Business Segment and Geographic Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Business Segment and Geographic Information

(15)Business Segment and Geographic Information

The Company has three reportable segments: VSD, PSD and MSD. 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 and allocate resources to the three segments.

Reportable Segments

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, temperature sensing, and vacuum technology.

PSD provides a full range of solutions including lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, opto-mechanical components, optical elements, laser-based systems for flexible printed circuit board (“PCB”) processing, and laser-based systems for high density interconnect PCB and package substrate 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 similar products within its three reportable segments.

During the quarter ended March 31, 2024, the Company moved its OSP product line from the PSD segment to the VSD segment. The purpose of this realignment was to better align the OSP products with semiconductor related products within the VSD segment. Prior periods have been recast to reflect this change.

The following table sets forth net revenues by reportable segment:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
VSD	$	335	$	434	$	668	$	738
PSD		254		271		507		457
MSD		298		298		580		602
	$	887	$	1,003	$	1,755	$	1,797

The following table reconciles gross profit by reportable segment to net income (loss):

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Gross profit by reportable segment:
VSD	$	142		$	196		$	283		$	310
PSD		110			125			227			200
MSD		167			149			324			296
Total gross profit by reportable segment		419			470			834			806
Operating expenses:
Research and development		66			75			136			147
Selling, general and administrative		161			172			331			348
Acquisition and integration costs		2			5			3			11
Restructuring and other		2			11			5			12
Fees and expenses related to amendments to the Term Loan Facility		—			—			3			—
Amortization of intangible assets		61			76			123			157
Goodwill and intangible asset impairments		—			1,827			—			1,827
Income (loss) from operations		127			(1,696	)		233			(1,696	)
Interest income		(5	)		(4	)		(11	)		(7	)
Interest expense		79			88			166			173
Loss on extinguishment of debt		38			—			47			—
Other (income) expense, net		(7	)		11			(10	)		9
Income (loss) before income taxes		22			(1,791	)		41			(1,871	)
(Benefit) provision for income taxes		(1	)		(22	)		4			(59	)
Net income (loss)	$	23		$	(1,769	)	$	37		$	(1,812	)

Interest income, interest expense and income tax (benefit) provision are not presented by reportable segment because the necessary information is not classified within the segments nor used by the CODM.

The following table sets forth segment assets by reportable segment:

June 30, 2024	Accounts  receivable, net		Inventories		Total
VSD	$	189	$	525	$	714
PSD		170		262		432
MSD		238		151		389
Total segment assets	$	597	$	938	$	1,535

December 31, 2023	Accounts  receivable, net		Inventories		Total
VSD	$	181	$	553	$	734
PSD		171		283		454
MSD		251		155		406
Total segment assets	$	603	$	991	$	1,594

The following table reconciles total segment assets to total assets:

	June 30, 2024		December 31, 2023
Total segment assets	$	1,535	$	1,594
Cash and cash equivalents and short-term investments		851		875
Other current assets		262		227
Property, plant and equipment, net		759		784
Right-of-use assets, net		229		225
Goodwill and intangible assets, net		4,913		5,173
Other assets		314		240
Total assets	$	8,863	$	9,118

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

	VSD			PSD			MSD			Total
Reportable segment:
Gross goodwill, at December 31, 2023	$	359		$	1,007		$	3,021		$	4,387
Foreign currency translation		(1	)		(2	)		(56	)		(59	)
Gross goodwill, at June 30, 2024		358			1,005			2,965			4,328
Accumulated goodwill impairment, at December 31, 2023 and June 30, 2024		(141	)		(390	)		(1,302	)		(1,833	)
Goodwill, net of accumulated impairment and foreign currency translation, at June 30, 2024	$	217		$	615		$	1,663		$	2,495

Geographic Area

Information about the Company’s operations by geographic area is presented in the tables below. Starting in the second quarter of 2024, the Company changed its basis of reporting geographical net revenues from the location in which the sale originated to the shipped-to location of the end customer. Prior periods have been recast to reflect this change, which was made to better align with how management reviews geographic net revenues. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues.

	Three Months Ended June 30,				Six Months Ended June 30,
Net revenues:	2024		2023		2024		2023
United States	$	202	$	265	$	421	$	452
China		199		200		369		360
South Korea		82		90		170		169
Taiwan		62		65		110		128
Japan		55		82		112		140
Singapore		55		69		111		124
Other		232		232		462		424
	$	887	$	1,003	$	1,755	$	1,797

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

Long-lived assets:	June 30, 2024		December 31, 2023
United States	$	462	$	459
China		165		163
Germany		136		149
Other		321		326
	$	1,084	$	1,097