10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 0-23621

MKS INSTRUMENTS, INC.

(Exact name of registrant as specified in its charter)

Massachusetts	04-2277512
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
2 Tech Drive, Suite 201, Andover, Massachusetts	01810
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (978) 645-5500

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of April 29, 2015, the registrant had 53,371,635 shares of common stock outstanding.

MKS INSTRUMENTS, INC.

FORM 10-Q

INDEX

PART I.        FINANCIAL INFORMATION
	ITEM 1.	FINANCIAL STATEMENTS (Unaudited).
		Consolidated Balance Sheets – March 31, 2015 and December 31, 2014	3
		Consolidated Statements of Operations and Comprehensive Income – Three months ended March 31, 2015 and 2014	4
		Consolidated Statements of Cash Flows –Three months ended March 31, 2015 and 2014	5
		Notes to Unaudited Consolidated Financial Statements	6
	ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	24
	ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	31
	ITEM 4.	CONTROLS AND PROCEDURES.	31
PART II.      OTHER INFORMATION
	ITEM 1.	LEGAL PROCEEDINGS.	32
	ITEM 1A.	RISK FACTORS.	32
	ITEM 6.	EXHIBITS.	32
	SIGNATURES		33
	EXHIBIT INDEX

2

PART I. FINANCIAL INFORMATION

ITEM 1.         FINANCIAL STATEMENTS.

MKS INSTRUMENTS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(Unaudited)

	March 31, 2015			December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	192,713		$	305,437
Short-term investments		158,631			129,594
Trade accounts receivable, net		124,445			106,362
Inventories, net		164,412			155,169
Deferred income taxes		13,560			14,017
Other current assets		21,580			27,512
Total current assets		675,341			738,091
Property, plant and equipment, net		70,908			72,776
Long-term investments		237,313			157,201
Goodwill		199,330			192,381
Intangible assets, net		49,553			46,389
Other assets		17,165			17,206
Total assets	$	1,249,610		$	1,224,044
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	37,549		$	34,166
Accrued compensation		21,349			26,970
Income taxes payable		6,455			6,702
Other current liabilities		38,513			35,789
Total current liabilities		103,866			103,627
Other liabilities		41,055			38,595
Commitments and contingencies (Note 18)
Stockholders’ equity:
Preferred Stock, $0.01 par value per share, 2,000,000 shares authorized; none issued and outstanding		—			—
Common Stock, no par value, 200,000,000 shares authorized; 53,289,953 and 53,154,666 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively		113			113
Additional paid-in capital		736,290			734,732
Retained earnings		374,063			349,061
Accumulated other comprehensive loss		(5,777	)		(2,084	)
Total stockholders’ equity		1,104,689			1,081,822
Total liabilities and stockholders’ equity	$	1,249,610		$	1,224,044

The accompanying notes are an integral part of the consolidated financial statements.

3

MKS INSTRUMENTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Net revenues:
Products	$	186,096		$	181,186
Services		27,743			25,167
Total net revenues		213,839			206,353
Cost of revenues:
Cost of products		98,652			100,211
Cost of services		18,141			16,770
Total cost of revenues (exclusive of amortization shown separately below)		116,793			116,981
Gross profit		97,046			89,372
Research and development		16,680			15,618
Selling, general and administrative		30,867			34,591
Acquisition costs		30			228
Restructuring		788			747
Amortization of intangible assets		1,671			410
Income from operations		47,010			37,778
Interest income		541			252
Interest expense		37			17
Income before income taxes		47,514			38,013
Provision for income taxes		13,728			6,768
Net income	$	33,786		$	31,245
Other comprehensive income:
Changes in value of financial instruments designated as cash flow hedges, net of tax benefit(1)	$	(822	)	$	(163	)
Foreign currency translation adjustments, net of tax of $0		(3,206	)		21
Unrealized gain on investments, net of tax expense(2)		334			36
Total comprehensive income	$	30,092		$	31,139
Net income per share:
Basic	$	0.63		$	0.58
Diluted	$	0.63		$	0.58
Cash dividends per common share	$	0.165		$	0.16
Weighted average common shares outstanding:
Basic		53,214			53,411
Diluted		53,529			53,776

(1) Tax benefit was $133 and $108 for the three months ended March 31, 2015 and 2014, respectively.

(2) Tax expense was $54 and $24 for the three months ended March 31, 2015 and 2014, respectively.

The accompanying notes are an integral part of the consolidated financial statements.

4

MKS INSTRUMENTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities:
Net income	$	33,786		$	31,245
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,532			4,150
Stock-based compensation		3,212			3,198
Provision for excess and obsolete inventory		2,683			2,613
Provision for bad debt		(172	)		94
Deferred income taxes		736			(3,974	)
Excess tax benefits from stock-based compensation		(524	)		(189	)
Other		1			(141	)
Changes in operating assets and liabilities:
Trade accounts receivable		(19,030	)		(2,784	)
Inventories		(12,817	)		(7,402	)
Income taxes		2,034			(5,462	)
Other current assets		(5,029	)		(1,286	)
Accrued compensation		(4,930	)		(6,872	)
Other current and non-current liabilities		2,735			2,512
Accounts payable		3,587			(4,656	)
Other assets		7,801			(1,143	)
Net cash provided by operating activities		19,605			9,903
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired		(9,867	)		—
Purchases of investments		(164,327	)		(128,524	)
Maturities of investments		38,205			104,623
Sales of investments		17,414			24,948
Purchases of property, plant and equipment		(2,504	)		(3,098	)
Other		5			79
Net cash used in investing activities		(121,074	)		(1,972	)
Cash flows from financing activities:
Repurchase of common stock		—			(945	)
Net payments related to employee stock awards		(2,105	)		(762	)
Dividend payments to common stockholders		(8,784	)		(8,553	)
Excess tax benefits from stock-based compensation		524			189
Net cash used in financing activities		(10,365	)		(10,071	)
Effect of exchange rate changes on cash and cash equivalents		(890	)		328
Decrease in cash and cash equivalents		(112,724	)		(1,812	)
Cash and cash equivalents at beginning of period		305,437			288,902
Cash and cash equivalents at end of period	$	192,713		$	287,090

The accompanying notes are an integral part of the consolidated financial statements.

5

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share data)

1) Basis of Presentation

The terms “MKS” and the “Company” refer to MKS Instruments, Inc. and its subsidiaries. The interim financial data as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 are unaudited; however, in the opinion of MKS, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The consolidated balance sheet presented as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date. The unaudited consolidated financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the MKS Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission on February 25, 2015.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, stock-based compensation, inventory, intangible assets, goodwill and other long-lived assets, acquisition expenses, income taxes and investments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

2) Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods and services to customers in an amount that reflects the consideration that the company expects to be entitled to in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and assets recognized from costs incurred to obtain or fulfill a contract. This pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in March 2015, the FASB proposed a one-year deferral. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has not yet selected a transition method. The Company is currently evaluating the requirements of ASU No. 2014-09 and has not yet determined its impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Under this ASU, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on the Company’s financial statements or disclosures.

6

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

3) Investments

The fair value of short-term investments with maturities or estimated lives of less than one year consists of the following:

	March 31, 2015		December 31, 2014
Available-for-sale investments:
Time deposits and certificates of deposit	$	5,400	$	20,900
Bankers’ acceptance drafts		327		82
Commercial paper		1,447		—
Corporate obligations		58,331		24,020
Municipal bonds		5,798		2,099
U.S. agency obligations		87,328		82,493
	$	158,631	$	129,594

The fair value of long-term investments with maturities of more than one year consists of the following:

	March 31, 2015		December 31, 2014
Available-for-sale investments:
Time deposits and certificates of deposit	$	—	$	48
Asset-backed securities		129,242		75,674
Corporate obligations		90,114		64,669
Municipal bonds		1,880		1,254
U.S. agency obligations		16,077		15,556
	$	237,313	$	157,201

7

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

The following tables show the gross unrealized gains and (losses) aggregated by investment category for short-term and long-term available-for-sale investments:

As of March 31, 2015:	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Short-term investments:
Time deposits and certificates of deposit	$	5,400	$	—	$	—		$	5,400
Bankers’ acceptance drafts		327		—		—			327
Commercial paper		1,447		—		—			1,447
Corporate obligations		58,336		10		(15	)		58,331
Municipal bonds		5,800		1		(3	)		5,798
U.S. agency obligations		87,311		23		(6	)		87,328
	$	158,621	$	34	$	(24	)	$	158,631
Long-term investments:
Asset-backed securities	$	129,209	$	66	$	(33	)	$	129,242
Corporate obligations		90,128		44		(58	)		90,114
Municipal bonds		1,878		3		(1	)		1,880
U.S. agency obligations		16,070		8		(1	)		16,077
	$	237,285	$	121	$	(93	)	$	237,313
As of December 31, 2014:	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Short-term investments:
Time deposits and certificates of deposit	$	20,901	$	—	$	(1	)	$	20,900
Bankers’ acceptance drafts		82		—		—			82
Corporate obligations		24,029		2		(11	)		24,020
Municipal bonds		2,100		—		(1	)		2,099
U.S. agency obligations		82,488		14		(9	)		82,493
	$	129,600	$	16	$	(22	)	$	129,594
Long-term investments:
Time deposits and certificates of deposit	$	48	$	—	$	—		$	48
Asset-backed securities		75,778		5		(109	)		75,674
Corporate obligations		64,842		1		(174	)		64,669
Municipal bonds		1,258		—		(4	)		1,254
U.S. agency obligations		15,563		2		(9	)		15,556
	$	157,489	$	8	$	(296	)	$	157,201

Interest income is accrued as earned. Dividend income is recognized as income on the date the stock trades “ex-dividend.” The cost of marketable securities sold is determined by the specific identification method. Realized gains or (losses) are reflected in income and were immaterial for the three months ended March 31, 2015 and 2014.

In accordance with the Company’s investment policy, no security shall have a maturity or average life longer than three years. The average duration of the portfolio shall be no more than one year. Corporate securities must have ratings of A3/A- or better. Asset-backed securities must be rated AAA. Short-term ratings of A-2/P2/F2 or higher are also permitted. With respect to compliance with these investment guidelines, the rating agencies include Moody’s Investor Service, Standard & Poor’s and Fitch Investor Service. The middle of Moody’s, Standard & Poor’s and Fitch rating shall be used to determine compliance with credit quality guidelines. If a security is rated by two rating agencies, the lower rating will apply. If only one rating exists, that rating shall be used.

8

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

4) Fair Value Measurements

In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities assessed as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

9

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

Assets and liabilities of the Company are measured at fair value on a recurring basis as of March 31, 2015 and are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	March 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	87,790	$	87,790	$	—	$	—
Bankers’ acceptance drafts		99		—		99		—
Available-for-sale securities:
Bankers’ acceptance drafts		327		—		327		—
Time deposits and certificates of deposit		5,400		—		5,400		—
Commercial paper		1,447		—		1,447		—
Asset-backed securities		129,242		—		129,242		—
Corporate obligations		148,445		—		148,445		—
Municipal bonds		7,678		—		7,678		—
U.S. agency obligations		103,405		—		103,405		—
Derivatives – currency forward contracts		1,240		—		1,240		—
Total assets	$	485,073	$	87,790	$	397,283	$	—
Liabilities:
Derivatives – currency forward contracts	$	318	$	—	$	318	$	—
Reported as follows:
Assets:
Cash and cash equivalents(1)	$	87,889	$	87,790	$	99	$	—
Short-term investments		158,631		—		158,631		—
Other current assets		1,240		—		1,240		—
Total current assets	$	247,760	$	87,790	$	159,970	$	—
Long-term investments	$	237,313	$	—	$	237,313	$	—
Liabilities:
Other current liabilities	$	318	$	—	$	318	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $95,212 and non-negotiable time deposits of $9,612 as of March 31, 2015.

10

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2014, are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	129,092	$	129,092	$	—	$	—
Bankers acceptance drafts		131		—		131		—
Corporate obligations		700		—		700		—
Available-for-sale investments:
Time deposits and certificates of deposit		20,948		—		20,948		—
Asset-backed securities		75,674		—		75,674		—
Bankers acceptance drafts		82		—		82		—
Corporate obligations		88,689		—		88,689		—
Municipal bonds		3,353		—		3,353		—
U.S. agency obligations		98,049		—		98,049		—
Derivatives – currency forward contracts		2,110		—		2,110		—
Total assets	$	418,828	$	129,092	$	289,736	$	—
Liabilities:
Derivatives – currency forward contracts	$	—	$	—	$	—	$	—
Reported as follows:
Assets:
Cash and cash equivalents (1)	$	129,923	$	129,092	$	831	$	—
Short-term investments		129,594		—		129,594		—
Other current assets		2,110		—		2,110		—
Total current assets	$	261,627	$	129,092	$	132,535	$	—
Long-term investments	$	157,201	$	—	$	157,201	$	—
Liabilities:
Other current liabilities	$	—	$	—	$	—	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $167,517 and non-negotiable time deposits of $7,997 as of December 31, 2014.

Money Market Funds

Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy.

Bankers’ Acceptance Drafts

Bankers’ acceptance drafts are short-term credit investments created by a non-financial firm and guaranteed by a bank. These drafts are often traded at a discount from face value and may be traded on a secondary market.

Available-For-Sale Investments

As of March 31, 2015 and December 31, 2014, available-for-sale investments consisted of time deposits and drafts denominated in the Euro currency, certificates of deposit, commercial paper, asset-backed securities (which include auto loans, credit card receivables and equipment trust receivables), corporate obligations, municipal bonds and U.S. agency obligations. The Company measures its debt and equity investments at fair value.

11

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

Derivatives

As a result of the Company’s global operating activities, the Company is exposed to market risks from changes in foreign currency exchange rates, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate fluctuations through the use of derivative financial instruments. The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The forward foreign currency exchange contracts are valued using broker quotations, or market transactions and are classified within Level 2 of the fair value hierarchy.

5) Derivatives

The Company enters into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments and those utilized as economic hedges. The Company operates internationally and, in the normal course of business, is exposed to fluctuations in interest rates and foreign exchange rates. These fluctuations can increase the costs of financing, investing and operating the business. The Company has used derivative instruments, such as forward contracts, to manage certain foreign currency exposure.

By nature, all financial instruments involve market and credit risks. The Company enters into derivative instruments with major investment grade financial institutions and no collateral is required. The Company has policies to monitor the credit risk of these counterparties. While there can be no assurance, the Company does not anticipate any material non-performance by any of these counterparties.

The Company hedges a portion of its forecasted foreign currency denominated intercompany sales of inventory, over a maximum period of eighteen months, using forward foreign exchange contracts accounted for as cash-flow hedges related to Japanese, South Korean, British, Euro and Taiwanese currencies. To the extent these derivatives are effective in off-setting the variability of the hedged cash flows, and otherwise meet the hedge accounting criteria, changes in the derivatives’ fair value are not included in current earnings but are included in other comprehensive income (loss) (“OCI”) in stockholders’ equity. These changes in fair value will subsequently be reclassified into earnings, as applicable, when the forecasted transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. The cash flows resulting from forward exchange contracts are classified in the consolidated statements of cash flows as part of cash flows from operating activities. The Company does not enter into derivative instruments for trading or speculative purposes.

To the extent the hedge accounting criteria is not met, the related foreign currency forward contracts are considered as economic hedges and changes in the fair value of these contracts are recorded immediately in earnings in the period in which they occur. These include hedges that are used to reduce exchange rate risks arising from the change in fair value of certain foreign currency denominated assets and liabilities (i.e., payables, receivables) and other economic hedges where the hedge accounting criteria were not met.

12

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

As of March 31, 2015 and December 31, 2014, the Company had outstanding forward foreign exchange contracts with gross notional values of $84,063 and $28,650, respectively. The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of March 31, 2015 and December 31, 2014:

	March 31, 2015
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value(1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	29,708	$	478
U.S. Dollar/South Korean Won		32,692		133
U.S. Dollar/Euro		5,009		286
U.S. Dollar/U.K. Pound Sterling		3,794		74
U.S. Dollar/Taiwan Dollar		12,860		(49	)
Total	$	84,063	$	922

(1) Represents the fair value of the net asset / (liability) amount included in the consolidated balance sheets.

	December 31, 2014
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value (1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	8,035	$	1,107
U.S. Dollar/South Korean Won		12,512		372
U.S. Dollar/Euro		2,060		185
U.S. Dollar/U.K. Pound Sterling		1,308		70
U.S. Dollar/Taiwan Dollar		4,735		232
Total	$	28,650	$	1,966

(1) Represents the fair value of the net asset / (liability) amount included in the consolidated balance sheets.

The following table provides a summary of the fair value amounts of the Company’s derivative instruments:

	March 31, 2015			December 31, 2014
Derivative assets:
Forward exchange contracts	$	1,240		$	1,966
Derivative liabilities:
Forward exchange contracts		(318	)		—
Total net derivative asset designated as hedging instruments(1)	$	922		$	1,966

(1) The derivative asset of $1,240 and derivative liability of $318 are classified in other current assets and other current liabilities in the consolidated balance sheet as of March 31, 2015. The derivative asset of $1,966 is classified in other current assets in the consolidated balance sheet as of December 31, 2014. These foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet.

The net amount of existing gains or losses as of March 31, 2015 that is expected to be reclassified from accumulated OCI into earnings within the next twelve months is immaterial.

13

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

The following table provides a summary of the gains (losses) on derivatives designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Designated as Cash Flow Hedging Relationships	2015			2014
Forward exchange contracts:
Net (loss) recognized in OCI(1)	$	(2,090	)	$	(334	)
Net gain (loss) reclassified from accumulated OCI into income(2)	$	1,193		$	(94	)

(1) Net change in the fair value of the effective portion classified in OCI.

