Segment Reporting

3 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company reports its financial performance based on three reportable segments, which reflects an organizational alignment intended to leverage its unique portfolio of capabilities to create value for its customers by developing mission-critical solutions to maximize manufacturing yields and enable higher performance of devices. While these segments have unique products and services, and technical know-how, they share a single, global sales force, unified core systems and processes, global technology centers, strategic and technology roadmaps, and a focus on a common set of customers. The Company's business is reported in the following segments:

• Specialty Chemicals and Engineered Materials (SCEM): SCEM provides high-performance and high-purity process chemistries, gases, and materials and safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes.

• Microcontamination Control (MC): MC solutions purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

• Advanced Materials Handling (AMH): AMH develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a broad set of applications in the semiconductor industry and other high-technology industries.

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, corporate, finance and information technology functions as well as interest expense, amortization of intangible assets and income taxes.

Summarized financial information for the Company’s reportable segments is shown in the following tables.

	Three months ended
(In thousands)	April 1, 2017		April 2, 2016
Net sales
SCEM	$	114,435	$	101,107
MC	100,055		77,619
AMH	102,887		88,298
Total net sales	$	317,377	$	267,024

	Three months ended
(In thousands)	April 1, 2017		April 2, 2016
Segment profit
SCEM	$	28,140	$	22,416
MC	35,581		18,140
AMH	18,276		18,911
Total segment profit	$	81,997	$	59,467

The following table reconciles total segment profit to income before income taxes:

	Three months ended
(In thousands)	April 1, 2017			April 2, 2016
Total segment profit	$	81,997		$	59,467
Less:
Amortization of intangible assets	10,945			11,289
Unallocated general and administrative expenses	20,132			18,619
Operating income	50,920			29,559
Interest expense	8,473			9,218
Interest income	(80		)	(69		)
Other expense (income), net	902			(675		)
Income before income tax expense	$	41,625		$	21,085