Segment Information

12 Months Ended

Dec. 31, 2013

Segment Information

SEGMENT INFORMATION

The Company’s financial reporting segments are: Contamination Control Solutions (CCS), Microenvironments (ME), and Specialty Materials (SMD).

• 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.

• 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.

Intersegment sales are not significant. Corporate assets consist primarily of cash and cash equivalents, short-term investments, assets held for sale, investments, deferred tax assets and deferred tax charges.

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 amortization of intangible assets and contingent consideration fair value adjustment before interest expense, income taxes and equity in earnings of affiliates.

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

(In thousands)	2013		2012		2011
Net sales:
CCS	$	447,410	$	461,838	$	483,958
ME	178,201		182,375		182,150
SMD	67,848		71,690		83,151
Total net sales	$	693,459	$	715,903	$	749,259
(In thousands)	2013		2012		2011
Segment profit:
CCS	$	106,120	$	116,356	$	140,313
ME	35,737		37,223		29,959
SMD	7,087		12,230		18,255
Total segment profit	$	148,944	$	165,809	$	188,527
(In thousands)	2013		2012		2011
Total assets:
CCS	$	276,386	$	234,766	$	213,477
ME	86,810		86,755		89,642
SMD	89,343		90,797		94,191
Corporate	422,755		399,226		327,353
Total assets	$	875,294	$	811,544	$	724,663

(In thousands)	2013		2012		2011
Depreciation and amortization:
CCS	$	17,010	$	15,725	$	15,682
ME	9,302		8,765		7,859
SMD	10,322		10,626		10,694
Corporate	2,181		2,491		2,829
Total depreciation and amortization	$	38,815	$	37,607	$	37,064
(In thousands)	2013		2012		2011
Capital expenditures:
CCS	$	43,635	$	29,650	$	16,170
ME	7,633		12,632		8,618
SMD	5,467		3,980		3,039
Corporate	3,625		3,667		2,440
Total capital expenditures	$	60,360	$	49,929	$	30,267

The following table reconciles total segment profit to operating income:

(In thousands)	2013			2012			2011
Total segment profit	$	148,944		$	165,809		$	188,527
Less:
Amortization of intangibles	9,347			9,594			10,225
Contingent consideration fair value adjustment	(1,813		)	—			—
Unallocated general and administrative expenses	47,173			56,771			51,424
Operating income	94,237			99,444			126,878
Other income, net	(1,958		)	(259		)	(1,086		)
Income before income taxes and equity in net income of affiliates	$	96,195		$	99,703		$	127,964

The following table presents amortization of intangibles for each of the Company’s segments for the years ended December 31, 2013, 2012 and 2011:

(In thousands)	2013		2012		2011
Amortization of intangibles:
CCS	$	4,099	$	4,230	$	4,588
ME	36		139		406
SMD	5,212		5,225		5,231
	$	9,347	$	9,594	$	10,225

The following table summarizes total net sales, based upon the country to which sales to external customers were made for the years ended December 31, 2013, 2012 and 2011:

(In thousands)	2013		2012		2011
Net sales:
United States	$	201,380	$	218,903	$	213,671
Japan	101,529		131,521		140,657
Germany	23,240		24,437		33,020
Taiwan	128,194		126,732		116,007
Singapore	30,942		25,607		28,337
South Korea	76,353		70,763		76,888
China	36,299		31,499		40,080
Other	95,522		86,441		100,599
	$	693,459	$	715,903	$	749,259

The following table summarizes property, plant and equipment, net, attributed to significant countries for the years ended December 31, 2013, 2012 and 2011:

(In thousands)	2013		2012		2011
Property, plant and equipment:
United States	$	123,846	$	86,476	$	59,444
Japan	24,007		27,024		29,295
Malaysia	23,801		28,398		30,328
Other	14,786		15,123		11,487
	$	186,440	$	157,021	$	130,554

In the years ended December 31, 2013, 2012, and 2011, no single customer accounted for ten percent or more of net sales.