(2) Effective portion classified in cost of products for the three months ended March 31, 2015 and 2014. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial.

The following table provides a summary of gains on derivatives not designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Not Designated as Hedging Instruments	2015		2014
Forward exchange contracts:
Net gain recognized in income(1)	$	98	$	106

(1) The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries. These derivatives are not designated as hedging instruments and are recorded immediately in selling, general and administrative expenses.

6) Inventories

Inventories consist of the following:

	March 31, 2015		December 31, 2014
Raw materials	$	85,622	$	81,121
Work-in-process		27,374		26,604
Finished goods		51,416		47,444
	$	164,412	$	155,169

7) Acquisitions

Precisive, LLC

On March 17, 2015, the Company acquired 100% of Precisive, LLC (“Precisive”), for $12,155, net of cash acquired of $435, subject to final working capital adjustments. The purchase price includes a deferred payment amount of $2,600 to cover any potential indemnification claims, which amount will be paid to the sellers after 15 months assuming there are no indemnification claims. Precisive is an innovative developer of optical analyzers based on Tunable Filter Spectroscopy (TFS), which provide real-time gas analysis in the natural gas and hydrocarbon processing industries, including refineries, hydrocarbon processing plants, gas-to-power machines, biogas processes and fuel gas transportation and metering, while delivering customers a lower total cost of ownership.

The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	285
Non-current assets		18
Intangible assets		5,110
Goodwill		7,085
Total assets acquired		12,498
Total current liabilities assumed		343
Total purchase price, net of cash acquired of $435	$	12,155

14

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

The entire purchase price is expected to be deductible for tax purposes. The following table reflects the allocation of the acquired intangible assets and related estimates of useful lives. These acquired intangibles will be amortized on a straight-line basis, which approximates the pattern of use.

Order backlog	$	50	18 months
Customer relationships		1,430	12 years
Exclusive patent license		2,600	10 years
Trade names		210	10 years
Current developed technology		820	10 years
	$	5,110

The fair value of the acquired intangibles was determined using the income approach. This acquisition resulted in a purchase price that exceeded the estimated fair value of tangible and intangible assets, which excess was allocated to goodwill. The Company believes the amount of goodwill relative to identifiable intangible assets relates to several factors including: (1) potential buyer-specific synergies related to market opportunities for a combined product offering; (2) potential to leverage the Company’s sales force and intellectual property to attract new customers and revenue; and (3) potential to strengthen and expand into new but complementary markets, including targeting new applications such as natural gas processing, hydrocarbon processing and other oil and gas segments.

The results of this acquisition were included in the Company’s consolidated operations beginning on March 17, 2015. The pro forma consolidated statements reflecting the operating results of Precisive, had it been acquired January 1, 2014, would not differ materially from the operating results of the Company as reported for the three months ended March 31, 2015. Precisive is included in the Company’s Instruments, Controls and Vacuum Products group and the Advanced Manufacturing Capital Equipment reportable segment. The revenue and net earnings from Precisive, since the date of acquisition through the period ended March 31, 2015, were immaterial.

8) Goodwill and Intangible Assets

Goodwill

The Company’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. The Company assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process.

Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results.

15

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

The changes in the carrying amount of goodwill and accumulated impairment (loss) during the three months ended March 31, 2015 and year ended December 31, 2014 were as follows:

	2015									2014
	Gross Carrying Amount			Accumulated Impairment (Loss)			Net			Gross Carrying Amount			Accumulated Impairment (Loss)			Net
Beginning balance at January 1	$	331,795		$	(139,414	)	$	192,381		$	290,323		$	(139,414	)	$	150,909
Acquired goodwill (1)		7,085			—			7,085			41,993			—			41,993
Foreign currency translation		(136	)		—			(136	)		(521	)		—			(521	)
Ending balance at March 31, 2015 and December 31, 2014	$	338,744		$	(139,414	)	$	199,330		$	331,795		$	(139,414	)	$	192,381

(1) During the first quarter of 2015, the Company recorded $7,085 of goodwill related to the Precisive acquisition. During the second quarter of 2014, the Company recorded $41,612 of goodwill related to the May 30, 2014 acquisition of the Granville-Phillips division of Brooks Automation, Inc. During the first quarter of 2014, the Company recorded a purchase accounting adjustment of $381 related to the March 12, 2013 purchase of Alter S.r.l.

Intangible Assets

Components of the Company’s intangible assets are comprised of the following:

As of March 31, 2015:	Gross		Accumulated Amortization			Foreign Currency Translation			Net
Completed technology (1)	$	101,200	$	(80,477	)	$	(78	)	$	20,645
Customer relationships (1)		37,251		(13,610	)		228			23,869
Patents, trademarks, trade names and other (1)		30,396		(25,383	)		26			5,039
	$	168,847	$	(119,470	)	$	176		$	49,553

(1) During the three months ended March 31, 2015, the Company recorded $5,110 of separately identified intangible assets of which $820 was completed technology, $1,430 was customer relationships and $2,860 was trademarks, trade names and other, related to the Precisive acquisition.

As of December 31, 2014:	Gross		Accumulated Amortization			Foreign Currency Translation		Net
Completed technology (2)	$	100,380	$	(79,875	)	$	135	$	20,640
Customer relationships (2)		35,821		(12,634	)		280		23,467
Patents, trademarks, trade names and other (2)		27,536		(25,290	)		36		2,282
	$	163,737	$	(117,799	)	$	451	$	46,389

(2) During 2014, the Company recorded $38,850 of separately identified intangible assets related to the May 30, 2014 acquisition of the Granville-Phillips division of Brooks Automation, Inc., of which $15,700 was completed technology, $21,250 was customer relationships and $1,900 was trademarks and trade names.

16

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

Aggregate amortization expense related to acquired intangibles for the three months ended March 31, 2015 and 2014 was $1,671 and $410, respectively. Estimated amortization expense for each of the remaining fiscal years is as follows:

Year	Amount
2015 (remaining)	$	5,106
2016		6,701
2017		6,628
2018		6,613
2019		6,582
2020		6,514
Thereafter		11,409

9) Other Assets

	March 31, 2015		December 31, 2014
Other Current Assets:
Income tax receivable	$	161	$	10,322
Other		21,419		17,190
Total other current assets	$	21,580	$	27,512
Other Assets:
Deferred tax assets, net	$	6,868	$	7,202
Long-term income tax receivable		8,175		8,092
Other		2,122		1,912
Total other assets	$	17,165	$	17,206

10) Other Liabilities

	March 31, 2015		December 31, 2014
Other Current Liabilities:
Product warranties	$	6,064	$	6,266
Deferred revenue		5,997		8,283
Other		26,452		21,240
Total other current liabilities	$	38,513	$	35,789
Other Liabilities:
Long-term income tax payable	$	20,337	$	20,203
Accrued compensation		12,312		12,068
Other		8,406		6,324
Total other liabilities	$	41,055	$	38,595

11) Debt

The Company’s Japanese subsidiary has lines of credit and short-term borrowing arrangements with two financial institutions which generally expire and are renewed at three month intervals. The lines of credit provided for aggregate borrowings as of March 31, 2015 of up to an equivalent of $19,155 U.S. dollars. One of the borrowing arrangements has an interest rate based on the Tokyo Interbank Offer Rate at the time of borrowing and the other has an interest rate based on the Japanese Short-term Prime Lending Rate. There were no borrowings outstanding under these arrangements at March 31, 2015 and December 31, 2014.

12) Product Warranties

The Company provides for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the

17

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

quality of its component suppliers, the Company’s warranty obligation is affected by shipment volume, product failure rates, utilization levels, material usage, and supplier warranties on parts delivered to the Company. Should actual product failure rates, utilization levels, material usage, or supplier warranties on parts differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The product warranty liability is included in other current liabilities in the consolidated balance sheets.

Product warranty activities were as follows:

	Three Months Ended March 31,
	2015			2014
Beginning of period	$	6,266		$	6,956
Provision for product warranties		1,109			704
Direct charges to warranty liability		(1,244	)		(656	)
Foreign currency translation		(67	)		9
End of period	$	6,064		$	7,013

13) Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2015 and 2014 was 28.9% and 17.8%, respectively. The effective tax rate for the three months ended March 31, 2015 was lower than the U.S. statutory tax rate primarily due the impact of lower tax rates on foreign income and the deduction for domestic production activities. The effective tax rate for the three months ended March 31, 2014 was lower than the U.S. statutory tax rate primarily due to the discrete release of income tax reserves related to the effective settlement of a foreign tax examination. The geographic mix of income and profits earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory rate also had a significant impact on the effective tax rate for the three months ended March 31, 2014.

At March 31, 2015, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was approximately $19,508. At December 31, 2014, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was approximately $19,610. The net decrease from December 31, 2014 was attributable to a release of reserves for uncertain tax positions due to the expiration of the statute of limitations related to a previously open tax year. As of March 31, 2015, if these benefits were recognized in a future period, the timing of which is not estimable, the net unrecognized tax benefit of $11,524, excluding interest and penalties, would impact the Company’s effective tax rate. The Company accrues interest expense, and if applicable penalties, for any uncertain tax positions. Interest and penalties are classified as a component of income tax expense. At March 31, 2015 and December 31, 2014, the Company had accrued interest on unrecognized tax benefits of approximately $638 and $578, respectively.

The Company and its subsidiaries are subject to examination by federal, state and foreign tax authorities. The Internal Revenue Service commenced an examination of the Company’s U.S. federal tax filings for tax years 2011 through 2013 during the quarter ended March 31, 2015. As a result, the U.S. statute of limitations remains open between tax years 2011 through present. However, carryforward amounts from prior years may still be adjusted upon examination by tax authorities if they are used in a future period. The U.S. statute of limitations for the Company’s tax filings in other jurisdictions varies between fiscal years 2008 through the present.

18

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

14) Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended March 31,
	2015		2014
Numerator:
Net income	$	33,786	$	31,245
Denominator:
Shares used in net income per common share – basic		53,214,000		53,411,000
Effect of dilutive securities:
Stock options, restricted stock and employee stock purchase plan		315,000		365,000
Shares used in net income per common share – diluted		53,529,000		53,776,000
Net income per common share:
Basic	$	0.63	$	0.58
Diluted	$	0.63	$	0.58

Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding (using the treasury stock method) if securities containing potentially dilutive common shares (stock options and restricted stock units) had been converted to such common shares, and if such assumed conversion is dilutive.

As of March 31, 2015, stock options and restricted stock units related to an aggregate of approximately 760,000 shares were outstanding. For the three months ended March 31, 2015 and 2014, the potential dilutive effect of 0 and approximately 1,400 weighted-average shares, respectively, of restricted stock units and stock options were excluded from the computation of diluted weighted-average shares outstanding as the shares would have an anti-dilutive effect on EPS.

15) Stockholder’s Equity

Stock Repurchase Program

On July 25, 2011, the Company’s Board of Directors approved a share repurchase program for the repurchase of up to an aggregate of $200,000 of its outstanding common stock from time to time in open market purchases, privately negotiated transactions or through other appropriate means. The timing and quantity of any shares repurchased depends upon a variety of factors, including business conditions, stock market conditions and business development activities, including, but not limited to, merger and acquisition opportunities. These repurchases may be commenced, suspended or discontinued at any time without prior notice.

During the three months ended March 31, 2015, the Company did not repurchase any shares common stock. During the three months ended March 31, 2014, the Company repurchased approximately 32,000 shares of common stock for $945, or an average price of $29.81 per share.

Cash Dividends

Holders of the Company’s common stock are entitled to receive dividends when they are declared by the Company’s Board of Directors. During the three months ended March 31, 2015, the Board of Directors authorized a cash dividend of $0.165 per share, which totaled $8,784. During the three months ended March 31, 2014, the Board of Directors authorized a cash dividend of $0.16 per share, which totaled $8,553.

On May 4, 2015, our Board of Directors declared a quarterly cash dividend of $0.17 per share to be paid on June 12, 2015 to shareholders of record as of June 1, 2015. Future dividend declarations, if any, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors.

19

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

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

The Company develops, manufactures, sells and services products that measure, control, power and monitor critical parameters of advanced manufacturing processes. The Company’s Chief Operating Decision Maker (“CODM”) utilizes consolidated financial information to make decisions about allocating resources and assessing performance for the entire Company. In addition, certain disaggregated financial information is also provided to the CODM, which is used in the decision making process to assess performance. Based upon the information provided to the CODM, the Company has determined it has four reportable segments.

Effective January 1, 2015, the Company changed the structure of its reportable segments based upon a change in the information that is provided to the Company’s CODM. The Company’s four reportable segments prior to the change in structure were: Advanced Manufacturing Capital Equipment, Analytical Solutions Group, Europe Region Sales & Service and Asia Region Sales & Service. The Company’s new structure still reflects four reportable segments; however, the composition of the segments has changed.

The Company’s new reportable segments are Advanced Manufacturing Capital Equipment, Global Service, Asia Region Sales and Other. The primary change to the segment structure was to separate worldwide service from product sales and create a separate reportable segment known as Global Service. Product sales in the Advanced Manufacturing Capital Equipment segment remained with this segment. Asia product sales became a separate reportable segment. The product sales from the operating segments that made up the Analytical Solutions Group and Europe Region sales were combined into the Other segment and are not reported separately as they are individually immaterial and collectively below the separate segment reporting guidelines. The Company has reported corporate expenses and certain intercompany pricing transactions in a Corporate and Eliminations reconciling column. Due to these changes, the results presented under segment reporting for the three months ended March 31, 2014 and as of December 31, 2014 reflect the new segments to conform to the current period segment reporting presentation with no impact to the consolidated results of operations.

The Advanced Manufacturing Capital Equipment segment includes the development, manufacturing and sales of instruments and control products, power and reactive gas products, materials delivery products and vacuum products, all of which are utilized in semiconductor processing and other similar advanced manufacturing processes. Sales in this segment include both external sales and intercompany product sales, which are recorded at transfer prices in accordance with applicable tax requirements.

The Global Service segment includes the worldwide servicing of instruments and control products, power and reactive gas products, materials delivery products and vacuum products, all of which are utilized in semiconductor processing and other similar advanced manufacturing processes. It also includes sales of custom fabrication services.

The Asia Region Sales segment mainly resells products from the Advanced Manufacturing Capital Equipment and Other segments into Asia regions.

The Other segment includes operating segments that are not required to be reported separately as a reportable segment and includes sales for products that are re-sold from the Advanced Manufacturing Capital Equipment into Europe regions as well as sales from other operating segments.

MKS derives the segment results directly from the manner in which results are reported in its management reporting system. The accounting policies MKS uses to derive reportable segment results are substantially the same as those used for external reporting purposes except that a substantial portion of the sales of the Advanced Manufacturing Capital Equipment and Other segments are intercompany sales to the regions at tax-based transfer prices and certain significant costs, including stock-based compensation and management incentive compensation, are not allocated to the segments and are included in Corporate and Eliminations. The CODM reviews several metrics of each operating segment, including net revenues and gross profit (loss).

The Company does not maintain balance sheets for the majority of its operating segments and, as such, amounts have not been allocated to the reportable segments. The Company does not disclose external or intersegment revenues separately by reportable segment as this information is not presented to the CODM for decision making purposes.

20

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

The following is net revenues by reportable segment:

	Three Months Ended March 31,
	2015			2014
Advanced Manufacturing Capital Equipment	$	179,233		$	165,498
Global Service		27,743			25,167
Asia Region Sales (1)		55,377			52,099
Other		21,216			20,893
Corporate and Eliminations		(69,730	)		(57,304	)
	$	213,839		$	206,353

The following is a reconciliation of segment gross profit to consolidated net income:

	Three Months Ended March 31,
	2015			2014
Gross profit by reportable segment:
Advanced Manufacturing Capital Equipment	$	78,688		$	67,107
Global Service		9,603			8,397
Asia Region Sales (1)		6,920			9,077
Other		6,843			6,747
Corporate and Eliminations		(5,008	)		(1,956	)
Total gross profit by reportable segment		97,046			89,372
Operating expenses:
Research and development		16,680			15,618
Selling, general and administrative		30,867			34,591
Acquisition costs		30			228
Restructuring		788			747
Amortization of intangible assets		1,671			410
Income from operations		47,010			37,778
Net interest income		504			235
Income before income taxes		47,514			38,013
Provision for income taxes		13,728			6,768
Net income	$	33,786		$	31,245

(1) The Asia Region Sales segment does not represent total geographical Asia financial information. This sales operation only represents the sales from the resale of Advanced Manufacturing Capital Equipment and Other segment products in their respective regions. The Advanced Manufacturing Capital Equipment and Other segments both have sales in this region. Accordingly, total geographical sales include sales from multiple reportable segments.

The following is capital expenditures by reportable segment for the three months ended March 31, 2015 and 2014:

	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2015:
Capital expenditures	$	1,522	$	122	$	42	$	74	$	744	$	2,504
	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2014:
Capital expenditures	$	2,574	$	170	$	41	$	75	$	238	$	3,098

21

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

The following is depreciation and amortization by reportable segment for the three months ended March 31, 2015 and 2014:

	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2015:
Depreciation and amortization	$	4,247	$	256	$	85	$	310	$	634	$	5,532
	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2014:
Depreciation and amortization	$	2,926	$	272	$	99	$	208	$	645	$	4,150

In connection with the new segment structure, goodwill was allocated to each reportable segment on a relative fair value basis. The Company performed an interim quantitative impairment test as of January 1, 2015 and concluded that the fair values of each reporting unit exceeded their respective carrying values.

