Segment and Geographic Information

12 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

22.SEGMENT AND GEOGRAPHIC INFORMATION

We are comprised of two primary operating segments, Materials and Delivery Systems and Services, under which we manage our operations and assess performance, and a Corporate segment. Our segments are differentiated by the types of products sold.

Materials

The Materials operating segment is an integrated provider of specialty materials for the high-growth electronics industry, focusing on the integrated circuit and flat-panel display markets. This segment provides the global semiconductor industry with high purity process materials for deposition, metallization, chamber cleaning and etching, chemicals mechanical planarization slurries, organosilanes, organometallics and liquid dopants for thin film deposition, and formulated chemical products for post-etch cleaning primarily for the manufacture of silicon and compound semiconductors and thin film transistor liquid crystal displays. The majority of our sales to the semiconductor industry are to large scale multinational companies.

Delivery Systems and Services

The Delivery Systems and Services operating segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to our customers’ manufacturing tools. In addition, the business provides turnkey installation services during facility construction and startup as well as onsite operating services.

Corporate

The Corporate segment includes certain administrative costs such as information technology, general services, human resources, legal, accounting, and other services, as well as foreign exchange gains and losses, and other income and expense that cannot be directly associated with operating segments. Corporate assets primarily include cash and deferred tax assets.

Customers

For the fiscal years ended September 30, 2017, 2016, and 2015, three customers accounted for 10% or more of combined sales from both the Materials and Delivery Systems and Services segments. In 2017, these customers accounted for 22%, 13% and 12% of our combined sales. In 2016, these customers accounted for 21%, 13% and 13% of our combined sales. In 2015, these customers accounted for 21%, 13%, and 11% of our combined sales. No other customer accounted for more than 10% of combined sales in any period.

Products

For the fiscal years ended September 30, 2017 and 2016, a Materials segment product accounted for 10% or more of combined sales from both the Materials and Delivery Systems and Services segments. For the fiscal years ended September 30, 2017 and 2016, this product accounted for 11% and 12% of our combined sales, respectively.

Accounting Policies

The accounting policies of the segments are the same as those described in Note 2, Major Accounting Policies. We evaluate the performance of segments based upon reported segment operating income. Intersegment sales are not material and are recorded at selling prices that approximate market prices.

Segment

	As of and for the year ended September 30,
	2017			2016			2015
(In millions)
Sales
Materials	$	829.7		$	756.7		$	743.4
Delivery Systems and Services	293.6			213.4			265.9
Corporate	3.6			—			—
Combined Total	$	1,126.9		$	970.1		$	1,009.3
Operating Income (Loss)
Materials	$	274.4		$	252.3		$	213.7
Delivery Systems and Services	71.7			50.8			49.1
Corporate	(20.5		)	(23.3		)	(19.2		)
Segment Total	325.6			279.8			243.6
Business separation, restructuring and cost reduction actions	(25.5		)	(0.9		)	(21.6		)
Combined Total	$	300.1		$	278.9		$	222.0
Depreciation and Amortization
Materials	$	43.1		$	44.4		$	48.1
Delivery Systems and Services	1.4			2.1			8.3
Corporate	1.5			0.4			0.5
Combined Total	$	46.0		$	46.9		$	56.9
Equity Affiliates’ Income
Materials	$	—		$	0.2		$	1.0
Combined Total	$	—		$	0.2		$	1.0
Total Assets
Materials	$	773.8		$	733.4		$	754.8
Delivery Systems and Services	110.9			104.0			92.7
Corporate	362.1			206.4			39.9
Combined Total	$	1,246.8		$	1,043.8		$	887.4
Investment in Net Assets of and Advances to Equity Affiliates
Materials	$	—		$	—		$	12.5
Combined Total	$	—		$	—		$	12.5
Expenditures for Long-Lived Assets
Materials	$	45.7		$	34.4		$	21.2
Delivery Systems and Services	1.7			0.7			0.8
Corporate	16.6			0.7			0.1
Combined Total	$	64.0		$	35.8		$	22.1

Sales by Product Group

	Year Ended September 30,
	2017		2016		2015
(In millions)
Process Materials	$	401.8	$	387.4	$	387.3
Advanced Materials	427.9		369.3		356.1
Equipment and Installations	235.4		150.8		208.3
Site Services	58.2		62.6		57.6
Corporate	3.6		—		—
Total	$	1,126.9	$	970.1	$	1,009.3

Geographic Information

	Year Ended September 30,
	2017		2016		2015
(In millions)
Sales to External Customers
United States	$	375.7	$	349.4	$	361.3
Taiwan	242.8		230.8		236.3
South Korea	304.1		217.2		220.3
China	64.9		53.8		70.9
Europe	63.1		57.8		69.2
Asia, excluding China, Taiwan, and South Korea	76.3		61.1		51.3
Total	$	1,126.9	$	970.1	$	1,009.3

	September 30,
	2017		2016		2015
(In millions)
Long-Lived Assets(A)
United States	$	170.3	$	138.3	$	139.9
South Korea	112.2		112.2		105.0
Taiwan	38.2		36.8		39.7
Asia, excluding Taiwan and South Korea	9.2		9.0		16.4
Europe	0.4		0.2		0.1
Total	$	330.3	$	296.5	$	301.1

^(A)  Long-lived assets include plant and equipment, net.

Geographic information is based on country of origin. Included in United States revenues are export sales to third-party customers of $68.7 million in 2017, $75.8 million in 2016, and $54.2 million in 2015.