for its customers. While these segments have separate products and technical know-how, they share a common business systems and processes, technology centers, and strategic and technology roadmaps. The Company’s business is reported in the following three segments:

•Specialty Chemicals and Engineered Materials: SCEM provides high-performance and high-purity process chemistries, gases and materials and safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes.

•Microcontamination Control: MC offers solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

•Advanced Materials Handling: AMH develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a broad set of applications in the semiconductor industry and other high-technology industries.

Segment profit is defined as net sales less direct and indirect segment operating expenses, including certain general and administrative costs for the Company’s human resources, finance and information technology functions. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at approximate market prices. Inter-segment sales are presented as an elimination below. The remaining unallocated expenses consist mainly of the Company’s corporate functions as well as interest expense, amortization of intangible assets and income tax expense.

Corporate assets consist primarily of cash and cash equivalents, deferred tax assets and deferred tax charges.

Summarized financial information for the Company’s reportable segments is shown in the following tables.

(In thousands)	2020		2019		2018
Net sales:
SCEM	$	609,532	$	526,519	$	530,241
MC	742,186		633,664		553,838
AMH	538,682		458,290		493,404
Inter-segment elimination	(31,087)		(27,407)		(26,986)
Total net sales	$	1,859,313	$	1,591,066	$	1,550,497
(In thousands)	2020		2019		2018
Segment profit:
SCEM	$	127,969	$	98,327	$	127,080
MC	248,910		194,398		166,852
AMH	111,028		75,173		92,327
Total segment profit	$	487,907	$	367,898	$	386,259
(In thousands)	2020		2019		2018
Total assets:
SCEM	$	1,022,357	$	936,609	$	757,381
MC	819,602		786,131		680,080
AMH	437,322		372,849		359,991
Corporate	638,415		420,497		520,189
Total assets	$	2,917,696	$	2,516,086	$	2,317,641

(In thousands)	2020		2019		2018
Depreciation and amortization:
SCEM	$	71,417	$	75,391	$	70,329
MC	39,775		41,917		33,590
AMH	25,231		23,911		22,805
Corporate	99		184		544
Total depreciation and amortization	$	136,522	$	141,403	$	127,268
(In thousands)	2020		2019		2018
Capital expenditures:
SCEM	$	54,989	$	57,585	$	44,337
MC	40,656		28,549		38,331
AMH	36,107		25,212		26,545
Corporate	—		1,009		940
Total capital expenditures	$	131,752	$	112,355	$	110,153

The following table reconciles total segment profit to income before income taxes and equity in net loss of affiliate:

(In thousands)	2020		2019		2018
Total segment profit	$	487,907	$	367,898	$	386,259
Less:
Amortization of intangibles	53,092		66,428		62,152
Unallocated general and administrative expenses	39,370		62,192		31,418
Operating income	395,445		239,278		292,689
Interest expense	48,600		46,962		34,094
Interest income	(786)		(4,652)		(3,839)
Other (income) expense, net	(6,656)		(121,081)		8,002
Income before income tax expense	$	354,287	$	318,049	$	254,432

In the following tables, revenue is disaggregated by country or region based on the ship to location of the customer for the years ended December 31, 2020, 2019 and 2018:

	2020
(In thousands)	SCEM		MC		AMH		Inter-segment		Total
North America	$	189,009	$	144,015	$	164,576	$	(31,087)	$	466,513
Taiwan	106,665		171,201		94,339		—		372,205
South Korea	88,580		91,997		92,623		—		273,200
Japan	73,366		124,321		45,209		—		242,896
China	77,817		108,588		61,458		—		247,863
Europe	35,027		67,090		52,321		—		154,438
Southeast Asia	39,068		34,974		28,156		—		102,198
	$	609,532	$	742,186	$	538,682	$	(31,087)	$	1,859,313

	2019
(In thousands)	SCEM		MC		AMH		Inter-segment		Total
North America	$	149,570	$	113,551	$	145,150	$	(27,407)	$	380,864
Taiwan	94,561		144,404		70,864		—		309,829
South Korea	76,447		98,568		69,352		—		244,367
Japan	57,456		104,202		43,832		—		205,490
China	67,877		98,693		48,170		—		214,740
Europe	33,147		45,454		53,622		—		132,223
Southeast Asia	47,461		28,792		27,300		—		103,553
	$	526,519	$	633,664	$	458,290	$	(27,407)	$	1,591,066

(In thousands)	2018
	SCEM		MC		AMH		Inter-segment		Total
North America	$	133,834	$	95,421	$	144,763	$	(26,986)	$	347,032
Taiwan	104,707		118,208		66,948		—		289,863
South Korea	82,890		74,623		84,883		—		242,396
Japan	52,731		110,997		47,027		—		210,755
China	68,365		84,652		51,368		—		204,385
Europe	32,088		40,635		65,352		—		138,075
Southeast Asia	55,626		29,302		33,063		—		117,991
	$	530,241	$	553,838	$	493,404	$	(26,986)	$	1,550,497

The following table summarizes property, plant and equipment, net, attributed to significant countries for the years ended December 31, 2020, 2019 and 2018:

(In thousands)	2020		2019		2018
Property, plant and equipment:
North America	$	348,363	$	329,323	$	289,049
South Korea	55,404		43,540		41,698
Japan	41,044		37,851		34,276
Malaysia	32,727		34,339		31,138
China	29,528		16,473		3,941
Taiwan	17,050		16,264		18,804
Other	1,251		1,754		623
	$	525,367	$	479,544	$	419,529

The Company reported net sales of 10 percent or more of total net sales for Taiwan Semiconductor Manufacturing Company Limited in the amount of $208.3 million, $187.0 million and $153.9 million for the years ended December 31, 2020, 2019 and 2018, respectively, all of which include sales from all the Company’s segments. In addition, the Company reported net sales of 10 percent or more of total net sales for Samsung Electronics Co. in the amount of $164.3 million for the year ended December 31, 2018, which includes sales from all of the Company’s segments.