Segment Reporting

3 Months Ended

Mar. 28, 2020

SEGMENT REPORTING

The Company’s financial segment reporting reflects an organizational alignment intended to leverage the Company’s 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 separate products and technical know-how, they share common business systems and processes, technology centers, and strategic and technology roadmaps. The Company leverages its expertise from these three segments to create new and increasingly integrated solutions for its 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 to filter and 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, wafers, and substrates for a broad set of applications in the semiconductor industry and other high-technology industries.

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


	Three months ended
(In thousands)	March 28, 2020		March 30, 2019
Net sales
SCEM	$	144,214	$	124,470
MC	159,261		157,706
AMH	116,137		116,064
Inter-segment elimination	(7,285)		(7,193)
Total net sales	$	412,327	$	391,047


	Three months ended
(In thousands)	March 28, 2020		March 30, 2019
Segment profit
SCEM	$	32,670	$	24,431
MC	50,167		47,323
AMH	20,632		22,367
Total segment profit	$	103,469	$	94,121

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


	Three months ended
(In thousands)	March 28, 2020		March 30, 2019
Total segment profit	$	103,469	$	94,121
Less:
Amortization of intangible assets	16,211		18,657
Unallocated general and administrative expenses	6,514		27,973
Operating income	80,744		47,491
Interest expense	10,559		10,884
Interest income	(321)		(1,225)
Other expense (income), net	878		(248)
Income before income tax expense	$	69,628	$	38,080

In the following tables, revenue is disaggregated by country or region for the three months ended March 28, 2020 and March 30, 2019, respectively.


	Three months ended March 28, 2020
(In thousands)	SCEM		MC		AMH		Inter-segment		Total
Taiwan	$	25,182	$	42,483	$	24,801	$	—	$	92,466
United States	46,550		28,680		33,403		(7,285)		101,348
South Korea	20,129		20,122		15,161		—		55,412
Japan	17,123		28,111		10,420		—		55,654
China	15,510		18,197		11,639		—		45,346
Europe	8,608		13,488		12,548		—		34,644
Southeast Asia	11,112		8,180		8,165		—		27,457
	$	144,214	$	159,261	$	116,137	$	(7,285)	$	412,327


	Three months ended March 30, 2019
(In thousands)	SCEM		MC		AMH		Inter-segment		Total
Taiwan	$	25,173	$	38,490	$	18,123	$	—	$	81,786
United States	32,738		27,582		38,546		(7,193)		91,673
South Korea	19,326		25,815		15,978		—		61,119
Japan	11,678		25,095		11,390		—		48,163
China	14,157		22,165		9,846		—		46,168
Europe	8,777		10,775		15,599		—		35,151
Southeast Asia	12,621		7,784		6,582		—		26,987
	$	124,470	$	157,706	$	116,064	$	(7,193)	$	391,047