Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

(3)Revenue from Contracts with Customers

Contract assets as of March 31, 2024 and December 31, 2023 were $22 and $26, respectively. A roll-forward of the Company’s deferred revenue and customer advances is as follows:

	Three Months Ended
	March 31, 2024			March 31, 2023
Beginning balance, January 1(1)	$	79		$	96
Additions to deferred revenue and customer advances		30			43
Amount of deferred revenue and customer advances recognized in income		(39	)		(41	)
Ending balance, March 31(2)	$	70		$	98

(1)Beginning balance as of January 1, 2024 included $77 of current deferred revenue and customer advances and $2 of non-current deferred revenue. Beginning balance as of January 1, 2023 included $94 of current deferred revenue and customer advances and $2 of non-current deferred revenue.

(2)Ending balance as of March 31, 2024 included $68 of current deferred revenue and customer advances and $2 of non-current deferred revenue. Ending balance as of March 31, 2023 included $96 of current deferred revenue and customer advances and $2 of non-current deferred revenue.

Revenue from certain custom products, including MSD plating equipment, and revenue from certain service contracts are recorded over time. Remaining product and services revenues are recorded at a point in time.

Disaggregation of Revenue

The following tables summarize product and service revenue from contracts with customers in MKS’ three reportable segments.

	Three Months Ended March 31, 2024
	VSD		PSD		MSD		Total
Net revenues:
Products	$	274	$	214	$	266	$	754
Services		58		40		16		114
Total net revenues	$	332	$	254	$	282	$	868

	Three Months Ended March 31, 2023
	VSD		PSD		MSD		Total
Net revenues:
Products	$	263	$	159	$	291	$	712
Services		41		27		14		82
Total net revenues	$	304	$	186	$	304	$	794

The following table summarizes revenue from contracts with customers in the Company’s three end markets: Semiconductor, Electronics and Packaging, and Specialty Industrial.

	Three Months Ended March 31,
	2024		2023
Semiconductor	$	351	$	309
Electronics and Packaging		208		222
Specialty Industrial		309		263
	$	868	$	794