Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 was 11 years, and the weighted average discount rate used in determining the present value of future lease payments was 5.7%.

The following table provides the maturities of lease liabilities at June 30, 2024:

	Operating
	Leases
	(in thousands)
Payments due by period:
2024	$	1,374
2025		4,236
2026		4,524
2027		4,370
2028		4,170
Thereafter		34,911
Total future minimum lease payments		53,585
Less: Imputed interest		(14,991)
Total	$	38,594
Reported as of June 30, 2024
Accrued expenses and other current liabilities	$	3,656
Long-term operating lease liabilities		34,938
Total	$	38,594

Operating lease costs for the three and six months ended June 30, 2024 were $1.2 million and $2.4 million , respectively, and $1.2 million and $2.6 million, respectively for the comparable 2023 period. Variable lease costs for the three and six months ended June 30, 2024 were $0.3 million and $0.7 million, respectively, and $0.2 million and $0.5 million, respectively for the comparable 2023 period. Additionally, the Company has an immaterial amount of short-term leases. Cash outflows from operating leases for the six months ended June 30, 2024 and 2023 were $3.4 million and $3.0 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 $30.0 million at any point in time. Pursuant to this agreement, the Company sold $8.0 million of receivables for the three and six months ended June 30, 2024, and $22.0 million was available under the agreement for additional sales of receivables as of June 30, 2024. The Company sold $9.9 million and $18.2 million, respectively, of receivables under this agreement for the three and six months ended June 30, 2023. 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 $175.3 million at June 30, 2024, 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 June 30, 2024, outstanding bank guarantees and standby letters of credit totaled $22.7 million, and unused bank guarantees and letters of credit of $17.8 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.