Segment Reporting

6 Months Ended

Jun. 28, 2014

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

Effective April 30, 2014, coincident to and in conjunction with the ATMI merger (see note 2 to the condensed consolidated financial statements) the Company changed its financial segment reporting to reflect management and organizational changes made by the Company. Under the new structure, the managers of two primary product groups are accountable for results at the segment profit level and report directly to the Company’s Chief Executive Officer, who is responsible for evaluating companywide performance and resource allocation decisions between the product groups. Beginning with this report, the Company will report its financial performance based on two reportable segments: Critical Materials Handling and Electronic Materials. The Company's two reportable segments are business divisions that provide unique products and services.

The Company's financial reporting segments are Critical Materials Handling (CMH) and Electronic Materials (EM).

• CMH: provides a broad range of products that filter, handle, dispense, and protect critical materials used in the semiconductor manufacturing process and in other high-technology manufacturing. CMH’s products and subsystems include high-purity materials packaging, fluid handling and dispensing systems and liquid filters as well as microenvironment products that protect critical substrates such as wafers during shipping and manufacturing. CMH also provides specialized graphite components and specialty coatings for high-temperature applications.

• EM: provides high performance materials, materials packaging and materials delivery systems that enable high yield, cost effective semiconductor manufacturing. EM’s products consist of specialized chemistries and performance materials, gas microcontamination control systems and components, and sub-atmospheric pressure gas delivery systems for the safe and efficient handling of hazardous gases to semiconductor process equipment.

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, amortization of intangible assets, charges for the fair value write-up of acquired inventory sold and contingent consideration fair value adjustments.

Summarized financial information for the Company’s reportable segments is shown in the following tables. Periods up to March 30, 2014 have been restated to reflect the basis of segmentation presented below.

	Three months ended				Six months ended
(In thousands)	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Net sales
CMH	$	176,820	$	157,269	$	322,389	$	303,933
EM	74,758		20,275		94,993		38,681
Total net sales	$	251,578	$	177,544	$	417,382	$	342,614

	Three months ended				Six months ended
(In thousands)	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Segment profit
CMH	$	41,069	$	35,971	$	71,595	$	65,111
EM	22,708		3,874		26,412		8,353
Total segment profit	$	63,777	$	39,845	$	98,007	$	73,464

(In thousands)	June 28, 2014		December 31, 2013
Total assets:
CMH	$	487,021	$	400,607
EM	940,871		54,939
Corporate, including cash and cash equivalents	$	435,637	$	419,748
Total assets	$	1,863,529	$	875,294

The following table reconciles total segment profit to operating (loss) income:

	Three months ended						Six months ended
(In thousands)	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Total segment profit	$	63,777		$	39,845		$	98,007		$	73,464
Less:
Charge for fair value write-up of acquired inventory sold	24,293			—			24,293			—
Amortization of intangible assets	9,390			2,359			11,726			4,646
Contingent consideration fair value adjustment	(1,282		)	—			(1,282		)	—
Unallocated general and administrative expenses	54,744			11,099			68,099			22,184
Operating (loss) income	(23,368		)	26,387			(4,829		)	46,634
Interest expense	12,537			40			12,566			44
Interest income	(192		)	(54		)	(415		)	(179		)
Other expense (income), net	1,351			(896		)	1,529			(2,123		)
(Loss) income before income taxes	$	(37,064	)	$	27,297		$	(18,509	)	$	48,892