Goodwill associated with each of our reportable segments is as follows:

	March 31, 2015			December 31, 2014
Reportable segment:
Advanced Manufacturing Capital Equipment	$	173,510		$	166,946
Global Service		19,728			19,728
Asia Region Sales		—			—
Other		6,228			6,228
Foreign currency translation		(136	)		(521	)
Total goodwill	$	199,330		$	192,381

Worldwide Product Information

Because the reportable segment information above does not reflect worldwide sales of the Company’s products, the Company groups its products into three groups of similar products based upon the similarity of product function. Worldwide net revenue for each group of products is as follows:

	Three Months Ended March 31,
	2015		2014
Instruments, Control and Vacuum Products	$	110,436	$	101,657
Power and Reactive Gas Products		88,499		90,602
Analytical Solutions Group Products		14,904		14,094
	$	213,839	$	206,353

Sales of Instruments, Control and Vacuum Products and Power and Reactive Gas Products are included in the Company’s Advanced Manufacturing Capital Equipment, Asia Region Sales, Global Service and Other segments because the products are sold through these segments. Sales of the Analytical Solutions Group products are included in the Asia Region Sales, Global Service and Other segments because the products are sold through these segments.

22

MKS INSTRUMENTS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

(in thousands, except share and per share data)

Geographic

Information about the Company’s operations in different geographic regions is presented in the tables below. Net revenues to unaffiliated customers are based on the location in which the sale originated. Transfers between geographic areas are at negotiated transfer prices and have been eliminated from consolidated net revenues.

	Three Months Ended March 31,
	2015		2014
Net revenues:
United States	$	120,181	$	117,377
Korea		32,072		27,591
Japan		17,256		16,928
Asia (excluding Korea and Japan)		23,683		24,902
Europe		20,647		19,555
	$	213,839	$	206,353
	March 31, 2015		December 31, 2014
Long-lived assets: (1)
United States	$	57,337	$	57,701
Europe		5,531		6,099
Asia		10,162		10,887
	$	73,030	$	74,687

(1) Long-lived assets include property, plant and equipment, net and certain other long-term assets, excluding long-term income tax receivable.

Major Customers

The Company had two customers with net revenues greater than 10% of total net revenues in the periods shown as follows:

	Three Months Ended March 31,
	2015			2014
Customer A		17.4	%		20.3	%
Customer B		12.1	%		13.1	%

17) Restructuring

The Company recorded restructuring charges of $788 during the three months ended March 31, 2015. The restructuring charges were primarily for severance associated with a reduction in workforce of approximately 120 people, primarily at one of the Company’s foreign manufacturing sites arising from the outsourcing of a non-core manufacturing process.

The activity related to the Company’s restructuring accrual is shown below:

	Three Months Ended March 31, 2015
Balance at December 31	$	92
Charged to expense		788
Payments		(348	)
Balance at March 31	$	532

18) Commitments and Contingencies

The Company is subject to various legal proceedings and claims, which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows.

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ITEM 2.         MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). When used herein, the words “believes,” “anticipates,” “plans,” “expects,” “estimates,” “would,” “will,” “intends” and similar expressions are intended to identify forward-looking statements. These forward-looking statements reflect management’s current opinions and are subject to certain risks and uncertainties that could cause results to differ materially from those stated or implied. While we may elect to update forward looking statements in the future, we specifically disclaim any obligation to do so even if our estimates or expectations change. Risks and uncertainties include, but are not limited to those discussed in our Annual Report on Form 10-K for the year ended December 31, 2014 in the section entitled “Risk Factors” as referenced in Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.

Overview

We are a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. We also provide services relating to the maintenance and repair of our products, software maintenance, installation services and training.

Our products are derived from our core competencies in pressure measurement and control, materials delivery, gas composition analysis, control and information technology, power and reactive gas generation and vacuum technology. Our products are used in diverse markets, applications and processes. Our primary served markets are manufacturers of capital equipment for semiconductor devices, and for other thin film applications including flat panel displays, solar cells and light emitting diodes (“LEDs”), data storage media and other advanced coatings. We also leverage our technology into other markets with advanced manufacturing applications including medical equipment, pharmaceutical manufacturing, energy generation and environmental monitoring.

We have a diverse base of customers that includes manufacturers of semiconductor capital equipment and semiconductor devices, thin film capital equipment used in the manufacture of flat panel displays, LEDs, solar cells, data storage media and other coating applications; and other industrial, medical, pharmaceutical manufacturing, energy generation, environmental monitoring and other advanced manufacturing companies, as well as university, government and industrial research laboratories. For the three months ended March 31, 2015 and 2014, approximately 71% and 73% of our net revenues, respectively, were from sales to semiconductor capital equipment manufacturers and semiconductor device manufacturers. We expect that sales to semiconductor capital equipment manufacturers and semiconductor device manufacturers will continue to account for a substantial portion of our sales.

Effective January 1, 2015, we changed the structure of our reportable segments based upon how the information is provided to our chief operating decision maker. Our four reportable segments prior to the change in structure were: Advanced Manufacturing Capital Equipment, Analytical Solutions Group, Europe Region Sales & Service and Asia Region Sales & Service. Our new structure still reflects four reportable segments however, the composition of the segments has changed.

Our new reportable segments are Advanced Manufacturing Capital Equipment, Global Service, Asia Region Sales and Other. The primary change to the segment structure was to separate worldwide service from product sales and create a separate reportable segment known as Global Service. Product sales in the Advanced Manufacturing Capital Equipment segment remained with this segment. Asia product sales became a separate reportable segment. The product sales from the operating segments that made up the Analytical Solutions Group and Europe Region Sales were combined into the Other segment and are not reported separately as they are individually immaterial and collectively below the separate segment guidelines. We report corporate expenses and certain intercompany pricing transactions in a Corporate and Eliminations reconciling column.

The Advanced Manufacturing Capital Equipment segment includes the development, manufacture and sales of instruments and control products, power and reactive gas products, materials delivery products and vacuum products, all of which are utilized in semiconductor processing and other similar advanced manufacturing processes. Sales in this segment include both external sales and intercompany product sales, which are recorded at transfer prices in accordance with applicable tax requirements.

Our Global Service segment includes the worldwide servicing of instruments and control products, power and reactive gas products, materials delivery products and vacuum products, all of which are utilized in semiconductor processing and other similar advanced manufacturing processes. It also includes sales of custom fabrication services.

The Asia Region Sales segment mainly resells products from the Advanced Manufacturing Capital Equipment and Other segments into Asia regions.

The Other segment includes operating segments that are not required to be reported separately as a reportable segment and includes sales for products that are re-sold from the Advanced Manufacturing Capital Equipment into Europe regions as well as sales from other operating segments.

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Net revenues from semiconductor capital equipment manufacture and semiconductor device manufacture customers increased by 1% for the three months ended March 31, 2015, compared to the same period in the prior year and increased by 7% for the three months ended March 31, 2015, compared to the three months ended December 31, 2014. The semiconductor capital equipment industry is subject to rapid demand shifts, which are difficult to predict, and we are uncertain as to the timing or extent of future demand or any future weakness in the semiconductor capital equipment industry.

Our net revenues sold to customers in other advanced markets, which exclude semiconductor capital equipment and semiconductor device product applications increased 12% for the three months ended March 31, 2015, compared to the same period in the prior year and increased 2% for the three months ended March 31, 2015, compared to the three months ended December 31, 2014. We have had six consecutive quarters of growth in our other advanced markets starting in the quarter ended December 31, 2013. Revenues from customers in other advanced markets are made up of many different markets, including general industrial, solar, film, medical, analysis metrology and other markets. The increase for the three months ended March 31, 2015, compared to the same period in the prior year, is primarily attributed to increases in the analysis metrology, data storage and solar markets.

A significant portion of our net revenues is from sales to customers in international markets. For the three months ended March 31, 2015 and 2014, international net revenues accounted for approximately 44% and 43% of our net revenues, respectively. A significant portion of our international net revenues were in Korea and Japan. We expect that international net revenues will continue to represent a significant percentage of our total net revenues.

On March 17, 2015, we acquired Precisive, LLC (“Precisive”) for $12.2 million, net of cash acquired of $0.4 million, subject to final working capital adjustments. Precisive is an innovative developer of optical analyzers based on Tunable Filter Spectroscopy (TFS), which provide real-time gas analysis in the natural gas and hydrocarbon processing industries, including refineries, hydrocarbon processing plants, gas-to-power machines, biogas processes and fuel gas transportation and metering, while delivering customers a lower total cost of ownership.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported. There have been no material changes in our critical accounting policies since December 31, 2014. For further information, please see the discussion of critical accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2014 in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates.”

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Results of Operations

The following table sets forth, for the periods indicated, the percentage of total net revenues of certain line items included in MKS’ consolidated statements of operations and comprehensive income data.

	Three Months Ended March 31,
	2015			2014
Net revenues:
Product		87.0	%		87.8	%
Services		13.0			12.2
Total net revenues		100.0			100.0
Cost of revenues:
Cost of product revenues		46.1			48.6
Cost of service revenues		8.5			8.1
Total cost of revenues (exclusive of amortization shown separately below)		54.6			56.7
Gross profit		45.4			43.3
Research and development		7.8			7.5
Selling, general and administrative		14.4			16.8
Acquisition costs		—			0.1
Restructuring		0.4			0.4
Amortization of intangible assets		0.8			0.2
Income from operations		22.0			18.3
Interest income, net		0.2			0.1
Income from operations before income taxes		22.2			18.4
Provision for income taxes		6.4			3.3
Net income		15.8	%		15.1	%

Net Revenues

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Product	$	186.1	$	181.2		2.7	%
Service		27.7		25.2		10.2
Total net revenues	$	213.8	$	206.4		3.6	%

Product revenues increased $4.9 million during the three months ended March 31, 2015, compared to the same period for the prior year. The increase was primarily attributed to product revenue increases in our other advanced markets including analysis metrology, data storage and solar markets, which increased by $3.4 million, $2.6 million and $2.2 million, respectively, for the three months ended March 31, 2015, compared to the same period for the prior year. These increases are partially offset by product revenue decreases in our general and industrial and flat panel display markets of $2.2 million and $1.8 million, respectively.

Service revenues consisted mainly of fees for services relating to the maintenance and repair of our products and software services, installation and training. Service revenues increased $2.5 million during the three months ended March 31, 2015, compared to the same period in the prior year. The increase for the three months ended March 31, 2015, compared to the same period in the prior year, is primarily attributed to increases in our semiconductor and medical markets of $1.6 million and $0.7 million, respectively.

Total international net revenues, including product and services, was $93.7 million for the three months ended March 31, 2015, or 43.8% of net revenues, compared to $89.0 million for the three months ended March 31, 2014, or 43.1% of net revenues. The increase for the three months ended March 31, 2015, compared to the same period in the prior year, related mainly to an increase in net revenues in Korea and Taiwan, where we sell primarily into the semiconductor markets.

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The following is our net revenues by reportable segment (dollars in millions):

	Three Months Ended March 31,
	2015			2014			% Change
Net revenues:
Advanced Manufacturing Capital Equipment	$	179.2		$	165.5			8.3	%
Global Service		27.7			25.2			10.2
Asia Region Sales		55.4			52.1			6.3
Other		21.2			20.9			1.5
Corporate and Eliminations		(69.7	)		(57.3	)		(21.7	)
Total net revenues	$	213.8		$	206.4			3.6	%

Net revenue increases in our Advanced Manufacturing Capital Equipment and Asia Region Sales segment of 8.3% and 6.3%, respectively, for the three months ended March 31, 2015, compared to the same period in the prior year, were primarily driven by sales into our other advanced markets, primarily analysis metrology, data storage and solar markets.

Net revenues for our Other segment remained relatively flat for the three months ended March 31, 2015, compared to the same period in the prior year.

Gross Profit

	Three Months Ended March 31,
	2015			2014			% Points Change
Gross profit as a percentage of net revenues:
Product		47.0	%		44.7	%		2.3
Service		34.7			33.4	%		1.3
Total gross profit percentage		45.4	%		43.3	%		2.1

Gross profit on product revenues increased by 2.3 percentage points for the three months ended March 31, 2015, compared to the same period in the prior year. The increase is primarily due to an increase of 1.2 percentage points due to favorable product mix and 0.8 percentage points due to higher revenue volume.

Cost of service revenues, which includes salaries and related expenses and other fixed costs, consists primarily of providing services for repair, software services and training. Gross profit on service revenues increased by 1.3 percentage points for the three months ended March 31, 2015, compared to the same period in the prior year. The increase is primarily attributed to an increase of 2.4 percentage points due to favorable product mix, partially offset by a decrease of 1.4 percentage points due to unfavorable changes in foreign exchange rates.

The following is gross profit as a percentage of net revenues by reportable segment:

	Three Months Ended March 31,
	2015			2014			% Points Change
Gross profit:
Advanced Manufacturing Capital Equipment		43.9	%		40.5	%		3.4
Global Service		34.7			33.4			1.3
Asia Region Sales		12.5			17.4			(4.9	)
Other		32.3			32.3			—
Corporate and Eliminations		7.2			3.4			3.8
Total gross profit		45.4	%		43.3	%		2.1	%

Gross profit for the Advanced Manufacturing Capital Equipment segment increased 3.4 percentage points for the three months ended March 31, 2015, compared to the same period in the prior year. This increase is primarily attributed to favorable product mix and increased revenue.

Gross profit for the Asia Region Sales segment decreased 4.9 percentage points for the three months ended March 31, 2015, compared to the same period in the prior year. This decrease is primarily attributed to unfavorable changes in foreign exchange rates, partially offset by favorable product mix.

Gross profit for the Other segment remained flat for the three months ended March 31, 2015, compared to the same period in the prior year.

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Research and Development

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Research and development expenses	$	16.7	$	15.6		6.8	%

Research and development expenses increased $1.1 million for the three months ended March 31, 2015, compared to the same period in the prior year. The increase is primarily attributed to an increase of $0.5 million for project materials and $0.2 million in compensation related expenses.

Our research and development efforts are primarily focused on developing and improving our instruments, components, subsystems and process control solutions to improve process performance and productivity.

We have thousands of products and our research and development efforts primarily consist of a large number of projects related to these products, none of which is individually material to us. Current projects typically have durations of 3 to 30 months depending upon whether the product is an enhancement of existing technology or a new product. Our current initiatives include projects to enhance the performance characteristics of older products, to develop new products and to integrate various technologies into subsystems. These projects support in large part, the transition in the semiconductor industry to smaller integrated circuit geometries and in the flat panel display and solar markets to larger substrate sizes, which require more advanced process control technology. Research and development expenses consist primarily of salaries and related expenses for personnel engaged in research and development, fees paid to consultants, material costs for prototypes and other expenses related to the design, development, testing and enhancement of our products.

We believe that the continued investment in research and development and ongoing development of new products are essential to the expansion of our markets, and we expect to continue to make significant investment in research and development activities. We are subject to risks if products are not developed in a timely manner, due to rapidly changing customer requirements and competitive threats from other companies and technologies. Our success primarily depends on our products being designed into new generations of equipment for the semiconductor industry and other advanced technology markets. We develop products that are technologically advanced so that they are positioned to be chosen for use in each successive generation of semiconductor capital equipment. If our products are not chosen to be designed into our customers’ products, our net revenues may be reduced during the lifespan of those products.

Selling, General and Administrative

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Selling, general and administrative expenses	$	30.9	$	34.6		(10.8	)%

Selling, general and administrative expenses decreased by $3.7 million in the three months ended March 31, 2015, compared to the same period in the prior year. The decrease is primarily attributed to a $1.1 million decrease in consulting and professional fees, a $1.1 million favorable impact of changes in foreign exchange rates, a $0.5 million decrease in compensation related expenses, a $0.3 million decrease in information technology related expenses and a $0.3 million decrease in bad debt expense.

Acquisition Costs

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Acquisition costs	$	—	$	0.2		(86.9	)%

We incurred $30 thousand of acquisition costs in the three months ended March 31, 2015, which was comprised primarily of legal fees related to the Precisive acquisition that was completed on March 17, 2015. We incurred $0.2 million of acquisition costs in the three months ended March 31, 2014, comprising of legal and filing fees related to our acquisition of the Granville-Phillips division of Brooks Automation, Inc., which closed during the second quarter of 2014.

Restructuring

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Restructuring	$	0.8	$	0.7		5.5	%

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The three months ended March 31, 2015 includes restructuring charges primarily related to severance costs associated with a reduction in workforce of approximately 120 people, primarily at one of our foreign manufacturing sites as we outsourced a non-core manufacturing process. The three months ended March 31, 2014 includes restructuring charges primarily related to severance costs associated with a reduction in workforce of approximately 65 people throughout the Company.

Amortization of Intangible Assets

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Amortization of intangible assets	$	1.7	$	0.4		307.8	%

Amortization expense increased by $1.3 million for the three months ended March 31, 2015, compared to the same period in the prior year. The increase is primarily attributed to increases in amortization expense from the intangible assets acquired through our Granville-Phillips acquisition that was completed in May 2014.

Interest Income, Net

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Interest income, net	$	0.5	$	0.2		113.8	%

Interest income, increased by $0.3 million for the three months ended March 31, 2015, compared to the same period in the prior year. The increase is attributed to a change in the mix of our investment portfolio.

Provision for Income Taxes

	Three Months Ended March 31,
(dollars in millions)	2015		2014		% Change
Provision for income taxes	$	13.7	$	6.8		102.8	%

Our effective tax rate for the three months ended March 31, 2015 and 2014 was 28.9% and 17.8%, respectively. The effective tax rate for the three months ended March 31, 2015 was lower than the U.S. statutory tax rate due to the impact of lower tax rates on profits earned by our international subsidiaries and the impact of the deduction for domestic production activities. The effective tax rate for the three months ended March 31, 2014 was lower than the U.S. statutory tax rate due to the discrete release of income tax reserves related to the effective settlement of a foreign tax examination and the impact of lower tax rates on profits earned by our foreign subsidiaries .

