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Segment Reporting
 3 Months Ended
Apr. 01, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. The Company believes these names better represent the markets served and the advanced next - generation product solutions provided to our customers. Other than the name changes, there were no changes in the composition or structure of the Company's reportable segments in the first quarter of 2022.

The Company has the following reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Company’s reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's chief operating decision maker, in determining how to allocate the Company’s resources and evaluate performance.

Performance Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes.

Electronic Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, and ultra-fine wire.

Precision Optics produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials.

The Other reportable segment includes unallocated corporate costs and assets.

Beginning with the first quarter of 2022, the Company began using earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) as the main operating income metric used by management to measure the financial performance of the Company and each segment. The Company made this change because recent acquisitions have resulted in increased purchase accounting amortization expense, which in turn has affected the comparability of results across periods and when compared to other companies. Management believes EBITDA is useful to investors as it better represents the Company's performance excluding the effect of the recent acquisition of significant intangible assets that are now being amortized. EBITDA is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP.
The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for the first quarter of 2022 and 2021:
(Thousands)Three months ended April 1, 2022Three months ended April 2, 2021
Net sales:
Performance Materials (1)
149,630 114,143 
Electronic Materials(1)
270,836 204,644 
Precision Optics28,579 35,599 
Other— — 
Net sales$449,045 $354,386 
Segment EBITDA:
Performance Materials24,792 16,792 
Electronic Materials12,148 10,930 
Precision Optics2,191 7,471 
Other(5,177)(5,600)
Total Segment EBITDA33,954 29,593 
Income tax expense3,021 3,466 
Interest expense - net3,735 761 
Depreciation, depletion and amortization13,179 8,599 
Net income14,019 16,767 
(1) Excludes inter-segment sales of $5.5 million for the first quarter of 2022 and $2.7 million for the first quarter of 2021 for Electronic Materials and $0.3 million for the first quarter of 2022 for Performance Materials. Inter-segment sales are eliminated in consolidation.
The following table disaggregates revenue for each segment by end market for the first quarter of 2022 and 2021:
 (Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsOtherTotal
First Quarter 2022
End Market
Semiconductor$1,800 $214,922 $1,327 $— $218,049 
Industrial40,819 15,866 8,434 — 65,119 
Aerospace and defense23,684 2,614 5,145 — 31,443 
Consumer electronics13,002 325 5,312 — 18,639 
Automotive22,235 1,657 2,464 — 26,356 
Energy10,099 29,119 — — 39,218 
Telecom and data center16,081 45 — — 16,126 
Other21,910 6,288 5,897 — 34,095 
Total$149,630 $270,836 $28,579 $— $449,045 
First Quarter 2021
End Market
Semiconductor$997 $155,061 $471 $— $156,529 
Industrial24,030 12,590 7,375 — 43,995 
Aerospace and defense21,842 1,398 6,576 — 29,816 
Consumer electronics10,044 165 9,460 — 19,669 
Automotive23,507 1,669 2,193 — 27,369 
Energy4,137 27,190 — — 31,327 
Telecom and data center11,343 70 — — 11,413 
Other18,243 6,501 9,524 — 34,268 
Total$114,143 $204,644 $35,599 $— $354,386