Segment Reporting

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company’s financial segment reporting reflects an organizational alignment intended to leverage the Company’s unique breadth of capabilities to create mission-critical microcontamination control products, specialty chemicals and advanced materials handling solutions that maximize manufacturing yields, reduce manufacturing costs and enable higher device performance for its customers. 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 four segments to create new and increasingly integrated solutions for its customers. The Company reports its financial performance in the following segments:

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

•Advanced Planarization Solutions: APS provides complementary chemical mechanical planarization solutions, advanced materials and high-purity wet chemicals; including CMP slurries, pads, formulated cleans and other electronic chemicals.

•Microcontamination Control: MC offers solutions to filter and purify critical liquid and gaseous chemistries used in semiconductor manufacturing processes and other high-technology industries.

•Advanced Materials Handling: AMH develops solutions to monitor, protect, transport and deliver critical liquid chemistries, wafers and other substrates for a broad set of applications in the semiconductor industry, life sciences 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)	April 1, 2023		April 2, 2022
Net sales
SCEM	$	198,004	$	165,776
APS	250,326		30,645
MC	269,297		266,637
AMH	218,853		198,113
Inter-segment elimination	(14,084)		(11,525)
Total net sales	$	922,396	$	649,646

	Three months ended
(In thousands)	April 1, 2023		April 2, 2022
Segment profit (loss)
SCEM	$	3,268	$	37,692
APS (1)	(32,790)		11,159
MC	95,997		98,618
AMH	48,165		46,690
Total segment profit	$	114,640	$	194,159

(1) APS segment loss is inclusive of $88.9 million goodwill impairment charge. See Note 3.

The following table reconciles total segment profit (loss) to income before income tax (benefit) expense:

	Three months ended
(In thousands)	April 1, 2023		April 2, 2022
Total segment profit	$	114,640	$	194,159
Less:
Amortization of intangible assets	57,574		12,651
Unallocated general and administrative expenses	43,600		18,162
Operating income	13,466		163,346
Interest expense	86,146		12,876
Interest income	(1,325)		(12)
Other (income) expense, net	(4,658)		4,902
(Loss) income before income tax expense	$	(66,697)	$	145,580

In the following tables, revenue is disaggregated by customers’ country or region based on the ship to location of the customer for the three months ended April 1, 2023 and April 2, 2022, respectively.

	Three months ended April 1, 2023
(In thousands)	SCEM		APS		MC		AMH		Inter-segment		Total
North America	$	81,319	$	66,010	$	41,766	$	75,598	$	(14,084)	$	250,609
Taiwan	24,034		34,159		54,236		36,661		—		149,090
China	16,347		31,613		55,671		31,800		—		135,431
South Korea	20,645		35,726		29,829		34,456		—		120,656
Japan	20,277		9,079		49,753		11,316		—		90,425
Europe	23,156		40,271		27,004		21,984		—		112,415
Southeast Asia	12,226		33,468		11,038		7,038		—		63,770
	$	198,004	$	250,326	$	269,297	$	218,853	$	(14,084)	$	922,396

	Three months ended April 2, 2022
(In thousands)	SCEM		APS		MC		AMH		Inter-segment		Total
North America	$	50,112	$	7,192	$	35,355	$	64,341	$	(11,525)	$	145,475
Taiwan	27,263		5,241		78,043		33,718		—		144,265
China	22,544		3,980		40,521		26,828		—		93,873
South Korea	18,405		6,049		33,692		30,009		—		88,155
Japan	22,514		785		47,659		12,864		—		83,822
Europe	11,231		2,458		18,374		22,246		—		54,309
Southeast Asia	13,707		4,940		12,993		8,107		—		39,747
	$	165,776	$	30,645	$	266,637	$	198,113	$	(11,525)	$	649,646