Our future effective tax rate depends on various factors, including the impact of tax legislation, the geographic composition of our pre-tax income, and changes in tax reserves for unrecognized tax benefits. We monitor these factors and timely adjust our estimates of the effective tax rate accordingly. We expect that the geographic mix of pre-tax income will continue to have a favorable impact on our effective tax rate, however the geographic mix of pre-tax income can change based on multiple factors resulting in changes to the effective tax rate in future periods.

Additionally, the effective tax rate could be adversely affected by changes in the valuation of deferred tax assets and liabilities. In particular, the carrying value of deferred tax assets, which are predominantly in the United States, is dependent on our ability to generate sufficient future taxable income in the United States. We have a deferred tax asset of $20.7 million related to a capital loss carryforward for which a full valuation allowance has been recorded. This capital loss expires at December 31, 2015 and it is expected that we will write-off this asset against the valuation allowance in the fourth quarter. We expect no impact to our effective tax rate from this adjustment.

While we believe we have adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from our accrued positions as a result of uncertain and complex application of tax law and regulations. We and our subsidiaries are subject to examination by federal, state and foreign tax authorities. The Internal Revenue Service commenced an examination of our U.S. federal tax filings for open tax years 2011 through 2013 during the three months ended March 31, 2015. Additionally, the recognition and measurement of certain tax benefits include estimates and judgment by management. Accordingly, we could record additional provisions or benefits for U.S. federal, state, and foreign taxes matters in future periods as new information becomes available.

Liquidity and Capital Resources

Cash and cash equivalents and short-term investments totaled $351.3 million at March 31, 2015, compared to $435.0 million at December 31, 2014.

Net cash provided by operating activities was $19.6 million for the three months ended March 31, 2015 and resulted mainly from net income of $33.8 million, which included non-cash charges of $12.0 million offset by increases in working capital of $25.6 million. The net

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increase in working capital was primarily due to an increase in trade accounts receivable of $19.0 million, an increase in inventories of $12.8 million, an increase in other current assets of $5.0 million and a decrease in accrued compensation of $4.9 million. These increases in working capital were offset by a decrease in other assets of $7.8 million, an increase in accounts payable of $3.6 million, an increase in other current and non-current liabilities of $2.7 million and an increase in net income taxes of $2.0 million.

Net cash provided by operating activities was $9.9 million for the three months ended March 31, 2014 and resulted mainly from net income of $31.2 million, which included non-cash charges of $6.1 million and changes in working capital of $27.1 million. The increase in working capital was primarily due to an increase in inventories of $7.4 million and an increase in trade accounts receivable of $2.8 million, due to increased business levels, a decrease in accrued compensation of $6.9 million, a decrease in income taxes of $5.5 million and a decrease in accounts payable of $4.7 million, primarily due to timing of payments, offset by an increase in other current liabilities of $2.5 million.

Net cash used in investing activities of $121.1 million for the three months ended March 31, 2015 resulted primarily from $108.7 million of net purchases of short-term and long-term investments, $9.9 million of net cash primarily used for the acquisition of Precisive and $2.5 million in purchases of production related equipment. Net cash used in investing activities of $2.0 million for the three months ended March 31, 2014 resulted primarily from $3.1 million in purchases of production related equipment, partially offset by $1.0 million in net sales and maturities of short-term and long-term investments.

Net cash used in financing activities was $10.4 million for the three months ended March 31, 2015 and consisted primarily of $8.8 million of dividend payments made to common stockholders and $2.1 million of net payments related to tax payments for employee stock awards. Net cash used in financing activities was $10.1 million for the three months ended March 31, 2014 and consisted primarily of $8.6 million of dividend payments made to common stockholders, $0.9 million related to the repurchase of common stock and $0.8 million of net payments related to tax payments for employee stock awards.

Our Japanese subsidiary has lines of credit and short-term borrowing arrangements with two financial institutions which generally expire and are renewed at three month intervals. The lines of credit provide for aggregate borrowings as of March 31, 2015 of up to an equivalent of $19.2 million U.S. dollars. One of the borrowing arrangements has an interest rate based on the Tokyo Interbank Offer Rate at the time of borrowing and the other has an interest rate based on the Japanese Short-term Prime Lending Rate. There were no borrowings outstanding under these arrangements at March 31, 2015 and December 31, 2014.

On July 25, 2011, our Board of Directors approved a share repurchase program for the repurchase of up to an aggregate of $200 million of our outstanding common stock from time to time in open market purchases, privately negotiated transactions or through other appropriate means. The timing and quantity of any shares repurchased depends upon a variety of factors, including business conditions, stock market conditions and business development activities, including but not limited to merger and acquisition opportunities. These repurchases may be commenced, suspended or discontinued at any time without prior notice.

During the three months ended March 31, 2015, we did not repurchase any shares of common stock. During the three months ended March 31, 2014, we repurchased approximately 32,000 shares of our common stock for $0.9 million at an average price of $29.81 per share.

During the three months ended March 31, 2015, our Board of Directors declared a quarterly dividend of $0.165 that totaled $8.8 million. During the three months ended March 31, 2014, our Board of Directors declared a quarterly dividend of $0.16 per share that totaled $8.6 million.

On May 4, 2015, the Board of Directors declared a quarterly cash dividend of $0.17 per share to be paid on June 12, 2015 to stockholders of record as of June 1, 2015. Future dividend declarations, if any, as well as the record and payment dates for such dividends, are subject to the final determination of our Board of Directors.

Our total cash and cash equivalents and short-term marketable investments at March 31 2015 consisted of $172.7 million held in the U.S. and $178.6 million held by our foreign subsidiaries, substantially all of which would be subject to tax in the United States if returned to the United States. We believe our existing United States cash and short-term investment balances are adequate to meet domestic operating needs, including estimated working capital, planned capital expenditure requirements and any future cash dividends, if declared, during the next twelve months and the foreseeable future.

As previously noted, we completed the acquisition of Precisive on March 17, 2015, for approximately $12.2 million, net of cash acquired of $0.4 million subject to final working capital adjustments. The purchase price includes a deferred payment amount of $2,600 to cover any potential indemnification claims, which amount will be paid to the sellers after 15 months assuming there are no indemnification claims.

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Off-Balance Sheet Arrangements

We do not have any financial partnerships with unconsolidated entities, such as entities often referred to as structured finance, special purpose entities or variable interest entities, which are often established for the purpose of facilitating off-balance sheet arrangements or for other contractually narrow or limited purposes. Accordingly, we have no off-balance sheet arrangements that have or are reasonably expected to have a current or future effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods and services to customers in an amount that reflects the consideration that the company expects to be entitled to in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and assets recognized from costs incurred to obtain or fulfill a contract. This pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in March 2015 the FASB proposed a one-year deferral. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. We have not yet selected a transition method. We are currently evaluating the requirements of ASU No. 2014-09 and have not yet determined its impact on our consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Under this ASU, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on our financial statements or disclosures.

ITEM 3.         QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Information concerning market risk is contained in the section entitled “Quantitative and Qualitative Disclosures About Market Risk” contained in our Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission on February 25, 2015. As of March 31 2015, there were no material changes in our exposure to market risk from December 31, 2014.

ITEM 4.         CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2015. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of March 31, 2015, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer as appropriate to allow timely decisions regarding required disclosure.

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Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended March 31, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1.         LEGAL PROCEEDINGS.

We are subject to various legal proceedings and claims, which have arisen in the ordinary course of business.

In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our results of operations, financial condition or cash flows.

ITEM 1A.         RISK FACTORS.

Information regarding risk factors affecting the Company’s business are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 in the section entitled “Risk Factors.” There have been no material changes from the risks disclosed therein.

ITEM 6.         EXHIBITS.

Exhibit No.	Exhibit Description
+3.1(1)	Restated Articles of Organization of the Registrant
+3.2(2)	Articles of Amendment to Articles of Organization, as filed with the Secretary of State of Massachusetts on May 18, 2001
+3.3(3)	Articles of Amendment to Articles of Organization, as filed with the Secretary of State of Massachusetts on May 16, 2002
+3.4(4)	Amended and Restated By-Laws of the Registrant
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Labels Linkbase Document.
101.PRE	XBRL Taxonomy Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

+ Previously filed

(1) Incorporated by reference to the Registration Statement on Form S-4 (File No. 333-49738) filed with the Securities and Exchange Commission on November 13, 2000.

(2) Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2001.

(3) Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002.

(4) Incorporated by reference to the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2014.

32

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		MKS INSTRUMENTS, INC.
May 6, 2015	By:	/s/ Seth H. Bagshaw
		Seth H. Bagshaw
		Vice President, Chief Financial Officer and Treasurer
		(Principal Financial Officer)

33

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a)/RULE 15d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Gerald G. Colella, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MKS Instruments, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2015	/s/ Gerald G. Colella
	Gerald G. Colella
	Chief Executive Officer and President
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a)/RULE 15d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Seth H. Bagshaw, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MKS Instruments, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2015	/s/ Seth H. Bagshaw
	Seth H. Bagshaw
	Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of MKS Instruments, Inc. (the “Company”) for the period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Gerald G. Colella, Chief Executive Officer and President of the Company, and Seth H. Bagshaw, Vice President, Chief Financial Officer and Treasurer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on his knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 6, 2015	/s/ Gerald G. Colella
	Gerald G. Colella
	Chief Executive Officer and President
Dated: May 6, 2015	/s/ Seth H. Bagshaw
	Seth H. Bagshaw
	Vice President, Chief Financial Officer and Treasurer

XML

Investments - Fair Value of Long-Term Available-for-Sale Investments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Fair value of long-term available-for-sale investments	$ 237,313	$ 157,201
Time Deposits And Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of long-term available-for-sale investments		48
Asset Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of long-term available-for-sale investments	129,242	75,674
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of long-term available-for-sale investments	90,114	64,669
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of long-term available-for-sale investments	1,880	1,254
U.S. Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of long-term available-for-sale investments	$ 16,077	$ 15,556

XML

Acquisitions - Allocation of Acquired Intangible Assets and Related Estimates of Useful Lives (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	0 Months Ended
	Mar. 31, 2015	Mar. 17, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price	$ 5,110
Precisive, LLC [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price		5,110
Order Backlog [Member] | Precisive, LLC [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price		50
Estimated useful life of finite-lived intangible assets		18 months
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price	1,430
Customer Relationships [Member] | Precisive, LLC [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price		1,430
Estimated useful life of finite-lived intangible assets		12 years
Exclusive Patent License [Member] | Precisive, LLC [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price		2,600
Estimated useful life of finite-lived intangible assets		10 years
Trade names [Member] | Precisive, LLC [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price		210
Estimated useful life of finite-lived intangible assets		10 years
Current Developed Technology [Member] | Precisive, LLC [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, purchase price		$ 820
Estimated useful life of finite-lived intangible assets		10 years

XML

Derivatives - Summary of Gains (Losses) on Derivatives Designated as Hedging Instruments (Detail) (Forward Exchange Contracts [Member], Cash Flow Hedging [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Forward Exchange Contracts [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net (loss) recognized in OCI	$ (2,090)	$ (334)
Net gain (loss) reclassified from OCI into income	$ 1,193	$ (94)

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Net Revenues by Reportable Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Total net revenues	$ 213,839	$ 206,353
Operating Segments [Member] | Advanced Manufacturing Capital Equipment [Member]
Segment Reporting Information [Line Items]
Total net revenues	179,233	165,498
Operating Segments [Member] | Global Service [Member]
Segment Reporting Information [Line Items]
Total net revenues	27,743	25,167
Operating Segments [Member] | Asia Region Sales [Member]
Segment Reporting Information [Line Items]
Total net revenues	55,377	52,099
Operating Segments [Member] | Other [Member]
Segment Reporting Information [Line Items]
Total net revenues	21,216	20,893
Corporate and Eliminations [Member]
Segment Reporting Information [Line Items]
Total net revenues	$ (69,730)	$ (57,304)

XML

Goodwill and Intangible Assets - Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Beginning balance, Goodwill Gross Carrying Amount	$ 331,795	$ 290,323
Acquired goodwill, Gross Carrying Amount	7,085	41,993
Foreign currency translation, Gross Carrying Amount	(136)	(521)
Ending balance, Goodwill Gross Carrying Amount	338,744	331,795
Beginning balance, Accumulated Impairment (Loss)	(139,414)	(139,414)
Acquired goodwill, Accumulated Impairment (Loss)	0	0
Foreign currency translation, Accumulated Impairment (Loss)	0	0
Ending balance, Accumulated Impairment (Loss)	(139,414)	(139,414)
Beginning balance, Goodwill Net	192,381	150,909
Acquired goodwill, Net	7,085	41,993
Foreign currency translation, Net	(136)	(521)
Ending balance, Goodwill Net	$ 199,330	$ 192,381

XML

Restructuring - Schedule of Company's Restructuring Activity (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Restructuring and Related Activities [Abstract]
Balance at December 31	$ 92
Charged to expense	788	747
Payments	(348)
Balance at March 31	$ 532

XML

Derivatives - Summary of Fair Value Amounts of Company's Derivative Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Forward exchange contracts, assets	$ 1,240	$ 1,966
Forward exchange contracts, liabilities	(318)
Total net derivative asset designated as hedging instruments	922	1,966
Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Forward exchange contracts, assets	1,240	1,966
Forward exchange contracts, liabilities	(318)
Total net derivative asset designated as hedging instruments	$ 922	$ 1,966

XML

Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities

	March 31, 2015		December 31, 2014
Other Current Liabilities:
Product warranties	$	6,064	$	6,266
Deferred revenue		5,997		8,283
Other		26,452		21,240
Total other current liabilities	$	38,513	$	35,789
Other Liabilities:
Long-term income tax payable	$	20,337	$	20,203
Accrued compensation		12,312		12,068
Other		8,406		6,324
Total other liabilities	$	41,055	$	38,595

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Goodwill Associated with Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Goodwill	$ 199,330	$ 192,381	$ 150,909
Operating Segments [Member] | Advanced Manufacturing Capital Equipment [Member]
Segment Reporting Information [Line Items]
Goodwill	173,510	166,946
Operating Segments [Member] | Global Service [Member]
Segment Reporting Information [Line Items]
Goodwill	19,728	19,728
Operating Segments [Member] | Other [Member]
Segment Reporting Information [Line Items]
Goodwill	6,228	6,228
Foreign Currency Translation [Member] | Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Goodwill	$ (136)	$ (521)

XML

Goodwill and Intangible Assets - Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	$ 168,847	$ 163,737
Accumulated Amortization	(119,470)	(117,799)
Foreign Currency Translation	176	451
Intangible assets, net	49,553	46,389
Completed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	101,200	100,380
Accumulated Amortization	(80,477)	(79,875)
Foreign Currency Translation	(78)	135
Intangible assets, net	20,645	20,640
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	37,251	35,821
Accumulated Amortization	(13,610)	(12,634)
Foreign Currency Translation	228	280
Intangible assets, net	23,869	23,467
Patents, Trademarks, Trade Names and Other [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	30,396	27,536
Accumulated Amortization	(25,383)	(25,290)
Foreign Currency Translation	26	36
Intangible assets, net	$ 5,039	$ 2,282

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Customers with Net Revenues Greater than 10% of Total Net Revenues (Detail) (Customer Concentration Risk [Member], Sales Revenue, Net [Member])	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Customer A [Member]
Revenue, Major Customer [Line Items]
Percentage of total net revenues	17.40%	20.30%
Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of total net revenues	12.10%	13.10%

XML

Restructuring - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 People	Mar. 31, 2014
Reorganizations [Abstract]
Restructuring charges	$ 788	$ 747
Approximate number of workforce reduction from the company's headcount	120

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Reconciliation of Segment Gross Profit to Consolidated Net Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Gross profit	$ 97,046	$ 89,372
Research and development	16,680	15,618
Selling, general and administrative	30,867	34,591
Acquisition costs	30	228
Restructuring	788	747
Amortization of intangible assets	1,671	410
Income from operations	47,010	37,778
Net interest income	504	235
Income before income taxes	47,514	38,013
Provision for income taxes	13,728	6,768
Net income	33,786	31,245
Operating Segments [Member] | Advanced Manufacturing Capital Equipment [Member]
Segment Reporting Information [Line Items]
Gross profit	78,688	67,107
Operating Segments [Member] | Global Service [Member]
Segment Reporting Information [Line Items]
Gross profit	9,603	8,397
Operating Segments [Member] | Asia Region Sales [Member]
Segment Reporting Information [Line Items]
Gross profit	6,920	9,077
Operating Segments [Member] | Other [Member]
Segment Reporting Information [Line Items]
Gross profit	6,843	6,747
Corporate and Eliminations [Member]
Segment Reporting Information [Line Items]
Gross profit	$ (5,008)	$ (1,956)

XML

Recently Issued Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods and services to customers in an amount that reflects the consideration that the company expects to be entitled to in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and assets recognized from costs incurred to obtain or fulfill a contract. This pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in March 2015, the FASB proposed a one-year deferral. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has not yet selected a transition method. The Company is currently evaluating the requirements of ASU No. 2014-09 and has not yet determined its impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Under this ASU, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on the Company’s financial statements or disclosures.

