Segment Reporting

9 Months Ended

Sep. 28, 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				Nine months ended
(In thousands)	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Net sales
CCS	$	105,150	$	112,876	$	323,745	$	351,572
ME	42,520		54,421		132,521		139,691
SMD	16,915		17,152		50,933		56,822
Total net sales	$	164,585	$	184,449	$	507,199	$	548,085

	Three months ended				Nine months ended
(In thousands)	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Segment profit
CCS	$	25,044	$	27,166	$	75,703	$	93,917
ME	8,635		16,771		27,324		30,823
SMD	2,001		2,112		6,117		11,184
Total segment profit	$	35,680	$	46,049	$	109,144	$	135,924

The following table reconciles total segment profit to operating income:

	Three months ended						Nine months ended
(In thousands)	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Total segment profit	$	35,680		$	46,049		$	109,144		$	135,924
Amortization of intangible assets	(2,343		)	(2,389		)	(6,989		)	(7,259		)
Contingent consideration fair value adjustment	1,813			—			1,813			—
Unallocated general and administrative expenses	(11,241		)	(16,526		)	(33,425		)	(43,163		)
Operating income	23,909			27,134			70,543			85,502
Other expense (income), net	963			1,441			(1,295		)	636
Income before income taxes and equity in net income of affiliates	$	22,946		$	25,693		$	71,838		$	84,866