Segment Reporting

6 Months Ended

Jun. 29, 2013

Segment Reporting

SEGMENT REPORTING

The Company’s financial reporting segments are Contamination Control Solutions (CCS), Microenvironments (ME) and Specialty Materials (SMD), each of which provide unique products and services, are separately managed and have separate financial information evaluated regularly by the Company’s chief operating decision maker in determining resource allocation and assessing performance.

• CCS: provides a wide range of products and subsystems that purify, monitor and deliver critical liquids and gases used in the semiconductor manufacturing process.

• ME: provides products that protect wafers, reticles and electronic components at various stages of transport, processing and storage related to semiconductor manufacturing.

• SMD: provides specialized graphite components used in semiconductor equipment and offers low-temperature, plasma-enhanced chemical vapor deposition coatings of critical components of semiconductor manufacturing equipment used in various stages of the manufacturing process as well as graphite and silicon carbide for certain critical industrial markets.

Inter-segment sales are not significant. Segment profit is defined as net sales less direct segment operating expenses, excluding certain unallocated expenses, consisting mainly of general and administrative costs for the Company’s human resources, finance and information technology functions as well as interest expense, and amortization of intangible assets.

Summarized financial information for the Company’s reportable segments is shown in the following table:

	Three months ended				Six months ended
(In thousands)	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Net sales
CCS	$	114,634	$	123,144	$	218,595	$	238,696
ME	45,869		44,565		90,001		85,270
SMD	17,041		20,524		34,018		39,670
Total net sales	$	177,544	$	188,233	$	342,614	$	363,636

	Three months ended				Six months ended
(In thousands)	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Segment profit
CCS	$	28,581	$	34,683	$	50,659	$	66,752
ME	9,364		8,523		18,689		14,051
SMD	1,900		4,404		4,116		9,072
Total segment profit	$	39,845	$	47,610	$	73,464	$	89,875

The following table reconciles total segment profit to operating income:

	Three months ended						Six months ended
(In thousands)	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Total segment profit	$	39,845		$	47,610		$	73,464		$	89,875
Amortization of intangible assets	(2,359		)	(2,420		)	(4,646		)	(4,870		)
Unallocated general and administrative expenses	(11,099		)	(13,579		)	(22,184		)	(26,637		)
Operating income	26,387			31,611			46,634			58,368
Other income, net	(910		)	(641		)	(2,258		)	(805		)
Income before income taxes and equity in net income of affiliates	$	27,297		$	32,252		$	48,892		$	59,173