XML

Inventories - Summary of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 85,622	$ 81,121
Work-in-process	27,374	26,604
Finished goods	51,416	47,444
Inventories	$ 164,412	$ 155,169

XML

Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives - currency forward contracts	$ 1,240	$ 1,966
Derivatives - currency forward contracts	318
Cash and cash equivalents	95,212	167,517
Short-term investments	158,631	129,594
Other current assets	1,240	1,966
Long-term investments	237,313	157,201
Other current liabilities	318
Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives - currency forward contracts	1,240	2,110
Total assets	485,073	418,828
Derivatives - currency forward contracts	318
Cash and cash equivalents	87,889	129,923
Short-term investments	158,631	129,594
Other current assets	1,240	2,110
Total current assets	247,760	261,627
Long-term investments	237,313	157,201
Other current liabilities	318
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	87,790	129,092
Cash and cash equivalents	87,790	129,092
Total current assets	87,790	129,092
Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives - currency forward contracts	1,240	2,110
Total assets	397,283	289,736
Derivatives - currency forward contracts	318
Cash and cash equivalents	99	831
Short-term investments	158,631	129,594
Other current assets	1,240	2,110
Total current assets	159,970	132,535
Long-term investments	237,313	157,201
Other current liabilities	318
Money Market Funds [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	87,790	129,092
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	87,790	129,092
Bankers Acceptance Drafts [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	99	131
Available-for-sale securities\investments	327	82
Bankers Acceptance Drafts [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	99	131
Available-for-sale securities\investments	327	82
Time Deposits And Certificates of Deposit [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	5,400	20,948
Time Deposits And Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	5,400	20,948
Commercial Paper [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	1,447
Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	1,447
Asset Backed Securities [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	129,242	75,674
Asset Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	129,242	75,674
Corporate Obligations [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		700
Available-for-sale securities\investments	148,445	88,689
Corporate Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		700
Available-for-sale securities\investments	148,445	88,689
Municipal Bonds [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	7,678	3,353
Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	7,678	3,353
U.S. Agency Obligations [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	103,405	98,049
U.S. Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities\investments	$ 103,405	$ 98,049

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Schedule of Net Revenues and Long-Lived Assets by Geographic Regions (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 213,839	$ 206,353
Long-lived assets	73,030		74,687
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	120,181	117,377
Long-lived assets	57,337		57,701
Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	32,072	27,591
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	17,256	16,928
Asia (Excluding Korea and Japan) [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	23,683	24,902
Long-lived assets	10,162		10,887
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	20,647	19,555
Long-lived assets	$ 5,531		$ 6,099

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Schedule of Company's Restructuring Activity

The activity related to the Company’s restructuring accrual is shown below:

	Three Months Ended March 31, 2015
Balance at December 31	$	92
Charged to expense		788
Payments		(348	)
Balance at March 31	$	532

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Acquisitions - Summary of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	0 Months Ended
	Mar. 31, 2015	Mar. 17, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 199,330		$ 192,381	$ 150,909
Total purchase price, net of cash acquired of $435	9,867
Precisive, LLC [Member]
Business Acquisition [Line Items]
Current assets		285
Non-current assets		18
Intangible assets		5,110
Goodwill	7,085	7,085
Total assets acquired		12,498
Total current liabilities assumed		343
Total purchase price, net of cash acquired of $435		$ 12,155

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Net Income Per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Stock options and restricted stock units outstanding	760,000
Number of shares excluded from computation of diluted earnings per share	0	1,400

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Other Assets - Schedule of Other Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Other Current Assets:
Income tax receivable	$ 161	$ 10,322
Other	21,419	17,190
Total other current assets	21,580	27,512
Other Assets:
Deferred tax assets, net	6,868	7,202
Long-term income tax receivable	8,175	8,092
Other	2,122	1,912
Total other assets	$ 17,165	$ 17,206

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Derivatives - Summary of Fair Value Amounts of Company's Derivative Instruments (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative asset classified in other current assets	$ 1,240	$ 1,966
Derivative liability classified in other current liabilities	$ 318

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Investments

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

3) Investments

The fair value of short-term investments with maturities or estimated lives of less than one year consists of the following:

	March 31, 2015		December 31, 2014
Available-for-sale investments:
Time deposits and certificates of deposit	$	5,400	$	20,900
Bankers’ acceptance drafts		327		82
Commercial paper		1,447		—
Corporate obligations		58,331		24,020
Municipal bonds		5,798		2,099
U.S. agency obligations		87,328		82,493
	$	158,631	$	129,594

The fair value of long-term investments with maturities of more than one year consists of the following:

	March 31, 2015		December 31, 2014
Available-for-sale investments:
Time deposits and certificates of deposit	$	—	$	48
Asset-backed securities		129,242		75,674
Corporate obligations		90,114		64,669
Municipal bonds		1,880		1,254
U.S. agency obligations		16,077		15,556
	$	237,313	$	157,201

The following tables show the gross unrealized gains and (losses) aggregated by investment category for short-term and long-term available-for-sale investments:

As of March 31, 2015:	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Short-term investments:
Time deposits and certificates of deposit	$	5,400	$	—	$	—		$	5,400
Bankers’ acceptance drafts		327		—		—			327
Commercial paper		1,447		—		—			1,447
Corporate obligations		58,336		10		(15	)		58,331
Municipal bonds		5,800		1		(3	)		5,798
U.S. agency obligations		87,311		23		(6	)		87,328
	$	158,621	$	34	$	(24	)	$	158,631
Long-term investments:
Asset-backed securities		129,209	$	66	$	(33	)	$	129,242
Corporate obligations		90,128		44		(58	)		90,114
Municipal bonds		1,878		3		(1	)		1,880
U.S. agency obligations		16,070		8		(1	)		16,077
	$	237,285	$	121	$	(93	)	$	237,313
As of December 31, 2014:	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Short-term investments:
Time deposits and certificates of deposit	$	20,901	$	—	$	(1	)	$	20,900
Bankers’ acceptance drafts		82		—		—			82
Corporate obligations		24,029		2		(11	)		24,020
Municipal bonds		2,100		—		(1	)		2,099
U.S. agency obligations		82,488		14		(9	)		82,493
	$	129,600	$	16	$	(22	)	$	129,594
Long-term investments:
Time deposits and certificates of deposit	$	48	$	—	$	—		$	48
Asset-backed securities		75,778		5		(109	)		75,674
Corporate obligations		64,842		1		(174	)		64,669
Municipal bonds		1,258		—		(4	)		1,254
U.S. agency obligations		15,563		2		(9	)		15,556
	$	157,489	$	8	$	(296	)	$	157,201

Interest income is accrued as earned. Dividend income is recognized as income on the date the stock trades “ex-dividend.” The cost of marketable securities sold is determined by the specific identification method. Realized gains or (losses) are reflected in income and were immaterial for the three months ended March 31, 2015 and 2014.

In accordance with the Company’s investment policy, no security shall have a maturity or average life longer than three years. The average duration of the portfolio shall be no more than one year. Corporate securities must have ratings of A3/A- or better. Asset-backed securities must be rated AAA. Short-term ratings of A-2/P2/F2 or higher are also permitted. With respect to compliance with these investment guidelines, the rating agencies include Moody’s Investor Service, Standard & Poor’s and Fitch Investor Service. The middle of Moody’s, Standard & Poor’s and Fitch rating shall be used to determine compliance with credit quality guidelines. If a security is rated by two rating agencies, the lower rating will apply. If only one rating exists, that rating shall be used.

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Other Liabilities - Schedule of Other Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Other Current Liabilities:
Product warranties	$ 6,064	$ 6,266	$ 7,013	$ 6,956
Deferred revenue	5,997	8,283
Other	26,452	21,240
Total other current liabilities	38,513	35,789
Other Liabilities:
Long-term income tax payable	20,337	20,203
Accrued compensation	12,312	12,068
Other	8,406	6,324
Total other liabilities	$ 41,055	$ 38,595

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Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Not included in cash and cash equivalent amount	$ 95,212	$ 167,517
Non Negotiable Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Not included in cash and cash equivalent amount	$ 9,612	$ 7,997

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Inventories (Tables)

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consist of the following:

	March 31, 2015		December 31, 2014
Raw materials	$	85,622	$	81,121
Work-in-process		27,374		26,604
Finished goods		51,416		47,444
	$	164,412	$	155,169

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Primary Net Hedging Positions and Corresponding Fair Values

The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of March 31, 2015 and December 31, 2014:

	March 31, 2015
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value(1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	29,708	$	478
U.S. Dollar/South Korean Won		32,692		133
U.S. Dollar/Euro		5,009		286
U.S. Dollar/U.K. Pound Sterling		3,794		74
U.S. Dollar/Taiwan Dollar		12,860		(49	)
Total	$	84,063	$	922

(1) Represents the fair value of the net asset / (liability) amount included in the consolidated balance sheets.

	December 31, 2014
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value (1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	8,035	$	1,107
U.S. Dollar/South Korean Won		12,512		372
U.S. Dollar/Euro		2,060		185
U.S. Dollar/U.K. Pound Sterling		1,308		70
U.S. Dollar/Taiwan Dollar		4,735		232
Total	$	28,650	$	1,966

(1) Represents the fair value of the net asset / (liability) amount included in the consolidated balance sheets.

Summary of Fair Value Amounts of Company's Derivative Instruments

The following table provides a summary of the fair value amounts of the Company’s derivative instruments:

	March 31, 2015			December 31, 2014
Derivative assets:
Forward exchange contracts	$	1,240		$	1,966
Derivative liabilities:
Forward exchange contracts		(318	)		—
Total net derivative asset designated as hedging instruments(1)	$	922		$	1,966

(1) The derivative asset of $1,240 and derivative liability of $318 are classified in other current assets and other current liabilities in the consolidated balance sheet as of March 31, 2015. The derivative asset of $1,966 is classified in other current assets in the consolidated balance sheet as of December 31, 2014. These foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet.

Summary of Gains (Losses) on Derivatives Designated as Hedging Instruments

The following table provides a summary of the gains (losses) on derivatives designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Designated as Cash Flow Hedging Relationships	2015			2014
Forward exchange contracts:
Net (loss) recognized in OCI(1)	$	(2,090	)	$	(334	)
Net gain (loss) reclassified from accumulated OCI into income(2)	$	1,193		$	(94	)

(1) Net change in the fair value of the effective portion classified in OCI.

(2) Effective portion classified in cost of products for the three months ended March 31, 2015 and 2014.

Summary of Gains on Derivatives Not Designated as Hedging Instruments

The following table provides a summary of gains on derivatives not designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Not Designated as Hedging Instruments	2015		2014
Forward exchange contracts:
Net gain recognized in income(1)	$	98	$	106

(1) The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries. These derivatives are not designated as hedging instruments and are recorded immediately in selling, general and administrative expenses.

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Goodwill and Intangible Assets - Goodwill (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 17, 2015	Jun. 30, 2014
Goodwill [Line Items]
Goodwill		$ 199,330	$ 192,381	$ 150,909
Precisive, LLC [Member]
Goodwill [Line Items]
Goodwill		7,085			7,085
Granville-Phillips [Member]
Goodwill [Line Items]
Goodwill						41,612
Alter S.r.l [Member]
Goodwill [Line Items]
Acquisition purchase price	$ 381

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Derivatives - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Maximum period for hedging a portion of forecasted foreign currency denominated intercompany sales of inventory	18 months
Gross notional values of outstanding forward foreign exchange contracts	$ 84,063	$ 28,650
Accumulated other comprehensive income realization period	12 months

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Acquisitions (Tables) (Precisive, LLC [Member])

3 Months Ended

Mar. 31, 2015

Precisive, LLC [Member]

Summary of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	285
Non-current assets		18
Intangible assets		5,110
Goodwill		7,085
Total assets acquired		12,498
Total current liabilities assumed		343
Total purchase price, net of cash acquired of $435	$	12,155

Allocation of Acquired Intangible Assets and Related Estimates of Useful Lives

The entire purchase price is expected to be deductible for tax purposes. The following table reflects the allocation of the acquired intangible assets and related estimates of useful lives. These acquired intangibles will be amortized on a straight-line basis, which approximates the pattern of use.

Order backlog	$	50	18 months
Customer relationships		1,430	12 years
Exclusive patent license		2,600	10 years
Trade names		210	10 years
Current developed technology		820	10 years
	$	5,110

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill and accumulated impairment (loss) during the three months ended March 31, 2015 and year ended December 31, 2014 were as follows:

	2015									2014
	Gross Carrying Amount			Accumulated Impairment (Loss)			Net			Gross Carrying Amount			Accumulated Impairment (Loss)			Net
Beginning balance at January 1	$	331,795		$	(139,414	)	$	192,381		$	290,323		$	(139,414	)	$	150,909
Acquired goodwill (1)		7,085			—			7,085			41,993			—			41,993
Foreign currency translation		(136	)		—			(136	)		(521	)		—			(521	)
Ending balance at March 31, 2015 and December 31, 2014	$	338,744		$	(139,414	)	$	199,330		$	331,795		$	(139,414	)	$	192,381

(1) During the first quarter of 2015, the Company recorded $7,085 of goodwill related to the Precisive acquisition. During the second quarter of 2014, the Company recorded $41,612 of goodwill related to the May 30, 2014 acquisition of the Granville-Phillips division of Brooks Automation, Inc. During the first quarter of 2014, the Company recorded a purchase accounting adjustment of $381 related to the March 12, 2013 purchase of Alter S.r.l.

Intangible Assets

Components of the Company’s intangible assets are comprised of the following:

As of March 31, 2015:	Gross		Accumulated Amortization			Foreign Currency Translation			Net
Completed technology (1)	$	101,200	$	(80,477	)	$	(78	)	$	20,645
Customer relationships (1)		37,251		(13,610	)		228			23,869
Patents, trademarks, trade names and other (1)		30,396		(25,383	)		26			5,039
	$	168,847	$	(119,470	)	$	176		$	49,553

(1) During the three months ended March 31, 2015, the Company recorded $5,110 of separately identified intangible assets of which $820 was completed technology, $1,430 was customer relationships and $2,860 was trademarks, trade names and other, related to the Precisive acquisition.

As of December 31, 2014:	Gross		Accumulated Amortization			Foreign Currency Translation		Net
Completed technology (2)	$	100,380	$	(79,875	)	$	135	$	20,640
Customer relationships (2)		35,821		(12,634	)		280		23,467
Patents, trademarks, trade names and other (2)		27,536		(25,290	)		36		2,282
	$	163,737	$	(117,799	)	$	451	$	46,389

(2) During 2014, the Company recorded $38,850 of separately identified intangible assets related to the May 30, 2014 acquisition of the Granville-Phillips division of Brooks Automation, Inc., of which $15,700 was completed technology, $21,250 was customer relationships and $1,900 was trademarks and trade names.

Estimated Amortization Expense

Aggregate amortization expense related to acquired intangibles for the three months ended March 31, 2015 and 2014 was $1,671 and $410, respectively. Estimated amortization expense for each of the remaining fiscal years is as follows:

Year	Amount
2015 (remaining)	$	5,106
2016		6,701
2017		6,628
2018		6,613
2019		6,582
2020		6,514
Thereafter		11,409

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Recently Issued Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

2) Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods and services to customers in an amount that reflects the consideration that the company expects to be entitled to in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and assets recognized from costs incurred to obtain or fulfill a contract. This pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in March 2015, the FASB proposed a one-year deferral. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has not yet selected a transition method. The Company is currently evaluating the requirements of ASU No. 2014-09 and has not yet determined its impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Under this ASU, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on the Company’s financial statements or disclosures.

