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 year ended September 30, 2018, four customers each accounted for 10% or more of combined sales from both the Materials and Delivery Systems and Services segments. These customers accounted for 20%, 13%, 10% and 10% of our combined sales. For the fiscal years ended September 30, 2017 and 2016, 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. No other customer accounted for more than 10% of combined sales in any period.

Products

For the fiscal year ended September 30, 2018, a Delivery Systems and Services segment product accounted for 10% or more of combined sales from both the Materials and Delivery Systems and Services segments. For the fiscal year ended September 30, 2018, this product accounted for 10% of our combined sales. 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,
	2018			2017			2016
(In millions)
Sales
Materials	$	885.6		$	829.7		$	756.7
Delivery Systems and Services	483.7			293.6			213.4
Corporate	3.0			3.6			—
Combined Total	$	1,372.3		$	1,126.9		$	970.1
Operating Income (Loss)
Materials	$	286.5		$	274.9		$	249.6
Delivery Systems and Services	135.5			71.7			50.8
Corporate	(27.4		)	(20.5		)	(23.3		)
Segment Total	394.6			326.1			277.1
Business separation, restructuring and cost reduction actions	(20.6		)	(25.5		)	(0.9		)
Combined Total	$	374.0		$	300.6		$	276.2
Depreciation and Amortization
Materials	$	47.7		$	43.1		$	44.4
Delivery Systems and Services	2.1			1.4			2.1
Corporate	1.0			1.5			0.4
Combined Total	$	50.8		$	46.0		$	46.9
Equity Affiliates’ Income
Materials	$	—		$	—		$	0.2
Combined Total	$	—		$	—		$	0.2
Total Assets
Materials	$	862.5		$	782.6		$	741.7
Delivery Systems and Services	144.9			110.9			104.0
Corporate	497.9			362.1			206.4
Combined Total	$	1,505.3		$	1,255.6		$	1,052.1
Expenditures for Long-Lived Assets
Materials	$	93.1		$	45.7		$	34.4
Delivery Systems and Services	1.0			1.7			0.7
Corporate	21.3			16.6			0.7
Combined Total	$	115.4		$	64.0		$	35.8

Sales by Product Group



	Year Ended September 30,
	2018		2017		2016
(In millions)
Process Materials	$	408.0	$	401.8	$	387.4
Advanced Materials	477.6		427.9		369.3
Equipment and Installations	421.1		235.4		150.8
Site Services	62.6		58.2		62.6
Corporate	3.0		3.6		—
Total	$	1,372.3	$	1,126.9	$	970.1

Geographic Information



	Year Ended September 30,
	2018		2017		2016
(In millions)
Sales to External Customers
United States	$	418.9	$	375.7	$	349.4
Taiwan	249.1		242.8		230.8
South Korea	459.5		304.1		217.2
China	94.2		64.9		53.8
Europe	61.7		63.1		57.8
Asia, excluding China, Taiwan, and South Korea	88.9		76.3		61.1
Total	$	1,372.3	$	1,126.9	$	970.1



	September 30,
	2018		2017		2016
(In millions)
Long-Lived Assets^(A)
United States	$	224.0	$	170.3	$	138.3
South Korea	130.7		112.2		112.2
Taiwan	38.2		38.2		36.8
Asia, excluding Taiwan and South Korea	11.1		9.2		9.0
Europe	1.1		0.4		0.2
Total	$	405.1	$	330.3	$	296.5


^(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 $99.5 million in 2018, $68.7 million in 2017, and $75.8 million in 2016.