Business Segment, Geographic Area, Product Information and Significant Customer Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segment, Geographic Area, Product Information and Significant Customer Information

(22)Business Segment, Geographic Area, Product Information and Significant Customer Information

Reportable Segments and Products

The Company’s CODM, which is the Company’s Chief Executive Officer, utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance. The Company has a diverse base of customers across its three end markets, semiconductor, electronics and packaging, and specialty industrial. The CODM utilizes total gross profit for the purposes of making decisions about allocating resources and assessing performance.

The Company has three reporting segments, VSD, PSD and MSD as described below.

VSD delivers foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. VSD products are derived from the Company’s core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology.

PSD provides a full range of solutions including lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, laser-based systems for high-density interconnect PCB and package manufacturing.

MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. Applying a comprehensive systems-and-solutions approach, MSD’s portfolio includes chemistry, equipment, software, and services for innovative and high-technology applications in a wide variety of end-markets.

The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The accounting policies that the Company uses to derive reportable segment results are substantially the same as those used for external reporting purposes. The Company groups its product offerings by its reportable segments, VSD, PSD, and MSD. For each reportable segment, the Company also provides services relating to the maintenance and repair of its products, installation services and training.

The following table sets forth net revenues by reportable segment:

	Years Ended December 31,
	2023		2022		2021
VSD	$	1,404	$	1,966	$	1,862
PSD		1,012		1,064		1,088
MSD		1,206		517		—
	$	3,622	$	3,547	$	2,950

The following table sets forth a reconciliation of segment gross profit to consolidated net income:

	Years Ended December 31,
	2023			2022			2021
Gross profit by reportable segment:
VSD	$	580		$	856		$	868
PSD		442			499			512
MSD		620			192			—
Total gross profit by reportable segment		1,642			1,547			1,380
Operating expenses:
Research and development		288			241			200
Selling, general and administrative		675			488			385
Acquisition and integration costs		16			52			30
Restructuring		20			10			11
Fees and expenses related to repricing of Term Loan Facility		2			—			—
Amortization of intangible assets		295			146			55
Goodwill and intangible asset impairment		1,902			—			—
Gain on sale of long-lived assets		(2	)		(7	)		—
(Loss) income from operations		(1,554	)		617			699
Interest income		(17	)		(4	)		—
Interest expense		356			177			25
Loss on extinguishment of debt		8			—			—
Other expense, net		27			11			9
(Loss) income before income taxes		(1,928	)		433			665
(Benefit) provision for income taxes		(87	)		100			114
Net (loss) income	$	(1,841	)	$	333		$	551

The following table set forth capital expenditures by reportable segment:

	Years Ended December 31,
	2023		2022		2021
VSD	$	25	$	96	$	37
PSD		30		40		50
MSD		32		28		—
Total capital expenditures	$	87	$	164	$	87

The following table sets forth depreciation and amortization by reportable segment:

	Years Ended December 31,
	2023		2022		2021
VSD	$	29	$	24	$	23
PSD		74		88		81
MSD		294		104		—
Total depreciation and amortization	$	397	$	216	$	104

Total income tax expense is not presented by reportable segment because the necessary information is not available or used by the CODM.

The following table sets forth segment assets by reportable segment:

	Accounts receivable, net		Inventory		Total
December 31, 2023
VSD	$	178	$	542	$	720
PSD		174		294		468
MSD		251		155		406
Total segment assets	$	603	$	991	$	1,594

	Accounts receivable, net		Inventory		Total
December 31, 2022
VSD	$	270	$	491	$	761
PSD		194		296		490
MSD		256		190		446
Total segment assets	$	720	$	977	$	1,697

The Company adjusted the accounts receivable, net balances as of December 31, 2022 to correct for immaterial errors in the segments.

The following is a reconciliation of segment assets to consolidated total assets:

	December 31,
	2023		2022
Total segment assets	$	1,594	$	1,697
Cash and cash equivalents and short-term investments		875		910
Other current assets		227		187
Property, plant and equipment, net		784		800
Right-of-use assets		225		234
Goodwill and intangible assets, net		5,173		7,481
Other assets and long-term assets		240		186
Consolidated total assets	$	9,118	$	11,495

Geographic Area

Information about the Company’s operations by geographic region is presented in the tables below. Net revenues from unaffiliated customers are based on the location in which the sale originated. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues.

	Years Ended December 31,
	2023		2022		2021
Net revenues:
United States	$	1,227	$	1,450	$	1,259
China		680		506		355
South Korea		343		361		386
Japan		254		220		197
Germany		236		243		144
Other		882		767		609
	$	3,622	$	3,547	$	2,950

The Company adjusted the net revenues by geographic area balances as of December 31, 2022 to correct for immaterial errors by location.

Long-lived assets include property, plant and equipment, net, right-of-use assets, and certain other assets, and exclude goodwill, intangible assets and long-term tax-related accounts.

	December 31,
	2023		2022
Long-lived assets:
United States	$	459	$	508
Germany		149		160
China		163		175
Other		326		343
	$	1,097	$	1,186

Goodwill associated with each of the Company’s reportable segments is as follows:

	VSD			PSD			MSD			Total
Reportable segment:
Gross goodwill, at December 31, 2022	$	336		$	1,031		$	3,087		$	4,454
Foreign currency translation and measurement period adjustments		(1	)		—			(66	)		(67	)
Gross goodwill, at December 31, 2023		335			1,031			3,021			4,387
Accumulated goodwill impairment, at December 31, 2022		(141	)		(5	)		—			(146	)
Impairment charge		—			(385	)		(1,302	)		(1,687	)
Accumulated goodwill impairment, at December 31, 2023		(141	)		(390	)		(1,302	)		(1,833	)
Goodwill, net of accumulated impairment, foreign currency translation and measurement period adjustments, at December 31, 2023	$	194		$	641		$	1,719		$	2,554

The Company sells products and services to thousands of customers worldwide, in a wide range of end markets. Revenues from its top ten customers accounted for 30%, 42% and 46% of net revenues for 2023, 2022, and 2021, respectively.

For the year ended December 31, 2023, no customer represented 10% or more of the Company’s net revenues. For the year ended December 31, 2022, the Company had one customer that represented 14% and one customer that represented 10% of net revenues. For the year ended December 31, 2021, the Company had one customer that represented 15% and one customer that represented 11% of net revenues.