Segment Reporting

3 Months Ended

Mar. 29, 2014

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
(In thousands)	March 29, 2014		March 30, 2013
Net sales
CCS	$	105,318	$	103,961
ME	42,791		44,132
SMD	17,695		16,977
Total net sales	$	165,804	$	165,070

	Three months ended
(In thousands)	March 29, 2014		March 30, 2013
Segment profit
CCS	$	24,480	$	22,078
ME	7,837		9,325
SMD	1,913		2,216
Total segment profit	$	34,230	$	33,619

The following table reconciles total segment profit to operating income:

	Three months ended
(In thousands)	March 29, 2014			March 30, 2013
Total segment profit	$	34,230		$	33,619
Less:
Amortization of intangible assets	2,336			2,287
Unallocated general and administrative expenses	13,355			11,085
Operating income	18,539			20,247
Other income, net	(16		)	(1,348		)
Income before income taxes	$	18,555		$	21,595