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

	March 31, 2015		December 31, 2014
Other Current Assets:
Income tax receivable	$	161	$	10,322
Other		21,419		17,190
Total other current assets	$	21,580	$	27,512
Other Assets:
Deferred tax assets, net	$	6,868	$	7,202
Long-term income tax receivable		8,175		8,092
Other		2,122		1,912
Total other assets	$	17,165	$	17,206

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Investments - Gross Unrealized Gains and (Losses) Aggregated by Investment Category Short-Term and Long-Term Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	$ 237,285	$ 157,489
Investments, Gross Unrealized Gains	121	8
Investments, Gross Unrealized (Losses)	(93)	(296)
Short-term investments, Estimated Fair Value	158,631	129,594
Long-term investments, Estimated Fair Value	237,313	157,201
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	90,128	64,842
Investments, Gross Unrealized Gains	44	1
Investments, Gross Unrealized (Losses)	(58)	(174)
U.S. Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	16,070	15,563
Investments, Gross Unrealized Gains	8	2
Investments, Gross Unrealized (Losses)	(1)	(9)
Asset Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	129,209	75,778
Investments, Gross Unrealized Gains	66	5
Investments, Gross Unrealized (Losses)	(33)	(109)
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	1,878	1,258
Investments, Gross Unrealized Gains	3
Investments, Gross Unrealized (Losses)	(1)	(4)
Time Deposits And Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	5,400	20,901
Investments, Gross Unrealized (Losses)		(1)
Short-term investments, Estimated Fair Value	5,400	20,900
Long-term investments, Estimated Fair Value		48
Bankers Acceptance Drafts [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	327	82
Short-term investments, Estimated Fair Value	327	82
Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	1,447
Short-term investments, Estimated Fair Value	1,447
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term investments, Estimated Fair Value	58,331	24,020
Long-term investments, Estimated Fair Value	90,114	64,669
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term investments, Estimated Fair Value	5,798	2,099
U.S. Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term investments, Estimated Fair Value	87,328	82,493
Long-term investments, Estimated Fair Value	16,077	15,556
Asset Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Long-term investments, Estimated Fair Value	129,242	75,674
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Long-term investments, Estimated Fair Value	1,880	1,254
Short-Term [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	158,621	129,600
Investments, Gross Unrealized Gains	34	16
Investments, Gross Unrealized (Losses)	(24)	(22)
Short-Term [Member] | Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	58,336	24,029
Investments, Gross Unrealized Gains	10	2
Investments, Gross Unrealized (Losses)	(15)	(11)
Short-Term [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	5,800	2,100
Investments, Gross Unrealized Gains	1
Investments, Gross Unrealized (Losses)	(3)	(1)
Short-Term [Member] | U.S. Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost	87,311	82,488
Investments, Gross Unrealized Gains	23	14
Investments, Gross Unrealized (Losses)	(6)	(9)
Time Deposits [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Cost		$ 48

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Acquisitions - Summary of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (Precisive, LLC [Member], USD $) In Thousands, unless otherwise specified	0 Months Ended
	Mar. 17, 2015
Precisive, LLC [Member]
Business Acquisition [Line Items]
Business acquisition, cash acquired	$ 435

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Business Segment, Geographic Area, Product and Significant Customer Information - Schedule of Capital Expenditures, Depreciation and Amortization Expense by Reportable Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Capital expenditures	$ 2,504	$ 3,098
Depreciation and amortization	5,532	4,150
Operating Segments [Member] | Advanced Manufacturing Capital Equipment [Member]
Segment Reporting Information [Line Items]
Capital expenditures	1,522	2,574
Depreciation and amortization	4,247	2,926
Operating Segments [Member] | Global Service [Member]
Segment Reporting Information [Line Items]
Capital expenditures	122	170
Depreciation and amortization	256	272
Operating Segments [Member] | Asia Region Sales [Member]
Segment Reporting Information [Line Items]
Capital expenditures	42	41
Depreciation and amortization	85	99
Operating Segments [Member] | Other [Member]
Segment Reporting Information [Line Items]
Capital expenditures	74	75
Depreciation and amortization	310	208
Corporate and Eliminations [Member]
Segment Reporting Information [Line Items]
Capital expenditures	744	238
Depreciation and amortization	$ 634	$ 645

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 192,713	$ 305,437
Short-term investments	158,631	129,594
Trade accounts receivable, net	124,445	106,362
Inventories, net	164,412	155,169
Deferred income taxes	13,560	14,017
Other current assets	21,580	27,512
Total current assets	675,341	738,091
Property, plant and equipment, net	70,908	72,776
Long-term investments	237,313	157,201
Goodwill	199,330	192,381
Intangible assets, net	49,553	46,389
Other assets	17,165	17,206
Total assets	1,249,610	1,224,044
Current liabilities:
Accounts payable	37,549	34,166
Accrued compensation	21,349	26,970
Income taxes payable	6,455	6,702
Other current liabilities	38,513	35,789
Total current liabilities	103,866	103,627
Other liabilities	41,055	38,595
Commitments and contingencies (Note 18)
Stockholders' equity:
Preferred Stock, $0.01 par value per share, 2,000,000 shares authorized; none issued and outstanding
Common Stock, no par value, 200,000,000 shares authorized; 53,289,953 and 53,154,666 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	113	113
Additional paid-in capital	736,290	734,732
Retained earnings	374,063	349,061
Accumulated other comprehensive loss	(5,777)	(2,084)
Total stockholders' equity	1,104,689	1,081,822
Total liabilities and stockholders' equity	$ 1,249,610	$ 1,224,044

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Derivatives - Summary of Primary Net Hedging Positions and Corresponding Fair Values (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Currency Hedged (Buy/Sell), Gross Notional Value, Net	$ 84,063	$ 28,650
Currency Hedged (Buy/Sell), Fair Value, Asset/(Liability), Net	922	1,966
Forward Exchange Contracts [Member] | U.S. Dollar/Japanese Yen [Member]
Derivative [Line Items]
Currency Hedged (Buy/Sell), Gross Notional Value, Net	29,708	8,035
Currency Hedged (Buy/Sell), Fair Value, Asset/(Liability), Net	478	1,107
Forward Exchange Contracts [Member] | U.S. Dollar/South Korean Won [Member]
Derivative [Line Items]
Currency Hedged (Buy/Sell), Gross Notional Value, Net	32,692	12,512
Currency Hedged (Buy/Sell), Fair Value, Asset/(Liability), Net	133	372
Forward Exchange Contracts [Member] | U.S. Dollar/Euro [Member]
Derivative [Line Items]
Currency Hedged (Buy/Sell), Gross Notional Value, Net	5,009	2,060
Currency Hedged (Buy/Sell), Fair Value, Asset/(Liability), Net	286	185
Forward Exchange Contracts [Member] | U.S. Dollar/U.K. Pound Sterling [Member]
Derivative [Line Items]
Currency Hedged (Buy/Sell), Gross Notional Value, Net	3,794	1,308
Currency Hedged (Buy/Sell), Fair Value, Asset/(Liability), Net	74	70
Forward Exchange Contracts [Member] | U.S. Dollar/Taiwan Dollar [Member]
Derivative [Line Items]
Currency Hedged (Buy/Sell), Gross Notional Value, Net	12,860	4,735
Currency Hedged (Buy/Sell), Fair Value, Asset/(Liability), Net	$ (49)	$ 232

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 33,786	$ 31,245
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,532	4,150
Stock-based compensation	3,212	3,198
Provision for excess and obsolete inventory	2,683	2,613
Provision for bad debt	(172)	94
Deferred income taxes	736	(3,974)
Excess tax benefits from stock-based compensation	(524)	(189)
Other	1	(141)
Changes in operating assets and liabilities:
Trade accounts receivable	(19,030)	(2,784)
Inventories	(12,817)	(7,402)
Income taxes	2,034	(5,462)
Other current assets	(5,029)	(1,286)
Accrued compensation	(4,930)	(6,872)
Other current and non-current liabilities	2,735	2,512
Accounts payable	3,587	(4,656)
Other assets	7,801	(1,143)
Net cash provided by operating activities	19,605	9,903
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(9,867)
Purchases of investments	(164,327)	(128,524)
Maturities of investments	38,205	104,623
Sales of investments	17,414	24,948
Purchases of property, plant and equipment	(2,504)	(3,098)
Other	5	79
Net cash used in investing activities	(121,074)	(1,972)
Cash flows from financing activities:
Repurchase of common stock		(945)
Net payments related to employee stock awards	(2,105)	(762)
Dividend payments to common stockholders	(8,784)	(8,553)
Excess tax benefits from stock-based compensation	524	189
Net cash used in financing activities	(10,365)	(10,071)
Effect of exchange rate changes on cash and cash equivalents	(890)	328
Decrease in cash and cash equivalents	(112,724)	(1,812)
Cash and cash equivalents at beginning of period	305,437	288,902
Cash and cash equivalents at end of period	$ 192,713	$ 287,090

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate amortization expense related to acquired intangibles	$ 1,671	$ 410

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Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended March 31,
	2015		2014
Numerator:
Net income	$	33,786	$	31,245
Denominator:
Shares used in net income per common share – basic		53,214,000		53,411,000
Effect of dilutive securities:
Stock options, restricted stock and employee stock purchase plan		315,000		365,000
Shares used in net income per common share – diluted		53,529,000		53,776,000
Net income per common share:
Basic	$	0.63	$	0.58
Diluted	$	0.63	$	0.58

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Income Taxes [Line Items]
Effective tax rate	28.90%	17.80%
Gross unrecognized tax benefits excluding interest and penalties	$ 19,508		$ 19,610
Net unrecognized tax benefit excluding interest and penalties that would impact effective tax rate	11,524
Accrued interest on unrecognized tax benefits	$ 638		$ 578
Income tax examination, description	The Company and its subsidiaries are subject to examination by federal, state and foreign tax authorities. The Internal Revenue Service commenced an examination of the Company's U.S. federal tax filings for tax years 2011 through 2013 during the quarter ended March 31, 2015.
Earliest Tax Year [Member]
Income Taxes [Line Items]
Income tax examination period	2011
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member]
Income Taxes [Line Items]
Open tax year	2011
Latest Tax Year [Member]
Income Taxes [Line Items]
Income tax examination period	2013

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Business Segment, Geographic Area, Product and Significant Customer Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segment, Geographic Area, Product and Significant Customer Information

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

The Company develops, manufactures, sells and services products that measure, control, power and monitor critical parameters of advanced manufacturing processes. The Company’s Chief Operating Decision Maker (“CODM”) utilizes consolidated financial information to make decisions about allocating resources and assessing performance for the entire Company. In addition, certain disaggregated financial information is also provided to the CODM, which is used in the decision making process to assess performance. Based upon the information provided to the CODM, the Company has determined it has four reportable segments.

Effective January 1, 2015, the Company changed the structure of its reportable segments based upon a change in the information that is provided to the Company’s CODM. The Company’s four reportable segments prior to the change in structure were: Advanced Manufacturing Capital Equipment, Analytical Solutions Group, Europe Region Sales & Service and Asia Region Sales & Service. The Company’s new structure still reflects four reportable segments; however, the composition of the segments has changed.

The Company’s new reportable segments are Advanced Manufacturing Capital Equipment, Global Service, Asia Region Sales and Other. The primary change to the segment structure was to separate worldwide service from product sales and create a separate reportable segment known as Global Service. Product sales in the Advanced Manufacturing Capital Equipment segment remained with this segment. Asia product sales became a separate reportable segment. The product sales from the operating segments that made up the Analytical Solutions Group and Europe Region sales were combined into the Other segment and are not reported separately as they are individually immaterial and collectively below the separate segment reporting guidelines. The Company has reported corporate expenses and certain intercompany pricing transactions in a Corporate and Eliminations reconciling column. Due to these changes, the results presented under segment reporting for the three months ended March 31, 2014 and as of December 31, 2014 reflect the new segments to conform to the current period segment reporting presentation with no impact to the consolidated results of operations.

The Advanced Manufacturing Capital Equipment segment includes the development, manufacturing and sales of instruments and control products, power and reactive gas products, materials delivery products and vacuum products, all of which are utilized in semiconductor processing and other similar advanced manufacturing processes. Sales in this segment include both external sales and intercompany product sales, which are recorded at transfer prices in accordance with applicable tax requirements.

The Global Service segment includes the worldwide servicing of instruments and control products, power and reactive gas products, materials delivery products and vacuum products, all of which are utilized in semiconductor processing and other similar advanced manufacturing processes. It also includes sales of custom fabrication services.

The Asia Region Sales segment mainly resells products from the Advanced Manufacturing Capital Equipment and Other segments into Asia regions.

The Other segment includes operating segments that are not required to be reported separately as a reportable segment and includes sales for products that are re-sold from the Advanced Manufacturing Capital Equipment into Europe regions as well as sales from other operating segments.

MKS derives the segment results directly from the manner in which results are reported in its management reporting system. The accounting policies MKS uses to derive reportable segment results are substantially the same as those used for external reporting purposes except that a substantial portion of the sales of the Advanced Manufacturing Capital Equipment and Other segments are intercompany sales to the regions at tax-based transfer prices and certain significant costs, including stock-based compensation and management incentive compensation, are not allocated to the segments and are included in Corporate and Eliminations. The CODM reviews several metrics of each operating segment, including net revenues and gross profit (loss).

The Company does not maintain balance sheets for the majority of its operating segments and, as such, amounts have not been allocated to the reportable segments. The Company does not disclose external or intersegment revenues separately by reportable segment as this information is not presented to the CODM for decision making purposes.

The following is net revenues by reportable segment:

	Three Months Ended March 31,
	2015			2014
Advanced Manufacturing Capital Equipment	$	179,233		$	165,498
Global Service		27,743			25,167
Asia Region Sales (1)		55,377			52,099
Other		21,216			20,893
Corporate and Eliminations		(69,730	)		(57,304	)
	$	213,839		$	206,353

The following is a reconciliation of segment gross profit to consolidated net income:

	Three Months Ended March 31,
	2015			2014
Gross profit by reportable segment:
Advanced Manufacturing Capital Equipment	$	78,688		$	67,107
Global Service		9,603			8,397
Asia Region Sales (1)		6,920			9,077
Other		6,843			6,747
Corporate and Eliminations		(5,008	)		(1,956	)
Total gross profit by reportable segment		97,046			89,372
Operating expenses:
Research and development		16,680			15,618
Selling, general and administrative		30,867			34,591
Acquisition costs		30			228
Restructuring		788			747
Amortization of intangible assets		1,671			410
Income from operations		47,010			37,778
Net interest income		504			235
Income before income taxes		47,514			38,013
Provision for income taxes		13,728			6,768
Net income	$	33,786		$	31,245

(1) The Asia Region Sales segment does not represent total geographical Asia financial information. This sales operation only represents the sales from the resale of Advanced Manufacturing Capital Equipment and Other segment products in their respective regions. The Advanced Manufacturing Capital Equipment and Other segments both have sales in this region. Accordingly, total geographical sales include sales from multiple reportable segments.

The following is capital expenditures by reportable segment for the three months ended March 31, 2015 and 2014:

	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2015:
Capital expenditures	$	1,522	$	122	$	42	$	74	$	744	$	2,504
	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2014:
Capital expenditures	$	2,574	$	170	$	41	$	75	$	238	$	3,098

The following is depreciation and amortization by reportable segment for the three months ended March 31, 2015 and 2014:

	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2015:
Depreciation and amortization	$	4,247	$	256	$	85	$	310	$	634	$	5,532
	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2014:
Depreciation and amortization	$	2,926	$	272	$	99	$	208	$	645	$	4,150

In connection with the new segment structure, goodwill was allocated to each reportable segment on a relative fair value basis. The Company performed an interim quantitative impairment test as of January 1, 2015 and concluded that the fair values of each reporting unit exceeded their respective carrying values.

Goodwill associated with each of our reportable segments is as follows:

	March 31, 2015			December 31, 2014
Reportable segment:
Advanced Manufacturing Capital Equipment	$	173,510		$	166,946
Global Service		19,728			19,728
Asia Region Sales		—			—
Other		6,228			6,228
Foreign currency translation		(136	)		(521	)
Total goodwill	$	199,330		$	192,381

Worldwide Product Information

Because the reportable segment information above does not reflect worldwide sales of the Company’s products, the Company groups its products into three groups of similar products based upon the similarity of product function. Worldwide net revenue for each group of products is as follows:

	Three Months Ended March 31,
	2015		2014
Instruments, Control and Vacuum Products	$	110,436	$	101,657
Power and Reactive Gas Products		88,499		90,602
Analytical Solutions Group Products		14,904		14,094
	$	213,839	$	206,353

Sales of Instruments, Control and Vacuum Products and Power and Reactive Gas Products are included in the Company’s Advanced Manufacturing Capital Equipment, Asia Region Sales, Global Service and Other segments because the products are sold through these segments. Sales of the Analytical Solutions Group products are included in the Asia Region Sales, Global Service and Other segments because the products are sold through these segments.

Geographic

Information about the Company’s operations in different geographic regions is presented in the tables below. Net revenues to unaffiliated customers are based on the location in which the sale originated. Transfers between geographic areas are at negotiated transfer prices and have been eliminated from consolidated net revenues.

	Three Months Ended March 31,
	2015		2014
Net revenues:
United States	$	120,181	$	117,377
Korea		32,072		27,591
Japan		17,256		16,928
Asia (excluding Korea and Japan)		23,683		24,902
Europe		20,647		19,555
	$	213,839	$	206,353
	March 31, 2015		December 31, 2014
Long-lived assets: (1)
United States	$	57,337	$	57,701
Europe		5,531		6,099
Asia		10,162		10,887
	$	73,030	$	74,687

(1) Long-lived assets include property, plant and equipment, net and certain other long-term assets, excluding long-term income tax receivable.

Major Customers

The Company had two customers with net revenues greater than 10% of total net revenues in the periods shown as follows:

	Three Months Ended March 31,
	2015			2014
Customer A		17.4	%		20.3	%
Customer B		12.1	%		13.1	%

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

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Net Revenues by Reportable Segment

The following is net revenues by reportable segment:

	Three Months Ended March 31,
	2015			2014
Advanced Manufacturing Capital Equipment	$	179,233		$	165,498
Global Service		27,743			25,167
Asia Region Sales (1)		55,377			52,099
Other		21,216			20,893
Corporate and Eliminations		(69,730	)		(57,304	)
	$	213,839		$	206,353

Reconciliation of Segment Gross Profit to Consolidated Net Income

The following is a reconciliation of segment gross profit to consolidated net income:

	Three Months Ended March 31,
	2015			2014
Gross profit by reportable segment:
Advanced Manufacturing Capital Equipment	$	78,688		$	67,107
Global Service		9,603			8,397
Asia Region Sales (1)		6,920			9,077
Other		6,843			6,747
Corporate and Eliminations		(5,008	)		(1,956	)
Total gross profit by reportable segment		97,046			89,372
Operating expenses:
Research and development		16,680			15,618
Selling, general and administrative		30,867			34,591
Acquisition costs		30			228
Restructuring		788			747
Amortization of intangible assets		1,671			410
Income from operations		47,010			37,778
Net interest income		504			235
Income before income taxes		47,514			38,013
Provision for income taxes		13,728			6,768
Net income	$	33,786		$	31,245

(1) The Asia Region Sales segment does not represent total geographical Asia financial information. This sales operation only represents the sales from the resale of Advanced Manufacturing Capital Equipment and Other segment products in their respective regions. The Advanced Manufacturing Capital Equipment and Other segments both have sales in this region. Accordingly, total geographical sales include sales from multiple reportable segments.

Schedule of Capital Expenditures, Depreciation and Amortization Expense by Reportable Segment

The following is capital expenditures by reportable segment for the three months ended March 31, 2015 and 2014:

	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2015:
Capital expenditures	$	1,522	$	122	$	42	$	74	$	744	$	2,504
	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2014:
Capital expenditures	$	2,574	$	170	$	41	$	75	$	238	$	3,098

The following is depreciation and amortization by reportable segment for the three months ended March 31, 2015 and 2014:

	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2015:
Depreciation and amortization	$	4,247	$	256	$	85	$	310	$	634	$	5,532
	Advanced Manufacturing Capital Equipment		Global Service		Asia Region Sales		Other		Corporate and Eliminations		Total
Three Months Ended March 31, 2014:
Depreciation and amortization	$	2,926	$	272	$	99	$	208	$	645	$	4,150

Summary of Goodwill Associated with Reportable Segments

Goodwill associated with each of our reportable segments is as follows:

	March 31, 2015			December 31, 2014
Reportable segment:
Advanced Manufacturing Capital Equipment	$	173,510		$	166,946
Global Service		19,728			19,728
Asia Region Sales		—			—
Other		6,228			6,228
Foreign currency translation		(136	)		(521	)
Total goodwill	$	199,330		$	192,381

Worldwide Net Revenue for Each Group of Products

Worldwide net revenue for each group of products is as follows:

	Three Months Ended March 31,
	2015		2014
Instruments, Control and Vacuum Products	$	110,436	$	101,657
Power and Reactive Gas Products		88,499		90,602
Analytical Solutions Group Products		14,904		14,094
	$	213,839	$	206,353

Schedule of Net Revenues and Long-Lived Assets by Geographic Regions

Transfers between geographic areas are at negotiated transfer prices and have been eliminated from consolidated net revenues.

	Three Months Ended March 31,
	2015		2014
Net revenues:
United States	$	120,181	$	117,377
Korea		32,072		27,591
Japan		17,256		16,928
Asia (excluding Korea and Japan)		23,683		24,902
Europe		20,647		19,555
	$	213,839	$	206,353
	March 31, 2015		December 31, 2014
Long-lived assets: (1)
United States	$	57,337	$	57,701
Europe		5,531		6,099
Asia		10,162		10,887
	$	73,030	$	74,687

(1) Long-lived assets include property, plant and equipment, net and certain other long-term assets, excluding long-term income tax receivable.

Customers with Net Revenues Greater than 10% of Total Net Revenues

The Company had two customers with net revenues greater than 10% of total net revenues in the periods shown as follows:

	Three Months Ended March 31,
	2015			2014
Customer A		17.4	%		20.3	%
Customer B		12.1	%		13.1	%

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

18) Commitments and Contingencies

The Company is subject to various legal proceedings and claims, which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows.

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Stockholder's Equity - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	May 04, 2015	Jul. 25, 2011
Stockholders Equity [Line Items]
Common stock, value of shares authorized to repurchase				$ 200,000,000
Stock repurchase, shares	0	32,000
Value of shares repurchased		945,000
Average price of repurchased shares		$ 29.81
Cash dividends per common share	$ 0.165	$ 0.160
Dividend payment to common shareholders	$ 8,784,000	$ 8,553,000
Subsequent Event [Member]
Stockholders Equity [Line Items]
Dividend declared date			May 04, 2015
Cash dividend to be paid			$ 0.17
Dividend to be paid date			Jun. 12, 2015
Dividend declared, shareholders of record date			Jun. 01, 2015

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

1) Basis of Presentation

The terms “MKS” and the “Company” refer to MKS Instruments, Inc. and its subsidiaries. The interim financial data as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 are unaudited; however, in the opinion of MKS, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The consolidated balance sheet presented as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date. The unaudited consolidated financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the MKS Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission on February 25, 2015.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, stock-based compensation, inventory, intangible assets, goodwill and other long-lived assets, acquisition expenses, income taxes and investments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0	$ 0
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	53,289,953	53,154,666
Common Stock, shares outstanding	53,289,953	53,154,666

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Debt

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Debt

11) Debt

The Company’s Japanese subsidiary has lines of credit and short-term borrowing arrangements with two financial institutions which generally expire and are renewed at three month intervals. The lines of credit provided for aggregate borrowings as of March 31, 2015 of up to an equivalent of $19,155 U.S. dollars. One of the borrowing arrangements has an interest rate based on the Tokyo Interbank Offer Rate at the time of borrowing and the other has an interest rate based on the Japanese Short-term Prime Lending Rate. There were no borrowings outstanding under these arrangements at March 31, 2015 and December 31, 2014.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 29, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	MKSI
Entity Registrant Name	MKS INSTRUMENTS INC
Entity Central Index Key	0001049502
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,371,635

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Product Warranties

3 Months Ended

Mar. 31, 2015

Guarantees [Abstract]

Product Warranties

12) Product Warranties

The Company provides for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by shipment volume, product failure rates, utilization levels, material usage, and supplier warranties on parts delivered to the Company. Should actual product failure rates, utilization levels, material usage, or supplier warranties on parts differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The product warranty liability is included in other current liabilities in the consolidated balance sheets.

Product warranty activities were as follows:

	Three Months Ended March 31,
	2015			2014
Beginning of period	$	6,266		$	6,956
Provision for product warranties		1,109			704
Direct charges to warranty liability		(1,244	)		(656	)
Foreign currency translation		(67	)		9
End of period	$	6,064		$	7,013

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Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Net revenues:
Products	$ 186,096		$ 181,186
Services	27,743		25,167
Total net revenues	213,839		206,353
Cost of revenues:
Cost of products	98,652		100,211
Cost of services	18,141		16,770
Total cost of revenues (exclusive of amortization shown separately below)	116,793		116,981
Gross profit	97,046		89,372
Research and development	16,680		15,618
Selling, general and administrative	30,867		34,591
Acquisition costs	30		228
Restructuring	788		747
Amortization of intangible assets	1,671		410
Income from operations	47,010		37,778
Interest income	541		252
Interest expense	37		17
Income before income taxes	47,514		38,013
Provision for income taxes	13,728		6,768
Net income	33,786		31,245
Other comprehensive income:
Changes in value of financial instruments designated as cash flow hedges, net of tax benefit	(822)	[1]	(163)	[1]
Foreign currency translation adjustments, net of tax of $0	(3,206)		21
Unrealized gain on investments, net of tax expense	334	[2]	36	[2]
Total comprehensive income	$ 30,092		$ 31,139
Net income per share:
Basic	$ 0.63		$ 0.58
Diluted	$ 0.63		$ 0.58
Cash dividends per common share	$ 0.165		$ 0.160
Weighted average common shares outstanding:
Basic	53,214		53,411
Diluted	53,529		53,776

[1] Tax benefit was $133 and $108 for the three months ended March 31, 2015 and 2014, respectively.

[2] Tax expense was $54 and $24 for the three months ended March 31, 2015 and 2014, respectively.

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Inventories

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventories

6) Inventories

Inventories consist of the following:

	March 31, 2015		December 31, 2014
Raw materials	$	85,622	$	81,121
Work-in-process		27,374		26,604
Finished goods		51,416		47,444
	$	164,412	$	155,169

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Derivatives

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

5) Derivatives

The Company enters into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments and those utilized as economic hedges. The Company operates internationally and, in the normal course of business, is exposed to fluctuations in interest rates and foreign exchange rates. These fluctuations can increase the costs of financing, investing and operating the business. The Company has used derivative instruments, such as forward contracts, to manage certain foreign currency exposure.

By nature, all financial instruments involve market and credit risks. The Company enters into derivative instruments with major investment grade financial institutions and no collateral is required. The Company has policies to monitor the credit risk of these counterparties. While there can be no assurance, the Company does not anticipate any material non-performance by any of these counterparties.

The Company hedges a portion of its forecasted foreign currency denominated intercompany sales of inventory, over a maximum period of eighteen months, using forward foreign exchange contracts accounted for as cash-flow hedges related to Japanese, South Korean, British, Euro and Taiwanese currencies. To the extent these derivatives are effective in off-setting the variability of the hedged cash flows, and otherwise meet the hedge accounting criteria, changes in the derivatives’ fair value are not included in current earnings but are included in other comprehensive income (loss) (“OCI”) in stockholders’ equity. These changes in fair value will subsequently be reclassified into earnings, as applicable, when the forecasted transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. The cash flows resulting from forward exchange contracts are classified in the consolidated statements of cash flows as part of cash flows from operating activities. The Company does not enter into derivative instruments for trading or speculative purposes.

To the extent the hedge accounting criteria is not met, the related foreign currency forward contracts are considered as economic hedges and changes in the fair value of these contracts are recorded immediately in earnings in the period in which they occur. These include hedges that are used to reduce exchange rate risks arising from the change in fair value of certain foreign currency denominated assets and liabilities (i.e., payables, receivables) and other economic hedges where the hedge accounting criteria were not met.

As of March 31, 2015 and December 31, 2014, the Company had outstanding forward foreign exchange contracts with gross notional values of $84,063 and $28,650, respectively. The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of March 31, 2015 and December 31, 2014:

	March 31, 2015
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value(1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	29,708	$	478
U.S. Dollar/South Korean Won		32,692		133
U.S. Dollar/Euro		5,009		286
U.S. Dollar/U.K. Pound Sterling		3,794		74
U.S. Dollar/Taiwan Dollar		12,860		(49	)
Total	$	84,063	$	922

(1) Represents the fair value of the net asset / (liability) amount included in the consolidated balance sheets.

	December 31, 2014
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value (1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	8,035	$	1,107
U.S. Dollar/South Korean Won		12,512		372
U.S. Dollar/Euro		2,060		185
U.S. Dollar/U.K. Pound Sterling		1,308		70
U.S. Dollar/Taiwan Dollar		4,735		232
Total	$	28,650	$	1,966

(1) Represents the fair value of the net asset / (liability) amount included in the consolidated balance sheets.

The following table provides a summary of the fair value amounts of the Company’s derivative instruments:

	March 31, 2015			December 31, 2014
Derivative assets:
Forward exchange contracts	$	1,240		$	1,966
Derivative liabilities:
Forward exchange contracts		(318	)		—
Total net derivative asset designated as hedging instruments(1)	$	922		$	1,966

(1) The derivative asset of $1,240 and derivative liability of $318 are classified in other current assets and other current liabilities in the consolidated balance sheet as of March 31, 2015. The derivative asset of $1,966 is classified in other current assets in the consolidated balance sheet as of December 31, 2014. These foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet.

The net amount of existing gains or losses as of March 31, 2015 that is expected to be reclassified from accumulated OCI into earnings within the next twelve months is immaterial.

The following table provides a summary of the gains (losses) on derivatives designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Designated as Cash Flow Hedging Relationships	2015			2014
Forward exchange contracts:
Net (loss) recognized in OCI(1)	$	(2,090	)	$	(334	)
Net gain (loss) reclassified from accumulated OCI into income(2)	$	1,193		$	(94	)

(1) Net change in the fair value of the effective portion classified in OCI.

(2) Effective portion classified in cost of products for the three months ended March 31, 2015 and 2014. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial.

The following table provides a summary of gains on derivatives not designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Not Designated as Hedging Instruments	2015		2014
Forward exchange contracts:
Net gain recognized in income(1)	$	98	$	106

(1) The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries. These derivatives are not designated as hedging instruments and are recorded immediately in selling, general and administrative expenses.

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Restructuring

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring

17) Restructuring

The Company recorded restructuring charges of $788 during the three months ended March 31, 2015. The restructuring charges were primarily for severance associated with a reduction in workforce of approximately 120 people, primarily at one of the Company’s foreign manufacturing sites arising from the outsourcing of a non-core manufacturing process.

The activity related to the Company’s restructuring accrual is shown below:

	Three Months Ended March 31, 2015
Balance at December 31	$	92
Charged to expense		788
Payments		(348	)
Balance at March 31	$	532

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

13) Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2015 and 2014 was 28.9% and 17.8%, respectively. The effective tax rate for the three months ended March 31, 2015 was lower than the U.S. statutory tax rate primarily due the impact of lower tax rates on foreign income and the deduction for domestic production activities. The effective tax rate for the three months ended March 31, 2014 was lower than the U.S. statutory tax rate primarily due to the discrete release of income tax reserves related to the effective settlement of a foreign tax examination. The geographic mix of income and profits earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory rate also had a significant impact on the effective tax rate for the three months ended March 31, 2014.

At March 31, 2015, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was approximately $19,508. At December 31, 2014, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was approximately $19,610. The net decrease from December 31, 2014 was attributable to a release of reserves for uncertain tax positions due to the expiration of the statute of limitations related to a previously open tax year. As of March 31, 2015, if these benefits were recognized in a future period, the timing of which is not estimable, the net unrecognized tax benefit of $11,524, excluding interest and penalties, would impact the Company’s effective tax rate. The Company accrues interest expense, and if applicable penalties, for any uncertain tax positions. Interest and penalties are classified as a component of income tax expense. At March 31, 2015 and December 31, 2014, the Company had accrued interest on unrecognized tax benefits of approximately $638 and $578, respectively.

The Company and its subsidiaries are subject to examination by federal, state and foreign tax authorities. The Internal Revenue Service commenced an examination of the Company’s U.S. federal tax filings for tax years 2011 through 2013 during the quarter ended March 31, 2015. As a result, the U.S. statute of limitations remains open between tax years 2011 through present. However, carryforward amounts from prior years may still be adjusted upon examination by tax authorities if they are used in a future period. The U.S. statute of limitations for the Company’s tax filings in other jurisdictions varies between fiscal years 2008 through the present.

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Other Assets

3 Months Ended

Mar. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

9) Other Assets

	March 31, 2015		December 31, 2014
Other Current Assets:
Income tax receivable	$	161	$	10,322
Other		21,419		17,190
Total other current assets	$	21,580	$	27,512
Other Assets:
Deferred tax assets, net	$	6,868	$	7,202
Long-term income tax receivable		8,175		8,092
Other		2,122		1,912
Total other assets	$	17,165	$	17,206

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Goodwill and Intangible Assets - Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2015 (remaining)	$ 5,106
2016	6,701
2017	6,628
2018	6,613
2019	6,582
2020	6,514
Thereafter	$ 11,409

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Acquisitions

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions

7) Acquisitions

Precisive, LLC

On March 17, 2015, the Company acquired 100% of Precisive, LLC (“Precisive”), for $12,155, net of cash acquired of $435, subject to final working capital adjustments. The purchase price includes a deferred payment amount of $2,600 to cover any potential indemnification claims, which amount will be paid to the sellers after 15 months assuming there are no indemnification claims. Precisive is an innovative developer of optical analyzers based on Tunable Filter Spectroscopy (TFS), which provide real-time gas analysis in the natural gas and hydrocarbon processing industries, including refineries, hydrocarbon processing plants, gas-to-power machines, biogas processes and fuel gas transportation and metering, while delivering customers a lower total cost of ownership.

The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition.

Current assets	$	285
Non-current assets		18
Intangible assets		5,110
Goodwill		7,085
Total assets acquired		12,498
Total current liabilities assumed		343
Total purchase price, net of cash acquired of $435	$	12,155

The entire purchase price is expected to be deductible for tax purposes. The following table reflects the allocation of the acquired intangible assets and related estimates of useful lives. These acquired intangibles will be amortized on a straight-line basis, which approximates the pattern of use.

Order backlog	$	50	18 months
Customer relationships		1,430	12 years
Exclusive patent license		2,600	10 years
Trade names		210	10 years
Current developed technology		820	10 years
	$	5,110

The fair value of the acquired intangibles was determined using the income approach. This acquisition resulted in a purchase price that exceeded the estimated fair value of tangible and intangible assets, which excess was allocated to goodwill. The Company believes the amount of goodwill relative to identifiable intangible assets relates to several factors including: (1) potential buyer-specific synergies related to market opportunities for a combined product offering; (2) potential to leverage the Company’s sales force and intellectual property to attract new customers and revenue; and (3) potential to strengthen and expand into new but complementary markets, including targeting new applications such as natural gas processing, hydrocarbon processing and other oil and gas segments.

The results of this acquisition were included in the Company’s consolidated operations beginning on March 17, 2015. The pro forma consolidated statements reflecting the operating results of Precisive, had it been acquired January 1, 2014, would not differ materially from the operating results of the Company as reported for the three months ended March 31, 2015. Precisive is included in the Company’s Instruments, Controls and Vacuum Products group and the Advanced Manufacturing Capital Equipment reportable segment. The revenue and net earnings from Precisive, since the date of acquisition through the period ended March 31, 2015, were immaterial.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

8) Goodwill and Intangible Assets

Goodwill

The Company’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. The Company assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process.

Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results.

The changes in the carrying amount of goodwill and accumulated impairment (loss) during the three months ended March 31, 2015 and year ended December 31, 2014 were as follows:

	2015									2014
	Gross Carrying Amount			Accumulated Impairment (Loss)			Net			Gross Carrying Amount			Accumulated Impairment (Loss)			Net
Beginning balance at January 1	$	331,795		$	(139,414	)	$	192,381		$	290,323		$	(139,414	)	$	150,909
Acquired goodwill (1)		7,085			—			7,085			41,993			—			41,993
Foreign currency translation		(136	)		—			(136	)		(521	)		—			(521	)
Ending balance at March 31, 2015 and December 31, 2014	$	338,744		$	(139,414	)	$	199,330		$	331,795		$	(139,414	)	$	192,381

(1) During the first quarter of 2015, the Company recorded $7,085 of goodwill related to the Precisive acquisition. During the second quarter of 2014, the Company recorded $41,612 of goodwill related to the May 30, 2014 acquisition of the Granville-Phillips division of Brooks Automation, Inc. During the first quarter of 2014, the Company recorded a purchase accounting adjustment of $381 related to the March 12, 2013 purchase of Alter S.r.l.

Intangible Assets

Components of the Company’s intangible assets are comprised of the following:

As of March 31, 2015:	Gross		Accumulated Amortization			Foreign Currency Translation			Net
Completed technology (1)	$	101,200	$	(80,477	)	$	(78	)	$	20,645
Customer relationships (1)		37,251		(13,610	)		228			23,869
Patents, trademarks, trade names and other (1)		30,396		(25,383	)		26			5,039
	$	168,847	$	(119,470	)	$	176		$	49,553

(1) During the three months ended March 31, 2015, the Company recorded $5,110 of separately identified intangible assets of which $820 was completed technology, $1,430 was customer relationships and $2,860 was trademarks, trade names and other, related to the Precisive acquisition.

As of December 31, 2014:	Gross		Accumulated Amortization			Foreign Currency Translation		Net
Completed technology (2)	$	100,380	$	(79,875	)	$	135	$	20,640
Customer relationships (2)		35,821		(12,634	)		280		23,467
Patents, trademarks, trade names and other (2)		27,536		(25,290	)		36		2,282
	$	163,737	$	(117,799	)	$	451	$	46,389

(2) During 2014, the Company recorded $38,850 of separately identified intangible assets related to the May 30, 2014 acquisition of the Granville-Phillips division of Brooks Automation, Inc., of which $15,700 was completed technology, $21,250 was customer relationships and $1,900 was trademarks and trade names.

Aggregate amortization expense related to acquired intangibles for the three months ended March 31, 2015 and 2014 was $1,671 and $410, respectively. Estimated amortization expense for each of the remaining fiscal years is as follows:

Year	Amount
2015 (remaining)	$	5,106
2016		6,701
2017		6,628
2018		6,613
2019		6,582
2020		6,514
Thereafter		11,409

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Other Liabilities

3 Months Ended

Mar. 31, 2015

Other Liabilities Disclosure [Abstract]

Other Liabilities

10) Other Liabilities

	March 31, 2015		December 31, 2014
Other Current Liabilities:
Product warranties	$	6,064	$	6,266
Deferred revenue		5,997		8,283
Other		26,452		21,240
Total other current liabilities	$	38,513	$	35,789
Other Liabilities:
Long-term income tax payable	$	20,337	$	20,203
Accrued compensation		12,312		12,068
Other		8,406		6,324
Total other liabilities	$	41,055	$	38,595

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Product Warranties - Product Warranty Activities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Guarantees [Abstract]
Beginning of period	$ 6,266	$ 6,956
Provision for product warranties	1,109	704
Direct charges to warranty liability	(1,244)	(656)
Foreign currency translation	(67)	9
End of period	$ 6,064	$ 7,013

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Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net income	$ 33,786	$ 31,245
Denominator:
Shares used in net income per common share - basic	53,214,000	53,411,000
Effect of dilutive securities:
Stock options, restricted stock and employee stock purchase plan	315,000	365,000
Shares used in net income per common share - diluted	53,529,000	53,776,000
Net income per common share:
Basic	$ 0.63	$ 0.58
Diluted	$ 0.63	$ 0.58

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Debt - Additional Information (Detail) (Japan [Member], USD $)	3 Months Ended
	Mar. 31, 2015 Institution	Dec. 31, 2014
Japan [Member]
Debt Instrument [Line Items]
Number of financial institutions for available lines of credit and borrowing arrangements	2
Aggregate borrowings expire and renewed	3 month intervals
Total available line of credit	$ 19,155,000
Total borrowings outstanding	$ 0	$ 0

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Product Warranties (Tables)

3 Months Ended

Mar. 31, 2015

Guarantees [Abstract]

Product Warranty Activities

Product warranty activities were as follows:

	Three Months Ended March 31,
	2015			2014
Beginning of period	$	6,266		$	6,956
Provision for product warranties		1,109			704
Direct charges to warranty liability		(1,244	)		(656	)
Foreign currency translation		(67	)		9
End of period	$	6,064		$	7,013

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Acquisitions - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	0 Months Ended
	Mar. 31, 2015	Mar. 17, 2015
Business Acquisition [Line Items]
Payments to acquire business, net of cash acquired	$ 9,867
Precisive, LLC [Member]
Business Acquisition [Line Items]
Payments to acquire business, net of cash acquired		12,155
Business acquisition, ownership percentage		100.00%
Business acquisition, cash acquired		435
Business acquisition, deferred consideration payment		$ 2,600
Business acquisition, deferred consideration payment period		15 months

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Stockholder's Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Stockholder's Equity

15) Stockholder’s Equity

Stock Repurchase Program

On July 25, 2011, the Company’s Board of Directors approved a share repurchase program for the repurchase of up to an aggregate of $200,000 of its outstanding common stock from time to time in open market purchases, privately negotiated transactions or through other appropriate means. The timing and quantity of any shares repurchased depends upon a variety of factors, including business conditions, stock market conditions and business development activities, including, but not limited to, merger and acquisition opportunities. These repurchases may be commenced, suspended or discontinued at any time without prior notice.

During the three months ended March 31, 2015, the Company did not repurchase any shares common stock. During the three months ended March 31, 2014, the Company repurchased approximately 32,000 shares of common stock for $945, or an average price of $29.81 per share.

Cash Dividends

Holders of the Company’s common stock are entitled to receive dividends when they are declared by the Company’s Board of Directors. During the three months ended March 31, 2015, the Board of Directors authorized a cash dividend of $0.165 per share, which totaled $8,784. During the three months ended March 31, 2014, the Board of Directors authorized a cash dividend of $0.16 per share, which totaled $8,553.

On May 4, 2015, our Board of Directors declared a quarterly cash dividend of $0.17 per share to be paid on June 12, 2015 to shareholders of record as of June 1, 2015. Future dividend declarations, if any, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors.

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Investments (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Fair Value of Short-Term Available-for-Sale Investments

The fair value of short-term investments with maturities or estimated lives of less than one year consists of the following:

	March 31, 2015		December 31, 2014
Available-for-sale investments:
Time deposits and certificates of deposit	$	5,400	$	20,900
Bankers’ acceptance drafts		327		82
Commercial paper		1,447		—
Corporate obligations		58,331		24,020
Municipal bonds		5,798		2,099
U.S. agency obligations		87,328		82,493
	$	158,631	$	129,594

Fair Value of Long-Term Available-for-Sale Investments

The fair value of long-term investments with maturities of more than one year consists of the following:

	March 31, 2015		December 31, 2014
Available-for-sale investments:
Time deposits and certificates of deposit	$	—	$	48
Asset-backed securities		129,242		75,674
Corporate obligations		90,114		64,669
Municipal bonds		1,880		1,254
U.S. agency obligations		16,077		15,556
	$	237,313	$	157,201

Gross Unrealized Gains and (Losses) Aggregated by Investment Category Short-Term and Long-Term Securities

The following tables show the gross unrealized gains and (losses) aggregated by investment category for short-term and long-term available-for-sale investments:

As of March 31, 2015:	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Short-term investments:
Time deposits and certificates of deposit	$	5,400	$	—	$	—		$	5,400
Bankers’ acceptance drafts		327		—		—			327
Commercial paper		1,447		—		—			1,447
Corporate obligations		58,336		10		(15	)		58,331
Municipal bonds		5,800		1		(3	)		5,798
U.S. agency obligations		87,311		23		(6	)		87,328
	$	158,621	$	34	$	(24	)	$	158,631
Long-term investments:
Asset-backed securities		129,209	$	66	$	(33	)	$	129,242
Corporate obligations		90,128		44		(58	)		90,114
Municipal bonds		1,878		3		(1	)		1,880
U.S. agency obligations		16,070		8		(1	)		16,077
	$	237,285	$	121	$	(93	)	$	237,313
As of December 31, 2014:	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Short-term investments:
Time deposits and certificates of deposit	$	20,901	$	—	$	(1	)	$	20,900
Bankers’ acceptance drafts		82		—		—			82
Corporate obligations		24,029		2		(11	)		24,020
Municipal bonds		2,100		—		(1	)		2,099
U.S. agency obligations		82,488		14		(9	)		82,493
	$	129,600	$	16	$	(22	)	$	129,594
Long-term investments:
Time deposits and certificates of deposit	$	48	$	—	$	—		$	48
Asset-backed securities		75,778		5		(109	)		75,674
Corporate obligations		64,842		1		(174	)		64,669
Municipal bonds		1,258		—		(4	)		1,254
U.S. agency obligations		15,563		2		(9	)		15,556
	$	157,489	$	8	$	(296	)	$	157,201

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Derivatives - Summary of Gains on Derivatives Not Designated as Hedging Instruments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net gain recognized in income	$ 98	$ 106

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Investments - Additional Information (Detail) (Maximum [Member])	3 Months Ended
	Mar. 31, 2015
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment securities maturity period or average life	3 years
Average duration of portfolio	1 year

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Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Tax benefit on changes in value of financial instruments designated as cash flow hedges	$ 133	$ 108
Tax on foreign currency translation adjustments	0	0
Tax expense on unrealized (loss) gain on investments	$ 54	$ 24

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

4) Fair Value Measurements

In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities assessed as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Assets and liabilities of the Company are measured at fair value on a recurring basis as of March 31, 2015 and are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	March 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	87,790	$	87,790	$	—	$	—
Bankers’ acceptance drafts		99		—		99		—
Available-for-sale securities:
Bankers’ acceptance drafts		327		—		327		—
Time deposits and certificates of deposit		5,400		—		5,400		—
Commercial paper		1,447		—		1,447		—
Asset-backed securities		129,242		—		129,242		—
Corporate obligations		148,445		—		148,445		—
Municipal bonds		7,678		—		7,678		—
U.S. agency obligations		103,405		—		103,405		—
Derivatives – currency forward contracts		1,240		—		1,240		—
Total assets	$	485,073	$	87,790	$	397,283	$	—
Liabilities:
Derivatives – currency forward contracts	$	318	$	—	$	318	$	—
Reported as follows:
Assets:
Cash and cash equivalents(1)	$	87,889	$	87,790	$	99	$	—
Short-term investments		158,631		—		158,631		—
Other current assets		1,240		—		1,240		—
Total current assets	$	247,760	$	87,790	$	159,970	$	—
Long-term investments	$	237,313	$	—	$	237,313	$	—
Liabilities:
Other current liabilities	$	318	$	—	$	318	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $95,212 and non-negotiable time deposits of $9,612 as of March 31, 2015.

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2014, are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	129,092	$	129,092	$	—	$	—
Bankers acceptance drafts		131		—		131		—
Corporate obligations		700		—		700		—
Available-for-sale investments:
Time deposits and certificates of deposit		20,948		—		20,948		—
Asset-backed securities		75,674		—		75,674		—
Bankers acceptance drafts		82		—		82		—
Corporate obligations		88,689		—		88,689		—
Municipal bonds		3,353		—		3,353		—
U.S. agency obligations		98,049		—		98,049		—
Derivatives – currency forward contracts		2,110		—		2,110		—
Total assets	$	418,828	$	129,092	$	289,736	$	—
Liabilities:
Derivatives – currency forward contracts	$	—	$	—	$	—	$	—
Reported as follows:
Assets:
Cash and cash equivalents (1)	$	129,923	$	129,092	$	831	$	—
Short-term investments		129,594		—		129,594		—
Other current assets		2,110		—		2,110		—
Total current assets	$	261,627	$	129,092	$	132,535	$	—
Long-term investments	$	157,201	$	—	$	157,201	$	—
Liabilities:
Other current liabilities	$	—	$	—	$	—	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $167,517 and non-negotiable time deposits of $7,997 as of December 31, 2014.

Money Market Funds

Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy.

Bankers’ Acceptance Drafts

Bankers’ acceptance drafts are short-term credit investments created by a non-financial firm and guaranteed by a bank. These drafts are often traded at a discount from face value and may be traded on a secondary market.

Available-For-Sale Investments

As of March 31, 2015 and December 31, 2014, available-for-sale investments consisted of time deposits and drafts denominated in the Euro currency, certificates of deposit, commercial paper, asset-backed securities (which include auto loans, credit card receivables and equipment trust receivables), corporate obligations, municipal bonds and U.S. agency obligations. The Company measures its debt and equity investments at fair value.

Derivatives

As a result of the Company’s global operating activities, the Company is exposed to market risks from changes in foreign currency exchange rates, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate fluctuations through the use of derivative financial instruments. The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The forward foreign currency exchange contracts are valued using broker quotations, or market transactions and are classified within Level 2 of the fair value hierarchy.

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Goodwill and Intangible Assets - Intangible Assets (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 5,110
Completed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	820
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	1,430
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets	2,860
Granville-Phillips [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets		38,850
Granville-Phillips [Member] | Completed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets		15,700
Granville-Phillips [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets		21,250
Granville-Phillips [Member] | Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets		$ 1,900

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015 Customer Segment Product
Segment Reporting [Abstract]
Number of reportable segments	4
Number of product groups	3
Number of customers with net revenues greater than 10% of total net revenues	2
Entity wide net revenue major customer percentage minimum	10.00%

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

Assets and liabilities of the Company are measured at fair value on a recurring basis as of March 31, 2015 and are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	March 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	87,790	$	87,790	$	—	$	—
Bankers’ acceptance drafts		99		—		99		—
Available-for-sale securities:
Bankers’ acceptance drafts		327		—		327		—
Time deposits and certificates of deposit		5,400		—		5,400		—
Commercial paper		1,447		—		1,447		—
Asset-backed securities		129,242		—		129,242		—
Corporate obligations		148,445		—		148,445		—
Municipal bonds		7,678		—		7,678		—
U.S. agency obligations		103,405		—		103,405		—
Derivatives – currency forward contracts		1,240		—		1,240		—
Total assets	$	485,073	$	87,790	$	397,283	$	—
Liabilities:
Derivatives – currency forward contracts	$	318	$	—	$	318	$	—
Reported as follows:
Assets:
Cash and cash equivalents(1)	$	87,889	$	87,790	$	99	$	—
Short-term investments		158,631		—		158,631		—
Other current assets		1,240		—		1,240		—
Total current assets	$	247,760	$	87,790	$	159,970	$	—
Long-term investments	$	237,313	$	—	$	237,313	$	—
Liabilities:
Other current liabilities	$	318	$	—	$	318	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $95,212 and non-negotiable time deposits of $9,612 as of March 31, 2015.

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2014, are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	129,092	$	129,092	$	—	$	—
Bankers acceptance drafts		131		—		131		—
Corporate obligations		700		—		700		—
Available-for-sale investments:
Time deposits and certificates of deposit		20,948		—		20,948		—
Asset-backed securities		75,674		—		75,674		—
Bankers acceptance drafts		82		—		82		—
Corporate obligations		88,689		—		88,689		—
Municipal bonds		3,353		—		3,353		—
U.S. agency obligations		98,049		—		98,049		—
Derivatives – currency forward contracts		2,110		—		2,110		—
Total assets	$	418,828	$	129,092	$	289,736	$	—
Liabilities:
Derivatives – currency forward contracts	$	—	$	—	$	—	$	—
Reported as follows:
Assets:
Cash and cash equivalents (1)	$	129,923	$	129,092	$	831	$	—
Short-term investments		129,594		—		129,594		—
Other current assets		2,110		—		2,110		—
Total current assets	$	261,627	$	129,092	$	132,535	$	—
Long-term investments	$	157,201	$	—	$	157,201	$	—
Liabilities:
Other current liabilities	$	—	$	—	$	—	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $167,517 and non-negotiable time deposits of $7,997 as of December 31, 2014.

XML

Business Segment, Geographic Area, Product and Significant Customer Information - Worldwide Net Revenue for Each Group of Products (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue from External Customer [Line Items]
Net sales from product groups	$ 213,839	$ 206,353
Instruments, Control and Vacuum Products [Member]
Revenue from External Customer [Line Items]
Net sales from product groups	110,436	101,657
Power and Reactive Gas Products [Member]
Revenue from External Customer [Line Items]
Net sales from product groups	88,499	90,602
Analytical Solutions Group Products [Member]
Revenue from External Customer [Line Items]
Net sales from product groups	$ 14,904	$ 14,094

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Investments - Fair Value of Short-Term Available-for-Sale Investments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	$ 158,631	$ 129,594
Time Deposits And Certificates of Deposit [Member]
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	5,400	20,900
Bankers Acceptance Drafts [Member]
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	327	82
Commercial Paper [Member]
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	1,447
Corporate Obligations [Member]
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	58,331	24,020
Municipal Bonds [Member]
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	5,798	2,099
U.S. Agency Obligations [Member]
Schedule of Investments [Line Items]
Fair value of short-term available-for-sale investments	$ 87,328	$ 82,493

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Net Income Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Net Income Per Share

14) Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended March 31,
	2015		2014
Numerator:
Net income	$	33,786	$	31,245
Denominator:
Shares used in net income per common share – basic		53,214,000		53,411,000
Effect of dilutive securities:
Stock options, restricted stock and employee stock purchase plan		315,000		365,000
Shares used in net income per common share – diluted		53,529,000		53,776,000
Net income per common share:
Basic	$	0.63	$	0.58
Diluted	$	0.63	$	0.58

Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding (using the treasury stock method) if securities containing potentially dilutive common shares (stock options and restricted stock units) had been converted to such common shares, and if such assumed conversion is dilutive.

As of March 31, 2015, stock options and restricted stock units related to an aggregate of approximately 760,000 shares were outstanding. For the three months ended March 31, 2015 and 2014, the potential dilutive effect of 0 and approximately 1,400 weighted-average shares, respectively, of restricted stock units and stock options were excluded from the computation of diluted weighted-average shares outstanding as the shares would have an anti-dilutive effect on EPS.